exam 1

The study of how order and pattern arise from very complicated, apparently chaotic systems is known as A. total quality management. B. complexity theory. C. quality assurance. D. systems analysis. E. transformation process.

B. complexity theory.

A company that barters goods for other goods is involved in A. outsourcing. B. countertrading. C. importing. D. exporting. E. franchising.

B. countertrading.

Management is defined as?

1. The pursuit of organizational goals efficiently and effectively by 2. Integrating the work of people through 3. Planning, organizing, leading, and controlling the organization's resources

_________ means taking risks to try to create a new enterprise. A. Entrepreneurship B. Incorporation C. Franchising D. Joint venturing E. Acquisition

A. Entrepreneurship

Which of the following is not an area in which an organization must stay ahead of its competitors to achieve competitive advantage? A. Environmental action B. Being responsive to customers C. Innovation D. Quality E. Efficiency

A. Environmental action

Who was known as "the father of industrial psychology"? A. Hugo Munsterberg B. Mary Parker Follett C. Max Weber D. Elton Mayo E. Frederick Taylor

A. Hugo Munsterberg

______ focuses on managing the production and delivery of an organization's products or services more effectively. A. Operations management B. Systems management C. Scientific management D. A learning organization E. Administrative management

A. Operations management

An organization's board of directors is part of its ______ environment. A. internal B. uncontrollable C. external D. task E. general

A. internal

Which of the following is considered a demographic force? A. Integration of the European Union B. An increase in multigenerational households C. Interest in healthy living D. A well-developed legal system E. Rising unemployment rates

B. An increase in multigenerational households

Deming proposed that when something goes wrong, chances are __________ that the system is at fault, and __________ that the individual worker is at fault. A. 15%; 85% B. 35%; 65% C. 50%; 50% D. 65%; 35% E. 85%; 15%

E. 85%; 15%

China and the United States are both part of what trading bloc? A. NAFTA B. EU C. ASEAN D. Mercosur E. APEC

E. APEC

For convenience, you purchase tickets to see the Black Keys through StubHub rather than from the venue itself. In this case, StubHub acts as a A. strategic ally. B. supplier. C. repackager. D. special-interest group. E. distributor.

E. distributor.

First-line managers make long term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it.

FALSE

For a jewelry designer, gold and silver rings, earrings, and bracelets are considered system inputs.

FALSE

Integration management is the implementation of systems and practices to increase the sharing of knowledge and information throughout an organization.

FALSE

Studying management is likely to help you once you are in a manager role, but is unlikely to be beneficial before then.

FALSE

The Mercosur is composed of countries in southeast Asia

FALSE

The percentage of the labor force represented by unions has steadily increased since the 1950s.

FALSE

The purpose of a code of ethics is to state an organization's expectations for the behavior of all its external stakeholders.

FALSE

The purpose of granting "most favored nation" status to another country is to promote tourism

FALSE

The rate at which one country's currency can be swapped for another country's currency is called the substitution rate.

FALSE

Using cash from newer investors to pay off older ones is known as a Kohlberg scheme.

FALSE

An effective manager has a multiplier effect on the organization, meaning his or her influence is multiplied beyond the results achievable by just one person.

TRUE

An inherent weakness of the European Union is that stronger countries may have to rescue weaker ones that are in financial crisis.

TRUE

An interest in health and fitness leading to a boost in sales of athletic shoes demonstrates a sociocultural force.

TRUE

An organization's value system stressing financial performance may conflict with its value system stressing cohesion among employees.

TRUE

Distributors have been hurt by the rise in popularity of the Internet.

TRUE

Dumping is the practice of a foreign company exporting products abroad at a lower price than the price in the home market, or even below the costs of production, in order to drive down the price of the domestic product.

TRUE

Entrepreneurship means taking risks to try to create a new enterprise.

TRUE

Free trade is the movement of goods and services among nations without political or economic obstruction

TRUE

Having to attend too many meetings or feeling a lack of respect are typical reasons that some people don't find being a manager fulfilling.

TRUE

One reason e-business is so important is that the Internet dramatically lowers the cost of communication.

TRUE

One way to avoid a tariff is to create a subsidiary to produce the product in the foreign country imposing that tariff

TRUE

Oscar is a manager of a downtown hotel and is currently considering the pricing of rooms for the upcoming holiday season. He would be wise to use the mathematical tools of management science to help him with this decision.

TRUE

Over the years, Toyota has used a variety of operations management-based "lean management" techniques to sell its cars on the basis of superior quality.

TRUE

Personality tests can be used to identify potentially dishonest people before they are hired.

TRUE

Peter Drucker was the author of The Practice of Management and has been described as the creator and inventor of modern management.

TRUE

Philanthropy means making charitable donations to benefit humankind.

TRUE

Sales data would be considered feedback in a system.

TRUE

Shareholders of Chesapeake Energy sued the company, demanding corporate governance reforms.

TRUE

Successful international managers are most likely to be geocentric rather than ethnocentric or polycentric

TRUE

Taking care of the customer applies equally well to nonprofit and for-profit businesses

TRUE

Colin takes notes at executive council meetings and prepares summaries to present to middle managers and supervisors at a monthly meeting. This task is part of a(n) _______ role. A. disseminator B. entrepreneur C. monitor D. leadership E. visionary

A. disseminator

Standards of right and wrong that influence behavior are known as A. ethics. B. morals. C. a value system. D. ethical behavior. E. values.

A. ethics.

Christine prefers not to deviate from the practices she has always used as a U.S. manager, even though she is now working at an Asian subsidiary. She has been heard saying that she is "just ensuring the job gets done right." Christine is most likely a(n) ________ manager. A. ethnocentric B. concentric C. prejudicial D. polycentric E. geocentric

A. ethnocentric

The __________ is the rate at which one country's currency can be exchanged for another country's currency. A. exchange rate B. GATT C. terms of transaction D. interest rate E. return rate

A. exchange rate

Managers who make short-term operating decisions and direct the daily tasks of the nonmanagerial employees are called A. first-line managers. B. middle managers. C. general managers. D. functional managers. E. initial managers.

A. first-line managers.

After a large chemical fire, Eric took responsibility publicly for the failure of his employees to follow workplace safety standards, and indicated that several of them had been placed on leave. Here, Eric was acting in a ______ role. A. leadership B. negotiator C. liaison D. authority E. entrepreneur

A. leadership

People who can claim an organization as their legal property are called A. owners. B. the board of directors. C. financial institutions. D. customers. E. employees.

A. owners.

The EU has recently agreed to cut the taxes it charges on bananas imported from Central and South America. This tax is a type of A. embargo. B. tariff. C. import quota. D. predatory selling. E. boycott.

B. tariff.

Distributors are part of the ______ environment of organizations. A. alliance B. task C. sociopolitical D. general E. internal

B. task

Which of the following is a primary reason that companies expand internationally? A. Political expediency B. Lower labor costs C. Higher tariffs D. More diverse employees E. Prevention of counterfeiting

B. Lower labor costs

The movement of goods and services among nations without political or economic obstruction is called A. trade policy. B. free trade. C. trade protectionism. D. privatization. E. trade embargo.

B. free trade.

Seref purchases handcrafted Turkish rugs overseas and brings them to the United States to sell in his retail store. He is involved in A. outsourcing. B. countertrading. C. importing. D. franchising. E. exporting.

C. importing.

Finding ways to deliver new or better goods or services is called A. advancement. B. streamlining. C. innovation. D. efficiency. E. quality control.

C. innovation

Billie runs a successful cell-phone accessory store online. She loves designing and marketing the products, and she manages others who do the production, but the shipping had become a real problem. She decided to contract with FedEx to handle this logistical part of her business. Billie is A. countertrading. B. franchising. C. outsourcing. D. licensing. E. privatizing.

C. outsourcing.

Two different project teams recently submitted proposals for very promising ideas, but the budget will not allow both to go forward this year. Amanda is making the tough decisions about which should be the focus this time, as a part of her ______ role. A. leadership B. disseminator C. resource allocator D. negotiator E. entrepreneur

C. resource allocator

When conducting business in English in Asia, if the answer to a question is "yes," one should assume that means A. with certainty. B. no. C. the question is understood. D. I can be persuaded. E. this is fair.

C. the question is understood.

Conceptual skills are particularly important for ______ managers. A. first-line B. functional C. top D. middle E. general

C. top

Centralization

Centralized authority: important decisions are made by higher level managers

To be ______ as a manager means to make the right decisions and successfully carry them out to achieve goals. A. productive B. ethical C. efficient D. effective E. innovative

D. effective

"True is better than new" is one of the truths of A. scientific management. B. the human relations movement. C. operations management. D. evidence-based management. E. management science.

D. evidence-based management.

Employees at Zachary's Chicago Pizza in California can purchase company stock and thus become owners through a device called A. a trustees arrangement. B. participative management. C. bond sharing. D. an employee stock ownership plan. E. profit sharing.

D. an employee stock ownership plan.

A __________ is a person or organization that helps another organization sell its goods and services to customers. A. financier B. supplier C. strategic ally D. distributor E. special-interest group

D. distributor

If your Chinese coworker in Hong Kong tells you that you have gained weight, you should interpret this comment as A. an insult. B. flirtation. C. a misunderstanding. D. friendliness. E. too personal.

D. friendliness.

A ______ manager is responsible for just one organizational activity. A. specialist B. first-line C. singular D. functional E. top-level

D. functional

The concept of a "flat" world means A. employees are learning to suppress negative emotion in the workplace. B. corporations are developing a preference for a new, flatter organizational structure. C. a recession now slows the economies of most nations simultaneously. D. globalization has leveled the playing field for emerging economies. E. businesspeople are now more conservative in their approach to investment.

D. globalization has leveled the playing field for emerging economies.

Paul has been tasked with creating a new microsite on his engineering company's intranet. The site will house company-approved design procedures and efficiency strategies for all employees. Creating the design microsite is a form of A. strategy management. B. e-management. C. project management. D. knowledge management. E. morale management.

D. knowledge management.

A U.S. company agrees with a foreign company to start a new enterprise together in a foreign country, sharing the risks and the rewards. This is called a A. countertrade. B. greenfield venture. C. wholly owned subsidiary. D. strategic alliance. E. maquiladora.

D. strategic alliance.

The music industry has been changed dramatically by consumers' ability to download songs from the Internet. This is an example of ______ forces in an organization's ______ environment. A. technological; task B. economic; general C. sociocultural; general D. technological; general E. economic; task

D. technological; general

In labor disputes, hourly workers are typically represented by ________, while salaried workers are represented by professional associations. A. special-interest groups B. government regulators C. mass media D. unions E. financial institutions

D. unions

Jessica is an employee in a manufacturing plant who works the graveyard shift, midnight to 8 a.m. One night, she saw one of her managers dumping some chemicals down a storm drain in the parking lot. When she confronted him, he said this was standard procedure for some waste materials to avoid other costly disposal measures. When Jessica wrote a letter about it to the local newspaper she was a(n) A. victim's advocate. B. activist. C. gossip. D. whistle-blower. E. disloyal employee.

D. whistle-blower.

Bradley was working for the summer in Costa Rica. He had made arrangements with a business associate to give him a ride to a nearby town at 10 a.m. He was very upset when his ride had still not appeared by 10:30. Bradley did not understand that ______ time is common in Latin America. A. variable B. monochronic C. multitask D. delayed E. polychronic

E. polychronic

The ______ viewpoint sees organizations as entities made up of interrelated parts known as inputs, outputs, transformation processes, and feedback. A. classical B. closed loop C. contingency D. quality-management E. systems

E. systems

Managers who are future oriented, dealing with uncertain, highly competitive conditions, and who stay alert to long-run opportunities and problems are most likely to be A. first-line managers. B. functional managers. C. middle managers. D. general managers. E. top managers.

E. top managers.

When a government uses measures like tariffs and import quotas, it is called A. ethnocentrism. B. free trade. C. a trade bloc. D. an embargo. E. trade protectionism.

E. trade protectionism.

Fairness in hiring practices is an example of an organization's A. cost-benefit analysis. B. morality. C. competitive advantage. D. long-term interests. E. values.

E. values.

A tariff is a limitation on the numbers of products allowed into a country, imposed by its government to protect domestic industries

FALSE

A vice president of production is a general manager

FALSE

Arabs prefer a larger interpersonal space when communicating than Americans.

FALSE

As a result of recent negotiations, the General Agreement on Tariffs and Trade (GATT) is expected to supersede the WTO by 2015.

FALSE

As of 2011, the United States was the world's top exporter

FALSE

As part of the scientific management viewpoint, Taylor suggested paying all employees doing the same job the same wage.

FALSE

Automated telephone systems are typically both very effective and very efficient

FALSE

Bay-traders are those who trade seafood from the Chesapeake Bay for other goods rather than selling it on the open market.

FALSE

Because of radical changes to modern business practice, theoretical perspectives of management provide a historical context but unfortunately do not enhance understanding of the present.

FALSE

Behavioral science research has shown that competition is superior to cooperation in promoting achievement and productivity.

FALSE

Competitors compete solely for customers and raw materials.

FALSE

Corporate social responsibility (CSR) is the notion that corporations are expected to create a positive and enriching environment for employees.

FALSE

Countertrading refers to a company producing goods domestically and selling them outside the country

FALSE

Customers have more faith in health insurance companies to handle complaints than they have in apparel outlets.

FALSE

Despite continued immigration, the proportion of racial or ethnic groups in the United States is expected to be stable well into the next century.

FALSE

Douglas McGregor was one of the pioneers of early behaviorism.

FALSE

Efficiency and effectiveness are terms used interchangeably and equivalently in management

FALSE

Entrepreneurs typically have a much higher need for achievement and a stronger belief in personal control of destiny than do typical managers.

FALSE

Ethical behavior is defined as a behavior that creates the greatest good for the greatest number of people.

FALSE

Ethical responsibility is at the top of Carroll's corporate social responsibility pyramid.

