Midterm

A policy includes more specifics that does a rule

FALSE

A recent study says that the world's information is doubling every seven years

FALSE

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

FALSE

A ritual is a narrative based on true events, which is repeated and sometimes embellished upon to emphasize a particular value of an organization

FALSE

Douglas McGregor was one of the pioneers of early behaviorism.

FALSE

The "social glue" that binds customers to a particular firm is called organizational culture

FALSE

A single-product strategy can be described as focused but vulnerable

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

In time-critical situations, satisficing may be a good approach to decision making

TRUE

Insisting on realism is among the leader behaviors that help a manager successfully execute a strategy

TRUE

Integration is the tendency of the parts of an organization to draw together to achieve a common purpose

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

The strategic-management process has five steps and a feedback loop

TRUE

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

TRUE

The type of training provided to new hires and the frequency of performance evaluations contribute to their understanding of the organization's culture

TRUE

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

TRUE

Time and task management are major challenges for every manager.

TRUE

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

TRUE

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

TRUE

Understanding how to use failure is an important implementation principle for evidence-based management

TRUE

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

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

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

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

Which of the following cultural perspectives leads to the highest long-term financial performance? A. Adaptive perspective B. Fit perspective C. Market perspective D. Conditional perspective E. Strength perspective

A. Adaptive perspective

Which of the following is a stage in the life of an organization? A. Birth B. Decline C. Elderly D. Introduction E. Growth

A. Birth

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

A. Most favored nation

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

A. NAFTA.

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

A. Operations management

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

A. The opening of Asian markets to foreign investors.

Which of the following can be classified as a mutual-benefit organization? A. Trade association B. Hospital C. Financial company D. Retail company E. College

A. Trade association

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

A. Uncertainty avoidance

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

A. clan

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

A. clawback

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

A. efficient

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

A. entrepreneur

When analyzing the "O" in SWOT analysis, a manager might take note of A. favorable government regulations. B. absenteeism among employees. C. good morale among workers. D. high service levels. E. good financial position.

A. favorable government regulations.

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

A. first-line managers.

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

A. functional

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

A. internal locus of control.

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

A. knowledge worker.

If you do not have all of the information for a complete plan, you should A. make decisions based on what you have, since perfect information is rare. B. wait until you can get that information to take action you know will be appropriate. C. implement two or more courses of action simultaneously. D. shrink the plan to limit its scope to only areas where you have good information. E. disregard the plan and go with your intuition.

A. make decisions based on what you have, since perfect information is rare.

A single-use plan encompassing a range of projects or activities is a(n) A. program. B. strategy. C. series. D. agenda. E. mission.

A. program.

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

A. quality control

An analytical decision-making style reflects a person who is ______ in his value orientation and ______ in his tolerance for ambiguity. A. task/technical; high B. task/technical; low C. people/social; high D. people/social; low E. managerial; low

A. task/technical; high

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

A. the World Bank.

Productivity gains from MBO are higher when an organization has A. top-management commitment. B. few budget problems. C. team rather than individual performance reviews. D. union support. E. nonmanagerial employee support.

A. top-management commitment.

What are the advantages to your career of working overseas?

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

Describe the typical organization chart. What is a horizontal relationship compared to a vertical one? A solid line versus a dotted one?

An organization chart is a box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations (see Figure 8.4). Two kinds of information that organization charts reveal about organizational structure are (1) the vertical hierarchy of authority—who reports to whom, and (2) the horizontal specialization—who specializes in what work. Line positions (authority to make decisions) are indicated on the organization chart by a solid line (usually a vertical line). Staff positions (authority functions that provide advice, recommendations, and research) are indicated on the organization chart by a dotted line (usually a horizontal line).

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

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

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

B. APEC

Which of the following is NOT a recommended option when you discover that an action is not working after a decision? A. Give the chosen solution more time. B. Abandon the solution in favor of the status quo. C. Try another alternative. D. Go back to the beginning of the decision-making process. E. Change the chosen solution slightly.

B. Abandon the solution in favor of the status quo.

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

B. Coordinating

Which of the following is an advantage of group decision making? A. Groupthink B. Deeper commitment to the decision C. Less thought required D. A quicker decision E. More flexibility in the final decision

B. Deeper commitment to the decision

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

B. Dumping

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

B. Mary Parker Follet.

Xerox Corporation is currently in what stage of its organizational life cycle? A. Decline stage B. Maturity stage C. Adolescent stage D. Youth stage E. Adult stage

B. Maturity stage

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

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

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

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

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

B. Nonprofit

Research on the effects of participative management (PM) on employees' performance and satisfaction indicates that A. PM has no effect on either. B. PM has a small positive effect on both. C. PM has a large effect on satisfaction, but a small effect on performance. D. PM has a large positive effect on both. E. PM has a large effect on performance, but no significant effect on satisfaction.

B. PM has a small positive effect on both.

__________ refers to the idea that the economic value of separate, related businesses under one ownership and management is greater together than the businesses are worth separately. A. Structural benefit B. Synergy C. Selective function D. Alignment E. Consolidation

B. Synergy

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

B. Systems

According to productivity expert Odette Pollar, which of the following should a manager delegate? A. Emergencies. B. Tasks that challenge subordinates. C. Special tasks your boss has asked you to do. D. Personnel matters. E. Confidential matters.

B. Tasks that challenge subordinates.

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

B. Theory X

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

B. an ethical dilemma.

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

B. an internal stakeholder

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

B. closed

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

B. competition

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

B. complexity theory.

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

B. culture

Technical specialization and division of labor in an organization lead to ________ in an organization. A. bureaucracy B. differentiation C. integration D. conglomeration E. decentralization

B. differentiation

An organization that is offering unique, superior products or services to a wide market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. diversification. E. focused differentiation.

B. differentiation.

The arrangement of having discrete parts of a task done by different people is called an organization's A. coordinated effort. B. division of labor. C. span of control. D. chain of command. E. matrix structure.

B. division of labor.

Computer technology corporation Dell recently acquired Quest software, an IT management software provider, in order to expand upon its software expertise and offerings. Dell is pursuing a(n) ______ strategy. A. escalation B. growth C. stability D. merger E. defensive

B. growth

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

B. organizing.

The constant feedback loop of the ______ is designed to ensure plans stay headed in the right direction. A. means-end chain B. planning/control cycle C. control system D. project management method E. project planning sequence

B. planning/control cycle

In the current broadband environment, consumers are able to download products like music, movies, and books. Netflix was aggressive in taking advantage of this fact, offering web streaming and game console access to its customers before competitors. According to Miles and Snow, Netflix would be a(n) A. reactor. B. prospector. C. analyzer. D. defender. E. executor.

B. prospector.

When a manager decides to take no action in the belief that there will be no great negative consequences, she is engaged in A. limited reaction. B. relaxed avoidance. C. relaxed change. D. decreased involvement. E. defensive avoidance.

B. relaxed avoidance.

Management instituted a new ______ in Yichao's workplace that "employees who are more than 15 minutes late to work without calling a supervisor will be given a written warning." A. policy B. rule C. procedure D. project E. program

B. rule

The tendency of a group to settle on a decision that is "good enough" is called A. goal displacement. B. satisficing. C. groupthink. D. heuristics. E. pseudo-optimization.

B. satisficing.

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

B. scientific research

Because of the frequency with which world competition and information technology alter marketplace conditions, a company's ________ may have to be done closer to every 1 or 2 years than every 5. A. management planning B. strategic planning C. tactical planning D. operational planning E. implementation planning

B. strategic planning

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

B. strategic planning.

One of the typical devices for transmitting culture, a(n) ______ is an object, act, quality, or event that conveys meaning to others. A. icon B. symbol C. sign D. representation E. ritual

B. symbol

Which of the following is not a description of organizational culture? A. A system of shared beliefs and values. B. "Social glue" binding members together. C. A system of reporting relationships. D. An organization's personality. E. A system that guides the behavior of organizational members.

C. A system of reporting relationships.

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

C. ASEAN.

An example of a firm that pursues a differentiation strategy is A. Cartier. B. Lexus. C. Bic. D. A regional discount gas station chain. E. Home Depot.

C. Bic.

Which of the following statements about strategic planning and strategic management is true? A. Strategic planning is rarely used in the current environment of fast change because it does not allow for flexibility. B. Strategic management is a process completed by top managers. C. Both should be implemented because they can provide direction and momentum. D. Middle managers need not understand strategies; they simply follow them. E. Strategic planning is used to accomplish tactical goals.

C. Both should be implemented because they can provide direction and momentum.

Consumers can use a national company called Service Magic to receive bids from quality providers of a variety of services, including home remodel, landscaping, plumbing, and housecleaning. Service Magic charges service providers for the leads it provides to them monthly. Which of the following is the source of Service Magic's strategic position? A. Low-profit margin and many customers. B. Broad needs and few customers. C. Broad needs and many customers. D. High-profit margin and many customers. E. High-profit margin and few customers.

C. Broad needs and many customers.

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

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

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

C. Insider trading

Which level of management is most often engaged in tactical planning? A. Working-level employees B. First-line managers C. Middle managers D. Top managers E. Consultants

C. Middle managers

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

C. Resource allocator

The concept of "bounded rationality" is most closely related to the _________ model of decision making. A. classical B. rational C. Satisficing D. Incremental E. intuition

C. Satisficing

Which of the following is not a device through which culture is typically transmitted to employees? A. Symbols B. Stories C. Strategic plan D. Heroes E. Rites and rituals

C. Strategic plan

In what stage of the organizational life cycle does a firm increase its hiring, create some division of labor, and begin setting rules? A. Midlife B. Maturity C. Youth D. Growth E. Birth

C. Youth

At Caldwell Organic Grocers, all purchasing, hiring, and production decisions are made by top management. Caldwell has ______ authority. A. classical B. wide C. centralized D. for-profit E. matrix

C. centralized

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

C. cheating

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

C. differential rate system.

At Harvestar Farm Equipment, specialists from marketing, manufacturing, and engineering departments work closely together in cross-functional teams on new professional planting and harvesting equipment designs. Harvestar is an example of a ______ organization. A. highly differentiated B. centralized C. highly integrated D. mechanistic E. bureaucratic

C. highly integrated

Galen is temporarily working with a group with membership from different departments in his company on a special project, yet he still has all of responsibilities of his regular job and still reports to the same manager. This is an example of A. matrix structure. B. work dispersion. C. horizontal design. D. hybrid workgroups. E. network clustering.

C. horizontal design.

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

C. leading.

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

C. licensing.

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

C. management

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

C. management science

A person with a conceptual decision-making style is __________ in her value orientation and __________ in her tolerance for ambiguity. A. managerial; high B. task/technical; low C. people/social; high D. people/social; low E. managerial; low

C. people/social; high

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

C. planning.

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

C. preconventional

Director of accounting is an example of a staff position

FALSE

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

C. supplier.

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

C. system.

Managers at Cimarron Saddlery expect to meet profitability goals for the company by cutting costs through a 70% increase in global sourcing of leather and other materials over the next two years. This is an example of a(n) A. supervision objective. B. operational goal. C. tactical goal. D. maintenance objective. E. strategic goal.

C. tactical goal.

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

C. utilitarian

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

C. wholly owned subsidiary

What is the time frame of an operational plan? A. 2-10 years B. 1-5 years C. 6-24 months D. 1-52 weeks E. 1-90 days

D. 1-52 weeks

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

FALSE

Which of the following is a good reason to avoid delegating tasks? A. A wish to keep subordinates from taking risks. B. To avoid making subordinates deal with a difficult client. C. A desire to keep an enjoyable part of the job. D. A fear that sensitive personnel matters will not be kept private. E. A concern that subordinates could do a better job.

D. A fear that sensitive personnel matters will not be kept private.

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

D. An embargo

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

D. Clear division of labor.

Which of the following is not a likely source of information for competitive intelligence? A. Competitors' press releases B. Industry gossip C. Competitors' annual reports D. Competitor's customer records E. Sales visits to customers

D. Competitor's customer records

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

FALSE

Goodwill Industries, a charity that provides training and employment services to the disabled, is which type of organization? A. Clan B. For-profit C. Mutual-benefit D. Nonprofit E. Market

D. Nonprofit

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

D. Political-legal

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

D. Reward employees equally and consistently.

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

D. an organization

Good job design requires matching the level of responsibility to the level of A. liability. B. dependability. C. delegation. D. authority. E. position power.

D. authority.

Managers tend to give more weight to more recent behavior. This is due to the A. heuristic bias. B. halo effect. C. recency effect. D. availability bias. E. representativeness bias.

D. availability bias.

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

D. culture shock.

According to Harvard professor Constance Bagley, ethical decisions can be facilitated with a(n) A. goal statement. B. improved legal department. C. cross-department task force. D. decision tree. E. brainstorming session.

D. decision tree.

A person who is oriented toward task and technical concerns and has a low tolerance for ambiguity is ______ in his decision-making style. A. analytical B. Behavioral C. Conceptual D. directive E. heuristic

D. directive

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

D. evidence-based management.

According to Bossidy and Charan, effective ______ requires managers to build a foundation for it within three core process: people, strategy, and operations. A. tactical planning B. strategy C. follow-through D. execution E. controlling

D. execution

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

D. exporting.

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

D. functional

In a ______ structure, a firm assembles portions of product provided by outside contractors. A. compilation B. network C. outsourced D. modular E. hollow

D. modular

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

D. negotiator

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

D. open

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

D. quality assurance.

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

D. quantitative

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

D. recruitment difficulties for foreign subsidiaries.

Carla heard from a client that a product similar to a popular one at her retail store was now at Walmart, imported from China, and costing just over half of her sales price. But Carla isn't really worried because she believes in her customers' loyalty, so she has no plans to make changes. Carla is practicing A. relaxed change. B. defensive avoidance. C. postponed action. D. relaxed avoidance. E. delayed decision.

D. relaxed avoidance.

Sultan is a new manager, and he is using MBO for the first time with his subordinates. It is essential for Sultan to A. decide on goals for employees and clearly inform them of these goals. B. ask the employee to commit the goals to memory. C. set goals that are just out of the subordinate's reach. D. reward employees when they meet objectives. E. review an employee's performance once, at the end of the performance period.

D. reward employees when they meet objectives.

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

D. technological; general

Give at least four reasons that it is difficult to use evidence-based decision making

Despite your best intentions, it's hard to bring the best evidence to bear on your decisions. Among the reasons: (1) There's too much evidence. (2) There's not enough good evidence. (3) The evidence doesn't quite apply. (4) People are trying to mislead you. (5) You are trying to mislead you. (6) The side effects outweigh the cure. (7) Stories are more persuasive, anyway

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

E. 85%; 15%

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

E. A learning organization.

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

E. APEC

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

E. Customers

Passing the buck or procrastinating about a decision are examples of which type of reaction to a challenge? A. Panic B. Relaxed avoidance C. Relaxed change D. Decreased involvement E. Defensive avoidance

E. Defensive avoidance

Which type of culture has an internal focus and values stability and control over flexibility? A. Clan B. Adhocracy C. Market D. Classical E. Hierarchy

E. Hierarchy

During which managerial function do you make a blueprint for action that describes what you need to do to realize your goals? A. Organizing B. Leading C. Controlling D. Defining E. Planning

E. Planning

Which of the following best represents the strategic planning time frame that Jeff Bezos of Amazon prefers? A. Six months or less B. One to two years C. Three to five years D. Five to seven years E. Ten to twenty years

E. Ten to twenty years

_________ uses physically dispersed experts who fill out questionnaires to generate ideas and the judgments are combined into an expert consensus. A. Brainstorming B. PM C. TQM D. Brainwriting E. The Delphi technique

E. The Delphi technique

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

E. The Hawthorne studies

A person with high tolerance for ambiguity has A. a high need for structure or control. B. a strong people orientation. C. an analytical mind. D. defensive avoidance tendencies. E. comfort with uncertain situations.

