Management 300 Test 1 Study Questions

Even though management and management practices seem to change rapidly, which of the following best explains the importance of studying the history of management? To understand past management practices allows managers to work to eliminate them in favor of new practices. A historical perspective presents a way to search for patterns and determine whether they recur across time periods. Successful methods from the past should never be changed. Managers can obtain a narrower perspective from which to pinpoint successful methods going forward.

A historical perspective presents a way to search for patterns and determine whether they recur across time periods. (Historical perspective provides managers with a broader way of thinking, a way of searching for recurring patterns, and a way to learn from others' mistakes and successes in order to avoid or repeat them, respectively. See Section 1.7: Innovative Management Thinking for a Changing World.)

Which of the following provides a formal definition of organization? Effective and efficient corporations A social entity that is goal-directed and deliberately structured Entities in which technology dominates Small, offbeat, and nonprofit entities that are more important to society than large corporations

A social entity that is goal-directed and deliberately structured (Technology may be important to an organization, but it does not define the organization. Organizations are made of up of two or more people who construct tasks to achieve a specific outcome. See Section 1.3: Organizational Performance.)

Interest in the practices of management techniques that developed out of World War II was increased by the publication in 1946 of Peter Drucker's: Managing for Results. Concept of the Corporation. The Human Side of Enterprise. General and Industrial Management.

Concept of the Corporation. (Drucker's book spurred scholars to development mathematical tools for corporate managers. See Section 1.11: Management Science.)

A problem with a supplier's delivery capabilities has arisen for Nadia's department. In order to make a decision about the shipment and continued relationship with this particular supplier, Nadia will evaluate the supplier's track record of deliveries, the circumstances around the delivery changes, and the effects of her department's ability to effectively adapt to the delivery changes. Her analysis is part of which of the following perspectives? Scientific management Humanist view Contingency view Universalist view

Contingency view (With the contingency view, managers understand that what works in one organizational situation might not work in others. The goal is to identify important contingencies that help guide their decisions. See Section 1.12: Recent Historical Trends.)

Which of the following statements about managerial skills is true? Expressing an interest in team members' success and personal well-being pushes past a line managers should never cross. In times of crisis, creating cooperation and teamwork is more important than communicating effectively. Failure of managers to achieve desired results is most often based on poor human skills and a failure to clarify direction and performance expectation. Managers find, as they reach higher levels of management, that equal application of each of the three management skills increases in importance.

Failure of managers to achieve desired results is most often based on poor human skills and a failure to clarify direction and performance expectation. (The number one reason for manager failure is ineffective communication skills and practices. See Section 1.4: Management Skills.)

Maslow's hierarchy of needs contributed a great deal to this perspective of management. Scientific management Human resources perspective Customer relationship management Contingency view

Human resources perspective (Maslow's ideas were quite influential in viewing worker participation as a central feature in the human resources perspective. See Section 1.10: Humanistic Perspective.)

Which statement best describes the difference between the human resources perspective of management and the behavioral sciences approach? Human resources perspective advocates management by walking around; the behavioral sciences approach focuses on organizational design. Human resources perspective is based on Theory X assumptions; the behavioral sciences approach is based on Theory Y assumptions. Human resources perspective and behavior sciences approach are essentially the same thing. Human resources perspective designs jobs so that workers are encouraged to use their full potential; the behavioral sciences approach bases practices on theories developed using various social sciences.

Human resources perspective designs jobs so that workers are encouraged to use their full potential; the behavioral sciences approach bases practices on theories developed using various social sciences. (The human resources perspective sees the best design of jobs as an approach to drawing out workers' full potential. Behavior sciences approach uses social sciences to understand human behavior and interaction in organization settings. See Section 1.10: Humanistic Perspective.)

What are the three categories into which managerial skills can be placed? Planning, controlling, leading Human, conceptual, technical Automatic, perceptual, decisional Conceptual, informational, tactical

Human, conceptual, technical (The necessary skills for managing a department or an organization fall within the three categories of human, conceptual, and technical. See Section 1.4: Management Skills.)

Which of the following reasons explains why some nonprofits are complying with the aspects of the Sarbanes-Oxley Act? It institutes a more appropriate metric of success. It allows them to provide services to paying clients. It offers them more options for advertising and public relations. It allows them to be more competitive when seeking funds.

It allows them to be more competitive when seeking funds. (Although the Sarbanes-Oxley Act (the 2002 corporate governance reform law) does not apply to nonprofits, many are adopting its guidelines, striving for greater transparency and accountability to boost credibility with constituents and be more competitive when seeking funding. See Section 1.6: Managing in Small Businesses and Nonprofit Organizations.)

Criticism of the scientific management approach includes which of the following? It fails to acknowledge the variance among individuals. It accommodates the social context of work. It is based on a careful study of tasks and jobs. It eliminates interruptions in work.

It fails to acknowledge the variance among individuals. (Scientific management does not accommodate work's social context, but it does eliminate interruptions and is based on study of tasks. The criticism here is that it does not recognize the variances among individuals. See Section 1.9: Classical Perspective.)

Which of the following is NOT among the qualities of a high-performing culture? It focuses relentlessly on financial performance. It is based on a solid organizational mission or purpose. It encourages individual employee ownership of both bottom-line results and the organization's cultural backbone. It embodies shared adaptive values that guide decisions and business practices.

It focuses relentlessly on financial performance. (A relentless focus on financial performance may lead to success in the short term, but the company's success likely cannot be sustained without an increased focus on building a more positive culture. See Section 2.5: Shaping Corporate Culture for Innovative Response.)

In the traditional approach to management, this management principle would be described as autocratic, whereas in new competencies, it is characterized by dispersal and empowerment. Accomplishing tasks Overseeing work Leading Managing relationships

Leading (The overseeing work management principle is characterized by enabling. Leading is the management principle that is characterized by dispersal and empowerment. See Section 1.1: Management Competencies for Today's World.)

Modern management is best characterized by which of the following statements? Trends in contemporary management have changed little in the past twenty years. Historical perspectives of management are not found in use today. The humanistic perspective continues to be the single most prevalent guide for managers. Managers are always looking for techniques and approaches that more adequately respond to customer needs and the demands of the environment.

Managers are always looking for techniques and approaches that more adequately respond to customer needs and the demands of the environment. (Dozens of ideas and techniques in modern management can trace their roots to historical perspectives as innovative concepts emerge to address new management challenges. See Section 1.13: Innovative Management Thinking into the Future.)

Scientific management is characterized by which of the following statements? Managers recognized the importance of personnel selection and training. Managers regarded workers as well-informed and used their ideas and suggestions. Managers appreciated the social context of work and higher needs of workers. Managers acknowledged variance among individuals.

Managers recognized the importance of personnel selection and training. (Scientific management demonstrated the importance of compensation for performance, initiated the careful study of tasks and jobs, and demonstrated the importance of personnel selection and training. See Section 1.9: Classical Perspective.)

The underlying principle of the contingency view is best described by which of the following statements? Satisfied workers will produce more work. Management is an impersonal activity in which decisions are made on a rational basis that relies on clearly defined authority and responsibility. Managers understand that what works in one organizational situation might not work in others. Jobs should be designed to meet people's higher-level needs by allowing workers to use their full potential.

Managers understand that what works in one organizational situation might not work in others. (The contingency view tells managers that what works in one organizational situation might not work in others. Managers can identify important contingencies that help guide their decisions regarding the organization. See Section 1.12: Recent Historical Trends.)

Which of the following individuals did not make a significant contribution to classical management? Max Weber Frederick Taylor Mary Parker Follett Lillian Gilbreth

Mary Parker Follett (Taylor, Gilbreth, and Weber were all significant contributors to the classical perspective, whereas Follett's contributions led to the humanistic perspective. See Section 1.9: Classical Perspective.)

In a study of good managers conducted by Google, which of the following was NOT found as one of good behaviors for managers? Micromanage your team for greatest productivity. Be a good coach. Help your employees with career development. Be productive and results-oriented.

Micromanage your team for greatest productivity. (Helping employees with career development is a good managerial behavior, whereas micromanaging your team is not. See Section 1.4: Management Skills.)

To fulfill the controlling management function, a manager would do which of the following? Set goals and ways to attain them. Monitor activities and make corrections. Evaluate and obtain new technologies. Use influence to motivate employees.

Monitor activities and make corrections. (Establishing targets and measuring performance are part of the management function of control. See Section 1.2: The Basic Functions of Management.)

Physical symbols or visible artifacts are associated with the surface level of organizational culture, whereas the invisible part of the corporate culture includes several aspects. Which of the following would not be among the invisible aspects of corporate culture? Deep beliefs Underlying assumptions Organizational symbols Expressed values

Organizational symbols (At a deeper, less obvious level of corporate culture are values and beliefs, which are not observable but can be discerned from how people explain and justify what they do. See Section 2.3: The Internal Environment: Corporate Culture.)

The difference between scientific management and the administrative principles approach can be expressed by which of the following statements? Scientific management is a subfield of the historic perspective, whereas the administrative principles approach is a subfield of humanistic perspective. Scientific management acknowledged variance among individuals, whereas the administrative principles approach disregarded variance among individuals. Scientific management focused on the total organization, whereas the administrative principles approach focused on the productivity of the individual worker. Scientific management ignored workers' ideas and suggestions, whereas the administrative principles approach utilized workers' ideas and suggestions.

Scientific management ignored workers' ideas and suggestions, whereas the administrative principles approach utilized workers' ideas and suggestions. (Scientific management focused on the productivity of the individual worker; the administrative principles approach focused on the total organization. See Section 1.9: Classical Perspective.)

Managers in a large organization are less likely to be called upon in this role than a manager in a small business. Disturbance handler Spokesperson Monitor Leader

Spokesperson (Managers at all organizations will find themselves in the role of leader. A manager in a small business may be the only person in that organization to transmit information to outsiders. See Section 1.6: Managing in Small Businesses and Nonprofit Organizations.)

All of the following reflect the concerns of managers of nonprofit entities EXCEPT: Financial aid comes from government appropriations, grants, and donations. Efforts are made toward generating some kind of social impact. The focus is on improving an organization's products and services to increase sales revenues. Services are provided to nonpaying clients.

The focus is on improving an organization's products and services to increase sales revenues. (Financial resources for nonprofit organizations typically come from government appropriations, grants, and donations rather than from the sale of products or services to customers. In businesses, managers focus on improving an organization's products and services to increase sales revenues. See Section 1.6: Managing in Small Businesses and Nonprofit Organizations.)

Environmental shifts create turbulence for businesses. Which of the following statements about turbulence is true? The level of turbulence determines the type of response that managers must make in order for an organization to survive. With decreasing turbulence, more strategic issues arise. As the level of turbulence increases, the organization benefits more when managers focus on subtle environmental changes rather than the dramatic changes. Although turbulence contributes to environmental shifts, it does not influence the organization's internal environment.

The level of turbulence determines the type of response that managers must make in order for an organization to survive. (The level of turbulence created by an environmental shift will determine the type of response that managers must make in order for an organization to survive. Managers continuously scan the business horizon for both subtle and dramatic environmental changes, also called strategic issues, and identify those that require strategic responses. See Section 2.2: The Organization-Environment Relationship.)

What are the two dimensions used to measure the level of uncertainty in an organization's external environment? The number of an organization's competitors and the number of suppliers The ratio of boundary spanning activities to the number of international contact points, supplier and customer The number of factors in the environment and the rate of change of those factors Big data analytics and business intelligence

The number of factors in the environment and the rate of change of those factors (The external environment can be evaluated along two dimensions. First, one can evaluate (high to low) a number of factors in the environment. Second, one can evaluate (high to low) the rate of change of those factors. See Section 2.2: The Organization-Environment Relationship.)

Manager Y wants to achieve high performance levels. How will she know when they have been reached? The company's executives will inform her that those levels have been reached. Those levels contribute to attaining the organization's goals by using resources efficiently and effectively. Planning and control functions will not experience any variations. The company's customers will be satisfied.

Those levels contribute to attaining the organization's goals by using resources efficiently and effectively. (Performance is defined as an organization's ability to attain its goals by using resources in an efficient and effective manner. The ultimate responsibility of managers is to achieve high performance. See Section 1.3: Organizational Performance.)

Companies in the high-tech industry face rapid changes as technology evolves. They need cultures that support the company's ability to rapidly detect, interpret, and translate signals from the environment into new behaviors. These companies have a(n) _____ culture. involvement achievement consistency adaptability

adaptability (The adaptability culture emerges in an environment that requires fast response and high-risk decision making. Managers encourage values that support the company's ability to rapidly detect, interpret, and translate signals from the environment. See Section 2.4: Types of Culture.)

In Cool Company's two subsidiaries, production managers meet monthly to share production processes and evaluate which are yielding the best results. They then incorporate those findings in improving output and the employee environment. This process is known as: reengineering. benchmarking. contingency planning. employee involvement.

benchmarking. (Four significant elements of total quality management are employee involvement, focus on the customer, benchmarking, and continuous improvement, often referred to as kaizen. Benchmarking refers to a process whereby companies find out how others do something better than they do and then try to imitate or improve on it. See Section 1.12: Recent Historical Trends.)

As a manager at a company in the financial industry, Rick continuously scans the business horizon for _____, which are also called strategic issues. subtle changes to the stated definition of the organization's basic business scope and operations global scenarios arising from scenario building exercises company responses to be taken in the case of emergencies, setbacks, or unexpected conditions both subtle and dramatic environmental changes

both subtle and dramatic environmental changes (Managers continuously scan the business horizon for both subtle and dramatic environmental changes, also called strategic issues, and identify those that require strategic responses. See Section 2.2: The Organization-Environment Relationship.)

Managers often use business intelligence software to link to and coordinate the organization with key elements in the external environment through: scenario building. boundary spanning. turbulence management. joint ventures.

boundary spanning. (Boundary spanning links to and coordinates the organization with key elements in the external environment. See Section 2.2: The Organization-Environment Relationship.)

Weber felt that rational authority should provide the foundation for management in his: human resources perspective. humanistic perspective. systems thinking approach. bureaucratic organizations approach.

bureaucratic organizations approach (Weber believed that an organization based on rational authority in his bureaucratic approach would be more efficient and better able to adapt to change. See Section 1.9: Classical Perspective.)

Many managers use sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant, which reveals: business intelligence. environment intelligence. tactical plans. contingency plans.

business intelligence. (One area of boundary spanning is the use of business intelligence, which results from using sophisticated software to search through internal and external data to spot patterns, trends, and relationships that might be significant. See Section 2.2: The Organization-Environment Relationship.)

Maxwell Accounting Services has been in operation for more than 70 years. It takes pride in providing thorough and professional accounting services to its business clients, many of whom have been with Maxwell for their entire company's life. Based on this description, Maxwell has a(n) _____ corporate culture. consistency achievement involvement adaptability

consistency (The consistency culture supports and rewards a methodical, rational, and orderly way of doing things. See Section 2.4: Types of Culture.)

Manager A oversees the work of five employees by monitoring their production output according to a rigid schedule. Manager B helps five employees set goals for meeting production output. In this management principle of overseeing work, Manager A would be described as a _____, whereas Manager B is more a(n) _____. collaborator; mobilizer leader; autocrat controller; enabler mobilizer; supervisor

controller; enabler (A controller often employs rigid oversight, but an enabler helps employees work better. See Section 1.1: Management Competencies for Today's World.)

The key factor in creating an organizational climate that enables learning and innovative responses to threats from the external environment, challenging new opportunities, or organizational crises is the role played by: the task environment. a company's symbols and slogans. corporate culture. visible artifacts.

corporate culture. (Corporate culture plays a key role in creating an organizational climate that enables learning and innovative responses to threats from the external environment, challenging new opportunities, or organizational crises. See Section 2.5: Shaping Corporate Culture for Innovative Response.)

An organization's _____ reflects the degree to which it can achieve its stated goal or accomplish what it tries to do. effectiveness efficiency information technology

effectiveness (Effectiveness is about accomplishing organizational goals in producing products and services that customers value. See Section 1.3: Organizational Performance.)

Manager B's organization decided to discontinue two of its products that customers no longer felt met their needs and expand production of two other products that customers were demanding. This is an example of organizational: flexibility. efficiency. effectiveness. information processing.

effectiveness. (Organizational efficiency involves the specific amount of resources used in production. Organizational effectiveness means that its products are providing value to customers. See Section 1.3: Organizational Performance.)

An organization uses a specific amount of raw material, money, and people as inputs to a production process in such a way that it maximizes output, contributing to organizational: effectiveness. efficiency. knowledge. planning.

efficiency. (Planning is a management function in which goals are set, not a measurement of how well an organization uses resources in producing a given amount of product. Efficiency relates to the amount of resources used in production. See Section 1.3: Organizational Performance.)

Achieving better quality requires companywide participation in quality control. Within total quality management, this concept is known as: Theory X. the Hawthorne effect. benchmarking. employee involvement.

employee involvement. (Benchmarking refers to a process whereby companies find out how others do something better than they do and then try to imitate or improve upon it. Employee involvement means that achieving better quality requires companywide participation in quality control. All employees are focused on the customer; companies find out what customers want and try to meet their needs and expectations. See Section 1.12: Recent Historical Trends.)

Using limited resources to create something of benefit is labeled with the term jugaad, which some also refer to as: reverse engineering. reengineering. systems engineering. frugal engineering.

frugal engineering (With research and development budgets strained in today's economy, managers have quickly picked up on this approach, sometimes calling it frugal engineering. See Section 1.7: Innovative Management Thinking for a Changing World.)

Customer relationship management systems: provide a basis for managers to identify important contingencies that guide their organizational decisions. allow managers to make decisions based upon their view of the organization as a whole. gather large amounts of data that are managed and made available to employees. are based on the four important elements of employee involvement, focus on the customer, benchmarking, and continuous improvement.

gather large amounts of data that are managed and made available to employees. (Collecting and managing large amounts of customer data allows companies and their employees to respond quickly to shifting customer needs and desires. See Section 1.14: Managing the Technology-Driven Workplace.)