FALSE

Evidence-based management means translating principles from promising new theories into organizational practice.

FALSE

Exceptional managers have a gift that can't be taught

FALSE

Facilities management is concerned with work scheduling, productions planning, and optimal levels of inventory.

FALSE

Factors such as unemployment conditions and interest rates would be considered part of demographic forces in an organization's general environment.

FALSE

Far East Chop House is an American restaurant that purchases beef from a Nebraska company that raises Japanese cattle. The Nebraska company would best be described as a distributor for the Far East.

FALSE

Geocentric policies have been linked to recruiting difficulties and high turnover

FALSE

Globalization is defined as the elimination of all trade barriers worldwide.

FALSE

Good executive functioning includes heavy multitasking and answering every e-mail nearly instantly.

FALSE

Having a Board of Directors whose outside membership is chosen by the CEO or works closely with the company itself strengthens corporate governance.

FALSE

Having require technical skills is most important among top managers at the highest level of leadership levels.

FALSE

If you can describe a job precisely, or write rules for doing it, it is protected against offshoring

FALSE

In a corporation, the chief executive is typically elected by the stockholders of the firm.

FALSE

In an organization's environment, internal stakeholders include the customers of an organization.

FALSE

In business, the extended environment is another name for general environment.

FALSE

In interpersonal managerial roles, a manager acts as entrepreneur, disturbance handler, or negotiator.

FALSE

Maquiladoras are manufacturing plants allowed to operate in South and Central America with special privileges in return for employing citizens in these countries.

FALSE

Meetings that are connected via telecommuting use video and audio links along with computers to let people in different locations see, hear, and talk with one another

FALSE

Most managers require lengthy, uninterrupted periods during the regular workday to accomplish their work and make themselves unavailable to subordinates to create them.

FALSE

Most people prefer to have a combination of a high level skill and low level of challenge while at work

FALSE

The psychological mechanism of motivated blindness discourages cheating among students.

FALSE

The two parts of the external environment are the task environment and the socio-political environment.

FALSE

Under the differential rate system proposed by Frederick Taylor, employees should be paid on the basis of seniority.

FALSE

When managing for competitive advantage, the first "law" of business is "take care of the shareholders"

FALSE

When the independent, high-end U.S. Grant hotel in downtown San Diego joined Starwood's Luxury Collection of hotels to gain "worldwide exposure," it was an example of a distributor relationship.

FALSE

Whereas generations ago organizations rewarded employees for their efficiency, today the emphasis is on length of service.

FALSE

The buying and selling of goods or services over computer networks is known as e-exchange.

FALSE (e-commerce)

According to Mintzberg's research, managers rely more on verbal than on written communication because of the time it takes to accomplish the latter.

TRUE

According to the GLOBE project, the United States is among the countries highest in the cultural dimension of performance orientation.

TRUE

Air travel and electronic media have made the global village phenomenon possible.

TRUE

An example of a trading bloc is the European Union.

TRUE

E-commerce refers to the buying and selling of products and services through computer networks.

TRUE

Ethics training can enhance high ethical standards in the workplace, even when a company has of a strong code of ethics.

TRUE

Which of the following is most likely to help build a learning organization? A. Direct staff to avoid failure at all costs. B. Create chaos to support new-idea generation. C. Restrict training to save expenses and improve the balance sheet. D. Encourage heated debates on every proposed idea. E. Create a psychologically safe environment.

E. Create a psychologically safe environment.

External stakeholders include labor unions.

TRUE

Hugo Munsterberg suggested that psychologists could contribute to industry by studying jobs and determining which people are best suited to specific jobs.

TRUE

Human trafficking is unethical according to the moral-rights approach

TRUE

If Toys R Us provides the use of its name plus its operating know-how to a company in Poland in return for an upfront fee plus a percentage of the profits, Toys R Us would be participating in franchising.

TRUE

If a country's currency drops dramatically and it is unable to import the goods it needs, then an exporter who trades with that country may turn to countertrading.

TRUE

Internal stakeholders include the employees of an organization.

TRUE

Mexico is part of NAFTA

TRUE

Motion studies were used to assess and improve efficiency as part of the classical viewpoint

TRUE

Offshoring is defined as using suppliers outside the home country to provide labor, goods, or services

TRUE

One advantage of e-business is that organizations and teams are no longer as bound by time zones and locations.

TRUE

Opportunity entrepreneurs are those who start their own business out of a burning desire rather than because they lost a job.

TRUE

Organizing is the arranging of tasks, people, and other resources to accomplish work.

TRUE

Part of evidence-based management is understanding the potential danger in conventional wisdom about management.

TRUE

Project management software allows managers to plan and schedule the people, costs, and resources to complete a project on time.

TRUE

Proponents of evidence-based management would say there are few really new ideas

TRUE

Recently, the International Monetary Fund has had a high-profile role in assisting some weaker European countries, including making loans to Greece, Portugal, and Ireland.

TRUE

Some firms do not have a board of directors.

TRUE

Strategic allies may be organizations that are traditional rivals but combine their efforts to overcome a new competitor or other threat in the environment.

TRUE

Studies show that students who cheat and don't actually do the assigned work are more likely to fail anyway

TRUE

Studying theoretical perspectives of management can be a source of new ideas.

TRUE

The World Health Organization is an example of a multinational organization

TRUE

The first person to identify the major functions of management was Henri Fayol.

TRUE

The recent recession has caused an increasing number of Americans to look for work overseas

TRUE

The standards of right and wrong that influence behavior are called ethics.

TRUE

The task environment consists of groups that present workers with daily tasks to handle

TRUE

There are managers at three levels of an organization: top, middle, and first-line.

TRUE

There are stakeholders in both an organization's internal and its external environments.

TRUE

Time and task management are major challenges for every manager.

TRUE

To a commercial airline, the Federal Aviation Agency (FAA) is an example of a stakeholder.

TRUE

To be efficient in management means to use resources wisely and cost effectively

TRUE

When Shannon reviews and determines that she has four underperforming salespeople with whom she will need to talk, she is performing the controlling managerial function.

TRUE

When U.S. companies hire UPS to conduct some of their logistics functions for them it is known as outsourcing

TRUE

When a manager is motivating others to work hard and achieve the organization's goals, she is engaged in the management function of leading.

TRUE

what is an Organization

a group of people who work together to achieve some specific purpose

what is Sustainability?

economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs

Contingency viewpoint

emphasizes that a manager's approach should vary according to- that is, be contingent on- the individual and the environmental situation

suprasystem

general environment

Unity of command

in which an employee should report to no more than one manager

Mintzberg defined three broad managerial roles: ________, informational, and decisional.

interpersonal

Motivating, directing, and otherwise influencing people to work hard to achieve the organization's goals is the management function known as

leading.

unity of direction

management principal based on the concept that all team members involved in the same activities must share the same objective. all work toward a common goal using the same plan to reach the shared objective

Interpersonal roles

managers interact with people inside and outside their work units figurehead, leader, liaison

renumeration

one component of reward management, the compensation or pay they receive for there work

Competitors

people or organizations that compete for customers or resources

Taylor

pioneered scientific management, which emphasized the scientific study of work methods to improve the productivity of individual workers. Based on motion studies

Authority

refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources

________ is defined as the pursuit of organizational efficiently and effectively.

Management

A problem typically associated with interconnected databases on the Internet is the potential to overwhelm employees with too much information

TRUE

A set of interrelated parts that operate together to achieve a common purpose is called a system.

TRUE

A wholly owned subsidiary is the global expansion strategy with the highest risk and investment.

TRUE

Abraham Maslow and Douglas McGregor were theorists in the human relations movement.

TRUE

Abraham Maslow would say that some human needs must be satisfied before others.

TRUE

According to Harvard psychology professor Ellen Langer, one barrier to flexibility is mindlessness.

TRUE

According to Milton Friedman, the social justification of a business's existence is in its benefit to stockholders, creation of jobs, and expansion of the economy.

TRUE

A foreign subsidiary that is totally owned and controlled by an organization is called a multinational

FALSE

A situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal is called a moral challenge.

FALSE

What is a learning organization? What competitive advantage do learning organizations hold?

A learning organization is one that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge. Learning organizations can adapt more quickly to changing conditions in the environment, and bring the knowledge and experience of a wide range of employees to bear on new problems. Organizations must continually learn new things or face obsolescence.

Camille runs a consulting business that assists in the hiring process, using a team of psychologists to help companies to better understand their specific jobs and the type of employees that are best suited to fill them. Her business relies on the work of which behavioral theory pioneer? A. Hugo Munsterberg B. Douglas McGregor C. Mary Parker Follett D. Frederick Taylor E. Elton Mayo

A. Hugo Munsterberg

______ focuses on using mathematics to aid in problem solving and decision making. A. Management science B. Behavioral science C. TQM D. Scientific management E. Administrative management

A. Management science

The economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs is known as A. sustainability. B. ethical growth. C. economic security. D. strategic planning. E. philanthropic growth.

A. sustainability.

The principal organization that provides low-interest loans to developing nations for improving, for example, their transportation or education systems is A. the World Bank. B. the World Trade Organization. C. the International Monetary Fund. D. APEC. E. GATT.

A. the World Bank.

Division of labor

AKA work specialization is the arrangement of having discrete parts of a task done by different people. One steers the boat the other works the nets

What are the advantages to your career of working overseas?

Anyone with international experience is likely to have a leg up, higher salary, and be more marketable. Foreign experience demonstrates independence, resourcefulness, and entrepreneurship, according to management recruiters. People who have worked abroad can generally move quickly and are nimble with inquiring minds. People who have worked and supported themselves overseas tend to be adaptive and inquisitive—valuable skills in today's workplace.

A moral-rights approach to ethical behavior taken by a manager would often result in her performing a "cost-benefit" analysis.

FALSE

Which of the following is an example of an external stakeholder for the department store chain Macy's? A. A member of the Macy's board of directors. B. A customer who purchases a mattress at Macy's. C. A sales associate at Macy's. D. Owners of Macy's stock. E. The CEO of Macy's.

B. A customer who purchases a mattress at Macy's.

Which of the following is a major trading bloc? A. GATT B. APEC C. GLOBE D. IMF E. WTO

B. APEC

A multinational corporation is a nonprofit organization with operations in several countries

FALSE

Which of the following viewpoints emphasized the importance of understanding human actions and of motivating employees toward achievement? A. Qualitative viewpoint B. Behavioral viewpoint C. Classical viewpoint D. Contingency viewpoint E. Management science viewpoint

B. Behavioral viewpoint

Of the following, which is one of the functions of management described by Fayol? A. Accommodating B. Coordinating C. Arbitrating D. Collaborating E. Tasking

B. Coordinating

__________ is the practice of a foreign company exporting products abroad at a lower price than the price in the home market or even below the costs of production in order to drive down the price of the domestic product. A. Export crashing B. Dumping C. Predatory selling D. Loss transaction E. Alien advantage

B. Dumping

The ________ has had a role in trying to shore up some weaker European countries during the recent financial crisis, including making loans to Greece, Portugal, and Ireland. A. World Bank B. IMF C. WTO D. EU E. GATT

B. IMF

Which of the following statements about a manager's worklife is not among the findings of management scholar Henry Mintzberg? A. Managers work long hours. B. Most managerial tasks require lengthy periods of time for completion. C. Managers rely more on verbal than on written communication. D. Managers work at an intense pace. E. Managers' work is characterized by variety.

B. Most managerial tasks require lengthy periods of time for completion.

The contemporary perspective includes which of the following viewpoints? A. Behavioral B. Systems C. Quantitative D. Classical E. Rational

B. Systems

Amanda was a tough manager and made it a regular practice to check up on her staff, looking for cheating on timesheets and people coming back late from lunch. Her employees were often dissatisfied with Amanda since she was a(n) ________ manager. A. operations B. Theory X C. soldiering D. Hawthorne E. administrative

B. Theory X

Which of the following is the most likely payoff of studying management as a discipline? A. You will understand how to brand your organization. B. You will understand how to relate to and interact with your supervisors and co-workers. C. You will understand how to manage your family and close friends more effectively. D. You will understand how to deal with the media in a crisis. E. You will understand how to advance your career without guilt.

B. You will understand how to relate and interact with your supervisors and co-workers.

A nation's __________ is the shared set of beliefs, values, knowledge, and patterns of behavior common to its people. A. economic policy B. culture C. social pattern D. demography E. political process

B. culture

By mid-century, the percentage of Hispanics (of any race) in the U.S. population is expected to ______, and the percentage of non-Hispanic whites is expected to ______. A. stay the same; increase B. double; decrease C. decrease; increase D. double; increase slightly E. stay the same; decrease

B. double; decrease

Customers lined up for hours to be among the first to purchase the new iPad. The excitement for the product would be considered ______ in the system. A. an input B. feedback C. an output D. affirmation E. a transformation process

B. feedback

Joseph Juran defined quality as ________, which meant that a product or service should satisfy a customer's real needs. A. value orientation B. fitness for use C. need fulfillment D. functional capacity E. feature superiority

B. fitness for use

When a manager at a software company is determining whether to hire more full-time programmers or possibly more temporary ones, he is engaged in A. planning. B. organizing. C. managing. D. leading. E. controlling.

B. organizing.

Behavioral science relies on __________ for developing theories about human behavior that can help managers. A. rules of thumb B. scientific research C. intuition D. simulations E. trial and error

B. scientific research

A large athletic shoe company has agreed to work with a smaller company that has a new line of athletic clothing since the bigger firm does not have a similar offering and the smaller firm has limited experience in marketing and distribution. The two firms could be described as A. union partners. B. strategic allies. C. distributors. D. special interests. E. regulatory institutions.

B. strategic allies.

Two organizations who join forces to achieve advantages neither can perform as well alone would be called A. union partners. B. strategic allies. C. distributors. D. special interests. E. regulatory institutions.