E. comfort with uncertain situations.

Gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately is called A. strategic forecasting. B. corporate espionage. C. contingency planning. D. trend analysis. E. competitive intelligence.

E. competitive intelligence.

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

E. competitor

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

E. distributor.

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

E. polychronic

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

E. quality control.

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

E. representativeness bias.

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

E. skilled, effective managers

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

E. soldiering.

MBO works by cascading objectives down through the organization, and these objectives become more ______ at lower levels of the organization. A. measurable B. challenging C. results-oriented D. attainable E. specific

E. specific

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

E. strategic goal.

There are three levels of planning. Their order, from first to last, is A. operational, tactical, and strategic. B. strategic, operational, and tactical. C. tactical, operational, and strategic. D. tactical, strategic, and operational. E. strategic, tactical, and operational.

E. strategic, tactical, and operational.

Southwest Airlines acquisition of rival AirTran Airways may have been responsible for a sharp decline in on-time arrivals, which is one of Southwest's ________ goals, supporting a larger goal of being highly profitable. A. dependant B. strategic C. operational D. facilities E. tactical

E. tactical

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

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

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

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

A mission statement should be ambitious

FALSE

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

FALE

A bike messenger company that operates in the downtown area of a large city recently set the following goal: "All deliveries should be completed as quickly as possible." This example meets the criteria for a SMART goal

FALSE

A business plan is a document with the purpose of outlining a proposed firm's profit and loss statements for its first operating cycle

FALSE

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

FALSE

A small florist most likely follows a diversification strategy

FALSE

A steady-state career entails a slow-but-steady growth in level of responsibility and compensation

FALSE

A strategic position may be based on serving the few needs of a few customers

FALSE

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

FALSE

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

FALSE

A transitory career path involves a series of alternating promotions and demotions

FALSE

A vice president of production is a general manager

FALSE

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

FALSE

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

FALSE

As part of the planning process, businesses set what are known as targets, which are specific commitments to achieve measurable results within a stated period of time

FALSE

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

FALSE

Automated telephone systems are typically both very effective and very efficient

FALSE

Bad planning is usually a result of top managers' inability to gather enough information

FALSE

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

FALSE

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

FALSE

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

FALSE

Competitors compete solely for customers and raw materials.

FALSE

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

FALSE

Espoused values represent the values and norms actually exhibited in the organization

FALSE

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

FALSE

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

FALSE

Evidence shows that firms that announce layoffs have higher stock prices than their peers, both in the near term and over time

FALSE

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

FALSE

Exceptional managers have a gift that can't be taught

FALSE

Execution is tactical in nature, rather than part of a company's strategy

FALSE

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

FALSE

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

FALSE

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

FALSE

Group-driven computer-aided decision systems ask participants to answer predetermined questions on electronic keypads or dials

FALSE

Guthrie Community College has done a SWOT analysis and discovered that the number of college-bound high-school juniors in its state has grown by nearly 20% in the past few years. This is a strength for Guthrie

FALSE

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

FALSE

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

FALSE

Heuristics is a technique in which members of a group come together over a computer network to generate ideas and alternatives

FALSE

Horizontally on an organizational chart are the various companies outside of the firm, such as suppliers and distributors

FALSE

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

FALSE

If a marketing person reports to both the vice president of marketing and also to the project manager for the Ford Mustang, she works in a network organization.

FALSE

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

FALSE

If your boss asked you to take care of a task, productivity expert Odette Pollar says it is still OK to delegate it

FALSE

In MBO, objectives that employees fail to meet should be put aside for the next period in favor of ones that they can achieve

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

Keep in mind the importance of maintaining group relations; don't stand in the way of a group trying to reach consensus

FALSE

Lawrence and Lorsch's term for the tendency of an organization's parts to disperse and fragment is dissolution

FALSE

Most managers have just one dominant decision-making style

FALSE

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

FALSE

Organizationwide, the best structure for objectives in MBO is known as a diversity pattern

FALSE

Participative management has a large effect on job performance and job satisfaction

FALSE

People with a low tolerance for ambiguity and an orientation toward task and technical concerns in making decisions have an analytical decision-making style

FALSE

Perpetuation objectives are one type of objective used in MBO

FALSE

Planning helps managers to cope with events that can be predicted but id not particularly helpful when conditions are uncertain

FALSE

Planning is usually a straightjacket for new ideas, since it effectively blocks peripheral vision in favor of a predetermined course

FALSE

Planning occurs only at the highest levels of an organizations, being done by top managers

FALSE

Policies, procedures, and rules are types of single-use plans

FALSE

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

FALSE

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

FALSE

Portfolio analysis is an example of the incremental model of decision making

FALSE

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

FALSE

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

FALSE

Putting questions to a vote is a good method to help a group reach consensus

FALSE

The BCG matrix is a means of evaluating strategic business units on the basis of both their business growth rates and their profitability

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

The Mercosur is composed of countries in southeast Asia

FALSE

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

FALSE

The fit perspective assumes that the most effective cultures help organizations anticipate and adapt to environmental changes

FALSE

The four stages of organization life cycle include birth, growth, stability, and maturity

FALSE

The functional structure is the most typical type for small firms

FALSE

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

FALSE

The hierarchy of authority, or who reports to whom, is shown with horizontal lines on an organization chart.

FALSE

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

FALSE

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

FALSE

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

FALSE

The operating plan defines the course of action needed to achieve a stated goal

FALSE

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

FALSE

The pink Cadillac that Mary Kay presents to the best salespeople of its cosmetic line is an example of an emblem

FALSE

The planning/control cycle has three planning steps and three control steps

FALSE

The process of fitting the organization to its environment is called incidental design

FALSE

The rational model works well even with the incomplete information and uncertainty about consequences that managers often face

FALSE

The religion with the most followers worldwide is Hinduism.

FALSE

The starting point in establishing a grand strategy is usually an analysis of Porter's competitive forces

FALSE

The tendency for group members to agree for the sake of unanimity and thus avoid accurately assessing the decision situation is called satisficing

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

The use of hedging to manage the cost of aviation fuel is an example of trend analysis

FALSE

To be compliant with current federal legislation, all for-profit companies are required to have an ethics officer

FALSE

To effectively use evidence-based management, the more evidence you can gather, the better

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

When managers use information that is readily available from memory to make judgments, it is known as a confirmation bias

FALSE

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

FALSE

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

FALSE

When then-president of Chrysler Bob Lutz ordered the development of the Dodge Viper without supporting research but because it "just felt right," he was using the incremental model of decision making

FALSE

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

FALSE

Yichao, a manager of a downtown hair salon, has been procrastinating about a problem. Over the past year, his company has seen a high rate of customer defections, and even the loss of some of its best stylists. Still, he hasn't even begun to investigate the issue. This is an indicator of relaxed avoidance.

FALSE

You have surveyed all of your close friends, and they all prefer ice cream to frozen yogurt. Thus you should be confident that everyone prefers ice cream; that is, this is a representative sample of adequate size

FALSE

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

FALSE (e-commerce)

Define forecasting and discuss its importance. Describe the two types of forecasting described in the text.

Forecasting is developing a vision or projection of the future, which is a necessary component of strategic planning. The two types are trend analysis and contingency planning. Trend analysis is a hypothetical extension of a past series of events into the future. Contingency planning is the creation of alternative hypothetical but equally likely future conditions.

What are a manager's options if the action she decided to take isn't working? Why should a manager resist the urge to "stick it out" when feedback is negative?

If the action is not working, a manager should consider giving it more time, changing the decision or its implementation slightly, trying another alternative, or starting over. But a manager should recognize that "sticking it out" may reflect a sunk-cost or escalation of commitment bias.

What is MBO? Describe the process by which MBO is done as well as its purpose.

Management by objectives (MBO) is a four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee's performance, and (4) the manager makes a performance appraisal and rewards the employee according to results. The purpose of MBO is to motivate rather than control subordinates.

Explain the four common elements of organizations proposed by Edgar Schein

Organizational psychologist Edgar Schein proposed the four common elements of (1) common purpose, (2) coordinated effort, (3) division of labor, and (4) hierarchy of authority. The common purpose unifies employees or members and gives everyone an understanding of the organization's reason for being. The common purpose is realized through coordinated effort, the coordination of individual efforts into a group or organizationwide effort. Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people. The hierarchy of authority, or chain of command, is a control mechanism for making sure the right people do the right things at the right time.

Explain strategy implementation, including the role of resistance

Putting strategic plans into effect is strategy implementation. Strategy implementation is the stage of the strategic management process where managers determine possible roadblocks within the organization and see if the right people and control systems are available to execute the plans. Resistance may be encountered when people feel the plans threaten their livelihoods or their influence. This is especially true when plans are being implemented quickly, as delays (a form of resistance) can easily be constructed and these delays may heavily damage a plan. Thus, top managers can't just announce the plans; they have to actively sell them to middle and supervisory managers

Define the components of the acronym SMART in goal setting. Provide an example of a SMART goal and demonstrate that it meets all criteria.

SMART goals are: specific (rather than vague), measurable (quantifiable), attainable (challenging but realistic and attainable), results-oriented (support the vision), and with target dates (deadlines). An example of a SMART goal is "Ninety percent of planes should arrive within 15 minutes of the scheduled arrival time by December 2013."

Explain the difference between standing plans and single-use plans. Define the three types of standing plans, the two types of single-use plans and give examples of each.

Standing plans are plans developed for activities that occur repeatedly over a period of time. Standing plans consist of policies, procedures, and rules. A policy is a standing plan that outlines the general response to a designated problem or situation. Example: "This workplace does not condone swearing." This policy is a broad statement that gives managers a general idea about what is allowable for employees who use bad language, but gives no specifics. A procedure (or standard operating procedure) is a standing plan that outlines the response to particular problems or circumstances. Example: White Castle specifies exactly how a hamburger should be dressed, including the order in which the mustard, ketchup, and pickles are applied. A rule is a standing plan that designates specific required action. Example: "No smoking is allowed anywhere in the building." This allows no room for interpretation. Single-use plans are plans developed for activities that are not likely to be repeated in the future. Such plans can be programs or projects. A program is a single-use plan encompassing a range of projects or activities. Example: The U.S. government space program (which was to be closed by the end of 2010) had several projects, including the Challenger project and the Hubble Telescope project. A project is a single-use plan of less scope and complexity than a program. Example: The space shuttle Discovery was one project in the government's space program.

A person with a directive decision style is efficient, logical, practical, and systematic in her approach to solving problems

TRUE

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

TRUE

A procedure is a standing plan that outlines the response to particular problems or circumstances

TRUE

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

TRUE

A common challenge to strategy implementation is resistance by people within the organization

TRUE

A defensive strategy is sometimes called a retrenchment strategy

TRUE

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

TRUE

A formal vertical hierarchy shows a company's most typical channels of communication

TRUE

A functionally organized company can also use cross-functional teams to work on particular problems

TRUE

Analyzing the underlying causes of a problem or an opportunity is called diagnosis

TRUE

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

TRUE

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

TRUE

As you are promoted to higher levels in an organization, you may have to actively resist isolation.

TRUE

Danilo opened a new restaurant in Phoenix called El Barrancón. He wanted to be sure a culture of service and excellence was embedded in his new organization so he posted the values of the organization in the kitchen and in the dining room. Danilo is teaching his organization the culture through this action

TRUE

Deadlines can help one concentrate the mind, in order to make decisions rather than put them off

TRUE

Decisions that are predictable, following a well-defined set of procedures, are typical of operational planning

TRUE

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

TRUE

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

TRUE

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

TRUE

Determining an organization's mission is the responsibility of top management and the board of directors

TRUE

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

TRUE

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

TRUE

For implementation of a chosen solution in decision making to be successful, you need to plan carefully and be sensitive to those affected

TRUE

Forecasting is a strategic-planning tool used to make long-term strategy

TRUE

Intuition based on feelings rather than expertise, or the involuntary emotional response to those feelings, is known as automated experience

TRUE

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

TRUE

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

TRUE

Kraft Macaroni & Cheese is now challenged by new competitors such as Annie's and other store brands, which Porter's model for industry analysis calls the threat of new entrants

TRUE

Luxury carmaker Rolls-Royce has a focused-differentiation strategy

TRUE

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

TRUE

Management of a small company in an industry that is not very competitive should not engage in strategic planning because the small gains in performance may not be worth the effort

TRUE

Managers must be willing to make large, painful decisions to suddenly alter strategy

TRUE

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

TRUE

Many good mission statements include descriptions of an organization's customers, as well as its major products or services

TRUE

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

TRUE

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

TRUE

Mexico is part of NAFTA

TRUE

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

TRUE

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

TRUE

Organizational culture can vary widely across organizations on dimensions of treatment of employees, teamwork, and risk taking

TRUE

Organizational threats are the environmental factors that hinder an organization's ability to achieve a competitive advantage

TRUE

SMART goals that are challenging yet can be met within the available scope of time, equipment, and financial support are known as attainable, the "A" in SMART

TRUE

SWOT analysis helps management to develop a realistic understanding of the organization in relation to internal and external environments

TRUE

Sales data would be considered feedback in a system.

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

When Pfizer Pharmaceuticals manages failure and disappointment and helps drug researchers live for the small victories in discovering new drugs for various diseases, it is focusing on the adhocracy aspects of its culture

TRUE

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

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

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

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

Identify and define the approaches to deciding ethical dilemmas

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

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

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

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

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

Describe the planning/control cycle.

The planning/control cycle has two planning steps (1 and 2) and two control steps (3 and 4), as follows: (1) Make the plan. (2) Carry out the plan. (3) Control the direction by comparing results with the plan. (4) Control the direction by taking corrective action in two ways—namely, (a) by correcting deviations in the plan being carried out, or (b) by improving future plans.

