MGMT EXAM 2
Three levels of organizational culture
- Artifacts - Beliefs and values - assumptions
The Equal Employment Opportunity Commission ("EEOC") filed suit against BMW alleging its use of criminal background checks is discriminatory in violation of Title VII of the Civil Rights Act. What was the EEOC's theory of discrimination in lawsuit against BMW (could be more than one correct answer)?
- Disparate impact discrimination - Adverse impact discrimination
according to the text, these are the four determinants of culture
- Formal organization - people - leader - task requirements
Name any of the ways in which organizational culture develops, according to the text
- Founders - Organizational leaders - Teams - cultural socialization
Same scenario. I apply to be a food server at a new Hooters restaurant opening in Athens. Since its inception, Hooters restaurants have hired only female servers. Moreover, consistent with the company's marketing theme, the servers wear short nylon shorts and cutoff T-shirts that show their midriffs. For these reasons, and because I am male, the restaurant does not hire me. Which of the following statements is true (could be more than one)?
- I have a potential claim under Title VII of the Civil Rights Act of 1964 (as amended) because Hooters arguably has discriminated against me based on a protected characteristic under the Title VII. - My potential claim is for disparate treatment discrimination.
I apply to work at Abercrombie & Fitch, which historically has hired employees primarily based on whether they have or represent "The Look" that A&F wishes to portray in its clothing, employees and clientele. Because A&F targets exclusively young, cool, hip customers, A&F refuses to hire me based upon my age, though I am otherwise qualified. Which of the following statements is true?
- I have a potential claim under the Age Discrimination in Employment Act because A&F arguably has discriminated against me based on a protected characteristic under the ADEA - My potential claim is for disparate treatment discrimination.
The two basic ways in which an employer can determine employee compensation, one of which is embraced by Reed Hastings at Netflix, and one of which is not
- Job-based pay -Skill-based pay (Netflix supports skill)
Describe the predominant form of change at Microsoft under Steve Ballmer.
- Planned - unclear/both (planned and organic)
A company can be organized based on:
- Products - Small, medium and large clients - Northeast, Southeast, Northwest, Pacific, Midwest - USA and International
Name the two essential considerations in any company's management of human capital
- Stage of Growth - Strategic Objectives
A system in which employees conduct a self-assessment of key competencies and then compare their responses to others in the organization including manager, peers, direct reports, and clients.
360-degree feedback
Which of the following refers to the "Great Man" theory?
A theory of leadership that explained leadership by examining the traits and characteristics of renowned leaders of human history.
Which of the following statements refers to House's path goal theory?
A theory that states that the most important aspect in leadership is the follower's expectation that a task can be accomplished and that it will lead to rewards.
Rowling Company is monitoring the amount customers spend on its products relative to all other products. Rowling is focused on which of the following customer metrics?
Account share
The accounting system used to assess the specific cost components of producing a product or service
Activity-based costing(ABC)
Creates a forum for creativity and innovation
Advantage of ambidextrous organizations
Maintain efficiency in current strategic operations while preparing for imminent changes Create a separate team to work on future opportunities while the rest of the firm focuses on the primary business
Ambidextrous Organizations
The name given in Ch.7 to an organization with the flexibility to simultaneously maintain efficiency in current strategic operations, and also anticipate and prepare for imminent changes in the firm's environment (anticipate and prepare for potential disruptive innovations, etc.)
Ambidextrous organization
Applying the Levels of Organizational Culture, Terry College's Business Learning Community is an example of _ .
Artifacts
Visible organizational structures, processes, and languages
Artifacts
Which of the following levels of organizational culture refers to the visible organizational structures, process, and languages?
Artifacts
Can lead to better levels of performance, higher financial metrics and distinctive competitive advantage. Promotes ethical guidelines that define acceptable and unacceptable behavior. Clarifies roles by being explicit about what is expected in an organization
Aspects of a strong culture
A behavior that stemmed from a belief held by a group that is no longer visible, but has become deeply embedded in the organization.
Assumption
Applying the Levels of Organizational Culture, the idea that you are respectful and even deferential to your professors when in class or on campus, and that you clap for people who make presentations in class, would be best characterized as an example of _ .
Assumptions
Behavior derived from a belief held by a group that is no longer visible, but has become deeply embedded in the organization
Assumptions (Farthest below the surface)
Juan is an employee at a company where the CEO is pushing for a drastic change in processes. Juan just finished creating computer programming that streamlined the old processes, for which he was expecting a raise and promotion. The proposed new changes make all of his recent work null and void. Juan is resisting change. The change leader needs to
Assure employees that they will get credit for past achievements
Ask applicants about their work experience, education, and other qualifications ("Tell me about the training you received at . . .").
Background questions
A method created to help businesses translate strategy into action by identifying the most critical measures to drive business success and linking long-term strategic goals with short-term operational actions
Balanced Scorecard
The was created to help businesses translate strategy into action by identifying the most critical measures to drive business success and linking long-term strategic goals with short-term operational actions.
Balanced scorecard
Which of the following statements about the balanced scorecard is true?
Balanced scorecard can be adapted to align with unique company goals.
The actions and decisions of individual employees
Behavior
Ask applicants what they did in previous jobs that were similar to the job for which they are applying ("In your previous jobs, tell me about . . ."). These questions are more appropriate for hiring experienced individuals.
Behavioral questions
Those who support a more open organizational structure where roles and responsibilities are loosely defined.
Behaviorists
Applying the Levels of Organizational Culture, the sayings and statements written on the wall in the stairwells of Terry College's Business Learning Community are an example of _ .
