Management

False

Organizational heroes are used to make sense of organizational events and changes.

True

Organizational structure is the vertical and horizontal configuration of departments, authority, and jobs within a company.

False

Planning is a three-step process which involves first setting goals, next developing effective action plans, and finally tracking progress toward goal achievement.

True

Portfolio strategy is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.

good housekeeping

Process modification, material/product substitution, and ____ are the three strategies used for waste prevention and reduction.

environmental scanning

The first step managers use to make sense of their changing environments is ____.

False

The only kinds of adaptive strategies are defending, analyzing, and reacting.

False

The organization's vision must regularly change to adapt to changes in the environment over time.

True

The three positioning strategies are cost leadership, differentiation, and focus

True

The last stage of team development, where decline is complete, is the de-forming stage.

False

The level of agreement on whether behavior is good or bad is defined as the level of ethical acceptance.

False

The most common matrix combines customer and functional forms of departmentalization.

False

The most common type of training provided to members of work teams is training in leadership skills.

encouraging workers' participation in goal setting

The most popular approach to increasing goal commitment is ____.

helps managers determine how much employee participation should be used in decision making

The normative decision theory ____.

True

The normative decision theory helps leaders decide how much employee participation should be used when making decisions.

False

The number one mistake made by managers who were derailed from their fast track up the managerial ranks was that they didn't develop the necessary technical skills.

True

The objective control approach to managerial control manifests itself as either behavior control or output control.

False

The only dimension needed to measure quality is conformance to expectations.

duplication

The primary disadvantage of customer departmentalization is ____.

costs

The primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is ____.

False

The specific segment of an organization's external environment is unique to its region of the country.

False

The stakeholder model holds that the only social responsibility that businesses have is to maximize profits.

True

The term decision making is used to refer to the process of choosing a solution from available alternatives.

True

Control is achieved when behavior and work procedures conform to standards and company goals are accomplished.

False

Control loss usually has no affect on goal achievement.

Social loafing

____ is one of the disadvantages associated with the use of work teams.

exemplified by bonuses, trophies, and plaques

Extrinsic rewards are ____.

False

Global new ventures bring a good or service to market in one foreign market at a time.

False

Goal specificity is the extent to which a goal is hard or challenging to accomplish.

False

Conceptual skills are most important for lower-level managers.

have few external factors in the environment that affect it

A company facing a simple environment would ____.

easy access to growing markets

A country or region that has an attractive business climate for companies that want to go global has ____.

True

A joint venture is an example of a strategic alliance.

True

A management study discovered that companies which invest in their people will create long-term competitive advantages difficult for other companies to duplicate.

controlling

A manager engaged in the management function of ____ is monitoring progress toward goal achievement and taking corrective action when needed.

effectiveness

A manager striving to improve organizational ____ is accomplishing tasks that help fulfill organizational objectives.

identify critical performance-related behavior

A manager who wants to use reinforcement theory to motivate workers should first ____.

True

A primary source of organizational culture is the company founder.

establish a positive organizational culture that encourages employees to be passionate about their clients

A top manager for a management consulting firm would:

False

A virtual organization is an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants.

False

Concurrent control seeks to prevent or minimize performance deficiencies before they occur.

rare

A(n) ____ resource is a resource that is not controlled or possessed by many competing firms.

the path-goal theory

According to ____, leaders need to make clear how followers can achieve organizational goals, take care of problems that prevent followers from achieving goals, and then find more and varied rewards to motivate followers who achieve those goals.

True

According to expectancy theory, instrumentality is strong when employees believe that improved performance will lead to better and more rewards.

False

According to some industrial psychologists, Performance = Motivation ´ Ability.

valence, expectancy, and instrumentality

According to the expectancy theory, ____ affect the conscious choices that people make about their motivation.

directive leadership

According to the path-goal theory of leadership, ____ involves letting employees know precisely what is expected of them, giving them specific guidelines for performing tasks, scheduling work, setting standards of performance, and making sure that people follow standard rules and regulations.

False

According to the stakeholder model of social responsibility, no stakeholder groups are more or less important than any other.

external

All events outside a company that have the potential to influence or affect it occur in the ____ environment.

official approval of the company's ethics code by government regulators

All of the following are important factors in the creation of an ethical business climate EXCEPT ____.

lives and works outside of his or her own country

An expatriate is someone who ____.

