Principles of Management - Final - Belmont
One of Mary Parker Follett's major contributions to the behavioral approach to management was her stress on the importance of
work groups as an influence on worker behavior.
While intuitive decision making is not based on formal analysis or conscious reasoning, it often has a very real basis in
years of practice and experience.
What is meant by importing?
The purchase of goods and services from a foreign source
Also known as moral philosophies, what term describes sets of principles that describe what a person believes are the right way to behave?
. Individual values
How many choices does the typical American make in a average day?
70
What is meant by focus?
A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment
What is a multinational corporation (MNC)?
A corporation, such as IBM, ExxonMobil, and Nestlé, that operates on a worldwide scale, without significant ties to any one nation or region
What is the administrative model of decision making?
A descriptive approach, recognizing that people do not always make decisions with logic and rationality, that outlines how managers actually do make decisions; also known as the organizational, neoclassical, or behavioral model
Which of the following characteristics relates to a compressed work week?
A four-day (or shorter) period in which an employee works 40 hours
Which of the following characteristics relates to an organizational chart?
A graphic display of the official lines of authority and communication within the organization
Which of the following characteristics relates to the Hawthorne studies?
A group of studies that provided the stimulus for the human-relations movement within management theory and practice
What is meant by an authentic leader?
A leader who is passionate about company objectives, models corporate values in the workplace, and forms strong relationships with stakeholders
Which of the following characteristics relates to situational leadership theory?
A leadership model whose premise is that a leader's style should be contingent on subordinates' competence and commitment
The basic tenets of capitalism were set forth in a well-known book, The Wealth of Nations, written by
Adam Smith
You believe that America's health care system will fix itself if the government simply leaves it alone. Your belief would probably be supported by which of the following persons?
Adam Smith
What term describes the universality of management as a function that can be applied to all organizations?
Administrative management
Which of the following refers to power that is derived by virtue of a person's association with someone else who has some source of power?
Affiliative power
What is the nature of the organization's internal environment?
All factors that make up the organization, such as the owners, managers, employees, and board of directors
Which of the following characteristics relates to the nature of the management environment?
All of those factors that affect the operation of the organization
What name is given to an organizing concept that ensures that all positions are directly linked in some way to top management?
Chain of command
You manufacture high-tech multicomponent widgets in a new factory in Illinois. Your production line has eight different work stations, and each worker operates a computerized assembler. Your assembly method produces a widget every ten minutes. Your new factory is making use of what approach to management?
Classical
What term describes an approach to management that stresses the manager's role in a formal hierarchy of authority and focuses on the task, machines, and systems needed to accomplish the task efficiently?
Classical approach
Which of the following refers to the design of jobs based on the principles of division of labor and specialization?
Classical approach to job design
What name is given to when authority is dispersed to several positions at various levels in the organization?
Decentralization
You own and operate your own hamburger stand. One of your employees makes the hamburger patties, a second grills them, a third slaps them in buns, and a fourth sells them to customers. You are utilizing what management concept or theory?
Division of labor, or specialization
Which of the following is NOT a component of the hedgehog concept?
Does your organization have the core competencies
What term describes accomplishing the objectives with a minimum of resources?
Efficiently
The person primarily associated with the Hawthorne studies was
Elton Mayo.
What name is given to the most effective managers, who engage in both dimensions of leadership behaviors by getting employees involved in the operation of their departments or divisions in a positive and constructive manner, setting general goals, providing fairly loose supervision, and recognizing employees' contributions?
Employee-centered leaders
What term describes the process of providing employees with the ability to contribute input and take on responsibilities for organizational decisions?
Empowerment
Which of the following refers to an identifiable problem, situation, or opportunity that requires a person or organization to choose among several actions that may be evaluated as ethical or unethical?
Ethical issue
Which of the following refers to a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective?
Ethics audit
Which of the following refers to an economic and political union of 28 member nations that are located primarily in Europe?
European Union (EU)
What term describes restrictions on the amount of a particular currency that may be bought or sold?
Exchange controls.
What name is given to the ratio at which one nation's currency can be exchanged for another nation's currency or for gold?
Exchange rate
Which of the following refers to all of the factors outside the organization that may affect the managers' actions?
External environment
Which of the following refers to organizations owned either privately by one or more individuals or publicly by stockholders?
For-profit companies
Which of the following characteristics relates to codes of ethics?
Formalized rules and standards that describe and delineate what the organization expects of its employees
What name is given to a form of licensing in which a company agrees to provide a name, logo, methods of operation, advertising, products, and other elements associated with the company's business, in return for a financial commitment and the agreement to conduct business in accordance with the company's standard of operations?
Franchising
The scientific-management theorist who studied the motions of bricklayers and nearly tripled their productivity was
Frank Gilbreth.