Beliefs and Values
The meanings that members of an organization attach to artifacts
Beliefs and Values
Meanings that members of an organization attach to artifacts
Beliefs and values (below the surface)
The management of Z-Cosmetics, after identifying key measurements, decided to set performance targets for its business. In order to fulfill the purpose, it adopted a process which required the management to collect data from Color Cosmetics, a leading manufacturer in the industry. The managers of Z-Cosmetics believed that adopting the best practices across the industry would help them achieve their goals more effectively. Identify the process used by Z-Cosmetics to set performance targets.
Benchmarking
The process of collecting data from the industry's best players and using their numbers as a goal or guideline for evaluating company performance
Benchmarking
1. Reveals best practices so that they can be analyzed, adopted, and implemented throughout industry 2. Stimulates an unbiased review of internal operations 3. Reveals problems for which others have found solutions 4. Provides objective data and targets for improvement
Benefits of Benchmarking
Extensive surveys that ask applicants questions about their personal backgrounds and life experiences.
Biographical data (biodata)
An employment qualification or criteria that is "reasonably necessary to the normal operation of that particular business."
Bona Fide Occupational Qualification (BFOQ)
Same scenario. I apply to be a food server at a new Hooters restaurant opening in Athens. Since its inception, Hooters restaurants have hired only female servers. Moreover, consistent with the company's marketing theme, the servers wear short nylon shorts and cutoff T-shirts that show their midriffs. For these reasons, and because I am male, the restaurant does not hire me. If I file suit alleging illegal discrimination under title VII, what defense is Hooter's like to assert? I apply to be a server at a new Hooters restaurant in Athens. Since its inception, Hooters has hired only female servers. Moreover, consistent with the company's marketing theme, the servers wear short nylon shorts and cutoff T-shirts that show their midriffs. For these reasons, the restaurant does not hire me--I am male and there is some thought that customers do wish to see me in hot shorts. Do you think I should prevail on my claim of discrimination against Hooters under Title VII of the Civil Rights Act?
Bona Fide Occupational Qualification (BFOQ)
What would BMW likely argue in defending the EEOC's discrimination lawsuit based on BMW's the use of criminal background checks?
Bona Fide Occupational Qualification (BFOQ)
The process for allocating financial resources and measuring expected quantitative and qualitative outcomes of a firm.
Budgeting Process
The most extreme form of mechanistic organization in which, (i) systems are highly formalized and are characterized by extensive rules, procedures, policies, and instruction; and (ii) superiors closely supervise subordinates
Bureaucracy, Bureaucracy Approach
An extreme form of organizational control in which systems are highly formalized and are characterized by extensive rules, procedures, policies, and institutions.
Bureaucratic Approach
This organizational design is efficient, can withstand high turnover, and provides focus for diverse workforce, but it is not well-suited to dynamic environments requiring creativity and innovation
Bureaucratic Approach
Focuses on measurements that will improve a company's ability to serve and deliver value propositions to its customers.
Business Process Perspective
An arrangement that allows employees to make their own choices about benefit options
Cafeteria Plans
A set of quantitative and qualitative measurements that are related and mutually reinforcing
Cause-effect Relationships
Fine Gadgets, a gadgets manufacturing company, has an organizational structure where the employees have to strictly follow rules and regulations stated by the management. Moreover, only the top management is allowed to make key decisions regarding organizational activities. Fine Gadgets is an example of _________ organization.
Centralized
An organizational structure characterized by formal structures that control employee behavior by concentrating decisions in a top-down, hierarchical fashion.
Centralized Organization
D x M x P > Rc + Cc D = Dissatisfaction with the status quo M = A new model for the organization P = Process for change Rc = Resistance to Change Cc = Cost of Change that employees experience
Change Process
Process required when strategy and capabilities are out of alignment with new competitive realities
Change management
Desirable Feasible Relevant
Characteristics of Effective Models
Harry, a firm's marketing head, had certain characteristics that made him gain his team's loyalty. Moreover, he can elicit performance beyond expectations from his team members. He has the ability to motivate his team members through strong communication skills. From this description, it can be inferred that Harry is a.
Charismatic.
A type of organizational control that includes self-supervising teams that are responsible for a set of tasks.
Clan Approach
Measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude. In other words, these tests indicate how quickly and how well people understand words, numbers, logic, and spatial dimensions.
Cognitive ability tests
Not a crisis High need for commitment to engage in change Change is not clear Change is complex Leadership needs support of key constituents
Collaborative Change Process
The process for implementing changes that is best suited to situations not involving a crisis, commitment to engage in change is needed, change is unclear and complex, and support of key stakeholders is critical to effective change
Collaborative Process
The process by which union representatives negotiate with the management of a firm to secure certain concessions on wages, benefits, job security or seniority for union members.
Collective Bargaining
Commitment to the firm based on firm exchange, such as pay for services
Compliance
The name given to the least desirable form of organizational commitment in which the employee's commitment to the firm is based on a fair exchange of compensation for services rendered
Compliance
Failure to achieve organizational goals Restatement of earnings Replacement of senior management Drop in stock prices Shareholder lawsuits
Consequences of control loss
Achieved when behavior and work procedures conform to standards and goals are accomplished
Control
The four stage process that provides the mechanisms and systems to monitor the transformation process, ensuring that outputs are produced to the desired quality, and specifications of an organization and its customers.
Control Cycle
Occurs when behavior and work procedures do not conform to standards
Control Loss
Third Stage of Growth: formalized control measurements and goals, routine performance appraisals, more formal control mechanisms, more well-defined job roles and functions
Controlled Growth
In seeking to change Microsoft's mission, core strategy and organizational structure, what is Nadella really trying to alter at Microsoft?
