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MGT 500 Week 11 Final Exam Solution – Perfect Score

Chapter 1—Innovative Management for a Changing World

TRUE/FALSE

1. The nature of management is to control and dictate others in an organization.

ANS: PTS: 1 DIF: 2 REF: 3-4
NAT: AACSB Analytic | Motivation Concepts TYP: F

2. Managers need a new approach that relies less on command and control and more on communication and coordination, in the new world of work.

ANS: PTS: 1 DIF: 2 REF: 4
NAT: AACSB Communication | Environmental Influence TYP: F

3. In today’s turbulent and hypercompetitive global environment, managers must help their companies innovate more than ever.

ANS: PTS: 1 DIF: 2 REF: 4
NAT: AACSB Analytic | Creation of Value TYP: F

4. The late famed management theorist Peter Drucker is often credited with creating the modern study of management.

ANS: PTS: 1 DIF: 2 REF: 5
NAT: AACSB Analytic | Leadership Principles TYP: F

5. Managers get things done by coordinating and motivating other people.

ANS: PTS: 1 DIF: 2 REF: 6
NAT: AACSB Analytic | Leadership Principles TYP: F

6. The attainment of organizational goals through planning, organizing, leading and controlling reflects the essence of the management process.

ANS: PTS: 1 DIF: 1 REF: 6
NAT: AACSB Analytic | Leadership Principles TYP: F

7. Where the organization wants to be in the future and how to get there defines controlling.

ANS: PTS: 1 DIF: 1 REF: 7
NAT: AACSB Analytic | Leadership Principles TYP: F

8. Organizing means defining goals for future organizational performance and deciding on the tasks and resources needed to attain them.

ANS: PTS: 1 DIF: 2 REF: 7
NAT: AACSB Analytic | Leadership Principles TYP: F

9. Leading is the use of influence to motivate employees to achieve organizational goals.

ANS: PTS: 1 DIF: 1 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

10. The use of influence to motivate employees to achieve organizational goals defines organizing.

ANS: PTS: 1 DIF: 1 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

11. How an organization goes about accomplishing a plan is a key part of the management function of controlling.

ANS: PTS: 1 DIF: 1 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

12. Using influence to motivate employees describes the management function of leading.

ANS: PTS: 1 DIF: 1 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

13. The use of influence to motivate employees to achieve the organization’s goals refers to controlling.

ANS: PTS: 1 DIF: 1 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

14. Organizing means creating a shared culture and values.

ANS: PTS: 1 DIF: 2 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

15. Controlling involves monitoring employee’s activities and taking corrective action as necessary.

ANS: PTS: 1 DIF: 1 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

16. An organization is a social entity that is goal directed and deliberately structured.

ANS: PTS: 1 DIF: 1 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: F

17. In the definition of an organization, deliberately structured means being made up of two or more people and designed to achieve some outcomes.

ANS: PTS: 1 DIF: 1 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: F

18. Efficiency refers to the degree to which the organization achieves a stated objective.

ANS: PTS: 1 DIF: 1 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: F

19. Efficiency can be calculated as the amount of resources used to produce a product or service.

ANS: PTS: 1 DIF: 1 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: F

20. To perform effectively, all managers must possess conceptual, human, and technical skills, though the degree of each skill necessary at different levels of an organization may vary.

ANS: PTS: 1 DIF: 2 REF: 10
NAT: AACSB Analytic | HRM TYP: F

21. All managers have to pay attention to costs and according to research, the best way to improve organizational effectiveness is by severe cost cutting.

ANS: PTS: 1 DIF: 2 REF: 10
NAT: AACSB Analytic | Strategy TYP: F

22. Human skill is the cognitive ability to see the organization as a whole system and the relationships among its parts.

ANS: PTS: 1 DIF: 2 REF: 10
NAT: AACSB Reflective Thinking | Leadership Principles TYP: F

23. Only the top managers in organizations need conceptual skills since it involves planning.

ANS: PTS: 1 DIF: 2 REF: 10
NAT: AACSB Analytic | HRM TYP: F

24. A manager’s ability to work with and through other people and to work effectively as a group member is called human skills.

ANS: PTS: 1 DIF: 1 REF: 11
NAT: AACSB Analytic | HRM TYP: F

25. Technical skills are most important at lower organizational levels while human skills become more important as managers move up the organizational hierarchy.

ANS: PTS: 1 DIF: 2 REF: 11
NAT: AACSB Analytic | HRM TYP: F

26. Technical skills are utilized in the understanding and proficiency of general tasks.

ANS: PTS: 1 DIF: 1 REF: 11
NAT: AACSB Analytic | HRM TYP: F

27. One of the biggest mistakes during turbulent times is managers’ failure to comprehend and adapt to the rapid pace of change in the world around them.

ANS: PTS: 1 DIF: 2 REF: 12
NAT: AACSB Analytic | Leadership Principles TYP: F

28. Managers use conceptual, human, and technical skills to perform the four management functions of planning, organizing, leading, and controlling in all organizations.

ANS: PTS: 1 DIF: 2 REF: 13
NAT: AACSB Analytic | HRM TYP: F

29. First-line managers are responsible for setting organizational goals, defining strategies for achieving them, monitoring and interpreting the external environment, and making decisions that affect the entire organization.

ANS: PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Strategy TYP: F

30. Middle managers are responsible for setting organizational goals, defining strategies for achieving them, and making decisions that affect the entire organization.

ANS: PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: F

31. Antonio is head of the advertising department at Terrific Tortillas, Inc. He can be described as a general manager.

ANS: PTS: 1 DIF: 3 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: A

32. Juan, as a manager, is generally concerned with the near future and is expected to establish good relationships with peers around the organization, encourage teamwork, and resolve conflicts. Juan can be described as a middle manager.

ANS: PTS: 1 DIF: 3 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: A

33. Given the significantly reduced importance of the middle manager’s jobs in today’s workplace, these levels have been eliminated in organizations.

ANS: PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: F

34. First line managers are the managers who have the responsibility for making the significant strategic policy decisions, often with staff managers assisting them in these decisions.

ANS: PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: F

35. Staff managers are responsible for the manufacturing and marketing departments that make or sell the products or services.

ANS: PTS: 1 DIF: 2 REF: 15
NAT: AACSB Analytic | Creation of Value TYP: F

36. According to research, managers most enjoy activities such as leading others, networking, and leading innovation.

ANS: PTS: 1 DIF: 1 REF: 16
NAT: AACSB Analytic | Leadership Principles TYP: F

37. Manager least enjoy activities such as controlling subordinates and managing time pressures.

ANS: PTS: 1 DIF: 2 REF: 16
NAT: AACSB Analytic | Leadership Principles TYP: F

38. A general manager is responsible for a self-contained division.

ANS: PTS: 1 DIF: 2 REF: 15
NAT: AACSB Analytic | Leadership Principles TYP: F

39. The individual performer is a generalist and coordinates a broad range of activities.

ANS: PTS: 1 DIF: 2 REF: 17
NAT: AACSB Analytic | Leadership Principles TYP: F

40. The manager is a specialist and a “doer.”

ANS: PTS: 1 DIF: 2 REF: 17
NAT: AACSB Analytic | Leadership Principles TYP: F

41. Becoming a successful manager means thinking in terms of building teams and networks, becoming a motivator and organizer within a highly interdependent system of people and work.

ANS: PTS: 1 DIF: 1 REF: 17
NAT: AACSB Analytic | HRM TYP: F

42. Manager’s Shoptalk in Chapter 1 asks you to consider issues such as the increased workload and the challenge of supervising former peers to help you decide if you really want to become a manager.

ANS: PTS: 1 DIF: 2 REF: 18
NAT: AACSB Analytic | Leadership Principles TYP: F

43. Managerial activity is often characterized by routine, continuity, and lengthy time-frame.

ANS: PTS: 1 DIF: 1 REF: 19
NAT: AACSB Analytic | HRM TYP: F

44. A manager forwards information to other organization members in the disseminator role.

ANS: PTS: 1 DIF: 1 REF: 20-21
NAT: AACSB Analytic | Leadership Principles TYP: F

45. In the spokesperson role, a manager forwards information to other organization members.

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

46. The interpersonal roles performed by managers include figurehead, leader, and liaison.

ANS: PTS: 1 DIF: 1 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

47. The informational roles that managers perform include monitor, disseminator, and spokesperson.

ANS: PTS: 1 DIF: 1 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

48. The monitor role involves the initiation of change.

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

49. In the figurehead role, the manager performs ceremonial and symbolic duties.

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

50. The disturbance handler role involves the initiation of change, thinking about the future and how to get there.

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

51. Fortunately for managers, the disseminator and spokesperson roles are identical.

ANS: PTS: 1 DIF: 1 REF: 21
NAT: AACSB Reflective Thinking | HRM TYP: F

52. Managers in small businesses tend to emphasize roles different from those of managers in large corporations.

ANS: PTS: 1 DIF: 1 REF: 23
NAT: AACSB Analytic | HRM TYP: F

53. Not-for-profit organizations, such as The Red Cross and the Girl Scouts, represent a major application of management talent.

ANS: PTS: 1 DIF: 1 REF: 23
NAT: AACSB Analytic | HRM TYP: F

54. We might expect managers in nonprofit organizations to place more emphasis on the roles of spokesperson, leader, and resource allocator.

ANS: PTS: 1 DIF: 1 REF: 24
NAT: AACSB Analytic | Leadership Principles TYP: F

55. Managers in not-for-profit organizations, according to research, should place less emphasis on the roles of spokesperson, leader, and resource allocator.

ANS: PTS: 1 DIF: 2 REF: 24
NAT: AACSB Analytic | HRM TYP: F

56. One of the most striking changes affecting organizations and management is technology.

ANS: PTS: 1 DIF: 2 REF: 24
NAT: AACSB Analytic | Environmental Influence TYP: F

57. In the new workplace, the valued worker is one who learns quickly, shares knowledge, and is comfortable with risk, change, and ambiguity.

ANS: PTS: 1 DIF: 2 REF: 26
NAT: AACSB Analytic | HRM TYP: F

58. The primary characteristic of the new workplace is that it is centered on loyal and homogeneous employees.

ANS: PTS: 1 DIF: 2 REF: 26
NAT: AACSB Analytic | Environmental Influence TYP: F

59. The new workplace is organized around networks rather than rigid hierarchies, and work is often virtual.

ANS: PTS: 1 DIF: 2 REF: 26
NAT: AACSB Analytic | Environmental Influence TYP: F

60. Organizations are increasingly shifting significant chunks of what were once considered core functions to outsiders via outsourcing, joint ventures, and other complex alliances.

ANS: PTS: 1 DIF: 1 REF: 24
NAT: AACSB Analytic | Creation of Value TYP: F

61. In the new workplace, managers should focus on developing teamwork, collaboration, and teamwork.

ANS: PTS: 1 DIF: 1 REF: 26
NAT: AACSB Analytic | HRM TYP: F

62. Success in the new workplace depends on the strength and quality of independent employees.

ANS: PTS: 1 DIF: 1 REF: 26
NAT: AACSB Analytic | HRM TYP: F

63. Organizations are learning to value stability and efficiency over change and speed because of changes in technology, globalization, and diversity.

ANS: PTS: 1 DIF: 2 REF: 24-25
NAT: AACSB Technology | Environmental Influence TYP: F

64. Companies can survive over the long run without innovation as long as they are successful imitators.

ANS: PTS: 1 DIF: 2 REF: 4
NAT: AACSB Analytic | Creation of Value TYP: F

65. Despite the need for companies to control costs in today’s economy, innovation has become the new imperative.

ANS: PTS: 1 DIF: 2 REF: 5
NAT: AACSB Analytic | Creation of Value TYP: F

66. Recognizing the value of employees involves the organizing role of management.

ANS: PTS: 1 DIF: 2 REF: 6
NAT: AACSB Analytic | Leadership Principles TYP: F

67. Resources such as efficiency and effectiveness are used by managers to attain organizational goals.

ANS: PTS: 1 DIF: 2 REF: 7
NAT: AACSB Analytic | Creation of Value TYP: F

68. Allocating resources across the organization is part of the organizing management function.

ANS: PTS: 1 DIF: 2 REF: 7
NAT: AACSB Analytic | Operations Management TYP: F

69. An important phase within the controlling function of management is making corrections when necessary.

ANS: PTS: 1 DIF: 2 REF: 8
NAT: AACSB Analytic | Operations Management TYP: F

70. When an organization is deliberately structured, it is designed to achieve some outcome, such as making a profit.

ANS: PTS: 1 DIF: 2 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: F

71. By calculating the amount of resources used to produce a single automobile at a manufacturing plant, managers are determining organizational effectiveness.

ANS: PTS: 1 DIF: 2 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: A

72. The ultimate responsibility of managers is to achieve high performance by balancing efficiency and effectiveness.

ANS: PTS: 1 DIF: 1 REF: 10
NAT: AACSB Analytic | Creation of Value TYP: F

73. The ability to motivate others is considered a technical management skill.

ANS: PTS: 1 DIF: 2 REF: 11
NAT: AACSB Analytic | Leadership Principles TYP: F

74. The majority of business failures are the result of poor human skills.

ANS: PTS: 1 DIF: 2 REF: 12
NAT: AACSB Analytic | Creation of Value TYP: F

75. Facilitating individual employee performance is an important role for top managers.

ANS: PTS: 1 DIF: 2 REF: 13
NAT: AACSB Analytic | Leadership Principles TYP: F

76. A human resource manager would be considered a staff manager.

ANS: PTS: 1 DIF: 2 REF: 15
NAT: AACSB Analytic | HRM TYP: F

77. A project manager is also considered a staff manager because he or she is charged with coordinating people across several departments to accomplish a specific project.

ANS: PTS: 1 DIF: 2 REF: 13-15
NAT: AACSB Analytic | Operations Management TYP: F

78. Most top executives routinely work at least 12 hours a day and spend 50 percent or more of their time traveling.

ANS: PTS: 1 DIF: 2 REF: 19
NAT: AACSB Analytic | Leadership Principles TYP: F

MULTIPLE CHOICE

1. The nature of management is to cope with ____ and far-reaching challenges.
a. simple
b. planned
c. diverse
d. organized
e. controlled

ANS: PTS: 1 DIF: 2 REF: 3-4
NAT: AACSB Analytic | Leadership Principles TYP: F

2. Managers, in today’s work environment, rely less on ____ and more on ____ leadership.
a. coordination and communication; control and command
b. autocratic; empowering
c. empowerment and innovation; productivity and efficiency
d. effectiveness and efficiency; quality and profit
e. ethics and social responsibility; profit and cost-savings

ANS: PTS: 1 DIF: 2 REF: 25
NAT: AACSB Analytic | Leadership Principles TYP: F

3. Without ____, no company can survive over the long run.
a. cost-cutting
b. outsourcing
c. command-and-control approach
d. total quality teamwork
e. innovation

ANS: PTS: 1 DIF: 2 REF: 4
NAT: AACSB Analytic | Leadership Principles TYP: F

4. One of the important ideas in the text’s definition of management is
a. the management functions of planning, organizing, leading, and controlling.
b. the attainment of societal goals.
c. effectiveness is more important than efficiency.
d. management is unique to for-profit organizations.
e. efficiency is more important than effectiveness.

ANS: PTS: 1 DIF: 1 REF: 6
NAT: AACSB Analytic | Leadership Principles TYP: F

5. When senior managers at Gap, Inc. decided to become the number one service-quality clothing company in the world, they were engaging in the management function of
a. planning.
b. organizing.
c. leading.
d. controlling.
e. dreaming.

ANS: PTS: 1 DIF: 2 REF: 7
NAT: AACSB Analytic | Leadership Principles TYP: A

6. Selecting goals and ways to attain them refers to
a. controlling.
b. planning.
c. organizing.
d. staffing.
e. leading.

ANS: PTS: 1 DIF: 1 REF: 7
NAT: AACSB Analytic | Leadership Principles TYP: F

7. Which of these can best describe organizing?
a. Assigning responsibility for task accomplishment.
b. Using influence to motivate employees.
c. Monitoring activities and making corrections.
d. Selecting goals and ways to attain them.
e. None of these.

ANS: PTS: 1 DIF: 3 REF: 7
NAT: AACSB Analytic | Leadership Principles TYP: F

8. Which of the following is not a function of management?
a. Plan
b. Control
c. Organize
d. Lead
e. Performance

ANS: PTS: 1 DIF: 1 REF: 7
NAT: AACSB Analytic | Leadership Principles TYP: F

9. How an organization goes about accomplishing a plan is a key part of the management function of
a. planning.
b. organizing.
c. leading.
d. controlling.
e. motivating.

ANS: PTS: 1 DIF: 1 REF: 7
NAT: AACSB Analytic | Leadership Principles TYP: F

10. When Terry Doyle of CommuniCom, Inc. created smaller, more independent maintenance units, he was performing the function of
a. controlling.
b. human relations skills.
c. leading.
d. organizing.
e. resourcing.

ANS: PTS: 1 DIF: 3 REF: 7
NAT: AACSB Analytic | Leadership Principles TYP: A

11. Using influence to motivate employees describes which of these functions?
a. Controlling
b. Planning
c. Leading
d. Monitoring
e. Organizing

ANS: PTS: 1 DIF: 1 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

12. Which of these is the use of influence to motivate employees to achieve organizational goals?
a. Leading
b. Controlling
c. Organizing
d. Planning
e. Staffing

ANS: PTS: 1 DIF: 1 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

13. Amanda Rowley, President of Autos-R-Us, recognizes the factory employees for their outstanding performance at the monthly awards banquet on the shop floor by presenting a plaque and a check for $100. She is engaging in the management function of
a. bribery.
b. organizing.
c. technical skills.
d. leading.
e. controlling.

ANS: PTS: 1 DIF: 3 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: A

14. Monitoring activities and making corrections are part of
a. organizing.
b. planning.
c. leading.
d. staffing.
e. controlling.

ANS: PTS: 1 DIF: 1 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

15. Tool Techies, Inc. uses phone surveys of customers to gather information about service and quality. This is an example of the management function of
a. planning.
b. technical skills.
c. organizing.
d. controlling.
e. conceptual skills.

ANS: PTS: 1 DIF: 2 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: A

16. ____ is the management function concerned with monitoring employees’ activities, keeping the organization on track toward its goals, and making corrections as needed.
a. Planning
b. Resource allocation
c. Controlling
d. Organizing
e. Efficiency

ANS: PTS: 1 DIF: 1 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

17. When Troy measures his employees’ performance and compares their performance against the goals he set for them, he is performing which of these functions?
a. Staffing
b. Leading
c. Organizing
d. Controlling
e. Planning

ANS: PTS: 1 DIF: 2 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: A

18. A social entity that is goal directed and deliberately structured is referred to as a(n)
a. organization.
b. management.
c. employee.
d. student.
e. task.

ANS: PTS: 1 DIF: 1 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: F

19. The degree to which an organization achieves a stated goal refers to
a. effectiveness.
b. synergy.
c. conceptual skill.
d. efficiency.
e. human skill.

ANS: PTS: 1 DIF: 2 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: F

20. Which of the following refers to the amount of resources used to achieve an organization’s goal?
a. Effectiveness
b. Synergy
c. Performance
d. Efficiency
e. Management

ANS: PTS: 1 DIF: 1 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: F

21. For a widget manufacturing company, worker-hours per widget is a measure of
a. organizational effectiveness.
b. organizational performance.
c. organizational efficiency.
d. organizational structure.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: A

22. Conceptual, human, and technical skills are important to which managerial level?
a. Top managers
b. Middle managers
c. First-line managers
d. Non managers
e. All of these

ANS: PTS: 1 DIF: 1 REF: 10
NAT: AACSB Analytic | HRM TYP: F

23. ____ skills is the cognitive ability to see the organization as a whole and the relationship among its parts.
a. Human
b. Resource allocation
c. Conceptual
d. Negotiation
e. Technical

ANS: PTS: 1 DIF: 1 REF: 10
NAT: AACSB Analytic | HRM TYP: F

24. Juan Perez is the President of WV Railroad. His organization faces issues related to the environment, government regulation, and competition. He will need to rely primarily on his
a. conceptual skills.
b. technical skills.
c. human skills.
d. controlling skills.
e. interpersonal skills.

ANS: PTS: 1 DIF: 3 REF: 10
NAT: AACSB Analytic | HRM TYP: A

25. ____ are most important at the top management level.
a. Conceptual skills
b. Human skills
c. Technical skills
d. Project skills
e. All of these

ANS: PTS: 1 DIF: 1 REF: 10
NAT: AACSB Analytic | HRM TYP: F

26. A manager’s ____ skill is demonstrated in the way a manager relates to other people.
a. conceptual
b. human
c. technical
d. leading
e. controlling

ANS: PTS: 1 DIF: 1 REF: 11
NAT: AACSB Analytic | HRM TYP: F

27. Which of the following skill is the manager’s ability to work with and through other people and to work effectively as a group member?
a. Human
b. Conceptual
c. Technical
d. Intellectual
e. Planning

ANS: PTS: 1 DIF: 1 REF: 11
NAT: AACSB Analytic | HRM TYP: F

28. Which skills include specialized knowledge and analytical ability?
a. Conceptual
b. Human
c. Technical
d. Controlling
e. Planning

ANS: PTS: 1 DIF: 1 REF: 11
NAT: AACSB Analytic | HRM TYP: F

29. 1Which of the following are most important at lower organizational levels?
a. Planning skills
b. Human skills
c. Conceptual skills
d. Technical skills
e. None of these

ANS: PTS: 1 DIF: 2 REF: 11
NAT: AACSB Analytic | HRM TYP: F

30. Organizations often lose good employees because front-line managers fail to ____.
a. give direction
b. offer challenge
c. show respect
d. show recognition
e. listen to new ideas

ANS: PTS: 1 DIF: 2 REF: 11
NAT: AACSB Analytic | HRM TYP: F

31. ____ is the understanding of and proficiency in the performance of specific tasks.
a. Human skill
b. Conceptual skill
c. Interpersonal skill
d. Technical skill
e. Leadership skill

ANS: PTS: 1 DIF: 1 REF: 11
NAT: AACSB Analytic | HRM TYP: F

32. The biggest mistake that many manager’s make is the failure to ____.
a. clarify direction
b. communicate effectively
c. display compassion to employees
d. create employee recognition programs
e. focus on productivity

ANS: PTS: 1 DIF: 3 REF: 12
NAT: AACSB Analytic | Leadership Principles TYP: F

33. Critical management missteps include:
a. poor communication skills
b. reactionary behavior
c. inability to build a team
d. failure to adapt
e. all of these

ANS: PTS: 1 DIF: 2 REF: 12
NAT: AACSB Analytic | Leadership Principles TYP: F

34. According to the text, what are the skills used by managers when performing the four functions of management?
a. Conceptual, interpersonal, and organizational
b. Functional, problem-solving, and technical
c. Analytical, interpersonal, and financial
d. Conceptual, human, and technical
e. Communication, strategic, and innovative

ANS: PTS: 1 DIF: 2 REF: 13
NAT: AACSB Analytic | HRM TYP: F

35. Which of the following are responsible for the entire organization?
a. Top managers
b. Middle managers
c. First-line managers
d. Controlling managers
e. Organizing managers

ANS: PTS: 1 DIF: 1 REF: 14
NAT: AACSB Analytic | Leadership Principles TYP: F

36. What is the main concern of first-level managers?
a. Monitoring the external environment and determining the best strategy to be competitive
b. Putting top management plans into action across the organization
c. Allocating resources and coordinating teams
d. Linking groups of people
e. Facilitating individual performance

ANS: PTS: 1 DIF: 2 REF: 13
NAT: AACSB Analytic | HRM TYP: F

37. The most important responsibilities for ____ managers include communicating a shared vision for the organization and shaping corporate culture.
a. top
b. middle
c. first-line
d. leading
e. organizing

ANS: PTS: 1 DIF: 1 REF: 14
NAT: AACSB Analytic | Leadership Principles TYP: F

38. Marley is the executive director of the local Community for Critters. Her level in the management hierarchy is that of a(n)
a. first-line manager.
b. middle manager.
c. top manager.
d. consultant.
e. operative.

ANS: PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: A

39. Consider the following three managers from Outrageous Outfitters, Inc. Tiffany Blanchard is the president, Timothy Thompson is the director of marketing, and Karen Baxter is a maintenance supervisor. Which of the following statements is true?
a. Karen Baxter does more planning than Tiffany Blanchard.
b. Timothy Thompson does more leading than Karen Baxter.
c. Tiffany Blanchard does more controlling than Timothy Thompson.
d. Tiffany Blanchard does more planning than Karen Baxter.
e. None of these.

ANS: PTS: 1 DIF: 3 REF: 13
NAT: AACSB Analytic | Creation of Value TYP: A

40. Donna Hyde is the head of the finance department at Muumuu Manufacturing, Inc. Her level in the management hierarchy is that of a(n)
a. first-line manager.
b. middle manager.
c. top manager.
d. chief executive officer.
e. operative.

ANS: PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: A

41. Patty Rohrer is the director of human resources at Pet Grooming, Inc. She can be best described as a
a. top level manager.
b. project manager.
c. general manager.
d. first-line manager.
e. functional manager.

ANS: PTS: 1 DIF: 3 REF: 15
NAT: AACSB Analytic | Creation of Value TYP: A

42. ____ managers are responsible for departments that perform a single functional task and have employees with similar training and skills.
a. Top
b. Middle
c. First-line
d. Bottom
e. Functional

ANS: PTS: 1 DIF: 2 REF: 15
NAT: AACSB Analytic | Creation of Value TYP: F

43. Today’s middle manager is responsible for creating a ____ rather than managing the flow of information up and down the hierarchy.
a. vertical chain
b. horizontal network
c. diagonal system of communication
d. spiral network
e. chaos-based evaluation system

ANS: PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: F

44. Kyle Erckard, manager of the jewelry division of a major dept. store, coordinated the work of several people across several departments to accomplish a $500,000 fundraising for an animal shelter. He can best be described in his fundraising activities as a(n)
a. top manager.
b. middle manager.
c. project manager.
d. first-line manager.
e. operative.

ANS: PTS: 1 DIF: 3 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: A

45. Which of the following best describes Terrance’s position as a project manager?
a. He is responsible for several departments that perform different functions.
b. He is required to have significant human skills.
c. He is responsible for self-contained division and all the departments within it.
d. He supervises employees with similar training and skills.
e. All of these.

ANS: PTS: 1 DIF: 3 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: A

46. Temporary management professionals responsible for a temporary work project that involves the participation of people from various functions and levels of the organization are called ____.
a. middle managers
b. project managers
c. interim managers
d. first line managers
e. functional managers

ANS: PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: F

47. Calvin Strine is the office manager of a local accounting firm. His level in the management hierarchy is that of a(n)
a. first-line manager.
b. middle manager.
c. top manager.
d. consultant.
e. operative.

ANS: PTS: 1 DIF: 2 REF: 15
NAT: AACSB Analytic | Creation of Value TYP: A

48. Which of the following best describes Stacey’s position as a functional manager?
a. She is responsible for several departments that perform different functions.
b. She organizes people across departments to perform a specific task.
c. She is responsible for a self-contained division and all the departments within it.
d. She supervises employees with similar training and skills.
e. None of these.

ANS: PTS: 1 DIF: 3 REF: 15
NAT: AACSB Analytic | Creation of Value TYP: A

49. Which of these managers are responsible for the manufacturing and marketing departments that make or sell the product or service?
a. Top
b. Line
c. First-line
d. Staff
e. Project

ANS: PTS: 1 DIF: 2 REF: 15
NAT: AACSB Analytic | Creation of Value TYP: F

50. Which of these managers are in charge of departments such as finance and HR that support line departments?
a. Line
b. Project
c. Top
d. Operatives
e. Staff

ANS: PTS: 1 DIF: 2 REF: 15
NAT: AACSB Analytic | Creation of Value TYP: F

51. ____ are responsible for departments that perform a single task and have employees with similar training skills.
a. Top managers
b. Middle managers
c. General managers
d. Functional managers
e. First-Line managers

ANS: PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: F

52. Taylor Brittingham is a general manager. Which of the following best describes her position?
a. She is responsible for several departments that perform different functions.
b. She organizes people across departments to perform a specific task.
c. She is responsible for one specific department (e.g., marketing).
d. She supervises employees with similar training and skills.
e. None of these

ANS: PTS: 1 DIF: 3 REF: 15
NAT: AACSB Analytic | Creation of Value TYP: A

53. One of the things managers enjoy doing the most is:
a. financial planning
b. controlling activities
c. planning for future decisions
d. leading others
e. hiring new employees

ANS: PTS: 1 DIF: 2 REF: 15
NAT: AACSB Analytic | Leadership Principles TYP: F

54. Research shows that managers enjoy all of the following except:
a. networking
b. innovation
c. leading others
d. managing time
e. all of these

ANS: PTS: 1 DIF: 2 REF: 15
NAT: AACSB Analytic | Leadership Principles TYP: F

55. Of all management duties, one of the things managers like the least is:
a. financial planning
b. controlling activities
c. planning for future decisions
d. handling paperwork
e. networking

ANS: PTS: 1 DIF: 2 REF: 15
NAT: AACSB Analytic | Leadership Principles TYP: F

56. The individual performer is a(n) ____; whereas, the manager has to be a(n) ____.
a. specialist; generalist
b. “leader”; doer
c. generalist; specialist
d. producer; expert
e. communicator; operator

ANS: PTS: 1 DIF: 2 REF: 17
NAT: AACSB Analytic | Leadership Principles TYP: F

57. The individual identity includes which of the following?
a. Generalist, coordinates diverse tasks
b. Gets things done through others
c. Works relatively independently
d. A network builder
e. Works in highly interdependent manner

ANS: PTS: 1 DIF: 2 REF: 17
NAT: AACSB Analytic | Leadership Principles TYP: F

58. Which of the following includes the manager identity?
a. Specialist, performs specific tasks
b. Gets things done through own efforts
c. An individual actor
d. A network builder
e. Works relatively independently

ANS: PTS: 1 DIF: 2 REF: 17
NAT: AACSB Analytic | Leadership Principles TYP: F

59. Being a successful manager means thinking in terms of all of the following, except:
a. building teams.
b. generating the most profit.
c. becoming a motivator.
d. becoming an organizer.
e. establishing networks.

ANS: PTS: 1 DIF: 2 REF: 17
NAT: AACSB Analytic | Leadership Principles TYP: F

60. Manager’s Shoptalk in Chapter 1 outlines all of the following issues would-be managers should consider except:
a. The increased workload
b. The challenge of supervising former peers
c. The headache of responsibility for other people
d. Being caught in the middle
e. The technical aspects of management

ANS: PTS: 1 DIF: 2 REF: 19
NAT: AACSB Analytic | Leadership Principles TYP: F

61. According to the Manager’s Shoptalk in Chapter 1, before becoming a manager, would-be managers should consider which of the following:
a. time for the increased workload
b. challenge of supervising former peers
c. the responsibility of managing others
d. being caught in the middle
e. all of these

ANS: PTS: 1 DIF: 2 REF: 19
NAT: AACSB Analytic | Leadership Principles TYP: F

62. Managers shift gears quickly and therefore, the average time spent on any one activity is less than ____.
a. nine minutes
b. an hour
c. one workday
d. a half hour
e. a half day

ANS: PTS: 1 DIF: 3 REF: 19
NAT: AACSB Reflective Thinking | HRM TYP: F

63. Which of the following is not one of the conceptual categories of managerial roles Mintzberg defined?
a. informational
b. interpersonal
c. decisional
d. intrapersonal
e. all of these are managerial roles defined by Mintzberg

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

64. Which of the following is an informational role, according to Mintzberg?
a. Entrepreneur role
b. Leader role
c. Monitor role
d. Disturbance handler role
e. Figurehead role

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

65. Gail Griffith, manager of the finance division, distributes relevant information everyday to all her employees enabling them to make quality decisions. Gail is performing which of the following roles?
a. Monitor role
b. Disseminator role
c. Spokesperson role
d. Disturbance handler role
e. Figurehead role

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: A

66. The president of Pepsi Company is the keynote speaker at a retirement dinner for a long time bottler. This is an example of which of the following roles?
a. Liaison role
b. Figurehead role
c. Negotiator role
d. Leader role
e. Monitor role

ANS: PTS: 1 DIF: 3 REF: 20
NAT: AACSB Analytic | Leadership Principles TYP: A

67. According to Mintzberg, when Amanda attends a subordinate’s wedding she is performing which of these roles?
a. Monitoring
b. Figurehead
c. Spokesperson
d. Leader
e. Liaison

ANS: PTS: 1 DIF: 3 REF: 20
NAT: AACSB Analytic | Leadership Principles TYP: A

68. If Bradley Hak is responsible for maintaining information links both inside and outside organizations by using mail, phone calls, and conducting meetings as daily activities, he would be considered a
a. figurehead.
b. liaison.
c. negotiator.
d. monitor.
e. spokesperson.

ANS: PTS: 1 DIF: 2 REF: 20
NAT: AACSB Analytic | Leadership Principles TYP: A

69. Which of the following is not a decisional role?
a. Entrepreneur
b. Negotiator
c. Resource allocator
d. Disturbance handler
e. Liaison

ANS: PTS: 1 DIF: 1 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

70. The ____ role involves resolving conflicts among subordinates between the managers department and other departments.
a. resource allocator
b. entrepreneur
c. negotiator
d. liaison
e. disturbance handler

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

71. According to Mintzberg, which of these is an interpersonal role?
a. Monitor
b. Negotiator
c. Liaison
d. Disturbance handler
e. Spokesperson

ANS: PTS: 1 DIF: 1 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

72. Maintaining information links are the activities consistent with the ____ role.
a. leader
b. spokesperson
c. monitor
d. liaison
e. entrepreneur

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

73. Which of the following roles involve bargaining with others to meet the unit or departmental goals?
a. Negotiator
b. Resource allocator
c. Figurehead
d. Monitor
e. Leader

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

74. If a manager finds a severe decline in employee morale and direction, they may need to spend more time in the ____ role.
a. negotiator
b. resource allocator
c. figurehead
d. monitor
e. leader

ANS: PTS: 1 DIF: 2 REF: 22
NAT: AACSB Analytic | Leadership Principles TYP: F

75. What is the role of the liaison?
a. The liaison role pertains to decisions about how to allocate people, time, equipment, money, and other resources to attain desired outcomes.
b. The liaison role involves the initiation of change.
c. The liaison role pertains to the development of information sources both inside and outside the organization.
d. The liaison role involves handling ceremonial and symbolic activities for the department or organization.
e. The liaison role involves formal negotiations and bargaining to attain outcomes for the manager’s unit of responsibility.

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

76. What is the role of the negotiator?
a. The negotiator role involves formal negotiations and bargaining to attain outcomes for the manager’s unit of responsibility.
b. The negotiator role involves seeking current information from many sources.
c. The negotiator role involves the initiation of change.
d. The negotiator role involves resolving conflicts among subordinates or between the manager’s department and other departments.
e. The negotiator role pertains to the development of information sources both inside and outside the organization.

ANS: PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

77. If a manager finds several new competitors on the horizon, they may need to spend more time in the which role?
a. Negotiator
b. Resource allocator
c. Figurehead
d. Monitor
e. Leader

ANS: PTS: 1 DIF: 2 REF: 22
NAT: AACSB Analytic | Leadership Principles TYP: F

78. To meet the needs of the organization, all managers carry out the three major categories of roles. They are: ____, ____, and ____ roles.
a. monitor, figurehead, and liaison
b. leader, monitor, and spokesperson
c. disseminator, entrepreneurial, disturbance handler
d. decisional, spokesperson, and leader
e. informational, interpersonal, and decisional

ANS: PTS: 1 DIF: 2 REF: 20
NAT: AACSB Analytic | Leadership Principles TYP: F

79. Since not-for-profit organizations do not have a conventional ____, managers may struggle with the question of what constitutes results and effectiveness.
a. hierarchy
b. bottom line
c. information system
d. decision-making process
e. structure

ANS: PTS: 1 DIF: 2 REF: 24
NAT: AACSB Analytic | HRM TYP: F

80. A manager in for-profit business focuses primarily on ____, while a manager of a non-profit focuses on ____.
a. the bottom-line, employee morale
b. the bottom-line, social impact
c. profitability, customer satisfaction
d. market share, the bottom-line
e. customer satisfaction, organization reputation

ANS: PTS: 1 DIF: 2 REF: 23-24
NAT: AACSB Analytic | Creation of Value TYP: F

81. One of the roles that a small business manager may emphasize over their counterpart in a large organization is ____.
a. information processing
b. spokesperson
c. liaison
d. resource allocator
e. leader

ANS: PTS: 1 DIF: 2 REF: 23
NAT: AACSB Analytic | Leadership Principles TYP: F

82. In the new workplace, work is ____, in contrast to the old workplace where work was ____.
a. flexible; diverse
b. mechanical; flexible
c. flexible; structured
d. autocratic; structured
e. calm; flexible

ANS: PTS: 1 DIF: 2 REF: 25
NAT: AACSB Analytic | Leadership Principles TYP: F

83. The benefits of using interim managers include:
a. an organization’s use of specialist skills
b. no long-term commitment for the organization
c. the manager has some flexibility
d. the manager faces new and interesting challenges
e. all of these

ANS: PTS: 1 DIF: 1 REF: 26
NAT: AACSB Analytic | Creation of Value TYP: F

84. ____ is not a force affecting transition from the old workplace to the new workplace..
a. Focus
b. Insourcing
c. Workforce
d. Technology
e. Pace

ANS: PTS: 1 DIF: 3 REF: 25
NAT: AACSB Analytic | Leadership Principles TYP: F

85. Success in the new workplace depends on the strength and quality of ____.
a. individual workers
b. independent teams
c. followers
d. collaborative relationships
e. vendors

ANS: PTS: 1 DIF: 2 REF: 26
NAT: AACSB Analytic | HRM TYP: F

86. __________ has become the new imperative, despite the need for companies to control costs in today’s economy.
a. Technology
b. Outsourcing
c. Innovation
d. Communication
e. Delegation

ANS: PTS: 1 DIF: 2 REF: 5
NAT: AACSB Analytic | Creation of Value TYP: F

87. With its “community of interest” in a pre-Facebook era, the Grateful Dead band’s ability to ________ is a principle factor for its success over several decades.
a. innovate
b. communicate
c. generate revenue
d. compete
e. monitor

ANS: PTS: 1 DIF: 2 REF: 5
NAT: AACSB Analytic | Creation of Value TYP: F

88. Regina, owner and operator of a small restaurant, believes that her most important task as manager is establishing goals for the restaurant and deciding what must be done to achieve them. This involves which aspect of what managers do?
a. Organizing
b. Motivating and communicating
c. Measuring
d. Developing people
e. Setting objectives

ANS: PTS: 1 DIF: 3 REF: 6
NAT: AACSB Analytic | Individual Dynamics TYP: A

89. Which of the following is a function of management?
a. Human resources
b. Raw materials
c. Efficiency
d. Planning
e. Effectiveness

ANS: PTS: 1 DIF: 1 REF: 7
NAT: AACSB Analytic | Creation of Value TYP: F

90. Robert, a top-level manager at an advertising agency, spends a significant part of his work day identifying goals for future organizational performance and deciding how to use resources to attain these goals. This involves which management function?
a. Controlling
b. Leading
c. Organizing
d. Planning
e. Delegating

ANS: PTS: 1 DIF: 3 REF: 7
NAT: AACSB Analytic | Individual Dynamics TYP: A

91. Problems within the finance industry in 2008 have been attributed to a breakdown in which managerial function?
a. Controlling
b. Leading
c. Organizing
d. Planning
e. Delegating

ANS: PTS: 1 DIF: 2 REF: 8
NAT: AACSB Analytic | Creation of Value TYP: F

92. By definition, an organization is considered ___________ because it is made up of two or more people.
a. efficient
b. a social entity
c. effective
d. goal-directed
e. deliberately structured

ANS: PTS: 1 DIF: 2 REF: 9
NAT: AACSB Analytic | Operations Management TYP: F

93. Jessica was recently praised by her supervisor for displaying superior customer service during an encounter with a problem customer. This is an example of organizational:
a. information processing
b. efficiency
c. effectiveness
d. structure
e. goal-setting

ANS: PTS: 1 DIF: 3 REF: 9
NAT: AACSB Analytic | Operations Management TYP: A

94. Stefan, a supermarket cashier, recently received an award for having the highest scan rate among all cashiers. This is an example of organizational:
a. performance
b. efficiency
c. effectiveness
d. structure
e. goal-setting

ANS: PTS: 1 DIF: 3 REF: 9
NAT: AACSB Analytic | Operations Management TYP: A

95. Within her role as a small business consultant, Alexa analyzes how organizations fit into their industries, the communities, and the broader social environment. This type of analysis involves which management skill?
a. Organizing
b. Technical
c. Human
d. Conceptual
e. Delegation

ANS: PTS: 1 DIF: 3 REF: 10
NAT: AACSB Analytic | Individual Dynamics TYP: A

96. Sabrina recently helped her subordinates at work resolve an interpersonal conflict by listening to the problem and serving as a mediator. This is an example of use of which management skill?
a. Human
b. Strategic
c. Technical
d. Conceptual
e. Analytical

ANS: PTS: 1 DIF: 3 REF: 11
NAT: AACSB Analytic | Individual Dynamics TYP: A

97. Sally is vice president of administration at a large non-profit charity for animals. She most likely falls within which management level?
a. CEO
b. Line employee
c. Staff manager
d. Top manager
e. Middle manager

ANS: PTS: 1 DIF: 2 REF: 13
NAT: AACSB Analytic | Individual Dynamics TYP: A

98. Shyloh is a research analyst who gets things done mostly through her own efforts, relying on herself rather than others. Shyloh can best be described as a(n):
a. First-line manager
b. Middle manager
c. Individual performer
d. Top manager
e. Functional manager

ANS: PTS: 1 DIF: 2 REF: 17
NAT: AACSB Analytic | Individual Dynamics TYP: A

CASE

Scenario – Barry Miller

The promotion to first line manager took place just six weeks ago for Barry Miller. He was well qualified for the promotion, but the new job still required a lot of training. One of the challenges has been to coordinate the production of his team with the needs of the sales department and with the availability of raw materials from his suppliers. Setting priorities and developing schedules to accomplish the work is a part of Barry’s job that he has really enjoyed. The challenges to maintain high rapport and to build a strong team with his employees have already brought him a lot of satisfaction. In reflecting about the last six weeks, Barry concludes that he is very happy about his new job.

1. In his job, Barry needs to
a. plan.
b. organize.
c. lead.
d. control.
e. all of these.

ANS:

PTS: 1 DIF: 2 REF: 6
NAT: AACSB Analytic | Leadership Principles KEY: Scenario Questions
TYP: A

2. The managerial skill that is least important at Barry’s middle-level management position is
a. conceptual.
b. human.
c. technical.
d. all of these skills are vital.
e. none of these skills are important.

ANS:

PTS: 1 DIF: 2 REF: 11
NAT: AACSB Analytic | Leadership Principles KEY: Scenario Questions
TYP: A

3. By maintaining information links, Barry Miller was exhibiting the interpersonal role of
a. figurehead.
b. leader.
c. liaison.
d. monitor.
e. spokesperson.

ANS:

PTS: 1 DIF: 2 REF: 21 NAT: AACSB Analytic | HRM
KEY: Scenario Questions TYP: A

4. With setting priorities and setting schedules, Barry was participating in the decisional role of
a. entrepreneur.
b. disturbance handler.
c. disseminator.
d. resource allocator.
e. monitor.

ANS:

PTS: 1 DIF: 2 REF: 21 NAT: AACSB Analytic | HRM
KEY: Scenario Questions TYP: A

COMPLETION

1. The nature of management is to cope with ____________________ and far-reaching challenges.

ANS:

PTS: 1 DIF: 2 REF: 4
NAT: AACSB Analytic | Leadership Principles TYP: F

2. ____________________ is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources.

ANS:

PTS: 1 DIF: 1 REF: 6
NAT: AACSB Analytic | Leadership Principles TYP: F

3. ____________________ is concerned with defining goals for future organizational performance.

ANS:

PTS: 1 DIF: 1 REF: 7
NAT: AACSB Analytic | Leadership Principles TYP: F

4. ____________________ involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization.

PTS: 1 DIF: 2 REF: 7
NAT: AACSB Analytic | Leadership Principles TYP: F

5. The management function that involves the use of influence to motivate employees to achieve the organization’s goals is referred to as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

6. ____________________ is the management function concerned with monitoring employees’ activities, keeping the organization on track toward its goals, and making corrections as needed.

PTS: 1 DIF: 2 REF: 8
NAT: AACSB Analytic | Leadership Principles TYP: F

7. A social entity that is goal directed and deliberately structured is called a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: F

8. The degree to which the organization achieves a stated goal is called ____________________.

ANS:ffectiveness

PTS: 1 DIF: 2 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: F

9. Organizational ____________________ refers to the amount of resources used to achieve an organizational goal.

PTS: 1 DIF: 2 REF: 9
NAT: AACSB Analytic | Creation of Value TYP: F

10. ____________________ skills refers to the cognitive ability to see the organization as a whole and the relationship among its parts.

ANS:

PTS: 1 DIF: 2 REF: 10 NAT: AACSB Analytic | HRM
TYP: F

11. Conceptual skills are especially important for ____________________ managers.

ANS:op

PTS: 1 DIF: 2 REF: 10 NAT: AACSB Analytic | HRM
TYP: F

12. ____________________ skills refers to the manager’s ability to work with and through other people and to work effectively as a group member.

ANS:

PTS: 1 DIF: 2 REF: 11 NAT: AACSB Analytic | HRM
TYP: F

13. ____________________ skills refers to the understanding and proficiency in the performance of specific tasks.

ANS:

PTS: 1 DIF: 2 REF: 11 NAT: AACSB Analytic | HRM
TYP: F

14. Department heads and division managers are examples of ____________________ managers.

ANS:

PTS: 1 DIF: 2 REF: 13
NAT: AACSB Analytic | Creation of Value TYP: F

15. ____________________ managers are directly responsible for the production of goods and services.

ANS:

PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: F

16. A(n) ____________________ is responsible for a temporary work project that involves the participation of people from various functions and levels of the organization, and perhaps from outside the company as well.

ANS:

PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: F

17. ____________________ are responsible for departments that perform a single functional task and have employees with similar training and skills.

ANS:unctional managers

PTS: 1 DIF: 2 REF: 14
NAT: AACSB Analytic | Creation of Value TYP: F

18. ____________________ are responsible for several departments that perform different functions.

ANS:

PTS: 1 DIF: 2 REF: 15
NAT: AACSB Analytic | Creation of Value TYP: F

19. The individual performer is a(n) ____________________; whereas, the manager has to be a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 17
NAT: AACSB Analytic | Leadership Principles TYP: F

20. In the ____________________ role, managers seek and receive information, scan periodicals and reports, and maintain personal contacts.

ANS:

PTS: 1 DIF: 2 REF: 20
NAT: AACSB Analytic | Leadership Principles TYP: F

21. In the ____________________ role, managers initiate improvement projects, identify new ideas, and delegate idea responsibility to others.

ANS:

PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

22. A(n) ____________________ would be responsible for performing ceremonial and symbolic duties such as greeting visitors and signing legal documents.

ANS:

PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

23. The ____________________ role involves deciding who gets what resources.

ANS: resource allocator

PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

24. If a manager finds several new competitors on the horizon, he or she may need to spend more time in the ____________________ role.

ANS:

PTS: 1 DIF: 2 REF: 22
NAT: AACSB Analytic | Leadership Principles TYP: F

25. One of the roles that a small business owner may emphasize over their counterpart in a large organization is that of a ____________________.

ANS: spokesperson

PTS: 1 DIF: 2 REF: 23
NAT: AACSB Analytic | Leadership Principles TYP: F

SHORT ANSWER

1. List five of Mintzberg’s ten managerial roles.

PTS: 1 DIF: 2 REF: 21
NAT: AACSB Analytic | Leadership Principles TYP: F

2. Identify the four functions of management.

ANS:

PTS: 1 DIF: 1 REF: 7
NAT: AACSB Analytic | Creation of Value TYP: F

3. List the three management skills necessary to perform effectively in organizations.

ANS:

PTS: 1 DIF: 1 REF: 10-11
NAT: AACSB Analytic | Leadership Principles TYP: F

ESSAY

1. Define management and describe two important ideas expressed in the definition.

ANS:

PTS: 1 DIF: 2 REF: 6
NAT: AACSB Analytic | Leadership Principles TYP: F

2. Describe the four management functions.

ANS:

PTS: 1 DIF: 2 REF: 7
NAT: AACSB Analytic | Leadership Principles TYP: F

3. Describe the skills necessary for performing a manager’s job. Provide examples of each.

PTS: 1 DIF: 1 REF: 10 NAT: AACSB Analytic | HRM
TYP: F

4. Why are conceptual skills most important for top managers?

ANS:

PTS: 1 DIF: 1 REF: 10 NAT: AACSB Analytic | HRM
TYP: F

5. Briefly discuss the relationship between management skills and management level.

ANS:

PTS: 1 DIF: 2 REF: 10
NAT: AACSB Analytic | Creation of Value TYP: F

6. What are technical skills? At what level are they most important and why?

ANS:

PTS: 1 DIF: 2 REF: 11
NAT: AACSB Analytic | Leadership Principles TYP: F

7. Describe the three categories of managerial roles and explain how do they differ.

ANS:

PTS: 1 DIF: 2 REF: 20
NAT: AACSB Analytic | Leadership Principles TYP: F

8. How do small business managers emphasize different management roles in comparison to larger business managers?

ANS:

PTS: 1 DIF: 3 REF: 23
NAT: AACSB Analytic | Leadership Principles TYP: F

9. Identify and explain the change that has affected organizations and management the most.

ANS:

PTS: 1 DIF: 2 REF: 24
NAT: AACSB Analytic | Environmental Influence TYP: F
Chapter 2—The Evolution of Management Thinking

TRUE/FALSE

1. A historical perspective provides a narrower way of thinking, a way of searching for patterns and determining whether they recur across time periods.

ANS PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Creation of Value TYP: F

2. Studying history is a way to achieve strategic thinking, see the big picture, and improve conceptual skills.

ANS PTS: 1 DIF: 2 REF: 34
NAT: AACSB Analytic | Strategy TYP: F

3. Social forces refer to those aspects of a culture that guide and influence relationships among people.

ANS PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F

4. Political forces are aspects of a culture that guide and influence relationships among people.

ANS PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F

5. Economic forces pertain to the availability, production, and distribution of resources in a society.

ANS PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F

6. In the Manager’s Shoptalk of chapter 2, benchmarking and six sigma are the top two contemporary management tools.

ANS PTS: 1 DIF: 2 REF: 52
NAT: AACSB Analytic | Operations Management TYP: F

7. The technology-driven workplace is the most current management perspective.

ANS PTS: 1 DIF: 2 REF: 35
NAT: AACSB Analytic | Information Technologies TYP: F

8. The early study of management as we know it today began with what is now called the technology-driven workplace.

ANS PTS: 1 DIF: 2 REF: 35
NAT: AACSB Technology | Information Technologies TYP: F

9. The classical perspective on management emerged during the early eighteenth century.

ANS PTS: 1 DIF: 2 REF: 35
NAT: AACSB Analytic | Leadership Principles TYP: F

10. A bar graph that measures planned and completed work along each stage of production by time elapsed is called a Gantt chart.

ANS PTS: 1 DIF: 1 REF: 36
NAT: AACSB Analytic | Creation of Value TYP: F

11. The humanistic perspective contains three subfields: scientific management, bureaucratic organizations, and administrative principles.

ANS PTS: 1 DIF: 2 REF: 36
NAT: AACSB Analytic | HRM TYP: F

12. One of the criticisms of scientific management is it did not acknowledge variance among individuals.

ANS PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | HRM TYP: F

13. Frederick W. Taylor developed Scientific Management and emphasized the fourteen principles of management that should guide managerial behavior.

ANS PTS: 1 DIF: 1 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F

14. Taylor was awarded the title of “father of scientific management” since he was the sole contributor in the area of scientific management.

ANS PTS: 1 DIF: 1 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F

15. Standardization of work and wage incentives are characteristics of behavioral science.

ANS PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | HRM TYP: F

16. Scientific management developed a standard method for performing each job.

ANS PTS: 1 DIF: 1 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F

17. With clear definitions of authority and responsibility, division of labor is one of the six characteristics of the ideal bureaucracy.

ANS PTS: 1 DIF: 1 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F

18. Administrative acts and decisions recorded in writing is one of the six characteristics of the ideal bureaucracy.

ANS PTS: 1 DIF: 1 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F

19. One of the important reasons for the success of UPS is the concept of bureaucracy.

ANS PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

20. Fayol’s unity of direction principle emphasizes that each subordinate receives orders from one, and only one superior.

ANS PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

21. Unity of direction principle proposes that similar activities in an organization should be grouped together under one manager.

ANS PTS: 1 DIF: 1 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

22. The scalar chain is a hypothetical chain that provides horizontal links between unionized workers in different departments in an organization.

ANS PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

23. Scientific management focuses on employee competence, whereas administrative principles focus on work flow through the organization.

ANS PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

24. Follett and Barnard were early advocates of a more humanistic perspective on management that emphasized the importance of understanding human behavior, needs, and attitudes in the workplace as well as social interactions and group processes.

ANS PTS: 1 DIF: 2 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F

25. Unfortunately, Mary Parker Follett’s approach to leadership stressed the importance of engineering techniques rather than people.

ANS PTS: 1 DIF: 2 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F

26. A social group within an organization is part of the informal organization.

ANS PTS: 1 DIF: 1 REF: 41
NAT: AACSB Analytic | Creation of Value TYP: F

27. Most early interpretations of the Hawthorne studies agreed that money was the cause of the increased output.

ANS PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | Motivation Concepts TYP: F

28. The Hawthorne studies led to the early conclusion that positive human relations can lead to significantly higher performance.

ANS PTS: 1 DIF: 1 REF: 42
NAT: AACSB Analytic | Motivation Concepts TYP: F

29. The scientific management perspective refers to the management thinking and practice that emphasizes satisfaction of employees’ basic needs as the key to increased worker productivity.

ANS PTS: 1 DIF: 2 REF: 45
NAT: AACSB Analytic | HRM TYP: F

30. Maslow’s hierarchy of needs started with belongingness, progressed to safety, and finally led to esteem.

ANS PTS: 1 DIF: 2 REF: 44
NAT: AACSB Analytic | Motivation Concepts TYP: F

31. According to Douglas McGregor, Theory X and Theory Y provide two opposing views of workers, where Theory X recognizes that workers enjoy achievement and responsibility, while Theory Y recognizes that workers will avoid work whenever possible.

ANS PTS: 1 DIF: 1 REF: 44
NAT: AACSB Analytic | Motivation Concepts TYP: F

32. Maslow’s hierarchy of needs started with safety needs.

ANS PTS: 1 DIF: 1 REF: 44
NAT: AACSB Analytic | HRM TYP: F

33. Theory Y proposes that organizations can take advantage of the imagination and intellect of all of their employees.

ANS PTS: 1 DIF: 2 REF: 44
NAT: AACSB Analytic | Motivation Concepts TYP: F

34. Organization development is a specific set of management techniques based in the behavioral science approach.

ANS PTS: 1 DIF: 1 REF: 45
NAT: AACSB Analytic | Creation of Value TYP: F

35. The behavioral science approach develops theories about human behavior based on scientific methods and study.

ANS PTS: 1 DIF: 1 REF: 44
NAT: AACSB Analytic | Leadership Principles TYP: F

36. The field of management that specializes in the physical production of goods or services refers to operations management.

ANS PTS: 1 DIF: 1 REF: 46
NAT: AACSB Analytic | Operations Management TYP: F

37. Operations management represents the field of management that specializes in the physical production of goods and services.

ANS PTS: 1 DIF: 1 REF: 46
NAT: AACSB Analytic | Operations Management TYP: F

38. The management science perspective emerged after World War II to treat problems associated with improving manufacturing.

ANS PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Leadership Principles TYP: F

39. When the shop foreman receives and rewards valuable suggestions from its workers, and this leads to continual improvement of production, synergy has occurred.

ANS PTS: 1 DIF: 2 REF: 48
NAT: AACSB Analytic | Creation of Value TYP: A

40. Contingency theory suggests that managers are more successful if they learn the best way to manage and motivate their employees, and then apply this knowledge in a universally consistent way.

ANS PTS: 1 DIF: 2 REF: 49
NAT: AACSB Analytic | Leadership Principles TYP: A

41. A contingency view perceives every situation as unique.

ANS PTS: 1 DIF: 2 REF: 49
NAT: AACSB Analytic | Strategy TYP: F

42. The inherent focus of TQM is on managing the total organization to deliver quality to the customer.

ANS PTS: 1 DIF: 1 REF: 49
NAT: AACSB Analytic | Creation of Value TYP: F

43. Benchmarking involves finding out what the customer wants.

ANS PTS: 1 DIF: 2 REF: 49-50
NAT: AACSB Analytic | Creation of Value TYP: F

44. The implementation of small, incremental improvements in all areas of the organization on an ongoing basis refers to continuous improvement.

ANS PTS: 1 DIF: 1 REF: 50
NAT: AACSB Analytic | Creation of Value TYP: F

45. Supply chain management refers to the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers.

ANS PTS: 1 DIF: 1 REF: 50
NAT: AACSB Analytic | Creation of Value TYP: F

46. The sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers refers to CRM.

ANS PTS: 1 DIF: 2 REF: 53
NAT: AACSB Analytic | Creation of Value TYP: F

47. Customer relationship management systems collect and manage large amounts of data about customers and make them available to employees.

ANS PTS: 1 DIF: 1 REF: 53
NAT: AACSB Technology | Creation of Value TYP: F

48. A supply chain is a network of multiple businesses and individuals that are connected through the flow of products or services.

ANS PTS: 1 DIF: 1 REF: 54
NAT: AACSB Analytic | Creation of Value TYP: F

49. Outsourcing refers to contracting out selected functions or activities to other organizations that can do the work more cost-efficiently.

ANS PTS: 1 DIF: 1 REF: 53
NAT: AACSB Analytic | Creation of Value TYP: F

50. A process whereby companies find out how others do something better than they do and then try to imitate or improve on it refers to outsourcing.

ANS PTS: 1 DIF: 1 REF: 53
NAT: AACSB Analytic | Creation of Value TYP: F

51. Kaizen refers to an innovation mindset, used widely by Indian companies, that strives to meet customers’ immediate needs quickly and inexpensively.

ANS PTS: 1 DIF: 2 REF: 33
NAT: AACSB Analytic | Creation of Value TYP: F

52. The changing attitudes, ideas, and values of Generation Y employees is an example of a social force.

ANS PTS: 1 DIF: 2 REF: 34
NAT: AACSB Analytic | Creation of Value TYP: F

53. Scientific management evolved with the use of precise procedures in place of tradition and rules of thumb.

ANS PTS: 1 DIF: 2 REF: 36
NAT: AACSB Analytic | Operations Management TYP: F

54. A criticism of human relations management is that it ignores the social context and workers’ needs.

ANS PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | Group Dynamics TYP: F

55. The acceptance theory of authority states that people have free will and can choose whether to follow management orders.

ANS PTS: 1 DIF: 2 REF: 41
NAT: AACSB Analytic | Group Dynamics TYP: F

56. The Hawthorne studies resulted in the movement towards scientific management.

ANS PTS: 1 DIF: 2 REF: 41
NAT: AACSB Analytic | Operations Management TYP: F

57. The human relations movement is also referred to as the dairy farm view of management, meaning that contented cows give more milk, and satisfied workers will give more work.

ANS PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | Motivation Concepts TYP: F

58. An assumption of Theory Y is that the average human being has an inherent dislike of work and will avoid it if possible.

ANS PTS: 1 DIF: 1 REF: 45
NAT: AACSB Analytic | Motivation Concepts TYP: F

59. The management science approach uses qualitative data in management decision making.

ANS PTS: 1 DIF: 1 REF: 46
NAT: AACSB Analytic | Operations Management TYP: F

60. Information technology is the most recent subfield of the quantitative perspective.

ANS PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Information Technologies TYP: F

61. The term “quants” refers to financial managers and others who base their decisions on complex quantitative analysis, under assumption that using advanced mathematics and technology can accurately predict how the market works.

ANS PTS: 1 DIF: 2 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: F

62. Contingency thinking is the ability to see both the distinct elements of a system or situation and the complex and changing interaction among those elements.

ANS PTS: 1 DIF: 2 REF: 47
NAT: AACSB Analytic | Operations Management TYP: F

63. Discerning circles of causality is an important element of systems thinking.

ANS PTS: 1 DIF: 2 REF: 48
NAT: AACSB Analytic | Operations Management TYP: F

64. Although developed by a Japanese business manager, the quality movement is strongly associated with American companies.

ANS PTS: 1 DIF: 2 REF: 49
NAT: AACSB Analytic | Operations Management TYP: F

65. Research shows that during difficult times in the business environment, managers are less likely to look for fresh ideas than they would during good times.

ANS PTS: 1 DIF: 2 REF: 51
NAT: AACSB Analytic | Leadership Principles TYP: F

MULTIPLE CHOICE

1. A(n) ____ perspective provides a broader way of thinking, a way of searching for patterns and determining whether they recur across time periods.
a. analytical
b. futuristic
c. systematic
d. methodical
e. historical

ANS PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F

2. ____ forces refer to those aspects of a culture that guide and influence relationships among people.
a. Social
b. Political
c. Economic
d. Technological
e. Legal

ANS PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F

3. Which of these forces comprises unwritten, common rules and perceptions about relationships?
a. Economic forces
b. Political forces
c. Social forces
d. Legal forces
e. Personal forces

ANS PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F

4. Which of these forces pertain to the availability, production, and distribution of resources in a society?
a. Social
b. Political
c. Economic
d. Technological
e. Legal

ANS PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F

5. Strong anti-American sentiments in many parts of the world exemplify the effect of
a. economic forces.
b. political forces.
c. demographic forces.
d. technological forces.
e. human relations forces.

ANS PTS: 1 DIF: 3 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: A

6. According to the Manager’s Shoptalk of chapter 2, which of the following is not in the top five contemporary management tools?
a. Collaborative innovation
b. Mission and vision statements
c. Benchmarking
d. Strategic planning
e. Customer relationship management

ANS PTS: 1 DIF: 3 REF: 52
NAT: AACSB Analytic | HRM TYP: F

7. According to the Manager’s Shoptalk of chapter 2, Indian executives are more likely to use tools such as
a. customer segmentation and business process reengineering.
b. consumer ethnography and corporate blogs.
c. strategic alliances and collaborative innovation.
d. activity-based management and virtual teams.
e. scenario planning and lean operations.

ANS PTS: 1 DIF: 3 REF: 52
NAT: AACSB Analytic | Strategy TYP: F

8. ____ is the most current management perspective.
a. Total quality management
b. Contingency views
c. Systems theory
d. Open (collaborative) innovation
e. Classical perspective

ANS PTS: 1 DIF: 2 REF: 35
NAT: AACSB Analytic | Leadership Principles TYP: F

9. The nineteenth and early twentieth centuries saw the development of which management perspective?
a. The human relations movement
b. The behavioral sciences approach
c. The classical perspective
d. The quantitative management approach
e. The TQM approach

ANS PTS: 1 DIF: 2 REF: 35
NAT: AACSB Analytic | Leadership Principles TYP: F

10. Which of these perspectives emphasized a rational, scientific approach to the study of management and sought to make organizations efficient operating machines?
a. The Humanistic Perspective
b. The Behavioral Sciences Approach
c. The Classical Perspective
d. The TQM approach
e. The Quantitative Management Approach

ANS PTS: 1 DIF: 1 REF: 35-36
NAT: AACSB Analytic | Leadership Principles TYP: F

11. Which of these is a subfield of the classical management perspective that emphasized scientifically determined changes in management practices as the solution to improving labor productivity?
a. The human relations movement
b. The behavioral sciences approach
c. The TQM approach
d. The quantitative management approach
e. The scientific management movement

ANS PTS: 1 DIF: 1 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F

12. Frank Gilbreth felt that efficiency equated with ____.
a. one best way to do work
b. leadership flows from the top down
c. procedures and policies
d. scientific management
e. bureaucracy

ANS PTS: 1 DIF: 2 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F

13. Who is considered the “first lady of management?”
a. Mary Parker Follett
b. Lillian Gilbreth
c. Carly Fiorona
d. Maxine Weber
e. Anne Adams

ANS PTS: 1 DIF: 2 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F

14. The three subfields of the classical perspective include
a. quantitative management, behavioral science, and administrative management.
b. bureaucratic organization, quantitative management, and the human relations movement.
c. administrative management, bureaucratic organization, and scientific management.
d. scientific management, quantitative management, and administrative management.
e. none of these.

ANS PTS: 1 DIF: 2 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F

15. ____ is considered the “father of scientific management.”
a. Frank B. Gilbreth
b. Elton Mayo
c. Henry Gantt
d. Douglas McGregor
e. Frederick W. Taylor

ANS PTS: 1 DIF: 1 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F

16. Which of the following is a bar graph that measures planned and completed work along each stage of production by time elapsed?
a. Time and Work chart
b. Gantt chart
c. Time and Motion chart
d. Production and Delivery chart
e. Gilbreth chart

ANS PTS: 1 DIF: 1 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F

17. Frederick Taylor’s contributions were in the field of
a. scientific management.
b. human resource management.
c. human relations.
d. quantitative management.
e. total quality management.

ANS PTS: 1 DIF: 1 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F

18. Which of the following is not a criticism of scientific management?
a. It does not appreciate the social context of work.
b. It does not appreciate the higher needs of workers.
c. It does not appreciate the careful study of tasks and jobs.
d. It does not acknowledge variance among individuals.
e. It tends to regard workers as uninformed and ignored their ideas and suggestions.

ANS PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F

19. Standardization of work and wage incentives are characteristics of
a. bureaucratic organizations.
b. scientific management.
c. quantitative management.
d. administrative management.
e. behavioral science.

ANS PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F

20. Which of these is a major criticism of scientific management?
a. It ignored the social context of work.
b. It ignored the impact of compensation on performance.
c. It overemphasized individual differences.
d. It overemphasized the intelligence of workers.
e. It emphasized the social context of work.

ANS PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F

21. The bureaucratic organizations approach is a subfield within the ____.
a. classical perspective
b. systems theory
c. scientific management
d. learning organization
e. management science view

ANS PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F

22. According to Weber’s ideas on bureaucracy, organizations should be based on which of these?
a. Personal loyalty
b. Personal references
c. Rational authority
d. Family ties
e. Charismatic authority

ANS PTS: 1 DIF: 2 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F

23. Archies’ Antiques, Inc., is characterized by separation of management from ownership and by clearly defined lines of authority and responsibility. These characteristics are consistent with the principles of
a. scientific management.
b. bureaucratic organizations.
c. administrative management theory.
d. human resource management.
e. all of these.

ANS PTS: 1 DIF: 2 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: A

24. All of the following are characteristics of Weberian bureaucracy EXCEPT:
a. Labor is divided with clear definitions of authority and responsibility that are legitimized as official duties.
b. Positions are organized in a hierarchy of authority, with each position under the authority of a higher one.
c. All personnel are selected and promoted based on technical qualifications.
d. Administrative acts and decisions are recorded in writing.
e. Management is the same as the ownership of the organization.

ANS PTS: 1 DIF: 3 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F

25. Max Weber felt selection of employees should be based on:
a. education
b. competence
c. connections
d. political skills
e. efficient systems

ANS PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

26. Positions organized in a hierarchy of authority is an important characteristic of
a. scientific management.
b. bureaucratic organizations.
c. quantitative management.
d. the human relations movement.
e. total quality management.

ANS PTS: 1 DIF: 1 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

27. UPS is successful in the small package delivery market. One important reason for this success is the concept of
a. globalization.
b. employee flexibility.
c. loose standards.
d. bureaucracy.
e. non-bureaucratic organizational system.

ANS PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

28. Whereas scientific management focused on ______ , administrative principles approach focused on the _______.
a. individual productivity, total organization
b. organization productivity, individual effort
c. efficient procedures, management by principle
d. employee ability, employee loyalty
e. employee competence, work flow through the organization

ANS PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

29. Mary Parker Follett contributed to which field?
a. Humanistic approach
b. Scientific management approach
c. Total quality management approach
d. Quantitative approach to management
e. Systems approach to management

ANS PTS: 1 DIF: 1 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F

30. The assembly line is most consistent with which of the following general principles of management?
a. Unity of command
b. Division of work
c. Authority
d. Scalar chain
e. Quality management

ANS PTS: 1 DIF: 3 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: A

31. The principle that similar activities in an organization should be grouped together under one manager is the essence of the classical perspective known as
a. unity of command.
b. division of work.
c. unity of direction.
d. scalar chain.
e. quality management.

ANS PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

32. The use of specialization to produce more and better work with the same level of effort is consistent with the administrative management principle of
a. unity of command.
b. unity of direction.
c. scalar chain.
d. division of work.
e. none of these

ANS PTS: 1 DIF: 1 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

33. The ____ refers to a chain of authority extending from top to the bottom of the organization and including every employee.
a. unity of command
b. division of labor
c. unity of direction
d. scalar chain
e. None of these

ANS PTS: 1 DIF: 1 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

34. Mary Parker Follett thought of leadership as ____, rather than techniques.
a. systems
b. top managers
c. people
d. efficiencies
e. floor managers

ANS PTS: 1 DIF: 2 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F

35. Chester Bernard felt that ____ could help a poorly managed organization.
a. bureaucracy
b. line managers
c. efficiencies
d. informal relations
e. top/down flow of information

ANS PTS: 1 DIF: 2 REF: 41
NAT: AACSB Analytic | Leadership Principles TYP: F

36. A social group within an organization is part of the
a. formal organizational structure.
b. informal organization.
c. scalar chain.
d. reorganization process.
e. top management level.

ANS PTS: 1 DIF: 1 REF: 41
NAT: AACSB Analytic | Leadership Principles TYP: F

37. A significant contribution of Chester Barnard was the concept of
a. bureaucracy.
b. the informal organization.
c. total quality management.
d. scientific management.
e. traditional theory of authority.

ANS PTS: 1 DIF: 1 REF: 41
NAT: AACSB Analytic | Leadership Principles TYP: F

38. The ____ emphasized the importance of understanding human behaviors, needs, and attitudes in the workplace as well as social interactions and group processes.
a. humanistic perspective
b. classical perspective
c. scientific management
d. bureaucratic organizations
e. contingency perspective

ANS PTS: 1 DIF: 1 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F

39. Which of these refers to the management thinking and practice that emphasizes satisfaction of employees’ basic needs as the key to increased worker productivity?
a. Scientific management perspective
b. Human resource perspective
c. Management science perspective
d. Behavioral sciences approach
e. Human relations movement

ANS PTS: 1 DIF: 2 REF: 45
NAT: AACSB Analytic | Leadership Principles TYP: F

40. Most early interpretations of the Hawthorne studies argued that the factor that best explained increased output was
a. money.
b. days off.
c. human relations.
d. lighting.
e. free food.

ANS PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | Motivation Concepts TYP: F

41. The findings provided by the Hawthorne Studies provided the impetus for the ____, despite flawed methodology or inaccurate conclusions.
a. classical perspective
b. humanistic perspective
c. scientific management
d. bureaucratic organizations
e. contingency perspective

ANS PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | Motivation Concepts TYP: F

42. The human resources perspective of management links motivation theories with ____.
a. top management
b. employee tasks
c. floor managers
d. efficiencies
e. profit maximization

ANS PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | HRM TYP: F

43. A “dairy farm” view of management, i.e., contented cows give more milk, so satisfied workers will give more work was espoused by
a. human relations management.
b. human resource perspective.
c. behavioral science approach.
d. management science perspective.
e. none of these.

ANS PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | Leadership Principles TYP: F

44. Maslow’s hierarchy of needs started with which of these needs?
a. Esteem
b. Love
c. Safety
d. Physiological
e. Belongingness

ANS PTS: 1 DIF: 1 REF: 44
NAT: AACSB Analytic | Motivation Concepts TYP: F

45. Tommy believes his employees are responsible, creative, and able to work with minimal direction. He is a
a. Theory X manager.
b. Theory Y manager.
c. Theory Z manager.
d. Theory A manager.
e. contingency theory manager.

ANS PTS: 1 DIF: 2 REF: 44
NAT: AACSB Analytic | Motivation Concepts TYP: A

46. Beth Brant, production supervisor at Trustworthy Tools Mfg., Inc. believes that her employees dislike work, avoid responsibility, and therefore they need to be controlled and directed. Beth is a
a. Theory X manager.
b. Theory Y manager.
c. realistic manager.
d. Theory Z manager.
e. Theory J manager.

ANS PTS: 1 DIF: 3 REF: 44
NAT: AACSB Analytic | Motivation Concepts TYP: A

47. According to Douglas McGregor, the classical perspective on management is consistent with which of the following?
a. Theory X manager
b. Theory Y manager
c. Theory Z manager
d. Theory A manager
e. None of these

ANS PTS: 1 DIF: 2 REF: 44
NAT: AACSB Analytic | Motivation Concepts TYP: F

48. The behavioral sciences approach is based on which of the following disciplines?
a. Anthropology
b. Economics
c. Sociology
d. Psychology
e. All of these

ANS PTS: 1 DIF: 1 REF: 44
NAT: AACSB Analytic | Leadership Principles TYP: F

49. Organizational development is one specific set of management techniques based in the ____ approach.
a. management science
b. systems theory
c. behavioral sciences
d. scientific management
e. quantitative

ANS PTS: 1 DIF: 2 REF: 45
NAT: AACSB Analytic | Creation of Value TYP: F

50. The management science perspective emerged after World War II to treat problems associated with
a. modern global warfare.
b. environmental issues.
c. employee involvement.
d. Germany.
e. improving manufacturing.

ANS PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Operations Management TYP: F

51. The management science perspective applies all of the following to managerial problems EXCEPT
a. statistics.
b. qualitative techniques.
c. mathematics.
d. quantitative techniques.
e. all of these are correct.

ANS PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Operations Management TYP: F

52. Operations research grew out of World War II groups and is based on ____.
a. group dynamics
b. employees in crisis
c. production in turbulent times
d. mathematical equations
e. a humanistic approach

ANS PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Operations Management TYP: F

53. The teamwork philosophy is based in part on the assumption that five people working together can produce more than five people working individually. This philosophy is consistent with the concept of
a. transformation.
b. entropy.
c. synergy.
d. feedback.
e. quality.

ANS PTS: 1 DIF: 3 REF: 48
NAT: AACSB Analytic | Creation of Value TYP: A

54. 10 + 10 = 25 reflects which of these?
a. Entropy
b. Synergy
c. Open system
d. Closed system
e. Weberian math

ANS PTS: 1 DIF: 3 REF: 48
NAT: AACSB Analytic | Creation of Value TYP: F

55. In ____ every situation is viewed as unique.
a. a universalist view
b. a contingency view
c. a case view
d. scientific management view
e. None of these

ANS PTS: 1 DIF: 2 REF: 49
NAT: AACSB Analytic | Leadership Principles TYP: F

56. It is often difficult to make decisions about subsystems, because they are ____.
a. interdependent
b. independent
c. managed differently
d. filled with employees
e. organizationally based

ANS PTS: 1 DIF: 2 REF: 48
NAT: AACSB Analytic | Creation of Value TYP: F

57. In order to determine how to deal with a problem employee, Sharon evaluated the employee, the problem, and the context in which the problem occurred. She is applying which of the following perspectives?
a. Participative view
b. Universalist view
c. Autonomy view
d. Contingency view
e. Humanist view

ANS PTS: 1 DIF: 3 REF: 49
NAT: AACSB Analytic | Leadership Principles TYP: A

58. A consultant who recommends the effectiveness of sensitivity training to every organization he serves is violating the basics of which of the following perspectives?
a. Efficiency perspective
b. Universalist perspective
c. Contingency perspective
d. Scientific management perspective
e. Quantitative perspective

ANS PTS: 1 DIF: 2 REF: 49
NAT: AACSB Analytic | Leadership Principles TYP: A

59. Which of the following is often considered the “father of the quality movement?”
a. Weber
b. Gilbreth
c. Follett
d. Deming
e. Gehrke

ANS PTS: 1 DIF: 2 REF: 49
NAT: AACSB Analytic | Leadership Principles TYP: F

60. ____ focuses on managing the whole organization to deliver quality to customers.
a. Bureaucracy
b. Theory Z
c. Management-by-objective
d. Total Quality Management
e. Organization-customer relationship

ANS PTS: 1 DIF: 1 REF: 49
NAT: AACSB Analytic | Leadership Principles TYP: F

61. Elements of TQM include
a. employee detachment.
b. focus on profits.
c. benchmarking.
d. accidental improvement.
e. all of these.

ANS PTS: 1 DIF: 1 REF: 49
NAT: AACSB Analytic | Leadership Principles TYP: F

62. ____ is a process whereby companies find out how others do something better than they do and then try to imitate or improve on it.
a. TQM
b. Continuous improvement
c. Benchmarking
d. Empowerment
e. MBO

ANS PTS: 1 DIF: 1 REF: 49- 50
NAT: AACSB Analytic | Leadership Principles TYP: F

63. The implementation of small incremental improvements in all areas of the organization on an ongoing basis is referred to as
a. benchmarking.
b. empowerment.
c. systems theory.
d. contingency perspective.
e. continuous improvement.

ANS PTS: 1 DIF: 1 REF: 50
NAT: AACSB Analytic | Creation of Value TYP: F

64. Which of the following refers to managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers?
a. E-commerce
b. E-business
c. Supply chain management
d. Knowledge management
e. Customer relationship management

ANS PTS: 1 DIF: 2 REF: 53
NAT: AACSB Technology | Creation of Value TYP: F

65. Which of the following uses the latest information technology to keep in close touch with customers and to collect and manage large amounts of customer data?
a. Supply Chain Management
b. Learning Organizations
c. Scientific Management
d. Customer Relationship Management
e. The Humanistic Approach

ANS PTS: 1 DIF: 1 REF: 53
NAT: AACSB Analytic | Information Technologies TYP: F

66. An innovation mindset that strives to meet customers’ immediate needs quickly and inexpensively is referred to as:
a. Kaizen
b. Just-in-time control
c. Total quality management
d. Jugaad
e. XY Theory

ANS PTS: 1 DIF: 2 REF: 33
NAT: AACSB Analytic | Creation of Value TYP: F

67. Jessica is a recent college graduate who is seeking a job that includes telecommuting, shared jobs, flextime, and organization-sponsored sabbaticals. Based on this information, Jessica most likely belongs to which demographic group?
a. Baby Boomer
b. Generation X
c. Generation Y
d. Generation Z
e. Tweener

ANS PTS: 1 DIF: 3 REF: 34
NAT: AACSB Analytic | Individual Dynamics TYP: A

68. Time and motion studies that resulted in drastic reduction in the time patients spent on the operating table were pioneered by:
a. Edward Deming
b. Henry Gantt
c. Max Weber
d. Mary Parker Follett
e. Frank Gilbreth

ANS PTS: 1 DIF: 2 REF: 36
NAT: AACSB Analytic | Operations Management TYP: F

69. Genex Dynamics is a ballistics company that uses the unity of command, scalar chain, and division of work principles. These are part of which management philosophy?
a. Administrative principles approach
b. Bureaucratic approach
c. Scientific management approach
d. Humanistic approach
e. Behavioral sciences approach

ANS PTS: 1 DIF: 3 REF: 39
NAT: AACSB Analytic | Operations Management TYP: A

70. Matrix Dress Designs operates using the concept of empowerment, where employees act independently and with management facilitating rather than controlling workers. These qualities represent which management approach?
a. Administrative principles approach
b. Bureaucratic approach
c. Scientific management approach
d. Humanistic approach
e. Behavioral sciences approach

ANS PTS: 1 DIF: 3 REF: 41
NAT: AACSB Analytic | Group Dynamics TYP: A

71. A key finding in the Hawthorne studies was which of these?
a. Stronger lighting increased productivity
b. More money resulted in increased productivity
c. Productivity declined in all experiments
d. Higher temperatures reduced productivity
e. Human relations increased productivity

ANS PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | Operations Management TYP: F

72. Theory X and Theory Y was developed by:
a. Douglas McGregor
b. Henry Gantt
c. Max Weber
d. Mary Parker Follett
e. Frank Gilbreth

ANS PTS: 1 DIF: 2 REF: 44
NAT: AACSB Analytic | Operations Management TYP: F

73. The Forestville Freeze is regionally known for its employee training programs. Managers at the Freeze conduct research to determine the best candidate interviewing techniques. This involves use of which management approach?
a. Administrative principles approach
b. Bureaucratic approach
c. Behavioral sciences approach
d. Humanistic approach
e. Scientific management approach

ANS PTS: 1 DIF: 3 REF: 44
NAT: AACSB Analytic | Motivational Concepts TYP: A

74. Within his role as a financial accountant, Roger uses the capital asset pricing model and other mathematical tools to help clients keep track of their finances. Which perspective or approach does Roger apply most at his work?
a. Quantitative perspective
b. Qualitative perspective
c. Humanistic approach
d. Behavioral science approach
e. Scientific management approach

ANS PTS: 1 DIF: 3 REF: 46
NAT: AACSB Analytic | Individual Dynamics TYP: A

75. The most recent subfield of the quantitative perspective is _________, which is reflected in management information systems designed to provide relevant information to managers in a timely and cost-efficient manner.
a. Operations research
b. Operations management
c. Information technology
d. Systems thinking
e. Infrastructure development

ANS PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Information Technologies TYP: F

76. Which of the following refers to financial managers and others who base their decisions on complex quantitative analysis, under assumption that using advanced mathematics and technology can accurately predict how the market works?
a. Stems
b. Yuppies
c. Quals
d. Quants
e. Fins

ANS PTS: 1 DIF: 2 REF: 47
NAT: AACSB Analytic | Information Technologies TYP: F

77. From the 1950s until today, which management perspective has remained the most prevalent?
a. Systems
b. Qualitative
c. Scientific management
d. Quantitative
e. Humanistic

ANS PTS: 1 DIF: 2 REF: 47
NAT: AACSB Analytic | Group Dynamics TYP: F

78. Georgia, an airline CEO, often looks for patterns of movement within the airline industry, focusing on the qualities of rhythm, flow, direction, shape, and networks of relationships. This type of activity, referred to as ________thinking, allows Georgia to see the structures that underlie complex situations within the industry and company.
a. systems
b. qualitative
c. quantitative
d. conceptual
e. contingency

ANS PTS: 1 DIF: 3 REF: 48
NAT: AACSB Analytic | Individual Dynamics TYP: A

79. After decades of being a manager, Jeffrey has learned that an organizational structure that is effective for one company is likely to be ineffective for a different company. This knowledge reflects which current management perspective?
a. Systems thinking
b. Contingency view
c. Total quality management
d. Benchmarking
e. Scientific management view

ANS PTS: 1 DIF: 2 REF: 49
NAT: AACSB Analytic | Individual Dynamics TYP: A

80. __________ specifies a goal of no more than 3.4 defects per million parts.
a. Benchmarking
b. Total quality management
c. Six sigma
d. Balanced scorecard
e. Jugaad

ANS PTS: 1 DIF: 2 REF: 50
NAT: AACSB Analytic | Operations Management TYP: F

81. Which of the following is identified as a recent trend that has staying power?
a. Corporate takeovers
b. Hedging
c. Insourcing
d. Relationship management
e. Task management

ANS PTS: 1 DIF: 2 REF: 51
NAT: AACSB Analytic | Environmental Influence TYP: F

CASE

Scenario – Britney Marr

The opportunity to gain a foothold in the snack cracker industry had just been found. Britney Marr, an account executive manager for Baked Wheat Industries had developed an interest in wheat crackers two months ago when one of her newly hired account execs, Amy Bender, had convinced her about the high margins and promising future associated with that market. Marr had always believed that if you do your homework in hiring the best people then it only makes sense to listen to their recommendations and implement their suggestions.

Marr had given her approval to Bender to explore opportunities to move into this promising new market. This morning, Bender had reported that the Jackson Corporation had severed its contract with Feel Good Crackers Incorporated. Apparently, the Feel Good salesman had shared sensitive information about Jackson at a cocktail party. Bender had already established a good relationship with Feel Good buyers and so recognized this as an opportunity to expand her market into wheat crackers.

1. Marr’s behavior provides an example of
a. the use of scalar rope.
b. division of organization.
c. the principle of inversion.
d. unity of direction.
e. all of these.

ANS

PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles KEY: Scenario Questions
TYP: A

2. Marr’s management style reflects a belief in
a. Theory Y.
b. developing her employees through control.
c. grieving theory.
d. all of these.
e. none of these.

ANS

PTS: 1 DIF: 2 REF: 44
NAT: AACSB Analytic | Leadership Principles KEY: Scenario Questions
TYP: A

3. From a System’s theory perspective
a. Marr should increase teamwork, leading to more entropy.
b. Marr should listen to and reward her people well to increase synergy.
c. the Jackson account was lost because Feel Good was too closed to its environment.
d. all of these.
e. none of these.

ANS

PTS: 1 DIF: 2 REF: 48
NAT: AACSB Analytic | Leadership Principles KEY: Scenario Questions
TYP: A

4. Contingency theory recommends
a. Marr should manage all of her employees the way she manages Bender.
b. the goal of every manager should be high return on investment, so Marr should expand her market only if it increases ROI.
c. Bender should focus on her expertise, recognizing the potential risk of failure with a new market.
d. all of these.
e. none of these.

ANS

PTS: 1 DIF: 2 REF: 49
NAT: AACSB Analytic | Leadership Principles KEY: Scenario Questions
TYP: A

COMPLETION

1. A(n) ____________________ perspective provides a broader way of thinking, a way of searching for patterns and determining whether they recur across time periods.

ANS:

PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F

2. ____________________ refer to the aspects of a culture that guide and influence relationships among people.

ANS:

PTS: 1 DIF: 2 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F

3. ____________________ refer to the influence of political and legal institutions on people and organizations.

ANS:

PTS: 1 DIF: 2 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F

4. ____________________ pertain to the availability, production, and distribution of resources in a society.

ANSconomic forces

PTS: 1 DIF: 2 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F

5. A management perspective that emerged during the nineteenth and early twentieth centuries that emphasized a rational, scientific approach to the study of management and sought to make organizations efficient operating machines is called ____________________.

Anslassical perspective

PTS: 1 DIF: 2 REF: 35
NAT: AACSB Analytic | Leadership Principles TYP: F

6. ____________________ is considered the “father of scientific management.”

ANSrederick W. Taylor

PTS: 1 DIF: 1 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F

7. Weber’s vision of organizations that would be managed on an impersonal, rational basis is called a(n) ____________________.

Ansureaucracy

PTS: 1 DIF: 2 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F

8. A subfield of the classical management perspective that focused on the total organization rather than the individual worker, delineating the management functions of planning, organizing, commanding, coordinating, and controlling is called ____________________.

Ansdministrative principles

PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

9. According to Fayol, similar activities in an organization should be grouped together under one manager. This administrative principle is known as ____________________.

ANS:

PTS: 1 DIF: 3 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F

10. A management perspective that emerged around the late nineteenth century that emphasized understanding human behavior, needs, and attitudes in the workplace is referred to as a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F

11. A management perspective that suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential is called a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | Leadership Principles TYP: F

12. Organizational development is one specific set of management techniques based in the ____________________ approach.

Ansehavioral sciences

PTS: 1 DIF: 2 REF: 45
NAT: AACSB Analytic | Creation of Value TYP: F

13. A management perspective that emerged after World War II, and applied mathematics, statistics, and other quantitative techniques to managerial problems is referred to as a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Leadership Principles TYP: F

14. ____________________ refers to the field of management that specializes in the physical production of goods or services.

ANS:

PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Leadership Principles TYP: F

15. The concept that the whole is greater than the sum of its parts is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 48
NAT: AACSB Analytic | Creation of Value TYP: F

16. The ____________________ view of management is an integration of the case and universalist viewpoints.

Ansontingency

PTS: 1 DIF: 2 REF: 49
NAT: AACSB Analytic | Leadership Principles TYP: F

17. The process by which companies find out how others do something better than they do and then try to copy and/or improve it is known as ____________________.

Ansenchmarking

PTS: 1 DIF: 2 REF: 49-50
NAT: AACSB Analytic | Leadership Principles TYP: F

18. ____________________ refers to the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers.

ANS:

PTS: 1 DIF: 2 REF: 53
NAT: AACSB Analytic | Creation of Value TYP: F

19. ____________________ collect and manage large amounts of data about customers and make them available to employees, enabling better decision making and superior customer service.

ANS:

PTS: 1 DIF: 2 REF: 53
NAT: AACSB Analytic | Creation of Value TYP: F

20. ____________________ refers to contracting out selected functions or activities to other organizations that can do the work more cost-efficiently.

ANS:

PTS: 1 DIF: 2 REF: 53
NAT: AACSB Analytic | Creation of Value TYP: F

SHORT ANSWER

1. List three of the basic ideas of scientific management.

ANS:

PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F

2. List the three assumptions associated with McGregor’s Theory X.

ANS:
PTS: 1 DIF: 3 REF: 45
NAT: AACSB Analytic | Motivation Concepts TYP: F

ESSAY

1. The writings of Fayol, Taylor, and Weber provide the foundation for modern management. Identify the school of thought associated with each writer and compare the focus that each writer takes in relation to the organization.

ANS:

PTS: 1 DIF: 2 REF: 36-39
NAT: AACSB Analytic | Creation of Value TYP: F

2. Discuss the advantages and disadvantages of Taylor’s Scientific Management.

ANS:

PTS: 1 DIF: 2 REF: 36-37
NAT: AACSB Analytic | Creation of Value TYP: F

3. Briefly describe what happened in the Hawthorne Studies and explain the results and conclusions of these studies.

ANS:
PTS: 1 DIF: 3 REF: 42
NAT: AACSB Analytic | Creation of Value TYP: F

4. Describe the assumptions behind McGregor’s Theory X and Theory Y. How do the theories relate to the classical perspective on management and early human relations ideas?

ANS:

PTS: 1 DIF: 3 REF: 44
NAT: AACSB Analytic | Creation of Value TYP: F

5. Briefly describe systems theory, including synergy.

ANS:

PTS: 1 DIF: 2 REF: 48
NAT: AACSB Analytic | Creation of Value TYP: F

6. Discuss the differences between the case view, the universalist view, and the contingency view.

ANS:

PTS: 1 DIF: 2 REF: 49
NAT: AACSB Analytic | Creation of Value TYP: F
Chapter 3—The Environment and Corporate Culture

TRUE/FALSE

1. While Blockbuster has closed hundreds of stores and is likely to file for bankruptcy, Netflix expanded its customer base to over 13 million.

ANS: PTS: 1 DIF: 2 REF: 61
NAT: AACSB Analytic | Environmental Influence TYP: F

2. Factors external to the organizations have been primarily the focus of management as a discipline.

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

3. The general environment and the task environment are the two layers of an organization’s external environment.

ANS: PTS: 1 DIF: 1 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

4. The outer layer, the general environment, is widely dispersed and affects organizations directly.

ANS: PTS: 1 DIF: 1 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

5. To be effective, managers must monitor and respond to the environment — a closed-systems view.

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

6. Customers and competitors are two important sectors of the economic dimension of a firm’s general environment.

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

7. Current employees, management, and especially corporate culture are part of an organization’s internal environment.

ANS: PTS: 1 DIF: 1 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

8. The international dimension of the external environment represents events originating in foreign countries as well as opportunities for U.S. companies in other countries.

ANS: PTS: 1 DIF: 1 REF: 63
NAT: AACSB Analytic | Environmental Influence TYP: F

9. In recent years, the most dramatic change in the international environment is the shift of economic power to Germany and France.

ANS: PTS: 1 DIF: 1 REF: 63
NAT: AACSB Analytic | Environmental Influence TYP: F

10. The technological dimension of the external environment includes scientific and technological advancements in a specific industry as well as in society at large.

ANS: PTS: 1 DIF: 1 REF: 63
NAT: AACSB Analytic | Environmental Influence TYP: F

11. The sociocultural dimension of the general environment includes societal norms and values.

ANS: PTS: 1 DIF: 1 REF: 65
NAT: AACSB Analytic | Environmental Influence TYP: F

12. The international dimension includes scientific and technological advancements in a specific industry as well as in society at large.

ANS: PTS: 1 DIF: 2 REF: 63
NAT: AACSB Analytic | Information Technologies TYP: F

13. According to Manager’s Shoptalk in Chapter 3, the Chinese concept of guanxi is a supportive, mutually beneficial connection between two people.

ANS: PTS: 1 DIF: 1 REF: 64
NAT: AACSB Analytic | Environmental Influence TYP: F

14. According to Manager’s Shoptalk in chapter 3, one of the rules of doing business in China is remembering that relationships are short-term.

ANS: PTS: 1 DIF: 1 REF: 64
NAT: AACSB Analytic | Environmental Influence TYP: F

15. Economic problems in other parts of the world have a tremendous impact on U.S. companies.

ANS: PTS: 1 DIF: 2 REF: 65-66
NAT: AACSB Analytic | Environmental Influence TYP: F

16. The economic dimension of the general environment represents the demographic characteristics.

ANS: PTS: 1 DIF: 2 REF: 65
NAT: AACSB Analytic | Environmental Influence TYP: F

17. The economic dimension of the general environment includes consumer purchasing power.

ANS: PTS: 1 DIF: 1 REF: 65
NAT: AACSB Analytic | Environmental Influence TYP: F

18. An example of part of the legal-political dimension of the general environment is a government’s report on the decline of unemployment rate.

ANS: PTS: 1 DIF: 3 REF: 66
NAT: AACSB Analytic | Environmental Influence TYP: A

19. President Clinton’s signing of the telecommunications bill in 1996 deregulating the industry is an example of the legal-political dimension of the general environment.

ANS: PTS: 1 DIF: 3 REF: 66
NAT: AACSB Analytic | Environmental Influence TYP: F

20. The task environmental dimension includes all elements that occur naturally on earth, including plants, animals, rocks, and natural resources such as air, water, and climate.

ANS: PTS: 1 DIF: 2 REF: 67
NAT: AACSB Analytic | Environmental Influence TYP: F

21. Customers are the people and organizations in the environment who acquire goods or services from the organization.

ANS: PTS: 1 DIF: 1 REF: 68
NAT: AACSB Analytic | Environmental Influence TYP: F

22. Recently, there has been strong concern about climate change such as global warming caused by greenhouse gases, most notably carbon dioxide.

ANS: PTS: 1 DIF: 2 REF: 67
NAT: AACSB Analytic | Environmental Influence TYP: F

23. McDonalds, Burger King, and Checkers are competitors since all three sell fast food to individuals.

ANS: PTS: 1 DIF: 2 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: A

24. The raw materials that organizations use to produce its outputs are provided by customers.

ANS: PTS: 1 DIF: 1 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: F

25. Other organizations in the same industry or type of business that provide goods or services to the same set of customers are referred to as suppliers.

ANS: PTS: 1 DIF: 1 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: F

26. The labor market is made up by people in the environment who can be hired to work for an organization.

ANS: PTS: 1 DIF: 1 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: F

27. If Johnson Lumber provides trees for Westvaco Paper Manufacturing, then Johnson Lumber is considered a supplier for Westvaco.

ANS: PTS: 1 DIF: 2 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: A

28. Organizations must manage environmental uncertainty to be effective.

ANS: PTS: 1 DIF: 1 REF: 70
NAT: AACSB Analytic | Environmental Influence TYP: F

29. An organization experiences high uncertainty when internal factors gradually change over time.

ANS: PTS: 1 DIF: 1 REF: 70
NAT: AACSB Analytic | Environmental Influence TYP: F

30. A merger is an effort to spot trends that enable managers to predict future events.

ANS: PTS: 1 DIF: 2 REF: 72
NAT: AACSB Analytic | Environmental Influence TYP: F

31. A sales executive for General Motors fills an essential boundary-spanning role.

ANS: PTS: 1 DIF: 3 REF: 72
NAT: AACSB Analytic | Environmental Influence TYP: A

32. Competitive intelligence professionals are really just in-house snoops who obtain information about other companies.

ANS: PTS: 1 DIF: 1 REF: 73
NAT: AACSB Analytic | Environmental Influence TYP: F

33. Competitive intelligence is an approach to boundary spanning which results from using sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant.

ANS: PTS: 1 DIF: 2 REF: 72
NAT: AACSB Analytic | Information Technologies TYP: F

34. More organizations are requiring all employees to perform boundary-spanning because environmental shifts can happen quickly.

ANS: PTS: 1 DIF: 2 REF: 72-73
NAT: AACSB Analytic | Environmental Influence TYP: F

35. Given the increasing environmental uncertainty, managers in partnering organizations are shifting from a partnership orientation to an adversarial orientation.

ANS: PTS: 1 DIF: 2 REF: 73
NAT: AACSB Analytic | Environmental Influence TYP: F

36. A joint venture involves a strategic alliance or program by two or more organizations.

ANS: PTS: 1 DIF: 1 REF: 74
NAT: AACSB Analytic | Environmental Influence TYP: F

37. Due to the stable environment and lack of technological change, mergers and joint ventures rarely occur in the U.S.

ANS: PTS: 1 DIF: 1 REF: 74
NAT: AACSB Analytic | Environmental Influence TYP: F

38. The internal environment within which managers work includes corporate culture, sociocultural aspects, and customers.

ANS: PTS: 1 DIF: 2 REF: 75
NAT: AACSB Analytic | Group Dynamics TYP: F

39. Culture can be defined as the ability to speak different languages.

ANS: PTS: 1 DIF: 1 REF: 75
NAT: AACSB Analytic | Environmental Influence TYP: F

40. Physical symbols are associated with the surface level of organizational culture.

ANS: PTS: 1 DIF: 2 REF: 75
NAT: AACSB Analytic | Environmental Influence TYP: F

41. Symbols, stories, heroes, slogans, and ceremonies combine to create an organization’s culture.

ANS: PTS: 1 DIF: 2 REF: 76
NAT: AACSB Analytic | Group Dynamics TYP: F

42. The set of key values, beliefs, and norms, that are shared by members of an organization are combined to create the symbols of an organization.

ANS: PTS: 1 DIF: 2 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

43. A symbol is a figure that exemplifies the deeds, character, and attributes of a corporate culture.

ANS: PTS: 1 DIF: 2 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

44. A narrative based on rumors within the organization that can lead to destructive results if not carefully controlled by management is called an organizational story.

ANS: PTS: 1 DIF: 2 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

45. A phrase or sentence that succinctly expresses a key corporate value is called a story.

ANS: PTS: 1 DIF: 1 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

46. The mythical sales representative at Robinson Jewelers who delivered a wedding ring directly to the church because the ring had been ordered late is an example of a hero.

ANS: PTS: 1 DIF: 1 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

47. A slogan is a phrase or sentence that succinctly expresses a key corporate value.

ANS: PTS: 1 DIF: 2 REF: 77
NAT: AACSB Analytic | HRM TYP: F

48. A ceremony is a planned activity at a special event that is conducted for the benefit of an audience.

ANS: PTS: 1 DIF: 1 REF: 77
NAT: AACSB Analytic | Motivation Concepts TYP: F

49. In adaptive cultures, managers are concerned with customers and processes that bring about useful change.

ANS: PTS: 1 DIF: 2 REF: 78
NAT: AACSB Analytic | Environmental Influence TYP: F

50. The achievement culture emerges in an environment that requires fast response and high-risk decision-making.

ANS: PTS: 1 DIF: 2 REF: 79
NAT: AACSB Analytic | Environmental Influence TYP: F

51. An achievement culture is found in an environment that is dynamic and requires high-risk decision-making.

ANS: PTS: 1 DIF: 2 REF: 79
NAT: AACSB Analytic | Group Dynamics TYP: F

52. The involvement culture is suited to organizations that are concerned with serving specific customers in the external environment but without the intense need for flexibility and rapid change.

ANS: PTS: 1 DIF: 2 REF: 79
NAT: AACSB Analytic | Group Dynamics TYP: F

53. A results-oriented culture that values competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results is called the achievement culture.

ANS: PTS: 1 DIF: 2 REF: 79
NAT: AACSB Analytic | Group Dynamics TYP: F

54. The bureaucratic culture has an external focus and a consistency orientation for a dynamic environment.

ANS: PTS: 1 DIF: 2 REF: 79
NAT: AACSB Analytic | Group Dynamics TYP: F

55. Corporate culture plays a key role in creating an organizational climate that enables learning and innovative responses to threats from the external environment, challenging new opportunities, or organizational crises.