Manager C is a middle manager in Corporation M. In her daily activities, her _____ skills are required at a greater degree than her _____ skills. conceptual; planning technical; human technical; conceptual human; conceptual

human; conceptual (Human skills are a greater requirement than conceptual or technical skills for effectiveness at a middle manager level. See Section 1.4: Management Skills.)

Alstars Inc. began a program for managers to help them learn how to empower employees to solve minor problems on the production line. This program follows the _____ perspective. humanistic classical bureaucratic administrative

humanistic (The concepts of empowerment and allowing employees to act in certain situations are part of the humanistic perspective. See Section 1.10: Humanistic Perspective.)

The _____ perspective of management emerged several decades before the _____ perspective of management. technology-driven workplace; total quality management humanistic; classical humanistic; contingency systems thinking; classical

humanistic; contingency (The only management perspective older than the humanistic perspective, which arose in the 1930s, is the classical perspective. See Section 1.8: The Historical Struggle: The Things of Production Versus the Humanity of Production.)

Martin and Clara develop software programs that help the managers in their company address production, allocation, and scheduling issues. They work in _____, which is a subset of management science. operations management operations research information technology organization development

information technology (Operations research, operations management, and information technology are all subsets of management science; information technology or IT specifically deals with management information systems. See Section 1.11: Management Science.)

Bristol received an "Innovator of the Year" award at the manufacturing company where he works. He is part of the company's ____ environment. general economic task internal

internal (A company's internal environment consists of management, employees, and the organizational culture. See Section 2.1: The External Environment.)

The application of mathematics and statistics to management decision making and problem solving is known as: the Hawthorne effect. total quality management. scientific management. management science.

management science. (Management science is also referred to as the quantitative perspective and relies heavily on statistical techniques. See Section 1.11: Management Science.)

The primary difference between management of business organizations and management of nonprofit organizations is: managers in business organizations direct their activities toward earning money for the company and its owners, while managers in nonprofits focus more on generating a social impact. managers in nonprofits do not benefit from having business knowledge. that financial resources for nonprofits are unlimited whereas resources for business organizations are limited to the profits of the company. insignificant because planning, organizing, leading, and controlling are the same everywhere.

managers in business organizations direct their activities toward earning money for the company and its owners, while managers in nonprofits focus more on generating a social impact. (Because nonprofit organizations do not have a conventional bottom lines, managers may struggle with the question of what constitutes results and effectiveness. See Section 1.6: Managing in Small Businesses and Nonprofit Organizations.)

A manager uses social media to coordinate brainstorming sessions among team members who are geographically separated as a tool to effectively manage the principle of: leading. designing. overseeing work. managing relationships.

managing relationships. (Encouraging collaboration and communication among team members through social media falls within the management principle of managing relationships. See Section 1.1: Management Competencies for Today's World.)

For new managers, one of the tasks they report as finding most stressful is: listening to employees. managing time pressures. networking. delegating duties.

managing time pressures. (Managers report most enjoying leading others, networking, and leading innovation. Among the most stressful parts of their new roles is managing the time pressures of the job. See Section 1.5: What Is a Manager's Job Really Like?)

The _____ of Disney and Pixar in 2006 resulted in Disney-Pixar, a highly successful and profitable company. joint venture merger big data analytics acquisition

merger (A merger occurs when two or more organizations combine to become one. See Section 2.2: The Organization-Environment Relationship.)

For the first time in U.S. census history, _____ of all babies born in 2011 were members of minority groups. more than half greater than 10 percent almost two-thirds about 30 percent

more than half (Recent census data show that more than half (50.4 percent) of the babies born in 2011 were members of minority groups—Hispanics, African American, Asian, and other minorities. The growing diversity has significant implications for business. See Section 2.1: The External Environment.)

According to Mintzberg, manager _____ are divided into three conceptual categories: informational (managing by information), interpersonal (managing through people), and decisional (managing through action). positions operations roles responsibilities

roles (A role is a set of expectations for a manager's behavior. See Section 1.5: What Is a Manager's Job Really Like?)

Which of the following would you NOT find among recent management trends? Scientific management E-business Customer relationship management Virtual organizations

scientific management (E-business, virtual organizations, and customer relationship management are all management approaches that have developed in recent decades. Scientific management is a classical perspective of management. See Section 1.13: Innovative Management Thinking into the Future.)

As the pace of change in the business world increases, management idea life cycles have _____, and the interval it takes for a popular management idea to peak has _____. shortened; shrunk to fewer than three years shortened; shrunk to one year or less lengthened; grown to seven or more years lengthened; grown to about five years

shortened; shrunk to fewer than three years (The need for managers to find management tools to help them get the most out of their limited resources have shortened life cycles and shrunk the interval over which a new management idea peaks to three or fewer years. See Section 1.13: Innovative Management Thinking into the Future.)

For California Milk Producers, "Got Milk" has been a highly successful: story. symbol. visible artifact. slogan.

slogan (A slogan is a phrase or sentence that succinctly expresses a key corporate value. In this case, the slogan reminds customers to drink milk. See Section 2.3: The Internal Environment: Corporate Culture.)

Because each successive generation is more technologically savvy than their parents, companies are wise to consider the ways in which advances in technology will change their demands in other areas of their lives, such as entertainment, home décor, clothing, and spending patterns in general. These considerations are part of the _____domain of businesses' external environment. labor market management sociocultural natural

sociocultural (The sociocultural dimension of the general environment represents the demographic characteristics, norms, customs, and values of the general population. By understanding these profiles and addressing them in the organization's business plans, managers prepare their organizations for long-term success. See Section 2.1: The External Environment.)

When an employee shifts from individual contributor to manager, the transformation can be likened to going from a(n): interdependent worker to independent worker. identifier to the identified. planner to being a specialist. specialist to a generalist.

specialist to a generalist. (An individual performer is more likely to work independently. The individual performer is a specialist, and the manager is more a generalist in coordinating a broad range of tasks. See Section 1.5: What Is a Manager's Job Really Like?)

Taylor Robins's company has just experienced an accidental explosion at one of its facilities. Taylor must act in her role as _____ and provide the public with information about the situation. negotiator monitor figurehead spokesperson

spokesperson (The informational role of spokesperson handles communication with outside entities in a variety of situations. See Section 1.5: What Is a Manager's Job Really Like?)

The CEO of Kerplunk Toys often tells how he was fishing with his young son one day and they were talking about "Dad's new job," which was in fact the beginning stages of a start-up toy company. The CEO was still trying to decide on the venture's name when a huge frog jumped into the water in front of them and splashed them both. They laughed and laughed and the son said, "That was some kerplunk!" His comment inspired the company name. The CEO affirms his company's value of family through this: story. visible artifact. hero. deeply held belief.

story. (A story is a narrative based on true events that is repeated frequently and shared among organizational employees. Stories paint pictures that help symbolize the firm's vision and values. See Section 2.3: The Internal Environment: Corporate Culture.)

A difficulty managers often encounter when making decisions about subsystems is that: the circle of causality will be broken and other departments will not be affected. synergy will be positively affected for one system but not another. subsystems are distinct and therefore changes in one subsystem will fail to yield benefits to other subsystems. subsystems are interdependent and decisions in one will affect operation requirements in another.

subsystems are interdependent and decisions in one will affect operation requirements in another. (Solving problems in a complex system requires a grasp of relationships among the parts of the whole system. Changes in one subsystem will affect operations of other subsystems. See Section 1.12: Recent Historical Trends.)

Monte Package Company manufactures packing trays that hold fruit. Sodaltech makes pulp-molding machinery. In this scenario, Sodaltech is Monte Packaging's: supplier. labor market. competitor. customer.

supplier. (Suppliers provide the raw materials, including machinery, the organization uses to produce its output. See Section 2.1: The External Environment.)

The ideas that organizations are often complex and need to be seen as a whole, that management decisions in one area will likely affect other areas, and that what works in one situation may not work in another are descriptive of: total quality management and scientific management. systems thinking and contingency view of management. Theory Y and Maslow's hierarchy of needs. human resources and human relations perspectives.

systems thinking and contingency view of management. (In systems thinking, solving problems in a complex system requires a grasp of relationships among the parts of the whole system; and with the contingency view, managers understand that what works in one organizational situation might not work in others. See Section 1.12: Recent Historical Trends.)

Nonmanagers tend to rely more heavily on the application of _____ skills, whereas to be successful, managers will need a greater level of _____ skills relative to other skills. technical; human conceptual; technical human; technical communication; conceptual

technical; human (For nonmanagers, technical skills are required to a greater degree than either conceptual or human skills. For managers, it is the application of human skills that outweighs the application of technical and conceptual skills. See Section 1.4: Management Skills.)

At Street Industries, employee morale was low and affecting productivity. Management brought in consultants who trained them to be more positive with employees and give them tools to increase positive aspects of human relations within the company. The consultants work follows what was learned in _____ of the early 1900s. Theory X the administrative principles approach total quality management the Hawthorne studies

the Hawthorne studies (The administrative principles approach was part of the classical rather than the humanistic approach. The result of the Hawthorne studies was an emphasis on human relations. See Section 1.10: Humanistic Perspective.)

An articulation of the classical perspective of management dates back to: the late 1800s. 1870. the 1940s. 1930.

the late 1800s. (As a management perspective, classical management arose out of the significant changes happening in industry in the late 1880s. See Section 1.8: The Historical Struggle: The Things of Production Versus the Humanity of Production.)

At the Principal Lake Company, each new employee is greeted, either by the CEO or the vice president of human resources at that employee's first department-wide meeting with a framed copy of the company's motto and a coffee mug with the employee's name and the company logo on it. This long-standing tradition is one of the company culture's: evident beliefs. visible artifacts. observable values. overlying assumptions.

visible artifacts. (Visible artifacts are all the things one can see, hear, and observe by watching members of the organization. They include things such as manner of dress, patterns of behavior, physical symbols, organizational ceremonies, and office layout. See Section 2.3: The Internal Environment: Corporate Culture.)

In her conception of management, Mary Parker Follett would likely have disagreed with which of the following principles? The organization benefits from shared goals with workers. Work should be facilitated rather than controlled. Management is most effective when based on impersonal and rational authority. Worker participation and empowerment are to be encouraged.

Management is most effective when based on impersonal and rational authority. (The humanistic perspective, in Follett's case, believed that facilitating workers, sharing goals with them, and empowering them provide the most effective approach to management. See Section 1.10: Humanistic Perspective.)

_____ are responsible for instilling the cultural values the organization needs to be successful in its environment. Managers Customers Mission statements Employees

Managers (Managers are responsible for instilling the cultural values the organization needs to be successful in its environment. The relative emphasis on various cultural values depends on the needs of the environment and the organization's focus. See Section 2.4: Types of Culture.)

In the matrix that illustrates four organizational outcomes based on the relative attention that managers pay to cultural values and business results, which of the following is true of the managers in Quadrant A? Managers do not meet performance goals or uphold cultural values. Managers meet performance goals but fail to uphold cultural values. Managers do not meet performance goals but do uphold cultural values. Managers achieve performance goals and uphold desired cultural values.

Managers meet performance goals but fail to uphold cultural values. (Quadrant A represents organizations that are focused primarily on bottom-line results and pay little attention to organizational values. See Section 2.5: Shaping Corporate Culture for Innovative Response.)

Which of the following statements about international management is NOT true? The basic management functions of planning, organizing, leading, and controlling are the same whether a company operates domestically or internationally. Managers will experience fewer difficulties and risks when performing necessary management functions on an international scale. When operating business internationally and comparing one country to another, the economic, legal-political, and sociocultural sectors present the greatest difficulties. International management is the management of business operations conducted in more than one country.

Managers will experience fewer difficulties and risks when performing necessary management functions on an international scale. (Actually, managers experience greater difficulties and risks when performing the management functions of planning, organizing, leading, and controlling on an international scale. See Section 3.5: Legal-Political Challenges.)

The triple bottom line provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders. a. True b. False

b. False

Which of the following would be a principle-based statement within a company's code of ethics? "We are committed to creating an environment in which all are treated with dignity and respect that brings out the full potential in each of us." "We will not engage in unauthorized use, copying, distribution, or alteration of software or other intellectual property." "Employees who award contracts or who can influence the allocation of business must avoid actions that create the appearance of favoritism." "Before engaging in any activity, transaction, or relationship that might give rise to a conflict of interest, employees must seek review from their managers."

"We are committed to creating an environment in which all are treated with dignity and respect that brings out the full potential in each of us." (Principle-based statements are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees. See Section 4.7: Managing Company Ethics and Social Responsibility.)

Which of the following would be a policy-based statement within a company's code of ethics? "Managers have a responsibility to create an open and supportive environment where employees feel comfortable raising such questions." "We all deserve to work in an environment where we are treated with dignity and respect." "We must avoid any relationship or activity that might impair, or even appear to impair, our ability to make objective and fair decisions when performing our jobs." "The success of our business is dependent on the trust and confidence we earn from our employees, customers, and shareholders."

"We must avoid any relationship or activity that might impair, or even appear to impair, our ability to make objective and fair decisions when performing our jobs." (Policy-based statements generally outline the procedures to be used in specific ethical situations. These situations include marketing practices, conflicts of interest, observance of laws, proprietary information, political gifts, and equal opportunities. See Section 4.7: Managing Company Ethics and Social Responsibility.)

About _____ of American adults reach the postconventional level of moral development and are able to act in an independent, ethical manner regardless of expectations from others inside or outside the organization. 40 percent 20 percent 10 percent 60 percent

20 percent (Only about 20 percent of adults reach the postconventional level and are able to act in an independent, ethical manner, regardless of the expectations of others. See Section 4.4: The Individual Manager and Ethical Choices.)

Organizations often join together to adapt to or influence the environment. The number of corporate alliances has been increasing at a rate of _____ annually. 35 percent 10 percent 40 percent 25 percent

25 percent (With tough global competition, constantly changing technology, and shifting government regulations, few companies can compete effectively unless they join with other firms in various partnerships. The number of corporate alliances has been increasing at a rate of 25 percent annually. See Section 2.2: The Organization-Environment Relationship.)

A Gallup poll asked American people whether they agreed with the statement that corporate America's moral compass is "pointing in the wrong direction," and _____ said yes. 50 percent 30 percent 10 percent 75 percent

75 percent (In a recent Gallup poll regarding the perception of business leaders, more than 75 percent of people surveyed agree with the statement that corporate America's moral compass is "pointing in the wrong direction." See Section 4.1: What Is Managerial Ethics?)

_____ is an example of part of the legal-political dimension of the general environment. A report on the decline of unemployment An editorial about the condition of Illinois's rivers A report of the demographics of a potential market

A change in the regulations regarding the provision of health insurance to employees (The legal-political dimension includes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior. See Section 2.1: The External Environment.)

With which of the following corporate cultures would an achievement culture be the best fit? A results-oriented culture that value competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results A fast-response and high-risk decision-making environment An internal-focused organization that has a consistency orientation for a stable environment An internal- and employee-need-focused environment where the organization is seen as having a caring, family-like atmosphere

A results-oriented culture that value competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results (The achievement culture is suited to organizations concerned with serving specific customers in the external environment, but without the intense need for flexibility and rapid change. See Section 2.4: Types of Culture.)

Which of the following indicates partnering organizations are moving from an adversarial orientation to a partnership orientation? A shift from business assistance in interactions to contracts that limit that relationship A shift from using virtual teams to resolve conflict to using lawsuits to resolve conflict A shift from minimal involvement and up-front investment to involvement in partner's product design and production A shift from long-term contracts to short-term contracts

A shift from minimal involvement and up-front investment to involvement in partner's product design and production (In a partnering paradigm, partners are frequently involved in one another's product design and production, and they are committed for the long term; it is not unusual for business partners to help one another, even outside of what is specified in the contract. See Section 2.2: The Organization-Environment Relationship.)

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with suppliers? Accepting favors or kickbacks Using false or deceptive sales techniques Tolerating a work environment that includes harassment Falsifying sensitive data concerning product quality

Accepting favors or kickbacks (There are various ways in which organizations sometimes behave unethically toward customers, employees, and other stakeholders. Accepting favors or kickbacks, violating contract terms, and paying without accurate records or invoices are some of the ways in which an organization behaves unethically with suppliers. See Section 4.1: What Is Managerial Ethics?)

In an environment that requires fast response and high-risk decision making, what type of culture is most likely to emerge? Involvement culture Adaptability culture Consistency culture Achievement culture

Adaptability culture (The adaptability culture emerges in an environment that requires fast response and high-risk decision making. Managers encourage values that support a company's ability to rapidly detect, interpret, and translate signals from the environment into new behaviors. See Section 2.4: Types of Culture.)

With which of the following corporate cultures would an involvement culture be the best fit? A results-oriented culture that values competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results A fast-response and high-risk decision-making environment An internal-focused organization that has a consistency orientation for a stable environment An internal- and employee-need-focused environment where the organization is seen as having a caring, family-like atmosphere

An internal- and employee-need-focused environment where the organization is seen as having a caring, family-like atmosphere (The involvement culture places a high value on meeting the needs of employees and emphasizes cooperation, consideration of both employees and customers, and avoiding status differences. See Section 2.4: Types of Culture.)

With a rapidly growing middle class eager to experience the finer things in life, consumer spending represents about 60 percent of _____ economy, but heavy debt loads have begun to curb consumer spending. India's Australia's China's Brazil's

Brazil's (Brazil is one of the countries that are increasingly gaining managers' attention. Brazil has a young, vibrant population—the largest in Latin America—and a rapidly growing middle class eager to experience the finer things in life. See Section 3.2: The Changing International Landscape.)

Which of the following statements about the elements of the external organizational environment is true? An organization's external environment includes all potential and actual suppliers, employees, and resources. An organization's external environment includes elements that exist outside the boundary of an organization and have the potential to affect the organization. An organization's external environment includes elements that exist outside the boundary of an organization that focus only on profits and laurels to the organization. An organization's external environment includes every aspect of international business.