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

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

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

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

Give five examples of mechanisms used by organizations to embed its culture

Those who found a business, and the managers who follow them, essentially use a teaching process to embed the values, beliefs, expectations, behaviors, and business philosophy that constitute the organization's culture. Among the mechanisms used are the following: Formal Statements: The first way to embed preferred culture is through the use of formal statements of organizational philosophy, mission, vision, and values, as well as materials used for recruiting, selecting, and socializing employees. Slogans & Sayings: The desirable corporate culture can be expressed in language, slogans, sayings, and acronyms. Stories, Legends, & Myths: These can illustrate values. Leader Reactions to Crises: How top managers respond to critical incidents and organizational crises sends a clear cultural message. Role Modeling, Training, & Coaching: They illustrate goals and values. Physical Design of workplaces is often complementary to the culture. Rewards, Titles, Promotions, & Bonuses: These demonstrate what is valued. Organizational Goals & Performance Criteria: Many organizations establish organizational goals and criteria for recruiting, selecting, developing, promoting, dismissing, and retiring people, all of which reinforce the desired organizational culture. Measurable & Controllable Activities: An organization's leaders can pay attention to, measure, and control a number of activities, processes, or outcomes that can foster a certain culture. Organizational Structure: The hierarchical structure found in most traditional organizations is more likely to reinforce a culture oriented toward control and authority compared with the flatter organization that eliminates management layers in favor of giving employees more power. Organizational Systems & Procedures: Companies are increasingly using electronic networks to increase collaboration among employees, to increase innovation, quality, and efficiency.

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

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

Why is the contingency viewpoint important?

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

In making decisions, ethical concerns need to be considered. Identify and explain how a decision tree would assist the manager in making ethical decisions

decision tree is a graph of decisions and their possible consequences, and is used to help with ethical decision making. The manager would ask several questions: Is the proposed action legal? If yes, does the proposed action maximize shareholder value? If yes, is the proposed action ethical? If no, would it be ethical NOT to take the proposed action?

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

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

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

A. Sociocultural

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

A. Sociocultural

When a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk, it is called A. relaxed change. B. defensive avoidance. C. postponed action. D. relaxed avoidance. E. delayed decision.

A. relaxed change.

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

B. Paraguay

According to Bossidy and Charan, which business process is most important for effective execution? A. Strategy B. People C. Alignment D. Operations E. Research

B. People

Which of the following is a type of objective for MBO? A. Profitability B. Personal development C. Market share D. Social responsibility E. Ethics

B. Personal development

A situational analysis is also known as A. strategic control. B. SWOT analysis. C. trend analysis. D. contingency planning. E. forecasting.

B. SWOT analysis.

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

C. Human

Cara was enthusiastic about the new decision technique being used at her office. Everyone gathered in a room with their computers and typed responses anonymously. These appeared on the screen in the front of the room. Cara felt comfortable participating fully even though she was new to the company, and by the great number of comments, it seemed that everyone else did, too. Cara participated in A. the Delphi technique. B. collaborative management. C. a group-driven computer-aided system. D. a chauffeur-driven computer aided system. E. brainstorming.

C. a group-driven computer-aided system.

Digital Globe is a technology company that provides advanced, high-resolution satellite pictures of the earth, digitalized for electronic use. As the military, governments, and others demand clear pictures, Digital Globe provides them immediately with its innovative and responsive products. Digital Globe is most likely an example of a(n) ______ culture. A. inventive B. clan C. adhocracy D. market E. hierarchy

C. adhocracy

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

C. top

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

C. transportation.

A time-series forecast, which is used to predict long-term trends, cyclic patterns, and seasonal variations, is one type of A. organizational strength. B. contingency planning. C. trend analysis. D. balanced scorecard. E. strategy formulation.

C. trend analysis.

The rational model of decision making is also called the ______ model. A. Balanced B. satisficing C. Incremental D. classical E. intuitional

D. classical

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

E. Create a psychologically safe environment.

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

E. all levels of

The "R" in SMART goal stands for "reachable"

FALSE

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

FALSE

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

FALSE

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

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

A general manager typically oversees several departments within an organization.

TRUE

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

TRUE

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

TRUE

Identify the steps of rational decision making

The steps are: Identify the problem/opportunity. Think up alternative solutions. Evaluate the alternatives and make a decision. Implement and evaluate the solution chosen.

Describe the strategic management process. Explain what the "feedback loop" is and why it is important. The strategic management process involves five steps: 1. Establish the mission and vision. 2. Establish the grand strategy. 3. Formulate the strategic plans. 4. Carry out the strategic plans. 5. Maintain strategic control.

The strategic management process involves five steps: 1. Establish the mission and vision. 2. Establish the grand strategy. 3. Formulate the strategic plans. 4. Carry out the strategic plans. 5. Maintain strategic control. The feedback loop comes out of strategic control. Through control, managers monitor progress and take corrective action early and rapidly when things go awry, returning to earlier steps to fix problems.

Which of the following is an implementation principle for evidence-based management described by Pfeffer and Sutton? A. See yourself as outsiders do. B. If all else fails, speed the spread of good practices. C. Reserve evidence-based management for top executives. D. Treat your organization as a trophy. E. Understand what happens when people succeed.

A. See yourself as outsiders do

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

A. Sociology

Faisal has been running a commercial real estate business for nearly 30 years. As he approaches retirement, he is content to simply lease the commercial space he currently has, rather than make new deals to develop additional properties. Faisal is using which grand strategy? A. Stability B. Retrenchment C. Inducement D. Defensive E. Growth

A. Stability

Which of the following is not an area in which a company needs to get and stay ahead in order to sustain a competitive advantage? A. Talented employees B. Quality C. Effectiveness D. Being responsive to customers E. Innovating

A. Talented employees

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

A. Technical

Which of the following is an example of a nonprofit organization? A. The Humane Society B. American Medical Association C. The Democratic party D. State Farm Insurance E. Teamsters Union

A. The Humane Society

Charlie has a reputation for being slow to reach a final decision but being able to decide a reasoned course of action regardless of the uncertainty. He is very thorough in collecting information and evaluating more alternatives than other managers are. Charlie is most likely ______ in his decision-making style. A. analytical B. Behavioral C. Conceptual D. directive E. relaxed

A. analytical

Managers at Thomas Canyon Credit Union have given employees raises year after year based on what they had given the year before, even though now their employees were quite underpaid compared to similar positions with other credit unions. This is an example of a(n) A. anchoring and adjustment bias. B. escalation of commitment bias. C. sunk-cost bias. D. availability bias. E. representativeness bias.

A. anchoring and adjustment bias.

The stores of data so vast that conventional database management systems cannot handle them and which instead require very sophisticated analysis software and supercomputing-level hardware are known as A. big data. B. heuristics. C. information escalation. D. incremental diagnostics. E. boundless resources.

A. big data.

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

A. disseminator

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

A. economic

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

A. ethics.

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

A. ethnocentric

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

A. exchange rate

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

A. leadership

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

A. licensing.

An organization that contains two command structures, and in which some people actually report to two bosses, is a ______ structure. A. matrix B. bifunctional C. team-based D. hybrid E. network

A. matrix

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

A. multinational organization.

Which of the following comes LAST when an organization makes a plan? A. operational planning B. mission statement C. strategic planning D. tactical planning E. vision statement

A. operational planning

The skills and capabilities that give the organization advantages in executing strategies in pursuit of its mission are known as A. organizational strengths. B. organizational opportunities. C. organizational threats. D. organizational weaknesses. E. competitive strategies.

A. organizational strengths.

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

A. outsourcing.

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

A. owners.

One type of standing plan, the __________, outlines the general response to a designated problem or situation. A. policy B. project C. rule D. procedure E. program

A. policy

After setting goals, managers should next A. prepare an action plan for accomplishing the goals. B. propose changes to the goals of same-level managers to bring all into alignment. C. supervise subrdinates closely. D. report failure to meet goals to superiors. E. begin the planning process anew.

A. prepare an action plan for accomplishing the goals.

The obligation you have to perform the tasks assigned to you is called A. responsibility. B. accountability. C. delegation. D. authority.

A. responsibility.

A grand strategy that involves reduction in the organization's efforts is the ______ strategy. A. retrenchment B. reorganization C. downsizing D. growth E. stability

A. retrenchment

Montpellier Mediterranean Designs has decided that, as part of the fashion industry, it should move to a more organic structure. Montpellier should A. simplify and eliminate rules and procedures. B. centralize authority. C. clearly define job responsibilities. D. disband teams and task forces. E. focus on improving uniformity.

A. simplify and eliminate rules and procedures.

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

A. social responsibility.

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

A. special-interest group; task

Describe Carroll's global corporate social responsibility pyramid.

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

The goal to "improve the quality of customer service by instituting follow-up telephone calls this month" is not a SMART goal because it is A. unlikely to align with higher level goals. B. not measurable. C. too simplistic. D. not results oriented. E. unlikely to result in improvement to customer service.

B. not measurable.

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

B. symphony orchestra.

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

B. tariff.

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

B. task

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

B. technical

Amanda has just determined that her employees will require extensive training if they are to acquire the necessary technological expertise to produce a new product line. She has discovered one of her firm's A. strengths. B. weaknesses. C. opportunities. D. threats. E. market challenges.

B. weaknesses.

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

B. when it is in a very competitive industry.

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

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

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

B. Lower labor costs

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

B. Maintain strategic control.

MBO stands for A. Management by Observation. B. Management by Objectives. C. Management by Ownership. D. Management by Obligation. E. Management by Organization.

B. Management by Objectives.

Which of the following is an example of a mutual-benefit organization? A. Federal Bureau of Investigation B. United Steelworkers of America union C. University of California at Berkeley D. U.S. Postal Service E. Public Broadcasting System

B. United Steelworkers of America union

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

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

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

B. WTO

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

B. foreign work experience

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

B. franchising.

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

B. free trade.

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

B. globalization.

Casey has a simple rule that he follows when it comes to new hiring; if four or more of his staff are working 20% or more overtime, he hires another employee. Casey is using A. relaxed change. B. heuristics. C. the Delphi technique. D. rational models. E. brainwriting.

B. heuristics.

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

B. highly experienced

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

B. innovation.

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

B. intrapreneurship.

The ______ a group is, the ______ the quality of the decision. A. more diverse; lower B. larger; lower C. more confident; higher D. more knowledgeable; lower E. more creative, lower

B. larger; lower

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

B. low-context culture

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

B. macroenvironment.

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

B. middle manager.

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

B. multiplier

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

B. necessity entrepreneur.

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

C. Conceptual

The common grand strategies are A. star, question mark, cash cow, and dog. B. cost-leadership, differentiation, cost focus, and focused differentiation. C. growth, stability, and defensive. D. strengths, weaknesses, opportunities, and threats. E. defender, prospector, analyzer, and reactor.

C. growth, stability, and defensive.

An organization's ______ is a control mechanism for making sure the right people do the right things at the right time. A. central command B. division of labor C. hierarchy of authority D. span of control E. strategic plan

C. hierarchy of authority

When analyzing the "W" in SWOT analysis, a manager might take note of A. a decrease in consumer demand. B. a competitor's bankruptcy. C. high turnover of employees. D. good financial resources of the firm. E. institution of a tariff on foreign competitors.

C. high turnover of employees.

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

C. importing.

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

C. innovation

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

C. input

Rorschach Composites has precise requirements and very detailed procedures for creating small machine parts through an injection molding process. Because of the sensitive processes, employees are tightly monitored. Rorschach is a(n) ______ organization. A. hybrid B. integrated C. mechanistic D. flat E. organic

C. mechanistic

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

C. middle managers.

A system of consciously coordinated activities or forces of two or more people is known as a(n) A. operation. B. culture. C. organization. D. structure. E. adhocracy.

C. organization.

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

C. outsourcing.

Robin is very worried about potentially having to lay off several of her staff. She can't sleep well, her stomach is bothering her, and she snaps at her employees. She doesn't know what to do but won't talk with anyone about it. Robin is experiencing a ______ reaction to a challenge. A. relaxed change B. defensive avoidance C. panic D. deciding to decide E. heuristic

C. panic

NASA's Curiosity Rover, employed to investigate a large crater on Mars, is an example of a A. policy. B. rule. C. project. D. procedure. E. program.

C. project.

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

C. resource allocator

In an organic organization, A. authority is centralized. B. bureaucracy is essential. C. the need to respond to unexpected tasks is common. D. many rules and procedures exist. E. success is possible only when the environment is stable. In an organic organization, authority is decentralized, there are fewer rules and procedure

C. the need to respond to unexpected tasks is common.

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

C. the only one of its kind.

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

C. the question is understood.

In deciding to decide about a problem or opportunity, a manager should evaluate the importance of the situation, the credibility of the information, and A. the equitability of the outcomes. B. the availability of heuristics. C. the urgency of the situation. D. the cost of the solution. E. the ethics of making no change.

C. the urgency of the situation.

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

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

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

D. effective

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

D. embedding culture.

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

D. entrepreneurs.

In the final stage of the rational model of decision making, you should A. provide justification for the choice. B. select a solution. C. seek high-level support. D. evaluate the results. E. identify the winners and losers.

D. evaluate the results.

Which of the following is not one of the forces that affects industry competition, according to Porter's model for industry analysis? A. Threats of new entrants. B. Threats of substitute products and services. C. Bargaining power of buyers. D. Threats of government interference. E. Bargaining power of suppliers.

D. Threats of government interference.

Which of the following would be considered a reason for adopting strategic management and strategic planning? A. To enhance employee loyalty. B. To keep corporate taxes at a minimum. C. To develop independent work from the staff. D. To provide develop a sustainable competitive advantage. E. To increase market dominance with repeat purchase.

D. To provide develop a sustainable competitive advantage.

Which of the following is a practical guideline in determining whether to use group decision making? A. When it can encourage satisficing B. When it can increase speed C. When it can produce groupthink D. When it can increase development E. When a decision occurs infrequently

D. When it can increase development

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

D. an employee stock ownership plan.

As Janine prepares to perform Ian's performance review, she carefully reviews notes she made throughout the year, rather than relying just on what she remembers. Janine is attempting to avoid the ______ bias. A. sunk-cost B. adjustment C. representativeness D. availability E. escalation of commitment

D. availability

Hollow, modular, and virtual structures lead to a ________ organization. A. functional B. network C. simplistic D. boundaryless E. matrix

D. boundaryless

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

D. distributor

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

D. friendliness.

The Federal Reserve Bank has 12 separate districts around the United States, which means it is using ______ in its organizational structure. A. functional constituencies B. locality divisions C. site networks D. geographic divisions E. matrix regions

D. geographic divisions

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

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

A Ritz-Carlton beach attendant who surprised a couple with flowers, candles, and champagne for the man's proposal was able to transmit the culture of the luxury hotel to other employees, so he would be considered a A. champion. B. key employee. C. potential manager. D. hero. E. superior.

D. hero.

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

D. in-group collectivism.

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

D. knowledge management.

According to Lawrence and Lorsch, the ______ determine(s) the degree of differentiation or integration that is appropriate. A. resources available to an organization B. governmental pressures on an organization C. organization's culture D. stability of an organization's environment E. size of the organization

D. stability of an organization's environment

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

D. strategic alliance.

"Find out what customers want, then provide it to them as cheaply and quickly as possible" is Walmart's A. growth plan. B. technical plan. C. synergy. D. strategy. E. forecast.

D. strategy.

When analyzing the "S" in a SWOT analysis, a manager might take note of A. a decrease in the size of the market. B. competitors' new products. C. high turnover of employees. D. strong financial resources of the firm. E. lifting of governmental regulations.

D. strong financial resources of the firm.

The incremental model of decision making suggests that managers make decisions by A. using processes that have worked in past experience. B. experimenting with alternatives in a controlled setting, one by one. C. choosing something that is "good enough." D. taking small steps to alleviate a problem. E. involving several lower-level employees.

