Management Fundamentals, Canadian Edition BY Schermerhorn, Wright
Email: richard@qwconsultancy.com
Chapter 1:
THE DYNAMIC NEW WORKPLACE True/False Questions CHAPTER INTRODUCTION 1.
An important characteristic of the dynamic new workplace of the 21st century is a highly competitive global economy that has created both unparalleled opportunities and unprecedented uncertainties. T GT Fa
2.
The best employers in the new workplace of the 21st century have high performance expectations, are extremely good at attracting and retaining talented employees, and excel at fully utilizing employees’ talents and valuing their contributions. T GT Fa
3.
High-performing companies are successful because they are better than their competitors at gaining extraordinary results from the people working for them. T GT Fa
4.
The study of management introduces a person to the concepts, themes, and directions that are consistent with career success and organizational leadership in today’s high performance work settings. T GT Fa
WORKING IN THE NEW ECONOMY (STUDY QUESTION 1) 5.
Challenging opportunities, dramatic uncertainty, increasing influence of the Internet, and continuing developments in information technology are important characteristics of the new economy. T GT Fa
6.
In the new economy, organizations are expected to continuously excel in meeting their performance criteria even if it means cutting ethical and social responsibility corners. F GT Fa
7.
Respect, participation, involvement, empowerment, self-management, and teamwork are important themes that underlie the evolution and operation of the new economy. T GT Fa
1
2
Schermerhorn & Wright: Management
8.
Contemporary organizations are expected to excel on performance criteria that include concerns for ethics, social responsibility, employee development, and innovation but not profitability and investment value. F GT Fa
9.
Careers in modern businesses require individuals to take personal initiative, be self-disciplined, and pursue continuous learning. T GT Fa
10.
The challenges of working in the new economy include intellectual capital, globalization, technology, diversity, ethics, and careers. T GT Fa
Intellectual Capital 11.
What people know, what people learn, and what people do with what they know and learn provide the ultimate foundation of organizational performance. T GT Fa
12.
Intellectual capital represents the collective brainpower or shared knowledge of an organization’s human resources. T KT Fa
13.
The new economy is the age of knowledge workers –– people whose minds are critical assets to employers and who add to the intellectual capital of organizations. T KT Fa
Globalization 14.
The national boundaries of world business have become increasingly well defined and impenetrable as global competition has increased. F GT Ap
15.
Globalization refers to the worldwide interdependence of resource flows, product markets, and business competition that characterizes the new economy. T KT Fa
16.
Improvements in technology, the deregulation of markets, and the opening of national borders have helped promote a globalized economy. T GT Fa
17.
The reach of the global economy and world events keep changing the competitiveness of nations as well as business corporations. T GT Ap
Chapter 1: The Dynamic New Workplace
3
Technology 18.
Technology has significantly changed the way work is done and it will continue to change the way work is done. T GT Fa
19.
Technology is an indispensable part of everyday operations in all types of businesses. T GT Fa
20.
The demand is increasing for knowledge workers with the skills to effectively utilize technology; consequently, computer literacy must be mastered and continuously updated as a foundation for career success. T GT Fa
21.
Low-skill workers who are displaced from declining industries will not need to re-tool their skills to find adequate alternative employment. F GT Fa
Diversity 22.
The North American workforce is getting younger even though more women enter the workforce and the percentages of minorities and immigrants in the workforce remain steady. F GT Fa
23.
Workforce diversity describes differences among workers with respect to gender, race, age, and ethnicity, but not with regard to able-bodiedness, religious affiliation, and sexual orientation. F KT Fa
24.
Workforce diversity describes demographic differences among members of the workforce. T KT Fa
25.
While managing workforce diversity has legal considerations it also provides substantial opportunities with respect to performance gains. T GT Fa
26.
Prejudice is the holding of negative, irrational opinions and attitudes about members of diverse populations. T KT Fa
27.
Discrimination refers to an invisible barrier that limits the career advancement of disfavored people or minorities. F KT Fa
28.
The glass-ceiling effect puts people who are different at a disadvantage by denying them the full benefits of organizational membership. F KT Fa
4
Schermerhorn & Wright: Management
Ethics 29.
Ethics refers to a code of moral principles that sets standards of what is “good” or ‘right” as opposed to what is “bad” or “wrong.” F KT Fa
30.
Unfortunately, there are very few ethical role models in contemporary businesses. F GT Fa
31.
Integrity and ethical leadership must be practiced at all organizational levels. T GT Fa
32.
Society is becoming more lenient in its expectations that social institutions conduct their affairs according to high moral standards. F GT Fa
33.
Corporate governance refers to the active oversight of management decisions and company actions by boards of directors. F KT Fa
Careers 34.
Charles Handy uses the Irish shamrock to symbolize the different career implications of the three distinct employment patterns that have emerged in the new economy. T GT Fa
35.
Core workers, contract workers, and part-time workers represent the three different employment patterns in the Irish shamrock model used by Charles Handy. T GT Fa
36.
According to Charles Handy, contract workers are people who pursue a traditional career path. F KT Fa
37.
In Charles Handy’s description of changing careers, a person who performs specific tasks as needed and is compensated on a fee-for-services basis is a known as a core worker. F KT Fa
38.
Since employment patterns are changing dramatically, people should build and maintain a “portfolio of skills” to increase their flexibility and opportunities. T GT Ap
ORGANIZATIONS IN THE NEW WORKPLACE (STUDY QUESTION 2) 39.
Organizations in the new workplace are challenging settings with great opportunities and possibilities, but organizations need not be concerned with making real and positive contributions to society. F GT Fa
Chapter 1: The Dynamic New Workplace
5
40.
Entrepreneurship, love of technology, marketing, and passion for renewal are critical survival skills for the new workplace. T MN Fa
41.
To survive in the new workplace, people must have links with peers and others inside and outside the organization in order to get things done and be able to communicate personal and work group successes and progress. T MN Fa
What Is an Organization? 42.
An organization is a collection of people working together to achieve a common purpose. T KT Fa
43.
Each organization should return value to society and satisfy customers’ needs in order to justify its continued existence. T GT Fa
44.
Quality products and customer satisfaction are important sources of organizational strength and performance advantage. T GT Fa
Organizations as Systems 45.
Open systems interact with their environments in a continual process of transforming resource inputs into product outputs in the form of finished goods and/or services. T KT Fa
46.
An open system is a collection of subsystems that do not relate to one another. F KT Fa
47.
In the open systems model of organizations, the environment provides resource inputs including finished goods and/or services. F GT Fa
48.
In the open systems model of organizations, the organization creates a transformation process for turning resource inputs into outputs. T GT Fa
49.
In the open systems model of organizations, resource inputs affect product outputs through a feedback loop. F GT Fa
6
Schermerhorn & Wright: Management
Organizational Performance 50.
Value creation refers to the operation through which a business or nonprofit organization can add value to the original cost of resource inputs while the business organization earns a profit or the nonprofit organization adds wealth to society. T GT Fa
51.
Productivity refers to the quantity and quality of work performance, relative to resources used. T KT Fa
52.
Performance effectiveness is a measure of resource costs associated with goal accomplishment, whereas performance efficiency is an output measure of task or goal accomplishment. F KT Fa
53.
The combination of poor versus good resource utilization and low versus high goal attainment determines whether an organization is: (a) neither effective nor efficient, (b) effective but not efficient, (c) efficient but not effective, or (d) both effective and efficient. F GT Fa
54.
Consider a manager who emphasizes meeting production targets even if there is a cost overrun. This manager is more interested in performance efficiency than in performance effectiveness. F GT Ap
Changing Nature of Organizations 55.
Some organizational changes regarding human resources in the new workplace include a belief in human capital, an emphasis on teamwork, and a concern for work-life balance. T GT Fa
56.
Because of the pressures to achieve performance excellence, the command-and-control approach to leadership is being re-emphasized. F GT Fa
57.
Total quality management is an organization-wide commitment to continuous improvement and meeting customer needs completely. T KT Fa
MANAGERS IN THE NEW WORKPLACE (STUDY QUESTION 3) 58.
Organizations perform better when they treat their employees better. T GT Ap
59.
Toxic workplaces treat employees mainly as costs to be reduced. T GT Fa
60.
High-performing organizations treat employees as valuable strategic assets that should be carefully nurtured. T GT Fa
Chapter 1: The Dynamic New Workplace
7
What Is a Manager? 61.
A manager is a person in an organization who supports and is responsible for the work efforts and performance accomplishments of other people. T KT Fa
62.
Managers are responsible for their own work as well as the overall performance accomplishments of a team, work group, department, or entire organization. T GT Fa
63.
Managers have the least vital job in society since all they do is help other people to achieve high performance. F GT Fa
Levels and Types of Managers 64.
Top managers are responsible for the performance of an organization as a whole or for one of the larger parts. T KT Fa
65.
Top managers are more concerned with the daily operations of the internal business processes than with activities in the external environment and their impact on the organization. F GT Ap
66.
Middle managers are in charge of relatively large departments or divisions consisting of smaller work units. T KT Fa
67.
An example of a middle manager is a clinic director in a hospital who develops and implements action plans consistent with the objectives of the hospital’s higher-level executives. T KT Ap
68.
A project manager is in charge of a smaller work unit composed of nonmanagerial workers. F
KT
Fa
69.
A team leader or supervisor is someone who coordinates complex projects with task deadlines while working with many persons within and outside the organization. F KT Fa
70.
The responsibilities of a team leader or supervisor will include planning meetings and work schedules; recruiting, training, and developing team members to meet performance standards; and recommending pay increases for subordinates. T MN Fa
71.
Staff managers are responsible for the work activities that make a direct contribution to the organization’s outputs. Line managers use special expertise to advise and support the efforts of staff workers. F KT Fa
8
Schermerhorn & Wright: Management
72.
Functional managers are responsible for complex units that include many functional areas. F KT Fa
73.
General managers are responsible for a single area of activity, such as finance, marketing, production, human resources, accounting, or sales. F KT Fa
74.
Administrators are managers working in public or nonprofit organizations. T KT Fa
Managerial Performance 75.
Managers help people, working individually and in groups, to achieve productivity while using their talents to accomplish organizational goals. T KT Fa
76.
Accountability is the requirement of one person to answer to some higher authority for performance results achieved in his or her area of work responsibility. T KT Fa
77.
Effective managers help others to both (a) achieve high performance by working effectively and efficiently and (b) experience satisfaction in their work. T GT Fa
78.
Quality of work life is an indicator of the overall quality of human experiences in the workplace. T KT Fa
Changing Nature of Managerial Work 79.
High-performing managers are good at building working relationships with others, helping others develop their skills and performance competencies, fostering teamwork, and otherwise creating a work environment that is both performance driven and satisfying to those who do the required work. T GT Fa
80.
When the operating workers are near the top of the organization, just below the customers and clients they serve, and are supported by the managers located at the bottom, the organization is operating with an upside-down pyramid. T GT Fa
81.
In an upside-down pyramid, managers symbolically remain at the top of the organizational pyramid. F GT Fa
82.
In an upside-down pyramid, the manager’s job is to support workers’ efforts to add value to the organization’s goods or services, and the best managers are often known for “helping” and “supporting” rather than “directing” and “order-giving.” T GT Fa
Chapter 1: The Dynamic New Workplace
9
THE MANAGEMENT PROCESS (STUDY QUESTION 4) Functions of Management 83.
Management is the process of planning, organizing, leading, and controlling the use of resources to accomplish performance goals. T KT Fa
84.
Planning is the process of measuring work performance, comparing results to objectives, and taking corrective action as needed. F
KT
Fa
85.
Organizing is the process of assigning tasks, allocating resources, and coordinating the activities of individuals and groups to implement plans. T KT Fa
86.
Leading is the process of arousing people’s enthusiasm to work hard and inspiring their efforts to fulfill plans and accomplish objectives. T KT Fa
87.
Controlling is the process of setting objectives and determining what actions should be taken to accomplish them. F KT Fa
Managerial Activities and Roles 88.
According to Henry Mintzberg, the manager’s interpersonal roles include being an entrepreneur, disturbance handler, resource allocator, and negotiator, whereas the decisional roles include being a monitor, disseminator, and spokesperson. F GT Fa
89.
Important managerial roles include giving, receiving, and analyzing information; interacting with people inside and outside the work unit; and using information to make decisions in order to solve problems or address opportunities. T GT Fa
90.
Managers work long hours, work at an intense pace, work at unified and uniform tasks, work with few communication media, and work largely through technical directives. F GT Fa
Managerial Agendas and Networking 91.
Agenda setting and networking are essential activities in a general manager’s success. T GT Fa
10
Schermerhorn & Wright: Management
92.
Through agenda setting, managers develop action priorities that include goals and plans spanning short and long time frames. T GT Fa
93.
Networking is the process of building and maintaining positive relationships with people whose help may be needed to implement one’s work agendas. T GT Fa
LEARNING HOW TO MANAGE (STUDY QUESTION 5) 94.
Today’s turbulent times present an ever-shifting array of problems, opportunities, and performance expectations that make people’s career success dependent on a genuine commitment to lifelong learning. T GT Ap
95.
Lifelong learning is the ability to translate knowledge into action that results in desired performance. F KT Fa
Essential Managerial Skills 96.
A skill is the process of continuously learning from our daily experiences and opportunities. F KT Fa
97.
A technical skill is the ability to work well in cooperation with other persons, whereas a human skill is the ability to view a situation broadly and solve problems to the benefit of all concerned. F KT Fa
98.
Emotional intelligence is a component of conceptual skills. F KT Fa
99.
A conceptual skill is the ability to use special proficiency or expertise in doing one’s work. F KT Fa
Skill and Outcome Assessment 100.
A managerial competency is a skill-based capability that contributes to high performance in a managerial job. T GT Fa
101.
Communication, teamwork, self-management, leadership, critical thinking, and professionalism are important skills and personal characteristics that provide a foundation for continued professional development and career success. T GT Fa
Chapter 1: The Dynamic New Workplace
11
Multiple Choice Questions CHAPTER INTRODUCTION 102.
The dynamic new workplace of the 21st century is characterized by: A. A highly competitive global economy, driven by innovation and technology, that has created both unparalleled opportunities and unprecedented uncertainties. B. Smart people and smart organizations creating their own futures. C. Progressive companies sharing an important commitment to people D. All of the above. E. None of the above. D GT Fa
103.
The best employers share all of the following characteristics EXCEPT: A. They have high performance expectations. B. They provide employees with both valued rewards and respect for work-life balance. C. They are extremely good at attracting and retaining talented employees. D. They excel at fully utilizing employees’ talents and valuing their contributions. E. They excel at exploiting the natural environment. E GT Fa
104.
__________ are successful because they are better than their competitors at gaining extraordinary results from the people working for them. A. North American companies. B. Japanese companies. C. High technology companies. D. High-performing companies. E. Companies that embrace diversity. D GT Fa
105.
__________ introduces a person to the concepts, themes, and directions that are consistent with career success and organizational leadership in today’s high-performance work settings. A. The study of workforce diversity. B. The study of management. C. The study of the global economy. D. The study of decision making. E. The study of great leaders. B GT Fa
106.
The study of __________ should enable an individual to learn as much as possible to prepare for a career-long commitment to getting great things accomplished by working with and valuing people. A. Management. B. The global economy. C. Decision making. D. Great leaders. E. Information technology. A GT Fa
12
Schermerhorn & Wright: Management
WORKING IN THE NEW ECONOMY (STUDY QUESTION 1) 107.
Which statement does NOT accurately characterize the nature of the new economy? A. It is an economy rich with challenging opportunities. B. It is a networked economy in which the Internet increasingly influences people, institutions, and nations. C. It is a networked economy where people and institutions but not nations are influenced by continuing developments in information technology. D. It is an economy full of dramatic uncertainties. E. It is the economy in which people now live and work. C GT Fa
108.
Which of the following attributes accurately describes the new economy? A. The new economy is a global economy. B. The new economy is knowledge based. C. The new economy is performance driven. D. All of these are attributes of the new economy. E. Only alternatives A and C describe attributes of the new economy. D GT Fa
109.
Which of the following concepts does NOT accurately describe organizational practices in the new economy? A. Respect. B. Empowerment. C. Teamwork. D. Command and control. E. Self-management. D GT Fa
110.
All of the following concepts accurately describe the redefinition of careers in the new economy EXCEPT: A. Guaranteed long-term employment. B. Flexibility. C. Entrepreneurship. D. Free agency. E. Skill portfolios. A GT Fa
Intellectual Capital 111.
The ultimate foundation of organizational performance is __________. A. The availability and amount of financial capital. B. The production of quality goods or the provision of quality services. C. What people know, what people learn, and what people do with what they know and learn. D. Computer-based technology. E. Inspirational and transformational leadership. C GT Fa
Chapter 1: The Dynamic New Workplace
13
112.
__________ is the collective brainpower or shared knowledge of a workforce that can be used to create value. A. Managerial expertise. B. Intellectual capital. C. A learning organization. D. Knowledge management. E. Managerial competency. B KT Fa
113.
Someone whose mind is a critical asset to employers and who adds to the intellectual capital of the organization is a(n) __________. A. Administrator. B. Top-level manager. C. Functional manager. D. Information competent manager. E. Knowledge worker. E KT Fa
114.
Having a successful career in the new economy requires a person to __________. A. Be willing to achieve greater personal competency and accomplishment. B. Have a variety of personal experiences working in foreign countries. C. Be a self-starter and willing to continuously learn. D. A and B. E. A and C. E GT Fa
Globalization 115.
__________ is the worldwide interdependence of resource flows, product markets, and business competition that characterizes the new economy. A. Economic internationalization. B. International management. C. Globalization. D. World interdependence. E. Cross-cultural business. C KT Fa
116.
Which of the following statements accurately describes the impact of the global economy? A. The world is increasingly arranged in regional economic blocks. B. Government leaders in our global economy are concerned about the competitiveness of nations. C. The national boundaries of business are disappearing. D. All of the above. E. None of the above. D GT Fa
14 117.
Schermerhorn & Wright: Management In a(n) __________, countries and peoples are increasingly interconnected with respect to labour markets and business dealings. A. Ethical world. B. Globalized world. C. Ethnocentric world. D. Socially responsible world. E. Ethnically diverse world. B GT Fa
Technology 118.
__________ and __________ help organizations of all types and sizes, locally and internationally, to speed transactions and improve decision making. A. The United Nations computers. B. The United States Department of Commerce the World Trade Organization. C. The Internet information technology. D. Information technology a diverse workforce. E. Globalization ethics. C GT Fa
119.
Which of the following statements does NOT describe an implication of technology for the new economy? A. Technology is an indispensable part of everyday operations in all types of businesses. B. Computer literacy must be mastered and continuously updated as a foundation for career success. C. In virtual space, people in remote locations can hold meetings, share information and files, make plans, and solve problems together. D. The demand is increasing for knowledge workers with the skills to effectively utilize technology. E. Work in most organizations will still be the same even with computers and high technology. E GT Fa
120.
Several technological trends are occurring in the new economy. Which of the following is NOT one of these trends? A. The Internet, World Wide Web, computers, and information technology have transformed and continue to transform the modern workplace. B. The demand for knowledge workers with the skills to utilize technology to full advantage is increasing. C. Computer competency must be mastered and continuously developed as a foundation for career success. D. Low-skill workers who are displaced from declining industries will not need to re-tool their skills to find adequate alternative employment. E. The rate of technological change will continue to accelerate. D GT Fa
Chapter 1: The Dynamic New Workplace
15
Diversity 121.
When a company’s managerial accountability includes supporting employment opportunities and upward mobility for women, minorities, handicapped persons and people between the ages of 50 and 70, the company is __________. A. Providing good working conditions for employees. B. Practicing ethical behavior. C. Valuing workforce diversity. D. Operating according to the Business Fairness and Civil Equities Act. E. Promoting differential treatment for some people. C KT Ap
122.
Differences among members of the workforce –– such as age, gender, religion, national origin, sexual orientation, and able-bodiedness –– are characteristics of __________. A. Organizational gaps. B. Workforce diversity. C. Cultural similarities. D. Economic barriers for workforce development. E. Management challenges. B KT Fa
123.
From a managerial perspective, holding negative, irrational opinions and attitudes toward members of diverse populations is considered to be __________. A. Unholy. B. An injustice. C. Illegal. D. Prejudice. E. A good practice. D KT Fa
124.
Treating minority members unfairly and denying them the full benefits of organizational membership is called __________. A. Prejudice. B. Discrimination. C. The glass ceiling effect. D. Poor quality of work life. E. Selective human resource management. B KT Fa
125.
The existence of an invisible barrier that prevents women and minorities from rising above a certain level of organizational responsibility is called the __________. A. Harassment effect. B. Glass ceiling effect. C. Mirrored wall effect. D. Promotion barrier. E. Sticky floor effect. B KT Fa
16
Schermerhorn & Wright: Management
Ethics 126.
__________ is a code of moral principles that sets standards of what is “good” or “right” as opposed to being “bad” or “wrong.” A. A set of norms. B. The glass ceiling standard. C. A global moral agreement. D. Ethics. E. A United Nations credo. D KT Fa
127.
A well-known business executive goes to jail for not revealing a personal financial interest in a project that will significantly benefit company profits. This executive’s action is an example of __________. A. Providing high company profits. B. Maximizing personal objectives. C. Ignoring managerial ethics. D. Adhering to departmental policies. E. Performing autocratic leadership. C GT Ap
128.
Which of the following are appropriate targets for ethical and social responsibility issues? A. Concerns for the natural environment. B. Protection of consumers. C. Protection of human rights. D. All of the above. E. None of the above. D GT Ap
129.
In the 21st century, organizations and their members will encounter all of the following ethical expectations EXCEPT: A. The expectation of treating customers right and acting in ways consistent with society’s values. B. The expectation of sustainable development and protection of the natural environment. C. The expectation of protecting consumers through product safety and fair practices. D. The expectation of protecting human rights, including employment policies and practices. E. The expectation that stockholders’ interests should be the primary consideration when organizations make decisions affecting the environment. E GT Ap
130.
__________ refers to a board of directors actively overseeing management decisions and company actions. A. The Director’s Club. B. Corporate governance. C. Managerial protectiveness. D. Directorial prejudice. E. Company visioning. B KT Fa
Chapter 1: The Dynamic New Workplace
17
Careers 131.
According to British scholar Charles Handy, the Irish shamrock can be used to describe which set of changing employment patterns in organizations? A. Full-time workers, part-time workers, and temporary workers. B. Contract workers, full-time workers, and core employees. C. Core workers, contract workers, and part-time workers. D. Skilled workers, unskilled labourers, and contract workers. E. Technical employees, unskilled labourers, and skilled workers. C GT Fa
132.
According to Charles Handy, a __________ is a person who pursues a traditional career path. A. Temporary skilled worker. B. Contract worker. C. Part-time worker. D. Core worker. E. Service worker. D GT Fa
133.
In Charles Handy’s description of changing careers, a person who performs specific tasks as needed and is compensated on a fee-for-services basis is a __________. A. Service worker. B. Holiday worker. C. Contract worker. D. Licensed worker. E. Part-time worker. C GT Fa
134.
In Charles Handy’s use of the Irish shamrock to describe changing careers, a person who is hired as needed and for only the number of hours needed is known as a __________. A. Restricted worker. B. Holiday worker. C. Contract worker. D. Dispensable worker. E. Part-time worker. E GT Fa
135.
The typical career in the 21st century __________. A. Won’t be uniformly full-time and limited to a single organization. B. Will require skills to be portable and of value to more than one employer. C. Will require skills to be carefully maintained and upgraded over time. D. All of the above. E. None of the above. D GT Fa
18
Schermerhorn & Wright: Management
ORGANIZATIONS IN THE NEW WORKPLACE (STUDY QUESTION 2) 136.
Which of the following statements does NOT accurately describe organizations in the new workplace? A. Organizations in the new workplace are tied to connectivity made possible by information technology. B. Organizations in the new workplace are challenging settings that provide exciting opportunities and possibilities. C. Organizations in the new workplace should make real and positive contributions to society. D. Organizations are the principal source of careers and people’s economic livelihood. E. Organizations in the new workplace eliminate the need for people to decide who or what they want to work for. E GT Fa
137.
Which of the following is not one of the critical survival skills for the new workplace that is identified in the text? A. Entrepreneurship. B. Love of technology. C. Marketing. D. Finance. E. Passion for renewal. D MN Fa
138.
To survive in the new workplace, people must do all of the following EXCEPT: A. Be able to contribute something of value to their employers. B. Have links with peers and others inside and outside the organization in order to get things done. C. Be able to communicate personal and work group successes and progress. D. Act as if they are running their own businesses. E. Have an extensive knowledge of computer languages and their applications. E MN Fa
What Is an Organization? 139.
An organization is a __________. A. A collection of people working competitively to carry out the mission. B. A collection of people working together to achieve a common purpose. C. A collection of people accountable to a single manager. D. A collection of people working in different departments. E. A collection of people working together in a business. B KT Fa
140.
Providing useful __________ or __________ is a broad purpose that all organizations share. A. Information advertising. B. Repair parts replacement modules. C. Goods services. D. Structures technologies. E. Computer technology Internet access. C GT Fa
Chapter 1: The Dynamic New Workplace 141.
19
A clear sense of purpose that is tied to __________ is increasingly viewed as a source of organizational strength and performance advantage. A. Making a profit and providing a high return to stockholders. B. Producing quality products and providing customer satisfaction. C. Producing goods and services for worldwide consumption. D. Making the highest return on investment and having the greatest profitability. E. Expanding through mergers and acquisitions. B GT Ap
Organizations as Systems 142.
Organizations are systems composed of __________. A. Various subsystems, each of which works for separate goals. B. Sets of organizational policies and processes. C. Interdependent parts that function together to achieve a common purpose. D. Different groupings of independent job tasks. E. Completely independent subsystems that interact with their environments. C GT Fa
143.
Which of the following accurately describes an open system? A. An open system is permissive in observing the rules of management science. B. An open system is a collection of subsystems that do not relate to one another. C. An open system is consistent with the Theory Y system of management. D. An open system interacts with the external environment in a continual process of transforming resource inputs into product outputs in the form of finished goods and/or services. E. An open system treats its employees as responsible adults. D KT Fa
144.
Which of the following statements accurately describes the open systems model of organizations? A. The environment provides resource inputs including finished goods and/or services. B. The organization creates a transformation process for turning resource inputs into outputs. C. The environment consumes product outputs including people, money, materials, technology, and information. D. Resource inputs affect product outputs through a feedback loop. E. Workflows are part of the resource inputs. B GT Fa
145.
Which statement(s) regarding an organization’s environment is/are true? A. The environment is a critical element of the open systems model. B. The environment is a supplier of resources and a source of customers. C. Feedback from the environment tells an organization how well it is doing. D. All of these are true statements regarding an organization’s environment. E. All of these are false statements regarding an organization’s environment. D GT Fa
20
Schermerhorn & Wright: Management
Organizational Performance 146.
__________ refers to the operation through which a business or nonprofit organization can add value to the original cost of resource inputs while the business organization earns a profit or the nonprofit organization adds wealth to society. A. The systems and operations channel. B. The transmission process. C. Value creation. D. Production and operations management. E. The marketing channel. C GT Fa
147.
If an operation adds value to the original cost of resource inputs, nonprofit organizations __________ and business organizations __________. A. Earn a profit add wealth to society. B. Add wealth to society earn a profit. C. Earn a profit . promote corporate social responsibility. D. Add wealth to society avoid the need for corporate governance. E. Promote corporate social responsibility earn a huge market share. B GT Fa
148.
__________ refers to the quantity and quality of work performance, with resource utilization taken into account. A. Effectiveness. B. Efficiency. C. Profitability. D. Productivity. E. Asset management. D KT Fa
149.
An output measure of task or goal accomplishment is called __________. A. Performance efficiency. B. Productivity. C. The bottom line. D. Performance effectiveness. E. Organizational competency. D KT Fa
150.
A measure of the resource cost associated with goal accomplishment is called _________. A. Performance efficiency. B. Productivity. C. The bottom line. D. Performance effectiveness. E. Organizational competency. A KT Fa
Chapter 1: The Dynamic New Workplace
21
151.
Which of the following statements does NOT accurately describe the impact of resource utilization and goal attainment on organizational performance? A. When resource utilization is poor and goal attainment is low, organizational performance is neither effective nor efficient. B. When resource utilization is good and goal attainment is low, organizational performance is efficient but not effective. C. When resource utilization is poor and goal attainment is high, organizational performance is effective but not efficient. D. When resource utilization is good and goal attainment is high, organizational performance is both effective and efficient. E. Organizational performance is unaffected by poor versus good resource utilization and low versus high goal attainment. E GT Fa
152.
A manager who emphasizes cost containment, even at the expense of missing production targets, is more interested in __________ than in __________. A. Performance efficiency performance effectiveness. B. Performance effectiveness performance efficiency. C. Productivity performance efficiency. D. Productivity performance effectiveness. E. Productivity quality of work life. A GT Ap
Changing Nature of Organizations 153.
Organizations are changing in a variety of ways. Which of the following is NOT one of the ways mentioned in the text? A. Preeminence of technology. B. Demise of command-and-control. C. Progressive brand marketing. D. Belief in human capital. E. Emphasis on teamwork. C GT Fa
154.
Organizations are changing in a variety of ways. Which of the following is NOT one of the ways mentioned in the text? A. New workforce expectations. B. Focus on speed. C. Embrace of networking. D. Focus on profitability. E. Concern for work-life balance. D GT Fa
22 155.
Schermerhorn & Wright: Management Managing with an organization-wide commitment to continuous improvement and meeting customer needs completely is the concept of __________. A. Good leadership. B. Total quality management. C. Systems theory. D. Organizational behavior. E. Theory Z. B KT Fa
MANAGERS IN THE NEW WORKPLACE (STUDY QUESTION 3) 156.
Which of the following statements about toxic workplaces is/are true? A. Employees are valuable strategic assets. B. Employees are mainly costs to be reduced. C. Toxic organizations are very different from high-performing organizations. D. A and C are true. E. B and C are true. E GT Ap
What Is a Manager? 157.
A manager may be described as __________. A. Someone who directly supports and helps activate the work efforts and performance accomplishments of others. B. Someone who is unswervingly loyal to the organization. C. Someone who has mastered the hierarchy of authority. D. Someone who contends with corporate politics. E. Someone who tries to produce as much output with as little personal input as possible. A KT Fa
158.
Which of the following statements accurately describes managers? A. Managers are responsible for their own work as well as the overall performance accomplishments of a team, work group, department, or entire organization. B. Managers help others to achieve high performance. C. Mangers have the most vital job in society. D. All of the above. E. None of the above. D GT Fa
Chapter 1: The Dynamic New Workplace
23
Levels and Types of Managers 159.
According to a Wall Street Journal report, managers in contemporary society, are expected to be skilled at doing all of the following EXCEPT: A. Organizing complex subjects. B. Solving problems. C. Communicating ideas. D. Making swift decisions. E. Developing new products. E GT Fa
160.
When managers are classified according to hierarchical level they are described as __________. A. Experienced and inexperienced. B. Headquarters and branch. C. Top, middle, and team leaders or supervisors. D. Functional, staff, and line. E. Administrative and general. C GT Ap
161.
__________ are responsible for the performance of the organization as a whole or of one of its major parts. A. Top managers. B. Middle managers. C. Team leaders or supervisors. D. Functional managers. E. General managers. A KT Fa
162.
Which of the following statements does NOT accurately describe the activities of top managers? A. Top managers pay special attention to the external environment. B. Top managers are alert to potential long-run problems and opportunities, and develop appropriate ways of dealing with them. C. Top managers develop and implement actions plans to accomplish organizational objectives. D. Top managers create and communicate long-term vision. E. Top managers ensure that strategies and objectives are consistent with the organization’s mission. C GT Ap
163.
__________ are in charge of relatively large departments or divisions consisting of several smaller work units. A. Top managers. B. Middle managers. C. Team leaders or supervisors. D. Functional managers. E. General managers. B KT Fa
24
Schermerhorn & Wright: Management
164.
Which statement about middle management is TRUE? A. Middle management includes executives and vice presidents. B. Middle managers work with top managers and coordinate with peers to develop and implement action plans to accomplish organizational objectives C. Middle managers develop high-level action plans for implementation by persons working below them. D. Middle managers do not have other managers reporting to them. E. Middle managers constitute the first level of an organization’s hierarchy of authority. B GT Fa
165.
A person who coordinates complex projects with task deadlines and does so while working with many persons of different expertise both inside and outside the organization is called a __________. A. Group supervisor. B. Staff manager. C. Team leader. D. Project manager. E. Labour leader. D KT Fa
166.
A __________ is a person who is in charge of a small work group composed of nonmanagerial workers. A. Staff manager. B. Line manager. C. Team leader. D. Middle manager. E. Functional manager. C KT Fa
167.
The responsibilities of team leaders and supervisors include all of the following EXCEPT: A. Planning meetings and work schedules. B. Clarifying goals and tasks and gathering ideas for improvement. C. Recommending pay increases and new assignments. D. Paying attention to long-run problems and opportunities in the external environment. E. Recruiting, training, and developing team members. D MN Fa
168.
The responsibilities of team leaders and supervisors include all of the following EXCEPT: A. Encouraging high performance and teamwork. B. Informing team members about organizational goals and expectations. C. Informing higher levels of team needs and accomplishments. D. Coordinating with other teams and supporting their work efforts. E. Developing and implementing action plans for large departments or divisions. E MN Fa
Chapter 1: The Dynamic New Workplace
25
169.
__________ pursue work unit performance objectives that are consistent with higher-level organizational goals. A. Top managers. B. Middle managers. C. Team leaders or supervisors. D. Functional managers. E. General managers. C GT Fa
170.
Managers who have responsibility for work activities that make a direct contribution to producing the organization’s product or service are called __________. A. General managers. B. Administrators. C. Middle managers. D. Staff managers. E. Line managers. E KT FA
171.
In a department store, a department supervisor would be considered to be __________. A. A line manager. B. A staff manager. C. A general manager. D. An administrator. E. An executive. A GT Ap
172.
Managers who use their special technical expertise to support the efforts of line workers are called __________. A. Line managers. B. Staff managers. C. Engineers. D. General managers. E. Administrators. B KT Fa
173.
__________ managers use their special technical expertise to support the efforts of __________ managers. A. General functional. B. Administrative general. C. Higher-level lower-level. D. Staff line. E. Line staff. D KT Fa
26
Schermerhorn & Wright: Management
174.
A manager who has responsibility for a single area of activity in the organization is __________. A. A staff manager. B. A line manager. C. A functional manager. D. A general manager. E. An administrator. C KT Fa
175.
A manager who is responsible for complex organizational units that include many functional areas of activity is __________. A. An administrator. B. A multifunctional manager. C. A technocrat. D. A team captain. E. A general manager. E KT Fa
176.
A plant manager who oversees the purchasing, manufacturing, warehousing, sales, and personnel functions may be described as __________. A. A general manager. B. An administrator. C. A functional manager. D. A staff manager. E. A controller. A GT Ap
177.
Managers who work in public or nonprofit organizations are called __________. A. Staff managers. B. Line managers. C. Functional managers. D. General managers. E. Administrators. E KT Fa
178.
Which statement concerning managers and administrators is TRUE? A. Administrators deal with material resources, while managers deal with human resources. B. Administrators deal with human resources, while managers deal with material resources. C. Administrators cannot be managers and managers cannot be administrators. D. Nonprofit organizations do not have managers; business enterprises do not have administrators. E. Administrators are managers who work in public or nonprofit organizations. E GT Ap
Chapter 1: The Dynamic New Workplace
27
Managerial Performance 179.
The organizational requirement for one person to answer back to a higher authority for performance results in his or her area of work responsibility is known as __________. A. Productivity. B. Quality management. C. Accountability. D. Hierarchical monitoring. E. Performance assurance. C KT Fa
180.
Truly effective managers utilize organizational resources in ways that result in both __________ and __________. A. High-performance outcomes … high levels of satisfaction for the workers. B. High-performance outcomes … high returns to the stockholders. C. High-quality products or services … high returns to the stockholders. D. High profit margins … large market shares. E. High returns to the stockholders … high levels of satisfaction for the workers. A GT Fa
181.
The overall quality of human experiences in the workplace is known as __________. A. Human conditions analysis. B. Standards for workplace experiences. C. Quality of work life. D. Total quality management. E. Quality assurance. C KT Fa
182.
Which statement about quality of work life (QWL) is FALSE? A. QWL expresses true respect for people at work. B. QWL is part of any manager’s accountability. C. QWL provides for protection of individual rights. D. QWL deals with human resource utilization in the performance process. E. QWL changes very little during tough economic times. E GT Ap
Changing Nature of Managerial work 183.
High-performing managers are good at doing all of the following EXCEPT: A. Building working relationships with others. B. Creating a work environment that is only performance-driven. C. Helping others to develop their skills and performance competencies D. Fostering teamwork. E. Creating a work environment that fosters both performance and satisfaction. B GT Fa
28
Schermerhorn & Wright: Management
184.
When the operating workers are near the top of the organization, just below the customers and clients they serve, and are supported by the managers located at the bottom, the organization is operating with __________. A. An ineffective management concept. B. A wrong-sided pyramid. C. An out-dated organizational chart. D. An upside-down pyramid. E. An upside-down organizational chart. D GT Fa
185.
An upside-down pyramid has several practical implications. Which of the following is/are included among these practical implications? A. Each individual is a value-added worker who creates eventual value for the organization’s customers or clients. B. A manager’s job is to support workers’ efforts to add value to the organization’s goods or services. C. The best managers are often known for “helping” and “supporting” rather than “directing” and “order-giving.” D. All of the above are practical implications of the upside-down pyramid. E. None of the above is a practical implication of the upside-down pyramid. D GT Fa
186.
Managerial work is changing in all of the following ways EXCEPT: A. The best managers are known more for “helping” and “supporting” rather than for “directing” and “order-giving.” B. Worker involvement and empowerment are critical building blocks of organizational success. C. Human resources are indispensable, even with high technology. D. The role of managers is to help workers serve customer needs. E. Symbolically, managers remain at the top of the organizational pyramid. E GT Ap
THE MANAGEMENT PROCESS (STUDY QUESTION 4) 187.
Which of the following statements accurately describe the management process? A. The management process involves using four functions to mobilize resources in order to perform important tasks and achieve organizational goals. B. The management process is concerned with the mechanics, but not the results, of managing. C. The management process is a formal system that removes responsibility for decision making from individual managers. D. A and B. E. A and C. A GT Fa
Chapter 1: The Dynamic New Workplace
29
Functions of Management 188.
__________ is the process of planning, organizing, leading, and controlling the use of resources to accomplish performance goals. A. Decision making. B. Budgeting. C. Globalization. D. Management. E. Strategizing. D KT Fa
189.
The four basic functions of management are __________. A. Delegating, planning, organizing, and order giving. B. Organizing, leading, controlling, and order giving. C. Planning, organizing, leading, and controlling. D. Delegating, leading, controlling, and decision making. E. Planning, leading, controlling, and decision making. C GT Fa
190.
Setting performance objectives and determining the action steps for accomplishing them describes the management function of __________. A. Planning. B. Organizing. C. Leading. D. Controlling. E. Decision making. A KT Fa
191.
Suppose that the company’s president decides to develop a policy to increase the company’s commitment to its employees and then develops a set of procedures to implement this policy. The president is practicing the management function of __________. A. Decision making. B. Planning. C. Organizing. D. Leading. E. Controlling. B KT Ap
192.
Assigning tasks, allocating resources, and arranging the coordinated activities of individuals and groups to implement plans describes the management function of __________. A. Delegating. B. Planning. C. Organizing. D. Leading. E. Controlling. C KT Fa
30
Schermerhorn & Wright: Management
193.
Suppose that a manager sets up a committee to develop procedures for dealing with company-wide training needs and then assigns people to conduct specific training programs. This manager is performing which management function? A. Planning. B. Organizing. C. Motivating. D. Leading. E. Controlling. B KT Ap
194.
Arousing the enthusiasm of employees to work hard and inspiring their efforts to fulfill plans and accomplish objectives describes the management function of __________. A. Planning. B. Organizing. C. Order giving. D. Leading. E. Controlling. D KT Fa
194.
Suppose a manager starts an affirmative action program to increase opportunities for minority advancement and then clearly and convincingly communicates the objectives of the program to all employees. By doing this the manager gains their support and participation. This manager is performing which management function? A. Planning. B. Organizing. C. Leading. D. Motivating. E. Controlling. C KT Ap
196.
Measuring work performance, comparing results to objectives, and taking corrective action as needed describes the management function of __________. A. Planning. B. Organizing. C. Leading. D. Controlling. E. Delegating. D KT Fa
197.
When a manager monitors the progress of an affirmative action program to advance minorities within the corporation, reviews progress on changes in employee attitudes, calls a special meeting to discuss problems, and makes appropriate adjustments in the program, the manager is performing the function of __________. A. Planning. B. Organizing. C. Leading. D. Controlling. E. Delegating. D KT Ap
Chapter 1: The Dynamic New Workplace
31
Managerial Activities and Roles 198.
Henry Mintzberg identified a set of roles that managers perform. These roles are grouped into which of the following three categories? A. Interpersonal, strategic, and decisional. B. Strategic, informational, and authoritarian. C. Interpersonal, informational, and decisional. D. Supervisory, authoritarian, and decisional. E. Supervisory, informational, and strategic. C GT Fa
199.
Which of the following descriptions of Mintzberg’s managerial roles is correct? A. Interpersonal roles include the monitor, disseminator, and spokesperson. B. Informational roles include the figurehead, leader, and liaison. C. Decisional roles include the entrepreneur, disturbance handler, resource allocator, and negotiator. D. A and B are correct. E. B and C are correct. C GT Fa
200.
According to Henry Mintzberg, managerial roles that involve the giving, receiving, and analyzing of information are called __________. A. Informational roles. B. Interpersonal roles. C. Decisional roles. D. Technical roles. E. Conceptual roles. A GT Fa
201.
According to Henry Mintzberg, managerial roles that involve interactions with people inside and outside the work unit are called __________. A. Informational roles. B. Interpersonal roles. C. Decisional roles. D. Technical roles. E. Human roles. B GT Fa
202.
According to Henry Mintzberg, managerial roles that involve using information to make decisions in order to solve problems or address opportunities are called __________. A. Informational roles. B. Interpersonal roles. C. Decisional roles. D. Technical roles. E. Conceptual roles. C GT Fa
32 203.
Schermerhorn & Wright: Management According to the research conducted on the nature of managerial work, which of the following is FALSE? A. Managers work at fragmented and varied tasks. B. Managers work at an intense pace. C. Managers work long hours. D. Managers spend much time working alone. E. Managers work with many communication media. D GT Fa
Managerial Agendas and Networks 204.
According to John Kotter, two activities are fundamental to a general manager’s success in mastering daily challenges. These two activities are __________. A. Negotiating and directing. B. Motivating and controlling. C. Planning and controlling. D. Agenda setting and networking. E. Communicating and leading. D GT Fa
205.
When general managers develop action priorities for their jobs that include goals and plans spanning long and short time frames, they are performing the important activity of __________. A. Agenda setting. B. Leading. C. Motivating. D. Controlling. E. Information processing. A GT Fa
206.
One conclusion of John Kotter’s research on effective general managers is that they must pay attention to the importance of __________. A. Building organization structures that enforce discipline. B. Motivating workers through incentive pay and reward plans. C. Developing technical knowledge regarding the tasks at hand. D. Building and maintaining good relationships with people whose help they may need to fulfill their agendas. E. Serving as a figurehead in office ceremonies. D GT Fa
Chapter 1: The Dynamic New Workplace
33
LEARNING HOW TO MANAGE (STUDY QUESTION 5) 207.
Which of the following statements does NOT provide a correct description of the forces affecting lifelong learning? A. Workers are expected to become involved, fully participate, demonstrate creativity, and find self-fulfillment in their work. B. Change is a way of life that demands new individual and organizational responses. C. Workers are expected to be team players that understand the needs and goals of the total organization. D. Only managers must be concerned about the demanding quest for high performance. E. Workers are expected to use new technologies to their full advantage. D GT Fa
208.
__________ is the process of continuously learning from our daily experiences and opportunities. A. Managerial learning. B. Continuous improvement. C. Lifelong learning. D. Experienced-based skill development. E. Competency acquisition. C KT Fa
209.
A commitment to __________ helps people to build portfolios of skills that are always up to date, job relevant, and valuable in a dynamic and ever-changing environment. A. Organizational development. B. Managerial activity. C. Experienced-based skill development. D. Competency acquisition. E. Lifelong learning. E GT Ap
Essential Managerial Skills 210.
In management, the ability to translate knowledge into action that results in desired performance is called __________. A. The managerial challenge. B. The management process. C. Performance effectiveness. D. Performance efficiency. E. A skill. E KT Fa
34
Schermerhorn & Wright: Management
211.
According to Robert Katz, the essential skills of management can be grouped into three categories. These categories are: A. Communicative, procedural, and strategic. B. Communicative, technical, and human. C. Human, supervisory, and conceptual. D. Technical, human, and conceptual. E. Procedural, supervisory, and strategic. D GT Fa
212.
The ability to apply a special proficiency or expertise to perform specific tasks is known as __________. A. A technical skill. B. A procedural skill. C. An administrative skill. D. A conceptual skill. E. A supervisory skill. A KT Fa
213.
A manager who is using spreadsheet software to prepare a departmental budget is exercising a __________ skill. A. Supervisory. B. Conceptual. C. Creative. D. Technical. E. Strategic. D GT Ap
214.
__________ skills are most important at lower levels of managerial responsibility. A. Supervisory. B. Human. C. Technical. D. Administrative. E. Conceptual. C GT Fa
215.
The ability to work well in cooperation with other persons is described as __________. A. A technical skill. B. A human skill. C. A communicative skill. D. An administrative skill. E. A conceptual skill. B KT Fa
Chapter 1: The Dynamic New Workplace
35
216.
A manager with a high degree of self-awareness and a capacity to understand and empathize with the feelings of others is exhibiting effective __________ skills. A. Technical. B. Strategic. C. Conceptual. D. Learning. E. Human. E GT Fa
217.
An important component of __________ is the ability to manage ourselves and our relationships effectively, which is also known as __________ A. Human skills emotional intelligence. B. Human skills self-management. C. Informational roles self-management. D. Emotional intelligence interpersonal roles. E. Emotional intelligence interactional skills. A KT Fa
218.
The degree of importance associated with __________ skills remains relatively consistent across all levels of management. A. Technical. B. Human. C. Diagnostic. D. Conceptual. E. Analytical. B GT Fa
219.
__________ skills include the ability to break down problems into smaller parts, to see the relationships among the parts, and to recognize the implications of any one problem for others. A. Strategic. B. Administrative. C. Conceptual. D. Supervisory. E. Holistic. C KT Fa
220.
A management team that is thinking critically and analytically in developing an organizational strategy for dealing with a highly competitive global environment is using __________ skills. A. Technical. B. Strategic. C. Conceptual. D. Learning. E. Human. C GT Ap
36 221.
Schermerhorn & Wright: Management Which statement concerning the relative importance of technical, human, and conceptual skills at different management levels is TRUE? A. Their relative importance tends to be about the same at each managerial level. B. Technical skills are of greatest importance for middle managers. C. Conceptual skills are most important for top managers. D. Human skills are of greatest importance for lower-level managers. E. Technical skills are not needed at all by top managers. C GT Fa
Skill and Outcome Assessment 222.
A skill-based capability that contributes to high performance in a managerial job is called a __________. A. Managerial competency. B. Technical skill. C. Managerial skill. D. Learned skill. E. Success factor. A KT Fa
223.
Managerial competencies are implied in which of the following managerial elements? A. The management processes of planning, organizing, leading, and controlling. B. The information, interpersonal, and decision-making demands of managerial roles. C. The managerial activities of agenda setting and networking. D. All of the above reflect managerial competencies. E. None of the above reflects managerial competencies. D GT Fa
224.
Which of the following is NOT among the skills and personal characteristics that the text describes as providing a foundation for continued professional development and career success? A. The ability to share ideas and findings in clear written and oral expression. B. The ability to work effectively as a team member and team leader. C. The ability to initiate change in ambiguous situations. D. The ability to gather and analyze information for creative problem solving. E. The ability to sustain a positive impression, instill confidence, and maintain career advancement. C GT Fa
225.
The text describes skills and personal characteristics that provide a foundation for continued professional development and career success. Which of the following is NOT one of these skills or personal characteristics? A. Teamwork. B. Self-management. C. Leadership. D. Critical thinking. E. Perceptual acuity. E GT Fa
Chapter 1: The Dynamic New Workplace
37
Essay Questions 226.
Describe the various challenges that managers must face in the 21st century workplace. To what extent are you, as a future manager, prepared to meet each of these challenges? Explain your answer. Suggested Answer: The challenges that managers must face in the 21st century work environment include the following: • • • • •
•
Intellectual capital ⎯ intellectual capital and knowledge workers increasingly drive organizations; since knowledge constantly becomes obsolete, everyone is under pressure to learn and continually apply new knowledge. Globalization ⎯ economic competitiveness is a challenge of worldwide scope. Technology ⎯ the availability and ease of transferring information is affecting organizational work environments and the very nature of business itself. Diversity ⎯ organizations and their members are being challenged to deal positively with differences among people; meeting this challenge creates strategic opportunity. Ethics ⎯ modern society expects managers and leaders in all organizations to conduct their affairs according to high moral standards. Careers ⎯ careers will be different and everyone must be concerned with
developing their skill portfolios to remain valuable resources to organizations Each student should assess his/her own level of competency with respect to dealing with these challenges, as well as why he/she is/isn’t prepared to meet these challenges.
227.
What is an organization? What is a manager? Why do organizations need managers? Suggested Answer: An organization is a collection of people working together to achieve a common purpose. A manager is a person in an organization who supports and is responsible for the work performance of one or more other persons. Every manager’s job includes the responsibility of helping other people to achieve high performance. Without this help, the efforts of the organization’s members probably would not be coordinated sufficiently to achieve the organization’s common purpose.
228.
Explain the nature of productivity, performance effectiveness, and performance efficiency; and then describe the interrelationships among these concepts. Suggested Answer: Productivity is the quantity and quality of work performance with resource utilization taken into account. Productivity reflects both performance effectiveness and performance efficiency. Performance effectiveness is a measure of task or goal accomplishment. Performance efficiency is a measure of the resource costs associated with goal accomplishment; it is a measure of outputs realized compared to inputs consumed. Effectiveness does not guarantee efficiency or vice versa. An organization can be effective but not efficient, efficient but not effective, neither
38
Schermerhorn & Wright: Management effective nor efficient, or both effective and efficient. To be truly productive an organization must be both effective and efficient.
229.
Define the three levels of management and explain the major responsibilities of managers at each level. Suggested Answer: The three levels of management are top managers, middle managers, and team leaders or supervisors. Top managers ensure that major performance objectives are established and accomplished in accordance with the organization’s purpose. Top managers are responsible for the performance of an organization as a whole or for one of its larger parts. Middle managers are in charge of relatively large departments or divisions consisting of several smaller work units. Middle managers report to top managers and coordinate with peers to develop and implement action plans to accomplish organizational objectives. A team leader or supervisor is someone in charge of a smaller work unit composed of non-managerial workers. Team leaders or supervisors ensure that their work teams or units meet performance objectives that are consistent with the plans of middle and top management.
230.
Define each of the four functions of management and Mintzberg’s ten managerial roles. Describe how Mintzberg’s managerial roles might be used in performing the four functions of management. Suggested Answer: The four functions of management are planning, organizing, leading, and controlling. Planning is the process of setting objectives and determining what actions should be taken to accomplish them. Organizing is the process of assigning tasks, allocating resources, and arranging and coordinating the activities of individuals and groups to implement plans. Leading is the process of arousing people’s enthusiasm to work hard and direct their efforts to fulfill plans and accomplish objectives. Controlling is the process of measuring work performance, comparing results to objectives, and taking corrective action as needed. Mintzberg’s managerial roles include the following: (a) interpersonal roles (figurehead, leader, and liaison) involve interactions with people inside and outside the work unit; (b) informational roles (monitor, disseminator, and spokesperson) involve giving, receiving, and analyzing information; and (c) decisional roles (entrepreneur, disturbance handler, resource allocator, and negotiator) involve using information to make decisions, solve problems, or address opportunities. While all ten managerial roles might be used at one time or another in performing each of the four functions of management, many of them are more likely to be used in carrying out certain managerial functions. The entrepreneurial role, for instance, is closely linked to the managerial function of planning. In this role, direction is being set for the organization. The liaison, disseminator, and resource allocator roles are closely associated with organizing. The figurehead, leader, and spokesperson roles are closely aligned with leading. The monitor role is related primarily to controlling.
Chapter 1: The Dynamic New Workplace
39
231. Amit is the manager of a local book store. The store has two assistant managers. There is a regional manager, a provincial manager and COO and CEO above him. Answer the following questions. a) What level of manager is Amit? Explain. b) Is Amit a line or a staff manager? Explain. c) Is Amit a general or a functional manager? Explain. d) Is Amit a manager or an administrator? Explain. e) Describe what Amit’s day may be like? f) Describe how Amit will use the managerial skills in your job. Which of these skills is the most important? Suggested Answer: a) Amit is a supervisor. He has one level of management working below him (assistant managers) and many levels above him. b) Amit is a line manager. His work directly contributes to the organization’s output. c) Amit is a general manager. He hires employees, creates marketing campaigns and orders inventory. d) Amit is a manager. The book store is a for-profit business. e) Amit’s day will be very busy. He will look after staff problems, handle employee absences, work at a hectic pace, be interrupted frequently and communicate using a variety of media. f) Amit will use his technical skills by creating marketing campaigns, hiring staff, scheduling, accounting and using the computerized ordering system. Amit will use his human skills by interacting with his employees, customers, and bosses. He will use his conceptual skills by analyzing book sales, creating training programs for the staff, and problem solving high staff turnover. The most important skill for Amit is technical.
Chapter 2:
MANAGEMENT ⎯ PAST TO PRESENT True/False Questions CHAPTER INTRODUCTION 1.
Since the world of work and business are changing ⎯ often dramatically in some industries ⎯ managers have little to gain from studying the history of management thought. T GT Fa
2.
Many modern management concepts have parallels in some of the historical management writings, and contemporary managers are trying to perfect many ideas that have deep historical roots. T GT Fa
3.
Management thinking is a relatively recent phenomenon, dating back no further than the industrial revolution. F GT Fa
4.
Management activities have been unimportant to the development of different civilizations. F GT Fa
5.
Ideas of specialized tasks and division of labour helped to accelerate industrial change. T GT Fa
CLASSICAL MANAGEMENT APPROACHES (STUDY QUESTION 1) 6.
The three branches of classical management approaches are scientific management, administrative principles, and bureaucratic organization. T GT Fa
7.
Henri Fayol and Mary Parker Follett were important contributors to scientific management, and Frederick Taylor and Max Weber were important contributors to administrative principles. F GT Fa
8.
A major assumption of classical approaches to management is that people are driven by human concerns for other workers. F GT Fa
39
40
Schermerhorn & Wright: Management
Scientific Management 9.
According to Frederick Taylor, the primary objective of management is to secure maximum prosperity for both the employer and the employees. T GT Fa
10.
Max Weber is known as the father of scientific management. F GT Fa
11.
Frederick Taylor believed that employees who did their jobs without having clear and uniform specifications would lose efficiency and perform below their true capabilities. T GT Fa
12.
Scientific management provides practical lessons that are still useful for managers of contemporary businesses. T MN Fa
13.
Scientific management seeks to develop a scientific approach to every job that includes careful selection and training of workers as well as proper supervisory support. T KT Fa
14.
Frederick Taylor’s four principles of scientific management focus on developing a science for every job, carefully selecting workers based on their abilities, carefully training workers and giving them proper incentives, and supporting workers through careful planning of the work. T GT Fa
15.
Administrative study is the science of reducing a job or task to its basic physical motions. F KT Fa
16.
Motion studies, conducted by Frank and Lillian Gilbreth, provided the foundation for modern job simplification, work standard techniques, and incentive wage plans. T GT Fa
Administrative Principles 17.
Henri Fayol identified five rules of management ⎯ foresight, organization, command, coordination, and control ⎯ that closely resemble the four management functions studied today. T GT Fa
18.
Henri Fayol set forth several management principles that could be taught to people to improve the quality of management practice. T GT Fa
19.
Henri Fayol’s scalar chain principle, unity of command principle, and unity of direction principle mirror the managerial functions of planning, organizing, leading, and controlling. F GT Fa
Chapter 2: Management ⎯ Past to Present
41
20.
The scalar chain principle states that there should be a clear and unbroken line of communication from the top to the bottom of the organization. T GT Fa
21.
The unity of command principle specifies that one person should be in charge of all activities that have the same performance objective. F GT Fa
22.
The unity of direction principle specifies that each person should receive orders from only one boss. F GT Fa
23.
Mary Parker Follett brought an understanding of groups and a deep commitment to human cooperation to her writings about businesses and other organizations. T GT Fa
24.
According to Mary Parker Follett, managers should dominate workers to better form a productive community. F GT Fa
25.
Mary Parker Follett believed that making every employee an owner in the business would create feelings of collective responsibility. T GT Fa
26.
Mary Parker Follett’s belief that businesses were services and that private profits should always be considered in relation to the public good foreshadowed today’s concerns with managerial ethics and corporate social responsibility. T GT Fa
Bureaucratic Organization 27.
Max Weber believed that people held positions of authority because of whom they knew, not what they knew. In Weber’s view, this problem could be addressed effectively through a form of organization known as bureaucracy. T GT Ap
28.
A bureaucracy is an ideal form of organization that is rational and efficient, and is founded on the principles of logic, order, and legitimate authority. T KT Fa
29.
Bureaucratic organizations are characterized by a clear division of labour, a clear hierarchy of authority, informal rules and procedures, personal coordination and control, and careers based on seniority or nepotism. F GT Fa
30.
Efficiency in the utilization of resources and fairness in the treatment of employees and clients are potential advantages of bureaucratic organizations. T GT Fa
42
Schermerhorn & Wright: Management
31.
The work of Max Weber still has a major impact on management but only in Europe. F GT Fa
32.
Red tape, slowness in handling problems, resistance to change, and employee apathy are disadvantages of bureaucratic organizations. T GT Fa
BEHAVIOURAL MANAGEMENT APPROACHES (STUDY QUESTION 2) 33.
The behavioural management approaches include Maslow’s human needs theory and Argyris’s personality and organization theory but not the Hawthorne studies or Theory X and Theory Y. F GT Fa
34.
The human resource approaches to management include the Hawthorne studies, Maslow’s theory of human needs, and McGregor’s Theory X and Theory Y. T GT Fa
35.
A major assumption of human resource approaches to management is that people are rational and motivated primarily, if not solely, by economic incentives. F GT Fa
The Hawthorne Studies and Human Relations 36.
The initial focus of the Hawthorne studies reflected a scientific management perspective, but that focus later shifted toward social and human concerns in the workplace. T GT Fa
37.
Despite repeated efforts, the Hawthorne studies found no consistent results regarding how economic incentives and the physical conditions of the workplace affected productivity. T GT Fa
38.
Neither group atmosphere nor participative supervision was found to be an important explanatory factor for improved productivity in the relay assembly test-room studies at Western Electric’s Hawthorne Works. F GT Fa
39.
The Hawthorne Studies shifted the attention of managers and scholars away from the technical and structural concerns emphasized by the classical management approach and toward the study of social and human concerns as keys to productivity. T GT Fa
40.
A key lesson from the Hawthorne studies is that people’s feelings, attitudes, and relationships with co-workers influence their performance. T GT Fa
41.
The Hawthorne effect suggests that managers using good human relations will achieve productivity. F KT Fa
Chapter 2: Management ⎯ Past to Present
43
42.
The Hawthorne studies contributed to the emergence of the human relations movement, which emphasized the notion that managers who use good human relations in the workplace will achieve productivity. T KT Fa
43.
The human relations movement states that people who are singled out for special attention tend to perform in the way they believe they are expected to perform. F KT Fa
44.
The Hawthorne effect states that people who are singled out for special attention tend to perform in the way they believe they are expected to perform. T KT Fa
45.
The field of organizational behaviour focuses on the study of individuals and groups in organizations. T KT Fa
Maslow’s Theory of Human Needs 46.
An important contribution to the human relations movement was Abraham Maslow’s work in the area of human needs and the application of his theory to the workplace. T GT Fa
47.
A need is a physiological or psychological deficiency that a person feels a compulsion to satisfy. T KT Fa
48.
Maslow’s theory of human needs applies a deficit principle and a progression principle to five need levels that are arranged in a hierarchy. T GT Fa
49.
Physiological needs refer to the needs for basic biological maintenance such as food, water, and physical well-being. T GT Fa
50.
Safety needs refer to the needs for security, protection, and stability in the events of daily life. T GT Fa
51.
Social needs concern the needs for respect, prestige, recognition, and self-esteem; and a personal sense of competency and mastery. F GT Fa
52.
Esteem needs involve the needs for love, affection, and belongingness in one’s relationships
with other people. F 53.
GT
Fa
Self-actualization needs include the needs be self-fulfilled and to grow and use abilities to the fullest and most creative extent. T GT Fa
44
Schermerhorn & Wright: Management
54.
According to the progression principle of Maslow’s theory of human needs, a satisfied need is not a motivator of behaviour. F GT Fa
55.
According to the deficit principle of Maslow’s theory of human needs, a need at any level only becomes activated when the next lower-level need has been satisfied. F GT Fa
McGregor’s Theory X and Theory Y 56.
Douglas McGregor believed that managers should address the social and self-actualizing needs of employees. T GT Fa
57.
Theory X managers assume that subordinates are: willing to work, capable of self-control, willing to accept responsibility, imaginative and creative, and capable of self-direction. F KT Fa
58.
Theory Y managers assume that subordinates dislike work, lack ambition, are irresponsible, resist change, and prefer to be led rather than to lead. F KT Fa
59.
Theory Y managers believe that their subordinates dislike work and lack ambition. Theory X managers believe that employees like work and will accept responsibility. F KT Fa
60.
A self-fulfilling prophecy occurs when a person acts in ways that confirm another’s person’s original expectations. T KT Fa
61.
Theory X managers tend to be directive in their relationships with others and take a commandand-control orientation with them. T GT Ap
62.
Theory Y managers allow their subordinates to participate in decision-making, delegate authority to them, and provide them with greater job autonomy and job variety. T GT Ap
Argyris’s Theory of Adult Personality 63.
According to Chris Argyris, management principles and practices that are associated with classical management approaches are inconsistent with the mature adult personality. T GT Fa
64.
Argyris believes that implementation of classical management ideas such as the bureaucratic organization and Fayol’s administrative principles will ensure that workers are productive and efficient. F GT Fa
Chapter 2: Management ⎯ Past to Present
45
65.
Chris Argyris believes that conditions for failure are created by a mismatch between worker’s personalities and management practices. T GT Ap
66.
According to Argyris’s theory of personality and organization, managers who treat people as mature and responsible adults will achieve the highest productivity T GT Fa
QUANTITATIVE MANAGEMENT APPROACHES (STUDY QUESTION 3) 67.
Quantitative management approaches developed long after the human resource approaches to management. F GT Fa
68.
The quantitative management approaches use mathematical techniques to improve managerial decision-making and problem solving. T GT Fa
Management Science 69.
Management science refers to the scientific application of mathematical techniques to management problems. T GT Fa
70.
The terms operations research and management science mean very different things. F GT Fa
71.
Mathematical forecasting helps make future projections that are useful for planning. T GT Fa
72.
Inventory modeling helps to establish how much to order and when to order. T GT Fa
73.
Linear programming is used to help allocate service personnel or workstations to minimize customer waiting time and service cost. F GT Fa
74.
Queuing theory is used to calculate how best to allocate resources among competing uses. F GT Fa
75.
Network models break large tasks into smaller components to allow for better analysis, planning, and control of complex projects. T GT Fa
76.
Simulation creates models of problems so different solutions under various assumptions can be tested. T GT Fa
46
Schermerhorn & Wright: Management
Applied Quantitative Analysis Today 77.
Operations management focuses on applying quantitative management approaches to the production of goods and services. T GT Fa
78.
When a mathematical solution is developed for a problem, there is little, if any, need for supporting the solution with good managerial judgment and an appreciation for the human factor. F GT Fa
MODERN MANAGEMENT APPROACHES (STUDY QUESTION 4) 79.
An assumption of modern management approaches is that people are complex with multiple needs that change over time. T GT Fa
80.
Modern management approaches focus on systems thinking and contingency thinking, but do not disregard lessons from the classical and behavioural management approaches T GT Fa
81.
Both systems thinking and contingency thinking take the perspective that only one single model or theory applies universally in all situations. F GT Fa
Organizations as Systems 82.
Systems thinking views the organization as a collection of interrelated parts that work together to achieve a common purpose. T KT Fa
83.
A smaller component of a larger system is known as a subsystem. T KT Fa
84.
An open system interacts with its environment in the continual process of transforming resource inputs into outputs. T KT Fa
85.
High performance by the organization as a whole occurs only when each subsystem performs its tasks well and works well in cooperation with other subsystems. T GT Ap
Contingency Thinking 86.
Contingency thinking maintains that there is one best way to manage. F GT Fa
Chapter 2: Management ⎯ Past to Present
47
87.
Contingency thinking involves matching responses to the unique problems and opportunities posed by different situations and by individual and environmental differences. T KT Fa
88.
A structure that works for one organization will always work well in other organizations. F GT Ap
89.
A management approach that works well at one time will always work well in the future. F GT Ap
90.
A management approach that works well in an uncertain environment will not necessarily work well in a stable environment T GT Ap
CONTINUING MANAGEMENT THEMES (STUDY QUESTION 5) 91.
The recognition that we live and work in dynamic and constantly changing environments that put unique and never-ending competitive pressures on organizations is one of the most important insights of accumulated management history. T GT Fa
92.
Ongoing management themes in today’s business environment include quality, performance excellence, and the importance of new leadership, but exclude global awareness, ethics, and social responsibility. F GT Fa
Quality and Performance Excellence 93.
In progressive organizations, managers and workers are quality conscious and they understand the link between competitive advantage and quality. T GT Fa
94.
The value chain is a specific sequence of activities that transforms raw materials into a finished good or service. T KT Fa
95.
Quality must be maintained at each point in the value chain, whether it is performed directly by the organization or is part of network relationships with contractors. T GT Fa
96.
Peters and Waterman’s attributes of performance excellence include a bias toward action, closeness to the customers, autonomy and entrepreneurship, and productivity through people. T MN Fa
48
Schermerhorn & Wright: Management
97.
Peters and Waterman’s attributes of performance excellence include the following: hands-on and value-driven, sticking to the knitting, simple form and lean staff, and simultaneous loose-tight properties. T MN Fa
Global Awareness 98.
Theory Z describes a management framework that incorporates a variety of insights from Japanese management models into North American management practices. T KT Fa
99.
Theory Q is a North American management framework that incorporates Japanese management practices. F GT Fa
100.
Theory Z incorporates Japanese management practices such as the provision of long-term employment, slower promotions and more lateral job movements, attention to career planning and development, and use of consensus decision making. T GT Fa
Learning Organizations 101.
A learning organization is able to continually learn and adapt itself to new experiences. T KT Fa
102.
The core ingredients of learning organizations include mental models, personal mastery, systems thinking, shared vision, and team learning. T GT Fa
103.
Learning organizations make learning continuously available to everyone. T GT Fa
104.
Learning organizations refer to vendors that provide training programs for other organizations. F GT Fa
105.
Learning organizations should emphasize values that focus on information, teamwork, empowerment, participation, and leadership. T GT Fa
21st-Century Leadership 106.
Managers in the 21st century must understand the interconnections among nations, cultures, and economies in the world community as well being able to plan and act with due consideration of them. T GT Fa
107.
Managers in the 21st century must be comfortable with information technology as well as being able to understand and use technological trends advantageously. T GT Fa
Chapter 2: Management ⎯ Past to Present
49
108.
Managers in the 21st century must act ethically, set high ethical standards for others to follow, and build a work culture that values ethics and social responsibility. T GT Fa
109.
Managers in the 21st century must attract highly motivated workers and inspire them by creating high-performance cultures where individuals and teams can do their best work T GT Fa
110.
New managers who expect to survive in today’s dynamic organizations must maintain and upgrade job-relevant skills through a commitment to continuous learning. T GT Fa
111.
Effective 21st century managers must do the “right” things by adding value to the organization’s goods and/or services, making a real difference in performance results, being ethical, and making a real difference in competitive advantage T GT Fa
Multiple Choice Questions CHAPTER INTRODUCTION 112.
Which statement accurately describes the role of management history relative to contemporary management thought? A. Since the world of work and business are changing ⎯ often dramatically in some industries ⎯ managers have little to gain from studying the history of management thought. B. Many modern management concepts have parallels in some of the historical management writings. C. Contemporary managers are not trying to reinvent management practice; rather they are trying to perfect ideas that have deep historical roots. D. A and B. E. B and C. E GT Fa
113.
Which of the following statements is NOT an accurate description of the history of management? A. The history of management can be traced back as far as 5000 B.C. B. Management activities have been important to the development of different civilizations. C. Ideas of specialized tasks and division of labour helped to accelerate industrial change. D. Mass production proved to be of little value in the modern economy. E. Contemporary management thinking continues to develop rapidly. D GT Fa
50
Schermerhorn & Wright: Management
CLASSICAL MANAGEMENT APPROACHES (STUDY QUESTION 1) 114.
The three branches of the classical approach to management are __________. A. Behaviourism, rationalism, and self-actualization. B. Scientific management, administrative principles, and bureaucratic organization. C. Authoritarian, permissive, and homeostatic. D. Economic, modern, and self-actualizing. E. Open, closed, and entropic. B GT Fa
115.
Which of the following statements correctly pairs the classical management approach with its the major contributors? A. The major contributors to scientific management are Frederick Taylor and Max Weber. B. The major contributors to administrative principles are Frank and Lillian Gilbreth C. The major contributors to bureaucratic organization are Henri Fayol and Mary Parker Follett. D. All of the above are correct. E. None of the above is correct. E GT Fa
116.
The view that people will rationally consider available opportunities and do whatever is necessary to achieve the greatest personal economic gain is the underlying assumption of which approach to management thought? A. Quantitative approach. B. Socioeconomic approach. C. Modern approach. D. Classical approach. E. Behavioural approach. D GT Fa
Scientific Management 117.
According to Frederick Taylor, the principal object of management should be __________. A. Profitability. B. Efficiency. C. Achieving the greatest good for society. D. The good of the community. E. Securing maximum prosperity for employer and employee. E GT Fa
118.
Who is known as the father of scientific management? A. Frank Gilbreth. B. Max Weber. C. Henri Fayol. D. Frederick Taylor. E. Henry Mintzberg. D GT Fa
Chapter 2: Management ⎯ Past to Present
51
119.
A follower of Frederick Taylor would be least likely to try to __________. A. Make results-based compensation a performance incentive. B. Select workers with the right abilities to do the job. C. Offer workers proper training. D. Motivate workers by encouraging them to work in small groups. E. Train supervisors to support workers by carefully planning their work. D MN Ap
120.
The practical lessons of scientific management include all of the following EXCEPT: A. Make results-based compensation a performance incentive. B. Select workers with the right abilities to do the job. C. Allow workers to have input into the determination of work methods and performance standards. D. Carefully design jobs with efficient work methods. E. Train supervisors to support workers by carefully planning their work. C MN Ap
121.
__________ refer(s) to a job science that includes careful selection and training of workers along with proper supervisory support. A. Administrative principles. B. Scientific management. C. Contingency theory. D. Self-actualization. E. Fayol’s principles of management. B KT Fa
122.
Which of the following is NOT one of the four principles of scientific management developed by Frederick Taylor? A. Develop a science for every job. B. Carefully select workers with the right abilities for the job. C. Carefully train workers to do the job and provide proper incentives. D. Organize tasks into groups to encourage teamwork. E. Provide management support for workers. D GT Fa
123.
Oxford Industries Inc. installed a new computer system to clock every worker’s pace to a thousandth of a second and to determine each worker’s pay and bonus scale on the basis of his or her performance against the standard. This is an example of __________. A. Administrative principles. B. Scientific management. C. Contingency theory. D. Self-actualization. E. Fayol’s principles of management. B GT Ap
52
Schermerhorn & Wright: Management
124.
__________ is the science of reducing a job or task to its basic physical motions. A. Job design. B. Motion study. C. Workflow analysis. D. Task analysis. E. Role analysis. B KT Fa
125.
__________ pioneered the use of motion studies as a management tool: A. Frederick Herzberg. B. Adam Smith. C. Abraham Maslow. D. Frank and Lillian Gilbreth. E. Mary Parker Follett and James D. Mooney. D GT Fa
126.
The work of Frank and Lillian Gilbreth on motion studies provided the basis for later advances in which of the following management areas? A. Job simplification. B. Incentive wage plans. C. Work standards. D. All of the above. E. None of the above. D GT Fa
127.
United Parcel Service makes use of calibrated productivity standards as well as the timing of package sorting, delivery, and pickup to keep productivity at the highest level per employee. In developing worker productivity standards, UPS obviously makes use of _________. A. Behavioural theories. B. Self-actualization. C. Systems theory. D. Motion studies. E. Administrative principles. D GT Ap
Administrative Principles 128.
Henri Fayol’s __________ closely resemble the __________ that are used in contemporary businesses. A. Three rules of management systems and contingency approaches. B. Administrative principles systems and contingency approaches. C. Five duties of management four functions of management. D. Notions of planning and organizing ideas of command and coordination. E. Principles of collective and social responsibility functions of management. C GT Fa
Chapter 2: Management ⎯ Past to Present
53
129.
According to Henri Fayol, the five rules of management are __________. A. Foresight, organization, command, coordination, and control. B. Authority, responsibility, discipline, remuneration, and initiative. C. Centralization, stability, initiative, communication, and espirit de corps. D. Prediction, hypothesis, observation, experimentation, and verification. E. Standardization, centralization, negative entropy, communication, and homeostasis. A GT Fa
130.
Which of the following statements does NOT provide an accurate description of Henri Fayol’s duties of management? A. To complete a plan of action for the future. B. To provide and mobilize resources to implement the plan. C. To lead, select, and evaluate workers to get the best work toward the plan. D. To ensure that employees fully develop their talents in order to take over managerial tasks. E. To fit diverse efforts together, and ensure information is shared and problems are solved. D GT Fa
131.
Henri Fayol is noted for originating which of the following concepts? A. The scalar chain principle. B. The unity of command principle. C. The unity of direction principle. D. All of the above. E. None of the above. D GT Fa
132.
The __________ principle, as defined by Henri Fayol, states that there should be a clear and unbroken line of communication from top to bottom in the organization’s hierarchy of authority. A. Scalar chain. B. Unity of command. C. Unity of direction. D. Communication control. E. Hawthorne. A GT Fa
133.
The __________ principle, as defined by Henri Fayol, states that each person should receive orders from only one boss. A. Scalar chain. B. Unity of command. C. Unity of direction. D. Management order. E. Organization. B GT Fa
54
Schermerhorn & Wright: Management
134.
The __________ principle, as defined by Henri Fayol, states that one person should be in charge of all activities having the same performance objective. A. Scalar chain. B. Unity of command. C. Unity of direction. D. Classical design. E. Hawthorne. C GT Fa
135.
Mary Parker Follett, a classical management theorist, believed that __________. A. Groups were mechanisms through which diverse individuals could combine their talents for a greater good. B. Organizations are communities in which managers and workers should labour in harmony. C. The manager’s job is to help people in organizations cooperate with one another and achieve an integration of interests. D. All of the above. E. None of the above. D GT Fa
136.
Mary Parker Follett believed that making every employee an owner in the business would create feelings of __________. A. Collective responsibility. B. Stockholder ownership. C. Personal control. D. Individual achievement. E. Corporate sharing. A GT Fa
137.
Mary Parker Follett believed that business problems involve a wide variety of factors that must be considered in relationship to one another. This belief foreshadowed the contemporary management concern with __________. A. Environmental analysis. B. Systems. C. Job design. D. Corporate culture. E. Multiculturalism. B GT Fa
138.
Today’s concerns for managerial ethics and corporate social responsibility were foreshadowed by the classical writings of __________ which argued that businesses were services and that private profits should always be considered in relation to the public good. A. Frederick Taylor. B. Henri Fayol. C. Mary Parker Follett. D. Max Weber. E. Lyndall Urwick. C GT Fa
Chapter 2: Management ⎯ Past to Present
55
Bureaucratic Organization 139.
Which of the following best states the impetus for the development of a bureaucratic organization? A. Max Weber was trying to define the one best way to perform a job. B. Max Weber was attempting to upset German society. C. Max Weber was reacting to the performance deficiencies in organizations of his day. D. Max Weber was attempting to identify a common set of employee needs in German society. E. Max Weber was interested in formulating exact rules of behaviour for German managers. C GT Fa
140.
Max Weber was concerned that people in nineteenth century organizations were in positions of authority due to their __________ rather than their __________. A. Political connections leadership traits. B. Social standing job-related capabilities. C. Leadership qualities job requirements. D. Economic wealth social standing. E. Managerial competence economic wealth. B GT Fa
141.
Max Weber believed that __________ could correct performance deficiencies in late 19th century German organizations. A. A loosely structured system. B. Bureaucracy. C. A contingent organization D. An organic organization. E. An adaptive organization. B GT Fa
142.
_________ is an ideal, intentionally rational, and very efficient form of organization founded on the principles of logic, order, and legitimate authority. A. A democratically structured system. B. A contingent organization C. An organic organization. D. An adaptive organization. E. Bureaucracy. E KT Fa
143.
Which of the following is NOT a characteristic of bureaucratic organizations? A. There is a clear division of labour and work duties and responsibilities are explicitly defined. B. There is a clear hierarchy of authority and each position reports to a higher level one. C. Organizational members are promoted on the basis of their social status. D. Rules and procedures are applied impartially and uniformly. E. Many written rules and procedures are used to guide job activities. C GT Fa
56
Schermerhorn & Wright: Management
144.
Weber’s conception of bureaucratic organizations included all of the following characteristics EXCEPT: A. Clear division of labour. B. Clear hierarchy of authority. C. Formal rules and procedures. D. Impersonality. E. Careers based on social and/or political connections. E GT Fa
145.
Assume that an organization has a clear division of labour, standard rules and procedures, a welldefined hierarchy of authority, members selected for technical competence, and explicitly defined duties and responsibilities. This is an example of __________. A. A closed system. B. An open system. C. A bureaucracy. D. Negative entropy. E. Scientific management. C GT Ap
146.
Efficiency in the utilization of resources and fairness in the treatment of employees and clients are potential advantages of __________. A. A bureaucracy. B. An open system. C. A closed system. D. Scientific management. E. Self-actualization. A GT Fa
147.
Red tape, slowness in handling problems, resistance to change, and employee apathy are disadvantages of which type of organization? A. Closed. B. Complex. C. Administrative D. Conservative E. Bureaucratic. E GT Fa
148.
Which one of the following statements about bureaucracy is true? A. The work of Max Weber is too outdated to be used in the modern science of management. B. The work of Max Weber still has a major impact on the present trends and directions of management. C. The work of Max Weber influenced only European management thinkers. D. Bill Gates bases the operations of Microsoft on Max Weber’s theories of specialization and division of labour. E. Max Weber believed that a bureaucracy was the most rigid and apathetic form of organization. B GT Fa
Chapter 2: Management ⎯ Past to Present 149.
57
Current management trends regarding innovative organizational forms seek to __________. A. Achieve different structural goals than Weber pursued. B. Achieve the same goals as Weber wanted to achieve but with different structural approaches. C. Achieve the same goals as Weber pursued while using similar structural approaches. D. Ignore Weber’s structural goals. E. Create structures that are based on socioeconomic status. B GT Fa
BEHAVIOURAL MANAGEMENT APPROACHES (STUDY QUESTION 2) 150.
The foundations of the behavioural (or human resource) approach to management include all of the following components EXCEPT: A. The Hawthorne Studies. B. Maslow’s theory of human needs. C. McGregor’s Theory X and Theory Y. D. The human systems contingency model. E. Argyris’s theory of personality and organization. D GT Fa
151.
The behavioural (or human resource) approach to management basically assumes that __________. A. People at work will seek satisfying social relationships, respond to group pressures, and search for personal fulfillment. B. Management problems are best solved by qualitative rather than by quantitative analysis. C. People are easily understandable creatures. D. People are completely rational and responsive to economic incentives. E. Environmental reinforcements have little to do with people’s work behaviour. A GT Fa
The Hawthorne Studies and Human Relations 152.
The Hawthorne Studies refer to __________ that was conducted at the Hawthorne Works of the Western Electric Company (predecessor to today’s Lucent Technologies). A. An intensive training program for workers. B. An education program for fast-track managers. C. A research program on technology. D. A research program on management decision-making. E. A research program on individual productivity. E GT Fa
58
Schermerhorn & Wright: Management
153.
Which one of the following statements does NOT accurately describe the illumination experiments of the Hawthorne Studies or one of the experiments conducted in response to the results found in the illumination experiments? A. The researchers expected that better lighting would improve performance. B. The researchers found that performance and level of lighting were unrelated. C. The researchers concluded that these unexpected results were due to unforeseen psychological factors. D. The researchers explored various psychological and social factors in additional experiments. E. The researchers confirmed the direct link between physical conditions of work and individual productivity. E GT Fa
154.
A key conclusion from the Hawthorne relay assembly test room studies was that __________. A. Workers cannot be productive at various levels of illumination. B. Workers are basically rational. C. Workers perform well when they share pleasant social relations with one another and when supervision is participatory. D. Workers are more productive when their pay scale is increased to match their effort. E. Workers are more productive when their work areas are well lighted. C GT Fa
155.
Which of the following statements about the Hawthorne Studies is incorrect? A. The studies were started to identify the influence that “social factors” had on productivity. B. The studies were started to determine the effect that different levels of lighting had on productivity. C. In one study, workers’ productivity increased as the level of illumination at their workstations was decreased. D. The “social setting” of the various experiments influenced the results of the studies. E. People would restrict output to avoid the displeasure of the group, even if it meant sacrificing pay. A GT Fa
156.
The Hawthorne Studies have been criticized for which of the following reasons? A. Poor research design. B. Weak empirical support for the conclusions drawn. C. The tendency of researchers to overgeneralize their findings. D. All of the above. E. None of the above. D GT Fa
157.
The Hawthorne Studies shifted the attention of managers and scholars away from the technical and structural concerns emphasized by the classical management approach and toward __________. A. A more scientific approach to management. B. In-depth studies of actual case histories and individual experiences. C. The use of computers to deal with more complex mathematical models. D. The study of social and human concerns as keys to productivity. E. A Theory X approach to management science. D GT Fa
Chapter 2: Management ⎯ Past to Present
59
158.
__________ showed that people’s feelings, attitudes, and relationships with coworkers should be important to management. A. Scientific management. B. Frank and Lillian Gilbreth. C. The Hawthorne Studies. D. Max Weber. E. Henri Fayol. C GT Fa
159.
The tendency of persons singled out for special attention to perform as predicted just because of expectations created by the situation itself is called __________. A. The Bakersfield method. B. The Engersoll finding. C. The Hawthorne Effect. D. The glass ceiling effect. E. The deficit principle. C KT Fa
160.
The Hawthorne Studies contributed to the emergence of the __________ movement as an important influence on management thought during the 1950s and 1960s. A. Modern relations. B. Human relations. C. Social relations. D. Scientific relations. E. Cultural relations. B GT Fa
161.
__________ was based on the viewpoint that managers who used good human relations in the workplace would achieve productivity. A. Modern relations. B. Social relations. C. Scientific relations. D. Cultural relations. E. Human relations. E KT Fa
162.
The study of individuals and groups in organizations is the social sciences field known as __________. A. Organizational behaviour B. Contingency theory C. Systems theory D. Modern behavioural methods. E. Theory X and Theory Y A KT Fa
60
Schermerhorn & Wright: Management
Maslow’s Theory of Human Needs 163.
Maslow’s work in the area of human needs is important to which area of management thought? A. Classical approach. B. Scientific management. C. Systems theory. D. Human relations movement. E. Contingency theory D GT Fa
164.
A psychological or physiological deficiency that a person feels compelled to satisfy is known as a(n) __________. A. Desire. B. Need. C. Compulsion. D. Obsession. E. Satisfaction deficit. B KT Fa
165.
__________ create tensions that can influence a person’s work attitudes and behaviours. A. Desires. B. Whims. C. Compulsions. D. Obsessions. E. Needs. E GT Fa
166.
Maslow’s hierarchy of needs theory includes which of the following needs? A. Food, shelter, sex, money, and prestige. B. Physiological, spiritual, social, and psychological fulfillment. C. Physical safety, financial security, and social status. D. Physiological, safety, social, esteem, and self-actualization. E. Respect, prestige, recognition, security, and power. D GT Fa
167.
__________ refer to the needs for basic biological maintenance such as food, water, and physical well-being. A. Physiological needs. B. Safety needs. C. Social needs. D. Esteem needs. E. Self-actualization needs. A GT Fa
Chapter 2: Management ⎯ Past to Present
61
168. __________ refer to the needs for security, protection, and stability in the events of daily life. A. Physiological needs. B. Safety needs. C. Social needs. D. Esteem needs. E. Self-actualization needs. B GT Fa 169.
__________ concern the needs for love, affection, and belongingness in one’s relationships with other people. A. Physiological needs. B. Safety needs. C. Social needs. D. Esteem needs. E. Self-actualization needs. C GT Fa
170.
__________ involve the needs for respect, prestige, recognition, and self-esteem; and a personal sense of competency and mastery. A. Physiological needs. B. Safety needs. C. Social needs. D. Esteem needs. E. Self-actualization needs. D GT Fa
171.
__________ include the needs for being self-fulfilled and to grow and use abilities to the fullest and most creative extent. A. Physiological needs. B. Safety needs. C. Social needs. D. Esteem needs. E. Self-actualization needs. E GT Fa
172.
According to the deficit principle of Maslow’s theory of human needs, __________. A. People have a variety of needs, or deficits, that they must satisfy at any given time. B. Each person has different needs. C. People are not motivated by a satisfied need. D. People are always in need of something. E. No matter what their condition in life, all people are looking for basic security. C GT Fa
62
Schermerhorn & Wright: Management
173.
According to the progression principle of Maslow’s theory of human needs, __________. A. The five human needs must all be satisfied before people can progress to self-actualization. B. A need at any level only becomes activated when the next lower-level need has been satisfied. C. The most basic human need is the need for self-actualization. D. Human needs are never truly fulfilled. E. Human needs progress from stronger needs to weaker needs. B GT Fa
174.
At which need level of Maslow’s hierarchy do the deficit and progression principles cease to operate? A. Physiological needs. B. Safety needs. C. Social needs. D. Esteem needs. E. Self-actualization needs. E GT Fa
175.
The more that __________ are satisfied, the stronger they grow. A. Physiological needs. B. Safety needs. C. Social needs. D. Esteem needs. E. Self-actualization needs. E GT Fa
176.
According to Maslow’s theory of human needs, managers can improve worker performance and achieve productivity by __________. A. Eliminating wasted motion. B. Making a science of every job. C. Facilitating need satisfaction. D. Instituting a hierarchical chain of command. E. Listening to workers’ complaints and acting on them. C GT Ap
177.
Wendy is a manger in a nonprofit organization. She is interested in using Maslow’s need hierarchy to guide her approach to managing the volunteers working for this nonprofit organization. In order to promote productivity, Wendy should __________. A. Create jobs that satisfy the needs of the volunteers. B. Create work environments that satisfy the needs of the volunteers. C. Ensure that the work is fulfilling for the volunteers. D. All of the above. E. None of the above. D GT Ap
Chapter 2: Management ⎯ Past to Present
63
McGregor’s Theory X and Theory Y 178.
According to Douglas McGregor, managers should pay more attention to __________. A. Motion studies. B. Social responsibility. C. Behaviour modification techniques. D. Quantitative analysis. E. Social and self-actualization needs. E GT Ap
179.
Theory X managers tend to see their subordinates as __________. A. Creative, responsible, and self-motivated. B. Motivated by challenging work. C. Irresponsible, resistant to change, lacking in ambition, disliking work, and preferring to be led rather than to lead. D. Liking work because they prefer to lead rather than to be led. E. Basically rational. C KT Fa
180.
According to McGregor, Theory Y managers tend to see their subordinates as __________. A. Passive, dependent, and reluctant. B. Irresponsible, resistant to change, lacking in ambition, disliking work, and preferring to be led rather than to lead. C. Willing to work, willing to accept responsibility, capable of self-direction, capable of self-control, imaginative, and creative. D. Disliking work because they prefer to be led rather than to lead. E. Basically rational and motivated by money. C KT Fa
181.
McGregor believed that managers holding either Theory X or Theory Y assumptions could create situations in which employees acted as expected. This phenomenon is known as __________. A. The Hawthorne Effect. B. Theory Z. C. A self-fulfilling prophecy. D. Self-actualization. E. Expectancy theory. C GT Fa
182.
Douglas McGregor would describe managers who tend to be directive in their relationships with others and who take a command-and-control orientation as __________ managers. A. Scientific principles. B. Theory X. C. Theory Y. D. Theory Z. E. Administrative principles. B GT Ap
64
Schermerhorn & Wright: Management
183.
A manager who allows his or her subordinates to participate in decision-making, who delegates authority to them, and who offers them greater job autonomy and job variety would be classified by Douglas McGregor as a __________ manager. A. Democratic. B. Human relations. C. Theory X. D. Theory Y. E. Theory Z. D GT Ap
184.
Which of the following statements does NOT accurately describe Theory Y assumptions? A. Theory Y assumptions are consistent with developments in the new workplace. B. Theory Y assumptions are central to notions of employee participation and involvement. C. Theory Y assumptions devalue workforce diversity. D. Theory Y assumptions provide the foundation for creating a positive self-fulfilling prophecy. E. Theory Y assumptions encourage empowerment and self-management. C GT Ap
Argyris’s Theory of Adult Personality 185.
According to Chris Argyris, certain management principles found in the classical approaches are inconsistent with __________. A. The administrative-principles approach. B. Theory X. C. The mature adult personality. D. Rational principles. E. The findings of quantitative analysis. C GT Fa
186.
According to Chris Argyris, management practices that are influenced by __________ are inconsistent with the mature adult personality. A. Classical management approaches. B. Behavioural management approaches. C. Human resource management approaches. D. Quantitative management approaches. E. Modern management approaches. A GT Fa
187.
Argyris believes that implementation of classical management ideas such as the bureaucratic organization and Fayol’s administrative principles will do all of the following EXCEPT: A. Create conditions for psychological failure among the workers. B. Ensure that workers are productive and efficient. C. Create dependent and passive workers. D. Cause workers to have little sense of control over their work environments. E. Undermine worker performance. B GT Fa
Chapter 2: Management ⎯ Past to Present
65
188.
According to Argyris’s theory of personality and organization, managers who treat people as __________ will achieve __________. A. Dependent workers the highest productivity. B. Dependent workers high profitability. C. Mature and responsible adults mediocre productivity. D. Mature and responsible adults the highest productivity. E. Friendly workers high productivity and profitability. D GT Fa
189.
Argyris believes that absenteeism, turnover, apathy, alienation, and similar behavioural problems in the workplace occur because of __________. A. A mismatch between workers’ mature personalities and management practices. B. Task specialization. C. Theory Y management. D. A lack of situational thinking. E. Poor communication between managers and employees. A GT Fa
QUANTITATIVE MANAGEMENT APPROACHES (STUDY QUESTION 3) 190.
Which of the following statements accurately describe quantitative management approaches? A. Quantitative management approaches developed about the same time as human resource approaches to management. B. Quantitative approaches are based on the assumption that mathematical techniques can be used to improve managerial problem solving. C. Quantitative approaches are increasingly driven by computer technology. D. All of the above statements accurately describe quantitative management approaches. E. None of the above statements accurately describe quantitative management approaches. D GT Fa
Management Science 191.
The scientific application of mathematical techniques to management problems is known as __________. A. Mathematical personality theory. B. Modern management theory. C. Scientific management. D. Management science. E. Problem solving through numbers crunching. D KGT Fa
66
Schermerhorn & Wright: Management
192.
__________ and __________ are often used interchangeably to describe the scientific applications of mathematical techniques to management problems. A. Management research … operations management. B. Systems theory … contingency theory. C. Management science … operations research. D. Management principles … operational principles. E. Modern management themes … computer technology. C GT Fa
193.
The management approach that (a) systematically analyzes a problem, (b) uses appropriate mathematical models to make computations, and (c) selects an optimum solution is known as __________. A. Systems analysis. B. Administrative-principles C. Operations research. D. Mathematical methodology. E. Computational analysis. C GT Fa
194.
Which of the following descriptions of management science applications is NOT accurate? A. Mathematical forecasting helps make future projections that are useful for planning. B. Inventory modeling helps to establish how much to order and when to order. C. Network models break large tasks into smaller components to allow for better analysis, planning, and control of complex projects. D. Linear programming is used to help allocate service personnel or workstations to minimize customer waiting time and service cost. E. Simulation creates models of problems so different solutions under various assumptions can be tested. D GT Fa
195.
Quantitative approaches to management include all of the following characteristics EXCEPT: A. A focus on decision making that has clear implications for management action. B. The use of economic decision criteria. C. The use of managerial rules of thumb that are based on personal experience and personal preferences. D. The use of mathematical models that follow sophisticated rules and formulas. E. A focus on costs, revenues, and return on investment. C GT Fa
Chapter 2: Management ⎯ Past to Present
67
Applied Quantitative Analysis Today 196.
Which of the following is NOT a true statement about quantitative analysis in contemporary business? A. Operations management focuses on applying quantitative management approaches to the production of goods and services. B. The human factor can be ignored when using quantitative management techniques. C. Organizations often employ staff specialists to help managers take advantage of quantitative management approaches. D. Software developments are making quantitative management techniques more accessible to managers. E. Mathematical solutions must be supported by good managerial judgment. B GT Fa
197.
In using any quantitative approach to management, mathematical solutions to problems must be supported by __________. A. Comprehensive computer networks. B. Extensive databases. C. Good managerial judgment and an appreciation of the human factor. D. All of the above. E. None of the above. C GT Ap
MODERN MANAGEMENT APPROACHES (STUDY QUESTION 4) 198.
Modern management approaches maintain that people have multiple and varied needs, that their needs change over time, that they possess many talents and capabilities which can be developed, and that they __________. A. Respond best to Theory X management. B. Respond best when treated as responsible, self-actualizing adults regardless of the demands of the situation. C. Respond best when managers provide different managerial strategies and job opportunities to deal with the individual differences among workers. D. Are very complex and must be managed strictly in all situations. E. Respond best in all situations to the use of participatory management. C GT Fa
199.
One major characteristic of modern management approaches is __________. A. Decision-making must be based solely on economic criteria. B. People are social and self-actualizing, but these characteristics have little impact on people’s work behaviour. C. People are totally rational. D. No one model applies universally in all situations. E. Theory Y management leads to conflict and unhappiness. D GT Fa
68
Schermerhorn & Wright: Management
Organizations as Systems 200.
A __________ is a collection of interrelated parts that function together to achieve a common purpose. A. Contingency. B. System. C. Mathematical model. D. Quantitative structure. E. Need hierarchy. B KT Fa
201.
A smaller component of a larger system is known as __________. A. A subsystem. B. A supersystem. C. A department. D. A team. E. A contingent operation. A KT Fa
202.
A system is defined as open because __________. A. It is permissive in observing the various principles of management. B. Its subsystems do not relate to one another. C. It uses Theory X management assumptions. D. It interacts with its environment in the continual process of transforming resource inputs into outputs. E. It treats its employees as responsible adults. D KT Fa
203.
All of the following are examples of subsystems in the transformation process of a typical organization EXCEPT: A. Purchasing and inventory systems. B. Operations and service management systems. C. Marketing, sales, and distribution systems. D. Trade associations. E. Accounting and financial systems. D GT Ap
204.
High performance by the organization as a whole occurs only when each subsystem __________ and __________. A. Meets minimal standards in performing its tasks works adequately in cooperation with other subsystems. B. Performs its tasks well works well in cooperation with other subsystems. C. Performs its tasks well works adequately in cooperation with other subsystems. D. Has cohesive work teams responds well to higher-level managers. E. Has cohesive work teams works well in cooperation with other subsystems. B GT Ap
Chapter 2: Management ⎯ Past to Present
69
Contingency Thinking 205.
Matching responses to the unique problems and opportunities posed by different situations is called __________. A. Quantitative analysis. B. Rationalism. C. The theory of applicability. D. Contingency thinking. E. Self-actualization. D KT Fa
206.
Matching managerial responses to the problems and opportunities created by individual and environmental differences is the focus of __________. A. Quantitative management. B. Systems analysis. C. Contingency thinking. D. Hierarchical analysis. E. Human resources thinking. C KT Fa
207.
According to contingency theories, __________. A. The best management approach is based on Theory Y assumptions. B. There is no one best management approach. C. The best management approach employs formal mathematical models. D. The best management approach takes human factors into consideration. E. The best management approach focuses on the economic realities of decision making. B GT Fa
208.
A manager is overheard to say: “The best way to manage is to make sure that your response is appropriate to the demands and characteristics of the situation at hand.” His point of view is most closely associated with __________. A. Contingency thinking. B. Closed-systems thinking. C. Human relations thinking. D. Scientific management E. Bureaucracy. A GT Ap
209.
Which of the following statements accurately describe contingency thinking? A. A structure that works for one organization may not work well for another. B. A management approach that works at one time may not work well at another time. C. A management approach that works well in an uncertain environment will not necessarily work well in a stable environment. D. All of the above statements accurately describe contingency thinking. E. None of the above statements accurately describe contingency thinking. D GT Ap
70
Schermerhorn & Wright: Management
CONTINUING MANAGEMENT THEMES (STUDY QUESTION 5) 210.
The recognition that we live and work in dynamic and constantly changing environments that put unique and never-ending competitive pressures on organizations __________. A. Is one of the most important insights of accumulated management history. B. Has been brought to people’s attention solely because of the revolution in information technology. C. Is unlikely to have much long-lasting impact on the way organizations operate. D. A and B. E. B and C. A GT Fa
211.
Ongoing management themes in today’s business environment include all of the following EXCEPT: A. Quality and performance excellence. B. Ethics and social responsibility. C. Global awareness. D. The importance of new leadership. E. Division of labour for efficiency. E GT Fa
Quality and Performance Excellence 212.
Which of the following statements does NOT accurately describe the orientation toward quality in progressive contemporary organizations? A. Managers and workers are quality conscious. B. Managers and workers understand the link between competitive advantage and quality. C. Managers and workers in the best organizational cultures know the one best way to achieve superior product and service quality. D. The best organizational cultures include quality as a core value. E. The best organizational cultures reinforce quality in all aspects of the work environment. C GT Fa
213.
A(n) __________ is a specific sequence of activities that transforms raw materials into a finished good or service. A. Transformational chain. B. Value chain. C. Activities system. D. Materials requirement plan. E. Distribution plan. B KT Fa
Chapter 2: Management ⎯ Past to Present
71
214.
United Gasket and Seal Company manufactures a variety of rubber gaskets and seals for use in the automotive industry. In using a value chain philosophy, United Gasket and Seal would most likely do all of the following EXCEPT: A. Build quality into all aspects of operations. B. Focus on quality issues that relate directly to activities performed by the organization. C. Address quality issues that result from network relationships with contractors. D. Expect the organization’s employees to stress quality in transforming raw materials into a finished good or service. E. De-emphasize the role of product delivery to customers or clients. E GT Ap
215.
Peters and Waterman’s attributes of performance excellence include all of the following EXCEPT: A. A bias toward action. B. Closeness to the customers. C. Closeness of supervision. D. Autonomy and entrepreneurship. E. Productivity through people. C MN Fa
216.
Peters and Waterman’s attributes of performance excellence include all of the following EXCEPT: A. Strategic opportunities. B. Hands-on and value-driven. C. Sticking to the knitting. D. Simple form and lean staff. E. Simultaneous loose-tight properties. A MN Fa
Global Awareness 217.
__________ describes a management framework that incorporates a variety of insights from Japanese management models into North American management practices. A. Theory J. B. Theory Q C. Theory X. D. Theory Y. E. Theory Z. E KT Fa
72
Schermerhorn & Wright: Management
218.
Consider a North American management framework that incorporates Japanese management practices such as providing long term employment, slower promotions and more lateral job movements, attention to career planning and development, use of consensus decision making, and emphasis on the use of groups and employee involvement. This management framework is known as __________. A. Theory X B. Attributes of performance excellence. C. Quality employment D. Theory Z E. The international management theory. D KT Fa
Learning Organizations 219.
A __________ is able to continually learn and adapt itself to new experiences. A. Learning organization. B. Systems organization. C. Change organization. D. Values organization. E. Experience-based organization. A KT Fa
220.
During a job interview, Jim was told by one of the team leaders that the company uses lessons of experience to promote continuous change and improvement. Jim interviewed for a job in which kind of organization? A. A Theory X organization. B. A contingency organization. C. A learning organization. D. A bureaucratic organization. E. A mature organization. C GT Ap
221.
Which of the following is NOT a core ingredient of learning organizations? A. Mental models. B. Personal mastery. C. Systems thinking. D. Shared vision. E. Individual learning. E GT Fa
222.
Which of the following statements provides an incorrect description of learning organizations? A. Learning organizations should emphasize values that focus on information, teamwork, empowerment, participation, and leadership. B. Learning organizations depend on leadership that sets an example for others by embracing change and communicating enthusiasm. C. Learning organizations refer to vendors that provide training programs for other organizations. D. Learning organizations require a value-driven culture. E. Learning organizations make learning continuously available to everyone. C GT Fa
Chapter 2: Management ⎯ Past to Present
73
21st-Century Leadership 223.
According to the text’s discussion of 21st- century leadership, __________ and the new directions of __________ are important keys to personal and organizational performance. A. Leadership … learning organizations. B. Leadership … teamwork. C. Leadership … followership. D. Teamwork … innovative quality management. E. Learning leaders … team organizations. A GT Fa
224.
Managers in the 21st century must be capable of doing all of the following EXCEPT: A. Understanding the interconnections among nations, cultures, and economies in the world community as well as planning and acting with due consideration of them. B. Being comfortable with information technology and understanding and using technological trends advantageously. C. Sacrificing profitability goals for corporate social responsibility commitments. D. Acting ethically, setting high ethical standards for others to follow, and building a work culture that values ethics and social responsibility. E. Attracting highly motivated workers and inspiring them by creating high-performance cultures where individuals and teams can do their best work C GT Fa
225.
New managers who expect to survive in today’s dynamic organizations must be committed to all of the following EXCEPT: A. Pursuing self-interest. B. Maintaining and upgrading job-relevant skills through a commitment to continuous learning. C. Cultivating and using the ability to make things happen. D. Establishing a commitment to work-life balance. E. Understanding international dimensions. A GT Fa
226.
Effective 21st century managers must do the “right” things. Doing the “right” things would include all of the following EXCEPT: A. Do the things that add value to the organizations goods and/or services. B. Do the things that make a real difference in performance results. C. Do the things that are ethical. D. Do the things that make a real difference in competitive advantage E. Do the things that exploit every possible situation within the limits of the law. E GT Fa
74
Schermerhorn & Wright: Management
Essay Questions 227.
Why is the study of historical management theory important for a manager in today’s business environment? Suggested Answer: Today’s managers can draw on management theory to guide their actions; they can learn from the insights of people throughout history who have thought about effective management. By studying the history of management thought, managers can learn from the experiences of others, attempting to capitalize on their successes and avoid their mistakes.
228.
What can be learned from classical management thinking? Suggested Answer: The classical management approaches encompass scientific management, administrative principles, and bureaucratic organization. The basic assumption of the classical management approaches is that people are rational and are primarily driven by economic concerns. The useful lessons from scientific management, as espoused by Frederick Taylor, are: make results-based compensation a performance incentive; carefully design jobs with efficient work methods; carefully select workers with the abilities to do these jobs; train workers to perform the jobs to the best of their abilities; and train supervisors to support workers so they can perform the jobs to the best of their abilities. In addition, the work of Frank and Lillian Gilbreth, also done within the scientific management tradition, provided a foundation for later advances in job simplification, work standards, and incentive wage plans. The contributions of the administrative principles branch of the classical management approach are exemplified by the work of Henri Fayol and Mary Parker Follett. Henri Fayol developed rules and principles of management that served as guides to management practice. His rules of managerial foresight, organization, command, coordination, and control are similar to the modern planning, organizing, leading, and controlling functions of management. Fayol’s scalar chain, unity of command, and unity of direction principles also served to guide management practice. Follett brought an understanding of groups and a deep commitment to human cooperation to her writings about businesses and other organizations. Her insights about groups and human cooperation include the following: groups are mechanisms through which individuals could combine their talents for a greater good; organizations should be viewed as communities in which managers and workers work in harmony; and the manager’s job is to help organization members cooperate with one another and achieve an integration of interests. Follett’s work also anticipated many modern management concepts and practices, including employee ownership, profit sharing, gain-sharing, systems concepts, managerial ethics, and corporate social responsibility. Max Weber viewed bureaucracy as an ideal, intentionally rational, and very efficient form of organization founded on principles of logic, order, and legitimate authority. The characteristics of bureaucratic organizations include the following: a clear division of labour, a clear hierarchy of authority, formal rules and procedures, impersonality, and careers based on merit. Weber believed that by designing and operating organizations as bureaucracies, productivity could be optimized.
Chapter 2: Management ⎯ Past to Present
229.
75
What did the behavioural management (human resource) approaches contribute to management thinking? Suggested Answer: The basic assumption of the behavioural management approaches is that people are social and self-actualizing. These approaches include the Hawthorne studies, Maslow’s theory of human needs, McGregor’s Theory X and Theory Y, and Argyris’s theory of adult personality. The key contribution of the Hawthorne studies is that people’s feelings, attitudes, and relationships with co-workers influence their performance. Maslow’s hierarchy of human needs suggests that managers who can help people satisfy their important needs at work will achieve productivity. Douglas McGregor, the developer of Theory X and Theory Y, argued that managers should devote more attention to people’s social and self-actualizing needs at work. McGregor asserted that managers must shift their perspective from Theory X ⎯ a set of negative assumptions about human behaviour ⎯ to Theory Y ⎯ a set of positive assumptions about human behaviour. McGregor believed that managers who hold either set of assumptions can create self-fulfilling prophecies — that is, through their behaviour they can create situations where subordinates act to confirm the managers’ original expectations. Theory Y assumptions are central to contemporary ideas about employee participation, involvement, empowerment, and self-management. Argyris argued that organizations were too often structured and operated in ways that were incongruous with the needs and characteristics of the adult personality. He maintained that implementation of classical management ideas such as the bureaucratic organization and Fayol’s administrative principles would create conditions for psychological failure among the workers, create dependent and passive workers, cause workers to have little sense of control over their work environments, and undermine worker performance. To have high individual and organizational performance, Argyris advocated transforming organizations so they would be compatible with the capacities and characteristics of the adult personality.
230.
Assume you are a manager working in one of today’s Fortune 500 Companies. Discuss how you would try to influence workers’ motivation using the classical approach to management. How would you try to influence workers’ motivation using the behavioural management approach to management? Suggested Answer: The students should draw on the material in their answers to the preceding two questions to address the applied issue in this question. The students should identify both the ideas they are using and how they are using them. The emphasis should be on the practical application of these ideas.
231.
What is systems thinking? What is contingency thinking? Why are both types of thinking useful for managers in contemporary organizations? Suggested Answer: Systems thinking views organizations as open systems that interact with their environment in a continual process of transforming resource inputs into product outputs. Systems thinking also views the organization as a collection of interrelated parts or subsystems that must
76
Schermerhorn & Wright: Management function together to achieve a common purpose. Each subsystem needs to perform its tasks well and to work well with the other subsystems. Contingency thinking tries to match managerial responses with the problems and opportunities unique to different situations, particularly those posed by individual and environmental differences. Contingency approaches to management assert that there is no one best way to manage. Instead, managers should understand individual and situational differences and respond to them in appropriate ways. Systems thinking and contingency thinking recognize the realities of complex modern organizations and their interplay with dynamic and competitive global environments. Failure to embrace either systems thinking or contingency thinking undermines the effective management and leadership of organizations.
233. Erica is the CEo of a multinational company that is planning to expand into China. Which of the 21st Century manager attributes would be the most important in her job? Suggested Answer: Erica would need to be a global strategist. She needs to understand the interconnections between Canada and China, the cultural differences between Canada and China, and be able to plan with these differences in mind.
Chapter 3:
ETHICAL BEHAVIOUR AND SOCIAL RESPONSIBILITY True/False Questions CHAPTER INTRODUCTION 1.
A failure of ethics was the root cause of bankruptcies and business failures such as Enron, Arthur Andersen, WorldCom, and Bre-X. T GT Ap
2.
Performance goals must always be achieved through ethically and socially responsible actions. T GT Ap
WHAT IS ETHICAL BEHAVIOUR? (STUDY QUESTION 1) 3.
Ethics reflect(s) the code of moral principles that sets standards as to what is “good” versus “bad” or “right” versus “wrong” in people’s conduct, and thereby guides their moral choices and behaviour. T KT Fa
4.
Ethics provides principles that help people in making moral choices among alternative courses of action. T GT Fa
5.
Ethical behaviour refers to what is considered to be “good” or “right” behaviour as opposed to what is “bad” or “wrong” behaviour in the context of the governing moral code. T KT Fa
Laws, Values, and Ethical Behaviour 6.
Living up to the “letter of the law” is a sufficient guarantee that a person’s actions are truly ethical. F GT Ap
7.
Most ethical problems in the workplace arise when people are asked to do or are about to do something that violates their personal beliefs T GT Fa
77
78
Schermerhorn & Wright: Management
8.
Values are the underlying beliefs and attitudes that help determine individual behaviour. T KT Fa
9.
Variation in values among people has little, if any, impact on differences in people’s interpretations of behaviour as being ethical or unethical in a given situation. F GT Fa
10.
Terminal values are preferences regarding the means for accomplishing desired ends. F KT Fa
11.
Instrumental values are preferences regarding desired ends. F KT Fa
12.
Self-respect, freedom, happiness, inner harmony, and family security are examples of terminal values; and courage, imagination, ambition, self-discipline, and honesty are examples of instrumental values. T GT Ap
Alternative Views of Ethics 13.
The utilitarian view of ethical behaviour focuses on treating people impartially and fairly in accordance with guiding rules and standards. F KT Fa
14.
Results-oriented performance criteria are consistent with the utilitarian view of ethics. T KT Ap
15.
The individualism view of ethical behaviour focuses on the pursuit of long-term self-interests. T KT Fa
16.
The individualism view is supposed to promote personal enrichment but in business practice it may actually result in organizational enrichment. F GT Ap
17.
An individual whose ethical behaviour protects and respects the fundamental rights of all human beings is practicing the moral-rights view of ethics. T KT Fa
18.
In contemporary organizations, the moral-rights view concerns the protection of employees with respect to their rights to privacy, due process, free speech, free consent, health and safety, and freedom of conscience. T GT Ap
19.
The justice view of ethical behaviour focuses on treating people impartially and fairly according to guiding rules and standards. T KT Fa
Chapter 3: Ethical Behaviour and Social Responsibility
79
20.
In doing performance appraisals for all of her subordinates, a manager faithfully adheres to the company’s established evaluation procedures for every employee. This manager is acting on the basis of the justice view of ethics. T GT Ap
21.
Procedural justice refers to the degree to which other people are treated with dignity and respect. F KT Fa
22.
The concept of distributive justice concerns the degree to which outcomes are allocated without regard to ethnicity, race, gender, age, or other individual differences criteria. T KT Fa
23.
Interactional justice is the degree to which policies and rules are fairly administered in an organization. F KT Fa
Cultural Issues in Ethical Behaviour 24.
“When in Rome, do as the Romans do” is a classic example of the ethical perspective of cultural relativism. T GT Fa
25.
A person who adopts the perspective of cultural relativism assumes that ethical standards should apply absolutely across cultures and national boundaries. F KT Fa
26.
A manager who operates in a foreign country with the premise that ethical behaviour is always determined by its cultural context is adopting a perspective of universalism. F KT Fa
27.
Ethical imperialism is the attempt to externally impose one’s ethical standards on others. T KT Fa
28.
“Hyper-norms” ⎯ such as human dignity, basic human rights, and good citizenship ⎯ reflect fundamental rights and standards that transcend cultural boundaries. T GT Fa
29.
Keeping a safe workplace; creating a corporate culture that values employees, customers, and suppliers; and producing safe products and services are universal core values that respect human dignity. T MN Fa
30.
Protecting the rights of employees, customers, and communities; and avoiding threats to safety, health, education, and living standards are “good citizen” hyper-norms. F MN Fa
80 31.
Schermerhorn & Wright: Management Hyper-norms that respect basic rights include working with governments and institutions to protect the environment, and supporting social institutions, economic systems, and educational systems. F MN Fa
ETHICS IN THE WORKPLACE (STUDY QUESTION 2) Ethical Dilemmas at Work 32.
An ethical dilemma occurs when someone must choose between a course of action offering personal or organizational benefit or both, but for which there is no clear right or wrong decision. T KT Fa
33.
When some action must be taken but there is not a clear “right” or “wrong” approach, a person is faced with an ethical dilemma. T KT Fa
34.
Ethical dilemmas frequently involve conflicts of interest, issues of customer confidence, or use of organizational resources, but seldom concern discrimination or sexual harassment F GT Ap
35.
A survey of Harvard Business Review subscribers revealed that many ethical dilemmas involve conflicts with superiors, subordinates, and customers. T GT Fa
36.
The results of a Harvard Business Review survey indicated that the ethical issue most frequently encountered by the magazine’s subscribers involved dishonesty in communication with subordinates. F GT Fa
37.
According to a Harvard Business Review survey regarding unethical activities, managers sometimes pressure their subordinates to sign false documents or overlook the boss’s wrongdoing, but they seldom, if ever, pressure their subordinates to support incorrect viewpoints or do business with the boss’s friends. F GT Fa
Rationalizations for Unethical Behaviour 38.
“It’s not really illegal,” “it’s in everyone’s best interests,” “no one will ever know about it,” and “the organization will protect me” are four common rationalizations for unethical conduct. T GT Fa
39.
“Organizational loyalty should not stand above the law and social morality” is good advice for dealing with the rationalization that unethical behaviour is not really illegal. F GT Ap
Chapter 3: Ethical Behaviour and Social Responsibility
81
40.
Looking beyond short-term results to address longer-term implications is a good way to deal with the rationalization that “it’s in everyone’s best interests.” T GT Ap
41.
Making sure that everyone knows wrongdoing will be punished whenever it is discovered is an appropriate method for dealing with the rationalization that “no one will ever know about the unethical behaviour.” T GT Ap
42.
“Since other people and other companies are doing it, you are justified in doing as well” is an appropriate way for dealing with the rationalization that “the organization will stand behind me.” F GT Ap
Factors Influencing Ethical Behaviour 43.
Factors influencing ethical managerial behaviour include the person, the employing organization, and the external environment. T GT Fa
44.
Personal factors such religious values and family influences have little effect on managerial ethics, whereas personal standards and needs have a great deal of impact on managerial ethics F GT Fa
45.
The virtues of honesty, fairness, integrity, and self-respect provide ethical frameworks that help people make correct decisions even when circumstances are ambiguous and situational pressures are difficult. F GT Fa
46.
Ethical anchors are personal rules or strategies for ethical decision making. F GT Fa
47.
Organization factors that affect the ethical behaviour of managers include reward and punishment practices as well as formal policy statements and written rules. T GT Fa
48.
The behaviour of supervisors and the expectations of peers are organizational factors that influence ethical behaviour. T GT Fa
49.
Environmental factors that affect the ethical standards of an organization and its employees include social norms and values, competition within an industry, and governmental laws and regulations. T GT Fa
50.
The Sarbanes-Oxley Act created the mechanism for governmental supervision of the liquidation of Enron and Arthur Andersen. In Canada, the legislation is called The Canadian Securities Exchange Commission. F GT Fa
82
Schermerhorn & Wright: Management
MAINTAINING HIGH ETHICAL STANDARDS (SYUDY QUESTION 3) 51.
Ethics training, whistleblower protection, ethical role models, and codes of ethical conduct are methods for maintaining high ethical standards in organizations. T GT Fa
52.
Ethics training, whistleblower protection, strong ethical cultures, formal codes of ethics, and top management support are ways of implementing ethical imperialism. F GT Fa
Ethics Training 53.
Ethics training is a structured program that is designed to help people understand ethical aspects of decision making and to incorporate high ethical standards into daily behaviour. T KT Fa
54.
Exposure to a multi-step process for dealing with ethical dilemmas is an appropriate component of an ethics training program. T G Fa
55.
Recognizing the ethical dilemma, getting the facts, identifying your options, testing each option, deciding which option to follow, double-checking your decisions by asking “spotlight” questions, and taking action are the seven sequential steps in the checklist for dealing with ethical dilemmas. T MN Fa
56.
According to the text, an important way for double-checking the ethics of a decision is to ask: “How would I feel if my family found out about my decision?” and “How would I feel about this if my decision were printed in the local newspaper?” T MN Fa
Whistleblower Protection 57.
A whistleblower is a person who exposes the misdeeds of others in an attempt to divert attention from his or her own unethical behaviour. F KT Fa
58.
A whistleblower is someone who exposes the misdeeds of others in an organization in an attempt to preserve ethical standards and protect against wasteful, harmful, or illegal acts. T KT Fa
59.
Impaired career progress and various retaliatory actions, up to and including termination, are among the potential risks faced by people who act as whistleblowers. T GT Ap
60.
Organizational barriers to whistleblowing include a strict chain of command, strong work group identities, and ambiguous priorities. T GT Fa
Chapter 3: Ethical Behaviour and Social Responsibility 61.
83
A moral quality circle helps to create shared commitments for everyone to work at their moral best. T GT Fa
Ethical Role Models 62.
To set the proper ethical tone for the organization, top management should communicate expectations for ethical behaviour throughout the organization, reinforce ethical behaviour, and be role models of ethical behaviour. T GT Fa
63.
Only top management needs to act as ethical role models. F GT Fa
64.
Part of a manager’s ethical responsibility is to be realistic in setting performance targets for others. T GT Ap
65.
Unethical behaviour seldom occurs as a result of excessive pressure by management for the accomplishment of very difficult or complex goals. F GT Ap
Codes of Ethical Conduct 66.
A code of ethics is a formal statement of an organization’s values and ethical principles that provide guidelines on how to behave in situations susceptible to ethical dilemmas. T KT Fa
67.
Codes of ethics may identify expected behaviours in terms of general organizational citizenship, the avoidance of illegal or improper employee behaviour, and customer relations. T GT Fa
68.
Formal codes of ethics are usually concerned with expressing how employees may be expected to behave in terms of customer-supplier relationships, political contributions, confidentiality of corporate information, and response to bribes and kickbacks. T GT Fa
69.
Codes of ethical conduct can guarantee ethical conduct. F GT Ap
70.
The value of an ethics code relies on the organization’s underlying human resource foundation. T GT Ap
71.
Ethical codes are not useful is large, complex organizations. F GT Ap
72.
Ethical codes are not replacements for hiring people of integrity, nor are they replacements for leadership that is committed to being positive role models for the rest of the organization’s members. T GT Ap
84
Schermerhorn & Wright: Management
CORPORATE SOCIAL RESPONSIBILITY (STUDY QUESTION 4) 73.
Corporate social responsibility is an organization’s obligation to act in ways that serve its own interests as well as the interests of society at large. T KT Fa
Stakeholder Issues and Analysis 74.
Organizational stakeholders are the persons, groups, and other organizations directly affected by the behaviour of an organization and holding a stake in its performance. T KT Fa
75.
Key organizational stakeholders include owners, employees, customers, and suppliers, but not competitors, interest groups, or regulators. F KT Fa
76.
Realizing performance gains and efficiencies by exploiting the natural environment is an appropriate leadership belief for guiding socially responsible organizational practices. F GT Fa
77.
The leadership beliefs that guide socially responsible organizational practices focus on people, communities, the natural environment, and reputation. T GT Fa
Perspectives on Corporate Social Responsibility 78.
The classical view of social responsibility maintains that the organization must be concerned with the broader social welfare and not just with corporate profits. F GT Fa
79.
According to its opponents, corporate social responsibility will raise business costs, reduce business profits, dilute the purpose of business, and give business too much social power. T GT Ap
80.
The socioeconomic view of social responsibility holds that management’s only responsibility in managing a business is to maximize profits. F GT Fa
81.
Advocates of corporate social responsibility assert that businesses have the resources and obligation to act in socially responsible ways, and that it decreases the need for restrictive government regulation, improves the public image of business, and may improve or determine long-run profits. T GT Ap
82.
Corporate social responsibility will very likely have an adverse impact on the financial performance of businesses. F GT Ap
Chapter 3: Ethical Behaviour and Social Responsibility
85
83.
The virtuous circle refers to the situation in which corporate social responsibility leads to improved financial performance and this, in turn, leads to additional socially responsible actions. T GT Fa
84.
The public increasingly expects that business organizations will act with genuine social responsibility. T GT Ap
Evaluating Corporate Social Performance 85.
A social responsibility audit is a systematic assessment and reporting of an organization’s accomplishments in various areas of corporate social responsibility. T KT Fa
86.
A social responsibility audit is a systematic assessment of the corporation’s impact on its employees’ social lives in relation to work-life balance. F KT Fa
87.
When corporate social performance focuses on acting to avoid adverse consequences, the company’s actions are driven by commitment. F GT Fa
88.
When corporate social performance focuses on acting to create positive impact, the company’s actions are driven by compliance. F GT Fa
89.
A firm is meeting its economic responsibility when it earns a profit by providing goods and services that are desired by customers. T GT Fa
90.
A firm is meeting its legal responsibility when it voluntarily conforms to legal as well as broader values and moral expectations of society. F GT Fa
91.
An organization is meeting its ethical responsibility when it is in compliance with the law and requirements of various external regulations. F GT Fa
92.
Discretionary responsibility occurs when an organization voluntarily moves beyond basic economic, legal, and ethical expectations to provide leadership in advancing the well-being of individuals, communities, and society as a whole. T GT Fa
93.
The highest level of social performance comes through the satisfaction of an organization’s ethical responsibility. F GT Fa
86
Schermerhorn & Wright: Management
94.
The obstructionist, defensive, accommodative, and proactive strategies reflect different degrees of commitment by organizations to the economic, legal, ethical, and discretionary criteria for evaluating social performance. T GT Fa
95.
The obstructionist strategy involves a corporate social responsibility commitment that reflects mainly economic concerns and meets the organization’s economic responsibility. T KT Fa
96.
The defensive strategy involves a corporate social responsibility commitment that meets economic and legal responsibilities, and seeks to protect the organization by doing the minimum legally required to satisfy expectations. T KT Fa
97.
An organization that is pursuing an accommodative social responsibility strategy would likely do the minimum ethically required to satisfy economic, legal, and ethical criteria. T KT Fa
98.
An organization that is following a proactive social responsibility strategy would both take preventive action to avoid adverse social impacts from company activities and take a leadership role in identifying and responding to emerging social issues, thereby satisfying economic, legal, ethical, and discretionary responsibilities. T KT Fa
ORGANIZATIONS AND SOCIETY (STUDY QUESTION 5) 99.
The Canadian government does not take an active role in regulating business affairs when organizations act irresponsibly. F GT Fa
How Governments Influence Organizations 100.
From an ethical and social responsibility perspective, governmental agencies have the primary responsibility of monitoring and ensuring that businesses comply with legislative mandates. T GT Fa
101.
Government takes an active role in regulating business affairs in Canada with respect to environmental protection, consumer protection, occupational health and safety, and fair labour practices. T GT Fa
102.
The Canadian government takes an active role in regulating business by focusing on occupational safety and health when it forces businesses to withdraw from sale any products that are hazardous to consumers. F GT Ap
Chapter 3: Ethical Behaviour and Social Responsibility
87
103.
When the Canadian government takes an active role in regulating business through fair labour practices, it enforces laws to prohibit employment discrimination. T GT Ap
104.
The Canadian government takes an active role in regulating business affairs concerning consumer protection when it enforces regulations to encourage clean air. F GT Ap
105.
The Canadian government takes an active role in regulating business affairs concerning environmental protection when it discourages product dumping and unfair competitive practices. F GT Ap
How Organizations Influence Governments 106.
Political action committees enable executives to get to know important people in government and try to gain their support for special interests. F GT Fa
107.
Public relations campaigns allow executives to communicate positive images of their organizations to the public at large. T GT Fa
108.
Executives use lobbying to directly communicate their positions and preferences to government officials. T KT Fa
109.
Personal networks and illegal acts enable executives to appropriately exert influence through financial support for favored political candidates. F KT Fa
110.
Offering bribes in an attempt to gain influence over public officials through is an acceptable use of political action committees and lobbying. F GT Fa
Role of Corporate Governance 111.
Corporate governance refers to a board of directors providing oversight of the top management of an organization. T KT Fa
112.
Corporate governance typically involves hiring, firing, and compensating the chief executive officer (CEO); assessing strategy; and verifying financial records. T GT Ap
113.
The effectiveness of corporate governance has been criticized because ethical failures and scandals have raised concerns about executives’ commitment to corporate social responsibility. T GT Ap
88
Schermerhorn & Wright: Management
114.
Corporate governance has been criticized for paying chief executive officers large sums of money and, in some cases, for doing so even when their companies perform poorly. T GT Ap
115.
Today’s’ workers and managers need not accept personal responsibility for doing the “right” things. F GT Ap
116.
The reality facing managers in contemporary organizations is that they are responsible for attaining high performance along with high ethical standards and social responsibility. T GT Ap
Multiple Choice Questions CHAPTER INTRODUCTION 117.
__________ was the root cause of bankruptcies and business failures such as Enron, Arthur Andersen, WorldCom and Bre-X. A. A failure of ethics. B. Autocratic leadership. C. Poor customer service. D. B and C. E. A, B, and C. A GT Ap
118.
Performance goals must always be achieved through __________. A. Any means possible. B. Exploitation of environmental resources. C. Ethically and socially responsible actions. D. Governmental subsidies. E. Marginalizing human resources. C GT Ap
WHAT IS ETHICAL BEHAVIOUR? (STUDY QUESTION 1) 119.
Which of the following statements does NOT provide an accurate description of ethics? A. Ethics is the code of moral principles that sets standards of “good” versus “bad” or “right” versus “wrong.” B. Ethics provide principles to guide the behaviour of individuals. C. Ethics provide principles to guide the behaviour of groups. D. Ethics is a set of principles that guide the organization’s analysis of its external environment and the formulation of actions to respond to that environment. E. Ethics provides principles that help people in making moral choices among alternative courses of action. D GT Fa
Chapter 3: Ethical Behaviour and Social Responsibility
120.
89
__________ reflect(s) the code of moral principles that sets standards as to what is “good” versus “bad” or “right” versus “wrong” in people’s conduct, and thereby guides their moral choices and behaviour. A. Group norms. B. Legal behaviour. C. Ethics. D. Civil law. E. Humanistic behaviour. C KT Fa
121.
According to the textbook, ethical behaviour is __________. A. The same as legal behaviour in the context of business. B. Interpreted outside the legal frame of reference. C. What is accepted as “good” or “right’ as opposed to “bad” or “wrong” in the context of the governing moral code. D. All of the above. E. None of the above. C KT Fa
Laws, Values, and Ethical Behaviour 122
Which statement accurately describes the relationship between law and ethics? A. Even though an action is legal, it may not be ethical. B. An action that is not illegal is without question an ethical action. C. Living up to the “letter of the law” is a sufficient guarantee that a person’s actions are truly ethical. D. A and C. E. B and C. A GT Ap
123.
Most ethical problems in the workplace arise when people are asked to do or are about to do something that __________. A. Is illegal. B. Goes against work group standards. C. Violates their personal beliefs. D. Violates the organization’s policies. E. Violates social norms. C GT Fa
124.
The underlying beliefs and attitudes that help determine behaviour are referred to as __________. A. Values. B. Ethics. C. Morals. D. Personal standards. E. Social norms. A KT Fa
90
Schermerhorn & Wright: Management
125.
To the extent that __________ vary among people, we can expect different interpretations of what behaviour is ethical or unethical in a given situation. A. Laws. B. Values. C. Needs. D. Perceptions. E. Motives. B GT Fa
126.
__________ are preferences regarding desired ends. A. Ethical values. B. Utilitarian values. C. Instrumental values. D. Social values. E. Terminal values. E KT Fa
127.
Self-respect, freedom, happiness, inner harmony, and family security are examples of __________ that managers consider to be important. A. Moral values. B. Socialistic values. C. Terminal values. D. Instrumental values. E. Bureaucratic values. C GT Ap
128.
__________ are preferences regarding the means for accomplishing desired ends. A. Ethical values. B. Utilitarian values. C. Terminal values. D. Instrumental values. E. Social values. D KT Fa
129.
Courage, imagination, ambition, self-discipline, and honesty are examples of __________ that managers consider to be important. A. Instrumental values. B. Moral values. C. Socialistic values. D. Terminal values. E. Bureaucratic values. A GT Ap
Chapter 3: Ethical Behaviour and Social Responsibility
91
Alternative Views of Ethics 130.
The utilitarian view of ethical behaviour is that which __________. A. Provides the greatest good for the greatest number of people. B. Respects and protects the individual’s fundamental rights. C. Ensures that people are treated impartially and fairly. D. Advances the pursuit of long-term self-interests. E. Ensures the resolution of personal moral dilemmas. A KT Fa
131.
The main emphasis of the utilitarian view of ethical behaviour is __________. A. Assessing the implications of a decision in terms of its long-term personal consequences. B. Promoting honesty and integrity. C. Ensuring that people’s rights are protected and respected. D. Evaluating a decision on the basis of its impartiality and fairness. E. Ensuring that the greatest number of people benefit to the greatest extent possible. E KT Fa
132.
Using results-oriented performance criteria to judge what is best for most people in a business organization is an application of which view of ethical behaviour? A. The utilitarian view. B. The individualism view. C. The collectivism view. D. The moral-rights view. E. The justice view. A GT Ap
133.
The individualism view of ethical behaviour is that which __________. A. Provides the greatest good for the greatest number of people. B. Respects and protects the individual’s fundamental rights. C. Ensures that people are treated impartially and fairly. D. Advances the pursuit of long-term self-interests. E. Ensures the resolution of personal moral dilemmas. D KT Fa
134.
The main emphasis of the individualism view of ethical behaviour is __________. A. Assessing the implications of a decision in terms of its long-term personal consequences. B. Promoting honesty and integrity. C. Ensuring that people’s rights are protected and respected. D. Evaluating a decision on the basis of its impartiality and fairness. E. Ensuring that the greatest number of people benefit to the greatest extent possible. A KT Fa
92
Schermerhorn & Wright: Management
135.
The individualism view is supposed to promote __________ but in business practice it may result in __________. A. Personal enrichment organizational enrichment. B. Honesty and integrity pushing the law to its outer limits. C. Narcissism procedural justice. D. Running roughshod over other people to achieve personal objectives honesty and integrity. E. Pushing the law to its outer limits interactional justice. B GT Ap
136.
The moral-rights view of ethical behaviour is that which __________. A. Provides the greatest good for the greatest number of people. B. Respects and protects the individual’s fundamental rights. C. Ensures that people are treated impartially and fairly. D. Advances the pursuit of long-term self-interests. E. Ensures the resolution of personal moral dilemmas. B KT Fa
137.
The main emphasis of the moral-rights view of ethical behaviour is __________. A. Assessing the implications of a decision in terms of its long-term personal consequences. B. Promoting honesty and integrity. C. Ensuring that people’s rights are protected and respected. D. Evaluating a decision on the basis of its impartiality and fairness. E. Ensuring that the greatest number of people benefit to the greatest extent possible. C KT Fa
138.
In contemporary organizations, __________ concerns the protection of employees with respect to their rights to privacy, due process, free speech, free consent, health and safety, and freedom of conscience. A. The utilitarian view. B. The individualism view. C. The collectivism view. D. The moral-rights view. E. The justice view. D GT Ap
139.
The justice view of ethical behaviour is that which __________. A. Provides the greatest good for the greatest number of people. B. Respects and protects the individual’s fundamental rights. C. Ensures that people are treated impartially and fairly. D. Advances the pursuit of long-term self-interests. E. Ensures the resolution of personal moral dilemmas. C KT Fa
Chapter 3: Ethical Behaviour and Social Responsibility
93
140.
The main emphasis of the justice view of ethical behaviour is __________. A. Assessing the implications of a decision in terms of its long-term personal consequences. B. Promoting honesty and integrity. C. Ensuring that people’s rights are protected and respected. D. Evaluating a decision on the basis of its impartiality and fairness. E. Ensuring that the greatest number of people benefit to the greatest extent possible. D KT Fa
141.
Suppose that a professor’s main concern in grading term papers is to evaluate all papers and assign grades fairly and objectively in light of the requirements and grading scale contained in the course syllabus. From an ethics perspective, this is an example of the professor adopting which of the following views? A. The utilitarian view. B. The individualism view. C. The collectivism view. D. The moral-rights view. E. The justice view. E GT Ap
142.
The degree to which policies and rules are fairly administered in an organization is known as __________. A. Distributive justice. B. Moral justice. C. Ethical management. D. Procedural justice. E. Equitable policy. D KT Fa
143.
Not taking sexual harassment allegations against top management as seriously as allegations against lower-level supervisors is an example of violating the principle of __________. A. Distributive justice. B. Moral justice. C. Ethical management. D. Procedural justice. E. Equitable policy. D GT Ap
144.
The degree to which outcomes are allocated without regard to ethnicity, race, gender, age, or other individual differences criteria is the concept of __________. A. Distributive justice. B. Moral justice. C. Ethical management. D. Procedural justice. E. Equitable policy. A KT Fa
94
Schermerhorn & Wright: Management
145.
If a woman and a man have equivalent qualifications and experience and are given the same consideration for promotion, __________ is being applied. A. Distributive justice. B. Moral justice. C. Ethical management. D. Procedural justice. E. Equitable policy. A GT Ap
146.
The degree to which other people are treated with dignity and respect deals with the issue of __________. A. Utilitarianism. B. Individualism. C. Procedural justice. D. Distributive justice. E. Interactional justice. E KT Fa
147.
Michele, a bank officer, takes the time to fully explain to an applicant why he is being turned down for a loan and does her best to answer all the applicant’s questions without being demeaning toward him in any way. Michele is reflecting the ethical concern of __________ in her behaviour. A. Moral rights. B. Distributive justice. C. Interactional justice. D. Utilitarianism. E. Individualism. C GT Ap
Cultural Issues in Ethical Behaviour 148.
A manager who operates in a foreign country with the premise that ethical behaviour is always determined by its cultural context is adopting a perspective of __________. A. Cultural activism. B. Cultural relativism. C. Ethical imperialism. D. Cultural socialism. E. Ethical realism. B KT Fa
149.
An executive who assumes that ethical standards should apply absolutely across cultures and national boundaries is operating under which cultural perspective? A. Cultural activism. B. Cultural relativism. C. Ethical universalism. D. Cultural socialism. E. Ethical realism. C KT Fa
Chapter 3: Ethical Behaviour and Social Responsibility
95
150.
Critics charge that __________ is a form of __________, or the attempt to externally impose one’s ethical standards on others. A. Cultural relativism cultural universalism. B. Universalism ethical imperialism. C. Cultural relativism ethical imperialism. D. Ethical imperialism cultural relativism. E. Ethical imperialism Romanesque law B KT Fa
151.
Core values or “hyper-norms” that transcend cultural boundaries focus on __________. A. Human dignity. B. Basic rights. C. Good citizenship. D. All of the above. E. None of the above. D GT Fa
152.
Creating a corporate culture that values employees, customers, and suppliers is a core value that __________. A. Respects basic rights. B. Promotes good citizenship. C. Enhances social concerns. D. Respects human dignity. E. Respects stakeholder interests. D MN Fa
153.