An organization's external environment includes elements that exist outside the boundary of an organization and have the potential to affect the organization. (The external organizational environment includes all elements existing outside the boundary of an organization that have the potential to affect the organization. The environment includes competitors, resources, technology, and economic conditions that influence the organization. See Section 2.1: The External Environment.)

Which of the following statements about management is FALSE? Arranging events in chronological order is the primary contribution of studying history. Managers are always on the lookout for new techniques and approaches to meet shifting organizational needs. Looking at history gives managers a broader perspective for interpreting and responding to current opportunities and problems. Management and organizations today are shaped by forces in the larger society.

Arranging events in chronological order is the primary contribution of studying history. (Studying history means developing an understanding of the impact of societal forces on management and to achieve strategic thinking, not merely to present the chronology of events. See Section 1.8: The Historical Struggle: The Things of Production Versus the Humanity of Production.)

Winnington Capital promotes a "family at work" atmosphere through measures such as family health insurance, opportunity for flex hours, and an emphasis on work-family life balance. Winnington strives to operate as a profitable business at the same time it encourages better relationships among families and work colleagues. Winnington would fall within Quadrant: C. A. D. B.

B. (Companies in Quadrant B put high emphasis on both culture and solid business performance as drivers of organizational success. Managers in these organizations align values with the company's day-to-day operations. See Section 2.5: Shaping Corporate Culture for Innovative Response.)

The idea that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world's poorest people is the basis for which of the following? Globalization Global outsourcing Bottom of the pyramid (BOP) concept Multinational corporations

Bottom of the pyramid (BOP) concept (The bottom of the pyramid (BOP) concept proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world's poorest people. The term bottom of the pyramid refers to the more than 4 billion people who make up the lowest level of the world's economic "pyramid" as defined by per capita income. See Section 3.3: Multinational Corporations.)

Which emerging economies are referred to as BRIC? Brazil, Russia, China, India Belarus, Romania, Colombia, Israel Belgium, Russia, Chile, Indonesia Bolivia, Romania, Colombia, India

Brazil, Russia, China, India (Brazil, Russia, China, and India are the largest of the world's emerging economies and expected to experience shortages of executive talent for the next few years. See Section 3.1: A Borderless World.)

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with financial stakeholders? Accepting favors or kickbacks Using false or deceptive sales techniques Tolerating a work environment that includes harassment Breaching database controls

Breaching database controls (There are various ways in which organizations sometimes behave unethically toward customers, employees, and other stakeholders. Breaching database controls, falsifying financial reports, and using confidential information are some of the ways in which organizations behave unethically with financiers. See Section 4.1: What Is Managerial Ethics?)

Among the fast-growing economies, _____ is considered to be strong in manufacturing. Australia South Africa India China

China (China is strong in manufacturing, whereas India is a major provider of services. Many companies are going straight to China or India as a first step into international business. See Section 3.2: The Changing International Landscape.)

Which of the following would NOT be included in the People part of the triple bottom line that looks at the level of an organization's social responsibility? Contributions to the community Commitment to environmental sustainability Fair labor practices Treatment of employees

Commitment to environmental sustainability (The People part of the triple bottom line looks at how socially responsible an organization is in terms of fair labor practices, diversity, supplier relationships, treatment of employees, contributions to the community, and so forth. See Section 4.5: What Is Corporate Social Responsibility?)

Which of the following would be included in the Planet part of an organization's triple bottom line? Contributions to the community Commitment to environmental sustainability Fair labor practices Financial results

Commitment to environmental sustainability (The Planet aspect measures an organization's commitment to environmental sustainability. See Section 4.5: What Is Corporate Social Responsibility?)

Which of the following descriptions best explains what sustainability is? Companies committed to sustainability engage in economic development that generates wealth and meets the needs of the current generation while preserving the environment and society for future generations. Sustainability refers to a systematic way organizations identify the expectations, needs, importance, preferences, and relative power of various stakeholders of an organization, which may change over time. Companies committed to sustainability engage in self-regulating thoughts and behavior to accomplish all organizational tasks and handle difficult or challenging situations. With sustainability goals, managers alter jobs to increase both the quality of employees' work experience and their productivity.

Companies committed to sustainability engage in economic development that generates wealth and meets the needs of the current generation while preserving the environment and society for future generations. (Some corporations embrace the idea of sustainability or sustainable development. Sustainability refers to economic development that generates wealth and meets the needs of the current generation while preserving the environment and society so future generations can meet their needs as well. See Section 4.5: What Is Corporate Social Responsibility?)

Which of the following organizations participates in an administrative principles approach? Company B, which insists on unity of command, scalar chain, and division of work Company A, which has a hierarchical structure with rules and procedures uniformly applied to all employees Company D, which focuses on managing the total organization to deliver quality to customers Company C, which supports effective control as based within the individual rather than imposed from without

Company B, which insists on unity of command, scalar chain, and division of work (A bureaucratic approach is based on a hierarchical structure in which rules and procedures are uniformly applied throughout. An administrative principles approach depends on unity of command and division of work. See Section 1.9: Classical Perspective.)

An organization's internal environment includes corporate culture, production technology, organization structure, and physical facilities. Which of these is considered extremely important to competitive advantage? Organization structure Corporate culture Physical facilities Production technology

Corporate culture (Culture guides how people within the organization interact with one another and how the organization interacts with the external environment, thus playing a significant role in organizational success. See Section 2.3: The Internal Environment: Corporate Culture.)

When considering the role of cultural leaders, which of the following statements is true? Even if they do not believe in their organization's vision, cultural leaders will follow and uphold it. Cultural leaders remain committed to values during challenging times or crises. Cultural leaders are not likely to introduce new culture values to employees. For cultural leaders, cultural values take a back seat when an organization is faced with environmental turbulence.

Cultural leaders remain committed to values during challenging times or crises. (Cultural leaders uphold their commitment to values during difficult times or crises. Upholding the cultural values helps organizations weather a crisis and come out stronger on the other side. See Section 2.5 Shaping Corporate Culture for Innovative Response.)

When considering an organization's cultural values and business performance, which of the following statements is true? Business performance tends to deteriorate when managers concentrate more on cultural values. Companies that succeed in a turbulent world are those that carefully monitor cultural values rather than business performance. Cultural values and business performance are independent of each other. Cultural values that are not connected to business performance are not likely to benefit an organization during challenging times.

Cultural values that are not connected to business performance are not likely to benefit an organization during challenging times. (When cultural values are not connected to business performance, they are not likely to benefit an organization during hard times. Companies that succeed in a turbulent world are those that pay careful attention to both cultural values and business performance. See Section 2.5: Shaping Corporate Culture for Innovative Response.)

Which of the following dimensions is a part of an organization's internal environment? Customers Legal/political Suppliers Culture

Culture (A major part of the organization's internal environment is its corporate culture, which is both shaped by the external environment and shapes how managers respond to changes in the external environment. See Section 2.1: The External Environment.)

Which of the following statements best explains why managers need to pay attention to culture? Organizations without a positive and excellent corporate culture cannot be financially successful. Strong corporate cultures always promote positive values and behaviors. Culture guides how people within the organization interact with one another and how the organization interacts with the external environment, which means it plays a significant role in organizational success. Members of a corporate culture must be consciously aware of corporate values.

Culture guides how people within the organization interact with one another and how the organization interacts with the external environment, which means it plays a significant role in organizational success. (Managers have to think about culture because culture guides how people in the organization interact and how the organization interacts with the external environment, thus playing a significant role in organizational success. See Section 2.3: The Internal Environment: Corporate Culture.)

According to Mintzberg, which of the following is a function of a leader? Forwarding information to other organization members Directing and motivating subordinates Performing ceremonial and symbolic duties Maintaining information links inside and outside an organization

Directing and motivating subordinates (A figurehead performs ceremonial and symbolic duties. The role of a leader is an interpersonal role. A leader directs and motivates, trains and counsels, and communicates with subordinates. See Section 1.5: What Is a Manager's Job Really Like?)

In this decisional role, according to Mintzberg, a manager takes corrective action during conflicts or crises. Negotiator Disturbance handler Spokesperson Disseminator

Disturbance handler (A disturbance handler takes corrective action during conflicts/crises and resolves disputes among subordinates. See Section 1.5: What Is a Manager's Job Really Like?)

Which of the following dimensions is a part of an organization's general environment? Economic Labor market Competitors Management

Economic (As part of the general environment, the economic dimension represents the general economic health of the country or region in which the organization operates. See Section 2.1: The External Environment.)

Which of the following would NOT fall among the resources that a manager uses in the process of management? Efficiency Human resources Raw materials Information

Efficiency (Human resources, information, and raw materials are resources used to meet organizational goals. Efficiency is an outcome or result of performance rather than a resource. See Section 1.2: The Basic Functions of Management.)

_____ are becoming major markets for the products and services of North American firms. Traditional trading partners Fledgling democracies Local micromarkets Emerging economies around the world

Emerging economies around the world (The emerging economies are becoming major markets for the products and services of North American firms. Finding managers with the mind-set needed to succeed in these countries is proving difficult for multinational firms. See Section 3.1: A Borderless World.)

Which of the following groups is among the primary stakeholders of an organization? Employees Regulatory authorities Trade unions Local governments

Employees (Investors and shareholders, employees, customers, and suppliers are considered primary stakeholders, without whom an organization cannot survive. Investors, shareholders, and suppliers' interests are served by managerial efficiency—that is, use of resources to achieve profits. See Section 4.5: What Is Corporate Social Responsibility?)

Which of the following would NOT be characteristic of a manager who practices ethical leadership? Fair in his or her dealings with employees and customers Honest and trustworthy Encourages a win-at-all-costs attitude Behaves ethically in both his or her personal and professional life

Encourages a win-at-all-costs attitude (Ethical leadership means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional life. See Section 4.7: Managing Company Ethics and Social Responsibility.)

According to Mintzberg, which of the following manager roles involves initiating improvement projects and identifying new ideas? Disseminator Spokesperson Negotiator Entrepreneur

Entrepreneur (The role of an entrepreneur is a decisional role. An entrepreneur initiates improvement projects, identifies new ideas, and delegates idea responsibility to others. See Section 1.5: What Is a Manager's Job Really Like?)

_____ is the code of moral principles and values that governs the behaviors of individuals or groups. Managerial responsibility Ethics Social responsibility Free choice

Ethics (Ethics is the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong. See Section 4.1: What Is Managerial Ethics?)

Total quality management can best be described by which of the following statements? Every activity within a company focuses on high-quality values that form the basis for delivering quality products/services to customers. It provides the basis for Theory X management. Managers rather than frontline workers are responsible for the quality control process. It focuses on specific tasks instead of broader organizational tasks to deliver better quality to customers.

Every activity within a company focuses on high-quality values that form the basis for delivering quality products/services to customers. (Total quality management (TQM), which focuses on managing the total organization to deliver better quality to customers, infusing high-quality values throughout every activity within a company, with frontline workers intimately involved in the process. See Section 1.12: Recent Historical Trends.)

Which of the following is a key economic factor in the international environment? Time orientation Exchange rates Government intervention Demographic profile

Exchange rates (Economic factors in the international environment include exchange rates, economic development, infrastructure, resources and product markets, per capita income, and economic conditions. See Section 3.5: Legal-Political Challenges.)

Many American shoppers say they would pay higher prices for U.S.-made products to keep jobs from going overseas. This statement is a reflection of which of the following concepts? Global backlash Joint ventures Geocentrism Bottom of the pyramid

Global backlash (The size and power of multinationals, combined with the growth of free trade agreements, has sparked a backlash over globalization. A 2010 survey found that 53 percent of Americans surveyed said that free trade has actually hurt the United States. This sentiment is reflected in other countries as well. See Section 3.3: Multinational Corporations.)

Which of the following is a key legal-political factor in the international environment? Language Formal education Infrastructure Government intervention

Government intervention (Legal-political factors in the international environment include government intervention, political risk, tariffs, quotas, taxes, terrorism, political instability, and laws and regulations. See Section 3.5: Legal-Political Challenges.)

In the GLOBE Project, which of the following cultural dimensions was among those added to the original four dimensions listed by Hofstede? Humane orientation Individualism Power distance Uncertainty avoidance

Humane orientation (The five dimensions added in the GLOBE Project include humane orientation, future orientation, assertiveness, gender differentiation, and performance orientation. See Section 3.6: Sociocultural Challenges.)

Which of the following statements or questions best illustrates the thinking of a person at the postconventional level of moral development? I know this is not right, and I will not do it, even if everyone else is. What would my boss think if I did this? What am I going to get from making this decision? Everybody else is doing it, so it must be okay.

I know this is not right, and I will not do it, even if everyone else is. (At the postconventional level, internal values become more important than the expectations of others. See Section 4.4: The Individual Manager and Ethical Choices.)

European automobile manufacturers welcome the markets in other parts of the world, including setting up factories in some of those countries. The automobile market is mostly stable, but the push for "greener" models continues to motivate companies to innovate. In which of the following corporate cultures would you place these companies? In an achievement culture with some characteristics of an adaptability culture Solidly in a consistency culture In an involvement culture with some characteristics of an adaptability culture Solidly in an adaptability culture

In an achievement culture with some characteristics of an adaptability culture (Most auto manufacturers would adopt an achievement culture, which is suited to organizations concerned with serving specific customers in the external environment, but without the intense need for flexibility and rapid change. Because managers encourage values that support the company's ability to rapidly detect, interpret, and translate signals from the environment as well as actively encourage and reward creativity, experimentation, and risk-taking, these companies would also benefit from an adaptability culture. See Section 2.4: Types of Culture.)

Which of the following descriptions best defines corporate social responsibility? It guides management as they initiate a business venture, organize necessary resources, and take on the associated risks and rewards. In taking actions, organizational managers make choices that will enhance the welfare and interests of both society and their organizations. Management conducts a process of raising capital through small amounts of money from a large number of investors, using channels such as social media and the Internet. Organizations introduce products, services, or processes that radically change competition in an industry.

In taking actions, organizational managers make choices that will enhance the welfare and interests of both society and their organizations. (Corporate social responsibility (CSR) refers to the obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of society, as well as their organizations. As straightforward as this definition seems, CSR can be a difficult concept to grasp because different people have different beliefs as to which actions improve society's welfare. See Section 4.5: What Is Corporate Social Responsibility?)

Which of the following two countries have had the fastest-growing economies in recent years? India and China Brazil and Mexico China and Germany United States and China

India and China (Many companies today are going straight to China or India as a first step into international business. See Section 3.2: The Changing International Landscape.)

Which of the following statements best describes India as an emerging economy? India lags far behind China in software design and precision engineering. India has a high per capita income. India has a large English-speaking population; therefore, it is an obvious choice for U.S. companies to outsource services. India is particularly strong in manufacturing.

India has a large English-speaking population; therefore, it is an obvious choice for U.S. companies to outsource services. (Whereas China is strong in manufacturing, India is a rising power in software design, services, and precision engineering. Numerous companies see India as a major source of technological and scientific brainpower, and the country's large English-speaking population makes it a natural for U.S. companies wanting to outsource services. See Section 3.2: The Changing International Landscape.)

A small manufacturing business from Ohio is considering taking its first step into international business. It is most likely to go to: South Africa. Japan. Brazil. India.

India. (Many companies today are going straight to China or India as a first step into international business. See Section 3.2: The Changing International Landscape.)

Which of the following is included among Hofstede's four national value systems dimensions? Future orientation Assertiveness Individualism and collectivism Performance orientation

Individualism and collectivism (Hofstede identified four dimensions of national value systems that influence organizational and employee working relationships: power distance, uncertainty avoidance, individualism and collectivism, and masculinity/femininity. See Section 3.6: Sociocultural Challenges.)

Which of the following statements about the individualism approach to ethical decision making is true? Individualism fails to lead to behavior toward others that fits standards of behavior that people want toward themselves. Individualism is popular in the highly organized and group-oriented society of today. Individualism is easily misinterpreted to support immediate self-gain. Individualism contends that acts are moral when they promote the group's best long-term interests.

Individualism is easily misinterpreted to support immediate self-gain. (Because individualism is easily misinterpreted to support immediate self-gain, it is not popular in the highly organized and group-oriented society of today. See Section 4.3: Frameworks for Ethical Decision Making.)

Which of the following is an example of exporting? Microsoft Corporation and General Electric together formed Cardigm, a health IT company to improve patient experience and the economics of health and wellness through providing the health systems with required systemwide data and intelligence. Intel manufactures microprocessors that are shipped to other countries with the most sales going to Brazil, Taiwan, and China. The Dow Chemical Company and Corning, Inc., formed Dow Corning that produced sealants, adhesives, rubber for mold manufacturing, lubricants, release agents, and liquid silicone. Gap, Inc. uses low-cost Caribbean labor to cheaply produce its clothing, and then finishes off and sells its clothing in the United States.

Intel manufactures microprocessors that are shipped to other countries with the most sales going to Brazil, Taiwan, and China. (With exporting, the company maintains its production facilities within the home nation and transfers its products for sale in foreign countries. See Section 3.4: Getting Started Internationally.)

Which of the following statements about corporate cultures is true? Across all industries, organizations' cultural characteristics are the same. Internal corporate cultures are deeply influenced by the external environment. With few exceptions, corporate cultures always promote positive values and behaviors. The surface-level aspects of corporate cultures are the most important.

Internal corporate cultures are deeply influenced by the external environment. (A big influence on internal corporate culture is the external environment. Cultures can vary widely across organizations; however, organizations within the same industry often reveal similar cultural characteristics because they are operating in similar environments. See Section 2.4: Types of Culture.)

Which of the following would NOT be part of what defines corporate culture? The organization's visible artifacts Key values of organization members c Beliefs and understandings shared in the internal environment

International sales agreements with customers (Organizational culture can be defined as the set of key values, beliefs, understandings, and norms shared by members of an organization. See Section 2.3: The Internal Environment: Corporate Culture.)