You watch a painter paint a house, and you videotape her movements. Later, you make specific recommendations for reducing her painting motions so she can be more efficient, and you also design a movable ladder for her to reduce fatigue. You are a disciple of
Frank and Lillian Gilbreth.
What term describes the broad, complex factors that affect all organizations?
General environment
The fact that U.S. businesses now frequently engage in international trading relations is an illustration of what dimension of the general environment?
Global
What name is given to the final result that a firm wishes to achieve?
Goal
____ of a plan is where the organization goes from the "thinking" mode to the "doing" mode.
Implementation
Which of the following refers to a tax levied by a nation on goods bought outside its borders and imported into the country?
Import tariff
What name is given to the relationships among positions that are not connected by the organizational chart?
Informal organization
What term describes the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems?
Infrastructure
The basic mission of which of the following is to oversee the international monetary system and help ensure stable currencies and exchange rates throughout the world?
International Monetary Fund (IMF)
Which of the following refers to the buying, selling, and trading of goods and services across national boundaries?
International business
Jay Wilkinson suggests when determining company values ask the following questions EXCEPT
Is it achievable
It is interesting that in certain industries, such as the hotel industry, service personnel
It is interesting that in certain industries, such as the hotel industry, service personnel
Which of the following refers to a working arrangement whereby two employees do one job? a. Compressed work week
Job sharing
What name is given to individuals who work primarily with information or who develop and use knowledge in the workplace
Knowledge workers
What name is given to a description of how leaders develop "unique" working relationships with each of their employees, based on the nature of their social exchanges?
Leader-Member Exchange (LMX) Theor
Which of the following refers to the field of management that includes the study and use of mathematical models and statistical methods to improve the effectiveness of managerial decision making?
Management science
Which of the following refers to a definition of an organization's fundamental purpose and its basic philosophy?
Mission
What term is used to describe a formal written declaration of the organization's mission that often includes the firm's philosophy, its primary products and markets, the intended geographic scope, and the nature of the relationships between the firm, its stakeholders, and society?
Mission statement
Which of the following refers to the sum total of employees' attitudes toward their jobs, employer, and colleagues?
Morale
Your company's work teams have won national awards for making the finest widgets ever seen. Your loyal and productive workers have never been more proud of their work. What important characteristic of motivation is probably at an all-time high at your company?
Morale
Dan Pink says that tying incentives to work
Narrows focus
A decision to build a new plant, acquire another company, create a new position, enter into a strategic alliance, invest in enhancing operations, or develop a new product is a ______ type of decision.
Non-programmed
Which of the following characteristics relates to dumping?
Occurs when a country or business firm sells products at less than what it costs to produce them
What term describes a person's ability to satisfy or deny satisfaction of another's need, based on a formal contractual relationship between an organization and the individual? a. Information power
Organizational power
Which of the following characteristics relates to suppliers?
Organizations and individuals who provide resources to other organizations
IBM has recently rearranged various administrative divisions and departments. This activity can be classified into which major management function?
Organizing
What name is given to the activities involved in designing jobs for employees, grouping these jobs together into departments, and developing working relationships among organizational units/departments and employees to carry out the plans?
Organizing
What name is given the transfer of manufacturing or other functions (such as data processing) to countries where labor and supplies are less expensive?
Outsourcing
The company that was founded on with strong CSR principles is
Patagonia
What name is given to a person's ability to satisfy or deny satisfaction of another's need, based on an interpersonal relationship between individuals or on his or her personal characteristics?
Personal power
What name is given to personal power that results when one person identifies with and admires another?
Referent power
What name is given to a process theory that assumes that behavior may be reinforced by relating it to its consequences?
Reinforcement theory
What name is given to a person's willingness to take risks when making decisions?
Risk propensity
What name is given to the evaluation of the organization's internal strengths and weaknesses and the opportunities and threats associated with the business's external environment? a. Business-level strategy
SWOT analysis
Which of the following refers to the decision maker's decision to choose the first alternative that appears to resolve the problem satisfactorily?
Satisficing
What name is given to a theory within the classical approach that focuses on the improvement of operational efficiencies through the systematic and scientific study of work methods, tools, and performance standards?
Scientific management
What term describes groups that have a less formal connection to the organization, such as environmentalists, special interest groups, and the media?
Secondary stakeholders
What is meant by interpersonal skills
Skills such as communication, listening, conflict resolution, and leading that are necessary to work with others
What term describes goods or services that may be used in place of those furnished by a given business?
Substitutes
The work of W. Edwards Deming is most appropriately classified in which theory of management?
Systems
The parties it deals with, such as suppliers, customers, and organizations producing substitute goods, are all a part of a firm's
Task Environment
What name is given to those factors that have a direct effect on a specific organization and its managers, including customers, suppliers, competitors, substitutes, and potential new entrants to the industry?
Task environment
Within the general environment, what term describes the knowledge and process of changing inputs (resources, labor, and money) to outputs (goods and services)?
