Principles of Management Final Exam
You advertise heavily for a manager for your new, high-tech computer-chip factory in the Midwest, but you simply cannot find a trained person. You are encountering a modern version of what historical problem
????
What is a multinational corporation (MNC)?
A corporation, such as IBM, ExxonMobil, and Nestlé, that operates on a worldwide scale, without significant ties to any one nation or region
Which of the following characteristics relates to a compressed work week?
A four-day (or shorter) period in which an employee works 40 hours
What is the World Trade Organization (WTO)?
A global association of member countries that promotes free trade
Which of the following characteristics relates to an organizational chart?
A graphic display of the official lines of authority and communication within the organization
What is an organization?
A group of individuals who work together to achieve the goals or objectives that are important to these individuals
What is meant by an authentic leader?
A leader who is passionate about company objectives, models corporate values in the workplace, and forms strong relationships with stakeholders
Which of the following characteristics relates to situational leadership theory?
A leadership model whose premise is that a leader's style should be contingent on subordinates' competence and commitment
What is path-goal theory?
A model concerned with how a leader affects employees' perceptions of their personal and work goals and the paths to goal attainment
Which of the following characteristics best relates to management?
A set of activities designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing enviroment
Which of the following characteristics relates to global business (globalization)?
A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business
What is a network organization?
A structure, primarily a command unit, that does not make a good or provide a service but instead coordinates agreements and contracts with other organizations to produce, distribute, and sell products
What is meant by brainstorming?
A technique in which group members spontaneously suggest ideas to solve a problem
What is flextime?
A work schedule that allows employees to choose their starting and ending times as long as they are at work during a specified time period
The psychologist who developed the idea that human needs are arranged in a hierarchy of the importance is
Abraham Maslow
Effective use of an organization's resources means
Achieving the intended result
The basic test of capitalism were set forth in a well-known book, The Wealth of Nations, written by
Adam Smith
You believe that America's health care system will fix itself if the government simply leaves it alone. Your belief would probably be supported by which of the following persons?
Adam Smith
Both Henri Fayol and Max Weber were major contributors to the classical approach to management known as
Administrative management
What term describes the universality of management as a function that can be applied to all organizations
Administrative management
Which of the following refers to power that is derived by virtue of a person's association with someone else who has some source of power?
Affiliative power
Which of the following characteristics relates to the nature of the management environment?
All of those factors that affect the operation of the organization
What is the system approach to management theory?
An approach to management theory that views organizations and the environments within which they operate as sets of interrelated parts to be managed as a whole in order to achieve a common goal
What is meant by a turbulent environment?
An environment wherein customer or other stakeholder demands are continuously changing or the primary technology of the firm is constantly being improved and updated
When Henry Mintzberg referred to the manager as the "nerve center" and the "focal point" in his or her organization, he was talking about the manager in
An informational role
Which of the following characteristics relates to motivation?
An inner drive that directs behavior toward goals
In an organizational chart, the higher the level of the box in the chart, the higher the level of
Authority
Which of the following refers to the right to give work orders to others in the organization and is associated with a position within an organization, not with the individual occupying that position?
Authority
What term describes the design of jobs based on the view that workers are independent parts of the production process whose individual characteristics should be taken into account in forming jobs?
Behavioral approach to job design
In analyzing their external environment, most organizations find that it presents
Both threats and oppertunities
What term describes the pattern of concentrating authority in a relatively few, high-level positions?
Centralization
What term describes an approach to management that stresses the manager's role in a formal hierarchy of authority and focuses on the task, machines, and systems needed to accomplish the task efficiently?
Classical Approach
Which of the following refers to the design of jobs based on the principles of division of labor and specialization?
Classical approach to job design
Subordinate resistance to the use of power is most likely when which of the following sources of power is used?
Coercive
Which of the following refers to an organizationally based source of power derived from a leader's control over punishments or the capacity to deny rewards?
Coercive power
What are potential new competitors?
Companies not currently operating in a business's industry but that have a high potential for entering the industry
What are learning organizations?
Companies that facilitate the learning of their members and continuously transform themselves
What name is given to other organizations that produce similar, or in some cases identical goods or services?
