Understanding Management Test: Chapter one

41. has become the new imperative, despite the need for companies to control costs in today's economy. a. Technology b. Outsourcing c. Innovation d. Communication e. Delegation

C. Innovation

1. Making a choice is the most significant part of the decision-making process. a. True b. False

False

138. According to the BCG Matrix, the cash cow has a large market share in a rapidly growing industry. a. True b. False

False

reflects the values of relationships, cooperation, group decision making, and quality of life.

Femininity

139. List the three examples of direct investing mentioned in your text.

Joint venture, wholly owned foreign affiliate, and greenfield venture.

99. A(n) is a broadly stated definition of basic business scope and operations that distinguishes the organization from others of a similar type.

Mission Statement

102. Goals that define the outcomes that major departments must achieve in order for the organization to reach its overall goals are known as goals.

Tactical

68. Which of the following is most important at lower organizational levels? a. Planning skills b. Human skills c. Conceptual skills d. Technical skills e. None of these

Technical skills

3. If organizations don't successfully change and innovate, they die. a. True b. False

True

3. Programmed decisions are decisions that are made for situations that have occurred often in the past and allow decision rules to be developed to guide future decisions.

True

31. Plans provide a standard of assessment. a. True b. False

True

35. Prevention and preparation are the two stages of crisis management. a. True b. False

True

35. Social values greatly influence organizational functioning and management styles. a. True b. False

True

38. Principle-based statements define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees. a. True b. False

True

4. Despite the need for companies to control costs in today's economy, innovation has become the new imperative. a. True b. False

True

4. Large international firms typically are called multinational corporations. a. True b. False

True

40. Brainstorming uses a face-to-face interactive group to spontaneously suggest a wide range of alternatives for decision making. a. True b. False

True

40. Managers work with planning experts to develop their own goals and plans in decentralized planning. a. True b. False

True

43. In a high performance culture, organizations put high emphasis on both culture and solid business performance as drivers of organizational success. a. True b. False

True

44. Quadrant A represents organizations that are focused primarily on bottom-line results and pay little attention to organizational values. a. True b. False

True

46. The cultural leader articulates a vision for the organizational culture that employees can believe in and that generates excitement. a. True b. False

True

5. Gerald's Groceries and Marty's Market decided to merge their operations, something neither company has tried before. This would be considered a nonprogrammed decision. a. True b. False

True

5. Managers carry a tremendous responsibility for setting the ethical climate in an organization and can act as role models for others. a. True b. False

True

5. Planning cannot tame a turbulent environment. a. True b. False

True

5. The late famed management theorist Peter Drucker is often credited with creating the modern study of management. a. True b. False

True

6. A product change is a change in the organization's product or service outputs. a. True b. False

True

6. An ethical dilemma arises in a situation concerning right or wrong when values are in conflict. a. True b. False

True

6. Authority is the right to use resources, make decisions and issue orders in an organization. a. True b. False

True

6. In the 1970s, the Japanese taught the U.S. companies how to boost profits by keeping inventories lean through JIT. a. True b. False

True

137. Under conditions of , managers know what goal they wish to achieve, but information about alternatives and future events is incomplete.

Uncertainty

140. A normative decision making model defines how a manager make decisions.

Should

108. plans are developed to achieve a set of goals that are not likely to be repeated in the future.

Single-Use

127. List the four criteria for ethical decision-making described in the book.

Utilitarianism, individualism, moral-rights, and justice.

90. is a narrative based on true event that is repeated frequently and shared by organizational employees. a. Symbol b. Slogan c. Story d. Hero e. Culture

Story

161. Which of the following is a Porter's competitive strategy? a. Differentiation b. Bargaining power of buyers c. Bargaining power of suppliers d. Threat of substitute products e. Potential new entrants

a. Differentiation

86. The profit-maximizing view of economic responsibility is advocated by . a. Milton Friedman b. Arthur Anderson c. Donald Trump d. Warren Buffett e. Steve Jobs

a. Milton Friedman

46. When senior managers at Gap, Inc. decided to become the number one service-quality clothing company in the world, they were engaging in the management function of . a. planning b. organizing c. leading d. controlling e. dreaming

a. Planning

125. Which of the following is a decision-making technique in which people are assigned to express competing points of view? a. Point-counterpoint b. Devil's advocate c. Debate d. Groupthink e. Brainwriting

a. Point-counterpoint

113. The American firm joining in the joint venture: a. faces lower risk than if it were using a wholly-owned foreign affiliate. b. enjoys greater control than is it were using the wholly-owned affiliate. c. can anticipate a lower cost than a company that uses global outscoring. d. all of these. e. none of these.

a. faces lower risk than if it were using a wholly-owned foreign affiliate.

94. Harvest International is anticipating changes in their production procedures. You have been assigned to identify potential barriers to the change and suggest solutions to these barriers. You would use: a. force field analysis. b. barrier analysis. c. negotiation. d. assessment of goals. e. all of these.

a. force field analysis.

77. Based on the notion that organizations are dealing with a very turbulent and uncertain external environment, more organizations are requiring to perform boundary-spanning activities. a. top leaders b. middle managers c. line managers d. all employees e. suppliers

all employees

55. Which of the following means extending the search for and commercializing new ideas beyond the boundaries of the organization and even beyond the boundaries of the industry? a. An idea champion b. Open innovation c. A new-venture team d. An idea incubator e. An inventor

b. Open innovation

51. Programmed decisions are made in response to organizational problems. a. unusual b. recurring c. significant d. minor e. unique

b. recurring

110. Flash Card Inc. recently underwent a significant company-wide change that involved revision of its manufacturing and leadership processes. The result of this was a stronger emphasis on horizontal coordination. This level of change is referred to as . a. reorganization b. reengineering c. e-engineering d. strategic planning e. corporate structuring

b. reengineering

66. When managers know which goals they wish to achieve, but information about alternatives and future events is incomplete, the condition of exists. a. risk b. uncertainty c. ambiguity d. certainty e. problematic

b. uncertainty

114. Which of the following is not an approach to structural design that reflects different uses of the chain of command? a. Matrix approach b. Team-based approach c. Process approach d. Divisional approach e. Virtual network approach

c. Process approach

50. decisions are associated with decision rules. a. Nonprogrammed b. Unique c. Programmed d. Ill-structured e. Novel

c. Programmed

56. are the broad statements of where the organization wants to be in the future. a. Operational goals b. Tactical goals c. Strategic goals d. Operational goals e. Tactical plans

c. Strategic goals

72. decisions are associated with conflicts over goals and decision alternatives, rapidly changing circumstances, fuzzy information, and unclear links among decision elements. a. Nonprogrammed b. Programmed c. Wicked d. Conventional e. Irrational

c. Wicked

39. Successful change requires that organizations be capable of both creating and implementing ideas, which means the organization must learn to be . a. cordial b. rightsized c. ambidextrous d. compliant e. intra-focused

c. ambidextrous

71. People making decisions based on an internal set of beliefs that has more meaning to them than the expectations of others: a. are in the preconventional level of moral development. b. are in the conventional level of moral development. c. are in the principled level of moral development. d. do not care what people think of them. e. none of these.

c. are in the principled level of moral development.

98. Communication and education tactic to change implementation should be used when: a. initiators clearly have power. b. group has power over implementation. c. change is technical. d. users need to feel involved. e. group will lose out in change.

c. change is technical.

66. Which variation of new venture teams is described as a small separate, informal, highly autonomous, and often selective group that focuses on breakthrough ideas for the business? a. An idea champion b. A sponsor c. A new-venture team d. A skunkwork e. An inventor

d. A skunkwork

48. Which of the following is NOT a characteristic of a creative individual? a. Conceptual fluency b. Undisciplined exploration c. Persistence and focused approach d. Authorization and dependent e. All of these are characteristic of a creative individual

d. Authorization and dependent

81. Which of the following is the intervention stage of organization development in which individuals experiment with new workplace behavior? a. Refreezing b. Restating c. Unfreezing d. Changing e. Jumping

d. Changing

59. When Troy measures his employees' performance and compares their performance against the goals he set for them, he is performing which of these functions? a. Staffing b. Leading c. Organizing d. Controlling e. Planning

d. Controlling

144. Which of the following is a business activity that an organization does especially well relative to its competition? a. Strategy b. Synergy c. Cash cow d. Core competence e. Multidomestic

d. Core competence

65. You are violating which of these goal characteristics when you attempt to create goals for every aspect of employee behavior? a. Specific and measurable b. Linked to rewards c. Defined time period d. Cover key result areas e. Challenging but realistic

d. Cover key result areas

69. Which of the following refers to a major shift in the norms, values, attitudes, and mindset of the entire organization? a. Organization change b. Organization development c. People change d. Culture change e. Artifact change

d. Culture change

156. Which of the following portfolio categories is made up of poor performers who command only a small share of a slow growth market? a. Star b. Cash cow c. Question mark d. Dog e. Cat

d. Dog

108. The is a single European currency that replaced 12 national currencies and unify a huge marketplace. a. Mark b. Franc c. MFN d. Euro e. Pound

d. Euro

89. Which of these reflects a cultural preference for cooperation, group decision making, and quality of life? a. Individualism b. Collectivism c. Masculinity d. Femininity e. Power distance

d. Femininity

59. Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk obtained in operating international businesses? a. Direct investment/franchising b. Wholly owned foreign affiliate/countertrade c. Exporting/licensing d. Franchising/licensing e. All of these

d. Franchising/licensing

46. is a vital part of good management because decisions determine how the organization solves its problems, allocates resources, and accomplishes its goals. a. Organizing b. Competitive visioning c. Proper alignment d. Good decision making e. Leadership

d. Good decision making

154. Which of these is true about the cash cow? a. It generates tremendous profits in a rapidly growing industry. b. It has a small market share in a rapidly growing industry. c. It has a small market share in a slow growth industry. d. It has a large market share in a slow growth industry. e. It is generally a dead business that should be divested.

d. It has a large market share in a slow growth industry.

158. Which of these is true about the dog division? a. It has a large market share in a rapidly growing industry. b. It has a large market share in a slow growth industry. c. It has a small market share in a rapidly growing industry. d. It has a small share of a slow growth market. e. It has a moderate market share in a rapidly growing industry.

d. It has a small share of a slow growth market.

95. _____ schedule materials to arrive at a company just as they are needed on the production line. a. Mass customization system b. LIFO system c. First-in-First-out system d. Just-in-time inventory system e. Last-in-First-out

d. Just-in-time inventory system

60. Carly's Clothes, Inc. manufactures children's clothes. Which of the following departments for Carly's Clothes can be considered a line department? a. Finance department b. Human Resources department c. Research and development department d. Manufacturing department e. Marketing department

d. Manufacturing department

64. Language, values, religion, and education all describe which dimension in the international environment? a. Economic b. Legal c. Political d. Sociocultural e. Technological

d. Sociocultural

72. Jacob, a customer service representative for AB Retailers, has seven levels of management between himself and the company's CEO. In contrast, his friend Rhonda, a customer service representative for YZ Retailers, has only four levels of management between her and the company CEO. Compared to YZ, Jacob's company has what type of organizational structure? a. Narrow b. Wide c. Flat d. Tall e. Identical

d. Tall

103. Which of the following is a contemporary approach to structural design in departmentalization? a. Functional b. Divisional c. Traditional divisions d. Teams e. Geographic-based

d. Teams

49. Which of the following is the individual who must make an ethical choice in an organization? a. The symbolic leader b. An obstructive manager c. The defensive individual d. The moral agent e. An authoritarian manager

d. The moral agent

75. Political risk is defined as an organization's risk of due to politically based events or actions by host governments. a. loss of assets b. managerial control c. earning power d. all of these e. managerial control and earning power only

d. all of these

118. People with a(n) style usually are concerned with the personal development of others and may make decisions that help others achieve their goals. a. classical b. analytic c. logical d. behavioral e. conceptual

d. behavioral

88. Symbols, stories, and heroes are important because they: a. entertain executive level management. b. address the concerns of government. c. acquaint customers to the organization. d. communicate the significant values of an organization. e. free organizations from legal obligations.

d. communicate the significant values of an organization.

73. Regarding the levels of personal moral development, the majority of managers operate at the level. a. preconventional b. autocratic c. postconventional d. conventional e. transformative

d. conventional

165. If Javier organizes with a horizontal matrix structure, some potential advantages that he could anticipate include all of the following, EXCEPT: a. a more efficient use of resources. b. greater flexibility and adaptability to a changing environment. c. development of both general and specialist management skills. d. decreased need for coordination among managers. e. all of these are potential advantages.

d. decreased need for coordination among managers.

89. Intuition is based on , but lacking in . a. conscious thought; practicality b. experience; applicability c. a solid analysis; applicability d. experience; conscious thought e. thought-process; guts

d. experience; conscious thought

67. In international operations, the economic environment includes: a. shared knowledge, beliefs and values. b. political risks. c. social organizations. d. infrastructure. e. tariffs, quotas, and taxes.

d. infrastructure.

53. Exporting, licensing, and direct investing are called strategies because they represent alternative ways to sell products and services in foreign markets. a. globalized b. expansion c. retrenchment d. market entry e. concentrated business

d. market entry

81. Kent works at the Tick Tock, Inc. He has two bosses, one a functional manager and the other a divisional manager. Tick Tock, Inc. has a structure. a. functional b. divisional c. geographic d. matrix e. product

d. matrix

51. A statement that identifies distinguishing characteristics of an organization is known as a(n): a. goals statement. b. values statement. c. income statement. d. mission statement. e. competitive-edge statement.

d. mission statement.

99. A(n) would outline the procedures Larry should use in this and other ethical situations. a. principle-based statement b. code of ethics c. corporate credo d. policy-based statement e. ethics committee

d. policy-based statement

62. Bobby, a product manager, wants to increase the market share of his product. He is unsure about how to go about it, not knowing for sure how costs, price, the competition, and the quality of his product will interact to influence market share. Bobby is operating under a condition of . a. risk b. ambiguity c. certainty d. uncertainty e. brainstorming

d. uncertainty

60. A foreign subsidiary over which an organization has complete control is called a: a. joint venture. b. licensing agreement. c. franchise. d. wholly owned foreign affiliate. e. foreign venture.

d. wholly owned foreign affiliate.

147. With decision authority is pushed downward to lower organization levels.

decentralization

92. Which of the following is the process of forming alliances among managers during the decision making process? a. Networking b. Socializing c. Coalition building d. Satisficing e. Passing the buck

c. Coalition building

approach describes how managers actually make decisions, where as approach defines how a decision-maker should make decisions. a. Normative; descriptive b. Normative; classical c. Descriptive; normative d. Descriptive; administrative e. Normative; administrative

c. Descriptive; normative

61. refers to the concept that different treatment of people should not be based on arbitrary characteristics. a. Procedural justice b. Compensatory justice c. Distributive justice d. Organizational justice e. Moral-justice

c. Distributive justice

87. Which of the following would be considered a visual representation(s) of a company's corporate culture? a. All department heads have an executive office. b. Each department has an award plaque for employee of the month. c. All employees are dressed in professional business attire. d. Top level executives drive company owned sports car. e. All of these.

e. All of these.

47. Artful Innovations Inc. operates with open channels of communication and an established suggestion system that encourages brainstorming and freewheeling discussions. Artful Innovations can best be described as a(n) type of organization. a. experimental organization b. cooperative organization c. entrepreneurial organization d. disruptive organization e. creative organization

e. creative organization

43. The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries is called . a. standardization b. industrialization c. globalization d. internationalism e. linguistic pluralism

globalization

120. When it comes to economic development, a currently developing country is also called a(n) .

less-developed country

85. If Bradley Hak is responsible for maintaining information links both inside and outside organizations by using mail, phone calls, and conducting meetings as daily activities, he would be considered a: a. figurehead. b. liaison. c. negotiator. d. monitor. e. spokesperson.

liaison.

175. In the BCG matrix, the dog has market share and business growth rate.

low, low

166. List the five approaches to departmentalization.

: Vertical functional, divisional, horizontal matrix, teams, and virtual network.

supply chain

A supply chain is a network of multiple businesses and individuals that are connected through the flow of products or services.

means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable.

Ambiguity

administrative principles approach

Another major subfield within the classical perspective that focuses on the total organization rather than the productivity of the individual worker. The major contributor to this approach was Henri Fayol (1841?1925), a French mining engineer.

10. Operational plans and goals are those that focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals. a. True b. False

False

10. The raw materials that organizations use to produce its outputs are provided by customers. a. True b. False

False

11. The growth of quantitative decision techniques that use computers has reduced the use of the classical approach. a. True b. False

False

134. Opportunities are characteristics of the internal environment that have the potential to help the organization achieve or exceed its strategic goals. a. True b. False

False

153. is important because decision making is a continuous, never ending process.

Feedback

112. In the role, managers seek and receive information, scan periodicals and reports, and maintain personal contacts.

Monitor

decisions involve situations that have occurred often enough to enable decision rules to be developed and applied in the future.

Programmed

100. Broad statements describing where the organization wants to be in the future are called .

Strategic goals

97. and plans are the responsibilities of middle managers.

Tactical Goals

1. The right to advise, recommend, and counsel in the staff specialists' area of expertise is included in staff authority. a. True b. False

True

10. When an organization is goal-directed, it is designed to achieve some outcome, such as making a profit. a. True b. False

True

19. The basic management functions of planning, organizing, leading, and controlling are the same whether a company operates domestically or internationally. a. True b. False

True

1. A(n) structure is most appropriate when the external environment is stable.

Vertical

78. All functions in a specific country or region report to the same division manager in divisions. a. functional b. matrix c. geographic-based d. teams e. networks

c. geographic-based

70. In using MBO, objectives should be set by the: a. supervisor. b. employee. c. supervisor and the employee jointly. d. accounting department. e. top management.

c. supervisor and the employee jointly.

48. is primarily responsible for strategic goals/plans. a. Middle management b. Board of directors c. Consultants d. Top management e. Lower management

d. Top management

97. When trying to overcome the resistance for change, which approach is best suited when change is technical? a. Coercion b. Top management support c. Negotiation d. Participation e. Communication

e. Communication

56. Monitoring activities and making corrections are part of: a. organizing. b. planning. c. leading. d. staffing. e. controlling

e. Controlling

130. Which of the following steps would Vaughn not take in making his decision? a. Sense and recognize the decision requirement b. Implement the chosen alternative c. Create a set of alternatives d. Diagnose and analyze problem causes e. Evaluation & feedback

e. Evaluation & feedback

82. Salta Communications is a global telecommunications company that has operations on four continents. The CEO's direct supervisors include VPs for the North American South American, European, and the Asian divisions. Salta can best be described as using what organizational structure? a. Network b. Matrix c. Functional d. Divisional e. Geographic

e. Geographic

106. Which of the following symbolizes to all employees that the change is important for the organization? a. Education b. Coercion c. Participation d. Negotiation e. Top management support

e. Top management support

94. The model closely resembles the real environment in which most managers and decision-makers operate. a. normative b. administrative c. descriptive d. classical e. political

e. political

98. A(n) occurs when the organizational accomplishment is less than established goals. a. strength b. threat c. diagnosis d. opportunity e. problem

e. problem

93. A represents a phrase or sentence that succinctly expresses a key corporate value. a. symbol b. stories c. culture d. hero e. slogan

slogan

86. An object, act, or event that conveys meaning to others is referred to as a: a. symbol. b. slogan. c. story. d. hero. e. culture.

symbol.

1. Business tends to be more personal in China. a. True b. False

true

1. Managers must understand no plan is perfect, but should grow and change to meet new conditions. a. True b. False

true

31. In the figurehead role, the manager performs ceremonial and symbolic duties. a. True b. False

true

15. An approach to innovation that emphasizes shared development of innovations among several departments is referred to as the horizontal linkage model. a. True b. False

True

27. The confusion and frustration caused by the dual chain of command is a major problem of the matrix structure. a. True b. False

True

28. A manager forwards information to other organization members in the disseminator role. a. True b. False

True

28. Important stakeholders in corporations include the government and the community. a. True b. False

True

15. The right of free consent, the right to privacy, and the right of freedom of conscience are rights that should be considered in the moral rights approach. a. True b. False

True

16. A person who sees the need for and champions productive change within the organization is called an idea champion. a. True b. False

True

16. Goals are typically stated in quantitative terms. a. True b. False

True

bureaucratic organizations approach

A systematic approach developed in Europe that looked at the organization as a whole, a subfield within the classical perspective. Max Weber (1864?1920), a German theorist, introduced most of the concepts on bureaucratic organizations.

16. Intuition is a quick apprehension of a decision situation based on past experience but without conscious thought. a. True b. False

True

78. Managers shift gears quickly and therefore, the average time spent on any one activity is less than . a. nine minutes b. an hour c. one workday d. a half hour e. a half day

9 minutes

16. To perform effectively, all managers must possess conceptual, human, and technical skills, though the degree of each skill necessary at different levels of an organization may vary. a. True b. False

True

131. The visual representation of an organization's structure is called the .:

: organization chart

179. List the four components of a SWOT analysis.

A SWOT includes strengths, weaknesses, opportunities, and threats.

gantt chart

A bar graph that measures planned and completed work along each stage of production by time elapsed.

empowerment

A management practice of sharing information, rewards, and power with employees, facilitating rather than controlling employees, so that they can take initiative and make decisions to solve problems and improve service and performance.

76. Which of the following includes the manager identity? a. Specialist, performs specific tasks b. Gets things done through own efforts c. An individual actor d. A network builder e. Works relatively independently

A network builder

17. The goal of the European Union is to create a powerful single market system for Europe's millions of consumers. a. True b. False

True

148. means that decision authority is located near the top of the organization.

Centralization

132. is the process of identifying problems and opportunities and then resolving them.

Decision making

means that all the information the decision-maker needs is fully available.

Certainty

110. justice argues that individuals should be compensated for the cost of their injuries by the party responsible.

Compensatory

is the management function concerned with monitoring employees' activities, keeping the organization on track toward its goals, and making corrections as needed.

Controlling

49. Which of these is NOT a part of an organization's general environment? a. Technological b. Economic c. Competitors d. Legal-political e. Sociocultural

Competitors

177. With a(n) strategy, the organization aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors.

Cost leadership

23. Training is one of the most frequently used approaches to changing people's mindsets. a. True b. False

True

143. A(n) approach describes how managers actually make decisions, not how they should.

Descriptive

157. A(n) is assigned the role of challenging the assumptions and assertions made by the group.

Devil's advocate

108. justice requires that different treatment of people not be based on arbitrary characteristics.

Distributive

150. The structure occurs when departments are grouped together based on organizational outputs.

Divisional

25. A country's physical facilities that support economic activities make up its infrastructure. a. True b. False

True

25. A joint venture involves a strategic alliance or program by two or more organizations. a. True b. False

True

118. Briefly define the characteristics of an effective goal.

Effective goals are precisely defined and allow for measurable performance. They focus on the key result areas that contribute most to desired performance. They should be challenging but not unreasonably difficult. Finally, they should specify the time period that they cover and they should be tied to valued rewards.

is the code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.

Ethics

123. A group of executives assigned to oversee the organization's ethics by ruling on questionable issues and disciplining violators is referred to as a(n) .

Ethics Committee

115. List four reasons why planning generally positively affects a company's performance?

Explicit goals and plans can serve the following functions: resource allocation, source of motivation and commitment, guide to action, rationale for decisions, and set a standard of performance

145. A(n) structure has a wide span, is horizontally dispersed, and has fewer hierarchical levels.

Flat

25. Approximately 20% of American adults, according to your text, never reach the postconventional level of moral development. a. True b. False

True

162. refers to services that are perishable and, unlike physical products, cannot be stored in inventory.

Intangible output

is the management of business operations conducted in more than one country.

International management

26. A key benefit of management by objectives is that it aligns individual and departmental goals with company goals. a. True b. False

True

104. The specific results expected from departments, work groups, and individuals are the goals.

Operational

105. plans are developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans.

Operational

exists when managers see potential of enhancing performance beyond current levels.

Opportunity

108. A social entity that is goal directed and deliberately structured is called a(n) .

Organization

130. The framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated is called .

Organization

121. is the criterion traditionally used to classify countries as developed or developing.

Per capita income

68. is normally used to classify countries as developed or developing. a. Exchange rates b. Interest rates c. Gross national product d. Per capita income e. Inflation rates

Per capita income

109. justice requires that rules should be clearly stated and consistently and impartially enforced.