ANS: PTS: 1 DIF: 2 REF: 81-82
NAT: AACSB Analytic | Environmental Influence TYP: F

56. When an organization pays little attention to either cultural values or business results, it is unlikely to survive for long.

ANS: PTS: 1 DIF: 1 REF: 82
NAT: AACSB Analytic | Group Dynamics TYP: F

57. When an organization pays little attention to cultural values and instead focuses on business results, success will be difficult to sustain in the long run.

ANS: PTS: 1 DIF: 1 REF: 82
NAT: AACSB Analytic | Group Dynamics TYP: F

58. Success will be difficult to sustain in the long run when an organization puts emphasis on both cultural values and business results.

ANS: PTS: 1 DIF: 1 REF: 82
NAT: AACSB Analytic | Group Dynamics TYP: F

59. In a high performance culture, organizations put high emphasis on both culture and solid business performance as drivers of organizational success.

ANS: PTS: 1 DIF: 1 REF: 82
NAT: AACSB Analytic | Group Dynamics TYP: F

60. A cultural leader defines and uses signals and symbols to influence corporate culture.

ANS: PTS: 1 DIF: 1 REF: 84
NAT: AACSB Analytic | Group Dynamics TYP: F

61. The cultural leader articulates a vision for the organizational culture that employees can believe in and that generates excitement.

ANS: PTS: 1 DIF: 1 REF: 84
NAT: AACSB Analytic | Group Dynamics TYP: F

62. Employees of an organization are considered part of the general environment.

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

63. In China, business tends to be more personal.

ANS: PTS: 1 DIF: 2 REF: 64
NAT: AACSB Analytic | Environmental Influence TYP: F

64. It is expected that the Hispanic population in the United States will shrink slightly over the next 30 years.

ANS: PTS: 1 DIF: 2 REF: 65
NAT: AACSB Analytic | Environmental Influence TYP: F

65. Over the last four years, the weakened U.S. economy has had a devastating impact on small business.

ANS: PTS: 1 DIF: 2 REF: 66
NAT: AACSB Analytic | Environmental Influence TYP: F

66. In 2010, Canada was the country with the highest environmental performance index score.

ANS: PTS: 1 DIF: 2 REF: 67
NAT: AACSB Analytic | Environmental Influence TYP: F

67. The most likely competitor for an automobile manufacturer would be a company in a different but related industry, such as a steel manufacturer.

ANS: PTS: 1 DIF: 2 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: A

68. Labor market forces affecting organizations right now include the growing need for computer-literate knowledge workers and the necessity for continuous investment in human resources through recruitment, education, and training.

ANS: PTS: 1 DIF: 2 REF: 69
NAT: AACSB Analytic | Information Technologies TYP: F

69. To be successful, companies should only involve top-level executives in boundary-spanning activities.

ANS: PTS: 1 DIF: 1 REF: 73
NAT: AACSB Analytic | Environmental Influence TYP: F

70. As managers are increasingly shifting to a partnering orientation as opposed to one that is adversarial in nature, the use of information sharing has increased.

ANS: PTS: 1 DIF: 1 REF: 73
NAT: AACSB Analytic | Environmental Influence TYP: F

71. Cultural values in organizations are rarely observed, but are rather deeply embedded to the extent that members are not consciously aware of them.

ANS: PTS: 1 DIF: 2 REF: 75
NAT: AACSB Analytic | Environmental Influence TYP: F

72. In determining what cultural values are important for the organization, managers should consider the external environment as well as the company’s strategy and goals.

ANS: PTS: 1 DIF: 2 REF: 78
NAT: AACSB Analytic | Environmental Influence TYP: F

73. In today’s business environment, most companies operate in a stable and rigid environment.

ANS: PTS: 1 DIF: 1 REF: 80
NAT: AACSB Analytic | Environmental Influence TYP: F

74. Quadrant C represents organizations that are focused primarily on bottom-line results and pay little attention to organizational values.

ANS: PTS: 1 DIF: 2 REF: 82
NAT: AACSB Analytic | Operations Management TYP: F

75. Companies in Quadrant D put high emphasis on both culture and solid business performance as drivers of organizational success.

ANS: PTS: 1 DIF: 2 REF: 82
NAT: AACSB Analytic | Operations Management TYP: F

76. Quadrant A organizations represent the high-performance culture, which is based on solid organizational mission and purpose, and adaptive values that guide decisions and business practices.

ANS: PTS: 1 DIF: 2 REF: 83
NAT: AACSB Analytic | Leadership Principles TYP: F

MULTIPLE CHOICE

1. The environments in which businesses operate are increasingly ____, requiring managers to be ready to react and respond to even subtle environmental shifts.
a. static
b. universal
c. constant
d. dynamic
e. traditional

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

2. ____ includes all elements existing outside the boundary of the organization that have the potential to affect the organization.
a. Organizational environment
b. Internal environment
c. Task environment
d. General environment
e. Technological environment

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

3. ____ system draws resources from the external environment and releases goods and services back to it.
a. Production
b. Closed
c. Open
d. Information
e. Management

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Creation of Value TYP: F

4. The ____ environment represents the outer layer of the environment and affects organizations ____.
a. task; indirectly
b. general; directly
c. internal; directly
d. internal; indirectly
e. general; indirectly

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

5. All of these are a part of an organization’s task environment EXCEPT
a. Customers
b. Labor markets
c. Competitors
d. Employers
e. Suppliers

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

6. Which of these is NOT a part of an organization’s general environment?
a. Technological
b. Economic
c. Competitors
d. Legal-political
e. Sociocultural

ANS: PTS: 1 DIF: 1 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

7. ____ is a part of Ford’s, the U.S. auto manufacturer, task environment.
a. Inflation rate
b. Chrysler
c. Securities and Exchange Commission (SEC), a government regulating agency
d. Amazon.com, an online bookseller
e. Ford’s corporate culture

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: A

8. ____ is a part of an organization’s internal environment.
a. Its customers
b. Its salespeople
c. The consumer price index
d. Its suppliers
e. Its competitors

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

9. Molly Madison received “The Employee of the Month” Award at Internal Workings Remodeling Service in April. Molly would be considered a part of which of these for Internal Workings?
a. General environment
b. Task environment
c. Economic environment
d. Internal environment
e. Political activity

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: A

10. The ____ of the external environment represents events originating in foreign countries as well as opportunities for American companies in other countries.
a. National dimension
b. Global dimension
c. International dimension
d. Japan’s dimension
e. U.S. dimension

ANS: PTS: 1 DIF: 1 REF: 63
NAT: AACSB Analytic | Environmental Influence TYP: F

11. Scientific and technological advancements in a specific industry as well as in society at large are included in which general environment dimension?
a. Sociocultural dimension
b. Legal-political dimension
c. Economic dimension
d. Technological dimension
e. Corporate culture dimension

ANS: PTS: 1 DIF: 1 REF: 63
NAT: AACSB Analytic | Environmental Influence TYP: F

12. Which dimension of the general environment represents the demographic characteristics, norms, customs, and values of the population within which the organization operates?
a. Legal-political dimension
b. Economic dimension
c. Technological dimension
d. Corporate culture dimension
e. Sociocultural dimension

ANS: PTS: 1 DIF: 1 REF: 65
NAT: AACSB Analytic | Environmental Influence TYP: F

13. When Miami Herald launches a Spanish-language newspaper, El Nuevo Herald, with articles emphasizing Hispanic, Cuban, and Latin American news and sports, it is responding to changes in ____ environment.
a. sociocultural
b. technological
c. economic
d. competitors
e. suppliers

ANS: PTS: 1 DIF: 2 REF: 65
NAT: AACSB Analytic | Environmental Influence TYP: A

14. ____ environment consists of demographic factors, such as population density.
a. Technological
b. Sociocultural
c. Legal-political
d. Internal
e. Economic

ANS: PTS: 1 DIF: 2 REF: 65
NAT: AACSB Analytic | Environmental Influence TYP: F

15. Anyone considering doing business in China, according to Manager’s Shoptalk in Chapter 3, should keep in mind all of the following rules except:
a. Business is always personal
b. Don’t skip the small talk
c. Remember that relationships are not short-term
d. Be efficient with use of time
e. Make contact frequently

ANS: PTS: 1 DIF: 1 REF: 64
NAT: AACSB Analytic | Environmental Influence TYP: F

16. Which of the following rules, according to Manager’s Shoptalk in Chapter 3, is about forging an emotional bond?
a. Don’t skip the small talk
b. Business is always personal
c. Remember that relationships are not short-term
d. Make contact frequently
e. Be efficient with use of time

ANS: PTS: 1 DIF: 2 REF: 64
NAT: AACSB Analytic | Leadership Principles TYP: F

17. Lying at the heart of Chinese culture, ____ is a supportive, mutually beneficial connection between two people.
a. kaizen
b. ganqing
c. renqing
d. kansei
e. guanxi

ANS: PTS: 1 DIF: 2 REF: 64
NAT: AACSB Analytic | Environmental Influence TYP: F

18. The general environment dimension that includes consumer purchasing power, the unemployment rate, and interest rates is called the
a. legal-political dimension.
b. sociocultural dimension.
c. technological dimension.
d. economic dimension.
e. task dimension.

ANS: PTS: 1 DIF: 2 REF: 65
NAT: AACSB Analytic | Environmental Influence TYP: F

19. A government inspection has required your company to upgrade the safety equipment in the manufacturing process of ice creamery. What dimension of the external environment has influenced these upgrades?
a. Technological
b. Legal-political
c. Task
d. Sociocultural
e. Economic

ANS: PTS: 1 DIF: 2 REF: 66
NAT: AACSB Analytic | Environmental Influence TYP: A

20. The ____ dimension of the general environment includes federal, state, and local government regulations.
a. technological
b. legal-political
c. economic
d. sociocultural
e. international

ANS: PTS: 1 DIF: 1 REF: 66
NAT: AACSB Analytic | Environmental Influence TYP: F

21. An interest group that works within the legal-political framework to influence companies to behave in socially responsible ways is called a(n)
a. pressure group.
b. legal group.
c. political influence group.
d. social group.
e. none of these.

ANS: PTS: 1 DIF: 1 REF: 66
NAT: AACSB Analytic | Environmental Influence TYP: F

22. Which of the following dimensions of the general environment includes all elements that occur naturally on earth?
a. Sociocultural dimension
b. Technological dimension
c. Economic dimension
d. Natural dimension
e. Environmental dimension

ANS: PTS: 1 DIF: 2 REF: 67
NAT: AACSB Analytic | Environmental Influence TYP: F

23. The people and organizations in the environment who acquire goods or services from the organization are
a. competitors.
b. suppliers.
c. customers.
d. employees.
e. potential employees.

ANS: PTS: 1 DIF: 1 REF: 68
NAT: AACSB Analytic | Environmental Influence TYP: F

24. Integrated Computers, Inc. wants to compile a profile of the customer it will target in its next promotional mailing. What environment would this be found in?
a. Internal environment
b. Task environment
c. Work environment
d. General environment
e. None of these

ANS: PTS: 1 DIF: 2 REF: 68
NAT: AACSB Analytic | Environmental Influence TYP: A

25. For Southwest Airlines, all of the following can be suppliers EXCEPT
a. Exxon (providing jet fuel).
b. Citibank (providing finances).
c. Delta Airlines (providing competition).
d. Boeing (providing planes).
e. All of these are suppliers for Southwest Airlines.

ANS: PTS: 1 DIF: 3 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: A

26. ____ is(are) included in an organization’s task environment.
a. Suppliers
b. Accounting procedures
c. Technology
d. Government
e. Demographic characteristics

ANS: PTS: 1 DIF: 2 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: F

27. The ____ represents people in the environment who can be hired to work for the organization.
a. competitors
b. labor market
c. suppliers
d. customers
e. government

ANS: PTS: 1 DIF: 1 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: F

28. Ally’s Applesauce is in the process of hiring sixty new workers. The personnel department has a large pool of unskilled labor to draw from due to the high unemployment rate in the local area. Which dimension of the external environment is involved here?
a. Sociocultural
b. Competitors
c. Technological
d. Labor market
e. Legal-political

ANS: PTS: 1 DIF: 2 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: F

29. The internal environment within which managers work includes all of the following except
a. corporate culture
b. production technology
c. organization structure
d. physical facilities
e. labor market

ANS: PTS: 1 DIF: 2 REF: 75
NAT: AACSB Analytic | Environmental Influence TYP: F

30. Which of the following roles are assumed by people and/or departments that link and coordinate the organization with key elements in the external environment?
a. Figurehead
b. Liaison
c. Boundary-spanning
d. Disturbance handler
e. Leader

ANS: PTS: 1 DIF: 2 REF: 72
NAT: AACSB Analytic | Environmental Influence TYP: F

31. Which of the following is NOT a part of adapting the organization to changes in the environment for coping with high environmental uncertainty?
a. Boundary-spanning roles
b. Advertising/public relations
c. Mergers/joint ventures
d. Interorganizational partnerships
e. All of these are a part of organizational response in adapting the organization to changes in the environment.

ANS: PTS: 1 DIF: 2 REF: 72
NAT: AACSB Analytic | Environmental Influence TYP: F

32. ____ is an approach to boundary spanning which results from using sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant.
a. Merger intelligence
b. Business intelligence
c. Competitive intelligence
d. Partnership intelligence
e. Environment intelligence

ANS: PTS: 1 DIF: 2 REF: 72
NAT: AACSB Analytic | Environmental Influence TYP: F

33. Kristen’s Jewelry Shop has just hired a comparative shopper to visit other local jewelry stores to gain product pricing information. What strategy is this describing?
a. Boundary-spanning roles
b. A flexible structure
c. Unfair practice
d. Increase planning and forecasting
e. Joint venture

ANS: PTS: 1 DIF: 2 REF: 73
NAT: AACSB Analytic | Environmental Influence TYP: A

34. Based on the notion that organizations are dealing with a very turbulent and uncertain external environment, more organizations are requiring ____ to perform boundary-spanning activities.
a. top leaders
b. middle managers
c. line managers
d. all employees
e. suppliers

ANS: PTS: 1 DIF: 2 REF: 73
NAT: AACSB Analytic | Environmental Influence TYP: F

35. Companies can reduce boundaries and increase collaboration with other organizations by creating
a. flexible structures.
b. interorganizational partnerships.
c. new company cultures.
d. new supplier connections.
e. none of these.

ANS: PTS: 1 DIF: 1 REF: 73
NAT: AACSB Analytic | Environmental Influence TYP: F

36. Many organizations are adapting to the environment by developing more of a(n) ____ relationship rather than a(n) ____ relationship with competitors.
a. adversarial, partnership
b. partnership, adversarial
c. strategic, competitive
d. competitive, strategic
e. none of these

ANS: PTS: 1 DIF: 2 REF: 73
NAT: AACSB Analytic | Environmental Influence TYP: F

37. When two or more organizations combine to become one, it is referred to as a
a. joint venture.
b. flexible structure.
c. mechanistic structure.
d. merger.
e. inorganic venture.

ANS: PTS: 1 DIF: 1 REF: 74
NAT: AACSB Analytic | Environmental Influence TYP: F

38. In a joint venture between large and small businesses, large businesses can provide all of the following EXCEPT
a. sales staff.
b. research staff.
c. financial resources.
d. distribution channels.
e. top level management.

ANS: PTS: 1 DIF: 2 REF: 74
NAT: AACSB Analytic | Environmental Influence TYP: F

39. Culture can be defined as
a. the set of key values, beliefs, understandings, and norms shared by members of an organization
b. the ability to speak different languages
c. an object, act, or event that conveys meaning to others
d. a narrative based on true events that is repeated frequently and shared by organizational employees
e. none of these

ANS: PTS: 1 DIF: 1 REF: 75
NAT: AACSB Analytic | Group Dynamics TYP: F

40. The level of corporate culture which cannot be seen but can be discerned from how people explain and justify what they do is
a. Invisible artifacts
b. Expressed values and beliefs
c. Slogans and ceremonies
d. Dress and office layout
e. None of these

ANS: PTS: 1 DIF: 1 REF: 75
NAT: AACSB Analytic | Group Dynamics TYP: F

41. The level of corporate culture in which values are so deeply embedded that members are no longer consciously aware of them is
a. Invisible artifacts
b. Expressed values and beliefs
c. Underlying assumptions and deep beliefs
d. Dress and office layout
e. Slogans and ceremonies

ANS: PTS: 1 DIF: 1 REF: 75
NAT: AACSB Analytic | Group Dynamics TYP: F

42. ____ are associated with surface level of organizational culture.
a. Values
b. Norms
c. Manners of dress
d. Beliefs
e. All of these

ANS: PTS: 1 DIF: 2 REF: 75
NAT: AACSB Analytic | Group Dynamics TYP: F

43. Which of the following would be considered a visual representation(s) of a company’s corporate culture?
a. All department heads have an executive office.
b. Each department has an award plaque for employee of the month.
c. All employees are dressed in professional business attire.
d. Top level executives drive company owned sports car.
e. All of these.

ANS: PTS: 1 DIF: 2 REF: 76
NAT: AACSB Analytic | Group Dynamics TYP: F

44. An object, act, or event that conveys meaning to others is referred to as a
a. symbol.
b. slogan.
c. story.
d. hero.
e. culture.

ANS: PTS: 1 DIF: 1 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

45. Symbols, stories, and heroes are important because they
a. entertain executive level management.
b. address the concerns of government.
c. acquaint customers to the organization.
d. communicate the significant values of an organization.
e. give employees something to talk about.

ANS: PTS: 1 DIF: 1 REF: 76
NAT: AACSB Analytic | Group Dynamics TYP: F

46. ____ is a narrative based on true event that is repeated frequently and shared by organizational employees.
a. Symbol
b. Slogan
c. Story
d. Hero
e. Culture

ANS: PTS: 1 DIF: 1 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

47. A figure who exemplifies the deeds, character, and attributes of a corporate culture is referred to as a
a. symbol.
b. stories.
c. slogan.
d. hero.
e. culture.

ANS: PTS: 1 DIF: 1 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

48. Heroes are important to an organization due to the fact that they
a. exemplify key values of the organization.
b. exemplify a strong corporate culture.
c. serve as examples to other employees.
d. all of these.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

49. A ____ represents a phrase or sentence that succinctly expresses a key corporate value.
a. symbol
b. stories
c. culture
d. hero
e. slogan

ANS: PTS: 1 DIF: 1 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

50. McDonald’s “We Love to See You Smile” represents a
a. ceremony.
b. symbol.
c. ritual.
d. slogan.
e. political activity.

ANS: PTS: 1 DIF: 2 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

51. “Chiquita. Perfect for Life.” was Chiquita’s
a. ceremony.
b. slogan.
c. symbol.
d. ritual.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: A

52. If a company emphasizes that “no purchase is complete until the customer is satisfied,” then it’s
a. utilizing a symbol.
b. communicating its values to customers.
c. using a slogan to present their values to customers and employees.
d. utilizing a hero for the purpose of conveying values.
e. using customers to harass the employees.

ANS: PTS: 1 DIF: 1 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

53. Culture tends to differ between ____, but appears similar within ____.
a. organizations, industries
b. people, organizations
c. groups, industries
d. organizations, groups
e. industries, geographical regions

ANS: PTS: 1 DIF: 2 REF: 78
NAT: AACSB Analytic | Group Dynamics TYP: F

54. All of the following are types of corporate cultures except
a. adaptability culture.
b. clan culture.
c. consistency culture.
d. involvement culture.
e. achievement culture.

ANS: PTS: 1 DIF: 2 REF: 79
NAT: AACSB Analytic | Group Dynamics TYP: F

55. The adaptability culture emerges in an environment that requires ____ response and ____ decision making.
a. fast; high-risk
b. fast; low-risk
c. slow; high-risk
d. slow; low-risk
e. regulated; low-risk

ANS: PTS: 1 DIF: 3 REF: 78
NAT: AACSB Analytic | Group Dynamics TYP: F

56. Which of the following cultures is suited to organizations that are concerned with servicing specific customers in the external environment but without the intense need for flexibility and rapid change?
a. Adaptability culture
b. Clan culture
c. Achievement culture
d. Consistency culture
e. None of these

ANS: PTS: 1 DIF: 2 REF: 79
NAT: AACSB Analytic | Group Dynamics TYP: F

57. The involvement culture has a(n) ____ focus on the involvement and participation of employees to rapidly meet changing needs from the environment.
a. external
b. internal
c. structural
d. competitive
e. technological

ANS: PTS: 1 DIF: 1 REF: 79
NAT: AACSB Analytic | Group Dynamics TYP: F

58. The consistency culture has a(n) ____ focus and an orientation for a ____ environment.
a. external; stable
b. external; dynamic
c. internal; stable
d. internal; dynamic
e. structural; dynamic

ANS: PTS: 1 DIF: 3 REF: 79
NAT: AACSB Analytic | Group Dynamics TYP: F

59. Which of the following cultures values and rewards a methodical, rational, orderly way of doing things?
a. Achievement culture
b. Involvement culture
c. Accomplishment culture
d. Consistency culture
e. Adaptability culture

ANS: PTS: 1 DIF: 2 REF: 80
NAT: AACSB Analytic | Environmental Influence TYP: F

60. ____ plays a key role in creating an organizational climate that enables learning and innovative responses to threats from the external environment, challenging new opportunities, or organizational crises.
a. Mission statement
b. Vision statement
c. Competitive intelligence
d. Employee training
e. Corporate culture

ANS: PTS: 1 DIF: 2 REF: 81-82
NAT: AACSB Analytic | Environmental Influence TYP: F

61. What is likely to happen to organizations that pay little attention to either cultural values or business results?
a. Unlikely to survive for long
b. No help for performance during hard times
c. Profitable in short run but difficult to sustain over long term
d. High performance
e. none of these

ANS: PTS: 1 DIF: 2 REF: 82
NAT: AACSB Analytic | Group Dynamics TYP: F

62. What is likely to happen to organizations that pay little attention to cultural values and instead stress business results?
a. Unlikely to survive for long
b. No help for performance during hard times
c. Profitable in short run but difficult to sustain over long term
d. High performance
e. none of these

ANS: PTS: 1 DIF: 2 REF: 82
NAT: AACSB Analytic | Group Dynamics TYP: F

63. A high-performance culture is based on all of the following except
a. solid organizational mission
b. shared adaptive values
c. individual employee ownership of bottom-line results
d. individual employee ownership of organization’s cultural backbone
e. singular focus on business results

ANS: PTS: 1 DIF: 1 REF: 83
NAT: AACSB Analytic | Group Dynamics TYP: F

64. In a study by Kotter and Haskett evidence is provided to support the claim that ____ is important for performance.
a. managing cultural values
b. leading partnerships within an industry
c. surveying the external environment
d. managing client relationships as boundary spanners
e. empowering employees

ANS: PTS: 1 DIF: 2 REF: 83
NAT: AACSB Analytic | Group Dynamics TYP: F

65. Blockbuster’s weakened performance in recent years stems from which of the following?
a. Weak internal culture
b. Inability to respond to the changing environment
c. Inability to become environmentally sustainable
d. Growth in competition from oversees
e. Weak supply chain management

ANS: PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: A

66. Executives at One World Advertising have learned that it is necessary to establish strong personal relationships and emotional bonds with Chinese business partners. This relates most closely to which dimension of the general business environment?
a. Natural
b. Sociocultural
c. Legal/Political
d. International
e. Internal

ANS: PTS: 1 DIF: 3 REF: 63
NAT: AACSB Analytic | Environmental Influence TYP: A

67. Stan is the owner of a small marketing firm. He designs ad campaigns that specifically target demographic groups within U.S. markets. Which demographic category currently has the largest market size?
a. Baby boomers
b. Generation X
c. Generation Y
d. Tweeners
e. In-betweeners

ANS: PTS: 1 DIF: 3 REF: 65
NAT: AACSB Analytic | Environmental Influence TYP: A

68. Animal-One is a campaign organization that drums up public awareness about the use of animals in cosmetic testing. The group condemns traditional cosmetic companies while promoting smaller, all-natural companies that do not test on animals. Animal-One can best be described as a(n):
a. Whistle-blower
b. Government organization
c. Pressure group
d. Sustainable organization
e. Small business

ANS: PTS: 1 DIF: 3 REF: 66
NAT: AACSB Analytic | Ethical Responsibilities TYP: A

69. In response to pressure from environmental advocates, organizations have become increasingly sensitive to diminishing:
a. Natural resources
b. Economic resources
c. Financial resources
d. Human resources
e. Technology resources

ANS: PTS: 1 DIF: 2 REF: 66
NAT: AACSB Analytic | Ethical Responsibilities TYP: F

70. SweetTooth Candies is a U.S.-based company that manufactures and distributes candy bars and snack foods globally. The company sources most of its cocoa and sugar from South American companies. This business relationship highlights which dimension of the task environment?
a. Customers
b. Competitors
c. Labor market
d. Culture
e. Suppliers

ANS: PTS: 1 DIF: 3 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: A

71. _________ means that managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes.
a. Adaptation
b. Risk
c. Uncertainty
d. Knowledge
e. Education

ANS: PTS: 1 DIF: 2 REF: 70
NAT: AACSB Analytic | Environmental Influence TYP: F

72. Roberta is a top-level executive at a banking institution. She spends a significant part of her day meeting with local government officials, every day consumers, and federal banking officials to address key issues in the banking industry. Roberta’s role can best be described as:
a. Boundary-spanning
b. Adaptive
c. Interorganizational
d. External
e. Internal

ANS: PTS: 1 DIF: 3 REF: 72
NAT: AACSB Analytic | Individual Dynamics TYP: A

73. Three large electronics companies have recently collaborated to develop an innovative new cell phone. This is an example of which managerial trend?
a. Outsourcing
b. Interorganizational partnership
c. Adversarial orientation
d. Merger
e. Boundary spanning

ANS: PTS: 1 DIF: 3 REF: 73
NAT: AACSB Analytic | Information Technologies TYP: A

74. In the current external business environment, which of the following is true?
a. Corporate culture defines success
b. The business environment is static
c. Companies are more adversarial than ever before
d. Mergers are declining
e. Joint ventures are on the rise

ANS: PTS: 1 DIF: 2 REF: 74
NAT: AACSB Analytic | Environmental Influence TYP: F

75. Jefferson and Squire is an advertising firm that is viewed as having a fast-paced and posh corporate culture. The company uses bold coloring with expensive accents in all office décor. This exemplifies which level of corporate culture?
a. Visible artifacts
b. Underlying assumptions
c. Expressed values
d. Heroes
e. Ceremonies

ANS: PTS: 1 DIF: 3 REF: 75
NAT: AACSB Analytic | Environmental Influence TYP: A

76. Roadtec Tire Company has a corporate culture that emphasizes an internal focus on the involvement and participation of employees, placing high value on meeting the needs of employees. The company is known for its caring, family-like atmosphere. Which type of corporate culture does Roadtec possess?
a. Adaptability culture
b. Achievement culture
c. Consistency culture
d. Involvement culture
e. Matrix culture

ANS: PTS: 1 DIF: 3 REF: 79
NAT: AACSB Analytic | Environmental Influence TYP: A

77. Research indicates that the one factor that increases a company’s value the most is:
a. Investment in research and development
b. People and how they are treated
c. Technology investment
d. A centralized organizational structure
e. Attention to values

ANS: PTS: 1 DIF: 2 REF: 81
NAT: AACSB Analytic | Environmental Influence TYP: F

78. Terry manages a food distribution company that is highly focused on creating a strong cohesive culture, but the company does not tie organizational values directly to goals and desired business results. Terry’s company most likely falls in which quadrant of organizational performance and culture?
a. Quadrant A
b. Quadrant B
c. Quadrant C
d. Quadrant D
e. Quadrant E

ANS: PTS: 1 DIF: 3 REF: 82
NAT: AACSB Analytic | Environmental Influence TYP: A

79. James, a casino manager, defines and uses signals and symbols to influence corporate culture by communicating central values to employees. As such, James can be described as what type of leader?
a. Egalitarian leader
b. Totalitarian leader
c. Cultural leader
d. Servant leader
e. Transitional leader

ANS: PTS: 1 DIF: 2 REF: 84
NAT: AACSB Analytic | Leadership Principles TYP: A

CASE

Scenario – Nikki Williams

Nikki Williams was working as the sales manager for Industrial Instruments. Some of the sales executives were showing signs of burnout. They were losing interest in their jobs and were no longer motivated to gain new accounts. The reward system focused on old reliable accounts, but Nikki was now under pressure to expand the customer base. Nikki had recently been to a seminar on corporate value systems. She recognized that the company’s CEO wanted to change the way employees thought about the firm and the way they related to one another. She further recognized that a lasting solution to her problem required a fundamental shift in perception.

1. To affect the value system, Nikki will be working primarily with
a. the legal-political dimension.
b. the sociocultural dimension.
c. the internal cultural dimension.
d. the economic dimension.
e. the external dimension.

ANS:

PTS: 1 DIF: 1 REF: 62
NAT: AACSB Analytic | Group Dynamics KEY: Scenario Questions
TYP: A

2. Nikki could use the following to affect the corporate culture:
a. structured symbolic logic.
b. stories about political heroes.
c. stories about company officers, stressing a value.
d. stories about economic depression.
e. all of these.

ANS:

PTS: 1 DIF: 2 REF: 76-77
NAT: AACSB Analytic | Group Dynamics KEY: Scenario Questions
TYP: F

3. Nikki could hold _______, which are planned activities at special events to provide examples of company values.
a. ceremonies
b. slogans
c. symbols
d. pictures of heroes
e. none of these

ANS:

PTS: 1 DIF: 1 REF: 78
NAT: AACSB Analytic | Group Dynamics KEY: Scenario Questions
TYP: A

4. Industrial Instruments operates in an environment that requires fast response and high-risk decision making. Which type of culture may be appropriate here?
a. Consistency
b. Adaptability
c. Clan
d. Achievement
e. Involvement

ANS:

PTS: 1 DIF: 1 REF: 78
NAT: AACSB Analytic | Group Dynamics KEY: Scenario Questions
TYP: A

Scenario – Melissa Hill

Melissa Hill, sales manager for One-Hit-Wonder Record Company, was trying to create a new strategy to turn around the declining record sales the company was facing. Melissa needed to find a way to find out what the customers really wanted, since One-Hit-Wonder didn’t have accurate information like the competitors did. It was imperative that she find the correct strategy and information because the company was in financial trouble. The company’s President wanted all employees to help find information and work as a team to develop better relationships that might help the company. He also stated that he wanted the company to remain an independent company. Melissa realized that through hard work and team efforts, the company could get back on its feet as soon as they got reliable information.

5. Melissa will be working primarily with
a. the legal-political dimension.
b. the labor market.
c. the internal cultural dimension.
d. pressure groups.
e. the sociocultural dimension

ANS:

PTS: 1 DIF: 1 REF: 65
NAT: AACSB Analytic | Environmental Influence KEY: Scenario Questions
TYP: A

6. The problem Melissa faced was
a. culture gap.
b. structural instability.
c. environmental uncertainty.
d. company transformation.
e. legal problems.

ANS:

PTS: 1 DIF: 1 REF: 70
NAT: AACSB Analytic | Environmental Influence KEY: Scenario Questions
TYP: A

7. Which of the following would be the best way for One-Hit-Wonder to decrease its uncertainty?
a. To create boundary-spanning roles
b. To eliminate interorganizational partnerships
c. To merge with another company
d. To create a joint venture
e. None of these

ANS:

PTS: 1 DIF: 1 REF: 72
NAT: AACSB Analytic | Environmental Influence KEY: Scenario Questions
TYP: A

8. Which of the following best describes One-Hit-Wonder’s culture?
a. Clan culture
b. Achievement culture
c. Consistency culture
d. Adaptability culture
e. None of these

ANS:

PTS: 1 DIF: 1 REF: 78
NAT: AACSB Analytic | Group Dynamics KEY: Scenario Questions
TYP: A

COMPLETION

1. The external ____________________ includes all elements existing outside the boundary of the organization that have the potential to affect the organization.

ANS:

PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

2. The ____________________ is the outer layer that is widely dispersed and affects organizations indirectly.

ANS:

PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

3. A(n) ____________________ includes the elements within the organization’s boundaries.

ANS:

PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

4. The ____________________ environment includes the sectors that conduct day-to-day transactions within the organization.

ANS:

PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

5. An example of ____________________ dimension is that Dixon Ticonderoga Co. is in trouble because of increased competition especially from low-cost pencil companies in China.

ANS:

PTS: 1 DIF: 2 REF: 63
NAT: AACSB Analytic | Environmental Influence TYP: A

6. The ____________________ environment represents an ever-changing and uneven playing field compared with domestic environment.

ANS:

PTS: 1 DIF: 2 REF: 63
NAT: AACSB Analytic | Environmental Influence TYP: F

7. The ____________________ dimension of the general environment includes scientific and technological advancements in a specific industry and in society.

ANS:

PTS: 1 DIF: 2 REF: 63
NAT: AACSB Analytic | Environmental Influence TYP: F

8. The ____________________ dimension of the general environment represents the demographic characteristics as well as the norms, customs, and values of the general population.

ANS:

PTS: 1 DIF: 2 REF: 65
NAT: AACSB Analytic | Environmental Influence TYP: F

9. Lying at the heart of Chinese culture, ____________________ is a supportive, mutually beneficial connection between two people.

ANS:

PTS: 1 DIF: 2 REF: 64
NAT: AACSB Analytic | Environmental Influence TYP: F

10. The general economic health of the country or region in which the organization operates is represented by the ____________________ dimension.

ANS:

PTS: 1 DIF: 2 REF: 65
NAT: AACSB Analytic | Environmental Influence TYP: F

11. The ____________________ dimension includes government regulations at the local, state, and federal levels.

ANS:

PTS: 1 DIF: 2 REF: 66
NAT: AACSB Analytic | Environmental Influence TYP: F

12. An interest group that works within the legal-political framework to influence companies to behave in socially responsible ways, is called a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 66
NAT: AACSB Analytic | Environmental Influence TYP: F

13. Included in a(n) ____________________ environment are sectors that have a direct working relationships with the organization, among customers, competitors, suppliers, and the labor market.

ANS:

PTS: 1 DIF: 2 REF: 68
NAT: AACSB Analytic | Environmental Influence TYP: F

14. The ____________________ of the general environment includes all elements that occur naturally on earth.

ANS:

PTS: 1 DIF: 2 REF: 67
NAT: AACSB Analytic | Environmental Influence TYP: F

15. Managers today are concerned because technologically speaking, the ____________________ has given more power to customers and enabled them to directly impact an organization.

ANS:

PTS: 1 DIF: 2 REF: 68
NAT: AACSB Analytic | Environmental Influence TYP: F

16. ____________________ are organizations in the same industry that provide goods or services to the same set of customers.

ANS:

PTS: 1 DIF: 2 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: F

17. People and organizations that provide raw materials the organization uses to produce its output are called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: F

18. The ____________________ represents people in the environment who can be hired to work for the organization.

ANS:

PTS: 1 DIF: 2 REF: 69
NAT: AACSB Analytic | Environmental Influence TYP: F

19. Not having sufficient information about environmental factors to understand and predict environmental needs and changes is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 70
NAT: AACSB Analytic | Environmental Influence TYP: F

20. When environmental factors change rapidly, the organization experiences ____________________ uncertainty.

ANS:

PTS: 1 DIF: 2 REF: 70
NAT: AACSB Analytic | Environmental Influence TYP: F

21. ____________________, ____________________, and ____________________ are three types of strategies that organizations can use to adapt to environmental changes.

ANS:

PTS: 1 DIF: 2 REF: 72
NAT: AACSB Analytic | Environmental Influence TYP: F

22. Roles assumed by people that link the organization with the external environment are called ____________________ roles.

ANS:

PTS: 1 DIF: 2 REF: 72
NAT: AACSB Analytic | Environmental Influence TYP: F

23. Interorganizational partnerships allow companies to join together to become ____________________ and share ____________________.

ANS:

PTS: 1 DIF: 2 REF: 73
NAT: AACSB Analytic | Environmental Influence TYP: F

24. A(n) ____________________ is when two or more organizations combine to make one organization.

ANS:

PTS: 1 DIF: 2 REF: 74
NAT: AACSB Analytic | Environmental Influence TYP: F

25. A(n) ____________________ involves a strategic alliance or program by two or more organizations.

ANS:

PTS: 1 DIF: 2 REF: 74
NAT: AACSB Analytic | Environmental Influence TYP: F

26. ____________________ are becoming more popular as organizations strive to keep up with technological advancements and compete in the global economy.

ANS:

PTS: 1 DIF: 2 REF: 74
NAT: AACSB Analytic | Environmental Influence TYP: F

27. ____________________ can be defined as the set of key values, beliefs, understandings, and norms shared by members of an organization.

ANS:

PTS: 1 DIF: 2 REF: 75
NAT: AACSB Analytic | Group Dynamics TYP: F

28. An object, act, or event that conveys meaning to others is known as a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

29. A(n) ____________________ is a narrative based on true events that is repeated frequently and shared among organizational employees.

ANS:

PTS: 1 DIF: 2 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

30. The deeds of ____________________ are extraordinary, but not so extraordinary that other employees cannot perform the same deeds.

ANS:

PTS: 1 DIF: 2 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

31. A slogan is a phrase or a sentence that concisely communicates a key corporate ____________________.

ANS:

PTS: 1 DIF: 2 REF: 77
NAT: AACSB Analytic | Group Dynamics TYP: F

32. Adaptability culture emerges in an environment that requires ____________________ response and ____________________ decision making.

ANS:

PTS: 1 DIF: 2 REF: 78
NAT: AACSB Analytic | Group Dynamics TYP: F

33. A culture that is a results-oriented that values competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 79
NAT: AACSB Analytic | Group Dynamics TYP: F

34. The ____________________ culture places high value on HR, and the organization may be characterized by a caring, family-like atmosphere.

ANS:

PTS: 1 DIF: 2 REF: 79
NAT: AACSB Analytic | Group Dynamics TYP: F

35. Organizations with internal focuses and consistency orientations for a stable environment should create a(n) ____________________ culture.

ANS:

PTS: 1 DIF: 2 REF: 79
NAT: AACSB Analytic | Group Dynamics TYP: F

36. ____________________ plays a key role in creating an organizational climate that enables learning and innovative responses to threats from the external environment, challenging new opportunities, or organizational crises.

ANS:

PTS: 1 DIF: 2 REF: 81-82
NAT: AACSB Analytic | Environmental Influence TYP: F

37. A primary way in which managers shape cultural norms and values to build a high-performance culture is through ____________________.

ANS:

PTS: 1 DIF: 2 REF: 84
NAT: AACSB Analytic | Group Dynamics TYP: F

38. A(n) ____________________ defines and uses signals and symbols to influence corporate culture.

ANS:

PTS: 1 DIF: 2 REF: 84
NAT: AACSB Analytic | Group Dynamics TYP: F

SHORT ANSWER

1. List the five dimensions of the general environment.

ANS:

PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

2. List three visible artifacts of an organization’s culture.

ANS:

PTS: 1 DIF: 2 REF: 75
NAT: AACSB Analytic | Group Dynamics TYP: F

3. List two reasons why ceremonies are held in an organization.

ANS:

PTS: 1 DIF: 2 REF: 77-78
NAT: AACSB Analytic | Group Dynamics TYP: F

4. Name one of the two dimensions that the categories of culture are based on.

ANS:
.

PTS: 1 DIF: 3 REF: 78
NAT: AACSB Analytic | Group Dynamics TYP: F

5. Name one of the two dimensions that organizations with high-performance cultures emphasize.

ANS:

PTS: 1 DIF: 2 REF: 82
NAT: AACSB Analytic | Group Dynamics TYP: F

ESSAY

1. Define the organizational task environment. List the four things this environment includes that could influence an organization.

ANS:

The environment includes: competitors, resources, technology, and economic conditions.

PTS: 1 DIF: 2 REF: 62
NAT: AACSB Analytic | Environmental Influence TYP: F

2. Name the five dimensions of the general environment and describe each dimension.

ANS:
designed to influence company behavior.

PTS: 1 DIF: 2 REF: 63-66
NAT: AACSB Analytic | Environmental Influence TYP: F

3. Briefly describe the task environment and its four primary sectors

ANS:

PTS: 1 DIF: 2 REF: 68
NAT: AACSB Analytic | Environmental Influence TYP: F

4. What are the three basic strategies for dealing with increased uncertainty with respect to customers, competitors, suppliers, or government regulations?

ANS:

PTS: 1 DIF: 2 REF: 72
NAT: AACSB Analytic | Environmental Influence TYP: F

5. Based on the model in the text, discuss the relationship between external environmental characteristics and uncertainty.

ANS:

PTS: 1 DIF: 3 REF: 72
NAT: AACSB Analytic | Environmental Influence TYP: F

6. Discuss the different levels of culture.

ANS:

PTS: 1 DIF: 3 REF: 76
NAT: AACSB Analytic | Group Dynamics TYP: F

7. List the four categories of culture and describe what kind of environments each fit best in.

ANS:

PTS: 1 DIF: 2 REF: 78-79
NAT: AACSB Analytic | Group Dynamics TYP: F

8. Briefly discuss the two key areas that cultural leaders influence culture.

ANS:

PTS: 1 DIF: 2 REF: 84
NAT: AACSB Analytic | Group Dynamics TYP: F
Chapter 4—Managing in a Global Environment

TRUE/FALSE

1. In today’s world, every manager needs to think locally.

ANS: PTS: 1 DIF: 2 REF: 90
NAT: AACSB Analytic | Environmental Influence TYP: F

2. Business has become a unified, global field as trade barriers fall, communication becomes faster and cheaper, and consumer tastes converge.

ANS: PTS: 1 DIF: 2 REF: 90
NAT: AACSB Analytic | Environmental Influence TYP: F

3. ABC Manufacturing is in the domestic stage. It has its market potential open to the countries that border its home country.

ANS: PTS: 1 DIF: 2 REF: 91
NAT: AACSB Analytic | Environmental Influence TYP: A

4. To deal with the marketing of products in several countries individually, a company in the international stage often uses an international division.

ANS: PTS: 1 DIF: 1 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: F

5. The second stage in the process of globalization is the international stage, where the company usually adopts a multidomestic approach.

ANS: PTS: 1 DIF: 2 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: F

6. The multinational stage of corporate international development transcends any single home country. The ownership, control, and top management tend to be dispersed among several nationalities.

ANS: PTS: 1 DIF: 1 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: F

7. An example of global outsourcing is seen when Gap, Inc uses low-cost Caribbean labor to cheaply produce its clothing, and then finishes off and sells its clothing in the United States.

ANS: PTS: 1 DIF: 2 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: A

8. With exporting, the corporation transfers its products for sale and its production facilities in foreign countries.

ANS: PTS: 1 DIF: 2 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: F

9. Seeking cheaper sources of materials or labor offshore is called offshoring.

ANS: PTS: 1 DIF: 2 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: F

10. Countertrade is the barter of products for products rather than the sale of products for currency.

ANS: PTS: 1 DIF: 1 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: F

11. An estimated 55 percent of world trade is countertrade.

ANS: PTS: 1 DIF: 2 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: F

12. When Harbor Trades, a Korean-based company, makes resources including technology, managerial skills, and patent and trademark rights available to Nano Technologies, a Russian company whereby allowing Nano to make products similar to CBA, it is engaging in a countertrade agreement.

ANS: PTS: 1 DIF: 2 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: A

13. A form of direct investment is franchising.

ANS: PTS: 1 DIF: 1 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: F

14. Joint venture is the most risky type of direct investment.

ANS: PTS: 1 DIF: 2 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: F

15. When a company builds a subsidiary from scratch in a foreign country it is called a greenfield venture.

ANS: PTS: 1 DIF: 1 REF: 95
NAT: AACSB Analytic | Environmental Influence TYP: F

16. The least costly and least risky direct investment is called a greenfield venture.

ANS: PTS: 1 DIF: 2 REF: 95
NAT: AACSB Analytic | Strategy TYP: F

17. Direct investing means that the company is involved in managing the productive assets, which distinguishes it from other entry strategies that permit less managerial control.

ANS: PTS: 1 DIF: 2 REF: 94
NAT: AACSB Analytic | Strategy TYP: F

18. Outsourcing is perhaps the most widespread approach to international involvement in China and India.

ANS: PTS: 1 DIF: 2 REF: 96
NAT: AACSB Analytic | Environmental Influence TYP: F

19. Infrastructure management is the management of business operations conducted in more than one country.

ANS: PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

20. The basic management functions of planning, organizing, leading, and controlling are the same whether a company operates domestically or internationally.

ANS: PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

21. The sub-divisions of the international environment are the economic, the sociocultural, and the legal-political environments.

ANS: PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

22. Some economic environments of business include resource and product markets, language, religion, and per capita income.

ANS: PTS: 1 DIF: 1 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F

23. A country’s physical facilities that support economic activities make up its infrastructure.

ANS: PTS: 1 DIF: 2 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: F

24. The criterion traditionally used to classify countries as developed or developing is per capita income.

ANS: PTS: 1 DIF: 2 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F

25. LDC’s are less developed countries and tend to be found in the Southern Hemisphere including Africa, Asia and South America.

ANS: PTS: 1 DIF: 2 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F

26. Because of cheap labor, most international business firms are headquartered in the less developed countries of Asia and South America.

ANS: PTS: 1 DIF: 2 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F

27. Market risk is defined as the risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments.

ANS: PTS: 1 DIF: 2 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F

28. The countries experiencing political stability face the greatest threat of violence.

ANS: PTS: 1 DIF: 1 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F

29. A company’s political risk includes riots, revolutions, civil disorders, and frequent changes in government.

ANS: PTS: 1 DIF: 3 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F

30. Unfortunately, many U.S. managers fail to realize that the values and behaviors that typically govern how business is done in the United States do not translate to the rest of the world.

ANS: PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F

31. Countries that value high power distances normally have cities that are geographically separated and so have the need to transport electrical energy over large distances.

ANS: PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F

32. The social value of uncertainty avoidance is evident in countries like Japan which support beliefs that provide stability and conformity among its citizenry.

ANS: PTS: 1 DIF: 1 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F

33. In countries with strong masculine social values including Austria and Japan, both men and women subscribe to the dominant masculine value.

ANS: PTS: 1 DIF: 1 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

34. Collectivism means a preference for a tightly knit social framework in which individuals look after one another and organizations protect their members’ interests.

ANS: PTS: 1 DIF: 1 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F

35. The fifth dimension of Hofstede’s social values is preliminary-term orientation and extended-term orientation.

ANS: PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

36. According to the GLOBE Project, a society with a high performance orientation places high emphasis on performance and rewards people for performance improvements and excellence.

ANS: PTS: 1 DIF: 1 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

37. According to the GLOBE Project, gender differentiation refers to the extent to which a society maximizes gender role differences.

ANS: PTS: 1 DIF: 1 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

38. According to Manager’s Shoptalk in Chapter 4, the polite way to give your business card to a Japanese business person is when first meeting, presenting your card with both hands.

ANS: PTS: 1 DIF: 1 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F

39. According to Manager’s Shoptalk in Chapter 4, being on-time for appointments is very important in Brazil.

ANS: PTS: 1 DIF: 2 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F

40. Social values greatly influence organizational functioning and management styles.

ANS: PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

41. According to the GLOBE Value Dimensions, Japan and Russia both have very high performance orientation.

ANS: PTS: 1 DIF: 2 REF: 107
NAT: AACSB Analytic | Environmental Influence TYP: F

42. A low-context culture is a culture in which communication is used to enhance personal relationships.

ANS: PTS: 1 DIF: 2 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F

43. Linguistic pluralism occurs in countries like India where more than one language exist.

ANS: PTS: 1 DIF: 2 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F

44. A high-context interaction requires more time because a relationship has to be developed, and trust and friendship must be established.

ANS: PTS: 1 DIF: 2 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F

45. German, Swiss, and North American cultures are among the high-context cultures.

ANS: PTS: 1 DIF: 2 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F

46. When an organization has an instrumental attitude toward people it treats employees as a resource to be used.

ANS: PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

47. When an organization has a humanistic attitude, it values employees as an end in themselves.

ANS: PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

48. Ethnocentrism refers to a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values.

ANS: PTS: 1 DIF: 1 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

49. Ethnocentrism refers to a natural tendency of people to regard their own culture as inferior to other cultures.

ANS: PTS: 1 DIF: 1 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

50. A tendency to regard their own culture as superior and to downgrade other cultures reflects an attitude called geocentric.

ANS: PTS: 1 DIF: 1 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

51. The goal of the European Union is to create a powerful single market system for Europe’s millions of consumers.

ANS: PTS: 1 DIF: 3 REF: 112
NAT: AACSB Analytic | Environmental Influence TYP: F

52. An organization developed for the purpose of eliminating tariffs in trading between Japan and the United States is called The North American Freedom of Tariffs Administration (NAFTA).

ANS: PTS: 1 DIF: 2 REF: 112
NAT: AACSB Analytic | Environmental Influence TYP: F

53. Fifteen member states of the EU have adopted the rupee, as a single European currency.

ANS: PTS: 1 DIF: 2 REF: 112
NAT: AACSB Analytic | Environmental Influence TYP: F

54. Large international firms typically are called multinational corporations.

ANS: PTS: 1 DIF: 1 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F

55. A multinational corporation typically receives more than 25 percent of its total sales revenues from operations inside the parent’s home country.

ANS: PTS: 1 DIF: 2 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F

56. An MNC is managed as an integrated worldwide business system.

ANS: PTS: 1 DIF: 1 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F

57. The primary emphasis of polycentric companies is on their home countries.

ANS: PTS: 1 DIF: 2 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F

58. Geocentric companies are truly world-oriented and favor no specific country.

ANS: PTS: 1 DIF: 2 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F

59. Culture shock refers to a person’s ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.

ANS: PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

60. Cultural intelligence refers to a person’s ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.

ANS: PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

61. Culture shock refers to the frustration and anxiety that result from constantly being subjected to strange and unfamiliar cues about what to do and how to do it.

ANS: PTS: 1 DIF: 1 REF: 110
NAT: AACSB Analytic | Environmental Influence TYP: F

62. There are three components to cultural intelligence: cognitive, emotional, and physical.

ANS: PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

63. A manager’s reality is that isolation from international forces is entirely possible.

ANS: PTS: 1 DIF: 2 REF: 90
NAT: AACSB Analytic | Environmental Influence TYP: F

64. Globalization reached its peak in the 1970s, and is decreasing at a gradual rate.

ANS: PTS: 1 DIF: 2 REF: 90
NAT: AACSB Analytic | Environmental Influence TYP: F

65. The global stage of corporate international development is also referred to as the stateless stage.

ANS: PTS: 1 DIF: 2 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: F

66. Licensing means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies.

ANS: PTS: 1 DIF: 2 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: F

67. One advantage to acquiring a wholly owned foreign affiliate is that the company that acquires it would then have complete control.

ANS: PTS: 1 DIF: 2 REF: 95
NAT: AACSB Analytic | Environmental Influence TYP: F

68. The United States has the largest mobile phone market in the world.

ANS: PTS: 1 DIF: 2 REF: 96
NAT: AACSB Analytic | Information Technologies TYP: F

69. Whereas China is strong in software services, India is a rising power in manufacturing.

ANS: PTS: 1 DIF: 2 REF: 96
NAT: AACSB Analytic | Information Technologies TYP: F

70. Brazil is known to have a young, vibrant population and a rapidly growing middle class that is eager to experience the finer things in life.

ANS: PTS: 1 DIF: 2 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: F

71. The estimated 2010 misery index figures suggest significantly less misery for almost every country as compared to figures at the beginning of the century.

ANS: PTS: 1 DIF: 2 REF: 101
NAT: AACSB Analytic | Environmental Influence TYP: F

72. In India, it is not uncommon for social media companies such as Facebook and Twitter to be required by law to comply with requests to take down content considered incendiary by government entities.

ANS: PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F

73. A high performance orientation means that a society encourages toughness, assertiveness, and competitiveness.

ANS: PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

74. High-context cultures include Asian and Arab countries, whereas low-context cultures tend to be American and Northern European.

ANS: PTS: 1 DIF: 2 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F

75. High cultural intelligence requires that a manager be open and receptive to new ideas and approaches.

ANS: PTS: 1 DIF: 2 REF: 111
NAT: AACSB Analytic | Environmental Influence TYP: F

76. In a recent Fortune magazine poll, 68 percent of Americans say other countries benefit the most from free trade.

ANS: PTS: 1 DIF: 2 REF: 114
NAT: AACSB Analytic | Creation of Value TYP: F

77. The term top of the pyramid refers to the more than four billion people who earn the least, as defined by per capita income.

ANS: PTS: 1 DIF: 2 REF: 115
NAT: AACSB Analytic | Creation of Value TYP: F

MULTIPLE CHOICE

1. Today’s companies compete in a ____.
a. growingly domestic
b. low-context culture
c. high-context culture
d. Greenfield economy
e. borderless world

ANS: PTS: 1 DIF: 2 REF: 90
NAT: AACSB Analytic | Environmental Influence TYP: F

2. Companies that think ____ have a competitive edge.
a. globally
b. regionally
c. nationally
d. strategically
e. “customers first”

ANS: PTS: 1 DIF: 2 REF: 90
NAT: AACSB Analytic | Environmental Influence TYP: F

3. In which stage, market potential is limited to home country, with all production and marketing facilities located at home?
a. Domestic
b. International
c. Global
d. Multinational
e. Stateless

ANS: PTS: 1 DIF: 1 REF: 91
NAT: AACSB Analytic | Environmental Influence TYP: F

4. In the ____ stage a company usually adopts a multidomestic approach.
a. Global
b. Multinational
c. Stateless
d. International
e. Domestic

ANS: PTS: 1 DIF: 2 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: F

5. Global Dandelion, with marketing and production facilities located in many countries, is participating at what stage in the international arena?
a. International stage
b. Global stage
c. Domestic stage
d. Multinational stage
e. Interdomestic stage

ANS: PTS: 1 DIF: 2 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: A

6. Quality-cast Telecom with an international division would be participating in what stage of the international arena?
a. Domestic stage
b. International stage
c. Multinational stage
d. Global stage
e. Binational stage

ANS: PTS: 1 DIF: 2 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: A

7. The process of globalization typically passes through all of the following stages EXCEPT
a. domestic stage.
b. global stage.
c. international stage.
d. interdomestic stage.
e. multinational stage.

ANS: PTS: 1 DIF: 1 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: F

8. Stateless stage is also referred to as the ____ stage.
a. multinational
b. global
c. multidomestic
d. international
e. domestic

ANS: PTS: 1 DIF: 1 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: F

9. Color Copiers operates in a true global fashion, making sales and acquiring resources in whatever country offers the best opportunities and lowest cost, what stage of international development is it in?
a. Stateless stage
b. Multinational stage
c. International stage
d. Domestic stage
e. Multidomestic stage

ANS: PTS: 1 DIF: 3 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: A

10. Which of the following refers to engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country?
a. Franchising
b. Licensing
c. Market entry strategy
d. Outsourcing
e. Activity

ANS: PTS: 1 DIF: 1 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: F

11. The Maquiladora industry along the Texas-Mexico border on the Mexico side uses cheap labor for assembling products. This lowers the price for U.S. consumers and is an example of
a. licensing.
b. joint venture.
c. outsourcing.
d. franchising.
e. none of these.

ANS: PTS: 1 DIF: 3 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: A

12. Most firms begin with which strategy to enter foreign markets?
a. Exporting
b. Greenfield venture
c. Joint venture
d. Acquisition
e. Direct investment

ANS: PTS: 1 DIF: 1 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: F

13. Which of the following is an entry strategy in which the organization maintains its production facilities within its home country and transfers its products for sale in foreign markets?
a. Franchising
b. Licensing
c. Exporting
d. Greenfield venture
e. Joint venture

ANS: PTS: 1 DIF: 1 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: F

14. What is exporting?
a. Countertrade
b. The barter of products for products, often used in developing nations
c. Items produced in the home country for sale in foreign markets
d. All of these
e. None of these

ANS: PTS: 1 DIF: 2 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: F

15. A form of exporting to less-developed countries is called
a. licensing.
b. franchising.
c. greenfield venture.
d. joint venture.
e. countertrade.

ANS: PTS: 1 DIF: 1 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: F

16. Heineken begins by exporting its product into new markets, and then ____ to a local brewer to establish its position in the market.
a. countertrades
b. licenses
c. exports
d. franchises
e. markets

ANS: PTS: 1 DIF: 1 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: A

17. Which of the following is a form of franchising?
a. Direct investing
b. Licensing
c. Exporting
d. Countertrade
e. Barter trade

ANS: PTS: 1 DIF: 1 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: F

18. Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system. What type of strategy are you going to use?
a. Wholly owned foreign affiliate
b. A greenfield venture agreement
c. A franchise
d. An export agreement
e. Barter trade

ANS: PTS: 1 DIF: 2 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: A

19. Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk obtained in operating international businesses?
a. Direct investment/franchising
b. Wholly owned foreign affiliate/countertrade
c. Exporting/licensing
d. Franchising/licensing
e. All of these

ANS: PTS: 1 DIF: 3 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: F

20. A foreign subsidiary over which an organization has complete control is called a
a. joint venture.
b. licensing agreement.
c. franchise.
d. wholly owned foreign affiliate.
e. foreign venture.

ANS: PTS: 1 DIF: 2 REF: 95
NAT: AACSB Analytic | Environmental Influence TYP: F

21. The Write Pens, Inc. wants to reduce transferring costs by producing closer to the consumer in a foreign country. This will also help in reducing transportation and storage costs. Which strategy would be the best to use given the circumstances?
a. Franchising
b. Exporting
c. Direct investing
d. Barter agreement
e. Licensing

ANS: PTS: 1 DIF: 2 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: A

22. Go RVing, a U.S. company, built a subsidiary from scratch in England. This is an example of
a. franchising.
b. greenfield venture.
c. joint venture.
d. exporting.
e. licensing.

ANS: PTS: 1 DIF: 2 REF: 95
NAT: AACSB Analytic | Environmental Influence TYP: A

23. The Nissan plant in Mississippi is an example of a ____.
a. greenfield venture
b. joint venture
c. direct investment
d. foreign affiliate
e. direct acquisition

ANS: PTS: 1 DIF: 2 REF: 95
NAT: AACSB Analytic | Environmental Influence TYP: F

24. As a first step into international business, which two countries are most companies going to today?
a. Russia and Japan
b. Sweden and Germany
c. China and India
d. Brazil and Philippines
e. Indonesia and Brazil

ANS: PTS: 1 DIF: 2 REF: 96
NAT: AACSB Analytic | Environmental Influence TYP: F

25. ____ is the most widespread approach to international involvement in China and India.
a. Importing
b. Exporting
c. Manufacturing
d. Outsourcing
e. Greenfield venture

ANS: PTS: 1 DIF: 1 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: F

26. The management of business operations conducted in more than one country is called
a. global management.
b. international management.
c. outsourcing management.
d. planning management.
e. domestic management.

ANS: PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

27. ____ aspects of management do not change when doing business internationally.
a. Planning
b. Organizing
c. Controlling
d. Leading
e. All of these

ANS: PTS: 1 DIF: 1 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

28. Language, values, religion, and education all describe which dimension in the international environment?
a. Economic
b. Legal
c. Political
d. Sociocultural
e. Technological

ANS: PTS: 1 DIF: 1 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

29. In international operations, the economic environment represents all of the following factors EXCEPT
a. infrastructure.
b. resource and product markets.
c. laws and regulations.
d. inflation.
e. exchange rates.

ANS: PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

30. Resource development, infrastructure, and exchange rates all describe which dimension in the international environment?
a. Economic
b. Legal
c. Political
d. Sociocultural
e. Technological

ANS: PTS: 1 DIF: 1 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

31. In international operations, the economic environment includes
a. shared knowledge, beliefs and values.
b. political risks.
c. social organizations.
d. infrastructure.
e. tariffs, quotas, and taxes.

ANS: PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

32. Which of the following is a sociocultural factor in the international environment?
a. Language
b. Exchange rates
c. Tariffs, taxes, and quotas
d. Per capita income
e. Infrastructure

ANS: PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

33. ____ is normally used to classify countries as developed or developing.
a. Exchange rates
b. Interest rates
c. Gross national product
d. Per capita income
e. Inflation rates

ANS: PTS: 1 DIF: 2 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F

34. ____ generally are located in Asia, Africa and South America.
a. MNCs
b. EUs
c. LDCs
d. WTOs
e. MFNs

ANS: PTS: 1 DIF: 2 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F

35. A country’s physical facilities that support economic activities make up its ____.
a. resource markets
b. infrastructure
c. physical markets
d. product markets
e. plants and equipment

ANS: PTS: 1 DIF: 1 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: F

36. If you built a computer company in Africa and then found that your product was having difficulty being distributed to customers because of the road system, your problem would be related to
a. an inadequate infrastructure.
b. an economy incapable of supporting growth.
c. a poor resource market.
d. a poor product market.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: F

37. Your grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a problem with India’s
a. product market.
b. resource market.
c. infrastructure.
d. economy.
e. power distance.

ANS: PTS: 1 DIF: 2 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: F

38. Exchange rates are included in which of the following international environments?
a. The legal-political sector
b. The economic environment
c. The sociocultural environment
d. The barter system environment
e. The government sector

ANS: PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

39. The legal-political environment, in international operations, includes which of the following?
a. Shared knowledge, beliefs and values
b. Political risks
c. Social organizations
d. Infrastructure
e. None of these

ANS: PTS: 1 DIF: 2 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F

40. Political risk is defined as an organization’s risk of ____ due to politically based events or actions by host governments.
a. loss of assets
b. managerial control
c. earning power
d. all of these
e. managerial control and earning power only

ANS: PTS: 1 DIF: 2 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F

41. A company’s risk of loss of assets, earning power, or managerial control due to politically based events or action by host government is referred to as
a. MFN.
b. political risk.
c. tariffs.
d. political instability.
e. terrorism.

ANS: PTS: 1 DIF: 1 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F

42. Rooftop International, Inc. buys insurance against host government takeover when investing in foreign countries. This is an example of which sector of the international environment?
a. Legal-political
b. Sociocultural
c. Technological
d. Economic
e. Infrastructure

ANS: PTS: 1 DIF: 2 REF: 102-103
NAT: AACSB Analytic | Environmental Influence TYP: A

43. Which of the following is NOT a legal-political factor in the international environment?
a. Laws and regulations
b. Language
c. Tariffs, quotas, taxes
d. Political risk
e. Government takeovers

ANS: PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

44. A foreign terrorist kidnaps your firm’s marketing VP while the VP is in the host country. This is a harsh example of
a. economic development.
b. infrastructure.
c. political risk.
d. international law.
e. social risk.

ANS: PTS: 1 DIF: 2 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: A

45. A nation’s ____ includes the shared knowledge, beliefs and values, as well as the common modes of behavior and ways of thinking, among members of a society.
a. power distance
b. culture
c. masculinity
d. individualism
e. uncertainty avoidance

ANS: PTS: 1 DIF: 1 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F

46. Cultural factors in foreign countries are ____ the political and economic factors.
a. easier than
b. similar to
c. more perplexing than
d. less important than
e. none of these

ANS: PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F

47. ____ refers to the degree to which people accept inequality in power among institutions, organizations, and people.
a. Power distance
b. Uncertainty avoidance
c. Individualism
d. Collectivism
e. Masculinity

ANS: PTS: 1 DIF: 1 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F

48. Countries whose social values reflect low power distance
a. are highly democratic.
b. accept inequality in power among institutions, organizations and people.
c. expect equality in power.
d. avoid uncertainty.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F

49. A loosely knit social framework in which individuals are expected to take care of themselves is called
a. culture.
b. individualism.
c. ethnocentrism.
d. masculinity.
e. power distance.

ANS: PTS: 1 DIF: 2 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F

50. Collectivist values are represented in the social framework of which of these?
a. The United States
b. Australia
c. Ecuador
d. Great Britain
e. All of these

ANS: PTS: 1 DIF: 2 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F

51. Austria’s cultural preference is for achievement, heroism, assertiveness, and material success. This would be considered
a. power distance.
b. individualism.
c. masculinity.
d. ethnocentrism.
e. collectivism.

ANS: PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: A

52. ____ refers to a value characterized by people’s intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity.
a. Power distance
b. Uncertainty avoidance
c. Certainty avoidance
d. Conformity seekers
e. None of these

ANS: PTS: 1 DIF: 1 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F

53. Which of these reflects a cultural preference for cooperation, group decision making, and quality of life?
a. Individualism
b. Collectivism
c. Masculinity
d. Femininity
e. Power distance

ANS: PTS: 1 DIF: 1 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

54. One of Hofstede’s social values that was developed later is
a. power distance.
b. uncertainty avoidance.
c. masculinity.
d. collectivism.
e. long-term orientation.

ANS: PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

55. Recent research by the GLOBE project has extended ____ research and offered new insights for managers.
a. Hofstede’s
b. Walton’s
c. Weber’s
d. Fayol’s
e. Gilbreth’s

ANS: PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

56. All of the following are cultural dimensions as defined by the GLOBE Project, except:
a. assertiveness
b. gender differentiation
c. social collectivism
d. humane orientation
e. masculinity

ANS: PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

57. In countries where women are often in positions of high status, the Globe Project would describe that culture as high in ____.
a. assertiveness
b. uncertainty avoidance
c. gender differentiation
d. societal collectivism
e. performance orientation

ANS: PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

58. A country that places emphasis on fairness and values kindness would be described by the Globe Project as high in ____.
a. assertiveness
b. uncertainty avoidance
c. gender differentiation
d. humane orientation
e. societal collectivism

ANS: PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

59. According to Manager’s Shoptalk in Chapter 4, what does the gesture of scratching one’s head usually mean in Russia?
a. “You’re crazy.”
b. “I am listening carefully.”
c. “I want to get to know you better.”
d. “I’m confused or skeptical.”
e. “No.”

ANS: PTS: 1 DIF: 2 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F

60. According to Manager’s Shoptalk in Chapter 4, one of the most universal gestures is:
a. Arm up, shaking back and forth (waving)
b. Scratching your chin (thinking)
c. A smile (happiness or politeness)
d. Closing your eyes (boredom)
e. A pat on the back (congratulations)

ANS: PTS: 1 DIF: 2 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F

61. Which of the following is defined as a culture in which communication is used to enhance personal relationships?
a. Interpersonal culture
b. High-context culture
c. Power culture
d. Low-context culture
e. Family-oriented culture

ANS: PTS: 1 DIF: 2 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F

62. Which of the following countries possesses a high degree of assertiveness?
a. Spain
b. Sweden
c. Japan
d. Iceland
e. Switzerland

ANS: PTS: 1 DIF: 2 REF: 107
NAT: AACSB Analytic | Environmental Influence TYP: F

63. Which of the following countries possesses a low degree of gender differentiation?
a. China
b. Brazil
c. Italy
d. South Korea
e. Denmark

ANS: PTS: 1 DIF: 2 REF: 107
NAT: AACSB Analytic | Environmental Influence TYP: F

64. Which of the following countries possesses a high performance orientation?
a. Israel
b. Sweden
c. Taiwan
d. Russia
e. Venezuela

ANS: PTS: 1 DIF: 2 REF: 107
NAT: AACSB Analytic | Environmental Influence TYP: F

65. Countries that use several languages
a. are ethnocentric.
b. are geocentric.
c. are likely to have high uncertainty avoidance.
d. have linguistic pluralism.
e. are polycentric.

ANS: PTS: 1 DIF: 1 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F

66. In a(n) ____, people use communication primarily to exchange facts and information.
a. power culture
b. informational culture
c. high-context culture
d. mid-context culture
e. low-context culture

ANS: PTS: 1 DIF: 2 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F

67. A ____ interaction requires more time because a relationship has to be developed, and trust and friendship must be established.
a. high-context
b. sales
c. business
d. low-context
e. personal

ANS: PTS: 1 DIF: 2 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F

68. A cultural attitude marked by the tendency to regard one’s own culture as superior to others is called
a. ethnocentrism.
b. polycentrism.
c. geocentrism
d. technocentrism.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

69. When organization managers have a(n) ____ attitude, they value employees as an end in themselves.
a. ethnocentric
b. humanistic
c. instrumental
d. pluralistic
e. performance

ANS: PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

70. When organization managers have a(n) ____ attitude, they treat employees as resources to be used.
a. ethnocentric
b. humanistic
c. instrumental
d. pluralistic
e. performance

ANS: PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

71. How many nations signed on for negotiation when GATT was created in 1947?
a. 15
b. 23
c. 28
d. 40
e. 57

ANS: PTS: 1 DIF: 3 REF: 111
NAT: AACSB Analytic | Environmental Influence TYP: F

72. The European Union has expanded to a ____-nation alliance
a. 14
b. 12
c. 27
d. 16
e. 21

ANS: PTS: 1 DIF: 1 REF: 112
NAT: AACSB Analytic | Environmental Influence TYP: F

73. Which of the following has a goal to guide the nations of the world toward free trade and open markets?
a. GATT
b. WTO
c. GLOBE
d. EU
e. NAFTA

ANS: PTS: 1 DIF: 2 REF: 111
NAT: AACSB Analytic | Environmental Influence TYP: F

74. The ____ is a single European currency that replaced 12 national currencies and unify a huge marketplace.
a. Mark
b. Franc
c. MFN
d. Euro
e. Pound

ANS: PTS: 1 DIF: 1 REF: 112
NAT: AACSB Analytic | Environmental Influence TYP: F

75. Which organization originated and supports the idea of small businesses operating on a global level?
a. GLOBE
b. EU
c. NAFTA
d. ASEAN
e. GATT

ANS: PTS: 1 DIF: 2 REF: 113
NAT: AACSB Analytic | Environmental Influence TYP: F

76. Carrie’s Car Care receives more than 25% of its total sales revenues from operations outside of the United States. Carrie’s would be considered a
a. foreign national.
b. wealth company.
c. multinational corporation.
d. globalization corporation.
e. None of these.

ANS: PTS: 1 DIF: 2 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: A

77. Which of the following characteristics distinguish a multinational corporation?
a. Top management is expected to take a global perspective.
b. The corporation is controlled by a single management authority.
c. It is managed as an integrated worldwide business system.
d. All of these
e. Top management is expected to take a global perspective and The corporation is controlled by a single management authority only.

ANS: PTS: 1 DIF: 1 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F

78. Which of the following companies place an emphasis on their home countries?
a. Polycentric
b. Geocentric
c. Ethnocentric
d. Global
e. Regiocentric

ANS: PTS: 1 DIF: 2 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F

79. ____ places an emphasis on a worldwide perspective.
a. Polycentric companies
b. Geocentric companies
c. Ethnocentric companies
d. Regiocentric companies
e. Domestic companies

ANS: PTS: 1 DIF: 2 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F

80. All of the following are components of cultural intelligence, EXCEPT:
a. Physical
b. Cognitive
c. Emotional
d. Analytical
e. All of these

ANS: PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

81. Which of the following refers to the frustration and anxiety that result from constantly being subjected to strange and unfamiliar cues about what to do and how to do it?
a. Societal chaos
b. Civilization distress
c. Culture confusion
d. Societal disorder
e. Culture shock

ANS: PTS: 1 DIF: 2 REF: 110
NAT: AACSB Analytic | Environmental Influence TYP: F

82. Which of these is a low-context culture?
a. German
b. Chinese
c. Korean
d. Arab
e. Japanese

ANS: PTS: 1 DIF: 2 REF: 107
NAT: AACSB Analytic | Environmental Influence TYP: F

83. All of the following are considered emerging economies EXCEPT:
a. Brazil
b. Russia
c. India
d. China
e. Canada

ANS: PTS: 1 DIF: 2 REF: 89
NAT: AACSB Analytic | Environmental Influence TYP: F

84. The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries is called:
a. Standardization
b. Industrialization
c. Globalization
d. Internationalism
e. Linguistic pluralism

ANS: PTS: 1 DIF: 2 REF: 90
NAT: AACSB Analytic | Environmental Influence TYP: F

85. Creative Coverings is a small interior design company owned and managed by Lisa Smith. Since the company was established seven years ago, Lisa has only worked with clients near her hometown in Maryland. Creative Coverings fits into which stage of globalization?
a. Domestic
b. Regional
c. International
d. Multinational
e. Global

ANS: PTS: 1 DIF: 3 REF: 91
NAT: AACSB Analytic | Environmental Influence TYP: A

86. Exporting, licensing, and direct investing are called __________ strategies because they represent alternative ways to sell products and services in foreign markets.
a. globalized
b. expansion
c. retrenchment
d. market entry
e. concentrated business

ANS: PTS: 1 DIF: 2 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: F

87. CRL, a European plastics manufacturer, is considering forming an alliance with a U.S. military goods manufacturer to develop a new type of polymer that can be used for international industrial and military applications. Such a partnership represents what type of direct investment?
a. Franchising
b. Joint Venture
c. Wholly owned affiliate
d. Greenfield venture
e. Outsourcing

ANS: PTS: 1 DIF: 3 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: A

88. For the past several years, foreign companies have invested more in business in ________ than in any other place in the world.
a. Brazil
b. India
c. China
d. United States
e. Russia

ANS: PTS: 1 DIF: 2 REF: 96
NAT: AACSB Analytic | Environmental Influence TYP: F

89. With its large English-speaking population, _______ has numerous companies offering services such as call-center operations, data-processing, computer programming, and technical support.
a. Greenland
b. Russia
c. China
d. Mexico
e. India

ANS: PTS: 1 DIF: 2 REF: 97
NAT: AACSB Analytic | Information Technologies TYP: F

90. When the 2008 financial crisis began in the United States, it resulted in the collapse of the housing market and the failure of several large financial institutions. This crisis spread rapidly to the rest of the world. This example demonstrates which trend in the global economic environment?
a. Economic development differs widely among countries of the world
b. Market demands differ for products and services throughout the world
c. Political instability is the primary result of economic failure
d. World markets are economically interconnected
e. Cultural factors have a greater impact on world markets than do economic factors

ANS: PTS: 1 DIF: 3 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: A

91. A.R.C. is a large non-profit humanitarian aid organization that has been forced to pull out of several African markets in recent years due to civil wars and large-scale violence. This demonstrates which frequently cited problem for international companies?
a. Political instability
b. Communist governments
c. Economic instability
d. Political risk
e. Financial risk

ANS: PTS: 1 DIF: 3 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: A

92. Jana has a high tolerance for the unstructured, the unclear, and the unpredictable. She can best be described as having:
a. High uncertainty avoidance
b. Low uncertainty avoidance
c. High degree of individualism
d. Low degree of individualism
e. Low level of power distance

ANS: PTS: 1 DIF: 3 REF: 105
NAT: AACSB Analytic | Individual Dynamics TYP: A

93. Kim, a Japanese expatriate working in Denmark, tends to use communication primarily to build personal social relationships. She feels that relationships and trust are more important than business. Kim is surprised that her business associates in Denmark do not share the same views. Based on this information, Kim most likely grew up in what type of culture?
a. Human-oriented
b. Passive
c. Assertive
d. Low-context
e. High-context

ANS: PTS: 1 DIF: 3 REF: 108
NAT: AACSB Analytic | Individual Dynamics TYP: A

94. Sam is known by his colleagues as a great communicator, with an uncanny ability to shift speech patterns, expressions, and body language to be in tune with people from different cultures. Based on this example, Sam is strong in which component of cultural intelligence?
a. Cognitive
b. Emotional
c. Physical
d. Tangible
e. Intangible

ANS: PTS: 1 DIF: 3 REF: 111
NAT: AACSB Analytic | Individual Dynamics TYP: A

95. In 2010, which of the following countries formed a free trade area with the ten countries that make up the Association of Southeast Asian Nations (ASEAN)?
a. Laos
b. United States
c. Mexico
d. China
e. Japan

ANS: PTS: 1 DIF: 2 REF: 113
NAT: AACSB Analytic | Environmental Influence TYP: F

96. ________ is a concept that proposes that corporations can alleviate poverty and other social ills by selling to the world’s poorest people.
a. Cream of the crop
b. Skimming the barrel
c. Bottom of the pyramid
d. Top of the peak
e. Base hierarchy

ANS: PTS: 1 DIF: 2 REF: 115
NAT: AACSB Analytic | Creation of Value TYP: F

97. The Digitec company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make information technology available to people in places like rural Africa and rural India. This is known as what type of strategy?
a. Bottom of the pyramid strategy
b. Skimming the barrel strategy
c. Cream of the crop strategy
d. Top of the peak strategy
e. Base price strategy

ANS: PTS: 1 DIF: 3 REF: 115
NAT: AACSB Analytic | Information Technologies TYP: A

CASE

Scenario – Sharon Cannon

Sharon Cannon was an MBA student in Detroit, Michigan, with a managerial position at the Ford Motor Company plant. She was invited to join a company that had entered into a joint venture with a German firm to manage a Volkswagen plant. Sharon would be under contract for one year, with an option to renew for a total of three years. Her salary would be 350% more than she was currently earning, and she would be given two all-expenses paid vacations each year. The money and the benefits sounded very nice, but Sharon wasn’t sure what the best choice would be.

1. The degree of international involvement for the joint venture is an example of
a. outscoring.
b. exporting.
c. licensing.
d. direct investing.
e. greenfield venture.

ANS:

PTS: 1 DIF: 2 REF: 94
NAT: AACSB Analytic | Environmental Influence KEY: Scenario Questions
TYP: A

2. The American firm joining in the joint venture
a. faces lower risk than if it were using a wholly-owned foreign affiliate.
b. enjoys greater control than is it were using the wholly-owned affiliate.
c. can anticipate a lower cost than a company that uses global outscoring.
d. all of these.
e. none of these.

ANS:

PTS: 1 DIF: 2 REF: 94
NAT: AACSB Analytic | Environmental Influence KEY: Scenario Questions
TYP: A

3. If she should decide to take the job, she will be most successful in a foreign assignment if she has
a. culture shock
b. cultural intelligence
c. linguistic pluralism
d. ethnocentrism
e. geocentrism

ANS:

PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence KEY: Scenario Questions
TYP: A

COMPLETION

1. In the ____________________ stage, exports increase, and the company usually adopts a multidomestic approach, probably using an international division to deal with the marketing of products in several countries individually.

ANS:

PTS: 1 DIF: 2 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: F

2. In the ____________________ stage, the company has marketing and production facilities located in many countries and more than one-third of annual sales come from outside the home country.

ANS:

PTS: 1 DIF: 2 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: F

3. ____________________ means engaging in the international division of labor so that manufacturing can be done in countries with the cheapest sources of labor and supplies.

ANS:

PTS: 1 DIF: 2 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: F

4. ____________________ is the barter of products for products rather than the sale of products for currency.

ANS:

PTS: 1 DIF: 2 REF: 93
NAT: AACSB Analytic | Environmental Influence TYP: F

5. Whereby a company builds a subsidiary from scratch in a foreign country, is referred to as a(n) ____________________, and is the most risky type of direct investment.

ANS:

PTS: 1 DIF: 2 REF: 95
NAT: AACSB Analytic | Environmental Influence TYP: F

6. ____________________ is the management of business operations conducted in more than one country.

ANS:

PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

7. When it comes to economic development, a currently developing country is also called a(n) ____________________.

ANS:
LDC

PTS: 1 DIF: 2 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F

8. ____________________ is the criterion traditionally used to classify countries as developed or developing.

ANS:

PTS: 1 DIF: 2 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F

9. A country’s physical facilities that support economic activities make up its ____________________.

ANS:

PTS: 1 DIF: 2 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: F

10. ____________________ (objects, taboos, holidays) is a sociocultural factor in the international environment.

ANS

PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

11. The risk of loss due to actions by host country governments is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F

12. Riots, revolutions, civil disorders, and frequent changes in government that affect the operations of an international company shows ____________________ in a country.

ANS:

PTS: 1 DIF: 2 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F

13. Companies need to be cautious of ____________________ and ____________________ when going international because they differ from country to country.

ANS:

PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F

14. A nation’s ____________________ includes the shared knowledge, beliefs, and values, as well as the common modes of behavior and ways of thinking, among members of a society.

ANS:

PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F

15. The degree to which people accept inequality in power among institutions, organizations, and people is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F

16. A value characterized by people’s intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity refers to ____________________.

ANS:

PTS: 1 DIF: 2 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F

17. A preference for a loosely knit social framework in which individuals are expected to take care of themselves is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F

18. A preference for a tightly knit social framework in which individuals look after one another and organizations protect their members’ interests refers to ____________________.

ANS:

PTS: 1 DIF: 2 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F

19. ____________________ stands for preference for achievement, heroism, assertiveness, work centrality (with resultant high stress), and material success.

ANS:

PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

20. ____________________ reflects the values of relationships, cooperation, group decision making, and quality of life.

ANS:

PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

21. In countries where women are often in positions of high status, the Globe Project would describe that culture as high in ____________________.

ANS:

PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

22. A country that places emphasis on fairness and values kindness would be described by the Globe Project as high in ____________________.

ANS:

PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F

23. In a(n) ____________________, people use communication primarily to exchange facts and information.

ANS:

PTS: 1 DIF: 2 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F

24. ____________________ means that people have a tendency to regard their own culture as superior to other cultures.

ANS:

PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

25. An alliance begun in 1957 to improve economic and social conditions among its members,
it has evolved into the 27-nation __________.

ANS:

PTS: 1 DIF: 2 REF: 112
NAT: AACSB Analytic | Environmental Influence TYP: F

26. The ____________________ is the single European currency that has replaced 12 national currencies.

ANS:

PTS: 1 DIF: 2 REF: 112
NAT: AACSB Analytic | Environmental Influence TYP: F

27. ____________________ went into effect in early 1994, effectively creating a megamarket among the U.S., Canada, and Mexico.

ANS:

PTS: 1 DIF: 2 REF: 112
NAT: AACSB Analytic | Environmental Influence TYP: F

28. A multinational corporation typically receives at least ____________________% of its total sales revenues from outside the parent’s home country.

ANS:

PTS: 1 DIF: 2 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F

29. MNCs that are oriented toward the markets of individual foreign host countries are considered ____________________.

ANS:

PTS: 1 DIF: 2 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F

30. MNCs that are truly world-oriented and favor no specific country are considered ____________________.

ANS:

PTS: 1 DIF: 2 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F

31. ____________________ refers to a person’s ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.

ANS:

PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

32. ____________________ refers to the frustration and anxiety that result from constantly being subjected to strange and unfamiliar cues about what to do and how to do it.

ANS:

PTS: 1 DIF: 2 REF: 110
NAT: AACSB Analytic | Environmental Influence TYP: F

33. The frustration and anxiety that results from constantly being subjected to strange and unfamiliar cues about what to do and how to do it is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 110
NAT: AACSB Analytic | Environmental Influence TYP: F

SHORT ANSWER

1. List the four stages of globalization.

ANS:

PTS: 1 DIF: 2 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: F

2. List the three examples of direct investing mentioned in your text.

ANS:

PTS: 1 DIF: 2 REF: 94-95
NAT: AACSB Analytic | Environmental Influence TYP: F

3. List three examples of a country’s infrastructure.

ANS:

PTS: 1 DIF: 3 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: F

4. List the four dimensions of national value systems identified by Hofstede.

ANS:

PTS: 1 DIF: 2 REF: 103, 105-106
NAT: AACSB Analytic | Environmental Influence TYP: F

5. List five of the countries that make up the European Union (EU).

ANS:

PTS: 1 DIF: 2 REF: 112
NAT: AACSB Analytic | Environmental Influence TYP: F

6. List the three components of cultural intelligence.

ANS:

PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

ESSAY

1. Describe the four stages of globalization with specific reference to strategic orientation, stage of development, cultural sensitivity, and manager assumptions.

ANS:

PTS: 1 DIF: 3 REF: 92
NAT: AACSB Analytic | Environmental Influence TYP: F

2. What is global outsourcing? Identify a unique variation of global outsourcing.

ANS:

PTS: 1 DIF: 2 REF: 94
NAT: AACSB Analytic | Environmental Influence TYP: F

3. Direct investing means that the company is involved in managing the productive assets in a foreign country. There are three options for direct investing. Name and compare these three options.

ANS:

PTS: 1 DIF: 3 REF: 94-95
NAT: AACSB Analytic | Environmental Influence TYP: F

4. Identify and briefly explain at least two key factors in economic, sociocultural and political-legal environments that affect an organization.

ANS:

PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F

5. Briefly explain the difference between high power distance and low power distance.

ANS:

PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F

6. Describe GATT and the World Trade Organization.

ANS:

PTS: 1 DIF: 2 REF: 111
NAT: AACSB Analytic | Environmental Influence TYP: F

7. Explain NAFTA.

ANS:
.

PTS: 1 DIF: 3 REF: 112
NAT: AACSB Analytic | Environmental Influence TYP: F

8. Briefly describe the social characteristic of ethnocentrism and explain how this can have an impact on the success of an international manager.

ANS:

PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F

9. Briefly describe two personal challenges for global managers.

ANS:

PTS: 1 DIF: 2 REF: 109-110
NAT: AACSB Analytic | Environmental Influence TYP: F
Chapter 5—Managing Ethics and Social Responsibility

TRUE/FALSE

1. A public poll finds that 79 percent of respondent believe cheating in business is more common today than it was ten years ago.

ANS: PTS: 1 DIF: 2 REF: 123
NAT: AACSB Analytic | Ethical Responsibilities TYP: F

2. The domain of codified law pertains to behavior about which the law has no say and for which an individual or organization enjoys complete freedom.

ANS: PTS: 1 DIF: 1 REF: 122
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

3. Ethics, found between the domains of law and free choice, is the code of moral principles that governs any individual or groups.

ANS: PTS: 1 DIF: 1 REF: 123
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

4. Free choice lies between the domains of codified law and ethics.

ANS: PTS: 1 DIF: 2 REF: 122
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

5. If something is ethical, it must not be illegal.

ANS: PTS: 1 DIF: 1 REF: 123
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

6. An ethical dilemma arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.

ANS: PTS: 1 DIF: 2 REF: 125
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

7. The moral agent is an individual who must make an ethical choice in an organization.

ANS: PTS: 1 DIF: 1 REF: 125
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

8. Utilitarian, individualism, moral-rights, and objective dualism are the four approaches that guide ethical decision-making.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

9. The basis for the recent trend among companies to police employee personal habits such as alcohol and tobacco consumption on the job is called the utilitarian ethic.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

10. Monitoring the Internet to maintain the company’s ethical climate and workplace productivity could be considered part of an individualistic approach.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

11. The ethical concept that acts are moral when they promote the individual’s best long term interests, which ultimately leads to the greater good, is known as the moral rights approach.

ANS: PTS: 1 DIF: 1 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

12. The ethical concept that argues that moral behaviors produce the greatest good for the greatest number of people is objective dualism.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

13. In the individualism approach, the right of free speech must be considered.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

14. Individualism is popular in the highly organized society of today because it supports immediate self-gain.

ANS: PTS: 1 DIF: 3 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

15. The right of free consent, the right to privacy, and the right of freedom of conscience are rights that should be considered in the moral rights approach.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

16. Procedural justice requires that different treatment of people not be based on arbitrary characteristics.

ANS: PTS: 1 DIF: 1 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

17. The justice approach is closest to the thinking underlying the domain of free choice.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

18. Procedural justice requires that rules be stated clearly, consistently and impartially enforced, and administered fairly.

ANS: PTS: 1 DIF: 2 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

19. The Preconventional level of Personal Moral Development lives up to expectations of others, upholds laws, and fulfills duties and obligations of the social system.

ANS: PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

20. Level 3 of the Personal Moral Development model is Conventional.

ANS: PTS: 1 DIF: 1 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

21. Most of the laws guiding human resource management are based on the individualism approach.

ANS: PTS: 1 DIF: 3 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

22. Individuals, at the preconventional level, are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences.

ANS: PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

23. Individuals are concerned with external rewards and punishments at the principled level.

ANS: PTS: 1 DIF: 1 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

24. An individual at the postconventional level lives up to expectations of others, fulfills duties and obligations of social systems, and upholds law.

ANS: PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

25. Principled level of moral development is also referred to as the postconventional level.

ANS: PTS: 1 DIF: 1 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

26. The majority of managers operate at the preconventional level of personal moral development.

ANS: PTS: 1 DIF: 2 REF: 130
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

27. Approximately 20% of American adults, according to your text, ever reach the postconventional level of moral development.

ANS: PTS: 1 DIF: 3 REF: 130
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

28. The great majority of managers operate at level two, the conventional level.

ANS: PTS: 1 DIF: 2 REF: 130
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

29. MANAGER’S SHOPTALK in Chapter 5 recommends that when challenging your boss on ethical issues you do not demand a resolution on the spot.

ANS: PTS: 1 DIF: 2 REF: 131
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

30. The NEW MANAGER SELF-TEST in Chapter 5 suggests that orienting new people, even though it is not required, often reflects a person’s level of moral development.

ANS: PTS: 1 DIF: 2 REF: 132
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

31. Social responsibility is management’s obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization.

ANS: PTS: 1 DIF: 1 REF: 132
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

32. Social responsibility covers a narrow range of issues, many of which are unambiguous with respect to right or wrong.

ANS: PTS: 1 DIF: 2 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

33. Important stakeholders in corporations include the government and the community.

ANS: PTS: 1 DIF: 1 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

34. A stakeholder is any group within or outside the organization that has a stake in the organization’s performance.

ANS: PTS: 1 DIF: 1 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

35. All stakeholders of an organization are its stockholders but not all stockholders are its stakeholders.

ANS: PTS: 1 DIF: 3 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

36. Special interest groups include trade associations, political action committees and consumerists.

ANS: PTS: 1 DIF: 1 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

37. Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations refers to sustainability.

ANS: PTS: 1 DIF: 1 REF: 135
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

38. One study found that MBA students would forgo an average of $13,700 in compensation to work for a sustainable company.

ANS: PTS: 1 DIF: 3 REF: 135
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

39. Economic, legal, ethical, and discretionary responsibilities are the four areas of social responsibility which can be used to evaluate corporate social performance.

ANS: PTS: 1 DIF: 2 REF: 136
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

40. Economic responsibility defines what society deems as important with respect to appropriate corporate behavior.

ANS: PTS: 1 DIF: 2 REF: 136
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

41. Ethical responsibility includes behaviors that are not necessarily codified into law and may not serve the corporation’s direct economic interests.

ANS: PTS: 1 DIF: 1 REF: 137
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

42. Ethical behavior occurs when decisions enable an individual or company to gain at the expense of society.

ANS: PTS: 1 DIF: 1 REF: 137
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

43. Unfortunately, discretionary responsibility is involuntary and is mandated by economics, law, or ethics.

ANS: PTS: 1 DIF: 2 REF: 137
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

44. A formal statement of the organization’s values regarding moral principles and governing its response to social values is called a code of ethics.

ANS: PTS: 1 DIF: 1 REF: 139
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

45. Managers who are essentially ethical individuals make up the first pillar of an ethical organization.

ANS: PTS: 1 DIF: 1 REF: 139
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

46. Principle-based statements define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees.

ANS: PTS: 1 DIF: 2 REF: 139
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

47. Policy-based statements generally outline the procedure to be used in specific ethical situations.

ANS: PTS: 1 DIF: 2 REF: 139
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

48. One of the newest positions in organizations is the chief operating officer, a response to widespread financial wrongdoing in recent years.

ANS: PTS: 1 DIF: 2 REF: 140
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

49. A group of executives appointed to oversee company ethics is an ethics committee.

ANS: PTS: 1 DIF: 2 REF: 140
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

50. A chief ethics officer is a company executive who oversees all aspects of ethics and legal compliance.

ANS: PTS: 1 DIF: 2 REF: 140
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

51. Ethics training programs are not an important supplement as long as a well-written code of ethics exists.

ANS: PTS: 1 DIF: 2 REF: 140
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

52. The disclosure by an employee of illegal, immoral, or illegitimate practices by the organization is called whistle-blowing.

ANS: PTS: 1 DIF: 1 REF: 141
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

53. Managers are often concerned good citizenship will hurt performance.

ANS: PTS: 1 DIF: 1 REF: 141
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

54. Courage does not play a role in the development of unethical or even illegal behavior.

ANS: PTS: 1 DIF: 1 REF: 121
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

55. Managers carry a tremendous responsibility for setting the ethical climate in an organization and can act as role models for others.

ANS: PTS: 1 DIF: 1 REF: 124
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

56. Most ethical dilemmas in business involve a conflict between stakeholders and shareholders.

ANS: PTS: 1 DIF: 2 REF: 126
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

57. The virtue ethics approach to ethical decision making sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.

ANS: PTS: 1 DIF: 3 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

58. The virtue ethics approach to ethical decision making says that moral behavior stems from personal virtues.

ANS: PTS: 1 DIF: 3 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

59. A survey of 6,000 global consumers in the fall of 2008 found that 87 percent believe it is their “duty” to contribute to a better environment.

ANS: PTS: 1 DIF: 2 REF: 135
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

60. Economic responsibility, carried to the extreme, is called the profit-maximizing view.

ANS: PTS: 1 DIF: 2 REF: 136
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

61. Although public confidence in business managers is at an all-time low, politics, sports, and non-profit organizations have not been affected.

ANS: PTS: 1 DIF: 1 REF: 123
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

MULTIPLE CHOICE

1. Which of the following refers to the code of moral principles and values that govern behaviors with respect to what is right and wrong?
a. Social responsibility
b. Free domain
c. Ethics
d. Codified law
e. Discretionary responsibility

ANS: PTS: 1 DIF: 1 REF: 122
NAT: AACSB Analytic | Ethical Responsibilities TYP: F

2. An organization’s decision to produce a new product is in the
a. domain of codified law.
b. domain of free choice.
c. domain of ethics.
d. domain of compensatory justice.
e. domain of social responsibility.

ANS: PTS: 1 DIF: 2 REF: 123
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

3. A new drug has not been approved by the FDA to sell in the U.S. because further testing is needed. The company has a chance to sell its product in another country immediately to start recovering the costs of R & D and production three years ahead of time. This example places the decision in which of the categories from the text?
a. The ethical domain
b. The domain of free choice
c. The legal domain
d. The obstructive category
e. The protective domain

ANS: PTS: 1 DIF: 3 REF: 123
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

4. Which of the following is a(n) is the individual who must make an ethical choice in an organization?
a. The symbolic leader
b. An obstructive manager
c. The defensive individual
d. The moral agent
e. An authoritarian manager

ANS: PTS: 1 DIF: 1 REF: 125
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

5. Sharon is a manager at Softest Tissue Corporation. She is faced with an interesting problem. One of her employees has been cheating the company out of expense money. Sharon must decide whether or not to fire this employee. In this role, Sharon is acting as
a. a moral agent.
b. an ethical theorist.
c. a symbolic leader.
d. an authoritarian leader.
e. an obstructive manager.

ANS: PTS: 1 DIF: 2 REF: 125
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

6. The assumption that “If it’s not illegal, it must be ethical,” ignores which of the following?
a. Domain of codified law
b. Domain of ethics
c. Domain of free choice
d. Discretionary responsibility
e. Domain of symbolism

ANS: PTS: 1 DIF: 2 REF: 123
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

7. A situation that arises when all alternative choices or behaviors have been deemed undesirable because of the potentially negative ethical consequences, making it difficult to distinguish right from wrong, is considered
a. a moral agent.
b. a social responsibility.
c. an ethical dilemma.
d. an ethical standard.
e. discretionary responsibility.

ANS: PTS: 1 DIF: 2 REF: 125
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

8. A normative approach to ethical decision making
a. reduces ethical dilemmas to easy-to-understand formulas.
b. uses various approaches to describe guiding values for decisions.
c. states that everyone must use their employer’s value system at work.
d. dictates only one way to choose to resolve dilemmas.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

9. Which approach is the ethical concept that moral behaviors produce the greatest good for the greatest number?
a. Defensive
b. Justice
c. Utilitarian
d. Individualism
e. Moral-rights

ANS: PTS: 1 DIF: 1 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

10. Robbie’s Robots decided to continue operations at one plant while shutting down another. The decision was justified on the basis of what was best for the total corporation. This is an example of the
a. utilitarian approach.
b. individualism approach.
c. moral-justice approach.
d. justice approach.
e. illegal approach.

ANS: PTS: 1 DIF: 3 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

11. Caleb is a manager at Computer-Care Company. He is expected to consider the effort of each decision alternative on all parties and select the one that optimizes the satisfaction for the greatest number of people. This is an example of the
a. utilitarian approach.
b. individualism approach.
c. moral-justice approach.
d. justice approach.
e. soft-line managerial approach.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

12. Which ethical approach are companies citing to justify their policing of employee’s personal habits on and off the job, such as alcohol and tobacco consumption?
a. Justice approach
b. Utilitarian approach
c. Individualism approach
d. Moral-justice approach
e. Discretionary responsibility

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

13. The ____ ethic was the basis for the state of Oregon’s decision to extend Medicaid to 400,000 previously ineligible recipients by refusing to pay for high-cost, high-risk procedures.
a. justice
b. moral-rights
c. obstructive
d. individualism
e. utilitarian

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

14. When everyone is pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest is an example of ____.
a. utilitarian approach
b. individualism approach
c. moral-justice approach
d. justice approach
e. social responsibility

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

15. Which of the following is NOT a normative ethics approach?
a. Utilitarian approach
b. Individualism approach
c. Social responsibility approach
d. Moral-rights approach
e. All of these are normative approaches as described in the text.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

16. The golden rule “do unto others as they would do unto you” is
a. an example of the utilitarian approach to ethical behavior.
b. representative of the moral-justice approach to moral decision making.
c. an example of the values that guide the individualism approach to ethical behavior.
d. silly and outdated.
e. an example of the justice approach to ethical behavior.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

17. Human beings have fundamental rights and liberties that cannot be taken away by another individual’s decision. This ethical decision making approach is known as the
a. utilitarian approach.
b. individualism approach.
c. moral-rights approach.
d. dualism approach.
e. None of these.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

18. The ____ refers to the ethical concept that moral decisions are those that best maintain the rights of those people affected by them.
a. individualism approach
b. justice approach
c. utilitarian approach
d. moral-rights approach
e. discretionary responsibility approach

ANS: PTS: 1 DIF: 1 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

19. Which of the following is NOT one of the moral rights that could be considered during decision-making?
a. The right to free consent
b. The right to invade privacy
c. The right to free speech
d. The right of freedom of conscience
e. The right to life and safety

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

20. ____ refers to the concept that different treatment of people should not be based on arbitrary characteristics.
a. Procedural justice
b. Compensatory justice
c. Distributive justice
d. Organizational justice
e. Moral-justice

ANS: PTS: 1 DIF: 1 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

21. Individualism is most closely related to
a. social responsibility.
b. free choice.
c. economic responsibility.
d. codified law.
e. togetherness.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

22. ____ to ethical decision-making is consistent with due process, free consent, privacy, freedom of conscience and free speech.
a. Moral-rights approach
b. Individualism approach
c. Utilitarian approach
d. Justice approach
e. Dual-economic approach

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

23. Sexual harassment is unethical because it violates an important part of which approach to ethical behavior?
a. The utilitarian approach
b. The individualism approach
c. The justice approach
d. The moral-rights approach
e. The defensive approach

ANS: PTS: 1 DIF: 3 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

24. The ethical decision approach that requires persons to be guided by standards of equity, fairness and impartiality is the
a. moral-rights approach.
b. individualism approach.
c. utilitarian approach.
d. justice approach.
e. discretionary responsibility.

ANS: PTS: 1 DIF: 1 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

25. The moral rights approach that deals with performing experimental treatment on unconscience trauma patient is the
a. right of free consent.
b. right to privacy.
c. right of freedom of conscience.
d. right of free speech.
e. right of due process.

ANS: PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

26. Which of the following is not a concern to managers under the justice approach?
a. Compensatory justice
b. Distributive justice
c. Procedural justice
d. Obstructive justice
e. All of these

ANS: PTS: 1 DIF: 1 REF: 127-128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

27. Disk Replacement Services has just completed a procedure manual to handle employee grievances. One of the main criteria is to make it clear to employees that rules will be administered fairly and consistently. Disk Replacement operates on
a. the procedural justice approach.
b. the utilitarian approach.
c. the individual approach.
d. the defensive approach.
e. the free-choice approach.

ANS: PTS: 1 DIF: 2 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

28. Which of these refers to procedural justice?
a. The concept that different treatment of people should not be based on arbitrary characteristics
b. The concept that rules should be clearly stated and consistently and impartially enforced
c. The concept that individuals should be compensated for the cost of their injuries by the party responsible
d. The concept that people should be treated differently
e. None of these

ANS: PTS: 1 DIF: 1 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

29. The concept that the party responsible should compensate individuals for the cost of their injuries is referred to as
a. distributive justice.
b. injury justice.
c. procedural justice.
d. organizational justice.
e. compensatory justice.