Competitors
Within a ____________orientation type of control system, when employees understand that their behaviors will be met with consequences, either good or bad, they have ample opportunity for ambiguous personal interpretation of how they should act within the company
Compliance
When a manager reasons well, processes information intelligently, and evaluates which strategic option is potentially most profitable, he or she is displaying
Conceptual Skills
When your company, Powerful Personal Computers, lays out five million dollars to hire away a woman from a soft-drink firm as your new CEO, it is a good bet that you are paying these big bucks for her
Conceptual Skills
Which of the following refers to the intellectual abilities to process information and make accurate decisions about the work group and the job tasks
Conceptual Skills
What term describes a person's faith that his or her decisions are reliable and good?
Confidence
Motivational theories that assume that workers are motivated by the desire to satisfy needs, and then seek to identify what those needs are, are called
Content theories
What term describes a group of theories that assume that workers are motivated by the desire to satisfy needs and that seek to identify what their needs are?
Content theories
The work of W. Edwards Deming is most appropriately classified in which theory of management?
Contingency
What term describes the suggestion that successful leadership requires matching leaders with primarily stable leadership styles to the demands of the situation?
Contingency theory
When Reebok has some of its athletic shoes produced by a Korean company, but the Reebok name still appears on the shoes, this illustrates
Contract manufacturing
China's arrangement with the Congo to barter infrastructure in exchange for metals is an example of a
Countertrade agreement
The beliefs, traditions, philosophies, rules, and heroes shared by the members of the organization referred to as the organization's
Culture
What name is given to when authority is dispersed to several positions at various levels in the organization?
Decentralization
What term describes the process of choosing among alternative courses of action to resolve a problem?
Decision making
What is determined from patterns among an individual's predispositions, such as which situations to avoid, what kind of jobs an individual enjoys, which things he or she dislikes, how an individual communicates, how an individual approaches problems, and how he or she makes decisions?
Decision styles
Which of the following refers to the assignment of work activities and authority to a subordinate?
Delegation
The fact that Americans are becoming older and more affluent is an example of
Demographic characteristics
What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price?
Differentiation
When a firm offers a unique good or service to a customer at a premium price, it is following the business-level strategy of
Differentiation
What term describes the purchase of overseas production and marketing facilities, in which a company may control the facilities outright, or it may be the majority stockholder in the company that controls the facilities?
Direct Investment
You own and operate your own hamburger stand. One of your employees makes the hamburger patties, a second grills them, a third slaps them in buns, and a fourth sells them to customers. You are utilizing what management concept or theory?
Division of labor, or specializazation
Which of the following is NOT a component of the hedgehog concept?
Does your organization have the core competencies
By requiring products to be sold for not less than what it costs to produce them, the United States is attempting to prohibit
Dumping
Which of the following refers to using resources in a way that produces a desired result?
Effectively
Which of the following characteristics relates to the North American Free Trade Agreement (NAFTA)?
Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactured products among the three countries
What term describes accomplishing the objectives with a minimum of resources?
Efficiently
The person primarily associated with the Hawthorne studies was
Elton Mayo
What name is given to the capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically?
Emotional intelligence
What name is given to the most effective managers, who engage in both dimensions of leadership behaviors by getting employees involved in the operation of their departments or divisions in a positive and constructive manner, setting general goals, providing fairly loose supervision, and recognizing employees' contributions?
Employee-centered leaders
The task environment includes all of the following except
Enviromentalists
What term describes a theory stating that the extent to which people are willing to contribute to an organization depends on their assessment of the fairness of the rewards they will receive in exchange?
Equity theory
Which of the following characteristics relates to the World Bank?
Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries
Which of the following refers to a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective?
Ethics Audit
Which of the following refers to a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective?
Ethics audit
Which of the following refers to an economic and political union of 28 member nations that are located primarily in Europe?
European Union (EU)
What term describes restrictions on the amount of a particular currency that may be bought or sold?
Exchange controls
The ratio at which one nation's currency can be exchanged for another nation's currency or gold is the
Exchange rate
What name is given to the ratio at which one nation's currency can be exchanged for another nation's currency or for gold?
Exchange rate
What name is given to the theory that states that motivation depends not only on how much a person wants something but also on the person's perception of how likely he or she is to get it?
Expectancy theory
What term describes power or influence derived from a person's special knowledge or expertise in a particular area?
Expert power
If a leader wants a high degree of commitment from his or her subordinates, which sources of power are most likely to lead to that?