Which of the following statements best describes the utilitarian approach as a guide for ethical decision making? It upholds the fundamental rights and liberties of each individual, which cannot be taken away by another person's decision. Individuals treat others as they themselves want to be treated, as per the Golden Rule. Individuals who are injured should be compensated for any costs arising from those injuries by the persons(s) responsible. It advocates moral behavior that produces the greatest good for the greatest number.

It advocates moral behavior that produces the greatest good for the greatest number. (The utilitarian approach, espoused by the nineteenth-century philosophers Jeremy Bentham and John Stuart Mill, holds that moral behavior produces the greatest good for the greatest number. Under this approach, a decision maker is expected to consider the effect of each decision alternative on all parties and select the one that optimizes the benefits for the greatest number of people. See Section 4.3: Frameworks for Ethical Decision Making.)

As a geocentric company, Avian Enterprises would have which of the following characteristics? Its world orientation is minimal. It is oriented toward markets of individual host countries. It emphasizes its home country in its operations. It does not favor a specific country.

It does not favor a specific country. (Geocentric companies are those companies that are truly world oriented and favor no specific country. The truly global companies that transcend national boundaries are growing in number. See Section 3.3: Multinational Corporations.)

Which of the following statements is NOT descriptive of business in the global world? It has resulted in people becoming increasingly disconnected from one another. It has become a unified field. It has made countries interdependent. It has become more competitive.

It has resulted in people becoming increasingly disconnected from one another. (Globalization refers to the extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries. See Section 3.1: A Borderless World.)

The strategic plan at Everett's company includes a move to become a multinational company. Which of the following would need to occur in order for it to be considered a multinational company? Direct investing would be the initial and primary market-entry strategy. The managers in each market would be responsible for strategic decisions, resource acquisition, and location of production, advertising, and marketing efficiency. Its workforce would come from the city where the headquarters is located. It is managed as an integrated worldwide business system.

It is managed as an integrated worldwide business system. (An MNC is managed as an integrated worldwide business system in which foreign affiliates act in close alliance and cooperation with one another. Capital, technology, and people are transferred among country affiliates. See Section 3.3: Multinational Corporations.)

Korean shipbuilder Samsung Heavy Industries announced a joint venture with the U.K.-based AMEC. It intended to specialize in offshore engineering in Houston, Texas. Which of the following would be true of this joint venture? It is the costliest method of direct investment. It is the most risky direct investment in which a company builds a subsidiary from scratch in a foreign country. It is often the fastest way of direct investment to get into the global game. It is the easiest and least risky form of licensing.

It is often the fastest way of direct investment to get into the global game. (The most popular type of direct investment is to engage in strategic alliances and partnerships. A partnership is often the fastest, cheapest, and least risky way to get into the global game. See Section 3.4: Getting Started Internationally.)

Which of the following statements would NOT be used to describe infrastructure? The elements of a country's infrastructure support its economic activities. Infrastructure is physical facilities such as highways, airports, and utilities. Infrastructure provides a gauge of a country's competitiveness. It is one of the tactics that managers use to enter foreign markets.

It is one of the tactics that managers use to enter foreign markets. (One important factor in gauging competitiveness is the country's infrastructure, that is, the physical facilities such as highways, airports, utilities, and telephone lines that support economic activities. Highly developed countries typically rank higher in the competitiveness index. See Section 3.5 Legal-Political Challenges.)

Which of the following would NOT be included among the characteristics of a multinational corporation? It typically receives more than 25 percent of its total sales revenues from operations outside the parent's home country. MNC managers maintain a global perspective for strategic decisions. An MNC is managed as an integrated worldwide business system in which foreign affiliates act in close alliance and cooperation with one another. It requires at least half of its total sales force to be expatriates—home-country nationals working in foreign countries.

It requires at least half of its total sales force to be expatriates—home-country nationals working in foreign countries. (In the business world, large international firms are typically called multinational corporations (MNCs), which have been the subject of enormous attention. An MNC usually does not set quotas for employee nationality. See Section 3.3: Multinational Corporations.)

Which of the following statements best describes the individualism approach as a guide for ethical decision making? It requires that different treatment of people not be based on arbitrary characteristics. It upholds the fundamental rights and liberties of each individual, which cannot be taken away by another person's decision. It sees acts as moral when they promote an individual's best long-term interests. It advocates moral behavior that produces the greatest good for the greatest number.

It sees acts as moral when they promote an individual's best long-term interests. (The individualism approach contends that acts are moral when they promote an individual's best long-term interests. In theory, with everyone pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest. See Section 4.3: Frameworks for Ethical Decision Making.)

As a definition for ethics, which of the following statements is true? It sets standards as to what is good or bad in conduct and decision making. It based almost entirely on religious beliefs. It is codified in the law, to be obeyed without question. It is based on feelings about what is right and wrong.

It sets standards as to what is good or bad in conduct and decision making. (Ethics is the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong. See Section 4.1: What Is Managerial Ethics?)

Which of the following countries possesses a low degree of assertiveness? United States Egypt Japan Spain

Japan (Among the value dimensions, low assertiveness means that people value tenderness and concern for others over being competitive. See Section 3.6: Sociocultural Challenges.)

At Home Healthcare has advertised for 10 positions. The human resources department is worried about being able to fill those positions because of a lack of qualified applicants. Which dimension of the external environment is involved here? Employees Legal/political Labor market Customer

Labor market (The labor market is part of the external environment and represents people in the environment who can be hired to work for the organization. See Section 2.1: The External Environment.)

Which of the following dimensions is a part of an organization's task environment? Economic Labor market Natural Management

Labor market (The labor market is part of the task environment and represents people who can be hired to work for the organization. See Section 2.1: The External Environment.)

Which of the following statements about managing international business matters is true? Strong ethnocentric attitudes within a country make it easier for foreign firms to operate there. Political and economic factors are generally far more perplexing than cultural factors when working or living in a foreign country. American managers are seldom accused of an ethnocentric attitude that assumes their way is the best way. Many managers fail to realize that the values and behaviors that typically govern how business is done in their own country don't always translate to the rest of the world.

Many managers fail to realize that the values and behaviors that typically govern how business is done in their own country don't always translate to the rest of the world. (Many managers fail to realize that the values and behaviors that typically govern how business is done in their own country don't always translate to the rest of the world. American managers in particular are regularly accused of an ethnocentric attitude. See Section 3.6: Sociocultural Challenges.)

Coffee is grown in Sumatra. Local traders buy this coffee that is then exported to Specialty Coffees Inc. Marcus, a manager at Specialty Coffees, determines the amount and purchases that amount of coffee for packaging and shipment to grocery chains in the United States. Which of the following statements best describes Marcus's role in this sequence? Marcus's tasks would be more easily accomplished with social media. Marcus is a proponent of scientific management. Marcus is involved in his company's supply chain management. Marcus's main responsibility is customer relationship management.

Marcus is involved in his company's supply chain management. (Supply chain management involves managing the sequence of suppliers and purchasers. In this case, Marcus is both a purchaser of raw materials and a supplier of a packaged good for retail sale. See Section 1.14: Managing the Technology-Driven Workplace.)

Companies that embrace sustainability measure performance outcomes at several different levels in a triple bottom line. Which of the following is NOT included in the triple bottom line? Financial performance Moral performance Environmental performance Social performance

Moral performance (The term triple bottom line refers to measuring an organization's social performance, its environmental performance, and its financial performance. See Section 4.5: What Is Corporate Social Responsibility?)

The headquarters of most international business firms are located in: Europe and East Asia. Brazil, Russia, India, and China (BRIC). North America and Europe. the United States, China, and Japan.

North America and Europe. (Most international business firms are headquartered in the wealthier, economically advanced countries. See Section 3.5 Legal-Political Challenges.)

Manager Z spends her time at the beginning of a project dividing work into manageable activities and selecting people to accomplish these tasks. This activity is part of which of a manager's five tasks? Developing people Setting objectives Organizing Motivating and communicating

Organizing (Developing people involves recognizing the value of individuals, whereas organizing involves dividing up and assigning work. See Section 1.2: The Basic Functions of Management.)

Which of the following statements about a global mind-set is true? A desire to avoid risk is an important part of the global mind-set. Building relationships of trust with people from other cultures requires a complete immersion into that culture. People who have exposure to different cultures develop a global mind-set more easily. Representing your company's national interests is a primary objective of a global mind-set.

People who have exposure to different cultures develop a global mind-set more easily. (Exposure to other cultures contributes to a global mind-set, as do diverse ways of thinking, willingness to take risks, mentally understanding how cultures differ, and the ability to interpret complex global changes. See Section 3.1: A Borderless World.)

The term triple bottom line is also known as the three P's. Which of the following correctly identifies the three P's? People, Product, and Profit People, Planet, and Profit Profit, People, and Personality Price, Product, and Payment

People, Planet, and Profit (The term triple bottom line refers to measuring an organization's social performance, its environmental performance, and its financial performance. This is sometimes called the three P's: People, Planet, and Profit. See Section 4.5: What Is Corporate Social Responsibility?)

The justice approach holds that moral decisions must be based on standards of equity, fairness, and impartiality. Which of the following is not among the three types of justice that are specifically of concern to managers? Procedural Personal Distributive Compensatory

Personal (Distributive justice requires that different treatment of individuals not be based on arbitrary characteristics; procedural justice holds that rules should be clearly stated and consistently and impartially enforced; and compensatory justice argues that individuals should be compensated for the cost of their injuries by the party responsible. See Section 4.3: Frameworks for Ethical Decision Making.)

Management theorist _____ is credited with creating the modern study of management. Mark Zuckerberg Mary Parker Follett Henry Mintzberg Peter Drucker

Peter Drucker (Peter Drucker contributed a great deal to the field of management theory. See Section 1.2: The Basic Functions of Management.)

Which of the following encompasses the four activities of effective management? Planning, organizing, leading, and controlling organizational resources Organizing, enabling, maintaining stability, and empowering Leading, controlling, mobilizing, and engaging competition Supervising, communicating, enabling, and collaborating

Planning, organizing, leading, and controlling organizational resources (Organizing, enabling, maintaining stability, and empowering are all activities within management, but the four main functions of management are planning, organizing, leading, and controlling organizational resources. See Section 1.1: Management Competencies for Today's World.)

Photos emerged of a college basketball coach partying and drinking alcohol with college co-ed students. Although not illegal, the situation is not considered acceptable by the community at large. The college administration fired the coach. Which approach to ethical decision making was at work here? Justice Individualism Utilitarian Practical

Practical (The practical approach sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account. See Section 4.3: Frameworks for Ethical Decision Making.)

_____ statements define fundamental values and reference organizational responsibilities, products, and employees. Disclosure Policy-based Principle-based Compliance

Principle-based (Principle-based statements are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees. See Section 4.7: Managing Company Ethics and Social Responsibility.)

Which of the following would NOT be considered a social media program? LinkedIn Print marketing Online company forums Intranets

Print marketing (Social media programs include company online community pages, social media sites such as Facebook or LinkedIn, microblogging platforms such as Twitter and China's Weibo, and company online forums. See Section 1.14: Managing the Technology-Driven Workplace.)

Which of the following is a key sociocultural factor in the international environment? Religion Regulations Terrorism Per capita income

Religion (Sociocultural factors in the international environment include social values and beliefs, language, religion, demographic profile, formal education, literacy, and time orientation. See Section 3.5: Legal-Political Challenges.)

Which of the following is among the top causes of managerial failure? Presenting a vision and strategy for your team Empowering your team Relying on reactionary behavior Having key technical skills

Relying on reactionary behavior (Empowering your team, presenting a clear vision, and having key technical skills all contribute to managerial success, whereas reactionary behavior does not. See Section 1.4: Management Skills.)

According to Mintzberg, which of the following is a function of a negotiator? Taking corrective actions during conflicts Representing team or department's interests Transmitting information to outsiders Deciding who gets resources

Representing team or department's needs (A disturbance handler takes corrective action during conflicts. The role of a negotiator is a decisional role. A negotiator represents the team or department interests during discussions of budgets, union contracts, and purchases. See Section 1.5: What Is a Manager's Job Really Like?)

Which of the following managerial roles would be more likely to be emphasized in a nonprofit organization than in a for-profit corporation? Figurehead Monitor Resource allocator Entrepreneur

Resource allocator (Managerial roles in nonprofits tend to focus more on spokesperson, leader, and resource allocator. See Section 1.6: Managing in Small Businesses and Nonprofit Organizations.)

Which of the following would NOT be considered a characteristic of an ethical dilemma? In a situation concerning right or wrong, values are in conflict. People hold divergent views about appropriate or inappropriate actions. Right and wrong can be clearly identified. The situation requires a decision.

Right and wrong can be clearly identified. (Being ethical is always about making decisions. An ethical dilemma arises in a situation concerning right or wrong when values are in conflict. Right and wrong cannot be clearly identified. See Section 4.2: Ethical Dilemmas: What Would You Do?)

_____ focuses on the productivity of the individual worker; the _____ approach focuses on the total organization. Administrative principles; humanistic Bureaucratic organizations approach; scientific management Scientific management; administrative principles Classical management; humanistic

Scientific management; administrative principles (Bureaucratic organizations manage on an impersonal, rational basis. Scientific management focuses on individual productivity; and the administrative principles approach encompasses the total organization. See Section 1.9: Classical Perspective.)

Which of the following would NOT be considered a visible artifact of a corporate culture? Shared understandings Office layout Organizational ceremonies Patterns of behavior

Shared understandings (The visible artifacts of corporate culture include things such as manner of dress, patterns of behavior, physical symbols, organizational ceremonies, and office layout. See Section 2.3: The Internal Environment: Corporate Culture.)

Because of changing technologies, the company for which Isabel works is experiencing a great deal of uncertainty. As a manager, what does that uncertainty mean for Isabel? She does not have to devote much attention to external issues. She has a great deal of additional data available from governmental sources to assist her in decision making. She must find ways to adapt the environment to her organization. She does not have sufficient information about environmental factors to understand and predict environmental needs and changes.

She does not have sufficient information about environmental factors to understand and predict environmental needs and changes. (Uncertainty means that managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes. See Section 2.2: The Organization-Environment Relationship.)

What is the top reason managers fail in their role? a. Inability to lead/motivate others. b. Ineffective communication skills and practices c. Poor planning practices/reactionary behavior d. Lack of personal integrity and trustworthiness

b. Ineffective communication skills and practices

Which of the following descriptions best explains what a stakeholder is? Stakeholders are those employees who offer their combined knowledge, experience, skills, and capabilities toward the organization. Stakeholders are groups or individuals committed to making moral decisions based on standards of equity, fairness, integrity, and impartiality under any circumstance. Stakeholders are a group or person inside or outside the organization who is invested or interested in the organization's performance and is affected by the organization's actions. Stakeholders form a loosely knit social framework in which individuals are expected to take care of themselves.

Stakeholders are a group or person inside or outside the organization who is invested or interested in the organization's performance and is affected by the organization's actions. (A stakeholder is any group or person within or outside an organization that has some type of investment or interest in the organization's performance and is affected by the organization's actions (employees, customers, shareholders, and so forth). Each stakeholder has a different criterion of responsiveness because it has a different interest in the organization. See Section 4.5: What Is Corporate Social Responsibility?)

Which of the following statements regarding strategic issues is NOT true? Managers use several business intelligence applications strategies to adapt to strategic issues. Strategic issues only occur inside an organization and are likely to alter its ability to achieve its objectives. Sometimes managerial conclusions about strategic issues are biased in favor of some natural inclination of the manager. As environmental turbulence increases, strategic issues emerge more frequently.

Strategic issues only occur inside an organization and are likely to alter its ability to achieve its objectives. (Strategic issues are events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives. See Section 2.2: The Organization-Environment Relationship.)

A basic supply chain model for a retail organization would include which sequence of members? Suppliers, distributors, traders, customers Suppliers, manufacturers, distributors, retailers Manufacturers, retailers, distributors, customers Distributors, manufacturers, retailers, customers

Suppliers, manufacturers, distributors, retailers (The basic supply chain model for a retail organization includes these members—suppliers, manufacturers, distributors, and retailers—in that order. See Section 1.14: Managing the Technology-Driven Workplace.)

Which of the following reasons best explains why managers are embracing the idea of sustainability? Sustainability lets managers sidestep debates about what is right and base their decisions on the larger society's prevailing standards. Sustainability offers a fool-proof way to maximize profits for the owners and shareholders of organizations. Sustainability provides a way to achieve financial goals in a manner that is socially and environmentally responsible. Sustainability provides the powerful force of moral value that helps regulate organizational behaviors.

Sustainability provides a way to achieve financial goals in a manner that is socially and environmentally responsible. (With a philosophy of sustainability, managers weave environmental and social concerns into every strategic decision so that financial goals are achieved in a way that is socially and environmentally responsible. See Section 4.5: What Is Corporate Social Responsibility?)

The Global Competiveness Report considers both hard data and perceptions of business leaders as well as government policies, institutions, market size, the sophistication of financial markets, and other factors that drive productivity and thus enable sustained economic growth. Which of the following countries is ranked in the top five according to the World Economic Forum? Canada Brazil Japan Switzerland

Switzerland (The five highest-ranking countries on the Global Competitiveness Report are Switzerland, Singapore, Sweden, Finland, and the United States. See Section 3.5 Legal-Political Challenges.)

Which of the following would NOT be considered an economic factor to be considered in decisions about international business? Tariffs, quotas, and taxes Inflation and interest rates Resources and product markets A country's economic development

Tariffs, quotas, and taxes (Economic factors in the international environment include exchange rates, economic development, infrastructure, resources and product markets, per capita income, and economic conditions. See Section 3.5 Legal-Political Challenges.)

According to the 2013 KOF Index of Globalization, which of the following countries is NOT one of the 10 most globalized countries in the world? The Netherlands Singapore The United States Belgium

The United States (The United States ranks 34th on the KOF Index. See Section 3.1: A Borderless World.)