D. taking small steps to alleviate a problem.

In a mechanistic organization, A. most communication is informal. B. many teams and task forces are operating simultaneously. C. authority is decentralized. D. tasks and rules are clearly specified. E. employees are joined through technology.

D. tasks and rules are clearly specified.

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

D. the manager's happiness.

The idea that decision makers find the notion of an actual loss more painful than giving up the possibility of a gain is called A. a heuristic. B. an availability bias. C. a representativeness bias. D. the prospect theory. E. satisficing.

D. the prospect theory.

Alexis has prepared a report that details how prices for several raw materials her firm uses in production have risen by up to 30% in the last year. Her report would be an input into the __________ part of a SWOT analysis. A. strengths B. weaknesses C. opportunities D. threats E. structure

D. threats

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

D. unions

Another term for the chain of command within an organization, as represented on an organizational chart, is A. reporting linkage. B. span of control. C. horizontal specialization. D. vertical hierarchy. E. network structure.

D. vertical hierarchy.

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

D. whistle-blower.

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

D. work to generalize ideas with impact.

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

D. mutual-benefit

When managers must be closely involved with their subordinates, they should have a ______ span of control. A. flexible B. wide C. flat D. narrow E. lean

D. narrow

When a firm responds to uncertainty in its environment as a(n) ________, its continual pursuit of product and market innovation may lead to a loss of efficiency, but is likely to make competitors nervous. A. reactor B. analyzer C. defender D. prospector E. executor

D. prospector

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

E. Threats of substitute products and services.

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

E. Tolerance for risk

Durant Security operates across Florida and Georgia with a variety of products and services. It has a unit located in Tampa that provides home security to its clients, and another unit in Atlanta that provides security for businesses, in particular banks and high-technology firms. This is a ______ structure. A. functional B. simple C. geographic divisional D. matrix E. customer divisional

E. customer divisional

Among the functions of organizational ________ are that it gives members an organizational identity and it promotes social-system stability. A. design B. structure C. life cycle D. charting E. culture

E. culture

Jennifer's staff enjoys working for her but thinks she is a perfectionist. She often thinks that she is the only one who can handle her division's difficult clients or handle some of the most sensitive issues, so she frequently has problems with A. responsibility. B. allocation. C. accountability. D. authority. E. delegation.

E. delegation

Ryan is an efficient manager who is very good at meeting his deadlines and quite decisive. Still, his employees find him to be too controlling at times and unable to see the long-term consequences of his actions. Ryan is most likely ______ in his decision-making style. A. analytical B. autocratic C. Behavioral D. Conceptual E. directive

E. directive

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

E. dumping.

Although managers may wish to affect employees with explicitly stated values, they are frequently more influenced by ______ ones. A. subversive B. expressed C. espoused D. adopted E. enacted

E. enacted

The adaptive cycle portrays businesses as continuously cycling through three kinds of business decisions: entrepreneurial, ______, and administrative A. leadership B. alignment C. organization D. production E. engineering

E. engineering

Careful monitoring of an organization's internal and external environment to detect early signs of opportunities and threats that may influence the firm's plans is called A. competitive intelligence. B. forecasting. C. contingency planning. D. trend analysis. E. environmental scanning.

E. environmental scanning.

Having just spent $1,500 for a new engine for his old car, Danilo now learns his transmission needs to be replaced. He decides to junk the car now, rather than repair it. Danilo has avoided the __________ bias. A. anchoring and adjustment B. confirmation C. availability D. representativeness E. escalation of commitment

E. escalation of commitment

An organization that offers unique, superior products or services to a narrow market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. diversification. E. focused differentiation.

E. focused differentiation.

The tendency for decision-makers to be influenced by the way a situation or problem is presented to them is known as the ________ bias. A. overconfidence. B. escalation of commitment bias. C. hindsight. D. availability. E. framing.

E. framing

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

E. general

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

E. geocentric

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

E. government regulator; task environment

The process of involving employees in setting goals, making decisions, solving problems, and making changes is called A. conjoint management. B. escalation of commitment. C. satisficing. D. goal displacement. E. participative management.

E. participative management.

A manager assessing the organization's access to capital is involved in analysis of A. strengths. B. weaknesses. C. opportunities. D. threats. E. strengths or weaknesses depending on the outcome of the assessment.

E. strengths or weaknesses depending on the outcome of the assessment.

When managers add up all the money already spent on a project and conclude it is too costly to simply abandon it, it is known as a(n) ________ bias. A. anchoring and adjustment B. confirmation C. availability D. representativeness E. sunk cost

E. sunk cost

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

E. sustainability.

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

E. systems

Executive management has recently decided to acquire a small company with a complementary product line, so Craig, a marketing manager, is meeting with other managers to discuss how to implement policies to support the acquisition over the next year. He is participating in A. mission development. B. strategic planning. C. controlling. D. operational planning. E. tactical planning.

E. tactical planning.

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

E. top managers.

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

E. total quality management.

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

E. trade protectionism.

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

E. values.

A supervisor of an assembly line has 45 employees that report to her; this would be considered a(n) ______ span of control. A. unsustainable B. tall C. deep D. complex E. wide

E. wide

A vision will be demoralizing to employees if it describes a future state that appears beyond the reach of the organization

FALSE

According to Burt Nanus, good vision statements are useful because they help people to consider all interesting elements in their environments

FALSE

According to Miles and Snow's basic strategy types, a defender protects its strong position in an industry by constantly seeking new opportunities for growth

FALSE

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

FALSE

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

FALSE

Administrative management is most concerned with the jobs of individuals

FALSE

After the assessment of current organizational performance, the subsequent explanation of how its mission is to be accomplished is called a comprehensive strategy

FALSE

Allowing business-casual dress in the workplace is an example of the espoused values portion of organizational culture

FALSE

Amazon's statement in which it states its desire to "be the earth's most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online" is a mission statement

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

An organization is said to be flat when there are only a few levels with wide spans of control.

FALSE

An organization with different groupings of people based on its products, customers, or geographic regions has a functional structure

FALSE

Arabs prefer a larger interpersonal space when communicating than Americans.

FALSE

Blockbuster Video was slow to adapt to the latest trends in its industry, such as DVD-by-mail and movie downloads online. When it tried to incorporate the same into its business model, it was well behind competitors like Netflix. Blockbuster might be defined as a defender, according to Miles and Snow

FALSE

Business founders and subsequent managers primarily use power and coercion to embed the culture into the organization

FALSE

Companies that must respond to fast-changing customer tastes often favor a mechanistic structure to an organic one

FALSE

Contingency planning is a hypothetical extension of a past series of events into the future

FALSE

Corporate culture is as also known as organizational structure

FALSE

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

FALSE

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

FALSE

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

FALSE

Customers who experience poor customer service are more likely to tell the company about it than to tell family or friends

FALSE

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

FALSE

Efficiency and effectiveness are terms used interchangeably and equivalently in management

FALSE

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

FALSE

Fawaz is contemplating a couple of new options for the order takers that he manages. There is no great urgency in the situation; he just needs to have a procedure in place within a couple of months. Fawaz would be wise to make this decision by himself

FALSE

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

FALSE

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

FALSE

For established companies, financial institutions are not external stakeholders.

FALSE

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

FALSE

Ford's Sync in-dash communications platform, despite its high level of technology, has been unable to provide the company with a distinct competitive advantage

FALSE

Formal business plans can be dangerous to the survival of new businesses; many who try them fail because of the resources required to write and agree upon the plan.

FALSE

Frank and Lillian Gilbreth were chief proponents of administrative management.

FALSE

General Electric sells lighting products and is also involved in plastics, broadcasting, and financial services. GE uses a related diversification strategy

FALSE

Geocentric policies have been linked to recruiting difficulties and high turnover

FALSE

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

FALSE

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

FALSE

Good strategy allows a company to be everything to everyone

FALSE

In Porter's model for industry analysis, there are three primary competitive forces in a firm's environment

FALSE

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

FALSE

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

FALSE

In a cost-leadership strategy, an organization targets a wide market and offers products or services of unique and superior value compared to competitors

FALSE

In a world of rapid and discontinuous change, the ability to please nonmanagerial employees has been called the golden trait among managers

FALSE

In an organization's approach to planning, its mission and vision statements should be created once the strategic planning process is complete

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

In single-use plans, a program is another name for a project

FALSE

In the planning/control cycle, carrying out the plan is one of the control steps

FALSE

In this time of Internet connections and speedy-access computer databases, one typically has complete information for planning and decision making

FALSE

MBO was developed by Frederick Taylor as part of scientific management

FALSE

Managers who execute well insist on constant optimism

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

Nonrational models of decision making describe how managers should make decisions rather than how they actually do

FALSE

Obsolete technology and outdated facilities are examples of organizational threats

FALSE

One advantage of decentralized organizations is that procedures are uniform and thus easier to control

FALSE

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

FALSE

One of the ways to keep a strategic plan on track is to make it very comprehensive, covering as many scenarios for the future as you can

FALSE

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

FALSE

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

FALSE

Only for-profit organizations can be meaningfully represented by an organization chart

FALSE

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

FALSE

Operational goals are set by middle managers and focus on the actions needed to achieve strategic goals.

FALSE

Operational planning is normally performed by middle management

FALSE

Opportunities should be identified in the alternative evaluation stage of the decision-making process

FALSE

Organizational culture appears as three layers: observable artifacts, token values, and foundational beliefs

FALSE

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

FALSE

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

FALSE

Relaxed change is one type of effective response for a manager to take when confronted with a challenge

FALSE

SMART is an acronym that represents characteristics necessary to motivate employees in their periodic reviews

FALSE

Satisficing occurs when a manager takes small, short-term steps to alleviate a problem.

FALSE

Sharing stories, legends, or myths are good ways to develop an organizational structure

FALSE

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

FALSE

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

FALSE

Sometimes an organizational structure can be strong enough to take the place of organizational culture

FALSE

Southwest Airlines' goal of being highly profitable is a tactical goal

FALSE

Strategic conservation attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company

FALSE

Strategic management is the process of involving nonmanagerial employees in the formulation and implementation of strategies and strategic goals

FALSE

Strategic planning is appropriate for large companies, but does not help the performance of small companies

FALSE

Strategy actualization is the term for putting strategic plans into effect

FALSE

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

FALSE

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

FALSE

Synergy is one of the benefits of a single-product strategy

FALSE

Tactical planning is done by first-line managers, who look forward to the next 1-8 weeks

FALSE

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

FALSE

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

FALSE

The Red Cross is an example of a mutual-benefit organization

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

The classical viewpoint emphasized ways to manage work more independently.

FALSE

The conceptual style of decision making is the most people oriented of the styles

FALSE

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

FALSE

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

FALSE

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

FALSE

The division of labor means that an employee should report to no more than one manager

FALSE

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

FALSE

The first stage of in an organization's life cycle is known as the creation stage

FALSE

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

FALSE

The first step in an MBO program is for the manager to set objectives for her subordinate

FALSE

The first step in the rational decision making process is to think up alternative solutions

FALSE

The first step of the strategic-management process is to establish the grand strategy

FALSE

The primary purpose of competitive intelligence is to challenge the thinking of employees to make them better equipped to produce novel ideas for business

FALSE

The process of a business cycling through decisions first to select products and markets, then about producing and delivering the products, and finally to establish roles and processes is known as the discovery cycle FALSE

FALSE

The process of identifying and choosing between alternative courses of action is known as option evaluation

FALSE

The psychological mechanism of motivated blindness discourages cheating among students.

FALSE

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

FALSE

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

FALSE

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

FALSE

The rational model of decision making assumes that managers will choose the available alternative that best supports their existing beliefs

FALSE

Two types of entrepreneurs include the extrapreneur and the intrapreneur.

FALSE

Two types of forecasting are trend analysis and competitive intelligence

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

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

FALSE

When evaluating alternatives in decision making, you must assess cost and quality and also ask the question, "Is it simple?

FALSE

How is management both an art and a science?

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

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

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

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

TRUE

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

TRUE

Alaska Airline was profitable in 2011, prompting is to decide to remain a "smallish, specialized, regional airline in a world of global giants," which is an example of a stability strategy

TRUE

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

TRUE

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

TRUE

An adhocracy culture attempts to create innovative products by being adaptive, creative, and quick to respond to the environment

TRUE

An advantage in using centralized authority is that there is less duplication of work, because fewer employees perform the same task

TRUE

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

TRUE

An example of a trading bloc is the European Union.

TRUE

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

TRUE

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

TRUE

An investigation of companies with different organizational cultures showed that long-term financial performance was highest for those with an adaptive culture

TRUE

An organization chart typically takes on a family-treelike pattern, with many boxes and lines showing official positions and reporting relationships

TRUE

An organization is said to be flat when there are only a few levels with wide spans of control.

TRUE

An organization should adopt strategic management and strategic planning to encourage new ideas

TRUE

An organization's basic assumptions are difficult to change

TRUE

An organization's goals arranged in a hierarchy from low level to high level can be termed a means-end chain

TRUE

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

TRUE

Analytics have been used in baseball and basketball to find undervalued players that could help teams that had limited resources to pay superstars

TRUE

Because it is unrealistic for SMART goals to be accomplished overnight, they should have target dates

TRUE

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

TRUE

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

TRUE

Being "loss adverse" and hating to admit you're wrong can contribute to the escalation of commitment bias.

TRUE

Bombardier builds eight-passenger business jets from 12 separately sourced portions which can be put together in four days. This firm has a modular organizational structure

TRUE

Brainstorming is a technique used to help groups generate multiple ideas and alternatives for solving problems.

TRUE

Burberry makes outerwear, accessories like umbrellas, and children's clothing, which is called a related diversification strategy.

TRUE

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

TRUE

By definition, an organization can be composed of as few as two people

TRUE

Capital One uses predictive modeling by conducting experiments to evaluate which customers will sign up for credit cards and pay back their debt

TRUE

Cash cows in the BCG matrix have slow growth but high market share

TRUE

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

TRUE

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

TRUE

Confidential matters and issues involving discipline cannot be effectively delegated

TRUE

Consensus occurs when group members are able to express their opinions and reach agreement to support the final decision

TRUE

Contingency planning can also be called scenario analysis

TRUE

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

TRUE

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

TRUE

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

TRUE

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

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

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

TRUE

Eastman Kodak, though it actually invented the digital camera, was slow to move into the production of this product as well as digital printers. Its continued reliance untraditional 35mm film production and processing, which resulted in its bankruptcy, makes it a reactor accruing to Miles and Snow

TRUE

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

TRUE

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

TRUE

When evaluating a solution in decision making, answering yes to which of the following questions should cause you to reconsider choosing it? A. Is there enough time? B. Are the costs reasonable? C. Is it ethical? D. Is the technology available? E. Do you consider it merely "good enough"?

E. Do you consider it merely "good enough"?

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

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

Ethnocentrism is a form of parochialism

TRUE

Experts may make irrational decisions because they are unable to see things from an outsider's perspective

TRUE

External stakeholders include labor unions.

TRUE

Facebook strives to be on the cutting edge of social media and is experiencing phenomenal growth. It encourages what it calls a "hacker" mindset, always looking to break down the old in favor of something better. Of Miles and Snow's basic strategy types, Facebook would be described as a prospector.

