WGU OBC1 QUIZZES & STUDY QUESTIONS

A group member who says __________ is acting in a task role.

"Last week we decided to table this agenda item. Are we ready to address it again?"

I like going to work." "

- Affective

Personalized power is directed at helping oneself for the sake of personal aggrandizement.

TRUE

Race represents an external dimension of diversity.

TRUE

Research on the correlates of job satisfaction discovered a strong, negative relationship between perceived stress on the job and job satisfaction.

TRUE

The stepladder technique is a proven way to prevent social loafing.

TRUE

The board of directors of the TMJ Company takes great pride in the operations of this very successful company. Which of the following statements would most likely be considered false about TMJ's board of directors?

The board establishes the compensation level of top officers and executives.

Six Sigma is ________ approach.

continuous improvement

When the ABC Corporation makes decisions that assist it in formulating and implementing plans that are designed to achieve its objectives, it is most likely engaging in _________.

strategic management

Discuss how the self-fulfilling prophecy is created and how it can be used to improve individual and group productivity.

high managerial expectations foster high employee self- expectations. These expectations in turn lead to greater effort and better performance and yet higher expectations.

McClelland's research found that the Leader motive Profile included a

high need for power then need for achievement and then need for affiliation.

Interpersonal Value Conflict

occurs when combinations of instrumental and terminal values inevitably spark disagreements.

Intrapersonal Value Conflict

occurs when highly ranked instrumental and terminal values pull an individual in different directions.

Personal initiative

occurs when individuals go beyond formal job requirements and become active self-starters. Personal initiative is important in establishing trust with a manager and ensuring that he or she will think of you for developmental assignments to be delegated.

The 2-Shine Simon Ize-It Company wants to know the major favorable situations that exist in its environment. Essentially, the company wants to gain understanding of its _________.

opportunities page 140.

The Up and At 'Em Clock Company of Vermont recently began to provide its employees with training and development that is provided by a Boston-based firm. The company has found this new method to be cost effective and time saving. It can be stated that the Up and At 'Em Clock Company is engaging the use of ________.

outsourcing see the discussion under Outsourcing Functional Activities, page 274.

The ______ perspective sees multibusiness companies as creating value by influencing the businesses they own.

parenting framework see the discussion under The Corporate Parent Role: Can It Add Tangible Value? page 255.

Distributing rewards based on how well an employee cooperates with other employees is an example of the __________ distribution criteria.

performance/actions and behaviors

The Apple iPod is an example of a ______ innovation, while iTunes is an example of a _____ innovation.

product, service

Participative management can

promote perceptions of procedural justice, organizational commitment, and job involvement.

Alderfer's ERG Theory

proposed that motivation is a function of three basic needs listed here from lowest to highest. Existence: Desire for physiological and materialistic well-being Relatedness: Desire to have meaningful relationships with significant others Growth: Desire to grow and use one's abilities to their fullest potential

A(n) __________ represents an employee's beliefs about what he or she is entitled to receive in return for what he or she provides to the organization.

psychological contract

All of the following except _________ would be considered rationales for why an organization may wish to globalize its operations in the international marketplace.

realization of domination of the domestic market PG 118

Leon Festinger theorized that people will seek to __________ through one of three main methods: changing one's attitude, behavior or both; belittling the importance of the inconsistent behavior; or finding consonant elements that are more important.

reduce cognitive dissonance

The market share of a business divided by the market share of its largest competitor equals the business's ________.

relative competitive position the discussion under The BCG Growth-Share Matrix, page 244.

The _______ is a method of analyzing and identifying a firm's strategic advantages based on examining its distinct combination of assets, skills, capabilities, and intangibles as an organization.

resource-based view page 153.

Sustainable activities that provide all of the following opportunities relative to key industry forces except _________ should become the basis for differentiation aspects within the business's competitive strategy.

technological changes increase learning and investments page 219.

personnel selection researchers have found

verbal ability, numerical ability, spatial ability, and inductive reasoning to be valid predictors of job performance for both minority and majority applicants.

cognitive

- beliefs or ideas one has about an object.

Describe a company mission and explain its value

A broadly framed but enduring statement of a firm's intent. It is the unique purpose that sets a company apart from others of its type and identifies the scope of its operations in product, market, and technology terms. Why is this firm in business? What are our economic goals? What is our operating philosophy in terms of quality, company image, and self-concept? What are our core competencies and competitive advantages? What customers do and can we serve? How do we view our responsibilities to stockholders, employees, communities, environment, social issues, and competitors

Buyer Power

A buyer group is powerful if: It is concentrated or purchases in large volumes The products it purchases from the industry are standard The products it purchases from the industry form a component of its product and represent a significant fraction of its cost It earns low profits The industry's product is unimportant to the quality of the buyers' products or services The industry's product does not save the buyer money The buyers pose a credible threat of integrating backward

A baseball team is an example of a(n) __________ team.

ACTION

Resistance can be lowered by following these guidelines

Avoid surprises Promote real understanding Set the stage for change Make tentative change

Which of the following is most resistant to change?

Basic assumptions

Threats of punishment and actual punishment give an individual __________ power over others.

COERCIVE

The __________ influence tactic involves getting others to participate in planning, making decisions, and changes.

CONSULTATION

Jamie is a brand-new salesperson who has just graduated from college. Her first task is to sell consulting services to a new potential client. Based on your knowledge of social perception, which of the following would NOT be advised?

Check her cell phone to show that she is busy and important

__________ is a commonly used method to overcome resistance to change in situations where speed is essential and where the change initiators possess considerable power.

Explicit/implicit coercion

All but which one of the following would be considered a limiting factor or influence to a SWOT analysis?

It can recognize that a strength is always a source of competitive advantage. page 144.

Affirmative action is __________ driven.

LEGALLY

Other specific intelligence-related predictors of job performance are:

Numerical ability Spatial ability Inductive reasoning

A 65 year-old university student would be a salient stimulus.

TRUE

Which of the following is a characteristic of mechanistic organizations?

Top-down communication patterns.

Jason is highly committed to what he does for his company and also to what he wants to do with his company in the future. It can be stated that Jason has _______.

a leader's passion

The __________ is the feelings or emotions one has about an object or situation.

affective component

Intelligence is the

capacity for constructive thinking, reasoning, and problem solving.

A major drawback of the __________ method of stimulating functional conflict is that "winning the debate" may become more important than arriving at the best solution.

dialectic method

A business strategy that seeks to build competitive advantage with its product or service by having it be unique from other available competitive products would be classed as __________ strategy.

differentiation page 219.

Locke's Model of Goal Setting

directing attention, regulating effort, increasing persistence, and fostering strategies and plans. A Key term in this model is Persistence. Persistence represents the effort expended on a task over an extended period of time.

Regarding the Big Five personality dimensions, a person scoring high on __________ is outgoing, talkative, sociable, and assertive.

extraversion

One way to prevent groupthink is to

hold each member personally accountable for identifiable portions of the task.

The ________ structure is where the corporate entity is a broad collection of often unrelated businesses and divisions such that the corporate entity must act as a financial overseer.

holding company

Discuss Kotter's eight steps for leading organizational change.

1.Establish a sense of urgency-Unfreeze the organization by creating a compelling reason for why change is needed 2.Create the guiding coalition-Create a cross-functional, cross-level group of people with enough power to lead the change 3.Develop a vision and strategy-Create a vision and strategic plan to guide the change process 4.Communicate the change-vision-Create and implement a communication strategy that consistently communicates the new vision and strategic plan 5.Empower broad-based action-Eliminate barriers to change, use target elements of change to transform the organization 6.Generate short-term wins-Plan for and create short-term "wins" or improvements 7.Consolidate gains and produce more change-The guiding coalition uses credibility from short-terms wins to create change. Additional people are brought into the change process as change cascades throughout the organization 8.Anchor new approaches in the culture-Reinforce the changes by highlighting connections between new behaviors and processes and organizational success John Kotter believes that organizational change fails for one or more of eight common errors. He proposed eight steps that organizations should follow to overcome these errors.

The decision making hierarchy of a firm typically contains _______ levels.

3

Explain the difference between closed and open systems.

A closed system is a relatively self-sufficient entity An open system is an organism that must constantly interact with its environment to survive

Of the following statements, which one is least likely to be true regarding a company's statement of philosophy?

A company's statement of philosophy rarely if ever appears within the organization's mission statement. see the discussion under Company Philosophy, page 25.

"I intend to quit my job."

- Behavioral

"I believe working helps contribute to society."

- Cognitive

Decentralized decision making

- lower level managers are empowered to make important decisions

Centralized decision making

- top managers make all key decisions

Explain the OD process.

-DIAGNOSIS: What is the problem and it's causes - could you variety of data gathering techniques such as interviews, surveys, observation, etc. -INTERVENTION: What can be done to solve the problem? - determine the treatment that will actually address the cause of the problem -EVALUATION: Is the intervention working? - develop measures and metrics to monitor the impact of the change -FEEDBACK: What does the evaluation suggest about diagnosis and effectiveness of how the intervention was implemented?

Staying awake 24 hours impairs cognitive psychomotor performance to the same degree as having a _____% blood alcohol level.

.1

Contrast high and low self-monitoring individuals, and discuss the ethical implications of organizational identification.

A high self-monitor strives to make a good public impression by closely monitoring his or her behavior and adapting it to the situation. Very high self-monitoring can create a "chameleon" who is seen as insincere and dishonest. Low self-monitors do the opposite by acting out their momentary feelings, regardless of their surroundings. Very low self-monitoring can lead to a one-way communicator who seems to ignore verbal and nonverbal cues from others. People who supplant their own identity with that of their organization run the risk of blind obedience and groupthink because of a failure to engage in critical thinking and not being objective about what they are asked to do.

Define the term learning organization.

A learning organization proactively creates, acquires, and transfers knowledge throughout the organization These organizations constantly seek new information from the external environment and seek to develop their employees. They also pursue experts to employ and stay up to date on practices that affect their business.

Major issues in global strategic planning, including the differences for multinational and global firms

A multidomestic industry is one in which competition is essentially segmented from country to country In a multidomestic industry, a global corporation's subsidiaries should be managed as distinct entities A global industry is one in which competition crosses national borders Strategic management planning must be global

Of the following, which one would be considered incorrect when discussing the concept of a leader's business vision?

A strategic plan is needed more than a leader's vision in organizations desiring to globalize operations.

A synonym for the term "innovation" in the context of organizational innovation would be:

A) invention. B) creativity. C) integration. D) All of the above are correct. E) None of the above are correct. E

According to one expert, all of the following are recommendations for designing an effective web page except:

A)Images in the middle of the page can present an obstacle course B) Surfers connect will with images of people looking directly at them C) Individuals read Web pages in F pattern D) People respond to pictures that provide useful information. E) All of the above are correct E

Political behaviour and maneuvering is often triggered by uncertainty. Which of the following is not a source of uncertainty that may trigger such actions?

A)Unclear measures of performance. B) Any change taking place in the organization. C) High levels of competition among individuals or groups. D) Organizational objectives that are not clearly spelled out. E) All of these are sources of uncertainty that may trigger political behaviour and maneuvering. E

__________ is a goal incongruent emotion.

ANGER

State Thorndike's "law of effect," and explain Skinner's distinction between respondent and operant behavior.

According to Edward L Thorndike's law of effect, behavior with favorable consequences tends to be repeated, while behavior with unfavorable consequences tends to disappear. B F Skinner called unlearned stimulus-response reflexes respondent behavior. He applied the term operant behavior to all behavior learned through experience with environmental consequences.

TYPES OF ORGANIZATIONAL CHANGE Resistance to change increases as changes go from adaptive, to innovative, to radically innovative.

Adaptive change is lowest in complexity, cost, and uncertainty. Reintroducing a familiar practice. Innovative changes fall midway on the complexity, cost, and uncertainty continuum. Introducing a new practice to the organization. Radically Innovative Changes complexity, cost, and uncertainty are the highest. Introducing a practice to the industry.

"Working with my coworkers is frustrating." -

Affective

Which of the following is NOT one of the Generic Action Options for handling diversity according to R Roosevelt Thomas Jr.?

Affirmative Action

Explain the difference between affirmative action and managing diversity.

Affirmative action is an outgrowth of equal employment opportunity legislation and is an artificial intervention aimed at giving management a chance to correct past discrimination. Managing diversity entails creating a host of organizational changes that enable all people to perform up to their maximum potential.

List six antecedents of conflict, and identify the desired outcomes of conflict.

Among the many antecedents of conflict are incompatible personalities or value systems; competition for limited resources; inadequate communication; unreasonable or unclear policies, standards, or rules; unreasonable deadlines or extreme time pressure; collective decision making; unmet expectations; and unresolved or suppressed conflicts. The three desired outcomes of conflict are agreement, stronger relationships, and learning.

Behavioral and psychological characteristics that are usually associated with successful entrepreneurs include all but which one of the following?

An external locus of control

Of the following, which one is false regarding a functional organizational structure?

An organization using this type of structure has no need for integrating activities.

Which of the following Generic Action Options for handling diversity states that all diverse people will learn to fit in or become like the dominant group?

Assimilation

Explain, according to Kelley's model, how external and internal causal attributions are formulated.

Attribution theory attempts to describe how people infer causes for observed behavior. According to Kelley's model of causal attribution, external attributions tend to be made when consensus and distinctiveness are high and consistency is low. Internal (personal responsibility) attributions tend to be made when consensus and distinctiveness are low and consistency is high.

Major Lionel Minor began his own new home construction company when he retired from the Air Force five years ago. The company has rapidly grown to be very large and has reported earnings of over $40 million in the past year. Retired Major Minor attributes this high rate of success to his ability to service his customers at a low price. His organization has to meet several requirements in order to continually support and sustain this low-cost leadership status. Which of the following would not be one of these requirements?

Avoidance of economies of scale page 218.

The two types of innovations are incremental and ______.

BREAKTHROUGH

Explain how managers can prevent organizational decline.

Because complacency and organizational narcissim are the the leading causes of organizational decline, managers need to create a culture of continuous improvement. Decline automatically follows periods of great success if preventive steps are not taken to avoid the erosion of organizational resources (money, customers, talent, and innovative ideas).

What are the outcomes of Influence attempts

COMMITMENT - a strong positive response The person will agree and carry out the request because they truly believes it is the right or best thing to do. THIS IS THE BEST OUTCOME. COMPLIANCE - completion of request The person will agree only because there is something positive in it for him/her or something negative will happen if they don't RESISTANCE - a strong negative response Request will be disregarded, influence attempt is unsuccessful

Describe the four characteristics common to all organizations,

COORDINATION OF EFFORT, which is achieved through formulation and enforcement of policies, rules, and regulations DIVISON OF LABOR, where the COMMON GOAL is pursued by individuals performing separate but related tasks HIERARCHY OF AUTHORITY, which provides a control mechanism dedicated to making sure the right people do the right things at the right time.

Working allows me to afford what I want and need." -

Cognitive

Distinguish two types of group cohesiveness, and summarize cohesiveness research findings.

Cohesive groups have a shared sense of togetherness or a "we" feeling. Socio-emotional cohesiveness involves emotional satisfaction. Instrumental cohesiveness involves goal-directed togetherness. There is a small but significant relationship between cohesiveness and performance. The effect is stronger for smaller groups. Commitment to task among group members strengthens the cohesiveness-performance linkage. Success can build group cohesiveness. Cohesiveness is not a cure-all for group problems. Too much cohesiveness can lead to groupthink.

Describe a comprehensive model of strategic decision making

Company Mission External Analysis Long-Term Objectives Short-Term Objectives Policies Empowering Action Strategic Control & Continuous Improvement Internal Analysis Strategic Analysis & Choice Generic & Grand Strategies Functional Tactics Restructuring, Reengineering & Refocusing

The five factors in the operating environment (competitive or task environment)

Competitors Creditors Customers Laborers Suppliers

Competitive rivalry

Competitors are numerous or are roughly equal Industry growth is slow, precipitating fights for market share that involve expansion The product or service lacks differentiation or switching costs Fixed costs are high or the product is perishable, creating strong temptation to cut prices Capacity normally is augmented in large increments Exit barriers are high Rivals are diverse in strategy, origin, and personalit

consortia.

Consortia are defined as large interlocking relationships between businesses of an industry In Japan such consortia are known as keiretsus, in South Korea as chaebols Their cooperative nature is growing in evidence as is their market success

Functional tactics are different from business or corporate strategies in all but which one of the following ways?

Costs incurred see the discussion under Differences between Business Strategies and Functional tactics, page 271.

Identify the causes of counterproductive work behavior and measures to prevent it.

Counterproductive work behaviors (CWBs) may result from personal characteristics coupled with a lack of autonomy and job satisfaction. CWBs are more likely in situations where supervisors are abusive and responsible for many employees. Organizations can limit CWBs by hiring individuals with appropriate cognitive skills and personality traits. They can design jobs to promote satisfaction. They can develop managers to supervise effectively without abuse and should deliver immediate feedback and discipline if anyone engages in CWBs

Common phases of change are:

DENIAL - trouble accepting the inevitable SADNESS - realization of the things you'll miss RESISTANCE - may have a sense of turmoil and think of the impact on you and your family EXPLORATION - begin to consider and research the new reality to make yourself more comfortable ACEEPTANCE - consider the positive aspects of the change Remain Objective knowing these phases helps you keep perspective, talk to others if you feel yourself backsliding into earlier stages Stay Positive Focus on the impact on others and trying to help them Stay Accountable for Outcomes Focus on your work, prioritize, problem solve

_________________ is the money provided to the venture that must be repaid at some point in time.

Debt financing

What are unfavorable impression management tactics

Decreasing performance—restricting productivity, making more mistakes than usual, lowering quality, neglecting tasks. • Not working to potential—pretending ignorance, having unused capabilities. • Withdrawing—being tardy, taking excessive breaks, faking illness. • Displaying a bad attitude—complaining, getting upset and angry, acting strangely, not getting along with coworkers. • Broadcasting limitations—letting coworkers know about one's physical problems and mistakes, both verbally and nonverbally.

Howard Gardner's updated concept of multiple intelligences.