ANS: PTS: 1 DIF: 1 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

30. The thinking underlying the domain of ____ is the closest to the justice approach.
a. social responsibility
b. free choice
c. law
d. discretionary responsibility
e. ethics

ANS: PTS: 1 DIF: 2 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

31. Most of the laws guiding human resource management are based on the
a. utilitarian approach.
b. moral-rights approach.
c. individualism approach.
d. justice approach.
e. collectivism approach.

ANS: PTS: 1 DIF: 3 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

32. ____ is NOT included in the model of personal moral development described in your text.
a. Preconventional level
b. Conventional level
c. Principled level
d. Postconventional level
e. All of these are included in the model

ANS: PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

33. In what stage of personal moral development is a person mostly concerned with external rewards and personal consequences of an action?
a. Preconventional
b. Conventional
c. Principled
d. Discretionary
e. None of these

ANS: PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

34. Most people have learned to conform to expectations of good behavior expected by colleagues, family, friends, and society. They are in what stage of moral development?
a. Preconventional
b. Conventional
c. Discretionary
d. Principled
e. Traditional

ANS: PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

35. Which of these best illustrates the preconventional stage of moral development?
a. Everybody else is doing it, so it must be okay.
b. What would my boss think if I did this?
c. I know this is not right, and I will not do it, even if everyone else is.
d. What am I going to get from making this decision?
e. All of these

ANS: PTS: 1 DIF: 3 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

36. The conventional stage of moral development is best described by which of the following statements?
a. I won’t do that because the boss will be upset with me.
b. Everybody else is doing it, so it must be okay.
c. I know this is not right, and I will not do it, even if everyone else is.
d. What am I going to get from making this decision?
e. All of these

ANS: PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

37. The ____ leadership style matches with the preconventional level of personal moral development.
a. autocratic
b. team oriented
c. servant leadership
d. guiding/encouraging
e. transforming

ANS: PTS: 1 DIF: 3 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

38. ____ matches with the preconventional level of personal moral development.
a. Work group collaboration
b. Task accomplishment
c. Empowered employees
d. Full participation
e. Transforming

ANS: PTS: 1 DIF: 3 REF: 130
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

39. Which of these employee behaviors matches with the conventional level of personal moral development?
a. Task accomplishment
b. Empowered employees
c. Work group collaboration
d. Full participation
e. Act in own interest

ANS: PTS: 1 DIF: 3 REF: 130
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

40. Which of the following stages is the stage of personal moral development in which an individual develops an internal set of standards and values?
a. Preconventional
b. Conventional
c. Principled
d. Discretionary
e. Social

ANS: PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

41. People making decisions based on an internal set of beliefs that has more meaning to them than the expectations of others
a. are in the preconventional level of moral development.
b. are in the conventional level of moral development.
c. are in the principled level of moral development.
d. do not care what people think of them.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 129-130
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

42. ____ matches with the postconventional level of personal moral development.
a. Team oriented
b. Autocratic
c. Guiding/encouraging
d. Coercive
e. Servant leadership

ANS: PTS: 1 DIF: 3 REF: 130
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

43. Which of these employee behaviors matches with the postconventional level of personal moral development?
a. Empowered employees, full participation
b. Task accomplishment
c. Act in own interest
d. Work group collaboration
e. Autocratic

ANS: PTS: 1 DIF: 3 REF: 130
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

44. The great majority of managers operate at the
a. preconventional level.
b. principled level.
c. conventional level.
d. postconventional level.
e. autocratic level.

ANS: PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

45. Only about ____ percent of American adults reach the level-three stage of moral development.
a. two
b. four
c. eleven
d. fifteen
e. twenty

ANS: PTS: 1 DIF: 3 REF: 130
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

46. Regarding the levels of personal moral development, the majority of managers operate at the ____ level.
a. preconventional
b. autocratic
c. postconventional
d. conventional
e. transformative

ANS: PTS: 1 DIF: 2 REF: 130
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

47. MANAGER’S SHOPTALK in Chapter 5 suggests all of the following when challenging the boss on ethical issues EXCEPT:
a. do your research
b. begin the meeting by taking the floor
c. pay attention to your word choice and demeanor
d. take care how you suggest your alternative solution
e. be patient

ANS: PTS: 1 DIF: 1 REF: 131
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

48. The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization is referred to as
a. organizational responsibility.
b. social responsibility.
c. discretionary responsibility.
d. economic responsibility.
e. none of these.

ANS: PTS: 1 DIF: 1 REF: 132
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

49. Which of these is true about the policy a bank adopts toward its investing of depositor’s money?
a. It is an expression of its philosophy of social responsibility.
b. It is important only to the community.
c. It has no ethical implications.
d. It would represent its personal state of moral development.
e. All of these.

ANS: PTS: 1 DIF: 2 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

50. Any group within or outside the organization that has a stake in the organization’s performance is called
a. a supplier.
b. an international customer.
c. a stakeholder.
d. OPEC.
e. a trade association.

ANS: PTS: 1 DIF: 1 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

51. Primary stakeholders of an organization include
a. employees.
b. customers.
c. investors and shareholders.
d. suppliers.
e. all of these.

ANS: PTS: 1 DIF: 1 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

52. All of the following are examples of special interest groups EXCEPT
a. professional associations.
b. trade associations.
c. political action committees.
d. courts.
e. consumerists.

ANS: PTS: 1 DIF: 2 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

53. What type of a stakeholder would a nature conservation group be for a paper manufacturing company?
a. Supplier
b. Competitor
c. Employee
d. Special interest group
e. None of these

ANS: PTS: 1 DIF: 2 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

54. With a philosophy of ____, managers weave environmental and social concerns into every strategic decision, revise policies and procedures to support these efforts and goals.
a. sustainability
b. conservation
c. ethics
d. preservation
e. human concerns

ANS: PTS: 1 DIF: 2 REF: 135
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

55. ____ is economic development that generates wealth and meets the needs of their current generation while focusing on future generations.
a. Ethical management
b. Activist strategy
c. Sustainability
d. Market strategy
e. Future management

ANS: PTS: 1 DIF: 2 REF: 135
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

56. Which of the following concepts argues that organizations can find innovative ways to create wealth at the same time they are preserving natural resources?
a. Preservation
b. Conservation
c. Environmentalism
d. Protectionism
e. Sustainability

ANS: PTS: 1 DIF: 2 REF: 135
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

57. According to the book’s model for judging corporate social performance, social responsibility is divided into what into four sections?
a. Ethical, legal, technical, and rational
b. Mandatory, technical, discretionary, and economic
c. Legal, mandatory, economic, and ethical
d. Discretionary, legal, economic, and ethical
e. None of these

ANS: PTS: 1 DIF: 2 REF: 136
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

58. ____ is considered a decision that enables an individual or company to benefit at society’s expense.
a. A legal behavior
b. An unethical behavior
c. An economic responsibility
d. A discretionary responsibility
e. A responsible behavior

ANS: PTS: 1 DIF: 2 REF: 137
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

59. ____ includes behavior that is not always written down and may actually not serve an organization’s bottom-line.
a. Legal responsibility
b. Economic responsibility
c. Ethical responsibility
d. Discretionary responsibility
e. None of these

ANS: PTS: 1 DIF: 2 REF: 137
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

60. With respect to appropriate corporate behavior, what society deems ____ as important.
a. ethical responsibility
b. discretionary responsibility
c. economic responsibility
d. legal responsibility
e. moral responsibility

ANS: PTS: 1 DIF: 2 REF: 136
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

61. Which of the following responsibilities is purely voluntary and is guided by a company’s desire to make social contributions not mandated by economics, law, or ethics?
a. Ethical
b. Economic
c. Legal
d. Discretionary
e. Stakeholder

ANS: PTS: 1 DIF: 1 REF: 137
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

62. ____ is the responsibility that goes beyond societal expectations to contribute to the community welfare.
a. Ethical responsibility
b. Discretionary responsibility
c. Economic responsibility
d. Legal responsibility
e. Technical responsibility

ANS: PTS: 1 DIF: 2 REF: 138
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

63. ____ means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives.
a. Ethical leadership
b. Followership
c. Corporate espionage
d. Command-and-control approach
e. Concern for production leadership

ANS: PTS: 1 DIF: 1 REF: 138
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

64. A code of ____ is a formal statement of the company’s values concerning ethics and social issues.
a. integrity
b. trust
c. citizenship
d. ethics
e. honesty

ANS: PTS: 1 DIF: 1 REF: 139
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

65. Statements that define fundamental values and reference organizational responsibilities, products and employees are often called ____.
a. principle-based
b. policy-based
c. ethically-based
d. codified
e. codes of organizational integrity

ANS: PTS: 1 DIF: 1 REF: 139
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

66. An example of an ethical structure is
a. chief ethics officer.
b. a formal statement of company values.
c. an equal opportunity policy.
d. whistle-blowing.
e. corporate speech.

ANS: PTS: 1 DIF: 2 REF: 140
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

67. When an official is given the responsibility of overseeing all aspects of ethics and legal compliance. S/he is referred to as
a. a whistle-blower.
b. a chief ethics officer.
c. vice-president of human resource management.
d. a yes-man.
e. a political play.

ANS: PTS: 1 DIF: 1 REF: 140
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

68. Which of these is the disclosure by an employee of an illegal activity?
a. Tattling
b. Whistle-blowing
c. Organizational communication
d. The filing of a disclosure statement
e. Snooping

ANS: PTS: 1 DIF: 1 REF: 141
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

69. ____ is not part of the structures and systems pillar of an ethical organization.
a. Corporate culture
b. Code of ethics
c. Ethics committee
d. Whistle-blowing mechanisms
e. Rewarding ethical behavior

ANS: PTS: 1 DIF: 2 REF: 139
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

70. The relationship between social responsibility and financial performance has been shown to be ____.
a. non-existent
b. positive
c. negative
d. not important
e. a reflection of top leadership

ANS: PTS: 1 DIF: 2 REF: 141
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

71. Anne Chinoda, top executive at Florida Blood Centers, is under pressure to resign because she took a $71,000 pay increase just months before she laid off 42 employees. Chinoda’s decision lies in the
a. domain of codified law. d. domain of social responsibility.
b. domain of free choice. e. none of these.
c. domain of ethics.

ANS: PTS: 1 DIF: 3 REF: 123
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

72. A recent poll found that ________ percent of people surveyed say corporate America’s moral compass is pointing in the wrong direction.
a. 10 d. 76
b. 29 e. 98
c. 52

ANS: PTS: 1 DIF: 2 REF: 124
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

73. When the USS Indianapolis sank after being torpedoed, one Navy pilot disobeyed orders and risked is life to save men who were being picked off by land sharks. The Navy pilot was operating from the ________ level of moral development.
a. preconventional d. lowest
b. conventional e. conservative
c. postconventional

ANS: PTS: 1 DIF: 3 REF: 130
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

74. The profit-maximizing view of economic responsibility is advocated by ________.
a. Milton Friedman d. Warren Buffett
b. Arthur Anderson e. Steve Jobs
c. Donald Trump

ANS: PTS: 1 DIF: 2 REF: 136
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

75. Of the following, which may whistle-blowers suffer?
a. Job loss d. Hostile work environment
b. Ostracism by coworkers e. All of the above
c. Transfer to lower-level position

ANS: PTS: 1 DIF: 2 REF: 141
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

76. Examples of unethical behavior toward ________ include a hostile work environment and violations of health and safety rules.
a. customers d. suppliers
b. financiers e. employees
c. society

ANS: PTS: 1 DIF: 1 REF: 124
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

77. The decision by ABC International to downsize and reduce its labor force is in the
a. domain of codified law. d. social responsibility.
b. domain of free choice. e. none of these.
c. domain of ethics.

ANS: PTS: 1 DIF: 2 REF: 122-123
NAT: AACSB Ethics | Ethical Responsibilities TYP: A

CASE

Scenario – Larry Campbell

The pressure was on again. Larry Campbell, the Vice President at ToolTime Hardware, Inc., was receiving requests from men and women inside the firm and outside the firm, asking him to review the company’s promotion policies. Of the 52 middle and high level executives, only three were women. The pressure was to review the policies that had led to this perceived imbalance and, if appropriate, take the steps necessary for correction.

1. The decision to recruit, hire, train and promote both men and women equally is based on the ethical approach of
a. utilitarian approach.
b. individualism approach.
c. moral rights approach.
d. all of these provide the basis.
e. none of these.

ANS:

PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities KEY: Scenario Questions
TYP: A

2. Using the justice approach for ethical decision-making, the logic of promoting qualified men and women would be supported by
a. equal rights justice.
b. distributive justice.
c. procedural justice.
d. compensatory justice.
e. all of these.

ANS:

PTS: 1 DIF: 2 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities KEY: Scenario Questions
TYP: A

3. A(n) _______ would outline the procedures Larry should use in this and other ethical situations.
a. principle-based statement
b. code of ethics
c. corporate credo
d. policy-based statement
e. ethics committee

ANS:

PTS: 1 DIF: 2 REF: 139
NAT: AACSB Ethics | Ethical Responsibilities KEY: Scenario Questions
TYP: A

COMPLETION

1. __________ is the code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.

ANS:

PTS: 1 DIF: 1 REF: 122
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

2. When values and standards are written into the legal system, it is referred to as ______.

ANS:

PTS: 1 DIF: 2 REF: 122
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

3. A(n) ________ arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.

ANS:

PTS: 1 DIF: 2 REF: 125
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

4. The ________ is an individual responsible for making an ethical choice.

ANS:

PTS: 1 DIF: 2 REF: 125
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

5. The ethical concept that moral behaviors produce the greatest good for the greatest number is referred to as ________ approach.

ANS:

PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

6. The _________ approach contends that acts are moral when they promote the individual’s best long-term interests.

ANS:

PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

7. The _________ approach assets that human beings have fundamental rights and liberties that cannot be taken away by an individual’s decision.

ANS:

PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

8. The ________ approach holds that moral decisions must be based on standards of equity, fairness, and impartiality.

ANS:

PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

9. __________ justice requires that different treatment of people not be based on arbitrary characteristics.

ANS:

PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

10. ________ justice requires that rules should be clearly stated and consistently and impartially enforced.

ANS:

PTS: 1 DIF: 2 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

11. ________ justice argues that individuals should be compensated for the cost of their injuries by the party responsible.

ANS:

PTS: 1 DIF: 2 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

12. At the _________ level of personal moral development, individuals are most concerned with external rewards and punishments.

ANS:

PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

13. People learn to conform to the expectations of good behavior that are set by peers and society at the _________ level.

ANS:

PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

14. Individuals at the __________ level are guided by an internal set of values and standards and will even disobey rules or laws that violate these principles.

ANS:

PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

15. Most managers operate at the _________ level.

ANS:

PTS: 1 DIF: 2 REF: 130
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

16. Management’s obligation to make choices that will contribute to the well being of both the organization and society is known as __________.

ANS:

PTS: 1 DIF: 2 REF: 132
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

17. A(n) _________ is any group within or outside the organization that has a stake in the organization’s performance.

ANS:

PTS: 1 DIF: 2 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

18. Organizations that are ________ responsible consider the effects of their actions on all stakeholder groups and may invest in a number of philanthropic causes that benefit stakeholders.

ANS:

PTS: 1 DIF: 2 REF: 132
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

19. __________ refers to interacting with the community in which a company does business in a way that makes money for the company but also improves the long-term well-being of the community.

ANS:

PTS: 1 DIF: 2 REF: 135
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

20. When a company does just what is necessary to satisfy legal requirements, it falls under the _________ approach in shades of green.

ANS:

PTS: 1 DIF: 2 REF: 143
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

21. ___________ responsibility is purely voluntary and guided by a company’s desire to make social contributions not mandated by economics, law, or ethics.

ANS:

PTS: 1 DIF: 2 REF: 137
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

22. A(n) __________ is a formal statement of the company’s values concerning ethics and social issues; it communicates to employees what the company stands for.

ANS:

PTS: 1 DIF: 2 REF: 139
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

23. __________ generally outline the procedures to be used in specific ethical situations, such as marketing practice, conflicts of interest, and observance of laws.

ANS:

PTS: 1 DIF: 2 REF: 139
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

24. A group of executives assigned to oversee the organization’s ethics by ruling on questionable issues and disciplining violators is referred to as a(n) _________.

ANS

PTS: 1 DIF: 2 REF: 140
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

25. __________ programs help employees deal with ethical questions and translate the values stated in a code of ethics into everyday behavior.

ANS:

PTS: 1 DIF: 2 REF: 140
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

26. Employee disclosure of illegal organization activities is known as ________.

ANS:

PTS: 1 DIF: 2 REF: 141
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

27. The relationship between social responsibility and financial performance has been shown to be __________.

ANS:

PTS: 1 DIF: 2 REF: 141
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

28. A decision to monitor employees’ nonwork activities violates the right to ________.

ANS:

PTS: 1 DIF: 1 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

29. The ________ approach to ethical decision making sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.

ANS:

PTS: 1 DIF: 2 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

30. The ________ approach to ethical decision making says that moral behavior stems from personal virtues.

ANS:

PTS: 1 DIF: 2 REF: 128
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

31. The ________ approach to economic responsibility means that economic gain is the only social responsibility and can lead companies into trouble.

ANS:

PTS: 1 DIF: 2 REF: 136
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

SHORT ANSWER

1. List the four criteria for ethical decision-making described in the book.

ANS:

PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

2. List three of the six moral rights that should be considered during decision making.

ANS:

PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

3. List three examples of primary stakeholders.

ANS:

PTS: 1 DIF: 2 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

4. List the four responsibilities of corporate social performance.

ANS:

PTS: 1 DIF: 2 REF: 136
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

ESSAY

1. Define ethics and explain how the domain of ethics relates to law and free choice.

ANS:

PTS: 1 DIF: 2 REF: 122-123
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

2. List the four approaches that are used to describe values for guiding ethical decision making. Briefly describe each.

ANS:

PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

3. Briefly explain the justice approach to ethics and then explain the three types of justice.

ANS:

PTS: 1 DIF: 2 REF: 127
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

4. List and define the stages of moral development.

ANS:

PTS: 1 DIF: 2 REF: 129
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

5. What is social responsibility? Why is it considered a difficult concept to grasp?

ANS:

PTS: 1 DIF: 2 REF: 132
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

6. Explain the concept of a stakeholder and list five common stakeholders.

ANS:

PTS: 1 DIF: 1 REF: 133
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

7. List and define the criteria of corporate social responsibility.

ANS:

PTS: 1 DIF: 3 REF: 142-143
NAT: AACSB Ethics | Ethical Responsibilities TYP: F

8. Explain the differences between principle-based statements and policy-based statement in an organization’s code of ethics.

ANS:

PTS: 1 DIF: 3 REF: 144-145
NAT: AACSB Ethics | Ethical Responsibilities TYP: F
Chapter 6—Managing Small Business Start-Ups

TRUE/FALSE

1. Sole proprietorships are the fastest growing segment of small business in both the U.S. and Canada.

ANS: T PTS: 1 DIF: 1 REF: 147
NAT: AACSB Analytic | Creation of Value TYP: F

2. The fastest growing segment of small business in both the U.S. and Canada is partnerships.

ANS: F PTS: 1 DIF: 1 REF: 147
NAT: AACSB Analytic | Creation of Value TYP: F

3. The process of initiating a business venture, gathering and organizing the appropriate resources, and assuming the associated risks and rewards refers to Entrepreneurship.

ANS: T PTS: 1 DIF: 1 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

4. Sole proprietorships are the fastest growing segment of small business.

ANS: T PTS: 1 DIF: 1 REF: 147
NAT: AACSB Analytic | Strategy TYP: F

5. Entrepreneurs in the sustainer category are rewarded by the personal satisfaction of being business owners.

ANS: F PTS: 1 DIF: 2 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

6. Entrepreneurs in the sustainer category alike the chance to balance work and personal life and often don’t want the business to grow too large.

ANS: T PTS: 1 DIF: 2 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

7. Entrepreneurs in the optimizer category are rewarded by the personal satisfaction of being business owners.

ANS: T PTS: 1 DIF: 2 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

8. Optimizers are rewarded by chance to work on something new and creative.

ANS: F PTS: 1 DIF: 3 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

9. Small businesses represent 68 percent of all firms and employ about three quarters of all private sector employees.

ANS: F PTS: 1 DIF: 3 REF: 150
NAT: AACSB Analytic | Creation of Value TYP: F

10. The primary focus of most entrepreneurs is retail, manufacturing and/or service type of businesses.

ANS: T PTS: 1 DIF: 1 REF: 151
NAT: AACSB Analytic | Creation of Value TYP: F

11. Hong Kong is the most entrepreneurial country, with 47.4 percent of individuals age 18 to 64 starting a new business.

ANS: F PTS: 1 DIF: 3 REF: 150
NAT: AACSB Analytic | Creation of Value TYP: F

12. Small businesses, according to the Small Business Administration, employ more than 90 percent of the private workforce in the United States and are responsible for 85 percent of all business innovations.

ANS: F PTS: 1 DIF: 3 REF: 151-152
NAT: AACSB Analytic | Creation of Value TYP: F

13. Entrepreneurship and small business in the United States is an engine for job creation and innovation.

ANS: T PTS: 1 DIF: 1 REF: 151
NAT: AACSB Analytic | Creation of Value TYP: F

14. Women and minorities who have found their opportunities limited in the corporate world are seeing intrapreneurship as the only way to go.

ANS: F PTS: 1 DIF: 2 REF: 153
NAT: AACSB Analytic | Individual Dynamics TYP: F

15. Immigrants are more likely to start small businesses than native-born Americans.

ANS: T PTS: 1 DIF: 1 REF: 152
NAT: AACSB Analytic | Creation of Value TYP: F

16. Entrepreneurs are in more control of their environment, generally speaking, and can be expected to have an external locus of control.

ANS: F PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Creation of Value TYP: F

17. People who have high achievement needs like to set their own goals, which are moderately difficult.

ANS: T PTS: 1 DIF: 2 REF: 155
NAT: AACSB Analytic | Creation of Value TYP: F

18. Every time Tina Faye does poorly on an exam and blames some outside factor, she can be described as having an external locus of control.

ANS: T PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: A

19. The psychological characteristic that allows a person to be untroubled by disorder and uncertainty is called tolerance for ambiguity.

ANS: T PTS: 1 DIF: 1 REF: 155
NAT: AACSB Analytic | Individual Dynamics TYP: F

20. A tolerance for ambiguity is a psychological characteristic that enables a person to accept the threat of competition and potential risk.

ANS: F PTS: 1 DIF: 2 REF: 155
NAT: AACSB Analytic | Individual Dynamics TYP: F

21. Entrepreneurs are able to deal easily with delays and exhibit high levels of patience, knowing that the results will be worth the wait.

ANS: F PTS: 1 DIF: 2 REF: 155
NAT: AACSB Analytic | Individual Dynamics TYP: F

22. Social entrepreneurs have a primary goal of improving society rather than maximizing profits.

ANS: T PTS: 1 DIF: 2 REF: 157
NAT: AACSB Analytic | Ethical Responsibilities TYP: F

23. Social entrepreneurship combines the creativity, business smarts, passion, and hard work of the traditional entrepreneur with a mission to change the world for the better.

ANS: T PTS: 1 DIF: 2 REF: 156
NAT: AACSB Analytic | Ethical Responsibilities TYP: F

24. A document specifying the business details prepared by an entrepreneur prior to opening a new business is known as a business plan.

ANS: T PTS: 1 DIF: 1 REF: 159
NAT: AACSB Analytic | Creation of Value TYP: F

25. Since a corporation is a legal structure reserved for large firms, small businesses have two basic choices for legal structure of their company: proprietorship and partnership.

ANS: F PTS: 1 DIF: 2 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

26. Forty-one percent of people start a business to fulfill a dream.

ANS: F PTS: 1 DIF: 3 REF: 159
NAT: AACSB Analytic | Creation of Value TYP: F

27. A proprietorship is an unincorporated business owned by two or more people.

ANS: F PTS: 1 DIF: 1 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

28. The drawbacks of proprietorship include unlimited liability and difficulty in obtaining financing.

ANS: T PTS: 1 DIF: 2 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

29. Two principle advantages of forming a corporation are continuity and limits on the owners’ liability.

ANS: T PTS: 1 DIF: 2 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

30. Borrowing money that has to be repaid at a later date in order to start a business is equity financing.

ANS: F PTS: 1 DIF: 2 REF: 163
NAT: AACSB Analytic | Creation of Value TYP: F

31. Borrowing from family and friends is a common source of debt financing for a start-up business.

ANS: T PTS: 1 DIF: 1 REF: 162
NAT: AACSB Analytic | Creation of Value TYP: F

32. Equity financing is when funds are invested in exchange for ownership in the company.

ANS: T PTS: 1 DIF: 1 REF: 163
NAT: AACSB Analytic | Creation of Value TYP: F

33. A venture capital firm is a group of companies or individuals that invests money in new or expanding businesses for ownership and potential profits.

ANS: T PTS: 1 DIF: 2 REF: 163
NAT: AACSB Analytic | Creation of Value TYP: F

34. A business opportunity that provides shared office space, shared secretarial assistance, management support services, and management advice to entrepreneurs is a franchise.

ANS: F PTS: 1 DIF: 1 REF: 164
NAT: AACSB Analytic | Creation of Value TYP: F

35. The advantage of buying an existing business is the ability to develop and design the business in the entrepreneur’s own way.

ANS: F PTS: 1 DIF: 1 REF: 164
NAT: AACSB Analytic | Creation of Value TYP: F

36. A business incubator is an independent company producing a product or service similar to that produced by the entrepreneur’s former employer.

ANS: F PTS: 1 DIF: 1 REF: 165
NAT: AACSB Analytic | Creation of Value TYP: F

37. An attractive innovation for entrepreneurs who want to start a business from scratch is to join a business incubator.

ANS: T PTS: 1 DIF: 2 REF: 165
NAT: AACSB Analytic | Creation of Value TYP: F

38. To succeed in the competitive online market, aspiring entrepreneurs need to identify a market niche that isn’t being served by other companies.

ANS: T PTS: 1 DIF: 1 REF: 167
NAT: AACSB Analytic | Creation of Value TYP: F

39. The first stage of growth for an entrepreneurial company is the investment stage.

ANS: F PTS: 1 DIF: 1 REF: 168
NAT: AACSB Analytic | Creation of Value TYP: F

40. The main problems are producing the product or service and obtaining customers in the survival stage of growth.

ANS: F PTS: 1 DIF: 2 REF: 168
NAT: AACSB Analytic | Creation of Value TYP: F

41. A domain name gives a company an address on the Web and a unique identity.

ANS: T PTS: 1 DIF: 1 REF: 167
NAT: AACSB Analytic | Creation of Value TYP: F

42. The takeoff stage is the last of the five stages of growth for an entrepreneurial company.

ANS: F PTS: 1 DIF: 2 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: F

43. In the start-up stage of an entrepreneurial business, formal planning tends to be nonexistent except for the business plan.

ANS: T PTS: 1 DIF: 2 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: F

44. At the success stage, the company’s substantial financial gains may come at the cost of losing its advantages of small size.

ANS: F PTS: 1 DIF: 1 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: F

45. At Stage 3 of growth for an entrepreneurial firm, managers often are hired to take over duties performed by the owner.

ANS: T PTS: 1 DIF: 2 REF: 170
NAT: AACSB Analytic | Creation of Value TYP: F

46. The owner should start implementing more structured control systems by Stage 3 of growth for an entrepreneurial firm.

ANS: T PTS: 1 DIF: 2 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: F

47. The failure rate for high-tech business is lower than the failure rate for conventional businesses.

ANS: F PTS: 1 DIF: 2 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

48. During turbulent times, small business formation is the primary process by which an economy recreates and reinvents itself.

ANS: T PTS: 1 DIF: 2 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

49. The economic recession of the late 2000s has had minimal effect on small businesses.

ANS: F PTS: 1 DIF: 2 REF: 151
NAT: AACSB Analytic | Environmental Influence TYP: F

50. Owning 40 percent of the private businesses in the United States, women create about 50 percent of the venture-backed technology start-ups.

ANS: F PTS: 1 DIF: 2 REF: 153
NAT: AACSB Analytic | Environmental Influence TYP: F

51. Minorities show a high rate of entrepreneurship in the United States, owning 5.8 million firms in 2007 that generated $1 trillion in revenues.

ANS: T PTS: 1 DIF: 2 REF: 153
NAT: AACSB Analytic | Creation of Value TYP: F

52. Particularly in a turbulent environment, the three most important traits of successful entrepreneurs are realism, flexibility, and passion.

ANS: T PTS: 1 DIF: 2 REF: 156
NAT: AACSB Analytic | Individual Dynamics TYP: F

53. Social entrepreneurs are leaders who are committed to both good business and ensuring high profitability.

ANS: F PTS: 1 DIF: 2 REF: 156
NAT: AACSB Analytic | Individual Dynamics TYP: F

54. The first step in pursuing an entrepreneurial dream is to come up with a viable idea.

ANS: T PTS: 1 DIF: 2 REF: 158
NAT: AACSB Analytic | Strategy TYP: F

55. The most common source of new business ideas comes from in-depth understanding of an industry or profession.

ANS: T PTS: 1 DIF: 2 REF: 159
NAT: AACSB Analytic | Strategy TYP: F

56. A business plan should be detailed, encompassing at least 100 pages.

ANS: F PTS: 1 DIF: 2 REF: 160
NAT: AACSB Analytic | Strategy TYP: F

57. Setting standards too high is a common pitfall for keeping a small business running successfully.

ANS: F PTS: 1 DIF: 2 REF: 161
NAT: AACSB Analytic | Strategy TYP: F

58. The Small Business Administration (SBA) can provide loan financing for small business start-up.

ANS: T PTS: 1 DIF: 2 REF: 162
NAT: AACSB Analytic | Creation of Value TYP: F

59. The sluggish economic market of the late 2000s has made the franchise real estate market a seller’s market.

ANS: F PTS: 1 DIF: 2 REF: 165
NAT: AACSB Analytic | Environmental Influence TYP: F

60. Professional Web sites should be easy to navigate and intuitive, and should avoid common mistakes such as typos, excessively large files, too much information, and sensory overload.

ANS: T PTS: 1 DIF: 1 REF: 167
NAT: AACSB Analytic | Information Technologies TYP: F

61. At the success stage of growth, a company’s substantial financial gains may come at the cost of losing its advantages of small size, including flexibility and the entrepreneurial spirit.

ANS: F PTS: 1 DIF: 2 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: F

MULTIPLE CHOICE

1. Which of the following is the process of starting a business venture, organizing the resources, and taking the risks?
a. Intrapreneurship
b. Entrepreneurship
c. Small business administration
d. Venture capital
e. Equity financing

ANS: B PTS: 1 DIF: 1 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

2. A(n) ____ is someone who recognizes a viable idea for a business product or service and carries it out.
a. intrapreneur
b. entrepreneur
c. manager
d. leader
e. introvert

ANS: B PTS: 1 DIF: 1 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

3. Being interested in computers, Jose Cohata came up with an idea of personalizing the screen saver programs with family pictures. After trying a couple of programs, Jose started marketing this service to neighbors and area businesses. Jose’s activities can be described as a(n)
a. entrepreneurship.
b. intrapreneurship.
c. useless idea.
d. large business.
e. partnership.

ANS: A PTS: 1 DIF: 2 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: A

4. An entrepreneur
a. assumes the risks of the business.
b. reaps the rewards of the business.
c. assumes the financial and legal risks of ownership.
d. recognizes a viable idea for a business product or service and carries it out.
e. all of these.

ANS: E PTS: 1 DIF: 1 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

5. Tracy’s Trikes believes that each employee should enjoy the idea of working on something that is new, creative, or personally meaningful. Tracy’s Trikes exemplifies which of the categories of small business owners?
a. Optimizers
b. Idealists
c. Hard workers
d. Sustainers
e. Jugglers

ANS: B PTS: 1 DIF: 2 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: A

6. If a small business owner enjoys the chance to balance work and personal life, he would be considered a(n)
a. idealist.
b. optimizer.
c. hard worker.
d. juggler.
e. sustainer.

ANS: E PTS: 1 DIF: 2 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

7. Which of the following are high-energy people who enjoy handling every detail of their own businesses?
a. Jugglers
b. Idealists
c. Sustainers
d. Optimizers
e. Hard workers

ANS: A PTS: 1 DIF: 2 REF: 149
NAT: AACSB Analytic | Creation of Value TYP: F

8. Small businesses represent ____ percent of all firms and employ about half of all private sector employees.
a. 86.3
b. 21.9
c. 99.7
d. 54.2
e. 72.8

ANS: C PTS: 1 DIF: 3 REF: 150
NAT: AACSB Analytic | Creation of Value TYP: F

9. Which of the following is the type of business that most entrepreneurs start?
a. Retail
b. Manufacturing
c. Service
d. All of these
e. Retail and manufacturing only

ANS: D PTS: 1 DIF: 2 REF: 151
NAT: AACSB Analytic | Creation of Value TYP: F

10. According to the Small Business Administration, which of these defines a small business?
a. It has fewer than 500 employees.
b. It has sales less than $5 million a year.
c. It has fewer than $100 million in assets.
d. The SBA’s definition of small business is one that is independently owned and operated and not dominant in its field of action.
e. It has fewer than 50 employees and $1 million in sales.

ANS: D PTS: 1 DIF: 2 REF: 150
NAT: AACSB Analytic | Creation of Value TYP: F

11. Today, inspired by the growth of companies such as Amazon.com, entrepreneurs are flocking to the ____ to start new businesses.
a. Small Business Administration
b. Internet
c. bookstore
d. mall
e. Internal Revenue Service

ANS: B PTS: 1 DIF: 1 REF: 151
NAT: AACSB Analytic | Creation of Value TYP: F

12. Small firms that file for patents typically produce ____ more patents per employee than large patenting firms.
a. twice
b. 3 to 4 times
c. 6 to 7 times
d. 9 to 10 times
e. 13 to 14 times

ANS: E PTS: 1 DIF: 3 REF: 152
NAT: AACSB Analytic | Creation of Value TYP: F

13. Which of the following demographic factors distinguish entrepreneurs from others?
a. They are likely the youngest child in their family.
b. Most entrepreneurs launch their businesses between the ages of 35 and 55.
c. Their parents likely worked for large companies.
d. They are likely the children of immigrants.
e. All of these.

ANS: D PTS: 1 DIF: 2 REF: 152
NAT: AACSB Analytic | Individual Dynamics TYP: F

14. In the United States, minorities own ____ firms.
a. 5.8 million
b. 1.3 billion
c. 872,000
d. 8.9 million
e. 2.9 million

ANS: A PTS: 1 DIF: 3 REF: 153
NAT: AACSB Analytic | Creation of Value TYP: F

15. ____ refers to the belief by individuals that their future is within their control and that external forces will have little influence.
a. Awareness of passing time
b. Tolerance for ambiguity
c. Internal locus of control
d. External locus of control
e. Deferred locus of control

ANS: C PTS: 1 DIF: 1 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: F

16. Lauren Dean strongly believes in her abilities and feels that she controls her own destiny. She can be described as having a(n)
a. tolerance for ambiguity.
b. internal locus of control.
c. external locus of control.
d. low energy level.
e. awareness of passing time.

ANS: B PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: A

17. Which of these characteristics is associated with entrepreneurship?
a. A high need for power
b. A high need for affiliation
c. An internal locus of control
d. An external locus of control
e. Low energy level

ANS: C PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: F

18. The belief by individuals that their future is not within their control, but rather is influenced by some external force is considered
a. an external locus of control.
b. an internal locus of control.
c. a result of a need to achieve.
d. a tolerance for ambiguity.
e. a result of a boost of self-confidence.

ANS: A PTS: 1 DIF: 1 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: F

19. Which of the following is the belief by individuals that their future is not within their control but rather is influenced by external forces?
a. Awareness of passing time
b. Tolerance for ambiguity
c. Internal locus of control
d. External locus of control
e. Deferred locus of control

ANS: D PTS: 1 DIF: 1 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: F

20. All of these are entrepreneurial characteristics EXCEPT
a. self-confidence.
b. tolerance for ambiguity.
c. external locus of control.
d. high energy level.
e. awareness of passing time.

ANS: C PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: F

21. Which of these means that people are motivated to excel and pick situations in which success is likely?
a. External locus of control
b. Tolerance for Ambiguity
c. Awareness of passing time
d. Internal locus of control
e. Need to achieve

ANS: E PTS: 1 DIF: 1 REF: 155
NAT: AACSB Analytic | Individual Dynamics TYP: F

22. Ami believes that such things as luck or chance will determine her future success. Ami has
a. an internal locus of control.
b. a high need for achievement.
c. a tolerance for ambiguity.
d. an external locus of control.
e. high level of self-confidence.

ANS: D PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: A

23. Ginger likes to set her own goals, which have an intermediate level of difficulty. Which of the entrepreneurial characteristics does she probably possess?
a. A high need for achievement
b. A high need for power
c. An external locus of control
d. An inability to deal with uncertainty
e. Intolerance for ambiguity

ANS: A PTS: 1 DIF: 2 REF: 155
NAT: AACSB Analytic | Individual Dynamics TYP: A

24. Melissa is a very good middle manager. However, she has long wanted to open her own business. Which of Melissa’s characteristics is not consistent with entrepreneurship?
a. Taryn has high self-confidence.
b. Taryn tends to put things off till later.
c. She is untroubled by uncertainty.
d. She has a high energy level.
e. She has high need to achieve.

ANS: B PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: A

25. Which of the following is the psychological characteristic that allows a person to be untroubled by disorder and uncertainty?
a. Tolerance for ambiguity
b. External locus of control
c. Need to achieve
d. Awareness of passing time
e. Internal locus of control

ANS: A PTS: 1 DIF: 1 REF: 155
NAT: AACSB Analytic | Individual Dynamics TYP: F

26. Entrepreneurs tend to
a. need clear instructions.
b. like specific instructions.
c. be impatient.
d. lack self-confidence.
e. have low energy level.

ANS: C PTS: 1 DIF: 2 REF: 155
NAT: AACSB Analytic | Individual Dynamics TYP: F

27. What is the primary goal of the social entrepreneur?
a. maximizing profits
b. improving society
c. reaching social circles
d. finding funding
e. writing grants

ANS: B PTS: 1 DIF: 2 REF: 157
NAT: AACSB Analytic | Ethical Responsibilities TYP: F

28. ____ combines creativity, business smarts, passion, and hard work of the traditional entrepreneur with a mission to change the world for better.
a. Contemporary entrepreneurship
b. Traditional entrepreneurship
c. Modern-day entrepreneurship
d. Social entrepreneurship
e. Conventional entrepreneurship

ANS: D PTS: 1 DIF: 2 REF: 156
NAT: AACSB Analytic | Creation of Value TYP: F

29. One of the first characteristics or points of a successful business plan is
a. a profile of potential customers and market needs.
b. demonstrate a clear, compelling vision that creates an air of excitement.
c. the key ingredient of the business that will attract million of customers.
d. the entrepreneur’s background and role in the company.
e. essential information about funding received so far.

ANS: B PTS: 1 DIF: 2 REF: 159
NAT: AACSB Analytic | Individual Dynamics TYP: F

30. Which of the following is the most cited source of new business ideas?
a. Brainstorming
b. In-depth understanding of industry/profession
c. A hobby
d. Copying someone else
e. None of these

ANS: B PTS: 1 DIF: 2 REF: 159
NAT: AACSB Analytic | Creation of Value TYP: F

31. Before opening his own business, Kareem was writing a report that details the specifics of his ideas and future business operations. This document is known as
a. a SWOT analysis.
b. a business portfolio.
c. a business plan.
d. a competitive analysis.
e. a mission statement.

ANS: C PTS: 1 DIF: 2 REF: 159
NAT: AACSB Analytic | Creation of Value TYP: A

32. Which of these refers to an unincorporated business owned by an individual for profit?
a. Partnership
b. Sole proprietorship
c. Corporation
d. Association
e. Trade alliance

ANS: B PTS: 1 DIF: 2 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

33. Which of the following is NOT an appropriate legal structure for an entrepreneurial company?
a. Proprietorship
b. Corporation
c. Partnership
d. Trade alliance
e. All of these are appropriate legal structures for an entrepreneurial company.

ANS: D PTS: 1 DIF: 1 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

34. Which of the following is a popular small business form because it is easy to start and has few legal requirements?
a. A partnership
b. A proprietorship
c. A corporation
d. An association
e. A trade alliance

ANS: B PTS: 1 DIF: 1 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

35. Vaughn Hager started his one-man consulting business under the name Hager Associates. The legal structure for the company can best be described as a(n)
a. proprietorship.
b. partnership.
c. trade alliance.
d. corporation.
e. one man operation.

ANS: A PTS: 1 DIF: 2 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: A

36. A(n) ____ has a legal life of its own.
a. partnership
b. proprietorship
c. corporation
d. association
e. trade alliance

ANS: C PTS: 1 DIF: 1 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

37. The drawback(s) of proprietorship include
a. the unlimited liability of the partners.
b. conflicts with partners.
c. existence regardless of whether the owners live or dies.
d. difficulty in obtaining financing.
e. complexity and cost.

ANS: D PTS: 1 DIF: 1 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

38. Blake, Madison and Sean started selling computer software on college campuses under the name Student Software Company. Each person contributed $1500 toward start-up costs and agreed on dividing costs and profits equally. The legal structure for the company can best be described as a
a. proprietorship.
b. partnership.
c. trade alliance.
d. corporation.
e. None of these.

ANS: B PTS: 1 DIF: 2 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: A

39. Which of the following is an unincorporated business owned by two or more?
a. A partnership
b. A proprietorship
c. A corporation
d. An association
e. A trade alliance

ANS: A PTS: 1 DIF: 1 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

40. An artificial entity created by the state and existing apart from its owners is known as
a. a partnership.
b. a proprietorship.
c. a corporation.
d. an association.
e. a trade alliance.

ANS: C PTS: 1 DIF: 1 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

41. What are the two principal advantages of forming a corporation?
a. Unlimited liability and potential conflicts with partners
b. Freedom from debt and relatively simple structure
c. Continuity and limits on owner’s liability
d. Unlimited liability and continuity
e. Continuity and non-tax structure

ANS: C PTS: 1 DIF: 1 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

42. ____ refers to borrowing money that has to be repaid in order to start a business.
a. Venture capital
b. Debt financing
c. Equity financing
d. Franchising
e. Licensing

ANS: B PTS: 1 DIF: 1 REF: 162
NAT: AACSB Analytic | Creation of Value TYP: F

43. A group of companies or individuals that invests money in new or expanding businesses for ownership and potential profits is known as
a. an equity financing firm.
b. franchising.
c. a venture capital firm.
d. a corporation.
e. a trade alliance.

ANS: C PTS: 1 DIF: 1 REF: 163
NAT: AACSB Analytic | Creation of Value TYP: F

44. A venture capital firm wants to invest in businesses with a high rate of return. In return, they will
a. invest large amounts of money.
b. provide necessary assistance and advice.
c. provide information to help the entrepreneur prosper.
d. all of these.
e. provide necessary assistance and advice and provide information to help the entrepreneur prosper only.

ANS: D PTS: 1 DIF: 2 REF: 163
NAT: AACSB Analytic | Creation of Value TYP: F

45. Which of these refers to the financing that consists of funds that are invested in exchange for ownership in the company?
a. Venture-debt
b. Debt financing
c. Equity financing
d. Franchising
e. Licensing

ANS: C PTS: 1 DIF: 1 REF: 163
NAT: AACSB Analytic | Creation of Value TYP: F

46. Which of these offers the advantage that the entrepreneur has the ability to develop and design the business in the entrepreneur’s own way?
a. Participate in a business incubator
b. Start a new business
c. Buy a franchise
d. Buy an existing business
e. All of these

ANS: B PTS: 1 DIF: 2 REF: 164
NAT: AACSB Analytic | Creation of Value TYP: F

47. An advantage of which of these tactics is that there is a shorter start-up time and an existing track record?
a. Participate in a business incubator
b. Start a new business
c. Buy a franchise
d. Buy an existing business
e. Debt financing

ANS: D PTS: 1 DIF: 2 REF: 164
NAT: AACSB Analytic | Creation of Value TYP: F

48. ____ refers to an arrangement by which the owner of a product or service allows others to purchase the right to distribute the product or service with help from the owner.
a. Franchising
b. Business incubation
c. Spinning-off
d. Globalization
e. Right offerings

ANS: A PTS: 1 DIF: 2 REF: 164
NAT: AACSB Analytic | Creation of Value TYP: F

49. Which of these is true about the business incubator?
a. It gives up control since every business is run the same way.
b. It provides shared office space, management support services, and management advice.
c. It develops an international business.
d. It provides an established name and advertising.
e. All of these.

ANS: B PTS: 1 DIF: 2 REF: 165
NAT: AACSB Analytic | Creation of Value TYP: F

50. ____ was one of the top 10 fastest-growing franchises in 2008.
a. Arby’s
b. Krispy Kreme
c. Subway
d. Wendy’s
e. Dairy Queen

ANS: C PTS: 1 DIF: 2 REF: 165
NAT: AACSB Analytic | Creation of Value TYP: F

51. The majority of the incubators are operated by
a. large corporations.
b. non-profit organizations.
c. small businesses.
d. international businesses.
e. college drop-outs.

ANS: B PTS: 1 DIF: 2 REF: 166
NAT: AACSB Analytic | Creation of Value TYP: F

52. Entrepreneurs who aspire to start online businesses implement all the following steps EXCEPT:
a. create a professional Web site.
b. choose a domain name.
c. build online relationships
d. determine physical location.
e. identify a profitable market niche.

ANS: D PTS: 1 DIF: 1 REF: 167
NAT: AACSB Analytic | Creation of Value TYP: F

53. Managers must tailor their planning, organizing, leading, and controlling to fit
a. the current stage of growth.
b. financial needs.
c. inventory levels.
d. the number of orders to be filled.
e. their comfort level.

ANS: A PTS: 1 DIF: 2 REF: 168
NAT: AACSB Analytic | Creation of Value TYP: F

54. Marion is an entrepreneur. At this stage of his company’s growth, his main concerns are do we have enough customers and money. What stage of growth is Marion’s company in?
a. Start-up
b. Survival
c. Takeoff
d. Resource maturity
e. Success

ANS: A PTS: 1 DIF: 2 REF: 168
NAT: AACSB Analytic | Creation of Value TYP: A

55. Samuel Rohrer is providing consumers with a new, unique business. The stage of the growth where his business has demonstrated that it is a workable business entity is considered the
a. start-up stage.
b. survival stage.
c. success stage.
d. takeoff stage.
e. resource maturity stage.

ANS: B PTS: 1 DIF: 2 REF: 168
NAT: AACSB Analytic | Creation of Value TYP: A

56. At which stage of growth is the company if it is solidly based and profitable?
a. Resource maturity
b. Takeoff
c. Survival
d. Success
e. Existence

ANS: D PTS: 1 DIF: 1 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: F

57. Janelle is very innovative and attentive to detail. As she starts her own company, she leads her employees and ensures that every detail is attended to. As her company grows, she finds it more difficult to deal with and motivate her employees. She is more interested in the product. What stage of growth is Janelle’s company going through?
a. Resource maturity
b. Takeoff
c. Survival
d. Success
e. Existence

ANS: D PTS: 1 DIF: 2 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: A

58. Formal planning, such as a strategic plan, is usually instituted during which stage?
a. Start-up
b. Survival
c. Takeoff
d. Success
e. Resource maturity

ANS: D PTS: 1 DIF: 2 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: F

59. The key problem, at the ____ stage of growth, is how to grow rapidly and finance that growth.
a. existence
b. survival
c. takeoff
d. resource maturity
e. success

ANS: C PTS: 1 DIF: 1 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: F

60. ABC company has made substantial financial gains, but may start to lose the advantages of small size. Which stage of growth is this company experiencing?
a. Resource maturity
b. Takeoff
c. Survival
d. Success
e. Existence

ANS: A PTS: 1 DIF: 1 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: A

61. The Swingset Company is at the stage where if financing is available and it is properly managed, rapid growth can occur. What stage is the Swingset Company experiencing?
a. Resource maturity
b. Takeoff
c. Survival
d. Success
e. Start-up

ANS: B PTS: 1 DIF: 2 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: A

62. During the latter stages of entrepreneurial growth, the manager
a. must learn to delegate and decentralize authority.
b. must institute greater use of rules and procedures.
c. must hire sufficient management to handle the growth.
d. all of these.
e. none of these.

ANS: D PTS: 1 DIF: 2 REF: 170
NAT: AACSB Analytic | Creation of Value TYP: F

63. The ____ is the driving force during the early stages of development of a business.
a. financial support
b. leader’s vision
c. leader’s personality
d. competitive threat
e. government pressure

ANS: B PTS: 1 DIF: 2 REF: 170
NAT: AACSB Analytic | Creation of Value TYP: F

64. During the ____ stage, the company will need to make greater use of budgets, standard cost systems, and statistical reports.
a. existence
b. survival
c. takeoff
d. success
e. maturity

ANS: C PTS: 1 DIF: 2 REF: 170
NAT: AACSB Analytic | Creation of Value TYP: F

65. Alfred is interested in opening his own business, so he pays a visit to the local Small Business Administration (SBA) to learn more about the potential risks. He learns that about _____ percent of all small businesses fail within two years of opening.
a. 10
b. 20
c. 30
d. 50
e. 70

ANS: C PTS: 1 DIF: 3 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: A

66. Connie, a single mother and home-business entrepreneur, enjoys running her own business. However, because she is busy balancing work and family, she does not foresee her home business growing significantly in the near future. Connie can best be described as what type of entrepreneur?
a. Idealist
b. Sustainer
c. Optimizer
d. Juggler
e. Hard worker

ANS: B PTS: 1 DIF: 3 REF: 148
NAT: AACSB Analytic | Individual Dynamics TYP: A

67. In 2008, which country had the largest percentage of individuals age 18 to 64 that were active in starting or managing a business?
a. Bolivia
b. Peru
c. Columbia
d. Angola
e. Dominican Republic

ANS: A PTS: 1 DIF: 3 REF: 150
NAT: AACSB Analytic | Environmental Influence TYP: F

68. The Small Business Association (SBA) reports that small businesses create at least _______ percent of America’s new jobs.
a. 30
b. 32
c. 46
d. 64
e. 82

ANS: D PTS: 1 DIF: 3 REF: 151
NAT: AACSB Analytic | Creation of Value TYP: F

69. What percentage of women entrepreneurs have employees?
a. Five
b. Ten
c. Twenty
d. Fifty
e. Eighty

ANS: C PTS: 1 DIF: 2 REF: 153
NAT: AACSB Analytic | Creation of Value TYP: F

70. Celine has an unwavering belief in her new start-up company. She possesses intense focus and takes unconventional risks to make her new company successful. These examples most closely relate to which personality trait of entrepreneurs?
a. Need to achieve
b. Patience
c. Tolerance for ambiguity
d. High energy level
e. Self-confidence

ANS: D PTS: 1 DIF: 3 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: A

71. Andrew, a young entrepreneur, feels sure about his ability to win customers through his people skills. He is comfortable with his ability to handle technical details and feels that he is able to keep his business moving. This most closely relates to which personality trait of entrepreneurs?
a. Need to achieve
b. Impatience
c. Tolerance for ambiguity
d. High energy level
e. Self-confidence

ANS: E PTS: 1 DIF: 3 REF: 155
NAT: AACSB Analytic | Individual Dynamics TYP: A

72. Social entrepreneurs are committed to both good business and:
a. Swaying political opinion of consumers
b. Improving the natural environment
c. Positive social change
d. Non-profit goals
e. Big profits

ANS: C PTS: 1 DIF: 2 REF: 156
NAT: AACSB Analytic | Environmental Influence TYP: F

73. Jamila is a successful artist and entrepreneur who makes all of her work out of recycled goods because she believes in sustainability. She can be described as a social entrepreneur that is committed to:
a. International human rights
b. Environmental protection
c. Children’s rights
d. Industrial protectionism
e. Consumerism

ANS: B PTS: 1 DIF: 3 REF: 157
NAT: AACSB Analytic | Environmental Influence TYP: A

74. The most common reason for becoming an entrepreneur is:
a. Joining the family business
b. To control one’s future
c. To be one’s own boss
d. To fulfill a dream
e. The result of being laid off

ANS: A PTS: 1 DIF: 2 REF: 159
NAT: AACSB Analytic | Individual Dynamics TYP: F

75. All of the following are common reasons why small business ventures fail EXCEPT:
a. Sloppy accounting
b. Naive hiring
c. Lack of controls
d. Long-term focus
e. Unrealistic focus

ANS: D PTS: 1 DIF: 2 REF: 161
NAT: AACSB Analytic | Strategy TYP: F

76. What is the most common way that entrepreneurs finance the start-up of a new business?
a. Self-financing from savings or credit cards
b. Loans from friends, family, or business associates
c. Bank loans
d. Lines of credit
e. Venture capital

ANS: A PTS: 1 DIF: 2 REF: 162
NAT: AACSB Analytic | Creation of Value TYP: F

77. Wendy enjoys making crafts and giving these away as gifts to friends and family. One day, she decided to quit her job and make crafts full-time, selling them on her new company Web site. Which tactic of becoming a business owner did Wendy use?
a. Equity financing
b. New business start-up
c. Buying an existing business
d. Buying a franchise
e. Merger and acquisition

ANS: B PTS: 1 DIF: 3 REF: 164
NAT: AACSB Analytic | Strategy TYP: A

78. Max is the Web site manager for a local florist. The company’s owner would like Max to redesign the Web site so that customers can connect directly with florist employees on a daily basis about products and specials. This relates to which step in establishing an online business?
a. Finding a niche market
b. Creating a professional Web site
c. Choosing a target market
d. Choosing a domain name
e. Building online relationships

ANS: E PTS: 1 DIF: 3 REF: 167
NAT: AACSB Analytic | Information Technologies TYP: A

79. Dawn, the finance manager of a sporting goods manufacturing company, uses accounting records to track monthly operational budgets to ensure that the company’s financial targets are being met. This is an important task in which stage of the managerial process?
a. Delegating
b. Planning
c. Controlling
d. Leading
e. Organizing

ANS: C PTS: 1 DIF: 3 REF: 170
NAT: AACSB Analytic | Strategy TYP: A

CASE

Scenario – Holly and Trent

While many others dreamed about owning their own business, Holly Gabrel decided to do something about it. Holly knew that being self-employed required long hours and hard work, but with the help of her husband, Trent, Holly was positive that the hours and the work would be rewarded. First, she and Trent developed a new concept in sunglasses that could be used by athletes better than the sunglasses now on the market. Holly and Trent obtained a patent on their invention, and began production and marketing.

1. With the entrepreneurial personality, Holly can be expected to have all of the following traits EXCEPT
a. internal locus of control.
b. tolerance for ambiguity.
c. high need to achieve.
d. patience.
e. all of these.

ANS: d

PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Individual Dynamics KEY: Scenario Questions
TYP: A

2. After fully developing their new business idea, Holly and Trent recognize the need to develop a business plan. Typical business plans will include all of the following, EXCEPT
a. mission or vision of the company.
b. information about the suppliers.
c. policy for extending credit to customers.
d. analysis of critical risks that threaten success.
e. all of these should be included.

ANS: e

PTS: 1 DIF: 2 REF: 159-160
NAT: AACSB Analytic | Creation of Value KEY: Scenario Questions
TYP: A

3. If the business is legally Holly’s, then the business form would be
a. proprietorship.
b. partnership.
c. corporation.
d. chapter S42.5.
e. None of these.

ANS: a

PTS: 1 DIF: 2 REF: 160
NAT: AACSB Analytic | Creation of Value KEY: Scenario Questions
TYP: A

COMPLETION

1. Entrepreneurs in the ____________________ category like the idea of working on something that is new, creative, or personally meaningful.

ANS: idealist

PTS: 1 DIF: 2 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

2. The process of initiating a business venture, organizing it, and assuming its risks is known as ____________________.

ANS: entrepreneurship

PTS: 1 DIF: 2 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

3. A(n) ____________________ recognizes a viable idea for a business product or service and carries it out.

ANS: entrepreneur

PTS: 1 DIF: 2 REF: 148
NAT: AACSB Analytic | Creation of Value TYP: F

4. Entrepreneurship and small business in the United States is an engine for ____________________ and ____________________.

ANS:
job creation; innovation
innovation; job creation

PTS: 1 DIF: 2 REF: 151
NAT: AACSB Analytic | Creation of Value TYP: F

5. In the next decade, ____________________ and ____________________ businesses could end up being the emerging growth companies.

ANS:
women-owned; minority-owned
minority-owned; women-owned

PTS: 1 DIF: 2 REF: 153
NAT: AACSB Analytic | Creation of Value TYP: F

6. A(n) ____________________ locus of control is the belief by individuals that their future is within their control.

ANS: internal

PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Creation of Value TYP: F

7. A(n) ____________________ locus of control is the belief by individuals that their future is not within their control but rather is influenced by external forces.

ANS: external

PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: F

8. A human quality linked to entrepreneurship in which people are motivated to excel and pick situations in which success is likely is called the ____________________.

ANS: need to achieve

PTS: 1 DIF: 2 REF: 155
NAT: AACSB Analytic | Individual Dynamics TYP: F

9. ____________________ entrepreneurs are committed to both good business and changing the world for the better.

ANS: Social

PTS: 1 DIF: 2 REF: 156
NAT: AACSB Analytic | Creation of Value TYP: F

10. ____________________ is the psychological characteristic that allows a person to be untroubled by disorder and uncertainty.

ANS: Tolerance for ambiguity

PTS: 1 DIF: 2 REF: 155
NAT: AACSB Analytic | Individual Dynamics TYP: F

11. A(n) ____________________ is a document specifying the business details prepared by an entrepreneur in preparation for opening a new business.

ANS: business plan

PTS: 1 DIF: 2 REF: 159
NAT: AACSB Analytic | Individual Dynamics TYP: F

12. An unincorporated business owned by an individual for profit is known as a(n) ____________________.

ANS: sole proprietorship

PTS: 1 DIF: 1 REF: 160
NAT: AACSB Analytic | Individual Dynamics TYP: F

13. A(n) ____________________ is an unincorporated business owned by two or more people.

ANS: partnership

PTS: 1 DIF: 1 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

14. A(n) ____________________ is an artificial entity created by the state and existing apart from its owners.

ANS: corporation

PTS: 1 DIF: 1 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

15. Borrowing money that has to be repaid at a later date in order to start a business is ____________________.

ANS: debt financing

PTS: 1 DIF: 1 REF: 162
NAT: AACSB Analytic | Creation of Value TYP: F

16. ____________________ financing consists of funds that are invested in exchange for ownership in the company.

ANS: Equity

PTS: 1 DIF: 1 REF: 163
NAT: AACSB Analytic | Creation of Value TYP: F

17. A(n) ____________________ is a group of companies or individuals that invests money in new or expanding businesses for ownership and potential profits.

ANS: venture capital firm

PTS: 1 DIF: 1 REF: 163
NAT: AACSB Analytic | Creation of Value TYP: F

18. ____________________ firms are groups of companies or individuals that invest money in exchange for a stake in the company.

ANS: Venture capitalist

PTS: 1 DIF: 2 REF: 163
NAT: AACSB Analytic | Creation of Value TYP: F

19. By ____________________, an entrepreneur has the advantage to develop and design the business in his/her own way.

ANS: starting a business

PTS: 1 DIF: 2 REF: 164
NAT: AACSB Analytic | Creation of Value TYP: F

20. ____________________ is an arrangement by which the owner of a product or service allows others to purchase the right to distribute the product or service with help from the owner.

ANS: Franchising

PTS: 1 DIF: 2 REF: 164
NAT: AACSB Analytic | Creation of Value TYP: F

21. The ____________________ provides shared office space, management support services, and management advice to entrepreneurs.

ANS: business incubator

PTS: 1 DIF: 2 REF: 165
NAT: AACSB Analytic | Creation of Value TYP: F

22. The majority of the incubators are operated by ____________________.

ANS: non-profit organizations

PTS: 1 DIF: 2 REF: 166
NAT: AACSB Analytic | Creation of Value TYP: F

23. In the ____________________ stage, the main problems for entrepreneurial firms are producing the product or service and obtaining customers.

ANS: start-up

PTS: 1 DIF: 2 REF: 168
NAT: AACSB Analytic | Creation of Value TYP: F

24. The key problem, at the ____________________ stage of growth, is how to grow rapidly and finance that growth.

ANS: takeoff

PTS: 1 DIF: 1 REF: 169
NAT: AACSB Analytic | Creation of Value TYP: F

SHORT ANSWER

1. List five of the six characteristics of entrepreneurs.

ANS:
Internal locus of control, high energy level, need to achieve, tolerance for ambiguity, awareness of passing time, and self-confidence.

PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Creation of Value TYP: F

2. Name three of the four ways entrepreneurs can become business owners.

ANS:
(1) Start from scratch, (2) buy an existing business, (3) start a franchise, and (4) participate in a business incubator.

PTS: 1 DIF: 2 REF: 164-165
NAT: AACSB Analytic | Creation of Value TYP: F

3. List the five stages of growth for an entrepreneurial company.

ANS:
Start-up, survival, success, takeoff, and resource maturity.

PTS: 1 DIF: 2 REF: 155
NAT: AACSB Analytic | Creation of Value TYP: F

ESSAY

1. Name and describe the five different categories of small business owners.

ANS:
The five categories are idealists, optimizers, sustainers, hard workers, and jugglers. Idealists like the idea of working on something that is new, creative, or personally meaningful, while optimizers are rewarded by the personal satisfaction of being a business owner. Balancing work and personal life and often not wanting the business to expand describes a sustainer. A hard worker is just the opposite of a sustainer. Hard workers enjoy putting in long hours and dedication to build a larger business with more profits. The last category, jugglers, includes high-energy people who thrive on the pressure of paying bills, meeting deadlines, and making payroll.

PTS: 1 DIF: 2 REF: 148-149
NAT: AACSB Analytic | Creation of Value TYP: F

2. Briefly define and compare internal and external locus of control.

ANS:
Internal locus of control is the belief by individuals that their future is within their control and that external influences will have little influence. External locus of control is the belief by individuals that their future is not within their control but instead is influenced by external factors. Internal locus of control leads to a greater willingness to put forth effort and succeed.

PTS: 1 DIF: 2 REF: 154
NAT: AACSB Analytic | Individual Dynamics TYP: F

3. What is tolerance for ambiguity? Why is it an important trait?

ANS:
Tolerance for ambiguity is the psychological characteristic that allows a person to be untroubled by disorder and uncertainty. It is important for a small business owner because few situations present more uncertainty than starting a new business. Also, many decisions that new business starters have to make are made without clear understanding of options or certainty about which option will succeed.

PTS: 1 DIF: 2 REF: 155
NAT: AACSB Analytic | Individual Dynamics TYP: F

4. Name five of the ten characteristics of a successful business plan.

ANS:
Students can name any five of the following characteristics: (1) demonstrate a clear, compelling vision that creates an air of excitement, (2) provide clear and realistic financial projections, (3) give detailed information about the target market, (4) include detailed information about the industry and competitors, (5) provide evidence of an effective entrepreneurial management team, (6) pay attention to good formatting and clear writing, (7) keep the plan short-no more than 50 pages, (8) highlight critical risks that may threaten business success, (9) spell out the sources and uses of start-up funds and operating funds, and (10) capture the reader’s interest with a killer summary.

PTS: 1 DIF: 2 REF: 159-160
NAT: AACSB Analytic | Creation of Value TYP: F

5. Define a corporation and briefly discuss the primary advantages and disadvantages of forming a corporation.

ANS:
A corporation is a business form that is an artificial entity created by the state and existing apart from its owners. Two principal advantages are (1) the continuity of the business because it has a legal life of its own, and (2) the limits on the owners’ liability. The major disadvantages of the corporation are (1) the cost and complexity of the paperwork required to incorporate the business, and (2) the cost and complexity of the records required by the law.

PTS: 1 DIF: 2 REF: 160
NAT: AACSB Analytic | Creation of Value TYP: F

6. What is the fundamental difference between the suppliers of debt and equity financing?

ANS:
Suppliers of debt financing will have their money repaid to them, with interest added for the use of the money. Suppliers of equity financing provide funds that are invested into the company in exchange for ownership in the company. Debt financing creates a loan while equity financing creates ownership.

PTS: 1 DIF: 1 REF: 162-163
NAT: AACSB Analytic | Creation of Value TYP: F

7. What is a business incubator? How can it help a business?

ANS:
A business incubator is an innovation that provides shared office space, management support services, and management advice to entrepreneurs. It can help a business because by sharing office space with other entrepreneurs, managers share information about local business, financial aid, and market opportunities.

PTS: 1 DIF: 2 REF: 165
NAT: AACSB Analytic | Creation of Value TYP: F

8. List and briefly describe the stages of growth for an entrepreneurial company.

ANS:
The first stage is the start-up stage. During this stage, the main problems are producing the product or service and obtaining customers. The survival stage is the second stage. The organization is producing the product/service and has customers. The key issue is financing the operation and its growth. During the success stage (stage 3), the company is solid and profitable. At this point, the entrepreneur can decide to decrease his or her involvement. The fourth stage is the takeoff stage. It is a pivotal period for the organization. The key issue is how to grow rapidly and finance that growth. Additionally, during this stage, the entrepreneur must learn to delegate. The final stage is the resource maturity stage. During this stage, the company has made significant financial gains, but is in the process of transitioning to a large organization.

PTS: 1 DIF: 3 REF: 168
NAT: AACSB Analytic | Creation of Value TYP: F
Chapter 7—Managerial Planning and Goal Setting

TRUE/FALSE

1. Because everything else stems from leading, of the four management functions, leading is considered the most fundamental.

ANS: PTS: 1 DIF: 2 REF: 178
NAT: AACSB Analytic | Leadership Principles TYP: F

2. Managers must understand no plan is perfect, but should grow and change to meet new conditions.

ANS: PTS: 1 DIF: 2 REF: 178
NAT: AACSB Analytic | Leadership Principles TYP: F

3. A desired future state that the individual or organization attempts to realize is a goal.

ANS: PTS: 1 DIF: 1 REF: 178
NAT: AACSB Analytic | Strategy TYP: F

4. Goals specify today’s means; plans specify future ends.

ANS: PTS: 1 DIF: 2 REF: 178
NAT: AACSB Analytic | Strategy TYP: F

5. Goal setting is the act of determining the organization goals and the means for achieving them.

ANS: PTS: 1 DIF: 1 REF: 178
NAT: AACSB Analytic | Strategy TYP: F

6. The mission is the basis for the strategic level of goals and plans, which in turn shapes the tactical and operational level.

ANS: PTS: 1 DIF: 1 REF: 179
NAT: AACSB Analytic | Strategy TYP: F

7. Tactical goals and plans are the responsibility of front-line managers and supervisors.

ANS: PTS: 1 DIF: 1 REF: 179
NAT: AACSB Analytic | Strategy TYP: F

8. Tactical goals and plans are the responsibility of middle managers.

ANS: PTS: 1 DIF: 1 REF: 179
NAT: AACSB Analytic | Strategy TYP: F

9. A broad definition of the organization’s values, aspiration and reason for being, along with a recognition of the scope and operations that distinguishes the organization refers to a Business Strategic Statement.

ANS: PTS: 1 DIF: 2 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

10. A plan tells “why” to achieve the goal.

ANS: PTS: 1 DIF: 2 REF: 178
NAT: AACSB Analytic | Strategy TYP: F

11. Goals help managers decide where they need to allocate resources.

ANS: PTS: 1 DIF: 1 REF: 190
NAT: AACSB Analytic | Leadership Principles TYP: F

12. Goals and plans provide a sense of direction and focus on specific targets and direct employee efforts toward important outcomes.

ANS: PTS: 1 DIF: 2 REF: 190
NAT: AACSB Analytic | Leadership Principles TYP: F

13. Step 1 in Management by Objectives is to review progress

ANS: PTS: 1 DIF: 1 REF: 187
NAT: AACSB Analytic | Operations Management TYP: F

14. Plans provide a standard of assessment.

ANS: PTS: 1 DIF: 2 REF: 190
NAT: AACSB Analytic | Strategy TYP: F

15. In step 1 of Management By Objectives, overall performance is appraised

ANS: PTS: 1 DIF: 2 REF: 187
NAT: AACSB Analytic | Operations Management TYP: F

16. An organization’s mission describes its reason for existence.

ANS: PTS: 1 DIF: 2 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

17. Strategic plans and goals are those that focus on where the organization wants to be in the future and pertain to the organization as a whole.

ANS: PTS: 1 DIF: 1 REF: 182
NAT: AACSB Analytic | Strategy TYP: F

18. A broad statement of where the organization wants to be in the future refers to a mission statement.

ANS: PTS: 1 DIF: 1 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

19. Operational plans and goals are those that focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals.

ANS: PTS: 1 DIF: 2 REF: 184
NAT: AACSB Analytic | Strategy TYP: F

20. Tactical plans are designed to help execute the major strategic plans and to accomplish a specific part of the company’s strategy.

ANS: PTS: 1 DIF: 2 REF: 183
NAT: AACSB Analytic | Operations Management TYP: F

21. Tactical goals are specific, measurable results expected from departments, work groups, and individuals within the organization.

ANS: PTS: 1 DIF: 2 REF: 183
NAT: AACSB Analytic | Operations Management TYP: F

22. Top managers make the broad strategic plan and identify specific tactical plans.

ANS: PTS: 1 DIF: 2 REF: 179
NAT: AACSB Analytic | Operations Management TYP: F

23. The department manager’s tool for daily and weekly operations is called the operational plan.

ANS: PTS: 1 DIF: 1 REF: 184
NAT: AACSB Analytic | Strategy TYP: F

24. Operational planning specifies plans for department managers, supervisors, and individual employees.

ANS: PTS: 1 DIF: 2 REF: 179
NAT: AACSB Analytic | Operations Management TYP: F

25. A visual representation of the key drivers of an organization’s success and shows how specific goals and plans in each area are linked is called an operations map.

ANS: PTS: 1 DIF: 2 REF: 184
NAT: AACSB Analytic | Strategy TYP: F

26. Building good relationships with suppliers and partners would be considered customer service goals.

ANS: PTS: 1 DIF: 2 REF: 185
NAT: AACSB Analytic | Strategy TYP: F

27. Management by objectives, single-use plans, and standing plans are all management planning approaches.

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

28. Specific and measurable goal characteristics apply only to the lower-level goals.

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

29. Goals are most effective when they are specific, measurable, challenging and linked to rewards.

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

30. Goals must be set for every aspect of employee behavior or organizational performance to be effective.

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

31. The goals should be easy, for employees to feel motivated, so that they can achieve them easily which in turn increases their motivation level.

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Motivation Concepts TYP: F

32. MBO refers to managing by opportunity.

ANS: PTS: 1 DIF: 1 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

33. The final step in the MBO process is to review progress.

ANS: PTS: 1 DIF: 1 REF: 187
NAT: AACSB Analytic | Strategy TYP: F

34. An action plan defines the course of action needed to achieve the stated goals.

ANS: PTS: 1 DIF: 1 REF: 187
NAT: AACSB Analytic | Strategy TYP: F

35. The most difficult step in an MBO process is reviewing progress.

ANS: PTS: 1 DIF: 2 REF: 187
NAT: AACSB Analytic | Strategy TYP: F

36. Managers believe they are better oriented toward goal achievement when MBO is used.

ANS: PTS: 1 DIF: 2 REF: 187
NAT: AACSB Analytic | Strategy TYP: F

37. Standing plans define company responses to specific situations such as natural emergencies or competitive setbacks.

ANS: PTS: 1 DIF: 1 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

38. Single-use plans are ongoing plans that are used to provide guidance for tasks performed repeatedly within the organization.

ANS: PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

39. Three critical planning methods are contingency planning, building scenarios, and crisis planning.

ANS: PTS: 1 DIF: 1 REF: 191
NAT: AACSB Analytic | Strategy TYP: F

40. Crisis plans define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions.

ANS: PTS: 1 DIF: 2 REF: 191
NAT: AACSB Analytic | Strategy TYP: F

41. If Renae, manager at Leak Free Roofing, wanted to develop a contingency plan for Leak Free, she would need to look at factors such as new equipment, the economy, and the company workers’ compensation cases.

ANS: PTS: 1 DIF: 3 REF: 191
NAT: AACSB Analytic | Strategy TYP: A

42. Contingency plans can also be considered as scenarios.

ANS: PTS: 1 DIF: 1 REF: 191
NAT: AACSB Analytic | Strategy TYP: F

43. Trend management is looking at trends and discontinuities and imagining possible alternative futures.

ANS: PTS: 1 DIF: 2 REF: 191
NAT: AACSB Analytic | Leadership Principles TYP: F

44. Some firms engage in crisis planning to enable them to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization.

ANS: PTS: 1 DIF: 2 REF: 192
NAT: AACSB Analytic | Strategy TYP: F

45. The first stage in crisis prevention includes setting up effective communication system.

ANS: PTS: 1 DIF: 2 REF: 193
NAT: AACSB Analytic | Environmental Influence TYP: F

46. Prevention and preparation are the two stages of crisis management.

ANS: PTS: 1 DIF: 1 REF: 193
NAT: AACSB Analytic | Strategy TYP: F

47. The ABC Corporation should create a crisis management group that is not cross-functional, but does work together well under pressure.

ANS: PTS: 1 DIF: 2 REF: 193
NAT: AACSB Analytic | Group Dynamics TYP: F

48. The CEO of Andre’s Autos, Inc. must do all of the planning for the company because that is the way to do things in today’s workplace.

ANS: PTS: 1 DIF: 2 REF: 194
NAT: AACSB Analytic | Strategy TYP: A

49. Turtle Terrace should use traditional planning since that is the type of planning every company uses.

ANS: PTS: 1 DIF: 2 REF: 194
NAT: AACSB Analytic | Strategy TYP: A

50. In a complex and competitive business world, traditional planning done by a select few is the only planning that works.

ANS: PTS: 1 DIF: 2 REF: 194
NAT: AACSB Analytic | Environmental Influence TYP: F

51. Managers work with planning experts to develop their own goals and plans in decentralized planning.

ANS: PTS: 1 DIF: 1 REF: 194
NAT: AACSB Analytic | Strategy TYP: F

52. In centralized planning, managers work with planning experts to develop their own goals and plans.

ANS: PTS: 1 DIF: 1 REF: 194
NAT: AACSB Analytic | Strategy TYP: F

53. Planning cannot tame a turbulent environment.

ANS: PTS: 1 DIF: 2 REF: 178
NAT: AACSB Analytic | Strategy TYP: F

54. Defining operational goals and plans occurs in the plan development phase of the organizational planning process.

ANS: PTS: 1 DIF: 2 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

55. Strategic planning tends to be long term and may define organizational action steps from two to five years in the future.

ANS: PTS: 1 DIF: 2 REF: 182
NAT: AACSB Analytic | Strategy TYP: F

56. Goals are typically stated in quantitative terms.

ANS: PTS: 1 DIF: 2 REF: 184
NAT: AACSB Analytic | Strategy TYP: F

57. Providing innovative solutions to customer needs is a goal that would be placed in the internal business process category on a strategy map.

ANS: PTS: 1 DIF: 2 REF: 185
NAT: AACSB Analytic | Strategy TYP: F

58. Managers use strategic goals to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively.

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

59. In order for goals to be effective, they should be challenging but realistic.

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

60. A key benefit of management by objectives is that it aligns individual and departmental goals with company goals.

ANS: PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

61. A major difference between rules and policies is that rules are broad in scope whereas policies are narrow in scope.

ANS: PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

62. One of the biggest benefits of planning is that, in turbulent environments, plans create greater organizational flexibility.

ANS: PTS: 1 DIF: 2 REF: 190
NAT: AACSB Analytic | Strategy TYP: F

63. Crisis planning forces managers to mentally rehearse what they would do if their best laid plans collapse.

ANS: PTS: 1 DIF: 2 REF: 192
NAT: AACSB Analytic | Strategy TYP: F

64. When detecting signals from the external environment as a part of crisis planning, managers are in the preparation stage.

ANS: PTS: 1 DIF: 2 REF: 193
NAT: AACSB Analytic | Strategy TYP: F

65. Stretch goals are typically so far beyond the current levels that people have to be innovative to find ways to reach them.

ANS: PTS: 1 DIF: 2 REF: 193
NAT: AACSB Analytic | Strategy TYP: F

66. Sales in relation to targets is an example of a balanced scorecard metric.

ANS: PTS: 1 DIF: 2 REF: 195
NAT: AACSB Analytic | Strategy TYP: F

67. Intelligence teams are useful when an organization confronts a major intelligence challenge.

ANS: PTS: 1 DIF: 2 REF: 196
NAT: AACSB Analytic | Creation of Value TYP: F

68. Goals and plans are valuable to an organization because they provide rationale for decisions, a guide to action, and an increase in motivation and commitment.

ANS: PTS: 1 DIF: 1 REF: 190
NAT: AACSB Analytic | Motivation Concepts TYP: F

69. When a company faces rapid change, problems with planning can occur.

ANS: PTS: 1 DIF: 2 REF: 190
NAT: AACSB Analytic | Strategy TYP: F

MULTIPLE CHOICE

1. ____ refers to a desired future state that an organization attempts to realize.
a. Plan
b. Vision statement
c. Goal
d. Mission statement
e. Idea

ANS: PTS: 1 DIF: 2 REF: 178
NAT: AACSB Analytic | Strategy TYP: F

2. ____ specify future ends and ____ specify today’s means.
a. Goals, plans
b. Plans, goals
c. Planning, organizing
d. Ideas, behaviors
e. Mission, vision

ANS: PTS: 1 DIF: 2 REF: 178
NAT: AACSB Analytic | Strategy TYP: F

3. A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a(n)
a. goal.
b. plan.
c. mission.
d. vision.
e. objective.

ANS: PTS: 1 DIF: 1 REF: 178
NAT: AACSB Analytic | Strategy TYP: F

4. ____ is the act of determining the organization’s goals and the means for achieving them.
a. Brainstorming
b. Organizing
c. Planning
d. Developing a mission
e. A blueprint

ANS: PTS: 1 DIF: 1 REF: 178
NAT: AACSB Analytic | Strategy TYP: F

5. The planning process begins with which of these?
a. The development of operational goals
b. The development of a mission statement
c. Communication of goals to the rest of the organization
d. A company-wide meeting
e. Brainstorming

ANS: PTS: 1 DIF: 2 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

6. The ____ is the basis for the strategic level of goals and plans which in turn shapes the ____ and ____ level.
a. goal, mission, tactical
b. objective, operational, mission
c. operational goal, mission and tactical
d. mission, tactical, operational
e. tactical plan, operational, mission

ANS: PTS: 1 DIF: 2 REF: 179
NAT: AACSB Analytic | Strategy TYP: F

7. ____ is primarily responsible for strategic goals/plans.
a. Middle management
b. Board of directors
c. Consultants
d. Top management
e. Lower management

ANS: PTS: 1 DIF: 1 REF: 179
NAT: AACSB Analytic | Strategy TYP: F

8. ____ is primarily responsible for operational goals/plans.
a. Middle management
b. Board of directors
c. Consultants
d. Top management
e. Lower management

ANS: PTS: 1 DIF: 1 REF: 179
NAT: AACSB Analytic | Strategy TYP: F

9. Which of these is(are) primarily concerned with tactical goals/plans?
a. Middle management
b. Board of directors
c. Consultants
d. Senior management
e. Lower management

ANS: PTS: 1 DIF: 1 REF: 179
NAT: AACSB Analytic | Strategy TYP: F

10. Sherry is a first-line supervisor at Rooftop Corporation. She is most concerned with which level of goals?
a. Operational goals
b. Tactical plans
c. Strategic goals
d. Mission statement
e. Vision

ANS: PTS: 1 DIF: 2 REF: 184
NAT: AACSB Analytic | Strategy TYP: F

11. Which of the following symbolizes the legitimacy of the organization to external audiences?
a. Operational goals
b. Tactical plans
c. Strategic goals
d. Mission statement
e. Tactical goals

ANS: PTS: 1 DIF: 2 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

12. Roxanne is a manager at Geronimo Gaming. She recently attended a seminar on goal setting. She wishes to use goals to provide a sense of direction to her staff. She is using goals as
a. a way to legitimize her department.
b. a source of motivation.
c. a standard of performance.
d. a guide to action.
e. impress others.

ANS: PTS: 1 DIF: 2 REF: 190
NAT: AACSB Analytic | Strategy TYP: A

13. Which of the following is not a reason why planning positively affects a company’s performance?
a. Goals and plans provide legitimacy for customers
b. Goals and plans set a standard of performance
c. Goals and plans guide resource allocation
d. Goals and plans are a guide to action
e. Goals and plans are a source of motivation and commitment

ANS: PTS: 1 DIF: 2 REF: 190
NAT: AACSB Analytic | Strategy TYP: F

14. Which of the following is not a step in the organizational planning process?
a. Monitor and learn
b. Plan operations
c. Translate the plan
d. Develop the plan
e. Plan marketing tactics

ANS: PTS: 1 DIF: 2 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

15. Which of the following is NOT a tool for executing a plan?
a. Management by objectives
b. Operations map
c. Performance dashboards
d. Single use plans
e. Decentralized responsibility

ANS: PTS: 1 DIF: 2 REF: 184
NAT: AACSB Analytic | Strategy TYP: F

16. A statement that identifies distinguishing characteristics of an organization is known as
a. a goals statement.
b. a values statement.
c. an income statement.
d. a mission statement.
e. a competitive-edge statement.

ANS: PTS: 1 DIF: 1 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

17. Which of these are described by mission statements?
a. Corporate values
b. Product quality
c. Location of facilities
d. All of these
e. None of these

ANS: PTS: 1 DIF: 1 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

18. The organization’s reason for existence is known as
a. the organization’s value.
b. the organization’s vision.
c. the organization’s mission.
d. the organization’s goal.
e. the organization’s service.

ANS: PTS: 1 DIF: 2 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

19. “We respect our employees and value their diversity” is an example of a statement you are most likely to find in the organization’s
a. mission.
b. strategic goals.
c. tactical goals.
d. strategic plans.
e. tactical plans.

ANS: PTS: 1 DIF: 3 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

20. “We seek to become the premier business school in the west” is an example of a statement you are most likely to find in the organization’s
a. tactical goals.
b. operational goals.
c. mission.
d. tactical plans.
e. operational plans.

ANS: PTS: 1 DIF: 3 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

21. ____ refers to a broadly stated definition of the organization’s basic business scope and operations that distinguishes it from similar types of organizations.
a. Mission statement
b. Goal statement
c. Management by objective
d. Goal setting
e. Corporate competitive-value statement

ANS: PTS: 1 DIF: 1 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

22. At the top of the goal hierarchy is the
a. strategic goals.
b. tactical goals.
c. operational goals.
d. mission.
e. employee goals.

ANS: PTS: 1 DIF: 2 REF: 181
NAT: AACSB Analytic | Strategy TYP: F

23. ____ are the broad statements of where the organization wants to be in the future.
a. Operational goals
b. Tactical goals
c. Strategic goals
d. Operational goals
e. Tactical plans

ANS: PTS: 1 DIF: 1 REF: 182
NAT: AACSB Analytic | Strategy TYP: F

24. The official goals of the organization are best represented by the ____.
a. strategic goals
b. tactical goals
c. operational goals
d. competitive goals
e. none of these

ANS: PTS: 1 DIF: 2 REF: 182
NAT: AACSB Analytic | Strategy TYP: F

25. A long-term time frame is most closely associated with
a. operational plans.
b. tactical plans.
c. strategic plans.
d. mission plans.
e. tactical goals.

ANS: PTS: 1 DIF: 2 REF: 182
NAT: AACSB Analytic | Strategy TYP: F

26. ____ are called the action steps by which an organization intends to attain its strategic goals.
a. Tactical goals
b. Operational goals
c. Tactical plans
d. Operational plans
e. Strategic plans

ANS: PTS: 1 DIF: 1 REF: 182
NAT: AACSB Analytic | Strategy TYP: F

27. ____ goals lead to the attainment of ____ goals, which in turn lead to the attainment of ____ goals.
a. Operational, strategic, tactical
b. Tactical, operational, strategic
c. Strategic, tactical, operational
d. Operational, tactical, strategic
e. None of these.

ANS: PTS: 1 DIF: 3 REF: 182-184
NAT: AACSB Analytic | Strategy TYP: F

28. Goals that define the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals is called
a. strategic goals.
b. tactical goals.
c. operational goals.
d. a mission.
e. a plan.

ANS: PTS: 1 DIF: 1 REF: 183
NAT: AACSB Analytic | Strategy TYP: F

29. Sarah is a middle manager at Stylin’ Sneakers Corporation. She is most likely responsible for the achievement of ____ goals.
a. operational
b. tactical
c. strategic
d. lower-level
e. top-level

ANS: PTS: 1 DIF: 2 REF: 179
NAT: AACSB Analytic | Strategy TYP: F

30. Which of the following refer to specific results expected from individuals?
a. Operational goals
b. Tactical goals
c. Strategic goals
d. Operational plans
e. Mission statements

ANS: PTS: 1 DIF: 2 REF: 184
NAT: AACSB Analytic | Strategy TYP: F

31. Which of the following represent plans developed at the organization’s lower levels that specify action steps toward achieving operational goals and that support tactical planning activities?
a. Tactical plans
b. Strategic plans
c. Operational plans
d. Supervisory plans
e. Organizational plans

ANS: PTS: 1 DIF: 1 REF: 184
NAT: AACSB Analytic | Strategy TYP: F

32. The ____ is the department manager’s tool for daily and weekly operations.
a. conventional goal
b. strategic goal
c. strategic plan
d. operational plan
e. targeted plan

ANS: PTS: 1 DIF: 2 REF: 184
NAT: AACSB Analytic | Operations Management TYP: F

33. Which of the following is a visual representation of the key drivers of an organization’s success, showing the cause-and-effect relationships among goals and plans?
a. Operational plan
b. Gantt chart
c. Strategy map
d. SWOT analysis
e. Strategic plan

ANS: PTS: 1 DIF: 2 REF: 184
NAT: AACSB Analytic | Strategy TYP: F

34. According to the strategy map described in chapter 7, which of the following is NOT a type of goal?
a. Financial performance goals
b. Customer service goals
c. Internal business process goals
d. Learning and growth goals
e. External business process goals

ANS: PTS: 1 DIF: 1 REF: 185
NAT: AACSB Analytic | Strategy TYP: F

35. Managers use ____ to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively.
a. strategic goals
b. operational goals
c. growth goals
d. financial results
e. internal business process goals

ANS: PTS: 1 DIF: 2 REF: 184
NAT: AACSB Analytic | Operations Management TYP: F

36. Which of these is lacking in the goal “profits should be increased in the coming year?”
a. Specific and measurable
b. Challenging but realistic
c. Covers key result areas
d. Defined time period
e. None of these

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: A

37. Kate is a salesperson at a large retail chain. She was assigned a goal of $265,000 in sales for the current quarter. She is unhappy because she knows that the most any salesperson has sold in one quarter in the past is $150,000. Her goal of $265,000 is probably
a. not specific and measurable.
b. not realistic.
c. irrelevant.
d. lacking a specific time period.
e. does not cover key result area.

ANS: PTS: 1 DIF: 3 REF: 186
NAT: AACSB Analytic | Strategy TYP: A

38. You are violating which of these goal characteristics when you attempt to create goals for every aspect of employee behavior?
a. Specific and measurable
b. Linked to rewards
c. Defined time period
d. Cover key result areas
e. Challenging but realistic

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: A

39. Darren set goals for each of his employees. Each employee ended up with at least twenty-five goals. This process violates which of the following criteria for effective goals?
a. Specific and measurable
b. Challenging but realistic
c. Covers key result areas
d. Defined time period
e. Linked to rewards

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: A

40. All of the following are characteristics of effective goal setting EXCEPT
a. goals should be challenging but not unreasonably difficult.
b. goals should be set for every aspect of employee behavior.
c. specific and measurable.
d. cover key results area.
e. linked to rewards.

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

41. The ultimate impact of goals depended on the extent to which goal achievement is linked to
a. rewards.
b. salary increases.
c. promotions.
d. all of these.
e. salary increases and promotions.

ANS: PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

42. ____ is the first step in the MBO process.
a. Setting goals
b. Developing action plans
c. Appraising overall performance
d. Reviewing progress
e. None of these

ANS: PTS: 1 DIF: 1 REF: 187
NAT: AACSB Analytic | Strategy TYP: F

43. Which of these is a method of management whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance?
a. Organizational planning
b. Management by objectives
c. Goal setting
d. Mission development
e. Vision development

ANS: PTS: 1 DIF: 1 REF: 186-187
NAT: AACSB Analytic | Strategy TYP: F

44. High Fence Corporation is currently implementing an MBO program. Managers and employees jointly set objectives and develop action plans, and goal achievement is evaluated on an annual basis. High Fence is missing which major activity that must occur in order for MBO to be successful?
a. Developing a mission statement
b. Developing tactical goals
c. Reviewing progress
d. Reviewing operational plans
e. None of these

ANS: PTS: 1 DIF: 2 REF: 187
NAT: AACSB Analytic | Strategy TYP: A

45. In using MBO, objectives should be set
a. by the supervisor.
b. by the employee.
c. jointly by the supervisor and the employee.
d. by the accounting department.
e. by top management.

ANS: PTS: 1 DIF: 2 REF: 187
NAT: AACSB Analytic | Strategy TYP: F

46. Frostburg Fireplaces has used MBO for the past year. Top management just finished evaluating overall performance. The next step in the MBO process should be
a. to develop new action plans.
b. to develop new objectives based on the review of last year’s performance.
c. to begin a new MBO “cycle”, using the same objectives as last year.
d. to wait several months to allow information to be digested.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 187
NAT: AACSB Analytic | Strategy TYP: F

47. ____ is the final step in the MBO process.
a. Appraise overall performance
b. Develop an action plan
c. Review progress
d. Set goals
e. Conduct periodic checkups

ANS: PTS: 1 DIF: 1 REF: 187
NAT: AACSB Analytic | Strategy TYP: F

48. Which of the following is NOT one of the benefits of MBO?
a. Performance can be improved at all company levels.
b. Employees are motivated.
c. Efforts are focused on activities that will lead to goal attainment.
d. Operational goals are able to displace strategic goals.
e. Individual and department goals are aligned with company goals.

ANS: PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

49. Which of these is true about single-use plans?
a. They are developed to achieve a set of goals that are unlikely to be repeated in the future.
b. They are used to provide guidance for tasks performed repeatedly within the organization.
c. They define plans that define company responses to specific situations, such as emergencies or setbacks.
d. They are most important in the organizations.
e. None of these.

ANS: PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

50. Standing plans are
a. developed to achieve a set of goals that are unlikely to be repeated in the future.
b. used to provide guidance for tasks performed repeatedly within the organization.
c. define company responses to specific situations, such as emergencies or setbacks.
d. the most important in the organizations.
e. none of these.

ANS: PTS: 1 DIF: 1 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

51. A project is an example of a
a. policy.
b. standing plan.
c. procedure.
d. single-use plan.
e. rule.

ANS: PTS: 1 DIF: 1 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

52. Cheyenne Creamery requires that all absent employees bring a note from their doctor when returning to work. This is an example of a
a. single-plan use.
b. standing plan.
c. program.
d. procedure.
e. project.

ANS: PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: A

53. Numerous ____ are likely to be part of an overall ____.
a. programs, project
b. policies, project
c. standing plans, program
d. projects, program
e. programs, rule

ANS: PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

54. ____ define boundaries within which to make a decision.
a. Programs
b. Policies
c. Rules
d. Procedures
e. Project

ANS: PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

55. An example of a ____ is a statement supporting the organization’s efforts in the area of sexual harassment.
a. procedure
b. rule
c. policy
d. single-use plan
e. program

ANS: PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

56. “No food and/or drinks in the classroom” is an example of a
a. procedure.
b. rule.
c. policy.
d. single-use plan.
e. project.

ANS: PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: A

57. Which of these are true about contingency plans?
a. They are developed to achieve a set of goals that are unlikely to be repeated in the future.
b. They are used to provide guidance for tasks performed repeatedly within the organization.
c. They define company responses to specific situations, such as emergencies or setbacks.
d. They are most important in the organizations.
e. None of these.

ANS: PTS: 1 DIF: 1 REF: 191
NAT: AACSB Analytic | Strategy TYP: F

58. Contingency plans are also referred to as
a. standing plans.
b. rules.
c. scenarios.
d. procedures.
e. operationally tactical plans.

ANS: PTS: 1 DIF: 1 REF: 191
NAT: AACSB Analytic | Strategy TYP: F

59. ____ involves looking at trends and discontinuities and imagining possible alternative future to build a framework within which unexpected future events can be managed.
a. Scenario building
b. Crisis planning
c. Contingency planning
d. Trend management
e. Caution planning

ANS: PTS: 1 DIF: 2 REF: 191
NAT: AACSB Analytic | Strategy TYP: F

60. ____ enables firms to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren’t prepared with a quick and appropriate response.
a. Incident planning
b. Contingency planning
c. Strategic planning
d. Crisis planning
e. Emergency planning

ANS: PTS: 1 DIF: 2 REF: 192
NAT: AACSB Analytic | Strategy TYP: F

61. The crisis management plan should be a ____ that specifies the actions to be taken, and by whom, if a crisis occurs.
a. vague, verbal plan
b. detailed, verbal plan
c. long, difficult to read plan
d. vague, written plan
e. detailed, written plan

ANS: PTS: 1 DIF: 1 REF: 194
NAT: AACSB Analytic | Strategy TYP: F

62. Which of the following is NOT involved in the stages of crisis planning?
a. Setting up effective communication systems
b. Creating detailed crisis management plans
c. Investigating all stakeholders
d. Designating a crisis management team and spokesperson
e. Building relationships

ANS: PTS: 1 DIF: 2 REF: 193
NAT: AACSB Analytic | Strategy TYP: F

63. Traditionally, if Stephanie, CEO of Butterfly Pillows, needed to conduct corporate planning, it would be performed by all of the following EXCEPT
a. central planning departments.
b. decentralized planning groups.
c. top executives.
d. consulting groups.
e. the president of the company.

ANS: PTS: 1 DIF: 2 REF: 194
NAT: AACSB Analytic | Group Dynamics TYP: A

64. The traditional approach to corporate planning was to
a. have a decentralized planning staff.
b. have a centralized planning department.
c. set up a planning task force.
d. set up planning committees.
e. use TQM approach.

ANS: PTS: 1 DIF: 1 REF: 194
NAT: AACSB Analytic | Strategy TYP: F

65. Alabama Airlines has three planning specialists who help division managers develop their own division plans. Serving as consultants to the divisions, the planning specialists give advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is utilizing what approach to the planning function?
a. Centralized planning department
b. Decentralized planning staff
c. Planning task force
d. Centralized planning committee
e. TQM

ANS: PTS: 1 DIF: 2 REF: 194
NAT: AACSB Analytic | Strategy TYP: A

66. Of the strategic management functions, which is considered the most fundamental?
a. Executing
b. Analyzing
c. Controlling
d. Planning
e. Leading

ANS: PTS: 1 DIF: 2 REF: 178
NAT: AACSB Analytic | Strategy TYP: F

67. The planning process starts with:
a. A formal mission that defines the organization’s purpose
b. Tactical planning
c. Strategic planning
d. Operational planning
e. Controlling performance

ANS: PTS: 1 DIF: 2 REF: 179
NAT: AACSB Analytic | Strategy TYP: F

68. Silver Star Automobiles holds monthly planning and operational reviews to ensure that it is on track for meeting organizational goals. This involves which stage of the organizational planning process?
a. Developing the plan
b. Translating the plan
c. Plan operations
d. Executing the plan
e. Monitoring and learning

ANS: PTS: 1 DIF: 3 REF: 181
NAT: AACSB Analytic | Strategy TYP: A

69. Which type of plan helps managers implement the overall strategic plan?
a. Operational
b. Contingency
c. Tactical
d. Crisis
e. Corporate-level

ANS: PTS: 1 DIF: 2 REF: 183
NAT: AACSB Analytic | Strategy TYP: F

70. In developing a strategy map for her interior design business, Carla has decided to promote employee development by providing online training tools. This involves goals in which strategy map category?
a. Financial performance goals
b. Learning and growth goals
c. Internal business process goals
d. Customer service goals
e. Supply chain goals

ANS: PTS: 1 DIF: 3 REF: 185
NAT: AACSB Analytic | Strategy TYP: A

71. Focusing manager and employee efforts on activities that will lead to goal attainment is a benefit of what management method?
a. Tactical planning
b. Contingency planning
c. Single-use planning
d. Management by objectives
e. Management by walking around

ANS: PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: A

72. Eugene, a human resource manager of a medium-sized technology business, has learned that employees are wasting valuable work time by visiting Facebook and other social media Web sites. As a result, Eugene’s plans to establish a new company policy that limits use of social media to only those tasks that are company related. This would be considered what type of plan?
a. Project plan
b. Single-use plan
c. Tactical plan
d. Operational plan
e. Strategic plan

ANS: PTS: 1 DIF: 3 REF: 188
NAT: AACSB Analytic | Strategy TYP: A

73. Which of the following is a commonly-cited limitation of planning?
a. Plans limit employee motivation and commitment
b. Plans make resource allocation more difficult
c. Plans make it more difficult to measure standards of performance
d. Plans boost intuition and creativity
e. Plans can create a false sense of security

ANS: PTS: 1 DIF: 2 REF: 190
NAT: AACSB Analytic | Strategy TYP: F

74. Jerrica, a finance manager at LRV industries, is asked by her boss to develop a plan in the event that company sales drop by 20 percent or more. This type of plan is known as a(n):
a. Contingency planning
b. Financial planning
c. Crisis planning
d. Consumer protection
e. Environmental planning

ANS: PTS: 1 DIF: 3 REF: 191
NAT: AACSB Analytic | Strategy TYP: A

75. The two stages of crisis planning include:
a. Prevention and control
b. Planning and leading
c. Prevention and preparation
d. Preparation and control
e. Leading and organizing

ANS: PTS: 1 DIF: 2 REF: 192
NAT: AACSB Analytic | Strategy TYP: F

76. Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or accident. Which of the following should Jeff undertake to prepare for such a crisis?
a. Building relationships with neighboring businesses
b. Detecting signals from the natural environment
c. Polling employees on the likelihood of an environmental disaster
d. Designating a crisis management team in the event of an environmental disaster
e. Dismantling the company’s ties to the external media

ANS: PTS: 1 DIF: 3 REF: 193
NAT: AACSB Analytic | Strategy TYP: A

77. ___________ are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence.
a. Operational goals
b. Stretch goals
c. Strategic goals
d. Tactical goals
e. Bottom-up goals

ANS: PTS: 1 DIF: 2 REF: 194
NAT: AACSB Analytic | Strategy TYP: F

78. Sam is in charge of strategy control at Lanser’s, a large clothing retailer. He regularly tracks sales in relation to targets, number of products on back order, and percentage of customer service calls resolved within specified time periods. These metrics are known as:
a. Financial indicators
b. Tactical goals
c. Performance dashboards
d. Balanced scoreboards
e. Operational standards

ANS: PTS: 1 DIF: 3 REF: 195
NAT: AACSB Analytic | Strategy TYP: A

79. A(n) _________ is a cross-functional group of managers and employees who work together to gain a deep understanding of a specific business issues, with the aim of presenting insights related to that issue.
a. Espionage team
b. Functional team
c. Task force
d. Project team
e. Intelligence team

ANS: PTS: 1 DIF: 2 REF: 196
NAT: AACSB Analytic | Strategy TYP: F

80. At Save-tech, Sophia, director of marketing, is a member of a cross-functional group of managers and employees. The purpose of the group is to gain a deep understanding company’s competitive environment and periodically present these findings to top management. Sophia is involved in what type of team?
a. Intelligence team
b. Functional team
c. Task force
d. Project team
e. Espionage team

ANS: PTS: 1 DIF: 3 REF: 196
NAT: AACSB Analytic | Strategy TYP: A

81. One major limitation of goals and plans is:
a. Goals and plans guide resource allocation
b. Goals and plans may cause rigidity in a turbulent environment
c. Goals and plans decrease employee motivation
d. Goals and plans decrease employee commitment
e. None of the above

ANS: PTS: 1 DIF: 2 REF: 190
NAT: AACSB Analytic | Strategy TYP: F

CASE

Scenario – Katelynn Kareem

Managers at WXYZ just announced that the new management program would be focused around MBO concepts. Katelynn Kareem had been a manager at WXYZ for ten years and she was not certain if this new MBO approach was going to fit her department. She had strong commitment to achieving the company’s objectives, but she also knew her employees well enough to know that some didn’t share the same commitment.