Corporate culture
HR practices should focus on cost effectively increasing productivity
Cost leadership strategy
In a company meeting, Peter, the CEO, is pointing to disappointing sales results and to the ways competitors in the industry are gaining competitive advantages. Peter is in which of the following stages of the change process?
Creating dissatisfaction
Which of the following is the first step involved in the change process?
Creating dissatisfaction
Stories, legends, myths, and parables are an example of this form of indoctrination
Cultural Socialization
The way individuals in an organization uniquely and collectively think, feel, and act.
Culture
Linking key customer-based metrics such as market share and retention to the financial performance of a firm
Customer Perspective
The perspective of the Balanced Scorecard that, links key customer-based metrics (KPIs) such as market share and retention to the financial performance of a firm
Customer Perspective of the Balanced Scorecard (NEED TO KNOW DIFFERENCE B/W CUSTOMER AND LEARNING GROWTH PERSPECTIVE)
Downing Company is studying the costs required to attract new customers compared to the lifetime profitability of certain types of customers before it decides which new customers to target. Downing is focused on which of the following customer metrics?
Customer profitability
Identify each of the five elements of the change management process equation, and explain what the equation means (key relationship among the elements)
D X M X P -> Rc + Cc
Define, Measure, Analyze, Improve, and Control
DMAIC
An organizational structure where key decisions are made at all levels of the firm, not mandated from the top.
Decentralized Organization
With respect to decision rights, the organizational structure in which key decisions are made at all levels of the firm, and are not mandated from the top
Decentralized organization (NEED TO KNOW CENTRALIZED VS DECENTRALIZED ORG)
Rights that include initiating, approving, implementing, and controlling various types of strategic or tactical decisions.
Decision Rights
Which of the following is an advantage of realistic job previews?
Decrease turnover in many organizations
The process by which managers transfer decision rights to individual employees
Delegation
The process by which managers transfer decision rights to individual employees.
Delegation
To motivate change, managers should create effective models that are
Desirable, feasible, and relevant.
People Formal organization Task requirements Leader
Determinants of culture
Of the five activities that make a firm customer-centric connections involves
Developing relationships with external partners to deliver greater value to customers.
A longer-term, ongoing process of training that improves an employee's personal abilities over time
Development
HR practices should include constant feedback system, moderate collaboration across functions, and employee participation in decision making
Differentiation strategy
An employer's practice results in fewer minorities being included in the outcome of testing, hiring, or promotion practices than would be expected by numerical proportion.
Disparate (adverse) impact
Intentionally using race, color, religion, sex, or national origin as a basis for treating people differently.
Disparate (unequal) treatment
An employment test or requirement that is neutral on its face, but results in a rate of selection of applicants within a protected group or class that is less than 80% (four-fifths) of what the rate should have been when compared to the majority group
Disparate impact discrimination
Based on the last question in which you are administering a battery of personality, integrity, intelligence and aptitude tests, and which possibly are resulting in a relatively high rejection rate of applicants within a protected class (e.g., race, gender, national origin). What type of claim for illegal discrimination should you be concerned about?
Disparate impact discrimination
Intentionally using race, color, religion, sex, national origin or any other protected characteristic as a basis for making an employment decision
Disparate treatment discrimination
Innovative forces that include a different set of attributes than those valued by mainstream customers
Disruptive Technologies
A component of the change process in which creating dissatisfaction with the status quo helps to free people and organizations from complacency or inertia. Often creates the spark needed to begin the change process
Dissatisfaction
Perhaps the most important component of the change process, in which unhappiness with the status quo becomes the spark that helps to free people and organizations from complacency or inertia
Dissatisfaction
Which of the following helps change leaders build dissatisfaction?
Disseminating a benchmarking or internal and external performance/opportunity gap analysis
The manner in which work in a firm is divided among employees
Division of Labor
When a company organizes around any of the criteria in the preceding question--products, customers, or geography--what form of organizational structure has the company adopted?
Divisional
A structure that groups diverse functions into separate divisions.
Divisional Structure
Resource efficiency: Poor Responsiveness: Moderate Adaptability: Good Accountability: Excellent Best in which environment: Heterogeneous
Divisional Structure
Organizational structure in which a firm is organized around products, geographies, or clients, with each unit accountable for its own profit and loss
Divisional structure
"In August 2013, a few months before announcing that he would step down from the CEO's chair, Ballmer began a reorganization that would align much of Microsoft's staff by job function — sales, marketing, finance, engineering and so on — rather than in silos organized by specific product. Under the old model, groups such as Windows had their own marketing and financial staff. Leaders could fall into the trap of evaluating projects based on their potential benefit for the group, rather than whether they made sense for the entire company." Microsoft thus changed from a to organizational structure.
Divisional to Functional
A process designed to reduce inefficiency and waste that build ups in an organization over time in an effort to be more competitive
Downsizing
Measurements of the balanced scorecard that predict future success
Drivers
Who do you believe prevailed in the EEOC's lawsuit against BMW over the use of criminal background checks in the hiring process?
EEOC
Which of the following statements is true about the financial perspective of a balanced scorecard?
Economic value added refers to the value a company provides to its shareholders.
Which of the following statements about 360-degree feedback is true?
Employees receive feedback from their superiors, peers, and subordinates.
Which of the following helps change leaders build dissatisfaction?
Engaging in benchmarking or internal and external performance/opportunity gap analyses.