Disciplined Mind - requires of mastery of major subject areas Synthesizing mind - selects information from different sources and puts them together Creating mind - poses new questions, offers new solutions, and new ways of thinking Respectful mind - responds sympathetically and constructively to differences among individuals and groups Ethical mind - conceptualizes how to strive toward good work and good citizenship

Political constraints are placed on firms through a variety of avenues except which one of the following?

Discretionary responsibility page 84.

Explain the difference between distributive and integrative negotiation, and discuss the concept of added-value negotiation.

Distributive negotiation involves fixed-pie and win-lose thinking. Integrative negotiation is a win-win approach to better results for both parties. The five steps in added-value negotiation are as follows: step 1, clarify interests; step 2, identify options; step 3, design alternative deal packages; step 4, select a deal; and step 5, perfect the deal. Elements of value, multiple deal packages, and creative agreement are central to this approac

Explain the differences among distributive, procedural, and interactional justice.

Distributive, procedural, and interactional justice are the three key components underlying organizational justice. Distributive justice reflects the perceived fairness of how resources and rewards are distributed. Procedural justice represents the perceived fairness of the process and procedures used to make allocation decisions. Interactional justice entails the perceived fairness of a decision maker's behavior in the process of decision making.

Which one of the following would not be classed as one of the major trends driving decisions about effective organizational structures in the 21st century?

Diversity

Define diversity and review the four layers of diversity.

Diversity represents the individual differences that make people different from and similar to each other. Diversity pertains to everybody. It is not simply an issue of age, race, gender, or sexual orientation. The layers of diversity define an individual's personal identity and constitute a perceptual filter that influences how we interpret the world. Personality is at the center of the diversity wheel. The second layer of diversity consists of a set of internal dimensions that are referred to as surface-level dimensions of diversity. The third layer is composed of external influences and is called secondary dimensions of diversity. The final layer of diversity includes organizational dimensions.

Which type of organizational structure is best identified as having a set of relatively autonomous units or divisions that are governed by a central corporate office yet each unit or division has its own functional specialists who provide services or products that are different from the other units.

Divisional structure

Describe high-performance teams and discuss team leadership.

Eight attributes of high-performance teams are participative leadership, shared responsibility, aligned on purpose, high communication, future focused for growth, focused on task, creative talents applied, and rapid response. Leading a team is not the same as leading the individuals within it. Parallel sets of leadership skills are required. More emphasis is needed on team building, broader input, and group problem solving.

Identify eight important correlates/consequences of job satisfaction, and summarize how each one relates to job satisfaction.

Eight major correlates/consequences of job satisfaction are motivation (moderate positive relationship) job involvement (moderate positive) organizational citizenship behavior (moderate positive), absenteeism (weak negative) withdrawal cognitions (strong negative) turnover (moderate negative) perceived stress (strong negative) job performance (moderate positive).

The act of allowing an individual or team the right and flexibility to make decisions and initiate actions is best referred to as which one of the following?

Empowerment see the discussion under Empowering Operating Personnel: The Role of Policies, page 276.

Understand what policies are and how to use them to empower operating personnel

Empowerment is the act of allowing an individual or team the right and flexibility to make decisions and initiate action Policies are directives designed to guide the thinking, decisions, and actions of managers and their subordinates in implementing a firm's strategy Creating Policies That Empower Policies establish indirect control over independent action Policies promote uniform handling of similar activities Policies ensure quicker decisions by standardizing answers to recurring questions Policies institutionalize basic aspects of organization behavior Policies reduce uncertainty in repetitive and day-to-day decision making Policies counteract resistance Policies offer predetermined answers to routine problems Policies afford managers a mechanism for avoiding hasty decisions

There are several qualities the long-term objectives developed by Stormio should posses that will improve their chances of being attained. All of the following except _________ would be considered one of these necessary qualities.

Encompass a one-year time span page 180.

The five forces model of industry analysis and give examples

Entry Barriers Supplier Power Buyer Power Substitute availability Competitive rivalry

Discuss the role of perceived inequity in employee motivation.

Equity theory is a model of motivation that explains how people strive for fairness and justice in social exchanges. On the job, feelings of inequity revolve around a person's evaluation of whether he or she receives adequate rewards to compensate for his or her contributive inputs. People perform these evaluations by comparing the perceived fairness of their employment exchange with that of relevant others. Perceived inequity creates motivation to restore equity.

Which two of the Big Five personality traits were found to be the most stable?

Extraversion & Conscientiousness

Summarize the reasons why extrinsic rewards often fail to motivate employees.

Extrinsic reward systems can fail to motivate employees for these reasons: overemphasis on money no appreciation effect benefits become entitlements wrong behavior is rewarded rewards are delayed too long use of one-size-fits-all rewards one-shot rewards with temporary impact demotivating practices such as layoffs.

Distinguish between extrinsic and intrinsic rewards, and explain the four building blocks of intrinsic rewards and motivation

Extrinsic rewards—including pay, material goods, and social recognition—are granted by others. Intrinsic rewards are psychic rewards, such as a sense of competence or a feeling of accomplishment, that are self-granted and experienced internally. Ac cording to Thomas's model, the four basic intrinsic rewards are meaningfulness choice competence progress. Managers can boost intrinsic motivation by letting employees work on important whole tasks (meaningfulness), delegating and trusting (choice) providing challenge and feedback (competence) collaboratively celebrating improvement (progress).

A flight attendant crew is an example of a project team.

FALSE

According to French and Raven, an individual is using expert power when his or her charismatic personality is the reason for the compliance of others.

FALSE

According to the guidelines for SMART goals, the more vague the goal the more effective it is.

FALSE

According to the typology of change, innovative change involves introducing a practice that is new to the industry.

FALSE

According to your textbook, "participation" is the highest degree of empowerment.

FALSE

An organizational function of formal groups is to increase an individual's self-esteem and sense of identity.

FALSE

Personal feelings of self-esteem are an example of an extrinsic reward.

FALSE

Role conflict occurs when the expectations of the role senders exceed what the focal person is able to do.

FALSE

The "exchange" influence tactic involves getting others to support your effort to persuade someone to your point of view.

FALSE

The discrepancy models of job satisfaction propose that satisfaction is determined by the extent to which the characteristics of a job allow an individual to fulfill his or her needs.

FALSE

The encounter phase is the last stage in the organizational socialization process.

FALSE

Which one of the following would not be considered a basic type of strategic control?

Feedback control see the discussion under Establishing Strategic Controls, page 355.

Identify the two basic functions of feedback, and specify at least three practical lessons from feedback research.

Feedback, in the form of objective information about performance, both instructs and motivates. Feedback is not automatically accepted as intended, especially negative feedback. Managerial credibility can be enhanced through expertise and a climate of trust. Feedback must not be too frequent or too scarce and must be tailored to the individual. Feedback directly from computers is effective. Active participation in the feedback session helps people perceive feedback as more accurate. The quality of feedback received decreases as one moves up the organizational hierarchy.

Review the three caveats about culture change.

First, it is possible to change an organization's culture, and the process essentially begins with targeting one of the three layers of culture for change. Second, it is important to consider the extent to which the current culture is aligned with the organization's vision and strategic plans before attempting to change any aspect of organizational culture. Finally, it is important to use a structured approach when implementing culture change.

Intermittent Reinforcement Reinforcing some but not all instances of behavior.

Fixed ratio—piece-rate pay; bonuses tied to the sale of a fixed number of units. Variable ratio—slot machines that pay off after a variable number of lever pulls; lotteries that pay off after the purchase of a variable number of tickets. Fixed interval—hourly pay; annual salary paid on a regular basis. Variable interval—random supervisory praise and pats on the back for employees who have been doing a good job.

Describe the five qualities of long-term corporate objectives that make them useful to strategic managers

Flexible Measurable Motivating Suitable Understandable

Explain how goal setting motivates an individual and review the four practical lessons from goal-setting research.

Four motivational mechanisms of goal setting are as follows: (1) Goals direct one's attention (2) goals regulate effort (3) goals increase one's persistence (4) goals encourage development of goal-attainment strategies and action plans. Research identifies four practical lessons about goal setting. First, specific high goals lead to greater performance. Second, feedback enhances the effect of specific, difficult goals. Third, participative goals, assigned goals, and self-set goals are equally effective. Fourth, goal commitment and monetary incentives affect goal-setting outcomes.

Discuss the stress moderators of social support, hardiness, and Type A behavior.

Four types of social support are Esteem support, showing that a person is accepted and respected despite any problems or inadequacies. Informational support, providing help in defining, understanding, and coping with problems. Social companionship, spending time with others in leisure and recreational activities. And instrumental support, providing financial aid, material resources, or needed services. Three personality dimensions contribute to hardiness. Commitment, having a sense of purpose and not giving up under pressure. Internal locus of control. When we believe that we influence the events that affect our lives, we tend to develop proactive coping strategies. And challenge, where change is perceived as an opportunity for growth and development, and not as a threat. The Type A behavior pattern is characterized by someone who is aggressively involved in a chronic, determined struggle to accomplish more and more in less and less time. Management can help Type A individuals by not overloading them with work despite their apparent eagerness to take on an ever-increasing workload.

Which of the following is an example of a psychosocial function of mentoring?

Friendship. Research by Kathy Bram of Boston University indicates that the mentoring process has five career functions (sponsorship, exposure-and-visibility, coaching, protection, and challenging assignments) and four psychosocial functions (role modeling, acceptance-and-confirmation, counseling, and friendship).

Distinguish between functional and dysfunctional conflict, and discuss why people avoid conflict

Functional conflict enhances organizational interests while dysfunctional conflict is counterproductive. Three desired conflict outcomes are agreement, stronger relationships, and learning. People avoid conflict because of the following fears: harm, rejection, loss of relationship, anger, being seen as selfish, saying the wrong thing, failing, hurting someone else, getting what we want, and intimacy.

Illustrate what is meant by functional tactics and how they are used in strategy implementation

Functional tactics are the key, routine activities that must be undertaken in each functional area to provide the business's products and services In a sense, functional tactics translate thought into action Every value chain activity in a company executes functional tactics that support the business's strategy and help accomplish strategic objectives Functional tactics are different from business or corporate strategies in three fundamental ways: Time horizon Specificity Participants who develop them

Contrast the fundamental attribution bias and the self-serving bias.

Fundamental attribution bias involves emphasizing personal factors more than situational factors while formulating causal attributions for the behavior of others. Self-serving bias involves personalizing the causes of one's successes and externalizing the causes of one's failures.

Which of the following is an example of an organizational function of a formal group?

Generate new or creative ideas and solutions.

What are favorable impression management tactics

Getting others to see us in a certain manner. job-focused (manipulating information about one's job performance), supervisor-focused (praising and doing favors for one's supervisor), and self-focused (presenting oneself as a polite and nice person)

Which one of the following would not be considered a factor that contributes to the increase in the complexity found within today's global environment?

Global organizations are able to fully utilize differences in industry structures that are encountered. page 122.

Factors positively influenced by high OBSE and negatively impacted by low OBSE

Global self-esteem Job performance Intrinsic motivation General satisfaction Citizenship behavior Organizational commitment & satisfaction

According to the Model of Occupational Stress, __________ is an example of a group-level stressor.

HARRASSMENT

An internal locus of control should be tempered with ___________ so that healthy characteristics such as self-confidence, self-esteem, and self-assessment don't turn into over-confidence, narcissism, and stubbornness.

HUMILTY

Which of the following was not mentioned as a stress reduction technique in the discussion in the text?

HYPNOTISM

Seeds of innovation

Hard work in a specific direction - most innovations come from dedicated people working hard to solve a well-defined problem Hard work with direction change - innovations often occur when people change their approach to solving a problem Curiosity - curiosity spawns experimentation and inventiveness Wealth and money - innovations frequently occur because economic viability depends on it Necessity - required to achieve a larger goal Combination of seeds - often innovation is a result of multiple factors

Herzberg's Motivator-Hygiene Model

Hygiene Factors job characteristics associated with job dissatisfaction Salary Supervisory relations Working conditions Motivators job characteristics associated with job satisfaction Achievement Recognition Responsibility

A simple change in an existing product would be a _____ innovation.

INCREMENTAL

I want to be healthy by exercising regularly; I want to advance my career and be a good parent to my children

INTRAPERSONAL

Based on the self-fulfilling prophecy, which of the following would not be advised?

Identify errors in employee's performance, no matter how minor, and discuss them frequently

Process Theories Adam's Equity Vroom's Expectancy Goal Setting Theory

Identify the process by which internal factors and cognitions influence motivation

Which one of the following strategic controls would have the basic characteristics of a high degree of focusing, a high degree of formalization in data acquisition, can be used with company- and strategy-specific factors, and have key strategic thrusts and milestones as objects of control?

Implementation control see the discussion under Exhibit 13.1: Four Types of Strategic Control, page 356.

all of the following would represent possible threats to the 2-Shine Simon Ize-It Company except which one of the following?

Improved buyer or supplier relationships page 140.

What is the right combination of influence tatics?

In general, research has shown that the combined use of tactics is the most effective. Hard ones are most effective used by themselves. Also, it is better to use a combination of softer tactics first and use the hard one's only as a last resort. Research has shown that using expert and referent power together get the best combinaltion of results and favorable reactions from lower-level employees.

Which of the following is a typical managerial mistake leading to team failure?

Inadequate team skills training.

I want to be healthy; My organization values smoking

Individual-Organization Value Conflict

The attribution her supervisor is likely to make is...

Internal

Which of the following traits would predict motivation at work?

Internal locus of control

Discuss what can be done about cross-cultural conflict.

International consultants can prepare people from different cultures to work effectively together. Cross-cultural conflict can be minimized by having expatriates build strong cross-cultural relationships with their hosts (primarily by being good listeners, being sensitive to others, and being more cooperative than competitive).

I want to be honest by reporting company financials accurately; My coworker values a bonus that would come from adjusting the company financials.

Interpersonal Value Conflic

Explain intrapreneurship and how to enable it to thrive.

Intrapreneurship is entrepreneurship in large organizations. Many firms now claim that they seek to encourage intrapreneurship. For intrapreneurship to work, individual intrapreneurs need freedom and support to pursue perceived opportunities, be allowed to fail, and do more of the same more easily if they succeed.

Of the following, which one is least likely to be considered a strategic advantage derived from a matrix organizational structure?

It can trigger turf battles.

All of the following except which one would be classed as true statements regarding the matrix organizational structure?

It is fairly simple to implement within an organization.

Define the work attitudes of job involvement/employee engagement and job satisfaction.

Job involvement is the extent to which a person is preoccupied with, immersed in, and concerned with his/her job. Employee engagement is similar to job involvement and represents an individual's satisfaction, involvement, and enthusiasm for his/her work. Job satisfaction reflects how much people like or dislike their jobs.

bankruptcy

Liquidation bankruptcy—agreeing to a complete distribution of firm assets to creditors, most of whom receive a small fraction of the amount they are owed Reorganization bankruptcy—the managers believe the firm can remain viable through reorganization Two notable types of bankruptcy Chapter 7 Chapter 11

Internal Attribution

Low consensus Low distinctiveness High consistency

Nadia's performance is declining. Her peers performance hasn't changed, it is occurring on several tasks, and has occurred for the past six months. This represents:

Low consensus Low distinctiveness High consistency

The Grinder Up Corporation is a waste disposal business based in Santa Fe. This corporation possesses unique capabilities that assist it in being able to sustain its current market position. These capabilities include having secured suppliers of scarce raw materials, continuing dominance in its market, excellence at efficiencies, and a high degree of capitalization. It is most likely that Grinder Up engages in which one of the following strategies?

Low-cost leadership page 184.

three primary determinants of organization-based self-esteem.

Managerial respect Organizational structure Job complexity

Which one of the following grand strategies is noted as presenting products, often with only cosmetic modifications, to customers in related marketing areas?

Market development page 191.

Identify when each of the seven organization structures is the right fit.

Mechanistic organizations and functional structures may be necessary when tight control is important and the environment is stable. Organic organizations allow for innovation in a rapidly changing environment. Divisional structures are a good fit when the organization needs deep knowledge of varied customer groups and the ability to respond to customer demands quickly. A matrix organization can deliver the advantages of functional and divisional structures if the company has superior managers who communicate extensively, foster commitment and collaboration, and negotiate effectively to establish goals and priorities consistent with the organization's strategy. A horizontal design is a good fit when specialization is less important than the ability to respond to varied or changing customer needs. Hollow, modular, and virtual designs are best when organizations have suitable partners they trust; efficiency is very important; the organization can identify functions, processes, or product components to outsource; and in the case of a virtual organization, when the need to be met is temporary.

Distinguish between task and maintenance functions in groups.

Members of formal groups need to perform both task (goal-oriented) and maintenance (relationship-oriented) roles if anything is to be accomplished.

Which one of the following would not be considered a basic type of implementation control?

Milestone projectiles see the discussion under Implementation Control, page 358.

The four main strategic orientations of global firms

Minimal effect on the existing management orientation or on existing product lines Requires little change in management or operation Characterized by direct investment in overseas operations, including manufacturing plants The most involved level is characterized by a substantial increase in foreign investment, with foreign assets comprising a significant portion of total assets

The primary niche market approach for a company that wants to export is to do which one of the following?

Modify select product performance to meet special foreign demands page 128.

International Environment

Monitoring the international environment involves assessing each non-domestic market on the same factors that are used in a domestic assessment. While the importance of factors will differ, the same set of considerations can be used for each country. Economic, political, legal, and social factors are used to assess international environments. One complication to this process is that the interplay among international markets must be considered

The competitive strategies for firms in foreign markets

Niche Market Exporting Licensing and Contract Manufacturing Franchising Joint Ventures Foreign Branching Equity Investment Wholly Owned Subsidiary

Define organizational development.

OD applies behavioral science principles, methods, and theories adapted from the fields of psychology, sociology, education, and management to help it achieve its goals. Organization development is a set of tools or techniques that are used to implement planned organizational change. OD is broader in focus and has a diagnostic focus. OD is guided by a four-step process. The steps are (1) diagnosis, (2) intervention, (3) evaluation, and (4) feedback.

