MHR

Global Oil has posters hanging in the break rooms, offices, and lobbies of its offices and drilling rigs globally that talk about trust, caring, and teamwork as the driving company values. At the same time, upper management advises all company managers to exhibit these values with employees and while dealing with all stakeholders. The values of trust, caring, and teamwork that Global Oil exhibits are examples of enacted values.

FALSE *enacted values-values and norms actually exhibited in the organization

When the new nurse was hired at the hospital, HR gave her a handout containing a chart that showed a family-tree-like pattern of boxes and lines, the formal lines of authority and the organization's official positions at the hospital. This handout is known as an emergency process and procedures flow chart.

FALSE

When there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks, this is known as integration.

FALSE *integration - tendency of the parts of an organization to draw together to achieve a common purpose

The upper-level managers of Brooms International, a 120-year-old broom and mop manufacturing company, realize that their production facility is outdated. Therefore, they know their competitors, with newer production plants, have gained a competitive advantage over their organization. This is an example of an external weakness.

FALSE *internal

A clan culture is a type of dysfunctional organization that has little collaboration and cohesion among employees, thus worker job satisfaction and commitment are low.

FALSE *internal focus and values flexibilty

If people are resisting because of adjustment problems, management should adopt a negotiation and agreement approach to managing resistance to change.

FALSE *management should adopt a facilitation and support approach to overcoming resistance to change.

A market culture has a strong internal focus, and it concentrates on developing the business and marketing plans and helping employees market their products.

FALSE *strong external focus & values stability and control

Companies that have gone through a rough start-up period may decide to change their structures so that they are less mechanistic to enable greater flexibility.

FALSE *they may decide to change their structures so that they are more mechanistic, with clear lines of authority

In Lewin's model, the three stages of change are initiating, managing, and stabilizing the change process.

FALSE *unfreezing, change, refreezing

Primary appraisals are perceptions of how you are able to deal or cope with a given demand.

FALSE *whether a stressor is irrelevant, positive, or negative

Included in demographic changes are all but one of the following. Which one? a. education b. job dissatisfaction c. gender d. skill level e. immigration

Job dissatisfaction

Christopher's Restaurant and Catering serves delicious vegetarian and vegan dishes. So when the local community became interested in eating a healthier diet, Christopher's benefited. The changing community attitudes are an example of a ___ for Christopher's. a. opportunity b. strength c. weakness d. threat

Opportunity

Organizational design is concerned with an organization developing: a. the most favorable methods of accomplishing both the diversity and synergy plans b. new MBO goals c. the best structures of costs and efficiency that an organization uses to meet goals d. optimal structures of accountability and responsibility to execute its strategies e. important decisions that are suggested by employees

Optimal structures of accountability and responsibility to execute its strategies

Phone Tech, a global phone company, frequently needs to respond quickly to the fast-changing consumer tastes with its phones. Therefore, management has fewer rules and procedures than most organizations, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks and changes in technology. Phone Tech is utilizing a(n) ________ structure. a. mechanistic b. inflexible c. organic d. inelastic e. hierarchial

Organic

The first step of Kotter's change model is to create the guiding coalition.

FALSE *(1) establish a sense of urgency, (2) create the guiding coalition, (3) develop a vision and strategy, (4) communicate the change vision, (5) empower the broad-based action, (6) generate short-term wins, (7) consolidate gains and produce more change, and (8) anchor new approaches in the culture.

A system of shared beliefs and values that develops within an organization and guides the behavior of its members is known as the corporate system.

FALSE *Company/Organizational culture

Nick, the R&D department manager of Precise, a manufacturer of high-quality watches for over 125 years, was told in a management meeting that the company's biggest competitor, Accurate Watches, is introducing a low-cost, yet attractive line of watches that will be sold in Walmart stores. As a result, the top management of Precise is pressuring Nick to lower the production costs on existing products and also to develop a line of watches that can be manufactured inexpensively to be marketed to a wider variety of customers at a much lower price. This is an example of a quality-leadership strategy.

FALSE *Cost-leadership strategy

Key IT Products has decided to retain its computer design, human resources, and marketing departments at its corporate office. But to cut costs and increase speed, it outsources many other functions such as production in Canada, accounting in a neighboring city, warehousing and distribution across town. Many components are manufactured overseas. This is an example of a matrix structure.

FALSE *In the hollow structure, often called the network structure, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster

Upper-, middle-, and lower-level management and non-management workers are the layers of organizational culture.

