MAN 3025 exam #2

Which of the following is most likely to use a diversification strategy? A shoe store A flower shop A tax preparation business A lawn service A grocery store

A grocery store Explanation Diversification strategy means operating several businesses in order to spread the risk. A grocery store sells food, toiletries, pharmaceuticals, cards, flowers, and often more.

General Motors tests applicants for autoworker positions on their mechanical dexterity in an attempt to determine if they have the capability of performing an assembly-line job. This is an example of: A. physical ability testing. B. personality testing. C. situational testing. D. unstructured testing. E. role-play testing.

A. physical ability testing.

During Lewin's changing stage, managers should A.Reduce the barriers to change B.Give employees new models for behavior C.Reinforce the desired change D.Make employees dissatisfied with the present situation E.Encourage employees to exhibit the new change

B.Give employees new models for behavior

In a SWOT analysis, an example of an organization's strength would be: A. new technology. B. new entrants. C. skilled management. D. geographical expansion. E. imitable resources.

C. skilled management.

Walmart's implementation of RFID, a type of technology that allows it to improve inventory tracking, is an example of a(n) _______ change. A.Reactive B.Incremental C.Proactive D.Responsive E.Radical

C.Proactive

Which of the following is an example of a proactive change? Multiple Choice Ciara cannot get permission to hire another person until her group misses several deadlines. Ciara's staff is unhappy about the long hours they have been working and several of them quit before she knows there is a problem. Ciara's group sent a product that was nearing its launch date back to the drawing board based on a competitor's superior new offering. Ciara explores improvements in bonus structures with her staff and begins to implement them despite the fact that her employees are generally content. Ciara is constantly "putting out fires," responding to daily crises in her group.

Ciara explores improvements in bonus structures with her staff and begins to implement them despite the fact that her employees are generally content.

Sales this year at Donna's Pawn Shop have been high, and based on several factors, Donna projects next year's sales to also be good. However, even with her forecast of continued strong sales, Donna and her business partner need to develop a plan in case sales drop unexpectedly. ________ is the type of planning for alternative future conditions. A managerial pact A vision plan Background planning Trend analysis Contingency planning

Contingency planning Explanation Contingency planning, also known as scenario planning and scenario analysis, is the creation of alternative hypothetical but equally likely future conditions.

Good job design requires matching the level of responsibility to the level of A.Liability B.Dependability C.Delegation D.Authority E.Accountability

D.Authority

The purpose of the strategic human resource process is to A.maintain a stable workforce for minimum expense. B.inform the grand strategy. C.find the human resources needed in a timely fashion. D.get optimal work performance to help realize the company's mission and vision. E.be compliant with the law

D.get optimal work performance to help realize the company's mission and vision.

The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life are known as A.espoused values. B.stories. C.myths. D.rites and rituals. E.assumptions.

D.rites and rituals.

Alita is participating with other division heads in a discussion about new international competition for the firm and what the organization's goals should be. She is participating in A.operational planning. B.controlling. C.tactical planning. D.strategic planning. E.writing a mission statement.

D.strategic planning.

______ occurs when people are hired or promoted, or denied hiring or promotion, for reasons not relevant to the job. A hostile working environment Quid pro quo Discrimination Bullying Affirmative action

Discrimination Explanation Discrimination occurs when people are hired or promoted, or denied hiring or promotion, for reasons not relevant to the job, such as skin color or eye shape, gender, religion, national origin, and the like.

You have an idea for a company that sources fruits from local farms and makes fresh juices on a daily basis. You want to start a subscription-based service in which households within a 100-mile radius subscribe to your plan and receive two gallons of freshly squeezed juice (for example, cherry juice, apple juice, lemonade) twice a week. As you think about starting your business, you ask yourself: How rare is the service I am offering? How valuable is it? Can I organize the company to maximize my advantages in the marketplace? After asking these questions, review and identify which question from VRIO did you forget to ask? Is the resource or capability valuable? Is the firm organized to exploit the resource of capability? Is the resource or capability costly for other firms to imitate? What values should be emphasized? Is the resource or capability currently controlled by only a few firms or no other firms?

Is the resource or capability costly for other firms to imitate? Explanation VRIO is a framework for analyzing a resource or capability to determine its competitive strategic potential by answering four questions about its Value, Rarity, Imitability, and Organization (VRIO). The one question you forgot to ask was, Is the resource or capability costly for other firms to imitate?