The process of matching a firm's structure, systems, HR, and management practices to the competitive landscape.
External Fit
How environmental changes impact a firm's strategy.
External Integration
Finding qualified applicants outside the firm
External Recruiting of Talent
A functional organizational structure is excellent for businesses that need to be responsive and adaptive to a dynamic business environment.
False
Dean Ayers, who was the Department Chair of the Accounting Dept. before he became Dean of Terry College, is an example of external recruiting, the advantages of which are that (i) the new hire already knowis company culture, background, and products; (ii) the new hire can make a quicker and more meaningful impact in the new role; (iii) demonstrates to other employees a potential career path that allows growth and development; and (iv) the firm already is aware of the skills and potential of the candidate when making the hiring decision.
False
It would not be surprising to find a fully-developed and strategically-integrated HR program at a company in Growth Stage I.
False
The 360-degree feedback process is the appropriate tool for firms to make decisions on employment working conditions--promotions, terminations, raises, etc.
False
The clan approach would work for a company like Delta Airlines.
False
The more mechanistic and beauracratic an organization is, the more likely it is to employ delegation of decision-making rights.
False
True/False. ISO 9000 is a program that focuses on improving the firm's products but not the processes involved.
False
True/False. Leaders must not allow employees affected by change to vent their frustrations or concerns.
False
True/False. Organizations that focus on both sustainable and disruptive technologies often make bad decisions concerning disruptive innovations.
False
True/False. Over time, the process of cultural socialization can result in a decrease level of employee commitment to an organization.
False
True/False. The functional integration stage of organizational growth is characterized by informal management.
False
True/False. The key advantage of the matrix structure is that it creates clarity for managers who are simultaneously accountable to distinct units that don't always share the same objectives.
False
________ analysis is the process of tracking the results of one's own key actions and decisions.
Feedback
Cardinal Company is using cost of goods sold as a measurement of performance. It will be placed under which of the following perspectives of the balanced scorecard?
Financial Perspective
Choosing the financial measurements that are most important for reaching strategic goals
Financial Perspective
HR practices should allow for greater autonomy and room for experimentation and ample opportunities for development and training
Focused innovation strategy
Of the five stages of organizational growth, strategic integration involves
Focusing on flexibility, adaptability, and integration across business functions.
Financial Customer Business Process Learning and Growth
Four perspectives of a balanced scorecard
If a member of a minority group does not have a success rate at least 80 percent that of the majority group, the practice may be considered to have an adverse impact.
Four-fifths (80%) rule
What is the ultimate goal of total quality management?
Fulfilling customer needs
...is best suited for situations that require efficiency of production or functional expertise
Function structure
The Tidwell Company has a production department, a marketing department, a sale department, and an accounting department. The sales department is headed by the VP of sales and manages the department in a hierarchical manner. Employees are evaluated on achieving departmental goals. The Tidwell Company has a _______ structure.
Functional
Second Stage of Growth: responding to business needs in compensation and benefits, add training and development programs, recruit specialists
Functional Growth
long-range planning; generate interdisciplinary programs, succession planning, more formal planning and hiring cycles
Functional Integration
A structure that organizes a firm in terms of the main activities that need to be performed, such as production, marketing, sales, and accounting.
Functional Structure
Resource efficiency: Excellent Responsiveness: Poor Adaptability: Poor Accountability: Good Best in which environment: Stable
Functional Structure
A team-based compensation structure that rewards teams based on the achievement of certain metrics associated with productivity, efficiency, or quality
Gain-sharing
I apply to be a server at a new Hooters restaurant in Athens. Since its inception, Hooters has hired only female servers. Moreover, consistent with the company's marketing theme, the servers wear short nylon shorts and cutoff T-shirts that show their midriffs. For these reasons, the restaurant does not hire me--I am male and there is some thought that customers do wish to see me in hot shorts. Assume I bring a claim for illegal discrimination against Hooters under Title VII of the Civil Rights Act, what protected class am I a member of?
Gender
Which of the following statements about globalization is true?
Globalization has led to a host of new competitors on the global stage.
Defining objectives or targets for individual or firm performance
Goal setting
The stage at the beginning of the business cycle that is marked by high investment activity
Growth Stage
Applying Figure 7.7: Role of Leadership across Life-Cycle Stages, Apple would best be described as being in the Life-Cycle Stage, while HP would be described as being in the Life-Cycle Stage.
Growth; Decline
The end of a business lifecycle, where a company attempts to extract as much money as possible from business activity
Harvest Stage
Thomas, a top-executive of an organization, is responsible for managing the transformational change process that the organization is about to undergo soon. Which of the following should Thomas do in order to combat the employees' resistance to change and to create a sustainable change?
He should engage employees in the change process.
This approach to division of labor allows employees to develop expertise or competency in a certain skill or function, and allows quick and efficient training of new hires. It's disadvantages are that it leads to tedious, competitive work that can lead to low job satisfaction and high turnover
Highly-Specialized jobs, high degree of division of labor
The Breadth of activities that are performed in a certain job.
Horizontal Specialization
occurs when unwelcome and demeaning sexually related behavior creates an intimidating, hostile, and offensive work environment.
Hostile work environment
An international control mechanism that pursues high-quality products by ensuring high-quality production processes
ISO 9000
Commitment to the firm based on a sense of belonging
Identification
When Barcelona Restaurant Group chose prime cost, REVpash, and customer satisfaction scores on its secret shopper reports as metrics to follow, Barcelona was engaged in which phase of the Control Cycle?
Identify measures
Which of the following is the first step involved in benchmarking?