TRUE

Feedback is one of the four parts of a system.

TRUE

For IKEA, whose vision is "to create a better life for the many," the inexpensive LACK side table would be considered a symbol

TRUE

Ford Motor Co. has what is known as a divisional structure because it has different divisions for passenger car dealers, large trucking customers, and farm products customers

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

Great communications systems have been a hallmark of great civilizations.

TRUE

Groups make better decisions than most individuals acting alone

TRUE

Harvard Business School professor Michael Porter is a leading authority on competitive strategy

TRUE

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

TRUE

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

TRUE

Heuristics are strategies that simplify the process of making decisions

TRUE

Hierarchy of authority is also referred to as the chain of command

TRUE

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

TRUE

Human trafficking is unethical according to the moral-rights approach

TRUE

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

TRUE

If a chosen alternative is implemented and it does not appear to be working, you may need to give it more time

TRUE

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

TRUE

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

TRUE

Importance of the situation, the credibility of the information about it, and the urgency of it should be considered in the decision about whether to decide

TRUE

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

TRUE

In an organization, culture exists on both visible and unobservable levels

TRUE

In general, organizations become more bureaucratic over their lifetimes

TRUE

In order for MBO to be successful, it must be implemented throughout the entire organization

TRUE

In the planning/control cycle, comparing the results with the plan is one of the control steps

TRUE

In the planning/control cycle, part of the control process can be to improve future plans

TRUE

Internal stakeholders include the employees of an organization.

TRUE

Microsoft has been accused of adapting competitors' products after those firms spent the resources and took the risks to develop them. Companies with this strategy are known as analyzers by Miles and Snow

TRUE

Middle and supervisory managers may be a source of resistance in participatory management

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

One problem with the incremental model is that temporary steps may actually impede a beneficial long-term solution

TRUE

Organizations may turn to the strategic-management process after a crisis

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

Philanthropy means making charitable donations to benefit humankind.

TRUE

Planning and strategic management derive from an organization's mission and vision about itself

TRUE

Planning gives you expectations against which you can compare your performance

TRUE

Politics has provided evidence that appeals to emotion are more effective than appeals to logic in decision making

TRUE

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

TRUE

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

TRUE

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

TRUE

Research shows that organizations with market cultures report higher profits and financial growth

TRUE

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

TRUE

Risk propensity is the willingness to gamble or to undertake risk for the possibility of getting an increased payoff

TRUE

Sandra did an Internet search for Jamaican hotels when she was setting up her vacation, but found over 7 million results, of which she could only handle looking at about two pages. Sandra is operating under conditions of bounded rationality

TRUE

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

TRUE

Smaller-sized groups make higher-quality decisions

TRUE

Some firms do not have a board of directors.

TRUE

Southwest Airlines' goal of making arrival times more reliable is a tactical goal

TRUE

Staff personnel have authority functions in that they provide advice, recommendations, and research to line managers

TRUE

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

TRUE

Strategic goals focus on objectives for the organization as a whole

TRUE

Strategic planning determines goals for an organization for a period of 1-5 years

TRUE

Strategic positioning can be achieved by performing similar activities to rivals, but in different ways

TRUE

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

TRUE

Studies show that even severe life events have a negative impact on one's sense of well-being for no more than about three months

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

The U.S. government space program is an example of a single-use plan

TRUE

The World Health Organization is an example of a multinational organization

TRUE

The administrative part of the adaptive cycle focuses on establishing roles and organizational processes

TRUE

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

TRUE

The career path that most resembles the traditional view of climbing the stairs in a corporate hierarchy is called the linear career

TRUE

The drawback of using the intuition model of decision making is that it can be difficult to convince others that your decision makes sense

TRUE

The final step in the rational decision-making process is to implement and evaluate the chosen solution

TRUE

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

TRUE

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

TRUE

The founder of McDonald's, Ray Kroc, intended that a Big Mac should taste the same anywhere, and accordingly, the company has many specific procedures, making it a mechanistic organization

TRUE

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

TRUE

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

TRUE

The incremental model is a nonrational model of decision making

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

The operating plan identifies clear targets such as revenues and cash flow

TRUE

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

TRUE

The practice of management is both an art and a science

TRUE

The purpose of MBO is to motivate subordinates

TRUE

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

TRUE

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

TRUE

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

TRUE

Too little or unreliable historical data may result in erroneous trend analyses

TRUE

When QVC experiments with which products it will sell on its television shopping network and follows this up with analysis of why some sell and others don't, it is using evidence-based management

TRUE

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

TRUE

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

TRUE

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

TRUE

When a manager makes a decision based on the strong beliefs she already has, she is guilty of a prior-hypothesis bias

TRUE

When employees are forced to adhere to an organization's values through extensive procedures and bureaucracies, its culture is said to be weak

TRUE

When the National Football League annually presents the winners of the Super Bowl with rings in a ceremony, it is an example of a ritual

TRUE

Where time is of the essence, in most cases an individual should make the decision rather than a group

TRUE

Women investors make trades much less often than men, do a lot more research, and have better returns on average

TRUE

You can increase your ability to influence others by being aware of decision-making styles

TRUE

Identify the assumptions of the rational decision-making model. Do these hold true in most situations?

The assumptions are: 1. There is complete information and no uncertainty. 2. Logical and unemotional analysis is possible. 3. The best decision for the organization will be chosen. The assumptions may not hold true in most situations. According to the research by Herbert Simon, managers cannot truly act logically because of bounded rationality. Constraints include complexity, time, cognitive capacity, and imperfect or too much information, among others

List the characteristics that most entrepreneurs have.

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

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

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

Explain what centralization and decentralization of authority mean. Would you rather be a manager in a centralized or a decentralized organization? Why?

The student should define both terms and then give a logical explanation of their preference. With centralized authority, important decisions are made by higher-level managers; while with decentralized authority, important decisions are made by middle-and supervisory-level managers. An advantage in using centralized authority is that there is less duplication of work, because fewer employees perform the same task; rather, the task is often performed by a department of specialists. Another advantage of centralization is that procedures are uniform and thus easier to control; all purchasing, for example, may have to be put out to competitive bids. An advantage in having decentralized authority is that managers are encouraged to solve their own problems rather than to buck the decision to a higher level. In addition, decisions are made more quickly, which increases the organization's flexibility and efficiency.

List at least five of the seven essential types of leader behaviors that are needed to fuel the engine of execution

The seven essential types of leader behaviors are: 1. Know your people and your business: engage intensely with your employees. 2. Insist on realism: don't let others avoid reality. 3. Set clear goals and priorities: focus on a few rather than many goals. 4. Follow through: establish accountability and check on results. 5. Reward the doers: show top performers that they matter. 6. Expand people's capabilities: develop the talent. 7. Know yourself: do the hard work of understanding who you are.

A market culture has a strong external focus and values stability and control

TRUE

A marketing plan is an example of an action plan

TRUE

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

TRUE

A spiral career path depends on having jobs that, while fundamentally different, build on one another

TRUE

A strategy is a large-scale action plan that sets direction for an organization

TRUE

A sustainable competitive advantage is the ability of an organization to produce goods or services more effectively than its competitors and outperform them

TRUE

A vision has a clear sense of the future and the actions needed to get there

TRUE

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

TRUE

A vision or projection of the future is called a(n) A. trend. B. forecast. C. contingency. D. strategy. E. opportunity.

B. forecast.

A disadvantage of group-aided decision making is that groups tend to suppress an individual's intellectual stimulation and creativity

FALSE

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

FALSE

A formal system of task and reporting relationships that coordinate and motivate an organization's members is known as an organizational configuration.

FALSE

A good vision statement should describe a company's major strengths and competitive advantage in its industry

FALSE

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

FALSE

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

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

Identify the four general decision making styles. Explain the two primary characteristics which define each.

1. Directive: People with a directive style have a low tolerance for ambiguity and are oriented toward task and technical concerns in making decisions. 2. Analytical: People with an analytical style have a high tolerance for ambiguity and are oriented toward task and technical concerns in making decisions. 3. Conceptual: People with a conceptual style have a high tolerance for ambiguity and are oriented toward people and social concerns in making decisions. 4. Behavioral: People with a behavioral style have a low tolerance for ambiguity and are oriented toward people and social concerns in making decisions.

Explain the three core processes of business and how they relate to execution

A company's overall ability to execute is a function of effectively executing in terms of its people processes, strategic processes, and operational processes. People process: An effective leader tries to evaluate talent by linking people to particular strategic milestones, developing future leaders, dealing with nonperformers, and transforming the mission and operations of the human resource department. Strategic processes: A good strategic plan addresses nine questions. In considering whether the organization can execute the strategy, a leader must take a realistic and critical view of its capabilities and competencies. Operations processes: The strategy process defines where an organization wants to go, and the people process defines who's going to get it done. Operations or the operating plan provides the path for people to follow. The operating plan should address all the major activities in which the company will engage and then define short-term objectives for these activities, to provide targets for people at which to aim.

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

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

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

A. Administrative management

Katsuro started a tax consulting business with his friend Carey. They have a small space in a strip mall and one administrative assistant. At which stage of the organizational life cycle is their business? A. Birth stage B. Introduction stage C. Adolescent stage D. Youth stage E. Midlife stage

A. Birth stage

Which of the following is not a stage in the strategic-management process? A. Conduct a trend analysis. B. Maintain strategic control. C. Establish the grand strategy. D. Establish the mission and vision. E. Carry out the strategic plans.

A. Conduct a trend analysis.

______ help you ignore extraneous matters in favor of focusing on what's important, which is realizing the goals on time and on budget. A. Deadlines B. Relationships C. Changes D. Networks E. Options

A. Deadlines

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

A. Decision makers can logically evaluate the alternatives.

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

A. Disturbance handler

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

A. Entrepreneurship

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

A. Environmental action

______ values are the explicitly stated values and norms preferred by an organization. A. Espoused B. Inherent C. Enacted D. Expressed E. Internalized

A. Espoused

Which of the following carmakers pursues a focused-differentiation strategy? A. Ferrari B. Ford C. Volkswagen D. Honda E. Kia

A. Ferrari

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

A. Figurehead

Which of the following is NOT a rule for brainstorming suggested by IDEO? A. Go for quality over quantity. B. Defer judgment. C. Stay focused on the topic. D. Encourage wild ideas. E. Be visual.

A. Go for quality over quantity.

Because Greg and Karen were having an argument about the order of their respective projects on the website, they were unable to work with the rest of the management team to come up with a staffing schedule. This is an example of what potential problem that occurs in groups? A. Goal displacement B. Satisficing C. Groupthink D. Heuristics E. Availability bias

A. Goal displacement

Which of the following is not a question that Bossidy and Charan believe a strong strategic plan must address? A. How will deviations from the plan be handled? B. What is the assessment of the external environment? C. What are the critical issues facing the business? D. Can the business execute the strategy? E. Are the short term and long term balanced?

A. How will deviations from the plan be handled?

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

A. Hugo Munsterberg

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

A. Hugo Munsterberg

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

A. Humane orientation

Diagnosis is used in which stage of the rational decision-making model? A. Identify the problem or opportunity B. Think up alternative solutions C. Evaluate alternatives D. Select a solution E. Implement a solution

A. Identify the problem or opportunity

Jenna manages a retail store and she has been noticing long lines at checkout lately. She is unsure about increasing staffing levels right now, so she chooses to reconfigure the physical orientation of the checkout space to alleviate the problem for the time being. Jenna is using the ________ model. A. Incremental B. coalition C. rational D. predictive E. intuition

A. Incremental

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

A. Inspection crew incentives that encouraged false reporting.

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

A. Scientific management

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

A. Management science

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

A. Organizing

Many investment advisors attribute their successful outcomes to skill, even when it is more likely luck, which is an example of which bias? A. Overconfidence. B. Escalation of commitment bias. C. Hindsight. D. Availability. E. Framing.

A. Overconfidence.

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

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

Which of the following is characteristic of companies that use analytics? A. Use of predictive modeling B. Having a single, focused application for its use C. Information overload D. Use of competitive intelligence E. Making decisions intuitively

A. Use of predictive modeling

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

A. World Bank

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

A. World Trade Organization

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

A. a reduction in production variation.

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

A. climate

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

A. closed system

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

A. competitive advantage.

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

A. contingency

Creation of alternative hypothetical but equally likely future conditions is called A. contingency planning. B. trend analysis. C. balancing the scorecard. D. strategy formulation. E. forecasting.

A. contingency planning.

An organization is developing a low-cost line of environmentally friendly cleaning products that it intends to distribute internationally. Here, the organization is following a ______ strategy. A. cost leadership B. differentiation C. cost focus D. retrenchment E. focused-differentiation

A. cost leadership

Timex Group USA makes inexpensive but reliable watches sold throughout the United States and is an example of an organization pursuing a _________ strategy. A. cost-leadership B. differentiation C. cost-focus D. focused-differentiation E. retrenchment

A. cost-leadership

A graph of decisions and their possible consequences is known as a(n) A. decision tree. B. Gantt chart. C. results chart. D. outcome matrix. E. fishbone diagram.

A. decision tree.

A company that is an expert at producing and selling narrowly defined products or services, and which does not tend to seek opportunities outside its present market is known by Miles and Snow as a(n) A. defender. B. analyzer. C. adaptor. D. prospector. E. reactor.

A. defender

Organizational ________ is concerned with devising the optimal structures of accountability and responsibility that an organization uses to execute its strategies. A. design B. structure C. life cycle D. charting E. culture

A. design

Amanda was asked by her boss to create a handbook for new hires because several employees had recently complained, saying they felt lost when they first started because procedures didn't seem to be formalized. Amanda herself had not felt that way, perhaps because she has a A. high tolerance for ambiguity. B. value orientation focused on people. C. conceptual decision style. D. high propensity for risk. E. low value orientation.

A. high tolerance for ambiguity.

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

A. historical

With a ______ structure, the organization has a central core of key functions and outsources others to vendors who can do them cheaper or faster. A. hollow B. matrix C. spine D. hybrid E. mechanistic

A. hollow

Milo owns and manages a small bike repair store. In order to determine if strategic planning will be likely to help his business, Milo should primarily assess A. how many competitors he has. B. foot traffic by his location. C. his profitability in the prior six months. D. industry trends. E. how much he intends to grow in the next five years.

A. how many competitors he has.

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

A. internal

Apple's iPad has a very high percentage of the market for tablet computers, and this is also a quickly growing market. Thus, using the BCG matrix, the iPad would be classified as a A. star. B. cloud. C. question mark. D. cash cow. E. dog.

A. star.

If you are happiest being a "hands-on" professional rather than becoming a manager, you may prefer a(n) ______ career. A. steady-state B. portfolio C. spiral D. inclining E. linear

A. steady-state

The process of choosing among different strategies and altering them to best fit the organization is called A. strategy formulation. B. contingency planning. C. strategic control. D. strategy implementation. E. trend analysis.