Procedural

151. is the willingness to undertake risk with the opportunity of gaining an increased payoff.

Risk propensity

145. means that decision-makers choose the first solution alternative that satisfies minimal decision criteria.

Satisficing

170. Describe service technology.

Service technology can be defined as having intangible input and direct contact with customers.

social media programs

Social media programs include company online community pages, social media sites such as Facebook or LinkedIn, microblogging platforms such as Twitter and China's Weibo, and company online forums.

51. GreenTech Candies is a U.S.-based company that manufactures and distributes candy bars and snack foods globally. The company sources most of its cocoa and sugar from South American companies. This business relationship highlights which dimension of the task environment? a. Customers b. Competitors c. Labor market d. Culture e. Suppliers

Suppliers

organizational efficiency

The amount of resources used to achieve an organizational goal.

162. Briefly describe the assumptions underlying the classical model of decision making.

The classical model of decision making is based on four assumptions. First, the decision-maker attempts to accomplish goals that are known and agreed upon. In addition, problems are specified and defined precisely. Second, the decision-maker attempts to gather complete information, going for a condition of certainty. Third, the criteria for evaluating the alternatives are known and the decision-maker will select the alternative that maximizes the economic return to the organization. Fourth, the decision-maker is rational and relies upon logic to make sense of the information available.

Synergy

The concept of synergy says that the whole is greater than the sum of its parts. The organization must be managed as a whole.

human relations movement

The human relations movement was based on the idea that truly effective control comes from within the individual worker rather than from strict, authoritarian control.

137. The question mark exists in a new, rapidly growing industry but has only a small market share, according to the BCG Matrix. a. True b. False

True

139. The dog, according to the BCG Matrix, is a poor performer. a. True b. False

True

138. List three examples of a country's infrastructure.

Transportation facilities such as railroads and airports; energy-producing facilities such as utilities and power plants; and communication facilities such as telephone lines and radio stations.

155. In the approach of structural design, departments are independent, contracting services to the central hub for a profit.

Virtual Network

86. Melissa is a manager at InStylez Clothing. Her job is very complex and she feels that she does not have enough time to identify and/or process all the information she needs to make decisions. Melissa's situation is most consistent with which of the following concepts? a. Bounded rationality b. The classical model of decision making c. Satisficing d. Brainstorming e. Scientific management

a. Bounded rationality

61. By definition, an organization is considered because it is made up of two or more people. a. efficient b. a social entity c. effective d. goal-directed e. deliberately structured

a social entity

141. is the process managers use to transfer authority and responsibility to positions below them in the hierarchy.

delegation

102. The nature of management is to cope with and far-reaching challenges.

diverse

51. Which of the following is not a function of management? a. Plan b. Control c. Organize d. Lead e. Performance

e. Performance

64. For a widget manufacturing company, worker-hours per widget is a measure of: a. organizational effectiveness. b. organizational performance. c. organizational efficiency. d. organizational structure. e. none of these.

organizational efficiency.

175. Identify the three factors that typically influence centralization versus decentralization.

(1) Greater change and uncertainty in the environment are usually associated with decentralization. (2) The amount of centralization or decentralization should fit in the firm's strategy. (3) In times of crisis of company failure, authority may be centralized at the top.

114. List the four major activities that must occur in order for MBO to succeed.

(1) Set goals, (2) develop action plans, (3) review progress, and (4) appraise overall performance.

101. The involvement culture has a(n) focus on the involvement and participation of employees to rapidly meet changing needs from the environment. a. external b. internal c. structural d. competitive e. technological

. internal

102. How many nations signed on for negotiation when GATT was created in 1947? a. 15 b. 23 c. 28 d. 40 e. 57

23

100. Which of the following cultures is suited to organizations that are concerned with servicing specific customers in the external environment but without the intense need for flexibility and rapid change? a. Adaptability culture b. Clan culture c. Achievement culture d. Consistency culture e. None of these

Achievement culture

95. Since not-for-profit organizations do not have a conventional , managers may struggle with the question of what constitutes results and effectiveness. a. hierarchy b. bottom line c. information system d. decision-making process e. structure

Bottom Line

139. The model of decision making is based on economic assumptions.

Classical

141. In many respects, the model represents an "ideal" model decision-making and can't usually be attained by real people in real organizations.

Classical

147. is the process of forming alliances among managers.

Coalition Building

teams consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems.

Cross-Functional

161. Compare decision conditions of certainty, risk, uncertainty, and ambiguity.

Decisions made under the condition of certainty have a high possibility of success. All of the information that the decision-maker needs is available. The decision-maker knows the alternatives, the objectives, and the outcomes. Risk is a situation where the decision-maker knows the alternatives and the objectives. However, the outcomes are not known with certainty, but the probabilities of the outcomes are known. Under conditions of uncertainty, the decision-maker does not know the probabilities of the outcomes, while she knows some of the alternatives and the objectives. With ambiguity, the objectives are unclear, alternatives are difficult to define, and information about outcomes is incomplete or unavailable.

150. The step in the decision making process in which managers analyze the underlying causal factors associated with the situation is called .

Diagnosis

136. An alliance begun in 1957 to improve economic and social conditions among its members, it has evolved into the 27-nation .

European Union

1. Research shows that managers in creative companies avoid risk and experimentation. a. True b. False

False

12. Efficiency refers to the degree to which the organization achieves a stated objective. a. True b. False

False

27. The idea in the large group intervention is to get a sample of people who may have an interest in the organization, gather perspectives from the selected parts of the system, and allow the sample to create a collective future. a. True b. False

False

8. The acceptance theory of authority argues that managers have authority because employees do not have a choice in choosing to accept their commands. a. True b. False

False

8. Uncertainty means that a decision has clear-cut goals, and that good information is available, but the future outcomes associated with each alternative are subject to chance. a. True b. False

False

9. Most ethical dilemmas in business involve a conflict between stakeholders and shareholders. a. True b. False

False

146. Describe GATT and the World Trade Organization.

GATT started as a set of rules to ensure nondiscrimination, clear procedures, dispute negotiation, and including lesser developed countries into international trade. GATT and WTO use tariff concessions as a tool to increase trade. Each of the 23 nations that signed GATT agree to limit tariff levels on imports from other members and to the most favored nation clause. GATT sponsored eight rounds of international trade negotiations aimed at reducing trade restrictions. WTO guides and urges nations worldwide toward free trade and open markets.

91. If a manager finds a severe decline in employee morale and direction, they may need to spend more time in the _____ role. a. negotiator b. resource allocator c. figurehead d. monitor e. leader

Leader

106. The management function that involves the use of influence to motivate employees to achieve the organization's goals is referred to as .

Leading

describes the organization's reason for existence.

Mission

157. The approach is when a manufacturing company uses outside suppliers to provide large components of the product, which are then assembled into a final product by a few workers.

Modular

Hawthorne effect

Observation that employee motivation is affected as much or more by recognition and show of concern, as it is by improvements in their work conditions. Observed by the US productivity researcher George Elton Mayo (1810-1949), during 1927 to 1933 at the Hawthorne (Illinois) plant of Western Electric.

125. The relationship between social responsibility and financial performance has been shown to be .

Positive

115. Individuals at the level are guided by an internal set of values and standards and will even disobey rules or laws that violate these principles.

Post Conventional

113. At the level of personal moral development, individuals are most concerned with external rewards and punishments.

Preconventional

160. is the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

Reengineering

Time Management

Refers to using techniques that enable you to get more done in less time and with better results, be more relaxed, and have more time to enjoy your work and your life.

(objects, taboos, holidays) is a sociocultural factor in the international environment.

Religion

111. The individual performer is a(n) ; whereas, the manager has to be a(n) .

Specialist, generalist

109. are ongoing plans that are used to provide guidance for tasks performed repeatedly within the organization.

Standing Plans

159. List the three guidelines of innovative group decision-making in today's businesses.

Start with brainstorming, Know when to bail, Avoid groupthink, Engage in rigorous debate

158. List four of the eight questions Kepner and Tregoe recommend that managers ask when diagnosing and analyzing causes.

Students can answer with any four of the following questions: (1) What is the state of disequilibrium affecting us? (2) When did it occur? (3) Where did it occur? (4) How did it occur? (5) To whom did it occur? (6) What is the urgency of the problem? (7) What is the interconnectedness of events? (8) What result came from which activity?

146. A(n) structure has an overall narrow span and more hierarchical levels.

Tall

158. A(n) is a temporary team designed to solve a short-term problem involving several departments.

Task Force

human resources perspective

The human resources perspective maintained an interest in worker participation and considerate leadership but shifted the emphasis to consider the daily tasks that people perform. The human resources perspective combines prescriptions for design of job tasks with theories of motivation.

total quality management

Total quality management focuses on managing the total organization to deliver better quality to customers, moved to the forefront in helping U.S. managers deal with global competition. The approach infuses high-quality values throughout every activity within a company, with frontline workers intimately involved in the process. Four significant elements of quality management are employee involvement, focus on the customer, benchmarking, and continuous improvement.

11. Tactical plans are designed to help execute the major strategic plans and to accomplish a specific part of the company's strategy. a. True b. False

True

11. The basis for the recent trend among companies to police employee personal habits such as alcohol and tobacco consumption on the job is called the utilitarian ethic. a. True b. False

True

23. In a geographic-based structure, all functions in a specific country or region report to the same division manager. a. True b. False

True

24. A strategic plan defines the course of action needed to achieve the stated goals. a. True b. False

True

24. Manager least enjoy activities such as controlling subordinates and managing time pressures. a. True b. False

True

24. Organizational development involves the application of behavioral science techniques to improve an organization's effectiveness and success. a. True b. False

True

29. Physical symbols are associated with the surface level of organizational culture. a. True b. False

True

35. In determining what cultural values are important for the organization, managers should consider the external environment as well as the company's strategy and goals. a. True b. False

True

35. The disparity between existing and desired performance levels is the need for change. a. True b. False

True

35. The radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed is called reengineering. a. True b. False

True

36. In adaptive cultures, managers are concerned with customers and processes that bring about useful change. a. True b. False

True

39. Policy-based statements generally outline the procedure to be used in specific ethical situations. a. True b. False

True

6. In the real world, few decisions are certain. a. True b. False

True

7. Creativity is the generation of novel ideas that may meet perceived needs or respond to opportunities for the organization. a. True b. False

True

7. Customers are the people and organizations in the environment who acquire goods or services from the organization. a. True b. False

True

37. For the compact disc industry, the advent of MP3 technology can best be described as what type of innovation? a. Disruptive innovation b. Service innovation c. Productive innovation d. Restructuring innovation e. Reverse innovation

a. Disruptive innovation

77. Which approach defines how a decision-maker should make decisions? a. Normative b. Scientific c. Descriptive d. Reflective e. Humanistic

a. Normative

60. A social entity that is goal directed and deliberately structured is referred to as a(n): a. organization. b. management. c. employee. d. student. e. task.

a. Organization

74. Left-Right Industries employs a diverse set of individuals with strong personalities. Unfortunately, this means that there is a great deal of interpersonal disagreement among employees. What organizational tool would work best in this circumstance to manage conflict? a. Organizational development b. Skunkwork c. Telecommuting d. Downsizing e. Small-group innovation

a. Organizational development

95. Jefferson Inc. is an information technology consulting firm located in Washington D.C. Decisions at Jefferson are complex and involve many people, with a significant amount of disagreement and conflict. Which decision-making model fits best for this organization? a. Political b. Functional c. Classical d. Administrative e. Bureaucratic

a. Political

80. Which of the following is the reinforcement stage of organization development in which individuals acquire a desired new skill or attitude and are rewarded for it by the organization? a. Refreezing b. Restating c. Unfreezing d. Changing e. Jumping

a. Refreezing

52. refers to a clearly defined line of authority in the organization that includes all employees. a. Scalar principle b. Unity of command c. Work specialization d. Division of labor e. Span of management

a. Scalar principle

68. is the first step in the MBO process. a. Setting goals b. Developing action plans c. Appraising overall performance d. Reviewing progress e. None of these

a. Setting goals

44. Which of the following is a change in the manner in which an organization does its work? a. Technology b. Product c. Entrepreneurship d. Creativity e. Incremental

a. Technology

74. Which of these is true about single-use plans? a. They are developed to achieve a set of goals that are unlikely to be repeated in the future. b. They are used to provide guidance for tasks performed repeatedly within the organization. c. They define plans that define company responses to specific situations, such as emergencies or setbacks. d. They are most important in the organizations. e. None of these

a. They are developed to achieve a set of goals that are unlikely to be repeated in the future.

71. The condition under which ambiguity occurs is when: a. alternatives are difficult to define. b. objectives are well defined. c. information about outcomes is readily available. d. all the alternatives are known. e. decisions are already made.

a. alternatives are difficult to define.

53. "We respect our employees and value their diversity" is an example of a statement you are most likely to find in the organization's . a. mission b. strategic goals c. tactical goals d. strategic plans e. tactical plans

a. mission

164. Current departmentalization of Javier's new division can be characterized primarily as: a. vertical functional. b. divisional. c. horizontal matrix. d. team-based. e. none of these.

a. vertical functional.

142. The model of decision making describes how managers actually make decisions in difficult situations, such as those characterized by nonprogrammed decision, uncertainty, and ambiguity.

administrative

50. means that each employee is held accountable to only one supervisor. a. Scalar principle b. Unity of command c. Work specialization d. Division of labor e. Span of management

b. Unity of command

83. The matrix structure violates which of the following principles of management? a. Unity of direction b. Unity of command c. Work specialization d. Division of labor e. Span of management

b. Unity of command

54. Which ethical approach are companies citing to justify their policing of employee's personal habits on and off the job, such as alcohol and tobacco consumption? a. Justice approach b. Utilitarian approach c. Individualism approach d. Moral-justice approach e. Discretionary responsibility

b. Utilitarian approach

96. Which of these is the disclosure by an employee of an illegal activity? a. Tattling b. Whistle-blowing c. Organizational communication d. The filing of a disclosure statement e. Snooping

b. Whistle-blowing

70. Change and uncertainty in the environment are usually associated with . a. work specialization b. decentralization c. centralization d. tight vertical control e. division of labor

b. decentralization

48. Mark, a production manager at Kaylie's Kookware, recently chose to schedule his workers to work overtime. His alternative was to hire more workers. He is now monitoring the consequences of his choice. This is an example of _____. a. planning b. decision-making c. organizing d. controlling e. leading

b. decision-making

63. Shoshanna is manager of a customer service firm where she oversees five subordinates. To help her subordinates learn more about the different roles within the company, Shoshanna regularly assigns them tasks that are not part of their normal routine. This is an example of: a. responsibility b. delegation c. authority d. chain of command e. irrational decision making

b. delegation

55. Examples of nonprogrammed decisions would include the decision to: a. reorder supplies. b. develop a new product or service. c. perform routine maintenance on one of the machines in manufacturing. d. terminate an employee for violation of company rules. e. fill a position.

b. develop a new product or service.

52. Go RVing, a U.S. company, built a subsidiary from scratch in England. This is an example of: a. franchising. b. greenfield venture. c. joint venture. d. exporting. e. licensing.

b. greenfield venture.

87. The traditional approach to corporate planning was to: a. have a decentralized planning staff. b. have a centralized planning department. c. set up a planning task force. d. set up planning committees. e. use TQM approach.

b. have a centralized planning department.

95. In countries where women are often in positions of high status, the Globe Project would describe that culture as low in _____. a. assertiveness b. uncertainty avoidance c. gender differentiation d. societal collectivism e. performance orientation

c. gender differentiation

106. The decision-maker must once the problem has been recognized and analyzed. a. evaluate and provide feedback b. choose among alternatives c. generate alternatives d. prioritize the alternatives e. reanalyze the problem

c. generate alternatives

60. Ashley has average technical skills but her real strengths lay in visualizing the benefits of other's ideas and in finding financial and political support for these ideas. Ashley is an excellent example of a(n) . a. critic. b. sponsor. c. idea champion. d. inventor. e. bureaucrat.

c. idea champion.

57. The innovation strategy for changing products and technologies that involves managers putting in place processes and structures to ensure that new ideas are carried forward for acceptance and implementation is known as _____. a. exploration b. cooperation c. innovation roles d. idea incubator e. horizontal linkage

c. innovation roles

119. A pure functional structure is most appropriate for achieving: a. innovation. b. differentiation. c. internal efficiency goals. d. flexibility. e. all of these

c. internal efficiency goals.

102. The consistency culture has a(n) focus and an orientation for a environment. a. external, stable b. external, dynamic c. internal, stable d. internal, dynamic e. structural, dynamic

c. internal, stable

65. The thinking underlying the domain of is the closest to the justice approach. a. social responsibility b. free choice c. law d. discretionary responsibility e. ethics

c. law

65. In international operations, the economic environment represents all of the following factors except: a. infrastructure. b. resource and product markets. c. laws and regulations. d. inflation. e. exchange rates.

c. laws and regulations.

91. Austria's cultural preference is for achievement, heroism, assertiveness, and material success. This would be considered: a. power distance. b. individualism. c. masculinity. d. ethnocentrism. e. collectivism.

c. masculinity.

88. The is an organization structure that divides the major functions of the organization into separate companies. a. diversification approach b. team approach c. virtual network approach d. BCG approach e. functional approach

c. virtual network approach

47. Which of the following is a function of management? a. Human resources b. Raw materials c. Efficiency d. Planning e. Effectiveness

d. Planning

53. When Terry Doyle of CommuniCom, Inc. created smaller, more independent maintenance units, he was performing the function of . a. controlling b. human relations skills c. leading d. organizing e. resourcing

d. organizing

88. Rodney doesn't always realize that within his role as an air traffic controller, he must continuously perceive and process information based on knowledge and experience that he is not consciously aware of. This describes what type of decision-making? a. Administrative b. Right-brained c. Satisficing d. Rational e. Intuitive

e. Intuitive

50. Which of the following is not a step in the organizational planning process? a. Monitor and learn b. Plan operations c. Translate the plan d. Develop the plan e. Plan marketing tactics

e. Plan marketing tactics

44. Today's companies compete in a . a. growingly domestic b. low-context culture c. high-context culture d. Greenfield economy e. borderless world

e. borderless world

44. The delineates the chain of command, indicates departmental tasks and how they fit together, and provides order and logic for the organization. a. management chart b. employee directory c. structural table d. administrative chart e. organizational chart

e. organizational chart

21. The ability to motivate others is considered a technical management skill. a. True b. False

false

35. The most effective managers are consistent in using their own decision style rather than shifting among styles. a. True b. False

false

115. MNCs that are truly world-oriented and favor no specific country are considered .

geocentric companies

94. A(n) is a desired future state that the organization attempts to realize.

goal

72. Of all management duties, one of the things managers like the least is: a. financial planning. b. controlling activities. c. planning for future decisions. d. handling paperwork. e. networking.

handling paperwork.

50. The of the external environment includes events originating in foreign countries as well as opportunities for American companies in other countries. a. customer relationships dimension b. legal-political dimension c. international dimension d. sociocultural dimension e. technological dimension

international dimension

71. Research shows that managers enjoy all of the following except: a. networking. b. innovation. c. leading others. d. managing time. e. all of these.

managing time.

81. When two or more organizations combine to become one, it is referred to as a: a. joint venture. b. flexible structure. c. mechanistic structure. d. merger. e. inorganic venture.

merger.

106. The approach assets that human beings have fundamental rights and liberties that cannot be taken away by an individual's decision.

moral-rights

65. In response to pressure from environmental advocates, organizations have become increasingly sensitive to diminishing: a. natural resources. b. economic resources. c. financial resources. d. human resources. e. technology resources.

natural resources.

96. A manager in for-profit business focuses primarily on , while a manager of a non-profit focuses on . a. the bottom-line; employee morale b. the bottom-line; social impact c. profitability; customer satisfaction d. market share; the bottom-line e. customer satisfaction; organization reputation

the bottom-line; social impact

15. One advantage to acquiring a wholly owned foreign affiliate is that the company that acquires it would then have complete control. a. True b. False

true

37. The rise of virtual work has led to a decline in organizational hierarchies. a. True b. False

true

132. Division of labor is also known as .

work specialization

62. The dimension of the general environment includes federal, state, and local government regulations. a. technological b. legal-political c. economic d. sociocultural e. international

legal-political

134. In a(n) , people use communication primarily to exchange facts and information.

low-context culture

80. Many organizations are adapting to the environment by developing more of a(n) relationship rather than a(n) relationship with competitors. a. adversarial, partnership b. partnership, adversarial c. strategic, competitive d. competitive, strategic e. none of these

partnership, adversarial

95. A(n) is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.

plan

124. Riots, revolutions, civil disorders, and frequent changes in government that affect the operations of an international company shows in a country.

political instability

123. The risk of loss due to actions by host country governments is known as .

political risk

114. MNCs that are oriented toward the markets of individual foreign host countries are considered .

polycentric companies

127. The degree to which people accept inequality in power among institutions, organizations, and people is called _____.

power distance

151. The divisional structure is sometimes called a(n) , , or .

product structure; program structure; self-contained unit structure

136. The refers to a clearly defined line of authority in the organization that includes all employees.

scalar principle

94. McDonald's "We Love to See You Smile" is an example of a: a. ceremony. b. symbol. c. ritual. d. slogan. e. political activity.

slogan

95. "Chiquita. Perfect for Life." was Chiquita's: a. ceremony. b. slogan. c. symbol. d. ritual. e. all of these.

slogan

117. Management's obligation to make choices that will contribute to the well being of both the organization and society is known as .

social responsibility

59. When Miami Herald launches a Spanish-language newspaper, El Nuevo Herald, with articles emphasizing Hispanic, Cuban, and Latin American news and sports, it is responding to changes in environment. a. sociocultural b. technological c. economic d. supply chain e. geographic

sociocultural

144. The is the number of employees reporting to a supervisor.

span of management

he individual performer is a ; whereas, the manager has to be a(n) . a. specialist; generalist b. "leader"; doer c. generalist; specialist d. producer; expert e. communicator; operator

specialist; generalist

103. are designed to help execute major strategic plans and to accomplish a specific part of the company's strategy.

tactical plans

112. To affect the value system, Nikki will be working primarily with: a. the legal-political dimension. b. the sociocultural dimension. c. the internal cultural dimension. d. the economic dimension. e. the external dimension.

the internal cultural dimension.

24. Step one in the managerial decision-making process is recognition of decision requirement. a. True b. False

true

25. Mergers/acquisitions, organizational decline, and conflict management are the three types of current problems that organizational development managers face. a. True b. False

true

26. Social responsibility is management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization. a. True b. False

true

30. The informational roles that managers perform include monitor, disseminator, and spokesperson. a. True b. False

true

31. The social value of uncertainty avoidance is evident in countries like Greece, which supports beliefs that provide stability and conformity among its citizenry. a. True b. False

true

34. Managers in small businesses tend to emphasize roles different from those of managers in large corporations. a. True b. False

true

35. Not-for-profit organizations, such as The Red Cross and the Girl Scouts, represent a major application of management talent. a. True b. False

true

36. We might expect managers in nonprofit organizations to place more emphasis on the roles of spokesperson, leader, and resource allocator. a. True b. False

true

39. Technological advances have resulted in employees becoming more empowered. a. True b. False

true

128. A value characterized by people's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity refers to .

uncertainty avoidance

135. When each employee is held accountable to only one supervisor, it is called .

unity of command

104. The ethical concept that moral behaviors produce the greatest good for the greatest number is referred to as approach.

utilitarian

138. The three characteristics of authority are that it must be , , and .

vested in organizational positions not people; accepted by subordinates; flowing down the vertical hierarchy.

124. Employee disclosure of illegal organization activities is known as ..

whistle-blowing

133. The degree to which organizational tasks are subdivided into individual jobs is called .

work specialization

164. List and describe the four basic assumptions of the political model.

(1) Organizations are made up of groups with diverse interests, goals, and values. Managers disagree about problem priorities and may not understand or share the goals and interests of other managers. (2) Information is ambiguous and incomplete. The attempt to be rational is limited by the complexity of many problems as well as personal and organizational constraints. (3) Managers do not have the time, resources, or mental capacity to identify all dimensions of the problem and process all relevant information. Managers talk to each other and exchange viewpoints to gather information and reduce ambiguity. (4) Managers engage in the push and pull of debate to decide goals and discuss alternatives. Decisions are the result of bargaining and discussion among coalition members.