1. Katelynn can anticipate enjoying the advantages of MBO which include
a. increased orientation toward goal achievement.
b. performance can improve at all company levels.
c. employees are more motivated.
d. increased orientation toward goal achievement and motivation.
e. all of these.

ANS:

PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Motivation Concepts KEY: Scenario Questions
TYP: A

2. What can Katelynn expect to be doing during the final step of the MBO process?
a. Setting goals
b. Reviewing progress
c. Appraising overall performance
d. Defining mission
e. Developing action plans

ANS:

PTS: 1 DIF: 2 REF: 187 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A

3. In the MBO process, after the first step of setting objectives is accomplished, the next step that Katelynn should expect is
a. reviewing progress toward company goals.
b. appraising overall performance.
c. developing action plans.
d. having a company party to celebrate.
e. none of these.

ANS:

PTS: 1 DIF: 2 REF: 187 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A

COMPLETION

1. A(n) ____________________ is a desired future state that the organization attempts to realize.

ANS:

PTS: 1 DIF: 2 REF: 178 NAT: AACSB Analytic | Strategy
TYP: F

2. A(n) ____________________ is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.

ANS:

PTS: 1 DIF: 2 REF: 178 NAT: AACSB Analytic | Strategy
TYP: F

3. The act of determining the organization’s goals and the means for achieving them is referred to as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 178 NAT: AACSB Analytic | Strategy
TYP: F

4. ____________________ and plans are the responsibilities of middle managers.

ANS:

PTS: 1 DIF: 2 REF: 179 NAT: AACSB Analytic | Strategy
TYP: F

5. Operational plans that focus on specific tasks and processes that help to meet tactical and strategic goals are developed by ____________________ managers and supervisors.

ANS:

PTS: 1 DIF: 2 REF: 179 NAT: AACSB Analytic | Strategy
TYP: F

6. ____________________ describes the organization’s reason for existence.

ANS:

PTS: 1 DIF: 2 REF: 181 NAT: AACSB Analytic | Strategy
TYP: F

7. A(n) ____________________ is a broadly stated definition of basic business scope and operations that distinguishes the organization from others of a similar type.

ANS:

PTS: 1 DIF: 2 REF: 181 NAT: AACSB Analytic | Strategy
TYP: F

8. Broad statements describing where the organization wants to be in the future are called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 182 NAT: AACSB Analytic | Strategy
TYP: F

9. ____________________ define the action steps by which an organization intends to attain its strategic goals.

ANS:

PTS: 1 DIF: 2 REF: 182 NAT: AACSB Analytic | Strategy
TYP: F

10. Goals that define the outcomes that major departments must achieve in order for the organization to reach its overall goals are known as ____________________ goals.

ANS:

PTS: 1 DIF: 2 REF: 183 NAT: AACSB Analytic | Strategy
TYP: F

11. ____________________ are designed to help execute major strategic plans and to accomplish a specific part of the company’s strategy.

ANS:

PTS: 1 DIF: 2 REF: 183 NAT: AACSB Analytic | Strategy
TYP: F

12. The specific results expected from departments, work groups, and individuals are the ____________________ goals.

ANS:

PTS: 1 DIF: 2 REF: 184 NAT: AACSB Analytic | Strategy
TYP: F

13. ____________________ plans are developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans.

ANS:

PTS: 1 DIF: 2 REF: 184 NAT: AACSB Analytic | Strategy
TYP: F

14. ____________________ is a method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.

ANS:

PTS: 1 DIF: 2 REF: 186 NAT: AACSB Analytic | Strategy
TYP: F

15. Managers believe that they are better oriented toward goal achievement when ____________________ is used.

ANS:

PTS: 1 DIF: 2 REF: 187 NAT: AACSB Analytic | Strategy
TYP: F

16. ____________________ plans are used to provide guidance for work-related tasks that are performed repeatedly within the organization.

ANS:

PTS: 1 DIF: 2 REF: 188 NAT: AACSB Analytic | Strategy
TYP: F

17. ____________________ plans are developed to achieve a set of goals that are not likely to be repeated in the future.

ANS:

PTS: 1 DIF: 2 REF: 188 NAT: AACSB Analytic | Strategy
TYP: F

18. ____________________ are ongoing plans that are used to provide guidance for tasks performed repeatedly within the organization.

ANS:

PTS: 1 DIF: 2 REF: 188 NAT: AACSB Analytic | Strategy
TYP: F

19. Plans that define company responses to specific situations, such as emergencies, setbacks, or unexpected conditions are called ____________________ plans.

ANS:

PTS: 1 DIF: 2 REF: 191 NAT: AACSB Analytic | Strategy
TYP: F

20. A special type of contingency plan that is used when events are sudden and devastating and require immediate response is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 192 NAT: AACSB Analytic | Strategy
TYP: F

21. The crisis management plan should be a(n) ____________________ that specifies the actions to be taken, and by whom, if a crisis occurs.

ANS:

PTS: 1 DIF: 1 REF: 194 NAT: AACSB Analytic | Strategy
TYP: F

22. A group of planning specialists assigned to major departments and divisions to help managers develop their own strategic plans is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 194 NAT: AACSB Analytic | Strategy
TYP: F

SHORT ANSWER

1. List four reasons why planning generally positively affects a company’s performance?

ANS:

PTS: 1 DIF: 2 REF: 190 NAT: AACSB Analytic | Strategy
TYP: F

2. List the five characteristics of effective goals.

ANS:

PTS: 1 DIF: 2 REF: 186 NAT: AACSB Analytic | Strategy
TYP: F

3. List the four major activities that must occur in order for MBO to succeed.

ANS:

PTS: 1 DIF: 2 REF: 187 NAT: AACSB Analytic | Strategy
TYP: F

4. What are the two stages of crisis management?

ANS:

PTS: 1 DIF: 2 REF: 192-193 NAT: AACSB Analytic | Strategy
TYP: F

ESSAY

1. In what ways do plans and goals benefit an organization?

ANS:

PTS: 1 DIF: 2 REF: 190 NAT: AACSB Analytic | Strategy
TYP: F

2. Compare the four levels of goals and plans.

ANS:

PTS: 1 DIF: 3 REF: 179 NAT: AACSB Analytic | Strategy
TYP: F

3. Briefly define the characteristics of an effective goal.

ANS:

PTS: 1 DIF: 2 REF: 186 NAT: AACSB Analytic | Strategy
TYP: F

4. List and define the four major activities that must occur in order for management by objectives (MBO) to succeed.

ANS:

PTS: 1 DIF: 3 REF: 187 NAT: AACSB Analytic | Strategy
TYP: F

5. List three innovative approaches to planning.

ANS:

PTS: 1 DIF: 2 REF: 194-195 NAT: AACSB Analytic | Strategy
TYP: F
Chapter 8—Strategy Formulation and Execution

TRUE/FALSE

1. Strategic management largely determines which organizations succeed and which ones struggle.

ANS: PTS: 1 DIF: 1 REF: 203
NAT: AACSB Analytic | Strategy TYP: F

2. Front-line managers have the final responsibility for strategic planning.

ANS: PTS: 1 DIF: 2 REF: 204
NAT: AACSB Analytic | Strategy TYP: F

3. Top managers and chief executives have the final responsibility for strategic planning.

ANS: PTS: 1 DIF: 2 REF: 204
NAT: AACSB Analytic | Strategy TYP: F

4. Research has shown that strategic thinking and planning positively affect a firm’s performance and financial success.

ANS: PTS: 1 DIF: 1 REF: 203
NAT: AACSB Analytic | Strategy TYP: F

5. Better-Than-The-Rest, Inc.’s ability to market its products better than its competitors is an example of its core competence.

ANS: PTS: 1 DIF: 2 REF: 204-205
NAT: AACSB Analytic | Strategy TYP: A

6. Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment.

ANS: PTS: 1 DIF: 2 REF: 204
NAT: AACSB Analytic | Strategy TYP: F

7. The essence of formulating strategy is choosing how the organization will be identical to its key competitors in the industry.

ANS: PTS: 1 DIF: 2 REF: 204
NAT: AACSB Analytic | Strategy TYP: F

8. Competitive advantage refers to the set of decisions and actions used to formulate and implement strategies.

ANS: PTS: 1 DIF: 2 REF: 204
NAT: AACSB Analytic | Strategy TYP: F

9. The interaction of Production and Sales working together to produce profit greater than the total of both working separately is an example of synergy.

ANS: PTS: 1 DIF: 3 REF: 205
NAT: AACSB Analytic | Strategy TYP: A

10. The combination of benefits received and costs paid by the customer refers to value.

ANS: PTS: 1 DIF: 1 REF: 205
NAT: AACSB Analytic | Strategy TYP: F

11. Value occurs when the organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone.

ANS: PTS: 1 DIF: 2 REF: 205
NAT: AACSB Analytic | Strategy TYP: F

12. Corporate-level strategy pertains to the organization as a whole.

ANS: PTS: 1 DIF: 1 REF: 206
NAT: AACSB Analytic | Strategy TYP: F

13. The “How do we compete?” question concerns functional-level strategy.

ANS: PTS: 1 DIF: 2 REF: 206
NAT: AACSB Analytic | Strategy TYP: F

14. Strategic decisions at the business level concern amount of advertising, direction and extent of R & D, product changes, new product development, equipment and facilities, and expansion or contraction of product lines.

ANS: PTS: 1 DIF: 2 REF: 207
NAT: AACSB Analytic | Strategy TYP: F

15. The three levels of strategy are business, corporate, and global.

ANS: PTS: 1 DIF: 2 REF: 206
NAT: AACSB Analytic | Strategy TYP: F

16. Strategy implementation involves the planning and decision making that lead to the establishment of the firm’s goals.

ANS: PTS: 1 DIF: 1 REF: 208
NAT: AACSB Analytic | Strategy TYP: F

17. The administration and implementation of the strategic plan is strategy execution.

ANS: PTS: 1 DIF: 2 REF: 208
NAT: AACSB Analytic | Strategy TYP: F

18. SWOT analysis includes a review of the internal threats and opportunities.

ANS: PTS: 1 DIF: 1 REF: 209
NAT: AACSB Analytic | Strategy TYP: F

19. Executives acquire information about external opportunities and strengths from a variety of reports, including budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction.

ANS: PTS: 1 DIF: 1 REF: 209
NAT: AACSB Analytic | Strategy TYP: F

20. Internal analysis examines overall organization structure, management competence and quality, and human resource characteristics.

ANS: PTS: 1 DIF: 2 REF: 209
NAT: AACSB Analytic | Strategy TYP: F

21. Threats are characteristics of the internal environment that may prevent the organization from achieving its strategic goals.

ANS: PTS: 1 DIF: 2 REF: 209
NAT: AACSB Analytic | Strategy TYP: F

22. The task environment sectors are the most relevant to strategic behavior and include the behavior of competitors, customers, suppliers, and the labor supply.

ANS: PTS: 1 DIF: 3 REF: 210
NAT: AACSB Analytic | Strategy TYP: F

23. The mix of business units and product lines that fit together in a logical way to provide synergy and competitive advantage for the corporation pertains to portfolio strategy.

ANS: PTS: 1 DIF: 1 REF: 211
NAT: AACSB Analytic | Strategy TYP: F

24. The BCG (Boston Consulting Group) matrix evaluates SBUs with respect to their business growth rate and geographical location.

ANS: PTS: 1 DIF: 1 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

25. The question mark exists in a new, rapidly growing industry but has only a small market share, according to the BCG Matrix.

ANS: PTS: 1 DIF: 1 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

26. In BCG Matrix, the circle size represents the relative profit made by each business in the company’s portfolio.

ANS: PTS: 1 DIF: 2 REF: 213
NAT: AACSB Analytic | Strategy TYP: F

27. According to the BCG Matrix, the cash cow has a large market share in a rapidly growing industry.

ANS: PTS: 1 DIF: 2 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

28. The dog, according to the BCG Matrix, is a poor performer.

ANS: PTS: 1 DIF: 2 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

29. Diversification is a strategy of moving into new lines of business.

ANS: PTS: 1 DIF: 1 REF: 213
NAT: AACSB Analytic | Strategy TYP: F

30. The bargaining power of customers is one of Porter’s five competitive forces.

ANS: PTS: 1 DIF: 1 REF: 215
NAT: AACSB Analytic | Strategy TYP: F

31. According to Porter, the bargaining power of the government is one of the five competitive forces affecting an organization’s competitive environment.

ANS: PTS: 1 DIF: 1 REF: 215
NAT: AACSB Analytic | Strategy TYP: F

32. Vertical integration means a firm expands into businesses that either produce the supplies needed to make products or that distribute and sell those products to customers.

ANS: PTS: 1 DIF: 2 REF: 213
NAT: AACSB Analytic | Strategy TYP: F

33. The Internet tends to lower the bargaining power of suppliers.

ANS: PTS: 1 DIF: 1 REF: 215
NAT: AACSB Analytic | Strategy TYP: F

34. With the leveling force of the Internet and information technology, it has become easier for many companies to find ways to distinguish themselves from their competitors.

ANS: PTS: 1 DIF: 2 REF: 216
NAT: AACSB Analytic | Strategy TYP: F

35. Differentiation, cost leadership, and focus are three of Porter’s competitive strategies.

ANS: PTS: 1 DIF: 2 REF: 216
NAT: AACSB Analytic | Strategy TYP: F

36. Cost leadership is a type of competitive strategy with which the organization seeks to distinguish its products or services from that of competitors.

ANS: PTS: 1 DIF: 2 REF: 216
NAT: AACSB Analytic | Strategy TYP: F

37. A differentiation strategy can increase rivalry with competitors if buyers are loyal to a company’s brand.

ANS: PTS: 1 DIF: 2 REF: 216
NAT: AACSB Analytic | Strategy TYP: F

38. Organization’s with a focus strategy concentrate on a specific regional market or buyer group.

ANS: PTS: 1 DIF: 1 REF: 217
NAT: AACSB Analytic | Strategy TYP: F

39. Strategic partnerships are the current trend, rather than mergers and acquisitions.

ANS: PTS: 1 DIF: 2 REF: 219
NAT: AACSB Analytic | Strategy TYP: F

40. The world-wide standardization of product design and advertising refers to globalization.

ANS: PTS: 1 DIF: 1 REF: 220
NAT: AACSB Analytic | Strategy TYP: F

41. The export strategy treats the world as a single global market.

ANS: PTS: 1 DIF: 2 REF: 221
NAT: AACSB Analytic | Strategy TYP: F

42. The transnational strategy handles markets independently for each country.

ANS: PTS: 1 DIF: 2 REF: 221-222
NAT: AACSB Analytic | Strategy TYP: F

43. With a multidomestic strategy, a company will achieve the globalization or standardization of marketing and production approaches.

ANS: PTS: 1 DIF: 2 REF: 221
NAT: AACSB Analytic | Strategy TYP: F

44. A multidomestic strategy standardizes global products/advertising strategies.

ANS: PTS: 1 DIF: 2 REF: 221
NAT: AACSB Analytic | Strategy TYP: F

45. A transnational strategy seeks to achieve both global integration and national responsiveness.

ANS: PTS: 1 DIF: 1 REF: 222
NAT: AACSB Analytic | Strategy TYP: F

46. Human resources, in strategy implementation, are the ability to influence people to adopt the new behaviors need.

ANS: PTS: 1 DIF: 1 REF: 225
NAT: AACSB Analytic | Strategy TYP: F

47. In strategy implementation, leadership is the ability to influence people to adopt the new behaviors needed.

ANS: PTS: 1 DIF: 1 REF: 224
NAT: AACSB Analytic | Strategy TYP: F

48. Effective implementation is not a necessity if the strategies are truly creative.

ANS: PTS: 1 DIF: 2 REF: 223
NAT: AACSB Analytic | Strategy TYP: F

49. For successful execution, alignment of everyone in the organization must occur.

ANS: PTS: 1 DIF: 1 REF: 223-224
NAT: AACSB Analytic | Strategy TYP: F

50. Communication is one of the most important methods for effective strategy execution.

ANS: PTS: 1 DIF: 1 REF: 225
NAT: AACSB Analytic | Strategy TYP: F

51. A firms’ leadership is responsible for recruiting, selecting, training, transferring, promoting, and laying off employees.

ANS: PTS: 1 DIF: 2 REF: 225
NAT: AACSB Analytic | Strategy TYP: F

52. Strategic thinking is more important -profit businesses than for non-profit organizations.

ANS: PTS: 1 DIF: 2 REF: 202
NAT: AACSB Analytic | Strategy TYP: F

53. A director of finance would most likely be interested in executing functional level strategies.

ANS: PTS: 1 DIF: 2 REF: 202
NAT: AACSB Analytic | Strategy TYP: F

54. Business-level strategies include all of the major functions, including finance, research and development, marketing, and manufacturing.

ANS: PTS: 1 DIF: 2 REF: 207
NAT: AACSB Analytic | Strategy TYP: F

55. The final stage of the strategic management process is execution of the new strategy.

ANS: PTS: 1 DIF: 2 REF: 208
NAT: AACSB Analytic | Strategy TYP: F

56. Some companies hire competitive intelligence professionals to scan the external environment and provide data and research on relevant domestic and global trends.

ANS: PTS: 1 DIF: 2 REF: 209
NAT: AACSB Analytic | Strategy TYP: F

57. Opportunities are characteristics of the internal environment that have the potential to help the organization achieve or exceed its strategic goals.

ANS: PTS: 1 DIF: 2 REF: 210
NAT: AACSB Analytic | Strategy TYP: F

58. An SBU stands for Star Business Unit.

ANS: PTS: 1 DIF: 2 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

59. Unrelated diversification occurs when an organization expands into a totally new line of business.

ANS: PTS: 1 DIF: 2 REF: 213
NAT: AACSB Analytic | Strategy TYP: F

60. As a result of the growth of the Internet, barriers to entry into new markets are now much higher than ever before.

ANS: PTS: 1 DIF: 2 REF: 215
NAT: AACSB Analytic | Information Technologies TYP: F

61. The concentration of suppliers and the availability of substitute suppliers are significant factors in determining supplier power.

ANS: PTS: 1 DIF: 2 REF: 215
NAT: AACSB Analytic | Strategy TYP: F

62. Cost leadership firms are more likely to reward employee innovation than differentiation firms or focus firms.

ANS: PTS: 1 DIF: 2 REF: 215
NAT: AACSB Analytic | Strategy TYP: F

63. In a turbulent business climate, managers should focus on strategic stability rather than flexibility.

ANS: PTS: 1 DIF: 2 REF: 219
NAT: AACSB Analytic | Strategy TYP: F

64. A transnational strategy combines degrees of both global standardization and national responsiveness.

ANS: PTS: 1 DIF: 2 REF: 220
NAT: AACSB Analytic | Strategy TYP: F

65. A multidomestic strategy helps an organization reap efficiencies by standardizing product design and manufacturing, using common suppliers, and eliminating overlapping facilities.

ANS: PTS: 1 DIF: 2 REF: 221
NAT: AACSB Analytic | Strategy TYP: F

66. A top-down management style has been identified as a silent killer of strategy.

ANS: PTS: 1 DIF: 2 REF: 224
NAT: AACSB Analytic | Strategy TYP: F

67. For the social networking site Facebook, technological know-how and an aggressive and innovative culture are significant strengths to include in its SWOT analysis.

ANS: PTS: 1 DIF: 3 REF: 210
NAT: AACSB Analytic | Strategy TYP: A

MULTIPLE CHOICE

1. The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as
a. strategy formulation.
b. strategic planning.
c. strategic management.
d. strategy implementation.
e. strategy evaluation.

ANS: PTS: 1 DIF: 1 REF: 204
NAT: AACSB Analytic | Strategy TYP: F

2. The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is known as a(n)
a. goal.
b. objective.
c. mission.
d. vision.
e. strategy.

ANS: PTS: 1 DIF: 2 REF: 204
NAT: AACSB Analytic | Strategy TYP: F

3. Which of the following is a business activity that an organization does especially well relative to its competition?
a. Strategy
b. Synergy
c. Cash cow
d. Core competence
e. Multidomestic

ANS: PTS: 1 DIF: 1 REF: 204
NAT: AACSB Analytic | Strategy TYP: F

4. The condition that exists when the organization’s parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as
a. core competence.
b. synergy.
c. value creation.
d. business-level strategy.
e. multidomestic strategy.

ANS: PTS: 1 DIF: 1 REF: 205
NAT: AACSB Analytic | Strategy TYP: F

5. ____ can be defined as the combination of benefits received and costs paid by the customer.
a. Organizational benefits
b. Value
c. Cost-benefit diversity
d. Synergy
e. Core competence

ANS: PTS: 1 DIF: 1 REF: 205
NAT: AACSB Analytic | Strategy TYP: F

6. When properly managed, ____ can create additional value with existing resources, providing a big boost to the bottom line.
a. synergy
b. competitors
c. government contacts
d. command structure
e. cooperation among customers

ANS: PTS: 1 DIF: 2 REF: 205
NAT: AACSB Analytic | Strategy TYP: F

7. When AT&T decided to buy Media One, a cable company, it was pursuing a
a. functional-level strategy.
b. internal growth strategy.
c. multi-domestic strategy.
d. corporate-level strategy.
e. business-level strategy.

ANS: PTS: 1 DIF: 3 REF: 206
NAT: AACSB Analytic | Strategy TYP: A

8. When Philip-Morris, the tobacco giant, bought Kraft, Inc., it was pursuing a
a. corporate-level strategy.
b. business-level strategy.
c. functional-level strategy.
d. multidomestic strategy.
e. retrenchment strategy.

ANS: PTS: 1 DIF: 2 REF: 206
NAT: AACSB Analytic | Strategy TYP: A

9. Which of the following pertains to the organization as a whole?
a. Business-level strategy
b. Functional-level strategy
c. Corporate-level strategy
d. Operational-level strategy
e. Competitive-level strategy

ANS: PTS: 1 DIF: 1 REF: 206
NAT: AACSB Analytic | Strategy TYP: F

10. Sears’ decision to sell off much of its financial services division is an example of a
a. corporate-level strategy.
b. business-level strategy.
c. functional-level strategy.
d. growth strategy.
e. stability strategy.

ANS: PTS: 1 DIF: 2 REF: 206
NAT: AACSB Analytic | Strategy TYP: F

11. A corporate-level strategy is concerned with the question
a. what business are we in?
b. how do we compete?
c. how do we support our chosen strategy?
d. where do we market our products?
e. should we promote from within?

ANS: PTS: 1 DIF: 2 REF: 206
NAT: AACSB Analytic | Strategy TYP: F

12. When Coca-Cola introduced Surge, a new citrus soft-drink, what type of strategy was being pursued?
a. Functional-level strategy
b. Multi-domestic strategy
c. Corporate-level strategy
d. Retrenchment strategy
e. Business-level strategy

ANS: PTS: 1 DIF: 3 REF: 207
NAT: AACSB Analytic | Strategy TYP: A

13. Ford’s decision to completely redesign its Ford Taurus can be classified as a
a. corporate level strategy.
b. business level strategy.
c. functional level strategy.
d. retrenchment strategy.
e. stability strategy.

ANS: PTS: 1 DIF: 2 REF: 207
NAT: AACSB Analytic | Strategy TYP: A

14. Decisions regarding the proper amount of advertising for a particular good or service are related to
a. corporate-level strategies.
b. functional-level strategies.
c. tactical-level strategies.
d. business-level strategies.
e. retrenchment strategies.

ANS: PTS: 1 DIF: 2 REF: 207
NAT: AACSB Analytic | Strategy TYP: F

15. Which of these questions is central to a functional-level strategy?
a. What business are we in?
b. How do we compete?
c. How do we support our chosen strategy?
d. What business do we buy?
e. Where to market our products?

ANS: PTS: 1 DIF: 1 REF: 206
NAT: AACSB Analytic | Strategy TYP: F

16. ____ refers to the use of managerial tools to direct resources toward the achievement of strategic goals.
a. Strategy formulation
b. Strategy coordination
c. Strategy execution
d. Strategy control
e. Strategy planning

ANS: PTS: 1 DIF: 2 REF: 208
NAT: AACSB Analytic | Strategy TYP: F

17. Which of the following refers to the planning and decision making that lead to the establishment of the organization’s goals and of a specific strategic plan?
a. Strategy formulation
b. Strategy implementation
c. Strategy coordination
d. Strategy control
e. SWOT

ANS: PTS: 1 DIF: 2 REF: 208
NAT: AACSB Analytic | Strategy TYP: F

18. Fred has been assigned to conduct a SWOT analysis for his organization, Flintstones, Inc. As part of this assignment, Fred will
a. conduct an external wage survey.
b. search for the strengths, weaknesses, opportunities, and threats that impact his firm.
c. choose a grand strategy for his firm.
d. do a cost/benefit analysis.
e. develop a mission.

ANS: PTS: 1 DIF: 2 REF: 209
NAT: AACSB Analytic | Strategy TYP: A

19. Techniques used to monitor external environments include
a. hiring scanning organizations.
b. hiring the competitive intelligence professionals.
c. government reports.
d. professional journals.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 209
NAT: AACSB Analytic | Strategy TYP: F

20. Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the competition. The creativity of these employees would be classified as
a. an internal weakness.
b. an external opportunity.
c. an external strength.
d. an internal strength.
e. a neutral factor.

ANS: PTS: 1 DIF: 2 REF: 209
NAT: AACSB Analytic | Strategy TYP: A

21. Where does the information about opportunities and threats comes from?
a. An analysis of the organization’s internal environment
b. A department by department study of the organization
c. Scanning the external environments
d. Employee grievances
e. Financial ratios of the organization

ANS: PTS: 1 DIF: 2 REF: 210
NAT: AACSB Analytic | Strategy TYP: F

22. Flush Away, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as
a. an external opportunity.
b. an internal strength.
c. an external threat.
d. an external weakness.
e. a congressional chaos.

ANS: PTS: 1 DIF: 2 REF: 209
NAT: AACSB Analytic | Strategy TYP: A

23. Which of the following is NOT a strength of the social network company, Facebook?
a. A new legislation that opens the international markets
b. Technological know-how
c. An aggressive and innovative culture
d. A partnership with Microsoft
e. Work networks are exploding and older generations prefer Facebook

ANS: PTS: 1 DIF: 2 REF: 210
NAT: AACSB Analytic | Strategy TYP: F

24. How business units and product lines fit together in a logical way is the essence of
a. business-level strategy.
b. portfolio strategy.
c. competitive strategy.
d. financial strategy.
e. functional strategy.

ANS: PTS: 1 DIF: 2 REF: 211
NAT: AACSB Analytic | Strategy TYP: F

25. The BCG matrix organizes along which of the following dimensions?
a. Market share and profit
b. Sales and market share
c. Business growth rate and market share
d. Business growth rate and profit
e. Sales and profits

ANS: PTS: 1 DIF: 2 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

26. Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified as
a. a dog.
b. a star.
c. a question mark.
d. a cash cow.
e. stuck in the middle.

ANS: PTS: 1 DIF: 2 REF: 212
NAT: AACSB Analytic | Strategy TYP: A

27. Which of these is true about the cash cow?
a. It generates tremendous profits in a rapidly growing industry.
b. It has a small market share in a rapidly growing industry.
c. It has a small market share in a slow growth industry.
d. It has a large market share in a slow growth industry.
e. It is generally a dead business that should be divested.

ANS: PTS: 1 DIF: 2 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

28. The star has a
a. large market share in a rapidly growing industry.
b. large market share in a slow growth industry.
c. small market share in a rapidly growing industry.
d. small share of a slow growth market.
e. moderate market share in a slow growth industry.

ANS: PTS: 1 DIF: 2 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

29. Which of the following portfolio categories is made up of poor performers who command only a small share of a slow growth market?
a. Star
b. Cash cow
c. Question mark
d. Dog
e. Cat

ANS: PTS: 1 DIF: 1 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

30. The question mark has a
a. large market share in a rapidly growing industry.
b. large market share in a slow growth industry.
c. small market share in a rapidly growing industry.
d. small share of a slow growth market.
e. moderate market share in a slow growth industry.

ANS: PTS: 1 DIF: 2 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

31. Which of these is true about the dog division?
a. It has a large market share in a rapidly growing industry.
b. It has a large market share in a slow growth industry.
c. It has a small market share in a rapidly growing industry.
d. It has a small share of a slow growth market.
e. It has a moderate market share in a rapidly growing industry.

ANS: PTS: 1 DIF: 2 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

32. Gillette operates numerous strategic business units. Most of its units in the personal care division have low market share but high business growth. These units are classified as _____.
a. dogs
b. question marks
c. stars
d. cash cows
e. none of these

ANS: PTS: 1 DIF: 2 REF: 212
NAT: AACSB Analytic | Strategy TYP: A

33. The purpose of ________ is to expand the firm’s business operations to produce new kinds of valuable products and services?
a. retrenchment.
b. diversification.
c. liquidation.
d. cash cow.
e. internal growth.

ANS: PTS: 1 DIF: 2 REF: 213
NAT: AACSB Analytic | Strategy TYP: F

34. Which of the following strategies refers to moving into a new business that is related to the company’s existing business activities?
a. Horizontal integration
b. Vertical integration
c. Unrelated diversification
d. Related diversification
e. Strategic partnership

ANS: PTS: 1 DIF: 2 REF: 213
NAT: AACSB Analytic | Strategy TYP: F

35. According to the BCG Matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share?
a. Question mark
b. Asterisk
c. Dog
d. Star
e. Cash cow

ANS: PTS: 1 DIF: 2 REF: 212
NAT: AACSB Analytic | Strategy TYP: F

36. Barriers to entry are related to which competitive force?
a. Rivalry among competitors
b. Potential new entrants
c. Threat of substitute products
d. Bargaining power of buyers
e. Bargaining power of suppliers

ANS: PTS: 1 DIF: 2 REF: 215
NAT: AACSB Analytic | Strategy TYP: F

37. All of the following are Porter’s competitive forces EXCEPT
a. differentiation.
b. bargaining power of buyers.
c. bargaining power of suppliers.
d. threat of substitute products.
e. potential new entrants.

ANS: PTS: 1 DIF: 2 REF: 215
NAT: AACSB Analytic | Strategy TYP: F

38. Which of the following is NOT one of Porter’s competitive forces?
a. Potential new entrants
b. Bargaining power of suppliers
c. Bargaining power of stockholders
d. Bargaining power of customers
e. Rivalry among competitors

ANS: PTS: 1 DIF: 2 REF: 215
NAT: AACSB Analytic | Strategy TYP: F

39. Which of Porter’s five forces is influenced by all of the other four?
a. Threat of substitute products
b. Rivalry among competitors
c. Bargaining power of buyers
d. Potential new entrants
e. Bargaining power of suppliers

ANS: PTS: 1 DIF: 2 REF: 216
NAT: AACSB Analytic | Strategy TYP: F

40. Which of the following strategies involve an attempt to distinguish the firm’s products or services from others in the industry?
a. Cost leadership
b. Differentiation
c. Focus
d. Internal growth
e. Liquidation

ANS: PTS: 1 DIF: 2 REF: 216
NAT: AACSB Analytic | Strategy TYP: F

41. Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices?
a. Focus
b. Globalization
c. Overall cost leadership
d. Differentiation
e. Liquidation

ANS: PTS: 1 DIF: 2 REF: 216
NAT: AACSB Analytic | Strategy TYP: F

42. The ____ strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be more efficient than competitors.
a. cost leadership
b. differentiation
c. focus
d. internal growth
e. liquidation

ANS: PTS: 1 DIF: 2 REF: 216
NAT: AACSB Analytic | Strategy TYP: F

43. The human resource department at Paula’s Powerwheels is implementing a number of functional level strategies. These strategies include focusing on ways to retain and develop a stable work force and ways to improve efficiency in the organization. These functional-level strategies are consistent with which of the following strategies?
a. Overall cost leadership
b. Differentiation
c. New product development
d. New market development
e. Divestiture

ANS: PTS: 1 DIF: 2 REF: 216
NAT: AACSB Analytic | Strategy TYP: A

44. With a(n) ____ strategy, the organization concentrates on a specific regional market or buyer group.
a. cost leadership
b. differentiation
c. focus
d. internal growth
e. liquidation

ANS: PTS: 1 DIF: 2 REF: 217
NAT: AACSB Analytic | Strategy TYP: F

45. Mingles, Inc. concentrates its efforts on its target market of 18 to 25 year olds. It is using a(n) ____ strategy.
a. focus
b. differentiation
c. overall cost leadership
d. multidomestic
e. universal strategy

ANS: PTS: 1 DIF: 2 REF: 217
NAT: AACSB Analytic | Strategy TYP: A

46. If ABC International has standardized its product line throughout the world it is pursuing a
a. multidomestic strategy.
b. retrenchment strategy.
c. diversity strategy.
d. globalization strategy.
e. liquidation strategy.

ANS: PTS: 1 DIF: 2 REF: 220
NAT: AACSB Analytic | Strategy TYP: A

47. The assumption that a single global market exists would lead to a
a. globalization strategy.
b. multidomestic strategy.
c. diversity strategy.
d. domestic strategy.
e. liquidation strategy.

ANS: PTS: 1 DIF: 2 REF: 220
NAT: AACSB Analytic | Strategy TYP: F

48. Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is low?
a. Globalization
b. Multidomestic
c. Export
d. Transnational
e. Import

ANS: PTS: 1 DIF: 2 REF: 220
NAT: AACSB Analytic | Strategy TYP: F

49. ____ refers to the modification of product design and advertising strategies to suit the specific needs of individual countries.
a. Domestic strategy
b. Global strategy
c. Transnational strategy
d. Multidomestic strategy
e. Market design strategy

ANS: PTS: 1 DIF: 1 REF: 221
NAT: AACSB Analytic | Strategy TYP: F

50. Which of the following refers to a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries?
a. Domestic strategy
b. Global strategy
c. Transnational strategy
d. Multidomestic strategy
e. Region design strategy

ANS: PTS: 1 DIF: 1 REF: 222
NAT: AACSB Analytic | Strategy TYP: F

51. Some people argue that ____ is the most difficult and most important part of strategic management.
a. SWOT analysis
b. strategic formation
c. strategic execution
d. strategic analysis
e. strategy evaluation

ANS: PTS: 1 DIF: 2 REF: 223
NAT: AACSB Analytic | Strategy TYP: F

52. Persuasion, motivation, and changes in cultures and values are examples of which of the dimensions used to implement strategy?
a. Leadership
b. Structural design
c. Human resources
d. Information and control systems
e. Compensation

ANS: PTS: 1 DIF: 1 REF: 224
NAT: AACSB Analytic | Strategy TYP: F

53. Which of the following is NOT one of the tools used for putting strategy into action?
a. Visible leadership
b. Diversification
c. Human Resources
d. Communication
e. Clear roles and accountability

ANS: PTS: 1 DIF: 2 REF: 225
NAT: AACSB Analytic | Strategy TYP: F

54. The ____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals.
a. production
b. leadership
c. information and control systems
d. structural design
e. human resource

ANS: PTS: 1 DIF: 2 REF: 225
NAT: AACSB Analytic | Strategy TYP: F

55. To remain competitive, companies should develop strategies that focus on core competencies, providing synergy, and creating value for:
a. Customers
b. Suppliers
c. Stockholders
d. Employees
e. Board members

ANS: PTS: 1 DIF: 2 REF: 204
NAT: AACSB Analytic | Strategy TYP: F

56. After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon?
a. Strategy execution
b. Portfolio strategy
c. Core competency
d. Synergy
e. Delivering value

ANS: PTS: 1 DIF: 3 REF: 206
NAT: AACSB Analytic | Strategy TYP: A

57. Janessa is the CEO of a privately-held software company. In defining corporate-level strategies, which of the following questions would she most likely be concerned with?
a. How do we compete?
b. What business are we in?
c. How does marketing support the business?
d. How can we maximize profits?
e. How can we make manufacturing processes more efficient?

ANS: PTS: 1 DIF: 3 REF: 206
NAT: AACSB Analytic | Strategy TYP: A

58. ________-level strategy pertains to the major functional departments within the business unit.
a. Operational
b. Corporate
c. National
d. Business
e. Functional

ANS: PTS: 1 DIF: 1 REF: 207
NAT: AACSB Analytic | Strategy TYP: F

59. Which of the following lists the strategic management process in proper order?
a. Formulate strategy; Evaluate strategy; Perform SWOT analysis; Define new mission/goals; Execute strategy; Control strategy
b. Perform SWOT analysis; Evaluate current mission/goals; Formulate strategy; Execute strategy; Define new mission/goals
c. Evaluate current mission/goals; Define new mission/goals; Formulate strategy; Execute strategy; Perform SWOT analysis
d. Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy
e. Define new mission/goals; Execute strategy; Formulate strategy; Evaluate new mission/goals; Perform SWOT analysis

ANS: PTS: 1 DIF: 3 REF: 208
NAT: AACSB Analytic | Strategy TYP: F

60. Sherri has been asked to participate on a cross-functional task force that is charged with performing an audit checklist for her advertising firm. The task force will analyze organizational strengths and weaknesses as they apply to the firm. Sherri’s task is to analyze management quality, staff quality, degree of centralization, and organizational charts. This level of analysis pertains to which area of the audit?
a. Management and organization
b. Marketing
c. Human resources
d. Research and development
e. Production

ANS: PTS: 1 DIF: 3 REF: 209
NAT: AACSB Analytic | Strategy TYP: A

61. What type of organizational unit has a unique business mission, product line, competitors, and markets relative to other units in the same corporation?
a. Product unit
b. Functional unit
c. Strategic business unit
d. Operational unit
e. Business consulting group unit

ANS: PTS: 1 DIF: 2 REF: 211
NAT: AACSB Analytic | Strategy TYP: F

62. Gatekeep Utilities is a subsidiary of GW Enterprises. Gatekeep has a mission and product line that is unique from GW. Gatekeep’s competitors are also very different from those of its parent, and the subsidiary markets to a very different group of customers. As such, Gatekeep can be described as a(n):
a. Product unit
b. Functional unit
c. Operational unit
d. Strategic business unit
e. Boston consulting group unit

ANS: PTS: 1 DIF: 3 REF: 211
NAT: AACSB Analytic | Strategy TYP: A

63. When an organization expands into a totally new line of business, it is implementing a strategy of:
a. Related diversification
b. Unrelated diversification
c. Cross-functional diversification
d. Product line diversification
e. Industry diversification

ANS: PTS: 1 DIF: 2 REF: 213
NAT: AACSB Analytic | Strategy TYP: F

64. Semway, a regional bank, recently announced that it would soon begin offering financial planning services. This is an example of which of these?
a. Related diversification
b. Unrelated diversification
c. Cross-functional diversification
d. Product line diversification
e. Industry diversification

ANS: PTS: 1 DIF: 3 REF: 213
NAT: AACSB Analytic | Strategy TYP: A

65. Which of the following is true regarding the impact of the Internet on Porter’s Five Forces affecting industry competition?
a. Internet increases barriers to entry
b. Internet decreases bargaining power of suppliers
c. Internet shifts power away from end customers
d. Internet cuts down on substitute product threats
e. Internet blurs differences among competitors

ANS: PTS: 1 DIF: 2 REF: 215
NAT: AACSB Analytic | Strategy TYP: F

66. Sugar manufacturers have been steadily losing business as a result of increasing use of high-fructose corn syrup in processed foods. However, sugar sales are beginning to increase again in recent months. This example most closely demonstrates which of Porter’s Five Forces?
a. Bargaining power of suppliers
b. Bargaining power of consumers
c. Rivalry among competitors
d. Threat of new entrants
e. Threat of new substitutes

ANS: PTS: 1 DIF: 3 REF: 216
NAT: AACSB Analytic | Strategy TYP: A

67. General Products Inc. is a small clothing designer and manufacturer located in the United States. A vast majority of the company’s revenues comes from U.S. sales, although about ten percent of the company’s revenue come from sales to Canada. General Products Inc. can best be described as using which global corporate strategy?
a. Globalization strategy
b. Multidomestic strategy
c. Export strategy
d. Transnational strategy
e. Domestic strategy

ANS: PTS: 1 DIF: 3 REF: 221
NAT: AACSB Analytic | Strategy TYP: A

68. FLY Industries is a global conglomerate company headquartered in the United States that does business in over fifty countries. The company seeks to balance global efficiencies and local responsiveness by hiring locally as well as from home. It can best be described as using which global corporate strategy?
a. Globalization strategy
b. Multidomestic strategy
c. Export strategy
d. Transnational strategy
e. Domestic strategy

ANS: PTS: 1 DIF: 3 REF: 221
NAT: AACSB Analytic | Strategy TYP: A

69. People need to understand how their individual actions can contribute to achieving an organizational strategy. This can be accomplished by delegating authority, creating teams, and defining roles. These actions are part of which tool for putting strategy into action?
a. Visible leadership
b. Candid communication
c. Human resources
d. Clear roles and accountability
e. Bargaining power of employees

ANS: PTS: 1 DIF: 2 REF: 225
NAT: AACSB Analytic | Strategy TYP: F

CASE

Scenario – Theresa Teutul

Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions. She recognized that the color television market in the late 1970’s was facing significant challenges. After two decades of highly successful development and marketing, the sales of color televisions had slowed and replacing older color television sets largely created her market.

1. Using the logic of the BCG grid, Theresa should recognize that her strategic business unit was in which quadrant?
a. Star
b. Cash Cow
c. Question Mark
d. Dog
e. None of these

ANS:

PTS: 1 DIF: 2 REF: 212 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A

2. The strategy that the BCG matrix suggests that Theresa should take for this SBU is
a. invest and grow.
b. liquidate while still profitable.
c. ask her astrologer for advice.
d. keep the SBU healthy and use its excess earnings to invest in other SBU’s.
e. divestiture.

ANS:

PTS: 1 DIF: 2 REF: 212 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A

3. Which one of the following is not one of the competitive forces that Porter recommends that Theresa should recognize?
a. Potential new entrants
b. Bargaining power of buyers
c. Threat of substitute products
d. Bargaining power of suppliers
e. All of these are competitive forces.

ANS:

PTS: 1 DIF: 2 REF: 215-216 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A

Scenario – SS.com

Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.

4. Swift Stock’s traditional brokerage business could be classified as a
a. cash cow.
b. dog.
c. star.
d. question mark.
e. stuck in the middle business.

ANS:

PTS: 1 DIF: 2 REF: 212 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A

5. SS.com subsidiary for Swift Stocks can be classified as a
a. cash cow.
b. dog.
c. star.
d. question mark.
e. stuck in the middle business.

ANS:

PTS: 1 DIF: 2 REF: 212 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A

6. If Swift Stock’s traditional brokerage business were to face a declining business growth, it may need to be reclassified as a
a. cash cow.
b. dog.
c. star.
d. question mark.
e. dead business.

ANS:

PTS: 1 DIF: 2 REF: 212 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A

7. Swift Stock is following which strategy, according to Porter, through the .com subsidiary?
a. Stability
b. Cost leadership
c. Focus
d. Differentiation
e. Retrenchment

ANS:

PTS: 1 DIF: 2 REF: 216 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: F

COMPLETION

1. ____________________ is the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.

ANS:

PTS: 1 DIF: 2 REF: 204 NAT: AACSB Analytic | Strategy
TYP: F

2. The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is called a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 204 NAT: AACSB Analytic | Strategy
TYP: F

3. A business activity that an organization does particularly well relative to its competition is known as a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 204 NAT: AACSB Analytic | Strategy
TYP: F

4. When organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone, ____________________ occurs.

ANS:

PTS: 1 DIF: 2 REF: 205 NAT: AACSB Analytic | Strategy
TYP: F

5. The question What business are we in? concerns ____________________ strategy.

ANS:

PTS: 1 DIF: 2 REF: 206 NAT: AACSB Analytic | Strategy
TYP: F

6. The question How do we compete? concerns ____________________ strategy.

ANS

PTS: 1 DIF: 2 REF: 206 NAT: AACSB Analytic | Strategy
TYP: F

7. The question How do we support the business-level competitive strategy? concerns ____________________ strategy.

ANS:

PTS: 1 DIF: 2 REF: 206 NAT: AACSB Analytic | Strategy
TYP: F

8. ____________________ includes the planning and decision making that lead to the establishment of the firm’s goals and the development of a specific strategic plan.

ANS:

PTS: 1 DIF: 2 REF: 208 NAT: AACSB Analytic | Strategy
TYP: F

9. The use of managerial and organizational tools to direct resources toward accomplishing strategic results is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 208 NAT: AACSB Analytic | Strategy
TYP: F

10. ____________________ is a type of corporate-level strategy that pertains to the organization’s mix of strategic business units.

ANS:

PTS: 1 DIF: 2 REF: 211 NAT: AACSB Analytic | Strategy
TYP: F

11. In the BCG matrix, the dog has ____________________ market share and ____________________ business growth rate.

ANS:

PTS: 1 DIF: 2 REF: 212 NAT: AACSB Analytic | Strategy
TYP: F

12. The acquisition of a business that is related to current product lines or that takes the corporation into new areas is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 213 NAT: AACSB Analytic | Strategy
TYP: F

13. In the BCG matrix, the star has a(n) ____________________ market share in a rapidly growing industry.

ANS:

PTS: 1 DIF: 2 REF: 212 NAT: AACSB Analytic | Strategy
TYP: F

14. The ____________________ strategy involves an attempt to distinguish the firm’s products or services from others in the industry.

ANS:

PTS: 1 DIF: 2 REF: 216 NAT: AACSB Analytic | Strategy
TYP: F

15. With a(n) ____________________ strategy, the organization aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors.

ANS:

PTS: 1 DIF: 2 REF: 216 NAT: AACSB Analytic | Strategy
TYP: F

16. With a(n) ____________________ strategy, the organization concentrates on a specific regional market or buyer group.

ANS:

PTS: 1 DIF: 2 REF: 217 NAT: AACSB Analytic | Strategy
TYP: F

17. The ____________________ is driving and supporting the move toward partnership thinking.

ANS:

PTS: 1 DIF: 2 REF: 220 NAT: AACSB Analytic | Strategy
TYP: F

18. The standardization of product design and advertising strategies throughout the world is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 220 NAT: AACSB Analytic | Strategy
TYP: F

19. When an organization chooses a(n) ____________________ strategy, it means that business decisions such as product design are made on a country-by-country basis.

ANS:

PTS: 1 DIF: 2 REF: 221 NAT: AACSB Analytic | Strategy
TYP: F

20. A(n) ____________________ strategy seeks to achieve both global integration and national responsiveness.

ANS:

PTS: 1 DIF: 2 REF: 222 NAT: AACSB Analytic | Strategy
TYP: F

21. The ability to influence people to adopt the new behaviors needed for strategy implementation is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 224 NAT: AACSB Analytic | Strategy
TYP: F

22. It is argued that ____________________ is the most difficult and most important part of strategic management.

ANS:

PTS: 1 DIF: 2 REF: 223 NAT: AACSB Analytic | Strategy
TYP: F

SHORT ANSWER

1. List the three global corporate strategies.

ANS:

PTS: 1 DIF: 2 REF: 221 NAT: AACSB Analytic | Strategy
TYP: F

2. List the four components of a SWOT analysis.

ANS:

PTS: 1 DIF: 2 REF: 209 NAT: AACSB Analytic | Strategy
TYP: F

3. List Porter’s competitive forces.

ANS:

PTS: 1 DIF: 2 REF: 215 NAT: AACSB Analytic | Strategy
TYP: F

ESSAY

1. Name and describe the three types of global strategies.

ANS:

PTS: 1 DIF: 2 REF: 220-222 NAT: AACSB Analytic | Strategy
TYP: F

2. Compare and contrast the three levels of strategy in an organization.

ANS:

PTS: 1 DIF: 2 REF: 206-207 NAT: AACSB Analytic | Strategy
TYP: F

3. In order for companies to remain competitive, their strategies must focus on three things. Describe these three focuses.

ANS:

PTS: 1 DIF: 2 REF: 204-205 NAT: AACSB Analytic | Strategy
TYP: F

4. Differentiate between strategy formulation and strategy implementation.

ANS:

PTS: 1 DIF: 2 REF: 208 NAT: AACSB Analytic | Strategy
TYP: F

5. Briefly describe the Boston Consulting Group matrix, including its dimensions, quadrants, and strategic recommendations.

ANS:

PTS: 1 DIF: 3 REF: 212 NAT: AACSB Analytic | Strategy
TYP: F

6. Briefly describe the five competitive forces identified by Michael E. Porter.

ANS:

PTS: 1 DIF: 2 REF: 215-216 NAT: AACSB Analytic | Strategy
TYP: F

7. Briefly discuss Porter’s three competitive strategies.

ANS:

PTS: 1 DIF: 2 REF: 216-217 NAT: AACSB Analytic | Strategy
TYP: F

8. Briefly describe the tools for putting strategy into action.

ANS:

PTS: 1 DIF: 2 REF: 215 NAT: AACSB Analytic | Strategy
TYP: F
Chapter 9—Managerial Decision Making

TRUE/FALSE

1. Decision making is easy, given that everybody makes decisions everyday.

ANS: PTS: 1 DIF: 1 REF: 232
NAT: AACSB Analytic | Individual Dynamics TYP: F

2. Decision-making must not be done amid ever-changing factors, unclear information, and conflicting points of view.

ANS: PTS: 1 DIF: 1 REF: 232
NAT: AACSB Analytic | Strategy TYP: F

3. A decision is a choice made from available alternatives.

ANS: PTS: 1 DIF: 1 REF: 232
NAT: AACSB Analytic | Strategy TYP: F

4. Programmed decisions are decisions that are made for situations that have occurred often in the past and allow decision rules to be developed to guide future decisions.

ANS: PTS: 1 DIF: 2 REF: 232
NAT: AACSB Analytic | Strategy TYP: F

5. Two classifications of management decisions are programmed and structured.

ANS: PTS: 1 DIF: 1 REF: 232
NAT: AACSB Analytic | Strategy TYP: F

6. Two employees in Stacey’s department quit which is normal for her department. She is faced with the decision to fill these positions. This would be considered a nonprogrammed decision.

ANS: PTS: 1 DIF: 2 REF: 233
NAT: AACSB Analytic | Individual Dynamics TYP: A

7. Gerald’s Groceries and Marty’s Market decided to merge their operations. This would be considered a nonprogrammed decision.

ANS: PTS: 1 DIF: 3 REF: 233
NAT: AACSB Analytic | Creation of Value TYP: F

8. WorldCom, a telecommunications company, decided to buy Skytel in 1999. This would be considered a programmed decision.

ANS: PTS: 1 DIF: 2 REF: 233
NAT: AACSB Analytic | Creation of Value TYP: F

9. Uncertainty means that a decision has clear-cut goals, and that good information is available, but the future outcomes associated with each alternative are subject to chance.

ANS: PTS: 1 DIF: 2 REF: 234
NAT: AACSB Analytic | Strategy TYP: F

10. The main difference between risk and uncertainty is that with risk you know the probabilities of the outcomes.

ANS: PTS: 1 DIF: 2 REF: 234
NAT: AACSB Analytic | Strategy TYP: F

11. Uncertainty is by far the most difficult decision situation.

ANS: PTS: 1 DIF: 2 REF: 235
NAT: AACSB Analytic | Strategy TYP: F

12. A situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable refers to ambiguity.

ANS: PTS: 1 DIF: 1 REF: 235
NAT: AACSB Analytic | Strategy TYP: F

13. The classical decision making model assumes that the decision-maker is rational, and makes the optimal decision each time.

ANS: PTS: 1 DIF: 1 REF: 236
NAT: AACSB Analytic | Strategy TYP: F

14. Normative means it defines how a decision maker should make decisions.

ANS: PTS: 1 DIF: 2 REF: 236
NAT: AACSB Analytic | Strategy TYP: F

15. The political model represents an “ideal” model of decision making that is often unattainable by real people in real organizations.

ANS: PTS: 1 DIF: 2 REF: 236
NAT: AACSB Analytic | Strategy TYP: F

16. The administrative model of decision making describes how managers actually make decisions in difficult situations.

ANS: PTS: 1 DIF: 2 REF: 237
NAT: AACSB Analytic | Strategy TYP: F

17. Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality.

ANS: PTS: 1 DIF: 2 REF: 236
NAT: AACSB Analytic | Strategy TYP: F

18. Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist.

ANS: PTS: 1 DIF: 1 REF: 237
NAT: AACSB Analytic | Strategy TYP: F

19. The administrative model is considered to be normative.

ANS: PTS: 1 DIF: 2 REF: 237
NAT: AACSB Analytic | Strategy TYP: F

20. Goals often are vague, conflicting, and lack consensus among managers, according to the administrative model of decision making.

ANS: PTS: 1 DIF: 1 REF: 238
NAT: AACSB Analytic | Strategy TYP: F

21. According to the administrative model of decision making, managers’ searches for alternatives are limited because of human, information, and resource constraints.

ANS: PTS: 1 DIF: 1 REF: 237
NAT: AACSB Analytic | Strategy TYP: F

22. Intuition is a quick apprehension of a decision situation based on past experience but without conscious thought.

ANS: PTS: 1 DIF: 1 REF: 238
NAT: AACSB Analytic | Strategy TYP: F

23. According to both research and managerial experience, intuitive decisions are best and always work out.

ANS: PTS: 1 DIF: 1 REF: 239
NAT: AACSB Analytic | Strategy TYP: F

24. Managers need to take a balanced approach for effective decision making.

ANS: PTS: 1 DIF: 1 REF: 239
NAT: AACSB Analytic | Strategy TYP: F

25. Linear means to use primarily intuition to make decisions; nonlinear means using logical rationality to make decisions.

ANS: PTS: 1 DIF: 1 REF: 239
NAT: AACSB Analytic | Strategy TYP: F

26. The process of forming alliances among managers is called coalition building.

ANS: PTS: 1 DIF: 1 REF: 240
NAT: AACSB Analytic | Strategy TYP: F

27. The administrative model closely resembles the real environment in which most managers and decision makers operate.

ANS: PTS: 1 DIF: 2 REF: 240
NAT: AACSB Analytic | Strategy TYP: F

28. The political model consists of vague problems and goals, limited information about alternatives and their outcomes, and a satisficing choice for resolving problems using intuition.

ANS: PTS: 1 DIF: 3 REF: 240
NAT: AACSB Analytic | Strategy TYP: F

29. Nonprogrammed decisions require six steps, however, programmed decisions being structured and well understood require only one step.

ANS: PTS: 1 DIF: 2 REF: 241
NAT: AACSB Analytic | Strategy TYP: F

30. Managers confront a decision requirement in the form of either a problem or an opportunity.

ANS: PTS: 1 DIF: 2 REF: 241
NAT: AACSB Analytic | Strategy TYP: F

31. Once the problem or opportunity has been recognized and analyzed, the decision-maker should implement the alternative.

ANS: PTS: 1 DIF: 2 REF: 242
NAT: AACSB Analytic | Strategy TYP: F

32. Step one in the managerial decision-making process is recognition of decision requirement.

ANS: PTS: 1 DIF: 2 REF: 242
NAT: AACSB Analytic | Strategy TYP: F

33. For a non-programmed decision, feasible alternatives are hard to identify and in fact are already available within the organization’s rules and procedures.

ANS: PTS: 1 DIF: 2 REF: 243
NAT: AACSB Analytic | Strategy TYP: F

34. For decisions made under conditions of low uncertainty, managers may develop only one or two custom solutions that will satisfice for handling the problem.

ANS: PTS: 1 DIF: 2 REF: 243
NAT: AACSB Analytic | Strategy TYP: F

35. The best alternative is the one in which the solution best fits the overall goals and values of the organization and achieves the desired results using the fewest resources.

ANS: PTS: 1 DIF: 2 REF: 243
NAT: AACSB Analytic | Strategy TYP: F

36. The formulation stage involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out.

ANS: PTS: 1 DIF: 2 REF: 244
NAT: AACSB Analytic | Strategy TYP: F

37. Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff.

ANS: PTS: 1 DIF: 1 REF: 243
NAT: AACSB Analytic | Strategy TYP: F

38. Feedback provides decision-makers with information that can precipitate a new decision cycle.

ANS: PTS: 1 DIF: 2 REF: 244-245
NAT: AACSB Analytic | Strategy TYP: F

39. In the implementation stage, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals.

ANS: PTS: 1 DIF: 2 REF: 244
NAT: AACSB Analytic | Strategy TYP: F

40. Feedback is the part of monitoring that assesses whether a new decision needs to made.

ANS: PTS: 1 DIF: 2 REF: 245
NAT: AACSB Analytic | Strategy TYP: F

41. People who prefer simple, clear-cut solutions to problems use the directive style.

ANS: PTS: 1 DIF: 1 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F

42. Managers with an analytical decision style like to consider complex solutions based on as much data as they can gather.

ANS: PTS: 1 DIF: 1 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F

43. The behavioral style is often adopted by managers who like to consider complex solutions based on as much data as they can gather.

ANS: PTS: 1 DIF: 1 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F

44. The most effective managers are consistent in using their own decision style rather than shifting among styles.

ANS: PTS: 1 DIF: 2 REF: 247
NAT: AACSB Analytic | Strategy TYP: F

45. Most bad decisions are errors in judgment that originate in the human mind’s limited capacity and in the natural biases of the manager.

ANS: PTS: 1 DIF: 2 REF: 247
NAT: AACSB Analytic | Individual Dynamics TYP: F

46. Justifying past decisions is a common bias of managers.

ANS: PTS: 1 DIF: 1 REF: 247
NAT: AACSB Analytic | Individual Dynamics TYP: F

47. The rapid pace of today’s business environment requires only top management to make decisions and have the information, skills, and freedom they need to respond immediately to problems and questions.

ANS: PTS: 1 DIF: 2 REF: 250
NAT: AACSB Analytic | Strategy TYP: F

48. Most people underestimate their ability to predict uncertain outcomes.

ANS: PTS: 1 DIF: 1 REF: 248
NAT: AACSB Analytic | Individual Dynamics TYP: F

49. Brainstorming uses a face-to-face interactive group to spontaneously suggest a wide range of alternatives for decision making.

ANS: PTS: 1 DIF: 2 REF: 250
NAT: AACSB Analytic | Group Dynamics TYP: F

50. Interestingly, major decisions in the business world are commonly made by an individual.

ANS: PTS: 1 DIF: 2 REF: 250
NAT: AACSB Analytic | Group Dynamics TYP: F

51. Devil’s advocate technique is similar to brainstorming in that both techniques prevent individuals from challenging other group member’s assumptions.

ANS: PTS: 1 DIF: 2 REF: 250
NAT: AACSB Analytic | Group Dynamics TYP: F

52. Brainwriting refers to the tendency of people in groups to suppress contrary opinions.

ANS: PTS: 1 DIF: 2 REF: 250
NAT: AACSB Analytic | Group Dynamics TYP: F

53. Point-counterpoint is a decision-making technique in which people are assigned to express competing points of view.

ANS: PTS: 1 DIF: 2 REF: 251
NAT: AACSB Analytic | Strategy TYP: F

54. Decision making involves effort both before and after the actual choice.

ANS: PTS: 1 DIF: 2 REF: 232
NAT: AACSB Analytic | Strategy TYP: F

55. Making a choice is the most significant part of the decision-making process.

ANS: PTS: 1 DIF: 2 REF: 232
NAT: AACSB Analytic | Strategy TYP: F

56. In the real world, few decisions are certain.

ANS: PTS: 1 DIF: 2 REF: 234
NAT: AACSB Analytic | Strategy TYP: F

57. A highly ambiguous situation can create what is sometimes called a wicked decision problem.

ANS: PTS: 1 DIF: 2 REF: 235
NAT: AACSB Analytic | Strategy TYP: F

58. The approach that managers use to make decisions usually falls into one of three types – the classical model, the administrative model, and the political model.

ANS: PTS: 1 DIF: 2 REF: 236
NAT: AACSB Analytic | Strategy TYP: F

59. The growth of quantitative decision techniques that use computers has reduced the use of the classical approach.

ANS: PTS: 1 DIF: 2 REF: 237
NAT: AACSB Analytic | Strategy TYP: F

60. According to the classical model of decision making, managers’ searches for alternatives are limited because of human, information, and resource constraints.

ANS: PTS: 1 DIF: 2 REF: 238
NAT: AACSB Analytic | Strategy TYP: F

61. Good intuitive decision making is based on an ability to recognize patterns at lightning speed.

ANS: PTS: 1 DIF: 2 REF: 238
NAT: AACSB Analytic | Strategy TYP: F

62. The classical model of decision-making works best in organizations that are made up of groups with diverse interests, goals, and values.

ANS: PTS: 1 DIF: 2 REF: 240
NAT: AACSB Analytic | Strategy TYP: F

63. Administrative and political decision making procedures and intuition have been associated with high performance in unstable environments in which decisions must be made rapidly and under more difficult conditions.

ANS: PTS: 1 DIF: 2 REF: 240
NAT: AACSB Analytic | Strategy TYP: F

64. Managers should be asking questions such as “What is the urgency of the problem?” during the development of alternatives stage of managerial decision-making.

ANS: PTS: 1 DIF: 2 REF: 243
NAT: AACSB Analytic | Strategy TYP: F

65. Individuals with a conceptual decision-making style are more socially oriented than those with an analytical style.

ANS: PTS: 1 DIF: 2 REF: 246
NAT: AACSB Analytic | Strategy TYP: F

66. When managers look for information that supports their existing instinct or point of view, avoiding information that contradicts it, they are justifying past decisions.

ANS: PTS: 1 DIF: 2 REF: 247
NAT: AACSB Analytic | Strategy TYP: F

67. Studies show that electronic brainstorming generates about 20 percent fewer ideas than traditional brainstorming.

ANS: PTS: 1 DIF: 2 REF: 250
NAT: AACSB Analytic | Group Dynamics TYP: F

68. Groupthink refers to the tendency of people in groups to suppress contrary opinions.

ANS: PTS: 1 DIF: 2 REF: 251
NAT: AACSB Analytic | Group Dynamics TYP: F

69. One area where speed is not particularly crucial is when an organization faces a crisis.

ANS: PTS: 1 DIF: 2 REF: 252
NAT: AACSB Analytic | Strategy TYP: F

MULTIPLE CHOICE

1. Managers are often referred to as
a. decision makers.
b. peace makers.
c. conflict creators.
d. unnecessary layer of employees.
e. profit suppressor.

ANS: PTS: 1 DIF: 1 REF: 231
NAT: AACSB Analytic | Individual Dynamics TYP: F

2. ____ is a vital part of good management because decisions determine how the organization solves its problems, allocates resources, and accomplishes its goals.
a. Organizing
b. Competitive visioning
c. Proper alignment
d. Good decision making
e. Leadership

ANS: PTS: 1 DIF: 1 REF: 232
NAT: AACSB Analytic | Strategy TYP: F

3. Which of the following is a choice made from available alternatives?
a. Decision
b. Plan
c. Goal
d. Tactic
e. Strategy

ANS: PTS: 1 DIF: 1 REF: 232
NAT: AACSB Analytic | Strategy TYP: F

4. Choosing between a differentiation strategy and an overall cost leadership strategy is an example of
a. a plan.
b. an objective.
c. an alternative.
d. a decision.
e. a strategy.

ANS: PTS: 1 DIF: 2 REF: 232
NAT: AACSB Analytic | Creation of Value TYP: F

5. Mark, a production manager at Kaylie’s Kookware, recently chose to schedule his workers to work overtime. His alternative was to hire more workers. He is now monitoring the consequences of his choice. This is an example of
a. planning.
b. decision-making.
c. organizing.
d. controlling.
e. leading.

ANS: PTS: 1 DIF: 2 REF: 232
NAT: AACSB Analytic | Creation of Value TYP: A

6. ____ refers to the process of identifying problems and then resolving them.
a. Organizing
b. Controlling
c. Decision-making
d. Planning
e. Leading

ANS: PTS: 1 DIF: 1 REF: 232
NAT: AACSB Analytic | Strategy TYP: F

7. ____ decisions are associated with decision rules.
a. Nonprogrammed
b. Unique
c. Programmed
d. Ill-structured
e. Novel

ANS: PTS: 1 DIF: 1 REF: 232
NAT: AACSB Analytic | Strategy TYP: F

8. Programmed decisions are made in response to ____ organizational problems.
a. unusual
b. recurring
c. significant
d. minor
e. unique

ANS: PTS: 1 DIF: 2 REF: 232
NAT: AACSB Analytic | Strategy TYP: F

9. Bierderlack has a policy that states that more than three absences in a six-month period shall result in a suspension. Colleen, the manager, has just decided to suspend one of her shift employees for violating this policy. This is an example of
a. a programmed decision.
b. a nonprogrammed decision.
c. an insignificant decision.
d. poor management.
e. personal grudge.

ANS: PTS: 1 DIF: 2 REF: 232
NAT: AACSB Analytic | Strategy TYP: A

10. Nordstrom Department store’s “No questions asked – Return’s Policy” is an example of a(n)
a. programmed decision.
b. nonprogrammed decision.
c. novel decision.
d. poor management.
e. unstructured decision.

ANS: PTS: 1 DIF: 2 REF: 232
NAT: AACSB Analytic | Creation of Value TYP: A

11. If your instructor has an attendance policy, she/he is using a(n)
a. programmed decision.
b. unique approach.
c. condition of ambiguity.
d. nonprogrammed decision.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 232
NAT: AACSB Analytic | Individual Dynamics TYP: F

12. Nonprogrammed decisions are made in response to situations that are
a. unique.
b. unstructured.
c. important to the organization.
d. all of these
e. unique and important to the organization.

ANS: PTS: 1 DIF: 1 REF: 233
NAT: AACSB Analytic | Strategy TYP: F

13. Examples of nonprogrammed decisions would include the decision to
a. reorder supplies.
b. develop a new product or service.
c. perform routine maintenance on one of the machines in manufacturing.
d. terminate an employee for violation of company rules.
e. fill a position.

ANS: PTS: 1 DIF: 2 REF: 233
NAT: AACSB Analytic | Strategy TYP: F

14. Good examples of ____ decisions are strategic decisions.
a. nonprogrammed
b. programmed
c. insignificant
d. recurring
e. structured

ANS: PTS: 1 DIF: 2 REF: 233
NAT: AACSB Analytic | Strategy TYP: F

15. When a small community hospital decides to add a radiation therapy unit, it is considered a
a. programmed decision.
b. structured decision.
c. nonprogrammed decision.
d. poor management decision.
e. certainty decision.

ANS: PTS: 1 DIF: 2 REF: 233
NAT: AACSB Analytic | Creation of Value TYP: F

16. Two area banks, Bank A and Bank B, decided to merge their operations. This is an example of a
a. programmed decision.
b. nonprogrammed decision.
c. decision rule.
d. structured decision.
e. bad community decision.

ANS: PTS: 1 DIF: 2 REF: 233
NAT: AACSB Analytic | Creation of Value TYP: A

17. Associated with the condition of ____ is the lowest possibility of failure.
a. ambiguity
b. uncertainty
c. certainty
d. risk
e. all of these

ANS: PTS: 1 DIF: 2 REF: 234
NAT: AACSB Analytic | Strategy TYP: F

18. Which of the following means that all the information the decision-maker needs is fully available?
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. None of these

ANS: PTS: 1 DIF: 2 REF: 234
NAT: AACSB Analytic | Strategy TYP: F

19. Under conditions of ____, statistical analyses are useful.
a. certainty
b. ambiguity
c. risk
d. uncertainty
e. conflict

ANS: PTS: 1 DIF: 2 REF: 234
NAT: AACSB Analytic | Strategy TYP: F

20. Which of the following means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance?
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. Brainstorming

ANS: PTS: 1 DIF: 2 REF: 234
NAT: AACSB Analytic | Strategy TYP: F

21. ____ means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete.
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. Advocacy

ANS: PTS: 1 DIF: 2 REF: 234
NAT: AACSB Analytic | Strategy TYP: F

22. Bobby, a product manager, wants to increase the market share of his product. He is unsure about how to go about it, not knowing for sure how costs, price, the competition, and the quality of his product will interact to influence market share. Bobby is operating under a condition of
a. risk.
b. ambiguity.
c. certainty.
d. uncertainty.
e. brainstorming.

ANS: PTS: 1 DIF: 2 REF: 234
NAT: AACSB Analytic | Strategy TYP: A

23. When managers know which goals they wish to achieve, but information about alternatives and future events is incomplete, the condition of ____ exists.
a. risk
b. uncertainty
c. ambiguity
d. certainty
e. problematic

ANS: PTS: 1 DIF: 2 REF: 234
NAT: AACSB Analytic | Strategy TYP: F

24. ____ has the highest possibility of failure.
a. The condition of certainty
b. The condition of ambiguity
c. The condition of uncertainty
d. The condition of risk
e. All of these

ANS: PTS: 1 DIF: 1 REF: 234
NAT: AACSB Analytic | Strategy TYP: F

25. ____ is by far the most difficult situation for a decision-maker.
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. Brainstorming

ANS: PTS: 1 DIF: 2 REF: 235
NAT: AACSB Analytic | Strategy TYP: F

26. Which of the following means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable?
a. Certainty
b. Risk
c. Uncertainty
d. Ambiguity
e. Brainstorming

ANS: PTS: 1 DIF: 2 REF: 235
NAT: AACSB Analytic | Strategy TYP: F

27. The condition under which ambiguity occurs is when:
a. alternatives are difficult to define.
b. objectives are well defined.
c. information about outcomes is readily available.
d. all the alternatives are known.
e. decisions are already made.

ANS: PTS: 1 DIF: 2 REF: 235
NAT: AACSB Analytic | Strategy TYP: F

28. The classical model of decision making is based on ____ assumptions.
a. philosophical
b. irrational
c. economic
d. uncertainty
e. technological

ANS: PTS: 1 DIF: 2 REF: 236
NAT: AACSB Analytic | Strategy TYP: F

29. Riley is a manager at the Tinker Tools. She is expected to make decisions that are in the organization’s best economic interests. Her decisions should be based on which of the following models?
a. The administrative model of decision making
b. The garbage can model of decision making
c. The scientific management model of decision making
d. The classical model of decision making
e. The humanistic model of decision making

ANS: PTS: 1 DIF: 2 REF: 236
NAT: AACSB Analytic | Strategy TYP: A

30. Which of these assumptions are included in the classical model of decision making?
a. Problems are unstructured and ill defined.
b. The decision-maker strives for conditions of certainty.
c. Criteria for evaluating alternatives are unknown.
d. The decision-maker selects the alternatives that will minimize the economic return to the organization.
e. The situation is always uncertain.

ANS: PTS: 1 DIF: 3 REF: 236
NAT: AACSB Analytic | Strategy TYP: F

31. Which approach defines how a decision-maker should make decisions?
a. normative
b. scientific
c. descriptive
d. reflective
e. humanistic

ANS: PTS: 1 DIF: 2 REF: 236
NAT: AACSB Analytic | Strategy TYP: F

32. ____ is the approach that defines how a decision maker should make decisions and provides guidelines for reaching an ideal outcome for the organization.
a. Administrative
b. Descriptive
c. Normative
d. Bounded rationality
e. None of these

ANS: PTS: 1 DIF: 2 REF: 236
NAT: AACSB Analytic | Strategy TYP: F

33. The ____ model of decision making is most valuable when applied to ____.
a. administrative, programmed decisions
b. classical, nonprogrammed decisions
c. classical, programmed decisions
d. classical, ambiguous decisions
e. administrative, structured decisions

ANS: PTS: 1 DIF: 3 REF: 237
NAT: AACSB Analytic | Strategy TYP: F

34. ____ approach describes how managers actually make decisions, where as ____ approach defines how a decision-maker should make decisions.
a. Normative, descriptive
b. Normative, classical
c. Descriptive, normative
d. Descriptive, administrative
e. Normative, administrative

ANS: PTS: 1 DIF: 2 REF: 236-237
NAT: AACSB Analytic | Strategy TYP: F

35. Which model of decision making is associated with satisficing, bounded rationality, and uncertainty?
a. classical
b. administrative
c. quantitative
d. rational
e. political

ANS: PTS: 1 DIF: 2 REF: 237
NAT: AACSB Analytic | Strategy TYP: F

36. The ____ model of decision making describes how managers actually makes decisions in situations characterized by nonprogrammed decisions, uncertainty, and ambiguity.
a. normative
b. classical
c. administrative
d. scientific management
e. objective

ANS: PTS: 1 DIF: 1 REF: 237
NAT: AACSB Analytic | Strategy TYP: F

37. The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions is known as
a. satisficing.
b. bounded rationality.
c. classical model of decision making.
d. normative approach.
e. scientific approach.

ANS: PTS: 1 DIF: 1 REF: 237
NAT: AACSB Analytic | Strategy TYP: F

38. The essence of ____ is to choose the first solution available.
a. bounded rationality
b. creativity
c. decision maximization
d. satisficing
e. the classical model of decision making

ANS: PTS: 1 DIF: 2 REF: 237
NAT: AACSB Analytic | Strategy TYP: F

39. Melissa is a manager at InStylez Clothing. Her job is very complex and she feels that she does not have enough time to identify and/or process all the information she needs to make decisions. Melissa’s situation is most consistent with which of the following concepts?
a. Bounded rationality
b. The classical model of decision making
c. Satisficing
d. Brainstorming
e. Scientific management

ANS: PTS: 1 DIF: 3 REF: 237
NAT: AACSB Analytic | Strategy TYP: A

40. Intuition is based on ____, but lacking in ____.
a. conscious thought, practicality
b. experience, applicability
c. a solid analysis, applicability
d. experience, conscious thought
e. thought-process, guts

ANS: PTS: 1 DIF: 2 REF: 238
NAT: AACSB Analytic | Strategy TYP: F

41. Most managers settle for a ____ rather than a(n) ____ solution.
a. minimizing; maximizing
b. satisficing; maximizing
c. top-level; bottomline
d. maximizing; satisficing
e. challenging; simple

ANS: PTS: 1 DIF: 2 REF: 238
NAT: AACSB Analytic | Individual Dynamics TYP: F

42. Which of the following is the process of forming alliances among managers during the decision making process?
a. Networking
b. Socializing
c. Coalition building
d. Satisficing
e. Passing the buck

ANS: PTS: 1 DIF: 2 REF: 240
NAT: AACSB Analytic | Strategy TYP: F

43. The ____ model closely resembles the real environment in which most managers and decision-makers operate.
a. normative
b. administrative
c. descriptive
d. classical
e. political

ANS: PTS: 1 DIF: 2 REF: 240
NAT: AACSB Analytic | Strategy TYP: F

44. All of these are basic assumptions of the political model EXCEPT
a. organizations are made up of groups with diverse interests, goals, and values.
b. information is clear and complete.
c. managers do not have the time, resources, or mental capacity to identify all dimensions of the problem.
d. managers engage in the push and pull of debate to decide goals and discuss alternatives.
e. all of these are basic assumptions of the political model.

ANS: PTS: 1 DIF: 2 REF: 240
NAT: AACSB Analytic | Strategy TYP: F

45. All of the following are characteristics of the classical decision making model EXCEPT
a. clear-cut problems and goals.
b. conditions of certainty.
c. rational choice by individual for maximizing outcomes.
d. limited information about alternatives and their outcomes.
e. all of these are characteristics of classical decision making model.

ANS: PTS: 1 DIF: 3 REF: 236
NAT: AACSB Analytic | Strategy TYP: F

46. All of the following are characteristics of the administrative decision making model EXCEPT
a. vague problem and goals.
b. conditions of certainty.
c. limited information about alternatives and their outcomes.
d. satisfying choice.
e. all of these are characteristics of administrative decision making model.

ANS: PTS: 1 DIF: 3 REF: 238
NAT: AACSB Analytic | Strategy TYP: F

47. Shirley works in the human resource department at Turtle Shells, Inc. She believes she is seeing an increase in drinking problems among the workforce. She thinks she needs to investigate further. She is at what stage of the managerial decision making process?
a. Diagnosis and analysis of causes
b. Development of alternatives
c. Recognition of decision requirement
d. Evaluation and feedback
e. Selection of desired alternatives

ANS: PTS: 1 DIF: 1 REF: 241
NAT: AACSB Analytic | Strategy TYP: A

48. A(n) ____ occurs when the organizational accomplishment is less than established goals.
a. strength
b. threat
c. diagnosis
d. opportunity
e. problem

ANS: PTS: 1 DIF: 2 REF: 241
NAT: AACSB Analytic | Strategy TYP: F

49. ____ is the step in the decision-making process in which managers analyze underlying causal factors associated with the decision situation.
a. Analysis
b. Diagnosis
c. Recognition
d. Judgment
e. Identification

ANS: PTS: 1 DIF: 2 REF: 242
NAT: AACSB Analytic | Strategy TYP: F

50. Which of the following is the first step in the managerial decision making process?
a. Evaluation and feedback
b. Development of alternatives
c. Recognition of decision requirement
d. Diagnosis and analysis of causes
e. Selection of desired alternatives

ANS: PTS: 1 DIF: 1 REF: 242
NAT: AACSB Analytic | Strategy TYP: F

51. ____ is the last step in the decision making process.
a. Evaluation and feedback
b. Development of alternatives
c. Implementation of chosen alternative
d. Selection of desired requirement
e. Recognition of decision requirement

ANS: PTS: 1 DIF: 1 REF: 242
NAT: AACSB Analytic | Strategy TYP: F

52. “When did it occur” and “how did it occur” are questions associated with which step of the decision making process?
a. Diagnosis and analysis of causes
b. Recognition of decision requirement
c. Development of alternatives
d. Selection of desired alternative
e. None of these

ANS: PTS: 1 DIF: 2 REF: 242
NAT: AACSB Analytic | Strategy TYP: F

53. The recognition of the decision requirement step in the managerial decision making process requires managers to
a. develop alternative solutions.
b. integrate information in novel ways.
c. use the classical model of decision making.
d. focus on generating ideas.
e. select undesirable alternatives.

ANS: PTS: 1 DIF: 2 REF: 242
NAT: AACSB Analytic | Strategy TYP: F

54. The decision-maker must ____ once the problem has been recognized and analyzed.
a. evaluate and provide feedback
b. choose among alternatives
c. generate alternatives
d. prioritize the alternatives
e. reanalyze the problem

ANS: PTS: 1 DIF: 2 REF: 243
NAT: AACSB Analytic | Strategy TYP: F

55. For a programmed decision,
a. alternatives are usually difficult to identify.
b. alternatives are usually easy to identify.
c. there are usually few alternatives.
d. there are usually few alternatives and they are difficult to identify.
e. there are no alternatives.

ANS: PTS: 1 DIF: 2 REF: 243
NAT: AACSB Analytic | Strategy TYP: F

56. Ryan is a manager at Dream Catchers. Dream Catchers is currently operating in an environment of high uncertainty. As a result, Ryan will
a. likely be making programmed decisions.
b. probably have an easy time generating alternatives.
c. probably have a difficult time generating alternatives.
d. likely rely on the classical model of decision making.
e. wait until environment becomes certain.

ANS: PTS: 1 DIF: 2 REF: 243
NAT: AACSB Analytic | Strategy TYP: A

57. Once the desired alternative is developed, it should be
a. analyzed.
b. evaluated.
c. selected.
d. recognized.
e. identified.

ANS: PTS: 1 DIF: 2 REF: 243
NAT: AACSB Analytic | Strategy TYP: F

58. Which of the following refers to the willingness to undertake risk with the opportunity to increase one’s return?
a. Tunnel vision
b. Risk propensity
c. Risk averse
d. Thrill seeking
e. Ineffective investment philosophy

ANS: PTS: 1 DIF: 1 REF: 243
NAT: AACSB Analytic | Strategy TYP: F

59. The ____ step in the decision making process involves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action.
a. recognition
b. analysis
c. evaluation
d. implementation
e. feedback

ANS: PTS: 1 DIF: 1 REF: 244
NAT: AACSB Analytic | Strategy TYP: F

60. Feedback is important because
a. decision making is a continuous process.
b. it provides decision-makers with new information.
c. it helps determine if a new decision needs to be made.
d. it provides decision-makers with new information and it helps determine if a new decision needs to be made.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 244
NAT: AACSB Analytic | Strategy TYP: F

61. Genna is collecting data on how well the organization has done since their new strategy was implemented. She is in what stage of the managerial decision making process?
a. The generation of alternatives
b. Implementation of the chosen alternative
c. Evaluation and feedback
d. Recognition of the decision requirement
e. Selection of desired alternative

ANS: PTS: 1 DIF: 2 REF: 244
NAT: AACSB Analytic | Strategy TYP: A

62. Which style is used by people who prefer simple, clear-cut solutions to problems?
a. Behavioral
b. Conceptual
c. Directive
d. Analytical
e. Classical

ANS: PTS: 1 DIF: 1 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F

63. Personal ____ style refers to differences among people with respect to how they perceives problems and make decisions.
a. risk taking
b. behavior
c. decision
d. strategic
e. analysis

ANS: PTS: 1 DIF: 2 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F

64. Managers are considered as having ____ style, when they like to consider complex solutions based on as much data as they can gather.
a. behavioral
b. conceptual
c. directive
d. analytical
e. classical

ANS: PTS: 1 DIF: 1 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F

65. Which of these styles is adopted by managers having a deep concern for others as individuals?
a. Behavioral
b. Classical
c. Analytic
d. Logical
e. Conceptual

ANS: PTS: 1 DIF: 1 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F

66. People with a(n) ____ style usually are concerned with the personal development of others and may make decisions that help others achieve their goals.
a. classical
b. analytic
c. logical
d. behavioral
e. conceptual

ANS: PTS: 1 DIF: 1 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F

67. All of the following are cognitive biases that can affect manager’s judgment EXCEPT
a. being influenced by initial impressions.
b. justifying past decisions.
c. seeing what you don’t want to see.
d. perpetuating the status quo.
e. overconfidence.

ANS: PTS: 1 DIF: 2 REF: 247-248
NAT: AACSB Analytic | Strategy TYP: F

68. The ability to make ____ decisions is a critical skill in today’s fast-moving organizations.
a. fast
b. widely supported
c. high-quality
d. frequent
e. all of these

ANS: PTS: 1 DIF: 2 REF: 250
NAT: AACSB Analytic | Individual Dynamics TYP: F

69. According to MANAGER’S SHOPTALK in chapter 9, which of the following is not an idea for applying evidence-based decision making?
a. Demand evidence
b. Perform secondary research.
c. Do a post-mortem.
d. Balance decisiveness and humility
e. Practice the five whys.

ANS: PTS: 1 DIF: 2 REF: 249
NAT: AACSB Analytic | Strategy TYP: F

70. Which of the following defines a technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for decision making?
a. Brainstorming
b. Groupthink
c. Point-counterpoint
d. Brainwriting
e. Devil’s advocate

ANS: PTS: 1 DIF: 2 REF: 250
NAT: AACSB Analytic | Group Dynamics TYP: F

71. The ____ is the individual who is assigned the role of challenging assumptions made by the group.
a. group gadfly
b. multiple advocate
c. devil’s advocate
d. brainstormer
e. inferior member

ANS: PTS: 1 DIF: 1 REF: 250
NAT: AACSB Analytic | Group Dynamics TYP: F

72. Which of the following is a decision-making technique in which people are assigned to express competing points of view?
a. Point-counterpoint
b. Devil’s advocate
c. Debate
d. Groupthink
e. Brainwriting

ANS: PTS: 1 DIF: 2 REF: 251
NAT: AACSB Analytic | Group Dynamics TYP: F

73. The tendency of organizations to invest time and money in a solution despite strong evidence that is not appropriate is referred to as
a. technological decisions.
b. collective intuition.
c. decision learning.
d. team delay.
e. escalating commitment.

ANS: PTS: 1 DIF: 2 REF: 251
NAT: AACSB Analytic | Strategy TYP: F

74. At the start of every shift, Carl, a delivery truck driver, plans out his route based on the addresses that he will be visiting to drop off packages. This can best be described as what kind of decision?
a. Programmed
b. Nonprogrammed
c. Wicked
d. Administrative
e. Intuitive

ANS: PTS: 1 DIF: 3 REF: 233
NAT: AACSB Analytic | Strategy TYP: A

75. The four positions on the possibility of failure scale include certainty, risk, ambiguity, and:
a. Uncertainty
b. Conflict
c. Necessity
d. Indecision
e. Possibility

ANS: PTS: 1 DIF: 2 REF: 234
NAT: AACSB Analytic | Strategy TYP: F

76. ________ decisions are associated with conflicts over goals and decision alternatives, rapidly changing circumstances, fuzzy information, and unclear links among decision elements.
a. Nonprogrammed
b. Programmed
c. Wicked
d. Conventional
e. Irrational

ANS: PTS: 1 DIF: 2 REF: 235
NAT: AACSB Analytic | Strategy TYP: F

77. During the fallout of the global financial crisis of the late 2000s, finance companies had to make important decisions in a highly ambiguous environment. The decision to buyout failed banks could best be described as what type of decision?
a. Bounded
b. Programmed
c. Conventional
d. Wicked decision problem
e. Irrational decision

ANS: PTS: 1 DIF: 3 REF: 235
NAT: AACSB Analytic | Strategy TYP: A

78. The growth of quantitative decision techniques that use computers has expanded the use of which decision-making approach?
a. Administrative
b. Classical
c. Intuitive
d. Political
e. Bureaucratic

ANS: PTS: 1 DIF: 2 REF: 237
NAT: AACSB Analytic | Information Technologies TYP: F

79. Rodney doesn’t always realize that within his role as an air traffic controller, he must continuously perceive and process information based on knowledge and experience that he is not consciously aware of. This describes what type of decision-making?
a. Administrative
b. Right-brained
c. Satisficing
d. Rational
e. Intuitive

ANS: PTS: 1 DIF: 3 REF: 238
NAT: AACSB Analytic | Strategy TYP: A

80. The __________ model of decision-making is useful for making programmed decisions when conditions are uncertain, information is limited, and there are managerial conflicts about what goals to pursue or what course of action to take.
a. Classical
b. Functional
c. Bureaucratic
d. Political
e. Administrative

ANS: PTS: 1 DIF: 2 REF: 240
NAT: AACSB Analytic | Strategy TYP: F

81. Jefferson Inc. is an information technology consulting firm located in Washington D.C. Decisions at Jefferson are complex and involve many people, with a significant amount of disagreement and conflict. Which decision-making model fits best for this organization?
a. Political
b. Functional
c. Classical
d. Administrative
e. Bureaucratic

ANS: PTS: 1 DIF: 3 REF: 241
NAT: AACSB Analytic | Strategy TYP: A

82. When managers ask questions such as “What is the state of disequilibrium affecting us?”, they are in which stage of the managerial decision-making process?
a. Selection of a desired alternative
b. Development of alternatives
c. Diagnosis and analysis of causes
d. Recognition of decision requirement
e. Evaluation and feedback

ANS: PTS: 1 DIF: 2 REF: 242
NAT: AACSB Analytic | Strategy TYP: F

83. When quality control measures at the local tire plant were found to be inadequate, managers were asking themselves, “How did this occur?” and “What is the result?” The company is in which stage of the managerial decision-making process?
a. Selection of a desired alternative
b. Development of alternatives
c. Diagnosis and analysis of causes
d. Recognition of decision requirement
e. Evaluation and feedback

ANS: PTS: 1 DIF: 3 REF: 242
NAT: AACSB Analytic | Strategy TYP: A

84. Research has identified four major decision styles. These include all of the following EXCEPT:
a. Behavioral
b. Conceptual
c. Analytical
d. Authoritative
e. Directive

ANS: PTS: 1 DIF: 2 REF: 246
NAT: AACSB Analytic | Strategy TYP: F

85. Finance managers at Big Bend Inc. made a financial blunder when they solely looked at the previous year’s sales to estimate sales for the coming year. This is an example of which management bias?
a. Being influenced by emotions
b. Perpetuating the status quo
c. Seeing what you want to see
d. Justifying past actions
e. Being influenced by initial impressions

ANS: PTS: 1 DIF: 3 REF: 247
NAT: AACSB Analytic | Strategy TYP: A

86. When managers base decisions on what has worked in the past and fail to explore new options, they are:
a. Perpetuating the status quo
b. Being influenced by emotions
c. Being overconfident
d. Justifying past actions
e. Seeing what they want to see

ANS: PTS: 1 DIF: 2 REF: 248
NAT: AACSB Analytic | Strategy TYP: F

87. As a top manager, Joanna works with others within her team every day in making important corporate decisions. Her preferred decision-making approach is to generate as many alternatives to problems as possible in a short amount of time. This approach is referred to as:
a. Groupthink
b. Devil’s advocacy
c. Point-counterpoint
d. Escalating commitment
e. Brainstorming

ANS: PTS: 1 DIF: 3 REF: 250
NAT: AACSB Analytic | Group Dynamics TYP: A

88. __________refers to the tendency of people in groups to suppress contrary opinions.
a. Point-counterpoint
b. Groupthink
c. Devil’s advocacy
d. Escalating commitment
e. Brainstorming

ANS: PTS: 1 DIF: 2 REF: 251
NAT: AACSB Analytic | Group Dynamics TYP: F

CASE

Scenario – Vaughn Bately

Vaughn Bately manages a group of eight electrical engineers at Defiance Designs. His team is highly trained and well respected by experts both inside and outside the company. Recently one of Vaughn’s engineers suggested a new technique for the development and use of an argon laser. There appeared to be rich potential for this technology, but Vaughn wasn’t certain that developing this technology was the best use of his limited resources. Vaughn was facing a significant decision.

1. If Vaughn uses the classical model of decision making, which of these assumptions would he reject?
a. The decision maker is rational and uses logic in assigning values and evaluating alternatives.
b. The desired decision will maximize attainment of organizational objectives.
c. The decision-maker strives for complete certainty, gathering complete information.
d. Problems are precisely formulated and defined.
e. All of these are accepted.

ANS:

PTS: 1 DIF: 2 REF: 236 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A

2. If Vaughn uses the administrative model of decision making, which of these assumptions would he reject?
a. Decision-makers settle for a satisficing rather than maximizing solution
b. The search for alternatives is limited because of information, human and resource constraints
c. Rational procedures will normally lead to the best solution in a complex organization
d. Decision objectives are often vague, conflicting, and lack consensus among managers
e. All of these are accepted

ANS:

PTS: 1 DIF: 2 REF: 238 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A

3. Which of the following steps would Vaughn not take in making his decision?
a. Sense and recognize the decision requirement
b. Implement the chosen alternative
c. Create a set of alternatives
d. Diagnose and analyze problem causes
e. All of these would be included

ANS:

PTS: 1 DIF: 2 REF: 242 NAT: AACSB Analytic | Strategy
KEY: Scenario Questions TYP: A

COMPLETION

1. A(n) ____________________ is a choice made from available alternatives.

ANS:

PTS: 1 DIF: 2 REF: 232 NAT: AACSB Analytic | Strategy
TYP: F

2. ____________________ is the process of identifying problems and opportunities and then resolving them.

ANS:

PTS: 1 DIF: 2 REF: 232 NAT: AACSB Analytic | Strategy
TYP: F

3. ____________________ decisions involve situations that have occurred often enough to enable decision rules to be developed and applied in the future.

ANS:

PTS: 1 DIF: 2 REF: 232 NAT: AACSB Analytic | Strategy
TYP: F

4. ____________________ decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

ANS:

PTS: 1 DIF: 2 REF: 233 NAT: AACSB Analytic | Strategy
TYP: F

5. ____________________ means that all the information the decision-maker needs is fully available.

ANS:

PTS: 1 DIF: 2 REF: 234 NAT: AACSB Analytic | Strategy
TYP: F

6. ____________________ means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance.

ANS:

PTS: 1 DIF: 2 REF: 234 NAT: AACSB Analytic | Strategy
TYP: F

7. Under conditions of ____________________, managers know what goal they wish to achieve, but information about alternatives and future events is incomplete.

ANS:

PTS: 1 DIF: 2 REF: 234 NAT: AACSB Analytic | Strategy
TYP: F

8. ____________________ means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable.

ANS:

PTS: 1 DIF: 2 REF: 235 NAT: AACSB Analytic | Strategy
TYP: F

9. The ____________________ model of decision making is based on economic assumptions.

ANS:lassical

PTS: 1 DIF: 2 REF: 236 NAT: AACSB Analytic | Strategy
TYP: F

10. A normative decision making model defines how a manager ____________________ make decisions.

ANS:

PTS: 1 DIF: 2 REF: 236 NAT: AACSB Analytic | Strategy
TYP: F

11. In many respects, the ____________________ model represents an “ideal” model decision-making and can’t usually be attained by real people in real organizations.

ANS:

PTS: 1 DIF: 2 REF: 236 NAT: AACSB Analytic | Strategy
TYP: F

12. The ____________________ model of decision making describes how managers actually make decisions in difficult situations, such as those characterized by nonprogrammed decision, uncertainty, and ambiguity.

ANS:

PTS: 1 DIF: 2 REF: 237 NAT: AACSB Analytic | Strategy
TYP: F

13. The recognition that people have limits on how rational they can be is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 237 NAT: AACSB Analytic | Strategy
TYP: F

14. ____________________ means that decision-makers choose the first solution alternative that satisfies minimal decision criteria.

ANS:

PTS: 1 DIF: 2 REF: 237 NAT: AACSB Analytic | Strategy
TYP: F

15. A(n) ____________________ approach describes how managers actually make decisions, not how they should.

ANS:

PTS: 1 DIF: 2 REF: 237 NAT: AACSB Analytic | Strategy
TYP: F

16. ____________________ represents a quick apprehension of a decision situation based on past experience but without conscious thought.

ANS: Intuition

PTS: 1 DIF: 2 REF: 238 NAT: AACSB Analytic | Strategy
TYP: F

17. ____________________ is the process of forming alliances among managers.

ANS:

PTS: 1 DIF: 2 REF: 240 NAT: AACSB Analytic | Strategy
TYP: F

18. A(n) ____________________ occurs when organizational accomplishment is less than established goals.

ANS:

PTS: 1 DIF: 2 REF: 241 NAT: AACSB Analytic | Strategy
TYP: F

19. ____________________ exists when managers see potential of enhancing performance beyond current levels.

ANS:

PTS: 1 DIF: 2 REF: 241 NAT: AACSB Analytic | Strategy
TYP: F

20. The step in the decision making process in which managers analyze the underlying causal factors associated with the situation is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 242 NAT: AACSB Analytic | Strategy
TYP: F

21. ____________________ is the willingness to undertake risk with the opportunity of gaining an increased payoff.

ANS:

PTS: 1 DIF: 2 REF: 243 NAT: AACSB Analytic | Strategy
TYP: F

22. The ____________________ stage involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out.

ANS:

PTS: 1 DIF: 2 REF: 244 NAT: AACSB Analytic | Strategy
TYP: F

23. ____________________ is important because decision making is a continuous, never ending process.

ANS:

PTS: 1 DIF: 2 REF: 244 NAT: AACSB Analytic | Strategy
TYP: F

24. Differences among people with respect to how they perceive problems and make decisions is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F

25. The ____________________ style is often the style adopted by managers having a deep concern for others as individuals.

ANS

PTS: 1 DIF: 2 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F

26. People with a(n) ____________________ style usually are concerned with the personal development of others and may make decisions that help others achieve their goals.

ANS:

PTS: 1 DIF: 1 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F

27. A(n) ____________________ is assigned the role of challenging the assumptions and assertions made by the group.

ANS:

PTS: 1 DIF: 2 REF: 250
NAT: AACSB Analytic | Group Dynamics TYP: F

SHORT ANSWER

1. List four of the eight questions Kepner and Tregoe recommend that managers ask when diagnosing and analyzing causes.

ANS

PTS: 1 DIF: 2 REF: 242-243 NAT: AACSB Analytic | Strategy
TYP: F

2. List the three guidelines of innovative group decision-making in today’s businesses.

ANS:

PTS: 1 DIF: 2 REF: 250-251 NAT: AACSB Analytic | Strategy
TYP: F

ESSAY

1. Explain the difference between programmed and nonprogrammed decisions and give an example of each.

ANS:

PTS: 1 DIF: 2 REF: 232-233 NAT: AACSB Analytic | Strategy
TYP: F

2. Compare decision conditions of certainty, risk, uncertainty, and ambiguity.

ANS:

PTS: 1 DIF: 3 REF: 234 NAT: AACSB Analytic | Strategy
TYP: F

3. Briefly describe the assumptions underlying the classical model of decision making.

ANS:

PTS: 1 DIF: 3 REF: 236 NAT: AACSB Analytic | Strategy
TYP: F

4. Explain the four underlying assumptions of the administrative model.

ANS:

PTS: 1 DIF: 2 REF: 238 NAT: AACSB Analytic | Strategy
TYP: F

5. List and describe the four basic assumptions of the political model.

ANS:

PTS: 1 DIF: 2 REF: 240 NAT: AACSB Analytic | Strategy
TYP: F

6. What are the six steps in the managerial decision making process?

ANS:

PTS: 1 DIF: 1 REF: 242 NAT: AACSB Analytic | Strategy
TYP: F

7. Explain how a manager selects the desired decision in the managerial decision making process.

ANS:

PTS: 1 DIF: 2 REF: 243-244 NAT: AACSB Analytic | Strategy
TYP: F

8. Briefly describe the four major personal decision styles.

ANS:

PTS: 1 DIF: 2 REF: 246
NAT: AACSB Analytic | Individual Dynamics TYP: F
Chapter 10—Designing Adaptive Organizations

TRUE/FALSE

1. The deployment of organizational resources to achieve strategic goals refers to organizing.

ANS: PTS: 1 DIF: 1 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

2. Organizing defines what to do while strategy defines how to do it.

ANS: PTS: 1 DIF: 2 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

3. Strategy defines what to do; organizing defines how to do it.

ANS: PTS: 1 DIF: 2 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

4. The framework in which the organization defines how tasks are divided, resources are deployed and departments are coordinated is called organizational structure.

ANS: PTS: 1 DIF: 1 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

5. A structure graph is a visual representation of an organization’s structure, showing communication and lines of power.

ANS: PTS: 1 DIF: 1 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

6. Despite the apparent advantages of specialization, many organizations are moving away from this principle.

ANS: PTS: 1 DIF: 2 REF: 263
NAT: AACSB Analytic | Creation of Value TYP: F

7. The idea that organizations develop a well-defined line of authority that includes all employees is suggested by the virtual network approach.

ANS: PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

8. The principle of unity of command suggests that managers within an organization should reach agreement on the goals and objectives of the organization.

ANS: PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

9. Authority is the right to use resources, make decisions and issue orders in an organization.

ANS: PTS: 1 DIF: 1 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

10. The duty to perform the task or activity an employee has been assigned is called accountability.

ANS: PTS: 1 DIF: 1 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

11. The flip side of the authority coin is responsibility.

ANS: PTS: 1 DIF: 1 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

12. Most organizations today discourage managers to delegate authority to the lower levels given the challenges to meet customer needs and adapt to the environment.

ANS: PTS: 1 DIF: 2 REF: 265
NAT: AACSB Analytic | Creation of Value TYP: F

13. Staff departments perform tasks that reflect the organization’s primary goal and mission.

ANS: PTS: 1 DIF: 2 REF: 265
NAT: AACSB Analytic | Creation of Value TYP: F

14. The right to advise, recommend, and counsel in the staff specialists’ area of expertise is included in staff authority.

ANS: PTS: 1 DIF: 2 REF: 265
NAT: AACSB Analytic | Creation of Value TYP: F

15. The number of employees reporting to a supervisor is his or her span of management.

ANS: PTS: 1 DIF: 1 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

16. People in management positions have formal authority to direct and control immediate subordinates.

ANS: PTS: 1 DIF: 1 REF: 265
NAT: AACSB Analytic | Creation of Value TYP: F

17. According to MANAGER’S SHOPTALK in Chapter 10, the attempt by top management to decentralize decision making often gets bogged down because middle managers are unable to delegate.

ANS: PTS: 1 DIF: 1 REF: 266
NAT: AACSB Analytic | Creation of Value TYP: F

18. According to MANAGER’S SHOPTALK in Chapter 10, managers are most comfortable making familiar decisions.

ANS: PTS: 1 DIF: 1 REF: 266
NAT: AACSB Analytic | Strategy TYP: F

19. A relatively few hierarchical levels and a correspondingly narrow span of management refers to a flat structure.

ANS: PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

20. The trend in recent years has been toward narrower spans of control as a way to facilitate delegation.

ANS: PTS: 1 DIF: 2 REF: 268
NAT: AACSB Analytic | Creation of Value TYP: F

21. A tall structure is a management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels.

ANS: PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

22. Certainty in the environment is usually associated with decentralization.

ANS: PTS: 1 DIF: 2 REF: 268
NAT: AACSB Analytic | Creation of Value TYP: F

23. The basis for grouping positions into departments and departments into the total organization is referred to as departmentalization.