A. strategy formulation.

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

A. sustainability.

Public relations firm Crowley Communications has a single full-time employee, Jolene Crowley, who is in charge of contracting teams to work on projects as needed. Teams are spread throughout the United States and are made up of specialists linked by computers and telecommunications equipment. This is an example of a(n) ________ organization. A. virtual B. network C. outsourced D. modular E. hollow

A. virtual

Avon, the world's leading direct seller of beauty products, has a(n) ________ statement, which is "to be the company that best understands and satisfies the product, service, and self-fulfillment needs of women globally." A. vision B. intention C. goal D. mission E. rationale

A. vision

Define the four types of organization in the competing values framework, and describe the characteristics of each.

According to the competing values framework, organizational cultures can be classified into four types: (1) clan, (2) adhocracy, (3) market, and (4) hierarchy (see Figure 8.2). A clan culture has an internal focus and values flexibility rather than stability and control. Like a family-type organization, it encourages collaboration among employees, striving to encourage cohesion through consensus and job satisfaction through employee involvement. An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done. A market culture has a strong external focus and values stability and control. Because market cultures are focused on the external environment and driven by competition and a strong desire to deliver results, customers, productivity, and profits take precedence over employee development and satisfaction. A hierarchy culture has an internal focus and values stability and control over flexibility. Companies with this kind of culture are apt to have a formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness, and reliability in the creation and delivery of products.

A mission statement expresses what the organization should become and where it wants to go strategically

FALSE

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

FALSE

__________ means that managers must report and justify work results to managers above them. A. Liability B. Accountability C. Delegation D. Hierarchical control E. Position power

B. Accountability

Which of the following is not one of the mechanisms used to embed culture into an organization? A. Slogans or sayings. B. Accounting practices. C. Leader reactions to crisis. D. Titles or bonuses. E. Organizational structure.

B. Accounting practices.

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

B. An increase in multigenerational households

Which of the following is an example of an observable artifact of organizational culture? A. Mission statements B. Awards ceremonies C. Basic assumptions D. Codes of ethics E. Core beliefs

B. Awards ceremonies

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

B. Behavioral viewpoint

Which of the following is a characteristic of a simple structure? A. Comprehensive set of rules. B. Centralized authority. C. High work specialization. D. Extensive division of labor. E. Tall hierarchy.

B. Centralized authority.

Jordan, a sales manager, met with his staff to discuss that they were only a third of the way to their sales goal, but halfway through the sales period. He was looking for suggestions to improve second-half performance. Which part of the planning/control cycle is Jordan doing? A. Benchmarking against competitors. B. Controlling the direction. C. Making the plan. D. Carrying out the plan. E. Updating the plan.

B. Controlling the direction.

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

B. Economic responsibility

Which of the following is a factor that helps participative management work? A. Top management is occasionally involved. B. Employees trust managers. C. PM is implemented without interference from TQM. D. Employees work in interdependent jobs. E. Employees need more training.

B. Employees trust managers.

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

B. Ethnocentric

The "HP Way" at Hewlett-Packard fostered a culture of integrity, teamwork, and innovation that complemented the high-technology industry of the time. This is an example of which perspective? A. Strength perspective B. Fit perspective C. Match perspective D. Conditional perspective E. Adaptive perspective

B. Fit perspective

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

B. IMF

Which of the following is a step in the rational decision-making model? A. Seek consensus among leadership. B. Identify the problem or opportunity. C. Improve the chosen solution. D. Test solutions on a small scale. E. Implement a holding pattern.

B. Identify the problem or opportunity.

Which of the following is not a typical cause of bad planning? A. Information overload. B. Inadequate planning budgets. C. Ineffective group dynamics. D. Poor assessment of an organization's capabilities. E. Faulty assumptions about the future.

B. Inadequate planning budgets.

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

B. Postconventional

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

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

______ consists of monitoring the execution of strategy and making adjustments, if necessary. A. Mission translation B. Strategic control C. Strategy implementation D. Contingency planning E. SWOT analysis

B. Strategic control

________ goals are set by and for middle managers and focus on the actions needed to achieve ________ goals. A. Strategic; operational B. Tactical; strategic C. Strategic; tactical D. Tactical; operational E. Operational; tactical

B. Tactical; strategic

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

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

When analyzing the "T" in SWOT analysis, a manager might take note of A. the firm's cash flow problems. B. a competitor's new product. C. employee absenteeism. D. strong corporate culture. E. high service levels.

B. a competitor's new product.

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

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

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

B. anxiety

Nicole and other managers in her firm have some ties to Europe and are investigating opportunities for global expansion. They are struggling to understand the risks, given the complexity of world markets today and recent global instabilities. The difficulty Nicole's team is facing prevents perfectly rational decision making, and is an example of A. risk aversion. B. bounded rationality. C. groupthink. D. defensive avoidance. E. anchoring and adjustment.

B. bounded rationality.

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

B. conceptual

Rashid has examined the environment in which his organization operates and has determined that currently the market demands an organic and integrated structure. Rashid did this as part of his A. environmental analysis. B. contingency design. C. life-cycle analysis. D. diversification plan. E. integration plan.

B. contingency design.

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

B. countertrading.

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

B. double; decrease

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

B. dumping.

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

B. feedback

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

B. fitness for use

The benefit of the single-product strategy for a company is A. synergy. B. focus. C. isolated systems. D. differentiation. E. lower costs.

B. focus.

Portia is meeting with her subordinates to determine which workers from her department need training in order to handle production increases expected during the next nine months. Portia is involved in A. vision development. B. operational planning. C. controlling. D. tactical planning. E. developing an MBO.

B. operational planning.

Environmental factors that the organization may exploit for a competitive advantage are known as A. organizational strengths. B. organizational opportunities. C. organizational threats. D. organizational weaknesses. E. competitive strategies.

B. organizational opportunities.

A SMART goal is one that is A. specific, maintainable, affordable, realistic, and timely. B. specific, measurable, attainable, results-oriented, and has target dates. C. specific, maintainable, achievement-oriented, in real time, and timely. D. specific, measurable, affordable, realistic, and has target dates. E. specific, maintainable, aligned with other goals, realistic, and timely.

B. specific, measurable, attainable, results-oriented, and has target dates.

Southwest Airlines employees all know about when CEO Herb Kelleher visited one of the airline's hangars in the middle of the night in a dress with a purple boa—just to liven things up. In fact, this is part of Southwest's history. This is an example of using a ________ to impart organizational culture. A. myth B. story C. ritual D. rite E. value

B. story

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

B. strategic allies.

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

B. strategic allies.

Anders has assembled a task force that is composed of people who don't know each other well. He should expect this group to make better decisions if A. it is a large group. B. the members have common knowledge. C. the group is very confident. D. time pressure is high. E. individuals have unique, specialized knowledge.

B. the members have common knowledge.

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

B. three

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

B. top

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

B. using maquiladoras.

A fine luggage maker was struggling with heavy debt and a sharp decline in customers, and it eventually declared bankruptcy. The company followed which grand strategy? A. Growth B. Stability C. Defensive D. Reduction E. Reactive

C. Defensive

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

C. Executive compensation

Which of the following best represents a currently popular strategy among big companies like Apple, Google, and Amazon? A. Become involved in the community. B. Seek niches where there is less competition. C. Get consumers tightly connected to the company's ecosystem. D. Offer personal or emotional connections to customers. E. Discourage price comparisons.

C. Get consumers tightly connected to the company's ecosystem.

Which of the following is a consequence of decentralized authority? A. Greater uniformity B. Decreased efficiency C. Greater flexibility D. Slower decisions E. Decreased duplication of work

C. Greater flexibility

High Peaks Skate and Snowboard is a small shop that provides equipment for Utah snowboarders in winter months. It has decided to increase advertising during this period in the Salt Lake Tribune and the Park Record in Park City, as well as to sponsor a new on-mountain competition. It is following which strategy? A. Inducement B. Defensive C. Growth D. Stability E. Enhancement

C. Growth

Elizabeth works with the gaming production team at her job, so the leader of that group often assigns her work, but she also has a boss in the marketing department. Which of the following is most likely true? A. There is likely to be a lack of common purpose among her managers. B. Her workplace has too much division of labor. C. Her work arrangement violates the unity of command principle. D. Because of her cross-functional team, her work can be done without coordinated effort. E. Her production team leader has too wide a span of control.

C. Her work arrangement violates the unity of command principle.

Kristi has been struggling with her weight, and one of her coworkers suggested that she make a SMART goal for herself. Which of the following is the best example of a SMART goal for Kristi? A. I want to lose a lot of weight. B. I want to look better in a swimsuit. C. I want to lose 20 pounds over the course of one calendar year. D. I want to start losing weight soon. E. I want to lose 30% of my body mass by next month.

C. I want to lose 20 pounds over the course of one calendar year.

Which of the following would best describe MBO? A. It works at the highest levels of an organization. B. It works at the lowest levels of an organization. C. Its purpose is to motivate employees. D. Its purpose is to control employees. E. It effectively benchmarks HR practices against competitors.

C. Its purpose is to motivate employees.

Which of the following statements is good advice for those transitioning upward in an organization? A. Don't try to manage upward or sideways. B. Invent your own kind of management style. C. Maintain good relationships with other departments. D. Enjoy the solitude of upper management positions. E. Focus on the rights and privileges of your new job.

C. Maintain good relationships with other departments.

At which stage of the organizational life cycles does lack of flexibility and innovation become the danger to the business? A. Adult stage B. Birth stage C. Maturity stage D. Adolescent stage E. Youth stage

C. Maturity stage

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

C. Monochronic

Which of the following characteristics of groups may lead to groupthink? A. Too little information available to the group B. Errors in the information available to the group C. Overconfidence D. Disagreements among the members E. Diversity in the group \

C. Overconfidence

Which of the following is one of the organizational responses organizations make when confronted with uncertainty, as identified by Miles and Snow? A. Aggressor B. Investigator C. Reactor D. Planner E. Leader

C. Reactor

Which of the following responses to a challenge would be considered most like satisficing? A. Panic B. Relaxed avoidance C. Relaxed change D. Decreased involvement E. Defensive avoidance

C. Relaxed change

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

C. Television

Which of the following is NOT a reason why it is hard to bring the best evidence to bear on your decisions? A. Stories are more persuasive than evidence. B. People are trying to mislead you. C. The evidence leads to an unethical solution. D. The evidence doesn't quite apply. E. There's too much evidence.

C. The evidence leads to an unethical solution.

Which of the following is true about women investors? A. They tend to trade more often than men. B. They do less research before investing than men. C. Their portfolios have a higher average gain than men's. D. They are increasingly being drawn to careers in finance. E. They tend to chase "hot tips."

C. Their portfolios have a higher average gain than men's.

Rafaela is interested in learning more about what one of her competitors is doing so that she can anticipate its upcoming moves and react quickly. Which of the following would you suggest to her for this purpose? A. Go through the competitor's trash on its property. B. Pose as an applicant for a job with the competitor. C. Use investor information. D. Call the competitor, explain who you are, and ask directly. E. Pay the competitor's customers for information.

C. Use investor information.

Which of the following is the way culture becomes embedded in an organization? A. Writing a strategic plan. B. Performing competitive analysis. C. Using a teaching process. D. Conducting formal market research. E. Following legal requirements.

C. Using a teaching process.

Which of the following statements about biased decision making is true? A. Hindsight helps you correctly assess what you should have known beforehand. B. When you are making a decision and you have considerable experience in that area, you are then most likely to be overconfident. C. When confronted with a choice, people with strong prior beliefs tend to make their decisions based on their beliefs even if their beliefs are false. D. Sometimes a single event can allow you to determine the trend. E. You could confidently make a decision about something by asking 20 of your friends and deciding based on their preferences.

C. When confronted with a choice, people with strong prior beliefs tend to make their decisions based on their beliefs even if their beliefs are false.

Time Warner runs different divisions specializing in television, music, and publishing. Time Warner is using a(n) ______ strategy. A. stability B. defensive C. diversification D. differentiation E. infiltration

C. diversification

A company producing cameras and video cameras prefers to focus its resources on a fast imitation program to reverse-engineer new features from competitors and add those, rather than implementing truly inventive features. Miles and Snow would call this company a(n) A. reactor. B. prospector. C. analyzer. D. defender. E. imitator.

C. analyzer.

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

C. assertiveness and performance orientation

Savannah is a warm and likeable manager who is extremely supportive of her employees, but she sometimes doesn't say no when she needs to and is somewhat passive in enforcing her decisions. Her decision-making style is most likely A. analytical. B. heuristic. C. behavioral. D. conceptual. E. directive.

C. behavioral.

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

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

In terms of difficulty, the best goals are A. just beyond what is achievable, to maximize motivation. B. easy to attain, so failure will not hurt morale. C. challenging but realistic. D. impossible to really reach, because they are meant only to be idealistic and inspirational. E. easy or hard, since both work equally well.

C. challenging but realistic.

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

C. classical

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

C. contingency

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

C. corporate social responsibility.

An organization that keeps costs and prices low in targeting a narrow market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. stability. E. focused differentiation.

C. cost focus.

Porter's competitive strategies include A. prospector, defender, analyzer, and reactor. B. growth, stability, and retrenchment. C. cost leadership, differentiation, cost focus, and focused differentiation. D. strengths, weaknesses, opportunities, and threats. E. stars, questions marks, cash cows, and dogs.

C. cost leadership, differentiation, cost focus, and focused differentiation.

After film manufacturer Kodak failed to reinvent itself and declared bankruptcy in 2012, it decided to focus on its business of making inkjet printers as part of a ______ strategy. A. growth B. stability C. defensive D. reorganization E. reactor

C. defensive

Erik has been putting off a decision about firing several workers who have been ignoring safety regulations on the factory floor. After all, he thinks, his boss will eventually notice and take action. Erik is experiencing a(n) ______ reaction. A. relaxed change B. relaxed avoidance C. defensive avoidance D. unresponsive E. delayed change

C. defensive avoidance

The process of assigning meaningful authority and responsibility to managers and employees lower in the hierarchy is called A. designation. B. accountability. C. delegation. D. execution. E. allocation.

C. delegation.

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

C. e-mail

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

C. embargo.

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

C. ethical standards.

A recent survey found that the top concern among CEOs worldwide is A. profit growth. B. customer loyalty. C. excellence in execution. D. stimulating innovation. E. finding qualified employees.

C. excellence in execution.

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

C. expatriate.

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

C. first-line manager.

Among the organizational cultures thought to enhance business performance, the ______ perspective assumes that the strength of a corporate culture is related to a firm's long-term financial performance. A. market B. strength C. fit D. objective E. adaptive

C. fit

Spencer talked with Allie after their task force meeting, and they discovered that neither of them had been in favor of dropping some items from next year's budget, yet neither spoke up. Both wanted to be supportive of the group instead. This is an example of A. goal displacement. B. satisficing. C. groupthink. D. heuristics. E. self-selection.

C. groupthink

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

C. integration should occur in organizations when conflicts arise.

A formal chain of command, standardization of rules and procedures, and use of cross-functional teams enhance an organization's A. assimilation. B. differentiation. C. integration. D. decentralization. E. centralization.

C. integration.

Making a choice without the use of conscious thought or logical interference is called A. reactive decision. B. irrational insight. C. intuition. D. instinctual choice. E. heuristics.