Technological dimension
Karl Marx is mostly know for his writing in the book _______________
The Communist Manifesto
What is meant by charisma?
The ability to inspire admiration, respect, loyalty, and a desire to emulate, based on some intangible set of personality traits; a personal source of powerThis answer is correct.
Which of the following characteristics relates to social forces?
The relationship of people to each other within a particular culture
What is meant by corporate strategy?
The scope and resource deployment components of strategy for the enterprise as a whole
What is an embargo?
The suspension of trade in a particular product by the government
What is meant by soldiering?
The systematic slowdown in work by laborers with the deliberate purpose of keeping their employers ignorant of how fast the work can be done
Which of the following refers to the acquisition of goods in one country and the selling of them to buyers in another country?
Trading company
Which of the following refers to a more traditional approach in which managers engage in both task- and consideration-oriented behaviors in an exchange manner?
Transactional leadership
In the video on culture the organizaiton showcased developed its values that include.
We have each others back
The ______ loans money to countries throughout the world for reconstruction and development, and also makes loans to poorer countries for infrastructure and social services purposes.
World Bank
In the United States, if a businessperson brought an elaborately wrapped gift to a prospective client on their first meeting, it might be viewed as
a bribe.
In analyzing the relationship between ethics and social responsibility, ethics may be viewed as
a component of social responsibility.
When a nation pays for imports with its own goods, it is using
a countertrade agreement.
The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of
a direct investment.
An organization is
a group of people working together to achieve goals or objectives.
In an organizational chart, the higher the level of the box in the chart, the higher the level of
authority.
"Improving people's lives by providing gas and electric services in a sustainable way -- affordable, reliable and clean" is an example of
a mission statement.
When we can identify a symptom of a problem, it is helpful and significant because then we know that
a problem exists.
If it wants to reduce the dollars flowing out of the country, the United States can limit the number of garments being imported from China and Vietnam by imposing
a quota.
In SWOT analysis, an ability or attribute that a company possesses that may give it a distinctive competence is called
a strength.
When a department in an organization has a high level of absenteeism, we are dealing with
a symptom of a problem, not the problem itself.
In the systems approach to management, synergy is an expression of the idea that
a whole is more than the sum of its parts.
Poor morale is most likely to cause
absenteeism.
A managerial decision becomes an ethical issue when
accepted rules no longer apply, and the person must use his or her own moral standards.
Effective use of an organization's resources means
achieving the intended result
Both Henri Fayol and Max Weber were major contributors to the classical approach to management known as
administrative management.
The First Lady's primary source of power is
affiliative.
The most accurate definition of the organizational environment is/are
all those factors that affect the operation of the organization.
For the step of generating alternative courses of action to be effective, decision making must
allot enough time to generate creative alternatives.
The United States' prohibition of the importing of Cuban cigars is an example of
an embargo.
In SWOT analysis, an environmental circumstance that is potentially beneficial for the firm is called
an opportunity.
Frederick Taylor
analyzed jobs to improve efficiency.
The other side of disastrous escalation of commitment is
bailing out of a course of action too soon.
In analyzing their external environment, most organizations find that it presents
both threats and opportunities.
The group decision technique designed to maximize the generation of creative alternatives to a problem is
brainstorming.
The distinguishing feature of division of labor, or specialization, is that it
breaks a job into component tasks and assigns a component to each worker.
Developing widespread electric charging stations for electric cars is an illustration of
building technological infrastructure.
The lowering of the fat content in many American food products is an example of
changing values regarding food products.
When Martin Luther King, Jr., and Malcolm X made their followers feel strong enough to resist racism and segregation, they were using
charismatic power .
A positive contribution of the informal relationships in the organization's operation is
communication and interaction.
Within a ____________orientation type of control system, when employees understand that their behaviors will be met with consequences, either good or bad, they have ample opportunity for ambiguous personal interpretation of how they should act within the company. Selected:
compliance
When your company, Powerful Personal Computers, lays out five million dollars to hire away a woman from a soft-drink firm as your new CEO, it is a good bet that you are paying these big bucks for her.
conceptual skills
When a manager gathers and uses information to make a choice about how an organization's resources will be used, he or she is engaging in
decision making
The difference between an ethic and a law is that a law
defines a minimally acceptable standard of conduct.
You are a frenetic, workaholic manager. You trust no one but yourself. You do everyone's work for them. While they play cards and take four-hour lunches, your subordinates laugh at you because of your complete inability to
delegate.
The fact that Americans are becoming older and more affluent is an example of
demographic characteristics.
The first step in strategic planning is
determining the mission and strategic goals.
When a firm offers a unique good or service to a customer at a premium price, it is following the business-level strategy of
differentiation.
MidAmerican Energy Holdings Company has doubled its wind energy capacity by installing windmills and high-tech batteries to make it a "cleaner" utility company. In high-tech renewable energy, this company has a
distinctive competence.
