MGMT3140 Final Exam Review

Which of the following is included in a job analysis? A. A job description and a job specification B. A job description and a job appraisal C. A job specification and a job profile D. A job specification and a job appraisal E. A job profile and a job design

A. A job description and a job specification Job analysis provides the information required by virtually every human resources activity. It does two things: it clarifies both a job description and a job specification.

At one time in Portland, Oregon, about one-fifth of the city's population consisted of various ethnic minorities, but only 12 percent of new construction employees were minorities. Which of the following programs when used by the city government is likely to increase minority group members' participation in public contracts? A. Affirmative action B. Quid pro quo system C. Positive-effect recruitment D. Realignment E. Proactive recruitment

A. Affirmative action To correct the past exclusion of women and minorities, companies introduced affirmative action, which includes special efforts to recruit and hire qualified members of groups that have been discriminated against in the past. Affirmative action programs will increase minority participation in public contracts.

_____ technologies are those that are commonplace in the industry; everyone must have them to be able to operate. A. Base B. Emerging C. Strategic D. Key E. Pacing

A. Base Base technologies are those that are commonplace in the industry; everyone must have them to be able to operate. Thus, they provide little competitive advantage. Managers have to invest only to ensure their organization's continued competence in the technology.

Which of the following groups of adopters of a new technology includes well-respected opinion leaders or organizations to which others look for ideas and up-to-date technological information? A. Early adopters B. Late majority C. Innovators D. Early majority E. Laggards

A. Early adopters Early adopters are critical to the success of a new technology because they include well-respected opinion leaders. Early adopters often are the people or organizations to which others look for leadership, ideas, and up-to-date technological information.

Which of the following levels of the pyramid of global corporate social responsibility and performance represents a company's requirement to be profitable? A. Economic responsibility B. Relative responsibility C. Ethical responsibility D. Philanthropic responsibility E. Legal responsibility

A. Economic responsibility The economic responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors. It requires the company to be profitable.

_____ is a change in method or technology; it is a useful departure from previous ways of doing things. A. Innovation B. Integration C. Reinforcement D. Diffusion E. Arbitration

A. Innovation Innovation is a change in method or technology; it is a positive, useful departure from previous ways of doing things. Innovation can result from combining things that are new or from combining existing things in new ways.

Which of the following is true of training? A. It usually starts with a needs assessment. B. It is primarily given to higher-level employees. C. It focuses on teaching managers how to perform their future jobs. D. It involves teaching professional employees broader skills. E. It is given only to those employees who opt for it. Training sometimes is distinguished from development.

A. It usually starts with a needs assessment. Training usually refers to teaching lower-level employees how to perform their present jobs, while development involves teaching managers and professional employees broader skills needed for their present and future jobs. Phase one of training usually starts with a needs assessment.

____ management is the set of practices aimed at discovering and harnessing an organization's intellectual resources—fully utilizing the intellects of the organization's people. A. Knowledge B. Scientific C. Project D. Service E. Autocratic

A. Knowledge Knowledge management is the set of practices aimed at discovering and harnessing an organization's intellectual resources, fully utilizing the intellects of the organization's people. It is about finding, unlocking, sharing, and altogether capitalizing on the most precious resources of an organization.

Who among the following adopters of a new technology are extremely suspicious of innovation and change? A. Laggards B. Early adopters C. Innovators D. Early majority E. Early minority

A. Laggards The last group to adopt new technology are laggards. Often isolated and highly conservative in their views, laggards are extremely suspicious of innovation and change.

Who among the following adopters of a new technology are more skeptical of technological change and approach innovation with great caution? A. Late majority B. Early majority C. Late minority D. Early minority E. Early adopters

A. Late majority Members of the late majority are more skeptical of technological change and approach innovation with great caution, often adopting only out of economic necessity or increasing social pressure.

_____ power is dominant when subordinates are obliged to comply by virtue of a boss's authority. A. Legitimate B. Reward C. Coercive D. Referent E. Expert

A. Legitimate The leader with legitimate power has the right, or the authority, to tell others what to do; employees are obligated to comply with legitimate orders

Phil has been assigned with the task of efficient downsizing. Which of the following should Phil avoid while performing this task? A. Making slow, small, and frequent layoffs B. Identifying and protecting talented people C. Giving special attention and help to those who lost their jobs D. Communicating constantly with people about the process E. Identifying how the organization will operate more effectively in the future

A. Making slow, small, and frequent layoffs. Phil should avoid making slow, small, and frequent layoffs. Phil should communicate constantly with people about the process, and invite ideas for alternative ways to operate more efficiently.

Which of the following is one of the concerns of human resources managers? A. Managing employee layoffs B. Understanding the needs of customers C. Creating economies of scale D. Improving the quality of products E. Increasing sales

A. Managing employee layoffs HR managers have many concerns regarding their workers, including attracting talent; maintaining a well-trained, highly motivated, and loyal workforce; managing diversity; devising effective compensation systems; managing layoffs; and containing health care and pension costs.

Which of the following is a conception of human needs organizing needs into a pyramid of five major types? A. Maslow's need hierarchy B. Alderfer's needs theory C. Herzberg's two-factor theory D. The Equity theory E. McClelland's needs theory

A. Maslow's need hierarchy Abraham Maslow organized five major types of human needs into a hierarchy, as shown in Figure 13.3. Maslow's need hierarchy illustrates his conception of people satisfying their needs in a specified order, from bottom to top.

Which of the following is critical for diversity programs to succeed? A. Obtaining top management's leadership and commitment B. Assessing employees' performance on a daily basis C. Improving compensatory benefits for all employees D. Training minority groups to adapt to the norms of the majority E. Encouraging employees to stereotype different colleagues

A. Obtaining top management's leadership and commitment Obtaining top management's leadership and commitment is critical for diversity programs to succeed. Otherwise the rest of the organization will not take the effort seriously.

_____ training is typically used to familiarize new employees with their new jobs, work units, and the organization in general. A. Orientation B. Diversity C. Team D. On-the-job E. Introductory

A. Orientation Orientation training is typically used to familiarize new employees with their new jobs, work units, and the organization in general. Done well, orientation training has a number of benefits, including lower employee turnover, increased morale, better productivity, and lower recruiting and training costs.

Which of the following is one of the four fundamental traditional management functions? A. Planning B. Contracting C. Outsourcing D. Distributing E. Innovating

A. Planning The four traditional functions of management are planning, organizing, leading, and controlling. They remain as relevant as ever, and they still provide the fundamentals that are needed in start-ups as much as in established corporations.

_____ create alternative combinations of different factors into a total picture of the environment and a firm. A. Scenarios B. Forecasts C. Benchmarks D. Competitive intelligences E. Strategic maneuvers

A. Scenarios As managers attempt to determine the effect of environmental forces on their organizations, they frequently develop scenarios of the future. Scenarios create alternative combinations of different factors into a total picture of the environment and the firm.

Who is responsible for an organization's strategic plan? A. Senior executives B. Middle management C. Frontline supervisors D. Tactical managers E. Operational managers

A. Senior executives Senior executives are responsible for the development and execution of the strategic plan, although they usually do not formulate or implement the entire plan personally.

44. _____ interventions of organization development help organizations conduct mergers and acquisitions and develop alliances. A. Strategic B. Technostructural C. Human resources management D. Human process E. Operational

A. Strategic Strategic interventions are organization development techniques that include helping organizations conduct mergers and acquisitions, change their strategies, and develop alliances.

_____ leadership gives purpose and meaning to organizations while envisioning and creating a positive future. A. Strategic B. Supervisory C. Operational D. Pseudotransformational E. Autocratic

A. Strategic Strategic leadership gives purpose and meaning to organizations. Strategic leadership involves anticipating and envisioning a viable future for the organization and working with others to initiate changes that create such a future.

_____ is a situational model that focuses on the participative dimension of leadership. A. The Vroom model B. The path-goal theory C. Fiedler's contingency model D. Leader substitutes theory E. The directive model

A. The Vroom model The Vroom model emphasizes the participative dimension of leadership: how leaders go about making decisions. The model uses the basic situational approach of assessing the situation before determining the best leadership style.

Which of the following can be a useful clue about an organization's culture? A. The way employees interact with each other B. Information printed in the media about stock prices C. The macroenvironment D. The personality characteristics of employees E. The industrial environment

A. The way employees interact with each other The culture of an organization may be difficult for an observer to define easily, yet it can often be sensed almost immediately. The ways people dress and behave or the ways they interact with each other and with customers are clues to an organization culture.

Scenario D. Tim and George are the marketing managers of two different branches of an organization. While preparing the sales report that he has to submit to the top management, Tim realizes that his sales executives have consistently failed to achieve the monthly sales targets. He immediately announces that everyone should work on weekends until the sales target for the month is achieved. On the other hand, George's team members have been able to achieve their monthly targets due to the changes that he had implemented in the beginning, to avoid any undesirable outcomes. In Scenario D, Tim's sales executives have consistently failed to achieve the monthly sales target. This is an example of ____. A. a performance gap B. goal displacement C. negative reinforcement D. an adverse impact E. discounting the future

A. a performance gap A performance gap is the difference between actual performance and the performance that should or could exist. As an impetus for change, a performance gap can apply to the organization as a whole; it also can apply to departments, groups, and individuals

According to McClelland, the most important needs for managers are the needs for: A. achievement, affiliation, and power. B. existence, relatedness, and growth. C. motivation and hygiene. D. equity and fair treatment. E. self-actualization and ego.

A. achievement, affiliation, and power. According to McClelland, three needs are most important for managers: the need for achievement, the need for affiliation, and the need for power. Low need for affiliation and moderate to high need for power are associated with managerial success for both higher- and lower-level managers.

Quadra Tech. was the first company to utilize a new device developed by Intech Corp. that enabled Quadra to find flaws in its cars using sound waves. Quadra Tech. tested the device and provided a testimonial to other organizations about the product. However, the other organizations were hesitant and decided to wait until the product was proven reliable. In this case, Quadra Tech. can be classified as: A. an innovator. B. a late adopter. C. part of the early majority. D. part of the late majority. E. a laggard.

A. an innovator. Innovators are adventurous and willing to take risks. They are willing to pay a premium for the latest and newest technology or product to come along and to champion it if it meets with their approval.

The process of comparing an organization's practices and technologies to those of other companies is known as: A. benchmarking. B. scanning. C. situational analysis. D. technological auditing. E. strategic maneuvering.

A. benchmarking. Benchmarking is the process of comparing an organization's practices and technologies with those of other companies. The ability to benchmark technologies against those of competitors varies among industries.

A(n) _____ is a formal planning step that focuses on an entire venture and describes all the elements involved in starting it. A. business plan B. operational plan C. opportunity analysis D. trend analysis E. strategic plan

A. business plan The business plan describes all the elements involved in starting a new venture. The business plan describes the venture and its market, strategies, and future directions.

Control based on the norms, values, shared goals, and trust among group members is referred to as _____ control. A. clan B. feedback C. concurrent D. feedforward E. market

A. clan Clan control, unlike the other types of control, does not assume that the interests of the organization and individuals naturally diverge. Instead, clan control is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them.

The set of important assumptions about an organization and its goals and practices that members of the company share is called organization _____. A. culture B. design C. climate D. layout E. structure

A. culture Organization culture is the set of important assumptions about an organization and its goals and practices that members of the company share. It is a system of shared values about what is important and beliefs about how the world works.

An organization in which lower-level managers make important decisions is a(n) _____ organization. A. decentralized B. horizontal C. vertical D. informal E. centralized

A. decentralized The delegation of responsibility and authority decentralizes decision making. In decentralized organizations, more decisions are made at lower levels.

The most difficult part of human resources planning is conducting: A. demand forecasts. B. internal labor supply forecasts. C. external labor supply forecasts. D. job analyses. E. job specifications.

A. demand forecasts. The most difficult part of human resources planning is conducting demand forecasts, that is, determining how many and what type of people are needed.

The systemwide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organizational effectiveness is referred to as organization ____. A. development B. restructuring C. ambidexterity D. reengineering E. positioning

A. development Organization development (OD) is a systemwide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organization effectiveness.

The final stage in the human resources planning process is to: A. evaluate the activities conducted to ensure that they are producing the desired results. B. discharge those employees determined to be ineffective at realizing organizational goals. C. implement the plans determined earlier in the planning process. D. evaluate the decisions made for legal compliance. E. realize the organization's business plans to ensure that the right number and types of people are available.

A. evaluate the activities conducted to ensure that they are producing the desired results. The final stage in HR planning is known as evaluating. Here human resources activities are evaluated to determine whether they are producing the results needed to contribute to the organization's business plans.

An evaluation conducted by one organization on another organization is referred to as a(n) _____ audit. A. external B. competitive C. comparative D. intrinsic E. parallel

A. external Management audits may be external or internal. An external audit is an evaluation conducted by one organization, such as a CPA firm, on another.

The rewards given to a person by the boss, the company, or some other person are known as _____ rewards. A. extrinsic B. high-level C. intrinsic D. low-level E. internal

A. extrinsic' Extrinsic rewards are given to people by the boss, the company, or some other person. An intrinsic reward is a reward a person derives directly from performing the job itself.

The process of reflection: A. facilitates accurate two-way communication. B. is the responsibility of the sender. C. can be minimized with effective listening techniques. D. distorts information and misunderstandings result. E. places a greater emphasis on talking than on listening.

A. facilitates accurate two-way communication. Reflection is a process by which a person states what he or she believes the other person is saying. This technique places a greater emphasis on listening than on talking and the result is more accurate two-way communication.