ANS: PTS: 1 DIF: 1 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

24. Two contemporary approaches to departmentalization are the use of teams and groups.

ANS: PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

25. At Fox End, people are grouped together in departments by common skills and work activities, including a sales department and a production department. This is an example of vertical functional approach.

ANS: PTS: 1 DIF: 3 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: A

26. At Creative Expressions, departments are grouped together into separate self-contained groups based on common products and product lines. This is an example of departmental approach.

ANS: PTS: 1 DIF: 2 REF: 272
NAT: AACSB Analytic | Creation of Value TYP: A

27. The functional structure offers a way to decentralize decision making and provide direction from the teams in the field.

ANS: PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

28. Because the chain of command converges at the top, the functional structure provides a way to decentralize decision making and provide unified direction from all managers.

ANS: PTS: 1 DIF: 3 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

29. Quick response to external changes is an advantage of vertical functional structure.

ANS: PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

30. The functional structure is sometimes called a product, a program, or self-contained unit structure.

ANS: PTS: 1 DIF: 1 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

31. Divisions are created, in functional structures, as self-contained units with separate functional departments for each division.

ANS: PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

32. The divisional structure encourages decentralization.

ANS: PTS: 1 DIF: 1 REF: 273
NAT: AACSB Analytic | Creation of Value TYP: F

33. In a geographic-based structure, all functions in a specific country or region report to the same division manager.

ANS: PTS: 1 DIF: 2 REF: 273
NAT: AACSB Analytic | Creation of Value TYP: F

34. Aspects of both functional and divisional structures simultaneously in the same part of the organization are combined in the virtual network approach.

ANS: PTS: 1 DIF: 1 REF: 273
NAT: AACSB Analytic | Information Technologies TYP: F

35. The horizontal structure provides traditional control within functional departments, and the vertical structure provides coordination across departments.

ANS: PTS: 1 DIF: 2 REF: 273
NAT: AACSB Analytic | Creation of Value TYP: F

36. In a matrix approach to departmentalization, two chains of command exist, with top priority given to the team managers.

ANS: PTS: 1 DIF: 3 REF: 273-275
NAT: AACSB Analytic | Creation of Value TYP: F

37. The confusion and frustration caused by the dual chain of command is the major problem of the matrix structure.

ANS: PTS: 1 DIF: 1 REF: 279
NAT: AACSB Analytic | Group Dynamics TYP: F

38. A cross-functional team normally has two or more groups of employees who are in continuing conflict because of a difference in goals and values.

ANS: PTS: 1 DIF: 2 REF: 275
NAT: AACSB Analytic | Group Dynamics TYP: F

39. The overseer of both the product and functional chains of command, responsible for the entire matrix is the matrix boss.

ANS: PTS: 1 DIF: 2 REF: 275
NAT: AACSB Analytic | Creation of Value TYP: F

40. The nature of the virtual network structure means that the subcontractor becomes a permanent part of and an internal division of the organization.

ANS: PTS: 1 DIF: 2 REF: 276
NAT: AACSB Analytic | Creation of Value TYP: F

41. Permanent teams are groups of employees that are organized in a way similar to a formal department.

ANS: PTS: 1 DIF: 2 REF: 276
NAT: AACSB Analytic | Creation of Value TYP: F

42. The modular approach is similar to virtual networking.

ANS: PTS: 1 DIF: 1 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

43. The divisional structure fosters excellent coordination within divisions, but coordination across divisions is often poor.

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

44. One of the disadvantages of team approach is that employees often experience conflicts and dual loyalties.

ANS: PTS: 1 DIF: 1 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

45. Flexibility and competitiveness on a global scale are the biggest advantage of the virtual network approach to structure.

ANS: PTS: 1 DIF: 1 REF: 278
NAT: AACSB Analytic | Information Technologies TYP: F

46. In the divisional approach, coordination across divisions is great whereas coordination within divisions is often poor.

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

47. The matrix approach can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible and adaptable.

ANS: PTS: 1 DIF: 3 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

48. One major disadvantage of the virtual network approach is the lack of hands-on control.

ANS: PTS: 1 DIF: 2 REF: 280
NAT: AACSB Analytic | Creation of Value TYP: F

49. The structure of an organization is not complete without designing the horizontal as well as the vertical dimensions of structure.

ANS: PTS: 1 DIF: 1 REF: 281
NAT: AACSB Analytic | Creation of Value TYP: F

50. Coordination is the quality of collaboration across departments.

ANS: PTS: 1 DIF: 1 REF: 281
NAT: AACSB Analytic | Creation of Value TYP: F

51. Coordination is especially important in the international arena.

ANS: PTS: 1 DIF: 1 REF: 281
NAT: AACSB Analytic | Creation of Value TYP: F

52. Reengineering is the outcome of information and cooperation.

ANS: PTS: 1 DIF: 2 REF: 282
NAT: AACSB Analytic | Creation of Value TYP: F

53. A permanent team designed to solve short-term problems refers to a task force.

ANS: PTS: 1 DIF: 1 REF: 283
NAT: AACSB Analytic | Creation of Value TYP: F

54. A project manager is a person responsible for coordinating the activities of several departments for the completion of a specific project.

ANS: PTS: 1 DIF: 1 REF: 283
NAT: AACSB Analytic | Creation of Value TYP: F

55. Reengineering basically means preserving the past by establishing the sequence of activities by how work was done.

ANS: PTS: 1 DIF: 1 REF: 282
NAT: AACSB Analytic | Creation of Value TYP: F

56. The radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed is called reengineering.

ANS: PTS: 1 DIF: 2 REF: 282
NAT: AACSB Analytic | Creation of Value TYP: F

57. Because the focus of reengineering is on function rather than process, reengineering generally leads to a shift away from a strong horizontal structure to one emphasizing stronger vertical coordination.

ANS: PTS: 1 DIF: 3 REF: 282
NAT: AACSB Analytic | Creation of Value TYP: F

58. In today’s environment, organizations with stronger horizontal designs typically perform better.

ANS: PTS: 1 DIF: 2 REF: 284
NAT: AACSB Analytic | Creation of Value TYP: F

59. When an organization uses a differentiation strategy, it strives for internal efficiency.

ANS: PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

60. With a cost leadership strategy, the organization attempts to develop innovative products unique to the market.

ANS: PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

61. Permissive expectations typically would fit in a traditional vertical structure with fixed rules and a clear hierarchy of authority.

ANS: PTS: 1 DIF: 3 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

62. Flexible authority expectations typically would fit with horizontal organizing, such as managing teams, projects, and reengineering.

ANS: PTS: 1 DIF: 3 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

63. Two contingency factors affecting structure are strategic goals and the environment.

ANS: PTS: 1 DIF: 1 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

64. The pure functional structure is appropriate for achieving internal efficiency goals.

ANS: PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

65. The functional structure is appropriate when the primary goal is innovation and flexibility.

ANS: PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

66. A vertical structure that emphasizes specialization and centralization is appropriate when environmental uncertainty is high.

ANS: PTS: 1 DIF: 3 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

67. A rigid, vertical structure in an uncertain environment prevents the organization form adapting to change.

ANS: PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

68. A loose, horizontal structure in a stable environment is inefficient.

ANS: PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

69. According to research, a fundamental principle is that work can be performed more efficiently if employees use no work specialization.

ANS: PTS: 1 DIF: 2 REF: 262
NAT: AACSB Analytic | Strategy TYP: F

70. When work specialization is extensive, employees specialize in a single task. Jobs tend to be small, but they can be performed efficiently.

ANS: PTS: 1 DIF: 2 REF: 263
NAT: AACSB Analytic | Strategy TYP: F

71. A payroll clerk reports to a chief accountant, who in turn reports to the vice president, who in turn reports to the company president. This is an example of chain of command.

ANS: PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Strategy TYP: A

72. The acceptance theory of authority argues that managers have authority because of the positions they hold, not the people in those positions.

ANS: PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Strategy TYP: F

73. Line departments perform tasks that reflect the organization’s primary goal and mission.

ANS: PTS: 1 DIF: 2 REF: 265
NAT: AACSB Analytic | Strategy TYP: F

74. Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager.

ANS: PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Strategy TYP: F

75. In the United States and Canada, the trend over the past 30 years has been toward greater centralization of organizations.

ANS: PTS: 1 DIF: 2 REF: 268
NAT: AACSB Analytic | Strategy TYP: F

76. For companies to operate effectively, the amount of centralization or decentralization should fit the firm’s strategy.

ANS: PTS: 1 DIF: 2 REF: 269
NAT: AACSB Analytic | Strategy TYP: F

77. Large non-profit organizations such as the United Way and Girl Scouts of the USA are known to operate using a matrix structure.

ANS: PTS: 1 DIF: 2 REF: 273
NAT: AACSB Analytic | Strategy TYP: F

78. With a virtual structure, the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization’s goals.

ANS: PTS: 1 DIF: 2 REF: 276
NAT: AACSB Analytic | Group Dynamics TYP: F

79. The distinctive feature of the project manager position is that the person is not a member of one of the departments begin coordinated.

ANS: PTS: 1 DIF: 2 REF: 283
NAT: AACSB Analytic | Strategy TYP: F

80. Small-batch production is distinguished by standardized production runs.

ANS: PTS: 1 DIF: 2 REF: 286
NAT: AACSB Analytic | Operations Management TYP: F

81. Technical complexity is the difference between small-batch production, mass production, and continuous process production.

ANS: PTS: 1 DIF: 2 REF: 287
NAT: AACSB Analytic | Operations Management TYP: F

82. Intangible output refers to organizations where employees and customers interact directly in the production of products and services.

ANS: PTS: 1 DIF: 2 REF: 289
NAT: AACSB Analytic | Strategy TYP: F

83. Digital technology encourages boundarylessness, where information and work activities flow freely among various organizational participants.

ANS: PTS: 1 DIF: 2 REF: 289
NAT: AACSB Analytic | Information Technologies TYP: F

MULTIPLE CHOICE

1. Which of the following refers to the deployment of organizational resources to achieve strategic goals?
a. Planning
b. Controlling
c. Organizing
d. Leading
e. Strategic management

ANS: PTS: 1 DIF: 1 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

2. Strategy defines ____ to do (it) while organizing defines ____ to do (it).
a. how; what
b. how; why
c. what; how
d. what; why
e. when; what

ANS: PTS: 1 DIF: 2 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

3. Organizational structure includes which of these?
a. The set of formal tasks assigned to individuals
b. The set of formal tasks assigned to departments
c. The design of systems to ensure effective coordination of employees across departments
d. Formal reporting relationships
e. All of these are part of organizational structure.

ANS: PTS: 1 DIF: 1 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

4. Organization structure is defined as the
a. visual representation of the organization.
b. framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated.
c. division of labor.
d. unbroken line of authority that links all individuals in the organization.
e. none of these.

ANS: PTS: 1 DIF: 1 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

5. The organization chart
a. shows the characteristics of the organization’s vertical structure.
b. is a visual representation of the organization’s structure.
c. details the formal reporting relationships that exist within an organization.
d. all of these.
e. both shows the characteristics of the organization’s vertical structure and is a visual representation of the organization’s structure.

ANS: PTS: 1 DIF: 2 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

6. Which of the following refers to the degree to which organizational tasks are subdivided into individual jobs?
a. Multitasking
b. Lines of authority
c. Work specialization
d. Autonomy
e. Team structure

ANS: PTS: 1 DIF: 2 REF: 262-263
NAT: AACSB Analytic | Creation of Value TYP: F

7. When work specialization is extensive
a. employees perform a single task.
b. employees perform many tasks.
c. employees are often highly challenged.
d. employees are often inefficient.
e. jobs tend to be large.

ANS: PTS: 1 DIF: 2 REF: 263
NAT: AACSB Analytic | Creation of Value TYP: F

8. Louise works in the manufacturing department at Ice Sculptures. The work in Louise’s department is low in task specialization. As a result, Louise
a. usually performs a single task.
b. does a variety of tasks and activities.
c. is often bored.
d. is rarely challenged.
e. generally goofs-off.

ANS: PTS: 1 DIF: 2 REF: 263
NAT: AACSB Analytic | Creation of Value TYP: A

9. Jacob was recently looking at his company’s organization chart in an attempt to discover who reports to whom. Jacob is studying his organization’s
a. degree of formalization.
b. amount of differentiation.
c. degree of centralization.
d. chain of command.
e. division of labor.

ANS: PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: A

10. ____ is also referred to as work specialization.
a. Division of labor
b. Unity of command
c. Scalar chain
d. Esprit de corps
e. virtual network approach

ANS: PTS: 1 DIF: 1 REF: 262-263
NAT: AACSB Analytic | Creation of Value TYP: F

11. Unity of command and the scalar principle are both closely related to the
a. amount of work specialization in an organization.
b. degree of formalization.
c. chain of command.
d. amount of bureaucracy in the organization.
e. matrix structure.

ANS: PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

12. ____ means that each employee is held accountable to only one supervisor.
a. Scalar principle
b. Unity of command
c. Work specialization
d. Division of labor
e. Span of management

ANS: PTS: 1 DIF: 1 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

13. The formal and legitimate right of a manager to make decisions is
a. delegation.
b. responsibility.
c. authority.
d. span of management.
e. leadership.

ANS: PTS: 1 DIF: 1 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

14. ____ refers to a clearly defined line of authority in the organization that includes all employees.
a. Scalar principle
b. Unity of command
c. Work specialization
d. Division of labor
e. Span of management

ANS: PTS: 1 DIF: 1 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

15. The people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. This is called
a. delegation.
b. line authority.
c. staff authority.
d. accountability.
e. hierarchy.

ANS: PTS: 1 DIF: 1 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

16. Which of the following characteristics distinguishes authority?
a. It is vested in people, not positions.
b. Subordinates accept it.
c. It flows across the horizontal hierarchy.
d. It emerges from the organizational values.
e. Individuals are born with this power.

ANS: PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

17. Gina wishes to transfer authority and responsibility to her subordinates. This process is known as
a. accountability.
b. coordination.
c. delegation.
d. departmentalization.
e. passing the buck.

ANS: PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: A

18. Which department performs tasks that reflect the organization’s primary goals and mission?
a. Line
b. Staff
c. Primary
d. Functional
e. Strategic planning

ANS: PTS: 1 DIF: 1 REF: 265
NAT: AACSB Analytic | Creation of Value TYP: F

19. ____ departments include all of those that provide specialized skills in support of ____ departments.
a. Line; staff
b. Staff; line
c. Primary; functional
d. Functional; primary
e. Line; functional

ANS: PTS: 1 DIF: 2 REF: 265
NAT: AACSB Analytic | Creation of Value TYP: F

20. Which of the following typically is NOT considered a staff department?
a. Strategic planning
b. Accounting
c. Manufacturing
d. Human resources
e. Research and development

ANS: PTS: 1 DIF: 2 REF: 265
NAT: AACSB Analytic | Creation of Value TYP: F

21. Carly’s Clothes, Inc. manufactures children’s clothes. Which of the following departments for Carly’s Clothes can be considered a line department?
a. Finance department
b. Human Resources department
c. Research and development department
d. Manufacturing department
e. Marketing department

ANS: PTS: 1 DIF: 2 REF: 265
NAT: AACSB Analytic | Creation of Value TYP: A

22. Which of the following refers to the number of employees reporting to a supervisor?
a. The line of authority
b. The span of management
c. The chain of command
d. The management chain
e. Delegation

ANS: PTS: 1 DIF: 1 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

23. Traditionally, a span of management of about ____ has been recommended.
a. three
b. five
c. fifteen
d. seven
e. twenty

ANS: PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

24. Dustin’s subordinates are highly trained and all perform similar tasks. Brittany’s subordinates are spread over two locations and she has little available in the way of support systems. Which of the following statements is most correct?
a. Nichole’s span of management can be larger than Kevin’s.
b. Nichole will have problems with unity of command.
c. Kevin’s span of management can be larger than Nichole’s.
d. Kevin has more problems with work specialization.
e. None of these.

ANS: PTS: 1 DIF: 3 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: A

25. According to MANAGER’S SHOPTALK in Chapter 10, all of the following are effective ways for a manager to delegate EXCEPT:
a. delegate the whole task
b. select the right person
c. save feedback for completion of the project
d. evaluate and reward performance
e. give thorough instruction

ANS: PTS: 1 DIF: 1 REF: 266
NAT: AACSB Analytic | Creation of Value TYP: F

26. Which of the following organizations have a flat structure compared to others?
a. Organization A with eleven hierarchical levels
b. Organization B with three hierarchical levels
c. Organization C with eight hierarchical levels
d. Organization D with six hierarchical levels
e. Organization E with seven hierarchical levels

ANS: PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: A

27. Which of the following factors is NOT associated with larger span of control?
a. Work performed by subordinates in stable and routine.
b. Subordinates perform similar work tasks.
c. Subordinates are located at various different locations.
d. Subordinates are highly trained and need little direction.
e. Rules and procedures defining task activities are available.

ANS: PTS: 1 DIF: 3 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

28. Relative to a flat organizational structure, a tall structure has a ____ span of management and ____ hierarchical levels.
a. wide, fewer
b. narrow, fewer
c. narrow, wider
d. narrow, more
e. wide, more

ANS: PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

29. ____ is the trend in recent years.
a. Greater work specialization
b. Less delegation
c. Wider spans of management
d. Narrower spans of management
e. Tall structure

ANS: PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

30. Barney and Betty work at Mountain Peak, Inc. Although they both work on the assembly line, they have the authority to make many decisions about their job. Mountain Peak can be said to have
a. a high degree of decentralization.
b. a wide span of management.
c. a high degree of centralization.
d. a narrow span of management.
e. no management.

ANS: PTS: 1 DIF: 2 REF: 268
NAT: AACSB Analytic | Creation of Value TYP: A

31. ____ means that decision authority is located near the ____ of the organization.
a. Centralization, bottom
b. Decentralization, top
c. Centralization, top
d. Centralization, middle
e. None of these

ANS: PTS: 1 DIF: 2 REF: 268
NAT: AACSB Analytic | Creation of Value TYP: F

32. Change and uncertainty in the environment are usually associated with
a. work specialization.
b. decentralization.
c. centralization.
d. tight vertical control.
e. division of labor.

ANS: PTS: 1 DIF: 2 REF: 269
NAT: AACSB Analytic | Creation of Value TYP: F

33. Which of the following is the basis for grouping positions into departments and departments into the total organization?
a. Departmentalization
b. Centralization
c. Decentralization
d. Formalization
e. Specialization

ANS: PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

34. The functional, ____, and ____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy.
a. divisional, teams
b. divisional, matrix
c. matrix, teams
d. matrix, networks
e. teams, networks

ANS: PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

35. Which of the following is not an approach to structural design that reflects different uses of the chain of command?
a. Matrix approach
b. Team-based approach
c. Process approach
d. Divisional approach
e. Virtual network approach

ANS: PTS: 1 DIF: 2 REF: 271
NAT: AACSB Analytic | Creation of Value TYP: F

36. Kara’s department is made up of people with similar skills and work activities. Her organization uses the ____ approach to departmentalization.
a. team-based
b. horizontal matrix
c. divisional
d. vertical functional
e. process

ANS: PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: A

37. Mondavi Corporation has a finance department, a marketing department, and a production department. Mondavi
a. uses a functional structure.
b. has a geographic structure.
c. uses a divisional structure.
d. uses product-based structure.
e. uses a matrix structure.

ANS: PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: A

38. When departments are grouped together on the basis of organizational outputs, the organization is using a
a. functional structure.
b. matrix structure.
c. divisional structure.
d. virtual network structure.
e. team-based structure.

ANS: PTS: 1 DIF: 1 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

39. Stephanie works in one of seven research and development departments at Tara’s Terrace, Inc. This would suggest that Tara’s Terrace has a
a. functional structure.
b. divisional structure.
c. wide span of control.
d. high degree of centralization.
e. matrix structure.

ANS: PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: A

40. According to your text, in very large companies, a
a. functional structure is necessary.
b. matrix structure is a requirement.
c. divisional structure is essential.
d. team approach should be avoided.
e. divisional structure is inefficient.

ANS: PTS: 1 DIF: 2 REF: 272
NAT: AACSB Analytic | Creation of Value TYP: F

41. Self-contained unit structure is a term used for
a. divisional structure.
b. functional structure.
c. term structure.
d. matrix structure.
e. virtual network structure.

ANS: PTS: 1 DIF: 1 REF: 272
NAT: AACSB Analytic | Creation of Value TYP: F

42. Relative to the functional structure, the divisional structure
a. encourages decentralization.
b. has a higher degree of work specialization.
c. has a more pronounced division of labor.
d. has excellent coordination across departments.
e. results in an efficient use of resources.

ANS: PTS: 1 DIF: 2 REF: 273
NAT: AACSB Analytic | Creation of Value TYP: F

43. All functions in a specific country or region report to the same division manager in ____ divisions.
a. functional
b. matrix
c. geographic-based
d. teams
e. networks

ANS: PTS: 1 DIF: 1 REF: 273
NAT: AACSB Analytic | Creation of Value TYP: F

44. Global companies often use a ____ structure to achieve simultaneous coordination of products across countries.
a. functional
b. divisional
c. matrix
d. product-based
e. process-based

ANS: PTS: 1 DIF: 2 REF: 274
NAT: AACSB Analytic | Creation of Value TYP: F

45. A formal chain of command for both functional and divisional relationships is provided by the ____ approach to structure.
a. matrix
b. vertical functional
c. divisional
d. product
e. team-based

ANS: PTS: 1 DIF: 2 REF: 273
NAT: AACSB Analytic | Creation of Value TYP: F

46. Kent works at the Tick Tock, Inc. He has two bosses, one a functional manager and the other a divisional manager. Tick Tock, Inc. has a
a. functional structure.
b. divisional structure.
c. geographic structure.
d. matrix structure.
e. product structure.

ANS: PTS: 1 DIF: 2 REF: 274
NAT: AACSB Analytic | Creation of Value TYP: A

47. Boars’ Nest Distributors is continually hampered by an inability to adapt to an unstable environment. Which of the following is a plausible explanation as to why?
a. Boars’ Nest’s structure is too loose.
b. Boars’ Nest’s structure is too horizontal.
c. Boars’ Nest uses a vertical structure.
d. All of these.
e. Both Boars’ Nest’s structure is too loose and structure is too horizontal.

ANS: PTS: 1 DIF: 3 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: A

48. Makai’s Marketing Mix (MMM) does not use its resources wisely. The employees at MMM spend too much time in meetings and not enough time focusing on the task at hand. MMM’s management should consider changing the organizational structure from ____ to ____.
a. horizontal, vertical
b. team based, horizontal
c. vertical, team based
d. mechanistic, rigid
e. team-based, virtual network

ANS: PTS: 1 DIF: 3 REF: 273
NAT: AACSB Analytic | Creation of Value TYP: A

49. Which of the following structures is an incorrect fit in an unstable organizational environment?
a. A horizontal structure
b. A vertical structure
c. A loose organizational structure
d. An organic structure
e. All of these.

ANS: PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

50. Which of the following is a contemporary approach to structural design in departmentalization?
a. Functional
b. Divisional
c. Traditional divisions
d. Teams
e. Geographic-based

ANS: PTS: 1 DIF: 1 REF: 280
NAT: AACSB Analytic | Creation of Value TYP: F

51. The team approach to departmentalization is a response to
a. lack of participative teams.
b. centralized decision-making.
c. the competitive global environment.
d. All of these.
e. Both lack of participative teams and centralized decision-making.

ANS: PTS: 1 DIF: 2 REF: 275
NAT: AACSB Analytic | Creation of Value TYP: F

52. The ____ is the product or functional boss, who is responsible for one side of the matrix.
a. matrix boss
b. production supervisor
c. department boss
d. top leader
e. two-boss employee

ANS: PTS: 1 DIF: 2 REF: 275
NAT: AACSB Analytic | Creation of Value TYP: F

53. ____ are brought together as a formal department in the organization.
a. Cross-functional teams
b. Permanent teams
c. Formal teams
d. Ad-hoc teams
e. Task teams

ANS: PTS: 1 DIF: 1 REF: 276
NAT: AACSB Analytic | Creation of Value TYP: F

54. ____ is an organization structure that divides the major functions of the organization into separate companies.
a. The diversification approach
b. The team approach
c. The virtual network approach
d. The BCG approach
e. The functional approach

ANS: PTS: 1 DIF: 2 REF: 276
NAT: AACSB Analytic | Information Technologies TYP: F

55. Walt works for a large company. Recently, his organization began to contract out such functions as training, engineering, and computer service. This approach is consistent with a
a. functional structure.
b. team structure.
c. divisional structure.
d. virtual network structure
e. service structure.

ANS: PTS: 1 DIF: 2 REF: 276
NAT: AACSB Analytic | Information Technologies TYP: A

56. ____ is an organization structure that divides the major functions of the organization into separate companies and coordinates their activities from a small headquarters organization.
a. The diversification approach
b. The team approach
c. The virtual network approach
d. The BCG approach
e. The functional approach

ANS: PTS: 1 DIF: 2 REF: 276
NAT: AACSB Analytic | Information Technologies TYP: F

57. In the ____ approach, a manufacturing company uses outside suppliers to provide entire chunks of a product, which are then assembled into a final product by a handful of workers.
a. virtual network
b. modular
c. virtual organization
d. team
e. matrix

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

58. All of the following are advantages of a functional structure EXCEPT
a. economies of scale.
b. excellent coordination between functions.
c. in-depth skill specialization and development.
d. high quality technical problem solving.
e. career progress within functional departments.

ANS: PTS: 1 DIF: 3 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

59. An advantage of functional structures is the
a. resulting economies of scale.
b. enlarged tasks for employees.
c. easy pinpointing of responsibility for product problems.
d. development of general management skills.
e. flexibility in an unstable environment.

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

60. Shooting Star, Inc. has slow response to external changes, centralized decision making, and poor coordination across departments. It is likely structured
a. along divisional lines.
b. along functional lines.
c. based on the team approach.
d. based on the virtual network approach.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: A

61. Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and decisions are backing up at the top of the organization. Organ Rentals uses a ____ structure.
a. geographic
b. product
c. functional
d. matrix
e. team-based

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: A

62. All of the following are advantages of a divisional structure EXCEPT
a. high concern for customers’ needs.
b. fast response, flexibility in an unstable environment.
c. emphasis on overall product and division goals.
d. development of general management skills.
e. there is little duplication of services across divisions.

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

63. Which is an advantage of the divisional structure?
a. Concern for customers’ needs is high
b. There is little duplication of services across divisions
c. There is good coordination across divisions
d. Top management retains tight control of the organization
e. There is no competition for corporate resources

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

64. Advantages of the matrix structure include
a. it increases employee participation.
b. it makes efficient use of human resources.
c. it works well in a changing environment.
d. it develops both general and specialist management skills.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

65. Which of the following is(are) an advantage of team structure?
a. Increased barriers among departments
b. Unplanned decentralization
c. Time and resources spent on meetings
d. Less response time, quicker decisions
e. All of these

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

66. The use of teams may lead to too much
a. division of labor.
b. decentralization.
c. authority and responsibility in top management’s hands.
d. formalization.
e. narrow span of management.

ANS: PTS: 1 DIF: 2 REF: 280
NAT: AACSB Analytic | Creation of Value TYP: F

67. Disadvantages of the virtual network approach include
a. a lack of hands-on control.
b. the possibility of losing an important part of the organization.
c. weakened employee loyalty.
d. all of these.
e. a lack of hands-on control and weakened employee loyalty.

ANS: PTS: 1 DIF: 2 REF: 280
NAT: AACSB Analytic | Creation of Value TYP: F

68. Theresa works in an organization where coordination across organizational units is poor and the units perceived themselves to be in competition with one another for organizational resources. These characteristics are consistent with which of the following structures?
a. A matrix structure
b. A functional structure
c. A divisional structure
d. A team-based structure
e. A virtual network structure

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: A

69. The matrix structure violates which of the following principles of management?
a. Unity of direction
b. Unity of command
c. Work specialization
d. Division of labor
e. Span of management

ANS: PTS: 1 DIF: 2 REF: 279
NAT: AACSB Analytic | Creation of Value TYP: A

70. All of the following are the major disadvantages of the matrix structure EXCEPT
a. it generates a large amount of conflict.
b. managers spend much time resolving conflict.
c. the confusion caused by the dual chain of command.
d. the power imbalance that can result between the sides of the matrix.
e. enlarged tasks for employees.

ANS: PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

71. The biggest advantage to a virtual network approach is ____ and ____ on a global scale.
a. flexibility; competitiveness
b. coordination; organization
c. communication; organization
d. communication; no cost
e. flexibility; coordination

ANS: PTS: 1 DIF: 2 REF: 280
NAT: AACSB Analytic | Creation of Value TYP: F

72. Which of the following structures is the leanest of all organization forms because little supervision is required?
a. Functional approach
b. Virtual network approach
c. Team approach
d. Matrix approach
e. Divisional approach

ANS: PTS: 1 DIF: 2 REF: 280
NAT: AACSB Analytic | Creation of Value TYP: F

73. Which of the following happens as organizations grow?
a. Positions and departments are deleted
b. Management layers are eliminated to save cost
c. Managers have to find ways to tie different departments
d. Top management becomes more autocratic
e. None of these

ANS: PTS: 1 DIF: 2 REF: 281
NAT: AACSB Analytic | Creation of Value TYP: F

74. Coordination is defined as
a. the ability of the organization to produce timely products.
b. the quality of collaboration across departments.
c. differentiation.
d. the quantity of goods produced by the organization.
e. all of these.

ANS: PTS: 1 DIF: 1 REF: 281
NAT: AACSB Analytic | Creation of Value TYP: F

75. Innovative Creations Corporation is designed along functional lines. New product development is very slow and the process is plagued by many problems. One of the problems is that the people in marketing never communicate with the people in production. This is an example of poor
a. coordination.
b. planning.
c. motivating.
d. leading.
e. controlling.

ANS: PTS: 1 DIF: 2 REF: 281
NAT: AACSB Analytic | Creation of Value TYP: A

76. When the organization is structured along ____ lines, coordination is required.
a. functional
b. divisional
c. team
d. all of these
e. functional or divisional

ANS: PTS: 1 DIF: 2 REF: 281
NAT: AACSB Analytic | Creation of Value TYP: F

77. The outcome of information and cooperation is
a. organization.
b. planning.
c. coordination.
d. differentiation.
e. controlling.

ANS: PTS: 1 DIF: 2 REF: 282
NAT: AACSB Analytic | Creation of Value TYP: F

78. A task force is a ____ committee formed to solve a specific problem.
a. standing
b. permanent
c. temporary
d. all of these
e. none of these

ANS: PTS: 1 DIF: 2 REF: 283
NAT: AACSB Analytic | Creation of Value TYP: F

79. Marissa was recently assigned to a committee whose task is to research new product opportunities. Once this group generates a list of six or seven viable options, it will be disbanded. This group is also known as a
a. team.
b. standing committee.
c. permanent committee.
d. task force.
e. none of these

ANS: PTS: 1 DIF: 2 REF: 283
NAT: AACSB Analytic | Creation of Value TYP: A

80. A(n) ____ is responsible for coordinating the activities of several departments.
a. department manager
b. line manager
c. project manager
d. operative
e. moderating manager

ANS: PTS: 1 DIF: 1 REF: 283
NAT: AACSB Analytic | Creation of Value TYP: F

81. Lisa is responsible for coordinating the efforts of several different departments. Which of the following titles best describes her position?
a. Department manager
b. Middle manager
c. First-level supervisor
d. Project manager
e. Chairman of the board

ANS: PTS: 1 DIF: 2 REF: 283
NAT: AACSB Analytic | Creation of Value TYP: A

82. Typically, project managers have authority over ____ but not over ____ assigned to it.
a. people, the project
b. the project, people
c. resources, the project
d. people, other resources
e. finances, products

ANS: PTS: 1 DIF: 2 REF: 283
NAT: AACSB Analytic | Creation of Value TYP: F

83. Which of the following leads to strong coordination across functional areas and greater flexibility in responding to changes in the environments?
a. Reengineering
b. Layoffs
c. Downsizing
d. A temporary committee
e. An ad hoc committee

ANS: PTS: 1 DIF: 1 REF: 282
NAT: AACSB Analytic | Creation of Value TYP: F

84. An organization strives for internal efficiency with a(n) ____ strategy.
a. integration
b. diversification
c. differentiation
d. defensive
e. cost leadership

ANS: PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

85. With a(n) ____ strategy, the organization attempts to develop innovative products unique to the market.
a. differentiation
b. integration
c. reengineering
d. cost leadership
e. defensive

ANS: PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

86. A pure functional structure is most appropriate for achieving
a. innovation.
b. differentiation.
c. internal efficiency goals.
d. flexibility.
e. all of these

ANS: PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

87. Which of the following structures is most consistent with a strategy of stability?
a. Team based structure
b. Organic structure
c. Matrix structure
d. Functional structure
e. Learning structure

ANS: PTS: 1 DIF: 2 REF: 286
NAT: AACSB Analytic | Creation of Value TYP: F

88. The pure functional structure does not enable the organization to be
a. cost leader.
b. efficient.
c. flexible.
d. stable.
e. All of these.

ANS: PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

89. Which of the following structures works best in an uncertain organizational environment?
a. A tight structure
b. A mechanistic structure
c. A horizontal structure
d. A functional structure
e. A vertical structure

ANS: PTS: 1 DIF: 2 REF: 286
NAT: AACSB Analytic | Creation of Value TYP: F

90. ____ works best in a stable organizational environment.
a. A loose organizational structure
b. A vertical structure
c. An organic structure
d. A horizontal structure
e. A loose organizational structure or an organic structure

ANS: PTS: 1 DIF: 2 REF: 282
NAT: AACSB Analytic | Creation of Value TYP: F

91. Which of the following is an incorrect fit in a stable organizational environment?
a. A tight structure
b. A rigid structure
c. A functional structure
d. A horizontal structure
e. A vertical structure

ANS: PTS: 1 DIF: 2 REF: 282
NAT: AACSB Analytic | Creation of Value TYP: F

92. The ____________ delineates the chain of command, indicates departmental tasks and how they fit together, and provides order and logic for the organization.
a. management chart
b. employee directory
c. structural table
d. administrative chart
e. organizational chart

ANS: PTS: 1 DIF: 2 REF: 262
NAT: AACSB Analytic | Strategy TYP: F

93. Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he or she has authority and responsibility for a distinct set of tasks. Employees are also aware of the company’s reporting structure as well as successive management levels all the way to the top. Rebecca’s company follows which principle?
a. Specialization principle
b. Unity of command principle
c. Scalar principle
d. Authority principle
e. Responsibility principle

ANS: PTS: 1 DIF: 3 REF: 264
NAT: AACSB Analytic | Strategy TYP: A

94. How does managerial authority flow through the organizational hierarchy?
a. Vertically
b. Sporadically
c. Horizontally
d. In a circular fashion
e. Authority is static – it does not flow

ANS: PTS: 1 DIF: 1 REF: 264
NAT: AACSB Analytic | Strategy TYP: F

95. Shoshanna is manager of a customer service firm where she oversees five subordinates. To help her subordinates learn more about the different roles within the company, Shoshanna regularly assigns them tasks that are not part of their normal routine. This is an example of:
a. Responsibility
b. Delegation
c. Authority
d. Chain of command
e. Irrational decision making

ANS: PTS: 1 DIF: 3 REF: 265
NAT: AACSB Analytic | Strategy TYP: A

96. Jacob, a customer service representative for AB Retailers, has seven levels of management between himself and the company’s CEO. In contrast, his friend Rhonda, a customer service representative for YZ Retailers, has only four levels of management between her and the company CEO. Compared to YZ, Jacob’s company has what type of organizational structure?
a. Narrow
b. Wide
c. Flat
d. Tall
e. Identical

ANS: PTS: 1 DIF: 3 REF: 267
NAT: AACSB Analytic | Strategy TYP: A

97. In times of crisis or risk of company failure, authority should be:
a. Decentralized
b. Centralized at the bottom
c. Centralized at the top
d. Spread through a wide span of management
e. Flat

ANS: PTS: 1 DIF: 2 REF: 269
NAT: AACSB Analytic | Strategy TYP: F

98. Salta Communications is a global telecommunications company that has operations on four continents. The CEO’s direct supervisors include VPs for the North American South American, European, and the Asian divisions. Salta can best be described as using what organizational structure?
a. Network
b. Matrix
c. Functional
d. Divisional
e. Geographic

ANS: PTS: 1 DIF: 3 REF: 273
NAT: AACSB Analytic | Strategy TYP: A

99. Juan is a top manager at I.F.L., a matrix organization. He oversees both the product and functional chains of command, and is responsible for maintaining a power balance between the two sides of the matrix. Juan is a(n):
a. Political leader
b. Functional leader
c. Divisional leader
d. Matrix leader
e. Top leader

ANS: PTS: 1 DIF: 3 REF: 275
NAT: AACSB Analytic | Individual Dynamics TYP: A

100. In the ________ structure, the organization is viewed as a central hub surrounded by a network of outside specialists which are sometimes spread all over the world.
a. virtual network
b. matrix
c. functional
d. divisional
e. geographic

ANS: PTS: 1 DIF: 1 REF: 277
NAT: AACSB Analytic | Strategy TYP: F

101. Flash Card Inc. recently underwent a significant company-wide change that involved revision of its manufacturing and leadership processes. The result of this was a stronger emphasis on horizontal coordination. This level of change is referred to as:
a. Reorganization
b. Reengineering
c. E-engineering
d. Strategic planning
e. Corporate structuring

ANS: PTS: 1 DIF: 3 REF: 282
NAT: AACSB Analytic | Strategy TYP: A

102. In __________ production, firms produce goods in batches of one or a few products designed to customer specification.
a. service
b. customer-induced
c. continuous process
d. small batch
e. mass

ANS: PTS: 1 DIF: 2 REF: 286
NAT: AACSB Analytic | Operations Management TYP: F

103. Swift Move Facilities manufacturers two different bicycle models. The company produces a high volume of products using standardized production runs. The company does very little product customization. Swift Move uses what type of technology structure?
a. Service production
b. Mass production
c. Large-batch production
d. Small-batch production
e. Continuous process production

ANS: PTS: 1 DIF: 3 REF: 286
NAT: AACSB Analytic | Operations Management TYP: A

104. In a ____________ organization, the entire work flow is mechanized in a sophisticated and complex form of production technology.
a. service production
b. mass production
c. large-batch production
d. small-batch production
e. continuous process production

ANS: PTS: 1 DIF: 2 REF: 287
NAT: AACSB Analytic | Operations Management TYP: F

105. _________ refers to the fact that services are perishable and cannot be stored in inventory.
a. Boundarylessness
b. Tangible output
c. Intangible output
d. Flexible operations
e. Centralization

ANS: PTS: 1 DIF: 2 REF: 289
NAT: AACSB Analytic | Operations Management TYP: F

106. Organizations such as Amazon.com, Google, Facebook, and Priceline.com are examples of firms that are based on:
a. Digital technology
b. Tangible output
c. Direct contact with customers
d. Mechanistic technology
e. Products rather than services

ANS: PTS: 1 DIF: 2 REF: 289
NAT: AACSB Analytic | Information Technologies TYP: F

CASE

Scenario – Javier Gomez

Javier is a veteran manager with Pixel International, Inc. (PII). Recently PII purchased a small business in the printing industry. Javier has been assigned the task of managing this new acquisition and is currently deciding how best to design its structure. Currently, employees are assigned to one of three departments, including sales, production, and legal defense.

1. In determining Javier’s span of management, he should consider all of the following EXCEPT
a. Is the work performed by subordinates stable and routine?
b. Do subordinates perform similar tasks?
c. Are rules and procedures defining task activities available?
d. Do Javier’s personal preferences and style favor a larger or small span?
e. All of these.

ANS:

PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value KEY: Scenario Questions
TYP: A

2. The analysis of whether the new division should be centralized or decentralized should include all of the following EXCEPT
a. the level of change and uncertainty in the environment.
b. corporate history and culture.
c. the threat of crisis or the risk of company failure.
d. the structure of competitors and customers.
e. all of these should be included.

ANS:

PTS: 1 DIF: 2 REF: 269
NAT: AACSB Analytic | Creation of Value KEY: Scenario Questions
TYP: A

3. Current departmentalization of Javier’s new division can be characterized primarily as
a. vertical functional.
b. divisional.
c. horizontal matrix.
d. team-based.
e. none of these.

ANS:

PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value KEY: Scenario Questions
TYP: A

4. If Javier organizes with a horizontal matrix structure, some potential advantages that he could anticipate include all of the following, EXCEPT
a. a more efficient use of resources.
b. greater flexibility and adaptability to a changing environment.
c. development of both general and specialist management skills.
d. decreased need for coordination among managers.
e. all of these are potential advantages.

ANS:

PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value KEY: Scenario Questions
TYP: F

COMPLETION

1. The deployment of organizational resources to achieve strategic goals is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

2. The framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

3. The visual representation of an organization’s structure is called the ____________________.

ANS:

PTS: 1 DIF: 2 REF: 262
NAT: AACSB Analytic | Creation of Value TYP: F

4. Division of labor is also known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 263
NAT: AACSB Analytic | Creation of Value TYP: F

5. The degree to which organizational tasks are subdivided into individual jobs is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 263
NAT: AACSB Analytic | Creation of Value TYP: F

6. The ____________________ is an unbroken line of authority that links all persons in an organization and shows who reports to whom.

ANS:

PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

7. When each employee is held accountable to only one supervisor, it is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

8. The ____________________ refers to a clearly defined line of authority in the organization that includes all employees.

ANS:

PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

9. The three characteristics of authority are that it must be ____________________, ____________________, and ____________________.

ANS:

PTS: 1 DIF: 3 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

10. ____________________ is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.

ANS:

PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

11. ____________________ is the duty to perform the task or activity an employee has been assigned.

ANS:

PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

12. ____________________ means that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

ANS:

PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

13. ____________________ is the process managers use to transfer authority and responsibility to positions below them in the hierarchy.

ANS:

PTS: 1 DIF: 2 REF: 264
NAT: AACSB Analytic | Creation of Value TYP: F

14. ____________________ departments perform tasks that reflect the organization’s primary goal and mission, while ____________________ departments include all those that provide specialized skills in support of ____________________ departments.

ANS:

PTS: 1 DIF: 2 REF: 265
NAT: AACSB Analytic | Creation of Value TYP: F

15. ____________________ means that people in management positions have formal authority to direct and control immediate subordinates.

ANS:

PTS: 1 DIF: 2 REF: 265
NAT: AACSB Analytic | Creation of Value TYP: F

16. The ____________________ is the number of employees reporting to a supervisor.

ANS:

PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

17. A(n) ____________________ structure has a wide span, is horizontally dispersed, and has fewer hierarchical levels.

ANS:

PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

18. A(n) ____________________ structure has an overall narrow span and more hierarchical levels.

ANS:

PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

19. With ____________________, decision authority is pushed downward to lower organization levels.

ANS:

PTS: 1 DIF: 2 REF: 268
NAT: AACSB Analytic | Creation of Value TYP: F

20. ____________________ means that decision authority is located near the top of the organization.

ANS:

PTS: 1 DIF: 2 REF: 268
NAT: AACSB Analytic | Creation of Value TYP: F

21. A(n) ____________________ structure is the grouping of positions into departments based on similar skills, expertise, and resource use.

ANS:

PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

22. The ____________________ structure occurs when departments are grouped together based on organizational outputs.

ANS:

PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

23. The divisional structure is sometimes called a(n) ____________________, ____________________, or ____________________.

ANS:

PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

24. An alternative for assigning divisional responsibility is to group company activities by ____________________.

ANS:

PTS: 1 DIF: 2 REF: 273
NAT: AACSB Analytic | Creation of Value TYP: F

25. The ____________________, combines aspects of both functional and divisional structures simultaneously, in the same part of the organization.

ANS:

PTS: 1 DIF: 2 REF: 273
NAT: AACSB Analytic | Creation of Value TYP: F

26. ____________________ teams consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems.

ANS:

PTS: 1 DIF: 2 REF: 275
NAT: AACSB Analytic | Creation of Value TYP: F

27. In the ____________________ approach of structural design, departments are independent, contracting services to the central hub for a profit.

ANS:

PTS: 1 DIF: 2 REF: 276
NAT: AACSB Analytic | Creation of Value TYP: F

28. The ____________________ structure means that the firm subcontracts many of its major functions to separate companies and coordinates their activities from a small headquarters organization.

ANS:

PTS: 1 DIF: 2 REF: 276
NAT: AACSB Analytic | Creation of Value TYP: F

29. The ____________________ approach is when a manufacturing company uses outside suppliers to provide large components of the product, which are then assembled into a final product by a few workers.

ANS:

PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

30. The quality of collaboration across departments is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 281
NAT: AACSB Analytic | Creation of Value TYP: F

31. A(n) ____________________ is a temporary team designed to solve a short-term problem involving several departments.

ANS:

PTS: 1 DIF: 2 REF: 283
NAT: AACSB Analytic | Creation of Value TYP: F

32. A(n) ____________________ is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.

ANS:

PTS: 1 DIF: 2 REF: 283
NAT: AACSB Analytic | Creation of Value TYP: F

33. ____________________ is the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

ANS:

PTS: 1 DIF: 2 REF: 282
NAT: AACSB Analytic | Creation of Value TYP: F

34. A(n) ____________________ structure is most appropriate when the external environment is stable.

ANS:

PTS: 1 DIF: 2 REF: 285
NAT: AACSB Analytic | Creation of Value TYP: F

35. __________ refers to services that are perishable and, unlike physical products, cannot be stored in inventory.

ANS:

PTS: 1 DIF: 2 REF: 289
NAT: AACSB Analytic | Operations Management TYP: F

SHORT ANSWER

1. List the five approaches to departmentalization.

ANS:

PTS: 1 DIF: 2 REF: 270
NAT: AACSB Analytic | Creation of Value TYP: F

2. List three disadvantages of the divisional structure.

ANS:

PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

3. List the advantages of the virtual network structure.

ANS:

PTS: 1 DIF: 2 REF: 278
NAT: AACSB Analytic | Creation of Value TYP: F

4. List the three basic types of production technology.

ANS:

PTS: 1 DIF: 2 REF: 286
NAT: AACSB Analytic | Operations Management TYP: F

5. Describe service technology.

ANS:

PTS: 1 DIF: 2 REF: 289
NAT: AACSB Analytic | Operations Management TYP: F

ESSAY

1. Compare and contrast authority, responsibility, accountability, and delegation.

ANS:

PTS: 1 DIF: 3 REF: 264-265
NAT: AACSB Analytic | Creation of Value TYP: F

2. Briefly explain the concept of line and staff departments and authority.

ANS:

PTS: 1 DIF: 2 REF: 265
NAT: AACSB Analytic | Creation of Value TYP: F

3. Define span of management and explain if there is an ideal span of management.

ANS:

PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

4. List the factors that are associated with less supervisor involvement and thus larger spans of control.

ANS:

PTS: 1 DIF: 2 REF: 267
NAT: AACSB Analytic | Creation of Value TYP: F

5. Identify the three factors that typically influence centralization versus decentralization.

ANS:

PTS: 1 DIF: 2 REF: 269
NAT: AACSB Analytic | Creation of Value TYP: F

6. What is the horizontal matrix approach to departmentalization and what are its main advantages?

ANS:

PTS: 1 DIF: 2 REF: 273-278
NAT: AACSB Analytic | Creation of Value TYP: F

7. What is(are) the difference(s) between cross-functional and permanent teams?

ANS:

PTS: 1 DIF: 2 REF: 275-276
NAT: AACSB Analytic | Group Dynamics TYP: F

8. What is the team approach to departmentalization and what are its main disadvantages?

ANS:

PTS: 1 DIF: 2 REF: 275-276
NAT: AACSB Analytic | Group Dynamics TYP: F

9. Define task forces and project management.

ANS:

PTS: 1 DIF: 1 REF: 283
NAT: AACSB Analytic | Creation of Value TYP: F

10. Describe reengineering and what it involves.

ANS:

PTS: 1 DIF: 2 REF: 282
NAT: AACSB Analytic | Creation of Value TYP: F

Chapter 12—Managing Human Resources

TRUE/FALSE

1. Hiring and keeping quality employees is one of the most urgent concerns for today’s organizations.

ANS: PTS: 1 DIF: 1 REF: 323
NAT: AACSB Analytic | HRM TYP: F

2. The set of activities that are undertaken to attract, develop and maintain an effective work force refers to human resource management.

ANS: PTS: 1 DIF: 1 REF: 324
NAT: AACSB Analytic | HRM TYP: F

3. Human resource management is a matching process, integrating the federal laws with employee skills.

ANS: PTS: 1 DIF: 2 REF: 324
NAT: AACSB Analytic | HRM TYP: F

4. All managers are involved in human resource management.

ANS: PTS: 1 DIF: 2 REF: 324
NAT: AACSB Analytic | HRM TYP: F

5. A key element of the strategic approach to human resource management argues that human resource management is not a matching process and managers should avoid attempts to match or integrate employees to organization’s strategy and goals.

ANS: PTS: 1 DIF: 2 REF: 324
NAT: AACSB Analytic | HRM TYP: F

6. The three primary goals of HRM are to attract the right people, manage talent so people achieve their potential, and maintain the workforce over the long term.

ANS: PTS: 1 DIF: 2 REF: 325
NAT: AACSB Analytic | HRM TYP: F

7. The economic value of the knowledge, experience, skills, and capabilities of employees refers to personal capital.

ANS: PTS: 1 DIF: 2 REF: 325
NAT: AACSB Analytic | HRM TYP: F

8. Discrimination in employment on the basis of race or religion is prohibited by the Civil Rights Act of 1964.

ANS: PTS: 1 DIF: 1 REF: 327
NAT: AACSB Analytic | HRM TYP: F

9. The Civil Rights Act of 1964 created the Equal Employment Opportunity Commission.

ANS: PTS: 1 DIF: 1 REF: 327
NAT: AACSB Analytic | HRM TYP: F

10. Affirmative action requires that an employer take positive steps to guarantee promotion from within.

ANS: PTS: 1 DIF: 2 REF: 327
NAT: AACSB Analytic | HRM TYP: F

11. Affirmative action is a policy requiring employers to take positive steps to guarantee equal opportunities for people within protected groups.

ANS: PTS: 1 DIF: 1 REF: 327
NAT: AACSB Analytic | HRM TYP: F

12. Prohibition of discrimination of qualified individuals by employers on the basis of disability and the requirement that “reasonable accommodations” be provided are enforced by the Americans with Disabilities Act of 1990.

ANS: PTS: 1 DIF: 1 REF: 328
NAT: AACSB Analytic | HRM TYP: F

13. Vocational Rehabilitation Act provides for possible compensatory and punitive damages plus traditional back pay for cases of intentional discrimination.

ANS: PTS: 1 DIF: 2 REF: 328
NAT: AACSB Analytic | HRM TYP: F

14. The Family and Medical Leave Act established mandatory safety and health standards in organizations for working families.

ANS: PTS: 1 DIF: 1 REF: 328
NAT: AACSB Analytic | HRM TYP: F

15. Sexual harassment is a violation of Title VII of the Civil Rights Act.

ANS: PTS: 1 DIF: 2 REF: 328
NAT: AACSB Analytic | HRM TYP: F

16. Employability and personal responsibility are part of the old social contract between employees and employers.

ANS: PTS: 1 DIF: 2 REF: 329
NAT: AACSB Analytic | HRM TYP: F

17. Employability and personal responsibility are part of the new social contract between employees and employers.

ANS: PTS: 1 DIF: 2 REF: 330
NAT: AACSB Analytic | HRM TYP: F

18. Standard training programs and routine jobs are part of the old social contract between employees and employers.

ANS: PTS: 1 DIF: 2 REF: 330
NAT: AACSB Analytic | HRM TYP: F

19. Challenging assignments and creative development opportunities are part of the new social contract between employees and employers.

ANS: PTS: 1 DIF: 2 REF: 330
NAT: AACSB Analytic | HRM TYP: F

20. People who work for an organization, but not on a permanent or full-time basis are called “employees of choice.”

ANS: PTS: 1 DIF: 2 REF: 331
NAT: AACSB Analytic | HRM TYP: F

21. An “employer of choice” is a company that is highly attractive to potential employees because of human resources practices that focuses on tangible and intangible benefits.

ANS: PTS: 1 DIF: 2 REF: 331
NAT: AACSB Analytic | HRM TYP: F

22. Unfortunately, today, part-time and temporary workers are not used by most companies.

ANS: PTS: 1 DIF: 1 REF: 331
NAT: AACSB Analytic | HRM TYP: F

23. Telecommuting means using computers and telephones at the office.

ANS: PTS: 1 DIF: 1 REF: 332
NAT: AACSB Analytic | HRM TYP: F

24. The first three steps involved in attracting an effective work force are HR planning, choosing recruiting sources, and selecting the candidate.

ANS: PTS: 1 DIF: 2 REF: 333
NAT: AACSB Analytic | HRM TYP: F

25. Human resource specialists, with the matching model, exploit the newly hired employees.

ANS: PTS: 1 DIF: 2 REF: 333
NAT: AACSB Analytic | HRM TYP: F

26. Human resource planning refers to the forecasting of human resource needs and the projected matching of individuals with expected job vacancies.

ANS: PTS: 1 DIF: 2 REF: 333
NAT: AACSB Analytic | HRM TYP: F

27. One of the questions that human resource planning should consider includes “what is the profit margin and inventory turnover rate?”

ANS: PTS: 1 DIF: 2 REF: 333
NAT: AACSB Analytic | HRM TYP: F

28. Recruiting activities can be divided into (1) internal recruiting including “promote from within” policies, and (2) external recruiting including the use of headhunters.

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: F

29. A systematic process of gathering and interpreting information about the essential duties refers to job design.

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: F

30. The process of determining the skills, abilities, and other attributes a person needs to perform a particular job refers to orientation.

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: F

31. Research shows that realistic job previews lower employee satisfaction and increase turnover.

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: F

32. Affirmative action refers to the use of goals, timetables, or other methods in recruiting to promote the hiring, development, and retention of protected groups.

ANS: PTS: 1 DIF: 2 REF: 335
NAT: AACSB Analytic | HRM TYP: F

33. Getting referrals from current employees is a highly effective method used for recruiting.

ANS: PTS: 1 DIF: 2 REF: 336
NAT: AACSB Analytic | HRM TYP: F

34. One of the fastest-growing approaches to recruiting today is the use of the Internet, called E-cruiting.

ANS: PTS: 1 DIF: 1 REF: 335
NAT: AACSB Analytic | HRM TYP: F

35. A one-way communication channel that allows the organization to obtain information about the applicant is an interview.

ANS: PTS: 1 DIF: 1 REF: 338
NAT: AACSB Analytic | HRM TYP: F

36. Job description is the process of determining the skills, abilities, and other attributes a person needs to perform a particular job.

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: F

37. A virtual interview is an interview in which the candidate meets with several interviewers who take turns asking questions.

ANS: PTS: 1 DIF: 2 REF: 340
NAT: AACSB Analytic | HRM TYP: F

38. A device for collecting information about an applicant’s education, previous job experience, and other background characteristics refers to a resume.

ANS: PTS: 1 DIF: 2 REF: 338
NAT: AACSB Analytic | HRM TYP: F

39. A written test designed to measure a particular attribute such as intelligence or aptitude is called an employment test.

ANS: PTS: 1 DIF: 1 REF: 340
NAT: AACSB Analytic | HRM TYP: F

40. Assessment centers are normally located in a firm’s accounting department and have the responsibility of assessing other departments for the costs involved with human resource management.

ANS: PTS: 1 DIF: 1 REF: 341
NAT: AACSB Analytic | HRM TYP: F

41. Orientation tests may include intelligence tests, aptitude and ability tests, and personality inventories.

ANS: PTS: 1 DIF: 2 REF: 340
NAT: AACSB Analytic | HRM TYP: F

42. An example of an in-basket simulation would require the applicant to play the role of a manager who must decide how to respond to ten memos in his or her in-basket within a two-hour period.

ANS: PTS: 1 DIF: 3 REF: 341
NAT: AACSB Analytic | HRM TYP: F

43. According to MANAGER SHOPTALK in chapter 12, job applicants should wear clothing that makes a fashion statement to interviews.

ANS: PTS: 1 DIF: 1 REF: 339
NAT: AACSB Analytic | HRM TYP: F

44. Recruiters are now viewing the profiles and pictures of candidates on social networking sites such as Facebook and MySpace.

ANS: PTS: 1 DIF: 1 REF: 341
NAT: AACSB Analytic | HRM TYP: F

45. Training and development represent a planned effort by an organization to facilitate employees’ learning of job-related skills and behaviors.

ANS: PTS: 1 DIF: 2 REF: 342
NAT: AACSB Analytic | HRM TYP: F

46. A type of training in which an experienced employee “adopts” a new employee to teach him or her how to perform job duties is known as on-the-job training.

ANS: PTS: 1 DIF: 2 REF: 344
NAT: AACSB Analytic | HRM TYP: F

47. A corporate university is an in-house training and education facility that offers broad-based learning opportunities for employees.

ANS: PTS: 1 DIF: 2 REF: 344
NAT: AACSB Analytic | HRM TYP: F

48. An in-house training and education facility that offers broad-based learning opportunities for employees refers to on-the-job training.

ANS: PTS: 1 DIF: 2 REF: 344
NAT: AACSB Analytic | HRM TYP: F

49. Coaching is when an experienced employee guides and supports a less-experienced employee.

ANS: PTS: 1 DIF: 2 REF: 344
NAT: AACSB Analytic | HRM TYP: F

50. Coaching is a method of directing, instructing and training a person with the goal to develop specific management skills.

ANS: PTS: 1 DIF: 2 REF: 344
NAT: AACSB Analytic | HRM TYP: F

51. Job evaluation comprises the steps of observing and assessing employee performance, recording the assessment, and providing feedback to the employee.

ANS: PTS: 1 DIF: 2 REF: 345
NAT: AACSB Analytic | HRM TYP: F

52. A process that uses multiple raters, including self-rating, to appraise employee performance and guide development refers to 180-degree feedback.

ANS: PTS: 1 DIF: 2 REF: 345
NAT: AACSB Analytic | HRM TYP: F

53. Managers must acknowledge that jobs are multidimensional and job performances may be multidimensional as well to obtain an accurate performance rating.

ANS: PTS: 1 DIF: 2 REF: 345
NAT: AACSB Analytic | HRM TYP: F

54. BARS stand for Behaviorally Administered Rating Scale and is used to measure performance evaluation errors.

ANS: PTS: 1 DIF: 3 REF: 346
NAT: AACSB Analytic | HRM TYP: F

55. A type of rating error that occurs when an employee receives the same rating on all dimensions regardless of his or her performance on individual ones refers to the halo effect.

ANS: PTS: 1 DIF: 2 REF: 345
NAT: AACSB Analytic | HRM TYP: F

56. BARS is a rating technique that relates an employee’s performance to specific job-related incidents.

ANS: PTS: 1 DIF: 2 REF: 346
NAT: AACSB Analytic | HRM TYP: F

57. Competency-based pay systems are also called skill-based pay systems.

ANS: PTS: 1 DIF: 1 REF: 347
NAT: AACSB Analytic | HRM TYP: F

58. The process of determining the value of jobs within an organization through an examination of job content refers to job evaluation.

ANS: PTS: 1 DIF: 2 REF: 348
NAT: AACSB Analytic | HRM TYP: F

59. Wage and salary surveys show what other organizations pay incumbents in jobs that match a sample of “key” jobs selected by the organization.

ANS: PTS: 1 DIF: 2 REF: 348
NAT: AACSB Analytic | HRM TYP: F

60. Pay-for-performance is incentive pay that ties at least part of compensation to employee effort and performance.

ANS: PTS: 1 DIF: 2 REF: 348
NAT: AACSB Analytic | HRM TYP: F

61. In the United States, due to the recessionary times, organizations offer only the benefits required by law.

ANS: PTS: 1 DIF: 3 REF: 348
NAT: AACSB Analytic | HRM TYP: F

62. Unfortunately, today’s organizations offer universal, “one-size-fits-all” benefits packages, rather than pay-for-performance.

ANS: PTS: 1 DIF: 2 REF: 348
NAT: AACSB Analytic | HRM TYP: F

63. An exit interview is an interview conducted with departing employees to determine the reasons for their termination.

ANS: PTS: 1 DIF: 2 REF: 349
NAT: AACSB Analytic | HRM TYP: F

64. Exit interviews are valuable HR tools only if the departing employee leaves voluntarily.

ANS: PTS: 1 DIF: 2 REF: 350
NAT: AACSB Analytic | HRM TYP: F

65. The value of an exit interview is to provide an excellent and inexpensive tool for learning about pockets of dissatisfaction within the organization and hence for reducing future turnover.

ANS: PTS: 1 DIF: 2 REF: 350
NAT: AACSB Analytic | HRM TYP: F

66. Finding the right people to apply new information technology for e-business is a current strategic issue of particular concern for HR managers.

ANS: PTS: 1 DIF: 2 REF: 325
NAT: AACSB Analytic | HRM TYP: F

67. Because the legal and regulatory environment is constantly changing, HR managers have to stay on top of issues that might have legal consequences.

ANS: PTS: 1 DIF: 2 REF: 327
NAT: AACSB Analytic | HRM TYP: F

68. The Family and Medical Leave Act prohibits gender-based differences in pay for substantially equal work.

ANS: PTS: 1 DIF: 2 REF: 328
NAT: AACSB Analytic | HRM TYP: F

69. Job security is an employee expectation that existed with the old social contract, but is no longer an expectation in the new social contract.

ANS: PTS: 1 DIF: 2 REF: 330
NAT: AACSB Analytic | HRM TYP: F

70. The percentage of contingent workers in the United States has shrunk as a result of the recession of the late 2010s.

ANS: PTS: 1 DIF: 2 REF: 331
NAT: AACSB Analytic | HRM TYP: F

71. Recruiting is sometimes referred to as talent acquisition to reflect the importance of the human factor in the organization’s success.

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: F

72. In the recruiting process, employers assess applicants’ characteristics in an attempt to determine the “fit” between the job and applicant characteristics.

ANS: PTS: 1 DIF: 2 REF: 337
NAT: AACSB Analytic | HRM TYP: F

73. It is okay for a job application to ask whether the applicant has a legal right to work in the United States.

ANS: PTS: 1 DIF: 2 REF: 338
NAT: AACSB Analytic | HRM TYP: F

74. Structured interviews allow the applicant a great deal of freedom in determining the course of the conversation, with the interviewer taking care not to influence the person’s remarks.

ANS: PTS: 1 DIF: 2 REF: 340
NAT: AACSB Analytic | HRM TYP: F

75. Cognitive tests assess such characteristics as openness to learning, agreeableness, responsibility, creativity, and emotional stability.

ANS: PTS: 1 DIF: 2 REF: 340
NAT: AACSB Analytic | HRM TYP: F

76. Training is typically used to refer to teaching people how to perform tasks related to their present jobs, while development means teaching people broader skills that are not only useful in their present jobs but also prepare them for greater responsibilities in future jobs.

ANS: PTS: 1 DIF: 2 REF: 342
NAT: AACSB Analytic | HRM TYP: F

77. A mentor is an experienced employee who guides and supports a less-experienced employee.

ANS: PTS: 1 DIF: 2 REF: 344
NAT: AACSB Analytic | HRM TYP: F

78. Skill-based pay means linking compensation to the specific tasks an employee performs.

ANS: PTS: 1 DIF: 2 REF: 347
NAT: AACSB Analytic | HRM TYP: F

79. Restructuring refers to intentionally reducing the company’s workforce to the point where the number of employees is deemed to be right for the company’s current situation.

ANS: PTS: 1 DIF: 2 REF: 349
NAT: AACSB Analytic | HRM TYP: F

MULTIPLE CHOICE

1. ____ refers to the activities undertaken to attract, develop, and maintain an effective workforce within an organization.
a. Human resource management
b. Recruitment
c. Talent search
d. Strategic management
e. Operations management

ANS: PTS: 1 DIF: 2 REF: 324
NAT: AACSB Analytic | HRM TYP: F

2. The strategic approach to human resource management recognizes key elements. Which of the following is NOT an ingredient in successful human resource management?
a. All managers are human resource managers.
b. Employees are viewed as assets.
c. Human resource management is a matching process.
d. Only top-line managers are predominantly human resource managers.
e. All of these are examples of key ingredients in human resource management.

ANS: PTS: 1 DIF: 2 REF: 324
NAT: AACSB Analytic | HRM TYP: F

3. All of the following are current strategic issues of particular concern to managers EXCEPT
a. right people to become more competitive on a global basis.
b. right people for improving quality, innovation, and customer service.
c. right people to become more competitive on a local basis.
d. right people to retain during mergers and acquisitions.
e. right people to apply new information technology for e-business.

ANS: PTS: 1 DIF: 2 REF: 325
NAT: AACSB Analytic | HRM TYP: F

4. All of the following are goals of human resource management EXCEPT
a. finding the right people for the job.
b. managing talent so people achieve their potential.
c. maintaining an effective work force.
d. turning over an effective workforce.
e. both attracting an effective work force and maintaining an effective work force.

ANS: PTS: 1 DIF: 1 REF: 325
NAT: AACSB Analytic | HRM TYP: F

5. Today, more than ever, strategic decisions are related to human resource considerations. Which of the following refers to the economic value of the knowledge, experience, skills, and capabilities of employees?
a. Human capital
b. Economic capital
c. Contingency assets
d. Capital assets
e. Economic assets

ANS: PTS: 1 DIF: 2 REF: 325
NAT: AACSB Analytic | HRM TYP: F

6. Which of the following created the Equal Employment Opportunity Commission?
a. Americans with Disabilities Act
b. Civil Rights Act
c. Equal Pay Act
d. Vocational Rehabilitation Act
e. Immigration Reform and Control Act

ANS: PTS: 1 DIF: 2 REF: 327
NAT: AACSB Analytic | HRM TYP: F

7. The hiring of applicants based on criteria that are not job-related is called
a. affirmative action.
b. equal employment opportunity.
c. discrimination.
d. reverse discrimination.
e. employment-at-will.

ANS: PTS: 1 DIF: 2 REF: 327
NAT: AACSB Analytic | HRM TYP: F

8. Lainie was denied a promotion to partner in her accounting firm because of her gender. Lainie is a victim of
a. discrimination.
b. affirmative action.
c. equal employment opportunity.
d. employment-at-will.
e. termination-at-will.

ANS: PTS: 1 DIF: 2 REF: 327
NAT: AACSB Analytic | HRM TYP: A

9. ____ is a policy requiring employers to be proactive in being certain that equal opportunity exists for all within their organization.
a. Equal employment opportunity
b. Discrimination
c. Reverse discrimination
d. Affirmative action
e. Employment-at-will

ANS: PTS: 1 DIF: 2 REF: 327
NAT: AACSB Analytic | HRM TYP: F

10. Greene, Inc. requires that all managers undergo gender sensitivity training with the intent of eliminating gender stereotypes in the organization. This is an example of
a. equal employment opportunity.
b. affirmative action.
c. cultural bias.
d. employment-at-will.
e. sexual harassment.

ANS: PTS: 1 DIF: 2 REF: 327
NAT: AACSB Analytic | HRM TYP: A

11. The ____ prohibits discrimination against qualified individuals by employers for a demand of “reasonable accommodation.”
a. Civil Rights Act
b. American with Disabilities Act
c. Vocational Rehabilitation Act
d. Family and Medical Leave Act
e. Equal Pay Act

ANS: PTS: 1 DIF: 2 REF: 328
NAT: AACSB Analytic | HRM TYP: F

12. Which of the following restricts mandatory retirement?
a. The Americans with Disabilities Act
b. The Immigration Reform and Control Act
c. The Vocational Rehabilitation Act
d. The Age Discrimination in Employment Act
e. The Vietnam-Era Veterans Readjustment Act

ANS: PTS: 1 DIF: 2 REF: 328
NAT: AACSB Analytic | HRM TYP: F

13. The ____ prohibits discrimination based on physical or mental disability.
a. Civil Rights Act
b. Immigration Reform and Control Act
c. Vocational Rehabilitation Act
d. Age Discrimination in Employment Act
e. Vietnam-Era Veterans Readjustment Act

ANS: PTS: 1 DIF: 2 REF: 328
NAT: AACSB Analytic | HRM TYP: F

14. Family and Medical Leave Act require employers to provide up to ____ weeks unpaid leave for childbirth, adoption, or family emergencies.
a. 8
b. 12
c. 16
d. 24
e. 52

ANS: PTS: 1 DIF: 3 REF: 328
NAT: AACSB Analytic | HRM TYP: F

15. Which Health/Safety law requires continued health insurance coverage (paid by employee) following termination?
a. Consolidated Omnibus Budget Reconciliation Act
b. Health Maintenance Organization Act
c. Occupational Safety and Health Act
d. Family and Medical Leave Act
e. None of these

ANS: PTS: 1 DIF: 3 REF: 328
NAT: AACSB Analytic | HRM TYP: F

16. ____ is part of the new social contract for employees.
a. Job security
b. A cog in the machine
c. Knowing
d. Employability, personal responsibility
e. Routine jobs

ANS: PTS: 1 DIF: 2 REF: 330
NAT: AACSB Analytic | HRM TYP: F

17. From the employer’s viewpoint, which of these is part of new social contract?
a. Standard training programs
b. Limited information
c. Incentive compensation
d. Routine jobs

ANS: PTS: 1 DIF: 2 REF: 330
NAT: AACSB Analytic | HRM TYP: F

18. ____ has led to the elimination of many positions in organizations.
a. Globalization
b. Insourcing
c. Differentiation
d. Restructuring
e. All of these

ANS: PTS: 1 DIF: 2 REF: 330
NAT: AACSB Analytic | HRM TYP: F

19. A(n) ____ is a company that is highly attractive to potential employees because of human resources practices that focus on tangible and intangible benefits, and that embraces a long-term view to solving immediate problems.
a. Fortune 500 company
b. employer of choice
c. socially responsible firm
d. rural firm
e. family-owned corporation

ANS: PTS: 1 DIF: 2 REF: 331
NAT: AACSB Analytic | HRM TYP: F

20. In the new workplace, ____ are people who work for an organization, but not on a permanent or full-time basis.
a. upper-level employees
b. direct-related workers
c. temporary employees
d. contingent workers
e. low-level employees

ANS: PTS: 1 DIF: 2 REF: 331
NAT: AACSB Analytic | HRM TYP: F

21. Which of the following means using computers and telecommunications equipment to do work without going to an office?
a. Telecommuting
b. Social Loafing
c. New social contract
d. Outsourcing
e. Realistic Job Preview

ANS: PTS: 1 DIF: 1 REF: 332
NAT: AACSB Analytic | HRM TYP: F

22. ____ is the first step in attracting an effective work force.
a. Selecting the candidate
b. Choosing recruiting sources
c. Applying the matching model
d. Human resource planning
e. Initiating change

ANS: PTS: 1 DIF: 1 REF: 333
NAT: AACSB Analytic | HRM TYP: F

23. ____ is the second step in attracting individuals who show signs of becoming valued, productive, and satisfied employees.
a. Selecting the candidate
b. Choosing recruiting procedures
c. Applying the matching model
d. Human resource planning
e. Initiating change

ANS: PTS: 1 DIF: 2 REF: 333
NAT: AACSB Analytic | HRM TYP: F

24. In utilizing the matching model of employee selection, the organization offers ____ and the employee offers ____.
a. contributions, inducements
b. inducements, contributions
c. contributions, pay and benefits
d. ability, training
e. skills, rewards

ANS: PTS: 1 DIF: 2 REF: 333
NAT: AACSB Analytic | HRM TYP: F

25. The forecasting of human resource needs and the projected matching of individuals with expected job vacancies is referred to as human resource
a. development.
b. organizing.
c. planning.
d. selection.
e. downsizing.

ANS: PTS: 1 DIF: 1 REF: 333
NAT: AACSB Analytic | HRM TYP: F

26. Bryan, who works in the human resource department, is interested in gathering data on the projected number of resignations and retirements over the next ten years. He is most likely performing which of the following activities?
a. Choosing a recruiting source
b. Selecting an employment candidate
c. Human resource planning
d. Welcoming new employees
e. Downsizing

ANS: PTS: 1 DIF: 2 REF: 333
NAT: AACSB Analytic | HRM TYP: A

27. All of the following are questions relevant to human resource planning EXCEPT
a. “What is the current turnover rate?”
b. “What is the volume of business expected to be over the next five years?”
c. “What was the volume of business over the past five years?
d. “How will new technology affect the organization?”
e. All of these are relevant questions for human resource planning.

ANS: PTS: 1 DIF: 2 REF: 333
NAT: AACSB Analytic | HRM TYP: F

28. Jenna has been given the assignment of determining how many new tellers her bank will need to hire over the next five years. Which of the following questions is irrelevant to her task?
a. How many tellers are expected to retire over the next five years?
b. What new technologies (e.g., automated teller machines) will be introduced over the next five years?
c. How many new branches does the bank expect to open over the next five years?
d. All of these are relevant
e. All of these are irrelevant

ANS: PTS: 1 DIF: 2 REF: 333
NAT: AACSB Analytic | HRM TYP: A

29. ____ is defined as activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied.
a. Selection
b. Recruiting
c. Training
d. Developing
e. Planning

ANS: PTS: 1 DIF: 1 REF: 334
NAT: AACSB Analytic | HRM TYP: F

30. An example of ____ is when current employees are given preference when a position opens in their organization.
a. discrimination
b. internal recruiting
c. nepotism
d. external recruiting
e. cannibalizing

ANS: PTS: 1 DIF: 1 REF: 334
NAT: AACSB Analytic | HRM TYP: F

31. ____ generates higher employee commitment, development, and satisfaction than does ____.
a. External recruiting, internal recruiting
b. External selection, internal selection
c. Internal recruiting, external recruiting
d. Internal recruiting, internal selection
e. Downsizing, monetary rewards

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: F

32. Conolly Company uses internal recruiting whenever possible. This practice
a. costs more than external recruiting.
b. decreases employee satisfaction.
c. generates increased employee commitment.
d. demotivates existing employee given limited socializing opportunities.
e. gives employees an upper hand in negotiations.

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: A

33. ____ is a systematic process of gathering and interpreting information about the essential duties.
a. A job analysis
b. A job listing
c. A job requirement
d. A job description
e. A realistic job preview

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: F

34. Which of the following is NOT a method used in external recruiting?
a. Private employment agencies
b. Employee referrals
c. Newspaper advertising
d. Employee resource chart
e. State employment services

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: F

35. Which of the following is a recruiting approach that gives applicants all pertinent and realistic information about the job and the organization?
a. Reality check
b. Affirmative action
c. Realistic job preview
d. Employment-at-will
e. Chart selection approach

ANS: PTS: 1 DIF: 1 REF: 334
NAT: AACSB Analytic | HRM TYP: F

36. ____ is a listing of job duties and desirable qualifications for a particular job.
a. A job analysis
b. A job listing
c. A job requirement
d. A job description
e. A realistic job previews

ANS: PTS: 1 DIF: 1 REF: 334
NAT: AACSB Analytic | HRM TYP: F

37. A(n) ____ typically lists job duties as well as desirable qualifications for a particular job.
a. job description
b. application form
c. assessment test
d. paper-and-pencil test
e. OJT

ANS: PTS: 1 DIF: 1 REF: 334
NAT: AACSB Analytic | HRM TYP: F

38. Rock Bottom, Inc. (RBI) has a relatively high turnover rate among its new employees. Recently, the human resource department conducted a series of interviews with employees who were choosing to leave RBI after a short period of time. It was concluded that unmet expectations were the primary reason these people were leaving so soon. RBI can begin to solve this problem by emphasizing
a. external recruiting.
b. affirmative action.
c. better training and development.
d. the use of realistic job previews.
e. employment-at-will.

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: A

39. Recruiting methods that are used to promote the hiring, development, and retention of “protected groups” are examples of
a. equal employment opportunity.
b. affirmative action.
c. illegal discrimination.
d. unfair labor practices.
e. nepotism.

ANS: PTS: 1 DIF: 2 REF: 335
NAT: AACSB Analytic | HRM TYP: F

40. Which of these is(are) part of new approaches to recruiting?
a. Recruiting welfare recipients
b. E-cruiting
c. Hiring former prison inmates
d. Non-traditional sources of employees
e. All of these

ANS: PTS: 1 DIF: 1 REF: 335-337
NAT: AACSB Analytic | HRM TYP: F

41. ____ dramatically extends the organization’s recruiting reach, offering access to a wider pool of applicants and saving time and money.
a. Competitor referrals
b. E-cruiting
c. Newspaper ads
d. Trade shows
e. Hiring older workers

ANS: PTS: 1 DIF: 2 REF: 335-336
NAT: AACSB Analytic | HRM TYP: F

42. Which of the following refers to the process of determining the skills, abilities, and other attributes a person needs to perform a particular job?
a. Recruiting
b. Training
c. Selection
d. Development
e. Orientation

ANS: PTS: 1 DIF: 1 REF: 337-338
NAT: AACSB Analytic | HRM TYP: F

43. Which of the following is a device for collecting information about an applicant’s education, previous job experience, and other background characteristics?
a. Employment test
b. An assessment center
c. An application form
d. An affirmative action form
e. A Privacy form

ANS: PTS: 1 DIF: 1 REF: 338
NAT: AACSB Analytic | HRM TYP: F

44. While interviews are ____, they are generally ____ predictors of subsequent job performance.
a. rarely used, not valid
b. widely used, not valid
c. rarely used, excellent
d. widely used, valid
e. painful, excellent

ANS: PTS: 1 DIF: 2 REF: 339
NAT: AACSB Analytic | HRM TYP: F

45. All of the following are selection devices used for assessing applicant qualifications EXCEPT
a. application form.
b. interview.
c. employment test.
d. assessment center.
e. drug usage test.

ANS: PTS: 1 DIF: 2 REF: 339-341
NAT: AACSB Analytic | HRM TYP: F

46. Which of these may include intelligence tests, aptitude and ability test, and personality inventories?
a. Assessment tests
b. Probability exams
c. Employment tests
d. Development tests
e. Culture exams

ANS: PTS: 1 DIF: 1 REF: 340
NAT: AACSB Analytic | HRM TYP: F

47. On employee applications and during interviews, it is appropriate to ask all of the following EXCEPT
a. race or color of skin.
b. if the applicant is over 18.
c. if the applicant has ever been convicted of a crime.
d. prior work experience.
e. if the applicant has a legal right to work in the United States.

ANS: PTS: 1 DIF: 2 REF: 338
NAT: AACSB Analytic | HRM TYP: F

48. ____ requires the applicant to play the role of a manager who must decide how to respond to ten memos in his or her in-basket within a two-hour period.
a. Multitasking
b. Employee motivation test
c. In-basket simulation
d. Employee capability test
e. Cold call simulation

ANS: PTS: 1 DIF: 2 REF: 341
NAT: AACSB Analytic | HRM TYP: F

49. According to MANAGER’S SHOPTALK in chapter 12, all of the following can make a good interview go bad EXCEPT
a. talking too much.
b. making eye contact.
c. failing to effectively close.
d. stretching the truth.
e. making a fashion statement.

ANS: PTS: 1 DIF: 2 REF: 339
NAT: AACSB Analytic | HRM TYP: F

50. One of the newest ways of gauging whether a candidate is right for the company is by checking
a. previous places of employment.
b. with references.
c. trial employment period.
d. aptitude tests.
e. social networking sites.

ANS: PTS: 1 DIF: 2 REF: 341
NAT: AACSB Analytic | HRM TYP: F

51. In ____, an experienced manager shows a new employee how to perform job duties.
a. on-the-job training
b. classroom training
c. orientation training
d. computer-assisted instruction
e. realistic job previews

ANS: PTS: 1 DIF: 1 REF: 344
NAT: AACSB Analytic | HRM TYP: F

52. The most common form of formal corporate training is
a. on-the-job training.
b. classroom training.
c. orientation training.
d. developmental training.
e. external training.

ANS: PTS: 1 DIF: 2 REF: 344
NAT: AACSB Analytic | HRM TYP: F

53. Pizza Deluxe University is an in-house center and education facility that offers broad-based learning opportunities for employees. Pizza Deluxe University would be considered a(n)
a. assessment center.
b. on-the-job training center.
c. orientation center.
d. corporate university.
e. learning community.

ANS: PTS: 1 DIF: 2 REF: 344
NAT: AACSB Analytic | HRM TYP: A

54. The process of observing and evaluating an employee’s performance, recording the assessment, and providing feedback to the employee is referred to as
a. orientation training.
b. classroom training.
c. a paper-and-pencil test.
d. performance appraisal.
e. none of these.

ANS: PTS: 1 DIF: 1 REF: 345
NAT: AACSB Analytic | HRM TYP: F

55. ____ provide more challenging assignments, prescribe new responsibilities, and help employees grow by expanding and developing their abilities.
a. Promotions
b. Appraisals
c. Evaluations
d. Endorsements
e. Coaching

ANS: PTS: 1 DIF: 2 REF: 344
NAT: AACSB Analytic | HRM TYP: F

56. Which of the following refers to a method of directing, instructing and training a person with the goal to develop specific management skills?
a. Mentoring
b. Shadowing
c. Coaching
d. Apprenticeship
e. Guiding

ANS: PTS: 1 DIF: 2 REF: 344
NAT: AACSB Analytic | HRM TYP: F

57. Which of the following is a process that uses multiple raters, including self-rating, to appraise employee performance and guide development?
a. A 360-degree feedback
b. Job evaluation
c. Multiple-rater appraisal
d. Performance appraisal interview
e. Homogeneity appraisal

ANS: PTS: 1 DIF: 1 REF: 345
NAT: AACSB Analytic | HRM TYP: F

58. Which of the following performance appraisal methods essentially evaluates employees by pitting them against one another?
a. Performance review ranking system
b. Semantic differential rating scale
c. Behaviorally anchored rating scale
d. Unidimensional rating scale
e. All of these

ANS: PTS: 1 DIF: 2 REF: 345
NAT: AACSB Analytic | HRM TYP: F

59. ____ is developed from critical incidents relating to job performance.
a. Performance appraisal interview
b. Semantic differential rating scale
c. Behaviorally anchored rating scale
d. Unidimensional rating scale
e. All of these

ANS: PTS: 1 DIF: 2 REF: 346
NAT: AACSB Analytic | HRM TYP: F

60. One of the most dangerous performance evaluation errors is ____, which places an employee into a class or category based on one or a few traits or characteristics.
a. homogeneity
b. the halo effect
c. stereotyping
d. diversion
e. leniency

ANS: PTS: 1 DIF: 1 REF: 345
NAT: AACSB Analytic | HRM TYP: F

61. Colby is a new interviewer who just finished an interview with Renee. Her professional style and her flawless grooming immediately struck him. Colby gave Renee a very good evaluation although her previous work experience and educational background were not that exceptional. What rating error did Colby succumb to?
a. Halo effect
b. Central tendency
c. Homogeneity
d. Leniency
e. General tendency

ANS: PTS: 1 DIF: 2 REF: 345
NAT: AACSB Analytic | HRM TYP: A

62. Which of the following refers to all monetary payments and all goods or commodities used in lieu of money to reward employees?
a. Bonus
b. Compensation
c. Wages
d. Incentive Pay
e. Point System

ANS: PTS: 1 DIF: 1 REF: 347
NAT: AACSB Analytic | HRM TYP: F

63. With ____, compensation is linked to the specific tasks that an employee performs.
a. skill-based pay
b. incentive pay
c. job-based pay
d. salary
e. competency-based pay

ANS: PTS: 1 DIF: 2 REF: 347
NAT: AACSB Analytic | HRM TYP: F

64. ____ is incentive pay that ties at least part of compensation to employee effort and performance.
a. Pay-for-performance
b. Seniority pay
c. Universal compensation plan
d. Cafeteria-plan
e. Group performance pay

ANS: PTS: 1 DIF: 2 REF: 348
NAT: AACSB Analytic | HRM TYP: F

65. ____ allow employees to select the benefits of greatest value to them.
a. Pay-for-performance
b. Cafeteria-plan benefits packages
c. Incentive pay
d. Group performance pay
e. Merit-based pay

ANS: PTS: 1 DIF: 2 REF: 348
NAT: AACSB Analytic | HRM TYP: F

66. Which are used to help determine why employees are leaving their jobs?
a. Termination interviews
b. Focus groups
c. Employment tests
d. Exit interviews
e. Assessment Centers

ANS: PTS: 1 DIF: 1 REF: 349
NAT: AACSB Analytic | HRM TYP: F

67. Recruiting and selecting employees involves which human resource management goal?
a. Implementing strategies
b. Managing talent
c. Maintaining an effective workforce
d. Finding the right people
e. Controlling strategies

ANS: PTS: 1 DIF: 2 REF: 325
NAT: AACSB Analytic | HRM TYP: F

68. Which of the following is tied to the goal of managing talent in organizations?
a. Labor relations
b. Job analysis
c. Wages and salary
d. HRM planning
e. Training and development

ANS: PTS: 1 DIF: 2 REF: 325
NAT: AACSB Analytic | HRM TYP: F

69. Which of the following is a key performance driver that is tied to human capital investments?
a. Revenue growth
b. Innovation
c. Workforce planning
d. Career development
e. Recruiting

ANS: PTS: 1 DIF: 2 REF: 326
NAT: AACSB Analytic | HRM TYP: F

70. Which legal act establishes mandatory safety and health standards in organizations?
a. Occupational Safety and Health Act
b. Consolidated Omnibus Budget Reconciliation Act
c. Family and Medical Leave Act
d. Americans with Disabilities Act
e. Civil Rights Act

ANS: PTS: 1 DIF: 2 REF: 328
NAT: AACSB Analytic | HRM TYP: F

71. Artie’s Pretzels is a small but well-known company that receives thousands of job applications every year, though it only fills about 50 positions annually. Company managers have learned that Artie’s human resource practices are one of the driving factors that attract potential employees. Artie’s Pretzels can be described as what type of organization?
a. Contingency employer
b. Employer of options
c. Employer of choice
d. Employer of necessity
e. Telecommuter-friendly employer

ANS: PTS: 1 DIF: 3 REF: 331
NAT: AACSB Analytic | HRM TYP: A

72. Which legal act underscored the need for well-written job descriptions and specifications that accurately reflect the mental and physical dimensions of jobs?
a. Vocational Rehabilitation Act
b. Accountability Act
c. Civil Rights Act
d. Americans with Disabilities Act
e. Patient Protection and Affordable Care Act

ANS: PTS: 1 DIF: 2 REF: 334
NAT: AACSB Analytic | HRM TYP: F

73. At GoodSpeak Telecommunications, employees receive a cash bonus when they submit names of people who subsequently accept employment with the company. This is an example of which innovation in recruiting?
a. Trade group networking
b. Social networking
c. Employee referral
d. Cold call recruiting
e. Geographic networking

ANS: PTS: 1 DIF: 2 REF: 336
NAT: AACSB Analytic | HRM TYP: A

74. Which of the following is inappropriate to ask on an employment application?
a. If the applicant is over 18
b. Where the applicant went to school
c. If the applicant has ever been convicted of a crime
d. Whether the applicant has any disabilities that might inhibit job performance
e. Applicant’s ancestry/ethnicity

ANS: PTS: 1 DIF: 2 REF: 338
NAT: AACSB Analytic | HRM TYP: F

75. What type of interview allows the applicant a great deal of freedom in determining the course of the conversation, bringing to light information that could otherwise remain concealed?
a. Nondirective interview
b. Structured interview
c. Panel interview
d. Biographical interview
e. Situational interview

ANS: PTS: 1 DIF: 2 REF: 340
NAT: AACSB Analytic | HRM TYP: F

76. Blayne is interviewing for an IT specialist position at a technology firm. His interviewer informs him that he will ask him a series of standardized questions that are being asked of every applicant interviewing for the same position. This can best be described as what type of interview?
a. Nondirective interview
b. Structured interview
c. Panel interview
d. Biographical interview
e. Situational interview

ANS: PTS: 1 DIF: 3 REF: 340
NAT: AACSB Analytic | HRM TYP: A

77. While on a job interview for an administrative position at a university, Alyssa was asked to respond to simulated memos and emails that are similar to those she would address if she was in that position. This is an example of a(n):
a. Cognitive ability test
b. Performance review
c. 360 degree feedback test
d. Work sample test
e. Assessment center

ANS: PTS: 1 DIF: 3 REF: 341
NAT: AACSB Analytic | HRM TYP: A

78. When an experienced employee guides and supports a newcomer or less-experienced employee, this is referred to as:
a. Mentoring
b. Coaching
c. Managing
d. Directing
e. Consulting

ANS: PTS: 1 DIF: 2 REF: 344
NAT: AACSB Analytic | HRM TYP: F

79. A junior VP at a financial services firm meets regularly with Edward, a retired businessman who is now in the business of directing, instructing, and training managers in the development of their personal competencies. Edward can best be described as a(n):
a. Enabler
b. Protege
c. Coach
d. Recruiter
e. Mentor

ANS: PTS: 1 DIF: 3 REF: 344
NAT: AACSB Analytic | HRM TYP: A

80. Sandra, a human resources manager at an advertising firm, is currently in the process of determining the value and worth of advertising executive positions within the agency. This is referred to as:
a. Compensation
b. Rightsizing
c. Wage and salary surveying
d. Incentive pay
e. Job evaluation

ANS: PTS: 1 DIF: 3 REF: 348
NAT: AACSB Analytic | HRM TYP: A

81. Intentionally reducing the company’s workforce to the point where the number of employees is deemed to be right for the company’s current situation is referred to as:
a. Restructuring
b. Rightsizing
c. Supersizing
d. Reengineering
e. Recruiting

ANS: PTS: 1 DIF: 2 REF: 349
NAT: AACSB Analytic | HRM TYP: F

CASE

Scenario – Gregory Trout

Gregory Trout has just received a memo explaining that because of his department’s success with the newly developed Trout, Inc., that his request for three new employees has been approved. Gregory now faces the challenge of working with the areas of human resource management in recruiting, selecting, training and maintaining effective employees.

1. To select high-potential individuals for management positions, what is the best selection device that Gregory could use?
a. interview.
b. employment test.
c. assessment center.
d. job application form.
e. None of these are essential.

ANS:

PTS: 1 DIF: 2 REF: 341 NAT: AACSB Analytic | HRM
KEY: Scenario Questions TYP: A

2. When making a performance evaluation, which of the following suggestions would NOT help Gregory?
a. Be personally knowledgeable about the employee’s job and performance levels
b. Be prepared to tell and sell his view to the employee when necessary
c. Give more frequent feedback to newer employees
d. All of these suggestions would be helpful.

ANS:

PTS: 1 DIF: 2 REF: 345 NAT: AACSB Analytic | HRM
KEY: Scenario Questions TYP: A

3. In recruiting and selecting employees for the new positions, Gregory will apply which human resource management goal?
a. Implementing strategies
b. Managing talent
c. Maintaining an effective workforce
d. Finding the right people
e. Controlling strategies

ANS:

PTS: 1 DIF: 2 REF: 325 NAT: AACSB Analytic | HRM
KEY: Scenario Questions TYP: A

4. In training employees for the new positions, Gregory will apply which human resource management goal?
a. Implementing strategies
b. Managing talent
c. Maintaining an effective workforce
d. Finding the right people
e. Controlling strategies

ANS:

PTS: 1 DIF: 2 REF: 325 NAT: AACSB Analytic | HRM
KEY: Scenario Questions TYP: A

COMPLETION

1. The term ____________________ refers to activities undertaken to attract, develop, and maintain an effective workforce within an organization.

ANS:

PTS: 1 DIF: 2 REF: 324 NAT: AACSB Analytic | HRM
TYP: F

2. ____________________ refers to the economic value of the knowledge, experience, skills, and capabilities of employees.

ANS:

PTS: 1 DIF: 2 REF: 325 NAT: AACSB Analytic | HRM
TYP: F

3. ____________________ is the hiring or promoting of applicants based on criteria that are not job relevant.

ANS

PTS: 1 DIF: 2 REF: 327 NAT: AACSB Analytic | HRM
TYP: F

4. A policy requiring employers to take positive steps to guarantee equal employment opportunities for people within protected groups is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 327 NAT: AACSB Analytic | HRM
TYP: F

5. ____________________ are people who work for an organization, but not on a permanent or full-time basis.

ANS:

PTS: 1 DIF: 2 REF: 331 NAT: AACSB Analytic | HRM
TYP: F

6. ____________________ means using computers and telecommunications equipment to perform work from home or another remote location.

ANS:

PTS: 1 DIF: 2 REF: 332 NAT: AACSB Analytic | HRM
TYP: F

7. With the ____________________, the organization and the individual attempt to match the needs, interests, and values that they offer each other.

ANS:

PTS: 1 DIF: 2 REF: 333 NAT: AACSB Analytic | HRM
TYP: F

8. ____________________ is the forecasting of human resource needs.

ANS:

PTS: 1 DIF: 2 REF: 333 NAT: AACSB Analytic | HRM
TYP: F

9. ____________________ is defined as “activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied.”

ANS:

PTS: 1 DIF: 2 REF: 334 NAT: AACSB Analytic | HRM
TYP: F

10. The systematic process of gathering and interpreting information about essential duties refers to ____________________.

ANS:

PTS: 1 DIF: 2 REF: 334 NAT: AACSB Analytic | HRM
TYP: F

11. The ____________________ outlines the knowledge, skills, education, physical abilities, and other characteristics needed to adequately perform the job.

ANS:

PTS: 1 DIF: 2 REF: 334 NAT: AACSB Analytic | HRM
TYP: F

12. A recruiting approach that gives applicants all pertinent and realistic information about the job and the organization is called a(n) ____________________.

ANS:
realistic
RJP

PTS: 1 DIF: 2 REF: 334 NAT: AACSB Analytic | HRM
TYP: F

13. A(n) ____________________ typically lists job duties as well as desirable qualifications for a particular job.

ANS:

PTS: 1 DIF: 2 REF: 334 NAT: AACSB Analytic | HRM
TYP: F

14. In the ____________________ process, employers attempt to determine the skills, abilities, and other attributes a person needs to perform a particular job.

ANS:

PTS: 1 DIF: 2 REF: 337 NAT: AACSB Analytic | HRM
TYP: F

15. The ____________________ is used to collect information about the applicant’s education, previous job experience, and other background characteristics.

ANS:

PTS: 1 DIF: 2 REF: 338 NAT: AACSB Analytic | HRM
TYP: F

16. A written test, designed to measure a particular attribute such as intelligence or aptitude, is called a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 340 NAT: AACSB Analytic | HRM
TYP: F

17. ____________________ present a series of managerial situations to a group of applicants over a period of time.

ANS:

PTS: 1 DIF: 2 REF: 341 NAT: AACSB Analytic | HRM
TYP: F

18. In ____________________, an experienced employee is asked to take a new employee “under his or her wing” and show the newcomer how to perform job duties.

ANS:

PTS: 1 DIF: 2 REF: 344 NAT: AACSB Analytic | HRM
TYP: F

19. A(n) ____________________ is an in-house training and education facility that offers broad-based learning opportunities for employees.

ANS:

PTS: 1 DIF: 2 REF: 344 NAT: AACSB Analytic | HRM
TYP: F

20. ____________________ comprises the steps of observing and assessing employee performance, recording and assessment, and providing feedback to the employee.

ANS:

PTS: 1 DIF: 2 REF: 345 NAT: AACSB Analytic | HRM
TYP: F

21. A process that uses multiple raters including self-rating, to appraise employee performance and guide development is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 345 NAT: AACSB Analytic | HRM
TYP: F

22. ____________________ occurs when an employee receives the same rating on all dimensions even if his or her performance is good on some dimensions and poor on others.

ANS:

PTS: 1 DIF: 2 REF: 345 NAT: AACSB Analytic | HRM
TYP: F

23. The ____________________ is developed from critical incidents pertaining to job performance. Each job performance scale is anchored with specific behavioral statements that describe varying degrees of performance.

ANS:

PTS: 1 DIF: 2 REF: 346 NAT: AACSB Analytic | HRM
TYP: F

24. The term ____________________ refers to (1) all monetary payments and (2) all goods or commodities used in lieu of money to reward employees.

ANS:

PTS: 1 DIF: 2 REF: 347 NAT: AACSB Analytic | HRM
TYP: F

25. ____________________ is the process of determining the value of jobs within an organization through an examination of job content.

ANS:

PTS: 1 DIF: 2 REF: 348 NAT: AACSB Analytic | HRM
TYP: F

26. ____________________ show what other organizations pay incumbents in jobs that match a sample of “key” jobs selected by the organization.

ANS:

PTS: 1 DIF: 2 REF: 348 NAT: AACSB Analytic | HRM
TYP: F

27. ____________________ is incentive pay that ties at least part of compensation to employee effort and performance.

ANS:

PTS: 1 DIF: 2 REF: 348 NAT: AACSB Analytic | HRM
TYP: F

28. A(n) ____________________ is an interview conducted with departing employees to determine why they are leaving.

ANS:

PTS: 1 DIF: 2 REF: 349 NAT: AACSB Analytic | HRM
TYP: F

SHORT ANSWER

1. List the four steps in attracting an effective workforce.

ANS:

PTS: 1 DIF: 2 REF: 333 NAT: AACSB Analytic | HRM
TYP: F

2. List the most frequently used selection devices.

ANS:

PTS: 1 DIF: 2 REF: 338-339 NAT: AACSB Analytic | HRM
TYP: F

3. What are some innovative approaches that managers can use to recruit the right people?

ANS:

PTS: 1 DIF: 2 REF: 336 NAT: AACSB Analytic | HRM
TYP: F

4. List the three most common types of employment tests that organizations may use to select employees.

ANS:

PTS: 1 DIF: 2 REF: 340 NAT: AACSB Analytic | HRM
TYP: F

ESSAY

1. What are the three primary goals of human resource management (HRM)?

ANS:

PTS: 1 DIF: 1 REF: 324 NAT: AACSB Analytic | HRM
TYP: F

2. What are the three primary ways human resource management is changing?

ANS:

PTS: 1 DIF: 2 REF: 324 NAT: AACSB Analytic | HRM
TYP: F

3. Explain the Americans with Disabilities Act.

ANS:

PTS: 1 DIF: 2 REF: 328 NAT: AACSB Analytic | HRM
TYP: F

4. Define discrimination and affirmative action.

ANS:

PTS: 1 DIF: 2 REF: 327 NAT: AACSB Analytic | HRM
TYP: F

5. Describe the concept of changing social contract by differentiating between the new and the old contract.

ANS:

PTS: 1 DIF: 2 REF: 330 NAT: AACSB Analytic | HRM
TYP: F

6. Explain the purpose of the selection process and identify four of the most frequently used selection devices.

ANS:

PTS: 1 DIF: 2 REF: 337-341 NAT: AACSB Analytic | HRM
TYP: F

7. Name and briefly describe four approaches to training and development.

ANS:

PTS: 1 DIF: 3 REF: 342-344 NAT: AACSB Analytic | HRM
TYP: F

8. Explain the appraisal process known as “360-degree feedback.”

ANS:
360-degree feedback is a process that uses multiple raters, including self-rating, as a way to increase awareness of strengths and weaknesses and guide employee development. Members of the appraisal group may include supervisors, coworkers, and customers, as well as the individual, thus providing appraisal of the employee from a variety of perspectives.

PTS: 1 DIF: 2 REF: 345 NAT: AACSB Analytic | HRM
TYP: F

9. Describe how to maintain an effective workforce.

ANS:

PTS: 1 DIF: 2 REF: 347-349 NAT: AACSB Analytic | HRM
TYP: F

Chapter 13—Managing Diversity

TRUE/FALSE

1. Today, organizations recognize that diversity is a business imperative and perhaps the single most important factor of the twenty-first century for organization performance.

ANS: PTS: 1 DIF: 2 REF: 356
NAT: AACSB Diversity | HRM TYP: F

2. According to the authors, State Farm Insurance is a leader in corporate diversity in the United States.

ANS: PTS: 1 DIF: 2 REF: 357
NAT: AACSB Diversity | HRM TYP: F

3. The genuine efforts to accept and manage diverse people in North America are a phenomenon that emerged in the 1800s.

ANS: PTS: 1 DIF: 2 REF: 357
NAT: AACSB Diversity | HRM TYP: F

4. Today’s workforce is growing older with an average age of 40.8 years in 2006 and it is expected to increase to 42.1 years in 2016.