Identifying the processes to benchmark
Which of the following the first step involved in benchmarking?
Identifying the processes to benchmark
A simple and effective way of analyzing cause-effect relationships
If-then Statements
Which of the following is a benefit of task-oriented leadership style?
Improved performance.
Inertia refers to the.
Inability of organizations to change as rapidly as the environment.
Describe the predominant form of change at Blockbuster in response to Netflix.
Incremental
Describe the predominant form of change at Microsoft under Steve Ballmer
Incremental
A process in which small improvements or changes are made to processes and approaches on an ongoing basis
Incremental Change
The kind of change illustrated by Blockbuster's addition of an online movie rental service only as a relatively small, minor adjustment to its business strategy
Incremental change
The inability of Microsoft and Blockbuster to move beyond their existing competitive advantage and change as rapidly as the environment
Inertia
The inability of organizations to change as rapidly as the environment
Inertia
Which of the following statements is true about the different types of training?
Informal training of employees includes coaching or mentorship.
First Stage of Growth: loose, informal management, basic salary and benefits, flexible job definitions
Initiation
According to the text, these two dimensions of "values" determine whether an organization has a strong culture
Intensity of values and agreement about values
Systems that promote communication between the strategists and those implementing the strategy, ensuring that performance is constantly monitored and that business stays on course
Interactive Control System
A process of building and aligning HR practices in support of the company's strategy
Internal Fit
How work is accomplished in a firm
Internal Integration
finding qualified applicants from workers who already work at the firm
Internal Recruiting of Talent
Commitment to the firm based on an alignment between the firm's values and the individual's values.
Internalization
Which of the following is the most valuable benefit of the balanced scorecard?
Its facilitation of communication about strategy throughout an organization
Steve, the marketing lead in an organization, treats each of his team members differently and maintains unique relationships with them. Jerry and Henry are members of his team. He assigns more interesting tasks to Jerry and offers him more rewards. On the other hand, Henry is simply required to comply by formal rules and receives the standard benefits of the job. From this scenario it can be inferred that.
Jerry belongs to Steve's in-group.
Analyzing information about specific job tasks in order to provide a more precise job description and define the characteristics of the ideal candidate for the position
Job Analysis
_ is the process of analyzing information about specific job tasks in order to provide a more precise job description and define the characteristics of the ideal candidate for the position
Job Analysis
Target hires and trains employees well in advance of actual openings and has managers groom one or two direct reports for management positions. Successful HR planning like the approach used at Target requires
Job analysis
The process of analyzing information about specific job tasks in order to provide a more precise job description and define the characteristics of the ideal candidate for the position
Job analysis
Pay that is determined by the nature of a particular job
Job-based Pay
Ask applicants to demonstrate their job knowledge (e.g., nurses might be asked, "Give me an example of a time when one of your patients had a severe reaction to a medication. How did you handle it?").
Job-knowledge questions
A measurable value, or metric, that demonstrates how effectively a company is achieving KEY business objectives
Key Performance Indicator (KPI)
Identifies the infrastructure and skills needed to carry out business processes, interact with customers, and achieve long-term financial growth; it also helps to identify gaps in capabilities or resources
Learning and Growth Perspective
The perspective of the Balanced Scorecard that, 1. Fosters an environment conducive to learning 2. Identifies infrastructure and skills needed to (i) carry out business processes, (ii) interact with customers, and (iii) achieve long-term financial growth 3. identifies gaps in capabilities or resources
Learning and growth perspective
Artifacts Beliefs and values Assumption
Levels of an organization's culture
The process of managing employees by outlining a series of specific objectives or milestones that they are expected to meed in a defined time period
Management by Objectives
Eris Company is managing employees by outlining a series of specific milestones that they are expected to meet in a defined time period. Eris is utilizing
Management by objectives
When a company organizes around both its primary functions and its products, what form of organizational structure has the company adopted?
Matrix
A structure where both divisional and functional managers have equal authority in the organization
Matrix Structure
Resource efficiency: Moderate Responsiveness: Good Adaptability: Moderate Accountability: Poor Best in which environment: Complex
Matrix Structure
Which of the following terms refers to a structure where many employees have two bosses (one divisional and one functional) with equal authority in the organization?
Matrix Structure
When Barcelona Restaurant Group hires a company to conduct secret shopper surveys in which a number is placed on overall customer satisfaction and experience in the restaurant, Barcelona is engaged in which phase of the Control Cycle?
Measure results
The process of evaluating behaviors and outputs to see whether standards have been met or objectives have been obtained
Measurement, measuring results
This kind of company is characterized by: (I) a high degree of job standardization and job specialization; (ii) specific definitions of roles and responsibilities; (iii) more hierarchical leadership with clear lines of authority; (iv) information communicated in a hierarchical manner from superior to employee; and (v) encouragement of employees to develop job-specific knowledge within their narrow area of specialization
Mechanistic Organization, Bureaucracy
The membership that is required to have a claim of employment discrimination under Title VII or the other major federal employment laws
Membership in a protected class based on a protected characteristic
Organizational culture is particularly important in this crucial moment of corporate-level strategy
Mergers and acquisitions, challenges in merging two corporate cultures
The process by which firms import the nature of their overarching industrial environment and adopt their organization in response to evolving contextual factors.
Mutual Adaptation
....is important to industries where change is a constant, such as technology and fashion
Mutual adaptation
A process by which an organization outlines what type of training needs to be done and who is best positioned to deliver it.
Needs Assessment
In a ________ structure, "knowledge workers" are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization.
Network
A structure where "Knowledge Workers" are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization.