B. strategic allies.

In the traditional management pyramid, managers are classified into ______ levels. A. two B. three C. four D. five E. six

B. three

Though many advantages have been linked to e-business, studies show that employees are less productive when dealing with excessive ______ volume. A. videoconferencing B. meeting C. e-mail D. telecommuting E. collaborative computing

C. e-mail

The economic community that includes China and Thailand is the A. NAFTA. B. EU. C. ASEAN. D. Mercosur. E. IMF.

C. ASEAN.

Shareholders at Chesapeake Energy were most concerned about what corporate governance issue when they sued the company? A. Sustainability B. Philanthropy C. Executive compensation D. Embezzlement E. Intrapreneurship

C. Executive compensation

According to researcher Robert Katz, which of the following is one of three principal skills acquired by experienced managers? A. Intuitive B. Evaluative C. Human D. Comprehensive E. Coordination

C. Human

Which of the following statements about the mass media is true? A. Johnson & Johnson, maker of Tylenol, has an unblemished record when it comes to successful media strategy during a crisis. B. The power and the reach of mass media are declining. C. In a crisis, the media should be used to communicate frequently and honestly with the public. D. Very few companies feel the need to have public-relations people to communicate with the press. E. Only top-level executives need special instruction on how to deal with the media.

C. In a crisis, the media should be used to communicate frequently and honestly with the public.

______ is the illegal buying or selling of a company's stock by people using confidential company information. A. A whistle-blower B. Stock exploitation C. Insider trading D. Tip abuse E. A Ponzi scheme

C. Insider trading

______ time is a preference for doing one thing at a time. A. Singular B. Unichronic C. Monochronic D. Absolute E. Unitary

C. Monochronic

Which of the following is an example of a decisional role that managers play? A. Figurehead B. Spokesperson C. Resource allocator D. Liaison E. Monitor

C. Resource allocator

Which form of technology was exploding when the notion of a "global village" was first developed? A. Newspapers B. Telephones C. Television D. Cell phones E. The Internet

C. Television

Melissa runs a residential-cleaning service and has noticed that some of her staff are much more efficient than others and can clean a house in about half the average time. She would like to reward these workers with a higher wage by implementing what would be known by Taylor as a(n) A. sliding scale system. B. incentivized wage system. C. differential rate system. D. productivity wage system. E. merit pay system.

C. differential rate system.

On GLOBE dimensions, the U.S. managerial sample scored high on A. power distance and uncertainty avoidance B. in-group collectivism and future orientation C. assertiveness and performance orientation D. institutional collectivism and uncertainty avoidance E. masculinity and humane orientation

C. assertiveness and performance orientation

Scientific and administrative management are part of the ________ viewpoint. A. behavioral B. contingency C. classical D. quantitative E. quality

C. classical

South Korea recently lifted its ban on beef and beef products imported from Canada, one that had originated because of cases of bovine spongiform encephalopathy (BSE) among Canadian cattle. The ban is an example of a(n) A. revenue tariff. B. boycott. C. embargo. D. protective tariff. E. import quota.

C. embargo.

As a sales manager, you would have to decide how much leeway to give your subordinates in giving gifts to prospective clients in foreign countries. This is an example of the challenge of managing for A. your own happiness. B. globalization. C. ethical standards. D. sustainability. E. diversity.

C. ethical standards.

Jill, a native of New Orleans, was living in Berlin and working for a U.S. news magazine. Jill would best be termed a(n) A. countertrader. B. franchisor. C. expatriate. D. outsourcer. E. refugee.

C. expatriate.

Among the recommendations of Mary Parker Follett was that A. motion studies should be made of every job. B. managers should design and control the work process. C. integration should occur in organizations when conflicts arise. D. a competitive environment is most conducive to productivity. E. everyone should understand their roles: managers as order-givers, and employees as order-takers.

C. integration should occur in organizations when conflicts arise.

A U.S. paper mill purchases wood from a Canadian logging company to make wood pulp in its production of paper, so in this case the logging company is a A. customer. B. strategic ally. C. supplier. D. distributor. E. special-interest group.

C. supplier.

Even though the Russian government is inefficient in the way it collects taxes, it is still an example of a(n) A. transformational process. B. environment. C. system. D. output. E. therblig.

C. system.

In seeking competitive advantage, the first law of business is to A. take care of your shareholders. B. take care of your stakeholders. C. take care of the customer. D. take care of the environment. E. take care of your employees.

C. take care of the customer.

A narrow view in which people see things solely through their own perspective is known as A. concentrism. B. polycentrism. C. geocentrism. D. expatriatism. E. parochialism.

E. parochialism.

A revenue tariff is designed to protect domestic products from foreign imports by raising the price of the latter.

FALSE

Which of these is a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal? A. Ethics question B. Ethical behavior C. Moral decision D. Ethical dilemma E. Morality situation

D. Ethical dilemma

________ management means translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process. A. Total quality B. Operations C. Administrative D. Evidence-based E. Scientific

D. Evidence-based

Aaron is a manager at a local live music venue. He is developing a new online system for advance ticket sales. Some of the shows have been so popular that tickets sell out quickly and regular patrons have complained that with a slow Internet connection they have no chance to purchase. In an effort to be fair to all prospective customers, Aaron is using what approach to ethical behavior? A. Utilitarian B. Individual C. Moral-rights D. Justice E. Environmental

D. Justice

______ are in an organization's external task environment. A. Employees B. International forces C. Owners D. Lenders E. Demographic forces

D. Lenders

Who proposed the hierarchy of human needs as a theory of motivation? A. McGregor B. Weber C. Munsterberg D. Maslow E. Mayo

D. Maslow

American companies may be more willing to sue competitors to gain competitive advantage than those in other countries, which is an example of which type of force? A. Special interest B. Economic C. Sociocultural D. Political-legal E. Demographic

D. Political-legal

An optimistic view of workers that envisions them as capable of accepting responsibility and working in a self-directed manner is representative of A. hierarchy of accountability. B. hierarchy of needs. C. Theory X. D. Theory Y. E. self-fulfilling prophecy.

D. Theory Y.

The "holier than thou" effect has been cited as a psychological mechanism that may result in A. a lack of innovation. B. increased training costs. C. decreased diversity. D. cheating. E. poor customer service.

D. cheating.

Despite the appeal of the opportunity, Samantha decided to delay taking her product to foreign markets because she felt that her current personnel did not have enough international experience. She was exhibiting ______ skills. A. comparative B. human C. intangible D. conceptual E. intuitive

D. conceptual

Managers at Montaigne Prefecture Glass needed to take some important steps to get out ahead of the growing competition. Recently, new talent had been hired, the training and development budget had been doubled, and cross-functional teams were added to improve information flow. It appears that Montaigne is attempting to become a ______ organization. A. closed system B. Theory Y C. contingency D. learning E. virtual

D. learning

A good reason for studying theoretical perspectives of management is that it A. provides an understanding of the competitors' strengths. B. eliminates the need for in-depth analysis. C. correctly guides the writing of a mission statement. D. provides clues to the meaning of your managers' decisions. E. acts as an encyclopedia of solutions.

D. provides clues to the meaning of your managers' decisions.

Front-line managers supervise the work of nonmanagerial employees.

T

The term 'functional manager' applies to directors of individual departments.

T

Describe the fundamental ideas underlying the classical viewpoint to management, and give at least one example of a modern practice that has its roots in this view. Compare and contrast its two approaches.

The classical viewpoint is based on the assumption that people are rational. The essence of the classical viewpoint was that work activity was amenable to a rational approach, that through the application of scientific methods, time and motion studies, and job specialization it was possible to boost productivity. The classical viewpoint also led to such innovations as management by objectives and goal setting, as we explain elsewhere. The two major approaches are the scientific management approach and the administrative approach. Scientific management emphasized the scientific study of work methods to improve the productivity of individual workers. Two of its chief proponents were Frederick W. Taylor and the team of Frank and Lillian Gilbreth. Taylor used motion studies and suggested using a differential rate system. The Gilbreths expanded on Taylor's motion studies. Administrative management is concerned with managing the total organization. Among the pioneering theorists were Henri Fayol, who identified the major functions of management, and Max Weber, who advocated five positive bureaucratic features.

What is meant by the term global economy? How will it positively and negatively affect the United States?

The global economy refers to the growing tendency of the economies of the world to interact with one another as one market instead of many national markets. This positively affects the United States by providing additional markets for U.S. products, which will mean domestic growth. In addition, foreign firms are building plants in the United States, revitalizing parts of industrial America. Foreign direct investment makes up 15% of the country's gross domestic product (total value of all goods and services). Companies based overseas provide jobs for approximately 10% of the U.S. workforce. It negatively affects the United States because economic problems in other parts of the world are more likely to affect the U.S. economy. There are risks associated with financially intertwined markets. Another negative effect is the movement, or outsourcing, of formerly well-paying jobs overseas as companies seek cheaper labor costs, particularly in manufacturing.

Effectiveness

The organization's ends, the goals. To be effective means to achieve results, to make the right decisions, and to successfully carry them out so that they achieve the organization's goals.

What is management

The pursuit of organizational goals efficiently and effectively.

Identify at least five of the external stakeholders of organizations that lie in the task environment. Explain why each of these is important to the organization.

The task environment consists of competitors, customers, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media. These are all important to the organization because they are the source of some input the organization needs. For example, customers bring in money when they buy a product, suppliers bring in needed materials, and distributors help to sell products.

Identify and discuss the purpose of the three principal organizations designed to facilitate international trade.

The three organizations are the WTO, the World Bank, and the IMF. The WTO (World Trade Organization) serves as a forum for agreements between nations about international trade, and a means to resolve disputes in that area. The World Bank provides low-interest loans to developing countries for improving their infrastructure, including transportation, education, health, and communications. The IMF (International Monetary Fund) assists in the flow of money between nations, and operates as a last-resort lender that makes short-term loans to countries in financial difficulties.

Why should one study different theoretical perspectives about management? Give at least three reasons.

There are five good reasons for studying theoretical perspectives. The student may give any three of the following: (1) understanding of the present, (2) guide to action, (3) source of new ideas, (4) clues to meaning of your managers' decisions, (5) clues to meaning of outside events.

Why is the contingency viewpoint important?

Why is the contingency viewpoint important? The contingency viewpoint is important because it seems to be the most practical of the viewpoints. It addresses problems on a case-by-case basis and varies the solution accordingly.

International forces

are changes in the economic, political, legal, and technological global system that may affect an organization

legal political forces

are changes in the way politics shape laws and laws shape the opportunities for and threats to an organization

Technological forces

are new developments in methods for transforming resources into goods or services

transformation process

are the organization's capabilities in management, internal processes, and technology that are applied to converting inputs into outputs

customers

are those who pay to use an organizations's goods or services

scalar

classical management rule that states subordinates at every level should follow the chain of command

proactive

committed to yourself but a leading citizen of that community, actively respond to situation

obstructive

fighting against from community

what is Competitive advantage?

the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them

traditional (management pyramid)

top managers- lead the organization long term decisions middle managers-implement long term decisions first line managers short term

Which of the following is a form of trade protectionism? A. A trade bloc B. A countertrade C. A revenue tariff D. An embargo E. Outsourcing

D. An embargo

Fast-food companies including McDonald's have used job specialization, and time and motion studies to increase productivity. This reflects the important contributions of the quantitative viewpoint of management.

FALSE

For established companies, financial institutions are not external stakeholders.

FALSE

For international expansion, joint ventures have a lower level of risk than franchising.

FALSE

Frank and Lillian Gilbreth were chief proponents of administrative management.

FALSE

Human skills become less critical as one's career progresses, and are least important for top managers.

FALSE

In a closed system, an organization's outputs are recycled to become inputs.

FALSE

In recent years, white-collar crime in the United States has become very rare.

FALSE

It is still unclear whether ethical behavior and social responsibility give an organization a competitive advantage.

FALSE

Jaclyn is a manager who keeps a tight rein on her staff since she thinks they would not work without supervision. She doubts their commitment to the company and even to their own development. She is a Theory Y manager.

FALSE

John Hammergren's compensationof $145 million in 2010 as CEO of health care technology firm McKesson is typical for CEOs in North America today.

FALSE

Most of what we know about our native culture we have learned through formal education

FALSE

Motivating employees toward achievement is a focus of the classical viewpoint of management.

FALSE

One of the problems with the classical viewpoint is that its principles are too focused on human needs rather than on organizational ones.

FALSE

One reason for the success of the Tommy Hilfiger clothing brand in the 1990s was maintaining a closed system with respect to young consumers' feedback by conducting research in music clubs.

FALSE

One's experience in management remains very insulated from the company's culture.

FALSE

Only those with an ownership interest in a company are known as stakeholders.

FALSE

Organizations can gain a competitive advantage by matching their competition in terms of quality, responsiveness, and efficiency.

FALSE

Political-legal forces are changes in the economic, political, legal, and technological global system that may affect an organization.

FALSE

Polycentric managers accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.

FALSE

Power distance refers to how loosely or tightly people are socially bonded.

FALSE

Prior to its natural gas pipeline explosion, Pacific Gas and Electric (PG&E) had an incentive system that encouraged crews to find leaks, which led to steep increases in repair costs.

FALSE

Quality control focuses on the performance of workers, urging employees to strive for "zero defects."

FALSE

Rafael sits on the board of directors for Pierson Fabrication, Inc., but he is not among the executive leadership of the organization. In fact, he works for an American carmaker. Therefore Rafael is an external stakeholder for Pierson.

FALSE

Since the 1960s research conducted by Mintzberg, the typical general manager has reduced her work week to the traditional 40 hours.

FALSE

Smart phones, e-mail, and videoconferencing have all but eliminated the need for international business travel.

FALSE

Successful companies have been called "gazelles" because of a characteristic they possess, namely an acute sensitivity to danger in the environment.