The right fit between culture, strategy, and the environment is associated with four categories or types of culture. On what two dimensions are these categories based? The goals of the organization and the turbulence of the environment The extent to which the competition is adversarial and the pace of the marketing timeline The amount of flexibility required by the external environment and whether a company's strategic focus is internal or external The extent of the visible corporate culture and the influence of the invisible culture

The amount of flexibility required by the external environment and whether a company's strategic focus is internal or external (The right fit between culture, strategy, and the environment depends on (1) the extent to which the external environment requires flexibility or stability and (2) the extent to which a company's strategic focus is internal or external. See Section 2.4: Types of Culture.)

Which of the following statements best summarizes the relationship between ethics and law and free choice? Free choice can be unethical but not illegal; codified laws govern behavior that cannot be unethical or illegal. If an action is unethical, it is both contrary to codified laws and free choice. The domain of ethics is found between codified law and free choice, because even though written laws do not bind ethics, standards of conduct based upon shared principles and values still exist. Being ethical is much closer to acting with free choice than to acting based on codified laws.

The domain of ethics is found between codified law and free choice, because even though written laws do not bind ethics, standards of conduct based upon shared principles and values still exist. (Between the domains of free choice and codified laws lies the area of ethics. This domain has no specific laws, yet it does have standards of conduct based on shared principles and values about moral conduct that guide an individual or company. See Section 4.1: What Is Managerial Ethics?)

Which of the following would NOT be critical for managers to consider when establishing the cultural values that are important for the organization? The company's goals The external environment The company's financial resources The company's strategies

The company's financial resources (In considering what cultural values are important for the organization, managers consider the external environment, as well as the company's strategies and goals. See Section 2.4: Types of Culture.)

_____ is considered the "father of the quality movement," and his ideas form the basis of total quality management. W. Edwards Deming Abraham Maslow Peter Drucker Peter Senge

W. Edwards Deming (Deming's ideas were initially embraced in Japan following World War II in organizations' efforts to rebuild their industries. See Section 1.12: Recent Historical Trends.)

Which of the following would NOT be considered an advantageous characteristic of a wholly owned subsidiary? Shortening distribution channels reduces storage and transportation costs. Local managers have a better understanding of economic, cultural, and political conditions. Direct acquisition of an affiliate may provide cost savings over exporting. The foreign subsidiary has complete control of its operations.

The foreign subsidiary has complete control of its operations. (A wholly owned foreign affiliate is a foreign subsidiary over which an organization has complete control. See Section 3.4: Getting Started Internationally.)

Which of the following statements about the practical approach to ethical decision making is true? The practical approach bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account. The practical approach focuses primarily on debates about what is right, good, or just. Because ethical issues are most frequently clear-cut, the practical approach is the most effective. The only question a manager using the practical approach needs to answer in making a decision is "What decision would lead to the greatest good for the greatest number?"

The practical approach bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account. (The practical approach sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account. See Section 4.3: Frameworks for Ethical Decision Making.)

Which of the following best describes a corporation's ethical responsibility? To make decisions that enable it to gain at the expense of society as a whole To operate on a profit-oriented basis, with its sole mission being to increase its profits To fulfill economic goals within the framework of legal requirements To act with fairness and impartiality, respecting the rights of individuals

To act with fairness and impartiality, respecting the rights of individuals (In the context of the criteria of corporate social responsibility, ethical responsibility includes behaviors that are not necessarily codified into law and may not serve a corporation's direct economic interests. To be ethical, organization decision makers should act with equity, fairness, and impartiality, respect the rights of individuals, and provide different treatment of individuals only when relevant to the organization's goals and tasks. See Section 4.6: What Is Corporate Social Responsibility?)

Which of the following assumptions would NOT be associated with McGregor's Theory X? The use of imagination and creativity in solving problems is widely distributed in the population. Individuals inherently dislike work and try to avoid it. The typical individual prefers to be told what to do. Most individuals must be coerced before they will put forth adequate effort to achieve objectives.

The use of imagination and creativity in solving problems is widely distributed in the population. (Theory X is based on the classical perspective of management. Theory Y, which emphasizes individuals' capability and their desire to be productive, is a humanistic perspective. See Section 1.10: Humanistic Perspective.)

Which of the following methods would NOT be included among the techniques of operations management? Linear programming Forecasting Theory Y assumptions Simulation

Theory Y assumptions (Theory Y assumptions are based on the imagination and intellect of workers, while management science address the quantitative aspects of management. See Section 1.11: Management Science.)

At Glass Industries, the manager engages workers in committing to mutually agreed-upon goals and encourages their creativity in meeting those goals. This manager is a proponent of: administrative principles approach. Theory Y management. contingency view management. scientific management.

Theory Y management. (According to Theory Y, under the right circumstances people will both accept and seek responsibility. See Section 1.10: Humanistic Perspective.)

Which of the following is a characteristic of developed countries? Few international business firms are headquartered in these countries. They generally rank low on the competitiveness scale. They are generally located in North America and Europe. They have low per capita incomes.

They are generally located in North America and Europe. (Developed countries are generally located in North America, Europe, and Japan. See Section 3.5 Legal-Political Challenges.)

In a discussion of the attributes of strong corporate cultures, which of the following statements is true? They do not significantly affect the competitive advantage of organizations. They are a part of an organization's external environment. They sometimes promote negative values and behaviors. Their visible artifacts readily indicate whether top leaders are unethical.

They sometimes promote negative values and behaviors. (Although strong corporate cultures are important, they can also sometimes promote negative values and behaviors. When the actions of top leaders are unethical, for instance, the entire culture can become contaminated. See Section 2.3: The Internal Environment: Corporate Culture.)

_____ has a low performance orientation, paying less attention to performance and more attention to loyalty. Israel Venezuela Taiwan The United States

Venezuela (A low performance orientation means that people pay less attention to performance and more attention to loyalty, belonging, and background. See Section 3.6: Sociocultural Challenges.)

______ is a category of human behavior in which values and standards are written into the legal system and are enforceable in the courts. a. Free choice b. Codified law c. Ethics d. Norms

b. Codified law

Which of the following best describes a corporation's legal responsibility? To conduct itself in ways that society deems important with respect to appropriate corporate behavior To produce the goods and services that society wants and to maximize profits for its owners and shareholders To make social contributions not mandated by economics, law, or ethics To pursue positive human impact, moral goodness, and unconditional society betterment for its own sake

To conduct itself in ways that society deems important with respect to appropriate corporate behavior (In the context of the four criteria of corporate social performance, legal responsibility defines what society deems as important with respect to appropriate corporate behavior. That is, businesses are expected to fulfill their economic goals within the framework of legal requirements imposed by local town councils, state legislators, and federal regulatory agencies. See Section 4.6: What Is Corporate Social Responsibility?)

Which of the following best describes a corporation's discretionary responsibility? To operate on a profit-oriented basis, with its sole mission being to increase its profits To go beyond societal expectations to contribute to a community's welfare To make decisions that enable it to gain at the expense of society as a whole To fulfill economic goals within the framework of legal requirements

To go beyond societal expectations to contribute to a community's welfare (In the context of the criteria of corporate social responsibility, discretionary responsibility is the highest criterion of social responsibility because it goes beyond societal expectations to contribute to a community's welfare. It is purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics. See Section 4.6: What Is Corporate Social Responsibility?)

Which of the following best describes a corporation's economic responsibility? To fulfill its economic goals within the framework of legal requirements To produce the goods and services that society wants and to maximize profits for its owners and shareholders To contribute to its country's gross domestic product To pursues positive human impact, moral goodness, and unconditional society betterment for its own sake

To produce the goods and services that society wants and to maximize profits for its owners and shareholders (One of the four criteria of social responsibility is economic responsibility. The business institution is, above all, the basic economic unit of society. Its responsibility is to produce the goods and services that society wants and to maximize profits for its owners and shareholders. See Section 4.6: What Is Corporate Social Responsibility?)

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with employees? Breaching database controls Accepting favors or kickbacks Falsifying sensitive data concerning product quality Tolerating a work environment that includes harassment

Tolerating a work environment that includes harassment (There are various ways in which organizations sometimes behave unethically toward customers, employees, and other stakeholders. Discriminating against employees, creating a hostile work environment, and violating health and safety rules are some of the ways in which an organization behaves unethically with employees. See Section 4.1: What Is Managerial Ethics?)

The Archer Daniels Midland (ADM) Company is an American global food processing and commodities trading corporation. Which of the following would NOT be part of ADM's task environment? Agritech Worldwide, which is also a food processor Coca-Cola, which buys ADM products Agco Corporation, which sells agricultural equipment USDA, which provides oversight to the food-processing industry

USDA, which provides oversight to the food-processing industry (The U.S. Department of Agriculture is a part of the legal/political dimension of ADM's general environment. See Section 2.1: The External Environment.)

A dispute about a production process between two employees has escalated to a crisis level. If Manager Z is to be effective in resolving this dispute, which of the following skills will be most critical? Using communication skills well Clarifying performance expectations Micromanaging the situation Drawing on technical expertise

Using communication skills well (Especially in times of crisis or uncertainty, if managers do not communicate effectively, organizational performance and reputation suffer. See Section 1.4: Management Skills.)

Organizations may behave unethically in a number of ways. Which of the following describes unethical behavior in dealing with customers? Accepting favors or kickbacks Using false or deceptive sales techniques Tolerating a work environment that includes harassment Failing to keep accurate records or invoices

Using false or deceptive sales techniques (There are various ways in which organizations sometimes behave unethically toward customers, employees, and other stakeholders. False or deceptive sales practices, submitting misleading invoices, and fabricating product quality data are some of the ways in which organizations behave unethically with customers. See Section 4.1: What Is Managerial Ethics?)

One expert on business ethics suggests that managers can ask themselves the following five questions to help resolve ethical dilemmas. Which of the following questions is NOT included among those five? What can I realistically get away with? What rules, policies, or social norms apply? What's in it for me? What will be the long-term impact for myself and important stakeholders?

What can I realistically get away with? (The five questions to ask when resolving an ethical dilemma: What's in it for me? What decision would lead to the greatest good for the greatest number? What rules, policies, or social norms apply? What are my obligations to others? What will be the long-term impact for myself and important stakeholders? See Section 4.3: Frameworks for Ethical Decision Making.)

Which of the following would NOT be among the characteristics of an effective cultural leader? The leader makes sure that work procedures and reward systems match and reinforce the values. When the culture needs to change, cultural leaders wait for employees to reinforce the new values. The leader defines and communicates central values that employees believe in and will rally around. Cultural leaders also uphold their commitment to values during difficult times or crises.

When the culture needs to change, cultural leaders wait for employees to reinforce the new values. (Cultural leaders define and articulate important values that are tied to a clear and compelling mission, which they communicate widely and uphold through their actions. See Section 2.5: Shaping Corporate Culture for Innovative Response.)

Which of the following scenarios involves an ethical dilemma? You and another manager are overseeing a large project. You have to sign off on a report that contains data you know the other manager did not verify. You see a coworker loading company computer components in his car. The next day, your boss asks you what you saw. A supplier violated the terms of a contract by shipping a lower grade of product than your company agreed to purchase. Your law firm has three associate lawyers, you and two others. The associate who occupied a corner office took a job in another city. When the partner offers the office to you, you decline, so the third associate moves into it.

You and another manager are overseeing a large project. You have to sign off on a report that contains data you know the other manager did not verify. (This scenario involves a free choice issue. In the two-manager scenario, giving your approval to a report you know contains inaccurate data blurs the line between right and wrong, creating an ethical dilemma. See Section 4.2: Ethical Dilemmas: What Would You Do?)

Studies typically find _____ between a company's social responsibility and its financial performance. a negative relationship little or no correlation a conflict of interest a positive relationship

a positive relationship (Studies have provided varying results, but they have generally found a positive relationship between ethical and socially responsible behavior and a firm's financial performance. See Section 4.1: What Is Managerial Ethics?)

The phrase to "design the rules of the game without specifying the actions of the players" refers to what type of manager? a. Enablers b. Keeping tabs c. Controllers d. Individuals over teams

a. Enablers

_____ is defined as the risk of loss of assets, earning power, or managerial control due to actions by host governments. a. Political risk b. Commodity risk c. Concentration risk d. Equity risk

a. Political risk

The hotel chain Ritz-Carlton uses the phrase "Ladies and gentlemen taking care of ladies and gentlemen" to demonstrate the company's cultural commitment to take care of both employees and customers. Which of the following is the Ritz-Carlton using to express its corporate culture? a. The company is expressing a key corporate value with a slogan. b. The company is using a monograph to convey its strong values. c. The company is conveying how valuable its employees are with a blurb. d. The company is using a foreword to demonstrate its values.

a. The company is expressing a key corporate value with a slogan.

A cultural leader articulates a vision for the organizational culture that employees can believe in. a. True b. False

a. True

Brazil's economic growth slowed over the past few years, but it is still one of the fastest-growing emerging economies in the world. a. True b. False

a. True

Companies that succeed in a turbulent world are those in which managers are evaluated and rewarded for paying attention to both cultural values and business performance. a. True b. False

a. True

One result of globalization is that countries, businesses, and people become increasingly interdependent. a. True b. False

a. True

In the context of the perspectives on management, the _____ is a subfield of the classical perspective that focuses on the total organization rather than the individual worker and delineates the management functions of planning, organizing, commanding, coordinating, and controlling. a. administrative principles approach b. behavioral sciences approach c. human resources perspective d. humanistic perspective

a. administrative principles approach

The _______ is a set of key values, beliefs, understandings, and norms shared by the employees of an organization. a. organizational culture b. organizational effectiveness c. organizational attractiveness d. organizational design

a. organizational culture

The _______ includes all elements existing outside the boundary of the organization that have the potential to affect it. a. organizational environment b. task environment c. general environment d. internal environment

a. organizational environment

At the preconventional level of moral development, individuals are guided by an internal set of values based on universal principles of justice. a. True b. False

b. False

The team members of the technical team in Wescrult Inc. are working on a crucial project. Their manager, Wendy, is thinking about her team and deciding what tasks have to be done next week, and which tasks to give to which employees. Their previous manager assigned responsibilities to each of them and directed them on how to accomplish these tasks. Their previous manager was most likely _______. a. organizing b. planning c. controlling d. leading

a. organizing

A lifeguard in Florida was fired for leaving his assigned zone because he opted to help a drowning man, even though his supervisor had ordered him not to leave his zone and to call 911 for help instead. The actions of the lifeguard were motivated by his internal values. In the given scenario, the lifeguard is at the _____ of moral development. a. postconventional level b. conventional level c. preconventional level d. self-interest level

a. postconventional level

Trux Inc. is a Wisconsin-based manufacturer of engineered wood building products such as beams and panels. They source wood from a local supplier and ships products to customers all over the United States. In the given scenario, the local supplier is a(n) _____ of Trux. a. stakeholder b. ombudsman c. seed investor d. boomerang employee

a. stakeholder

Hannah is an HR specialist at an investment firm, and she is responsible for conflict management. She believes that conflicts should be resolved in a way that is beneficial to all involved. Therefore, when a conflict arose between the heads of the finance department and the legal department over the shared use of an employee, she came up with a schedule that allowed both the departments to use the expertise of the employee without hindering each other's schedules. In the context of the various ethical decision-making approaches, Hannah's beliefs and actions are consistent with those asserted by the ___. a. utilitarian approach b. individualism approach c. moral-rights approach d. virtue ethics approach

a. utilitarian approach

Henry & David Inc. is a law firm in the United States. Recently, a female employee of the firm filed a sexual harassment complaint against her supervisor. To maintain the firm's internal and external reputation, the CEO of the firm directed the HR manager to turn a deaf ear to the complaint and suppress any rumors related to it. However, Seth, an employee at the firm, discovered this and reported the actions of the CEO to the concerned authorities. In this scenario, Seth is a(n) ____. a. whistle-blower b. ethical ombudsman c. boomerang employee d. headhunter

a. whistle-blower

In fulfilling his main responsibility to the organization he works for, Manager A works to: select goals for the organization. monitor production activities and make needed corrections. access raw materials. achieve high performance.

achieve high performance. (The ultimate responsibility of managers is to achieve high performance, which is the attainment of organizational goals by using resources in an efficient and effective manner. See Section 1.3: Organizational Performance.)

When a customer needs a special order, Noreen, who manages the production line, has the authority to alter the production line to fulfill that order. Her company has a(n) _____ culture. involvement adaptability consistency achievement

adaptability (In an adaptability culture, employees have the autonomy to make decisions and act freely to meet new needs, and responsiveness to customers is highly valued. Managers also actively create change by encouraging and rewarding creativity, experimentation, and risk taking. See Section 2.4: Types of Culture.)

Managers who follow ethical leadership: take actions that will contribute to the interests of their organization, but not the society. support the idea that their corporation's sole mission is to maximize profits. make decisions that enable the company to gain at the expense of society. are fair in their dealings with employees and customers.

are fair in their dealings with employees and customers. (One of the most important steps managers can take is to practice ethical leadership. Ethical leadership means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional life. See Section 4.7: Managing Company Ethics and Social Responsibility.)

At the postconventional level of moral development, individuals: obey authority to avoid detrimental personal consequences. are guided by an internal set of values based on universal principles of justice and right. value personal values more than others' expectations. conform to the expectations of good behavior.

are guided by an internal set of values based on universal principles of justice and right. (At the postconventional, or principled level, individuals are guided by an internal set of values based on universal principles of justice and right and will even disobey rules or laws that violate these principles. Internal values become more important than the expectations of significant others. See Section 4.4: The Individual Manager and Ethical Choices.)

The concept of synergy says that the whole is equal to the sum of its parts. a. True b. False

b. False

Starbucks expanded into the European market with packed stores in Germany and the United Kingdom, but its sales and profits in its French stores were disappointing. Some of the reasons for this were a sluggish economy, more expensive rent, and higher labor costs in France; furthermore, Starbucks did not adapt to the café culture of France. Identify a reason that most likely affected Starbucks's ability to thrive in France. a. Starbucks did not factor in the homogeneity among its markets across the globe. b. Starbucks did not factor in the international dimension of its external environment. c. Starbucks did not use the triple bottom line to measure its performance in France. d. Starbucks did not look at the technological dimension that would affect the French society.

b. Starbucks did not factor in the international dimension of its external environment.