163. Explain the four underlying assumptions of the administrative model.

(1) The decision maker operates to accomplish goals that are vague and conflicting. (2) All alternatives and the potential results are based on simplistic views of organizational events. (3) Alternatives are limited based on human constraints. (4) Managers settle for satisficing.

174. List the factors that are associated with less supervisor involvement and thus larger spans of control.

(1) Work performed by subordinates is stable and routine. (2) Subordinates perform similar work tasks. (3) Subordinates are concentrated in a single location. (4) Subordinates are highly trained and need little direction in performing tasks. (5) Rules and procedures defining task activities are available. (6) Support systems and personnel are available for the manager. (7) Little time is required in nonsupervisory activities such as coordination with other departments or planning. (8) Managers' personal preferences and styles favor a large span.

83. The growth of quantitative decision techniques that use computers has expanded the use of which decision-making approach? a. Administrative b. Classical c. Intuitive d. Political e. Bureaucratic

. Classical

116. A multinational corporation typically receives at least % of its total sales revenues from outside the parent's home country.

25%

means that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

: Accountability

is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.

: Authority

113. List the five characteristics of effective goals.

: Goals should be (1) specific and measurable; (2) they should cover key result areas; (3) they should be challenging but realistic; (4) they should have a defined time period; and (5) they should be linked to rewards.

142. departments perform tasks that reflect the organization's primary goal and mission, while departments include all those that provide specialized skills in support of departments.

: Line; staff; line

106. is a method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.

: Management by objectives

111. A special type of contingency plan that is used when events are sudden and devastating and require immediate response is called .

: crisis management planning

176. What is the horizontal matrix approach to departmentalization and what are its main advantages?

A horizontal matrix structure utilizes functional and divisional chains of command simultaneously in the same part of the organization. This structure has dual lines of authority and purposely violates the principle of unity of command. Major advantages include: (1) more efficient use of human resources because specialists can be transferred from one division to another; (2) increased adaptability; (3) increased management skills; (4) greater interdisciplinary cooperation; and (5) enlarged tasks for employees.

Role

A set of expectations for a manager's behavior.

organization

A social entity that is goal directed and deliberately structured.

135. Explain the concept of a stakeholder and list five common stakeholders.

A stakeholder is any individual or group of people, inside the organization or outside the organization, that has a stake or direct interest in that organization's performance. Stakeholders inside the organization include the employees, the managers, and the stockholders. Stakeholders outside the organization include customers, suppliers, regulatory agencies, and creditors.

bureaucracy

A system of administration distinguished by its (1) clear hierarchy of authority, (2) rigid division of labor, (3) written and inflexible rules, regulations, and procedures, and procedures, and (4) impersonal relationships.

180. Define task forces and project management.

A task force is a temporary team or committee designed to solve a short-term problem involving several department A project manager is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.

133. List and define the stages of moral development.

According to the model in the book, there are three stages of moral development. During the preconventional stage (level 1), individuals are mostly concerned with external rewards and punishments. They obey authority in order to avoid punishment. Individuals conforming to the expectations of others characterize the second level, the conventional stage. Fulfilling social and interpersonal obligations is important. At the postconventional/principled stage (level 3), an individual's behavior is directed by an internal set of values and beliefs. These values are more important than the expectations of others.

111. Industrial Instruments operates in an environment that requires fast response and high-risk decision making. Which type of culture may be appropriate here? a. Consistency b. Adaptability c. Clan d. Achievement e. Involvement

Adaptability

63. aspects of management do not change when doing business internationally. a. Planning b. Organizing c. Controlling d. Leading e. All of these

All of these

67. Conceptual, human, and technical skills are important to which managerial level? a. Top managers b. Middle managers c. First-line managers d. Non managers e. All of these

All of these

171. Compare and contrast authority, responsibility, accountability, and delegation.

Authority is defined as the formal and legitimate rights of a manager to make decisions, issue orders, and allocate resources. Responsibility is the duty to perform the task that has been assigned. Many argue that authority and responsibility go hand- in-hand, i.e., in order for someone to fulfill their responsibility, they must have an equivalent level of authority. Accountability means that those with authority and responsibility are subject to reporting and justifying task outcomes to those higher in the chain of command. Accountability brings authority and responsibility together. The principle of delegation allows managers to transfer authority and responsibility to those lower in the organizational hierarchy. Delegation should increase an organization's flexibility by allowing people "on the spot" to make decisions.

155. The style is often the style adopted by managers having a deep concern for others as individuals.

Behavioral

156. People with a(n) style usually are concerned with the personal development of others and may make decisions that help others achieve their goals.

Behavioral

64. Which of the following roles are assumed by people and/or departments that link and coordinate the organization with key elements in the external environment? a. Figurehead b. Liaison c. Boundary-spanning d. Disturbance handler e. Leader

Boundary-spanning

72. Kristen's Jewelry Shop has just hired a comparative shopper to visit other local jewelry stores to gain product pricing information. What strategy is this describing? a. Boundary-spanning roles. b. A flexible structure. c. Unfair practice. d. Increase planning and forecasting. e. Joint venture.

Boundary-spanning roles.

73. is an approach to boundary spanning which results from using sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant. a. Merger intelligence b. Business intelligence c. Competitive intelligence d. Partnership intelligence e. Environment intelligence

Business intelligence

141. List five of the countries that make up the European Union (EU).

Choose any five of the following: Sweden, Finland, Denmark, Ireland, United Kingdom, Luxembourg, Netherlands, Germany, Belgium, France, Portugal, Spain, Austria, Italy, and Greece.

167. List three disadvantages of the divisional structure.

Choose three of the following -- duplication of resources across divisions, less technical depth and specialization in divisions, poor coordination across divisions, less top management control, and competition for corporate resources.

79. is a part of Ford's, the U.S. auto manufacturer, task environment. a. Inflation rate b. Chrysler c. Securities and Exchange Commission (SEC), a government regulating agency d. Amazon.com, an online bookseller e. Ford's corporate culture

Chrysler

121. A(n) is a formal statement of the company's values concerning ethics and social issues; it communicates to employees what the company stands for.

Code of Ethics

103. Which of the following cultures values and rewards a methodical, rational, orderly way of doing things? a. Achievement culture b. Involvement culture c. Accomplishment culture d. Consistency culture e. Adaptability culture

Consistency culture

110. Plans that define company responses to specific situations, such as emergencies, setbacks, or unexpected conditions are called plans.

Contingency

contingency view

Contingency means that one thing depends on other things and a manager's response to a situation depends on identifying key contingencies in an organizational situation.

173. A business activity that an organization does particularly well relative to its competition is known as a(n) .

Core Competence

177. What is(are) the difference(s) between cross-functional and permanent teams?

Cross-functional teams consist of employees from various functional departments who are responsible to meet as team and resolve mutual problems. Team members typically still report to their functional departments, but they also report to the team, one member of whom may be the leader. Permanent teams are groups of employees who are brought together similar to a formal department. Each team brings together employees from all functional areas focused on a specific task or project. Emphasis is on horizontal communication and information sharing because representatives from all functions are coordinating their work and skills to complete a specific organizational task.

customer relationship management

Customer relationship management (CRM) is a model for managing a company's interactions with current and future customers.

67. The people and organizations in the environment who acquire goods or services from the organization are: a. competitors. b. suppliers. c. customers. d. employees. e. potential employees.

Customers

154. Differences among people with respect to how they perceive problems and make decisions is called .

Decision style

167. Briefly describe the four major personal decision styles.

Directive, analytical, conceptual, and behavioral style.

responsibility is purely voluntary and guided by a company's desire to make social contributions not mandated by economics, law, or ethics.

Discretionary

81. Gail Griffith, manager of the finance division, distributes relevant information everyday to all her employees enabling them to make quality decisions. Gail is performing which of the following roles? a. Monitor role b. Disseminator role c. Spokesperson role d. Disturbance handler role e. Figurehead role

Disseminator role

57. Which of the following rules, according to Spotlight on Skills in Chapter 2, is about forging an emotional bond? a. Don't skip the small talk. b. Business is always personal. c. Remember that relationships are not short-term. d. Make contact frequently. e. Be efficient with use of time.

Don't skip the small talk.

42. Without , no company can survive over the long run. a. cost-cutting b. outsourcing c. command-and-control approach d. total quality teamwork e. innovation

E. Innovation

109. The degree to which the organization achieves a stated goal is called .

Effectiveness

110. Organizational refers to the amount of resources used to achieve an organizational goal.

Efficiency

63. Which of the following refers to the amount of resources used to achieve an organization's goal? a. Effectiveness b. Synergy c. Performance d. Efficiency e. Management

Efficiency

humanistic perspective

Emphasizes the importance of understanding human behaviors, needs, and attitudes in the workplace, as well as social interactions and group processes. There are three primary subfields based on the humanistic perspective: the human relations movement, the human resources perspective, and the behavioral sciences approach

Employee Involvement

Employee involvement means that achieving better quality requires companywide participation in quality control.

48. All of these are a part of an organization's task environment except . a. customers b. labor markets c. competitors d. employers e. suppliers

Employers

130. Define ethics and explain how the domain of ethics relates to law and free choice.

Ethics is the code of moral principles and values that govern the behaviors of a person or a group with respect to what is right or wrong. In Codified Law, the values and standards are written into the legal system and enforceable in the courts. In free choice, the law has no say and the individual or group has complete freedom. The domain of ethics is found between Codified Law and free choice. While written laws do not bind ethics, still there are standards of conduct based upon shared principles and values.

135. means that people have a tendency to regard their own culture as superior to other cultures.

Ethnocentrism

142. Briefly describe the social characteristic of ethnocentrism and explain how this can have an impact on the success of an international manager.

Ethnocentrism is a cultural attitude marked by the tendency to regard one's own culture as superior to others. When an international manager has this characteristic, he or she is less likely to be successful, because he or she devalues the culture in which they are trying to do business. When the culture is devalued, relationships can be damaged, trust can be lost, and the willingness to maintain the business relationship can be broken.

137. The is the single European currency that has replaced 12 national currencies.

Euro

12. A broad definition of the organization's values, aspiration and reason for being, along with a recognition of the scope and operations that distinguishes the organization refers to a Business Plan. a. True b. False

False

12. Monitoring the Internet to maintain the company's ethical climate and workplace productivity could be considered part of an individualistic approach. a. True b. False

False

12. The innovation strategy for changing products and technologies that involves designing the organization to encourage creativity and the initiation of new ideas is known as cooperation. a. True b. False

False

122. Strategic thinking is more important -profit businesses than for non-profit organizations. a. True b. False

False

124. Front-line managers have the final responsibility for strategic planning. a. True b. False

False

125. Competitive advantage refers to the set of decisions and actions used to formulate and implement strategies. a. True b. False

False

126. Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment. a. True b. False

False

128. In a turbulent business climate, managers should focus on strategic stability rather than flexibility. a. True b. False

False

13. All managers have to pay attention to costs and according to research, the best way to improve organizational effectiveness is by severe cost cutting. a. True b. False

False

13. Licensing means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies. a. True b. False

False

13. Many hierarchical levels and a correspondingly narrow span of management refers to a flat structure. a. True b. False

False

13. Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality. a. True b. False

False

13. Tactical goals are specific, measurable results expected from departments, work groups, and individuals within the organization. a. True b. False

False

13. The ethical concept that acts are moral when they promote the individual's best long term interests, which ultimately leads to the greater good, is known as the moral rights approach. a. True b. False

False

13. The innovation strategy for changing products and technologies that involves creating conditions and systems to facilitate internal and external coordination and knowledge sharing is known as exploration. a. True b. False

False

130. The essence of formulating strategy is choosing how the organization will conform to become like its key competitors in the industry. a. True b. False

False

131. Executives acquire information about external opportunities and strengths from a variety of reports, including budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction. a. True b. False

False

132. Threats are characteristics of the internal environment that may prevent the organization from achieving its strategic goals. a. True b. False

False

135. An SBU stands for Star Business Unit. a. True b. False

False

136. The BCG (Boston Consulting Group) matrix evaluates SBUs with respect to their business growth rate and geographical location. a. True b. False

False

14. Individualism is popular in the highly organized society of today because it supports immediate self-gain. a. True b. False

False

14. The classical model of decision-making works best in organizations that are made up of groups with diverse interests, goals, and values. a. True b. False

False

14. The trend in recent years has been toward narrower spans of control as a way to facilitate delegation. a. True b. False

False

14. Top managers make the broad strategic plan and identify specific tactical plans. a. True b. False

False

141. Cost leadership is a type of competitive strategy with which the organization seeks to distinguish its products or services from that of competitors. a. True b. False

False

16. A form of direct investment is franchising. a. True b. False

False

16. Certainty in the environment is usually associated with decentralization. a. True b. False

False

16. Compensatory justice argues that an employees compensation should be based on individual performance. a. True b. False

False

16. Customers and competitors are two important sectors of the economic dimension of a firm's general environment. a. True b. False

False

17. According to both research and managerial experience, intuitive decisions are best and always work out. a. True b. False

False

17. Centralization and short time horizon are primarily used by creative organizations. a. True b. False

False

17. Only the top managers in organizations need conceptual skills since it involves planning. a. True b. False

False

18. Level 3 of the Personal Moral Development model is Conventional. a. True b. False

False

19. The Preconventional level of Personal Moral Development lives up to expectations of others, upholds laws, and fulfills duties and obligations of the social system. a. True b. False

False

19. The functional structure offers a way to decentralize decision making and provide direction from the teams in the field. a. True b. False

False

19. The political model consists of vague problems and goals, limited information about alternatives and their outcomes, and a satisficing choice for resolving problems using intuition. a. True b. False

False

2. Free choice lies between the domains of codified law and ethics. a. True b. False

False

2. Organizing defines what to do while strategy defines how to do it. a. True b. False

False

2. The most recent U.S. census data show that about one-third of all babies born 2011 were members of minority group. a. True b. False

False

2. The nature of management is to control and dictate others in an organization. a. True b. False

False

2. When Harbor Trades, a Korean-based company, makes resources including technology, managerial skills, and patent and trademark rights available to Nano Technologies, a Russian company whereby allowing Nano to make products similar to Harbor, it is engaging in exporting. a. True b. False

False

20. Because of cheap labor, most international business firms are headquartered in the less developed countries of Asia and South America.

False

20. Because the chain of command converges at the top, the functional structure provides a way to decentralize decision making and provide unified direction from all managers. a. True b. False

False

20. People change starts with training everyone in the organization. a. True b. False

False

21. Goals must be set for every aspect of employee behavior or organizational performance to be effective. a. True b. False

False

21. Individuals are concerned with external rewards and punishments at the principled level. a. True b. False

False

21. Quick response to external changes is an advantage of vertical functional structure. a. True b. False

False

22. An individual at the postconventional level lives up to expectations of others, fulfills duties and obligations of social systems, and upholds law. a. True b. False

False

22. Divisions are created, in functional structures, as self-contained units with separate functional departments for each division. a. True b. False

False

23. Nonprogrammed decisions require six steps, however, programmed decisions being structured and well understood require only one step. a. True b. False

False

23. The primary emphasis of polycentric companies is on their home countries. a. True b. False

False

24. Managers in partnering organizations, given the increasing environmental uncertainty, are shifting from a partnership orientation to an adversarial orientation. a. True b. False

False

24. The majority of managers operate at the preconventional level of personal moral development. a. True b. False

False

24. With a matix structure, the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals. a. True b. False

False

25. Aspects of both functional and divisional structures simultaneously in the same part of the organization are combined in the virtual network approach. a. True b. False

False

25. For a non-programmed decision, feasible alternatives are hard to identify and in fact are already available within the organization's rules and procedures. a. True b. False

False

25. In step 1 of Management By Objectives, overall performance is appraised. a. True b. False

False

25. The individual performer is a generalist and coordinates a broad range of activities. a. True b. False

False

26. Due to the stable environment and lack of technological change, mergers and joint ventures rarely occur in the U.S. a. True b. False

False

26. The estimated 2010 misery index figures suggest significantly less misery for almost every country as compared to figures at the beginning of the century. a. True b. False

False

26. The horizontal structure provides traditional control within functional departments, and the vertical structure provides coordination across departments. a. True b. False

False

27. Culture can be defined as the ability to speak different languages. a. True b. False

False

27. Social responsibility covers a narrow range of issues, many of which are unambiguous with respect to right or wrong. a. True b. False

False

27. Standing plans define company responses to specific situations such as natural emergencies or competitive setbacks. a. True b. False

False

27. The formulation stage involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out. a. True b. False

False

28. Cultural values in organizations are rarely observed. a. True b. False

False

28. Survey feedback enhances the cohesiveness and success of organizational groups and teams. a. True b. False

False

28. The countries experiencing political stability face the greatest threat of violence. a. True b. False

False

28. The goals should be easy, for employees to feel motivated, so that they can achieve them easily which in turn increases their motivation level. a. True b. False

False

28. The overseer of both the product and functional chains of command, responsible for the entire matrix is the matrix boss. a. True b. False

False

29. In the implementation stage, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals. a. True b. False

False

29. In the spokesperson role, a manager forwards information to other organization members. a. True b. False

False

3. Companies can survive over the long run without innovation. a. True b. False

False

3. Goals specify today's means; plans specify future ends. a. True b. False

False

3. If something is ethical, it must not be illegal. a. True b. False

False

30. In the divisional approach, coordination across divisions is great whereas coordination within divisions is often poor. a. True b. False

False

30. One of the biggest benefits of planning is that, in turbulent environments, plans create greater organizational flexibility. a. True b. False

False

30. The set of key values, beliefs, and norms, that are shared by members of an organization are combined to create the symbols of an organization. a. True b. False

False

30. The three distinct steps for achieving behavioral and attitudinal change with organizational development are planning, changing,and stabilizing. a. True b. False

False

32. A phrase or sentence that succinctly expresses a key corporate value is called a story. a. True b. False

False

32. The disturbance handler role involves the initiation of change, thinking about the future and how to get there. a. True b. False

False

33. Crisis plans define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions. a. True b. False

False

33. In a monitor role, the manager trasmits current information to others, both outside and inside the organization. a. True b. False

False

33. The behavioral style is often adopted by managers who like to consider complex solutions based on as much data as they can gather. a. True b. False

False

34. Economic responsibility defines what society deems as important with respect to appropriate corporate behavior. a. True b. False

False

34. Reengineering basically means preserving the past by establishing the sequence of activities by how work was done. a. True b. False

False

36. According to the GLOBE Value Dimensions, Japan and Russia both have very high performance orientation. a. True b. False

False

36. Ethical behavior occurs when decisions enable an individual or company to gain at the expense of society. a. True b. False

False

36. The ABC Corporation should create a crisis management group that is not cross-functional, but does work together well under pressure. a. True b. False

False

37. A high humane orientation means that a society encourages toughness, assertiveness, and competitiveness. a. True b. False

False

37. An achievement culture is found in an environment that is dynamic and requires high-risk decision-making. a. True b. False

False

37. The CEO of Andre's Autos, Inc. must do all of the planning for the company because that is the way to do things in today's workplace. a. True b. False

False

37. Unfortunately, discretionary responsibility is involuntary and is mandated by economics, law, or ethics. a. True b. False

False

37. When an organization uses a differentiation strategy, it strives for internal efficiency. a. True b. False

False

38. A low-context culture is a culture in which communication is used to enhance personal relationships. a. True b. False

False

38. Managers will frequently look for new information that contradicts thier instincts or original point of view.. a. True b. False

False

38. Trend management is looking at trends and discontinuities and imagining possible alternative futures. a. True b. False

False

39. In centralized planning, managers at all levels work with planning experts to develop their own goals and plans. a. True b. False

False

39. Most people underestimate their ability to predict uncertain outcomes. a. True b. False

False

39. The consistency culture has an external focus and a consistency orientation for a dynamic environment. a. True b. False

False

39. The functional structure is appropriate when the primary goal is innovation and flexibility. a. True b. False

False

4. A organizational map is a visual representation of an organization's structure, showing communication and lines of power. a. True b. False

False

4. Although public confidence in business managers is at an all-time low, politics, sports, and non-profit organizations have not been affected. a. True b. False

False

4. The outer layer, the general environment, is widely dispersed and affects organizations directly. a. True b. False

False

4. Two employees in Stacey's department quit which is normal for her department. She is faced with the decision to fill these positions. This would be considered a nonprogrammed decision. a. True b. False

False

40. In today's business environment, most companies operate in a stable and rigid environment. a. True b. False

False

40. One of the newest positions in organizations is the chief operating officer, a response to widespread financial wrongdoing in recent years. a. True b. False

False

40. Small-batch production is distinguished by standardized production runs. a. True b. False

False

41. Brainwriting refers to the tendency of people in groups to suppress contrary opinions. a. True b. False

False

41. Ethnocentrism refers to a natural tendency of people to regard their own culture as inferior to other cultures. a. True b. False

False

42. German, Swiss, and North American cultures are among the high-context cultures. a. True b. False

False

43. Devil's advocate technique is similar to brainstorming in that both techniques prevent individuals from challenging other group member's assumptions. a. True b. False

False

5. Technology change involves the hierarchy of authority, goals, administrative procedures, and managerial systems. a. True b. False

False

5. The principle of unity of command suggests that managers within an organization should reach agreement on the goals and objectives of the organization. a. True b. False

False

5. The task environmental dimension includes all elements that occur naturally on earth, including plants, animals, rocks, and natural resources such as air, water, and climate. a. True b. False

False

5. The term top of the pyramid refers to the more than four billion people who earn the least, as defined by per capita income. a. True b. False

False

6. A goal is a blueprint for achievement. a. True b. False

False

6. Fifteen member states of the EU have adopted the rupee, as a single European currency. a. True b. False

False

6. The use of influence to motivate employees to achieve the organization's goals refers to controlling. a. True b. False

False

7. A tendency to regard their own culture as superior and to downgrade other cultures reflects an attitude called geocentric. a. True b. False

False

7. Organizing means defining goals for future organizational performance and deciding on the tasks and resources needed to attain them. a. True b. False

False

7. The duty to perform the task or activity an employee has been assigned is called accountability. a. True b. False

False

8. Confrontation, authoritarianism, and disciplined exploration are characteristics of the creative individuals. a. True b. False

False

8. Defining operational goals and plans occurs in the execution phase of the organizational planning process. a. True b. False

False

8. The CSR approach to ethical decision making sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account. a. True b. False

False

9. Tactical goals and plans are the responsibility of front-line managers and supervisors. a. True b. False

False

9. With exporting, the corporation transfers its products for sale and its production facilities in foreign countries. a. True b. False

False

Productive innovation refers to innovations in products, services, or processes that radically change an industry's rules of the game for producers and consumers.

False

23. Step 1 in Management by Objectives is to review progress. a. True b. False

False Page. 190

21. A multinational corporation typically receives more than 25 percent of its total sales revenues from operations inside the parent's home country. a. True b. False

False Right answer: Outside the parent's home country

30. People who value high power distances normally expect equality in power. a. True b. False

False: Correct is low power.Countries such as Denmark, Israel

83. According to Mintzberg, when Amanda attends a subordinate's wedding she is performing which of these roles? a. Monitoring b. Figurehead c. Spokesperson d. Leader e. Liaison

Figurehead

82. The president of Pepsi Company is the keynote speaker at a retirement dinner for a long time bottler. This is an example of which of the following roles? a. Liaison role b. Figurehead role c. Negotiator role d. Leader role e. Monitor role

Figurehead role

178. With a(n) strategy, the organization concentrates on a specific regional market or buyer group.

Focus

149. A(n) structure is the grouping of positions into departments based on similar skills, expertise, and resource use.

Functional

168. List the advantages of the virtual network structure.

Global competitiveness, workforce flexibility/challenge, and reduced administrative overhead.

means engaging in the international division of labor so that manufacturing can be done in countries with the cheapest sources of labor and supplies.

Global outsourcing

63. Which of the following is NOT a part of adapting the organization to changes in the environment for coping with high environmental uncertainty? a. Boundary-spanning roles b. Harvesting/divesting c. Mergers/joint ventures d. Interorganizational partnerships e. All of these are a part of organizational response in adapting the organization to changes in the environment.