What is the primary objective of a plan? It outlines how goals are going to be met. It provides information about company financials for stakeholders. It guides ethical decision making. It explains the company's slogan. It sets research and development priorities.

It outlines how goals are going to be met. Explanation A plan is a document that outlines how goals are going to be met.

Which of the following is NOT part of the strategic human resource management process? Orient, train and develop personnel. Recruit and select people. Negotiate employment contracts. Establish a grand strategy. Plan for human resources needs.

Negotiate employment contracts. Explanation The steps of the strategic human resource management process are to establish the mission and the vision; establish the grand strategy; formulate the strategic plans; plan human resources needed; recruit and select people; orient; train, and develop; and finally, perform appraisals of people. (See Figure 9.1.)

Due to recent budget shortfalls, Muna is being forced to lay off 50 employees at her firm. She plans to offer a severance package that may be small, but it is still something. Muna also wants to be sure to protect the reputation of the company so that future layoffs will not be required. How will she be able to protect the reputation of the company while laying off so many employees? Multiple Choice She should have the laid off employees sign a nondisparagement agreement. She should complete an exit interview with each laid off employee. She should transfer employees to jobs overseas at another location. Instead of laying off the employees, she should demote them so that payroll is less. She should force retirements and then lay off until she reaches the number needed for the budget.

She should have the laid off employees sign a nondisparagement agreement.

_______ capital is the economic or productive potential of strong, trusting, and cooperative relationships. This type of capital can help you land a job; a national survey of recruiters revealed that 74% had found the highest-quality applicants through employee referrals. Personal Relational Human Productivity Social

Social Explanation Social capital is the economic or productive potential of strong, trusting, and cooperative relationships. This type of capital can help you land a job; a national survey of recruiters revealed that 74% had found the highest-quality applicants through employee referrals.

___________ refers to educating technical and operational employees in how to better do their current job. Assessment Evaluation Orientation Development Training

Training Explanation Training seeks to upgrade the skills of technical and operational employees. Electronics technicians, data processors, computer network administrators, and X-ray technicians, among many others, need to be schooled in new knowledge as the requirements of their fields change. Training, then, refers to educating technical and operational employees in how to better do their current job.

At Toys 4 Tiny Tots, employees know that during the December shopping season they are often required to work different schedules, weekends, and overtime. The December work schedules at Toys 4 Tiny Tots is an example of a(n) ______ change because workers have experienced it in the past. (They experience it every December.) innovative radically innovative incremental reactive adaptive

adaptive Explanation Adaptive change is reintroduction of a familiar practice, or the implementation of a kind of change that has already been experienced within the same organization.

Phillip, owner of Technology Sales, said, "We have to focus on our customers and how can we beat the competition, so we have to be flexible." He encourages his R&D department to develop innovative products and focuses on being quick to respond to market changes. Technology Sales has a(n) _____. market culture clan culture goal-driven agenda focused approach adhocracy culture

adhocracy culture Explanation An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace. Adhocracy cultures are well suited for companies in industries undergoing constant change.

Patricia, the manager of Prime Health Club, was telling her new trainer that "I have many decisions to make in a day, and as the club manager, during the course of a week, I have to give orders to most of the 35 employees. Then there is my budget and the club resources, which I oversee." Patricia's _______ gives her the right to make decisions, give orders, and utilize resources. Multiple Choice delegation authority work specialization responsibility power

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

Elly and Sylvia, owners of Organic Foods, do not have a formal policy about dress code and work procedures because they see their company as a family place that is enjoyable to work for. Elly and Sylvia believe that if you treat employees like family, the company will do well and grow. These beliefs by the owners of Organic Foods represent the core values of their organization's culture, and are known as ____. rites and rituals basic assumptions family codes a code of ethics observable artifacts

basic assumptions Explanation Basic assumptions, which are not observable, represent the core values of an organization's culture. They are those that are taken for granted and, as a result, are difficult to change.

Dora is conducting a performance appraisal for Sue, one of her employees. The company's performance appraisal form asks her to rate Sue's performance on various items like "Submits reports on time with minimal errors" on a scale from 1 to 5. Dora's is using a ______ appraisal system. Multiple Choice MBO results behaviorally anchored rating scale (BARS) trait 360-degree

behaviorally anchored rating scale (BARS) Explanation The behaviorally anchored rating scale (BARS) rates employee gradations in performance according to scales of specific behaviors. For example, a five-point BARS rating scale about attendance might go from "Always early for work" to "Frequently late," with gradations in between.