Paul tells his manager, Emma, a slightly misleading version of a problem he faces with a current project. He does so to ensure that it does not worry her. In this case, Paul's act can be best described as: A. filtering. B. speculating. C. decoding. D. encoding. E. introspecting.

A. filtering. Filtering is the process of withholding, ignoring, or distorting information. Senders do this, for example, when they tell the boss what they think the boss wants to hear or give unwarranted compliments rather than honest criticism. This is what Paul does while telling his problem to Emma.

Identifying the specific forces that prevent people from changing and those that will drive people toward change is called ____. A. force-field analysis B. strategic maneuvering C. operational planning D. trend analysis E. situational assessment

A. force-field analysis One technique that helps to manage the change process, force-field analysis, involves identifying the specific forces that prevent people from changing and the specific forces that will drive people toward change. Managers operating under this concept investigate forces acting in opposite directions.

The presence of rules and regulations governing how people in the organization interact is called: A. formalization. B. unity of command. C. span of control. D. concentration. E. standardization.

A. formalization. To improve coordination, organizations may rely on formalization—the presence of rules and regulations governing how people in the organization interact.

The highest group performance occurs when a: A. highly cohesive group has high performance norms. B. highly cohesive group has low performance norms. C. noncohesive group has high performance norms. D. noncohesive group has low performance norms. E. highly cohesive group has eliminated the need for performance norms.

A. highly cohesive group has high performance norms. As Figure 14.1 shows, the highest performance occurs when a cohesive team has high performance norms. But if a highly cohesive group has low performance norms, that group will have the worst performance. In the group's eyes, however, it will have succeeded in achieving its goal of poor performance.

A team strategy that entails making decisions with the team and then telling outsiders of the team's intentions is known as ____. A. informing B. parading C. probing D. collaborating E. empowering

A. informing General team strategies include informing, parading, and probing. The informing strategy entails making decisions with the team and then telling outsiders of the team's intentions.

While working at Giggles Corp., Kelly has created a new venture based solely on her idea and Giggles' proprietary technology. Kelly can be described as a(n): A. intrapreneur. B. independent entrepreneur. C. sole proprietor. D. venture capitalist. E. franchisee.

A. intrapreneur. Intrapreneurs are new venture creators working inside big companies; they are corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea.

An operation that achieves increased efficiency while simultaneously improving effectiveness is best described as practicing ____. A. lean manufacturing B. ISO 9001 C. mass customization D. concurrent engineering E. JIT operations

A. lean manufacturing Lean manufacturing is based on a commitment to making an operation both efficient and effective; it strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.

An organization that is skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights is known as a ____ organization. A. learning B. high-involvement C. mechanistic D. network E. matrix

A. learning A learning organization is an organization skilled at creating, acquiring and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights. It is skilled at solving problems, experimenting with new approaches, learning from its own experiences, learning from other organizations, and spreading knowledge quickly and efficiently.

An advantage of licensing as a method of entering global competition is that the: A. licensee bears most of the costs and risks associated. B. licensing company has control over its technology. C. licensing company has control over quality levels. D. licensing company has lower communication costs. E. licensee has lower production costs.

A. licensee bears most of the costs and risks associated. The advantage of licensing is that the company need not bear the costs and risks of opening up an overseas market. However, a problem arises when a company licenses its technological expertise to overseas companies.

Survivor's syndrome refers to the: A. loss of productivity and morale in employees who remain after downsizing. B. guilt on the part of management for going ahead with the downsizing. C. slump in market share after a new company enters the market. D. lack of motivation in the people who got laid off to find new jobs. E. distress experienced by employees who have been laid off.

A. loss of productivity and morale in employees who remain after downsizing. Those who survive downsizing and keep their jobs tend to exhibit survivor's syndrome. They struggle with heavier workloads; wonder who will be next to go; try to figure out how to survive; lose commitment to the company and faith in their bosses; and become narrow-minded, self-absorbed, and risk-averse. As a consequence, morale and productivity usually drop.

A disadvantage of licensing is that the licensing company: A. may lose control over its technology. B. takes on greater political risk. C. takes on greater development costs. D. realizes higher profit margins. E. bears most of the risks associated.

A. may lose control over its technology. A problem arises with international licensing when a company licenses its technological expertise to overseas companies when technological know-how is the basis of the competitive advantage. It may lose control over the technology by licensing it.

The degree to which a communication channel conveys information is referred to as: A. media richness. B. instrumentality. C. valence. D. channel structuration. E. perception.

A. media richness. The amount of information a medium conveys is called media richness. The more information or cues a medium sends to the receiver, the richer the medium is.

Downsizing in organizations refers to the: A. planned elimination of organizational positions. B. decrease in product volume and variety. C. transition from corporate equity to corporate debt. D. sale of less efficient operating units. E. decrease in the use of organizational resources.

A. planned elimination of organizational positions. Downsizing is the planned elimination of positions or jobs. Common approaches to downsizing include eliminating functions, hierarchical levels, or even whole units.

Control has been called one of the Siamese twins of management. The other twin is ____. A. planning B. organizing C. leading D. directing E. empowerment

A. planning Control has been called one of the Siamese twins of management. The other twin is planning. Some means of control are necessary because once managers form plans and strategies, they must ensure that the plans are carried out.

Oxana was recently passed over for promotion. She was told that management was looking for someone more aggressive to fill the position. Oxana's coworkers were surprised because she had a reputation for getting things done. She later overheard one of the managers saying that he did not believe she was committed to her career since "she, like most women, leaves work every day at 5:00 sharp." It might appear that Oxana's employer has made a mistake regarding ____. A. stereotyping B. mistrust C. affirmative action D. cohesiveness E. arbitration

A. stereotyping Stereotypes are usually negative or condescending. Women may be stereotyped as not dedicated to their careers.

55. The final step in the control process is: A. taking corrective action. B. setting performance standards. C. measuring performance. D. comparing performance with standards. E. determining deviations.

A. taking corrective action. A typical control system has four major steps: setting performance standards, measuring performance, comparing performance against the standards and determining deviations, and taking action to correct problems and reinforce successes.

Actions taken to ensure that the work group or organization reaches its goals are referred to as ____. A. task performance behaviors B. organizational citizenship behaviors C. group maintenance behaviors D. chain of commands E. affirmative actions

A. task performance behaviors Leadership requires getting the job done. Task performance behaviors are actions taken to ensure that the work group or organization reaches its goals.

NAFTA combined the economies of _____ into one of the world's largest trading blocs. A. the United States, Canada, and Mexico B. Canada, Mexico, and South America C. South America, the United States, and Central America D. Latin America, the Pacific Rim, and the European Union E. the United States, the European Union, and Canada

A. the United States, Canada, and Mexico The North American Free Trade Agreement (NAFTA) combined the economies of the United States, Canada, and Mexico into one of the world's largest trading blocs with nearly 450 million U.S., Canadian, and Mexican consumers and a total output of $17 trillion.

Teaching lower-level employees how to perform their present jobs is referred to as: A. training. B. performance appraisal. C. development. D. performance counseling. E. workplace education.

A. training. Training usually refers to teaching lower-level employees how to perform their present jobs, while development involves teaching managers and professional employees broader skills needed for their present and future jobs.

Jake sent a report via an e-mail to John, his manager, updating him on the status of a project he has been working on. John in return has replied that he has received the report and is happy with Jake's progress. This situation best exemplifies: A. two-way communication. B. downward communication. C. dual communication. D. intrapersonal communication. E. circular communication.

A. two-way communication. When receivers respond to senders, two-way communication has occurred. True two-way communication means not only that the receiver provides feedback but also that the sender is receptive to the feedback. Jake sends a report to John and receives feedback which represents two-way communication.

The three basic stages of motivating people to change within an organization are: A. unfreezing, moving, and refreezing. B. mobilizing, moving, and stabilizing. C. planning, instituting, and evaluating. D. storming, norming, and performing. E. isolating, transferring, and implementing.

A. unfreezing, moving, and refreezing. Motivating people to change often requires three basic stages: unfreezing (breaking from the old ways of doing things), moving (instituting the change), and refreezing (reinforcing and supporting the new ways).

Which of the following best describes a vision as it pertains to leadership? A. A plan to make an effective financial turnaround B. A mental image of a future state of an organization C. An image that people have of an organization D. An operational plan for a specific department E. A leader's plan for accomplishing his personal goals

B. A mental image of a future state of an organization A vision is a mental image of a possible and desirable future state of the organization. It expresses the leader's ambitions for the organization.

What characteristics do successful entrepreneurs who are decisive, tenacious, disciplined, and willing to sacrifice possess? A. Leadership B. Commitment and determination C. Opportunity obsession D. Creativity, self-reliance, and ability to adapt E. Motivation to excel

B. Commitment and determination ` Successful entrepreneurs show commitment and determination, meaning they are decisive, tenacious, disciplined, willing to sacrifice, and able to immerse themselves totally in their enterprises.

Which of the following decisions is likely to be a nonprogrammed decision? A. Decisions with certainty regarding cause-and-effect relationship B. Decisions concerning diversification into new products and markets C. Decisions regarding rules and definite procedures D. Decisions concerning merit system for promotion of state employees E. Decisions that depend on numerical computations

B. Decisions concerning diversification into new products and markets Nonprogrammed decisions are decisions concerning new, novel, complex decisions having no proven answers. They have a variety of possible solutions, all of which have merits and drawbacks. Decisions concerning diversification into new products and markets are likely to be nonprogrammed decisions.

_____ are measures of various characteristics of the people who make up groups or other social units. A. Psychographics B. Demographics C. Domain selections D. Lifestyle analytics E. Group dynamics

B. Demographics Demographics are measures of various characteristics of the people who make up groups or other social units. Work groups, organizations, countries, markets, and societies can be described statistically by referring to demographic measures such as their members' age, gender, family size, income, education, occupation, and so forth.

Which of the following responsibilities lies at the base of the pyramid of global corporate social responsibility and performance? A. Legal B. Economic C. Moral D. Ethical E. Philanthropic

B. Economic Social responsibilities of a company can be categorized into economic, legal, ethical, and philanthropic responsibilities. The economic responsibility of business lies at the base of the pyramid of global corporate social responsibility and performance.

Which of the following types of technologies is still under development and thus unproved? A. Base technologies B. Emerging technologies C. Key technologies D. Initial technologies E. Pacing technologies

B. Emerging technologies Emerging technologies are still under development and thus are unproved. They may, however, significantly alter the rules of competition in the future. Managers will want to monitor the development of emerging technologies but may not yet need to invest in them until they have been more fully developed.

Which of the following companies is among the top 10 for valuing diversity? A. Exxon Mobile B. Ernst & Young C. Pfizer D. Citigroup E. Google

B. Ernst & Young According to DiversityInc.com, Ernst & Young is one of the top 10 companies for recruitment and retention of diverse employees.

_____ is the system of rules that governs the ordering of values. A. Ethnocentrism B. Ethics C. Dynamics D. Legitimacy E. Dialectics

B. Ethics Ethics is the system of rules that governs the ordering of values. The premise is that managers, their organizations, and their communities thrive over the long term when the managers apply ethical standards that direct them to act with integrity.

Which of the following is a reason why some companies prefer to use expatriates at their overseas operations? A. It can cost three to four times as much to use host-country nationals, compared to expatriates. B. Expatriates often tend to transfer the corporate culture and best practices to other countries. C. The personal security of host-country nationals may be an issue in some developing countries. D. Governments may provide incentives to employ expatriates. E. Expatriates tend to be more available than the local employees.

B. Expatriates often tend to transfer the corporate culture and best practices to other countries. AT&T and Toyota have used expatriates to transfer their corporate cultures and best practices to other countries, in Toyota's case to its U.S. plants. Although developing a valuable pool of expatriates is important, local employees are more available, tend to be familiar with the culture and language, and usually cost less because they do not have to be relocated.

Which of the following is a danger sign that organizations may be allowing or even encouraging unethical behavior? A. Excessive emphasis over long-term consideration over short-term revenues B. Failure to establish a written code of ethics C. An informal corporate structure D. Flexible timings that allow employees to choose their hours of work E. Multiple levels of supervision and monitoring

B. Failure to establish a written code of ethics Many factors create a climate conducive to unethical behavior. Excessive emphasis on short-term revenues over longer-term considerations, failure to establish a written code of ethics, and a desire for simple, quick fix solutions to ethical problems are some signs that an organization may be allowing or even encouraging unethical behavior.

Which of the following is a disadvantage of electronic communication? A. Increased travel expenses B. Inability to pick up nonverbal cues C. Greater time demands D. Inefficiency for newcomers E. High investment costs

B. Inability to pick up nonverbal cues Disadvantages of electronic communication include the difficulty of solving complex problems that require more extended, face-to-face interaction and the inability to pick up subtle, nonverbal, or inflectional clues about what the communicator is thinking or conveying.

_____ is an arrangement by which an organization in another country buys the rights to manufacture a company's product in its own country for a negotiated fee. A. Offshoring B. International licensing C. Entering a joint venture D. Exporting E. Patenting

B. International licensing International licensing is an arrangement by which a licensee in another country buys the rights to manufacture a company's product in its own country for a negotiated fee (typically royalty payments on the number of units sold). The licensee then puts up most of the capital necessary to get the overseas operation going.

_____ are best described as new venture creators working inside big companies. A. Entrepreneurs B. Intrapreneurs C. Knowledge workers D. Sole proprietors E. Franchisees

B. Intrapreneurs Intrapreneurs are new venture creators working inside big companies; they are corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea.

Which of the following statements is true about the Internet? A. It has reduced threats to most businesses. B. It drives down costs. C. It does not influence globalization. D. It slows down globalization. E. It slows down decision making because large amounts of information are available.