Harvesting/divesting

82. Molly Madison received "The Employee of the Month" Award at Internal Workings Remodeling Service in April. Molly would be considered a part of which of these for Internal Workings? a. General environment b. Task environment c. Economic environment d. Internal environment e. Legal-political environment

Internal environment

74. CellTech, Vtech, and PhoneTech, three large electronics companies, have recently collaborated to develop an innovative new cell phone. This is an example of which managerial trend? a. Outsourcing b. Interorganizational partnership c. Adversarial orientation d. Merger e. Boundary spanning

Interorganizational partnership

79. Which of the following is not one of the conceptual categories of managerial roles Mintzberg defined? a. Informational b. Interpersonal c. Decisional d. Intrapersonal e. All of these are managerial roles defined by Mintzberg

Intrapersonal

146. represents a quick apprehension of a decision situation based on past experience but without conscious thought.

Intuition

128. List three examples of primary stakeholders.

Investors, shareholders, employees, customers, and suppliers are all examples of primary stakeholders.

89. Roadtec Tire Company has a corporate culture that emphasizes an internal focus on the involvement and participation of employees, placing high value on meeting the needs of employees. The company is known for its caring, family-like atmosphere. Which type of corporate culture does Roadtec possess? a. Adaptability culture b. Achievement culture c. Consistency culture d. Involvement culture e. Matrix culture

Involvement culture

quality movement

Japanese companies achieved a significant departure from the American model by gradually shifting from an inspection-oriented approach to quality control toward an approach that emphasized employee involvement in the prevention of quality problems.

76. In the current external business environment, which of the following is true? a. Corporate culture defines success. b. The business environment is static. c. Companies are more adversarial than ever before. d. Mergers are declining. e. Joint ventures are on the rise.

Joint ventures are on the rise.

107. The approach holds that moral decisions must be based on standards of equity, fairness, and impartiality.

Justice

53. The represents people in the environment who can be hired to work for the organization. a. competitors b. labor market c. suppliers d. customers e. government

Labor Market

54. Ally's Applesauce is in the process of hiring sixty new workers. The personnel department has a large pool of unskilled labor to draw from due to the high unemployment rate in the local area. Which dimension of the external environment is involved here? a. Sociocultural b. Competitors c. Technological d. Labor market e. Legal-political

Labor Market

176. In the BCG matrix, the star has a(n) market share in a rapidly growing industry.

Large

61. A government inspection has required your company to upgrade the safety equipment in the manufacturing process of ice creamery. What dimension of the external environment has influenced these upgrades? a. Technological b. Legal-political c. Task d. Sociocultural e. Economic

Legal-political

86. Which of the following is not a decisional role? a. Entrepreneur b. Negotiator c. Resource allocator d. Disturbance handler e. Liaison

Liaison

101. By maintaining information links, Barry Miller was exhibiting the interpersonal role of: a. figurehead. b. leader. c. liaison. d. monitor. e. spokesperson.

Liason

88. According to Mintzberg, which of these is an interpersonal role? a. Monitor b. Negotiator c. Liaison d. Disturbance handler e. Spokesperson

Liason

89. Maintaining information links are the activities consistent with the role. a. leader b. spokesperson c. monitor d. liaison e. entrepreneur

Liason

143. means that people in management positions have formal authority to direct and control immediate subordinates.

Line authority

172. Briefly explain the concept of line and staff departments and authority.

Line departments perform tasks that reflect the organization's primary task and mission. Staff departments include all those departments that provide specialized skills in support of line departments. In a typical production firm, line departments make and sell the product, while staff departments might include accounting and human resource management. Line authority means that people in management positions have the formal power to direct immediate subordinates. Staff authority is the right to advise, recommend, and counsel in the staff specialist's area of expertise.

is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources.

Management

107. Managers believe that they are better oriented toward goal achievement when is used.

Management by objectives

management science

Management science, also referred to as the quantitative perspective, provided a way to address those problems. This view is distinguished for its application of mathematics, statistics, and other quantitative techniques to management decision making and problem solving.

97. Which of the following is a characteristic of a traditional management approach? a. Managers play the role of an enabler. b. Managers supervise team members' tasks. c. Managers constantly mobilize for change. d. Managers lead and empower teams. e. Managers encourage conversation and collaboration.

Managers supervise team members' tasks.

85. are associated with surface level of organizational culture. a. Values b. Norms c. Manners of dress d. Beliefs e. All of these

Manners of dress

stands for preference for achievement, heroism, assertiveness, work centrality (with resultant high stress), and material success.

Masculinity

153. The combines aspects of both functional and divisional structures simultaneously, in the same part of the organization.

Matrix Approach

time and motion study

Method for establishing employee productivity standard in which (1) a complex task is broken into small, simple steps, (2) the sequence of movements taken by the employee in performing those steps is carefully observed to detect and eliminate redundant or wasteful motion, and (3) precise time taken for each correct movement is measured. From these measurements production and delivery and prices can be computed and incentive schemes can be devised. Generally appropriate only for repetitive tasks, time and motion studies were pioneered by the US industrial engineer Frederick Winslow ¬Taylor (1856?1915) and developed by the husband and wife team of Frank Gilbreth (1868?1924) and Dr. Lillian Gilbreth (1878?1972).

93. If a manager finds several new competitors on the horizon, they may need to spend more time in the which role? a. Negotiator b. Resource allocator c. Figurehead d. Monitor e. Leader

Monitor

80. Which of the following is an informational role, according to Mintzberg? a. Entrepreneur role b. Leader role c. Monitor role d. Disturbance handler role e. Figurehead role

Monitor role

103. The is an individual responsible for making an ethical choice.

Moral Agent

66. Which of the following dimensions of the general environment includes all elements that occur naturally on earth? a. Sociocultural dimension b. Technological dimension c. Economic dimension d. Natural dimension e. Environmental dimension

Natural dimension

90. Which of the following roles involve bargaining with others to meet the unit or departmental goals? a. Negotiator b. Resource allocator c. Figurehead d. Monitor e. Leader

Negotiator

134. decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

Nonprogrammed

111. is defined as the adoption of a new idea or behavior by an organization.

Organizational change

includes all elements existing outside the boundary of the organization that have the potential to affect the organization. a. Organizational environment b. Internal environment c. Task environment d. General environment e. Technological environment

Organizational environment

105. involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization.

Organizing

129. The deployment of organizational resources to achieve strategic goals is known as .

Organizing

104. is concerned with defining goals for future organizational performance.

Planning

96. The act of determining the organization's goals and the means for achieving them is referred to as .

Planning

120. In what ways do plans and goals benefit an organization?

Plans and goals benefit the organization in several ways. First they provide legitimacy and a reason for existence. They also provide a source of motivation and commitment, provide guides for action and decision making, and they set a standard of performance.

144. Identify and briefly explain at least two key factors in economic, sociocultural and political-legal environments that affect an organization.

Please refer to exhibit 4-3 in the text.

122. generally outline the procedures to be used in specific ethical situations, such as marketing practice, conflicts of interest, and observance of laws.

Policy-based statements

181. Briefly discuss Porter's three competitive strategies.

Porter identified three competitive strategies: differentiation, cost leadership, and focus. A differentiation strategy involves the organization attempting to distinguish its product or service from those of its competition. Advertising, product features, and customer service are some of the ways an organization can successfully differentiate. A cost leadership strategy is based on the organization achieving a low-cost position relative to the competition. A company may achieve a cost leadership through the operation of efficient facilities, cutting costs, or maintaining tight cost control. When a company uses a differentiation or a cost leadership strategy in a particular market or buyer group, they are employing a focus strategy. This strategy allows the organization to concentrate on a narrow market niche.

145. Briefly explain the difference between high power distance and low power distance.

Power distance is the degree to which people accept inequality in power among institutions, organizations, and people. With high power distance, this inequality is accepted. With low power distance, people expect equality with respect to power.

140. List the four dimensions of national value systems identified by Hofstede.

Power distance, uncertainty avoidance, individualism/collectivism, and masculinity/femininity.

111. The approach to ethical decision making sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.

Practical

116. What are the two stages of crisis management?

Prevention and Preparation

137. Explain the differences between principle-based statements and policy-based statement in an organization's code of ethics.

Principle-based statement are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees. General statements of principle are often called corporate credos. Policy-based statements generally outline the procedures to be used in specific ethical situations. These situations include marketing practices, conflicts of interest, observance of laws, proprietary information, political gifts, and equal opportunities.

112. A decision to monitor employees' nonwork activities violates the right to .

Privacy

148. A(n) occurs when organizational accomplishment is less than established goals.

Problem

119. The approach to economic responsibility means that economic gain is the only social responsibility and can lead companies into trouble.

Profit-maximizing

160. Explain the difference between programmed and nonprogrammed decisions and give an example of each.

Programmed decisions involve situations that have occurred enough to enable decision rules to be developed and applied in the future. Examples include job skills required to fill certain positions, the reorder point for manufacturing inventory, and selection of freight routes for product deliveries. Nonprogrammed decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization. Examples are decisions to build a new factory, develop a new product or service, and enter a new geographical market.

159. A(n) is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.

Project manager

179. Describe reengineering and what it involves.

Reengineering, sometimes called business process reengineering, is the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Reengineering involves a shift to a horizontal structure based on teams. Basically, it means starting over, throwing out all the notions of how work was done and deciding on how it can best be done now.

139. is the duty to perform the task or activity an employee has been assigned.

Responsibility

means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance.

Risk

scientific management

Scientifically determined jobs and management practices as the way to improve efficiency and labor productivity.

134. What is social responsibility? Why is it considered a difficult concept to grasp?

Social responsibility is management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization. It can be a difficult concept to grasp because different people have different beliefs as to what will improve society's well being and it covers a range of ambiguous issues with respect to right or wrong.

70. environment consists of demographic factors, such as population density. a. Technological b. Sociocultural c. Legal-political d. Internal e. Economic

Sociocultural

58. Which dimension of the general environment represents the demographic characteristics, norms, customs, and values of the population within which the organization operates? a. Legal-political dimension b. Economic dimension c. Technological dimension d. Corporate culture dimension e. Sociocultural dimension

Sociocultural dimension

94. One of the roles that a small business manager may emphasize over their counterpart in a large organization is _____. a. information processing b. spokesperson c. liaison d. resource allocator e. leader

Spokesperson

118. A(n) is any group within or outside the organization that has a stake in the organization's performance.

Stakeholder

171. is the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.

Strategic management

101. define the action steps by which an organization intends to attain its strategic goals.

Strategic plans

172. The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is called a(n) .

Strategy

174. The use of managerial and organizational tools to direct resources toward accomplishing strategic results is known as _____.

Strategy Execution

126. List three of the six moral rights that should be considered during decision making.

Students can list any three of the following: the right of free consent, the right to privacy, the right of freedom of conscience, the right of free speech, the right to due process, and the right to life and safety.

52. is(are) included in an organization's task environment. a. Suppliers b. Accounting procedures c. Technology d. Government e. Demographic characteristics

Suppliers

supply chain management

Supply chain management refers to managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers.

systems thinking

Systems thinking is the ability to see both the distinct elements of a system or situation and the complex and changing interaction among those elements.

147. Explain NAFTA.

Taking effect in early 1994, the North American Free Trade Agreement (NAFTA) united the U.S., Mexico, and Canada into a multi-trillion dollar market. Over a fifteen- year period, this agreement removes tariffs and trade restrictions on most manufactured and agricultural products. Potential advantages of NAFTA center on its expectations: it is expected to spur growth, increase exports, and create jobs in all three countries. Conversely, many U.S. groups have a number of reservations. These include job loss to Mexico and weakened pollution standards.

68. Integrated Computers, Inc. wants to compile a profile of the customer it will target in its next promotional mailing. What environment would this be found in? a. Internal environment b. Task environment c. Work environment d. General environment e. None of these

Task Environment

100. The managerial skill that is least important at Barry's middle-level management position is: a. conceptual. b. human. c. technical. d. all of these skills are vital. e. none of these skills are important.

Technical

55. Scientific and technological advancements in a specific industry as well as in society at large are included in which general environment dimension? a. Sociocultural dimension b. Legal-political dimension c. Economic dimension d. Technological dimension e. Corporate culture dimension

Technological dimension

112. _____ change is related to the organization's production process, i.e., how the organization does its work.

Technology

Acceptance Theory of Authority

The acceptance theory of authority states that people have free will and will and can choose whether to follow management orders

efficiency

The amount of resources?raw materials, money, and people?used to produce a desired volume of output.

performance

The attainment of organizational goals by using resources in an efficient and effective manner.

management

The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources. This definition includes two important ideas: (1) the four functions of planning, organizing, leading, and control-ling, and (2) the attainment of organizational goals in an effective and efficient manner.

behavioral sciences approach

The behavioral sciences approach draws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an organizational setting.

universalist view

The classical perspective assumed a universalist view. Management concepts were thought to be universal; that is, whatever worked in terms of management style, bureaucratic structure, and so on in one organization would work in any other one.

organizational effectiveness

The degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do.

Effectiveness

The degree to which the organization achieves a stated goal.

45. A new drug has not been approved by the FDA to sell in the U.S. because further testing is needed. The company has a chance to sell its product in another country immediately to start recovering the costs of R & D and production three years ahead of time. This example places the decision in which of the categories from the text? a. The ethical domain b. The domain of free choice c. The legal domain d. The obstructive category e. The protective domain

The ethical domain

119. List and define the four major activities that must occur in order for management by objectives (MBO) to succeed.

The first step is setting goals. The setting of goals involves employees at all levels and should incorporate the principles of effective goal setting. Goals should be jointly determined by manager and employee, so as to increase the employee's level of commitment. The second step is developing action plans. These action plans will specify how the goals are to be achieved. Next, a progress review is important to make sure that the action plans are working. They may be formal or informal and the action plan should be changed if necessary. The last step is to determine if the goals have been achieved within the specified time period. This appraisal should factor into the setting of the next period's goals, allowing for feedback into the setting of the next set of goals.

117. Compare the four levels of goals and plans.

The highest level is the mission statement, which defines the organization's basic business scope and operations and specifies its reasons for existence. The second level is the level of strategic goals and plans. Those pertain to the organization as a whole and specify where the organization wants to be in the future. The third level is the tactical level, with a focus on outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals. The fourth and lowest level is the operational level, involving specific measurable results for departments, work groups, and individuals.

informal organization

The informal organization occurs in all formal organizations and includes cliques, informal networks, and naturally occurring social groupings.

132. Briefly explain the justice approach to ethics and then explain the three types of justice.

The justice approach is the ethical concept that moral decisions must be based on standards of equity, fairness, and impartiality. Distributive justice requires that different treatment of people be based only on substantive differences and not be based on arbitrary characteristics. Procedural justice requires that all rules be administered fairly. Rules should be clearly stated and consistently enforced. Compensatory justice requires that individuals should be compensated for the cost of their injuries by the party responsible and that individuals not be held responsible for matters over which they have no control.

92. What is the role of the liaison? a. The liaison role pertains to decisions about how to allocate people, time, equipment, money, and other resources to attain desired outcomes. b. The liaison role involves the initiation of change. c. The liaison role pertains to the development of information sources both inside and outside the organization. d. The liaison role involves handling ceremonial and symbolic activities for the department or organization. e. The liaison role involves formal negotiations and bargaining to attain outcomes for the manager's unit of responsibility.

The liaison role pertains to the development of information sources both inside and outside the organization.

166. Explain how a manager selects the desired decision in the managerial decision making process.

The manager tries to select the choice with the least amount of risk and uncertainty. Because some risk is inherent for most nonprogrammed decisions, managers try to gauge prospects for success. Under conditions of uncertainty, they might have to rely on their intuition and experience to estimate whether a given course of action is likely to succeed. Basing choices on overall goals and values can also effectively guide selection of alternatives. Decision about how to cope should be selected by relying on the company's values and goals of treatment of employees and building long-term relationships. Making choices depends on managers' personality factors and willingness to accept risk and uncertainty.

84. What is the role of the negotiator? a. The negotiator role involves formal negotiations and bargaining to attain outcomes for the manager's unit of responsibility. b. The negotiator role involves seeking current information from many sources. c. The negotiator role involves the initiation of change. d. The negotiator role involves resolving conflicts among subordinates or between the manager's department and other departments. e. The negotiator role pertains to the development of information sources both inside and outside the organization.

The negotiator role involves formal negotiations and bargaining to attain outcomes for the manager's unit of responsibility.

165. What are the six steps in the managerial decision making process?

The six steps are (1) recognize the decision requirement; (2) diagnose and analyze the causes; (3) develop alternatives; (4) select the desired alternative; (5) implement the chosen alternative; and (6) evaluate and determine feedback.

173. Define span of management and explain if there is an ideal span of management.

The span of management, or span of control, is the number of employees who report directly to one supervisor. There is not an ideal span of management. The number depends upon several characteristics of the situation including the nature of the work done by the subordinates, the locations where the work is done, the training and education of the workers, the level of definition of the task, the time available to the manager, and the manager's personal preferences and style.

169. List the three basic types of production technology.

The three basic types of production technology include small-batch and unit production, large-batch and mass production, and continuous process production.

143. Direct investing means that the company is involved in managing the productive assets in a foreign country. There are three options for direct investing. Name and compare these three options.

The three options are joint ventures, wholly-owned foreign affiliates, and greenfield ventures. With a joint venture, a company shares costs and risks with another firm, typically in the host country. This is often the fastest, cheapest, and least risky way to enter a foreign market. In the second option with a wholly-owned affiliate, the company has full ownership with all of the costs and risks associated with ownership, and enjoys full control of the affiliate. The most costly and risky direct investment is called a greenfield venture. The company builds a subsidiary from scratch in a foreign country. While the risks and costs are high, so is the control and the potential payoff.

180. Briefly describe the Boston Consulting Group matrix, including its dimensions, quadrants, and strategic recommendations.

The two dimensions of the matrix are business growth rate and market share. When growth is high and share is high, the SBU has the best situation and is called a star. When growth is low and share is high, the SBU is known as a cash cow. When growth is high but share is low, the SBU is a question mark. In the fourth quadrant, growth and share are both low. This is the worst situation, and the SBU is a dog. The strategic recommendations are: (1) invest in stars; (2) milk the cash cow; (3) invest in question marks to create stars or divest the question marks; and (4) divest the dogs.

178. What is the team approach to departmentalization and what are its main disadvantages?

There are at least two different types of teams. Cross-functional teams consist of employees from various functional departments who are responsible to meet as team and resolve mutual problems. While team members still report to their functional manager, they will also report to the team, perhaps to a team leader. Permanent teams consist of groups of employees who are brought together as a formal department. Similar to a divisional structure, although much smaller in the number of employees involved, permanent teams are often the result of reengineering. Disadvantages of the team structure include dual loyalties and conflict, the time and resources spent on meetings, and unintended/ineffective decentralization, which may occur because team members do not have the conceptual skills to be effective.

136. List and define the criteria of corporate social responsibility.

There are four criteria of corporate social responsibility. The first criterion of social responsibility is economic responsibility. The organization's basic responsibilities are to produce the goods and provide the services that society wants, while at the same time maximizing profits and wealth for owners and stockholders. The second criterion is legal responsibilities. Through its laws, each society has defined what it considers to be appropriate corporate behavior. According to this criterion, businesses are expected to fulfill their economic goals within the law. Ethical responsibilities make up the third criterion. These include behaviors not necessarily codified into law, nor do they necessarily serve the organization's direct economic interests. Discretionary responsibilities, the fourth criterion, are entirely voluntary and are guided by the organization's desire to make a social contribution not mandated by economics, law, and/or ethics.

classical perspective

This perspective contains three subfields, each with a slightly different emphasis: scientific management, bureaucratic organizations, and administrative principles.

1. Business has become a unified, global field as trade barriers fall, communication becomes faster and cheaper, and consumer tastes converge. a. True b. False

True

1. Ethics is the code of moral principles and values that governs the behaviors of individuals or groups. a. True b. False

True

1. In today's turbulent and hypercompetitive global environment, managers must help their companies innovate more than ever. a. True b. False

True

1. Organizational change refers to the adoption of a new idea or behavior by an organization. a. True b. False

True

1. The deployment of organizational resources to achieve strategic goals refers to organizing. a. True b. False

True

10. Seeking cheaper sources of materials or labor offshore is called offshoring. a. True b. False

True

10. The acceptance of mistakes, the freedom to discuss ideas, and the assignment of nonspecialists to problems are characteristics of creative organizations or departments. a. True b. False

True

10. The approach that managers use to make decisions usually falls into one of three types - the classical model, the administrative model, and the political model. a. True b. False

True

10. The practical approach to ethical decision making says that ethical issues are not always clear cut. a. True b. False

True

11. An idea incubator is in-house program that provides a safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics. a. True b. False

True

11. An organization is a social entity that is goal directed and deliberately structured. a. True b. False

True

11. The labor market is made up by people in the environment who can be hired to work for an organization. a. True b. False

True

11. The number of employees reporting to a supervisor is his or her span of management. a. True b. False

True

12. Direct investing means that the company is involved in managing the productive assets, which distinguishes it from other entry strategies that permit less managerial control. a. True b. False

True

12. The administrative model of decision making describes how managers actually make decisions in difficult situations. a. True b. False

True

12. The technological dimension of the external environment includes scientific and technological advancements in a specific industry as well as in society at large. a. True b. False

True

12. Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager. a. True b. False

True

121. Research has shown that strategic thinking and planning positively affect a firm's performance and financial success. a. True b. False

True

123. Top managers and chief executives have the final responsibility for strategic planning. a. True b. False

True

127. Strategic partnerships are the current trend, rather than mergers and acquisitions. a. True b. False

True

129. Some companies hire competitive intelligence professionals to scan the external environment and provide data and research on relevant domestic and global trends. a. True b. False

True

13. Labor market forces affecting organizations right now include the growing need for computer-literate knowledge workers and the necessity for continuous investment in human resources through recruitment, education, and training. a. True b. False

True

133. The task environment sectors are the most relevant to strategic behavior and include the behavior of competitors, customers, suppliers, and the labor supply. a. True b. False

True

14. The horizontal linkage model is increasingly important in high pressure business environments that require rapidly developing and commercializing products and services. a. True b. False

True

14. The international dimension of the external environment represents events originating in foreign countries as well as opportunities for U.S. companies in other countries. a. True b. False

True

14. The ultimate responsibility of managers is to achieve high performance by balancing efficiency and effectiveness. a. True b. False

True

14. When a company builds a subsidiary from scratch in a foreign country it is called a greenfield venture. a. True b. False

True

140. Differentiation, cost leadership, and focus are three of Porter's competitive strategies. a. True b. False

True

15. A tall structure is a management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels. a. True b. False

True

15. Efficiency can be calculated as the amount of resources used to produce a product or service. a. True b. False

True

15. If Johnson Lumber provides trees for Westvaco Paper Manufacturing, then Johnson Lumber is considered a supplier for Westvaco. a. True b. False

True

15. Operational planning specifies plans for department managers, supervisors, and individual employees. a. True b. False

True

15. Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist. a. True b. False

True

17. An organization's mission describes its reason for existence. a. True b. False

True

17. For companies to operate effectively, the amount of centralization or decentralization should fit the firm's strategy. a. True b. False

True

17. Organizations must manage environmental uncertainty to be effective. a. True b. False

True

17. Procedural justice requires that rules be stated clearly, consistently and impartially enforced, and administered fairly. a. True b. False

True

18. A manager's ability to work with and through other people and to work effectively as a group member is called human skills. a. True b. False

True

18. At Fox End, people are grouped together in departments by common skills and work activities, including a sales department and a production department. This is an example of vertical functional approach. a. True b. False

True

18. Skunkworks are a separate small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business. a. True b. False

True

18. Strategic plans and goals are those that focus on where the organization wants to be in the future and pertain to the organization as a whole. a. True b. False

True

18. The process of forming alliances among managers is called coalition building. a. True b. False

True

18. The sociocultural dimension of the general environment includes societal norms and values. a. True b. False

True

18. The sub-divisions of the international environment are the economic, the sociocultural, and the legal-political environments. a. True b. False

True

19. A unit that is separate from the mainstream of the organization and is responsible for developing and initiating innovations is called a new-venture team. a. True b. False

True

19. Management by objectives, single-use plans, and standing plans are all management planning approaches. a. True b. False

True

19. The economic dimension of the general environment includes consumer purchasing power. a. True b. False

True

2. A decision is a choice made from available alternatives. a. True b. False

True

2. A desired future state that the individual or organization attempts to realize is a goal. a. True b. False

True

20. Goals are most effective when they are specific, measurable, challenging and linked to rewards. a. True b. False

True

20. Good intuitive decision making is based on an ability to recognize patterns at lightning speed. a. True b. False

True

20. Individuals, at the preconventional level, are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences. a. True b. False

