Principles of Management Final Exam

You advertise heavily for a manager for your new, high-tech computer-chip factory in the Midwest, but you simply cannot find a trained person. You are encountering a modern version of what historical problem

????

What is a multinational corporation (MNC)?

A corporation, such as IBM, ExxonMobil, and Nestlé, that operates on a worldwide scale, without significant ties to any one nation or region

Which of the following characteristics relates to a compressed work week?

A four-day (or shorter) period in which an employee works 40 hours

What is the World Trade Organization (WTO)?

A global association of member countries that promotes free trade

Which of the following characteristics relates to an organizational chart?

A graphic display of the official lines of authority and communication within the organization

What is an organization?

A group of individuals who work together to achieve the goals or objectives that are important to these individuals

What is meant by an authentic leader?

A leader who is passionate about company objectives, models corporate values in the workplace, and forms strong relationships with stakeholders

Which of the following characteristics relates to situational leadership theory?

A leadership model whose premise is that a leader's style should be contingent on subordinates' competence and commitment

What is path-goal theory?

A model concerned with how a leader affects employees' perceptions of their personal and work goals and the paths to goal attainment

Which of the following characteristics best relates to management?

A set of activities designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing enviroment

Which of the following characteristics relates to global business (globalization)?

A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business

What is a network organization?

A structure, primarily a command unit, that does not make a good or provide a service but instead coordinates agreements and contracts with other organizations to produce, distribute, and sell products

What is meant by brainstorming?

A technique in which group members spontaneously suggest ideas to solve a problem

What is flextime?

A work schedule that allows employees to choose their starting and ending times as long as they are at work during a specified time period

The psychologist who developed the idea that human needs are arranged in a hierarchy of the importance is

Abraham Maslow

Effective use of an organization's resources means

Achieving the intended result

The basic test of capitalism were set forth in a well-known book, The Wealth of Nations, written by

Adam Smith

You believe that America's health care system will fix itself if the government simply leaves it alone. Your belief would probably be supported by which of the following persons?

Adam Smith

Both Henri Fayol and Max Weber were major contributors to the classical approach to management known as

Administrative management

What term describes the universality of management as a function that can be applied to all organizations

Administrative management

Which of the following refers to power that is derived by virtue of a person's association with someone else who has some source of power?

Affiliative power

Which of the following characteristics relates to the nature of the management environment?

All of those factors that affect the operation of the organization

What is the system approach to management theory?

An approach to management theory that views organizations and the environments within which they operate as sets of interrelated parts to be managed as a whole in order to achieve a common goal

What is meant by a turbulent environment?

An environment wherein customer or other stakeholder demands are continuously changing or the primary technology of the firm is constantly being improved and updated

When Henry Mintzberg referred to the manager as the "nerve center" and the "focal point" in his or her organization, he was talking about the manager in

An informational role

Which of the following characteristics relates to motivation?

An inner drive that directs behavior toward goals

In an organizational chart, the higher the level of the box in the chart, the higher the level of

Authority

Which of the following refers to the right to give work orders to others in the organization and is associated with a position within an organization, not with the individual occupying that position?

Authority

What term describes the design of jobs based on the view that workers are independent parts of the production process whose individual characteristics should be taken into account in forming jobs?

Behavioral approach to job design

In analyzing their external environment, most organizations find that it presents

Both threats and oppertunities

What term describes the pattern of concentrating authority in a relatively few, high-level positions?

Centralization

What term describes an approach to management that stresses the manager's role in a formal hierarchy of authority and focuses on the task, machines, and systems needed to accomplish the task efficiently?

Classical Approach

Which of the following refers to the design of jobs based on the principles of division of labor and specialization?

Classical approach to job design

Subordinate resistance to the use of power is most likely when which of the following sources of power is used?

Coercive

Which of the following refers to an organizationally based source of power derived from a leader's control over punishments or the capacity to deny rewards?

Coercive power

What are potential new competitors?

Companies not currently operating in a business's industry but that have a high potential for entering the industry

What are learning organizations?

Companies that facilitate the learning of their members and continuously transform themselves

What name is given to other organizations that produce similar, or in some cases identical goods or services?