FALSE

Tariffs are common today and still growing in number since they have a long history of successfully protecting jobs in this country.

FALSE

Text messages and documents transmitted over a computer network are called cyber-messages.

FALSE

The GLOBE project is a large, ongoing effort to find technological improvements to assist world trade.

FALSE

The Hawthorne studies have been criticized for poor design and a lack of empirical data to support the conclusions, so the findings cannot be applied to modern management.

FALSE

The Internet has made it more difficult for small firms to get started because now everyone must compete on a global scale.

FALSE

The Josephson Institute suggests a TEAM (Teach, Enforce, Advocate, Model) approach for parents to encourage good financial habits in children.

FALSE

The National Rifle Association is an example of a government regulator.

FALSE

The United States exports more to China than to any other nation

FALSE

The approach to ethical behavior that is guided by respect for fairness and equity is the integrity approach.

FALSE

The behavioral science approach to management has its roots in techniques created for American and British military personnel and equipment in World War II.

FALSE

The central assumption in classical management is that people are self-interested.

FALSE

The classical viewpoint emphasized ways to manage work more independently.

FALSE

The contemporary perspective of management includes three viewpoints: systems, behavioral, and quantitative.

FALSE

The contingency viewpoint began to develop when managers discovered that a variety of different mathematical models can be applied for problem solving and decision making.

FALSE

The decline in revenue in the newspaper industry is due to a sharp drop in the number of people reading American newspapers.

FALSE

The economic integration of the European Union can best be considered part of the economic forces.

FALSE

The first stage of personal moral development is known as the conventional level.

FALSE

The global economy refers to the heightened economic regulation of many national markets as they protect themselves from one another.

FALSE

The majority of American adults are likely to purchase from companies with ethical business practices only if their prices are not higher.

FALSE

The management theory that draws from the disciplines of psychology, sociology, anthropology, and economics is the management science approach.

FALSE

The mass media is part of an organization's general environment.

FALSE

The religion with the most followers worldwide is Hinduism.

FALSE

The term global village refers to the tendency for various cultural groups to cluster in small pods throughout the world.

FALSE

The total ability of a product or service to meet customer needs is known as functionality.

FALSE

The traditional organizational model is often represented by a funnel shape.

FALSE

The two branches of the classical viewpoint of management are rational and bureaucratic.

FALSE

Trade protectionism is a term for government measures that promote and preserve free trade globally.

FALSE

Tucker recently attended a dinner for the new CEO. He came away feeling very excited and anxious to do his part to help the company achieve its goals. In this instance, the CEO was performing the management function known as planning.

FALSE

Two of the reasons companies expand internationally are to take advantage of the availability of suppliers, or to charge tariffs or impose import quotas

FALSE

Two types of entrepreneurs include the extrapreneur and the intrapreneur.

FALSE

Unless you work outside of the United States, international management is likely to have little relevance during your career.

FALSE

Using in-name-only offshore headquarters to minimize U.S. tax burdens is an example of corporate social responsibility.

FALSE

Viral staffing is the term used to describe working from home or remote locations using a variety of information technologies.

FALSE

When Barnett, a college administrator, is determining which of several degree programs his campus will offer, he is involved in the management function of controlling.

FALSE

When DuPont agrees to let a Brazilian company make its product Teflon, the nonstick coating, in its local market for a fee it is called franchising.

FALSE

When he or she does not speak the local language, a manager should rely on gestures and symbols since their consistency of meaning provides a form of universal communication throughout the world.

FALSE

Jobs that requires face-to-face or physical contact, or those that require recognition of complex patterns, are unlikely to be offshored.

TRUE

Knowing the cultural tendencies of foreign business partners and competitors can give you a strategic competitive advantage.

TRUE

Management includes integrating the work of people through planning, organizing, leading, and controlling the organization's resources

TRUE

Managers who take the view that native managers in foreign offices best understand native personnel and practices, and so the home office should leave them alone, are called polycentric managers

TRUE

Max Weber felt that impersonality was a positive attribute of an organization that would lead to better performance.

TRUE

Mergers have surged in the past 20 years because many industries are not suited to midsize or small companies

TRUE

Mingjin is a branch manager in Albuquerque who reports to the CEO in Denver and to whom three other managers at her facility report, so she would be termed a middle manager.

TRUE

Netflix's business suffered when it failed to use an open system in its decision to introduce a large price increase while simultaneously splitting its DVD mail service from its streaming one.

TRUE

One advantage of small companies over large ones is the former's ability to change direction faster.

TRUE

One of the payoffs of studying management is an improved understanding of how to deal with organizations as a customer

TRUE

One of the rewards of being a manager is that you can build a catalog of successful products or services.

TRUE

Peter was having a hard time concentrating on work on Friday afternoon. He had friends visiting for the weekend and he kept checking his phone and his Facebook page to solidify his plans. He certainly wasn't working as hard as he could have been, something that scientific management theorist Frederick Taylor would have called "soldiering."

TRUE

Researcher Robert Katz determined that through duration and experience managers acquire technical, conceptual, and human skills.

TRUE

__________ was concerned with managing the total organization and was pioneered by Fayol and Weber. A. Administrative management B. Operations management C. Management science D. Scientific management E. Contemporary management

A. Administrative management

Staying ahead of competitors in which of the following is key to developing a competitive advantage?

Innovation

How is management both an art and a science?

Intuition, judgment, and experience are part of the successful mix of effective management. These factors are more "art" than science, and may exist in a manager without actual training in management. However, management also uses the scientific method; it observes and gathers facts, makes decisions based on the facts, makes predictions of future events, and tests the prediction under systematic conditions. These are parts of the "science" of management.

List Mintzberg's findings about the nature of managerial work.

A manager relies more on verbal than on written communication. A manager works long hours at an intense pace. A manager's work is characterized by fragmentation, brevity, and variety.

Supplier

A person or an organization that provides supplies- that is, raw materials, services, equipment, labor, or energy - to other organizations

According to Mintzberg, the three broad types of managerial roles include interpersonal,analytical, and critical.

FALSE

Milton Friedman would have agreed with which of the following statements about social responsibility? A. A company will produce higher quality products when it practices social responsibility. B. A company will increase its sales when it practices social responsibility. C. A company will be able to create better jobs when it practices social responsibility. D. A company will become distracted from its task to maximize profits when it practices social responsibility. E. A company will provide improved value when it practices social responsibility.

D. A company will become distracted from its task to maximize profits when it practices social responsibility.

"Mindfulness" is characterized by which of the following attributes? A. Acting from a single perspective. B. Automatic behavior. C. Belief in one right way. D. Active engagement. E. Protecting traditional ideas.

D. Active engagement.

Ethnocentrism among international managers has been linked to A. higher performance by foreign subsidiaries. B. lower turnover among employees in foreign subsidiaries. C. fewer lawsuits over personnel policies within foreign subsidiaries. D. recruitment difficulties for foreign subsidiaries. E. poor-quality products from foreign subsidiaries.

D. recruitment difficulties for foreign subsidiaries.

A duty imposed on imported goods designed simply to raise money for the government is known as a(n) A. protective tariff. B. income quota. C. income embargo. D. revenue tariff. E. import quota.

D. revenue tariff.

Chemka is speaking at a press conference to discuss the company's plans to close three underperforming branches after several years and several rounds of changes in trying to keep them open. Chemka is performing the _______ role. A. disseminator B. monitor C. liaison D. spokesperson E. figurehead

D. spokesperson

The company's culture most directly affects A. the number of competitors a firm has. B. the number of products a company makes. C. the amount charged for the firm's products or services. D. the manager's happiness. E. the education of the workforce.

D. the manager's happiness.

To create a learning organization, managers must perform three key functions or roles: build a commitment to learning, work to generate ideas with impact, and A. minimize stress with positive talk. B. be fair to employees. C. stir conflict before implementing new ideas. D. work to generalize ideas with impact. E. work to create chaos to generate new ideas.

D. work to generalize ideas with impact.

Administrative management is most concerned with the jobs of individuals

FALSE

Informational roles

managers receive and communicate information monitor, disseminator, spokesperson

Decisional roles

managers use information to make decisions to solve problems or take advantage of opportunities entrepreneur, disturbance handler, resource allocator, negotiator

When considering eliminating company policies that are profitable but may damage the environment, you are

managing for ethical standards.

If you enjoy mentoring and helping others grow, management is a great job.

TRUE

In China, it is permissible for office colleagues to inquire about the size of your apartment and your salary.

TRUE

In some cases, the IRS financially rewards whistle-blowers.

TRUE

Studying management can be helpful even before you become a manager. List at least three of the rewards of studying management.

(1) You will understand how to deal with organizations from the outside. It helps to understand how organizations work and how the people in them make decisions. (2) You will understand how to relate to your supervisors. Since most of us work in organizations and most of us have bosses, studying management will enable you to understand the pressures managers deal with and how they will best respond to you. (3) You will understand how to interact with co-workers. Studying management can give you the understanding of teams and teamwork, cultural differences, conflict and stress, and negotiation and communication skills that will help you get along with fellow employees. (4) You will understand how to manage yourself in the workplace. Management courses give you the opportunity to realize insights about yourself—your personality, emotions, values, perceptions, needs, and goals. We help you build your skills in areas such as self-management, listening, handling change, managing stress, avoiding groupthink, and coping with organizational politics.

Which of the following is one of the four principal functions of management, also known as the management process? A. Organizing B. Scheduling C. Motivating D. Executing E. Monitoring

A. Organizing

Among the negative effects of global interdependency are outsourcing and higher-priced goods.

FALSE

What is the difference between a stakeholder and a stockholder? What type of stakeholder is a shareholder?

A stakeholder is a broad term for the people whose interests are affected by an organization's activities. It can be applied to both internal and external groups. For example, employees, owners, and the board of directors represent the internal stakeholders of an organization. Therefore, stockholders are just one of these internal stakeholders (owners)—those who have a financial interest in the organization. External stakeholders include customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media.

What is a trading bloc? Identify four major trading blocs and the area of the world in which the member countries are located.

A trading bloc is a group of nations in a particular geographic area that agree to join together to remove trade barriers with one another. The major trading blocs are: NAFTA: United States, Canada, Mexico EU: Europe ASEAN: Southeast Asia APEC: countries of the Pacific Rim, including the United States, Canada, and China Mercosur: Latin America CAFTA: Central America

Jocelyn's staff is upset because they normally receive their paychecks or direct deposits on Fridays and occasionally on Thursdays if there is a holiday. Tomorrow is Friday, July 4, and the bank did not process payments today as expected, so Jocelyn is on the phone trying to get the situation resolved as part of which managerial role? A. Disturbance handler B. Monitor C. Spokesperson D. Negotiator E. Resource allocator

A. Disturbance handler

Matthew, the president of a diesel engine research firm, was welcoming potential partners from a large automobile corporation in Europe. Before handing them off to his technical counterpart, he gave them an extensive tour of his laboratory and field-testing operations as part of which managerial role? A. Figurehead B. Analytical C. Monitor D. Visionary E. Disseminator

A. Figurehead

Which of the following is a cultural dimension in the GLOBE project? A. Humane orientation B. Power seeking C. Ethnic egalitarianism D. Failure avoidance E. Group performance

A. Humane orientation

Which of the following is believed to have contributed to the Pacific Gas and Electric natural gas pipeline explosion in 2010? A. Inspection crew incentives that encouraged false reporting. B. Undetected earthquake damage. C. Illegal field practices by construction crews. D. Lack of a formal code of ethics. E. Sabotage by a competitor.

A. Inspection crew incentives that encouraged false reporting.

______ is a trading status that describes a condition in which a country grants other countries favorable trading treatment such as a reduction of import duties. A. Most favored nation B. Liberty status C. Protected trade D. Mercosur E. Free trading status

A. Most favored nation

Over 682,000 U.S. workers have lost their jobs because they were moved south of the border as a result of A. NAFTA. B. WTO. C. Mercosur. D. IMF. E. EU.

A. NAFTA.

Which of the following sparked renewed interest in corporate governance? A. Scandals among CEOs who were eventually convicted of fraud. B. Advances in technology that have dramatically improved communication. C. Rising oil prices as well as higher prices for many other natural resources. D. High-profile businesspeople creating charitable foundations. E. An increasingly diverse workforce.

A. Scandals among CEOs who were eventually convicted of fraud.

______ emphasized the scientific study of work methods to improve productivity of individual workers. A. Scientific management B. Quantitative science C. TQM D. Management science E. Administrative management

A. Scientific management

The American epidemic of obesity among U.S. youth is an example of which external force? A. Sociocultural B. Special interest C. Demographic D. Political-legal E. Media

A. Sociocultural

________ forces are influences and trends originating in human relationships and values that may affect an organization. A. Sociocultural B. Special-interest C. Demographic D. Political-legal E. Media

A. Sociocultural

Which of the following is a discipline that is part of behavioral science? A. Sociology B. Physics C. Computer science D. Biology E. Law

A. Sociology

______ skills consist of the job-specific knowledge needed to perform well in a specialized field. A. Technical B. Action C. Conceptual D. Physical E. Human

A. Technical

Which of the following is an event that helped spur the inception of the global economy? A. The opening of Asian markets to foreign investors. B. Improved race relations worldwide. C. The industrial revolution. D. The invention of the Internet. E. The increasing regulation of economies across the world.

A. The opening of Asian markets to foreign investors.

Which of the following is a cultural dimension measured in the GLOBE project? A. Uncertainty avoidance B. Hierarchical structure C. Ethnic egalitarianism D. Profit seeking E. Ethical orientation

A. Uncertainty avoidance

The ______ is controversial because it has been accused of financing projects, which harm the environment and of helping countries that permit sweatshops or suppress religious freedom. A. World Bank B. WTO C. ASEAN D. GATT E. EU

A. World Bank

Which of the following organizations succeeded GATT? A. World Trade Organization B. World Bank C. EU D. International Monetary Fund E. NAFTA

A. World Trade Organization

According to Deming, quality stemmed from a steady focus on the organization's mission and A. a reduction in production variation. B. Theory Y management. C. operations research. D. the Hawthorne effect. E. complexity theory.

