4-7

Which of the following is a method by which a company can act ethically toward employees and meet their expectations?

By creating an occupational structure that fairly and equitably rewards organizational members for their contributions

Which principle dictates that managers should receive a raise in pay based upon their contributions to the organization, and not based on their gender?

Distributive justice

Inflation is an example of a(n) _____ force in an organization's environment.

Economic

Which of the following is a step to manage diversity effectively?

Empower employees to challenge discriminatory behaviors

Which of the following is a guideline for managers to evaluate employees?

Ensure that performance standards are not vague

The final step in the planning process of an organization is to determine the organization's mission and goals.

False

The tendency of managers to ignore critical information is not as serious as the existence of incomplete information.

False

Which of the following statements is true about ethics?

Laws change to reflect the changing ethical beliefs of a society.

Which of the following is a guideline for managers to avoid the negative effects of cognitive biases?

List the criteria that are being used to assess and evaluate alternatives.

Which of the following is an assumption made by the classical model?

Managers have access to all the information they need.

Which of the following can be defined a threat according to the five forces model?

Only a few large customers are available to buy an industry's output

Which of the following is the right approach to eradicating sexual harassment?

Organizations should develop and clearly communicate a sexual harassment policy.

Which of the following is true of schemas?

People tend to pay attention to information that is consistent with their schemas.

John, an operations manager, has chosen an alternative way to solve a problem he is faced with. Now John must decide whether the company has the capabilities and resources required to implement the alternative. Which criterion of decision-making is he focusing on?

Practicality

_____ results from the tendency to make decisions based on preexisting beliefs even though evidence suggest that those beliefs are wrong

Prior hypothesis bias

The supervisor of medical billing at a hospital has established a rubric that helps her make objective decisions when promoting employees in her department. Which principle are the supervisor's actions based on?

Procedural justice

A group of managers analyze both, the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment. What type of analysis is this?

SWOT analysis

Which of the following is true of perception?

The effects of perception lead to different interpretations in the area of diversity.

Which of the following statements is true of organizational ethics?

The individual ethics of a company's founders and top managers are especially important in shaping the organization's code of ethics.

According to an organization's SWOT analysis, which of the following would be a potential strength?

The organization has the highest profit margin in its market.

Which of the following statements is true about stockholders?

They have a claim on a company because when they buy its stock or shares, they become its owners.

An organization that is not presently in a task environment but has the resources to enter if it so chooses is called a potential _____.

competitor

To deal with opportunities and threats, managers must select one solution from a set of alternatives. This process is known as _____.

decision making

WorldCom gave managers stock options and bonuses even when the company performance was declining, and managers sold their stock in advance of other stockholders. This illustrates the_____ approach.

defensive

An organization attempting to succeed by distinguishing its products from those of the competition is most likely to use a(n) _____.

differentiation strategy

ALT Inc. conducts periodic reviews to assess the extent to which law firms support diversity in their activities. It uses this information to decide which law firms would be most suitable to represent it legally. This is an example of effective:

diversity management.

Bryan is the manager of a company which has been judged as having the best corporate reputation for two years in a row, based on a survey of country-wide consumers. This company is well known for its:

ethical culture

The moral principles and beliefs about what is the right or appropriate way to behave are known as _____.

ethics

Robert and his HR team have adapted several existing company policies. He is unsure if all these policies can be implemented on ethical grounds. His team can approach a(n) _____ to resolve the matter.

ethics ombudsperson

The _____ has organizationwide authority, hence, organizational members in any department can communicate instances of unethical behavior by their managers or coworkers without fear of retribution.

ethics ombudsperson

A high quality, well-designed product will always be successful in the market

false

Absolute rules exist to determine how individuals should behave in every situation.

false

According to the moral rights rule, managers should choose the course of action that best protects and upholds their personal rights.

false

According to total quality management philosophy, quality is defined by the managers involved in quality control or engineering.

false

An obstructionist approach displays the highest level of social responsibility.

false

Business ethics are only important because the failure of a company can solely have catastrophic effects on the goals of the company.

false

Distributors are the individuals and companies that provide an organization with the input resources it needs to produce goods and services.

false

Diversity is an important organizational resource that doesn't contribute to an organization's competitive advantage.

false

Employees are much more likely to act ethically when a credo does not exist or is avoided.

false

Following the distributive justice principle means that all members of an organization receive identical or similar outcomes.