Briefly explain seven sources of power and influence available to every manager

ORGANIZATION POWER Position power Reward power Information power Punitive power PERSONAL INFLUENCE Expert influence Referent influence Peer influence

__________ occurs when organizational values or beliefs become part of one's self-identity.

Organizational identity

Along the continuum of employee empowerment, __________ occurs when managers and followers jointly make decisions.

PARTICIPATION

Which of the following is not a reason why employees resist change?

PAST FAILURES

_________ is a goal congruent emotion.

PRIDE

Describe perception in terms of the information-processing model.

Perception is a mental and cognitive process that enables us to interpret and understand our surroundings. Social perception, also known as social cognition and social information processing, is a four-stage process. The four stages are selective attention/comprehension encoding and simplification storage and retention retrieval and response. During social cognition, salient stimuli are matched with schemata, assigned to cognitive categories, and stored in long-term memory for events, semantic materials, or people.

Define the term performance management, distinguish between learning goals and performance outcome goals, and explain the three-step goal setting process.

Performance management is a continuous cycle of improving individual job performance with goal setting, feedback and coaching, and rewards and positive reinforcement. Learning goals encourage learning, creativity, and skill development. Performance outcome goals target specified end-results. The three-step goal-setting process includes (1) set goals that are SMART—specific, measurable, attainable, results oriented, and time bound (2) promote goal commitment with clear explanations, participation, and supportiveness (3) provide support and feedback by providing information, needed training, and knowledge of results.

Of the following, which one is best identified as the capacity to see a commitment through to completion long after most other people would have stopped trying?

Perseverance

Define personality conflicts, and explain how managers should handle them.

Personality conflicts involve interpersonal opposition based on personal dislike or disagreement (or as an outgrowth of workplace incivility). Care needs to be taken with personality conflicts in the workplace because of the legal implications of diversity, antidiscrimination, and sexual harassment. Managers should investigate and document personality conflict, take corrective actions such as feedback or behavior modification if appropriate, or attempt informal dispute resolution. Difficult or persistent personality conflicts need to be referred to human resource specialists or counselors.

Social Factors

Present in the external environment: Beliefs & Values Attitudes & Opinions Lifestyles Developed from: Cultural conditioning Ecological conditioning Demographic makeup Religion Education Ethnic conditioning.

Cognitive Appraisal of Stressors

Primary Appraisal determining whether a stressor is irrelevant, positive, or stressful Secondary Appraisal assessing what might and can be done to reduce stress

Economic Factors

Prime interest rates Inflation rates Trends in the growth of the gross national product Unemployment rates Globalization of the economy Outsourcing

__________ are fundamental personal standards that guide your sense of honesty, integrity, and ethical behavior.

Principles

A __________ developmental network is composed of a few weak ties from one social system such as an employer or professional association.

RECEPTIVE

According to Herzberg's motivator-hygiene model, which of the following is a motivator?

RECOGNITION

Which one of the following would not be classed as a necessary financial strength factor to be considered when a company is constructing its industry attractiveness-business strength matrix?

Sales volatility see the discussion under Exhibit 9.3: Factors Considered in Constructing an Industry Attractiveness-Business Strength Matrix, page 246.

A manager made the following work assignments based on her perception of her employee's needs. Sam - responsible for orienting new employees to the team; Rex - responsible for operations of an entire division; Jose - researcher in R & D. Which of the following pairs below is probably true?

Sam- power; Rex- achievement; Jose- affiliation; Sam - affiliation; Rex- power; Jose - achievement Sam - achievement, Rex - affiliation, Jose - power Sam - achievement; Rex - power; Jose - affiliation Answer: B

As a corporation grows into that of being a global operation, it can expect to undergo the need for various progressively involved strategy levels. At which level should a corporation most likely expect to face the challenge of foreign licensing and technology transfer?

Second level page 116.

Define social loafing, and explain how managers can prevent it.

Social loafing involves the tendency for individual effort to decrease as group size increases. This problem can be contained if the task is challenging and important individuals are held accountable for results and group members expect everyone to work hard. The stepladder technique, a structured approach to group decision making, can reduce social loafing by increasing personal effort and accountability.

Identify the four sociological criteria of a group, and discuss the impact of social networking on group dynamics.

Sociologically, a group is defined as two or more freely interacting individuals who share collective norms and goals and have a common identity. Social networking sites such as MySpace and Facebook have blurred the line between formal and informal groups by giving people unprecidented access to one's personal life. This has magnified the long-standing dilemma of how friendly managers should be with their direct reports. They are urged to compartmentalize their official and unofficial role

Determine why a business would choose a low-cost, differentiation, or speed-based strategy

Some low-cost advantages reduce the likelihood of buyers' pricing pressure Truly sustained low-cost advantages may push rivals into other areas New entrants competing on price must face an entrenched cost leader Low-cost advantages should lessen the attractiveness of substitute products Higher margins allow low-cost producers to withstand supplier cost increases Differentiation requires that the business have sustainable advantages that allow it to provide buyers with something uniquely valuable to them Differentiation usually arises from one or more activities in the value chain that create a unique value important to buyers A successful differentiation strategy allows the business to provide a product or service of perceived higher value to buyers at a "differentiation cost" below the "value premium" to the buyers. In other words, the buyer feels the additional cost to buy the product or service is well below what the product or service is worth compared with other available alternatives. Speed can be created by: Customer responsiveness Product development cycles Product or service improvements Speed in delivery or distribution Information Sharing and Technology Speed involves the availability of a rapid response to a customer by providing current products quicker, accelerating new-product development or improvement, quickly adjusting production processes, and making decisions quickly.

Describe the proactive personality and internal locus of control.

Someone with a proactive personality shows initiative, takes action, and perseveres to bring about change. People with an internal locus of control, such as entrepreneurs, believe they are masters of their own fate.

Organizational Structure Terms

Span of control The number of people reporting directly to a given manager Staff Personnel - denoted by dotted lines Provide research, advice, and recommendations to line managers Line managers - denoted by solid lines Have authority to make organizational decisions

The Ride 'Em Cowboy Western Wear Corporation of Houston is very efficient in maintaining low overhead costs. This corporation has excellent skills in operational efficiency and cost management. However it faces few sources of advantage within its industry, with most of those being quite small. Under which of the following industry environments is this corporation most likely to be placed?

Stalemate businesses see the discussion under BCG's Strategic Environments Matrix, page 245.

Discuss stereotypes and the process of stereotype formation.

Stereotypes represent grossly oversimplified beliefs or expectations about groups of people. Stereo typing is a four-step process that begins by categorizing people into groups according to various criteria. Next, we infer that all people within a particular group possess the same traits or characteristics. Then, we form expectations of others and interpret their behavior according to our stereotypes. Finally, stereotypes are maintained by (a) overestimating the frequency of stereotypic behaviors exhibited by others, (b) incorrectly explaining expected and unexpected behaviors, and (c) differentiating minority individuals from oneself. The use of stereotypes is influenced by the amount and type of information available to an individual and his or her motivation to accurately process information.

A clan culture has an internal focus and values flexibility rather than stability and control.

TRUE

Technological Factors

Technological forecasting helps protect and improve the profitability of firms in growing industries. It alerts strategic managers to impending challenges and promising opportunities. The key to beneficial forecasting of technological advancement lies in accurately predicting future technological capabilities and their probable impacts.

__________ refers to the idea that each employee should report to only one manager.

The Unity of command principle

Jerome Washington's company has decided to acquire two other businesses in order to increase its growth and earning potential. In essence, Jerome's company desires to become a multibusiness company. Which one of the following would be least likely to be considered another valid rationale for why the company would desire to take this action?

The company wants to be able to monopolize a portion of the market segment. see the discussion under The Portfolio Approach: A Historical Starting Point, page 243.

Decide when a business should diversify

The grand strategy selection matrix and model of grand strategy clusters are useful tools to help dominant product company managers evaluate and narrow their choices among alternative grand strategies Dominant product company managers who choose diversification or integration eventually create another management challenge

Distributive justice is defined as:

The perceived fairness of how resources and rewards are distributed

Which one of the following statements is least likely to represent a fundamental belief an organization would have to guide it in creating its mission statement? .

The primary products will be made available to the market at a price reflecting less than total cost so as to gain market share. Please see the discussion under Formulating a Mission, page 22.

Discuss the organizational practices used to effectively manage diversity as identified by R. Roosevelt Thomas, Jr.

There are many different practices organizations can use to manage diversity. R Roosevelt Thomas Jr identified eight basic responses for handling any diversity issue: include/exclude, deny, assimilate, suppress, isolate, tolerate, build relationships, and foster mutual adaptation. Exclusion, denial, assimilation, suppression, isolation, and toleration are among the least preferred options. Inclusion, building relationships, and mutual adaptation are the preferred strategies.

Smaller teams are more cohesive

True, smaller teams facilitate more interaction among members

liquidation

When liquidation is the grand strategy, the firm typically is sold in parts, only occasionally as a whole—but for its tangible asset value and not as a going concern Planned liquidation can be worthwhile

Strategic control is concerned with tracking a strategy

as it is being implemented see the discussion under Strategic Control, page 354.

The __________ style of handling dysfunctional conflict involves either passive withdrawal from the problem or active suppression of the issue.

avoiding

Apple's innovation with iPod and iTunes is a _______ innovation.

breakthrough innovation

Value similarity is the

degree of consensus among family members about family values (internal to the family).

According to Clayton Christensen, ________ revolutionize industries and create new ones.

disruptive technologies

One way managers can enhance socio-emotional cohesiveness is by

encouraging interaction and cooperation.

Family values are

enduring beliefs about the importance of family and who should play key family roles.

A corporation with a/an ________ is likely to adopt a global systems approach to its strategic decision making that empathizes global integration.

geocentric orientation page 119.

A/An ______ is one in which competition crosses national borders on a worldwide basis.

global industry page 124.

Self-censorship is a symptom of

groupthink.

Product development

involves the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels

Explain the concept of Mutuality of Interest

is balancing individual and organizational interests through win-win cooperation

Concentrated growth

is the strategy of the firm that directs its resources to the profitable growth of a dominant product, in a dominant market, with a dominant technology Concentrated growth strategies lead to enhanced performance Specific conditions favor concentrated growth The risks and rewards vary

All of the following would be considered reasons for why the industry attractiveness-business strength matrix offers improvement over the BCG matrix except _________.

it reduces the need for strategy formulation see the discussion under The Industry Attractiveness-Business Strength Matrix, page 245.

Describe how strategic decisions differ from other decisions that managers make

large-scale, future-oriented plans for interacting with the competitive environment to achieve company objectives. A strategy is a company's game plan.

The effort to familiarize future leaders with the skills important to the company and to develop exceptional leaders among the mangers employed is best known as __________.

leadership development

Explain the nature and practical significance of conflict triangles and alternative dispute resolution for third-party conflict intervention.

A conflict triangle occurs when one member of a conflict seeks the help of a third party rather than facing the opponent directly. Detriangling is advised, whereby the third-party redirects the disputants' energy toward each other in a positive and constructive manner. Alternative dispute resolution involves avoiding costly court battles with more informal and user-friendly techniques such as facilitation, conciliation, peer review, ombudsman, mediation, and arbitration.

Explain the generic strategies of low-cost leadership, differentiation, and focus

A core idea about how a firm can best compete in the marketplace. Striving for overall low-cost leadership in the industry. Low-cost producers usually excel at cost reductions and efficiencies They maximize economies of scale, implement cost-cutting technologies, stress reductions in overhead and in administrative expenses, and use volume sales techniques to propel themselves up the earning curve A low-cost leader is able to use its cost advantage to charge lower prices or to enjoy higher profit margins Striving to create and market unique products for varied customer groups through differentiation. Strategies dependent on differentiation are designed to appeal to customers with a special sensitivity for a particular product attribute By stressing the attribute above other product qualities, the firm attempts to build customer loyalty Often such loyalty translates into a firm's ability to charge a premium price for its product The product attribute also can be the marketing channels through which it is delivered, its image for excellence, the features it includes, and its service network Striving to have special appeal to one or more groups of consumers or industrial buyers, focusing on their cost or differentiation concerns. A focus strategy, whether anchored in a low-cost base or a differentiation base, attempts to attend to the needs of a particular market segment A firm pursuing a focus strategy is willing to service isolated geographic areas; to satisfy the needs of customers with special financing, inventory, or servicing problems; or to tailor the product to the somewhat unique demands of the small- to medium-sized customer The focusing firms profit from their willingness to serve otherwise ignored or underappreciated customer segments

divestiture

A divestiture strategy involves the sale of a firm or a major component of a firm When retrenchment fails to accomplish the desired turnaround, or when a nonintegrated business activity achieves an unusually high market value, strategic managers often decide to sell the firm Reasons for divestiture vary

Define 360-degree feedback, and summarize how to give good feedback in a performance management program.

A focal person receives anonymous 360- degree feedback from subordinates, the manager, peers, and selected others such as customers or suppliers. Good feedback is tied to performance goals and clear expectations, linked with specific behavior or results, reserved for key result areas, given as soon as possible, provided for improvement as well as for final results, focused on performance rather than on personalities, and based on accurate and credible information.

Supplier Power

A supplier group is powerful if: It is dominated by a few companies and is more concentrated than the industry it sells to Its product is unique or at least differentiated, or if it has built-up switching costs It is not obliged to contend with other products for sale to the industry It poses a credible threat of integrating forward into the industry's business The industry is not an important customer of the supplier group

Explain how a work group becomes a team.

A team is a mature group where leadership is shared, accountability is both individual and collective, the members have developed their own purpose, problem solving is a way of life, and effectiveness is measured by collective outcomes.

According to Management professor/consultant Fernando Bartolomé, all of the following except which are good guidelines to follow in building and maintaining trust.

A) Respect B) Predictability C) Communication D) Support E) All of these are among the guidelines mentioned E

Identify and describe four types of work teams.

Advice teams provide information for managerial decisions. Production teams perform an organization's day-today operations. Project teams apply specialized knowledge to solve problems needed to complete a specific project. Action teams are highly skilled and highly coordinated to provide peak performance on demand.

Summarize the balanced scorecard approach and how it integrates strategic and operational control.

An alternative approach linking operational and strategic control, developed by Harvard Business School professors Robert Kaplan and David Norton, is a system they named the balanced scorecard The balanced scorecard is a management system (not only a measurement system) that enables companies to clarify their strategies, translate them into action, and provide meaningful feedback The learning and growth perspective: How well are we continuously improving and creating value? The business process perspective: What are our core competencies and areas of operational excellence? The customer perspective: How satisfied are our customers? The financial perspective: How are we doing for our shareholders?

Determine good business strategies in fragmented and global industries

Bare Bones/No Frills Given the intense competition and low margins in fragmented industries, a "bare bones" posture—low overhead, minimum wage employees, tight cost control—may build a sustainable cost advantage in such industries. Broad-line global competition—directed at competing worldwide in the full product line of the industry, often with plants in many countries, to achieve differentiation or an overall low-cost position. 2. Global focus strategy—targeting a particular segment of the industry for competition on a worldwide basis. 3. National focus strategy—taking advantage of differences in national markets that give the firm an edge over global competitors on a nation-by-nation basis. 4. Protected niche strategy—seeking out countries in which governmental restraints exclude or inhibit global competitors or allow concessions, or both, that are advantageous to localized firms.

Demonstrate your knowledge of behavior shaping.

Behavior shaping occurs when closer and closer approximations of a target behavior are reinforced. In effect, the standard for reinforcement is made more difficult as the individual learns. The process begins with continuous reinforcement, which gives way to intermittent reinforcement when the target behavior becomes strong and habitual.

Building Empowerment Through Ownership

Believe in what you propose SR. management must be behind equity ownership and devote the necessary resources to sustaining it over time. Be patient because a transition to employee ownership takes time to "take" - maybe 1 to 2 years. Communicate the meaning of ownership Remind employees of their ownership with signs, banners, bulletin boards, company staionery, websites, speeches, informal talks. Share profit-and-loss information Employees are entitled to see all info about the company as long as it is aligned with SEC regulations Educate workers about company's financials, give business-literacy training Make it worthwhile financially Design the system to benefit the employees financially, increase people's shareholdings every hear of their tenure. Turn your owners into decision makers Give employees discretion in how they do their jobs and to act on ways to improve them. At Whole Foods, workers are responsible for hiring people into their work groups. They are paid based on team performance so employee want to ensure they get the best workers and are invested in achieving that.

Name the benefits and risks of a participative approach to strategic decision making

Benefits of Strategic Management Managers at all levels interact in planning and implementing strategy Similar to participative decision making Assessing strategy formulation requires looking at nonfinancial evaluations as well as financial ones Promoting positive behavioral consequences enables achievement of financial goals Risks of Strategic Management Managers' time away from other responsibilities Unrealistic expectations promised by strategy formulators Possible disappointment of participating subordinates if goal is not reached

All of the following except which one would be considered a weakness to a business such as the one owned by Simon Ize?

Brand name page 141.

Which level of the decision making hierarchy is best identified as being composed principally of business and corporate mangers who must translate the statements of direction and intent into concrete objectives and strategies for the individual business units?

Business level

The market requirements and product characteristics in global competition

Businesses have discovered that being successful in foreign markets often demands much more than simply shipping their well-received domestic products overseas Firms must assess two key dimensions of customer demand: customers' acceptance of standardized products The rate of product innovation desired Products can be arrayed along a continuum from products that are not subject to frequent product innovations to products that are often upgraded

Which one of the following statements would be considered false about the concept of competitive advantage?

Businesses that engage other than a low-cost strategy usually experience below-average profitability. page 215.