The idea that proposes that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time, cognitive capacity, values, skills, habits, and unconscious reflexes, is known as _____. bounded rationality MBO rational decision making nonrational decision making analytics

bounded rationality Explanation The bounded rationality concept suggests that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time, cognitive capacity, values, skills, habits, and unconscious reflexes (see Figure 7.2). Because of such constraints, managers don't make an exhaustive search for the best alternative. Instead, they follow the satisficing model in which managers seek alternatives until they find one that is satisfactory, not optimal.

Instructor Services is a technology company that offers many IT services in highly populated southern Ohio. The company's services and products include computer training, support, monitoring, repair, network design, virus removal, and software upgrades. It even sells refurbished computers. The source of Instructor Services' strategic position is low-profit margin and many customers. broad needs and many customers. high-profit margin and few customers. broad needs and few customers. high-profit margin and many customers.

broad needs and many customers. Explanation Strategy is the creation of a unique and valuable position. Strategic position emerges from three sources. One of the sources, like Instructor Services', is broad needs, many customers. This strategy is oriented toward serving the broad needs of many customers.

The BCG matrix is a means of evaluating strategic business units on the basis of their differentiation and profitability. BCG ratio. product quality and profitability. business costs and share of the market. business growth rates and share of the market.

business growth rates and share of the market. Explanation The BCG matrix is a means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market.

Strategy formulation is the process of strategically controlling your employees' actions. developing a strong diversity plan. gaining information about competition and then selecting which information to react to. choosing among different strategies and altering them to best fit the organization's needs. selecting the employees who best fit the organization.

choosing among different strategies and altering them to best fit the organization's needs. Explanation Strategy formulation is the process of choosing among different strategies and altering them to best fit the organization's needs.

Turnbull Software is a medium-sized but growing company that works diligently to create a supportive and familylike atmosphere for its employees. It provides superior benefits and involves employees in decisions large and small. Turnbull has a(n) ______ culture. Multiple Choice clan espoused adhocracy market hierarchy

clan

Employees and customers are treated like a family at Bayou Seafood Café. Paul and Betsey, the owners, work to encourage unity to increase their employees' job satisfaction and commitment. At their café, Paul and Betsey have built a(n) adhocracy culture. clan culture. bureaucracy culture. goal-driven agenda. market culture.

clan culture. Explanation A clan culture has an internal focus and values flexibility rather than stability and control. Like a family-type organization, it encourages collaboration among employees, striving to encourage cohesion through consensus and job satisfaction and to increase commitment through employee involvement. Clan organizations devote considerable resources to hiring and developing their employees, and they view customers as partners.

When organizations endeavor (1) to keep their costs (and hence the prices of their products or services) below those of competitors and (2) to target a wide market, they are utilizing a _____ strategy. reinventing focused-differentiation cost-focus cost-leadership differentiation

cost-leadership Explanation The cost-leadership strategy is to keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market.

After being referred by a friend, Hasina attended a job interview. She didn't feel it went well but was surprised when her friend told her the boss didn't like that she had worn her hijab, a traditional headscarf. The boss told a coworker after the interview, "Our customers prefer working with Christians." This is an example of affirmative action. quid pro quo. discrimination. hostile work environment. favoritism.

discrimination.

When an organization operates several businesses to spread the risk, such as a landscaping company that offers not only landscaping services but also lawn care, snow removal, and other services, that business is utilizing a ____ strategy. diversification focused-differentiation multiservice diversity differentiation

diversification Explanation A diversification strategy means operating several businesses to spread the risk. You see a diversification strategy in action at a grocery store that sells food, toiletries, pharmaceuticals, cards, flowers, and often more.

Hiromi started a new job with a growing consulting firm and was surprised to find that most employees had no job titles. A coworker explained that the founders wanted to create a level playing field, allowing motivated employees to seek leadership roles on a project-by-project basis. No job titles, here, is an example of increasing accountability. measuring activities. stabilizing structure. reinforcing hierarchy. embedding culture.

embedding culture.

Della, the new CEO of Sky Advertising, has been with the firm for over 25 years. She was picked by the board to turn the 85-year-old agency around, because it had lost its edge in the Internet age. To infuse new life and energy into the agency, Della wants to bring back some old ideas that previously worked at Sky. She plans on having managers and veteran employees instruct each other about the organization's values, beliefs, and expectations; telling stories about some of the company legendary ad campaigns; coming up with a slogan that summarizes Sky's abilities in a simple and memorable phrase; and having quarterly ceremonies where creativity and innovation are rewarded. The things that Della wants to do are all examples of TQM. embedding culture. decentralizing authority. a value stabilizing plan. MBO.

embedding culture. Explanation Changing organizational culture is a teaching process in which organizational members teach each other about the organization's preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: formal statements; slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training, and coaching; physical design; rewards, titles, promotions, and bonuses; organizational goals and performance criteria; measurable and controllable activities; organizational structure; and organizational systems and procedures.