Which of the following does NOT accurately describe of the universal values of respect for human dignity or respect for basic rights? A. Keeping a safe workplace. B. Producing safe goods and services. C. Supporting social institutions, including economic and educational systems. D. Protecting the rights of employees and customers. E. Avoiding anything that threatens people’s education and living standards. C MN Fa
ETHICS IN THE WORKPLACE (STUDY QUESTION 2) Ethical Dilemmas at Work 154.
An ethical dilemma __________. A. Is rare among managers. B. Is resolved in most organizations by a formal code of ethics. C. Always involves pressures to commit illegal acts. D. Can usually be resolved without much personal stress. E. Occurs when someone must choose between a course of action offering personal or organizational benefit or both, but for which there is no clear right or wrong decision. E KT Fa
96
Schermerhorn & Wright: Management
155.
When some action must be taken but there is not a clear “right” or “wrong” approach, a person is faced with a(n) __________. A. Moral pinch. B. Ethical dilemma. C. Managerial decision. D. Situation to avoid. E. Lawsuit. B KT Fa
156.
Suppose that a manager denies a candidate a promotion or job appointment because of the candidate’s race, religion, gender, age, or other criteria that are not relevant to the job. This manager may get caught in an ethical dilemma involving __________. A. Discrimination. B. Sexual harassment. C. Conflicts of interest. D. Customer confidence. E. Organizational resources. A GT Ap
157.
If a manager makes a co-worker feel uncomfortable because of inappropriate comments or actions regarding sexuality, the manager may get caught in an ethical dilemma involving __________. A. Discrimination. B. Sexual harassment. C. Conflicts of interest. D. Customer confidence. E. Organizational resources. B GT Ap
158.
Ethical dilemmas in the form of __________ may occur where a manager takes a bribe or kickback or extraordinary gift in return for making a decision favorable to the gift giver. A. Discrimination. B. Sexual harassment. C. Conflicts of interest. D. Customer confidence. E. Organizational resources. C GT Ap
159.
Ethical dilemmas in the form of __________ may occur where a manager has privileged information regarding the activities of a customer and shares that information with another party. A. Discrimination. B. Sexual harassment. C. Conflicts of interest. D. Customer confidence. E. Organizational resources. D GT Ap
Chapter 3: Ethical Behaviour and Social Responsibility
97
160.
Managers who use official stationery or company e-mail accounts to communicate personal opinions or requests to community organizations are engaging in acts that may be considered to constitute an ethical dilemma regarding __________. A. Discrimination. B. Sexual harassment. C. Conflicts of interest. D. Customer confidence. E. Organizational resources. E GT Ap
161.
A survey of Harvard Business Review subscribers revealed that many ethical dilemmas involve conflicts with __________. A. Superiors. B. Subordinates. C. Customers. D. All of the above. E. None of the above. D GT Fa
162.
The results of a Harvard Business Review survey indicated that the ethical issues most frequently encountered by the magazine’s subscribers involved all but which one of the following? A. Dishonesty in advertising. B. Dishonesty in communication with top management. C. Dishonesty in communication with subordinates. D. Dishonesty in communication with clients. E. Dishonesty in communication with government agencies. C GT Fa
163.
The text reports that managers sometimes pressure their subordinates to engage in various unethical activities. Which of the following in NOT one of these unethical activities? A. Overlooking the boss’s wrongdoings. B. Signing false documents. C. Supporting incorrect viewpoints. D. Doing business with the boss’s friends. E. Doing personal favors for the boss. E GT Fa
Rationalizations for Unethical Behaviour 164.
The text identifies four rationalizations that are commonly used to justify unethical conduct. Which of the following is NOT one of the four rationalizations? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. The organization will protect me. E. Everybody does it. E GT Fa
98
Schermerhorn & Wright: Management
165.
In submitting her expense report for a recent business trip, Shirley sought reimbursement for some personal entertainment expenses. Knowing that the company policy precluded such reimbursement, she reported higher amounts for taxi fares and tips than she actually spent. Which of the following rationalizations most likely applies to Shirley’s actions? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. Alternative A and B. E. Alternative B and C. C GT Ap
166.
The text identifies different ways of dealing with the four rationalizations that are commonly used to justify unethical behaviour. Which one of the following courses of action is NOT a recommended way for dealing with at least one of the four rationalizations? A. When in doubt about a decision to be made or an action to be taken, don’t do it. B. If other people and other companies are doing it, you are justified in doing it too. C. Look beyond the short-term results to address longer-term implications. D. Make sure everyone knows that wrongdoing will be punished whenever it is discovered. E. Organizational loyalty should not stand above the law and social morality. B GT Ap
167.
Which of the following rationalizations for unethical behaviour reflects the mistaken belief that one’s behaviour is acceptable, especially in ambiguous situations? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. The organization will protect me. E. Everybody does it. A GT Fa
168.
Which of the following rationalizations for unethical behaviour reflects the mistaken belief that because someone can be found to benefit from the behaviour, the behaviour is also in the organization’s best interests? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. The organization will protect me. E. Everybody does it. B GT Fa
169.
Which of the following rationalizations for unethical behaviour reflects the mistaken belief that a questionable behaviour is really “safe” and will never be discovered or made public? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. The organization will protect me. E. Everybody does it. C GT Fa
Chapter 3: Ethical Behaviour and Social Responsibility 170.
99
Which of the following rationalizations for unethical behaviour reflects the mistaken belief that the organization’s best interests stand above all others? A. It’s not really illegal. B. It’s in everyone’s best interests. C. No one will ever know about it. D. The organization will protect me. E. Everybody does it. D GT Fa
Factors Influencing Ethical Behaviour 171.
Factors influencing ethical managerial behaviour include which of the following? A. The employing organization. B. The person. C. The external environment. D. All of the above. E. None of the above. D GT Fa
172.
Person factors that help determine managerial ethics include all of the following EXCEPT: A. Religious values. B. Personal financial needs. C. Family influences. D. Behaviour of peers. E. Personal standards. D GT Fa
173.
__________ are personal rules or strategies for ethical decision making. A. Ethical frameworks. B. Distributive justice. C. Ethical dilemmas. D. Ethical anchors. E. Procedural justice. A GT Fa
174.
The virtues of honesty, fairness, integrity, and self-respect provide __________ that help people make correct decisions even when circumstances are ambiguous and situational pressures are difficult. A. Procedural justice. B. Ethical frameworks. C. Distributive justice. D. Ethical dilemmas. E. Ethical anchors. E GT Fa
100
Schermerhorn & Wright: Management
175.
In a commencement address, Ivan Boesky said, “Greed is healthy. You can be greedy and still feel good about yourself.” This is an example of the __________ factor influencing ethical behaviour. A. Social. B. Organization. C. Person. D. Corporate. E. Environment. C GT Ap
176.
The behaviour of supervisors and the expectations of peers are __________ factors that influence ethical behaviour. A. Social. B. Organization. C. Person. D. Corporate. E. Environment. B GT Fa
177.
Anita Roddick's 11-point charter on ethical conduct at the Body Shop International is an example of the influence of __________ on ethical behaviour. A. Religious values. B. Government regulation. C. Personal standards and needs. D. Formal policies of the employing organization. E. Behaviour of peers and supervisors. D GT Ap
178.
Environmental factors that affect the ethical standards of an organization and its employees include __________. A. Social norms and values. B. Competition within an industry. C. Governmental laws and regulations. D. All of the above. E. None of the above. D GT Fa
179.
Which of the following statements about the Sarbanes-Oxley Act of 2002 is/are true? A. The Sarbanes-Oxley Act created the Public Company Accounting Oversight Board and set a new audit-reporting standard. B. The Sarbanes-Oxley Act created the mechanism for governmental supervision of the liquidation of Enron and Arthur Andersen. C. The Sarbanes-Oxley Act makes it easier for corporate executives to be tried and sentenced to jail for financial misconduct. D. A and B. E. A and C. E GT Fa
Chapter 3: Ethical Behaviour and Social Responsibility 180.
101
Former American Airlines president Robert Crandall contacted Howard Putnam, then president of now-defunct Braniff Airlines, to discuss raising airfares on their competing money-losing routes. The U.S. Justice Department alleged this was an illegal attempt to monopolize airline routes. The action by the Department of Justice is an example of the __________ factor influencing managers’ ethical behaviour. A. Person. B. Organization. C. Environment. D. A and B. E. B and C. C GT Ap
MAINTAINING HIGH ETHICAL STANDARDS (STUDY QUESTION 3) 181.
According to the text, all of the following are ways of maintaining high ethical standards in management EXCEPT: A. Media coverage of unethical acts. B. Ethics training. C. Whistleblower protection. D. Top management support. E. Codes of ethical conduct. A GT Fa
182.
Ethics training, whistleblower protection, strong ethical cultures, formal codes of ethics, and top management support are ways of __________. A. Rationalizing unethical behaviour. B. Maintaining high ethical standards. C. Implementing ethical imperialism. D. A and B. E. B and C. B GT Fa
Ethics Training 183.
Ethics training refers to __________. A. Structured programs to help participants understand the ethical aspects of decision making, and how to incorporate ethical standards into their daily lives. B. Teaching corporate outlines for formal corporate codes of ethics. C. Training on the laws under which “white collar” criminals are prosecuted. D. Learning about corporate guidelines for supplier conduct. E. Exposure to governmental regulations for defense contractors in the United States. A GT Fa
102
Schermerhorn & Wright: Management
184.
Ethics training should be designed to __________. A. Help people deal with ethical issues while under pressure. B. Help people incorporate ethical standards into their daily work behaviour. C. Help people to have the moral courage to do what is right. D. A and B. E. A and C. D GT Fa
185.
Which of the following is NOT a step that managers can follow for making ethical decisions? A. Recognize the ethical dilemma. B. Identify your options. C. Model what others are doing. D. Double-check your decisions by asking follow-up questions. E. Take action. C MN Fa
186.
According to the text, an important way for double-checking the ethics of a decision is to ask which one of the following questions? A. How would I feel about this decision if it made a lot of money for the company? B. How would I feel if I received a large bonus a result of making this decision? C. How would I feel if this decision harmed someone? D. How would I feel if a competitor lost business as a result of this decision? E. How would I feel if my family found out about my decision? E MN Fa
187.
According to the text, an important way to test whether a decision is consistent with one’s personal ethical standards is by asking which of the following questions? A. How would I feel about this if my decision were printed in the local newspaper? B. How would I feel if this decision harmed someone? C. How would I feel if my employer lost a lot of money as a result of this decision? D. All of these questions are important ways of testing the ethics of a decision. E. None of these questions is an important way of testing the ethics of a decision. A MN Fa
Whistleblower Protection 188.
Someone who exposes the misdeeds of others in an organization in an attempt to preserve ethical standards and protect against wasteful, harmful, or illegal acts is called __________. A. A retaliator. B. A whistleblower. C. An ethics steward. D. An ethics evaluator. E. An ethics sheriff. B KT Fa
Chapter 3: Ethical Behaviour and Social Responsibility
103
189.
Which of the following is NOT a potential risk faced by people who act as whistleblowers? A. Impaired career progress. B. Retaliatory discharge. C. Being ostracized by peers. D. Being generously rewarded for revealing misdeeds. E. Character assassination. D GT Ap
190.
A strict chain of command, strong work group identities, and ambiguous priorities are __________. A. Organizational barriers to whistleblowing. B. Essential components of moral quality circles. C. Mechanisms for resolving ethical dilemmas. D. All of the above. E. None of the above. A GT Fa
191.
The __________ is an approach for gaining shared commitments to high ethical standards. A. Autonomous work group. B. Moral quality circle. C. Ethical work group. D. Ethics police. E. Shared ethics task force. B GT Fa
Ethical Role Models 192.
To set the proper ethical tone for the organization, top management should __________. A. Communicate expectations for ethical behaviour throughout the organization. B. Reinforce ethical behaviour. C. Be role models of ethical behaviour. D. Al of the above. E. None of the above. D GT Fa
193.
__________ should act as ethical role models and set an ethical tone in their areas of responsibility. A. Top management only. B. Middle management only. C. First-line or supervisory management only. D. Top and middle management levels only. E. All levels of management. E GT Fa
104 194.
Schermerhorn & Wright: Management Which of the following statements does NOT provide an accurate description regarding how pressure to achieve goals impacts ethics and ethical behaviour? A. Employees often feel pressure to compromise personal standards to achieve company goals. B. A company president can create an ethical climate by setting reasonable goals. C. Any manager can unwittingly encourage subordinates to engage in unethical behaviour by exerting too much pressure to achieve goals that are too difficult. D. Part of a manager’s ethical responsibility is to be realistic in setting performance targets for others. E. Managers can create an ethical environment by setting goals that are extremely challenging and continuously push subordinates to achieve these goals. E GT Ap
Codes of Ethical Conduct 195.
A formal statement of an organization’s values and ethical principles that provide guidelines on how to behave in situations susceptible to ethical dilemmas are referred to as the organization’s __________. A. Code of ethics. B. Corporate social responsibility. C. Management guidelines. D. Employee mandate. E. Employee handbook. A KT Fa
196.
Most codes of ethical conduct identify expected behaviour in terms of __________. A. General organizational citizenship. B. Good relationships with customers. C. Avoidance of illegal acts or improper acts in one’s work. D. All of the above. E. None of the above. D GT Fa
197.
Formal codes of ethics are usually concerned with expressing how employees may be expected to behave with respect to all of the following EXCEPT: A. Customer-supplier relationships. B. Political contributions. C. Confidentiality of corporate information. D. Choice of friends and acquaintances. E. Responses to bribes and kickbacks. D GT Fa
198.
The Gap, Inc. expects certain ethical commitments from all its vendors. These ethical standards prohibit all of the following EXCEPT: A. Discrimination. B. Forced labour. C. Working conditions. D. Minimum wages and benefits. E. Freedom of association. D GT Ap
Chapter 3: Ethical Behaviour and Social Responsibility
105
199.
Codes of ethical conduct have several limitations. Which of the following is NOT one of these limitations? A. Codes of ethical conduct cannot guarantee ethical conduct. B. The value of an ethics code relies on the organization’s underlying human resource foundation. C. Ethical codes are not useful is large, complex organizations. D. Ethical codes are not replacements for hiring people of integrity. E. Ethical codes cannot replace leadership that is committed to being positive role models for the rest of the organization’s members. C GT Ap
200.
The value of any formal code of ethics relies on __________. A. Effective hiring practices that staff organizations with honest and moral people. B. Committed managers who are willing to set examples and act as positive ethical role models. C. The underlying human resource foundations of the organization. D. All of the above. E. None of the above. D GT Ap
CORPORATE SOCIAL RESPONSIBILITY (STUDY QUESTION 4) 201.
__________ refers to an organization’s obligation to act in ways that serve its own interests as well as the interests of society at large. A. A code of ethics. B. A moral code. C. A formal policy statement. D. Public accountability. E. Corporate social responsibility. E KT Fa
Stakeholder Issues and Analysis 202.
The persons, groups, and other organizations directly affected by the behaviour of an organization and holding a stake in its performance are referred to as __________. A. Governing boards. B. Organizational stakeholders. C. Trustees. D. Role senders. E. Regulators. B KT Fa
203.
Major organizational stakeholders include all of the following EXCEPT: A. Employees and contractors who work for the organization. B. Providers of the organization’s human, information, material, and financial resources. C. General economic conditions and political trends. D. Stockholders, investors, and creditors with claims on assets and profits of the organization. E. Local, state, and national governmental agencies that enforce laws and regulations. C GT Fa
106
Schermerhorn & Wright: Management
204.
Which of the following represent a major organizational stakeholder? A. Consumers and clients who purchase the organization’s goods and/or use its services. B. Other organizations producing the same or similar goods and services. C. Community groups, activities, and others who represent the interests of citizens and society. D. A and B. E. A, B, and C. E GT Fa
205.
Which of the following leadership beliefs is NOT appropriate for guiding socially responsible organizational practices? A. People do their best in a healthy work environment that allows for job involvement as well as a good balance between work and family life. B. Organizations function best over the long run when located in healthy communities with high qualities of life. C. Organizations realize performance gains and efficiencies by exploiting the natural environment. D. Organizations must be managed and led for long-term success. E. An organization’s reputation must be protected as a valuable asset. C GT Fa
206.
The leadership beliefs that guide socially responsible organizational practices include all of the following EXCEPT: A. People. B. Communities. C. Natural environment. D. Short-term success. E. Reputation. D GT Fa
Perspectives on Corporate Social Responsibility 207.
__________ is the social responsibility view holding that management’s only responsibility in running a business is to maximize profits. A. The stockholder model. B. The free market model. C. The corporate view. D. The classical view. E. The socioeconomic view. D GT Fa
208.
All of the following are arguments against the assumption of social responsibility by business EXCEPT: A. Social responsibility will raise business costs. B. Social responsibility will reduce business profits. C. Social responsibility will dilute the social power of business. D. Social responsibility will dilute the purpose of business. E. Social responsibility will give business too much social power. C GT Ap
Chapter 3: Ethical Behaviour and Social Responsibility
107
209.
__________ is the social responsibility view that maintains the organization must be concerned with the broader social welfare and not just with corporate profits. A. The stockholder model. B. The free market model. C. The stakeholder view. D. The classical view. E. The socioeconomic view. E GT Fa
210.
Arguments that corporations should engage in socially responsible behaviour include all of the following EXCEPT: A. Social responsibility decreases the need for restrictive government regulation. B. Businesses have the resources and obligation to act in socially responsible ways. C. Socially responsible behaviour improves the public image of business. D. Pursuing socially responsible goals may dilute the purpose of the business. E. Long-run profits for the business may improve or even be dependent on its degree of social responsibility. D GT Ap
211.
Which of the following statements regarding the relationship between social responsibility and financial performance is NOT true? A. High performance in social responsibility can be associated with strong financial performance. B. At worst, strong corporate social responsibility has no adverse impact on financial performance. C. High performance in social responsibility is seldom, if ever, associated with strong financial performance. D. Recent evidence suggests that corporate social responsibility leads to improved financial performance and this, in turn, leads to additional socially responsible actions. E. Businesses can serve the public good and a broad pool of stakeholders as well as advance the financial interests of their shareholders. C GT Ap
212.
The __________ refers to the situation in which corporate social responsibility leads to improved financial performance and this, in turn, leads to additional socially responsible actions. A. Generous stakeholder. B. Virtuous circle C. Just alliance. D. Fair community. E. Socioeconomic parable. B GT Fa
108 213.
Schermerhorn & Wright: Management Which statement is MOST correct in terms of the textbook presentation of the public’s expectations of business regarding corporate social responsibility? A. There are no compelling arguments against corporate social responsibility. B. Corporate social responsibility is not related to managerial ethics. C. There are increased expectations that organizations will act with genuine social responsibility. D. The Canadian legal system does not protect the rights of consumers against socially irresponsible business acts. E. Corporate social responsibility should be the concern of only top-level managers in organizations. C GT Ap
Evaluating Corporate Social Performance 214.
A social responsibility audit is __________. A. A systematic assessment and reporting of an organization’s accomplishments in various areas of corporate social responsibility. B. A public opinion survey regarding the social impact of a corporation’s actions. C. An internal accounting audit requested by shareholders. D. A systematic assessment of the corporation’s impact on its employees’ social lives. E. A survey of employees regarding their social preferences. A KT Fa
215.
Which of the following does NOT reflect a common audit area for corporate social responsibility? A. Ecology and environmental quality. B. Truth in lending and consumer protection. C. Managing conflict. D. Service to communities. E. Employment practices. C GT Ap
216.
Corporate social responsibility is reflected in the way a company deals with all of the following EXCEPT: A. General corporate philanthropy. B. Labour relations. C. Diversity practices. D. Organizational politics. E. Aid to education. D GT Ap
217.
When corporate social performance focuses on acting to avoid adverse consequences, the company’s actions are driven by __________. A. Commitment. B. Compliance. C. Habeas corpus. D. Conviction. E. Greed. B GT Fa
Chapter 3: Ethical Behaviour and Social Responsibility
109
218.
When corporate social performance focuses on acting to create positive impact, the company’s actions are driven by __________. A. Commitment. B. Compliance. C. Habeas corpus. D. Conviction. E. Guilt. A GT Fa
219.
The text identifies several criteria for evaluating socially responsible corporate behaviour. A firm is meeting its __________ when it earns a profit through provision of goods and services desired by customers. A. Economic responsibility. B. Legal responsibility. C. Ethical responsibility. D. Discretionary responsibility. E. Stakeholder responsibility. A GT Fa
220.
An organization is meeting its economic responsibility when it __________. A. Is in compliance with the law and requirements of various external regulations. B. Voluntarily moves beyond basic economic, legal, and ethical expectations to provide leadership in advancing social well-being. C. Earns a profit through provision of goods and services desired by customers. D. Voluntarily conforms to legal expectations and broader values and moral expectations of society. E. Anticipates socially responsible behaviour. C GT Fa
221.
The text identifies several criteria for evaluating socially responsible corporate behaviour. A firm is meeting its __________ when it operates within the law and according to the requirements of various external regulations. A. Economic responsibility. B. Legal responsibility. C. Ethical responsibility. D. Discretionary responsibility. E. Stakeholder responsibility. B GT Fa
222.
An organization is meeting its legal responsibility when it __________. A. Is in compliance with the law and requirements of various external regulations. B. Voluntarily moves beyond basic economic, legal, and ethical expectations to provide leadership in advancing social well-being. C. Earns a profit through provision of goods and services desired by customers. D. Voluntarily conforms to legal expectations and broader values and moral expectations of society. E. Anticipates socially responsible behaviour. A GT Fa
110
Schermerhorn & Wright: Management
223.
The text identifies several criteria for evaluating socially responsible corporate behaviour. A firm is meeting its __________when it voluntarily conforms to legal as well as broader values and moral expectations of society. A. Economic responsibility. B. Legal responsibility. C. Ethical responsibility. D. Discretionary responsibility. E. Stakeholder responsibility. C GT Fa
224.
An organization is meeting its ethical responsibility when it __________. A. Is in compliance with the law and requirements of various external regulations. B. Voluntarily moves beyond basic economic, legal, and ethical expectations to provide leadership in advancing social well-being. C. Earns a profit through provision of goods and services desired by customers. D. Voluntarily conforms to legal expectations as well as broader values and moral expectations of society. E. Anticipates socially responsible behaviour. D GT Fa
225.
The text identifies several criteria for evaluating socially responsible corporate behaviour. A firm is meeting its __________when it voluntarily moves beyond basic economic, legal, and ethical expectations to provide leadership in advancing social well-being. A. Economic responsibility. B. Legal responsibility. C. Ethical responsibility. D. Discretionary responsibility. E. Stakeholder responsibility. D GT Fa
226.
An organization is meeting its discretionary responsibility when it __________. A. Is in compliance with the law and requirements of various external regulations. B. Voluntarily moves beyond basic economic, legal, and ethical expectations to provide leadership in advancing social well-being. C. Earns a profit through provision of goods and services desired by customers. D. Voluntarily conforms to legal expectations as well as broader values and moral expectations of society. E. Anticipates socially responsible behaviour. B GT Fa
227.
The highest level of social performance comes through the satisfaction of an organization’s __________. A. Economic responsibility. B. Legal responsibility. C. Ethical responsibility. D. Discretionary responsibility. E. Stakeholder responsibility. D GT Fa
Chapter 3: Ethical Behaviour and Social Responsibility
111
228.
The obstructionist strategy involves a corporate social responsibility commitment that __________. A. Reflects mainly economic concerns. B. Seeks to protect the organization by doing the minimum legally required to satisfy expectations. C. Is congruent with society’s prevailing norms, values, and expectations. D. Takes preventive action to avoid adverse social impact. E. Is inconsistent with prevailing societal norms. A KT Fa
229.
The obstructionist strategy of social responsibility meets the organization’s __________. A. Economic responsibility. B. Economic and legal responsibilities. C. Economic, legal, and ethical responsibilities. D. Economic, legal, ethical, and discretionary responsibilities. E. Economic, legal, ethical, discretionary, and political responsibilities. A KT Fa
230.
The defensive strategy involves a corporate social responsibility commitment that __________. A. Reflects mainly economic concerns. B. Seeks to protect the organization by doing the minimum legally required to satisfy expectations. C. Is congruent with society’s prevailing norms, values, and expectations. D. Takes preventative action to avoid adverse social impact. E. Is inconsistent with prevailing societal norms. B KT Fa
231.
The defensive strategy of social responsibility meets the organization’s __________. A. Economic responsibility. B. Economic and legal responsibilities. C. Economic, legal, and ethical responsibilities. D. Economic, legal, ethical, and discretionary responsibilities. E. Economic, legal, ethical, discretionary, and political responsibilities. B KT Fa
232.
An organization that is pursuing a(n) __________ social responsibility strategy would likely do the minimum ethically required to satisfy economic, legal, and ethical criteria. A. Obstructionist. B. Defensive. C. Accommodative. D. Proactive. E. Ethical. C KT Fa
112
Schermerhorn & Wright: Management
233.
The accommodative strategy of social responsibility meets the organization’s __________. A. Economic responsibility. B. Economic and legal responsibilities. C. Economic, legal, and ethical responsibilities. D. Economic, legal, ethical, and discretionary responsibilities. E. Economic, legal, ethical, discretionary, and political responsibilities. C KT Fa
234.
An organization that is following a(n) __________ social responsibility strategy would both take preventive action to avoid adverse social impacts from company activities and take a leadership role in identifying and responding to emerging social issues. A. Obstructionist. B. Defensive. C. Accommodative. D. Proactive. E. Ethical. D KT Fa
235.
The proactive strategy of social responsibility meets the organization’s __________. A. Economic responsibility. B. Economic and legal responsibilities. C. Economic, legal, and ethical responsibilities. D. Economic, legal, ethical, and discretionary responsibilities. E. Economic, legal, ethical, discretionary, and political responsibilities. D KT Fa
ORGANIZATIONS AND SOCIETY (STUDY QUESTION 5) How Governments Influence Organizations 236.
In terms of ethical behaviour and social responsibility, governmental agencies have the primary responsibility of __________. A. Serving the public interest by expanding the number of jobs available in the economy. B. Creating an extensive series of forms and reports to document as many business activities as possible. C. Making sure that businesses are not controlled by criminal elements. D. Monitoring and ensuring that businesses comply with legislative mandates. E. Serving as a balance to powerful business lobbies that attempt to influence the decisions made by Congress. D GT Fa
237.
Government takes an active role in regulating business affairs in Canada in all of the following areas EXCEPT: A. Environmental protection. B. Consumer protection. C. Profit maximization. D. Occupational health and safety. E. Fair labour practices. C GT Fa
Chapter 3: Ethical Behaviour and Social Responsibility
113
238.
When the Canadian government takes an active role in regulating business by focusing on occupational safety and health, it __________. A. Enforces laws to prohibit employment discrimination. B. Enforces regulations to encourage clean air. C. Discourages product dumping and unfair competitive practices. D. Forces businesses to withdraw from sale any products that are hazardous to consumers. E. Regulates the safety of working conditions. E GT Ap
239.
When the Canadian government takes an active role in regulating business through fair labour practices, it __________. A. Enforces laws to prohibit employment discrimination. B. Enforces regulations to encourage clean air. C. Discourages product dumping and unfair competitive practices. D. Forces businesses to withdraw from sale any products that are hazardous to consumers. E. Regulates the safety of working conditions. A GT Ap
240.
The Canadian government takes an active role in regulating business affairs concerning consumer protection when it __________. A. Enforces laws to prohibit employment discrimination. B. Enforces regulations to encourage clean air. C. Discourages product dumping and unfair competitive practices. D. Forces businesses to withdraw from sale any products that are hazardous to consumers. E. Regulates the safety of working conditions. D GT Ap
241.
The Canadian government takes an active role in regulating business affairs concerning environmental protection when it __________. A. Enforces laws to prohibit employment discrimination. B. Enforces regulations to encourage clean air. C. Discourages product dumping and unfair competitive practices. D. Forces businesses to withdraw from sale any products that are hazardous to consumers. E. Regulates the safety of working conditions. B GT Ap
How Organizations Influence Governments 242.
__________ enable(s) executives to get to know important people in government and try to gain their support for special interests. A. Personal contacts and networks. B. Public relations campaigns. C. Lobbying. D. Political action committees. E. Illegal acts. A GT Fa
114
Schermerhorn & Wright: Management
243.
__________ allow(s) executives to communicate positive images of their organizations to the public at large. A. Personal contacts and networks. B. Public relations campaigns. C. Lobbying. D. Political action committees. E. Illegal acts. B GT Fa
244.
__________ enable(s) executives to have their positions and preferences communicated directly to government officials.
A. Personal contacts and networks. B. Public relations campaigns. C. Lobbying. D. Political action committees. E. Illegal acts. C KT Fa 245.
__________ enable(s) executives to seek influence through financial support for favored political candidates.
A. Personal networks. B. Public relations campaigns. C. Lobbying. D. Political action committees. E. Illegal acts. D KT Fa 246.
Offering bribes in an attempt to gain influence over public officials is the use of __________ with respect to organizations influencing governments.
A. Personal networks. B. Public relations campaigns. C. Lobbying. D. Political action committees. E. Illegal acts. E GT Fa 247.
According to the text, the approaches that businesses can take in influencing governments include all of the following EXCEPT: A. Personal contacts and networks. B. Public relations campaigns. C. Lobbying. D. Illegal acts. E. Refusing to abide by regulatory controls. E GT Fa
Chapter 3: Ethical Behaviour and Social Responsibility
115
Role of Corporate Governance 248.
__________ refers to a board of directors providing oversight of the top management of an organization. A. Moral oversight. B. Public scrutiny. C. Corporate governance. D. Ethical imperialism. E. An executive network. C KT Fa
249.
Corporate governance typically involves all of the following EXCEPT: A. Hiring and firing the chief executive officer (CEO). B. Assessing strategy. C. Verifying financial records. D. Approving product specifications and production methods. E. Compensating the chief executive officer (CEO). D GT Ap
250.
Which of the following are legitimate concerns about the failures of corporate governance? A. The pay of chief executive officers is too high. B. The pay of chief executives officers is too often high when firms perform poorly. C. Scandals occur that raise concerns about executives’ commitment to high ethical standards and corporate social responsibility. D. A and C. E. A, B, and C. E GT Ap
251.
The management challenge in contemporary organizations is best summarized in which of the following statements? A. Managers must simultaneously maintain high-performance standards as well as ethical and socially responsible operations. B. Every manager must strive to achieve organizational goals even if it compromises his/her values. C. Economic performance is the most important objective that managers must achieve. D. Maintaining ethical standards and promoting social responsibility are the most important objectives managers must achieve. E. Management in today’s business environment should be approached in essentially the same way that it was in the past. A GT Ap
116 252.
Schermerhorn & Wright: Management Increasingly, the public demands that __________ A. Managers will be held accountable for achieving performance objectives as well as for maintaining high ethical standards and social responsibility. B. Organizations will be held accountable for ethical and social performance as well as economic performance. C. Managers at all levels must achieve performance objectives while doing so in a socially responsible manner. D. All of the above. E. None of the above. D GT Ap
Essay Questions 253.
Identify four alternative views of ethical behaviour and briefly describe the main emphasis of each view. Suggested Answer: The four alternative views of ethical behaviour and the main emphasis of each are as follows: • • • •
254.
Utilitarian view ⎯ ethical behaviour that delivers the greatest good to greatest number of people. Individualism view –– ethical behaviour that best serves long-term self-interests. Moral-rights view –– ethical behaviour that respects the fundamental rights of all people. Justice view ⎯ ethical behaviour that is impartial and fair in treating people according to guiding rules and standards.
Explain the concepts of cultural relativism and cultural universalism. What implications do these concepts have for international business operations? Suggested Answer: Cultural relativism is the notion that there is no one right way to behave and that ethical behaviour is always determined by the cultural context. Cultural universalism is an alternative view to cultural relativism; this alternative view suggests that if a behaviour is not acceptable in one’s home environment, it shouldn’t be an acceptable practice anywhere else. Critics claim that universalism is a form of ethical imperialism, or the attempt to externally impose one’s ethical standards on others. Given that ethical standards may vary across nations and cultures, international business operations are challenged to remain faithful to corporate standards of conduct while being sensitive, and perhaps even responsive, to the ethical customs of the various nations/cultures in which business is conducted. A way of accomplishing this is provided by business ethicist Thomas Donaldson, who argues that: (a) certain fundamental rights and ethical standards, or “hyper-norms” should transcend cultural boundaries; and (b) even with a commitment to these transcendent values, international business behaviours can be tailored to local and regional cultural contexts. Companies should be committed to the core values of respecting human dignity, respecting basic human rights, and being good citizens.
Chapter 3: Ethical Behaviour and Social Responsibility
255.
117
What is an ethical dilemma? Describe some of the possible sources of ethical dilemmas. Suggested Answer: An ethical dilemma occurs when someone must choose whether or not to pursue a course of action that, although offering the potential of personal or organizational benefit or both, may be considered unethical. Potential sources of ethical dilemmas include discrimination, sexual harassment, conflicts of interest, customer confidence, and organizational resources. Additionally, many ethical dilemmas involve conflicts with superiors, customers, and subordinates.
256.
Discuss the ways in which high ethical standards may be maintained in organizations. Suggested Answer: Four primary methods for maintaining high ethical standards are: ethics training, whistleblower protection, ethical role models, and codes of ethical conduct. Each of these is described below: •
•
•
•
257.
Ethics training refers to structured programs that help participants understand the ethical aspects of decision making, and help people incorporate high ethical standards into their daily behaviours. Ethics training helps people deal with ethical issues while under pressure and to avoid the common rationalizations for unethical behaviour. Whistleblowers are people who expose the misdeeds of others in organizations in order to preserve ethical standards and protect against wasteful, harmful, or illegal acts. Whistleblowers need to be protected because of the risk of managerial/organizational retaliation and career damage. Being an ethical role model applies to managers throughout the organization. The behaviour of top managers can either encourage or discourage unethical behaviour in others at lower levels of the organization. Although top managers have a special responsibility for setting the ethical tone of an organization, all managers can influence the ethical behaviour of the people who work for and with them. Codes of ethical conduct are official written guidelines on how to behave in situations susceptible to ethical dilemmas. Most ethical codes identify expected behaviour in terms of general organizational citizenship, the avoidance of illegal or improper acts in one’s work, and good relationships with customers.
What is corporate social responsibility? In your opinion, should businesses be socially responsible? Support your answer with appropriate reasons. Suggested Answer: Corporate social responsibility looks at ethical behaviour from the organizational level. Corporate social responsibility is an obligation of the organization to act in ways that serve both its own interests and the interests of its many external stakeholders ⎯ those persons, groups, and other organizations directly affected by the behaviour of the organization and who hold a stake in its performance. In the 21st century economy, it is hard to argue against corporate social responsibility. One way to approach this is by exploring the linkage between organizations’ corporate social
118
Schermerhorn & Wright: Management responsibility and their financial performance. In the short term, financial success might be achieved by ignoring social responsibility. In the long term, however, proper attention must be given to social responsibility in order for the company to survive and prosper. Indeed, in today’s world, the public at large expects businesses and other organizations to act with genuine social responsibility. Additionally, increasing empirical evidence indicates that high performance in social responsibility can be associated with strong financial performance and, at worst, has no adverse financial impact. Moreover, recent evidence suggests the existence of a virtuous circle in which corporate social responsibility leads to improved financial performance and this, in turn, leads to additional socially responsible actions. Another approach for supporting the contention that businesses should be socially responsible draws upon the four criteria for evaluating corporate social performance. These criteria, which can be arranged in a hierarchy of impact, are the following: • • • •
The organization’s economic responsibility, which is met when it earns a profit through the provision of goods and services desired by customers. The organization’s legal responsibility, which is fulfilled when it operates within the law and according to the requirements of various external regulations. The organization’s ethical responsibility, which is met when its actions voluntarily conform to both legal expectations and the broader values and moral expectations of society. The organization’s discretionary responsibility, which involves the organization’s voluntary movement beyond basic economic, legal, and ethical expectations to provide leadership in advancing the well-being of individuals, communities, and society as a whole.
The argument can be made that businesses are more likely to survive and succeed over the long term when they fulfill a responsibility that has greater impact. Thus, a higher probability of survival and success would occur by fulfilling the legal responsibility than by just fulfilling the economic responsibility. Likewise, fulfilling the ethical responsibility likely produces still further increases in the probability of business success and survival. Fulfilling the discretionary responsibility should provide a business with the greatest chance of survival and success.
Chapter 4:
ENVIRONMENT, ORGANIZATIONAL CULTURE, AND DIVERSITY True/False Questions CHAPTER INTRODUCTION 1.
In the 21st century, managers are learning to operate in a world that places a premium on information, technology utilization, quality, customer service, and speed. T GT Fa
2.
In the 21st century, managers are learning to succeed in a world of intense competition, continued globalization of markets and business activities, rapid technological change, and renewed demands for ethical behaviour and social responsibility. T GT Fa
ENVIRONMENT AND COMPETITIVE ADVANTAGE (STUDY QUESTION 1) 3.
Knowledge and speed are indispensable to success in the 21st-century economy. T GT Ap
What Is Competitive Advantage? 4.
Competitive advantage is a core competency that sets an organization apart from its competitors and gives it an advantage over them in the marketplace. T GT Fa
5.
An organization can achieve a competitive advantage through pricing, quality, or customer service but not through products or cost efficiency. F GT Fa
6.
The key result of achieving a competitive advantage is an ability to consistently do something of high value that one’s competitors cannot replicate quickly or do as well. T GT Fa
7.
The key results of achieving a competitive advantage are an ability to establish a monopolistic market position and an ability to dictate consumer needs and preferences. F GT Fa
119
120
Schermerhorn & Wright: Management
8.
Competitive advantage is especially important in the demanding global economy because nowhere in the world can managers rest on past successes and ignore what others are doing, either at home or abroad. T GT Ap
The General Environment 9.
The general environment consists of all conditions in the external environment that form a background context for managerial decision making. T KT Fa
10.
The general environment consists of the economic, social-cultural, legal-political, technological, and natural environment conditions in the external environment that can substantially influence the operations of an organization. T GT Fa
11.
Economic conditions in the general environment include inflation, income levels, gross domestic product, unemployment, and job outlook. T GT Fa
12.
Social-cultural conditions in the general environment include the philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations. F GT Fa
13.
Legal-political conditions in the general environment include norms, customs, and social values regarding human right; trends in education and related social institutions; and demographic patterns in society. F GT Fa
14.
Technological conditions in the general environment include the development and availability of technology, including scientific advancements. T GT Fa
15.
Natural environment conditions in the general environment include nature and conditions of the natural environment, including levels of pubic concern expressed through environmentalism. T GT Fa
16.
Some of the important social-cultural conditions of the general environment include more people of color and more women entering the workforce, accompanied by decreases in both religious diversity and the number of workers coming from nontraditional families. F MN Fa
Stakeholders and the Specific Environment 17.
The specific environment consists of the of all the background conditions in the external environment of an organization. F KT Fa
Chapter 4: Environment, Organizational Culture and Diversity
121
18.
The specific environment consists of the actual organizations, groups, and persons with whom an organization interacts and conducts business. T KT Fa
19.
Stakeholders are the persons, groups, and institutions who are affected in some way by the organization’s performance. T KT Fa
20.
The specific environment is unique for each organization, and varies according to the company’s customer base and operating needs. T GT Fa
21.
Customers, suppliers, competitors, and regulators are important stakeholders in the specific environment of most organizations. T GT Fa
22.
Value creation refers to the extent to which the organization is creating value for and satisfying the needs of important constituencies. T GT Fa
23.
Customers and owners are important resource input stakeholders in an organization’s value creation, whereas suppliers and communities are important product output stakeholders in an organization’s value creation. F GT Fa
Environmental Uncertainty 24.
Environmental uncertainty refers to the lack of complete information regarding what exists and what developments may occur in the external environment. T GT Fa
25.
Environmental uncertainty is based on two dimensions: (a) complexity, or the number of different factors in the environment, and (b) the rate of change in these factors. T GT Fa
26.
Low environmental uncertainty occurs when the rate of change in the environment is high and the complexity of the environment is high. F GT Fa
27.
High environmental uncertainty occurs when the rate of change in the environment is low and the complexity of the environment is low. F GT Fa
28.
The greater the level of environmental complexity and the rate of change in the environment, the greater the level of environmental uncertainty. T GT Fa
122
Schermerhorn & Wright: Management
29.
The greater the level of environmental uncertainty, the more attention that management must direct toward the external environment and greater the need for flexibility and adaptability in organizational designs and work practices. T GT Ap
CUSTOMER-DRIVEN ORGANIZATIONS (STUDY QUESTION 2) Who Are the Customers? 30.
An external customer is the customer or client who buys or uses the organization’s goods and/or services. T GT Fa
31.
Internal customers are the individuals and groups within an organization who use or depend on the work of others within the organization. T GT Fa
What Customers Want 32.
Customers want high quality, low price, and on-time delivery in the goods and services they buy. T GT Fa
33.
Always protect your reputation for quality products/services and always treat your customers right are two important lessons that have been learned by contemporary successful businesses. T GT Ap
34.
Always protect your stockholders and always protect your reputation for shrewd financial management are two important lessons that have been learned by contemporary successful businesses. F GT Ap
Customer Relationship Management 35.
A Harvard Business Review Survey ranked customer service and product quality as first and second among the most important goals in the success of organizations. T GT Fa
36.
According to a survey by the market research firm, Michelson & Associates, customers abandon a retail store because of price fixing and false advertising. F GT Fa
37.
Customer relationship management concerns the strategic management of all operations involving the suppliers of an organization’s resources. F KT Fa
Chapter 4: Environment, Organizational Culture and Diversity
123
38.
Customer relationship management involves strategic management of all operations relating an organization to the suppliers of its resources –– including purchasing, manufacturing, transportation, and distribution. F KT Ap
39.
Supply chain management involves establishing and maintaining high standards of customer service. F KT Fa
40.
Achieving efficiency in all aspects of the supply chain while ensuring on-time availability of quality resources for customer-driven organizations is the fundamental goal of supply chain management. T GT Fa
QUALITY-DRIVEN ORGANIZATIONS (STUDY QUESTION 3) 41.
The competitive demands of a global economy have caused many countries to adopt ISO standards as quality benchmarks. T GT Fa
42.
ISO certification indicates organizational conformance with a rigorous set of international quality standards. T KT Fa
43.
To receive ISO certification, companies must receive governmental approval to apply for the certification exam and have at least 85% of the employees pass the certification exam, F GT Ap
Total Quality Management 44.
Total quality management describes the process of managing with an organization-wide commitment to continuous improvement, product quality, and customer needs. T KT Fa
45.
Total quality management makes quality principles a part of the organization’s strategic objectives, applying them to all aspects of operations, committing to continuous improvement, and striving to meet customers’ needs by doing things right the first time. T KT Fa
46.
Two of Philip Crosby’s “four absolutes” of management for total quality control are (a) quality comes from multiple defect inspections and (b) quality costs money. F GT Fa
47.
Two of Philip Crosby’s “four absolutes” of management for total quality control are (a) quality means conformance to standards, and (b) quality as a performance standard must mean defectfree work. T GT Fa
124
Schermerhorn & Wright: Management
Quality and Continuous Improvement 48.
Deming’s theory on quality emphasizes constant innovation, use of statistical methods, and commitment to training in the fundamentals of quality assurance. T GT Fa
49.
Continuous improvement is the elapsed time between receipt of an order and delivery of the finished product. F KT Fa
50.
Cycle time involves always searching for new ways to improve upon current performance. F GT Fa
51.
The basic philosophy of continuous improvement is that organization members should never be satisfied with current performance. T GT Fa
52.
A quality circle is a group of employees who meet periodically to discuss ways of improving the quality of their products or services. T KT Fa
53.
The main objective of using a quality circle is to have the members assume responsibility for quality and to apply everyone’s full creative potential in achieving it. T GT Fa
Quality, Technology, and Design 54.
Modern production systems utilize technology to better integrate the various aspects of operations as well as to permit modifications to be made quickly and in a cost-efficient fashion. T GT Fa
55.
Lean production allows processes to be changed quickly and efficiently to produce different products or make modifications to existing ones. F GT Fa
56.
Flexible manufacturing uses new technologies to streamline systems and allow work to be performed with fewer workers and smaller inventories. F GT Fa
57.
Providing individualized products quickly and with the production efficiencies once only associated with the mass production of uniform products can be accomplished by using techniques such as agile manufacturing and mass customization. T GT Fa
58.
A manufacturing approach that designs products with attention to how their component parts will be recycled when the product life ends is called design for manufacturing. F GT Fa
Chapter 4: Environment, Organizational Culture and Diversity 59.
125
Progressive manufacturers that create a design that lowers production costs and improves quality in all stages of production are using a practice known as design for disassembly. F GT Fa
ORGANIZATIONAL CULTURE (STUDY QUESTION 4) 60.
Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behaviour of its members. T KT Fa
61.
Corporate culture and organizational culture refer to two entirely different phenomena. F GT Fa
What Strong Cultures Do 62.
A strong corporate culture gets everyone committed to doing things that are in the best interests of the organization. T GT Fa
63.
The culture of an organization has the potential to shape attitudes and reinforce common beliefs but does not direct behaviour nor establish performance expectations and the motivation to fulfill them. F GT Fa
64.
A strong corporate culture helps an organization provide a clear vision of what the organization is attempting to accomplish. T GT Fa
65.
A strong corporate culture helps an organization ensure market domination and strong profits. F GT Fa
66.
The best organizations with strong cultures will likely have a performance orientation, encourage teamwork, encourage risk taking, encourage innovation, and make the well-being of people a top management priority. T GT Fa
Levels of Organizational Culture 67.
The observable culture and the core culture represent two levels of organizational culture. T GT Fa
68.
Elements of the observable culture include stories, heroes, rites and rituals, and symbols. T GT Fa
69.
Elements of the observable culture include strategy, performance, structure, and worker involvement. F GT Fa
126
Schermerhorn & Wright: Management
70.
Oral histories and tales about dramatic sagas and incidents in the life of the organization reflect the symbols element of observable culture. F GT Fa
71.
Heroes are the people who are singled out for special attention in an organization’s observable culture. T GT Fa
72.
As part of the observable culture of an organization, norms are the ceremonies and meetings that celebrate important occasions and performance accomplishments. F GT Fa
73.
The special use of language and other nonverbal expressions to communicate important aspects of corporate life are the stories of observable organizational culture. T GT Fa
74.
In comparison to the observable culture, the core culture is a deeper level of organizational culture. T GT Fa
75.
The organization’s core values are underlying assumptions and beliefs that influence the behaviour of organization members and actually contribute to elements of the observable culture. T KT Fa
76.
Highly successful companies typically focus on the core values performance excellence, innovation, social responsibility, integrity, worker involvement, customer service, and teamwork. T GT Fa
Value-Based Management 77.
Value-based management refers to managers who actively help develop, communicate, and enact shared values within an organization. T GT Fa
78.
All managers and team leaders working at any level of the organization are responsible for valuebased management. T GT Fa
79.
Leaders should promote core values that meet the tests of relevance, integrity, pervasiveness, and strength. T GT Fa
80.
Value-based management will succeed when the core values support key performance objectives and provide clear, consistent ethical anchors even though the values are not clearly understood nor accepted by everyone. F GT Fa
Chapter 4: Environment, Organizational Culture and Diversity
127
Symbolic Leadership 81.
A multicultural leader uses symbols to establish and maintain a desired organizational culture. F KT Fa
82.
Symbolic leaders both act and talk the language of the organization and are careful to behave in ways that live up to the espoused core values. T GT Ap
83.
Symbolic leaders de-emphasize elements of the observable culture because the leaders are everpresent role models for others to emulate and follow. F GT Ap
84.
Newly hired workers at Disney World are counselled to always think of themselves as more than employees; they are key “members of the cast.” This is an example of Disney World’s use of language metaphors. T GT Ap
85.
Good symbolic leaders highlight the observable culture by repeatedly telling key stories and frequently using rites and rituals to glorify the performance of the organization and its members. T GT Ap
MULTICULTURAL ORGANIZATIONS AND DIVERSITY (STUDY QUESTION 5) 86.
Diversity describes differences among people at work. T KT Fa
87.
Race and gender are the only diversity dimensions that are relevant to the workplace. F GT Fa
88.
The advantages of diversity are gained only when diversity is leveraged through training and supportive human resource practices. T GT Fa
What Is a Multicultural Organization? 89.
In the context of organizational culture, inclusivity refers to the degree to which the organization is open to anyone who can perform a job, regardless of his or her race, sexual preference, gender, or other diversity attribute. T GT Fa
90.
Multiculturalism refers to inclusivity, pluralism, and the respect for diversity in the workplace. T KT Fa
91.
Multicultural organizations are based on pluralism and operate with inclusivity and respect for diversity, thereby valuing the talents, ideas, and creative potential of all organization members. T KT Fa
128
Schermerhorn & Wright: Management
92.
A multicultural organization is characterized by pluralism, structural integration, informal network integration, absence of prejudice and discrimination, and minimum intergroup conflict. T GT Fa
Organizational Subcultures 93.
Organizational subcultures are common to groups of people with similar values and beliefs based upon shared work responsibilities and personal characteristics. T KT Fa
94.
Pluralism is the belief that one’s membership group or subculture is superior to all others. F GT Fa
95.
Occupational subcultures refer to people who develop strong identities with their work groups and specific areas of task responsibilities F GT Ap
96.
Functional subcultures are composed of “salaried professionals” such as lawyers, scientists, engineers, and accountants. F GT Ap
97.
Ethnic or national subcultures consist of different racial groups that work well together. F GT Ap
98.
Racial subcultures reflect the different ethnicities and nationalities of the world. F GT Ap
99.
Generational subcultures reflect gaps that exist between people who grew up and are growing up during different periods of history, and whose values have thus evolved under different influences. T GT Ap
100.
Gender subcultures reflect differences in the values and beliefs of women and men. T GT Ap
Challenges Faced by Minorities and Women 101.
Minority members face special economic and work challenges, and these challenges are not always highly visible because more workforce diversity is likely to exist at the top of most organizations than at lower and middle levels. F GT Ap
102.
The glass ceiling refers to a hidden barrier in some organizations that limits the advancement of women and minorities. T GT Fa
103.
The daily work challenges that can be faced by minority subcultures in organizations include misunderstandings, lack of sensitivity, sexual harassment, pay discrimination, and job discrimination T GT Ap
Chapter 4: Environment, Organizational Culture and Diversity
129
104.
Sexual harassment and pay discrimination are two of the possible challenges that are often faced by the majority group in an organization. F GT Ap
105.
Biculturalism occurs when members of minority cultures display majority culture characteristics that seem to be necessary for success in the workplace. T GT Fa
106.
In North America, disabled workers have benefited as much as other groups have from the economic growth of the 1990s. F GT Fa
Managing Diversity 107.
High involvement management is the process of building an organizational culture that allows all members, minorities and women included, to reach their full potential. F KT Fa
108.
Phil’s organization employs many older, disabled, and minority group workers. Phil wants to create a workplace environment that enables all employees to reach their full potential. Phil is committed to managing diversity. T KT Ap
109.
Roosevelt Thomas describes a continuum of leadership approaches to diversity. The continuum is advancing action, valuing diversity, and managing diversity. T KT Fa
110.
Managing diversity is an approach wherein leadership commits the organization to education and training programs designed to help people better understand and respect individual differences. F GT Fa
111.
Valuing diversity is a leadership approach in which leaders commit to changing the organizational culture to empower and include all people. F GT Fa
112.
A diverse workforce presents little management challenge in addressing various human resources issues. F GT Ap
113.
A diverse workforce helps an organization to better understand and serve the needs of the global marketplace. T GT Ap
114.
The basic building block of a diversity–mature organization is the absence of a glass ceiling. F GT Ap
115.
Valuing diversity, managing diversity, and affirmative action are three leadership approaches to diversity. Of these three approaches, affirmative action is the one that offers the most value with respect to establishing competitive advantage. F GT Ap
130
Schermerhorn & Wright: Management
Multiple Choice Questions CHAPTER INTRODUCTION 116.
In the 21st century, managers are learning to succeed in a world of __________. A. Information and technology utilization. B. Quality and speed. C. Customer service. D. B and C. E. A, B, and C. E GT Fa
117.
Contemporary managers are learning to do many things because of the impact of the 21st century environment. Which of the following is NOT one of the things that contemporary managers are learning to do? A. Contemporary managers are learning how to succeed in a world of intense competition. B. Contemporary managers are learning how to succeed in an environment of continued globalization of markets and business activities. C. Contemporary managers are learning how to succeed in a world of rapid technological change. D. Contemporary managers are learning to operate in a world that devalues information, quality, and speed. E. Contemporary managers are learning to respond to renewed demands for ethical behaviour and social responsibility. D GT Ap
ENVIRONMENT AND COMPETITIVE ADVANTAGE (STUDY QUESTION 1) 118.
__________ and __________ are indispensable to success in the 21st-century economy. A. Knowledge large inventories. B. Knowledge speed. C. Cost control bureaucratic designs. D. A and C. E. A, B, and C. B GT Ap
What Is Competitive Advantage? 119.
An organization establishes a __________ when it has a core competency that sets it apart from its competitors and gives it an advantage over them in the marketplace. A. Core advantage. B. Market advantage. C. Competitive advantage. D. Competency advantage. E. Management advantage. C KT Fa
Chapter 4: Environment, Organizational Culture and Diversity
131
120.
Organizations can create a __________ by utilizing a __________ that clearly sets it apart from its competitors and gives it an advantage over them in the marketplace. A. Competitive advantage … core competency. B. Core competency … competitive advantage. C. Competitive advantage … specific environment. D. General environment … specific environment. E. Core advantage … competitive competency. A KT Fa
121.
An organization can achieve a competitive advantage through which of the following ways? A. Pricing and customer service. B. Cost efficiency and quality. C. Products and quality. D. All of the above. E. None of the above. D GT Fa
122.
The key result of achieving a competitive advantage is __________. A. An ability to sidestep government regulations. B. An ability to consistently do something of high value which one’s competitors cannot replicate quickly or do as well. C. An ability to drive the competition out of business and to make extraordinarily high profits. D. An ability to establish a monopolistic market position. E. An ability to dictate consumer needs and preferences. B GT Fa
123.
__________ is especially important in the demanding global economy because nowhere in the world can managers rest on past successes and ignore what others are doing, either at home or abroad. A. Core advantage. B. Market advantage. C. Strategic advantage. D. Competitive advantage. E. Management advantage. D GT Ap
The General Environment 124.
The __________ consists of all the conditions in the external environment of an organization that forms a background context for managerial decision making. A. Task environment. B. General environment. C. Specific environment. D. Management environment. E. Organizational environment. B KT Fa
132
Schermerhorn & Wright: Management
125.
General environment conditions exclude which one of the following categories? A. Technological conditions. B. Human relations conditions. C. Economic conditions. D. Legal-political conditions. E. Natural environment conditions. B GT Fa
126.
Which of the following would NOT be a condition in the general environment? A. Economic conditions. B. Social-cultural conditions. C. Legal-political conditions. D. Extent and nature of competition. E. Technological conditions. D GT Fa
127.
Economic conditions in the general environment include __________. A. Philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations. B. Inflation, income levels, gross domestic product, unemployment, and job outlook. C. Norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society. D. Development and availability of technology, including scientific advancements. E. Nature and conditions of the natural environment, including levels of pubic concern expressed through environmentalism. B GT Fa
128.
Social-cultural conditions in the general environment include __________. A. Philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations. B. Inflation, income levels, gross domestic product, unemployment, and job outlook. C. Norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society. D. Development and availability of technology, including scientific advancements. E. Nature and conditions of the natural environment, including levels of pubic concern expressed through environmentalism. C GT Fa
129.
Legal-political conditions in the general environment include __________. A. Philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations. B. Inflation, income levels, gross domestic product, unemployment, and job outlook. C. Norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society. D. Development and availability of technology, including scientific advancements. E. Nature and conditions of the natural environment, including levels of pubic concern expressed through environmentalism. A GT Fa
Chapter 4: Environment, Organizational Culture and Diversity
133
130.
Technological conditions in the general environment include __________. A. Philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations. B. Inflation, income levels, gross domestic product, unemployment, and job outlook. C. Norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society. D. Development and availability of technology, including scientific advancements. E. Nature and conditions of the natural environment, including levels of pubic concern expressed through environmentalism. D GT Fa
131.
Natural environment conditions in the general environment include __________. A. Philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations. B. Inflation, income levels, gross domestic product, unemployment, and job outlook. C. Norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society. D. Development and availability of technology, including scientific advancements. E. Nature and conditions of the natural environment, including levels of pubic concern expressed through environmentalism. E GT Fa
132.
Differences in general environment factors are most noticeable when __________. A. Organizations sell a variety of goods or services to their customers. B. Organizations must rely on many suppliers. C. Organizations operate internationally. D. Organizations must deal with several different labour unions. E. Organizations discharge waste chemicals in the environment. C GT Ap
133.
Which of the following is NOT a diversity trend in organizations’ social-cultural environment? A. More women are working. B. People with disabilities are gaining more access to the workplace. C. People of color are a decreasing percentage of the workforce. D. More workers come from nontraditional families. E. Religious diversity of workers is increasing. C MN Ap
Stakeholders and the Specific Environment 134.
The term that is used to describe the actual organizations, groups, and persons with which an organization interacts and conducts business is __________. A. The general environment. B. The specific environment. C. The special environment. D. The multiple environment. E. The functional environment. B KT Fa
134
Schermerhorn & Wright: Management
135.
The specific environment can be described in terms of which of the following? A. Stakeholders. B. Persons, groups, or institutions that are affected by the organization’s performance. C. The task environment. D. All of the above. E. None of the above. D GT Ap
136.
Persons, groups, and institutions that are affected in some way by the organization’s performance are referred to as __________. A. Agencies. B. Stakeholders. C. Target populations. D. Corporate governance. E. Community dependents. B KT Fa
137.
All of the following are important stakeholder elements in the task environment of most organizations EXCEPT: A. Customers. B. Suppliers. C. Supervisors. D. Competitors. E. Regulators. C GT Fa
138.
Which of the following would NOT be an important stakeholder element in the specific environment of most organizations? A. Customers. B. Suppliers. C. Competitors. D. Regulators. E. Political parties. E GT Fa
139.
Which of the following statements about stakeholder analysis is/are true? A. Stakeholder analysis can be used to assess the organization’s current performance relative to strategic constituencies. B. Stakeholder analysis can be used to develop ideas for improving future performance relative to strategic constituencies. C. Stakeholder analysis helps focus management attention on value creation. D. A and B. E. A, B, and C. E GT Ap
Chapter 4: Environment, Organizational Culture and Diversity
135
140.
__________ refers to the extent to which the organization is developing value for and satisfying the needs of important strategic constituencies. A. Constituency development. B. Organization development. C. Value creation. D. Strategic needs management. E. Constituency creation. C KT Fa
141.
Which of the following statements about a stakeholder analysis of value is/are true? A. Suppliers and communities are important resource input stakeholders in an organization’s value creation. B. Employees are important transformation process stakeholders in an organization’s value creation. C. Customers and owners are important product output stakeholders in an organization’s value creation. D. A and C. E. A, B, and C. E GT Fa
Environmental Uncertainty 142.
__________ means that there is a lack of complete information regarding what exists and what developments may occur in the external environment. A. Environmental complexity. B. Environmental dynamism. C. Environmental change. D. Environmental uncertainty. E. Environmental information. D KT Fa
143.
Which of the following statements accurately describe the concept of environmental uncertainty? A. Environmental uncertainty consists of two components — complexity of the environment and rate of change in the environment. B. High environmental uncertainty occurs when the rate of change in the environment is high and the complexity of the environment is low. C. Low environmental uncertainty occurs when the rate of change in the environment is low and the complexity of the environment is high. D. All of the above statements accurately describe environmental uncertainty. E. None of the above statements accurately describe environmental uncertainty. A GT Fa
136
Schermerhorn & Wright: Management
144.
All of the following are true statements regarding environmental uncertainty EXCEPT: A. There is a lack of complete information concerning what developments will occur in the external environment. B. Most organizations encounter relatively little uncertainty in their environments. C. Complexity refers to the number of different factors that exist in the environment. D. The rate of change in factors in the environment is one component of environmental uncertainty. E. Environmental uncertainty makes it difficult to understand potential implications for the organization. B GT Fa
145.
The greater the level of environmental uncertainty, the __________. A. Greater the level of environmental complexity and the rate of change in the environment. B. More attention that management must direct toward the external environment. C. Greater the need for flexibility and adaptability in organizational designs and work practices. D. All of the above. E. None of the above. D GT Ap
CUSTOMER-DRIVEN ORGANIZATIONS (STUDY QUESTION 2) Who Are the Customers? 146.
Individuals who purchase the goods or services produced by an organization are called __________. A. Merchants. B. Internal customers. C. External customers. D. Satisfied customers. E. Producers. C GT Fa
147.
Individuals in an organization who depend on the results of others’ work in order to do their own jobs well are called __________. A. Jobbers. B. Internal customers. C. External customers. D. Quality experts. E. Dependent employees. B GT Fa
Chapter 4: Environment, Organizational Culture and Diversity
137
148.
Gloria assembles circuit boards in a computer manufacturing plant. She gets the chips for the boards from David, assembles the boards, and then forwards them to Judy, who puts them into the finished components. This example illustrates the concept of __________. A. Integrated manufacturing processes. B. Efficient task assignments. C. Internal customers, who use the results of others’ work to do their job. D. Total quality management and shared responsibility. E. Deming’s path to quality. C GT Ap
149.
Which one of the following statements does NOT accurately describe a practical implication of the concept of internal customers? A. Any job or function in the organization can represent an internal customer. B. Any job or function can be both a customer and a supplier. C. Internal customers refer only to jobs that are directly involved with the manufacture of a product. D. Internal customers have the right to expect high-quality and on-time inputs from earlier points in the workflow. E. Suppliers have the responsibility to deliver high-quality and on-time inputs to the next point in the workflow. C GT Ap
What Customers Want 150.
Which of the following characteristics do customers want in the goods and services they buy? A. High quality, low price, and on-time delivery. B. High quality, motivated employees, and low inventory carrying costs. C. High quality, low rice, and low scrap rates. D. High quantity, low costs, and high profit margins. E. High quality, minimal cycle time, and efficient procedures. A GT Fa
151.
Organizations lose competitive advantage when they __________. A. Respond effectively to customer complaints. B. Can’t meet customer expectations. C. Provide high quality services. D. Keep prices low. E. Are profitable. B GT Fa
138
Schermerhorn & Wright: Management
152.
__________ and __________ are two important lessons that have been learned by contemporary successful businesses. A. Always protect your stockholders always treat your customers right. B. Always protect your reputation for shrewd financial management always treat your employees right. C. Always protect your profits always treat your customers right. D. Always protect your reputation for quality products/services always treat your shareholders right. E. Always protect your reputation for quality products/services always treat your customers right. E GT Ap
Customer Relationship Management 153.
A Harvard Business Review survey ranked which of the following as first and second among the most important goals in the success of organizations? A. Technological advancements and recruiting quality employees. B. Financial returns to stockholders and market share. C. Productivity and profitability. D. Satisfying internal and external customers. E. Customer service and product quality. E GT Fa
154.
According to a survey by the market research firm, Michelson & Associates, customers abandon a retail store for which of the following reasons? A. Price fixing and false advertising. B. Poor service and product dissatisfaction. C. Product modification and excessive service charges. D. Employee grievances and poor working standards. E. Poor quality products and price fixing. B GT Fa
155.
__________ involves establishing and maintaining high standards of customer service. A. External customer responsiveness. B. Customer relationship management. C. Value chain management. D. Business relationship management. E. Supply chain management. B KT Fa
156.
__________ uses the latest information technology that allows organizations to maintain intense communication with customers as well as to gather and utilize data regarding the customers’ needs and preferences. A. Customer relationship management. B. Internal customer management. C. Value chain management. D. Total quality management. E. Supply chain management. A GT Fa
Chapter 4: Environment, Organizational Culture and Diversity
139
157.
__________ involves strategic management of all operations involving the suppliers of an organization’s resources. A. Value chain management. B. Internal customer management. C. Customer relationship management D. Total quality management. E. Supply chain management. E KT Fa
158.
Achieving efficiency in all aspects of the __________ while ensuring on-time availability of quality resources for customer-driven organizations is the fundamental goal of __________. A. Value chain value chain management. B. Quality chain quality chain management. C. Supply chain supply chain management. D. Customer chain customer chain management. E. Production chain production chain management. C GT Fa
QUALITY-DRIVEN ORGANIZATIONS (STUDY QUESTION 3) 159.
__________ indicates conformance with a rigorous set of international quality standards. A. Consumer protection certification. B. International Q certification. C. AAA certification. D. International customer service certification. E. ISO certification. E KT Fa
160.
Organizations that want to compete in the world marketplace as “world-class companies” can gain a competitive advantage by having their operations achieve __________. A. Consumer protection certification. B. International Q certification. C. ISO certification. D. AAA certification. E. Manufacturing supply certification. C GT Ap
161.
To receive ISO certification, companies must __________ and __________. A. Undergo extensive managerial training be approved by the Management Development Institute. B. Receive governmental approval to apply for the certification exam have at least 90% of the employees pass the certification exam. C. Refine and upgrade quality in all operations . undergo a rigorous assessment by outside auditors to determine if quality standards are met. D. Apply for membership in the International Society for Operations (ISO) receive approval from the ISO membership committee. E. Increase sales for three years in a row decrease customer complaints in each year. C GT Ap
140
Schermerhorn & Wright: Management
Total Quality Management 162.
The term total quality management is used to describe the process of __________. A. Training managers to monitor quality and then making them responsible for overall quality in their areas of responsibility. B. Managing with an organization-wide commitment to continuous improvement, product quality, and customer needs. C. Reducing the need for quality inspections by training employees to be quality conscious. D. Producing holistic work environments. E. Designing and manufacturing quality products. B KT Fa
163.
Which of the following characteristics does NOT accurately describe the process of total quality management? A. Making quality principles a part of the organization’s strategic objectives. B. Applying quality principles to all aspects of operations. C. Committing the organization to continuous quality improvement. D. Striving to meet customers’ needs by doing things right the first time. E. Committing the organization to the use of self-managing work teams. E KT Fa
164.
Philip Crosby has developed what he calls the “four absolutes” of management for total quality control. Which of the following is NOT one of Crosby’s “four absolutes” of management? A. Quality means conformance to standards. B. Quality comes from defect prevention, not defect correction. C. Quality comes from multiple defect inspections. D. Quality as a performance standard must mean defect-free work. E. Quality saves money. C GT Fa
Quality and Continuous Improvement 165.
W. Edwards Deming’s comprehensive, rigorous, and learning-based approach to quality emphasizes __________. A. Constant innovation, use of statistical methods, and a continuous commitment to up-to-date training. B. Constant correction of defects and termination of employees responsible for the defects. C. Use of statistical methods to fix blame for low quality. D. Use of up-to-date technology to compensate for poorly trained workers. E. Continuous commitment to maximizing corporate profits. A GT Fa
166.
Continuous improvement is the attempt to __________. A. Continually watch quality control to detect errors. B. Maintain the quality advantage by always looking for new ways to improve current performance. C. Look for ways to confirm current production methods. D. Seek competitive marketing opportunities. E. Monitor future production. B KT Fa
Chapter 4: Environment, Organizational Culture and Diversity
141
167.
The basic philosophy of __________ is that organization members should never be satisfied with current performance. A. Performance management. B. Continuous improvement. C. Performance appraisal. D. Supply chain analysis. E. Human resources management. B GT Fa
168.
An important aspect of __________ is the belief that organization members should find ways to serve customer needs more quickly. A. Performance management. B. Performance appraisal. C. Supply chain analysis. D. Human resources management. E. Continuous improvement. E GT Fa
169.
A(n) __________ is a group of employees who meet periodically to discuss ways of improving the quality of their products or services. A. Employee relations team. B. Focus group. C. Product development team. D. Research and design department. E. Quality circle. E KT Fa
170.
The main objective of using a(n) __________ is to have the members assume responsibility for quality and to apply everyone’s full creative potential in achieving it. A. Employee relations team. B. Quality circle. C. Focus group. D. Product development team. E. Research and design department. B GT Fa
171.
Cost savings from improved quality and greater customer satisfaction as well as improved worker morale and commitment are among the benefits that can be provided by a __________. A. Human resources department. B. First-line supervisor. C. Quality circle. D. Focus group. E. Product development team. C GT Ap
142
Schermerhorn & Wright: Management
Quality, Technology, and Design 172.
Modern production systems utilize__________ to better integrate the various aspects of operations as well as to permit modifications to be made quickly and in a cost-efficient fashion. A. Creative decision making. B. Integrative brainstorming sessions. C. Technology. D. Quality circles. E. Strategic management. C GT Fa
173.
Which one of the following characteristics does NOT accurately describe the role that technology plays in the quality aspects of operations? A. Lean production. B. Flexible manufacturing. C. Agile manufacturing. D. Boutique engineering. E. Mass customization. D GT Fa
174.
__________ uses new technologies to streamline systems and allow work to be performed with fewer workers and smaller inventories. A. Flexible manufacturing. B. Mass customization. C. Lean production. D. Agile manufacturing. E. Customized design. C GT Fa
175.
__________ allows processes to be changed quickly and efficiently to produce different products or modifications to existing ones. A. Flexible manufacturing. B. Mass customization. C. Lean production. D. Agile manufacturing. E. Customized design. A GT Fa
176.
Providing individualized products quickly and with the production efficiencies once only associated with the mass production of uniform products can be accomplished by using techniques such as __________ and __________. A. Lean production … individualized marketing. B. Flexible manufacturing … supply chain customization. C. Agile manufacturing … mass customization. D. Quick process design … mass distribution management. E. None of the above answers is correct. C GT Fa
Chapter 4: Environment, Organizational Culture and Diversity
143
177.
Mike’s work focuses on making a difference in quality management from the perspective of how things are produced and at what level of cost and quality. His job is concerned with __________. A. Continuous improvement. B. ISO 9000 certification. C. Crosby’s “four absolutes” of management. D. The Baldrige National Quality Criteria. E. Product design. E GT Ap
178.
Progressive manufacturers that create a design that lowers production costs and improves quality in all stages of production are using a practice known as __________. A. Benchmarking, B. Continuous improvement. C. Design for manufacturing. D. Operations engineering. E. Design for disassembly. C GT Fa
179.
A manufacturing approach that designs products with attention to how their component parts will be recycled when the product life ends is called __________. A. Benchmarking, B. Continuous improvement. C. Design for engineering. D. Product engineering. E. Design for disassembly. E GT Fa
ORGANIZATIONAL CULTURE (STUDY QUESTION 4) 180.
The system of shared beliefs and values that develops within an organization and guides the behaviour of its members is called __________. A. Organizational culture B. Corporate behavioural guidelines. C. Corporate climate. D. Systemic culture. E. Social culture. A KT Fa
181.
Jim is new to the ZYX Organization. He asks his supervisor why production standards are not modified to reflect market competition. His supervisor says, “That is the way we do things around here.” The supervisor’s comment is an example of __________. A. The supervisor’s motto. B. The organizational culture. C. The corporate mission. D. A supervisor’s principle. E. An outdated production manual. B GT Ap
144
Schermerhorn & Wright: Management
What Strong Cultures Do 182.
The internal culture of an organization has the potential to __________. A. Shape attitudes and reinforce common beliefs. B. Direct behaviour. C. Establish performance expectations and the motivation to fulfill them. D. All of the above. E. None of the above. D GT Fa
183.
A strong corporate culture helps an organization because it can do all of the following EXCEPT: A. Provide a clear vision of what the organization is attempting to accomplish. B. Allow individuals to rally around a company vision and work hard to accomplish it. C. Discourage dysfunctional work behaviours. D. Encourage functional work behaviours. E. Ensure market domination and strong profits. E GT Fa
184.
Differences among cultures can be assessed by seeking answers to all of the following questions EXCEPT: A. How tight or loose is the structure? B. What outcomes or results are most highly valued? C. How widespread is empowerment and worker involvement? D. B and C. E. A, B, and C. E MN Ap
185.
Differences among cultures can be assessed by seeking answers to all of the following questions EXCEPT: A. Are decisions change oriented or driven by the status quo? B. What is the climate for risk taking and innovation? C. What is the competitive style, internal and external? D. A and B. E. A, B, and C. E MN Ap
186.
Which of the following statements about strong cultures is/are accurate? A. Strong cultures are clear, well defined, and widely shared among members. B. Strong cultures discourage dysfunctional behaviour and encourage functional behaviours. C. Strong cultures commit members to doing things for and with one another that are in the best interests of the organization. D. A and B. E. A, B, and C. E GT Fa
Chapter 4: Environment, Organizational Culture and Diversity 187.
145
The best organizations with strong cultures will likely do all the following EXCEPT: A. Have a performance orientation. B. Encourage teamwork. C. Discourage risk taking. D. Encourage innovation. E. Make the well-being of people a top management priority. C GT Fa
Levels of Organizational Culture 188.
The two levels of culture in organizations are __________. A. Strategic and operational. B. Functional and dysfunctional. C. Observable and core. D. Core and environmental. E. Rites and rituals. C GT Fa
189.
While walking through the offices during an interview with the marketing director, John notices the way people dress, the arrangement of their offices, and how the employees treat each other when passing in the hallways. This information about the company reflects its __________. A. Structural culture. B. Core culture. C. Observable culture. D. Environmental culture. E. Displayed culture. C GT Ap
190.
Observable culture is seen through which of the following elements of organizational life? A. Strategy, performance, structure, and worker involvement. B. Stories, symbols, heroes, and rites and rituals. C. Stories, relevance, pervasiveness, and strength. D. Rights and obligations. E. Core culture and corporate culture. B GT Fa
191.
Oral histories and tales about dramatic sagas and incidents in the life of the organization reflect the element of observable culture known as __________. A. Norms. B. Stories. C. Heroes. D. Rites and rituals. E. Symbols. B GT Fa
146
Schermerhorn & Wright: Management
192.
__________ are the people who are singled out for special attention in an organization’s observable culture. A. Norms. B. Stories. C. Heroes. D. Rites and rituals. E. Symbols. C GT Fa
193.
As part of the observable culture of an organization, __________ are the ceremonies and meetings that celebrate important occasions and performance accomplishments. A. Norms. B. Stories. C. Heroes. D. Rites and rituals. E. Symbols. D GT Fa
194.
The special use of language and other nonverbal expressions to communicate important aspects of corporate life are the __________ of observable organizational culture. A. Norms. B. Stories. C. Heroes. D. Rites and rituals. E. Symbols. E GT Fa
195.
The underlying assumptions and beliefs that shape and guide the behaviour of organization members and actually give rise to the different aspects of observable culture can be described as the __________. A. Pre-observable culture. B. Human values. C. Core values. D. Rites of passage. E. Behavioural guidelines. C KT Fa
196.
An investment firm is reviewing the performance of a small corporation, noting its track record in product innovation, the quality of work life of employees, and the organization’s degree of involvement in environmental concerns. The investment firm seems to be interested in gathering information about which aspect of the company’s culture? A. Profits. B. Core culture. C. Observable culture. D. Environmental concerns. E. Displayed corporate culture. B GT Ap
Chapter 4: Environment, Organizational Culture and Diversity 197.
147
Highly successful companies typically focus on which of the following core values? A. Strategy, performance, structure, and worker involvement. B. Stories, symbols, heroes, and rites and rituals. C. Performance excellence, innovation, social responsibility, integrity, worker involvement, customer service, and teamwork. D. Symbols, stories, and strategies. E. Observable behaviour, management strategy, mission statement, and strategic objectives. C GT Fa
Value-Based Management 198.
__________ refers to managers who actively help develop, communicate, and enact shared values within an organization. A. Normative guidance. B. Value-based management. C. Executive morality. D. Rules-based leadership. E. Transactional leadership. B GT Fa
199.
The responsibility for value-based management rests with __________. A. Nonsupervisory personnel. B. Lower management. C. Middle managers. D. Top managers. E. All managers and team leaders working at any level of the organization. E GT Fa
200.
Leaders at any level of the organization should promote core values that do all of the following EXCEPT: A. Support key performance objectives. B. Provide clear, consistent ethical anchors. C. Are understood by all members of the organization or group. D. Are accepted by everyone involved. E. Emphasize profit maximization as the only legitimate value of business. E GT Fa
201.
Relevance, integrity, pervasiveness, and strength are four criteria for evaluating __________. A. Value-based management in any work unit or team.. B. Desired outcomes of the organization’s external environment. C. Goals for managerial excellence. D. Qualities for the organization’s strategic objectives. E. Rules of conduct in most organizations. A GT Fa
148
Schermerhorn & Wright: Management
Symbolic Leadership 202.
A __________ is someone who uses symbols well to establish and maintain a desired organizational cultural. A. Communications specialist. B. Business executive. C. Cultural manager. D. Symbolic leader. E. Organizational leader. D KT Fa
203.
Which of the following statements about symbolic leaders is NOT accurate? A. Symbolic leaders both act and talk the language of the organization. B. Symbolic leaders are careful to behave in ways that live up to the espoused core values. C. Symbolic leaders de-emphasize elements of the observable culture. D. Symbolic leaders are ever-present role models for others to emulate and follow. E. Symbolic leaders communicate values in their spoken and written words. C GT Ap
204.
Newly hired workers at Disney World are counselled to always think of themselves as more than employees; they are key “members of the cast.” They are told that Disney is not just any business, that it is an “entertainment” business. This is an example of Disney World’s use of __________. A. Language barriers. B. Disciplinary procedures. C. Language metaphors. D. Company goals. E. Hiring policy. C GT Ap
205.
Good __________ highlight the observable culture by repeatedly telling key stories and frequently using rites and rituals to glorify the performance of the organization and its members. A. Team leaders. B. Chief executive officers. C. Managers. D. Symbolic leaders. E. Chief operating officers. D GT Ap
MULTICULTURAL ORGANIZATIONS AND DIVERSITY (STUDY QUESTION 5) 206.
__________ describe(s) differences among people at work. A. Workforce characteristics. B. Differential attributes. C. Diversity. D. Personality dimensions. E. Alternative characteristics. C KT Fa
Chapter 4: Environment, Organizational Culture and Diversity
149
207.
Which of the following statements does NOT accurately describe an attribute or characteristic of diversity? A. Race and gender are the only diversity dimensions that are relevant to the workplace. B. Diversity includes everyone, including white males. C. Diversity is a potential source of competitive advantage. D. The way people are treated at work reflects the organization’s culture. E. Doing the right things in organizational leadership can enable the company to gain competitive advantage through diversity. A GT Fa
208.
The advantages of diversity are gained only when diversity is leveraged through __________ and __________. A. Planning … controlling. B. Training … supportive human resource practices. C. Training … organization development. D. Leading … supportive human resource practices. E. Teamwork … individual performance excellence. B GT Fa
What Is a Multicultural Organization? 209.
In the context of organizational culture, __________ refers to the degree to which the organization is open to anyone who can perform a job, regardless of his or her race, sexual preference, gender, or other diversity attribute. A. Pluralism. B. Imperialism. C. Universalism. D. Inclusivity. E. Organizational openness. D GT Fa
210.
__________ refers to inclusivity, pluralism, and respect for diversity in the workplace. A. Cultural diversity. B. Cultural management. C. Multiculturalism. D. A strong culture. E. An ethical culture C KT Fa
211.
__________ organizations are based on pluralism and operate with inclusivity and respect for diversity. A. Multicultural organizations. B. Pluralistic organizations. C. Structurally designed organizations. D. Conflict resolution companies. E. Technologically advanced organizations. A GT Fa
150
Schermerhorn & Wright: Management
212.
__________ display characteristics such as structural integration, informal network integration, and minimum intergroup conflict. A. Pluralistic organizations. B. Structurally designed organizations. C. Conflict resolution companies. D. Multicultural organizations. E. Technologically advanced organizations. D GT Fa
213.
Denise is applying for a position with a medium-sized, but rapidly growing insurance company. She notices that there are several senior citizens and female managers of different racial backgrounds. They all seem to be very supportive of the other workers. Denise surmises that this company must be __________. A. A dysfunctional place to work. B. A good organization for women. C. A minority-owned organization. D. A multicultural organization. E. An ethically sound organization. D GT Ap
Organizational Subcultures 214.
__________ are common to groups of people with similar values and beliefs based upon shared work responsibilities and personal characteristics. A. Self-managed teams. B. Work teams. C. Subcultures. D. Social groups. E. Separate cultures. C KT Fa
215.
__________ is the belief that one’s membership group or subculture is superior to all others. A. Pluralism. B. Inclusivity. C. The glass ceiling. D. Multiculturalism. E. Ethnocentrism. E GT Fa
216.
The subcultures that can be found in an organization include all of the following EXCEPT: A. Occupational subcultures. B. Functional subcultures. C. Generational subcultures. D. Racial subcultures. E. Divisional subcultures. E GT Fa
Chapter 4: Environment, Organizational Culture and Diversity
151
217.
Which of the following is NOT a subculture that can be found in an organization? A. Generational subcultures. B. Ethnic subcultures. C. Educational subcultures. D. Racial subcultures. E. Gender subcultures. C GT Fa
218.
Which of the following statements provides an accurate description about subcultures? A. Functional subcultures are composed of “salaried professionals” such as lawyers, scientists, engineers, and accountants. B. Occupational subcultures refer to people who develop strong identities with their work groups and specific areas of task responsibilities C. Ethnic subcultures reflect gaps that exist between people who grew up and are growing up during different periods of history, and whose values have thus evolved under different influences. D. Gender subcultures reflect differences in the values and beliefs of women and men. E. Functional subcultures consist of different ethnic and racial groups that work well together. D GT Ap
Challenges Faced by Minorities and Women 219.
One of the following statements does NOT correctly describe the challenges faced by minorities. Which statement is the incorrect statement? A. Differences are often distributed unequally across organizational levels or among work functions. B. Minority members face special economic and work challenges, and these challenges are not always highly visible. C. In the United States of America, disabled workers have benefited as much as other groups have from the economic growth of the 1990s. D. Even though organizations are changing, most senior executives in large organizations are older, white, and male. E. More workforce diversity is likely to exist at lower and middle levels of most organizations than at the top. C GT Ap
220.
The __________ is a hidden barrier that limits the advancement of minorities in some organizations. A. Minority promotion policy. B. Affirmative action procedure. C. Diversity restraint. D. Supply chain. E. Glass ceiling. E GT Fa
152
Schermerhorn & Wright: Management
221.
The daily work challenges that can be faced by minority subcultures in organizations include all of the following EXCEPT: A. Misunderstanding. B. Lack of sensitivity. C. Sexual harassment. D. Clear advancement paths. E. Pay discrimination. D GT Ap
222.
__________ occurs when members of minority cultures display majority culture characteristics that seem to be necessary for success in the workplace. A. Cultural denial. B. Biculturalism. C. Acceptance of majority rule. D. Cultural integration. E. Cultural subordination. B GT Fa
Managing Diversity 223.
__________ is the process of building an organizational culture that allows all members, minorities and women included, to reach their full potential. A. Inclusion management. B. Managing diversity. C. Workplace management. D. Environmental development. E. High involvement management. B KT Fa
224.
As the newly appointed manager of a one of the major divisions of a large company, Barbara stated that one of her objectives was to create a workplace environment that allows all kinds of people to reach their full potential in the pursuit of the division’s objectives. Barbara’s statement indicates that she is committed to __________. A. Impressing the company’s top executives. B. Management by objectives. C. Managing the natural environment. D. Managing diversity. E. Human resource management. D KT Ap
225.
__________ is a leadership approach to diversity in which leaders commit the organization to hiring and advancing minorities and women. A. Advancing action. B. Subcultural management. C. Human resource management. D. Valuing diversity. E. Managing diversity. A KT Fa
Chapter 4: Environment, Organizational Culture and Diversity
153
226.
__________ is a leadership approach to diversity in which leaders commit the organization to education and training programs designed to help people better understand and respect individual differences. A. Affirmative action. B. Personality education. C. Human resource training. D. Valuing diversity. E. Managing diversity. D GT Fa
227.
__________ is a leadership approach to diversity in which leaders commit to changing the organizational culture to empower and include all people. A. Cultural change management. B. Organization development. C. Valuing diversity. D. Affirmative action. E. Managing diversity. E GT Fa
228.
Which of the following statements about a diverse workforce is NOT true? A. A diverse workforce offers a rich pool of talents, ideas, and viewpoints that are useful for solving the complex problems of highly competitive and often-uncertain environments. B. A diverse workforce presents little management challenge in addressing various human resources issues. C. A diverse workforce is best aligned with the needs and expectations of a diverse customer and stakeholder base. D. A diverse workforce makes good business sense in all contexts of organizational action. E. A diverse workforce helps an organization to better understand and serve the needs of the global marketplace. B GT Ap
229.
In contemporary business, the concept of inclusiveness involves all of the following elements EXCEPT: A. Valuing diversity and building multicultural organizations that include everyone. B. Realizing that the human talent pool includes older workers, persons with disabilities, and women. C. Valuing the talents of persons of various religious, cultural and national backgrounds, and persons who are not heterosexual. D. Drawing on diversity to better align organizations with the challenges and opportunities of the modern environment. E. Ensuring that all stakeholders receive their fair share of the “corporate pie”. E GT Ap
Essay Questions
154
Schermerhorn & Wright: Management
230.
Describe the primary elements of the general environment and of the specific environment. Suggested Answer: The general environment consists of all the background conditions in the external environment of an organization. The primary elements of the general environment include the following: • • • • •
Economic conditions –– health of the economy in terms of inflation, income levels, gross domestic product, unemployment, and job outlook. Social-cultural conditions –– norms, customs, and values on such matters as human rights; trends in education and related social institutions; as well as demographic patterns in society. Legal-political conditions –– prevailing philosophy and objectives of the political party or parties running the government, as well as laws and government regulations. Technological conditions –– development and availability of technology, including scientific advancements. Natural environment conditions –– nature and conditions of the natural environment, including levels public concern expressed through environmentalism.
The specific environment (or task environment) consists of the actual organizations, groups, and persons with whom an organization interacts and conducts business. The primary elements of the specific environment are the organization’s important stakeholders, which include the following: • • • • •
231.
Customers ––consumer or client groups, individuals, and organizations that purchase the organization’s goods and/or use its services. Suppliers ––providers of the human, information, and financial resources and raw materials needed for the organization’s operations. Competitors –– organizations that offer the same or similar goods and services to the same consumer or client groups. Regulators –– government agencies and representatives, at the local, state, and national levels, that enforce laws and regulations affecting the organization’s operations. Investors/owners ⎯ individuals, groups, and other organizations/institutions that hold an equity interest in the business.
Explain why quality is important in a customer-driven organization. Suggested Answer: In a customer–driven organization, everything is focused on serving and satisfying, if not delighting, the customer. Customers demand value-pricing for high-quality goods and services that meet their needs and which can be acquired with only short waiting times. Indeed, the practical lessons from businesses have repeatedly reinforced this assertion. Successful businesses always protect their reputations for quality products and they always treat their customers right. The results of a Harvard Business Review survey of American businesses rank customer service and product quality as the most important goals with respect to organizational success. Additionally, a Michelson & Associates survey ranked poor services and product dissatisfaction as the top two reasons why customers abandon a retail store.
Chapter 4: Environment, Organizational Culture and Diversity 232.
155
What is organizational culture? What is a strong culture? Why is a strong culture important for organizational success in the 21st century business environment? Suggested Answer: Organizational culture (or corporate culture) is the system of shared beliefs and values that develops within an organization and guides the behaviour of its members. The best organizations have strong cultures that are clear, well defined, and widely shared as they discourage dysfunctional work behaviours and encourage positive ones. Strong and positive cultures are performance-oriented, emphasize teamwork, allow for risk taking, encourage innovation, and make the well-being of people a top management priority. Strong, positive organizational cultures also promote progressive leadership and worker empowerment, value diversity, and ensure the maintenance of high ethical standards. A strong culture is important for organizational success in the 21st century business environment because of the need to respond effectively to competitive demands and a rapidly changing environment. While all organizations face competitive demands and changing times, they face widely varying problems and opportunities and there is no one best way to deal with them. The key to success is finding the best design to master the unique situational needs and challenges for each organization, and to support that design with a strong and positive culture.
233.
Consider the high school you are attending. Describe the institution’s observable culture and its core culture. In answering the “observable culture” part of this question, students should describe the stories, heroes, rites and rituals, and symbols that uniquely characterize the institution. For example, stories could relate to the information about the institution that is passed on to prospective new students when they tour campus, or the information that is passed among students regarding their most favorite and least favorite teachers. Outstanding teachers or excellent students might be example of heroes. Rites and rituals might include student award convocations and commencement ceremonies. Symbols could include the school’s mascot or nickname. In answering the “core culture” part of this question, students might draw on their knowledge of the institution’s mission statement or on their perceptions of what the college/university as a whole is committed to accomplishing. Students might also approach this part of the question from the perspective of evaluating the extent to which the school possesses the core values that are typically associated with highly successful organizations ⎯ namely, performance excellence, innovation, social responsibility, integrity, employee involvement, customer/client service, and teamwork.
234.
What is diversity? Explain how diversity can benefit an organization. Suggested Answer: Diversity describes differences among people at work, including age, race, ethnicity, gender, physical ability, sexual orientation, religious beliefs, education, experience, and family status, among others. Diversity is a potential source of competitive advantage, offering organizations a mixture of talents and perspectives for dealing with the uncertainties and
156
Schermerhorn & Wright: Management complexities of the 21st century business environment. The benefits of diversity can be realized through three different approaches to diversity leadership: affirmative action, valuing diversity, and managing diversity. Affirmative action, in which leadership commits the organization to hiring and advancing minorities and women, is the least beneficial of the three approaches in terms of competitive advantage. Valuing diversity, in which leadership commits the organization to education and training programs designed to help people better understand and respect individual differences, is of intermediate value to the organization in terms of competitive advantage. Managing diversity, in which leadership commits to fully utilizing the assets of a diverse workforce, provides the greatest value with respect to competitive advantage.
Chapter 5:
GLOBAL DIMENSIONS OF MANAGEMENT True/False Questions CHAPTER INTRODUCTION 1.
In the 21st century economy, business leaders must think and act globally in the pursuit of competitive advantage. T GT Fa
2.
The global economy has significant implications for everyday living and careers just as it has for business investments. T GT Ap
INTERNATIONAL MANAGEMENT AND GLOBALIZATION (STUDY QUESTION 1) 3.
The global economy is based on worldwide interdependence of resource supplies, product markets, and business competition. T KT Fa
4.
Globalization refers to the process of growing interdependence among resource supplies, product markets, and business competition on a worldwide basis. T KT Fa
5.
Management activity that takes place in organizations with business interests in more than one country is known as transregional management. F KT Fa
6.
A global manager is culturally aware and informed on international issues. T KT Fa
7.
Global managers are informed about international developments, transnational in outlook, competent in working with people from different cultures, and always aware of regional developments in a changing world. T KT Fa
Europe
157
158
Schermerhorn & Wright: Management
8.
The European Union is an alliance of European countries that have agreed to promote mutual economic growth by removing barriers that previously limited cross-border trade and business development. T KT Fa
9.
The European Union is a group of European countries that are linked through favourable trade and customs laws which are intended to facilitate the free flow of workers, good and services, and investments across national boundaries. T GT Fa
10.
A key agreement among the member nations of the European Union was to restrict government procurement of goods and services in a member nation to businesses headquartered in that member nation. F GT Fa
11.
Lifting competitive barriers in banking and insurance, creating uniform minimum technical product standards, and creating a common currency are three of the key agreements among member nations of the European union. T GT Fa
12.
The euro is the new common currency of the European Union. T KT Fa
13.
The expected benefits of a common European currency include higher productivity, lower inflation rates, and steady growth in the member countries. T GT Ap
The Americas 14.
The North American Free Trade Agreement (NAFTA) largely frees the flow of goods and services, workers, and investments between the U.S. and Canada, but limits them between the United States and Mexico. F KT Fa
15.
The North American Free Trade Agreement has created a market of potential consumers larger than its rival, the European Union. T GT Fa
16.
Concerns about the potential loss of jobs to Mexico because of the North American Free Trade Agreement caused some Canadian and Unites States politicians to call for increased reliance on maquiladoras. F GT Fa
17.
Foreign manufacturing plants that are allowed to operate in Mexico with special privileges in return for employing Mexican labour are called maquiladoras. T KT Fa
Chapter 5: Global Dimensions of Management
159
18.
Critics of maquiladoras say they create high social costs for Mexican border towns because of the increased employment and prosperity among Mexican workers F GT Fa
19.
The Free Trade Area of the Americas (FTAA) is a proposed free-trade zone that would stretch from Point Barrow, Alaska to Tierra del Fuego, Chile. T GT Fa
Asia and the Pacific Rim 20.
Malaysia is the world’s largest consumer marketplace and a major exporter of clothing, computers, electrical parts and components, telecommunications equipment, and sporting goods. F GT Fa
21.
Currently, only China, Japan, and South Korea are significant economic powers in Asia and the Pacific Rim. F GT Fa
22.
The Asian economy at the beginning of the 21st century may be characterized as a megamarket with limited long-term potential in the global marketplace because of severe financial problems. F GT Fa
23.
Asian countries are the world’s top market for cars and telecommunications equipment. T GT Fa
24.
Low-cost labour and the growing availability of highly skilled brainpower are business advantages in Asian countries. T GT Fa
Africa 25.
Africa is a region of ethnic turmoil and civil strife where numerous countries are struggling for peace and economic development. T GT Fa
26.
Extreme poverty and a continuing AIDS epidemic are key factors that both discourage international business in parts of Africa and demonstrate the need for business investments and foreign aid. T GT Fa
27.
A recent Harvard University study indicates that Africa’s contextual problems are manageable, and in fact create opportunities for international business. T GT Fa
28.
The South African Free Trade Association links 14 countries of southern Africa in trade and economic development efforts. F GT Fa
160
Schermerhorn & Wright: Management
29.
Post-apartheid South Africa is experiencing economic recovery and attracting foreign investors to an economy that accounts for half the African continent’s purchasing power. T GT Fa
INTERNATIONAL BUSINESS CHALLENGES (STUDY QUESTION 2) 30.
International businesses conduct for-profit transaction of goods and services across national boundaries. T KT Fa
Why Companies Go International 31.
Businesses expand their operations to the international marketplace in order to increase profits and gain access to customers, suppliers, capital, and labour. T GT Fa
32.
Businesses go international to gain new markets to sell products and to enhance profit potential but not to increase access to raw materials, lower-cost labour, or financial resources. F GT Fa
Forms of International Business 33.
Global sourcing, exporting/importing, and licensing/franchising are market entry strategies for conducting international business. T GT Fa
34.
Market entry strategies involve the sale of goods or services to foreign markets but do not require major capital investments. T GT Fa
35.
Direct investment strategies require major capital commitments but create rights of ownership and control over foreign operations. T GT Fa
36.
Joint ventures and wholly owned subsidiaries are direct investment strategies for conducting international business. T GT Fa
37.
Global sourcing is the process of purchasing materials, component parts, or business services from different countries around the world. T KT Fa
38.
Importing enables a company to enter the international market by selling locally-made products in foreign markets, whereas exporting refers to buying foreign-made products and selling them in domestic markets. F KT Fa
Chapter 5: Global Dimensions of Management
161
39.
A licensing agreement is a form of international business through which a foreign company pays a fee for the rights to manufacture or sell another firm’s products in a specified region. T KT Fa
40.
Franchising is a form of licensing in which a foreign firm buys the rights to use another’s name and operating methods in its home country. T KT Fa
41.
Joint ventures are co-ownership arrangements that pool resources and share risks and control of business operations. T KT Fa
42.
In selecting joint venture partners in a foreign country, a company should choose a partner with future expansion possibilities, shared interests in meeting customer needs, a strong local market for its own products, and good profit potential. T MN Fa
43.
A foreign subsidiary is a local operation that is completely owned and controlled by a foreign firm. T KT Fa
44.
A greenfield venture is a direct investment in a startup operation, and may be used to establish a foreign subsidiary. T GT Fa
Complications in the Global Business Environment 45.
Foreign companies operating in the United States may encounter quite different laws than they are accustomed to in their home countries. These different laws pertain to antitrust, occupational safety and health, equal employment opportunity, and sexual harassment T GT Fa
46.
Common legal problems in international business involve incorporation practices and business ownership; negotiating and implementing contracts with foreign parties; protecting patents, trademarks, and copyrights; and handling foreign exchange restrictions. T GT Fa
47.
The World Trade Organization (WTO) is a global institution that was established to promote free trade and open markets around the world. T KT Fa
48.
Global greasing refers to members of the World Trade Organization giving each other the most favourable treatment for imports and exports. F KT Fa
49.
Protectionism refers to tariffs and favourable treatment to help shelter domestic businesses from foreign competition. T KT Fa
162
Schermerhorn & Wright: Management
MULTINATIONAL CORPORATIONS (STUDY QUESTION 3) 50.
A multinational corporation is a business firm with extensive international operations in more than one foreign country. T KT Fa
51.
A multinational organization has a nonprofit mission and its operations are worldwide. T GT Fa
Types of Multinational Corporations 52.
A supernational corporation is a company that operates worldwide without being identified with one national home. F KT Fa
53.
Transnational corporations view the entire world as their domain for acquiring resources, locating production facilities, and marketing goods and services. T GT Ap
54.
Transnational corporations seek total integration of global operations, distribute work among worldwide points of excellence, and employ senior executives from many different countries. T GT Ap
55.
Transnational corporations use a home-based perspective to operate across borders and make major decisions. F GT Ap
Pros and Cons of Multinational Corporations 56.
Mutual benefits of MNC/host-country relationships include shared opportunities with the potential for growth, income, learning, and development. T GT Fa
57.
Technology transfer, capital development, increased employment opportunities, and development of local resources are key benefits to the host country of a multinational corporation. T GT Fa
58.
Host-country complaints about multinational corporations (MNCs) include foreign exchange restrictions, pressure to buy raw materials at inflated prices, failure to protect intellectual property, and failure to uphold contracts. F GT Fa
59.
Multinational corporations complain that host countries have excessive profits, engage in economic domination, interfere with local government, hire the best local talent, limit technology transfer, and disrespect local customs F GT Fa
Chapter 5: Global Dimensions of Management 60.
163
Multinational corporations are often criticized at home for: diverting labour-intensive jobs from the domestic labour force to foreign labour markets, diverting capital investments away from the domestic market, and allowing or encouraging corrupt practices in their foreign subsidiaries. T GT Fa
Ethical Issues for Multinational Operations 61.
Corruption involves engaging in illegal practices to further one’s business interests. T KT Fa
62.
In Canada, the Corruption of Foreign Public Officials Act makes it illegal for Canadian firms to engage in corrupt practices overseas. T GT Fa
63.
Corrupt practices of MNCs were all but eliminated by the Canadian Corruption of Foreign Public Officials Act, which was unanimously hailed as a much needed law. F GT Fa
64.
A sweatshop employs workers at very low wages and often in poor working conditions. T KT Fa
65.
Child labour involves the full-time employment of children for work that is normally performed by adults. T KT Fa
66.
The use of child labour has been effectively eliminated as an ethical issue that faces managers of MNCs. F GT Fa
67.
The world’s citizenry increasingly expects global corporations to respect the natural environment, pursue safe industrial practices, and pursue sustainable development. T GT Ap
68.
Sustainable development places greater importance on the needs of the present generation than on the needs of future generations. F KT Fa
69.
ISO 14000 refers to a set of certification standards for responsible environmental practices and sustainable development throughout the world. T KT Fa
CULTURE AND GLOBAL DIVERSITY (STUDY QUESTION 4) 70.
Culture is the shared set of beliefs, values, and patterns of behaviour common to a group of people. T KT Fa
164
Schermerhorn & Wright: Management
71.
Culture shock is the tendency to view one’s culture as superior to others. F KT Fa
72.
Ethnocentrism is the confusion or discomfort that someone may experience when in an unfamiliar culture. F KT Fa
73.
Self-awareness and reasonable sensitivity are the basic building blocks of cultural awareness. T GT Fa
74.
Confusion, small victories, the honeymoon, irritation/anger, and reality are the sequential stages that a person goes through in adjusting to a new culture. T MN Fa
Popular Dimensions of Culture 75.
The popular dimensions of culture include spoken language, use of interpersonal space, and time orientation, but not religion or the role of contracts and agreements. F GT Fa
76.
High-context cultures are those in which most communication takes place via the spoken or written word. Low-context cultures are those in much communication takes place through nonverbal and situational cues in addition to the written or spoken word. F KT Fa
77.
Arabs and Latin Americans prefer closer interpersonal space in terms of communication whereas Americans prefer wider interpersonal space in communication. T GT Fa
78.
In monochronic cultures time is used to accomplish many different things at once. F KT Fa
79.
In polychronic cultures people tend to do one thing at a time. F KT Fa
80.
While religion is a major influence on many people’s lives, it provides little ethical and moral guidance for conducting business in different cultures, and has little, if any, impact on business practices regarding dress, food, and interpersonal behaviour. F GT Fa
81.
In low-context cultures, contracts tend to be viewed as binding agreements; in high-context cultures, written contracts continue to emerge and are modified as the parties work together. T GT Ap
Values and National Cultures 82.
The importance of Geert Hofstede’s research lies in drawing attention to the impact that differences in national culture have on international management. T GT Fa
Chapter 5: Global Dimensions of Management
165
83.
Power distance, uncertainty avoidance, individualism-collectivism, masculinity-femininity, and time orientation are the key dimensions in Geert Hofstede’s framework for comparing value differences in national cultures. T GT Fa
84.
The power distance dimension in Hofstede’s framework for comparing national cultures is defined as the degree to which a society accepts or rejects the unequal distribution of power among people in organizations and the institutions of society. T GT Fa
85.
In Hofstede’s framework for comparing national cultures, uncertainty avoidance refers to the degree to which a society is uncomfortable with risk, change, and situational uncertainties. T GT Fa
86.
In Hofstede’s framework for comparing national cultures, individualism-collectivism concerns the degree to which a society values assertiveness and material concerns versus greater concerns for human relationships and feelings. F GT Fa
87.
The masculinity-femininity dimension of Hofstede’s study of national cultures refers to the degree to which a society emphasizes individual accomplishments and self-interests, versus the collective accomplishments and the interests of groups. F GT Fa
88.
According to Hofstede’s framework for comparing national cultures, time orientation refers to the degree to which a society emphasizes short-term considerations versus greater concern for the future. T GT Fa
89.
Workers from high power distance cultures will likely exhibit disrespect for people in authority, and workers in collectivistic societies are likely to emphasize personal accomplishments and selfinterests. F GT Ap
Understanding Cultural Diversity 90.
Fons Trompenaars’s framework for identifying systematic cultural differences focuses on the way relationships are handled among people, attitudes toward time, and attitudes toward the environment. T GT Fa
91.
According to Fons Trompenaars, universalism versus particularism is the degree to which a culture emphasizes rules and consistency in relationships, or accepts flexibility and the bending of rules to fit circumstances. T GT Fa
166
Schermerhorn & Wright: Management
92.
In Fons Trompenaars’s view, individualism versus collectivism is the degree to which a culture emphasizes individual freedoms and responsibilities in relationships, or focuses more on group interests and consensus. T GT Fa
93.
In Fons Trompenaars’s framework, neutral versus affective is the degree to which a culture emphasizes focused and in-depth relationships, or broader and more superficial ones. F GT Fa
94.
According to Fons Trompenaars, specific versus diffuse is the degree to which a culture emphasizes objectivity and reserved detachment in relationships, or allows for more emotionality and expressed feelings. F GT Fa
95.
According to Fons Trompenaars, achievement versus prescription is the degree to which a culture emphasizes an earned or performance-based status in relationships, or awards status based on social standing and nonperformance factors. T GT Fa
96.
The sequential view of time refers to a culture that views time as linear with a sense of urgency in moving from present to future. F GT Fa
97.
The synchronic view of time refers to a culture that views time as a continuous and passing series of events that are recycled. F GT Fa
98.
In Fons Trompenaars’s view, people in inner-directed cultures tend to view themselves as separate from nature. T GT FA
99.
According to Fons Trompenaars’s cultural framework, people in outer-directed cultures tend to view themselves as part of nature. T GT Fa
MANAGEMENT ACROSS CULTURES (STUDY QUESTION 5) 100.
The study of how management practices systematically differ across cultures or countries is called comparative management. T KT Fa
101.
Global managers should be comfortable with cultural diversity; quick to find opportunities in unfamiliar settings; and able to utilize economic, social, technological, and other forces for the benefit of the organization. T GT Fa
Chapter 5: Global Dimensions of Management
167
Planning and Controlling 102.
Currency risk refers to potential loss due to fluctuating exchange rates. T KT Fa
103.
Political risk is the potential loss of one’s investment in or managerial control of a foreign asset due to changes in the host country’s political environment. T KT Fa
104.
Forecasting the probability of disruptive events that may threaten the security of a foreign investment is referred to as foreign instability analysis. F KT Fa
Organizing and Leading 105.
The global area structure is an organizing option that gives worldwide responsibilities to product group managers, who are assisted by area specialists on the corporate staff.. F GT Fa
106.
The global product structure is an organizing option that arranges production and sales functions into separate geographical units F GT Fa
107.
Expatriates are employees who live and work in foreign countries on short-term or long-term assignments. T KT Fa
108.
According to the text, a high degree of self-awareness and cultural sensitivity and a real desire to live and work abroad are essential to the success of employees accepting overseas assignments. However, family flexibility and support and technical competence in one’s job are of only minimal relevance. F GT Fa
Are Management Theories Universal? 109.
Geert Hofstede concludes that North American management theories can be applied universally overseas because they have been proven to be successful in the North America. F GT Fa
110.
One of the concerns of multinational corporations is whether accepted North American management practices and theories are appropriate for use as models in foreign countries. Hofstede’s research in this area indicates that North American theories are still ethnocentric. T GT Fa
111.
North American motivation theories are highly applicable in individualistic cultures and participative concepts of leadership are more transferable to cultures with low power distance scores. T GT Ap
168
Schermerhorn & Wright: Management
112.
The Japanese approach to management emphasizes job enrichment and focuses on restructuring individual jobs to suit individual needs. F GT Fa
113.
Japanese firms utilize practices that reflect cultural traditions such as long-term orientation, collectivism, and high power distance. T GT Fa
Global Organizational Learning 114.
Companies that believe in global organizational learning realize that businesses around the world have much to share with and learn from one another. T GT Ap
115.
In international businesses with ethnocentric attitudes, managers tend to believe that the best managerial approaches are always found at home. T KT Fa
116.
In international businesses with polycentric attitudes, managers actually value talent and best practices from all over the globe. F KT Fa
117.
In international businesses with geocentric attitudes, managers respect the knowledge and practices of locals and allow them to largely run the operation in their countries. F KT Fa
118.
To promote global organizational learning, organizations and their members should be alert, open, inquiring, and cautious regarding the potential merits of management practices found in other countries and how they are affected by cultural variables. T GT Ap
Multiple Choice Questions CHAPTER INTRODUCTION 119.
Which of the following statements accurately describe the implications of globalization? A. Human beings live and work in a global economy. B. International opportunities have important implications for businesses and their employees. C. National boundaries are rapidly blurring as businesses of all types and sizes compete globally. D. A and B. E. A, B, and C. E KT Fa
Chapter 5: Global Dimensions of Management
169
INTERNATIONAL MANAGEMENT AND GLOBALIZATION (STUDY QUESTION 1) 120.
The worldwide interdependence of resource supplies, product markets, and business competition characterizes the age of __________. A. Trans-Asian management. B. The European Union. C. Free trade. D. A global economy. E. The multinational economy. D KT Fa
121.
The global economy is characterized by the __________. A. Worldwide dependence of resource supplies, product markets, and business competition. B. Worldwide independence of resource supplies, product markets, and business competition. C. Worldwide interdependence of resource supplies, product markets, and business competition. D. Worldwide distribution of resource supplies, product markets, and business competition. E. Worldwide exploitation of resource supplies, product markets, and business competition. C GT Fa
122.
__________ refers to the process of growing interdependence among resource supplies, product markets, and business competition on a worldwide basis. A. International management. B. Transnational interdependence. C. Globalization. D. Global management. E. The multinational economy. C KT Fa
123.
Management activity that takes place in organizations with business interests in more than one country is known as __________. A. International management. B. Transnational interdependence. C. Globalization. D. Trans-regional management. E. Multinational economics. A KT Fa
124.
__________ is culturally aware and informed on international issues. A. A cultural arbiter. B. The average tourist. C. A global manager. D. A and B. E. A and C. C KT Fa
170
Schermerhorn & Wright: Management
125.
Which of the following does NOT describe the characteristics of global managers? A. Being informed about international developments B. Being competent in working with people from different cultures C. Being transnational in outlook D. Being focused on domestic market demands E. Being aware of regional developments in a changing world. D KT Fa
Europe 126.
__________ is a political and economic alliance of European countries. A. European Unified Countries Pact. B. European Free Trade Organization. C. European International Association. D. European Favoured Nation Agreement. E. European Union. E GT Fa
127.
The European Union is an alliance of European countries that have __________. A. Signed a mutual defense treaty. B. Agreed to promote mutual economic growth by removing trade barriers. C. Created an international organization to represent the rights and interests of workers. D. Formed a political alliance to overthrow hostile governments. E. Decided to promote cultural exchanges. B KT Fa
128.
The __________ is/are comprised of European countries linked together through favourable trade and customs laws to facilitate the free flow of workers, goods and services, and investments across national boundaries. A. European Countries. B. European Free Trade Organizations. C. European International Association. D. European Union. E. European Foreign Countries. D GT Fa
129.
Which of the following are competitive implications for the European Union? A. Free flow of workers, goods and services, and investments across national boundaries. B. Each EU country has access to a market slightly smaller than the United States. C. Unfavourable trade and customs laws. D. All of the above. E. None of the above. A GT Ap
Chapter 5: Global Dimensions of Management
171
130.
Important business and economic agreements among the EU countries include all the following EXCEPT: A. Eliminating frontier controls and trade barriers. B. Creating uniform minimum technical product standards. C. Opening government procurement to businesses from all member countries. D. Discouraging a common currency among members. E. Unifying financial regulations. D GT Fa
131.
Which of the following is NOT one of the agreements among the member nations of the European Union? A. Lifting competitive barriers in banking and insurance. B. Restricting government procurement of a member nation to businesses headquartered in that member nation.. C. Eliminating frontier controls and trade barriers. D. Creating uniform minimum technical product standards. E. Creating a common currency. B GT Fa
132.
The __________ is the new common currency of the European Union. A. Zloty. B. Gold Standard. C. Euro. D. International Dollar. E. EU Franc-Mark. C KT Fa
133.
Which of the following is NOT an expected benefit of a common European currency? A. A common currency will contribute to higher productivity. B. A common currency will produce lower inflation rates. C. A common currency will help create steady growth. D. A common currency will eliminate economic uncertainties. E. A common currency will have political uncertainties. D GT Ap
The Americas 134.
Countries that have joined together to form the North American Free Trade Agreement (NAFTA) include __________. A. Canada, Mexico, and the United States. B. Canada and the United States. C. Canada and Mexico. D. Mexico and the United States. E. Canada, Greenland, and the United States. A KT Fa
172
Schermerhorn & Wright: Management
135.
The agreement that largely frees the flow of goods and services, workers, and investments among the United States, Canada, and Mexico is the __________. A. Transcontinental Trade Zone (TTZ). B. Free Trade Area of the Americas (FTAA). C. Northern Hemisphere Free Trade Association (NHFTA) D. North American Free Trade Agreement (NAFTA) E. Integrated Americas Trade Alliance (IATA). D GT Fa
136.
The North American Free Trade Agreement has created a market of potential consumers larger than its rival, the __________. A. European International Association. B. European Union. C. European Foreign Countries. D. European Free Trade Organization. E. North American and European Association. B GT Fa
137.
Which one of the following statements does NOT accurately describe the concerns of the countries that negotiated the North American Free Trade Agreement? A. Canadian firms worried about domination by United States manufacturers. B. American politicians were concerned about the potential loss of jobs to Mexico. C. Mexico feared a further intrusion of U.S. culture and values into Mexico. D. Americans complained that Mexican businesses had lower social standards regarding the use of child labour and protection of the environment. E. Canadians worried about a vast influx of Mexican immigrants into Canada, thereby providing a cheap source of labour. E GT Ap
138.
Foreign manufacturing plants that are allowed to operate in Mexico with special privileges in return for employing Mexican labour are called __________. A. Mexican firms. B. Free-trade organizations. C. Privileged partners. D. Canamericos. E. Maquiladoras. E KT Fa
139.
One of the controversies associated with NAFTA is the operation of manufacturing plants that are allowed to import materials, components, and equipment duty free. These firms are called __________. A. Free trade organizations. B. Privileged. C. Maquiladoras. D. Canamericos. E. Government subsidies. C GT Ap
Chapter 5: Global Dimensions of Management
173
140.
Critics of maquiladoras say they __________. A. Deny jobs to Americans. B. Create high social costs for Mexican border towns. C. Exploit lower-cost Mexican labour. D. All of the above. E. None of the above. D GT Fa
141.
Advocates of maquiladoras say they __________. A. Bring increased employment to Mexicans. B. Bring increased prosperity to Mexicans. C. Help develop more highly skilled local workers. D. A and B. E. A, B, and C. E GT Fa
142.
The __________ is a proposed free-trade zone that would stretch from Point Barrow, Alaska to Tierra del Fuego, Chile. A. Pan-American Free Trade Zone (PAFTZ). B. Free Trade Area of the Americas (FTAA). C. Western Hemisphere Free Trade Association (WHFTA) D. Transcontinental Free Trade Consortium (TFTC). E. Integrated Americas Trade Alliance (IATA). B GT Fa
Asia and the Pacific Rim 143.
__________ is the world’s largest consumer marketplace and a major exporter of clothing, computers, electrical parts and components, telecommunications equipment, and sporting goods. A. Japan. B. China. C. Malaysia. D. The Philippines E. Singapore. B GT Fa
144.
Which of the following statements about Asia and the Pacific Rim is incorrect? A. Historically, Japan has possessed business strength. B. South Korea, Taiwan and Singapore are increasingly prominent in the business community. C. Asian countries represent about half of the global marketplace. D. Business growth in Malaysia and Thailand is already significant. E. Vietnam and the Philippines are making substantial progress with respect to business development. C GT Fa
174
Schermerhorn & Wright: Management
145.
Which of the following characteristics accurately describe Asia and the Pacific Rim? A. Asian countries are the world’s top market for cars and telecommunications equipment. B. Low-cost labour is a business advantage in Asian countries. C. The growing availability of highly skilled brainpower is a business advantage in Asian countries. D. A and B. E. A, B, and C. E GT Fa
146.
Which of the following statements does NOT accurately characterize the Asian economy at the beginning of the 21st century? A. Asia’s economy has suffered from financial problems. B. Asia is a megamarket. C. Asia has achieved superpower status in the world economy. D. Asia is still gaining power in the world economy. E. Asia has limited long-term potential in the global marketplace. E GT Fa
Africa 147.
__________ is a region of contrasts. On the one hand, ethnic turmoil and civil strife are present in many countries. On the other hand, this is a region rich with international business opportunities and natural resources. A. North America. B. Africa. C. Western Europe. D. Northern Europe. E. Australia and New Zealand. B GT Fa
148.
__________ tends to discourage international business in parts of Africa. A. A low economic growth rate in sub-Saharan Africa. B. Poverty. C. A continuing AIDS epidemic. D. All of the above. E. None of the above. D GT Fa
149.
A Harvard University study of the foreign investment environment in Africa concluded that __________. A. Africa’s contextual problems are manageable. B. Africa’s contextual problems should be viewed as opportunities. C. Africa presents a promising market if a company has the necessary managerial and organizational capabilities to deal with Africa’s unique business challenges. D. All of the above. E. None of the above. D GT Fa
Chapter 5: Global Dimensions of Management
175
150.
__________ links 14 countries of southern Africa in trade and economic development efforts. A. South African Free Trade Association (SAFTA). B. South African Development Community (SADC). C. South Africa Union (SAU). D. South Africa Economic Cooperative (SAEC). E. South African Community (SAC). B GT Fa
151.
Which of the following statements accurately describes post-apartheid South Africa? A. South Africa is experiencing economic recovery and attracting outside investors. B. South Africa accounts for half the African continent’s purchasing power. C. Foreign investment in South Africa increased sharply after minority white rule ended. D. A and C. E. A, B, and C. E GT Fa
INTERNATIONAL BUSINESS CHALLENGES (STUDY QUESTION 2) 152.
Conducting for-profit transactions of goods and services across national boundaries is the foundation of __________. A. International business. B. Cross-national management. C. Multinational management. D. Cross-cultural intrapreneurship. E. Transborder entrepreneurship. A KT Fa
Why Companies Go International 153.
Businesses expand their operations to the international market for many reasons. Which of these is NOT a reason offered by your text? A. To expand profit potential. B. To take advantage of decreased governmental control in host countries. C. To increase access to needed raw materials. D. To draw on the financial resources of many nations. E. To have access to lower labour costs. B GT Fa
154.
The reasons for engaging in international business include all of the following EXCEPT: A. Seeking profit potential. B. Seeking new markets to sell products. C. Seeking access to financial resources. D. Seeking access to lower labour costs. E. Seeking to eliminate ethical concerns. E GT Fa
176
Schermerhorn & Wright: Management
Forms of International Business 155.
Which of the following does NOT accurately characterize the conduct of international business? A. Global sourcing, exporting/importing, and licensing/franchising are market entry strategies for conducting international business. B. Market entry strategies involve the sale of goods or services to foreign markets but do not require major capital investments. C. When a business is just getting started internationally, direct investment strategies are the usual way to begin. D. Direct investment strategies require major capital commitments but create rights of ownership and control over foreign operations. E. Joint ventures and wholly owned subsidiaries are direct investment strategies for conducting international business. C GT Fa
156.
The process of purchasing materials, component parts, or business services from different countries around the world is known as __________. A. Exporting/importing. B. Licensing. C. Global sourcing. D. Direct investment. E. Joint venture. C KT Fa
157.
The goal of ____________ is to take advantage of international wage gaps and the availability of skilled labour by contracting for goods and services in low-cost foreign locations. A. Exporting. B. Importing. C. Licensing. D. Global sourcing. E. Direct investment. D GT Fa
158.
The exporting of products involves __________. A. Acquiring foreign-made products and selling them in domestic markets. B. Contracting to provide managerial and technical service to a foreign concern. C. Selling locally made products in foreign markets. D. Making investments in a foreign operation. E. Making direct investments in start-up operations abroad. C KT Fa
159.
The importing of products involves __________. A. Acquiring foreign-made products and selling them in domestic markets. B. Contracting to provide managerial and technical service to a foreign concern. C. Selling locally made products in foreign markets. D. Making investments in a foreign operation. E. Making direct investments in start-up operations abroad. A KT Fa
Chapter 5: Global Dimensions of Management
177
160.
__________ is a form of international business through which a foreign company pays a fee for the rights to manufacture or sell another firm’s products in a specified region. A. An incorporated business. B. A joint venture. C. A multi-company operation. D. A licensing agreement. E. A compensation contract. D KT Fa
161.
__________ is typically grants access to unique manufacturing technology, a special patent, or trademark rights. A. A licensing agreement. B. A compensation contract. C. A joint venture. D. A management contract. E. A foreign subsidiary. A GT Fa
162.
A form of licensing in which a foreign firm buys the rights to use another’s name and operating methods in its home country is called __________. A. A licensing agreement. B. Franchising. C. A joint venture. D. A management contract. E. A foreign subsidiary. B KT Fa
163.
A firm that establishes a direct investment in a foreign country through a co-ownership arrangement that pools resources, shares risks, and shares control of business operations is engaging in __________. A. A licensing agreement. B. A management contract. C. A joint venture. D. An overseas investment fund. E. An import/export arrangement. C KT Fa
164.
Joint ventures are __________ that help participants to gain things through cooperation that otherwise would be difficult to achieve independently. A. Licensing agreements. B. Management contracts. C. Strategic alliances. D. Foreign partnering contracts. E. Import/export arrangements. C GT Fa
178
Schermerhorn & Wright: Management
165.
Which of the following statements provide sound advice for selecting joint venture partners in a foreign country? A. Choose a foreign partner with activities that do not compete with or relate closely to your firm’s major business. B. Choose a foreign partner with a strong local workforce. C. Choose a foreign partner with good profit potential and sound financial standing. D. B and C. E. A, B, and C. D MN Fa
166.
In selecting joint venture partners in a foreign country, a company should do all of the following EXCEPT: A. Choose a partner with future expansion possibilities. B. Choose a partner that is a new entrant to your firm’s line of business. C. Choose a partner with shared interests in meeting customer needs. D. Choose a partner with a strong local market for its own products. E. Choose a partner with good profit potential. B MN Fa
167.
Which one of the following forms of international business transactions represent investments in a local operation that is completely owned and controlled by a foreign firm? A. Licensing agreements. B. A multinational corporation. C. Management contracts. D. Foreign subsidiaries. E. Joint ventures. D KT Fa
Complications in the Global Business Environment 168.
Foreign companies operating in the United States __________. A. May encounter quite different laws than they are accustomed to in their home countries. B. Must deal with antitrust issues that prevent competitors from regularly communicating with one another. C. Must deal with special laws regarding occupational safety and health, equal employment opportunity, and sexual harassment. D. All of the above. E. None of the above. D GT Fa
169.
Common legal problems in international business involve all of the following EXCEPT: A. Environmental pollution restrictions. B. Incorporation practices and business ownership. C. Negotiating and implementing contracts with foreign parties. D. Protecting patents, trademarks, and copyrights. E. Handling foreign exchange restrictions. A GT Fa
Chapter 5: Global Dimensions of Management
179
170.
The __________ is an global institution that was established to promote free trade and open markets around the world. A. United Nations. B. World Trade Organization. C. International Trade Council. D. International Monetary Fund. E. World Court. B KT Fa
171.
Members of the World Trade Organization agree to give each other the most favourable treatment for imports and exports, which is known as__________. A. International political kickbacks. B. Most favoured nation status. C. Global greasing. D. Most favoured bribery status. E. The Import/Export Bank. B KT Fa
172.
Political calls for tariffs and favourable treatment to help shelter domestic businesses from foreign competition is known as __________. A. Free trade. B. Restrictive trade. C. Protectionism. D. Maquiladora. E. Strategic economic bidding. C KT Fa
173.
Which of the following statements about the legal environment of international business is false? A. Legal environments vary widely from country to country. B. Organizations are expected to follow the laws of the host company in which they are operating. C. International businesses have greater difficulty in adapting to host company ways when home and host company laws differ significantly. D. Encouraging international trade and protecting domestic industries can lead to conflicting laws. E. Organizations with operations in many countries are expected to use the laws of the nation where their corporate headquarters is located to guide all operations. E GT Fa
MULTINATIONAL CORPORATIONS (STUDY QUESTION 3) 174.
The best definition of a true multinational corporation is __________. A. Any firm that does business abroad. B. A business firm that has extensive operations in one foreign country. C. Any import/export firm. D. Any joint venture with a foreign firm. E. A business that has extensive international operations in more than one foreign country. E KT Fa
180
Schermerhorn & Wright: Management
175.
__________ have nonprofit missions and operations that span the globe. A. Charities. B. Nonprofit organizations. C. Nongovernmental organizations. D. Multinational organizations. E. Multinational corporations. D KT Fa
Types of Multinational Corporations 176.
A company that operates worldwide without being identified with one national home is known as a __________. A. Multinational corporation. B. Transnational corporation. C. International corporation. D. Antidomestic corporation. E. Supernational corporation. B KT Fa
177.
Transnational corporations view the entire world as their domain for __________ A. Acquiring resources B. Locating production facilities. C. Marketing goods and services D. A and B. E. A, B, and C. E GT Ap
178.
Which of the following statements about transnational corporations is NOT accurate? A. Transnational corporations seek total integration of global operations. B. Transnational corporations try to operate across borders without home-based prejudices. C. Transnational corporations make major decisions from a home-based perspective. D. Transnational corporations distribute work among worldwide points of excellence. E. Transnational corporations employ senior executives from many different countries. C GT Ap
Pros and Cons of Multinational Corporations 179.
Which of the following are mutual benefits for a multinational corporation and a host country? A. Growth. B. Learning. C. Development. D. B and C. E. A, B, and C. E GT Fa
Chapter 5: Global Dimensions of Management
181
180.
All of the following are benefits to the host country of a multinational corporation EXCEPT: A. Technology transfer. B. Reduced tax base. C. Capital development. D. Increased employment opportunities. E. Development of local resources. B GT Fa
181.
Host countries sometimes complain about the presence of multinational firms. These complaints include all of the following EXCEPT: A. MNCs may dominate the local economy. B. MNCs may export jobs to other countries. C. MNCs fail to market products or services needed in the local economy. D. MNCs may fail to transfer their most advanced technology. E. MNCs fail to help domestic firms develop. C GT Fa
182.
Multinational corporations have several complaints about host countries. Which of the following is NOT one of these complaints? A. Foreign exchange restrictions. B. Pressure to buy raw materials at inflated prices. C. Pressure to keep local wage rates low. D. Failure to protect intellectual property. E. Failure to uphold contracts. C GT Fa
183.
Multinational corporations are often criticized at home for __________. A. Diverting labour-intensive jobs from the domestic labour force to foreign labour markets. B. Diverting capital investments away from the domestic market. C. Allowing or encouraging corrupt practices in their foreign subsidiaries. D. All of the above. E. None of the above. D GT Fa
Ethical Issues for Multinational Operations 184.
Engaging in illegal practices to further one’s business interests is known as __________. A. Exploitation. B. Self-management. C. Corruption. D. Self-efficacy. E. An ethical dilemma. C KT Fa
182
Schermerhorn & Wright: Management
185.
In the Canada, the Corruption of Foreign Public Officials Act is controversial because the act __________. A. Makes it hard for foreign firms to do business in the Canada. B. Makes it illegal for Canadian firms to engage in corrupt practices overseas. C. Allows Canadian firms to make payoffs to foreign officials in order to obtain or keep business. D. Makes it legal for foreign firms to use corrupt practices in the Canada. E. Makes it illegal for foreign firms to use corrupt practices in the Canada. B GT Fa
186.
Ethical issues in international business include which of the following? A. Sweatshop operations that employ local labour at low wages and often in poor working conditions. B. Usage of child labour in the manufacture of handmade products. C. Protection of the natural environment. D. All of the above. E. None of the above. D GT Fa
187.
__________ employs workers at very low wages and often in poor working conditions. A. A low-context culture. B. A high-context culture. C. An ethnocentric culture. D. A sweatshop. E. A multinational corporation. D KT Fa
188.
Child labour involves the full-time employment of children for work __________. A. That requires short people. B. That requires small hands. C. That is normally performed by adults. D. A and B. E. A, B, and C. C KT Fa
189.
Which of the following statements about child labour is/are true? A. Child labour is an important international business concern. B. Child labour is a highly controversial issue. C. Initiatives to eliminate child labour have been undertaken by social activists. D. A and B. E. A, B, and C. E GT Fa
Chapter 5: Global Dimensions of Management
183
190.
__________ meets the needs of the present generation without compromising the ability of future generations to meet their needs. A. Generational generosity. B. Sustainable development. C. Intergenerational peace. D. Generational compromise. E. Intergenerational collaboration. B KT Fa
191.
The extent of global environmental protection is affected by all of the following concerns and practices EXCEPT: A. The world’s citizenry increasingly expects global corporations to respect the natural environment and to pursue safe industrial practices. B. Only the highly industrialized nations are worried about industrial pollution of cities, hazardous waste disposal, and depletion of natural resources. C. Activist groups are promoting sustainable development to meet the needs of the present generation without compromising the ability of future generations to meet their own needs. D. ISO 14000 provides guidelines for responsible environmental policies. E. The world’s citizenry is worried about the possibilities of global environmental disasters. B GT Ap
192.
__________ refers to a set of certification standards for responsible environmental practices and sustainable development throughout the world. A. ISO 9000. B. REPSD 9000. C. ISO 14000. D. ISBN 14000. E. REPSD 14000. C KT Fa
CULTURE AND GLOBAL DIVERSITY (STUDY QUESTION 4) 193.
A shared set of beliefs, values, and patterns of behaviour common to a group of people is referred to as __________. A. Culture. B. The legal system. C. The economic system. D. Group character. E. National style. A KT Fa
194.
__________ is the confusion and discomfort a person experiences when in an unfamiliar culture. A. Groupthink. B. Polycentrism. C. Ethnocentrism. D. Culture shock. E. Jet lag. D KT Fa
184
Schermerhorn & Wright: Management
195.
__________ is the tendency to view one’s culture as superior to others. A. Culture shock. B. A monochronic culture. C. Power distance. D. An inner-directed view. E. Ethnocentrism. E KT Fa
196.
Which of the following statements accurately describe the basic building blocks of cultural awareness? A. Self-management and respect. B. Self-awareness and reasonable cultural sensitivity. C. Respect and emotional intelligence. D. Diversity leadership and self-awareness. E. Emotional intelligence and self-management. B GT Fa
197.
Which sequence accurately describes the stages that a person goes through in adjusting to a new culture? A. The honeymoon, confusion, irritation/anger, small victories, and reality. B. Small victories, the honeymoon, reality, irritation/anger, and confusion. C. Confusion, small victories, the honeymoon, irritation/anger, and reality. D. Confusion, irritation/anger, reality, small victories, and the honeymoon. E. The honeymoon, small victories, reality, confusion, and irritation/anger. C MN Fa
Popular Dimensions of Culture 198.
Which of the following statements about language and culture is/are correct? A. Language is a medium of culture. B. Language provides access to the cultural understanding needed to conduct business and develop interpersonal relationships. C. While languages vary around the world, the same language is very consistent in usage from one country to the next. D. A and B. E. B and C. D GT Ap
199.
__________ cultures are those in which most communication takes place via the written or spoken word. A. Low-context. B. Middle-context. C. High-context. D. Corporate. E. Organizational. A KT Fa
Chapter 5: Global Dimensions of Management
185
200.
__________ cultures are those in which much communication takes place through nonverbal and situational cues in addition to the written or spoken word. A. Low-context. B. Middle-context. C. High-context. D. Corporate. E. Organizational. C KT Fa
201.
Which of the following statements provides an incorrect description of the role of interpersonal space in culture? A. Interpersonal space is a silent language of culture. B. Arabs prefer closer interpersonal space in terms of communication. C. Americans tend to prefer wider interpersonal space in communication. D. Latin Americans dislike close interpersonal space in communication. E. In Japan, executive offices are likely to be shared even in major corporations. D GT Fa
202.
In __________, people tend to do one thing at a time. A. Polychronic cultures. B. Monochronic cultures. C. Ethical cultures. D. Time dependent cultures. E. Sensitive cultures. B KT Fa
203.
In __________, time is used to accomplish many different things at once. A. Polychronic cultures. B. Monochronic cultures. C. Ethical cultures. D. Time dependent cultures. E. Sensitive cultures. A KT Fa
204.
As a cultural variable, religion may __________. A. Affect business practices regarding dress, food, and interpersonal behaviour. B. Provide ethical and moral guidance for personal and organizational activities. C. Require business people to be sensitive to the rituals, holy days, and other expectations associated with the host nation’s religious tradition(s). D. B and C. E. A, B, and C. E GT Ap
186
Schermerhorn & Wright: Management
205.
Which of the following is a true statement about the role of contracts in different cultures? A. Cultures vary in their use of contracts and agreements. B. In China a contract is viewed as a final and binding agreement. C. Contracts tend to be viewed as binding agreements in high-context cultures. D. Written contracts are viewed as a starting point in low-context cultures. E. In low-context cultures, written contracts continue to emerge and are modified as the parties work together. A GT Ap
Values and National Cultures 206.
Geert Hofstede has developed a framework consisting of five dimensions for understanding the management implications of broad differences in national cultures. Which one of the following statements accurately identifies these five dimensions? A. Location, certainty avoidance, individualism-collectivism, masculinity-femininity, and religious tradition. B. Power distance, certainty avoidance, individualism-utilitarianism, masculinity-femininity, and religious tradition. C. Political distance, uncertainty avoidance, utilitarianism-collectivism, masculinity-femininity, and time orientation. D. Power distance, uncertainty avoidance, individualism-collectivism, masculinity-femininity, and time orientation. E. Power distance, uncertainty avoidance, individualism-collectivism, totalitarianismdecentralization, and economic opportunities. D GT Fa
207.
Which of the following descriptions best represent Hofstede’s power distance dimension? A. Reliance on group decisions versus reliance on individual decisions. B. Everybody should have equal rights versus the ones who are in control are entitled to privilege. C. Willingness to take risks versus concern with security in life. D. Interdependence versus independence. E. Time is free versus time is money. B GT Fa
208.
Hofstede defined his uncertainty avoidance dimension of national culture as __________. A. The degree to which a society is uncomfortable with risk, change, and situational uncertainties. B. The degree to which a society accepts a hierarchical or unequal distribution of power in organizations. C. The degree to which a society emphasizes individual accomplishments and self-interests versus the collective accomplishments and interests of groups. D. The degree to which a society emphasizes assertiveness and material concerns versus greater concerns for human relationships and feelings. E. The degree to which a society emphasizes short-term considerations versus greater concern for the future. A GT Fa
Chapter 5: Global Dimensions of Management
187
209.
Which of the following descriptions represent Hofstede’s individualism-collectivism dimension? A. All people should have equal rights versus the ones in control are entitled to privilege. B. Willingness to take risks versus concern with security in life. C. Reliance on individual accomplishments and self-interests versus the collective accomplishments and interests of the group. D. Interdependence versus independence. E. Time is free versus time is money. C GT Fa
210.
Which of the following descriptions represent Hofstede’s masculinity-femininity dimension? A. Reliance on group decisions versus reliance on individual decisions. B. Everyone should have equal rights versus the ones in control should be entitled to privilege. C. Willingness to take risks versus concern with security in life. D. Assertiveness and material concerns versus concerns for human relationships and feelings. E. Time is free versus time is money. D GT Fa
211.
Hofstede defined his time orientation dimension of national culture as __________. A. The degree to which a society tolerates risk and situational uncertainties. B. The degree to which a society accepts a hierarchical or unequal distribution of power in organizations. C. The degree to which a society relies on individual accomplishments and self-interests versus the collective accomplishments and interests of the group. D. The degree to which a society emphasizes assertiveness and material concerns versus greater concerns for human relationships and feelings. E. The degree to which a society emphasizes short-term considerations versus greater concern for the future. E GT Fa
212.
Hofstede’s cultural framework helps identify useful managerial implications of cultural differences, including all of the following EXCEPT: A. Workers from high power distance cultures can be expected to respect people in authority. B. In high uncertainty avoidance cultures, employment practices that increase job security are likely to be used. C. In highly individualistic societies, workers are likely to emphasize self-interests over group loyalty. D. In more feminine societies, the workplace displays more rigid gender stereotypes. E. In long-term cultures, business strategies are oriented toward the long term. D GT Ap
188
Schermerhorn & Wright: Management
Understanding Cultural Diversity 213.
Fons Trompenaars’s framework for identifying systematic cultural differences focuses on __________. A. The way relationships are handled among people. B. Attitudes toward time. C. Attitudes toward the environment. D. B and C. E. A, B, and C. E GT Fa
214.
According to Fons Trompenaars, __________ is the degree to which a culture emphasizes rules and consistency in relationships, or accepts flexibility and the bending of rules to fit circumstances. A. Individualism versus collectivism. B. Universalism versus particularism. C. Neutral versus affective. D. Specific versus diffuse. E. Achievement versus prescription. B GT Fa
215.
According to Fons Trompenaars, __________ is the degree to which a culture emphasizes individual freedoms and responsibilities in relationships, or focuses more on group interests and consensus. A. Individualism versus collectivism. B. Universalism versus particularism. C. Neutral versus affective. D. Specific versus diffuse. E. Achievement versus prescription. A GT Fa
216.
According to Fons Trompenaars, __________ is the degree to which a culture emphasizes objectivity and reserved detachment in relationships, or allows for more emotionality and expressed feelings. A. Individualism versus collectivism. B. Universalism versus particularism. C. Neutral versus affective. D. Specific versus diffuse. E. Achievement versus prescription. C GT Fa
217.