Network Structure
Resource efficiency: Good Responsiveness: Excellent Adaptability: Excellent Accountability: Moderate Best in which environment: Volatile
Network Structure
This organizational structure harnesses technology to remain flexible and informational; is highly adaptable and responsive; and is best suited for volatile environments
Network Structure
Outsourcing a business activity to a contractor in a foreign country
Offshoring
Trend Publishing Inc. send its typesetting activities to a contractor in Indonesia. Trend is
Offshoring
Which of the following statements about outsourcing and offshoring is true?
Offshoring is used to lower costs in a firm's value chain.
A process by which change emerges from individuals or teams as they innovate, solve problems, seek more effective ways to accomplish their work, react to large environmental shifts, or interact with others in cross-functional positions
Organic Change
A process by which change emerges from individuals or teams as they innovate, solve problems, seek more effective ways to accomplish their work, react to large environmental shifts, or interact with others in cross functional positions
Organic Change (happens naturally)
The opposite of mechanistic organization, characterized by: (i) a low high degree of high degree of job standardization and job specialization; (ii) loose definitions of roles and responsibilities; (iii) less hierarchical leadership with clear lines of authority; (iv) information communicated laterally in a more advice and consenus form; and (v) encouragement of employees to develop job-specific knowledge outsize their area of specialization
Organic Organization, Clan Approach
The processes and activities that organizations go through to align themselves with internal and external changes in the business environment and to prepare for future potential opportunities
Organizational Change
The desired end result of socialization whereby employees become committed to the organization and its goods.
Organizational Commitment
The formal systems, levers, and decisions an organization adopts or employs in pursuit of its strategy.
Organizational Design
The pattern of organizational roles, relationships, and procedures that enable coordinated action among employees.
Organizational Structure
Color Cosmetics manufacturers, whose target market comprised only female customers, have now introduced a new range of products for the male population. They came up with new strategies and advertisements to reach the new target market. They did so to maintain a competitive advantage in the industry. Which of the following strategies did the company apply to compete more effectively?
Organizational change
Color Cosmetics, whose target market comprises only female customers, has not introduced a new range of products for the male population. It came up with new strategies and advertisements to reach the new target market. It did so to maintain a competitive advantage in the industry. Which of the following strategies did the company apply to compete more effectively?
Organizational change
The desired end result of cultural socialization, whereby employees buy in to the organization and its goals
Organizational commitment
1. How will jobs be divided and how much much autonomy will be allowed throughout the organization? 2. Should jobs be formalized, structured, and standardized? 3. Should the company focus on customers, geographic regions, product categories, functions, or some combination of these?
Organizational design decisions
Those who believe that more control is warranted in organizational design to ensure that jobs are performed satisfactory and efficiently.
Organizers
Measurements of the balanced scorecard that monitor past success
Outcomes
The products and/or services that an organization produces
Outputs
Only two things can be observed. So, when Barcelona Restaurant is assessing its restaurant's total food cost, it is measuring ___. When it is using in-store cameras to monitor employee interactions with customers, it is measuring ____.
Outputs; behavior
Using bottom-up approach to generate commitment to targeted objectives
Participation Modern View
Top-down communication and setting of goals/objectives
Participation Traditional Approach
The identification, measurement, and management of individual performance in organizations
Performance Appraisal
Measure the extent to which applicants possess different kinds of job-related personality dimensions.
Personality tests
Describe the predominant form of change at Blockbuster in response to Netflix.
Planned
A process where change efforts are and driven from corporate strategy departments or top-down directions
Planned Change
A process where change efforts are planned and driven from corporate strategy departments or top-down directives
Planned Change
The kind of change illustrated by Zappo's adoption of Holocracy as its (dis)organizational redesign, in which the change process was part of CEO Tony Hsieh's grand vision and strategy implemented via top-down directives
Planned/Transformative Change
A process in which change is initiated based on some anticipatory event or opportunity on the horizon
Proactive Change
A series of plans and approaches to implement a change effort.
Process
A team based compensation structure that shares rewards based on improvements in profitability.
Profit-sharing
The most important provision of the Civil Rights Act, Title VII is that
Prohibits employment discrimination based on race, sex, color, religion, and national origin.
occurs when employment outcomes, such as hiring, promotion, or simply keeping one's job, depend on whether an individual submits to being sexually harassed.
Quid pro quo sexual harassment
Describe the predominant form of change at Blockbuster in response to Netflix.
Reactive
Describe the predominant form of change at Chipotle since the food-borne illness crisis
Reactive
A process in which change is initiated in response to some known external threat or opportunity
Reactive Change
Change initiated in response to some known external threat or opportunity
Reactive Change
The kind of change illustrated by Blockbuster's addition of an online movie rental service only because it could no longer ignore the threat posed by Netflix's business strategy
Reactive Change
When an organization provides information to job candidates that highlights the most important conditions of a job including its positive and negative aspects
Realistic Job Preview
To compete more effectively To improve performance To survive as a competitor
Reasons for beginning a change initiative
Is altering a company's culture relatively easy or relatively difficult to accomplish?
Relatively speaking, very difficult
Specific Measurable Attainable Realistic Timely
SMART Goals
Used to measure qualities directly or indirectly related to job performance.
Selection Tests
Pre-employment test used in the recruiting and hiring process to measure qualities directly or indirectly related to job performance
Selection Tests (Vulnerable to a disparate impact claim of discrimination)
When Barcelona Restaurant Group chooses 25.88% of sales (3:18 - 3:37 in the video) as its objective for total food costs, Barcelona is engaged in which phase of the Control Cycle?