HP founders David Packard and William Hewlett created a close-knit organizational culture that gave a lot of responsibility to employees and fostered innovation within the company, which were clearly stated values of the firm's founders. This is an example of _____. focused values a diverse perspective enacted values analytics espoused values

espoused values Explanation Espoused values are the explicitly stated values and norms preferred by an organization, as may be put forth by the firm's founder or top managers. Example: HP founders David Packard and William Hewlett created a close-knit organizational culture that gave a lot of responsibility to employees and fostered innovation within the company.

You are the CEO of a major corporation. You have been tasked by the board of directors to turn the company around as they just let the last CEO go for a difference in opinion. Being new, where would you focus your attention first? customer loyalty stimulating innovation execution profit growth finding qualified employees

execution

Personal Care Products recently introduced a new acai berry shampoo. Rinn, director of new product development, has just reviewed the dismal results. As it appears that his team adequately researched the product's acceptance by consumers prior to its introduction, he is confused by the outcome. But to keep his team open to innovation, Rinn should Multiple Choice fire and replace the team lead as an example to others. ignore the product failure. foster an innovative culture and climate that permits experimentation, risk taking, and failure. demote the team leader. step down as director.

foster an innovative culture and climate that permits experimentation, risk taking, and failure. Explanation Managers should reward experimentation and support a culture that celebrates failure to encourage innovation.

Among the jobs titles at Greensboro Regional Hospital are Chief of Medical Services, Director of Administrative Services, and Director of Outpatient Services. Greensboro has a ______ structure. Multiple Choice network matrix functional simple divisional

functional

During Lewin's changing stage, managers should encourage employees to exhibit the new change. make employees dissatisfied with the present situation. reinforce the desired change. give employees new information, perspectives, and models for behavior. reduce the barriers to change.

give employees new information, perspectives, and models for behavior. Explanation In the changing stage, employees need to be given the tools for change: new information, new perspectives, and new models of behavior.

Access Office Equipment has shifted to sales and service of laptops and PCs, where it has the potential to triple the number of its customers. The company is no longer offering repairs on older types of office equipment because the demand for service on this equipment is low, and profits in that part of the business have dropped significantly. Access Office Equipment is implementing a _____ strategy. growth diverse cutting-edge stability defensive

growth Explanation A growth strategy is a grand strategy that involves expansion, as in expanding sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served. In a variation of this strategy, it can grow market share or profits by innovating improvements in products of services (an innovation strategy).

Which of the following is not an inside force that indicates organizational change might be needed? high levels of stress among employees job dissatisfaction high turnover increased competition excessive conflict between managers and employees

increased competition Explanation Inside forces that indicate the need for change in the organization include human resources problems such as stress, job dissatisfaction, absenteeism and turnover, and conflict between managers and employees. Competition is an outside force.

Which of the following is not a leading reason that employees resist change? climate of mistrust individual predisposition toward change fear of failure lack of personal ethics nonreinforcing reward systems

lack of personal ethics Explanation Employees may resist change for all many reasons, but a lack of personal ethics is not among them.

Quality Paper Products utilizes a structure that includes functional divisions, such as accounting and production, and a divisional chain of command, such as the home products and office divisions. For example, Mariana, a salesperson, reported to both her sales manager and the office products manager when she first started working on the city of Springfield account. Quality Paper Products has a modular structure. hollow structure. team-based approach. matrix structure. geographic-divisional structure.

matrix structure. Explanation In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures, vertical and horizontal.

Peter, the owner of Happy Burger, is involved in the company's daily decisions and has established procedures for every task. The company rules are clearly specified in the handbook, and Peter also believes in close supervision of all employees. Happy Burger is a(n) _______ organization. mechanistic informal decentralized non-hierarchical organic

mechanistic Explanation In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

A company's overall ability to execute is a function of effectively executing according to three processes, but Bossidy and Charan believe that the _____ process is the most important. people leading planning strategy operations

people Explanation A company's overall ability to execute is a function of effectively executing according to three processes: people, strategy, and operations. Because all work ultimately entails some human interaction, effort, or involvement, Bossidy and Charan believe that the people process is the most important.