Competitors

Within a ____________orientation type of control system, when employees understand that their behaviors will be met with consequences, either good or bad, they have ample opportunity for ambiguous personal interpretation of how they should act within the company

Compliance

When a manager reasons well, processes information intelligently, and evaluates which strategic option is potentially most profitable, he or she is displaying

Conceptual Skills

When your company, Powerful Personal Computers, lays out five million dollars to hire away a woman from a soft-drink firm as your new CEO, it is a good bet that you are paying these big bucks for her

Conceptual Skills

Which of the following refers to the intellectual abilities to process information and make accurate decisions about the work group and the job tasks

Conceptual Skills

What term describes a person's faith that his or her decisions are reliable and good?

Confidence

Motivational theories that assume that workers are motivated by the desire to satisfy needs, and then seek to identify what those needs are, are called

Content theories

What term describes a group of theories that assume that workers are motivated by the desire to satisfy needs and that seek to identify what their needs are?

Content theories

The work of W. Edwards Deming is most appropriately classified in which theory of management?

Contingency

What term describes the suggestion that successful leadership requires matching leaders with primarily stable leadership styles to the demands of the situation?

Contingency theory

When Reebok has some of its athletic shoes produced by a Korean company, but the Reebok name still appears on the shoes, this illustrates

Contract manufacturing

China's arrangement with the Congo to barter infrastructure in exchange for metals is an example of a

Countertrade agreement

The beliefs, traditions, philosophies, rules, and heroes shared by the members of the organization referred to as the organization's

Culture

What name is given to when authority is dispersed to several positions at various levels in the organization?

Decentralization

What term describes the process of choosing among alternative courses of action to resolve a problem?

Decision making

What is determined from patterns among an individual's predispositions, such as which situations to avoid, what kind of jobs an individual enjoys, which things he or she dislikes, how an individual communicates, how an individual approaches problems, and how he or she makes decisions?

Decision styles

Which of the following refers to the assignment of work activities and authority to a subordinate?

Delegation

The fact that Americans are becoming older and more affluent is an example of

Demographic characteristics

What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price?

Differentiation

When a firm offers a unique good or service to a customer at a premium price, it is following the business-level strategy of

Differentiation

What term describes the purchase of overseas production and marketing facilities, in which a company may control the facilities outright, or it may be the majority stockholder in the company that controls the facilities?

Direct Investment

You own and operate your own hamburger stand. One of your employees makes the hamburger patties, a second grills them, a third slaps them in buns, and a fourth sells them to customers. You are utilizing what management concept or theory?

Division of labor, or specializazation

Which of the following is NOT a component of the hedgehog concept?

Does your organization have the core competencies

By requiring products to be sold for not less than what it costs to produce them, the United States is attempting to prohibit

Dumping

Which of the following refers to using resources in a way that produces a desired result?

Effectively

Which of the following characteristics relates to the North American Free Trade Agreement (NAFTA)?

Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactured products among the three countries

What term describes accomplishing the objectives with a minimum of resources?

Efficiently

The person primarily associated with the Hawthorne studies was

Elton Mayo

What name is given to the capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically?

Emotional intelligence

What name is given to the most effective managers, who engage in both dimensions of leadership behaviors by getting employees involved in the operation of their departments or divisions in a positive and constructive manner, setting general goals, providing fairly loose supervision, and recognizing employees' contributions?

Employee-centered leaders

The task environment includes all of the following except

Enviromentalists

What term describes a theory stating that the extent to which people are willing to contribute to an organization depends on their assessment of the fairness of the rewards they will receive in exchange?

Equity theory

Which of the following characteristics relates to the World Bank?

Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries

Which of the following refers to a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective?

Ethics Audit

Which of the following refers to a comprehensive evaluation of a firm's ethics and compliance program and its ethical decisions used to determine whether the program is effective?

Ethics audit

Which of the following refers to an economic and political union of 28 member nations that are located primarily in Europe?

European Union (EU)

What term describes restrictions on the amount of a particular currency that may be bought or sold?

Exchange controls

The ratio at which one nation's currency can be exchanged for another nation's currency or gold is the

Exchange rate

What name is given to the ratio at which one nation's currency can be exchanged for another nation's currency or for gold?

Exchange rate

What name is given to the theory that states that motivation depends not only on how much a person wants something but also on the person's perception of how likely he or she is to get it?

Expectancy theory

What term describes power or influence derived from a person's special knowledge or expertise in a particular area?