Your saltwater taffy, which you produce right next to the Pacific Ocean in Orchard Park, Oregon, has a national reputation. You sell all you can make, and people drive hundreds of miles to your shop to buy it. You have a
distinctive competence.
By requiring products to be sold for not less than what it costs to produce them, the United States is attempting to prohibit
dumping.
Although your secretary's work is satisfactory, you do not like her, and one day you abruptly fire her in a rage. The next day, you offer her a cash settlement of $50,000. You seem to be making decisions while in a state of
emotion and stress.
When a performance evaluation is based on favoritism and political opportunity, rather than on merit, an ethical issue has arisen in the area of
employee relations
Choice overload reduces...?
engagement
The task environment includes all of the following except
environmentalists.
The examination of input-output ratios, employee contributions, and the perception of fairness is most associated with
equity theory.
When a manager persists in a failing course of action and discounts negative information, he or she is engaging in
escalation of commitment.
Three important trends that are impacting businesses today are e-business, global organizations, and
ethics and social responsibility.
Jay Wilkinson suggests two ways to handle "haters". The first is don't hire them, the second is ___________
fire them
When a company produces a high-tech, expensive bicycle aimed at serious and affluent bike enthusiasts, it is using the business-level strategy called
focus.
One of the significant conclusions that has been drawn from the Hawthorne studies is that
human relations and the social needs of workers are a critical variable in management.
Jim Collins wrote in Good to Great about Level 5 Leadership. One of these leaders' core characteristics is _.
humility.
Experts generally agree that the first step in decision making is
identifying the problem.
You make a brilliant executive decision to use robots to manufacture your high-tech widgets. You buy ten robots, then tell your workers about your decision. They immediately go out on strike. You have failed to
implement the decision .
Of all the steps in the decision making process, the step that is arguably most crucial and difficult is
implementing the decision.
The purchase of goods and services from a foreign source defines
importing
When a manager uses skills that are necessary to work with other people, such as communicating and listening, he or she is using
interpersonal skills
You buy a thousand shares of Ralston Purina common stock because you just know it is going to go up in value. The next day, it plunges ten dollars. You have probably relied too much on your
intuition.
One of the keys to successful implementation of a decision in an organization is to
involve individuals affected by it in every step of the process.
When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in Moscow, Russia, the company
is exporting the lenses.
The classic model of decision making
is prescriptive; it says how managers should make decisions.
Although regulations and laws sharply limit a leader's ability to use coercive power, it is a fair assessment that
it is still too commonly used in business settings.
The process of dividing jobs among individuals so that each person has only a few tasks to perform is called
job specialization, or division of labor.
In the process of organizing, a first or basic step is usually grouping tasks into
jobs.
Because many countries do not permit foreigners to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with the host country by forming a
joint venture.
Drucker predicted that ______ would become increasingly important in the future, a prediction that became reality in the twenty-first century.
knowledge workers
The phrase caveat emptor means
let the buyer beware.
Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This arrangement is known as
licensing.
At even the largest and most affluent corporation, the strategic management process begins with
limited resources.
As it relates to decision making, uncertainty may be said to be the condition that exists when
little or no reliable information is available.
In a condition of uncertainty, managers must acquire as much relevant information as possible, and then make the best possible use of
logic, intuition, judgment, and experience.
A good way to judge the ethics of a decision is to
look at the situation from several viewpoints.
Mass-production techniques of standardized products
lowered production costs, which led to lower prices and expanded markets.
For any given resource, it is usually an advantage for a business if it has
many suppliers
Social responsibility is the obligation a business has to
maximize its positive impact on society and minimize its negative impact
When financial institutions such as J.P. Morgan reward employees with bonuses and other financial incentives for making risky decisions, they may find that their attempts to motivate employees
may sometimes have negative effects on the organization.
If companies do research to learn about cultural differences before engaging in trade in a particular country, then problems arising from these cultural differences can be
minimized
A set of principles that describe what a person believes is the right way to behave is called
moral philosophy.
The primary concern of the behavioral approach to job design is that work needs to be
more complex and challenging.
The _____ conflict that exists within an organization, the _____ the perception of the ethicalness of the work group.
more; lower
To achieve organizational objectives, employees must have the ability, tools, and _____ to perform their jobs.
motivation
Georgia realized her supervisor was padding his expense account. Research has shown that her response will most likely be to
pad her own expense account.
Perhaps the most basic assumption about the nature of people in Taylor's system of scientific management is that
people are rational beings and are economically motivated.
When extra effort is required from employees and managers have no control over rewards and punishments and close supervision is not practical
personal sources of power are essential.
When the manager of the Boston Red Sox chooses his starting line-up for his next game, he is
planning
The agreement between Japan's Sony Corporation and the Swedish telecommunication company Ericsson to make mobile phones is an example of a
strategic alliance.