Rachel is the managing director of LivviPro Inc., a life insurance agency. She believes in using various disciplines such as sociology, psychology, anthropology, and economics to understand the employees in the organization. The agency uses employee profiles in its hiring process. This practice is most consistent with the _____. a. administrative principles approach b. behavioral sciences approach c. conflict perspective d. quantitative perspective

b. behavioral sciences approach

The study of modern management began in the late nineteenth century with the _______ and is centered around scientific management, bureaucratic organizations, administrative principles, and management science. a. conflict perspective b. classical perspective c. humanistic perspective d. behaviorist perspective

b. classical perspective

Benjamin has accepted a management position overseas in Japan. He is excited about this opportunity and has been learning about Japanese culture and how his current environment will change. In the context of the dimensions of a global mind-set, Benjamin is most likely using the _____. a. social dimension b. cognitive dimension c. informational dimension d. psychological dimension

b. cognitive dimension

In an organization, _____ pertains to the degree to which the organization achieves a stated goal or succeeds in accomplishing what it tries to do. a. quality b. effectiveness c. efficiency d. feasibility

b. effectiveness

The management of Axil Inc., an investment firm, believes in providing the best facilities to its employees. It decides to provide the employees with expensive Colombian coffee and free lunch. In the context of human action, the firm's decisions and beliefs pertain to the domain of _____. a. ethical responsibility b. free choice c. codified law d. compensatory justice

b. free choice

Ropalique is a popular clothing brand in the country Wesabania. The company wants to expand its market and decides to establish itself in the country Tristonville. To accomplish this, Ropalique collaborates with a local clothing brand called Vestinx in Tristonville and provides resources and trademark rights to Vestinx. This enables Vestinx to produce and market Ropalique's products. In the context of strategies for entering the international arena, Ropalique is most likely using _____. a. global outsourcing b. joint ventures c. direct investing d. exporting

b. joint ventures

In a _____, people use communication primarily to exchange facts and information. a. collectivistic b. low-context culture c. feminine culture d. high-context culture

b. low-context culture

Sergio, the manager of a software firm, has a new project for his team. He is preparing a set of targets and making decisions on how to attain these targets before assigning the tasks to his team members. In the context of the functions of management, Sergio is most likely _____. a. controlling b. planning c. organizing d. leading

b. planning

Delwazic Inc. is a multinational corporation (MNC) that creates products specialized for a few host countries. It manufactures berets in France, cowboy hats in the United States, bowlers in the United Kingdom, and bush hats in Australia. In this scenario, Delwazic Inc. is most likely a(n) _____. a. ethnocentric company b. polycentric company c. regiocentric company d. geocentric company

b. polycentric company

The people in the country Bleusville focus on the past and the present rather than on the future. In Bleusville, tradition and social obligation are considered important. This scenario best illustrates a(n) _____. a. low-context culture b. short-term orientation c. individualistic culture d. long-term orientation

b. short-term orientation

In the context of the different types of corporate culture, the achievement culture is different from the other types in that it mainly: a. supports a methodical, rational, and orderly way of conducting business. b. values competitiveness and willingness to work long and hard to attain results. c. places a high value on meeting the needs of employees. d. emerges in an environment that requires fast response and high-risk decision making.

b. values competitiveness and willingness to work long and hard to attain results.

The _____ approach draws on methods and theories from sociology, psychology, anthropology, and economics to explain human behavior and interaction in organizational settings. total quality management behavioral sciences systems thinking bureaucratic organizations

behavioral sciences (Organizational development is one example of management techniques that came out of a behavioral sciences approach. See Section 1.10: Humanistic Perspective.)

As the fastest-growing segment of business intelligence, _____ refers to searching complex sets of data to uncover patterns in order to make better business decisions. environmental uncertainty joint venture big data analytics scenario building

big data analytics (The fastest-growing segment of business intelligence is big data analytics, which refers to searching and examining massive, complex sets of data to uncover hidden patterns and correlations and make better decisions. See Section 2.2: The Organization-Environment Relationship.)

As a manager, Carmen frequently uses a(n) _____ role as a strategy for her organization to link to and coordinate with key elements in the external environment. boundary spanning merger interorganizational partnership scenario-building

boundary spanning (Boundary spanning roles link to and coordinate an organization with key elements in the external environment. Boundary spanners serve two purposes for the organization: they detect and process information about changes in the environment, and they represent the organization's interests to the environment. See Section 2.2: The Organization-Environment Relationship.)

In the context of the types of corporate culture, which of the following scenarios illustrates the adaptability culture? a. The managers at Jelly Legs Entertainment focus on meeting the needs of the company's employees and on creating a caring, family-like atmosphere in the organization. b. Canton Inc. operates in a stable environment and has a culture that values competitiveness, personal initiative, and willingness to work long hours to achieve results. c. Employees at Bilton Associates have to be flexible and responsive in meeting the changing consumer needs and have the liberty to make decisions. d. Hoover Mechanics operates in a stable environment and has a culture that supports a methodical, rational, and orderly way of doing things.

c. Employees at Bilton Associates have to be flexible and responsive in meeting the changing consumer needs and have the liberty to make decisions.

Which of the following firms has a high-performance culture? a. Pinot Inc., a product manufacturing firm that focuses on creating a strong culture but does not tie cultural values to performance goals b. Finch & Tyler, a law firm that focuses on meeting its performance goals but pays little attention to cultural values c. Gwen Tech, a marketing firm that emphasizes both culture and performance by aligning corporate values with its day-to-day operations d. Rexot Bron Inc., a start-up firm that neither focuses on achieving business results nor focuses on building a strong cohesive culture

c. Gwen Tech, a marketing firm that emphasizes both culture and performance by aligning corporate values with its day-to-day operations

_______ culture uses an internal focus for a stable environment and supports a rational and orderly way of doing business. a. The adaptability b. The involvement c. The consistency d. The achievement

c. The consistency

The _____ tells managers that what works in one organizational situation might not work in others. a. humanistic perspective b. classical perspective c. contingency view d. universalist view

c. contingency view

Somebody who has extensive experience interacting with people different from themselves is an example of a(n) _______. a. uniform thinker b. cognitive leader c. global leader d. consistent leader

c. global leader

A manager with a ______ can perceive and respond to many different perspectives at the same time. a. psychological mind-set b. avoidant mind-set c. global mind-set d. domestic mind-set

c. global mind-set

Arron, the CEO of a multinational corporation, believes that effective control in an organization comes from each employee's internal motivation rather than from authoritarian control from the top levels of management. In this scenario, Arron's beliefs are most consistent with the _____. a. bureaucratic organizations approach b. administrative principles approach c. human relations movement d. conflict perspective

c. human relations movement

In the context of the approaches that help managers in ethical decision making, the _____ sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account. a. individualism approach b. justice approach c. practical approach d. moral-rights approach

c. practical approach

The _____ provided a way to address the massive and complicated problems associated with modern global warfare that presented managerial decision makers with the need for sophisticated tools. a. humanistic perspective b. conflict perspective c. quantitative perspective d. classical perspective

c. quantitative perspective

A narrative based on true events that is repeated frequently and shared among organizational employees is called a ______. a. folkway b. norm c. story d. statute

c. story

Werkley Inc. is a product manufacturing company. It relies on its suppliers for raw materials, on the labor market for its personnel needs, and on its customers for profits. In the given scenario, the suppliers, the labor market, and the customers make up the _____ of Werkley Inc. a. general environment b. macro environment c. task environment d. internal environment

c. task environment

In order to succeed in a turbulent environment, companies need to: carefully monitor both cultural values and business performance. adapt to the task environment rather than the general environment. focus entirely on customer requirements. focus more on internal environment issues than on the external environment.

carefully monitor both cultural values and business performance. (Companies that succeed in a turbulent world are those that pay careful attention to both cultural values and business performance. Cultural values can energize and motivate employees by appealing to higher ideals and unifying people around shared goals. See Section 2.5: Shaping Corporate Culture for Innovative Response.)

The formal statement that communicates what the company stands for and includes the company's values concerning ethics and social issues is known as its: code of ethics. mission statement. public disclosure statement. conflict of issues statement.

code of ethics. (A code of ethics is a formal statement of a company's values concerning ethics and social issues; it communicates to employees what the company stands for. See Section 4.7: Managing Company Ethics and Social Responsibility.)

When it comes to human behavior, the values and standards that are written into the legal system and enforceable in the courts fall within the domain of: ethics. free choice. codified law. a social dilemma.

codified law. (Human behavior falls into three categories. One of the domains is codified law, in which values and standards are written into the legal system and enforceable in the courts. See Section 4.1: What Is Managerial Ethics?)

Brazil is known for its tightly knit social framework. There, individuals look after one another and organizations protect their members' interests. Its values are: collectivistic. ethnocentric. futuristic. individualistic.

collectivistic. (Countries with collectivist values—a preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests—include China, Mexico, and Brazil. See Section 3.6: Sociocultural Challenges.)

GlaxoSmithKline, Merck, and Pfizer are all pharmaceutical companies, which makes them part of the _____ dimension within Pfizer's task environment. management customers competitors suppliers

competitors (The task environment includes those sectors that have a direct working relationship with the organization. Organizations in the same industry or type of business that provide goods or services to the same set of customers are referred to as competitors. See Section 2.1: The External Environment.)

A(n) _____ culture has an internal strategic focus and an environment that requires stability. involvement achievement consistency adaptability

consistency (The consistency culture uses an internal focus and a consistency orientation for a stable environment. See Section 2.4: Types of Culture.)

In rapidly changing environments, managers shift away from the _____ culture, which supports and rewards a methodical, rational, and orderly way of doing things, and move toward a(n) _____ culture. involvement; achievement adaptability; involvement achievement; consistency consistency; adaptability

consistency; adaptability (The consistency culture uses an internal focus and a consistency orientation for a stable environment. Most managers are shifting toward cultures that are more flexible and in tune with changes in the environment. See Section 2.4: Types of Culture.)

General statements of principle that define fundamental values and contain general language about company responsibilities are often called: mission statements. organization virtuousness. corporate credos. moral codes.

corporate credos. (Principle-based statements are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees. General statements of principle are often called corporate credos. See Section 4.7: Managing Company Ethics and Social Responsibility.)

Jess works as a department manager in her organization. She has excellent role models in the upper management, and she tries to extend the same type of mentoring and support to the front-line managers she supervises. By doing so, she is reinforcing the organization's: labor market dimension of the task environment. sociocultural dimension of the general environment. natural dimension of the task environment. culture dimension of the internal environment.

culture dimension of the internal environment. (A major part of the organization's internal environment is its corporate culture, which is both shaped by the external environment and shapes how managers respond to changes in the external environment. See Section 2.1: The External Environment.)

Examine the following companies and their decisions. Which of them is most likely to have faced an ethical dilemma during the decision-making process? a. A company that wants to enhance its positive public image and, hence, pledges 30% of its annual sales profits to a cancer foundation b. A company that has surplus production of wheat and, hence, exports it to other countries c. A company that makes significantly high profits in a particular quarter and, hence, rewards each employee with a $200 gift voucher d. A company that wants to lower its costs and, hence, outsources its production to a foreign company that uses child labor

d. A company that wants to lower its costs and, hence, outsources its production to a foreign company that uses child labor

Which of the following involves monitoring activities and making corrections? a. Leading b. Planning c. Organizing d. Controlling

d. Controlling

_______ refers to the natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values. a. Collectivism b. Individualism c. Uncertainty Avoidance d. Ethnocentrism

d. Ethnocentrism

Which of the following is one of the three necessary skills for managing a department or an organization? a. Motivational skills b. Marketable skills c. Commercial skills d. Human skills

d. Human skills

Which of the following statements is true of the North American Free Trade Agreement (NAFTA)? a. It reduced income. b. It intended to reduce exports. c. It increased trade tariffs. d. It intended to spur investment.

d. It intended to spur investment.

After several years with the publishing house that Jessica started at after college, she has been promoted to manager of the fiction team. In her new role, Jessica is open to new ideas and bucks company trends and sometimes policy to create a welcoming environment for both the employees and the writers who work with the publishing house. While this approach was frowned upon at first, the results she achieved in such a short period of time put her on the map as somebody to watch. Jessica is demonstrating what stage of moral development? a. Conventional level b. Preconventional level c. Rule-oriented d. Principled level

d. Principled level

Which of these is an example of "serving the bottom of the pyramid"? a. Car-a-Go-Go Inc. is an MNC that specializes in luxury cars. To penetrate into new markets, they offered incentives to wealthy citizens of other countries to buy their vehicles and expand their footprint. b. Righteous Burgers is a fast food organization that is opening stores all over the world with their big expansion push. They have meticulously studied the countries where they will open new restaurants and have catered to the culture of each country individually to assist in brand recognition and sales. c. HappyTime Silicon provides much needed silicon to the technology industry. They are continually finding new sources of silicon and expanding their business globally. d. Radical Computer Corp. is a multinational computer company that acquires resources from all over the world. They found that in many of the countries they get their materials, the citizens have little to no internet access and cannot afford computers. They decided to build highly affordable computers and install a wireless infrastructure to assist the poorest in these countries in getting online.

d. Radical Computer Corp. is a multinational computer company that acquires resources from all over the world. They found that in many of the countries they get their materials, the citizens have little to no internet access and cannot afford computers. They decided to build highly affordable computers and install a wireless infrastructure to assist the poorest in these countries in getting online.

If managers are talking about the performance aspects of People, Planet, and Profit, they are most likely discussing what? a. Conscious capitalism b. Greenwashing c. Stakeholder mapping d. The triple bottom line

d. The triple bottom line

Which of the following is a difference between principle-based statements and policy-based statements? a. Unlike principle-based statements, policy-based statements define the fundamental values of a company. b. Unlike principle-based statements, policy-based statements are a type of codes of ethics. c. Unlike principle-based statements, policy-based statements contain general language about company responsibilities, quality of products, and treatment of employees. d. Unlike principle-based statements, policy-based statements generally outline the procedures to be used in specific ethical situations.

d. Unlike principle-based statements, policy-based statements generally outline the procedures to be used in specific ethical situations.

The management at Joy, a local jewelry store in London, has hired a comparison shopper to visit other local jewelry stores to gain product pricing information. This scenario most likely illustrates the concept of _____. a. threaded marketing b. market basket analysis c. urban informatics d. competitive intelligence

d. competitive intelligence

Mike, a manager at a graphic design firm, spends his time initiating improvement projects, identifying new ideas, and delegating idea responsibility to others. Mike is most likely a(n) _______. a. resource allocator b. negotiator c. disturbance handler d. entrepreneur

d. entrepreneur

In an example of _______, Vladimir is a manager at Auttowort Inc., an automotive plant in the United States. Auttowort has started expanding to other countries and is now sourcing 25 percent of its parts at a discounted rate from an automotive supplier in Brazil. It has also outsourced some of its operations to India. a. competitive advantage. b. outplacement. c. fiduciary responsibility. d. globalization.

d. globalization

In the country Blestonia, people value relationships over business. They use communication as a means of building social relationships rather than to merely exchange information. Given this information, it can be concluded that Blestonia has a _____. a. uncertainty avoidance culture feminine culture b. masculine culture c. low-context culture d. high-context culture

d. high-context culture

Devon owns a real estate company. He is aware of a decline in the housing market and realizes the need to encourage the realtors working for him to adapt to this change in the company's external environment. Devon decides to hold bimonthly meetings with all his employees to discuss their concerns and ideas, thereby showing how highly he values meeting his employees' needs and creating a family-like atmosphere. In the given scenario, Devon is using the _____. a. adaptability culture b. consistency culture c. achievement culture d. involvement culture

d. involvement culture

Management is the attainment of organizational goals in an effective and efficient manner through ______, ______, ______, and ______ organizational resources. a. authority, communication, opportunity, and direction b. authority, organizing, learning, leadership c. environment, technology, leading, and enabling d. planning, organizing, leading, and controlling

d. planning, organizing, leading, and controlling

Julia, the manager of a software firm, considers multiple perspectives before making crucial decisions. She specializes in the ability to behave in ways that build a trusting relationship with people who are different than her. In the context of the dimensions of a global mind-set, Julia is most likely using the _____. a. psychological dimension b. cognitive dimension c. informational dimension d. social dimension

d. social dimension

Shipments of compact digital cameras dropped by 42% due to the industry being unable to adjust to changes in the ________. a. legal-political dimension b. economic dimension c. natural dimension d. technological dimension

d. technological dimension

Roberta, the CEO at Anderson Construction, serves on the board of directors for the local chapter of Habitat for Humanity. Each year, the company sponsors a Habitat Day in which all its employees actually work on a Habitat house. In this way, Anderson Construction is fulfilling a(n) _____ responsibility. discretionary legal economic ethical

discretionary (In the context of the criteria of corporate social responsibility, discretionary responsibility is the highest criterion of social responsibility because it goes beyond societal expectations to contribute to a community's welfare. It is purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics. See Section 4.6: What Is Corporate Social Responsibility?)

Melanie believes that men and women should not receive different salaries if they have the same qualifications and are performing the same job. This belief comes out of her sense of: distributive justice. procedural justice. compensatory justice. moral justice.

distributive justice. (Distributive justice requires that different treatment of people not be based on arbitrary characteristics. For example, men and women should not receive different salaries if they have the same qualifications and are performing the same job. See Section 4.3: Frameworks for Ethical Decision Making.)

As marketing director at her firm, Julia is leading a team that is conducting forums with customers about potential adaptations to a current product line, making those products more responsive to customers' needs. These forums are part of the company's _____ responsibilities. discretionary legal economic ethical

economic (One of the four criteria of social responsibility is economic responsibility. The business institution is, above all, the basic economic unit of society. Its responsibility is to produce the goods and services that society wants and to maximize profits for its owners and shareholders. See Section 4.6: What Is Corporate Social Responsibility?)