Expert power

If a leader wants a high degree of commitment from his or her subordinates, which sources of power are most likely to lead to that?

Expert, referent, and charismatic

What name is given to the sale of goods and services to foreign markets?

Exporting

According to Micheal Porter, only established industries such as the soda and airline industry can benefit from the use of the 5 forces model.

FALSE

Which of the following refers to organizations owned either privately by one or more individuals or publicly by stockholders?

For- profit companies

What term describes the arrangement of positions, as shown on an organizational chart, that dictates where work activities are completed, where decisions should be made, and the flow of information?

Formal Organization

Your sales manager tells you that your widget sales are dropping dramatically, and you should drop the line. Your son-in-law says that widget sales are doing OK and that you should increase production. You increase production. You are engaging in

Framing

What name is given to a form of licensing in which a company agrees to provide a name, logo, methods of operation, advertising, products, and other elements associated with the company's business, in return for a financial commitment and the agreement to conduct business in accordance with the company's standard of operations?

Franchising

You watch a painter paint a house, and you videotape her movements. Later, you make specific recommendations for reducing her painting motions so she can be more efficient, and you also design a movable ladder for her to reduce fatigue. You are a disciple of

Frank and Lillian Gilbreth

Which of the following refers to the grouping of jobs according to similar economic activities, such as finance, production and operations, and marketing?

Functional Structure

What term describes the broad, complex factors that affect all organizations?

General environment

The fact that U.S. businesses now frequently engage in international trading relations is an illustration of what dimension of the general environment?

Global

What name is given to the final result that a firm wishes to achieve?

Goal

What term describes a theory that recognizes the importance of goals in improving employee performance?

Goal-setting theory

What are strategic goals?

Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services

In a situation where the customer can choose an identical product from a large number of financial institutions, such as a Visa credit card, the customer's influence on the organization's operations is

Great

Which of the following refers to the market value of a nation's total output of goods

Gross domestic product (GDP)

Which of the following refers to the phenomenon that occurs when cohesive "in-groups" let the desire for unanimity, or consensus, override sound judgment in generating and evaluating alternative courses of action?

Groupthink

What term is used to describe the product life cycle stage characterized by dramatic increases in the product's market share?

Growth

Managers tend to be more concerned about ethical issues that

Have immediate consequences

Jay Wilkinson suggests these type employees cause 90 % of all the problems in organizations.

High performers who don't live organizational values.

Understanding external factors is important to managers, equally important is knowing ____________

How to respond to the factors

_____ of a plan is where the organization goes from the "thinking" mode to the "doing" mode.

Implementation

Of all the steps in the decision making process, the step that is arguably most crucial and difficult is

Implementing the decision

Which of the following refers to a tax levied by a nation on goods bought outside its borders and imported into the country?

Import Tariff

If unethical behavior receives great reward and little punishment, then the likelihood that unethical behavior will recur is

Increased

Also known as moral philosophies, what term describes sets of principles that describe what a person believes are the right way to behave?

Individual Values

What term describes the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems?

Infastructure

What is meant by leading?

Influencing others' activities to achieve set goals

What name is given to the relationships among positions that are not connected by the organizational chart?

Informal organization

The basic mission of which of the following is to oversee the international monetary system and help ensure stable currencies and exchange rates throughout the world?

International Monetary Fund (IMF)

When a manger uses skills that are necessary to work with other people, such as communicating and listening he or she is using

Interpersonal Skills

You buy a thousand shares of Ralston Purina common stock because you just know it is going to go up in value. The next day, it plunges ten dollars. You have probably relied too much on your

Intution

Because many countries do not permit foreigners to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with the host country by forming a

Joint Venture

Drucker predicted that _____ would become increasingly important in the future, a prediction that became reality in the twenty-first century

Knowledge workers

What name is given to individuals who work primarily with information or who develop and use knowledge in the workplace?

Knowledge workers

The manager of the Boston Red Sox delivers a fiery speech just before the game about why it is critically important to beat the Yankees. He is...

Leading

What term describes a trade arrangement in which one company--the licensor--allows another company--the licensee--to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee, or royalty?