True

An intrinsic reward is a reward associated with performing a task or activity for its own sake

unintended consequences that accompany increased control

An often overlooked factor in determining the cost of control is ____.

True

An organic organization is characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge.

resources

An organization that has ____ has the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.

sharing the financial value of performance gains

An organization that rewards its team members through gainsharing is ____.

False

As a leader behavior, consideration refers to the extent to which leaders do what they said they would do.

True

As described in the path-goal theory, directive leadership is similar to the key leadership behavior of initiating structure.

True

Because external environments can be dynamic, confusing, and complex, managers use a three-step process to make sense of the changes in their external environments. Those steps are (1) environmental scanning, (2) interpreting environmental factors, and (3) acting on threats and opportunities.

False

Benchmarking is the process of setting corporate norms.

True

Both proximal and distal goals are used to provide additional motivation and rewards for employees.

False

Buyer dependence is the degree to which a company relies on a supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that product.

False

Cohesiveness refers to the extent to which members of a team are experiencing job satisfaction.

False

Companies face very little uncertainty in their strategic business environments.

benchmarking other companies

Companies may determine standards by ____.

True

Companies use their resources to improve organizational efficiency and effectiveness.

False

Companies will be considered unethical if they do not perform their discretionary responsibilities.

False

Cross-department coordination tends to be very easy in organizations with functional departmentalization.

True

Cross-functional teams are purposefully composed of employees from different functional areas of the organization.

True

Customs classification is a non-tariff trade barrier. It is important to international marketers because the category assigned by customs agents can affect the size of the tariff and the impact of import quotas.

leads to faster decision making and more satisfied customers and employees

Decentralization ____.

False

Developing a vision and mission statement is the sole responsibility of middle management.

True

Different businesses often need different combinations of global consistency and local adaptation.

makes managers at all levels pay much closer attention to how they run their segment of the business

Economic value added (EVA) is so important because it ____.

leadership

Effective managers define ____ as the process of influencing others to achieve group or organizational goals.

True

Empowerment can lead to changes in organizational processes because meaning, competence, impact, and self-determination produce empowered employees who take active rather than passive roles in their work.

False

Environmental complexity refers to the degree of change in the external factors that affect organizations.

social commitment

Ethical intensity depends on all of the following EXCEPT ____.

True

Ethics is the set of moral principles or values that defines right and wrong for a person or group.

encourages employees to set higher, more difficult goals after the initial goals are accomplished

Feedback can lead to stronger motivation and effort if it

True

Fiedler's contingency theory states that in order to maximize work group performance, leaders must be matched to the situation that best fits their leadership style.

False

First-line managers are responsible for setting objectives consistent with organizational goals and planning and implementing subunit strategies for achieving these objectives.

encourage, monitor, and reward the performances of their employees

First-line managers will most likely have to:

True

For goal-setting theory to motivate employees, managers must provide frequent, specific, performance-related feedback.

have slack resources

For options-based planning to work, the organization must ____.

True

For planning to be effective, workers need a specific, challenging goal as well as regular feedback to track their progress.

True

For punishment to work, the punishment must be strong enough to stop the undesired behavior and must be administered objectively, impersonally, consistently and contingently, and quickly.

focus employees' attention on critical aspects of their jobs energize behavior create a tension between the current state and the desired state be truly accepted by workers (do all of these!!!!!)

For the goal-setting theory to work, goals must ____.

True

From a competitive standpoint, resource similarity means that the strategic actions your company takes can probably be matched by your direct competitors.

allows work to be done by highly qualified specialists

Functional departmentalization ____.

True

Functional departmentalization organizes work and workers into separate units responsible for particular business functions or areas of expertise.

by creating problem-solving teams to study ways to improve customer satisfaction and make recommendations for improvements

How are organizations using teams to help increase customer satisfaction?

by rationalizing inputs or outcomes by changing the referent by simply quitting their jobs by reducing the level of energy and time they input into a project (by doing any of these!!!!)

How do employees try to restore equity when they perceive that they have been treated unfairly?

False

If retrenchment works, it is typically followed by a stability strategy.