According to Fons Trompenaars, __________ is the degree to which a culture emphasizes focused and in-depth relationships, or broader and more superficial ones. A. Individualism versus collectivism. B. Universalism versus particularism. C. Neutral versus affective. D. Specific versus diffuse. E. Achievement versus prescription. D GT Fa
Chapter 5: Global Dimensions of Management
189
218.
According to Fons Trompenaars, __________ is the degree to which a culture emphasizes an earned or performance-based status in relationships, or awards status based on social standing and nonperformance factors. A. Individualism versus collectivism. B. Universalism versus particularism. C. Neutral versus affective. D. Specific versus diffuse. E. Achievement versus prescription. E GT Fa
219.
The __________ of time refers to a culture that views time as a continuous and passing series of events that are recycled. A. Time conscience view. B. Sequential view. C. Synchronic view. D. Polychronic view. E. Appreciation for time view. B GT Fa
220.
The __________ of time refers to a culture that views time as linear with sense of urgency in moving from present to future. A. Sequential view. B. Time conscience view. C. Synchronic view. D. Polychronic view. E. Analytical view of time. C GT Fa
221.
Fons Trompenaars recognizes that cultures vary in their approach to the environment. In a(n) __________ culture, people tend to view themselves as separate from nature. A. Outer-directed. B. Self-directed. C. Inner-directed. D. Self-motivating. E. Distrusting. C GT FA
222.
Fons Trompenaars’ cultural framework suggests that in a(n) __________ culture, people tend to view themselves as part of nature. A. Inner-directed. B. Naturalist. C. Environmentally friendly. D. Outer-directed. E. Humanist. D GT Fa
190
Schermerhorn & Wright: Management
MANAGEMENT ACROSS CULTURES (STUDY QUESTION 5) 223.
__________ is the study of how management practices systematically differ among countries and/or cultures. A. International management. B. Comparative management. C. International business. D. Theory Z. E. Political-risk analysis. B KT Fa
224.
The global manager is a person who is __________. A. Comfortable with cultural diversity. B. Quick to find opportunities in unfamiliar settings. C. Able to utilize economic, social, technological, and other forces for the benefit of the organization. D. All of the above. E. None of the above. D GT Fa
Planning and Controlling 225.
Which one of the following statements accurately describe planning and controlling of global operations? A. Increasingly, technology facilitates the planning and controlling of global operations through vastly improved communications systems. B. Businesses with investments in foreign countries must remain cautious about the risk of doing business across political and economic borders. C. Political risk analysis is used to forecast the probability that events — like social instabilities due to ethnic differences, armed conflicts, and new laws and economic policies –– will threaten the security of a foreign investment. D. A and B. E. A, B, and C. E GT Fa
226.
__________ refers to potential loss due to fluctuating exchange rates. A. Political risk. B. Currency risk. C. Business risk. D. Social risk. E. Economic risk. B KT Fa
Chapter 5: Global Dimensions of Management
191
227.
__________ is the potential loss of one’s investment in or managerial control of a foreign asset due to changes in the host country’s political environment. A. Economic instability. B. Corporate malfeasance. C. Political instability. D. Political risk. E. Sociocultural risk. D KT Fa
228.
Forecasting the probability of disruptive events that may threaten the security of a foreign investment is referred to as __________ analysis. A. Political-risk. B. Security. C. Economic-security. D. Investment-risk. E. Foreign-instability. A KT Fa
Organizing and Leading 229.
The __________ is an organizing option that arranges production and sales functions into separate geographical units. A. Multinational flexible structure. B. Global area structure. C. Global product structure. D. Global centralized structure. E. Multinational decentralized structure. B GT Fa
230.
The International Consumer Products Company manufactures and sells a variety of household cleaning supplies, personal care products, and food products in Europe, North America, and South America. Their production and distribution operations are organized into divisions corresponding to each of these world regions. International Consumer Products Company is using a(n) __________. A. Multinational flexible structure. B. Global area structure. C. Global product structure. D. Global centralized structure. E. Multinational decentralized structure. B GT Ap
231.
The __________ is an organizing option that gives worldwide responsibilities to product group managers, who are assisted by area specialists on the corporate staff. A. Multinational flexible structure. B. Global area structure. C. Global product structure. D. Global centralized structure. E. Multinational decentralized structure. C GT Fa
192
Schermerhorn & Wright: Management
232.
TransGlobal Corporation manufactures computers, steel, and a variety of soft drinks for the worldwide market. Each product line is managed by a separate staff that is assigned total corporate and worldwide responsibility for manufacturing that product. TransGlobal also utilizes a number of geographic area specialists who help coordinate product manufacturing in a given area. TransGlobal is utilizing a __________. A. Multinational flexible structure. B. Global area structure. C. Global product structure. D. Global centralized structure. E. Multinational decentralized structure. C GT Ap
233.
Employees who live and work in foreign countries on short-term or long-term assignments are known as __________. A. Host nation employees. B. Foreign correspondents. C. Expatriates. D. Nationalized employees. E. Cultural adaptives. C KT Fa
234.
Several personal attributes are considered important for the success of employees who accept overseas assignments. Which of the following is NOT one of these important personal attributes? A. A high degree of self-awareness and cultural sensitivity. B. A real desire to live and work abroad. C. Family flexibility and support. D. Technical competence in one’s job E. Exceptional capability with information technology. E GT Fa
Are Management Theories Universal? 235.
One of the concerns of multinational corporations is whether North American management practices and theories are appropriate for use in foreign countries. Hofstede’s research in this area indicates that American theories __________. A. Are universally applicable since they are good theories. B. Are only valid within the North America. C. Work best within North American-based multinational corporations. D. Are still ethnocentric. E. Work best within English-speaking countries. D GT Fa
Chapter 5: Global Dimensions of Management
193
236.
Which of the following statements accurately describes Hofstede’s assessment of the universality of management theories? A. North American motivation theories are highly applicable in collectivist cultures. B. Participative concepts of leadership are more transferable to cultures with high power distance scores. C. North American and Western European management theories are free of ethnocentrism. D. All of the above. E. None of the above. E GT Ap
237.
The text discusses characteristics of the Japanese approach to management. Which of the following is NOT one of these characteristics? A. Japanese workers intend to work for an organization their entire career. B. Japanese managers experience gradual career advancement. C. Japanese firms utilize practices that reflect their cultural traditions such as long-term orientation, collectivism, and high power distance. D. Japanese management practice emphasizes job enrichment and focuses on restructuring individual jobs to suit individual needs. E. Japanese managers utilize collective decision making. D GT Fa
Global Organizational Learning 238.
Companies that believe in __________ realize that businesses around the world have much to share with and learn from on another. A. Transnational knowledge positioning. B. Global organizational learning. C. Expatriate knowledge sharing. D. International trade. E. Cross-cultural management of intellectual property. B GT Ap
239.
In international businesses with __________, managers tend to believe that the best managerial approaches are always found at home. A. Concentric attitudes. B. Monocentric attitudes C. Ethnocentric attitudes. D. Polycentric attitudes. E. Geocentric attitudes. C KT Fa
240.
In international businesses with __________, managers respect the knowledge and practices of locals and allow them to largely run the operation in their countries. A. Concentric attitudes. B. Monocentric attitudes C. Ethnocentric attitudes. D. Polycentric attitudes. E. Geocentric attitudes. D KT Fa
194
Schermerhorn & Wright: Management
241.
In international businesses with __________, managers genuinely value talent and best practices from all over the globe. A. Concentric attitudes. B. Monocentric attitudes C. Ethnocentric attitudes. D. Polycentric attitudes. E. Geocentric attitudes. E KT Fa
242.
To promote global organizational learning, organizations and their members should __________. A. Share with and learn from one another, particularly from excellent companies, both at home and abroad. B. Appreciate the constraints and opportunities of different national cultures and environments. C. Be alert, open, inquiring, and cautious regarding the potential merits of management practices found in other countries and how they are affected by cultural variables. D. All of the above. E. None of the above. D GT Ap
Essay Questions 243.
Identify and describe the key competitive arenas in the 21st century global economy. Suggested Answer: The key competitive arenas in the 21st century global economy are: the European Union, the Americas, Asia and the Pacific Rim, and Africa. The European Union (EU) is a group of European countries that agreed to support mutual economic growth by removing barriers that previously limited cross-border trade and business development. Members of the EU are linked through favourable trade and customs laws to facilitate the free flow of workers, goods and services, and investments across national boundaries. In the Americas, the North American Free Trade Agreement (NAFTA) largely frees the flow of goods and services, workers, and investments among Canada, Mexico, and the United States. The possibility of a Free Trade of the Americas Agreement (FTAA) would create a free-trade zone from Alaska to Chile. Asia and the Pacific Rim is a “megamarket” and a superpower in the global economy, and it has considerable growth potential. This region represents a major market for goods and services, is a source of low-cost labour, and has a growing availability of skilled knowledge workers. While parts of Africa suffer from some of the lowest rates of economic growth in the world, poverty, and the devastation of the AIDS epidemic, other parts of Africa offer considerable opportunity for international business and have solid economic prospects. A recent Harvard study concluded that Africa’s contextual problems are manageable, and as a consequence foreign investment in Africa should not be unduly jeopardized.
244.
Briefly describe the different forms of international business that an organization can pursue.
Chapter 5: Global Dimensions of Management
195
Suggested Answer: An international business conducts for-profit transactions of goods and/or services across national boundaries. These transactions can be conducted through the following forms: • • • • • • •
245.
Global sourcing involves purchasing materials, manufacturing components, or business services from around the world. Exporting involves selling locally-made products in foreign markets. Importing involves buying foreign-made products and selling them in domestic markets. A licensing agreement occurs when a foreign firm pays a fee for the right to make or sell another company’s products in a specified region. Franchising is a form of licensing in which the foreign firm buys the rights to use another firm’s name and operating methods in its home country. Joint ventures are co-ownership arrangements that pool resources, share risks, and share control of business operations. A foreign subsidiary is a local operation completely owned and controlled by a foreign firm.
Describe the key dimensions of Geert Hofstede’s framework for comparing national cultures. What are the implications of these cultural dimensions for international business? Suggested Answer: Geert Hofstede identified five keys dimensions by which national cultures can be compared. These cultural dimensions are: • • • • •
Power distance –– the degree to which a society accepts or rejects the unequal distribution of power among people in organizations and the institutions of society. Uncertainty avoidance –– the degree to which a society is uncomfortable with risk, change, and situational uncertainty, versus having tolerance for them. Individualism-collectivism –– the degree to which a society emphasizes individual accomplishments and self-interests, versus the collective accomplishments and interests of groups. Masculinity-femininity ⎯ the degree to which a society values assertiveness and material success, versus feelings and concern for relationships. Time orientation ⎯ the degree to which a society emphasizes short-term considerations versus greater concern for the future.
People who grow up in and live in a particular culture are influenced by that culture’s orientation toward each of these dimensions. Different behaviour will result from different orientations toward these cultural dimensions.
246.
Explain the fundamental nature of the Trompenaars’s cultural framework for international business. Suggested Answer: Fons Trompenaars has identified systematic differences across cultures in the ways relationships are handled among people, in attitudes toward time, and in attitudes toward the environment. Relationships with people differ on the following dimensions
196
Schermerhorn & Wright: Management
• • • • •
Universalism versus particularism –– the degree to which a culture emphasizes rules and consistency in relationships, or accepts flexibility and the bending of rules to fit circumstances. Individualism versus collectivism –– the degree to which a culture emphasizes individual freedoms and responsibilities in relationships, or focuses more on group interests and consensus. Neutral versus affective –– the degree to which a culture emphasizes objectivity and reserved detachment in relationships, or allows more emotionality and expressed feelings. Specific versus diffuse –– the degree to which a culture emphasizes focused and in-depth relationships, or displays broader and more superficial ones. Achievement versus prescription –– the degree to which a culture emphasizes an earned or performance-based status in relationships, or status based on social standing and nonperformance factors.
Cultural attitudes toward time reflect two alternative views, as do attitudes toward the environment. The sequential view of time occurs in cultures that consider time to be a continuous and passing series of events; whereas the synchronic view occurs in cultures that view time as linear, with an interrelated past, present, and future. With respect to attitudes toward the environment, people in inner-directed cultures tend to view themselves as quite separate from nature, and the environment is viewed as something to be controlled or used for personal advantage. People in outer-directed cultures tend to view themselves as part of nature, and hence try to blend with or go along with the environment, rather than trying to control it.
247.
Are management theories universal? Suggested Answer: Geert Hofstede argues that management theories do not apply universally across nations and cultures; he worries that many theories are ethnocentric and fail to take into account cultural differences. For instance, America’s emphasis on participation in leadership reflects the culture’s moderate stance on power distance; other countries with higher scores (e.g., France) are less participative. Hofstede also argues that U.S.-based motivation theories are value laden, with an emphasis on individual performance. He argues that this is consistent with the individualism found in Anglo-American countries. However, where values are more collectivistic, the theories may be less appropriate. The focus on individual job enrichment in the United States as opposed to the focus on groups of workers as in Europe is also consistent with individualistic versus collectivistic differences. Similarly, while some Japanese practices can be applied successfully abroad, others have met with difficulties. Specific Japanese practices that vary with respect to degree of transferability include: lifetime employment, job rotation and broad career experience, information sharing, group decisions, and quality emphasis. It is important to identify both the potential merits of management practices found in other countries and the ways in which cultural variables may affect their success or failure when applied elsewhere.
Chapter 6:
ENTREPRENEURSHIP AND SMALL BUSINESS True/False Questions CHAPTER INTRODUCTION 1.
Entrepreneurs start their own businesses, often in order to be their own boss or to make a special contribution to society. T GT Ap
THE NATURE OF ENTREPRENEURSHIP (STUDY QUESTION 1) 2.
Success in highly competitive business environments depends on access to wealthy investors and establishing a corporate form of ownership to minimize risk. F GT Fa
3.
Entrepreneurship describes strategic thinking and risk-taking behaviour that results in the creation of new opportunities for individuals and/or organizations. T KT Fa
4.
H. Wayne Huizenga believes that “An important part of being an entrepreneur is a gut instinct that allows you to believe in your heart that something will work even though everyone else says it will not.” T GT Ap
Who Are the Entrepreneurs? 5.
An entrepreneur is a risk-taking individual who takes action to pursue opportunities and situations others fail to recognize, or even view as problems or threats. T KT Fa
6.
Frank Stronach of Magna International Inc., holds to his vision of Fair Enterprise, which ensures the rights of employees, management, and investors to share in the profits they all help to produce. T GT Ap
197
198
Schermerhorn & Wright: Management Fundamentals
7.
The entrepreneur, Richard Branson, founder of Waste Management, Inc., Auto Nation, Inc., the Miami Dolphins football team, and Blockbuster Video, entrepreneurial perspective can be expressed as: “Success depends on seizing the moment and sometimes creating your own opportunity.” F GT Ap
8.
Heather Reisman, has had a varied career in Canadian companies, She co-founded Paradigm Consulting, was president of the Cott Corporation, and launched Indigo Books and Music. T GT Ap
9.
Frank Sobey, founder of Virgin Airlines, Virgin Records, and Virgin Cola, explains her wide – ranging business interests as follows: “I love to learn things that I know little about.” F GT Ap
10.
Teresa Casciola, the CEO of Lakeport Brewing Company , saved the company by launching a country-wide advertising campaign and merging with Molson Breweries. F GT Ap
Characteristics of Entrepreneurs 11.
Entrepreneurs include people who buy a local franchise outlet, open a small retail shop, or go into a self-employed service business. T GT Fa
12.
Founders of new business enterprises that achieve large-scale success or people who assume responsibility for introducing a new product or a change in operations in an existing organization are not entrepreneurs. F GT Fa
13.
The general profile of an entrepreneur is an individual who is very self-confident, determined, resilient, adaptable, and driven by excellence. T GT Fa
14.
Entrepreneurs typically have an internal locus of control, a high energy level, a high need for achievement, a high tolerance for ambiguity, self-confidence, an action orientation, the desire for independence, and a high degree of flexibility. T GT Fa
15.
Entrepreneurs typically come from families with strong corporate career backgrounds and seek independence from the corporate bureaucracies that dominated their parents. F GT Fa
16.
Entrepreneurs tend to have prior career or personal experience in the business area or industry in which they develop an entrepreneurial venture. T GT Fa
17.
Entrepreneurs have strong interests in creative production and high interest in enterprise control T GT Fa
Chapter 6: Entrepreneurship and Small Business
199
Diversity and Entrepreneurship 18.
Women start new businesses because they are motivated by an entrepreneurial idea, realize that they could do for themselves what they were already doing for other employers, or are experiencing glass ceiling issues with their employer. T GT Fa
19.
Women of color seek entrepreneurial opportunities as a result of not being recognized or valued by their prior employers, not being taken seriously by their prior employers, and seeing others promoted ahead of them. T GT Fa
20.
Minority-owned businesses are one of the slowest growing sectors of the Canadian economy. F GT Fa
21.
The following phrases ⎯ entrepreneurs are born, not made; entrepreneurs are gamblers; and entrepreneurs are young ⎯ capture three fundamental truths about entrepreneurs. F MN Fa
22.
Entrepreneurs are risk takers, but the risks are informed and calculated. T MN Fa
23.
Just having money is no guarantee of success; many entrepreneurs start with very little money. T MN Fa
ENTREPRENEURSHIP AND SMALL BUSINESS (STUDY QUESTION 2) 24.
A small business has fewer than 100 employees, is independently owned and operated, and does not dominate its industry. T KT Fa
25.
Approximately one-quarter of Canadian businesses are classified as small. F GT Fa
26.
Wanting to be their own bosses and controlling their future or seeking to fulfill a dream are important reasons that people pursue entrepreneurship and launch their own businesses. T GT Fa
27.
The most common ways for an entrepreneur to become involved in a small business include starting one, buying an existing one, or buying and running a franchise. T GT Fa
28.
A franchise is where a business owner sells to another person the right to operate the same business in another location, under the original owner’s business name and guidance. T KT Fa
Entrepreneurship and the Internet 29.
The Internet has created numerous entrepreneurial possibilities, including on-line buying and selling and the more formal pursuit of “dot-com” businesses. T GT Fa
200
Schermerhorn & Wright: Management Fundamentals
30.
B2B involves specialized business-to-business Web sites that link buyers and sellers. T GT Fa
31.
Internet entrepreneurial opportunities are limited only by one’s creativity. T GT Fa
International Business Entrepreneurship 32.
Expanded markets, additional financing, access to quality and possibly lower cost resources, and locations for low-cost manufacturing or outsourcing are key strategic opportunities for small businesses in the international arena. T GT Fa
33.
As the economies of the world’s countries improve and the overall standard of living rises, greater international business opportunities for exporting and importing exist. T GT Fa
34.
To move any business toward international opportunities, investments must be made in travel, communication, building relationships, and gaining expertise. T GT Fa
35.
The Thomas Register of American Companies and the SBA’s Trade Net Export Advisor, among others, provide support for the development of international small business ventures. T GT Fa
Family Businesses 36.
A type of business that is owned and financially controlled by family members is known as a family business. T KT Fa
37.
Family businesses represent only a small percentage of the businesses operating worldwide. F GT Fa
38.
Everyone working together, sharing values and a common goal, and knowing that what they do benefits the family define the ideal situation in a family business. T GT Ap
39.
While family businesses must solve the same problems of other small or large businesses, they also must address a set of unique problems. T GT Ap
40.
The family business feud occurs when members of the controlling family get into disagreements about work responsibilities or finances but not business strategy or operating approaches. F GT Fa
41.
A significant problem that faces family business is the succession problem, which is the transfer of leadership from one generation to the next. T KT Fa
Chapter 6: Entrepreneurship and Small Business
201
42.
The vast majority of family business with succession plans will survive well beyond the second generation. F GT Ap
43.
About 70 percent of family firms survive to the second generation, about 45 percent of them survive to the third generation, and about 25 percent of them are expected to survive beyond the third generation. F GT Fa
44.
A succession plan is a formal statement that describes how leadership transition and related matters will be handled when the time for changeover arrives. T KT Fa
45.
A succession plan must include legal aspects of any ownership transfer but need not address procedures for choosing or designating the firm’s new leadership or any financial and estate plans relating to the transfer. F GT Fa
46.
In succession planning, family businesses should set up the succession plan well in advance of the need to use it; and then share it with all affected persons, making sure they understand it. T GT Ap
47.
In succession planning, family businesses should identify the leadership successor well ahead of time and prepare the leadership successor through training and experience to assume the new role when needed. T GT Ap
Why Small Businesses Fail 48.
Statistics on small business failure rates indicate that a high proportion of new businesses fail in their first five years of operation. T GT Fa
49.
Lack of experience, lack of expertise, lack of strategy and strategic leadership, poor financial control, growing too fast, lack of commitment, and ethical failure are important reasons for new business failures. T GT Fa
50.
Not having sufficient know-how to run a business in the chosen market or area is a reason for the high failure rate of new businesses. T GT Fa
51.
Having expertise in the essentials of business operations, including finance, purchasing, selling and production is a reason for the high failure rate of new businesses. F GT Fa
52.
Taking the time to craft a vision and mission, and to formulate, revise, and properly implement strategy are reasons for the high failure rate of new businesses F GT Fa
202
Schermerhorn & Wright: Management Fundamentals
53.
Not keeping track of the numbers and failure to control business finances has little to do with business success or failure. F GT Fa
54.
Not taking the time to consolidate a position, fine-tune the organization, or systematically meet the challenges of growth is a reason for the high failure rate of new businesses. T GT Fa
55.
Not devoting enough time to the requirements of running a competitive business is a reason for the high failure rate of new businesses. T GT Fa
56.
Falling prey to the temptations of fraud, deception, and embezzlement is a reason for the success of new businesses. F GT Fa
NEW VENTURE CREATION (STUDY QUESTION 3) 57.
In creating a new venture, the entrepreneur should have good ideas and the courage to give them a chance. T GT Fa
58.
The entrepreneur’s ability to identify a market niche that is being missed by other established firms or to identify a new market that has not yet been discovered by existing firms are important avenues of new venture creation. T GT Fa
59.
A first-mover advantage occurs by exploiting a niche or entering a market before competitors. T KT Fa
60.
A first-mover advantage comes from being first within the industry to outsource non-core business activities or to embrace social responsibility. F KT Fa
61.
To stay customer focused, a new venture should effectively address questions such as: Who is your customer? How will you price your product or service for the customer? How much does it cost to attract a customer? How much does it cost to support and retain a customer? T MN Fa
Life Cycles of Entrepreneurial Firms 62.
In the birth stage of the life cycle of entrepreneurial firms, the entrepreneur struggles to get the new venture established and to survive long enough to test the viability of the underlying business model in the marketplace. T GT Fa
63.
Activities that focus on establishing the business, getting customers, and finding financing occur in the breakthrough stage of the life cycle of entrepreneurial firms. F GT Fa
Chapter 6: Entrepreneurship and Small Business
64.
At the birth stage of the life cycle of entrepreneurial firms, the management challenge is one of fighting for existence and survival. T
65.
203
GT
Fa
At the breakthrough stage of the life cycle of entrepreneurial firms, the business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly. T GT Fa
66.
Activities that focus on working on finances, becoming profitable, and growing occur in the birth stage of the life cycle of entrepreneurial firms. F 157 GT Fa
67.
At the breakthrough stage of the life cycle of entrepreneurial firms, the management challenge is one of investing wisely and staying flexible. F GT Fa
68.
In the maturity stage of the life cycle of entrepreneurial firms, the entrepreneur experiences the advantages of market success and financial stability, while also facing continuing challenges of meeting the needs for professional management skills. T GT Fa
69.
Activities that focus on refining the strategy, continuing growth, and managing for success occur in the growth stage of the life cycle of entrepreneurial firms. F GT Fa
70.
At the maturity stage of the life cycle of entrepreneurial firms, the management challenge is one of coping with growth and takeoff. F GT Fa
71.
The life cycle of entrepreneurial firms poses different management challenges at each stage and requires different management competencies at each stage. T GT Fa
Writing the Business Plan 72.
A business plan describes the direction for a new business and the financing needed to operate it. T KT Fa
73.
A business plan should include an executive summary, industry analysis, company description, products and services description, market description, marketing strategy, operations description, staffing description, financial projection, capital needs, and milestones. T MN Fa
Choosing the Form of Ownership 74.
One of the important decisions in starting a new business venture is choosing the legal form of ownership. T GT Fa
75.
A sole proprietorship is an individual or married couple pursuing business for a profit. T KT Fa
204
Schermerhorn & Wright: Management Fundamentals
76.
A partnership is formed when two or more people agree to contribute resources to start and operate a business together. T KT Fa
77.
A general partnership consists of business partners who agree on the contribution of resources and skills to the new venture, and on the sharing of profits, losses, and management responsibilities. T GT Fa
78.
A limited partnership limits the liability of one partner for the negligence of another partner. A limited liability partnership consists of a general partner and one or more other partners who do not participate in day-to-day business management. F GT Fa
79.
A corporation is a legal entity that exists separate from its owners, protects the owners from personal liability, and gives the firm a life of its own beyond that of its owners. T KT Fa
80.
A limited liability corporation is a hybrid business form combining advantages of the sole proprietorship, partnership, and corporation. T KT Fa
81.
For tax purposes, the limited liability corporation functions like a corporation, protecting the owners assets against claims made against the company. F GT Ap
82.
For liability purposes, the limited liability corporation functions as a partnership in the case of multiple owners and as a sole proprietorship in the case of a single owner. F GT Ap
Financing the New Venture 83.
Debt financing involves borrowing money from another person, a bank, or a financial institution and repaying it over time with interest. T KT Fa
84.
Equity financing involve exchanging ownership shares in the business in return for outside investment monies. T KT Fa
85.
Debt financing involves exchanging ownership shares for outside investment monies, whereas equity financing involves borrowing money to be repaid over time with interest. F KT Fa
86.
Equity financing is usually obtained from venture capitalists, which are companies that pool capital and make investments in new ventures in return for an equity stake in the business. T KT Fa
87.
Venture capitalists tend to focus on relatively large investments and they usually take a management role in order to grow the business and add value as soon as possible. T KT Fa
Chapter 6: Entrepreneurship and Small Business
205
88.
Sometimes an entrepreneurial venture becomes a candidate for an initial public offering in which shares of stock in the business are sold to the public and begin trading on a major stock exchange. T KT Fa
89.
A successful IPO enhances the value of the original investments of the venture capitalist and the entrepreneur. T GT Fa
90.
An angel investor is a wealthy individual who is willing to make an investment in return for equity in a new venture. T KT Fa
91.
The presence of angel investors are common and helpful in the very early startup stage of an entrepreneurial venture, and as a result cause venture capitalists to have little interest in investing in the entrepreneurial venture. F GT Fa
ENTREPRENEURSHIP AND BUSINESS DEVELOPMENT (STUDY QUESTION 4) Entrepreneurship and Large Enterprises 92.
Even as large enterprises operate more and more flexibly, they still depend on entrepreneurship within the system to drive innovation and development for sustained competitive advantage. T GT Fa
93.
Intrapreneurship describes the entrepreneurial behaviour displayed people or subunits operating within large organizations. T KT Fa
94.
Through the efforts of intrapreneurs, large organizations are able to turn new ideas into profitable new products, services, and business ventures. T GT Fa
95.
To realize the benefits of intrapreneurship, managers of large organizations often find that success depends on the ability of large organizations to act like their competitors and vertically integrate their operations. F GT Fa
96.
Skunkworks are special facilities that offer space, a variety of shared administrative services, and management advice to help small businesses get started. F KT Fa
97.
A skunkworks is an organizational subunit that is in charge of disciplinary and training programs for poor performing employees. F KT Ap
206
Schermerhorn & Wright: Management Fundamentals
Business Incubation 98.
One of the advantages of venture capitalism is that it takes place in a larger organization that can be supportive in terms of resources and other forms of startup support. F GT Fa
99.
A business incubator can help support entrepreneurial motivation without the discouragement of startup requirements. T GT Fa
100.
Business incubators are small organizational subunits where teams are allowed to work together in a unique setting that is highly creative and free of the operating restrictions of the larger parent organization. F KT Fa
101.
Business incubators helping to build successful new businesses that create jobs and improve economic development. T GT Fa
Small Business Development Centers 102.
The United States Small Business Administration works with state and local agencies to support a network of over 1000 Small Business Development Centers nationwide. T GT Fa
103.
Small Business Development Centers offer guidance and support to small business owners in how to set up and run a business operation. T GT Fa
104.
Small Business Development Centers are frequently affiliated with the strategic planning departments of large organizations. F GT Fa
105.
Small Business Development Centers that are associated with colleges and universities offer opportunities for students to learn about the nature of small business and entrepreneurship. T GT Fa
Multiple Choice Questions CHAPTER INTRODUCTION 106.
Which of the following statements provides an accurate description of an entrepreneur? A. An entrepreneur starts his or her own business. B. An entrepreneur is his or her own boss. C. An entrepreneur can make his or her own special contribution to society. D. A and B. E. A, B, and C. E GT Ap
Chapter 6: Entrepreneurship and Small Business
207
THE NATURE OF ENTREPRENEURSHIP (STUDY QUESTION 1) 107.
Success in highly competitive business environments depends on __________. A. Entrepreneurship. B. Venture capitalists. C. Access to wealthy investors. D. Establishing a corporate form of ownership. E. Minimizing risk. A GT Fa
108.
__________ describes strategic thinking and risk-taking behaviour that results in the creation of new opportunities for individuals and/or organizations. A. Strategic planning. B. Angel investing. C. Entrepreneurship. D. Management development. E. Organizational development. C KT Fa
109.
H. Wayne Huizenga believes that “An important part of __________ is a gut instinct that allows you to believe in your heart that something will work even though everyone else says it will not.” A. Being an entrepreneur. B. Visioning. C. Business venturing. D. Strategic management. E. Small business success. A GT Ap
Who Are the Entrepreneurs? 110.
__________ is a risk-taking individual who takes action to pursue opportunities and situations others fail to recognize, or even view as problems or threats. A. A daredevil. B. An opportunist. C. An intrapreneur. D. An entrepreneur. E. A managerial activist. D KT Fa
111.
An entrepreneur is an individual who __________. A. Takes risks. B. Takes action to pursue opportunities and situations others may fail to recognize as such. C. Takes action to pursue opportunities and situations others may view as problems or threats. D. Both B and C. E. A, B, and C. E KT Fa
208
Schermerhorn & Wright: Management Fundamentals
112.
The entrepreneur, Frank Stronach, founded which business(es)? A. Magna International Inc. B. Virgin Airlines, Virgin Records, and Virgin Cola. C. Black Enterprise magazine. D. Waste Management, Inc., Auto Nation, Inc., the Miami Dolphins football team, and Blockbuster Video. E. The Body Shop PLC. A GT Ap
113.
Which of the following succinctly captures the entrepreneurial viewpoint of Frank Stronach? A. Fair Enterprise ensures the rights of employees, management, and investors to share in the profits they all help produce. B. I love to learn things that I know little about. C. I feel that a large part of my role as publisher of Black Enterprise is to be a catalyst for black economic development in this country. D. Success depends on seizing the moment and sometimes creating your own opportunity. E. If you think you’re too small to have an impact, try going to bed with a mosquito. A GT Ap
114.
The entrepreneur, Richard Branson, founded which business(es)? A. Mary Kay Cosmetics. B. Virgin Airlines, Virgin Records, and Virgin Cola. C. Black Enterprise magazine. D. Waste Management, Inc., Auto Nation, Inc., the Miami Dolphins football team, and Blockbuster Video. E. The Body Shop PLC. B GT Ap
115.
Which of the following quotes succinctly captures the entrepreneurial perspective of Richard Branson? A. The goal from the beginning has been “to help women everywhere reach their full potential.” B. “I love to learn things that I know little about.” C. “I feel that a large part of my role as publisher of Black Enterprise is to be a catalyst for black economic development in this country.” D. “Success depends on seizing the moment and sometimes creating your own opportunity.” E. “If you think you’re too small to have an impact, try going to bed with a mosquito.” B GT Ap
116.
The entrepreneur, Heather Reisman, founded which business(es)? A. Mary Kay Cosmetics. B. Virgin Airlines, Virgin Records, and Virgin Cola. C. Indigo Books & Music Inc.. D. Waste Management, Inc., Auto Nation, Inc., the Miami Dolphins football team, and Blockbuster Video. E. The Body Shop PLC. C GT Ap
Chapter 6: Entrepreneurship and Small Business
209
117.
Which of the following succinctly captures the entrepreneurial viewpoint of Heather Reisman? A. The goal from the beginning has been “to help women everywhere reach their full potential. B. I love to learn things that I know little about. C. Using a strong growth and change strategy she developed the largest book seller in Canada.\ D. Success depends on seizing the moment and sometimes creating your own opportunity.” E. “If you think you’re too small to have an impact, try going to bed with a mosquito.” C GT Ap
118.
The entrepreneur, Frank Sobey, founded which business(es)? A. Mary Kay Cosmetics. B. Virgin Airlines, Virgin Records, and Virgin Cola. C. Black Enterprise magazine. D. Sobeys’ Lawton E. The Body Shop PLC. D GT Ap
119.
Which of the following succinctly captures the entrepreneurial perspective of Frank Sobey? A. The goal from the beginning has been “to help women everywhere reach their full potential.” B. I love to learn things that I know little about. C. Success depends on seizing the moment and sometimes creating your own opportunity. D. Grow your business one customer at a time. E. “If you think you’re too small to have an impact, try going to bed with a mosquito.” D GT Ap
120.
The entrepreneur, Teresa Cascioli, founded which business(es)? A. Magna International Inc. B. Virgin Airlines, Virgin Records, and Virgin Cola. C. Indigo Books & Music Inc.. D. Waste Management, Inc., Auto Nation, Inc., the Miami Dolphins football team, and Blockbuster Video. E. Lakeport Brewing Limited Partnership. E GT Ap
121.
Which of the following succinctly captures the entrepreneurial philosophy Tereas Cascioli? A. The goal from the beginning has been “to help women everywhere reach their full potential.” B. I love to learn things that I know little about. C. Success depends on seizing the moment and sometimes creating your own opportunity. D. Grow your business one customer at a time. E. Took over a brewery under bankruptcy protection and made it profitable through cutting prices and expanding market share through innovative ideas. E GT Ap
210 122.
Schermerhorn & Wright: Management Fundamentals The entrepreneur, Ron Joyce, founded which business(es)? A. Magna International Inc.. B. Virgin Airlines, Virgin Records, and Virgin Cola. C. Sobey’s. D. Tim Hortons. E. The Body Shop PLC. D GT Ap
Characteristics of Entrepreneurs 123.
Entrepreneurs include __________. A. Founders of new business enterprises that achieve large-scale success. B. People who buy a local franchise outlet, open a small retail shop, or go into a self-employed service business. C. People who assume responsibility for introducing a new product or a change in operations in an existing organization. D. All of the above. E. Only A and B above. D GT Fa
124.
The characteristics that are typically associated with entrepreneurs include all of the following EXCEPT: A. Internal locus of control. B. High need for achievement. C. Intolerance for ambiguity. D. Action orientation. E. Self-confidence. C GT Fa
125.
Which one of the following statements does NOT accurately describe entrepreneurs? A. Entrepreneurs believe that they control their own destiny; they are self-directing and like autonomy. B. Entrepreneurs are persistent, hard working, and willing to exert extraordinary efforts to succeed. C. Entrepreneurs are motivated to act collectively to accomplish challenging goals. D. Entrepreneurs are risk takers; they tolerate situations with high degrees of uncertainty. E. Entrepreneurs feel competent, believe in themselves, and are willing to make decisions. C GT Fa
126.
Entrepreneurs share all of the following characteristics EXCEPT: A. Entrepreneurs believe that they control their own destiny; they are self-directing and like autonomy. B. Entrepreneurs are risk minimizers since this is the best way to control their own destinies. C. Entrepreneurs are motivated to act individually to accomplish challenging goals; they thrive on performance feedback. D. Entrepreneurs try to act ahead of problems; they want to get things done quickly and do not want to waste valuable time. E. Entrepreneurs want to be independent; they are highly self-reliant and want to be their own boss rather than to work for others. B GT Fa
Chapter 6: Entrepreneurship and Small Business
211
127.
Entrepreneurs tend to have unique backgrounds and experiences. Which of the following is/are included among these distinguishing experiences and backgrounds? A. Entrepreneurs tend to have parents who were entrepreneurs or self-employed. B. Entrepreneurs tend to be raised in families that encourage responsibility, initiative, and independence. C. Most entrepreneurs start their businesses between the ages of 45 and 55. D. A and B. E. A and C. D GT Fa
128.
Entrepreneurs tend to have distinguishable backgrounds and experiences, including all but which one of the following? A. Entrepreneurs typically come from families with strong corporate career backgrounds and seek independence from the corporate bureaucracies that dominated their parents. B. Entrepreneurs seek independence and the sense of mastery that comes with success. C. Entrepreneurs tend to have prior career or personal experience in the business area or industry in which they develop an entrepreneurial venture. D. Entrepreneurs have strong interests in creative production and enterprise control E. Entrepreneurs often try more than one business venture. A GT Fa
Diversity and Entrepreneurship 129.
Women own approximately __________ of all Canadian businesses. A. 10 percent. B. 17 percent. C. 25 percent. D. 33 percent. E. 46 percent. D GT Fa
130.
Reasons for women starting new businesses include all of the following EXCEPT: A. Being motivated by an entrepreneurial idea. B. Having a new idea. C. Realizing that they could do for themselves what they were already doing for other employers. D. Being taken seriously by their prior employer. E. Experiencing glass ceiling issues. D GT Fa
131.
Women of color seek entrepreneurial opportunities as a result of: __________. A. Glass ceiling problems most frequently traced to not being recognized or valued by their prior employers. B. Not being taken seriously by their prior employers. C. Seeing others promoted ahead of them. D. All of the above. E. None of the above. D GT Fa
212
Schermerhorn & Wright: Management Fundamentals
132.
Minority-owned businesses are one of the __________ sectors of the Canadian economy. A. Fastest growing. B. Slowest growing. C. Most profitable. D. Best funded. E. Most technologically advanced. A GT Fa
133.
There are certain myths about entrepreneurs. Which of the following is NOT one of these myths? A. Entrepreneurs are made, not born. B. Entrepreneurs are gamblers. C. Money is the key to entrepreneurial success, D. You have to be young to be an entrepreneur. E. You must have a degree in business to be an entrepreneur. A MN Fa
134.
All of the following statements about entrepreneurs are accurate EXCEPT: A. Talent gained and enhanced by experience is a foundation for entrepreneurial success. B. Entrepreneurs are risk takers, but the risks are informed and calculated. C. Entrepreneurs must have a business degree. D. Just having money is no guarantee of success; many entrepreneurs start with very little money. E. Age alone is not a barrier to entrepreneurship; with age often comes experience, contacts, and other useful resources. C MN Fa
ENTREPRENEURSHIP AND SMALL BUSINESSES (STUDY QUESTION 2) 135.
Which of the following is NOT one of the defining characteristics of small businesses? A. A business with 500 or fewer employees. B. A business with fewer than 100 employees. C. A business that is independently owned. D. A business that is independently operated. E. A business that does not dominate its industry. B KT Fa
136.
Small Canadian businesses employ just over _____________ of the private labour force. A. 30 percent. B. 45 percent. C. 50 percent. D. 75 percent. E. 99 percent. C GT Fa
137.
The reasons that people commonly cite for pursuing entrepreneurship and launching their own businesses include which of the following? A. Wanting be one’s own boss and controlling one’s future. B. Working for a family-owned business. C. Seeking to fulfill a dream. D. A and C. E. A, B, and C. E GT Fa
Chapter 6: Entrepreneurship and Small Business
213
138.
The common ways for an entrepreneur to become involved in a small business include which of the following? A. Start a small business. B. Buy an existing small business. C. Buy and run a franchise. D. Both A and B. E. A, B, and C. E GT Fa
139.
A(n) __________ is where a business owner sells to another person the right to operate the same business in another location, under the original owner’s business name and guidance. A. Franchise. B. Outsourcing alliance. C. Supplier alliance. D. Distribution alliance. E. Professional partnership. A KT Fa
Entrepreneurship and the Internet 140.
Which of the following statements about entrepreneurship and the Internet is/are correct? A. The Internet has created numerous entrepreneurial possibilities, including on-line buying and selling and the more formal pursuit of “dot-com” businesses. B. B2B opportunities represent a growing segment of Internet entrepreneurship. C. Internet entrepreneurial opportunities are limited only by one’s creativity. D. All of the above are true. E. None of the above is true. D GT Fa
141.
A business that provides both an on-line restaurant reservation service and customer profiles of restaurant patrons making on-line reservations is an example of a(n) __________. A. Family business. B. Internet-based entrepreneurial business. C. Invasion of customers’ privacy. D. Business that will fail. E. Minority-owned business. B GT Ap
142.
A business that uses the Web to help 13- to 18-year old children open a bank account, learn about investing, and donate to charity is an example of __________. A. A family-oriented business. B. A business exploiting children. C. An Internet-based entrepreneurial business. D. A business that will never succeed. E. A minority-owned business. C GT Ap
214 143.
Schermerhorn & Wright: Management Fundamentals “B2B” refers to __________. A. A specialized business-to-business trading floor that links buyers and sellers of commodities. B. A specialized business-to-business stock exchange that links entrepreneurs and angel investors. C. A specialized business-to-business Web site that links buyers and sellers. D. A specialized business-to-business Web site that links entrepreneurs and venture capitalists. E. A specialized business-to-business purchasing cooperative that links suppliers and customers. C GT Fa
International Business Entrepreneurship 144.
The international arena provides strategic opportunities for small businesses. Which one of the following is not one of these strategic opportunities? A. Expanded markets. B. Additional financing. C. Access to quality and possibly lower cost resources D. Access to foreign government influence. E. Locations for low-cost manufacturing or outsourcing. D GT Fa
145.
The development and growth of small businesses opportunities in exporting and importing is encouraged by ___________. A. Improvement and growth in national economies throughout the world. B. Increases in the overall standard of living throughout the world. C. Increased consumer demand for goods and services. D. B and C. E. A, B, and C. E GT Fa
146.
To move any business toward international opportunities, investments must be made in all of the following EXCEPT: A. Travel. B. Communication. C. Building factories. D. Building relationships. E. Gaining expertise. C GT Fa
147.
The Ontario Ministry of Economic Development provides support for the development of __________. A. Domestic small business ventures. B. Small to midsize manufacturing and service companies. C. Venture capitalism. D. Angel investing initiatives. E. Global stock markets. B GT Fa
Chapter 6: Entrepreneurship and Small Business
215
Family Businesses 148.
A type of business that is owned and financially controlled by family members is known as a(n) __________. A. General partnership. B. Entrepreneurial hobby. C. Family business. D. Subchapter S corporation. E. Limited partnership. C KT Fa
149.
According to the text, a family business is an ideal situation when everything goes right. Which of the following NOT one of the aspects of everything going right with a family business? A. Everyone working together. B. Everyone sharing values. C. Everyone sharing a common goal. D. Everyone enjoying equal shares in the financial success of the business. E. Everyone knowing that what they do benefits the family. D GT Ap
150.
Which of the following is NOT an accurate statement about the nature of family businesses? A. Family businesses represent the largest percentage of businesses operating worldwide. B. In the United States, family businesses account for 48 percent of new job creation and 35 percent of the nation’s employment. C. When everything works properly, the family firm is almost an ideal situation. D. Family businesses must solve the same problems of other small or large businesses. E. Family businesses must address a set of unique problems. B GT Ap
151.
The family business feud occurs when members of the controlling family get into disagreements about __________. A. Work responsibilities. B. Business strategy. C. Operating approaches. D. Finances. E. All of the above. E GT Fa
152.
The __________ occurs when members of the controlling family of a business get into disagreements about work responsibilities, business strategy, operating approaches, finances, or other matters. A. Corporate conflict. B. Family relationship disaster. C. Family business feud. D. Partnership disagreement. E. Family business disaster. C GT Fa
216
Schermerhorn & Wright: Management Fundamentals
153.
Transferring leadership from one generation to the next in a family business is known as the __________. A. Doctrine of offspring domain. B. Leadership conundrum. C. Succession problem. D. Transfer cost issue. E. Generation gap. C KT Fa
154.
Which of the following descriptions of the succession problem in family businesses is inaccurate? A. The succession problem involves transferring leadership from one generation to the next. B. A key management issue in the succession problem concerns how the assets will be distributed and who will run the business when the current head leaves. C. The succession problem should be addressed ahead of time with a succession plan. D. The vast majority of family business with succession plans will survive well beyond the second generation. E. Since not all family businesses have succession plans, many will not survive beyond the first generation. D GT Ap
155.
Which of the following statements about the survival rates of family businesses is correct? A. About 40 percent of family firms survive to the second generation. B. About 22 percent of family firms survive to the third generation. C. About 18 percent of family firms are expected to survive beyond the third generation. D. All of these statements are correct. E. None of these statements are correct. E GT Fa
156.
A(n) __________ is a formal statement that describes how the leadership transition and related financial matters will be handled when the time for changeover arrives. A. Succession plan. B. Transition map. C. Leadership transformation plan. D. Organization change map. E. Continuing operations plan. A KT Fa
157.
A succession plan should include __________. A. Procedures for choosing or designating the firm’s new leadership. B. Legal aspects of any ownership transfer. C. Any financial and estate plans relating to the transfer. D. All of the above. E. None of the above. D GT Fa
Chapter 6: Entrepreneurship and Small Business 158.
217
In succession planning, family businesses should do all of the following EXCEPT: A. Set up the succession plan well in advance of the need to use it. B. Use entrepreneurial consultants in establishing the succession plan. C. Share the succession plan with all who are affected by it and make sure that they understand it. D. Identify the leadership successor well ahead of time. E. Prepare the leadership successor through training and experience to assume the new role when needed. B GT Ap
Why Small Businesses Fail 159.
Statistics on small business failure rates indicate that __________ of new businesses fail in their first five years of operation. A. Less than 20 percent. B. 20 to 40 percent. C. About half. D. 60 to 80 percent E. More than 80 percent. D GT Fa
160.
Reasons for new business failure include all of the following EXCEPT: A. Lack of strategy and strategic leadership. B. Lack of marketing control. C. Lack of experience. D. Lack of commitment. E. Lack of expertise. B GT Fa
161.
Which of the following is NOT a reason for the high failure rate of new businesses? A. Poor financial control. B. Growing too fast. C. Lack of experience. D. Poor advertising. E. Ethical failure. D GT Fa
162.
All of the following are reasons for the high failure rate of new businesses EXCEPT: A. Not having sufficient know-how to run a business in the chosen market or area. B. Not having expertise in the essentials of business operations, including finance, purchasing, selling and production. C. Not taking the time to craft a vision and mission, and formulate, revise, and properly implement strategy. D. Not keeping track of the numbers and failure to control business finances. E. Not taking the time to adequately promote the product. E GT Fa
218 163.
Schermerhorn & Wright: Management Fundamentals The high failure rate of new businesses is due to __________. A. Not taking the time to consolidate a position, fine-tune the organization, and systematically meet the challenges of growth. B. Not devoting enough time to the requirements of running a competitive business. C. Falling prey to the temptations of fraud, deception, and embezzlement. D. All of these are reasons for the high failure rate. E. None of the above is a reason for the high failure rate. D GT Fa
NEW VENTURE CREATION (STUDY QUESTION 3) 164.
Important issues in new venture creation include all of the following EXCEPT: A. Does the entrepreneur have good ideas and the courage to give them a chance? B. Is the entrepreneur prepared to meet and master the test of strategy and competitive advantage? C. Can the entrepreneur identify a market niche that is being missed by other established firms? D. Can the entrepreneur identify a new market that has not yet been discovered by existing firms? E. Can the entrepreneur find appropriate safety nets to protect the business from marketplace challenges? E GT Fa
165.
Which of the following are important issues in new venture creation? A. Can the entrepreneur identify a market niche that is being missed by other established firms? B. Can the entrepreneur identify a new market that has not yet been discovered by existing firms? C. Can the entrepreneur generate first-mover advantage by exploiting a niche or entering a market before competitors? D. All of the above. E. None of the above. D GT Fa
166.
A(n) __________ is generated by exploiting a niche or entering a market before competitors. A. First-mover advantage. B. Anticipatory market edge. C. Anticipatory niche advantage. D. Niche competency. E. Niche manipulation. A KT Fa
167.
A first-mover advantage comes from __________. A. Being first to earn a profit. B. Being first to exploit a niche or enter a market. C. Being first to relocate key business operations. D. Being first to outsource non-core business activities. E. Being first within the industry to embrace social responsibility. B KT Fa
Chapter 6: Entrepreneurship and Small Business
219
168.
To stay customer focused, a new venture should effectively address all of the following questions EXCEPT: A. Who is your customer? B. Why is your business strategy compelling in the marketplace? C. How will you price your product or service for the customer? D. How much does it cost to attract a customer? E. How much does it cost to support and retain a customer? B MN Fa
169.
Which of the following questions provide appropriate guidelines for ensuring that new ventures stay customer focused? A. What determines customer choices to buy or not buy this product or service? B. How will you reach key customer market segments? C. How much does it cost to make and deliver your product or service? D. Alternatives A and B specify appropriate guidelines. E. Alternatives A, B, and C specify appropriate guidelines. E MN Fa
Life Cycles of Entrepreneurial Firms 170.
In the __________ stage of the life cycle of entrepreneurial firms, the entrepreneur struggles to get the new venture established and to survive long enough to test the viability of the underlying business model in the marketplace. A. Birth. B. Breakthrough. C. Growth. D. Maturity. E. Decline. A GT Fa
171.
Activities that focus on establishing the business, getting customers, and finding financing occur in the __________ stage of the life cycle of entrepreneurial firms. A. Birth. B. Breakthrough. C. Growth. D. Maturity. E. Decline. A GT Fa
172.
At the __________ stage of the life cycle of entrepreneurial firms, the management challenge is one of fighting for existence and survival. A. Birth. B. Breakthrough. C. Growth. D. Maturity. E. Decline. A GT Fa
220
Schermerhorn & Wright: Management Fundamentals
173.
In the __________ stage of the life cycle of entrepreneurial firms, the business model begins to work, growth is experienced, and the complexity of managing the business operation expands significantly. A. Birth. B. Breakthrough. C. Growth. D. Maturity. E. Decline. B GT Fa
174.
Activities that focus on working on finances, becoming profitable, and growing occur in the __________ stage of the life cycle of entrepreneurial firms. A. Birth. B. Breakthrough. C. Growth. D. Maturity. E. Decline. B GT Fa
175.
At the __________ stage of the life cycle of entrepreneurial firms, the management challenge is one of coping with growth and takeoff. A. Birth. B. Breakthrough. C. Growth. D. Maturity. E. Decline. B GT Fa
176.
In the __________stage of the life cycle of entrepreneurial firms, the entrepreneur experiences the advantages of market success and financial stability, while also facing continuing challenges of meeting the needs for professional management skills. A. Birth. B. Breakthrough. C. Growth. D. Maturity. E. Decline. D GT Fa
177.
Activities that focus on refining the strategy, continuing growth, and managing for success occur in the __________ stage of the life cycle of entrepreneurial firms. A. Birth. B. Breakthrough. C. Growth. D. Maturity. E. Decline. D GT Fa
Chapter 6: Entrepreneurship and Small Business
221
178.
At the __________ stage of the life cycle of entrepreneurial firms, the management challenge is one of investing wisely and staying flexible. A. Birth. B. Breakthrough. C. Growth. D. Maturity. E. Decline. D GT Fa
179.
The life cycle of entrepreneurial firms __________. A. Poses different management challenges at each stage. B. Requires different management competencies at each stage. C. Requires entrepreneurs to address the issue of managerial succession at each stage by changing and/or refining his/her skills, passing management control on to professionals, or selling the business. D. All of the above. E. None of the above. D GT Fa
Writing the Business Plan 180.
When people start new businesses, they can greatly benefit from having a good __________. A. Operating budget. B. Profit forecast. C. Employee manual. D. Product demand forecast. E. Business plan. E GT Fa
181.
A(n) __________ describes the direction for a new business and the financing needed to operate it. A. Strategic contingencies analysis. B. Business plan. C. Operating plan. D. SWOT analysis. E. Operating budget. B 158 KT Fa
182.
Which of the following items should be included in a business plan? A. Executive summary. B. Company description. C. Marketing strategy.
D. Alternatives B and C should be included in a business plan. E. Alternatives A, B, and C should be included in a business plan. E MN Fa
222
Schermerhorn & Wright: Management Fundamentals
183.
A business plan should include all of the following items EXCEPT: A. Overview of business purpose and highlight of key elements of the plan. B. Description of the organization’s decision-making and communications systems. C. Nature of the industry, including economic trends, important legal or regulatory issues, and potential risks. D. Product characteristics, distribution, promotion, pricing, and market research. E. Amount of funds needed to run the business, amount available, and amount requested from new sources. B MN Fa
184.
Which of the following items should NOT be included in a business plan? A. Market description. B. Operations description. C. Change management strategy. D. Staffing description. E. Products and services description. C MN Fa
Choosing the Form of Ownership 185.
A __________ is an individual or a married couple pursuing business for a profit. A. Sole proprietorship B. Partnership. C. Corporation. D. Limited liability partnership. E. Angel investor. A KT Fa
186.
A __________ is formed when two or more people agree to contribute resources to start and operate a business together. A. Sole proprietorship B. Partnership. C. Corporation. D. Limited liability partnership. E. Angel investor. B KT Fa
187.
A __________ consists of business partners who agree on the contribution of resources and skills to the new venture, and on the sharing of profits, losses, and management responsibilities. A. Professional partnership. B. General partnership. C. Limited partnership. D. Unlimited partnership. E. Limited liability partnership. B GT Fa
Chapter 6: Entrepreneurship and Small Business
223
188.
A __________ consists of a general partner and one or more “limited” partners who do not participate in day-to-day management of the business. A. Professional partnership. B. General partnership. C. Limited partnership. D. Unlimited partnership. E. Limited liability partnership. C GT Fa
189.
A __________ limits the liability of one partner for the negligence of another partner. A. Professional partnership. B. General partnership. C. Limited partnership. D. Unlimited partnership. E. Limited liability partnership. E GT Fa
190.
A __________ is a legal entity that exists separate from its owners, protects the owners from personal liability, and gives the firm a life of its own beyond that of its owners. A. Sole proprietorship B. Partnership. C. Corporation. D. Limited liability partnership. E. Angel investor. C KT Fa
191.
A __________ is a hybrid business form combining advantages of the sole proprietorship, partnership, and corporation. A. Sole proprietorship B. Partnership. C. Corporation. D. Limited liability corporation. E. Venture capitalist. C KT Fa
192.
Which of the following statements about the limited liability corporation (LLC) is/are accurate? A. For liability purposes, the LLC functions like a corporation , protecting the owners assets against claims made against the company. B. For tax purposes, the LLC functions as a partnership in the case of multiple owners. C. For tax purposes, the LLC functions as a sole proprietorship in the case of a single owner. D. B and C. E. A, B, and C. E GT Ap
Financing the New Venture 193.
The major source(s) of outside financing for an entrepreneurial start-up are __________. A. Debt financing and equity financing. B. Governmental grants. C. Foundation grants. D. Alternatives A and B. E. Alternatives A and C. A GT Fa
224
Schermerhorn & Wright: Management Fundamentals
194.
Debt financing involves borrowing money from __________ and repaying it over time with interest. A. Another person. B. A bank. C. A financial institution. D. All of the above. E. None of the above. D KT Fa
195.
__________ involve(s) exchanging ownership shares in the business in return for outside investment monies. A. Debt financing. B. Equity financing. C. Commodities marketing. D. Futures trading. E. Money market instruments. B KT Fa
196.
Which of the following are possible sources of equity financing for entrepreneurs? A. Venture capitalists. B. Initial public offerings. C. Angel investors. D. Alternatives A and C. E. Alternatives A, B, and C. E GT Fa
197.
Equity financing for entrepreneurs is usually obtained from __________. A. Venture capitalists. B. Entrepreneurial support systems. C. Pension funds. D. Investment bankers. E. Brokerage firms. A GT Fa
198.
__________ are companies that pool capital and make investments in new ventures in return for an equity stake in the business. A. Entrepreneurial support systems. B. Venture capitalists. C. Investment bankers. D. Brokerage firms. E. Pension funds. B KT Fa
199.
__________ tend to focus on relatively large investments and they usually take a management role in order to grow the business and add value as soon as possible. A. Entrepreneurial support systems. B. Investment bankers. C. Brokerage firms. D. Venture capitalists. E. Pension funds. D KT Fa
Chapter 6: Entrepreneurship and Small Business
225
200.
What does the financial acronym “IPO” stand for? A. Internal payment option. B. Investment portfolio offering. C. Initial public offering. D. Investor’s preferred option. E. Internal portfolio opinion. C KT Fa
201.
Sometimes an entrepreneurial venture becomes a candidate for an __________ in which shares of stock in the business are sold to the public and begin trading on a major stock exchange. A. Equity takeover. B. Initial public offering. C. Employee stock ownership plan. D. Leveraged buyout. E. Risky investment shift. B KT Fa
202.
A successful __________ enhances the value of the original investments of the venture capitalist and the entrepreneur. A. Leveraged buyout. B. Risky investment shift. C. Equity takeover. D. Initial public offering. E. Employee stock ownership plan. D GT Fa
203.
A(n) __________ is a wealthy individual who is willing to make an investment in return for equity in a new venture. A. Angel investor. B. Benevolent investor. C. Rich investor. D. Benevolent businessperson. E. Takeover specialist. A KT Fa
204.
Which of the following statements about angel investors is/are accurate? A. When venture capital is not available to the entrepreneur, the angel investor is a financing option. B. Angel investors are helpful in the very early startup stage of an entrepreneurial venture. C. The presence of angel investors can help attract venture capital funding that might not be available otherwise. D. All of the above. E. None of the above. D GT Fa
226
Schermerhorn & Wright: Management Fundamentals
ENTREPRENEURSHIP AND BUSINESS DEVELOPMENT (STUDY QUESTION 4) Entrepreneurship and Large Enterprises 205.
Which of the following statements is NOT accurate? A. Just like smaller organizations, large organizations depend on the entrepreneurial spirit. B. High performance is increasingly based on employees’ entrepreneurial behaviour. C. Creativity and innovation are important to continued success in dynamic and competitive environments, D. High performance relies on the contributions of workers who are willing to assume risks. E. Capitalizing on entrepreneurial behaviours is no more challenging in large organizations than it is in small organizations. E GT Fa
206.
__________ is entrepreneurial behaviour displayed by people or subunits operating within large organizations. A. Innovation. B. Creativity. C. New venture leadership. D. Intrapreneurship. E. Angel investing. D KT Fa
207.
Sometimes a large organization seeks to overcome its natural tendencies toward stability, rigidity, and risk avoidance by encouraging entrepreneurial behaviour on the part of its employees and subunits. When an organization does this, it is encouraging __________. A. Innovation. B. Intrapreneurship. C. Creative thinking. D. Independence. E. Entrepreneurship. B GT Ap
208.
Through the efforts of __________, large organizations are able to turn new ideas into profitable new products, services, and business ventures. A. Intrapreneurs. B. Entrepreneurs. C. Venture capitalists. D. Angel investors. E. Family businesses. A GT Fa
209.
To realize the benefits of intrapreneurship, managers of large organizations often find that success depends on the ability of large organizations to __________. A. Act like their competitors. B. Act like small organizations. C. Raise significant amounts of money. D. Develop slick advertising campaigns. E. Vertically integrate their operations. B GT Fa
Chapter 6: Entrepreneurship and Small Business
227
210.
Small organizational subunits where teams are allowed to work together in a unique setting that is highly creative and free of the operating restrictions of the larger parent organization are known as __________. A. Quality innovation circles. B. Skunkworks. C. Venture teams. D. Product innovation circles. E. Creative cliques. B KT Fa
211.
Suppose that you work for a large corporation and have been recently assigned to the skunkworks. This job assignment means that you have been assigned to __________. A. A disciplinary and training program for poor performing employees. B. An organizational subunit that produces foul-smelling chemicals. C. A small organizational subunit where the people can be highly creative and are free of many of the restrictions of the larger organization. D. Work on less desirable tasks. E. Engage in corporate espionage. C KT Ap
Business Incubation 212.
One of the advantages of __________ is that it takes place in a larger organization that can be supportive in terms of resources and other forms of startup support. A. Partnerships. B. Intrapreneurship. C. Angel investing. D. Venture capitalism. E. First-mover advantage. B GT Fa
213.
Entrepreneurship and new venture creation are __________ A. Creative and exciting prospects. B. Very challenging in terms of complexity. C. Potentially daunting with respect to required resources. D. Alternatives A and B. E. Alternatives A, B, and C. E GT Fa
214.
A(n) __________ can help support entrepreneurial motivation without the discouragement of startup requirements. A. Business incubator. B. Small business mentor. C. Skunkworks. D. Industrial psychologist. E. Angel investor. A GT Fa
228
Schermerhorn & Wright: Management Fundamentals
215.
A __________ is a special facility that offers space, a variety of shared administrative services, and management advice to help small businesses get started. A. Partnership. B. Family business. C. Business incubator. D. Small business mentoring office. E. Skunkworks. B KT Fa
216.
Business incubators share the common goal of __________. A. Helping to build successful new businesses. B. Helping to build new businesses that create jobs. C. Helping to build new businesses that improve economic development. D. All of the above. E. None of the above. D GT Fa
Small Business Development Centers 217.
The United States Small Business Administration works with state and local agencies to support a network of over 1000 __________ nationwide. A. Small Business Administration offices. B. Small Business Development Centers. C. Chambers of Commerce. D. Business incubators. E. Small business angel investors. B GT Fa
218.
__________ offer guidance and support to small business owners in how to set up and run a business operation. A. Small business skunkworks. B. Small business angel investors. C. Business infomercial organizations. D. Small Business Development Centers. E. Chambers of Commerce. D GT Fa
219.
Small Business Development Centers offer guidance to __________ A. Actual and prospective entrepreneurs. B. Actual and prospective small business owners. C. Actual and prospective intrapreneurs. D. Both A and B. E. Both A and C. D GT Fa
220.
__________ are frequently affiliated with college or universities. A. Chambers of Commerce. B. Small Business Administration offices. C. Small Business Development Centers. D. Venture capitalists. E. Small business angel investors. C GT Fa
Chapter 6: Entrepreneurship and Small Business 221.
229
Small Business Development Centers that are associated with colleges and universities offer opportunities for students to learn about the nature of __________ and __________. A. Entrepreneurship intrapreneurship. B. Small business entrepreneurship. C. Small business intrapreneurship. D. Large business entrepreneurship. E. Large business intrapreneurship. B GT Fa
Essay Questions 222.
Describe the key personal traits and characteristics of entrepreneurs. Which two or three of these traits and characteristics do you think are most important for entrepreneurial success? Why? Suggested Answer: The personal traits and characteristics that are typically associated with entrepreneurs are the following: • • • • • • • •
Internal locus of control –– entrepreneurs believe that they control their own destiny; they are self-directing and like autonomy. High energy level –– entrepreneurs are persistent, hard working, and willing to exert extraordinary efforts to succeed. High need for achievement –– entrepreneurs are motivated to act individually to accomplish challenging goals; they thrive on performance feedback. Tolerance for ambiguity –– entrepreneurs are risk takers; they tolerate situations with high degrees of uncertainty. Self-confidence –– entrepreneurs feel competent, believe in themselves, and are willing to make decisions. Passion and action-orientation –– entrepreneurs try to act ahead of problems; they want to get things done and not waste valuable time. Self-reliance and desire for independence –– entrepreneurs want independence; they are self-reliant; they want to be their own boss, not work for others. Flexibility ⎯ entrepreneurs are willing to admit problems and errors, and to change a course of action when plans are not working.
Each student should identify the two or three personal traits characteristics that s/he thinks is most important and provide appropriate supporting reasons.
223.
Describe the backgrounds and experiences that tend to distinguish entrepreneurs from other people. Suggested Answer: Entrepreneurs tend to have backgrounds and experiences that differ from other people. The key elements of entrepreneurs’ backgrounds and experiences are the following: •
Entrepreneurs tend to have parents who were entrepreneurs or self-employed.
230
Schermerhorn & Wright: Management Fundamentals • • • • • •
224.
Entrepreneurs tend to be raised in families that encourage responsibility, initiative, and independence. Entrepreneurs often try more than one business venture. Entrepreneurs tend to have prior career or personal experience in the business area or industry in which they develop an entrepreneurial venture. Most entrepreneurs start their businesses between the ages of 22 and 45; however, age is no barrier. Entrepreneurs have strong interests in creative production and enterprise control. Entrepreneurs seek independence and the sense of mastery that comes with success.
Explain why small businesses often fail and what can be done to help avert failure. Suggested Answer: Small businesses have a high failure rate –– 60 to 80 percent of new businesses fail in their first five years of operation. Reasons for small business failure include lack of experience, lack of expertise, lack of strategy and strategic leadership, poor financial control, growing too fast, insufficient commitment, and ethical failure. Business incubators and small business development centers are resources upon entrepreneurs can draw and which can help them to avert failure. A business incubator is a special facility that offers space, a variety of shared administrative services, and management advice to help small businesses get started. Small business development centers offer guidance to entrepreneurs and small business owners –– actual and prospective ⎯ in how to set up and successfully run a business operation.
225.
Describe the life cycle of entrepreneurial firms and the management challenges that occur at each stage. Suggested Answer: The life cycle of entrepreneurial firms follows a predictable pattern of birth, breakthrough, and maturity. In the birth stage, the entrepreneur struggles to get the new venture established and survive long enough to test the viability of the underlying business model in the marketplace. The key challenges in the birth stage are establishing the firm, getting customers, and finding financing. In the breakthrough stage, the business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly. The key challenges in the breakthrough stage are working on finances, becoming profitable, and growing. In the maturity stage, the entrepreneur experiences the advantages of market success and financial stability, while also facing continuing management challenges of remaining competitive in a changing environment. The key challenges in the maturity stage are refining the strategy, continuing growth, and managing for success.
226.
What is a business plan? What are the basic elements that should be incorporated into a business plan?
Chapter 6: Entrepreneurship and Small Business
231
Suggested Answer: A business plan describes all the details necessary to set the direction for a new business and to obtain the necessary financing to operate it. The items listed below are elements that should be incorporated into a business plan: • • • • • • • • • • •
Executive summary –– overview of business purpose and highlights of key elements of the plan. Industry analysis –– nature of the industry, including economic trends, important legal or regulatory issues, and potential risks. Company description –– mission, owners, and legal form. Products and services description –– major goods or services, with special focus on uniqueness vis-à-vis competition. Market description –– size of market, competitor strengths and weaknesses, and five-year sales goals. Marketing strategy –– product characteristics, distribution, promotion, pricing, and market research. Operations description –– manufacturing or service methods, supplies and suppliers, and control procedures. Staffing description –– management and staffing skills needed and available, compensation, and human resource management systems. Financial projection ⎯ cash flow projections for one to five years, break-even points, and phased investment capital. Capital needs –– amount of funds needed to run the business, amount available, and amount requested from new sources. Milestones ⎯ a timetable of dates showing when key stages of the new venture will be completed.
Chapter 7:
INFORMATION AND DECISION MAKING True/False Questions CHAPTER INTRODUCTION 1.
More information about more things is being made available to more people in organizations more quickly than ever before. T GT Ap
2.
To compete successfully in an unforgiving business environment, companies must find new and faster ways of sharing critical information and leveraging knowledge resources. T GT Ap
INFORMATION TECHNOLOGY AND THE CHANGING WORKPLACE (STUDY QUESTION 1) 3.
A knowledge worker is someone whose value to the organization depends on intellect rather than physical capabilities. T KT Fa
4.
Intellectual capital is the shared knowledge of a workforce that can be used to create wealth T KT Fa
5.
Information competency is the ability to understand computers and use them to best advantage. F GT Fa
6.
Computer competency is the ability to utilize computers and information technology to locate, retrieve, evaluate, organize, and analyze information for decision making. F GT Fa
How IT Is Changing Business 7.
Electronic commerce is the process of buying and selling goods electronically through the use of the Internet. T KT Fa
8.
B2B e-commerce sells directly to customers over the Internet. F GT Fa
233
234
Schermerhorn & Wright: Management
9.
Through B2C e-commerce businesses use the Internet to collabourate and make transactions with each other. F GT Fa
10.
Securing an on-line identity, establishing a Web presence, enabling e-commerce, providing ecommerce and customer relationship management, and utilizing a service application model are the typical sequential stages in the development of e-commerce. T GT Ap
How IT Is Changing Organizations 11.
As a result of the increasing use of information technology, individuals and teams can communicate more easily and share information, and coordination and control among decision makers can be increased T GT Ap
12.
Neither supply chain management nor customer relationship management can be improved with information technology (IT) connections. F GT Ap
13.
The increasing use of information technology (IT) helps organizations manage their relationships with customers and suppliers, and allows outsourcing and other business contracts to be continuously and efficiently managed. T GT Ap
How IT Is Changing the Office 14.
Progressive companies invest in information technology because the business environment demands speed to market, quick response time, and fast cycle time. T GT Fa
15.
Instant messaging refers to the instantaneous communication among persons online at the same time. T KT Fa
16.
Peer-to-peer file sharing refers to personal computers being directly connected to one another over the Internet. T KT Fa
INFORMATION AND THE MANAGEMENT PROCESS (STUDY QUESTION 2) What Is Useful Information? 17.
Data are raw facts and observations. T KT Fa
18.
Information is data made useful and meaningful for decision making. T KT Fa
Chapter 7: Information and Decision Making 19.
235
Timeliness, quality, completeness, relevance, and understandability are characteristics of useful information. T GT Fa
Information Needs in Organizations 20.
The information that is used to manage the complex relationship between an organization and its environment consists of both intelligence information and public information. T GT Fa
21.
A good information system provides managers with “intelligence information” concerning the events and conditions of an organization’s external environment T GT Fa
22.
A good information system enables managers to provide external stakeholders with “public information” that helps in image building, product advertising, and financial reporting for taxes. T GT Fa
23.
The information needs of managers are the same at all levels in the organization’s hierarchy of authority. F GT Ap
24.
Lower-level managers use information to stay informed and to formulate strategies, objectives, and long-term plans; to develop policies; and to make strategic decisions. F GT Ap
25.
Top-level managers use information to make speedy decisions and take actions in conducting daily business operations. F GT Ap
Information Systems 26.
Information systems use the latest in information technology to collect, organize, and distribute data in such as way that they become meaningful as information. T KT Fa
27.
A management information system is designed to use information technology to meet the specific information needs of managers as they make a variety of decisions on a day-to-day basis. T KT Fa
28.
A decision support system is an interactive information system that allows users to organize and analyze data for solving complex and sometimes unstructured problems.
T 29.
KT
Fa
Decision support systems utilize special software to allow users to interact directly with a computer to help make decisions for solving complex and sometimes unstructured problems involving issues such as mergers and acquisitions, plant expansions, new product development, and stock portfolio management. T GT Ap
236
Schermerhorn & Wright: Management
30.
An interactive computer-based information system that facilitates the efforts of several people working together in solving complex and unstructured problems is a communal information system. F GT Fa
31.
Groupware is a group decision support system that allows several people to simultaneously work on a file or database and work together on computer networks. T KT Fa
32.
Groupware facilitates information exchange but tends to inhibit group decision making. F GT Ap
33.
A decision support system refers to a work team that assists a manager is evaluating decision alternatives. F GT Fa
34.
Continuing developments in the use of groupware are expanding the opportunities for use of teams in organizations without the requirement of face-to-face meetings. T GT Fa
35.
Artificial intelligence is a field of science that is interested in building computer systems with the capacity to reason like people do. T GT Fa
36.
Expert systems are computer programs that use artificial intelligence to help managers analyze and solve problems by mimicing the thinking of human experts. T KT Fa
37.
When using information systems, managers should not make the mistake of assuming that the newest technology is always the best technology nor should they assume that nothing would ever go wrong with the computer. T MN Fa
38.
Extranets and enterprise portals are networks of computers that allow employees, by password access, to share databases and communicate electronically. F KT Fa
39.
The goal of integrating computer systems and software into intranets and corporate portals is to minimize data entry problems and enable more information to be stored in the information systems. F GT Fa
40.
The goal of integrating computer systems and software into intranets and corporate portals is to efficiently improve integration and communication throughout the organization, while making it easy for employees to access key services. T GT Fa
41.
A computer network that uses the public Internet to allow communication between the organization and special elements in its external environment is called an extranet. T KT Fa
Chapter 7: Information and Decision Making
237
42.
Intranets and corporate portals allow communication and data sharing between the organization and special elements in the external environment. F KT Fa
43.
Electronic data interchange uses controlled access to enterprise portals to enable firms to electronically transact business with each other. T KT Fa
Managers as Information Processors 44.
The interpersonal, informational, and decisional managerial roles identified by Henry Minztberg involve communication and information processing. T GT Fa
45.
Managers use information in fulfilling the management functions of planning, organizing, leading, and controlling. T GT Fa
46.
Information technology utilization by managers allows for better and more timely access to useful information, as well as for involving more people in the planning process. T GT Ap
47.
Information technology utilization by managers allows for more ongoing and informed communication among all parts of the organization, helping ensure better coordination and integration. T GT Ap
48.
Information technology utilization by managers allows for better and more frequent communication with all organization members and key environmental stakeholders. T GT Ap
49.
Information technology utilization by managers allows for greater reliance on computer and information technology in addressing the challenges faced by an organization. F GT Ap
50.
Information technology utilization by managers allows for more immediate and complete measurement of performance results, thereby allowing real-time solutions to performance problems. T GT Ap
INFORMATION AND MANAGERIAL DECISIONS (STUDY QUESTION 3) 51.
A problem refers to any difference between an actual situation and a desired situation. T GT Fa
52.
A performance deficiency occurs when an actual situation turns out either better than anticipated or offers the potential to be better than anticipated. F GT Fa
238
Schermerhorn & Wright: Management
53.
A performance opportunity occurs when actual performance is less than desired performance. F GT Fa
54.
Problem solving is the process of choosing among alternative courses of action for dealing with a problem. F KT Fa
55.
Problem solving is the process of identifying a discrepancy between actual and desired states, and then taking appropriate corrective action. T KT Fa
56.
A decision is a choice among alternative possible courses of action. T KT Fa
57.
Problem solving and decision making are dependent on quality information being available to the right people at the right time. T GT Ap
Types of Managerial Decisions 58.
Programmed decisions use solutions already available from past experience to solve structured problems. T KT Fa
59.
Unstructured problems are ones that are familiar, straightforward, and clear with respect to the information needs. F KT Fa
60.
A programmed decision is made when students are placed on academic probation for not maintaining a minimum grade point average. T GT Ap
61.
Unstructured problems are full of ambiguities and information deficiencies, and require nonprogrammed decisions that craft novel solutions to meet the demands of a unique situation. T KT Fa
62.
A programmed decision is made when a new and unfamiliar problem arises and a novel solution is crafted to meet the demands of the unique situation at hand. F KT Fa
63.
Consideration of an employee’s request for tuition reimbursement for a job-related course taken at the local community college is a good example of a nonprogrammed decision. F GT Ap
64.
Most problem situations encountered by higher-level managers can be classified as routine and structured. F GT Ap
Chapter 7: Information and Decision Making
239
65.
A crisis is an unexpected problem that can lead to disaster if not resolved quickly and appropriately. T KT Fa
66.
Most managers react to crisis situations by readily involving others in solving the problem. F GT Ap
67.
Proactive managers try to identify those situations that are likely to be susceptible to a crisis, and then develop basic contingency plans for crisis management. T GT Ap
68.
A crisis may be made worse if critical decisions are made with poor or inadequate information and from a limited perspective. T GT Ap
69.
High context planning refers to the preparation of managers and others to deal with unexpected high-impact events that threaten an organization’s well-being. F KT Fa
70.
An appropriate guideline for crisis management is to take the time to understand what is going on with the crisis situation and the conditions under which the crisis must be resolved. T MN Ap
71.
An appropriate rule for crisis management is to never back off of a crisis because there will never be a better opportunity than the present time to resolve a crisis situation. F MN Ap
72.
An appropriate guideline for crisis management is to never “fight fire with fire” by starting another crisis to get people’s attention. F MN Ap
Decision Environments 73.
A certain environment is the decision environment in which complete information is available about possible alternative courses of action and their outcomes. T KT Fa
74.
The ideal, but seldom achieved, condition for managerial problem solving is characterized by normality, because that is the condition under which all the business school principles work. F GT Ap
75.
When decision makers lack complete information on action alternatives and their consequences but have some knowledge of the probabilities associated with the various outcomes, they are operating in an environment of uncertainty. F KT Fa
76.
When managers are unable to even assign probabilities to the outcomes attached to various problem-solving alternatives, a state of crisis exists. F KT Fa
240 77.
Schermerhorn & Wright: Management Uncertainty is the most difficult decision environment for any manager. T GT Ap
Problem-Solving Styles 78.
Problem avoiders ignore information that would otherwise signal the presence of a problem; problem seekers try to solve problems as they arise; and problem solvers actively process information and look for problems to solve or opportunities to explore. F GT Fa
79.
Managers who ignore information that would otherwise signal the presence of a problem are problem deniers. F GT Fa
80.
Problem solvers are managers who try to solve problems but only when forced to by the situation. T GT Fa
81.
Problem seekers actively process information and constantly look for problems to solve or opportunities to explore. T GT Fa
82.
A person who approaches problems in a rational, step-by-step, and analytical fashion is engaging in systematic thinking. T KT Fa
83.
Systematic thinkers are likely to deal with many aspects of a problem simultaneously, consider hunches, and jump quickly from one issue to another. F GT Fa
84.
Systematic thinkers are likely to break a complex problem into smaller components, make a plan before taking action, and search for information to facilitate problem solving in a step-by-step fashion. T GT Fa
85.
Intuitive thinkers approach problems in a flexible and spontaneous fashion. T KT Fa
86.
Intuitive thinkers will broadly and quickly evaluate a problem situation, explore and abandon alternatives very quickly, and consider a number of alternatives and options simultaneously. T GT Fa
87.
Managers should use systematic thinking in high uncertainty situations where limited facts and few decision precedents exist. F GT Ap
88.
Multidimensional thinking is the capacity to view many problems at once, in relationship to one another, and across long and short time horizons. T GT Fa
Chapter 7: Information and Decision Making 89.
241
Intuitive opportunism is the ability to remain focused on long-term objectives while being flexible in dealing with short-term problems and opportunities in a timely manner. F KT Fa
THE DECISION-MAKING PROCESS (STUDY QUESTION 4) 90.
The decision-making process involves a set of activities and events that begins with identification of a problem, includes making a decision, and ends with the evaluation of results. T GT Fa
91.
Decision making is a six-step process that begins with generating alternative solutions and ends with implementing the solution. F GT Fa
Identify and Define the Problem 92.
The first step in the decision-making process involves gathering information, processing information, and deliberating. T KT Fa
93.
A key aspect of problem identification and definition involves clarifying goals by determining exactly what a decision should accomplish. T GT Ap
94.
Common mistakes in defining problems include: focusing on symptoms instead of causes, choosing the wrong problem to address, and defining the problem too broadly or too narrowly. T GT Fa
Generate and Evaluate Alternative Courses of Action 95.
Generation and evaluation of alternative course of action is the decision making stage at which people assemble the facts and information that will be helpful for problem solving. T GT Fa
96.
A cost/benefit analysis compares the costs of implementing an alternative with its expected benefits. T KT Fa
97.
Typical criteria for evaluating alternative solutions include benefits, costs, timeliness, acceptability, and ethical soundness. T GT Fa
98.
The second step of the decision-making process will be effective when the pros and cons of possible alternative courses of action are identified. T GT Fa
242
Schermerhorn & Wright: Management
99.
The second step of the decision-making process will be effective when the search for alternatives is completed rapidly. F GT Fa
100.
The second step of the decision-making process will be effective when alternatives meet ethical standards that are acceptable to the organization’s various stakeholders. T GT Fa
Decide on a Preferred Course of Action 101.
The third step of the decision-making process involves selecting a preferred course of action. T GT Fa
102.
The behavioural decision model describes decision making with complete information, where the manager faces a clearly defined problem and knows all possible action alternatives as well as their consequences. F KT Fa
103.
A manager who chooses the alternative giving the absolute best solution to a problem is making an optimizing decision. T KT Fa
104.
According to classical decision theory, managers make rational choices in a certain world because they have complete information regarding all possible alternatives and their consequences. T GT Fa
105.
According to classical decision theory, managers choose the satisfactory alternative. F GT Fa
106.
The limited information-processing capabilities of human beings produce cognitive limitations that prevent people from becoming fully informed and making perfectly rational decisions. T GT Fa
107.
Optimal rationality indicates that decisions are rational only within the boundaries defined by the available information. F GT Fa
108.
The behavioural decision model describes decision making where people are assumed to act only in terms of what they perceive about a given situation. T KT Fa
109.
When a manager chooses the first satisfactory alternative that comes to his or her attention during the decision-making process, satisficing occurs. T KT Fa
110.
According to the behavioural decision model, managerial decisions are rational only within the boundaries defined by available information. T GT Fa
Chapter 7: Information and Decision Making
243
111.
According to the behavioural decision model, competent managers ⎯ even with cognitive limitations ⎯ can make perfectly rational decisions in highly ambiguous situations. F GT Fa
112.
The behavioural decision model is particularly useful in describing how people make decisions under conditions of risk and uncertainty. T GT Fa
Implement the Decision Solution 113.
Implementation is the decision making stage at which problem-solving actions are initiated. T GT Fa
114.
The satisficing error refers to the failure to adequately involve those persons whose support is necessary to ensure a decision’s implementation. F GT Fa
115.
The failure to adequately involve the people whose support is necessary to ensure a plan’s implementation is a major reason for difficulties in the implementation stage of decision making. T GT Fa
Evaluate Results 116.
The final stage of the decision-making process is evaluating results. T GT Fa
117.
In the final stage of the decision-making process, the manager needs to examine only negative consequences of the chosen course of action.
F 118.
GT
Ap
In the final stage of the decision-making process, a modified or new solution may need to be generated if the original solution appears to be inadequate.
T
GT
Ap
ISSUES IN MANAGERIAL DECISION MAKING (STUDY QUESTION 5) Decision-Making Traps 119.
When people face complex environments and have limited information, they often use heuristics to simplify decision making. T KT Fa
120.
The anchoring and adjustment heuristic occurs when people use information “readily available” from memory as a basis for assessing a current situation or event. F GT Fa
244
Schermerhorn & Wright: Management
121.
The availability heuristic occurs when people assess the likelihood of something occurring based on its similarity to a stereotyped set of occurrences. F GT Fa
122.
The representativeness heuristic involves making decisions based on alterations to a previously existing value or starting point. F GT Fa
123.
When a problem is evaluated and resolved in the positive or negative context in which it is perceived, a framing error occurs. T KT Fa
124.
Escalating commitment refers to the tendency to increase effort and perhaps apply more resources to pursue a course of action that is not working. T KT Fa
125.
Avoiding the escalation of commitment trap in decision making can be accomplished by: setting advance limits on involvement, determining why the particular course of action is right, keeping in mind the costs involved, and not letting others influence your decision. T MN Fa
Individual vs. Group Decision Making 126.
In the context of individual and group decision making, the “right” decision method is the one that provides for a quality decision even if it is not timely. F GT Fa
127.
In the context of individual and group decision making, the “right” decision method is the one that promotes the commitment of people who will be involved in implementing the decision. T GT Fa
128.
The potential disadvantages of group decision making include: greater amounts of information, knowledge, and expertise are available to solve problems; more action alternatives are examined; and understanding and acceptance of outcomes by members is increased. F GT Fa
129.
The potential advantages of group decision making include: individual team members feeling pressure to conform to the wishes of others, the occurrence of minority domination; and the consumption of time. F GT Fa
Ethical Decision Making 130.
Any decision should meet the ethics double check. T GT Fa
131.
The “ethics double check” should address the questions: “How would I feel if my family found out about this decision?” and “How would I feel if this decision were published in the local newspaper?” T GT Fa
Chapter 7: Information and Decision Making
245
132.
The “ethics double check” should be done during step 2of the decision-making process. F GT Fa
133.
Any discomfort in answering the “ethics double check” questions signifies that the decision may have ethical shortcomings. T GT Fa
134.
Only major managerial decisions need to meet the criteria of the “ethics double check.” F GT Fa
135.
Examining the ethics of a proposed decision may result in both better decisions and the prevention of costly litigation. T GT Fa
136.
Managers can proceed with confidence in implementing a decision solution when the decision meets criteria of utility, rights, justice, and caring T GT Ap
Knowledge Management and Organizational Learning 137.
Knowledge management describes the processes through which organizations develop, organize, and share knowledge to achieve competitive advantage. T KT Fa
138.
An organization with effective knowledge management will ensure that its intellectual assets are well managed and continually enhanced and that knowledge is used as a strategic and integrative force in the organization. T GT Ap
139.
A chief information officer is responsible for energizing learning processes and making sure that an organization’s portfolio of intellectual assets is well-managed and continually enhanced. F GT Fa
140.
An organization that is able to continuously change and improve its performance based upon lessons of experience is known as an experienced organization. F KT Fa
141.
Learning organizations place high value on developing the ability to learn and then making that learning continuously available to all organizational members. T GT Ap
142.
Learning organizations can learn from their own experiences as well as the experiences of contractors, suppliers, partners, and customers. T GT Ap
246
Schermerhorn & Wright: Management
Multiple Choice Questions CHAPTER INTRODUCTION 143.
Which of the following statements accurately describe the impact of information technology on organizations? A. More information about more things is being made available to more people in organizations more quickly than ever before. B. Since knowledge is an irreplaceable resource, organizations should always seek to grow and create intellectual capital C. To compete successfully in an unforgiving business environment, companies must find new and faster ways of sharing critical information and leveraging knowledge resources. D. All of the above. E. None of the above. D GT Ap
INFORMATION TECHNOLOGY AND THE CHANGING WORKPLACE (STUDY QUESTION 1) 144.
A worker whose value to the organization depends on intellect rather than physical capabilities is known as a(n) __________. A. Knowledge worker. B. Effete intellectual snob. C. Limited ability worker. D. Computer guru. E. Capitalist. A KT Fa
145.
Intellectual capital can be defined as __________. A. The use of new ideas to create a competitive advantage by producing high quality products. B. The concentration of wealth in technologically advanced countries. C. The shared knowledge of a workforce that can be used to create wealth. D. A plan to promote higher education through annual fund raising events. E. The development of an organizational training program to increase information learning. C KT Fa
146.
__________ is the ability to understand computers and use them to best advantage. A. Intellectual capital. B. Computer competency. C. Information competency. D. Knowledge management. E. Computer systems support. B GT Fa
Chapter 7: Information and Decision Making 147.
247
__________ is the ability to utilize computers and information technology to locate, retrieve, evaluate, organize, and analyze information for decision making. A. Intellectual capital. B. Computer competency. C. Information competency. D. Knowledge management. E. Decision support management. C GT Fa
How IT Is Changing Business 148.
__________ is the process of buying and selling goods electronically through the use of the Internet. A. Information management. B. Electronic commerce. C. Information management. D. Robotics. E. The electronic office. B KT Fa
149.
__________ sells directly to customers over the Internet. A. A2B e-commerce B. B2B e-commerce. C. B2C e-commerce. D. B2D e-commerce. E. 3M e-commerce. C GT Fa
150.
__________ uses the Internet to collabourate and make transactions among businesses. A. 3M e-commerce. B. AAA e-commerce C. B2B e-commerce. D. B2C e-commerce. E. B2D e-commerce. C GT Fa
151.
Which of the following sequence accurately describes the stages of development in e-commerce? A. Establish a Web presence, secure an on-line identity, enable e-commerce, utilize a service application model, and provide e-commerce and customer relationship management. B. Establish a Web presence, enable e-commerce, secure an on-line identity, utilize a service application model, and provide e-commerce and customer relationship management. C. Secure an on-line identity, utilize a service application model, enable e-commerce, establish a Web presence, and provide e-commerce and customer relationship management. D. Secure an on-line identity, establish a Web presence, enable e-commerce, provide ecommerce and customer relationship management, and utilize a service application model. E. Utilize a service application model, secure an on-line identity, establish a Web presence, provide e-commerce and customer relationship management, and enable e-commerce. D GT Ap
248
Schermerhorn & Wright: Management
How IT Is Changing Organizations 152.
The increasing use of information technology has several implications for the internal operations of organizations. Which of the following is NOT one of these implications? A. Individuals and teams can communicate more easily and share information. B. Organizations can be flattened and operate with fewer levels of management. C. The speed of decision making can be decreased. D. Coordination and control among decision makers can be increased. E. Better and more timely use of information is promoted. C GT Ap
153.
All of the following statements about the impact of information technology (IT) are correct EXCEPT: A. People, teams, and departments are better connected by IT. B. Supply chain management is improved by IT connections. C. More things are done by outsourcing and partnerships using IT. D. Organizations are taller as IT expands management levels. E. Customer relationships management is improved by IT connections. D GT Ap
154.
The increasing use of information technology (IT) can help organizations better manage relationships with their environments in which of the following ways? A. IT helps organizations with customer relationship management. B. IT helps organizations work well with their resource suppliers. C. IT allows outsourcing and other business contracts to be continuously and efficiently managed. D. All of the above are ways in which IT can help organizations manage relationships with their environments. E. None of the above is a way in which IT can help organizations manage relationships with their environments. D GT Ap
How IT Is Changing the Office 155.
Progressive companies invest in information technology because the business environment demands __________. A. Speed to market. B. Quick response time. C. Fast cycle time. D. All of the above. E. None of the above. D GT Fa
156.
__________ refers to the instantaneous communication among persons online at the same time. A. Electronic surveillance. B. Instant messaging. C. Peer-to-peer file sharing. D. Global message sharing. E. Community-based messaging. B KT Fa
Chapter 7: Information and Decision Making 157.
249
__________ refers to personal computers being directly connected to one another over the Internet. A. Electronic surveillance. B. Instant messaging. C. Peer-to-peer file sharing. D. Global message sharing. E. Community-based messaging. C KT Fa
INFORMATION AND THE MANAGEMENT PROCESS (STUDY QUESTION 2) What Is Useful Information? 158.
__________ are raw facts and observations. A. Data. B. Information. C. Decisions. D. Perceptions. E. Files. A KT Fa
159.
__________ is __________ made useful and meaningful for decision making. A. Information understandability. B. Timeliness data. C. Data information. D. E-commerce information. E. Information data. E KT Fa
160.
Which of the following is not a characteristic of useful information? A. The information is available when needed. B. The information is accurate and reliable. C. The information is complete and sufficient for the task at hand. D. The information is appropriate for the task at hand. E. The information will enable the user to be involved in making decisions and increase the likelihood of his/her commitment to those decisions. E GT Fa
161.
Useful information meets the test of five criteria. These criteria are __________. A. Timeliness, quantity, completeness, relevance, and understandability. B. Timeliness, quality, completeness, relevance, and understandability. C. Timeliness, quality, completeness, relevance, and acceptance. D. Timeliness, quantity, quality, completeness, and acceptance. E. Timeliness, completeness, relevance, applicability, and acceptance. B GT Fa
250
Schermerhorn & Wright: Management
Information Needs in Organizations 162.
A good information system provides managers with “intelligence information” concerning __________. A. The activities of non-managerial personnel. B. The scores of job applicants on aptitude tests. C. The activities of key subunits within the organization. D. The events and conditions of organization’s external environment. E. The historical record of the organization’s performance accomplishments. D GT Fa
163.
Information systems are becoming increasingly important to organizations for the purpose of image building. Which of the following describes the type of information that is useful for image building? A. Customer feedback. B. Marketing information. C. Sales information. D. Public information E. Intelligence information. D GT Ap
164.
Which level of management uses information to stay informed and to formulate strategies, objectives, and long-term plans; to develop policies; and to make strategic decisions? A. Top-level managers. B. Middle-level managers. C. First-level managers. D. Top and middle managers. E. All levels of management. A GT Ap
165.
Which level of management uses information to make speedy decisions and take actions in conducting day-to-day business operations? A. Top-level managers. B. Lower-level managers. C. Nonsupervisory workers. D. All of the above. E. None of the above. B GT Ap
Information Systems 166.
__________ use the latest in information technology to collect, organize, and distribute data in such as way that they become meaningful as information. A. Network portals. B. Information systems. C. Computer networks. D. Systems analysis packages. E. Information control portals. B KT Fa
Chapter 7: Information and Decision Making
251
167.
__________ meets the specific information needs of managers as they make decisions on a daily basis. A. An extranet. B. An intranet. C. A management information system. D. An enterprisewide network. E. An interorganizational information system. C KT Fa
168.
A(n) __________ is an interactive information system that allows users to organize and analyze data for solving complex and sometimes unstructured problems. A. Managerial control system. B. Decision support system. C. Extranet. D. Intranet. E. Statistical analysis system. B KT Fa
169.
An interactive computer-based information system that facilitates the efforts of several people working together in solving complex and unstructured problems is a __________. A. Collective support system. B. Communal information system. C. Brainstorming support system. D. Group decision support system. E. Problem-solving system. D GT Fa
170.
The type of group decision support system that allows several people to simultaneously work on a file or database and work together on computer networks is called __________. A. A team network. B. Groupware. C. An informational link. D. A dynamic system. E. An interactive system. B KT Fa
171.
Which of the following statements accurately describes the practical advantages of groupware? A. Groupware facilitates information exchange B. Groupware facilitates group activities without the requirement of face-to-face meetings. C. Groupware facilitates group decision making. D. Groupware facilitates work scheduling. E. All of these statements accurately describe the practical advantages of groupware. E GT Ap
252
Schermerhorn & Wright: Management
172.
All but one of the following statements provides an accurate description of decision support systems. Which statement does NOT provide an accurate description? A. A decision support system refers to a work team that assists a manager is evaluating decision alternatives. B. A decision support system uses special software to allow users to interact directly with a computer to help make decisions for solving complex and sometimes unstructured problems. C. Decision support systems are available to assist managers in such business decisions as mergers and acquisitions, plant expansions, new product development, and stock portfolio management. D. A fast growing form of decision support system utilizes groupware to facilitate the interaction and work of team members who are on different shifts or are spread over large geographic distances. E. Continuing developments in the use of groupware are expanding the opportunities for use of teams in organizations without the requirement of face-to-face meetings. A GT Fa
173.
__________ is a field of science that is interested in building computer systems with the capacity to reason the way people do. A. Intellectual capital. B. Computer literacy. C. Groupware. D. Computer competency. E. Artificial intelligence. E GT Fa
174.
Computer programs that use artificial intelligence to help managers analyze and solve problems by mimicking the thinking of human experts are called __________. A. Artificial systems. B. Superior management software. C. Skilled programs. D. Expert systems. E. Virtual reality systems. D KT Fa
175.
Expert systems are computer programs designed to __________. A. Electronically communicate and transfer data to and from other computers. B. Assist managers with record-keeping and filing functions. C. Perform a variety of inventory control functions. D. Give management experts the ability to create charts and graphs from numerical data. E. Mimic the thinking of human experts and offer decision-making advice to the user. E KT Fa
Chapter 7: Information and Decision Making
253
176.
An airlines company uses a computer-based system to assist in scheduling maintenance for planes. The system combines the knowledge and insights associated with aircraft landing schedules of approximately three-dozen aircraft routing specialists. It uses about 500 decision rules to “reason” on behalf of the users. This system is __________. A. Designed to handle programmed decisions. B. An old-fashioned idea in the computer field. C. An expert system. D. Not likely to work efficiently and effectively. E. Likely to replace the judgments of new managers. C GT Ap
177.
Common information systems mistakes include all of the following EXCEPT which one? A. Don’t assume that more information is always better. B. Don’t assume that the newest technology is always best. C. Don’t assume that everyone understands computer etiquette. D. Don’t assume that everyone understands how an information system works. E. Don’t assume that the computer can replace human judgment. C MN Fa
178.
__________ and __________ are networks of computers that allow employees, by password access, to share databases and communicate electronically. A. Expert systems . electronic data interchanges. B. Decision systems enterprise portals. C. Intranets corporate portals. D. Extranets corporate portals. E. Internets enterprise portals. C KT Fa
179.
The goal of integrating computer systems and software into intranets and corporate portals is to __________. A. Enable more information to be stored in the systems. B. Efficiently improve integration and communication throughout the organization, while making it easy for employees to access key services. C. Minimize data entry problems. D. A and B. E. A and C. B GT Fa
180.
A computer network that uses the public Internet to allow communication between the organization and special elements in its external environment is called an __________. A. Intranet. B. Internalnet. C. Extranet. D. Externalnet. E. Infonet. C KT Fa
254
Schermerhorn & Wright: Management
181.
__________ and __________ allow communication and data sharing between the organization and special elements in the external environment. A. Expert systems . information portals. B. Decision systems enterprise portals C. Intranets corporate portals. D. Extranets enterprise portals. E. Internets enterprise portals. D KT Fa
182.
Suppose that a field salesperson uses e-mail to send a customer’s suggestion for a product modification to a product designer at company headquarters. After creating a computer-assisted design for the product, the designer uses the computer to pass it on simultaneously to engineering, manufacturing, finance, and marketing experts for their preliminary analysis. Information exchange between each of these experts and the customer takes place through the Internet. This is an example of the use of a(n) __________. A. Expert system. B. Enterprise portal. C. Data management system. D. Macro software system. E. Artificial intelligence network. B GT Ap
183.
__________ use(s) controlled access to enterprise portals to enable firms to electronically transact business with each other. A. Groupware. B. Electronic data interchange. C. Corporate portals. D. Intranets. E. Knowledge workers. B KT Fa
Managers as Information Processors 184.
Information technology has numerous important effects on the manager’s job. Which one of the following is NOT one of these effects? A. Only the informational managerial role identified by Henry Minztberg involves communication and information processing. B. Any manager must act as a nerve center of information flows, interacting with many sources in gathering, giving, and receiving information. C. Managers use information to make decisions in fulfilling the management functions of planning, organizing, leading, and controlling. D. Managers must have a personal commitment to computer and information competency, and a willingness to utilize developments in information technology to best advantage. E. Managers should be devoted to implementing and maintaining the very best available information systems. A GT Fa
Chapter 7: Information and Decision Making 185.
255
The advantages of appropriate information technology (IT) utilization include all of the following EXCEPT: A. MIS utilization allows for better and more timely access to useful information, as well as for involving more people in the planning process. B. MIS utilization allows for more ongoing and informed communication among all parts of the organization, helping ensure better coordination and integration. C. MIS utilization allows for better and more frequent communication with all organization members and key environmental stakeholders. D. MIS utilization allows for greater reliance on computer and information technology in addressing the challenges faced by an organization. E. MIS utilization allows for more immediate and complete measurement of performance results, thereby allowing real-time solutions to performance problems. D GT Ap
INFORMATION AND MANAGERIAL DECISIONS (STUDY QUESTION 3) 186.
Which of the following statements does NOT accurately characterize the nature of problems? A. A problem refers to any difference between an actual situation and a desired situation. B. A problem refers to any difference between an uncertain situation and a perceived situation. C. A performance deficiency occurs when actual performance is less than desired performance. D. A performance opportunity occurs when an actual situation turns out either better than anticipated or offers the potential to be better than anticipated. E. The challenge in dealing with any problem is to proceed with effective problem solving.
B 187.
Fa
A __________ occurs when actual performance is less than desired performance. A. Performance issue. B. Performance deficiency. C. Performance opportunity. D. Decision situation. E. Management challenge.
B 188.
GT
GT
Fa
A company purchases a new computer system for the purpose of streamlining the processing of customer orders. The company’s objective is to decrease processing time so that 98% of all orders are shipped within 24 hours of being received. After operating with the new system for three months, the company was shipping 92% of all orders within 24 hours. This situation is an example of a __________. A. Performance opportunity. B. Ethical situation. C. Performance deficiency. D. Work process weakness. E. Planning weakness. C GT Ap
256 189.
Schermerhorn & Wright: Management A __________ occurs when an actual situation turns out either better than anticipated or offers the potential to be better than anticipated. A. Performance issue. B. Performance deficiency. C. Performance opportunity. D. Decision situation. E. Management challenge.
C
GT
Fa
190.
Suppose a work process is changed with the intent of increasing output by 5%. After the first month of operation with the new work process, an output increase of 7% is reported. This is an example of a __________. A. Performance opportunity. B. Ethical situation. C. Performance deficiency. D. Work process strength. E. Planning strength. A GT Ap
191.
Problem solving is the process of __________. A. Choosing among alternative courses of action for dealing with a problem. B. Identifying a discrepancy between actual and desired states, and then taking appropriate corrective action. C. Approaching a problem in a rational and logical manner. D. Approaching a problem in an aggressive, corrective manner. E. Finding a performance deficiency. B KT Fa
192.
A(n) __________ is a choice among alternative possible courses of action. A. Problem. B. Performance deficiency. C. Performance opportunity. D. Decision. E. Action plan. D KT Fa
193.
Problem solving and decision making are dependent on quality __________ being available to the right people at the right time. A. Products. B. Services. C. Information. D. Control. E. Goals. C GT Ap
Chapter 7: Information and Decision Making
257
Types of Managerial Decisions 194.
__________ use solutions already available from past experience to solve __________. A. Programmed decisions structured problems. B. Nonprogrammed decisions structured problems. C. Programmed decisions unstructured problems. D. Nonprogrammed decisions unstructured problems. E. Crisis decisions structured problems. A KT Fa
195.
__________ are ones that are familiar, straightforward, and clear with respect to the information needs. A. Expected problems. B. Unstructured problems. C. Systematic decisions. D. Structured problems. E. Administrative decisions. D KT Fa
196.
A good example of a programmed decision is to __________. A. Reorder inventory automatically when it falls to a certain level. B. Place poor performing students on probation at a pre-established minimum grade average. C. Initiate an IRS audit when charitable deductions reported on the tax form exceed a certain limit. D. All of the above. E. None of the above. D GT Ap
197.
__________ are full of ambiguities and information deficiencies, and require ________ that craft novel solutions to meet the demands of a unique situation. A. Structured problems programmed decisions B. Structured problems nonprogrammed decisions C. Unstructured problems nonprogrammed decisions D. Unstructured problems . programmed decisions E. Structured problems crisis decisions. C KT Fa
198.
A(n) __________ is made when a new and unfamiliar problem arises and a novel solution is crafted to meet the demands of the unique situation at hand. A. Programmed decision. B. Nonprogrammed decision. C. Structured decision. D. Unstructured decision. E. Difficult decision. B KT Fa
258
Schermerhorn & Wright: Management
199.
Which of the following is NOT a good example of a nonprogrammed decision situation? A. Dealing with a massive equipment breakdown. B. Assessing environmental changes and adjusting corporate strategy accordingly. C. Evaluating different locations for setting up an overseas manufacturing facility. D. Dealing with an incident of workplace rage by a former employee. E. Consideration of an employee’s request for tuition reimbursement for a job-related course taken at the local community college. E GT Ap
200.
Most problem situations encountered by higher-level managers can be classified as __________. A. Nonroutine and unstructured. B. Classical and unexpected. C. Routine and administrative. D. Systematic and behavioural. E. Intuitive and functional. A GT Ap
201.
An unexpected problem that can lead to disaster if not resolved quickly and appropriately is known as __________. A. A structured problem. B. An unstructured problem. C. A nonprogrammed decision. D. A programmed decision. E. A crisis. E KT Fa
202.
Terrorism in the post-9/11 world, ethical scandals, outbreaks of workplace violence, information technology failures, and man-made environmental disasters are all examples of __________ problems that managers sometimes face. A. Routine. B. Creative. C. Crisis. D. Expected. E. Programmed. C GT Ap
203.
Which of the following statements does NOT accurately describe an aspect of how managers should deal with a crisis? A. The ability to handle a crisis may be the ultimate test of a manager’s problem-solving capabilities. B. Most managers react to crisis situations by readily involving others in solving the problem. C. Information and teamwork are especially crucial in solving a crisis situation. D. Proactive managers try to identify those situations that are likely to be susceptible to a crisis, and then develop basic contingency plans for crisis management. E. A crisis may be worsened if critical decisions are made with poor or inadequate information and from a limited perspective. B GT Ap
Chapter 7: Information and Decision Making
259
204.
__________ refers to the preparation of managers and others to deal with unexpected high-impact events that threaten an organization’s well-being. A. Fiscal responsibility. B. High context planning. C. Relief anticipation management. D. Impact avoidance goal setting. E. Crisis management. E KT Fa
205.
Which of the following is NOT an appropriate rule or guideline for crisis management? A. Take the time to understand what is going on with the crisis situation and the conditions under which the crisis must be resolved. B. Attack the crisis as quickly as possible to keep it as small as possible. C. Know when to back off and wait for a better opportunity to make progress with the crisis. D. Never “fight fire with fire” by starting another crisis to get people’s attention. E. Respect the danger of the unfamiliar and value the skeptic. D MN Ap
Decision Environments 206.
A __________ is the decision environment in which complete information is available about possible alternative courses of action and their outcomes. A. Probability environment. B. Uncertain environment. C. Risk environment. D. Certain environment. E. Normal environment. D KT Fa
207.
The ideal, but seldom achieved, condition for managerial problem solving is characterized by __________. A. Low risk, because managers seek little stimulation. B. High risk, because that is when high profits are possible. C. Uncertainty, because that offers the greatest chance for creativity. D. Normality, because that is the condition under which all the business school principles work. E. Certainty, because the manager simply has to locate the alternative offering the best solution. E GT Ap
208.
When decision makers lack complete information on action alternatives and their consequences but have some knowledge of the probabilities associated with the various outcomes, they are operating in an environment of __________. A. Certainty. B. Risk. C. Uncertainty. D. Subjectivity. E. Equifinality. B KT Fa
260
Schermerhorn & Wright: Management
209.
When managers are unable to even assign probabilities to the outcomes attached to various problem-solving alternatives, __________. A. A state of crisis exists. B. Uncertainty exists. C. Managers cannot rely on creativity. D. No solutions are possible. E. The planning system must rely on managers’ intuition. B KT Fa
210.
The most difficult decision environment for any manager to deal with is __________. A. Certainty. B. Risk. C. Uncertainty. D. Probability. E. Innovation. C GT Ap
Problem-Solving Styles 211.
Which of the following statements is/are accurate? A. Problem avoiders ignore information that would otherwise signal the presence of a problem. B. Problem seekers try to solve problems as they arise. C. Problem solvers actively process information and look for problems to solve or opportunities to explore. D. B and C. E. A, B, and C. A GT Fa
212.
Managers who ignore information that would otherwise signal the presence of a problem are __________. A. Problem deniers. B. Problem avoiders. C. Problem seekers. D. Problem passers. E. Problem delegaters. B GT Fa
213.
__________ are managers who try to solve problems but only when forced to by the situation. A. Problem avoiders. B. Active managers. C. Problem solvers. D. Problem seekers. E. Problem followers. C GT Fa
Chapter 7: Information and Decision Making
261
214.
Managers who actively process information and constantly look for problems to solve or opportunities to explore are best described as __________. A. Problem avoiders. B. Problem deniers. C. Problem solvers. D. Problem seekers. E. Problem leaders. D 181 GT Fa
215.
Suppose retail sales are steadily dropping. Executive A says it is probably a seasonal drop and should be ignored. Executive B suggests convening a task force to analyze the situation before a decision is made. Executive C says the answer to the drop in sales is to conduct market research and possibly develop a new image for the store or revamp the marketing campaign to make the store more appealing to the consumer. Which of the following statements accurately describes the three executives' different styles for dealing with problems? A. A is a problem avoider; B is problem seeker; C is a problem solver. B. A is a problem avoider; B is a problem avoider; C is problem solver. C. A is a problem avoider; B is a problem solver; C is a problem seeker. D. A is a problem avoider; B is a problem seeker; C is a problem seeker. E. None of the above is accurate. C GT Ap
216.
A person who approaches problems in a rational, step-by-step, and analytical fashion is engaging in __________. A. Risk analysis. B. Uncertainty analysis. C. Systematic thinking. D. Intuitive thinking. E. Strategic opportunism. C KT Fa
217.
Systematic thinkers are likely to __________. A. Make a plan for solving a problem but explore and abandon alternatives very quickly. B. Break a complex problem into smaller components, make a plan before taking action, and search for information to facilitate problem solving in a step-by-step fashion. C. Broadly and quickly evaluate the problem situation and the possible alternative course of action. D. Rely on nonverbal cues and hunches to solve problems. E. Deal with many aspects of a problem simultaneously, consider hunches, and jump quickly from one issue to another. B GT Fa
262
Schermerhorn & Wright: Management
218.
Someone who approaches problems in a flexible and spontaneous fashion is engaging in __________. A. Risk analysis. B. Uncertainty analysis. C. Systematic thinking. D. Intuitive thinking. E. Strategic opportunism. C KT Fa
219.
Intuitive thinkers are likely to do all of the following EXCEPT: A. Broadly and quickly evaluate a problem situation. B. Explore and abandon alternatives very quickly. C. Consider a number of alternatives and options simultaneously. D. Consider hunches and jump quickly from one issue to another. E. Solve problems in a step-by-step fashion. E GT Fa
220.
Managers should use __________ in high uncertainty situations where limited facts and few decision precedents exist. A. Systematic thinking. B. Intuitive thinking. C. The nominal group technique. D. The brainstorming technique. E. Decision tree analysis. B GT Ap
221.
__________ is the capacity to view many problems at once, in relationship to one another, and across long and short time horizons. A. Intuitive thinking. B. Expert thinking. C. Strategic thinking. D. Multidimensional thinking. E. Alternative thinking. D GT Fa
222.
__________ is the ability to remain focused on long-term objectives while being flexible in dealing with short-term problems and opportunities in a timely manner. A. Individual opportunism. B. System opportunism. C. Strategic opportunism. D. Competitive opportunism. E. Intuitive opportunism. C KT Fa
Chapter 7: Information and Decision Making
263
THE DECISION-MAKING PROCESS (STUDY QUESTION 4) 223.
The __________ involves a set of activities and events that begins with identification of a problem, includes making a decision, and ends with the evaluation of results. A. Control process. B. Organizing process. C. Leading process. D. Decision-making process. E. Negotiation process. D GT Fa
224.
Decision making is a __________ process that begins with __________ and ends with __________. A. Five-step … identifying and defining the problem … evaluating results. B. Five-step … identifying and defining the problem … implementing the solution. C. Four-step … identifying and defining the problem … implementing the solution. D. Six-step … generating alternative solutions … evaluating the results. E. Six-step … generating alternative solutions … implementing the solution. A GT Fa
Identify and Define the Problem 225.
The first step in the decision-making process involves __________. A. Generating alternative solutions and evaluating them. B. Selecting a preferred solution. C. Implementing the preferred solution. D. Gathering information, processing information, and deliberating. E. Evaluating the results. D KT Fa
226.
A key aspect of __________ involves clarifying goals by determining exactly what a decision should accomplish. A. Evaluation of solutions. B. Implementation of solutions. C. Problem identification and definition. D. Generation of solutions. E. Choosing a preferred solution. C GT Ap
227.
Which of the following is NOT one of the common mistakes in defining problems that are listed in the text? A. Focusing on symptoms instead of causes. B. Choosing the wrong problem to address. C. Defining the problem too broadly. D. Defining the problem too narrowly. E. Defining the problem too quickly. E GT Fa
264 228.
Schermerhorn & Wright: Management Stating a problem as the need to “build a better mousetrap” instead of the need to “get rid of mice” is an example of which type of error in identifying and defining a problem? A. Choosing the wrong problem to deal with. B. Focusing on symptoms instead of causes. C. Defining a problem too broadly or too narrowly. D. Selective perception. E. Doing the routine rather than the unexpected. C GT Ap
Generate and Evaluate Alternative Courses of Action 229.
__________ is the decision making stage at which people assemble the facts and information that will be helpful for problem solving. A. Identification and problem definition. B. Generation and evaluation of alternative courses of action. C. Selection of the preferred course of action and making the “ethics double check.” D. Implementation of the decision solution. E. Evaluation of results. B GT Fa
230.
All of the following activities appropriately occur in the second stage of the decision-making process EXCEPT: A. Assemble the facts and information that will be helpful for problem solving. B. Clarify exactly what is known and what needs to be known. C. Evaluate alternative courses of action by using stakeholder analysis. D. Evaluate alternative course of action by using cost-benefit analysis. E. Decide on a preferred solution. E GT Ap
231.
Comparing the costs of implementing an alternative with its expected benefits is called a(n) __________. A. Inventory of alternatives. B. Cost-benefit analysis. C. Decision matrix. D. Payoff table. E. Chart of probabilities. B KT Fa
232.
Typical criteria for evaluating alternative solutions include all of the following EXCEPT: A. Benefits and costs. B. Timeliness. C. Acceptability. D. Ease of implementation. E. Ethical soundness. D GT Fa
Chapter 7: Information and Decision Making 233.
265
Which of the following features will likely prevent the second step of the decision-making process from being effective? A. The pros and cons of possible alternative courses of action should be identified B. Bringing more people into the decision process adds information and perspective to problem solving. C. Decisions are only as good as the quality of alternatives that are considered. D. The search for alternatives should be completed quickly. E. Alternatives should meet ethical standards that are acceptable to the organization’s various stakeholders. D GT Fa
Decide on a Preferred Course of Action 234.
The third step of the decision-making process involves __________. A. Generating alternative solutions and evaluating them. B. Selecting a preferred course of action C. Implementing the solution. D. Gathering information, processing information, and deliberating. E. Evaluating the results. B GT Fa
235.
The __________ describes decision making with complete information, where the manager faces a clearly defined problem and knows all possible action alternatives as well as their consequences. A. Classical decision model. B. Administrative decision model. C. Behavioural decision model. D. Bounded rationality decision model. E. Political decision model. A KT Fa
236.
A manager who chooses the alternative giving the absolute best solution to a problem is making a(n) __________. A. Wise decision B. Optimizing decision C. Managerial decision D. Limiting decision E. Systematic decision. B KT Fa
237.
Which one of the following characteristics does NOT accurately describe classical decision theory? A. Managers make rational choices in a certain world. B. Managers have complete information. C. The model focuses on clearly defined problems. D. Knowledge exists regarding all possible alternatives and their consequences. E. The alternative chosen is the satisfactory one. E GT Fa
266
Schermerhorn & Wright: Management
238.
The limited information-processing capabilities of human beings produce __________ that prevents people from becoming fully informed and making perfectly rational decisions. A. Decision resistance. B. Intellectual fear. C. Cognitive limitations. D. Mental smallness. E. Information backlog. C GT Fa
239.
__________ indicates that decisions are rational only within the boundaries defined by the available information. A. Bounded rationality. B. Available rationality. C. Limited decision making. D. Classical decision making. E. Optimal rationality. A GT Fa
240.
The __________ describes decision making where people are assumed to act only in terms of what they perceive about a given situation. A. Executive decision model. B. Personal decision model. C. Biased decision model. D. Behavioural decision model. E. Descriptive decision model. D KT Fa
241.
When a manager chooses the first satisfactory alternative that comes to his or her attention during the decision-making process, ______________ occurs. A. Rationalization. B. Intuition. C. Satisficing. D. Optimization. E. Utilitarianism. C KT Fa
242.
Which one of the following statements provides an inaccurate description of the behavioural decision model? A. Limits exist regarding human information-processing capabilities. B. Managerial decisions are rational only within the boundaries defined by available information. C. Cognitive limitations make it difficult for managers to become fully informed. D. Even with cognitive limitations, competent managers can make perfectly rational decisions in highly ambiguous situations. E. Because of bounded rationality managers make satisficing decisions, especially in dealing with ambiguous problems in risky and uncertain conditions. D GT Fa
Chapter 7: Information and Decision Making
267
243.
The __________ is particularly useful in describing how people make decisions under conditions of risk and uncertainty. A. Classical decision model. B. Executive decision model. C. Behavioural decision model. D. Descriptive decision model. E. Political decision model. C GT Fa
244.
Which one of the following statements regarding decision-making models is correct? A. The classical decision model views managers as acting in a certain world. B. The classical decision model predicts that managers will make optimizing decisions. C. The behavioural decision model describes how managers act in situations of limited information and bounded rationality. D. The behavioural decision model predicts that managers will make satisficing decisions. E. All of the preceding statements are correct. E GT Fa
Implement the Decision Solution 245.
__________ is the decision-making stage at which problem-solving actions are initiated. A. Identification and problem definition. B. Solution generation and evaluation. C. Solution selection and “ethics double check.” D. Implementation. E. Evaluation. D GT Fa
246.
The __________ refers to the failure to adequately involve those persons whose support is necessary to ensure a decision’s implementation. A. Person perception error. B. Employee limitation error. C. Bounded rationality error. D. Satisficing error. E. Lack-of-participation error. E GT Fa
247.
The failure to adequately involve the people whose support is necessary to ensure a plan’s implementation is a major reason for difficulties in the __________ stage of decision making. A. Identification and problem definition. B. Solution generation and evaluation. C. Solution selection and “ethics double check.” D. Implementation. E. Evaluation. D GT Fa
268
Schermerhorn & Wright: Management
Evaluate Results 248.
The final stage of the decision-making process is __________. A. Identifying and defining problems. B. Generating and evaluating solutions. C. Selection a course of action. D. Implementing the solution. E. Evaluating results. E GT Fa
249.
Which of the following does NOT accurately describe the evaluation of results in the decisionmaking process? A. The decision-making process is not complete until results are evaluated B. The process must be renewed when results are not achieved. C. Only negative consequences of the chosen course of action need to be examined. D. Evaluation is made easier if the solution involves clear objectives with measurable targets and timetables. E. A modified or new solution may need to be generated if the original solution appears to be inadequate.
C
GT
Ap
ISSUES IN MANAGERIAL DECISION MAKING (STUDY QUESTION 5) Decision-Making Traps 250.
When people face complex environments and have limited information, they often use simplifying strategies for decision making. These simplifying strategies are known as __________. A. Uncertainty reduction. B. Heuristics. C. Optimizing. D. Rationalization. E. Work simplification. B KT Fa
251.
Which statement about heuristics is correct? A. The availability heuristic occurs when people use information from memory as a basis for assessing a current situation or event. B. The representativeness heuristic occurs when people assess the likelihood of something occurring based on its similarity to a stereotyped set of occurrences. C. The anchoring and adjustment heuristic involves making decisions based on alterations to a previously existing value or starting point. D. All of the above. E. None of the above. D GT Fa
Chapter 7: Information and Decision Making
269
252.
The __________ occurs when people use information “readily available” from memory as a basis for assessing a current situation or event. A. Representativeness heuristic. B. Availability heuristic. C. Escalation heuristic. D. Satisficing heuristic. E. Anchoring and adjustment heuristic. B GT Fa
253.
The __________ occurs when people assess the likelihood of something occurring based on its similarity to a stereotyped set of occurrences. A. Representativeness heuristic. B. Availability heuristic. C. Escalation heuristic. D. Satisficing heuristic. E. Anchoring and adjustment heuristic. A GT Fa
254.
The __________ involves making decisions based on alterations to a previously existing value or starting point. A. Representativeness heuristic. B. Availability heuristic. C. Escalation heuristic. D. Satisficing heuristic. E. Anchoring and adjustment heuristic. E GT Fa
255.
When a problem is evaluated and resolved in the positive or negative context in which it is perceived, a(n) __________ occurs. A. Lack of participation error. B. Escalation error. C. Framing error. D. Group decision error. E. Satisficing error. C KT Fa
256.
The tendency to increase effort and perhaps apply more resources to pursue a course of action that is not working is known as __________. A. Cost-benefit impact. B. Heuristics. C. Escalating commitment. D. Escalating cost impact. E. Satisficing. C KT Fa
270 257.
Schermerhorn & Wright: Management Tips on how to avoid the escalation of commitment trap in decision making include all of the following EXCEPT: A. Setting advance limits on involvement. B. Determining why the particular course of action is right. C. Guarding yourself against the tendency to quit too soon. D. Keeping in mind the costs involved. E. Not letting others influence your decision. C MN Fa
Individual vs. Group Decision Making 258.
__________ managers and team leaders use both individual and group decision making, employing the one that best fits the problem at hand. A. Incompetent. B. Poorly performing. C. Mediocre. D. Highly competent. E. None of the above is correct. D GT Fa
259.
In the context of individual and group decision making, the “right” decision method is the one that __________. A. Provides for a timely decision. B. Provides for a quality decision. C. Promotes the commitment of people who will be involved in implementing the decision. D. A and B. E. A, B, and C. E GT Fa
260.
The potential advantages of group decision making include all of the following EXCEPT: A. It makes greater amounts of information, knowledge, and expertise available to solve problems. B. It increases the number of action alternatives that are examined. C. It increases the likelihood of minority domination. D. It increases the understanding and acceptance of outcomes by members. E. It increases the commitment of team members to implementing the final plans. C GT Fa
261.
The potential disadvantages of group decision making include which of the following? A. Individual team members may feel pressure to conform to the wishes of others. B. Minority domination may occur. C. Decision making takes longer. D. All of the above are potential disadvantages of group decision making. E. None of the above is a potential disadvantage of group decision making. D GT Fa
Chapter 7: Information and Decision Making
271
Ethical Decision Making 262.
Any decision should meet the __________. A. Ethics double check. B. Bounded rationality limitations. C. Intellectual capital requirements. D. Group decision-making criteria. E. Creativity guidelines. A GT Fa
263.
Which of the following statement does NOT accurately describe an attribute or feature of ethical decision making? A. The “ethics double check” should address the question: “How would I feel if my family found out about this decision?” B. The “ethics double check” should address the question: “How would I feel if this decision were published in the local newspaper?”
C. The “ethics double check” should be done during step 3 of the decision-making process. D. Any discomfort in answering the “ethics double check” questions signifies that the decision may have ethical shortcomings. E. Only major managerial decisions need to meet the criteria of the “ethics double check.” E GT Fa 264.
Examining the __________ a proposed decision may result in both better decisions and the prevention of costly litigation. A. Implementation strategy for. B. Ethics of. C. Expected results of. D. Required resources for. E. Top management support for. B GT Fa
265.
Managers can proceed with confidence in implementing a decision solution when the decision meets all of the following criteria EXCEPT: A. Utility. B. Rights. C. Justice. D. Support. E. Caring. D GT Ap
266.
Which of the following questions does NOT address the ethical criteria for decision making that managers should use? A. Does the decision satisfy all constituents or stakeholders? B. Does the decision respect the rights and duties of everyone? C. Does the decision fulfill the organization’s strategic objectives? D. Is the decision consistent with the canons of justice? E. Is the decision consistent with my responsibilities to care? C GT Ap
272
Schermerhorn & Wright: Management
Knowledge Management and Organizational Learning 267.
__________ describes the processes through which organizations develop, organize, and share knowledge to achieve competitive advantage. A. Information management. B. Employee training and development. C. Knowledge management. D. Strategic positioning. E. Competitive analysis. C KT Fa
268.
An organization with effective knowledge management will __________. A. Energize the organization’s learning processes. B. Ensure that its intellectual assets are well managed and continually enhanced. C. Ensure that knowledge is used as a strategic and integrative force in the organization. D. All of the above. E. None of the above. D GT Ap
269.
A __________ is responsible for energizing learning processes and making sure that an organization’s portfolio of intellectual assets are well-managed and continually enhanced. A. Chief information officer. B. Chief knowledge officer. C. Chief operating officer. D. Chief learning officer. E. Chief executive officer. B GT Fa
270.
An organization that is able to continuously change and improve its performance based upon lessons of experience is known as __________. A. A total quality organization. B. An experienced organization. C. A learning organization. D. A continuous improvement organization. E. A developing organization. C KT Fa
271.
Which of the following accurately describes the nature of learning organizations? A. Learning organizations place high value on developing the ability to learn and then making that learning continuously available to all organizational members. B. Learning organizations can learn from their own experiences as well as the experiences of contractors, suppliers, partners, and customers. C. Learning organizations must be willing to seek out learning opportunities. D. All of the above. E. None of the above. D GT Ap
Chapter 7: Information and Decision Making
273
Essay Questions 272.
Define knowledge, knowledge workers, and intellectual capital, and discuss their importance in enabling businesses to compete effectively in the global economy. Suggested Answer: Knowledge and knowledge workers provide a decisive competitive factor in our global, information technology-driven economy. A knowledge worker is one whose value to the organization rests with intellect, not physical capabilities. Intellectual capital is the collective brainpower or shared knowledge of a workforce that can be used to create wealth. Knowledge and intellectual capital are irreplaceable organizational resources that grow from information. The productivity of knowledge and knowledge workers depends on computer competency (i.e., the ability to understand computers and use them to best advantage) and information competency (i.e., the ability to utilize technology to locate, retrieve, evaluate, organize, and analyze information for decision making).
273.
What impact is the increasing use of information technology (IT) having on organizations? Suggested Answer: The increasing use of information technology (IT) is dramatically affecting how organizations operate and how they interface with their environments. In terms of internal organizational aspects, IT has had the following effects: • • • • •
Individuals and teams can communicate more easily and can electronically share information. The organization can operate with fewer middle managers. Organizations can be flattened and operate with fewer levels of management. The speed of decision making can be increased. Coordination and control among decision makers can be increased.
In terms of relationships with their external environments, IT has helped organizations manage more effectively in the following ways: • • •
274.
IT helps with customer relationship management by providing information regarding customer needs, preferences, and satisfactions. IT helps organizations in all aspects of supply chain management. IT helps organizations to monitor outsourcing and other business contracts.
Explain how risk, certainty, and uncertainty influence the decisions that managers make. Suggested Answer: Certainty, risk, and uncertainty represent the three decision environments within which managerial decision making and problem solving take place. Certain environments offer sufficient information about possible action alternatives and their outcomes. While this environment is ideal for decision making, very few managerial decisions actually occur in certain environments. Risk environments lack complete information about action alternatives and their
274
Schermerhorn & Wright: Management consequences, but offer some estimates of probabilities associated with the potential outcomes of possible action alternatives. Uncertain environments occur when information is so poor that managers are unable even to assign probabilities to the likely outcomes of known alternatives. Risk environments and uncertain environments represent the vast majority of decision-making and problem-solving situations encountered by managers.
275.
Apply the steps in the decision-making process to a decision that you have made or are in the process of making. By applying this model to your own decision situation, what insights do you gain regarding how effective you are as a decision maker? Suggested Answer: Figure 7.5 from the text depicts a five-step decision-making process. These steps are described below. • •
• • •
Step 1: identify and define the problem. This is a stage of information gathering, information processing, and deliberation. Step 2: generate and evaluate alternative solutions. Several potential solutions are formulated at this stage. More information is gathered, data are analyzed, and the advantages and disadvantages associated with possible alternative courses of action are identified. Step 3: choose a preferred course of action and conduct the “ethics double-check.” In this step, a decision is made to pursue a particular course of action and the ethical implications of it are examined. Step 4: implement the action. In this step, appropriate action plans must be established and fully implemented. Step 5: evaluate results. Evaluation involves comparing accomplishments to objectives.
The students should evaluate their own decision situation in light of the activities that occur that each step of the above process.
276.
How can managers ensure they are making ethical decisions? Suggested Answer: Any decision that managers make should be ethical. Any decision that managers make should meet the “ethics double check” of Step 3 of the decision-making process. The “ethics double check” should address two spotlight questions: “How would I feel if my family found out about this decision?” and “How would I feel if this decision were published in the local newspaper?” If a manager experiences any discomfort in answering these questions honestly, the decision probably has ethical shortcomings. In addition to the two spotlight questions, managers should ask and answer the following questions: • • • •
Does the decision satisfy all constituents or stakeholders? Does the decision respect the rights and duties of everyone? Is the decision consistent with the canons of justice? Is the decision consistent with my responsibilities to care?
Chapter 7: Information and Decision Making
275
Managers can proceed with confidence when they can answer affirmatively to these questions. Clearly, examining the ethics of a proposed decision may result in both better decisions and the prevention of costly litigation. 277. Provide examples of the following types of decisions: a) Programmed decisions b) Nonprogrammed decisions c) Crisis Suggested Answer: a) Programmed decisions • Absent employee • late employee • product return • angry customer • fire drill • viod the cash resgister b) Nonprogrammed decisions • customer fight • drunk customer • employee becoming seriously ill at work • customer injuring themselves c) Crisis • bomb threat • wildcat strike • dangerous weather
Chapter 8:
PLANNING AND CONTROLLING True/False Questions CHAPTER INTRODUCTION 1.
Even the best plans will have to be changed at some point due to an uncertain future; consequently, managers must be flexible in response to new circumstances. T GT Fa
2.
Managers must have the discipline to maintain control when performance pressures are unrelenting. T GT Fa
HOW AND WHY MANAGERS PLAN (SYUDY QUESTION 1) 3.
Setting objectives and determining what should be done to accomplish them is the essence of the management function of planning. T KT Fa
4.
Planning is the process of deciding exactly what one wants to accomplish and how to do it. T KT Fa
Importance of Planning 5.
Planning creates a solid platform for further managerial efforts at allocating and arranging resources to accomplish essential tasks, guiding the efforts of human resources to ensure high levels of task accomplishment, monitoring task accomplishment, and taking necessary corrective action. T GT Fa
6.
Controlling is the management function that establishes the platform for further managerial efforts. F GT Fa
7.
Planning is central to the management process and important for staying ahead of the competition, but it does little to help an organization become better at what it does or to be action oriented. F GT Fa
277
278 8.
Schermerhorn & Wright: Management Planning eliminates the need for effective leadership. F GT Fa
The Planning Process 9.
In the planning process, objectives refer to the specific results or desired outcomes that one intends to achieve. T KT Fa
10.
A control system is a statement of action steps to be taken in order to accomplish objectives. F KT Fa
11.
Planning is a five-step process that includes defining objectives, determining current status relative to objectives, developing premises regarding future conditions, analyzing action alternatives and choosing among them, and implementing the plan and evaluating results. T GT Fa
12.
The planning process is a systematic way of setting performance objectives and deciding how to best achieve them. T GT Fa
13.
The planning process is a systematic way of ensuring that performance objectives have been attained. F GT Fa
Benefits of Planning 14.
External pressures on planning include increasing uncertainty in the global economy; the cost of investments in land, labour, and capital; increasing complexity of technology; and ethical expectations. T GT Fa
15.
Internal pressures on planning include alternative work arrangements and the quest for operating efficiencies, but not greater diversity in the workplace or new structures and technologies. F GT Fa
16.
Effective planning improves focus and flexibility, provides an action orientation, helps to improve coordination, and facilitates better control and time management. T GT Fa
17.
An organization with focus knows the needs of its customers and knows how to serve them well; an individual with focus knows where he or she wants to go in a career or situation and is able to retain that objective even in difficult circumstances. T GT Fa
18.
An organization with flexibility is willing and able to change and adapt, and operates with an orientation toward the future. T GT Fa
Chapter 8: Planning and Controlling
279
19.
An individual with flexibility adjusts career plans to fit new and developing opportunities. T GT Fa
20.
Planning provides action orientations for people and organizations that are results oriented, priority oriented, advantage oriented, and change oriented. T GT Fa
21.
Planning helps managers and organizations to stay ahead of the competition by creating a performance-oriented sense of direction, making sure the most important things get attention first, ensuring that all resources are used to best advantage, and anticipating problems and opportunities so they can be dealt with in the best way. T GT Fa
22.
Good planning creates a hierarchy of authority in which lower-level objectives lead to the accomplishment of higher-level objectives. F KT Fa
23.
In the means-ends chain, higher-level objectives are ends that are directly tied to lower-level objectives as the means for their accomplishment. T GT Fa
24.
Effective time management involves choices about the allocation of time to the most important priorities. T GT Fa
25.
Planning facilitates control by defining the objectives and using specialization to motivate workers. F GT Fa
26.
Without controlling, planning lacks a framework for measuring how well things are going and what could be done to improve things. F GT Ap
27.
Without planning, controlling lacks the follow-through needed to ensure that things work as planned. F GT Ap
TYPES OF PLANS USED BY MANAGERS (STUDY QUESTION 2) Short-Range and Long-Range Plans 28.
Short-range plans cover one year or less into the future. T GT Fa
29.
Intermediate-range plans cover a time frame of one to five years into the future. F GT Fa
280
Schermerhorn & Wright: Management
30.
Long-range plans cover a time frame at least six years into the future. F GT Fa
31.
Top-level managers spend more time with long-range planning. T GT Fa
32.
Elliot Jacques suggests that all managers, regardless of their levels, will use the same time horizon to plan their work activities. F GT Fa
Strategic and Operational Plans 33.
Strategic plans set broad, comprehensive, and longer-term action directions for the entire organization. T KT Fa
34.
Operational plans define what needs to be done in specific functions or work units in order to implement strategic plans and achieve strategic objectives. T KT Fa
35.
Operational plans form the foundation for strategic plans, whereas strategic plans specify the activities and resources that are needed to carry out the operational plans. F GT Fa
36.
Typical strategic plans in a business would include dealing with the methods and technology needed by people in their work and dealing with money required to support various operations. Typical operational plans in a business would include dealing with requirements of selling and distributing goods or services and dealing with recruitment, selection, and placement of people into jobs. F GT Fa
37.
Production plans, financial plans, facilities plans, marketing plans, and human resource plans are all examples of strategic plans. F GT Fa
Policies and Procedures 38.
Policies and procedures are single-use plans for meeting the needs of a well-defined situation in a timely manner. F GT Fa
39.
Policies communicate broad guidelines for making decisions and taking action in specific circumstances. T KT Fa
40.
Rules or procedures describe exactly what actions are to be taken in specific situations. T
KT
Fa
Chapter 8: Planning and Controlling
281
41.
Standard operating procedures are rules that are often found in employee manuals. T GT Ap
42.
Procedures present a plan of action for specific situations whereas policies are broad guidelines. T GT Fa
Budgets and Projects 43.
A zero-based budget and a project schedule are examples of standing plans that are designed to cover recurring situations. F GT Ap
44.
A monthly operating budget is an example of a single-use plan that serves the needs and objectives of a well-defined situation in a timely manner. T GT Ap
45.
Budgets are single-use plans that commit resources to activities, projects, or programs. T KT Fa
46.
A fixed budget is defined as one that allocates a fixed amount of resources for a specific purpose. T GT Fa
47.
A zero-based budget allows the allocation of resources to vary in proportion with various levels of activity. F GT Fa
48.
When a project or activity is budgeted in each new budget period as if it were brand new, a flexible budgeting approach is being used. F KT Fa
49.
Projects refer to one-time activities that have clear beginning and end points. T KT Fa
50.
Project management involves making sure that the activities required to complete a project are done on time, within budget, and to fulfill objectives. T KT Fa
51.
Fixed budgets define specific task objectives, link activities to be accomplished with due dates, and identify the amounts and timing of resource requirements. F GT Fa
PLANNING TOOLS AND TECHNIQUES (STUDY QUESTION 3) Forecasting 52.
Fortune telling is the management process of predicting what will happen in the future. F KT Fa
282
Schermerhorn & Wright: Management
53.
Using the opinions of persons with special expertise to make predictions about the future is called qualitative forecasting. T GT Fa
54.
Using mathematical and statistical analyses of historical data and surveys to predict future events is called quantitative forecasting. T GT Fa
55.
Quantitative forecasting techniques use expert opinions to predict the future, whereas qualitative forecasting uses mathematical analyses to predict future events. F GT Fa
56.
Forecasting is a process of making quantitative or qualitative predictions about what will happen in the future; yet in the final analysis, forecasting is subject to error because it always relies on human judgment and interpretation. T GT Ap
Contingency Planning 57.
Contingency planning identifies alternative courses of action that can be implemented to meet the needs of changing circumstances. T KT Fa
58.
Contingency planning occurs when planners decide the future will be identical to the past. F GT Ap
59.
Contingency planning anticipates events that may occur in the future. T GT Ap
60.
Contingency planning specifies different courses of action under different conditions. T GT Ap
61.
Contingency planning focuses on early identification of possible shifts in future events. T GT Ap
62.