Companies are especially concerned about the _____ dimension of the general environment because it includes consumer purchasing power, the unemployment rate, and interest rates. economic legal/political technological task

economic (The economic dimension represents the general economic health of the country or region in which the organization operates. Consumer purchasing power, the unemployment rate, and interest rates are part of an organization's economic environment. See Section 2.1: The External Environment.)

The social performance model for evaluating a company's social responsiveness uses four criteria. They are: economic, legal, ethical, and discretionary. sustainability, economic, legal, and stakeholder. legal, economic, social, and humane. professional, legal, financial, and human resources.

economic, legal, ethical, and discretionary. (The model for evaluating corporate social performance indicates that total corporate social responsibility can be divided into four primary criteria: economic, legal, ethical, and discretionary responsibilities. See Section 4.6: What Is Corporate Social Responsibility?)

At the postconventional level of moral development, managers: encourage interpersonal relationships and cooperation through their leadership style. use a coercive style of leadership. prefer work-group collaboration for accomplishing organizational goals. encourage others to think for themselves and focus on the needs of their followers.

encourage others to think for themselves and focus on the needs of their followers. (When managers operate from the postconventional level of moral development, they use transformative or servant leadership, focusing on the needs of followers and encouraging others to think for themselves and to engage in higher levels of moral reasoning. Employees are empowered and given opportunities for constructive participation in governance of an organization. See Section 4.4: The Individual Manager and Ethical Choices.)

After reading about a study by Adam Grant, Malcolm decided to try _____ in order to increase his team's effectiveness based on Grant's claim that this approach was the biggest single predictor of team productivity. encouraging greater help and support among team members promising vacation time granting bonuses working harder on the project in ways that were visible to the team

encouraging greater help and support among team members (In one study, Grant found that the single biggest predictor of a team's effectiveness was the amount of help and support that members gave to one another. See Section 4.4: The Individual Manager and Ethical Choices.)

Citibank decided to purchase a new private jet for $50 million in 2009 after it received a $45 billion government bailout in taxpayer funds following the financial crisis of 2008. It later reversed this decision after backlash about its _____ responsibility as a corporation. discretionary legal economic ethical

ethical (In the context of the criteria of corporate social responsibility, ethical responsibility includes behaviors that are not necessarily codified into law and may not serve a corporation's direct economic interests. To be ethical, organization decision makers should act with equity, fairness, and impartiality, respect the rights of individuals, and provide different treatment of individuals only when relevant to the organization's goals and tasks. See Section 4.6: What Is Corporate Social Responsibility?.)

At the meeting, a purchasing agent within the corporation discloses the receipt of an invitation to a weeklong vacation at friend's condo in Vail, Colorado. This friend is also a vice president at one of the company's suppliers. The two individuals were friends before they came to work at their respective current jobs. To avoid any appearance of a conflict of interest, the purchasing agent wants approval from the corporation's: whistle-blowers review board. ethics committee. legal counsel. board of directors.

ethics committee. (An ethics committee is a group of executives charged with overseeing company ethics by ruling on questionable issues and disciplining violators. See Section 4.7: Managing Company Ethics and Social Responsibility.)

Penny has just been assigned to an international manager position with her company. She is being sent to Mexico and is not impressed with the culture there. Because of her _____, relationships can be damaged, trust can be lost, and the willingness to maintain the business relationship can be broken. ethnocentrism high power distance collectivistic attitude low uncertainty avoidance

ethnocentrism (Ethnocentrism refers to a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values. See Section 3.6: Sociocultural Challenges.)

Innovo Inc. is a company known for a number of electronic innovations. Its production facilities are located primarily in the United States, but it ships its products to markets throughout the world for sale there. Its market entry strategy into foreign markets consists primarily of: direct investment. geocentrism. licensing. exporting.

exporting. (Organizations have a couple of ways to become involved internationally. Exporting, licensing, and direct investing are called market entry strategies because they represent alternative ways to sell products and services in foreign markets. See Section 3.4: Getting Started Internationally.)

Among the strategies for entering the international arena, _____ generally is the least costly, whereas _____ is the most expensive. a greenfield venture; licensing exporting; a greenfield venture licensing; exporting a joint venture; global outsourcing

exporting; a greenfield venture (Among the options for international business engagement—exporting, global outsourcing, licensing, franchising, joint venture, acquisition, and greenfield venture—exporting is least costly to enter with lowest ownership level of foreign operations and the opposite is true for greenfield ventures. See Section 3.4: Getting Started Internationally.)

Google's employees are highly committed and create a high-performance organization in part because the internal culture of the organization fits the needs of the: internal environment and company vision. external environment and company strategy. current employees and management. customers and business vendors.

external environment and company strategy. (The internal culture must fit the needs of the external environment and company strategy. When this fit occurs, highly committed employees create a high-performance organization that is tough to beat. See Section 2.3: The Internal Environment: Corporate Culture.)

Sweden's cultural preference for value of relationships, cooperation, group decision making, and quality of life is consistent with Hofstede's value system dimension of: individualism. high uncertainty avoidance. high power distance. femininity.

femininity. (Femininity reflects the values of relationships, cooperation, group decision making, and quality of life. Both men and women subscribe to the dominant value in masculine and feminine cultures. See Section 3.6: Sociocultural Challenges.)

When it comes to human behavior, the behavior about which the law has no say and for which an individual or organization enjoys complete freedom falls within the domain of: ethics. free choice. codified law. a social dilemma.

free choice. (The domain of free choice pertains to behavior about which the law has no say and for which an individual or organization enjoys complete freedom. An example is a manager's choice of where to buy a new suit, or an organization's choice of which of two well-qualified candidates to hire for an open position. See Section 4.1: What Is Managerial Ethics?)

Green Cleaning Service has decided to hire three additional employees for a new cleaning crew. This decision falls within the domain of: ethics. free choice. codified law. social responsibility.

free choice. (The free choice domain has no specific laws, yet it does have standards of conduct based on shared principles and values about moral conduct that guide an individual or company. See Section 4.1: What Is Managerial Ethics?)

In their country, Micah has higher social, political, and economic status than his sister, Elsa. The GLOBE Project includes this characteristic of _____ among its cultural value dimensions. gender differentiation performance orientation humane orientation assertiveness

gender differentiation (This dimension refers to the extent to which a society maximizes gender role differences. In countries with low gender differentiation, women typically have a higher status and play a larger role in decision making. Countries with high gender differentiation accord men higher social, political, and economic status. See Section 3.6: Sociocultural Challenges.)

Social, economic, legal-political, international, natural, and technological factors that influence all organizations about equally and primarily in indirect ways are part of the: internal environment. general environment. strategic environment. task environment.

general environment. (The general environment affects organizations indirectly. It includes social, economic, legal-political, international, natural, and technological factors that influence all organizations about equally. Changes in federal regulations or an economic recession are part of the organization's general environment. See Section 2.1: The External Environment.)

The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries is referred to as: a global mind-set. globalization. outsourcing. exporting.

globalization. (A result of globalization is that countries, businesses, and people become increasingly interdependent. See Section 3.1: A Borderless World.)

Julie Aigner-Clark is the founder of Baby Einstein. She began with a love of the arts and humanities and wanted to share that passion with her baby. Through persistence and hard work, she developed videos designed to enrich children's minds and experiences. To many at Baby Einstein, she is a: story. symbol. hero. slogan.

hero. (Heroes are role models for employees to follow. Heroes with strong legacies may continue to influence a culture even after they are gone. See Section 2.3: The Internal Environment: Corporate Culture.)

Iceland as a society places great value on helping others and being kind, whereas France expects people to take care of themselves and places high importance on self-enhancement and gratification. Iceland ranks ____ whereas France ranks _____. high on the assertiveness dimension; low on this dimension low on the future orientation dimension; low on this dimension low on the humane orientation dimension; high on this dimension high on the humane orientation dimension; low on this dimension

high on the humane orientation dimension; low on this dimension (Humane orientation refers to the degree to which a society encourages and rewards people for being fair, altruistic, generous, and caring. A country low on this orientation expects people to take care of themselves. See Section 3.6: Sociocultural Challenges.)

Whenever Zachary faces an ethical dilemma, he always decides to be completely honest and do what he feels is best for himself and his family. Zachary follows a(n) _____ approach as a guide for ethical decision making. practical justice utilitarian individualism

individualism (Individualism is believed to lead to honesty and integrity because that works best in the long run. Lying and cheating for immediate self-interest just causes business associates to lie and cheat in return. Thus, proponents say, individualism ultimately leads to behavior toward others that fits standards of behavior that people want toward themselves. See Section 4.3: Frameworks for Ethical Decision Making.)

Recently, because of the Paris Climate Agreement, India is delaying the building of new coal-fired power generating plants in favor of investments in renewable power. These decisions affect the country's: social values. political risk. demographic profile. infrastructure.

infrastructure. (Infrastructure includes energy-producing facilities such as utilities and power plants; transportation facilities such as railroads and airports; and communication facilities such as telephone lines and radio stations. See Section 3.5 Legal-Political Challenges.)

With its entrance into new markets in South America, Athletics Clothing Inc. has hired a Brazilian marketing company. The relationship with this company is part of the _____ dimension of Athletics Clothing's general environment. labor market culture international customer

international (As managers expand into global markets, they have to consider the international dimension of the external environment. The international environment provides new competitors, customers, and suppliers and shapes social, technological, and economic trends as well. See Section 2.1: The External Environment.)

Bouquet Floral is known for its caring, family-like atmosphere. Its corporate culture emphasizes the involvement and participation of employees, and it attaches great importance to meeting the needs of its employees. Bouquet Floral has a(n) _____ culture. involvement adaptability consistency achievement

involvement (The involvement culture emphasizes an internal focus on the participation of employees to adapt to changing needs. Managers emphasize values such as cooperation, consideration of both employees and customers, and avoiding status differences. See Section 2.4: Types of Culture.)

At K&P Production and Manufacturing, customers often meet with a production team to confirm specifications for a product. The production team is encouraged to offer suggestions for improving the product's design or quality. K&P's culture could be described as a(n): involvement culture. adaptability culture. consistency culture. achievement culture.

involvement culture. (In an involvement culture, managers emphasize values such as cooperation, consideration of both employees and customers, and avoiding status differences. The involvement culture emphasizes an internal focus on the involvement and participation of employees to adapt rapidly to changing needs from the environment. See Section 2.4: Types of Culture.)

One of the reason's the market in China is so attractive to businesses around the world is: it has the largest or second-largest market for a variety of products and services. its commitment to free markets. Chinese government policies make doing business in China relatively smooth and easy. a contract is an unchangeable bible for Chinese companies.

it has the largest or second-largest market for a variety of products and services. (China, with the fastest-growing middle class in history, is the largest or second-largest market for a variety of products and services, including mobile phones, automobiles, consumer electronics, luxury goods, and Internet use. See Section 3.2: The Changing International Landscape.)

Organizations continue to look for ways to keep up with technological advancements and compete in the global economy. A way that is becoming more and more popular that involves strategic alliances is: scenario building. boundary spanning. turbulence management. joint ventures.

joint ventures. (A step beyond strategic partnerships for companies to reduce environmental uncertainty is to become involved in mergers or joint ventures, which are strategic alliances or programs by two or more organizations. See Section 2.2: The Organization-Environment Relationship.)

A recent buzzword that has come to signify an innovation mindset is: jugaad. kaizen. open-book. six-sigma.

jugaad. (Management—like most disciplines—loves buzzwords, and jugaad is one of the most recent to appear on the radar. Jugaad basically refers to an innovation mindset, used widely by Indian companies, that strives to meet customers' immediate needs quickly and inexpensively. See Section 1.7: Innovative Management Thinking for a Changing World.)

Martton is involved in making strategic decisions about which regions his company would like to go in its efforts to expand globally. One of the major considerations is the various countries' _____, which is a key legal-political factor. economic conditions demographic profile exchange rates laws and regulations

laws and regulations (Legal-political factors in the international environment include government intervention, political risk, tariffs, quotas, taxes, terrorism, political instability, and laws and regulations. See Section 3.5: Legal-Political Challenges.)

The production line that Hugo oversees has just malfunctioned and caused an accident that injured one worker. Hugo, to fulfill the company's _____ responsibility, will file a report and cooperate with OSHA inspectors in their investigation of the accident. discretionary legal economic ethical

legal (In the context of the four criteria of corporate social performance, legal responsibility defines what society deems as important with respect to appropriate corporate behavior. That is, businesses are expected to fulfill their economic goals within the framework of legal requirements imposed by local town councils, state legislators, and federal regulatory agencies. See Section 4.6: What Is Corporate Social Responsibility?)

The federal government influences organizations through the Occupational Safety and Health Administration (OSHA), Environmental Protection Agency (EPA), consumer protection and privacy legislation, product safety requirements, and labeling requirements, which makes them part of the _____ dimension of organization's external environment. economic technological international legal-political

legal-political (The legal-political dimension includes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior. See Section 2.1: The External Environment.)

When Coca-Cola enters a foreign market, it generally makes certain resources available to a company in another country that enables the company to produce and market Coke locally. This _____ arrangement offers Coca-Cola relatively easy access to international markets at low cost. joint venture wholly owned subsidiary licensing exporting

licensing (With a market-entry strategy of licensing, a company in one country makes certain resources available to companies in other countries to participate in the production and sale of its products abroad. See Section 3.4: Getting Started Internationally.)

While in India, Benjamin noticed that most of the people had a high tolerance of uncertainty and unpredictability. This tendency is characteristic of a culture with: low power distance. high power distance. high uncertainty avoidance. low uncertainty avoidance.

low uncertainty avoidance. (Low uncertainty avoidance means that people have great tolerance for the unstructured, the unclear, and the unpredictable. Low power distance means that people expect equality in power. See Section 3.6: Sociocultural Challenges.)

In managing the strategic approach of and with its subsidiary in Germany, managers at Sharon's company have found that communication with their German colleagues consists mostly of an exchange of facts and information and making sure the aspects of their business transactions are carried out efficiently. The reason this communication style is typical in this situation is because the United States and Germany are both: strong in long-term orientation. strong in short-term orientation. low-context cultures. high-context cultures.

low-context cultures. (People from some cultures tend to pay more attention to the social context of their verbal communication. Germany and the United States are both low-context in that they communicate meaning based more from explicit words than from setting, status, and nonverbal behavior, and relationships and trust are more important than business. They are opposites in their time orientation: Germany is highly long-term whereas the United States has a strong short-term orientation. See Section 3.6: Sociocultural Challenges.)

At its very basis, being ethical involves: deferring to legal authorities. making decisions. following the rules. increasing the bottom line.

making decisions. (Being ethical is always about making decisions. An ethical dilemma arises in a situation concerning right or wrong when values are in conflict. See Section 4.2: Ethical Dilemmas: What Would You Do?)

As its _____ strategy, Disney Consumer Products uses licensing in order to sell products and services in foreign markets. global outsourcing market entry importing bottom of the pyramid

market entry (Organizations develop markets for finished products or services outside their home countries through exporting, licensing, and direct investing. Exporting, licensing, and direct investing are called market entry strategies because they represent alternative ways to sell products and services in foreign markets. See Section 3.4: Getting Started Internationally.)

If a behavior is ethical, it: is legal. is illegal. may be legal or illegal. has nothing to do with whether it is legal.

may be legal or illegal. (People mistakenly assume that if it's not illegal, it must be ethical, as if there were no third domain. A better option is to recognize the domain of ethics and accept moral values as a powerful force for good that can regulate behaviors both inside and outside organizations. See Section 4.1: What Is Managerial Ethics?)

The most pressing concern for individuals at the conventional level of moral development is to: obtain external rewards. follow their own internal values. obey authority. meet social obligations.

meet social obligations. (At the conventional level of moral development, people learn to conform to the expectations of good behavior as defined by colleagues, family, friends, and society. Meeting social and interpersonal obligations is important. See Section 4.4: The Individual Manager and Ethical Choices.)

American construction companies have had trouble accessing adequate supplies of steel. This problem relates to the _____ in the United States. infrastructure regulations resources market economic conditions

resources market (The adequacy of the market for needed resources is one of the key factors in international business. See Section 3.5 Legal-Political Challenges.)

One of your employees has just come to you saying that he is being sexually harassed by a coworker. He shows you suggestive notes and cartoons that have been left at his desk. He asks you to speak to other coworkers, who confirm the behavior has occurred. You must, as a(n) _____, reprimand the perpetrator and refer the perpetrator's employment status to the human resources department. company employee legal counsel ethical philosopher moral agent

moral agent (The individual who must make an ethical choice in an organization is the moral agent. See Section 4.2: Ethical Dilemmas: What Would You Do?)

In the war on terror, military forces have dropped bombs on various targets. The commander of a unit decides not to bomb a certain target because of intelligence that says numerous civilians are currently located there as well as enemy militants. This decision is based on a(n) _____ approach. individualism utilitarian moral-rights compensatory justice

moral-rights (A moral-rights approach, which holds that ethical decisions are those that best maintain the fundamental rights of the people affected by them. See Section 4.3: Frameworks for Ethical Decision Making.)

Although the term for them has no precise definition, large international firms are typically called: import-export concerns (IECs). business cultures. multinational corporations (MNCs). joint ventures.

multinational corporations (MNCs). (In the business world, large international firms are typically called multinational corporations (MNCs), which have been the subject of enormous attention. MNCs can move a wealth of assets from country to country and influence national economies, politics, and cultures. See Section 3.3: Multinational Corporations.)

Managers faced with these kinds of tough ethical choices often benefit from a _____ strategy, which is one based on norms and values, to guide their decision making. strategic normative professional personal

normative (When faced with tough ethical choices, managers can use strategies based on norms and values. These normative strategies guide their decision making. See Section 4.3: Frameworks for Ethical Decision Making.)

At the preconventional level of moral development, individuals: obey authority to avoid detrimental personal consequences. are guided by an internal sense of universal justice and right. value personal values more than others' expectations. conform to the expectations of good behavior.

obey authority to avoid detrimental personal consequences. (At the preconventional level, individuals are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences. In an organizational context, this level may be associated with managers who use an autocratic or coercive leadership style, with employees oriented toward dependable accomplishment of specific tasks. See Section 4.4: The Individual Manager and Ethical Choices.)