Substitute availability

By placing a ceiling on the prices it can charge, substitute products or services limit the potential of an industry Substitutes not only limit profits in normal times but also reduce the bonanza an industry can reap in boom times Substitute products that deserve the most attention strategically are those that are subject to trends improving their price-performance trade-off with the industry's product or produced by industries earning high profits

Give examples of the newest trends in mission statement components: customer emphasis, quality, and company vision

CUSTOMER EMPHASIS A focus on customer satisfaction causes managers to realize the importance of providing quality customer service. Strong customer service initiatives have led some firms to gain competitive advantages in the marketplace. Hence, many corporations have made the customer service initiative a key component of their corporate mission. QUALITY Deming's 14 Points: Create constancy of purpose. Adopt the new philosophy. Cease dependence on mass inspection to achieve quality. End the practice of awarding business on price tag alone. Instead, minimize total cost, often accomplished by working with a single supplier. Improve constantly the system of production and service. Institute training on the job. Institute leadership. Drive out fear. Break down barriers between departments. Eliminate slogans, exhortations, and numerical targets. Eliminate work standards (quotas) and management by objective. Remove barriers that rob workers, engineers, and managers of their right to pride of workmanship. Institute a vigorous program of education and self-improvement. Put everyone in the company to work to accomplish the transformation. VISION FORD MOTOR COMPANY CORPORATE VISION Ford Motor Company's vision is to become the world's leading consumer company for automotive products and services. GENERAL ELECTRIC CORPORATE VISION We bring good things to life. MAGNA CORPORATE VISION Magna's corporate vision is to provide world class services that help maximize the customers ROI (Return on Investment) and promote teamwork and creativity. The company strongly believes in the corporate philosophy of fulfilling its commitments to its customers. MICROSOFT CORPORATE VISION Microsoft's vision is to enable people and businesses throughout the world to realize their full potential.

Summarize the methods used by organizations to change organizational culture.

Changing culture amounts to teaching employees about the organization's preferred values, beliefs, expectations, and behaviors. This is accomplished by using one or more of the following 11 mechanisms: (a) formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection, and socialization (b) the design of physical space, work environments, and buildings (c) slogans, language, acronyms, and sayings (d) deliberate role modeling, training programs, teaching, and coaching by managers and supervisors (e) explicit rewards, status symbols, and promotion criteria; (f) stories, legends, and myths about key people and events (g) the organizational activities, processes, or outcomes that leaders pay attention to, measure, and control (h) leader reactions to critical incidents and organizational crises (i) the workflow and organizational structure (j) organizational systems and procedures (k) organizational goals and associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people.

Discuss the importance of company philosophy, public image, and company self-concept to stockholders

Company philosophy is often called company creed. Usually accompanies or appears within the mission statement Reflects the basic beliefs, values, aspirations, and philosophical priorities to which strategic decision makers are committed in managing the company Public Image Both present and potential customers attribute certain qualities to particular businesses. Firms seldom address the question of their public image in an intermittent fashion. Firms should be concerned with their public image even when there is no public agitation. Company Self-Concept A major determinant of a firm's success is the extent to which the firm can relate functionally to its external environment. The ability of firms to survive in a dynamic and highly competitive environment would be severely limited if they did not understand their impact on others or of others on them. Ordinarily, descriptions of the company self-concept per se do not appear in mission statements.

concentric diversification

Concentric diversification involves the acquisition of businesses that are related to the acquiring firm in terms of technology, markets, or products With this grand strategy, the selected new businesses possess a high degree of compatibility with the firm's current businesses The ideal concentric diversification occurs when the combined company profits increase the strengths and opportunities and decrease the weaknesses and exposure to risk

Define the term conflict, and put the three metaphors of conflict into proper perspective for the workplace.

Conflict is a process in which one party perceives that its interests are being opposed or negatively affected by another party. Conflict is inevitable but not necessarily destructive. Metaphorically, conflict can be viewed as war (win at all costs), an opportunity (be creative, grow, and improve), or a journey (a search for common ground and a better way). Within organizations, we are challenged to see conflicts as win-win opportunities and journeys rather than as win-lose wars.

At which hierarchy level would the decisions made be more value-oriented, more conceptual, and less concrete?

Corporate level

Understand the types of strategic decisions for which different managers are responsible

Corporate level: board of directors, CEO & administration [Highest] Business level: business and corporate managers [Middle] Functional level: Product, geographic, and functional area managers [Lowest]

How does one manage organizational politics.

Create and open-book management system Make sure every employee knows how the business works and has a personal line of sight to key results Have nonfinancial people interpret periodic financial and accounting statements for all employees Since organizational politics cannot be eliminated, managers need to keep it within reasonable bounds. Measurable objectives for personal accountability are key. Participative management also helps, especially in the form of open-book management. Formal conflict resolution and grievance programs are helpful. Overly political people should not be hired, and employees who get results without playing political games should be publicly recognized and rewarded. The "how-would-it-look-on-TV" ethics test can limit political maneuvering.

Of the following, which one is least likely to be considered a critical task associated with an organization's strategic management process?

Decreasing the levels of hierarchy present within the company's management structure

Process Enablers:

Design: The comprehensiveness of the specification of how the process is to be executed Performers: The people who execute the process, particularly in terms of their skills and knowledge Owner: A senior executive who has responsibility for the process and its results Infrastructure: information and management systems that support the process Metrics: The measure the company uses to track the process's performance

Of the following, which one is least likely to be classed as creating or contributing to the control problems a global firm may face?

Different financial environments simplify the various sources of finance page 123.

The Denard Corporation currently possesses a low share of its available market. Additionally, this company's portfolio reveals it has extremely low market growth. This business is most likely to be classed as which one of the following according the BCG growth-share matrix?

Dog see the discussion under The BCG Growth-Share Matrix, page 244

Identify requirements for business success at different stages of industry evolution

EMERGING INDUSTRIESare newly formed or re-formed industries that typically are created by technological innovation, newly emerging customer needs, or other economic or sociological changes There are no "rules of the game" For success in this industry setting, business strategies require one or more of these features: The ability to shape the industry's structure The ability to rapidly improve product quality and performance features Advantageous relationships with key suppliers and promising distribution channels The ability to establish the firm's technology as the dominant one The early acquisition of a core group of loyal customers and then the expansion of that customer base The ability to forecast future competitors GROWTH INDUSTRIES For success in this industry setting, business strategies require one or more of the following features: The ability to establish strong brand recognition The ability and resources to scale up to meet increasing demand Strong product design skills to be able to adapt products and services The ability to differentiate the firm's product[s] from competitors entering the market R&D resources and skills to create product variations The ability to build repeat buying from established customers Strong capabilities in sales and marketing MATURE INDUSTRIES Strategy elements of successful firms in maturing industries often include the following: Product line pricing Emphasis on process innovation that permits low-cost product design, manufacturing methods, and distribution synergy Emphasis on cost reduction Careful buyer selection to focus on buyers who are less aggressive, more closely tied to the firm, and able to buy more from the firm Horizontal integration to acquire rival firms whose weaknesses can be used to gain a bargain price International expansion to markets where attractive growth and limited competition still exist DECLINING INDUSTRIES Declining industries are those that make products or services for which demand is growing slower than demand in the economy as a whole or is actually declining Focus on higher growth or a higher return Emphasize product innovation and quality improvement Emphasize production and distribution efficiency Gradually harvest the business FRAGMENTED INDUSTRIES A fragmented industry is one in which no firm has a significant market share and can strongly influence industry outcomes Tightly managed decentralization "Formula" facilities Increased value added Specialization Bare bones/no frills GLOBAL INDUSTRIES A global industry is one that comprises firms whose competitive positions in major geographic or national markets are fundamentally affected by their overall global competitive positions License foreign firms to produce and distribute the firm's products Maintain a domestic production base and export products to foreign countries Establish foreign-based plants and distribution to compete directly in the markets of one or more foreign countries

In the __________ phase of the organizational socialization process, employees begin to learn what the organization is really like. This phase begins when the employment contract is signed.

ENCOUNTER

Which source of power would be most applicable when influencing the following targets? Your manager

EXPERT AND REFERENT (PERSONAL POWER)

Discuss the external and internal forces that create the need for organizational change.

EXTERNAL Demographic characteristics Technological advancements Shareholder, Customer, and Market changes Social and political pressures INTERNAL Human resource problems High turnover Perceptions of unfair treatment Managerial Behavior/Decisions Excessive interpersonal conflict Inadequate direction or support

Explain Schwartz's value theory and describe three types of value conflict.

Each value possesses motivational mechanisms that drive behavior. POWER ACHIEVEMENT HEDONISM STIMULATION SELF DIRECTION UNIVERSAL ISM BENEVOLENCE TRADITION CONFORMITY SECURITY Some are consistent and positively related, whereas others are inconsistent and conflict with each other. Three types of value conflict are intrapersonal, interpersonal, and individual-organization.

Explain why Alice Eagly and Linda Arlie believe that a women's career is best viewed as traveling through a labyrinth.

Eagly and Carli believe that women were barred from achieving high-level managerial positions in the past, but that women now have busted through these barriers. They cite statistics showing that women have made progress in terms of obtaining CEO positions, managerial and administrative positions, and educational attainment; holding seats on boards of directors; obtaining leadership positions in educational institutions; and receiving federal court appointments. Eagly and Carli propose that women have made these strides by successfully navigating a labyrinth of twists, turns, and obstacles.

The construction company owned by Tom and Adam Smith - T & A Contracting- faces many challenges posed by its external environment. Of the following, which factor is most likely to be classed as belonging in the remote environment of T & A Contracting?

Ecological page 81.

Ecological Factors

Ecology refers to the relationships among human beings and other living things and the air, soil, and water that supports them. Threats to our life-supporting ecology caused principally by human activities in an industrial society are commonly referred to as pollution Loss of habitat and biodiversity Environmental legislation Eco-efficiency

________ factors concern the nature and direction of the economy in which a firm operates.

Economic page 82.

Five factors in the remote environment

Economic Factors Social Factors Political Factors Technological Factors Ecological Factors

Explain the value of passion and selection/development of new leaders in shaping an organization's culture

Education and leadership development is the effort to familiarize future leaders with the skills important to the company and to develop exceptional leaders among the managers you employ Perseverance is the capacity to see a commitment through to completion long after most people would have stopped trying Principles are your fundamental personal standards that guide your sense of honesty, integrity, and ethical behavior Passion, in a leadership sense, is a highly motivated sense of commitment to what you do and want to do Leaders also use reward systems, symbols, and structure among other means to shape the organization's culture Leaders look to managers they need to execute strategy as another source of leadership to accept risk and cope with the complexity that change brings about

Which of the following is identified as an early warning sign of decline in the text?

Effective communication if decreased. B) Goals are not clear and decision benchmarks are not present. C) Administrative procedures become a burden and are cumbersome. D) Answer selections A and C only. E) All of these are early warning signs of decline. E

Describe four ways leaders influence culture

Emphasize key themes or dominant values Encourage dissemination of stories and legends about core values Institutionalize practices that systematically reinforce desired beliefs and values Adapt some very common themes in their own unique ways Manage organizational culture in a global organization: Social norms Values and attitudes Religion Education

Discuss employee assistance programs (EAPs) and a holistic approach toward stress reduction.

Employee assistance programs help employees to resolve personal problems that affect their productivity. EAPs are typically funded by organizations or in combination with unions. A holistic approach toward wellness goes beyond stress-reduction techniques by advocating that people strive for a harmonious balance among physical, mental, and social well-being. This approach to stress management has five key components: self-responsibility, nutritional awareness, stress reduction and relaxation, physical fitness, and environmental sensitivity.

Describe the practical lessons derived from equity theory.

Equity theory has at least six practical implications. First, managers should pay attention to employees' perceptions of what is fair and equitable. It is the employee's view of reality that counts when trying to motivate someone, according to equity theory. Second, employees should be given a voice in decisions that affect them. Third, employees should be given the opportunity to appeal decisions that affect their welfare. Fourth, managers can promote cooperation and teamwork among group members by treating them equitably. Fifth, treating employees inequitably can lead to litigation and costly court settlements. Sixth, perceptions of justice are influenced by the leadership behavior exhibited by managers. Finally, managers need to pay attention to the organization's climate for justice because it influences employee attitudes and behavior.

Discuss the difference between espoused and enacted values.

Espoused values represent the explicitly stated values and norms that are preferred by an organization. Enacted values, in contrast, reflect the values and norms that actually are exhibited or converted into employee behavior. Employees become cynical when management espouses one set of values and norms and then behaves in an inconsistent fashion.

Explain Vroom's expectancy theory and review its practical implications., racial and ethnic, and disability stereotypes.

Expectancy theory assumes motivation is determined by one's perceived chances of achieving valued outcomes. Vroom's expectancy model of motivation reveals how effort—^performance expectancies and performance—^outcome instrumentalities influence the degree of effort expended to achieve desired (positively valent) outcomes. Managers are advised to enhance effort—^performance expectancies by helping employees accomplish their performance goals. With respect to instrumentalities and valences, managers should attempt to link employee performance and valued rewards.

Employees working in organizations with hierarchical or market-based cultures reported lower job satisfaction and organizational commitment, but have greater intention to keep their jobs.

FALSE

Enacted values represent the explicitly stated values and norms that are preferred by an organization.

FALSE

In the four-phase process of social information processing, the encoding stage involves storing information in long-term memory.

FALSE

One of the five steps in the evolution of a team is when accountability becomes very individualized rather than collective accountability.

FALSE

Researchers concluded that competition is superior to cooperation in promoting achievement and productivity.

FALSE

According to the job characteristics model, __________ represents the extent to which an employee receives direct and clear information about how effectively he or she is performing the job.

FEEDBACK

Describe seven basic ways organizations are structured.

FUNCTIONAL Organized according to business function (marketing, finance, etc.) DIVISIONAL STRUCTURE Organized by activities related to outputs (e.g., product or service type) MATRIZ STRUCTURE Horizontal cooperation necessary as is functional knowledge Typically organized by function vertically and product/service horizontally HOLLOW Outsourcing non-core processes to those more able - retain what you do well and outsource functions that others can do faster and cheaper MODULAR Outsources parts of a product rather than processes - ensure quality meets standards from other companies but assemble parts internally VIRTUAL Temporary company created to respond to an exceptional market opportunity - creates partnerships that help serves customers they wouldn't be able to without each other HORIZONTAL DESIGN FOR COLLABORATION Organize around complete workflow processes rather than tasks Flatten hierarchy and use teams to manage everything Appoint process team leaders to manage internal team processes. Let supplier and customer contact drive performance. Provide required expertise from outside the team as required.

The most prominent factor found in the remote environment of businesses is most often that of the reciprocal relationship between those businesses and the ecology. Specific ecological concerns focus on all but which one of the following?

Fair labor standards page 87.

Political Factors

Fair-trade Decisions Antitrust Laws Tax Programs Minimum Wage Legislation Pollution and Pricing Policies Administrative jawboning

A day off with pay that occurs one time only intended to allow the employee to recommit to the organization's values and mission is known as the dialectic method.

False

Ideally, an organization should experience no conflict.

False

Maslow viewed esteem as the highest step in his proposed hierarchy of needs.

False

The obliging (smoothing) style of handling dysfunctional conflict is appropriate for complex issues where the chance of misunderstanding is high.

False

External threats hurt team cohesiveness

False, perceptions of an external threat, tend to make teams bond more closely together. Military teams are a good example of this, or a competitor coming out with a new product may energize teams. Another example is when all the members of congress joined together to sing the America the Beautiful right after 9/11.

The strategy embraced by the Kun-Pow Fortune Cookie Company of Memphis strives to address the needs of a very select and specialized market segment. Kun-Pow is most likely to engage in which one of the following types of strategy?

Focus

Why is delegation the highest form of empowerment and discuss the connections among delegation, trust and personal inititative.

Followers are granted authority to make a decision. When the employee is competent, the employee shares the manager's task objectives, the manager has a long-standing and positive relationship with the employee, and when the lower-level person was also a supervisor. The manager has trust with the employee Delegation gives employees more than a participatory role in decision making. It allows them to make their own work-related decisions. Managers tend to delegate to employees they trust. Employees can get managers to trust them by demonstrating personal initiative (going beyond formal job requirements and being self-starters).

________ refers to the degree in which participants, responsibilities, authority, and discretion in decision making are specified.

Formality

Describe the four functions of organizational culture.

Four functions of organizational culture are organizational identity collective commitment social system stability, sense-making device.

Describe the values model of work/family conflict, and specify at least three practical lessons from work/family conflict research.

General life values determine one's values about family and work. Work/family conflict can occur when there is a lack of value similarity with family members. Likewise, work/family conflict can occur when one's own work values are not congruent with the company's values. When someone does not attain his or her values because of work/family conflicts, job or life satisfaction, or both, can suffer. Six practical lessons from work/family conflict research are (1) work/family balance begins at home (2) an employer's family-supportive philosophy is more important than specific programs (3) informal flexibility in work hours and in allowing people to work at home is essential to promoting work/family balance (4) mentors can help (5) individuals should take a proactive approach to managing work/family conflict (6) self-employment has its rewards, but it is associated with higher work/family conflict and lower family satisfaction.

The importance of a company's decision to globalize

Globalization refers to the strategy of pursuing opportunities anywhere in the world that enable a firm to optimize its business functions in the countries in which it operates. Awareness of the strategic opportunities faced by global corporations and of the threats posed to them is important to planners in almost every domestic U.S. industry Understanding the nuances of competing in global markets is rapidly becoming a required competence of strategic managers U.S. firms often can reap benefits from industries and technologies developed abroad Direct penetration of foreign markets can drain vital cash flows from a foreign competitor's domestic operations The resulting lost opportunities, reduced income, and limited production can impair the competitor's ability to invade U.S. markets

Describe the four generic organizational effectiveness criteria.

Goal Accomplishment the organization achieves its goals—most widely used effectiveness criterion Does the organizations achieve its publicly stated goals and objectives? Resource acquisition: Does the organization acquire the necessary resources to pursue it's objectives? Internal Processes the organization functions smoothly with a minimum of internal strain Is the organization a "healthy system" in which information flows freely and employees are loyal, committed, satisfied and trusted. Strategic Constituencies Satisfaction the demands and expectations of key interest groups are at least minimally satisfied Are people who have a stake in the organization's operation or success satisfied.

Identify the four key components of emotional intelligence, and discuss the practical significance of emotional contagion and emotional labor.

Goleman's model says the four components are self-awareness self-management social awareness relationship management. People can, in fact, catch another person's good or bad moods and expressed emotions, much as they would catch a contagious disease. Managers and others in the workplace need to avoid spreading counterproductive emotions. People in service jobs who are asked to suppress their own negative emotions and display positive emotions, regardless of their true feelings at the time, pay a physical and mental price for their emotional labor. Managers who are not mindful of emotional labor may experience lower productivity, reduced job satisfaction, and possibly aggression and even violence.