Expert, referent, and charismatic
What name is given to the sale of goods and services to foreign markets?
Exporting
According to Micheal Porter, only established industries such as the soda and airline industry can benefit from the use of the 5 forces model.
FALSE
Which of the following refers to organizations owned either privately by one or more individuals or publicly by stockholders?
For- profit companies
What term describes the arrangement of positions, as shown on an organizational chart, that dictates where work activities are completed, where decisions should be made, and the flow of information?
Formal Organization
Your sales manager tells you that your widget sales are dropping dramatically, and you should drop the line. Your son-in-law says that widget sales are doing OK and that you should increase production. You increase production. You are engaging in
Framing
What name is given to a form of licensing in which a company agrees to provide a name, logo, methods of operation, advertising, products, and other elements associated with the company's business, in return for a financial commitment and the agreement to conduct business in accordance with the company's standard of operations?
Franchising
You watch a painter paint a house, and you videotape her movements. Later, you make specific recommendations for reducing her painting motions so she can be more efficient, and you also design a movable ladder for her to reduce fatigue. You are a disciple of
Frank and Lillian Gilbreth
Which of the following refers to the grouping of jobs according to similar economic activities, such as finance, production and operations, and marketing?
Functional Structure
What term describes the broad, complex factors that affect all organizations?
General environment
The fact that U.S. businesses now frequently engage in international trading relations is an illustration of what dimension of the general environment?
Global
What name is given to the final result that a firm wishes to achieve?
Goal
What term describes a theory that recognizes the importance of goals in improving employee performance?
Goal-setting theory
What are strategic goals?
Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services
In a situation where the customer can choose an identical product from a large number of financial institutions, such as a Visa credit card, the customer's influence on the organization's operations is
Great
Which of the following refers to the market value of a nation's total output of goods
Gross domestic product (GDP)
Which of the following refers to the phenomenon that occurs when cohesive "in-groups" let the desire for unanimity, or consensus, override sound judgment in generating and evaluating alternative courses of action?
Groupthink
What term is used to describe the product life cycle stage characterized by dramatic increases in the product's market share?
Growth
Managers tend to be more concerned about ethical issues that
Have immediate consequences
Jay Wilkinson suggests these type employees cause 90 % of all the problems in organizations.
High performers who don't live organizational values.
Understanding external factors is important to managers, equally important is knowing ____________
How to respond to the factors
_____ of a plan is where the organization goes from the "thinking" mode to the "doing" mode.
Implementation
Of all the steps in the decision making process, the step that is arguably most crucial and difficult is
Implementing the decision
Which of the following refers to a tax levied by a nation on goods bought outside its borders and imported into the country?
Import Tariff
If unethical behavior receives great reward and little punishment, then the likelihood that unethical behavior will recur is
Increased
Also known as moral philosophies, what term describes sets of principles that describe what a person believes are the right way to behave?
Individual Values
What term describes the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems?
Infastructure
What is meant by leading?
Influencing others' activities to achieve set goals
What name is given to the relationships among positions that are not connected by the organizational chart?
Informal organization
The basic mission of which of the following is to oversee the international monetary system and help ensure stable currencies and exchange rates throughout the world?
International Monetary Fund (IMF)
When a manger uses skills that are necessary to work with other people, such as communicating and listening he or she is using
Interpersonal Skills
You buy a thousand shares of Ralston Purina common stock because you just know it is going to go up in value. The next day, it plunges ten dollars. You have probably relied too much on your
Intution
Because many countries do not permit foreigners to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with the host country by forming a
Joint Venture
Drucker predicted that _____ would become increasingly important in the future, a prediction that became reality in the twenty-first century
Knowledge workers
What name is given to individuals who work primarily with information or who develop and use knowledge in the workplace?
Knowledge workers
The manager of the Boston Red Sox delivers a fiery speech just before the game about why it is critically important to beat the Yankees. He is...
Leading
What term describes a trade arrangement in which one company--the licensor--allows another company--the licensee--to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee, or royalty?