True

20. One of the biggest mistakes during turbulent times is managers' failure to comprehend and adapt to the rapid pace of change in the world around them. a. True b. False

True

21. A political lobbyist for General Motors fills an essential boundary-spanning role. a. True b. False

True

21. Administrative and political decision making procedures and intuition have been associated with high performance in unstable environments in which decisions must be made rapidly and under more difficult conditions. a. True b. False

True

21. Culture change pertains to the whole organization. a. True b. False

True

22. An MNC is managed as an integrated worldwide business system. a. True b. False

True

22. Culture change refers to a major shift in the norms, values, attitudes, and mindset of the entire organization. a. True b. False

True

22. In order for goals to be effective, they should be challenging but realistic. a. True b. False

True

22. Managers confront a decision requirement in the form of either a problem or an opportunity. a. True b. False

True

22. Managers use conceptual, human, and technical skills to perform the four management functions of planning, organizing, leading, and controlling in all organizations. a. True b. False

True

22. More organizations are requiring all employees to perform boundary-spanning because environmental shifts can happen quickly. a. True b. False

True

23. According to research, managers most enjoy activities such as leading others, networking, and leading innovation. a. True b. False

True

23. Competitive intelligence professionals are really just in-house snoops who obtain information about rival companies. a. True b. False

True

23. Principled level of moral development is also referred to as the postconventional level. a. True b. False

True

24. Geocentric companies are truly world-oriented and favor no specific country. a. True b. False

True

26. Becoming a successful manager means thinking in terms of building teams and networks, becoming a motivator and organizer within a highly interdependent system of people and work. a. True b. False

True

26. The best alternative is the one in which the solution best fits the overall goals and values of the organization and achieves the desired results using the fewest resources. a. True b. False

True

26. Three of the most popular and effective OD activities are team building, survey feedback, and large-group interventions. a. True b. False

True

27. Most top executives routinely work at least 12 hours a day and spend 50 percent or more of their time traveling. a. True b. False

True

28. Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff. a. True b. False

True

29. A stakeholder is any group within or outside the organization that has a stake in the organization's performance. a. True b. False

True

29. Many U.S. managers fail to realize that the values and behaviors that typically govern how business is done in the United States do not translate to the rest of the world. a. True b. False

True

29. Refreezing is the reinforcement stage of organization development in which individuals acquire a desired new skill or attitude and are rewarded for it by the organization. True False

True

29. The divisional structure fosters excellent coordination within divisions, but coordination across divisions is often poor. a. True b. False

True

29. Three critical planning methods are contingency planning, building scenarios, and crisis planning. a. True b. False

True

3. The criterion traditionally used to classify countries as developed or developing is per capita income. a. True b. False

True

3. The framework in which the organization defines how tasks are divided, resources are deployed and departments are coordinated is called organizational structure. a. True b. False

True

3. There has been strong concern recently about climate change such as global warming caused by greenhouse gases, most notably carbon dioxide. a. True b. False

True

30. Feedback is the part of monitoring that assesses whether a new decision needs to made. a. True b. False

True

30. Special interest groups include trade associations, political action committees and consumerists. a. True b. False

True

31. A change agent is an OD specialist who contracts with an organization to facilitate change. a. True b. False

True

31. A narrative based on events within the organization that is frequently repeated is called an organizational story. a. True b. False

True

31. Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations refers to sustainability. a. True b. False

True

31. People who prefer simple, clear-cut solutions to problems use the directive style. a. True b. False

True

31. The matrix approach can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible and adaptable. a. True b. False

True

32. Collectivism means a preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests. a. True b. False

True

32. Economic, legal, ethical, and discretionary responsibilities are the four areas of social responsibility which can be used to evaluate corporate social performance. a. True b. False

True

32. If Renae, manager at Leak Free Roofing, wanted to develop a contingency plan for Leak Free, she would need to look at factors such as new equipment, the economy, and the company workers' compensation cases. a. True b. False

True

32. In the unfreezing step, participants must be made aware of problems and be willing to change. a. True b. False

True

32. Managers with an analytical decision style like to consider complex solutions based on as much data as they can gather. a. True b. False

True

32. One major disadvantage of the virtual network approach is the lack of hands-on control. a. True b. False

True

33. A project manager is a person responsible for coordinating the activities of several departments for the completion of a specific project. a. True b. False

True

33. According to the GLOBE Project, a society with a high performance orientation places high emphasis on performance and rewards people for performance improvements and excellence. a. True b. False

True

33. Economic responsibility, carried to the extreme, is called the profit-maximizing view. a. True b. False

True

33. The communication and education approach for overcoming resistance to change should be used when the change is technical and the users need accurate information and analysis to understand change. a. True b. False

True

33. The mythical sales representative at Robinson Jewelers who delivered a wedding ring directly to the church because the ring had been ordered late is an example of a hero. a. True b. False

True

34. A ceremony is a planned activity at a special event that is conducted for the benefit of an audience. a. True b. False

True

34. According to the GLOBE Project, gender differentiation refers to the extent to which a society maximizes gender role differences. a. True b. False

True

34. Individuals with a conceptual decision-making style are more socially oriented than those with an analytical style. a. True b. False

True

34. Some firms engage in crisis planning to enable them to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization. a. True b. False

True

34. Two possible tactics for overcoming resistance to change are coercion and negotiation. a. True b. False

True

35. Ethical responsibility includes behaviors that are not necessarily codified into law and may not serve the corporation's direct economic interests. a. True b. False

True

36. Most bad decisions are errors in judgment that originate in the human mind's limited capacity and in the natural biases of the manager. a. True b. False

True

36. The distinctive feature of the project manager position is that the person is not a member of one of the departments begin coordinated. a. True b. False

True

37. Justifying past decisions is a common bias of managers. a. True b. False

True

38. A results-oriented culture that values competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results is called the achievement culture. a. True b. False

True

38. The pure functional structure is appropriate for achieving internal efficiency goals. a. True b. False

True

39. A high-context interaction requires more time because a relationship has to be developed, and trust and friendship must be established. a. True b. False

True

4. An ambidextrous approach means incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations. a. True b. False

True

4. Planning is the act of determining the organization goals and the means for achieving them. a. True b. False

True

40. Ethnocentrism refers to a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values. a. True b. False

True

41. A chief ethics officer is a company executive who oversees all aspects of ethics and legal compliance. a. True b. False

True

41. Corporate culture plays a key role in creating an organizational climate that enables learning and innovative responses to threats from the external environment, challenging new opportunities, or organizational crises. a. True b. False

True

41. Stretch goals are typically so far beyond the current levels that people have to be innovative to find ways to reach them. a. True b. False

True

42. Groupthink refers to the tendency of people in groups to suppress contrary opinions. a. True b. False

True

42. The disclosure by an employee of illegal, immoral, or illegitimate practices by the organization is called whistle- blowing. a. True b. False

True

42. When an organization pays little attention to cultural values and instead focuses on business results, success will be difficult to sustain in the long run. a. True b. False

True

43. Managers are often concerned good citizenship will hurt performance. a. True b. False

True

44. Point-counterpoint is a decision-making technique in which people are assigned to express competing points of view. a. True b. False

True

7. The main difference between risk and uncertainty is that with risk you know the probabilities of the outcomes. a. True b. False

True

7. The mission is the basis for the strategic level of goals and plans, which in turn shapes the tactical and operational level. a. True b. False

True

7. The moral agent is an individual who must make an ethical choice in an organization. a. True b. False

True

8. An example of global outsourcing is seen when Gap, Inc uses low-cost Caribbean labor to cheaply produce its clothing, and then finishes off and sells its clothing in the United States. a. True b. False

True

8. Controlling involves monitoring employee's activities and taking corrective action as necessary. a. True b. False

True

8. Current employees, management, and especially corporate culture are part of an organization's internal environment. a. True b. False

True

9. Leading is the use of influence to motivate employees to achieve organizational goals. a. True b. False

True

9. Line departments perform tasks that reflect the organization's primary goal and mission. a. True b. False

True

9. McDonalds, Burger King, and Checkers are competitors since all three sell fast food to individuals. a. True b. False

True

A situation where the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable refers to ambiguity. a. True b. False

True

69. Which of these means that managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes? a. Adaptation b. Risk c. Uncertainty d. Knowledge e. Education

Uncertainty

131. List the four approaches that are used to describe values for guiding ethical decision making. Briefly describe each.

Utilitarian approach is the ethical concept that moral behaviors produce the greatest good for the greatest number. Individualism approach is the ethical concept that acts are moral when they promote the individual's best long-term interests. This will eventually lead to the greatest good. Moral-rights approach is the ethical concept that moral decisions are those that best maintain the rights of those people affected by them. Justice approach is the ethical concept that moral decisions must be based on standards of equity, fairness, and impartiality.

156. The structure means that the firm subcontracts many of its major functions to separate companies and coordinates their activities from a small headquarters organization.

Virtual Network

75. Jefferson and Squire is an advertising firm that is viewed as having a fast-paced and posh corporate culture. The company uses bold coloring with expensive accents in all office décor. This exemplifies which level of corporate culture? a. Visible artifacts b. Underlying assumptions c. Expressed values d. Heroes e. Ceremonies

Visible artifacts

75. The individual identity includes which of the following? a. Generalist, coordinates diverse tasks b. Gets things done through others c. Works relatively independently d. A network builder e. Works in highly interdependent manner

Works relatively independently

59. Which of the following describes a person who is passionately committed to a new product of idea despite rejection by others? a. An idea champion b. A sponsor c. A new-venture team d. A skunkwork e. An investor

a. An idea champion

50. According to Fast Company, in 2012, was ranked as the World's Most Innovative Company. a. Apple b. Nintendo c. Nokia d. Sony e. Procter & Gamble

a. Apple

72. is the final step in the MBO process. a. Appraise overall performance b. Develop an action plan c. Review progress d. Set goals e. Conduct periodic checkups

a. Appraise overall performance

50. Which of these can best describe organizing? a. Assigning responsibility for task accomplishment b. Using influence to motivate employees c. Monitoring activities and making corrections d. Selecting goals and ways to attain them e. None of these

a. Assigning responsibility for task accomplishment

117. Which of these styles is adopted by managers who have a deep concern for others as individuals? a. Behavioral b. Classical c. Analytic d. Logical e. Conceptual

a. Behavioral

46. The Digitec company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make information technology available to people in places like rural Africa and rural India. This is known as what type of strategy? a. Bottom of the pyramid strategy b. Skimming the barrel strategy c. Cream of the crop strategy d. Top of the peak strategy e. Base price strategy

a. Bottom of the pyramid strategy

123. Which of the following defines a technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for decision making? a. Brainstorming b. Groupthink c. Point-counterpoint d. Brainwriting e. Devil's advocate

a. Brainstorming

61. Which of the following means that all the information the decision-maker needs is fully available? a. Certainty b. Risk c. Uncertainty d. Ambiguity e. None of these

a. Certainty

99. TooEasy, Inc. is changing from a manual ordering system to a computer-based ordering system. As part of the implementation procedures, the company invests in detailed, comprehensive training classes. What approach to change implementation is TooEasy using? a. Communication and education b. Top management support c. Participation d. Coercion e. Negotiation

a. Communication and education

99. Which is an advantage of the divisional structure? a. Concern for customers' needs is high. b. There is little duplication of services across divisions. c. There is good coordination across divisions. d. Top management retains tight control of the organization. e. There is no competition for corporate resources.

a. Concern for customers' needs is high.

47. Which of the following is a choice made from available alternatives? a. Decision b. Plan c. Goal d. Tactic e. Strategy

a. Decision

71. Which of the following is the basis for grouping positions into departments and departments into the total organization? a. Departmentalization b. Centralization c. Decentralization d. Formalization e. Specialization

a. Departmentalization

103. "When did it occur" and "how did it occur" are questions associated with which step of the decision making process? a. Diagnosis and analysis of causes b. Recognition of decision requirement c. Development of alternatives d. Selection of desired alternative e. None of these

a. Diagnosis and analysis of causes

91. You are the production manager for Connor's Construction, Inc. You decide to change the production procedure to increase efficiency. One of your long-time foremen is resisting the change, insisting that the idea won't work. Which of the following obstacle is he exhibiting? a. Different assessment and goals b. Uncertainty about the future c. A lack of trust d. All of these e. Uncertainty about the future and a lack of trust only

a. Different assessment and goals

66. Resource development, infrastructure, and exchange rates all describe which dimension in the international environment? a. Economic b. Legal c. Political d. Sociocultural e. Technological

a. Economic

72. Which of these employee behaviors matches with the postconventional level of personal moral development? a. Empowered employees, full participation b. Task accomplishment c. Act in own interest d. Work group collaboration e. Autocratic

a. Empowered employees, full participation

90. means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives. a. Ethical leadership b. Followership c. Corporate espionage d. Command-and-control approach e. Concern for production leadership

a. Ethical leadership

101. is the last step in the decision making process. a. Evaluation and feedback b. Development of alternatives c. Implementation of chosen alternative d. Selection of desired requirement e. Recognition of decision requirement

a. Evaluation and feedback

104. Which of these is a low-context culture? a. German b. Chinese c. Korean d. Arab e. Japanese

a. German

93. Recent research by the GLOBE project has extended research and offered new insights for managers. a. Hofstede's b. Walton's c. Weber's d. Fayol's e. Gilbreth's

a. Hofstede's

54. Which of these is the use of influence to motivate employees to achieve organizational goals? a. Leading b. Controlling c. Organizing d. Planning e. Staffing

a. Leading

77. Rooftop International, Inc. buys insurance against host government takeover when investing in foreign countries. This is an example of which sector of the international environment? a. Legal-political b. Sociocultural c. Technological d. Economic e. Infrastructure

a. Legal-political

58. Which department performs tasks that reflect the organization's primary goals and mission? a. Line b. Staff c. Primary d. Functional e. Strategic planning

a. Line

150. Sherri has been asked to participate on a cross-functional task force that is charged with performing an audit checklist for her advertising firm. The task force will analyze organizational strengths and weaknesses as they apply to the firm. Sherri's task is to analyze management quality, staff quality, degree of centralization, and organizational charts. This level of analysis pertains to which area of the audit? a. Management and organization b. Marketing c. Human resources d. Research and development e. Production

a. Management and organization

49. Which of these is(are) primarily concerned with tactical goals/plans? a. Middle management b. Board of directors c. Consultants d. Senior management e. Lower management

a. Middle management

55. refers to a broadly stated definition of the organization's basic business scope and operations that distinguishes it from similar types of organizations. a. Mission statement b. Goal statement c. Management by objective d. Goal setting e. Corporate competitive-value statement

a. Mission statement

59. to ethical decision-making is consistent with free consent, privacy, and free speech. a. Moral-rights approach b. Individualism approach c. Utilitarian approach d. Justice approach e. Dual-economic approach

a. Moral-rights approach

101. Which approach should a group use to resist change if the group has power over implementation and if the group will lose out in the change? a. Negotiation b. Top management support c. Participation d. Coercion e. Education

a. Negotiation

103. Before implementing new changes in work schedules, Trudy's Trinkets works with the union to ensure a smooth transition. What approach to change is this company using? a. Negotiation b. Top management support c. Participation d. Coercion e. Education

a. Negotiation

63. Which of the following refer to specific results expected from individuals? a. Operational goals b. Tactical goals c. Strategic goals d. Operational plans e. Mission statements

a. Operational goals

80. A.R.C. is a large non-profit humanitarian aid organization that has been forced to pull out of several African markets in recent years due to civil wars and large-scale violence. This demonstrates which frequently cited problem for international companies? a. Political instability b. Communist governments c. Economic instability d. Political risk e. Financial risk

a. Political instability

83. refers to the degree to which people accept inequality in authority among institutions, organizations, and people. a. Power distance b. Uncertainty avoidance c. Individualism d. Collectivism e. Masculinity

a. Power distance

66. In what stage of personal moral development is a person mostly concerned with external rewards and personal consequences of an action? a. Preconventional b. Conventional c. Principled d. Discretionary e. None of these

a. Preconventional

59. At the start of every shift, Carl, a delivery truck driver, plans out his route based on the addresses that he will be visiting to drop off packages. This can best be described as what kind of decision? a. Programmed b. Nonprogrammed c. Wicked d. Administrative e. Intuitive

a. Programmed

107. Which of the following leads to strong coordination across functional areas and greater flexibility in responding to changes in the environments? a. Reengineering b. Layoffs c. Downsizing d. A temporary committee e. An ad hoc committee

a. Reengineering

involves looking at trends and discontinuities and imagining possible alternative future to build a framework within which unexpected future events can be managed. a. Scenario building b. Crisis planning c. Contingency planning d. Trend management e. Caution planning

a. Scenario building

96. Which of the following countries possesses a high degree of assertiveness? a. Spain b. Sweden c. Japan d. Iceland e. Switzerland

a. Spain

76. There are many organizational development activities, which are effective in solving many different problems. _____ enhances the cohesiveness and success of organizational groups. a. Team building b. Survey feedback c. Intergroup activities d. Process-Consultation activities e. Symbolic management

a. Team building

89. _____ is the lack of information about future events. a. Uncertainty b. Risk c. Worry d. Stress e. Change resistance

a. Uncertainty

68. Barney and Betty work at Mountain Peak, Inc. Although they both work on the assembly line, they have the authority to make many decisions about their job. Mountain Peak can be said to have: a. a high degree of decentralization. b. a wide span of management. c. a high degree of centralization. d. a narrow span of management. e. no management.

a. a high degree of decentralization.

52. Bierderlack has a policy that states that more than three absences in a six-month period shall result in a suspension. Colleen, the manager, has just decided to suspend one of her shift employees for violating this policy. This is an example of: a. a programmed decision. b. a nonprogrammed decision. c. an insignificant decision. d. poor management. e. personal grudge.

a. a programmed decision.

73. If you built a computer company in Africa and then found that your product was having difficulty being distributed to customers because of the road system, your problem would be related to: a. an inadequate infrastructure. b. an economy incapable of supporting growth. c. a poor resource market. d. a poor product market. e. none of these.

a. an inadequate infrastructure.

67. The leadership style matches with the preconventional level of personal moral development. a. autocratic b. team oriented c. servant leadership d. guiding/encouraging e. transforming

a. autocratic

170. If Swift Stock's traditional brokerage business were to face a declining business growth, it may need to be reclassified as a . a. cash cow b. dog c. star d. question mark e. dead business

a. cash cow

110. Nikki could hold , which are planned activities at special events to provide examples of company values. a. ceremonies b. slogans c. symbols d. pictures of heroes e. none of these

a. ceremonies

36. The adoption of a new idea or behavior by an organization is known as organizational . a. change. b. development. c. structure. d. intervention. e. responsibility.

a. change.

104. Innovative Creations Corporation is designed along functional lines. New product development is very slow and the process is plagued by many problems. One of the problems is that the people in marketing never communicate with the people in production. This is an example of poor . a. coordination b. planning c. motivating d. leading e. controlling

a. coordination

163. The strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be more efficient than competitors. a. cost leadership b. differentiation c. focus d. internal growth e. liquidation

a. cost leadership

64. The role of the is to prevent people in other roles from adopting a bad idea. a. critic b. inventor c. sponsor d. ombudsman e. obstructionist

a. critic

45. Managers are often referred to as: a. decision makers. b. peace makers. c. conflict creators. d. an unnecessary layer of employees. e. profit suppressor.

a. decision makers.

118. With a(n) strategy, the organization attempts to develop innovative products unique to the market. a. differentiation b. integration c. reengineering d. cost leadership e. defensive

a. differentiation

75. Self-contained unit structure is a term used for: a. divisional structure. b. functional structure. c. term structure. d. matrix structure. e. virtual network structure.

a. divisional structure.

62. The degree to which an organization achieves a stated goal refers to: a. effectiveness. b. synergy. c. conceptual skill. d. efficiency. e. human skill.

a. effectiveness

46. When work specialization is extensive: a. employees perform a single task. b. employees perform many tasks. c. employees are often highly challenged. d. employees are often inefficient. e. jobs tend to be large.

a. employees perform a single task.

76. Relative to the functional structure, the divisional structure: a. encourages decentralization. b. has a higher degree of work specialization. c. has a more pronounced division of labor. d. has excellent coordination across departments. e. results in an efficient use of resources.

a. encourages decentralization.

100. A cultural attitude marked by the tendency to regard one's own culture as superior to others is called: a. ethnocentrism. b. polycentrism. c. geocentrism d. technocentrism. e. none of these.

a. ethnocentrism.

42. The innovation strategy for changing products and technologies that involves designing the organization to encourage creativity and the initiation of new ideas is known as . a. exploration b. cooperation c. entrepreneurship d. idea incubator e. horizontal linkage

a. exploration

98. The adaptability culture emerges in an environment that requires response and decision making. a. fast; high-risk b. fast; low-risk c. slow; high-risk d. slow; low-risk e. regulated; low-risk

a. fast; high-risk

92. The biggest advantage to a virtual network approach is and on a global scale. a. flexibility; competitiveness b. coordination; organization c. communication; organization d. communication; no cost e. flexibility; coordination

a. flexibility; competitiveness

165. Mingles, Inc. concentrates its efforts on its target market of 18 to 25 year olds. It is using a(n) strategy. a. focus b. differentiation c. cost leadership d. multidomestic e. universal strategy

a. focus

OTHER: A 47. Companies that have a have a competitive edge. a. globally b. regionally c. nationally d. strategically e. "customers first"

a. globally

99. A interaction requires more time because a relationship has to be developed, and trust and friendship must be established. a. high-context b. sales c. business d. low-context e. personal

a. high-context

109. Makai's Marketing Mix (MMM) does not use its resources wisely. The employees at MMM spend too much time in meetings and not enough time focusing on the task at hand. MMM's management should consider changing the organizational structure from to . a. horizontal, vertical b. team based, horizontal c. vertical, team based d. mechanistic, rigid e. team-based, virtual network

a. horizontal, vertical

43. With its "community of interest" in a preFacebook era, the Grateful Dead band's ability to is a principle factor for its success over several decades. a. innovate b. communicate c. generate revenue d. compete e. monitor

a. innovate

63. John has tremendous technical skills and frequently comes up with valuable ideas. However, he has clueless about how to promote it within the organization. John is a good example of a(n) . a. inventor. b. idea champion. c. sponsor. d. critic. e. an in-transition employee.

a. inventor.

155. The star has a: a. large market share in a rapidly growing industry. b. large market share in a slow growth industry. c. small market share in a rapidly growing industry. d. small share of a slow growth market. e. moderate market share in a slow growth industry.

a. large market share in a rapidly growing industry.

107. In a study by Kotter and Haskett evidence is provided to support the claim that is important for performance. a. managing cultural values b. leading partnerships within an industry c. surveying the external environment d. managing client relationships as boundary spanners e. empowering employees

a. managing cultural values

80. A formal chain of command for both functional and divisional relationships is provided by the approach to structure. a. matrix b. vertical functional c. divisional d. product e. team-based

a. matrix

86. The is the product or functional boss, who is responsible for one side of the matrix. a. matrix boss b. production supervisor c. department boss d. top leader e. two-boss employee

a. matrix boss

56. Good examples of decisions are strategic decisions. a. nonprogrammed b. programmed c. insignificant d. recurring e. structured

a. nonprogrammed

121. When managers base decisions on what has worked in the past and fail to explore new options, they are: a. perpetuating the status quo. b. being influenced by emotions. c. being overconfident. d. justifying past actions. e. seeing what they want to see.

a. perpetuating the status quo.

92. Statements that define fundamental values and reference organizational responsibilities, products and employees are often called . a. principle-based b. policy-based c. ethically-based d. codified e. codes of organizational integrity

a. principle-based

54. If your instructor has an attendance policy, she/he is using a(n): a. programmed decision. b. unique approach. c. condition of ambiguity. d. nonprogrammed decision. e. none of these.

a. programmed decision.

94. An advantage of functional structures is the: a. resulting economies of scale. b. enlarged tasks for employees. c. easy pinpointing of responsibility for product problems. d. development of general management skills. e. flexibility in an unstable environment.

a. resulting economies of scale.