True

In a multinational company, managers at company headquarters may value global consistency as a company policy over local adaptation because global consistency simplifies decision-making at corporate headquarters.

expectancy

In expectancy theory, ____ is the perceived relationship between effort and performance.

True

In many industries, teams are growing in importance because they help organizations respond to specific problems and challenges.

behavioral substitution

In order to change an organizational culture, top management can persuade other managers and employees to perform a new behavior in place of an older one. This technique is called ____.

True

In the decision-making process, teams can do a much better job than individuals in defining the problem and generating alternative solutions.

True

It would be safe to say that, while it sometimes pays to be socially responsible, at other times socially responsible behavior can create significant costs.

True

Leadership is the process of influencing others to achieve group or organizational goals.

False

Management by objectives is a two-step process in which managers and their employees discuss possible goals and then meet regularly to review progress toward the accomplishment of those goals.

asking employees what their needs are then matching rewards to those needs

Managers can motivate employees to increase their efforts by ____.

growth

McDonald's uses a ____ strategy (a kind of grand strategy) as it increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's version of a popular French grilled sandwich.

True

Middle managers are typically responsible for coordinating and linking groups, departments, and divisions within a company.

plan and allocate resources coordinate and link groups and departments implement changes and strategies generated by top managers monitor the activities of first-line managers who report to them (Do all these)

Middle managers typically:

outsource all but the core business activities that they can perform best

Modular organizations ____.

False

Most companies compete directly with all the firms in their industry.

True

Motivation is the set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal.

True

Multinational corporations are corporations that own businesses in two or more countries.

encourages people to work faster encourages people to try a variety of different ways to do others' jobs reduces employee turnover eliminates all discriminatory practices (DOES NONE OF THESE!!)

One of the benefits of planning is how it ____.

False

One of the disadvantages of project teams is their lack of flexibility.

To what extent should the company standardize or adapt business procedures?

One of the major questions that a company must typically answer once it has decided to go global is ____.

False

Punishment is also called avoidance learning.

excellence, value, and conformance to expectations

Quality is typically defined and measured in three ways. They are ____.

True

Resource scarcity is the degree to which an organization's external environment has an abundance or lack of critical organizational resources.

False

S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely.

False

Since teams should be an end in themselves, it is appropriate to use them in most situations.

False

Specialized jobs are generally inefficient.

True

Stakeholders are people or groups with an interest in a company's actions.

False

Strategic leadership is defined as the ability to think strategically and create a strategic plan for an organization.

are accurately described by all of these

Successful business leaders are not like other people. Successful business leaders ____.

False

Successful organizational cultures seem to be based solely upon consistency (i.e., "strength" of the organizational culture).

True

Tactical plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.

True

Team leaders are responsible for managing both internal team relationships and external relationships with other teams, departments, and divisions in a company.

False

Team normalization represents the differences in ability, experience, personality, or any other factor on a team.

False

Teams do not perform any better when offered extrinsic rewards.

cross-functional team

The ____ is purposefully composed of employees from different functional areas of the organization.

bureaucratic immunity

The achievement of stretch goals is made easier when the team members have ____.

forces managers at each level of the company to set specific goals and measure performance in each of four areas

The balanced scorecard approach to control ____.

False

The balanced scorecard approach to control emphasizes measurement of organizational performance in three equally important areas. These areas are finances, internal operations, and innovation and learning.

False

The basic components of equity theory are outcomes, instrumentality, and valence.

the establishment of clear standards of performance

The basic control process begins with ____.

has five steps provides a method for analyzing the ethical climate can be used to determine which principle of ethical decision making is appropriate to the situation begins with a diagnosis of the situation (is not accurately described by any of these!!!!!!!)

The basic model of ethical decision making ____.

True

The categories of social responsibility for a company are economic, legal, ethical, and discretionary

is the horizontal line of authority that indicates at which level of management an individual belongs acts at cross-purposes to the unity of command principle is only relevant in mechanistic organizations does not permit delegation of authority (is described by none of these!!!!!!!)

The chain of command ____.

True

The control process begins when managers set goals.

True

The first step in establishing an ethical climate in a company is for managers to act ethically themselves.

assess the need for strategic change

The first step in the strategy-making process is to ____.