Licensing

Mass-production techniques of standardized products

Lowered production costs, which led to lower prices and expanded markets

Which of the following refers to the field of management that includes the study and use of mathematical models and statistical methods to improve the effectiveness of managerial decision making

Management Science

Which of the following refers to a systematic statement, based on observations, of how management process might best occur, given stated underlying principle

Management Theory

What name is given to individuals who make decisions about the use of the organization's resources, and are concerned with planning, organizing, leading, and controlling the organization's activities so as to reach its objectives?

Managers

________ believed capitalism would collapse upon itself and socialism was the way to a prosperous culture

Marx

At the age of 45, having made your fortune in the hamburger business, you sell the business, retire, and then take up full-time the hobby you love: painting. Whose theory or concept best describes your decision?

Maslow's self-actualization

In the TedTalk "Moral Operating Systems", Damon Horowitz discusses Plato's philosophy. Plato believed ethics were like ____________

Math

What name is given to a structure in which members of different functional departments are chosen to work together temporarily on a specific contract or project?

Matrix Structure

When a product has been on the market for many years, such as the automobile, and its growth is slow at best, what stage of the product life cycle is it said to be in?

Maturity

"Improving people's lives by providing gas and electric services in a sustainable way -- affordable, reliable and clean" is an example of

Mission Statement

Which of the following refers to the sum total of employees' attitudes toward their jobs, employer, and colleagues?

Morale

Your company's work teams have won national awards for making the finest widgets ever seen. Your loyal and productive workers have never been more proud of their work. What important characteristic of motivation is probably at an all-time high at your company?

Morale

For a company to maintain ethical behavior, its policies, rules, and standards to encourage ethical decision making

Must be enforced by rewards for proper behavior and punishments for unacceptable behavior

Which of the following characteristics relates to dumping?

Occurs when a country or business firm sells products at less than what it costs to produce them

What term describes an international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy, and that recommend and promote policies to improve the well-being of consumers and societies across the world?

Organization of Economic Cooperation and Development (OECD)

What term describes a person's ability to satisfy or deny satisfaction of another's need, based on a formal contractual relationship between an organization and the individual?

Organizational power

Which of the following characteristics relates to reward power?

Organizational power that stems from a person's ability to bestow rewards

When the manager of the Boston Red Sox uses the scouting, player development, and travel departments to make plans for an upcoming serious, he is...

Organizing

When an organization carries out the tasks of manufacturing a product or products, but contracts with other organizations to do all the supporting functional tasks, such as marketing, it is said to be

Outsourcing

You are the executive vice president of Banana Computer, Inc. You have a competitive machine, but your major competitor has the benefit of large-scale production, making its products less expensive to manufacture. In order to remain price-competitive, you send your parts and subassemblies to Mexico for the final stage of assembly, thereby taking advantage of

Outsourcing

________ occurs when an organization transfers manufacturing, services, and other functions to countries where labor and supplies are less expensive.

Outsourcing

The company that was founded on with strong CSR principles is

Patagonia

Which of the following characteristics best relates to resources?

People, equipment, finances, and data used by an organization to reach its objectives

What is the global dimension?

Pertaining to the general environment, those factors in other countries that affect the organization

What term describes the relationship of individuals, their rights, and their property to the state

Political Forces

The Sierra Club makes a major effort in Washington to pass a law banning the logging of old-growth forest in Oregon through its political action committee (PAC). It is operating in the

Political element of the political-legal dimension

What term is based on the idea that certain individuals or groups will be able to influence others to achieve their goals?

Political model of decision making

Within the general environment, which of the following refers to the nature of the relationship between various areas of government and the organization?

Political- legal dimension

An American firm's refusal to enter into a binding contract with a Russian oil firm because of the lack of clarity of Russian law in this area is based on the American firm's analysis of which dimension of the general environment?

Political-legal dimension

Which of the following refers to a person's capacity to influence the behavior and attitudes of others?

Power

Which of the following characteristics relates to information power?

Power that is a result of having access to important information that is not common knowledge, or of having the ability to control the flow of information to and from others

Which of the following refers to those who have a formal and/or contractual relationship with the firm, such as customers, suppliers, employees, regulators, investors, and communities?

Primary stakeholders

Which of the following characteristics relates to business ethics?

Principles, values, and codes of conduct that define acceptable behavior in business

Which of the following refers to the difference between a desired situation and the actual situation?

Problem

The motivational theories that try to determine "how" and "why" employees are motivated to perform are called

Process Theory

Which of the following refers to a set of theories that try to determine "how" and "why" employees are motivated to perform?