When Cara interviewed for a position as an entry-level structural engineer, she was asked to solve several engineering problems by hand. This is an example of a(n) Multiple Choice capability test. performance test. ability test. personality test. aptitude test.

performance test.

A technological innovation that improves the performance and speed of a computer's operating system would be considered a(n) ______ innovation. Multiple Choice transformational product adaptive personnel process

product Explanation A product innovation is a change in the appearance or the performance of a product or a service or the creation of a new one. The improvement to the computer's operating system is a product innovation.

In a SWOT analysis, organizational strengths are environmental factors that the organization may exploit for competitive advantage. MBO skills that should be emphasized. external opportunities that a company can take advantage of. skills and capabilities that give a company advantages in executing its strategies. means that give a specific industry an advantage in a down economy.

skills and capabilities that give a company advantages in executing its strategies. Explanation Organizational strengths are the skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission.

Managers at Lucky Peach magazine are in the process of cross training entry-level employees to be able to take phone orders or answer customer questions, and to process orders in overflow situations. The company is changing its technology. attitudes. people. structure. skills.

skills. Explanation The company is enhancing the skills of entry-level employees with cross training.

In the BCG matrix, _____ are companies that have high growth and high market share, and are definite keepers. turtles cash cows stars sleepers sleeping giants

stars Explanation In the BCG matrix, stars have high growth and high market share, and are definite keepers.

The point of the performance appraisal is to stimulate better job performance. avoid legal problems, especially discrimination complaints. demonstrate correct methods for work procedures. make sure that the subordinate's behavior is tightly controlled. provide a paper trail of manager-employee interactions.

stimulate better job performance. Explanation The whole point of performance appraisal is to stimulate better job performance.

Appliance America's customer complaints have increased because its drivers often get lost when attempting deliveries, which means that the deliveries arrived late. The drivers have resisted using GPS systems, claiming they know their territories. But managers are now encouraging them to look for the best solution to the increased level of customer complaints. Appliance America is in the ________ stage of Lewin's change model. learning unfreezing evaluation changing refreezing

unfreezing Explanation In the unfreezing stage, managers try to instill in employees the motivation to change, encouraging them to let go of attitudes and behaviors that are resistant to innovation.

A(n) ______________ is susceptible to legal attack because some questions may infringe on non-job-related matters such as privacy, diversity, or disability. performance interview situational interview unstructured interview behavioral-description interview realistic job preview

unstructured interview Explanation The unstructured interview has been criticized as being overly subjective and apt to be influenced by the biases of the interviewer. It is susceptible to legal attack because some questions may infringe on non-job-related matters such as privacy, diversity, or disability.

The Whole Foods chain of supermarkets has stated, "With great courage, integrity, and love, we embrace our responsibility to co-create a world where each of us, our communities, and our planet can flourish. All the while, celebrating the sheer love and joy of food." This proclamation is Whole Foods' mission statement. company tagline. values statement. vision statement. corporate slogan.

values statement. Explanation A values statement, also called a core values statement, answers the question, "What values do we want to emphasize?" It expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world.

Rob came home complaining to his wife that he wished he knew what he was supposed to be doing every day. His wife was surprised by that remark as Rob worked for a very large consumer goods firm in its manufacturing department. On further questioning, he disclosed the firm had recently switched its structure and now in addition to reporting to the VP of manufacturing he also had a boss in R & D as well. He found this situation quite confusing as sometimes the two bosses gave him projects that seemed to be in conflict with one another. Rob is likely working for a company that is now using which type of organizational structure? A. functional B. geographic C. multidivisional D. matrix E. horizontal

D. matrix

Which of the following is an assumption upon which the rational model of decision making rests? Decision makers are unable to process all of the available information. Decision makers typically have emotional blind spots. Decision makers can logically evaluate the alternatives. Consequences of any actions cannot be known. A decision maker will choose the option that is most ethical.

Decision makers can logically evaluate the alternatives. Explanation The rational model makes some highly desirable assumptions: that managers have complete information, are able to make an unemotional, logical analysis, and are able to make the best decision for the organization (see Table 7.1).

Based on the five forces model, the _______ that companies compete against one another for customers, the _________ the level of profits is likely to be for that industry. A. more; equal B. less; lower C. more; higher D. less; equal E. more; lower

E. more; lower

Which of the following steps in the strategic management process is the source of its feedback loop? A.Carry out the strategic plan B.Establish the grand strategy C.Establish the mission and vision D.Formulate the strategic plans E.Maintain strategic control.