The Union Electric Company, a St. Louis utility, buys a large shipment of coal from Peabody Coal Company for use in its coal-fired plants. Peabody is one of Union Electric's
suppliers
The purpose of a strategy is to
take advantage of what the organization does well, or hopes to do well.
Which external factor is the hardest to forecast?
Socio-cultural
The so-called "Protestant ethic" held that
hard work and self-denial would lead to a better afterlife
The condition under which managers are least confident about their decision making and most prone to err is
uncertainty.
With regard to leadership and management, most American companies today appear to be
under-led and over-managed.
The behavioral approach to management is most concerned with
understanding the importance of human needs, behavior, and attitudes in organizations.
In applying reinforcement theory, one of the problems in punishing unacceptable behavior is that punishment may produce
undesirable long-term side effects.
The role of management in fostering ethical behavior in an organization is extremely important because managers
who ask employees to do something wrong have a powerful influence.
What is path-goal theory?
A model concerned with how a leader affects employees' perceptions of their personal and work goals and the paths to goal attainment
What is meant by expectancy?
A person's expectation that effort will lead to high performance
Which of the following characteristics best relates to management?
A set of activities designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing environment
Which of the following characteristics relates to global business (globalization)?
A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business
What is a network organization?
A structure, primarily a command unit, that does not make a good or provide a service but instead coordinates agreements and contracts with other organizations to produce, distribute, and sell products
Which of the following characteristics relates to the quantitative approach?
A viewpoint of management that emphasizes the application of mathematical models, statistics, and structured information systems to support rational management decision making
What is flextime?
A work schedule that allows employees to choose their starting and ending times as long as they are at work during a specified time period
Which of the following characteristics relates to contingency plans?
Alternate courses of action to be undertaken if certain organizational or environmental conditions change
What is meant by behavior modification?
An application of reinforcement theory, which involves change in behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself
What is the systems approach to management theory?
An approach to management theory that views organizations and the environments within which they operate as sets of interrelated parts to be managed as a whole in order to achieve a common goal
What is meant by capitalism?
An economic system wherein the natural laws of supply and demand and free competition within the marketplace will efficiently regulate the flow of resources within a society
What term describes the agreement between ten Southeast Asian countries with the goal to promote economic growth and overall progress in the area via trade and security?
Association of Southeast Asian Nations
Which of the following refers to the right to give work orders to others in the organization and is associated with a position within an organization, not with the individual occupying that position?
Authority
You are the international marketing manager for Checker Burger, Inc., producer of a popular soy burger. There is an excellent market for your burgers in the republic of East Slabovia, a producer of high-quality brandy. The only problem is that East Slaboviar currency is not accepted on the international currency exchange. What can you do to help your trade?
Barter burgers for brandy.
What term describes the design of jobs based on the view that workers are independent parts of the production process whose individual characteristics should be taken into account in forming jobs?
Behavioral approach to job design
What term describes a theory that recognizes the importance of goals in improving employee performance?
Goal-setting theory
What term describes a group of firms or nations that agree to act as a monopoly and not compete with each other?
Cartel
What term describes the pattern of concentrating authority in a relatively few, high-level positions?
Centralization
What name is given to a prescriptive approach--asserting that managers are logical, rational individuals who make decisions that are in the best interests of the organization--that outlines how managers should make decisions?
Classical model of decision making
Subordinate resistance to the use of power is most likely when which of the following sources of power is used?
Coercive
Which of the following refers to an organizationally based source of power derived from a leader's control over punishments or the capacity to deny rewards?
Coercive power
What are potential new competitors?
Companies not currently operating in a business's industry but that have a high potential for entering the industry
What are learning organizations?
Companies that facilitate the learning of their members and continuously transform themselves
What name is given to other organizations that produce similar, or in some cases identical, goods or services?
Competitors
What term describes a person's faith that his or her decisions are reliable and good?
Confidence
What term describes a group of theories that assume that workers are motivated by the desire to satisfy needs and that seek to identify what their needs are?
Content theories
What term describes an approach to management theories that emphasizes identifying the key variables in each management situation, understanding the relationships among these variables, and recognizing the complex system of cause and effect that exists in each and every managerial situation?
Contingency approach
What term describes the suggestion that successful leadership requires matching leaders with primarily stable leadership styles to the demands of the situation?
Contingency theory
You own a painting business in Minnesota. You watch the Weather Channel faithfully and schedule indoor painting for cold/wet days and outdoor painting for warm/dry days. You are using what management theory?
Contingency theory
What term describes a business-level strategy aimed at achieving the overall lowest cost structure in an industry?
Cost leadership
Which of the following refers to those who purchase an organization's goods and/or services?