Describe groupthink, and identify at least four of its symptoms

Groupthink plagues cohesive in-groups that shortchange moral judgment while putting too much emphasis on unanimity. Symptoms of groupthink include invulnerability inherent morality rationalization stereotyped views of opposition self-censorship illusion of unanimity peer pressure mindguards. Critical evaluators, outside expertise, and devil's advocates are among the preventive measures recommended by Irving Janis, who coined the term groupthink.

The __________ perceptual error represents the tendency to form an overall impression about a person and then use that impression to bias ratings about the person.

HALO

Identify at least five of Gardner's eight multiple intelligences, and explain "practical intelligence."

Harvard's Howard Gardner broadens the traditional cognitive abilities model of intelligence to include social and physical abilities. His eight multiple intelligences include linguistic logical-mathematical musical bodily-kinesthetic spatial interpersonal intrapersonal naturalist.

Explain the practical significance of Herzberg's distinction between motivators and hygiene factors.

Herzberg believes job satisfaction motivates better job performance. His hygiene factors, such as policies, supervision, and salary, erase sources of dissatisfaction. On the other hand, his motivators, such as achievement, responsibility, and recognition, foster job satisfaction. Although Herzberg's motivator-hygiene theory of job satisfaction has been criticized on methodological grounds, it offers practical advice for motivating employees.

External Attribution

High consensus High distinctiveness Low consistency

Managers who are in charge of the success of an organization's strategy typically are concerned with all but which one of the following?

How are we doing in comparison to our closest competitor?see the discussion under Strategic Control, page 354.

Summarize the risks associated with an incremental versus a breakthrough approach to innovation.

Incremental business process innovations can generate more revenue gain or cost savings with less risk than radical ones Radical innovations are often too radical

Summarize the difference between incremental and breakthrough innovation.

Incremental innovation refers to simple changes or adjustments in existing products, services, or processes A breakthrough innovation is an innovation in a product, process, technology, or the cost associated with it that represents a quantum leap forward in one or more of those ways the difference is a breakthrough innovation is more riskier and more elaborate.

The four major types of stressors are

Individual, those directly associated with job duties, such as role ambiguity or overload, eye strain from computers, or freezing from being a snow plow operator in sub-zero temperatures. Group, which are caused by group dynamics or managerial behavior or harrassment. Organizational, which are caused by factors associated with, for example, the organizational culture; and Extra-organizational, those factors outside the organization such as work/family balance issues or socioeconomic status.

Defining the boundaries of an industry can be a very difficult task. This difficulty stems from all of the following except which one?

Industries are very static in nature. see the discussion under Problems in Defining Industry Boundaries, page 100.

Explain the model of innovation.

Innovation is a dynamic process that involves the simultaneous effects of seeds of innovation and challenges of innovation. That said, the benefits of innovation only occur when the interaction between seeds and challenges is nurtured by the nutrients of innovation, which include organizational culture, leadership, people, and execution.

Discuss the difference between innovation, invention, creativity, and integration.

Innovation is creating something new that is commercialized. In contrast, invention is simply the creation of something new and creativity is the process of developing something new or unique. Integration involves actions associated with getting multiple people, units, departments, functions, or sites to work together in pursuit of a goal, idea, or project. Innovation relies on invention, creativity, and integration.

Explain how attitudes affect behavior in terms of Ajzen's theory of planned behavior.

Intentions are the key link between attitudes and behavior in Ajzen's model. Three determinants of the strength of an intention are one's attitude toward the behavior subjective norm (social expectations and role models) the perceived degree of one's control over the behavior. Intentions, in turn, are powerful determinants of behavior.

Identify the limitations and weaknesses of the various portfolio approaches

It does not address how value is being created across business units Truly accurate measurement for matrix classification was not as easy as the matrices portrayed The underlying assumption about the relationship between market share and profitability varied across industries and market segments The limited strategic options came to be seen more as basic strategic missions It ignored capital raised in capital markets It typically failed to compare the competitive advantage a business received from being owned by a particular company with the costs of owning it

Which one of the following would not be considered a contribution to strategic analysis through the organizations' use of the portfolio approach?

It does not address how value is created across business units. see the discussion under Limitations of Portfolio Approaches, page 248.

the tangible assets of a firm such as Gary's Two-Can Tan Company would include all but which one of the following?

Its trademark. page 154.

Which of the following is not one of the key motivational approaches to job design discussed in the text?

JOB ORGANIZATION

Describe Lewin's change model and the systems model of change.

Kurt Lewin developed a three-stage model of planned change which explained how to initiate, manage, and stabilize the change process. Unfreezing Creates the motivation to change Benchmarking Data Financial data, emerging trends Changing Provides new information, new behavioral models, or new ways of looking at things Refreezing Helps employees integrate the changed behavior or attitude into their normal way of doing things A systems model of change takes a big picture perspective of change. It focuses on the interaction among the key components of change. The three main components of change are inputs, target elements of change, and outputs. The target elements of change represent the components of an organization that may be changed. They include organizational arrangements, social factors, methods, and people.

Which source of power would be most applicable when influencing the following targets? Your peers/co-worker

LEGITIMATE, EXPERT, AND REFERENT

Principles of Influence

LIKING: The more we like the other person, the more likely we'll comply with their requests RECIPROCITY: The belief that both good and bad deeds should be repaid in kind. SOCIAL PROOF: Role models and peer pressure are powerful forces CONSISTENCY: Once individuals have stated a commitment they tend to act in accordance with that commitment. AUTHORITY: People tend to defer to and respect credible experts. SCARICTY: Requests that emphasize scarcity or the fact that some object, opportunity, or outcome will soon no longer be available, are difficult to resist.

Summarize the practical contingency management implications for group size.

Laboratory simulation studies suggest decision-making groups should be limited to five or fewer members. Larger groups are appropriate when creativity, participation, and socialization are the main objectives If majority votes are to be taken, odd-numbered groups are recommended to avoid deadlocks.

Explain how vision and performance help leaders clarify strategic intent

Leaders help their company embrace change by setting for their strategic intent—a clear sense of where they want to lead the company and what results they expect to achieve Leader's vision—an articulation of a simple criterion or characterization of what the leader sees the company must become to establish and sustain global leadership Make clear the performance expectations a leader has for the organization, and managers in it, as they seek to move toward that vision

Enterprise Capabilities:

Leadership: Senior executives who support the creation of processes Culture: The values of customer focus, teamwork, personal accountability, and a willingness to change Expertise: Skills in, and methodology for, process redesign Governance: Mechanisms for managing complex projects and change initiatives

Converging Learning Style

Like to ask "how" Prefer to focus on specific, practical problems Prefer deductive reasoning (using general principles to understand specifics)

Diverging Learning Style

Like to ask "why" and to study problems from different angles Are people-oriented and prefer to explore situations from a solid base of information Like to brainstorm and deal with feelings

Employees with a clear _______ understand the organization's strategic goals and know what actions they need to take, both individually and as team members.

Line of sight

Explain four strategy-culture situations

Link to mission Maximize synergy Manage around the culture Reformulate strategy or culture

Research on lying has revealed these four lessons:

Lying is difficult to detect on the interpersonal level Lying is partly caused y structural constraints and conflicts. Lying is partly caused by individual differences Lying is partly caused by reward structures. Managers are faced with many circumstances in which they may be tempted to lie - this table shows the consequences of lying in each of four situations. Generally, lying hurts one's reputation and long-term relationship with others. One exception may be in the situation where you are holding someone's confidence. To the extent that it is truly important to hold the confidence, lying by omission may actually do more good than harm because it will build relationships with the individual and others who later recognize the importance of omission.

Apply four different perspectives for making meaningful comparisons to assess a firm's internal strengths and weaknesses

Managers need objective standards to use when examining internal resources and value-building activities Strategists use the firm's historical experience as a basis for evaluating internal factors Benchmarking, or comparing the way "our" company performs a specific activity with a competitor or other company doing the same thing, has become a central concern of managers in quality commitment companies worldwide

Explain the nature and value of a market focus strategy

Market focus: the extent to which a business concentrates on a narrowly defined market Small companies, at least the better ones, usually thrive because they serve narrow market niches Market focus allows some businesses to compete on the basis of low cost, differentiation, and rapid response against much larger businesses with greater resources With enhanced knowledge of its customers and intricacies of their operations, the small, focused company builds up organizational knowledge about timing-sensitive ways to work with a customer. Often the needs of that narrow set of customers represent a large part of the small, focused business's revenues.

Contrast Maslow's, Alderfer's, and McClelland's need theories.

Maslow proposed that motivation is a function of five basic needs arranged in a prepotent hierarchy. The concept of a stair-step hierarchy has not stood up well under research. Alderfer concluded that three core needs explain behavior—existence, relatedness, and growth. He proposed that more than one need can be activated at a time and frustration of higher-order needs can influence the desire for lower-level needs. McClelland argued that motivation and performance vary according to the strength of an individual's need for achievement. High achievers prefer tasks of moderate difficulty, situations under their control, and a desire for more performance feedback than low achievers. Top managers should have a high need for power coupled with a low need for affiliation.

Discuss Burns and Stalker's findings regarding mechanistic and organic organizations.

Mechanistic organizations are rigid, command-and-control bureaucracies. These are important when there is a need for uniform product quality, speedy service, and cleanliness, with McDonalds serving as an excellent example of this. Organic organizations are fluid and flexible networks of multitalented people. People in these organizations perform a variety of tasks. Gore is an example of an organic organization because people don't have job titles, nor do they report to anybody. Gore uses a very team-based structure.

Discuss the role of in-group thinking in intergroup conflict, and explain what management can do about intergroup conflict

Members of in-groups tend to see themselves as unique individuals who are more moral than outsiders, whom they view as a threat and stereotypically as all alike. In-group thinking is associated with ethnocentric behavior. According to the updated contact model, managers first must strive to eliminate negative relationships between conflicting groups. Beyond that, they need to provide team building, encourage personal friendships across groups, foster positive attitudes about other groups, and minimize negative gossip about groups.

The complexity of the global environment and the control problems that are faced by global firms

Multiple political, economic, legal, social, and cultural environments as well as various rates of change Interactions between the national and foreign environments are complex Geographic separation, cultural and national differences, and variations in business practices all tend to make communication and control efforts difficult Global face extreme competition Global are restricted in their selection of competitive strategies by various regional blocs and economic integrations Financial policies typically are designed to further the goals of the parent company and pay minimal attention to the goals of the host countries Different financial environments make normal standards of company behavior more problematic Important differences in measurement and control systems often exist These problems can be reduced through more attention to strategic planning

conglomerate diversification

Occasionally a firm, particularly a very large one, plans acquire a business because it represents the most promising investment opportunity available. This grand strategy is commonly known as conglomerate diversification. The principal concern of the acquiring firm is the profit pattern of the venture Unlike concentric diversification, conglomerate diversification gives little concern to creating product-market synergy with existing businesses

joint ventures

Occasionally two or more capable firms lack a necessary component for success in a particular competitive environment The solution is a set of joint ventures, which are commercial companies (children) created and operated for the benefit of the co-owners (parents) The joint venture extends the supplier-consumer relationship and has strategic advantages for both partners

Discuss the importance of the value disciplines

Operational Excellence This strategy attempts to lead the industry in price and convenience by pursuing a focus on lean and efficient operations Customer Intimacy Customer intimacy means continually tailoring and shaping products and services to fit an increasingly refined definition of the customer Product Leadership Companies that pursue the discipline of product leadership strive to produce a continuous state of state-of-the-art products and services

Of the value disciplines proposed by Michael Treacy and Fred Wiersema, which one is best identified as referring to providing customers with convenient and reliable products and services at competitive prices?

Operational excellence page 185.

Understand the synergy approach to strategic analysis and choice in multibusiness companies

Opportunities to build value via diversification, integration, or joint venture strategies are usually found in market-related, operations-related, and management activities Strategic analysis is concerned with whether or not the potential competitive advantages expected to arise from each value opportunity have materialized The most compelling reason companies should diversify can be found in situations where core competencies—key value-building skills—can be leveraged with other products or into markets that are not a part of where they were created Each core competency should provide a relevant competitive advantage to the intended businesses Businesses in the portfolio should be related in ways that make the company's core competencies beneficial Any combination of competencies must be unique or difficult to recreate

Describe the three key elements of the entrepreneurship process.

Opportunity is focusing intensely on solving problems and benefits to customers rather than product or service ideas someone just dreams up. Resources involve money and time. Key people, the entrepreneurial team, need to bring technical skill, business skill, and key characteristics to the new venture endeavor for it to succeed.

Describe the model of organizational commitment.

Organizational commitment reflects how strongly a person identifies with an organization and is committed to its goals. Organizational commitment is composed of three related components: affective commitment continuance commitment normative commitment. In turn, each of these components is influenced by a separate set of antecedents: An antecedent is something that causes the component of commitment to occur. .

Summarize the seven conclusions derived from research about the outcomes associated with organizational culture.

Organizational culture is related to measures of organizational effectiveness. Employees are more satisfied and committed to organizations with clan cultures. An organization's financial performance is not very strongly related to organizational culture. Companies with market cultures tend to have more positive organizational outcomes. Innovation and quality can be increased by building characteristics associated with clan, adhocracy, and market cultures into the organization. Customer satisfaction is most strongly related to market cultures. Hierarchy cultures are not associated with positive outcomes.

Define and explain what is meant by organizational culture, and how it is created, influenced, and changed

Organizational culture is the set of important assumptions (often unstated) that members of an organization share in common Every organization has its own culture Assumptions become shared assumptions through internalization among an organization's individual members

Define organizational culture and discuss its three layers.

Organizational culture represents the shared assumptions that a group holds. It influences employees' perceptions and behavior at work. The three layers of organizational culture include observable artifacts, espoused values, and basic assumptions. Artifacts are the physical manifestations of an organization's culture. include dress, awards, myths and stories, published lists of values, observable rituals and ceremonies, and visible behavior exhibited by people and groups. Espoused values represent the explicitly stated values and norms that are preferred by an organization. Basic underlying assumptions are unobservable and represent the core of organizational culture.

Distinguish between role conflict and role ambiguity

Organizational roles are sets of behaviors persons expect of occupants of a position. One may experience role overload (too much to do in too little time) role conflict (conflicting role expectations) role ambiguity (unclear role expectations).

Describe boundaryless organizations and why they are important

Organizational structure that allows people to interface with others throughout the organization without need to wait for a hierarchy to regulate that interface across functional, business, and geographic boundaries. erasing internal divisions so the people work across functional, business, and geographic boundaries to achieve an integrated diversity—the ability to transfer the best ideas, the most developed knowledge, and the most valuable people quickly, easily, and freely throughout

Of the following statements, which one would not fit well in the segment of a corporate mission statement expressing the corporation's concern for public image?

Our organization is dedicated to the total success of our business as a worldwide competitor. see the discussion under Exhibit 2.2, Strategy in Action: Identifying Mission Statement Components, page 23.

Gain a general sense of what outsourcing is and how it becomes a choice in functional tactics decisions for strategy implementation

Outsourcing is acquiring an activity, service, or product necessary to provide a company's products or services from "outside" the people or operations controlled by that acquiring company Outsourcing can save valuable time and money for many organizations

________ are directives designed to guide the thinking, decisions, and actions of managers and subordinates in implementing a firm's strategy.

Policies see the discussion under Empowering Operating Personnel: The Role of Policies, page 276.

Many new organizational managers expect to be able to rely on which type of power in order to get things accomplished?

Position power

Define positive reinforcement, negative reinforcement, punishment, and extinction, and distinguish between continuous and intermittent schedules of reinforcement.

Positive and negative reinforcement are consequence management strategies that strengthen behavior, whereas punishment and extinction weaken behavior. These strategies need to be defined objectively in terms of their actual impact on behavior frequency, not subjectively on the basis of intended impact. Every instance of a behavior is reinforced with a continuous reinforcement (CRF) schedule. Under intermittent reinforcement schedules—fixed and variable ratio or fixed and variable interval—some, rather than all, instances of a target behavior are reinforced. Variable schedules produce the most extinction-resistant behavior.

Distinguish between positive and negative emotions, and explain how they can be judged.

Positive emotions—happiness/joy, pride, love/affection, and relief—are personal reactions to circumstances congruent with one's goals. Negative emotions—anger, fright/anxiety, guilt/shame, sadness, envy/jealousy, and disgust—are personal reactions to circumstances incongruent with one's goals. Both types of emotions need to be judged in terms of intensity and the appropriateness of the person's relevant goal.

Assimilating learning Style

Prefer theoretical models and inductive reasoning (drawing generalizations from specifics) Enjoy the search to new knowledge Prefer a disciplined rather than random search for the "right" answer

Accommodating learning Style

Prefer to have a plan and systematically experiment Good at interpreting immediate circumstances Good interpersonal skills and adept at influencing others

Every strategy is based on certain assumptions and predications. ________ control is designed to check systematically and continuously whether or not what the strategy is based on is still valid.

Premise see the discussion under Premise Control, page 355.

Illustrate the use of controls to guide and monitor strategy implementation.

Premise controls, strategic surveillance, special alert controls, and implementation controls are four types of strategic controls. All four types are designed to meet top management's needs to track a strategy as it is being implemented; to detect underlying problems, circumstances, or assumptions surrounding that strategy; and to make necessary adjustments. These strategic controls are linked to environmental assumptions and the key operating requirements necessary for successful strategy implementation.

To ensure long-term sustainability through effective business processes, organizations need

Process Enablers Enterprise Capabilities Companies can use their evaluations of the enablers and capabilities, in tandem, to plan and assess the progress of process-based transformations."

Primary activities conducted by a firm are those that are involved in the creation, marketing, and transfer of the product to the buyer. Which one of the following would not be considered a primary activity?

Procurement page 146.

Through its use of speed-based strategy, the Tick-Tock Clock Corporation is most likely to gain its competitive advantage by being proficient in all but which one of the following activities?