Contingency planning contains trigger points that indicate when preselected alternative plans should be activated. T GT Ap
Scenario Planning 63.
Scenario planning is a long-term version of contingency planning. T GT Fa
64.
Scenario planning involves identifying alternative future states of affairs that may occur and then developing plans to deal with each case should it actually occur. T KT Fa
Chapter 8: Planning and Controlling 65.
283
Scenario planning helps Royal Dutch/Shell make major adjustments in strategies and operations and to be better prepared than competitors for future shocks. T GT Ap
Benchmarking 66.
Benchmarking is used to gain perspective on current organizational performance through the use of external comparisons. T KT Fa
67.
The purpose of contingency planning is to find out what other people and organizations are doing very well, and then planning how to incorporate these ideas into one’s own operations. F GT Fa
68.
Best practices refer to those things that are done by both competitors and noncompetitors that enable them to achieve superior performance. T GT Fa
Use of Staff Planners 69.
Staff planners are individuals who lead and coordinate the planning function for an organization as a whole or for one of its major components. T GT Fa
70.
An important risk associated with the use of staff planners is the communication gap that can develop between staff planners and line managers. T GT Fa
Participation and Involvement 71.
Participatory planning requires that the planning process include people who will be affected by the resulting plans and/or will be asked to help implement them. T KT Fa
72.
The use of participatory planning can increase creativity in planning, the commitment of people for planning, and the information available for planning. T GT Fa
73.
The use of participatory planning can increase conflict over scarce resources and consequently decrease acceptance of chosen alternatives. F GT Fa
74.
Only a few key people should be involved in developing plans in order to keep the plans simple and to facilitate implementation. F GT Fa
75.
While participation in the planning process can increase the amount of time spent in planning, it nonetheless can enhance results by improving implementation. T GT Ap
284
Schermerhorn & Wright: Management
THE CONTROL PROCESS (STUDY QUESTION 4) 76.
The word “control” must be used carefully because the word has a negative connotation. T GT Fa
77.
Control plays a positive and necessary role in the management process. T GT Fa
The Importance of Controlling 78.
Controlling is a process of measuring performance and taking action to ensure desired results. T KT Fa
79.
The purpose of controlling is to make sure plans are achieved and that actual performance meets or surpasses objectives. T GT Fa
80.
Controlling makes sure that individual and group performance is consistent with plans and that employees comply with organizational policies and procedures. T GT Ap
81.
Controlling ensures that the right things happen, in the right way, at the right time. T
82.
GT
Ap
An after-action review is a structured review of lessons learned and results accomplished on a completed project. T KT Fa
Steps in the Control Process 83.
Controlling is a four-step process that includes establishing objectives, measuring actual performance, comparing results with objectives and standards, and taking corrective action as needed. T GT Fa
84.
Effective planning by managers helps establish performance objectives and standards. T GT Fa
85.
Output standards measure effort in terms of the amount work expended in task performance. F KT Fa
86.
Input standards measure performance results in terms of quantity, quality, cost, or time of accomplished work. F KT Fa
87.
In the control process, measurement must be accurate enough to identify significant differences between what is really taking place and what was originally planned. T GT Ap
Chapter 8: Planning and Controlling
285
88.
The control equation focuses on determining the need for action and reflects the difference between desired performance and actual performance. T GT Fa
89.
Desired performance and actual performance can be compared from historical, relative, or engineering perspectives. T GT Fa
90.
In utilizing a historical approach for comparing desired and actual performance, a manager will use past performance as a benchmark. T GT Fa
91.
In utilizing a relative approach to compare desired and actual performance, a manager will use the organization’s objectives to set the standard F GT Fa
92.
In utilizing an engineering approach to compare desired and actual performance, a manager will use performance achievements of other people, work units, or organizations to set the standard. F GT Fa
93.
Under management by exception, corrective action is reserved for situations showing the greatest need for action. T KT Fa
94.
The practice of giving priority attention to situations showing the greatest need for action is called management by opportunity. F KT Fa
95.
Management by exception is the technique of focusing managerial attention on situations where the difference between actual and desired performance is greatest. T KT Fa
96.
When the control equation identifies a situation in which actual performance is less than desired performance, the situation is called an opportunity situation. F GT Fa
97.
A management exception known as the problem situation occurs when actual performance is above the standard. F GT Fa
Types of Controls 98.
Feedforward, concurrent, and feedback controls are relevant to different phases of the organization’s input-throughput-output cycle. T GT Fa
286
Schermerhorn & Wright: Management
99.
Feedforward controls, also known as preliminary controls, are intended to ensure that objectives are clear, that proper directions are established, and that the right resources are available to accomplish objectives. T KT Fa
100.
The central question of feedforward control is: “What can be done to improve things right now?” F GT Ap
101.
Concurrent controls, or steering controls, focus on the end results of an activity rather than the inputs or the activities. F KT Fa
102.
The central question of concurrent control is: “What needs to be done before we begin?” F 211 GT Ap
103.
Feedback controls, or postaction controls, monitor ongoing operations and activities to make sure that things are being done according to plan. F KT Fa
104.
The central question of feedback control is: “Now that we are finished, how did we do?” T GT Ap
Internal and External Control 105.
Internal control occurs when motivated individuals and groups exercise self-discipline in fulfilling job requirements. T KT Fa
106.
External control occurs when managers use personal supervision or formal administrative systems. T KT Fa
107.
Effective control typically involves some combination of internal and external control. T
GT
Ap
108.
Organizations increasingly rely on external control because of the emphasis on participation, empowerment, and involvement in the new workplace. F GT Ap
109.
The potential for self-control is increased when people have a clear sense of organizational mission, know their performance goals, have the necessary resources to do their jobs well, treat each other with respect and consideration, and work in a participative organizational culture. T GT Ap
Chapter 8: Planning and Controlling
287
ORGANIZATIONAL CONTROL (STUDY QUESTION 5) MBO: Integrated Planning and Controlling 110.
Management by objectives (MBO) is a structured process of regular communication in which a supervisor/team leader and subordinates/team members jointly set performance objectives and review results accomplished. T KT Fa
111.
In management by objectives (MBO), the supervisor/team leader and subordinates/team members formally agree on: performance objectives for a specific time period, plans for accomplishing the performance objectives, standards for measuring the accomplishment of objectives, and procedures for reviewing performance results. T GT Fa
112.
In a management by objectives approach, the supervisor/team leader and subordinates/team members jointly plan, act, and control during all phases of the process. F GT Fa
113.
Improvement objectives, personal development objectives, and maintenance objectives can be specified in an MBO contract. T GT Fa
114.
A good performance objective should be challenging and specific but it need not be measurable or time defined. E GT Ap
115.
On those jobs where performance is difficult to quantify, performance objectives can be stated as verifiable work activities. T GT Fa
116.
In using MBO, managers should avoid having subordinates engage in self-appraisal of their performance results in light of their performance objectives. F GT Ap
117.
Advantages of MBO include focusing the work efforts of subordinates/team members on the most important tasks and objectives, and the work efforts of the supervisor/team leader on areas of support that can help subordinates/team members meet agreed-upon objectives. T GT Ap
118.
Management by objectives (MBO) provides for subordinate participation in setting performance objectives and standards of measurement, thereby facilitating self-control. T GT Ap
Employee Discipline Systems 119.
Discipline is the act of influencing behaviour through reprimand. T KT Fa
288
Schermerhorn & Wright: Management
120.
When discipline is handled in a fair, consistent, and systematic way, it is a useful form of managerial control. T GT Fa
121.
The “hot stove rules” refer to a set of Occupational Safety and Health Administration (OSHA) rules for handling hot materials. F MN Fa
122.
A hot stove burns and people should not touch a hot stove in order to avoid harm. Based on this notion, the “hot stove rules” analogy of employee discipline indicates that a reprimand should be immediate, consistently applied, and support realistic rules. T MN Fa
123.
Progressive discipline ties reprimands to the severity and frequency of the employee’s behavioural infractions. T KT Fa
124.
In progressive discipline, the goal always is to achieve compliance with organizational expectations through the most socially acceptable reprimand possible. F GT Fa
Information and Financial Controls 125.
In exercising financial control over organizations, managers should consider liquidity, leverage, asset management, and profitability. T GT Fa
126.
Liquidity ratios use information about current assets and current liabilities. T MN Ap
127.
Asset management ratios focus on the relationship between profits and either average inventory or total assets. F MN Ap
128.
Inventory turnover is one method for determining the company’s financial liquidity. F MN Ap
129.
Leverage ratios are helpful in assessing how well assets are employed in generating sales. F MN Ap
Break-Even Analysis 130.
The calculation of the point at which sales revenues are sufficient to cover costs is known as break-even analysis. T KT Fa
131.
The break-even point occurs where losses end and the firm begins to make a profit. T GT Fa
Chapter 8: Planning and Controlling
289
132.
The break-even point is calculated by dividing total fixed costs by price minus variable costs. T GT Fa
133.
Break-even analysis is used for experimenting with different “what-if” scenarios but not for evaluating a proposed new product or program or for examining the impact of cost control measures F GT Ap
Operations Management and Control 134.
Thrifty organizations try to control the costs of what they purchase by leveraging their buying power, committing to a small number of suppliers, and developing supplier-purchaser partnerships. T GT Fa
135.
The basic goal of inventory control is to make sure that inventory is just the right size to meet performance needs, thus minimizing the cost. T GT Fa
136.
Ordering a fixed number of items every time an inventory level falls to a predetermined point is called the economic order quantity. T KT Fa
137.
Economic order quantity is an approach to inventory control that ensures materials arrive at a facility or work station just in time to be used. F KT Fa
138.
Just-in-time scheduling is a quantitative method of inventory control that involves ordering a fixed number of items every time an inventory level falls to a predetermined point. F KT Fa
139.
Scheduling materials to arrive on a timely basis at a workstation or facility in order to reduce costs and improve workflow is known as timely inventory control (TIC). F KT Fa
140.
In the context of control systems, management process control involves checking processes, materials, products, and services to ensure that they meet high standards. F KT Fa
141.
Statistical quality control usually involves taking samples of work, measuring quality in the samples, and determining the acceptability of results. T GT Fa
142.
Statistical quality control can be used to improve operations quality by reducing the number of defective parts that are produced. T GT Ap
290
Schermerhorn & Wright: Management
Multiple Choice Questions CHAPTER INTRODUCTION 143.
Which of the following statements about planning and controlling is/are accurate? A. Even the best plans will have to be changed at some point due to an uncertain future. B. Managers must be flexible in response to new circumstances. C. Managers must have the discipline to maintain control when performance pressures are unrelenting. D. B and C. E. A, B, and C. E GT Fa
HOW AND WHY MANAGERS PLAN (STUDY QUESTION 1) 144.
Setting objectives and determining what should be done to accomplish them is the essence of the management function of __________. A. Productivity improvement. B. Controlling. C. Leading. D. Organizing. E. Planning. E KT Fa
145.
__________ is the process of deciding exactly what one wants to accomplish and how to do it. A. Sales forecasting B. Planning. C. Needs analysis. D. Demand estimation. E. Program development. B KT Fa
Importance of Planning 146.
__________ is the management function that establishes the platform for further managerial efforts. A. Leading. B. Planning. C. Organizing. D. Controlling. E. Optimization. B GT Fa
Chapter 8: Planning and Controlling 147.
291
Planning is important for all of the following reasons EXCEPT: A. Planning is central to the management process. B. Planning is important for staying ahead of the competition. C. Planning helps an organization become better at what it does. D. Planning helps an organization to be action oriented. E. Planning eliminates the need for effective leadership. E GT Fa
The Planning Process 148.
In the planning process, __________ refer to the specific results or desired outcomes that one intends to achieve. A. Guidelines. B. Objectives. C. End states. D. Paybacks. E. Alternatives. B KT Fa
149.
__________ is a statement of action steps to be taken in order to accomplish objectives. A. A plan. B. A solution. C. A guideline. D. An alternative. E. A goal. A KT Fa
150.
Which one of the following alternatives lists the planning steps in proper order? A. Define objectives, determine current standing relative to objectives, evaluate current accomplishments, analyze and choose among possible action alternatives, and implement the plan and evaluate results. B. Define objectives, develop premises regarding future conditions, determine current standing relative to objectives, analyze and choose among possible action alternatives, and implement the plan and evaluate results. C. Define objectives, determine current standing relative to objectives, develop premises regarding future conditions, analyze and choose among possible action alternatives, and implement the plan and evaluate results. D. Determine current standing relative to objectives, define objectives, develop premises regarding future conditions, analyze and choose among possible action alternatives, and implement the plan and evaluate results. E. Develop premises regarding future conditions, define objectives, determine current standing relative to objectives, analyze and choose among possible action alternatives, and implement the plan and evaluate results. C GT Fa
292 151.
Schermerhorn & Wright: Management The planning process is a systematic way of approaching which of the following tasks? A. Setting performance objectives. B. Deciding how to best achieve performance objectives. C. Ensuring that performance objectives have been attained. D. A and B. E. A, B, and C. D GT Fa
Benefits of Planning 152.
External pressures on planning include all of the following EXCEPT: A. Increasing uncertainty in the global economy. B. The cost of investments in land, labour, and capital. C. Increasing complexity of technology. D. The quest for operating efficiencies. E. Ethical expectations. D GT Fa
153.
Internal pressures on planning include all of the following EXCEPT: A. Greater diversity in the workplace. B. The cost of investments in land, labour, and capital. C. New structures and technologies. D. The quest for operating efficiencies. E. Alternative work arrangements. B GT Fa
154.
The benefits of planning include all of the following EXCEPT: A. Planning improves focus and flexibility. B. Planning improves action orientation. C. Planning improves stress management. D. Planning improves time management. E. Planning improves control. C GT Fa
155.
Which of the following statements accurately describe the benefits of planning? A. Planning improves action orientation. B. Planning improves coordination. C. Planning improves time management. D. A and B. E. A, B, and C. E GT Fa
Chapter 8: Planning and Controlling
293
156.
Which of the following statements about focus is/are correct? A. An organization with focus knows what it does best. B. An organization with focus knows the needs of its customers and knows how to serve them well. C. An individual with focus knows where he or she wants to go in a career or situation and is able to retain that objective even in difficult circumstances. D. All of the above. E. None of the above. D GT Fa
157.
Which of the following statements about flexibility is/are correct? A. An organization with flexibility is willing and able to change and adapt. B. An organization with flexibility operates with an orientation toward the future. C. An individual with flexibility adjusts career plans to fit new and developing opportunities. D. All of the above. E. None of the above. D GT Fa
158.
Planning provides several action orientations for people and organizations. Which one of the following is NOT an action orientation of planning? A. Planning is results oriented. B. Planning is priority oriented. C. Planning is advantage oriented. D. Planning is management oriented. E. Planning is change oriented. D GT Fa
159.
Planning helps managers and organizations to stay ahead of the competition by doing all of the following EXCEPT: A. Creating a performance-oriented sense of direction. B. Making sure the most important things get attention first. C. Ensuring that all resources are used to best advantage. D. Ensuring that all passive activity is eliminated. E. Anticipating problems and opportunities so they can be dealt with in the best way. D GT Fa
160.
Good planning creates a __________ in which lower-level objectives lead to the accomplishment of higher-level objectives. A. A hierarchy of authority. B. Performance targets. C. A means-ends chain. D. Interlinked hierarchies of responsibility E. Activity schedules. D KT Fa
294
Schermerhorn & Wright: Management
161.
A means-ends chain is also known as a __________. A. Hierarchy of authority. B. Hierarchy of objectives. C. Control system. D. Responsibility structure. E. Zero-based budget. B GT Fa
162.
In the means-ends chain, __________ objectives are ends that are directly tied to __________ objectives as the means for their accomplishment. A. Lower-level lower-level. B. Lower-level higher-level. C. Moderate-level moderate-level D. Higher-level lower-level. E. Higher-level higher-level. D GT Fa
163.
Effective __________ involves choices about the allocation of time to the most important priorities. A. Inventory management. B. Cash management. C. Time management. D. Project budgeting. E. Strategic management. C GT Fa
164.
Planning facilitates control by defining the objectives and __________. A. Identifying the specific courses of action to be taken. B. Creating specialization among the workers. C. Improving organizational structures. D. Developing the human resources. E. Motivating the workers. A GT Fa
165.
Without __________, __________ lacks a framework for measuring how well things are going and what could be done to improve things. A. Problem solving ….organizing. B. Planning … controlling. C. Planning … leading. D. Controlling … goal setting. E. Planning …. decision making. B GT Ap
Chapter 8: Planning and Controlling 166.
295
Without __________, __________ lacks the follow-through needed to ensure that things work as planned. A. Controlling … organizing. B. Planning … controlling. C. Controlling … leading. D. Planning … problem solving E. Controlling. … planning. E GT Ap
TYPES OF PLANS USED BY MANAGERS (STUDY QUESTION 2) Short-Range and Long-Range Plans 167.
Which of the following statements accurately describe planning time horizons? A. Short-range plans cover one year or less into the future. B. Intermediate-range plans cover a time frame of one to two years into the future. C. Long-range plans cover a time frame of three or more years into the future. D. All of the above. E. None of the above. D GT Fa
168.
Which level of management spends more time with long-range planning? A. Lower-level managers. B. Middle-level managers. C. Lower-level and middle-level managers. D. Top-level managers. E. All levels of management. D GT Fa
169.
Which of the following are implications of research conducted by Elliot Jacques? A. People vary in their capabilities to think out, organize, and work through events of different time horizons. B. Most people work comfortably with only three-month time spans; smaller groups of people work well with a one-year time frame; and only one person in several million can handle a 20-year time frame. C. Managers working at different levels in the organization must plan over varying time horizons. D. All of the above. E. None of the above. D GT Fa
170.
__________ keeps making long-range planning shorter and shorter. A. International time. B. Strategic time. C. Internet time. D. Eastern Standard Time. E. Daylight Savings Time. C GT Fa
296
Schermerhorn & Wright: Management
Strategic and Operational Plans 171.
__________ plans set broad, comprehensive, and longer-term action directions for the entire organization. A. Normal. B. Single-use. C. Strategic. D. Tactical. E. Operational. C KT Fa
172.
Plans that define what needs to be done in specific functions or work units in order to implement strategic plans and achieve strategic objectives are called __________. A. Business plans. B. Implementing plans. C. Company plans. D. Tactical plans. E. Operational plans. E KT Fa
173.
How are strategic plans and operational plans related? A. Strategic plans and operational plans are unrelated. B. Strategic plans define what needs to be done to implement operational plans. C. Strategic plans are developed to address long-term organizational objectives; operational plans implement strategic plans. D. Operational plans are developed to meet long-term organizational objectives; strategic plans implement operational plans. E. Strategic plans set operational objectives; operational plans carry out those objectives. C GT Ap
174.
Typical operational plans in a business would include all of the following EXCEPT: A. Dealing with methods and technology needed by people in their work. B. Dealing with money required to support various operations. C. Dealing with requirements of selling and distributing goods or services. D. Dealing with company growth through mergers and acquisitions. E. Dealing with recruitment, selection, and placement of people into jobs. D GT Fa
175.
Production plans, financial plans, facilities plans, marketing plans, and human resource plans are all examples of __________ plans. A. Strategic. B. Operational. C. Contingency. D. Standing-use. E. Flexible. B GT Fa
Chapter 8: Planning and Controlling
297
Policies and Procedures 176.
Policies and procedures that are used repeatedly are called __________. A. Single-use plans. B. Standing plans. C. Strategic plans. D. Scheduling plans. E. Individual plans. B GT Fa
177.
__________ communicate broad guidelines for making decisions and taking action in specific circumstances. A. Rules. B. Procedures. C. Policies. D. A and B. E. A, B, and C. C KT Fa
178.
__________ or __________ describe exactly what actions are to be taken in specific situations. A. Rules procedures. B. Rules goals. C. Procedures policies. D. Projects project management. E. Objectives strategies. A KT Fa
179.
__________ are often found in employee manuals as standard operating procedures. A. Goals. B. Rules. C. Budgets. D. A and B. E. A and C. B GT Ap
180.
Which of the following statements best distinguishes between procedures and policies? A. Procedures help obtain organizational objectives; policies do not. B. Procedures present a plan of action for specific situations; policies are broad guidelines. C. A procedure is a single-use plan; a policy is a standing plan. D. Procedures guide ethics; policies guide fair employment. E. A procedure is a standing-use plan; a policy is a single-use plan. B GT Fa
298 181.
Schermerhorn & Wright: Management When a university issues a statement that it “… will not tolerate sexual harassment in relation to the evaluation of employee or student performance … ,” a __________ plan in the form of an organizational __________ is being communicated. A. Single-use … procedure. B. Standing-use … rule. C. Standing … procedure. D. Single-use … policy. E. Standing … policy. E GT Ap
Budgets and Projects 182.
A__________ is an example of a single-use plan that serves the needs and objectives of a welldefined situation in a timely manner. A. Monthly operating budget. B. Sexual harassment policy. C. Standard operating procedure. D. Marketing strategy. E. Performance appraisal process. A GT Ap
183.
__________ are single-use plans that commit resources to activities, projects, or programs. A. Policies. B. Rules. C. Budgets. D. Procedures. E. Strategies. C KT Fa
184.
Which one of the following statements does NOT accurately describe budgets? A. Budgets are standing plans. B. Budgets commit resources to activities, projects, or programs. C. Budgets can be fixed or flexible. D. Budgets are single-use plans. E. Budgets allocate scarce resources among competing uses. A GT Fa
185.
A __________ budget is defined as one that allocates a fixed amount of resources for a specific purpose. A. Fixed. B. Flexible. C. Zero-based. D. Contingency. E. Comprehensive. A GT Fa
Chapter 8: Planning and Controlling
299
186.
A(n) __________ budget allows the allocation of resources to vary in proportion with various levels of activity. A. Master. B. Strategic. C. Operational. D. Flexible. E. Zero-based. D GT Fa
187.
In a chain of discount department stores, personnel needs are estimated in three different ways: (a) for a high demand season, (b) for a moderate demand season, and (c) for a slack season. By taking these three activity levels into account, managers are developing a __________. A. Fixed budget. B. Flexible budget. C. Zero-based budget. D. Standing-use plan. E. Policy. B GT Ap
188.
When a project or activity is budgeted in each new budget period as if it were brand new, a(n) __________ budgeting approach is being used. A. Fixed. B. Flexible. C. Zero-based. D. Contingency. E. Operational. C KT Fa
189.
__________ refer to one-time activities that have clear beginning and end points. A. Procedures. B. Rules. C. Projects. D. Budgets. E. Goals. C KT Fa
190.
__________involves making sure that the activities required to complete a project are done on time, within budget, and fulfill objectives. A. Strategic goal setting. B. Management by objectives. C. Project management. D. Zero-based budgeting. E. Self-control. C KT Fa
300 191.
Schermerhorn & Wright: Management __________ define specific task objectives, link activities to be accomplished with due dates, and identify the amounts and timing of resource requirements. A. Fixed budgets. B. Flexible budgets. C. Control limits. D. Project schedules. E. Inventory order schedules. D GT Fa
PLANNING TOOLS AND TECHNIQUES (STUDY QUESTION 3) Forecasting 192.
__________ is the process of predicting what will happen in the future. A. Contingency planning. B. Visioning. C. Identifying objectives. D. Foretelling. E. Forecasting. E KT Fa
193.
Using the opinions of persons with special expertise to make predictions about the future is called __________. A. Quantitative forecasting. B. Guesswork. C. Qualitative forecasting. D. Contingency planning. E. Expert planning. C GT Fa
194.
Using mathematical and statistical analyses of historical data and surveys to predict future events is called __________. A. Quantitative forecasting. B. Guesswork. C. Qualitative forecasting. D. Contingency planning. E. Expert planning. A GT Fa
195.
Which of the following statements about forecasting is NOT true? A. Forecasting always relies on human judgment. B. Highly sophisticated quantitative approaches to forecasting still require interpretation. C. Forecasts are always subject to error and should be treated with caution. D. Forecasting is an effective and efficient substitute for planning. E. Forecasting is a planning tool. D GT Ap
Chapter 8: Planning and Controlling
301
Contingency Planning 196.
Planning that identifies alternative courses of action that can be implemented to meet the needs of changing circumstances is called __________. A. Formal planning. B. Contingency planning. C. Just-in-time planning. D. Problem solving. E. Just-in-case planning. B KT Fa
197.
Which of the following statements about contingency planning is FALSE? A. Contingency planning occurs when planners decide the future will be identical to the past. B. Contingency planning anticipates events that may occur in the future. C. Contingency planning specifies different courses of action under different conditions. D. Contingency planning focuses on early identification of possible shifts in future events. E. Contingency planning contains trigger points that indicate when preselected alternative plans should be activated. A GT Ap
Scenario Planning 198.
__________ is a long-term version of contingency planning. A. Forecasting. B. Benchmarking. C. Participation. D. Scenario planning. E. Flexible budgeting. D GT Fa
199.
Identifying alternative future states of affairs that may occur and then developing plans to deal with each case should it actually occur is known as __________. A. Forecasting. B. Scenario planning. C. Benchmarking. D. Participation. E. Contingency planning. B KT Fa
200.
Royal Dutch/Shell uses scenario planning to explore what the company would do if and when its oil supplies run out. For Royal Dutch/Shell, the benefits of scenario planning include which of the following? A. It helps the organization to plan ahead to make major adjustments in strategies and operations. B. It conditions the company’s executives to think. C. It enables the company to be better prepared than competitors for future shocks. D. All of the above. E. None of the above. D GT Ap
302
Schermerhorn & Wright: Management
Benchmarking 201.
__________ is a technique that makes use of external comparisons to better evaluate one’s current performance and identify possible actions for the future. A. Contingency planning. B. Scenario planning. C. Forecasting. D. Management by objectives. E. Benchmarking. E KT Fa
202.
The purpose of __________ is to find out what other people and organizations are doing very well, and planning how to incorporate these ideas into one’s own operations. A. Contingency planning. B. Scenario planning. C. Benchmarking. D. Forecasting. E. Participation. C GT Fa
203.
__________ refer to those things that are done by both competitors and noncompetitors that enable them to achieve superior performance. A. Competitive goodies. B. Superior goals. C. Noncompetitive objectives. D. Best practices. E. Operating activities. D GT Fa
Use of Staff Planners 204.
__________ are individuals who lead and coordinate the planning function for an organization as a whole or for one of its major components. A. Staff planners. B. Event planners. C. Middle managers. D. Conference managers. E. Corporate secretaries. A GT Fa
205.
An important risk associated with the use of staff planners is the __________ that can develop between staff planners and line managers. A. Resistance to assistance. B. Communication gap. C. Skill discrepancies. D. A and C. E. A, B, and C. B GT Fa
Chapter 8: Planning and Controlling
303
Participation and Involvement 206.
__________ requires that the planning process include people who will be affected by the resulting plans and/or will be asked to help implement them. A. Contingency planning. B. Scenario planning. C. Strategic planning. D. Participatory planning. E. Benchmarking. D KT Fa
207.
The use of participatory planning can produce all of the following benefits EXCEPT: A. Increase creativity in planning. B. Increase commitment of people for planning. C. Increase acceptance of chosen alternatives. D. Increase conflict over scarce resources. E. Increase information available for planning. D GT Fa
208.
Which of the following statements does NOT accurately describe a feature, characteristic, or outcome of using participation in the planning process? A. To create and implement the best plans, proper attention must always be given to genuinely involving others during all planning steps. B. Only a few key people should be involved in developing plans in order to key the plans simple and to facilitate implementation. C. Participation is central to the planning process. D. Participation in the planning process can increase the amount of time spent in planning. E. Participation in the planning process can improve results by improving implementation. B GT Ap
THE CONTROL PROCESS (STUDY QUESTION 4) 209.
The word “control” must be used carefully because __________. A. Controlling is an unethical managerial practice that must be concealed. B. Most employees resent managerial control. C. The word has a negative connotation. D. Few managers actually know what it means. E. Control is malicious. C GT Fa
210.
Which of the following statements about control is/are correct? A. Control plays a positive and necessary role in the management process. B. To have things under control is good. C. To have things out of control is bad. D. B and C. E. A, B, and C. E GT Fa
304
Schermerhorn & Wright: Management
The Importance of Controlling 211.
Which of the following is the definition of controlling found in the textbook? A. Controlling refers to actions taken to reverse negative behavioural trends of employees. B. Controlling is the monitoring of the fiscal results of managerial policies. C. Controlling is the management process that separates the clever manager from the dim-witted manager. D. Controlling is a process of measuring performance and taking action to ensure desired results. E. Controlling is the set of actions that a manager takes to prevent inventory shrinkage. D KT Fa
212.
The purpose of controlling is to __________. A. Motivate employees to work overtime hours. B. Make sure plans are achieved and that actual performance meets or surpasses objectives. C. Define a plan of action for the organization. D. Coordinate resources and task performance. E. Develop a hierarchy of objectives for lower-level managers. B GT Fa
213.
Controlling does all of the following EXCEPT: A. Makes sure that performance by individuals and groups is consistent with plans. B. Ensures that objectives and accomplishments of various subgroups of the organization are consistent with each other in a means-ends fashion. C. Secures adequate financing for the enterprise. D. Makes sure employees comply with organizational policies and procedures. E. Ensures that the right things happen, in the right way, at the right time. C GT Ap
214.
A(n) __________ is a structured review of lessons learned and results accomplished on a completed project. A. Post-dated assessment. B. After-action review. C. Learning organization critique. D. Structured project analysis. E. Action planning assessment. B KT Fa
Steps in the Control Process 215.
The four steps of the control process are: establish performance objectives and standards; measure actual performance; compare actual performance with objectives and standards; and _________. A. Take corrective action as needed. B. Reap the profits. C. Pay for the losses. D. Redefine the objectives. E. Continue as before. A GT Fa
Chapter 8: Planning and Controlling
305
216.
The four steps of the control process are: establish objectives and standards; __________; compare results with objectives and standards, and __________. A. Measure actual performance take corrective action as needed. B. Develop alternative systems take corrective action as needed. C. Revise unmet objectives pay for the losses. D. Set new objectives evaluate results. E. Measure actual performance continue as before. A GT Fa
217.
Effective planning by managers helps accomplish which step in the control process? A. Measuring actual performance. B. Comparing actual performance with objectives and standards. C. Establishing performance objectives and standards. D. Taking necessary corrective action. E. Evaluating the results of corrective action. C GT Fa
218.
__________ measure performance results in terms of quantity, quality, cost, or time of accomplished work. A. Input standards. B. Output standards. C. Annual reports. D. Inventories. E. Time-card summaries. B KT Fa
219.
__________ standards measure effort in terms of the amount work expended in task performance. A. Output. B. Input. C. Cybernetic. D. Critical performance. E. Personal performance. B KT Fa
220.
In the control process, _________ must be accurate enough to identify significant difference between what is really taking place and what was originally planned. A. Goals. B. Exceptions. C. Output standards. D. Input standards. E. Measurement. E GT Ap
306
Schermerhorn & Wright: Management
221.
Which of the following is an accurate description of the control equation? A. Need for action = desired performance + actual performance. B. Need for action = performance expectations + performance deviations. C. Need for action = desired performance – actual performance. D. Need for action = performance expectations – performance deviations. E. None of these is an accurate description of the control equation. C GT Fa
222.
A manager can determine the need for corrective action by using __________ comparison measures. A. Historical. B. Relative. C. Engineering. D. All of the above. E. None of the above. D GT Fa
223.
In utilizing a historical approach for comparing desired and actual performance, a manager will __________. A. Use past performance as a benchmark. B. Use present performance to set the standard. C. Use standards set scientifically through such methods as time and motion studies. D. Use performance achievements of other people, work units, or organizations to set the standard. E. Use the organization’s objectives to set the standard. A GT Fa
224.
In utilizing a relative approach to compare desired and actual performance, a manager will __________. A. Use past performance as a benchmark. B. Use present performance to set the standard. C. Use standards set scientifically through such methods as time and motion studies. D. Use performance achievements of other people, work units, or organizations to set the standard. E. Use the organization’s objectives to set the standard. D GT Fa
225.
In utilizing an engineering approach to compare desired and actual performance, a manager will __________. A. Use past performance as a benchmark. B. Use present performance to set the standard. C. Use standards set scientifically through such methods as time and motion studies. D. Use performance achievements of other people, work units, or organizations to set the standard. E. Use the organization’s objectives to set the standard. C GT Fa
Chapter 8: Planning and Controlling
307
226.
The practice of giving priority attention to situations showing the greatest need for action is called __________. A. Management by priority. B. Management by exception. C. Management by objectives. D. Management by situation. E. Management by opportunity. B KT Fa
227.
__________ is the technique of focusing managerial attention on situations where the difference between actual and desired performance is greatest. A. High control management. B. Management by exception. C. Progressive management control. D. Critical incident management. E. Feedback control. B KT Fa
228.
When the control equation identifies a situation in which actual performance is less than desired performance, the situation is called __________. A. Substandard performance. B. A performance downfall. C. A problem situation. D. A losing situation. E. A managerial problem. C GT Fa
229.
A management exception known as the __________ occurs when actual performance is above the standard. A. Original assumption. B. Expected end result. C. Predicted end result. D. Opportunity situation. E. Intended course of action. D GT Fa
230.
Suppose that, in reviewing a quarterly report of a department’s achievements, the manager compares desired performance with actual performance. If the manager finds no deviation (that is, actual performance is EQUAL to the standard), the manager should __________. A. Take no corrective action. B. Take corrective action because the standard was too easy. C. Take action to understand why the standard was not exceeded. D. Seek more resources for the department. E. Keep the information to himself/herself. A GT Ap
308
Schermerhorn & Wright: Management
231.
Suppose that, in reviewing a quarterly report of a department’s achievements, the manager compared desired performance with actual performance. If the manager found that actual performance was GREATER than the standard, the manager should __________. A. Take no corrective action. B. Take corrective action to bring performance results in line with the standard. C. Take action to understand why actual results exceeded the standard. D. Defer action until the next quarter’s reports are in and a trend is established. E. Keep the information to himself/herself. C GT Ap
232.
Suppose that, in reviewing a quarterly report of a department’s achievements, the manager compared desired performance with actual performance. If the manager found that actual performance was LESS than the standard, the manager should __________. A. Take no corrective action. B. Take corrective action. C. Seek more resources for the department. D. Defer action until the next quarter’s reports are in and a trend is established. E. Keep the information to himself/herself. B GT Ap
Types of Controls 233.
Which of the following statements accurately characterize the major types of managerial control systems? A. Feedforward controls are also called steering controls. B. Concurrent controls are also called postaction controls. C. Feedback controls are also called preliminary controls. D. All of the above. E. None of the above. E GT Fa
234.
A feedforward control system focuses on __________. A. Work inputs. B. Work processes. C. Work throughputs. D. Work responsibilities. E. Work outputs. A KT Fa
235.
The central question of __________control is: “What needs to be done before we begin?” A. Damage. B. Feedforward. C. Concurrent. D. Feedback. E. Postaction. B GT Ap
Chapter 8: Planning and Controlling
309
236.
__________ controls are designed to anticipate potential problems and take preventive action to avoid their occurrence. A. Feedback. B. Prior. C. Feedforward. D. Postaction. E. Internal. C GT Fa
237.
A concurrent control system focuses on __________. A. Work inputs. B. Work objectives. C. Work throughputs. D. Work responsibilities. E. Work outputs. C KT Fa
238.
The central question of __________control is: “What can be done to improve things right now?” A. Damage. B. Preliminary. C. Concurrent. D. Feedback. E. Postaction. C GT Ap
239.
Shift supervisors working alongside employees, constantly observing and intervening with immediate corrective action when something is not done properly, is an example of __________ control. A. Concurrent. B. Preliminary. C. Unnecessary. D. Feedback. E. Feedforward. A GT Ap
240.
A feedback control system focuses on __________. A. Work inputs. B. Work objectives. C. Work throughputs. D. Work responsibilities. E. Work outputs. E KT Fa
310
Schermerhorn & Wright: Management
241.
Controls that focus on end results and provide information that can be used for future planning are called __________controls. A. Concurrent. B. Steering. C. Posterior. D. Feedback. E. End-result. D GT Fa
242.
The central question of __________control is: “Now that we are finished, how did we do?” A. Damage. B. Preliminary. C. Concurrent. D. Feedback. E. Feedforward. D GT Ap
243.
A cost report showing budget overruns on a project completed during the prior month is an example of which type of control? A. Cost control. B. Preliminary control. C. Feedback control. D. Steering control. E. Managerial control. C GT Ap
Internal and External Control 244.
Internal control occurs when __________. A. Motivated individuals and groups are directly supervised. B. Computers are used to monitor performance inside the organization. C. Motivated individuals and groups exercise self-discipline in fulfilling job requirements. D. Managers take responsibility for the activities in their own departments. E. Motivated managers defend the organization against outside competitive attacks. C KT Fa
245.
__________ control occurs through personal supervision and the use of formal administrative systems. A. Internal. B. External. C. Concurrent. D. Feedforward. E. Feedback. B KT Fa
Chapter 8: Planning and Controlling
311
246.
Which of the following statements about internal and external control is/are accurate? A. Effective control typically involves some combination of internal and external control. B. Organizations are increasingly relying on external control because of the emphasis on participation, empowerment, and involvement in the new workplace. C. An internal control strategy requires a high degree of trust. D. A and C. E. A, B, and C. D GT Ap
247.
The potential for self-control is increased under all of the following conditions EXCEPT: A. When people have a clear sense of organizational mission. B. When people know their performance goals. C. When people have the necessary resources to do their jobs well. D. When people work in a organization with a culture that restricts participation in decision making. E. When people treat each other with respect and consideration. D GT Ap
ORGANIZATIONAL CONTROL (STUDY QUESTION 5) MBO: Integrated Planning and Controlling 248.
__________ is a structured process of regular communication in which a supervisor/team leader and subordinates/team members jointly set performance objectives and review results accomplished. A. Communication of expected outcomes (CEO). B. Management by objectives (MBO). C. Performance management system (PMS). D. Objective setting and review (OSR). E. Partnered goal analysis (PGA). B KT Fa
249.
In management by objectives (MBO), the supervisor/team leader and subordinates/team members formally agree on all of the following except __________. A. Performance objectives for a specific time period. B. Plans for accomplishing the performance objectives. C. Standards for measuring the accomplishment of objectives. D. Procedures for reviewing performance results. E. Procedures for distributing rewards based on performance results. E GT Fa
312
Schermerhorn & Wright: Management
250.
In a management by objectives approach, the supervisor/team leader and subordinates/team members __________. A. Jointly plan, individually act, and individually control. B. Individually plan, individually act, and jointly control. C. Jointly plan, individually act, and jointly control. D. Jointly plan, jointly act, and individually control. E. Jointly plan, jointly act, and jointly control. C GT Fa
251.
In management by objectives (MBO), the objectives that are agreed on by the supervisor/team leader and the subordinates/team members can involve __________. A. Maintenance. B. Improvement. C. Personal development. D. All of the above. E. None of the above. D GT Fa
252.
Which of the following statements does NOT accurately describe a good performance objective? A. A good performance objective targets a key result to be achieved. B. A good performance objective identifies a date for achieving results. C. A good performance objective offers a realistic and attainable challenge. D. A good performance objective is as specific and quantitative as possible. E. A good performance objective specifies the consequences of achieving (or not achieving) the desired results. E GT Ap
253.
On those jobs where performance is difficult to quantify, performance objectives can be stated as __________. A. Short-range plans. B. Benchmarks. C. Verifiable work activities. D. Measurable end products. E. Personal preferences. C GT Fa
254.
In using MBO, managers should avoid all of the following actions EXCEPT: A. Linking employees’ performance objectives to compensation. B. Focusing too much attention on easily quantifiable objectives. C. Having subordinates engage in self-appraisal of their performance results in light of their performance objectives. D. Having supervisors tell subordinates what objectives they will pursue. E. Requiring excessive paperwork. C GT Ap
Chapter 8: Planning and Controlling 255.
313
Which of the following is NOT one of the advantages of management by objectives (MBO)? A. MBO clearly focuses a person’s work efforts on the most important tasks and objectives. B. MBO clearly focuses a person’s work efforts on the activities that are likely to result in the greatest rewards. C. MBO focuses a supervisor’s work efforts on areas of support that can help subordinates meet agreed-upon objectives. D. MBO contributes to relationship building. E. MBO encourages self-management rather than external supervisory control. B GT Ap
Employee Discipline Systems 256.
______________ is the act of influencing behaviour through reprimand. A. Internal control. B. Operant conditioning. C. Shaping. D. Behaviour modification. E. Discipline. E KT Fa
257.
When __________ is handled in a fair, consistent, and systematic way, it is a useful form of managerial control. A. Punishment by objectives. B. Positive punishment. C. Discipline. D. Incremental role confinement. E. Employee dismantlement. C GT Fa
258.
The “hot stove rules” refer to __________. A. A set of Occupational Safety and Health Administration (OSHA) rules for handling hot materials. B. A set of common sense rules for control of employees in the food-services industry. C. A set of guidelines for avoiding getting “burned” in receiving reprimands. D. A metaphor for a self-disciplinary control system. E. Analogies for disciplinary situations that are immediate, consistent, informative, supportive, realistic, and directed toward actions, not people. E MN Fa
259.
A hot stove burns and people should not touch a hot stove in order to avoid harm. Based on this notion, the “hot stove rules” analogy of employee discipline indicates that a reprimand should __________. A. Be directed toward someone’s actions, not his or her personality. B. Be informative. C. Occur in a supportive setting. D. All of the above. E. None of the above. D MN Fa
314
Schermerhorn & Wright: Management
260.
__________ ties reprimands to the severity and frequency of the employee’s infractions. A. Punishment by objectives. B. Positive punishment. C. Progressive discipline. D. Incremental discipline. E. Regressive discipline. C KT Fa
261.
In progressive discipline, the goal always is to achieve compliance with organizational expectations through the __________ reprimand possible. A. Most extreme. B. Least noticeable. C. Least extreme. D. Most noticeable. E. Most socially acceptable. C GT Fa
262.
A supervisor who orally warns an employee the first time he is late for work, gives him a written reprimand the second time, and suspends him for one day without pay the third time, is using a system called __________. A. Punishment by objectives. B. Positive punishment. C. Progressive discipline. D. Incremental discipline. E. “Hot stove” discipline. C GT Ap
Information and Financial Controls 263.
For control purposes, which of the following in NOT an important financial aspect of organizational performance? A. The ability to generate cash to pay bills. B. The ability to earn more in returns than the cost of the debt. C. The ability to sell shares of the company’s stock. D. The ability to use resources efficiently and operate at minimum cost. E. The ability to earn revenues greater than costs. C GT Fa
264.
Which of the following statements provides an accurate description of financial ratios? A. Liquidity ratios use information about current assets and current liabilities. B. Asset management ratios focus on the relationship between profits and either average inventory or total assets. C. Net margin and return on investment are useful leverage ratios. D. Inventory turnover is one method for determining the company’s financial liquidity. E. Leverage ratios are helpful in assessing how well assets are employed in generating sales. A MN Ap
Chapter 8: Planning and Controlling
315
Break-Even Analysis 265.
The calculation of the point at which sales revenues are sufficient to cover costs is known as __________. A. Liquidity analysis. B. Break-even analysis. C. Cost control analysis. D. Optimal inventory analysis. E. Leverage analysis. A KT Fa
266.
The __________ occurs where losses end and the firm begins to make a profit. A. Current ratio. B. Hot stove point. C. Net margin. D. Break-even point. E. Debt ratio. D GT Fa
267.
The __________ is calculated by dividing total fixed costs by price minus variable costs. A. Current ratio. B. Break-even point. C. Economic order quantity. D. Net margin. E. Inventory turnover ratio. B GT Fa
268.
Break-even analysis can be used to __________. A. Evaluate a proposed new product or program. B. Examine the impact of cost control measures. C. Experiment with different “what-if” scenarios. D. A and C. E. A, B, and C. E GT Ap
Operations Management and Control 269.
Trends in purchasing control include __________. A. Leveraging buying power. B. Committing to a small number of suppliers. C. Cultivating supplier-purchaser relationships. D. All of the above. E. None of the above. D GT Fa
316
Schermerhorn & Wright: Management
270.
Purchasing management uses its power to control costs in all of the following ways EXCEPT: A. Controlling inventory. B. Committing to a small number of suppliers that will provide quality assurances and preferred service. C. Committing to a small number of suppliers that will negotiate special contracts. D. Centralizing purchasing activities to permit volume buying. E. Developing supplier-purchaser partnerships that enable both partners to contain costs. A GT Fa
271.
The basic goal of inventory control is to __________. A. Make sure that an inventory is just the right size to meet performance needs, thus minimizing the cost. B. Make sure the company has more than enough materials to perform all jobs. C. Make sure enough supplies are on hand to satisfy customers. D. Provide a written record of materials received and materials disbursed. E. Provide a tracking system for purchases and sales. A GT Fa
272.
Ordering a fixed number of items every time an inventory level falls to a predetermined point is called the __________. A. Inventory control number. B. Quality control paradox. C. Economic order quantity. D. Break-even quantity. E. Fixed quantity inventory. C KT Fa
273.
Scheduling materials to arrive on a timely basis at a workstation or facility in order to reduce costs and improve workflow is known as __________. A. Management by objectives (MBO). B. Just-in-time (JIT) scheduling. C. Scheduling an economic order (SEO). D. Efficient production planning (EPP). E. Timely inventory control (TIC). B KT Fa
274.
In the context of control systems, __________ involves checking processes, materials, products, and services to ensure that they meet high standards. A. Purchasing control. B. Quality control. C. Inventory control. D. Management process control. E. Progressive control. B KT Fa
Chapter 8: Planning and Controlling
317
275.
__________ usually involves taking samples of work, measuring quality in the samples, and determining the acceptability of results. A. Just-in-time scheduling. B. Work variation management. C. Work sampling acceptability analysis. D. Statistical quality control. E. Break-even analysis. D GT Fa
276.
Statistical quality control is the use of statistical techniques to __________. A. Determine appropriate debt levels. B. Help make good investment decisions. C. Improve profit margins. D. All of the above. E. None of the above. E GT Ap
Essay Questions 277.
Identify and describe the steps in the planning process. Suggested Answer: The planning process consists of five steps that are followed in a sequential fashion. These steps are as follows: •
•
• •
•
278.
Step 1: define your objectives –– Identify desired outcomes or results in very specific ways. Know where you want to go; be specific enough so that you will know you have arrived when you get there, or know how far off the mark you are at various points along the way. Step 2: determine where you stand vis-à-vis objectives –– Evaluate current accomplishments relative to the desired results. Know where you stand in reaching the objectives; know what strengths work in your favor and what weaknesses may hold you back. Step 3: develop premises regarding future conditions –– Try to anticipate future events. Generate alternative scenarios for what may happen; identify for each scenario things that may help or hinder progress toward your objectives. Step 4: analyze and choose among action alternatives –– List and carefully evaluate the possible actions that may be taken. Choose the alternative(s) most likely to accomplish your objectives; decide step by step what must be done to follow the chosen course of action. Step 5: implement the plan and evaluate results –– Take action and carefully measure your progress toward objectives. Do what the plan requires; evaluate results; take corrective actions and revise plans as needed.
Describe the benefits of planning for individuals and organizations.
318
Schermerhorn & Wright: Management Suggested Answer: The benefits of planning for individuals and organizations include the following: • •
• • •
Planning improves focus and flexibility. Focus and flexibility are important to the performance of both people and organizations in highly competitive and dynamic environments. Planning improves action orientation. Planning keeps people and organizations focused on the actions that are needed to stay competitive and to become better at what they are doing. Planning helps make people and organizations more oriented toward results, priorities, advantages, and change. Planning improves coordination. Planning helps individuals, groups, and subsystems within organizations make meaningful contributions to the organization as a whole, even as they pursue their specific tasks and objectives. Planning improves control. Planning facilitates control by defining objectives and desired performance results, and identifying specific actions through which they are to be pursued. Planning improves time management. Each day, managers are bombarded by a multitude of tasks and demands. They work in a setting of frequent interruptions, crises, and unexpected events. Consequently, it can be easy to lose track of objectives and fall prey to “time wasters.”
279. Identify and briefly describe each of the six major planning tools and techniques that managers use. Suggested Answer: The six major planning tools and techniques that managers use are identified and described below: • • • • • •
280.
Forecasting is the process of making assumptions about what will happen in the future Contingency planning involves identifying alternative courses of action that can be implemented, if and when an original plan proves inadequate because of changing circumstances. Scenario planning is a long-term version of contingency planning that involves identifying several alternative future scenarios or states of affairs that may occur, and then making plans to deal with each should it actually occur. Benchmarking is a technique that makes use of external comparisons to better evaluate current performance and identify possible future actions. Participative planning requires that the planning process include people who will be affected by the resulting plans and/or will be asked to help implement them. Staff planners are persons who take responsibility for leading and coordinating the planning function for the total organization or one of its major components.
Identify and describe the four steps in the control process. Suggested Answer: The four steps in the control process are: step 1 –– establish objectives and standards; step 2 –– measure actual performance; step 3 –– compare results with objectives and standards; and step 4 –– take corrective action as needed. A brief description of each step is provided below.
Chapter 8: Planning and Controlling
281.
319
•
Step 1 –– establishing objectives and standards. The control process begins when performance objectives and standards are set through planning. Both output standards and input standards are established at this step.
•
Step 2 –– measuring actual performance. During this step, attention is devoted to accurately measuring actual performance results (output standards) and/or performance efforts (input standards).
•
Step 3 –– comparing results with objectives and standards. The comparison made at this step is summarized by the following control equation: Need for Action = Desired Performance – Actual Performance. Methods of comparing desired and actual performance can be assessed through any of the following alternatives: a historical comparison, a relative comparison, or an engineering comparison.
•
Step 4 –– taking necessary action. This step involves taking any action necessary to appropriately address differences between desired and actual performance. Managerial attention is focused on those situations with the most significant deviations between desired and actual performance. Two types of exceptions can be recognized with the control equation: a problem situation and an opportunity situation.
Assume that you and your teacher use MBO to establish objectives for your performance in a course and to monitor your progress on achieving those objectives. Explain how the MBO process could work in this situation. What types of objectives would be set? How would objective attainment be assessed? Suggested Answer: Management by objectives (MBO) is a structured process of regular communication in which a supervisor/team leader and subordinates/team members jointly set performance objectives for the subordinate/team members and review results that are accomplished. MBO involves a formal agreement between a supervisor/team leader and subordinates/team members concerning: • • • •
The subordinates’/team members’ performance objectives for a given time period. The plans through which they will be accomplished. Standards for measuring whether or not they have been accomplished. Procedures for reviewing results.
The MBO process follows the following steps: ▪ ▪ •
The supervisor/team leader and subordinates/team members jointly set objectives, establish standards, and choose actions. The subordinates/team members acts individually to perform the agreed upon tasks; and the supervisor/team leader acts individually to provide necessary support. The supervisor/team leader and subordinates/team members jointly review results, discuss implications, and renew the MBO cycle.
The students should use the preceding material to guide their discussion of how an MOB contract might be established and administered between a student and a professor. Additionally, the students should use the concepts of improvement objectives, personal development
320
Schermerhorn & Wright: Management objectives, and maintenance objectives in discussing the objectives to be set. Discussion should also focus on appropriate means for assessing the objectives that the students set.
282. Create a plan, using the steps in the planning process, to create a marketing plan for a new type of soft drink. The drink tastes great, provides energy, and has two calories. Its target market is teenagers. Suggested Answer: Answers will vary from student to student. Emphasis should be based on creativity and innovation. 283. One of the company’s best employees is consistently late. As the manager, how will you discipline this employee? Suggested Answer: The employee should be asked to explain why they are late. Using MBO, the manager and employee should establish a plan to fix the problem. If the problem persists, the employee should be warned and documented. Follow the hot stove rules.
Chapter 9:
STRATEGIC MANAGEMENT True/False Questions CHAPTER INTRODUCTION 1.
Today’s highly competitive business environment places a premium on effective strategy and strategic management as prerequisites for organizational success. T GT Ap
STRATEGIC COMPETITIVENESS (STUDY QUESTION 1) 2.
An organization with a competitive advantage is operating with an attribute or combination of attributes that allows it to outperform its competitors. T KT Fa
3
A sustainable competitive advantage is one that is difficult for competitors to imitate. T GT Fa
4.
Not only must an organization develop a competitive advantage but it must also achieve a sustainable competitive advantage. T GT Fa
What Is Strategy? 5.
A strategy is a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish goals with sustainable competitive advantage. T KT Fa
6.
Strategy is an action focus that links an organization to its environment. T GT Fa
7.
Strategic intent refers to an organization focusing its energies on a unifying and compelling target. T KT Fa
8.
Customers and flexibility increasingly drive strategy in contemporary businesses. T GT Ap
Strategic Management
321
322
Schermerhorn & Wright: Management
9.
Every strategy maker must remember that at the same time he/she is trying to create a competitive advantage for an organization, competitors are attempting to do the same. T GT Ap
10.
Strategic management is the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage. T KT Fa
11.
The essence of strategic management is looking ahead, understanding the environment and the organization, effectively positioning the organization for competitive advantage in changing times, and then achieving it. T GT Fa
Strategic Management Goals 12.
According to Harvard scholar Michael Porter, the ultimate goal for any business should be industry domination. F GT Fa
13.
Equivalent risk payoffs are those returns that exceed what an investor could earn by investing in alternative opportunities of equivalent risk. F KT Fa
14.
A competitive environment in which there is only one player and no competition in the market is called an oligopoly environment F GT Fa
15.
The monopoly environment creates absolute competitive advantage and delivers sustainable and most likely excessive business profits. T GT Fa
16.
The monopoly environment contains a few players who do not directly compete against one another. F GT Fa
17.
An oligopoly environment can sustain long-term competitive advantages within defined market segments, and can reap excessive business profits in the absence of competition within defined market segments. T GT Fa
18.
The environment in which there are at least several players who directly compete with one another is known as a hypercompetition environment. T GT Fa
19.
There are always winners and losers in hypercompetition and any competitive advantage that is realized is temporary. T GT Fa
Chapter 9: Strategic Management
323
THE STRATEGIC MANAGEMENT PROCESS (STUDY QUESTION 2) 20.
Strategy formulation and strategy implementation are the two major managerial responsibilities of the strategic management process. T GT Fa
21.
As part of the strategic management process, strategy formulation involves identifying and analyzing the existing mission, objectives, and strategies; analyzing the industry and external environment as well as organizational resources and capabilities; and revising the mission and objectives and selecting new strategies. T GT Fa
22.
As part of the strategic management process, strategy implementation involves executing strategies through corporate governance, management systems and practices, and strategic leadership. T GT Fa
23.
As part of the strategic management process, strategy formulation involves exercising strategic control and reviewing the strategic management process. F GT Fa
24.
Strategy formulation is the process of creating strategy by assessing existing strategies, the organization, and the environment in order to develop new strategies capable of delivering future competitive advantage. T KT Fa
25.
Peter Drucker indicates that managers should ask five questions in the process of formulating an organization’s strategy. These questions are: What is our business mission? Who are our customers? What do our customers consider value? What have been our results? What is our plan? T GT Fa
26.
Strategy implementation is the process of allocating resources and putting strategies into action. T KT Fa
27.
Important strategic management tasks include: identifying organizational mission and objectives; assessing current performance in relation to mission and objectives; creating strategic plans to accomplish mission and objectives; and implementing those plans. T MN Fa
Analysis of Mission, Values, and Objectives 28.
The strategic management process begins with a careful assessment and clarification of the organization’s mission, values and objectives. T GT Fa
29.
An organization’s mission is its basic reason for existence in society. T KT Fa
324
Schermerhorn & Wright: Management
30.
Michael Hammer recommends that an organization’s mission statement should address the following questions: What are we moving to? What is our dream? What kind of difference do we want to make in the world? What do we want to be known for? T GT Fa
31.
A good mission statement should describe the organization’s underlying philosophy and should clearly identify the domain in which the organization intends to operate. T GT Fa
32.
Stakeholders are individuals and groups who are directly affected by the organization and its strategic accomplishments. T GT Fa
33.
As part of the strategic planning process, a strategic constituencies analysis is concerned with assessing the interests of each group of stakeholders as well as the organization’s record in responding to them. T GT Fa
34.
Organizational culture refers to the predominant value system for an organization as a whole. T KT Fa
35.
Strong core values give character to an organization, back up the mission statement, and help guide members’ behaviour in meaningful and consistent ways. T GT Fa
36.
Operating objectives reflect the organization’s basic purpose in society. F KT Fa
37.
Operating objectives are shorter-term targets against which actual performance results can be measured as indicators of progress and continuous improvement. T GT Fa
38.
According to Peter Drucker, the common operating objectives for businesses include: profitability, market share, human talent, financial health, cost efficiency, product quality, innovation, and social responsibility. T GT Fa
Analysis of Organizational Resources and Capabilities 39.
A business can use a strategic SWOT analysis to assess its sustainability, wealth, operations, and technology. F KT Fa
40.
A SWOT analysis involves an assessment of organizational strengths and weaknesses as well as environmental opportunities and threats. T KT Fa
Chapter 9: Strategic Management
325
41.
In evaluating the organizational resources and capabilities, a major goal is to identify core competencies. T GT Fa
42.
Core competencies refer to special strengths that the organization has or things the organization does exceptionally well in comparison with competitors. T KT Fa
43.
In conducting a SWOT analysis, the presence of manufacturing efficiencies, a skilled workforce, a good market share, strong financing, and a superior reputation would be identified as a company’s strengths. T GT Fa
44.
In conducting a SWOT analysis, issues regarding outdated facilities, inadequate research and development, obsolete technologies, weak management, and past planning failures would be addressed in analyzing the company’s weaknesses. T GT Fa
45.
Efficient manufacturing technologies, unique product distribution systems, special knowledge or expertise, and superior technologies are special strengths that contribute to an organization’s core competencies. T GT Fa
Analysis of Industry and Environment 46.
Potential opportunities and threats can be in identified in the macro environment and the industry environment. T GT Fa
47.
In a SWOT analysis, macro environmental factors include the organization’s resource suppliers, competitors, and customers. F GT Fa
48.
In a SWOT analysis, industry environmental factors include developments in technology and government, social structures and population demographics, the global economy, and the natural environment. F GT Fa
49.
In conducting a SWOT analysis, a company’s threat can be examined by asking questions about possible new markets, the growth of existing markets, the emergence of new technologies, and the weaknesses of market rivals. F GT Fa
50.
In conducting a SWOT analysis, a company’s opportunities should be assessed in terms of new competitors, possible resource shortages, changing market tastes, substitute products, and new regulations. F GT Fa
326
Schermerhorn & Wright: Management
51.
According to Michael Porter, the five strategic forces that should be considered in conducting an industry analysis are: industry competitors, new entrants, suppliers, customers, and substitutes. T GT Fa
52.
From the perspective of Porter’s five forces model, an attractive industry is one in which intense rivalry already exists among competitors, there are substantial threats in terms of new competitors and substitute products, and suppliers and buyers are very powerful in bargaining over prices and quality. F GT Fa
53.
From the perspective of Porter’s five forces model, an unattractive industry is one with less intense competition, few threats from new entrants or substitutes, and low bargaining power among suppliers and buyers. F GT Fa
54.
An attractive industry is one with businesses focusing on cosmetics and high fashion. F GT Ap
STRATEGIES USED BY ORGANIZATIONS (STUDY QUESTION 3) 55.
Functional strategy, business strategy, and corporate strategy should be integrated in a means-end fashion to accomplish objectives and create sustainable competitive advantage. T GT Fa
Levels of Strategy 56.
Corporate strategy directs the organization as a whole toward sustainable competitive advantage. T
KT
Fa
57.
Corporate strategy focuses on the strategic question: “In what industries and markets should we compete?” T GT Fa
58.
Business strategy describes the strategy for a single business unit or product line. T KT Fa
59.
A strategic business unit describes a major business that operates with some autonomy within a larger enterprise. T KT Fa
60.
Functional strategy addresses the question: “How are we going to compete for customers within this industry and market?” F GT Fa
61.
Functional strategy guides the use of resources to implement business strategy. T KT Fa
Chapter 9: Strategic Management 62.
327
Corporate strategy answers the question: “How can we best utilize resources to implement our business strategy?” F KT Fa
Growth and Diversification Strategies 63.
Growth strategies pursue an increase in size and the expansion of current operations. T KT Fa
64.
A diversification strategy involves growth through expansion within the same business area. F KT Fa
65.
A concentration strategy involves growth through the acquisition of or investment in new and sometimes different business areas. F KT Fa
66.
Related diversification involves growth by acquiring new businesses or entering business areas that are related to what the organization already does. T GT Fa
67.
Unrelated diversification involves growth by acquiring new businesses or entering business areas that are different from what the organization already does. T GT Fa
68.
Diversification through vertical integration occurs where a business acquires suppliers or distributors. T KT Fa
69.
Forward integration occurs when business acquires suppliers whereas backward integration occurs when business acquires distributors. F GT Fa
70.
Any growth strategy must be well planned and well managed to achieve the desired results. T GT Ap
71.
Diversification brings the difficulties of complexity and the need to manage and integrate very dissimilar operations. T GT Ap
Restructuring and Divestiture Strategies 72.
A retrenchment strategy seeks to correct weaknesses by making changes to the current ways of operating. T KT Fa
73.
Divestiture involves closing operations and selling assets to pay creditors. F GT Fa
74.
A restructuring strategy is used where changes in the scale and/or mix of operations are implemented in order to gain both short-term efficiencies and time to prepare new strategies for improving future performance. T KT Fa
328
Schermerhorn & Wright: Management
75.
Downsizing is a retrenchment strategy that decreases the size of operations to reduce costs and improve operating efficiency. T KT Fa
76.
Liquidation involves selling off parts of an organization to refocus on core competencies, cut costs, and improve operating efficiencies. F KT Fa
Global Strategies 77.
A transnational strategy views the world as one large market, trying as much as possible to standardize products and their advertising for use everywhere. F KT Fa
78.
A globalization strategy reflects an ethnocentric view that assumes everyone everywhere wants the same thing that one has developed and sold successfully at home. T GT Fa
79.
A multidomestic strategy tries to customize products and their advertising as much as possible to fit the local needs of different countries or regions. T KT Fa
80.
A multidomestic strategy reflects a geocentric view that respects diversity and values talents around the world. F GT Fa
81.
A globalization strategy seeks balance among efficiencies in global operations and responsiveness to local markets. F KT Fa
82.
A transnational strategy reflects a polycentric view that that shows respect for both market diversity and the capabilities of locals to best interpret their strategic implications. F GT Fa
Cooperative Strategies 83.
Strategic alliances occur when two or more organizations join together in partnership to pursue an area of mutual interest. T KT Fa
84.
A strategic alliance that involves a firm contracting to purchase important services from another organization is known as a supplier alliance F GT Fa
85.
A strategic alliance that involves the development of preferred supplier relationships to guarantee a smooth and timely flow of quality materials among partners is known as an outsourcing alliance. F GT Fa
86.
A strategic alliance that involves firms joining together for sales and distribution of products or services is known as a distribution alliance. T GT Fa
Chapter 9: Strategic Management
329
E-Business Strategies 87.
An e-business strategy is the strategic use of the Internet to gain competitive advantage. T KT Fa
88.
B2B strategies use information technology and Web portals to link organizations with their customers. F GT Fa
89.
B2C strategies involve the use of information technology and Web portals to vertically link organizations with members of their supply chains. F GT Fa
90.
The merchant model is a Web-based business model that brings buyers and sellers together to make transactions. F MN Fa
91.
The advertising model is a Web-based business model that provides information or services while generating revenue from advertising. T MN Fa
92.
The brokerage model is a Web-based business model that sells products wholesale and retail through the Web. F MN Fa
93.
The subscription model is a Web-based business model that sells access to the site through subscription. T MN Fa
94.
The infomediary model is a Web-based business model that collects information on users and sells it to other businesses. T MN Fa
95.
The community model is a Web-based business model that supports the site through donations from a community of users. T MN Fa
STRATEGY FORMULATION (STUDY QUESTION 4) 96.
According to the text, the major opportunities for developing competitive advantage have traditionally included cost, quality, knowledge, timing, barriers to entry, and financial resources. T GT Fa
97.
Sustainable competitive advantage can be developed where strategy drives an emphasis on operating and/or product or service quality, or where strategy drives an emphasis on innovation and speed of delivery to market for new ideas. T GT Fa
330
Schermerhorn & Wright: Management
98.
Sustainable competitive advantage can be developed where strategy drives an emphasis on creating a market stronghold that is protected from entry by others, or where strategy drives an emphasis on investments and/or loss sustainment that competitors can’t match. T GT Fa
99.
Any competitive advantage that is gained in the contemporary global economy of intense competition must be considered to be temporary. T GT Fa
Porter’s Generic Strategies 100.
Porter’s generic strategies framework combines the market scope and source of competitive advantage variables to generate four generic strategies that an organization can pursue in seeking to gain a strategic advantage. T GT Fa
101.
In Michael Porter’s generic strategies model, market scope measures the breadth or narrowness of the target market, and source of competitive advantage reflects whether the advantage is sought through lower price or product uniqueness. T GT Fa
102.
In Michael Porter’s generic strategies model, the market scope and source of competitive advantage variables combine to generate the four generic strategies ⎯ stars, cash cows, dogs, and question marks ⎯ that a organization can pursue in seeking to gain a strategic advantage. F GT Fa
103.
Michael Porter’s generic strategies model identifies four fundamental strategies: differentiation, cost leadership, focused differentiation, and focused cost leadership. T GT Fa
104.
Organizations pursuing a differentiation strategy seek a competitive advantage by directing the organization’s resources and attention toward distinguishing its products from those of the competition. T KT Fa
105.
Organizations pursuing a cost leadership strategy seek a competitive advantage by directing the organization’s resources and attention toward minimizing costs to operate more efficiently than the competition. T KT Fa
106.
Organizations pursuing a focused cost leadership strategy seek a competitive advantage by concentrating on one special market segment and trying to offer customers in that segment a unique product. F KT Fa
107.
Organizations pursuing a focused differentiation strategy seek a competitive advantage by concentrating on one special market segment and trying to be the lowest cost provider in that segment. F KT Fa
Chapter 9: Strategic Management
331
108.
The objective of the differentiation strategy is to attract customers who become loyal to the organization’s products and lose interest in those of competitors. T KT Fa
109.
The objective of the cost leadership strategy is to continuously improve the operating efficiencies of production, distribution, and other organizational systems. T KT Fa
110.
The objective of the focus strategy is to target organizational resources and expertise toward a particular customer group, geographical region, or product or service line. T KT Fa
Portfolio Planning 111.
The portfolio planning approach seeks the best mix of investments of scarce resources among competing business opportunities. T KT Fa
112.
The Boston Consulting Group identifies differentiation, cost leadership, focused differentiation, and focused cost leadership as alternative generic strategies that an organization can follow. F GT Fa
113.
The BCG matrix is a portfolio planning model of strategic planning that helps to identify business opportunities on the basis of market growth rates and market share. T KT Fa
114.
In the BCG matrix, a “star” refers to an organization or subunit that has a high market share in a high-growth market. T GT Fa
115.
A “cash cow,” as the term is used by the Boston Consulting Group, refers to an organization or subunit that has a high market share in a low-growth market. T GT Fa
116.
According to the BCG matrix, a “question mark” refers to an organization or subunit that has a low market share in a low-growth market. F GT Fa
117.
In the terminology of the Boston Consulting Group, a “dog” refers to an organization or subunit that has a low market share in a high-growth market. F GT Fa
118.
The preferred strategy for promising questions marks is growth, while the preferred strategy for less promising question marks is restructuring or divestiture. T GT Ap
119.
The preferred strategy for stars is growth through resource investment whereas the preferred strategy for dogs is retrenchment by divestiture. T GT Ap
332 120.
Schermerhorn & Wright: Management In the BCG matrix, cows should be milked to generate cash that can be used to support investments in stars and question marks. T GT Ap
Adaptive Strategies 121.
The major premise of adaptive strategies is that organizations should pursue product/market strategies that are congruent with the nature of their external environments. T GT Fa
122.
An organization is following an analyzer strategy when it pursues innovation and new opportunities in the face of risk and with prospects for growth. F GT Fa
123.
An organization is following a defender strategy when it tries to protect current market share by emphasizing existing products and without seeking growth. T GT Fa
124.
An organization is following a prospector strategy when it seeks to maintain stability of a core business while exploring selective opportunities for innovation and change. F GT Fa
125.
An organization is following a reactor strategy when it simply responds to competitive pressures in order to survive. T GT Fa
Incrementalism and Emergent Strategy 126.
Incrementalism is the view that strategies take shape, change, and develop over time as modest adjustments to past patterns. T GT Fa
127.
Modest and incremental changes in strategy occur as managers learn from experience and make adjustments. T
GT
Ap
128.
Emergent strategies develop progressively over time as managers make “streams” of decisions while they learn from and respond to work situations. T KT Fa
129.
Emergent strategic planning enables managers to hone their planning “craftsmanship” by developing and implementing incremental changes, and by drawing on their responses to and learning from work situations. T GT Ap
Chapter 9: Strategic Management
333
STRATEGY IMPLEMENTATION (STUDY QUESTION 5) Management Practices and Systems 130.
Successful strategies require that the entire organization and all of its resources will be mobilized in support of the strategies. T GT Fa
131.
Successful strategies require supporting structures, well-designed tasks and workflows, and the right people. T GT Fa
132.
Successful strategies require leaders who can energize people and build performance commitments. T GT Fa
133.
The strategic planning pitfall known as “failures of process” occurs when inadequate attention is paid to the analysis of mission and purpose, core values and corporate culture, organizational strengths and weaknesses, and environmental opportunities and threats. F GT Fa
134.
Poor handling of the ways in which various aspects of strategic planning are accomplished constitutes a strategic planning pitfall known as “failures of substance.” F GT Fa
135.
The lack of participation error is the failure to include key persons in the strategic planning effort. T GT Fa
136.
Goal displacement is the tendency to get so bogged down in details that the planning process becomes an end in itself instead of a means to an end. T GT Fa
Corporate Governance 137.
Corporate governance refers to the system of control and performance monitoring of top management that is maintained by boards of directors and other major stakeholder representatives. T KT Fa
138.
Boards of directors are formally charged with ensuring that an organization operates in the best interests of its owners or the representative public in the case of nonprofit organizations. T GT Fa
139.
Boards of directors may be criticized for being too compliant in endorsing or confirming the strategic initiatives of top management. T GT Fa
334 140.
Schermerhorn & Wright: Management Board members are increasingly expected to exercise control and take active roles in ensuring that strategic management of an enterprise is successful; and top management probably feels more performance accountability to boards of directors and other stakeholders. T GT Fa
Strategic Leadership 141.
Strategic leadership refers to a leader’s capability to inspire people to successfully engage in a process of continuous change, refinement, and implementation of organizational strategies. T KT Fa
142.
The critical tasks of strategic leadership include: (a) being a guardian of tradeoffs by ensuring that the organization’s resources are allocated in ways consistent with the strategy, and (b) creating a sense of urgency by not allowing the organization and its members to grow slow and complacent. T GT Fa
143.
Effective strategic leadership can occur without the leader being a teacher of the strategy or being a great communicator to ensure that everyone understands the strategy. F GT Fa
144.
Because the challenges faced by contemporary organizations are so complex, strategic management is increasingly viewed as a team leadership responsibility. T GT Fa
Multiple Choice Questions CHAPTER INTRODUCTION 145.
Today’s highly competitive business environment places a premium on effective __________ and __________ as prerequisites for organizational success. A. Time management operations management. B. Inventory control tactical management. C. Strategy employee discipline. D. Strategy strategic management. E. Performance measurement strategic management. D GT Ap
STRATEGIC COMPETITIVENESS (STUDY QUESTION 1) 146.
When an organization has __________, it is operating with an attribute or combination of attributes that allows it to outperform its competitors. A. Competitive success. B. Competitive effectiveness. C. Competitive advantage. D. Dominating competition. E. Monopolistic behaviour. C KT Fa
Chapter 9: Strategic Management
335
147.
__________ is one that is difficult for competitors to imitate. A. Superior performance capability. B. Hypercompetitive success. C. Sustainable competitive success. D. Ongoing competitive effectiveness. E. Sustainable competitive advantage. E GT Fa
148.
Which of the following statements is NOT accurate? A. The ultimate goal of any organization is to simply achieve competitive advantage. B. The ultimate goal of any organization is to achieve sustainable competitive advantage. C. A sustainable competitive advantage is one that is difficult for competitors to imitate. D. To gain sustainable competitive advantage, an organization must consistently deal with market and environmental forces better than its competitors. E. The task of achieving a sustainable competitive advantage can be challenging in any setting. A GT Fa
What Is Strategy? 149.
A comprehensive plan of action that identifies long-term direction for an organization and guides resource utilization to accomplish an organization’s goals with sustainable competitive advantage is known as the __________. A. Operating philosophy. B. Strategy. C. Planning objectives. D. Operating objectives. E. Official objectives. B KT Fa
150.
__________ refers to an action focus that links an organization to its environment. A. Objective setting. B. Ecological management. C. Problem-solving. D. Strategy. E. Decision making. D GT Fa
151.
__________ refers to an organization focusing its energies on a unifying and compelling target. A. Strategic intent. B. The operational plan. C. The functional plan. D. Strategic thinking. E. Managing with sound objectives. A KT Fa
336
Schermerhorn & Wright: Management
152.
A __________ is a plan for using resources consistent with __________. A. Strategy strategic intent. B. Vision strategic intent. C. Budget transformational leadership. D. Strategy transformational leadership. E. Strategy visionary leadership. A GT Fa
153.
Customers and flexibility increasingly drive __________ in contemporary businesses. A. Objective setting. B. Communications. C. Problem solving. D. Strategy. E. Decision making. D GT Ap
Strategic Management 154.
__________ refers to the process of formulating and implementing strategies to accomplish longterm goals and sustain competitive advantage. A. Strategic management. B. Managerial planning. C. Problem solving. D. Portfolio planning. E. Environmental scanning. A KT Fa
155.
The essence of __________ is looking ahead, understanding the environment and the organization, effectively positioning the organization for competitive advantage in changing times, and then achieving it.. A. Managerial planning. B. Strategic management C. Problem solving. D. Portfolio planning. E. Environmental scanning. B GT Fa
Strategic Management Goals 156.
According to Harvard scholar Michael Porter, the ultimate goal for any business should be __________. A. Maximum wealth creation. B. Maximum market share. C. Superior profitability. D. Industry domination. E. Total customer satisfaction. C GT Fa
Chapter 9: Strategic Management
337
157.
_________ are those returns that exceed what an investor could earn by investing in alternative opportunities of equivalent risk. A. Performance opportunity returns. B. Above-average returns. C. Excessive profits. D. Equivalent risk payoffs. E. Investor wealth returns. B KT Fa
158.
A competitive environment in which there is only one player and no competition in the market is called a(n) __________. A. Domineering company. B. Monopoly environment. C. Hypercompetition company. D. Oligopoly environment. E. Dysfunctional environment. B GT Fa
159.
Which one of the following statements does NOT provide an accurate description of the monopoly environment? A. It is an environment in which there is only one player and no competition. B. It is an environment that creates absolute competitive advantage. C. It is an environment that delivers sustainable and most likely excessive business profit. D. Alternatives A and B provide accurate descriptions of the monopoly environment. E. Alternatives A, B, and C provide accurate descriptions of the monopoly environment. E GT Fa
160.
The __________ contains a few players who do not directly compete against one another. A. Anticompetitive environment. B. Monopoly environment. C. Hypercompetition environment. D. Oligopoly environment. E. Dysfunctional environment. D GT Fa
161.
An oligopoly environment can be described as an environment __________. A. With few players who do not directly compete against one another. B. That can sustain long-term competitive advantages within defined market segments. C. That can reap excessive business profits in the absence of competition within defined market segments. D. All of the above. E. None of the above. D GT Fa
338
Schermerhorn & Wright: Management
162.
The environment in which there are at least several players who directly compete with one another is known as a(n) __________. A. Monopoly environment. B. Hypercompetition environment. C. Oligopoly environment. D. Pure competitor environment. E. Perfect competition environment. B GT Fa
163.
The environment of hypercompetition is characterized by all of the following EXCEPT: A. Hypercompetition is fostered by a global economy. B. Hypercompetition is direct and intense. C. There are always winners and losers in hypercompetition. D. Any competitive advantage that is realized in hypercompetition is relatively permanent. E. Profits can be attractive but intermittent. D GT Fa
THE STRATEGIC MANAGEMENT PROCESS (STUDY QUESTION 2) 164.
The major responsibilities of the strategic management process include: A. Strategy formulation. B. Strategy implementation. C. Strategy design. D. A and B. E. B and C. D GT Fa
165.
As part of the strategic management process, strategy formulation involves __________. A. Identifying and analyzing the existing mission, objectives, and strategies. B. Analyzing the industry and external environment as well as organizational resources and capabilities. C. Revising the mission and objectives and selecting new strategies. D. All of the above. E. None of the above. D GT Fa
166.
As part of the strategic management process, strategy implementation involves __________. A. Corporate governance, management systems and practices, and strategic leadership. B. Exercising strategic control. C. Review of the strategic management process. D. B and C. E. A, B, and C. E GT Fa
Chapter 9: Strategic Management
339
167.
__________ is the process of creating strategy by assessing existing strategies, the organization, and the environment in order to develop new strategies capable of delivering future competitive advantage. A. Strategy planning. B. Strategy formulation. C. Strategy development. D. Strategy review. E. Strategy analysis. B KT Fa
168.
Peter Drucker indicates that managers should ask five questions in the process of formulating an organization’s strategy. Which of the following is NOT one of these questions? A. What is our business mission? B. Who are our customers? C. What do our customers consider value? D. Who are our competitors? E. What have been our results? D GT Fa
169.
__________ is the process of allocating resources and putting strategies into action. A. Mission implementation. B. Action planning. C. Strategy implementation D. Vision activation. E. Managerial budgeting. C KT Fa
170.
The __________ responsibility of strategic management requires decisions, imposes risks, demands allocation of resources, and requires work in order for the strategies to be effectively executed. A. Objective setting. B. Core values assessment. C. Environmental scanning. D. Cultural determination. E. Strategy implementation. E GT Fa
171.
Important strategic management tasks include all of the following EXCEPT: A. Identifying organizational mission and objectives. B. Assessing current performance in relation to mission and objectives. C. Creating strategic plans to accomplish mission and objectives, and implementing those plans. D. Evaluating the results, and changing strategic plans or implementation processes as necessary. E. Providing visionary and inspirational leadership. E MN Fa
340 172.
Schermerhorn & Wright: Management In evaluating the success of strategic management, certain crucial questions need to be asked and answered. Which of the following is NOT one of these crucial questions? A. What business are we in? B. Where do we want to go? C. How well did we do in the past? D. How can we get where we really want to be? E. Has everything been done that needs to be done? C MN Fa
Analysis of Mission, Values, and Objectives 173.
The __________ begins with a careful assessment and clarification of organizational mission, values, and objectives. A. Organizational planning process. B. Strategic management process. C. Culture formation process. D. Organizational design process. E. Organizational change process. B GT Fa
174.
__________refer(s) to an organization’s basic reason for existence in society. A. Core values. B. Competitive advantage. C. Strategic objectives. D. Mission. E. Strategic advantage. D KT Fa
175.
The mission of an organization describes its __________. A. Basic purpose. B. Strategic edge. C. Competitive advantage. D. Environmental scanning. E. Strategic advantage. A KT Fa
176.
Michael Hammer recommends that an organization’s mission statement should address certain questions, including which of the following? A. What are we moving to? B. What is our dream? C. What kind of difference do we want to make in the world? D. All of the above. E. None of the above. D GT Fa
Chapter 9: Strategic Management
341
177.
A good mission statement should incorporate all of the following elements EXCEPT: A. The products/services the firm intends to provide. B. The location in which the firm intends to operate. C. The underlying corporate philosophy. D. The customers the firm will serve. E. The nature of the competitive environment. E GT Fa
178.
__________ are individuals and groups who are directly affected by the organization and its strategic accomplishments. A. Lease holders. B. Stakeholders. C. Landlords. D. Holding companies. E. Integral alliances. B GT Fa
179.
As part of the strategic planning process, a __________ is concerned with assessing the interests of each group of stakeholders as well as the organization’s record in responding to them. A. Mission and domain analysis. B. Corporate culture analysis. C. Competitor analysis. D. Strategic constituencies analysis. E. Business portfolio planning analysis. D GT Fa
180.
Organizational culture refers to __________. A. A culture in which corporations dominate other social institutions. B. The predominant value system for an organization as a whole. C. The process by which managerial values are transferred to society as a whole. D. The value system of top management. E. A term used by academicians to describe a capitalist society. B KT Fa
181.
Which of the following statements accurately describe the benefits associated with strong core values? A. Strong core values give character to an organization. B. Strong core values back up the mission statement. C. Strong core values help guide members’ behaviour in meaningful and consistent ways. D. A and B. E. A, B, and C.. E GT Fa
342
Schermerhorn & Wright: Management
182.
Organizational culture accomplishes all of the following EXCEPT: A. It determines the strategy to be pursued. B. It shapes the values of managers and other organization members. C. It points people in common directions. D. It helps build institutional identity. E. It backs up the mission statement. A GT Fa
183.
__________ direct activities toward key and specific performance results. A. Corporate objectives. B. Official objectives. C. Strategic objectives. D. Operating objectives. E. Planning objectives. D KT Fa
184.
__________ are shorter-term targets against which actual performance results can be measured as indicators of progress and continuous improvement. A. Corporate objectives. B. Official objectives. C. Strategic objectives. D. Planning objectives. E. Operating objectives. E GT Fa
185.
According to Peter Drucker, the common operating objectives for organizations might include all of the following EXCEPT: A. Producing at a net profit in business. B. Gaining and holding a specific share of a product market. C. Recruiting and maintaining a high-quality workforce. D. Acquiring financial capital and earning positive returns. E. Developing a strong culture to effectively mold employees’ behaviour. E GT Fa
186.
According to Peter Drucker, the common operating objectives for organizations might include all of the following EXCEPT: A. Using resources well to operate at low cost. B. Designing an adaptive organization. C. Producing high-quality goods or services. D. Developing new products and/or processes. E. Making a positive contribution to society. B GT Fa
Chapter 9: Strategic Management
343
Analysis of Organizational Resources and Capabilities 187.
A(n) ____________ involves an assessment of organizational strengths and weaknesses as well as environmental opportunities and threats. A. Organizational objectives analysis. B. SWOT analysis. C. Profitability analysis. D. Efficiency analysis. E. Managerial objectives analysis. B KT Fa
188.
In evaluating the organizational resources and capabilities, a major goal is to identify the organization’s __________. A. Core competencies. B. Operating objectives. C. Strategic objectives. D. Important external stakeholders. E. Potential investors. A GT Fa
189.
__________ refer to special strengths that the organization has or things the organization does exceptionally well in comparison with competitors. A. Special capabilities. B. Favorable organizational attributes. C. Special characteristics. D. Organizational strength factors. E. Core competencies. E KT Fa
190.
In conducting a SWOT analysis, the examination of organizational strengths should consider all of the following factors EXCEPT: A. Manufacturing bottlenecks. B. A skilled workforce. C. A good market share. D. Strong financing. E. A superior reputation A GT Fa
191.
In conducting a SWOT analysis, the presence of manufacturing efficiencies, a skilled workforce, a good market share, strong financing, and a superior reputation would be identified as a company’s __________. A. Strategies. B. Strengths. C. Weakness. D. Opportunities. E. Threats. B GT Fa
344
Schermerhorn & Wright: Management
192.
In doing a SWOT analysis, the examination of organizational weaknesses should consider all of the following factors EXCEPT: A. Outdated facilities. B. Inadequate research and development C. Obsolete technologies. D. Weak management. E. Past planning successes. E GT Fa
193.
In conducting a SWOT analysis, issues regarding outdated facilities, inadequate research and development, obsolete technologies, weak management, and past planning failures would be addressed in analyzing the company’s __________. A. Strategies. B. Strengths. C. Weaknesses. D. Opportunities. E. Threats. C GT Fa
194.
Core competencies can be found in an organization’s special strengths. Which of the following is NOT one of these special organizational strengths? A. Efficient manufacturing technologies. B. Unique product distribution systems. C. Favorable governmental regulations. D. Special knowledge or expertise. E. Superior technologies. C GT Fa
Analysis of Industry and Environment 195.
Potential opportunities and threats can be in identified in __________ and __________. A. The external organizational environment … the internal organizational environment. B. The internal SWOT analysis … the external SWOT analysis. C. The macro environment … the industry environment. D. The organization’s strengths … weaknesses. E. The organization’s mission … culture. C GT Fa
196.
In a SWOT analysis, macro environmental factors include developments in all of the following areas EXCEPT: A. Technology and government. B. Social structures and population demographics. C. Resource suppliers. D. The global economy. E. The natural environment. C GT Fa
Chapter 9: Strategic Management
345
197.
In a SWOT analysis, industry environmental factors include the organization’s __________. A. Resource suppliers. B. Competitors. C. Customers. D. All of the above. E. None of the above. D GT Fa
198.
In conducting a SWOT analysis, the examination of opportunities within the industry and macro environments should consider all of the following factors EXCEPT: A. Possible new markets. B. Strong economy. C. Strong market rivals. D. Emerging technologies. E. Growth of existing market. C GT Fa
199.
In conducting a SWOT analysis, a company’s __________ can be examined by asking questions about possible new markets, the growth of existing markets, the emergence of new technologies, and the weaknesses of market rivals. A. Strategies. B. Strengths. C. Weakness. D. Opportunities. E. Threats. D GT Fa
200.
In doing a SWOT analysis, the examination of threats within the industry and macro environments should address all of the following elements EXCEPT: A. New competitors. B. Abundance of resources. C. Changing market tastes. D. New regulations. E. Substitute products. B GT Fa
201.
In conducting a SWOT analysis, a company’s __________ should be assessed in terms of new competitors, possible resource shortages, changing market tastes, substitute products, and new regulations. A. Strategies. B. Strengths. C. Weakness. D. Opportunities. E. Threats. E GT Fa
346
Schermerhorn & Wright: Management
202.
Which of the following is NOT one of the five strategic forces that should be considered in conducting an industry analysis? A. Intensity of rivalry among firms in the industry. B. Threats of new competitors entering the market. C. Impact of developments in information technology. D. Bargaining power of buyers. E. Threats of substitute products or services. C GT Fa
203.
From the perspective of Porter’s five forces model, a(n) __________ is one in which intense rivalry already exists among competitors, there are substantial threats in terms of new competitors and substitute products, and suppliers and buyers are very powerful in bargaining over prices and quality. A. Attractive industry. B. Unattractive industry. C. Competitive industry. D. Noncompetitive industry. E. Normal industry. B GT Fa
204.
From the perspective of Porter’s five forces model, a(n) __________ is one with less intense competition, few threats from new entrants or substitutes, and low bargaining power among suppliers and buyers. A. Attractive industry. B. Unattractive industry. C. Competitive industry. D. Noncompetitive industry. E. Normal industry. A GT Fa
STRATEGIES USED BY ORGANIZATIONS (STUDY QUESTION 3) 205.
Functional strategy, business strategy, and corporate strategy should be integrated in a __________ to accomplish objectives and create sustainable competitive advantage. A. Supply chain fashion. B. Means-end fashion. C. MBO network. D. Decision support system. E. External control framework. B GT Fa
Chapter 9: Strategic Management
347
Levels of Strategy 206.
Which of the following lists correctly identifies the different levels of strategy that can exist in a business? A. Corporate strategy, business strategy, and functional strategy. B. Institutional strategy, corporate strategy, and business strategy. C. Growth strategy, retrenchment strategy, and stability strategy. D. Corporate strategy, divisional strategy, and work group strategy. E. Top-level strategy, middle-level strategy, and lower-level strategy. A GT Fa
207.
__________ directs the organization as a whole toward sustainable competitive advantage. A. Vision. B. Corporate strategy. C. Mission. D. Business strategy. E. Functional strategy. B KT Fa
208.
__________ focuses on the strategic question: “In what industries and markets should we compete?” A. Environmental strategy. B. Functional strategy. C. Competitive strategy. D. Business strategy. E. Corporate strategy. E GT Fa
209.
__________ sets direction and guides resource allocation for the entire enterprise. A. Environmental strategy. B. Functional strategy. C. Business strategy. D. Corporate strategy. E. Competitive strategy. D GT Fa
210.
__________ describes the strategy for a single business unit or product line. A. Vision. B. Corporate strategy. C. Mission. D. Business strategy. E. Environmental strategy. D KT Fa
348
Schermerhorn & Wright: Management
211.
__________ describes strategic intent with respect to how a division or strategic business unit will compete in a specific industry or market. A. Vision. B. Corporate strategy. C. Mission. D. Business strategy. E. Environmental strategy. D GT Fa
212.
A __________ describes a major business that operates with some autonomy within a larger enterprise. A. Strategic alliance. B. Self-managing business. C. Strategic business unit. D. Leadership business unit. E. Structural business partnership. C KT Fa
213.
__________ addresses the question: “How are we going to compete for customers within this industry and market?” A. Environmental strategy. B. Functional strategy. C. Operating strategy. D. Business strategy. E. Corporate strategy. D GT Fa
214.
__________ guides the use of resources to implement business strategy. A. Competitive strategy. B. Corporate strategy. C. Objective formulation D. Business strategy. E. Functional strategy. E KT Fa
215.
__________ focuses on activities within a specific area of operations such as marketing, manufacturing, finance, and human resources. A. Environmental strategy. B. Operating strategy. C. Functional strategy. D. Business strategy. E. Corporate strategy. C KT Fa
Chapter 9: Strategic Management 216.
349
__________ answers the question: “How can we best utilize resources to implement our business strategy?” A. Environmental strategy. B. Functional strategy. C. Operating strategy. D. Business strategy. E. Corporate strategy. B KT Fa
Growth and Diversification Strategies 217.
__________ strategies pursue an increase in size and the expansion of current operations. A. Growth. B. Retrenchment. C. Stability. D. Combination. E. Operational. A KT Fa
218.
A __________ strategy involves growth through expansion within the same business area. A. Concentration. B. Diversification. C. Related diversification. D. Unrelated diversification. E. Vertical integration. A KT Fa
219.
A __________ strategy involves growth through the acquisition of or investment in new and sometimes different business areas. A. Concentration. B. Diversification. C. Related diversification. D. Unrelated diversification. E. Vertical integration. B KT Fa
220.
__________ involves growth by acquiring new businesses or entering business areas that are related to what the organization already does. A. Concentration. B. Related diversification. C. Unrelated diversification. D. Forward integration. E. Vertical integration. B GT Fa
350
Schermerhorn & Wright: Management
221.
__________ involves growth by acquiring new businesses or entering business areas that are different from what the organization already does. A. Concentration. B. Related diversification. C. Unrelated diversification. D. Backward integration. E. Vertical integration. C GT Fa
222.
Diversification through __________ occurs where a business acquires suppliers or distributors. A. Concentration. B. Related diversification. C. Unrelated diversification. D. Divestiture. E. Vertical integration. E KT Fa
223.
__________ occurs when business acquires suppliers. A. Backward integration. B. Inside-out integration. C. Forward integration. D. Outside-in integration. E. Horizontal integration. A GT Fa
224.
__________ occurs when business acquires distributors. A. Backward integration. B. Inside-out integration. C. Forward integration. D. Outside-in integration. E. Horizontal integration. C GT Fa
225.
Which of the following statements about growth and diversification strategies is/are accurate? A. The pursuit of any organizational growth strategy is a clear and powerful indicator that the organization is effective. B. Any growth strategy must be well planned and well managed to achieve the desired results. C. Diversification brings the difficulties of complexity and the need to manage and integrate very dissimilar operations. D. A and C. E. B and C. E GT Ap
Restructuring and Divestiture Strategies 226.
A __________ seeks to correct weaknesses by making changes to the current ways of operating. A. Retrenchment strategy. B. Related diversification strategy. C. Unrelated diversification strategy. D. Backward integration strategy. E. Forward integration strategy. A KT Fa
Chapter 9: Strategic Management
351
227.
Liquidation, restructuring, downsizing, rightsizing, and divestiture are examples of which organizational strategy? A. Competition. B. Cooperation. C. Growth. D. Retrenchment. E. Stability. D GT Fa
228.
Which description of retrenchment is incorrect? A. Liquidation is the most extreme form of retrenchment. B. Restructuring is a less extreme form of retrenchment. C. Backward integration involves implementing changes in the scale and/or mix of operations in order to gain efficiency and improve performance. D. Restructuring is sometimes accomplished through downsizing. E. Restructuring by divestiture involves selling off parts of the organization to refocus on core competencies, cut costs, and improve operating efficiency. C GT Fa
229.
__________ involves closing operations and selling assets to pay creditors. A. Strategic alliances. B. Divestiture. C. Turnaround. D. Diversification. E. Liquidation. E GT Fa
230.
A __________ is used where changes in the scale and/or mix of operations are implemented in order to gain both short-term efficiencies and time to prepare new strategies for improving future performance. A. Restructuring strategy. B. Related diversification strategy. C. Unrelated diversification strategy. D. Backward integration strategy. E. Forward integration strategy. A KT Fa
231.
__________ is a retrenchment strategy that decreases the size of operations in order to reduce costs and improve operating efficiency. A. Liquidation. B. Turnaround. C. Diversification. D. Concentration. E. Downsizing. E KT Fa
352 232.
Schermerhorn & Wright: Management __________ involves selling off parts of an organization to refocus on core competencies, cut costs, and improve operating efficiencies. A. Diversification. B. Concentration. C. Divestiture. D. Turnaround. E. Liquidation. C KT Fa
Global Strategies 233.
A(n) __________ views the world as one large market, trying as much as possible to standardize products and their advertising for use everywhere. A. Globalization strategy. B. Antidomestic strategy. C. Multidomestic strategy. D. Transnational strategy. E. Crosscultural strategy. A KT Fa
234.
A globalization strategy reflects a(n) __________ that assumes everyone everywhere wants the same thing that one has developed and sold successfully at home. A. Mesocentric view. B. Ethnocentric view. C. Polycentric view. D. Geocentric view. E. Concentric view. B GT Fa
235.
A(n) __________ tries to customize products and their advertising as much as possible to fit the local needs of different countries or regions. A. Globalization strategy. B. Antidomestic strategy. C. Multidomestic strategy. D. Transnational strategy. E. Crosscultural strategy. C KT Fa
236.
A multidomestic strategy reflects a(n) __________ that that shows respect for both market diversity and the capabilities of locals to best interpret their strategic implications. A. Mesocentric view. B. Ethnocentric view. C. Polycentric view. D. Geocentric view. E. Concentric view. C GT Fa
Chapter 9: Strategic Management
353
237.
A(n) __________ seeks balance among efficiencies in global operations and responsiveness to local markets. A. Globalization strategy. B. Antidomestic strategy. C. Multidomestic strategy. D. Transnational strategy. E. Crosscultural strategy. D KT Fa
238.
A transnational strategy reflects a(n) __________ that respects diversity and values talents around the world. A. Mesocentric view. B. Ethnocentric view. C. Polycentric view. D. Geocentric view. E. Concentric view. D GT Fa
Cooperative Strategies 239.
__________ occur(s) when two or more organizations join together in partnership to pursue an area of mutual interest. A. Vertical integration. B. Horizontal integration. C. Strategic alliances. D. Strategic contracts. E. Organizational collusion. C KT Fa
240.
A strategic alliance that involves a firm contracting to purchase important services from another organization is known as a(n) __________. A. Political alliance. B. Entrepreneurial alliance. C. Outsourcing alliance. D. Supplier alliance. E. Distribution alliance. C GT Fa
241.
A strategic alliance that involves the development of preferred supplier relationships to guarantee a smooth and timely flow of quality materials among partners is known as a(n) __________. A. Political alliance. B. Entrepreneurial alliance. C. Outsourcing alliance. D. Supplier alliance. E. Distribution alliance. D GT Fa
354 242.
Schermerhorn & Wright: Management A strategic alliance that involves firms joining together for sales and distribution of products or services is known as a(n) __________. A. Political alliance. B. Entrepreneurial alliance. C. Outsourcing alliance. D. Supplier alliance. E. Distribution alliance. E GT Fa
E-Business Strategies 243.
A(n) __________ is the strategic use of the Internet to gain competitive advantage. A. Growth strategy. B. Focused differentiation strategy. C. E-business strategy D. Incrementalism strategy. E. Emergent strategy. C KT Fa
244.
__________ involve the use of information technology and Web portals to vertically link organizations with members of their supply chains. A. B2B strategies. B. B2C strategies. C. O2C strategies. D. O2M strategies. E. O2B strategies. A GT Fa
245.
__________ use information technology and Web portals to link organizations with their customers. A. B2B strategies. B. B2C strategies. C. O2C strategies. D. O2M strategies. E. O2B strategies. B GT Fa
246.
The __________ is a Web-based business model that brings buyers and sellers together to make transactions. A. Brokerage model. B. Advertising model. C. Merchant model. D. Subscription model. E. Infomediary model. A MN Fa
Chapter 9: Strategic Management
355
247.
The __________ is a Web-based business model that provides information or services while generating revenue from advertising. A. Advertising model. B. Merchant model. C. Subscription model. D. Infomediary model. E. Community model. A MN Fa
248.
The __________ is a Web-based business model that sells products wholesale and retail through the Web. A. Brokerage model. B. Advertising model. C. Merchant model. D. Subscription model. E. Infomediary model. C MN Fa
249.
The __________ is a Web-based business model that sells access to the site through subscription. A. Advertising model. B. Merchant model. C. Subscription model. D. Infomediary model. E. Community model. C MN Fa
250.
The __________ is a Web-based business model that collects information on users and sells it to other businesses. A. Brokerage model. B. Advertising model. C. Merchant model. D. Subscription model. E. Infomediary model. E MN Fa
251.
The __________ is a Web-based business model that supports the site through donations from a community of users. A. Advertising model. B. Merchant model. C. Subscription model. D. Infomediary model. E. Community model. E MN Fa
356
Schermerhorn & Wright: Management
STRATEGY FORMULATION (STUDY QUESTION 4) 252.
According to the text, the major opportunities for developing competitive advantage have traditionally included all of the following EXCEPT: A. Cost and quality. B. Knowledge and timing. C. Barriers to entry. D. Financial resources. E. Social progress. E GT Fa
253.
Which of the following situational descriptions does NOT describe one of the four major opportunities for developing sustainable competitive advantage that are identified in the text? A. Sustainable competitive advantage occurs where strategy drives an emphasis on operating and/or product or service quality. B. Sustainable competitive advantage occurs where strategy drives an emphasis on innovation and speed of delivery to market for new ideas. C. Sustainable competitive advantage occurs where strategy drives an emphasis on securing high quality human resources. D. Sustainable competitive advantage occurs where strategy drives an emphasis on creating a market stronghold that is protected from entry by others. E. Sustainable competitive advantage occurs where strategy drives an emphasis on investments and/or loss sustainment that competitors can’t match. C GT Fa
254.
Any competitive advantage that is gained in the contemporary global economy of intense competition must be considered to be __________. A. Temporary. B. Permanent. C. Frightening. D. A and B. E. B and C. A GT Fa
Porter’s Generic Strategies 255.
Which one of the following statements does NOT accurately describe an aspect of Michael Porter’s generic strategies model? A. Market scope measures the breadth or narrowness of the target market. B. Source of competitive advantage reflects whether the advantage is sought through lower price or product uniqueness. C. The market scope and source of competitive advantage variables combine to generate four generic strategies that a organization can pursue in seeking to gain a strategic advantage D. Porter’s generic strategies include stars, cash cows, dogs, and question marks. E. Porter’s generic strategies focus on business-level strategy formulation. D GT Fa
Chapter 9: Strategic Management
357
256.
Michael Porter’s generic strategies model identifies four fundamental strategies. Which of the following correctly describes these strategies? A. Introduction, growth, maturity, and decline. B. Stars, cash cows, dogs, and question marks. C. Growth, differentiation, incremental, and emergent. D. Differentiation, cost leadership, focused differentiation, and focused cost leadership. E. Growth, retrenchment, vertical integration, and stability. D GT Fa
257.
Businesses pursuing a __________ seek a competitive advantage by directing the organization’s resources and attention toward distinguishing its products from those of the competition. A. Differentiation strategy. B. Cost leadership strategy. C. Focused differentiation strategy. D. Focused cost leadership strategy. E. Emergent strategy. A KT Fa
258.
Businesses pursuing a __________ seek a competitive advantage by directing the organization’s resources and attention toward minimizing costs to operate more efficiently than the competition. A. Differentiation strategy. B. Cost leadership strategy. C. Focused differentiation strategy. D. Focused cost leadership strategy. E. Emergent strategy. B KT Fa
259.
Businesses pursuing a __________ seek a competitive advantage by concentrating on one special market segment and trying to offer customers in that segment a unique product. A. Differentiation strategy. B. Cost leadership strategy. C. Focused differentiation strategy. D. Focused cost leadership strategy. E. Emergent strategy. C KT Fa
260.
Businesses pursuing a __________ seek a competitive advantage by concentrating on one special market segment and trying to be the lowest cost provider in that segment. A. Differentiation strategy. B. Cost leadership strategy. C. Focused differentiation strategy. D. Focused cost leadership strategy. E. Emergent strategy. D KT Fa
358
Schermerhorn & Wright: Management
261.
The objective of the __________ is to attract customers who become loyal to the organization’s products and lose interest in those of competitors. A. Cash cow. B. Differentiation strategy. C. Cost leadership strategy. D. Focus strategy. E. Star strategy. B KT Fa
262.
The objective of the __________ is to continuously improve the operating efficiencies of production, distribution, and other organizational systems. A. Emergent strategy B. Differentiation strategy. C. Cost leadership strategy. D. Focus strategy. E. Star strategy. C KT Fa
263.
The objective of the __________ is to focus organizational resources and expertise on a particular customer group, geographical region, or product or service line. A. Cash cow. B. Differentiation strategy. C. Cost leadership strategy. D. Focus strategy. E. Incremental strategy. D KT Fa
Portfolio Planning 264.
The __________ approach seeks the best mix of investments of scarce resources among competing business opportunities. A. Emergent strategies. B. Portfolio planning. C. Adaptive strategies D. Prospector approach. E. Differentiation. B KT Fa
265.
The BCG portfolio planning model uses an analysis of __________ and __________ to analyze business opportunities. A. Investment alternatives … rates of return. B. Product alternatives … forecasted profitability. C. Market growth rate … costs of operation. D. Market growth rate … market share. E. Market share … customer needs. D GT Fa
Chapter 9: Strategic Management
359
266.
In the BCG matrix, a “star” refers to an organization or subunit that has __________. A. A low market share in a high-growth market. B. A low market share in a low-growth market. C. A moderate market share in a moderate-growth market. D. A high market share in a high-growth market. E. A high market share in a low-growth market. D GT Fa
267.
A “cash cow,” as the term is used by the Boston Consulting Group, refers to an organization or subunit that has __________. A. A low market share in a high-growth market. B. A low market share in a low-growth market. C. A moderate market share in a moderate-growth market. D. A high market share in a high-growth market. E. A high market share in a low-growth market. E GT Fa
268.
According to the BCG matrix, a “question mark” refers to an organization or subunit that has __________. A. A low market share in a high-growth market. B. A low market share in a low-growth market. C. A moderate market share in a moderate-growth market. D. A high market share in a high-growth market. E. A high market share in a low-growth market. A GT Fa
269.
In the terminology of the Boston Consulting Group, a “dog” refers to an organization or subunit that has __________. A. A low market share in a high-growth market. B. A low market share in a low-growth market. C. A moderate market share in a moderate-growth market. D. A high market share in a high-growth market. E. A high market share in a low-growth market. B GT Fa
270.
Which of the following accurately describes the preferred strategy for the Boston Consulting Group’s business opportunities? A. The preferred strategy for stars is growth through resource investment. B. The preferred strategy for dogs is retrenchment by divestiture. C. The preferred strategy for promising questions marks is growth, while the preferred strategy for less promising question marks is restructuring or divestiture. D. All of the above. E. None of the above. D GT Ap
360
Schermerhorn & Wright: Management
Adaptive Strategies 271.
The Miles and Snow’s adaptive model emphasizes that organizations should pursue strategies that __________. A. Consider the organization’s market share and growth position. B. Are congruent with the nature of their external environments. C. Minimize the strengths and weaknesses of the organization. D. Allow an organization to make decisions incrementally. E. Give the organization cost leadership or product/service differentiation. B GT Fa
272.
An organization is following a(n) __________ strategy when it pursues innovation and new opportunities in the face of risk and with prospects for growth. A. Prospector. B. Analyzer. C. Reactor. D. Defender. E. Turnaround. A GT Fa
273.
An organization is following a(n) __________ strategy when it tries to protect current market share by emphasizing existing products and without seeking growth. A. Prospector. B. Analyzer. C. Focus. D. Defender. E. Turnaround. D GT Fa
274.
An organization is following a(n) __________ strategy when it seeks to maintain stability of a core business while exploring selective opportunities for innovation and change. A. Prospector. B. Analyzer. C. Reactor. D. Defender. E. Turnaround. B GT Fa
275.
An organization is following a(n) __________ strategy when it simply responds to competitive pressures in order to survive. A. Prospector. B. Analyzer. C. Focus. D. Defender. E. Reactor. E GT Fa
Chapter 9: Strategic Management
361
Incrementalism and Emergent Strategy 276.
__________ is the view that strategies take shape, change, and develop over time as modest adjustments to past patterns. A. Portfolio management. B. Incrementalism. C. The BCG matrix. D. Strategic planning. E. Suboptimization. B GT Fa
277.
Which of the following statements regarding incrementalism is/are accurate? A. Modest and incremental changes in strategy occur as managers learn from experience and make adjustments. B. Managers act within complex interpersonal networks and in hectic, fast-paced work settings. C. Effective managers must have the capacity to stay focused on long-term objectives while still remaining flexible enough to master short-run problems and opportunities as they occur. D. B and C. E. A, B, and C. E GT Ap
278.
__________ develop(s) progressively over time as managers make “streams” of decisions while they learn from and respond to work situations. A. Strategic opportunism. B. Incrementalism. C. Emergent strategies. D. Incremental strategies. E. The managerial learning curve. C KT Fa
STRATEGY IMPLEMENTATION (STUDY QUESTION 5) 279.
Current issues in the proper implementation of strategy include __________. A. Excellence in all management systems and practices. B. The importance of strategic leadership. C. The responsibilities of corporate governance. D. All of the above. E. None of the above. D GT Fa
362
Schermerhorn & Wright: Management
Management Practices and Systems 280.
Successful strategies share several essential features. Which of the following is NOT one of these essential features? A. Every successful strategy requires the entire organization and all of its resources to be mobilized in support of the strategies. B. Every successful strategy requires supporting structures, well-designed tasks and workflows, and the right people. C. Every successful strategy requires leaders who can energize people and build performance commitments. D. Every successful strategy requires leaders who can use teams and teamwork to the best advantage. E. Every successful strategy requires leaders who are willing to take extraordinary risks on behalf of the organization. E GT Fa
281.
Paying inadequate attention to the analysis of mission and purpose, core values and corporate culture, organizational strengths and weaknesses, and environmental opportunities and threats constitutes a strategic planning pitfall known as __________. A. Failures of substance. B. Failures of process. C. Failures of management foresight. D. Failures of corporate governance. E. Failures of strategic leadership. A GT Fa
282.
Poor handling of the ways in which various aspects of strategic planning are accomplished constitute a strategic planning pitfall known as __________. A. Failures of substance. B. Failures of process. C. Failures of management foresight. D. Failures of corporate governance. E. Failures of strategic leadership. B GT Fa
283.
Failures of process in strategic planning include __________. A. The lack of participation error. B. Inadequate resource allocation. C. Goal displacement. D. Alternatives A and B. E. Alternatives A and C. E GT Fa
Chapter 9: Strategic Management
363
284.
__________ is the failure to include key persons in the strategic planning effort. A. Corporate governance. B. Goal displacement. C. The lack of participation error. D. The lack of substance error. E. Immature organizational politics. C GT Fa
285.
The tendency to get so bogged down in details that the planning process becomes an end in itself instead of a means to an end is known as __________. A. Corporate governance. B. Goal displacement. C. Lack of participation error. D. Lack of substance error. E. Immature organizational politics. B GT Fa
Corporate Governance 286.
__________ is the system of control and performance monitoring of top management that is maintained by boards of directors and other major stakeholder representatives. A. Corporate governance. B. Stakeholder oversight. C. Top management oversight. D. Corporate performance auditing. E. Corporate performance review. A KT Fa
287.
__________ are formally charged with ensuring that an organization operates in the best interests of its owners and/or the representative public. A. Strategic leaders. B. Boards of directors. C. Executive teams. D. Investment advisers. E. Management committees. B GT Fa
288.
In corporate governance, controversies often arise over the roles of __________ and __________. A. Managers … non-management employees. B. Internal customers … external customers. C. Inside directors … outside directors. D. Customers … suppliers. E. Stakeholders … stockholders. C GT Fa
364 289.
Schermerhorn & Wright: Management Which of the following statements about corporate governance is incorrect? A. Boards may be too compliant in endorsing or confirming the strategic initiatives of top management. B. Board members are increasingly expected to exercise control and take active roles in ensuring that strategic management of an enterprise is successful. C. Outside directors may be selected because they are friends of top management or at least are sympathetic to top management. D. Top management probably feels more performance accountability to boards of directors and other stakeholders in today’s environment. E. Top management performance accountability to a board of directors relates only to financial concerns. E GT Fa
Strategic Leadership 290.
__________ refers to a leader’s capability to inspire people to successfully engage in a process of continuous change, refinement, and implementation of organizational strategies. A. Change leadership. B. Strategic leadership. C. Visionary leadership. D. Transactional leadership. E. Transformational leadership. B KT Fa
291.
Which of the following is NOT one of the critical tasks of strategic leadership? A. Being a guardian of tradeoffs by ensuring that the organization’s resources are allocated in ways consistent with the strategy. B. Creating a sense of urgency by not allowing the organization and its members to grow slow and complacent. C. Ensuring that top management understands the strategy so that they can direct their subordinates in carrying it out. D. Being a teacher by conveying the strategy and making it a cause. E. Being a great communicator to ensure that everyone understands the strategy and how it makes their organization different from others. C GT Fa
292.
Because the challenges faced by contemporary organizations are so complex, strategic management is increasingly viewed as __________. A. A professional planner’s responsibility, B. A team leadership responsibility. C. The chief executive officer’s only responsibility. D. The board chairperson’s responsibility. E. Every middle manager’s most important responsibility. B GT Fa
Chapter 9: Strategic Management
365
Essay Questions 293.
Explain how competitive advantage, strategy, and the strategic management process are interrelated. Suggested Answer: Competitive advantage refers to an organization operating with an attribute or combination of attributes that allows it to outperform its rivals. Sustainable competitive advantage is one that is difficult for competitors to imitate. A strategy is a comprehensive action plan that identifies long-term direction and guides resource utilization to accomplish an organization’s mission and objectives with sustainable competitive advantage. Strategic management is the process of formulating and implementing strategies that create competitive advantage and advance an organization’s mission and objectives.
294.
What is SWOT analysis? Discuss the types of issues and questions that should be addressed when conducting a SWOT analysis. Suggested Answer: Two critical steps in the strategic management process are analysis of the organization and analysis of the environment. These two steps may be approached with a technique known as SWOT analysis ⎯ that is, an analysis of internal organizational Strengths and Weaknesses, and an analysis of external environmental Opportunities, and Threats. Specific types of questions are typically asked in a SWOT analysis. For an internal assessment of the organization, these questions are: • •
What are our strengths? Manufacturing efficiency? Skilled workforce? Good market share? Strong financing? Superior reputation? What are our weaknesses? Outdated facilities? Inadequate research and development? Obsolete technologies? Weak management? Past planning failures?
The questions typically asked in analyzing the industry and environment are: • •
295.
What are our opportunities? Possible new markets? Strong economy? Weak market rivals? Emerging technologies? Growth of existing market? What are our threats? New competitors? Shortage of resources? Changing market tastes? New regulations? Substitute products?
Briefly describe the two key factors that Michael Porter uses as the basis for formulating strategy. Explain how these factors combine to create different generic strategies. Suggested Answer: According to Michael Porter, business-level strategic decisions are driven by two factors: market scope (i.e., the broadness or narrowness of the target market) and source of competitive advantage (i.e., whether competitive advantage is sought through lower price or through product or market uniqueness). Porter’s generic strategies framework combines these two factors to
366
Schermerhorn & Wright: Management generate the following four generic strategies that an organization can pursue in seeking to gain a strategic advantage. • • • •
296.
Differentiation strategy –– where the organization’s resources and attention are directed toward distinguishing its products from those of the competition. Cost leadership strategy –– where the organization’s resources and attention are directed toward minimizing costs to operate more efficiently than the competition. Focused differentiation strategy –– where the organization concentrates on one special market segment and tries to offer customers in that segment a unique product. Focused cost leadership strategy –– where the organization concentrates on one special market segment and tries to be the lowest cost provider in that segment.
What is the BCG matrix? What are the recommended strategies for dealing with stars, question marks, dogs, and cash cows? Suggested Answer: The BCG matrix ties strategy formulation to an analysis of business opportunities based on market growth rate (low versus high growth rate) and market share (low versus high share). The BCG matrix has four combinations of business conditions, each of which has a particular strategic implication. These combinations are stars, question marks, cash cows, and dogs. Stars are high market share/high growth businesses. They produce large profits through a dominant competitive position in a growing market. The preferred strategy is growth. Question marks are low market share/high growth businesses. They do not produce much profit but do compete in rapidly growing markets. The preferred strategies are growth for promising question marks and retrenchment for the other question marks. Cash cows are high market share/low growth businesses. They produce large profits and a strong cash flow but offer little growth opportunity. The preferred strategy is stability or modest growth, using the cash flow to fund investment in stars or promising question marks. Dogs are low market share/low growth businesses. They do not produce much profit and show little potential for future improvement. The preferred strategy is retrenchment by divestiture.
297.
Explain how strategic leadership can be carried out in an organization Suggested Answer: Effective strategic management requires strategic leadership –– the capability to inspire people to successfully engage in a process of continuous change, performance enhancement, and implementation of organizational strategies. Strategic leadership is carried out through the following critical tasks: • • • • •
Being a guardian of tradeoffs –– ensuring that the organization’s resources are allocated in ways consistent with the strategy. Creating a sense of urgency –– not allowing the organization and its members to grow slow and complacent. Ensuring that everyone understands the strategy –– unless strategies are understood, the daily tasks and contributions of people lose context and purpose. Being a teacher –– it is the leader’s job to teach the strategy and make it a cause. Being a great communicator –– everyone must understand the strategy and how it makes their organization different from others.
Chapter 10:
ORGANIZING True/False Questions CHAPTER INTRODUCTION 1.
In today’s business environment, some organizations follow traditional structural patterns whereas other organizations follow nontraditional structural patterns that emphasize teams and networks. T GT Ap
2.
Organizations that consistently deliver above-average returns and outperform their competitors have structures that both empower and support employees and are responsive to client or customer needs. T GT Ap
3.
Organizations that consistently deliver above-average returns and outperform their competitors will remain flexible in dealing with a dynamic environment and will give continual attention to quality improvements. T GT Ap
ORGANIZING AS A MANAGEMENT FUNCTION (STUDY QUESTION 1) 4.
Organizing is the process of arranging people and other resources to work together to accomplish a common goal. T KT Fa
5.
When a manager divides work up into manageable components, arranges resources, and coordinates results to achieve a common purpose, the manager is practicing strategic planning. F GT Fa
6.
Given a clear mission, core values, objectives and strategy, organizing begins the process of strategy implementation by clarifying jobs and working relationships. T GT Fa
7.
In the management process of organizing, the strategic leadership challenge is to choose the best organizational form to fit the strategy and other situational demands. T GT Fa
367
368
Schermerhorn & Wright: Management
What Is Organization Structure? 8.
Organization structure is the system of tasks, workflows, reporting relationships, and communications channels that link together the work of diverse individuals and groups. T KT Fa
9.
Any organization structure should allocate task assignments through a division of labour and provide for the coordination of performance results. T GT Fa
10.
The purpose of an organization structure is to divide up and coordinate resources and tasks in order to achieve performance success. T GT Fa
11.
The purpose of an organization structure is to design titles for different workers and to assign daily work tasks to them. F GT Fa
Formal Structures 12.
An organization chart is a diagram that shows reporting relationships and the formal arrangement of work positions within an organization. T KT Fa
13.
An organization chart shows positions and job titles, lines of authority, and formal communication channels for a company. T GT Fa
14.
Informal decision-making coalitions are readily determined by examining an organization chart. F GT Ap
15.
The structure of an organization in its official state is called the organization’s formal structure. T KT Fa
16.
The formal structure of the organization represents the way the organization is intended to function in terms of division of work, supervisory relationships, communication channels, major subunits, and levels of management. T 256 GT Fa
Informal Structures 17.
The informal structure is a “shadow’ organization made up of the unofficial, but often critical, working relationships between organizational members. T KT Fa
18.
Informal structure and formal structure are useful terms to distinguish between the way work actually gets done and the way it is mapped on the organization chart. T GT Ap
Chapter 10: Organizing
369
19.
Informal structures can benefit organizations by helping people accomplish their work and by allowing people to have access to interpersonal networks that provide emotional support and satisfy social needs. T GT Fa
20.
Informal structures always work against the achievement of high productivity. F GT Fa
21.
The process of learning that occurs as people work and interact together throughout the workday is called casual learning. F GT Fa
22.
Informal structures can breed resistance to change, be susceptible to rumors, overcome gaps in formal structures, or satisfy social needs. T GT Fa
23.
Informal structures always serve the best interests of the organization. F GT Fa
TRADITIONAL ORGANIZATION STRUCTURES (STUDY QUESTION 2) 24.
Departmentalization is the process of grouping work positions into formal teams or departments and then linking them together in a coordinated fashion with the larger organization. T KT Fa
25.
Three common types of traditional organizational structures are functional, divisional, and matrix. T GT Fa
Functional Structures 26.
A functional structure is a form of organization in which people who have similar skills and who perform similar tasks are grouped together in work units. T KT Fa
27.
When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a divisional structure. F GT Ap
28.
Members of functional departments share technical expertise, interests, and responsibilities. T GT Fa
29.
Advantages of functional structures include the support of in-depth training and reduced accountability for total product or service delivery. F GT Fa
370
Schermerhorn & Wright: Management
30.
Advantages of functional structures include permitting employees to have job assignments consistent with their technical training and providing them with clear career paths. T GT Fa
31.
A potential disadvantage of functional structures concerns difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation T GT Fa
32.
In functional structures, the sense of cooperation and common purpose may break down and people may take a narrow view of performance objectives. T GT Fa
33.
The horizontal silos problem refers to the lack of communication, coordination, and collabourative problem solving across functions. F KT Fa
34.
The functional chimneys problem can slow decision making, diminish cooperation and commitment to a common purpose, and interfere with coordination across functions. T GT Fa
Divisional Structures 35.
A divisional structure groups together people who work on the same product or process, serve similar customers, or work in the same geographic region. T KT Fa
36.
Included among the potential advantages of divisional structures are more flexibility in responding to environmental changes and clear points of responsibility for product or service delivery. T GT Fa
37.
Included among the potential advantages of divisional structures are having expertise focused on specific customers, products, or regions, as well as greater ease in changing size by adding or deleting divisions. T GT Fa
38.
Since resources and efforts are duplicated across divisions, potential disadvantages of a divisional structure include reduced economies of scale and increased costs. T GT Fa
39.
Divisional structures can create healthy rivalries as divisions compete for available resources. F GT Fa
40.
Product structures group together jobs and activities that serve the same customers or clients. F KT Fa
41.
Product structures clearly identify costs, profits, problems, and successes in a market area with a central point of accountability. T GT Fa
Chapter 10: Organizing
371
42.
Geographical structures group together jobs and activities being performed in the same location or region. T KT Fa
43.
Product structures are typically used when there is a need to differentiate products or services in various locations, such as in international operations where there is a need to focus on the requirements of particular cultures and regions of the world. F GT Fa
44.
Customer structures group together jobs and activities dealing with a single product or service. F KT Fa
45.
Customer structures are particularly appealing because they can best serve the special needs of different customer groups. T GT Fa
46.
A work process is a group of tasks related to one another that collectively creates something of value to a customer. T GT Fa
47.
Process structures group together jobs and activities that are part of the same processes. T KT Fa
Matrix Structures 48.
The matrix structure uses permanent cross-functional teams to blend the technical strengths of functional structures with the integrating capabilities of divisional structures. T KT Fa
49.
The matrix structure makes use of permanent cross-functional teams to integrate functional expertise in support of a clear divisional focus on a product, project, or program. T GT Fa
50.
Workers in a matrix structure belong to at least two formal groups at the same time. These two groups are a functional group and a product, project, or program group. T GT Fa
51.
The matrix structure allows for better interfunctional cooperation in operations and problem solving, and makes it easier to add, remove, or change operations to meet changing demands. T GT Fa
52.
If an organization is concerned about frequently adding and deleting new products or services and also wants to make sure that customers or clients always have a program manager available to respond to questions and concerns, the matrix structural form is a good choice. T GT Ap
53.
Members of matrix organizations experience task confusion and encounter power struggles because of reporting to both a “project team boss” and a “functional boss.” T GT Fa
372
Schermerhorn & Wright: Management
54.
A potential disadvantage of the matrix structure is that problem solving is forced down the hierarchy to where the best information is available. F GT Fa
55.
The increased costs associated with adding team leaders is a potential disadvantage of the matrix structure. T GT Fa
DIRECTIONS IN ORGANIZATION STRUCTURES (STUDY QUESTION 3) 56.
The global economy and hypercompetition are easing the pressures on organization structures. F GT Fa
57.
Structural innovation is incidental and tangential to meeting the demands of complex and changeable environments. F GT Fa
58.
Managers need to design organizational structures to respond to performance demands for more speed to market, greater customer orientation, constant productivity improvements, and better technology utilization. T GT Fa
59.
To capitalize on the opportunities afforded by horizontal structures, managers should: focus the organization around processes, not functions; put people in charge of core processes; empower people to make decisions critical to performance; and utilize information technology. T MN Fa
60.
To mobilize the opportunities of horizontal structures, managers should: focus the organization around functions, not processes; increase hierarchy and decrease the use of teams; and deemphasize multiskilling and multiple competencies. F MN Fa
Team Structures 61.
Team structures improve communication and decision making as well as help to break down barriers between operating departments. T GT Fa
62.
A cross-functional team brings together members from different areas of work responsibility. T KT Fa
63.
A project team is set up for a particular task or project and disbands once it is completed. T KT Fa
64.
Boosting the morale of members, gaining increased knowledge of different work responsibilities, breaking down barriers between operating departments, and improving the quality and speed of decisions are potential advantages of using a team structure T GT Fa
Chapter 10: Organizing
373
65.
The potential disadvantages of team structures include conflicting loyalties among members regarding both team and functional assignments and the excessive time spent in meetings. T GT Fa
66.
Team members’ effective utilization of the time they spend together is independent of the quality of their interpersonal relations, group dynamics, and team management. F GT Fa
67.
In addressing the potential disadvantages of team structures, managers should manage time effectively but need not resolve conflicting loyalties between employees’ team and functional assignments. F GT Ap
68.
In addressing the potential disadvantages of team structures, managers should manage time effectively but need not promote effective interpersonal relations, group dynamics, and team management. F GT Ap
Network Structures 69.
Network structures consist of a central business core that that is linked through networks of relationships with outside contractors and suppliers of essential services. T KT Fa
70.
Network structures use communications and information technology to support a shifting variety of strategic alliances and strategic contracts that sustain operations. T GT Fa
71.
Organizations that are set up with a central core that is linked with outside contractors and suppliers of essential business services are called network structures. T KT Fa
72.
Network organizations own only the support functions and outsource core functions. F GT Fa
73.
Boundaryless sourcing refers to the contracting of business functions to outside suppliers. F GT Fa
74.
The advantages of network structures include (a) staying cost competitive through reduced overhead and increased operating efficiency, and (b) operating with fewer full-time employees and less complex internal systems. T GT Fa
75.
The potential disadvantages of the network structure are due primarily to new management responsibilities. T GT Fa
374
Schermerhorn & Wright: Management
76.
The potential disadvantages of the network structure are due primarily to the demands of flexibility in responding to changing conditions, having fewer full-time employees to help build the supervisor’s managerial empire, and the need to operate across great distances. F GT Fa
77.
Potential disadvantages of network structures include exercising effective control and coordination among different parts of a complex network T GT Fa
78.
In a network structure, the entire system suffers if one part of the network breaks down or fails to deliver. T GT Fa
79.
The “seven deadly sins of outsourcing” include: outsourcing activities that are part of the core; outsourcing to untrustworthy vendors; not having good contracts with the vendor; overlooking impact on existing employees; not maintaining oversight of vendors; overlooking hidden costs of managing contracts; and failing to recognize the need to change vendors or cease outsourcing. T MN Fa
Boundaryless Organizations 80.
Boundaryless organizations eliminate internal boundaries among parts and external boundaries linking with the external environment. T KT Fa
81.
Boundaryless organizations are those in which teamwork and intense communication take the place of formal lines of authority. T GT Fa
82.
Boundaryless organizations can be viewed as a combination of team and network structures, with the addition of “temporariness.” T GT Ap
83.
Key requirements for a boundaryless organization are the absence of hierarchy, empowerment of team members, technology utilization, and acceptance of impermanence. T GT Ap
84.
Due to the absence of structural barriers, boundaryless organizations have few communication and coordination problems. F GT Ap
85.
Boundaryless organizations encourage creativity, quality, timeliness, efficiency, and flexibility. T 267 GT Ap
86.
A virtual organization is a special form of a boundaryless organization. T GT Fa
87.
A virtual organization operates in a shifting network of external strategic alliances that are engaged as needed, and typically are supported by extensive information technology utilization. T KT Fa
Chapter 10: Organizing
375
ORGANIZING TRENDS AND PRACTICES (STUDY QUESTION 4) 88.
The “employee empowerment structural adaptation” is the concept of putting customers on the top, served by workers in the middle, who in turn are supported by managers at the bottom. F KT Fa
89.
Organizing trends in the modern workplace share the common theme of making the adjustments needed to streamline operations for cost efficiency, higher performance, and increased participation by workers. T GT Ap
90.
Organizing practices are in a state of change as new structures are developed to respond to increasingly competitive environments. T GT Fa
91.
Included among contemporary workplace organizing trends are shorter chains of command, less unity of command, wider spans of control, more delegation and empowerment, decentralization with centralization, and reduced use of staff. T GT Fa
Shorter Chains of Command 92.
The chain of command is the line of authority that vertically links all persons with successively higher levels of management. T KT Fa
93.
The principle stating that there should be a clear and unbroken chain of command linking each person in the organization to successively higher levels of authority is the scalar principle. T GT Fa
94.
When organizations grow in size, adding levels of management and thereby lengthening the chain of command, they tend to get taller. T GT Fa
95.
An organization typically gains additional competitive advantage when the number of levels in the chain of command is increased. F GT Fa
96.
When the number of levels in the chain of command is increased, overhead costs increase and decision making can be slowed greatly. T GT Fa
97.
A contemporary trend with regard to the chain of command is for organizations to streamline by cutting unnecessary levels of management. T GT Ap
376
Schermerhorn & Wright: Management
Less Unity of Command 98.
According to the unity-of-command principle, each person in an organization should report to one and only one supervisor. T GT Fa
99.
The span of control principle addresses the problem of people having “too many bosses.” F GT Ap
100.
The divisional structure, by design, violates the unity-of-command principle. F GT Fa
101.
The unity-of-command principle is being increasingly violated as more contemporary organizations use cross-functional teams, task forces, and horizontal structures in organizing the workplace. T GT Ap
Wider Spans of Control 102.
Span of control refers to the number of subordinates reporting directly to a manager. T KT Fa
103.
An organization with narrow spans of control will have fewer managers and more subordinates per manager, whereas an organization with wide spans of control will have more managers and fewer subordinates per manager F GT Ap
104.
Narrow spans of control create an organization that is more efficient and flexible, whereas wider spans of control usually result in additional management overhead costs. F GT Fa
105.
Recent structural moves in American organizations have resulted in wider spans of control in organizations. T GT Ap
More Delegation and Empowerment 106.
Delegation is the process of entrusting work to others in the organization by giving them the right to make decisions and take action. T KT Fa
107.
Responsibility, authority, and accountability are the foundations of vertical coordination through delegation. T GT Ap
108.
Accountability is an expectation for the other person to perform assigned tasks. F GT Ap
109.
Authority is the right to act in ways to carry out the assigned tasks. T GT Ap
Chapter 10: Organizing
377
110.
Responsibility is the requirement to answer to a supervisor for performance results. F GT Ap
111.
Empowerment is an essential part of delegation. T GT Ap
112.
The authority-and-responsibility principle states: “authority should equal responsibility when work is delegated from a supervisor to a subordinate.” T GT Fa
113.
Failure to delegate overloads the manager with work that could be done by others, and may result from a manager’s lack of trust in others or his/her inflexibility regarding how things should be done. T GT Ap
114.
Effective delegation leads to empowerment of workers and can increase employees’ job satisfaction and work performance. T GT Ap
115.
Managers in progressive organizations are delegating more and finding more ways to empower people at all levels. T GT Ap
116.
Effective delegation includes agreeing on a performance timetable, giving performance feedback, recognizing and reinforcing progress, and helping when things go wrong. T MN Fa
117.
Good rules for effective delegation include not forgetting your own accountability for performance results, showing trust in the other person, giving authority, and providing performance support. T MN Fa
Decentralization with Centralization 118.
Centralized organizations delegate decision making throughout all levels of management, and decentralized organizations concentrate decision making at the top levels of management. F KT Fa
119.
When decision-making authority is dispersed by extensive delegation throughout all levels of management, the organization is decentralized. T KT Fa
120.
An organization that operates in a decentralized fashion will allow lower-level persons to participate in decision making T KT Fa
121.
If decision making is centralized, control must be centralized as well. If decision making is decentralized, control must be decentralized as well. F GT Fa
378 122.
Schermerhorn & Wright: Management With respect to centralization and decentralization, the current trend is for organizations to centralize decision making and decentralize control. F GT Ap
Reduced Use of Staff 123.
People who perform a technical service or provide special problem-solving expertise for other parts of the organization are called personal staff. F KT Fa
124.
An employee who is in an “assistant-to” position with the purpose of providing special support to a higher-level manager is considered to be specialized staff F KT Fa
125.
Line personnel provide expert advice and guidance to staff personnel. F GT Fa
126.
Advisory authority is defined as the authority of staff personnel to suggest but not dictate actions to line personnel. T GT Fa
127.
When functional authority is used, staff personnel require others to do as requested within the boundaries of staff expertise. T GT Fa
128.
Because of cost considerations, cutting back on staff is a common first choice in downsizing and other turnaround efforts. T GT Ap
129.
There is one best way to divide work between line and staff responsibilities. F GT Ap
130.
Staff can grow to the point where it costs more in administrative overhead than the staff is worth. T GT Ap
131.
The current trend in the use of staff is to reduce the size of staff in order to increase operating efficiency. T GT Ap
Chapter 10: Organizing
379
Multiple Choice Questions CHAPTER INTRODUCTION 132.
Which of the following statements accurately describe the use of organization structures in the contemporary business environment? A. Some organizations follow traditional structural patterns. B. Some organizations follow nontraditional structural patterns that emphasize teams and networks. C. Organizations in high tech industries try new organizational structures whereas companies in both light and heavy manufacturing stick with traditional structures. D. A and B. E. A and C. D GT Ap
133.
Organizations that consistently deliver above-average returns and outperform their competitors have structures that reflect all of the following characteristics EXCEPT: A. They emphasize empowerment and support employees. B. They are responsive to client or customer needs. C. They stay flexible in dealing with a dynamic environment. D. They emulate their competition. E. They give continual attention to quality improvements. D GT Ap
ORGANIZING AS A MANAGEMENT FUNCTION (STUDY QUESTION 1) 134.
__________ is the process of arranging people and other resources to work together to accomplish a goal. A. Planning. B. Organizing C. Controlling. D. Leading. E. Strategizing. B KT Fa
135.
When a manager divides work up into manageable components, arranges resources, and coordinates results to achieve a common purpose, the manager is practicing __________. A. Leadership. B. Organizing. C. Strategic planning. D. Forecasting. E. Setting objectives. B GT Fa
380
Schermerhorn & Wright: Management
136.
Given a clear mission, core values, objectives and strategy, __________ begins the process of implementation by clarifying jobs and working relationships. A. Planning. B. Controlling. C. Organizing. D. Coordinating. E. Leading. C GT Fa
137.
Which management function clarifies who is responsible for what, identifies the person in charge, and determines how different people relate to and work with one another? A. Planning. B. Coordinating. C. Controlling. D. Organizing. E. Leading. D GT Fa
138.
In the management process of organizing, the strategic leadership challenge is to __________. A. Choose the best organizational form to fit the strategy and other situational demands. B. Choose strategy to best fit the established organizational form. C. Choose the strategy and organizational form that are easiest to implement. D. Choose the organizational form that adapts the strategy to the demands of the situation. E. Choose the organizational form that employees will like the best. A GT Fa
What Is Organization Structure? 139.
Organization structure refers to the system of __________ that link together the work of diverse individuals and groups. A. Tasks and workflows. B. Reporting relationships. C. Communication channels. D. All of the above. E. None of the above. D KT Fa
140.
__________ is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups. A. Job design. B. Management. C. Organization structure. D. Strategy. E. A work plan. C KT Fa
Chapter 10: Organizing
381
141.
Any organization structure should __________ and __________.
142.
Which of the following is the most accurate description regarding the purpose of an organization structure? A. To divide up and coordinate resources and tasks to be done for performance success. B. To identify relationships between suppliers and company buyers. C. To design titles for different types of workers. D. To allocate management authority to department heads. E. To assign daily work tasks to workers. A GT Fa
A. Allocate task assignments through a division of labour provide for the coordination of performance results. B. Allocate task assignments through a division of labour provide for the creation of a horizontal organization. C. Allocate organizational resources to important departments provide for the oversight of less important departments. D. Assign good leaders to the effective work teams assign poorer leaders to marginally effective work teams. E. Assign organizational objectives to divisions, departments, and work teams provide for the coordination of performance results. A GT Fa
Formal Structures 143.
__________ is a diagram that shows reporting relationships and the formal arrangement of work positions within an organization. A. A flow chart. B. A PERT diagram. C. An organization chart. D. An input/output diagram. E. A structural diagram. C KT Fa
144.
Positions and job titles, lines of authority, and formal communication channels are often demonstrated for a company by drawing a special diagram. This diagram is called __________. A. A flow chart. B. A PERT diagram. C. An organization chart. D. An input/output diagram. E. A structural diagram. C GT Fa
382
Schermerhorn & Wright: Management
145.
Which of the following pieces of information cannot be determined from an organization chart? A. Formal communication channels. B. Type of work performed. C. Division of work. D. Levels of management. E. Informal decision-making coalitions. E GT Ap
146.
The structure of an organization in its official state is called the organization’s _________. A. Informal structure. B. Formal structure. C. Hierarchy or authority. D. Levels of management. E. Channel outline. B KT Fa
147.
The __________ of the organization represents the way the organization is intended to function in terms of division of work, supervisory relationships, communication channels, major subunits, and levels of management. A. Informal structure. B. Hierarchy or authority. C. Management chart. D. Channel outline. E. Formal structure. E GT Fa
Informal Structures 148.
The __________ is a “shadow’ organization made up of the unofficial, but often critical, working relationships between organizational members. A. Formal structure. B. Organizational chart. C. Informal structure. D. Adaptive organizational structure. E. Horizontal organizational structure. C KT Fa
149.
Informal structure and formal structure are useful terms to distinguish between __________. A. The way work actually gets done and the way it is mapped on the organization chart. B. Relationships in the shadow organization and relationships on the organization chart. C. Unofficial and official working relationships and communications patterns. D. All of the above. E. None of the above. D GT Ap
Chapter 10: Organizing
383
150.