57. The official goals of the organization are best represented by the . a. strategic goals b. tactical goals c. operational goals d. competitive goals e. none of these

a. strategic goals

83. With a philosophy of , managers weave environmental and social concerns into every strategic decision, revise policies and procedures to support these efforts and goals. a. sustainability b. conservation c. ethics d. preservation e. human concerns

a. sustainability

45. One of the important ideas in the text's definition of management is: a. the management functions of planning, organizing, leading, and controlling. b. the attainment of societal goals. c. effectiveness is more important than efficiency. d. management is unique to for-profit organizations. e. efficiency is more important than effectiveness.

a. the management functions of planning, organizing, leading, and controlling.

62. Disk Replacement Services has just completed a procedure manual to handle employee grievances. One of the main criteria is to make it clear to employees that rules will be administered fairly and consistently. Disk Replacement operates on: a. the procedural justice approach. b. the utilitarian approach. c. the individual approach. d. the defensive approach. e. the free-choice approach.

a. the procedural justice approach.

83. Culture can be defined as: a. the set of key values, beliefs, understandings, and norms shared by members of an organization. b. the ability to speak different languages. c. an object, act, or event that conveys meaning to others. d. a narrative based on true events that is repeated frequently and shared by organizational employees. e. none of these.

a. the set of key values, beliefs, understandings, and norms shared by members of an organization.

68. The four positions on the possibility of failure scale include certainty, risk, ambiguity, and . a. uncertainty b. conflict c. necessity d. indecision e. possibility

a. uncertainty

116. Mondavi Corporation has a finance department, a marketing department, and a production department. Mondavi: a. uses a functional structure. b. has a geographic structure. c. uses a divisional structure. d. uses product-based structure. e. uses a matrix structure.

a. uses a functional structure.

52. Robbie's Robots decided to continue operations at one plant while shutting down another. The decision was justified on the basis of what was best for the total corporation. This is an example of the: a. utilitarian approach. b. individualism approach. c. moral-justice approach. d. justice approach. e. illegal approach.

a. utilitarian approach.

53. Caleb is a manager at Computer-Care Company. He is expected to consider the effort of each decision alternative on all parties and select the one that optimizes the satisfaction for the greatest number of people. This is an example of the: a. utilitarian approach. b. individualism approach. c. moral-justice approach. d. justice approach. e. soft-line managerial approach.

a. utilitarian approach.

90. In the structure, the organization is viewed as a central hub surrounded by a network of outside specialists which are sometimes spread all over the world. a. virtual network b. matrix c. functional d. divisional e. geographic

a. virtual network

69. Critical management missteps include: a. poor communication skills. b. reactionary behavior. c. inability to build a team. d. failure to adapt. e. all of these.

all of these

The promotion to first line manager took place just six weeks ago for Barry Miller. He was well qualified for the promotion, but the new job still required a lot of training. One of the challenges has been to coordinate the production of his team with the needs of the sales department and with the availability of raw materials from his suppliers. Setting priorities and developing schedules to accomplish the work is a part of Barry's job that he has really enjoyed. The challenges to maintain high rapport and to build a strong team with his employees have already brought him a lot of satisfaction. In reflecting about the last six weeks, Barry concludes that he is very happy about his new job. In his job, Barry needs to: a. plan. b. organize. c. lead. d. control. e. all of these.

all of these plan, organize, lead, control

92. Heroes are important to an organization due to the fact that they: a. exemplify key values of the organization. b. exemplify a strong corporate culture. c. serve as examples to other employees. d. all of these. e. none of these.

all of these.

53. Nordstrom Department store's "No questions asked - Return's Policy" is an example of a(n): a. programmed decision. b. nonprogrammed decision. c. novel decision. d. poor management. e. unstructured decision

asked - Return's Policy" is an example of a(n): a. programmed decision.

98. Managers, in today's work environment, rely less on and more on leadership. a. coordination and communication; control and command b. autocratic; empowering c. empowerment and innovation; productivity and efficiency d. effectiveness and efficiency; quality and profit e. ethics and social responsibility; profit and cost-savings

autocratic; empowering

82. Which model of decision making is associated with satisficing, bounded rationality, and uncertainty? a. Classical b. Administrative c. Quantitative d. Rational e. Political

b. Administrative

87. is considered a decision that enables an individual or company to benefit at society's expense. a. A legal behavior b. An unethical behavior c. An economic responsibility d. A discretionary responsibility e. A responsible behavior

b. An unethical behavior

Scenario - Theresa Teutul Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions. She recognized that the color television market in the late 1970's was facing significant challenges. After two decades of highly successful development and marketing, the sales of color televisions had slowed and replacing older color television sets largely created her market. 166. Using the logic of the BCG grid, Theresa should recognize that her strategic business unit was in which quadrant? a. Star b. Cash Cow c. Question Mark d. Dog e. None of these

b. Cash Cow

78. Most people have learned to conform to expectations of good behavior expected by colleagues, family, friends, and society. They are in what stage of moral development? a. Preconventional b. Conventional c. Discretionary d. Principled e. Traditional

b. Conventional

89. Alabama Airlines has three planning specialists who help division managers develop their own division plans. Serving as consultants to the divisions, the planning specialists give advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is utilizing what approach to the planning function? a. Centralized planning department b. Decentralized planning staff c. Planning task force d. Centralized planning committee e. TQM

b. Decentralized planning staff

is the step in the decision-making process in which managers analyze underlying causal factors associated with the decision situation. a. Analysis b. Diagnosis c. Recognition d. Judgment e. Identification

b. Diagnosis

162. Which of the following strategies involves rewarding an employee's innovation? a. Cost leadership b. Differentiation c. Focus d. Internal growth e. Liquidation

b. Differentiation

is the responsibility that goes beyond societal expectations to contribute to the community welfare. a. Ethical responsibility b. Discretionary responsibility c. Economic responsibility d. Legal responsibility e. Technical responsibility

b. Discretionary responsibility

77. The conventional stage of moral development is best described by which of the following statements? a. I won't do that because the boss will be upset with me. b. Everybody else is doing it, so it must be okay. c. I know this is not right, and I will not do it, even if everyone else is. d. What am I going to get from making this decision? e. All of these.

b. Everybody else is doing it, so it must be okay.

48. places an emphasis on a worldwide perspective. a. Polycentric companies b. Geocentric companies c. Ethnocentric companies d. Regiocentric companies e. Domestic companies

b. Geocentric companies

126. refers to the tendency of people in groups to suppress contrary opinions. a. Point-counterpoint b. Groupthink c. Devil's advocacy d. Escalating commitment e. Brainstorming

b. Groupthink

101. Which of the following is defined as a culture in which communication is used to enhance personal relationships? a. Interpersonal culture b. High-context culture c. Power culture d. Low-context culture e. Family-oriented culture

b. High-context culture

Sharon Cannon, a U.S. native, was an MBA student in Detroit, Michigan, with a managerial position at the Ford Motor Company plant. She was invited to join a company that had entered into a joint venture with a German firm to manage a Volkswagen plant. Sharon would be under contract for one year, with an option to renew for a total of three years. Her salary would be 350% more than she was currently earning, and she would be given two all- expenses paid vacations each year. The money and the benefits sounded very nice, but Sharon wasn't sure what the best choice would be. 111. Which of Hofstede's value dimensions would be accurate for Sharon's native culture? a. Highest femininity b. Highest individualism c. Lowest masculinity d. Highest power distance e. Highest uncertainty avoidance

b. Highest individualism

57. CRL, a European plastics manufacturer, is considering forming an alliance with a U.S. military goods manufacturer to develop a new type of polymer that can be used for international industrial and military applications. Such a partnership represents what type of direct investment? a. Franchising b. Joint Venture c. Wholly owned affiliate d. Greenfield venture e. Outsourcing

b. Joint Venture

78. Which of the following is NOT a legal-political factor in the international environment? a. Laws and regulations b. Language c. Tariffs, quotas, taxes d. Political risk e. Government takeovers

b. Language

56. Franchising is a form of which of these? a. Direct investing b. Licensing c. Exporting d. Countertrade e. Barter trade

b. Licensing

69. Which of these is a method of management whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance? a. Organizational planning b. Management by objectives c. Goal setting d. Mission development e. Vision development

b. Management by objectives

126. Swift Move Facilities manufacturers two different bicycle models. The company produces a high volume of products using standardized production runs. The company does very little product customization. Swift Move uses what type of technology structure? a. Service production b. Mass production c. Large-batch production d. Small-batch production e. Continuous process production

b. Mass production

84. At which stage of the change process do managers evaluate problems and opportunities? a. Monitor forces for change b. Need for change c. Initiate change d. Implement change e. Internal forces

b. Need for change

85. _____ indicates a disparity between existing and desired performance levels. a. Environmental opportunity b. Need for change c. Behavioral occurrence d. Critical incident e. Organizational structural imbalance

b. Need for change

65. Which of the following organizations have a flat structure compared to others? a. Organization A with eleven hierarchical levels b. Organization B with three hierarchical levels c. Organization C with eight hierarchical levels d. Organization D with six hierarchical levels e. Organization E with seven hierarchical levels

b. Organization B with three hierarchical levels

49. Selecting goals and ways to attain them refers to . a. controlling b. planning c. organizing d. staffing e. leading

b. Planning

77. define boundaries within which to make a decision. a. Programs b. Policies c. Rules d. Procedures e. Projects

b. Policies

74. The legal-political environment, in international operations, includes which of the following? a. Shared knowledge, beliefs and values b. Political risks c. Social organizations d. Infrastructure e. None of these

b. Political risks

OTHER: F 43. _____ change is a change in the organization's product or service outputs. a. Technology b. Product c. Entrepreneurship d. Creative e. Incremental

b. Product

64. Which of the following means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance? a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Brainstorming

b. Risk

110. Which of the following refers to the willingness to undertake risk with the opportunity to increase one's return? a. Tunnel vision b. Risk propensity c. Risk averse d. Thrill seeking e. Ineffective investment philosophy

b. Risk propensity

88. Cyrus's Resort has proposed some major structural changes within their organization. Some of the employees fear that they will lose power with the changes. They begin voicing resistance to the changes. What barrier to change are they exhibiting? a. Disagreements about the benefits b. Self interests c. A lack of understanding and trust d. Uncertainty e. Goals and rewards

b. Self interests

59. departments include all of those that provide specialized skills in support of departments. a. Line; staff b. Staff; line c. Primary; functional d. Functional; primary e. Line; functional

b. Staff; line

90. are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence. a. Operational goals b. Stretch goals c. Strategic goals d. Tactical goals e. Bottom-up goals

b. Stretch goals

55. Which of the following characteristics distinguishes authority? a. It is vested in people, not positions. b. Subordinates accept it. c. It flows across the horizontal hierarchy. d. It emerges from the organizational values. e. Individuals are born with this power.

b. Subordinates accept it.

78. Which of the following is an OD intervention technique in which questionnaires on organizational climate and other factors are distributed among employees and the results reported back to them by a change agent? a. Team building activities b. Survey feedback activities c. Intergroup activities d. Process-consolidation activities e. Symbiotic leadership activities

b. Survey feedback activities

68. matches with the preconventional level of personal moral development. a. Work group collaboration b. Task accomplishment c. Empowered employees d. Full participation e. Transforming

b. Task accomplishment

63. Which of these refers to procedural justice? a. The concept that different treatment of people should not be based on arbitrary characteristics. b. The concept that rules should be clearly stated and consistently and impartially enforced. c. The concept that individuals should be compensated for the cost of their injuries by the party responsible. d. The concept that people should be treated differently. e. None of these

b. The concept that rules should be clearly stated and consistently and impartially enforced.

67. Which of the following has the highest possibility of failure? a. The condition of certainty b. The condition of ambiguity c. The condition of uncertainty d. The condition of risk e. All of these

b. The condition of ambiguity

76. Which of these assumptions are included in the classical model of decision making? a. Problems are unstructured and ill defined. b. The decision-maker strives for conditions of certainty. c. Criteria for evaluating alternatives are unknown. d. The decision-maker selects the alternatives that will minimize the economic return to the organization. e. The situation is always uncertain.

b. The decision-maker strives for conditions of certainty.

47. The planning process begins with which of these? a. The development of operational goals b. The development of a mission statement c. Communication of goals to the rest of the organization d. A company-wide meeting e. Brainstorming

b. The development of a mission statement

71. Exchange rates are included in which of the following international environments? a. The legal-political sector b. The economic environment c. The sociocultural environment d. The barter system environment e. The government sector

b. The economic environment

58. Which of the following is NOT one of the moral rights that could be considered during decision-making? a. The right to free consent. b. The right to invade privacy. c. The right to free speech. d. The right of freedom of conscience. e. The right to life and safety.

b. The right to invade privacy.

61. Which of the following refers to the number of employees reporting to a supervisor? a. The line of authority b. The span of management c. The chain of command d. The management chain e. Delegation

b. The span of management

92. Beth's Barnyard, Inc. has decided to restructure the entire organization. You hold a meeting with your employees to notify them of the change. You do not give them any detailed information. Which of the barriers to change would you expect your employees to exhibit? a. Disagreements about the benefits b. Uncertainty about the future c. A lack of trust d. Fear of organizational loss e. All of these

b. Uncertainty about the future

88. refers to a value characterized by people's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity. a. Power distance b. Uncertainty avoidance c. Certainty avoidance d. Conformity seekers e. None of these

b. Uncertainty avoidance

95. Which of the following structures is the leanest of all organization forms because little supervision is required? a. Functional approach b. Virtual network approach c. Team approach d. Matrix approach e. Divisional approach

b. Virtual network approach

107. Which of the following has a goal to guide the nations of the world toward free trade and open markets? a. GATT b. WTO c. GLOBE d. EU e. NAFTA

b. WTO world trade organization

95. When an official is given the responsibility of overseeing all aspects of ethics and legal compliance. S/he is referred to as: a. a whistle-blower. b. a chief ethics officer. c. vice-president of human resource management. d. a yes-man. e. a political play.

b. a chief ethics officer.

153. Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified as: a. a dog. b. a star. c. a question mark. d. a cash cow. e. stuck in the middle.

b. a star.

96. Shooting Star, Inc. has slow response to external changes, centralized decision making, and poor coordination across departments. It is likely structured: a. along divisional lines. b. along functional lines. c. based on the team approach. d. based on the virtual network approach. e. none of these.

b. along functional lines.

107. For a programmed decision: a. alternatives are usually difficult to identify. b. alternatives are usually easy to identify. c. there are usually few alternatives. d. there are usually few alternatives and they are difficult to identify. e. there are no alternatives.

b. alternatives are usually easy to identify.

49. Creative organizations: a. are characterized by an unusually high number of routine jobs. b. are loosely structured. c. have little ambiguity. d. have too many layers of management. e. use a centralized decision making approach.

b. are loosely structured.

75. Standing plans: a. are developed to achieve a set of goals that are unlikely to be repeated in the future. b. are used to provide guidance for tasks performed repeatedly within the organization. c. define company responses to specific situations, such as emergencies or setbacks. d. are the most important in the organizations. e. are none of these.

b. are used to provide guidance for tasks performed repeatedly within the organization.

85. The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions is known as: a. satisficing. b. bounded rationality. c. classical model of decision making. d. normative approach. e. scientific approach.

b. bounded rationality.

91. All of the following are characteristics of the administrative decision making model except: a. vague problem and goals. b. conditions of certainty. c. limited information about alternatives and their outcomes. d. satisfying choice. e. all of these are characteristics of administrative decision making model.

b. conditions of certainty.

52. The innovation strategy for changing products and technologies that involves creating conditions and systems to facilitate internal and external coordination and knowledge sharing is known as . a. exploration b. cooperation c. entrepreneurship d. idea incubator e. horizontal linkage

b. cooperation

40. The generation of novel ideas that may meet perceived needs or respond to opportunities for the organization is called . a. a search initiative b. creativity c. an ideal champion d. a great idea e. strategic analysis

b. creativity

81. A nation's includes the shared knowledge, beliefs and values, as well as the common modes of behavior and ways of thinking, among members of a society. a. power distance b. culture c. masculinity d. individualism e. uncertainty avoidance

b. culture

Scenario - Larry Campbell The pressure was on again. Larry Campbell, the Vice President at ToolTime Hardware, Inc., was receiving requests from men and women inside the firm and outside the firm, asking him to review the company's promotion policies. Of the 52 middle and high level executives, only three were women. The pressure was to review the policies that had led to this perceived imbalance and, if appropriate, take the steps necessary for correction. 98. Using the justice approach for ethical decision-making, the logic of promoting qualified men and women would be supported by: a. equal rights justice. b. distributive justice. c. procedural justice. d. compensatory justice. e. all of these.

b. distributive justice

102. Stephanie works in one of seven research and development departments at Tara's Terrace, Inc. This would suggest that Tara's Terrace has a: a. functional structure. b. divisional structure. c. wide span of control. d. high degree of centralization. e. matrix structure.

b. divisional structure.

73. The functional, , and are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy. a. divisional, teams b. divisional, matrix c. matrix, teams d. matrix, networks e. teams, networks

b. divisional, matrix

47. Louise works in the manufacturing department at Ice Sculptures. The work in Louise's department is low in task specialization. As a result, Louise: a. usually performs a single task. b. does a variety of tasks and activities. c. is often bored. d. is rarely challenged. e. generally goofs-off.

b. does a variety of tasks and activities.

46. The decision by ABC International to downsize and reduce its labor force is in the: a. domain of codified law. b. domain of free choice. c. domain of ethics. d. social responsibility. e. none of these.

b. domain of free

44. An organization's decision to hire for an open position is in the: a. domain of codified law. b. domain of free choice. c. domain of ethics. d. domain of compensatory justice. e. domain of social responsibility.

b. domain of free choice.

93. All of the following are advantages of a functional structure EXCEPT: a. economies of scale. b. excellent coordination between functions. c. in-depth skill specialization and development. d. high quality technical problem solving. e. career progress within functional departments.

b. excellent coordination between functions.

43. Organization structure is defined as the: a. visual representation of the organization. b. framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated. c. division of labor. d. unbroken line of authority that links all individuals in the organization. e. none of these.

b. framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated.

77. Being a successful manager means thinking in terms of all of the following, except: a. building teams. b. generating the most profit. c. becoming a motivator. d. becoming an organizer. e. establishing networks.

b. generating the most profit.

81. One major limitation of goals and plans is: a. goals and plans guide resource allocation. b. goals and plans may cause rigidity in a turbulent environment. c. goals and plans decrease employee motivation. d. goals and plans decrease employee commitment. e. none of the above.

b. goals and plans may cause rigidity in a turbulent environment.

53. Shared development of innovations among several departments is emphasized by the approach to innovation a. vertical b. horizontal linkage model c. top down d. bottom-up e. diagonal

b. horizontal linkage model

86. The final step to be managed in the change process is: a. freezing b. implementation c. intervention d. planning change e. envisioning change

b. implementation

55. When everyone is pursuing self-direction, the greater good is ultimately served because people learn to accommodate each other in their own long-term interest is an example of the . a. utilitarian approach b. individualism approach c. moral-justice approach d. justice approach e. social responsibility

b. individualism approach

85. A value that reflects a loosely knit social framework in which individuals are expected to take care of themselves is called: a. culture. b. individualism. c. ethnocentrism. d. masculinity. e. power distance.

b. individualism.

96. All of these are basic assumptions of the political model except: a. organizations are made up of groups with diverse interests, goals, and values. b. information is clear and complete. c. managers do not have the time, resources, or mental capacity to identify all dimensions of the problem. d. managers engage in the push and pull of debate to decide goals and discuss alternatives. e. all of these are basic assumptions of the political model.

b. information is clear and complete.

72. A country's physical facilities that support economic activities make up its . a. resource markets b. infrastructure c. physical markets d. product markets e. plants and equipment

b. infrastructure

102. The recognition of the decision requirement step in the managerial decision making process requires managers to: a. develop alternative solutions. b. integrate information in novel ways. c. use the classical model of decision making. d. focus on generating ideas. e. select undesirable alternatives.

b. integrate information in novel ways.

62. The management of business operations conducted in more than one country is called: a. global management. b. international management. c. outsourcing management. d. planning management. e. domestic management.

b. international management.

86. Jana has a high tolerance for the unstructured, the unclear, and the unpredictable. She can best be described as having: a. high uncertainty avoidance. b. low uncertainty avoidance. c. high degree of individualism. d. low degree of individualism. e. low level of power distance.

b. low uncertainty avoidance.

91. In the approach, a manufacturing company uses outside suppliers to provide entire chunks of a product, which are then assembled into a final product by a handful of workers. a. virtual network b. modular c. virtual organization d. team e. matrix

b. modular

58. Two area banks, Bank A and Bank B, decided to merge their operations. This is an example of a: a. programmed decision. b. nonprogrammed decision. c. decision rule. d. structured decision. e. bad community decision.

b. nonprogrammed decision.

64. Managers use to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively. a. strategic goals b. operational goals c. growth goals d. financial results e. internal business process goals

b. operational goals

52. How an organization goes about accomplishing a plan is a key part of the management function of . a. planning b. organizing c. leading d. controlling e. motivating

b. organizing

100. The _____ approach to change implementation should be used when users have power to resist. a. education b. participation c. coercion d. top management support e. domination

b. participation

43. A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a(n) _____. a. goal b. plan c. mission d. vision e. objective

b. plan

76. A company's risk of loss of assets, earning power, or managerial control due to politically based events or action by host government is referred to as: a. MFN. b. political risk. c. tariffs. d. political instability. e. terrorism.

b. political risk.

97. The relationship between social responsibility and financial performance has been shown to be . a. non-existent b. positive c. negative d. not important e. a reflection of top leadership

b. positive

159. Gillette operates numerous strategic business units. Most of its units in the personal care division have low market share but high business growth. These units are classified as . a. dogs b. question marks c. stars d. cash cows e. none of these

b. question marks

69. Your grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a problem with India's: a. product market. b. resource market. c. infrastructure. d. economy. e. power distance.

b. resource market.

79. "No food and/or drinks in the classroom" is an example of a . a. procedure b. rule c. policy d. single-use plan e. project

b. rule

1. Most managers settle for a rather than a solution. a. minimizing; maximizing b. satisfying; maximizing c. top-level; bottomline d. maximizing; satisficing e. challenging; simple

b. satisfying; maximizing

146. Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred will: a. conduct an external wage survey. b. search for the strengths, weaknesses, opportunities, and threats that impact his firm. c. choose a grand strategy for his firm. d. do a cost/benefit analysis. e. develop a mission.

b. search for the strengths, weaknesses, opportunities, and threats that impact his firm.

60. Sarah is a middle manager at Stylin' Sneakers Corporation. She is most likely responsible for the achievement of goals. a. operational b. tactical c. strategic d. lower-level e. top-level

b. tactical

61. Goals that define the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals is called: a. strategic goals. b. tactical goals. c. operational goals. d. a mission. e. a plan.

b. tactical goals.

45. A _____ change is related to the organization production process. a. new product b. technological c. structural d. culture/people e. competitive

b. technological

113. Typically, project managers have authority over but not over assigned to it. a. people; the project b. the project; people c. resources; the project d. people; other resources e. finances; products

b. the project; people

71. Frostburg Fireplaces has used MBO for the past year. Top management just finished evaluating overall performance. The next step in the MBO process should be: a. to develop new action plans. b. to develop new objectives based on the review of last year's performance. c. to begin a new MBO "cycle", using the same objectives as last year. d. to wait several months to allow information to be digested. e. none of these.

b. to develop new objectives based on the review of last year's performance.

50. A normative approach to ethical decision making: a. reduces ethical dilemmas to easy-to-understand formulas. b. uses various approaches to describe guiding values for decisions. c. states that everyone must use their employer's value system at work. d. dictates only one way to choose to resolve dilemmas. e. none of these.

b. uses various approaches to describe guiding values for decisions.