Process theories

When a manager decides to reorder inventory or establishes skill requirements for a certain job, she is making what type of decision?

Programmed

What name is given to decisions made in response to situations that are routine, structured, and fairly repetitive?

Programmed decisions

What name is given to an interpretation of the purpose of life, stat that, instead of merely waiting on earth for release into the next world, people should pursue an occupation and engage in high levels of worldly activity so that they can fulfill their calling?

Protestant ethic

When managers allow greater participation with regard to the design and implementation of projects, conflict within work groups is

Reduced

What name is given to personal power that results when one person identifies with and admires another?

Referent power

What name is given to a process theory that assumes that behavior may be reinforced by relating it to its consequences?

Reinforcement theory

When an organization gives someone authority, it expects something in return, namely

Responsibility

The condition under which managers are least confident about their decision making and most prone to err is

Risk

Which of the following refers to the condition that exists when decision makers must rely on incomplete, yet reliable information?

Risk

What name is given to a person's willingness to take risks when making decisions?

Risk propensity

What name is given to the evaluation of the organization's internal strengths and weaknesses and the opportunities and threats associated with the business's external environment?

SWOT Analysis

Which of the following refers to the decision maker's decision to choose the first alternative that appears to resolve the problem satisfactorily?

Satisficing

What term describes groups that have a less formal connection to the organization, such as environmentalists, special interest groups, and the media?

Secondary stakeholders

You are the international marketing manager for Brides & Grooms, Inc., a designer and manufacturer of wedding apparel. This year's fashions are featuring white for the entire wedding party. You scheduled this year's Asian kick-off for next Monday in Tokyo, when you discover that white is the Japanese color of mourning. What did you overlook?

Social and cultural differences

What is the theory that states that employees learn not only through direct experience but also through observation and personal qualities?

Social learning theory

What name is given to the obligation a business assumes to maximize its positive impact and minimize its negative impact on society?

Social responsibility

What term is used to describe the actual number of subordinates over which a position has authority?

Span of Control

What name is given to an environment in which stakeholder demands, and specifically customer desires, are well understood and relatively steady over time?

Stable environment

Which of the following refers to a person or group that can affect or is affected by, and organization's goals or the means to achieve those goals?

Stakeholder

What name is given to the degree to which a firm understands and addresses stakeholders demands?

Stakeholder orientation

Which of the following refers to a partnership formed to create competitive advantage on a worldwide basis?

Strategic Alliance

What term describes goods or services that may be used in place of those furnished by a given business?

Substitutes

The Union Electric Company, a St. Louis utility, buys a large shipment of coal from Peabody Coal Company for use in its coal-fired plants. Peabody is one of Union Electric's

Suppliers

You own a gourmet restaurant in Atlanta. You send your chef, Pierre LePeachtree, to a major international restaurant-owners' meeting so he can find out what some of the hot new entrees are around the world. You are being sensitive to the

Task Enviroment

The parties it deals with, such as suppliers, customers, and organizations producing substitute goods, are all a part of a firm's

Task enviroment

Karl Marx is mostly known for his writing in the book _____

The Communist Manifesto

Which of the following characteristics relates to positive reinforcement?

The act of strengthening a desired behavior by rewarding it or providing other positive outcomes

Which of the following characteristics relates to a business-level strategy?

The area of responsibility usually assigned to the divisional-level managers

Which of the following characteristics relates to the sociocultural dimension?

The aspect of the general environment that includes the demographics, attitudes, and the values of the society within which an organization operates

Which of the following characteristics relates to certainty?

The condition that exists when decision makers are fully informed about a problem, its alternative solutions, and its respective outcomes

What is meant by job specialization?

The division of work into smaller, distinct tasks

Strategic planning differs from general planning in that it focuses on

The external environment and long-term goals

Which of the following characteristics relates to departmentalization?

The grouping of related jobs to form an administrative unit--department, area, or center

Which of the following characteristics relates to bounded rationality?

The idea that people have limits to their rationality

What is meant by legitimate power?

The influence that comes from a person's formal position in an organization and the authority that accompanies that position

Which of the following characteristics relates to technical skills?

The knowledge and ability to accomplish the specialized activities of the work group

What is meant by geographic division structure?