Bill, a recent MBA graduate in the field of accounting, is the finance manager of ABC Company. Bill has a problem with a shadow organization in his division. One sensible first step in Bill’s management strategy might be __________. A. Meeting with his employees to let them know he is the boss. B. Promising bonuses only to those employees who agree with him and work with him. C. Seeking to understand and work with the shadow organization. D. Firing the people who are members of the shadow organization. E. Assuming his staff is trying to undermine him and act accordingly. C GT Ap
151.
The following five examples describe different types of relationships between employees in XYZ Company. Which set of relationships indicates the existence of a shadow organization? A. Department managers report directly to the vice presidents in charge of their division. B. An employee asks questions of an immediate supervisor, gets answers, and works closely with this person. C. In one department, superior-subordinate relationships are strained. Subordinates take direction from the manager of another department. D. Members of a word processing pool provide secretarial services for all divisions on a first come, first served basis. E. The company president delegates authority to division managers, division managers delegate authority to department managers, and department managers delegate authority to support staff. C GT Ap
152.
Which of these statements is NOT correct about informal structures? A. They can help organization members accomplish their work. B. They help people overcome limits to the formal structure. C. They allow people to support one another. D. They can help satisfy important social needs of people. E. They always work against the achievement of high productivity. E GT Fa
153.
The process of learning that occurs as people work and interact together throughout the workday is called __________ learning. A. Casual. B. Informal. C. Interactive. D. Formal. E. Social. B GT Fa
154.
Which statement about an informal structure in an organization is FALSE? A. An informal structure can breed resistance to change. B. Informal structures can be susceptible to rumors. C. Informal structures overcome gaps in formal structures. D. Informal structures satisfy social needs. E. Informal structures always serve the best interests of the organization. E GT Fa
384
Schermerhorn & Wright: Management
TRADITIONAL ORGANIZATION STRUCTURES (STUDY QUESTION 2) 155.
The process of making decisions on how to group work positions into formal teams that are linked together so they operate in a coordinated manner within the larger organization is called __________. A. Organizing. B. Restructuring. C. Departmentalization. D. Differentiation. E. Integration. C KT Fa
156.
The process of grouping work positions into formal teams and departments, and then linking them together within the organization is known as __________. A. Differentiation. B. Departmentalization. C. Structural team development. D. Organizing. E. Functional team management. B KT Fa
157.
Three common types of traditional organizational structures are __________. A. Centralized, decentralized, and integrated. B. Functional, horizontal, and vertical. C. Divisional, centralized, and line. D. Functional, divisional, and matrix. E. Matrix, staff, and functional. D GT Fa
Functional Structures 158.
A __________ groups together people who have similar skills and who perform similar tasks. A. Divisional structure. B. Informal structure. C. Matrix structure. D. Integrated structure. E. Functional structure. E KT Fa
159.
When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a __________ structure. A. Horizontal. B. Vertical. C. Functional. D. Divisional. E. Matrix. C GT Ap
Chapter 10: Organizing
385
160.
Which of the following statements accurately describes the nature of functional structures? A. Members of functional departments share technical expertise, interests, and responsibilities. B. Members of each function work within their respective areas of expertise. C. When each function does its jobs properly, the business should operate successfully. D. All of the above. E. None of the above. D GT Fa
161.
Which of the following is NOT an advantage of grouping people with similar interests and skills together in the same work unit? A. Supports in-depth training. B. Allows assignments to be consistent with technical training. C. Reduces accountability for total product or service delivery. D. Provides clear career paths. E. Produces economies of scale with efficient use of resources. C GT Fa
162.
Potential disadvantages of functional structures include all of the following EXCEPT: A. Difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation. B. Provides for clear career paths. C. Sense of cooperation and common purpose tends to break down. D. Narrow view of performance objectives. E. Too many decisions referred upward in the organizational hierarchy. B GT Fa
163.
The _________ problem refers to the lack of communication, coordination, and collabourative problem solving across functions. A. Horizontal silos. B. Vertical bug-a-boo. C. Functional chimneys. D. Divisional smokestack. E. Matrix identity. C KT Fa
164.
The functional chimneys problem can _________. A. Slow decision making. B. Diminish cooperation and commitment to a common purpose. C. Interfere with coordination across functions. D. All of the above. E. None of the above. D GT Fa
386
Schermerhorn & Wright: Management
Divisional Structures 165.
A(n) _________ groups together people who work on the same product or process, serve similar customers, or work in the same area or geographic region. A. Divisional structure. B. Informal structure. C. Matrix structure. D. Integration structure. E. Functional structure. A KT Fa
166.
All of the following are potential advantages of using a divisional structure EXCEPT: A. More flexibility in responding to environmental changes. B. Establishes clear points of responsibility for product or service delivery. C. Expertise is focused on specific customers, products, or regions. D. Duplication of resources and efforts across divisions. E. Greater ease in changing size by adding or deleting divisions. D GT Fa
167.
Which of the following is NOT a potential disadvantage of using a divisional structure for departmentalization? A. Increasing costs due to duplication of resources and efforts across divisions. B. Creating unhealthy rivalries as divisions compete for available resources. C. Enhancing the ability to respond to environmental change. D. Reducing economies of scale. E. Emphasizing divisional needs and goals to the detriment of organizational goals. C GT Fa
168.
A(n) __________ structure involves creating work units based on product, process, customer, or geographic territory. A. Functional. B. Divisional. C. Organic. D. Mechanistic. E. Matrix. B GT Fa
169.
__________structures group together jobs and activities dealing with a single product or service. A. Product structures. B. Geographical structures. C. Area structures. D. Customer structures E. Process structures. A KT Fa
Chapter 10: Organizing
387
170.
__________ clearly identify costs, profits, problems, and successes in a market area with a central point of accountability. A. Product structures. B. Geographical structures. C. Area structures. D. Customer structures E. Process structures. A GT Fa
171.
__________ structures group together jobs and activities that are being performed in the same location. A. Product. B. Market. C. Geographical. D. Customer. E. Process. C KT Fa
172.
__________ structures are typically used when there is a need to differentiate products or services in various locations, such as in different regions of a nation or in international operations where there is a need to focus on the requirements of particular cultures and regions of the world. A. Product. B. Market. C. Geographical. D. Customer. E. Process. C GT Fa
173.
Structures that group together jobs and activities that are serving the same customers or clients are called __________ structures. A. Product. B. Process. C. Matrix. D. Customer. E. Geographical. D KT Fa
174.
__________ are particularly appealing because they can best serve the special needs of different customer groups. A. Product structures. B. Process structures. C. Matrix structures. D. Customer structures. E. Geographical structures. D GT Fa
388
Schermerhorn & Wright: Management
175.
A __________ is a group of tasks related to one another that collectively creates something of value to a customer. A. Work team. B. Work process. C. Job. D. Work group. E. Manufacturing system. B GT Fa
176.
Structures that group together jobs and activities that are part of the same processes are called __________ structures. A. Geographical. B. Product. C. Matrix. D. Customer. E. Process. E KT Fa
Matrix Structures 177.
A matrix structure basically combines elements of __________and __________ structures. A. Horizontal vertical. B. Horizontal divisional. C. Functional vertical. D. Functional divisional. E. Vertical divisional. D KT Fa
178.
Which structural approach makes use of permanent cross-functional teams to integrate functional expertise in support of a clear divisional focus on a product, project, or program? A. Hybrid. B. Matrix. C. Divisional. D. Functional. E. Individual. B GT Fa
179.
Workers in a matrix structure belong to at least two formal groups at the same time. These two groups are a __________ group and a __________ group. A. Functional product, project, or program. B. Suplier . distributor C. Union product, project, or program. D. Functional nonfunctional. E. Functional total quality. A GT Fa
Chapter 10: Organizing
389
180.
Which one of the following is NOT an advantage of using the matrix structure? A. The matrix structure allows for better interfunctional cooperation in operations and problem solving. B. The matrix structure makes it easier to add, remove, or change operations to meet changing demands. C. The matrix structure improves performance accountability. D. The matrix structure minimizes overhead costs. E. The matrix structure improves strategic management since top managers are freed from unnecessary problem solving. D GT Fa
181.
If an organization is concerned about frequently adding and deleting new products or services and also wants to make sure that customers or clients always have a program manager available to respond to questions and concerns, the__________ structural form is a good choice. A. Horizontal. B. Vertical. C. Functional. D. Divisional. E. Matrix. E GT Ap
182.
Which of the following is NOT an advantage of matrix organizations? A. Promotes interfunctional cooperation B. Creates permanent cross-functional teams. C. More responsive to customer needs. D. Prevents power struggles from erupting. E. Managerial accountability is increased. D GT Fa
183.
Power struggles due to a “two-boss” system can cause problems within a __________ structure. A. Horizontal. B. Vertical. C. Functional. D. Divisional. E. Matrix. E GT Fa
184.
All the following are potential disadvantages of the matrix structure EXCEPT: A. Adding team leaders increases costs. B. “Groupitis”. C. Problem solving is forced down the hierarchy to where the best information is available. D. Power struggles between functional and program managers. E. Confusion of team members regarding task direction. C GT Fa
390
Schermerhorn & Wright: Management
DIRECTIONS IN ORGANIZATION STRUCTURES (STUDY QUESTION 3) 185.
Which of the following statements is/are correct regarding the forces influencing developments in organization structures? A. The global economy and hypercompetition are putting increasing pressures on organization structures. B. Structural innovation is an important part of meeting the demands of complex and changeable environments. C. Managers need to design organizational structures to respond to performance demands for more speed to market, greater customer orientation, constant productivity improvements, and better technology utilization. D. All of the above are correct statements regarding the forces influencing developments in organization structures. E. All of the above are incorrect statements regarding the forces influencing developments in organization structures. D GT Fa
186.
All but one of the following items are included among the guidelines for capitalizing on the opportunities afforded by horizontal structures. Which item is NOT one of these guidelines? A. Focus the organization around processes, not functions. B. Put people in charge of core processes. C. Increase hierarchy and decrease the use of teams. D. Empower people to make decisions critical to performance. E. Utilize information technology. C MN Fa
187.
All of the following are guidelines for mobilizing the opportunities of horizontal structures EXCEPT: A. Focus the organization around functions, not processes. B. Decrease hierarchy and increase the use of teams. C. Emphasize multiskilling and multiple competencies. D. Teach people how to work in partnership with others. E. Build a culture of openness, collabouration, and performance commitment. A MN Fa
Team Structures 188.
A __________ uses both permanent and temporary cross-functional teams to solve problems, complete special projects, and accomplish daily tasks. A. Geographical structure. B. Cross-functional structure. C. Team structure. D. Divisional structure. E. Matrix structure. C KT Fa
Chapter 10: Organizing
391
189.
A(n) __________ brings together members from different areas of work responsibility. A. Interdepartmental team. B. Cross-functional team. C. Self-managing team. D. Task team. E. Network team. B KT Fa
190.
A __________ is set up for a particular task or project and disbands once it is a completed. A. Matrix structure. B. Self-managing team. C. Project team. D. Process team. E. Network team. C KT Fa
191.
All except one of the following are potential advantages of using a team structure. Which one is NOT a potential advantage? A. Boosting the morale of members. B. Gaining increased knowledge of different work responsibilities. C. Breaking down barriers between operating departments. D. Spending a great deal of time in meetings. E. Improving the quality and speed of decisions. D GT Fa
192.
One of the disadvantages of using a team structure is __________. A. Conflicting loyalties of members. B. Speed and quality of decisions. C. Improved morale. D. Shared knowledge. E. Improving lateral relations. A GT Fa
193.
Which of the following are potential disadvantages of team structures? A. Conflicting loyalties among members regarding both team and functional assignments. B. Excessive time spent in meetings. C. Effectiveness of the time that team members spend together depends on the quality of interpersonal relations, group dynamics, and team management. D. Alternatives A and B are potential disadvantages of team structures. E. Alternatives A, B, and C are potential disadvantages of team structures. E GT Fa
194.
In addressing the potential disadvantages of team structures, managers should __________. A. Resolve conflicting loyalties between members’ team and functional assignments. B. Promote effective interpersonal relations, group dynamics, and team management. C. Manage time effectively. D. All of the above. E. None of the above. D GT Ap
392
Schermerhorn & Wright: Management
Network Structures 195.
Organizations that are set up with a central core that is linked with outside contractors and suppliers of essential business services are called __________ structures. A. Hybrid. B. Network. C. Geographic. D. Horizontal. E. Global. B KT Fa
196.
Network organizations own only the __________ and outsource __________. A. Information technology actual production work. B. Essential core functions the support functions. C. Support functions core functions. D. Intellectual property the manufacturing of products. E. Essential core functions all customer contacts. B GT Fa
197.
__________ refers to the contracting of business functions to outside suppliers. A. Insourcing B. Outsourcing. C. Rightsourcing. D. Resourcing. E. Boundaryless sourcing. C GT Fa
198.
All of the following are advantages of the network structure EXCEPT: A. Managers can seek ways to stay cost competitive through reduced overhead and increased operating efficiency. B. Managers can develop and maintain linkages for working with partners across great distances. C. Computerized networking capabilities facilitate coordination. D. A company can operate with fewer full-time employees and less complex internal systems. E. Managers are subjected to greater demands of responsibility. E GT Fa
199.
Potential advantages of network structures include which of the following? A. Companies can operate with fewer full-time employees and less complex internal systems. B. Companies can reduce overhead costs and increase operating efficiency. C. Companies can operate across great distances. D. All of the above are potential advantages of a network structure. E. None of the above is a potential advantage of a network structure. D GT Fa
Chapter 10: Organizing
393
200.
The potential disadvantages of the network structure are due primarily to the demands of __________. A. Being flexible in responding to changing conditions. B. Having fewer full-time employees to help supervisor’s managerial empire. C. Having new management responsibilities. D. Operating across great distance. E. Trying to reduce overhead through expanded relationships. C GT Fa
201.
Potential disadvantages of network structures include which of the following? A. If one part of the network breaks down or fails to deliver, the entire system suffers. B. It may be difficult to exercise effective control and coordination among different parts of a complex network. C. The more complex the business or mission, the more complicated the network. D. All of the above. E. None of the above. D GT Fa
202.
Which one of the following is not a potential disadvantage of network structures? A. Control and coordination problems may arise from network complexity. B. Permits operations across great distances. C. Potential loss of control over outsourced activities. D. The more complex the business or mission, the more complicated the network. E. Potential for lack of loyalty to develop among infrequently used contractors. B GT Fa
203.
There are “seven deadly sins of outsourcing.” Which of the following is NOT one of these deadly sins? A. Outsourcing activities that are part of the core. B. Not having good contracts with the vendor. C. Recognizing hidden costs of managing contracts. D. Failing to recognize the need to change vendors or cease outsourcing. E. Overlooking impact on existing employees. C MN Fa
204.
There are “seven deadly sins of outsourcing.” Which of the following is one of these deadly sins? A. Outsourcing to trustworthy vendors. B. Considering impact on existing employees. C. Maintaining oversight of vendors. D. Recognizing hidden costs of managing contracts. E. Not having good contracts with the vendor. E MN Fa
394
Schermerhorn & Wright: Management
Boundaryless Organizations 205.
A __________ organization eliminates internal boundaries among parts and external boundaries linking with the external environment. A. Divisional. B. Boundaryless. C. Functional. D. Geographical. E. Matrix. B KT Fa
206.
__________ organizations are those in which teamwork and intense communication take the place of formal lines of authority. A. Divisional. B. Functional. C. Geographical. D. Matrix. E. Boundaryless. E GT Fa
207.
Which of the following statements does NOT accurately describe a boundaryless organization? A. Boundaryless refers primarily to internal boundaries that structurally separate organization members from each other. B. Boundaryless organizations can be viewed as a combination of team and network structures, with the addition of “temporariness.” C. Key requirements for a boundaryless organization are the absence of hierarchy, empowerment of team members, technology utilization, and acceptance of impermanence. D. Due to the absence of structural barriers, boundaryless organizations have few communication and coordination problems. E. Boundaryless organizations encourage creativity, quality, timeliness, efficiency, and flexibility. D GT Ap
208.
A key assumption underlying __________ organizations is that empowered people working together without bureaucratic restrictions can accomplish great things. A. Divisional. B. Functional. C. Geographical. D. Boundaryless. E. Matrix. D GT Fa
209.
A(n) __________ is a special form of a boundaryless organization. A. Functional organization. B. Divisional organization. C. Virtual organization. D. Upside-down pyramid. E. Matrix structure. C GT Fa
Chapter 10: Organizing 210.
395
A(n) __________ operates in a shifting network of external strategic alliances that are engaged as needed, and typically are supported by extensive information technology (IT) utilization. A. Virtual organization. B. Upside-down pyramid. C. Functional organization. D. Divisional organization. E. Matrix structure. A KT Fa
ORGANIZING TRENDS AND PRACTICES (STUDY QUESTION 4) 211.
The __________ is the concept of putting customers on the top, served by workers in the middle, who in turn are supported by managers at the bottom. A. Employee empowerment structural adaptation. B. The customer-focused stacked organization. C. Upside-down pyramid. D. Customer-driven organization chart. E. Functionally stacked structure. C KT Fa
212.
Organizing trends in the modern workplace share a common theme. This theme is __________. A. Making the adjustments needed to increase market share, product lines, and sales commissions. B. Making the adjustments needed to streamline operations for cost efficiency, higher performance, and increased participation by workers. C. Making the adjustments needed to streamline operations for cost efficiency, enhance market share, and diminish worker involvement. D. Making the adjustments needed to decrease tax liabilities and regulatory interventions. E. Making the adjustments needed to increase profitability and decrease costs. B GT Ap
213.
Which of the following statements accurately describes something about organizing trends and practices in the modern workplace? A. Organizing practices are in a state of change as new structures are developed to respond to increasingly competitive environments. B. One important organizing trend is the upside-down pyramid. C. Included among contemporary workplace organizing trends are shorter chains of command, less unity of command, wider spans of control, more delegation and empowerment, decentralization with centralization, and reduced use of staff. D. A and C. E. A, B, and C. E GT Fa
396
Schermerhorn & Wright: Management
Shorter Chains of Command 214.
The line of authority that vertically links all persons with successively higher levels of management is the __________. A. Unity-of-command principle. B. Span-of-control principle. C. Channel-of-communication principle. D. Chain of command. E. Line of authority. D KT Fa
215.
The principle stating that there should be a clear and unbroken chain of command linking each person in the organization to successively higher levels of authority is the __________. A. Unity-of-command principle. B. Span-of-control principle. C. Scalar principle. D. Managerial command principle. E. Effective leadership principle. C GT Fa
216.
When organizations grow in size, adding levels of management and thereby lengthening the chain of command, they tend to get __________. A. Taller. B. Shorter. C. Flatter. D. Wider. E. Narrower. A GT Fa
217.
Which of the following is NOT likely to accompany an increase in the number of levels in the chain of command? A. Overhead costs increase. B. Decision making can be slowed greatly. C. The communication distance between the top and bottom levels of the organization is increased. D. The organization gains additional competitive advantage. E. Direct contact with the client or customer may be lost. D GT Fa
218.
A contemporary trend with regard to the chain of command is for organizations to __________. A. Gain a competitive advantage by hiring more managerial talent. B. Clarify superior-subordinate reporting relationships. C. Streamline by cutting unnecessary levels of management. D. All of the above. E. None of the above. C GT Ap
Chapter 10: Organizing
397
Less Unity of Command 219.
The principle stating that each person in the organization should report to one and only one supervisor is known as the __________. A. Unity-of-command principle. B. Span-of-control principle. C. Channel-of-communication principle. D. Chain of command. E. Line of authority. A GT Fa
220.
When a department head bypasses a person’s supervisor and issues orders directly to the supervisor’s subordinate, the __________ principle has been violated. A. Span-of-control. B. Unity-of-command. C. Channel-of-communication. D. Chain-of-command. E. Line-of-authority. B GT Ap
221.
Which of the following principles addresses the problem of people having “too many bosses”? A. Span-of-control principle. B. Channel-of-communication principle. C. Chain-of-command principle. D. Line-of-authority principle. E. Unity-of-command principle. E GT Ap
222.
Which one of the following organization structures, by design, violates the unity-of-command principle? A. Matrix structure. B. Functional structure. C. Divisional structure. D. Vertical coordination structure. E. Horizontal coordination structure. A GT Fa
223.
The current trend is for people to work for more than one boss because organizations are using more __________. A. Cross-functional teams. B. Task forces. C. Horizontal structures. D. A and B. E. A, B, and C. E GT Ap
398
Schermerhorn & Wright: Management
Wider Spans of Control 224.
The number of persons reporting directly to a single manager is an organizational issue relating to __________. A. Functional authority. B. Centralization. C. Line and staff relationships. D. Informal structures. E. Span of control. E KT Fa
225.
Organizations with wide spans of control tend to __________. A. Have many levels of management. B. Be more costly than organizations with narrower spans of control. C. Have many middle managers. D. Have tall structures. E. Have flat structures. E GT Ap
226.
Organizations with narrow spans of control tend to __________. A. Have few levels of management. B. Be less costly than organizations with wider spans of control. C. Have few middle managers. D. Have tall structures. E. Have flat structures. D GT Ap
227.
Which of the following statements about span of control is NOT accurate? A. When the span of control is narrow, relatively few people report directly to a given manager. B. Early management theorists sought to determine the optimum span of control for any manager. C. There is a limit to the number of people one manager can effectively supervise. D. Narrow spans of control create an organization that is less efficient and less flexible. E. Wider spans of control usually result in additional management overhead costs. E GT Fa
228.
Recent structural moves in American organizations have resulted in __________. A. Narrower spans of control in organizations. B. More vertical levels in the chains of command. C. More middle managers. D. Wider spans of control in organizations. E. Increasing the number of management levels. D GT Ap
Chapter 10: Organizing
399
More Delegation and Empowerment 229.
The process of entrusting work to others in the organization by giving them the right to make decisions and take action is __________. A. What the manager should do. B. The hierarchy of authority. C. Delegation. D. Empowerment. E. Decentralization. C KT Fa
230.
Which one of the following statements accurately describes the process of delegation? A. Responsibility, authority, and accountability are the foundations of vertical coordination through delegation. B. Accountability is an expectation for the other person to perform assigned tasks. C. Responsibility is the right to act in ways to carry out the assigned tasks. D. Authority is the requirement to answer to a supervisor for performance results. E. Empowerment is not an essential part of delegation. A GT Ap
231.
The __________ principle states: “authority should equal responsibility when work is delegated from a supervisor to a subordinate.” A. Scalar. B. Span-of-control. C. Balance-of-command. D. Responsible management. E. Authority-and-responsibility. E GT Fa
232.
Which of the following statements does NOT provide an accurate description of some aspect of delegation? A. Failure to delegate may result from a manager’s lack of trust in others or his/her inflexibility regarding how things should be done. B. Failure to delegate overloads the manager with work that could be done by others. C. Effective delegation denies others opportunities to fully utilize their talents on the job. D. Effective delegation leads to empowerment of workers. E. Effective delegation can increase employees’ job satisfaction and work performance. C GT Ap
233.
The current trend in delegation is __________. A. To delegate more only to middle management. B. To empower people only at the bottom level of the organization. C. To delegate less and retain power at the top of the organization. D. To maintain the status quo. E. To delegate more and find more ways to empower people at all levels. E GT Ap
400
Schermerhorn & Wright: Management
234.
According to the text, which of the following would NOT be a good rule for effective delegation? A. Define responsibility and make the assignment clear. B. Allow the other person to act independently. C. Agree on a performance timetable. D. Be careful about who will be given an assignment. E. Allow the subordinate to set performance objectives. E MN Fa
235.
Effective delegation includes all of the following activities EXCEPT: A. Let the other person evaluate his/her own work. B. Agree on a performance timetable. C. Give performance feedback. D. Recognize and reinforce progress. E. Help when things go wrong. A MN Fa
236.
Which of the following would NOT be a good rule for effective delegation? A. Don’t forget your own accountability for performance results. B. Show trust in the other person. C. Let the other person volunteer. D. Give authority. E. Provide performance support. C MN Fa
Decentralization with Centralization 237.
When decision-making authority is concentrated at the top levels of an organization, the organization is said to be __________. A. Vertically coordinated. B. Decentralized. C. Centralized. D. Horizontally coordinated. E. Control oriented. C KT Fa
238.
In a highly centralized organization, one would expect to find __________. A. Relatively flat structures. B. Functional forms of departmentalization. C. A concentration of decision making with top management. D. Increased job autonomy. E. Less concern for the size of spans of control. C KT Fa
Chapter 10: Organizing
401
239.
When decision-making authority is dispersed by extensive delegation throughout all levels of management, the organization is said to be __________. A. Vertically coordinated. B. Decentralized. C. Centralized. D. Horizontally coordinated. E. Control oriented. B KT Fa
240.
An organization that operates in a decentralized fashion will __________. A. Be very tall with wide spans of control. B. Allow lower-level persons to participate in decision making. C. Have difficulty specifying its formal structure on an organization chart. D. Probably use a matrix form of departmentalization. E. Suffer control problems due to violations of the unity-of-command principle. B KT Fa
241.
With respect to centralization and decentralization, the current trend is for organizations to __________. A. Centralize both decision making and control. B. Decentralize both decision making and control. C. Decentralize decision making and centralize control. D. Centralize decision making and decentralize control. E. De-emphasize the roles of centralization and decentralization in decision making and control. C GT Ap
Reduced Use of Staff 242.
People who perform a technical service or provide special problem-solving expertise for other parts of the organization are called __________. A. Personal staff. B. Functional staff. C. Vice presidential staff. D. Specialized staff. E. Chief executive staff. D KT Fa
243.
An employee who is in an “assistant-to” position with the purpose of providing special support to higher-level managers is considered to be __________. A. Personal staff. B. Advisory staff. C. Specialized staff. D. Technical staff. E. Detail staff. A KT Fa
402
Schermerhorn & Wright: Management
244.
In organizations, __________ personnel provide expert advice and guidance to __________ personnel. A. Manufacturing … marketing. B. Operating … sales. C. Staff … line. D. Line … staff. E. Supervisory … hourly. C GT Fa
245.
Advisory authority is defined as the authority of staff personnel to __________. A. Dictate actions to line personnel. B. Supervise line personnel. C. Conduct performance appraisals on line personnel. D. Manage line personnel activities. E. Suggest but not dictate actions to line personnel. E GT Fa
246.
When __________ is used, staff personnel require others to do as requested within the boundaries of staff expertise. A. Specialized authority. B. Advisory authority. C. Functional authority. D. Mandated authority. E. Charismatic authority. C GT Fa
247.
When a human resource manager is able to deny the request of a manufacturing manager to hire a certain person because affirmative action guidelines had not been followed during the hiring process, the human resource manager is exercising __________ authority over the manufacturing manager. A. Line. B. Functional. C. Formal. D. Decentralized. E. Matrix. B GT Ap
248.
Which of the following statements does NOT accurately describe challenges associated with the use of staff? A. Because of cost considerations, cutting back on staff is a common first choice in downsizing and other turnaround efforts. B. Staff with advisory authority can suggest but not dictate. C. Staff with functional authority can require that others do as requested within the boundaries of staff expertise. D. There is one best way to divide work between line and staff responsibilities. E. Staff can grow to the point where it costs more in administrative overhead than the staff is worth. D GT Ap
Chapter 10: Organizing 249.
403
The current trend in the use of staff is to __________. A. Reduce the size of staff in order to increase operating efficiency. B. Maximize the size of staff in order to increase operating effectiveness. C. Maximize the size of staff in order to help create a full-employment economy. D. Completely eliminate staff positions. E. Change the staff size in proportion to changes in sales. A GT Ap
Essay Questions 250.
What is the organizing function? How does it relate to the other management functions? Suggested Answer: Organizing is the process of arranging people and other resources to work together to accomplish a goal. Organizing follows the planning function and precedes the leading and controlling functions. Planning gives direction to the organization by providing a clear mission, core values, objectives, and strategy. In short, planning results in strategy formulation. Organizing begins the process of strategy implementation by dividing up the work, arranging resources, and coordinating activities. Leading and controlling continue with the process of strategy implementation
251.
Explain the concepts of organization chart, formal structure, and informal structure. Why must a manager understand both the formal structure and the informal structure of an organization? Suggested Answer: An organization chart ⎯ which is a diagram identifying key positions and job titles within an organization, as well as lines of authority and communication ⎯ provides a representation of the organization’s formal structure. The formal structure is the organization’s official structure; it reflects the official pattern of relationships in an organization. The informal structure is a “shadow” organization made up of the unofficial, but often critical, working relationships among organizational members. By understanding the formal structure, a manager knows about the organization’s division of work, supervisory relationships, communication channels, major subunits, and levels of management. This knowledge indicates how the organization is supposed to work. However, an organization does not always operate according to the dictates of the formal structure. Knowledge of the informal structure is needed as well since the informal structure supplements rather than replaces the formal structure.
252.
Briefly describe the functional, divisional, and matrix types of organizational structure. What are the advantages and disadvantages of each type of organizational structure?
404
Schermerhorn & Wright: Management Suggested Answer: Functional structures occur when people with similar skills and performing similar tasks are grouped together. Potential advantages of functional structures include the following: economies of scale with efficient use of resources; task assignments consistent with expertise and training; high-quality technical problem solving; in-depth training and skill development within functions; and clear career paths within functions. Potential disadvantages of functional structures include: the functional chimneys problem; development of self-centered and narrow viewpoints, which tend to break down the sense of cooperation and common purpose; too many decisions being referred upward in the hierarchy; and difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation in response to environmental changes. Divisional structures group together people who work on the same product or process, serve similar customers, or are located in the same area or geographic region. Potential advantages of divisional structures include: more flexibility in responding to environmental changes; improved coordination across functional departments; clear points of responsibility for product or service delivery; expertise focused on specific customers, products, and regions; and greater ease in changing size by adding or deleting divisions. Potential disadvantages of divisional structures include: duplication of resources and efforts across divisions, competition and poor coordination across divisions, and emphasis on divisional goals at the expense of organizational goals. A matrix structure combines elements of both the functional and divisional structures in an attempt to gain the advantages and minimize the disadvantages of each. Potential advantages of matrix structures include: more interfunctional cooperation in operations; increased flexibility in meeting changing demands; better customer service championed by project managers; better performance accountability through project managers; improved problem solving taking place at the team level, where the best information is available; and improved strategic management as top managers are freed to focus on strategic issues. Potential disadvantages of matrix structures include the following: the two-boss system can result in power struggles as functional supervisors and team leaders compete with each other to exercise authority; the two-boss system can create task confusion and conflict in work priorities; teams may develop “groupitis” –– strong team loyalties that cause a loss of focus on larger organizational goals; and costs may increase due to adding team leaders to the structure.
253.
Briefly discuss the nature of team structures, network structures, and boundaryless organizations. Why are these new structural forms becoming popular? Suggested Answer: Team structures formally designate and use permanent and temporary teams to accomplish tasks. Team structures often use cross-functional teams that are composed of members from different areas of functional work responsibility. A network structure consists of a central organizational core that is linked through networks of relationships with contractors and outside suppliers of essential services. Network structures use communications and information technology to support a shifting variety of strategic alliances and strategic contracts that sustain operations. Boundaryless organizations eliminate internal boundaries linking component parts and external boundaries linking with the external environment. In the internal context, teamwork and communication replace formal lines of authority. In the external context, organizational needs are met through a shifting mix of outsourcing contracts and operating alliances that form and disband with changing circumstances.
Chapter 10: Organizing
405
These structural forms are becoming popular responses to the increasing pressures created by the global economy and hypercompetition. To respond to these pressures, organizations are relying on horizontal structures ⎯ such as team structures, network structures, and boundaryless organizations ⎯ that promote integration and utilize cross-functional teamwork. 254.
Identify the different organizing trends in the modern workplace. Explain how these trends will affect the operations of contemporary organizations. Suggested Answer: The text identifies six organizing trends that are affecting contemporary organizations. These trends are the following: • • • • • •
Shorter chains of command ⎯ organizations are being “streamlined” by cutting unnecessary levels of management; flatter and more horizontal structures are viewed as a competitive advantage. Less unity of command ⎯ organizations are using more cross-functional teams, task forces, and horizontal structures, thereby promoting less, not more, unity of command. Wider spans of control ⎯ many organizations are shifting to wider spans of control as levels of management are eliminated and subordinates operate with less direct supervision. More delegation and empowerment ⎯ managers are delegating more so that people at all levels are empowered to make decisions about their work. Decentralization with centralization ⎯ whereas empowerment and related forces are contributing to more decentralized decision making in organizations, advances in information technology simultaneously allow for the retention of centralized control. Reduced use of staff ⎯ organizations are trying to reduce the use of staff in order to improve operating efficiency.
All six organizing trends have similar effects on the operations of contemporary organizations. Specifically, the organizing trends share a common theme of making the adjustments needed to streamline operations for cost efficiency, higher performance, and increased worker participation.
Chapter 11:
ORGANIZATIONAL DESIGN AND WORK PROCESSES True/False Questions CHAPTER INTRODUCTION 1.
Traditional structures are being flattened and decision making is being decentralized to the point where knowledge exists. T GT Fa
2.
The goals for changing traditional organizational structures include improved teamwork, more creativity, shorter product development cycles, and better customer service. T GT Fa
ORGANIZATIONAL DESIGN ESSENTIALS (STUDY QUESTION 1) 3.
Organizations face widely varying problems and opportunities that affect how they are structured and managed. T GT Fa
4.
The key to organizational success is finding the one best organization design to fit all problems and opportunities. F GT Ap
What Is Organizational Design? 5.
Organizational design is the process of choosing and implementing organizational structures that best arrange resources to accomplish the organization’s mission and objectives. T KT Fa
6.
In aligning structures with situational contingencies, organizational design considers environment, strategy, and size but need not consider technology or people. F GT Fa
7.
The goal of organization design is to achieve the best fit among structure and the unique situation faced by each organization. T GT Fa
Organizational Effectiveness
407
408 8.
Schermerhorn & Wright: Management
Organizational effectiveness refers to sustainable high performance in using resources to accomplish mission and objectives. T KT Fa
9.
The internal process approach to organizational effectiveness looks at the input side and defines effectiveness in terms of success in acquiring needed resources from the organization’s environment. F GT Fa
10.
The systems resource approach to organizational effectiveness looks at the transformation process and examines how efficiently resources are utilized to produce goods and/or services. F GT Fa
11.
The goal approach to organizational effectiveness looks at the output side to measure achievement of key operating objectives. T GT Fa
12.
The strategic constituencies approach to organizational effectiveness looks to the environment to analyze the impact of the organization on key stakeholders and their interests. T GT Fa
13.
Short-run benchmarks of organizational effectiveness focus on performance effectiveness in goal accomplishment, performance efficiency in resources utilization, and stakeholder satisfactions. T GT Fa
14.
Long-run organizational effectiveness criteria include adaptability in the face of changing environments and development of people and systems to meet new challenges F GT Fa
15.
Survival under conditions of uncertainty is a short-run organizational effectiveness criterion. F GT Fa
16.
Any organizational design should advance organizational effectiveness. T GT Fa
Organizational Design Choices 17.
A bureaucracy is a form of organization based on logic, order, and the legitimate use of formal authority. T KT Fa
18.
A clear-cut division of labour, a strict hierarchy of authority, formal rules and procedures, and promotion based on competency are features that characterize bureaucracy. T GT Fa
Chapter 11: Organizational Design and Work Processes
409
19.
Bureaucracies tend to be rigid and formal, may be slow to respond to change, and may become unwieldy by relying too heavily on rules and procedures. T GT Fa
20.
The contingency perspective to organizational design asks: “When is the bureaucratic form a good choice for an organization?” T GT Fa
21.
Tom Burns and George Stalker found that the mechanistic organization thrived when the environment was unstable and changing because it provided a necessary, counterbalancing sense of order. F GT Fa
22.
According to the work of Burns and Stalker, an organic organization design thrives when the external environment is dynamic but struggles when the environment is stable. T GT Fa
23.
The organizational design that is highly bureaucratic in nature is called the organic design. F KT Fa
24.
In a mechanistic organization, an employee works in an orderly and disciplined environment, adheres to many rules and procedures, and is closely supervised. T GT Ap
25.
Adaptive organizations operate with a minimum of bureaucratic structure and with cultures that encourage worker empowerment and participation. T KT Fa
26.
Decentralized authority, fewer rules and procedures, and personal means of coordination are characteristics of organic designs. T KT Fa
27.
The mechanistic design is characterized by centralization, narrow spans of control, and many rules and procedures. T KT Fa
28.
Specialized tasks, few groups and task forces, and formal/impersonal coordination are characteristics of the organic design. F KT Fa
29.
Mechanistic designs are tight structures with a horizontal form. F GT Fa
30.
The limits of bureaucracy are especially apparent in organizations that must operate in highly dynamic and competitive environments. T GT Fa
31.
The mechanistic design is characterized by decentralization, wider spans of control, and few rules and procedures. F KT Fa
410
Schermerhorn & Wright: Management
32.
Shared tasks, many teams and task forces, and informal/personal coordination are characteristics of the organic design. T KT Fa
33.
Organizations that operate with a minimum of bureaucratic features and encourage worker empowerment and teamwork are called adaptive organizations. T KT Fa
34.
Organic designs are loose systems in which a lot of work gets done through informal structures and networks of interpersonal contacts. T GT Fa
35.
Dynamic environments and changing conditions call for more organic designs. T GT Ap
36.
Adaptive organizations promote narrow spans of control and tall structures. F GT Fa
37.
Adaptive organizations recognize the value of teamwork and legitimate cross-functional linkages, give employees the freedom to get the job done, and seek to free capable people from restrictive centralized controls. T GT Fa
38.
Adaptive organizations are built on a foundation of trust that people will do the right things on their own initiative. This approach can be described as a movement toward self-organization T GT Fa
39.
A highly adaptive organization can be transformed into one that is designed for continuous adaptation through problem solving, innovation, and learning. This type of organization is known as a change management organization. F KT Fa
CONTINGENCIES IN ORGANIZATIONAL DESIGN (STUDY QUESTION 2) 40.
Good organizational design decisions should result in supportive structures that satisfy situational demands and advance organizational effectiveness. T GT Fa
41.
Environment, strategy, technology, size and life cycle, and human resources are the contingency factors that managers should consider in organizational design. T GT Fa
42.
When managers think contingently about the design of an organization, they should ask certain questions such as: Does the design fit well with the major problems and opportunities of the external environment? Does the design support core technologies and permit them to be used to the best advantage? Can the design handle changes in organizational size and different stages of the organizational life cycle? T MN Fa
Chapter 11: Organizational Design and Work Processes 43.
411
When managers think contingently about the design of an organization, they should ask questions such as: What are the individual choices for organizational design in the manager’s department? Does the design respond to cultural diversity? F MN Fa
Environment 44.
A certain environment is composed of relatively stable and predictable elements. T GT Fa
45.
Organizations operating in certain environments experience frequent changes that may catch decision makers by surprise. F GT Fa
46.
An organization operating in a certain environment should use a mechanistic organization T GT Fa
47.
An uncertain environment is dynamic and composed of less predictable elements. T GT Fa
48.
Organizations operating in uncertain environments must be flexible and responsive over relatively short time horizons. T GT Fa
49.
An organization operating in an uncertain environment uses a mechanistic organization design. F GT Fa
50.
Mechanistic designs are appropriate structures for companies operating in an uncertain environment; and organic designs are appropriate for organizations operating in a certain environment. F GT Fa
Strategy 51.
Alfred Chandler suggests that organization structures should be congruent with any changes in strategy. T GT Fa
52.
Stability-oriented strategies are better supported with an organic organization design. F GT Fa
53.
Growth-oriented strategies are better supported with a mechanistic organization design. F GT Fa
54.
Once a good “fit” between an organization’s strategy and structure is achieved, it will continue to work well, no matter what other changes occur in the organization’s situation. F GT Ap
412
Schermerhorn & Wright: Management
Technology 55.
Technology is the combination of knowledge, skills, equipment, computers, and work methods used to transform resource inputs into organizational outputs. T KT Fa
56.
Joan Woodward’s core manufacturing technology classification includes short-linked, longlinked, and mediating technologies. F GT Fa
57.
An organization that manufactures a variety of products crafted to fit customer specifications is using small-batch technology. T KT Fa
58.
An organization that produces large numbers of uniform products with an assembly-line system is using continuous-process production technology. F KT Fa
59.
An organization that produces a few products by continuously feeding raw materials through a highly automated production system with largely computerized controls is using long-linked technology. F KT Fa
60.
According to Joan Woodward’s study of technology, the best small-batch and continuous-process plants had mechanistic structures. F GT Fa
61.
According to Joan Woodward’s study of technology, the best mass-production operations had organic structures. F GT Fa
62.
The technological imperative states that organizational structure has a major influence on technological development. F GT Fa
63.
Core service technologies include small batch, mass, and continuous process methods of operating. F KT Fa
64.
Intensive, mediating, and long-linked technologies are important for organizational design in service industries. T GT Fa
65.
Technology that focuses the efforts of many people with special expertise on the needs of clients is defined as mediating technology. F KT Fa
Chapter 11: Organizational Design and Work Processes
413
66.
Mediating technology links together parties who are seeking a mutually beneficial exchange of values. T KT Fa
67.
Technology that can function like mass production where a client is passed from point to point for various aspects of service delivery is defined as continuous-process technology. F KT Fa
Size and Life Cycle 68.
As organizations grow, they tend to become more bureaucratic and have difficulty in adapting to changing environments. T GT Ap
69.
The evolution of an organization through different stages of growth is referred to as the organizational life cycle. T KT Fa
70.
In the organizational life cycle, an organization evolves through four different stages of growth: birth, youth, midlife, and maturity. T GT Fa
71.
In the birth stage of the organizational life cycle, the organization starts to grow rapidly and management responsibilities extend among more people. F GT Fa
72.
In the youth stage of the organizational life cycle, the organization is relatively small and the structure is quite simple. F GT Fa
73.
In the mid-life stage of the organizational life cycle, the organization has grown large, with a more complex and increasingly formal structure. T GT Fa
74.
In the maturity stage of the organizational life cycle, the organization stabilizes at a large size, typically with a mechanistic structure. T GT Fa
75.
Bureaucratic tendencies toward stability may lead an organization toward decline at the maturity stage of the organizational life cycle. T GT Fa
76.
Downsizing involves taking actions to reduce the scope of operations and number of employees. T GT Fa
77.
Intrapreneurship is entrepreneurial behaviour by individuals and subunits within large organizations. T KT Fa
414 78.
Schermerhorn & Wright: Management Simultaneous systems are organizations that utilize both mechanistic and organic designs to meet the need for production efficiency and continued innovation. T KT Fa
Human Resources 79.
A good organizational design provides people with the supporting structures they need to achieve high performance and high satisfaction in their work. T GT Fa
80.
The contingency view on people-structure relationships is that here should be a good “fit” between organizational structures and human resources. T GT Fa
81.
The contingency view on people-structure relationships is that organization structure should be eliminated since it constraints people’s creativity and freedom. F GT Fa
82.
An important human resource issue in organization design is skill. T GT Fa
83.
In an age of information and knowledge workers, mechanistic designs with an emphasis on close supervision of employees must be used. F GT Fa
84.
Organic designs with their emphasis on empowerment are of little value in an age of information and knowledge workers. F GT Fa
SUBSYSTEMS DESIGN AND INTEGRATION (STUDY QUESTION 3) 85.
A subsystem is a work unit or department headed by a manager and that operates as a smaller component of a larger and total organizational system. T KT Fa
86.
According the research findings of Paul Lawrence and Jay Lorsch, successful firms operating in certain environments had more organic designs, whereas successful firms operating in uncertain environments had more mechanistic designs. F GT Fa
87.
In their study of systems and subsystems design, Paul Lawrence and Jay Lorsch found that subsystems in the successful firms worked well together, even though some had very different structures. T GT Fa
Chapter 11: Organizational Design and Work Processes 88.
415
In their study of systems and subsystems design, Paul Lawrence and Jay Lorsch found that subsystems in successful firms were aligned with the challenges of their respective subenvironments. T GT Fa
Subsystem Differentiation 89.
Differentiation refers to the degree of difference that exists among subsystems in an organization. T KT Fa
90.
Differences in time orientation, objectives, interpersonal orientation, and formal structure are sources of differentiation among subsystems. T GT Fa
91.
If the manufacturing subsystem in a business firm has shorter-term action horizon than the research and development group, thus making it difficult for the two units to work together, they are experiencing differences in time orientation. T GT Ap
92.
If production managers are cost conscious but marketing managers are volume conscious, making it difficult for them to agree on solutions to common problems, they are experiencing differences in formal structure. F GT Ap
93.
If one unit manager has a strong “task” orientation while a manager in another unit has a strong “people” orientation, integration between these units most likely will have to overcome differences in objectives. F GT Ap
94.
One manager’s strict rules and procedures limit another manager’s discretion in interunit negotiation and flexible problem solving. These two managers are experiencing differences in strategic orientation. F GT Ap
Subsystem Integration 95.
Integration represents the level of coordination achieved among subsystems in an organization. T KT Fa
96.
A basic problem in organizations that particularly affects subsystem design is that as differentiation increases, the need for integration increases but it becomes more difficult to accomplish. T GT Ap
97.
Rules and procedures, hierarchical referral, and planning are horizontal integration mechanisms in organizational design. F GT Fa
416
Schermerhorn & Wright: Management
98.
The use of rules and procedures, hierarchical referral, and planning work best as integrating mechanisms when differentiation is high. F MN Fa
99.
Direct contact between managers, liaison roles, task forces, teams, and matrix structures are vertical integration mechanisms in organizational design. F MN Fa
100.
The use of direct contact between managers, liaison roles, task forces, teams, and matrix structures work best as integrating mechanisms when differentiation is low. F MN Fa
101.
Rules and procedures, matrix organizations, liaison roles, planning, direct contact among managers, hierarchical referral, are teams are different ways of improving subsystems integration in organizations. T MN Fa
WORK PROCESS DESIGN (STUDY QUESTION 4) 102.
Process reengineering is the systematic and complete analysis of work processes and the design of new and better ones. T KT Fa
103.
The goal of process reengineering is to focus attention on improving customer satisfaction and work performance rather than focusing on breaking people’s habits or eliminating their preoccupation with past accomplishments. F GT Fa
What Is a Work Process? 104.
A work process refers to a group of related tasks that together create value for the customer. T KT Fa
105.
A work process involves the following four key components: common goals, customers, products, and outcomes. F GT Fa
106.
Workflow is the way work moves from one point to another in the manufacturing or service delivery processes. T KT Fa
107.
The various steps of a work process must be completed to achieve desired results, and they typically must be completed in a given order. T GT Fa
Chapter 11: Organizational Design and Work Processes
417
How to Reengineer Core Processes 108.
Through customer value chain analysis, an organization’s core processes are identified and carefully evaluated for their contributions to performance. F KT Fa
109.
In process value analysis, each step in the workflow is examined to determine if it is important, useful, and contributing to the value added. T GT Fa
110.
The process value analysis approach uses a six-step procedure to identify and carefully evaluate core processes for their performance contributions. T GT Fa
111.
In reengineering core processes, managers should: identify the core processes; map the core processes with respect to workflows; evaluate all tasks for the core processes; search for ways to eliminate unnecessary tasks or work; search for ways to eliminate delays, errors, and misunderstandings; and search for efficiencies in how work is shared and transferred among people and departments. T GT Fa
Process-Driven Organizations 112.
Customers, efficiency, and teamwork are central to Michael Hammer’s approach to process reengineering. T GT Fa
113.
Process reengineering tries to redesign processes to establish control for them with an identifiable group of people, and to focus each person and the entire system on meeting customer needs and expectations. T GT Fa
114.
Eliminating duplication of work and systems bottlenecks are prime objectives of process reengineering, whereas reducing costs and increasing efficiency while creating the ever-present capacity for change are not prime objectives of process reengineering. F GT Fa
418
Schermerhorn & Wright: Management
Multiple Choice Questions CHAPTER INTRODUCTION 115.
Which of the following statements does NOT describe a way in which traditional organizational structures are changing? A. Traditional structures are being flattened. B. Networks are being developed. C. More people are being hired. D. Information technology is being utilized. E. Decision making is being decentralized to the point where knowledge exists. C GT Fa
116.
The goals for changing traditional organizational structures include all of the following EXCEPT: A. Improved teamwork. B. More creativity. C. Shorter product development cycles. D. Better customer service. E. Maintenance of current productivity levels. E GT Fa
ORGANIZATIONAL DESIGN ESSENTIALS (STUDY QUESTION 1) 117.
The following statements describe different forces that are affecting structural design and how organizations are responding to these forces. Which statement is NOT correct? A. Organizations are changing and adapting their structures to meet the competitive demands of a dynamic environment. B. Changing times require more flexible and well-integrated organizations. C. Team structures and network organizations are gaining in popularity. D. Organizations face widely varying problems and opportunities that affect how they are structured and managed. E. The key to success is finding the one best organization design to fit all problems and opportunities. E GT Ap
What Is Organizational Design? 118.
__________ is the process of choosing and implementing structures that best arrange resources to accomplish the organization’s mission and objectives. A. Cultural management. B. Structural strategizing. C. Organization design. D. Mechanizing the organization. E. Cultural adaptation. C KT Fa
Chapter 11: Organizational Design and Work Processes
419
119.
The ultimate purpose of __________ is to create an alignment between structures and situational challenges. A. Cultural management. B. Structural strategizing. C. Organization design. D. Mechanizing the organization. E. Cultural adaptation. C GT Fa
120.
In aligning structures with situational contingencies, organizational design considers all of the following EXCEPT: A. Environment. B. People. C. Strategy. D. Technology. E. Job design. E GT Fa
121.
Which alternative accurately describes the variables that should be considered in aligning organizational structures with situational contingencies? A. Environment, strategies, people, technology, and size. B. Environment, strategies, people, technology, and leadership. C. Technology, job design, people, work teams, and leadership. D. People, work teams, leadership, decision making, and communications. E. Decision making, communications, information technology, computers, and networks. A GT Fa
122.
The goal of __________ is to achieve the best fit between structure and the unique situation faced by each organization. A. Cultural management. B. Structural strategizing. C. Mechanizing the organization. D. Cultural adaptation. E. Organization design. E GT Fa
Organizational Effectiveness 123.
__________ refers to sustainable high performance in using resources to accomplish mission and objectives. A. Organizational vision. B. The technological imperative. C. Organizational effectiveness. D. Ethical management. E. High intensity leadership. C KT Fa
420
Schermerhorn & Wright: Management
124.
The __________ to organizational effectiveness looks at the input side and defines effectiveness in terms of success in acquiring needed resources from the organization’s environment. A. Systems resource approach. B. Internal process approach. C. Technological approach. D. Goal approach. E. Strategic constituencies approach. A GT Fa
125.
The __________ to organizational effectiveness looks at the transformation process and examines how efficiently resources are utilized to produce goods and/or services. A. Systems resource approach. B. Internal process approach. C. Technological approach. D. Goal approach. E. Strategic constituencies approach. B GT Fa
126.
The __________ to organizational effectiveness looks at the output side to measure achievement of key operating objectives. A. Systems resource approach. B. Internal process approach. C. Technological approach. D. Goal approach. E. Strategic constituencies approach. D GT Fa
127.
The __________ to organizational effectiveness looks to the environment to analyze the impact of the organization on key stakeholders and their interests. A. Systems resource approach. B. Internal process approach. C. Technological approach. D. Goal approach. E. Strategic constituencies approach. E GT Fa
128.
Short-run benchmarks of organizational effectiveness focus on __________. A. Performance effectiveness in goal accomplishment. B. Performance efficiency in resource utilization. C. Stakeholder satisfactions. D. A and B. E. A, B, and C. E GT Fa
Chapter 11: Organizational Design and Work Processes
421
129.
__________ organizational effectiveness criteria include adaptability in the face of changing environments and development of people and systems to meet new challenges A. Short-run. B. Medium-term. C. Long-run. D. A and C. E. None of the above. B GT Fa
130.
Survival under conditions of uncertainty is a __________ organizational effectiveness criterion. A. Process-oriented. B. Short-run. C. Medium-term. D. Long-run. E. Stakeholder. D GT Fa
131.
While there is no universal organizational design that applies in all circumstances, any organizational design should __________. A. Advance organizational effectiveness. B. Be rigorously evaluated. C. Be based on advanced information technology. D. A and B. E. A, B, and C. D GT Fa
Organizational Design Choices 132.
A(n) __________ is a form of organization based on logic, order, and the legitimate use of formal authority. A. Rational structure. B. Authoritative organization. C. Ethical culture. D. Bureaucracy. E. Adaptive structure. D KT Fa
133.
As an “ideal organizational form,” bureaucracy is characterized by all of the following EXCEPT: A. A clear-cut division of labour. B. Positions arranged in a strict hierarchy of authority. C. Orderliness, fairness, and efficiency. D. A system of formal rules and procedures. E. Promotions based on seniority. E GT Fa
422
Schermerhorn & Wright: Management
134.
Which of the following are negative characteristics of bureaucracies? A. Bureaucracies tend to be rigid and formal. B. Bureaucracies may become unwieldy by relying too heavily on rules and procedures. C. Bureaucracies may be slow to respond to change. D. All of the above. E. None of the above. D GT Fa
135.
Which statement about the contingency perspective to organizational design is incorrect? A. It asks: “When is the bureaucratic form a good choice for an organization?” B. It has foundations in the research of Tom Burns and George Stalker. C. It views all bureaucratic structures as inevitably flawed. D. It asks: “What alternatives exist when the bureaucratic form is not a good choice? E. It looks beyond bureaucracy. C GT Fa
136.
In a classic study conducted in the 1960s, Burns and Stalker __________. A. Identified three basic organizational forms: bureaucratic, mechanistic, and organic. B. Developed conclusions that have been substantially refuted by later research. C. Revealed that bureaucratic structures thrived when the environment was uncertain and changing. D. Favored organic over mechanistic forms. E. Concluded that different organizational structures could be successful, depending on the nature of the firm’s external environment. E GT Fa
137.
According to the work of Burns and Stalker, a(n) __________ organization design thrives when the external environment is stable but struggles when the environment is changing and uncertain. A. Machine. B. Mechanistic. C. Organic. D. Professional. E. Divisional. B GT Fa
138.
According to the work of Burns and Stalker, a(n) __________ organization design thrives when the external environment is dynamic but struggles when the environment is stable. A. Machine. B. Mechanistic. C. Organic. D. Professional. E. Divisional. C GT Fa
Chapter 11: Organizational Design and Work Processes
423
139.
The organizational design that is highly bureaucratic in nature is called the __________ design. A. Machine. B. Mechanistic. C. Organic. D. Professional. E. Divisional. B KT Fa
140.
The __________ design is characterized by centralization, narrow spans of control, and many rules and procedures. A. Mechanistic. B. Traditional. C. Organic. D. Adaptive. E. Transformational. A KT Fa
141.
Specialized tasks, few groups and task forces, and formal/impersonal coordination are characteristics of the __________ design. A. Mechanistic. B. Organic. C. Traditional. D. Adaptive. E. Transformational. A KT Fa
142.
A mechanistic design has all the following characteristics EXCEPT: A. Many rules and procedures. B. Narrow spans of control. C. Specialized tasks. D. Few teams and task forces. E. Informal and personal coordination. E KT Fa
143.
Mechanistic designs are __________ structures with a __________ form. A. Loose horizontal. B. Loose vertical. C. Tight horizontal. D. Tight vertical. E. Open network. D GT Fa
144.
The basic organization design of a fast food franchise is most likely __________. A. Organic. B. Mechanistic. C. A combination of both. D. Neither organic nor mechanistic. E. Strategic. B GT Ap
424
Schermerhorn & Wright: Management
145.
The limits of bureaucracy are especially apparent in organizations that must __________. A. Operate in highly competitive environments. B. Respond to the forces of globalization. C. Deal with ever-changing technologies. D. All of the above. E. None of the above. D GT Fa
146.
The __________ design is characterized by decentralization, wider spans of control, and few rules and procedures. A. Mechanistic. B. Traditional. C. Organic. D. Bureaucratic. E. Transformational. C KT Fa
147.
Shared tasks, many teams and task forces, and informal/personal coordination are characteristics of the __________ design. A. Mechanistic. B. Organic. C. Traditional. D. Bureaucratic. E. Transformational. B KT Fa
148.
An organic design has all the following characteristics EXCEPT: A. Decentralized authority. B. Few rules and procedures. C. Narrow spans of control. D. Shared tasks. E. Many teams and task forces. C KT Fa
149.
Organizations that operate with a minimum of bureaucratic features and encourage worker empowerment and teamwork are called __________. A. Organic organizations. B. Networks. C. New bureaucracies. D. Adaptive organizations. E. Mechanistic organizations. D KT Fa
Chapter 11: Organizational Design and Work Processes
425
150.
Organic designs are __________ systems in which a lot of work gets done through __________ structures and networks of interpersonal contacts. A. Loose formal. B. Loose informal. C. Tight formal. D. Tight informal. E. Open highly formal.. B GT Fa
151.
__________ have features of __________, including decentralized authority, fewer rules and procedures, less division of labour, wider spans of control, and more personal means of coordination. A. Adaptive organizations organic designs. B. Bureaucratic organizations organic designs. C. Bureaucratic organizations mechanistic designs. D. Adaptive organizations mechanistic designs. E. Adaptive organizations functional designs. A GT Fa
152.
Which statement is accurate? A. Organizations are either purely organic or purely mechanistic in design. B. Specialization in the form of job design and departmentalization is required in organic structures but not in mechanistic structures. C. Vertical coordination is the purpose behind organic designs; horizontal coordination is the purpose behind mechanistic structures. D. Dynamic environments and changing conditions call for more organic designs. E. Mechanistic designs are more efficient; organic designs are more effective. D GT Ap
153.
Adaptive organizations do all of the following EXCEPT: A. Recognize the value of teamwork and legitimate cross-functional linkages. B. Give employees the freedom to get the job done. C. Seek to free capable people from restrictive centralized controls. D. Promote narrow spans of control and tall structures. E. Rely upon trust and the belief that people will take the initiative to do the right things. D GT Fa
154.
Adaptive organizations are built on a foundation of trust that people will do the right things on their own initiative. This approach can be described as a movement toward __________. A. Self-organization. B. Employee-centered organizations. C. Simple organizations D. Loose organizations. E. Advocacy organizations. A GT Fa
426 155.
Schermerhorn & Wright: Management A highly adaptive organization can become one that is designed for continuous adaptation through problem solving, innovation, and learning. This type of organization is known as a __________. A. Matrix organization. B. Learning organization. C. New age organization. D. Contemporary organization. E. Change management organization. B KT Fa
CONTINGENCIES IN ORGANIZATIONAL DESIGN (STUDY QUESTION 2) 156.
Good organizational design decisions should result in supportive structures that __________ and __________. A. Satisfy situational demands … advance organizational effectiveness. B. Satisfy situational demands … allow human resources to be used adequately. C. Satisfy environmental demands … allow financial resources to be used to the best advantage. D. Satisfy bureaucratic demands … allow resources to be used reasonably and appropriately. E. Not exceed resource requirements … allow structural flexibility. A GT Fa
157.
What are the contingency factors that managers should consider in organizational design? A. Environment, strategy, technology, size and life cycle, and human resources. B. Strategy, objectives, structure, and product. C. General environment, specific environment, sociocultural factors, and management talent. D. Environment, technology, geography, and history. E. Operations, manufacturing ability, and marketing know-how. A GT Fa
158.
When managers think contingently about the design of an organization, they should ask certain questions. Which of the following is NOT one of these specific questions? A. Does the design fit well with the major problems and opportunities of the external environment? B. Does the design support core technologies and permit them to be used to the best advantage? C. Can the design handle changes in organizational size and different stages of the organizational life cycle? D. Does the design support and empower workers and allow their talents to be used to the best advantage? E. Can the design handle changes in leadership and use them to the best advantage? E MN Fa
Chapter 11: Organizational Design and Work Processes 159.
427
When managers think contingently about the design of an organization, they should ask certain questions. Which of the following best describes the types of questions managers should ask? A. What are the individual choices for organizational design in the manager’s department? B. Does the design support the implementation of strategies and the attainment of key operating objectives? C. Does the design respond to social forces but not environmental forces? D. Does the design respond to environmental forces but not social forces? E. Does the design respond to cultural diversity? B MN Fa
Environment 160.
A certain environment __________. A. Is only applicable to the stock market. B. Requires the Environmental Protection Agency to inspect all organizational designs. C. Is composed of relatively stable and predictable elements D. Is dynamic and composed of less predictable elements. E. Involves a high level of risk. C GT Fa
161.
Organizations operating in certain environments __________. A. Have relatively few changes in goods or services produced over time. B. Experience frequent changes that may catch decision makers by surprise. C. Must be flexible and responsive over relatively short time horizons. D. A and B. E. B and C. A GT Fa
162.
An organization operating in a certain environment should __________. A. Use an organic organization design. B. Use a mechanistic organization design. C. Use a growth-oriented strategy. D. Have an adaptive structure. E. Promote a multicultural environment. B GT Fa
163.
An uncertain environment __________. A. Is only applicable to the stock market. B. Requires the Environmental Protection Agency to inspect all organizational designs. C. Is composed of relatively stable and predictable elements D. Is dynamic and composed of less predictable elements. E. Cannot be considered under normal organizational situations. D GT Fa
428
Schermerhorn & Wright: Management
164.
Organizations operating in uncertain environments __________. A. Will have more dynamic and less predictable elements. B. Experience frequent changes that may catch decision makers by surprise. C. Must be flexible and responsive over relatively short time horizons. D. All of the above E. None of the above. D GT Fa
165.
An organization operating in an uncertain environment should __________. A. Use an organic organization design. B. Use a mechanistic organization design. C. Use a stability-oriented strategy. D. Have a bureaucratic structure. E. Promote a multicultural environment. A GT Fa
Strategy 166.
The notion that __________ follows __________ is an important premise of organizational design. A. Culture…structure. B. Structure…leadership. C. Structure…strategy. D. Strategy…structure. E. Mission…structure. C GT Fa
167.
Which of the following accurately describes the relationship between strategy and organizational design? A. Strategy follows structure. B. Stability-oriented strategies are better supported with an organic organization design. C. Growth-oriented strategies are better supported with a mechanistic organization design. D. All of the above. E. None of the above. E GT Fa
168.
__________ will be more successful when supported by bureaucratic organizations using mechanistic designs. A. Organization-wide strategies. B. Stability strategies. C. Growth strategies. D. Business strategies. E. Long-term strategies. B GT Fa
Chapter 11: Organizational Design and Work Processes 169.
429
__________ will be more successful when supported by adaptive organizations using organic designs. A. Organization-wide strategies. B. Stability strategies. C. Growth strategies. D. Business strategies. E. Long-term strategies. C GT Fa
Technology 170.
__________ is the combination of knowledge, skills, equipment, computers, and work methods used to transform resource inputs into organizational outputs. A. Strategy. B. Technology. C. A business plan. D. An organizational system. E. Job design. B KT Fa
171.
Technology is the combination of __________ used to transform resource inputs into organizational outputs. A. Strategy and environment. B. Tools and human resources. C. Knowledge, skills, equipment, computers, and work methods. D. Communication and decision making methods. E. People, strategy, and culture. C KT Fa
172.
Joan Woodward’s study of technology and structure produced a classification system of core manufacturing technologies that included which of the following three categories? A. Small-batch, mass production, and continuous-process. B. Intensive, mediating, and long-linked. C. Short-, medium-, and long-linked. D. Intensive, intermittent, and continuous process. E. Low, medium, and high. A GT Fa
173.
An organization that manufactures a variety of products crafted to fit customer specifications is using __________ technology. A. Continuous-process production. B. Mediating. C. Intensive. D. Craft shop. E. Small-batch. E KT Fa
430
Schermerhorn & Wright: Management
174.
An organization that produces large numbers of uniform products with an assembly-line system is using __________ technology. A. Continuous-process production. B. Mass production. C. Intensive. D. Industrial linkage. E. Long-linked. B KT Fa
175.
An organization that produces a few products by continuously feeding raw materials through a highly automated production system with largely computerized controls is using __________ technology. A. Continuous-process production. B. Mass production. C. Intensive. D. Supplier-linked. E. Long-linked. A KT Fa
176.
Which statement provides a correct match of work activity and the nature of the underlying technology? A. Automobile assembly at General Motors –– small-batch production. B. Automated chemical plants –– continuous-process production. C. Custom furniture restoration –– mass production. D. Oil refineries –– mass production E. Steel mills –– small-batch production. B GT Ap
177.
The primary implication of Joan Woodward’s research into technologies and structures is that __________. A. Technology develops to match structural evolution. B. Structural changes and technological development exhibit a random pattern. C. Technology typically evolves from mass production to continuous-process to small-batch production. D. Structural forms typically evolve from adaptive to organic to mechanistic to bureaucratic. E. The right combination of structure and technology is critical to organizational success. E GT Fa
178.
According to Joan Woodward’s study of technology, the best small-batch and continuous-process plants had __________ structures. A. Mechanistic. B. Bureaucratic. C. Mediating. D. Organic. E. Long-linked. D GT Fa
Chapter 11: Organizational Design and Work Processes
431
179.
According to Joan Woodward’s study of technology, the best mass-production operations had __________ structures. A. Mechanistic. B. Bureaucratic. C. Mediating. D. Organic. E. Long-linked. A GT Fa
180.
The assertion that technology is a major influence on organizational structure is known as __________. A. The technological theorem. B. The technological imperative. C. Schermerhorn’s second law of organizational design. D. The structural imperative. E. The inevitability of progress. B GT Fa
181.
Which of the following technology types are important for organizational design in service industries? A. Intensive, mediating, and long-linked. B. Small-batch, mass production, and continuous-process. C. Small-batch and mediating. D. Mass-production and intensive. E. Long-linked and continuous-process. A GT Fa
182.
Technology that focuses the efforts of many people with special expertise on the needs of clients is defined as __________ technology. A. Mediating. B. Long-linked. C. Intensive. D. Continuous-process. E. Service. C KT Fa
183.
Technology that links together parties seeking a mutually beneficial exchange of values is defined as __________ technology. A. Mediating. B. Long-linked. C. Intensive. D. Continuous-process. E. Service. A KT Fa
432 184.
Schermerhorn & Wright: Management Technology that can function like mass production where a client is passed from point to point for various aspects of service delivery is defined as __________ technology. A. Mediating. B. Long-linked. C. Intensive. D. Continuous-process. E. Service. B KT Fa
Size and Life Cycle 185.
Which statement concerning company size (as measured by number of employees) is correct? A. Size is an incidental factor in organizational design because basic organizational forms can fit any size. B. Organizations tend to adopt more organic structures as they increase in size. C. Larger organizations tend to have more mechanistic structures than smaller organizations. D. Pressures to increase specialization and differentiation lessen as an organization grows in size. E. As companies grow in size they have less and less difficulty in adapting to changing environments. C GT Ap
186.
As organizations grow in size, they tend to become __________ and subsequently tend to have __________ in adapting to a changing environment. A. More bureaucratic … less difficulty. B. More bureaucratic … more difficulty. C. Less bureaucratic … more difficulty. D. More organic … less difficulty. E. More organic … more difficulty. B GT Ap
187.
The evolution of an organization through different stages of growth is referred to as the __________. A. Organizational production stage. B. Organizational production cycle. C. Life cycle of growth. D. Organizational life cycle. E. Organizational marketing cycle. D KT Fa
Chapter 11: Organizational Design and Work Processes
433
188.
Which of the following statements provide an accurate description of the organizational life cycle? A. In the birth stage of the organizational life cycle, the organization is relatively small and the structure is quite simple. B. In the youth stage of the organizational life cycle, the organization starts to grow rapidly and management responsibilities extend among more people. C. In the mid-life stage of the organizational life cycle, the organization has grown large, with a more complex and increasingly formal structure. D. In the maturity stage of the organizational life cycle, the organization stabilizes at a large size, typically with a mechanistic structure. E. All of these statements are accurate. E GT Fa
189.
Ways of coping with the disadvantages of organizational size (bigness) include __________. A. Downsizing. B. Encouraging intrapreneurship. C. Using simultaneous structures. D. All of the above. E. None of the above. D GT Fa
190.
__________ involves taking actions to reduce the scope of operations and number of employees. A. Inverse pyramiding. B. Intrapreneurship. C. Downsizing. D. System simultaneity. E. Technological leadership. C GT Fa
191.
__________ is entrepreneurial behaviour by individuals and subunits within large organizations. A. Leadership. B. Innovation. C. Intrapreneurship. D. Change leadership. E. Creative activity. C KT Fa
192.
Organizations that use both mechanistic and organic designs to meet the needs for production efficiency and continued innovation are called __________. A. Adaptive structures. B. Simultaneous systems. C. Mechoganic structures. D. Innovative producers. E. Efficient innovators. B KT Fa
434 193.
Schermerhorn & Wright: Management A simultaneous “loose-tight” structure is characterized by all of the following properties EXCEPT: A. Work efforts are both centrally coordinated and highly interdependent. B. Both limited information-processing capability and expanded information-processing capability are present. C. Excels at simple/repetitive tasks and complex/unique tasks. D. Serves the interests of stockholders and employees. E. Good for production efficiency as well as innovation and creativity. D GT Fa
Human Resources 194.
A good organizational design provides people with the supporting structures they need to achieve __________ and __________ in their work. A. High performance high compensation. B. High performance satisfaction. C. Satisfactory performance satisfaction. D. Satisfaction effective interpersonal relationships. E. Self-management satisfaction. B GT Fa
195.
The __________ on people-structure relationships is that here should be a good “fit” between organizational structures and human resources. A. Human resource management view. B. Structural view. C. Systems view. D. Contingency view. E. Strategic view. D GT Fa
196.
The contingency view on people-structure relationships is that __________. A. All organizational structures should be designed to fit people who are effective team members and self-managers. B. Human resources and organizational structures should not be linked to each other. C. There should be a good “fit” between organizational structures and human resources. D. Competent people can work effectively in any type of structure. E. Organization structure should be eliminated since it constraints people’s creativity and freedom. C GT Fa
197.
An important human resource issue in organization design is __________. A. Fringe benefits. B. Unionization. C. Skill. D. Compensation. E. Hiring policies and procedures. C GT Fa
Chapter 11: Organizational Design and Work Processes
435
198.
In an age of information and knowledge workers, __________ designs with an emphasis on __________ are crucial. A. Functional employees’ specialized expertise. B. Organic employee empowerment. C. Mechanistic employee empowerment. D. Organic close supervision of employees. E. Divisional employee self-determination. B GT Fa
199.
Which statement about human resources and organizational design is inaccurate? A. The characteristics of individuals are important variables in organizational design. B. Modern management theory views people-structure relationships in a contingency fashion. C. There should be a good “fit” between organization structures and the people who staff them. D. Organic designs with their emphasis on empowerment are of little value in an age of information and knowledge workers. E. Organizational structure should support people’s attempts to achieve both high performance and satisfaction. D GT Fa
SUBSYSTEMS DESIGN AND INTEGRATION (STUDY QUESTION 3) 200.
__________ is a work unit or department headed by a manager and that operates as a smaller component of a larger and total organizational system. A. A subsystem. B. An upside-down pyramid. C. An organization chart. D. A workflow. E. A work process. A KT Fa
201.
Which statement concerning subsystems is incorrect? A. A subsystem is a single department or work unit, operating as a smaller component of a larger organization B. A subsystem is headed by a manager. C. A subsystem represents a smaller part of a larger organization. D. A subsystem is designed under different principles than the all-encompassing organization. E. A challenge of organizational design is to create subsystems that are mutually supporting. D GT Fa
202.
Based on their study of the relationships between environmental uncertainty and systems design, Paul Lawrence and Jay Lorsch found that __________in uncertain environments had more __________. A. Unsuccessful firms organic designs B. Successful firms organic designs. C. Successful firms mechanistic designs. D. Small firms small-batch production technology. E. Large firms long-linked technology. B GT Fa
436
Schermerhorn & Wright: Management
203.
Based on their study of the relationships between environmental uncertainty and systems design, Paul Lawrence and Jay Lorsch found that __________in certain environments had more __________. A. Unsuccessful firms mechanistic designs. B. Successful firms organic designs. C. Successful firms mechanistic designs. D. Small firms small-batch production technology. E. Large firms long-linked technology. C GT Fa
204.
In their study of systems and subsystems design, Paul Lawrence and Jay Lorsch found that __________. A. Successful firms had total system designs that matched their respective environments. B. Subsystems in the successful firms worked well together, even though some had very different structures. C. Subsystems in successful firms matched challenges of their respective subenvironments. D. All of the above. E. None of the above. D GT Fa
Subsystem Differentiation 205.
__________ is the degree of difference that exists between the internal components of the organization. A. Job diversity. B. Differentiation. C. Internal elabouration. D. Departmentalization. E. Structural elabouration. B KT Fa
206.
All of the following are common sources of differentiation among subsystems EXCEPT: A. Differences in time orientation. B. Differences in strategic orientation. C. Differences in objectives. D. Differences in interpersonal orientation. E. Differences in formal structure. B GT Fa
207.
If the manufacturing subsystem in a business firm has a more short-term action horizon than the research and development group, thus making it difficult for the two units to work together, they are experiencing differences in __________. A. Time orientation. B. Strategic orientation. C. Objectives. D. Interpersonal orientation. E. Formal structure. A GT Ap
Chapter 11: Organizational Design and Work Processes
437
208.
If production managers are cost conscious but marketing managers are volume conscious, making it difficult for them to agree on solutions to common problems, they are experiencing differences in __________. A. Time orientation. B. Strategic orientation. C. Objectives. D. Interpersonal orientation. E. Formal structure. C GT Ap
209.
If one unit manager has a strong “task” orientation, while a manager in another unit has a strong “people” orientation, integration between these units most likely will have to overcome differences in __________. A. Time orientation. B. Strategic orientation. C. Objectives. D. Interpersonal orientation. E. Formal structure. D GT Ap
210.
One manager’s strict operating rules and procedures limit another manager’s discretion in interunit negotiation and flexible problem solving. These two managers are experiencing differences in __________. A. Time orientation. B. Strategic orientation. C. Objectives. D. Interpersonal orientation. E. Formal structure. E GT Ap
Subsystem Integration 211.
__________ is the level of coordination achieved among an organization’s internal components. A. Collabouration. B. Internal control. C. Integration. D. Interdepartmental compromise. E. Internal elabouration. C KT Fa
212.
A basic problem in organizations that particularly affects subsystem design is that __________. A. As differentiation increases, integration also increases. B. As differentiation increases, coordination decreases but integration becomes easier. C. As differentiation increases, the need for integration increases but it becomes more difficult to accomplish. D. As integration increases, differentiation decreases and the need for coordination also decreases. E. As integration increases, the level of coordination achieved decreases the need for differentiation. C GT Ap
438
Schermerhorn & Wright: Management
213.
The use of rules and procedures, hierarchical referral, and planning work best as integrating mechanisms when __________. A. Differentiation is low. B. Differentiation is high. C. Process value is low. D. Process value is moderate. E. Process value is high. A MN Fa
214.
__________ integrating mechanisms work best when __________. A. Horizontal differentiation is low. B. Vertical differentiation is low. C. Horizontal differentiation is eliminated. D. Vertical differentiation is high. E. None of the above is correct. B MN Fa
215.
The use of direct contact between managers, liaison roles, task forces, teams, and matrix structures work best as integrating mechanisms when __________. A. Differentiation is low. B. Differentiation is high. C. Process value is low. D. Process value is moderate. E. Process value is high. B MN Fa
216.
__________ coordination mechanisms work best when __________. A. Horizontal differentiation is high. B. Vertical differentiation is high. C. Horizontal differentiation is low. D. Vertical differentiation is moderate to high. E. None of the above is correct. A GT Fa
217.
All of the following are ways to improve subsystems integration EXCEPT: A. Rules and procedures. B. Task forces. C. Matrix organizations. D. Divisional organizations. E. Liaison roles. D MN Fa
218.
Which of the following is NOT a mechanism for improving subsystems integration? A. Planning. B. Indirect contact among managers. C. Liaison roles. D. Hierarchical referral. E. Teams. B MN Fa
Chapter 11: Organizational Design and Work Processes
439
WORK PROCESS DESIGN (STUDY QUESTION 4) 219.
According to Michael Hammer, __________ is the systematic and complete analysis of work processes and the design of new and better ones. A. Process redesigning. B. Process reengineering. C. Process resurfacing. D. Process restructuring. E. Systems process analysis and design. B KT Fa
220.
The goal of process reengineering is to focus attention on all of the following EXCEPT: A. Improving customer satisfaction. B. Improving work performance. C. Breaking people and mindsets away from habits. D. Eliminating preoccupation with past accomplishments. E. Continuing the existing ways of doing things. E GT Fa
What Is a Work Process? 221.
__________ refer(s) to a group of related tasks that together create value for the customer. A. A job description. B. Job responsibilities. C. A work process. D. Job relationships. E. A task group. C KT Fa
222.
According to Michael Hammer, which of the following is NOT a key characteristic of a work process? A. Tasks are viewed as a group rather than in isolation. B. Everyone must share a common goal. C. The focus is on accomplishments, not activities. D. Everyone is rewarded equally. E. Customers are the ones who really count. D GT Fa
223.
__________ refers to the way work moves from one point to another in the manufacturing or service delivery processes. A. Work process. B. Workflow. C. Technical flow. D. Operations management. E. Work delivery plan. B KT Fa
440 224.
Schermerhorn & Wright: Management Which of the following is NOT a correct description of some attribute of workflow? A. Workflow refers to the movement of work from one point to another in a system. B. The various steps of a work process must be completed to achieve desired results, and they typically must be completed in a given order. C. An important starting point for reengineering is to diagram workflows. D. Each step in the workflow should be analyzed to determine whether or not it is adding value. E. Special attention should be given to eliminating the role of technology in the work process. E GT Fa
How to Reengineer Core Processes 225.
Through _________, an organization’s core processes are identified and carefully evaluated for their contributions to performance. A. Value chain analysis. B. Process value systems. C. Process value analysis. D. Alternative analysis control. E. Systems design. C KT Fa
226.
In __________, each step in the workflow is examined to determine if it is important, useful, and contributing to the value added. A. Value chain analysis. B. Process value systems. C. Alternative analysis control. D. Process value analysis. E. Systems design. D GT Fa
227.
In reengineering core processes, managers should do all of the following EXCEPT: A. Identify the core processes. B. Map the core processes with respect to workflows. C. Evaluate all tasks for the core processes. D. Identify the organization’s key strategic objectives. E. Search for ways to eliminate unnecessary tasks or work. D GT Fa
228.
In reengineering core processes, managers should do all of the following EXCEPT: A. Evaluate the validity of the organization’s mission. B. Evaluate all tasks for the core processes. C. Search for ways to eliminate unnecessary tasks or work. D. Search for ways to eliminate delays, errors, and misunderstandings. E. Search for efficiencies in how work is shared and transferred among people and departments. A GT Fa
Chapter 11: Organizational Design and Work Processes
441
Process-Driven Organizations 229.
__________ is/are central to Michael Hammer’s approach to process reengineering. A. Customers. B. Efficiency. C. Teamwork. D. All of the above. E. None of the above. D GT Fa
230.
An important goal of __________ is redesigning core processes to establish control for them with an identifiable group of people. A. Process reengineering. B. Cultural management. C. Corporate social responsibility. D. Mechanistic organization design. E. Bureaucracy. A GT Fa
231.
Focusing each person and the entire system on meeting customer needs and expectations is a major purpose of __________. A. Cultural management. B. Corporate social responsibility. C. Process reengineering. D. Mechanistic organization design. E. Bureaucracy. C GT Fa
232.
Eliminating duplication of work and systems bottlenecks is a prime objective of __________. A. Cultural management. B. Corporate social responsibility. C. Mechanistic organization design. D. Bureaucracy. E. Process reengineering. E GT Fa
233.
Reducing costs and increasing efficiency while creating the ever-present capacity for change is one of the prime objectives of __________. A. Cultural management. B. Corporate social responsibility. C. Process reengineering. D. Mechanistic organization design. E. Bureaucracy. C GT Fa
442
Schermerhorn & Wright: Management
Essay Questions 234.
What is organizational effectiveness and what approaches might managers use in evaluating it? Suggested Answer: Organizational effectiveness refers to sustainable high performance in using resources to accomplish mission and objectives. Organizational effectiveness can be evaluated with the following approaches: • • • •
Systems resource approach ⎯ focuses on inputs and defines effectiveness in terms of success in acquiring needed resources from the organization’s environment. Internal process approach ⎯ focuses on the transformation process and examines how efficiently resources are utilized to produce goods and/or services. Goal approach ⎯ focuses on outputs to measure achievement of key objectives. Strategic constituencies approach ⎯ focuses on the environment to analyze the organization’s impact on key stakeholders.
Organizational effectiveness can also be evaluated according to specific time-based criteria, including the following: • • • • • •
235.
Goal accomplishment (short-run focus). Performance efficiency in resource utilization (short-run focus). Stakeholder satisfactions (short-run focus). Adaptability in the face of changing environments (medium-run focus). Development of people and systems to meet new challenges (medium-run focus). Survival under conditions of uncertainty (long-run focus).
What is organizational design? What are the differences between bureaucratic (or mechanistic) designs and adaptive (or organic) designs? Suggested Answer: Organizational design is the process of aligning organizational structures to best serve the organization’s mission, strategy, and objectives. Key directions for structural change today involve a basic shift in attention away from a traditional emphasis on more vertical or authoritydriven structures to ones that are more horizontal and task-driven. In other words, there is a shift away from bureaucratic (or mechanistic) designs and toward adaptive (or organic) designs. Mechanistic designs are highly bureaucratic, with centralized authority, many rules and procedures, narrow spans of control, specialized tasks, few teams and task forces, and formal and impersonal coordination. High performance in rapidly changing environments is achieved by adaptive organizations that operate with a minimum of bureaucratic features and with cultures that encourage worker empowerment and participation. These organic designs are decentralized, with fewer rules and procedures, wider spans of control, shared tasks, many teams and task forces, and more informal and personal coordination. In short, organic designs reflect flatter organizations that empower workers.
Chapter 11: Organizational Design and Work Processes 236.
443
Explain the contingency approach to organization design, and why it is useful for managers. Suggested Answer: Good organizational design decisions reflect contingency thinking and should result in structures that satisfy situational demands and advance organizational effectiveness. The key contingency factors in organizational design are: environment, strategy, technology, organizational size and life cycle, and human resources. Structures should be created that are congruent with relevant situational and environmental demands. Doing so increases the likelihood that the organization will be successful and will survive. Failure to do so decreases the likelihood of effective and efficient operations as well as the prospect for business survival.
237.
Discuss subsystems design in relation to differentiation and integration. Suggested Answer: A subsystem is a department, work unit, or team that is headed by a manager and that performs specialized tasks within the larger organization. Subsystems designs should meet the challenges of their respective subenvironments. Thus, subsystems need to be appropriately differentiated to effectively accomplish their respective tasks, but also need to be appropriately integrated with one another to achieve the coordination that is essential for the overall effectiveness and efficiency of organizational operations. A basic organization design paradox is that increased differentiation among organizational subsystems creates the need for greater integration, but integration becomes more difficult to achieve as differentiation increases. Successful organizations have both differentiated structures and appropriate integrating mechanisms.
238.
Why would an organization want to engage in process reengineering? How can business processes be reengineered? Suggested Answer: Organizations engage in process engineering in order to: center control for the core processes with an identifiable group of people; focus the entire system on meeting customer needs and expectations; eliminate duplication of work and systems bottlenecks; reduce costs; and streamline operations efficiency. The reengineering of core business processes follows a six-step procedure. This procedure is: • • • • • •
Identify the core processes. Map the core processes with respect to workflows. Evaluate all tasks for the core processes. Search for ways to eliminate unnecessary tasks or work. Search for ways to eliminate delays, errors, and misunderstandings. Search for efficiencies in how work is shared and transferred among people and departments.
Chapter 12:
HUMAN RESOURCE MANAGEMENT True/False Questions CHAPTER INTRODUCTION 1.
A social contract reflects expectations of the employee-employer relationship. T KT Fa
2.
In modern businesses, the social contract for the individual is changing to emphasize skills, responsibility, continuous learning, and mobility. T GT Fa
3.
In modern businesses, the social contract for the organization is changing as employees are provided with development opportunities, challenging work assignments, the best in resource support, and incentive compensation T GT Fa
WHY PEOPLE MAKE THE DIFFERENCE (STUDY QUESTION 1) Valuing Human Capital 4.
Human capital refers to the economic value of people with job-relevant abilities, knowledge, experience, ideas, energies, and commitments. T KT Fa
5.
All organizations that are financially successful treat people as costs to be reduced. F
GT
Fa
6.
People are the most critical and valuable strategic assets an organization can have; consequently, people must be a top priority in any organization with high performance aspirations. T GT Fa
7.
Organizations that treat their members better seldom, if ever, experience greater profits, increased market value, and greater shareholder wealth. F GT Fa
8.
Successful organizations use human resource management practices that emphasize employment security, decentralization, and use of teams. T GT Fa
445
446 9.
Schermerhorn & Wright: Management Successful organizations use human resource management practices that emphasize good compensation, extensive training, and information sharing. T GT Fa
The Diversity Advantage 10.
Diversity brings to problem solving and strategy formulation an array of talents, perspectives, experiences, and worldviews that broaden any organization’s repertoire of skills and capabilities. T GT Ap
11.
Establishing a diversity advantage means that organizations should make it a priority to create the kind of environment that will attract the best new talent and enable employees to make their fullest contribution. T GT Ap
12.
In order to achieve a diversity advantage, managers should look for ambition, energy, work ethic, knowledge, creativity, and motivation in any employee. T GT Fa
13.
Using the perspective of diversity as a competitive advantage, collegiality, collabourativeness, sincerity, integrity, judgment, and maturity are qualities that managers should look for in any employee. T GT Fa
14.
Managers who are committed to building high performance work environments only look in selected places for people who are collegial, mature, and creative. F GT Fa
15.
The best employees and managers in progressive organizations know that diversity contributes little to competitive advantage. F GT Fa
HUMAN RESOURCE MANAGEMENT (STUDY QUESTION 2) Human Resource Management Process 16.
Human resource management is the process of attracting, developing, and maintaining a talented and energetic workforce. T KT Fa
17.
The basic goal of human resource management is building organizational performance capacity by raising human capital to ensure that highly capable and enthusiastic people are always available. T GT Fa
18.
The responsibility of developing a quality workforce involves human resource planning, recruitment, and selection. F GT Fa
Chapter 12: Human Resource Management
447
19.
The responsibility of maintaining a quality workforce involves employee orientation, training and development, and performance appraisal. F GT Fa
20.
The responsibility of attracting a quality workforce encompasses career development, work-life balance, compensation and benefits, retention and turnover, and labour-management relations. F GT Fa
21.
Human resource specialists are increasingly important in attracting, developing, and maintaining a quality workforce in an environment complicated by legal issues, labour shortages, economic turmoil, and changing corporate strategies. T GT Fa
Strategic Human Resource Management 22.
Strategic human resource management mobilizes human capital through the HRM process to best implement organizational strategies. T KT Fa
23.
The HRM function being headed by a human resources director reporting to an executive vice president is an important indicator that human resource management is truly strategic in an organization. F GT Ap
Laws Against Employment Discrimination 24.
Discrimination occurs when someone is denied a job or a job assignment for reasons that are not job relevant. T KT Fa
25.
In Canada, human resource management practices are affected by the Canadian Human Rights Act. T GT Fa
26.
Race, religion, political belief and criminal conviction are prohibitied grounds for discrimination in all provinces of Canada F GT Fa
27.
The Canadian Human Rights Act makes it illegal for employers to discriminate on any grounds. F GT Fa
28.
In Canada, human resource management practices are affected by various laws that (a) prohibit pay differences for men and women doing equal work, and (b) establish mandatory safety and health standards in workplaces. T GT Fa
448
Schermerhorn & Wright: Management
29.
In Canada, human resource management practices are affected by various laws that (a) prohibit discrimination in employment against persons over 40 years of age, and (b) encourage and promote mandatory retirement. F GT Fa
30.
The Canadian Human Rights Act guarantees people the right to employment and advancement without regard to race, color, national origin, religion, gender, age, or mental or physical ability. T KT Fa
31.
Each province has the right to impose remedies on organizations that do provide a timely resolution to any discrimination charges brought against them. T KT Fa
32.
In Ontario, it is acceptable to discriminate against someone because of their political beliefs. T GT Ap
33.
Employment equity gives preference to four designated groups—Aboriginals, women, visible minorities and people with physical/mental disabilities. T GT Ap
34.
The Employment Equity Act applies only to the federal government. F GT Fa
35.
Equal employment opportunity does not restrict an employer’s right to establish bona fide occupational qualifications. T GT Fa
36.
Bona fide occupational qualifications are criteria for employment that can be clearly justified as being related to a person’s capacity to perform a job. T KT Fa
37.
The use of a bona fide occupational qualification based on gender is not allowed under any circumstance. F GT Ap
38.
The use of a bona fide occupational qualification based on age or religion may be legal but is very difficult to support. T GT Ap
39.
One of the arguments against the Employment Equity Act include that it supports reverse discrimination. T GT Fa
40.
Banks and broadcasters must adhere to The Employment Equity Act. T GT Fa
Chapter 12: Human Resource Management
449
41.
The Employment Equity Act gives preference to people under the age of 18. F GT Fa
42.
The purpose of the Employment Equity Act is achieve equality in all Canadian workplaces. F GT Fa
Current Legal Issues in HRM 43.
Human resource management must be accomplished within the framework of government laws and regulations. T GT Fa
44.
In conducting an interview, the following questions may be legally asked of a job candidate: Would you be willing to relocate? Are you over 18? Have you ever been convicted of a crime that is relevant to the performance of this job? Are you authorized to work in the United States? T MN Ap
45.
During job interviews, managers should ask questions regarding time off for religious holidays and childcare in order to properly plan department schedules. F MN Ap
46.
Sexual harassment occurs when people experience conduct or language of a sexual nature that affects his/her employment situation. T KT Fa
47.
Organizations should have clear sexual harassment policies in place along with fair and equitable procedures for implementing them. T GT Fa
48.
Comparable worth refers to the notion that persons performing jobs of similar importance should be paid at comparable levels. T KT Fa
49.
Independent contractors are hired on temporary contracts and are not part of the organization’s permanent workforce. T KT Fa
50.
Permatemps are independent contractors that are engaged regularly by the same organization. T GT Fa
51.
The right of employees to have privacy on the job is known as workplace privacy. T KT Fa
52.
Employer practices in monitoring employees’ work performance and behaviour can become invasive and cross legal and ethical lines. T GT Ap
450
Schermerhorn & Wright: Management
53.
Employer practices in monitoring employees’ work performance and behaviour requires the employees’ permission. F GT Ap
54.
Until the legal status of employee surveillance through the use of information technology is clarified, the best advice for everyone is to assume your employer will protect your privacy and will let you know whenever you are being monitored. F GT Ap
ATTRACTING A QUALITY WORKFORCE (STUDY QUESTION 3) 55.
Before a company can begin the process of attracting a qualified workforce, it must have a clear understanding of the jobs to be done, know what talents are required to perform the jobs, and have systems in place to excel at employee recruitment and selection. T GT Fa
Human Resource Planning 56.
Human resource planning is the process of analyzing an organization’s human resource needs and determining how to best fill them. T KT Fa
57.
Job analysis is the orderly study of job facts to determine what is done, when, where, how, why, and by whom in existing jobs or potential new jobs. T KT Fa
58.
A job analysis provides information that can be used to develop or update job descriptions and job specifications T GT Fa
59.
A written statement detailing the duties and responsibilities of a job is called a job specification. F KT Fa
60.
The qualifications required of any job applicant are called job descriptions. F KT Fa
61.
Human resource planning is a five-step process that reviews organization mission, objectives, and strategies; reviews human resource objectives and strategies; assesses current human resources; forecasts human resource needs; and develops and implements human resource plans to match people and job openings. T GT Fa
The Recruiting Process 62.
Recruitment is a set of activities designed to attract a qualified pool of job applicants to an organization. T KT Fa
Chapter 12: Human Resource Management
451
63.
The three steps in the typical recruitment process are advertising job vacancies, making preliminary contacts, and initial screening. T GT Fa
64.
In external recruitment, job candidates are sought from outside the hiring organizations, whereas with internal recruitment, job candidates are sought from among existing employees. T GT Fa
65.
The potential disadvantages of external recruitment include bringing in outsiders with fresh perspectives, providing access to specialized expertise not otherwise available from current employees, and providing access to work experience not otherwise available from current employees. F GT Ap
66.
The potential advantages of internal recruitment include being less expensive than external recruitment, dealing with people whose performance records are well established, and showing current employees they can advance by working hard. T GT Ap
67.
Traditional recruitment and realistic job previews reflect different responses to the important recruitment issues of honesty and full information. T GT Ap
68.
Realistic job previews seek to “sell” the firm to outsiders by communicating only the most positive features of the job to potential candidates. Traditional recruitment seeks to provide the candidate with complete information regarding the actual job and organizational features before the job is accepted. F KT Fa
69.
One of the major goals of realistic job previews is to promote job satisfaction and reduce turnover. T GT Ap
How to Make Selection Decisions 70.
Selection is the process of choosing, from a pool of applicants, the person or persons who offer the greatest performance potential. T KT Fa
71.
Recruiting is the six-step process that involves completion of a formal application, interviewing, testing, reference checks, physical examination, and final analysis and decision to hire or reject. F GT Fa
72.
Legitimate reasons for rejecting a job applicant in the selection process include an applicant’s deficient qualifications, low overall potential, or lack of physical fitness for the job. T GT Fa
73.
An application form declares an individual to be a formal candidate for a job and documents the applicant’s personal history and qualifications. T GT Fa
452
Schermerhorn & Wright: Management
74.
Interviews can be potential stumbling blocks in the selection process, particularly if the interviewer asks the wrong things, talks too much, or lets personal biases prevent an applicant’s capabilities from being fully considered. T GT Fa
75.
Interviews can be difficult for job applicants, if the applicants are unprepared, are poor communicators, or lack interpersonal skills. T GT Fa
76.
To succeed in a telephone interview, an applicant should be prepared ahead of time, take the call in private, dress professionally, practice an interview voice, have reference materials handy, have a list of questions ready, and ask what happens next. T MN Ap
77.
Any selection device should be both reliable and valid. T GT Fa
78.
A selection device is said to be reliable when it measures exactly what it intends to, relative to the job specification F KT Fa
79.
A selection device is said to be valid when it yields the same results over time if taken by the same person F KT Fa
80.
An assessment center is an employment test that evaluates a person’s potential by observing his or her performance in experiential activities that simulate daily work activities. T KT Fa
81.
Work modeling has applicants work on actual job tasks while being graded by observers on their performance. F KT Fa
82.
Reference checks are inquiries to previous employers, academic advisors, co-workers, and/or acquaintances regarding the qualifications, experience, and past work records of a job applicant. T GT Fa
83.
Reference checks can be used to find out important background information about job applicants that was not discovered in the application, interviewing, or testing steps. A GT Fa
84.
In the selection process, a physical examination helps ensure that the applicant is physically capable of fulfilling job requirements but does not provide the basis for enrolling the applicant in health-related fringe benefits programs nor is it used to conduct employee drug testing. F GT Ap
Chapter 12: Human Resource Management
453
85.
The best selection decisions are most likely made when responsibility for analyzing all the data and making the final decision to hire or reject an applicant rests with the applicant’s prospective manager or team leader, potential coworkers, and the human resources staff T GT Fa
86.
The best selection decisions are most likely to be made by the human resources staff. F GT Fa
DEVELOPING A QUALITY WORKFORCE (STUDY QUESTION 4) 87.
The intent of socialization in the human resource management process is to help newcomers fit into the work environment in a way that furthers their development and performance potential. T GT Fa
88.
Socialization is the process of influencing the expectations, behaviour, and attitudes of new employees in a manner considered desirable by the organization. T KT Fa
Employee Orientation 89.
Socialization is a set of activities designed to familiarize new employees with their jobs, with coworkers, and with the organization as a whole. Orientation is the process of influencing the expectations, behaviours, and attitudes of a new employee in a manner considered desirable by the organization. F KT Fa
90.
Employee orientation typically involves clarifying the organization’s mission and culture, explaining operating objectives and job expectations, and communicating policies and procedures. T GT Fa
91.
The first six months of employment in a given organization is crucial because it is during this time that original performance expectations are set and patterns for future employee-employer relationships are established. T GT Ap
92.
The primary intent of orientation is to enable new employees complete job-related paperwork. F GT Ap
93.
When orientation is neglected, even well intentioned and capable people can learn inappropriate attitudes and behaviours. T GT Ap
Training and Development 94.
Training is a set of activities that help people acquire and improve job-related skills. T KT Fa
454
Schermerhorn & Wright: Management
95.
Job rotation is a training device that offers opportunities for persons to spend time in different jobs and expand their range of job capabilities. T GT Fa
96.
When an experienced person provides performance advice to another person, the on-the-job training method known as coaching is being used. T KT Fa
97.
The act of sharing experiences and insights between a senior person and a new or early-career employee is known as management development. F KT Fa
98.
A training technique that demonstrates, through day-to-day personal behaviour, what is expected of others is called performance management. F KT Fa
99.
Management development involves training that is specifically targeted to improve a person’s knowledge and skills in the fundamentals of management and leadership. T KT Fa
100.
Beginning managers will likely benefit from management development programs that emphasize team leadership and communication. T GT Ap
101.
Top managers will likely benefit from management development programs that focus on developing a better understanding of multifunctional viewpoints. F GT Ap
102.
Middle managers will likely benefit from management development programs that sharpen decision-making and negotiating skills and expand awareness of corporate strategy and direction. F GT Ap
Performance Management Systems 103.
A performance management system sets standards, assesses results, and plans actions to improve future performance. B KT Fa
104.
Performance appraisal is the process of formally assessing someone’s work accomplishments and providing feedback. T KT Fa
105.
The development purpose of performance appraisal is intended to let people know where they stand relative to performance objectives and standards. F GT Fa
106.
The evaluation purpose of performance appraisal is intended to assist people in their training and continued personal development. F GT Fa
Chapter 12: Human Resource Management
455
107.
A manager acts in a judgmental role when he or she gives a direct evaluation of another person’s accomplishments, and in a counseling role when he or she focuses on a subordinate’s developmental needs. T GT Fa
108.
Managers should keep written documentation of performance appraisals in order to back up any contested evaluations. T GT Ap
109.
A manager is using the behaviourally anchored rating scale method of performance appraisal when the employee’s performance is evaluated using a checklist of traits or characteristics that are related to performance in a given job. F KT Fa
110.
A graphic rating scale is a performance appraisal method that rates the actual behaviours that exemplify various performance levels. F KT Fa
111.
The critical-incident technique of performance appraisal involves keeping a running log or inventory of effective and ineffective job behaviours. T KT Fa
112.
360º feedback is a performance appraisal method that uses a rank ordering, paired comparisons, or a forced distribution to formally compare one person’s performance with that of one or more others. F KT Fa
113.
In the paired comparisons method of multiperson comparison, all employees being rated are arranged in order of performance achievement. F GT Fa
114.
In the rank ordering method of multiperson comparison, each person is formally compared with every other person and is rated as either the superior or weaker member of the pair. F GT Fa
115.
In the forced distribution method of multiperson comparison, each person is placed into a frequency distribution that requires a certain percentage of employees to fall into specific performance classifications. T GT Fa
116.
An appraisal method that involves superiors, subordinates, peers, and even internal and external customers in the evaluation process is known as the multiperson comparison method. F KT Fa
456
Schermerhorn & Wright: Management
MAINTAINING A QUALITY WORKFORCE (STUDY QUESTION 5) 117.
A recent survey conducted by the Society for Human Resource Management found that the most effective tools for maintaining a quality workforce are good health care benefits, competitive salaries, flexible work schedules and personal time off, and opportunities for training and development. T GT Fa
Career Development 118.
A career is a sequence of jobs and work pursuits that constitute what a person does for a living. T
KT
Fa
119.
Career paths may be pursued internally with the same employer or externally with various employers. T GT Fa
120.
Career planning is a process of systematically matching career goals and individual capabilities with opportunities for their fulfillment. T KT Fa
121.
In planning their careers, people should ask questions such as: “Who am I?” “Where do I want to go?” “How do I get there?” T GT Ap
122.
A well-managed career should have a carefully thought-out plan that establishes general direction with an eye for opportunity along the way. T GT Ap
123.
A career plateau is a position from which someone is unlikely to move to a higher level of work responsibility. T KT Fa
124.
The common reasons for career plateaus are personal choice, limited abilities, and lack of opportunity. T GT Ap
Work-Life Balance 125.
The term “work-life balance” deals with how people balance the demands of careers with demands of their personal and family needs. T KT Fa
126.
Work-life balance concerns involve single parents who must balance complete parenting responsibilities with a job but not dual-career couples who must balance the career needs and opportunities of each partner F GT Ap
Chapter 12: Human Resource Management
457
Compensation and Benefits 127.
Incentive compensation is a salary or hourly wage paid to an individual. F KT Fa
128.
Base compensation can assist the organization by making it a more desirable place of employment, attracting the right people for the right jobs, and retaining qualified employees. T GT Ap
129.
Base compensation can assist the organization by eliminating the need for fringe benefits programs. F GT Ap
130.
Fringe benefits refer to the additional nonwage or nonsalary forms of compensation that are provided to an organization’s workforce. T KT Fa
131.
Fringe benefits costs are usually less than 20 percent of a typical worker’s earnings. F GT Ap
132.
The constantly rising cost of healthcare benefits is a major employer concern, and consequently employers are encouraging healthy lifestyles for their employees as one way of helping to contain these costs. T GT Ap
133.
A flexible benefits program allows employees to choose a set of benefits within a certain dollar amount. T KT Fa
134.
Family-friendly benefits help employees to achieve a better balance between their work and nonwork responsibilities. T KT Fa
135.
Employee assistance programs help employees deal with troublesome personal problems. T KT Fa
Retention and Turnover 136.
Replacement relates to the management of promotions, transfers, retirements, and terminations. T GT Fa
137.
Replacement both concludes and recycles the human resource management process. Replacement is an opportunity to review human resource plans T GT Ap
138.
Replacement always entails costs, but rarely offers benefits. F GT Ap
458
Schermerhorn & Wright: Management
139.
Promotions and transfers represent replacement decisions that retain employees but move them from their current jobs. T GT Fa
140.
Promotion is a movement to a higher-level position whereas transfer is a movement to a different job at a similar level of responsibility. T GT Fa
141.
Since the prospect of retirement raises fears and apprehensions for many people, many organizations provide special assistance to pre-retirement employees. T GT Fa
142.
The most extreme way of correcting a mismatch between the employee and the organization is termination. T GT Fa
Labour-Management Relations 143.
Labour unions are organizations that deal with employers on behalf of the workers. T KT Fa
144.
Labour contracts specify the rights and obligations of employees and management with respect to wages, work hours, work rules, seniority, hiring, grievances, and other conditions of employment. T KT Fa
145.
Collective bargaining is the process of negotiating, administering, and interpreting labour contracts. T KT Fa
146.
The Canadian Labour Congress protects employers from unfair labour practices by unions and allows workers to decertify unions. F GT Fa
147.
The Canada Labour Code protects employees by recognizing their rights to join unions and engage in union activities. F GT Fa
148.
The Canada Labour Code and provincial labour relations acts provide guidelines for employers and employees regarding union certification, negotiation, and management of collective agreements. T GT Fa
149.
Union members can create difficulties for management by refusing to come to work, refusing to buy employer’s products or services, asking other people to not buy the employer’s products or services, or posting and carrying signs complaining about the employer’s treatment of workers. T GT Ap
Chapter 12: Human Resource Management 150.
459
Managers can create difficulties for unions by hiring nonunion workers to do strikers’ jobs or by getting a court order requiring that strikers come back to work. T GT Ap
Multiple Choice Questions CHAPTER INTRODUCTION 151.
A(n) __________ reflects expectations of the employee-employer relationship. A. Expected value contract. B. Social contract. C. Job analysis. D. Bona fide occupational qualification. E. Work-life balance agreement. B KT Fa
152.
In modern businesses, the social contract for the individual is changing in all of the following ways EXCEPT: A. An emphasis on the individual’s skills. B. An emphasis on the individual’s mobility. C. An emphasis on the individual’s loyalty. D. An emphasis on the individual’s responsibility. E. An emphasis on the individual’s continuous learning. C GT Fa
153.
In modern businesses, the social contract for the organization is changing in all of the following ways EXCEPT: A. Providing employees with development opportunities. B. Providing employees with challenging work assignments. C. Providing employees with the best in resource support. D. Providing employees with effective means for conflict resolution. E. Providing employees with incentive compensation. D GT Fa
WHY PEOPLE MAKE THE DIFFERENCE (STUDY QUESTION 1) Valuing Human Capital 154.
The economic value of people with job-relevant abilities, knowledge, experience, ideas, energies, and commitments is known as __________. A. Job resources. B. Human capital. C. Natural resources. D. Economic capital. E. Intellectual reserves. B KT Fa
460
Schermerhorn & Wright: Management
155.
Which of the following statements does NOT accurately describe how human resource management should be approached in modern organizations? A. People are the most critical and valuable strategic asset an organization can have. B. People should be viewed as intelligent, motivated, trustworthy individuals. C. People should be viewed as costs to be reduced. D. Ineffective workplaces have human resource policies and practices that promote poor treatment of employees. E. Effective companies have a strong commitment to a positive human resource philosophy. C GT Ap
156.
Which one of the following statements does NOT provide an accurate description of why people make a difference in organizations? A. People must be a top priority in any organization with high performance aspirations. B. Organizations that treat their members better will have favorable economic results in terms of increased sales and reduced employee turnover. C. Organizations that treat their members better seldom, if ever, experience greater profits, increased market value, and greater shareholder wealth. D. Successful organizations use human resource management practices that emphasize employment security, decentralization, and use of teams. E. Successful organizations use human resource management practices that emphasize good compensation, extensive training, and information sharing. C GT Fa
157.
Which of the following statements does NOT accurately describe how human resource management should be approached in modern organizations? A. People are critical and valuable strategic assets. B. People are key to organizational success and failure. C. People should be viewed as costs to be reduced. D. The human resource practices of successful organizations include employment security, decentralization, use of teams, good compensation, extensive training, and information sharing. E. Positive human resource policies contribute to higher organizational performance. C GT Fa
The Diversity Advantage 158.
Which of the following statements provides the least accurate characterization of establishing a diversity advantage? A. Establishing a diversity advantage helps organizations avoid pressures from an uncertain environment. B. Establishing a diversity advantage helps provide a competitive edge where organizations face continuous pressures for change and performance success in conditions of great uncertainty. C. Establishing a diversity advantage means finding the best talent available. D. Establishing a diversity advantage means finding ways to allow diversity to help create high performance organizations. E. Establishing a diversity advantage means that organizations should make it a priority to create the kind of environment that will attract the best new talent and enable employees to make their fullest contribution. A GT Ap
Chapter 12: Human Resource Management
461
159.
Using the perspective of diversity as a competitive advantage, which of the following qualities would you look for in anyone who works for you? A. Work ethic. B. Ambition and energy. C. Knowledge, creativity, and motivation. D. All of the above. E. None of the above. D GT Fa
160.
Using the perspective of diversity as a competitive advantage, which of the following qualities would you look for in anyone who works for you? A. Collegiality and collabourativeness. B. Sincerity and integrity. C. Judgment and maturity. D. A and B. E. A, B, and C. E GT Fa
161.
Which of the following statements is incorrect? A. Anyone who works for you should have knowledge, creativity, motivation, sincerity, curiosity, maturity, and integrity. B. People who possess workplace qualities such as knowledge, creativity, ambition and energy, motivation, and sincerity can be found everywhere. C. Job-relevant talent is not restricted because of anyone’s race, gender, or religion. D. The best employees and managers know that people are an important strategic asset. E. The best employees and managers in progressive organizations know that diversity contributes little to competitive advantage. E GT Fa
HUMAN RESOURCE MANAGEMENT (STUDY QUESTION 2) Human Resource Management Process 162.
__________ is the process of attracting, developing, and maintaining a talented and energetic workforce. A. Strategic workforce management. B. Human resource strategizing. C. Human resource management. D. Human mission matching. E. Organizational workforce development. C KT Fa
462
Schermerhorn & Wright: Management
163.
The basic goal of __________is building organizational performance capacity by raising human capital to ensure that highly capable and enthusiastic people are always available. A. Strategic workforce management. B. Human resource strategizing. C. Human resource management. D. Human mission matching. E. Organizational workforce development. C GT Fa
164.
The responsibility of __________ involves human resource planning, recruitment, and selection. A. Developing a quality workforce. B. Attracting a quality workforce. C. Planning for a quality workforce. D. Staffing a quality workforce. E. Maintaining a quality workforce. B GT Fa
165.
The responsibility of __________ involves employee orientation, training and development, and performance appraisal. A. Developing a quality workforce. B. Attracting a quality workforce. C. Planning for a quality workforce. D. Staffing a quality workforce. E. Maintaining a quality workforce. A GT Fa
166.
The responsibility of __________ encompasses career development, work-life balance, compensation and benefits, retention and turnover, and labour-management relations. A. Developing a quality workforce. B. Attracting a quality workforce. C. Planning for a quality workforce. D. Staffing a quality workforce. E. Maintaining a quality workforce. E GT Fa
167.
__________ are increasingly important in attracting, developing, and maintaining a quality workforce in an environment complicated by legal issues, labour shortages, economic turmoil, and changing corporate strategies. A. Human resource specialists. B. Line managers. C. First-level supervisors. D. Team leaders. E. Team members. A GT Fa
Chapter 12: Human Resource Management
463
Strategic Human Resource Management 168.
__________ mobilizes human capital through the HRM process to best implement organizational strategies. A. Management by objectives. B. Strategic management. C. Strategic human resource management. D. Human portfolio analysis. E. Strategic organizational design. C KT Fa
169.
One important indicator that human resource management is truly strategic in an organization is when the HRM function is headed by a __________. A. Human resources director reporting to a middle-level manager. B. Middle-level manager reporting to an upper-level executive. C. Mid-level management team. D. Human resources manager reporting to an executive vice president. E. Senior executive reporting directly to the chief executive officer. E GT Ap
Laws Against Employment Discrimination 170.
__________ occurs when criteria that are not job-relevant are used in making hiring decisions or job assignments. A. Equal employment opportunity. B. Employment discrimination. C. Affirmative action. D. Job prejudice. E. Managerial bias. B KT Fa
171.
In Canada, human resource management practices are affected by all of the following laws EXCEPT: A. The Canadian Human Rights Act. B. The Employment Equity Act. C. The Civil Employment of Minorities Act. D. The British Columbia Human Rights Act. E. The.Ontario Human Rights Act C GT Fa
172.
Which of the following laws makes it illegal to discriminate in hiring, promotion and termination of prohibited grounds? A. Canada Labour Code. B. Canadians With Disabilities Act of 1990. C. Canadian Human Rights Code. D. Occupational Safety and Health Act of 1970. E. Employment Equity Act. C GT Fa
464
Schermerhorn & Wright: Management
173.
__________ prohibits discrimination in employment based on race, color, religion, sex, or national origin. A. Canadian Human Rights Code B. Canadians With Disabilities Act of 1990. C. Canadian Labour Code. D. Employment Equity Act. E. Age Discrimination in Employment Act. A GT Fa
174.
In the Canada, human resource management practices are affected by various laws that do all of the following EXCEPT: A. Prohibit pay differences for men and women doing equal work. B. Establish mandatory safety and health standards in workplaces. C. Prohibit discrimination against a qualified individual on the basis of disability. D. Prohibit discrimination in employment against persons over 40 years of age. E. Encourage and promote all Canadians to speak English and French. E GT Fa
175.
In Canada, __________ guarantee(s) people the right to employment and advancement without regard to race, color, national origin, religion, gender, age, or mental or physical ability. A. The Canadian Human Rights Code. B. Fairness in business. C. Minority action programs. D. The Constitution. E. The Charter of Rights and Freedoms. A KT Fa
176.
Which statement concerning the Employment Equity Act is FALSE? A. The act applies to the federal government. B. The act is directed at race and gender discrimination only. C. The act is designed to protect people from employment discrimination. D. Failure to comply with the act can put a firm in jeopardy in the courts. E. The act applies to all federal departments and agencies. B GT Ap
177.
__________ is an effort to give preference in employment to women and minority group members. A. Affirmative fairness in business. B. A minority action program. C. The Employment Equity Act. D. The Canadian Charter of Rights and Freedoms. E. A social justice commandment. C KT Fa
Chapter 12: Human Resource Management
465
178.
Which statement concerning the Employment Equity Act is FALSE? A. The Employment Equity Act’s purpose is to achieve equality in the workforce. B. The Employment Equity Act applies to Aboriginals. C. The Employment Equity Act applies to people over the age of 65. D. The Employment Equity Act applies to visible minorities. E. The Employment Equity Act applies to women. C GT Ap
179.
Which of the following statements about the Employment Equity Act is FALSE? A. The Employment Equity Act applies only to federal government departments and agencies. B. The Employment Equity Act applies to private sectors empoyers that are governed by federal legislation. C. The Rmployment Equity Act applies to banks and broadcasters. D. The Employment Equity Act applies to transportation companies. E. The Employment Equity Act applies to Aboriginal band councils. A GT Fa
180.
__________ are criteria for employment that can be clearly justified as being related to a person’s capacity to perform a job. A. Job duties. B. Position descriptions. C. Performance capacity qualifications. D. Bona fide occupational qualifications. E. Non-discriminatory job specifications. D KT Fa
181.
The use of a bona fide occupational qualification that is based on __________ is not allowed under any circumstance. A. Race. B. Color. C. Gender. D. A and B. E. A and C. D GT Ap
182.
The use of a bona fide occupational qualification based on __________ may be legal but are very difficult to support. A. Gender. B. Age. C. Religion. D. All of the above. E. None of the above. D GT Ap
466
Schermerhorn & Wright: Management
183.
Gender can be a(n) __________ for a job of modeling clothing. A. Irrelevant qualification. B. Bona fide occupational qualification. C. Discriminatory qualification. D. Equal employment criterion. E. Affirmative criterion. B GT Ap
184.
Which of the following are bona fide occupational requirements?. A. Requiring a female for a job as modeling clothing. B. Requiring a male for a part in a play. C. Requiring a priest to be Catholic. D. All of the above. E. None of the above. D GT Fa
185.
Which of the following are acceptable questions for potential employment? A. How old are you? B. Are you able to work on Sunday? C. Where were you born? D. Are you married? E. How many children do you have? B GT Fa
186.
Which of the following are prohibited grounds for discrimination in all provinces? A. Source of income. B. Family status. C. Physical or mental disabilities. D. Criminal conviction. E. Pardoned conviction. C GT Fa
187.
Which of the following are not prohibited grounds for discrimination in all provinces? A. Race. B. Dependence on alcohol. C. Religion. D. Sex. E. Marital status. B GT Fa
Chapter 12: Human Resource Management
467
Current Legal Issues in HRM 188.
In interviewing a job candidate, which of the following questions is not illegal to ask? A. What is the ethnic origin of your name? B. Do you have any disabilities? C. Have you ever been arrested? D. Are you willing to travel as needed? E. Are you married? D MN Ap
189.
In an interview, all of the following questions may be legally asked of a job candidate EXCEPT: A. Would you be willing to relocate? B. Are you over 18? C. Have you ever been convicted of a crime that is relevant to the performance of this job? D. Are you authorized to work in the United States? E. Do you have any disabilities? E MN Ap
190.
Current legal issues in human resource management include all of the following EXCEPT: A. Sexual harassment in the workplace. B. Comparable worth of jobs. C. Liability for goods produced by careless employees. D. Employee entitlements of part-time workers and independent contractors. E. Workplace privacy. C GT Fa
191.
__________ occurs when a person experiences conduct or language of a sexual nature that affects his/her employment situation. A. A normal work experience. B. Sexual harassment. C. Gender interaction. D. Comparable worth. E. Perceptual distortion. B KT Fa
192.
Pay equity provides that __________ and __________ in the same organization should be paid equally for doing equal work in terms of required skills, responsibilities, and working conditions. A. Middle-level managers lower-level managers. B. Managers production workers. C. Service workers production workers. D. Women men. E. Team leaders team members. D GT Fa
468
Schermerhorn & Wright: Management
193.
__________ refers to the notion that persons performing jobs of similar importance should be paid at comparable levels. A. Pay similarity. B. A nondiscriminatory wage scale. C. Equal compensation access. D. A comparable job assignment. E. Comparable worth. E KT Fa
194.
__________ are hired on temporary contracts and are not part of the organization’s permanent workforce. A. Comparable workers. B. Equal opportunity contractors. C. Bona fide occupational groups. D. Qualified part-timers. E. Independent contractors. E KT Fa
195.
Which of the following statements is incorrect? A. The legal status and employment entitlements of part-time workers and independent contractors are being debated. B. Independent contractors are hired as temporary workers who work on a contract to an organization and are not part of its permanent workforce. C. Some independent contractors are engaged regularly by the same firm, thus raising the question of whether they are really independent contractors or employees. D. All of the above are correct statements. E. None of the above is a correct statement. D GT Fa
196.
__________ are independent contractors that are engaged regularly by the same organization. A. Comparable workers. B. Permatemps. C. Equal opportunity contractors. D. Bona fide occupational groups. E. Qualified part-timers. B GT Fa
197.
The right of employees to have privacy on the job is known as __________. A. An employer privacy obligation. B. A workplace bill of rights. C. Workplace privacy. D. A human resource information plan. E. The obligatory doctrine of enterprise privacy. C KT Fa
Chapter 12: Human Resource Management
469
198.
Which of the following statements regarding employer practices in monitoring employees’ work performance and behaviour is NOT correct? A. Monitoring employees’ work performance and behaviour is an acceptable employer practice B. Employer practices in monitoring employees’ work performance and behaviour can become invasive. C. Employer practices in monitoring employees’ work performance and behaviour can cross legal and ethical lines. D. Employer practices in monitoring employees’ work performance and behaviour requires the employees’ permission. E. Employer practices in monitoring employees’ work performance and behaviour is facilitated by information technology. D GT Ap
199.
Until the legal status of employee surveillance through the use of information technology is clarified, the best advice for everyone is __________. A. Assume your employer will protect your privacy. B. Assume you have no privacy at work. C. Assume your employer will let you know whenever you are being monitored. D. A and C. E. A, B, and C. B GT Ap
ATTRACTING A QUALITY WORKFORCE (STUDY QUESTION 3) 200.
Before a company can begin the process of attracting a qualified workforce it must __________. A. Have a clear understanding of the jobs to be done. B. Have systems in place to excel at employee recruitment and selection. C. Know what talents are required to perform the jobs. D. A and B. E. A, B, and C. E GT Fa
Human Resource Planning 201.
__________ is the process of analyzing an organization’s human resource needs and determining how to best fill them.. A. Management by objectives. B. Strategic management. C. Human resource planning D. Identifying job factors for all positions. E. Placing new employees on the organization chart. C KT Fa
470
Schermerhorn & Wright: Management
202.
A __________ is the orderly study of job facts to determine what is done, when, where, how, why, and by whom in existing jobs or potential new jobs. A. Job analysis. B. Job description. C. Job specification. D. Job audit. E. Job evaluation. A KT Fa
203.
A job analysis provides useful information that can be used to develop or update __________ and _________. A. Job specifications paired comparisons. B. Reliability performance appraisals. C. Work-life balance career plateauing. D. Job descriptions job specifications. E. Job descriptions job interviews. D GT Fa
204.
A written statement detailing the duties and responsibilities of a job is called a __________. A. Job analysis. B. Job specification. C. Job description. D. Job inventory chart. E. Job audit. C KT Fa
205.
The qualifications required of any job applicant are called __________. A. Performance standards. B. Job audits. C. Job analyses. D. Job descriptions. E. Job specifications. E KT Fa
206.
Human resource planning is a five-step process that begins with reviewing the organization’s mission, objectives, and strategies. Which of the following is NOT one of the remaining four steps? A. Reviewing human resource objectives and strategies. B. Assessing current human resource needs. C. Designing and redesigning jobs to meet human resource needs. D. Forecasting human resource needs. E. Developing and implementing human resource plans to match resources with needs. C GT Fa
Chapter 12: Human Resource Management 207.
471
Which of the following represents the correct order of steps in strategic human resource planning? A. Review human resource objectives and strategies; review organization mission, objectives, and strategies; forecast human resource needs; assess current human resources; develop and implement human resource plans to match people and job openings. B. Review human resource objectives and strategies; assess current human resources; forecast human resource needs; review organization mission, objectives, and strategies; develop and implement human resource plans to match people and job openings. C. Review organization mission, objectives, and strategies; assess current human resources; forecast human resource needs; review human resource objectives and strategies; develop and implement human resource plans to match people and job openings. D. Review organization mission, objectives, and strategies; review human resource objectives and strategies; assess current human resources; forecast human resource needs; develop and implement human resource plans to match people and job openings. E. None of the above describes the correct order of steps in strategic human resource planning. D GT Fa
The Recruiting Process 208.
__________ is a set of activities designed to attract a qualified pool of job applicants to an organization. A. Socialization. B. Recruitment. C. Human resource planning. D. Affirmation action. E. Job promotion. B KT Fa
209.
The three steps in the typical recruitment process are: A. Searching, screening, and interviewing. B. Searching, initial screening, and socialization. C. Advertising job vacancies, making preliminary contacts, and initial screening. D. Advertising job vacancies, socialization, and screening. E. Planning, searching, and screening. C GT Fa
210.
Seeking job candidates from sources outside the hiring organization is known as __________. A. Traditional recruitment. B. Realistic recruitment. C. Affirmative action. D. External recruitment. E. Equal employment opportunity. D GT Fa
472
Schermerhorn & Wright: Management
211.
Making employees in the hiring organization aware of job vacancies through job posting and personal recommendations is known as __________. A. Traditional recruitment. B. Realistic recruitment. C. Affirmative action. D. Equal employment opportunity. E. Internal recruitment. E GT Fa
212.
The potential advantages of external recruitment include which of the following? A. It brings in outsiders with fresh perspectives. B. It provides access to specialized expertise not otherwise available from current employees. C. It provides access to work experience not otherwise available from current employees. D. B and C. E. A, B, and C. E GT Ap
213.
The potential advantages of internal recruitment include all of the following EXCEPT: A. Internal recruitment is usually less expensive than external recruitment. B. Internal recruitment deals with people whose performance records are well established. C. A history of serious internal recruitment can be encouraging to employees. D. Serious internal recruitment shows employees they can advance by working hard. E. Internal recruitment provides fresh perspectives and ideas for problem solving. E GT Ap
214.
Traditional recruitment and realistic job previews reflect different responses to the important recruitment issues of __________. A. Who to interview and when to interview. B. Reliability and validity. C. Choosing selection devices and measurement methods. D. Selecting job criteria and screening candidates. E. Honesty and full information. E GT Ap
215.
In __________, the organization seeks to “sell” itself to job applicants. A. Realistic recruitment. B. External recruitment. C. Socialization. D. Traditional recruitment. E. Affirmative action. D GT Fa
Chapter 12: Human Resource Management
473
216.
The recruitment approach that tries to provide the job candidates with all pertinent information about the job and the organization without distortion and before the job is accepted is called a(n) __________. A. Open job preview. B. Traditional job preview. C. Realistic job preview. D. Holistic job preview. E. Comprehensive job preview. C KT Fa
217.
One of the major goals of realistic job previews is to __________. A. Promote job satisfaction and reduce turnover. B. Reduce salaries and wages. C. Decrease training costs. D. Eliminate internal recruitment. E. Eliminate use of employment tests. A GT Ap
How to Make Selection Decisions 218.
The process of choosing from a pool of applicants the person or persons who offer the greatest performance potential is known as __________. A. Recruitment. B. Human management. C. Selection. D. Succession planning E. Orientation. C KT Fa
219.
__________ is the six-step process that involves completion of a formal application, interviewing, testing, reference checks, physical examination, and final analysis and decision to hire or reject. A. Recruiting. B. Orientation. C. Selection. D. Hiring. E. Socialization. C GT Fa
220.
Which of the following is NOT a legitimate reason for rejecting a job applicant in the selection process? A. The applicant has deficient qualifications. B. The applicant has insufficient ability, ambition, or poor interpersonal qualities. C. The applicant’s overall potential is low. D. The interviewer dislikes the applicant. E. The applicant is physically unfit for the job. D GT Fa
474
Schermerhorn & Wright: Management
221.
Which of the following statements accurately describe the job application form? A. It documents the candidate’s qualifications and personal history. B. It declares the individual to be a formal candidate for the job vacancy. C. It should accurately summarize an applicant’s special qualifications. D. All of the above. E. None of the above. D GT Fa
222.
From the interviewer’s perspective, interviews can fail for all of the following reasons EXCEPT: A. The interviewers ask the wrong things. B. The interviewers talk too much. C. Line managers do the interviewing. D. The interviewers’ personal biases prevent an applicant’s capabilities from being fully considered. E. The wrong people do the interviewing. C GT Fa
223.
Interviews can be difficult for job applicants, if the applicants __________. A. Are unprepared. B. Are poor communicators. C. Lack interpersonal skills. D. A and B. E. A, B, and C. E GT Fa
224.
To succeed in a telephone interview, an applicant should do all of the following EXCEPT: A. Be prepared ahead of time. B. Take the call in private. C. Dress casually. D. Have a list of questions ready. E. Ask what happens next. C MN Ap
225.
To succeed in a telephone interview, an applicant should do all of the following EXCEPT: A. Be prepared ahead of time. B. Practice an interview voice. C. Have reference materials handy. D. Have a list of answers ready. E. Ask what happens next. D MN Ap
226.
Any selection device should __________. A. Be valid but not necessarily reliable. B. Be reliable but not necessarily valid. C. Be both reliable and valid. D. Be used only by highly trained professionals. E. Give prospective employees reasons to question the hiring process. C GT Fa
Chapter 12: Human Resource Management
475
227.
A selection device is said to be reliable when it __________. A. Measures exactly what it intends to, relative to the job specification. B. Can be passed by at least 75 percent of all applicants. C. Is administered by a qualified human resource specialist. D. Yields the same results over time if taken by the same person. E. Is sanctioned by the EEOC. D KT Fa
228.
A selection device is said to be valid when it _________. A. Yields the same results over time if taken by the same person. B. Can be passed by at least 75 percent of all applicants. C. There is a demonstrated relationship between a person’s score or rating and his/her eventual job performance. D. Is sanctioned by the EEOC. E. Is administered by a qualified human resource specialist. C KT Fa
229.
__________ is an employment test that evaluates a person’s potential by observing his or her performance in experiential activities that simulate daily work activities. A. Modeling. B. Mentoring. C. Orientation. D. Socialization. E. An assessment center. E KT Fa
230.
__________ has applicants work on actual job tasks while being graded by observers on their performance. A. Work modeling. B. Work sampling. C. Assessment evaluation. D. Job analysis. E. Job observation. B KT Fa
231.
__________ can be used to find out important background information about job applicants that was not discovered in the application, interviewing, or testing steps. A. Reference checks. B. Assessment centers. C. Management simulation games. D. Apprenticeships. E. Realistic job previews. A GT Fa
476
Schermerhorn & Wright: Management
232.
A physical examination may be required as part of the selection process because __________. A. It can ensure that the person is physically capable of fulfilling job requirements. B. It can be used as a basis for enrolling the employee in the health-related fringe benefit programs. C. It can be used to do employee drug testing. D. All of the above. E. None of the above. D GT Ap
233.
The best selection decisions are most likely made when responsibility for analyzing all the data and making the final decision to hire or reject an applicant rests with __________. A. The applicant’s prospective co-workers. B. The head of the human resources department. C. The applicant’s prospective manager or team leader. D. The doctor giving the physical exam and drug test. E. The applicant’s prospective manager or team leader, potential coworkers, and the human resources staff. E GT Fa
DEVELOPING A QUALITY WORKFORCE (STUDY QUESTION 4) 234.
The intent of __________ in the human resource management process is to help newcomers fit into the work environment in a way that furthers their development and performance potential. A. Modeling. B. Mentoring. C. Training. D. Socialization. E. Orientation. D GT Fa
235.
The process of influencing the expectations, behaviour, and attitudes of new employees in a manner considered desirable by the organization is called __________. A. Socialization. B. Orientation. C. Modeling. D. Mentoring. E. Training. A KT Fa
Chapter 12: Human Resource Management
477
Employee Orientation 236.
__________ is a set of activities designed to familiarize new employees with their jobs, their coworkers, and key aspects of the organization. A. Socialization. B. Orientation. C. Modeling. D. Mentoring. E. Training. B KT Fa
237.
Which of the following activities typically occur through employee orientation? A. Clarifying the organization’s mission and culture. B. Explaining operating objectives and job expectations. C. Communicating policies and procedures. D. B and C. E. A, B, and C. E GT Fa
238.
Which one of the following statements does NOT accurately describe employee orientation? A. The first six months of employment in a given organization is crucial because it is during this time that original performance expectations are set. B. Patterns for future employee-employer relationships tend to be set in the first few months of employment. C. The primary intent of orientation is to enable new employees to complete job-related paperwork. D. When orientation is neglected, even well intentioned and capable people can learn inappropriate attitudes. E. Effective orientation enhances a person’s understanding of the organization and adds purpose to his or her daily job activities. C GT Ap
Training and Development 239.
A set of activities that help people acquire and improve job-related skills is called __________. A. Socialization. B. Orientation. C. Job analysis. D. Job specification. E. Training. E KT Fa
240.
On-the job training includes all of the following approaches EXCEPT: A. Coaching. B. Mentoring. C. Modeling. D. Management development E. Job rotation. D GT Fa
478
Schermerhorn & Wright: Management
241.
__________ is a training device that offers opportunities for persons to spend time in different jobs and expand their range of job capabilities. A. Coaching. B. An apprenticeship. C. Job rotation. D. Modeling. E. Mentoring. C GT Fa
242.
When an experienced person provides performance advice to another person, the on-the-job training method known as __________ is being used. A. Coaching. B. Management development. C. Job rotation. D. Employee development. E. Management development. A KT Fa
243.
The act of sharing experiences and insights between a senior person and a new or early-career employee is known as __________. A. Modeling. B. Mentoring. C. Management development. D. Executive orientation. E. Executive socialization. B KT Fa
244.
A training technique that demonstrates, through day-to-day personal behaviour, what is expected of others is called __________. A. Modeling. B. Performance management. C. Apprenticeship. D. Simulating. E. Role playing. A KT Fa
245.
Training specifically targeted to improve a person’s knowledge and skills in the fundamentals of management and leadership is referred to as __________. A. Management development. B. Executive modeling. C. Executive apprenticeship. D. Executive coaching. E. Management orientation/socialization. A KT Fa
Chapter 12: Human Resource Management
479
246.
__________ will likely benefit from management development programs that emphasize team leadership and communication. A. Nonsupervisory workers B. Beginning managers. C. Middle managers D. Top managers. E. None of the above. B GT Ap
247.
__________ will likely benefit from management development programs that focus on developing a better understanding of multifunctional viewpoints. A. Nonsupervisory workers B. Beginning managers. C. Middle managers D. Top managers. E. None of the above. C GT Ap
248.
__________ will likely benefit from management development programs that sharpen decisionmaking and negotiating skills and expand awareness of corporate strategy and direction. A. Nonsupervisory workers B. Beginning managers. C. Middle managers D. Top managers. E. None of the above. D GT Ap
Performance Management Systems 249.
A __________ sets standards, assesses results, and plans actions to improve future performance. A. Performance appraisal system. B. Performance management system C. Performance development system. D. Employee rating system. E. Goal-setting system. B KT Fa
250.
__________ is the process of formally assessing someone’s work accomplishments and providing feedback. A. Discipline management. B. Management by objectives. C. An informal review. D. Performance appraisal. E. A compensation review. D KT Fa
480
Schermerhorn & Wright: Management
251.
Performance appraisal serves the purposes of __________. A. Evaluation and development. B. Coordination and discipline. C. Reform and restructuring. D. Controlling and planning. E. Leadership and counseling. A GT Fa
252.
The __________ purpose of performance appraisal is intended to let people know where they stand relative to performance objectives and standards. A. Orientation. B. Evaluation. C. Development. D. Socialization. E. Labour relations. B GT Fa
253.
The __________ purpose of performance appraisal is intended to assist people in their training and continued personal development. A. Orientation. B. Evaluation. C. Development. D. Socialization. E. Labour relations. C GT Fa
254.
A manager acts in a __________ when he or she gives a direct evaluation of another person’s accomplishments. A. Reliable role. B. Testing role. C. Judgmental role. D. Counseling role. E. Negotiating role. C GT Fa
255.
A manager acts in a __________ when he or she focuses on a subordinate’s developmental needs. A. Reliable role. B. Testing role. C. Judgmental role. D. Counseling role. E. Negotiating role. D GT Fa
Chapter 12: Human Resource Management
481
256.
Which of the following statements does NOT accurately describe performance appraisal? A. Common performance appraisal methods include graphic rating scales, behaviourally anchored rating scales, the critical-incident technique, and multiperson comparisons. B. A record of consistent past actions can help back up contested performance evaluations. C. Performance appraisal is intended for use in evaluation only. D. Performance appraisal methods should be reliable and valid. E. Managers should keep written documentation of performance appraisals in order to back up any contested evaluations. C GT Fa
257.
A manager is using the __________ method of performance appraisal when the employee’s performance is evaluated using a checklist of traits or characteristics that are related to performance in a given job. A. Multiperson comparisons. B. Behaviourally anchored rating scale. C. Traits rating scale. D. Graphic rating scale. E. 360º feedback. D KT Fa
258.
A performance appraisal method that provides rating scales for actual behaviours that exemplify various performance levels is known as __________. A. 360º feedback. B. The critical-incident technique. C. Multiperson comparisons. D. Graphic rating scales. E. Behaviourally anchored rating scales. E KT Fa
259.
The __________ of performance appraisal involves keeping a running log or inventory of effective and ineffective job behaviours. A. 360º feedback. B. The critical-incident technique. C. Multiperson comparisons. D. Graphic rating scales. E. Behaviourally anchored rating scales. B KT Fa
260.
The __________ is a performance appraisal method that uses a rank ordering, paired comparisons, or a forced distribution to formally compare one person’s performance with that of one or more others. A. Critical-incident technique. B. Multiperson comparison method. C. Graphic rating scales method. D. Behaviourally anchored rating scales method. E. 360º feedback method. B KT Fa
482
Schermerhorn & Wright: Management
261.
In the __________ method of multiperson comparison, all employees being rated are arranged in order of performance achievement. A. Graphic. B. Rank ordering. C. Paired comparisons. D. Forced distribution. E. Critical-incident. B GT Fa
262.
In the __________ method of multiperson comparison, each person is formally compared with every other person and is rated as either the superior or weaker member of the pair. A. Graphic. B. Rank ordering. C. Paired comparisons. D. Forced distribution. E. Critical-incident. C GT Fa
263.
In the __________ method of multiperson comparison, each person is placed into a frequency distribution that requires a certain percentage of employees to fall into specific performance classifications. A. Graphic. B. Rank ordering. C. Paired comparisons. D. Forced distribution. E. Critical-incident. D GT Fa
264.
An appraisal method that involves superiors, subordinates, peers, and even internal and external customers in the evaluation process is known as the __________. A. Critical-incident technique. B. Multiperson comparisons method. C. Graphic rating scales method. D. Behaviourally anchored rating scales method. E. 360º feedback method. E KT Fa
MAINTAINING A QUALITY WORKFORCE (STUDY QUESTION 5) 265.
A recent survey conducted by the Society for Human Resource Management found that the most effective tools for maintaining a quality workforce included all of the following EXCEPT: A. Good health care benefits. B. Competitive salaries. C. Caring supervision. D. Flexible work schedules and personal time off. E. Opportunities for training and development. C GT Fa
Chapter 12: Human Resource Management
483
Career Development 266.