Product cost leadership see the discussion under Evaluating Speed as a Competitive Advantage, page 222.

_________ involves the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels.

Product development PG 193

All of the following would be considered organizational skills and resources that foster a differentiation strategy except which one?

Products of services designed for ease of manufacture or delivery page 220.

Discuss seven different topics for long-term corporate objectives

Profitability Competitive Position Employee Relations Tech Leadership Public Responsibility Productivity Employee Development

_________ is defined as conflict that raises different opinions regardless of the personal feelings of those involved.

Programmed conflict

Strategic advantages of a functional organization structure would include all but which one of the following?

Promotes functional rivalry

Explain how psychological capital, deliberate practice, luck, and humility can pave your road to success.

Psychological capital (PsyCap) can be built through self-efficacy, optimism (positive attributions), hope (goal setting), and resiliency. Deliberate practice involves following the 10,000-hour rule with a demanding, repetitive, and assisted program of improvement. Lucky people stay involved to maximize their chance opportunities, follow their lucky hunches, expect to be lucky no matter the circumstances, and turn bad luck into good fortune. Humble people factor the contributions of others and good fortune into their perceived success.

According the BCG growth-share matrix, which of the following would be most likely to possess a low market share and a high growth rate?

Question mark ee the discussion under Exhibit 9.2: BCG Growth-Share Matrix, page 244.

Understand the resource-based view of a firm

RBV is a method of analyzing and identifying a firm's strategic advantages based on examining its distinct combination of assets, skills, capabilities, and intangibles The RBV's underlying premise is that firms differ in fundamental ways because each firm possesses a unique "bundle" of resources Each firm develops competencies from these resources, and these become the source of the firm's competitive advantages

Three tiers of environmental factors that affect firm performance

REMOTE ENVIRONMENT Economic Factors Social Factors Political Factors Technological Factors Ecological Factors Industry environment Entry Barriers Supplier Power Buyer Power Substitute availability Competitive rivalry Operating environment Competitors Creditors Customers Laborers Suppliers

Which source of power would be most applicable when influencing the following targets? Your subordinate

REWARD, COERCIVE, LEGITIMATE (POSITION POWER) EXPERT AND REFERENT (PERSONAL POWER)

Explain five ways improvements have been sought in traditional organizational structures

Redefine the role of corporate headquarters from control to support and coordination Balance the demands for control/differentiation with the need for coordination/integration Restructure to emphasize and support strategically critical activities Reengineer strategic business processes Downsize and self-manage

Which one of the following would not be considered a method a firm can engage in to enhance an eco-efficient strategy?

Reducing waste while enlarging product packaging size page 88.

Important ways leaders can shape an organization's culture would include all but which one of the following?

Require self-fulfillment

The type of executive bonus compensation that is noted for promoting longer executive tenure than other forms is which one of the following?

Restricted stock plans see the discussion under Exhibit 10.11: Types of Executive Bonus Compensation, page 280.

All of the following would be considered true about a firm at the start of its globalization process except which one?

Restructuring of the firm's hierarchy must be undertaken prior to entering the global marketplace. page 120.

_______ power refers to the ability to influence and direct others that comes from being able to confer desired items in return for desired actions or outcomes.

Reward

In Maslow's need hierarchy, the __________ need is the most basic need, involving having enough food, air, and water to survive.

SAFETY

Simon Ize is the owner of a company (2-Shine Simon Ize-It) that specializes in a variety of floor waxing and polishing products. His company managers are in the process of finding answers to such questions as: How well is our current strategy working? and What is our current situation? In order to obtain the answers to these types of questions Simon's company is most likely to conduct which one of the following?

SWOT analysis page 138.

Understand how to conduct a SWOT analysis

SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a historically popular technique through which managers create a quick overview of a company's strategic situation A SWOT analysis can overemphasize internal strengths and downplay external threats A SWOT analysis can be static and can risk ignoring changing circumstances A SWOT analysis can overemphasize a single strength or element of strategy A strength is not necessarily a source of competitive advantage

Define self-efficacy, and explain its sources.

Self-efficacy involves one's belief about his or her ability to accomplish specific tasks. Those extremely low in self-efficacy suffer from learned helplessness. Four sources of self-efficacy beliefs are prior experience, behavior models, persuasion from others, and assessment of one's physical and emotional states. High self-efficacy beliefs foster constructive and goal-oriented action, whereas low self-efficacy fosters passive, failure-prone activities and emotions.

Define self-esteem, and explain how it can be improved with Branden's six pillars of self-esteem.

Self-esteem is how people perceive themselves as physical, social, and spiritual beings. Branden's six pillars of self-esteem are live consciously be self-accepting take personal responsibility be self-assertive live purposefully have personal integrity.

Identify and apply the qualities of good short-term objectives to your own experiences

Short-Term Objectives provide: Specificity Time frame for completion Who is responsible—Accountability Measurable Measurable activity Measurable outcomes Priorities Simple ranking Relative priority / Weights Linked to Long-Term Objectives Cascading effect

Understand how short-term objectives are used in strategy implementation

Short-term objectives assist strategy implementation by identifying measurable outcomes of action plans or functional activities, which can be used to make feedback, correction, and evaluation more relevant and acceptable

Tom's sandwich shop in Metuchen, New Jersey is likely to most effectively engage in which of the following types of organizational structure?

Simple

List at least four things managers can do to build trust.

Six recommended ways to build trust are through communication, support, respect (especially delegation), fairness, predictability, and competence.

Describe the positive and negative effects of diversity by using social categorization theory and information/decision-making theory.

Social categorization theory implies that similarity leads to liking and attraction, thereby fostering a host of positive outcomes. This theory supports the idea that homogeneity is better than heterogeneity because diversity causes negative interpersonal processes and group dynamics. The information/decision-making theory is based on the notion that diverse groups should outperform homogenous groups because diversity is positively associated with task-relevant processes and decision making.

Illustrate how a firm can pursue both low-cost and differentiation strategies

Soho Beveragesby former Pepsi manager Tom Cox It is attributable to focusing on a niche market, delis; differentiating the product and its sales force; achieving low costs in promotion and delivery; and making rapid, immediate response to any deli owner request its normal practice."5

_________ is one of the basic types of strategic control.

Special alert control see the discussion under Establishing Strategic Controls, page 354.

Which one of the following is best described as being a thorough, often rapid reconsideration of the firm's strategy because of a sudden, unexpected event?

Special alert control see the discussion under Special Alert Control, page 357.

Businesses with many sources of advantage that are characterized by high levels of skill in achieving differentiation such as product design and innovation would most likely be classed as which one of the following under the BCG's strategic environments matrix?

Specialization business see the discussion under BCG's Strategic Environments Matrix, page 245.

The Tick-Tock Clock Corporation is able to successfully meet the needs of its customers more rapidly than any of its competitors can. It is most likely this corporation is engaging in which one of the following business strategies?

Speed-based page 222.

Identify different types of executive compensation and when to use each in strategy implementation

Stock options provide the executive with the right to purchase company stock at a fixed price in the future the executive receives a bonus only if the firm's share price appreciates. Restricted stock is designed to provide benefits of direct executive stock ownership restricted stock plans are a form of deferred compensation that promotes longer executive tenure than other types of plans. Golden handcuffs occur where the stock compensation is deferred until vesting time provisions are met or a bonus is deferred an incentive for executive to remain with the firm. Golden parachutes are a form of bonus compensation that is designed to retain talented executives an incentive for executive to remain with the firm. Cash bonuses based on accounting measures Based on performance

___________ is a long term plan outlining actions needed to achieve a desired result.

Strategic Plan

strategic alliances

Strategic alliances are distinguished from joint ventures because the companies involved do not take an equity position in one another In some instances, strategic alliances are synonymous with licensing agreements Outsourcing arrangements vary

Which of the following is best identified as being an adaptation of the divisional structure in which various divisions are grouped together based on some common elements?

Strategic business units

Describe and illustrate four types of strategic control.

Strategic control is concerned with tracking a strategy as it is being implemented, detecting problems or changes in its underlying premises, and making necessary adjustments Characterized as a form of "steering control" Premise control is designed to check systematically and continuously whether the premises on which the strategy is based are still valid Environmental factors Industry factors Strategic surveillance is designed to monitor a broad range of events inside and outside the firm that are likely to affect the course of its strategy Strategic surveillance must be kept as unfocused as possible Despite its looseness, strategic surveillance provides an ongoing, broad-based vigilance in all daily operations Special alert control is the thorough, and often rapid, reconsideration of the firm's strategy because of a sudden, unexpected event A drastic event should trigger an immediate and intense reassessment of the firm's strategy and its current strategic situation Crisis teams Contingency plans Implementation control is designed to assess whether the overall strategy should be changed in light of the results associated with the incremental actions that implement the overall strategy The two basic types of implementation control are: Monitoring strategic thrusts Milestone reviews

The CEO of the Baxley Corporation has a clear sense of where he wants the corporation to go and also knows exactly what results are desired and necessary. It can be stated Baxley's CEO has which one of the following?

Strategic intent

Of the following, which statement would most likely not be considered a dimension of strategic issues?

Strategic issues always impact the firm's long-term income.

Appreciate the importance of strategic management as a process

Strategic management is a process—a flow of information through interrelated stages of analysis toward the achievement of some goal

Explain the concept of strategic management

Strategic management is the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company's objectives. Because it involves long-term, future-oriented, complex decision making and requires considerable resources, top-management participation is essential. It comprises nine critical tasks: 1. Formulate the company's mission, including broad statements about its purpose, philosophy, and goals. 2. Conduct an analysis that reflects the company's internal conditions and capabilities. 3. Assess the company's external environment, including both the competitive and the general contextual factors. 4. Analyze the company's options by matching its resources with the external environment. 5. Identify the most desirable options by evaluating each option in light of the company's mission. 6. Select a set of long-term objectives and grand strategies that will achieve the most desirable options. 7. Develop annual objectives and short-term strategies that are compatible with the selected set of long-term objectives and grand strategies. 8. Implement the strategic choices by means of budgeted resource allocations in which the matching of tasks, people, structures, technologies, and reward systems is emphasized. 9. Evaluate the success of the strategic process as an input for future decision making. strategic management

_________ control is designed to monitor a broad range of events inside and outside the firm that are likely to affect the course of its strategy.

Strategic surveillance see the discussion under Strategic Surveillance, page 357.

Utilizing a SWOT analysis diagram, one would expect to find which piece of information about the company in question in Cell 2?

Supports a diversification strategy page 142.

Problems leaders may face when they are attempting to build their organizations include all but which one of the following?

Surrendering organizational control to lower-level subordinates

Explain which goal of a company is most important: survival, profitability, or growth

Survival - A firm that is unable to survive will be incapable of satisfying the aims of any of its stakeholders. Profitability - A firm's profitability is the mainstay goal of a business. Growth - A firm's growth is tied inextricably to its survival and profitability. Growth in this sense must be broadly defined. GROWTH IS MOST IMPORTANT continuous growth is essential for to achieve our other objectives. In the first place, we serve a rapidly growing and expanding segment of our technological society. To remain static would be to lose ground. We cannot maintain a position of strength and leadership in our field without growth. In the second place, growth is important in order to attract and hold high-caliber people.

Purportedly, there are three economic goals that serve to guide the strategic direction of almost every business organization. ________ is least likely to be considered one of these goals?

Sustained absolute advantage see the discussion under Company Goals: Survival; Growth; Profitability, page 24.

According to Frederick Herzberg, hygiene factors are job characteristics associated with job dissatisfaction.

TRUE

According to Kelley, people make causal attributions after gathering information about three dimensions of behavior: consensus, distinctiveness, and consistency.

TRUE

According to Tuckman's five-stage theory of group development, during the "storming" stage subgroups form and power politics may erupt into open rebellion.

TRUE

Designing jobs according to the principles of scientific management tends to increase efficiency and productivity, but also leads to simplified and repetitive jobs.

TRUE

Horizontal loading consists of giving employees more responsibility by taking on tasks normally performed by their supervisors.

TRUE

Hourly pay is an example of a fixed interval reinforcement schedule.

TRUE

Instrumental cohesiveness is a sense of group togetherness based on mutual dependency needed to get the job done.

TRUE

Organizational culture is the set of shared, taken-for-granted implicit assumptions held by a group that determines how the group perceives, thinks about, and reacts to its various environments.

TRUE

Rewarding an employee based on his or her tenure is an example of a reward based on nonperformance criteria.

TRUE

The contrast effect is the tendency to evaluate people or objects by comparing them with characteristics of recently observed people or objects.

TRUE

The four sociological criteria of a group include: two or more freely interacting individuals, collective norms, collective goals, and common identity.

TRUE

The fundamental attribution bias represents a person's tendency to attribute another individual's behavior to his or her personal characteristics, as opposed to situational factors.

TRUE

The need for affiliation is defined as the desire to spend time in social relationships and activities.

TRUE

The three components of effective teamwork are cooperation, trust, and cohesiveness.

TRUE

Discuss why teams fail.

Teams fail because unrealistic expectations cause frustration and failure. Common management mistakes include weak strategies, creating a hostile environment for teams, faddish use of teams, not learning from team experience, vague team assignments, poor team staffing, inadequate training, and lack of trust. Team members typically try too much too soon, experience conflict over differing work styles and personalities, ignore important group dynamics, resist change, exhibit poor interpersonal skills and chemistry, and display a lack of trust.

Which of the following is a false statement regarding the fourth set of factors - technological changes- in a firm's remote environment?

Technological changes rarely influence or promote innovation within firms. page 86.

The quasi-science of anticipating environmental and competitive changes and estimating their importance to an organization's operations is best identified as which one of the following?

Technological forecasting page 86.

Describe the product-team structure and explain why it is a prototype for a more open, agile organizational structure

That ability to make speedier, cost-saving decisions has the added advantage of eliminating the need for one or more management layers above the team level, which would traditionally have been in place to review and control these types of decisions.

Understand and use three different portfolio approaches to conduct strategic analysis and choice in multibusiness companies

The BCG Growth-Share Matrix Managers using the BCG matrix plotted each of the company's businesses according to market growth rate and relative competitive position. Market growth rate is the projected rate of sales growth for the market being served by a particular business. Usually measured as the percentage increase in a market's sales or unit volume over the two most recent years, this rate serves as an indicator of the relative attractiveness of the markets served by each business in the firm's portfolio of businesses. Relative competitive position usually is expressed as the market share of a business divided by the market share of its largest competitor. Thus, relative competitive position provides a basis for comparing the relative strengths of the businesses in the firm's portfolio in terms of their positions in their respective markets The Industry Attractiveness-Business Strength Matrix This matrix uses multiple factors to assess industry attractiveness and business strength rather than the single measures (market share and market growth, respectively) employed in the BCG matrix. It also has nine cells as opposed to four—replacing the high/low axes with high/medium/low axes to make finer distinctions among business portfolio positions. The company's businesses are rated on multiple strategic factors within each axis. The position of a business is then calculated by "subjectively" quantifying its rating along the two dimensions of the matrix. Depending on the location of a business within the matrix one of the following strategic approaches is suggested: (1) invest to grow, (2) invest selectively and manage for earnings, or (3) harvest or divest for resources. The resource allocation decisions remain quite similar to those of the BCG approach. BCG's Strategic Environments Matrix Volume businesses are those that have few sources of advantage, but the size is large—typically the result of scale economies Stalemate businesses have few sources of advantage, with most of those small Fragmented businesses have many sources of advantage, but they are all small Specialization businesses have many sources of advantage and find those advantages potentially sizable

Identify and describe the Big Five personality dimensions, and specify which one is correlated most strongly with job performance.

The Big Five personality dimensions are extraversion (social and talkative) agreeableness (trusting and cooperative) conscientiousness (responsible and persistent) emotional stability (relaxed and unworried) openness to experience (intellectual and curious). Conscientiousness is the best predictor of job performance.

McClelland's Need Theory

The Need for Achievement Desire to accomplish something difficult The Need for Affiliation Desire to spend time in social relationships and activities The Need for Power Desire to influence, coach, teach, or encourage others to achieve

Describe and contrast the Pygmalion effect, the Galatea Effect, and the Golem Effect.

The Pygmalion effect, also known as the self-fulfilling prophecy, describes how someone's high expectations for another person result in high performance for that person. The Galatea effect occurs when an individual's high self-expectations lead to high self-performance. The Golem effect is a loss of performance resulting from low leader expectations.

The Stormio Damage Repairio Corporation of Topeka is in the process of establishing its long-term objectives. These objectives will be used to guide the corporation toward achieving prosperity in its future years. All but which of the following areas would these long-term objectives need to address?

The ability of the firm to invest in capital equipment this year. page 179.

Describe the role of a company's board of directors Explain agency theory and its value

The board of directors is the group of stockholder representatives and strategic managers responsible for overseeing the creation and accomplishment of the company mission. Major Board Responsibilities Establish and update mission Elect top officers & CEO Establish compensation for top officers Determine amount & timing of dividends Set broad company policy Set objectives and authorize managers to implement long-term strategy Mandate company's legal and ethics compliance Agency theory is a set of ideas on organizational control based on the belief that the separation of the ownership from management creates the potential for the wishes of owners to be ignored. The cost of agency problems plus the cost of actions taken to minimize agency problems are collectively termed agency costs. Executives are often free to pursue their own interests because of the disproportionate access they have to company information. This is the moral hazard problem. Adverse selection is an agency problem caused by the limited ability of stockholders to determine the competencies and priorities of executives at hire.

Which one of the following statements would be considered false when discussing the value a company places on its public image?

The chance of gaining negative public image does not inspire organizations into action. see the discussion under Public Image, page 27.

Five assumptions of Lewin's Change Model are as follows:

The change process involves learning something new, as well as discontinuing current attitudes, behaviors, and organizational practices. Change will not occur unless there is motivation to change. People are the hub of all organizational changes. Resistance to change is found even when the goals are highly desirable. Effective change requires reinforcing new behaviors, attitudes, and organizational practices.

Discuss the four types of organizational culture associated with the competing values framework.