C. intuition.

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

C. joint venture.

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

C. management science.

Alexis manages a clothing store in the mall. They were understaffed, and she thought she would have to work all day and help close the store that evening until a young man came in for an application around noon. Alexis told him he could have the job if he could come back at 4 p.m. to begin work. Here, Alexis was engaged in A. relaxed avoidance. B. confirmation bias. C. satisficing. D. heuristics. E. analytics.

C. satisficing.

In a functional structure, people with ______ are grouped together. A. similar levels of authority B. temporary jobs on the same project C. similar occupational specialties D. jobs related to similar products E. jobs in the same geographic region

C. similar occupational specialties

A career that is upwardly mobile, with a number of jobs that are fundamentally different yet still build on one another is known as a(n) ______ career. A. steady-state B. portfolio C. spiral D. inclining E. linear

C. spiral

On an organizational chart, a dotted line typically indicates a(n) A. outside company. B. line position. C. staff position. D. temporary employee. E. nonmanagerial employee.

C. staff position.

At which level of planning must managers be paying attention to the environment outside the organization, be future oriented, and deal with uncertain and competitive conditions? A. tactical B. organizational C. strategic D. front-line E. operational

C. strategic

A ______ represents an "educated guess" about what must be done in the long term for survival or the prosperity of the organization or its principal parts. A. trend analysis B. mission C. strategy D. forecast E. contingency plan

C. strategy

Actively selling strategic plans to middle and supervisory managers, rather than just announcing them, is helpful for A. situation analysis. B. strategy formulation. C. strategy implementation. D. contingency planning. E. strategic control.

C. strategy implementation.

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

C. take care of the customer.

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

C. the board of directors.

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

C. the effectiveness of the services delivered.

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

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

Define competitive intelligence and explain how you might go about obtaining it legally

Competitive intelligence means gaining information about one's competitors' activities so that one can anticipate their moves and react appropriately. Gaining competitive intelligence isn't always easy, but there are several avenues and most of them are public sources including (1) the public prints and advertising, (2) investor information like corporate annual reports, and (3) informal sources such as trade show gossip and information from company salespeople.

Describe what determines competitiveness within a particular industry using Porter's model for industry analysis. Provide an example for at least three of the five forces in the model

Competitiveness within a particular industry originates in the five primary competitive forces in the firm's environment: 1. Threats of new entrants: for Kraft, new entrants might be store brands or Annie's. 2. Bargaining power of suppliers: companies without multiple suppliers are at the mercy of the one. 3. Bargaining power of buyers: customers who use the Internet to shop around are more able to negotiate a better price. 4. Threats of substitute products or services: for big oil companies, firms making ethanol provide a substitute product. 5. Rivalry among competitors: for Coca-Cola, Pepsi is an established rival.

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

E. countertrading.

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

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

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

D. A grocery store

If a business lacks insight or fails to use the adaptive cycle properly, it is likely to be which of the following? A. A prospector B. An analyzer C. A defender D. A reactor E. An imitator

D. A reactor

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

D. Active engagement.

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

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

A company with a formalized, structured work environment aimed at achieving efficiency, timeliness, and reliability in the creation and delivery of products has a clan culture

FALSE

Which of the following is not one of Bryan Barry's recommendations to keep a strategic plan on track? A. Keep moving. B. Engage people. C. Keep it simple. D. Avoid compromise. E. Stay focused.

D. Avoid compromise.

Which of the following is a decision-making style based on the dimensions of value orientation and tolerance for ambiguity? A. professional B. personal C. technological D. Behavioral E. Mechanical

D. Behavioral

The competing values framework classifies organizational cultures into which of the following? A. Stable, flexible, and laddered cultures. B. Observable, flexible, competitive, and driven cultures. C. Symbolic, heroic, and basic cultures. D. Clan, adhocracy, market, and hierarchy cultures. E. Observable, espoused, and core cultures.

D. Clan, adhocracy, market, and hierarchy cultures.

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

D. Controlling

Improving future plans is part of which step in the planning/control cycle? A. Making the plan. B. Carrying out the plan. C. Benchmarking against competitors. D. Controlling the direction. E. Updating the plan.

D. Controlling the direction.

An Iowa ethanol production company has been suffering from a combination of lower demand for gasoline (into which its product is mixed) and higher corn prices (which is the largest input cost). It has responded by selling off land, buildings, and some of its reserve product inventory. This is a variation of which of these grand strategies? A. Right-size B. Growth C. Stability D. Defensive E. Reorganization

D. Defensive

Recently ConocoPhillips, America's third-biggest oil company, spun off its refineries, pipelines, and chemicals division to form a new company called Phillips 66. Now ConocoPhillips will concentrate on its upstream operations. This is a variation of which of these grand strategies? A. Right-size B. Growth C. Stability D. Defensive E. Reorganization

D. Defensive

Which of the following is associated with operational planning? A. Determining the overall direction of the organization. B. Examining the environment outside of the organization. C. Implementing policies and plans of top management. D. Directing daily tasks of nonmanagerial personnel. E. Making decisions under highly uncertain conditions.

D. Directing daily tasks of nonmanagerial personnel.

A continuity strategy is the common grand strategy that involves little or no significant change

FALSE

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

D. Ethical dilemma

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

D. Evidence-based

Which of the following is one of the challenges of planning? A. Assigning the right people to tasks. B. Determining the correct budget. C. Measuring results with accuracy. D. Finding the time to plan. E. Motivating employees.

D. Finding the time to plan

Which of the following should be included in a good vision statement? A. Firm's attitude toward its employees. B. Geographical areas in which the firm will compete. C. Firm's basic technology. D. Firm's standards of excellence and high ideals. E. Firm's major products or services.

D. Firm's standards of excellence and high ideals.

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

D. Hierarchy of human needs

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

D. Human relations movement

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

D. Incremental

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

D. It can change direction quicker.

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

D. Justice

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

D. Lenders

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

D. Local communities

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

D. Loss of well-paying jobs

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

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

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

D. discounts the importance of human needs.

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

D. Maslow

Which of the following is the correct order of planning steps within an organization? A. Strategic planning, mission statement & vision statement, operational planning, tactical planning B. Strategic planning, mission statement & vision statement, tactical planning, operational planning C. Strategic planning, operational planning, mission statement & vision statement, tactical planning D. Mission statement & vision statement, strategic planning, tactical planning, operational planning E. Mission statement & vision statement, strategic planning, operational planning, tactical planning

D. Mission statement & vision statement, strategic planning, tactical planning, operational planning

Which of the following is NOT one of the suggestions for decision making recommended by management consultant Odette Pollar? A. Decide in a timely fashion. B. Don't agonize over minor decisions. C. Separate outcome from process. D. Never stop gathering facts. E. When overwhelmed, narrow your choices.

D. Never stop gathering facts.

Which of the following is one of the nonrational models of decision making? A. Boundary B. Classical C. Goal displacement D. Satisficing E. Attitudinal

D. Satisficing

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

D. Senge.

Apple has a plan to generate buzz for its new products by maintaining secrecy about them. Apple has learned that strong measures are required to protect such mysteries, so it has enhanced its security and even fired and sued employees for leaking news about the products. These efforts would be considered which part of the planning/control cycle? A. Making the plan. B. Carrying out the plan. C. Comparing results. D. Taking corrective action. E. Benchmarking competitors.

D. Taking corrective action.

Which of the following strategy tools suggests that an organization will do better in fast-growing markets in which it has a high market share rather than in slow-growing markets in which it has a low market share? A. SWOT analysis B. Porter's model for industry analysis C. Porter's competitive strategies D. The BCG matrix E. Trend analysis

D. The BCG matrix

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

D. The largest stockholder of the company.

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

D. Theory Y.

A cost-benefit matrix is a graph of decisions and their possible consequences and is used to create a plan to reach a goal

FALSE

Redbox uses the large amount of data that it collects at its video and game rental kiosks to determine ways to improve customer retention and to encourage multiple rentals at the same time. The chain is using A. quantitative decision making. B. data correlation. C. heuristics. D. business analytics. E. the Delphi technique.

D. business analytics.

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

D. cash cow.

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

D. cheating.

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

D. conceptual

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

D. corporate governance.

Management at the De la Garza Recreational Products has recognized that the firm is much slower than the competition at getting new designs to market. The problem seems to stem from coordination problems between the various functional departments involved in the recreational vehicle design process. De la Garza should A. improve technical training for employees. B. formalize the division of labor. C. relax its rules and procedures. D. create cross-functional teams for development. E. cancel all social events for employees.

D. create cross-functional teams for development.

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

D. learning

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

D. long-term

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

D. management

Kia Motors takes a very aggressive stance to fire executives who don't meet sales goals, which makes the company an example of a(n) ______ culture. A. clan B. target-driven C. adhocracy D. market E. hierarchy

D. market

Arnos Engineering has a functional structure throughout the company but also has a second chain of command based on the part of the United States where one works. This organization has a ______ structure. A. bifunctional B. hybrid C. network D. matrix E. team-based

D. matrix

Hilton Hotel's statement expressing its purpose as "to fill the earth with the light and warmth of hospitality" is a(n) A. vision statement. B. intention statement. C. goal statement. D. mission statement. E. rationale statement.

D. mission statement.

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

D. monitor

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

D. multinational organization.

When White Castle specifies exactly how to dress a hamburger, including the order of the condiments, this is called a A. program. B. policy. C. rule. D. procedure. E. project.

D. procedure.

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

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

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

D. operations management.

Information-technology companies such as Motorola favor a(n) ______ structure because they constantly have to adjust to technological change. A. mechanistic B. bureaucratic C. formalized D. organic E. tall

D. organic

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

D. output

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

D. philanthropy.

Bossidy and Charan believe that to excel at execution, a leader should A. be hands-off once the strategy is set. B. micromanage the tactics. C. empower employees to take over the execution. D. probe for weaknesses in the substance and details. E. let the plan run its course before attempting to revise it.

D. probe for weaknesses in the substance and details.

Dayton Construction has a ________ for processing invoices, which includes coding them by job number and construction phase, and matching them with the correct purchase order. A. program. B. policy. C. rule. D. procedure. E. project.

D. procedure.

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

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

It has been discovered that an overseas manufacturing facility your company uses has been employing child labor despite your position against it. You are contemplating relocating your manufacturing to another country where costs are somewhat higher but workplace standards are more tightly controlled. In using Bagley's ethical decision tree, you determine it would be unethical NOT to relocate, so you should A. relocate the facility, but don't tell shareholders about potentially smaller profits. B. warn the manufacturer that you will relocate should a violation occur again. C. continue to use the facility, despite your objections, because this will maximize shareholder value. D. relocate the facility, and tell the shareholders how this will affect their returns. E. continue to use the facility, because it is benefitting your company, and all workers, even underage ones.

D. relocate the facility, and tell the shareholders how this will affect their returns.

Angelina is interviewing for an open position since she recently let go an employee for excessive absenteeism. Though she thinks that Ivy is the best candidate for the job, she has small children, which seemed to be the source of the last employee's absenteeism. Angelina is reluctant to hire Ivy, which is a(n) ______ bias. A. anchoring and adjustment B. confirmation C. availability D. representativeness E. escalation of commitment

D. representativeness

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

D. revenue tariff.

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

D. rites and rituals.

Planning is defined as A. formulating a method to allocate resources effectively. B. motivating employees. C. coping with obstacles to past performance. D. setting goals and deciding how to achieve them. E. implementing strategic goals.

D. setting goals and deciding how to achieve them

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

D. spokesperson

A development strategy is the common grand strategy that involves expansion

FALSE

Miles and Snow suggest that organizations responding to uncertainty in the environment do so with one of four approaches. Name and describe these approaches, and provide an example of each.

Defenders are expert at producing and selling narrowly defined products or services. Often they are old-line successful enterprises, such as Macy's and JCPenney, which in the 2010 era of consumer frugality found themselves losing customers to discounters like Walmart. They do not tend to seek opportunities outside their present markets. They devote most of their attention to making refinements in their existing operations, such as slashing prices. A company described as "aggressive" is often a Prospector organization. Prospectors focus on developing new products or services and in seeking out new markets, rather than waiting for things to happen. An example of a Prospector company is Gap, which announced it would look for new sales by expanding abroad. Another such company is Apple. Analyzers take a "me too" response to the world. Analyzers let other organizations take the risks of product development and marketing and then imitate (or perhaps slightly improve on) what seems to work best. For years, Microsoft has been accused of taking this approach. Reactors make adjustments only when finally forced to by environmental pressures. In the worst cases, they are so incapable of responding fast enough that they suffer massive sales losses and are even driven out of business. Kmart, for instance, failed to respond to Walmart's development of its distribution and inventory management competencies, resulting in stalled growth and a significant reduction in market share. Kmart's core business never recovered from this reactive strategy.

What cultural perspective assumes that the most effective cultures help organizations anticipate and adapt to environmental changes? A. Strength perspective B. Fit perspective C. Adjustment perspective D. Conditional perspective E. Adaptive perspective

E. Adaptive perspective

Hard-working people at insurance giant AIG joked that "thank heavens it's Friday because that means there are only two more working days until Monday." This is characteristic of which layer of organizational culture? A. Enacted norms B. Invisible artifacts C. Symbolic culture D. Heroic mores E. Basic assumptions

E. Basic assumptions

A person who is oriented toward people and social concerns and has a low tolerance for ambiguity is ______ in her decision-making style. A. analytical B. relaxed C. Conceptual D. directive E. Behavioral

E. Behavioral

Anne runs a small bakery on the main street of a resort town. Though hers was the only bakery around, the business had been suffering during the economic slowdown, and she was contemplating whether she should attempt strategic planning. Anne should be aware of what research finding regarding strategic planning? A. Only large firms show performance gains from strategic planning. B. Only small firms show performance gains from strategic planning. C. Performance gains from strategic planning are equal among small and large firms. D. Both small and large firms benefit from strategic planning, but small firms get a larger boost in performance. E. Both small and large firms benefit from strategic planning, but the small improvement in performance may not be worth the effort for small firms.

E. Both small and large firms benefit from strategic planning, but the small improvement in performance may not be worth the effort for small firms.

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

E. Classical viewpoint

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

E. Commonwealth

Which of the following statements about strategy and strategic positioning is false? A. Many customers with broad needs can be a source of strategic position. B. A company has to choose not only what strategy to follow but what strategy not to follow. C. Few customers with broad needs can be a source of strategic position. D. Strategy involves creating a "fit" among activities. E. Few customers with narrow needs can be a source of strategic position.

E. Few customers with narrow needs can be a source of strategic position.

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

E. Human

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

E. Human

Megan met with her supervisor for a formal review of her job performance over the past year. Though Megan had agreed to complete five training modules during the course of the year, she only did two. At this stage, which part of the planning/control cycle would be applicable to her manager going forward? A. Carry out the plan. B. Improve feedback. C. Correct deviations in the plan. D. Benchmark against other employees. E. Improve future plans.

E. Improve future plans.

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

E. Interpersonal

Which of the following is NOT a hindrance to perfectly rational decision making? A. Conflicting goals B. Imperfect information C. Information overload D. Limited cognitive capacity E. Lack of intuition

E. Lack of intuition

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

E. Leading

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

E. Learn rituals of respect.

Which of the following statements about group decision making is true? A. Individuals are always better than groups in decision making. B. Groups are always better than individuals in decision making. C. Groups minimize satisficing. D. Groups are faster at making decisions. E. Managers should utilize groups for decision making on a selective basis.