Licensing
Mass-production techniques of standardized products
Lowered production costs, which led to lower prices and expanded markets
Which of the following refers to the field of management that includes the study and use of mathematical models and statistical methods to improve the effectiveness of managerial decision making
Management Science
Which of the following refers to a systematic statement, based on observations, of how management process might best occur, given stated underlying principle
Management Theory
What name is given to individuals who make decisions about the use of the organization's resources, and are concerned with planning, organizing, leading, and controlling the organization's activities so as to reach its objectives?
Managers
________ believed capitalism would collapse upon itself and socialism was the way to a prosperous culture
Marx
At the age of 45, having made your fortune in the hamburger business, you sell the business, retire, and then take up full-time the hobby you love: painting. Whose theory or concept best describes your decision?
Maslow's self-actualization
In the TedTalk "Moral Operating Systems", Damon Horowitz discusses Plato's philosophy. Plato believed ethics were like ____________
Math
What name is given to a structure in which members of different functional departments are chosen to work together temporarily on a specific contract or project?
Matrix Structure
When a product has been on the market for many years, such as the automobile, and its growth is slow at best, what stage of the product life cycle is it said to be in?
Maturity
"Improving people's lives by providing gas and electric services in a sustainable way -- affordable, reliable and clean" is an example of
Mission Statement
Which of the following refers to the sum total of employees' attitudes toward their jobs, employer, and colleagues?
Morale
Your company's work teams have won national awards for making the finest widgets ever seen. Your loyal and productive workers have never been more proud of their work. What important characteristic of motivation is probably at an all-time high at your company?
Morale
For a company to maintain ethical behavior, its policies, rules, and standards to encourage ethical decision making
Must be enforced by rewards for proper behavior and punishments for unacceptable behavior
Which of the following characteristics relates to dumping?
Occurs when a country or business firm sells products at less than what it costs to produce them
What term describes an international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy, and that recommend and promote policies to improve the well-being of consumers and societies across the world?
Organization of Economic Cooperation and Development (OECD)
What term describes a person's ability to satisfy or deny satisfaction of another's need, based on a formal contractual relationship between an organization and the individual?
Organizational power
Which of the following characteristics relates to reward power?
Organizational power that stems from a person's ability to bestow rewards
When the manager of the Boston Red Sox uses the scouting, player development, and travel departments to make plans for an upcoming serious, he is...
Organizing
When an organization carries out the tasks of manufacturing a product or products, but contracts with other organizations to do all the supporting functional tasks, such as marketing, it is said to be
Outsourcing
You are the executive vice president of Banana Computer, Inc. You have a competitive machine, but your major competitor has the benefit of large-scale production, making its products less expensive to manufacture. In order to remain price-competitive, you send your parts and subassemblies to Mexico for the final stage of assembly, thereby taking advantage of
Outsourcing
________ occurs when an organization transfers manufacturing, services, and other functions to countries where labor and supplies are less expensive.
Outsourcing
The company that was founded on with strong CSR principles is
Patagonia
Which of the following characteristics best relates to resources?
People, equipment, finances, and data used by an organization to reach its objectives
What is the global dimension?
Pertaining to the general environment, those factors in other countries that affect the organization
What term describes the relationship of individuals, their rights, and their property to the state
Political Forces
The Sierra Club makes a major effort in Washington to pass a law banning the logging of old-growth forest in Oregon through its political action committee (PAC). It is operating in the
Political element of the political-legal dimension
What term is based on the idea that certain individuals or groups will be able to influence others to achieve their goals?
Political model of decision making
Within the general environment, which of the following refers to the nature of the relationship between various areas of government and the organization?
Political- legal dimension
An American firm's refusal to enter into a binding contract with a Russian oil firm because of the lack of clarity of Russian law in this area is based on the American firm's analysis of which dimension of the general environment?
Political-legal dimension
Which of the following refers to a person's capacity to influence the behavior and attitudes of others?
Power
Which of the following characteristics relates to information power?
Power that is a result of having access to important information that is not common knowledge, or of having the ability to control the flow of information to and from others
Which of the following refers to those who have a formal and/or contractual relationship with the firm, such as customers, suppliers, employees, regulators, investors, and communities?
Primary stakeholders
Which of the following characteristics relates to business ethics?
Principles, values, and codes of conduct that define acceptable behavior in business
Which of the following refers to the difference between a desired situation and the actual situation?
Problem
The motivational theories that try to determine "how" and "why" employees are motivated to perform are called
Process Theory
Which of the following refers to a set of theories that try to determine "how" and "why" employees are motivated to perform?