Customers
Which of the following are the four techniques for a business to eliminate the choice overload problem
Cut, Concretize, Categorize, Condition for complexity
What is determined from patterns among an individual's predispositions, such as which situations to avoid, what kind of jobs an individual enjoys, which things he or she dislikes, how an individual communicates, how an individual approaches problems, and how he or she makes decisions?
Decision styles
What are non-programmed decisions?
Decisions made in response to situations that are unique, relatively unstructured, undefined, and/or of major consequence to the organization
Which of the following refers to the assignment of work activities and authority to a subordinate?
Delegation
What term describes a member of the team who argues for an alternative position, thereby encouraging team members to carefully consider alternative courses of action?
Devil's advocate
What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price?
Differentiation
What term describes the purchase of overseas production and marketing facilities, in which a company may control the facilities outright, or it may be the majority stockholder in the company that controls the facilities?
Direct investment
What term describes what a firm does well relative to its competitors?
Distinctive competence
What name is given to the overall condition of the complex interactions of economies throughout the world?
Economic dimension
Which of the following refers to the relationship of people to resources?
Economic forces
Which of the following refers to using resources in a way that produces a desired result?
Effectively
Which of the following characteristics relates to the North American Free Trade Agreement (NAFTA)?
Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactured products among the three countries
What name is given to the theory that states that motivation depends not only on how much a person wants something but also on the person's perception of how likely he or she is to get it?
Expectancy theory
What name is given to the sale of goods and services to foreign markets?
Exporting
What are strategic goals?
Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services
What is the best way to understand large loads of information as a consumer?
Gradually increase complexity
Which of the following refers to the market value of a nation's total output of goods
Gross domestic product (GDP)
What term is used to describe the product life cycle stage characterized by dramatic increases in the product's market share?
Growth
The management professor who actually followed managers for several days and took detailed notes about the purpose of all their activities was
Henry Mintzberg.
The administrative model of decision making is a descriptive approach based on the work of Nobel Prize winning economist
Herbert Simon.
What name is given to the order in which people strive to satisfy the five basic needs as theorized by Maslow—physiological, security, social, esteem, and self-actualization?
Hierarchy of needs
Understanding external factors is important to managers, equally important is knowing ____________.
How to respond to the factors.
Which of the following refers to a practice whereby employees came to be viewed as informal groups of their own, with their own leadership and codes of behavior, instead of as just unrelated individual workers assigned to perform individual tasks?
Human-relations movement
What term describes a trade arrangement in which one company--the licensor--allows another company--the licensee--to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee, or royalty?
Licensing
In the TedTalk "Moral Operating Systems", Damon Horowitz discusses Plato's philosophy. Plato believed ethics were like ____________.
Math
What name is given to a structure in which members of different functional departments are chosen to work together temporarily on a specific contract or project?
Matrix structure
What name is given to the product life cycle stage when the product's market share either slows or has no growth?
Maturity
When a product has been on the market for many years, such as the automobile, and its growth is slow at best, what stage of the product life cycle is it said to be in?
Maturity
What is the global dimension?
Pertaining to the general environment, those factors in other countries that affect the organization
____ coined the term management by objectives in his 1954 work Practice of Management.
Peter Drucker
Which of the following refers to a set of activities intended to achieve goals, whether for an entire organization, department, or an individual?
Plan
What term describes determining what the organization will specifically accomplish and deciding how to accomplish these goals?
Planning
What term describes the relationship of individuals, their rights, and their property to the state?
Political forces
Which of the following refers to a person's capacity to influence the behavior and attitudes of others?
Power
Which of the following refers to those who have a formal and/or contractual relationship with the firm, such as customers, suppliers, employees, regulators, investors, and communities?
Primary stakeholders
Which of the following characteristics relates to business ethics?
Principles, values, and codes of conduct that define acceptable behavior in business
Which of the following refers to a set of theories that try to determine "how" and "why" employees are motivated to perform?
Process theories
What name is given to decisions made in response to situations that are routine, structured, and fairly repetitive?
Programmed decisions
What name is given to an interpretation of the purpose of life, stating that, instead of merely waiting on earth for release into the next world, people should pursue an occupation and engage in high levels of worldly activity so that they can fulfill their calling?
Protestant ethic
What term describes the act of weakening or eliminating an undesired behavior by providing negative consequences?
Punishment
You are the international marketing manager for Brides & Grooms, Inc., a designer and manufacturer of wedding apparel. This year's fashions are featuring white for the entire wedding party. You scheduled this year's Asian kick-off for next Monday in Tokyo, when you discover that white is the Japanese color of mourning. What did you overlook?
Social and cultural differences
What is the theory that states that employees learn not only through direct experience but also through observation and personal qualities?
Social learning theory
Which of the following refers to a person or group that can affect, or is affected by, an organization's goals or the means to achieve those goals?
Stakeholder
What name is given to the degree to which a firm understands and addresses stakeholder demands?
Stakeholder orientation
Which of the following refers to a partnership formed to create competitive advantage on a worldwide basis?