A. a reduction in production variation.

A state government offered a German solar research company a tax break if it located its U.S. headquarters in that state because of the new jobs that would be created. Unfortunately, problems occurred, resulting in little company growth and few new jobs. As a result, the state instituted a ______ by rescinding the tax breaks. A. clawback B. reallocation C. tax amendment D. reformation E. levy turnabout

A. clawback

An ethical _________ represents employee's perceptions about the extent to which work environments support ethical behavior. A. climate B. atmosphere C. code D. structure E. hierarchy

A. climate

Both the classical management view and the management science perspective consider an organization to be a(n) ________; as a simplification for analysis this may work, but in reality it would open up the organization to spectacular failure. A. closed system B. neutral system C. porous system D. subsystem E. isolated system

A. closed system

The ability of an organization to outperform others by producing goods or services more effectively than its competitors is called its A. competitive advantage. B. quality. C. efficiency. D. innovation. E. effectiveness.

A. competitive advantage.

The ________ viewpoint emphasizes that a manager's actions should vary according to the situation. A. contingency B. quality-management C. flexible-management D. systems E. scenario

A. contingency

Inflation is an example of ______ forces in an organization's general environment. A. economic B. technological C. political-legal D. sociocultural E. demographic

A. economic

Tracy, a manager at a busy warehouse, was slow to hire new employees, preferring instead to encourage improvements from his current staff. He carefully watched his other costs too, performing equipment maintenance on a regular basis to improve its lifespan. Tracy would best be described as a(n) _____ manager. A. efficient B. ethical C. innovative D. effective E. micro

A. efficient

To inspire innovation, Jinyuan encourages his employees to devote one afternoon a month to work on pet projects, just to spend time in the lab experimenting and thinking freely. He is acting in the ______ role. A. entrepreneur B. disturbance handler C. resource allocator D. negotiator E. liaison

A. entrepreneur

Classical, behavioral, and quantitative viewpoints about management are collectively referred to as the ________ perspective. A. historical B. scientific C. operations D. contemporary E. systems

A. historical

The belief that you control your own destiny is called A. internal locus of control. B. entrepreneurship. C. intrapreneurship. D. power centering. E. manifest destiny.

A. internal locus of control.

Tonya is a structural engineer who works for a large international firm. She designs the concrete and steel structures that support even the largest and most complex buildings. Because of her high level of technical skills, Tonya is best referred to as a A. knowledge worker. B. blue-collar worker. C. self-managed worker. D. first-line worker. E. first-line manager.

A. knowledge worker.

Eli Lilly has agreed to let a South African company manufacture several of Eli Lilly's diabetes drugs and pay Eli Lilly a fee to distribute the drugs with a different brand name in South Africa. Eli Lilly is engaging in A. licensing. B. franchising. C. countertrading. D. a strategic alliance. E. a greenfield venture.

A. licensing.

The International Red Cross is an example of a A. multinational organization. B. multigovernment organization. C. international social corporation. D. multinational corporation. E. global philanthropy.

A. multinational organization.

When a company uses a supplier outside itself to provide goods and services, it is A. outsourcing. B. countertrading. C. franchising. D. licensing. E. privatizing.

A. outsourcing.

Statistical sampling to locate errors by testing just some of the items in a particular production run is a ______ technique. A. quality control B. continuous improvement C. reengineering D. quality assurance E. total quality management

A. quality control

A manager's duty to take actions that will benefit the interests of society as well as of the organization is known as A. social responsibility. B. philanthropy. C. ethics. D. moral rights. E. the society motive.

A. social responsibility.

After the disastrous oil spill in the gulf, many consumers decided to avoid BP products, many even joining a popular "Boycott BP" Facebook page. Stuart runs an independent BP gas station in Louisiana and his business suffered from this consumer response. In this instance, boycotters would be considered a ______, part of the gas station's ______ environment. A. special-interest group; task B. local community; task C. demographic force; general D. sociocultural force; task E. local community; general

A. special-interest group; task

The essence of the classical viewpoint is that A. resources are limited. B. a rational approach can be used to boost productivity. C. people are self-interested. D. people will take on responsibility if it is offered to them. E. workers behave how you expect them to.

B. a rational approach can be used to boost productivity.

Describe Carroll's global corporate social responsibility pyramid.

According to University of Georgia business scholar Archie B. Carroll, corporate social responsibility rests at the top of a pyramid of a corporation's obligations, right up there with economic, legal, and ethical obligations. That is, while some people might hold that a company's first duty is to make a profit, Carroll suggests the responsibilities of an organization in the global economy should take the following priorities: 1. Be a good global corporate citizen, as defined by the host country's expectations. (Top of pyramid, philanthropic responsibility) 2. Be ethical in its practices, taking host-country and global standards into consideration. (Ethical responsibility) 3. Obey the law of host countries as well as international law. (Legal responsibility) 4. Make a profit consistent with expectations for international business. (Pyramid base, economic responsibility)

Which of the following forms the base of Carroll's global corporate social responsibility pyramid? A. Philanthropic responsibility B. Economic responsibility C. Ethical responsibility D. Moral responsibility E. Legal responsibility

B. Economic responsibility

__________ managers believe that their native country, culture, language, and behavior are superior to all others. A. Expatriate B. Ethnocentric C. Geocentric D. Polycentric E. Global

B. Ethnocentric

The idea that the work process should be under the control of workers with the relevant knowledge, rather than that of managers, who should act as facilitators, was developed by A. Lillian Gilbreth. B. Mary Parker Follet. C. Max Weber. D. Hugo Munsterberg. E. Elton Mayo.

B. Mary Parker Follet.

Which of the following statements about a code of ethics is most true? A. A code of ethics is rarely a written document but instead an informal understanding between people who work for a particular organization. B. Most codes of ethics offer guidance on how to treat stakeholders. C. The purpose of a code of ethics is to keep top management out of jail. D. Codes of ethics typically prohibit bribes unless it is the accepted way of doing business in a foreign country. E. Workforce diversity is not covered in a code of ethics; instead it is usually covered in a separate diversity code.

B. Most codes of ethics offer guidance on how to treat stakeholders.

The United Way and Nature Conservancy are examples of which type of organization? A. For-profit B. Nonprofit C. Administrative D. Mutual-benefit E. Aid-based

B. Nonprofit

Which of the following countries is a member of Mercosur? A. China B. Paraguay C. Greece D. Panama E. Mexico

B. Paraguay

Only about a fifth of American managers reach which level of personal moral development? A. Internalized B. Postconventional C. Expectational D. Enlightened E. Cooperative

B. Postconventional

Which of the following is the most likely reason for the decline in fortunes of American newspapers, and their inability to exploit their competitive advantage? A. A poorer standard for news-gathering. B. Relying too heavily on advertising, rather than customer subscriptions, for revenue. C. Decline in newspaper readership over the last 70 years. D. Preference of customers for getting news in a nonverbal format. E. An increase in salaries and material costs within the industry.

B. Relying too heavily on advertising, rather than customer subscriptions, for revenue.

Which of the following is not a component of TQM? A. Use accurate standards to identify and eliminate problems. B. Urge employees to strive for "zero defects." C. Make continuous improvement a priority. D. Get every employee involved. E. Listen to and learn from customers and employees.

B. Urge employees to strive for "zero defects."

The __________ is designed to monitor and enforce trade agreements. A. World Bank B. WTO C. IMF D. GATT E. EU

B. WTO

Jack is working overseas, and has been asked by a superior to present a government official with a cash payment in order to secure a contract. This makes Jack uncomfortable since he does not feel it is right, yet he worries about upsetting his boss. Jack is facing A. political-legal trends. B. an ethical dilemma. C. a moral-rights approach by his boss. D. an idealistic situation. E. sociocultural trends.

B. an ethical dilemma.

As part of his overall stock portfolio, Jason bought a few shares of Facebook. In this context, he would best be described as ______ of Facebook. A. being part of the task environment B. an internal stakeholder C. an economic force D. being part of the general environment E. a member of the board of directors

B. an internal stakeholder

Petra is a new manager for a household products company, after getting a promotion from an administrative job that she found boring. But now she frequently experiences ______, like when she had to explain the new product her team is developing to the CEO and several board members. As psychologist Csikzentmihalyi predicts, her ideal state would be an emotional zone between that and boredom. A. overload B. anxiety C. immodesty D. fear E. pressure

B. anxiety

Many technology companies are hesitant to involve customers in the development of their products, since they are trying to protect their latest products and ideas from competitors' attempts to replicate them. This typically results in a fairly ______ system. A. responsive B. closed C. distinctive D. stable E. intelligent

B. closed

Behavioral science research suggests that ________ doesn't necessarily promote excellence, and actually can make people hostile. A. the Hawthorne effect B. competition C. soldiering D. industrial espionage E. integration

B. competition

The ability to think analytically is associated with ______ skills. A. comprehension B. conceptual C. human D. abstract E. intuitive

B. conceptual

Import quotas are designed to prevent A. embargoes. B. dumping. C. exports. D. tariffs. E. outsourcing.

B. dumping.

According to management recruiters, ______ demonstrates independence, resourcefulness, and entrepreneurship to potential employers. A. importing goods from another country B. foreign work experience C. holding school leadership positions D. speaking a second language E. studying the fine arts

B. foreign work experience

Pizza Hut provides the use of its name plus operating know-how to companies in Costa Rica in return for a fee plus a percentage of profits. Pizza Hut is A. exporting. B. franchising. C. countertrading. D. involved in a strategic alliance. E. involved in a greenfield venture.

B. franchising.

The trend of the world economy toward becoming a more interdependent system is called A. international cooperation. B. globalization. C. world partnership. D. economic defragmentation. E. international unification.

B. globalization.

Research has shown that all of the following are characteristics of an entrepreneur except which? A. self-confident B. highly experienced C. belief in personal control of destiny D. high energy level and action orientation E. high tolerance for ambiguity

B. highly experienced

Gary Hamel believes that identifying and challenging debilitating core beliefs that people have about an organization can be helpful in improving management A. rewards. B. innovation. C. restructuring. D. planning. E. motivation.

B. innovation.

The development of Google News by Google employees experimenting with ways to facilitate browsing news from several sources is an example of A. business intelligence. B. intrapreneurship. C. business invention. D. corporate design. E. entrepreneurship.

B. intrapreneurship.

In a(n) ______, shared meanings are primarily derived from written and spoken words rather than situational cues. A. core values system B. low-context culture C. expatriate system D. societal value system E. high-context culture

B. low-context culture

The general environment of an organization is also known as its A. forcefield. B. macroenvironment. C. global sphere of influence. D. task environment. E. control climate.

B. macroenvironment.

Derrick is a clinic director running a downtown Chicago facility for a large nonprofit health organization. He receives most of his strategic direction from the organization and supervises several department managers in his workplace. Derrick is a A. first-line manager. B. middle manager. C. tactical manager. D. functional manager. E. coordination manager.

B. middle manager.

The _________ effect states that a manager's influence on the organization has implications far beyond the results that can be achieved by one person acting alone. A. proliferation B. multiplier C. managerial D. halo E. additive

B. multiplier

After her divorce, Jillian had to go back to work. While she interviewed to return to her previous accounting profession, she began a custom wedding invitation business. Jillian would best be described as a(n) A. motivated entrepreneur. B. necessity entrepreneur. C. opportunity entrepreneur. D. performance entrepreneur. E. chance entrepreneur.

B. necessity entrepreneur.

Management theorist Peter Drucker compared the workplace of the future to a A. pyramid. B. symphony orchestra. C. flattened oval. D. chess game. E. warship.

B. symphony orchestra.

Marie recently became a managing partner at her law firm. Though her job has changed, she still needs to have the necessary ______ skills to advise and review the contracts of the real estate attorneys that she manages. A. performance B. technical C. conceptual D. human E. physical

B. technical

A senior vice president is an example of what level of manager? A. first-line B. top C. leadership D. middle E. merit

B. top

Polo Ralph Lauren, Tommy Hilfiger, and Wrangler manufacture jeans at plants in Mexico, thanks to the inexpensive labor there and various tax breaks from the Mexican government. These companies are A. repatriating. B. using maquiladoras. C. countertrading. D. franchising. E. licensing.

B. using maquiladoras.

Explain the three primary barriers to free trade that can exist, and why a country might erect such barriers. Give an example of each.

Barriers include protective tariffs, import quotas, and embargoes. Countries often use such barriers as a form of trade protectionism, the use of government regulations to limit the import of goods and services, to protect their domestic industries against foreign competition. The justification they often use is that this saves jobs. Tariffs are duties or taxes levied on imports. Tariffs may be used to raise money for the government (revenue tariffs) or to protect domestic production (protective tariffs). An example of the second type is the U.S. tariff on Chinese tires. Import quotas are limits on the numbers of a product that can be imported. These also protect domestic industries. The United States has also used this technique to protect domestic steel production against Japanese competition. Embargoes are complete bans on import or export of particular products. This may be done to protect domestic production or for reasons of foreign policy or protection of technological secrets. For example, the United States has banned the import of Cuban cigars and sugar for political reasons.

Omar is a human resources manager for a large landscaping and exterior construction company called Northwest Patios. A local news station has just done a story on several dissatisfied customers and their complaints of shoddy work. Omar has had two other media outlets contact him this morning too. Based on research on the effects of such publicity, Omar should expect that A. job applications will increase, though rates of candidates accepting job offers will decline. B. employee retention will improve. C. both rates of candidates accepting job offers and employee retention will slide. D. job applications will decrease but employee retention will stay the same. E. no substantive changes in applications, offer acceptance or retention will occur.