The organization of divisions by geographic region

Your fellow employees regularly take home company supplies such as paper, pens, tape, and glue for their personal use. Although you feel it is wrong to do so, you begin taking home company supplies too. The strongest influence on your behavior is

The overall moral climate of your organization

Which of the following characteristics relates to leadership?

The process of influencing the activities of an individual or a group toward the achievement of a goal

What is meant by corporate strategy?

The scope and resource deployment components of strategy for the enterprise as a whole

What is an embargo?

The suspension of trade in a particular product by the government

Which of the following characteristics relates to framing?

The tendency to view positively presented information favorably and negatively presented information unfavorably

Which of the following relates to organizational culture?

The values, norms, and artifacts shared by members of an organization

What is meant by organizational structure?

The way managers group jobs into departments and departments into divisions

What term describes the assumption that people are naturally lazy, must be threatened and forces to work, have little ambition or initiative, and do not try to fulfill any need higher than security needs at work?

Theory X

What name is given to the assumption that people naturally want to work, are capable of self-control, seek responsibility, are creative, and try to fulfill higher-order needs at work?

Theory Y

One of Dan Pink's main points was

There is a disconnect between what science knows and what business does

Which of the following is NOT part of Jim Collin's "First Who" concept?

They put their best people on the biggest challenges

Which of the following characteristics relates to controlling?

Those activities that an organization undertakes to ensure that its actions lead to achievement of its objectives

Which of the following characteristics relates to motivational factors?

Those aspects of a job that relate to the content of the work, including achievement, recognition, the work itself, involvement, responsibility, and advancement

What are maintenance factors?

Those aspects of a job that relate to the work setting, including adequate wages, comfortable working conditions, fair company policies, and job security

The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of

Trading company

Which of the following refers to a more traditional approach in which managers engage in both task- and consideration-oriented behaviors in an exchange manner?

Transactional leadership

Which of the following characteristics relates to a joint venture?

When a company that wants to do business in another country finds a local partner (occasionally, the host nation itself) to share the costs and operation of the business

The role of management in fostering ethical behavior in an organization is extremely important because managers

Who ask employees to do something wrong have a powerful influence

The ______ loans money to countries throughout the world for reconstruction and development, and also makes loans to poorer countries for infrastructure and social services purposes.

World Bank

You own a computer company, and you launch a joint venture with a competitor to create a new super-speed tablet. Unfortunately, you do not realize that your operating system is totally incompatible with that of the other company's, and the new venture fails miserably. This is the result of

Your failure to cope with the technological dimension of the general environment

When a nation pays for imports with its own goods, it is using

a countertrade agreement

You are the president of Henry Motor Corp., and you see the great potential markets in Eastern Europe for personal transportation. Your plan is to purchase an old Soviet tank plant and convert it into an auto factory. The Russian government welcomes your plan, which is an example of

a direct investment

When we can identify a symptom of a problem, it is helpful and significant because then we know that

a problem exists.

In SWOT analysis, an ability or attribute that a company possesses that may give it a distinctive competence is called

a strenght

When a department in an organization has a high level of absenteeism, we are dealing with

a symptom of a problem, not the problem itself

Poor morale is most likely to cause

absenteeism

The First Lady's primary source of power is

affiliative

For the step of generating alternative courses of action to be effective, decision making must

allot enough time to generate creative alternatives.

What is meant by capitalism

an economic system where in the natural law of supply and demand and free competition within the marketplace will efficiently regulate the flow of resources within a society

The United States' prohibition of the importing of Cuban cigars is an example of

an embargo

Frederick Taylor

analyzed jobs to improve efficiency

Because most decision situations involve some degree of risk and uncertainty, they quite regularly lead to

anxiety and stress

The other side of disastrous escalation of commitment is

bailing out of a course of action too soon

For businesspersons to be ethical, they must strive for success while

being fair, just, and trustworthy

The group decision technique designed to maximize the generation of creative alternatives to a problem is

brainstorming

Developing widespread electric charging stations for electric cars is an illusion of

building technological infrastructure

A positive contribution of the informal relationships in the organization's operation is

communication and interaction.

Two factors that go hand in hand in managerial decision making and may have positive or disastrous organizational effects are

confidence and risk propensity.