Strategic alliance
The Hotfoot and Too-Too tribes in Russylvania, a desperately poor nation, engage in a bloody civil war for territory. The total population of Russylvania is ten million, and the area of the country is ten thousand square miles. Population is increasing by 10 percent a year. The civil war is really
The Hotfoot and Too-Too tribes in Russylvania, a desperately poor nation, engage in a bloody civil war for territory. The total population of Russylvania is ten million, and the area of the country is ten thousand square miles. Population is increasing by 10 percent a year. The civil war is really
Which of the following characteristics relates to positive reinforcement?
The act of strengthening a desired behavior by rewarding it or providing other positive outcomes
Which of the following characteristics relates to a business-level strategy?
The area of responsibility usually assigned to the divisional-level managers
Which of the following characteristics relates to the product life cycle?
The cycle of birth, growth, maturity, and decline of a product
What is meant by job specialization?
The division of work into smaller, distinct tasks
Which of the following characteristics relates to departmentalization?
The grouping of related jobs to form an administrative unit--department, area, or center
Which of the following characteristics relates to bounded rationality?
The idea that people have limits to their rationality
What is meant by brainstorming?
The immediate comprehension that something is the case, seemingly without the use of any reasoning process or conscious analysis
What is meant by legitimate power?
The influence that comes from a person's formal position in an organization and the authority that accompanies that position
Which of the following characteristics relates to technical skills?
The knowledge and ability to accomplish the specialized activities of the work group
Which of the following characteristics relates to job design?
The process of grouping tasks into jobs
You advertise heavily for a manager for your new, high-tech computer-chip factory in the Midwest, but you simply cannot find a trained person. You are encountering a modern version of what historical problem?
The productivity problem
Which of the following characteristics relates to organizational culture?
The values, norms, and artifacts shared by members of an organization
What is meant by organizational structure?
The way managers group jobs into departments and departments into divisions
What term describes the assumption that people are naturally lazy, must be threatened and forced to work, have little ambition or initiative, and do not try to fulfill any need higher than security needs at work?
Theory X
You install a televised surveillance system in your doughnut shop so that you can keep an eye on every single employee, even when you are in your office. Your behavior is best described by
Theory X.
What name is given to the assumption that people naturally want to work, are capable of self-control, seek responsibility, are creative, and try to fulfill higher-order needs at work?
Theory Y
One of Dan Pink's main points was
There is a disconnect between what science knows and what business does
Which of the following statements is associated with Level 5 leaders?
They have a fierce resolve to act in the best interest of the organization and have a sense of humility.
In the TedTalk, "A moral operating system", Damon Horowitz paraphrases a quote by Hannah Arend. Most of the evil in the world is not done by people who chose to be evil, it arises from not___________.
Thinking.
Which of the following characteristics relates to controlling?
Those activities that an organization undertakes to ensure that its actions lead to achievement of its objectives
What are maintenance factors?
Those aspects of a job that relate to the work setting, including adequate wages, comfortable working conditions, fair company policies, and job security
What term describes a style that goes beyond mere exchange relationships by inspiring employees to look beyond their own self-interests and by generating awareness and acceptance of the group's purposes and mission?
Transformational leadership
What term describes the condition that exists when little or no factual information is available about a problem, its alternative solutions, and its respective outcomes?
Uncertainty
Which of the following characteristics relates to corporate governance?
the formal system of oversight, accountability, and control for organizational decisions and resource
When a manager reasons well, processes information intelligently, and evaluates which strategic option is potentially most profitable, he or she is displaying
conceptual skills.
Two factors that go hand in hand in managerial decision making and may have positive or disastrous organizational effects are
confidence and risk propensity.
When Reebok has some of its athletic shoes produced by a Korean company, but the Reebok name still appears on the shoes, this illustrates
contract manufacturing.
China's arrangement with the Congo to barter infrastructure in exchange for metals is an example of a
countertrade agreement.
The beliefs, traditions, philosophies, rules, and heroes shared by the members of the organization are referred to as the organization's
culture
According to the text, a blueprint of acceptable behavior that is passed from one generation to the next is called
culture.
You sell Gourmet Mushrooms (GMs) at $100 an ounce. You have a secret source of supply, jealously guarded. Your GMs are better than your competitors' mushrooms, and only the very wealthiest Americans buy them. You are using the business strategy called
focus.
Your sales manager tells you that your widget sales are dropping dramatically, and you should drop the line. Your son-in-law says that widget sales are doing OK and that you should increase production. You increase production. You are engaging in
framing.
In a situation where the customer can choose an identical product from a large number of financial institutions, such as a Visa credit card, the customer's influence on the organization's operations is
great
Managers tend to be more concerned about ethical issues that
have immediate consequences.
Because there are numerous suppliers of potatoes for such major fast-food chains as McDonald's, Wendy's, and Burger King, the suppliers
have little control over the restaurants.