FALSE *Organizational culture appears as three layers: 1) observable artifacts 2) espoused values 3) basic assumptions

Innovative change is introducing a practice new to the industry, and involves the highest potential for resistance to change.

FALSE *RADICALLY innovative

Sandra and her partner are involved in the time-consuming, yet vital process of choosing among different strategies and altering them to best fit the long-term goals of their preschool for the next three years. This process is known as goals formulation.

FALSE *Strategy formulation

Developing a program focused on individual aspects of an organization for short-term success is the focus of strategic planning

FALSE *comprehensive program for long term success

The employees of XYZ Production enjoy a culture that has developed over time to become a model for local companies. A manager with XYZ mentioned that "Through a careful selection process while hiring and the strong culture we have developed, our employee turnover is one of the lowest our industry." This is an example of how low turnover can be a consequence of a good organizational culture.

TRUE

The systems approach to change is based on the notion that even a small change has a cascading effect throughout an organization.

TRUE

The tendency of the parts of an organization to disperse and fragment is known as differentiation.

TRUE

When Greg and his wife Amy bought a local landscaping business, they wanted to make sure their values became embedded in the organization. Greg and Amy's company, like any organization, can accomplish this by having rites and rituals, watching how they react to each crisis, role modeling, training, and coaching.

TRUE

Often strategy implementation means overcoming resistance by people who feel the plans threaten their influence or livelihood.

TRUE *Delay is the easiest kind of resistance

Changes in technology such as automation of manufacturing processes are considered external changes.

TRUE *Four external changes- demographic characteristics, technological advancements, market changes, and social and political pressures

At Ace Sales, the CEO and HR director are line managers, and the special adviser is an example of a staff position.

TRUE *Line managers have authority to make decisions and usually have people reporting to them, an example of which is a director of operations. Staff personnel have authority functions; they provide advice, recommendations, and research to line managers.

Maria's Mart is a small store located along a major interstate highway that sells gas and diesel, food, souvenirs, DVD movies, and a wide variety of other items. There is even a cafe inside the store. Maria's Mart is an example of a diversification strategy.

TRUE *Operating several businesses to spread the risk

One of the components of an organization's readiness for change is the perceived personal consequences of change.

TRUE *Readiness has four components: (1) necessity for change, (2) top management support for change efforts, (3) personal ability to cope with changes, and (4) perceived personal consequences of change.

Becky, the CEO of an electronics retailer, is looking at the corporate structure that groups employees by specialties, such as store sales, HR, and accounting. This is an example of a functional structure.

TRUE *people with similar occupational specialties are put together in formal groups. This is a quite commonplace structure, seen in all kinds of organizations, for-profit and nonprofit.

According to the BCG matrix, organizations that have high growth and high market share are stars and should be kept.

TRUE *put bcg matrix on here

Jiffy Lube provides only lubricants, but it provides them to all kinds of people with all kinds of motor vehicles. This is an example of how a strategic position can result from serving the few needs of many customers.

TRUE 1) Few needs & many customers 2) Broad needs & few customers 3) Broad needs & many customers

Rites and rituals are: a. a narrative based on true events that emphasize a particular value b. company values included in the code of ethics c. objects, acts, or the quality that conveys meaning to others d. company expectations for employees, such as working hard, ethically, and honestly e. the activities and ceremonies that celebrate important occasions and accomplishments for an organization

The activities and ceremonies that celebrate important occasions and accomplishments for an organization

The vertical hierarchy is also known as: a. the corporate steps b. the network structure c. the X-Y chart d. the chain of command e. an upward graph

The chain of command

Which of the following is not a targeted element of change?

The external environment *The four targeted elements of change: (1) organizational arrangements, (2) social factors, (3) methods, and (4) people.

The owners of Smith's Yard Mart, a family-owned garden center in a rural community, is concerned over the news that a large retailer with a garden center is building a new store on the other side of town. This new retailer is a ___ for Smith's. a. weakness b. intelligence c. threat d. opporunity

Threat

The first step of Lewin's change model is:

Unfreezing

Don knows that one of the reasons people do not return to his electronics store is because of the slow service. This is an example of the organization's ___. a. intelligence b. strengths c. opportunities d. weaknesses

Weaknesses

A coping strategy in which you avoid or ignore stressors is called:

Escape

Espoused values are: a. physical manifestations of organizational culture b. explicitly stated values and norms preferred by an organization c. a narrative based on true events, which emphasize a particular value d. profit and cost expectations stated in the business plan e. the values and norms actually exhibited in the community

Explicitly stated values and norms preferred by an organization

An advantage of centralization is that procedures are not uniform and thus easier to control.