B. It drives down costs. The Internet is important to business because it is a marketplace, a means for manufacturing goods and services, a distribution channel, an information service, and more. It drives down costs and speeds up globalization. It improves efficiency of decision making. Managers can watch and learn what other companies are doing on the other side of the world.

Which of the following statements about organization development is accurate? A. It is typically a narrow improvement in technology or operations. B. It is not directly concerned with technical aspects of the organization. C. It often creates barriers to human potential and employee development. D. It primarily aims to increase profitability of the firm. E. It tends to inhibit organization ambidexterity.

B. It is not directly concerned with technical aspects of the organization. The behavioral science component of organization development (OD) means that it is not directly concerned with economic, financial, or technical aspects of the organization, although they may benefit through changes in the behavior of the people in the organization.

Which of the following statements about the Sarbanes-Oxley Act is true? A. It was passed in 1992. B. It requires strict adherence to accounting rules. C. It gives senior managers power to not sign off on financial results. D. It is intended to maintain truth in advertising. E. It requires whistleblowers to be fired.

B. It requires strict adherence to accounting rules. Congress passed the Sarbanes-Oxley Act in 2002 to improve and maintain investor confidence. The law requires companies to have more independent board directors, to adhere strictly to accounting rules, and to have senior managers personally sign off on financial results.

Which of the following types of organizations pursues activities such as engaging in disciplined thinking, searching constantly for new knowledge, benchmarking, and sharing ideas throughout the organization via information systems? A. Mechanistic organizations B. Learning organizations C. High-involvement organizations D. Monolithic organizations E. Pluralistic organizations

B. Learning organizations Engaging in disciplined thinking and paying attention to detail, searching constantly for new knowledge, valuing and rewarding individuals, benchmarking, sharing ideas throughout the organization via reports and information systems are all some of the important activities of a learning organization.

_____ refers to the production of varied, individually customized products at the low cost of standardized, mass-produced products. A. Individual production B. Mass customization C. Flexible production D. Mass production E. Continuous process production

B. Mass customization Although issues of volume and variety often have been seen as trade-offs in a technological sense, today organizations are trying to produce both high-volume and high-variety products at the same time. This is referred to as mass customization.

Which of the following statements is true about a 360-degree appraisal? A. It involves using a single source for appraisal information. B. Often the person being rated can select the appraisers. C. It often misses qualities that other appraisal methods capture. D. Its objective is to provide a basis for administrative decisions. E. Usually, feedback is obtained only from top level managers.

B. Often the person being rated can select the appraisers. In a process known as 360-degree appraisal, feedback is obtained from every level involved with the employee: subordinates, peers, and superiors. Often the person being rated can select the appraisers.

Biomark Software Inc. has recently started operations as a business. The managers have already determined their objectives and have decided on the field of activity they will be dealing in. They have now started to attract people to work for them and have started determining the responsibilities of workers. Which of the following management functions are Biomark's managers performing? A. Planning B. Organizing C. Leading D. Optimizing E. Budgeting

B. Organizing Organizing is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. Organizing activities include attracting people to the organization, specifying job responsibilities, grouping jobs into work units, marshaling and allocating resources, and creating conditions so that people and things work together to achieve maximum success.

Which of the following functions of management is described as building a dynamic organization? A. Planning B. Organizing C. Leading D. Controlling E. Organizational staffing

B. Organizing The organizing function can be described as building a dynamic organization. Now and in the future, effective managers will build organizations that are flexible and adaptive, particularly in response to competitive threats and customer needs

_____ occurs when the organization contracts with an external provider to produce one or more of an organization's products or services. A. Proscription B. Outsourcing C. Offshoring D. Expatriation E. Franchising

B. Outsourcing Outsourcing occurs when an organization contracts with an outside provider to produce one or more of its goods or services. Offshoring occurs when companies move jobs to another country, typically where wages are lower.

According to Maslow's hierarchy of needs theory, which of the following forms the lowest level of needs? A. Social B. Physiological C. Ego D. Safety E. Self-actualization

B. Physiological According to Figure 13.3, physiological needs, which include the need for food, water, sex, and shelter are at the bottom of Maslow's need hierarchy. According to Maslow, people are motivated to satisfy the lower needs before they try to satisfy the higher needs.

Scenario A. Henry the CEO of JackHammer Corp. believes that any act that leads to positive consequences will most likely be repeated. Henry personally sends e-mails to his employees when they perform well commending their efforts. Ron, the CEO of Jeckles Inc. takes his employees off probation early when they perform to his expectations. James, the sales manager of Jenson Corp. often shouts at his employees when they perform poorly. He also fails to appreciate employees when they perform well, which often results in poor performances Which of the following behavioral modification methods does James utilize? A. Termination B. Punishment C. Negative reinforcement D. Positive reinforcement E. Arbitration

B. Punishment Punishment is administering an aversive consequence. Examples include criticizing or shouting at an employee, assigning an unappealing task, and sending a worker home without pay.

42. _____ are specific government organizations in a firm's more immediate task environment. A. Open systems B. Regulators C. Prospectors D. Stakeholders E. Defenders

B. Regulators Regulators are specific government organizations in a firm's more immediate task environment. Regulatory agencies have the power to investigate company practices and take legal action to ensure compliance with laws. The Securities and Exchange Commission is a regulatory agency.

_____ power is held by a manager who has control over the size of an employee's raise. A. Legitimate B. Reward C. Coercive D. Referent E. Expert

B. Reward The leader who has reward power influences others because he or she controls valued rewards; people comply with the leader's wishes to receive those rewards.

A technique for assessing an organization's internal and external environments in order to formulate strategy is called a: A. BCG matrix. B. SWOT analysis. C. benchmarking strategy. D. diversification exercise. E. functional strategy.

B. SWOT analysis. Assessing an organization's strengths, weaknesses, opportunities, and threats to help executives formulate strategy is normally referred to as a SWOT analysis. Strengths and weaknesses refer to internal resources. Opportunities and threats arise in the macroenvironment and competitive environment.

Which of the following will best reduce misperceptions in communication? A. Tailor the message for each group by changing the meaning for each group. B. Say what you don't mean along with what you mean. C. Encourage others to multitask while receiving the message. D. Use only one-way communication for important messages. E. Use silence for emphasis.

B. Say what you don't mean along with what you mean. Tactics to improve communication include ensuring that the receivers attend to the message they are sending, considering the other party's frame of reference, taking concrete steps to minimize perceptual errors, sending consistent messages, and saying not only what you mean but also what you don't mean.

Which of the following is the first major step in the formal control process? A. Comparing performance with standards B. Setting standards C. Taking corrective action D. Developing values E. Measuring performance

B. Setting standards A typical control system has four major steps: setting performance standards, measuring performance, comparing performance against the standards and determining deviations, and taking action to correct problems and reinforce successes.

_____ interventions of organization development relate to organization design, employee involvement, and work design. A. Strategic B. Technostructural C. Human resources management D. Human process E. Operational

B. Technostructural Technostructural interventions are organization development techniques that include relating to organization structure and design, employee involvement, and work design.

Generally, which of the following characteristics contributes to entrepreneurs' success? A. Commitment to work-life balance B. Tolerance of risk and uncertainty C. Discounting of own weaknesses D. Comfort with the status quo E. Obsession with earning money

B. Tolerance of risk and uncertainty Entrepreneurs are more likely to succeed if they have certain characteristics, including tolerance of risk, ambiguity, and uncertainty. They are calculated risk takers and risk managers, tolerant of stress, and able to resolve problems.

Which of the following best describes an ethical perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right? A. Business ethics B. Virtue ethics C. Relativism D. Utilitarianism E. Egoism

B. Virtue ethics Virtue ethics is a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right. Society's rules provide a moral minimum, and then moral individuals can transcend rules by applying their personal virtues such as faith, honesty, and integrity.

Mason Engineering is run in a very traditional way, with experienced top managers making all the decisions and passing them down to lower levels for implementation. Mason can be described as a(n) _____ organization. A. integrated B. centralized C. differentiated D. decentralized E. horizontal

B. centralized In a centralized organization, important decisions usually are made at the top. This is the situation at Mason. In decentralized organizations, more decisions are made at lower levels.

The attitude and behavior patterns that shape people's experience of an organization is called an organizational _____. A. culture B. climate C. environment D. strategy E. adhocracy

B. climate` Organizational climate consists of the patterns of attitudes and behavior that shape people's experience of an organization. In contrast to a culture's deeply held beliefs, values, and so on, an organization's climate can be measured more readily.

In the realm of customer relations, _____ includes continually changing in order to connect with customers, even without waiting for customers to make the first move. A. continuous integration B. continuous improvement C. value chain analysis D. customer exchange E. total quality management

B. continuous improvement A company attains and retains competitive advantage by continuing to improve. This concept called kaizen, or continuous improvement, is an integral part of Japanese operations strategy. In the realm of customer relations, continuous improvement includes continually changing in order to connect with customers, even without waiting for customers to make the first move.

A job _____ refers to the essential tasks, duties, and responsibilities involved in performing a job. A. specification B. description C. design D. title E. validation

B. description Information about the job itself, including the essential tasks, duties, and responsibilities involved in performing the job, is contained in a job description.

A common complaint about leaders, especially those who are newly appointed, is that they lack: A. self-acceptance. B. empathy. C. the ability to receive feedback from subordinates. D. decision-making skills. E. self-control.

B. empathy. A common complaint about leaders, especially newly promoted ones who had been outstanding individual performers, is that they lack what is perhaps the most fundamental of EQ skills: empathy. The issue is not lack of ability to change, but the lack of motivation to change.

The legal concept that an employee may be terminated for any reason is known as: A. plausible termination. B. employment-at-will. C. expatriation. D. memorandum of understanding. E. terminal validity.

B. employment-at-will. The concept that an employee may be fired for any reason is known as employment-at-will or termination-at-will and was upheld in a 1908 Supreme Court ruling.

The organizational pyramid composed of authority levels is commonly called the: A. tactical plan. B. hierarchy. C. strategic map. D. dynamic network. E. strategic plan.

B. hierarchy. The three broad levels of the organizational pyramid are commonly called the hierarchy. The CEO occupies the top position and is the senior member of top management.

Pendant Insurance has strictly defined job responsibilities and lines of communication. In this formal atmosphere, approval for any changes to standing procedures must be made by upper management. Here, the insurance firm has a: A. wide span of control. B. high degree of centralization. C. decentralized authority. D. matrix design. E. flat structure.

B. high degree of centralization. The delegation of responsibility and authority decentralizes decision making. In a centralized organization, important decisions usually are made at the top.

The worst group performance that ruins things for management the most is likely to result from a: A. highly cohesive group with high performance norms. B. highly cohesive group with low performance norms. C. noncohesive group with high performance norms. D. noncohesive group with low performance norms. E. highly cohesive group that avoids establishing performance norms.

B. highly cohesive group with low performance norms. The highest performance occurs when a cohesive team has high performance norms. But if a highly cohesive group has low performance norms, that group will have the worst performance. Noncohesive groups with low-performance norms perform poorly, but they will not ruin things for management as effectively as can cohesive groups with low-performance norms.

path goal theory is concerned with: A. the relationship between the followers' personal goals and the leaders' organizational goals. B. how leaders influence subordinates' perceptions of their work goals and how those goals might be attained. C. the level of participation that a leader might allow a workgroup to assume under varying conditions. D. the personal style of the leader in combination with the maturity level of followers. E. how leaders go about making decisions in order to attain organizational goals.

B. how leaders influence subordinates' perceptions of their work goals and how those goals might be attained. The most comprehensive and generally useful situational model of leadership effectiveness is path-goal theory. Path-goal theory gets its name from its concern with how leaders influence followers' perceptions of their work goals and the paths they follow toward goal attainment.

Group cohesiveness refers in part to: A. how attractive the group is to management. B. how motivated members are to remain in the group. C. the degree to which management influences the group. D. the consistency in quality of the group's performance. E. how homogeneous group members are.

B. how motivated members are to remain in the group. One of the most important properties of a team is cohesiveness. Cohesiveness refers to how attractive the team is to its members, how motivated members are to remain in the team, and the degree to which team members influence one another. In general, it refers to how tightly knit the team is.

Two general types of proactive strategies for influencing an organization's environment are _____ A. dependent strategies and independent strategies. B. independent action and cooperative action. C. cooperative strategies and strategic maneuvering. D. strategic maneuvering and dependent strategies. E. independent action and strategic maneuvering.

B. independent action and cooperative action. Managers and organizations can develop proactive responses aimed at changing the environment. Two general types of proactive responses are independent action and cooperative action.

Management myopia occurs when managers: A. lack motivation to reach their performance targets and in turn find it difficult to motivate subordinates. B. limit their focus to short-term profits at the expense of longer-term strategic obligations. C. find themselves unable to rise beyond a certain level in the organizational hierarchy. D. are promoted beyond their level of competence. E. find it hard to progress within an organization due to corporate downsizing or paring of middle management layers. `

B. limit their focus to short-term profits at the expense of longer-term strategic obligations. Because financial ratios usually are expressed in compressed time horizons (monthly, quarterly, or yearly), they often cause management myopia, which occurs when managers focus on short-term earnings and profits at the expense of their longer-term strategic obligations.

69. An evaluation of the effectiveness and efficiency of various systems within an organization is called a(n) _____ audit. A. human resource B. management C. activity-based D. budget E. six-sigma

B. management Management audits are a means of evaluating the effectiveness and efficiency of various systems within an organization, from social responsibility programs to accounting control. Management audits may be external or internal.