123. A(n) works best in a stable organizational environment. a. loose organizational structure b. vertical structure c. organic structure d. horizontal structure e. loose organizational structure or an organic structure

b. vertical structure

56. Anyone considering doing business in China, according to Spotlight on Skills in Chapter 2, should keep in mind all of the following rules except . a. business is always personal b. don't skip the small talk c. remember that relationships are not short-term d. be efficient with use of time e. make contact frequently

be efficient with use of time

71. Roberta is a top-level executive at a banking institution. She spends a significant part of her day meeting with local government officials, every day consumers, and federal banking officials to address key issues in the banking industry. Roberta's role can best be described as . a. boundary-spanning b. adaptive c. interorganizational d. external e. internal

boundary-spanning

144. The recognition that people have limits on how rational they can be is known as .

bounded rationality

77. Theresa works in an organization where coordination across organizational units is poor and the units perceived themselves to be in competition with one another for organizational resources. These characteristics are consistent with which of the following structures? a. A matrix structure b. A functional structure c. A divisional structure d. A team-based structure e. A virtual network structure

c. A divisional structure

58. Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system to entrepreneurs. What type of strategy are you going to use? a. Wholly owned foreign affiliate b. A greenfield venture agreement c. A franchise d. An export agreement e. Barter trade

c. A franchise

122. Which of the following structures works best in an uncertain organizational environment? a. A tight structure b. A mechanistic structure c. A horizontal structure d. A functional structure e. A vertical structure

c. A horizontal structure

90. After every quarterly board meeting, Bernice's Bracelets, Inc. announces big changes. They usually do not follow through on these changes. What is causing this lack of enthusiasm? a. Disagreements about the benefits b. Self interests c. A lack of trust d. Goals and assessments e. Competitors

c. A lack of trust

77. Which of the following is a characteristic of the large-group intervention model? a. Results in incremental change b. Learning for the small group c. Addresses the entire system d. Gradual time frame e. Limited distribution

c. Addresses the entire system

58. Which of the following is a person who sees the need for and fights for productive change in an organization? a. A creative individual b. A catalyst c. An idea champion d. A sponsor e. A critic

c. An idea champion

92. What can Katelynn expect to be doing during the final step of the MBO process? a. Setting goals b. Reviewing progress c. Appraising overall performance d. Defining mission e. Developing action plans

c. Appraising overall performance

108. Boars' Nest Distributors is continually hampered by an inability to adapt to an unstable environment. Which of the following is a plausible explanation as to why? a. Boars' Nest's structure is too loose. b. Boars' Nest's structure is too horizontal. c. Boars' Nest uses a vertical structure. d. All of these. e. Both Boars' Nest's structure is too loose and structure is too horizontal.

c. Boars' Nest uses a vertical structure.

45. is a concept that proposes that corporations can alleviate poverty and other social ills by selling to the world's poorest people. a. Cream of the crop b. Skimming the barrel c. Bottom of the pyramid d. Top of the peak e. Base hierarchy

c. Bottom of the pyramid

87. Collectivist values are represented in the social framework of which of these? a. The United States b. Australia c. Brazil d. Great Britain e. All of these

c. Brazil

152. The BCG matrix organizes along which of the following dimensions? a. Market share and profit b. Sales and market share c. Business growth rate and market share d. Business growth rate and profit e. Sales and profits

c. Business growth rate and market share

69. means that decision authority is located near the of the organization. a. Centralization; bottom b. Decentralization; top c. Centralization; top d. Centralization; middle e. None of these

c. Centralization; top

105. For the past several years, foreign companies have invested more in business in than in any other place in the world. a. Brazil b. India c. China d. United States e. Russia

c. China

54. As a first step into international business, which two countries are most companies going to today? a. Russia and Japan b. Sweden and Germany c. China and India d. Brazil and Philippines e. Indonesia and Brazil

c. China and India

104. Which approach to change implementation should be used when a crisis exists? a. Education b. Participation c. Coercion d. Top management support e. None of these

c. Coercion

58. is the management function concerned with monitoring employees' activities, keeping the organization on track toward its goals, and making corrections as needed. a. Planning b. Resource allocation c. Controlling d. Organizing e. Efficiency

c. Controlling

66. Darren set goals for each of his employees. Each employee ended up with at least twenty-five goals. This process violates which of the following criteria for effective goals? a. Specific and measurable b. Challenging but realistic c. Covers key result areas d. Defined time period e. Linked to rewards

c. Covers key result areas

41. Which of the following refers to the generation of novel solutions to perceived problems? a. Problem solving b. Organizational development c. Creativity d. Brainstorming e. Perceived solution

c. Creativity

49. refers to the process of identifying problems and then resolving them. a. Organizing b. Controlling c. Decision-making d. Planning e. Leading

c. Decision-making

97. For Southwest Airlines, all of the following can be suppliers except: a. Exxon (providing jet fuel). b. Citibank (providing finances). c. Delta Airlines (providing competition). d. Boeing (providing planes). e. All of these are suppliers for Southwest Airlines.

c. Delta Airlines (providing competition).

104. When managers ask questions such as "What is the state of disequilibrium affecting us?", they are in which stage of the managerial decision-making process? a. Selection of a desired alternative b. Development of alternatives c. Diagnosis and analysis of causes d. Recognition of decision requirement e. Evaluation and feedback

c. Diagnosis and analysis of causes

105. When quality control measures at the local tire plant were found to be inadequate, managers were asking themselves, "How did this occur?" and "What is the result?" The company is in which stage of the managerial decision-making process? a. Selection of a desired alternative b. Development of alternatives c. Diagnosis and analysis of causes d. Recognition of decision requirement e. Evaluation and feedback

c. Diagnosis and analysis of causes

61. The Write Pens, Inc. wants to reduce transferring costs by producing closer to the consumer in a foreign country. This will also help in reducing transportation and storage costs. Which strategy would be the best to use given the circumstances? a. Franchising b. Exporting c. Direct investing d. Barter agreement e. Licensing

c. Direct investing

113. Which style is used by people who prefer simple, clear-cut solutions to problems? a. Behavioral b. Conceptual c. Directive d. Analytical e. Classical

c. Directive

73. _____ is NOT a type of current problem that organizational development can help address. a. Mergers b. Acquisitions c. Diversification d. Organizational decline e. Conflict management

c. Diversification

93. includes behavior that is not always codified into law and may actually not serve an organization's economic interests. a. Legal responsibility b. Economic responsibility c. Ethical responsibility d. Discretionary responsibility e. None of these

c. Ethical responsibility

82. Which of the following companies place an emphasis on their home countries? a. Polycentric b. Geocentric c. Ethnocentric d. Global e. Regiocentric

c. Ethnocentric

112. Genna is collecting data on how well the organization has done since their new strategy was implemented. She is in what stage of the managerial decision making process? a. The generation of alternatives b. Implementation of the chosen alternative c. Evaluation and feedback d. Recognition of the decision requirement e. Selection of desired alternative

c. Evaluation and feedback

51. Which of the following is an entry strategy in which the organization maintains its production facilities within its home country and transfers its products for sale in foreign markets? a. Franchising b. Licensing c. Exporting d. Greenfield venture e. Joint venture

c. Exporting

42. refers to a desired future state that an organization attempts to realize. a. Plan b. Vision statement c. Goal d. Mission statement e. Idea

c. Goal

128. refers to the fact that services are perishable and cannot be stored in inventory. a. Boundarylessness b. Tangible output c. Intangible output d. Flexible operations e. Centralization

c. Intangible output

86. Which of the following is NOT involved in the stages of crisis planning? a. Setting up effective communication systems b. Creating detailed crisis management plans c. Investigating all stakeholders d. Designating a crisis management team and spokesperson e. Building relationships

c. Investigating all stakeholders

64. Dustin's subordinates are highly trained and all perform similar tasks. Brittany's subordinates are spread over two locations and she has little available in the way of support systems. Which of the following statements is most correct? a. Nichole's span of management can be larger than Kevin's. b. Nichole will have problems with unity of command. c. Kevin's span of management can be larger than Nichole's. d. Kevin has more problems with work specialization. e. None of these

c. Kevin's span of management can be larger than Nichole's.

70. generally are located in Asia, Africa and South America. a. MNCs b. EUs c. LDCs d. WTOs e. MFNs

c. LDCs The least developed countries (LDCs) are a group of countries that have been classified by the UN as "least developed" in terms of their low gross national income (GNI), their weak human assets and their high degree of economic vulnerability.

105. Which of the following happens as organizations grow? a. Positions and departments are deleted. b. Management layers are eliminated to save cost. c. Managers have to find ways to tie different departments. d. Top management becomes more autocratic. e. None of these.

c. Managers have to find ways to tie different departments.

57. Which of the following typically is NOT considered a staff department? a. Strategic planning b. Accounting c. Manufacturing d. Human resources e. Research and development

c. Manufacturing

109. Which organization originated and supports the idea of small businesses operating on a global level? a. GLOBE b. EU c. NAFTA d. ASEAN e. GATT

c. NAFTA

78. is the approach that defines how a decision maker should make decisions and provides guidelines for reaching an ideal outcome for the organization. a. Administrative b. Descriptive c. Normative d. Bounded rationality e. None of these

c. Normative

71. Which of the following is defined by the text as the application of behavioral science knowledge to improve an organization's health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase problem-solving capabilities? a. Conflict management b. Organizational revitalization c. Organizational development d. Organizational linkage e. Horizontal linkage

c. Organizational development

41. Which of the following refers to the deployment of organizational resources to achieve strategic goals? a. Planning b. Controlling c. Organizing d. Leading e. Strategic management

c. Organizing

68. _____ refers to a change in the attitudes and behaviors of a few employees in the organization. a. Organization change b. Organization development c. People change d. Culture change e. Artifact change

c. People change

45. is the act of determining the organization's goals and the means for achieving them. a. Brainstorming b. Organizing c. Planning d. Developing a mission e. A blueprint

c. Planning

70. Which of the following stages is the stage of personal moral development in which an individual develops an internal set of standards and values? a. Preconventional b. Conventional c. Principled d. Discretionary e. Social

c. Principled

129. If Vaughn uses the administrative model of decision making, which of these assumptions would he reject? a. Decision-makers settle for a satisficing rather than maximizing solution. b. The search for alternatives is limited because of information, human and resource constraints. c. Rational procedures will normally lead to the best solution in a complex organization. d. Decision objectives are often vague, conflicting, and lack consensus among managers. e. All of these are accepted.

c. Rational procedures will normally lead to the best solution in a complex organization.

100. Which of the following is the first step in the managerial decision making process? a. Evaluation and feedback b. Development of alternatives c. Recognition of decision requirement d. Diagnosis and analysis of causes e. Selection of desired alternatives

c. Recognition of decision requirement

97. Shirley works in the human resource department at Turtle Shells, Inc. She believes she is seeing an increase in drinking problems among the workforce. She thinks she needs to investigate further. She is at what stage of the managerial decision making process? a. Diagnosis and analysis of causes b. Development of alternatives c. Recognition of decision requirement d. Evaluation and feedback e. Selection of desired alternatives

c. Recognition of decision requirement

53. Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he or she has authority and responsibility for a distinct set of tasks. Employees are also aware of the company's reporting structure as well as successive management levels all the way to the top. Rebecca's company follows which principle? a. Specialization principle b. Unity of command principle c. Scalar principle d. Authority principle e. Responsibility principle

c. Scalar principle

151. Where does the information about opportunities and threats comes from? a. An analysis of the organization's internal environment b. A department by department study of the organization c. Scanning the external environments d. Employee grievances e. Financial ratios of the organization

c. Scanning the external environments

145. refers to the use of managerial tools to direct resources toward the achievement of strategic goals. a. Strategy formulation b. Strategy coordination c. Strategy execution d. Strategy control e. Strategy planning

c. Strategy execution

66. Which of the following factors is NOT associated with larger span of control? a. Work performed by subordinates is stable and routine. b. Subordinates perform similar work tasks. c. Subordinates are located at various different locations. d. Subordinates are highly trained and need little direction. e. Rules and procedures defining task activities are available.

c. Subordinates are located at various different locations.

84. is economic development that generates wealth and meets the needs of their current generation while focusing on future generations. a. Ethical management b. Activist strategy c. Sustainability d. Market strategy e. Future management

c. Sustainability

46. Which type of plan helps managers implement the overall strategic plan? a. Operational b. Contingency c. Tactical d. Crisis e. Corporate-level

c. Tactical

90. Which of the following countries possesses a high performance orientation? a. Israel b. Sweden c. Taiwan d. Russia e. Venezuela

c. Taiwan

75. High-Low Productions recently appointed 75 employees and external stakeholders to a temporary group that would discuss problems and opportunities, and would gather perspectives on changes that need to take place within the company. High-Low Productions is utilizing which organizational change tool? a. Organizational development b. Skunkwork c. Telecommuting d. Focus group e. Large-group intervention

c. Telecommuting

93. What is force field analysis? a. The analysis of the forces that drive customers to a certain organization b. The analysis of the forces that drive the organization of a company c. The process of determining which forces drive and which resist a proposed change d. The process by which an organization forces changes to occur e. none of these

c. The process of determining which forces drive and which resist a proposed change

61. Which of the following is(are) important role(s) to be played during the process of organizational change? a. The idea champion b. The critic c. The sponsor d. Inventor e. All of these

c. The sponsor

82. Which of these are true about contingency plans? a. They are developed to achieve a set of goals that are unlikely to be repeated in the future. b. They are used to provide guidance for tasks performed repeatedly within the organization. c. They define company responses to specific situations, such as emergencies or setbacks. d. They are most important in the organizations. e. None of these

c. They define company responses to specific situations, such as emergencies or setbacks.

65. means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete. a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Advocacy

c. Uncertainty

51. Which approach is the ethical concept that moral behaviors produce the greatest good for the greatest number? a. Defensive b. Justice c. Utilitarian d. Individualism e. Moral-rights

c. Utilitarian

69. Which of these employee behaviors matches with the conventional level of personal moral development? a. Task accomplishment b. Empowered employees c. Work group collaboration d. Full participation e. Act in own interest

c. Work group collaboration

45. Which of the following refers to the degree to which organizational tasks are subdivided into individual jobs? a. Multitasking b. Lines of authority c. Work specialization d. Autonomy e. Team structure

c. Work specialization

79. Any group within or outside the organization that has a stake in the organization's performance is called: a. a supplier. b. an international customer. c. a stakeholder. d. OPEC. e. a trade association.

c. a stakeholder.

84. The model of decision making describes how managers actually makes decisions in situations characterized by nonprogrammed decisions, uncertainty, and ambiguity. a. normative b. classical c. administrative d. scientific management e. objective

c. administrative

48. A situation that arises when all alternative choices or behaviors have been deemed undesirable because of the potentially negative ethical consequences, making it difficult to distinguish right from wrong, is considered: a. a moral agent. b. a social responsibility. c. an ethical dilemma. d. an ethical standard. e. discretionary responsibility.

c. an ethical dilemma.

51. The formal and legitimate right of a manager to make decisions is . a. delegation b. responsibility c. authority d. span of management e. leadership

c. authority

60. Associated with the condition of is the lowest possibility of failure. a. ambiguity b. uncertainty c. certainty d. risk e. threats

c. certainty

80. The model of decision making is most valuable when applied to . a. administrative; programmed decisions b. classical; nonprogrammed decisions c. classical; programmed decisions d. classical; ambiguous decisions e. administrative; structured decisions

c. classical; programmed decisions

114. Personal style refers to differences among people with respect to how they perceives problems and make decisions. a. risk taking b. behavior c. decision d. strategic e. analysis

c. decision

56. Gina wishes to transfer authority and responsibility to her subordinates. This process is known as: a. accountability. b. coordination. c. delegation. d. departmentalization. e. passing the buck

c. delegation.

Scenario - Katelynn Kareem Managers at WXYZ just announced that the new management program would be focused around MBO concepts. Katelynn Kareem had been a manager at WXYZ for ten years and she was not certain if this new MBO approach was going to fit her department. She had strong commitment to achieving the company's objectives, but she also knew her employees well enough to know that some didn't share the same commitment. 91. In the MBO process, after the first step of setting objectives is accomplished, the next step that Katelynn should expect is: a. reviewing progress toward company goals. b. appraising overall performance. c. developing action plans. d. having a company party to celebrate. e. none of these.

c. developing action plans.

124. The is the individual who is assigned the role of challenging assumptions made by the group. a. group gadfly b. multiple advocate c. devil's advocate d. brainstormer e. inferior member

c. devil's advocate

74. When departments are grouped together on the basis of organizational outputs, the organization is using a: a. functional structure. b. matrix structure. c. divisional structure. d. virtual network structure. e. team-based structure.

c. divisional structure.

74. The classical model of decision making is based on assumptions. a. philosophical b. irrational c. economic d. uncertainty e. technological

c. economic

54. The horizontal linkage model is best applied to a(n): a. low pressure environment. b. stable environment. c. environment that requires speed. d. customer service environment. e. manufacturing environment.

c. environment that requires speed.

84. Organizations whose social values reflect low power distance: a. are highly autocratic. b. expect superios to make all the decisions. c. expect equality in power. d. avoid uncertainty. e. none of these.

c. expect equality in power.

149. Paramount, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as a(n) . a. external opportunity b. internal strength c. external threat d. external weakness e. congressional chaos

c. external threat

121. The pure functional structure does not enable the organization to be: a. a cost leader. b. efficient. c. flexible. d. stable. e. all of these.

c. flexible

164. With a(n) strategy, the organization concentrates on a specific regional market or buyer group. a. cost leadership b. differentiation c. focus d. internal growth e. liquidation

c. focus

97. Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and decisions are backing up at the top of the organization. Organ Rentals uses a structure. a. geographic b. product c. functional d. matrix e. team-based

c. functional

79. Global companies often use a structure to achieve simultaneous coordination of products across countries. a. functional b. divisional c. matrix d. product-based e. process-based

c. matrix

54. "We seek to become the premier business school in the west" is an example of a statement you are most likely to find in the organization's . a. tactical goals b. operational goals c. mission d. tactical plans e. operational plans

c. mission

62. The organization's reason for existence is known as the organization's . a. value b. vision c. mission d. goal e. service

c. mission

56. Human beings have fundamental rights and liberties that cannot be taken away by another individual's decision. This ethical decision making approach is known as the: a. utilitarian approach. b. individualism approach. c. moral-rights approach. d. dualism approach. e. none of these.

c. moral-rights approach.

110. Carrie's Car Care receives more than 25% of its total sales revenues from operations outside of the United States. Carrie's would be considered a: a. foreign national. b. wealth company. c. multinational corporation. d. globalization corporation. e. None of these.

c. multinational corporation.

67. A fund providing resources from which individuals and groups draw to develop new ideas, products, or businesses is referred to as a _____. a. personal fund b. development fund c. new-venture fund d. change fund e. mutual fund

c. new-venture fund

65. The _____ is a unit separate from the rest of the organization responsible for the development of a major innovation. a. new product group b. matrix group c. new-venture team d. vertical group e. change team

c. new-venture team

57. When a small community hospital decides to add a radiation therapy unit, it is considered a: a. programmed decision. b. structured decision. c. nonprogrammed decision. d. poor management decision. e. certainty decision.

c. nonprogrammed decision.

50. The Maquiladora industry along the Texas-Mexico border on the Mexico side uses cheap labor for assembling products. This lowers the price for U.S. consumers and is an example of: a. licensing. b. joint venture. c. outsourcing. d. franchising. e. none of these.

c. outsourcing.

urgen is one of several middle managers sent to a training course on leadership skills. Through this effort, the organization is attempting: a. organization change b. organization development c. people change d. culture change e. artifact change

c. people change

78. An example of a is a statement supporting the organization's efforts in the area of sexual harassment. a. procedure b. rule c. policy d. single-use plan e. program

c. policy

79. A foreign terrorist kidnaps your firm's marketing VP while the VP is in the host country. This is a harsh example of: a. economic development. b. infrastructure. c. political risk. d. international law. e. social risk.

c. political risk.

74. When the USS Indianapolis sank after being torpedoed, one Navy pilot disobeyed orders and risked is life to save men who were being picked off by land sharks. The Navy pilot was operating from the level of moral development. a. preconventional b. conventional c. postconventional d. lowest e. conservative

c. postconventional

85. The two stages of crisis planning include: a. prevention and control. b. planning and leading. c. prevention and preparation. d. preparation and control. e. leading and organizing.

c. prevention and preparation.

108. Ryan is a manager at Dream Catchers. Dream Catchers is currently operating in an environment of high uncertainty. As a result, Ryan will: a. most likely be making programmed decisions. b. probably have an easy time generating alternatives. c. probably have a difficult time generating alternatives. d. most likely rely on the classical model of decision making. e. wait until environment becomes certain.

c. probably have a difficult time generating alternatives.

(n) is responsible for coordinating the activities of several departments. a. department manager b. line manager c. project manager d. operative e. moderating manager

c. project manager

63. Under conditions of , statistical analyses are useful. a. certainty b. ambiguity c. risk d. uncertainty e. conflict

c. risk

120. All of the following are cognitive biases that can affect manager's judgment except: a. being influenced by initial impressions. b. justifying past decisions. c. seeing what you don't want to see. d. perpetuating the status quo. e. overconfidence.

c. seeing what you don't want to see.

109. Once the desired alternative is developed, it should be . a. analyzed b. evaluated c. selected d. recognized e. identified

c. selected

157. The question mark has a: a. large market share in a rapidly growing industry. b. large market share in a slow growth industry. c. small market share in a rapidly growing industry. d. small share of a slow growth market. e. moderate market share in a slow growth industry.

c. small market share in a rapidly growing industry

Scenario - SS.com Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates. 168. Swift Stock's traditional brokerage business could be classified as a . a. cash cow b. dog c. star d. question mark e. stuck in the middle business

c. star

Nikki Williams was working as the sales manager for Industrial Instruments. Some of the sales executives were showing signs of burnout. They were losing interest in their jobs and were no longer motivated to gain new accounts. The reward system focused on old reliable accounts, but Nikki was now under pressure to expand the customer base. Nikki had recently been to a seminar on corporate value systems. She recognized that the company's CEO wanted to change the way employees thought about the firm and the way they related to one another. She further recognized that a lasting solution to her problem required a fundamental shift in perception. 109. Nikki could use the following to affect the corporate culture: a. structured symbolic logic. b. stories about political heroes. c. stories about company officers, stressing a value. d. stories about economic depression. e. all of these.

c. stories about company officers, stressing a value.

142. The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as: a. strategy formulation. b. strategic planning. c. strategic management. d. strategy implementation. e. strategy evaluation.

c. strategic management.

58. A long-term time frame is most closely associated with: a. operational plans. b. tactical plans. c. strategic plans. d. mission plans. e. tactical goals.

c. strategic plans.

87. Kyle is seeing, on a regular basis, a difference between current and expected performance levels. She should begin: a. to gather more data. b. to implement change. c. to perceive a need for change. d. to change the reward system. e. all of these.

c. to perceive a need for change.

109. In planning how to implement the new system, Jaimie can anticipate some resistance to the new system. This resistance can come from all of the following, EXCEPT : a. self interest of the resisting employees. b. lack of understanding of the new system. c. uncertainty, or a lack of information. d. different departments pursuing different goals. e. mission driven organizational policies.

c. uncertainty, or a lack of information.

83. Organizational development specialists identify three distinct steps for achieving behavioral and attitudinal changes. These are a. freezing, changing, and intervention. b. unfreezing, change agent, and freezing. c. unfreezing, changing, and refreezing. d. intervention, refreezing, and change agent. e. none of these.

c. unfreezing, changing, and refreezing.

96. If a company emphasizes that "no purchase is complete until the customer is satisfied," then it's: a. utilizing a symbol. b. communicating its values to customers. c. using a slogan to present their values to customers and employees. d. utilizing a hero for the purpose of conveying values. e. using customers to harass the employees.

c. using a slogan to present their values to customers and employees.

89. The is an organization structure that divides the major functions of the organization into separate companies and coordinates their activities from a small headquarters organization. a. diversification approach b. team approach c. virtual network approach d. BCG approach e. functional approach

c. virtual network approach

42. Strategy defines to do (it) while organizing defines to do (it). a. how; what b. how; why c. what; how d. what; why e. when; what

c. what; how

134. The is an unbroken line of authority that links all persons in an organization and shows who reports to whom.

chain of command

49. Unity of command and the scalar principle are both closely related to the: a. amount of work specialization in an organization. b. degree of formalization. c. chain of command. d. amount of bureaucracy in the organization. e. matrix structure.

chain of command.

99. All of the following are types of corporate cultures except: a. adaptability culture. b. clan culture. c. consistency culture. d. involvement culture. e. achievement culture.

clan culture.