FALSE

In order to be more profitable by increasing sales, Thrifty Bank has an external focus, concentrating on strategic planning, risk taking, and flexibility over stability. This is an example of a hierarchy culture.

FALSE

The formal and informal marketing systems of goods, services, and ideas, along with the customer relationships, that an organization sells are known as its organizational structure.

FALSE

A formal chain of command, standardization of rules and procedures, and use of cross-functional teams and computer networks so that there is frequent communication and coordination of the parts are the means for achieving: a. lower costs through efficiency b. higher profits through goal setting c. differentiation through specialization d. higher sales through analytics e. a common goal through integration

A common goal through integration

A hierarchy of authority is: a. also known as work specialization b. a control mechanism for making sure the right people do the right things at the right time c. a diversity structure used in planning with recruiting, selection, and hiring d. the arrangement of having discrete parts e. also known as a division of labor

A control mechanism for making sure the right people do the right things at the right time

When an organization is able to get and stay ahead in the four areas of (1) being responsive to customers, (2) innovating, (3) quality, and (4) effectiveness, that company can develop___. a. strong employee morale b. an environment with few or no competitors c. increased MBO d. a sustainable competitive advantage e. company diversity

A sustainable competitive advantage

Elly and Sylvia, owners of Organic Foods, do not have a formal policy about dress code and work procedures because they see their company as a family place that is enjoyable to work for. Elly and Sylvia believe that if you treat employees like family, the company will do well and grow. These beliefs by the owners represent the core values of their organization's culture, and are known as: a. basic assumptions b. family codes c. rites and rituals d. code of ethics e. observable artifacts

Basic assumptions

Someone who is a catalyst in helping organizations to deal with old problems in new ways is called a:

Change agent

Employees and customers are treated like a family at Bayou Seafood Cafe. Paul and Betsey, the owners, work to encourage unity to increase their employees' job satisfaction and commitment. At their cafe, Paul and Betsey have built a: a. goal-driven agenda b. bureaucracy culture c. clan culture d. market culture e. adhocracy culture

Clan culture

A method for stress reduction that involves identifying and replacing irrational and maladaptive thoughts with those that are rational or logical is:

Cognitive restructuring

Pedro, CEO of a successful IT company, is constantly reading press releases, ads, and news articles about his competition, and he regularly checks information about new competitive products and visits trade shows to study his competition. Pedro is involved in ___. a. corporate spying b. competitive intelligence c. management by observation d. TQM e. environmental observation

Competitive intelligence

Organizations using a matrix structure: a. establish a hierarchy in which employees report to only one supervisor b. contain multiple overlapping command structures, in which employees report to several managers c. utilize teams or workgroups with few lines of authority d. centralize authority into a single person e. contain two command structures, in which some people actually report to two bosses

Contain two command structures, in which some people actually report to two bosses * In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures, vertical and horizontal. For example, a marketing person may report to both the vice president of marketing and to the project manager.

Employees apply their individual efforts in a ___ to fulfill a common purpose. a. coordinated effort b. unity of command c. delegation d. division of labor e. chain of command

Coordinated effort

Mountain Rescue Inc. sells emergency safety and rescue products to ski patrols and rescue workers at prices that are below those of its competitors, who offer a larger line of products and focus on broader markets. Mountain Rescue Inc. is pursuing a ___ strategy. a. cost-leadership b. focused-differentiation c. cost-focus d. narrow e. differentiation

Cost-focus

Symbols, stories, heroes, and rites and rituals are ways in which ____ is most often transmitted to employees. a. goals b. objectives c. culture d. plans e. ethics

Culture

The second step in the strategic- management process is to look at where the organization stands and see what is working and what could be different to maximize efficiency and effectiveness in achieving the organization's mission. This step is the process of completing a ___. a. ethical and diversity evaluation b. grand strategy c. organizational vision statement d. current reality assessment e. company synergy assessment

Current reality assessment

The stages of OD are, in order:

Diagnosis, intervention, evaluation, feedback

Making formal statements, holding rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts to a crises, being a role model, and giving rewards, promotions, and bonuses are some of the teaching methods that organizations can utilize to: a. follow legal requirements b. write a strategic plan c. conduct formal market research d. perform competitive analysis e. effect corporate change