ANS: PTS: 1 DIF: 3 REF: 359
NAT: AACSB Diversity | HRM TYP: F

5. In 1970, Joseph Searles became the first African American member of the New York Stock Exchange.

ANS: PTS: 1 DIF: 3 REF: 358
NAT: AACSB Diversity | HRM TYP: F

6. In 2010, PepsiCo appointed its first female CEO.

ANS: PTS: 1 DIF: 1 REF: 358
NAT: AACSB Diversity | HRM TYP: F

7. According to MANAGER’S SHOPTALK in Chapter 13, Americans tend to be indecisive.

ANS: PTS: 1 DIF: 2 REF: 361
NAT: AACSB Diversity | HRM TYP: F

8. According to MANAGER’S SHOPTALK in Chapter 13, Americans pay close attention to appearance.

ANS: PTS: 1 DIF: 2 REF: 361
NAT: AACSB Diversity | HRM TYP: F

9. Workforce diversity refers to hiring people from different geographic regions of the country but of same nationality.

ANS: PTS: 1 DIF: 2 REF: 362
NAT: AACSB Diversity | HRM TYP: F

10. The traditional dimension of diversity can be acquired or changed throughout one’s lifetime.

ANS: PTS: 1 DIF: 1 REF: 362
NAT: AACSB Diversity | HRM TYP: F

11. Age, race, and gender are included in the primary dimension of diversity.

ANS: PTS: 1 DIF: 1 REF: 362
NAT: AACSB Diversity | HRM TYP: F

12. Nationality and work style are included in the inclusive dimension of diversity.

ANS: PTS: 1 DIF: 1 REF: 362
NAT: AACSB Diversity | HRM TYP: F

13. Traditional dimensions of diversity such as work style, communication style, and educational or skill level are particularly relevant in the organizational setting.

ANS: PTS: 1 DIF: 2 REF: 362
NAT: AACSB Diversity | HRM TYP: F

14. Managing diversity means creating a climate in which the potential advantages of diversity for organizational or group performance are maximized while the potential disadvantages are minimized.

ANS: PTS: 1 DIF: 2 REF: 362-363
NAT: AACSB Diversity | HRM TYP: F

15. A diverse workforce is better able to anticipate and respond to changing consumer needs.

ANS: PTS: 1 DIF: 1 REF: 363
NAT: AACSB Diversity | HRM TYP: F

16. Homogeneous top management teams tend to be broadminded in their perspectives.

ANS: PTS: 1 DIF: 2 REF: 363
NAT: AACSB Diversity | HRM TYP: F

17. Unfortunately, companies that foster a diverse workforce increases turnover, absenteeism, and the risk of lawsuits.

ANS: PTS: 1 DIF: 2 REF: 364
NAT: AACSB Diversity | HRM TYP: F

18. Discrimination is the tendency to view people who are different as being deficient.

ANS: PTS: 1 DIF: 2 REF: 365
NAT: AACSB Diversity | HRM TYP: F

19. A rigid, exaggerated, irrational belief associated with a particular group of people defines prejudice.

ANS: PTS: 1 DIF: 2 REF: 365
NAT: AACSB Diversity | HRM TYP: F

20. Stereotype threat describes the psychological experience of a person who, usually engaged in a task, is aware of a stereotype about his or her identity group suggesting that he or she will not perform well on that task.

ANS: PTS: 1 DIF: 2 REF: 366
NAT: AACSB Diversity | HRM TYP: F

21. Stereotyping is based on cultural differences verified by scientific research methods.

ANS: PTS: 1 DIF: 2 REF: 365
NAT: AACSB Diversity | HRM TYP: F

22. An organization which accommodates several subcultures, including employees who would otherwise feel isolated and ignored refers to pluralism.

ANS: PTS: 1 DIF: 2 REF: 367
NAT: AACSB Diversity | HRM TYP: F

23. The belief that your group and subculture is not as good as other groups and subcultures is ethnocentrism.

ANS: PTS: 1 DIF: 1 REF: 366
NAT: AACSB Diversity | HRM TYP: F

24. A culture that accepts only one way of doing things and one set of values and beliefs, produced by ethnocentrism, is known as monoculture.

ANS: PTS: 1 DIF: 1 REF: 367
NAT: AACSB Diversity | HRM TYP: F

25. The belief that ethics are not absolute but instead need to be evaluated relative to the situation refers to ethnorelativism.

ANS: PTS: 1 DIF: 2 REF: 367
NAT: AACSB Diversity | HRM TYP: F

26. Most organizations make a conscious effort to shift from a pluralism perspective to one of monoculture.

ANS: PTS: 1 DIF: 2 REF: 367
NAT: AACSB Diversity | HRM TYP: F

27. An invisible barrier that separates women and minorities from advancement to important lateral movement within the organization defines the glass ceiling.

ANS: PTS: 1 DIF: 2 REF: 368
NAT: AACSB Diversity | HRM TYP: F

28. In 2005, according to the text, women employed full-time earned 81 cents for every dollar that men earned.

ANS: PTS: 1 DIF: 3 REF: 368
NAT: AACSB Diversity | HRM TYP: F

29. In a recent survey, 37 percent of highly qualified women report that they voluntarily left or “opted-out” of the workforce at some point in their careers.

ANS: PTS: 1 DIF: 3 REF: 370
NAT: AACSB Diversity | HRM TYP: F

30. Uncovering diversity problems, strengthening top management commitment, choosing solutions to fit a balanced strategy, and demanding results are all steps to implementing a diversity plan.

ANS: PTS: 1 DIF: 2 REF: 372
NAT: AACSB Diversity | HRM TYP: F

31. The five major steps in implementing a change for a program to develop a truly diverse workplace is to: (1) change structures and policies, (2) focus on diversity recruiting, (3) establish mentor relationships, (4) accommodate special needs, and (5) offer training and education.

ANS: PTS: 1 DIF: 3 REF: 374
NAT: AACSB Diversity | HRM TYP: F

32. A higher ranking, senior organizational member who is committed to providing upward mobility and support to a protégé’s professional career is known as a sponsor.

ANS: PTS: 1 DIF: 2 REF: 375
NAT: AACSB Diversity | HRM TYP: F

33. The mentoring relationship is an excellent way to overcome the problem of a glass ceiling.

ANS: PTS: 1 DIF: 1 REF: 375
NAT: AACSB Diversity | HRM TYP: F

34. Research indicates that women and minorities are more likely than men to develop mentoring relationships.

ANS: PTS: 1 DIF: 3 REF: 375
NAT: AACSB Diversity | HRM TYP: F

35. Diversity training is special training which can help people become aware of their own biases and stereotypes, and is used by many organizations.

ANS: PTS: 1 DIF: 1 REF: 376
NAT: AACSB Diversity | HRM TYP: F

36. Mentoring programs are not consistent with the Civil Rights Act of 1991 that requires the diversification of middle and upper management.

ANS: PTS: 1 DIF: 2 REF: 377
NAT: AACSB Diversity | HRM TYP: F

37. Sexual harassment in the workplace is a violation of Title VII of the 1964 Civil Rights Act

ANS: PTS: 1 DIF: 2 REF: 377
NAT: AACSB Diversity | HRM TYP: F

38. Solicitation with the promise of reward is the highest level of sexual harassment.

ANS: PTS: 1 DIF: 2 REF: 377
NAT: AACSB Diversity | HRM TYP: F

39. According to the U.S. Supreme Court, sexual harassment does not include harassment by the same sex.

ANS: PTS: 1 DIF: 2 REF: 377
NAT: AACSB Diversity | HRM TYP: F

40. Multicultural teams are made up of members from diverse national, racial, ethnic, and cultural backgrounds.

ANS: PTS: 1 DIF: 2 REF: 378
NAT: AACSB Diversity | HRM TYP: F

41. Today, minorities account for about two-third of the U.S. population.

ANS: PTS: 1 DIF: 2 REF: 356
NAT: AACSB Analytic | Environmental Influence TYP: F

42. Between 1980 and 2008, nearly a third of all immigrants entering the United States were estimated to be unauthorized.

ANS: PTS: 1 DIF: 2 REF: 359
NAT: AACSB Analytic | Environmental Influence TYP: F

43. The aging population phenomenon is a huge factor in the United States and Canada. On other continents, the workforce is actually becoming younger.

ANS: PTS: 1 DIF: 2 REF: 360
NAT: AACSB Analytic | Environmental Influence TYP: F

44. Because employees with different backgrounds bring different options and ideas to the table, a diverse workforce may lead to increased conflict, anxiety, and misunderstanding.

ANS: PTS: 1 DIF: 2 REF: 362
NAT: AACSB Analytic | Group Dynamics TYP: F

45. One of the consequences of diversity in the workplace is that there is a decreased quality of team problem solving.

ANS: PTS: 1 DIF: 2 REF: 363
NAT: AACSB Analytic | Group Dynamics TYP: F

46. The term prejudice refers to rigid, exaggerated, irrational beliefs associated with a particular group of people.

ANS: PTS: 1 DIF: 2 REF: 365
NAT: AACSB Analytic | Group Dynamics TYP: F

47. Stereotypes assume that all members of a group have the same characteristics.

ANS: PTS: 1 DIF: 2 REF: 366
NAT: AACSB Analytic | Group Dynamics TYP: F

48. Research shows that companies with several senior-level women underperform financially and organizationally in comparison to those without senior-level women.

ANS: PTS: 1 DIF: 2 REF: 368
NAT: AACSB Analytic | Creation of Value TYP: F

49. Many people believe that men make better managers because of their more collaborative, less hierarchical, relationship-oriented approach that is in tune with today’s global and multicultural environment.

ANS: PTS: 1 DIF: 2 REF: 370
NAT: AACSB Analytic | Creation of Value TYP: F

50. A successful diversity plan leads to a workforce that demonstrates cultural competence in the long run.

ANS: PTS: 1 DIF: 2 REF: 372
NAT: AACSB Analytic | Creation of Value TYP: F

51. A cultural audit takes place during step three of the diversity development process, whereby solutions are chosen to fit a balanced strategy.

ANS: PTS: 1 DIF: 2 REF: 373
NAT: AACSB Analytic | Creation of Value TYP: F

52. The most important component of a successful diversity strategy is management commitment, leadership, and support.

ANS: PTS: 1 DIF: 2 REF: 373
NAT: AACSB Analytic | Creation of Value TYP: F

53. According to Fortune 1000 respondents, community outreach is the most common type of diversity initiative in companies today.

ANS: PTS: 1 DIF: 2 REF: 375
NAT: AACSB Analytic | Creation of Value TYP: F

54. The first step in diversity skills training is to help people learn how to communicate and work effectively in a diverse environment.

ANS: PTS: 1 DIF: 2 REF: 377
NAT: AACSB Analytic | Group Dynamics TYP: F

55. An important characteristic of network groups is that they are created informally by employees, not the organization, and membership is voluntary.

ANS: PTS: 1 DIF: 2 REF: 379
NAT: AACSB Analytic | Group Dynamics TYP: F

MULTIPLE CHOICE

1. All of the following are changes that are reshaping our workforce EXCEPT
a. aging workforce.
b. growth in Hispanic and Asian workers.
c. women outnumbering men
d. growth in foreign-born population.
e. younger workforce.

ANS: PTS: 1 DIF: 2 REF: 359
NAT: AACSB Diversity | HRM TYP: F

2. The average U.S. worker, today, is ____ than ever.
a. more likely to be married
b. younger
c. older
d. more likely to be male
e. uneducated

ANS: PTS: 1 DIF: 2 REF: 359
NAT: AACSB Diversity | HRM TYP: F

3. Which of the following group is expected to grow the most in employment from 2008 to 2018?
a. Hispanic
b. Asian
c. African American
d. European
e. White

ANS: PTS: 1 DIF: 2 REF: 359
NAT: AACSB Diversity | HRM TYP: F

4. ____ is defined as all the ways in which people differ.
a. Multiplicity
b. Diversity
c. Seniority
d. Culture
e. Variation

ANS: PTS: 1 DIF: 2 REF: 361
NAT: AACSB Diversity | HRM TYP: F

5. According to MANAGER’S SHOPTALK in chapter 13, which of the following is not a characteristic used to help foreign managers understand Americans?
a. Americans are formal.
b. Americans value punctuality.
c. Americans believe in work.
d. Americans are independent and individualistic.
e. Americans are competitive.

ANS: PTS: 1 DIF: 2 REF: 361
NAT: AACSB Diversity | HRM TYP: F

6. Traditional model dimensions of diversity include
a. income.
b. race.
c. parental status.
d. education.
e. religious beliefs.

ANS: PTS: 1 DIF: 1 REF: 362
NAT: AACSB Diversity | HRM TYP: F

7. Inclusive dimensions of diversity include
a. income.
b. nationality.
c. pay level.
d. work style.
e. all of these.

ANS: PTS: 1 DIF: 1 REF: 362
NAT: AACSB Diversity | HRM TYP: F

8. All of the following are traditional model dimensions of diversity EXCEPT
a. age.
b. sexual orientation.
c. religious beliefs.
d. physical ability.
e. all of these are primary dimensions of diversity.

ANS: PTS: 1 DIF: 2 REF: 362
NAT: AACSB Diversity | HRM TYP: F

9. All of these are inclusive dimensions of diversity EXCEPT
a. parents.
b. lifestyle.
c. income.
d. military experience.
e. sexual orientation.

ANS: PTS: 1 DIF: 2 REF: 362
NAT: AACSB Diversity | HRM TYP: F

10. Inclusive dimensions of diversity
a. have a greater impact than do primary dimensions.
b. are inborn.
c. can change throughout one’s lifetime.
d. include such factors as gender.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 362
NAT: AACSB Diversity | HRM TYP: F

11. Which of the following is not a dividend of workplace diversity?
a. Reduced costs associated with high turnover, absenteeism, and lawsuits.
b. Increased understanding of the marketplace.
c. Better use of employee talent.
d. Increased costs associated with high turnover, absenteeism, and lawsuits.
e. Enhanced quality of team problem solving.

ANS: PTS: 1 DIF: 2 REF: 363
NAT: AACSB Diversity | HRM TYP: F

12. ____ means creating a climate in which the potential advantages of diversity for organizational or group performance are maximized while the potential disadvantages are minimized.
a. Managing diversity
b. Maxi-Min approach
c. Managing differentiation
d. Advantageous approach
e. Maximum benefit approach

ANS: PTS: 1 DIF: 2 REF: 362-363
NAT: AACSB Diversity | HRM TYP: F

13. Which of the following prohibits discrimination on the basis of race, color, religion, national origin, and sex?
a. Age Discrimination in Employment Act
b. Title VII of the Civil Rights Act of 1964
c. Equal Pay Act of 1963
d. Americans with Disabilities Act
e. Title VIII of the Civil Rights Act Amendment of 1972

ANS: PTS: 1 DIF: 2 REF: 377
NAT: AACSB Diversity | HRM TYP: F

14. ____ is a rigid, exaggerated, irrational belief associated with a particular group of people.
a. Label
b. Prejudice
c. Typecast
d. Discrimination
e. Stereotype

ANS: PTS: 1 DIF: 2 REF: 365
NAT: AACSB Diversity | HRM TYP: F

15. ____ is a psychological experience of a person who, usually engaged in a task, is aware of a stereotype about his or her identity group suggesting he or she will not perform well on that task.
a. Typecast threat
b. Discriminatory threat
c. Labeling
d. Stereotype threat
e. Classified threat

ANS: PTS: 1 DIF: 1 REF: 366
NAT: AACSB Diversity | HRM TYP: F

16. ____ reflects the belief that one’s own group is superior to other groups.
a. Ethnorelativism
b. Ethnocentrism
c. Pluralism
d. Geocentricism
e. Regiocentrism

ANS: PTS: 1 DIF: 2 REF: 366
NAT: AACSB Diversity | HRM TYP: F

17. An ethnocentric perspective leads to
a. a monoculture.
b. diversity in the workplace.
c. pluralism.
d. ethnorelativism.
e. a global perspective.

ANS: PTS: 1 DIF: 2 REF: 367
NAT: AACSB Diversity | HRM TYP: F

18. Phlex Plastic has a very strong set of corporate values. In fact, Phlex has been known to discourage the emergence of alternative values. Phlex is most likely
a. a diverse organization.
b. an organization that encourages pluralism.
c. a monoculture.
d. geocentric.
e. minority-owned organization.

ANS: PTS: 1 DIF: 2 REF: 367
NAT: AACSB Diversity | HRM TYP: F

19. ____ is the belief that groups are inherently equal.
a. Ethnorelativism
b. Ethnocentrism
c. Pluralism
d. Geocentricism
e. Monoculture

ANS: PTS: 1 DIF: 2 REF: 367
NAT: AACSB Diversity | HRM TYP: F

20. Which of the following means that an organization accommodates several subcultures?
a. Monoculturalism
b. Pluralism
c. Ethnorelativism
d. Geocentricism
e. Ethnocentrism

ANS: PTS: 1 DIF: 1 REF: 367
NAT: AACSB Diversity | HRM TYP: F

21. A culture that accepts only one way of doing things and one set of values and beliefs is referred to as a(n)
a. primary culture.
b. preferred culture.
c. dominating culture.
d. monoculture.
e. pluralism.

ANS: PTS: 1 DIF: 1 REF: 367
NAT: AACSB Diversity | HRM TYP: F

22. Most organizations ____ shift from a monoculture perspective to one of pluralism.
a. can never
b. naturally
c. must make a conscious effort to
d. can easily
e. are against a

ANS: PTS: 1 DIF: 2 REF: 367
NAT: AACSB Diversity | HRM TYP: F

23. Which of the following is an invisible barrier that separates women and minorities from top management positions?
a. The barrier to entry
b. Affirmative action
c. Equal opportunity
d. The glass ceiling
e. The glass wall

ANS: PTS: 1 DIF: 1 REF: 368
NAT: AACSB Diversity | HRM TYP: F

24. Women make up less than 16 percent of all Fortune 500 executives. This could be due to
a. barriers to entry.
b. affirmative action.
c. equal opportunity.
d. the glass wall.
e. the glass ceiling.

ANS: PTS: 1 DIF: 2 REF: 369
NAT: AACSB Diversity | HRM TYP: F

25. Trouser’s Inc. top management is exclusively made up of older white males. Trouser’s promotes from within and top management is most comfortable with individuals who are similar to them. Women and minorities at this company who wish to be promoted are likely to experience
a. cultural diversity.
b. the glass ceiling effect.
c. rapid promotion and advancement.
d. ethnorelativism.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 368
NAT: AACSB Diversity | HRM TYP: A

26. ____ serves as invisible barriers to important lateral movement within the organization.
a. Barriers to entry
b. Affirmative action
c. Equal opportunity
d. The glass wall
e. The glass ceiling

ANS: PTS: 1 DIF: 1 REF: 369
NAT: AACSB Diversity | HRM TYP: F

27. ____ implies that women’s commitment to their children limits their commitment to the company or their ability to handle the rigors of corporate management.
a. Balancing family priorities
b. Invisible minorities
c. Opt-out trend
d. Family commitment
e. Cost of diversity

ANS: PTS: 1 DIF: 2 REF: 370
NAT: AACSB Diversity | HRM TYP: F

28. Which of the following groups has the largest wage gap between genders?
a. White
b. African American
c. Hispanic
d. European
e. Middle Eastern

ANS: PTS: 1 DIF: 2 REF: 369
NAT: AACSB Diversity | HRM TYP: F

29. Pattie’s Pancakes recently held a series of focus groups to gather information on employee perceptions of women and minorities in the workplace. In particular, Pattie’s was interested in learning about the myths, values, and beliefs that currently exist in their organization. This is an example of
a. sensitivity training.
b. building a corporate culture that values diversity.
c. changing the current organizational design.
d. changing the current organizational structure.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 372
NAT: AACSB Diversity | HRM TYP: A

30. TickTock Clock Corporation is attempting to develop a truly diverse workplace. TickTock’s president assigned the human resources department the task of determining the demographics of the local area labor market. This is an attempt to change existing ____ within the organization.
a. cultures
b. structures and policies
c. developments
d. bureaucracies
e. training

ANS: PTS: 1 DIF: 3 REF: 372
NAT: AACSB Diversity | HRM TYP: A

31. The major steps involved in building a truly diverse workplace include
a. building a corporate culture that values diversity.
b. changing structures and policies so that they support diversity.
c. diversity training.
d. all of these.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 374
NAT: AACSB Diversity | HRM TYP: F

32. ____ involves exposing traditional managers to nontraditional peers to help break down stereotypical beliefs.
a. Revelation
b. Exposure
c. Publicity
d. Innovative breakdown
e. Cultural barrier breakdown

ANS: PTS: 1 DIF: 1 REF: 373
NAT: AACSB Diversity | HRM TYP: F

33. Organizations must find ways to eliminate the glass ceiling effect. One effective way to do this has been
a. through targeted recruitment.
b. through affirmative action.
c. to develop mentoring relationships.
d. top management speeches.
e. to hire only white males.

ANS: PTS: 1 DIF: 2 REF: 375
NAT: AACSB Diversity | HRM TYP: F

34. Which of the following refers to a higher ranking, senior organizational member who is committed to providing upward mobility and support to a protégé’s professional career?
a. Sponsor
b. Mentor
c. Expatriate
d. Delegate
e. Advisor

ANS: PTS: 1 DIF: 1 REF: 375
NAT: AACSB Diversity | HRM TYP: F

35. Birmingham Boardwalk, Inc. uses a(n) ____ program to provide minorities and women with direct training and inside information on the norms and expectations of the organization.
a. sponsoring
b. mentoring
c. expatriate
d. delegate
e. advisory

ANS: PTS: 1 DIF: 1 REF: 375
NAT: AACSB Diversity | HRM TYP: A

36. ____ are less likely than ____ to develop mentoring relationships.
a. Women; minorities
b. Minorities; women
c. Men; women
d. Women; men
e. Whites; minorities

ANS: PTS: 1 DIF: 2 REF: 375
NAT: AACSB Diversity | HRM TYP: F

37. ____ mentoring relationships sometimes leave both parties uncomfortable.
a. Cross-race
b. Female-male
c. Male-male
d. Female-female
e. Same race

ANS: PTS: 1 DIF: 2 REF: 376
NAT: AACSB Diversity | HRM TYP: F

38. In a family where both parents work, which of the following may be helpful to accommodate the parents’ needs?
a. Childcare
b. Flexible work schedule
c. Home-based employment
d. Maternity or paternity leaves
e. All of these

ANS: PTS: 1 DIF: 1 REF: 376
NAT: AACSB Diversity | HRM TYP: F

39. Which of the following is a basic aim of diversity awareness training?
a. Teaching people the differences between women and men
b. Helping individuals become aware of their own prejudices
c. Complying with federal employment law
d. Reinforcing stereotypes employees may hold
e. Helping individuals become aware of management’s prejudices

ANS: PTS: 1 DIF: 2 REF: 377
NAT: AACSB Diversity | HRM TYP: F

40. ____ is(are) categories of sexual harassment.
a. Inappropriate/offensive
b. Coercion with threat of punishment
c. Solicitation with promise of reward
d. Generalized
e. All of these

ANS: PTS: 1 DIF: 1 REF: 377
NAT: AACSB Diversity | HRM TYP: F

41. Which is the highest level of sexual harassment?
a. Generalized
b. Inappropriate/offensive
c. Sexual crimes
d. Solicitation with promise of reward
e. Coercion with threat of punishment

ANS: PTS: 1 DIF: 2 REF: 377
NAT: AACSB Diversity | HRM TYP: F

42. Matthew is Mandy’s supervisor. He promises to fire her if she does not engage in sexual activity with him. This type of sexual harassment would be categorized as
a. coercion with threat of punishment.
b. solicitation with promise of reward.
c. appropriate.
d. generalized.
e. positional authority.

ANS: PTS: 1 DIF: 2 REF: 377
NAT: AACSB Diversity | HRM TYP: A

43. Which of these actions did the U.S. Supreme Court take?
a. Restricted the definition of sexual harassment to exclude office romance
b. Broadened the definition of sexual harassment to include same sex harassment
c. Broadened the definition of sexual harassment to include harassment of men by female coworkers
d. Broadened the definition of sexual harassment to include same sex harassment and harassment of men by female coworkers
e. None of these

ANS: PTS: 1 DIF: 2 REF: 377
NAT: AACSB Diversity | HRM TYP: F

44. Research has shown that
a. homogeneous groups are more creative than diverse groups.
b. homogeneous groups are less satisfied than diverse groups.
c. diverse groups are more creative than homogeneous groups.
d. creativity has nothing to do with group composition.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 378
NAT: AACSB Diversity | HRM TYP: F

45. Research has shown that network groups
a. create divisions in the workplace
b. are bad experiences for minority employees
c. help retain minority employees
d. reduce creativity by being homogeneous
e. none of these

ANS: PTS: 1 DIF: 2 REF: 379
NAT: AACSB Diversity | HRM TYP: F

46. All of the following are true about employee network groups EXCEPT:
a. the groups are based on social identity
b. the groups pursue a variety of activities
c. the groups are formally created by the organization
d. the mechanism of the groups work well with multicultural teams
e. the groups help retain minority employees

ANS: PTS: 1 DIF: 2 REF: 378
NAT: AACSB Diversity | HRM TYP: F

47. Which racial or ethnic category currently represents the largest and fastest growing minority group?
a. White
b. African American
c. Asian
d. Hispanic
e. Native American

ANS: PTS: 1 DIF: 2 REF: 356
NAT: AACSB Analytic | Environmental Influence TYP: F

48. Which workforce generation category is characterized as ambitious but lacking loyalty to the organization?
a. Generation X
b. Generation Y
c. Baby boomers
d. Teeny bopper
e. Generation A

ANS: PTS: 1 DIF: 2 REF: 357
NAT: AACSB Analytic | Environmental Influence TYP: F

49. Hopetech Industries has a corporate diversity plan that limits diversity to areas that do not change throughout a person’s lifetime, such as race, gender, age, and disability. Hopetech’s diversity plan follows which model of corporate diversity?
a. Inclusive model
b. Exclusive model
c. Traditional model
d. Learning model
e. Static model

ANS: PTS: 1 DIF: 3 REF: 361
NAT: AACSB Analytic | Creation of Value TYP: A

50. Smileline Inc. has an onsite daycare facility and provides employees fulltime daycare at a very low cost. The company implemented this years ago when managers realized that childcare responsibilities were contributing to high turnover and absenteeism. This example highlights which dividend of workplace diversity?
a. Better use of employee talent
b. Increased understanding of the marketplace
c. Increased quality of team problem solving
d. Enhanced breadth of understanding in leadership positions
e. Reduced costs associated with high turnover, absenteeism, and lawsuits

ANS: PTS: 1 DIF: 3 REF: 364
NAT: AACSB Analytic | Creation of Value TYP: A

51. Paying a woman less than a man for the same work is an example of:
a. Gender discrimination
b. Ethnic discrimination
c. Stereotyping
d. Sexual harassment
e. Prejudice

ANS: PTS: 1 DIF: 2 REF: 365
NAT: AACSB Analytic | Creation of Value TYP: F

52. Stephanie is nervous about giving a presentation at the marketing firm where she works. One of her male coworkers told her, “Don’t be such a girl, attack that presentation!” Now Stephanie is so concerned about appearing tough that she can barely concentrate on the content of the presentation. Stephanie’s anxiety stems from:
a. Stereotype
b. Ethnocentrism
c. Plurality
d. Glass ceiling threat
e. The female advantage

ANS: PTS: 1 DIF: 3 REF: 366
NAT: AACSB Analytic | Individual Dynamics TYP: A

53. Josephine would like to become part of an elite manager network at her company so she can get access to general and line management experience to help her succeed within the company. However, she learns that the manager network is made up exclusively of men. This demonstrates which factor affecting women’s careers?
a. Female advantage
b. Opt-out trend
c. Glass ceiling
d. Glass wall
e. Opaque ceiling

ANS: PTS: 1 DIF: 3 REF: 369
NAT: AACSB Analytic | Individual Dynamics TYP: A

54. Riya was a highly successful manager at Optics Int’l. After ten years with the company, she decided to leave and become a fulltime mother and caregiver to her ailing father. This example demonstrates which factor affecting women’s careers?
a. Female advantage
b. Opt-out trend
c. Glass ceiling
d. Glass wall
e. Opaque ceiling

ANS: PTS: 1 DIF: 3 REF: 370
NAT: AACSB Analytic | Individual Dynamics TYP: A

55. The ability to interact effectively with people of different cultures refers to:
a. Ethnocentrism
b. Ethnorelativism
c. Pluralism
d. Stereotyping
e. Cultural competence

ANS: PTS: 1 DIF: 2 REF: 372
NAT: AACSB Analytic | Group Dynamics TYP: F

56. During the first step of the diversity development process, managers may conduct a _________ to uncover diversity problems in the organization.
a. reports audit
b. financial audit
c. cultural audit
d. diversity audit
e. special needs audit

ANS: PTS: 1 DIF: 2 REF: 373
NAT: AACSB Analytic | Creation of Value TYP: F

57. Rebecca, a human resource manager at WorldPlus Corp., regularly establishes numerical goals tied to diversity, such as tracking salaries, rates of promotion, and managerial positions for women and minorities. This involves which step for developing diversity and cultural competence?
a. Demanding results and revisiting goals
b. Maintaining momentum to change the culture
c. Choosing solutions to fit a balanced strategy
d. Uncovering diversity problems in an organization
e. Strengthening top management commitment

ANS: PTS: 1 DIF: 3 REF: 373
NAT: AACSB Analytic | Individual Dynamics TYP: A

58. Which of the following is the most common diversity initiative, according to Fortune 1000 respondents?
a. Community outreach
b. Mentor relationships
c. Accommodating special needs
d. Training and education
e. Diversity-focused recruiting

ANS: PTS: 1 DIF: 2 REF: 375
NAT: AACSB Analytic | Environmental Influence TYP: F

59. With most new employees in the late twenties or early thirties, Albertson & Sons Inc. has learned that helping new employees secure home loans has been a valuable service that pays off in the long term. This is an example of what type of diversity initiative or program?
a. Expanding recruitment efforts
b. Establishing mentor relationships
c. Accommodating special needs
d. Providing diversity skills training
e. Increasing awareness of sexual harassment

ANS: PTS: 1 DIF: 3 REF: 376
NAT: AACSB Analytic | Creation of Value TYP: A

60. Which of the following refers to special training to help people identify their own cultural boundaries, prejudices, and stereotypes and to develop the skills for managing and working in a diverse workplace?
a. Globalization training
b. Human resource training
c. Cultural training
d. Diversity training
e. Empathy training

ANS: PTS: 1 DIF: 2 REF: 376
NAT: AACSB Analytic | Creation of Value TYP: F

61. Shortly after she got landed a corporate-level job at InfoBasis, Tonya Kennel formed a women’s leadership group to help women advance within the company. Membership within the group was voluntary and open to women with a desire to advance in the company. Tonya’s group can best be described as a(n):
a. Focus group
b. Network group
c. Self-help group
d. Diversity team
e. Multicultural team

ANS: PTS: 1 DIF: 3 REF: 378
NAT: AACSB Analytic | Group Dynamics TYP: A

CASE

Scenario – Sarah’s Sharks

As the marketing director for Sarah’s Sharks, Gloria Riviera is particularly well aware of diversity within the firm’s clients in the market place. As a successful woman manager, she is also sensitive to the importance of diversity among employees at Sarah’s Sharks.

1. Gloria has recognized that valuing diversity is good for her organization for all of the following reasons EXCEPT
a. it increases understanding of the marketplace.
b. it efficiently uses employee talent.
c. it increases the quality of team problem solving.
d. it is mandated by ethical responsibility.
e. it reduces costs associated with high turnover, absenteeism, and lawsuits.

ANS:

PTS: 1 DIF: 2 REF: 363-364 NAT: AACSB Diversity | HRM
KEY: Scenario Questions TYP: A

2. Gloria can enjoy higher success through diversity by accommodating employees’ special needs, including all of the following EXCEPT
a. reassess job scheduling and child care policies for single parent employees.
b. provide training material and information packages in foreign languages for non-English-speaking employees.
c. provide paternity and maternity leave and flexible hours for dual income families.
d. provide long-term care and life benefits for elderly of disabled workers.
e. all of these are valid strategies.

ANS:

PTS: 1 DIF: 3 REF: 376 NAT: AACSB Diversity | HRM
KEY: Scenario Questions TYP: A

3. Although she loves her job, Gloria is contemplating leaving it to focus her energy on parenting her three children. This would demonstrate which factor affecting women’s careers?
a. Female advantage
b. Opt-out trend
c. Glass ceiling
d. Glass wall
e. Opaque ceiling

ANS:

PTS: 1 DIF: 3 REF: 370
NAT: AACSB Analytic | Individual Dynamics KEY: Scenario Questions
TYP: A

4. Gloria would like to form a women’s leadership group to help other women at Sarah’s Sharks advance within the company. Membership within the group will be voluntary and open to anyone. This group would best be described as a(n):
a. Focus group
b. Diversity team
c. Self-help group
d. Network group
e. Multicultural team

ANS:

PTS: 1 DIF: 3 REF: 378
NAT: AACSB Analytic | Group Dynamics KEY: Scenario Questions
TYP: A

COMPLETION

1. Education, religious beliefs, military experience, geographic location and income are all ____________________ dimensions.

ANS: i

PTS: 1 DIF: 2 REF: 362 NAT: AACSB Diversity | HRM
TYP: F

2. The belief that one’s own group or subculture is inherently superior to other groups or cultures is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 366 NAT: AACSB Diversity | HRM
TYP: F

3. A culture that accepts only one way of doing things and one set of values and beliefs is called a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 367 NAT: AACSB Diversity | HRM
TYP: F

4. ____________________ is the belief that groups and subcultures are inherently equal.

ANS:

PTS: 1 DIF: 2 REF: 367 NAT: AACSB Diversity | HRM
TYP: F

5. ____________________ means that an organization accommodates several subcultures, including employees who would otherwise feel isolated and ignored.

ANS:

PTS: 1 DIF: 2 REF: 367 NAT: AACSB Diversity | HRM
TYP: F

6. The invisible barrier that separates women and minorities from top management positions is known as the ____________________.

ANS

PTS: 1 DIF: 2 REF: 368 NAT: AACSB Diversity | HRM
TYP: F

7. ____________________ serve as invisible barriers to important lateral movement within the organization.

ANS:

PTS: 1 DIF: 2 REF: 369 NAT: AACSB Diversity | HRM
TYP: F

8. ____________________ is designed to make people aware of their own prejudices and stereotypes.

ANS:

PTS: 1 DIF: 2 REF: 376 NAT: AACSB Diversity | HRM
TYP: F

9. ____________________ are made up of members from diverse national, racial, ethnic, and cultural backgrounds.

ANS:

PTS: 1 DIF: 2 REF: 378 NAT: AACSB Diversity | HRM
TYP: F

10. ____________________ implies that women’s commitment to their children limits their commitment to the company or their ability to handle the rigors of corporate management.

ANS:

PTS: 1 DIF: 2 REF: 370 NAT: AACSB Diversity | HRM
TYP: F

11. A higher ranking, senior organizational member who is committed to providing upward mobility and support to a protégé’s professional career is a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 375 NAT: AACSB Diversity | HRM
TYP: F

12. Groups that are based on social identity, such as gender or race, and organized by employees to focus on concerns of employees from that group are called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 378 NAT: AACSB Diversity | HRM
TYP: F

SHORT ANSWER

1. List the five categories or forms of sexual harassment.

ANS:

PTS: 1 DIF: 2 REF: 377 NAT: AACSB Diversity | HRM
TYP: F

2. Name five dividends of workplace diversity.

ANS:

PTS: 1 DIF: 2 REF: 363
NAT: AACSB Analytic | Creation of Value TYP: F

3. Name at least three factors that negatively affect women’s career advancement?

ANS:

PTS: 1 DIF: 2 REF: 368
NAT: AACSB Analytic | Creation of Value TYP: F

4. What are the five steps to developing diversity and cultural competence?

ANS:

PTS: 1 DIF: 2 REF: 372
NAT: AACSB Analytic | Creation of Value TYP: F

ESSAY

1. Define workforce diversity. Identify the traditional and inclusive dimensions of diversity.

ANS:

PTS: 1 DIF: 1 REF: 362 NAT: AACSB Diversity | HRM
TYP: F

2. What is the difference between ethnocentrism and ethnorelativism?

ANS:

PTS: 1 DIF: 2 REF: 366-367 NAT: AACSB Diversity | HRM
TYP: F

3. Briefly explain the concepts of a glass wall and a glass ceiling.

ANS:

PTS: 1 DIF: 2 REF: 368-369 NAT: AACSB Diversity | HRM
TYP: F

4. What are the 5 steps in implementing a change to develop a truly diverse workplace?

ANS:

PTS: 1 DIF: 2 REF: 374 NAT: AACSB Diversity | HRM
TYP: F

5. List and describe the five forms of sexual harassment.

ANS:

PTS: 1 DIF: 3 REF: 377 NAT: AACSB Diversity | HRM
TYP: F
Chapter 14—Understanding Individual Behavior

TRUE/FALSE

1. The concepts and principles of OB are important to managers because in every organization human beings ultimately make the decisions that control how the organization will acquire and use resources.

ANS: PTS: 1 DIF: 2 REF: 388
NAT: AACSB Analytic | Individual Dynamics TYP: F

2. Organizational behavior is an interdisciplinary field dedicated to the study of how individuals and groups tend to act in organizations.

ANS: PTS: 1 DIF: 1 REF: 388
NAT: AACSB Analytic | Individual Dynamics TYP: F

3. Work behavior that goes beyond job requirements and contributes as needed to the organization’s success, refers to organizational achievement.

ANS: PTS: 1 DIF: 1 REF: 388
NAT: AACSB Analytic | Individual Dynamics TYP: F

4. Job satisfaction is work behavior that goes beyond job requirements and contributes as needed to the organization’s success.

ANS: PTS: 1 DIF: 1 REF: 388
NAT: AACSB Analytic | Individual Dynamics TYP: F

5. One important step for managers is recognizing and understanding the components of attitudes, which is important when attempting to change attitudes.

ANS: PTS: 1 DIF: 2 REF: 389
NAT: AACSB Analytic | Individual Dynamics TYP: F

6. When Paul remarks, “I love my classes this semester,” it reflects the cognitive element of attitude.

ANS: PTS: 1 DIF: 3 REF: 390
NAT: AACSB Analytic | Individual Dynamics TYP: A

7. As a general rule, changing one component of an attitude can contribute to an overall change in attitude.

ANS: PTS: 1 DIF: 2 REF: 390
NAT: AACSB Analytic | Individual Dynamics TYP: F

8. A positive attitude toward one’s job is called cognitive attitude.

ANS: PTS: 1 DIF: 1 REF: 390
NAT: AACSB Analytic | Individual Dynamics TYP: F

9. The link between satisfaction and performance, according to research, is generally small and is affected by other factors.

ANS: PTS: 1 DIF: 2 REF: 391
NAT: AACSB Analytic | Individual Dynamics TYP: F

10. Organizations don’t want to lose talented, highly skilled workers, so they try to create an atmosphere of job satisfaction.

ANS: PTS: 1 DIF: 2 REF: 391
NAT: AACSB Analytic | Individual Dynamics TYP: F

11. Loyalty to and heavy involvement in one’s organization refers to organizational commitment.

ANS: PTS: 1 DIF: 2 REF: 391
NAT: AACSB Analytic | Individual Dynamics TYP: F

12. A condition in which two attitudes or a behavior and an attitude conflict is called intra-organization conflict.

ANS: PTS: 1 DIF: 2 REF: 392
NAT: AACSB Analytic | Individual Dynamics TYP: F

13. Attribution is the cognitive process people use to make sense out of the environment by selecting, organizing, and interpreting information.

ANS: PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Environmental Influence TYP: F

14. Organizing the selected data into patterns for interpretation and response is the last step in the perception process.

ANS: PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: F

15. Advertising is an obvious application of selective perception.

ANS: PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: A

16. The process by which individuals screen and select the various stimuli that vie for their attention refers to stimulus selectivity.

ANS: PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: F

17. Recency supports the old truism that first impressions really do count.

ANS: PTS: 1 DIF: 2 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: F

18. Proximity is the tendency to group sensory data because they are alike in some way.

ANS: PTS: 1 DIF: 1 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: F

19. A halo blinds the perceiver to other attributes that should be used in generating a more complete assessment.

ANS: PTS: 1 DIF: 2 REF: 394-395
NAT: AACSB Analytic | Individual Dynamics TYP: F

20. The tendency to see one’s own personal traits in other people refers to attribution.

ANS: PTS: 1 DIF: 2 REF: 395
NAT: AACSB Analytic | Individual Dynamics TYP: F

21. From attributions viewpoint, if the behavior is in consensus, the perceiver will probably respond to similar situations in the same way.

ANS: PTS: 1 DIF: 2 REF: 397
NAT: AACSB Analytic | Individual Dynamics TYP: F

22. From attributions viewpoint, if the behavior is distinctive, the perceiver probably will make an internal attribution.

ANS: PTS: 1 DIF: 2 REF: 396
NAT: AACSB Analytic | Individual Dynamics TYP: F

23. When people give themselves too much credit for what they do well and give external forces too much blame when they fail, this refers to the self-serving bias.

ANS: PTS: 1 DIF: 1 REF: 397
NAT: AACSB Analytic | Individual Dynamics TYP: F

24. Agreeableness refers to the degree to which a person is sociable, talkative, assertive, and comfortable with interpersonal relationships.

ANS: PTS: 1 DIF: 1 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

25. Teresa is highly imaginative and an artistically sensitive individual who displays a high degree of creativity. According to the Big Five personality factors, these qualities describe her openness to experience.

ANS: PTS: 1 DIF: 2 REF: 399
NAT: AACSB Analytic | Individual Dynamics TYP: F

26. The degree to which a person is outgoing, sociable, assertive, and comfortable with interpersonal relationships is called extroversion.

ANS: PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

27. The degree to which a person is outgoing, sociable, assertive, and comfortable with interpersonal relationships is called openness to experience.

ANS: PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

28. The degree to which a person is able to get along with others by being good-natured, likable, cooperative, forgiving, understanding, and trusting is agreeableness.

ANS: PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

29. The degree to which a person is focused on a few goals, thus behaving in ways that are responsible, dependable, persistent, and achievement oriented is conscientiousness.

ANS: PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

30. The degree to which a person is calm, enthusiastic, and self-confident, rather than tense, depressed, moody, or insecure is emotional stability.

ANS: PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

31. According to research, seven in ten top executives test out to be introverts.

ANS: PTS: 1 DIF: 3 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

32. According to one recent book, the secret to success in work and life is likability.

ANS: PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

33. Social awareness is the ability to connect to others, build positive relationships, respond to the emotions of others, and influence others.

ANS: PTS: 1 DIF: 2 REF: 408
NAT: AACSB Analytic | Individual Dynamics TYP: F

34. Self-management is being aware of what you are feeling.

ANS: PTS: 1 DIF: 2 REF: 407
NAT: AACSB Analytic | Individual Dynamics TYP: F

35. People have a high external locus of control when they feel in control of their own fate.

ANS: PTS: 1 DIF: 1 REF: 401
NAT: AACSB Analytic | Individual Dynamics TYP: F

36. People with an external locus of control are harder to motivate but easier to lead.

ANS: PTS: 1 DIF: 3 REF: 401
NAT: AACSB Analytic | Individual Dynamics TYP: F

37. Authoritarianism is the belief that power and status differences should exist within the organization.

ANS: PTS: 1 DIF: 2 REF: 402
NAT: AACSB Analytic | Individual Dynamics TYP: F

38. Machiavellianism is the tendency to direct much on one’s behavior toward the acquisition of power and the manipulation of other people for purely personal gain.

ANS: PTS: 1 DIF: 1 REF: 402
NAT: AACSB Analytic | Individual Dynamics TYP: F

39. Low Machs are particularly good in jobs that require bargaining skills or that involve substantial rewards for winning.

ANS: PTS: 1 DIF: 2 REF: 402
NAT: AACSB Analytic | Individual Dynamics TYP: F

40. According to Jung, people who would prefer to work with known facts and hard data and prefer routine and order in gathering information are called intuitive-type people.

ANS: PTS: 1 DIF: 2 REF: 403
NAT: AACSB Analytic | Individual Dynamics TYP: F

41. The Sensation-Thinking style prefers dealing with theoretical or technical problems.

ANS: PTS: 1 DIF: 2 REF: 403
NAT: AACSB Analytic | Individual Dynamics TYP: F

42. Person-job fit is the extent to which a person’s ability and personality matches the requirements of a job.

ANS: PTS: 1 DIF: 1 REF: 404
NAT: AACSB Analytic | Individual Dynamics TYP: F

43. The Myers-Briggs Type Indicator is a personality test that measures a person’s preference for introversion vs. extroversion, sensation vs. intuition, thinking vs. feeling, and judging vs. perceiving.

ANS: PTS: 1 DIF: 2 REF: 404
NAT: AACSB Analytic | Individual Dynamics TYP: F

44. Experience is the gradual change in behavior or performance that occurs as the result of learning.

ANS: PTS: 1 DIF: 2 REF: 408
NAT: AACSB Analytic | Individual Dynamics TYP: F

45. A change in behavior or performance that occurs as the result of experience refers to learning.

ANS: PTS: 1 DIF: 2 REF: 408
NAT: AACSB Analytic | Individual Dynamics TYP: F

46. Concrete experience is the first stage in the learning process cycle.

ANS: PTS: 1 DIF: 1 REF: 409
NAT: AACSB Analytic | Individual Dynamics TYP: F

47. The second stage in the learning process cycle is a concrete experience.

ANS: PTS: 1 DIF: 1 REF: 409
NAT: AACSB Analytic | Individual Dynamics TYP: F

48. Researchers have identified four fundamental learning styles labeled Diverger, Assimilator, Converger, and Accommodator.

ANS: PTS: 1 DIF: 2 REF: 409
NAT: AACSB Analytic | Individual Dynamics TYP: F

49. A person with a diverger learning style type is good at generating ideas and seeing a situation from multiple perspectives.

ANS: PTS: 1 DIF: 3 REF: 410
NAT: AACSB Analytic | Individual Dynamics TYP: F

50. A person with an assimilator learning style type is good at inductive reasoning and creating theoretical models.

ANS: PTS: 1 DIF: 3 REF: 410
NAT: AACSB Analytic | Individual Dynamics TYP: F

51. A person with a converger learning style type is good at generating ideas and seeing a situation from multiple perspectives.

ANS: PTS: 1 DIF: 3 REF: 410
NAT: AACSB Analytic | Individual Dynamics TYP: F

52. A person with an accommodator learning style type is good at implementing decisions and carrying out plans.

ANS: PTS: 1 DIF: 3 REF: 410
NAT: AACSB Analytic | Individual Dynamics TYP: F

53. According to research, an individual’s personality has no affect on how they respond to stressors.

ANS: PTS: 1 DIF: 2 REF: 411
NAT: AACSB Analytic | Individual Dynamics TYP: F

54. When the level of stress is high relative to a person’s coping resources, stress can be a positive force, stimulating desirable change and achievement.

ANS: PTS: 1 DIF: 2 REF: 411
NAT: AACSB Analytic | Individual Dynamics TYP: F

55. Extreme competitiveness, impatience, aggressiveness, and devotion to work are included in Type B behavior pattern.

ANS: PTS: 1 DIF: 1 REF: 411
NAT: AACSB Analytic | Individual Dynamics TYP: F

56. Role ambiguity is defined as uncertainty about what behaviors are expected of a person in a particular role.

ANS: PTS: 1 DIF: 1 REF: 412
NAT: AACSB Analytic | Individual Dynamics TYP: F

57. Enlightened companies support healthy habits to help people manage stress and be more productive.

ANS: PTS: 1 DIF: 1 REF: 413
NAT: AACSB Analytic | Individual Dynamics TYP: F

58. Organizations that want to challenge their employees and stay competitive can easily be stress-free.

ANS: PTS: 1 DIF: 1 REF: 412
NAT: AACSB Analytic | Individual Dynamics TYP: F

59. Daily flextime is considered by many employees to be the most effective work-life practice.

ANS: PTS: 1 DIF: 2 REF: 413
NAT: AACSB Analytic | Individual Dynamics TYP: F

60. Locus of control refers to an individual’s belief that he or she can successfully accomplish a specific task or outcome.

ANS: PTS: 1 DIF: 2 REF: 387
NAT: AACSB Analytic | Individual Dynamics TYP: F

61. Self confidence refers to a general assurance in one’s own ideas, judgment, and capabilities.

ANS: PTS: 1 DIF: 2 REF: 387
NAT: AACSB Analytic | Individual Dynamics TYP: F

62. Behavioral scientists consider attitudes to have three components: cognitions, affect, and behavior.

ANS: PTS: 1 DIF: 2 REF: 389
NAT: AACSB Analytic | Individual Dynamics TYP: F

63. Organizational commitment refers to a positive attitude toward one’s job.

ANS: PTS: 1 DIF: 2 REF: 391
NAT: AACSB Analytic | Individual Dynamics TYP: F

64. Recent surveys indicate that the majority of working individuals strongly trust in their top management.

ANS: PTS: 1 DIF: 2 REF: 392
NAT: AACSB Analytic | Individual Dynamics TYP: F

65. In general, people are more likely to notice a familiar voice than a stranger’s voice.

ANS: PTS: 1 DIF: 2 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: F

66. Perceptual defense is the tendency of perceivers to protect themselves against ideas, objects, or people that are threatening.

ANS: PTS: 1 DIF: 2 REF: 395
NAT: AACSB Analytic | Individual Dynamics TYP: F

67. Attitudes are judgments about what caused a person’s behavior.

ANS: PTS: 1 DIF: 2 REF: 396
NAT: AACSB Analytic | Individual Dynamics TYP: F

68. An internal attribution says something about the situation has caused the person’s behavior.

ANS: PTS: 1 DIF: 2 REF: 396
NAT: AACSB Analytic | Individual Dynamics TYP: F

69. People with an internal locus of control are easier to motivate because they believe the rewards are the result of their behavior.

ANS: PTS: 1 DIF: 2 REF: 401
NAT: AACSB Analytic | Individual Dynamics TYP: F

70. People with a judging preference enjoy ambiguity, dislike deadlines, and may change their minds several times as they gather large amounts of data and information to make decisions.

ANS: PTS: 1 DIF: 2 REF: 403
NAT: AACSB Analytic | Individual Dynamics TYP: F

71. An emotion can be thought of as a mental state that arises spontaneously within a person based on interaction with the environment rather than through conscious effort and is often accompanied by physiological changes or sensations.

ANS: PTS: 1 DIF: 2 REF: 405
NAT: AACSB Analytic | Individual Dynamics TYP: F

72. Research finds that the emotion contagion phenomenon works for positive emotions but not for negative emotions.

ANS: PTS: 1 DIF: 2 REF: 406
NAT: AACSB Analytic | Individual Dynamics TYP: F

73. The ability to connect to others, build positive relationships, respond to the emotions of others, and influence others is referred to as relationship management.

ANS: PTS: 1 DIF: 2 REF: 408
NAT: AACSB Analytic | Individual Dynamics TYP: F

74. The first stage of the experiential learning cycle is reflecting on observations.

ANS: PTS: 1 DIF: 2 REF: 409
NAT: AACSB Analytic | Individual Dynamics TYP: F

MULTIPLE CHOICE

1. An interdisciplinary field dedicated to the study of how individuals and groups tend to act in organizations is called
a. sociology.
b. vocational counseling.
c. cultural anthropology.
d. psychology.
e. organizational behavior.

ANS: PTS: 1 DIF: 1 REF: 388
NAT: AACSB Analytic | Individual Dynamics TYP: F

2. Which of the following refers to work behavior that goes beyond job requirements and contributes as needed to the organization’s success?
a. Job satisfaction
b. Organizational citizenship
c. Cognitive dissonance
d. Job involvement
e. Organizational Commitment

ANS: PTS: 1 DIF: 1 REF: 388
NAT: AACSB Analytic | Individual Dynamics TYP: F

3. An evaluation that predisposes a person to act in a certain way is called a(n)
a. attitude.
b. authoritarianism.
c. perception.
d. projection.
e. personality.

ANS: PTS: 1 DIF: 1 REF: 389
NAT: AACSB Analytic | Individual Dynamics TYP: F

4. The ____ is the beliefs, opinions, and information a person has about the object of an attitude.
a. affective component
b. feeling component
c. cognitive component
d. behavioral component
e. dissonance aspect of attitude

ANS: PTS: 1 DIF: 2 REF: 389
NAT: AACSB Analytic | Individual Dynamics TYP: F

5. When Bonnie remarks that she loves the classes she is taking this semester, it refers to which component of attitude?
a. Knowledge
b. Behavior
c. Dissonance
d. Affect
e. Cognitions

ANS: PTS: 1 DIF: 2 REF: 389
NAT: AACSB Analytic | Individual Dynamics TYP: A

6. Kendall, a senior at Morgan University, believes that it is okay to get at “B” but more important to learn in a class than get an easy “A” without learning. Kendall’s belief reflects which component of attitude?
a. Behavior
b. Affect
c. Dissonance
d. Feeling
e. Cognitions

ANS: PTS: 1 DIF: 3 REF: 389
NAT: AACSB Analytic | Individual Dynamics TYP: A

7. ____ refers to a positive attitude toward one’s job.
a. Organizational citizenship
b. Job satisfaction
c. Cognitive dissonance
d. Organizational commitment
e. Job involvement

ANS: PTS: 1 DIF: 1 REF: 391
NAT: AACSB Analytic | Individual Dynamics TYP: F

8. People generally experience ____ when their work matches their needs and interests, when working conditions and rewards (such as pay) are satisfactory, and when the employees like their co-workers.
a. job involvement
b. extroversion
c. cognitive dissonance
d. Machiavellianism
e. job satisfaction

ANS: PTS: 1 DIF: 2 REF: 391
NAT: AACSB Analytic | Individual Dynamics TYP: F

9. Research shows that the link between ____ and ____ is small and is influenced by other factors.
a. satisfaction; performance
b. stress; work
c. stress; home
d. stress; performance
e. satisfaction; personality

ANS: PTS: 1 DIF: 2 REF: 391
NAT: AACSB Analytic | Individual Dynamics TYP: F

10. ____ refers to loyalty to the heavy involvement in the organization.
a. Organization citizenship
b. Job satisfaction
c. Dissonance
d. Organizational commitment
e. Job involvement

ANS: PTS: 1 DIF: 1 REF: 391
NAT: AACSB Analytic | Individual Dynamics TYP: F

11. ____ is defined as a positive attitude toward one’s job.
a. Occupation approval
b. Career fulfillment
c. Job satisfaction
d. Organizational happiness
e. Organizational commitment

ANS: PTS: 1 DIF: 1 REF: 391
NAT: AACSB Analytic | Individual Dynamics TYP: F

12. Roy is a top executive at a cigarette manufacturing company who believes that cigarettes are dangerous products and they kill people. This condition can be described as
a. job involvement.
b. extroversion.
c. cognitive dissonance.
d. Machiavellianism.
e. job satisfaction.

ANS: PTS: 1 DIF: 3 REF: 392
NAT: AACSB Analytic | Individual Dynamics TYP: A

13. The cognitive process people use to make sense out of the environment by selecting, organizing, and interpreting information is called
a. selective retention.
b. dissonance.
c. attitude.
d. perception.
e. personality.

ANS: PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Environmental Influence TYP: F

14. Which of the following describes the last step in the perception process?
a. Observing information
b. Screening the information
c. Selecting what to process
d. Organizing the selected data into patterns
e. Transmitting the observed information

ANS: PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: F

15. ____ is the process by which individuals screen and select the various objects and stimuli that vie for their attention.
a. Person-job fit
b. Perceptual selectivity
c. Organizational citizenry
d. Projection
e. Perceptual grouping

ANS: PTS: 1 DIF: 1 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: F

16. ____ supports the old truism that first impressions are important.
a. Contrast
b. Values and beliefs
c. Primacy
d. Personality
e. Recency

ANS: PTS: 1 DIF: 2 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: F

17. Doug wants to look his best when he goes for interviewing. He is focusing on which of these perceiver’s characteristics?
a. Contrast
b. Personality
c. Needs and motivation
d. Primacy
e. Recency

ANS: PTS: 1 DIF: 3 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: A

18. Which of the following is the tendency to assign an individual to a group or broad category and then to attribute widely held generalizations about the group to the individual?
a. Stereotyping
b. Projection
c. Figure-ground
d. The halo effect
e. Perceptual defense

ANS: PTS: 1 DIF: 1 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: F

19. An overall impression of a person or situation based on one attribute, either favorable or unfavorable, is an example of
a. projection.
b. the halo effect.
c. perceptual defense.
d. stereotyping.
e. attribution.

ANS: PTS: 1 DIF: 1 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: F

20. Josh evaluates Kandi’s performance and gives her an “outstanding” based on his knowledge that she came to work everyday earlier than anyone else and therefore she is extremely hardworking. Josh is making which of these errors in perceptual judgment?
a. Perceptual defense
b. Projection
c. Stereotyping
d. The halo effect
e. Figure-ground

ANS: PTS: 1 DIF: 2 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: A

21. Which of the following refers to the tendency to see one’s own personal traits in other people?
a. Perceptual defense
b. Projection
c. Stereotyping
d. The halo effect
e. Figure-ground

ANS: PTS: 1 DIF: 1 REF: 395
NAT: AACSB Analytic | Individual Dynamics TYP: F

22. ____ describes a person who has observed others handle situations in the same way he would.
a. Distinctiveness
b. Consensus
c. Consistency
d. Conscientiousness
e. Agreeableness

ANS: PTS: 1 DIF: 1 REF: 397
NAT: AACSB Analytic | Individual Dynamics TYP: F

23. The tendency to underestimate the influence of external factors on another’s behavior and to overestimate the influence of internal factors is called
a. perceptual distortion.
b. closure activity.
c. the fundamental attribution error.
d. stereotyping.
e. perceptual grouping.

ANS: PTS: 1 DIF: 1 REF: 397
NAT: AACSB Analytic | Individual Dynamics TYP: F

24. The tendency to overestimate the contribution of internal factors to one’s successes and the contribution of external factors to one’s failures is a result of
a. self-serving bias.
b. openness to experience.
c. over stability.
d. emotional plateau.
e. Machiavellianism.

ANS: PTS: 1 DIF: 1 REF: 397
NAT: AACSB Analytic | Individual Dynamics TYP: F

25. ____ refers to the set of characteristics that underlie a relatively stable pattern of behavior in response to ideas, objects, or people in the environment.
a. Dissonance
b. Personality
c. Halo effect
d. Attitude
e. Perception

ANS: PTS: 1 DIF: 1 REF: 397
NAT: AACSB Analytic | Individual Dynamics TYP: F

26. The Big Five personality factors includes all of these EXCEPT
a. extroversion.
b. conscientiousness.
c. emotional stability.
d. locus of control.
e. agreeableness.

ANS: PTS: 1 DIF: 1 REF: 400
NAT: AACSB Analytic | Individual Dynamics TYP: F

27. Bernice is a talkative, assertive, and sociable individual who is very comfortable with interpersonal relationships. This describes which quality of Bernice?
a. Machiavellianism
b. Conscientiousness
c. Agreeableness
d. Emotional stability
e. Extroversion

ANS: PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: A

28. Jay is a trusting and forgiving individual who gets along with others because of being good-natured and cooperative. This describes which of the Big Five personality factors?
a. Agreeableness
b. Conscientiousness
c. Emotional stability
d. Openness to experience
e. Extroversion

ANS: PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: A

29. Which of the following refers to the degree to which a person is focused on a few goals, thus behaving in ways that are responsible, dependable, persistent, and achievement oriented?
a. Agreeableness
b. Conscientiousness
c. Emotional stability
d. Openness to experience
e. Extroversion

ANS: PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

30. If Ben is tense, nervous, depressed and insecure, he would tend to be rated as low on which of these factors?
a. Agreeableness
b. Conscientiousness
c. Emotional stability
d. Openness to experience
e. Extroversion

ANS: PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: A

31. Canyon River, Inc. is looking for an individual who has a broad range of interests and is imaginative, creative, artistically sensitive, and willing to consider new ideas. Which of these factors are they emphasizing in their search?
a. Agreeableness
b. Conscientiousness
c. Emotional stability
d. Openness to experience
e. Extroversion

ANS: PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: A

32. Traits of ____ seem to be particularly important in today’s collaborative organizations.
a. likability
b. agreeableness
c. friendliness
d. openness
e. sociability

ANS: PTS: 1 DIF: 1 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

33. Managing emotion is a basic component of emotional intelligence. Which of the following best describes managing emotions?
a. It is the basis for all the other components; being aware of what you are feeling.
b. It is the ability to balance one’s moods so that worry, anxiety, fear, or anger do not cloud thinking.
c. It is the ability to be hopeful and to persist in the face of obstacles.
d. It is the ability to be able to put yourself in someone else’s shoes.
e. It is the ability to connect to others and build positive relationships.

ANS: PTS: 1 DIF: 3 REF: 407
NAT: AACSB Analytic | Individual Dynamics TYP: F

34. A high degree of ____ means you can accurately assess your own strengths and limitations and have a healthy sense of self-confidence.
a. self-management
b. social cohesiveness
c. social awareness
d. relationship management
e. self-awareness

ANS: PTS: 1 DIF: 2 REF: 407
NAT: AACSB Analytic | Individual Dynamics TYP: F

35. Which of the following refers to the tendency to place the primary responsibility for one’s success or failure either within oneself or on outside forces?
a. Machiavellianism
b. Emotional stability
c. Locus of control
d. Authoritarianism
e. Extroversion

ANS: PTS: 1 DIF: 1 REF: 400
NAT: AACSB Analytic | Individual Dynamics TYP: F

36. Individuals who believe that they control their own destiny are described as having a
a. high external locus of control.
b. high Mach personality.
c. low introversion characteristic.
d. high internal locus of control.
e. low Mach personality.

ANS: PTS: 1 DIF: 2 REF: 401
NAT: AACSB Analytic | Individual Dynamics TYP: F

37. Jason has been unemployed for three months. When his wife asked him why he was not looking for a job, Jason responded, “If I am lucky, I will get my old job back.” Jason would be considered as having a(n)
a. external locus of control.
b. high conscientiousness.
c. sensation and intuition type personality.
d. internal locus of control.
e. high Mach attitude.

ANS: PTS: 1 DIF: 3 REF: 401
NAT: AACSB Analytic | Individual Dynamics TYP: A

38. People with an external locus of control are
a. more achievement oriented.
b. better able to handle complex information and problem solving.
c. more independent.
d. easier to motivate.
e. easier to lead.

ANS: PTS: 1 DIF: 3 REF: 401
NAT: AACSB Analytic | Individual Dynamics TYP: F

39. Which of the following terms is the belief that power and status differences should exist within the organization?
a. Extroversion
b. Machiavellianism
c. Authoritarianism
d. Perceptual distortion
e. Locus of control

ANS: PTS: 1 DIF: 1 REF: 402
NAT: AACSB Analytic | Individual Dynamics TYP: F

40. Individuals high on authoritarianism have problems with
a. power and toughness.
b. use of subjective feelings.
c. sticking to conventional values.
d. obeying recognized authority above them.
e. critically judging others.

ANS: PTS: 1 DIF: 2 REF: 402
NAT: AACSB Analytic | Individual Dynamics TYP: F

41. Which of the following is defined as the tendency to direct much of one’s behavior toward the acquisition of power and the manipulation of others for personal gain?
a. Authoritarianism
b. External locus of control
c. Introversion characteristic
d. Machiavellianism
e. Organizational citizenship

ANS: PTS: 1 DIF: 1 REF: 402
NAT: AACSB Analytic | Individual Dynamics TYP: F

42. Research shows that ____ are predisposed to being pragmatic, capable of lying to achieve personal goals, more likely to win in win-lose situations, and more likely to persuade than be persuaded.
a. high introverted individuals
b. high authoritarians
c. high Machs
d. low extroverted individuals
e. low Machs

ANS: PTS: 1 DIF: 2 REF: 402
NAT: AACSB Analytic | Individual Dynamics TYP: F

43. ____ type people, according to Jung, would rather work with known facts and hard data and prefer routine and order in gathering information.
a. Feeling
b. Gut-feel
c. Intuitive
d. Sensation
e. Affective

ANS: PTS: 1 DIF: 1 REF: 403
NAT: AACSB Analytic | Individual Dynamics TYP: F

44. Which of these styles, according to Jung, avoids specifics, decentralizes decision-making and develops few rules and regulations?
a. Intuitive-feeling
b. Sensation-thinking
c. Intuitive-thinking
d. Sensation-feeling
e. None of these.

ANS: PTS: 1 DIF: 2 REF: 403
NAT: AACSB Analytic | Individual Dynamics TYP: F

45. Which of these styles would likely be appropriate for a counseling job?
a. Intuitive-feeling
b. Sensation-thinking
c. Intuitive-thinking
d. Sensation-feeling
e. None of these.

ANS: PTS: 1 DIF: 3 REF: 403
NAT: AACSB Analytic | Individual Dynamics TYP: F

46. The extent to which a person’s ability and personality match the requirements of a job is called:
a. person-environment fit
b. person-requirement fit
c. person-job fit
d. employee-organization fit
e. employee-environment fit

ANS: PTS: 1 DIF: 2 REF: 404
NAT: AACSB Analytic | Environmental Influence TYP: F

47. A widely used personality test that measures how people differ on all four of Jung’s sets of paired opposites is the ____.
a. Keirsey personality test
b. Myers-Briggs Type Indicator
c. Eysenck Personality Test
d. Enneagram Personality Type Detector
e. Oxford Capacity Analysis

ANS: PTS: 1 DIF: 2 REF: 403
NAT: AACSB Analytic | Individual Dynamics TYP: F

48. The extent to which a person will fit into the overall organization is called:
a. person-environment fit
b. person-requirement fit
c. person-job fit
d. employee-organization fit
e. employee-environment fit

ANS: PTS: 1 DIF: 2 REF: 405
NAT: AACSB Analytic | Environmental Influence TYP: F

49. Which of the following refers to a change in behavior or performance that occurs as the result of experience?
a. Stress
b. Conceptualization
c. Observation
d. Learning
e. Distortion

ANS: PTS: 1 DIF: 2 REF: 408
NAT: AACSB Analytic | Individual Dynamics TYP: F

50. The four stages of the learning process include all of the following EXCEPT:
a. concrete experience
b. reflective observation
c. abstract observation
d. abstract conceptualization
e. active experimentation

ANS: PTS: 1 DIF: 2 REF: 409
NAT: AACSB Analytic | Individual Dynamics TYP: F

51. All of the following are fundamental learning styles labeled by researchers EXCEPT:
a. Assimilator
b. Disseminator
c. Diverger
d. Accommodator
e. Converger

ANS: PTS: 1 DIF: 2 REF: 409
NAT: AACSB Analytic | Individual Dynamics TYP: F

52. Which of the following describes a person with the learning characteristics of being good at generating ideas and seeing a situation from multiple perspectives?
a. Diverger
b. Assimilator
c. Converger
d. Accommodator
e. None of these

ANS: PTS: 1 DIF: 2 REF: 410
NAT: AACSB Analytic | Individual Dynamics TYP: F

53. A person with the learning characteristics of being good at inductive reasoning and creating theoretical models is a(n):
a. diverger
b. assimilator
c. converger
d. accommodator
e. none of these

ANS: PTS: 1 DIF: 2 REF: 410
NAT: AACSB Analytic | Individual Dynamics TYP: F

54. A person with the learning characteristics of being good at decisiveness and practical application of ideas is a(n):
a. diverger
b. assimilator
c. converger
d. accommodator
e. none of these

ANS: PTS: 1 DIF: 2 REF: 410
NAT: AACSB Analytic | Individual Dynamics TYP: F

55. Which of the following describes a person with the learning characteristics of being good at implementing decisions and carrying out plans?
a. Diverger
b. Assimilator
c. Converger
d. Accommodator
e. None of these

ANS: PTS: 1 DIF: 2 REF: 410
NAT: AACSB Analytic | Individual Dynamics TYP: F

56. Stress can be caused by
a. task demands.
b. role demands.
c. interpersonal demands.
d. physical demands.
e. all of these.

ANS: PTS: 1 DIF: 1 REF: 412
NAT: AACSB Analytic | Individual Dynamics TYP: F

57. Type A behavior pattern is characterized by all of these EXCEPT
a. impatience.
b. devotion to work.
c. aggressiveness.
d. relaxed lifestyle.
e. extreme competitiveness.

ANS: PTS: 1 DIF: 1 REF: 411
NAT: AACSB Analytic | Individual Dynamics TYP: F

58. Which of the following is the uncertainty about what behaviors are expected of a person in a particular role?
a. Role conflict
b. Task overload
c. Nonprogrammed decisions
d. Role ambiguity
e. Task underload

ANS: PTS: 1 DIF: 1 REF: 412
NAT: AACSB Analytic | Individual Dynamics TYP: F

59. All of the following are things bad bosses do to create stress for their subordinates EXCEPT:
a. Bully and harass people to keep them on their toes.
b. Create perpetual doubt about how well employees are performing.
c. Fail to give people credit for their contributions and achievements.
d. Impose unreasonable demands and overwhelming workloads.
e. Tell people exactly what is expected of them.

ANS: PTS: 1 DIF: 2 REF: 413
NAT: AACSB Analytic | Individual Dynamics TYP: F

60. ____ is considered by many employees to be the most effective work-life practice.
a. Daily flextime
b. Offsite childcare
c. Work from home network
d. Telecommunication
e. Reduced work schedule

ANS: PTS: 1 DIF: 2 REF: 413
NAT: AACSB Analytic | Individual Dynamics TYP: F

61. An individual’s strong belief that he or she can successfully accomplish a specific task or outcome is referred to as:
a. Locus of control
b. Self-confidence
c. Self-efficacy
d. Perceptual selectivity
e. Cognitive dissonance

ANS: PTS: 1 DIF: 2 REF: 387
NAT: AACSB Analytic | Individual Dynamics TYP: F

62. The general assurance in one’s own ideas, judgment, and capabilities is referred to as:
a. Locus of control
b. Self-confidence
c. Self-efficacy
d. Perceptual selectivity
e. Cognitive dissonance

ANS: PTS: 1 DIF: 2 REF: 387
NAT: AACSB Analytic | Individual Dynamics TYP: F

63. Studies have found that the characteristic most common to top executives is:
a. A Type A personality
b. A workaholic mentality
c. An unsatisfied worker
d. An optimistic attitude
e. An introverted personality

ANS: PTS: 1 DIF: 2 REF: 389
NAT: AACSB Analytic | Individual Dynamics TYP: F

64. William wakes up on Monday thinking, “I am going to get to work early this morning, get my tasks done, and help my colleagues with their tasks.” This is an example of which attitude component?
a. Cognition
b. Affect
c. Feeling
d. Thought
e. Behavior

ANS: PTS: 1 DIF: 3 REF: 389
NAT: AACSB Analytic | Individual Dynamics TYP: A

65. All of the following are tactics for promoting stronger organizational commitment EXCEPT:
a. Maintaining a secretive culture
b. Being honest and trustworthy in business dealings
c. Giving employees a say in business decisions
d. Treating employees fairly
e. Offering employees rewards that they value

ANS: PTS: 1 DIF: 2 REF: 392
NAT: AACSB Analytic | Individual Dynamics TYP: F

66. When Sylvia receives her annual performance evaluation, she makes note of all of the positive statements that her supervisor has made, but subconsciously overlooks a handful of negative comments that are meant to help her improve in the future. This is a classic example of:
a. The halo effect
b. Stereotyping
c. Low job satisfaction
d. Perceptual selectivity
e. Cognitive dissonance

ANS: PTS: 1 DIF: 3 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: A

67. __________ are errors in perceptual judgment that arise from inaccuracies in any part of the perceptual process.
a. Attributions
b. Projected expressions
c. Perceptual distortions
d. Secondary perceptions
e. Personality defenses

ANS: PTS: 1 DIF: 2 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: F

68. Ralph is a tireless workaholic who spends most of his time thinking about work, even when not at work. He considers this to be the norm at his place of employment, and believes that his three subordinates are equally committed to their jobs. This is an example of which perceptual distortion?
a. Stereotyping
b. Halo effect
c. Perceptual defense
d. Personality expression
e. Projection

ANS: PTS: 1 DIF: 3 REF: 395
NAT: AACSB Analytic | Individual Dynamics TYP: A

69. Frank regretfully missed an important deadline at work. His boss, George, thinks to himself, “Frank missed that deadline because he is lazy; I really need to crack down on him more.” This is an example of what kind of attribution?
a. External attribution
b. Internal attribution
c. Horizontal attribution
d. Vertical attribution
e. Skewed attribution

ANS: PTS: 1 DIF: 3 REF: 395
NAT: AACSB Analytic | Individual Dynamics TYP: A

70. Rachel is described by her colleagues as pragmatic, super-competitive, and more likely to persuade than be persuaded. She fits which personality category most closely?
a. High Mach
b. Low Mach
c. High Feeling
d. Low Feeling
e. Moderate Thinking

ANS: PTS: 1 DIF: 3 REF: 402
NAT: AACSB Analytic | Individual Dynamics TYP: A

71. Maliah bases her judgments on impersonal analysis. To resolve problems at work, she uses reason and logic rather than personal values or emotional aspects of the situation. In gathering information, Maliah prefers routine and order. Based on this information, Maliah ranks highly in which Myers-Briggs category?
a. Judging-Perceiving
b. Intuitive-Thinking
c. Sensation-Thinking
d. Sensation-Feeling
e. Intuitive-Feeling

ANS: PTS: 1 DIF: 3 REF: 403
NAT: AACSB Analytic | Individual Dynamics TYP: A

72. Henry, an easy-going and laid back individual, just accepted an attorney position at an elite law firm that is known for its formal and authoritarian culture. What is the fit mismatch that Henry should be concerned about?
a. Person-job fit
b. Task-role fit
c. Job-environment fit
d. Person-environment fit
e. Role-person fit

ANS: PTS: 1 DIF: 3 REF: 405
NAT: AACSB Analytic | Individual Dynamics TYP: A

73. When managers who express positive emotions such as happiness, enthusiasm, and appreciation trigger these same positive emotions in employees, ___________ is happening.
a. Perceptual selectivity
b. Cognitive dissonance
c. Contagious feeling
d. Self-efficacy
e. Emotion contagion

ANS: PTS: 1 DIF: 2 REF: 406
NAT: AACSB Analytic | Individual Dynamics TYP: F

74. Seeking positions of power and responsibility, Chandra has rapidly moved up the ranks within her organization. Colleagues describe her as someone with a tremendous amount of energy, and a powerful force for leadership within the organization. Based on this description, Chandra has what type of personality?
a. Type A
b. Type B
c. Type C
d. Type X
e. Type Y

ANS: PTS: 1 DIF: 3 REF: 411
NAT: AACSB Analytic | Individual Dynamics TYP: A

75. ________ conflict occurs when an individual perceives incompatible demands from others.
a. Attitude
b. Role
c. Personality
d. Perception
e. Ability

ANS: PTS: 1 DIF: 2 REF: 412
NAT: AACSB Analytic | Individual Dynamics TYP: F

CASE

Scenario – Layla Fox

Layla Fox is a creative, imaginative, artistically sensitive individual who loves to take on new opportunities. She is a successful manager who believes that she makes her own destiny through hard work and listening to people. Her personal problem solving style is intuitive-thinking.

1. Being a hard worker and a perfectionist, Layla believes that all her employees should be hard working and perfectionists as well. This appears to be an error in which of these perceptual judgements?
a. Stereotyping
b. The halo effect
c. Dissonance
d. Perceptual defense
e. Projection

ANS:

PTS: 1 DIF: 2 REF: 395
NAT: AACSB Analytic | Individual Dynamics KEY: Scenario Questions
TYP: A

2. Layla can best be described using which of these Big Five personality factors?
a. Agreeableness
b. Openness to experience
c. Conscientiousness
d. Extroversion
e. Emotional stability

ANS:

PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics KEY: Scenario Questions
TYP: A

3. Layla appears to have a
a. high external locus of control.
b. high Mach personality.
c. high authoritarian style.
d. high internal locus of control.
e. low extroversion characteristic.

ANS:

PTS: 1 DIF: 2 REF: 401
NAT: AACSB Analytic | Individual Dynamics KEY: Scenario Questions
TYP: A

4. Which of these occupations would Layla most likely succeed in based on her problem solving style?
a. Counseling
b. Advertising
c. Teaching business
d. Engineering
e. Politics

ANS:

PTS: 1 DIF: 2 REF: 403
NAT: AACSB Analytic | Individual Dynamics KEY: Scenario Questions
TYP: A

COMPLETION

1. ____________________ is an interdisciplinary field dedicated to the study of human attitudes, behavior, and performance in organizations.

ANS:

PTS: 1 DIF: 2 REF: 388
NAT: AACSB Analytic | Individual Dynamics TYP: F

2. Work behavior that goes beyond job requirements and contributes as needed to the organization’s success is referred to as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 388
NAT: AACSB Analytic | Individual Dynamics TYP: F

3. A(n) ____________________ is an evaluation that predisposes a person to act in a certain way.

ANS:

PTS: 1 DIF: 2 REF: 389
NAT: AACSB Analytic | Individual Dynamics TYP: F

4. The ____________________ component of an attitude includes the beliefs, opinions, and information the person has about the object of the attitude, such as knowledge of what a job entails and opinions about personal abilities.

ANS:

PTS: 1 DIF: 2 REF: 389
NAT: AACSB Analytic | Individual Dynamics TYP: F

5. A positive attitude toward one’s job is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 391
NAT: AACSB Analytic | Individual Dynamics TYP: F

6. Loyalty to and heavy involvement in one’s organization is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 391
NAT: AACSB Analytic | Individual Dynamics TYP: F

7. A condition in which two attitudes or a behavior and an attitude conflict is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 392
NAT: AACSB Analytic | Individual Dynamics TYP: F

8. The process people use to make sense of the environment by selecting, organizing, and interpreting information from the environment is referred to as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: F

9. ____________________ is the cognitive process people use to make sense out of the environment by selecting, organizing, and interpreting information.

ANS:

PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: F

10. The ____________________ process occurs when individuals screen and select the various stimuli that vie for their attention.

ANS:

PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: F

11. ____________________ is the process by which individuals screen and select the various objects and stimuli that vie for their attention.

ANS:

PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: F

12. Errors in perceptual judgment that arise from inaccuracies in any part of the perception process are called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: F

13. ____________________ is the tendency to assign an individual to a group or broad category and then attribute generalizations about the group to the individual.

ANS:

PTS: 1 DIF: 2 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: F

14. An individual’s ____________________ is the set of characteristics that underlie a relatively stable pattern of behavior in response to ideas, objects, or people in the environment.

ANS:

PTS: 1 DIF: 2 REF: 397
NAT: AACSB Analytic | Individual Dynamics TYP: F

15. The ____________________ occurs when the perceiver develops an overall impression of a person or situation based on one attribute, either favorable or unfavorable.

ANS:

PTS: 1 DIF: 2 REF: 394
NAT: AACSB Analytic | Individual Dynamics TYP: F

16. ____________________ is the tendency of perceivers to see their own personal traits in other people.

ANS:

PTS: 1 DIF: 2 REF: 395
NAT: AACSB Analytic | Individual Dynamics TYP: F

17. ____________________ is the tendency of perceivers to protect themselves against ideas, objects, or people that are threatening.

ANS:

PTS: 1 DIF: 2 REF: 395
NAT: AACSB Analytic | Individual Dynamics TYP: F

18. ____________________ are judgments about what caused a person’s behavior-something about the person or something about the situation.

ANS:

PTS: 1 DIF: 2 REF: 396
NAT: AACSB Analytic | Individual Dynamics TYP: F

19. The tendency to underestimate the influence of external factors on another’s behavior and to overestimate the influence of internal factors is called the ____________________.

ANS:

PTS: 1 DIF: 2 REF: 397
NAT: AACSB Analytic | Individual Dynamics TYP: F

20. ____________________ is the degree to which a person is able to get along with others by being good-natured, cooperative, forgiving, understanding, and trusting.

ANS:

PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

21. The tendency to place the primary responsibility for one’s success or failure either within oneself (internally) or on outside forces (externally) is called the ____________________.

ANS:

PTS: 1 DIF: 2 REF: 400
NAT: AACSB Analytic | Individual Dynamics TYP: F

22. ____________________ is the belief that power and status differences should exist within the organization.

ANS:

PTS: 1 DIF: 2 REF: 402
NAT: AACSB Analytic | Individual Dynamics TYP: F

23. ____________________ is the tendency to direct much of one’s behavior toward the acquisition of power and the manipulation of others for personal gain.

ANS:

PTS: 1 DIF: 2 REF: 402
NAT: AACSB Analytic | Individual Dynamics TYP: F

24. The ____________________ refers to the extent to which a person’s ability and personality match the requirement of a job.

ANS:

PTS: 1 DIF: 2 REF: 404
NAT: AACSB Analytic | Individual Dynamics TYP: F

25. ____________________ is a change in behavior or performance that occurs as the result of experience.

ANS:

PTS: 1 DIF: 2 REF: 408
NAT: AACSB Analytic | Individual Dynamics TYP: F

26. ____________________ is a behavior pattern characterized by extreme competitiveness, impatience, aggressiveness, and devotion to work.

ANS:

PTS: 1 DIF: 2 REF: 411
NAT: AACSB Analytic | Individual Dynamics TYP: F

27. A physiological and emotional response to stimuli that place physical or psychological demands on an individual is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 410
NAT: AACSB Analytic | Individual Dynamics TYP: F

28. Uncertainty about what behaviors are expected of a person in a particular role is referred to as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 412
NAT: AACSB Analytic | Individual Dynamics TYP: F

29. ____________________ are stressors arising from the tasks required of a person holding a particular job.

ANS:

PTS: 1 DIF: 2 REF: 412
NAT: AACSB Analytic | Individual Dynamics TYP: F

30. ____________________ are stressors associated with relationships in the organization.

ANS:

PTS: 1 DIF: 2 REF: 412
NAT: AACSB Analytic | Individual Dynamics TYP: F

31. ____________________ means giving employees the freedom to vary their hours as needed.

ANS:

PTS: 1 DIF: 2 REF: 413
NAT: AACSB Analytic | Individual Dynamics TYP: F

ESSAY

1. Describe the different components of attitude using an example.

ANS:

PTS: 1 DIF: 2 REF: 389
NAT: AACSB Analytic | Individual Dynamics TYP: F

2. Briefly describe the perception process.

ANS:

PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: F

3. Define perceptual selectivity. Briefly explain the characteristics of the stimuli and the perceiver that affect this process.

ANS:

PTS: 1 DIF: 2 REF: 393
NAT: AACSB Analytic | Individual Dynamics TYP: F

4. Describe any three common perceptual distortions that managers make. Give an example of each.

ANS:

PTS: 1 DIF: 2 REF: 394-395
NAT: AACSB Analytic | Individual Dynamics TYP: F

5. Describe the three factors that influence whether an attribution will be external or internal.

ANS:

PTS: 1 DIF: 2 REF: 396
NAT: AACSB Analytic | Individual Dynamics TYP: F

6. Explain the Big Five personality factors. Are these applicable in an international context?

ANS:

PTS: 1 DIF: 2 REF: 398
NAT: AACSB Analytic | Individual Dynamics TYP: F

7. What are the four components of emotional intelligence? Explain.

ANS:

PTS: 1 DIF: 3 REF: 407-408
NAT: AACSB Analytic | Individual Dynamics TYP: F

8. Describe Carl Jung’s four functions related to gathering and evaluating information for problem solving and decision making. Which problem solving style would be appropriate for an Accounting profession? Why?

ANS:

PTS: 1 DIF: 3 REF: 403
NAT: AACSB Analytic | Individual Dynamics TYP: F

9. Describe the learning process and the four-stage cycle of learning.

ANS:

PTS: 1 DIF: 2 REF: 409
NAT: AACSB Analytic | Individual Dynamics TYP: F

10. What are some of the ways enlightened companies are helping employees cope with stress.

ANS:

PTS: 1 DIF: 2 REF: 412
NAT: AACSB Analytic | Individual Dynamics TYP: F

Chapter 15—Leadership

TRUE/FALSE

1. Leadership occurs among people, involves the use of influence, and is used to attain goals.

ANS: PTS: 1 DIF: 1 REF: 422
NAT: AACSB Analytic | Leadership Principles TYP: F

2. Leadership is reciprocal.

ANS: PTS: 1 DIF: 1 REF: 422
NAT: AACSB Analytic | Leadership Principles TYP: F

3. Influence means that the relationship among people is passive.

ANS: PTS: 1 DIF: 2 REF: 422
NAT: AACSB Analytic | Leadership Principles TYP: F

4. The highest level in a hierarchy of manager capabilities refers to level 5 leadership.

ANS: PTS: 1 DIF: 2 REF: 423
NAT: AACSB Analytic | Leadership Principles TYP: F

5. In a corporate world, arrogance means being unpretentious and modest rather than arrogant and prideful.

ANS: PTS: 1 DIF: 2 REF: 423
NAT: AACSB Analytic | Leadership Principles TYP: F

6. Level 5 leaders are ambitious for their organizations, not for themselves.

ANS: PTS: 1 DIF: 2 REF: 424
NAT: AACSB Analytic | Leadership Principles TYP: F

7. Level 5 leaders are ambitious for themselves and their organizations.

ANS: PTS: 1 DIF: 2 REF: 424
NAT: AACSB Analytic | Leadership Principles TYP: F

8. Interactive leadership means that the leader favors a consensual and collaborative process, and influence derives from relationships rather than position power and formal authority.

ANS: PTS: 1 DIF: 2 REF: 425
NAT: AACSB Analytic | Leadership Principles TYP: F

9. Interactive leadership has been found to be more common among female leaders.

ANS: PTS: 1 DIF: 2 REF: 426
NAT: AACSB Analytic | Leadership Principles TYP: F

10. Values associated with interactive leadership include personal confidence, exclusion, and independence.

ANS: PTS: 1 DIF: 2 REF: 427
NAT: AACSB Analytic | Leadership Principles TYP: F

11. Within a single individual, management and leadership reflect the same sets of qualities and skills that frequently overlap.

ANS: PTS: 1 DIF: 2 REF: 428
NAT: AACSB Analytic | Leadership Principles TYP: F

12. Good leadership is needed to help the organization meet current commitments, while good management is needed to move the organization in the future.

ANS: PTS: 1 DIF: 2 REF: 428
NAT: AACSB Analytic | Leadership Principles TYP: F

13. Three distinguishing personal characteristics associated with successful leaders are intelligence, honesty, and self-confidence.

ANS: PTS: 1 DIF: 2 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: F

14. Self-confidence, honesty and integrity, enthusiasm, and the desire to lead, are all intelligence and ability components of personal characteristics of leaders.

ANS: PTS: 1 DIF: 3 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: F

15. Ohio State University researchers identified two major behaviors called consideration and initiating structure.

ANS: PTS: 1 DIF: 1 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

16. Consideration is the extent to which the leader is task oriented and directs subordinate work activities toward goal attainment.

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

17. The extent to which the leader is mindful of subordinates, respects their ideas and feelings, and establishes mutual trust refers to initiating structure.

ANS: PTS: 1 DIF: 1 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

18. Job-centered leaders are those leaders that establish high performance goals and display supportive behavior toward subordinates.

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

19. The leadership grid suggests a two-dimensional leadership theory that measures a leader’s concern for people and concern for production.

ANS: PTS: 1 DIF: 3 REF: 431
NAT: AACSB Analytic | Leadership Principles TYP: F

20. The country club management style (1,9) stresses high service and concern for guests or customers, sometimes to the detriment of employees of the firm.

ANS: PTS: 1 DIF: 3 REF: 431
NAT: AACSB Analytic | Leadership Principles TYP: F

21. Hersey and Blanchard’s situational theory focuses a great deal of attention on the characteristics of employees in determining appropriate leadership behavior.

ANS: PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: F

22. The contingency approach links the leader’s behavioral style with the task readiness of subordinates.

ANS: PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: F

23. Situational theory model focuses a great deal on the characteristics of followers, not those of the situation.

ANS: PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: F

24. The telling style, according to Hersey and Blanchard, is appropriate for followers with moderate readiness.

ANS: PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: F

25. Matching the leader’s style with the situation by changing factors in the situation to achieve the best match is the basic idea with Fiedler’s contingency theory.

ANS: PTS: 1 DIF: 2 REF: 433-434
NAT: AACSB Analytic | Leadership Principles TYP: F

26. Leader-member relations, task structure and task consideration, according to Fiedler, are the three factors that combine to determine the leadership situation.

ANS: PTS: 1 DIF: 2 REF: 434
NAT: AACSB Analytic | Leadership Principles TYP: F

27. Task Structure refers to the extent to which the leader has formal authority over subordinates.

ANS: PTS: 1 DIF: 2 REF: 434
NAT: AACSB Analytic | Leadership Principles TYP: F

28. The task-oriented leader, according to Fiedler, excels in the favorable situation whereas relationship-oriented leaders are most effective in situations of moderate favorability.

ANS: PTS: 1 DIF: 2 REF: 435
NAT: AACSB Analytic | Leadership Principles TYP: F

29. A substitute counteracts the leadership style and prevents the leader from displaying certain behaviors.

ANS: PTS: 1 DIF: 2 REF: 436
NAT: AACSB Analytic | Leadership Principles TYP: F

30. A situational variable that counteracts a leadership style and prevents the leader from displaying certain behaviors is called a neutralizer.

ANS: PTS: 1 DIF: 2 REF: 436
NAT: AACSB Analytic | Leadership Principles TYP: F

31. The relationship-oriented leader performs better in situations of intermediate favorability because human relations skills are important in achieving high group performance.

ANS: PTS: 1 DIF: 2 REF: 435
NAT: AACSB Analytic | Leadership Principles TYP: F

32. An inspirational leader who has the ability to motivate subordinates, through personal transactions, to transcend their normal performance refers to a transactional leader.

ANS: PTS: 1 DIF: 2 REF: 439
NAT: AACSB Analytic | Leadership Principles TYP: F

33. The charismatic leader has the ability to motivate subordinates to transcend their expected performance.

ANS: PTS: 1 DIF: 2 REF: 437
NAT: AACSB Analytic | Leadership Principles TYP: F

34. A mission is an attractive, ideal future that is credible yet not readily attainable.

ANS: PTS: 1 DIF: 2 REF: 438
NAT: AACSB Analytic | Leadership Principles TYP: F

35. Charismatic leaders typically have a strong vision for the future and they can motivate others to help realize it.

ANS: PTS: 1 DIF: 2 REF: 438
NAT: AACSB Analytic | Leadership Principles TYP: F

36. A transformational leader is a leader distinguished by a special ability to bring about innovation and change.

ANS: PTS: 1 DIF: 1 REF: 439
NAT: AACSB Analytic | Leadership Principles TYP: F

37. Transactional leaders have the ability to lead changes in the organization’s mission, strategy, structure, and culture, as well as to promote innovation in products and technologies.

ANS: PTS: 1 DIF: 2 REF: 439
NAT: AACSB Analytic | Leadership Principles TYP: F

38. The pragmatic survivor is a follower who participates actively in the organization but does not use critical thinking skills.

ANS: PTS: 1 DIF: 2 REF: 441
NAT: AACSB Analytic | Leadership Principles TYP: F

39. The alienated follower is a person who is an independent, critical thinker but is passive in the organization.

ANS: PTS: 1 DIF: 2 REF: 441
NAT: AACSB Analytic | Leadership Principles TYP: F

40. Power is the potential ability to influence the behavior and decisions of other people.

ANS: PTS: 1 DIF: 1 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: F

41. The type of power that results from the leader’s legitimate authority, based upon his or her position within the organization, is called coercive power.

ANS: PTS: 1 DIF: 2 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: F

42. The effective follower exhibits neither critical, independent thinking nor active participation.

ANS: PTS: 1 DIF: 1 REF: 441
NAT: AACSB Analytic | Leadership Principles TYP: F

43. Influence is the effect a person’s actions have on the attitudes, values, beliefs, or behavior of others.

ANS: PTS: 1 DIF: 1 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: F

44. Mechanistic power is one of the five sources of power.

ANS: PTS: 1 DIF: 1 REF: 442-443
NAT: AACSB Analytic | Leadership Principles TYP: F

45. Legitimate, reward, and expert powers are all forms of position power.

ANS: PTS: 1 DIF: 1 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: F

46. When Lonnie shouts at Kerry in public for not finishing her work and suspends her for two days, he is using his coercive power.

ANS: PTS: 1 DIF: 2 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: A

47. Two types of personal powers are expert and reward powers.

ANS: PTS: 1 DIF: 1 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: F

48. The type of power that results from political referrals is referent power.

ANS: PTS: 1 DIF: 1 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: F

49. Rational persuasion is one interpersonal influence tactic available for leaders.

ANS: PTS: 1 DIF: 1 REF: 445
NAT: AACSB Analytic | Leadership Principles TYP: F

50. People who are entangled in a network of relationships have less power.

ANS: PTS: 1 DIF: 2 REF: 444
NAT: AACSB Analytic | Leadership Principles TYP: F

51. Effective leaders develop networks of allies; people who can help the leader accomplish his or her goals.

ANS: PTS: 1 DIF: 2 REF: 445
NAT: AACSB Analytic | Leadership Principles TYP: F

52. Research indicates people rate leaders as “more effective” when they are perceived to use one influence tactic.

ANS: PTS: 1 DIF: 2 REF: 446
NAT: AACSB Analytic | Leadership Principles TYP: F

53. A leader who works to fulfill subordinates’ needs and goals as well as to achieve the organization’s larger mission is called a servant leader.

ANS: PTS: 1 DIF: 1 REF: 424
NAT: AACSB Analytic | Leadership Principles TYP: F

54. Even when the needs of organizations change, the concept of leadership should stay the same.

ANS: PTS: 1 DIF: 2 REF: 422
NAT: AACSB Analytic | Leadership Principles TYP: F

55. A level 3 leader is someone who is able to organize people and resources toward the effective and efficient pursuit of predetermined objectives.

ANS: PTS: 1 DIF: 2 REF: 423
NAT: AACSB Analytic | Leadership Principles TYP: F

56. Level 5 leaders often set their successors up for failure because it will be a testament to their own greatness if the company doesn’t perform well without them.

ANS: PTS: 1 DIF: 2 REF: 424
NAT: AACSB Analytic | Leadership Principles TYP: F

57. Authentic leadership refers to individuals who know and understand themselves, act consistently with high ethical values, and empower others.

ANS: PTS: 1 DIF: 2 REF: 424
NAT: AACSB Analytic | Leadership Principles TYP: F

58. Authentic leaders lead with their heads instead of their hearts.

ANS: PTS: 1 DIF: 2 REF: 425
NAT: AACSB Analytic | Leadership Principles TYP: F

59. In a recent study, it was found that women and men ranked equally in leading the strategic planning process.

ANS: PTS: 1 DIF: 2 REF: 427
NAT: AACSB Analytic | Leadership Principles TYP: F

60. In a recent study, it was found that men were more capable in motivating others and producing high-quality work than women.

ANS: PTS: 1 DIF: 2 REF: 427
NAT: AACSB Analytic | Leadership Principles TYP: F

61. Personal power, innovation, and nurturing are consistently viewed as manager qualities rather than leader qualities.

ANS: PTS: 1 DIF: 2 REF: 428
NAT: AACSB Analytic | Leadership Principles TYP: F

62. Rather than just understanding their traits, the best leaders recognize and hone their strengths.

ANS: PTS: 1 DIF: 2 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: F

63. In the study of leadership, concern for tasks and concern for people are viewed as metacategories because they are broadly defined behaviors that are used as a basis for study and comparison.

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

64. A situation would be considered highly favorable to the leader when tasks are highly unstructured and the leader has little formal authority.

ANS: PTS: 1 DIF: 2 REF: 434
NAT: AACSB Analytic | Leadership Principles TYP: F

65. Humility plays an important part in distinguishing whether a charismatic leader will work to benefit primarily the larger organization or use his or her gifts for personal gain.

ANS: PTS: 1 DIF: 2 REF: 438
NAT: AACSB Analytic | Leadership Principles TYP: F

66. Transformational leaders are hardworking, tolerant, and fair-minded, but are not as capable of leading change as are transactional leaders.

ANS: PTS: 1 DIF: 2 REF: 439
NAT: AACSB Analytic | Leadership Principles TYP: F

67. An active follower is characterized by a need for constant supervision.

ANS: PTS: 1 DIF: 2 REF: 441
NAT: AACSB Analytic | Leadership Principles TYP: F

68. Use of rational persuasion and making use of higher authority are two commonly used influence tactics.

ANS: PTS: 1 DIF: 2 REF: 445
NAT: AACSB Analytic | Leadership Principles TYP: F

MULTIPLE CHOICE

1. ____ is the ability to influence people toward the attainment of organizational goals.
a. Motivation
b. Leadership
c. Persuasion
d. Commitment
e. Organizational citizenship

ANS: PTS: 1 DIF: 1 REF: 422
NAT: AACSB Analytic | Leadership Principles TYP: F

2. All of the following are essential parts of any definition of leadership EXCEPT
a. influence.
b. people.
c. goals.
d. coercive power.
e. influence and people only.

ANS: PTS: 1 DIF: 1 REF: 422
NAT: AACSB Analytic | Leadership Principles TYP: F

3. Leadership is reciprocal, according to your text. This means
a. it is dynamic.
b. it is a problem-solving activity.
c. it occurs between people.
d. redundant.
e. it always creates conflict.

ANS: PTS: 1 DIF: 2 REF: 422
NAT: AACSB Analytic | Leadership Principles TYP: F

4. Peter has the ability to convince others to work toward organizational objectives. This ability is known as
a. motivation.
b. leadership.
c. commitment.
d. a conceptual skill.
e. personal agenda.

ANS: PTS: 1 DIF: 2 REF: 422
NAT: AACSB Analytic | Leadership Principles TYP: A

5. ____ means being unpretentious and modest rather than arrogant and prideful.
a. Humility
b. Egotism
c. Altruism
d. Reserved
e. Assurance

ANS: PTS: 1 DIF: 2 REF: 423
NAT: AACSB Analytic | Leadership Principles TYP: F

6. Which of the following refers to the highest level in a hierarchy of manager capabilities?
a. Interactive leadership
b. Creative leadership
c. Level 5 leadership
d. Postheroic leadership
e. People-oriented leadership

ANS: PTS: 1 DIF: 2 REF: 423
NAT: AACSB Analytic | Leadership Principles TYP: F

7. The leader who builds an enduring great organization through a combination of personal humility and professional resolve is a ____ leader
a. Level 1
b. Level 2
c. Level 3
d. Level 4
e. Level 5

ANS: PTS: 1 DIF: 2 REF: 423
NAT: AACSB Analytic | Leadership Principles TYP: F

8. The leader who builds widespread commitment to a clear and compelling vision and stimulates people to high performance is a ____ leader
a. Level 1
b. Level 2
c. Level 3
d. Level 4
e. Level 5

ANS: PTS: 1 DIF: 2 REF: 423
NAT: AACSB Analytic | Leadership Principles TYP: F

9. According to research, ____ typically score higher on social and emotional skills.
a. level 5 leaders
b. women
c. postheroic leaders
d. men
e. minorities

ANS: PTS: 1 DIF: 2 REF: 426
NAT: AACSB Analytic | Leadership Principles TYP: F

10. All of the following are leadership qualities EXCEPT:
a. visionary.
b. innovative.
c. promotes change.
d. structured.
e. nurtures.

ANS: PTS: 1 DIF: 2 REF: 428
NAT: AACSB Analytic | Leadership Principles TYP: F

11. Which of the following is NOT a manager quality?
a. Maintains stability
b. Organizes
c. Analyzes
d. Rational
e. Personal power

ANS: PTS: 1 DIF: 2 REF: 428
NAT: AACSB Analytic | Leadership Principles TYP: F

12. The distinguishing personal characteristics of a leader are known as
a. traits.
b. sources of power.
c. leadership styles.
d. leadership behaviors.
e. personal preferences.

ANS: PTS: 1 DIF: 1 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: F

13. The early research on leadership traits was referred to as the
a. contingency theory of leadership.
b. path-goal theory of leadership.
c. great man approach.
d. situational theory of leadership.
e. behavioral approach.