False

The greater the market commonality, the less intense the direct competition between two companies.

self-designing teams

The highest level of team autonomy is found in ____.

False

The term excessive value appropriated (EVA) refers to the amount by which profits (after expenses) exceed the cost of capital in a given year.

concurrent control, feedback control, and feedforward control

The three basic control methods are ____.

motivation

The three components of ____ are initiation of effort, direction of effort, and persistence of effort.

False

The three levels of waste minimization are waste disposal, waste reduction, and recycling.

preconventional level, conventional level, and postconventional level

The three stages of moral development identified by Kohlberg are ____.

True

The three strategies used to minimize or to adapt to the political risk inherent to global business are avoidance, control, and cooperation.

True

The three techniques that can be used by advocacy groups to influence companies are public communications, media advocacy, and product boycotts.

False

The two approaches to maintaining flexibility in organizations while they plan are outcome-based planning and change-based planning.

True

The two disadvantages associated with product departmentalization are costly duplication and difficulties with cross-departmental coordination.

primary; secondary

The two general categories of stakeholders are ____ stakeholders and ____ stakeholders.

tariff barriers and nontariff barriers

The two general kinds of trade barriers are ____.

True

The two kinds of cooperative contracts are licensing and franchising.

True

The two kinds of external organizational environments are the general environment that affects all organizations and the specific environment that is unique to each company.

True

The two kinds of inequity are underreward and overreward.

grand strategies and the portfolio strategy

The two major approaches to corporate-level strategy are ____.

behavior and output

The two types of objective controls managers use are ____.

False

There are four decisional roles. They are entrepreneur, disturbance handler, resource allocator, and spokesperson.

operational

There are three kinds of ____ plans. They are single-use plans, standing plans, and budgets.

False

There is general agreement regarding what is socially responsible corporate behavior.

True

There is no such thing as a "best" leadership style for all situations and employees.

carefully select and hire new employees establish a specific code of ethics create an ethical climate train employees in how to make ethical decisions (do all of these!!!!!)

To encourage more ethical decision making in an organization, managers should ____.

False

Top managers are the managers responsible for facilitating team activities toward goal accomplishment.

reward followers for good behavior and punish followers for poor behavior

Transactional leaders ____.

True

Transformational leadership is leadership that generates awareness and acceptance of a group's purpose and mission and gets employees to see beyond their own needs and self-interest for the good of the group.

True

Two factors that help companies determine the growth potential of foreign markets are purchasing power and foreign competitors.

True

Upper-level managers may actually spend more time dealing with people than lower-level managers.

are very flexible

Virtual teams ____.

political uncertainty and policy uncertainty

What are the two types of political risk that affect companies conducting global business?

a business' obligation to pursue policies, make decisions, and take actions that benefit society

What is social responsibility?

False

When companies are performing above or better than their strategic reference points, top management is more likely to choose a daring, risk-taking strategy.

False

When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

True

Whereas managers tend to have a short-term perspective, leaders tend to have a long-term perspective.

purchasing power

Which of the following factors helps a company determine the growth potential of a foreign market?

competitive products

Which of the following is NOT a dimension of the political/legal component of the general environment that governs and regulates business behavior?

jointly develop operational plans

Which of the following is NOT a step in the management by objectives (MBO) process?

Synergistic

Which of the following is NOT one of the characteristics of S.M.A.R.T. goals?

client relationships

Which of the following is NOT one of the core job characteristics in the job characteristics model (JCM)?

Select an open-minded group leader.

Which of the following is NOT one of the rules for effective brainstorming?

referents

Which of the following is a basic component of equity theory?

its regular customers

Which of the following is a component of the specific environment that would directly influence a restaurant's day-to-day operation?

inspiring and motivating others

Which of the following is a major concern of leaders (as opposed to managers)?

a situational analysis

Which of the following is a mechanism used to examine external threats and opportunities facing a firm as well as its internal strengths and weaknesses?

Teamwork often allows teams to receive proprietary business information that is only available to managers. Teamwork provides team members with unique work opportunities. Teamwork gives workers a chance to improve their skills. Teamwork gives workers unique leadership responsibilities which enable them to build individual leadership skills. (All of these are reasons why teamwork can be more satisfying than traditional work!!!!!!)