The competing values framework identifies four different types of organizational culture. A clan culture has an internal focus and values flexibility rather than stability and control. This type of organization encourages collaboration between employees and is committed to having a cohesive work group and high job satisfaction. Valero Energy; Southwest Airlines; Nucor "employee focused" An adhocracy culture has an external focus and values flexibility. This type of culture fosters creation of innovative products and services by being adaptable, creative, and fast to respond to changes in the market place. Centralized power and authority would not be effective structures in an adhocracy. These organizations promote creativity, innovation, and knowledge sharing.GE, W.L. Gore, & Intel Adaptable to changes in marketplace A market culture has a strong external focus and values stability and control. This type of culture focuses on the customer over employee development and satisfaction because the goal of managers is to drive towards productivity, profits, and customer satisfaction. This culture rewards employees who deliver results.Home Depot - Rewards results, productivity, customer satisfaction A hierarchy culture has an internal focus and values stability and control over flexibility.. It will tend to have reliable internal processes and control mechanisms (e.g., Dell whose focus is on cost-cutting and efficiency.)Exelon; Dell Efficiency, timeliness, and reliability are measured

Coping Strategies

The control coping strategy directly confronts or solves problems. The escape strategy avoids or ignores stressors and problems. And symptom management focuses on reducing the symptoms of stress.

Explain why organizations of the future need to be ambidextrous learning organizations

The evolution of the virtual organizational structure as an integral mechanism managers use has brought with it recognition of the central role knowledge plays in implementation The shift from exploitation to exploration (Rangan) indicates the growing importance of organizational structures that enable a learning organization to allow global companies the chance to build competitive advantage An ambidextrous organization emphasizes coordination over control as well as flexibility

turnaround

The firm finds itself with declining profits Among the reasons are economic recessions, production inefficiencies, and innovative breakthroughs by competitors Strategic managers often believe the firm can survive and eventually recover if a concerted effort is made over a period of a few years to fortify its distinctive competences. This is turnaround. Two forms of retrenchment: Cost reduction Asset reduction A turnaround situation represents absolute and relative-to-industry declining performance of a sufficient magnitude to warrant explicit turnaround actions The immediacy of the resulting threat to company survival is known as situation severity Turnaround responses among successful firms typically include two stages of strategic activities: retrenchment and the recovery response The primary causes of the turnaround situation have been associated with the second phase of the turnaround process, the recovery response

Identify alternative strategies for overcoming resistance to change.

The first step is to use the dynamic model of resistance to diagnose the causes of employee resistance. The second is to consider characteristics in the work environment that may represent obstacles to change. These obstacles then need to be eliminated. Finally, managers can adopt one or more of the generic strategies for overcoming resistance to change. education + communication participation + involvement facilitation + support negotiation + agreement manipulation + co-optation explicit + implicit coercion.

Describe the five stages in Tuckman's theory of group development, and discuss the threat of group decay.

The five stages in Tuckman's theory are forming (the group comes together) storming (members test the limits and each other) norming (questions about authority and power are resolved as the group becomes more cohesive) performing (effective communication and cooperation help the group get things done) adjourning (group members go their own way). According to recent research, group decay occurs when a work group achieves the "performing" stage and then shifts into reverse. Group decay occurs through de-norming (erosion of standards), de-storming (growing discontent and loss of cohesiveness), and de-forming (fragmentation and breakup of the group).

Explain the four developmental networks associated with mentoring.

The four developmental networks are based on integrating the diversity and strength of an individual's developmental relationships. The four resulting developmental networks are receptive traditional entrepreneurial opportunistic. A receptive network is composed of a few weak ties from one social system. Having a few strong ties with developers from one social system is referred to as a traditional network. An entrepreneurial network is made up of strong ties among several developers; and an opportunistic network is associated with having weak ties from different social systems.

Describe Lewin's systems model of change.

The four main components of the systems model of change are INPUTS, STRATEGIC PLAN, TARGET ELEMENTS OF CHANGE, and OUTPUTS In addition to providing a framework for diagnosing what to change and how to evaluate the success of a change effort, the systems model of change is based on the notion that all change—no matter how large or small—has a ripple effect throughout the entire organizational system.

Describe what good organizational leadership involves

The leadership challenge is to galvanize commitment among people within an organization as well as stakeholders outside the organization to embrace change and implement strategies intended to position the organization to succeed in a vastly different future Leaders help their company embrace change by setting for their strategic intent—a clear sense of where they want to lead the company and what results they expect to achieve Leader's vision—an articulation of a simple criterion or characterization of what the leader sees the company must become to establish and sustain global leadership Make clear the performance expectations a leader has for the organization, and managers in it, as they seek to move toward that vision

Review the mechanistic, motivational, biological, and perceptual-motor approaches to job design

The mechanistic approach is based on industrial engineering and scientific management and focuses on increasing efficiency, flexibility, and employee productivity. Motivational approaches aim to improve employees' affective and attitudinal reactions and behavioral outcomes. Job enlargement, job enrichment, job rotation, and a contingency approach called the job characteristics model are motivational approaches to job design. The biological approach focuses on designing the work environment to reduce employees' physical strain, fatigue, and health complaints. The perceptual-motor approach emphasizes the reliability of work outcomes.

All of the following statements would be considered true of a company's mission statement except which one?

The mission statement staunchly presents a firm's strategic intent. see the discussion under What is a Company Mission, page 21.

Explain the dynamic model of resistance to change.

The model contradicts the traditional assumption that resistance to change is caused by irrational and self-serving recipients. Rather, resistance is viewed as being caused by the dynamic interactions among three key sources of resistance. They are recipient characteristics, change agent characteristics, and the quality of the change agent-recipient relationships. Managers need to consider all three sources of resistance when trying to manage resistance to change.

Evaluate the parent company role in strategic analysis and choice to determine whether and how it adds tangible value in a multibusiness company

The parenting framework perspective sees multibusiness companies as creating value by influencing—or parenting—their businesses The best parent companies create more value than any of their rivals do or would if they owned the same businesses To add value, a parent must improve its businesses Size & Age Management Business Definition Predictable Errors Linkages Common capabilities Specialized expertise External relations Major decisions Major changes

Understand the portfolio approach to strategic analysis and choice in multibusiness companies.

The portfolio approach is a historical starting point for strategic analysis and choice in multibusiness firms Boston Consulting Group (BCG) pioneered an approach called portfolio techniques that attempted to help managers "balance" the flow of cash resources among their various businesses while identifying their basic strategic purpose within the overall portfolio companies can enter businesses with greater growth potential; enter businesses with different cyclical considerations; diversify inherent risks; increase vertical integration, and thereby reduce costs; capture value added; and instantly have a market presence rather than slower internal growth

Understand value chain analysis and how to use it to disaggregate a firm's activities

The term value chain describes a way of looking at a business as a chain of activities that transform inputs into outputs that customers value Value chain analysis (VCA) attempts to understand how a business creates customer value by examining the contributions of different activities within the business to that value VCA takes a process point of view Identify activities Allocate costs

Maslow's Need Hierarchy Theory is probably the best-known conceptualization of human needs.

The theory suggests that there are five human needs and that these are arranged in such a way that lower, more basic needs must be satisfied before higher-level needs become activated. The lowest need that is not well gratified will tend to dominate behavior.

Identify the three components of attitudes and discuss cognitive dissonance.

The three components of attitudes are affective cognitive behavioral. The affective component represents the feelings or emotions one has about a given object or situation. The cognitive component reflects the beliefs or ideas one has about an object or situation. The behavioral component refers to how one intends or expects to act toward someone or something. Cognitive dissonance represents the psychological discomfort an individual experiences when his or her attitudes or beliefs are incompatible with his or her behavior. There are three main methods for reducing cognitive dissonance: change an attitude or behavior belittle the importance of the inconsistent behavior find consonant elements that outweigh dissonant ones.

Describe the three phases in Feldman's model of organizational socialization.

The three phases of Feldman's model are anticipatory socialization encounter change and acquisition. Anticipatory socialization begins before an individual actually joins the organization. The encounter phase begins when the employment contract has been signed. Phase 3 involves the period in which employees master important tasks and resolve any role conflicts.

Explain why the mission statement should include the company's basic product or service, its primary markets, and its principal technology

The typical business begins with the beliefs, desires, and aspirations of a single entrepreneur These beliefs are usually the basis for the company's mission As the business grows or is forced to alter its product, market, or technology, redefining the company mission may be necessary reflects the values and priorities of the firm's strategic decision makers.

Identify the barriers and challenges to managing diversity.

There are 10 barriers to successfully implementing diversity initiatives: (a) inaccurate stereotypes and prejudice (b) ethnocentrism (c) poor career planning (d) an unsupportive and hostile working environment for diverse employees (e) lack of political savvy on the part of diverse employees, (f) difficulty in balancing career and family issues (g) fears of reverse discrimination (h) diversity is not seen as an organizational priority (i) the need to revamp the organization's performance appraisal and reward system (j) resistance to change.

Explain how managers can stimulate functional conflict, and identify the five conflict-handling styles.

There are many antecedents of conflict—including incompatible personalities, competition for limited resources, and unrealized expectations—that need to be monitored. Functional conflict can be stimulated by permitting antecedents of conflict to persist or programming conflict during decision making with devil's advocates or the dialectic method. The five conflict-handling styles are integrating (problem solving), obliging (smoothing), dominating (forcing), avoiding, and compromising. There is no single best style.

Highlight the managerial implications of increasing diversity in the workforce.

There are seven broad managerial implications: (a) To attract the best workers, companies need to adopt policies and programs that meet the needs of all employees; (b) managers should consider progressive methods to recruit, retain, and integrate Hispanic workers into their organizations; (c) mentoring programs are needed to help minorities advance within the organizational hierarchy; (d) there will be a shortage of qualified people in technical fields; (e) on-the-job remedial skills and literacy training will be needed to help the growing number of dropouts and illiterates cope with job demands; (f) organizations will need to provide tangible support education if the United States is to remain globally competitive; and (g) there are three broad recommendations for managing an aging workforce.

Discuss the key recipient and change agent characteristics that cause resistance to change.

There are six key recipient characteristics (1) an individual's predispostion toward change (2) surprise and fear of the unknown (3) fear of failure (4) loss of status and/or job security, (5) peer pressure (6) past success. The five key change agent characteristics include the following: (1) decisions that disrupt cultural traditions or group relationships, (2) personality conflicts (3) lack of tact or poor timing (4) leader ship style 5) failing to legitimize change.

Discuss the various socialization tactics used to socialize employees.

There are six key socialization tactics. They are collective versus individual formal versus informal sequential versus random fixed versus variable serial versus disjunctive investiture versus divestiture (see Table 3-2). Each tactic provides organizations with two opposing options for socializing employees.

Review the myths about innovation

There are two key myths about innovation. The first is the myth that innovation involves an epiphany or eureka moment. The second is that innovation can be systematized.

Innovation

These companies seek to reap the initially high profits associated with customer acceptance of a new or greatly improved product Then, rather than face stiffening competition as the basis of profitability shifts from innovation to production or marketing competence, they search for other original or novel ideas The underlying rationale of the grand strategy of innovation is to create a new product life cycle and thereby make similar existing products obsolete

Identify and briefly describe five alternative causes of job satisfaction.

They are need fulfillment (the degree to which one's own needs are met) discrepancies (satisfaction depends on the extent to which one's expectations are met) value attainment (satisfaction depends on the degree to which one's work values are fulfilled) equity (perceived fairness of input/outcomes determines one's level of satisfaction) dispositional/genetic (job satisfaction is dictated by one's personal traits and genetic makeup).

Identify five teamwork competencies team members need to possess.

They are (a) orients team to problem-solving situation, (b) organizes and manages team performance, (c) promotes a positive team environment, (d) facilitates and manages task conflict, and (e) appropriately promotes perspective.

The Paradox of Self-Reliance in the Age of Empowerment

They must rely on themselves They muse be able to figure things out with minimal supervision Develop collaborations and coalitions to move their projects along Work comfortable amidst ambiguity and insecurity that surround those projects They must develop their capacities to work in conditions that require self-reliance There is however a paradox at the heart of self-reliance People are only capable of being fully self-reliant when they feel securely attached to trusted others When people are distracted by anxiety—from fear of failure, the lack of certainty, the difficulty of tasks—it is difficult for them to forge ahead and explore new territories The paradox managers face: how to support others who must rely mostly on themselves, without retreating to the traditionally controlling managerial stance.

Discuss how managers can generally improve extrinsic reward and pay for performance plans.

They need to be strategically anchored, based on quantified performance data highly participative actively sold to supervisors and middle managers and teamwork oriented. Annual bonuses of significant size are helpful.

Advantages of Formal, Written Policies

They require managers to think through the policy's meaning, content, and intended use They reduce misunderstanding They make equitable and consistent treatment of problems more likely They ensure unalterable transmission of policies They communicate the authorization or sanction of policies more clearly They supply a convenient and authoritative reference They systematically enhance indirect control and organization wide coordination of the key purposes of policies

Entry Barriers

Threat of Entry Economies of Scale Product Differentiation Capital Requirements Cost Disadvantages Independent of Size Access to Distribution Channels Government Policy

Impression Management Tips

Tone down the star quality - while you may have lots of good ideas, hold off on them until you've gained some credibility with your coworkers by doing your assigned job well Don't be Mr. Personality - be pleasant and polite but tone down your gregariousness until you are more comfortable with your coworkers (and they are more comfortable with you) Get the inside scoop - don't be too blunt in asking how things really get done, start by finding the someone who seems well-connected and ask about work-related preferences, not personalities Give 'em something to talk about - get on the good side of influential people and this may lead to many more people warming to your presence. Get others to "toot your horn".

Research indicates that employees with little tenure are more likely to seek feedback than long-tenured employees.

True

The devil's advocacy method of stimulating functional conflict involves assigning one person the role of critic.

True

The nondisclosure negotiation tactic involves partial disclosure of facts, failure to disclose a hidden fact, failure to correct the opponents' misperceptions, and concealment of the negotiator's own position.

True

Too much team cohesiveness can be a problem for the organization.

True, cohesive teams may go in a direction that is counter to the org's goals. Also, cohesive groups tend to make poorer decisions and are more susceptible to group think.

In general, success leads to cohesion, rather than cohesion causing success

True, the meta-analysis on cohesive work teams found that having some wins in their history made teams more successful than as opposed to the cohesiveness itself causing success.

Members of cohesive teams enjoy more satisfaction and less turnover

True, this is true once they can get over the adjustment period of working as a part of a team.

Discuss French and Raven's responsible use of power.

Upward influence - typically rational persuasion is most common - coalitions are also used Lateral tactics - personal appeal, reciprocity, ingratiation, exchange, and legitimization are also used. Downward - Expert and referent When the leader stands to benefit they may use a personal appeal or ingratiation approach. When it is a peer and/or the objective is clearly in alignment with organizational objectives the rational approach would work best. Responsible and ethical managers strive to use socialized power (primary concern is for others) rather than personalized power (primary concern for self). Research found higher organizational commitment among employees with bosses who used uplifting power than among those with power-hungry bosses who relied on dominating power.

Based on social perception research, which of the following would NOT be advised?

Use mostly subjective measures of performance

_______ attempts to understand how a business creates customer value by examining the contributions of different activities within a business to that value.

Value chain analysis page 145.

Describe what is meant by agile, virtual organizations

Virtual organization: a temporary network of independent companies—suppliers, customers, subcontractors, even competitors—linked primarily by information technology to share skills, access to markets, and costs An agile organization is one that identifies a set of business capabilities central to high-profitability operations and then builds a virtual organization around those capabilities

Define virtual teams and self-managed teams

Virtual teams are physically dispersed work groups that conduct their business via modern information technologies such as the Internet, e-mail, and videoconferences. Self-managed teams are work groups that perform their own administrative chores such as planning, scheduling, and staffing.

Of the following, which aspect is least likely to be a consideration addressed in an organization's mission statement?

What are the number of levels the corporate hierarchy will contain see the discussion under What is a Company Mission, page 21.

vertical integration

When a firm's grand strategy is to acquire firms that supply it with inputs (such as raw materials) or are customers for its outputs (such as warehouses for finished products), vertical integration is involved The main reason for backward integration is the desire to increase the dependability of the supply or quality of the raw materials used as production inputs

Horizontal Integration

When a firm's long-term strategy is based on growth through the acquisition of one or more similar firms operating at the same stage of the production-marketing chain, its grand strategy is called horizontal integration Such acquisitions eliminate competitors and provide the acquiring firm with access to new markets

Understand the creation of sets of long-term objectives and grand strategies options

When strategic planners study their opportunities, they try to determine which are most likely to result in achieving various long-range objectives Almost simultaneously, they try to forecast whether an available grand strategy can take advantage of preferred opportunities so the tentative objectives can be met In essence, then, three distinct but highly interdependent choices are being made at one time The selection of long-range objectives and grand strategies involves simultaneous, rather than sequential, decisions While it is true that objectives are needed to prevent the firm's direction and progress from being determined by random forces, it is equally true that objectives can be achieved only if strategies are implemented

Contrast roles and norms, and specify four reasons norms are enforced in organizations.

While roles are specific to the person's position, norms are shared attitudes that differentiate appropriate from inappropriate behavior in a variety of situations. Norms evolve informally and are enforced because they help the group or organization survive clarify behavioral expectations help people avoid embarrassing situations clarify the group's or organization's central values.

Short-term objectives are more consistent when they clearly indicate all but which one of the following?

Who will make the decisions? see the discussion under Measurable, page 269.

Review the demographic trends pertaining to racial groups, educational mismatches, and an aging workforce.

With respect to racial groups, Asians and Hispanics are expected to have the largest growth in the population between 2000 and 2050, and minority groups will constitute 49.9% of the population in 2050. Minority groups also are experiencing a glass ceiling. There is a mismatch between workers' educational attainment and occupational requirements. The workforce is aging.

Discuss why managers need to carefully handle mixed-gender task groups.

Women face special group dynamics challenges in mixed-gender task groups. Steps need to be taken to make sure increased sexualization of work environments does not erode into illegal sexual harassment.

Explain the model of effective work teams, and specify the two criteria of team effectiveness.