Effect corporate change *changing organizational culture

Della, the new CEO of Sky Advertising, has been with the firm for over 25 years. She was picked by the board to turn the 85-year-old agency around and to do so, Della wants to bring back some old ideas that previously worked at Sky. She plans on having managers and veteran employees instruct each other about the organization's chosen values, beliefs, and expectations through holding some of the old rites and rituals, retelling stories about company legends, bringing back training and coaching, and once again having quarterly reward ceremonies. The things Della wants to do are an example of: a. embedding culture b. TQM c. a value stabilizing plan d. MBO e. decentralizing authority

Embedding culture

A major advantage/major advantages of decentralization are that managers are: a. able to see how all of the parts of the company work together b. inclined to make slower, more deliberate decisions c. incentivized to run decisions by their supervisors first d. encouraged to solve their own problems e. more apt to coordinate with other divisions in making important decisions

Encouraged to solve their own problems

Sue keeps a close eye on her company's internal and external environment to discover possible opportunities for new products and threats from competition, as soon as possible. This is an example of ___. a. management by observation b. the observation approach c. competitive intelligence d. environmental scanning e. corporate spying

Environmental scanning

IKEA employees are expected to work hard, inspired by an anecdote from their Swedish founder, Invar Kamprad, in which he told how he was berated by his father for failing repeatedly to get out of bed to milk the cows on his family's farm. Then one day he got an alarm clock. "'Now by jiminy, I'm going to start a new life,' he determined, setting the alarm for twenty to six and removing the 'off button.'" Invar Kamprad is an example of a: a. hero b. trend c. fable d. urban legend e. key employee

Hero

The Safety Committee, a temporary team, was established to make the workplace a safer place. Members of the committee still work in their departments full-time, but meet twice a month for a few hours as a committee. This is an example of a: a. common purpose b. horizontal design c. modular design d. vertical design e. multipurpose design

Horizontal design *In a horizontal design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries. Team members still have their full-time functional work responsibilities and often still formally report to their own managers above them in the functional-division hierarchy.

The focus of the refreezing stage of Lewin's change model is:

Integration of the new behavior or attitude

A hierarchy culture has a: a. internal focus and values stability and control b. strong external focus and values stability and control c. continual focus on efficiency, cost cutting, and outsourcing d. internal focus and values innovation and creativity e. external focus and values flexibility

Internal focus and values stability and control

Which of the following is an accurate conclusion from the "Organizational Culture and Organizational Effectiveness: A Meta-Analytic Investigation of the Competing Values Framework's Theoretical Suppositions" study involving the culture of 1,000 companies? a. adhocracy cultures produce better results b. changing the organizational culture generally boosts financial performance c. managers can use elements of these cultures to boost innovation and quality d. an organization's culture does not matter e. employees prefer market cultures

Managers can use elements of these cultures to boost innovation and quality

Peter, the owner of Happy Burger, is involved in the company's daily decisions and has established procedures for every task. The company rules are clearly specified in the handbook, and Peter also believes in close supervision of all employees. Happy Burger is a(n) ________ organization.

Mechanistic *in a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

A 2013 survey found that among managers, the use of ___ is popular. a. mission and vision statements b. a synergy agenda c. organizational diversity d. TQM e. an autocratic discipline program

Mission and vision statements

Voluntary collectives with the purpose of advancing their members' interests are known as: a. volunteer co-ops b. for-profit organizations c. mutual-benefit organizations d. non profit organizations e. mutual associations

Mutual-benefit organizations

There are two kinds of spans of control are: a. hierarchy and non hierarchy b. tall and short c. flat and broad d. narrow and wide e. tall and hollow

Narrow and wide (or tall and flat)

Hand-written welcome notes are an example of: a. basic assumptions b. core values c. observable artifacts d. enacted values e. espoused values

Observable artifacts

Manner of dress, awards, myths and stories told about the company, and rituals and ceremonies are: a. invisible artifacts of that industry's culture and values b. espoused values of organizational culture c. enacted values of organizational culture d. observable artifacts of organizational culture e. basic assumptions about organizational culture

Observable artifacts of organizational culture

According to the competing values framework, clan, adhocracy, market, and hierarchy are: a. MBO levels of achievement b. organizational values c. industry cultural standards d. organizational cultures e. organizational norms

Organizational cultures

Time Warner has different divisions for magazines, movies, recordings, cable television, and so on. The Warner Bros. part of the empire alone has divisions spanning movies and television, a broadcast network, retail stores, theaters, amusement parks, and music. Time Warner is an example of an organization with