E. Managers should utilize groups for decision making on a selective basis.

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

E. Moral rights

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

E. Personally certify financial reports.

Which of the following is a benefit of planning? A. Planning allows you to spend little time preparing for the future. B. Planning allows you to make all decisions without consulting superiors. C. Planning helps you compare your results to your competitors'. D. Planning helps the company to be spontaneous. E. Planning helps you cope with uncertainty.

E. Planning helps you cope with uncertainty

_______ group activities around similar products or services. A. Output structures B. Matrix organizations C. Offering divisions D. Functional structures E. Product divisions

E. Product divisions

Which of the following is not a behavior of a leader who executes? A. Reward the doers. B. Insist on realism. C. Follow through. D. Know yourself. E. Respect others' limitations.

E. Respect others' limitations.

Which of the following is a disadvantage of group decision making? A. Lower commitment to the decision B. Lower levels of confidence in judgments C. Different perspectives D. Greater discomfort with the final decision E. Satisficing

E. Satisficing

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

E. Scientific management

Which of the following questions about a proposed action is NOT a key question in Bagley's ethical decision tree? A. Is it legal? B. Does it maximize shareholder value? C. Is it ethical? D. Would it be ethical not to do it? E. Should the effect of it be disclosed to shareholders?

E. Should the effect of it be disclosed to shareholders?

__________ means performing different activities from rivals or performing similar ones in different ways. A. Competitive planning B. Distinctive positioning C. Collaborative planning D. Strategic segmentation E. Strategic positioning

E. Strategic positioning

In which type of culture do employees adhere to the organization's values because they believe in its purpose? A. Fit B. Strategic C. Conditional D. Adaptive E. Strong

E. Strong

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

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

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

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

Which of the following is a question that should be answered by a company's mission statement? A. Will it inspire enthusiasm and encourage commitment? B. Does it set standards of excellence? C. Is it appropriate for the organization? D. Is it well articulated? E. Who is our customer?

E. Who is our customer?

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

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

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

E. a transformation process

As an organization goes through the stages of the life cycle, it becomes more A. informal. B. centralized. C. unstable. D. organic. E. bureaucratic.

E. bureaucratic.

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

E. contemporary

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

E. controlling.

A directive individual takes longer to make a decision than an analytical one

FALSE

Fonseca Construction Supply has product divisions for lumber, hardware, electrical supplies, and plumbing supplies. Each has its own production facility and sales staff. Fonseca is A. tightly integrated. B. bureaucratic. C. functionally organized. D. a matrix organization. E. highly differentiated.

E. highly differentiated.

The first step in the MBO process is to A. determine rewards for meeting goals. B. give a performance appraisal. C. develop an action plan. D. periodically review performance. E. jointly set objectives.

E. jointly set objectives.

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

E. learning

Effective strategic management involves A. only top management. B. only top and middle management. C. only middle and lower management levels. D. only lower management level. E. managers from all parts of the organization.

E. managers from all parts of the organization.

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

E. megamergers.

McKesson Corp., a U.S. pharmaceutical distributor, has a(n) ________ statement, which is "to provide comprehensive pharmacy solutions that improve productivity, profitability and result in superior patient care and satisfaction." A. purpose B. vision C. intention D. goal E. mission

E. mission

The statement which expresses the purpose of an organization is called a(n) A. goal statement. B. rationale statement. C. vision statement. D. intention statement. E. mission statement.

E. mission statement.

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

E. motion

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

E. multinational corporation.

Analysis of changing demographics of the U.S. population would be part of the assessment of a company's A. strengths. B. weaknesses. C. opportunities. D. threats. E. opportunities or threats depending on the outcome of the analysis.

E. opportunities or threats depending on the outcome of the analysis.

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

E. parochialism.

Explain evidence-based decision making. Name at least four of the seven implementation principles identified by Pfeffer and Sutton to help companies that are committed to evidence-based management

Evidence-based decision making means managers make decisions based on what actually works. They face the hard facts and use the best evidence to help navigate the competitive environment. Pfeffer and Sutton identify seven implementation principles to help companies that are committed to using evidence-based management: 1. Treat your organization as an unfinished prototype. 2. No brag, just facts. 3. See yourself and your organization as outsiders do. 4. Evidence-based management is not just for senior executives. 5. Like everything else, you still need to sell it. 6. If all else fails, slow the spread of bad practice. 7. The best diagnostic question: what happens when people fail?

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

FALSE

A company must be able to execute three core processes of business including people, products, and administration

FALSE

Discuss the three things that must happen for MBO to be successful.

For MBO to be successful, three things have to happen: 1. Top management must be committed. "When top-management commitment [to MBO] was high," said one review, "the average gain in productivity was 56%. When commitment was low, the average gain in productivity was only 6%." 2. It must be applied organizationwide. The program has to be put in place throughout the entire organization. That is, it cannot be applied in just some divisions and departments; it has to be done in all of them. 3. Objectives must "cascade." MBO works by cascading objectives down through the organization; that is, objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization. Top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. The hierarchy ends in individual objectives set by each employee.

Explain the positive and negative aspects of pursuing a single-product strategy versus a diversification one. Provide an example of a company that uses each type of strategy

In a single-product strategy, a company makes and sells only one product within its market. Making just one product allows you to focus your manufacturing and marketing efforts just on that product. This means that your company can become savvy about repairing defects, upgrading production lines, scouting the competition, and doing highly focused advertising and sales. The risk, of course, is that if you do not focus on all aspects of the business, if a rival gets the jump on you, or if an act of God intervenes (for a florist, roses suffer a blight right before Mother's Day), your entire business may go under. The single-product strategy is seen all the time as you drive past the small retail businesses in a small town: There may be one shop that sells only flowers, one that sells only security systems, and so on. Diversification is operating several businesses in order to spread the risk. Diversification may be related or unrelated. Related diversification has three advantages: reduced risk—because if one product is weak, others may take up the slack, management efficiencies—because administration is spread over several businesses, and synergy, that the sum is greater than the parts. You see the diversification strategy at the small retailer level when you drive past a store that sells gas and food and souvenirs and rents DVD movies

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

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

Explain the concepts of mechanistic and organic organizations. What kind of organization should be in place when an organization's environment is changing quickly and unpredictably?

Mechanistic organizations are characterized by: centralized authority, many rules and procedures, specialized tasks, formalized communication, few teams or task forces, narrow spans of control, and taller structures. Organic organizations are characterized by: decentralization of authority, few rules and procedures, shared tasks, informal communication, many teams and task forces, wider span of control, and flatter structures. For a changing environment, organizations are best served by an organic structure, which is more flexible and can react more quickly as needed

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

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

List the four benefits of planning.

Planning provides a means to check on progress toward goals. Planning helps to coordinate activities between people and/or departments. Planning helps in thinking ahead and anticipating problems or opportunities. Planning helps one cope with uncertainty.

In general, planning has many benefits. However, planning also has two cautions of which one must be aware. Discuss these.

Planning requires time, including that to involve others (subordinates, peers, staff, competitors, markets, etc.). Also, some decisions have to be made without a lot of time. While you shouldn't shoot from the hip in making decisions, often you may have to "go with what you've got" and make a decision based on a plan that is perhaps only three-quarters complete. Sometimes the need to make a decision quickly outweighs the benefit of having more complete information.

Describe Porter's four competitive strategies and explain how they differ from each other. Provide an example of a firm that might use each

Porter identified two "wide" strategies (cost-leadership and differentiation) that deal with broad markets, and two "narrow" strategies (cost-focus and focused-differentiation) that target specific markets. 1. Cost-leadership focuses on keeping costs and prices low for a wide market, and examples are Dell, Timex, Home Depot, and Bic. 2. Differentiation stresses offering unique and superior products and services to a wide market and examples include Ritz-Carlton, Lexus, and PepsiCo. 3. Cost-focus emphasizes keeping low costs and prices, but to a narrow market and examples include low-cost products sold at discount store and discount regional gas station chains. 4. Focused-differentiation stresses unique and superior products to a narrow market and examples include Rolls Royce, Cartier, Turnbull & Asser, and niche books.

What are the fundamental differences in examining internal and external environments when conducting a situation analysis?

SWOT analysis, also called a situation analysis, looks at internal strengths and weaknesses and external opportunities and threats. The internal environment looks at organizational strengths—the skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission, and organizational weaknesses—the drawbacks that hinder an organization in executing strategies in pursuit of its mission—are also part of the internal environment. The external environment includes organizational opportunities—environmental factors that the organization may exploit for competitive advantage. It also includes organizational threats—environmental factors that hinder an organization's achieving a competitive advantage.

Give examples of what managers might look at in performing each element of a SWOT analysis. SWOT analysis—also known as a situational analysis—is a search for the strengths, weaknesses, opportunities, and threats affecting the organization. Examples of a firm's strengths and weaknesses: work processes, organization, culture, staff, product quality, production capacity, image, financial resources and requirements, service levels, other internal matters.

SWOT analysis—also known as a situational analysis—is a search for the strengths, weaknesses, opportunities, and threats affecting the organization. Examples of a firm's strengths and weaknesses: work processes, organization, culture, staff, product quality, production capacity, image, financial resources and requirements, service levels, other internal matters. Examples of a firm's opportunities and threats: market segment analysis, industry and competition analysis, impact of technology on organization, product analysis, governmental impacts, other external matters (see Figure 6.2).

Explain the different types of planning for the different levels of management. Include the typical time frame for which each plan is created.

Strategic planning is done by top management. Using their mission and vision statements, top managers do strategic planning—they determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available. It should communicate not only general goals about growth and profits but also ways to achieve them. Tactical planning is done by middle management. The strategic priorities and policies are then passed down to middle managers, who must do tactical planning—that is, they determine what contributions their departments or similar work units can make with their given resources during the next 6-24 months. Operational planning is done by first-line management. Middle managers then pass these plans along to first-line managers to do operational planning—that is, they determine how to accomplish specific tasks with available resources within the next 1-52 weeks.

Define strategic positioning. Explain the three principles that underlie strategic positioning

Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. It means, according to Porter, "performing different activities from rivals, or performing similar activities in different ways." Three key principles underlie strategic positioning: Strategy is the creation of a unique and valuable position, which emerges from three sources: few needs, many customers; broad needs, few customers; or broad needs, many customers. Strategy requires trade-offs in competing. A company has to choose not only what strategy to follow but what strategy not to follow. Strategy involves creating a "fit" among activities. "Fit" has to do with the ways a company's activities interact and reinforce one another.

Explain the three perspectives of organizational culture that may enhance economic performance. Which perspective was found to provide the highest level of long-term financial performance?

Strength, fit, and adaptive culture may enhance economic performance. The strength perspective assumes that the strength of a corporate culture is related to a firm's long-term financial performance. The fit perspective assumes that an organization's culture must align, or fit, with its business or strategic context. A correct fit is expected to foster higher financial performance. The adaptive perspective assumes that the most effective cultures help organizations anticipate and adapt to environmental changes. An investigation of 207 companies from 22 industries during the years 1977-1988 partly supported the strength and fit perspectives. However, findings were completely consistent with the adaptive perspective. Long-term financial performance was highest for organizations with an adaptive culture.

A good organizational culture can facilitate a low turnover rate

TRUE

A grand strategy can be established using tools like SWOT analysis and forecasting

TRUE

A hero is a person whose accomplishments embody the values of the organization.

TRUE

A hollow structure is often called a network structure

TRUE

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

TRUE

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

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

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

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

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

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

Describe the boundaryless organization and three organizational structures that are common forms of it.

The opposite of a bureaucracy, with its numerous barriers and divisions, a boundaryless organization is a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks. The collaborators may include not only coworkers but also suppliers, customers, and even competitors. This means that the form of the business is ever-changing, and business relationships are informal. Three types of structures in this class of organizational design are hollow, modular, and virtual structures. In the hollow structure, often called the network structure, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster. The modular structure differs from the hollow structure in that it is oriented around outsourcing certain pieces of a product rather than outsourcing certain processes (such as human resources or warehousing) of an organization. In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors. One consequence of the Internet is the virtual organization, an organization whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections, while often appearing to customers and others to be a single, unified organization with a real physical location

Explain what a matrix structure is, and draw an organization chart that depicts a matrix (including appropriate job titles). Explain what you think it would be like to be a manager in a matrix organization

The student should explain the matrix structure, draw a chart similar to the one shown in the text, and give his or her opinion of working in a matrix. In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures, vertical and horizontal. The functional structure usually doesn't change It is the organization's normal departments or divisions, such as finance, marketing, production, and R&D. The divisional structure may vary, as by product, brand, customer, or geographic region. One of the difficulties of the matrix is reporting to two managers who may have different priorities, or as a manager, to compete with another manager for an employee's services. This is a violation of the unity of command principle. For an example of a drawing of a matrix organization, see Figure 8.9 (students may vary labels, but should still show a similar matrix reporting structure).

Define organizational culture, and explain three layers in which it appears. Choose an organization with which you have some experience (for example, an employer, one of your schools, your church, a club) and use it to illustrate the layers of culture

The student should first define organizational culture and then provide examples for the visible and invisible levels of culture of the organization he or she chooses. Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members. Organizational culture appears as three layers: (1) observable artifacts, (2) espoused values, and (3) basic assumptions. Each level varies in terms of outward visibility and resistance to change, and each level influences another level. At the most visible level, organizational culture is expressed in observable artifacts—physical manifestations such as manner of dress, awards, myths, and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and employees. Espoused values are the explicitly stated values and norms preferred by an organization, as may be put forth by the firm's founder or top managers. Basic assumptions, which are not observable, represent the core values of an organization's culture—those that are taken for granted and, as a result, are difficult to change.

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

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

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

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

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

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

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

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

Name the three common grand strategies and provide an example of how a company might use each.

There are the three common grand strategies: 1. A growth strategy is a grand strategy that involves expansion—as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served. Examples: It can improve an existing product or service to attract more buyers. It can increase its promotion and marketing efforts to try to expand its market share. It can expand into new products or services. It can acquire similar or complementary businesses. 2. A stability strategy is a grand strategy that involves little or no significant change. Examples: It can go for a no-change strategy (if, for example, it has found that too-fast growth leads to foul-ups with orders and customer complaints). It can go for a little-change strategy (if, for example, the company has been growing at breakneck speed and feels it needs a period of consolidation). 3. A defensive strategy, or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts. Examples: It can reduce costs, as by freezing hiring or tightening expenses. It can sell off (liquidate) assets—land, buildings, inventories, and the like. It can gradually phase out product lines or services. It can declare bankruptcy.

Why is it important for a manager to understand organizational culture? What functions does organizational culture serve?

t is important for a manager to understand organizational culture for two reasons: culture can powerfully shape an organization's long-term success, and culture can serve as a control mechanism, substituting for organizational structure. An organization's culture has four functions: It gives members organizational identity. It facilitates collective commitment. It promotes social-system stability. It shapes behavior by helping employees make sense of their surroundings.