__________ is a sequence of jobs and work pursuits that constitute what a person does for a living. A. A job assignment. B. An employment opportunity. C. A career. D. Job socialization. E. Job performance. C KT Fa
267.
Which of the following statements accurately describe something about careers or career paths? A. A career is a sequence of jobs and work pursuits that constitute what a person does for a living. B. A career path is a sequence of jobs held over time during a career. C. Career paths may be pursued internally with the same employer or externally with various employers. D. All of the above. E. None of the above. D GT Fa
268.
__________ is the process of systematically matching career goals and individual capabilities with opportunities for their fulfillment. A. Needs analysis. B. Goal development. C. Management by objectives. D. Career planning. E. Career management. D KT Fa
269.
Which of the following statements does NOT accurately describe career planning and development? A. In planning their careers, people should ask questions such as: “Who am I?” “Where do I want to go?” “How do I get there?” B. Some people believe that a career should progress in a somewhat random but opportunistic way. C. Some people believe a career should be rationally planned and logically pursued. D. A well-managed career should have a carefully thought-out plan that establishes general direction with an eye for opportunity along the way. E. Employers are responsible for managing people’s careers. E GT Ap
484
Schermerhorn & Wright: Management
270.
A __________ is a position from which someone is unlikely to move to a higher level of work responsibility. A. Dead-end job. B. Career plateau. C. Final job assignment. D. Staff job. E. Career path. B KT Fa
271.
The common reasons for career plateaus include __________. A. Personal choice. B. Limited abilities. C. Lack of opportunity. D. B and C. E. A, B, and C. E GT Ap
Work-Life Balance 272.
The issue of __________ deals with how people balance the demands of work with their personal and family needs. A. Organizational socialization. B. Work-life balance. C. Performance management. D. Career planning. E. Career plateauing. B KT Fa
273.
The issue of work-life balance __________. A. Is an important retention issue in contemporary businesses. B. Includes the unique needs of single parents. C. Includes the needs of dual-career couples. D. All of the above. E. None of the above. D GT Ap
274.
Which of the following cases represent legitimate concerns about work-life balance? A. Single parents who must balance complete parenting responsibilities with a job. B. Dual-career couples who must balance the career needs and opportunities of each partner. C. The family-friendliness of employers. D. All of the above are legitimate work-life balance issues. E. None of the above is a legitimate work-life balance issue. D GT Ap
Chapter 12: Human Resource Management
485
Compensation and Benefits 275.
__________ is a salary or hourly wage paid to an individual. A. Base compensation. B. Incentive compensation. C. Fringe benefits. D. Flexible benefits. E. Family-friendly benefits. A KT Fa
276.
Base compensation can assist the organization by accomplishing all of the following EXCEPT: A. Making the organization a more desirable place of employment. B. Attracting the right people for the right jobs. C. Making outside employment opportunities less attractive. D. Retaining qualified employees. E. Eliminating the need for fringe benefits programs. E GT Ap
277.
Additional nonwage or nonsalary forms of compensation that are provided to an organization’s workforce are called __________. A. Base compensation plus. B. A bonus. C. Fringe benefits. D. Incentives. E. Added base pay. C KT Fa
278.
Which of the following does NOT accurately describe employers’ experiences with fringe benefits? A. Fringe benefits help in attracting and retaining capable workers. B. Fringe benefits costs are typically less than 15 percent of a typical worker’s earnings. C. The constantly rising cost of fringe benefits is a major employer concern. D. Fringe benefits packages usually include options on disability protection, health and life insurance, and retirement plans. E. Increasingly, employers are encouraging healthy lifestyles for their employees as one way to help contain the cost of healthcare benefits. B GT Ap
279.
A(n) __________ program allows employees to choose a set of benefits within a certain dollar amount. A. Employee benefits. B. Incentive. C. Bonus. D. Flexible benefits. E. Employer-assisted benefits. D KT Fa
486
Schermerhorn & Wright: Management
280.
__________ help(s) employees to achieve a better balance between their work and nonwork responsibilities. A. Adaptive employee benefits. B. Flexible base compensation. C. Balanced scorecard systems. D. Family-friendly benefits. E. Employer-required benefits. D KT Fa
281.
__________ help employees deal with troublesome personal problems. A. Employee orientation programs. B. Organizational socialization programs. C. Employee assistance programs. D. Performance management programs. E. Labour relations programs. C KT Fa
Retention and Turnover 282.
Which statement concerning retention and turnover in NOT accurate? A. Replacement both concludes and recycles the human resource management process. B. Replacement can remove a person from an assigned job. C. Replacement can shift people between positions within an organization. D. Replacement always entails costs, but rarely offers benefits. E. Replacement is an opportunity to review human resource plans. D GT Ap
283.
Which statement concerning retention and turnover is FALSE? A. Promotions and transfers represent replacement decisions that retain employees but move them from their current jobs. B. Promotion is a movement to a higher-level position. C. Transfer is a movement to a different job at a similar level of responsibility. D. For most people retirement is free of various fears and apprehensions E. Many organizations provide special assistance to pre-retirement employees. D GT Fa
284.
The most extreme way of correcting a mismatch between the employee and the organization is __________. A. Voluntary early retirement. B. Transfer. C. Outplacement. D. Termination. E. Work sharing. D GT Fa
Chapter 12: Human Resource Management
487
Labour-Management Relations 285.
Organizations to which workers belong and which collectively deal with employers on the employees’ behalf are called __________. A. Employee credit unions. B. Government agencies. C. Labour unions. D. Workers agencies. E. Negotiation agencies. C KT Fa
286.
__________ specify the rights and obligations of employees and management with respect to wages, work hours, work rules, seniority, hiring, grievances, and other conditions of employment. A. Social norms. B. Psychological contracts. C. Labour laws. D. Labour contracts. E. Supervisory expectations. D KT Fa
287.
__________ is the process of negotiating, administering, and interpreting labour contracts. A. A labour-management relationship. B. A worker-management review board. C. A labour discussion. D. Collective bargaining. E. Union negotiation. D KT Fa
288.
Which of the following does NOT accurately describe the legal context of labour-management relationships in Canada? A. National and international labour unions are closely governed by the Canadian Labour Congress. B. The legal framework for labour contracts and collective bargaining is intended to give management an advantage over labour. C. The Canadian Labour Congress promotes unionism and protection of member rights. D. The collective bargaining process is a major influence on human resource management. E. In a unionized setting, theh labour contract and its legal implications must be considered when making human resource decisions. B GT Fa
289.
What can union members do to make things difficult for management? A. Refuse to come to work. B. Refuse to buy employer’s products or services, and ask other people to do the same. C. Post and carry signs complaining about the employer’s treatment of workers. D. All of the above. E. None of the above. D GT Ap
488 290.
Schermerhorn & Wright: Management What can managers do to make things difficult for unions? A. Refuse to let employees come to work. B. Hire nonunion workers to do strikers’ jobs. C. Get a court order requiring that strikers come back to work. D. B and C. E. A, B, and C. E GT Ap
Essay Questions 291.
What is human resource management and what roles do the key components of HRM play in organizations? Suggested Answer: Human resource management (HRM) involves attracting, developing, and maintaining a talented and energetic workforce to support the organization’s mission, objectives, and strategies. Attracting, developing, and maintain quality workers are the three key components of the HRM process. Attracting a quality workforce involves human resource planning, recruitment, and selection. Developing a quality workforce involves employee orientation, training and development, and performance appraisal. Maintaining a quality workforce involves career planning and development, work-life balance, compensation and benefits, employee retention and turnovers, and labour-management relations.
292.
Briefly describe the legal context of human resource management with respect to discrimination in employment. Suggested Answer: Canada is governed by two main pieces of legislation: The Canadian Human Rights Code and The Employment Equity Act. • The Canadian Human Rights Code—makes it illegal for employers to discriminate in hiring, promotions, and termination employment based on prohibited grounds. • The Employment Equity Act—gives preference to four designated groups: o Aboriginals o Women o Visible minorities o People with physical/mental disabilities
293.
Assume that you own and operate your own business, and that you employ approximately 50 people. You want to hire the best-qualified people that you can find. Explain how you would go about recruiting and selecting new employees.
Suggested Answer:
Chapter 12: Human Resource Management
489
The recruiting and selection processes should be followed in a step-by-step fashion to have the greatest chance of attracting the best-qualified people. Recruitment is a set of activities designed to attract a qualified pool of job applicants to an organization. The steps in the recruiting process are as follows: advertisement of a job vacancy, preliminary contact with potential job candidates, and initial screening to create a pool of qualified applicants. Both external and internal recruitment could be used. Most importantly, realistic job previews should be used. This will provide the job candidate with all pertinent information about the job and the organization, without distortion and before the job is accepted. Further, it will foster a healthy perspective on the employment relationship, thereby facilitating job satisfaction while reducing the premature turnover that often occurs when expectations are unmet. Selection is the process of choosing from a pool of applicants the person or persons who offer the greatest performance potential. The steps in the selection process are: • • • • • •
Step 1 –– completion of a formal application form. Step 2 –– interviewing. Step 3 –– testing. Step 4 –– reference checks. Step 5 –– physical examination. Step 6 –– final analysis and decision to hire or reject.
The best candidates are likely to be selected if appropriate rejections are made at each step of the selection process. In step 1, candidates who lack the appropriate credentials should be rejected. In step 2, candidates with insufficient ability, ambition, or poor interpersonal qualities should be rejected. At step 3, candidates with poor test scores are rejected. At step 4, candidates with poor references should be rejected. In step 5, candidates who are physically unfit for the job should be rejected. Finally, at step 6, candidates having low overall potential should be rejected. 294.
What steps should a manager take in helping a new employee fit into the work environment in a way that furthers his/her development and performance potential? Suggested Answer: A manager should be concerned about socialization and orientation in helping a new employee fit into the work environment so that his/her development and performance potential are enhanced. Socialization is the process of influencing the expectations, behaviour, and attitudes of a new employee in a way considered desirable by the organization. The objective of socialization in the context of human resource management is to help achieve the best possible fit among the individual, the job, and the organization. Socialization of newcomers begins with orientation, which is a set of activities designed to familiarize new employees with their jobs, coworkers, and key aspects of the organization as a whole. Good orientation enhances a person’s understanding of the organization and adds purpose to his or her daily job activities. The first six months of employment are often crucial in determining how well someone is going to perform over the long run.
295.
What options would you, as a manager, have in maintaining a qualified workforce? Comment briefly on the options discussed in the text.
490
Schermerhorn & Wright: Management Suggested Answer: The options for maintaining a qualified workforce include career planning and development, work-life balance, compensation and benefits, retention and turnover, and labourmanagement relations. Each of these is described briefly below: •
Career planning is the process of systematically matching career goals and individual capabilities with opportunities for their fulfillment. Career planning involves answering questions such as: “Who am I?” “Where do I want to go?” “How do I get there?” Career development takes place through the actions that address the answers to these questions.
•
Work-life balance deals with how people balance the demands of work with personal and family needs. Among progressive employers, human resource policies and practices that support a healthy work-life balance are increasingly valued.
•
A competitive wage and salary structure and a good benefits program can help to attract and retain highly competent employees.
•
Retention and turnover deal with various replacement decisions ⎯ that is, the management of promotions, transfers, retirements, and terminations. Each of these replacement decisions has different implications for the employing organization. Promotion and transfer shift people between positions within the organization. Retirements represent voluntary decisions to end one’s career. Termination is the involuntary and permanent dismissal of an employee.
•
The adversarial approach to labour-management relations represents a “win-lose” conflict situation, in which both labour and management expend a lot of energy in prolonged conflict. A new and more progressive era of labour-management relations is emerging, as many unions and employers try to work together for their common good.
Chapter 13:
LEADING True/False Questions CHAPTER INTRODUCTION 1.
Effective leaders in the contemporary world understand the diversity of people’s gifts, talents, and skills. T GT Ap
2.
Effective leaders in the contemporary world recognize the unique qualities of other people, and they are less inclined to believe that they ⎯ as leaders ⎯ know what is best. T GT Ap
3.
Effective leaders in the contemporary world are able to bring out the best in other people. T GT Ap
THE NATURE OF LEADERSHIP (STUDY QUESTION 1) 4.
Leadership is the process of inspiring others to work hard to accomplish important tasks. T KT Fa
5.
Leading builds commitment and enthusiasm for people to apply their talents to help accomplish plans. T GT Fa
6.
Planning sets the direction and objectives; organizing brings the resources together to turn plans into action; leading builds the commitments and enthusiasm needed for people to apply their talents fully to help accomplish plans; and controlling makes sure things turn out right. T GT Fa
7.
Maintenance of the status quo in a complex and dynamic business environment is a major leadership challenge in the modern workplace. F GT Fa
8.
Shorter time frames for accomplishing things and expectations for success on the first attempt are major leadership challenges in the modern workplace. T GT Fa
491
492
Schermerhorn & Wright: Management
9.
The existence of complex, ambiguous, and multidimensional problems is a major leadership challenge in the contemporary workplace. T GT Fa
10.
A major leadership challenge in contemporary business is the necessity for taking a long-term view even while meeting short-term performance demands. T GT Fa
Leadership and Vision 11.
Vision refers to a future that one hopes to create or achieve in order to improve upon the present state of affairs T KT Fa
12.
Visionary leadership describes a leader who brings to the situation a clear and compelling sense of the future as well as an understanding of the actions needed to get there successfully. T KT Fa
13.
The challenges of visionary leadership involve making long-term plans and drafting budgets, creating organizational structures and assigning people to jobs, and comparing results with original plans. F GT Fa
14.
Being a team player, a pioneer, and a consistent role model of behaviour are core principle that should be practiced by managers who want to meet the challenges of visionary leadership. T MN Fa
15.
The principles for meeting the challenges of visionary leadership include: being a pioneer who encourages innovation and supports people with ideas; inspiring others through personal example to share in a common vision; being a team player and supporting the efforts and talents of others; and providing a consistent model of how others can and should act. T MN Fa
Power and Influence 16.
The ability to get someone else to do something you want done or to make things happen the way you want is called manipulation. F KT Fa
17.
Power is the ability to get someone else to do something you want done or to make things happen the way you want. T KT Fa
18.
For executive success to occur, the use of power should reflect the desire to influence and control others for the good of the group or organization as a whole. T GT Fa
Chapter 13: Leading
493
19.
For executive success to occur, the use of power should reflect the desire to control for personal satisfaction. F GT Fa
20.
The positive face of power is the foundation of effective leadership. T GT Fa
21.
The positive face of power is the ability to make things happen for the good of the group or the organization as a whole. T GT Fa
22.
Reward power, coercive power, and legitimate power are different types of personal power. F GT Fa
23.
The three types of position power are reward, coercive, and legitimate T GT Fa
24.
Reward power is the ability to influence the behaviour of other people because of one’s capacity to offer positive outcomes. T KT Fa
25.
Legitimate power is being used when a manager offers pay raises, bonuses, special assignments, or compliments as incentives to subordinates. F GT Ap
26.
Reward power is the ability to influence the behaviour of other people because of one’s capacity to punish or withhold positive outcomes. F KT Fa
27.
A manager who withholds positive outcomes, such as special assignments or bonuses as a means for controlling the behaviour of employees is using coercive power. T GT Ap
28.
Expert power is the ability to influence the behaviour of other people because of one’s organizational position or status. F KT Fa
29.
Legitimate power is being used when a manager tells someone to do something because he or she is the boss and the other person must do as asked. T GT Ap
30.
Expert power and referent power are different types of position power. F GT Fa
31.
The two types of personal power are expert and referent. T GT Fa
494
Schermerhorn & Wright: Management
32.
Legitimate power is the ability to influence the behaviour of other people because of one’s special expertise. F KT Fa
33.
Ralph uses expert power when he offers help in technical areas in which he is skilled and knowledgeable. T GT Ap
34.
Referent power is the ability to influence the behaviour of other people through identification. T KT Fa
35.
When a manager’s charisma or interpersonal attractiveness is used to influence the behaviour of subordinates, the manager is using referent power. T GT Ap
36.
Successful leadership depends of acquiring and appropriately utilizing all sources of power. T GT Fa
37.
The use of reward power or legitimate power usually produces temporary compliance. T GT Fa
38.
The use of coercive power produces, at best, temporary compliance, often accompanied by resistance. T GT Fa
39.
The use of expert power or referent power tends to generate commitment. T GT Fa
40.
In building and using position power, managers should remember there is no substitute for expertise, likable personal qualities are very important, effort and hard work breed respect, and personal behaviour must support expressed values. F GT Fa
41.
Good managers build or enhance their personal power by establishing networks of interpersonal contacts and getting involved in the important information flows within them, taking good care of others who are dependent on them, and becoming known as influential people in the organization. F GT Fa
42.
Effective managers build or enhance their position power by capitalizing on centrality, criticality, and visibility. T GT Fa
Ethics and the Limits to Power 43.
Chester Barnard’s acceptance theory of authority identifies four conditions that determine whether a leader’s directives will be followed and true influence achieved. T GT Fa
Chapter 13: Leading
495
44.
In the acceptance theory of authority, a leader’s directives will be followed and true influence will be achieved when the target person truly understands the directive, feels capable of carrying out the directive, and is highly motivated to carry out the directive. F GT Fa
45.
In the acceptance theory of authority, a leader’s directives will be followed and true influence will be achieved when the target person truly understands the directive, feels capable of carrying out the directive, believes that the directive is in the organization’s best interests, and believes that the directive is consistent with personal values. T GT Fa
46.
In using the acceptance theory of authority as a starting point for resolving ethical dilemmas, a follower should always ask: Where do I (or will I) draw the line? At what point do I (or will I) refuse to comply with requests? When will I say no? T GT Fa
Leadership and Empowerment 47.
The process that managers use to enable and help others to gain power and achieve influence within the organization is known as empowerment. T KT Fa
48.
Effective leaders empower others by providing them with the information, responsibility, authority, and trust to make decisions and act independently within their areas of expertise. T GT Fa
49.
When people feel powerful, they are more willing to make decisions and to take the actions needed to get their jobs done. T GT Fa
50.
When people feel powerful, they are more willing to challenge and even resist the organization’s leaders. F GT Fa
51.
Leadership through empowerment can be exercised by getting others involved in selecting work assignments and methods for accomplishing them as well as by finding out what others think and letting them help design the solutions. T MN Fa
52.
Encouraging others to take initiative and make decisions; creating an environment of cooperation, information sharing, and shared ownership of goals; and letting others put their ideas and solutions into practice are useful methods empowering others. T MN Fa
496
Schermerhorn & Wright: Management
LEADERSHIP TRAITS AND BEHAVIOURS (STUDY QUESTION 2) Search for Leadership Traits 53.
Trait theories of leadership address the question of: “What personal characteristics separate effective leaders from ineffective leaders?” T GT Fa
54.
The behavioural approach to the study of leadership focuses on a leader’s personal characteristics as the primary determinants of leadership success. F GT Fa
55.
Certain personal traits do seem to identify successful leadership, although they must always be considered along with situational factors. T GT Fa
56.
Research indicates that physical traits such as height, weight, and physique have no relationship to leadership success. T GT Fa
57.
Some personal traits, such as drive, self-confidence, creativity, cognitive ability, business knowledge, motivation, flexibility, and honesty and integrity are considered to be important for leadership success. T GT Fa
Focus on Leadership Behaviours 58.
Leadership styles are concerned with the recurring patterns of behaviours exhibited by a leader. T KT Fa
59.
According to leader behaviour research, a manager who plans the work to be done, assigns task responsibilities, sets clear work standards, and monitors performance results is high in concern for task. T GT Fa
60.
In the leadership literature, “concern for task” is also known as consideration and relationship orientation. F GT Fa
61.
According to leader behaviour research, a manager who acts warm and supportive toward followers, maintains good social relations with them, respects their feelings, is sensitive to their needs, and shows trust in them is high in concern for people. T GT Fa
62.
In the leadership literature, “concern for people” is also known as initiating structure. F GT Fa
Chapter 13: Leading
497
63.
The Blake and Mouton Leadership Grid identifies alternative leadership styles that reflect different combinations of concern for task and concern for people. T GT Fa
64.
In the Blake and Mouton Leadership Grid, team management is the preferred leadership style that reflects a high concern for both people and the task. T GT Fa
65.
In the Blake and Mouton Leadership Grid, middle-of-road management reflects a high concern for the task and a low concern for people. F GT Fa
66.
In the Blake and Mouton Leadership Grid, country club management reflects a high concern for people and a low concern for the task. T GT Fa
67.
In the Blake and Mouton Leadership Grid, authority-obedience management reflects a low concern for both the task and people. F GT Fa
68.
In the Blake and Mouton Leadership Grid, impoverished management reflects a moderate emphasis on both task and people concerns. F GT Fa
Classic Leadership Styles 69.
An autocratic style of leadership emphasizes task over people, keeps authority and information within the leader’s tight control, and acts in a unilateral command-and-control fashion. T KT Fa
70.
A democratic style of leadership shows little concern for task, lets the group make decisions, and acts with a “do the best you can and don’t bother me” attitude. F KT Fa
71.
A laissez-faire style of leadership is committed to both task and people, getting things done while sharing information, encouraging participation in decision making, and helping people develop their skills and competencies. F KT Fa
CONTINGENCY APPROACHES TO LEADERSHIP (STUDY QUESTION 3) 72.
Contingency approaches to leadership attempt to answer the question: “When and under what circumstances is a particular leadership style preferable to others?” T GT Fa
73.
Modern leadership theories reflect a contingency perspective that attempts to match situational demands with appropriate leader behaviours. T GT Fa
498
Schermerhorn & Wright: Management
Fiedler’s Contingency Model 74.
The basic premise of Fiedler’s contingency theory is that leadership success depends on the match between leadership style and situational demands. T GT Fa
75.
In Fiedler’s contingency model, the least-preferred coworker scale is used to measure a person’s leadership style. T GT Fa
76.
In Fiedler’s contingency model, a person’s leadership style is described as either supportive or achievement-oriented. F GT Fa
77.
Fred Fiedler, the developer of the contingency theory of leadership, asserts that competent leaders can adapt their behavioural styles to fit the demands of differing situations they encounter. F GT Fa
78.
Fred Fiedler, the developer of the contingency theory of leadership, asserts that leadership style is relatively enduring and difficult to change and therefore leadership style must be fit to the situation T GT Fa
79.
Fiedler’s contingency theory of leadership maintains that the amount of situational control is crucial in determining the correct style-situation fit. T GT Fa
80.
The quality of leader-member relations refers to the degree to which the group supports the leader. T GT Fa
81.
The extent to which task goals, procedures, and guidelines are clearly spelled out is called amount of position power. F GT Fa
82.
The extent to which the position gives the leader power to reward and punish subordinates is called degree of task structure. F GT Fa
83.
One guiding proposition of Fiedler’s contingency theory of leadership is that a relationshiporiented style works best in low-control situations and a task-oriented style works best in highcontrol situations. F GT Fa
84.
One guiding proposition of Fiedler’s contingency theory of leadership is that a relationshiporiented style works best in moderate-control situations. T GT Fa
Chapter 13: Leading
499
Hersey-Blanchard Situational Leadership Model 85.
The basic premise of the Hersey-Blanchard situational leadership model is that managers should adjust their leadership styles depending on the readiness of the followers to perform in a given situation. T GT Fa
86.
According to Hersey and Blanchard’s situational leadership model, employee readiness is determined by the followers’ ability, willingness, and confidence in performing required tasks. T GT Fa
87.
In the Hersey and Blanchard situational leadership model, delegating is a low-task, lowrelationship style and participating is a low-task, high-relationship style. T GT Fa
88.
In the Hersey and Blanchard situational leadership model, telling is a high-task, high-relationship style, and selling is a high-task, low-relationship style. F GT Fa
89.
In Hersey and Blanchard’s situational leadership model, a manager who allows the group to make and take responsibility for task decisions is using delegating style. T GT Fa
90.
In Hersey and Blanchard’s situational leadership model, a manager who emphasizes the sharing of ideas and decision making is using the participating style. T GT Fa
91.
In Hersey and Blanchard’s situational leadership model, a manager who explains task directions persuasively and with much support is using the telling style. F GT Fa
92.
In Hersey and Blanchard’s situational leadership model, a manager who gives specific task directions and closely supervises work progress is using the selling style. F GT Fa
House’s Path-Goal Leadership Theory 93.
The basic premise of House’s path-goal contingency leadership theory is that effective leaders clarify the path through which followers can achieve both task-related and personal goals. T GT Fa
94.
According to House’s path-goal leadership model, directive leadership involves letting subordinates know what is expected, giving direction on what to do and how, scheduling work to be done, maintaining definite standards of performance, and clarifying the leader’s role in the group. T GT Fa
500
Schermerhorn & Wright: Management
95.
According to House’s path-goal leadership theory, managers use supportive leadership when they involve subordinates in decision making, consult with them, ask questions of subordinates, and use subordinates’ suggestions when making a decision. F GT Fa
96.
According to House’s path-goal model, achievement-oriented leadership involves doing things to make work more pleasant, treating group members as equals, being friendly and approachable, and showing concern for the well-being of subordinates. F GT Fa
97.
According to the path-goal leadership theory, a manager is showing a participative leadership style when he/she sets challenging goals, expects the highest level of performance, emphasizes continuous improvement in performance, and displays confidence in meeting high standards. F GT Fa
98.
According to House’s path-goal leadership model, directive leadership is needed to clarify task objectives and expected rewards when job assignments are ambiguous. T KT Fa
99.
According to House’s path-goal leadership model, supportive leadership is needed to increase confidence by emphasizing individual abilities and offering needed task assistance when worker self-confidence is low. T KT Fa
100.
According to House’s path-goal leadership model, participative leadership is needed to clarify individual needs and identify appropriate rewards when performance incentives are poor. T KT Fa
101.
According to House’s path-goal leadership model, achievement-oriented leadership is needed to set goals and raise performance aspirations when task challenge is insufficient. T GT Ap
102.
Aspects of the work setting and the people involved that can reduce the need for a leader’s personal involvement are referred to as substitutes for leadership T KT Fa
103.
The ability, experience, and independence of subordinates; the clarity of organizational plans and formalization of rules; and routineness and availability of performance feedback can serve as effective substitutes for leadership T GT Fa
Vroom-Jago Leader-Participation Model 104.
The Vroom-Jago leader-participation model is designed to help leaders choose an appropriate decision-making method for any problem situation. T GT Fa
105.
According to the Vroom-Jago leader-participation model, a power-oriented decision occurs when the leader makes the decision alone and then communicates it to the work group. F KT Fa
Chapter 13: Leading
501
106.
According to the Vroom-Jago leader-participation model, a consultative decision occurs when the leader makes the decision after receiving information, advice, or opinions from group members. T KT Fa
107.
According to the Vroom-Jago leader-participation model, a group decision occurs when all team members participate in making a decision. T KT Fa
108.
The decide alone option of the Vroom-Jago leader-participation model is being used when the manager decides how to solve the problem and communicates the decision to the group. T GT Fa
109.
The consult individually option of the Vroom-Jago leader-participation model is being used when the manager makes the decision after sharing the problem and consulting individually with group members to get their suggestions. T GT Fa
110.
The facilitate option of the Vroom-Jago leader-participation model is being used when the manager makes the decision after convening the group, sharing the problem, and consulting with everyone to get their suggestions. F GT Fa
111.
The consult with group option of the Vroom-Jago leader-participation model is being used when the manager convenes the group, shares the problem, and then facilitates group discussion to make a decision. F GT Fa
112.
The delegate option of the Vroom-Jago leader-participation model is being used when the manager convenes the group and delegates to group members the authority to define the problem and make a decision. T GT Fa
113.
In the Vroom-Jago leader-participation model, problem situations are characterized in terms of decision quality, decision acceptance, and decision time. T KT Fa
114.
The Vroom-Jago leader-participation theory indicates that a leader should use the more authorityoriented decision methods when the leader personally has the expertise needed to solve the problem, the leader is confident and capable of acting alone, others are likely to accept the decision the leader makes, and little or no time is available for discussion. T GT Fa
115.
The Vroom-Jago leader-participation theory indicates that a leader should use the more grouporiented and participative decision methods when the leader lacks sufficient expertise and information to solve a problem by himself/herself, the problem is unclear and help is needed to clarify the situation, acceptance of the decision and commitment by others is necessary for its implementation, and adequate time is available to permit true participation. T GT Fa
502
Schermerhorn & Wright: Management
116.
Within the context of the Vroom-Jago leader-participation model, the potential benefits of participative decision methods include helping to improve decision quality and decision acceptance, and helping to develop leadership potential in others. T GT Fa
117.
The potential disadvantage(s) of participative decision methods within the context of the VroomJago leader-participation model include lost efficiency and the lack of usefulness when problems must be resolved immediately. T GT Fa
TRANSFORMATIONAL LEADERSHIP (STUDY QUESTION 4) 118.
A good “old-fashioned” leader develops special leader-follower relationships and inspires followers in extraordinary ways. F KT Fa
119.
A charismatic leader develops special leader-follower relationships and inspires followers in extraordinary ways. T KT Fa
Transformational and Transactional Leadership 120.
Transformational leadership focuses on directing the efforts of others through the use of tasks, rewards, and structures. F KT Fa
121.
Transactional leadership is inspirational leadership that gets people to put forth extraordinary effort and achieve extraordinary performance. F KT Fa
122.
Transformational leadership is probably being used when followers are enthusiastic about the leader and his or her ideas, and when the followers work hard to support the leader. T GT Ap
123.
Transformational leadership is likely being used when followers remain loyal and devoted to the leader and strive for superior performance accomplishments. T GT Ap
124.
By itself, transactional leadership is insufficient to meet contemporary leadership challenges. T GT Fa
125.
Transformational leadership is a building block that helps support transactional leadership. F GT Fa
Chapter 13: Leading
503
Qualities of a Transformational Leader 126.
Having ideas and a clear sense of direction; communicating them to others; and developing excitement about accomplishing shared “dreams” describe the transformational leadership attribute of Intellectual stimulation. F GT Fa
127.
Using the power of personal reference and emotion to arouse others’ enthusiasm, faith, loyalty, pride, and trust in themselves describe the transformational leadership attribute of charisma. T GT Fa
128.
Identifying heroes and holding spontaneous and planned ceremonies to celebrate excellence and high achievement” describe the transformational leadership attribute of charisma. F GT Fa
129.
Helping others develop, removing performance obstacles, sharing responsibilities, and delegating truly challenging work describe the transformational leadership attribute of empowerment. T GT Fa
130.
Gaining the involvement of others by creating awareness of problems and stirring their imaginations describe the transformational leadership attribute of vision. F GT Fa
131.
Being honest and credible, acting consistently out of personal conviction, and following through on commitments describe the transformational leadership attribute of integrity. T GT Fa
CURRENT ISSUES IN LEADERSHIP DEVELOPMENT (STUDY QUESTION 5) Emotional Intelligence 132.
Emotional intelligence is ability to manage our emotions in social relationships. T KT Fa
133.
A leader’s emotional intelligence significantly influences his or her effectiveness, especially in senior management positions. T GT Fa
134.
The components of emotional intelligence include self-awareness, self-regulation, motivation, empathy, and social skill. T GT Fa
Gender and Leadership 135.
Women tend to rely on the transactional leadership approach and men tend to rely on the interactive leadership approach. F GT Fa
136.
Women tend to exhibit democratic and participative behaviours in their leadership approaches. T GT Fa
504
Schermerhorn & Wright: Management
137.
Men tend to exhibit assertive and directive behaviours in their leadership approaches. T GT Fa
138.
Given the current emphasis on shared power, communication, cooperation, and participation in new-form organizations, interactive leadership appears to be an excellent fit with the demands of a diverse workforce and the new workplace. T GT Fa
139.
Research evidence clearly indicates that both women and men can be effective leaders, even though they tend to have somewhat different leadership styles. T GT Fa
140.
It seems clear that women leaders will be far more successful than men leaders because of their capacity to lead through positive relationships and empowerment. F GT Fa
Drucker’s “Old-Fashioned” Leadership 141.
According to Peter Drucker, effective leadership should be viewed as good “old-fashioned” hard work. T GT Fa
142.
According to Peter Drucker, effective leadership should be viewed as the capacity to use charisma in transforming organizations and the ability to use charisma to influence both enthusiastic and recalcitrant followers. F GT Fa
143.
According to Peter Drucker, effective leaders define and establish a sense of mission, accept leadership as a responsibility rather than a rank, and earn and keep the trust of others. T GT Fa
144.
In the context of Drucker’s “old-fashioned” leadership, defining and establishing a sense of mission involves setting goals, priorities, and standards; keeping them visible; and maintaining them. T GT Ap
145.
According to Drucker’s concept of “old-fashioned” leadership, accepting leadership as a responsibility rather than a rank involves the leader having personal integrity, the leader not blaming others when things go wrong, and the followers believing that the leader’s actions will be consistent with what is said. F GT Ap
146.
In the context of Drucker’s “old-fashioned” leadership, earning and keeping the trust of others involves having leaders who surround themselves with talented people and who develop strong and capable subordinates. F GT Ap
Chapter 13: Leading
505
Moral Leadership 147.
Ethical leadership is leadership by moral standards that meet the ethical test of being “good” and not “bad,” of being “right” and not “wrong.” T KT Fa
148.
Long-term, sustainable success can only be built upon a foundation of solid ethical behaviour. T GT Ap
149.
Leaders should try to be ethical out of fear of being caught for doing something wrong. F GT Ap
150.
Ethical leaders can act with confidence, knowing that their actions are beyond reproach. T GT Ap
151.
Integrity is an essential element of transformational leadership and good old-fashioned leadership. T GT Fa
152.
Integrity involves the leader’s honesty, credibility, and consistency in putting values into action. T KT Fa
153.
John Gardner argues that leaders have a moral obligation to build performance capacities by awakening the potential of each individual. T GT Fa
154.
Authentic leadership activates performance through the positive psychological states of confidence, hope, optimism, and resilience. T KT Fa
155.
The characteristics of charismatic leaders help them to clearly frame moral dilemmas, transparently respond to them, and serve as ethical role models. F GT Fa
Multiple Choice Questions CHAPTER INTRODUCTION 156.
Which of the following statements accurately characterize effective leaders in the contemporary world? A. Leaders understand the diversity of people’s gifts, talents, and skills. B. When leaders recognize the unique qualities of other people, they are less inclined to believe that they ⎯ as leaders ⎯ know what is best. C. Great leaders are able to bring out the best in other people. D. A and C. E. A, B, and C. E GT Ap
506
Schermerhorn & Wright: Management
THE NATURE OF LEADERSHIP (STUDY QUESTION 1) 157.
__________ is the process of inspiring others to work hard to accomplish important tasks. A. Management. B. Motivation. C. Culture building. D. Leadership. E. Teamwork. D KT Fa
158.
Which of the following gives the BEST description of the management function called leading? A. Determining what is to be achieved, setting goals, and identifying appropriate steps. B. Monitoring performance, comparing results, and taking corrective action. C. Defining tasks, assigning personnel, and supporting them with resources. D. Setting goals, allocating resources, and giving corrective feedback. E. Building commitment and enthusiasm for people to apply their talents to help accomplish plans. E GT Fa
159.
Leading is related to the other management functions. Specifically, __________ sets the direction and objectives; __________ brings the resources together to turn plans into action; __________ builds the commitments and enthusiasm needed for people to apply their talents fully to help accomplish plans; and __________ makes sure things turn out right. A. Planning leading organizing controlling. B. Leading planning organizing controlling. C. Planning organizing leading controlling. D. Organizing planning leading controlling. E. Leading organizing planning controlling. C GT Fa
160.
Leadership challenges in the modern workplace include all of the following EXCEPT: A. Shorter time frames for accomplishing things. B. Expectations for success on the first attempt. C. Complex, ambiguous, and multidimensional problems to be solved. D. Maintenance of the status quo in a complex and dynamic business environment. E. Necessity for taking a long-term view even while meeting short-term performance demands. D GT Fa
Leadership and Vision 161.
Vision, which is frequently associated with effective leadership, refers to __________. A. The leader’s capacity to plan, organize, and control. B. A future that one hopes to create or achieve in order to improve upon the present state of affairs. C. The ability to spontaneously take charge in a group situation. D. The leader’s capacity to influence superiors. E. The knowledge of when to use position power and when not use it. B KT Fa
Chapter 13: Leading
507
162.
__________ describes a leader who brings to the situation a clear and compelling sense of the future as well as an understanding of the actions needed to get there successfully. A. Visionary leadership. B. Participative leadership. C. Consultative leadership. D. Charismatic leadership. E. Transformational leadership. A KT Fa
163.
The challenges of visionary leadership go substantially beyond __________. A. Making long-term plans and drafting budgets better than anyone else. B. Excelling at creating organizational structures and assigning people to jobs. C. Ensuring that results compare favorably with original plans. D. Alternatives A and B. E. Alternatives A, B, and C. E GT Fa
164.
Which of the following is NOT a core principle that should be practiced by managers who want to meet the challenges of visionary leadership? A. Be a team player. B. Be a pioneer. C. Be a consistent role model of behaviour. D. Be enthusiastic and inspire others to share a common vision. E. Be first with ideas and right in all you do. E MN Fa
165.
The principles for meeting the challenges of visionary leadership include all of the following EXCEPT: A. Be a pioneer, encouraging innovation and supporting people who have ideas. B. Inspire others through personal example to share in a common vision. C. Be a team player and support the efforts and talents of others. D. Keep emotion out of the workplace. E. Provide a consistent model of how others can and should act. D MN Fa
Power and Influence 166.
The ability to get someone else to do something you want done or to make things happen the way you want is called __________. A. Leadership. B. Political behaviour. C. Manipulation. D. Control. E. Power. E KT Fa
508
Schermerhorn & Wright: Management
167.
Which of the following statements is/are accurate? A. Power is essential to executive success. B. For executive success to occur, the use of power should reflect the desire to influence and control others for the good of the group or organization as a whole. C. For executive success to occur, the use of power should reflect the desire to control for personal satisfaction. D. A and B. E. A and C. D GT Fa
168.
Which of the following statements accurately describe the positive face of power? A. It is the foundation of effective leadership. B. It is the ability to make things happen for the good of the group as a whole. C. It is the ability to make things happen for the good of the organization as a whole. D. All of the above. E. None of the above. D GT Fa
169.
Reward power, coercive power, and legitimate power are different types of __________. A. Formal leadership. B. Position power. C. Informal leadership. D. Personal power. E. Directive leadership. B GT Fa
170.
The three types of position power are __________, __________, and __________. A. Legitimate … expert … coercive. B. Coercive … expert … reward. C. Reward … legitimate … coercive. D. Referent … reward … legitimate. E. Expert … referent … legitimate. C GT Fa
171.
Which of the following would NOT be considered a source of position power for a manager? A. The ability to give special monetary rewards to deserving subordinates. B. Possession of a charismatic personality. C. The ability to recommend disciplinary action for subordinates. D. Being a high-ranking executive in the company. E. The flexibility to schedule some subordinates into the most desirable job assignments. B GT Ap
Chapter 13: Leading
509
172.
__________ is the ability to influence the behaviour of other people because of one’s capacity to offer positive outcomes. A. Legitimate power. B. Expert power. C. Coercive power. D. Referent power. E. Reward power. E KT Fa
173.
What type of power does a manager exercise when he or she offers pay raises, bonuses, special assignments, or compliments as incentives to subordinates? A. Legitimate power. B. Expert power. C. Coercive power. D. Referent power. E. Reward power. E GT Ap
174.
__________ is the ability to influence the behaviour of other people because of one’s capacity to punish or withhold positive outcomes. A. Legitimate power. B. Expert power. C. Coercive power. D. Referent power. E. Reward power. C KT Fa
175.
A manager who withholds positive outcomes, such as special assignments or bonuses as a means for controlling the behaviour of employees is using __________ power. A. Legitimate. B. Expert. C. Coercive. D. Referent. E. Reward. C GT Ap
176.
__________ is the ability to influence the behaviour of other people because of one’s organizational position or status. A. Legitimate power. B. Expert power. C. Coercive power. D. Referent power. E. Reward power. A KT Fa
510
Schermerhorn & Wright: Management
177.
When Linda, a manager in a department store, tells someone to do something and refers to the fact that she is the boss and therefore the other person must do as asked, she is trying to use __________ power to influence the other person’s behaviour. A. Personal. B. Referent. C. Legitimate. D. Coercive. E. Formal. C GT Ap
178.
Expert power and referent power are different types of __________. A. Formal leadership. B. Position power. C. Informal leadership. D. Personal power. E. Transformational leadership. D GT Fa
179.
The two types of personal power are __________ and __________. A. Legitimate … expert. B. Coercive … expert. C. Coercive … legitimate. D. Referent … legitimate. E. Expert … referent. E GT Fa
180.
Which of the following would NOT be considered a source of personal power for a manager? A. The ability to influence because of special expertise. B. Possession of a charismatic personality. C. The ability to influence through personal identification. D. Holding a high-ranking title in the management hierarchy. E. Having specific knowledge to solve a problem. D GT Fa
181.
__________ is the ability to influence the behaviour of other people because of one’s special expertise. A. Legitimate power. B. Expert power. C. Coercive power. D. Referent power. E. Reward power. B KT Fa
Chapter 13: Leading
511
182.
Ralph makes it a point to always offer help in technical areas in which he is skilled and knowledgeable. His subordinates trust his judgment, and form one of the most productive units in the company. What type of power is Ralph exerting? A. Legitimate power. B. Expert power. C. Coercive power. D. Referent power. E. Reward power. B GT Ap
183.
__________ is the ability to influence the behaviour of other people through identification. A. Legitimate power. B. Expert power. C. Coercive power. D. Referent power. E. Reward power. D KT Fa
184.
When a manager’s charisma or interpersonal attractiveness is used to influence the behaviour of subordinates, the manager is using __________. A. Referent power. B. Human relations leadership. C. Expert power. D. Position power. E. Participative leadership. A GT Ap
185.
Successful leadership depends on acquiring and appropriately utilizing __________. A. Legitimate power. B. Reward power and coercive power. C. Expert power. D. Referent power. E. All sources of power E GT Fa
186.
Which of the following items provide an accurate description of the outcome(s) that usually result(s) from a leader’s use of a particular source of power? A. The use of reward power or legitimate power usually produces temporary compliance. B. The use of coercive power produces, at best, temporary compliance, often accompanied by resistance. C. The use of expert power or referent power tends to generate commitment. D. All of the above are accurate descriptions. E. None of the above is an accurate description. D GT Fa
512
Schermerhorn & Wright: Management
187.
In building and using personal power, managers should remember certain key points. Which of the following is NOT one of these key points? A. There is no substitute for expertise. B. Managers should become embedded in a broad network of interpersonal contacts and information flows. C. Likable personal qualities are very important. D. Effort and hard work breed respect. E. Personal behaviour must support expressed values. B GT Fa
188.
Good managers build or enhance their position power by acting in which of the following ways? A. Establishing networks of interpersonal contacts and getting involved in the important information flows within them. B. Taking good care of others who are dependent on them. C. Becoming known as an influential person in the organization. D. All of the above. E. None of the above. D GT Fa
189.
Effective managers build or enhance their position power by capitalizing on __________. A. Centrality. B. Criticality. C. Visibility. D. A and B above. E. A, B, and C above. E GT Fa
Ethics and the Limits to Power 190.
Chester Barnard’s __________ identifies four conditions that determine whether a leader’s directives will be followed and true influence achieved. A. Acceptance theory of authority. B. Personal power theory. C. Position power theory. D. Centralized influence theory. E. Follower theory of influence. A GT Fa
191.
In the acceptance theory of authority, there are certain conditions that determine whether a leader’s directives will be followed and true influence achieved. Which of the following is NOT one of these conditions? A. The other person must truly understand the directive. B. The other person must feel capable of carrying out the directive. C. The other person must be motivated to carry out the directive. D. The other person must believe that the directive is in the organization’s best interests. E. The other person must believe that the directive is consistent with his/her personal values. C GT Fa
Chapter 13: Leading 192.
513
In using the acceptance theory of authority as a starting point for resolving ethical dilemmas, a follower should always ask: A. Where do I (or will I) draw the line? B. At what point do I (or will I) refuse to comply with requests? C. When will I say no? D. All of the above. E. None of the above. D GT Fa
Leadership and Empowerment 193.
The process that managers use to enable and help others to gain power and achieve influence within the organization is known as __________. A. Planning. B. Organizing. C. Empowerment. D. Authority. E. Motivating. C KT Fa
194.
Effective leaders empower others by providing them with the __________ to make decisions and act independently within their areas of expertise. A. Information, problem-solving techniques, team cohesiveness, and information technology. B. Responsibility, concern for people, concern for task, and supportive style. C. Authority, task directions, task orientation, and information technology. D. Trust, task needs, maintenance needs, and participation. E. Information, responsibility, authority, and trust. E GT Fa
195.
Effective leaders __________others by providing them with the information, responsibility, authority, and trust to make decisions and act independently within their areas of expertise. A. Control. B. Influence. C. Empower. D. Direct. E. Mentor. C GT Fa
196.
Which of the following is NOT one of the perspectives on empowerment that effective leaders share? A. Power in organizations is not a zero-sum quantity. B. When people feel powerful, they are more willing to make decisions. C. When people feel powerful, they are more willing to take the actions needed to get their jobs done. D. When people feel powerful, they are more willing to challenge and even resist the organization’s leaders. E. Success in contemporary companies may depend on how much power can be mobilized throughout the organization’s workforce. D GT Fa
514
Schermerhorn & Wright: Management
197.
Leadership through empowerment can be exercised by __________. A. Getting others involved in selecting work assignments and methods for accomplishing them. B. Finding out what others think and letting them help design the solutions. C. Maintaining high morale and confidence by recognizing success and encouraging high performance. D. All of the above. E. None of the above. D MN Fa
198.
Which is NOT a tip regarding how to empower others? A. Get others involved in selecting their work assignments. B. Encourage others to take initiative and make decisions. C. Create an environment of cooperation, information sharing, and shared ownership of goals. D. Provide close supervision and tight control. E. Let others put their ideas and solutions into practice. D MN Fa
LEADERSHIP TRAITS AND BEHAVIOURS (STUDY QUESTION 2) Search for Leadership Traits 199.
__________ theories of leadership address the question of: “What personal characteristics separate effective leaders from ineffective leaders?” A. Trait. B. Behavioural. C. Contingency. D. Situational. E. Path-goal. A GT Fa
200.
The __________ approach to the study of leadership focuses on a leader’s personal characteristics as the primary determinants of leadership success. A. Trait. B. Behavioural. C. Contingency. D. Situational. E. Path-goal. A GT Fa
Chapter 13: Leading
515
201.
Which of the following statements accurately describe the search for traits that characterize effective leaders? A. Certain personal traits do seem to identify successful leadership, although they must always be considered along with situational factors. B. Research indicates that physical traits such as height, weight, and physique have no relationship to leadership success. C. Some personal traits, such as drive, self-confidence, creativity, cognitive ability, business knowledge, motivation, flexibility, and honesty and integrity are considered to be important for leadership success. D. All of the above statements are accurate. E. None of the above statements are accurate. D GT Fa
202.
Personal traits that are common among successful leaders include all of the following EXCEPT: A. Drive, motivation, and self-confidence. B. Honesty and integrity. C. Cognitive ability and business knowledge. D. Being a people person. E. Creativity and flexibility. D GT Fa
Focus on Leadership Behaviours 203.
__________ is concerned with the recurring pattern of behaviours exhibited by a leader. A. Behavioural leadership theory. B. Situational control. C. Supportive leadership. D. Leadership style. E. Democratic leadership. D KT Fa
204.
According to leader behaviour research, a manager who plans the work to be done, assigns task responsibilities, sets clear work standards, and monitors performance results is __________. A. High in concern for task. B. High in concern for people. C. Low in concern for task. D. Low in concern for people. E. Low in concern for task, high in concern for people. A GT Fa
205.
A manager who has high concern for task uses a leadership style that emphasizes all of the following EXCEPT: A. Planning and defining work to be done. B. Assigning task responsibilities. C. Setting clear work standards. D. Trusting subordinates. E. Monitoring task performance. D GT Fa
516
Schermerhorn & Wright: Management
206.
In the leadership literature, “concern for task” is also known as __________. A. Initiating structure. B. Task orientation. C. Consideration. D. A and B. E. A and C. D GT Fa
207.
According to leader behaviour research, a manager who acts warm and supportive toward followers, maintains good social relations with them, respects their feelings, is sensitive to their needs, and shows trust in them is __________. A. High in concern for task. B. High in concern for people. C. Low in concern for people. D. Low in concern for task. E. High in concern for task, low in concern for people. B GT Fa
208.
A manager who has high concern for people uses a leadership style that emphasizes all of the following EXCEPT: A. Developing rapport with followers and respecting their feelings. B. Acting warm and supportive toward followers. C. Being sensitive to followers’ needs. D. Showing trust in followers. E. Planning and assigning followers’ work and setting clear work standards. E GT Fa
209.
In the leadership literature, “concern for people” is also known as __________. A. Initiating structure. B. Consideration. C. Relationship orientation. D. A and C. E. B and C. E GT Fa
210.
The Blake and Mouton Leadership Grid identifies alternative leadership styles that reflect different combinations of __________ A. Concern for task and concern for people. B. Consideration and employee-centeredness. C. Consideration and relationship orientation. D. Initiating structure and job-centeredness. E. Initiating structure and task orientation. A GT Fa
Chapter 13: Leading
517
211.
In the Blake and Mouton Leadership Grid, __________ is the preferred leadership style that reflects a high concern for both people and the task. A. Team management. B. Authority-obedience management. C. Country club management. D. Impoverished management. E. Middle-of-road management. A GT Fa
212.
In the Blake and Mouton Leadership Grid, __________ reflects a high concern for the task and a low concern for people. A. Team management. B. Authority-obedience management. C. Country club management. D. Impoverished management. E. Middle-of-road management. B GT Fa
213.
In the Blake and Mouton Leadership Grid, __________ reflects a high concern for people and a low concern for the task. A. Team management. B. Authority-obedience management. C. Country club management. D. Impoverished management. E. Middle-of-road management. C GT Fa
214.
In the Blake and Mouton Leadership Grid, __________ reflects a low concern for both the task and people. A. Team management. B. Authority-obedience management. C. Country club management. D. Impoverished management. E. Middle-of-road management. D GT Fa
215.
In the Blake and Mouton Leadership Grid, __________ reflects a moderate emphasis on both task and people concerns. A. Team management. B. Authority-obedience management. C. Country club management. D. Impoverished management. E. Middle-of-road management. E GT Fa
518
Schermerhorn & Wright: Management
Classic Leadership Styles 216.
A(n) __________ of leadership emphasizes task over people, keeps authority and information within the leader’s tight control, and acts in a unilateral command-and-control fashion. A. Moral style. B. Autocratic style. C. Laissez-faire style. D. Democratic style. E. Good old-fashioned style. B KT Fa
217.
A(n) __________ of leadership shows little concern for task, lets the group make decisions, and acts with a “do the best you can and don’t bother me” attitude. A. Moral style. B. Autocratic style. C. Laissez-faire style. D. Democratic style. E. Good old-fashioned style. C KT Fa
218.
A(n) __________ of leadership is committed to both task and people, getting things done while sharing information, encouraging participation in decision making, and helping people develop their skills and competencies. A. Moral style. B. Autocratic style. C. Laissez-faire style. D. Democratic style. E. Good old-fashioned style. D KT Fa
CONTINGENCY APPROACHES TO LEADERSHIP (STUDY QUESTION 3) 219.
__________ attempt to answer the question: “When and under what circumstances is a particular leadership style preferable to others?” A. Power-based approaches to leadership. B. Trait approaches to leadership. C. Behavioural approaches to leadership. D. Contingency approaches to leadership. E. Ethical approaches to leadership. D GT Fa
220.
Modern leadership theories reflect a(n) __________ that attempts to match situational demands with appropriate leader behaviours. A. Contingency perspective B. Trait perspective. C. Systems perspective. D. Power perspective. E. Ethical influence perspective. A GT Fa
Chapter 13: Leading
519
Fiedler’s Contingency Model 221.
The basic premise of Fiedler’s contingency theory is that leadership success depends on __________. A. The manager’s relationship with the employees. B. The manager’s ability to change styles, given the situation. C. The match between leadership style and situational demands. D. The personality of the manager and the employees. E. The manager’s knowledge of the work situation. C GT Fa
222.
In Fiedler’s contingency model, the __________ scale is used to measure a person’s leadership style. A. Leader personality contingency. B. Leadership profile categorization. C. Least-preferred coworker. D. Leader participation contingencies. E. Leadership power concerns. C GT Fa
223.
In Fiedler’s contingency model, a person’s leadership style is described as either __________ or __________. A. Task-motivated relationship-motivated. B. Team manager impoverished manager. C. Delegating participating D. Selling telling E. Supportive achievement-oriented. A GT Fa
224.
Fred Fiedler, the developer of the contingency theory of leadership, asserts that four of the five following statements are true. Which statement is NOT true from Fiedler’s perspective? A. Leadership style is part of one’s personality. B. Competent leaders can adapt their behavioural styles to fit the demands of differing situations they encounter. C. Leadership style must be fit to the situation. D. Leadership style is relatively enduring and difficult to change. E. The amount of situational control is crucial in determining the correct style-situation fit. B GT Fa
225.
What are the three variables that determine a leader’s situational control according to Fiedler’s contingency theory? A. Referent power, leadership style, and task structure. B. Personal power, leadership style, and leader-member relations. C. Expert power, task structure, and leader-member relations. D. Position power, task structure, and leader-member relations. E. Expert power, leadership style, and task structure. D GT Fa
520
Schermerhorn & Wright: Management
226.
The quality of leader-member relations refers to the degree to which __________. A. The group supports the leader. B. Task goals, procedures, and guidelines are clear. C. A leader has the power to reward and punish subordinates. D. A leader can predict the behaviour of group members. E. Group members identify with the leader as a person. A GT Fa
227.
The extent to which task goals, procedures, and guidelines are clearly spelled out is called __________. A. Quality of leader-member relations. B. Amount of position power. C. Leadership style. D. Degree of task structure. E. Situational control. D GT Fa
228.
The extent to which the position gives the leader power to reward and punish subordinates is called __________. A. Quality of leader-member relations. B. Amount of position power. C. Leadership style. D. Degree of task structure. E. Situational control. B GT Fa
229.
Assume you are the supervisor of a group of bank tellers. Your subordinates are highly supportive, their jobs are well defined, and you have clear authority to evaluate and reward their performance. Which of the following leadership styles would be most recommended based upon Fiedler’s theory? A. Task-oriented. B. Relationship-oriented. C. Human relations. D. Team-oriented. E. Achievement-oriented. A GT Ap
230.
Suppose that the following features characterize the leadership situation in a specific work team: (a) The skills required in each team member’s job, the order in which tasks are to be performed, and the interdependencies among the various jobs are all clearly defined. (b) The supervisor frequently criticizes team members and readily punishes them because he has the power to do so. (c) Because the supervisor is punitive, the team members try to undermine his authority and sabotage his leadership. Which leadership style likely would be most effective in this situation? A. Task-oriented. B. Relationship-oriented. C. Human relations. D. Team-oriented. E. Achievement-oriented. B GT Ap
Chapter 13: Leading
521
231.
One guiding proposition of Fiedler’s contingency theory of leadership is that a _________ style works best in low-control situations and a __________ style works best in high-control situations. A. Task-oriented … relationship-oriented. B. Relationship-oriented … task-oriented. C. Task-oriented … task-oriented. D. Relationship-oriented … relationship-oriented. E. Achievement-oriented … supportive. C GT Fa
232.
One guiding proposition of Fiedler’s contingency theory of leadership is that a _________ style works best in __________ situations. A. Task-oriented … moderate-control. B. Relationship-oriented … high-control. C. Relationship-oriented … low-control. D. Relationship-oriented … moderate-control. E. Achievement-oriented … moderate-control. D GT Fa
Hersey-Blanchard Situational Leadership Model 233.
The basic premise of the Hersey-Blanchard situational leadership model is that __________. A. Managers should find situations that suit their leadership style. B. Managers should first define the situational demands of the work setting. C. Managers should determine the amount of situational control they believe they have in each situation. D. Managers should adjust their leadership styles depending on the readiness of the followers to perform in a given situation. E. Managers should use the leadership style that is most comfortable for them. D GT Fa
234.
According to Hersey and Blanchard’s situational leadership model, employee readiness is determined by __________. A. Ability, willingness, and confidence of the followers in performing required tasks. B. Position power, task structure, and leader-member relations. C. Task, relationship, and decision-making ability of the followers. D. Motivation, desire, and control of the leader. E. Intelligence, ability, and motivation of the followers. A GT Fa
235.
Which of the following leadership styles and task-relationship combinations is/are correctly matched? A. Delegating is a low-task, low-relationship style. B. Participating is a low-task, high-relationship style. C. Selling is a high-task, high-relationship style. D. Telling is a high-task, low-relationship style. E. All of these are correctly matched. E GT Fa
522
Schermerhorn & Wright: Management
236.
In Hersey and Blanchard’s situational leadership model, a manager who allows the group to make and take responsibility for task decisions uses which leadership style? A. Telling. B. Participating. C. Delegating. D. Asking. E. Selling. C GT Fa
237.
In Hersey and Blanchard’s situational leadership model, a manager who emphasizes the sharing of ideas and decision making uses which leadership style? A. Congenial. B. Delegating. C. Participating. D. Asking. E. Selling. C GT Fa
238.
In Hersey and Blanchard’s situational leadership model, a manager who explains task directions persuasively and with much support uses which leadership style? A. Telling. B. Selling. C. Delegating. D. Directing. E. Participating. B GT Fa
239.
In Hersey and Blanchard’s situational leadership model, a manager who gives specific task directions and closely supervises work progress uses which leadership style? A. Telling. B. Participating. C. Delegating. D. Asking. E. Selling. A GT Fa
240.
Mike is highly capable of performing his job in terms of ability, willingness, and confidence. According to Hersey and Blanchard, which style would work best in this situation? A. Telling. B. Selling. C. Directing. D. Delegating. E. Participating. D GT Ap
Chapter 13: Leading
523
241.
Janice is not very capable of performing her job in terms of ability, willingness, and confidence. According to Hersey and Blanchard, which style would work best in this situation? A. Telling. B. Selling. C. Directing. D. Delegating. E. Participating. A GT Ap
242.
Denise is very capable of performing her new job assignment but seems to be unwilling or insecure in meeting the demands of the assignment. According to Hersey and Blanchard, which style would work best in this situation? A. Telling. B. Selling. C. Directing. D. Delegating. E. Participating. E GT Ap
243.
Karl is willing and exudes an aura of confidence in taking on his new tasks. However, he lacks adequate experience and skills to do the job. According to Hersey and Blanchard, which style would work best in this situation? A. Telling. B. Selling. C. Directing. D. Delegating. E. Participating. B GT Ap
House’s Path-Goal Leadership Theory 244.
The basic premise of House’s path-goal contingency leadership theory is that __________. A. Effective leaders should adapt their style to suit the employee. B. Since leadership style is part of the individual’s basic character, effective leaders will find a situation most suitable to their style. C. Managers can be taught the one best leadership style. D. Effective leaders clarify the path through which followers can achieve both task-related and personal goals. E. Effective leaders provide the motivation for their followers to achieve organizational objectives. D GT Fa
524
Schermerhorn & Wright: Management
245.
According to House’s path-goal leadership model, which of the following behaviours is part of a directive leadership style? A. Showing concern for the status and needs of subordinates. B. Soliciting the suggestions of subordinates. C. Displaying confidence that subordinates are able to meet high standards. D. Treating subordinates as equals. E. Maintaining definite standards of performance. E GT Fa
246.
According to House’s path-goal leadership theory, a manager who __________ is showing a supportive leadership style A. Lets subordinates know what performance is expected. B. Urges subordinates to perform at their highest level. C. Consults with subordinates before making job changes. D. Treats subordinates as equals and acts friendly toward them. E. Uses subordinates’ suggestions in making decisions. D GT Fa
247.
According to House’s path-goal model, which of the following behaviours is part of achievementoriented leadership? A. Showing concern for the status and needs of subordinates. B. Soliciting the suggestions of subordinates. C. Displaying confidence that subordinates are able to meet high standards. D. Using suggestions of subordinates when making decisions. E. Maintaining definite standards of performance. C 344 GT Fa
248.
According to the path-goal leadership theory, a manager is showing a participative leadership style when he/she __________. A. Lets subordinates know what performance is expected. B. Expects the highest levels of performance. C. Consults with subordinates before making decisions. D. Treats group members as equals during decision making. E. Acts friendly to subordinates. C GT Fa
249.
Len and John are managers. Len spends a lot of time scheduling work to be done and providing guidance on its accomplishment. John takes great care to listen to his subordinates’ concerns and act friendly toward them. In the terminology of House’s path-goal theory, Len is acting as a(n) __________ leader, while John is acting as a(n) __________ leader. A. Directive…achievement-oriented. B. Directive…supportive. C. Achievement-oriented…participative. D. Achievement-oriented…supportive. E. Autocratic…democratic. B GT Ap
Chapter 13: Leading
525
250.
House’s path-goal leadership model advises managers to use leadership styles that complement situational needs. Which of the following statements accurately represents the advice provided by the path-goal model? A. When job assignments are ambiguous, directive leadership is needed to clarify task objectives and expected rewards. B. When worker self-confidence is low, supportive leadership is needed to increase confidence by emphasizing individual abilities and offering needed task assistance. C. When performance incentives are poor, participative leadership is needed to clarify individual needs and identify appropriate rewards. D. When task challenge is insufficient, achievement-oriented leadership is needed to set goals and raise performance aspirations. E. All of these are accurate statements. E GT Ap
251.
Aspects of the work setting and the people involved that can reduce the need for a leader’s personal involvement are referred to as __________. A. Leadership aids. B. Corporate baby-sitters. C. Leader clones. D. Substitutes for leadership. E. Mock leaders. D KT Fa
252.
Which of the following NOT a substitute for leadership? A. Ability and experience of subordinates. B. Clarity of organizational plans and formalization of rules. C. Routineness and availability of performance feedback. D. Availability of information technology. E. Independence of subordinates. D 345 GT Fa
Vroom-Jago Leader-Participation Model 253.
The Vroom-Jago leader-participation model is designed to __________. A. Enable leaders to define their leadership style. B. Enable leaders to define the situational characteristics of the work setting so that the best leadership style can be used. C. Help leaders choose an appropriate decision-making method for any problem situation. D. Help leaders develop suitable leadership traits. E. Provide ready-made decisions concerning leadership situations. C GT Fa
254.
According to the Vroom-Jago leader-participation model, a(n) __________ occurs when the leader makes the decision alone and then communicates it to the work group. A. Authority decision. B. Delegating decision. C. Power-oriented decision. D. Consultative decision. E. Group decision. A KT Fa
526
Schermerhorn & Wright: Management
255.
According to the Vroom-Jago leader-participation model, a(n) __________ occurs when the leader makes the decision after receiving information, advice, or opinions from group members. A. Authority decision. B. Employee-centered. C. Job-centered. D. Consultative decision. E. Group decision. D KT Fa
256.
According to the Vroom-Jago leader-participation model, a(n) __________ occurs when all team members participate in making a decision. A. Authority decision. B. Employee involvement decision. C. Middle-of-road management decision. D. Consultative decision. E. Group decision. E KT Fa
257.
Which of the following statements correctly describes the nature of the different decision methods that occur in the Vroom-Jago leader-participation model? A. An authority decision is made by the leader and then communicated to the group. B. A consultative decision is made by a leader after receiving information, advice, or opinions from group members. C. A group decision is made with the full participation of all group members. D. All of the above. E. None of the above. D KT Fa
258.
The Vroom-Jago leader-participation model identifies several different decision-making options that are available for managers and leaders. The __________ option is being used when the manager or leader decides how to solve the problem and communicates the decision to the group. A. Decide alone.
B. Consult individually. C. Consult with group. D. Facilitate. E. Delegate. A 259.
GT
Fa
The Vroom-Jago leader-participation model identifies several different decision-making options that are available for managers and leaders. The __________ option is being used when the manager or leader makes the decision after sharing the problem and consulting individually with group members to get their suggestions. A. Decide alone.
B. Consult individually. C. Consult with group. D. Facilitate. E. Delegate. B
GT
Fa
Chapter 13: Leading 260.
527
The Vroom-Jago leader-participation model identifies several different decision-making options that are available for managers and leaders. The __________ option is being used when the manager or leader makes the decision after convening the group, sharing the problem, and consulting with everyone to get their suggestions. A. Decide alone.
B. Consult individually. C. Consult with group. D. Facilitate. E. Delegate. C 261.
GT
Fa
The Vroom-Jago leader-participation model identifies several different decision-making options that are available for managers and leaders. The __________ option is being used when the manager or leader convenes the group, shares the problem, and then facilitates group discussion to make a decision. A. Decide alone.
B. Consult individually. C. Consult with group. D. Facilitate. E. Delegate. D 262.
GT
Fa
The Vroom-Jago leader-participation model identifies several different decision-making options that are available for managers and leaders. The __________ option is being used when the manager or leader convenes the group and delegates to group members the authority to define the problem and make a decision. A. Decide alone.
B. Consult individually. C. Consult with group. D. Facilitate. E. Delegate. E 263.
GT
Fa
Which of the following statements accurately describe the Vroom-Jago leader-participation model? A. Problem situations are characterized in terms of decision quality, decision acceptance, and decision time. B. Decision quality is based on who has information that is needed for problem solving. C. Decision acceptance is based on the importance of subordinate acceptance to eventual solution implementation. D. Decision time is based on the time available to make and implement the decision. E. Each of the above statements provides an accurate description of the Vroom-Jago leaderparticipation model. E KT Fa
528
Schermerhorn & Wright: Management
264.
The Vroom-Jago leader-participation theory indicates that a leader should use the more authorityoriented decision method under all of the following conditions EXCEPT: A. When the leader personally has the expertise needed to solve the problem. B. When the leader is confident and capable of acting alone. C. When others are likely to accept the decision the leader makes. D. When little or no time is available for discussion. E. When the situation is highly favorable for the leader. E GT Fa
265.
The Vroom-Jago leader-participation theory indicates that a leader should use the more grouporiented and participative decision methods under all of the following conditions EXCEPT: A. When the leader lacks sufficient expertise and information to solve a problem by himself/herself. B. When the problem is unclear and help is needed to clarify the situation. C. When decision support system technology is available. D. When acceptance of the decision and commitment by others is necessary for its implementation. E. When adequate time is available to permit true participation. C GT Fa
266.
Within the context of the Vroom-Jago leader-participation model, the potential benefits of participative decision methods include __________. A. Helping to improve decision quality. B. Helping to improve decision acceptance. C. Helping to develop leadership potential in others. D. A and B. E. A, B, and C. E GT Fa
267.
Which of the following statements accurately describe the potential disadvantage(s) of participative decision methods within the context of the Vroom-Jago leader-participation model? A. Participative decision methods may result in lost efficiency. B. Participative decision methods improve decision acceptance and quality. C. Participative decision methods are ineffective when problems must be resolved immediately. D. A and B. E. A and C. E GT Fa
TRANSFORMATIONAL LEADERSHIP (STUDY QUESTION 4) 268.
A(n) ____________ leader develops special leader-follower relationships and inspires followers in extraordinary ways. A. Participative. B. Charismatic. C. Transformational. D. Transactional. E. Old-fashioned. B KT Fa
Chapter 13: Leading
529
Transformational and Transactional Leadership 269.
____________ leadership focuses on directing the efforts of others through the use of tasks, rewards, and structures. A. Participative. B. Charismatic C. Transformational. D. Transactional. E. Old-fashioned. D KT Fa
270.
____________ leadership is inspirational leadership that gets people to put forth extraordinary effort and achieve extraordinary performance. A. Participative. B. Charismatic. C. Transformational. D. Transactional. E. Old-fashioned. C KT Fa
271.
Which of the following is a signal that transformational leadership is likely being used? A. Followers are enthusiastic about the leader and his or her ideas. B. Followers work hard to support the leader. C. Followers remain loyal and devoted to the leader. D. Followers strive for superior performance accomplishments. E. All of the above are signals that transformational leadership is being used. C GT Ap
272.
By itself, __________ leadership is insufficient to meet contemporary leadership challenges. A. Participative. B. Charismatic. C. Transactional. D. Transformational. E. Old-fashioned. C GT Fa
273.
__________ leadership is a building block that helps support __________ leadership. A. Participative transactional. B. Charismatic old-fashioned. C. Transformational task-oriented. D. Transactional transformational. E. Old-fashioned transactional. D GT Fa
530
Schermerhorn & Wright: Management
Qualities of a Transformational Leader 274.
Having ideas and a clear sense of direction; communicating them to others; and developing excitement about accomplishing shared “dreams” describe the transformational leadership attribute of __________. A. Vision. B. Charisma. C. Symbolism.
D. Empowerment. E. Intellectual stimulation. A GT Fa 275.
Using the power of personal reference and emotion to arouse others’ enthusiasm, faith, loyalty, pride, and trust in themselves ” describes the transformational leadership attribute of __________. A. Vision. B. Charisma. C. Symbolism.
D. Empowerment. E. Intellectual stimulation. B GT Fa 276.
Identifying “heroes” and holding spontaneous and planned ceremonies to celebrate excellence and high achievement ” describe the transformational leadership attribute of __________. A. Charisma. B. Symbolism.
C. Empowerment. D. Intellectual stimulation. E. Integrity. B GT Fa 277.
Helping others develop, removing performance obstacles, sharing responsibilities, and delegating truly challenging work ” describe the transformational leadership attribute of __________. A. Vision. B. Charisma. C. Symbolism.
D. Empowerment. E. Intellectual stimulation. D GT Fa 278.
Gaining the involvement of others by creating awareness of problems and stirring their imaginations” describes the transformational leadership attribute of __________. A. Charisma. B. Symbolism.
C. Empowerment. D. Intellectual stimulation. E. Integrity. D GT Fa
Chapter 13: Leading 279.
531
Being honest and credible, acting consistently out of personal conviction, and following through on commitments” describe the transformational leadership attribute of __________. A. Charisma. B. Symbolism.
C. Empowerment. D. Intellectual stimulation. E. Integrity. E GT Fa
CURRENT ISSUES IN LEADERSHIP DEVELOPMENT (STUDY QUESTION 5) Emotional Intelligence 280.
__________ is ability to manage our emotions in social relationships. A. Empowerment. B. Contingent leadership. C. Moral leadership. D. Leadership openness. E. Emotional intelligence. E KT Fa
281.
Which of the following statements is/are correct? A. Emotional intelligence refers to a person’s ability to manage his/her emotions in social relationships. B. A leader’s emotional intelligence significantly influences his or her effectiveness, especially in senior management positions. C. Emotional intelligence skills are genetically based; they cannot be learned. D. A and B. E. None of the above is a correct statement. D GT Fa
282.
The components of emotional intelligence include all of the following EXCEPT: A. The ability to understand one’s own moods and emotions, and understand their impact on one’s work and on others. B. The ability to think before acting, and to control otherwise disruptive impulses. C. The ability to work hard with persistence, and for reasons other than money and status. D. The ability to establish appropriate work goals for others, and to provide the necessary task structures for achieving them E. The ability to understand the emotions of others, and to use this understanding to better relate to others. D GT Fa
532
Schermerhorn & Wright: Management
Gender and Leadership 283.
Women tend to rely on the __________ leadership approach and men tend to rely on the __________ leadership approach. A. Assertive … laissez-faire. B. Transactional … transformational. C. Interactive … transactional. D. Transactional … interactive. E. Laissez-faire … democratic. C GT Fa
284.
Women tend to exhibit __________and __________ behaviours in their leadership approaches. A. Democratic … autocratic. B. Autocratic … participative. C. Laissez-faire … democratic. D. Democratic … participative. E. Autocratic … laissez-faire. D GT Fa
285.
Men tend to exhibit __________and __________ behaviours in their leadership approaches. A. Assertive … directive. B. Supportive … directive. C. Laissez-faire … supportive. D. Assertive … democratic. E. Democratic … supportive. A GT Fa
286.
Given the current emphasis on shared power, communication, cooperation, and participation in new-form organizations, __________ leadership appears to be an excellent fit with the demands of a diverse workforce and the new workplace. A. Assertive. B. Transactional. C. Interactive. D. Country club. E. Laissez-faire. C GT Fa
287.
Which of the following descriptions of research on gender and leadership is NOT accurate? A. Research evidence clearly indicates that both women and men can be effective leaders, even though they tend to have somewhat different leadership styles. B. Women tend to use interactive leadership that focuses on building consensus and good interpersonal relations through communication and involvement. C. Men tend to take a more transactional approach to leadership, relying more on directive and assertive behaviours, and using authority in a traditional “command and control” sense. D. Given the current emphasis on shared power, communication, cooperation, and participation in new-form organizations, interactive leadership appears to be an excellent fit with the demands of a diverse workforce and the new workplace. E. It seems clear that women leaders will be far more successful than men leaders because of their capacity to lead through positive relationships and empowerment. E GT Fa
Chapter 13: Leading
533
Drucker’s “Old-Fashioned” Leadership 288.
According to Peter Drucker, effective leadership should be viewed as __________. A. An outward manifestation of personal charisma. B. Good “old-fashioned” hard work. C. The ability to inspire followers. D. The capacity to use charisma in transforming organizations. E. The ability to use charisma to influence both enthusiastic and recalcitrant followers. B GT Fa
289.
According to Peter Drucker, which of the following factors is/are essential for effective leadership? A. Effective leaders define and establish a sense of mission. B. Effective leaders accept leadership as a responsibility rather than a rank. C. Effective leaders earn and keep the trust of others. D. All of the above. E. None of the above. D GT Fa
290.
In the context of Drucker’s “old-fashioned” leadership, defining and establishing a sense of mission involves __________. A. Setting goals, priorities, and standards. B. Keeping goals, priorities, and standards visible. C. Maintaining goals, priorities, and standards. D. All of the above. E. None of the above. D GT Ap
291.
According to Drucker’s concept of “old-fashioned” leadership, accepting leadership as a responsibility rather than a rank involves having __________. A. Leaders who surround themselves with talented people. B. Leaders who are not afraid to develop strong and capable subordinates. C. Followers who believe the leader means what he or she says. D. A and B. E. A and C. D GT Ap
292.
In the context of Drucker’s “old-fashioned” leadership, earning and keeping the trust or others involves which of the following elements? A. The leader has personal integrity. B. Good leaders do not blame others when things go wrong. C. The followers believe that the leader’s actions will be consistent with what is said. D. A and B. E. A and C. E GT Ap
534
Schermerhorn & Wright: Management
Moral Leadership 293.
__________ is leadership by moral standards that meet the ethical test of being “good” and not “bad,” of being “right” and not “wrong.” A. Good old-fashioned leadership. B. Proper transformational leadership. C. Ethical leadership. D. Charismatic leadership. E. Right-headed transactional leadership. C KT Fa
294.
Which of the following statements about ethical leadership is/are accurate? A. Long-term, sustainable success can only be built upon a foundation of solid ethical behaviour. B. Leaders should try to be ethical out of fear of being caught for doing something wrong. C. Ethical leaders can act with confidence, knowing that their actions are beyond reproach. D. A and C. E. A, B, and C. D GT Ap
295.
__________ is an essential element of transformational leadership and good old-fashioned leadership. A. Initiating structure. B. Consideration. C. Employee-centeredness. D. Country club management. E. Integrity. E GT Fa
296.
__________ involves the leader’s honesty, credibility, and consistency in putting values into action. A. Consideration. B. Supportive leadership. C. Integrity. D. Visionary leadership. E. Transformational leadership C KT Fa
297.
In the context of ethical leader behaviour, a leader who __________ earns the trust of followers. A. Exhibits the task-oriented leadership style. B. Is visionary. C. Exercises the leader behaviour of consideration. D. Acts as a transformational leader. E. Has integrity. E GT Ap
Chapter 13: Leading
535
298.
John Gardner argues that leaders have a __________ obligation to build performance capacities by awakening the potential of each individual. A. Planning. B. Control. C. Moral. D. Human resources. E. Motivational. C GT Fa
299.
__________ activates performance through the positive psychological states of confidence, hope, optimism, and resilience. A. Transactional leadership. B. Charismatic leadership. C. Authentic leadership. D. Good old-fashioned leadership. E. Transformational leadership. C KT Fa
300.
The characteristics of __________ help them to clearly frame moral dilemmas, transparently respond to them, and serve as ethical role models. A. Transactional leaders. B. Transformational leaders. C. Good old-fashioned leaders. D. Charismatic leaders. E. Authentic leaders. E GT Fa
Essay Questions 301.
What is leadership? What is power? What is empowerment? How are these concepts interrelated? Suggested Answer: Leadership is the process of inspiring others to work hard to accomplish important tasks. Power is the ability to get someone else to do something you want done or to make things happen the way you want for the good of the group or organization as a whole. Empowerment is the process through which managers enable and help others to gain power and achieve influence within the organization. Power in organizations is not a “zero-sum” quantity. Power can be expanded through leadership that involves other people. This can be accomplished by doing the following: • • • • •
Getting others involved in selecting their work assignments and the methods for accomplishing tasks. Creating an environment of cooperation, information sharing, discussion, and shared ownership of goals. Encouraging others to take initiative, make decisions, and use their knowledge. Finding out what others think and let them help design the solutions when problems arise. Staying out of the way; giving others the freedom to put their ideas and solutions into practice.
536
Schermerhorn & Wright: Management •
Maintaining high morale and confidence by recognizing successes and encouraging high performance.
By empowering others, the leader becomes more influential and better able to exercise leadership.
302.
What is leadership style? Explain how concern for task and concern for people are related to leadership style. Suggested Answer: Leadership style refers to the recurring pattern of behaviours exhibited by leader. Research on leadership behaviour has revealed two basic underlying dimensions: (a) concern for the task to be accomplished, and (b) concern for the people doing the work. A leader high in concern for task engages in the following behaviours: plans and defines work to be done, assigns task responsibilities, sets clear work standards, urges task completion, and monitors performance results. A leader high in concern for people engages in the following behaviours: acts warm and supportive toward followers, develops social rapport with followers, respects the feelings of followers, is sensitive to followers’ needs, and shows trust in followers. Different combinations of concern for task and concern for people define specific leadership styles. The Blake and Mouton Leadership Grid provides a convenient way for categorizing different leadership styles in relation to concern for task (or production) and concern for people. The Grid identifies the following styles: • • • • •
303.
Team management is the preferred leadership style; it reflects a high concern for both people and production. Authority-obedience management reflects a high concern for production and a low concern for people. Country club management reflects a high concern for people and a low concern for production. Impoverished management reflects a low concern for both production and people. Middle-of-road management is non-committal with respect to both production and people concerns.
Discuss the similarities and differences in any two of the following leadership models: the Fiedler, Hersey and Blanchard, House, and Vroom-Jago contingency models of leadership. What guidance does each contingency model provide for leaders? Suggested Answer: Fiedler’s contingency model is based on the premise that leadership success depends on a match between leadership style and situational demands. Fiedler argues that leadership style is part of one’s personality, and is therefore enduring and relatively difficult to change. Consequently, leadership style ⎯ task motivated or relationship motivated ⎯ must be fit to the situation. The amount of situational control ⎯ as indicated by the quality of leader-member relations (good or poor), the degree of task structure (high or low), and the amount of position power (strong or weak) ⎯ is crucial to determining the correct style-situation fit. Fiedler’s theory proposes that a task-oriented leader will be most successful in either very favorable (high control)
Chapter 13: Leading
537
or very unfavorable (low control) situations, whereas a relationship-oriented leader will be most successful in situations of moderate control. The Hersey-Blanchard situational model suggests that successful leaders adjust their styles depending on the readiness of followers to perform in a given situation. Readiness refers to how able, willing, and confident followers are in performing required tasks. According to this model, there are four possible leadership styles that result from different combinations of taskoriented (i.e., guidance required) and relationship-oriented (i.e., support required) behaviours. These alternative leadership styles are: • • • •
Delegating: Allowing the group to make task decisions and take responsibility for them; a low-task, low-relationship style. This style works best in high-readiness situations. Participating: Emphasizing shared ideas and participative decisions on task directions; a low-task, high-relationship style. This style works best in low- to moderate-readiness situations. Selling: Explaining task directions in a supportive and persuasive way; a high-task, highrelationship style. This style works best in moderate- to high-readiness situations. Telling: Giving specific task directions and closely supervising work; a high-task, lowrelationship style. This style works best in low-readiness situations.
Hershey and Blanchard believe the leader’s style can and should be changed as followers mature over time. If the correct leadership styles are used in lower readiness situations, followers will “mature” and grow in ability, willingness and confidence. According to House’s path-goal theory, effective leaders: clarify the paths through which followers can achieve both task-related and personal goals, help people progress along these paths, remove barriers to goal accomplishment, and provide appropriate rewards for task accomplishment. Four leadership styles are used in dealing with path-goal relationships. These four leadership styles are: • • • •
Directive leadership: Letting subordinates know what’s expected; giving directions on what to do and how; scheduling work to be done; maintaining definite standards of performance; and clarifying the leader’s role in the group. Supportive leadership: Doing things to make the work pleasant; treating group members as equals; being friendly and approachable; and showing concern for the well-being of subordinates. Achievement-oriented leadership: Setting challenging goals; expecting the highest levels of performance; emphasizing continuous improvement in performance; and displaying confidence in meeting high standards. Participative leadership: Involving subordinates in decision making; consulting with subordinates; asking for suggestions from subordinates; using subordinates’ suggestions when making decisions.
The path-goal model advises managers to always use leadership styles that complement situational needs. An effective leader contributes things that are not already present (i.e., he/she avoids being redundant). The Vroom-Jago leader-participation model helps a leader choose the method of decision making that best fits the nature of the problem situation. An effective leader is able to consistently choose and implement the decision-making alternative that is most appropriate for the situation. These decision-making options are as follows:
538
Schermerhorn & Wright: Management • • • • •
Decide alone: The manager decides how to solve the problem and communicates the decision to the group. Consult individually: The manager makes the decision after sharing the problem and consulting individually with group members to get their suggestions. Consult with group: The manager makes the decision after convening the group, sharing the problem, and consulting with everyone to get their suggestions. Facilitate: The manager convenes the group, shares the problem, and then facilitates group discussion to make a decision. Delegate: The manager convenes the group and delegates to group members the authority to define the problem and make a decision.
A leader should use more authority-oriented decision methods when he or she has sufficient information and expertise, acceptance of the decision by others is not critical for implementation, and there is not adequate time for true participation. A leader should use more group-oriented and participative decision methods when the followers have the information and expertise that the leader lacks, acceptance of the decision by others is critical for implementation, and adequate time is available for true participation. Using the participative decision method helps to improve decision quality and decision acceptance and assists in developing leadership potential in other people. However, it takes more time.
304.
Explain emotional intelligence and its components. How would you evaluate your personal competency with respect to the components of emotional intelligence? How might a person’s level of emotional intelligence influence his/her effectiveness as a leader? Suggested Answer: Emotional intelligence (EI) is both the ability to understand emotions in one’s self and others and the ability to use that understanding to guide behaviour. There are five components of emotional intelligence in which people should strive to develop competency. The students should evaluate themselves against these components, which are: • • • • •
Self-awareness –– the ability to understand one’s own moods, emotions, and drives, and how they affect others. Self-regulation –– the ability to think before acting and to control disruptive impulses or moods. Motivation –– the ability to work for more than money or status, and to work with perseverance and high energy. Empathy –– the ability to understand the emotions of other people and deal with others according to their emotional states. Social skill –– the ability to manage relationships, build interpersonal networks, and establish social support.
Technical (or knowledge-based) skills and cognitive (or analytical) skills are threshold or baseline capabilities for leadership. Leadership excellence depends on emotional intelligence in addition to these threshold capabilities. Thus, a person’s effectiveness as a leader will be diminished if he/she does not possess sufficient emotional intelligence in addition to technical and cognitive skills.
Chapter 13: Leading 305.
539
Why is moral leadership important? What can people do to improve their capabilities to provide moral leadership? Suggested Answer: An organization without moral leadership is an organization adrift in the tumultuous sea of global competition and rapid change. Moral leadership provides consistent direction regarding decisions and actions that are fair and just for the organization and all of its stakeholders. An important element of moral leadership is integrity ⎯ the leader’s honesty, credibility, and consistency in putting values into action. People can improve their capacity for moral leadership by ensuring that their actions and personal examples set high ethical standards for others to follow. Those in leadership roles should also recognize that they have a moral obligation to supply the necessary spark to awaken the potential of each individual to take the initiative in performing leader-like acts. Finally, moral leaders instill a sense of ownership in followers by being truly respectful of others and helping them to do their best.
Chapter 14:
MOTIVATION ⎯ THEORY AND PRACTICE True/False Questions CHAPTER INTRODUCTION 1.
Two of the practical managerial questions regarding work motivation are: Why do some people work enthusiastically? Why do some people do only the minimum needed to avoid reprimand or termination? T GT Ap
2.
Two of the practical managerial questions regarding work motivation are: How can a team leader or manager build a high-performance work setting? What can be done to ensure that everyone achieves the highest possible performance during every workday? T GT Ap
WHAT IS MOTIVATION? (STUDY QUESTION 1) 3.
Motivation refers to forces within the individual that account for the level, direction, and persistence of effort expended at work. T KT Fa
4.
Understanding motivation and applying motivational concepts are incidental to exercising effective leadership in inspiring people to work hard. F GT Ap
5.
A highly motivated person works hard at a job and an unmotivated person does not work hard at a job. T GT Ap
6.
A highly motivated workforce is essential for organizations to consistently achieve highperformance outcomes. T GT Ap
7.
A manager who leads through motivation creates conditions under which other people are consistently inspired to work hard. T GT Ap
Motivation and Rewards
541
542
Schermerhorn & Wright: Management
8.
A need is a work outcome of positive value to an individual. F GT Fa
9.
A reward is a work outcome of positive value to an individual. T GT Fa
10.
Intrinsic rewards are externally administered; they are valued outcomes given to someone by another person, typically a supervisor or higher-level manager F KT Fa
11.
Examples of extrinsic rewards include pay bonuses, promotions, time off, special assignments, office fixtures, awards, and verbal praise. T GT Fa
12.
Intrinsic rewards are self-administered and they occur “naturally” as a person performs a task. T KT Fa
13.
Examples of intrinsic rewards include feelings of competency, personal development, and selfcontrol. T GT Fa
Rewards and Performance 14.
Performance-contingent rewards refer to linking rewards directly to performance. T GT Fa
15.
To take full advantage of the possibilities for creatively linking rewards and performance, managers must respect diversity and individual differences in order to understand what people want from work. T GT Fa
16.
To take full advantage of the possibilities for creatively linking rewards and performance, managers must allocate rewards to satisfy the interests of both individuals and the organization. T GT Fa
17.
To take full advantage of the possibilities for creatively linking rewards and performance, managers must minimize the costs of rewards used at lower organizational levels in order to create substantial reserves to reward upper management. F GT Fa
18.
Content theories help managers to understand human needs and how people with different needs may respond to different work situations. T GT Fa
19.
Process theories help managers to understand how people give meaning to rewards and then respond with various work-related behaviours. T GT Fa
Chapter 14: Motivation⎯ Theory and Practice 20.
543
Reinforcement theory helps managers understand the environment as a major source of rewards and how people’s behaviours are influenced by these environmental consequences. T GT Fa
CONTENT THEORIES OF MOTIVATION (STUDY QUESTION 2) 21.
Needs are the unfulfilled physiological or psychological desires of an individual. T
KT
Fa
22.
Needs have little impact on the behaviours and attitudes of people at work. F GT Fa
23.
Good managers and leaders establish conditions under which people can satisfy important needs at work, and they eliminate obstacles to need satisfaction at work. T GT Fa
24.
The content theories of motivation include the hierarchy of needs theory, ERG theory, two-factor theory, and acquired needs theory. T GT Fa
Hierarchy of Needs Theory 25.
According to Maslow’s hierarchy of needs theory, physiological, safety, and social needs are higher-order needs. F KT Fa
26.
According to Maslow’s hierarchy of needs theory, lower-order needs are desires for physical and social well-being. F KT Fa
27.
Higher-order needs are desires for psychological development and growth, and they include esteem and self-actualization needs. T KT Fa
28.
In Maslow’s hierarchy of needs theory, the deficit principle holds that a satisfied need is not a motivator of behaviour. T GT Fa
29.
Maslow’s reinforcement principle holds that a need at one level does not become activated until the next lower-level need is already satisfied. F GT Fa
30.
The more that self-actualization needs are satisfied, the stronger they are supposed to grow. T GT Fa
31.
A person at the self-actualization level of Maslow’s hierarchy will be satisfied by creative and challenging work, participation in decision making, job flexibility, and job autonomy. T GT Ap
544
Schermerhorn & Wright: Management
32.
A person who likes praise and recognition from his or her supervisor is seeking the satisfaction of the social needs in Maslow’s hierarchy. F GT Ap
33.
A person at the social level of Maslow’s hierarchy will be motivated by participation in decision making. F GT Ap
34.
Safety needs can be fulfilled with job security, base compensation, fringe benefits, and safe working conditions. T GT Ap
35.
Physiological needs can be fulfilled with rest, refreshment breaks, physical comfort on the job, and reasonable work hours. T GT Ap
36.
Self-actualization needs are satisfied entirely with intrinsic rewards. T GT Ap
37.
Esteem needs are satisfied by both intrinsic and extrinsic rewards. T GT Ap
38.
Social needs are satisfied by both intrinsic and extrinsic rewards. F GT Ap
39.
Safety needs and physiological needs are satisfied entirely by extrinsic rewards. T GT Ap
ERG Theory 40.
Alderfer’s ERG theory has three need categories: existence needs, relatedness needs, and growth needs. T GT Fa
41.
ERG theory assumes that any or all types of needs can influence an individual’s behaviour at a given time. T GT Fa
42.
ERG theory assumes that that satisfied needs lose their motivational impact. F GT Fa
43.
Alderfer’s ERG theory assumes that a lower-level need can become reactivated when a higherlevel need cannot be satisfied. T GT Fa
44.
According to ERG theory, existence needs are desires for physiological and material well-being. T GT Fa
45.
According to ERG theory, relatedness needs are desires for satisfying interpersonal relationships. T GT Fa
Chapter 14: Motivation⎯ Theory and Practice
545
46.
According to Alderfer’s ERG theory, growth needs are desires for continued satisfying growth and development. T GT Fa
47.
The contingency principle of ERG theory holds that an already satisfied, lower-level need becomes reactivated and can influence behaviour when a higher-level need cannot be satisfied. F GT Fa
Two-Factor Theory 48.
In the two-factor theory of motivation, a hygiene factor is found in job content, such as a sense of achievement, recognition, responsibility, advancement, or personal growth. F KT Fa
49.
In the two-factor theory of motivation, a satisfier factor is found in job context, such as working conditions, interpersonal relations, organizational policies, and salary. F KT Fa
50.
Herzberg’s two-factor theory indicates that hygiene factors reflect the things that turn people off and refer to the work setting. T GT Fa
51.
Herzberg’s two-factor theory indicates that hygiene factors ⎯ such as working conditions, interpersonal relations, organizational policies, and salary ⎯ prevent job dissatisfaction from occurring. T GT Fa
52.
Herzberg’s two-factor theory indicates that satisfier factors reflect the things that turn people on and contribute to job satisfaction. T GT Fa
53.
According to Herzberg’s two-factor theory, satisfiers refer to the nature of the job itself, and include a sense of achievement, recognition, responsibility, advancement, or personal growth. T GT Fa
54.
According to the two-factor theory of motivation, organizational policies and administration, supervision, working conditions, and base wage or salary are sources of job satisfaction. F GT Fa
55.
According to the two-factor theory of motivation, opportunity for advancement, sense of achievement, sense of responsibility, and feeling of personal growth are sources of job dissatisfaction. F GT Fa
56.
In Herzberg’s two-factor theory, hygiene factors involve job context and affect job dissatisfaction. T GT Fa
546
Schermerhorn & Wright: Management
57.
In the two-factor theory of motivation, satisfier factors involve job content and affect job satisfaction. T GT Fa
58.
From a practical perspective, the two-factor theory suggests that managers should always correct poor job context to eliminate any actual or potential sources of job dissatisfaction, and should build satisfier factors into job content to maximize opportunities for job satisfaction. T GT Fa
Acquired Needs Theory 59.
According to McClelland’s acquired needs theory, the need for power reflects the desire to do something better or more efficiently, to solve problems, or to master complex tasks. F KT Fa
60.
In McClelland’s motivation theory, the need for achievement is the desire to control, influence, or be responsible for other people. F KT Fa
61.
According to acquired needs theory, the need for affiliation is a manifestation of the desire to establish and maintain friendly and warm relations with other people. T KT Fa
62.
High need achievers prefer work that involves individual responsibility for results, involves achievable but challenging goals, and provides feedback on performance. T GT Fa
63.
Although the need for personal power is exploitative and involves manipulation and power for the pure sake of personal gratification, it is absolutely crucial for success in management. F GT Fa
64.
The need for social power involves using power in socially responsible ways and is directed toward group or organizational objectives rather than personal objectives; it is essential to managerial leadership. T GT Fa
65.
People high in the need for power prefer work that involves control over other persons, has an impact on people and events, and brings public recognition and attention. T GT Fa
66.
An extremely high need for affiliation may interfere with a person’s ability to make decisions with which others disagree. T GT Fa
Questions and Answers on the Content Theories 67.
A comparison of the content theories of motivation indicates that higher-order needs include Maslow’s esteem and self-actualization needs, Alderfer’s growth needs, Herzberg’s satisfier factors, and McClelland’s needs for achievement and power. T GT Fa
Chapter 14: Motivation⎯ Theory and Practice
547
68.
A comparison of the content theories of motivation indicates that lower-order needs include Maslow’s physiological, safety, and social needs; Alderfer’s relatedness and existence needs; Herzberg’s hygiene factors; and McClelland’s need for affiliation. T GT Fa
69.
Research has clearly determined a perfect list of individual work-related needs. F GT Fa
70.
Each of the needs identified by Maslow, Alderfer and McClelland can help managers understand the needs of people at work. T GT Fa
71.
Pay can be used to satisfy existence, achievement, and social needs. T GT Fa
72.
The distinction between lower-level and higher-level needs does appear to be useful. T GT Fa
73.
For any given individual, his or her needs will be valued differently at different times and at different ages or career stages. T GT Fa
PROCESS THEORIES OF MOTIVATION (STUDY QUESTION 3) 74.
Process theories of motivation offer advice and insight on how people actually make choices to work hard or not, based on their individual preferences, the available rewards, and possible work outcomes. T GT Fa
75.
Equity theory, expectancy theory, and goal-setting theory are process theories of motivation. T GT Fa
Equity Theory 76.
Perceived inequity occurs whenever a person feels that the rewards received for his/her work efforts are unfair given the rewards others appear to be getting for their work efforts. T GT Ap
77.
Perceived equity occurs whenever a person perceives that his/her personal rewards/inputs ratio is equivalent to the rewards/inputs ratio of a comparison other. T GT Ap
78.
People who feel underpaid will increase their work efforts in order to increase their compensation. F GT Ap
79.
People who feel underpaid experience a sense of guilt and people who feel overpaid experience a sense of anger. F GT Ap
548
Schermerhorn & Wright: Management
80.
According to Stacy Adams, equity theory predicts that when people perceive inequity in their situation as compared to others, they may change work inputs by putting less effort into their jobs, change the rewards received by asking for better treatment, change the comparison points by finding ways to make things appear better, or change the situation by leaving the job. T GT Ap
81.
People who feel underpaid may attempt to restore equity by increasing the quantity of work, increasing the quality of work, taking on more difficult assignments, or working overtime. F GT Ap
82.
Managers can do little to anticipate negative inequities even though equity comparisons are likely whenever rewards such as monetary incentives or pay increases are allocated. F GT Ap
83.
Rewards perceived as equitably administered can foster positive job performance. T GT Ap
84.
Feelings of inequity are determined solely by the individual receiving the rewards, not by the manager. T GT Ap
85.
Managers should carefully communicate an evaluation of the reward being given and the performance on which it is based. T GT Ap
86.
Perceptions of rewards in a social context, not the absolute value of the rewards, determine motivational outcomes. T GT Fa
87.
Managers should ensure that any negative consequences of the equity comparison are avoided, or at least minimized, when rewards are allocated. T GT Fa
88.
Pay is a common source of equity controversies in the workplace and its significance should never be underestimated. T GT Fa
89.
The issue of gender equity is especially relevant to jobs that traditionally have been dominated by men and to jobs that traditionally have been dominated by women. T GT Fa
90.
Skills-based pay focuses on the issue of whether people doing jobs of similar value based on required education, training, and skills should receive similar pay. F GT Fa
Expectancy Theory 91.
Goal-setting theory argues that work motivation is determined by individual beliefs regarding effort-performance relationships and the desirability of possible rewards and other work-related outcomes. F GT Fa
Chapter 14: Motivation⎯ Theory and Practice
549
92.
In Victor Vroom’s expectancy theory of motivation, expectancy refers to the person’s belief that working hard will result in achieving a desired level of task performance. T KT Fa
93.
In the expectancy theory of motivation, the person’s belief that successful performance will be followed by rewards or other potential outcomes is called instrumentality. T KT Fa
94.
In the expectancy theory of motivation, the value the individual assigns to possible rewards and other work-related outcomes is called valence. T KT Fa
95.
The equation “Motivation = expectancy x instrumentality x valence” represents the relationships among the key variables in the expectancy theory of motivation. T GT Fa
96.
The expectancy theory of motivation predicts that a person will be motivated to work hard when expectancy, instrumentality, and valence are all high. T GT Ap
97.
According to expectancy theory, motivation will suffer when expectancy is high and instrumentality and valence are low; or when valence is high and expectancy and instrumentality are low; or when expectancy, instrumentality, and valence are all low. T GT Ap
98.
To make the most of the expectancy theory of motivation, managers should maximize expectancies, instrumentalities, and valences that support the organizational objectives. T GT Fa
99.
To make the most of the expectancy theory of motivation, managers should focus on group needs rather than individual thought processes. F GT Ap
100.
To make the most of the expectancy theory of motivation, managers should try to get all effortperformance-outcome chains to balance. F GT Ap
101.
To make the most of the expectancy theory of motivation, managers should attempt to adjust employees’ valences so that they match the organization’s rewards. F GT Ap
102.
To make the most of the expectancy theory of motivation, managers should establish noncontingent reward systems. F GT Ap
Goal-Setting Theory 103.
The basic premise of goal-setting theory is that supervisors do a better job of setting goals than subordinates do. F GT Fa
550
Schermerhorn & Wright: Management
104.
The basic premise of the goal-setting theory is that task goals can be highly motivating if they are properly set and are well managed. T GT Fa
105.
Task goals provide direction to people in their work, clarify performance expectations, establish a frame of reference for feedback, and provide a foundation for behavioural self-management. T GT Fa
106.
Goal setting can enhance individual work performance by clarifying performance expectations between supervisor and subordinate, among co-workers, and across organizational subunits. T GT Ap
107.
Goal setting can enhance individual work performance by giving direction to people in their work and by providing a foundation for behavioural self-management. T GT Ap
108.
Goal setting can enhance individual work performance by establishing a frame of reference for task feedback. T GT Ap
109.
Participation enhances workers’ understanding of and commitment to goals. T GT Ap
110.
Workers will respond positively to externally imposed goals if the supervisors assigning them are trusted and workers believe they will be adequately supported in their efforts to achieve the goals. T GT Ap
111.
In using goal setting theory, managers should set general goals that are easy to achieve. F MN Fa
112.
In using goal setting theory, managers should separate rewards from goal accomplishment: F MN Fa
REINFORCEMENT THEORY OF MOTIVATION (STUDY QUESTION 4) 113.
Reinforcement theory considers environmental consequences to be the most important factor that influences human behaviour. T GT Fa
114.
Reinforcement theory considers the level of need satisfaction that is associated with a reward to be the most important factor that influences human behaviour F GT Fa
115.
According to the law of effect, behaviour that results in pleasant outcomes is likely to be repeated, and behaviour that results in unpleasant outcomes is not likely to be repeated T KT Fa
Chapter 14: Motivation⎯ Theory and Practice
551
116.
The law of effect states that the effects of an environmental response can be determined by monitoring behaviours. F KT Fa
117.
The law of effect states that people can be motivated to perform both pleasant and unpleasant tasks. F KT Fa
Reinforcement Strategies 118.
Operant conditioning is the process of applying the law of effect to control behaviour by manipulating its consequences. T KT Fa
119.
Operant conditioning is the process of controlling behaviour by manipulating its consequences. T GT Fa
120.
An operant conditioning strategy designed to strengthen or increase the frequency of a behaviour by making a pleasant consequence contingent on the occurrence of the behaviour is called positive reinforcement. T KT Fa
121.
A manager nodding to express approval to a subordinate who is making a useful comment during a staff meeting is an example of positive reinforcement. T GT Ap
122.
An operant conditioning strategy designed to strengthen or increase the frequency of a behaviour by making the avoidance of an unpleasant consequence contingent on the occurrence of the behaviour is called punishment. F KT Fa
123.
A manager who has been nagging a worker every day about tardiness and doesn’t nag when the worker comes to work on time one day is using negative reinforcement. T GT Ap
124.
An operant conditioning strategy designed to eliminate or decrease the frequency of a behaviour by making an unpleasant consequence contingent on the occurrence of the behaviour is called negative reinforcement F KT Fa
125.
A manager who issues a written reprimand to an employee who reports late for work one day is using punishment. T GT Ap
126.
An operant conditioning strategy designed to eliminate or decrease the frequency of a behaviour by making the removal of a pleasant consequence contingent on the occurrence of the behaviour is called extinction. T KT Fa
552 127.
Schermerhorn & Wright: Management A manager who advises someone’s co-workers to ignore that person’s disruptive behaviours during meetings is using negative reinforcement. F GT Ap
Positive Reinforcement 128.
The law of contingent reinforcement advises managers to give rewards only if the desired behaviour is exhibited T GT Fa
129.
The law of contingent reinforcement advises managers to give rewards as soon as possible following the occurrence of a desirable behaviour. F GT Fa
130.
The law of contingent reinforcement advises managers to give rewards in small doses at first and then increase their magnitude when the desirable behaviour is displayed more permanently. F GT Fa
131.
The law of immediate reinforcement states that the more immediate the delivery of a reward after the occurrence of a desirable behaviour, the greater the reinforcing value of the reward. T GT Fa
132.
The law of immediate reinforcement advises managers to use both punishment and positive reinforcement to gain maximum impact on behaviour. F GT Fa
133.
To use positive reinforcement effectively, managers should recognize individual differences in allocating rewards and inform everyone what must be done to get rewards. T MN Ap
134.
To use positive reinforcement effectively, managers should follow the laws of contingent and immediate reinforcement and clearly identify desirable work behaviours. T MN Ap
135.
The creation of a new behaviour by the positive reinforcement of successive approximations to the desired behaviour is called progression. F KT Fa
136.
Continuous reinforcement administers a reward each time a desired behaviour occurs. T GT Fa
137
Contingent reinforcement rewards behaviour only periodically. F GT Fa
138.
Intermittent reinforcement rewards behaviour only periodically. T GT Fa
139.
Intermittent reinforcement will elicit a desired behaviour more quickly than will continuous reinforcement. F GT Ap
Chapter 14: Motivation⎯ Theory and Practice
553
140.
Behaviour acquired under an intermittent schedule will be more permanent than behaviour acquired under a continuous schedule. T GT Ap
141.
One way to succeed with shaping is to give reinforcement on a continuous basis until the desired behaviour is developed, and then use an intermittent schedule to maintain the behaviour at its new level. T GT Ap
Punishment 142.
To use punishment effectively, managers should tell the individual what is being done wrong but not what is being done right. F MN Ap
143.
To use punishment effectively, managers should punish openly and in public. F MN Ap
144. To use punishment effectively, managers should make sure the punishment matches the behaviour. T MN Ap 145.
A manager can punish an employee by denying the person a valued reward, such as verbal praise or pay. T GT Ap
146.
A manager can punish an employee by administering an unpleasant outcome, such as a verbal reprimand, pay reduction, or demotion. T GT Ap
Ethical Issues in Reinforcement 147.
The power of reinforcement techniques in the workplace is dramatically illustrated by a number of success stories regarding improved safety, decreased absenteeism, decreased tardiness, and increased productivity. T GT Fa
148.
Ignoring the individuality of people, restricting people’s freedom of choice, and ignoring the fact that people can be motivated by factors other than extrinsic rewards are important ethical issues regarding the use of reinforcement techniques. T GT Fa
149.
While advocates of reinforcement techniques agree that reinforcement involves the control of behaviour, they also argue that it is an issue only for workers who lack the motivation to exercise self-management. F GT Fa
150.
While advocates of reinforcement techniques agree that reinforcement involves the control of behaviour, they also argue that effective interpersonal relationships minimize the need for control. F GT Fa
554
Schermerhorn & Wright: Management
151.
Although advocates of reinforcement techniques agree that reinforcement involves the control of behaviour, they also argue that control is part of every manger’s job. T GT Fa
152.
Although advocates of reinforcement techniques agree that reinforcement involves the control of behaviour, they also argue that control only becomes an issue of when negative reinforcement is used. F GT Fa
MOTIVATION AND THE NEW WORKFORCE (STUDY QUESTION 5) Integrated Model of Motivation 153.
An integrative view of motivation can combine the insights from the various content and process theories of motivation. T GT Fa
154.
The integrated model of motivation indicates that motivation leads to effort that, when combined with appropriate individual abilities and organizational support, leads to performance. T GT Fa
155.
The integrated model of motivation indicates that the motivational impact of any rewards received for this performance depends on equity and reinforcement considerations. T GT Fa
156.
The integrated model of motivation indicates that satisfaction with rewards should lead to increased motivation to work hard in the future. T GT Fa
157.
An integrative view of motivation can be used to create a truly motivational compensation system. T GT Fa
Pay for Performance 158.
Paying people for their performance is consistent with the hierarchy of needs, ERG, and twofactor theories. F GT Fa
159.
Paying people for their performance is consistent with the equity, expectancy, and reinforcement theories. T GT Fa
160.
The system of awarding pay increases in proportion to individual performance contributions is a gain-sharing system. F KT Fa
161.
A merit pay plan attempts to recognize and positively reinforce high performers and to remind low performers of their lack of achievement. T GT Fa
Chapter 14: Motivation⎯ Theory and Practice
555
162.
A merit pay system is a logical extension of motivational theories in that it makes sense to reward people in proportion to their work contributions. T GT Ap
163.
A merit pay system must have a solid foundation of agreed-upon and well-defined performance measures. T GT Ap
164.
A merit pay system works effectively even if applied inconsistently across levels of the organization. F GT Ap
165.
Everyone believes in merit pay because it has been demonstrated to work well in many different situations. F GT Fa
166.
Merit pay is praised because the pay of chief executive officers is closely linked to performance. F GT Fa
167.
Critics of merit pay suggest that annual increases for all employees should be an equal percentage of base wage or salary because doing so communicates a universal sense of importance to all employees. T GT Fa
Incentive Compensation Systems 168.
A pay for knowledge program that pays workers according to the number of job-relevant skills they master is called experience-based pay. F KT Fa
169.
Skills-based pay systems are common in self-managing teams where the responsibilities include the training and certification of co-workers in job skills. T GT Fa
170.
Incentive compensation systems that pay employees based on the accomplishment of specific performance targets or for some other extraordinary contribution are called Scanlon plans. F GT Fa
171.
Bonuses provide one-time or lump-sum payments to employees based on the accomplishment of specific performance targets or some other extraordinary contribution T GT Fa
172.
Bonuses allow groups of employees to share in any savings realized through their efforts to reduce costs and increase productivity. F GT Fa
173.
Profit-sharing plans distribute to some or all employees a portion of net profits earned by the organization during a stated performance period. T GT Fa Merit pay plans allow groups of employees to share in any savings realized through their efforts to reduce costs and improve productivity.
174.
556
Schermerhorn & Wright: Management F
KT
Fa
175.
In a gain-sharing pay plan, specific formulas are used to calculate both the performance contributions and the incentive pay. T GT Fa
176.
Profit-sharing plans involve employees in ownership through the purchase of stock in the companies that employ them. F GT Fa
177.
A stock option gives employees the right to buy shares of stock at a future date at a fixed price. T KT Fa
178.
Stock option plans provide employees with an incentive to work hard to raise the firm’s stock price, so that they can purchase it at a discount in the future. T GT Fa
179.
As a form of incentive compensation, stock options pose little risk for either organizations or employees. F GT Ap
180.
When the stock market performs well, stocks options can be a highly motivating form of incentive pay; but when the stock market performs poorly, the motivational value of stock options is largely eliminated. T GT Ap
Multiple Choice Questions CHAPTER INTRODUCTION 181.
Which of the following are practical managerial questions regarding work motivation. A. Why do some people work enthusiastically? B. Why do some people do only the minimum needed to avoid reprimand or termination? C. How can a team leader or manager build a high-performance work setting? D. What can be done to ensure that everyone achieves the highest possible performance every workday? E. All of the above are practical managerial questions regarding work motivation. A GT Ap
Chapter 14: Motivation⎯ Theory and Practice
557
WHAT IS MOTIVATION? (STUDY QUESTION 1) 182.
__________ refer(s) to forces within the individual that account for the level, direction, and persistence of effort expended at work. A. Work desire. B. Motivation. C. Job preferences. D. Job expectations. E. Career aspiration. B KT Fa
183.
Which of the following statements about the implications of motivation is incorrect? A. Understanding motivation and applying motivational concepts are incidental to exercising effective leadership in inspiring people to work hard. B. A highly motivated person works hard at a job. C. An unmotivated person does not work hard at a job. D. A highly motivated workforce is essential for organizations to consistently achieve highperformance outcomes. E. A manager who leads through motivation creates conditions under which other people are consistently inspired to work hard. A GT Ap
Motivation and Rewards 184.
A(n) __________ is a work outcome of positive value to an individual. A. Job. B. Career. C. Reward. D. Attitude. E. Need. C GT Fa
185.
__________ are externally administered; they are valued outcomes given to someone by another person, typically a supervisor or higher-level manager A. Extrinsic rewards. B. Intrinsic rewards. C. Lower-order needs. D. Higher-order needs. E. Valences. A KT Fa
186.
All of the following accurately represent the nature of rewards EXCEPT: A. Extrinsic rewards are externally administered. B. Examples of intrinsic rewards include feelings of competency, personal development, and self-control. C. In general, rewards have relatively little impact on motivation. D. Intrinsic rewards occur naturally during job performance. E. Examples of extrinsic rewards include pay bonuses, promotions, time off, special assignments, office fixtures, awards, and verbal praise. C GT Fa
558 187.
Schermerhorn & Wright: Management __________ are self-administered and they occur “naturally” as a person performs a task. A. Extrinsic rewards. B. Intrinsic rewards. C. Lower-order needs. D. Higher-order needs. E. Valences. B KT Fa
Rewards and Performance 188.
__________ refer(s) to linking rewards directly to performance. A. Performance management. B. Direct motivation. C. Performance-contingent rewards. D. Need-based reward practices. E. Linkage management. C GT Fa
189.
To take full advantage of the possibilities for creatively linking rewards and performance, managers must __________. A. Respect diversity and individual differences in order to understand what people want from work. B. Allocate rewards to satisfy the interests of both individuals and the organization. C. Minimize the costs of rewards used at lower organizational levels in order to create substantial reserves to reward upper management. D. A and B. E. A and C. D GT Fa
190.
Which of the following statements is inaccurate? A. Both intrinsic and extrinsic rewards can help the manager to lead effectively through motivation. B. Trait theories of leadership provide insights into how to accomplish the maximum motivational impact. C. Content theories of motivation help managers to understand human needs and how people with different needs may respond to different work situations. D. Process theories of motivation help managers to understand how people give meaning to rewards and then respond with various work-related behaviours. E. Reinforcement theory helps managers understand the environment as a major source of rewards and how people’s behaviour is influenced by these environmental consequences. B GT Fa
Chapter 14: Motivation⎯ Theory and Practice
559
CONTENT THEORIES OF MOTIVATION (STUDY QUESTION 2) 191.
__________ are the unfulfilled physiological or psychological desires of an individual. A. Rewards. B. Goals. C. Values. D. Expectations. E. Needs. E KT Fa
192.
Which of the following statements does NOT correctly describe something about needs? A. Needs are unfulfilled physiological states of an individual. B. Needs are unfulfilled psychological states of an individual. C. Needs have little impact on the behaviours and attitudes of people at work. D. Good managers and leaders establish conditions in which people can satisfy important needs at work. E. Good managers and leaders eliminate obstacles to need satisfaction at work. C GT Fa
193.
The content theories of motivation include all of the following EXCEPT: A. Hierarchy of needs theory. B. ERG theory. C. Two-factor theory. D. Goal-setting theory. E. Acquired needs theory. D GT Fa
Hierarchy of Needs Theory 194.
Physiological, safety, and social needs are __________, according to Maslow’s hierarchy of needs theory. A. Survival order needs. B. Lower-order needs. C. Higher-order needs. D. Superior needs. E. Inferior needs. B KT Fa
195.
__________ are desires for physical and social well-being. A. Lower-order needs. B. Intrinsic rewards. C. Higher-order needs. D. A and C. E. B and C. A KT Fa
560
Schermerhorn & Wright: Management
196.
Higher-order needs include __________ needs. A. Esteem and social. B. Respect and safety. C. Social and self-actualization. D. Recognition and social. E. Esteem and self-actualization. E KT Fa
197.
__________ are desires for psychological development and growth. A. Lower-order needs. B. Extrinsic rewards. C. Higher-order needs. D. A and B. E. A and C. C KT Fa
198.
In Maslow’s hierarchy of needs theory, the__________ principle holds that a satisfied need is not a motivator of behaviour. A. Process. B. Progression. C. Deficit. D. Hygiene. E. Expectancy C GT Fa
199.
Maslow’s __________ holds that a need at one level does not become activated until the next lower-level need is already satisfied. A. Reinforcement principle. B. Satisfier principle. C. Deficit principle. D. Progression principle. E. Hierarchy principle. D GT Fa
200.
The more that __________ needs are satisfied, the stronger they are supposed to grow. A. Physiological. B. Safety. C. Social. D. Esteem. E. Self-actualization. E GT Fa
201.
A person at the self-actualization level of Maslow’s hierarchy will be satisfied by all of the following outcomes EXCEPT A. Creative and challenging work. B. Participation in decision making. C. Job flexibility. D. Friendly co-workers. E. Job autonomy. D GT Ap
Chapter 14: Motivation⎯ Theory and Practice
561
202.
A person who likes praise and recognition from his or her supervisor is seeking the satisfaction of the __________ needs in Maslow’s hierarchy. A. Physiological. B. Esteem. C. Self-actualization. D. Safety. E. Social. B GT Ap
203.
A person at the social level of Maslow’s hierarchy will be motivated by __________. A. A compatible supervisor. B. Merit pay increases. C. Participation in decision making. D. Job security. E. Good fringe benefits. A GT Ap
204.
Safety needs can be fulfilled with all of the following outcomes EXCEPT: A. Job security. B. Base compensation. C. Benefits. D. Praise and recognition. E. Safe working conditions. D GT Ap
205.
Physiological needs can be fulfilled with all of the following outcomes EXCEPT: A. Rest. B. Refreshment breaks. C. Safe working conditions D. Physical comfort on the job. E. Reasonable work hours. C GT Ap
206.
Which of the following is an incorrect description of need satisfaction in Maslow’s hierarchy? A. Self-actualization needs are satisfied entirely with intrinsic rewards. B. Esteem needs are satisfied by both intrinsic and extrinsic rewards. C. Social needs are satisfied by both intrinsic and extrinsic rewards. D. Safety needs are satisfied entirely by extrinsic rewards. E. Physiological needs are satisfied entirely by extrinsic rewards. C GT Ap
562
Schermerhorn & Wright: Management
ERG Theory 207.
Which of the following statements about ERG theory is NOT correct? A. ERG theory has three need categories. B. ERG theory focuses on existence needs, relatedness needs, and growth needs. C. ERG theory assumes that any or all types of needs can influence an individual’s behaviour at a given time. D. ERG assumes that that satisfied needs lose their motivational impact. E. ERG theory assumes that a lower-level need can become reactivated when a higher-level need cannot be satisfied. D GT Fa
208.
The needs contained in Alderfer’s ERG theory of motivation include __________. A. Desires for physiological and material well-being. B. Desires for satisfying interpersonal relationships. C. Desires for continued psychological growth and development. D. All of the above. E. None of the above. D GT Fa
209.
According to ERG theory, __________ are desires for physiological and material well-being. A. Existence needs. B. Esteem needs. C. Relatedness needs. D. Growth needs. E. Developmental needs. A GT Fa
210.
According to ERG theory, __________ are desires for satisfying interpersonal relationships. A. Existence needs. B. Esteem needs. C. Relatedness needs. D. Growth needs. E. Developmental needs. C GT Fa
211.
According to ERG theory, __________ are desires for continued satisfying growth and development. A. Existence needs. B. Esteem needs. C. Escalation needs. D. Relatedness needs. E. Growth needs. E GT Fa
Chapter 14: Motivation⎯ Theory and Practice 212.
563
The __________ of ERG theory holds that an already satisfied, lower-level need becomes reactivated and can influence behaviour when a higher-level need cannot be satisfied. A. Frustration-regression principle. B. Deficit principle. C. Progression principle. D. Law of effect. E. Contingency principle. A GT Fa
Two-Factor Theory 213.
In the two-factor theory of motivation, a __________ is found in job content, such as a sense of achievement, recognition, responsibility, advancement, or personal growth. A. Growth factor. B. Satisfier factor. C. Hygiene factor. D. Achievement factor. E. Relatedness factor. B KT Fa
214.
In the two-factor theory of motivation, a __________ is found in job context, such as working conditions, interpersonal relations, organizational policies, and salary. A. Existence factor. B. Satisfier factor. C. Hygiene factor. D. Affiliation factor. E. Relatedness factor. C KT Fa
215.
All the following statements accurately describe Herzberg’s hygiene factors EXCEPT: A. Hygienes reflect the things that turn people off. B. Hygienes refer to the work setting. C. Hygienes prevent job dissatisfaction from occurring. D. Hygienes contribute to job satisfaction. E. Hygienes include working conditions, interpersonal relations, organizational policies, and salary. D GT Fa
216.
Which of the following items does NOT accurately describe satisfier factors in the two-factor theory? A. Satisfiers reflect the things that turn people on. B. Satisfiers refer to the nature of the job itself. C. Satisfiers prevent job dissatisfaction from occurring. D. Satisfiers contribute to job satisfaction. E. Satisfiers include a sense of achievement, recognition, responsibility, advancement, or personal growth. C GT Fa
564
Schermerhorn & Wright: Management
217.
According to the two-factor theory of motivation, all of the following are sources of job dissatisfaction EXCEPT: A. Work itself. B. Organizational policies and administration. C. Supervision. D. Working conditions. E. Base wage or salary. A GT Fa
218.
According to the two-factor theory of motivation, all of the following are sources of job satisfaction EXCEPT: A. Opportunity for advancement. B. Sense of achievement. C. Sense of responsibility. D. Working conditions. E. Feeling of personal growth. D GT Fa
219.
In Herzberg’s two-factor theory, hygiene factors involve __________ and affect __________. A. Job content … job satisfaction. B. Job content … job dissatisfaction. C. Job context … job satisfaction. D. Job context … job dissatisfaction. E. Both job context and content … both job satisfaction and dissatisfaction. D GT Fa
220.
In the two-factor theory of motivation, satisfier factors involve __________ and affect __________. A. Job content … job satisfaction. B. Job content … job dissatisfaction. C. Job context … job satisfaction. D. Job context … job dissatisfaction. E. Both job context and content … both job satisfaction and dissatisfaction. A GT Fa
221.
From a practical perspective, the two-factor theory suggests that managers should __________. A. Pay attention to both context and content. B. Always correct poor job context to eliminate any actual or potential sources of job dissatisfaction. C. Build satisfier factors into job content to maximize opportunities for job satisfaction. D. B and C. E. A, B, and C. E GT Fa
Chapter 14: Motivation⎯ Theory and Practice
565
Acquired Needs Theory 222.
According to McClelland’s acquired needs theory, the need for __________ reflects the desire to do something better or more efficiently, to solve problems, or to master complex tasks. A. Power. B. Affiliation. C. Self-actualization. D. Achievement. E. Growth. D KT Fa
223.
In McClelland’s motivation theory, the need for __________ is the desire to control, influence, or be responsible for other people. A. Growth. B. Self-actualization. C. Achievement. D. Affiliation. E. Power. E KT Fa
224.
According to acquired needs theory, the need for __________ is a manifestation of the desire to establish and maintain friendly and warm relations with other people. A. Affiliation. B. Power. C. Social belonging. D. Esteem. E. Achievement. A KT Fa
225.
High need achievers prefer work that __________. A. Involves individual responsibility for results. B. Involves achievable but challenging goals. C. Provides feedback on performance. D. A and C. E. A, B, and C. E GT Fa
226.
Which of the following descriptions of the need for power is NOT accurate? A. The need for personal power is exploitative and involves manipulation and power for the pure sake of personal gratification. B. The need for personal power is crucial for success in management. C. The need for social power involves using power in socially responsible ways and is directed toward group or organizational objectives rather than personal objectives. D. The need for social power is essential to managerial leadership. E. People high in the need for power prefer work that involves control over other persons, has an impact on people and events, and brings public recognition and attention. B GT Fa
566 227.
Schermerhorn & Wright: Management An extremely high need for __________ may interfere with a person’s ability to make decisions with which others disagree. A. Achievement. B. Personal power. C. Social power. D. Affiliation. E. Security. D GT Fa
Questions and Answers on the Content Theories 228.
Which one of the following descriptions of the content theories of motivation relate to higherorder needs? A. Maslow’s esteem and self-actualization needs are higher-order needs. B. Alderfer’s growth needs are higher-order needs. C. McClelland’s needs for achievement and power are higher-order needs. D. A and B. E. A, B, and C. E GT Fa
229.
Which one of the following descriptions of the content theories of motivation relate to lowerorder needs? A. Maslow’s physiological, safety, and social needs are lower-order needs. B. Herzberg’s satisfier factors are lower-order needs. C. Alderfer’s relatedness and existence needs are lower-order needs. D. A and B. E. A and C. E GT Fa
230.
Which one of the following descriptions of the content theories of motivation relate to lowerorder needs? A. Herzberg’s hygiene factors are lower-order needs. B. McClelland’s need for affiliation is a lower-order need. C. Alderfer’s growth needs are lower-order needs. D. A and B. E. B and C. D GT Fa
231.
Collectively, the hierarchy of needs theory, ERG theory, two-factor theory, and acquired needs theory address several questions about motivation. Which of the following is NOT one of these questions? A. How many different individual needs are there? B. Can a work outcome or reward satisfy more than one need? C. Is there a hierarchy of needs? D. How important are the various needs? E. What needs differentiate managers from those who are not managers? E GT Fa
Chapter 14: Motivation⎯ Theory and Practice 232.
567
Taken together, the content theories of motivation have several managerial implications. Which of the following is NOT one of these managerial implications? A. Research has clearly determined a perfect list of individual work-related needs. B. Each of the needs identified by Maslow, Alderfer and McClelland can help managers understand the needs of people at work. C. Pay can be used to satisfy existence, achievement, and social needs. D. The distinction between lower-level and higher-level needs does appear to be useful. E. For any given individual, his or her needs will be valued differently at different times and at different ages or career stages. A GT Fa
PROCESS THEORIES OF MOTIVATION (STUDY QUESTION 3) 233.
__________ offer advice and insight on how people actually make choices to work hard or not, based on their individual preferences, the available rewards, and possible work outcomes. A. Content theories of motivation. B. Process theories of motivation. C. Decision making theories. D. Behavioural planning theories. E. Leadership theories. B GT Fa
234.
Which of the following lists correctly identifies the process theories of motivation? A. Hierarchy of needs theory and ERG theory. B. Two-factor theory and acquired-needs theory. C. Equity theory, expectancy theory, and goal-setting theory. D. Hierarchy of needs theory, ERG theory, and reinforcement theory. E. Attribution theory and reinforcement theory. C GT Fa
Equity Theory 235.
Which statement about the equity theory of motivation is incorrect? A. It is a content theory of motivation. B. It is best known through the work of J. Stacy Adams. C. Its essence is that perceived inequity is a motivating state. D. It holds that people try to resolve the inequities they perceive they are experiencing. E. It holds that people who feel underpaid will reduce their work efforts to compensate for missing rewards. A GT Fa
568
Schermerhorn & Wright: Management
236.
Kathy notices that most of her coworkers take extended lunch breaks. Kathy doesn’t do this, but feels she is therefore justified in working a little less hard during the day. Kathy’s decision to work “less hard” is best explained by the __________ theory of motivation. A. Expectancy. B. Equity. C. Two-factor. D. Goal-setting. E. Acquired needs. B GT Ap
237.
According to the equity model of motivation, which of the following is incorrect? A. Perceived inequity occurs whenever a person feels that the rewards received for his/her work efforts are unfair given the rewards others appear to be getting for their work efforts. B. Perceived equity occurs whenever a person perceives that his/her personal rewards/inputs ratio is equivalent to the rewards/inputs ratio of a comparison other. C. People who feel underpaid will increase their work efforts in order to increase their compensation. D. People who feel underpaid experience a sense of anger. E. People who feel overpaid experience a sense of guilt. C GT Ap
238.
According to Stacy Adams, equity theory predicts that when people perceive inequity in their situation as compared to others, they may do any of the following EXCEPT: A. Change work inputs by putting less effort into their jobs. B. Change the rewards received by asking for better treatment. C. Change the comparison points by finding ways to make things appear better. D. Change the situation by leaving the job. E. Do nothing. E GT Ap
239.
Which statement most accurately reflects the ways people deal with perceived inequity? A. People ignore felt negative inequities until they become major issues. B. People are concerned only with inequities that are associated with pay. C. People change the comparison points by finding ways to make things seem better. D. People maintain pay secrecy at all costs. E. People do not to talk to each other about their rewards. C GT Ap
240.
People who feel overpaid may attempt to restore equity by doing all of the following EXCEPT: A. Increasing the quantity of work. B. Increasing the quality of work. C. Transferring to another job. D. Taking on more difficult assignments. E. Working overtime. C GT Ap
Chapter 14: Motivation⎯ Theory and Practice
569
241.
Which statement about the equity theory of motivation is inaccurate? A. Equity comparisons are likely whenever rewards such as monetary incentives or pay increases are allocated. B. A manager can do little to anticipate negative inequities. C. Rewards perceived as equitably administered can foster positive job performance. D. Feelings of inequity are determined solely by the individual receiving the rewards, not by the manager. E. Managers should carefully communicate an evaluation of the reward being given and the performance on which it is based, and should suggest appropriate comparison points. B GT Ap
242.
Which of the following are legitimate managerial implications of equity theory? A. Perceptions of rewards in a social context, not the absolute value of the rewards, determine motivational outcomes. B. Managers should ensure that any negative consequences of the equity comparison are avoided, or at least minimized, when rewards are allocated. C. Pay is a common source of equity controversies in the workplace and its significance should never be underestimated. D. Only B and C are legitimate managerial implications of equity theory. E. A, B, and C are legitimate managerial implications of equity theory. E GT Fa
243.
The issue of __________ is especially relevant to jobs that traditionally have been dominated by men and to jobs that traditionally have been dominated by women. A. Comparable worth. B. Goal challenge. C. Gender equity. D. Expectancies. E. Instrumentalities. C GT Fa
244.
__________ focuses on the issue of whether people doing jobs of similar value based on required education, training, and skills should receive similar pay. A. Gender equity. B. Comparable worth. C. Skills-based pay. D. Job equity. E. Job value. B GT Fa
Expectancy Theory 245.
__________ argues that work motivation is determined by individual beliefs regarding effortperformance relationships and the desirability of possible rewards and other work-related outcomes. A. Equity theory. B. Goal-setting theory. C. Process theory. D. Expectancy theory. E. Content theory. D GT Fa
570
Schermerhorn & Wright: Management
246.
In Victor Vroom’s expectancy theory of motivation, __________ refers to the person’s belief that working hard will result in achieving a desired level of task performance. A. Instrumentality. B. Valence. C. Expectancy. D. The multiplier effect. E. Comparable worth. C KT Fa
247.
In the expectancy theory of motivation, the person’s belief that successful performance will be followed by rewards or other potential outcomes is called __________. A. Instrumentality. B. Valence. C. Expectancy. D. The multiplier effect. E. Comparable worth. A KT Fa
248.
In the expectancy theory of motivation, the value the individual assigns to possible rewards and other work-related outcomes is called __________. A. Instrumentality. B. Valence. C. Expectancy. D. The multiplier effect. E. Comparable worth. B KT Fa
249.
Which of the following relationships is correct as a statement of Vroom’s expectancy theory of motivation? A. Motivation = expectancy x instrumentality x valence. B. Motivation = expectancy x equity x rewards. C. Motivation = expectancy + equity + rewards. D. Motivation = expectancy x rewards x valence. E. Motivation = expectancy + rewards + valence. A GT Fa
250.
The expectancy theory of motivation predicts that a person will be motivated to work hard when __________. A. Expectancy is high and instrumentality and valence are low. B. Instrumentality is high and expectancy and valence are low. C. Valence is high and expectancy and instrumentality are low. D. Expectancy, instrumentality, and valence are all high. E. Expectancy or instrumentality or valence equals zero. D GT Ap
Chapter 14: Motivation⎯ Theory and Practice
571
251.
According to expectancy theory, motivation will suffer when __________. A. Expectancy is high and instrumentality and valence are low. B. Valence is high and expectancy and instrumentality are low. C. Expectancy, instrumentality, and valence are all low. D. A and B. E. A, B, and C. E GT Ap
252.
To make the most of the expectancy theory of motivation, managers should __________. A. Focus on group needs rather than individual thought processes. B. Maximize expectancies, instrumentalities, and valences that support the organizational objectives. C. Try to get all effort-performance-outcome chains to balance. D. Attempt to adjust employees’ valences so that they match the organization’s rewards. E. Establish non-contingent reward systems. B GT Ap
Goal-Setting Theory 253.
The basic premise of the goal-setting theory is that __________. A. Supervisors do a better job of setting goals than subordinates do. B. Tasks should be viewed as goals in and of themselves. C. Tasks should be separated from goals. D. Task goals can be highly motivating if they are properly set and are well managed. E. Task goals can be very intimidating and are the cause of low levels of motivation. D GT Fa
254.
__________ provide direction to people in their work, clarify performance expectations, establish a frame of reference for feedback, and provide a foundation for behavioural self-management. A. Expectancies. B. Instrumentalities. C. Task goals. D. Equity comparisons. E. Reinforcers. C GT Fa
255.
Edwin Locke believes that goal setting can enhance individual work performance for all of the following reasons EXCEPT: A. Goals can clarify performance expectations between supervisor and subordinate, among coworkers, and across organizational subunits. B. Goals give direction to people in their work. C. Goals can clarify performance expectations between competing organizations. D. Goals can establish a frame of reference for task feedback. E. Goals provide a foundation for behavioural self-management. C GT Ap
572
Schermerhorn & Wright: Management
256.
__________ is one example of a goal-setting system that promotes participation. A. Expectation formation. B. Management by objectives. C. Operant conditioning. D. Organizational behaviour modification. E. The integrated motivation model. B GT Ap
257.
Which of the following statements about participation in goal setting is/are accurate? A. Participation allows for increased understanding of specific and difficult goals. B. Participation provides for greater acceptance of and commitment to goals. C. Workers will respond positively to externally imposed goals if the supervisors assigning them are trusted and workers believe they will be adequately supported in their efforts to achieve the goals. D. A and B. E. A, B, and C. E GT Ap
258.
All of the following are guidelines for making goal setting work EXCEPT: A. Building goal acceptance and commitment among employees. B. Setting goals that are challenging yet realistically attainable. C. Rewarding people for accomplishing goals. D. Making sure that expectations concerning goal accomplishment are clear. E. Stating goals in general terms. E MN Fa
259.
In using goal setting theory, managers should do all of the following EXCEPT: A. Set specific goals B. Set challenging goals C. Clarify goal priorities D. Provide feedback on goal accomplishment. E. Separate rewards from goal accomplishment: E MN Fa
REINFORCEMENT THEORY OF MOTIVATION (STUDY QUESTION 4) 260.
Which of the following theories does NOT use a cognitive explanation of behaviour? A. Hierarchy of needs. B. Equity. C. Reinforcement. D. ERG. E. Expectancy. C GT Fa
Chapter 14: Motivation⎯ Theory and Practice
573
261.
Reinforcement theory considers __________ to be the most important factor that influences human behaviour. A. Environmental consequences. B. The perceived equity of rewards. C. The level of need satisfaction that is associated with a reward. D. The desire to maximize expectancies. E. Valence of rewards. A GT Fa
262.
A basic premise of reinforcement theory states: behaviour that results in pleasant outcomes is likely to be repeated, and behaviour that results in unpleasant outcomes is not likely to be repeated. This premise is known as the __________. A. Outcome likelihood estimator. B. Law of effect. C. Reinforcement imperative. D. Behavioural results rule. E. Behavioural consequences paradigm. B KT Fa
263.
The law of effect states that __________. A. Every behaviour is the effect of some environmental motivator. B. Every reward has some effect. C. Behaviour that results in pleasant outcomes is likely to be repeated; behaviour that results in unpleasant outcomes is not likely to be repeated. D. The effects of an environmental response can be determined by monitoring behaviours. E. People can be motivated to perform both pleasant and unpleasant tasks. C KT Fa
Reinforcement Strategies 264.
__________ is the process of applying the law of effect to control behaviour by manipulating its consequences. A. Equity exchange. B. Expectancy development. C. Outcome management. D. Operant conditioning. E. Outcome conditioning. E KT Fa
265.
Operant conditioning __________. A. Is the process of controlling behaviour by manipulating its consequences. B. Has been popularized by psychologist B.F. Skinner. C. Refers to learning that occurs via the law of effect. D. All of the above. E. None of the above. D GT Fa
574
Schermerhorn & Wright: Management
266.
An operant conditioning strategy designed to strengthen or increase the frequency of a behaviour by making a pleasant consequence contingent on the occurrence of the behaviour is called __________. A. Equity exchange. B. Expectancy development. C. Progression. D. Executive conditioning. E. Positive reinforcement. E KT Fa
267.
A manager nodding to express approval to a subordinate who is making a useful comment during a staff meeting is an example of __________. A. Equity exchange. B. Expectancy development. C. Positive reinforcement. D. Progression. E. Executive conditioning. C GT Ap
268.
An operant conditioning strategy designed to strengthen or increase the frequency of a behaviour by making the avoidance of an unpleasant consequence contingent on the occurrence of the behaviour is called __________. A. Punishment. B. Negative reinforcement. C. Extinction. D. Punishment. E. Deficit conditioning. B KT Fa
269.
A manager who has been nagging a worker every day about tardiness and doesn’t nag when the worker comes to work on time one day is using __________. A. Negative reinforcement. B. Expectancy conditioning. C. Extinction. D. Punishment. E. Deficit conditioning. A GT Ap
270.
An operant conditioning strategy designed to eliminate or decrease the frequency of a behaviour by making an unpleasant consequence contingent on the occurrence of the behaviour is called __________. A. Frustration-regression. B. Negative reinforcement. C. Extinction. D. Punishment. E. Deficit conditioning D KT Fa
Chapter 14: Motivation⎯ Theory and Practice
575
271.
A manager who issues a written reprimand to an employee who reports late for work one day is using __________. A. Frustration-regression. B. Negative reinforcement. C. Extinction. D. Deficit conditioning. E. Punishment. E GT Ap
272.
An operant conditioning strategy designed to eliminate or decrease the frequency of a behaviour by making the removal of a pleasant consequence contingent on the occurrence of the behaviour is called __________. A. Frustration-regression. B. Negative reinforcement. C. Extinction. D. Punishment. E. Deficit conditioning. C KT Fa
273.