What term describes a business-level strategy aimed at achieving the overall lowest cost structure in an industry?

cost leadership

According to the text, a blueprint of acceptable behavior that is passed from one generation to the next is called

culture

According to Dan Ariely, when individuals are faced with complex decisions, the _________option is often chosen.

default

The difference between an ethic and a law is that a law

defines a minimally acceptable standard of conduct

The first step in strategic planning is

determining the mission and strategic goals.

Your saltwater taffy, which you produce right next to the Pacific Ocean in Orchard Park, Oregon, has a national reputation. You sell all you can make, and people drive hundreds of miles to your shop to buy it. You have a

distinctive competence

MidAmerican Energy Holdings Company has doubled its wind energy capacity by installing windmills and high-tech batteries to make it a "cleaner" utility company. In high-tech renewable energy, this company has a

distinctive competence.

Which of the following refers to the relationship of people to resources

economic forces

When a performance evaluation is based on favoritism and political opportunity, rather than on merit, an ethical issue has arisen in the area of

employee relations

The examination of input-output ratios, employee contributions, and the perception of fairness is most associated with

equity theory

When a manager persists in a failing course of action and discounts negative information, he or she is engaging in

escalation of commitment

You fire two of your employees for drinking on the job. Soon you have to fire four more, then six more. You threaten remaining employees with legal action if they drink on the job. Your policy is based on

escalation of commitment

Three important trends that are impacting business today are e-business, global organizations, and

ethics and social responsibility

There is increasing evidence that transformational leaders

exist at all levels in organizational hierarchies and in a broad range of organizations.

In expectancy theory, if a person believes that extra effort will lead to high performance, such as a bonus or commission, we are talking about the person's

expectancy

Professors, computer geniuses, mechanics, airline pilots, and ship captains supposedly have a lot of

expert power

Jay Wilkinson suggests the best way to deal with "haters" is to not hire them. If, its too late, and you already have them in your organization he suggests _____

fire them

The organizational chart shows the structure of the ________, which is the arrangement of positions that dictates where work activities are completed, where decisions should be made, and the flow of information.

formal organization

When Henri Fayol said that management's role is to "forecast and plan, to organize, to command, to coordinate, and to control," he was stating the

functional definition of management.

As defined in the text, organizations are groups of individuals who work together to achieve

goals and objectives important to them

One of the significant conclusions that has been drawn from the Hawthorne studies is that

human relations and the social needs of workers are a critical variable in management.

Experts generally agree that the first step in decision making is

identifying the problem.

Arliey suggests that shredding one's work is as impactful as

ignoring work

You make a brilliant executive decision to use robots to manufacture your high-tech widgets. You buy ten robots, then tell your workers about your decision. They immediately go out on strike. You have failed to

implement the decision

The purchase of goods and services from a foreign source defines

importing

You are an apple farmer and spokesperson for the American Apple Association. You are faced with severe dumping from apple growers in Transoceania, where apples grow wild and the people pay to pick apples as a form of recreation. To counter this threat, you are going to lobby Congress and the president to

impose a protective import tariff

A negative effect of the informal organization, particularly in times of crisis, may well be

inaccurate information

The real cause of the increase in output at Western Electric's Hawthrone plant was

increased attention paid to workers

The basic assumption of the classical approach to job design is that division of labor and job specialization

increases an organization's overall productivity

According to Hofstede's cultural dimensions theory, _____ tend to be self-reliant and place a high level of importance on freedom and ambition, while _____ place more value on the team than the individual

individualists; collectivists

Giving employees tickets to "cash in" for a paid day off when they get their projects done well ahead of the deadline is an example of the creative use of

informal rewards

As it relates to decision making, risk may be said to be the condition that exists when

information is reliable, but incomplete.

You are a computer whiz, and you have installed some software that monitors all incoming and outgoing company emails. You have no formal understanding of leadership theory, but you clearly understand

information power

One of the keys to successful implementation of a decision in an organization is to

involve individuals affected by it in every step of the process.

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in Moscow, Russia, the company

is exporting the lenses

The classic model of decision making

is prescriptive; it says how managers should make decisions.