A clear and concise expression of what an organization does, whom it does it for, its basic goods or services, and its values is known as its _____. A. vision B. mission C. objective D. policy E. business definition

B. mission The mission is a clear and concise expression of the basic purpose of an organization. It describes what the organization does, whom it does it for, its basic good or service, and its values.

An interference in the communication process that blocks perfect understanding is referred to as: A. distortion. B. noise. C. pitch. D. infiltration. E. clutter.

B. noise. The communication process often is hampered by noise, or interference in the system, that blocks perfect understanding. Noise could be anything that interferes with accurate communication: ringing telephones, thoughts about other things, or simple fatigue or stress.

Group members agree on their shared goals and standards, and closer relationships develop in _____ process of group development. A. storming B. norming C. forming D. performing E. achieving

B. norming If groups are to develop successfully, they will engage in various processes. One of these processes is norming, where group members agree on their shared goals and norms, and closer relationships develop.

Corporate social responsibility is the _____. A. ethical system stating that all people should uphold certain values that society needs to function B. obligation toward society assumed by business C. system that defines acceptable behavior as that which maximizes consequences for the individual D. ideology that the greatest good for the greatest number should be the overriding concern of decision makers E. maximization of shareholder wealth

B. obligation toward society assumed by business Corporate social responsibility is the obligation toward society assumed by business. It consists broadly of policies and practices that reflect business responsibility for some of the wider societal good.

The theory that examines follower and environmental characteristics such as locus of control, ability, and formal authority system is the ____ theory. A. contingency plan B. path-goal C. Hersey and Blanchard's D. leader-member exchange E. Fiedler's contingency

B. path-goal Path-goal theory specifies which follower and environmental characteristics are important. There are three key follower characteristics: authoritarianism, locus of control, and ability. There are also three environmental factors: tasks, formal authority system, and primary work group.

Administering an aversive consequence is referred to as: A. positive reinforcement. B. punishment. C. extinction. D. negative reinforcement. E. arbitration.

B. punishment. Punishment is administering an aversive consequence. Examples include criticizing or shouting at an employee, assigning an unappealing task, and sending a worker home without pay.

Strategic leadership primarily gives: A. support and corrective feedback. B. purpose and meaning to organizations. C. financial support for plans. D. guidance and prepares followers. E. day-to-day coaching.

B. purpose and meaning to organizations Strategic leadership gives purpose and meaning to organizations. Strategic leadership involves anticipating and envisioning a viable future for the organization, and working with others to initiate changes that create such a future

Making a decision by accepting the first option that is minimally acceptable or adequate is referred to as _____. A. optimizing B. satisficing C. maximizing D. minimizing E. framing

B. satisficing Satisficing is choosing the first option that is minimally acceptable or adequate. Satisficing means that a search for alternatives stops after finding one that is okay.

When individuals' interests, values, and cultures act as filters to distort, block, or select what they see and interpret, they tend to _____ their different colleagues. A. differentiate B. stereotype C. manipulate D. accommodate E. simulate

B. stereotype When stereotyping, people learn to interpret the world in a certain way based on their backgrounds and experiences. Their interests, values, and cultures filter, distort, block, and select what they perceive and how they evaluate it.

Employees who retain their jobs after downsizing often experience heavier workloads and loss of organizational commitment and become risk-averse, which are usually symptoms of ____. A. unemployment anxiety B. survivor's syndrome C. downsizing disorientation D. downsizing anxiety E. employee depression

B. survivor's syndrome Those who survive downsizing and keep their jobs tend to exhibit survivor's syndrome. They struggle with heavier workloads; wonder who will be next to go; try to figure out how to survive; lose commitment to the company and faith in their bosses; and become narrow-minded, self-absorbed, and risk-averse. As a consequence, morale and productivity usually drop.

A _____ helps clarify the key technologies upon which an organization depends, often in terms of their competitive value. A. product champion B. technology audit C. situational analysis D. technical innovator E. technological record

B. technology audit A technology audit helps clarify the key technologies on which an organization depends. The most important dimension of a new technology is its competitive value. One technique for measuring competitive value categorizes technologies as emerging, pacing, key, and base.

The three levels of the organizational hierarchy include: A. top, first-line, and final levels. B. top, middle, and operational levels. C. functional, divisional, and matrix levels. D. top, strategic, and lower levels. E. top, operational, and frontline levels.

B. top, middle, and operational levels. The three broad levels of the organizational pyramid is commonly called the hierarchy. They are top management, middle management, and the operational level.

Many individuals and companies are plagued by the ____, the belief that multiple objectives are mutually exclusive. A. problem of the if B. tyranny of the or C. timing of the when D. genius of the and E. threat of the what

B. tyranny of the or Many companies and individuals are plagued by the tyranny of the or. This refers to the belief that things must be either A or B and cannot be both. Examples include beliefs that you must choose either change or stability, be conservative or bold, have control and consistency or creative freedom. Such beliefs, that only one goal but not another can be attained, often are invalid and certainly are unnecessarily constraining.

As the new project manager of a call center, Phil notes that the quality of customer service at the center is not satisfactory. In his estimation, the current service is not what it should or could be. By making this comparison, Phil has: A. started a service initiative. B. uncovered a performance gap. C. performed a force-field analysis. D. discovered a need for job posting. E. identified adapters.

B. uncovered a performance gap. A performance gap is the difference between actual performance and the performance that should or could exist. As an impetus for change, a performance gap can apply to the organization as a whole; it also can apply to departments, groups, and individuals

To be world class, an organization should: A. strive for a controlled improvement. B. use the best and latest knowledge and ideas. C. be driven by business-as-usual goals. D. solely focus on beating the competition. E. continue to use the methods, systems, and cultures of the past.

B. use the best and latest knowledge and ideas. Being world class requires applying the best and latest knowledge and ideas and having the ability to operate at the highest standards of any place anywhere. Thus, becoming world class does not mean merely improving. It means becoming one of the very best in the world at what you do.

Which of the following is an example of one-way communication? A. A telephone conversation B. A videoconference C. A newscast D. A reading group E. An e-mail

C. A newscast In one-way communication, information flows in only one direction, from the sender to the receiver, with no feedback loop. In this case, information flows from the reporter to the viewer, but the viewer has no chance to provide feedback.

Which of the following is considered a disability under ADA? A. Chicken pox B. Sunburn C. Alcoholism D. Sinus infection E. Influenza

C. Alcoholism Examples of disabilities include those resulting from orthopedic, visual, speech, and hearing impairments; cerebral palsy; epilepsy; multiple sclerosis; HIV infections; cancer; heart disease; diabetes; mental retardation; psychological illness; specific learning disabilities; drug addiction; and alcoholism.

_____ refers to the process of comparing an organization's practices and technologies with those of other companies. A. Scenario planning B. Forecasting C. Benchmarking D. Environmental scanning E. Strategic maneuvering

C. Benchmarking Benchmarking refers to the process of comparing an organization's practices and technologies with those of other companies. To accomplish this, a benchmarking team would collect information on its own company's operations and those of the other firm to determine gaps.

Which of the following types of power is most dominant when a leader utilizes his or her ability to control punishments? A. Legitimate power B. Reward power C. Coercive power D. Referent power E. Expert power

C. Coercive power A leader with coercive power has control over punishments; people comply to avoid those punishments.

Who among the following belongs to the middle managerial level? A. Strategic manager B. Chief financial officer C. Departmental head D. Sales manager E. Office supervisor

C. Departmental head The second broad level of the organization is middle management. At this level, managers are in charge of plants or departments.

Which of the following is an appropriate guideline to follow when conducting performance appraisals with an underperforming employee? A. For legal reasons, avoid documenting the process. B. Summarize the employee's performance with generalizations. C. Describe specific expectations and standards. D. Avoid getting into discussion of solutions to any problems. E. Do not raise issues and questions.

C. Describe specific expectations and standards. Guidelines for conducting a performance appraisal with an employee who is performing below acceptable standards include summarizing the employee's specific performance, describing the expectations and standards by being specific, discussing solutions to the problem, documenting the meeting, and raising issues and questions.

Phoenix Paint, a manufacturer of designer indoor paint, is in the process of eliminating some positions in its organization. Its management has carefully analyzed all of the jobs and strategically determined which to keep, with an eye toward protecting its most talented people. Which of the following refers to what Phoenix is doing in this scenario? A. Standardizing B. Centralizing C. Downsizing D. Benchmarking E. Globalizing

C. Downsizing Downsizing is the planned elimination of positions or jobs. Common approaches to downsizing include eliminating functions, hierarchical levels, or even whole units.

Which of the following involves eliminating functions, hierarchical levels, or even whole units? A. Reengineering B. Domain selection C. Downsizing D. Buffering E. Benchmarking

C. Downsizing Downsizing is the planned elimination of positions or jobs. Common approaches to downsizing include eliminating functions, hierarchical levels, or even whole units.

Which of the following is one of the important components of the communication process? A. Enquiry B. Instrumentality C. Feedback D. Expectancy E. Modulation

C. Feedback The sender has a meaning he or she wishes to communicate and encodes the meaning into symbols. Then the sender transmits, or sends, the message through some channel, such as a verbal or written medium. The receiver decodes the message (e.g., reads it) and attempts to interpret the sender's meaning. The receiver may provide feedback to the sender by encoding a message in response to the sender's message.

____ is the introduction of new goods and services. A. Collaboration B. Vertical integration C. Innovation D. Adaptation E. Introspection

C. Innovation Innovation is the introduction of new goods and services. A firm must adapt to changes in consumer demands and to new competitors.

Which of the following is an advantage of offshoring? A. It increases the wage costs, increasing the benefits of offshoring. B. It increases the energy costs, increasing the benefits of offshoring. C. It helps to find talent which is in short supply in the home country. D. It helps remove wage stagnation of workers and enables a steady increase. E. It is cheaper for managers to offshore.

C. It helps to find talent which is in short supply in the home country. Offshoring is a continuing trend because in some cases it delivers advantages other than cost. For some types of work, companies use offshoring as a way to find talent that is in short supply at home.

_____ technologies have proved effective, but they also provide a strategic advantage because not everyone uses them. A. Base B. Emerging C. Key D. Elevated E. Pacing

C. Key Key technologies have proved effective, but they also provide a strategic advantage because not everyone uses them. Knowledge and dissemination of these technologies are limited, and they continue to provide some advantages.

Which of the following is a symptom of an out-of-control company? A. Flexible work hours for employees B. Highly challenging organizational goals C. Lack of periodic reviews D. Highly rigid work culture E. Lack of new employees

C. Lack of periodic reviews Control is defined as any process that directs the activities of individuals toward the achievement of organizational goals. Lack of periodic reviews is one of the symptoms of an out-of-control organization.

Which of the following is an operation that strives to achieve the highest possible productivity and total quality by eliminating unnecessary steps in the production process and continually striving for improvement? A. Time-based competition B. Total quantity management C. Lean manufacturing D. Mass customization E. Concurrent engineering

C. Lean manufacturing Lean manufacturing is based on a commitment to making an operation both efficient and effective; it strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.

Using bribery as a business tactic may result in fines for U.S. firms. Which of the following types of environmental forces at work does this reflect? A. Competitive B. Economic C. Legal D. Technological E. Demographic

C. Legal An example of laws and regulations in the macroenvironment is the U.S. government's standards regarding bribery. In some countries, bribes and kickbacks are common and expected ways of doing business, but for U.S. firms they are illegal practices.

Beth hired Bahman, who belongs to a minority group, to work in the accounting department, since he was highly skillful. However, the other workers resented Bahman's presence and excluded him from the work group. Bahman had difficulty performing, since he was not given the needed information to work expediently. Which of the following challenges of a diversified workforce is occurring in this scenario? A. Gender issues B. Language barrier C. Lower cohesiveness D. Communication overload E. Lack of flexibility

C. Lower cohesiveness Diversity can create a lack of cohesiveness, defined as how tightly knit the group is and the degree to which group members perceive, interpret, and act on their environment in similar or mutually agreed-upon ways. Cohesiveness is lower because of differences in language, culture, and/or experience.

_____ occurs when companies move jobs to another country, typically where wages are lower. A. Franchising B. Outsourcing C. Offshoring D. Expatriation E. Proscription

C. Offshoring Offshoring occurs when companies move jobs to another country, typically where wages are lower. This practice does not necessarily require using an outside provider.

Which of the following is the stage of the HR planning process in which the organization enacts specific human resources activities, such as recruitment and training? A. Planning B. Controlling C. Programming D. Directing E. Forecasting

C. Programming In the second stage of the HR planning process, the organization conducts programming of specific human resources activities, such as recruitment, training, and layoffs. In this stage, the company's plans are implemented.

Which of the following traits distinguishes effective leaders from other people? A. Materialism B. Education C. Self-confidence D. Command-and-control attitude E. Introversion

C. Self-confidence One of the leadership traits is self-confidence. Self-confidence is important because the leadership role is challenging, and setbacks are inevitable. A self-confident leader overcomes obstacles, makes decisions despite uncertainty, and instills confidence in others.

Which of the following change-specific reasons for resistance is likely to occur when people think a change will cause them to lose something of value? A. Misunderstanding B. Management tactics C. Self-interest D. Surprise E. Different assessments

C. Self-interest Change-specific reasons for resistance include self-interest. Most people care less about the organization's best interest than they do about their own best interests. They will resist a change if they think it will cause them to lose something of value, like a job or a feeling of competence.

Which of the following is an advantage of a multinational model? A. Manufacturing costs are low. B. Launching coordinated global attacks against competitors is easy. C. Subsidiaries can customize products according to local preferences. D. There is no chance of duplication of efforts. E. Realizing scale economies from centralized manufacturing facilities results in standardized production.