Process theories
When a manager decides to reorder inventory or establishes skill requirements for a certain job, she is making what type of decision?
Programmed
What name is given to decisions made in response to situations that are routine, structured, and fairly repetitive?
Programmed decisions
What name is given to an interpretation of the purpose of life, stat that, instead of merely waiting on earth for release into the next world, people should pursue an occupation and engage in high levels of worldly activity so that they can fulfill their calling?
Protestant ethic
When managers allow greater participation with regard to the design and implementation of projects, conflict within work groups is
Reduced
What name is given to personal power that results when one person identifies with and admires another?
Referent power
What name is given to a process theory that assumes that behavior may be reinforced by relating it to its consequences?
Reinforcement theory
When an organization gives someone authority, it expects something in return, namely
Responsibility
The condition under which managers are least confident about their decision making and most prone to err is
Risk
Which of the following refers to the condition that exists when decision makers must rely on incomplete, yet reliable information?
Risk
What name is given to a person's willingness to take risks when making decisions?
Risk propensity
What name is given to the evaluation of the organization's internal strengths and weaknesses and the opportunities and threats associated with the business's external environment?
SWOT Analysis
Which of the following refers to the decision maker's decision to choose the first alternative that appears to resolve the problem satisfactorily?
Satisficing
What term describes groups that have a less formal connection to the organization, such as environmentalists, special interest groups, and the media?
Secondary stakeholders
You are the international marketing manager for Brides & Grooms, Inc., a designer and manufacturer of wedding apparel. This year's fashions are featuring white for the entire wedding party. You scheduled this year's Asian kick-off for next Monday in Tokyo, when you discover that white is the Japanese color of mourning. What did you overlook?
Social and cultural differences
What is the theory that states that employees learn not only through direct experience but also through observation and personal qualities?
Social learning theory
What name is given to the obligation a business assumes to maximize its positive impact and minimize its negative impact on society?
Social responsibility
What term is used to describe the actual number of subordinates over which a position has authority?
Span of Control
What name is given to an environment in which stakeholder demands, and specifically customer desires, are well understood and relatively steady over time?
Stable environment
Which of the following refers to a person or group that can affect or is affected by, and organization's goals or the means to achieve those goals?
Stakeholder
What name is given to the degree to which a firm understands and addresses stakeholders demands?
Stakeholder orientation
Which of the following refers to a partnership formed to create competitive advantage on a worldwide basis?
Strategic Alliance
What term describes goods or services that may be used in place of those furnished by a given business?
Substitutes
The Union Electric Company, a St. Louis utility, buys a large shipment of coal from Peabody Coal Company for use in its coal-fired plants. Peabody is one of Union Electric's
Suppliers
You own a gourmet restaurant in Atlanta. You send your chef, Pierre LePeachtree, to a major international restaurant-owners' meeting so he can find out what some of the hot new entrees are around the world. You are being sensitive to the
Task Enviroment
The parties it deals with, such as suppliers, customers, and organizations producing substitute goods, are all a part of a firm's
Task enviroment
Karl Marx is mostly known for his writing in the book _____
The Communist Manifesto
Which of the following characteristics relates to positive reinforcement?
The act of strengthening a desired behavior by rewarding it or providing other positive outcomes
Which of the following characteristics relates to a business-level strategy?
The area of responsibility usually assigned to the divisional-level managers
Which of the following characteristics relates to the sociocultural dimension?
The aspect of the general environment that includes the demographics, attitudes, and the values of the society within which an organization operates
Which of the following characteristics relates to certainty?
The condition that exists when decision makers are fully informed about a problem, its alternative solutions, and its respective outcomes
What is meant by job specialization?
The division of work into smaller, distinct tasks
Strategic planning differs from general planning in that it focuses on
The external environment and long-term goals
Which of the following characteristics relates to departmentalization?
The grouping of related jobs to form an administrative unit--department, area, or center
Which of the following characteristics relates to bounded rationality?
The idea that people have limits to their rationality
What is meant by legitimate power?
The influence that comes from a person's formal position in an organization and the authority that accompanies that position
Which of the following characteristics relates to technical skills?
The knowledge and ability to accomplish the specialized activities of the work group
What is meant by geographic division structure?