Work teams need three things: (a) a team-friendly organization to provide a support system, (b) individuals with teamwork competencies, and (c) effective teamwork. The two team effectiveness criteria are performance (getting the job done) and team viability (satisfied members who are willing to continue contributing to the team).

The XYZ Organization's mission statement is focused around three indispensable components. Of the following, which one would not be considered one of these components?

XYZ shall hire only individuals with sufficient educational levels so as to be of benefit to our customers and shareholders. see the discussion under Basic Product or Service; Primary Market; Principal Technology, pages 22-23.

Being Politically Proactive

You want others to see your idea as you see it. To do so you need to put yourself in their shoes to understand how your idea will be perceived by them and then tailor your approach accordingly. Political competence is methodical. You have to thoroughly prepare and analyze the organizational landscape to know what direction to go in. Determine potential allies and resisters to more effectively build a coalition. Words and approach matter. Use language they will understand - don't talk over them or belittle their understanding of the issue. Know your audience and what words and language will resonate with them. The small stuff makes a big difference. Even if people disagree with your strategic goals, you may be able to find common ground in more tactical decisions. Agreeing on these issues may build trust that can help them embrace your longer-term ideas in the future.

All of the following would be considered emerging industries of the last decade except _______.

airline services see the discussion under Competitive Advantage and Strategic Choices in Emerging Industries, page 226.

A set of measures directly linked to a company's strategy, financial performance, customer knowledge, internal business processes, and learning and growth is best known as that company's _________.

balanced scorecard page 182.

Market development

commonly ranks second only to concentration as the least costly and least risky of the 15 grand strategies It consists of marketing present products, often with only cosmetic modifications, to customers in related market areas by adding channels of distribution or by changing the content of advertising or promotion Frequently, changes in media selection, promotional appeals, and distribution are used to initiate this approach

When an organization makes a statement such as "We believe that meeting the needs of customers, suppliers, and neighbors is instrumental to fulfilling our mission" the organization is most likely identifying its _________.

company creed see the discussion under Company Philosophy, page 25.

List, describe, evaluate, and give examples of 15 grand strategies that decision makers use in forming their company's competitive plan

concentrated growth market development product development innovation horizontal integration vertical integration concentric diversification conglomerate diversification turnaround divestiture liquidation bankruptcy joint ventures strategic alliances consortia.

_________ is usually associated with incremental innovation.

continuous improvement

An organization's board of directors and administrative officers are most likely to be found at the ________ in its decision making hierarchy.

corporate level

Companies that implement a strategy of ________ continually tailor and shape products and services to fit an increasingly refined definition of the customer.

customer intimacy page 186.

For the past two years the Broken Arrow Corporation has been planning to expand its operations in order to reach out to the market arenas of the world. Its future plans include continuation of its standardized product line to be offered within the new marketplaces. Essentially, the Broken Arrow Corporation desires to _____________.

embrace globalization PG 115

The __________ network is the strongest type of developmental network.

entrepreneurial

When the values and priorities of the parent organization guide the strategic decision making of all its international operations, it can be said there is a/an _______ present within the organization.

ethnocentric orientation PAGE 119

You decide to get rid of your boyfriend or girlfriend by refusing to answer his/her phone calls. You are using a(n) __________ strategy to end the relationship.

extinction

When a situation is characterized by __________, managers should anticipate conflict.

extreme time pressure

Money is an example of a(n) __________ reward.

extrinsic

affective

feelings or emotions about an object

Content Theories Maslow's Need Hierarchy Alderfer's ERG McClelland's Need Herzberg's Motivator-Hygiene

focus on identifying internal factors such as instincts, needs, satisfaction, and job characteristics that energize employee motivation. Content theories do not address how motivation is influenced by the dynamic interaction between an individual and the environment.

The key, routine activities that must be undertaken in each business area - such as marketing, finance, and operations - that provide the business's products and services are called

functional tactics see the discussion under Functional Tactics that Implement Business Strategies, page 271.

Understand the use of financial reward in executive compensation

goal of a bonus compensation plan is to motivate executives and key employees to achieve maximization of shareholder wealth.

Josie is a hard-working administrative assistant. She has a low attention to detail and sometimes handles customer's calls unprofessionally. However, Josie never misses a day of work and is always on time. As a result, her manager rates her positively on many aspects of her performance. This is an example of which perceptual error?

halo

According to Kelley's model of attribution, __________ means that an individual has performed the task in question in a significantly different manner than he or she has performed other tasks.

high distinctiveness

Behavioral

how one intends to act toward someone or something and (

Common functional-level decisions would include all of the following except ___________.

how to best enhance the firm's image and fulfill its social responsibilities

Implementation control is enabled through all of the following operational systems except _______.

incremental innovation see the discussion under Implementation Control, page 358.

the general conditions for competition that influences businesses, which provide similar products and services is best referred to as a/an ________.

industry environment page 91.

The primary strength of the __________ style of handling dysfunctional conflict is that it has a longer lasting impact because it deals with the underlying problem rather than merely with symptoms. It's primary weakness is that it is very time consuming.

integrating

What are organization politics and explain what triggers it.

intentional enhancement of self-interest but the self-interest should be aligned with the org's interests Politics isn't about winning at all costs. It's about maintaining relationships and getting results at the same time."  TRIGGERS Unclear objectives Vague performance measures Ill-defined decision processes Strong individual or group competition Any type of change Organizational politics is defined as intentional acts of influence to enhance or protect the self-interests of individuals or groups. Uncertainty triggers most politicking in organizations. Political action occurs at individual, coalition, and network levels. Coalitions are informal, temporary, and single-issue alliances.

Define the term stress, and describe the model of occupational stress.

is defined as a behavioral, physical, or psychological response to stressors; and stressors are environmental factors that produce stress. According to the occupational model of stress, the stress process begins when an individual cognitively appraises stressors. This appraisal then motivates an individual to choose a coping strategy aimed at reducing stressors, which, in turn, results in a variety of stress outcomes.

Explain what is meant by continuous improvement and how it contributes to incremental innovation

is the process of relentlessly trying to find ways to improve and enhance a company's products and processes from design through assembly, sales, and service

The business strategy decided upon by the Ripper Up Remodeling Corporation is one that engages in value chain activities, which are achieved at a cost that is well below its competitors. In this way, the competitors can require less money for its services than competitors can. It is safe to say this corporation is engaging a __________.

low-cost strategy see the discussion under Evaluating Cost-Leadership Opportunities, page 216.

The extent to which a business concentrates on a narrowly defined market is best referred to as ___________.

market focus see the discussion under Evaluating Market Focus as a Way to Competitive Advantage, page 224.

A group member serving in the harmonizer maintenance role

mediates conflict using reconciliation or humor.

Individual-Organization Value Conflict

occurs when values espoused or enacted by the organization collide with employee's personal values.

Successful performance depends on the right combination

of effort, ability, and skill.

Work values center

on the relative importance of work and career goals.

Reflexively withdrawing one's hand from a hot stove is an example of

respondent behavior.

Strategic disadvantages associated with a divisional organizational structure would include all of the following except _________.

retains functional specialization within each division

The __________ reflects one's tendency to take more personal responsibility for success than for failure.

self-serving bias

What is empowerment and the degrees

sharing varying degrees of power with lower-level employees to tap their full potential Empowerment is not an either-or, all-or-nothing proposition. It can range from merely consulting with employees, to having them actively participate in making decisions, to granting them decision-making authority through delegation. DOMINATION CONSULTATION PARTICIPATION DLEGATION

Measurable outcomes that are designed to be achievable in one year or less of the company's life are called ___________.

short-term objectives see the discussion under Short-Term Objectives, page 267.

Identify five traditional organizational structures and the pros and cons of each

simple organization functional structure divisional structure matrix structure product-team structure. A simple organizational structure is one where there is an owner and a few employees and where the arrangement of tasks, responsibilities, and communication is highly informal and accomplished through direct supervision This type of structure can be very demanding on the owner-manager little need to formalize roles, communication, and procedures. A functional organizational structure is one in which the tasks, people, and technologies necessary to do the work of the business are divided into separate "functional" groups (such as marketing, operations, finance) with increasingly formal procedures for coordinating and integrating their activities to provide the business's products and services. Dividing tasks into functional specialties enables the personnel of these firms to concentrate on only one aspect of the necessary work. This allows use of the latest technical skills and develops a high level of efficiency.. The narrow technical expertise achieved through specialization can lead to limited perspectives and to differences in the priorities of the functional units. A divisional organizational structure is one in which a set of relatively autonomous units, or divisions, are governed by a central corporate office but where each operating division has its own functional specialists who provide products or services different from those of other divisions.A divisional structure allows corporate management to delegate authority for the strategic management of distinct business entities—the division. This expedites decision making in response to varied competitive environments and enables corporate management to concentrate on corporate-level strategic decisions. The matrix organizational structure is one in which functional and staff personnel are assigned to both a basic functional area and to a project or product manager. It provides dual channels of authority, performance responsibility, evaluation, and control, The matrix form is intended to make the best use of talented people within a firm by combining the advantages of functional specialization and product-project specialization.Dual chains of command challenge fundamental organizational orientations. Negotiating shared responsibilities, the use of resources, and priorities can create misunderstanding or confusion among subordinates. These problems are heightened in an international context with the complications introduced by distance, language, time, and culture The product-team structure seeks to simplify and amplify the focus of resources on a narrow but strategically important product, project, market, customer, or innovation.results in much lower coordination costs and, because every function is represented, usually reduces the number of management levels above the team level needed to approve team decisions.

When discussing executive bonus compensation plans, the right to purchase company stock at a fixed price at some future date is called ________.

stock options see the discussion under Stock Options, page 279.

According to the social information processing model, the __________ stage involves depositing information in long-term memory.

storage and retention

Explain how outsourcing can create agile, virtual organizations, along with its pros and cons

strategic alliances, a boundaryless structure, an ambidextrous learning approach, and Web-based organization. PROS It can lower costs incurred when the activity outsourced is done in-house. It can reduce the amount of capital a firm must invest in production or service capacity. The firm's managers and personnel can concentrate on mission-critical activities. This concentration and focus allow the firm to control and enhance the source of its core competitive advantage. Careful selection of outsourced partners allows the firm to potentially learn and develop its abilities through ideas and capabilities that emerge from the growing expertise and scope of work done by the outsource partner for several firms. CONS Outsourcing involves loss of some control and reliance on "outsiders." Outsourcing can create future competitors. Skills important to a product or service are "lost." Crafting good legal agreements, especially for services, is difficult. The company may get locked into long-term contracts at costs that are no longer competitive. Cost aren't everything: What if my supplier underbids? Outsourcing can lead to increasingly fragmented work cultures where low-paid workers get the work done with little initiative or enthusiasm.

The We Have It Your Way Organization has an established "game plan" for its business operations. This game plan reflects the company's awareness of how and where it should compete and against whom the competition should take place. It can be stated this organization has an established _________.

strategy

According to the model of work team effectiveness presented in Figure 11-1, performance and viability are both

team effectiveness criteria.

Value congruence involves

the amount of value agreement between employee and employer.

The social factors that affect a firm involve all of the following except _______.

the propensity of people to spend page 82

an organization's formal, written polices have several advantages. Which one of the following would not be considered one of these advantages?

they decrease the need for elaborate business strategy implementation processes. see the discussion under Creating Policies that Empower, page 276.

Dylan is independently wealthy but works very hard at his job. He believes in the values of the company and enjoys devoting time to accomplishing the company goals. Dylan most likely has _________.

Affective commitment

All of the following are tips for women to advance to senior positions and career success except:

Don't boast about accomplishments

What are hard tactics (summarize lessons from research)

EXCHANGE:: Promising some benefits in exchange for complying with a request. COALITION BUILDING: Persuading by seeking the assistance of others or by noting the support of others. LEGITIMATING: Pointing out one's authority to make a request or verifying that it is consistent with prevailing organizational policies and practices. PRESSURE: Seeking compliance by using demands, threats, or intimidation.

Interpersonal value conflict occurs when values espoused and enacted by the organization collide with employees' personal values.

FALSE

People with proactive personalities tend to experience less individual, team, and organizational success.

FALSE

Research in the area of resistance to change revealed that high levels of self esteem were negatively associated with resistance to change.

FALSE

The modular structure overlays a vertical and with a horizontal structure which results in two command structures - functional and divisional.

FALSE

Values are relatively unstable and do not influence our behaviour.

FALSE

Family-supportive philosophy is more important than specific programs. In other words a company can have a policy but if the culture is one that discourages people taking advantage of this policy or it's perceived as career suicide, then it won't really serve it's purpose.

False

Managers perceived as having higher work-life balance were rated MORE not LESS promotable.

False

What are French and Raven's five bases of power

Position - derived from one's position and status within the organization REWARD: If you do it I'll give you something COERCIVE: If you don't do it something bad will happen LEGITAMITE: Do it because the boss asks you to Can be positive or negative Personal - derived from one's personal characteristics, relationship with others, and behavior towards others EXPERTt: Do it because I know a lot about this subject REFERENTt: Do it because you like me

What are soft influence tactics (summarize lessons from research)

RATIONAL PERSUASION: Using logical arguments and facts to persuade another that a desired result will occur. INSPIRATIONAL APPEAL: Arousing enthusiasm by appealing to one's values and beliefs CONSULTATION: Asking for participation in decision making or planning a change INGRATIATION: Getting someone to do what you want by putting that person in a good mood or getting him or her to like you. PERSONAL APPEAL: Appealing to feelings of loyalty and friendship before making a request

Identify and briefly explain seven managerial implications of social perception.

Social perception affects hiring decisions performance appraisals leadership perceptions communication and interpersonal influence counterproductive work behaviors physical and psychological well-being, the design of Web pages. Inaccurate schemata or racist and sexist schemata may be used to evaluate job applicants. Similarly, faulty schemata about what constitutes good versus poor performance can lead to inaccurate performance appraisals. Invalid schemata need to be identified and replaced with appropriate schemata through coaching and training. Further, managers are advised to use objective rather than subjective measures of performance. With respect to leadership, a leader will have a difficult time influencing employees when he or she exhibits behaviors contained in employees' schemata of poor leaders. Because people interpret oral and written communications by using schemata developed through past experiences, an individual's ability to influence others is affected by information contained in others' schemata regarding age, gender, ethnicity, appearance, speech, mannerisms, personality, and other personal characteristics. It is very important to treat employees fairly, as perceptions of unfairness are associated with counterproductive work behaviors.

A learning organization is one that proactively creates, acquires, and transfers knowledge and that changes its behavior on the basis of new knowledge and insights.

TRUE

Among the Big Five personality dimensions, conscientiousness had the strongest positive correlation with job and training performance.

TRUE

Complex, challenging and autonomous jobs tend to enhance perceived self-efficacy while boring, tedious jobs tend to lower perceived self-efficacy.

TRUE

Conclusions from a meta-analysis suggest ingratiation (making the boss feel good) can slightly improve your performance appraisal results and make your boss like you significantly more.

TRUE

Current day minority groups do not experience their own glass ceiling.

TRUE

Emotions are contagious

TRUE

Generally speaking, the more narrow the span of control in an organization, the higher the organization's administrative costs.

TRUE

Hardiness refers to a personality trait that allows a person to neutralize stress by perceptually or behaviorally transform negative stressors into positive challenges.

TRUE

In Lewin's change model, the "unfreezing" stage involves getting employees to become dissatisfied with the old way of doing things.

TRUE

Internal dimensions of diversity contain an element of control or choice.

TRUE

Low self-monitors are sometimes criticized for being on their own planet and insensitive to others.

TRUE

Masking one's true feelings may cause long-term psychological and physical problems.

TRUE

One of the benefits of innovation identified in the Model of Innovation was improving on services and products the organization already has.

TRUE

Self-esteem is a belief about one's own self-worth based on an overall self-evaluation.

TRUE

Team performance is positively related to a team's diversity in gender, ethnicity, age and education.

TRUE

Value congruence is associated with positive job outcomes such as career success, satisfaction and lower turnover intentions.

TRUE

Whether or not an organization meets or exceeds its goals is one way to judge the effectiveness of an organization.

TRUE

Women's felt emotions are no different than men's.

TRUE

__________ is an example of an external dimension of diversity.

TRUE

Summarize the managerial challenges and recommendations of sex-role, age, racial and ethnic, and disability stereotypes.

The key managerial challenge is to reduce the extent to which stereotypes influ encedecision making and interpersonal processes throughout the organization. Training can be used to educate employees about the problem of stereotyping and to equip managers with the skills needed to handle situations associated with managing employees with disabilities. Because mixed-group contact reduces stereotyping, organizations should create opportunities for diverse employees to meet and work together in cooperative groups of equal status. Hiring decisions should be based on valid individual differences, and managers can be trained to use valid criteria when evaluating employee performance. Minimizing differences in job opportunities and experiences across groups of people can help alleviate promotional barriers. It is critical to obtain top management's commitment and support to eliminate stereotyping and discriminatory decisions.

A company's strategic plan outlines the organization's long-term direction and actions necessary to achieve planned results.

True

Work flexibility is important in promoting work-family balance -research findings indicate that type of assignment and project based work can allow employees to focus on work more on occasion, when necessary, than family, and vice versa. This suggests that we are not talking about equal time splitting, but a fluid emphasis on work or family that shifts with the employee needs being the key to work/life balance. Work/life researchers have begun to espouse the notion that work and family are not opposites and should not be balanced but instead organizations should find ways to better enable employees to integrate both important and satisfying aspects of one's life.

True

According to the __________ model of job satisfaction, satisfaction is a function of how "fairly" an individual is treated and occurs when one's perception that work outcomes, relative to inputs, compare favorably with a significant other's outcomes/inputs.

equity

When measuring organizational effectiveness, the __________ approach is appropriate when powerful stakeholders can significantly benefit or harm the organization.

strategic constituencies

According to Clayton Christensen, __________ are incremental innovations that improve product or process performance.

sustaining technologies

A(n) __________ coping strategy consists of using methods such as relaxation, meditation, medication, or exercise to manage stress.

symptom management

More women in the paid workforce, more dual-income families, more single working parents, and an aging population that gives mid-career employees day care or elder care responsibilities are all factors serving to increase

work/family life conflict.