C. Subsidiaries can customize products according to local preferences. Each multinational subsidiary can customize its products and strategies according to the tastes and preferences of local consumers. A major disadvantage of the multinational form is higher manufacturing costs and duplication of effort.

Which of the following statements about group norms is true? A. They are defined by the board of an organization. B. They are usually negative and destructive to group cohesiveness. C. They are shared beliefs about how the group members should think and behave. D. They are attitudes that support accomplishing the tasks of an organization. E. They will hinder team performance unless they are put in writing.

C. They are shared beliefs about how the group members should think and behave. Norms are shared beliefs about how people should think and behave. From the organization's standpoint, norms can be positive or negative. In some teams, everyone works hard; in other groups, employees are opposed to management and do as little work as possible. Some groups develop norms of taking risks, others of being conservative.

_____ is the ethical system stating that all people should uphold certain values that society needs to function. A. Relativism B. Egoism C. Universalism D. Ethnocentrism E. Utilitarianism

C. Universalism Universalism states that all people should uphold certain values, such as honesty, that society needs to function. Universal values are principles so fundamental to human existence that they are important in all societies, such as rules against murder, deceit, torture, and oppression.

According to the Americans with Disabilities Act, a disability is best defined as: A. a physical impairment resulting from a hazardous work environment. B. a disabling condition that results in a lower life expectancy. C. a physical or mental impairment that substantially limits a major life activity. D. an inability to perform a particular task due to lack of knowledge and experience. E. the contraction of a disease that is contagious or epidemic.

C. a physical or mental impairment that substantially limits a major life activity. The Americans with Disabilities Act (ADA) defines a disability as a physical or mental impairment that substantially limits one or more major life activities. Examples of such physical or mental impairments include those resulting from conditions such as orthopedic, visual, speech, and hearing impairments.

Special effort to recruit and hire qualified members of groups that have been discriminated against in the past is called ____. A. recrimination B. proactive recruitment C. affirmative action D. the quid pro quo system E. positive-effect recruitment

C. affirmative action To correct the past exclusion of women and minorities, companies introduced affirmative action, which includes special efforts to recruit and hire qualified members of groups that have been discriminated against in the past.

Noise in communication is: A. additional information that is not required. B. any irrelevant gossip that can be destructive and unnecessary. C. anything that interferes and blocks perfect understanding. D. an important way to draw attention of the receiver. E. anything that causes a receiver to seek information elsewhere.

C. anything that interferes and blocks perfect understanding. The communication process often is hampered by noise, or interference in the system, that blocks perfect understanding. Noise could be anything that interferes with accurate communication: ringing telephones, thoughts about other things, or simple fatigue or stress

aking ethical decisions takes moral _____ which helps realize that an issue has ethical implications. A. certainty B. actionability C. awareness D. judgment E. character

C. awareness Making ethical decisions takes moral awareness (realizing the issue has ethical implications), moral judgment (knowing what actions are morally defensible), and moral character (the strength and persistence to act in accordance with your ethics despite the challenges).

Using budgeting, statistical reports, and performance appraisals to regulate behavior and results is considered a component of ____. A. clan control B. market control C. bureaucratic control D. financial audits E. management audits

C. bureaucratic control Bureaucratic control is the use of rules, regulations, and formal authority to guide performance. It includes such items as budgets, statistical reports, and performance appraisals to regulate behavior and results.

Generally, the first formal planning step is to: A. secure financing. B. write a business plan. C. conduct an opportunity analysis. D. get others to support one's ideas. E. hire the right people.

C. conduct an opportunity analysis. The first formal planning step is to do an opportunity analysis. An opportunity analysis, or opportunity assessment plan, focuses on the opportunity, not the entire venture.

Jupiter Dollar Mart plans to open five new stores before 2015. However, if the economy does not improve, and if consumer confidence does not rise as hoped, it might open just two stores. This backup plan is an example of a: A. dominant plan. B. single-use plan. C. contingency plan. D. standing plan. E. tactical plan.

C. contingency plan. Contingency plans might be referred to as "what if" plans. They include sets of actions to be taken when a company's initial plans have not worked well or if events in the external environment require a sudden change.

When employees receive less or incorrect information about an organizational change or its implementation, they are likely to resist the change due to ____. A. self-interest B. surprise C. different assessments D. peer pressure E. inertia

C. different assessments Change-specific reasons for resistance include different assessments. Employees receive different and usually less information than management receives. Even within top management ranks, some executives know more than others do. Such discrepancies cause people to develop different assessments of proposed changes. Some may be aware that the benefits outweigh the costs, while others may see only the costs and not the advantages.

Entrepreneurs start their own firms because they: A. don't have to work as hard. B. can do as they please. C. dislike the bureaucracy in corporate life. D. are on a quest for power. E. like to manipulate and control people.

C. dislike the bureaucracy in corporate life. When employed people believe they will not receive a promotion or are frustrated by bureaucracy or other features of corporate life, they may quit and become entrepreneurs.

A set of leader characteristics that reflect a high level of effort and a high need for achievement is identified as ____. A. vision B. integrity C. drive D. charisma E. power

C. drive One of the leadership traits is drive. Drive refers to a set of characteristics that reflect a high level of effort, including high need for achievement, constant striving for improvement, ambition, energy, tenacity (persistence in the face of obstacles), and initiative.

ris Corp. is developing a new retina scanner locking system that is still under development and is yet to be approved. In this case, Iris Corp.'s product is an example of a(n) _____ technology. A. base B. key C. emerging D. improved E. pacing

C. emerging Emerging technologies are still under development and thus are unproved. They may, however, significantly alter the rules of competition in the future. Since the company's new technology is still under development it is categorized as an emerging technology.

Exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are all methods of: A. identifying lucrative consumers on a global scale. B. operating a transnational business. C. entering overseas markets. D. optimizing global profit. E. reducing costs.

C. entering overseas markets When considering global expansion, international managers must decide on the best means of entering an overseas market. The five basic ways to expand overseas are exporting, licensing, franchising, entering into a joint venture with a host-country company, and setting up a wholly owned subsidiary in the host country.

A major disadvantage of operating a wholly owned subsidiary is that: A. a loss of control over technology is likely to occur. B. a wholly owned subsidiary offers too much flexibility over operations. C. high costs and risk are associated with this type of operation. D. overseas consumers are often resentful of foreigners. E. host countries can impose higher tariffs on the firm.

C. high costs and risk are associated with this type of operation. Establishing a wholly owned subsidiary, which is an independent company owned by the parent corporation, is the most costly method of serving an overseas market. Companies that use this approach must bear the full costs and risks associated with setting up overseas operations.

Work team diversity promotes creativity and innovation because people with different backgrounds: A. value creativity and innovation. B. require creative efforts to bring out their productivity. C. hold different perspectives on issues. D. are more homogeneous. E. increase the likelihood of groupthink.

C. hold different perspectives on issues. Work team diversity promotes creativity and innovation because people from different backgrounds hold different perspectives.

The most common negative effect of diversity is: A. lowered organizational flexibility. B. decreased ability to respond to consumer preferences. C. increased communication difficulty. D. enhanced cohesiveness. E. decreased innovation and creativity.

C. increased communication difficulty. Perhaps the most common negative effect of diversity is communication problems, which include misunderstandings, inaccuracies, inefficiencies, and slowness

In the process of motivating change, moving refers to: A. the management's realization that its current practices are no longer appropriate. B. strengthening the new behaviors that support the change. C. instituting the change, which begins with establishing a vision. D. the process of identifying performance gaps. E. the process of breaking from the old ways of doing things.

C. instituting the change, which begins with establishing a vision. The step of moving to institute the change begins with establishing a vision of where the company is heading. The vision can be realized through strategic, structural, cultural, and individual change.

The reward a worker derives directly from performing the job itself is referred to as a(n) _____ reward. A. extrinsic B. high-level C. intrinsic D. low-level E. external

C. intrinsic An intrinsic reward is a reward a person derives directly from performing the job itself. An interesting project, an intriguing subject that is fun to study, a completed sale, and the discovery of the perfect solution to a difficult problem all can give people the feeling that they have done something well.

A disadvantage of entering global competition through a joint venture is that: A. it often aggravates political issues and incurs protectionist measures. B. the partner's ideas about local tastes and preferences may interfere with standardized operations. C. it involves the risk of losing control over technology to the partner. D. it is the most expensive and risky option for entering a global market. E. the local partner should bear most of the risks and costs involved.

C. it involves the risk of losing control over technology to the partner. The disadvantages of joint ventures include running the risk of losing control over its technology to the venture partner, as well as conflict over who controls what within a joint venture, which causes many joint ventures to fail.

A manager's ability to stimulate people to be high performers is referred to as _____. A. planning B. staffing C. leading D. controlling E. monitoring

C. leading Leading is stimulating people to be high performers. It includes motivating and communicating with employees, individually and in groups.

Control based on the use of pricing mechanisms and economic information to regulate activities within organizations is referred to as _____ control. A. clan B. feedback C. market D. feedforward E. bureaucratic

C. market 'Market control involves the use of pricing mechanisms to regulate activities in organizations as though they were economic transactions. Business units may be treated as profit centers and trade resources (services or goods) with one another via such mechanisms. Managers who run these units may be evaluated on the basis of profit and loss.

An organization composed of dual relationships in which some employees report to two superiors is a _____ organization. A. product B. flat C. matrix D. process E. customer

C. matrix A matrix organization is one composed of dual reporting relationships in which some employees report to two superiors: a functional manager and a divisional manager.

In monolithic organizations, ____. A. minorities are employed in all job levels B. minority members identify highly with the company C. minority members must adopt the norms of the majority to survive D. employee population is relatively diverse E. discrimination and prejudice are almost nonexistent

C. minority members must adopt the norms of the majority to survive A monolithic organization is highly homogeneous in terms of its employee population. Minority group members must adopt the norms of the majority to survive.

Shared beliefs about how group members should think and behave are referred to as ____. A. values B. roles C. norms D. rules E. policies

C. norms Norms are shared beliefs about how people should think and behave. From the organization's standpoint, norms can be positive or negative. In some teams, everyone works hard; in other groups, employees are antimanagement and do as little work as possible. Some groups develop norms of taking risks, others of being conservative.

36. Organizations are _____ systems, which means that they are affected by and in turn affect their external environments. A. input B. output C. open D. closed E. social

C. open Organizations are open systems; that is, they are affected by and in turn affect their external environments. For example, they take in inputs from their environment and use them to create products and services that are outputs to their environment.

Purple Technology is a communication and information technology corporation. The company makes it a point to stress to its employees that innovation is its core strength. The employees even get an hour a day to brainstorm and come up with out-of-the-box ideas. This highlights the _____ of the company. A. cooperative strategies B. external environment C. organization culture D. competitive pacification E. domain selection

C. organization culture The organization culture is the set of important assumptions about the organization and its goals and the practices that members of the company share. It is a system of shared values about what is important and beliefs about how the world works. In this way, a company's culture provides a framework that organizes and directs people's behavior on the job.

Strategic, technostructural, human resources management, and human process are types of: A. awareness building techniques. B. organization behavior modification approaches. C. organization development interventions. D. total quality management systems. E. affirmative action programs.

C. organization development interventions. The basic types of organization development (OD) techniques are strategic interventions, technostructural interventions, human resources management interventions, and human process interventions.

Product innovation is a change in the: A. way outputs are produced. B. way the organization creates and delivers value. C. outputs the organization produces. D. value of the product alone. E. product line of the organization.

C. outputs the organization produces Product innovation is a change in the outputs (goods or services) the organization produces. If BP's research into biofuels resulted in a new kind of fuel to sell, this would be an example of product innovation.

According to Maslow's need hierarchy, ____. A. several different needs can be operating at once B. higher-level needs are more important than lower-level needs C. people are motivated to satisfy the lower needs before the higher needs D. once a need is satisfied, it becomes a powerful motivator E. social needs include status, recognition, and self-esteem

C. people are motivated to satisfy the lower needs before the higher needs According to Maslow, people are motivated to satisfy the lower needs before they try to satisfy the higher needs. In today's workplace, physiological and safety needs generally are well satisfied, making social, ego, and self-actualization needs important. Once a need is satisfied, it is no longer a powerful motivator.

The human resources planning process occurs in three stages: A. planning, executing, and delivering. B. hiring, training, and firing. C. planning, programming, and evaluating. D. planning, delivering, and appraising. E. recruiting, screening, and hiring.

C. planning, programming, and evaluating. The HR planning process occurs in three stages: planning, programming, and evaluating. First, HR managers need to know the organization's business plans to ensure that the right number and types of people are available

Collaborating with other countries in trade: A. leads to increased prices. B. narrows down the market for managers. C. raises the standards of living. D. leads to reduced efficiency. E. causes conspiracy between cultures.

C. raises the standards of living. Because trade allows each country to obtain more efficiently what it cannot as easily produce on its own, it lowers prices overall and makes more goods more widely available. This in turn raises living standards—and may broaden the market for a manager's own products.

The technology life cycle begins with the: A. bringing together of resources and entrepreneurial initiative. B. refinement and evolution of a new technology. C. recognition of a need coupled with potential to satisfy that need through science. D. decline in usefulness or practicality of a competing product, process, or service. E. recognition that a new technology is economically practical.

C. recognition of a need coupled with potential to satisfy that need through science. Technological innovations typically follow a relatively predictable pattern called the technology life cycle. The cycle begins with the recognition of a need and a perception of a means by which the need can be satisfied through applied science or knowledge.