Although regulations and laws sharply limit a leader's ability to use coercive power, it is a fair assessment that

it is still too commonly used in business settings

Which of the following characteristics relates to a servant leader?

leader who leads by example and forms strong relationships with employees

The phrase caveat emptor means

let the buyer beware

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This arrangement is known as

licensing

You are the producer of Western Denim brand blue jeans. The pants are in high demand in Pangia; however, shipping costs, tariffs, and trade restrictions are insurmountable. As a last resort, you have entered into an agreement to let a local Pangian manufacturer use your name, materials, and trademark to produce the jeans in exchange for a royalty. This is a

licensing agreement

At even the largest and most affluent corporation, the strategic management process begins with

limited resources

A good way to judge a decision is

look at the situation from several viewpoints

Social responsibility is the obligation a business has to

maximize its positive impact on society and minimize its negative impact

When financial institutions such as J.P. Morgan reward employees with bonuses and other financial incentives for making risky decisions, they may find that their attempts to motivate employees

may sometimes have negative effects on the organization.

The primary concern of the behavioral approach to job design is that work needs to be

more complex and challenging

The _____ conflict that exists within an organization, the _____ the perception of the ethicalness of the work group.

more; lower

To achieve organizational objectives, employees must have the ability, tools, and _____ to perform their jobs.

motivation

In the systems approach to management, an open system is usually thought of has having

much interaction with external enviroment

A corporation that operates in several countries without significant ties to any of them is a

multinational

Dan Pink says that tying incentives to work

narrow focus

Sue wants to be warm, but she is not; she has a

need

A decision to build a new plant, acquire another company, create a new position, enter into a strategic alliance, invest in enhancing operations, or develop a new product is a ______ type of decision.

non-programmed

In SWOT analysis, an environmental circumstance that is potentially beneficial for the firm is called

oppertunity

New employees learn who is important in a company and who is not by knowing its

organizational structure

Reward power, which stems from a person's ability to bestow rewards, is

organizationally based.

What name is given the transfer of manufacturing or other functions (such as data processing) to countries where labor and supplies are less expensive?

outsourcing

You manage a semiprofessional baseball team, and you call up the Toronto Blue Jays and challenge them to a million-dollar match, winner take all. You suffer from

overconfidence and excessive risk propensity.

Businesses must first be responsible to their _____ who are primarily concerned with earning a profit.

owners

When extra effort is required from employees and managers have no control over rewards and punishments and close supervision is not practical

personal sources of power are essential.

While open discussion of an ethical issue may not eliminate all ethical problems in an organization, discussion will usually

promote trust and learning in an organization

What term describes the act of weakening or eliminating an undesired behavior by providing negative consequences?

punishment

A personal source of power that a leader possesses when he or she is admired by employees who identify with the leader is called

referent power

While you don't like it, you hire a production manager today who you know is dependable, even though in three weeks you might be able to hire a person who is potentially brilliant. In decision-making language, you have

satisficed

You admire Sam Walton because he founded Wal-Mart when everyone said that discount stores in small cities would not work. You admire his

self-confidence and intuitive ability.

An employee's confidence that he or she can perform a task or behavior successfully is called

self-efficacy.

Most businesspeople engaged in international trade underestimate the importance of

social and cultural differences

Which external factor is the hardest to forecast

socio-cultural

The translation of product names can be a crucial factor in the success or failure of a foreign marketing effort because of

sociocultural differences

The agreement between Japan's Sony Corporation and the Swedish telecommunication company Ericsson to make mobile phones is an example of a

strategic alliance

The organizational form or structure that an organization takes needs to be consistent with the

strategy it intends to pursue

The primary weakness of the matrix structure is

that each team member reports to two bosses

The birth of the human relations approach to motivation can be traced to

the Hawthorne studies

Herzberg's two-factor theory proposes that

the absence of maintenance factors may dissatisfy workers

In a decision making situation where the decision maker satisfies,

the first satisfactory alternative is chosen

The greater a person's exposure to unethical behavior, the greater is the likelihood that

the person will behave unethically

One of the justified criticisms of the classical model of decision making is that it is

too unrealistic and time consuming to be applied to real situations.

Generally speaking, there are three conditions that affect decision making: certainty, risk, and

uncertainty.

With regard to leadership and management, most American companies today appear to be

under-led and over-managed.

In applying reinforcement theory, one of the problems in punishing unacceptable behavior is that punishment may produce

undesirable long-term side effects.

According to research, the most important factor affecting daily ethical decisions at work is the

work group or the perceived ethicalness of the work group.