ANS: PTS: 1 DIF: 2 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: F

14. In general, research has found a(n) ____ relationship between personal traits and leader success.
a. strong
b. weak
c. positive
d. negative
e. inverse

ANS: PTS: 1 DIF: 2 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: F

15. Recently, Beagle Boutique was attempting to hire a middle manager. They were looking for an intelligent, active, and creative individual. Which approach to leadership was Beagle using?
a. The contingency approach
b. The situational approach
c. The trait approach
d. The behavioral approach
e. The substitute approach

ANS: PTS: 1 DIF: 2 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: A

16. Which of the following characteristics of leaders have been studied?
a. Personality traits
b. Physical traits
c. Social traits
d. Work-related traits
e. all of these

ANS: PTS: 1 DIF: 2 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: F

17. Self-confidence, honesty and integrity, and the desire to lead, are all components of which personal characteristic of leaders?
a. Physical characteristics
b. Intelligence and Ability
c. Personality
d. Social Characteristics
e. Social Background

ANS: PTS: 1 DIF: 2 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: F

18. Colleen Farney at TeleTech shows vast knowledge, intelligence, cognitive ability, and keen decisiveness. Which personal characteristic of leadership is she showing?
a. Physical characteristics
b. Intelligence and Ability
c. Personality
d. Social Characteristics
e. Social Background

ANS: PTS: 1 DIF: 2 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: F

19. Researchers at the Ohio State University identified two major behaviors called
a. commitment and consideration.
b. commitment and initiation.
c. consideration and initiating structure.
d. initiating structure and commitment.
e. consideration and concern for people.

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

20. Megan is a manager at Botell International. She is very friendly and extremely respectful of her subordinate’s welfare. She can be described as
a. high in initiating structure.
b. low in initiating structure.
c. high in consideration.
d. a team leader.
e. task-oriented manager.

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: A

21. Which of the following is consistent with initiating structure?
a. Task oriented behavior
b. Open communication
c. Teamwork oriented
d. People oriented behavior
e. Country-club management style

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

22. The Michigan researchers used the term ____ for leaders who established high performance goals and displayed supportive behavior toward subordinates.
a. job-centered leaders
b. employee-centered leaders
c. initiating structure
d. consideration
e. impoverished management

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

23. The less effective leaders, in the University of Michigan studies, were called
a. job-centered leaders.
b. employee-centered leaders.
c. initiating structure.
d. consideration.
e. impoverished management.

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

24. ____ and ____ proposed a two dimensional leadership theory called the Managerial Grid.
a. Blake; Mouton
b. Hersey; Blanchard
c. Vroom; Yetton
d. Tannenbaum; Schmidt
e. Evans; House

ANS: PTS: 1 DIF: 1 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

25. The recommended management style from the leadership grid is
a. 1,9.
b. 9,1.
c. 5,5.
d. 1,1.
e. 9,9.

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

26. Which of these, according to the leadership grid, is a 1,9 management style?
a. Team Management
b. Country Club Management
c. Middle of the Road Management
d. Impoverished Management
e. Authority-Compliance

ANS: PTS: 1 DIF: 1 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

27. ____ reflects a moderate amount of concern for both people and production.
a. Team Management
b. Country Club Management
c. Middle of the Road Management
d. Impoverished Management
e. Authority-Compliance

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

28. According to the Leadership Grid, which of the following occurs when efficiency in operations is the dominant orientation?
a. Team Management
b. Country Club Management
c. Middle of the Road Management
d. Impoverished Management
e. Authority-Compliance

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

29. The Leadership Grid used the two leader behaviors which were called
a. employee-centered and job centered.
b. consideration and initiating structure.
c. concern for people and concern for production.
d. relationship-oriented and task-oriented.
e. employee-oriented and relationship oriented.

ANS: PTS: 1 DIF: 1 REF: 431
NAT: AACSB Analytic | Leadership Principles TYP: F

30. The key assumption of Hersey and Blanchard’s situational theory is that subordinates vary in their
a. readiness level.
b. satisfaction level.
c. level of commitment.
d. level of security.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: F

31. Hersey and Blanchard are responsible for which theory?
a. Theory of leadership
b. ERG Theory
c. Situational theory
d. Contingency theory
e. Leadership

ANS: PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: F

32. Which of the following is a model of leadership that describes the relationship between leadership styles and specific organizational situations?
a. Contingency approach
b. Behavioral approach
c. Trait approach
d. Organizational approach
e. None of these

ANS: PTS: 1 DIF: 1 REF: 433
NAT: AACSB Analytic | Leadership Principles TYP: F

33. A key difference between the theories of Fiedler and Hersey and Blanchard is that
a. Fiedler considered only task characteristics, while Hersey and Blanchard focused on the individual.
b. Hersey and Blanchard placed a greater emphasis on task characteristics than did Fiedler.
c. Fiedler examined a variety of characteristics, while Hersey and Blanchard focused solely on the individual.
d. All of these.
e. Fiedler considered only task characteristics, while Hersey and Blanchard focused on the individual and placed a greater emphasis on task characteristics than did Fiedler.

ANS: PTS: 1 DIF: 3 REF: 433
NAT: AACSB Analytic | Leadership Principles TYP: F

34. According to the situational theory of Hersey and Blanchard, which of the following leader styles matches up best with low readiness subordinates?
a. Delegating style
b. Selling style
c. Telling style
d. Participating style
e. None of these

ANS: PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: F

35. Ryan is a manager at Steve’s Stoneworks, Inc. Hersey and Blanchard would consider most of his subordinates highly ready. Based on this, which of the following leadership styles is best for Ryan?
a. Participating
b. Delegating
c. Selling
d. Telling
e. Forcing

ANS: PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: A

36. ____ works best for employees with moderate readiness, according to Hersey and Blanchard.
a. Selling and telling
b. Telling and participating
c. Selling and participating
d. Telling and delegating
e. Selling and delegating

ANS: PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: F

37. Two leadership styles used by Fiedler in his contingency theory were
a. employee-centered and job-centered.
b. consideration and initiating structure.
c. concern for people and concern for production.
d. relationship-oriented and task-oriented.
e. employee-oriented and relations-oriented.

ANS: PTS: 1 DIF: 2 REF: 434
NAT: AACSB Analytic | Leadership Principles TYP: F

38. Which of the following refers to group atmosphere and members’ attitude toward and acceptance of the leader?
a. Task structure
b. Leader relations
c. Contingency
d. Position power
e. Leader-member relations

ANS: PTS: 1 DIF: 2 REF: 434
NAT: AACSB Analytic | Leadership Principles TYP: F

39. Fiedler used all of the following to describe how leaders fit the situation EXCEPT
a. leader-member relations.
b. task structure.
c. personal power.
d. leader position power.
e. all of these were used by Fiedler to describe the situation.

ANS: PTS: 1 DIF: 2 REF: 434
NAT: AACSB Analytic | Leadership Principles TYP: F

40. In situations of ____, according to Fiedler, relationship-oriented leaders are more effective.
a. high favorability
b. moderate favorability
c. high unfavorability
d. no favorability
e. none of these

ANS: PTS: 1 DIF: 2 REF: 435
NAT: AACSB Analytic | Leadership Principles TYP: F

41. A ____ is a situational variable that makes a leadership style unnecessary or redundant.
a. neutralizer
b. substitute
c. contingency
d. transaction
e. transformation

ANS: PTS: 1 DIF: 1 REF: 436
NAT: AACSB Analytic | Leadership Principles TYP: F

42. Ahmad is a new manager at AJ Homes Company. He has absolutely no experience as a manager nor does he know the technology of his department well. These two factors prevent Ahmad from directing his workforce. This is an example of ____ impacting leadership styles and behaviors.
a. substitutes
b. neutralizers
c. contingencies
d. citizenship
e. transformation

ANS: PTS: 1 DIF: 3 REF: 436
NAT: AACSB Analytic | Leadership Principles TYP: A

43. Which of the following types of leader is one who has the ability to motivate subordinates to transcend their expected performance?
a. Transactional
b. Charismatic
c. Traditional
d. Supportive
e. Team

ANS: PTS: 1 DIF: 1 REF: 437
NAT: AACSB Analytic | Leadership Principles TYP: F

44. Marion is a great manager and he has a number of special skills. In particular, Marion has the ability to get his subordinates to do more than would be normally expected. Which of the following terms best describes Marion?
a. Transactional leader
b. Supportive leader
c. Charismatic leader
d. People-oriented leader
e. Production-oriented leader

ANS: PTS: 1 DIF: 2 REF: 437
NAT: AACSB Analytic | Leadership Principles TYP: A

45. Charismatic leaders are often ____ than transactional leaders.
a. less emotional
b. more predictable
c. less predictable
d. more directive
e. none of these

ANS: PTS: 1 DIF: 2 REF: 437
NAT: AACSB Analytic | Leadership Principles TYP: F

46. Some of the key characteristics associated with charismatic leaders include
a. visionary skills.
b. communication skills.
c. motivation skills.
d. all of these.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 438
NAT: AACSB Analytic | Leadership Principles TYP: F

47. According to MANAGER’S SHOPTALK in Chapter 15, charismatic leaders do all of the following EXCEPT
a. give people a sense of mission and overall purpose
b. look for the new product or service opportunities
c. command respect from everyone in the department
d. work alone to accomplish important tasks
e. inspire loyalty to self and the organization

ANS: PTS: 1 DIF: 2 REF: 438
NAT: AACSB Analytic TYP: F

48. The ____ leader is distinguished by his/her ability to bring about organizational change.
a. transformational
b. participative
c. charismatic
d. achievement-oriented
e. people-oriented leader

ANS: PTS: 1 DIF: 1 REF: 439
NAT: AACSB Analytic | Leadership Principles TYP: F

49. Which type of leader clarifies the role and task requirements of subordinates?
a. Transactional
b. Charismatic
c. Transformational
d. Supportive
e. Team

ANS: PTS: 1 DIF: 1 REF: 439
NAT: AACSB Analytic | Leadership Principles TYP: F

50. Which of the following is a passive, independent, critical thinker?
a. Conformist
b. Passive follower
c. Pragmatic survivor
d. Effective follower
e. Alienated follower

ANS: PTS: 1 DIF: 2 REF: 441
NAT: AACSB Analytic | Leadership Principles TYP: F

51. Which of the following is a follower who participates actively in the organization but does not use critical thinking skills?
a. Passive follower
b. Effective follower
c. Alienated follower
d. Conformist
e. Pragmatic survivor

ANS: PTS: 1 DIF: 2 REF: 441
NAT: AACSB Analytic | Leadership Principles TYP: F

52. Which of these is the potential ability to influence the behavior of others?
a. Leadership
b. Management
c. Power
d. Control
e. Motivation

ANS: PTS: 1 DIF: 1 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: F

53. ____ power comes from organizational structure and promotes stability, order, and problem solving within the structure.
a. Motivation
b. Position
c. Leadership
d. Control
e. Referent

ANS: PTS: 1 DIF: 1 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: F

54. ____ power comes from personal sources that are not as invested in the organization, such as personal interests, goals, and values.
a. Motivation
b. Management
c. Personal
d. Control
e. Positional

ANS: PTS: 1 DIF: 1 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: F

55. Which of the following is the power coming from a formal management position in the organization?
a. Referent power
b. Coercive power
c. Reward power
d. Legitimate power
e. Expert power

ANS: PTS: 1 DIF: 2 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: F

56. Ian does not have much of a relationship with his subordinates. They feel obligated to do as he says because he’s the boss. This is an example of
a. referent power.
b. legitimate power.
c. coercive power.
d. reward power.
e. expert power.

ANS: PTS: 1 DIF: 2 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: A

57. Candice uses praise, letters of support, and pats on the back as ways of influencing her subordinate’s behaviors. All of these actions are highly valued by the work group. This is an example of
a. coercive power.
b. legitimate power.
c. reward power.
d. expert power.
e. referent power.

ANS: PTS: 1 DIF: 2 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: A

58. ____ power is based in the ability of the leader to do such things as recommend promotions.
a. Coercive
b. Expert
c. Reward
d. Referent
e. Personal

ANS: PTS: 1 DIF: 1 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: F

59. Which of the following types of power is vested in the manager’s ability to punish employees?
a. Coercive
b. Reward
c. Expert
d. Referent
e. Personal

ANS: PTS: 1 DIF: 1 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: F

60. Beth, a middle manager at Heather’s Handbags, uses threats and punishments as ways of influencing the behavior of his subordinates. Which of the following sources of power is Beth relying on?
a. Reward power
b. Coercive power
c. Expert power
d. Referent power
e. Personal power

ANS: PTS: 1 DIF: 2 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: A

61. Which of the following types of power stems from a leader’s special knowledge?
a. Reward power
b. Referent power
c. Legitimate power
d. Coercive power
e. None of these

ANS: PTS: 1 DIF: 1 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: F

62. Referent power depends on the leader’s
a. formal title.
b. position in the hierarchy.
c. personal characteristics.
d. salary.
e. reward power.

ANS: PTS: 1 DIF: 1 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: F

63. The seven interpersonal influence tactics for leaders include all of the following EXCEPT:
a. use rational persuasion.
b. rely on the rule of reciprocity.
c. develop allies.
d. do not worry about people liking you.
e. reward the behaviors you want.

ANS: PTS: 1 DIF: 2 REF: 445
NAT: AACSB Analytic | Leadership Principles TYP: F

64. Which of the following is the most frequently used and a highly effective influence strategy?
a. Using rational persuasion
b. Rewarding desired behaviors
c. Relying on the rule of reciprocity
d. Making people like you
e. Developing allies

ANS: PTS: 1 DIF: 2 REF: 445
NAT: AACSB Analytic | Leadership Principles TYP: F

65. All of the following are interpersonal influence tactics EXCEPT:
a. reward the behaviors you want.
b. develop allies.
c. rely on the rule of demand.
d. make use of higher authority.
e. ask for what you want.

ANS: PTS: 1 DIF: 1 REF: 445
NAT: AACSB Analytic | Leadership Principles TYP: F

66. A(n)____ leader works to fulfill subordinated needs and goals as well as to achieve the organization’s larger mission.
a. servant
b. transactional
c. transformational
d. charismatic
e. interactive

ANS: PTS: 1 DIF: 1 REF: 424
NAT: AACSB Analytic | Leadership Principles TYP: F

67. All of the following are major approaches to leadership EXCEPT:
a. Level 5 leadership
b. Servant leadership
c. Authentic leadership
d. Progressive leadership
e. Interactive leadership

ANS: PTS: 1 DIF: 2 REF: 422
NAT: AACSB Analytic | Leadership Principles TYP: F

68. Linda is viewed by her colleagues as someone who makes productive contributions through talent, knowledge, and good work habits, but she is sometimes hard to work with because of her communication style. Based on the Level 5 leadership spectrum, Linda would be placed in which category?
a. Level 1: Highly capable individual
b. Level 2: Contributing team member
c. Level 3: Competent manager
d. Level 4: Effective leader
e. Level 5: Level 5 executive

ANS: PTS: 1 DIF: 3 REF: 423
NAT: AACSB Analytic | Leadership Principles TYP: A

69. Ricky is well loved by his co-workers at Axel Cable Inc. He is viewed as having a great deal of humility, often giving credit for successes to other members of his team. As such, Ricky would be placed in which category of the Level 5 leadership spectrum?
a. Level 1: Highly capable individual
b. Level 2: Contributing team member
c. Level 3: Competent manager
d. Level 4: Effective leader
e. Level 5: Level 5 executive

ANS: PTS: 1 DIF: 3 REF: 423
NAT: AACSB Analytic | Leadership Principles TYP: A

70. Jerome, a manager at Welford Nonprofit Group, is known for his selflessness and willingness to give to others. He likes working in the nonprofit sector because he wants to apply his skills and abilities to serve others who are less fortunate. Based on this information, which type of leader best describes Jerome?
a. Level 5 leader
b. Servant leader
c. Authentic leader
d. Transformational leader
e. Interactive leader

ANS: PTS: 1 DIF: 3 REF: 424
NAT: AACSB Analytic | Leadership Principles TYP: A

71. __________ leaders know and understand themselves, act consistently with high order ethical values, and empower and inspire others.
a. Level 5
b. Servant
c. Authentic
d. Transformational
e. Interactive

ANS: PTS: 1 DIF: 2 REF: 424
NAT: AACSB Analytic | Leadership Principles TYP: F

72. At work, Sue Ellen favors a consensual and collaborative process, where influence derives from relationships rather than positions of power and formal authority. As such, she can best be viewed as what type of leader?
a. Level 5
b. Servant
c. Authentic
d. Transformational
e. Interactive

ANS: PTS: 1 DIF: 3 REF: 425
NAT: AACSB Analytic | Leadership Principles TYP: A

73. Which of the following is NOT a valid component of authentic leadership?
a. Pursues purpose with passion
b. Isolates self from others
c. Leads with the heart as well as the head
d. Demonstrates self-discipline
e. Practices solid values

ANS: PTS: 1 DIF: 2 REF: 425
NAT: AACSB Analytic | Leadership Principles TYP: F

74. _______ are natural talents and abilities that have been supported and reinforced with learned knowledge and skills and provide each individual with his or her best tools for accomplishment and satisfaction.
a. Strengths
b. Traits
c. Characteristics
d. Abilities
e. Leadership tendencies

ANS: PTS: 1 DIF: 2 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: F

75. Wilson is viewed by his boss as driven, tenacious, and hardworking in the pursuit of his goals. These characteristics fit within which category?
a. Physical characteristics
b. Intelligence and ability
c. Work-related characteristics
d. Social background
e. Social characteristics

ANS: PTS: 1 DIF: 3 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: A

76. According to the leadership grid, _____________ means the absence of a management philosophy, where managers exert little effort toward interpersonal relationships or work accomplishment.
a. solitary management
b. middle-of-the-road management
c. low-road management
d. authority-compliance management
e. impoverished management

ANS: PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

77. Sandra views herself as a tough but fair supervisor. She gives explicit directions to her subordinates about how tasks should be accomplished, but is not always approachable when they come to her with questions. Her employees sometimes feel that she is too gruff and impersonal. Which category on the situational leadership grid does Sandra fit into?
a. Following style
b. Delegating style
c. Participating style
d. Telling style
e. Selling style

ANS: PTS: 1 DIF: 3 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: A

78. “A fire that ignites followers” is used to describe which leadership characteristic?
a. Vision
b. Charisma
c. Service
d. Tenacity
e. Authority

ANS: PTS: 1 DIF: 2 REF: 437
NAT: AACSB Analytic | Leadership Principles TYP: F

79. Andy’s subordinates say that they love working for Andy because he inspires them to not only believe in the organization but to believe in their own potential as well. Based on this example, Andy can best be described as what type of leader?
a. Transformational
b. Servant
c. Authentic
d. Transactional
e. Interactive

ANS: PTS: 1 DIF: 3 REF: 439
NAT: AACSB Analytic | Leadership Principles TYP: A

80. One of Ruby’s few flaws is that she does not consider possibilities beyond what she is told, accepting her supervisor’s ideas without thinking. She can best be described as what type of thinker?
a. Transformational
b. Servant
c. Uncritical
d. Transactional
e. Critical

ANS: PTS: 1 DIF: 3 REF: 440
NAT: AACSB Analytic | Leadership Principles TYP: A

81. When leaders influence others through the exchange of benefits or favors, which influence tactic is being used?
a. Develop allies
b. Use rational persuasion
c. Make people like you
d. Rule of reciprocity
e. Reward behaviors

ANS: PTS: 1 DIF: 2 REF: 445
NAT: AACSB Analytic | Leadership Principles TYP: F

CASE

Scenario – Barry Bailey

The mandatory leadership-training seminar had just been concluded. All of the newly promoted managers at Marc’s Music, Inc. had been asked to attend and participate in the two-day seminar, and Barry Bailey had been fascinated with what she had learned. She is now reviewing the material she covered.

1. Barry will develop strong skills in working with her people and also strong ability in accomplishing the task achieving the goals of Marc’s Music. On the managerial grid, her style will be
a. 1,1.
b. 9,9.
c. 9,1.
d. 1,9.
e. 5,5.

ANS:

PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles KEY: Scenario Questions
TYP: A

2. Barry recognizes that her power can come from five sources, including all of the following EXCEPT
a. referent power.
b. reward power.
c. coercive power.
d. mechanistic power.
e. All of the sources of power.

ANS:

PTS: 1 DIF: 2 REF: 442-443
NAT: AACSB Analytic | Leadership Principles KEY: Scenario Questions
TYP: A

3. To become a level 5 leader, Barry would have to hone which personal characteristic?
a. Humility
b. Tenacity
c. Ruthlessness
d. Drive
e. Ego

ANS:

PTS: 1 DIF: 3 REF: 423
NAT: AACSB Analytic | Leadership Principles KEY: Scenario Questions
TYP: A

4. Barry learns of a recent study on gender differences in leadership behaviors. In which area of leadership do women score more highly than men?
a. Motivating others
b. Fostering communication
c. Producing high-quality work
d. Listening to others
e. All of the above

ANS:

PTS: 1 DIF: 3 REF: 427
NAT: AACSB Analytic | Leadership Principles KEY: Scenario Questions
TYP: A

COMPLETION

1. The ability to influence people toward the attainment of goals is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 422
NAT: AACSB Analytic | Leadership Principles TYP: F

2. In ____________________, the leader favors a consensual and collaborative process, and influence derives from relationships rather than position power and formal authority.

ANS:

PTS: 1 DIF: 2 REF: 425
NAT: AACSB Analytic | Leadership Principles TYP: F

3. ____________________ are the distinguishing personal characteristics of a leader, such as intelligence, values, and appearance.

ANS:

PTS: 1 DIF: 2 REF: 429
NAT: AACSB Analytic | Leadership Principles TYP: F

4. ____________________ is the extent to which the leader is mindful of subordinates, respects their ideas and feelings, and establishes mutual trust.

ANS:

PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

5. ____________________ is the extent to which the leader is task oriented and directs subordinates’ work activities toward goal attainment.

ANS:

PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

6. ____________________, according to the Leadership Grid, occurs when efficiency in operations is the dominant orientation.

ANS:

PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

7. A contingency approach to leadership that links the leader’s behavioral style with the task readiness of subordinates is called the ____________________.

ANS:

PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: F

8. A model of leadership that describes the relationship between leadership styles and specific organizational situations is called a(n) ____________________ approach

ANS:

PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: F

9. According to Hersey and Blanchard, ____________________ and ____________________ works best for employees with moderate readiness.

ANS:

PTS: 1 DIF: 2 REF: 432
NAT: AACSB Analytic | Leadership Principles TYP: F

10. A(n) ____________________ for leadership makes the leadership style unnecessary or redundant.

ANS:

PTS: 1 DIF: 2 REF: 436
NAT: AACSB Analytic | Leadership Principles TYP: F

11. A situational variable that counteracts a leadership style is known as a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 436
NAT: AACSB Analytic | Leadership Principles TYP: F

12. ____________________ clarify the role and task requirements of subordinates, initiate structure, provide appropriate rewards, and try to be considerate to and meet the social needs of subordinates.

ANS:

PTS: 1 DIF: 2 REF: 439
NAT: AACSB Analytic | Leadership Principles TYP: F

13. The ____________________ has the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacrifice.

ANS:

PTS: 1 DIF: 2 REF: 437
NAT: AACSB Analytic | Leadership Principles TYP: F

14. A(n) ____________________ leader is distinguished by a special ability to bring about innovation and change.

ANS

PTS: 1 DIF: 2 REF: 439
NAT: AACSB Analytic | Leadership Principles TYP: F

15. ____________________ is the potential ability to influence the behavior of others.

ANS:

PTS: 1 DIF: 2 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: F

16. Power coming from a formal management position in an organization and the authority granted to it is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: F

17. Power that results from the authority to reward others is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: F

18. Power that stems from the authority to punish or recommend punishment is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: F

19. Power resulting from a leader’s special knowledge or skill regarding the tasks performed by followers is referred to as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: F

20. Power that results from characteristics that command subordinates’ identification with, respect and admiration for and desire to emulate the leader is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: F

21. ____________________ leadership transcends self interest to serve others and the organization.

ANS:

PTS: 1 DIF: 2 REF: 424
NAT: AACSB Analytic | Leadership Principles TYP: F

SHORT ANSWER

1. List the two dimensions used in Blake and Mouton’s Leadership Grid.

ANS:

PTS: 1 DIF: 2 REF: 431
NAT: AACSB Analytic | Leadership Principles TYP: F

2. List the two types of personal power.

ANS:

PTS: 1 DIF: 2 REF: 443
NAT: AACSB Analytic | Leadership Principles TYP: F

ESSAY

1. What is the basic difference between consideration behavior and initiating structure behavior?

ANS:

PTS: 1 DIF: 2 REF: 430
NAT: AACSB Analytic | Leadership Principles TYP: F

2. Describe the three situational elements under Fiedler’s Contingency Theory that can be described as either favorable or unfavorable.

ANS:

PTS: 1 DIF: 2 REF: 434
NAT: AACSB Analytic | Leadership Principles TYP: F

3. What three factors combine to create the situation in Fiedler’s Leadership Contingency Theory? Explain each.

ANS:

PTS: 1 DIF: 3 REF: 434
NAT: AACSB Analytic | Leadership Principles TYP: F

4. Differentiate between a substitute and a neutralizer.

ANS:

PTS: 1 DIF: 2 REF: 436
NAT: AACSB Analytic | Leadership Principles TYP: F

5. Distinguish between charismatic and transformational leadership.

ANS:

PTS: 1 DIF: 2 REF: 437-439
NAT: AACSB Analytic | Leadership Principles TYP: F

6. Describe the five bases of power typical in organizations.

ANS:

PTS: 1 DIF: 2 REF: 442
NAT: AACSB Analytic | Leadership Principles TYP: F

7. Describe the seven interpersonal influence tactics for leaders.

ANS:

PTS: 1 DIF: 2 REF: 445
NAT: AACSB Analytic | Leadership Principles TYP: F
Chapter 16—Motivating Employees

TRUE/FALSE

1. The arousal, direction and persistence of behavior refers to motivation.

ANS: PTS: 1 DIF: 1 REF: 452
NAT: AACSB Analytic | Motivation Concepts TYP: F

2. Employee motivation affects productivity, and part of a manager’s job is to channel motivation toward the accomplishment of organizational goals.

ANS: PTS: 1 DIF: 2 REF: 452
NAT: AACSB Analytic | Motivation Concepts TYP: F

3. Two ways to classify rewards are extrinsic and monetary.

ANS: PTS: 1 DIF: 1 REF: 452
NAT: AACSB Analytic | Motivation Concepts TYP: F

4. Rewards given by another person are intrinsic rewards.

ANS: PTS: 1 DIF: 1 REF: 452
NAT: AACSB Analytic | Motivation Concepts TYP: F

5. Extrinsic rewards refers to the satisfaction a person receives in the process of performing a particular action.

ANS: PTS: 1 DIF: 1 REF: 453
NAT: AACSB Analytic | Motivation Concepts TYP: F

6. Process theories emphasize the needs that motivate people.

ANS: PTS: 1 DIF: 2 REF: 453
NAT: AACSB Analytic | Motivation Concepts TYP: F

7. Three categories of motivation theories are content theories, process theories, and reinforcement theories.

ANS: PTS: 1 DIF: 2 REF: 453
NAT: AACSB Analytic | Motivation Concepts TYP: F

8. Content theories concern the thought processes that influence behavior.

ANS: PTS: 1 DIF: 1 REF: 453
NAT: AACSB Analytic | Motivation Concepts TYP: F

9. Physiological needs are the most basic human physical needs, which are reflected in the workplace as needs for adequate heat, air, and base salary to ensure survival.

ANS: PTS: 1 DIF: 1 REF: 454
NAT: AACSB Analytic | Motivation Concepts TYP: F

10. In Maslow’s hierarchy of needs theory, food, water, and freedom from violence are examples of physiological needs.

ANS: PTS: 1 DIF: 2 REF: 454
NAT: AACSB Analytic | Motivation Concepts TYP: F

11. Esteem needs are those needs that relate to the desire for a positive self-image and to receive attention, recognition, and appreciation from others.

ANS: PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

12. The highest level of need in Maslow’s hierarchy of need theory is the need for growth and self-expression.

ANS: PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

13. External and relatedness are the first two groups of needs in Aldefer’s ERG theory.

ANS: PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

14. Many companies are finding that creating a humane work environment that allows people to achieve a balance between work and personal life is also a great high-level motivator.

ANS: PTS: 1 DIF: 2 REF: 456
NAT: AACSB Analytic | Motivation Concepts TYP: F

15. The idea that failure to meet a high-order need may cause a regression to an already satisfied lower-order need was put forth by Maslow.

ANS: PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

16. Herzberg’s two-factor theory divides work-related needs into two categories: hygiene factors and reward factors.

ANS: PTS: 1 DIF: 2 REF: 457
NAT: AACSB Analytic | Motivation Concepts TYP: F

17. Factors that influence job satisfaction based on fulfillment of high-level needs such as achievement, recognition, and opportunity for growth are called motivators.

ANS: PTS: 1 DIF: 1 REF: 457
NAT: AACSB Analytic | Motivation Concepts TYP: F

18. Hygiene factors are the same as dissatisfiers and include company policies and procedures.

ANS: PTS: 1 DIF: 2 REF: 457
NAT: AACSB Analytic | Motivation Concepts TYP: F

19. Hygiene factors are the same as satisfiers and are based on fulfillment of higher level needs including responsibility.

ANS: PTS: 1 DIF: 2 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: F

20. The implication of the two-factor theory for managers is clear. Providing hygiene factors will eliminate employee dissatisfaction but will not motivate workers to high achievement levels.

ANS: PTS: 1 DIF: 3 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: F

21. A need for power, a need for accomplishment and a need for superior power is proposed by David McClelland’s acquired needs theory.

ANS: PTS: 1 DIF: 2 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: F

22. A high need for power often is associated with successful attainment of top levels in the organizational hierarchy.

ANS: PTS: 1 DIF: 2 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: F

23. A need for affiliation is the desire to accomplish something difficult, attain a high standard of success, master complex tasks, and surpass others.

ANS: PTS: 1 DIF: 2 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: F

24. The group of theories that explain how employees meet their needs and determine their success are called process theories.

ANS: PTS: 1 DIF: 1 REF: 459
NAT: AACSB Analytic | Motivation Concepts TYP: F

25. The equality theory is a process theory that focuses on individuals’ perception of how fairly they are treated in comparison to other people.

ANS: PTS: 1 DIF: 2 REF: 460
NAT: AACSB Analytic | Motivation Concepts TYP: F

26. Goal-setting theory proposes that managers can increase motivation by setting specific, challenging goals that are accepted as valid by subordinates, then helping people track their progress toward goal achievement by providing timely feedback.

ANS: PTS: 1 DIF: 2 REF: 459-460
NAT: AACSB Analytic | Motivation Concepts TYP: F

27. Goal specificity, in goal-setting theory, refers to the difficulty level of goals.

ANS: PTS: 1 DIF: 1 REF: 460
NAT: AACSB Analytic | Motivation Concepts TYP: F

28. The equity theory focuses on individual’s perceptions of how fairly they are treated relative to others.

ANS: PTS: 1 DIF: 3 REF: 460
NAT: AACSB Analytic | Motivation Concepts TYP: F

29. The equity theory, by J. Stacy Adams, states that equity exists when the ratio of outcomes to inputs for one person is equal to the same ratio for another person.

ANS: PTS: 1 DIF: 2 REF: 461
NAT: AACSB Analytic | Motivation Concepts TYP: F

30. Expectancy theory is based on the relationship among the individual’s effort and performance and not on the desirability of outcomes.

ANS: PTS: 1 DIF: 1 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

31. Goal acceptance, in goal-setting theory, means that employees have to “buy into” the goals and be committed to them.

ANS: PTS: 1 DIF: 2 REF: 460
NAT: AACSB Analytic | Motivation Concepts TYP: F

32. Motivation increases, according to the expectancy theory, when the worker believes that the successful performance will result by putting effort into a given task. This is called E-P expectancy.

ANS: PTS: 1 DIF: 2 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

33. According to expectancy theory, for an employee to be highly motivated, E-P expectancy and valence must be maximized.

ANS: PTS: 1 DIF: 2 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

34. Valence is the perceived value of a reward or outcome.

ANS: PTS: 1 DIF: 1 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

35. The expectancy theory attempts to define specific types of needs or rewards to establish that they exist and may be similar to other individuals.

ANS: PTS: 1 DIF: 2 REF: 463
NAT: AACSB Analytic | Motivation Concepts TYP: F

36. Behavior that is positively reinforced tends to be repeated, and behavior that is not reinforced tends not to be repeated, as stated in the Law of Effect.

ANS: PTS: 1 DIF: 1 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

37. The expectancy theory is a motivation theory based on the relationship between a given behavior and its consequences.

ANS: PTS: 1 DIF: 2 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

38. The administration of a pleasant and rewarding consequence following a desired behavior is positive reinforcement.

ANS: PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

39. The imposition of unpleasant outcomes on an employee is avoidance learning.

ANS: PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

40. Punishment increases the likelihood that behavior will be repeated.

ANS: PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

41. Punishment is the imposition of an unpleasant outcome following undesirable behavior.

ANS: PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

42. Extinction is defined as the withdrawal of positive reward.

ANS: PTS: 1 DIF: 1 REF: 466
NAT: AACSB Analytic | Motivation Concepts TYP: F

43. Job rotation systematically moves employees from one job to another, thereby increasing the number of different tasks an employee performs without increasing the complexity of any one job.

ANS: PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

44. According to MANAGER’S SHOPTALK in Chapter 16, a criticism of carrot-and-stick approaches is that extrinsic rewards assume people are driven by higher-level needs.

ANS: PTS: 1 DIF: 2 REF: 467
NAT: AACSB Analytic | Motivation Concepts TYP: F

45. Job enlargement is a job design that incorporates achievement, recognition, and other high-level motivators into the work.

ANS: PTS: 1 DIF: 1 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

46. Job enlargement combines a series of tasks into one new, broader job.

ANS: PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

47. The degree to which the job is perceived as important and having an impact on the company or customers refers to task significance.

ANS: PTS: 1 DIF: 1 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

48. The job characteristic of autonomy influences the worker’s experiencing meaningfulness of work.

ANS: PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

49. The altering of jobs to increase both the quality of employees’ work experience and their productivity is called reorganization.

ANS: PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

50. Skill variety, task identity, and task significance tend to influence the employee’s psychological state of experienced meaningfulness of work.

ANS: PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

51. A recent study indicates that the link between intrinsic characteristics and job motivation and satisfaction is stronger in economically disadvantaged countries and high power distance countries.

ANS: PTS: 1 DIF: 2 REF: 471
NAT: AACSB Analytic | Motivation Concepts TYP: F

52. Gain sharing rewards employees with part ownership of the organization based on achieving performance goals.

ANS: PTS: 1 DIF: 2 REF: 472
NAT: AACSB Analytic | Motivation Concepts TYP: F

53. Empowering employees means giving them four elements that enable them to act more freely to accomplish their jobs: information, knowledge, power, and rewards.

ANS: PTS: 1 DIF: 2 REF: 472
NAT: AACSB Analytic | Motivation Concepts TYP: F

54. Organizations that empower employees often reward them based on the results shown in the company’s bottom line.

ANS: PTS: 1 DIF: 2 REF: 473
NAT: AACSB Analytic | Motivation Concepts TYP: F

55. Employee engagement means that people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization.

ANS: PTS: 1 DIF: 2 REF: 473
NAT: AACSB Analytic | Motivation Concepts TYP: F

56. Engaged employees are controlled and coerced in the workplace until they grow into contributable employees.

ANS: PTS: 1 DIF: 2 REF: 474
NAT: AACSB Analytic | Motivation Concepts TYP: F

57. Maslow’s hierarchy of needs theory proposes that people are motivated by multiple needs and that these needs exist in a hierarchical order.

ANS: PTS: 1 DIF: 2 REF: 454
NAT: AACSB Analytic | Motivation Concepts TYP: F

58. Freedom from violence in the workplace is an example of physiological needs on the hierarchy of needs spectrum.

ANS: PTS: 1 DIF: 2 REF: 454
NAT: AACSB Analytic | Motivation Concepts TYP: A

59. Because the ERG model proposes that workers cannot revert back to lower-level needs from time to time, this model is more rigid than Maslow’s hierarchy of needs.

ANS: PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

60. The acquired needs theory proposes that certain types of needs are acquired during the individual’s lifetime.

ANS: PTS: 1 DIF: 1 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: F

61. Research suggests that if people artificially increase the status attached to their jobs, they are still unlikely to change their perceptions of equity.

ANS: PTS: 1 DIF: 2 REF: 461
NAT: AACSB Analytic | Motivation Concepts TYP: F

62. The implication of equity theory for managers is that employees indeed evaluate the perceived equity of their rewards compared to others’.

ANS: PTS: 1 DIF: 2 REF: 461
NAT: AACSB Analytic | Motivation Concepts TYP: F

63. Expectancy theory is concerned not with the thinking process that individuals use to achieve rewards but with identifying types of needs.

ANS: PTS: 1 DIF: 2 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

64. One weakness of the use of punishment in organizations is that it fails to indicate the correct behavior.

ANS: PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

65. Experiential learning theory proposes that an individual’s motivation can result not just from direct experience of rewards and punishments but also from the person’s thoughts and beliefs and his or her observations of other people’s behaviors.

ANS: PTS: 1 DIF: 2 REF: 466
NAT: AACSB Analytic | Motivation Concepts TYP: F

66. Self-reinforcement refers to an individual motivating him or herself by setting goals and ways of reaching them and then providing positive reinforcement to him- or herself when goals are achieved.

ANS: PTS: 1 DIF: 2 REF: 468
NAT: AACSB Analytic | Motivation Concepts TYP: F

67. Self-control is an individual’s belief about his or her abilities to successfully accomplish a specific task or outcome.

ANS: PTS: 1 DIF: 2 REF: 468
NAT: AACSB Analytic | Motivation Concepts TYP: F

68. Job enrichment is the application of motivational theories to the design of jobs for improving productivity and satisfaction.

ANS: PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

69. The greater the level of skill variety, task variety, and autonomy in a job, the more employees will be motivated and the higher will be performance, quality, and satisfaction.

ANS: PTS: 1 DIF: 2 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

70. Employee stock ownership plans give employees part ownership of the organization, enabling them to share in improved profit performance.

ANS: PTS: 1 DIF: 2 REF: 472
NAT: AACSB Analytic | Motivation Concepts TYP: F

71. Employee empowerment means that people enjoy their jobs and are satisfied with their work conditions, contribute to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization.

ANS: PTS: 1 DIF: 2 REF: 473
NAT: AACSB Analytic | Motivation Concepts TYP: F

MULTIPLE CHOICE

1. Which of the following is the arousal, direction, and persistence of behavior?
a. Commitment
b. Motivation
c. Satisfaction
d. Rewarding behavior
e. Behavior modification

ANS: PTS: 1 DIF: 1 REF: 452
NAT: AACSB Analytic | Motivation Concepts TYP: F

2. ____ refers to a reward given by another person.
a. An intrinsic reward
b. An internal reward
c. An extrinsic reward
d. A valued reward
e. A charity

ANS: PTS: 1 DIF: 1 REF: 453
NAT: AACSB Analytic | Motivation Concepts TYP: F

3. Katie dislikes almost everything about her job. The only reason she continues to work at Mace Autobody is the excellent benefits package she receives. Katie is motivated by
a. extrinsic rewards.
b. intrinsic rewards.
c. variable rewards.
d. all of these.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 453
NAT: AACSB Analytic | Motivation Concepts TYP: A

4. ____ is an example of an intrinsic reward.
a. An employee’s feelings of self-worth
b. A pat on the back from your boss
c. A pay raise
d. A promotion
e. A bonus

ANS: PTS: 1 DIF: 2 REF: 452
NAT: AACSB Analytic | Motivation Concepts TYP: F

5. Which of the following theories emphasize the needs that motivate people?
a. Process
b. Reinforcement
c. Content
d. Contingency
e. Situational

ANS: PTS: 1 DIF: 1 REF: 454
NAT: AACSB Analytic | Motivation Concepts TYP: F

6. Which of the following is a content theory that proposes that people are motivated by physiological, safety, belongingness, esteem, and self-actualization needs?
a. Reinforcement theory
b. Process theory
c. Situational theory
d. Hierarchy of needs theory
e. Contingency theory

ANS: PTS: 1 DIF: 2 REF: 454
NAT: AACSB Analytic | Motivation Concepts TYP: F

7. ____ focus on employee learning of desired work behaviors.
a. Contingency theories
b. Situational theories
c. Content theories
d. Process theories
e. Reinforcement theories

ANS: PTS: 1 DIF: 1 REF: 464
NAT: AACSB Analytic | Motivation Concepts TYP: F

8. Which of the following is NOT a need proposed by Maslow in his hierarchy of needs theory?
a. Safety needs
b. Compensation needs
c. Physiological needs
d. Esteem needs
e. Self-actualization needs

ANS: PTS: 1 DIF: 2 REF: 454
NAT: AACSB Analytic | Motivation Concepts TYP: F

9. Nelson is motivated by a strong need for recognition and is continually seeking credit for his contributions to the organization. According to Maslow, Neil is motivated by which category of needs?
a. Physiological
b. Safety
c. Belongingness
d. Esteem
e. Self-actualization

ANS: PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: A

10. ____ describe the most basic human physical needs, including food, water and oxygen.
a. Self-actualization needs
b. Physiological needs
c. Esteem needs
d. Belongingness needs
e. Safety needs

ANS: PTS: 1 DIF: 2 REF: 454
NAT: AACSB Analytic | Motivation Concepts TYP: F

11. Which need describes the desire to be accepted by one’s peer, have friendships, be part of a group, and be loved?
a. Self-actualization needs
b. Physiological needs
c. Esteem needs
d. Belongingness needs
e. Safety needs

ANS: PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

12. According to Maslow, the highest order needs are
a. self-actualization needs.
b. physiological needs.
c. esteem needs.
d. belongingness needs.
e. safety needs.

ANS: PTS: 1 DIF: 1 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

13. Alderfer referred to the needs for physical well being as ____ needs.
a. physiological
b. existence
c. belongingness
d. relatedness
e. growth

ANS: PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

14. Frank is primarily driven by a need to establish close social relationships with other people. Alderfer would say he is motivated by
a. growth needs.
b. existence needs.
c. relatedness needs.
d. self-actualization needs.
e. physiological needs.

ANS: PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: A

15. The frustration-regression principle is most closely related with
a. Maslow.
b. Herzberg.
c. McClelland.
d. Alderfer.
e. Adam.

ANS: PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

16. According to Herzberg, ____ is an example of a hygiene factor.
a. achievement
b. recognition
c. pay
d. responsibility
e. opportunity for growth

ANS: PTS: 1 DIF: 2 REF: 457
NAT: AACSB Analytic | Motivation Concepts TYP: F

17. Which of the following are high-level needs, according to Herzberg, and include achievement, recognition, responsibility, and opportunity for growth?
a. Hygiene factors
b. Extrinsic factors
c. Motivators
d. Dissatisfiers
e. All of these

ANS: PTS: 1 DIF: 2 REF: 457
NAT: AACSB Analytic | Motivation Concepts TYP: F

18. ____ have the greatest impact, according to Herzberg, on job satisfaction.
a. Hygiene factors
b. Reinforcers
c. Motivators
d. Dissatisfiers
e. All of these

ANS: PTS: 1 DIF: 2 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: F

19. The majority of hourly workers at Formatting Unlimited are neither satisfied nor dissatisfied. What would Herzberg recommend if your goal were to increase their level of satisfaction?
a. Increase the level of hygiene factors
b. Increase the level of motivators
c. Decrease the level of motivators
d. Decrease the level of hygiene factors
e. None of these

ANS: PTS: 1 DIF: 2 REF: 457
NAT: AACSB Analytic | Motivation Concepts TYP: A

20. The desire to form close personal relationships, avoid conflict, and establish warm friendships, describes
a. a need for affiliation.
b. a need for power.
c. a need for achievement.
d. a need for authority.
e. all of these.

ANS: PTS: 1 DIF: 1 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: F

21. A high need for ____ is associated with successful attainment of top levels in the organizational hierarchy, according to McClelland.
a. power
b. achievement
c. affiliation
d. success
e. expertise

ANS: PTS: 1 DIF: 2 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: F

22. Denise has a desire to influence others, be responsible for them, and have authority over them. It can be described as her
a. need for power.
b. need for achievement.
c. need for affiliation.
d. need for relatedness.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: A

23. Alden is a recent college graduate. He is unsure about his future. A counselor in his university’s career resources office recently told Alden that he had a high need for achievement. Based on this, what type of career should Alden pursue?
a. He should look for work as a project manager.
b. He should think about starting his own business.
c. He should look for work in “corporate America,” he is sure to climb to the top.
d. He should play the Lotto.
e. None of these.

ANS: PTS: 1 DIF: 3 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: A

24. Which of the following theories concern the thought processes that influence behavior?
a. Process
b. Reinforcement
c. Content
d. Needs
e. Maslow’s

ANS: PTS: 1 DIF: 1 REF: 459
NAT: AACSB Analytic | Motivation Concepts TYP: F

25. Theories that explain how employees select the behaviors that allow them to meet their needs are known as
a. content theories.
b. contingency theories.
c. process theories.
d. need hierarchy theories.
e. reinforcement theories.

ANS: PTS: 1 DIF: 1 REF: 459
NAT: AACSB Analytic | Motivation Concepts TYP: F

26. In goal-setting theory, ____ refers to the degree to which goals are concrete and unambiguous.
a. goal specificity
b. goal difficulty
c. goal acceptance
d. feedback
e. goal motivation

ANS: PTS: 1 DIF: 2 REF: 460
NAT: AACSB Analytic | Motivation Concepts TYP: F

27. Which term, in goal-setting theory, refers to the need to make goals highly ambitious but achievable?
a. Goal specificity
b. Goal difficulty
c. Goal acceptance
d. Feedback
e. Goal motivation

ANS: PTS: 1 DIF: 2 REF: 460
NAT: AACSB Analytic | Motivation Concepts TYP: F

28. Which of the following is an example of a process theory of motivation?
a. Need hierarchy theory
b. Equity theory
c. Two-factor theory
d. ERG theory
e. Acquired needs theory

ANS: PTS: 1 DIF: 1 REF: 460
NAT: AACSB Analytic | Motivation Concepts TYP: F

29. ____ theory deals with employee’s perception of fairness.
a. Expectancy
b. Reinforcement
c. Need hierarchy
d. Equity
e. ERG

ANS: PTS: 1 DIF: 1 REF: 460
NAT: AACSB Analytic | Motivation Concepts TYP: F

30. In goal-setting theory, ____ refers to the idea that employees have to “buy into” the goals.
a. goal specificity
b. goal difficulty
c. goal acceptance
d. feedback
e. goal motivation

ANS: PTS: 1 DIF: 2 REF: 460
NAT: AACSB Analytic | Motivation Concepts TYP: F

31. In goal-setting theory, which term refers to the need to get information to people about how well they are doing in progressing toward goal achievement?
a. goal specificity
b. goal difficulty
c. goal acceptance
d. feedback
e. goal motivation

ANS: PTS: 1 DIF: 2 REF: 460
NAT: AACSB Analytic | Motivation Concepts TYP: F

32. Kara and Simon are both middle managers at Gotcha International. Kara is dissatisfied because she knows that Simon makes more in salary even though, in Kara’s opinion, she works longer hours than he does. If Kara wishes to reduce this perceived inequity, what should she do?
a. She could reduce the number of hours she works.
b. She could increase her level of absenteeism.
c. She could ask for a raise.
d. All of these.
e. Only she could reduce the number of hours she works and she could ask for a raise.

ANS: PTS: 1 DIF: 3 REF: 461
NAT: AACSB Analytic | Motivation Concepts TYP: A

33. Which of the following is NOT a common method for reducing a perceived inequity?
a. Change inputs
b. Change outcomes
c. Distorts perception
d. Leave the job
e. Change equity

ANS: PTS: 1 DIF: 2 REF: 461
NAT: AACSB Analytic | Motivation Concepts TYP: F

34. Which of the following is based on the relationships between effort, performance, and outcomes?
a. Equity theory
b. Expectancy theory
c. Reinforcement theory
d. Two-factor theory
e. ERG theory

ANS: PTS: 1 DIF: 1 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

35. The ____ involves whether putting effort into a task will lead to high performance.
a. P -> O expectancy
b. E -> P expectancy
c. O -> V expectancy
d. A -> Z expectancy
e. V -> P expectancy

ANS: PTS: 1 DIF: 2 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

36. Tim is a manager at Chuck’s Construction. He sees little opportunity for advancement at Chuck’s Construction, regardless of how well he performs. Which of the following expectancies is low for Tim?
a. E -> P expectancy
b. O -> V expectancy
c. P -> O expectancy
d. E -> V expectancy
e. None of these

ANS: PTS: 1 DIF: 2 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: A

37. Which of the following describes the value or attraction an individual has for an outcome?
a. Motivators
b. Valence
c. O -> V expectancy
d. P -> O expectancy
e. E -> V expectancy

ANS: PTS: 1 DIF: 3 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

38. Abbi works at Railroad Ties. Her bosses continually indicate that her motivational level is low. Abbi agrees, but is unwilling to work harder until the company changes the types of reward it offers its employees. Which of the following is low for Abbi?
a. E -> P expectancy
b. O -> P expectancy
c. Valence
d. Motivators
e. O -> E indicators

ANS: PTS: 1 DIF: 3 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: A

39. Which of the following theories places an emphasis on behavior and its consequences?
a. Two-factor theory
b. Need hierarchy theory
c. Reinforcement theory
d. ERG theory
e. Equity theory

ANS: PTS: 1 DIF: 1 REF: 464
NAT: AACSB Analytic | Motivation Concepts TYP: F

40. Which of the following is the administration of a pleasant and rewarding consequence following a desired behavior?
a. Avoidance learning
b. Punishment
c. Positive reinforcement
d. Extinction
e. Suspension

ANS: PTS: 1 DIF: 1 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

41. Bruce publicly praises his employees when they have achieved their goals. Bruce hopes this will increase the likelihood of goal achievement in the future. This is an example of
a. extinction.
b. negative reinforcement.
c. avoidance learning.
d. positive reinforcement.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: A

42. The removal of an unpleasant consequence following a desired behavior is referred to as
a. avoidance learning.
b. punishment.
c. positive reinforcement.
d. extinction.
e. inefficient management.

ANS: PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

43. Which of these is sometimes called negative reinforcement?
a. Avoidance learning
b. Punishment
c. Positive reinforcement
d. Extinction
e. Neutral learning

ANS: PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

44. ____ is the imposition of unpleasant outcomes on an employee.
a. Avoidance learning
b. Punishment
c. Positive reinforcement
d. Extinction
e. Avoiding punishment

ANS: PTS: 1 DIF: 1 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

45. Which of these refers to the withdrawal of a positive reward, meaning that behavior is no longer reinforced and hence is less likely to occur in the future?
a. Avoidance learning
b. Punishment
c. Positive reinforcement
d. Extinction
e. None of these

ANS: PTS: 1 DIF: 1 REF: 466
NAT: AACSB Analytic | Motivation Concepts TYP: F

46. Which of the following techniques reduces the likelihood that behavior will be repeated?
a. Positive reinforcement
b. Negative reinforcement
c. Extinction
d. Reward enhancement
e. All of these

ANS: PTS: 1 DIF: 2 REF: 466
NAT: AACSB Analytic | Motivation Concepts TYP: F

47. One of your fellow students is continually late to class. The professor has tried numerous verbal warnings and recently took points away from the student’s grade. Based on the above, the professor’s actions are consistent with which of the following reinforcement techniques?
a. Negative reinforcement
b. Punishment
c. Positive reinforcement
d. Avoidance learning
e. Rewards enhancement

ANS: PTS: 1 DIF: 3 REF: 466
NAT: AACSB Analytic | Motivation Concepts TYP: A

48. One of your fellow team members at work is continually disrupting the team’s work with jokes and general horseplay. You hope that by ignoring him he will stop this senseless behavior. You are attempting to use which reinforcement tool?
a. Extinction
b. Positive reinforcement
c. Negative reinforcement
d. Avoidance learning
e. Desired behavior is reinforced annually

ANS: PTS: 1 DIF: 3 REF: 466
NAT: AACSB Analytic | Motivation Concepts TYP: A

49. Which of the following is the application of motivational theories to the structure of work for improving productivity and satisfaction?
a. Job design
b. Job enlargement
c. Job simplification
d. Job characteristics
e. Job enrichment

ANS: PTS: 1 DIF: 1 REF: 468
NAT: AACSB Analytic | Motivation Concepts TYP: F

50. While job ____ can lead to greater task efficiencies, it has failed as a motivational technique.
a. rotation
b. enlargement
c. simplification
d. characteristics
e. enrichment

ANS: PTS: 1 DIF: 1 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

51. Larry is looking for ways to increase the number of different tasks that an employee performs without increasing task complexity. He should try
a. job simplification.
b. job enlargement.
c. job rotation.
d. job enrichment.
e. job lay-off.

ANS: PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: A

52. ____ systematically moves employees from one job to another, thereby increasing the number of different tasks an employee performs without increasing the complexity of any one job.
a. Job simplification
b. Job rotation
c. Job enlargement
d. Job enrichment
e. None of these

ANS: PTS: 1 DIF: 1 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

53. Which of these combines a number of tasks horizontally into one, new broader job?
a. Job simplification
b. Job rotation
c. Job enrichment
d. All of these
e. None of these

ANS: PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

54. Which of the following combines a series of tasks into one new, broader job?
a. Job simplification
b. Job enlargement
c. Job rotation
d. Job characteristics
e. Job lay-off

ANS: PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

55. A job design that incorporates achievement, recognition, and other high-level motivators into the work is referred to as
a. job simplification.
b. job rotation.
c. job enlargement.
d. job enrichment.
e. none of these.

ANS: PTS: 1 DIF: 1 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

56. Karen is a first line supervisor at Wolfs, Inc. She wishes to increase her employee’s opportunities for growth and learning. Which of the following techniques should she use?
a. Job enlargement
b. Job enrichment
c. Job rotation
d. Positive reinforcement
e. Continuous

ANS: PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: A

57. ____ is an important part of the job characteristics model.
a. Critical psychological states
b. A hierarchy of needs
c. Schedules of reinforcement
d. All of these
e. None of these

ANS: PTS: 1 DIF: 2 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

58. The core dimension of Hackman and Oldham’s model of job characteristics that is based on the number of diverse activities that make up a job is known as
a. autonomy.
b. job enlargement.
c. skill variety.
d. task identity.
e. feedback.

ANS: PTS: 1 DIF: 2 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

59. Which of the following refers to the degree to which an employee performs a total job with a recognizable beginning and ending?
a. Task complexity
b. Task identity
c. Task significance
d. Task structure
e. None of these

ANS: PTS: 1 DIF: 1 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

60. The degree to which the job is perceived as important and having impact on the company or customers is referred to as
a. task complexity.
b. task identity.
c. task significance.
d. task structure.
e. task simplification.

ANS: PTS: 1 DIF: 1 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

61. ____ influences the critical psychological state of experienced meaningfulness of work.
a. Skill variety
b. Task significance
c. Task identity
d. All of these
e. Task significance and task identity only

ANS: PTS: 1 DIF: 2 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

62. Daisy tried to apply the job characteristics model to her workforce, but it only worked for some of her employees. Which of the following may be a reason why it did not work for everyone?
a. Some of her employees are lazy.
b. Some of her employees are low in growth-need strength.
c. Some of her employees have a low need for power.
d. All of her employees have high growth-needs.
e. Some of her employees have low affiliation needs.

ANS: PTS: 1 DIF: 3 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: A

63. ____ is the extent to which doing the job provides information back to the employee about his or her performance.
a. Feedback
b. Assessment
c. Evaluation
d. Satisfaction
e. Fulfillment

ANS: PTS: 1 DIF: 2 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

64. The job characteristic of feedback provides the worker with
a. employee growth-need strength.
b. experienced meaningfulness of work.
c. experienced responsibility.
d. knowledge of actual results.
e. demotivation.

ANS: PTS: 1 DIF: 2 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

65. The delegation of power and authority to subordinates is referred to as
a. need for power.
b. need for achievement.
c. empowerment.
d. passing the buck.
e. need of affiliation.

ANS: PTS: 1 DIF: 1 REF: 472
NAT: AACSB Analytic | Motivation Concepts TYP: F

66. Empowering employees means giving employees
a. information.
b. knowledge.
c. power.
d. rewards.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 472-473
NAT: AACSB Analytic | Motivation Concepts TYP: F

67. On the continuum of empowerment, what is the highest level of empowerment that requires the most complex skills?
a. Self-management
b. Suggestion programs
c. Participation groups
d. Cross-functional teams
e. Periodic briefings

ANS: PTS: 1 DIF: 2 REF: 473
NAT: AACSB Analytic | Motivation Concepts TYP: F

68. On the continuum of empowerment, employees who are self-managed
a. give input.
b. participate in decisions.
c. are responsible for decision process and strategy.
d. have no decision discretion.
e. make decisions.

ANS: PTS: 1 DIF: 2 REF: 473
NAT: AACSB Analytic | Motivation Concepts TYP: F

69. ____ is a situation in which employees enjoy their work, contribute enthusiastically to meeting goals, and feel a sense of belonging and commitment to the organization.
a. Commitment
b. Engagement
c. Employee loyalty
d. Employee assurance
e. Employee guarantee

ANS: PTS: 1 DIF: 2 REF: 473
NAT: AACSB Analytic | Motivation Concepts TYP: F

70. Sally enjoys her job as a teacher, not because of the pay or benefits, but because she feels good about shaping the minds of tomorrow’s leaders. Sally is motivated by:
a. Power factors
b. Leadership factors
c. Hygiene factors
d. Extrinsic rewards
e. Intrinsic rewards

ANS: PTS: 1 DIF: 3 REF: 452
NAT: AACSB Analytic | Motivation Concepts TYP: A

71. Which of the following theories focuses on employee learning of desired work behaviors?
a. Reinforcement theory
b. ERG theory
c. Hierarchy of needs theory
d. Experiential learning theory
e. Content theory

ANS: PTS: 1 DIF: 2 REF: 453
NAT: AACSB Analytic | Motivation Concepts TYP: F

72. Which motivation theory proposes that needs must be satisfied in sequence?
a. Reinforcement theory
b. ERG theory
c. Hierarchy of needs theory
d. Experiential learning theory
e. Social learning theory

ANS: PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

73. Highroller Casinos provides good salaries and benefits, including bonuses of up to 25 percent of annual salaries. However, the company has been criticized for not establishing an achievement or recognition program for its employees. Which of the following best describes the company in terms of the two-factor theory?
a. Good motivators, inadequate hygiene factors
b. Good hygiene factors, inadequate motivators
c. Good hygiene factors and motivators
d. Inadequate hygiene factors and motivators
e. None of the above

ANS: PTS: 1 DIF: 3 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: A

74. Samuel, a sales associate at an electronics store, learns that his base pay is higher than any other sales associate in the store. He justifies his higher salary to the idea that he must be a top sales associate, generating more revenue than anyone else. This example demonstrates which method for reducing perceived inequity?
a. Working harder, not smarter
b. Changing outcomes
c. Changing work effort
d. Changing perceptions
e. Leaving the job

ANS: PTS: 1 DIF: 2 REF: 461
NAT: AACSB Analytic | Motivation Concepts TYP: A

75. Yolanda recently learned that Sue, who works in the same position as she and has been with the company for the same amount of time, earns about ten percent more than she does. As a result, Yolanda feels that she should not work as hard, so she starts coming in late and taking more days off. This is an example of which method for reducing perceived equity?
a. Working harder, not smarter
b. Changing outcomes
c. Changing work effort
d. Changing perceptions
e. Leaving the job

ANS: PTS: 1 DIF: 3 REF: 461
NAT: AACSB Analytic | Motivation Concepts TYP: A

76. A recent study from the U.S. Department of Labor shows that the top reason that people leave their jobs is because they:
a. Don’t make enough money
b. Don’t feel appreciated
c. Don’t believe in what the organization stands for
d. Don’t like their colleagues
e. Don’t like their boss

ANS: PTS: 1 DIF: 2 REF: 463
NAT: AACSB Analytic | Motivation Concepts TYP: F

77. Jeff and Rob have a difficult time getting along at work. Most days, Jeff spends a lot of time cracking jokes and goofing off, while Rob constantly nags him and tells him to act like a grownup. On days when Jeff is more reserved, Rob does not nag him, hoping that this will result in improved behavior down the road. This is an example of which form of behavior modification?
a. Empowerment
b. Extinction
c. Punishment
d. Avoidance learning
e. Positive reinforcement

ANS: PTS: 1 DIF: 3 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: A

78. Which theory proposes that an individual’s motivation can result not just from direct experience of rewards and punishments but also from the person’s thoughts and beliefs and his or her observations of other people’s behavior?
a. Reinforcement theory
b. Hierarchy of needs theory
c. ERG theory
d. Experiential learning theory
e. Social learning theory

ANS: PTS: 1 DIF: 2 REF: 466
NAT: AACSB Analytic | Motivation Concepts TYP: F

79. _________ occurs when an individual sees others perform certain behaviors and get rewarded for them.
a. Vicarious learning
b. Self-efficacy
c. Self-reinforcement
d. Delegation
e. Experiential learning

ANS: PTS: 1 DIF: 2 REF: 466
NAT: AACSB Analytic | Motivation Concepts TYP: F

80. At Rightway Industries, new hires spend a significant portion of their first week of training just walking around the factory, observing other workers and watching them get rewarded for doing their jobs well. This is an example of:
a. Vicarious learning
b. Self-efficacy
c. Self-reinforcement
d. Delegation
e. Experiential learning

ANS: PTS: 1 DIF: 3 REF: 466
NAT: AACSB Analytic | Motivation Concepts TYP: A

81. ________ is an individual’s belief about his or her abilities to successfully accomplish a specific task or outcome.
a. Self-control
b. Self-efficacy
c. Self-reinforcement
d. Autonomy
e. Delegation

ANS: PTS: 1 DIF: 2 REF: 468
NAT: AACSB Analytic | Motivation Concepts TYP: F

82. ___________ is power sharing, or the delegation of power or authority to subordinates in an organization.
a. Engagement
b. Synergy
c. Motivation
d. Empowerment
e. Leadership

ANS: PTS: 1 DIF: 3 REF: 472
NAT: AACSB Analytic | Motivation Concepts TYP: F

83. Ricky is a manager at InfoServices, where she rewards the top sales employee every month by giving him or her a high-definition TV or PC. This is an example of what employee motivation program?
a. Pay for performance
b. Lifestyle award
c. Employee stock ownership plan
d. Flexible work schedule
e. Team-based compensation

ANS: PTS: 1 DIF: 3 REF: 472
NAT: AACSB Analytic | Motivation Concepts TYP: A

84. Carla’s subordinates view her as a great manager. Not only does she get the job done, but she organizes the workplace in such a way that employees experience a sense of meaningfulness, connection, and growth. This is an example of employee:
a. Pay-for-performance
b. Delegation
c. Empathy
d. Apathy
e. Engagement

ANS: PTS: 1 DIF: 3 REF: 474
NAT: AACSB Analytic | Motivation Concepts TYP: A

CASE

Scenario – Donovan Zorn

Donovan Zorn was a successful manager for one of the subsidiaries at Eagles Unlimited. He was responsible for 232 workers and had a span of control of eight lower level managers. Donovan has decided to try to increase performance and productivity by the careful use of motivational theories.

1. The hygiene factors, or dissatifiers, that Donovan can influence include all of the following EXCEPT
a. salary and wages.
b. supervision relationships.
c. working conditions.
d. company policies.
e. all are hygiene factors.

ANS:

PTS: 1 DIF: 2 REF: 457
NAT: AACSB Analytic | Motivation Concepts KEY: Scenario Questions
TYP: A

2. The motivator factors, or satisfiers, that Donovan can change and influence include all of the following EXCEPT
a. recognition.
b. growth opportunities.
c. achievement.
d. salary.
e. all are motivator factors.

ANS:

PTS: 1 DIF: 2 REF: 457
NAT: AACSB Analytic | Motivation Concepts KEY: Scenario Questions
TYP: A

3. One of Donovan’s best employees has a driving need to be able to attain a high standard of success, to master complex tasks, and to surpass others. Donovan recognizes these acquired needs as defined as
a. the need for accomplishment.
b. the need for power.
c. the need for affiliation.
d. the need for adaptation.
e. none of these.

ANS:

PTS: 1 DIF: 2 REF: 458
NAT: AACSB Analytic | Motivation Concepts KEY: Scenario Questions
TYP: A

4. Donovan understands that perceived inequity creates tensions within individuals that motivate them to bring equity back into balance, and one of his production supervisors feels that she is underpaid. Which of the following is not a common method for reducing perceived inequity?
a. Change in his inputs to the organization
b. Change his outcomes from the organization
c. Distort his perception
d. Leave the job for a new one
e. All are common methods

ANS:

PTS: 1 DIF: 2 REF: 461
NAT: AACSB Analytic | Motivation Concepts KEY: Scenario Questions
TYP: A

COMPLETION

1. ____________________ refers to the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action.

ANS:

PTS: 1 DIF: 2 REF: 452
NAT: AACSB Analytic | Motivation Concepts TYP: F

2. The satisfaction received in the process of performing an action is also known as a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 452
NAT: AACSB Analytic | Motivation Concepts TYP: F

3. ____________________ rewards are given by another person, typically a manager, and include promotions and pay increases.

ANS:

PTS: 1 DIF: 2 REF: 453
NAT: AACSB Analytic | Motivation Concepts TYP: F

4. ____________________ theories emphasize the needs that motivate people.

ANS:

PTS: 1 DIF: 2 REF: 453
NAT: AACSB Analytic | Motivation Concepts TYP: F

5. A content theory that proposes that people are motivated by five categories of needs-physiological, safety, belongingness, esteem, and self-actualization-that exist in a hierarchical order is called the ____________________ theory.

ANS:

PTS: 1 DIF: 2 REF: 454
NAT: AACSB Analytic | Motivation Concepts TYP: F

6. ____________________ are the most basic human physical needs, including food, water, and oxygen.

ANS:

PTS: 1 DIF: 2 REF: 454
NAT: AACSB Analytic | Motivation Concepts TYP: F

7. A modification of the needs hierarchy theory that proposes three categories of needs: existence, relatedness, and growth is called the ____________________ theory.

ANS:

PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

8. The idea that failure to meet a high-order need may cause a regression to an already satisfied lower-order need is referred to as a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

9. Factors that involve the presence or absence of job dissatisfiers, such as working conditions or pay, are known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 457
NAT: AACSB Analytic | Motivation Concepts TYP: F

10. ____________________ are high-level needs and include achievement, recognition, responsibility, and opportunity for growth.

ANS:

PTS: 1 DIF: 2 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: F

11. ____________________ theories explain how workers select behavioral actions to meet their needs and determine whether their choices were successful.

ANS:

PTS: 1 DIF: 2 REF: 459
NAT: AACSB Analytic | Motivation Concepts TYP: F

12. ____________________ theory focuses on an individual’s perceptions of how fairly he or she is treated relative to others.

ANS:

PTS: 1 DIF: 2 REF: 460
NAT: AACSB Analytic | Motivation Concepts TYP: F

13. A state of ____________________ exists whenever the ratio of one person’s outcomes to inputs equals the ratio of another’s outcomes to inputs.

ANS:

PTS: 1 DIF: 2 REF: 461
NAT: AACSB Analytic | Motivation Concepts TYP: F

14. ____________________ theory suggests that motivation depends on individuals’ expectations about their ability to perform tasks and receive desired rewards.

ANS:

PTS: 1 DIF: 2 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

15. ____________________ involves whether putting effort into a task will lead to high performance.

ANS:

PTS: 1 DIF: 2 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

16. ____________________ involves whether successful performance will lead to the desired outcome.

ANS:

PTS: 1 DIF: 2 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

17. ____________________ is the value of outcomes, or attraction for outcomes, for the individual.

ANS:

PTS: 1 DIF: 2 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

18. A motivation theory based on the relationship between a given behavior and its consequences is called the ____________________.

ANS:

PTS: 1 DIF: 2 REF: 464
NAT: AACSB Analytic | Motivation Concepts TYP: F

19. ____________________ is the name given to the set of techniques by which reinforcement theory is used to modify human behavior.

ANS:

PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

20. The assumption that positively reinforced behavior tends to be repeated is the basis for the ____________________.

ANS:

PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

21. ____________________ is defined as anything that causes a certain behavior to be repeated or inhibited.

ANS:

PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

22. ____________________ is the removal of an unpleasant consequence following a desired behavior.

ANS:

PTS: 1 DIF: 2 REF: 465
NAT: AACSB Analytic | Motivation Concepts TYP: F

23. ____________________ is the application of motivational theories to the structure of work for improving productivity and satisfaction.

ANS:

PTS: 1 DIF: 2 REF: 468
NAT: AACSB Analytic | Motivation Concepts TYP: F

24. ____________________ systematically moves employees from one job to another, thereby increasing the number of different tasks an employee performs without increasing the complexity of any one job.

ANS:

PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

25. ____________________ combines a series of tasks into one new, broader job.

ANS:

PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

26. ____________________ incorporates high-level motivators into the work, including job responsibility, recognition, and opportunities for growth, learning, and achievement.

ANS:

PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

27. ____________________ is defined as the altering of jobs to increase both the quality of employees’ work experience and their productivity.

ANS:

PTS: 1 DIF: 2 REF: 469
NAT: AACSB Analytic | Motivation Concepts TYP: F

28. ____________________ is the degree to which the worker has freedom, discretion, and self-determination in planning and carrying out tasks.

ANS:

PTS: 1 DIF: 2 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

29. ____________________ theory proposes that managers can increase motivation by setting specific, challenging goals that are accepted as valid by subordinates, then helping people track their progress toward goal achievement by providing timely feedback.

ANS:

PTS: 1 DIF: 2 REF: 459
NAT: AACSB Analytic | Motivation Concepts TYP: F

30. The delegation of power and authority to subordinates is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 472
NAT: AACSB Analytic | Motivation Concepts TYP: F

SHORT ANSWER

1. List the four content theories discussed in your text.

ANS:

PTS: 1 DIF: 2 REF: 454-458
NAT: AACSB Analytic | Motivation Concepts TYP: F

2. List the three needs proposed by Clayton Alderfer.

ANS:

PTS: 1 DIF: 2 REF: 455
NAT: AACSB Analytic | Motivation Concepts TYP: F

3. List the four types of reinforcement.

ANS:

PTS: 1 DIF: 2 REF: 465-466
NAT: AACSB Analytic | Motivation Concepts TYP: F

4. List the five core job dimensions found in the job characteristics model.

ANS:

PTS: 1 DIF: 2 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

ESSAY

1. Differentiate between intrinsic and extrinsic rewards.

ANS:
.

PTS: 1 DIF: 2 REF: 452-453
NAT: AACSB Analytic | Motivation Concepts TYP: F

2. Briefly describe Maslow’s hierarchy of needs theory.

ANS:

PTS: 1 DIF: 2 REF: 454-455
NAT: AACSB Analytic | Motivation Concepts TYP: F

3. Compare the five groups of needs in Maslow’s theory with the three groups of needs in Alderfer’s ERG theory.

ANS:

PTS: 1 DIF: 3 REF: 454-455
NAT: AACSB Analytic | Motivation Concepts TYP: F

4. In David McClelland’s acquired needs theory, what are the three acquired needs most commonly discussed and which is(are) not dependent on relationships with other people?

ANS:

PTS: 1 DIF: 2 REF: 458
NAT: AACSB Analytic | Motivation Concepts TYP: F

5. Briefly explain expectancy theory.

ANS:

PTS: 1 DIF: 2 REF: 462
NAT: AACSB Analytic | Motivation Concepts TYP: F

6. Explain employee growth-need strength and its relationship to the job characteristics model.

ANS:

PTS: 1 DIF: 2 REF: 470
NAT: AACSB Analytic | Motivation Concepts TYP: F

7. Describe the four elements that enable employees to become empowered.

ANS:

PTS: 1 DIF: 3 REF: 472-473
NAT: AACSB Analytic | Motivation Concepts TYP: F

8. Briefly describe social learning theory and its three elements.

ANS:

PTS: 1 DIF: 3 REF: 466
NAT: AACSB Analytic | Motivation Concepts TYP: F

Chapter 17—Managing Communication

TRUE/FALSE

1. Managers facilitate strategic conversations by using open communication, actively listening to others, applying the practice of dialogue, and using feedback for learning and change.

ANS: PTS: 1 DIF: 2 REF: 482
NAT: AACSB Communication | HRM TYP: F

2. Managers spend 80 percent of every working day reading or writing.

ANS: PTS: 1 DIF: 2 REF: 482
NAT: AACSB Communication | HRM TYP: F

3. Communication permeates every management function.

ANS: PTS: 1 DIF: 1 REF: 482
NAT: AACSB Communication | HRM TYP: F

4. Communication is the process by which information is transmitted from the speaker to the listener.

ANS: PTS: 1 DIF: 2 REF: 483
NAT: AACSB Communication | HRM TYP: F

5. The process by which information is exchanged and understood by two or more people is the definition of communication.

ANS: PTS: 1 DIF: 1 REF: 483
NAT: AACSB Communication | HRM TYP: F

6. The sender must encode the message and select a communication channel after developing the message.

ANS: PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

7. The process of encoding, the selection of a channel, the presence of noise, and the development of feedback are four of the factors involved in the communication process.

ANS: PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

8. Without feedback, communication is only a two-way process, sender to receiver and receiver to sender.

ANS: PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

9. Communication can break down if sender and receiver do not encode or decode language in the same way.

ANS: PTS: 1 DIF: 1 REF: 484
NAT: AACSB Communication | HRM TYP: F

10. Channel richness is the number of cues and the level of potential noise in a channel that is selected for communication.

ANS: PTS: 1 DIF: 2 REF: 486
NAT: AACSB Communication | HRM TYP: F

11. Face-to-face discussion is the richest channel, in terms of channel richness.

ANS: PTS: 1 DIF: 1 REF: 486
NAT: AACSB Communication | HRM TYP: F

12. Impersonal written media, including fliers and bulletins, are the lowest in channel richness.

ANS: PTS: 1 DIF: 2 REF: 487
NAT: AACSB Communication | HRM TYP: F

13. By selecting rich channels managers can communicate nonroutine messages effectively.

ANS: PTS: 1 DIF: 2 REF: 487
NAT: AACSB Communication | HRM TYP: F

14. Instant messaging is electronic communication that allows users to see who is connected to a network and share information instantly.

ANS: PTS: 1 DIF: 2 REF: 487
NAT: AACSB Communication | Information Technologies TYP: F

15. Routine messages typically are ambiguous, concern novel events and impose great potential for misunderstanding.

ANS: PTS: 1 DIF: 1 REF: 487
NAT: AACSB Communication | HRM TYP: F

16. Managers connect with others, to persuade and influence, primarily by using impersonal written media such as fliers and bulletins.

ANS: PTS: 1 DIF: 3 REF: 487
NAT: AACSB Communication | HRM TYP: F

17. The choice of a communication channel can convey a symbolic meaning to the receiver.

ANS: PTS: 1 DIF: 1 REF: 488
NAT: AACSB Communication | HRM TYP: F

18. An individual’s level of fear or anxiety associated with interpersonal communications is called communication apprehension.

ANS: PTS: 1 DIF: 2 REF: 488
NAT: AACSB Communication | HRM TYP: F

19. For most women, talk is primarily a means to preserve independence and negotiate and maintain status in a hierarchy.

ANS: PTS: 1 DIF: 2 REF: 489
NAT: AACSB Communication | HRM TYP: F

20. Men tend to use more submissive gestures when communicating with women such as tilting their heads while talking, lowering their eyes, or putting their hands in their laps.

ANS: PTS: 1 DIF: 2 REF: 489
NAT: AACSB Communication | HRM TYP: F

21. Forms of nonverbal communication include blushing, perspiring, glancing, crying, and laughing.

ANS: PTS: 1 DIF: 1 REF: 490
NAT: AACSB Communication | HRM TYP: F

22. The receiver usually will give more weight to behavioral actions than to verbal messages when verbal and nonverbal messages are contradictory.

ANS: PTS: 1 DIF: 2 REF: 490
NAT: AACSB Communication | HRM TYP: F

23. Formulating in your mind what you are going to say next is an important part of effective listening.

ANS: PTS: 1 DIF: 1 REF: 491
NAT: AACSB Communication | HRM TYP: F

24. Blogs, running Web logs that allow people to post opinions, ideas, and information, provide a low-cost, always-fresh real-time link between organizations and customers, employees, the media, and investors.

ANS: PTS: 1 DIF: 2 REF: 491
NAT: AACSB Communication | HRM TYP: F

25. A good listener is passive and laid back.

ANS: PTS: 1 DIF: 2 REF: 491
NAT: AACSB Communication | HRM TYP: F

26. A poor listener listens to central themes.

ANS: PTS: 1 DIF: 2 REF: 491
NAT: AACSB Communication | HRM TYP: F

27. A formal communication channel is a communication channel that flows within the chain of command.

ANS: PTS: 1 DIF: 1 REF: 493
NAT: AACSB Communication | HRM TYP: F

28. The most familiar and obvious flow of informal communication is downward communication.

ANS: PTS: 1 DIF: 2 REF: 493
NAT: AACSB Communication | HRM TYP: F

29. The topics covered in upward communication are indoctrination and implementation of goals and strategies.

ANS: PTS: 1 DIF: 1 REF: 493
NAT: AACSB Communication | HRM TYP: F

30. The major problem with downward communication is drop off, the distortion or loss of message content.

ANS: PTS: 1 DIF: 2 REF: 494
NAT: AACSB Communication | HRM TYP: F

31. An example of upward communication is performance feedback.

ANS: PTS: 1 DIF: 2 REF: 493
NAT: AACSB Communication | HRM TYP: F

32. Performance reports and suggestions for improvement are two types of upward communication.

ANS: PTS: 1 DIF: 2 REF: 495
NAT: AACSB Communication | HRM TYP: F

33. Types of information generally communicated upwards include performance reports, suggestions for improvement and performance feedback.

ANS: PTS: 1 DIF: 2 REF: 495
NAT: AACSB Communication | HRM TYP: F

34. Horizontal communication is the lateral or diagonal exchange of messages among peers or coworkers.

ANS: PTS: 1 DIF: 1 REF: 495
NAT: AACSB Communication | HRM TYP: F

35. Interdepartmental coordination refers to messages that take place among members of the same department and concern task accomplishment.

ANS: PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

36. Horizontal communication is particularly important in teaching organizations, where teams of workers are continuously solving problems and searching for new ways of doing things.

ANS: PTS: 1 DIF: 2 REF: 495
NAT: AACSB Communication | HRM TYP: F

37. Messages that are designed to share information among teams and departments that can help the organization change, grow, or improve are called change initiatives and improvements.

ANS: PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

38. Team members, in decentralized networks, must communicate through one individual to solve problems or make decisions.

ANS: PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

39. A decentralized network is a team communication structure in which team members freely communicate with one another and arrive at decisions together.

ANS: PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

40. Personal communication channels exist within the formally authorized channels and adhere to the organization’s hierarchy of authority.

ANS: PTS: 1 DIF: 1 REF: 497
NAT: AACSB Communication | HRM TYP: F

41. Grapevine is a type of personal channel used in many organizations.

ANS: PTS: 1 DIF: 1 REF: 498
NAT: AACSB Communication | HRM TYP: F

42. Acquisition and cultivation of personal relationships that cross departmental, hierarchical, and even organizational boundaries refers to personal networking.

ANS: PTS: 1 DIF: 2 REF: 497
NAT: AACSB Communication | HRM TYP: F

43. An informal, person-to-person communication network of employees that is not officially sanctioned by the organization refers to the grapevine.

ANS: PTS: 1 DIF: 2 REF: 498
NAT: AACSB Communication | HRM TYP: F

44. To improve writing skills, managers must respect the reader.

ANS: PTS: 1 DIF: 1 REF: 499
NAT: AACSB Communication | HRM TYP: F

45. Conversation is a group communication process aimed at creating a culture based on collaboration, fluidity, trust, and commitment to shared goals.

ANS: PTS: 1 DIF: 2 REF: 482
NAT: AACSB Communication | HRM TYP: F

46. When facing a crisis, prompt and thoughtful communications counter confusion and replace it with confidence in the organization’s leaders.

ANS: PTS: 1 DIF: 1 REF: 500
NAT: AACSB Communication | HRM TYP: F

47. To prevent panic during a time of crisis, managers should hide the truth from employees and stakeholders.

ANS: PTS: 1 DIF: 2 REF: 500
NAT: AACSB Communication | HRM TYP: F

48. Creating a climate of trust and openness is the most important thing managers can do to enhance organization communication.

ANS: PTS: 1 DIF: 1 REF: 501
NAT: AACSB Communication | HRM TYP: F

49. Methods for managing communication include personal networks, nonverbal communication, and multiple channels.

ANS: PTS: 1 DIF: 2 REF: 483
NAT: AACSB Communication | Group Dynamics TYP: F

50. In a low-context culture such as the United States, disagreeing with a superior is considered disrespectful and even disloyal.

ANS: PTS: 1 DIF: 2 REF: 485
NAT: AACSB Analytic | Group Dynamics TYP: F

51. Research has found that communication channels differ in their capacity to convey information.

ANS: PTS: 1 DIF: 2 REF: 486
NAT: AACSB Communication | Group Dynamics TYP: F

52. Routine messages tend to be simple and straightforward, such as conveying data or statistics.

ANS: PTS: 1 DIF: 2 REF: 487
NAT: AACSB Communication | Group Dynamics TYP: F

53. Research finds that the most effective way to persuade and influence others is by issuing directives.

ANS: PTS: 1 DIF: 2 REF: 488
NAT: AACSB Communication | Group Dynamics TYP: F

54. To inspire employees to achieve goals in today’s difficult economic environment, some male managers are shifting to a more female-oriented communication style.

ANS: PTS: 1 DIF: 2 REF: 489
NAT: AACSB Communication | Group Dynamics TYP: F

55. Verbal communication refers to the pitch, tone, and timbre of one’s voice, whereas vocal communication refers to the actual spoken words.

ANS: PTS: 1 DIF: 2 REF: 490
NAT: AACSB Communication | Group Dynamics TYP: F

56. Asking questions and paraphrasing what is said are examples of poor listening skills.

ANS: PTS: 1 DIF: 2 REF: 491
NAT: AACSB Communication | Group Dynamics TYP: F

57. Procedures and practices are downward communication topics that define the organization’s rules, regulations, benefits, and structural arrangements.

ANS: PTS: 1 DIF: 2 REF: 494
NAT: AACSB Communication | Group Dynamics TYP: F

58. The airing of grievances and complaints typically flows from top managers downward.

ANS: PTS: 1 DIF: 2 REF: 495
NAT: AACSB Communication | Group Dynamics TYP: F

59. Team communication is a form of downward communication.

ANS: PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | Group Dynamics TYP: F

60. When building a personal communication network, it is important to build it before you need it.

ANS: PTS: 1 DIF: 2 REF: 498
NAT: AACSB Communication | Group Dynamics TYP: F

61. When using written communication in the workplace, it is necessary to use technical jargon and terminology to make it seem like you know what you are talking about.

ANS: PTS: 1 DIF: 2 REF: 499
NAT: AACSB Communication | Group Dynamics TYP: F

62. The use of email continues to grow, with 21 percent growth in new users over one year from 2008 to 2009.

ANS: PTS: 1 DIF: 2 REF: 500
NAT: AACSB Communication | Group Dynamics TYP: F

63. Managers should develop and use formal communication channels in all directions.

ANS: PTS: 1 DIF: 2 REF: 502
NAT: AACSB Communication | Group Dynamics TYP: F

MULTIPLE CHOICE

1. ____ refers to dialogue across boundaries and hierarchical levels about the team or organization’s vision, critical strategic themes, and values that help achieve important goals.
a. Tactical discussion
b. Strategic conversation
c. Intentional chat
d. Calculated exchange
e. Deliberate talk

ANS: PTS: 1 DIF: 2 REF: 482
NAT: AACSB Communication | HRM TYP: F

2. A manager might use ____ as a type of communication.
a. meetings
b. telephone conversations
c. talking informally
d. all of these
e. meetings and telephone conversations

ANS: PTS: 1 DIF: 2 REF: 482
NAT: AACSB Communication | HRM TYP: F

3. What percentage of a manager’s time is spent in direct communication?
a. 20 percent
b. 100 percent
c. 50 percent
d. 80 percent
e. 40 percent

ANS: PTS: 1 DIF: 2 REF: 481
NAT: AACSB Communication | HRM TYP: F

4. What kinds of skills are fundamental necessities in every part of a manager’s job?
a. Organizational
b. Communication
c. MBWA
d. Analysis
e. Punishment

ANS: PTS: 1 DIF: 2 REF: 482
NAT: AACSB Communication | HRM TYP: F

5. Communication is defined by the text as the process by which information is
a. shared.
b. exchanged and understood by two or more people, usually with the intent to motivate or influence behavior.
c. received.
d. transmitted to others.
e. stored.

ANS: PTS: 1 DIF: 2 REF: 483
NAT: AACSB Communication | HRM TYP: F

6. What are the key elements of communication?
a. Encoding, message, and feedback
b. Encoding, noise, and symbols
c. Message, circuit, and decoding
d. Feedback, message, and perception
e. Feedback, circuit, and perception

ANS: PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

7. ____ is necessary for communication to be considered two-way.
a. Message
b. Channel
c. Feedback
d. Noise
e. Circuit

ANS: PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

8. The receiver ____ the symbols to interpret the meaning of the message.
a. encodes
b. transmits
c. decodes
d. responds to
e. must ignore

ANS: PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

9. Which of the following, in the communication process, has the responsibility to decode the symbols and interpret the meaning of the message?
a. Sender
b. Receiver
c. Channel
d. Filter
e. Middleman

ANS: PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

10. ____ and ____ are potential sources for communication errors, because knowledge, attitudes, and background act as filters.
a. Encoding, channel
b. Encoding, noise
c. Decoding, channel
d. Decoding, encoding
e. Decoding, noise

ANS: PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

11. According to MANAGER’S SHOPTALK in Chapter 17, some ways to improve communication with a non-native English speaker include all of the following EXCEPT:
a. keep your message simple
b. select your words with care
c. cover your mouth with your hand
d. speak slowly and carefully
e. fight the urge to shout

ANS: PTS: 1 DIF: 2 REF: 485
NAT: AACSB Communication | HRM TYP: F

12. ____ refers to the amount of information that can be transmitted during a communication episode.
a. Channel richness
b. Electronic mail
c. Encoding
d. Upward communication
e. Feedback

ANS: PTS: 1 DIF: 1 REF: 486
NAT: AACSB Communication | HRM TYP: F

13. Channel richness refers to the
a. number of messages a channel can carry at one time.
b. speed in which messages can be carried.
c. amount of information that can be transmitted during a communication episode.
d. number of channels available at any one time.
e. profitability potential of a proposed channel.

ANS: PTS: 1 DIF: 1 REF: 486
NAT: AACSB Communication | HRM TYP: F

14. The capacity of an information channel is influenced by all of these except
a. the ability to establish a personal focus.
b. the ability to handle multiple cues simultaneously.
c. the ability to facilitate rapid, two-way feedback.
d. the ability to minimize costs.
e. both the ability to establish a personal focus and the ability to facilitate rapid, two-way feedback.

ANS: PTS: 1 DIF: 1 REF: 486
NAT: AACSB Communication | HRM TYP: F

15. Which of these is the richest medium for communication?
a. Telephone conversations
b. Face to face contact
c. Electronic media
d. Written media
e. Voice mail

ANS: PTS: 1 DIF: 1 REF: 486
NAT: AACSB Communication | HRM TYP: F

16. ____ are examples of channels which managers might choose to use when communicating with employees.
a. Newsletter, telephone, and feedback
b. Telephone, electronic mail, and memo
c. Television, encoding, and letter
d. National newspapers and television
e. All of these

ANS: PTS: 1 DIF: 1 REF: 486
NAT: AACSB Communication | HRM TYP: F

17. Which communication channel would be most successful to inform managers of impending company-wide layoff?
a. Telephone conversations
b. Face to face contact
c. Electronic media
d. Written media
e. None of these

ANS: PTS: 1 DIF: 2 REF: 486
NAT: AACSB Communication | HRM TYP: A

18. When an electronic mail system is installed as part of the communication system, what element of the communication process is changed?
a. Channel
b. Message
c. Sender
d. Filter
e. Receiver

ANS: PTS: 1 DIF: 2 REF: 487
NAT: AACSB Communication | Information Technologies TYP: A

19. ____ does not focus on a single receiver, uses limited information cues, and does not permit feedback.
a. Bulletins
b. Telephone conversations
c. Video conference
d. Face to face contact
e. A personal memo

ANS: PTS: 1 DIF: 1 REF: 487
NAT: AACSB Communication | HRM TYP: F

20. Which of the following comprises the lowest channel richness?
a. Electronic mail
b. Bulletins
c. Face-to-face talk
d. Telephone
e. Memos

ANS: PTS: 1 DIF: 2 REF: 487
NAT: AACSB Communication | HRM TYP: F

21. ____ is(are) typically ambiguous, concern novel events, and impose great potential for misunderstanding.
a. Nonroutine messages
b. Channel richness
c. Routine messages
d. Feedback
e. Nonverbal communications

ANS: PTS: 1 DIF: 1 REF: 487
NAT: AACSB Communication | HRM TYP: F

22. When informing your staff of the date for the company picnic, a ____ would be most practical and successful.
a. Memo
b. Telephone
c. Video conference
d. Face to face contact
e. Newspaper notice

ANS: PTS: 1 DIF: 2 REF: 487
NAT: AACSB Communication | HRM TYP: F

23. The term ____ is defined as “an individual’s level of fear or anxiety associated with either real or anticipated communication.”
a. leadership trepidation
b. public consternation
c. anticipation nervousness
d. communication medium
e. communication apprehension

ANS: PTS: 1 DIF: 2 REF: 488
NAT: AACSB Communication | HRM TYP: F

24. Compared to men, women tend to
a. use verbal language to exhibit knowledge and skill.
b. stare and point more.
c. enjoy demonstrating their knowledge.
d. use their unique conversational style to show involvement.
e. value their position at center stage.

ANS: PTS: 1 DIF: 2 REF: 489
NAT: AACSB Communication | HRM TYP: F

25. An example of non-verbal communication is all of these except
a. posture.
b. facial expression.
c. voice.
d. written memo.
e. body language

ANS: PTS: 1 DIF: 2 REF: 490
NAT: AACSB Communication | HRM TYP: F

26. Non-verbal communication has the biggest impact when using ____.
a. video conference
b. telephone
c. formal letter
d. face to face communication
e. newspaper article

ANS: PTS: 1 DIF: 2 REF: 490
NAT: AACSB Communication | HRM TYP: F

27. ____ is defined as communication transmitted through actions and behaviors rather than through words.
a. Verbal communication
b. Oral communication
c. Written communication
d. Nonverbal communication
e. Electronic mail

ANS: PTS: 1 DIF: 1 REF: 490
NAT: AACSB Communication | HRM TYP: F

28. Most executives now believe that important information flows from the
a. top down.
b. bottom up.
c. diagonal level.
d. horizontal level to diagonal level.
e. internal to external.

ANS: PTS: 1 DIF: 2 REF: 490
NAT: AACSB Communication | HRM TYP: F

29. The skills of ____ require receiving messages to accurately grasp facts and feelings to interpret the meaning of the message.
a. communication
b. listening
c. managing
d. reception
e. telling

ANS: PTS: 1 DIF: 1 REF: 491
NAT: AACSB Communication | HRM TYP: F

30. Listening is ____ of effective communication.
a. 10 percent
b. 25 percent
c. 40 percent
d. 50 percent
e. 75 percent

ANS: PTS: 1 DIF: 2 REF: 491
NAT: AACSB Communication | HRM TYP: F

31. Highly successful salespeople spend ____ of a sales call letting the customer talk.
a. 15-20 percent
b. 40-50 percent
c. 60-70 percent
d. all
e. none

ANS: PTS: 1 DIF: 2 REF: 491-492
NAT: AACSB Communication | HRM TYP: F

32. Keys to effective listening include all of the following EXCEPT
a. find areas of interest.
b. listen for ideas.
c. be responsive.
d. have preconceptions.
e. all of these are keys to effective listening.

ANS: PTS: 1 DIF: 2 REF: 492
NAT: AACSB Communication | HRM TYP: F

33. Which of the following is(are) part of keys to effective listening?
a. Listen for facts
b. Listen for ideas
c. Be passive, laid back
d. Have preconceptions
e. All of these

ANS: PTS: 1 DIF: 3 REF: 492
NAT: AACSB Communication | HRM TYP: F

34. Characteristics of a good listener are someone who
a. asks questions, listens for facts, and avoids distractions.
b. asks questions, summarizes, and listens to central themes.
c. shows interest, judges content, and has preconceptions.
d. listens between lines, starts to argue, and works hard.
e. shows interest, works hard, and starts to argue.

ANS: PTS: 1 DIF: 2 REF: 492
NAT: AACSB Communication | HRM TYP: F

35. Good listeners exhibit all of the following characteristics EXCEPT
a. asking questions.
b. having preconceptions.
c. tolerates bad habits.
d. judges content, not delivery errors.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 492
NAT: AACSB Communication | HRM TYP: F

36. ____ exist(s) when organizations do not provide adequate upward, downward and horizontal communication.
a. Status and power differences
b. Differences across departments in terms of needs and goals
c. Absence of formal channels
d. Communication flow
e. Semantics

ANS: PTS: 1 DIF: 2 REF: 493
NAT: AACSB Communication | HRM TYP: F

37. Which of the following is described by the text as a communication channel that flows within the chain of command or task responsibility defined by the organization?
a. Formal communication
b. Horizontal communication
c. Downward communication
d. Upward communication
e. Diagonal communication

ANS: PTS: 1 DIF: 2 REF: 493
NAT: AACSB Communication | HRM TYP: F

38. Which of the following is the most familiar and obvious flow of formal communication?
a. Downward communication
b. Gossips
c. Horizontal communication
d. Upward communication
e. Vertical communication

ANS: PTS: 1 DIF: 1 REF: 493
NAT: AACSB Communication | HRM TYP: F

39. Downward communication is usually used to communicate information about all of the following EXCEPT
a. indoctrination.
b. procedures.
c. performance feedback.
d. suggestions for improvement.
e. implementation of goals.

ANS: PTS: 1 DIF: 2 REF: 493
NAT: AACSB Communication | HRM TYP: F

40. Information distortion or loss of message content is a major problem with
a. upward communication.
b. formal communication.
c. downward communication.
d. informal communication.
e. horizontal communication.

ANS: PTS: 1 DIF: 1 REF: 494
NAT: AACSB Communication | HRM TYP: F

41. Messages that appraise how well individuals and departments are doing their jobs are called
a. job instructions.
b. implementation of strategies.
c. practices.
d. performance feedback.
e. indoctrination.

ANS: PTS: 1 DIF: 2 REF: 494
NAT: AACSB Communication | HRM TYP: F

42. ____ refers to messages designed to motivate employees to adopt the company’s mission and cultural values and to participate in special ceremonies.
a. Job instructions
b. Implementation of strategies
c. Practices
d. Performance feedback
e. Indoctrination

ANS: PTS: 1 DIF: 2 REF: 494
NAT: AACSB Communication | HRM TYP: F

43. Many organizations use suggestion boxes, open door policies, and surveys to facilitate
a. upward communication.
b. downward communication.
c. formal communication.
d. informal communication.
e. diagonal communication.

ANS: PTS: 1 DIF: 2 REF: 495
NAT: AACSB Communication | HRM TYP: F

44. Upward communication is usually used to communicate information about all of the following EXCEPT
a. suggestions for improvement.
b. performance reports.
c. indoctrination.
d. financial and accounting information.
e. grievance and disputes.

ANS: PTS: 1 DIF: 2 REF: 495
NAT: AACSB Communication | HRM TYP: F

45. Which of these is used for solving intradepartmental problems, interdepartmental coordination, and change initiatives and improvements?
a. Downward communication
b. Horizontal communication
c. Upward communication
d. Vertical communication
e. Informal communication

ANS: PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

46. When a group of workers have routine tasks to perform, a ____ communication structure allows more time for the task to be completed.
a. linear
b. centralized
c. decentralized
d. gossip
e. team

ANS: PTS: 1 DIF: 1 REF: 497
NAT: AACSB Communication | HRM TYP: A

47. Sharon is a part of a software engineering team. Her task is to develop a diagnostic program for the medical profession. This is a very complex task. What type of communication structure would work best for her group?
a. Linear
b. Centralized
c. Decentralized
d. Focused
e. All of these

ANS: PTS: 1 DIF: 1 REF: 497
NAT: AACSB Communication | HRM TYP: A

48. ____ refers to a team communication structure in which team members freely communicate with one another and arrive at decisions.
a. Decentralized network
b. Centralized network
c. Linear network
d. Circular network
e. Gossip structure

ANS: PTS: 1 DIF: 2 REF: 497
NAT: AACSB Communication | HRM TYP: F

49. A centralized network is one in which
a. team members are free to interact with any of the team members.
b. team members communicate through one individual to make decisions.
c. team members communicate with an assigned partner.
d. team members work independently and there is no need for communication.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

50. For complex problems, a ____ network is most effective for swift, accurate problem resolution.
a. linear
b. centralized
c. decentralized
d. all of these
e. linear and centralized

ANS: PTS: 1 DIF: 2 REF: 497
NAT: AACSB Communication | HRM TYP: F

51. ____ channels are channels that exist outside the formally authorized channels without regard for the organization’s hierarchy of authority.
a. Management by wandering around
b. Upward communication
c. Personal communication
d. Horizontal communication
e. Downward communication

ANS: PTS: 1 DIF: 2 REF: 497
NAT: AACSB Communication | HRM TYP: F

52. ____ is the acquisition and cultivation of personal relationships that cross departmental, hierarchical, and even organizational boundaries.
a. Personal networking
b. The grapevine
c. Dynamic relationship
d. Network nurturing
e. Fundraising

ANS: PTS: 1 DIF: 2 REF: 497
NAT: AACSB Communication | HRM TYP: F

53. Which of the following links employees in all directions, ranging from the president through middle management, support staff, and line employees?
a. Management by wandering around
b. Vertical communication
c. Diagonal communication
d. The grapevine
e. Upward communication

ANS: PTS: 1 DIF: 2 REF: 498
NAT: AACSB Communication | HRM TYP: F

54. The grapevine is an important means of communication that exists in companies. Most of the information passed through the grapevine is
a. personal information.
b. vicious gossip.
c. business-related.
d. destructive because it is not accurate.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 498
NAT: AACSB Communication | HRM TYP: F

55. What percent of the details passed through a grapevine is accurate?
a. 15 to 20 percent
b. 25 to 35 percent
c. 40 to 60 percent
d. 70 to 90 percent
e. 100 percent

ANS: PTS: 1 DIF: 3 REF: 498
NAT: AACSB Communication | HRM TYP: F

56. According to the text, all of the following are ways managers can improve their writing skills EXCEPT:
a. Write lengthy explanations
b. Respect the reader
c. Get a second opinion
d. Know your point and get to it
e. Write clearly rather than impressively

ANS: PTS: 1 DIF: 1 REF: 499
NAT: AACSB Communication | HRM TYP: F

57. The four primary skills for communicating in a crisis include all of the following EXCEPT:
a. stay calm
b. be visible
c. get the awful truth out
d. communicate a vision for the future
e. all of these are skills for communicating in a crisis

ANS: PTS: 1 DIF: 2 REF: 500
NAT: AACSB Communication | HRM TYP: F

58. One of the most important things that a manager can do for the organization, according to the text, is to
a. talk to their employees.
b. create a climate of trust and openness.
c. listen to their employees.
d. ensure that production remains high.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 501
NAT: AACSB Communication | HRM TYP: F

59. Managers’ communication is _______-directed, in that it directs everyone’s attention toward the vision, values, and desired goals of the team or organization and influences people to act in a way to achieve the goals.
a. image
b. idea
c. purpose
d. communication
e. need

ANS: PTS: 1 DIF: 2 REF: 482
NAT: AACSB Communication | Group Dynamics TYP: F

60. Jenna composes an email from home to her boss to inform him that she will be late getting to work that day. The act of composing an email involves which stage of the communication process?
a. Selecting a channel
b. Sifting through noise
c. Providing feedback
d. Encoding the message
e. Decoding the message

ANS: PTS: 1 DIF: 3 REF: 484
NAT: AACSB Communication | Group Dynamics TYP: A

61. Selina is meeting with her subordinate Mike for his annual performance review. At the end of the review, Mike tells Selina that he is confused about some things she said. By asking Selina to explain certain things in more detail, Mike is engaging in which component of the communication process?
a. Selecting a channel
b. Sifting through noise
c. Providing feedback
d. Encoding the message
e. Decoding the message

ANS: PTS: 1 DIF: 3 REF: 484
NAT: AACSB Communication | Group Dynamics TYP: A

62. Louise, a top-level manager at INF Inc., has the difficult task of informing 12 employees that they are about to be laid off. Which communication channel should Louise use to break the news?
a. Face-to-face
b. E-mail
c. Instant messaging
d. Telephone
e. Handwritten letter

ANS: PTS: 1 DIF: 3 REF: 486
NAT: AACSB Communication | Group Dynamics TYP: A

63. Messages that convey data or statistics or simply put into words what managers already agree on and understand are referred to as:
a. Non-routine messages
b. Routine messages
c. Instant messages
d. Grapevine messages
e. Qualitative messages

ANS: PTS: 1 DIF: 2 REF: 487
NAT: AACSB Communication | Group Dynamics TYP: F

64. The learned behaviors associated with being male or female are referred to as:
a. Racial roles
b. Ethnocentrism
c. Plurality
d. Stereotypes
e. Gender roles

ANS: PTS: 1 DIF: 2 REF: 489
NAT: AACSB Communication | Group Dynamics TYP: F

65. When interviewing prospective employees, Samuel, a seasoned manager, often observes hand gestures, facial expressions, and use of space to gauge individuals’ personalities. These are all examples of:
a. Listening
b. Nonverbal communication
c. Empathizing
d. Direct communication
e. Nuance communication

ANS: PTS: 1 DIF: 3 REF: 490
NAT: AACSB Communication | Group Dynamics TYP: A

66. Jay, a divisional vice president of a consumer goods manufacturer, gives a presentation to all divisional employees to outline the company’s goals for the coming year. This is an example of what type of organizational communication?
a. Virtual communication
b. Grapevine communication
c. Lateral communication
d. Downward communication
e. Upward communication

ANS: PTS: 1 DIF: 3 REF: 493
NAT: AACSB Communication | Group Dynamics TYP: A

67. Silvia, a seasoned assembly line worker at an automobile manufacturer, wants to demonstrate to Allison, a new trainee, how her job relates to other organizational activities. This encompasses which downward communication topic?
a. Goals
b. Practices
c. Performance feedback
d. Indoctrination
e. Job instructions

ANS: PTS: 1 DIF: 3 REF: 494
NAT: AACSB Communication | Group Dynamics TYP: A

68. Will explains to his boss that his computer has a virus, and needs to be scanned and cleaned. This is an example of which topic of upward communication?
a. Problems and exceptions
b. Suggestions for improvement
c. Performance reports
d. Grievances and disputes
e. Financial and accounting information

ANS: PTS: 1 DIF: 3 REF: 495
NAT: AACSB Communication | Group Dynamics TYP: A

69. During breaks at work, Albert and Daphne talk occasionally about the problems that they are working on at work, in hopes that they can help each other out. This is an example of what type of organizational communication?
a. Virtual communication
b. Formal communication
c. Lateral communication
d. Downward communication
e. Upward communication

ANS: PTS: 1 DIF: 3 REF: 496
NAT: AACSB Communication | Group Dynamics TYP: A

70. Ron, a new associate at Barkley and Sons, is working to cultivate personal relationships with individuals outside of his department, in hopes that someday these relationships will help him succeed professionally. Ron is developing which of the following?
a. Informal channel of communication
b. Personal communication network
c. Organizational grapevine
d. Focus group
e. Career pathway team

ANS: PTS: 1 DIF: 3 REF: 497
NAT: AACSB Communication | Group Dynamics TYP: A

71. Which of the following is the best advice for written communication that is highly important?
a. Use technology channels to distribute the message
b. Use pretentious language
c. Keep it long
d. Use jargon
e. Get a second opinion

ANS: PTS: 1 DIF: 2 REF: 499
NAT: AACSB Communication | Group Dynamics TYP: F

72. To be effective communicators, managers should:
a. Focus primarily on enhancing downward communication in the organization
b. Enhance lateral communication opportunities by encouraging teams
c. Limit use of communication technology
d. Strictly push for face-to-face communication
e. Encourage the use of multiple channels of communication

ANS: PTS: 1 DIF: 2 REF: 502
NAT: AACSB Communication | Group Dynamics TYP: F

CASE

Scenario – Amy Holmes

One of the most talented managers to ever work at ABC Inc. is Amy Holmes. Combining graciousness with high intelligence and creativity, Amy has been successful in attracting and building a highly committed and competent division of employees. When interviewed by the national news media for insight into her success, one of the topics that became a primary focus was the challenge of communicating effectively.