The state that exists when the probability of success is less than 100 percent and losses may occur is called _____. A. conflict B. probability analysis C. risk D. certainty E. policy formulation

C. risk Risk exists when the probability of an action being successful is less than 100 percent and losses may occur. If a decision is a wrong one, the person may lose money, time, reputation, or other important assets.

Scenario C. Presto Inc. is currently in need of a new technology to improve efficiency. The question is whether it should acquire the technology from an outside source or develop it itself. The CEO of Presto Inc. is focused on comparing the company's current technology with that of other organizations. However, the company's CIO is concentrating more on what can be done in the future as well as on the new technologies being developed. The CIO of Presto Inc. is concentrating more on what can be done in the future and on the new technologies being developed. This is known as ____. A. licensing B. benchmarking C. scanning D. contract development E. technology trading

C. scanning Whereas benchmarking focuses on what is being done currently, scanning focuses on what can be done and what is being developed. In other words, benchmarking examines key and perhaps some pacing technologies, whereas scanning seeks out pacing and emerging technologies—those just being introduced and still in development. The CIO focuses on

The skills, knowledge, abilities, and other characteristics needed to perform a job are detailed in a job: A. description. B. portfolio. C. specification. D. profile. E. design.

C. specification. A job analysis describes, in part, the skills, knowledge, abilities, and other characteristics needed to perform the job. This is called the job specification.

A set of procedures for making decisions about an organization's long-term goals and strategies is known as: A. environmental scanning. B. strategic maneuvering. C. strategic planning. D. tactical planning. E. operational planning.

C. strategic planning. Strategic planning involves making decisions about an organization's long-term goals and strategies. Strategic plans have a strong external orientation and cover major portions of the organization.

Emotional intelligence can best be defined as: A. the ability to perform a specialized task involving a particular method or process. B. the ability to identify and resolve problems for the benefit of the organization and its members. C. the skills of understanding oneself, managing oneself, and dealing effectively with others. D. the skill of monitoring efforts and making the necessary changes. E. the skill to lead, motivate, and communicate effectively with others.

C. the skills of understanding oneself, managing oneself, and dealing effectively with others. Emotional intelligence, or "EQ," includes the skills of understanding oneself, managing oneself (dealing with emotions, making good decisions, seeking and using feedback, and exercising self-control), and dealing effectively with others (listening, showing empathy, motivating, and leading).

A leader who manages through connections, using legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered, is best known as a _____ leader. A. transformational B. situational C. transactional D. charismatic E. democratic

C. transactional Transactional leaders view management as a series of transactions in which they use their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered. Unlike transformational leadership, transactional leadership is dispassionate

Scanning focuses on: A. improvising base technologies. B. current activities and technologies. C. what can be done and what is being developed. D. comparing the competitive advantages of two companies. E. clarifying the key technologies on which an organization depends.

C. what can be done and what is being developed. Scanning focuses on what can be done and what is being developed. In other words, it seeks out pacing and emerging technologies, those just being introduced and still in development.

When a company sets up its own overseas operations, independent of foreign partners or governments, it has established a(n): A. purely global strategy. B. competitive venture. C. wholly owned subsidiary. D. independent venture. E. multinational contract.

C. wholly owned subsidiary. Establishing a wholly owned subsidiary, which is an independent company owned by the parent corporation, is the most costly method of serving an overseas market. Companies that use this approach must bear the full costs and risks associated with setting up overseas operations.

Which of the following is true of globalization? A. Only small companies are affected by it. B. Only large companies are affected by it. C. A company's talent should come only from within the country. D. A company's talent can come from anywhere. E. The global marketplace is stable and unchanging.

D. A company's talent can come from anywhere. Globalization affects small companies as well as large. Many small companies export their goods. Many domestic firms assemble their products in other countries. Globalization means that a company's talent can come from anywhere

Which of the following is the richest medium for communication? A. A telephone conversation B. An e-mail report C. A text message D. A face-to-face meeting E. A newsletter

D. A face-to-face meeting The richest media are more personal than technological, provide quick feedback, allow lots of descriptive language, and send different types of cues. Thus face-to-face communication is the richest medium because it offers a variety of cues in addition to words: tone of voice, facial expression, body language, and other nonverbal signals. It affords more opportunity for the receiver to give feedback to and ask questions.

Which of the following is a disadvantage of the matrix design? A. Decision making is decentralized. B. Resource utilization is inefficient. C. There is low flexibility. D. Additional time is required for meetings and coordination. E. A single head has to overlook multiple divisions.

D. Additional time is required for meetings and coordination. According to Table 8.2, the matrix organization has a number of disadvantages, including that additional time is required for meetings and other communications to coordinate work.

Liz, a new manager at a company, has been asked to focus on the competitive environment of the organization. Which of the following is a factor Liz should focus on? A. Government legislation B. Culture C. Demographics D. Buyers E. Technology

D. Buyers The competitive environment is composed of the firm and its rivals, suppliers, customers (buyers), new entrants, and substitute or complementary products. At the more general level is the macroenvironment, which includes legal, political, economic, technological, demographic, and social and natural factors that generally affect all organizations.

Which of the following decisions is likely to be a programmed decision? A. Decisions about diversification into new products and markets B. Decisions with uncertainty regarding cause-and-effect relationships C. Decisions about reorganization of state government agencies D. Decisions regarding periodic reorders of inventory E. Decisions involving the purchase of experimental equipment

D. Decisions regarding periodic reorders of inventory Programmed decisions have been encountered and made before. They have objectively correct answers and can be solved by using simple rules, policies, or numerical computations. Decisions about periodic reorder of inventory are examples of programmed decisions.

According to Maslow, which of the following needs includes the need for achievement, freedom, and recognition? A. Physiological B. Self-actualization C. Safety D. Ego E. Social

D. Ego In Maslow's need hierarchy, ego needs include independence, achievement, freedom, status, recognition, and self-esteem

_____ occurs when an enterprising individual pursues a lucrative opportunity. A. Bootlegging B. Franchising C. Intrapreneurship D. Entrepreneurship E. Business incubation

D. Entrepreneurship Entrepreneurship occurs when an enterprising individual pursues a lucrative opportunity. To be an entrepreneur is to initiate and build an organization rather than being only a passive part of one.

Which of the following statements is true regarding Maslow's need hierarchy? A. It states that several different needs tend to be operating at once. B. It states that higher needs need to be satisfied before lower needs. C. It is a complex and an accurate theory of human motivation. D. It holds that people satisfy their needs in a specific order. E. It holds that once a need is satisfied, it becomes a powerful motivator.

D. It holds that people satisfy their needs in a specific order. According to Maslow, people are motivated to satisfy the lower needs before they try to satisfy the higher needs. Maslow's need hierarchy illustrates his conception of people satisfying their needs in a specified order, from bottom to top.

Which of the following statements about six sigma is true? A. The system was developed at Ford during the 1970s. B. The lower the sigma number, the lower the level of defects. C. It is designed merely to reduce product defects. D. It indicates how often defects in a process are likely to occur. E. Six sigma always improves the bottom line.

D. It indicates how often defects in a process are likely to occur. Six sigma was developed at Motorola in the late 1980s and is designed to reduce defects in all organization processes—not just product defects but anything that may result in customer dissatisfaction. The system indicates how often defects in a process are likely to occur. The lower the sigma number, the higher the level of variation or defects. Six sigma has come under criticism for not always delivering business results. One likely reason why six sigma doesn't always improve the bottom line is possibly that it focuses only on how to eliminate defects in a process, not whether the process is the best one for the organization.

Achievement, affiliation, personalized power, and socialized power are all components of: A. the ERG theory. B. the path-goal theory. C. Maslow's need hierarchy. D. McClelland's needs theory. E. Alderfer's needs theory.

D. McClelland's needs theory. According to McClelland, three needs are most important for managers: the need for achievement, the need for affiliation, and the need for power. The need for power is a desire to influence or control other people. This need can be a negative, personalized power, or positive, socialized power.

Which of the following types of resistance to change is likely to result when employees do not see how the change fits with the firm's strategy or its advantage over current practices? A. Surprise B. Timing C. Inertia D. Misunderstanding E. Self-interest

D. Misunderstanding Change-specific reasons for resistance include misunderstanding. Even when management proposes a change that will benefit everyone, people may resist because they don't fully understand it. People may not see how the change fits with the firm's strategy, or they simply may not see the change's advantage over current practices.

Which of the following is true about resistance to change? A. General reasons for resistance to change include self-interest, misunderstanding, and management tactics. B. Usually managers tend to overestimate the amount of resistance they will encounter. C. All employees of an organization often tend to show the same level of resistance to change. D. People at all levels of their organizations, from entry-level to executives, resist change. E. Change-specific reasons for resistance to change include peer pressure, surprise, and timing.

D. People at all levels of their organizations, from entry-level to executives, resist change. Some people resist change more than others, but managers tend to underestimate the amount of resistance they will encounter. People at all levels of their organizations, from entry-level workers to top executives, resist change.

Which level of the pyramid of global corporate social responsibility and performance represents a company's efforts to be a good global corporate citizen, such as supporting community programs? A. Economic responsibility B. Legal responsibility C. Ethical responsibility D. Philanthropic responsibility E. Financial responsibility

D. Philanthropic responsibility Philanthropic responsibilities are behaviors and activities that society finds desirable and that the values of the business support. Examples include supporting community projects and making charitable contributions.

Which of the following sources of power is most dominant when a leader is followed due to his or her charisma? A. Legitimate power B. Reward power C. Coercive power D. Referent power E. Expert power

D. Referent power The leader with referent power has personal characteristics that appeal to others; people comply because of admiration, personal liking, a desire for approval, or a desire to be like the leader. For example, young, ambitious managers might emulate the work habits and personal style of a successful, charismatic executive.

Which of the following techniques helps managers listen effectively? A. Filtering B. Introspecting C. Evaluating D. Reflecting E. Perceiving

D. Reflecting A basic technique called reflection will help a manager listen effectively. Reflection is a process by which a person states what he or she believes the other person is saying. This technique places a greater emphasis on listening than on talking.

Which of the following forms the highest level of needs in Maslow's need hierarchy? A. Social B. Physiological C. Ego D. Self-actualization E. Safety

D. Self-actualization According to Figure 13.3, self-actualization, which involves realizing one's full potential, is at the top of Maslow's need hierarchy. According to Maslow, people are motivated to satisfy the lower needs before they try to satisfy the higher needs.

Which of the following best describes strategic vision? A. A set of procedures for translating broad strategic goals and plans into specific goals and plans B. A narrative that describes a particular set of future conditions C. A set of practices aimed at discovering and harnessing an organization's intellectual resources D. The long-term direction and strategic intent of a company E. The action by which a business competes in a particular industry or market

D. The long-term direction and strategic intent of a company The strategic vision points to the future; it provides a perspective on where the organization is headed and what it can become. Ideally, the vision statement clarifies the long-term direction of the company and its strategic intent.

The primary objective of an entrepreneurial venture is to: A. provide non-profit services. B. create a long term relationship with an investment banking firm. C. reduce the amount of dividends paid. D. acquire growth and high profitability. E. increase the social capital.

D. acquire growth and high profitability. An entrepreneurial venture has growth and high profitability as primary objectives. Entrepreneurs manage aggressively and develop innovative strategies, practices, and products.

While competitors understandably are reluctant to share their secrets, information trading for _____ is not uncommon and can prove highly valuable. A. vertical integration B. technological followership C. corporate espionage D. benchmarking E. gradual diffusion

D. benchmarking' Benchmarking is the process of comparing the organization's practices and technologies with those of other companies. While competitors understandably are reluctant to share their secrets, information trading for benchmarking is not uncommon and can prove highly valuable.

Scenario C. Presto Inc. is currently in need of a new technology to improve efficiency. The question is whether it should acquire the technology from an outside source or develop it itself. The CEO of Presto Inc. is focused on comparing the company's current technology with that of other organizations. However, the company's CIO is concentrating more on what can be done in the future as well as on the new technologies being developed. 105. The CEO of Presto Inc. is focused on comparing the company's current technology with that of other organizations. This is known as: A. scanning. B. a situational analysis. C. licensing. D. benchmarking. E. technology trading.

D. benchmarking. Benchmarking is the process of comparing an organization's practices and technologies with those of other companies. The CEO focuses on benchmarking.

In a _____ organization, important decisions usually are made at the top. A. flat B. wide C. narrow D. centralized E. decentralized

D. centralized The delegation of responsibility and authority decentralizes decision making. In a centralized organization, important decisions usually are made at the top.

Scenario B. At a management retreat, Maria and her colleagues are reminiscing about how much they enjoyed college life. Everyone remembers their favorite management topics. Maria is all surprised to realize that each of them has a favorite leadership perspective. However, no one can remember the name of the theory they liked most! 1. Tammy knows that her favorite leadership perspective is the one that assumed that leaders are born, not made. (This is because Tammy Jean does, in fact, believe she is a "born leader.") 2. Li, on the other hand, has found that her most effective style of leadership is to capitalize on the fact that she arouses a sense of excitement in her employees, who genuinely like and admire her and want to follow her lead. 3. William argues that his favorite theory recognized that the best answer concerning which style of leadership to use is "It depends!" He maintains that the theory he liked the most argued for "looking before you lead." 4. Matt argues that the company will be most effective when the leader makes decisions on his or her own and then announces those decisions to the group Li's leadership style can be referred to as the _____ approach. A. trait B. behavioral C. situational D. charismatic E. transactional

D. charismatic A charismatic leader is a person who is dominant, self-confident, convinced of the moral righteousness of his or her beliefs, and able to arouse a sense of excitement and adventure in followers.