Which of the following is a reason teamwork can be more satisfying than traditional work?

allow employees to personalize their offices use behavioral substitution and behavioral addition select job applicants with appropriate values and beliefs eliminate the company dress code (all of these!!!!!)

Which of the following is a viable strategy for changing organizational culture?

flexibility reduction or elimination of communication barriers increased cooperation among separate departments faster design process (all of these!!!!)

Which of the following is an advantage associated with the use of project teams?

Fiedler's contingency theory

Which of the following is an example of a situational theory of leadership?

concern for production

Which of the following is another term for initiating structure leadership behavior?

weight the criteria

Which of the following is one of the six steps in the rational decision-making process?

self-managed teams employment security high wages contingent on organizational performance sharing information (all of these)

Which of the following management practices can be used by an organization that wants to create a competitive advantage through its employees?

A company's vision refers to its purpose or reason for existing. A company's vision can make its strategic purpose and direction apparent to everyone. A company's vision can help to guide decision making under conditions of environmental uncertainty. A clear and compelling vision tends to raise the level of employee involvement. (All of these statements about a company's vision are true!!!!)

Which of the following statements about a company's vision is true?

Corporate cultures are very difficult to change.

Which of the following statements about corporate cultures is true?

Ethics is the set of moral principles or values that defines right and wrong for a person or group.

Which of the following statements about ethics is true?

Most employees in an organization that uses matrix departmentalization report to two bosses. With matrix departmentalization, there tends to be more cross-functional interaction among employees than in other types of departmentalization. With matrix departmentalization, there needs to be significant coordination between functional and project managers. The most common matrix combines product and functional departmentalization. (All of these statements about matrix departmentalization are true!!!!!!)

Which of the following statements about matrix departmentalization is true?

Mechanistic organizations work best in stable, unchanging business environments.

Which of the following statements about mechanistic organizations is true?

Dysfunctional consequences can occur when companies are categorized.

Which of the following statements about portfolio strategy is true?

Social responsibility can sometimes create significant costs for a company.

Which of the following statements about social responsibility and economic performance is true?

Economic and legal responsibilities play a larger role in a company's social responsibility than do ethical and discretionary responsibilities.

Which of the following statements about social responsibility is true?

The theory does not consider risk factors. The theory is deterministic. The theory may lead to bureaucratic management. This theory recommends that managers do not change strategic reference points. (None of these statements about the Strategic Reference Point Theory is true!!!!!)

Which of the following statements about the Strategic Reference Point Theory is true?

Cohesive groups have lower turnover.

Which of the following statements regarding cohesiveness is true?

honesty

Which of the following traits refers to the extent to which leaders are truthful with others?

franchising

Which of the following types of global organization is most likely to suffer problems associated with being culture bound?

setting objectives consistent with organizational goals or planning and implementing subunit strategies for achieving these objectives

Which of the following typically is NOT performed by top managers?

conceptual skills and the motivation to manage

Which skills increase in their importance to success as managers rise through the managerial ranks?

technical skills

Which type of skills tends to be most important to the success of lower-level managers?

distinctive competencies; core capabilities

While ____ are tangible, ____ are not.

False

While good management is basic to starting and growing a business, once some measure of success has been achieved, good management becomes less important.

True

While the interorganizational process revolves around a central company in modular organizations, a virtual organization is part of a network in which many companies share skills, costs, capabilities, markets, and customers with each other.

True

While transformational leaders use visionary and inspirational appeals to influence followers, transactional leadership is based on an exchange process.

middle managers

Who is responsible for the creation of tactical plans?

Franchising and licensing

____ are both examples of cooperative contracts.

Concurrent

____ control is a method of gathering information about performance deficiencies as they occur.

A competitive analysis

____ involves deciding who your competitors are, anticipating competitors' moves, and determining competitors' strengths and weaknesses.

Direct foreign investment

____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.

Management

____ is defined as getting work done through others.

Organizational process

____ is the collection of activities that transform inputs into outputs that customers value.

Character of the rivalry

____ is the measure of the intensity of competitive behavior between companies in an industry.

Decision making

____ is the process of choosing a solution from available alternatives.

Standardization

____ is the process of solving problems by consistently applying the same rules, procedures, and processes.