C. both rates of candidates accepting job offers and employee retention will slide.

Personal and emotional justifications for ________ include its usefulness as a shortcut and it being a way to redress perceived unfairness. A. a utilitarian approach B. deceptive advertising C. cheating D. whistle-blowing E. a lack of corporate governance

C. cheating

Over her years as a manager, Rose has had a very diverse group of employees; some were very interested in the financial rewards the company offered while others really would prefer extra time off or even to be recognized at the monthly department meetings. Rose should consider the ______ viewpoint of management in this case. A. behavioral B. systems C. contingency D. variance management E. classical

C. contingency

Kelly runs a growing business in Birmingham and wants to do more than lead a successful and law-abiding company. She intends to make a difference in her community by helping with issues like poverty and high unemployment. Kelly believes in A. corporate paternal accountability. B. the fair skies concept. C. corporate social responsibility. D. the corporate protection concept. E. corporate welfare.

C. corporate social responsibility.

Angelina is a shift supervisor for a successful supermarket chain, directing the work of as many as eight other cashiers. She is a(n) A. directional manager. B. middle manager. C. first-line manager. D. general manager. E. area manager.

C. first-line manager.

Marcus works on an assembly line for a U.S. automobile manufacturer. He would be considered a(n) ______ of this system. A. participant B. feedback mechanism C. input D. transformation process E. output

C. input

China does not allow foreign car manufacturers to sell vehicles independently in its country but instead requires them to partner with a Chinese company. This type of partnership is known as a A. franchise agreement. B. countertrade. C. joint venture. D. maquiladora. E. greenfield venture.

C. joint venture.

A general manager at a department store is giving an important presentation to several departments to engage the whole staff in a new customer retention effort beginning this month. This is an example of A. planning. B. organizing. C. leading. D. controlling. E. marketing.

C. leading.

When a company allows a foreign firm to pay it a fee to make or distribute the first company's product or service it is called A. outsourcing. B. franchising. C. licensing. D. countertrading. E. a joint venture.

C. licensing.

One way to think of ______ is "the art of getting things done through people." A. supervision B. motivation C. management D. leadership E. strategy

C. management

The tools of ______ are useful for UPS and FedEx in deciding how many employees and aircraft should be scheduled during the month of December. A. scientific management B. soldiering C. management science D. the Hawthorne studies E. efficiency management

C. management science

Matt has developed a mathematical model for the film distribution company that employs him. The model will help in determining release dates and the desirable number of screens for new movies. This model is an application of A. scientific management. B. behavioral science. C. management science. D. contingency management. E. administrative management.

C. management science.

Managers who implement the policies and plans determined at the highest levels and coordinate the activities of lowest-level managers are called A. executional managers. B. first-line managers. C. middle managers. D. functional managers. E. general managers.

C. middle managers.

Setting goals and deciding how to achieve them is called A. controlling. B. managing. C. planning. D. organizing. E. leading.

C. planning.

Eliza is a new manager, and she frequently feels it necessary to threaten her employees with a variety of punishments in order to get them to follow the rules. The level of personal moral development at which Eliza is operating is the ______ level according to Kohlberg. A. conventional B. unconventional C. preconventional D. postconventional E. reconventional

C. preconventional

The group important in setting the organization's overall strategic goals and for approving major decisions and salaries of top management is known as A. employees. B. stockholders. C. the board of directors. D. investors. E. intrapreneurs.

C. the board of directors.

The primary measure of success of a nonprofit organization is typically A. the total revenue. B. ROI. C. the effectiveness of the services delivered. D. the market share. E. the number of services available.

C. the effectiveness of the services delivered.

Customers are likely to put up with poor-quality products only if your organization is A. underperforming in innovation. B. using computerized customer service. C. the only one of its kind. D. in a very competitive industry. E. lacking strong environmental policies.

C. the only one of its kind.

The earliest forms of communication, the hallmark of great civilizations, were based on A. personal relationships. B. technology. C. transportation. D. warfare. E. agriculture.

C. transportation.

In considering a large-scale layoff, a manager performs a cost-benefit analysis and determines that profits will be greatest if she proceeds. She is using the ______ approach to guide her decision regarding an ethical dilemma. A. individual B. responsibility C. utilitarian D. moral-rights E. justice

C. utilitarian

Skoda Auto, originally a Czech company and one that still manufactures there as well as in other international locations, is one of the largest automakers in Central Europe. In 2000, its acquisition by Germany's Volkswagen Group was complete, and it is now one of four brands for that company. Skoda is now a ______ of Volkswagen. A. maquiladora B. strategically C. wholly owned subsidiary D. greenfield venture E. licensee

C. wholly owned subsidiary

The defining difference between an entrepreneur and an intrapreneur is that the latter A. is the person responsible for funding the former with a startup investment. B. is working on multiple opportunities simultaneously. C. works within an existing organization, using its resources to exploit an opportunity. D. usually runs a small business. E. works in a team setting to develop an idea to fruition.

C. works within an existing organization, using its resources to exploit an opportunity.

What is competitive advantage? Explain the importance of each of the four areas in which an organization must stay ahead of its competitors.

Competitive advantage is the ability of an organization to produce goods or services more effectively than competitors do, thus outperforming them. This means an organization must stay ahead in four areas: customer responsiveness, innovation, quality, and efficiency. Being responsive to customers. The first law of business is: Take care of the customer. Without customers—buyers, clients, consumers, shoppers, users, patrons, guests, investors, or whatever they're called—sooner or later there will be no organization. Innovation is finding ways to deliver new or better goods or services. Quality. If your organization is the only one of its kind, customers may put up with products or services that are less than stellar. However, if you are not a unique organization, which is more likely, customers will begin to buy from the company with better quality for the same price. Efficiency. In today's organizations, the emphasis is on efficiency: Companies strive to produce goods or services as quickly as possible using as few employees (and raw materials) as possible.

Which of the following approaches is characteristic of a manager using the contingency viewpoint? A. Purchasing new technology to improve efficiency. B. Simplifying the steps of the work process. C. Using motivational techniques to boost worker productivity. D. Assessing the characteristics of particular situation before deciding what to do. E. Performing a motion study.

D. Assessing the characteristics of particular situation before deciding what to do.

Which of the following was a positive feature of bureaucracy, according to Max Weber? A. Generalists in the workplace. B. A flat organization with little hierarchy of authority. C. Hiring and promotion based on social status. D. Clear division of labor. E. Flexible rules and procedures.

D. Clear division of labor.

Aziz immediately halted production at his facility after seeing a report indicating the last batch had a high level of product defects, and restarted work only when the problem was discovered and fixed. Aziz is engaged in which management function? A. Repairing B. Organizing C. Monitoring D. Controlling E. Executing

D. Controlling

Which of the following is not a part of Frederick Taylors's work in scientific management? A. Elimination of soldiering B. Motion studies C. Differential rate system D. Hierarchy of human needs E. Raising productivity

D. Hierarchy of human needs

Which of the following is one of the phases in the development of the behavioral viewpoint? A. Human resource management B. Operations management C. Operations research D. Human relations movement E. Administrative management

D. Human relations movement

John recently received his CPA license and plans to run a small tax consulting business, so he just put up a website. What advantage does his business have over larger competitors? A. It has greater access to capital. B. It has superior distribution. C. It has more access to young talent. D. It can change direction quicker. E. It has well-defined bureaucratic systems.

D. It can change direction quicker.

________ are stakeholders of organizations because they rely on the tax base companies help create, as well as their employee payrolls, to thrive. A. Special-interest groups B. Government regulators C. Mass media D. Local communities E. Financial institutions

D. Local communities

Which of the following is a negative effect for the United States of global economic interdependency? A. Decreased economic activity B. Poorer quality goods C. Lower standards of living D. Loss of well-paying jobs E. More expensive products

D. Loss of well-paying jobs

Which of the following is one of the seven primary challenges facing managers today? A. Maintaining good records of what worked in the past. B. Dealing with a stubbornly static and immobile environment. C. Staying ahead of competitors through corporate espionage. D. Managing to achieve one's own happiness and life goals. E. Collaborating with competitors.

D. Managing to achieve one's own happiness and life goals.

Which of the following is not one of the principles proposed by Fredrick Taylor to eliminate soldiering? A. Give workers the training and incentives to do the task properly. B. Carefully select workers with the right abilities for the task. C. Study each part of the task scientifically. D. Reward employees equally and consistently. E. Use scientific principles to plan the work methods.

D. Reward employees equally and consistently.

The term learning organization was coined by A. Shewart. B. Deming. C. Juran. D. Senge. E. Mayo.

D. Senge.

Which of the following is an example of an internal stakeholder of an organization? A. A local news station. B. The distributor for one of the finished products. C. A newly formed union. D. The largest stockholder of the company. E. The suppliers of raw materials for one of the products.

D. The largest stockholder of the company.

A group of people who work together to achieve some specific purpose is/are called A. managers. B. a collaboration. C. a team. D. an organization. E. a community.

D. an organization

The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as A. corporate social responsibility. B. the ethical climate. C. philanthropy. D. corporate governance. E. the utilitarian approach.

D. corporate governance.

David was feeling very anxious, confused, and out of place since he arrived for his new job in Taipei, Taiwan. It seemed like just about everything was different from what he was used to. David was experiencing A. overseas difficulties. B. sociological struggles. C. complexity issues. D. culture shock. E. adjustment pains.

D. culture shock.

The most significant flaw in the classical viewpoint is that it A. overemphasizes mathematical techniques. B. is impractical in the workplace. C. does not address productivity. D. discounts the importance of human needs. E. does not account for irrational behavior.

D. discounts the importance of human needs.

Jeremy Stoppelman and Russel Simmons, founders of Yelp, a website with reviews of businesses, created a new type of business that did not exist before their efforts. They would best be described as A. business developers. B. inventors. C. sole proprietors. D. entrepreneurs. E. intrapreneurs.

D. entrepreneurs.

A company that is producing goods domestically and sells them outside the country is involved in A. countertrading. B. outsourcing. C. importing. D. exporting. E. franchising.

D. exporting.

How much pride and loyalty people should have for their family or organization is a cultural dimension in the GLOBE project known as A. institutional collectivism. B. power distance. C. social egalitarianism. D. in-group collectivism. E. human egalitarianism.

D. in-group collectivism.

The individual approach is guided by what will result in the individual's ________ best interests, which ultimately are in everyone's self-interest. A. shared B. immediate C. credible D. long-term E. observable

D. long-term

The pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization's resources is called A. employment. B. career planning. C. competitive advantage. D. management. E. strategic planning.

D. management

In a ______ role, you should be constantly alert for useful information, whether gathered from newspaper stories about the competition or discovered in conversations with subordinates. A. figurehead B. negotiator C. spokesperson D. monitor E. disseminator

D. monitor

Oxfam International is a nonprofit that works in 90 countries on issues of poverty advocacy and eradication, as well as disaster relief. Oxfam is a(n) A. multinational corporation. B. global aid firm. C. international philanthropy. D. multinational organization. E. global charity.

D. multinational organization.

Abbie recently joined a professional organization for certified public accountants, and was happy that her firm offered to pay the dues. This type of group is an example of a(n) ______ organization. A. for-profit B. nonprofit C. administrative D. mutual-benefit E. aid-based

D. mutual-benefit

A polycentric manager believes that A. organizations should maximize the number of managers from different countries in foreign operations. B. her country and culture are superior. C. managers in foreign countries should follow corporate procedures. D. native managers in foreign offices best understand native personnel and practices. E. managers in foreign countries should use whatever techniques are most effective.

D. native managers in foreign offices best understand native personnel and practices.

Armed with a stack of market research, Jalen, a marketing department manager, is in the research and development manager's office attempting to convince him to eliminate two features his engineers plan to add to a product, and replace them with two others based on customer preference. Jalen is operating in the ______ role. A. entrepreneur B. resource allocator C. disturbance handler D. negotiator E. liaison

D. negotiator

A(n) _______ system continually interacts with its environment. A. networked B. integrated C. active D. open E. porous

D. open

Alyssa works for a large amusement park and is in charge of scheduling the sizable staff, including ride attendants, food service and janitorial employees, and character actors, in an effective manner. This work is typical of A. operations research. B. contingency planning. C. quality management. D. operations management. E. qualitative analysis.

D. operations management.

Curran Investments has had a very profitable year in its business of providing financial advice. The profit would be considered a(n) ______ of the system. A. by-product B. input C. transformational process D. output E. feedback loop

D. output

Google made a pledge to investors when it went public to reserve 1% of its profit and equity to "make the world a better place." This is an example of corporate A. fairness. B. correctness. C. greenworks. D. philanthropy. E. sustainability.

D. philanthropy.

The fact that employees often have no control over work process design limits their ability to achieve zero defects, or A. quality control. B. continuous improvement. C. reengineering. D. quality assurance. E. total quality management.

D. quality assurance.

Applying techniques like statistics and computer simulations to management are characteristic of the ______ viewpoint. A. classical B. behavioral C. managerial D. quantitative E. contingency

D. quantitative

An import quota is a trade barrier in the form of a customs duty, or tax, levied mainly on imports

FALSE

An important source of information about quality in total quality management is competitors.

FALSE

Travis, an accounting manager at a hospital equipment company, has just attended software training where he learned new processes that could benefit his staff. On the plane home he began planning how he would train everyone in order to help the department reach its goals. Travis's approach is most characteristic of what type of organization? A. A bureaucratic organization. B. An operations research organization. C. A systems organization. D. A management science organization. E. A learning organization.