E.Maintain strategic control.

Arizona Pottery is having a difficult time finding inexpensive labor, which it attributes to an unfriendly climate toward Hispanics since the passage of tough illegal immigration legislation in the state. This is an example of a(n) _________ force for change. A.Economic B.Technological C.Market D.Employee E.Social or Political

E.Social or Political

Which of the following is true of external recruiting, compared to internal recruiting? A.It encourages greater employee loyalty B.The process is cheaper C.The pool of talent is more limited D.It creates the need for multiple recruitments E.The process takes longer.

E.The process takes longer.

Oil Companies must be aware of other firms' development of ethanol products since this is an example of which one force in Porter's model for industry analysis? A.Bargaining power of buyers B.Rivalry among competitors C.Bargaining power of suppliers D.Threats of new entrants E.Threats of substitute products.

E.Threats of substitute products.

Mark Zuckerberg stated that Facebook's early idea was to "Move fast and break things." He set that as his strategy for the company. Was he using the concept of strategy correctly? Yes, because it provided a vision for this new endeavor for others to share. Yes, because he involved managers from all parts of the organization. No, because a strategy sets a long-term goal and direction for an organization. Yes, because mission statements are a part of strategic plans and this was a clear, concise mission. No, because this was a short-term goal and provided the initial slogan for the company.

No, because a strategy sets a long-term goal and direction for an organization.

An organization's _______ expresses the need the firm will fill, the operations of the business, its components and functions, and the expected revenues and expenses. code of business mentoring plan business model risk statement code of ethics

business model Explanation The business model outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses.

Daniel is assessing his company's portfolio of products. One of them is the best-selling brand of mayonnaise, although this is now a slow-growing market. If Daniel uses the BCG matrix, he would classify this product as a cash cow. cloud. star. question mark. dog.

cash cow.

George, a chef and owner of L'Auberge, a popular restaurant, is always visiting his competitors to observe how they are doing things in their restaurants. He told one of his managers, "I eat dinner at a lot of restaurants because I want to know what is going on. I am always concerned that one of our competitors will surprise us with a new service or menu item, like ours but better." In which activity is George engaging? TQM management by observation competitive intelligence environmental scanning corporate spying

competitive intelligence Explanation Practicing competitive intelligence means gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately.

Karl is very creative and prefers to look at the long-term issues when making a decision. He considers a wide variety of possible actions based on an open mind about the possibilities. Sometimes his coworkers find him indecisive because of these tendencies. Karl is probably ______ in his decision-making style. relaxed analytical behavioral directive conceptual

conceptual Explanation Conceptual types adopt a long-term perspective and rely on intuition and discussions with others to acquire information. They also are willing to take risks and are good at finding creative solutions to problems. A conceptual style can foster an indecisive approach to decision making.

John, the owner of a lawn care service, likes to meet with his employees six months after their yearly evaluation to discuss how they are progressing on suggestions on and plans to improve their yearly job evaluation. At this point, by comparing the six-month results with the past evaluation, John is in the ______ steps of the planning/control cycle. Multiple Choice termination planning organizing control observation

control Explanation Controlling the direction includes the corrective action in the fourth step of the cycle, which (a) can get a project back on track before it's too late by correcting deviations or (b) if it's too late, can provide data for improving future plans. In this case, at the end of the performance period, the information can be used to improve future plans.

Symbols, stories, heroes, and rites and rituals are ways in which ____ is (are) most often transmitted to employees. Multiple Choice goals objectives plans ethics culture

culture Explanation Culture is transmitted to employees in several ways, most often through such devices as symbols, stories, heroes, and rites and rituals.

Salvador, who works as a waiter in a top restaurant in Manhattan, likes the fast pace of his work and the fact that things are always changing there. Salvador can be said to Multiple Choice have a high task orientation. have a high tolerance for ambiguity. have a large need for structure. rank high on the stress index. have a low tolerance for ambiguity.

have a high tolerance for ambiguity. Explanation Some people desire a lot of structure in their lives (a low tolerance for ambiguity) and find ambiguous situations stressful and psychologically uncomfortable. In contrast, others do not have a high need for structure and can thrive in uncertain situations (a high tolerance for ambiguity, like Salvador).

Jerome's accounts payable department is behind schedule as the month-end close is approaching. This has been happening every month, but he hasn't found time to provide additional training. Instead he asks all of his employees to work eight hours of overtime that week and reassigns some tasks. This is an example of using the ________ model. Multiple Choice predictive coalition rational intuition incremental

incremental Explanation In the incremental decision-making model, managers take small, short-term steps to alleviate a problem, rather than steps that will accomplish a long-term solution.