false

Innovation refers to producing goods and services that have attributes—such as design, styling, performance, and reliability—that customers perceive as being superior to those found in competing products.

false

It is not necessary for top management to give rewards in order to have successful diversity management initiatives.

false

Low rivalry results in a task environment where competitive pressures are intense and managers have few opportunities to acquire the resources they need to make their organizations effective.

false

Managers today have fewer ways to supervise and coordinate geographically dispersed employees.

false

National culture is the traditional system of relationships established between people and groups in a society.

false

Nonprogrammed decision making is a routine, virtually automatic process.

false

The administrative model developed by March and Simon fails to explain why decision making is always an inherently uncertain and risky process.

false

The disparity between the representation of women and that of men in the workforce is extremely high.

false

Though laws often change, ethical principles remain constant and do not change over time.

false

Under the moral rights rule, an ethical decision is one that distributes benefits and harms among people and groups in an equitable way.

false

Which of the following is true of the salience effect?

individuals who are salient are often perceived to be primarily responsible for outcomes.

The last step in the managerial decision-making process is:

learning from feedback

Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee is referred to as:

licensing.

As the manager of Taylor Construction, Scott created a policy that required all subcontractors to submit monthly reports to show the percentage of work that was completed by their diverse employees. This is an example of:

managing diversity

Jordan, the manager of JT's Tasty Treats, has to decide whether to introduce a new frozen dessert that has never been sold previously. What type of decision would this represent?

nonprogrammed

Decisions that are based on rules and guidelines are known as:

programmed decisions

The esteem or high repute that individuals or organizations gain when they behave ethically is called _____.

reputation

Unlike previous generations, salespeople today can work from home offices, communicate with colleagues in different parts of the world almost instantly, and commute electronically to work. This flexibility is due to changes in_____.

technological forces

If white male managers perceive other white male managers more positively than managers from minority groups, this is called:

the similar-to-me effect.

Which of the following is an aim of distributive justice within an organization?

to ensure that outcomes are not distributed based on a person's personal characteristics like race or age

"An ethical decision is one that a typical person in a society would think is acceptable" is a statement that reflects the practical rule.

true

"An ethical decision is one that a typical person in a society would think is acceptable"; this is a statement that reflects the practical rule.

true

A value chain is a chain of functional activities that transforms inputs into finished goods or services customers value.

true

Cost advantages associated with large operations are called economies of scale.

true

Customers are often regarded as the most important stakeholder group.

true

Decisions that managers take to protect the rights of some stakeholders often hurt the rights of others.

true

Economic, technological, sociocultural, demographic, political, and legal forces in the general environment often have important effects on forces in the task environment that determine an organization's ability to obtain resources.

true

Employees are stakeholders of a company.

true

Ethical beliefs lead to the development of laws and regulations.

true

From a moral rights perspective, managers should consider courses of action that are profitable to the company.

true

Groupthink causes the unintended effect of discouraging individuals from raising issues that run counter to majority opinion.

true

Moral principles or beliefs about what is the right or appropriate way to behave are known as ethics.

true

Steve has noticed that there has been an error in his weekly pay stub and the company has unknowingly paid him too much. Steve is pondering about whether to report this issue or not. This is an example of an ethical dilemma.

true

Stockholders seek to maximize the return on their investment and therefore show interest in the ethical practices of a company.

true

The Age Discrimination in Employment Act of 1967 prohibits age discrimination.

true

The concept of procedural justice requires managers to be fair to subordinates in deciding who should be promoted within the organization.

true

The final step in the decision-making process is learning from feedback.

true

The first step in defining an organization's mission is to define its business.

true

The people and groups affected by how a company and its managers behave are called its stakeholders.

true

The people and groups affected by hw a company and its managers behave are called its stakeholders.

true

The term glass ceiling alludes to the invisible barriers that prevent minorities and women from being promoted to top corporate positions.

true

The way a company's managers view their duty to make decisions that enhance the well-being of stakeholders is called organizational ethics.

true

There is substantial evidence that diverse individuals continue to experience unfair treatment in the workplace as a result of biases, stereotypes, and overt discrimination.

true

Under the utilitarian rule, an ethical decision is that which creates the greatest good for the greatest number of people.

true

When faced with a serious ethical dilemma, Michael chose a solution that created the greatest good for the greatest number of people. Michael used the utilitarian rule.

true

When one person starts to profit by behaving unethically, it encourages other people to act in the same way.

true

_____ are beliefs about what a society considers to be good, right, desirable, or beautiful.

values