101. When values and standards are written into the legal system, it is referred to as .

codified law

130. A preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests refers to .

collectivism

114. People learn to conform to the expectations of good behavior that are set by peers and society at the level.

conventional

116. Most managers operate at the level.

conventional second

126. A nation's includes the shared knowledge, beliefs, and values, as well as the common modes of behavior and ways of thinking, among members of a society.

culture

47. A recent poll found that percent of people surveyed say corporate America's moral compass is pointing in the wrong direction. a. 10 b. 29 c. 52 d. 76 e. 98

d. 76

124. Which of the following is an incorrect fit in a stable organizational environment? a. A tight structure b. A rigid structure c. A functional structure d. A horizontal structure e. A vertical structure

d. A horizontal structure

52. Which of these are described by mission statements? a. Corporate values b. Product quality c. Location of facilities d. All of these e. None of these

d. All of these

69. is by far the most difficult situation for a decision-maker. a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Brainstorming

d. Ambiguity

70. Which of the following means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable? a. Certainty b. Risk c. Uncertainty d. Ambiguity e. Brainstorming

d. Ambiguity

51. Which of the following provides a safe harbor where ideas from employees throughout the company can be developed without interference from company bureaucracy or politics? a. An idea champion b. A sponsor c. A new-venture team d. An idea incubator e. An inventor

d. An idea incubator

105. Sandbox Sally's, Inc. is making some changes to the work schedules of its employees. Some of the employees are not happy with the changes. As their manager, Harry tells them that they can accept it or leave. What approach to change implementation is Harry using? a. Negotiation b. Top management support c. Participation d. Coercion e. Education

d. Coercion

57. Tool Techies, Inc. uses phone surveys of customers to gather information about service and quality. This is an example of the management function of: a. planning. b. technical skills. c. organizing. d. controlling. e. conceptual skills

d. Controlling

84. enables firms to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response. a. Incident planning b. Contingency planning c. Strategic planning d. Crisis planning e. Emergency planning

d. Crisis planning

56. Cooltown University recently invited members of its social network group to enter a contest on YouTune o design the best video promoting the university. This is an example of what innovative approach? a. Social group innovation b. Network innovation c. Techsourcing d. Crowdsourcing e. Insourcing

d. Crowdsourcing

88. Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or accident. Which of the following should Jeff undertake to prepare for such a crisis? a. Building relationships with neighboring businesses b. Detecting signals from the natural environment c. Polling employees on the likelihood of an environmental disaster d. Designating a crisis management team in the event of an environmental disaster e. Dismantling the company's ties to the external media

d. Designating a crisis management team in the event of an environmental disaster

88. Which of the following responsibilities is purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics? a. Ethical b. Economic c. Legal d. Discretionary e. Stakeholder

d. Discretionary

38. _____ refers to innovations in products, services, or processes that radically change an industry's rules of the game for producers and consumers. a. Restructuring innovation b. Trickle up innovation c. Productive innovation d. Disruptive innovation e. Reverse innovation

d. Disruptive innovation

120. Which of the following structures is most consistent with a strategy of stability? a. Team based structure b. Organic structure c. Matrix structure d. Functional structure e. Learning structure

d. Functional structure

108. Executives at One World Advertising have learned that it is necessary to establish strong personal relationships and emotional bonds with Chinese business partners. This relates most closely to which dimension of the general business environment? a. Natural b. Sociocultural c. Legal/Political d. International e. Internal

d. International

108. Jaimie also recognizes that there are four roles in organizational change. Which of the following is NOT one of those roles? a. Inventor b. Champion c. Sponsor d. Investor e. All of these are included.

d. Investor

101. Which of the following is(are) an advantage of team structure? a. Increased barriers among departments b. Unplanned decentralization c. Time and resources spent on meetings d. Less response time, quicker decisions e. All of these

d. Less response time, quicker decisions

67. Focusing manager and employee efforts on activities that will lead to goal attainment is a benefit of what management method? a. Tactical planning b. Contingency planning c. Single-use planning d. Management by objectives e. Management by walking around

d. Management by objectives

102. _____ uses formal bargaining to win acceptance and approval of a desired change. a. Education b. Participation c. Coercion d. Negotiation e. Top management support

d. Negotiation

73. Which of the following is NOT one of the benefits of MBO? a. Performance can be improved at all company levels. b. Employees are motivated. c. Efforts are focused on activities that will lead to goal attainment. d. Operational goals are able to displace strategic goals. e. Individual and department goals are aligned with company goals.

d. Operational goals are able to displace strategic goals.

49. Which of the following refers to engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country? a. Franchising b. Licensing c. Market entry strategy d. Outsourcing e. Activity

d. Outsourcing

55. is the most widespread approach to international involvement in China and India. a. Importing b. Exporting c. Manufacturing d. Outsourcing e. Greenfield venture

d. Outsourcing

44. Of the strategic management functions, which is considered the most fundamental? a. Executing b. Analyzing c. Controlling d. Planning e. Leading

d. Planning

48. Robert, a top-level manager at an advertising agency, spends a significant part of his work day identifying goals for future organizational performance and deciding how to use resources to attain these goals. This involves which management function? a. Controlling b. Leading c. Organizing d. Planning e. Delegating

d. Planning

112. Lisa is responsible for coordinating the efforts of several different departments. Which of the following titles best describes her position? a. Department manager b. Middle manager c. First-level supervisor d. Project manager e. Chairman of the board

d. Project manager

105. Terry manages a food distribution company that is highly focused on creating a strong cohesive culture, but the company does not tie organizational values directly to goals and desired business results. Terry's company most likely falls in which quadrant of organizational performance and culture? a. Quadrant A b. Quadrant B c. Quadrant C d. Quadrant D e. Quadrant E

d. Quadrant D

62. "The Brain" is a permanent secret group within one of the nation's largest auto manufacturers. Members of this elite group focus intently on developing new and innovative automobile technologies. "The Brain" can best be described as what type of group or team? a. Cross-functional team b. Fast-cycle team c. Brainstorming team d. Skunkwork e. New-venture team

d. Skunkwork

82. What type of a stakeholder would a nature conservation group be for a paper manufacturing company? a. Supplier b. Competitor c. Employee d. Special interest group e. Stockholder

d. Special interest group

75. Riley is a manager at the Tinker Tools. She is expected to make decisions that are in the organization's best economic interests. Her decisions should be based on which of the following models? a. The administrative model of decision making b. The garbage can model of decision making c. The scientific management model of decision making d. The classical model of decision making e. The humanistic model of decision making

d. The classical model of decision making

76. Which of these best illustrates the preconventional stage of moral development? a. Everybody else is doing it, so it must be okay. b. What would my boss think if I did this? c. I know this is not right, and I will not do it, even if everyone else is. d. What am I going to get from making this decision? e. All of these.

d. What am I going to get from making this decision?

73. During the fallout of the global financial crisis of the late 2000s, finance companies had to make important decisions in a highly ambiguous environment. The decision to buyout failed banks could best be described as what type of decision? a. Bounded b. Programmed c. Conventional d. Wicked decision problem e. Irrational decision

d. Wicked decision problem

54. The people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. This is called . a. delegation b. line authority c. staff authority d. accountability e. hierarchy

d. accountability

116. Managers are considered to have a(n) style when they prefer to consider complex solutions based on as much data as they can gather. a. behavioral b. conceptual c. directive d. analytical e. classical

d. analytical

115. Research has identified four major decision styles. These include all of the following except . a. behavioral b. conceptual c. analytical d. authoritative e. directive

d. authoritative

48. Jacob was recently looking at his company's organization chart in an attempt to discover who reports to whom. Jacob is studying his organization's: a. degree of formalization. b. amount of differentiation. c. degree of centralization. d. chain of command. e. division of labor.

d. chain of command.

81. All of the following are examples of special interest groups except: a. professional associations. b. trade associations. c. political action committees. d. courts. e. consumerists.

d. courts.

112. The degree of international involvement for the joint venture is an example of: a. outscoring. b. exporting. c. licensing. d. direct investing. e. greenfield venture.

d. direct investing.

91. A code of is a formal statement of the company's values concerning ethics and social issues. a. integrity b. trust c. citizenship d. ethics e. honesty

d. ethics

111. The step in the decision making process involves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action. a. recognition b. analysis c. evaluation d. implementation e. feedback

d. implementation

148. Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the competition. The creativity of these employees would be classified as a(n) . a. internal weakness b. external opportunity c. external strength d. internal strength e. neutral factor

d. internal strength

96. Inventory managers at SYX Enterprises utilize an inventory control system where materials are scheduled to arrive just as they are needed on the production line. This is referred to as: a. restructuring. b. force-field control. c. total quality management. d. just-in-time inventory control. e. skunkwork inventory control.

d. just-in-time inventory control.

60. The ethical decision approach that requires persons to be guided by standards of equity, fairness and impartiality is the: a. moral-rights approach. b. individualism approach. c. utilitarian approach. d. justice approach. e. discretionary responsibility.

d. justice approach.

167. The strategy that the BCG matrix suggests that Theresa should take for this SBU is: a. invest and grow. b. liquidate while still profitable. c. ask her astrologer for advice. d. keep the SBU healthy and use its excess earnings to invest in other SBU's. e. divestiture.

d. keep the SBU healthy and use its excess earnings to invest in other SBU's.

55. Amanda Rowley, President of Autos-R-Us, recognizes the factory employees for their outstanding performance at the monthly awards banquet on the shop floor by presenting a plaque and a check for $100. She is engaging in the management function of . a. bribery b. organizing c. technical skills d. leading e. controlling

d. leading

79. All of the following are characteristics of the classical decision making model except: a. clear-cut problems and goals. b. conditions of certainty. c. rational choice by individual for maximizing outcomes. d. limited information about alternatives and their outcomes. e. all of these are characteristics of classical decision making model.

d. limited information about alternatives and their outcomes.

57. The approach refers to the ethical concept that moral decisions are those that best maintain the rights of those people affected by them. a. individualism b. justice c. utilitarian d. moral-rights e. discretionary responsibility

d. moral-rights

67. Relative to a flat organizational structure, a tall structure has a span of management and hierarchical levels. a. wide; fewer b. narrow; fewer c. narrow; wider d. narrow; more e. wide; more

d. narrow; more

72. Organizational development can help managers address problems such as merger/acquisitions, conflict management, and . a. cultural changes b. force field analysis c. organizational productivity d. organizational decline/revitalization e. none of these

d. organizational decline/revitalization

93. The model of decision-making is useful for making nonprogrammed decisions when conditions are uncertain, information is limited, and there are managerial conflicts about what goals to pursue or what course of action to take. a. classical b. functional c. bureaucratic d. political e. administrative

d. political

169. SS.com subsidiary for Swift Stocks can be classified as a . a. cash cow b. dog c. star d. question mark e. stuck in the middle business

d. question mark

46. All of the following are critical innovation strategies for changing products and technologies EXCEPT . a. exploration b. cooperation c. innovation roles d. risk propensity e. all of these are critical innovation strategies

d. risk propensity

87. The essence of is to choose the first solution available. a. bounded rationality b. creativity c. decision maximization d. satisficing e. the classical model of decision making

d. satisficing

62. Traditionally, a span of management of about has been recommended. a. three b. five c. fifteen d. seven e. twenty

d. seven

76. A project is an example of a: a. policy. b. standing plan. c. procedure. d. single-use plan. e. rule.

d. single-use plan.

125. In production, firms produce goods in batches of one or a few products designed to customer specification. a. service b. customer-induced c. continuous process d. small batch e. mass

d. small batch

106. Marissa was recently assigned to a committee whose task is to research new product opportunities. Once this group generates a list of six or seven viable options, it will be disbanded. This group is also known as a . a. team b. standing committee c. permanent committee d. task force e. none of these

d. task force

82. A step in the diagnosis stage of organizational development in which participants are made aware of problems is referred to as _____, a. change agent b. changing c. refreezing d. unfreezing e. exercising

d. unfreezing

115. Kara's department is made up of people with similar skills and work activities. Her organization uses the approach to departmentalization. a. team-based b. horizontal matrix c. divisional d. vertical functional e. process

d. vertical functional

87. Walt works for a large company. Recently, his organization began to contract out such functions as training, engineering, and computer service. This approach is consistent with a structure. a. functional b. team c. divisional d. virtual network e. service

d. virtual network

112. A group of planning specialists assigned to major departments and divisions to help managers develop their own strategic plans is called .

decentralized planning staff

131. A(n) is a choice made from available alternatives.

decision

94. Of the following, which may whistle-blowers suffer? a. Job loss b. Ostracism by coworkers c. Transfer to lower-level position d. Hostile work environment e. All of the above

e. All of the above

Scenario - Javier Gomez Javier is a veteran manager with Pixel International, Inc. (PII). Recently PII purchased a small business in the printing industry. Javier has been assigned the task of managing this new acquisition and is currently deciding how best to design its structure. Currently, employees are assigned to one of three departments, including sales, production, and legal defense. 163. In determining Javier's span of management, he should consider which of the following? a. Is the work performed by subordinates stable and routine? b. Do subordinates perform similar tasks? c. Are rules and procedures defining task activities available? d. Do Javier's personal preferences and style favor a larger or small span? e. All of these.

e. All of these.

119. Finance managers at Big Bend Inc. made a financial blunder when they solely looked at the previous year's sales to estimate sales for the coming year. Of which management bias is this an example? a. Being influenced by emotions b. Perpetuating the status quo c. Seeing what you want to see d. Justifying past actions e. Being influenced by initial impressions

e. Being influenced by initial impressions

160. According to the BCG Matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share? a. Question mark b. Asterisk c. Dog d. Star e. Cash cow

e. Cash cow

104. plays a key role in creating an organizational climate that enables learning and innovative responses to threats from the external environment, challenging new opportunities, or organizational crises. a. Mission statement b. Vision statement c. Competitive intelligence d. Employee training e. Corporate culture

e. Corporate culture

97. Which of the following countries possesses a low degree of gender differentiation? a. China b. Brazil c. Italy d. South Korea e. Denmark

e. Denmark

Scenario - Jaimie Hall The continuing development and improvement of computer information systems has made a powerful impression on Jaimie Hall, CEO of See-Saw City (SSC). The current computer system at SSC is seven years old, and while still highly useful and reliable, Jaimie is wondering if a new system would be more efficient and more useful. Jaimie recognized that some of her managers would prefer to keep the old system, while others have been requesting that the company update its information capability. 107. Jaimie recognized that creativity is an essential ingredient in developing solutions to organizational problems. Which of the following is NOT a characteristic of a creative manager? a. Conceptual fluency and open mindedness b. Originality c. Focused approach d. Commitment e. Disciplined and team dependent

e. Disciplined and team dependent

103. Kim, a Japanese expatriate working in Denmark, tends to use communication primarily to build personal social relationships. She feels that relationships and trust are more important than business. Kim is surprised that her business associates in Denmark do not share the same views. Based on this information, Kim most likely grew up in what type of culture? a. Human-oriented b. Passive c. Assertive d. Low-context e. High-context

e. High-context

106. With its large English-speaking population, has numerous companies offering services such as call-center operations, data-processing, computer programming, and technical support. a. Greenland b. Russia c. China d. Mexico e. India

e. India

79. _____ is an approach that brings together participants from all parts of the organization to discuss problems or opportunities and plan for major change. a. Virtual-group intervention b. Traditional organization development c. Multi-unit intervention d. Strategic planning committee e. Large-group intervention

e. Large-group intervention

80. Which of the following is a commonly-cited limitation of planning? a. Plans limit employee motivation and commitment. b. Plans make resource allocation more difficult. c. Plans make it more difficult to measure standards of performance. d. Plans boost intuition and creativity. e. Plans can create a false sense of security.

e. Plans can create a false sense of security.

75. matches with the postconventional level of personal moral development. a. Team oriented b. Autocratic c. Guiding/encouraging d. Coercive e. Servant leadership

e. Servant leadership

44. Regina, owner and operator of a small restaurant, believes that her most important task as manager is establishing goals for the restaurant and deciding what must be done to achieve them. This involves which aspect of what managers do? a. Organizing b. Motivating and communicating c. Measuring d. Developing people e. Setting objectives

e. Setting Objectives

59. are called the action steps by which an organization intends to attain its strategic goals. a. Tactical goals b. Operational goals c. Tactical plans d. Operational plans e. Strategic plans

e. Strategic plans

85. Which of the following concepts argues that organizations can find innovative ways to create wealth at the same time they are preserving natural resources? a. Preservation b. Conservation c. Environmentalism d. Protectionism e. Sustainability

e. Sustainability

Scenario - Vaughn Bately Vaughn Bately manages a group of eight electrical engineers at Defiance Designs. His team is highly trained and well respected by experts both inside and outside the company. Recently one of Vaughn's engineers suggested a new technique for the development and use of an argon laser. There appeared to be rich potential for this technology, but Vaughn wasn't certain that developing this technology was the best use of his limited resources. Vaughn was facing a significant decision. 128. If Vaughn uses the classical model of decision making, which of these assumptions would he reject? a. The decision maker is rational and uses logic in assigning values and evaluating alternatives. b. The desired decision will maximize attainment of organizational objectives. c. The decision-maker strives for complete certainty, gathering complete information. d. Problems are precisely formulated and defined. e. The decision maker is limited and unable to make economically rational decisions in difficult situations.

e. The decision maker is limited and unable to make economically rational decisions in difficult situations.

110. To overcome the resistance to the new system, Jaimie can use any of the following techniques, EXCEPT: a. education and communication. b. participation in designing the system. c. negotiation. d. coercion. e. all of these can be used.

e. all of these can be used.

100. Advantages of the matrix structure include: a. it increases employee participation. b. it makes efficient use of human resources. c. it works well in a changing environment. d. it develops both general and specialist management skills. e. all of these.

e. all of these.

147. Techniques used to monitor external environments include: a. hiring scanning organizations. b. hiring the competitive intelligence professionals. c. government reports. d. professional journals. e. all of these.

e. all of these.

80. Primary stakeholders of an organization include: a. employees. b. customers. c. investors and shareholders. d. suppliers. e. all of these.

e. all of these.

93. Katelynn can anticipate enjoying the advantages of MBO which include: a. increased orientation toward goal achievement. b. performance can improve at all company levels. c. employees are more motivated. d. increased orientation toward goal achievement and motivation. e. all of these.

e. all of these.

122. As a top manager, Joanna works with others within her team every day in making important corporate decisions. Her preferred decision-making approach is to generate as many alternatives to problems as possible in a short amount of time. This approach is referred to as . a. groupthink b. devil's advocacy c. point-counterpoint d. escalating commitment e. brainstorming

e. brainstorming

64. The concept that the party responsible should compensate individuals for the cost of their injuries is referred to as: a. distributive justice. b. injury justice. c. procedural justice. d. organizational justice. e. compensatory justice.

e. compensatory justice.

127. In a organization, the entire work flow is mechanized in a sophisticated and complex form of production technology. a. service production b. mass production c. large-batch production d. small-batch production e. continuous process production

e. continuous process production

117. An organization strives for internal efficiency with a(n) strategy. a. integration b. diversification c. differentiation d. defensive e. cost leadership

e. cost leadership

87. The role involves resolving conflicts among subordinates between the managers department and other departments. a. resource allocator b. entrepreneur c. negotiator d. liaison e. disturbance handler

e. disturbance handler

84. All of the following are the major disadvantages of the matrix structure EXCEPT: a. it generates a large amount of conflict. b. managers spend much time resolving conflict. c. the confusion caused by the dual chain of command. d. the power imbalance that can result between the sides of the matrix. e. enlarged tasks for employees.

e. enlarged tasks for employees.

127. The tendency of organizations to invest time and money in a solution despite strong evidence that is not appropriate is referred to as: a. technological decisions. b. collective intuition. c. decision learning. d. team delay. e. escalating commitment.

e. escalating commitment.

92. One of Hofstede's social values that was developed later is: a. power distance. b. uncertainty avoidance. c. masculinity. d. collectivism. e. long-term orientation.

e. long-term orientation.

98. In a(n) , people use communication primarily to exchange facts and information. a. power culture b. informational culture c. high-context culture d. mid-context culture e. low-context culture

e. low-context culture

94. All of the following are cultural dimensions as defined by the GLOBE Project, except . a. assertiveness b. gender differentiation c. social collectivism d. humane orientation e. masculinity

e. masculinity

106. A high-performance culture is based on all of the following except: a. solid organizational mission. b. shared adaptive values. c. individual employee ownership of bottom-line results. d. individual employee ownership of organization's cultural backbone. e. singular focus on business results.

e. singular focus on business results.

143. The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is known as a(n) . a. goal b. objective c. mission d. vision e. strategy

e. strategy

Melissa Hill, sales manager for One-Hit-Wonder Record Company, was trying to create a new strategy to turn around the declining record sales the company was facing. Melissa needed to find a way to find out what the customers really wanted, since One-Hit-Wonder didn't have accurate information like the competitors did. It was imperative that she find the correct strategy and information because the company was in financial trouble. The company's President wanted all employees to help find information and work as a team to develop better relationships that might help the company. He also stated that he wanted the company to remain an independent company. Melissa realized that through hard work and team efforts, the company could get back on its feet as soon as they got reliable information. 113. Melissa will be working primarily with: a. the legal-political dimension. b. the labor market. c. the internal cultural dimension. d. pressure groups. e. the sociocultural dimension.

e. the sociocultural dimension.

98. All of the following are advantages of a divisional structure EXCEPT: a. high concern for customers' needs. b. fast response, flexibility in an unstable environment. c. emphasis on overall product and division goals. d. development of general management skills. e. there is little duplication of services across divisions.

e. there is little duplication of services across divisions.

85. Juan is a top manager at I.F.L., a matrix organization. He oversees both the product and functional chains of command, and is responsible for maintaining a power balance between the two sides of the matrix. Juan is a _____. a. political leader b. functional leader c. divisional leader d. matrix leader e. top leader

e. top leader

60. The general environment dimension that includes consumer purchasing power, the unemployment rate, and interest rates is called the: a. legal-political dimension. b. sociocultural dimension. c. technological dimension. d. economic dimension. e. task dimension.

economic dimension.

129. List the four responsibilities of corporate social performance.

economic responsibility, legal responsibility, ethical responsibility, and discretionary responsibility

65. Jessica was recently praised by her supervisor for displaying superior customer service during an encounter with a problem customer. This is an example of organizational: a. information processing. b. efficiency. c. effectiveness. d. structure. e. goal-setting.

effectiveness.

66. Stefan, a supermarket cashier, recently received an award for having the highest scan rate among all cashiers. This is an example of organizational: a. performance. b. efficiency. c. effectiveness. d. structure. e. goal-setting.

efficiency.

102. A(n) arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.

ethical dilemma

84. The level of corporate culture in which values are so deeply embedded that members are no longer consciously aware of them is: a. invisible artifacts. b. expressed values and beliefs. c. explicit code of conduct. d. dress and office layout. e. slogans and ceremonies.

expressed values and beliefs.

20. An example of part of the legal-political dimension of the general environment is a government's report on the decline of unemployment rate. a. True b. False

false

27. Market risk is defined as the risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments. a. True b. False

false

38. The early study of management as we know it today began with what is now called the technology-driven workplace. a. True b. False

false

40. Today's managers rely on "management by keeping tabs" and play the role of a controller instead of an enabler. a. True b. False

false

45. Companies in Quadrant D put high emphasis on both culture and solid business performance as drivers of organizational success. a. True b. False

false

11. The least costly and least risky direct investment is called a greenfield venture. a. True b. False

false When a company builds a subsidiary from scratch in a foreign country it is called a greenfield venture.

152. An alternative for assigning divisional responsibility is to group company activities by .

geographic region

118. Whereby a company builds a subsidiary from scratch in a foreign country, is referred to as a(n) , and is the most risky type of direct investment.

greenfield venture

91. A figure who exemplifies the deeds, character, and attributes of a corporate culture is referred to as a: a. symbol. b. stories. c. slogan. d. hero. e. culture.

hero

133. A country that places emphasis on fairness and values kindness would be described by the Globe Project as high in _____.

humane orientation

152. The stage involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out.

implementation

74. Shyloh is a research analyst who gets things done mostly through her own efforts, relying on herself rather than others. Shyloh can best be described as a(n): a. first-line manager. b. middle manager. c. individual performer. d. top manager. e. functional manager.

individual performer.

105. The approach contends that acts are moral when they promote the individual's best long-term interests.

individualism

129. A preference for a loosely knit social framework in which individuals are expected to take care of themselves is called .

individualism

125. A country's physical facilities that support economic activities make up its .

infrastructure

78. Companies can reduce boundaries and increase collaboration with other organizations by creating: a. flexible structures. b. interorganizational partnerships. c. new company cultures. d. new supplier connections. e. none of these.

interorganizational partnerships.

70. One of the things managers enjoy doing the most is: a. financial planning. b. controlling activities. c. planning for future decisions. d. leading others. e. hiring new employees.

leading others.