Great Plains Credit Union has decided that tellers must rotate through a new weekend shift on Saturday afternoons since several of its competitors in the area have recently begun to offer these hours to customers. This is a(n) ______ change. reactive adaptive innovative radically innovative proactive

innovative

When a grocery store chain adopts a new practice of its competitors by staying open 24 hours a day, requiring employees to work flexible schedules, it is implementing a(n) ______ change. Multiple Choice innovative adaptive process radically innovative impermanent

innovative

Sparkling Clean, Inc. is considering implementing a system that will pay its cleaning workers based on the number of completed residential jobs, coupled with satisfactory ratings on random inspections to ensure quality. This system is new to the organization, and it is an example of __________ change. highly complex familiar innovative adaptive radically innovative

innovative Explanation Innovative change is the introduction of a practice that is new to the organization. This form of change involves moderate complexity, cost, and uncertainty. It is therefore apt to trigger some fear and resistance among employees.

Susan had been working as an executive assistant to the president for nearly 20 years, so when she retired no one had a good idea of all that her job entailed. Before she left, Ben sat with her for two weeks to observe her duties and ask her the details of all functions. Ben was performing a job analysis. informal appraisal. behavioral-description interview. job rotation. performance appraisal.

job analysis.

Michele had been working as an executive assistant to the president for nearly 25 years, so when she retired, no one had a good idea of all that her job entailed. Before Michele retired, Sharon sat with her for two weeks to observe her duties and ask her to explain all the functions she performs as executive assistant to the president. Sharon was performing a(n) informal appraisal. job rotation. behavioral-description interview. performance appraisal. job analysis.

job analysis. Explanation The purpose of a job analysis is to determine, by observation and analysis, the basic elements of a job. Specialists interview job occupants about what they do, observe the flow of work, and learn how results are accomplished.

"Who are our customers? What are our major products or services? In what geographic areas do we compete?" A good _____ will answer these questions. value pact mission statement vision statement code of ethics management belief statement

mission statement Explanation Good mission statements should answer these questions: (1) Who are our customers? (2) What are our major products or services? (3) In what geographic areas do we compete? (4) What is our basic technology? (5) What is our commitment to economic objectives? (6) What are our basic beliefs, values, aspirations, and philosophical priorities? (7) What are our major strengths and competitive advantages? (8) What are our public responsibilities, and what image do we wish to project? (9) What is our attitude toward our employees? (See Table 6.1.)

As a sales manager, Danyce is conducting performance appraisals for her team members. To do so, she tracks each person's sales calls, amount of sales, and revenues on a quarterly basis. Danyce is using a(n) ______ system of appraisal. trait behavioral subjective 360-degree objective

objective Explanation Objective appraisals, also called results appraisals, are based on facts and are often numerical. In these kinds of appraisals, you would keep track of such matters as the numbers of products the employee sold in a month or the number of sales calls each salesperson made.

The management of Quality Carpet Cleaning finalized the company's action plan for increasing its market share over the next few years. The management then set up a 12-month plan that defines how the organization will conduct its business based on the action plan, including clear sales targets for each week. The second plan is an example of a(n) _____ plan. operating dependent facilities strategic tactical

operating Explanation The operating plan, which is typically designed for a one-year period, defines how you will conduct your business based on the action plan; it identifies clear targets such as revenues, cash flow, and market share.

Time Warner has different divisions for magazines, movies, recordings, cable television, and so on. The Warner Bros. part of the empire alone has divisions spanning movies and television, a broadcast network, retail stores, theaters, amusement parks, and music. Time Warner is an example of an organization with ____ divisions. common merchandise geographic product customer

product Explanation Product divisions group activities around similar products or services.

George, a longtime hotel manager, was meeting with Sally, a new manager, and telling her about a recent decision related to whether or not to fire a front desk employee who has had customer service issues. George discussed the four stages of the decision process. He said, "I first identified the problem, and then, I gathered alternative solutions. I then evaluated each choice and selected a solution. I then implemented my decision to add training. Finally, I followed up with an evaluation of what I set in place." With this decision, George is using the ______. Multiple Choice interpersonal-decision solutions agenda employee relations model focused decision-making model rational decision-making model

rational decision-making model Explanation Typically there are four stages in rational decision making (see Figure 7.1): Stage 1: Identify the problem or opportunity; Stage 2: Think up alternative solutions; Stage 3: Evaluate alternatives and select a solution; and Stage 4: Implement and evaluate the solution chosen.