The organization of divisions by geographic region
Your fellow employees regularly take home company supplies such as paper, pens, tape, and glue for their personal use. Although you feel it is wrong to do so, you begin taking home company supplies too. The strongest influence on your behavior is
The overall moral climate of your organization
Which of the following characteristics relates to leadership?
The process of influencing the activities of an individual or a group toward the achievement of a goal
What is meant by corporate strategy?
The scope and resource deployment components of strategy for the enterprise as a whole
What is an embargo?
The suspension of trade in a particular product by the government
Which of the following characteristics relates to framing?
The tendency to view positively presented information favorably and negatively presented information unfavorably
Which of the following relates to organizational culture?
The values, norms, and artifacts shared by members of an organization
What is meant by organizational structure?
The way managers group jobs into departments and departments into divisions
What term describes the assumption that people are naturally lazy, must be threatened and forces to work, have little ambition or initiative, and do not try to fulfill any need higher than security needs at work?
Theory X
What name is given to the assumption that people naturally want to work, are capable of self-control, seek responsibility, are creative, and try to fulfill higher-order needs at work?
Theory Y
One of Dan Pink's main points was
There is a disconnect between what science knows and what business does
Which of the following is NOT part of Jim Collin's "First Who" concept?
They put their best people on the biggest challenges
Which of the following characteristics relates to controlling?
Those activities that an organization undertakes to ensure that its actions lead to achievement of its objectives
Which of the following characteristics relates to motivational factors?
Those aspects of a job that relate to the content of the work, including achievement, recognition, the work itself, involvement, responsibility, and advancement
What are maintenance factors?
Those aspects of a job that relate to the work setting, including adequate wages, comfortable working conditions, fair company policies, and job security
The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of
Trading company
Which of the following refers to a more traditional approach in which managers engage in both task- and consideration-oriented behaviors in an exchange manner?
Transactional leadership
Which of the following characteristics relates to a joint venture?
When a company that wants to do business in another country finds a local partner (occasionally, the host nation itself) to share the costs and operation of the business
The role of management in fostering ethical behavior in an organization is extremely important because managers
Who ask employees to do something wrong have a powerful influence
The ______ loans money to countries throughout the world for reconstruction and development, and also makes loans to poorer countries for infrastructure and social services purposes.
World Bank
You own a computer company, and you launch a joint venture with a competitor to create a new super-speed tablet. Unfortunately, you do not realize that your operating system is totally incompatible with that of the other company's, and the new venture fails miserably. This is the result of
Your failure to cope with the technological dimension of the general environment
When a nation pays for imports with its own goods, it is using
a countertrade agreement
You are the president of Henry Motor Corp., and you see the great potential markets in Eastern Europe for personal transportation. Your plan is to purchase an old Soviet tank plant and convert it into an auto factory. The Russian government welcomes your plan, which is an example of
a direct investment
When we can identify a symptom of a problem, it is helpful and significant because then we know that
a problem exists.
In SWOT analysis, an ability or attribute that a company possesses that may give it a distinctive competence is called
a strenght
When a department in an organization has a high level of absenteeism, we are dealing with
a symptom of a problem, not the problem itself
Poor morale is most likely to cause
absenteeism
The First Lady's primary source of power is
affiliative
For the step of generating alternative courses of action to be effective, decision making must
allot enough time to generate creative alternatives.
What is meant by capitalism
an economic system where in the natural law of supply and demand and free competition within the marketplace will efficiently regulate the flow of resources within a society
The United States' prohibition of the importing of Cuban cigars is an example of
an embargo
Frederick Taylor
analyzed jobs to improve efficiency
Because most decision situations involve some degree of risk and uncertainty, they quite regularly lead to
anxiety and stress
The other side of disastrous escalation of commitment is
bailing out of a course of action too soon
For businesspersons to be ethical, they must strive for success while
being fair, just, and trustworthy
The group decision technique designed to maximize the generation of creative alternatives to a problem is
brainstorming
Developing widespread electric charging stations for electric cars is an illusion of
building technological infrastructure
A positive contribution of the informal relationships in the organization's operation is
communication and interaction.
Two factors that go hand in hand in managerial decision making and may have positive or disastrous organizational effects are
confidence and risk propensity.