E. A learning organization.

McDonald's ability to deliver food quickly and inexpensively has its roots in which management theory? A. Management science viewpoint B. Behavioral viewpoint C. Mathematical viewpoint D. Systems viewpoint E. Classical viewpoint

E. Classical viewpoint

Which type of nonprofit organization offers services to all clients within its jurisdiction? A. Administrative B. Mutual-benefit C. Aid-based D. Authority E. Commonwealth

E. Commonwealth

Amazon.com maintains an easy-to-use website, has an accessible service phone number, and offers an inexpensive annual shipping fee primarily in an effort to serve which stakeholders? A. Distributors B. Strategic allies C. Government regulators D. Financial institutions E. Customers

E. Customers

Which of the following is recommended to improve corporate governance? A. Getting directors involved in the day-to-day management issues of the firm. B. Instituting an employee vote to hire or fire the CEO. C. Setting up "golden parachutes" for CEOs. D. Instituting a "cradle-to-grave" conceptualization of all new products. E. Ensuring that directors are clearly separated in their authority from the CEO.

E. Ensuring that directors are clearly separated in their authority from the CEO.

Tyler has coffee with one of his direct reports almost daily. He does this to inquire in an informal way about progress on the job, and to provide coaching and support, as well as appropriate congratulations for special efforts. Tyler is exhibiting which type of managerial skill? A. Cohesion B. Conceptual C. Intuitive D. Engagement E. Human

E. Human

______ skills consist of the ability to work well in cooperation with other people to get things done. A. Support B. Conceptual C. Personal D. Intuitive E. Human

E. Human

According to Mintzberg's work, which of the following is one of the three broad types of roles that managers play? A. Analytical B. Professional C. Interdependent D. Disciplinary E. Interpersonal

E. Interpersonal

Because the various groups that help a manager reach company goals often have different needs and wants, resolving conflicts is an essential part of which management function? A. Planning B. Clarifying C. Organizing D. Controlling E. Leading

E. Leading

Which of the following is a way to become a world citizen? A. Dress comfortably and casually, so you are ready for any activity. B. To gain an early upper hand, be very vocal and assertive. C. Be and think globally. D. Speak English at all times since it is the world's language. E. Learn rituals of respect.

E. Learn rituals of respect.

Issues like privacy, health and safety, and due process that are described as basic rights are typically tied to which of the following approaches to deciding ethical dilemmas? A. Utilitarian B. Justice C. Individual D. Liberty E. Moral rights

E. Moral rights

The Sarbanes-Oxley Act of 2002 requires that a company's chief executive officer and chief financial officer must comply with which of the following? A. Open personal lines of credit. B. Hire an ethics officer. C. Set procedures and guidelines for the board of directors. D. Hire a diversity officer. E. Personally certify financial reports.

E. Personally certify financial reports.

Fredrick Taylor and the Gilbreths were proponents of which of the following? A. Scientific management and administrative management, respectively B. Management science and human relations management, respectively C. Human relations D. Management science E. Scientific management

E. Scientific management

Which research, though flawed, drew attention to the idea that managers using good human relations could improve worker productivity? A. Maslow's hierarchy of human needs B. Operations research C. Theory Y D. Fayol's administrative management E. The Hawthorne studies

E. The Hawthorne studies

Which of the following is not a chief skill companies seek in top managers today? A. The ability to motivate and engage others. B. The ability to communicate. C. Work experience outside the United States. D. High energy levels to meet the demands of global travel and a 24/7 world. E. The ability to give a wide range of orders authoritatively.

E. The ability to give a wide range of orders authoritatively.

Which of the following is more characteristic of an entrepreneur than a manager? A. High need for achievement B. External locus of control C. Belief in personal control of destiny D. Motivated by organizational rewards E. Tolerance for risk

E. Tolerance for risk

Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs is known as A. environmentalism. B. globalization. C. ethics. D. the bottom line. E. sustainability.

E. sustainability.

The comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction is known as A. quality rating. B. quality assurance. C. reengineering. D. quality control. E. total quality management.

E. total quality management.

Scott works for an organization that describes itself as a "learning organization." As a manager, which of the following actions is Scott most likely to take while working for this organization? A. Scott encourages his employees to work alone and attempt to fix problems themselves for maximum efficiency. B. Scott likes to promote from within because those folks know how "it has always been done." C. Scott avoids the high costs of training and development since his employees are already familiar with standard procedures. D. Scott puts all of his time into running his part of the organization, and feels that reading trade journals is a big time waster. E. When Scott needs another employee, he deliberately looks for someone who will bring something new to the organization.

E. When Scott needs another employee, he deliberately looks for someone who will bring something new to the organization.

Which of the following is not a reward for practicing management? A. You can build a catalog of successful products or services. B. You and your employees can experience a sense of accomplishment. C. You can stretch your abilities and magnify your range. D. You can be rewarded with money and status for your efforts. E. You can become exempt from many of society's ethical standards.

E. You can become exempt from many of society's ethical standards.

David is an architect, and the steps he takes in designing and drawing commercial buildings would be considered which part of his organization's system? A. an input B. feedback C. an output D. an affirmation E. a transformation process

E. a transformation process

Human skills are important for ________ managers. A. top B. functional C. first-line D. middle E. all levels of

E. all levels of

A florist should consider the grocery store chain Kroger to be a ________ because consumers are able to purchase the same products at Kroger stores as it sells in its own. A. customer B. strategic ally C. supplier D. distributor E. competitor

E. competitor

Systems, contingency, and quality-management viewpoints are part of the ________ perspective. A. behavioral B. scientific C. historical D. quantitative E. contemporary

E. contemporary

Monitoring performance and taking corrective action as needed is called A. improvising. B. planning. C. organizing. D. improving. E. controlling.

E. controlling.

Recently, the Chinese government exchanged 212 railway trucks full of mango juice for a passenger jet from a Russian company. The Russian company is involved in A. importing. B. franchising. C. pseudo-exporting. D. outsourcing. E. countertrading.

E. countertrading.

Wheat producers in the United States claim that the Canadian Wheat Board is selling wheat imported into the United States at unreasonably low prices, and they fear depression of their own prices. The U.S. producers are accusing the Canadians of A. creating an embargo. B. unfair foreign advantage. C. export crashing. D. loss transactions. E. dumping.

E. dumping.

Demographic forces are part of the __________ environment of organizations. A. internal B. mechanical C. controllable D. task E. general

E. general

Meredith is a seasoned American manager, currently working in Brazil. She has noticed that some of her management techniques work well in her overseas position, but sometimes she finds it more effective to defer to the practices of her Brazilian counterparts. Meredith can be described as a(n) ______ manager. A. parochial B. ethnocentric C. expatriate D. polycentric E. geocentric

E. geocentric

Last summer a representative of OSHA, the agency responsible for enforcing health and safety regulations, visited one of Emilio's construction sites and his company, Gutierrez Construction, was fined for several violations. To this company, OSHA represents a ______, part of an organizations' ______. A. special-interest group; task environment B. government regulator; general environment C. political-legal force; general environment D. special-interest group; external environment E. government regulator; task environment

E. government regulator; task environment

Organizations that actively create, acquire, and transfer knowledge within themselves and are able to modify their behavior to reflect this new knowledge are called __________ organizations. A. Hawthorne B. information C. Theory Y D. TQM E. learning

E. learning

According to technology philosopher Nicholas Negroponte, the global market driven by electronic information results in an increase of minifirms and A. multinational corporations. B. unstable governments. C. nonprofit organizations. D. intercorporate conflict. E. megamergers.

E. megamergers.

Frank and Lillian Gilbreth identified 17 basic units of ______, each of which they called a "therblig." A. time B. distance C. energy D. data E. motion

E. motion

BHP Billilton is an Australian mining company with operations in Brazil, Canada, South Africa, and the United States, among other countries. This company is a A. multiregional conglomerate. B. multinational organization. C. global concern. D. multiregional firm. E. multinational corporation.

E. multinational corporation.

The strategy for minimizing errors by managing each stage of production is called A. TQM. B. six sigma. C. quality assurance. D. zero defects. E. quality control.

E. quality control.

According to a Fortune article, the scarcest, most valuable resource in business is not financial capital but A. renewable resources. B. government support. C. highly innovative technology. D. a young workforce. E. skilled, effective managers.

E. skilled, effective managers

Taylor called the tendency for people to deliberately work at less than full capacity A. loafing. B. underachieving. C. underperforming. D. therbliging. E. soldiering.

E. soldiering.

Describe ethnocentrism and the dangers of being an ethnocentric manager when working overseas, and discuss what other approach may be superior.

Ethnocentric managers believe that their native country, culture, language, and behavior are superior to all others. Ethnocentric managers tend to believe that they can export the managers and practices of their home countries to anywhere in the world and that they will be more capable and reliable. Ethnocentrism can be bad for business. A survey of 918 companies with home offices in the United States, Japan, and Europe found that ethnocentric policies were linked to such problems as recruiting difficulties, high turnover rates, and lawsuits over personnel policies. Successful international managers are geocentric instead; that is, they accept the differences and similarities between domestic and foreign people and cultures and use whatever management techniques are most effective in particular situations.

One of the challenges for managers is managing personal happiness and life goals. Explain why this is a challenge for managers. Discuss how you think these ideas apply to you in the future.

Every person must consider whether his job (managerial or otherwise) helps him or her reach his or her own happiness and goals. Many managers find the job of management to be unfulfilling—they often feel they have to give up too much of their personal lives because of the long hours or travel, or they don't enjoy the constant activity that management entails. Also, many managers feel caught in the middle between upper levels of management and their employees. The student should offer an example of how this may or may not affect her in the future.

An intrapreneur is someone who is interested in starting a new organization by exploiting opportunities developed on his or her own.

F

An information organization has three parts: creating and acquiring knowledge, transferring knowledge, and modifying behavior.

FALE

A greenfield venture is a foreign subsidiary created to exploit previously untapped natural resources in another country

FALSE

A parochial manager is able to consider decisions and events from a variety of viewpoints

FALSE

A supplier is a person or an organization that provides materials or labor to consumers.

FALSE

According to Peter Drucker, "knowledge workers" have very little technical skill.

FALSE

Among cultural patterns of which one should be aware is the importance of making direct eye contact most of the time with Japanese businesspeople.

FALSE

In business, innovation is defined as finding ways to deliver new or better goods or services.

TRUE

Discuss the cultural differences in language, interpersonal space, time orientation, and religion. Why are these factors important to successful international business?

Language: Only 20% of the people of the world speak English, and over 3,000 different languages are spoken. Even when speaking English, how particular words are to be interpreted can vary. Interpersonal space: People of different cultures have different ideas about what is acceptable interpersonal space—that is, how close or far away one should be when communicating with another person. This can lead to cross-cultural misunderstandings and discomfort. Time orientation: Individuals in cultures with monochronic time prefer doing one thing at a time, and perceive time as being limited, precisely segmented, and schedule driven. Those with polychronic orientation find multitasking acceptable, and view time as flexible and multidimensional. This can lead to cross cultural misunderstandings. Religion: Major religions include Christianity, Islam, Hinduism, Buddhism, Judaism, and Chinese traditional religions; members of these religions vary widely in their most important work-related values.

List the three levels of management in the traditional pyramid. Give an example of a task that a manager at each level might perform.

Managers may be classified into three levels: top, middle, and first-line. Top managers make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it. They need to pay a lot of attention to the environment outside the organization, being alert for long-run opportunities and problems and devising strategies for dealing with them. Thus, executives at this level must be future oriented, dealing with uncertain, highly competitive conditions. Middle managers implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them. Following the plans of middle and top managers, first-line managers make short-term operating decisions, directing the daily tasks of nonmanagerial personnel.

Seven Challenges to Being an Exceptional Manager?

Managing for competitive advantage - staying ahead of rivals Managing for diversity - the future won't resemble the past Managing for globalization - the expanding management universe Managing for information technology Managing for ethical standards Managing for sustainability— The business of green Managing for your own happiness & life goals

Summarize the debate for and against social responsibility. What is your opinion, and why?

Milton Friedman represents the view against social responsibility, as he said, "The social responsibility of business is to make profits." That is, unless a company focuses on maximizing profits, it will become distracted and fail to provide goods and services, benefit the stockholders, create jobs, and expand economic growth—the real social justification for the firm's existence. The argument in favor of corporate social responsibility includes the following: 1. Businesses have an ethical obligation to contribute to society's welfare. 2. Businesses create problems, and should help solve those problems. 3. Businesses have resources to solve problems that other entities do not have. 4. Socially responsible behavior can create a favorable public image, which in turn makes the business more profitable.

In polychronic time, time is viewed as being flexible and multidimensional.

TRUE

Identify and describe the four managerial functions. Give a specific example of each.

Planning is setting goals and deciding how to achieve them. Organizing is arranging tasks, people, and other resources to accomplish the work. Leading is motivating, directing, and otherwise influencing people to work hard to achieve the goals. Controlling is monitoring performance, comparing it to goals, and taking corrective action as needed. The student should give an example of each.

Herman Miller, maker of office furniture, practices corporate social responsibility through sustainability efforts

TRUE

Sustainability is defined as preserving the natural environment in its current state for use by future generations.

T

A "therblig," a term coined by Frank Gilbreth, is a unit of motion in the workplace.

TRUE

A first-line manager directs the daily tasks of non managerial personnel.

TRUE

A general manager typically oversees several departments within an organization.

TRUE

A learning organization is one that actively creates, acquires, and transfers knowledge within itself and is able to modify itself to reflect new knowledge.

TRUE

Among Mary Parker Follett's most important contributions to management was her belief that conflicts within organization should be resolved to mutual satisfaction through a process called integration.

TRUE

Among the functions of a manager in a learning organization are generating and generalizing ideas with impact.

TRUE

Andrew Carnegie, steel magnate and supporter of free libraries, is an example of a philanthropist.

TRUE

As a manager, you cannot control the forces in the general environment

TRUE

Because the human relations movement was considered too simplistic for practical use, it has been superseded by the behavioral science approach to management.

TRUE

Becoming a world citizen includes learning how not to be an "ugly American."

TRUE

Bureaucracy, as conceptualized by Max Weber, was his ideal way to structure an organization.

TRUE

Cheating may be done as a way to redress perceived unfairness.

TRUE

Collaborative computing involves using state-of-the-art computer software and hardware to help people work better together.