Set Targets
___ is the second stage of the control cycle.
Set Targets
A functional or divisional unit that operates by its own rules and guidelines and does not openly share information with other units
Silos
Functional or divisional units that operate by their own rules and guidelines, and which do not openly share information with other units
Silos (generally are not good for horizontal or lateral communication)
Asking to explain how a candidate would respond in various situations likely to occur on the job
Situational interviews
Ask applicants how they would respond in a hypothetical situation ("What would you do if . . . ?"). These questions are more appropriate for hiring new graduates, who are unlikely to have encountered real-work situations because of their limited work experience.
Situational questions
A disciplined, quantitative approach to improve cycle time, reduce costs, and eliminate waste with a technical goal of 3.4 defects per million (six standard deviations from the mean)
Six Sigma
What is a key distinction between a company that can take a clan/organic approach, and one that cannot?
Size - Small vs Large company Nature of the product - creative vs structured
Pay that is determined by an individual's personal skills and knowledge
Skill-based Pay
The process of understanding how work gets done and how individuals should interact in organization
Socialization
UGA's New Student Orientation is a form of .
Socialization
Which of the following statements is true about the various customer metrics?
Some companies find it valuable to monitor the amount customers spend on their products relative to all other products.
Measure the extent to which an applicant possesses the particular kind of ability needed to do a job well.
Specific ability tests
Compliance Identification Internalization
Stages of building organizational commitment
Identifying the processes to benchmark Choosing measurement criteria and collecting data Find the best companies for each process Harvesting and analyzing data Creating plan for improvement
Steps in Benchmarking
HR fully integrated with strategic direction, long-range planning, training and development focused on strategic issues
Strategic Integration
The process of recalibrating or confirming a firm's strategy in light of changes in the external environment
Strategic control
The HR department at Green Company is involved in long-rang planning, training development, and the strategic issues of a company. Green Company is most likely in the
Strategic integration stage of growth
When employees of Hewlett-Packard had difficulty adjusting a changing marketplace and a new CEO, the demonstrated a(n)
Strong culture
Traditional enterprise data from customer information systems
Structured Data
Situational questions Behavioral questions Background questions Job-knowledge questions
Structured Interview Questions
Cultures that form around geographic or organizational units in a company
Subcultures
A condition that can occur when certain employees who survive a downsizing become narrow-minded, self-absorbed, resentful, or risk-averse
Survivor Syndrome
The stage in a business life cycle where the company is investing and extracting money, trying to maximize its return on investment
Sustain Stage
Innovative forces that improve the performance of established products, along the dimensions of performance that mainstream customers in major markets have historically valued
Sustainable Technologies
Reined in some of the powers of the unions
Taft-Hartley Act
When Barcelona Restaurant Group has the "war room" meetings with all the restaurant manager sand chefs, and reviews the food cost numbers, breaks down how to calculate food yield and pricing in order to attain a desired food-cost percentage, and then passes out worksheets to assist the restaurants so that they can alter their practices to achieve the desired food-cost percentage, Barcelona is engaged in which phase of the Control Cycle?
Take corrective action
_________ directly impact culture by the manner in which they encounter big problems, solve them, and perceive the effects of their solutions.
Teams
A-Recruitz is an organization that allows its employees to work from home. Most of the interaction between the employees and the organization takes place through email. Moreover, the organization is able to maintain increased employee performance and satisfaction. Identify the work option offered by A-Recruitz to its employees.
Telecommuting
What is the Change Process in Figure 11.2 intended to show or communicate?
That dissatisfaction, a new model, and the process for change, must be greater than, perhaps overwhelmingly greater than, the resistance to change and costs of change that all organization members experience
Identify Measures Set Targets Measure Results Take Corrective Action
The four steps of the control cycle
Which of the following statements is true of division of labor?
The repetitive nature of specialized jobs lends itself to quick and efficient training of new resources.
Which of the following statements best describes sustainable technologies?
They improve the performance of established products, along the dimensions of performance that mainstream customers in major markets have historically valued.
Which of the following requirements should be met for human resources to become a competitive advantage?
They must add value to the organization
Internal business processes are important because.
They represent the day to day operations that deliver products & services to customers.
Thomas is the top manager of a firm that is going to acquire another firm in a similar industry. In terms of culture, which of the following should Thomas do after acquiring the company?
Thomas should preserve those elements of each culture that are essential to the company's well-being.
Which of the following is the most cited reason why organizations initiate change?
To improve performance
Which of the following is a most cited reason why organizations initiate change?
To improve performance.
Urgency or crisis High dissatisfaction Low resistance High level of support Leadership has relevant information Changes are clear
Top-Down, Directive Change Process
The process for implementing chance that is best suited to situations involving a crisis, high dissatisfaction with the status quo, low resistance, needed changes that are clear, and information in the hands of management
Top-down, directive
The amount of time required to develop and deliver products and services to the customer.
Total Cycle Time
The satisfaction of customer needs through a set of four reinforcing principles: customer focus, process focus, teamwork and participation, and continuous improvement
Total Quality Management
One of the more important measurements of TQP is ________, defined as the amount of time required to develop and deliver products and services to the customer.
Total cycle time
Zappos' adoption of Holocratic organizational structure is best described as __ change.
Tranformative
A process in which change is radical or disruptive, typically in response to a major competitive threat and/or significant change in a firm's external or internal environments
Transformative Change
A divisional organizational structure is excellent for accountability, while a matrix organizational structure is poor for accountability.
True
A matrix organizational structure is excellent for complex business environment.