What term describes a business-level strategy aimed at achieving the overall lowest cost structure in an industry?
cost leadership
According to the text, a blueprint of acceptable behavior that is passed from one generation to the next is called
culture
According to Dan Ariely, when individuals are faced with complex decisions, the _________option is often chosen.
default
The difference between an ethic and a law is that a law
defines a minimally acceptable standard of conduct
The first step in strategic planning is
determining the mission and strategic goals.
Your saltwater taffy, which you produce right next to the Pacific Ocean in Orchard Park, Oregon, has a national reputation. You sell all you can make, and people drive hundreds of miles to your shop to buy it. You have a
distinctive competence
MidAmerican Energy Holdings Company has doubled its wind energy capacity by installing windmills and high-tech batteries to make it a "cleaner" utility company. In high-tech renewable energy, this company has a
distinctive competence.
Which of the following refers to the relationship of people to resources
economic forces
When a performance evaluation is based on favoritism and political opportunity, rather than on merit, an ethical issue has arisen in the area of
employee relations
The examination of input-output ratios, employee contributions, and the perception of fairness is most associated with
equity theory
When a manager persists in a failing course of action and discounts negative information, he or she is engaging in
escalation of commitment
You fire two of your employees for drinking on the job. Soon you have to fire four more, then six more. You threaten remaining employees with legal action if they drink on the job. Your policy is based on
escalation of commitment
Three important trends that are impacting business today are e-business, global organizations, and
ethics and social responsibility
There is increasing evidence that transformational leaders
exist at all levels in organizational hierarchies and in a broad range of organizations.
In expectancy theory, if a person believes that extra effort will lead to high performance, such as a bonus or commission, we are talking about the person's
expectancy
Professors, computer geniuses, mechanics, airline pilots, and ship captains supposedly have a lot of
expert power
Jay Wilkinson suggests the best way to deal with "haters" is to not hire them. If, its too late, and you already have them in your organization he suggests _____
fire them
The organizational chart shows the structure of the ________, which is the arrangement of positions that dictates where work activities are completed, where decisions should be made, and the flow of information.
formal organization
When Henri Fayol said that management's role is to "forecast and plan, to organize, to command, to coordinate, and to control," he was stating the
functional definition of management.
As defined in the text, organizations are groups of individuals who work together to achieve
goals and objectives important to them
One of the significant conclusions that has been drawn from the Hawthorne studies is that
human relations and the social needs of workers are a critical variable in management.
Experts generally agree that the first step in decision making is
identifying the problem.
Arliey suggests that shredding one's work is as impactful as
ignoring work
You make a brilliant executive decision to use robots to manufacture your high-tech widgets. You buy ten robots, then tell your workers about your decision. They immediately go out on strike. You have failed to
implement the decision
The purchase of goods and services from a foreign source defines
importing
You are an apple farmer and spokesperson for the American Apple Association. You are faced with severe dumping from apple growers in Transoceania, where apples grow wild and the people pay to pick apples as a form of recreation. To counter this threat, you are going to lobby Congress and the president to
impose a protective import tariff
A negative effect of the informal organization, particularly in times of crisis, may well be
inaccurate information
The real cause of the increase in output at Western Electric's Hawthrone plant was
increased attention paid to workers
The basic assumption of the classical approach to job design is that division of labor and job specialization
increases an organization's overall productivity
According to Hofstede's cultural dimensions theory, _____ tend to be self-reliant and place a high level of importance on freedom and ambition, while _____ place more value on the team than the individual
individualists; collectivists
Giving employees tickets to "cash in" for a paid day off when they get their projects done well ahead of the deadline is an example of the creative use of
informal rewards
As it relates to decision making, risk may be said to be the condition that exists when
information is reliable, but incomplete.
You are a computer whiz, and you have installed some software that monitors all incoming and outgoing company emails. You have no formal understanding of leadership theory, but you clearly understand
information power
One of the keys to successful implementation of a decision in an organization is to
involve individuals affected by it in every step of the process.
When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in Moscow, Russia, the company
is exporting the lenses
The classic model of decision making
is prescriptive; it says how managers should make decisions.