63. In a business unit setup, kaizen refers to ____. A. zero defects B. total quality management C. value chain D. continuous improvement E. rightsizing

D. continuous improvement A company attains and retains competitive advantage by continuing to improve. This concept called kaizen, or continuous improvement, is an integral part of Japanese operations strategy.

FoodieZ, a fast food manufacturer, changed the packaging of its sandwiches to minimize waste. Additionally, it uses recycled paper to bag its products. FoodieZ states that these actions make the earth a "better place to eat." In this scenario, FoodieZ is participating in _____. A. deregulation B. corporate entrepreneurship C. maximizing customer actualization D. corporate social responsibility E. corporate wealth enhancement

D. corporate social responsibility Corporate social responsibility is the obligation toward society assumed by business. It consists broadly of policies and practices that reflect business responsibility for some of the wider societal good.

Early adopters of new technologies tend to be: A. isolated and highly conservative in their views. B. extremely suspicious of innovation and change. C. less educated and unable to cope with uncertainty and abstraction. D. critical to the success of a new technology. E. the most adventurous and willing to take risks.

D. critical to the success of a new technology. Early adopters are critical to the success of a new technology because they include well-respected opinion leaders. Early adopters often are the people or organizations to which others look for leadership, ideas, and up-to-date technological information.

Programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a varied workforce is known as: A. ethnicity training. B. team training. C. group training. D. diversity training. E. orientation training.

D. diversity training. Diversity training refers to programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a diversified workforce.

Ranier Outdoor Clothing managers engage in an annual organizational assessment, trying to predict industry changes as well as possible opportunities and threats. They look at issues such as who their competitors are, current entry barriers, and what substitutes exist for their products. This assessment is called _____. A. scenario development B. forecasting C. benchmarking D. environmental scanning E. strategic maneuvering

D. environmental scanning Environmental scanning means both searching out information that is unavailable to most people and sorting through that information to interpret what is important and what is not. Managers ask questions such as these: "Who are our current competitors?" "Are there few or many entry barriers to our industry?" and "What substitutes exist for our product or service?"

A managerial principle stating that control is enhanced by concentrating on the significant deviations from the expected result or standard is referred to as the principle of ____. A. control B. concentration C. progression D. exception E. standardization

D. exception The principle of exception states that control is enhanced by concentrating on the exceptions to, or significant deviations from, the expected result or standard.

Parent company nationals who are sent to work at a foreign subsidiary are known as ____. A. third-country nationals B. host-country nationals C. immigrants D. expatriates E. inpatriates

D. expatriates When establishing operations overseas, headquarters executives have a choice among sending expatriates (individuals from the parent country), using host-country nationals (natives of the host country), and deploying third-country nationals (natives of a country other than the home country or the host country).

Of the three broad levels of the organizational pyramid, the top managerial level excludes the: A. presidents. B. CEO. C. vice presidents. D. first-line managers. E. strategic managers.

D. first-line managers. The three broad levels of the organizational pyramid are commonly called the hierarchy. The CEO occupies the top position and is the senior member of top management. The top managerial level also includes presidents and vice presidents. They are the strategic managers in charge of the entire organization.

The operational level of the organization includes: A. the CEO, president, and vice presidents. B. the plant and departmental managers. C. strategic managers and tactical managers. D. frontline managers, supervisors, and employees. E. stockholders and the board of directors.

D. frontline managers, supervisors, and employees. The lowest level is made up of lower management and workers. It includes office managers, sales managers, supervisors, and other frontline managers, as well as the employees who report directly to them. This level is also called the operational level of the organization.

In a _____ organization, jobs are specialized and grouped such as marketing, finance, operations, accounting, and human resources. A. product B. geographical C. conglomerate D. functional E. customer

D. functional In a functional organization, jobs (and departments) are specialized and grouped according to business functions and the skills they require: production, marketing, human resources, research and development, finance, accounting, and so forth.

According to path-goal theory, achievement-oriented leadership is descriptive of leader behaviors that are ____. A. concerned with task performance B. concerned with group maintenance C. concerned with participatory decision making D. geared toward motivating people E. geared toward commanding respect .

D. geared toward motivating people In path-goal theory, the leadership behaviors include achievement-oriented leadership, which are behaviors geared toward motivating people, such as setting challenging goals and rewarding good performance

The programming stage of human resources management involves: A. monitoring turnover and absenteeism. B. estimating labor supply. C. evaluating human resources activities. D. implementing the company's plans. E. discovering new HR trends.

D. implementing the company's plans. In the second stage of the HR planning process, the organization conducts programming of specific human resources activities, such as recruitment, training, and layoffs. In this stage, the company's plans are implemented.

According to McClelland's research, the need for achievement is: A. a desire to be liked by others. B. a desire to influence others. C. often perceived negatively. D. important to most American managers. E. a desire to control others.

D. important to most American managers. The need for achievement is characterized by a strong orientation toward accomplishment and an obsession with success and goal attainment. Most managers and entrepreneurs in the United States have high levels of this need and like to see it in their employees.

Even after MP3 players became an accepted technology, some people still resisted using them because they were comfortable with their old ways of listening to music. The reason for this type of resistance to change is most likely to be ____. A. surprise B. peer pressure C. differing assessments D. inertia E. timing

D. inertia Inertia refers to the fact that people don't want to disturb the status quo. The old ways of doing things are comfortable and easy, so people don't want to try something new.

External audits are generally used for: A. assessing what the company has done for itself. B. evaluating production efficiency. C. evaluating sales effectiveness. D. investigating possible targets for mergers or acquisitions. E. assessing what the company has done for its customers.

D. investigating possible targets for mergers or acquisitions. A company can conduct external audits of competitors or other companies for its own strategic decision-making purposes. This type of analysis can be used to investigate other organizations for possible merger or acquisition.

When an organization attempts to force the change and fails to address concerns or fails to provide necessary resources, knowledge, or leadership to help the change succeed, employees tend to resist the change due to ____. A. inertia B. timing C. misunderstanding D. management tactics E. surprise

D. management tactics Change-specific reasons for resistance include management tactics. Management may attempt to force the change and may fail to address concerns in order to develop employee commitment. Or it may fail to provide the necessary resources, knowledge, or leadership to help the change succeed.

Strategic goals evolve from an organization's: A. core capabilities. B. suppliers and customers. C. tactical plans. D. mission and vision. E. stakeholders.

D. mission and vision. Strategic goals evolve from the mission and vision of an organization. The chief executive officer of an organization, with the input and approval of the board of directors, establishes the mission, vision, and major strategic goals.

To behave ethically, an individual will require: A. social capital. B. competitive intelligence. C. creative thinking. D. moral character. E. technical skills.

D. moral character. Behaving ethically requires not just moral awareness and moral judgment but also moral character, including the courage to take actions consistent with one's ethical decisions.

An analysis identifying the jobs, people, and departments for which training is necessary is a(n): A. development exercise. B. performance appraisal. C. situational analysis. D. needs assessment. E. environmental scanning.

D. needs assessment. With a needs assessment, managers conduct an analysis to identify the jobs, people, and departments for which training is necessary. Based on needs assessment, training objectives and content can be established

The similarity between benchmarking and scanning is that both focus on: A. what is being done currently. B. what can be done and is being developed. C. key technologies. D. pacing technologies. E. obtaining competitor's secrets.

D. pacing technologies. Benchmarking examines key and perhaps some pacing technologies, while scanning seeks out pacing and emerging technologies—those just being introduced and still in development.

Timez Inc., a company that prepares individual tax returns, has finally agreed to utilize the IRS system that enables the returns to be transmitted electronically rather than through mail. Almost every other firm in the United States is utilizing the system because it has been proven reliable. The company has accepted the new technology only after a number of threats of account withdrawal from key customers. In this case, Timez should be classified as: A. an innovator. B. an early adopter. C. part of the early majority. D. part of the late majority. E. part of the early minority.

D. part of the late majority. Members of the late majority group are more skeptical of technological change and approach innovation with great caution, often adopting only out of economic necessity or increasing social pressure. Timez Inc. can be categorized as a part of this group as it accepted the new technology only under pressure.

Compared to other types of appraisals, _____ appraisals tend to be more objective and can focus on production data such as sales volume or profits. A. comparative B. behavioral C. trait D. results E. industry

D. results Results appraisals tend to be more objective and can focus on production data such as sales volume (for a salesperson), units produced (for a line worker), or profits (for a manager). One approach to results appraisals, called management by objectives (MBO), involves a subordinate and a supervisor agreeing in advance on specific performance goals (objectives).

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

D. skilled management. A SWOT analysis is a comparison of a company's strengths, weaknesses, opportunities, and threats that helps executives formulate strategy. Strengths and weaknesses refer to internal resources. Skilled management is an example of a strength to a company.

The level of planning that involves the least amount of details is: A. operational planning. B. contingency planning. C. tactical planning. D. strategic planning. E. visionary planning.

D. strategic planning. Goals and plans become more specific and involve shorter periods of time as they move from the strategic level to the tactical level and then to the operational level. The level of planning that involves the least amount of details is strategic planning.

Organizations must acquire a variety of resources in order to produce a product or service of value. These resources may include materials, equipment, financing, or even employees. The sources that provide these various resources are referred to as _____. A. warehouse clubs B. regulators C. retailers D. suppliers E. prospectors

D. suppliers Organizations must acquire resources (inputs) from their environment and convert them into products or services (outputs) to sell. Suppliers provide resources needed for production in the form of people (trade schools and universities), raw materials (producers, wholesalers, and distributors), information (researchers and consulting firms), and financial capital (banks).

Sustainability is defined as: A. the fast and timely execution, response, and delivery of results. B. the speed and dependability with which an organization delivers what customers want. C. the introduction of new goods and services into the market. D. the effort to minimize the use of resources, especially those that are polluting and non-renewable. E. the minimization of costs to achieve profits and be able to offer prices that are attractive to consumers.

D. the effort to minimize the use of resources, especially those that are polluting and non-renewable. Sustainability is the effort to minimize the use of resources, especially those that are polluting and nonrenewable. Done properly, sustainability allows people to live and work in ways that can be maintained over the long term without depleting the environmental, social, and economic resources.

The process for ethical decision making begins with: A. defining the complete moral problem. B. developing an ethical framework and determining the economic outcomes. C. considering the legal requirements and evaluating the legal duties. E. proposing a convincing moral solution.

D. understanding all moral standards and recognizing all moral impacts. Resolving ethical problems should begin with understanding the various moral standards (universalism, relativism, etc.) and recognizing the impacts of the alternatives. The final stage should ideally be proposing a convincing moral solution.

Discounting the future refers to: A. valuing long-term benefits and costs more heavily than short-term benefits and costs. B. overestimating the long-term effects of the decision. C. underestimating the short-term effects of the decision. D. valuing short-term benefits and costs more heavily than longer-term benefits and costs. E. making quick decisions with whatever information is at hand.

D. valuing short-term benefits and costs more heavily than longer-term benefits and costs. Often decision makers discount the future. That is, in their evaluation of alternatives, they weigh short-term costs and benefits more heavily than longer-term costs and benefits.

Which of the following is an example of two-way communication? A. A television show B. A telephone ringing C. A political speech D. A newspaper article E. An argument

E. An argument When receivers respond to senders, two-way communication has occurred. An argument is the only example here in which information flows in two directions.

Which of the following will help a manager create a work group that has high-performance norms and is cohesive? A. Recruiting members with varied attitudes, values, and backgrounds B. Presenting challenges from only within the team C. Trying to keep the team as large as possible D. Maintaining low entrance and socialization standards E. Being a participative leader

E. Being a participative leader Maintaining high entrance and socialization standards, presenting a challenge from outside the group, keeping the team small, tying rewards to team performance, being a participative leader, and publicizing a team's successes are all ways to create high-performing and cohesive work groups.

Which of the following statements is true of collaboration? A. Collaboration occurs only within the boundaries of an organization. B. A sole focus on unit performance spurs collaboration. C. It is unrealistic to think that a company can collaborate with its customers. D. Companies should capitalize on ideas generated within the organization alone. E. Collaboration is an important process of knowledge management.

E. Collaboration is an important process of knowledge management. One of the most important processes of knowledge management is to ensure that people in different parts of the organization collaborate effectively with one another. This requires productive communications among different departments, divisions, or other subunits of the organization.

Which of the following involves weighting short-term costs and benefits more heavily than longer-term costs and benefits? A. Framing effects B. Cognitive conflict C. Illusion of control D. Social realities E. Discounting the future .

E. Discounting the future Often decision makers discount the future. That is, in their evaluation of alternatives, they weigh short-term costs and benefits more heavily than longer-term costs and benefits

Which of the following levels of corporate social responsibility of business includes meeting societal expectations that are not written as law? A. Economic B. Legal C. Social D. Philanthropic E. Ethical

E. Ethical Social responsibilities of a company can be categorized into economic, legal, ethical, and philanthropic responsibilities. Ethical responsibilities include meeting other societal expectations, not written as law.

Which type of power is dominant when a leader is respected for his knowledge? A. Legitimate power B. Reward power C. Coercive power D. Referent power E. Expert power

E. Expert power A leader who has expert power has certain expertise or knowledge; people comply because they believe in, can learn from, or can otherwise gain from that expertise.

Which of the following should be done for constructing an effective ethics code? A. Keep it complex, formal, and rigid so that employees realize how serious it is. B. Make it as catchy and clever as possible. C. Involve only the legal department and top executives in writing the statement. D. Let the employees construct the ethics code according to their ideologies. E. Focus on real-life situations that employees can relate to.