True
A network organizational structure is excellent for adaptability and responsiveness.
True
From an organizational standpoint, the goal desired end result of socialization is organizational commitment.
True
Organizations that are more mechanistic and beauracratic tend to have a greater division of labor--i.e., more specialized jobs.
True
The budgeting process involves allocating financial resources and measuring expected quantitative and qualitative outcomes of a firm.
True
The control cycle is a four-stage process that provides a mechanisms and systems to monitor the transformation process, ensuring that outputs are produced to the desired quality, quantity, and specifications of an organization.
True
True/False. A realistic job preview provides information to job candidates highlighting the most important conditions of a job including the positive and negative aspects.
True
True/False. Behaviorists are those who support a more open organizational design where roles and responsibilities are more loosely defined.
True
True/False. Dissatisfaction provides the energy necessary for breaking organizational inertia.
True
True/False. In communicating the model for change, leaders need to appeal to both logic and emotions.
True
True/False. In many organizations, the backbone of culture generally begins with its founder.
True
True/False. Organizations that focus solely on performance without a focus on support tend to produce burnout contexts.
True
True/False. The embedded nature of culture often makes change very difficult even in the face of strong competitive pressures.
True
True/False. The number of values a firm holds is not as important as how strongly held they are and how much organizational buy-in they generate.
True
True/False. The success of outsourcing is driven by a firm's ability to effectively manage people in different locations.
True.
John, an organization's HR manager, is making plans to offer training to his employees. To effectively proceed with the training process John should first.
Understand the goals of training.
Social data from customer feedback streams, blogging sites, and social media platforms
Unstructured Data
Quantitative and qualitative aspects of products or services that customers value most
Value Propositions
How much an employee creates, executes, and administers activities in a certain area of the firm.
Vertical Specialization
Allowed employees the right to organize and fight for better, wages, working conditions, and job security
Wagner Act
Defines the roles of the labor force Coordinates activities between members Identifies the borders of the firm and external relationships.
What are the three functions of an organization?
According to Reed Hastings of Netflix, this is the true indicator of a company's actual values and culture
Who gets rewarded, promoted, and fired (the behavior and skills valued in fellow employees)
Require applicants to perform tasks that are actually done on the job.
Work sample tests (performance tests)
Dress code is an example of this level of organizational culture
artifacts (Surface, observable stuff)
Leadership substitutes refer to.
aspects of a situation that make leadership unnecessary.
"reasonably necessary to the normal operation of that particular business."
bona fide occupational qualification (BFOQ)
answers the question of "who reports to whom" and signifies formal authority relationships
chain of command
The framework that links key customer-based metrics such as market share and retention to the financial performance of a firm.
customer perspective of the balanced scorecard
The two basic sources for recruiting talent. One has the advantage of the mandate and the company already knowing each other well; the other has the disadvantage of requiring higher compensation
external vs internal recruiting
According to the formula that makes up the change equation, the combination of dissatisfaction with the status quo, new model for the organization, and the process for change must be.
greater than the resistance to change and cost of change that employees experience.
Hersey and Blanchard believed that.
leaders have the flexibility and range of skills to adapt their behavior to the maturity of their subordinates.
The process of managing employees by outlining a series of specific objectives or milestones that they are expected to meet in a time period
management by objectives, goal setting
The most important provision of the Civil Rights Act, Title VII is that it.
prohibits employment discrimination based on race, sex, color, religion, and national origin.
Describe the predominant form of change at Blockbuster in response to Netflix.
reactive
Describe the predominant form of change at Microsoft under Steve Ballmer.
reactive
Describe the predominant form of change at Chipotle since the food-borne illness crisis.
transformative
Describe the predominant form of change at Microsoft under Satya Nadella
transformative
GudGadgets is a leading manufacturing company. It used a particular raw material as the base for manufacturing most of its products. Due to some recent events, the government banned the overall supply of that raw material. As a result, the company had to switch to another raw material. This called for a change in the machines and other processes involved in manufacturing its products. The company stopped the production of few established products and introduced some new products to remain competitive. This scenario is an example of?
transformative
Dissatisfaction provides the energy necessary for breaking organizational inertia.
true
An automobile manufacturer using Just In Time inventory management hired a truck driver to deliver parts and material from a nearby warehouse to the manufacturing facility. It turns out the driver has a record of moving violation convictions, including DUI's, as well as convictions for certain violent crimes. Somehow, the auto manufacturer missed these convictions in the hiring process. While making a delivery, the driver gets into a dispute with a worker at the warehouse and beats the worker almost to death. On his way back to the plant, the driver stops at a gas station to fuel up the truck. To even out from the fight, he buys and downs most of a fi h of vodka. He then then runs a red-light and crushes a car with a family of four in it. Both the warehouse worker and the family of four sue the automobile manufacturer claiming it is liable for the injuries they suffered as a result of the truck driver's actions. Does the auto manufacturer have significant exposure to liability under these facts?
yes
You're starting your own business and you remember from MGMT 3000 how effective personality, integrity, intelligence and aptitude tests are in increasing the quality of the employees hired. So you administer a battery of such tests to job applicants at your company, and the results seem promising. You realize, however, that it's possible that you're turning away a relatively high percentage of applicants within a protected class (e.g., race, gender, national origin, doesn't matter which for this question). But it's based solely on the outcome of the tests, not upon any intentional discrimination based on any protected characteristic (e.g., race, religion, national origin, etc.). In fact, you abhor such discrimination. Are you vulnerable to a claim of illegal discrimination under federal law (e.g., Title VII)?
yes