Although regulations and laws sharply limit a leader's ability to use coercive power, it is a fair assessment that
it is still too commonly used in business settings
Which of the following characteristics relates to a servant leader?
leader who leads by example and forms strong relationships with employees
The phrase caveat emptor means
let the buyer beware
Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This arrangement is known as
licensing
You are the producer of Western Denim brand blue jeans. The pants are in high demand in Pangia; however, shipping costs, tariffs, and trade restrictions are insurmountable. As a last resort, you have entered into an agreement to let a local Pangian manufacturer use your name, materials, and trademark to produce the jeans in exchange for a royalty. This is a
licensing agreement
At even the largest and most affluent corporation, the strategic management process begins with
limited resources
A good way to judge a decision is
look at the situation from several viewpoints
Social responsibility is the obligation a business has to
maximize its positive impact on society and minimize its negative impact
When financial institutions such as J.P. Morgan reward employees with bonuses and other financial incentives for making risky decisions, they may find that their attempts to motivate employees
may sometimes have negative effects on the organization.
The primary concern of the behavioral approach to job design is that work needs to be
more complex and challenging
The _____ conflict that exists within an organization, the _____ the perception of the ethicalness of the work group.
more; lower
To achieve organizational objectives, employees must have the ability, tools, and _____ to perform their jobs.
motivation
In the systems approach to management, an open system is usually thought of has having
much interaction with external enviroment
A corporation that operates in several countries without significant ties to any of them is a
multinational
Dan Pink says that tying incentives to work
narrow focus
Sue wants to be warm, but she is not; she has a
need
A decision to build a new plant, acquire another company, create a new position, enter into a strategic alliance, invest in enhancing operations, or develop a new product is a ______ type of decision.
non-programmed
In SWOT analysis, an environmental circumstance that is potentially beneficial for the firm is called
oppertunity
New employees learn who is important in a company and who is not by knowing its
organizational structure
Reward power, which stems from a person's ability to bestow rewards, is
organizationally based.
What name is given the transfer of manufacturing or other functions (such as data processing) to countries where labor and supplies are less expensive?
outsourcing
You manage a semiprofessional baseball team, and you call up the Toronto Blue Jays and challenge them to a million-dollar match, winner take all. You suffer from
overconfidence and excessive risk propensity.
Businesses must first be responsible to their _____ who are primarily concerned with earning a profit.
owners
When extra effort is required from employees and managers have no control over rewards and punishments and close supervision is not practical
personal sources of power are essential.
While open discussion of an ethical issue may not eliminate all ethical problems in an organization, discussion will usually
promote trust and learning in an organization
What term describes the act of weakening or eliminating an undesired behavior by providing negative consequences?
punishment
A personal source of power that a leader possesses when he or she is admired by employees who identify with the leader is called
referent power
While you don't like it, you hire a production manager today who you know is dependable, even though in three weeks you might be able to hire a person who is potentially brilliant. In decision-making language, you have
satisficed
You admire Sam Walton because he founded Wal-Mart when everyone said that discount stores in small cities would not work. You admire his
self-confidence and intuitive ability.
An employee's confidence that he or she can perform a task or behavior successfully is called
self-efficacy.
Most businesspeople engaged in international trade underestimate the importance of
social and cultural differences
Which external factor is the hardest to forecast
socio-cultural
The translation of product names can be a crucial factor in the success or failure of a foreign marketing effort because of
sociocultural differences
The agreement between Japan's Sony Corporation and the Swedish telecommunication company Ericsson to make mobile phones is an example of a
strategic alliance
The organizational form or structure that an organization takes needs to be consistent with the
strategy it intends to pursue
The primary weakness of the matrix structure is
that each team member reports to two bosses
The birth of the human relations approach to motivation can be traced to
the Hawthorne studies
Herzberg's two-factor theory proposes that
the absence of maintenance factors may dissatisfy workers
In a decision making situation where the decision maker satisfies,
the first satisfactory alternative is chosen
The greater a person's exposure to unethical behavior, the greater is the likelihood that
the person will behave unethically
One of the justified criticisms of the classical model of decision making is that it is
too unrealistic and time consuming to be applied to real situations.
Generally speaking, there are three conditions that affect decision making: certainty, risk, and
uncertainty.
With regard to leadership and management, most American companies today appear to be
under-led and over-managed.
In applying reinforcement theory, one of the problems in punishing unacceptable behavior is that punishment may produce
undesirable long-term side effects.
According to research, the most important factor affecting daily ethical decisions at work is the
work group or the perceived ethicalness of the work group.