1. In selecting the best channel for complex communication, Amy suggests to select the richest channel possible. Characteristics that Amy suggests a manager should recognize include all of these EXCEPT which one?
a. The channel’s ability to handle multiple cues simultaneously
b. The ability to facilitate rapid two-way feedback
c. The ability to establish a personal focus for the communication
d. The ability to clarify and rapidly reduce communication stereotyping
e. All of these are valid characteristics of channel richness

ANS:

PTS: 1 DIF: 2 REF: 486
NAT: AACSB Communication | HRM KEY: Scenario Questions
TYP: A

2. Amy also agrees with the research that suggests that “nonverbal messages convey thoughts and feelings with greater force than do our most carefully selected words.” Nonverbal messages include all of the following EXCEPT which one?
a. Facial expressions
b. Posture and dress
c. Voice and mannerisms
d. Blushing and perspiring
e. All of these are included.

ANS:

PTS: 1 DIF: 2 REF: 490
NAT: AACSB Communication | HRM KEY: Scenario Questions
TYP: A

3. Amy believes that successful managers solicit and respond to upward communication. Information that can be expected with upward communication includes all of the following EXCEPT which one?
a. Procedures and practices
b. Suggestions for improvement
c. Financial and accounting information
d. Performance reports
e. All of these are included

ANS:

PTS: 1 DIF: 2 REF: 495
NAT: AACSB Communication | HRM KEY: Scenario Questions
TYP: A

COMPLETION

1. ____________________ can be defined as the process by which information is exchanged and understood by two or more people, usually with the intent to motivate or influence behavior.

ANS:

PTS: 1 DIF: 2 REF: 483
NAT: AACSB Communication | HRM TYP: F

2. To ____________________ a message is to select the symbols used to compose a message.

ANS:

PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

3. The ____________________ is the tangible formulation of the idea that is sent to the receiver.

ANS:

PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

4. To translate the symbols used in a message for the purpose of interpreting its meaning is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

5. Without ____________________, the communication is one-way.

ANS

PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

6. The amount of information that can be transmitted during a communication episode is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 486
NAT: AACSB Communication | HRM TYP: F

7. ____________________ is electronic communication that allows users to see who is connected to a network and share information instantly.

ANS:

PTS: 1 DIF: 2 REF: 487
NAT: AACSB Communication | Information Technologies TYP: F

8. ____________________ messages are typically ambiguous, concern novel events, and impose great potential for misunderstanding.

ANS:

PTS: 1 DIF: 2 REF: 487
NAT: AACSB Communication | HRM TYP: F

9. ____________________ refers to messages sent through human actions and behaviors rather than through words.

ANS:

PTS: 1 DIF: 2 REF: 490
NAT: AACSB Communication | HRM TYP: F

10. ____________________ involves the skill of grasping both facts and feelings to interpret a message’s genuine meaning.

ANS:

PTS: 1 DIF: 2 REF: 491
NAT: AACSB Communication | HRM TYP: F

11. ____________________ channels are those that flow within the chain of command or task responsibility defined by the organization.

ANS:

PTS: 1 DIF: 2 REF: 493
NAT: AACSB Communication | HRM TYP: F

12. ____________________ refers to the messages and information sent from top management down to subordinates.

ANS:

PTS: 1 DIF: 2 REF: 493
NAT: AACSB Communication | HRM TYP: F

13. The major problem with downward communication is known as communication ____________________.

ANS:

PTS: 1 DIF: 2 REF: 494
NAT: AACSB Communication | HRM TYP: F

14. Formal ____________________ includes messages that flow from the lower to the higher levels in the organization’s hierarchy.

ANS:

PTS: 1 DIF: 2 REF: 495
NAT: AACSB Communication | HRM TYP: F

15. ____________________ communication is the lateral or diagonal exchange of messages among peers or coworkers.

ANS:

PTS: 1 DIF: 2 REF: 495
NAT: AACSB Communication | HRM TYP: F

16. Messages that take place among members of the same department and concern task accomplishments are called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

17. Interdepartmental messages that facilitate the accomplishment of joint projects or tasks are called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

18. Messages that are designed to share information among teams and departments that can help the organization change, grow, and improve are called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

19. A(n) ____________________ is a team communication structure in which team members communicate through a single individual to solve problems or make decisions.

ANS:

PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

20. In a(n) ____________________ network, individuals can communicate freely with other team members.

ANS:

PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

21. ____________________ channels exist outside the formally authorized channels and do not adhere to the organization’s hierarchy of authority.

ANS:

PTS: 1 DIF: 2 REF: 497
NAT: AACSB Communication | HRM TYP: F

22. The ____________________ is an informal, person-to-person communication network of employees that is not officially sanctioned by the organization.

ANS:

PTS: 1 DIF: 2 REF: 498
NAT: AACSB Communication | HRM TYP: F

23. ____________________ occurs when the receiver responds to the sender’s communication with a return message.

ANS:

PTS: 1 DIF: 2 REF: 484
NAT: AACSB Communication | HRM TYP: F

SHORT ANSWER

1. List the three formal communication channels found in organizations.

ANS:

PTS: 1 DIF: 2 REF: 493
NAT: AACSB Communication | HRM TYP: F

2. List the five types of upward communication.

ANS:

PTS: 1 DIF: 2 REF: 495
NAT: AACSB Communication | HRM TYP: F

ESSAY

1. Briefly describe the communication process.

ANS:

PTS: 1 DIF: 2 REF: 483-484
NAT: AACSB Communication | HRM TYP: F

2. Describe the concept of channel richness, specify the richest channel, and explain why it is so rich.

ANS:

PTS: 1 DIF: 3 REF: 486-487
NAT: AACSB Communication | HRM TYP: F

3. Define nonverbal communication and briefly discuss its importance to communicating in organizations.

ANS:

PTS: 1 DIF: 2 REF: 490
NAT: AACSB Communication | HRM TYP: F

4. What is downward communication and what are five topics generally included with downward communication?

ANS:

PTS: 1 DIF: 2 REF: 493
NAT: AACSB Communication | HRM TYP: F

5. Describe the three categories of horizontal communication.

ANS:

PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

6. Describe the difference between centralized networks and decentralized networks.

ANS:

PTS: 1 DIF: 2 REF: 496
NAT: AACSB Communication | HRM TYP: F

Chapter 18—Leading Teams

TRUE/FALSE

1. A team is defined as a group of two or more people who interact and coordinate their work to accomplish a specific objective.

ANS: PTS: 1 DIF: 1 REF: 510
NAT: AACSB Analytic | Group Dynamics TYP: F

2. A group and a team are interchangeable terms.

ANS: PTS: 1 DIF: 2 REF: 511
NAT: AACSB Analytic | Group Dynamics TYP: F

3. A team shares or rotates leadership roles while a group has a designated strong leader.

ANS: PTS: 1 DIF: 1 REF: 511
NAT: AACSB Analytic | Group Dynamics TYP: F

4. A free rider is a person who benefits from team membership but does not make a proportionate contribution to the team’s work.

ANS: PTS: 1 DIF: 2 REF: 512
NAT: AACSB Analytic | Group Dynamics TYP: F

5. A common dysfunction of teams is to be results oriented.

ANS: PTS: 1 DIF: 1 REF: 512
NAT: AACSB Analytic | Group Dynamics TYP: F

6. Work team effectiveness is based on two outcomes–productive output and marketplace acceptance.

ANS: PTS: 1 DIF: 2 REF: 513
NAT: AACSB Analytic | Group Dynamics TYP: F

7. Satisficing is a team’s ability to meet personal needs of its members and hence maintain their membership and commitment.

ANS: PTS: 1 DIF: 2 REF: 513
NAT: AACSB Analytic | Group Dynamics TYP: F

8. Productive output pertains to the team’s ability to meet the personal needs of its members.

ANS: PTS: 1 DIF: 1 REF: 513
NAT: AACSB Analytic | Group Dynamics TYP: F

9. A tremendous impact on team processes and effectiveness can come from the diversity of the team.

ANS: PTS: 1 DIF: 1 REF: 513
NAT: AACSB Analytic | Group Dynamics TYP: F

10. A formal team composed of employees from different areas of expertise and from different levels in the organization’s formal chain of command is called a vertical team.

ANS: PTS: 1 DIF: 2 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: F

11. A vertical team typically includes only one department in an organization.

ANS: PTS: 1 DIF: 2 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: F

12. Horizontal teams are created by the organization as part of the formal organization structure.

ANS: PTS: 1 DIF: 2 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: F

13. A task force or a crossfunctional team is a group of employees from different departments formed to deal with a specific activity and existing only until the task is completed.

ANS: PTS: 1 DIF: 1 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: F

14. A special purpose team is basically the same as a problem solving team.

ANS: PTS: 1 DIF: 1 REF: 517
NAT: AACSB Analytic | Group Dynamics TYP: F

15. Employee involvement started out simply with techniques such as information sharing with employees or asking employees for suggestions about improving the work. Gradually, companies moved toward greater autonomy for employees, which ultimately led to self-directed teams.

ANS: PTS: 1 DIF: 2 REF: 517
NAT: AACSB Analytic | Group Dynamics TYP: F

16. Self-directed teams consist of 5 to 20 multi-skilled workers who rotate jobs and produce an entire product or service.

ANS: PTS: 1 DIF: 1 REF: 517
NAT: AACSB Analytic | Group Dynamics TYP: F

17. Team members take the responsibilities of scheduling work and vacations and ordering materials in a self-directed team.

ANS: PTS: 1 DIF: 1 REF: 518
NAT: AACSB Analytic | Group Dynamics TYP: F

18. The virtual teams have resulted from globalization and advances in technology.

ANS: PTS: 1 DIF: 2 REF: 518
NAT: AACSB Analytic | Group Dynamics TYP: F

19. To be effective, virtual team leaders shape culture through action.

ANS: PTS: 1 DIF: 2 REF: 519
NAT: AACSB Analytic | Group Dynamics TYP: F

20. One of the primary advantages of virtual teams is the ability to rapidly assemble the most appropriate group of people to complete a project, solve a problem, or exploit a specific strategic opportunity.

ANS: PTS: 1 DIF: 2 REF: 519
NAT: AACSB Analytic | Group Dynamics TYP: F

21. Global teams can pose a problem for team leaders with regards to language, technology, and belief differences.

ANS: PTS: 1 DIF: 2 REF: 520
NAT: AACSB Analytic | Group Dynamics TYP: F

22. A multidomestic team is a work team made up of members of different nationalities whose activities span multiple countries.

ANS: PTS: 1 DIF: 2 REF: 520
NAT: AACSB Analytic | Group Dynamics TYP: F

23. The ideal size of work teams often is thought to be eight.

ANS: PTS: 1 DIF: 1 REF: 521
NAT: AACSB Analytic | Group Dynamics TYP: F

24. As a general rule, large teams make need satisfaction for individuals more difficult.

ANS: PTS: 1 DIF: 2 REF: 521
NAT: AACSB Analytic | Group Dynamics TYP: F

25. Research studies have confirmed that both functional diversity and gender diversity can have a positive impact on work team performance.

ANS: PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: F

26. Two common behaviors of the socioemotional role are energizing and encouraging.

ANS: PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: F

27. People who play the task specialist role often display the compromising behavior.

ANS: PTS: 1 DIF: 2 REF: 522-523
NAT: AACSB Analytic | Group Dynamics TYP: F

28. It is important for managers to remember that effective teams must have people in either task specialist and socioemotional roles.

ANS: PTS: 1 DIF: 2 REF: 523
NAT: AACSB Analytic | Group Dynamics TYP: F

29. The storming stage of team development is marked by conflict and disagreement.

ANS: PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

30. During the norming stage of team development, individual personalities emerge causing conflict and disagreements.

ANS: PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

31. The five stages of team development are forming, storming, reforming, performing, and adjourning.

ANS: PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

32. The stage of team development in which conflicts are resolved and members focus on problem solving is called reforming.

ANS: PTS: 1 DIF: 1 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

33. The leader should concentrate on managing high task performance during the performing stage of team development.

ANS: PTS: 1 DIF: 1 REF: 525
NAT: AACSB Analytic | Group Dynamics TYP: F

34. In the adjourning stage of team development, task performance is not a priority.

ANS: PTS: 1 DIF: 2 REF: 525
NAT: AACSB Analytic | Group Dynamics TYP: F

35. Individual personalities emerge during the performing stage.

ANS: PTS: 1 DIF: 2 REF: 524-525
NAT: AACSB Analytic | Group Dynamics TYP: F

36. Adjourning is the stage of team development in which members prepare for the team’s disbandment.

ANS: PTS: 1 DIF: 2 REF: 525
NAT: AACSB Analytic | Group Dynamics TYP: F

37. Diet Soda Company has teams with high cohesiveness. Additionally, the teams are normally focused on their commitment to quality performance. This combination can be expected to result in high productivity.

ANS: PTS: 1 DIF: 1 REF: 525
NAT: AACSB Analytic | Group Dynamics TYP: F

38. When a team is in moderate competition with other teams, its cohesiveness decreases as it strives to win.

ANS: PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

39. Team cohesiveness does not necessarily lead to higher team productivity.

ANS: PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

40. Making explicit statements about the desired team behaviors is a powerful way leaders influence norms.

ANS: PTS: 1 DIF: 2 REF: 527
NAT: AACSB Analytic | Group Dynamics TYP: F

41. The four common ways in which norms develop for controlling and directing behavior are critical events, primacy, carryover behaviors, and implicit statements.

ANS: PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

42. As a common way group norms develop, critical events are norms the team brings from the outside.

ANS: PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

43. As a common way group norms develop, primacy means that the first behaviors that occur in a team often set a precedent for later team expectations.

ANS: PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

44. Groupthink describes the tendency to go along with others for the sake of avoiding conflict.

ANS: PTS: 1 DIF: 2 REF: 528
NAT: AACSB Analytic | Group Dynamics TYP: F

45. Groupthink occurs when people are so committed to a cohesive team that they are reluctant to express contrary opinions.

ANS: PTS: 1 DIF: 2 REF: 528
NAT: AACSB Analytic | Group Dynamics TYP: F

46. A common cause of conflict includes scarce resources.

ANS: PTS: 1 DIF: 1 REF: 528
NAT: AACSB Analytic | Group Dynamics TYP: F

47. A competing style to handle conflict involves a high degree of assertiveness and a low degree of cooperation.

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

48. A competing style to handle conflict involves a high degree of assertiveness and a high degree of cooperation.

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

49. An avoiding style to handle conflict involves a high degree of assertiveness and a low degree of cooperation.

ANS: PTS: 1 DIF: 2 REF: 529
NAT: AACSB Analytic | Group Dynamics TYP: F

50. An avoiding style to handle conflict involves a low degree of assertiveness and a low degree of cooperation.

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

51. An accommodating style to handle conflict involves a high degree of assertiveness and a low degree of cooperation.

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

52. An accommodating style to handle conflict involves a low degree of assertiveness and a high degree of cooperation.

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

53. A dual role goal is a goal that cannot be reached by a single party.

ANS: PTS: 1 DIF: 1 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

54. A superordinate goal setting is using a third party to settle a dispute.

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

55. The process of using a third party to settle a dispute is called mediation.

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

56. Negotiation is the process of using a third party to settle a dispute.

ANS: PTS: 1 DIF: 2 REF: 531
NAT: AACSB Analytic | Group Dynamics TYP: F

57. A collaborative approach to negotiation that is based on a win-win assumption, whereby the parties want to come up with a creative solution that benefits both sides of the conflict is called integrative negotiation.

ANS: PTS: 1 DIF: 2 REF: 531
NAT: AACSB Analytic | Group Dynamics TYP: F

58. Distributive negotiation is a collaborative approach to negotiation that is based on a win-win assumption, whereby the parties want to come up with a creative solution that benefits both sides of the conflict.

ANS: PTS: 1 DIF: 2 REF: 532
NAT: AACSB Analytic | Group Dynamics TYP: F

59. A competitive and adversarial negotiation approach in which each party strives to get as much as it can, usually at the expense of the other party is called distributive negotiation.

ANS: PTS: 1 DIF: 2 REF: 532
NAT: AACSB Analytic | Group Dynamics TYP: F

60. For a win-win solution, stay focused on interests and not demands.

ANS: PTS: 1 DIF: 2 REF: 532
NAT: AACSB Analytic | Group Dynamics TYP: F

61. Social facilitation is the tendency for the presence of others to influence an individual’s motivation and performance.

ANS: PTS: 1 DIF: 2 REF: 533
NAT: AACSB Analytic | Group Dynamics TYP: F

62. In a survey of manufacturing organizations, most respondents indicated that teaming efforts where highly ineffective.

ANS: PTS: 1 DIF: 2 REF: 509
NAT: AACSB Communication | Group Dynamics TYP: F

63. Much work in teams is interdependent, which means that individuals and departments rely on other individuals and departments for information or resources to accomplish their work.

ANS: PTS: 1 DIF: 2 REF: 510
NAT: AACSB Communication | Group Dynamics TYP: F

64. Teams run efficient meetings, whereas groups run meetings that encourage open-ended discussion.

ANS: PTS: 1 DIF: 2 REF: 511
NAT: AACSB Communication | Group Dynamics TYP: F

65. Team trust dissolves when members hold one another accountable rather than relying on managers as a source of accountability.

ANS: PTS: 1 DIF: 2 REF: 512
NAT: AACSB Communication | Group Dynamics TYP: F

66. In the work team effectiveness model, team characteristics include size, diversity, and roles.

ANS: PTS: 1 DIF: 2 REF: 513
NAT: AACSB Communication | Group Dynamics TYP: F

67. In most cases, team leaders do not play a significant role in shaping team effectiveness.

ANS: PTS: 1 DIF: 2 REF: 514
NAT: AACSB Communication | Group Dynamics TYP: F

68. Committees typically are formed to deal with tasks that recur regularly.

ANS: PTS: 1 DIF: 2 REF: 517
NAT: AACSB Communication | Group Dynamics TYP: F

69. Self-directed teams are empowered with decision-making authority, allowing members to have the freedom to select new members, solve problems, spend money, monitor results, and plan for the future.

ANS: PTS: 1 DIF: 2 REF: 518
NAT: AACSB Communication | Group Dynamics TYP: F

70. One recent study suggests that in virtual teams, the higher the level of online communication, the lower the level of team cohesiveness.

ANS: PTS: 1 DIF: 2 REF: 519
NAT: AACSB Communication | Group Dynamics TYP: F

71. Although diversity contributes to higher levels of agreement in a team setting, it also results in reduced creativity.

ANS: PTS: 1 DIF: 2 REF: 522
NAT: AACSB Communication | Group Dynamics TYP: F

72. Norms begin to develop in the first interactions among members of a new team.

ANS: PTS: 1 DIF: 2 REF: 526
NAT: AACSB Communication | Group Dynamics TYP: F

73. Task conflict refers to interpersonal incompatibility that creates tension and personal animosity among people.

ANS: PTS: 1 DIF: 2 REF: 527
NAT: AACSB Communication | Group Dynamics TYP: F

74. Virtual and global teams are particularly prone to communication breakdowns.

ANS: PTS: 1 DIF: 2 REF: 529
NAT: AACSB Analytic | Group Dynamics TYP: F

75. The compromising style of conflict management reflects a high degree of cooperativeness and a low degree of assertiveness.

ANS: PTS: 1 DIF: 2 REF: 529
NAT: AACSB Communication | Group Dynamics TYP: F

76. Managers can achieve a win-win solution in negotiations by generating a single alternative and sticking to it.

ANS: PTS: 1 DIF: 2 REF: 532
NAT: AACSB Communication | Group Dynamics TYP: F

MULTIPLE CHOICE

1. Which of the following refers to a unit of two or more people who interact and coordinate their work to accomplish a specific objective?
a. An organization
b. A team
c. A committee
d. A council
e. Leadership

ANS: PTS: 1 DIF: 1 REF: 510
NAT: AACSB Analytic | Group Dynamics TYP: F

2. Which of the following is a component of a team?
a. People in a team do not have to have regular interaction
b. Four or more people are required to form a team
c. A performance goal is shared between team members
d. Teams tend to be small groups, usually with less than 10 people
e. Each member tends to set his/her own goals for the team

ANS: PTS: 1 DIF: 2 REF: 511
NAT: AACSB Analytic | Group Dynamics TYP: F

3. Which of the following does NOT pertain to teams?
a. Teams have a designated strong leader
b. Teams have individual and mutual accountability
c. Specific team vision or purpose
d. Collective work products
e. All of these pertain to teams

ANS: PTS: 1 DIF: 2 REF: 511
NAT: AACSB Analytic | Group Dynamics TYP: F

4. Randy is a team leader at Welldrilling.net. His team is made up of fifteen co-workers. Recently, he has noticed a tendency for some team members to participate much less than others. They seem uninterested and content to let others do the work. This is called
a. free riding.
b. reduced commitment.
c. power realignment.
d. the costs of coordination.
e. self-directed team.

ANS: PTS: 1 DIF: 2 REF: 512
NAT: AACSB Analytic | Group Dynamics TYP: F

5. All of the following are common dysfunctions of teams EXCEPT:
a. Lack of trust
b. Avoidance of accountability
c. Fear of conflict
d. Lack of commitment
e. Results orientation

ANS: PTS: 1 DIF: 1 REF: 512
NAT: AACSB Analytic | Group Dynamics TYP: F

6. A(n) ____ is a person who benefits from team membership but does not make a proportionate contribution to the team’s work.
a. “yes” man
b. social worker
c. work surfer
d. free rider
e. groupthink

ANS: PTS: 1 DIF: 2 REF: 512
NAT: AACSB Analytic | Group Dynamics TYP: F

7. Work team effectiveness is based on three outcomes: productive output, capacity to adapt and learn, and
a. cohesiveness.
b. satisfaction.
c. commitment.
d. leadership.
e. norms.

ANS: PTS: 1 DIF: 2 REF: 513
NAT: AACSB Analytic | Group Dynamics TYP: F

8. In the context of work team effectiveness, ____ pertains to the team’s ability to meet the personal needs of its members.
a. cohesiveness
b. satisfaction
c. commitment
d. leadership
e. norms

ANS: PTS: 1 DIF: 1 REF: 513
NAT: AACSB Analytic | Group Dynamics TYP: F

9. Common types of formal teams are
a. vertical and diagonal.
b. horizontal and diagonal.
c. vertical and horizontal.
d. horizontal and lateral.
e. lateral and diagonal.

ANS: PTS: 1 DIF: 1 REF: 515
NAT: AACSB Analytic | Group Dynamics TYP: F

10. Which of the following is a formal team composed of a manager and his or her subordinates?
a. Vertical team
b. Horizontal team
c. Self-managed team
d. Special-purpose team
e. Social team

ANS: PTS: 1 DIF: 2 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: F

11. Tamika is a manager at Sleeveless Clothes, Inc. Recently, she was assigned a work team. She is in charge of the team and it consists of the subordinates under her authority. This is an example of
a. a horizontal team.
b. a vertical team.
c. a self-managed team.
d. a special-purpose team.
e. a social team.

ANS: PTS: 1 DIF: 2 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: A

12. A functional team is also referred to as a(n):
a. command team.
b. task force.
c. special purpose team.
d. horizontal team.
e. interorganizational team.

ANS: PTS: 1 DIF: 2 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: F

13. Which of the following refers to a formal team composed of employees from about the same hierarchical level but from different areas of expertise?
a. A special-purpose team
b. A horizontal team
c. A self-managed team
d. A vertical team
e. A diagonal team

ANS: PTS: 1 DIF: 2 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: F

14. A ____ is a group of employees from different departments formed to deal with a specific activity and existing only until the task is completed.
a. Vertical team
b. Command team
c. Special purpose team
d. Task force
e. Functional group

ANS: PTS: 1 DIF: 2 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: F

15. Nancy belongs to a horizontal team in her organization. She was selected on the basis of her title, not her expertise. The type of horizontal team she belongs to is likely a(n)
a. self-managed work team.
b. task force.
c. cross-functional team.
d. committee.
e. ad-hoc committee.

ANS: PTS: 1 DIF: 3 REF: 517
NAT: AACSB Analytic | Group Dynamics TYP: A

16. A task force is sometimes called a(n):
a. vertical team.
b. cross-functional team.
c. command team.
d. special-purpose team.
e. executive team.

ANS: PTS: 1 DIF: 2 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: F

17. Which of the following teams are created outside the formal organization structure to undertake a project of special importance or creativity?
a. Vertical
b. Command
c. Special-purpose
d. Cross-functional
e. Functional

ANS: PTS: 1 DIF: 1 REF: 517
NAT: AACSB Analytic | Group Dynamics TYP: F

18. Self-directed teams are ____ teams.
a. temporary
b. permanent
c. ad-hoc
d. task force
e. none of these

ANS: PTS: 1 DIF: 2 REF: 518
NAT: AACSB Analytic | Group Dynamics TYP: F

19. Self-directed teams consist of 5 to 20 ____ workers.
a. union
b. non-union
c. multiskilled
d. low wage
e. all of these

ANS: PTS: 1 DIF: 2 REF: 517
NAT: AACSB Analytic | Group Dynamics TYP: F

20. Carolyn is a member of a work team at Creepy Clown’s Company. She and her teammates possess several different skills and are able to perform a major organizational task with little or no oversight from management. Carolyn is a member of a(n)
a. union.
b. self-directed team.
c. project team.
d. special-purpose team.
e. bureaucratic team.

ANS: PTS: 1 DIF: 3 REF: 518
NAT: AACSB Analytic | Group Dynamics TYP: A

21. Which of the following statements is true?
a. Self-managed teams are empowered with decision-making authority.
b. Self-managed teams still rely heavily on their manager.
c. Self-managed teams have little access to resources.
d. Self-managed teams will eventually develop into problem-solving teams.
e. None of these

ANS: PTS: 1 DIF: 3 REF: 518
NAT: AACSB Analytic | Group Dynamics TYP: F

22. Which of the following teams are described as a team that uses computer technology and groupware so that geographically distant members can collaborate on projects and reach common goals?
a. Functional
b. Command
c. Virtual
d. Long distance
e. Task force

ANS: PTS: 1 DIF: 1 REF: 518
NAT: AACSB Analytic | Group Dynamics TYP: F

23. Effective virtual team leaders use technology to build relationships through all of the following ways EXCEPT:
a. Bring attention to and appreciate divers skills and opinions
b. Scrutinize electronic communication patterns
c. Use technology to enhance communication and trust
d. Ensure timely responses online
e. Manage online socialization

ANS: PTS: 1 DIF: 2 REF: 519
NAT: AACSB Analytic | Group Dynamics TYP: F

24. Today, many virtual teams use ____ to facilitate regular collaboration and open information sharing.
a. hand-written messages
b. face-to-face communication
c. brainstorming
d. e-mail
e. wikis

ANS: PTS: 1 DIF: 2 REF: 518
NAT: AACSB Analytic | Group Dynamics TYP: F

25. Cross-border work teams made up of members of different nationalities whose activities span multiple countries are called
a. self-directed teams.
b. project teams.
c. multinational teams.
d. long distance teams.
e. global teams.

ANS: PTS: 1 DIF: 1 REF: 520
NAT: AACSB Analytic | Group Dynamics TYP: F

26. Members of ____ teams remain in separate locations around the world and conduct their work electronically.
a. intercultural
b. international
c. multinational
d. virtual global
e. distance

ANS: PTS: 1 DIF: 2 REF: 520
NAT: AACSB Analytic | Group Dynamics TYP: F

27. What is the ideal size of work teams?
a. Three
b. Five
c. Twelve
d. Fifteen
e. Twenty-three

ANS: PTS: 1 DIF: 1 REF: 521
NAT: AACSB Analytic | Group Dynamics TYP: F

28. Josh is a manager at On-The-Go Cars. He recently has read quite a bit of literature on the benefits of work teams. He is particularly interested in forming a vertical team. There are twenty-eight employees in his department. Josh should
a. recruit more employees for his department; twenty-eight is too small for a work team.
b. form one team of twenty-eight employees.
c. divide the group into four teams of seven employees each.
d. forget the team idea; he has too many employees and he shouldn’t divide his work group.
e. do his job and not worry about teams.

ANS: PTS: 1 DIF: 3 REF: 521
NAT: AACSB Analytic | Group Dynamics TYP: A

29. Which of the following is more common in large teams?
a. Member satisfaction
b. The development of subgroups
c. Agreement
d. Commitment
e. All of these

ANS: PTS: 1 DIF: 2 REF: 521
NAT: AACSB Analytic | Group Dynamics TYP: F

30. All of these behaviors are consistent with the role of a task specialist except
a. seek information.
b. initiation.
c. summarize.
d. compromise.
e. energize.

ANS: PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: F

31. Which of the following behaviors is NOT consistent with the socioemotional role?
a. Encourage
b. Energize
c. Harmonize
d. Compromise
e. Follow

ANS: PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: F

32. ____ is a role in which the individual provides support for team members’ emotional needs.
a. A task specialist role
b. A dual role
c. A nonparticipator role
d. A socioemotional role
e. None of these

ANS: PTS: 1 DIF: 1 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: F

33. There are two types of roles that emerge in teams. They are the ____ role and the ____ role.
a. task specialist, socioeconomic
b. generalists, socioeconomic
c. task specialist, socioemotional
d. generalists, socioemotional
e. socioemotional, socioeconomic

ANS: PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: F

34. Which of these is consistent with the role of the socioemotional role?
a. Encourage
b. Follow
c. Compromise
d. All of these
e. Both encourage and follow

ANS: PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: F

35. Sally is a member of a work team at Beauty-R-Us Corporation. She often proposes new solutions to team problems. This is an example of which task specialist role?
a. Harmonize
b. Seek information
c. Initiation
d. Reduce tension
e. Compromise

ANS: PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: A

36. Which of the following behaviors is consistent with the socioemotional role?
a. Reduce tension
b. Give opinions
c. Seek information
d. Summarize
e. Energize

ANS: PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: F

37. Amber is a member of a work team at Buchanon Dance, Inc. She often attempts to help disagreeing parties reach agreement. This is an example of which socioemotional role behavior?
a. Compromise
b. Follow
c. Reduce tension
d. Harmonize
e. Summarize

ANS: PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: A

38. Some team members are asked to play a dual role. These members
a. engage in two sets of behaviors: initiation and energize.
b. perform both role: task specialist and socioemotional.
c. perform both roles: liaison and negotiator.
d. engage in two sets of behavior: follow and compromise.
e. do not do anything.

ANS: PTS: 1 DIF: 2 REF: 523
NAT: AACSB Analytic | Group Dynamics TYP: F

39. Michael’s team has evolved to the storming stage of team development. As team leader, what should Michael be emphasizing?
a. Lots of informal interaction
b. Participation by all team members
c. Task accomplishment
d. Goal achievement
e. Disbanding team

ANS: PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: A

40. Which of the following is the first stage of team development?
a. Forming
b. Storming
c. Norming
d. Performing
e. Reforming

ANS: PTS: 1 DIF: 1 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

41. The forming stage of team development is characterized by
a. the establishment of order and cohesion.
b. cooperation.
c. problem solving.
d. orientation.
e. conflict.

ANS: PTS: 1 DIF: 2 REF: 523
NAT: AACSB Analytic | Group Dynamics TYP: F

42. During which stage of team development should the team leader help clarify team roles, norms, and values?
a. Adjourning
b. Storming
c. Forming
d. Performing
e. Norming

ANS: PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

43. Jessica has just been appointed leader of a new work team in her organization. She is wondering what to do at her first meeting with the group. Which of the following would you suggest?
a. She should waste little time; get the team focused on the task.
b. She should help the team clarify roles and responsibilities.
c. She should allow time for team members to become acquainted with one another; allow for informal social interaction.
d. She should let someone else worry about this since she is the leader.
e. She should propose to disband the team.

ANS: PTS: 1 DIF: 3 REF: 523
NAT: AACSB Analytic | Group Dynamics TYP: A

44. Which of the five stages of team development is marked by conflict and disagreement?
a. Performing
b. Norming
c. Storming
d. Forming
e. Reforming

ANS: PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

45. During the ____ stage, the team leader should encourage participation by each team member.
a. forming
b. storming
c. norming
d. adjourning
e. performing

ANS: PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

46. During which stage of team development does team unity emerge?
a. Forming
b. Storming
c. Performing
d. Norming
e. Adjourning

ANS: PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

47. Dale’s work team is beginning to resolve its conflicts and consensus is developing on such things as members’ roles. Dale’s team is in which stage of team development?
a. Norming
b. Forming
c. Storming
d. Performing
e. Reforming

ANS: PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

48. During the ____ stage of team development, the major emphasis is on task accomplishment.
a. forming
b. performing
c. achieving
d. norming
e. storming

ANS: PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

49. Kristen, in her role as team leader, has recently switched her style from one of clarifying team roles to one of emphasizing task accomplishment. Her change was driven by a desire to keep pace with her team, which has evolved from the ____ stage to the ____ stage of team development.
a. forming, storming
b. storming, performing
c. performing, adjourning
d. norming, performing
e. storming, reforming

ANS: PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: A

50. Once some teams have evolved to the ____ stage of team development, task performance is no longer the top priority.
a. performing
b. storming
c. adjourning
d. norming
e. achieving

ANS: PTS: 1 DIF: 2 REF: 525
NAT: AACSB Analytic | Group Dynamics TYP: F

51. Darren and his team have just finished Project A, and are preparing to disband. Darren and his team are in the ____ stage of team development.
a. forming
b. storming
c. norming
d. performing
e. adjourning

ANS: PTS: 1 DIF: 1 REF: 525
NAT: AACSB Analytic | Group Dynamics TYP: A

52. ____ is the extent to which team members are attracted to the team and motivated to remain in it.
a. Norming
b. Commitment
c. Caring
d. Cohesiveness
e. Leadership.

ANS: PTS: 1 DIF: 1 REF: 525
NAT: AACSB Analytic | Group Dynamics TYP: F

53. The ____ the team interacts, the ____ cohesive the team.
a. less, more
b. more, more
c. more, less
d. all of these
e. none of these

ANS: PTS: 1 DIF: 2 REF: 525
NAT: AACSB Analytic | Group Dynamics TYP: F

54. ____ increases team cohesiveness.
a. External competition
b. Shared goals
c. Team success
d. All of these
e. Shared goals and team success

ANS: PTS: 1 DIF: 2 REF: 525-526
NAT: AACSB Analytic | Group Dynamics TYP: F

55. Which of the following statements is true?
a. Morale is higher in cohesive teams.
b. Productivity is lower in cohesive teams.
c. Satisfaction is lower in cohesive teams.
d. Morale always suffers in cohesive teams.
e. Absenteeism rates are substantially higher with cohesive teams.

ANS: PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

56. Which of the following is NOT a characteristic of team structure and context influence cohesiveness?
a. Personal attraction to the team
b. Productivity expectations
c. Shared goals
d. Team interaction
e. All of these are components

ANS: PTS: 1 DIF: 2 REF: 525-526
NAT: AACSB Analytic | Group Dynamics TYP: F

57. Which of the following is a standard of conduct that is shared by team members and guides their behavior?
a. Leadership
b. Cohesiveness
c. Norm
d. Attitude
e. None of these

ANS: PTS: 1 DIF: 1 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

58. InfoTech’s new product team has a norm of backing up each of their computer’s hard drives at the end of each working day. This norm developed because one day a computer virus infected the team’s computer network and destroyed many important computer files. The cause of this norm was clearly
a. an explicit statement.
b. carryover behaviors.
c. primacy.
d. a critical event.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: A

59. ____ means that the first behaviors that occur in a team often set a precedent for later team expectations.
a. Critical events
b. Primacy
c. Carryover behaviors
d. Explicit statements
e. Recency

ANS: PTS: 1 DIF: 1 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

60. Which of the following brings norms into the team from outside?
a. Critical events
b. Primacy
c. Carryover behaviors
d. Explicit statements
e. Recency

ANS: PTS: 1 DIF: 1 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

61. Once a month, the top managers at George’s Greenhouse make a point of meeting with the work teams in their respective divisions in order to communicate to them the organization’s priorities, goals, and needs. This is an example of top management attempting to influence team norms through
a. explicit statements.
b. primacy.
c. carryover behaviors.
d. critical events.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: A

62. Managing team ____ is the most important skill required for effective team management.
a. norms
b. cohesiveness
c. conflict
d. membership
e. none of these

ANS: PTS: 1 DIF: 2 REF: 527
NAT: AACSB Analytic | Group Dynamics TYP: F

63. The tendency for people to be so committed to a cohesive team that they are reluctant to express contrary opinions refers to ____.
a. brainstorm
b. brain dump
c. group innovation
d. groupthink
e. group anxiety

ANS: PTS: 1 DIF: 2 REF: 528
NAT: AACSB Analytic | Group Dynamics TYP: F

64. The competing style of conflict resolution is based on a ____ degree of assertiveness and a ____ degree of cooperativeness.
a. high, high
b. high, low
c. low, high
d. low, low
e. low, medium

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

65. The avoiding style of conflict resolution is based on a ____ degree of assertiveness and a ____ degree of cooperativeness.
a. high, high
b. high, low
c. low, high
d. low, low
e. low, medium

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

66. The accommodating style of conflict resolution is based on a ____ degree of assertiveness and a ____ degree of cooperativeness.
a. high, high
b. high, low
c. low, high
d. low, low
e. low, medium

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

67. The ____ conflict resolution style is best when maintaining harmony is important.
a. competing style
b. collaborating style
c. accommodating style
d. avoiding style
e. comprising

ANS: PTS: 1 DIF: 2 REF: 529
NAT: AACSB Analytic | Group Dynamics TYP: F

68. The collaborating style of conflict resolution is based on a ____ degree of assertiveness and a ____ degree of cooperativeness.
a. high, high
b. high, low
c. low, high
d. low, low
e. low, medium

ANS: PTS: 1 DIF: 2 REF: 529
NAT: AACSB Analytic | Group Dynamics TYP: F

69. All the following are conflict handling styles discussed in your text EXCEPT
a. competing style.
b. assertive style.
c. avoiding style.
d. accommodating style.
e. compromising style.

ANS: PTS: 1 DIF: 1 REF: 529
NAT: AACSB Analytic | Group Dynamics TYP: F

70. ____ are goals that cannot be attained by a single party.
a. Conflict goals
b. Mission-driven goals
c. Superordinate goals
d. Competitive goals
e. Extraordinary goals

ANS: PTS: 1 DIF: 1 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

71. Herman is a team leader at CyberChasers. He usually tries to resolve conflict by referring the problem to a third party, such as his boss. This style of conflict resolution is known as
a. arbitration.
b. mediation.
c. bargaining.
d. superordinate goals.
e. negotiation.

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: A

72. Carmen’s group found itself unable to handle a conflict. The group decides to bring in an outside consultant to discuss the conflict with both sides and work toward a resolution. The group is using
a. BATNA.
b. a bargaining zone.
c. mediation.
d. integrative negotiation.
e. distributive negotiation.

ANS: PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: A

73. A competitive and adversarial negotiation approach in which each party strives to get as much as it can, usually at the expense of the other party, is called
a. BATNA.
b. a bargaining zone.
c. mediation.
d. integrative negotiation.
e. distributive negotiation.

ANS: PTS: 1 DIF: 2 REF: 532
NAT: AACSB Analytic | Group Dynamics TYP: F

74. ____ is a collaborative approach to negotiation that is based on a win-win assumption, whereby the parties want to come up with a creative solution that benefits both sides of the conflict.
a. BATNA
b. A bargaining zone
c. Mediation
d. Integrative negotiation
e. Distributive negotiation

ANS: PTS: 1 DIF: 2 REF: 531
NAT: AACSB Analytic | Group Dynamics TYP: F

75. Which of the following is NOT one of the four key strategies for achieving a win-win solution through negotiation?
a. separate the people from the problem
b. focus on interests
c. generate many alternatives for mutual gain
d. insist that results be based on objective standards
e. keep the demands at the center

ANS: PTS: 1 DIF: 2 REF: 532
NAT: AACSB Analytic | Group Dynamics TYP: F

76. ____ refers to the tendency for the presence of others to enhance one’s motivation and performance.
a. Public praise
b. Social facilitation
c. Community motivation
d. Social performance
e. Societal inspiration

ANS: PTS: 1 DIF: 2 REF: 533
NAT: AACSB Analytic | Group Dynamics TYP: F

77. According to MANAGER’S SHOPTALK in Chapter 18, techniques that will bring out the best in people and ensure a productive meeting include all of the following EXCEPT:
a. give everyone a voice
b. state the purpose
c. discourage a clash of ideas
d. stick to the purpose
e. create involvement

ANS: PTS: 1 DIF: 2 REF: 514
NAT: AACSB Analytic | Group Dynamics TYP: F

78. Team ___________ occurs when individuals and departments rely on other individuals and departments for information or resources to accomplish their work.
a. accountability
b. cohesiveness
c. control
d. interdependence
e. independence

ANS: PTS: 1 DIF: 2 REF: 510
NAT: AACSB Communication | Group Dynamics TYP: F

79. The LHX quality task force has a strong leader in Josh Clark. Josh runs efficient meetings, where he leads discussion and decision-making. In the end, tasks are delegated to members for subsequent follow-up. The LHX task force can best be characterized as a(n):
a. Club
b. Team
c. Group
d. Organization
e. None of these

ANS: PTS: 1 DIF: 3 REF: 511
NAT: AACSB Communication | Group Dynamics TYP: A

80. ________ occurs when members of a team feel comfortable disagreeing and challenging one another in the interest of finding the best solution.
a. Attention to results
b. Team trust
c. Team responsibility
d. Team cohesiveness
e. Healthy conflict

ANS: PTS: 1 DIF: 2 REF: 512
NAT: AACSB Communication | Group Dynamics TYP: F

81. Stage of development, cohesiveness, norms, and conflict resolution are all part of which component of the work team effectiveness model?
a. Work team effectiveness
b. Team processes
c. Organizational conflict
d. Team composition
e. Team characteristics

ANS: PTS: 1 DIF: 2 REF: 513
NAT: AACSB Communication | Group Dynamics TYP: F

82. Wyatt has recently been appointed by his boss to a group that has been meeting since the company he works for was founded. The purpose of this group is to make budgetary decisions on an ongoing basis. Wyatt’s group can best be defined as a:
a. Committee
b. Global team
c. Focus group
d. Virtual team
e. Self-directed team

ANS: PTS: 1 DIF: 3 REF: 517
NAT: AACSB Communication | Group Dynamics TYP: A

83. Sylvia is a member of a team that uses e-mail, instant messaging, and blogging to communicate. Although she sees members of her team on breaks and at lunch, Sylvia does not interact with them face-to-face in a professional setting. Sylvia’s team can best be described as a:
a. Project team
b. Global team
c. Focus group
d. Virtual team
e. Self-directed team

ANS: PTS: 1 DIF: 3 REF: 518
NAT: AACSB Communication | Group Dynamics TYP: A

84. Fred, a software engineer, is in charge of scrutinizing electronic communication patterns as part of his role within a virtual team at work. Fred’s role fulfills which virtual team practice?
a. Using technology to build relationships
b. Shaping culture through technology
c. Monitoring progress and rewards
d. Administering rewards
e. Using global teams to develop technology

ANS: PTS: 1 DIF: 3 REF: 519
NAT: AACSB Communication | Group Dynamics TYP: A

85. At FEI Industries, teams of product developers coordinate their work electronically at the North American, European, and Asian sites to coincide with peak operating hours at each location. Such teams are referred to as:
a. Project team
b. Committees
c. Focus groups
d. Global teams
e. Self-directed teams

ANS: PTS: 1 DIF: 3 REF: 520
NAT: AACSB Communication | Group Dynamics TYP: A

86. Shifting one’s own opinions to maintain team harmony refers to which socio-emotional role?
a. Energizing
b. Initiating ideas
c. Encouraging
d. Following
e. Compromise

ANS: PTS: 1 DIF: 2 REF: 522
NAT: AACSB Communication | Group Dynamics TYP: F

87. Andrea is team leader of the focus group at her organization. In the past, the group was plagued by lack of cooperation and disrespect. Today, she told team members that if anyone tried to undermine another member, that person would be kicked off the team. This is an example of a(n):
a. Critical event
b. Explicit statement
c. Experiential carryover
d. Implied norm
e. Accommodation

ANS: PTS: 1 DIF: 3 REF: 527
NAT: AACSB Communication | Group Dynamics TYP: A

CASE

Scenario – Malcolm Bagget

Malcolm Bagget has been working as a production employee for the last three years. His firm is currently undergoing a change in structure with a new management group and the production department is being restructured. Each production employee will be assigned to a small six-member production team. Malcolm is looking forward to the extensive cross training that has been promised and is looking forward to enjoying more power and discretion than he has had in the past. In addition to skill training, Malcolm is receiving management training in team building.

1. Malcolm has developed strong task skills and has normally taken the role of task specialist. His task specialist behaviors will include all of the following EXCEPT
a. initiating.
b. summarizing.
c. compromising.
d. energizing.
e. All of these are included as task specialist behaviors.

ANS:

PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics KEY: Scenario Questions
TYP: A

2. When Malcolm’s team encounters the establishment of order and cohesion with the leader helping to clarify team roles and values, then his team is in the developmental stage of team development of
a. forming.
b. storming.
c. norming.
d. performing.
e. adjourning.

ANS:

PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics KEY: Scenario Questions
TYP: A

3. One of Malcolm’s co-workers, Danny Newcomber, is great at reducing tension by telling jokes and in other ways drawing off emotions when the group atmosphere is tense. Additionally, Danny can be counted on to energize by stimulating the team into action when the interest drops. Danny is demonstrating which of these?
a. The task specialist role
b. The task and socioemotional role
c. The socioemotional role
d. The participator role
e. None of these

ANS:

PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics KEY: Scenario Questions
TYP: A

COMPLETION

1. A(n) ____________________ is a unit of two or more people who interact and coordinate their work to accomplish a specific goal.

ANS:

PTS: 1 DIF: 2 REF: 510
NAT: AACSB Analytic | Group Dynamics TYP: F

2. A manager can put together a(n) ____________________ of people, but never build a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 511
NAT: AACSB Analytic | Group Dynamics TYP: F

3. The term ____________________ refers to a team member who attains benefit from team membership but does not do a proportionate share of the work.

ANS:

PTS: 1 DIF: 2 REF: 512
NAT: AACSB Analytic | Group Dynamics TYP: F

4. A(n) ____________________ is a team member who attains benefits from team membership but does not actively participate in and contribute to the team’s work.

ANS:

PTS: 1 DIF: 2 REF: 512
NAT: AACSB Analytic | Group Dynamics TYP: F

5. ____________________ pertains to the team’s ability to meet the personal needs of its members.

ANS:

PTS: 1 DIF: 2 REF: 513
NAT: AACSB Analytic | Group Dynamics TYP: F

6. The quality and quantity of task outputs as defined by team goals is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 513
NAT: AACSB Analytic | Group Dynamics TYP: F

7. ____________________ are created by the organization as part of the formal organization structure.

ANS:

PTS: 1 DIF: 2 REF: 515
NAT: AACSB Analytic | Group Dynamics TYP: F

8. A(n) ____________________ is composed of a manager and his or her subordinates in the formal chain of command.

ANS:

PTS: 1 DIF: 2 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: F

9. A(n) ____________________ team is composed of employees from about the same hierarchical level but from different areas of expertise.

ANS

PTS: 1 DIF: 2 REF: 516
NAT: AACSB Analytic | Group Dynamics TYP: F

10. A long-lasting, sometimes permanent team in the organization structure created to deal with tasks that recur regularly is called a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 517
NAT: AACSB Analytic | Group Dynamics TYP: F

11. A team created outside the formal organization to undertake a project of special importance or creativity is known as a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 517
NAT: AACSB Analytic | Group Dynamics TYP: F

12. ____________________ teams typically consist of 5 to 20 multiskilled workers who rotate jobs to produce an entire product or service or at least one complete aspect or portion of a product or service.

ANS:

PTS: 1 DIF: 2 REF: 517
NAT: AACSB Analytic | Group Dynamics TYP: F

13. In a(n) ____________________ team, team members take over managerial duties.

ANS:

PTS: 1 DIF: 2 REF: 518
NAT: AACSB Analytic | Group Dynamics TYP: F

14. A(n) ____________________ team uses computer technology and groupware so that geographically distant members can collaborate on projects and reach common goals.

ANS:

PTS: 1 DIF: 2 REF: 518
NAT: AACSB Analytic | Group Dynamics TYP: F

15. ____________________ can present enormous challenges for team leaders, who have to bridge gaps of time, distance, and culture.

ANS:

PTS: 1 DIF: 2 REF: 520
NAT: AACSB Analytic | Group Dynamics TYP: F

16. The ideal size of work teams is often thought to be ____________________.

ANS:

PTS: 1 DIF: 2 REF: 521
NAT: AACSB Analytic | Group Dynamics TYP: F

17. A role in which the individual devotes personal time and energy to helping the team accomplish its task is called a(n) ____________________ role.

ANS:

PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: F

18. A role in which the individual provides support for team members’ emotional needs and social unity is called a(n) ____________________ role.

ANS:

PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: F

19. The ____________________ stage of development is a period of orientation and getting acquainted.

ANS:

PTS: 1 DIF: 2 REF: 523
NAT: AACSB Analytic | Group Dynamics TYP: F

20. During the ____________________ stage of team development, individual personalities emerge. People become more assertive in clarifying their roles and what is expected of them.

ANS:

PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

21. During the ____________________ stage of team development, conflict is resolved, and team harmony and unity emerge.

ANS:

PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

22. During the ____________________ stage of team development, the major emphasis is on problem solving and accomplishing the assigned task.

ANS:

PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

23. ____________________ is the stage of team development in which members prepare for the team’s disbandment.

ANS:

PTS: 1 DIF: 2 REF: 525
NAT: AACSB Analytic | Group Dynamics TYP: F

24. ____________________, ____________________, and ____________________ are the three characteristics of team structure and context influence cohesiveness.

ANS:

PTS: 1 DIF: 2 REF: 525
NAT: AACSB Analytic | Group Dynamics TYP: F

25. A(n) ____________________ is a standard of conduct that is shared by team members and guides their behavior.

ANS:

PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

26. As one of the four common ways in which norms develop in teams, ____________________ come from a team’s history and establish important precedents.

ANS:

PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

27. As one of the four common ways in which norms develop in teams, ____________________ means that the first behaviors that occur in a team often set a precedent for later team expectations.

ANS:

PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

28. As one of the four common ways in which norms develop in teams, ____________________ bring norms into the team from the outside.

ANS:

PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

29. As one of the four common ways in which norms develop in teams, ____________________ are used by leaders or team members to initiate norms by articulating them to the team.

ANS:

PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

30. ____________________ is defined as the extent to which members are attracted to the team and motivated to remain in it.

ANS:

PTS: 1 DIF: 2 REF: 525
NAT: AACSB Analytic | Group Dynamics TYP: F

31. The antagonistic interaction in which one party attempts to thwart the intentions or goals of another is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 527
NAT: AACSB Analytic | Group Dynamics TYP: F

32. The ____________________ style to handle conflict involves a high degree of assertiveness and a low degree of cooperation.

ANS:

PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

33. The ____________________ style to handle conflict involves a high degree of assertiveness and a high degree of cooperation.

ANS:

PTS: 1 DIF: 2 REF: 529
NAT: AACSB Analytic | Group Dynamics TYP: F

34. The ____________________ style to handle conflict involves a low degree of assertiveness and a high degree of cooperation.

ANS:

PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

35. The ____________________ style to handle conflict involves a low degree of assertiveness and a low degree of cooperation.

ANS:

PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

36. The ____________________ style to handle conflict involves a moderate degree of assertiveness and a moderate degree of cooperation.

ANS:

PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

37. A goal that cannot be reached by a single party is called a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

38. The process of using a third party to settle a dispute is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 530
NAT: AACSB Analytic | Group Dynamics TYP: F

39. ____________________ negotiation is a collaborative approach to negotiation that is based on a win-win assumption, whereby the parties want to come up with a creative solution that benefits both sides of the conflict.

ANS

PTS: 1 DIF: 2 REF: 531
NAT: AACSB Analytic | Group Dynamics TYP: F

40. ____________________ negotiation is a competitive and adversarial negotiation approach in which each party strives to get as much as it can, usually at the expense of the other party.

ANS:

PTS: 1 DIF: 2 REF: 532
NAT: AACSB Analytic | Group Dynamics TYP: F

41. ____________________ refers to the tendency for the presence of others to enhance an individual’s motivation and performance.

ANS:

PTS: 1 DIF: 2 REF: 533
NAT: AACSB Analytic | Group Dynamics TYP: F

SHORT ANSWER

1. List the five behaviors associated with the task specialist role.

ANS:

PTS: 1 DIF: 2 REF: 522
NAT: AACSB Analytic | Group Dynamics TYP: F

2. List the five stages of team development.

ANS:

PTS: 1 DIF: 2 REF: 524
NAT: AACSB Analytic | Group Dynamics TYP: F

3. List the four ways team norms develop.

ANS:

PTS: 1 DIF: 2 REF: 526
NAT: AACSB Analytic | Group Dynamics TYP: F

4. According to your text, list three factors that can cause people to engage in conflict.

ANS:
.

PTS: 1 DIF: 2 REF: 528
NAT: AACSB Analytic | Group Dynamics TYP: F

ESSAY

1. What are the three key components of the author’s definition of a team?

ANS:

PTS: 1 DIF: 1 REF: 510-511
NAT: AACSB Analytic | Group Dynamics TYP: F

2. Discuss the differences between groups and teams.

ANS:

PTS: 1 DIF: 2 REF: 511
NAT: AACSB Analytic | Group Dynamics TYP: F

3. Describe the three types of formal teams.

ANS:
.

PTS: 1 DIF: 2 REF: 515-517
NAT: AACSB Analytic | Group Dynamics TYP: F

4. What are self-directed teams? Briefly discuss three characteristics or elements of self-directed teams.

ANS:

PTS: 1 DIF: 3 REF: 517-518
NAT: AACSB Analytic | Group Dynamics TYP: F

5. Describe the stages of team development.

ANS:

PTS: 1 DIF: 2 REF: 523-525
NAT: AACSB Analytic | Group Dynamics TYP: F

6. Discuss the determinants of team cohesiveness and its consequences.

ANS:

PTS: 1 DIF: 2 REF: 525-526
NAT: AACSB Analytic | Group Dynamics TYP: F

7. Briefly discuss the various styles that can be used to handle conflict.

ANS:

PTS: 1 DIF: 3 REF: 529
NAT: AACSB Analytic | Group Dynamics TYP: F

8. Discuss the differences between distributive and integrative negotiation. Describe the steps for achieving a win-win solution with integrative negotiation.

ANS:

PTS: 1 DIF: 2 REF: 531-532
NAT: AACSB Analytic | Group Dynamics TYP: F
Chapter 19—Managing Quality and Performance

TRUE/FALSE

1. The systematic process of regulating organizational activities to make them consistent with the expectations in plans, targets, and standards of performance refers to organizational control.

ANS: PTS: 1 DIF: 1 REF: 542
NAT: AACSB Analytic | Operations Management TYP: F

2. Effectively controlling an organization requires information about product standards and actual products, as well as actions to correct any deviations from the standards.

ANS: PTS: 1 DIF: 2 REF: 542
NAT: AACSB Analytic | Operations Management TYP: F

3. It is important to create a written Internet policy for an “acceptable use policy” for workplace Internet use.

ANS: PTS: 1 DIF: 1 REF: 543
NAT: AACSB Analytic | Operations Management TYP: F

4. Customer service, external business processes, financial performances, and the organization’s capacity for learning and growth are the four major perspectives of the balanced scorecard.

ANS: PTS: 1 DIF: 2 REF: 544
NAT: AACSB Analytic | Operations Management TYP: F

5. The feedback control model is a comprehensive management control system that balances traditional financial measures with measures of customer service, internal business processes, and the organization’s capacity for learning and growth.

ANS: PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

6. Feedback control focuses on the quantity of an end product or service.

ANS: PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

7. Managers focus on the various elements of the scorecard to set targets, evaluate performance, and guide discussion about what further actions need to be taken.

ANS: PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

8. A standard for performance is included in an organization’s overall strategic plan to compare organizational activities against.

ANS: PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

9. The final step of the feedback control model is to do nothing if performance is adequate or to take corrective action if performance is inadequate.

ANS: PTS: 1 DIF: 1 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

10. In most companies, managers rely exclusively on qualitative measures to measure actual performance.

ANS: PTS: 1 DIF: 2 REF: 547
NAT: AACSB Analytic | Operations Management TYP: F

11. The fourth step in the control process is comparing actual activities to performance standards.

ANS: PTS: 1 DIF: 2 REF: 547
NAT: AACSB Analytic | Operations Management TYP: F

12. Effective management control involves subjective judgment and employee discussions, as well as objective analysis of performance data.

ANS: PTS: 1 DIF: 2 REF: 547
NAT: AACSB Analytic | Operations Management TYP: F

13. A responsibility center is the fundamental unit of analysis for a budget control system.

ANS: PTS: 1 DIF: 1 REF: 548
NAT: AACSB Analytic | Operations Management TYP: F

14. An expense budget lists forecasted and actual revenues of the organization.

ANS: PTS: 1 DIF: 1 REF: 548
NAT: AACSB Analytic | Operations Management TYP: F

15. The level of funds flowing through the organization and the nature of cash disbursements is shown through the capital budget.

ANS: PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management TYP: F

16. A balance sheet budget is a budget that plans and reports investments in major assets to be depreciated over several years.

ANS: PTS: 1 DIF: 2 REF: 550
NAT: AACSB Analytic | Operations Management TYP: F

17. Bottom-up budgeting is a process in which lower level managers anticipate their department’s resource needs and pass them up to top management for approval.

ANS: PTS: 1 DIF: 1 REF: 549
NAT: AACSB Analytic | Operations Management TYP: F

18. A process in which lower level managers anticipate their department’s resource needs and pass them to top management for approval is called top-down budgeting.

ANS: PTS: 1 DIF: 1 REF: 549
NAT: AACSB Analytic | Operations Management TYP: F

19. The balance sheet shows the firm’s financial position with respect to expenses and credits at a specific point in time.

ANS: PTS: 1 DIF: 2 REF: 550
NAT: AACSB Analytic | Operations Management TYP: F

20. Liabilities are the firm’s debts, both current and long-term.

ANS: PTS: 1 DIF: 1 REF: 550
NAT: AACSB Analytic | Operations Management TYP: F

21. The income statement shows revenues coming into the organization from all sources and subtracts all expenses.

ANS: PTS: 1 DIF: 1 REF: 550
NAT: AACSB Analytic | Operations Management TYP: F

22. Frequently calculated ratios typically pertain to activity, passivity, and profitability.

ANS: PTS: 1 DIF: 2 REF: 551
NAT: AACSB Analytic | Operations Management TYP: F

23. The liquidity ratio shows the company’s ability to meet its current debt obligations and a measurement of the firm’s margin of safety.

ANS: PTS: 1 DIF: 2 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

24. An activity ratio that measures how many times the inventory is turned over to meet the total sales figure is called the inventory turnover.

ANS: PTS: 1 DIF: 2 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

25. The return on total assets (ROA) is an activity ratio that is the percentage returned to investors on total assets.

ANS: PTS: 1 DIF: 1 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

26. Under hierarchical control, employees are actively engaged and committed to their work.

ANS: PTS: 1 DIF: 2 REF: 553
NAT: AACSB Analytic | Operations Management TYP: F

27. The use of cultural values, traditions, shared beliefs and trust to increase compliance with goals refers to decentralized control.

ANS: PTS: 1 DIF: 2 REF: 554
NAT: AACSB Analytic | Operations Management TYP: F

28. Open-book management ties employee rewards to the company’s overall success.

ANS: PTS: 1 DIF: 2 REF: 555
NAT: AACSB Analytic | Operations Management TYP: F

29. The goal of open-book management is to get every employee thinking and acting like a business owner.

ANS: PTS: 1 DIF: 2 REF: 555
NAT: AACSB Analytic | Operations Management TYP: F

30. Closed-book management helps employees appreciate why efficiency is important to the organization’s success as well as their own.

ANS: PTS: 1 DIF: 2 REF: 555
NAT: AACSB Analytic | Operations Management TYP: F

31. An organization-wide commitment to infusing quality into every activity through continuous improvement defines six sigma.

ANS: PTS: 1 DIF: 2 REF: 557
NAT: AACSB Analytic | Operations Management TYP: F

32. A group of six to twelve volunteer employees who meet regularly to discuss and solve problems affecting their common work activities refers to a quality team.

ANS: PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

33. The implementation of total quality management involves the use of many techniques such as quality circles, benchmarking, Six Sigma principles, reduced cycle time, and continuous improvement.

ANS: PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

34. Finland has the highest 2007-2008 opacity score.

ANS: PTS: 1 DIF: 3 REF: 555
NAT: AACSB Analytic | Operations Management TYP: F

35. Benchmarking is the age-old practice of allowing the artisan to sign his name to the finished product.

ANS: PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

36. Outsourcing is the continuous process of measuring products, services, and practices against the toughest competitors or the industry leaders.

ANS: PTS: 1 DIF: 1 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

37. Reduced cycle time is one of the common techniques of TQM, and refers to the ability of TQM to shorten the time required to receive inventory after placing an order for it.

ANS: PTS: 1 DIF: 2 REF: 559
NAT: AACSB Analytic | Operations Management TYP: F

38. Continuous improvement is the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis.

ANS: PTS: 1 DIF: 1 REF: 560
NAT: AACSB Analytic | Operations Management TYP: F

39. Six Sigma is most beneficial when employees have challenging jobs.

ANS: PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

40. Very high expectations from senior management and a desire to share authority by middle managers are two of the positive factors leading to success of TQM.

ANS: PTS: 1 DIF: 2 REF: 560
NAT: AACSB Analytic | Operations Management TYP: F

41. The certification based on a set of international standards for quality management, setting uniform guidelines for processes to ensure that products conform to customer requirements is the ISO certification.

ANS: PTS: 1 DIF: 2 REF: 561
NAT: AACSB Analytic | Operations Management TYP: F

42. An economic value added system identifies various activities needed to provide a product and determines the cost of each of those activities.

ANS: PTS: 1 DIF: 1 REF: 562
NAT: AACSB Analytic | Operations Management TYP: F

43. Market value-added systems measure the stock market’s estimate of the value of the company’s past and projected capital investment projects.

ANS: PTS: 1 DIF: 2 REF: 562
NAT: AACSB Analytic | Operations Management TYP: F

44. ABC is a control system that identifies the various activities needed to provide a product and allocates costs accordingly.

ANS: PTS: 1 DIF: 2 REF: 562
NAT: AACSB Analytic | Operations Management TYP: F

45. The system of governing an organization so that the interests of corporate owners are protected refers to corporate governance.

ANS: PTS: 1 DIF: 2 REF: 562
NAT: AACSB Analytic | Operations Management TYP: F

46. Although work processes can be controlled and regulated, it is impossible to control and regulate employee behavior.

ANS: PTS: 1 DIF: 2 REF: 542
NAT: AACSB Analytic | Creation of Value TYP: F

47. Managers are increasingly recognizing the need to measure intangible aspects of performance such as customer service.

ANS: PTS: 1 DIF: 2 REF: 544
NAT: AACSB Analytic | Creation of Value TYP: F

48. The Six Sigma approach is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company’s critical success factors.

ANS: PTS: 1 DIF: 2 REF: 544
NAT: AACSB Analytic | Creation of Value TYP: F

49. Within the balanced scorecard, customer service indicators measure things such as employee retention and satisfaction.

ANS: PTS: 1 DIF: 2 REF: 544
NAT: AACSB Analytic | Creation of Value TYP: F

50. Tracking measures such as customer service and employee involvement are examples of identifying and defining nonfinancial measurements.

ANS: PTS: 1 DIF: 2 REF: 547
NAT: AACSB Analytic | Creation of Value TYP: F

51. An expense budget lists forecasted and actual revenues of the organization.

ANS: PTS: 1 DIF: 2 REF: 548
NAT: AACSB Analytic | Creation of Value TYP: F

52. The capital budget lists planned investments in major assets such as buildings, heavy machinery, or complex information technology systems.

ANS: PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Creation of Value TYP: F

53. On a balance sheet, the bottom line indicates the net income – profit and loss – for the given time period.

ANS: PTS: 1 DIF: 2 REF: 550
NAT: AACSB Analytic | Creation of Value TYP: F

54. Ratios are stated as fractions rather than proportions.

ANS: PTS: 1 DIF: 2 REF: 551
NAT: AACSB Analytic | Creation of Value TYP: F

55. Companies today are increasingly shifting from a hierarchical control process to one that is more decentralized.

ANS: PTS: 1 DIF: 2 REF: 553
NAT: AACSB Analytic | Creation of Value TYP: F

56. Decentralized control techniques can improve a company’s bottom line by reducing employee misconduct, such as employee theft.

ANS: PTS: 1 DIF: 2 REF: 553
NAT: AACSB Analytic | Creation of Value TYP: F

57. With hierarchical control, power is dispersed and is based on knowledge and experience as much as position.

ANS: PTS: 1 DIF: 2 REF: 554
NAT: AACSB Analytic | Creation of Value TYP: F

58. TQM became attractive to U.S. managers in the 1980s after it had been successfully implemented by Japanese companies which were gaining market share and an international reputation for high quality.

ANS: PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Creation of Value TYP: F

59. A Six Sigma process will typically result in one defective package of product for every three truckloads shipped.

ANS: PTS: 1 DIF: 2 REF: 559
NAT: AACSB Analytic | Creation of Value TYP: F

60. TQM tends to be most successful when it enriches jobs and improves employee motivation.

ANS: PTS: 1 DIF: 2 REF: 561
NAT: AACSB Analytic | Creation of Value TYP: F

MULTIPLE CHOICE

1. Which of the following is the systematic process through which managers regulate organizational activities?
a. Strategic planning
b. Organizational control
c. Organizational goal setting
d. Strategic regulation
e. Organizational leading

ANS: PTS: 1 DIF: 1 REF: 542
NAT: AACSB Analytic | Operations Management TYP: F

2. One area in which many managers are implementing stronger controls is
a. employee use of e-mail and Internet.
b. employee breaks.
c. office socialization.
d. employee conflict
e. promptness.

ANS: PTS: 1 DIF: 2 REF: 543
NAT: AACSB Analytic | Operations Management TYP: F

3. According to MANAGER’S SHOPTALK in Chapter 19, guidelines for creating an effective but fair “acceptable use policy” for workplace Internet use includes all of the following EXCEPT:
a. make sure employees understand that they have no legal right to privacy in the workplace
b. create a written Internet policy
c. describe the disciplinary process
d. review the policy at regular intervals
e. all of these are included in the guidelines

ANS: PTS: 1 DIF: 2 REF: 543
NAT: AACSB Analytic | Operations Management TYP: F

4. Which of the following is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company’s critical success factors?
a. Economic value-added system
b. Activity-based costing system
c. Market value-added system
d. Balanced scorecard
e. Open-book management system

ANS: PTS: 1 DIF: 2 REF: 544
NAT: AACSB Analytic | Operations Management TYP: F

5. ____ indicators focus on production and operating statistics.
a. Financial performance
b. Business process
c. Critical success
d. Potential for learning and growth
e. Performance measurement

ANS: PTS: 1 DIF: 2 REF: 544
NAT: AACSB Analytic | Operations Management TYP: F

6. All well-designed control systems involve the use of ____ to determine whether performance meets established standards.
a. opinions
b. advice
c. consultants
d. benchmarks
e. feedback

ANS: PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

7. All of the following are major perspectives of the Balanced Scorecard EXCEPT:
a. Competitors
b. Customers
c. Learning and growth
d. Financial
e. Internal business processes

ANS: PTS: 1 DIF: 2 REF: 544
NAT: AACSB Analytic | Operations Management TYP: F

8. What is the first step in the feedback control system?
a. Establishing strategic objectives
b. Establishing standards of performance
c. Taking corrective action
d. Comparing performance to standard
e. Measuring previous performance

ANS: PTS: 1 DIF: 1 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

9. CyberChasers Corporation sends a post-purchase questionnaire to all consumers who buy their products. They are interested in gathering data on product quality, customer service orientation, and customer satisfaction. This is an example of
a. a concurrent control.
b. a feedback control.
c. a feedforward control.
d. preliminary control.
e. preventive control.

ANS: PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: A

10. Kendra is a manager at George’s Goodies. On a regular basis Kendra and her subordinates set individual and organizational goals. This process is similar to which component of the control model?
a. Taking corrective action when necessary
b. An information system
c. Establishing performance standards
d. Engaging strategic analysis
e. None of these

ANS: PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

11. According to the control model, after establishing standards of performance the manager should
a. compare performance to standards.
b. get the standards approved by the supervisors and subordinates.
c. measure actual performance.
d. take corrective action.
e. provide feedback.

ANS: PTS: 1 DIF: 1 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

12. Tiffany recently discovered that the reject rate for her department has exceeded the standard for performance in this area. What should Tiffany do to exercise effective control?
a. She should order more training for her workforce.
b. She should contact the maintenance department and have them come fix her machinery.
c. She should suspend the poorer workers in her department.
d. She should investigate and discover the cause of the problem.
e. None of these

ANS: PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: A

13. Zachary, a manager at ExecuComp, receives quarterly reports, which track his department’s production statistics. However, these reports lack key information regarding reject rates. Which of the following components of the control model need improvement?
a. Measuring actual performance
b. The planning and setting of performance standards
c. SWOT analysis
d. The ability to take corrective action when necessary
e. All of these

ANS: PTS: 1 DIF: 2 REF: 547
NAT: AACSB Analytic | Operations Management TYP: A

14. All of the following are key steps of setting up feedback control systems EXCEPT
a. comparing performance to standards.
b. establishing standards.
c. getting employee opinions.
d. measuring performance.
e. making necessary corrections.

ANS: PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

15. Mistletoe Corporation has a detailed set of organizational goals and management information system that delivers timely and accurate information. Mistletoe still has control problems, however, because its managers refuse to act on the information they receive. Mistletoe’s control process has flaws in which of the following areas?
a. Its performance standards
b. Its management information systems
c. Its ability to take corrective action when necessary
d. Its measurement systems
e. None of these

ANS: PTS: 1 DIF: 2 REF: 548
NAT: AACSB Analytic | Operations Management TYP: A

16. Your department has absenteeism standards, a way to measure absenteeism, and, based on your investigation, you have concluded that your department has an excessive absenteeism rate. What should your next step be?
a. Set new absenteeism standards
b. Develop new measures of absenteeism
c. Terminate three employees for excessive absenteeism
d. All of these would be good examples of taking corrective action.
e. None of these

ANS: PTS: 1 DIF: 3 REF: 548
NAT: AACSB Analytic | Operations Management TYP: A

17. Kyle’s work group consistently exceeds the goals the members set for themselves some months ago. In an attempt to better motivate the group, Kyle thought it would be a good idea to set new goals. This is an example of Kyle exercising control by
a. comparing performance to standards.
b. developing adequate measures of performance.
c. taking corrective action.
d. all of these
e. comparing performance to standards and developing adequate measures of performance only.

ANS: PTS: 1 DIF: 2 REF: 548
NAT: AACSB Analytic | Operations Management TYP: A

18. ____ is any organizational department or unit under the supervision of a single person who is responsible for its activity.
a. Independent center
b. Responsibility center
c. Analysis center
d. Control center
e. Budgeting center

ANS: PTS: 1 DIF: 2 REF: 548
NAT: AACSB Analytic | Operations Management TYP: F

19. Which of the following includes anticipated and actual expenses for a responsibility center?
a. revenue budget
b. cash budget
c. capital budget
d. expense budget
e. operating budget

ANS: PTS: 1 DIF: 2 REF: 548
NAT: AACSB Analytic | Operations Management TYP: F

20. Which of these is a financial budget that estimates cash flows on a daily basis or weekly basis to ensure that the company can meet its obligations?
a. Capital expenditure budget
b. Balance sheet budget
c. Cash budget
d. Revenue budget
e. Profit budget

ANS: PTS: 1 DIF: 1 REF: 549
NAT: AACSB Analytic | Operations Management TYP: F

21. Madison has been assigned to work on the development of a budget that plans future investments in major assets such as buildings and heavy machinery. Madison is working on a(n)
a. cash budget.
b. capital budget.
c. revenue budget.
d. operating budget.
e. expense budget.

ANS: PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management TYP: A

22. The ____ plans future investments in major assets to be depreciated over several years.
a. capital budget
b. balance sheet budget
c. cash budget
d. revenue budget
e. profit budget

ANS: PTS: 1 DIF: 1 REF: 549
NAT: AACSB Analytic | Operations Management TYP: F

23. Brad is a department manager at Home Theater, Inc. His sole role in the budget process is to implement the budget that is developed for him. This is an example of
a. strategic budgeting.
b. operational budgeting.
c. top-down budgeting.
d. management by objectives.
e. bottom-up budgeting.

ANS: PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management TYP: A

24. Pauline is an area manager at Ironman Gym. She anticipates her area’s needs and formulates a proposed budget every quarter. She then sends this proposal to her manager. This is an example of
a. top-down budgeting.
b. strategic budgeting.
c. revenue budgeting.
d. bottom-up budgeting.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management TYP: A

25. An advantage of the bottom-up budgeting process is
a. its emphasis on bureaucratic control.
b. lower managers are more involved.
c. top managers control the information flow.
d. top managers are often not committed to achieving budget targets.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management TYP: F

26. The firm’s financial position with respect to assets and liabilities at a specific point in time is shown by its
a. activity ratio.
b. profitability ratio.
c. income statement.
d. liquidity ratio.
e. balance sheet.

ANS: PTS: 1 DIF: 2 REF: 550
NAT: AACSB Analytic | Operations Management TYP: F

27. ____ provide the basic information used for financial control of an organization.
a. Owners equity
b. Income statements
c. Financial position
d. Mission Statements
e. 100-K’s

ANS: PTS: 1 DIF: 1 REF: 550
NAT: AACSB Analytic | Operations Management TYP: F

28. ____ is(are) the difference between assets and liabilities and is the company’s net worth in stock and retained earnings.
a. Assets
b. Current debt
c. Net profit
d. Owners’ equity
e. Liabilities

ANS: PTS: 1 DIF: 1 REF: 550
NAT: AACSB Analytic | Operations Management TYP: F

29. The ____ ratio refers to the ability of the organization to meet its current debt obligation.
a. activity
b. liquidity
c. profitability
d. conversion
e. growth

ANS: PTS: 1 DIF: 2 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

30. The conversion ratio is considered to be a(n)
a. activity ratio.
b. liquidity ratio.
c. profitability ratio.
d. leverage ratio.
e. cash ratio.

ANS: PTS: 1 DIF: 2 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

31. Which of the following is a ratio that measures the firm’s internal performance with respect to key activities defined by management?
a. A liquidity ratio
b. An activity ratio
c. Return on total assets
d. A current ratio
e. Profit margin on sales

ANS: PTS: 1 DIF: 1 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

32. The ____ is purchase orders divided by customer inquiries.
a. current ratio
b. inventory turnover ratio
c. conversion ratio
d. profit margin on sales
e. none of these

ANS: PTS: 1 DIF: 2 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

33. Tammy is a production manager at Eagle’s Nest, Inc.. She is concerned that too much money is being wasted on inventory that is sitting in the warehouse too long. She should calculate a(n)
a. current ratio.
b. inventory turnover ratio.
c. conversion ratio.
d. profitability ratio.
e. leverage ratio.

ANS: PTS: 1 DIF: 2 REF: 552
NAT: AACSB Analytic | Operations Management TYP: A

34. Net income divided by sales is the correct formula for calculating
a. return on total assets.
b. a current ratio.
c. a liquidity ratio.
d. profit margin on sales.
e. a corporate evaluation.

ANS: PTS: 1 DIF: 1 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

35. Which of the following refers to funding activities with borrowed money?
a. ROA
b. Leverage
c. Liquidity
d. Profitability
e. Activity

ANS: PTS: 1 DIF: 2 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

36. The basic philosophy of control at Nutrients-For-You, Inc. is based on the policies found in the employee handbook, as well as a strict hierarchy of authority. This philosophy is consistent with
a. clan control.
b. bottom-up control.
c. hierarchical control.
d. culture control.
e. decentralized control.

ANS: PTS: 1 DIF: 2 REF: 553
NAT: AACSB Analytic | Operations Management TYP: A

37. Decentralized control is usually implemented in all of the following areas EXCEPT:
a. self-control.
b. peer group.
c. corporate culture.
d. employee selection and socialization.
e. the quality control department.

ANS: PTS: 1 DIF: 2 REF: 554
NAT: AACSB Analytic | Operations Management TYP: F

38. Which of the following allows employees to see for themselves the financial condition of the company?
a. Open-book management
b. An economic value-added system
c. Activity-based costing
d. An inappropriate control system
e. Market value-added system

ANS: PTS: 1 DIF: 2 REF: 555
NAT: AACSB Analytic | Operations Management TYP: F

39. The control “system” at FreshFood Corporation is based on the culture of the organization and norms that develop in the individual work teams. This is an example of
a. bureaucratic control.
b. decentralized control.
c. organizational control.
d. feedback control.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 554
NAT: AACSB Analytic | Operations Management TYP: A

40. The goal of ____ is to get every employee thinking and acting like a business owner.
a. management-by-walking around
b. closed-book management
c. MBO
d. open-book management
e. just-in-time inventory systems

ANS: PTS: 1 DIF: 2 REF: 555
NAT: AACSB Analytic | Operations Management TYP: F

41. Total quality management
a. is based on the ideas of Frederick Taylor.
b. gives managers total responsibility for achieving quality goals.
c. gives all employees the responsibility for achieving quality goals.
d. was first successfully implemented in the United States.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

42. The ____ offers some indication of the degree to which various countries are open regarding economic matters.
a. Opacity Index
b. Economic Index
c. Clarity Index
d. National Index
e. Foreign Economy Index

ANS: PTS: 1 DIF: 2 REF: 555
NAT: AACSB Analytic | Operations Management TYP: F

43. Which of the following is a philosophy of organization-wide commitment to continuous improvement, focusing on teamwork, customer satisfaction, and lowering costs?
a. Engineering
b. Total quality management
c. Outsourcing
d. Culture
e. Diversity

ANS: PTS: 1 DIF: 1 REF: 557
NAT: AACSB Analytic | Operations Management TYP: F

44. A quality circle is a group of ____ volunteer employees.
a. 2 to 4
b. 6 to 12
c. 10 to 20
d. 15 to 25
e. 30 to 50

ANS: PTS: 1 DIF: 1 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

45. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common work activities is a
a. feedforward control group.
b. work team.
c. quality circle.
d. committee.
e. problem team.

ANS: PTS: 1 DIF: 1 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

46. Heather belongs to an informal group at work that meets twice a month to discuss common issues and problems in the workplace. Recently, this group has been focusing on ways to improve safety in the workplace. This group is an example of
a. a safety group.
b. a quality circle.
c. an ad-hoc committee.
d. a problem team.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: A

47. Quality circles are based on the assumption(s) that
a. the people who do the job know it better than anyone else.
b. quality can be increased by increasing the size of the organization.
c. quality can be increased by talking more about it.
d. the more employees talk, the more satisfied they will be.
e. all of these.

ANS: PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

48. What is the key to successful benchmarking?
a. Application
b. Implementation
c. Analysis
d. Strategy
e. Planning

ANS: PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

49. Which of the following is the process of measuring your organizational process against the best in the industry?
a. Outsourcing
b. Continuous improvement
c. Environmental analysis
d. Benchmarking
e. Competitive measurement

ANS: PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

50. Which of the following is a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs?
a. Continuous improvement
b. Cycle time
c. Quality circles
d. Six Sigma
e. Benchmarking

ANS: PTS: 1 DIF: 1 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

51. To reduce the organization’s cycle time is to reduce the number of
a. of committees in the organization.
b. layers of management.
c. steps in an organizational process.
d. staff employees in the organization.
e. none of these.

ANS: PTS: 1 DIF: 2 REF: 559
NAT: AACSB Analytic | Operations Management TYP: F

52. ____ refers to the steps taken to complete a company process.
a. Continuous improvement
b. Cycle time
c. Quality circles
d. Six sigma
e. Benchmarking

ANS: PTS: 1 DIF: 1 REF: 559
NAT: AACSB Analytic | Operations Management TYP: F

53. It seems that once a year the managers of Stone Construction, Inc. attempt a major organization intervention, such as management-by-objectives. They never seem to be satisfied with the performance of Stone Construction and, sure enough, 12 months later, along comes another major intervention. By implementing organizational change in this way, Stone Construction’s management may well be violating the principle of
a. benchmarking.
b. continuous improvement.
c. unity of direction.
d. top-down control.
e. none of these.

ANS: PTS: 1 DIF: 3 REF: 560
NAT: AACSB Analytic | Operations Management TYP: A

54. ____ is(are) most beneficial when employees have challenging jobs.
a. Six Sigma
b. Total Quality Management
c. Kaizen
d. Quality circles
e. Continuous improvement

ANS: PTS: 1 DIF: 2 REF: 560
NAT: AACSB Analytic | Operations Management TYP: F

55. Contingency factors that can influence the success of a TQM program in a positive way include all of the following EXCEPT:
a. tasks make high skill demands on employees
b. TQM serves to enrich jobs and motivate employees
c. problem-solving skills are improved for all employees
d. participation and teamwork are used to tackle significant problems
e. managers wait for big, dramatic innovations

ANS: PTS: 1 DIF: 2 REF: 560
NAT: AACSB Analytic | Operations Management TYP: F

56. ____ is a contingency factor that can influence the success of a TQM program in a negative way.
a. Continuous improvement is a way of life
b. TQM serves to enrich jobs and motivate employees
c. Problem-solving skills are improved for all employees
d. Participation and teamwork are used to tackle significant problems
e. Union leaders are left out of QC discussions

ANS: PTS: 1 DIF: 2 REF: 560
NAT: AACSB Analytic | Operations Management TYP: F

57. Contingency factors that can influence the success of a TQM program in a negative way include all of the following EXCEPT:
a. tasks make high skill demands on employees
b. management expectations are unrealistically high
c. middle managers are dissatisfied about loss of authority
d. workers are dissatisfied with other aspects of organizational life
e. managers wait for big, dramatic innovations

ANS: PTS: 1 DIF: 2 REF: 560
NAT: AACSB Analytic | Operations Management TYP: F

58. Which of these is based on a set of international standards for quality?
a. Quality circle
b. Corporate governance
c. ISO certification
d. Open-book management
e. Balance scorecard

ANS: PTS: 1 DIF: 2 REF: 561
NAT: AACSB Analytic | Operations Management TYP: F

59. Which of the following is a control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible assets?
a. Open-book management
b. Economic value-added system
c. Activity-based costing
d. Inappropriate control system
e. None of these

ANS: PTS: 1 DIF: 1 REF: 562
NAT: AACSB Analytic | Operations Management TYP: F

60. ____ is a control system that identifies the various activities needed to produce a product and determines the cost of those activities.
a. Open-book management
b. An economic value-added system
c. Activity-based costing
d. An inappropriate control system
e. None of these

ANS: PTS: 1 DIF: 1 REF: 562
NAT: AACSB Analytic | Operations Management TYP: F

61. Which of the following refers to the system of governing an organization so that the interests of corporate owners are protected?
a. Quality circle
b. Corporate governance
c. ISO certification
d. Open-book management
e. Balance scorecard

ANS: PTS: 1 DIF: 2 REF: 562
NAT: AACSB Analytic | Operations Management TYP: F

62. Ophelia, the new CEO at Odyssey Inc., plans to implement a highly effective systematic process of regulating organizational activities to make them consistent with the expectations that are established by managers within the company. This is referred to as:
a. Organizational control
b. Feedback control
c. Budgetary control
d. Systems control
e. Quality control

ANS: PTS: 1 DIF: 3 REF: 542
NAT: AACSB Analytic | Creation of Value TYP: A

63. Focusing on how well resources and human capital are being managed for the company’s future refers to which component of the balanced scorecard?
a. Customers
b. Learning and growth
c. Financials
d. Internal business processes
e. External business processes

ANS: PTS: 1 DIF: 2 REF: 544
NAT: AACSB Analytic | Creation of Value TYP: F

64. In the process of implementing the balanced scorecard approach at his company, operations manager Seth Howard wonders whether internal activities and processes add value for customers and shareholders. This involves which dimension of the balanced scorecard?
a. Customers
b. Learning and growth
c. Financials
d. External business processes
e. Internal business processes

ANS: PTS: 1 DIF: 3 REF: 545
NAT: AACSB Analytic | Creation of Value TYP: A

65. Use of the balanced scorecard can hinder or decrease organizational performance if it is implemented using which type of orientation?
a. Performance management orientation
b. Performance measurement orientation
c. Customer orientation
d. Learning and growth orientation
e. Internal business process orientation

ANS: PTS: 1 DIF: 2 REF: 545
NAT: AACSB Analytic | Creation of Value TYP: F

66. ________ control is the process of setting targets for an organizations expenditures.
a. Quality
b. Income
c. Budgetary
d. Systems
e. Supply chain

ANS: PTS: 1 DIF: 1 REF: 548
NAT: AACSB Analytic | Creation of Value TYP: F

67. Ron meets with his company’s accountant to discuss the budget of anticipated and actual expenses for each segment of the organization. This involves review of which type of budget?
a. Expense budget
b. Revenue budget
c. Cash budget
d. Capital budget
e. Nonfinancial budget

ANS: PTS: 1 DIF: 2 REF: 548
NAT: AACSB Analytic | Creation of Value TYP: A

68. Stella, a systems manager for a large technology company, would like to get an understanding of her company’s financial position with respect to assets and liabilities at the end of the fiscal year. Which financial statement should she refer to?
a. Income statement
b. Activity ratio
c. TQM report
d. Balance sheet
e. Balance scorecard

ANS: PTS: 1 DIF: 3 REF: 550
NAT: AACSB Analytic | Creation of Value TYP: A

69. In today’s tough economy, companies are predominantly looking for employees with what types of skills?
a. Accounting skills
b. Conceptual skills
c. Researching skills
d. Technical skills
e. A diverse set of skills

ANS: PTS: 1 DIF: 2 REF: 551
NAT: AACSB Analytic | Creation of Value TYP: F

70. Which of the following is considered a leverage ratio?
a. Debt ratio
b. Return on total assets
c. Profit margin on sales
d. Conversion ratio
e. Inventory turnover

ANS: PTS: 1 DIF: 2 REF: 552
NAT: AACSB Analytic | Creation of Value TYP: F

71. At LBK Industries, responsibility for quality control rests with a team of quality control inspectors and supervisors rather than with employees. LBK uses what type of organizational control?
a. Matrix control
b. Hierarchical control
c. Decentralized control
d. Bottom-up control
e. Balanced control

ANS: PTS: 1 DIF: 3 REF: 553
NAT: AACSB Analytic | Creation of Value TYP: A

72. At RWI Distilleries, rules and procedures are used only when necessary. Instead, shared goals and values guide employee behavior. RWI uses what type of organizational control?
a. Centralized control
b. Hierarchical control
c. Decentralized control
d. Top-down control
e. Balanced control

ANS: PTS: 1 DIF: 3 REF: 554
NAT: AACSB Analytic | Creation of Value TYP: A

73. Silver n’ Gold Inc. recently introduced a new control philosophy where all employees have access to the same information that owners have, such as what money is coming in and where it is going. This is an example of which control philosophy?
a. Balanced scorecard
b. Six Sigma
c. Continuous improvement
d. Total quality management
e. Open-book management

ANS: PTS: 1 DIF: 3 REF: 555
NAT: AACSB Analytic | Creation of Value TYP: A

74. Charlie, a manager at a textile company, is bothered by a lack in quality of products manufactured by his company. Charlie hopes to infuse quality into the company through continuous improvement by involving everyone who works there. This describes which control philosophy?
a. Balanced scorecard
b. Six Sigma
c. Continuous improvement
d. Total quality management
e. Open-book management

ANS: PTS: 1 DIF: 3 REF: 557
NAT: AACSB Analytic | Creation of Value TYP: A

75. Which quality control technique uses a five-step methodology to define, measure, analyze, improve, and control processes, otherwise referred to as DMAIC?
a. Quality circles
b. Six Sigma
c. Benchmarking
d. Balanced scorecard
e. Continuous improvement

ANS: PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Creation of Value TYP: F

76. Which financial control system measures the stock market’s estimate of the value of a company’s past and projected capital investment projects?
a. Market value-added
b. Economic value-added
c. System governance
d. Activity-based costing
e. Corporate governance

ANS: PTS: 1 DIF: 2 REF: 562
NAT: AACSB Analytic | Creation of Value TYP: F

CASE

Scenario – Katrina Aldridge

The yearly auditing review of Pilgrim Industries is scheduled for next month. Katrina Aldridge is preparing for that audit and is also preparing her budget for the coming year.

1. Which of these budgets will provide Katrina information about planned investments in major assets like buildings and heavy machinery?
a. Cash budget
b. Revenue budget
c. Capital budget
d. Expense Budget
e. Balance-Sheet budget

ANS:

PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management KEY: Scenario Questions
TYP: A

2. In planning and budgeting for the next 12 months, Katrina is participating in a budgeting process in which lower-level manager’s budget their department’s resource needs and pass them up to top management for approval. This budget process is an example of
a. zero-based budgeting.
b. bottom-up budgeting.
c. top-down budgeting.
d. balance sheet budgeting
e. none of these.

ANS:

PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management KEY: Scenario Questions
TYP: F

3. Katrina has also requested that the financial ratios be calculated and analyzed for her. Which of the following ratios will give her the best information for evaluating liquidity?
a. Profit margin on sales
b. Current ratio
c. Conversion ratio
d. Return on assets
e. None of these.

ANS:

PTS: 1 DIF: 2 REF: 551
NAT: AACSB Analytic | Operations Management KEY: Scenario Questions
TYP: A

COMPLETION

1. The systematic process through which managers regulate organizational activities is known as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 542
NAT: AACSB Analytic | Operations Management TYP: F

2. ____________________ focuses on whether performance meets established standards.

ANS:

PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

3. When ____________________ deviates from a(n) ____________________, managers must interpret the deviation.

ANS:

PTS: 1 DIF: 2 REF: 547
NAT: AACSB Analytic | Operations Management TYP: F

4. A(n) ____________________ is defined as any organizational department or unit under the supervision of a single person who is responsible for its activity.

ANS:

PTS: 1 DIF: 2 REF: 548
NAT: AACSB Analytic | Operations Management TYP: F

5. A(n) ____________________ includes anticipated and actual expenses for each responsibility center and for the total organization.

ANS:

PTS: 1 DIF: 2 REF: 548
NAT: AACSB Analytic | Operations Management TYP: F

6. A(n) ____________________ lists forecasted and actual revenues of the organization.

ANS:

PTS: 1 DIF: 2 REF: 548
NAT: AACSB Analytic | Operations Management TYP: F

7. The ____________________ estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization has sufficient cash to meet its obligations.

ANS:

PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management TYP: F

8. The ____________________ lists planned investments in major assets such as buildings, trucks, and heavy machinery, often involving expenditures over more than a year.

ANS:

PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management TYP: F

9. In a traditional ____________________ approach, budgeted amounts for the coming year are imposed on middle- and lower-level managers.

ANS:

PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management TYP: F

10. A budgeting process in which middle and lower-level managers set departmental budget targets in accordance with overall company revenues and expenditures specified by top management is called ____________________ budgeting.

ANS:

PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management TYP: F

11. A budgeting process in which lower-level managers budget their departments’ resource needs and pass them up to top management for approval is called ____________________ budgeting.

ANS:

PTS: 1 DIF: 2 REF: 549
NAT: AACSB Analytic | Operations Management TYP: F

12. The ____________________ provides three types of information: assets, liabilities, and owners’ equity.

ANS:

PTS: 1 DIF: 2 REF: 550
NAT: AACSB Analytic | Operations Management TYP: F

13. The firm’s financial performance for a given time period is shown on the ____________________.

ANS:

PTS: 1 DIF: 2 REF: 550
NAT: AACSB Analytic | Operations Management TYP: F

14. A(n) ____________________ ratio indicates an organization’s ability to meet its current debt obligations.

ANS:

PTS: 1 DIF: 2 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

15. A(n) ____________________ ratio measures internal performance with respect to key activities defined by management.

ANS:

PTS: 1 DIF: 2 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

16. The percentage representing what a company earned from its assets is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 552
NAT: AACSB Analytic | Operations Management TYP: F

17. ____________________ involves monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms.

ANS:

PTS: 1 DIF: 2 REF: 553
NAT: AACSB Analytic | Operations Management TYP: F

18. ____________________ control uses cultural values, traditions, shared beliefs, and trust to generate compliance with organizational goals.

ANS:

PTS: 1 DIF: 2 REF: 554
NAT: AACSB Analytic | Operations Management TYP: F

19. Sharing financial information and results with all employees in the organization is called ____________________ management.

ANS:

PTS: 1 DIF: 2 REF: 555
NAT: AACSB Analytic | Operations Management TYP: F

20. An organization wide commitment to infusing quality into every activity through continuous improvement is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 557
NAT: AACSB Analytic | Operations Management TYP: F

21. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common work activities is known as a(n) ____________________.

ANS:

PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

22. The continuous process of measuring products, services, and practices against major competitors or industry leaders is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

23. ____________________ refers to the number of steps taken to complete a company process.

ANS:

PTS: 1 DIF: 2 REF: 559
NAT: AACSB Analytic | Operations Management TYP: F

24. The implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis is referred to as ____________________.

ANS:

PTS: 1 DIF: 2 REF: 560
NAT: AACSB Analytic | Operations Management TYP: F

25. A control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible assets is called the ____________________.

ANS:

PTS: 1 DIF: 2 REF: 562
NAT: AACSB Analytic | Operations Management TYP: F

26. A control system that identifies the various activities needed to provide a product and determines the cost of those activities is called ____________________.

ANS:

PTS: 1 DIF: 2 REF: 562
NAT: AACSB Analytic | Operations Management TYP: F

27. ____________________ refers to the system of governing an organization so that the interests of corporate owners are protected.

ANS: PTS: 1 DIF: 3
REF: 562 NAT: AACSB Analytic | Operations Management
TYP: F

SHORT ANSWER

1. List the four major perspectives of a balanced scorecard.

ANS:

PTS: 1 DIF: 2 REF: 545
NAT: AACSB Analytic | Operations Management TYP: F

2. List the four steps in the feedback control model.

ANS:

PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

ESSAY

1. Identify and briefly describe the four steps of the feedback control model.

ANS:

PTS: 1 DIF: 2 REF: 546
NAT: AACSB Analytic | Operations Management TYP: F

2. Describe the difference between a balance sheet and an income statement.

ANS:

PTS: 1 DIF: 2 REF: 550
NAT: AACSB Analytic | Operations Management TYP: F

3. Identify and briefly describe each of the common financial ratios addressed in your text.

ANS:

PTS: 1 DIF: 2 REF: 551
NAT: AACSB Analytic | Operations Management TYP: F

4. Compare hierarchical control with decentralized control.

ANS:

PTS: 1 DIF: 2 REF: 553-554
NAT: AACSB Analytic | Operations Management TYP: F

5. Discuss open-book management and the balanced scorecard.

ANS:

PTS: 1 DIF: 2 REF: 544 | 555
NAT: AACSB Analytic | Operations Management TYP: F

6. Discuss the evolution of the balanced scorecard from a system that places equal emphasis on performance management categories to one that emphasizes cause and effect.

ANS:

PTS: 1 DIF: 2 REF: 544-545
NAT: AACSB Analytic | Operations Management TYP: F

7. In a TQM program, what is benchmarking?

ANS:

PTS: 1 DIF: 2 REF: 558
NAT: AACSB Analytic | Operations Management TYP: F

8. Discuss the positive and negative factors that can influence the success of a TQM program.

ANS:

PTS: 1 DIF: 2 REF: 560
NAT: AACSB Analytic | Operations Management TYP: F