Telemarketers Inc. offers call center services to companies throughout the United States. Through _____, Telemarketers Inc. has set up numerous call centers in India and engages workers there who speak English in order to take advantage of the less expensive sources of labor. franchising direct investing offshoring licensing

offshoring (Global outsourcing, also called offshoring, means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies. Millions of low-level jobs such as textile manufacturing, call center operations, and credit card processing have been outsourced to low-wage countries in recent years. See Section 3.4: Getting Started Internationally.)

Managers at Gemini Supplies Company are looking for ways to bring down the costs of production. One of their options is to seek suppliers from outside the United States. This practice is known as: licensing. global mind-set. exporting. offshoring.

offshoring. (One of the ways organizations become involved internationally is to seek cheaper resources such as materials or labor offshore, which is called offshoring or global outsourcing. See Section 3.4: Getting Started Internationally.)

Within the task and general environments, the interaction among a community of organizations in the environment forms an: organizational value chain. organizational culture. organizational ecosystem. organizational structure.

organizational ecosystem. (An organizational ecosystem is a system formed by the interaction among a community of organizations in the environment. An ecosystem includes organizations in all the sectors of the task and general environments that provide the resource and information transactions, flows, and linkages necessary for an organization to thrive. See Section 2.1: The External Environment.)

The purpose of a policy-based statement in an organization's code of ethics is to: affect corporate culture. define company responsibilities. specify the guidelines for treatment of employees. outline the procedures to be used in specific ethical situations.

outline the procedures to be used in specific ethical situations. (Policy-based statements generally outline the procedures to be used in specific ethical situations. These situations include marketing practices, conflicts of interest, observance of laws, proprietary information, political gifts, and equal opportunities. See Section 4.7: Managing Company Ethics and Social Responsibility.)

Research by Kotter and Heskett showed that companies that intentionally managed cultural values: had "happier" employees but no noticeable differences in company performance measures. did not maintain performance levels in rapidly changing environments. outperformed similar companies that did not. showed no significant correlation in financial performance to those efforts.

outperformed similar companies that did not. (John Kotter and James Heskett provided evidence that companies that intentionally managed cultural values outperformed similar companies that did not. Recent research validates that elements of corporate culture are positively correlated with higher financial performance. See Section 2.5: Shaping Corporate Culture for Innovative Response.)

Internationally, companies engage in the international division of labor in order to obtain cheaper sources of labor and supplies in this type of interaction. This is called: licensing. direct investment. outsourcing. franchising.

outsourcing. (One of the ways organizations have to become involved internationally is to seek cheaper resources such as materials or labor offshore, which is called offshoring or global outsourcing. See Section 3.4: Getting Started Internationally.)

As a company executive, the chief ethics officer is responsible for: directing decisions about the economic responsibility of the company. coordinating all four criteria of the company's social responsibility. single-handedly ensuring the company's triple bottom line. overseeing all aspects of ethics and legal compliance.

overseeing all aspects of ethics and legal compliance. (A chief ethics officer oversees all aspects of ethics and legal compliance, including establishing and broadly communicating standards, ethics training, dealing with exceptions or problems, and advising senior managers in the ethical and compliance aspects of decisions. See Section 4.7: Managing Company Ethics and Social Responsibility.)

Rachel is a manager at Worldwide Distribution. The management strategy at Worldwide is primarily oriented toward the markets of its individual foreign host countries. This type of multinational company is considered to be: geocentric. nation-specific. polycentric. ethnocentric.

polycentric. (Polycentric companies are oriented toward the markets of individual foreign host countries; ethnocentric companies place emphasis on their home countries; polycentric companies are oriented toward the markets of individual foreign host countries; and geocentric companies are world-oriented and favor no specific country. See Section 3.3: Multinational Corporations.)

Janice works at a payroll company. She never uses the copy machine for personal papers, never takes a cup of coffee in the break room without putting a quarter in the jar, and never takes home pens or pencils from the office. Janice is operating at _____ of moral development. a postconventional level a conventional level a preconventional level potentially any one of the three levels

potentially any one of the three levels (Although the great majority of managers operate at level 2, meaning that their ethical thought and behavior is greatly influenced by their superiors and colleagues in the organization or industry, the level at which Janice operates cannot be discerned from the limited information given here. See Section 4.4: The Individual Manager and Ethical Choices.)

Arjun has been assigned to headquarters in the United States. His company in India is a subsidiary. Over the first several months of his job, Human Resources receives several complaints about the way Arjun treats lower-level managers and administrative staff. He is required to attend a cultural sensitivity training program because of this issue with different acceptance of: future orientation. gender differentiation. power distance. uncertainty avoidance.

power distance. (High power distance means that people accept inequality in power among institutions, organizations, and people. Countries that value high power distance include Malaysia, India, and Mexico. See Section 3.6: Sociocultural Challenges.)

The purpose of an organization's ethics hotline is to provide employees with a channel to: make informed choices regarding various fringe benefits. identify the expectations and relative power of various stakeholders. report questionable behavior. serve personal needs and interests.

report questionable behavior. (Most organization's ethics offices work as counseling centers to help employees resolve difficult ethical issues. A toll-free confidential ethics hotline allows employees to report questionable behavior, as well as seek guidance concerning ethical dilemmas. See Section 4.7: Managing Company Ethics and Social Responsibility.)

Among Jana's career goals is a management position abroad. In order to develop her global mind-set, she would probably pursue all of the following activities EXCEPT: research the services that will allow her an insular private life while abroad. travel internationally. create networks of relationships through social media. learn a foreign language.

research the services that will allow her an insular private life while abroad. (International travel, foreign study, cultivating relationships across borders via social media, and immersing oneself in the culture are all ways to globalize one's thinking. Insulating oneself from the culture is not. See Section 3.1: A Borderless World.)

The clothing manufacturer that Lee works for must make a decision whether to pursue a licensing agreement with a company in Australia that wants to produce clothing with Lee's company label on it or to make an offer to acquire the Australian company as a wholly owned subsidiary. One of the main considerations in making this decision is _____, a key economic factor. demographic profile tariffs and taxes resources and product markets regulation

resources and product markets (Economic factors in the international environment include exchange rates, economic development, infrastructure, resources and product markets, per capita income, and economic conditions. See Section 3.5: Legal-Political Challenges.)

Tracy operates from a higher level of development and as a manager, she focuses on the needs of followers, encouraging others to think for themselves. Tracy is a(n): authoritarian leader. conforming leader. collaborative leader. servant leader.

servant leader. (When managers operate from a higher level of development, they may use a form of servant leadership, focusing on the needs of followers and encouraging others to think for themselves. See Section 4.4: The Individual Manager and Ethical Choices.)

Fuhua from China and Raissa from Argentina are their organizations' managerial counterparts. To deal with the increasing uncertainty in their industry and its international markets, their organizations' relationship is: reluctant to coordinate on strategic issues. highly adversarial. subject to almost no turbulence. shifting toward a greater partnership orientation.

shifting toward a greater partnership orientation. (In an interorganizational partnership, each organization both supports and depends on the others for success, and perhaps for survival. Managers in partnering organizations shift from an adversarial orientation to a partnership orientation. See Section 2.2: The Organization-Environment Relationship.)

Moody's misery index adds together a country's unemployment rate and the budget deficit as a percentage of GDP. The 2010 figures suggest: that the misery index for developed countries has decreased, but increased for developing countries. significantly greater misery for almost every country compared to the beginning of this century. that the misery index for developing countries has decreased, but increased for developed countries. that recent economic conditions have hit the majority of countries equally hard.

significantly greater misery for almost every country compared to the beginning of this century. (Recent financial woes have left a number of countries reeling, as reflected in a "misery index" created by a Moody's economist, showing significantly greater misery for almost every country since 2000. See Section 3.5 Legal-Political Challenges.)

Guillermo is preparing for a management assignment with his organization overseas. Part of Guillermo's preparation is learning the language spoken in that country. His efforts contribute to the _____ dimension of his global mind-set by increasing his ability to understand his colleagues there and build relationships with them. cognitive psychological social relative

social (The social dimension of the global mind-set concerns the ability to behave in ways that build trusting relationships with people who are different from oneself. See Section 3.1: A Borderless World.)

Penelope has held a management position at her organization's foreign subsidiary for nearly a year. She has put much effort into building relationships of trust with other managers there. With her efforts, she is cultivating the _____ of the global mind-set. social dimension relative dimension cognitive dimension psychological dimension

social dimension (The social dimension of the global mind-set concerns the ability to behave in ways that build trusting relationships with people who are different from oneself. See Section 3.1: A Borderless World.)

When HSBC Bank took its branding campaign, "Assume Nothing," abroad, the phrase was translated in many countries as "Do Nothing." The company spent $10 million to change its slogan to "The world's private bank," an expensive lesson because of its miscalculations in language, a key _____ factor in international business. sociocultural intellectual economic legal-political

sociocultural (Sociocultural factors in the international environment include language, social values and beliefs, religion, demographic profile, formal education, literacy, and time orientation. See Section 3.5: Legal-Political Challenges.)

Many new retail facilities include family or nongender-specific restrooms for customers and employees as a response to changes in the _____ environment. technological geographic supply chain sociocultural

sociocultural (The sociocultural dimension of the general environment represents the demographic characteristics, norms, customs, and values of the general population. See Section 2.1: The External Environment.)

Stephanie is putting together a _____ in which she identifies the expectations, needs, importance, and relative power of various stakeholders, which may change over time. stakeholder map CSR blueprint contingency plan strategic outline

stakeholder map (There is growing interest in a technique called stakeholder mapping, which basically provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders, which may change over time. Stakeholder mapping helps managers identify or prioritize the key stakeholders related to a specific issue or project. See Section 4.5: What Is Corporate Social Responsibility?)

As Diego and his management team make strategic decisions, they factor in environmental and social concerns, making sure to consider the long-term effects of those decisions. They operate with a philosophy of: scenario building. scientific management. social learning. sustainability.

sustainability. (Some corporations are embracing an idea called sustainability or sustainable development. With a philosophy of sustainability, managers weave environmental and social concerns into every strategic decision so that financial goals are achieved in a way that is socially and environmentally responsible. See Section 4.5: What Is Corporate Social Responsibility?)

On every Apple computer, iPhone, and other product is the familiar outline of an apple with a bite out of it. In fact, it is one of the most highly recognizable brand _____ in the world. stories symbols heroes slogans

symbols (A symbol is an object, act, or event that conveys meaning about the organization to others. See Section 2.3: The Internal Environment: Corporate Culture.)

The sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance are part of the: technological environment. general environment. economic environment. task environment.

task environment. (The task environment is closer to an organization and includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance. It is generally considered to include competitors, suppliers, customers, and the labor market. See Section 2.1: The External Environment.)

Readyset is a solar-powered smart battery used to charge mobile devices. The company produced it for customers where electricity is unavailable or unreliable and touted its entrepreneurial aspect in that owners of such devices can charge neighbors to charge their phones. Here, Readyset is an example of: ethnocentrism. the bottom of the pyramid strategy. franchising. a business alliance.

the bottom of the pyramid strategy. (The bottom of the pyramid concept proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world's poorest people. See Section 3.3: Multinational Corporations.)

Gretta is a manager responsible for much of the strategic planning for her company's foreign operations. Part of setting sales objectives and meeting customer needs in that foreign market is dependent on her knowledge of _____, a key sociocultural factor. economic conditions political risk the demographic profile infrastructure

the demographic profile (Sociocultural factors in the international environment include social values and beliefs, language, religion, demographic profile, formal education, literacy, and time orientation. See Section 3.5: Legal-Political Challenges.)

Most ethical dilemmas involve a conflict between: parties to a contract. individual markets. the needs of the part and the whole. stakeholders and shareholders.

the needs of the part and the whole. (Most ethical dilemmas involve a conflict between the needs of the part and the whole—the individual versus the organization or the organization versus society as a whole. See Section 4.3: Frameworks for Ethical Decision Making.)

The highest levels of uncertainty for a firm occur when: the number of factors in the organization environment is high and the rate of change in factors in the environment is low. the number of factors in the organization environment is low and the rate of change in factors in the environment is low. the number of factors in the organization environment is high and the rate of change in factors in the environment is high. the number of factors in the organization environment is low and the rate of change in factors in the environment is high.

the number of factors in the organization environment is high and the rate of change in factors in the environment is high. (When the number of factors in the organization environment is high and the rate of change in factors in the environment is high, organizational uncertainty is especially high and managers must find effective ways of adapting. See Section 2.2: The Organization-Environment Relationship.)

Companies may fare poorly when they use economic criteria as their only measure of responsibility, which is sometimes called: the profit-maximizing view. stakeholder mapping. the triple bottom line. organizational virtuousness.

the profit-maximizing view. (The profit-maximizing view, advocated by Nobel economist Milton Friedman, argues that the corporation should be operated on a profit-oriented basis, with its sole mission to increase its profits so long as it stays within the rules of the game. See Section 4.6: What Is Corporate Social Responsibility?)

Every manager today needs to think globally because: the best management techniques come from foreign countries. all businesses are subject to international trade agreements. every manager will end up working internationally at some point. the whole world is a source of business threats and opportunities.

the whole world is a source of business threats and opportunities. (The whole world is a source of business threats and opportunities, and even managers who spend their entire careers working in their hometowns have to be aware of the international environment and probably interact with people from other cultures. See Section 3.1: A Borderless World.)

Organizations within the same industry often reveal similar cultural characteristics because: organizations with a culture unlike the standard for the industry cannot be successful. they are operating in similar environments. benchmarking limits exploration of other types of culture. industry structure does not allow the formation of other types of cultures.

they are operating in similar environments. (Cultures can vary widely across organizations; however, organizations within the same industry often reveal similar cultural characteristics because they are operating in similar environments. See Section 2.4: Types of Culture.)

To measure the level of managerial success of decisions based on sustainability, managers use a: triple bottom line. task force. utilitarian approach. stakeholder map.

triple bottom line. (Managers in organizations that embrace sustainability measure their success in terms of a triple bottom line. The term triple bottom line refers to measuring an organization's social performance, its environmental performance, and its financial performance. See Section 4.5: What Is Corporate Social Responsibility?)

The company 3M, headquartered in Minnesota, has always been known for encouraging employee innovation by providing centers and forums for creating practical ideas that become opportunities and are nurtured through resources for developing successful products. These _____ are the essence of culture and subconsciously guide behavior and decisions. ceremonies slogans and stories visible artifacts underlying assumptions and beliefs

underlying assumptions and beliefs (Some values become so deeply embedded that people are no longer consciously aware of them but provide the essence of culture and subconsciously guide behavior and decisions. See Section 2.3: The Internal Environment: Corporate Culture.)

The _____ principle, which advocated that each subordinate receive orders from a single superior, was among the 14 that were part of Fayol's contribution to the administrative principles approach to management. unity of direction scalar chain division of work unity of command

unity of command (Division of work was meant to maximize efficiency through specialization. Unity of command meant employees each had only one superior giving them orders. See Section 1.9: Classical Perspective.)

In order to keep costs low and remain competitive in the market, Carrier has decided to move much of its production facility to Mexico. This decision was based on the _____ approach. moral-rights distributive justice procedural justice utilitarian

utilitarian (The utilitarian approach to ethical decision making says that the ethical choice is the one that produces the greatest good for the greatest number. Moving production to Mexico helps the company stay solvent. See Section 4.3: Frameworks for Ethical Decision Making.)

In the Enron scandal (2001), the company found a way to avoid reporting huge debts. A whistle-blower alerted authorities. Enron's CEO was clearly engaged in unethical behavior. He was sentenced to prison because: if a behavior is unethical, it is also illegal. people in general believe it to be illegal as well as unethical. values and standards that say a company can't falsify its financial documents are codified law. the domains of ethics and free choice both say he needs to be punished for misleading investors.

values and standards that say a company can't falsify its financial documents are codified law. (Through codified law, values and standards are written into the legal system and enforceable in the courts. See Section 4.1: What Is Managerial Ethics?)

Atlantic Healthcare provides free daycare for preschool-aged children of its employees. This _____ of the organization provides a positive human impact and unconditional society betterment for its own sake rather than for economic reasons. act of sustainability stakeholder mapping triple bottom line virtuousness

virtuousness (Discretionary responsibility is related to organizational virtuousness, which means that an organization pursues a positive human impact, moral goodness, and unconditional society betterment. See Section 4.6: What Is Corporate Social Responsibility?)

Cedar Memorial Chapel and Funeral Home conveys a sense of reverence and compassion. Its chapel and rooms are tastefully decorated in subdued calming colors. Its employees dress formally in suits. These aspects of the atmosphere at Cedar Memorial are part of its: visible artifacts. underlying assumptions. ceremonies. expressed values.

visible artifacts. (The visible artifacts of corporate culture include things such as manner of dress, patterns of behavior, physical symbols, organizational ceremonies, and office layout. See Section 2.3: The Internal Environment: Corporate Culture.)

The cultural leader articulates a _____ for the organizational culture that employees can believe in and will rally around. vision performance policy relentless focus on performance mandate

vision (The cultural leader articulates a vision for the organizational culture that employees can believe in. The leader defines and communicates central values that employees believe in and will rally around. Values are tied to a clear and compelling mission, or core purpose. See Section 2.5: Shaping Corporate Culture for Innovative Response.)

Edward finds out that his company is not filtering the effluent by-product from its production process before draining it into a nearby stream as required by EPA regulations. Because his manager has been unreceptive to any suggestions in the past, Edward calls the local newspaper with information about this activity. Edward has engaged in: stereotyping. whistle-blowing. unethical employee behavior. organizational virtuousness.

whistle-blowing. (Employee disclosure of illegal, unethical, or illegitimate practices on the employer's part is called whistle-blowing. Whistle-blowers often report wrongdoing to outsiders, such as regulatory agencies, senators, or newspaper reporters. See Section 4.7: Managing Company Ethics and Social Responsibility.)