Product divisions

The recommended way to look at resistance to change is to view it as caused by:

Recipient characteristics, change agent characteristics, and the relationship between the change agent and the recipient

The last step of Lewin's model of change is:

Refreezing

A defensive strategy is also known as a... a. fixed plan b. retrenchment strategy c. aggressive approach d. stability strategy e. growth strategy

Retrenchment strategy *Reduction in the organization's efforts

A company with authority centralized in a single person, a flat hierarchy, few rules, and low work specialization is a characteristic of an organization with a: a. functional structure b. simple structure c. horizontal design d. team-based design e. hollow structure

Simple structure

Regarding the findings from a SWOT analysis, organizational strengths are ___. a. environmental factors that the organization may exploit for competitive advantage b. means that give a specific industry an advantage in a down economy c. external opportunities that a company can take advantage of d.skills and capabilities that give a company advantages in executing its strategies e. MBO skills that should be emphasized

Skills and capabilities that give a company advantages in executing its strategies

A(n) ________ outlines the organization's long-term direction and the actions necessary to achieve planned results.

Strategic plan

Rashid, the CEO of Top Productions, was telling his new vice president of accounting that "In the past I had resistance to new ideas by people who felt that one of our plans threatens their influence or jobs. So when you tell your collections department that we just hired a collection agency to handle bad debt, you may have to sell your collections manager and his supervisors on using the agency and that nobody is going to be laid off." Selling middle and supervisory managers on changes to overcome their resistance is often a necessary part of ___. a. strategy implementation b. strategy formulation c. operational control d. strategic control e. reality assessment

Strategy implementation

What is the assessment of the external environment? What are the critical issues facing the business? Can the business execute the strategy? According to Bossidy and Charan, these are some of the questions that should be addressed in a _____. a. code of ethics b. mission statement c. strong strategic plan d. diversity agenda e. value statement

Strong strategic plan

According to Harvard Business School professor Michael Porter, strategic positioning "means performing different activities from rivals, or performing similar activities in different ways" to achieve sustainable competitive advantage.

TRUE

Adaptive change is reintroducing a familiar practice

TRUE

Competitive intelligence means gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately

TRUE

Dave, the HR manager, was meeting with Amy, the new controller. He mentioned to her that "If you glance left and right on the line of that chart, you will see horizontal specialization, the different jobs and work specializations." The chart that Dave was showing to Amy is an organization chart.

TRUE

Excessive interpersonal conflict between an organization's top managers and its board of directors is a sign from an internal source that change is needed.

TRUE

Joe, the owner of Ace Product Sales, emphasizes a professional culture. He is strict when it comes to the way his employees dress in the office and while visiting customers, saying "Our image and success is based on how people view us, so the way we dress is a priority." In addition, Joe strongly believes in awarding his employees during monthly ceremonies. Joe said, "We reward our employees so they feel good about what they are doing, which is the mark of a professional organization." This is a good example of how organizational culture is expressed in observable artifacts.

TRUE

Managers can change organizational culture by maintaining rites and rituals; giving rewards, promotions, and bonuses; setting company goals; and establishing performance-measurable and controllable activities

TRUE

Once Instructor Services, an IT company, analyzes the company's strengths, weaknesses, opportunities, and threats, managers will be able to do forecasting to develop a long-term strategy.

TRUE

One of the demographic changes organizations need to respond to is the increasing diversity of the workforce and customer base.

TRUE

Paulina works as an order-taker at a fast food restaurant. She does not cook food, or even package the final order, but inputs the order and takes payment. Paulina reports directly to the shift manager, and seldom interacts with the general manager. This is an example of a mechanistic organization.

TRUE

Stress is an interaction between person and environmental factors.

TRUE

The OD process works in similar ways to a medical diagnosis of a sick patient in that it goes through the phases of diagnosis, intervention, evaluation, and feedback.

TRUE

The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life are known as rites and rituals.

TRUE

The arrangement of having discrete parts of a task done by different people is known as division of labor

TRUE

The changing stage of Lewin's model involves learning and doing things differently.

TRUE

Porter's competitive strategies of cost-leadership and differentiation focus on ___ markets, and the cost-focus and focused-differentiation strategies focus on ___ markets. a. wide; narrow b. diverse; narrow c. specific; broad d. narrow; wide e. growth; specific

Wide; narrow