E. Focus on real-life situations that employees can relate to. To make an ethics code effective, do the following: involve those who have to live with the code in writing it; focus on real-life situations that employees can relate to; keep it short, simple, and easy to understand and remember; write about values and shared beliefs that people can really believe in; and set the tone at the top, having executives talk about and live up to the statement.

Which of the following is a challenge faced by organizations when managing a diverse workforce? A. Lack of perspective on a differentiated market B. Inability to attract and retain motivated employees C. Inability to leverage creativity and innovation D. Decreasing organizational flexibility E. Lack of cohesiveness

E. Lack of cohesiveness To become effective managers of the diverse organization, we first have to identify and overcome a number of challenges. These include unexamined assumptions, lower cohesiveness, communication problems, mistrust and tension, and stereotyping.

_____ are the traditional source of appraisal information because they are often in the best position to observe an employee's performance. A. Peers B. Subordinates C. Internal and external customers D. Team members E. Managers and supervisors

E. Managers and supervisors Managers and supervisors are the traditional source of appraisal information because they are often in the best position to observe an employee's performance. However, companies are also turning to peers and team members to provide input to the performance appraisal.

Which of the following characteristics increases the likelihood of an entrepreneur's success? A. Unwillingness to sacrifice B. Intolerance of ambiguity C. Avoiding risky situations D. Avoiding uncertainty E. Opportunity obsession

E. Opportunity obsession Successful entrepreneurs have the following characteristics: commitment and determination; leadership; opportunity obsession; tolerance of risk, ambiguity, and uncertainty; creativity, self-reliance, ability to adapt; and motivation to excel.

_____ technologies have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage. A. Base B. Emerging C. Key D. Strategic E. Pacing

E. Pacing Pacing technologies have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage. Managers will want to focus on developing or investing in pacing technologies because of the competitive advantages they can provide.

Which of the following has both, administrative functions to provide information for salary and promotional decisions and developmental functions to provide insight for training or other improvement decisions? A. Benchmarking B. Bootlegging C. Recruitment D. Needs assessment E. Performance appraisal

E. Performance appraisal Performance appraisal has two basic purposes: administrative, as it provides managers with the information managers need to make salary, promotion, and dismissal decisions, and developmental, as the information gathered can be used to identify and plan the additional training, experience, or other improvement that employees require.

_____ change refers to a change effort that is initiated before a performance gap has occurred. A. Intrinsic B. Reactive C. Retroactive D. Extrinsic E. Proactive

E. Proactive Proactive change means anticipating and preparing for an uncertain future. It implies being a leader and creating the future you want. It is a change effort that is initiated before a performance gap has occurred.

Which of the following is most likely to be the last step in an ideal ethical decision-making process? A. Defining the complete moral problem B. Developing an ethical framework C. Determining the legal requirements D. Understanding all moral standards E. Proposing a moral solution

E. Proposing a moral solution Resolving ethical problems should begin with understanding the various moral standards (universalism, relativism, etc.) and recognizing the impacts of the alternatives. The final stage should ideally be proposing a convincing moral solution.

According to organizational behavior modification, which of the following is a key consequence of behavior? A. Arbitration B. Empowerment C. Centralization D. Vigilance E. Punishment

E. Punishment The four key consequences of behavior that either encourage or discourage people's behavior are positive reinforcement, negative reinforcement, punishment, and extinction.

_____ refers to management of the network of facilities and people that obtain materials from the outside, transform them into products, and distribute the products to customers. A. Inventory management B. Strategic maneuvering C. Human resource management D. Customer service E. Supply chain management

E. Supply chain management Supply chain management refers to managing the entire network of facilities and people that obtain raw materials from outside the organization, transform them into products, and distribute them to customers. In recent years, supply chain management has become an increasingly important contributor to a company's competitiveness and profitability.

Which of the following is a disadvantage of franchising? A. There is a large amount of risk for the franchisor. B. The franchisor has to put in a large amount of capital. C. The cost of development is high. D. There is a high amount of political risk. E. There are chances to lose quality control.

E. There are chances to lose quality control. The most significant disadvantage of franchising concerns quality control. To make matters worse, the geographic distance between the franchisor and its overseas franchisees makes poor quality difficult to detect.

44. Which of the following best describes contingency plans? A. They are the long-term direction and strategic intent of a company. B. They are a set of procedures for translating broad strategic goals and plans into specific goals and plans. C. They are a set of procedures that identify specific processes required at lower levels of an organization. D. They are an organization's basic scope and purpose of operations. E. They are a set of actions to be taken when events in the external environment require a sudden change.

E. They are a set of actions to be taken when events in the external environment require a sudden change. Some plans, called contingency plans, might be referred to as "what if" plans. They include sets of actions to be taken when a company's initial plans have not worked well or if events in the external environment require a sudden change.

Managers who optimize their decisions will attempt to: A. choose the first, minimally acceptable alternative. B. fix on the decision that is fastest to make. C. zero in on the least expensive option available in the market. D. decide on whatever produces the least challenge or conflict. E. achieve the best possible balance among several goals.

E. achieve the best possible balance among several goals. Optimizing means that a manager achieves the best possible balance among several goals. An optimizing strategy is the one that achieves the best balance among multiple goals.

Referent power is described as the power that exists through having ____. A. control over punishments B. control over rewards C. the authority to tell others what to do D. expertise E. appealing personal characteristics

E. appealing personal characteristics A leader with referent power has personal characteristics that appeal to others; people comply because of admiration, personal liking, a desire for approval, or a desire to be like the leader.

Having the strength and persistence to act in accordance with one's ethics despite the challenges is referred to as moral _____. A. awareness B. judgment C. certainty D. action E. character

E. character Making ethical decisions takes moral awareness (realizing the issue has ethical implications), moral judgment (knowing what actions are morally defensible), and moral character (the strength and persistence to act in accordance with your ethics despite the challenges).

Environmental _____ refers to the degree of discontinuous change that occurs within the industry. A. complexity B. dysfunction C. contracting D. cooptation E. dynamism

E. dynamism Environmental dynamism refers to the degree of discontinuous change that occurs within the industry. High-growth industries with products and technologies that change rapidly tend to be more uncertain than stable industries where change is less dramatic and more predictable.

The final phase in the decision-making process is _____. A. anticipating the results B. implementing the solution C. diagnosing remaining issues D. criteria analysis E. evaluating the decision

E. evaluating the decision The final stage in the decision-making process is evaluating the decision. It involves collecting information on how well the decision is working.

Once a problem is identified and properly diagnosed, the next phase in the decision-making process involves _____. A. evaluating alternatives B. evaluating consequences C. generating information D. implementing the decision E. generating alternative solutions

E. generating alternative solutions The second phase of decision making links problem diagnosis to the development of alternative courses of action aimed at solving the problem. Managers generate at least some alternative solutions based on past experiences.

50. In an ideal decision-making process, the initial step is to: A. select an alternative. B. evaluate the decision. C. challenge the status quo. D. generate alternatives. E. identify the problem.

E. identify the problem The ideal decision-making process includes six phases. The decision makers should (1) identify and diagnose the problem, (2) generate alternative solutions, (3) evaluate alternatives, (4) make the choice, (5) implement the decision, and (6) evaluate the decision.

The correspondence between actions and words that includes characteristics such as honesty and credibility is a leadership trait known as ____. A. drive B. leadership motivation C. self-confidence D. knowledge of the business E. integrity

E. integrity One of the leadership traits is integrity. Integrity is the correspondence between actions and words. Honesty and credibility, in addition to being desirable characteristics in their own right, are especially important for leaders because these traits inspire trust in others.

Periodically assessing a company's own planning, organizing, leading, and controlling efforts is the essential function of ____. A. strategic audits B. feedforward control C. feedback control D. competitive audits E. internal audits

E. internal audits Management audits may be external or internal. An internal audit is a periodic assessment of a company's own planning, organizing, leading, and controlling processes.

Parading refers to a team's strategy that: A. entails making decisions with the team and then telling outsiders of the team's intentions. B. requires team members to experiment with solutions before taking action. C. involves a focus on external relations. D. requires team members to interact regularly with outsiders. E. is likely to be effective for teams that are less dependent on outside groups.

E. is likely to be effective for teams that are less dependent on outside groups. Parading means the team's strategy is to simultaneously emphasize internal team building and achieve external visibility. Informing or parading strategies may be more effective for teams that are less dependent on outside groups.

Diversity tends to create: A. organizational rigidity. B. homogeneous groups. C. improved communication. D. high cohesiveness. E. mistrust and tension.

E. mistrust and tension. To become effective managers of the diverse organization, we first have to identify and overcome a number of challenges. These include unexamined assumptions, lower cohesiveness, communication problems, mistrust and tension, and stereotyping

Advocates of corporate social responsibility argue that: A. organizations ought to be profit-seeking and that when they concentrate on this motive, they will benefit society. B. organizations' only responsibilities are clearly defined by the laws and regulations imposed upon them. C. organizations' responsibilities are to attempt to satisfy all relevant stakeholders' interests. D. it is unethical for unelected business leaders to spend shareholders' money on projects unconnected to key business interests. E. organizations have a wider range of responsibilities that extend beyond the production of goods and services at a profit.

E. organizations have a wider range of responsibilities that extend beyond the production of goods and services at a profit. Advocates of corporate social responsibility argue that organizations have a wider range of responsibilities that extend beyond the production of goods and services at a profit. As members of society, organizations should actively and responsibly participate in the community and in the larger environment.

Crystal Corp. has introduced a voice recognition machine system that enables machines to recognize the workers' voice and respond to commands. The company is yet to prove the full value of this product. However, organizations that have used the product appropriately have found that it efficiently speeds up various processes. Crystal Corp.'s voice recognition machine system is an example of a(n) _____ technology. A. base B. emerging C. elevated D. strategic E. pacing

E. pacing' Pacing technologies have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage. For example, when first installed, computer-aided manufacturing was a pacing technology. Its full potential was not yet widely realized, but companies that used it effectively developed significant speed and cost advantages.

The final step in managing resistance involves strengthening new behaviors that support a change and is referred to as ____. A. solidifying B. moving C. stabilizing D. enforcing E. refreezing

E. refreezing Refreezing means strengthening the new behaviors that support the change. Refreezing involves implementing control systems that support the change, applying corrective action when necessary, and reinforcing behaviors and performance that support the agenda.

In terms of good management, efficiency differs from effectiveness primarily in the former's focus on: A. customer satisfaction. B. shareholder profits. C. customer retention. D. employee turnover. E. resource utilization.

E. resource utilization. Good managers accomplish organizational goals by working both effectively and efficiently. To be effective is to achieve organizational goals. To be efficient is to achieve goals with minimal waste of resources—that is, to make the best possible use of money, time, materials, and people.

According to Maslow, _____ needs describe the need for friendship, affection, belonging, and love. A. self-actualization B. ego C. safety or security D. physiological E. social

E. social In Maslow's need hierarchy, social needs include the need for friendship, affection, belonging, and love. According to Maslow, people are motivated to satisfy the lower needs before they try to satisfy the higher needs.

Establishing common routines and operating procedures that apply uniformly to everyone is called ____. A. formalization B. accountability C. concentration D. delegation E. standardization

E. standardization Standardization is establishing common routines and procedures that apply uniformly to everyone. It constrains actions and integrates various units by regulating what people do.

The three levels of planning are: A. specific, business, and detailed. B. visionary, functional, and detailed. C. visionary, business, and detailed. D. managerial, synergistic, and operational. E. strategic, tactical, and operational.

E. strategic, tactical, and operational. Because planning is an important management function, managers at all three levels—top-level (strategic) managers, middle-level (tactical) managers, and frontline (operational) managers—use it. However, the scope and activities of the planning process at each level of the organization often differ.

Targets that are particularly demanding and can generate a major shift away from mediocrity and toward tremendous achievement are known as: A. challenge goals. B. mountaintop goals. C. reach goals. D. summit goals. E. stretch goals.

E. stretch goals. Some firms today set stretch goals, which are targets that are exceptionally demanding and that some people would never even think of. Stretch goals can generate a major shift away from mediocrity and toward tremendous achievement.

The underlying goal of managing diversity is to: A. treat all people the same. B. increase the numbers of minorities in business. C. realize improved immigration figures. D. enhance organizational cohesiveness. E. understand and value employee differences.

E. understand and value employee differences. Managing diversity means more than just hiring women and minorities and making sure they are treated equally and encouraged to succeed. It also means understanding and deeply valuing employee differences to build a more effective and profitable organization.

Realizing that current practices are inappropriate and that new behavior must be enacted is a required stage for managing resistance called ____. A. stabilizing B. moving C. storming D. norming E. unfreezing

E. unfreezing In the unfreezing stage, management realizes that its current practices are no longer appropriate and the company must break out of (unfreeze) its present mold by doing things differently. People must come to recognize that some of the past ways of thinking, feeling, and doing things are obsolete.

As an identified leadership trait, leadership motivation suggests that great leaders: A. have drive. B. are all introverts. C. encourage others to lead. D. hold conventional beliefs. E. want to lead.

E. want to lead. One of the leadership traits is leadership motivation, which means that great leaders want to lead. So it helps to be extraverted and have a high need for power.

A tool for determining what is done on a given job and what should be done on that job is known as job: A. screening B. analysis. C. orientation. D. profile. E. design.

Job analysis is a tool for determining what is done on a given job and what should be done on that job. It involves job description and job specification.

56. _____ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best. A. Benchmarking B. Maximizing C. Framing D. Satisficing E. Optimizing

The maximizing decision realizes the greatest positive consequences and the fewest negative consequences. Maximizing requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best.