You are an apple farmer and spokesperson for the American Apple Association. You are faced with severe dumping from apple growers in Transoceania, where apples grow wild and the people pay to pick apples as a form of recreation. To counter this threat, you are going to lobby Congress and the president to
impose a protective import tariff.
A negative effect of the informal organization, particularly in times of crisis, may well be
inaccurate information.
The real cause of the increase in output at Western Electric's Hawthorne plant was
increased attention paid to workers.
If unethical behavior receives great reward and little punishment, then the likelihood that unethical behavior will recur is
increased.
According to Hofstede's cultural dimensions theory, _____ tend to be self-reliant and place a high level of importance on freedom and ambition, while _____ place more value on the team than the individual.
individualists; collectivists
You are a computer whiz, and you have installed some software that monitors all incoming and outgoing company emails. You have no formal understanding of leadership theory, but you clearly understand
information power.
Which of the following characteristics relates to a servant leader?
leader who leads by example and forms strong relationships with employees
The manager of the Boston Red Sox delivers a fiery speech just before the game about why it is critically important to beat the Yankees. He is
leading
In the systems approach to management, an open system is usually thought of as having
much interaction with the external environment.
A corporation that operates in several countries without significant ties to any of them is a
multinational.
New employees learn who is important in a company and who is not by knowing its
organizational structure.
Reward power, which stems from a person's ability to bestow rewards, is
organizationally based.
You are the executive vice president of Banana Computer, Inc. You have a competitive machine, but your major competitor has the benefit of large-scale production, making its products less expensive to manufacture. In order to remain price-competitive, you send your parts and subassemblies to Mexico for the final stage of assembly, thereby taking advantage of
outsourcing.
You manage a semiprofessional baseball team, and you call up the Toronto Blue Jays and challenge them to a million-dollar match, winner take all. You suffer from
overconfidence and excessive risk propensity.
Businesses must first be responsible to their , who are primarily concerned with earning a profit.
owners.
The Sierra Club makes a major effort in Washington to pass a law banning the logging of old-growth forest in Oregon through its political action committee (PAC). It is operating in the
political element of the political-legal dimension.
The motivational theories that try to determine "how" and "why" employees are motivated to perform are called
process theories.
While open discussion of an ethical issue may not eliminate all ethical problems in an organization, discussion will usually
promote trust and learning in an organization.This answer is correct.
When managers allow greater participation with regard to the design and implementation of projects, conflict within work groups is
reduced
Your boss tells you that it is up to you to get the widget order out on time. You requisition two employees from the production department to help you, but the production manager says you can't have them. The order goes out late, and you are blamed. You have been given
responsibility without authority.
When an organization gives someone authority, it expects something in return, namely
responsibility.
While you don't like it, you hire a production manager today who you know is dependable, even though in three weeks you might be able to hire a person who is potentially brilliant. In decision-making language, you have
satisficed.
You admire Sam Walton because he founded Wal-Mart when everyone said that discount stores in small cities would not work. You admire his
self-confidence and intuitive ability.
Most businesspeople engaged in international trade underestimate the importance of
social and cultural differences.
The translation of product names can be a crucial factor in the success or failure of a foreign marketing effort because of
sociocultural differences.
Which of the following characteristics relates to the World Bank?
stablished and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries
You own a bakery that makes fine bran muffins, but you lose a customer to another bakery that offers him a 25 percent discount for similar muffins. You are facing a challenge in the
task environment.
You own a gourmet restaurant in Atlanta. You send your chef, Pierre LePeachtree, to a major international restaurant-owners' meeting so he can find out what some of the hot new entrees are around the world. You are being sensitive to the
task environment.
When the manager of the accounting department has the knowledge to answer his employees' questions about current tax regulations, he is displaying
technical skills.
The birth of the human relations approach to motivation can be traced to
the Hawthorne studies.
Herzberg's two-factor theory proposes that
the absence of maintenance factors may dissatisfy workers
Your employees call you "The Computer." Your favorite saying is, "Just the facts, ma'am." You believe that knowledge is power. Your favorite decision-making model is
the classical model.
Strategic planning differs from general planning in that it focuses on
the external environment and long-term goals.
Your fellow employees regularly take home company supplies such as paper, pens, tape, and glue for their personal use. Although you feel it is wrong to do so, you begin taking home company supplies too. The strongest influence on your behavior is
the overall moral climate of your organization.
The greater a person's exposure to unethical behavior, the greater is the likelihood that
the person will behave unethically.
The most accurate definition of the technological dimension of the general environment is
the process of changing inputs to outputs.
A major criticism of the classical theories of management has been that they were Selected:
too narrowly focused on work and efficiency and ignored human needs.
Ethical violations destroy
trust
Generally speaking, there are three conditions that affect decision making: certainty, risk, and
uncertainty.