TRUE

Continuous learning in an organization is more likely to occur in an open system than in a closed one.

TRUE

Cuban cigars and sugar cannot legally be imported into the United States because of a trade embargo

TRUE

Customers are those who pay to use an organization's goods or services.

TRUE

Deglobalization is a trend to move production back to the United States over fears about geopolitics or energy prices.

TRUE

Deming and Juran were part of the quality-management movement.

TRUE

Demographic forces include influences on an organization arising from changes in the characteristics of a population, such as age or ethnic origin.

TRUE

Ethnocentrism is a form of parochialism

TRUE

Feedback is one of the four parts of a system.

TRUE

Gary Hamel, cofounder of the Management Innovation Lab, believes than management innovation can be improved by identifying and sometimes challenging core beliefs that people have about an organization.

TRUE

General Motors working with Shanghai Automotive Industry Group to build Buicks in China is an example of a strategic alliance.

TRUE

Government regulators are regulatory agencies that establish ground rules under which organizations may operate.

TRUE

Great communications systems have been a hallmark of great civilizations.

TRUE

Shanice recently took a management job in the book publishing industry, which is undergoing dramatic change. She should study theoretical perspectives of management to help her predict some of the probable outcomes of this change and help her decide on potential strategy going forward.

TRUE

Telecommunication company Cisco Systems abandoned its "management councils" experiment, which had replaced a traditional hierarchical structure, because the councils slowed decision making.

TRUE

The "management process" is sometimes called the "four management functions"

TRUE

The GLOBE cultural dimension that examines the extent to which a society should minimize gender discrimination and role inequalities is known as gender egalitarianism.

TRUE

The Sarbanes-Oxley Act was a response by Congress to an array of high-profile U.S. business scandals at the beginning of the 21st century.

TRUE

The application to management of techniques such as statistics and computer simulations is known as quantitative management.

TRUE

The flaw in the individual approach is that what results in the individual's best interests is not always what is in everyone's interest long term.

TRUE

The global economy has had a revitalizing effect on some parts of industrial America.

TRUE

The global economy refers to worldwide conditions by which goods, people, and money can move more freely.

TRUE

The idea that workers become more productive if they think that managers care about their welfare is called the "Hawthorne Effect."

TRUE

The internet is a global network of independently operating but interconnected computers, linking hundreds of thousands of smaller networks around the world.

TRUE

The main purpose of a nonprofit organization is to offer services to some clients.

TRUE

The manager following the contingency viewpoint would ask, "What management method is the best to use under these particular circumstances?"

TRUE

The monitor function is an example of the informational roles often played by managers.

TRUE

The organization that assists in smoothing the flow of money between nations is the International Monetary Fund

TRUE

The practice of management is both an art and a science

TRUE

The quantitative viewpoint on management is part of the historical perspective.

TRUE

The reasons that companies expand internationally typically have to do with making or saving money.

TRUE

Turnover rates are higher among managers returning from overseas assignments than for those who do not go abroad.

TRUE

Unsustainable business practices have resulted from an often accepted but untrue notion that natural resources are limitless.

TRUE

Values are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior.

TRUE

Virgnia Rometty CEO of IBM, believes that her success is due in part to her ability to take risks

TRUE

When Carla revises the waitstaff schedule at her restaurant to have more personnel available during the newly busy breakfast rush, she is engaging in organizing.

TRUE

Define the three types of principal skills that managers need according to Robert Katz. At which level of management is each skill most important?

Technical skills consist of job-specific knowledge needed to perform well in a specialized field. Having the requisite technical skills seems to be most important at the lower levels of management—that is, among first-line managers. Conceptual skills consist of the ability to think analytically, to visualize an organization as a whole and understand how the parts work together. Conceptual skills are particularly important for top managers, who must deal with problems that are ambiguous but that could have far-reaching consequences. Human skills are the ability to work well with others to get things done. These skills—the ability to motivate, to inspire trust, to communicate with others—are necessary for managers of all levels.

Explain the various ways that companies can expand internationally. List them in order of lowest to highest risk and investment.

The alternatives are: 1. Global outsourcing: using suppliers outside the country to provide goods and/or services. 2. Importing, exporting, and countertrading: buying foreign products for domestic resale, selling domestic products outside the country, or trading for goods. 3. Licensing or franchising: allowing a foreign company to distribute a good or service for a fee, or allowing a foreign company to use a brand name and organizational know-how in return for a fee and percentage of profits. 4. Joint venture: allying with a foreign company to start a new enterprise together in a foreign country. 5. Wholly owned subsidiary: buying or starting a foreign subsidiary.

Explain the ideas emphasized by the behavioral viewpoint. List the three phases of development of the behavioral viewpoint and discuss at least one major contribution and its pioneer from each of the first two phases.

The behavioral viewpoint emphasized the importance of understanding human behavior and of motivating employees toward achievement. The three phases include the early behaviorism, the human relations movement, and behavioral science. Students should describe at least one of the following: The three people who pioneered behavioral theory were Hugo Munsterberg, Mary Parker Follett, and Elton Mayo. Hugo Munsterberg was the first to apply psychology to industry and is called "the father of industrial psychology." Mary Parker Follet believed that organizations should become more democratic, with managers and employees working cooperatives. She anticipated some of today's concepts of "self-managed teams," "worker empowerment," and "interdepartmental teams." Elton Mayo conducted the Hawthorne studies, which demonstrated the Hawthorne effect, in which employees worked harder if they received added attention, if they thought that managers cared about their welfare or that supervisors paid special attention to them. Students should describe at least one of the following: The two theorists who contributed most to the human relations movement, which proposed that better human relations could increase worker productivity, were Abraham Maslow and Douglas McGregor. Abraham Maslow developed the hierarchy of needs in his research to study motivation. Douglas McGregor developed Theory X versus Theory Y to explain managers' attitudes toward employees.

Identify at least three benefits for companies of expanding internationally, and provide an example of each.

The benefits include: 1. Availability of supplies. For years oil companies, for example, have expanded their activities outside the United States in seeking cheaper or more plentiful sources of oil. 2. New markets for old products. Sometimes a company will find, as cigarette makers have, that the demand for their product has declined domestically but that they can still make money overseas. 3. Lower labor costs. For example, the rationale for using maquiladoras, manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens, is that they provide less expensive labor for assembling everything from appliances to cars. 4. Access to financial capital. Sometimes a foreign government will offer a subsidy in hopes of attracting a company that will create jobs, as Ireland did in the 1970s for Lotus sports-car maker John DeLorean. 5. Avoidance of trade barriers. For example, Japan imposes tariffs on agricultural products, such as rice, imported from the United States. To avoid these penalties, a company might create a subsidiary to produce the product in the foreign country.

List the characteristics that most entrepreneurs have.

The characteristics that most entrepreneurs have include: high need for achievement, belief in personal control of destiny, high energy level and action orientation, high tolerance for ambiguity, and self-confidence and tolerance for risk.

Identify and define the approaches to deciding ethical dilemmas

The four approaches are utilitarian, individual, moral-rights, and justice. The utilitarian approach seeks to maximize the greatest good for the greatest number of people. The individual approach is guided by what will result in the individual's best long-term interests. The moral-rights approach is focused on respecting the fundamental rights of human beings. The justice approach is guided by impartial standards of fairness and equity.

Identify at least four forces in the general environment of organizations and provide an example of each for an industry or business. How do these forces differ from the external stakeholders in the task environment?

The general environment forces are economic, technological, sociocultural, demographic, political-legal, and international. Economic forces consist of the general economic conditions and trends—unemployment, inflation, interest rates, economic growth—that may affect an organization's performance. Technological forces are new developments in methods for transforming resources into goods or services. For example, biotechnology may well turn health and medicine upside down in the coming decades. Sociocultural forces are influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization. The interest in health and fitness, for instance, led to a decline in sales of cigarettes, whiskey, red meat, and eggs. Demographic forces are influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin. The birthrate is up for all racial and ethnic groups, but the increase for Hispanics is the largest. Political-legal forces are changes in the way politics shape laws and laws shape the opportunities for and threats to an organization. In the United States, whatever political view tends to be dominant at the moment may be reflected in how the government handles antitrust issues, in which one company tends to monopolize a particular industry. International forces are changes in the economic, political, legal, and technological global system that may affect an organization. For example, economic integration of the European Union is creating threats and opportunities for American companies. These forces differ from external stakeholders in the task environment because an organization may be able to influence or control elements in its task environment, but rarely in its general environment.

Describe the history of communication and how it has been important to great civilizations through the modern day, and the concept of the "global village."

The hallmark of great civilizations has been their great systems of communications. In the beginning, communications was based on transportation: the Roman Empire had its network of roads, as did other ancient civilizations, such as the Incas. Later the great European powers had their far-flung navies. In the 19th century, the United States and Canada unified North America by building transcontinental railroads. Later the airplane reduced travel time between continents. Transportation began to yield to the electronic exchange of information. Beginning in 1844, the telegraph ended the short existence of the Pony Express and, beginning in 1876, found itself in competition with the telephone. The amplifying vacuum tube, invented in 1906, led to commercial radio. Television came into being in England in 1925. During the 1950s and 1960s, as television exploded throughout the world, communications philosopher Marshall McLuhan posed the notion of a "global village," which refers to the "shrinking" of time and space as air travel and the electronic media have made it easier for the people of the globe to communicate with one another. Then the world became even faster and smaller. Fifteen years ago, cell phones, pagers, fax, and voice-mail links barely existed. Then came the Internet, the worldwide computer-linked "network of networks," of which there were an estimated 1.7 billion users throughout the world in late 2000. The arrival of the Web quickly led to e-commerce, or electronic commerce, the buying and selling of products and services through computer networks.

Explain the emphasis of the quantitative viewpoint. Describe the two major approaches to this viewpoint.

The quantitative viewpoint emphasizes that mathematically based techniques can help managers be more effective. The two approaches of quantitative management are management science and operations management. Management science focuses on using mathematics to aid in problem solving and decision making. Operations management focuses on managing the production and delivery of an organization's products or services more effectively.

Describe the systems viewpoint and provide examples of each of the four associated parts using a real or fictitious company.

The systems viewpoint sees organizations as a system, either open or closed, with inputs, outputs, transformation processes, and feedback. Inputs are the people, money, information, equipment, and materials required to produce an organization's goods or services. Example: For a jewelry designer—designer, money, artistic talent, gold and silver, tools, marketing expertise. Transformational processes are the organization's capabilities in management and technology that are applied to converting inputs into outputs. Example: Designer's management skills (planning, organizing, leading, controlling), gold and silver smithing tools and expertise, website for marketing. Outputs are the products, services, profits, losses, employee satisfaction or discontent, produced by the organization. Example: Gold and silver rings, earrings, bracelets, and the like. Feedback is the information about the reaction of the environment to the outputs, which affects the inputs. Example: Web customers like African-style designs or dislike imitation Old English designs.

Discuss at least three ways that an organization can promote ethics.

There are several ways an organization may promote high ethical standards on the job, as follows: Create a strong ethical climate: An ethical climate represents employees' perceptions about the extent to which work environments support ethical behavior. It is important for managers to foster ethical climates because they significantly affect the frequency of ethical behavior. Screen prospective employees: Companies try to screen out dishonest, irresponsible employees by checking applicants' résumés and references. Some also use personality tests and integrity testing to identify potentially dishonest people. Institute an ethics code and training program: A code of ethics consists of a formal written set of ethical standards guiding an organization's actions. Most codes offer guidance on how to treat customers, suppliers, competitors, and other stakeholders. The purpose is to clearly state top management's expectations for all employees. Reward ethical behavior and protect whistle-blowers: It's not enough to simply punish bad behavior; managers must also reward good ethical behavior, as in encouraging (or at least not discouraging) whistle-blowers. A whistle-blower is an employee who reports organizational misconduct to the public, such as health and safety matters, waste, corruption, or overcharging of customers.

Describe total quality management, and list at least three of the four components of it that are used by organizations to implement it.

Total quality management (TQM) is a comprehensive approach, led by top management and supported throughout the organization, dedicated to continuous quality improvement, training, and customer satisfaction. The four components of TQM are as follows: 1. Make continuous improvement a priority. 2. Get every employee involved. 3. Listen to and learn from customers and employees. 4. Use accurate standards to identify and eliminate problems

what are the rewards of Studying Management?

Understanding how to deal with organizations from the outside Understanding how to relate to your supervisors Understanding how to interact with coworkers Understanding how to manage yourself in the workplace

Why has there recently been renewed interest in corporate governance? How can it be improved?

When the CEOs of firms such as Enron, WorldCom, Tyco, and Adelphia were doing the things that got them convicted for fraud, their directors did not seem to be protecting the stockholders and other stakeholders by keeping an eye on senior management. Indeed, after the Enron and other scandals, there was a resumed interest in what is known as corporate governance, the system of governing a company so that the interests of corporate owners and other stakeholders are protected. Perhaps the biggest problem in corporate governance concerns the independence of the directors. Inside directors may be members of the firm, outside directors are supposed to be elected from outside the firm. But in some companies, the outside directors have been handpicked by the CEO because they are friends, because they have a business relationship with the firm, or because they supposedly "know the industry." In such instances, the board of directors may be too lenient on the CEO when he or she asks for leeway to pursue certain policies. Now more attention is being paid to strengthening corporate governance so that directors are clearly separated in their authority from the CEO. While directors are not supposed to get involved with day-to-day management issues, they are now feeling more pressure from stockholders and others to have stronger financial reporting systems and more accountability.

Espirit de corps

a feeling of pride, a sense of unity, enthusiasm and common loyalty shared by the members of a particular group

what are the Rewards of Practicing Management?

experience a sense of accomplishment stretch your abilities and magnify your range. build a catalog of successful products or services.

Technical skills needed by managers are defined as

the job-specific knowledge needed to perform well in a specialized field.