________ change is made in response to arising problems or opportunities. BP's response to an explosion on a drilling platform in the Gulf of Mexico is an example of this kind of change. Multiple Choice radical proactive incremental process reactive

reactive Explanation When managers talk about "putting out fires," they are talking about reactive change, making changes in response to problems or opportunities as they arise. This is exactly what happened with BP's response to the Gulf of Mexico oil spill.

When Jason became one of three final candidates for a managerial position with a large pharmaceutical company, the hiring manager scheduled a special meeting with him. The two talked about the stressful deadlines and heavy travel required of the position, as well as the compensation and benefits. Jason appreciated that the hiring manager took the time to provide a(n) Multiple Choice unstructured interview. performance appraisal. behavioral-description interview. situational interview. realistic job preview.

realistic job preview. Explanation A realistic job preview gives a candidate a picture of both positive and negative features of the job and the organization before he or she is hired. This recruiting technique is very effective at reducing turnover within 30-90 days of employment.

Meg hired a great candidate from UCLA who has a big career ahead, and every year since Meg insists on going on a recruiting visit to that campus. Meg is convinced that hiring from UCLA in the future will produce the same level of success. This is an example of a(n) representativeness bias. anchoring effect. professional effect. availability bias. heuristic bias.

representativeness bias Explanation Representativeness bias is the tendency to generalize from a small sample or a single event. The bias here is that just because something happens once, that doesn't mean it is representative, or that it will happen again or will happen to you.

Cimarron Saddlery expects to improve profitability of the organization by 15% over the next three years. This is an example of a(n) strategic goal. maintenance objective. operational goal. tactical goal. supervision objective.

strategic goal. Explanation Strategic goals are set by and for top management and focus on objectives for the organization as a whole.

Dave owns several computer repair shops across the Midwest, and he has set a goal for his company of cutting costs in all his locations over the next three years. Dave has set a(n) tactical goal. strategic goal. business plan. operational goal. management guideline.

strategic goal. Explanation Strategic goals are set by and for top management and focus on objectives for the organization as a whole.

Many customers shop at Organic Foods because of the employees' extensive product knowledge. In a SWOT analysis, the employees' high levels of product knowledge are an example of the company's opportunities. threats. intelligence. weaknesses. strengths.

strengths. Explanation Strengths are inside matters; they are the skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its vision. Strengths could be work processes, organization, culture, staff, product quality, production capacity, image, financial resources and requirements, service levels, and other internal matters.

In the Internet Age, retailers like Amazon and Apple are not constrained by physical shelf space and can offer consumers a much wider variety of products; yet small sales, one or two rather than millions of items at a time, can produce big profits. This development is an example of the marketplace becoming more segmented and moving toward more niche products. China becoming the second-largest economic power. instant-gratification shopping. the rise of business-to-business technology. declining population in developed countries.

the marketplace becoming more segmented and moving toward more niche products. Explanation In the Internet age, retailers like Amazon and Apple are not constrained by physical shelf space and can offer consumers a much wider variety of products; yet small sales, one or two rather than millions of items at a time, can produce big profits. This is an example of the market place becoming more segmented and moving toward niche products.

A small firm is likely to benefit significantly from strategic planning Multiple Choice when it is in a very new industry. when it has a very small market. regardless of the nature of its industry or market. when it is in a very competitive industry. when it is in a very stable industry.

when it is in a very competitive industry.

Porter's competitive strategies of cost-leadership and differentiation focus on ____ markets, while the cost-focus and focused-differentiation strategies focus on ____ markets. specific; broad diverse; narrow growth; specific wide; narrow narrow; wide

wide; narrow Explanation Porter's four competitive strategies (also called four generic strategies) are (1) cost-leadership (wide markets), (2) differentiation (wide markets), (3) cost-focus (narrow markets), and (4) focused-differentiation (narrow markets).

Which of the following is not a way to encourage and foster innovation? getting commitment from top managers withholding raises and promotions when innovation attempts don't work out obtaining the necessary human resources creating an innovation strategy supporting innovation with investments of time and money

withholding raises and promotions when innovation attempts don't work out Explanation Innovation is more likely to occur when organizations have the proper culture, resources, and reward systems to support it. People should not be punished when their attempts to innovate don't work out; if they are punished, they won't attempt new projects in the future.