A manager who advises someone’s co-workers to ignore that person’s disruptive behaviours during meetings is using __________. A. Positive reinforcement. B. Negative reinforcement. C. Punishment D. Extinction E. Shaping D GT Ap
Positive Reinforcement 274.
The law of contingent reinforcement advises managers to __________. A. Give rewards as soon as possible following the occurrence of a desirable behaviour. B. Focus on verbal praise and recognition as opposed to money when giving rewards. C. Give rewards only if the desired behaviour is exhibited. D. Give rewards in small doses at first and then increase their magnitude when the desirable behaviour is displayed more permanently. E. Use both punishment and positive reinforcement to gain maximum impact on behaviour. C GT Fa
275.
The __________ states that the more immediate the delivery of a reward after the occurrence of a desirable behaviour, the greater the reinforcing value of the reward. A. Law of contingent reinforcement. B. Law of effect. C. Principle of selective reinforcement. D. Law of immediate reinforcement. E. Principle of expectancy. D GT Fa
576
Schermerhorn & Wright: Management
276.
Guidelines for using positive reinforcement include all of the following EXCEPT: A. Maintain a narrow inventory of rewards. B. Recognize individual differences in allocating rewards. C. Inform everyone what must be done to get rewards. D. Follow the laws of contingent and immediate reinforcement. E. Clearly identify desirable work behaviours. A MN Ap
277.
The creation of a new behaviour by the positive reinforcement of successive approximations to the desired behaviour is called __________. A. Operant conditioning. B. Expectancy development. C. Classical conditioning. D. Progression. E. Shaping. E KT Fa
278.
__________ reinforcement administers a reward each time a desired behaviour occurs. A. Selective. B. Continuous. C. Intermittent. D. Contingent. E. Immediate. B GT Fa
279.
__________ reinforcement rewards behaviour only periodically. A. Selective. B. Continuous. C. Intermittent. D. Contingent. E. Immediate. C GT Fa
280.
__________ will elicit a desired behaviour more quickly than will intermittent reinforcement. A. Continuous reinforcement. B. Positive reinforcement. C. Negative reinforcement. D. Extinction. E. Punishment. A GT Ap
281.
Behaviour acquired under __________ schedule will be more permanent than behaviour acquired under a continuous schedule. A. A work. B. A payroll. C. An intermittent. D. A symmetric. E. An asymmetric. C GT Ap
Chapter 14: Motivation⎯ Theory and Practice 282.
577
One way to succeed with __________ is to give reinforcement on a continuous basis until the desired behaviour is developed, and then use a intermittent schedule to maintain the behaviour at its new level. A. Forming. B. Expectancy development. C. Classical conditioning. D. Progression. E. Shaping. C GT Ap
Punishment 283.
All of the following are guidelines for the effective use of punishment EXCEPT: A. Tell the individual what is being done wrong. B. Tell the individual what is being done right. C. Punish openly and in public. D. Follow the laws of contingent and immediate reinforcement. E. Make sure the punishment matches the behaviour. C MN Ap
284.
A manager can __________ an employee by denying the person a valued reward, such as verbal praise or pay. A. Encourage. B. Punish. C. Reward. D. Reinforce. E. Satisfy. B GT Ap
285.
A manager can __________ an employee by administering an unpleasant outcome, such as a verbal reprimand, pay reduction, or demotion. A. Encourage. B. Satisfy. C. Punish. D. Reward. E. Reinforce. C GT Ap
Ethical Issues in Reinforcement 286.
The power of reinforcement techniques in the workplace is dramatically illustrated by a number of success stories regarding all of the following EXCEPT: A. Improved safety. B. Decreased absenteeism C. Decreased tardiness D. Decreased communication problems. E. Increased productivity. D GT Fa
578
Schermerhorn & Wright: Management
287.
Ethical issues regarding the use of reinforcement techniques include which of the following? A. Ignoring the individuality of people. B. Restricting people’s freedom of choice. C. Ignoring the fact that people can be motivated by factors other than extrinsic rewards. D. Only alternatives A and C are ethical issues involving reinforcement techniques. E. Alternatives A, B, and C are ethical issues involving reinforcement techniques. E GT Fa
288.
Advocates of reinforcement techniques agree that reinforcement involves the control of behaviour, but they argue that __________. A. Effective interpersonal relationships minimize the need for control. B. Control is part of every manger’s job. C. Control will be mitigated as long as the reinforcement is positive. D. Control only becomes an issue of when negative reinforcement is used. E. Control of behaviour is an issue only for workers who lack the motivation to exercise selfmanagement. B GT Fa
MOTIVATION AND THE NEW WORKFORCE (STUDY QUESTION 5) Integrated Model of Motivation 289.
The integrated model of motivation has several implications for motivational dynamics in the workplace. Which of the following is/are included among these motivational dynamics? A. Motivation leads to effort that, when combined with appropriate individual abilities and organizational support, leads to performance. B. The motivational impact of any rewards received for this performance depends on equity and reinforcement considerations. C. Ultimately, satisfaction with rewards should lead to increased motivation to work hard in the future.
D. A and C above. E. A, B, and C above. E 290.
GT
Fa
Which of the following is NOT correct regarding an integrative view of motivation? A. An integrative view of motivation can combine the insights from the various content and process theories of motivation. B. An integrative view of motivation focuses on work effort but not on individual abilities or organizational support. C. An integrative view of motivation recognizes that the motivational impact of any rewards received for performance depends on equity and reinforcement considerations. D. An integrative view of motivation can be used to create a truly motivational compensation system. E. An integrative view of motivation recognizes that satisfaction with rewards should lead to increased motivation to work hard in the future. B GT Fa
Chapter 14: Motivation⎯ Theory and Practice
579
Pay for Performance 291.
Paying people for their performance is consistent with which of the following motivation theories?
A. Hierarchy of needs, ERG, and two-factor theories. B. Hierarchy of needs, ERG, and acquired-needs theories. C. ERG, acquired-needs, and equity theories. D. ERG, equity, and expectancy theories. E. Equity, expectancy, and reinforcement theories. E GT Fa 292.
The system of awarding pay increases in proportion to individual performance contributions is a __________. A. Gain-sharing system. B. Merit pay system. C. Scanlon system. D. Profit-sharing system. E. Skills-based pay system. B KT Fa
293.
__________ attempts to recognize and positively reinforce high performers and to remind low performers of their lack of achievement. A. A bonus plan. B. A profit-sharing sharing. C. A gain-sharing plan. D. A stock option. E. A merit pay plan. E GT Fa
294.
A merit pay system __________. A. Is a logical extension of motivational theories in that it makes sense to reward people in proportion to their work contributions. B. Must have a solid foundation of agreed-upon and well-defined performance measures. C. Must be consistently applied at all levels of the organization. D. All of the above. E. None of the above. D GT Ap
295.
Which of the following statements does NOT accurately describe merit pay? A. Merit pay serves to motivate employees by providing performance contingent reinforcements. B. Merit pay is unlikely to succeed when any weakness exists in the performance appraisal system. C. Merit pay is unlikely to succeed when there is inconsistency in applying it at all levels of the organization. D. Everyone believes in merit pay because it has been demonstrated to work well in many different situations. E. Merit pay is criticized because the pay of chief executive officers is not adequately linked to performance. D GT Fa
580 296.
Schermerhorn & Wright: Management Critics of __________ suggest that annual increases for all employees should be an equal percentage of base wage or salary because doing so communicates a universal sense of importance to all employees. A. Gain-sharing. B. Bonus pay. C. Entrepreneurial pay. D. Profit-sharing. E. Merit pay. E GT Fa
Incentive Compensation Systems 297.
A pay for knowledge program that pays workers according to the number of job-relevant skills they master is called __________. A. Bonus pay. B. Skills-based pay. C. Experience-based pay. D. Knowledge-based pay. E. Specialty-based pay. B KT Fa
298.
__________ systems are common in self-managing teams where the responsibilities include the training and certification of co-workers in job skills. A. Bonus pay. B. Experience-based pay. C. Skills-based pay. D. Knowledge-based pay. E. Specialty-based pay. C GT Fa
299.
Incentive compensation systems that pay employees based on the accomplishment of specific performance targets or for some other extraordinary contribution are called __________. A. Scanlon plans. B. Profit-sharing plans. C. Bonus pay plans. D. Entrepreneurial plans. E. Fair play plans. C GT Fa
300.
Nancy received $2,000 for substantially exceeding her quarterly performance goals. Nancy received incentive compensation under which type of plan? A. Bonus pay plan. B. Stock ownership plan. C. Skills-based pay plan. D. Knowledge-based pay plan. E. Specialty-based pay plan. A GT Ap
Chapter 14: Motivation⎯ Theory and Practice
581
301.
Which of the following statements about bonuses is NOT accurate? A. Bonuses provide one-time or lump-sum payments to employees based on the accomplishment of specific performance targets or some other extraordinary contribution B. In the past, bonuses have been common at the executive level. C. Bonuses allow groups of employees to share in any savings realized through their efforts to reduce costs and increase productivity. D. Currently, bonuses are being used more widely throughout the organization. E. Bonuses do not increase the base wage or salary. C GT Fa
302.
__________ plans distribute to some or all employees a portion of net profits earned by the organization during a stated performance period. A. Gain-sharing. B. Bonus pay. C. Entrepreneurial pay. D. Profit-sharing. E. Merit pay. D GT Fa
303.
Barbara works in a company that pays all the employees a portion of net profits earned at the end of each quarter. Barbara’s company offers its employees which type of incentive compensation? A. Gain-sharing. B. Bonus pay. C. Entrepreneurial pay. D. Profit-sharing. E. Merit pay. D KT Ap
304.
__________ pay plans allow groups of employees to share in any savings realized through their efforts to reduce costs and improve productivity. A. Bonus. B. Gain-sharing. C. Profit-sharing. D. Skills-based. E. Merit. B KT Fa
305.
In a __________ pay plan, specific formulas are used to calculate both the performance contributions and the incentive pay. A. Bonus. B. Profit-sharing. C. Skills-based. D. Merit. E. Gain-sharing. E GT Fa
582
Schermerhorn & Wright: Management
306.
__________ plans involve employees in ownership through the purchase of stock in the companies that employ them. A. Bonus. B. Profit-sharing. C. Employee stock ownership. D. Gain-sharing. E. Merit. C GT Fa
307.
__________ gives employees the right to buy shares of stock at a future date at a fixed price. A. A bonus plan. B. A profit-sharing sharing. C. A gain-sharing plan. D. A stock option. E. A merit pay plan. D KT Fa
308.
Which of the following descriptions of employee stock ownership plans is/are correct? A. Some firms provide employees with stock options, which give the option holder the right to buy shares of stock at a future date at a fixed price. B. Stock option plans provide employees with an incentive to work hard to raise the firm’s stock price, so that they can purchase it at a discount in the future. C. While stock options are most common in senior executive compensation packages, its use is spreading to include lower-level employees. D. A and B. E. A, B, and C. E GT Fa
309.
Which of the following descriptions of the implications of stock options is/are accurate? A. Stock options are a risky form of incentive compensation for both organizations and employees. B. When the stock market performs well, stocks options can be a highly motivating form of incentive pay. C. When the stock market performs poorly, the motivational value of stock options is largely eliminated. D. B and C. E. A, B, and C. E GT Ap
Essay Questions 310.
Describe the basic features of Maslow’s hierarchy of needs theory, Alderfer’s ERG theory, Herzberg’s two-factor theory, and McClelland’s acquired needs theory? What guidance does each theory provide to managers?
Chapter 14: Motivation⎯ Theory and Practice
583
Suggested Answer: Maslow’s hierarchy of needs theory specifies five levels of human needs that are arranged in a hierarchy of importance. In the hierarchy, lower-order needs include physiological, safety, and social concerns, whereas higher-order needs include esteem and self-actualization concerns. Additional features of the need hierarchy are the deficit principle and the progression principle. The deficit principle holds that a satisfied need is not a motivator of behaviour; people act to satisfy needs for which a deficit exists. The progression principle holds that a need at one level doesn’t become activated until the next lower-level need is satisfied. People are expected to advance step by step up the hierarchy. Within this framework, self-actualization needs become stronger when they are satisfied. Therefore, a person should continue to be motivated by opportunities for self-fulfillment as long as the other need levels remain satisfied. Alderfer’s ERG theory is an extension of Maslow’s theory. Instead of five need levels, Alderfer proposed three need levels, the first letters of which are identified by the name of the theory itself –– ERG. Existence needs are desires for physiological and material well being. Relatedness needs are desires for satisfying interpersonal relationships. Growth needs are desires for continued psychological growth and development. ERG theory does not assume that lowerlevel needs must be satisfied before higher-level needs become activated. ERG theory includes a unique frustration-regression principle whereby an already satisfied lower-level need becomes reactivated when a higher-level need is frustrated. Mangers should help to remove blocks to need satisfaction. Two-factor theory argues that different factors are sources of job dissatisfaction and job satisfaction. The job dissatisfaction factors are called hygiene factors and the job satisfaction factors are labeled satisfier factors. Hygiene factors are elements of the job context, including the following: working conditions, interpersonal relations, organizational policies and administration, technical quality of supervision, and base compensation. Improvements in hygiene factors can prevent and/or eliminate job dissatisfaction; they will not improve job satisfaction. Satisfier factors are elements of the job content that include the following: sense of achievement, feelings of recognition, sense of responsibility, advancement opportunities, and feelings of personal growth. Improvements in satisfier factors increase job satisfaction; they will not prevent job dissatisfaction. According to two-factor theory, managers should: (a) recognize that all jobs have two important aspects ⎯ what people do in terms of job tasks (i.e., job content) and the setting in which they do it (i.e., job context); (b) always correct poor context to eliminate actual or potential sources of job dissatisfaction; and (c) be sure to build satisfier factors into job content to maximize opportunities for job satisfaction. Acquired needs theory proposes that people acquire or develop needs through their life experiences. These needs relate to achievement, power, and affiliation. The need for achievement is the desire to do something better or more efficiently, to solve problems, or to master complex tasks. The need for power is the desire to control other persons, to influence their behaviour, or to be responsible for other people. The need for affiliation is the desire to establish and maintain friendly and warm relations with other persons. Managers should create work environments that are responsive to the varying need strengths of people.
311.
Discuss equity theory and how it relates to managing for motivation. Suggested Answer: Equity theory asserts that when people believe they have been treated unfairly in comparison to others, they try to eliminate the discomfort and restore a perceived sense of equity
584
Schermerhorn & Wright: Management to the situation. Perceived inequity occurs whenever a person feels that the rewards received for his/her work efforts are unfair given the rewards others appear to be getting for their work efforts. Perceived equity occurs whenever a person perceives that his/her personal rewards/inputs ratio is equivalent to the rewards/inputs ratio of a comparison other. In using equity theory to guide managerial efforts to influence work motivation, managers should recognize that people who feel underpaid may experience a sense of anger and people who feel overpaid may experience a sense of guilt. Managers should also understand that perceptions of rewards in a social context, not the absolute value of the rewards, determine motivational outcomes. Finally, managers should ensure that any negative consequences of the equity comparison are avoided, or at least minimized, when rewards are allocated.
312.
Describe the key concepts in the expectancy theory of motivation. How do these concepts explain the level of motivation that a person may display at work? Suggested Answer: According to expectancy theory, work motivation depends on the relationships among the following three factors: • • •
Expectancy (also called the effort-performance expectancy) is a person’s belief that working hard will result in a desired level of task performance being achieved. Instrumentality (also called the performance-outcome expectancy) is a person’s belief that successful task performance will be followed by rewards and other potential outcomes. Valence is the value a person assigns to possible rewards and other work-related outcomes.
The relationship between motivation and the three factors –– expectancy, instrumentality, and valence –– can be expressed as an equation: M=ExIxV where M = motivation, E = expectancy, I = instrumentality, and V = valence. This multiplier effect implies that for motivation to be high, expectancy, instrumentality, and valence must be high, and valence must be positive. Conversely, if expectancy is low (the person feels he or she can’t perform), instrumentality is low (the person is not confident performance will be rewarded), and/or valence is low or negative (the reward is not valued), motivation will be low.
313.
Discuss goal setting theory and how it relates to managing for motivation. Suggested Answer: The basic premise of goal setting theory is that properly set and well-managed task goals can be highly motivating. Task goals provide direction to people in their work, clarify performance expectations, establish a frame of reference for feedback, and provide a foundation for behavioural self-management. The following list identifies the key issues and principles in the goal-setting process:
Chapter 14: Motivation⎯ Theory and Practice • • • • • •
585
Set specific goals: Specific goals lead to higher performance than more generally stated ones, such as “Do your best.” Set challenging goals: When they are viewed as realistic and attainable, more difficult goals lead to higher performance than do easy goals. Build goal acceptance and commitment: People work harder for goals that they accept and believe in; they resist goals forced on them. Clarify goal priorities: Make sure that expectations are clear as to which goals should be accomplished first, and why. Provide feedback on goal accomplishment: Make sure that people know how well they are doing with respect to goal accomplishment. Reward goal accomplishment: Don’t let positive accomplishments go unnoticed; reward people for doing what they set out to do.
Participation is a major factor in unlocking the motivational potential of goal setting. When goals must be assigned, workers will respond more positively if supervisors are trusted and the workers believe they will be adequately supported in their efforts to achieve the goals. 314.
Give a general overview of reinforcement theory, and identify and define the four basic operant conditioning strategies. Suggested Answer: Rather than relying on cognitive explanations of behaviour, reinforcement theory focuses on the impact of external environmental consequences on behaviour. The impact of the external environment is succinctly captured in Thorndike’s law of effect, which states: “Behaviour that results in a pleasant outcome is likely to be repeated; behaviour that results in an unpleasant outcome is not likely to be repeated.” Operant conditioning is the process of applying the law of effect to control behaviour by manipulating its consequences. The operant conditioning strategies and their effects are as follows: • • • •
Positive reinforcement strengthens or increases the frequency of a behaviour through the contingent presentation of a pleasant consequence. Negative reinforcement strengthens or increases the frequency of a behaviour through the contingent removal of an unpleasant consequence. Punishment eliminates or decreases the frequency of a behaviour through the contingent presentation of an unpleasant consequence. Extinction eliminates or decreases the frequency of a behaviour through the contingent removal of a pleasant consequence.
Chapter 15:
INDIVIDUAL BEHAVIOUR AND PERFORMANCE True/False Questions CHAPTER INTRODUCTION 1.
Jeff Pfeffer and Charles O’Reilly believe that too many organizations under-perform because they fail to tap into the talents of their human resources T GT Fa
2.
When the work experience is designed well, people can achieve high performance results and experience a high quality of work life. T GT Ap
UNDERSTANDING PEOPLE AT WORK (STUDY QUESTION 1) 3.
Work can be a “turn-on” or a “turn-off.” T GT Ap
4.
Some people, too many people, work under conditions that fail to provide them with respect and satisfaction. T GT Ap
5.
People at work can both achieve high performance and experience job satisfaction. T GT Ap
6.
People working under conditions that fail to provide them with respect and satisfaction is inevitable if companies are to control costs sufficiently to compete in the global marketplace. F GT Ap
7.
Everyone gains when managers value people and create jobs and work environments that respect people’s needs and potential. T GT Ap
8.
People are the foundations of high performance in the workplace. T GT Ap
587
588
Schermerhorn & Wright: Management
Organizational Behaviour 9.
Organizational behaviour is the study of individuals and groups in organizations. T KT Fa
10.
Organizational behaviour (OB) is an interdisciplinary body of knowledge that uses of scientific methods, focuses on practical applications, and emphasizes contingency thinking. T GT Fa
11.
The person-job fit involves finding a good match of individual interests and capabilities with job characteristics. T GT Fa
Psychological Contracts 12.
A psychological contract is a set of expectations held by an individual about what will be given and received in the employment relationship. T KT Fa
13.
The ideal work situation is one in which the exchange of values in the psychological contract favours the employer. F GT Fa
14.
The ideal work situation is one in which the exchange of values in the psychological contract favours the employee. F GT Fa
15.
When the psychological contract is broken, morale problems easily develop. T GT Fa
16.
The idea of a psychological contract between an individual and an organization suggests that the individual makes contributions in exchange for inducements. T GT Fa
17.
The organization and the individual mutually exchange contributions in the psychological contract, F GT Fa
18.
Contributions, provided by the individual in the psychological contract, include effort, time, creativity, loyalty, and commitment. T GT Fa
19.
In the psychological contract, inducements are offered to the individual by the organization. T GT Fa
20.
Inducements, offered by the organization in the psychological contract are fringe benefits, training, pay, opportunity, security, and respect. T GT Fa
Chapter 15: Individual Behaviour and Performance
589
Work and the Quality of Life 21.
Total quality management describes the overall quality of human experiences in the workplace. F GT Fa
22.
Quality of work life describes the overall quality of human experiences in the workplace. T GT Fa
23.
Work is not an important component of the quality of life. F GT Ap
24.
Jobs are a source of pleasure for some people and a source of sheer drudgery for other people. T GT Ap
25.
For most people, the overall quality of life is unaffected by the quality of work life. F GT Ap
26.
Poor management practices can diminish both the quality of work life and the overall quality of life for employees. T GT Ap
27.
The managerial goal of addressing quality of work life issues involves helping create work environments wherein people have positive experiences while meeting high performance expectations. T GT Ap
28.
A manager’s job entails little responsibility for promoting a high quality of work life. F GT Ap
29.
Good management can enhance an employee’s quality of work life but has little to do with the employee’s overall quality of life. F GT Ap
Personality Traits 30.
Personality refers to the combination or overall profile of characteristics that make one person unique from every other. T KT Fa
31.
Agreeableness is one of the “Big Five” personality traits that reflects the degree to which someone is outgoing, sociable, and assertive. F KT Fa
32.
An introvert is comfortable and confident in interpersonal relationships and an extrovert is more withdrawn and reserved in interpersonal relationships. F GT Fa
33.
Extroversion is one of the “Big Five” personality traits that reflects the degree to which someone is good-natured, cooperative, and trusting. F KT Fa
590
Schermerhorn & Wright: Management
34.
An agreeable person gets along well with others and a disagreeable person is a source of conflict and discomfort for others. T GT Fa
35.
Conscientiousness is one of the “Big Five” personality traits that reflects the degree to which someone is responsible, dependable, and careful. T KT Fa
36.
A conscientious person focuses on what can be accomplished and meets commitments; a person lacking conscientiousness is careless, often trying to do too much and failing, or doing little. T GT Fa
37.
Openness is one of the “Big Five” personality traits that reflects the degree to which someone is relaxed, secure, and unworried. F KT Fa
38.
An emotionally unstable person is calm and confident and an emotionally stable person is anxious, nervous, and tense. F GT Fa
39.
Emotional stability is one of the “Big Five” personality traits that reflects the degree to which someone is curious, open to new ideas, and unworried. F KT Fa
40.
An open person is broad-minded, receptive to new things, and open to change; a person lacking openness is narrow-minded, has few interests, and is resistant to change. T GT Fa
41.
Managers must be able to understand and respond to personality differences when building teams but not when making job assignments and engaging in daily work activities. F GT Ap
42.
Self-monitoring is the extent to which people believe they are in control of their destinies versus believing that that what happens to them is beyond their control. F KT Fa
43.
Individuals with an external locus of control individuals accept responsibility for their own actions, whereas individuals with an internal locus of control blame others and outside forces for what happens to them. T KT Fa
44.
Authoritarianism is a personality characteristic that refers to the degree to which a person defers to authority and accepts status differences. T KT Fa
45.
People with an authoritarian personality are control-oriented in leadership positions and subservient as followers. T GT Fa
46.
Machiavellianism describes the extent to which someone is emotionally detached and manipulative in using power. T KT Fa
Chapter 15: Individual Behaviour and Performance
591
47.
The “low-mach” personality is exploitative and unconcerned about others, whereas the “highmach” personality is deferential in allowing power to be exerted over him/her. F GT Fa
48.
Problem-solving style refers to the ways people gather and evaluate information for decision making. T KT Fa
49.
Information gathering in problem solving is accomplished through sensation (looking for the “big picture” and being willing to deal with various possibilities) or intuition (emphasizing details, facts, and routine). F GT Fa
50.
Information evaluation in problem solving is accomplished through thinking (using reason and analysis) or feeling (responding to the feelings and desires of others). T GT Fa
51.
Sensation-Thinkers (STs) take a realistic approach to problem solving; they prefer “facts,” clear goals, and certainty. T GT Fa
52.
Intuitive-Thinkers (NTs) are insightful, like to deal with broad issues, and value flexibility and human relationships. F GT Fa
53.
Intuitive-Feelers (NFs) are comfortable with abstraction and unstructured solutions, tending to be idealistic and to avoid details. F GT Fa
54.
Sensation-Feelers (SFs) emphasize analysis using facts, while being open communicators and respectful of feelings and values. T GT Fa
55.
Self-monitoring reflects the degree to which someone is able to adjust and modify behaviour in response to the situation and external factors. T KT Fa
56.
A low self-monitor tends to be a learner, comfortable with feedback, and both willing and able to change. F GT Fa
57.
A high self-monitor is predictable, tending to act consistently regardless of circumstances. F GT Fa
WORK ATTITUDES AND BEHAVIOUR (STUDY QUESTION 2) What Is an Attitude? 58.
An attitude is a predisposition to act in a certain way toward people and things in one’s environment. T KT Fa
592
Schermerhorn & Wright: Management
59.
The cognitive component of an attitude reflects a belief or opinion. T GT Fa
60.
The affective component of an attitude reflects a specific feeling. T GT Fa
61.
The behavioural component of an attitude reflects an intention to behave consistently with a specific belief and feeling. T GT Fa
62.
Cognitive dissonance describes the discomfort a person feels when attitudes and behaviour are inconsistent. T KT Fa
63.
Behavioural discontent describes the discomfort a person feels when attitudes and behaviour are inconsistent. F KT Fa
Job Satisfaction 64.
Job satisfaction is the degree to which an individual feels positively or negatively about various aspects of work. T KT Fa
65.
Common aspects of job satisfaction include satisfaction with pay, tasks, the work setting, advancement opportunities, supervision, and coworkers. T GT Fa
66.
Workers who are more satisfied with their jobs are absent less frequently. T GT Fa
67.
Dissatisfied workers are more likely to quit their jobs and satisfied workers are more likely to stay. T GT Fa
68.
Job satisfaction is closely related to job involvement and organizational commitment. T GT Fa
69.
Job involvement and organizational commitment have few, if any, quality of work life implications. F GT Fa
70.
Organizational commitment refers to the extent to which an individual is dedicated to a job. F KT Fa
71.
The psychological contract refers to the loyalty of an individual to the organization. F KT Fa
Chapter 15: Individual Behaviour and Performance 72.
593
The opportunity to do one’s best every day, believing that one’s opinions count, believing that fellow workers are committed to quality, and believing there is a direct connection between one’s work and the company’s mission are attitudes that are positively correlated with higher profits for the company. T GT Fa
Individual Performance 73.
Job performance refers to the quantity and quality of tasks accomplished by an individual or group at work. T KT Fa
74.
Job performance should contribute to the accomplishment of organizational objectives and add value to the organization’s production of useful goods and/or services. T GT Fa
75.
Job performance is the “bottom line” for people at work, and the cornerstone for overall organizational productivity. T GT Fa
76.
Job performance is achieved through individual tradeoffs with job satisfaction. F GT Fa
77.
If high performance is to be achieved in any work setting, the individual contributor must possess the right abilities, work hard at the task, and have the necessary support. T GT Fa
78.
The Individual Performance Equation specifies that Performance = Ability + Support + Effort. F GT Fa
79.
Ability establishes an individual’s capacity to perform at a high level of accomplishment. T GT Fa
80.
Workers need sufficient resources, clear goals and directions, freedom from unnecessary rules and job constraints, appropriate technologies, and performance feedback in order to fully utilize their abilities. T GT Fa
81.
Even the most capable, well-supported workers won’t achieve the highest performance levels unless they are willing to work hard. T GT Fa
JOB DESIGN ALTERNATIVES (STUDY QUESTION 3) 82.
A job is defined as a collection of tasks performed in support of organizational objectives. T KT Fa
83.
Job design is the process of redesigning jobs to “fit” a person’s individual goals. F KT Fa
594
Schermerhorn & Wright: Management
84.
Job design is the process of creating or defining jobs by assigning specific tasks to individuals and groups. T KT Fa
85.
Job design creates a work structure for bureaucratic organizations and identifies key individuals for specific tasks. F KT Fa
86.
Job design uses the insights of motivation theories to attain high levels of both job satisfaction and job performance. T GT Fa
87.
A good job design is one that creates challenging jobs regardless of individual needs. F GT Fa
88.
A good job design is one that provides a good fit between the individual worker and the task requirements. T GT Fa
89.
Job depth refers to the number and variety of tasks contained in a job. F GT Fa
90.
Job scope is the extent to which planning and controlling responsibilities are present in a job. F GT Fa
91.
Task specialization refers to how narrowly a job is defined. T GT Fa
92.
Job simplification involves wide job scope, high job depth, and low task specialization. F GT Fa
93.
Job rotation and job enlargement involve narrow job scope, low job depth, and high task specialization. F GT Fa
94.
Job enrichment involves wide job scope, low job depth, and moderate task specialization. F GT Fa
Scientific Management 95.
The job design approach that involves standardizing work procedures so that people work in welldefined and highly specialized tasks is known as job simplification. T KT Fa
96.
Automation refers to the total mechanization of a job. T KT Fa
Chapter 15: Individual Behaviour and Performance
595
97.
Job simplification has the advantages of workers being easier to train, supervise, and replace since the jobs do not require complex skills. T GT Fa
98.
The potential disadvantages of job simplification tardiness and absenteeism, boredom with tasks, alienation from work, and poor performance. T GT Fa
Job Rotation and Job Enlargement 99.
The job design strategy that increases task variety by periodically shifting workers among jobs involving different task assignments is called job enlargement. F KT Fa
100.
Job rotation can broaden people’s understanding of different jobs and enable workers to experience greater task variety. T GT Fa
101.
Job rotation takes place when task variety is increased by combining into one job, two or more tasks that were previously assigned to separate workers F KT Fa
102.
Vertical loading involves pulling prework and/or later work stages into the job in order to enlarge the job. F GT Fa
103.
The modified assembly-line job, which allows a worker to perform a greater number of tasks and periodically change with other workers, illustrates the job design strategies of job rotation and job enlargement. T GT Ap
Job Enrichment 104.
In promoting job enrichment, Frederick Herzberg says: “If you want people to do a good job, give them a good job to do.” T GT Fa
105.
Job enlargement is the practice of building more opportunities for satisfaction into a job by expanding its content to include work planning and evaluating duties that are normally performed by the supervisor. F KT Fa
106.
Job enrichment differs from other job design alternatives in that it seeks to expand both job depth and job scope. T GT Fa
107.
When a supervisor adds planning and evaluating duties to a worker’s responsibilities, the supervisor has enriched the job by increasing job depth. T GT Fa
596
Schermerhorn & Wright: Management
108.
Changes in a job that are designed to increase job depth are sometimes called horizontal loading. F GT Fa
109.
Enriching jobs through vertical loading can be accomplished by ensuring that people understand their performance accountability and by providing them with performance feedback. T MN Fa
110.
Enriching jobs through vertical loading can be accomplished by allowing people to do complete units of work, removing controls that limit people’s discretion in their work, granting employees authority to make decisions regarding their work, and providing performance feedback. T MN Fa
DIRECTIONS IN JOB ENRICHMENT (STUDY QUESTION 4) 111.
The core characteristics model of job enrichment offers a way for managers to create enriched or unenriched jobs that best fit the needs of people and the organization. T GT FA
Core Characteristics Model 112.
In the core job characteristics model, skill variety refers to the degree to which a job requires a variety of different activities to carry out the work, and involves the use of a number of different skills and talents of the individual. T GT Fa
113.
The degree to which the job requires completion of a “whole” and identifiable piece of work is the core job characteristic of task significance. F GT Fa
114.
In the core characteristics model, task identity refers to the degree to which the job has a substantial impact on the lives or work of other people elsewhere in the organization or in the external environment. F GT Fa
115.
Autonomy is the core job characteristic that reflects the degree to which the job gives the individual freedom, independence, and discretion in scheduling the work and in determining the procedures for carrying it out. T GT Fa
116.
The degree to which the work activities required by a job result in the individual obtaining direct and clear information on his or her performance describes the core characteristic of feedback. T GT Fa
117.
In the core job characteristics model, critical psychological states include experienced meaningfulness of work, experienced responsibility for work outcomes, and knowledge of actual results of work. T GT Fa
Chapter 15: Individual Behaviour and Performance
597
118.
In the core characteristics model of job enrichment, task significance links to experienced responsibility for work outcomes. F GT Fa
119.
In the core characteristics model of job enrichment, skill variety links to experienced meaningfulness of the work. T GT Fa
120.
In the core characteristics model of job enrichment, task identity links to knowledge of actual results of the work. F GT Fa
121.
In the core characteristics model of job enrichment, autonomy links to knowledge of actual results of the work. F GT Fa
122.
In the core characteristics model of job enrichment, feedback links to experienced meaningfulness in the work. F GT Fa
123.
Expected job outcomes in the core characteristics model of job enrichment include high internal work motivation, high work effectiveness, high general job satisfaction, and high growth satisfaction. T GT Fa
124.
The people who are most likely to respond favourably to job enrichment will have strong higherorder needs, be satisfied with the job context, and have sufficient levels of training, education, and intelligence to do enriched jobs. T GT Fa
125.
Growth-need strength refers to the desire to achieve psychological growth in one’s work. T KT Fa
126.
Establishing client relationships, forming natural work units, opening feedback channels, practicing vertical loading, and combining tasks are ways of improving one or more of the core job characteristics T GT Ap
Technology and Job Enrichment 127.
Job designs that use technology to best advantage while still treating people with respect and allowing their human talents to be applied to the fullest potential are called sociotechnical systems. T KT Fa
128.
Robotics refers to the use of computer-controlled machines to completely automate work tasks previously performed manually. T GT Fa
598
Schermerhorn & Wright: Management
129.
Robotics represents the most extreme form of job enrichment. F GT Fa
130.
Robotics offers an opportunity to take over many routine tasks previously assigned to people, thereby freeing human talents for more enriched job assignments. T GT Fa
131.
Robotics demonstrates that technology utilization and job enrichment can be complementary strategies. T GT Fa
Questions and Answers on Job Enrichment 132.
The cost of job enrichment grows as the required changes in technology, workflow, and other facilities become more complex. T GT Fa
133.
If people are being paid truly competitive wages, the satisfaction of performing enriched tasks will be adequate compensation for the increased work involved. T GT Fa
134.
Any manager who employs job enrichment should recognize that pay is likely to be an unimportant issue for the people involved. F GT Fa
135.
Job enrichment is most appropriate for high growth-need strength workers who have the training, education, and ability to perform the enriched job. T GT Fa
136.
All union officials consider wages and benefits to be more important issues than job enrichment. F GT Fa
ALTERNATIVE WORK ARRANGEMENTS (STUDY QUESTION 5) 137.
The changing content and context of jobs and the needs and interests of a diverse workforce are creating pressure for the development of alternative work arrangements in the modern workplace. T GT Fa
138.
Compressed workweeks, flexible working hours, job sharing, telecommuting, and part-time work are forms of alternative work arrangements. T GT Fa
The Compressed Workweek 139.
Any work schedule that allows a full-time job to be completed in less than the standard five days of eight-hour shifts is known as the compressed workweek. T KT Fa
Chapter 15: Individual Behaviour and Performance
599
140.
The most common form of flexible working hours is a “4-40” schedule –– that is, 40 hours of work accomplished in four 10-hour days. F GT Ap
141.
The benefits of the compressed workweek for the individual include more leisure time and lower commuting costs. T GT Fa
142.
Potential disadvantages of the compressed workweek for individuals include increased fatigue and family adjustment problems. T GT Fa
143.
The benefits of the compressed workweek for the organization include lower absenteeism and possible improved performance. T GT Fa
144.
Potential disadvantages of the compressed workweek for the organization include scheduling problems, possible customer complaints, and union objections. T GT Fa
Flexible Working Hours 145.
The compressed workweek describes any work schedule that gives employees some choice in the pattern of their daily work hours. F KT Fa
146.
A company that requires employees to be at work between 9:30 a.m. and 3:30 p.m. but allows them to schedule their remaining work day to fit personal needs is using flexible working hours T GT Ap
147.
Flexible working hours usually result in greater autonomy for individuals with respect to their work schedules, along with a greater opportunity to them to take care of personal affairs. T GT Fa
148.
Flexible working hours usually result in greater absenteeism and tardiness. F GT Fa
149.
Flexible working hours usually result in a positive attitude toward the organization and higher job performance. T GT Fa
Job Sharing 150.
Job sharing involves a work schedule wherein one full-time job is split between two or more persons. T KT Fa
600
Schermerhorn & Wright: Management
151.
When employees in an organization agree to cut back on their work hours so everyone can keep their jobs during a pending layoff, they are using the alternative work arrangement of work sharing. T GT Fa
152.
Through the use of work sharing, employers can retain trained and loyal workers when forced to temporarily economize by reducing labour costs. T GT Fa
153.
As a result of work sharing, employees whose seniority would protect them from layoffs will lose some income and employees who otherwise would be laid off will continue to work but with reduced earnings. T GT Fa
Telecommuting 154.
Telecommuting is a work arrangement that allows at least a portion of scheduled work hours to be completed outside of the office. T KT Fa
155.
Hoteling occurs when telecommuters come to the central office and use temporary office facilities. T GT Fa
156.
Virtual offices include everything from an office at home to mobile workspaces in automobiles. T GT Fa
157.
Telecommuting frees the jobholder from the normal constraints of commuting, fixed hours, special work attire, and even direct contact with supervisors. T GT Fa
158.
Telecommuting is facilitated by information technology and it demonstrates how technology can impact job designs. T GT Fa
159.
Potential disadvantages of telecommuting include freedom from the constraints of commuting and fixed hours, increased productivity, being one’s own boss, and having more personal time. F GT Fa
160.
Potential advantages of telecommuting include less personal time, difficulty in separating work and personal life, feelings of isolation, and loss of visibility for promotion. F GT Fa
161.
Workers can make telecommuting effective by avoiding human contact. F MN Fa
162.
Workers can make telecommuting effective by limiting nonwork distractions and establishing positive routines and work habits. T MN Fa
Chapter 15: Individual Behaviour and Performance 163.
601
Workers can make telecommuting effective by keeping freedoms and responsibilities in balance. T MN Fa
Part-Time Work 164.
Part-time work is done on any schedule that is less than the standard 40-hour workweek and that does not qualify the individual as a full-time employee. T KT Fa
165.
Employees who are employed on a part-time and temporary basis to supplement a permanent workforce are called contingency workers T KT Fa
166.
Contingency workers now constitute approximately 50 percent of the American workforce. F GT Fa
167.
It is now possible to hire on a part-time basis everything from secretaries and unskilled labourers to engineers to computer programmers and even executives. T GT Fa
168.
Many employers like the flexibility that contingency workers offer in controlling labour costs and dealing with cyclical labour demand. T GT Fa
169.
The use of contingency workers has grown dramatically because they are just as committed to their employers as permanent workers are and they significantly improve productivity. F GT Fa
170.
Contingency workers are often paid less and they typically fail to receive important benefits. T GT Fa
Multiple Choice Questions CHAPTER INTRODUCTION 171.
Jeff Pfeffer and Charles O’Reilly believe that too many organizations under-perform because they __________. A. Fail to bring innovative products to the marketplace. B. Are not adequately financed. C. Operate in an uncertain environment. D. Fail to tap into the talents of their human resources. E. Lack visionary leadership. D GT Fa
602 172.
Schermerhorn & Wright: Management When the __________ is/are designed well, people can achieve high performance results and experience a high quality of work life. A. Employment contract. B. Work experience. C. Psychological contract. D. Job description. E. Organizational policies. B GT Ap
UNDERSTANDING PEOPLE AT WORK (STUDY QUESTION 1) 173.
Which of the following is an incorrect statement about the meaning of work in contemporary society? A. Work can be a “turn-on” or a “turn-off.” B. Some people, too many people, work under conditions that fail to provide them with respect and satisfaction. C. People at work can both achieve high performance and experience job satisfaction. D. People working under conditions that fail to provide them with respect and satisfaction is inevitable if companies are to control costs sufficiently to compete in the global marketplace. E. Everyone gains when managers value people and create jobs and work environments that respect people’s needs and potential. D GT Ap
174.
_______ are the foundations of high performance in the workplace. A. Effective strategies. B. Visionary leaders. C. People. D. Good products and services. E. Adequate financial capital and a strong market share. C GT Ap
Organizational Behaviour 175.
__________ is the study of individuals and groups in organizations. A. Organizational theory. B. Organizational development. C. Organizational behaviour. D. Organizational design. E. Organizational culture. C KT Fa
176.
The major foundations of organizational behaviour (OB) as a scientific discipline include all of the following EXCEPT: A. OB is an interdisciplinary body of knowledge. B. OB uses of scientific methods. C. OB focuses on practical applications. D. OB emphasizes contingency thinking. E. OB emphasizes marketing, production, finance, and human resource principles. E GT Fa
Chapter 15: Individual Behaviour and Performance 177.
603
__________, which is one of the most important contingency issues in organizational behaviour, concerns finding a good match of individual interests and capabilities with job characteristics. A. Work-life balance. B. Quality of work life. C. The psychological contract. D. The person-job fit. E. Cognitive dissonance. D GT Fa
Psychological Contracts 178.
A(n) __________ is a set of expectations held by an individual about what will be given and received in the employment relationship. A. Work rubric. B. Employment contract. C. Psychological contract. D. Exchange agreement. E. Employment norm. C KT Fa
179.
The ideal work situation is one in which the exchange of values in the psychological contract __________. A. Is fair. B. Favours the individual. C. Favours the organization. D. Is positive. E. Is negative. A GT Fa
180.
When the psychological contract is broken, __________. A. The employee is fired. B. Morale problems easily develop. C. Managers have failed to negotiate a solid agreement. D. The organization will be sued. E. Employees get what they deserve. B GT Fa
181.
The idea of a psychological contract between an individual and an organization suggests that the individual __________ in exchange for __________. A. Makes commitments ... power. B. Makes contributions ... inducements. C. Provides performance ... contributions. D. Offers inputs ... outputs. E. Makes sacrifices ... money. B GT Fa
604
Schermerhorn & Wright: Management
182.
In the psychological contract, contributions are __________. A. Offered to the organization by the individual. B. Offered to the individual by the organization. C. Exchanged mutually by the organization and the individual. D. The monetary or economic incentives provided by the organization E. The organization’s requirement that employees support charitable causes. A GT Fa
183.
Contributions, provided by the individual in the psychological contract, include __________. A. Effort, time, creativity, loyalty, and commitment. B. Things that make the individual a desirable resource. C. Valued work activities. D. All of the above. E. None of the above. D GT Fa
184.
In the psychological contract, inducements __________. A. Are offered to the organization by the individual. B. Are offered to the individual by the organization. C. Are exchanged mutually by organization and the individual. D. Represent individual psychological factors. E. Apply only to managers, not to nonsupervisory employees. B GT Fa
185.
Inducements, offered by the organization in the psychological contract, __________. A. Are fringe benefits, training, pay, opportunity, security, and respect. B. Are things that the organization gives to the employee. C. Should be of value to the employee. D. All of the above. E. None of the above. D GT Fa
Work and the Quality of Life 186.
__________ describes the overall quality of human experiences in the workplace. A. Organizational commitment. B. Job satisfaction. C. Human contentment. D. Total quality management. E. Quality of work life. E GT Fa
187.
Quality of work life has many different implications. Which of the following is NOT one of these implications? A. Work is an important component of the quality of life. B. For some people, jobs are a source of pleasure C. For some people work is pure drudgery. D. For most people, the overall quality of life is affected significantly by the quality of work life. E. For most people, the overall quality of life is unaffected by the quality of work life. E GT Ap
Chapter 15: Individual Behaviour and Performance
605
188.
Which of the following statements accurately describe the impact of managerial practices on quality of work life? A. Poor management practices can diminish the quality of work life for employees. B. Poor management practices can diminish the overall quality of life for employees. C. The managerial goal of addressing quality of work life issues is to help create work environments wherein people have positive experiences while meeting high performance expectations. D. All of the above. E. None of the above. D GT Ap
189.
Which of the following statements regarding work and the quality of life is NOT correct? A. The quality of work life is an important component of quality of life. B. A manager’s job carries a high level of responsibility for promoting a high quality of work life. C. The way managers treat people at work may have consequences extending far beyond the work setting. D. Poor management can diminish both a person’s quality of work life and his/her overall quality of life. E. Good management can enhance an employee’s quality of work life but has little to do with the employee’s overall quality of life. E GT Ap
Personality Traits 190.
__________ refer(s) to the combination or overall profile of characteristics that make one person unique from every other. A. Attitudes. B. Personality. C. Perception. D. Attributions. E. Cognitive dissonance. B KT Fa
191.
__________ is one of the “Big Five” personality traits that reflects the degree to which someone is outgoing, sociable, and assertive. A. Extroversion. B. Agreeableness. C. Conscientiousness. D. Emotional stability. E. Openness. A KT Fa
192.
Which of the following statements about the personality trait of extroversion is/are accurate? A. Extroversion is the degree to which someone is outgoing, sociable, and assertive. B. An introvert is comfortable and confident in interpersonal relationships. C. An extrovert is more withdrawn and reserved in interpersonal relationships. D. A and B. E. A and C. A GT Fa
606
Schermerhorn & Wright: Management
193.
__________ is one of the “Big Five” personality traits that reflects the degree to which someone is good-natured, cooperative, and trusting. A. Extroversion. B. Agreeableness. C. Conscientiousness. D. Emotional stability. E. Openness. B KT Fa
194.
Which of the following statements about the personality trait of agreeableness is/are accurate? A. Agreeableness is the degree to which someone is good-natured, cooperative, and trusting. B. An agreeable person gets along well with others. C. A disagreeable person is a source of conflict and discomfort for others. D. B and C. E. A, B, and C. E GT Fa
195.
__________ is one of the “Big Five” personality traits that reflects the degree to which someone is responsible, dependable, and careful. A. Extroversion. B. Agreeableness. C. Conscientiousness. D. Emotional stability. E. Openness. C KT Fa
196.
Which of the following statements about the personality trait of conscientiousness is/are accurate? A. Conscientiousness is the degree to which someone is responsible, dependable, and careful. B. A conscientious person focuses on what can be accomplished and meets commitments. C. A person lacking conscientiousness is careless, often trying to do too much and failing, or doing little. D. A and B. E. A, B, and C. E GT Fa
197.
__________ is one of the “Big Five” personality traits that reflects the degree to which someone is relaxed, secure, and unworried. A. Extroversion. B. Agreeableness. C. Conscientiousness. D. Emotional stability. E. Openness. D KT Fa
198.
Which of the following statements about the personality trait of emotional stability is/are accurate? A. Emotional stability is the degree to which someone is relaxed, secure, and unworried. B. An emotionally unstable person is calm and confident. C. An emotionally stable person is anxious, nervous, and tense. D. B and C. E. A, B, and C. A GT Fa
Chapter 15: Individual Behaviour and Performance
607
199.
__________ is one of the “Big Five” personality traits that reflects the degree to which someone is curious, open to new ideas, and unworried. A. Extroversion. B. Agreeableness. C. Conscientiousness. D. Emotional stability. E. Openness. E KT Fa
200.
Which of the following statements about the personality trait of openness is/are accurate? A. Openness is the degree to which someone is curious, open to new ideas, and unworried. B. An open person is broad-minded, receptive to new things, and open to change. C. A person lacking openness is narrow-minded, has few interests, and is resistant to change. D. All of the above. E. None of the above. D GT Fa
201.
Managers must be able to understand and respond to personality differences when __________. A. Making job assignments. B. Building teams. C. Engaging in daily work activities. D. A and C. E. A, B, and C. E GT Ap
202.
__________ is the extent to which people believe they are in control of their destinies versus believing that that what happens to them is beyond their control. A. Locus of control. B. Authoritarianism. C. Machiavellianism. D. Problem-solving style. E. Self-monitoring. A KT Fa
203.
Which of the following statements about the personality trait of locus of control is/are accurate? A. Locus of control is the extent to which people believe they are in control of their destinies versus believing that that what happens to them is beyond their control. B. Externals accept responsibility for their own actions. C. Internals blame others and outside forces for what happens to them. D. B and C. E. A, B, and C. A KT Fa
204.
__________ is the degree to which a person defers to authority and accepts status differences. A. Locus of control. B. Authoritarianism. C. Machiavellianism. D. Problem-solving style. E. Self-monitoring. B KT Fa
608
Schermerhorn & Wright: Management
205.
People with __________ are control-oriented in leadership positions and subservient as followers. A. An external locus of control. B. A Machiavellian personality. C. An authoritarian personality D. Sensation-thinker problem-solving style. E. A high self-monitoring personality. C GT Fa
206.
__________ describes the extent to which someone is emotionally detached and manipulative in using power. A. Locus of control. B. Authoritarianism. C. Machiavellianism. D. Problem-solving style. E. Self-monitoring. C KT Fa
207.
Which of the following statements about the personality trait of Machiavellianism is/are accurate? A. Machiavellianism describes the extent to which someone is emotionally detached and manipulative in using power. B. The “low-mach” personality is exploitative and unconcerned about others. C. The “high-mach” personality is deferential in allowing power to be exerted over him/her. D. B and C. E. A, B, and C. A GT Fa
208.
__________ refers to the ways people gather and evaluate information for decision making. A. Locus of control. B. Authoritarianism. C. Machiavellianism. D. Problem-solving style. E. Self-monitoring. D KT Fa
209.
Which of the following statements regarding the assessment of problem-solving styles is/are incorrect? A. Information is evaluated by sensation or intuition. B. Sensation involves looking for the “big picture” and being willing to deal with various possibilities. C. Intuition emphasizes details, facts, and routine. D. All of the above. E. None of the above. E GT Fa
210.
Which of the following statements regarding the assessment of problem-solving styles is/are incorrect? A. Information is gathered by thinking or feeling. B. Thinking involves using reason and analysis. C. Feeling involves responding to the feelings and desires of others. D. B and C. E. A, B, and C. D GT Fa
Chapter 15: Individual Behaviour and Performance
609
211.
Which of the following problem-solving style descriptions is/are accurate? A. Sensation-Thinkers (STs) take a realistic approach to problem solving; they prefer “facts,” clear goals, and certainty. B. Intuitive-Thinkers (NTs) are comfortable with abstraction and unstructured solutions, tending to be idealistic and to avoid details. C. Intuitive-Feelers (NFs) are insightful, like to deal with broad issues, and value flexibility and human relationships. D. Sensation-Feelers (SFs) emphasize analysis using facts, while being open communicators and respectful of feelings and values. E. A, B, C, and D are accurate problem-solving style descriptions. E GT Fa
212.
__________ reflects the degree to which someone is able to adjust and modify behaviour in response to the situation and external factors. A. Locus of control. B. Authoritarianism. C. Machiavellianism. D. Problem-solving style. E. Self-monitoring. E KT Fa
213.
Which of the following statements regarding self-monitoring is/are correct? A. A low self-monitor tends to be a learner, comfortable with feedback, and both willing and able to change. B. A high self-monitor is predictable, tending to act consistently regardless of circumstances. C. Self-monitoring reflects the degree to which someone is able to adjust and modify behaviour in response to the situation and external factors. D. A and B. E. A, B, and C. C GT Fa
WORK ATTITUDES AND BEHAVIOUR (STUDY QUESTION 2) What Is an Attitude? 214.
__________ is a predisposition to act in a certain way toward people and things in one’s environment. A. An attitude. B. A norm. C. A behaviour. D. A need. E. Locus of control. A KT Fa
215.
Attitudes, whether positive or negative, have a(n) __________ component. A. Emotional. B. Behavioural. C. Cognitive. D. A and C. E. A, B, and C. E GT Fa
610
Schermerhorn & Wright: Management
216.
The __________ component of an attitude reflects a belief or opinion. A. Normative. B. Cognitive. C. Affective. D. Perceptual. E. Behavioural. B GT Fa
217.
The __________ component of an attitude reflects a specific feeling. A. Normative. B. Cognitive. C. Affective. D. Perceptual. E. Behavioural. C GT Fa
218.
The __________ component of an attitude reflects an intention to behave consistently with the belief and feeling. A. Normative. B. Cognitive. C. Affective. D. Perceptual. E. Behavioural. E GT Fa
219. __________ describes the discomfort a person feels when attitudes and behaviour are inconsistent. A. Affective state. B. Cognitive component. C. Cognitive dissonance. D. Job involvement. E. Job dissatisfaction. C KT Fa Job Satisfaction 220.
__________ is the degree to which an individual feels positively or negatively about various aspects of work. A. Employee loyalty. B. Organizational loyalty C. Work commitment. D. Job commitment. E. Job satisfaction. E KT Fa
Chapter 15: Individual Behaviour and Performance
611
221.
Job satisfaction __________. A. Is the sum total of the individual’s positive work experiences. B. Is too personal for a manager to take into account for all individuals. C. Relates to job context, not job content. D. Is the degree to which an individual feels positively or negatively about various aspects of the work. E. Is seldom researched because it cannot be objectively measured. D KT Fa
223.
Common aspects of job satisfaction include all of the following EXCEPT: A. Satisfaction with tasks. B. Satisfaction with information technology. C. Satisfaction with the work setting. D. Satisfaction with supervision. E. Satisfaction with coworkers. B GT Fa
224.
Which of the following items accurately describe a common aspect of job satisfaction? A. Satisfaction with pay. B. Satisfaction with advancement opportunities. C. Satisfaction with organizational strategy. D. Both A and B are common aspects of job satisfaction. E. Both B and C are common aspects of job satisfaction. D GT Fa
225.
Research has demonstrated a strong relationship between __________ and __________. A. Job satisfaction absenteeism and turnover. B. Job satisfaction monetary compensation. C. Job involvement usage of computers. D. Job enrichment job rotation. E. Job design effective hiring practices. A GT Fa
226.
All but one of the following statements about job satisfaction and its implications are true. Which statement is NOT true? A. Workers who are more satisfied with their jobs are absent less frequently. B. Dissatisfied workers are more likely to quit their jobs and satisfied workers are more likely to stay. C. Absenteeism and turnover are costly in terms of additional recruitment and training. D. Job satisfaction is closely related to job involvement and organizational commitment. E. Job involvement and organizational commitment have few, if any, quality of work life implications. E GT Fa
612
Schermerhorn & Wright: Management
227.
__________ refers to the extent to which an individual is dedicated to a job. A. Job satisfaction. B. Job involvement. C. Organizational commitment. D. Job enrichment. E. The psychological contract. B KT Fa
228.
__________ refers to the loyalty of an individual to the organization. A. Job satisfaction. B. Job involvement. C. Organizational commitment. D. Job enrichment. E. The psychological contract. C KT Fa
229.
The opportunity to do one’s best every day, believing that one’s opinions count, believing that fellow workers are committed to quality, and believing there is a direct connection between one’s work and the company’s mission are attitudes that are positively correlated with __________. A. Managerial generosity in compensation. B. Higher profits for the company. C. Increased market share for the company. D. B and C. E. A, B, and C. B GT Fa
Individual Performance 230.
__________ refer(s) to the quantity and quality of tasks accomplished by an individual or group at work. A. Job performance. B. Job outputs. C. System outputs. D. Organizational outputs. E. Quantity and quality of work life. A KT Fa
231.
Which statement concerning job performance is incorrect? A. Job performance is the quality and quantity of task contributions from the individual or group doing the job. B. Job performance should contribute to the accomplishment of organizational objectives. C. Job performance should add value to the organization’s production of useful goods and/or services. D. Job performance is the “bottom line” for people at work, and the cornerstone for overall organizational productivity. E. Job performance is achieved through individual tradeoffs with job satisfaction. E GT Fa
Chapter 15: Individual Behaviour and Performance
613
232.
For high performance to occur, an individual must have the __________. A. Capacity to perform. B. Willingness to perform. C. Opportunity to perform. D. All of the above. E. None of the above. D GT Fa
233.
Suppose that an individual possesses the right abilities to do the job, works in an atmosphere that creates an opportunity to perform, and is willing to work hard at the task. This individual would be predicted to be a high performer according to the __________. A. Thematic aptitude scale. B. Individual performance equation. C. Job placement criteria. D. Human resource criteria. E. Annual alpha concept. B GT Fa
234.
Which of the following statements about the dynamics of achieving high performance is NOT accurate? A. If high performance is to be achieved in any work setting, the individual contributor must possess the right abilities, work hard at the task, and have the necessary support. B. Performance = Ability + Support + Effort. C. Ability establishes an individual’s capacity to perform at a high level of accomplishment. D. To fully utilize their abilities workers need sufficient resources, clear goals and directions, freedom from unnecessary rules and job constraints, appropriate technologies, and performance feedback. E. Even the most capable, well-supported workers won’t achieve the highest performance levels unless they are willing to work hard. B GT Fa
JOB DESIGN ALTERNATIVES (STUDY QUESTION 3) 235.
A job is defined as __________. A. Work to be accomplished by individuals or groups. B. A collection of tasks performed in support of organizational objectives. C. A division of labour performed by people to accomplish a common purpose. D. The duties and responsibilities performed by an individual. E. Accomplishments achieved in the workplace. B KT Fa
236.
Which statement provides the correct definition of job design? A. Job design is the process of redesigning jobs to “fit” a person’s individual goals. B. Job design is the process of creating or defining jobs by assigning specific tasks to individuals and groups. C. Job design provides directions to individuals regarding specific work tasks. D. Job design creates a work structure for bureaucratic organizations. E. Job design identifies key individuals for specific tasks. B KT Fa
614
Schermerhorn & Wright: Management
237.
Job design uses the insights of __________ to attain high levels of both job satisfaction and job performance. A. Motivation theories. B. Personality theory. C. Visionary leaders. D. Information technology. E. Adaptive organizations. A GT Fa
238.
A good job design is one that __________. A. Creates challenging jobs regardless of individual needs. B. Provides a good fit between the individual worker and the task requirements. C. Limits the use of technology. D. Attaches a cost figure to employee contributions. E. Determines whether or not an employee should be reprimanded for poor task performance. B GT Fa
239.
__________ refers to the number and variety of tasks contained in a job. A. Job scope. B. Job depth. C. Task specialization. D. Work variety. E. Job design. A GT Fa
240.
__________ is the extent to which planning and controlling responsibilities are present in a job. A. Job scope. B. Job depth. C. Managerial delegation. D. Employee-oriented job design. E. Functional job design. B GT Fa
241.
__________ refers to how narrowly a job is defined. A. Job scope. B. Job depth. C. Task specialization. D. Work variety. E. Job design. C GT Fa
Chapter 15: Individual Behaviour and Performance 242.
615
Which job design alternative(s) is/are correctly matched with the stated combination of job scope and job depth? A. Job simplification involves wide job scope, high job depth, and low task specialization. B. Job rotation and job enlargement involve narrow job scope, low job depth, and high task specialization. C. Job enrichment involves wide job scope, low job depth, and moderate task specialization. D. All of these job design alternatives are correctly matched with the job scope/job depth combinations. E. None of these job design alternatives is correctly matched with the job scope/job depth combinations. E GT Fa
Scientific Management 243.
The job design approach that involves standardizing work procedures so that people work in welldefined and highly specialized tasks is known as __________. A. Job compression. B. Job simplification. C. Job rotation. D. Job enlargement. E. Job enrichment. B KT Fa
244.
Automation is described in the textbook as __________. A. The most extreme form of job compression. B. The opposite of job simplification. C. The goal of telecommuting. D. The total mechanization of the job. E. At the low end of specialization on the job design continuum. D KT Fa
245.
The classic assembly-line job is an example of the job design strategy of __________. A. Job compression. B. Job rotation. C. Task identity. D. Job focus. E. Job simplification. E GT Ap
246.
All of the following are advantages of job simplification EXCEPT: A. Workers are easier to train. B. Workers are easier to supervise. C. Workers do not require complex skills. D. Workers are easier to replace. E. Workers may become bored and dissatisfied. E GT Fa
616 247.
Schermerhorn & Wright: Management All of the following are potential disadvantages of job simplification EXCEPT: A. Tardiness and absenteeism. B. Difficulty in training and supervising workers. C. Boredom with tasks. D. Alienation from work. E. Poor performance. B GT Fa
Job Rotation and Job Enlargement 248.
The job design strategy that increases task variety by periodically shifting workers among jobs involving different task assignments is called __________. A. Job sharing. B. Job simplification. C. Job enlargement. D. Job rotation. E. Job enrichment. D KT Fa
249.
Which of the following is NOT true of job rotation? A. Workers are shifted among jobs with different task assignments. B. There is a significant improvement in job depth. C. Job rotation can be done regularly or periodically. D. Job rotation can broaden people’s understanding of different jobs. E. Workers experience greater task variety. B GT Fa
250.
__________ is taking place when task variety is increased by combining into one job, two or more tasks that were previously assigned to separate workers A. Automation. B. Job simplification. C. Job enlargement. D. Job rotation. E. Job enrichment. C KT Fa
251.
__________ involves pulling prework and/or later work stages into the job in order to enlarge the job. A. Pre-work management. B. Post-work management. C. Horizontal loading. D. Vertical loading. E. Task stretching. C GT Fa
Chapter 15: Individual Behaviour and Performance 252.
617
The modified assembly-line job, which allows a worker to perform a greater number of tasks and periodically change with other workers, illustrates the job design strategies of __________. A. Job enrichment and job rotation. B. Job enrichment and job enlargement. C. Job sharing and job rotation. D. Job sharing and job enlargement. E. Job rotation and job enlargement. E GT Ap
Job Enrichment 253.
In promoting job enrichment, Frederick Herzberg says: “If you want people to do a good job, __________.” A. Pay them a lot of money. B. Give them a beautiful environment. C. Give them a good job to do. D. Provide them with a good supervisor. E. Give them a hygienic workplace. C GT Fa
254.
__________ is the practice of building more opportunities for satisfaction into a job by expanding its content to include work planning and evaluating duties that are normally performed by the supervisor. A. Job rotation. B. Job enlargement. C. Job sharing. D. Job expansion. E. Job enrichment E KT Fa
255.
Job enrichment differs from other job design alternatives in that it __________. A. Is concerned with job content as well as job context. B. Seeks to expand job depth, not just job scope. C. Works for groups as well as for individuals. D. Is endorsed by the unions. E. Expands the psychological contract. B GT Fa
256.
When a supervisor adds planning and evaluating duties to a worker’s responsibilities, the supervisor has enriched the job by increasing __________. A. Job scope. B. Job depth. C. The satisfier quotient. D. Context factors. E. Security factors. B GT Fa
618
Schermerhorn & Wright: Management
257.
Changes in a job that are designed to increase job depth are sometimes called __________. A. Horizontal loading. B. Vertical loading. C. Task sharing. D. Skill amplifiers. E. Automation. B GT Fa
258.
Suppose there is a team-assembly job in which a designated group of workers has some planning and evaluating responsibilities. This illustrates the job design alternative of __________. A. Job enlargement. B. Job rotation. C. Job sharing. D. Job inducements. E. Job enrichment. E GT Ap
259.
All of the following are recommendations for enriching jobs through vertical loading EXCEPT: A. Make people understand their performance accountability. B. Allow people to do complete units of work. C. Make periodic reports directly available to supervisors instead of workers. D. Remove controls that limit people’s discretion in their work. E. Grant employees authority to make decisions regarding their work. C MN Fa
DIRECTIONS IN JOB ENRICHMENT (STUDY QUESTION 4) 260.
The __________ of job enrichment offers a way for managers to create enriched or unenriched jobs that best fit the needs of people and the organization. A. Flexible working hours model. B. Core characteristics model. C. Job enlargement model. D. The performance enhancement model. E. Alternative work arrangements model. B GT FA
Core Characteristics Model 261.
In the core job characteristics model, __________ refers to the degree to which a job requires a variety of different activities to carry out the work, and involves the use of a number of different skills and talents of the individual. A. Task identity. B. Task significance. C. Skill variety. D. Autonomy. E. Growth potential. C GT Fa
Chapter 15: Individual Behaviour and Performance
619
262.
The degree to which the job requires completion of a “whole” and identifiable piece of work is the core job characteristic of __________. A. Task identity. B. Task significance. C. Skill variety. D. Feedback from the task. E. Growth potential. A GT Fa
263.
In the core characteristics model, __________ refers to the degree to which the job has a substantial impact on the lives or work of other people elsewhere in the organization or in the external environment. A. Task identity. B. Task significance. C. Skill variety. D. Autonomy. E. Growth potential. B GT Fa
264.
__________ is the core job characteristic that reflects the degree to which the job gives the individual freedom, independence, and discretion in scheduling the work and in determining the procedures for carrying it out. A. Growth potential. B. Autonomy. C. Task significance. D. Work motivation. E. Context satisfaction. B GT Fa
265.
The degree to which the work activities required by the job result in the individual obtaining direct and clear information on his or her performance describes the core characteristic of __________. A. Task identity. B. Task significance. C. Skill variety. D. Autonomy. E. Feedback. E GT Fa
266.
In the core job characteristics model, critical psychological states include __________. A. Experienced meaningfulness of work. B. Experienced responsibility for work outcomes. C. Knowledge of actual results of work. D. A and B. E. A, B, and C. E GT Fa
620
Schermerhorn & Wright: Management
267.
Which choice correctly matches core job characteristics with critical psychological states in the core characteristics model? A. Task significance links to experienced responsibility for work outcomes. B. Skill variety links to experienced meaningfulness of the work. C. Task identity links to knowledge of actual results of the work. D. Autonomy links to knowledge of actual results of the work. E. Feedback links to experienced meaningfulness in the work. B GT Fa
268.
Which of the following statements accurately describe the linkages between core job characteristics and critical psychological states? A. Skill variety, task identity, and task significance affect the critical psychological state of experienced meaningfulness of the work. B. Autonomy affects the critical psychological state of experienced responsibility for the outcomes of the work. C. Feedback affects the critical psychological state of knowledge of actual results of the work. D. Alternatives A and C are correct. E. Alternatives A, B, and C are correct. E GT Fa
269.
Which of the following is NOT an expected job outcome in the core characteristics model of job enrichment? A. High internal work motivation. B. High work effectiveness. C. High general job satisfaction. D. High growth satisfaction. E. High turnover from promotions and transfers. E GT Fa
270.
The people most likely to respond favourably to job enrichment will __________. A. Have strong higher-order needs. B. Be satisfied with the job context. C. Have sufficient levels of training, education, and intelligence to do enriched jobs. D. All of the above. E. None of the above. D GT Fa
271.
__________ refers to the desire to achieve psychological growth in one’s work. A. Work needs. B. Growth-need strength. C. Psychological desire. D. Developmental needs. E. Work development desires. B KT Fa
Chapter 15: Individual Behaviour and Performance
621
272.
Which of the following is NOT a way to improve one or more of the core job characteristics? A. Establishing client relationships. B. Forming natural work units. C. Horizontal loading. D. Opening feedback channels. E. Combining tasks. C GT Ap
273.
All of the following are ways to improve the core job characteristics EXCEPT: A. Provide opportunities for people to receive performance feedback. B. Make sure that the tasks people perform are logically related. C. Protect people from interference from clients and other people outside the organization. D. Expand job responsibilities by pulling together into one job a number of tasks from other jobs. E. Give people more control over their work by increasing their authority to engage in planning and controlling activities. C GT Ap
Technology and Job Enrichment 274.
Job designs that use technology to best advantage while still treating people with respect and allowing their human talents to be applied to the fullest potential are called __________. A. Job specializations. B. Job rotations. C. Sociotechnical systems. D. Techno-human systems. E. Job simplifications. C KT Fa
275.
__________ refers to the use of computer-controlled machines to completely automate work tasks previously performed manually. A. Automation. B. Computerization. C. Machine work. D. Robotics. E. Electronic work systems. D GT Fa
276.
Which of the following descriptions of robotics is/are accurate? A. Robotics represents the most extreme form of job simplification. B. Robotics offers an opportunity for technology to take over many routine tasks previously assigned to people, thereby freeing human talents for more enriched job assignments. C. Robotics demonstrates that technology utilization and job enrichment can be complementary strategies. D. B and C. E. A, B, and C. E GT Fa
622
Schermerhorn & Wright: Management
Questions and Answers on Job Enrichment 277.
In considering whether or not to enrich jobs, managers should consider which of the following questions? A. Is it expensive to implement job enrichment? B. Will people demand more pay for doing enriched jobs? C. Should everyone’s job be enriched? D. What do the unions –– if relevant to a company –– say about job enrichment? E. Managers should consider all of these questions. E GT Fa
278.
Which of the following is NOT a concern that managers need to address in considering whether or not to enrich jobs? A. The cost of job enrichment grows as the required changes in technology, workflow, and other facilities become more complex. B. If people are being paid truly competitive wages, the satisfaction of performing enriched tasks will be adequate compensation for the increased work involved. C. Any manager who employs job enrichment should recognize that pay is likely to be an unimportant issue for the people involved. D. Job enrichment is most appropriate for high growth-need strength workers who have the training, education, and ability to perform the enriched job. E. At least some union officials consider wages and benefits to be more important issues than job enrichment. C GT Fa
ALTERNATIVE WORK ARRANGEMENTS (STUDY QUESTION 5) 279.
Which of the following trends is/are creating pressure for the development of alternative work arrangements in the modern workplace? A. The changing content of jobs. B. The changing context of jobs. C. The needs and interests of a diverse workforce. D. All of the above. E. None of the above. D GT Fa
280.
Alternative work arrangements commonly used today include all of the following EXCEPT: A. Job sharing. B. Telecommuting. C. Flexible working hours. D. Compressed workweek. E. Job enrichment. E GT Fa
Chapter 15: Individual Behaviour and Performance
623
The Compressed Workweek 281.
Any work schedule that allows a full-time job to be completed in less than the standard five days of eight-hour shifts is known as __________. A. Flexible working hours. B. The compressed workweek. C. The “noble dream.” D. Telecommuting. E. Job simplification. B KT Fa
282.
The most common form of __________ is a “4-40” schedule –– that is, 40 hours of work accomplished in four 10-hour days. A. The compressed workweek. B. Job sharing. C. Flexible working hours. D. Job simplification. E. Telecommuting. A GT Ap
283.
Which of the following statements does NOT accurately describe the compressed workweek? A. The “5 day, 8-hour day” work schedule is an example of the compressed workweek. B. The benefits of the compressed workweek for individuals include more leisure time and lower commuting costs. C. Potential disadvantages of the compressed workweek for individuals include increased fatigue and family adjustment problems. D. The benefits of the compressed workweek for the organization include lower absenteeism and possible improved performance. E. Potential disadvantages of the compressed workweek for the organization include scheduling problems, possible customer complaints, and union objections. A GT Fa
Flexible Working Hours 284.
__________ describes any work schedule that gives employees some choice in the pattern of their daily work hours. A. Flexible working hours. B. The compressed workweek. C. The “noble dream.” D. Telecommuting. E. Job simplification. A KT Fa
624
Schermerhorn & Wright: Management
285.
A company that requires employees to be at work between 9:30 a.m. and 3:30 p.m. but allows them to schedule their remaining work day to fit personal needs is using __________. A. The compressed workweek. B. Job sharing. C. Flexible working hours. D. Contingency workers. E. Telecommuting. C GT Ap
286.
Flexible working hours usually result in all of the following EXCEPT: A. Greater autonomy for individuals in work schedules. B. More absenteeism and tardiness. C. A positive attitude toward the organization. D. Higher job performance. E. Greater opportunity to take care of personal affairs. B GT Fa
Job Sharing 287.
__________ involves a work schedule wherein one full-time job is split between two or more persons. A. The compressed workweek. B. Job sharing. C. Flexible working hours. D. Contingency workers. E. Telecommuting. B KT Fa
288.
An organization that is able to employ two persons as one by having one person work mornings and the other person work afternoons on the same job is reaping the benefits of __________. A. Job sharing. B. Autonomous group scheduling. C. Job rotation. D. Skill variety. E. Job specialization. A GT Ap
289.
When employees in an organization agree to cut back on their work hours so everyone can keep their jobs during a pending layoff, they are using the alternative work arrangement of __________. A. Retainer scheduling. B. Job saving. C. Work sharing. D. Job sharing. E. Job compression. C GT Fa
Chapter 15: Individual Behaviour and Performance 290.
625
The potential effects of work sharing include which of the following? A. Employers can retain trained and loyal workers when forced to temporarily economize by reducing labour costs. B. Employees whose seniority would protect them from layoffs have the disadvantage of lost earnings. C. Employees who otherwise would be laid off will have continued work ⎯ though with reduced earnings. D. B and C. E. A, B, and C. E GT Fa
Telecommuting 291.
__________ is a work arrangement that allows at least a portion of scheduled work hours to be completed outside of the office. A. The compressed workweek. B. Job sharing. C. Flexible working hours. D. Contingency work. E. Telecommuting. E KT Fa
292.
Which of the following statements about telecommuting is/are correct? A. Telecommuting is sometimes called flexiplace. B. Hoteling occurs when telecommuters come to the central office and use temporary office facilities. C. Virtual offices include everything from an office at home to mobile workspaces in automobiles. D. B and C. E. A, B, and C. E GT Fa
293.
Which statement does NOT relate to telecommuting, as described in your text? A. The telecommuter is freed from the constraints of commuting, fixed hours, special work attire, and even direct contact with supervisors. B. Telecommuters are found in such areas as marketing, financial analysis, and administrative support. C. The number of telecommuters is declining from the peak of 20 million in the late-1990s. D. Telecommuting is facilitated by information technology. E. Telecommuting illustrates how technology can impact job designs. C GT Fa
294.
Potential advantages of telecommuting include all of the following EXCEPT: A. Freedom from the constraints of commuting and fixed hours. B. Increased productivity. C. More distractions. D. Being one’s own boss. E. Having more personal time. C GT Fa
626
Schermerhorn & Wright: Management
295.
Potential disadvantages of telecommuting include all of the following EXCEPT: A. Working too little. B. Less personal time. C. Difficulty in separating work and personal life. D. Feelings of isolation. E. Loss of visibility for promotion. A GT Fa
296.
Workers can make telecommuting effective by doing all of the following EXCEPT: A. Limiting nonwork distractions. B. Establishing positive routines and work habits. C. Avoiding human contact. D. Using the technology advantage. E. Keeping freedoms and responsibilities in balance. C MN Fa
Part-Time Work 297.
__________ work is done on any schedule that is less than the standard 40-hour workweek, and that does not qualify the individual as a full-time employee. A. Flextime. B. Telecommuting. C. Part-time. D. Compressed. E. Shared. C KT Fa
298.
Employees who are employed on a part-time and temporary basis to supplement a permanent workforce are called __________. A. Foreign workers. B. Contingency workers. C. Unreliable workers. D. Entrepreneurs. E. Technical workers. B KT Fa
299.
Which of the following statements about part-time work is inaccurate? A. Contingency workers now constitute approximately 50 percent of the American workforce. B. It is now possible to hire on a part-time basis everything from secretaries and unskilled labourers to engineers to computer programmers and even executives. C. Many employers like the flexibility that contingency workers offer in controlling labour costs and dealing with cyclical labour demand. D. Temporaries may lack the commitment of permanent workers and may lower productivity. E. Contingency workers are often paid less and they typically fail to receive important benefits. A GT Fa
Chapter 15: Individual Behaviour and Performance
627
Essay Questions 300.
Using the contributions and inducements that are referred to in the psychological contract between the individual and the organization, explain the nature of the employment relationship that you have had with an organization for which you now work or have worked in the past. Suggested Answer: A psychological contract is a set of expectations held by an individual about what will be given and received in the employment relationship ⎯ which is the starting point for achieving a person-job fit. A healthy psychological contract has a balance between the contributions a person makes to the organization and the inducements received in return. Contributions include, but are not limited to, a person’s effort, time, creativity, loyalty, and commitment that make the individual a valuable human resource. Inducements from the organization include, but are not limited to, pay, fringe benefits, training, opportunity, and respect that are given in exchange for the individual’s contributions. An ideal work situation is one in which the exchange of values in the psychological contract is considered fair. The students should apply this framework to an existing or prior employment relationship, clearly identifying the contributions and inducements. They should also indicate whether they believed the psychological contract was fair and provide an explanation for their judgments.
301.
Identify and define the “Big Five” personality traits. Describe the behavioural characteristics and tendencies of the polar opposites on each of these personality traits. Suggested Answer: The “Big Five” personality traits are extroversion, agreeableness, conscientiousness, emotional stability, and openness. Extroversion reflects the degree to which someone is outgoing, sociable, and assertive. An extrovert is comfortable and confident in interpersonal relationships, whereas an introvert is more withdrawn and reserved in interpersonal relationships. Agreeableness concerns the degree to which someone is good-natured, cooperative, and trusting. An agreeable person gets along well with others while a disagreeable person is a source of conflict and discomfort for others. Conscientiousness is the degree to which someone is responsible, dependable, and careful. A conscientious person focuses on what can be accomplished and meets commitments, while a person lacking conscientiousness is careless, often trying to do too much and failing, or doing little. Emotional stability reflects the degree to which someone is relaxed, secure, and unworried. An emotionally stable person is calm and confident whereas a person lacking emotional stability is anxious, nervous, and tense. Openness concerns the degree to which someone is curious, open to new ideas, and unworried. An open person is broad-minded, receptive to new things, and open to change, whereas a person lacking openness is narrow-minded, has few interests, and is resistant to change.
302.
What is job performance? What are the key factors involved in individual job performance and how are they related to one another in influencing individual performance?
628
Schermerhorn & Wright: Management Suggested Answer: Job performance is the quantity and quality of task accomplishments by an individual or group at work. Individual job performance can be described with the individual performance equation, which is: Performance = Ability x Support x Effort. This equation clearly indicates that if high performance is to be achieved in any work setting, the individual contributor must possess the right abilities, have the necessary support, and work hard at the task. Each performance component is essential; without any one component, performance will be low due to the multiplicative relationship that exists among ability, support, and effort. Performance begins with ability ⎯ it establishes an individual’s capacity to perform at a high level of accomplishment. Performance requires support ⎯ to fully utilize their abilities workers need sufficient resources, clear goals and directions, freedom from unnecessary rules and job constraints, appropriate technologies, and performance feedback. Performance involves effort ⎯ the willingness to work hard at a task is an essential component of the high-performance workplace. However, the decision to exert work effort rests squarely on the individual alone.
303.
Describe the core characteristics model of job enrichment. Explain how this model can provide guidance to practicing managers. Suggested Answer: According to the core characteristics model of job enrichment that is shown in Figure 15.4 of the textbook, an enriched job will be high on the following core job characteristics: • • • • •
Skill variety ⎯ the degree to which a job requires a variety of different activities to carry out the work and involves the use of a number of different skills and talents of the individual. Task identity ⎯ the degree to which the job requires the completion of a “whole” and identifiable piece of work; that is, one that involves doing a job from beginning to end with a visible outcome. Task significance ⎯ the degree to which the job has a substantial impact on the lives or work of other people elsewhere in the organization or in the external environment. Autonomy ⎯ the degree to which the job gives the individual substantial freedom, independence, and discretion in scheduling the work and in determining the procedures to be used in carrying it out. Feedback from the job itself ⎯ the degree to which carrying out the work activities required by the job results in the individual obtaining direct and clear information on the results of his or her performance.
The core job characteristics directly impact three critical psychological states. Skill variety, task identity, and task significance affect experienced meaningfulness of work; autonomy influences experienced responsibility for the outcomes of the work; and feedback affects knowledge of actual results of work activities. The critical psychological states, in turn, influence the following job outcomes: high internal work motivation, high growth satisfaction, high general job satisfaction, and high work effectiveness. The core job characteristics will not affect everyone in the same way. Employees who have high growth-need strength and the requisite knowledge and skills, and are satisfied with the work context will respond more favourably to enriched jobs. For those employees who will likely respond favourably to job enrichment, managers can improve core job characteristics. Managers can do this in the following ways:
Chapter 15: Individual Behaviour and Performance • • • • •
304.
629
Form natural units of work ⎯ make sure that the tasks people perform are logically related to one another and provide a clear and meaningful task identity. Combine tasks ⎯ expand job responsibilities by pulling together into one larger job a number of smaller tasks previously done by others. Establish client relationships ⎯ put people in contact with others who, as clients inside and/or outside the organization, use the results of their work. Open feedback channels ⎯ provide opportunities for people to receive performance feedback as they work and to learn how performance changes over time. Practice vertical loading ⎯ give people more control over their work by increasing their authority for planning and controlling activities previously done by supervisors.
Describe each of the major alternative work arrangements. What are the advantages and/or disadvantages to the individual and/or organization in using these options? Suggested Answer: The five major categories of alternative work arrangements are the following: compressed workweek, flexible working hours, job sharing, telecommuting, and part-time work. Each of these categories, along with their respective advantages and disadvantages, are described below. •
A compressed workweek is any work schedule that allows a full-time job to be completed in less than the standard five days of eight-hour shifts. The benefits of the compressed workweek for the individual are more leisure time and lower commuting costs. The benefits for the organization are lower absenteeism and potentially improved performance. The potential disadvantages of the compressed workweek for the individual are increased fatigue and family adjustment problems. The potential disadvantages for the organization include increased scheduling problems, possible customer complaints, and possible union opposition.
•
Flexible working hours describe any work schedule that gives employees some choice in the pattern of their daily work hours. The potential benefits of flexible working hours include giving people greater autonomy in work scheduling while ensuring that they maintain work responsibilities, thereby enabling organizations to attract and retain employees who have special non-work responsibilities. Flexible working hours also can boost worker morale.
•
Job sharing involves a work schedule whereby one full-time job is split between two or more persons. Job sharing can benefit organizations by enabling them to employ talented people who would otherwise be unable to work.
•
Telecommuting is a work arrangement that allows at least a portion of scheduled work hours to be completed outside of the office. The potential individual advantages of telecommuting include being one’s own boss and having more personal time. The potential disadvantages of telecommuting for individuals are working too much, difficulty in separating work and personal life, feelings of isolation, and loss of visibility for promotion. A potential disadvantage for the organization is that managers may experience difficulties in supervising work-at-home employees from a distance.
•
Part-time work is work done on any schedule less than the standard 40-hour workweek and does not qualify the individual as a full-time employee. Increasingly, employers are relying on part-time or contingency workers to supplement the full-time workforce, often
630
Schermerhorn & Wright: Management on a long-term basis. Because contingency workers can be easily hired, contracted, and terminated in response to changing needs, many employers like the flexibility they offer in controlling labour costs and dealing with cyclical labour demand. Organizational disadvantages in contingency workers pertain to their potential lack of commitment and their potential lower productivity. For the individual, the disadvantages are a lower pay rate and the lack of important benefits such as health care, life insurance, and pension plans.
Chapter 16:
TEAMS AND TEAMWORK True/False Questions CHAPTER INTRODUCTION 1.
Teams are rich in performance potential even though they are complex in the way they work. T GT Fa
2.
Teams are challenging to lead for high-performance results. T GT Fa
3.
Nearly all workers receive extensive training in teamwork skills. F GT Fa
TEAMS IN ORGANIZATIONS (STUDY QUESTION 1) 4.
With respect to teams and teamwork, the key question for managers and team leaders is: “How do we make sure that teams and teamwork are utilized to everyone’s best advantage?” T GT Fa
5.
A team is a small group of people with complementary skills, who work together to accomplish shared goals while holding themselves mutually accountable for performance results. T KT Fa
6.
The process of people actively working together in groups to accomplish common goals is called synergy. F KT Fa
7.
The process of people actively working together in groups to accomplish common goals is called teamwork. T KT Fa
Teamwork Pros and Cons 8.
The supervisor, facilitator, participant, and coach are four important team and teamwork roles for managers. T GT Fa
631
632
Schermerhorn & Wright: Management
9.
Serving as the appointed head of a work unit is an important team and teamwork role for managers. T GT Fa
10.
Serving as a peer leader and networking hub for a special task force is an important team and teamwork role for managers. T GT Fa
11.
Serving as a helpful contributing member of a project team is an important team and teamwork role for managers. T GT Fa
12.
Serving as an agent of broad-based organizational change is an important team and teamwork role for managers. F GT Fa
13.
Serving as a mentor or sponsor of a problem-solving team is an important team and teamwork role for managers. T GT Fa
14.
Social loafing refers to the presence of “free riders” who slack off because responsibility is diffused in teams and others are present to do the work. T KT Fa
15.
Social imperfection refers to the presence of “free riders” who slack off because responsibility is diffused in teams and others are present to do the work. F KT Fa
16.
Two important management skills are knowing when a team is the best choice for a task and knowing how to work with and manage a team to accomplish a task. T GT Fa
17.
Taking action to ensure that social loafing is addressed properly is an unimportant managerial
skill F 18.
GT
Fa
Personality conflicts and poor readiness to work, but not differences in work styles or task ambiguity, are commonly encountered problems in teams F GT Fa
Why Meetings Fail 19.
People arriving early and leaving late or taking things too seriously are some of the key problems typically associated with meetings. F MN Ap
20.
Nothing happening when the meeting is over and no one putting decisions into action are key problems typically associated with meetings. T MN Ap
Chapter 16: Teams and Teamwork
633
21.
Some key problems typically associated with meetings are: the discussion lacks candor; people are unwilling to tell the truth; and the right information isn’t available, so decisions get postponed. T MN Ap
22.
Meetings can and should be places where information is shared, decisions get made, and people gain understanding of each other. T GT Fa
Synergy and Usefulness of Teams 23.
Synergy refers to the whole being greater than the sum of the individual parts. T KT Fa
24.
Greater dependency on a strong leader and the positive impact of increasing organizational size are two very important benefits of teamwork. F GT Fa
25.
Better control and work discipline, more resources for problem solving, greater commitment to tasks, and more individual need satisfaction are possible positive outcomes of teamwork. T GT Fa
26.
Fostering innovation and creativity, improving the quality of decision making, increasing members’ commitment to tasks, and raising motivation through collective action are possible benefits of teams. T GT Fa
Formal and Informal Groups 27.
Emergent groups are part of the formal organizational structure and are created to fulfill a variety of essential operations. F KT Fa
28.
Formal work groups are the building blocks of organization structures. T GT Fa
29.
According to the perspective that organizations are interlocking networks of groups, managers and leaders serve as “linking pins” because each manager or leader acts as a superior in one work group and as a subordinate in the next higher-level one. T GT Fa
30.
According to the perspective that organizations are interlocking networks of groups, managers and leaders serve as “group processors” because they make the whole team function properly. F GT Fa
31.
Formal groups are ones that emerge within organizations from “spontaneous” relationships among people rather than being officially created by the organization to serve a particular purpose. F KT Fa
634
Schermerhorn & Wright: Management
32.
Informal groups are not recognized on organization charts and are not officially created to serve an organizational purpose. T KT Fa
33.
Informal groups that emerge because workers band together to pursue a common cause or special position are called support groups. F GT Fa
34.
Informal groups that emerge for a wide variety of personal reasons (including shared nonwork interests) are called interest groups. F GT Fa
35.
Informal groups that emerge because members basically help one another do their jobs are called friendship groups. F GT Fa
36.
Informal groups can have a positive impact on work performance. T GT Ap
37.
Relationships within informal groups may actually help speed the workflow in the formal structure. T GT Ap
38.
Informal groups can help satisfy social needs and provide security for group members. T GT Ap
39.
Informal groups perform tasks that are essential to the accomplishment of key operating objectives. F GT Ap
TRENDS IN THE USE OF TEAMS (STUDY QUESTION 2) 40.
The trend toward greater empowerment in organizations is associated with new developments in the use of teams. T GT Fa
41.
Committees, project teams, task forces, and cross-functional teams are used relatively infrequently in the modern workplace, whereas employee involvement teams enjoy extensive, widespread usage in the modern workplace. F GT Fa
42.
Developments in information technology are creating opportunities for people to work together in virtual teams. T GT Fa
Chapter 16: Teams and Teamwork
635
Committees, Project Teams and Task Forces 43.
A committee is a formal team of people working together outside their daily job assignments to pursue a specific purpose. T KT Fa
44.
Project teams or tasks forces bring together people from various parts of an organization to work on common problems, but do so on a temporary basis. T KT Fa
45.
A task force is a temporary group created to solve a specific problem. T KT Fa
46.
An autonomous work group is a temporary group created to solve a specific problem. F KT Fa
Cross-Functional Teams 47.
An organizational involvement committee has members who come from different functional units of the organization. F KT Ap
48.
Cross-functional teams are indispensable to organizations that emphasize adaptation and horizontal integration. T GT Ap
49.
Cross-functional teams are expected to focus purely on functional concerns and demands. F GT Fa
50.
Cross-functional teams are expected to share information and explore new ideas. T
51.
GT
Fa
Cross-functional teams are expected to seek creative solutions and to think and act crossfunctionally. T GT Fa
Employee Involvement Teams 52.
A group of workers who meet on a regular basis outside of their formal assignments, with the goal of applying their expertise and attention to continuous improvement is called an employee involvement team. T KT Fa
53.
A quality circle is a form of employee involvement team whose members meet regularly to discuss and plan specific ways to improve work quality. T KT Fa
636
Schermerhorn & Wright: Management
Virtual Teams 54.
A group of people who work together and solve problems through computer-mediated interactions instead of face-to-face meetings is operating as an automated quality circle F KT Fa
55.
A virtual team is also called a computer-mediated group or an electronic group network. T
GT
Fa
56.
Because of information technology, virtual teams provide a problem-free approach to dealing with issues among team members at geographically dispersed locations. F GT Ap
57.
Difficulty in establishing good working relationships may occur in virtual teams due to the depersonalization that results from the absence of face-to-face interaction. T GT Ap
58.
Virtual teams should begin with social messaging that allows members to exchange information about themselves to personalize the process. T GT Fa
59.
Virtual team members should be assigned clear roles so they can focus while working alone and also know what others are doing. T GT Fa
60.
Virtual team members must join and engage the team with positive attitudes that support a willingness to work hard to meet team goals. T GT Fa
Self-Managing Work Teams 61.
In a growing number of organizations, the functional team –– consisting of a first-level supervisor and her or his subordinates –– is being replaced by electronic networks. F GT Fa
62.
Self-managing teams have the authority to make decisions about how they share and complete their work. T KT Fa
63.
Autonomous support groups are teams of workers whose jobs have been redesigned to create a high degree of task interdependence and who have been give the authority to make many decisions about how they do the required work. F KT Fa
64.
Self-managing teams operate with participative decision making, shared tasks, and responsibility for many managerial tasks. T GT Fa
Chapter 16: Teams and Teamwork
637
65.
Self-managing teams are expected to help enhance performance, decrease costs, and improve morale. T GT Fa
66.
Self-managing teams have members train one another in order to develop multiple job skills. T GT Fa
67.
Members of self-managing teams do not evaluate one another’s performance contributions, nor do they hire or fire team members. F GT Fa
68.
Members of self-managing teams have discretion in distributing tasks and scheduling work within the team. T GT Fa
HOW TEAMS WORK (STUDY QUESTION 3) 69.
In considering the results that any team must achieve, performance means that a work group or team is expected to transform resource inputs into product outputs that have some value for the organization. T GT Fa
70.
In considering the results that any team must achieve, gratification means that members should experience satisfaction from performance results and their participation in the process. F GT Fa
71.
In considering the results that any team must achieve, future viability means the team should have a social fabric and work climate that makes members willing and able to work well together in the future. T GT Fa
What Is an Effective Team? 72.
An effective team is defined as one that achieves and maintains high levels of task performance, achieves and maintains member satisfaction, and remains viable for the future. T KT Fa
73.
Inputs to group process include the organizational setting, the nature of tasks, team size, and membership characteristics. T GT Fa
74.
As open systems, teams transform resource inputs (such as people and ideas) into outputs (such as task performance, member satisfaction, and team viability). T GT Fa
75.
Group process represents the throughputs in how teams work. T GT Fa
638
Schermerhorn & Wright: Management
76.
The organizational setting is an input factor to group process that is concerned with providing support in the form of information, material resources, technology, spatial arrangements, organization structures, and rewards. T GT Fa
77.
In comparison to complex tasks, simple tasks require more information exchange and more intense interactions. F GT Fa
78.
The threshold point at which team size becomes a significant input factor in effective group process is 12 team members F GT Fa
79.
Teams should have members with the right skill mix to master and perform tasks well, and the values and personalities that are sufficiently compatible for everyone to work together. T GT Fa
80.
Group process refers to how the members of a team actually work together as they transform inputs into outputs. T KT Fa
81.
Group process includes how well team members communicate, make decisions, and handle conflicts. T GT Fa
82.
Since group process is essential to team effectiveness, it guarantees team success. F GT Fa
83.
The Team Effectiveness Equation is: Team effectiveness = quality of input + (process gains – process losses). T GT Fa
84.
Team diversity can present significant group process challenges because of different values, personalities, experiences, demographics, and cultures among the members. T GT Fa
85.
The more heterogeneous the team, the easier it is to manage team member relationships. F GT Fa
86.
The more homogeneous the team, the greater the variety of available ideas , perspectives, and experiences that can add value to problem solving and task performance. F GT Fa
87.
The group process challenge is to maximize the advantages and minimize the potential disadvantages of team diversity. T GT Fa
Chapter 16: Teams and Teamwork
639
Stages of Team Development 88.
The phases or stages in the life cycle of any team are forming, storming, norming, performing, and adjourning. T GT Fa
89.
The phases or stages in the life cycle of any team are introduction, growth, maturity, and decline. F GT Fa
90.
In the life cycle of a team, the initial task orientation and interpersonal testing of individual members occurs in the forming stage. T GT Fa
91.
In the life cycle of a team, conflicts over tasks and ways of operating as a team occur in the storming stage. T GT Fa
92.
In the life cycle of a team, consolidation around task and operating agendas occurs in the performing stage. F GT Fa
93.
In the life cycle of a team, teamwork and focused task performance occur in the norming stage. F GT Fa
94.
In the life cycle of a team, task accomplishment and eventual disengagement occur in the adjourning stage. T GT Fa
95.
In the forming stage, coalitions or cliques may form as subgroups emerge. F GT Fa
96.
The storming stage of the team life cycle is characterized by periods of hostility and infighting as well as members’ clarified understanding of each other’s interpersonal styles. T GT Fa
97.
The norming stage of the team life cycle is characterized by a period of high emotionality, the identification of team boundaries and team roles, and the ability to handle membership disagreements in creative ways. F GT Fa
98.
During the performing stage of the team life cycle, total integration of team members occurs, and they engage in creative ways of dealing with complex tasks and interpersonal conflicts. T GT Fa
99.
A team that has achieved total integration at the performing stage of team development, will score high on the criteria of trust among members, feedback mechanisms, open communications, approach to decisions, and leadership sharing T GT Fa
640
Schermerhorn & Wright: Management
100.
A team that has achieved total integration at the performing stage of team development, will score moderately on the criteria of acceptance of goals, valuing diversity, member cohesiveness, support for each other, and performance norms. F GT Fa
101.
In the adjourning stage of the team life cycle, the team should ideally disband with the sense that important goals have been accomplished. T GT Fa
Norms and Cohesiveness 102.
“Rules” or “standards” that guide the behaviour of team members are called norms. T KT Fa
103.
When a team member violates team norms, the person violating the norms may be rewarded. F GT Fa
104.
When a team member violates team norms, the team may impose various sanctions on the offending member or expel the member from the team. T GT Fa
105.
A performance norm defines the level of work effort and performance that team members are expected to contribute. T GT Fa
106.
To build positive team norms, a leader can control results by performance reviews and regular feedback, and hold regular meetings to discuss team progress and ways of improving. T GT Fa
107.
To build positive team norms, a leader can train and orient new members to adopt desired behaviours. T GT Fa
108.
The degree to which members are attracted to and motivated to remain part of the team is called groupthink. F KT Fa
109.
In terms of team productivity, the best-case scenario of a work team’s performance norms and cohesiveness occurs with positive performance norms and high team cohesiveness. T GT Fa
110.
From a manager’s perspective, the worst-case scenario of a work team’s performance norms and cohesiveness occurs with negative performance norms and low team cohesiveness. F GT Fa
111.
In order to increase cohesion, a manager can induce agreement on team goals, increase interactions among members, reward team rather than individual results, or provide physical isolation from other teams. T GT Fa
Chapter 16: Teams and Teamwork
641
Task and Maintenance Needs 112.
Activities that contribute directly to the team’s performance purpose are called maintenance activities. F KT Fa
113.
Efforts to support the emotional life of the team as an ongoing social system are affiliation activities. F KT Fa
114.
Distributed leadership in teams makes every team member continually responsible for both recognizing when task or maintenance activities are needed and taking actions to provide them. T GT Fa
115.
The responsibility for task and maintenance activities belongs to the manager alone. F GT Fa
116.
Team effectiveness is reduced by self-serving, disruptive activities such as being aggressive, blocking, competing, withdrawing, self-confessing, seeking sympathy, horsing around, and seeking recognition. T GT Fa
Communication Networks 117.
A centralized communication network allows all members to communicate directly with each other. F KT Fa
118.
In a centralized communication network, communication flows only between individual members and a hub or central point. T KT Fa
119.
A restricted communication network seems to work best on simple tasks that require little creativity, information processing, and problem solving? F GT Fa
120.
A decentralized communication network seems to work best on complex tasks that require intense interaction and information sharing. T GT Fa
121.
Interacting groups use a decentralized communication network that reflects high interdependency around a common task. T GT Fa
122.
Coacting groups use a restricted communication network to deal more effectively with subgroup disagreements. F GT Fa
642 123.
Schermerhorn & Wright: Management Counteracting groups use a centralized communication network to coordinate independent individual efforts on behalf of a common task. F GT Fa
DECISION MAKING IN TEAMS (STUDY QUESTION 4) 124.
Problem solving is the process of making choices among alternative courses of action. F KT Fa
125.
As one of the most important group processes, decision making is complicated by the different ways in which teams can go about doing it. T GT Fa
How Teams Make Decisions 126.
Decision by lack of response occurs when one idea after another is suggested without discussing them, and then the team finally accepts an idea without any critical evaluation. T GT Fa
127.
Decision by minority rule is being used when a leader, manager, or committee head makes a decision for the team. F GT Fa
128.
Decision by authority rule is being used when two or three people can dominate the majority or “railroad” the majority into agreeing to a solution. F GT Fa
129.
When formal voting or polling takes place, with the objective of determining which idea is favoured by more than half the team members, the team is making a decision by majority rule. T GT Fa
130.
Teams will make decisions by consensus when they argue, engage in reasonable conflict, respect one another, and yet make a decision that does not require unanimity but can be supported by all team members. T GT Fa
131.
Teams will make decisions by consensus when all team members agree on a course of action. F 428 GT Fa
Assets and Liabilities of Group Decisions 132.
A very important team leadership skill is the ability to help a team choose the best decision method for the task at hand. T GT Fa
Chapter 16: Teams and Teamwork
643
133.
To be effective in deciding whether to use individual, consultative, or group decision methods for a particular situation, team leaders must know how to solve problems better than any of the team members. F GT Fa
134.
A potential advantage of group decision making is that it promotes decisions favoured by a small but powerful coalition. F GT Fa
135.
Group decision making brings more information, knowledge, and expertise to bear on problems, and expands the number of alternatives that are considered. T GT Fa
136.
Group decision making improves members’ understanding and acceptance of the final decision, and diminishes their commitment to follow through on implementing the decision. F GT Fa
137.
Members encountering social pressure to conform or feeling intimidated are potential disadvantages of group decision making. T GT Fa
Groupthink 138.
A tendency for highly cohesive groups to lose their evaluative capabilities is called groupthink. T KT Fa
139.
Symptoms of groupthink include: rationalizing unpleasant and disconfirming data; stereotyping competitors as weak, evil, and/or stupid; protecting members from hearing disturbing ideas or outside viewpoints; and applying direct pressure to deviants to conform to group wishes. T GT Fa
140.
Symptoms of groupthink include illusions of invulnerability, a belief in inherent group morality, illusions of unanimity, and self-censorship by members. T GT Fa
141.
Groupthink can be avoided by having the leader strongly advocate a particular course of action. F MN Fa
142.
Managers can avoid groupthink if the assign the role of critical evaluator to each group member or absent themselves from meetings at times to allow free discussion. T MN Fa
143.
Groupthink can be avoided by creating sub-teams to work on the same problem and then sharing their proposed solutions, or by inviting outside experts to observe and react to group process and decisions. T MN Fa
644 144.
Schermerhorn & Wright: Management Managers can avoid groupthink if they have team members discuss issues with outsiders and report back on their reactions, encourage a sharing of viewpoints, or invite outside experts to observe group activities and react to group process. T MN Fa
Creativity and Team Decision Making 145.
As a technique for team decision making, brainstorming rules out criticism and encourages freewheeling and building on one another’s ideas. T KT Fa
146.
The quality of ideas is most the important criterion for brainstorming contributions. F GT Fa
147.
The guidelines for brainstorming include: ruling out all criticism, welcoming “freewheeling,” getting a large quantity of ideas, and encouraging people to build on one another’s ideas. T GT Fa
148.
The nominal group technique of decision making uses a highly structured meeting agenda to allow everyone to contribute ideas without the interference of others’ evaluative comments. T KT Fa
149.
Basic steps for running a nominal group session are: asking participants to work alone in generating ideas, reading ideas aloud in a round-robin fashion, recording all ideas as presented, and using a written voting procedure to rank order alternatives T GT Fa
LEADING HIGH-PERFORMANCE TEAMS (STUDY QUESTION 5) The Team-Building Process 150.
Team building is sequence of planned activities used to gather and analyze data on the functioning of a team and to implement constructive changes to increase the team’s operating effectiveness. T KT Fa
151.
Team building is a multi-step process that involves becoming aware of potential problems, gathering data, analyzing and diagnosing data, developing action plans, implementing action plans, and evaluating results. T GT Fa
152.
Managers can gather data on team functioning by conducting structured or unstructured interviews, administering questionnaires, and having team meetings. T GT Fa
153.
For the diagnostic process to be effective in team building, careful and collaborative assessment of the team’s inputs, processes, and results must be made. T GT Ap
Chapter 16: Teams and Teamwork 154.
645
The ultimate goal of team building is to create more and better teamwork among group members. T GT Ap
Success Factors in Teams 155.
High-performing teams have a clear and elevating goal, competent and committed members who work hard, and high standards of excellence. T GT Fa
156.
High-performing teams have a task-driven and results-oriented structure, a collaborative climate, external support and recognition, and strong and principled leadership. T GT Fa
Team Leadership Challenges 157.
Strong and principled leadership is the real key to developing and sustaining high-performing teams. T GT Fa
158.
Having a high standard of excellence is the real key to developing and sustaining high-performing teams. F GT Fa
159.
Establishing a clear vision, creating change, and unleashing talent are characteristics of successful team leaders. T GT Fa
160.
Successful team leaders establish a clear vision of the future that provides a goal for inspiring hard work and creating a sense of shared purpose in the pursuit of performance excellence. T GT Ap
161.
In helping to create change, successful team leaders are dissatisfied with the status quo and influence team members to be dissatisfied with the status quo as well. They infuse the team with the motivation to change in order to become better. T GT Ap
162.
To unleash talent, successful leaders ensure that the team is staffed with members who have the right skills and abilities, and ensure that team members are highly motivated to use their talents to achieve the group’s performance objectives. T GT Ap
163.
Effective team leaders use team building only when people have considerable difficulty in working together. F GT Ap
164.
Effective team leaders establish a clear vision of the future, help to create change and unleash talent, create supportive climates and empower team members, and use personal example to demonstrate the importance of putting team interest above self-interest. T GT Ap
646
Schermerhorn & Wright: Management
Multiple Choice Questions CHAPTER INTRODUCTION 165.
Which statement regarding teams and teamwork is incorrect? A. Teams are rich in performance potential. B. Teams are complex in the way they work. C. Teams are challenging to lead for high-performance results. D. Many tasks in organizations are beyond the capabilities of people working alone. E. Most workers receive team training. E GT Fa
TEAMS IN ORGANIZATIONS (STUDY QUESTION 1) 166.
With respect to teams and teamwork, the key question for managers and team leaders is: A. How do we make sure that teams and teamwork satisfy team members? B. How do we make sure that teams and teamwork benefit the organization financially? C. How do we make sure that teams and teamwork are utilized throughout the entire organization? D. How do we make sure that teams and teamwork are utilized to everyone’s best advantage? E. How do we make sure that teams and teamwork do not consume excessive amounts of time? D GT Fa
167.
A(n) __________ is a small group of people with complementary skills, who work together to accomplish shared goals while holding themselves mutually accountable for performance results. A. Organization. B. Network. C. Team. D. Gang. E. Agency. C KT Fa
168.
The process of people actively working together in groups to accomplish common goals is called __________. A. Interpersonal interaction. B. Organizational work. C. Camaraderie. D. Teamwork. E. Synergy. D KT Fa
Chapter 16: Teams and Teamwork
647
Teamwork Pros and Cons 169.
The textbook identifies four important team and teamwork roles for managers. Which of the following is NOT one of these roles? A. Supervisor. B. Facilitator. C. Follower. D. Participant. E. Coach. C GT Fa
170.
The textbook identifies four important team and teamwork roles for managers. Which of the following is NOT one of these roles? A. Serving as the appointed head of a work unit. B. Serving as a peer leader and networking hub for a special task force. C. Serving as a helpful contributing member of a project team. D. Serving as an agent of broad-based organizational change. E. Serving as a mentor or sponsor of a problem-solving team. D GT Fa
171.
__________ refers to the presence of “free riders” who slack off because responsibility is diffused in teams and others are present to do the work. A. Social imperfection. B. Poor work ethics. C. Antisynergy. D. Synergy. E. Social loafing. E KT Fa
172.
Jim belongs to a special project group assigned to investigate possible recreation activities for the upcoming summer work program. Jim knows others are present to do his work and is considered to be a “free rider” by other group members. This group has encountered __________. A. Social imperfection. B. Synergy. C. Social loafing. D. Poor work ethics. E. Slow learners. C KT Ap
173.
An important management skill is __________. A. Knowing when a team is the best choice for a task. B. Knowing how to work with and manage a team to accomplish a task. C. Taking action to ensure that social loafing is addressed properly. D. A and B. E. A, B, and C. E GT Fa
648 174.
Schermerhorn & Wright: Management Which one of following items does NOT identify a problem that is commonly encountered in teams? A. Personality conflicts. B. A strong belief in group work. C. Differences in work styles. D. Task ambiguity. E. Poor readiness to work. B GT Fa
Why Meetings Fail 175.
The problems typically associated with meetings include all of the following EXCEPT: A. People arrive late, leave early, and don’t take things seriously. B. The meeting is too short. C. People don’t stay on topic. D. Nothing happens when the meeting is over; no one puts decisions into action. E. Things never get better; the same mistakes are made meeting after meeting. B MN Ap
176.
Which of the following statements accurately describe problems that are typically associated with meetings? A. The meeting is too long. B. The discussion lacks candor; people are unwilling to tell the truth. C. The right information isn’t available, so decisions get postponed. D. A and B. E. A, B, and C. E MN Ap
177.
Meetings can and should be places where __________. A. Information is shared. B. Decisions get made. C. People gain understanding of each other. D. A and B. E. A, B, and C. E GT Fa
Synergy and Usefulness of Teams 178.
When the whole is greater than the sum of the individual parts, a special benefit of teamwork occurs. This special benefit is known as __________. A. A quality circle. B. Group dynamics. C. Team building. D. Cohesiveness. E. Synergy. E KT Fa
Chapter 16: Teams and Teamwork 179.
All of the following are possible positive outcomes of teamwork EXCEPT: A. Better control and work discipline. B. More resources for problem solving. C. Greater commitment to tasks. D. Increased dependency on a strong leader. E. More individual need satisfaction. D GT Fa
180.
All of the following are possible benefits of teams EXCEPT: A. Fostering innovation and creativity. B. Enhancing the effects of an increase in organizational size. C. Improving the quality of decision making. D. Increasing members’ commitment to tasks. E. Raising motivation through collective action. B GT Fa
649
Formal and Informal Groups 181.
Two types of groups are especially important to managers in organizations. These groups are __________. A. Formal and developmental. B. Informal and formal. C. Formal and cohesive. D. Cohesive and emergent. E. Psychological and social. B GT Fa
182.
__________ are part of the formal organizational structure and are created to fulfill a variety of essential operations. A. Formal groups. B. Cohesive groups. C. Emergent groups. D. Psychological groups. E. Social groups. A KT Fa
183.
The text identifies four different labels for work groups. Which of the following is NOT one of these labels? A. Departments. B. Units. C. Teams. D. Divisions. E. Organizations. E GT Fa
650
Schermerhorn & Wright: Management
184.
__________ are the building blocks of organization structures. A. Employees. B. Technologies. C. Formal work groups. D. Managers. E. Leaders. C GT Fa
185.
According to the perspective that organizations are interlocking networks of groups, managers and leaders serve as __________. A. “Linking pins” because each manager or leader acts as a superior in one work group and as a subordinate in the next higher-level one. B. “King pins” because everyone reports to them. C. “Nerve centers” because they control the communication channels. D. “Gatekeepers” because work flows upward and downward through their offices. E. “Group processors” because they make the whole team function properly. A GT Fa
186.
__________ are ones that emerge within organizations from “spontaneous” relationships among people rather than being officially created by the organization to serve an essential purpose. A. Informal groups. B. Psychological groups. C. Aggregate groups. D. Emergent groups. E. Ad hoc groups. A KT Fa
187.
__________ are not recognized on organization charts and are not officially created to serve an organizational purpose. A. Psychological groups. B. Unofficial groups. C. Emergent groups. D. Informal groups. E. Ad hoc groups. D KT Fa
188.
Interest groups, friendship groups, and support groups are examples of __________. A. Formal teams. B. Functional teams. C. Cross-functional groups. D. Self-managing groups. E. Informal groups. E GT Fa
Chapter 16: Teams and Teamwork
651
189.
Informal groups that emerge because workers band together to pursue a common cause or special position are called __________. A. Interest groups. B. Friendship groups. C. Support groups. D. Enabling groups. E. Autonomous groups. A GT Fa
190.
Informal groups that emerge for a wide variety of personal reasons (including shared nonwork interests) are called __________. A. Interest groups. B. Friendship groups. C. Support groups. D. Enabling groups. E. Autonomous groups. B GT Fa
191.
Informal groups that emerge because members basically help one another do their jobs are called __________. A. Interest groups. B. Friendship groups. C. Support groups. D. Enabling groups. E. Autonomous groups. C GT Fa
192.
Which of the following statements does NOT accurately describe an implication of informal groups for organizations? A. Informal groups can have a positive impact on work performance. B. Relationships within informal groups may actually help speed the workflow within the formal structure. C. Informal groups can help satisfy social needs. D. Informal groups can provide security for group members. E. Informal groups perform tasks that are essential to the accomplishments of key operating objectives. E GT Ap
TRENDS IN THE USE OF TEAMS (STUDY QUESTION 2) 193.
The trend toward __________ in organizations is associated with new developments in the use of teams. A. More use of information technology. B. Greater empowerment. C. Downsizing and rightsizing. D. Greater outsourcing. E. More ethical behaviour. B GT Fa
652 194.
Schermerhorn & Wright: Management Which of the follows statements regarding trends in the use of teams is/are correct? A. Committees, project teams, task forces, and cross-functional teams are commonly used in the modern workplace. B. Employee involvement teams enjoy extensive, widespread usage in the modern workplace. C. Developments in information technology are creating opportunities for people to work together in virtual teams. D. A and C. E. A, B, and C. D GT Fa
Committees, Project Teams and Task Forces 195.
A committee is a __________. A. Group of people who meet to work on a specific problem. B. Permanent self-managing team. C. Temporary work team. D. Collection of people working together in a division of labour to accomplish a common purpose. E. Formal team of people working together outside their daily job assignments to pursue a specific purpose. E KT Fa
196.
__________ or __________ bring together people from various parts of an organization to work on common problems, but on a temporary basis. A. Project teams cross-functional teams. B. Committees tasks forces. C. Project teams tasks forces. D. Cross-functional teams virtual forces. E. Employee involvement teams committee. C KT Fa
197.
__________ is a temporary group created to solve a specific problem. A. A task force. B. A functional group. C. A quality control circle. D. An autonomous work group. E. A command group. A KT Fa
198.
__________ is a temporary group created to solve a specific problem. A. A project team. B. A functional group. C. A quality control circle. D. An autonomous work group. E. A command group. A KT Fa
Chapter 16: Teams and Teamwork
653
Cross-Functional Teams 199.
A __________ has members who come from different functional units of the organization. A. Departmental sharing team. B. Cross-functional team. C. Structural team. D. Communication team. E. Organizational involvement committee. B KT Ap
200.
__________ are indispensable to organizations that emphasize adaptation and horizontal integration. A. Departmental sharing teams. B. Structural teams. C. Communication teams. D. Cross-functional teams. E. Organizational involvement committees. D GT Ap
201.
Jim is a shipping clerk who belongs to a team with members representing different functional units. The team meets to share information regarding specific problems facing the whole organization. Jim is a member of a __________. A. Departmental sharing team. B. Structural team. C. Communication team. D. Organizational involvement committee. E. Cross-functional team. E GT Ap
202.
Cross-functional teams are expected to do all of the following EXCEPT: A. Share information. B. Explore new ideas. C. Seek creative solutions. D. Focus on purely functional concerns and demands. E. Think and act cross-functionally. D GT Fa
Employee Involvement Teams 203.
A group of workers who meet on a regular basis outside of their formal assignments, with the goal of applying their expertise and attention to continuous improvement is called a(n) __________. A. Expert team. B. Autonomous work team. C. Employee involvement team. D. Interacting group. E. Product assembly team. C KT Fa
654 204.
Schermerhorn & Wright: Management A __________ is a form of employee involvement team whose members meet regularly to discuss and plan specific ways to improve work quality. A. Quality circle. B. Task force. C. Linking pin team. D. Social loafing group. E. Quantity team. A KT Fa
Virtual Teams 205.
A group of people who work together and solve problems through computer-mediated interactions instead of face-to-face meetings is operating as __________. A. An automated quality circle. B. A virtual team. C. An electronically stimulated group. D. A wide-area network team. E. A human resource team. B KT Fa
206.
A virtual team is also called __________. A. An information technology quality circle. B. A computer-mediated group. C. An electronic group network. D. A and C. E. B and C. B GT Fa
207.
Frank works in the downtown office of a large consulting firm. Joe, Steve, and Michele work in a branch office in a northwest suburb. Joan and David work in a branch office in an eastern suburb. When these people collectively work on problems and try to figure out solutions that they all can accept, they sit down at their computer terminals and communicate with each other through a special software program that guides their discussion. These people are operating as __________. A. A free riding group. B. An informal group. C. A human network. D. A virtual team. E. Task-focused problem solvers. D GT Ap
Chapter 16: Teams and Teamwork
655
208.
Which of the following does NOT accurately describe virtual teams? A. Team members from geographically dispersed locations can deal with issues in a timeefficient fashion. B. Because of information technology, virtual teams provide a problem-free approach to dealing with issues among team members at geographically dispersed locations. C. Interpersonal difficulties that might occur in face-to-face meetings could be minimized or eliminated. D. Working relationships can become depersonalized. E. Advantages of face-to-face meetings are lost. B GT Ap
209.
Which of the following statements accurately describe important ingredients of success for virtual teams? A. Virtual teams should begin with social messaging that allows members to exchange information about themselves to personalize the process. B. Virtual team members should be assigned clear roles so they can focus while working alone and also know what others are doing. C. Virtual team members must join and engage the team with positive attitudes that support a willingness to work hard to meet team goals. D. All of the above. E. None of the above. D GT Fa
Self-Managing Work Teams 210.
In a growing number of organizations, the functional team –– consisting of a first-level supervisor and her or his subordinates –– is bring replaced by __________ A. Informal task structures. B. Electronic networks. C. High command structures. D. Self-managing teams. E. Manager involvement teams. D GT Fa
211.
__________ have the authority to make decisions about how they share and complete their work. A. Informal task structures. B. Autonomous friendship groups. C. Self-managing teams. D. Integrative command structures. E. Manager involvement teams. C KT Fa
656
Schermerhorn & Wright: Management
212.
__________ are teams of workers whose jobs have been redesigned to create a high degree of task interdependence and who have been give the authority to make many decisions about how they do the required work. A. Informal task structures. B. Autonomous friendship groups. C. Self-managing teams. D. Integrative command structures. E. Manager involvement teams. C KT Fa
213.
Which of the following statements does NOT accurately describe self-managing teams? A. Self-managing teams are authorized to make decisions about how they share and perform the required work. B. Self-managing teams operate with participative decision making, shared tasks, and responsibility for many managerial tasks. C. Self-managing teams never have the authority to hire or fire team members. D. Self-management responsibilities typically include planning and scheduling work as well training members in various tasks. E. Self-managing teams are expected to help enhance performance, decrease costs, and improve morale. C GT Fa
214.
Self-managing teams possess all of the following characteristics EXCEPT: A. Members train one another to develop multiple job skills. B. Members evaluate one another’s performance contributions. C. Members have discretion in scheduling work within the team. D. Members are held individually accountable for performance results. E. Members have discretion in distributing tasks within the team. D GT Fa
HOW TEAMS WORK (STUDY QUESTION 3) 215.
In considering the results that any team must achieve, __________ means that a work group or team is expected to transform resource inputs into product outputs that have some value for the organization. A. Performance. B. Cohesion. C. Commitment. D. Satisfaction. E. Future viability. A GT Fa
216.
In considering the results that any team must achieve, __________ means that members should experience satisfaction from performance results and their participation in the process. A. Performance. B. Gratification. C. Commitment. D. Satisfaction. E. Future viability. D GT Fa
Chapter 16: Teams and Teamwork 217.
657
In considering the results that any team must achieve, __________ means the team should have a social fabric and work climate that makes members willing and able to work well together in the future. A. Performance. B. Cohesion. C. Commitment. D. Satisfaction. E. Future viability. E GT Fa
What Is an Effective Team? 218.
An effective team is defined as one that __________. A. Achieves and maintains high levels of task performance. B. Achieves and maintains member satisfaction. C. Remains viable for the future. D. All of the above. E. None of the above. D KT Fa
219.
Which one of the following statements does NOT accurately describe how teams work as open systems? A. As open systems, teams transform resource inputs (such as people and ideas) into outputs (such as task performance). B. Task performance, member satisfaction, and team viability are output measures of team effectiveness. C. Member satisfaction is not crucial for maintaining long-term performance viability. D. Group process represents the throughputs in how teams work. E. Inputs to group process include the organizational setting, the nature of tasks, team size, and membership characteristics. C GT Fa
220.
Which input factor to group process concerns providing support in the form of information, material resources, technology, spatial arrangements, organization structures, and rewards? A. Organizational setting. B. Nature of the tasks. C. Team size. D. Membership characteristics. E. Group norms. A GT Fa
221.
In comparison to simple tasks, complex tasks require more information exchange and more intense interactions. This fact reflects which input factor of group process? A. The nature of tasks. B. Membership characteristics. C. The organizational setting. D. The type of the group. E. The cohesiveness of the group. A GT Fa
658
Schermerhorn & Wright: Management
222.
The number and complexity of interactions can make teams increasingly difficult to manage as they grow in size. The threshold point at which team size becomes a significant input factor in effective group process is __________. A. Four or five team members. B. Six or seven team members. C. Eight or nine team members. D. Ten or eleven team members. E. Twelve team members. B GT Fa
223.
Team should have members with the right skills mix to master and perform tasks well, and the values and personalities that are sufficiently compatible for everyone to work together. These attributes refer to the input of __________ in the open-systems model of team effectiveness. A. The nature of tasks. B. Membership characteristics. C. Group size. D. Organizational setting. E. Spatial arrangements. B GT Fa
224.
__________ refer(s) to how the members of a team actually work together as they transform inputs into outputs. A. Working relationships. B. Interpersonal relationships. C. Group process. D. Job specifications. E. Team responsibilities. C KT Fa
225.
Which of the following statements does NOT accurately describe group process? A. Group process includes how well team members communicate, make decisions, and handle conflicts. B. When group process fails, team effectiveness can suffer. C. Since group process is essential to team effectiveness, it guarantees team success. D. Teams must have the resource inputs needed to deal best with the task at hand. E. The organizational setting, nature of the task, team size, and membership characteristics are key inputs to group process. C GT Fa
226.
Which of the following accurately describes the Team Effectiveness Equation? A. Team effectiveness = quality of input + process gains. B. Team effectiveness = quality of input - process losses. C. Team effectiveness = process gains- process losses. D. Team effectiveness = quality of input (process gains- process losses). E. Team effectiveness = quality of input + (process gains- process losses). E GT Fa
Chapter 16: Teams and Teamwork
659
227.
__________ can present significant group process challenges because of different values, personalities, experiences, demographics, and cultures among the members. A. Team effectiveness. B. Team diversity. C. Team cohesiveness. D. Team size. E. Team norms. B GT Fa
228.
The more __________ the team, the easier it is to manage team member relationships. A. Normative. B. Descriptive. C. Task –oriented. D. Homogeneous. E. Heterogeneous. D GT Fa
229.
The more __________ the team, the greater the variety of available ideas, perspectives, and experiences that can add value to problem solving and task performance. A. Normative. B. Descriptive. C. Task–oriented. D. Homogeneous. E. Heterogeneous. E GT Fa
230.
The group process challenge is to __________ the advantages and __________ the potential disadvantages of team diversity. A. Minimize minimize. B. Minimize maximize. C. Maximize minimize. D. Maximize maximize. E. None of the above is correct. C GT Fa
Stages of Team Development 231.
The phases or stages in the life cycle of any team are __________. A. Forming, storming, norming, performing, and adjourning. B. Introduction, growth, maturity, and decline. C. Forming, norming, performing, and satisfying. D. Inputs, throughputs, and outputs. E. Problem definition, problem analysis, solution generation, solution implementation, and evaluation. A GT Fa
660
Schermerhorn & Wright: Management
232.
In the life cycle of a team, the initial task orientation and interpersonal testing of individual members occurs in the ___________ stage. A. Forming. B. Storming. C. Norming. D. Performing. E. Adjourning. A GT Fa
233.
In the life cycle of a team, conflicts over tasks and ways of operating as a team occur in the ___________ stage. A. Forming. B. Storming. C. Norming. D. Performing. E. Adjourning. B GT Fa
234.
In the life cycle of a team, consolidation around task and operating agendas occurs in the ___________ stage. A. Forming. B. Storming. C. Norming. D. Performing. E. Adjourning. C GT Fa
235.
In the life cycle of a team, teamwork and focused task performance occur in the ___________ stage. A. Forming. B. Storming. C. Norming. D. Performing. E. Adjourning. D GT Fa
236.
In the life cycle of a team, task accomplishment and eventual disengagement occur in the ___________ stage. A. Forming. B. Storming. C. Norming. D. Performing. E. Adjourning. E GT Fa
Chapter 16: Teams and Teamwork
661
237.
Which statement about the forming stage of the team development life cycle is NOT correct? A. In the forming stage, the primary emphasis is on identification of team boundaries and learning how others perceive the team’s task. B. In the forming stage, coalitions or cliques may form as subgroups emerge. C. Dependency on powerful members and previous experience with team members in other situations impact the way the team forms. D. Members’ own impressions of organizational philosophies, goals, and policies may affect relationships. E. Difficulties in the forming stage tend to be greater in more culturally and demographically diverse teams. B GT Fa
238.
The storming stage of the team life cycle is characterized by all of the following EXCEPT: A. Periods of hostility and infighting occur. B. Members clarify their understanding of each other’s interpersonal styles. C. Pressures occur from outside the team for resolving team differences. D. Attention shifts toward obstacles standing in the way of goal accomplishment. E. Emergence of coalitions and cliques based on areas of agreement and disagreement. C GT Fa
239.
The norming stage of the team life cycle is characterized by __________. A. A period of high emotionality. B. The identification of team boundaries and team roles. C. Efforts to find ways to accomplish group goals while also satisfying individual needs. D. The team becoming a coordinated work unit with shared rules of conduct. E. The ability to handle membership disagreements in creative ways. D GT Fa
240.
During the __________ stage of the team life cycle, total integration of team members occurs, and they creatively deal with complex tasks and interpersonal conflicts. A. Forming. B. Storming. C. Norming. D. Performing. E. Adjourning. D GT Fa
241.
A team that has achieved total integration at the performing stage of team development, will score high on all of the following criteria EXCEPT: A. Trust among members. B. Feedback mechanisms. C. Open communications. D. Approach to decisions. E. Leadership concentration. E GT Fa
662
Schermerhorn & Wright: Management
242.
A team that has achieved total integration at the performing stage of team development, will score high on all of the following criteria EXCEPT: A. Acceptance of goals. B. Valuing diversity. C. Member cohesiveness. D. Support for each other. E. Relationship norms. E GT Fa
243.
In the __________ stage of the team life cycle, the team should ideally disband with the sense that important goals have been accomplished. A. Forming. B. Storming. C. Norming. D. Performing. E. Adjourning. E GT Fa
Norms and Cohesiveness 244.
“Rules” or “standards” that guide the behaviour of team members are called __________. A. Cohesion factors. B. Required behaviours. C. Task guides. D. Maintenance behaviours. E. Norms. E KT Fa
245.
Which action is unlikely to occur when a team member violates a team norm? A. The person violating the norm may be reprimanded. B. The person violating the norm may be rewarded. C. The team may impose various sanctions on the violator. D. The offending member may be expelled from the team. E. The offending member may ostracized by the other team members. B GT Ap
246.
A __________ defines the level of work effort and performance that team members are expected to contribute. A. Team norm. B. Performance norm. C. Work norm. D. Work/effort norm. E. Productivity norm. B GT Fa
Chapter 16: Teams and Teamwork
663
247.
A _________is being communicated when a new employee is told by his or her coworkers that “everyone around here is continually on the lookout for better ways of doing things.” A. Team performance norm. B. Performance valence. C. Halo effect. D. Performance forecast. E. Threatening message. A GT Ap
248.
To build positive team norms, a leader can do all of the following EXCEPT: A. Control results by performance reviews and regular feedback. B. Train and orient new members to adopt desired behaviours. C. Take over certain decision-making functions from the group. D. Hold regular meetings to discuss team progress and ways of improving. E. Act as a role model. C GT Fa
249.
The degree to which members are attracted to and motivated to remain part of the team is called __________. A. Groupthink. B. Norm intensity. C. System interaction. D. Cohesiveness. E. Social behaviour. D KT Fa
250.
In terms of team productivity, the best-case scenario of a work team’s performance norms and cohesiveness occurs with __________ performance norms and __________ team cohesiveness. A. High … high. B. Positive … high. C. Negative … high. D. Negative … low. E. Positive … low. B GT Fa
251.
From a manager’s perspective, the worst-case scenario of a work team’s performance norms and cohesiveness occurs with __________ performance norms and __________ team cohesiveness. A. High…high. B. High…low. C. Negative…high. D. Negative…low. E. Positive…low. C GT Fa
664
Schermerhorn & Wright: Management
252.
In order to increase cohesion, a manager can do all of the following EXCEPT: A. Induce agreement on team goals. B. Increase membership heterogeneity. C. Increase interactions among members. D. Reward team rather than individual results. E. Provide physical isolation from other teams. B GT Fa
253.
Which of the following is NOT something a manager can do to increase team cohesion? A. Increase membership homogeneity. B. Decrease team size. C. Introduce competition with other teams. D. Reward team rather than individual results. E. Encourage direct physical contact with other teams. E GT Fa
Task and Maintenance Needs 254.
Two types of activities are essential if team members are to work well together over time. These two activities are __________. A. Task and maintenance activities. B. Norm and cohesion building activities. C. Effectiveness and efficiency training activities. D. Promoting interactions and sentiments. E. Developing emergent and required behaviours. A GT Fa
255.
Activities that contribute directly to the team’s performance purpose are called __________. A. Maintenance activities. B. Group dynamics. C. Required behaviours. D. Group process activities. E. Task activities. E KT Fa
256.
Efforts to support the emotional life of the team as an ongoing social system are __________. A. Affective behaviours. B. Affiliation activities. C. Maintenance activities. D. Support services. E. Cohesion activities. C KT Fa
Chapter 16: Teams and Teamwork
665
257.
__________ makes every team member continually responsible for both recognizing when task or maintenance activities are needed and taking actions to provide them. A. Team cohesiveness. B. Distributed leadership. C. Groupthink. D. Consensus. E. An interacting group pattern. B GT Fa
258.
Which statement about task and maintenance activities is NOT accurate? A. The responsibility for task and maintenance activities belongs to the manager alone. B. Any member can assist a group by taking actions that help satisfy task and maintenance needs. C. Without relevant task activities, groups will find it difficult to accomplish their objectives. D. Task and maintenance activities are leadership skills. E. Distributed leadership puts responsibility for group maintenance on all members. A GT Fa
259.
Team effectiveness is reduced by self-serving, disruptive activities such as __________. A. Being aggressive, blocking, competing, or withdrawing. B. Being self-confessing or seeking sympathy. C. Horsing around and seeking recognition. D. All of the above. E. None of the above. D GT Fa
Communication Networks 260.
A __________ allows all members to communicate directly with each other. A. Centralized communication network. B. Neutral communication network. C. Decentralized communication network. D. Restricted communication network. E. Standard communication network. C KT Fa
261.
In a __________, communication flows only between individual members and a hub or central point. A. Centralized communication network. B. Neutral communication network. C. Decentralized communication network. D. Restricted communication network. E. Standard communication network. A KT Fa
666
Schermerhorn & Wright: Management
262.
Which communication network seems to work best on simple tasks that require little creativity, information processing, and problem solving? A. Decentralized communication network. B. Centralized communication network. C. Neutral communication network. D. Restricted communication network. E. Standard communication network. B GT Fa
263.
A __________ seems to work best on complex tasks that require intense interaction and information sharing. A. Decentralized communication network. B. Centralized communication network. C. Neutral communication network. D. Restricted communication network. E. Standard communication network. A GT Fa
264.
Which statement accurately describes the interaction patterns and communications networks used by teams? A. Interacting groups use a decentralized communication network that reflects high interdependency around a common task. B. Coacting groups use a restricted communication network to deal more effectively with subgroup disagreements. C. Counteracting groups use a centralized communication network to coordinate independent individual efforts on behalf of a common task. D. All of the above. E. None of the above. A GT Fa
DECISION MAKING IN TEAMS (STUDY QUESTION 4) 265.
__________ is the process of making choices among alternative courses of action. A. Problem solving. B. Decision making. C. Groupthink. D. Group cohesion E. High-performance leadership. B KT Fa
266.
As one of the most important group processes, __________ is complicated by the different ways in which teams can go about doing it. A. Organization design. B. Decision making. C. Groupthink. D. Group cohesion E. High-performance leadership. B GT Fa
Chapter 16: Teams and Teamwork
667
How Teams Make Decisions 267.
Decision by __________ occurs when one idea after another is suggested without discussing them, and then the team finally accepts an idea without any critical evaluation. A. Majority rule. B. Lack of response. C. Authority rule. D. Consensus. E. Minority rule. B GT Fa
268.
Decision by __________ is being used when a leader, manager, or committee head makes a decision for the team. A. Majority rule. B. Lack of response. C. Authority rule. D. Consensus. E. Minority rule. C GT Fa
269.
Decision by __________ is being used when two or three people can dominate the majority or “railroad” the majority into agreeing to a solution. A. Majority rule. B. Lack of response. C. Authority rule. D. Consensus. E. Minority rule. E GT Fa
270.
When formal voting or polling takes place, with the objective of determining which idea is favoured by more than half the team members, the team is making a decision by _________. A. Majority rule. B. Lack of response. C. Authority rule. D. Consensus. E. Minority rule. A GT Fa
271.
Teams will make decisions by __________ when they argue, engage in reasonable conflict, respect one another, and yet make a decision that does not require unanimity but can be supported by all team members. A. Consensus. B. Unanimity. C. Majority rule. D. Minority rule. E. Lack of response. A GT Fa
668 272.
Schermerhorn & Wright: Management Teams will make decisions by __________ when all team members agree on a course of action. A. Consensus. B. Unanimity. C. Majority rule. D. Minority rule. E. Lack of response. B GT Fa
Assets and Liabilities of Group Decisions 273.
A very important __________ is the ability to help a team choose the best decision method for the task at hand. A. Team member skill. B. Team leadership skill. C. Team building skill. D. Groupthink skill. E. Group cohesion skill. B GT Fa
274.
To be effective in deciding whether to use individual, consultative, or group decision methods for a particular situation, team leaders must __________. A. Understand the assets and liabilities of group decision making. B. Have competent and motivated group members. C. Know how to solve problems better than any of the team members. D. All of the above. E. None of the above. A GT Fa
275.
Potential advantages of group decision making include all of the following EXCEPT: A. Group decision making brings more information, knowledge, and expertise to bear on problems. B. Group decision making expands the number of alternatives that are considered. C. Group decision making improves members’ understanding and acceptance of the final decision. D. Group decision making increases members’ commitment to follow through on implementing the decision. E. Group decision making promotes decisions favoured by a small but powerful coalition. E GT Fa
276.
Potential disadvantages of group decision making include all of the following EXCEPT: A. Members may encounter social pressure to conform. B. Individual members may feel intimidated. C. Minority domination may occur . D. Tunnel vision can be avoided. E. Decision making takes longer and can become very costly. D GT Fa
Chapter 16: Teams and Teamwork
669
Groupthink 277.
A tendency for highly cohesive groups to lose their evaluative capabilities is called __________. A. Synergy. B. Norm overload. C. Dysfunctionalism. D. Group stasis. E. Groupthink. E KT Fa
278.
All of the following are symptoms of groupthink EXCEPT: A. Rationalizing unpleasant and disconfirming data. B. Stereotyping competitors as weak, evil, and/or stupid. C. Protecting members from hearing disturbing ideas or outside viewpoints. D. Promoting autonomy within the group. E. Applying direct pressure to deviants to conform to group wishes. D GT Fa
279.
All of the following are symptoms of groupthink EXCEPT: A. Illusions of invulnerability. B. Belief in inherent group morality. C. Illusions of unanimity D. Self-censorship by members. E. Accepting unpleasant and disconfirming data. E GT Fa
280.
Sharon belongs to a highly cohesive group. The group makes decisions about how profits from the annual fundraiser will be spent. However, Sharon refuses to communicate her personal concerns to the entire group. This is an example of which symptom of groupthink? A. Stereotyping competitors as stupid. B. Mind guarding. C. Applying direct pressure to deviants to conform to the group. D. Self-censorship by members. E. Illusions of unanimity. D GT Ap
281.
Groupthink can be avoided by doing all of the following EXCEPT: A. Assigning the role of critical evaluator to each group member. B. Having the leader strongly advocate a particular course of action. C. Creating sub-teams to work on the same problem and then sharing their proposed solutions. D. Inviting outside experts to observe and react to group process and decisions. E. Assigning one member to play a “devil’s advocate” role at each team meeting. B MN Fa
670 282.
Schermerhorn & Wright: Management Managers can avoid groupthink if they do all of the following EXCEPT: A. Have team members discuss issues with outsiders and report back on their reactions. B. Encourage a sharing of viewpoints. C. Absent themselves from meetings at times to allow free discussion. D. Create conflict among groups to increase creative thinking E. Invite outside experts to observe group activities and react to group process. D MN Fa
Creativity and Team Decision Making 283.
The team decision-making technique that rules out criticism and encourages freewheeling and building on one another’s ideas is known as __________. A. Quality circles. B. Nominal team building. C. Brainstorming. D. Groupthink. E. Creativity. C KT Fa
284.
The guidelines for brainstorming include all of the following EXCEPT: A. All criticism is ruled out. B. “Freewheeling” is welcomed. C. Quantity of ideas is important. D. Quality of ideas is important E. Building on one another’s ideas is encouraged. D GT Fa
285.
__________ uses a highly structured meeting agenda to allow everyone to contribute ideas without the interference of evaluative comments by others. A. A quality circle. B. The nominal group technique. C. Brainstorming. D. Groupthink. E. Conflict management. B KT Fa
286.
Which of the following is NOT a basic step for running a nominal group session? A. Participants are asked to work alone. B. Ideas are read aloud in a round-robin fashion. C. All ideas are recorded as presented. D. A written voting procedure is used to rank order alternatives E. Ideas are expressed and evaluative comments are made. E GT Fa
Chapter 16: Teams and Teamwork
671
LEADING HIGH-PERFORMANCE TEAMS (STUDY QUESTION 5) The Team-Building Process 287.
__________ is sequence of planned activities used to gather and analyze data on the functioning of a team and to implement constructive changes to increase the team’s operating effectiveness. A. Team cohesiveness. B. Team building. C. Team planning. D. Leadership development. E. Virtual team creation. B KT Fa
288.
Team building is a multi-step process. Which of the following is NOT a recommended teambuilding step? A. Become aware of potential problems. B. Develop individual competitive goals. C. Gather and analyze data. D. Develop action plans. E. Evaluate results. B GT Fa
289.
Managers can gather data on team functioning by all of the following methods EXCEPT: A. Conducting structured interviews. B. Administering questionnaires. C. Conducting unstructured interviews. D. Having team meetings. E. Reading the employee handbook. E GT Fa
290.
For the __________ process to be effective in team building, careful and collaborative assessment of the team’s inputs, processes, and results must occur. A. Leadership. B. Conflict resolution. C. Diagnostic. D. Negotiation. E. Employee selection. C GT Ap
291.
The ultimate goal of __________ is to create more and better teamwork among group members. A. Formal groups. B. Informal groups. C. Team building. D. Leadership training. E. Problem solving. C GT Ap
672
Schermerhorn & Wright: Management
Success Factors in Teams 292.
High-performance teams generally share several characteristics. Which of the following is NOT one of these commonly shared characteristics? A. A clear and elevating goal. B. A task-driven and results-oriented structure. C. Competent and committed members who work hard. D. A competitive internal organizational climate. E. Strong and principled leadership. D GT Fa
293.
Which one of the following is NOT a characteristic of high-performing teams? A. A clear and elevating goal. B. Competent and committed members who work hard. C. High standards of excellence. D. A conflict intense environment. E. External support and recognition. D GT Fa
294.
High-performing teams share certain characteristics. Which of the following is NOT one of these characteristics? A. A task-driven, results-oriented structure. B. A high risk strategy. C. A collaborative climate. D. External support and recognition. E. Strong and principled leadership. B GT Fa
Team Leadership Challenges 295.
__________ is the real key to developing and sustaining high-performing teams. A. A clear and elevating goal. B. High standards of excellence. C. A task-driven, results-oriented structure. D. A collaborative climate. E. Strong and principled leadership. E GT Fa
296.
Establishing a clear vision, creating change, and unleashing talent are characteristics of __________. A. Informal groups. B. Human resource professionals. C. Functional managers. D. Successful team leaders. E. General managers. D GT Fa
Chapter 16: Teams and Teamwork
673
297.
Which of the following statements accurately describe an implication of successful team leaders with respect to establishing a clear vision of the future? A. The vision provides a goal that inspires hard work. B. The vision creates a sense of shared purpose. C. The vision serves as a goal in the pursuit of performance excellence. D. A and C. E. A, B, and C. E GT Ap
298.
Which of the following statements accurately describe what successful team leaders do to help create change? A. Successful leaders are dissatisfied with the status quo. B. Successful leaders influence team members to be dissatisfied with the status quo. C. Successful leaders infuse the team with the motivation to change in order to become better. D. All of the above. E. None of the above. D GT Ap
299.
Which of the following statements accurately describe what successful team leaders do to unleash talent? A. Successful leaders ensure that the team is staffed with members who have the right skills and abilities. B. Successful leaders ensure team members have a goal of performance excellence. C. Successful leaders ensure that team members are highly motivated to use their talents to achieve the group’s performance objectives. D. A and C. E. A, B, and C. D GT Ap
300.
Effective team leaders share all of the following characteristics EXCEPT: A. They use team building only when people have considerable difficulty in working together. B. They establish a clear vision of the future. C. They help to create change and unleash talent. D. They create supportive climates and empower team members. E. They use personal example to demonstrate the importance of putting team interest above selfinterest. A GT Ap
Essay Questions 301.
How do teams contribute to organizations? Suggested Answer: Teams can be a source of synergy for organizations. Team members working together can accomplish more on behalf of the organization than the individual members can working separately. Teams also benefit organizations by: increasing resources for problem solving; fostering creativity and innovation; improving the quality of decision making; enhancing
674
Schermerhorn & Wright: Management members’ commitments to tasks; raising motivation through collective action; helping with control and work discipline; and satisfying individual needs as organizations grow in size.
302.
Identify and describe the basic types of teams that exist within organizations. Suggested Answer: The basic types of teams that are used in organizations include committees, project teams and task forces, cross-functional teams, employee involvement teams, virtual teams, and selfmanaging work teams. Each of these teams is described below:
303.
•
A committee brings people together outside of their daily job assignments to work in a small team for a specific purpose. The task agenda is typically narrow, focused, and ongoing A committee’s membership may change over time even as the committee remains in existence.
•
Project teams or task forces bring together people from various parts of an organization to work on common problems, but on a temporary rather than permanent basis. Official tasks are very specific and time defined. A task force or project team disbands once the stated purpose has been accomplished
•
A cross-functional team has members who come from different functional units to work on a specific problem or task, and to do so with the needs of the whole organization in mind. These teams share information, explore new ideas, seek creative solutions, meet project deadlines, and are not limited by purely functional concerns and demands.
•
Employee involvement teams are groups of workers who meet on a regular basis outside of their formal assignments, with the goal of applying their expertise and attention to continuous improvement.
•
Virtual teams are teams of people who work together and solve problems through largely computer-mediated rather than face-to-face interactions.
•
Self-managing work teams are teams of workers whose jobs have been redesigned to create a high degree of task interdependence, and who have been given authority to make many decisions about how they do the required work. The self-management responsibilities include planning and scheduling work, training members in various tasks, sharing tasks, meeting performance goals, ensuring high quality, solving day-to-day operating problems and, in some cases, “hiring” and “firing” team members.
Briefly describe the stages of group/team development. Think of a group or team in which you have held or currently hold membership. Explain how the stages of group/team development can be applied to this example group or team. Suggested Answer: The stages of team development are forming, storming, norming, performing, and adjourning. Each of these stages is described briefly below: •
The forming stage is a stage of initial orientation and interpersonal testing. Members begin to identify with other members and the team itself. Members are concerned about
Chapter 16: Teams and Teamwork
675
getting acquainted, establishing interpersonal relationships, identifying acceptable behaviour, and learning how others perceive the team’s task. •
The storming stage is a stage of conflict over tasks, interpersonal concerns, and ways of operating as a team. Members may become highly emotional and tensions may emerge over task and interpersonal concerns. Task agendas become clarified and members begin to understand one another’s interpersonal styles. Efforts are made to find ways to meet team goals while also satisfying individual needs.
•
The norming stage is a stage of consolidation around task and operating agendas. Members of the team begin to become coordinated as a working unit and tend to operate with shared rules of conduct. The team feels a sense of leadership and each member starts to play useful roles. Harmony and cooperation are emphasized, but minority viewpoints may be discouraged. Members are likely to develop initial feelings of closeness, a division of labour, and a sense of shared expectations.
•
The performing stage is a stage of true teamwork and focused task performance. The team becomes mature, organized, and well functioning. Members perform complex tasks and deal with conflict in creative ways. The team operates with a clear and stable structure, and members are motivated by team goals.
•
The adjourning stage is a stage of preparation for eventual disengagement. Members prepare to achieve closure and disband. Adjourning is especially common for temporary teams that operate in the form of task forces and projects teams. Ideally, the team disbands with a desire to work together again in the future should the opportunity arise.
The students should compare their group/team experiences to the information contained in the preceding framework.
304.
Describe the different methods that teams might use to make decisions. Suggested Answer: Teams make decisions by at least six different methods: lack of response, authority rule, minority rule, majority rule, consensus, and unanimity. In decision by lack of response, one idea after another is suggested without any discussion taking place. In decision by authority rule, the leader, manager, committee head, or some other authority figure makes a decision for the team. In decision by minority rule, two or three people are able to dominate or “railroad” the team into making a mutually agreeable decision. In decision by majority rule, formal voting may take place, or members may be polled to find the majority viewpoint. In decision by consensus, discussion leads to one alternative being favoured by most members and the other members agreeing to support it. In decision by unanimity, all team members agree on the course of action to be taken.
305.
What is an effective team? How can team building increase team effectiveness? How can leadership help increase team effectiveness?
676
Schermerhorn & Wright: Management Suggested Answer: An effective team is one that achieves and maintains high levels of both task performance and member satisfaction, and retains its viability for the future. Team building is a sequence of planned activities to gather and analyze data on the functioning of a team and to implement constructive changes to increase its operating effectiveness. Team building fosters the development of high-performing teams with the following characteristics: a clear and elevating goal; a task-driven and results-oriented structure; competent and committed members who work hard; a collaborative climate; high standards of excellence; external support and recognition; and strong and principled leadership. In addition to strong and principled leadership, effective leaders of high-performing teams act to establish a clear vision of the future, create change, and unleash talent.
Chapter 17:
COMMUNICATION AND INTERPERSONAL SKILLS True/False Questions CHAPTER INTRODUCTION 1.
The ability to communicate well both orally and in writing is a critical managerial skill and a foundation of effective leadership. T GT Fa
2.
Communication enables people to exchange and share information with each other. T GT Fa
3.
Communication permits people to influence one another’s attitudes, behaviours, and understandings. T GT Fa
4.
Communication enables people to establish and maintain interpersonal relationships. T GT Fa
5.
Communication is essential for listening to others, handling conflict, and negotiating successfully. T GT Fa
6.
Communication is essential for gaining the information needed to lead successfully and create an inspirational workplace. T GT Fa
THE COMMUNICATION PROCESS (STUDY QUESTION 1) 7.
Communication is an interpersonal process of sending and receiving symbols with messages attached to them. T KT Fa
8.
In the communication process, the messenger is the person who is responsible for encoding an intended message into meaningful verbal and nonverbal symbols. F GT Fa
677
678
Schermerhorn & Wright: Management
9.
In the communication process, the message is sent through a communication channel to a receiver, who then decodes or interprets its meaning. T GT Fa
10.
When present, feedback reverses the communication process and conveys the receiver’s response to the sender. T GT Fa
What Is Effective Communication? 11.
Effective communication occurs when the sender’s intended message and the receiver’s interpreted meaning of that message are identical. T KT Fa
12.
Effective communication is the same as efficient communication. F KT Fa
13.
Effective communication occurs when minimal time is spent in the communication process. F KT Fa
14.
Efficient communication occurs at minimum cost in terms of resources expended. T KT Fa
15.
Efficient communication occurs in one-way, rather than two-way, communication. F KT Fa
16.
Efficient communication means that all noise has been eliminated from the communication process. F KT Fa
Persuasion and Credibility in Communication 17.
Persuasion is getting someone else to support the message being presented. T KT Fa
18.
Communication is not always about sharing information; sometimes it is about influencing another person in a desired way. T GT Fa
19.
Persuasion occurs very frequently in horizontal structures and within the context of empowerment. T GT Fa
20.
The personal power bases of expertise and reference are essential for persuasion. T GT Fa
21.
The power bases of rewards, coercion, and legitimacy are crucial for persuasion. F GT Fa
Chapter 17: Communication and Interpersonal Skills 22.
679
Credibility refers to trust, respect, and integrity in the eyes of others. T
KT
Fa
23.
Building credibility through relationships requires knowledge about the issue in question and/or a successful prior track record at dealing with similar issues. F GT Fa
24.
Building credibility through expertise requires having a good working relationship with the person to be persuaded. F GT Fa
Communication Barriers 25.
Anything that interferes with the effectiveness of the communication process is noise. T KT Fa
26.
The medium through which a message is conveyed from sender to receiver is called a communication channel. T KT Fa
27.
Becoming effective in written and oral communications requires skill, takes practice and hard work, and is essential for managers T GT Ap
28.
Guidelines for making a successful oral presentation include setting the right tone, supporting the points made in the presentation, using good visual aids, and checking the technology to be used. T MN Fa
29.
Guidelines for making a successful oral presentation include being audience centered and making eye contact, being on time, knowing what you want to say, and accenting the presentation. T MN Fa
30.
Nonverbal communication takes place through such things as hand movements, body posture, eye contact, and the use of interpersonal space. T KT Fa
31.
Nonverbal communication includes body posture and eye contact as well as facial expressions and gestures. T GT Fa
32.
Nonverbal communication can be transmitted without the sender knowing or desiring it, or it can be used intentionally to enhance oral communication. T GT Fa
33.
A mixed message occurs when a person’s words communicate one message while his/her actions, body language, appearance, or situational use of interpersonal space communicate something else. T KT Fa
680
Schermerhorn & Wright: Management
34.
A mixed message occurs when a person uses both written and oral communication channels at the same time. F KT Ap
35.
A mixed message occurs when a person gives the original message in written form and receives the feedback orally. F KT Ap
36.
A mixed message occurs when the person sending the message is from a different culture than the person receiving the message. F KT Ap
37.
Telephone interruptions, drop-in visitors, and lack of privacy are examples of filtering effects that can interfere with the effectiveness of a communication attempt. F GT Fa
38.
Physical distractions seldom interfere with the effectiveness of communication. F GT Fa
39.
Physical distractions create information overload but their impact can be minimized by setting priorities and planning. T GT Fa
40.
Selective perception is the intentional distortion of information to make it appear favourable to the recipient. F KT Fa
41.
Status effects on communication often cause subordinates to bias their communication with higher-level managers. T GT Fa
42.
Status effects on communication occur less frequently in hierarchical organizations because managers and employees know their places. F GT Fa
43.
Status effects on communication are seldom serious because they result from managers having to listen too much to employees. F GT Fa
IMPROVING COMMUNICATION (STUDY QUESTION 2) 44.
Communication barriers can be overcome, perceptual distortions can be minimized, and the communication process can be improved by engaging in active listening, providing constructive feedback, opening communication channels, and using space and technology. T GT Fa
Chapter 17: Communication and Interpersonal Skills
681
Active Listening 45.
The process of helping the source of a message say what he or she really means is called reflective communication. F KT Fa
46.
The process of helping the source of a message say what he or she really means is called active listening. T KT Fa
47.
Active listening entails listening for message content, listening for feelings, responding to feelings, noting all cues, and paraphrasing and restating. T GT Fa
48.
An active listener tries to hear exactly what content is being conveyed in the message. T GT Fa
49.
An active listener tries to identify how the source feels about the content of the message. T GT Fa
50.
An active listener lets the source know that her or his feelings are being recognized. T GT Fa
51.
An active listener is sensitive to nonverbal and verbal messages, and is alert for mixed messages. T GT Fa
52.
An active listener restates to the source what he or she hears. T GT Fa
53.
There are ten rules for good listening cited in the textbook, but only nine of the rules are unique. “Ask questions” is the rule that appears twice because of its importance. F MN Fa
Constructive Feedback 54.
Feedback is the process of telling other people how you react to something they did or said T KT Fa
55.
Feedback is often effective when used with a threatening edge that demonstrates who is in charge. F KT Fa
56.
When poorly done, feedback can be threatening to the recipient and cause resentment. T GT Fa
57.
When properly done, feedback can be listened to, accepted, and used to good advantage by the receiver. T GT Fa
682
Schermerhorn & Wright: Management
58.
Constructive feedback should be: based on trust, specific rather than general, given at an appropriate time, something the receiver can act on, and given in small doses. T GT Fa
59.
Constructive feedback should be given directly and with real feeling, based on trust between you and the receiver. T GT Fa
60.
Constructive feedback should be general rather than specific; generalities should be used to make your points so the receiver is not overwhelmed with details. F GT Fa
61.
Constructive feedback should be given at a time when you are most ready and able to have an impact of the receiver. F GT Fa
62.
Constructive feedback should be valid and limited to things the receiver can be expected to do something about. T GT Fa
63.
Constructive feedback should be given in large doses; the more feedback the receiver has, the more complete understanding she or he will have. F GT Fa
Use of Communication Channels 64.
Channel richness is the capacity of a communication channel to carry information in an effective manner. T KT Fa
65.
In a communication channel, low channel richness is personal, two-way, and slow. F GT Fa
66.
In a communication channel, high channel richness is impersonal, one-way, and fast. F GT Fa
67.
Managers need to understand the limits of a channel and choose wisely in communicating various types of messages. T GT Fa
Interactive Management 68.
“Management by wandering around” involves walking around and talking with subordinates about a variety of work-related matters. T KT Fa
69.
“Management by wandering around” reflects the actions of managers who do not have an adequate workload. F KT Fa
Chapter 17: Communication and Interpersonal Skills
683
70.
Managers and leaders can keep communication channels open through management by wandering around, open office hours, formal employee group meetings, and employee advisory councils. T GT Fa
71.
Managers and leaders can keep communication channels open through the use of employee advisory councils, on-line discussion forums, communication consultants, and computermediated meetings. T GT Fa
72.
When managers receive performance feedback from their subordinates, peers, bosses, and customers, the organization is using 360-degree feedback. T KT Fa
Proxemics and Space Design 73.
As part of the communication process, attributions refers to the use of space to convey varying intentions in terms of intimacy, openness, and status. F GT Fa
74.
Proxemics refers to the use of space to communicate varying intentions in terms of intimacy, openness, and status. T GT Fa
75.
The amount of interpersonal distance between people suggests varying intentions in terms of intimacy but not openness or status. F GT Fa
76.
Organizational ecology utilizes office or workspace architecture to help facilitate intense communication. T GT Fa
Technology Utilization 77.
Communication in contemporary organizations relies on the use of information technology such as e-mail, voice mail, instant messaging, teleconferencing, online discussions, videoconferencing, computer-mediated meetings, intranets, and Web portals. T GT Fa
78.
The electronic grapevine speeds messages and information from person to person. T GT Ap
79.
The electronic grapevine can be functional when the information is accurate and useful; it can be dysfunctional when the information is false, distorted, or simply based on rumor. T GT Ap
80.
The best advice regarding e-mail privacy at work is to find out the employer’s policy on personal e-mail and follow it, and to not assume that you have e-mail privacy at work. T GT Ap
684 81.
Schermerhorn & Wright: Management The best advice regarding e-mail privacy at work is to trust that your employer will notify you if and when your e-mail is being monitored. F GT Ap
Valuing Culture and Diversity 82.
Difficulties in communication between people from different cultures may result from ethnocentrism, or the tendency to consider one’s own culture as superior to all others. T KT Fa
83.
Considering one’s own culture as superior to all others can result in poor communication by causing one to not listen to what is being said by the other person. T GT Fa
84.
Considering one’s own culture as superior to all others can result in poor communication by causing someone to address or speak with others in ways that alienate them. T GT Fa
85.
Considering one’s own culture as superior to all others can result in poor communication by leading to the use of inappropriate stereotypes in dealing with people from another culture. T GT Fa
86.
Cross-cultural communication skills are important and useful at home as well as abroad. T GT Ap
THE PERCEPTION PROCESS (STUDY QUESTION 3) 87.
The process through which people receive, organize, and interpret information from their environment is called impression management F KT Fa
88.
The process through which people receive, organize, and interpret information from their environment is called perception. T KT Fa
89.
Perception acts as a filter through which information must pass in interpersonal communication. T KT Fa
90.
Perception influences communication and interpersonal relations. T KT Fa
91.
People rarely have differing perceptions of the same thing. F KT Fa
92.
Tendencies toward perceptual distortion affect interpersonal communications. T KT Fa
Chapter 17: Communication and Interpersonal Skills 93.
685
Individual perceptions are influenced by values, cultural backgrounds, and personal and situational circumstances. T KT Fa
Perception and Attribution 94.
When an observer blames another person’s performance failures or problems more on internal factors relating to the individual than on external factors relating to the environment, the observer is promoting a self-serving bias. F KT Fa
95.
The process of developing causal explanations for things that happen to people is called attribution. T GT Fa
96.
The self-serving bias and the fundamental attribution error provide explanations of the factors that people use in explaining their own and others’ behaviour. T GT Fa
97.
When an individual blames his/her personal failures or problems on external causes and attributes his/her successes to internal causes, the individual is making the fundamental attribution error. F KT Fa
Perceptual Tendencies and Distortions 98.
Identifying an individual with a group or category and using oversimplified attributes of the category or group to describe the individual is the perceptual distortion mechanism of selective perception. F KT Fa
99.
Common stereotypes in the workplace include racial and ethnic stereotypes, gender stereotypes, ability stereotypes, and age stereotypes. T GT Fa
100.
Using a single attribute to develop an overall impression of a person or situation is called stereotyping. F KT Fa
101.
Singling out for attention those aspects of a situation or attributes of a person that reinforce or are consistent with one’s beliefs, values, or needs is termed projection. F KT Fa
102.
Assigning one’s personal attributes to another individual is an instance of the halo effect. F KT Fa
686
Schermerhorn & Wright: Management
CONFLICT (STUDY QUESTION 4) 103.
Conflict is a disagreement between two or more people on substantive or emotional issues. T KT Fa
104.
Conflict that occurs because of disagreements over things such as goals, the allocation of resources, the distribution of rewards, policies and procedures, or job assignments is referred to as emotional conflict. F KT Fa
105.
When employees have feelings of anger, distrust, dislike, fear, and resentment toward others, substantive conflict is the likely cause. F KT Fa
Functional and Dysfunctional Conflict 106.
The type of conflict that stimulates employees to work toward greater effort, cooperation, and creativity is functional conflict. T KT Fa
107.
Functional or constructive conflict occurs when conflict is moderate. T GT Fa
108.
Dysfunctional conflict is destructive and hurts task performance. T KT Fa
109.
Dysfunctional or destructive conflict occurs when conflict is very low or very high. T GT Fa
Causes of Conflict 110.
Antecedent conditions that give rise to conflict include role ambiguities, resource scarcities, task interdependencies, competing objectives, structural differentiation, and unresolved prior conflicts T GT Fa
111.
As a cause of conflict, role ambiguities involve unclear job expectations and other task uncertainties that increase the likelihood of people working at cross-purposes. T GT Fa
112.
As a cause of conflict, resource scarcities involve having to share resources with others or competing directly with others for resources. T GT Fa
113.
As a cause of conflict, competing objectives involve individuals or groups being dependent on what others do in order to perform well themselves. F GT Fa
Chapter 17: Communication and Interpersonal Skills
687
114.
As a cause of conflict, structural differentiation involves poorly set objectives or poorly designed reward systems. F GT Fa
115.
As a cause of conflict, task interdependencies involve differences in organization structures and the characteristics of the people staffing them. F GT Fa
116.
As a cause of conflict, role ambiguities involve conflicts that remain latent and later re-emerge. F GT Fa
How to Deal with Conflict 117.
Effective conflict resolution eliminates the underlying substantive or emotional causes of conflict and reduces the potential for similar conflicts in the future. T KT Fa
118.
Conflict may remain latent in the situation if it is not resolved. T GT Ap
119.
True conflict resolution removes any existing conditions that might rekindle the original conflict. T GT Ap
120.
It is extremely difficult, if not, impossible, to effectively resolve conflicts by appealing to superordinate goals that focus attention of the conflicting parties on one mutually desirable end state. F GT Ap
121.
Conflicts can be resolved by making more resources available to everyone or by replacing or transferring one or more of the conflicting parties. T GT Ap
122.
It is extremely difficult, if not, impossible, to effectively resolve conflicts by rearranging facilities, workspaces, and workflows to reduce opportunities for conflict. F GT Ap
123.
Using liaison personnel, special task forces, cross-functional teams, or a matrix organization can help to change interaction patterns and assist in conflict management. T GT Ap
124.
It is extremely difficult, if not, impossible, to effectively resolve conflicts by changing reward systems to reduce competition among individuals and groups for rewards. F GT Ap
125.
Policies and procedures may be used to direct behaviour in appropriate ways in order to effectively resolve conflicts. T GT Ap
126.
Training in interpersonal skills can help prepare people to work more effectively in conflict situations. T GT Ap
688
Schermerhorn & Wright: Management
Conflict Management Styles 127.
In assessing conflict management styles, assertiveness refers to the desire to satisfy another party’s needs and concerns. F GT Fa
128.
In assessing conflict management styles, cooperativeness refers to the desire to satisfy one’s own needs and concerns. F GT Fa
129.
The conflict management style of avoidance involves being uncooperative and unassertive. T KT Fa
130.
The conflict management style of accommodation is characterized by downplaying disagreement, withdrawing from the situation, and/or staying neutral at all costs. F KT Fa
131.
The conflict management style of accommodation involves being cooperative and unassertive. T KT Fa
132.
The conflict management style of avoidance is characterized by letting the wishes of others rule, and smoothing over or overlooking differences to maintain harmony. F KT Fa
133.
The conflict management style of competition involves being uncooperative and assertive. T KT Fa
134.
The conflict management style of competition is characterized by working against the wishes of the other party, engaging in win-lose competition, and/or forcing through the exercise of authority. T KT Fa
135.
The conflict management style of collaboration involves being moderately cooperative and assertive. F KT Fa
136.
The conflict management style of compromise is characterized by bargaining for “acceptable” solutions where each party wins a bit and loses a bit. T KT Fa
137.
The conflict management style of compromise involves being both cooperative and assertive. F KT Fa
138.
The conflict management style of collaboration is characterized by trying to fully satisfy everyone’s concerns by working through differences, finding and solving problems so that everyone gains. T KT Fa
139.
The avoidance and accommodation conflict management styles create lose-lose conflicts. T GT Ap
Chapter 17: Communication and Interpersonal Skills
689
140.
Lose-lose conflict occurs when no one achieves his or her true desire and the underlying reasons for conflict remain unaffected. T KT Fa
141.
The competing and compromising conflict management styles create win-lose conflicts. T GT Ap
142.
When conflict management results in one party achieving its desires and the other party not achieving its desires, a win-lose conflict will occur. T KT Fa
143.
The collaboration conflict management style creates a win-win conflict. T GT Ap
144.
When conflict is resolved to the mutual benefit of all parties, it is called a win-win conflict resolution. T KT Fa
145.
Win-win conflict resolution is typically achieved by open confrontation and open discussion of all relevant issues. T GT Fa
146.
Win-win conflict resolution occurs when the underlying causes of the conflict are eliminated. T GT Fa
147.
Win-win conflict resolution is the most preferred result of conflict management. T GT Fa
NEGOTIATION (STUDY QUESTION 5) 148.
Negotiation is the process of making joint decisions when the parties involved have different preferences. T KT Fa
149.
Negotiation is susceptible to conflict and it tests the communication and interpersonal skills of the people involved. T GT Ap
Negotiation Goals and Approaches 150.
Substance goals are concerned with outcomes and the content issues of negotiation. T GT Fa
151.
Process goals are concerned with processes and the way people work together during negotiation and how they (and any constituencies they represent) will be able to work together again in the future. T GT Fa
690
Schermerhorn & Wright: Management
152.
Effective negotiation occurs when issues of substance are resolved and working relationships among the negotiating parties are maintained or improved. T GT Fa
153.
Quality, cost, and harmony are criteria for evaluating the effectiveness of negotiations. T GT Fa
154.
The distributive negotiation approach focuses on “win-lose” claims made by each party for certain preferred results. T KT Fa
155.
The principled or integrative negotiation approach focuses on trying to achieve a “win-win” solution that considers the interests of all the negotiating parties. T KT Fa
Gaining Integrative Agreements 156.
In conducting a principled negotiation, a person should separate the people from the problem; focus on interests, not on positions; generate many alternatives before deciding what to do; and insist that results are based on an objective standard T GT Fa
157.
To achieve an integrative agreement, each negotiating party should be willing to trust, share information with, and ask reasonable questions of the other party. T GT Fa
158.
To achieve an integrative agreement, each party should know what is really important to them and should find out what is really important to the other party. T GT Fa
159.
A negotiator’s personal best alternative to a negotiated agreement (BATNA) addresses his or her question: “What will I do if an agreement cannot be reached?” T KT Fa
160.
In a two-party negotiation, the minimum reservation point refers to the smallest outcome that one party is willing to accept and the maximum reservation point refers to the largest outcome that the other party is prepared to eventually offer. T GT Fa
161.
The bargaining zone in a classic two-party negotiation is defined as the zone between one party’s minimum reservation point and the other party’s maximum reservation point. T KT Fa
162.
In conducting a negotiation, a positive bargaining zone exists whenever the reservation points of the two bargaining parties overlap. When this happens there is room for true negotiation. T GT Fa
163.
A key task for any negotiator is to discover the other party’s reservation point. T GT Fa
Chapter 17: Communication and Interpersonal Skills
691
Avoiding Negotiation Pitfalls 164.
Nonrational escalation of conflict involves acting on the distributive assumption that in order for one party to gain, the other party must lose. F GT Fa
165.
Falling prey to the myth of the “fixed pie” occurs when the negotiator becomes committed to previously stated demands and allows needs for “ego” and “face saving” to increase the perceived importance of satisfying those demands. F GT Fa
166.
Too much “telling” and too little “hearing” occurs when the negotiator becomes overconfident, believing that his or her position is the only correct one, and failing to see the needs of the other party and the merits of the other party’s position. F GT Fa
167.
Overconfidence and ignoring others’ needs occurs when the negotiating parties don’t make themselves understood to each other and they fail to listen sufficiently well to understand what each other is saying. F GT Fa
Dispute Resolution 168.
Arbitration involves a neutral third party who tries to improve communication between negotiating parties and keep them focused on relevant issues. F KT Fa
169.
Mediation involves a neutral third party who acts as a “judge” and issues a binding decision to resolve a dispute. F KT Fa
170.
Alternative dispute resolution utilizes mediation and or arbitration but only after direct attempts to negotiate agreements between the conflicting parties have failed. T GT Fa
171.
In the alternative dispute resolution process, an ombudsperson is a designated neutral third party who listens to complaints and disputes. T GT Fa
Ethical Issues in Negotiation 172.
Managers and anyone else involved in negotiations should be willing to set aside high ethical standards in order to compete successfully in a dynamic and challenging business environment. F GT Fa
173.
The motivation to behave unethically can arise from undue emphasis on the profit motive or a sense of competition. T GT Fa
692
Schermerhorn & Wright: Management
174.
When unethical behaviour occurs in negotiations, the persons involved rarely attempt to rationalize or explain it away. F GT Fa
175.
Acceptance of unethical negotiating behaviour or the rationalization of it can result in short-run gains as well as long-run losses for the offending negotiator. T GT Fa
176.
Unethical negotiating behaviour or the rationalization of it can result in the other party losing trust in or seeking revenge against the offending negotiator. T GT Fa
Multiple Choice Questions CHAPTER INTRODUCTION 177.
The ability to communicate well both orally and in writing is __________. A. A critical managerial skill and a foundation of effective leadership. B. Essential for general managers but not functional managers. C. What separates leaders from managers. D. All of the above. E. None of the above. A GT Fa
178.
Which of the following statements provides an inaccurate description of the role and importance of communication in organizations? A. Oral and written communication skills are critical for effective leadership. B. Communication enables people to exchange and share information with each other. C. Managers can succeed without being good communicators. D. Communication permits people to influence one another’s attitudes, behaviours, and understandings. E. Communication enables people to establish and maintain interpersonal relationships. C GT Fa
179.
Which statement about communication is CORRECT? A. Communication is essential for listening to others. B. Communication is essential for gaining the information needed to create an inspirational workplace. C. Communication is essential for handling conflict and negotiating successfully. D. Communication is essential for leading successfully. E. Communication is essential for all of the above activities. E GT Fa
Chapter 17: Communication and Interpersonal Skills
693
THE COMMUNICATION PROCESS (STUDY QUESTION 1) 180.
__________ is an interpersonal process of sending and receiving symbols with messages attached to them. A. Conflict resolution. B. Communication. C. Teamwork. D. Organization design. E. Decision making. B KT Fa
181.
Which of the following is NOT one of the key elements in the communication process? A. Sender. B. Feedback. C. Receiver. D. Channel. E. Goal. E GT Fa
182.
In the communication process, the __________ is the person who is responsible for encoding an intended message into meaningful verbal and nonverbal symbols. A. Sender. B. Messenger. C. Channel. D. Receiver. E. Manager. A GT Fa
183.
In the communication process, __________ is sent through a communication channel to a __________, who then decodes or interprets its meaning. A. Noise person. B. Feedback receiver. C. The message receiver. D. A decision work team. E. An attribution a leader. C GT Fa
184.
When present, __________ reverses the communication process and conveys the receiver’s response to the sender. A. Encoding. B. Decoding. C. Feedback. D. Noise. E. Efficiency. C GT Fa
694
Schermerhorn & Wright: Management
What Is Effective Communication? 185.
Which of the following statements accurately describes communication effectiveness? A. Effective communication occurs when the sender’s intended message and the receiver’s interpreted meaning of that message are identical. B. Effective communication occurs when the receiver (subordinate) does exactly what the sender (supervisor) wants. C. Effective communication means there are no wasted words or gestures. D. Effective communication is the same as efficient communication. E. Effective communication occurs when minimal time is spent in the communication process. A KT Fa
186.
Which of the following statements accurately describes communication efficiency? A. Efficient communication occurs when the intended message of the sender and the perceived meaning of the receiver are one and the same. B. Efficient communication occurs at minimum cost in terms of resources expended. C. Efficient communication occurs in one-way, rather than two-way, communication. D. Efficient communication means that all noise has been eliminated from the communication process. E. Efficient communication is the same as effective communication. B KT Fa
187.
A manager describes how to perform a new task to a subordinate; the subordinate then repeats the instructions accurately and does the job flawlessly. The manager then follows the same procedure with several other employees, one at a time. This communication process would most likely be characterized as __________. A. Effective but not efficient communication. B. Efficient but not effective communication. C. Neither effective nor efficient communication. D. Both effective and efficient communication. E. A typical failure of leadership. A GT Ap
188.
A manager reaches a large number of employees with a minimum of cost and effort by posting instructions on a bulletin board. Not all the employees understand the directions. This communication process would most likely be described as __________. A. Effective but not efficient communication. B. Efficient but not effective communication. C. Neither effective nor efficient communication. D. Both effective and efficient communication. E. A typical failure of leadership. B GT Ap
Chapter 17: Communication and Interpersonal Skills
695
Persuasion and Credibility in Communication 189.
__________ is getting someone else to support the message being presented. A. Nonverbal communication. B. Filtering. C. Feedback. D. Persuasion. E. Active listening. D KT Fa
190.
Which of the following statements about communication and persuasion is/are correct? A. Communication is not always about sharing information; sometimes it is about influencing another person in a desired way. B. Persuasion occurs very frequently in horizontal structures and within the context of empowerment. C. The personal power bases of expertise and reference are essential for persuasion. D. A and B. E. A, B, and C. E GT Fa
191.
__________ refers to trust, respect, and integrity in the eyes of others. A. Morality. B. Proxemics. C. Credibility. D. Filtering. E. Active listening. C KT Fa
192.
Building credibility through __________ requires knowledge about the issue in question and/or a successful prior track record at dealing with similar issues. A. Task performance. B. Expertise. C. Relationships. D. Authority. E. Familiarity. B GT Fa
193.
Building credibility through __________ requires having a good working relationship with the person to be persuaded. A. Task performance. B. Expertise. C. Relationships. D. Authority. E. Familiarity. C GT Fa
696
Schermerhorn & Wright: Management
Communication Barriers 194.
Anything that interferes with the effectiveness of the communication process is __________. A. Disturbance. B. Physical distraction. C. Noise. D. An ineffective channel. E. Passive feedback. C KT Fa
195.
Common sources of noise in the communication process include all of the following EXCEPT: A. Poor choice of channels. B. Feedback. C. Failure to recognize nonverbal signals. D. Physical distractions. E. Status effects. B GT Fa
196.
The medium through which a message is conveyed from sender to receiver is called a __________. A. Nerve center. B. Newswire. C. Grapevine. D. Communication channel. E. Office network. D KT Fa
197.
Jim is the manager of a 250-employee division of a company. He must make sure everyone in his division is informed about policy changes that will affect their insurance and retirement withholding on their paychecks. The best way for Jim to communicate the new policy would be through a(n) __________ communication channel. A. Oral. B. Written. C. Nonverbal. D. Oral then written. E. Nonverbal then oral. B GT Ap
198.
Nancy, a plant manger, received a directive from corporate headquarters to examine possible ways for redesigning work processes to improve plant productivity. Knowing this would be a “hot button” issue with plants workers, Nancy needs to communicate this news to them as effectively as possible. Which communication approach should Nancy use? A. Oral communication. B. Written communication. C. Nonverbal communication. D. Delegate the task to a lower-level manager. E. Nonverbal then written communication. A GT Ap
Chapter 17: Communication and Interpersonal Skills
697
199.
Becoming effective in written and oral communications __________. A. Requires skill. B. Takes practice and hard work. C. Is essential for managers D. All of the above. E. None of the above. D GT Ap
200.
Guidelines for making a successful oral presentation include all of the following EXCEPT: A. Set the right tone. B. Support the points made in the presentation. C. Use good visual aids. D. Check the technology to be used. E. Wing it, for a more natural delivery. E MN Fa
201.
Guidelines for making a successful oral presentation include all of the following EXCEPT: A. Be audience centered and make eye contact. B. Be on time. C. Be flashy in dress and gestures. D. Know what you want to say. E. Accent the presentation. C MN Fa
202.
__________ takes place through such things as hand movements, body posture, eye contact, and the use of interpersonal space. A. Mixed messages. B. Verbal communication. C. Nonverbal communication. D. Status effects. E. Oral communication. C KT Fa
203.
Which of the following statements about nonverbal communication is inaccurate? A. It includes body posture and eye contact as well as facial expressions and gestures. B. It can be transmitted without the sender knowing or desiring it. C. When it communicates something different from the person’s words, a mixed message is possible. D. It does not involve people’s use of inanimate objects. E. It can be used intentionally to enhance oral communication. D GT Fa
698
Schermerhorn & Wright: Management
204.
A __________occurs when a person’s words communicate one message while his/her actions, body language, appearance, or situational use of interpersonal space communicate something else. A. Physical distraction. B. Cultural difference. C. Mixed message. D. Status effect. E. Halo effect. C KT Fa
205.
A mixed message occurs when __________. A. A person’s words communicate one message while actions, body language, or appearance communicate something else. B. A person uses both written and oral communication channels at the same time. C. A person gives the original message in written form and receives the feedback orally. D. The person sending the message is from a different culture than the person receiving the message. E. The person sending the message uses two languages. A KT Ap
206.
Telephone interruptions, drop-in visitors, and lack of privacy are examples of __________ that can interfere with the effectiveness of a communication attempt. A. Status effects. B. Physical distractions. C. Filtering effects. D. Mixed messages. E. Channels. B GT Fa
207.
Which of the following statements on physical distractions is incorrect? A. Physical distractions include phone calls and personal interruptions. B. Physical distractions create information overload. C. Physical distractions can be corrected by setting priorities and planning. D. Physical distractions are a source of noise. E. Physical distractions seldom interfere with the effectiveness of communication. E GT Fa
208.
Status effects on communication __________. A. Are fewer in hierarchical organizations where managers and employees know their places. B. Are seldom serious. C. Can result in corporate cover-ups. D. Result from managers listening to employees too much. E. Reflect the impact of managerial titles. C GT Fa
Chapter 17: Communication and Interpersonal Skills
699
209.
__________ is the intentional distortion of information to make it appear favourable to the recipient. A. Projection. B. Stereotyping. C. Filtering. D. Ethnocentrism. E. Selective perception. C KT Fa
210.
Status effects on communication __________. A. Are seldom serious. B. Are deliberate distortions by employees. C. Are fewer in hierarchical organizations where managers and employees know their places. D. Often cause subordinates to bias their communication with higher-level managers. E. Result from managers having to listen too much to employees. D GT Fa
211.
Fred is a department manager for a firm that develops computer-networking packages. This morning he held a staff meeting with his subordinates to inform them about some design changes. Several of them felt the changes might not work but were somewhat reluctant to bring it up in the meeting. Even though they did bring it up in the meeting, they diluted the impact of their objections and concerns. Fred didn’t give them much chance anyway when he said, “I’ve been around here a long time. The changes will work. I don’t have time to discuss it. Just make the changes and get on with things.” This is a good example of how ______________ can become a barrier to effective communication. A. Nonverbal signals. B. Semantic problems. C. Proxemics. D. Filtering and status effects. E. Physical distractions. D GT Ap
IMPROVING COMMUNICATION (STUDY QUESTION 2) 212.
Communication barriers can be overcome, perceptual distortions can be minimized, and the communication process can be improved by doing all of the following EXCEPT: A. Engaging in active listening. B. Providing constructive feedback. C. Opening communication channels. D. Using space and technology. E. Discounting diversity. E GT Fa
700
Schermerhorn & Wright: Management
Active Listening 213.
The process of helping the source of a message say what he or she really means is called __________. A. Managerial communication. B. Communicating with intent. C. Reflective communication. D. Active listening. E. Listening with an open ear. D KT Fa
214.
Active listening entails doing all of the following EXCEPT: A. Listening for message content. B. Listening for feelings. C. Ignoring emotional states. D. Noting all cues. E. Paraphrasing and restating. C GT Fa
215.
Which of the following is NOT a guideline for the active listener? A. Try to hear exactly what is being said in the message. B. Try to identify how the speaker feels about the message content. C. Let the source know that his or her feelings are being recognized. D. Ignore nonverbal cues. E. Restate what you think you are hearing. D GT Fa
216.
Which of the following is NOT a rule of good listening? A. Put the other person at ease. B. Use argument if necessary to get to the point. C. Try to see the other person’s point of view. D. Ask questions to encourage the other person. E. Be patient and allow plenty of time. B MN Fa
217.
There are ten rules for good listening cited in the textbook, but only nine of the rules are unique. One rule is listed twice because of its importance. Which rule is listed twice? A. Put the person at ease. B. Be patient. C. Hold your temper. D. Stop talking. E. Ask questions. D MN Fa
Chapter 17: Communication and Interpersonal Skills
701
Constructive Feedback 218.
Feedback __________. A. Is another name for distortion or noise. B. Is nonevaluative. C. Is often effective when used with a threatening edge that demonstrates who is in charge. D. Produces mixed messages. E. Is the process of telling other people how you react to something they did or said. E KT Fa
219.
When __________, feedback can be threatening to the recipient and cause resentment. A. Poorly done. B. Properly done. C. Done by team leaders. D. Done by functional managers. E. Done by top managers. A GT Fa
220.
When __________, feedback can be listened to, accepted, and used to good advantage by the receiver. A. Poorly done. B. Properly done. C. Done by team leaders. D. Done by functional managers. E. Done by top managers. B GT Fa
221.
Which of the following statements correctly identifies elements of constructive feedback? A. Constructive feedback is based on trust, is general rather than specific, and is limited to what a receiver can handle. B. Constructive feedback avoids feeling, is given when a receiver is ready to accept it, and is checked with others. C. Constructive feedback is given with real feeling, is general rather than specific, and is concerned with things a receiver can actually remedy. D. Constructive feedback is based on trust, is specific rather than general, and is checked with others. E. Constructive feedback avoids feeling, is specific rather than general, and is concerned with things a receiver can actually remedy. D GT Fa
222.
Which of the following statements is NOT a guideline for providing constructive feedback?. A. Give feedback directly and with real feeling, based on trust between you and the receiver. B. Make feedback specific rather than general; use good, clear, and preferably recent examples to make your points. C. Give feedback at a time when the receiver seems most willing or able to accept it. D. Make sure the feedback is valid and limit it to things the receiver can be expected to do something about. E. Give feedback in large doses; the more feedback the receiver has, the more complete understanding he/she will have. E GT Fa
702
Schermerhorn & Wright: Management
Use of Communication Channels 223.
__________ is the capacity of a communication channel to carry information in an effective manner. A. Channel capacity. B. Channel richness. C. Channel effectiveness. D. Channel carrying capacity. E. Channel opportunism. B KT Fa
224.
Which of the following statements about channel richness is/are correct? A. Low channel richness is personal, two-way, and slow. B. High channel richness is impersonal, one-way, and fast. C. Managers need to understand the limits of a channel and choose wisely in communicating various types of messages. D. All of the above are correct statements about channel richness. E. All of the above are incorrect statements about channel richness. C GT Fa
Interactive Management 225.
“Management by wandering around” __________. A. Is a physical manifestation of the chain of command. B. Is a symbolic act with no clear business purpose. C. Involves walking around and talking with subordinates about a variety of work-related matters. D. Reflects the actions of managers who do not have an adequate workload. E. Is personality oriented rather than work oriented. C KT Fa
226.
Managers and leaders can take several different steps to keep communication channels open. Which of the following is not one of these steps? A. Management by wandering around. B. Open office hours. C. Formal employee group meetings. D. Employee advisory councils. E. One-way feedback. E GT Fa
227.
Which of the following is NOT an approach that managers and leaders can take to keep communication channels open? A. Employee advisory councils. B. Online discussion forums. C. Closed-door policy. D. Communication consultants. E. Computer-mediated meetings. C GT Fa
Chapter 17: Communication and Interpersonal Skills 228.
703
When managers receive feedback on their performance from their subordinates, peers, bosses, and customers, the organization is using which communication approach? A. Lateral feedback.. B. Diagonal feedback. C. Downward feedback. D. 360-degree feedback.. E. Multicompany assessment. D KT Fa
Proxemics and Space Design 229.
As part of the communication process, __________ refers to the use of space to convey varying intentions in terms of intimacy, openness, and status. A. Attributions. B. Mixed messages. C. Nonverbal behaviours. D. Proxemics. E. Perceptual distortions D GT Fa
230.
The amount of interpersonal distance between people suggests varying intentions in terms of __________. A. Intimacy. B. Openness. C. Status. D. All of the above. E. None of the above. D GT Fa
231.
Matthew indicates his preference for the use of interpersonal space by placing a chair in front of his desk for clients to sit in when discussing their orders. Matthew’s action is a reflection of __________. A. Projection. B. Proxemics. C. Sales management. D. Manipulatory behaviour. E. Negotiating skill. B GT Ap
232.
The practice of __________ involves utilizing office or workspace architecture to help facilitate intense communication. A. Organizational behaviour. B. Organizational ecology. C. Organizational development. D. Organizational design. E. Job design. B GT Fa
704
Schermerhorn & Wright: Management
Technology Utilization 233.
Communication in contemporary organizations relies on the use of __________ such as e-mail, voice mail, instant messaging, teleconferencing, online discussions, videoconferencing, computer-mediated meetings, intranets, and Web portals A. Media guides. B. Office tools. C. Information technology. D. Postal operations. E. Film industry techniques. C GT Fa
234.
Which of the following statements about the electronic grapevine is/are correct? A. The electronic grapevine speeds messages and information form person to person. B. The electronic grapevine can be functional when the information is accurate and useful. C. The electronic grapevine can be dysfunctional when the information is false, distorted, or simply based on rumor. D. All of the above. E. None of the above. D GT Ap
235.
The best advice regarding e-mail privacy at work is to __________. A. Find out the employer’s policy on personal e-mail and follow it. B. Not assume that you have e-mail privacy at work. C. Trust that your employer will notify you if and when your e-mail is being monitored. D. A and B. E. A and C. D GT Ap
Valuing Culture and Diversity 236.
Difficulties in communication between people from different cultures may result from the tendency to consider one’s own culture as superior to all others. This tendency is known as __________. A. Impression management. B. The halo effect. C. Ethnocentrism. D. Culture shock. E. The status effect. C KT Fa
237.
Considering one’s own culture as superior to all others can result in poor communication in which of the following ways? A. It can cause someone to not listen to what is being said by the other person. B. It can cause someone to address or speak with others in ways that alienate them. C. It can lead to the use of inappropriate stereotypes in dealing with people from another culture. D. All of the above. E. None of the above. D GT Fa
Chapter 17: Communication and Interpersonal Skills 238.
705
Cross-cultural communication skills are important and useful __________. A. Only in Oriental nations. B. Only in cultures with languages different from one’s own. C. Only in cultures with religions different from one’s own. D. Only in Eastern European nations. E. At home as well as abroad. E GT Ap
THE PERCEPTION PROCESS (STUDY QUESTION 3) 239.
The process through which people receive, organize, and interpret information from their environment is called __________. A. Communication. B. Perception. C. Cognition. D. Active listening. E. Impression management. B KT Fa
240.
Which of the following statements does NOT correctly describe the impact of perception on interpersonal communication? A. Perception acts as a filter through which information must pass in interpersonal communication. B. Perception influences communication and interpersonal relations. C. People rarely have differing perceptions of the same thing. D. Tendencies toward perceptual distortion affect interpersonal communications. E. Individual perceptions are influenced by values, cultural backgrounds, and personal and situational circumstances. C GT Fa
Perception and Attribution 241.
When an observer blames another person’s performance failures or problems more on internal factors relating to the individual than on external factors relating to the environment, the observer is __________. A. Making a fundamental attribution error. B. Promoting a self-serving bias. C. Doing a legitimate performance appraisal. D. All of the above. E. None of the above. A KT Fa
706
Schermerhorn & Wright: Management
242.
Which of the following items does NOT accurately characterize attribution? A. People try to explain what they observe and what happens to them. B. The process of developing causal explanations for things that happen to people is called attribution. C. The self-serving bias and the fundamental attribution error provide explanations of the factors that people use in explaining their own and others’ behaviour. D. Attributions can have a profound effect in work settings. E. People tend to perceive the same things in the same way, E GT Fa
243.
When an individual blames his/her personal failures or problems on external causes and attributes his/her successes to internal causes, the individual is ____________. A. Using the halo effect. B. Perceiving things accurately. C. Relying on the self-serving bias. D. Engaging in selective perception. E. Doing a proper performance analysis. C KT Fa
Perceptual Tendencies and Distortions 244.
Perceptual distortions include all of the following EXCEPT: A. Halo effects. B. Stereotyping. C. Perceptual selectivity. D. Paranoia. E. Projection. D GT Fa
245.
Identifying an individual with a group or category and using oversimplified attributes of the group or category to describe the individual is the perceptual distortion mechanism of __________. A. Stereotyping. B. The halo effect. C. Selective perception. D. A neurological disorder. E. Projection. A KT Fa
246.
Common stereotypes in the workplace include all the following EXCEPT: A. Racial and ethnic stereotypes. B. Gender stereotypes. C. Ability stereotypes. D. Age stereotypes. E. Behavioural stereotypes. E GT Fa
Chapter 17: Communication and Interpersonal Skills
707
247.
Which of the following stereotypes might contribute to the slow progress of minority managers in corporate America? A. Racial and ethnic stereotypes. B. Gender stereotypes. C. Ability stereotypes. D. Age stereotypes. E. Behavioural stereotypes. A GT Fa
248.
A man has lunch with his boss (also a man) and is considered to be on his way up in the organization. A woman has lunch with her boss (a man) and is thought to be having an affair. This is an example of __________. A. Gender stereotyping. B. Selective perception. C. Impression management. D. Projection. E. The halo effect. A GT Ap
249.
Two recent graduates with computer science degrees applied for a job in computer programming. Both had similar qualifications and had received awards for academic excellence at their respective universities. One of the applicants was deaf. The hiring manager decided to not offer the job to the deaf person because of concerns about how he would perform. What type of stereotyping has affected the manager’s perceptions? A. Racial stereotyping. B. Ethnic stereotyping. C. Gender stereotyping. D. Ability stereotyping. E. Age stereotyping. D GT Ap
250.
Suppose that a manager assumes older workers cannot perform well in important and challenging jobs because, in her opinion, they lack creativity and are risk averse. Which stereotype is this manager using? A. Racial stereotype. B. Ethnic stereotype. C. Gender stereotype. D. Ability stereotype. E. Age stereotypes. E GT Ap
251.
Using a single attribute to develop an overall impression of a person or situation is called __________. A. Stereotyping. B. The halo effect. C. Selective perception. D. Impression management. E. Projection. B KT Fa
708
Schermerhorn & Wright: Management
252.
Your boss is a very effective public speaker. You assume that she is also skilled at written communication. This is an example of __________. A. Projection. B. Stereotyping. C. Selective perception. D. The halo effect. E. Ingratiation. D GT Ap
253.
Singling out for attention those aspects of a situation or attributes of a person that reinforce or are consistent with one’s beliefs, values, or needs is termed __________. A. Stereotyping. B. The halo effect. C. Selective perception. D. Impression management E. Projection. C KT Fa
254.
Suppose that a task force is addressing a rather ambiguous problem. A representative from the marketing department views it clearly as a marketing problem and a representative from the manufacturing department views it clearly as a manufacturing problem. In this case, the chair of the task force must be careful to avoid biased decision making caused by __________. A. Stereotypes. B. The halo effect. C. Selective perception. D. Projection. E. Mixed messages. C GT Ap
255.
Assigning one’s personal attributes to another individual is an instance of __________. A. Stereotyping. B. The halo effect. C. Selective perception. D. Impression management E. Projection. E KT Fa
256.
Suppose that a manager begins a program of job enrichment because she enjoys responsibility and challenges and assumes that her employees do also. This manager is practicing __________. A. Stereotyping. B. Projection. C. The halo effect. D. Networking. E. Selective perception. B GT Ap
Chapter 17: Communication and Interpersonal Skills
709
CONFLICT (STUDY QUESTION 4) 257.
__________ is the disagreement between two or more people on substantive or emotional issues. A. Compromise. B. Behavioural self-interest. C. Competitiveness. D. Social discord. E. Conflict. E KT Fa
258.
Conflict that occurs because of disagreements over things such as goals, the allocation of resources, the distribution of rewards, policies and procedures, or job assignments is referred to as __________conflict. A. Substantive. B. Administrative. C. Organizational. D. Emotional. E. Confrontational. A KT Fa
259.
When employees have feelings of anger, distrust, dislike, fear, and resentment toward others, __________ conflict is the likely cause. A. Substantive. B. Administrative. C. Emotional. D. Organizational. E. Confrontational. C KT Fa
Functional and Dysfunctional Conflict 260.
The type of conflict that stimulates employees to work toward greater work efforts, cooperation, and creativity is __________ conflict. A. Functional. B. Concentrated. C. Dysfunctional. D. Destructive. E. Cooperative. A KT Fa
261.
Functional or constructive conflict occurs when conflict is __________. A. Very low. B. Moderate. C. Very high. D. Both A and C. E. Both B and C. B GT Fa
710
Schermerhorn & Wright: Management
262.
__________ conflict is destructive and hurts task performance. A. Functional. B. Concentrated. C. Dysfunctional. D. Constructive. E. Cooperative. C KT Fa
263.
Dysfunctional or destructive conflict occurs when conflict is __________. A. Very low. B. Moderate. C. Very high. D. Both A and C. E. Both B and C. D GT Fa
264.
The relationship between conflict intensity and performance is best described as __________. A. Low levels of conflict lead to the most positive outcomes. B. High levels of conflict lead to the most positive outcomes. C. Moderate levels of conflict lead to the most positive outcomes. D. Zero conflict leads to the most positive outcomes. E. None of the above. C GT Fa
265.
The relationship between conflict intensity and performance is best described as __________. A. Low levels of conflict lead to low performance. B. High levels of conflict lead to low performance. C. Moderate levels of conflict lead to high performances. D. All of the above. E. None of the above. D GT Fa
Causes of Conflict 266.
Antecedent conditions that give rise to conflict include all of the following EXCEPT: A. Role ambiguities. B. Resource scarcities. C. Task interdependencies. D. Competing objectives. E. Superordinate goals. E GT Fa
267.
According to the text, which of the following is NOT a cause of conflict? A. Role ambiguities. B. Structural differentiation. C. Technological advances. D. Task interdependencies. E. Unresolved prior conflicts. C GT Fa
Chapter 17: Communication and Interpersonal Skills
711
268.
As a cause of conflict, __________ involve unclear job expectations and other task uncertainties that increase the likelihood that people will be working at cross-purposes. A. Role ambiguities. B. Resource scarcities. C. Task interdependencies. D. Competing objectives. E. Structural differentiation. A GT Fa
269.
As a cause of conflict, __________ involve having to share resources with others or compete directly with others for resources. A. Role ambiguities. B. Resource scarcities. C. Task interdependencies. D. Competing objectives. E. Structural differentiation B GT Fa
270.
As a cause of conflict, __________ involve individuals or groups being dependent on what others do in order to perform well themselves. A. Role ambiguities. B. Task interdependencies. C. Competing objectives. D. Structural differentiation E. Unresolved prior conflicts. B GT Fa
271.
As a cause of conflict, __________ involve poorly set objectives or poorly designed reward systems. A. Role ambiguities. B. Task interdependencies. C. Competing objectives. D. Structural differentiation E. Unresolved prior conflicts. C GT Fa
272.
As a cause of conflict, __________ involve differences in organization structures and the characteristics of the people staffing them. A. Role ambiguities. B. Task interdependencies. C. Competing objectives. D. Structural differentiation E. Unresolved prior conflicts. D GT Fa
712 273.
Schermerhorn & Wright: Management As a cause of conflict, __________ involve conflicts that remain latent and later re-emerge. A. Role ambiguities. B. Task interdependencies. C. Competing objectives. D. Structural differentiation E. Unresolved prior conflicts. E GT Fa
How to Deal with Conflict 274.
Effective __________ eliminates the underlying substantive or emotional causes of conflict and reduces the potential for similar conflicts in the future. A. Stress management. B. Constructive feedback. C. Conflict resolution. D. Negotiation. E. Decision making. C KT Fa
275.
Which of the following statements is NOT true regarding conflict and conflict resolution? A. Conflict may remain latent in the situation if it is not resolved. B. Effective conflict resolution should eliminate the underlying cause for conflict. C. True conflict resolution removes any existing conditions that might rekindle the original conflict. D. Managers are usually unable to redirect resolution toward constructive rather than destructive ends. E. Effective conflict resolution reduces the potential for similar conflicts in the future. D GT Ap
276.
Managers may choose different structural approaches for resolving conflicts between individuals or groups. Which of the following is NOT one of these structural approaches? A. Appealing to superordinate goals that focus attention of the conflicting parties on one mutually desirable end state. B. Using liaison personnel, special task forces, cross-functional teams, or a matrix organization to change interaction patterns and assist in conflict management. C. Making more resources available to everyone. D. Changing the people by replacing or transferring one or more of the conflicting parties. E. Altering the physical environment by rearranging facilities, workspace, and workflows to reduce opportunities for conflict. B GT Ap
277.
Managers may choose different integrative devices for resolving conflicts between individuals or groups. Which of the following is NOT one of these integrative devices? A. Using liaison personnel, special task forces, cross-functional teams, or a matrix organization to change interaction patterns and assist in conflict management. B. Changing reward systems to reduce competition among individuals and groups for rewards. C. Changing the people by replacing or transferring one or more of the conflicting parties. D. Policies and procedures may be used to direct behaviour in appropriate ways. E. Training in interpersonal skills can help prepare people to work more effectively in conflict situations. C GT Ap
Chapter 17: Communication and Interpersonal Skills
713
Conflict Management Styles 278.
In assessing conflict management styles, __________ refers to the desire to satisfy another party’s needs and concerns. A. Assertiveness. B. Best alternative to a negotiated agreement. C. Cooperativeness. D. Alternative dispute resolution. E. Intensity of conflict. C GT Fa
279.
In assessing conflict management styles, __________ refers to the desire to satisfy one’s own needs and concerns. A. Assertiveness. B. Best alternative to a negotiated agreement. C. Cooperativeness. D. Alternative dispute resolution. E. Intensity of conflict. A GT Fa
280.
The conflict management style of __________ involves being uncooperative and unassertive. This style is characterized by downplaying disagreement, withdrawing from the situation, and/or staying neutral at all costs. A. Avoidance. B. Accommodation. C. Competition. D. Compromise. E. Collaboration. A KT Fa
281.
Suppose that a manager responds to a disagreement between subordinates by saying: “I don’t want to get in the middle of your personal disputes.” This manager is using which conflict management style? A. Avoidance. B. Authoritative command. C. Accommodation. D. Collaboration. E. Unassertive. A KT Ap
282.
The conflict management style of __________involves being cooperative and unassertive. This style is characterized by letting the wishes of others rule, and smoothing over or overlooking differences to maintain harmony. A. Avoidance. B. Accommodation. C. Competition. D. Compromise. E. Collaboration. B KT Fa
714
Schermerhorn & Wright: Management
283.
Ken is being cooperative but unassertive with his employees during a conflict situation. He tries to smooth over their differences but it only produces a false sense of harmony among them. Ken is using which conflict management style? A. Avoidance. B. Competition. C. Accommodation. D. Compromise. E. Collaboration. C KT Ap
284.
The conflict management style of __________involves being uncooperative and assertive. This style is characterized by working against the wishes of the other party, engaging in win-lose competition, and/or forcing through the exercise of authority. A. Avoidance. B. Accommodation. C. Competition. D. Compromise. E. Collaboration. C KT Fa
285.
Sheila is assertive and uncooperative in dealing with others during conflict. She goes against the wishes of others and uses her authority to gain compliance. Sheila uses which conflict management style? A. Competition. B. Avoidance. C. Collaboration. D. Accommodation. E. Compromise. A KT Ap
286.
The conflict management style of __________involves being moderately cooperative and assertive. This style is characterized by bargaining for “acceptable” solutions where each party wins a bit and loses a bit. A. Avoidance. B. Accommodation. C. Competition. D. Compromise. E. Collaboration. D KT Fa
287.
Whenever he is involved in a disagreement, Harry tries to partially satisfy both his concerns and the other party’s concerns through bargaining and appropriate trade-offs. Harry uses which conflict management style? A. Avoidance. B. Competition. C. Accommodation. D. Compromise. E. Collaboration. D KT Ap
Chapter 17: Communication and Interpersonal Skills
715
288.
The conflict management style of __________ involves being both cooperative and assertive. This style is characterized by trying to fully satisfy everyone’s concerns by working through differences and finding and solving problems so that everyone gains. A. Avoidance. B. Accommodation. C. Competition. D. Compromise. E. Collaboration. E KT Fa
289.
Len emphasizes cooperation and assertiveness in dealing with conflict situations in his department. Differences are worked through together so that everybody’s concerns are addressed and everyone gains something in the end. Len uses which conflict management style? A. Competition. B. Avoidance. C. Collaboration. D. Accommodation. E. Compromise. C KT Ap
290.
__________ conflict occurs when no one achieves his or her true desire and the underlying reasons for conflict remain unaffected. A. Lose-lose. B. Win-lose. C. Win-win. D. Satisficing. E. Optimizing. A KT Fa
291.
When conflict management results in one party achieving its desires and the other party not achieving its desires, a __________ conflict will occur. A. Win-win. B. Win-lose. C. Satisficing. D. Lose-lose. E. Neutral. B KT Fa
292.
When conflict is resolved to the mutual benefit of all parties, it is called a(n) __________ conflict resolution. A. Win-lose. B. Win-win. C. Neutral. D. Lose-lose. E. Optimizing. B KT Fa
716
Schermerhorn & Wright: Management
293.
Which statement is NOT true regarding win-win conflict? A. It is typically achieved by open confrontation of the issues. B. It permits all relevant issues to be openly discussed. C. It often occurs when tradeoffs are made. D. It occurs when the underlying causes of the conflict are eliminated. E. It is the most preferred result of conflict management. C GT Fa
294.
Which of the following statements about conflict management is/are accurate? A. The avoidance and accommodation conflict management styles create lose-lose conflicts. B. The competing and compromising conflict management styles create win-lose conflicts. C. The collaboration conflict management style creates a win-win conflict. D. All of the above. E. None of the above. D GT Ap
NEGOTIATION (STUDY QUESTION 5) 295.
__________ is the process of making joint decisions when the parties involved have different preferences. A. Coalition. B. Collaboration. C. Negotiation. D. Collective bargaining. E. Management by objectives. C KT Fa
296.
Which of the following statements about negotiation is/are accurate? A. Negotiation is susceptible to conflict. B. Negotiation tests the communication skills of the people involved. C. Negotiation tests the interpersonal skills of the people involved. D. B and C. E. A, B, and C. E GT Ap
Negotiation Goals and Approaches 297.
__________ are concerned with outcomes and the content issues of negotiation. A. Effective goals. B. Process goals. C. Substance goals. D. Relationship goals. E. Performance goals. C GT Fa
Chapter 17: Communication and Interpersonal Skills
717
298.
__________ are concerned with processes and the way people work together during negotiation and how they (and any constituencies they represent) will be able to work together again in the future. A. Process goals. B. Relationship goals. C. Future goals. D. Human resource goals. E. Harmony goals. B GT Fa
299.
A(n) __________ occurs when issues of substance are resolved and working relationships among the negotiating parties are maintained or improved. A. Effective negotiation. B. Resolved negotiation. C. Substantive negotiation. D. Considerate negotiation. E. Union negotiation. A GT Fa
300.
The effectiveness of negotiations can be evaluated with __________. A. Quality. B. Cost. C. Harmony. D. A and B. E. A, B, and C. E GT Fa
301.
The __________ negotiation approach focuses on “win-lose” claims made by each party for certain preferred results. A. Substantive. B. Integrative. C. Principled. D. Distributive. E. Desirable. D KT Fa
302.
The __________ negotiation approach focuses on trying to achieve a “win-win” solution that considers the interests of all the negotiating parties. A. Principled/integrative. B. Unilateral. C. Collaborative. D. Distributive. E. Desirable. A KT Fa
718
Schermerhorn & Wright: Management
Gaining Integrative Agreements 303.
Which of the following is NOT one of the rules of principled negotiation? A. Focus on interests, not positions. B. Generate only a few alternatives before a decision is made. C. Insist that results are based on an objective standard. D. Separate the people from the problem. E. Generate many alternatives before deciding what to do. B GT Fa
304.
Which of the following attitudinal or informational foundations are essential to achieving an integrative agreement? A. Each negotiating party should be willing to trust, share information with, and ask reasonable questions of the other party. B. Each party should know what is really important to them and should find out what is really important to the other party. C. Each party should be willing to sacrifice and compromise. D. Alternatives A and B are correct. E. Alternatives B and C are correct. D GT Fa
305.
A negotiator’s personal __________ addresses the question: “What will I do if an agreement cannot be reached?” A. Plea for negotiated mercy (PNM) B. Plan for political compromise (PPC) C. Best method of saving face (BMSF). D. Best alternative to a negotiated agreement (BATNA). E. Loss prevention plan (LPP). D KT Fa
306.
In a two-party negotiation, the __________ refers to the smallest outcome that one party is willing to accept and the __________ refers to the largest outcome that the other party is prepared to eventually offer. A. Minimum reservation point maximum reservation point. B. Maximum reservation point minimum reservation point. C. Adequate reservation point maximum reservation point. D. Minimum reservation point adequate reservation point. E. Minimum reservation point reservation break point. D GT Fa
307.
The __________ in a classic two-party negotiation is defined as the zone between one party’s minimum reservation point and the other party’s maximum reservation point. A. Mediation gap. B. Bargaining zone. C. Arbitration area. D. Negotiating screen. E. Indifference zone. B KT Fa
Chapter 17: Communication and Interpersonal Skills
719
308.
Which of the following characteristics does NOT correctly describe the conduct of a classic twoparty negotiation? A. A minimum reservation point is a given negotiator’s minimum acceptable outcome. B. A maximum reservation point is a given negotiator’s maximum acceptable outcome. C. A key task for any negotiator is to discover the other party’s reservation point. D. The bargaining zone is the difference between one negotiator’s minimum reservation point and the other party’s maximum reservation point. E. Negotiations can proceed effectively when a negative bargaining zone exists. E GT Fa
309.
All but one of the following statements about the bargaining zone in a classic two-party negotiation are accurate. Which statement is NOT accurate? A. A positive bargaining zone exists whenever the reservation points of the two bargaining parties overlap. B. A negative bargaining zone exists when they do not overlap. C. When a positive bargaining zone exists, there is room for true negotiation. D. When a negative bargaining zone exists, there is room for negotiation. E. A key task for any negotiator is to discover the other party’s reservation point. D GT Fa
Avoiding Negotiation Pitfalls 310.
Which of the following is NOT a negotiation pitfall? A. Too much mediation. B. Falling prey to the myth of the “fixed pie.” C. Nonrational escalation of conflict. D. Overconfidence and ignoring others’ needs. E. Too much “telling” and too little “hearing.” A GT Fa
311.
__________ involves acting on the distributive assumption that in order for one party to gain, the other party must lose. A. Too much mediation. B. Falling prey to the myth of the “fixed pie.” C. Nonrational escalation of conflict. D. Overconfidence and ignoring others’ needs. E. Too much “telling” and too little “hearing.” B GT Fa
312.
__________ occurs when the negotiator becomes committed to previously stated demands and allows needs for “ego” and “face saving” to increase the perceived importance of satisfying those demands. A. Too much mediation. B. Falling prey to the myth of the “fixed pie.” C. Nonrational escalation of conflict. D. Overconfidence and ignoring others’ needs. E. Too much “telling” and too little “hearing.” C GT Fa
720
Schermerhorn & Wright: Management
313.
__________ occurs when the negotiator becomes overconfident, believing that his or her position is the only correct one, and failing to see the needs of the other party and the merits of the other party’s position. A. Too much mediation. B. Falling prey to the myth of the “fixed pie.” C. Nonrational escalation of conflict. D. Overconfidence and ignoring others’ needs. E. Too much “telling” and too little “hearing.” D GT Fa
314.
__________ occurs when the negotiating parties don’t make themselves understood to each other and they fail to listen sufficiently well to understand what each other is saying. A. Too much mediation. B. Falling prey to the myth of the “fixed pie.” C. Nonrational escalation of conflict. D. Overconfidence and ignoring others’ needs. E. Too much “telling” and too little “hearing.” E GT Fa
Dispute Resolution 315.
__________ involves a neutral third party who tries to improve communication between negotiating parties and keep them focused on relevant issues. A. Distributive negotiations. B. Integrative negotiations. C. Mediation. D. Arbitration. E. Alternative dispute resolution. C KT Fa
316.
__________ involves a neutral third party who acts as a “judge” and issues a binding decision to resolve a dispute. A. Distributive negotiations. B. Integrative negotiations. C. Mediation. D. Arbitration. E. Alternative dispute resolution. D KT Fa
317.
__________ utilizes mediation and or arbitration but only after direct attempts to negotiate agreements between the conflicting parties have failed.
A. Process value analysis. B. Alternative dispute resolution. C. Interpersonal compromise. D. A and C. E. A, B, and C. B GT Fa
Chapter 17: Communication and Interpersonal Skills 318.
721
In the alternative dispute resolution process, a(n) __________ is a designated neutral third party who listens to complaints and disputes. A. Collaborator. B. Compromiser. C. Ombudsperson. D. Win-win administrator. E. Conflict leader. C GT Fa
Ethical Issues in Negotiation 319.
In conducting negotiations, which of the following ethical considerations come into play? A. Managers and anyone else involved in negotiations should maintain high ethical standards even when it is a dynamic and challenging situation. B. The motivation to behave unethically can arise from undue emphasis on the profit motive or a sense of competition. C. When unethical behaviour occurs in negotiations, the persons involved sometimes attempt to rationalize or explain it away. D. All of the above. E. None of the above. D GT Fa
320.
Acceptance of unethical negotiating behaviour or the rationalization of it can result in which of the following outcomes? A. Short-run gains for the offending negotiator. B. Long-run losses for the offending negotiator. C. Losing trust in the offending negotiator. D. Seeking revenge against the offending negotiator. E. All of these are likely outcomes of accepting or rationalizing unethical negotiating behaviour. E GT Fa
Essay Questions 321.
Explain why understanding the communication process and having communication skills are important for managerial success. Suggested Answer: Understanding the communication process and having communication skills are important for managerial success because a significant portion of managers experience at least some difficulty in dealing with communications and interpersonal relations. The ability to communicate well, both orally and in writing, is a critical leadership skill. Communication is essential for establishing and maintaining interpersonal relationships, listening to others, gaining information, handling conflict, negotiating successfully, and leading successfully.
322.
What are the fundamental barriers to effective communication?
722
Schermerhorn & Wright: Management Suggested Answer: The major barriers to effective communication include: a poor choice of channels, poor written or oral expression; failure to recognize nonverbal signals; physical distractions; and status effects. Written channels are acceptable for simple and easy-to-convey messages, for those that require extensive dissemination quickly, and for conveying formal policy or authoritative directives. Oral channels work best for complex and difficult-to-convey messages. Oral channels also work well where immediate feedback to the sender is valuable. Finally, oral channels can create a supportive ⎯ even inspirational ⎯ emotional climate. Communication ⎯ either written or oral ⎯ will be effective only to the extent that the sender expresses a message in a way that can be clearly understood by the receiver. In nonverbal communication, a mixed message occurs when a person’s words communicate one message while his/her actions, body language, appearance, or situational use of interpersonal space communicate something else. Physical distractions such as interruptions from telephone calls, drop-in visitors, a lack of privacy, etc. can interfere with the effectiveness of a communication attempt. Status effects involve noise that occurs when an organization’s hierarchy of authority creates a barrier to effective communications.
323.
Explain how active listening and constructive feedback skills can help people to become more effective members of teams. Suggested Answer: To be effective team members, people must be able to interact with other individuals in a constructive fashion. Team members must be able to address problems and deficiencies within the team as well as be able to capitalize on the willingness and abilities of the team members to collectively pursue their tasks. The potential for dealing effectively with both the “positive” and the “negative” aspects of interpersonal relations is enhanced through team members’ development of their skills at listening actively and providing constructive feedback.
324.
Explain the five different conflict management styles and their potential implications for actually resolving conflict situations. Suggested Answer: People’s conflict management styles reflect different combinations of cooperative and assertive behaviour. The five styles of conflict management that result from different combinations of cooperativeness and assertiveness are the following: • • • • •
Avoidance –– being uncooperative and unassertive; downplaying disagreement, withdrawing from the situation, and/or staying neutral at all costs. Accommodation –– being cooperative but unassertive; letting the other party’s wishes rule; smoothing over or overlooking differences to maintain harmony. Competition –– being uncooperative but assertive; working against the wishes of the other party, engaging in win-lose competition, and/or forcing through the exercise of authority. Compromise –– being moderately cooperative and assertive; bargaining for “acceptable” solutions where each party wins a bit and loses a bit. Collaboration –– being both cooperative and assertive; trying to satisfy everyone’s concerns fully by working through differences, finding and solving problems so everyone gains.
Chapter 17: Communication and Interpersonal Skills
723
The implications for actually resolving conflicts may be viewed in the context of loselose conflict, win-lose conflict, and win-win conflict. Lose-lose conflict occurs when no one achieves his or her true desire and the underlying reasons for conflict remain unaffected. This is common when conflict is managed by avoidance or accommodation. Win-lose conflict occurs when each party strives to gain at the other’s expense. This occurs with competition and compromise. Win-win conflict occurs when issues are resolved to the mutual benefit of all conflicting parties. Win-win conflict occurs with collaboration. 325.
Why are negotiating skills useful for managers? What should a manager do to become an effective negotiator? Suggested Answer: Managers will inevitably be in positions where there are disagreements about courses of action to pursue or differences of opinion about what results are desired. In these types of situations, negotiation comes into play. In order to be effective in dealing with such situations, managers need to be effective negotiators. Successful negotiation occurs when issues of substance (i.e., the “content” issues) are resolved and working relationships among the negotiating parties are maintained or even improved in the process. A manager can become a skilled or effective negotiator by learning to follow the rules of principled negotiation, which include the following: separate the people from the problem; focus on interests, not on positions; generate many alternatives before deciding what to do; and insist that results are based on some objective standard. A skilled negotiator also recognizes and avoids the following common negotiation pitfalls: falling prey to the myth of the fixed pie; nonrational escalation of conflict; overconfidence and ignoring others’ needs; and too much telling and too little hearing.
Chapter 18:
CHANGE LEADERSHIP True/False Questions CHAPTER INTRODUCTION 1.
Intellectual capital, knowledge management, and learning organizations are increasingly important in the modern business world. T GT Fa
2.
The new economy has created tremendous turmoil but few genuine opportunities. F GT Fa
3.
Most traditional organizations have realized that they must change to survive. T GT Fa
4.
Many organizations and their leaders are slow in responding to change. T GT Fa
5.
Creating positive change in organizations is not an easy task because change involves complexity, uncertainty, anxiety, and risk. T GT Fa
6.
Leading organizational change takes great understanding, discipline, and leadership commitment to creativity and innovation. T GT Fa
STRATEGIC LEADERSHIP AND INNOVATION (STUDY QUESTION 1) Strategic Leadership 7.
Learning organizations are ones that mobilize people, values, and systems to achieve continuous change and performance improvements driven by the lessons of experience. T KT Fa
8.
Multidimensional management refers to the “ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization.” F GT Fa
9.
Strategic leadership refers to the “ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization.”
725
726
Schermerhorn & Wright: Management T
10.
GT
Fa
The components of strategic leadership include: determining the organization’s purpose or vision; exploiting and maintaining the organization’s core competencies; developing the organization’s human capital; establishing balanced organizational controls; sustaining an effective organizational culture; and emphasizing and displaying ethical practices T GT Fa
Creativity and Innovation 11.
Invention is the generation of a novel idea or unique approach to solving problems or crafting opportunities. F KT Fa
12.
Invention is the process of creating new ideas and putting them into practice. F KT Fa
13.
Product innovations result in better ways of doing things; process innovations result in the creation of new or improved goods and services. F KT Fa
14.
Process and product innovations support invention and application. T GT Fa
15.
Leadership responsibilities for the innovation process, as reflected in Gary Hamel’s wheel of innovation, include imagining, designing, experimenting, assessing, and scaling. T GT Fa
16.
Within the context of Gary Hamel’s wheel of innovation, imagining involves thinking about new possibilities, making discoveries by ingenuity or communication with others, and extending existing ways. T GT Fa
17.
Within the context of Gary Hamel’s wheel of innovation, scaling concerns testing ideas in concept; discussing them with peers, customers, clients, or technical experts; and building initial models, prototypes, or samples. F GT Fa
18.
Within the context of Gary Hamel’s wheel of innovation, experimenting refers to examining practicality and financial value through experiments and feasibility studies. T GT Fa
19.
Within the context of Gary Hamel’s wheel of innovation, assessing involves identifying strengths and weaknesses, potential costs and benefits, potential markets or applications, and making constructive changes. T GT Fa
Chapter 18: Change Leadership
727
20.
Within the context of Gary Hamel’s wheel of innovation, designing involves gearing up and implementing new processes; putting to work what has been learned; and commercializing new products or services. F GT Fa
21.
Commercializing innovation is the process of turning new ideas into products or processes that can increase profits through greater sales or reduced costs. T KT Fa
22.
Idea creation, initial experimentation, feasibility determination, and final application are the four steps in the product development process. T GT Fa
23.
Discovering a potential product or a way to modify an existing product involves the feasibility determination step of the product development process. F GT Fa
24.
Initial experimentation is the stage of the product development process in which ideas are shared with others and prototypes are tested. T GT Fa
25.
Consideration of the practicality and financial viability of a new product or service indicates that a company is in the final application stage of the product development process. F GT Fa
26.
The feasibility determination step of the product development process involves the commercialization of a new product for sale to customers or clients. F GT Fa
Characteristics of Innovative Organizations 27.
With respect to corporate strategy and culture, highly innovative organizations are willing to take risks, accept failure, emphasize an entrepreneurial spirit, and expect innovation. T GT Fa
28.
Highly innovative organizations have organic structures that rely on lateral communications as well as cross-functional teams and task forces. T GT Fa
29.
Highly innovative organizations have top managers who understand the innovation process, tolerate criticism and differences of opinion, take all possible steps to keep goals clear, and maintain the pressure to succeed. T GT Fa
30.
Highly innovative organizations fulfill five critical innovation roles: idea generators, information gatekeepers, product champions, project managers, and innovation leaders. T GT Fa
728
Schermerhorn & Wright: Management
ORGANIZATIONAL CHANGE (STUDY QUESTION 2) Change Leadership 31.
A change leader is a change agent who takes leadership responsibility for changing the existing pattern of behaviour of another person or social system. T KT Fa
32.
Change leaders are threatened by change; status quo managers are confident of their ability. F GT Fa
33.
Change leaders are willing to take risks; status quo managers are bothered by uncertainty. T GT Fa
34.
Change leaders prefer predictability; status quo managers seize opportunities. F GT Fa
35.
Change leaders expect surprise; status quo managers support the current state of affairs. T GT Fa
36.
Change leaders make things happen; status quo managers wait for things to happen. T GT Fa
Models of Change Leadership 37.
Top-down change occurs when senior managers initiate changes with the goal of having a comprehensive impact on the organization and its performance capabilities. T KT Fa
38.
Top-down change may be perceived as insensitive to the needs of lower-level personnel and consequently may encounter excessive resistance. T GT Fa
39.
Top-down change relies on the willingness of middle-level and lower-level managers to actively support top-management initiatives. T GT Fa
40.
Top-down change can be implemented effectively through the use of force because it is likely to produce substantial commitment to change. F GT Fa
41.
Bottom-up change occurs when the initiatives for change come from any and all parts of the organization, not just top management. T KT Fa
42.
Bottom-up change is not particularly important for organizational innovation. F GT Fa
Chapter 18: Change Leadership
729
43.
Bottom-up change facilitates the adaptation of operations and technologies to the changing work environment. T GT Fa
44.
Bottom-up change requires the approval and close oversight of top-level managers. F GT Fa
45.
The most successful and enduring change leadership is that which can harness the advantages of both top-down and bottom-up change. T GT Fa
46.
Bottom-up change initiatives are necessary to build institutional capability for sustainable change and organizational learning. T GT Fa
47.
Top-down change may be needed to break traditional patterns and implement difficult economic adjustments. T GT Fa
Transformational and Incremental Change 48.
Unplanned change is change that occurs spontaneously in organizations, largely in response to unanticipated events. T GT Fa
49.
Incremental change responds to events as or after they occur. F KT Fa
50.
Planned change takes steps to best align the organization with anticipated future challenges. T KT Fa
51.
The discrepancy between the desired and actual state of affairs is the change differential. F KT Fa
52.
Transformational change is a type of planned change that results in a major and comprehensive redirection of the organization. T KT Fa
53.
To lead transformational change, a change agent should establish a sense of urgency for change; create and communicate a change vision; celebrate short-term “wins” and recognize those who help; and stay with it, keep the message consistent, champion the vision. T MN Fa
54.
To lead transformational change, a change agent should form a powerful coalition to lead the change, empower others to move change forward, build on success, and align people and systems with new ways. T MN Fa
730 55.
Schermerhorn & Wright: Management Reactive change is a type of planned change that bends and nudges existing systems and practices to better align them with emerging problems and opportunities. F KT Fa
Forces and Targets for Change 56.
External forces for change in contemporary organizations include globalization and market competition, local economic conditions, governmental laws and regulations, technological developments, market trends, and social forces and values. T GT Fa
57.
External forces for change can lead to significant changes in one or more parts of the organizational system. T GT Fa
58.
Internal forces for change arise when a change in one part of the organizational system creates the need for change in another part of the system T GT Fa
59.
A change in one part of the organization is unlikely to create the need for change in another part of the organization. F GT Fa
60.
Internal forces for change are not as significant to the organization as external forces. F GT Fa
61.
Once an internal force for change has been addressed, it will not have an impact on the organization again. F GT Fa
62.
The organizational targets for change include tasks, people, structure, technology, and culture. T GT Fa
63.
A common organizational target for change is the nature of work as represented by organizational mission, objectives, and strategy; and the job designs for individuals and groups. T GT Fa
64.
A common organizational target for change involves the attitudes and competencies of the employees and the human resource systems that support them. T GT Fa
65.
A common organizational target for change concerns the value system for the organization as a whole and the norms guiding individual and group behaviour. T GT Fa
66.
A common organizational target for change involves the operations and information technology used to support job designs, arrange workflows, and integrate people and machines in systems. T GT Fa
Chapter 18: Change Leadership 67.
731
A common organizational target for change is the configuration of the organization as a complex system, including its design features and lines of authority and communications. T GT Fa
LEADING PLANNED CHANGE (STUDY QUESTION 3) 68.
Human nature always stands at the heart of the fact that change is a complicated phenomenon. T GT Fa
69.
People do not act habitually; more often than not, they act in random and erratic ways. F GT Fa
70.
People may not want to change even when conditions require it; consequently, managers and change agents need to deal with people’s tendencies to resist change. T GT Fa
Phases of Planned Change 71.
The unfreezing, changing, and refreezing phases are all parts of the planned-change process. T GT Fa
72.
Unfreezing is the change phase in which a situation is prepared for change and felt needs for change are developed. T KT Fa
73.
Unfreezing can be accomplished by creating acceptance and continuity for the new behaviours, providing necessary resource support, and using performance-contingent rewards and positive reinforcement. F GT Fa
74.
Changing is the phase in which something new takes place in the system, and change is actually implemented. T KT Fa
75.
Changing, the second phase of Lewin’s planned organizational change model, can be implemented by identifying new, more effective ways of behaving; choosing appropriate changes in tasks, people, culture, technology, and/or structure; and taking action to put changes in tasks, people, culture, technology, and/or structure into place. T GT Fa
76.
Refreezing is the phase of stabilizing the change and creating the conditions for its long-term continuity. T KT Fa
77.
Refreezing can be accomplished by establishing a good relationship with the people involved, helping peers realize that present behaviours are not effective, minimizing expressed resistance to change, and helping subordinates realize that present behaviours are not effective. F GT Fa
732
Schermerhorn & Wright: Management
Change Strategies 78.
A force-coercion strategy for change involves the use of formal authority and/or rewards or punishments. T KT Fa
79.
A change agent who uses a force-coercion strategy believes that people are basically motivated by self-interest and what the situation offers in terms of potential gains or losses. T GT Fa
80.
A change agent who uses a force-coercion strategy tries to identify people’s vested interests and then apply pressure to those interests. T GT Fa
81.
A change agent who uses a force-coercion strategy avoids political alliances. F GT Fa
82.
Political manoeuvring is the version of the force-coercion change strategy that is being used when the change agent takes direct and unilateral action to command that change occurs. F GT Fa
83.
Informational manipulation is a version of the force-coercion change strategy wherein the change leader works indirectly to gain special advantage over other persons in the attempt to make them change. F GT Fa
84.
A manager who uses the rational persuasion change strategy relies on special knowledge, empirical data, and rational argument to bring about change. T KT Fa
85.
Change agents who use the rational persuasion change strategy believe that people are guided by reason in their actions and decision making, and they use information and facts to communicate the desirability of change. T GT Fa
86.
Change agents who use the rational persuasion change strategy believe they must convince others of the cost-benefit value of the change. T GT Fa
87.
A shared power change strategy engages people in a collabourative process of identifying values, assumptions, and goals from which support for change will naturally emerge. T KT Fa
88.
The change agent who relies on the shared power strategy recognizes that people have varied needs and complex motivations and understands change in the context of attitudes, values, skills, and significant relationships. T GT Fa
Chapter 18: Change Leadership 89.
733
Change agents who rely on the shared power strategy believe that people behave as they do because of sociocultural norms and commitments to others’ expectations, and they are sensitive to the way group pressures can support or inhibit change. T GT Fa
Resistance to Change 90.
Resistance to change can be viewed as feedback that an informed change agent can use constructively to modify a planned change to better fit situational needs and goals. T GT Ap
91.
Resistance to change must be stopped immediately because it can destroy the planned changed effort. F GT Ap
92.
Resistance change is best ignored when making changes. F GT Ap
93.
Once resistance to change occurs, the change itself will surely fail. F GT Ap
94.
A manager uses education and communication in order to overcome employee resistance to change. This means that the manager will make use of discussions, presentations, or demonstrations to groups of employees in order to inform people of the proposed change. T GT Fa
95.
A manager who uses participation and involvement in order to overcome employee resistance to change will allow others to contribute ideas and help design and implement the change. T GT Fa
96.
The facilitation and agreement approach for overcoming resistance to change involves providing encouragement and training, actively listening to problems, and helping resistors to deal with performance pressures. F GT Fa
97.
Facilitation and support involves offering incentives that appeal to actual or potential resistors, or making trade-offs in exchange for assurance that some desired change would not be blocked. F GT Fa
98.
Attempting covert influence by selectively providing information and structuring events in favour of the desired change is the manipulation and co-optation strategy of overcoming resistance to change. T GT Fa
99.
Threatening and/or reminding employees of undesirable consequences if they do not agree to proposed changes is the explicit and implicit coercion approach to overcoming resistance to change. T GT Fa
734 100.
Schermerhorn & Wright: Management People will resist planned change due to fear of the unknown, loss of confidence, loss of control, and loss of face; but not because of lack of purpose, poor timing, work overload, or disrupted habits. F MN Fa
Challenges of Technological Change 101.
Technological change is most advantageous to organizations when there is a good fit with work needs, practices, and people. F GT Fa
102.
Technological change is most advantageous to organizations when unexpected events occur. F GT Fa
103.
Technological change may best be approached as an ongoing process that will inevitably require improvisation as things are being implemented. T GT Fa
104.
In implementing new technology, the change agent should continually gather and process information relating to the change, but should insist attempts to customize the new technology for needs of the local situation. F GT Fa
ORGANIZATION DEVELOPMENT (STUDY QUTSION 4) 105.
Organization development is a comprehensive approach to planned organizational change that involves the application of behavioural science in a systematic and long-range effort to improve organizational effectiveness. T KT Fa
106.
Organization development is an important way for leaders to share power in order to advance planned change agendas, foster creativity and innovation, and continuously improve organizational performance. T GT Fa
Organization Development Goals 107.
The outcome goals of organizational development focus on the way people work together. F GT Fa
108.
The process goals of organizational development focus on how tasks are accomplished. F GT Fa
109.
Thinking of organizational development as “planned change plus” means that change is accomplished in such a way that organization members are capable of self-renewal and continued development. T GT Fa
Chapter 18: Change Leadership
735
How Organization Development Works 110.
The first step in the organizational development process is establishing a working relationship with the client system. T GT Fa
111.
The diagnosis stage of the organization development process corresponds to the unfreezing phase of Lewin’s change model. T GT Fa
112.
The intervention stage of the organization development process corresponds to the changing phase of Lewin’s change model. T GT Fa
113.
The evaluation stage of the organization development process corresponds to the unfreezing phase of Lewin’s change model. T GT Fa
114.
Achieving a terminal relationship within the organization development process occurs when the consultant leaves the client. T GT Fa
115.
Operations analysis is a collabourative process of collecting data, using it for action planning, and evaluating the results. F KT Fa
116.
An organization is using the action research process when management perceives a performance gap and proceeds to analyze the situation via a process of systematically collecting data, feeding it back to the organization members for action planning, and evaluating results by collecting more data and repeating the process as necessary. T KT Ap
Organization Development Interventions 117.
An organization development intervention is an activity initiated by change agents or managers to directly facilitate the change process. T KT Fa
118.
Individual organization development interventions generally recognize that the need for personal growth and development will be best satisfied in a supportive and challenging work environment. T GT Fa
119.
Individual organization development interventions generally recognize that people are not likely to assume responsibility for their actions. F GT Fa
120.
Individual organization development interventions generally recognize that expecting a positive outcome or contribution from individuals is not likely if they are asked to change. F GT Fa
736
Schermerhorn & Wright: Management
121.
Management training is an unstructured session where participants learn interpersonal skills and increased sensitivity to other people. F GT Fa
122.
Sensitivity training involves structured educational opportunities for developing important managerial skills and competencies. F GT Fa
123.
Job redesign focuses on structured interactions to clarify and negotiate role expectations among people who work together. F GT Fa
124.
Role negotiation involves realigning task components to better fit the needs and capabilities of the individual. F GT Fa
125.
Career planning provides structured advice and discussion sessions to help individuals plan career paths and programs of personal development. T GT Fa
126.
Team interventions are based upon the beliefs that teams provide important means for helping people satisfy important needs and that improved collabouration within and among teams can improve organizational performance. T GT Fa
127.
Team building utilizes structured experiences to help team members set goals, improve interpersonal relations, and become a better functioning team. T GT Fa
128.
Process consultation uses third-party observation and advice on critical team processes. T GT Fa
129.
Inter-group team building involves structured experiences to help two or more teams set shared goals, improve inter-group relations, and become better coordinated. T GT Fa
130.
Organization-wide organization development interventions are based on the beliefs that a change in one part of the system will affect other parts, and that people, systems, structures, technology, and organizational culture can be brought together in productive and satisfying working combinations. T GT Fa
131.
Survey feedback is a comprehensive and systematic data collection method to identify attitudes and needs, analyze results, and plan for constructive action. T GT Fa
132.
Confrontation meetings are one-day intensive, structured meetings to gather data on workplace problems and plan for constructive actions. T GT Fa
Chapter 18: Change Leadership
737
133.
Structural redesign involves realigning the organization structure to meet the needs of environmental and contextual forces. T GT Fa
134.
Management by objectives involves formalizing goal setting throughout the organization to link individual, group, and organizational objectives. T GT Fa
STRESS AND STRESS MANAGEMENT (STUDY QUESTION 5) 135.
The state of tension experienced by people who face extraordinary demands, constraints, or opportunities is called stress. T KT Fa
136.
Job-related stress goes hand-in-hand with the dynamic and sometimes uncertain nature of the managerial role. T KT Fa
Sources of Stress 137.
Stressors are things that cause stress and originate in work, personal, and nonwork situations. T GT Fa
138.
Work factors that can cause stress include excessively high or low task demands, role conflicts or ambiguities, poor interpersonal relations, and career progress that is too slow or too fast. T GT Fa
139.
Mistaken identity is the work-related stress syndrome where performance expectations are impossible or the support is totally inadequate to the task. F GT Fa
140.
Set up to fail is the work-related stress syndrome where the individual ends up in a job that doesn’t match his/her talents or that he/she doesn’t like. F GT Fa
141.
The Type B personality is high in achievement orientation, impatience, and perfectionism. F KT Fa
142.
A person with the Type A personality does several things at once; feels guilty when relaxing; tries to schedule more in less time; and moves, walks, and eat rapidly. T GT Fa
143.
Family events, personal economics, and personal affairs are nonwork factors that may influence the stress an individual experiences at work. T GT Fa
738
Schermerhorn & Wright: Management
Consequences of Stress 144.
Constructive stress acts in a positive way to increase effort, stimulate creativity, and encourage diligence in one’s work. T KT Fa
145.
Destructive stress impairs the performance of an individual and is dysfunctional for the individual and/or the organization. T KT Fa
146.
A form of physical and mental exhaustion that can be incapacitating, both personally and with respect to one’s work, is workplace rage. F KT Fa
147.
A form of physical and mental exhaustion that can be incapacitating, both personally and with respect to one’s work, is job burnout. T KT Fa
148.
Excessively high or destructive stress in the workplace can lead to reduced performance, absenteeism, errors, and accidents. T GT Fa
149.
Eustress is overtly aggressive behaviour toward co-workers and the work setting in general. F GT Fa
150.
Workplace rage is overtly aggressive behaviour toward co-workers and the work setting in general. T GT Fa
151.
Destructive stress results from intense or long-term stress that overloads or breaks down a person’s physical and mental systems. T GT Ap
152.
Excessive stress is unlikely to lead to overtly aggressive behaviour toward co-workers and the work setting in general. F GT Ap
153.
Hypertension, substance abuse, overeating, and depression are among the health problems that can be influenced by stress. T GT Fa
Stress Management Strategies 154.
People are more creative when they feel well, so managers should keep stress at comfortable levels. T GT Ap
155.
Poor health due to workplace stress may cause employees to reduce their contribution to the organization. T GT Ap
Chapter 18: Change Leadership
739
156.
People who are under a lot of stress at work will work harder in order to stay competitive with other employees, so the manager actually benefits by keeping stress levels high. F GT Ap
157.
For humanitarian reasons alone, managers should enhance the employees’ work setting and reduce stress-producing situations as much as possible. T GT Ap
158.
The work factors that have the greatest potential to cause excessive stress include role conflicts role ambiguities, and role overloads. T GT Ap
159.
Personal wellness is a stress management strategy that includes taking individual responsibility for maintaining one’s health through a disciplined approach to such things as smoking, alcohol or drug use, maintaining a nutritious diet, and engaging in a regular exercise and physical fitness program. T KT Fa
160.
Personal wellness is an important fringe benefit in nearly all companies. F GT Fa
161.
People who aggressively maintain personal wellness are better prepared to deal with the inevitable stresses of work and work-life conflicts. T GT Fa
Multiple Choice Questions CHAPTER INTRODUCTION 162.
Which of the following statements does NOT provide an accurate description of the nature and/or impact of change in contemporary businesses? A. Intellectual capital, knowledge management, and learning organizations are increasingly important in the modern business world. B. The new economy has created tremendous turmoil but few genuine opportunities. C. Most traditional organizations have realized that they must change to survive. D. Increasingly, successful companies have cultures that thrive on change. E. Many organizations are slow in responding to change. B GT Fa
163.
Which of the following statements does NOT provide an accurate description of the nature and/or impact of change in today’s organizations? A. Most leaders are quick in responding to change. B. Creating positive change in organizations is not an easy task. C. Change involves complexity, uncertainty, anxiety, and risk. D. Leading organizational change takes great understanding, discipline, and leadership commitment to creativity and innovation. E. Innovation is a primary source of competitive advantage in the modern business world. A GT Fa
740
Schermerhorn & Wright: Management
STRATEGIC LEADERSHIP AND INNOVATION (STUDY QUESTION 1) Strategic Leadership 164.
__________ are ones that mobilize people, values, and systems to achieve continuous change and performance improvements driven by the lessons of experience. A. Learning organizations. B. Manufacturing organizations. C. Service organizations. D. Organic organizations. E. Adaptive organizations. A KT Fa
165.
__________ refers to the “ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization.” A. Team leadership. B. Strategic leadership. C. Organizational leadership. D. Organization development. E. Multidimensional management. B GT Fa
166.
The components of strategic leadership include all of the following EXCEPT: A. Shaping the organization’s environment. B. Determining the organization’s purpose or vision. C. Exploiting and maintaining the organization’s core competencies. D. Sustaining an effective organizational culture. E. Establishing balanced organizational controls. A GT Fa
167.
Which of the following is NOT a component of strategic leadership? A. Determining the organization’s purpose or vision. B. Developing the organization’s human capital. C. Establishing powerful reward systems. D. Sustaining an effective organizational culture. E. Emphasizing and displaying ethical practices. C GT Fa
Creativity and Innovation 168.
__________ is the generation of a novel idea or unique approach to solving problems or crafting opportunities. A. Creativity. B. Invention. C. Entrepreneurship. D. Intrapreneurship. E. Innovation. A KT Fa
Chapter 18: Change Leadership
741
169.
__________ is the process of creating new ideas and putting them into practice. A. Creativity. B. Invention. C. Entrepreneurship. D. Intrapreneurship. E. Innovation. E KT Fa
170.
All of the following statements correctly describe the innovation process EXCEPT: A. Process innovations result in better ways of doing things. B. Product innovations result in the creation of new or improved goods and services. C. Process and product innovations support invention. D. Process and product innovations support application. E. Creativity is not essential for innovation. E GT Fa
171.
__________ result in better ways of doing things. A. Product innovations. B. Business changes. C. Process innovations. D. Experiments. E. Design changes. C KT Fa
172.
_______ result in the creation of new or improved goods and services. A. Product innovations. B. Business changes. C. Process innovations. D. Experiments. E. Design changes. A KT Fa
173.
Which of the following is NOT a leadership responsibility for the innovation process? A. Imagining. B. Deciding. C. Experimenting. D. Assessing. E. Scaling. B GT Fa
174.
Leadership responsibilities for the innovation process include all of the following EXCEPT: A. Thinking about new possibilities; making discoveries by ingenuity or communication with others; extending existing ways. B. Testing ideas in concept; discussing them with peers, customers, clients, or technical experts; building initial models, prototypes, or samples. C. Examining practicality and financial value through experiments and feasibility studies. D. Identifying strengths and weaknesses, potential costs and benefits, potential markets or applications, and making constructive changes. E. Recruiting motivated and competent people to market new products and services. E GT Fa
742
Schermerhorn & Wright: Management
175.
__________ is the process of turning new ideas into products or processes that can increase profits through greater sales or reduced costs. A. Product development. B. Process value analysis. C. Commercializing innovation. D. Marketing research. E. Supply chain management. C KT Fa
176.
Which of the following is NOT one of the four steps in the product development process? A. Initial experimentation. B. Final application. C. Feasibility determination. D. Feasibility planning. E. Idea creation. D GT Fa
177.
Discovering a potential product or a way to modify an existing product involves the __________ step of the product development process. A. Initial experimentation. B. Feasibility screening. C. Idea creation. D. Feasibility determination. E. Final application. C GT Fa
178.
__________ is the stage of the product development process in which ideas are shared with others and prototypes are tested. A. Idea creation. B. Initial experimentation. C. Feasibility determination. D. Feasibility screening. E. Final application. B GT Fa
179.
Consideration of the practicality and financial viability of a new product or service indicates that a company is in which stage of the product development process? A. Initial experimentation. B. Final application. C. Feasibility determination. D. Feasibility screening. E. Idea creation. C GT Fa
Chapter 18: Change Leadership 180.
743
The __________ step of the product development process involves the commercialization of a new product for sale to customers or clients. A. Final application. B. Initial experimentation. C. Feasibility determination. D. Feasibility screening. E. Idea creation. A GT Fa
Characteristics of Innovative Organizations 181.
Which of the following is NOT one of the ways in which highly innovative organizations support creativity and entrepreneurship? A. Job design. B. Corporate culture and strategy. C. Organization structure. D. Organizational staffing. E. Top management. A GT Fa
182.
With respect to corporate strategy and culture, highly innovative organizations do all of the following EXCEPT: A. Are willing to take risks. B. Stress extremely challenging goals. C. Accept failure. D. Emphasize an entrepreneurial spirit. E. Expect innovation. B GT Fa
183.
Suppose an organization has an organic structure that relies on lateral communications, crossfunctional teams, and task forces. This organization would be one that is seeking to __________. A. Maintain the status quo. B. Innovate very little. C. Innovate to a moderate degree. D. Be highly innovative. E. Innovate but doesn’t know how to do it. D GT Fa
184.
Highly innovative organizations have top managers who do all of the following EXCEPT: A. Understand the innovation process. B. Tolerate criticism and differences of opinion. C. Create conflict to stimulate creativity. D. Take all possible steps to keep goals clear. E. Maintain the pressure to succeed. C GT Fa
744
Schermerhorn & Wright: Management
185.
In highly innovative organizations, different critical innovation roles need to be fulfilled. Which of the following is NOT one of these critical innovation roles? A. Idea generators. B. Information gatekeepers. C. Product champions. D. Project managers. E. Innovation followers. E GT Fa
186.
In highly innovative organizations, certain key roles must be fulfilled. These include all of the following roles EXCEPT: A. Those who serve as links between people and groups. B. Those who perform technical functions on the innovation project. C. Those who advocate the status quo and some sense of stability. D. Those who create new insights from internal discoveries or external awareness. E. Those who encourage, sponsor, and coach others to keep innovation values and goals in place. C GT Fa
ORGANIZATIONAL CHANGE (STUDY QUESTION 2) Change Leadership 187.
A __________ is a change agent who takes leadership responsibility for changing the existing pattern of behaviour of another person or social system. A. Change leader. B. Behavioural leader. C. Managerial agent. D. Social worker. E. Social system manager. A KT Fa
188.
A part of every manager’s job is to act as a __________ in the workplace. A. Behavioural agent. B. Managerial agent. C. Change agent. D. Social change manager. E. Social system manager. C GT Fa
189.
Which of the following statements does NOT accurately contrast change leadership with status quo management? A. Change leaders are threatened by change; status quo managers are confident of their ability. B. Change leaders are willing to take risks; status quo managers are bothered by uncertainty. C. Change leaders seize opportunities; status quo managers prefer predictability. D. Change leaders expect surprise; status quo managers support the current state of affairs. E. Change leaders make things happen; status quo managers wait for things to happen. A GT Fa
Chapter 18: Change Leadership
745
Models of Change Leadership 190.
__________ occurs when senior managers initiate changes with the goal of having a comprehensive impact on the organization and its performance capabilities. A. Top-down change. B. Bottom-up change. C. Incremental change. D. Outside-in change. E. Inside-out change. A KT Fa
191.
Top-down change is initiated and directed by top management. It usually includes all of the following implications EXCEPT: A. Top-down change may be perceived as insensitive to the needs of lower-level personnel. B. Top-down change may encounter excessive resistance. C. Top-down change relies on the willingness of middle-level and lower-level managers to actively support top-management initiatives. D. Top-down change can be implemented effectively through the use of force. E. Top-down change may fail due to insufficient commitment of lower-level employees to changing. D GT Fa
192.
__________ occurs when the initiatives for change come from any and all parts of the organization, not just top management. A. Top-down change. B. Bottom-up change. C. Incremental change. D. Outside-in change. E. Inside-out change. B KT Fa
193.
The implications of bottom-up change include all of the following EXCEPT: A. Initiatives for change come from people throughout the organization. B. Bottom-up change is essential for organizational innovation. C. Change is made possible through empowerment, involvement, and participation. D. Bottom-up change facilitates the adaptation of operations and technologies to the changing work environment. E. Bottom-up change requires the approval and close oversight of top-level managers. E GT Fa
194.
Which of the following descriptions of integrated change leadership is/are accurate? A. The most successful and enduring change leadership is that which can harness the advantages of both top-down and bottom-up change. B. Bottom-up change initiatives are necessary to build institutional capability for sustainable change and organizational learning. C. Top-down change may be needed to break traditional patterns and implement difficult economic adjustments. D. B and C. E. A, B, and C. E GT Fa
746
Schermerhorn & Wright: Management
Transformational and Incremental Change 195.
__________ is change that occurs spontaneously in organizations, largely in response to unanticipated events. A. Performance change. B. Crisis-induced change. C. Unplanned change. D. Innovative change. E. Disruptive change. C GT Fa
196.
__________ responds to events as or after they occur. A. Reactive change. B. Planned change. C. Transactional change. D. Transformational change. E. Incremental change. A KT Fa
197.
__________ takes steps to best align the organization with anticipated future challenges. A. Reactive change. B. Planned change. C. Transactional change. D. Transformational change. E. Incremental change. B KT Fa
198.
The discrepancy between the desired and actual state of affairs is the __________. A. Unexpected result. B. Performance gap. C. Unplanned deficiency. D. Planning differential. E. Change differential. B KT Fa
199.
__________ is a type of planned change that results in a major and comprehensive redirection of the organization. A. Reactive change. B. Planned change. C. Transactional change. D. Transformational change. E. Incremental change. D KT Fa
Chapter 18: Change Leadership
747
200.
Which of the following statements provide useful lessons regarding how to lead transformational change? A. Establish a sense of urgency for change. B. Create and communicate a change vision. C. Celebrate short-term “wins” and recognize those who help. D. Stay with it; keep the message consistent; champion the vision. E. All of the above are useful lessons regarding how to lead transformational change. E MN Fa
201.
Which of the following statements provides a useful lesson regarding how to lead transformational change? A. Form a powerful coalition to lead the change. B. Empower others to move change forward. C. Build on success; align people and systems with new ways. D. A and B. E. A, B, and C. E MN Fa
202.
__________ is a type of planned change that bends and nudges existing systems and practices to better align them with emerging problems and opportunities. A. Reactive change. B. Planned change. C. Transactional change. D. Transformational change. E. Incremental change. E KT Fa
Forces and Targets for Change 203.
External forces for change in contemporary organizations include all of the following EXCEPT: A. The global economy and local economic conditions. B. Governmental laws and regulations. C. Organizational culture. D. Technological developments and market trends. E. Social forces. C GT Fa
204.
__________ for change arise when a change in one part of the organizational system creates the need for change in another part of the system A. Global forces. B. External forces. C. Interdepartmental forces. D. Internal forces. E. Managerial forces. D GT Fa
748
Schermerhorn & Wright: Management
205.
Which of the following statements is correct with respect to internal forces for organizational change? A. There are no internal forces for change, only external forces. B. A change in one part of the organization can create the need for change in another part of the system. C. Internal forces for change are not as significant to the organization as external forces. D. Internal forces for change can only be identified after dealing effectively with the external forces. E. Once an internal force for change has been addressed, it will not have an impact on the organization again. B GT Fa
206.
The organizational targets for change include all of the following EXCEPT: A. Tasks. B. People. C. Structure and technology. D. Social forces. E. Culture. D GT Fa
207.
Organizational targets for change include all of the following EXCEPT: A. The nature of work as represented by organizational mission, objectives, and strategy; and the job designs for individuals and groups. B. The attitudes and competencies of the employees and the human resource systems that support them. C. The value system for the organization as a whole and the norms guiding individual and group behaviour. D. The operations and information technology used to support job designs, arrange workflows, and integrate people and machines into systems. E. The conditions in the marketplace, including changes in customer preferences and needs. E GT Fa
LEADING PLANNED CHANGE (STUDY QUESTION 3) 208.
Which of the following statements does NOT accurately describe the process of managing planned change? A. Change is a complicated phenomenon in any setting. B. Human nature always stands at the heart of change being a complicated phenomenon. C. People do not act habitually; more often than not, they act in random and erratic ways. D. People may not want to change even when conditions require it. E. Managers and change agents need to deal with people’s tendencies to resist change. C GT Fa
Chapter 18: Change Leadership
749
Phases of Planned Change 209.
The unfreezing, changing, and refreezing phases are all parts of what process? A. Planned-change process. B. Decision-making process. C. Conflict resolution process. D. Organization design process. E. Negotiation process. A GT Fa
210.
__________ is the change phase in which a situation is prepared for change and felt needs for change are developed. A. Unfreezing. B. Sensing. C. Changing. D. Refreezing. E. Refocusing. A KT Fa
211.
Unfreezing can be accomplished by all of the following EXCEPT: A. Establishing a good relationship with the people involved. B. Helping peers realize that present behaviours are not effective. C. Identifying new, more effective ways of behaving. D. Minimizing expressed resistance to change. E. Helping subordinates realize that present behaviours are not effective. C GT Fa
212.
__________ is the phase in which something new takes place in the system, and change is actually implemented. A. Unfreezing. B. Changing. C. Transforming. D. Refreezing. E. Refocusing. B KT Fa
213.
Changing, the second phase of Lewin’s planned organizational change model, can be implemented by __________. A. Identifying new, more effective ways of behaving. B. Choosing appropriate changes in tasks, people, culture, technology, and/or structure. C. Taking action to put changes in tasks, people, culture, technology, and/or structure into place. D. All of the above. E. None of the above. D GT Fa
750
Schermerhorn & Wright: Management
214.
__________ is the phase of stabilizing the change and creating the conditions for its long-term continuity. A. Unfreezing. B. Changing. C. Transforming. D. Refreezing. E. Refocusing. D KT Fa
215.
Refreezing can be accomplished by __________. A. Creating acceptance and continuity for the new behaviours. B. Providing necessary resource support. C. Using performance-contingent rewards and positive reinforcement. D. A and C. E. A, B, and C. E GT Fa
216.
Which of the following does NOT accurately describe Lewin’s model of planned organizational change? A. Planned change consists of three phases. B. The change agent performs the same tasks during each phase of the change process. C. Modifying the organizational targets of tasks, people, culture, technology, and structure occurs during the changing phase of the planned change process. D. Unfreezing involves developing felt needs and preparing a system for change. E. The change agent is concerned with stabilizing the change and creating conditions for longterm continuity in the refreezing phase of the planned change process. B GT Fa
Change Strategies 217.
A force-coercion strategy for change involves the use of __________. A. Expertise and rational argument. B. Referent and expert power. C. Formal authority and/or rewards or punishments. D. Shared power. E. Creativity and innovation. C KT Fa
218.
Which of the following characteristics does NOT accurately describe the behaviour of a change agent who uses a force-coercion strategy? A. The change agent believes that people are basically motivated by self-interest and what the situation offers in terms of potential gains or losses. B. The change agent tries to identify people’s vested interests and then applies pressure to those interests. C. The change agent exploits any weakness that he/she discovers. D. The change agent uses formal authority along with rewards and punishments. E. The change agent avoids political alliances. E GT Fa
Chapter 18: Change Leadership
751
219.
A change agent may take direct and unilateral action to command that change occurs. The change agent is using what version of force-coercion? A. Informational manipulation. B. Indirect forcing. C. Direct forcing. D. Power sharing. E. Lateral manoeuvring. C GT Fa
220.
A change leader might work indirectly to gain special advantage over other persons in the attempt to make them change. This is a version of force-coercion known as __________. A. Informational manipulation. B. Direct forcing. C. Political manoeuvring. D. Power sharing. E. Rational persuasion. C GT Fa
221.
Suppose that a manager uses special knowledge, empirical data, and rational argument to bring about change. This manager is relying on the __________ change strategy. A. Normative-reeducative. B. Rational persuasion. C. Unfreezing-refreezing. D. Facilitation-support. E. Force-coercion. B KT Fa
222.
Which of the following characteristics does NOT accurately describe the behaviour of a change agent who uses a rational persuasion strategy? A. The change agent must convince others of the cost-benefit value of the change. B. The change agent believes that people are guided by reason in their actions and decision making. C. The change agent uses information and facts to communicate the desirability of change. D. The change agent relies on legitimate power. E. The change agent assumes that people are guided by facts, reason, and self-interest. D GT Fa
223.
A(n) __________ strategy engages people in a collabourative process of identifying values, assumptions, and goals from which support for change will naturally emerge. A. Shared power. B. Rational persuasion. C. Unfreezing-refreezing. D. Facilitation-support. E. Force-coercion. A KT Fa
752
Schermerhorn & Wright: Management
224.
A manager who shares power with other people, acts in a participative manner during decision making, and uses group process effectively in the attempt to accomplish change is using a(n) __________ change strategy. A. Force-coercion. B. Normative-reeducative. C. Rational persuasion. D. Empirical-rational. E. Human relations. B GT Fa
225.
Which of the following characteristics does NOT accurately describe the behaviour of a change agent who uses a shared power strategy? A. The change agent relies on reward power. B. The change agent understands change in the context of attitudes, values, skills, and significant relationships. C. The change agent believes that people behave as they do because of sociocultural norms and commitments to others’ expectations. D. The change agent recognizes that people have varied needs and complex motivations. E. The change agent is sensitive to the way group pressures can support or inhibit change. A GT Fa
Resistance to Change 226.
__________ is often viewed as something that must be overcome in order for change to be successful. A. Political manoeuvring. B. Power sharing. C. Forced coercion. D. Resistance to change. E. Rational persuasion. D GT Fa
227.
__________ can be viewed as feedback that an informed change agent can use constructively to modify a planned change to better fit situational needs and goals. A. Political manoeuvring. B. Power sharing. C. Rational persuasion. D. Forced coercion. E. Resistance to change. E GT Ap
228.
Which perspective on “resistance to change” is most appropriate for the contemporary manager? A. Resistance must be stopped immediately because it can destroy the planned changed effort. B. Resistance is best ignored when making changes. C. Resistance provides feedback that can be used to achieve a better fit between the planned change, the situation, and the people involved. D. Once resistance occurs, the change will surely fail. E. Persuading people to change is better than forcing them to change. C GT Ap
Chapter 18: Change Leadership
753
229.
A manager uses education and communication in order to overcome employee resistance to change. This means that the manager will __________. A. Allow employees to help design and implement the desired change. B. Make use of discussions, presentations, or demonstrations to groups of employees in order to inform people of the proposed change. C. Offer incentives, tradeoffs, or provide special benefits. D. Use covert attempts to influence his/her employees. E. Enlist the help of key personnel in planning the change. B GT Fa
230.
A manager who uses participation and involvement in order to overcome employee resistance to change will __________. A. Use discussion, presentations, and demonstrations to educate people beforehand about the change. B. Allow others to contribute ideas and help design and implement the change. C. Provide encouragement and training beforehand about the change. D. Try to covertly influence others by selectively providing information in favour of the desired change. E. Threaten resistors with a variety of undesirable consequences. B GT Fa
231.
The __________ approach for overcoming resistance to change involves providing encouragement and training, actively listening to problems, and helping resistors to deal with performance pressures. A. Manipulation and co-optation. B. Education and communication. C. Facilitation and agreement. D. Facilitation and support. E. Participation and involvement. D GT Fa
232.
__________ involves offering incentives that appeal to actual or potential resistors, or making trade-offs in exchange for assurance that some desired change would not be blocked. A. Manipulation and co-optation. B. Explicit and implicit coercion. C. Facilitation and agreement. D. Facilitation and support. E. Participation and involvement. C GT Fa
233.
Attempting covert influence by selectively providing information and structuring events in favour of the desired change is the __________ strategy of overcoming resistance to change. A. Manipulation and co-optation. B. Explicit and implicit coercion. C. Facilitation and agreement. D. Facilitation and support. E. Participation and involvement. A GT Fa
754
Schermerhorn & Wright: Management
234.
Threatening and/or reminding employees of undesirable consequences if they do not agree to proposed changes is the __________ approach to overcoming resistance to change. A. Manipulation and co-optation. B. Explicit and implicit coercion. C. Facilitation and agreement. D. Facilitation and support. E. Participation and involvement. B GT Fa
235.
Which of the following is NOT a reason why people resist planned change? A. Loss of face. B. Poor timing. C. Disrupted habits. D. Selfishness. E. Work overload. D MN Fa
236.
All of the following are reasons why people resist planned change EXCEPT: A. Not understanding what is happening or what comes next. B. Feeling overwhelmed by the situation or feeling that things are moving too fast. C. Feeling incapable of performing well under the new system. D. Not seeing any reason for the change. E. Self-centered, narrow-minded thinking. E MN Fa
Challenges of Technological Change 237.
Technological change is most advantageous to organizations under which of the following conditions? A. When unexpected events occur. B. When there is a good fit with work needs, practices, and people. C. When employees are inadequately prepared to use the technology. D. When the manager is unwilling to customize the new technology to the needs of the local situation. E. When the manager is reluctant to gather new information relating to change. B GT Fa
238.
Technological __________ may best be approached as an ongoing process that will inevitably require improvisation as things are being implemented. A. Stagnation. B. Control. C. Change D. Assessment. E. Leadership. C GT Fa
Chapter 18: Change Leadership 239.
755
In implementing new technology, the change agent should __________. A. Be alert to resistance. B. Continually gather and process information relating to the change. C. Be willing to customize the new technology to best meet the needs of the local situation. D. All of the above. E. None of the above. D GT Fa
ORGANIZATION DEVELOPMENT (STUDY QUESTION 4) 240.
__________ is a comprehensive approach to planned organizational change that involves the application of behavioural science in a systematic and long-range effort to improve organizational effectiveness. A. Organization development. B. Organization expansion. C. The organizational superstructure. D. Strategic management. E. Systemic organizational management. A KT Fa
241.
In the context of planned organizational change, the letters “OD” stand for __________. A. Organization design. B. Organization development. C. Organizational diversity. D. Open design. E. Operating decisions. B GT Fa
242.
__________ is an important way for leaders to share power to advance planned change agendas, foster creativity and innovation, and continuously improve organizational performance. A. The organizational superstructure. B. Strategic management. C. Organization development. D. Organization expansion. E. Systemic organizational management. C GT Fa
Organization Development Goals 243.
The outcome goals of organizational development focus on __________. A. The way people work together. B. How tasks are accomplished. C. Improving individuals’ job performance. D. Changing human resource policies and procedures. E. Improving employees’ level of job satisfaction. B GT Fa
756
Schermerhorn & Wright: Management
244.
The process goals of organizational development focus on __________. A. The way people work together. B. How tasks are accomplished. C. Improving individuals’ job performance. D. Changing human resource policies and procedures. E. Improving the design of work. A GT Fa
245.
Thinking of organizational development as “planned change plus” means that change is accomplished in such a way that organizational members are __________. A. Limited in their choice about matters affecting them. B. Influenced to change using force-coercion strategies of planned change. C. Subject to having managers make all decisions for their work groups. D. Capable of self-renewal and continued development. E. Provided with expert solutions to technical problems. D GT Fa
How Organization Development Works 246.
Stages of the organization development process include all of the following EXCEPT: A. Establishing a change relationship. B. Gathering and analyzing data. C. Conducting an evaluation. D. Establishing a leader. E. Achieving a terminal relationship. D GT Fa
247.
The first step in the organizational development process is __________. A. Establishing a working relationship with the client system. B. Intervention into the client system. C. Changing the client system. D. Evaluation of change within the client system. E. Diagnosis of the situation in the client system. A GT Fa
248.
Which stage of the organization development process corresponds to unfreezing an existing situation? A. Establishing a change relationship. B. Diagnosis. C. Intervention. D. Evaluation. E. Achieving a terminal relationship. B GT Fa
Chapter 18: Change Leadership
757
249.
Which stage of the organization development process corresponds to changing a situation? A. Establishing a change relationship. B. Diagnosis. C. Intervention. D. Evaluation. E. Achieving a terminal relationship. C GT Fa
250.
Which stage of the organization development process corresponds to refreezing a new situation? A. Establishing a change relationship. B. Diagnosis. C. Intervention. D. Evaluation. E. Achieving a terminal relationship. D GT Fa
251.
Which stage of the organization-development process corresponds to the consultant leaving the client? A. Establishing a working relationship. B. Achieving a terminal relationship. C. Reinforcement. D. Intervention. E. Evaluation. B GT Fa
252.
__________ is a collabourative process of collecting data, using it for action planning, and evaluating the results. A. Organizational diagnosis. B. Operations analysis. C. Action research. D. Organizational research. E. Business planning. C KT Fa
253.
Management perceives a performance gap and proceeds to analyze the situation via a process of systematically collecting data, feeding it back to the organization members for action planning, evaluating results by collecting more data, and repeating the process as necessary. The organization is using which approach? A. Organization development process. B. Action research. C. Planned-change process. D. Organization-innovation process. E. Organization research. B KT Ap
758
Schermerhorn & Wright: Management
Organization Development Interventions 254.
A(n) ___________ is an activity initiated by change agents or managers to directly facilitate the change process. A. Organization development intervention. B. Organization development objective. C. Project plan. D. Change activity chart. E. Strategic plan. A KT Fa
255.
Individual organization development interventions generally recognize that __________. A. Individuals need the guidance of a change agent. B. Change does not come easily for most people. C. The need for personal growth and development will be best satisfied in a supportive and challenging work environment. D. People are not likely to assume responsibility for their actions. E. Expecting a positive outcome or contribution from individuals is not likely if they are asked to change. C GT Fa
256.
Sensitivity training, management training, role negotiation, job redesign, and career planning are organization development interventions designed to improve __________ effectiveness. A. Group. B. Individual. C. Team. D. Managerial. E. Organizational. B GT Fa
257.
Which of the following is a correct description of individual interventions in organization development? A. Management training is an unstructured session where participants learn interpersonal skills and increased sensitivity to other people. B. Sensitivity training involves structured educational opportunities for developing important managerial skills and competencies. C. Job redesign focuses on structured interactions to clarify and negotiate role expectations among people who work together. D. Role negotiation involves realigning task components to better fit the needs and capabilities of the individual. E. Career planning provides structured advice and discussion sessions to help individuals plan career paths and programs of personal development. E GT Fa
Chapter 18: Change Leadership
759
258.
Team interventions are based upon which of the following premises? A. Teams provide important means for helping people satisfy important needs. B. Improved collabouration within teams can improve organizational performance. C. Improved collabouration among teams can improve organizational performance. D. All of the above. E. None of the above. D GT Fa
259.
Team building, process consultation, and intergroup team building are organization development interventions that are designed to improve __________ effectiveness. A. Team. B. Individual. C. Employee D. Managerial. E. Organizational. A GT Fa
260.
Which of the following provides a correct description of team interventions in organization development? A. Team building utilizes structured experiences to help team members set goals, improve interpersonal relations, and become a better functioning team. B. Process consultation uses third-party observation and advice on critical team processes. C. Intergroup team building involves structured experiences to help two or more teams set shared goals, improve intergroup relations, and become better coordinated. D. All of these accurately describe team interventions. E. None of these accurately describe team interventions. D GT Fa
261.
Which of the following statements concerning organization-wide organization development interventions is NOT accurate? A. Leadership is not as important for success as was once believed. B. A change in one part of the system will affect other parts. C. People, systems, and technology can be brought together in productive and satisfying working combinations. D. Jobs and structures have a significant impact on productivity and satisfaction. E. Organizational culture impacts members’ morale and attitudes. A GT Fa
262.
Survey feedback, the confrontation meeting, structural redesign, and management by objectives are all organization development interventions that are intended to improve overall ____________ effectiveness. A. Team. B. Individual. C. Employee. D. Managerial. E. Organizational. E GT Fa
760 263.
Schermerhorn & Wright: Management Which of the following statements regarding organization-wide interventions is incorrect? A. Survey feedback is a comprehensive and systematic data collection method to identify attitudes and needs, analyze results, and plan for constructive action. B. Process consultation uses third-party observation and advice on critical departmental and team processes. C. Confrontation meetings are one-day intensive, structured meetings to gather data on workplace problems and plan for constructive actions. D. Structural redesign involves realigning the organization structure to meet the needs of environmental and contextual forces. E. Management by objectives involves formalizing goal setting throughout the organization to link individual, group, and organizational objectives. B GT Fa
STRESS AND STRESS MANAGEMENT (STUDY QUESTION 5) 264.
The state of tension experienced by people who face extraordinary demands, constraints, or opportunities is called __________. A. Strain. B. Stress. C. Fear. D. Depression. E. Paranoia. B KT Fa
265.
__________ goes hand-in-hand with the dynamic and sometimes uncertain nature of the managerial role. A. Job-related depression. B. Job-related stress C. The Type A personality. D. Job turmoil. E. Managerial upheaval. B KT Fa
Sources of Stress 266.
__________ are things that cause stress and originate in work, personal, and nonwork situations. A. Job characteristics. B. Stressors C. Type A personality characteristics. D. Employee assistance programs. E. Core competencies. B GT Fa
Chapter 18: Change Leadership
761
267.
Work factors that can cause stress include __________. A. Excessively high or low task demands. B. Role conflicts or ambiguities. C. Poor interpersonal relations. D. Career progress that is too slow or too fast. E. All of the above. E GT Fa
268.
_________ is the work-related stress syndrome where performance expectations are impossible or the support is totally inadequate to the task. A. Type A personality. B. Distress. C. Mistaken identity. D. Set up to fail. E. Eustress. D GT Fa
269.
__________ is the work-related stress syndrome where the individual ends up in a job that doesn’t match his/her talents or that he/she doesn’t like. A. Type A personality. B. Distress. C. Mistaken identity. D. Set up to fail. E. Eustress. C GT Fa
270.
The __________ personality is high in achievement orientation, impatience, and perfectionism. A. Achievement motivation. B. Type A. C. Type B. D. High quality. E. Driven. B KT Fa
271.
Which of the following is NOT a characteristic behaviour of the Type A personality? A. Doing several things at once. B. Feeling guilty when relaxing. C. Trying to schedule more in less time. D. Moving, walking, and eating rapidly. E. Showing up late for work. E GT Fa
272.
Family events, personal economics, and personal affairs are __________ that may influence the stress an individual experiences at work. A. Personal factors. B. Work factors. C. Constructive factors. D. Nonwork factors. E. Destructive factors. D GT Fa Consequences of Stress
762
Schermerhorn & Wright: Management
273.
__________ acts in a positive way to increase effort, stimulate creativity, and encourage diligence in one’s work. A. Visionary stress. B. Constructive stress. C. Solid stress. D. Motivational stress. E. Energizing stress. B KT Fa
274.
__________ stress impairs the performance of an individual and is dysfunctional for the individual and/or the organization. A. Destructive. B. Constructive. C. Negative. D. Intense. E. Positive. A KT Fa
275.
A form of physical and mental exhaustion that can be incapacitating both personally and with respect to one’s work is __________. A. Job stress. B. Type A behaviour. C. Job burnout. D. Workplace rage. E. Eustress. C KT Fa
276.
Excessively high or destructive stress in the workplace can lead to __________. A. Reduced performance. B. Absenteeism. C. Errors. D. Accidents. E. All of these. E GT Fa
277.
__________ is overtly aggressive behaviour toward co-workers and the work setting in general. A. Job stress. B. Type A behaviour. C. Job burnout. D. Workplace rage. E. Eustress. D GT Fa
Chapter 18: Change Leadership
763
278.
All but one of the following statements about the negative consequences of stress is true. Which statement is NOT true? A. Destructive stress results from intense or long-term stress that overloads or breaks down a person’s physical and mental systems. B. Destructive stress can lead to job burnout. C. Excessive stress seldom, if ever, leads to overtly aggressive behaviour toward co-workers and the work setting in general. D. Managers must know how to maintain the positive edge of constructive stress while avoiding destructive stress. E. Too much stress can reduce resistance to disease and increase the likelihood of physical and/or mental illness. C GT Ap
279.
Which of the following health problems can be influenced by stress? A. Hypertension. B. Substance abuse. C. Overeating D. Depression. E. All of these can be influenced by stress. E GT Fa
Stress Management Strategies 280.
Which of the following statements is incorrect regarding the responsibility of managers for dealing with stress in the workplace? A. For reasons of better productivity, healthy employees make fewer errors and must be replaced less frequently. B. People are more creative when they feel well, so managers should keep stress at comfortable levels. C. Poor health due to stress may cause employees to reduce their contribution to the organization, so the return on investment to the company is lost. D. People who are under a lot of stress at work will work harder in order to stay competitive with other employees, so the manager actually benefits by keeping stress levels high. E. For humanitarian reasons alone, managers should enhance the employees’ work setting and reduce stress-producing situations as much as possible. D GT Ap
281.
The work factors that have the greatest potential to cause excessive stress include __________. A. Role conflicts. B. Role ambiguities. C. Role overloads. D. All of the above. E. None of the above. D GT Ap
764
Schermerhorn & Wright: Management
282.
__________ is a stress management strategy that includes taking individual responsibility for maintaining one’s health through a disciplined approach to such things as smoking, alcohol or drug use, maintaining a nutritious diet, and engaging in a regular exercise and physical-fitness program. A. Stress prevention. B. Stress coping. C. Stress reduction. D. Personal wellness. E. Humanitarianism. D KT Fa
283.
All of the following statements about personal wellness are accurate EXCEPT: A. Personal wellness describes the pursuit of one’s physical and mental potential through a personal health-promotion program. B. Personal wellness is an important fringe benefit in progressive companies. C. Personal wellness is a form of preventive stress management. D. Personal wellness is a lifestyle that reflects a true commitment to health. E. People who aggressively maintain personal wellness are better prepared to deal with the inevitable stresses of work and work-life conflicts. B GT Fa
Essay Questions 284.
Why is innovation important for organizational survival and success in a turbulent environment? Suggested Answer: Innovation is a primary source of competitive advantage in the modern business world. Organizations that survive and prosper the best are learning organizations –– ones that mobilize people, values, and systems to achieve continuous change and performance improvements driven by the lessons of experience. Tom Peters, for instance, argues that people and organizations should be led toward innovation as the primary source of competitive advantage. Organizations and their managers must continually adapt to new situations if they are to survive and prosper over the long run.
285.
What are the three phases in Lewin’s planned-change process? Give examples of what change leaders can do to accomplish each phase successfully. How do the phases of Lewin’s plannedchange process relate to the stages in the general model of organization development? Suggested Answer: Kurt Lewin’s three phases of the planned-change process are unfreezing, changing, and refreezing. Unfreezing is the change phase in which a situation is prepared for change and felt needs for change are developed. During the unfreezing phase, change leaders can establish good relationships with the people involved, help others realize that present behaviours are not effective, and minimize expressed resistance to change. Changing is the phase in which something new takes place in the system, and change is actually implemented. During the changing phase, change leaders can identify new, more effective ways of behaving; choose
Chapter 18: Change Leadership
765
appropriate changes in tasks, people, culture, technology, and/or structure; and take action to put these changes into place. Refreezing is the phase of stabilizing the change and creating the conditions for its long-term continuity. During the refreezing phase, change leaders can create acceptance and continuity for the new behaviours, provide any necessary resource support, and use performance-contingent rewards and positive reinforcement. Lewin’s three-phase process of planned change relates to the second, third, and fourth stages of the general model of organization development, which is described below: • • • • •
286.
Stage 1: establish a working relationship –– create links with members of the client system. Stage 2: diagnosis –– gathering and analyzing data, and setting appropriate change objectives. This relates to Lewin’s unfreezing stage. Stage 3: intervention –– taking collabourative action to implement desired changes. This relates to Lewin’s changing stage. Stage 4: evaluation –– following up to reinforce and support change. This relates to Lewin’s refreezing stage. Stage 5: achieve a terminal relationship –– withdraw to leave members of the client system as self-reliant.
Describe each of the sources of resistance to change, and provide an example to illustrate each. If possible, draw on personal experience or the observation of others’ experiences for your examples. Suggested Answer: Students should describe and provide examples for each of the common sources of resistance to change that are listed below: • • • • • • • •
287.
Fear of the unknown –– not understanding what is happening or what comes next. Disrupted habits –– feeling upset when old ways of doing things can’t be followed. Loss of confidence –– feeling incapable of performing well under the new ways of doing things. Loss of control –– feeling that things are being done “to” you rather than “by” or “with” you. Poor timing –– feeling overwhelmed and that things are moving too fast. Work overload –– not having the physical or psychic energy to commit to the change. Loss of face –– feeling inadequate or humiliated because the “old” ways apparently weren’t “good” ways. Lack of purpose –– not seeing a reason for the change and/or not understanding its benefits.
Describe two organization development interventions that address problems at the organizationwide level, two that address the team level, and two that address the individual level. Suggested Answer: All of the fundamental interventions for each category ⎯ organization-wide, team, and individual ⎯ are described below. Each student should cover any two of the interventions in each category.
766
Schermerhorn & Wright: Management The different types of organization-wide interventions are: • • • •
Survey feedback –– comprehensive and systematic data collection to identify attitudes and needs, analyze results, and plan for constructive action. Confrontation meeting –– one-day intensive, structured meetings to gather data on workplace problems and plan for constructive actions. Structural redesign –– realigning the organization structure to meet the needs of environmental and contextual forces. Management by objectives –– formalizing MBO throughout the organization to link individual, group, and organizational objectives. The different types of team interventions are:
• • •
Team building –– structured experiences to help team members set goals, improve interpersonal relations, and become a better functioning team. Process consultation –– third-party observation and advice on critical team processes. Intergroup team building –– structured experiences to help two or more teams set shared goals, improve intergroup relations, and become better coordinated. The different types of individual interventions are:
• • • • •
288.
Sensitivity training (T-groups) — unstructured group sessions where participants learn interpersonal skills and increased sensitivity to other people. Management training –– structured educational opportunities for developing important managerial skills and competencies. Role negotiation –– structured interactions to clarify and negotiate role expectations among people who work together. Job redesign –– realigning task components to better fit the needs and capabilities of the individual. Career planning –– structured advice and discussion sessions to help individuals plan career paths and programs of personal development.
Describe the sources of stress in your life and explain their consequences. What can you do to effectively manage the stress that you experience? Suggested Answer: In discussing the sources of stress in their lives the students can cite any of the stressors (i.e., the things that cause stress and originate in work, personal, and non-work factors) that are described below. Work factors include excessively high or low task demands, role conflicts or ambiguities, poor interpersonal relationships, or career progress that is too slow or too fast. Personal factors include individual characteristics such as needs, capabilities, and personality (particularly the Type A personality, which is high in achievement orientation, impatience, and perfectionism). Non-work factors include family events, economics, and personal affairs. Whatever stressors are cited, the students should examine their consequences in terms of the consequences of stress ⎯ that is constructive stress and destructive stress. Constructive stress, sometimes called eustress, acts in a positive way for the individual and/or the organization. Moderate levels of stress can be energizing and performance enhancing; can increase effort and stimulate creativity; and can encourage diligence in one’s work. Destructive stress, or distress, is dysfunctional for the individual and/or the organization. Destructive stress results from intense or long-term stress that overloads or breaks down a person’s physical and mental systems.
Chapter 18: Change Leadership
767
Destructive stress can lead to job burnout or workplace rage, and too much stress can reduce resistance to disease and increase the likelihood of physical and/or mental illness. Students should describe what they can do ⎯ or actually do ⎯ in dealing with destructive stress in particular.