EXAM #1

Ethan is the president of his organization. Therefore, ________.

conceptual skills are the most important skills that Ethan requires

Inclusion is one of the most popular and controversial topics in management.

false

It is important that decision-makers ignore emotions when making business decisions so their decisions will be perceived as rational.

false

Licensing is primarily used by service organizations and franchising is primarily used by manufacturing organizations.

false

Managers of high-performing companies tend to consider the interests of the most profitable stakeholder groups as they make decisions.

false

Nonprogrammed decision making relies on procedures, rules, and policies.

false

One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.

false

People with an internal locus of control believe that what happens to them is due to luck or chance.

false

The Global Contract is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption.

false

The decision-making process begins by identifying decision criteria.

false

The ________ decentralizes its management and other decisions to the local country.

multidomestic corporation

Giving service-contact employees the discretion to make day-to-day decisions on job-related activities is instrumental in creating a customer-responsive culture.

true

Which of the following managerial styles is traditionally considered to be masculine?

leading by example

Miller's Multivitamins uses only organically grown fruits and vegetables in its vitamins. It purifies any water used in its processes before releasing it back into the environment and exceeds the EPA requirements for cleaning particulates from the air it uses. Which approach to green management does Miller's Multivitamins use?

Activist

Alfredo believes that the CEO is no better than the janitor of the organization and neither should receive preferential treatment. Using the GLOBE model, what can we infer about Alfredo's culture?

Alfredo's culture is low in power distance.

Which one of the following organizations is best suited to promote ethical behavior in its employees?

An organization that has formal rules and regulations in place.

Which one of the following statements highlights the shared aspect of culture?

Even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization's culture in similar terms.

Which of the following most accurately reflects the symbolic view of management?

External forces are responsible for an organization's success or failure.

Pressure to perform and meet goals has little impact on an employee's decision to behave ethically.

False

John is offered an attractive incentive to steal sensitive information about his company's wealthy investment customers. Which one of the following statements best reflects John's thoughts if he is at the preconventional level of moral development?

I am liable to be criminally prosecuted for my involvement in stealing the information.

Which of the following factors is a sociocultural component of an organization's external environment?

Over time, society has become more accepting of alternative lifestyles.

How does surface-level diversity differ from deep-level diversity?

Surface-level diversity can affect the way people perceive others, especially in terms of assumptions or stereotyping, while deep-level diversity may affect general behavior of people at work.

Hofstede's Five Dimensions of National Culture would predict which of the following?

The French employees believe that rank should have its privileges. A manager in Sweden will be driven to compete, to excel, and to amass wealth

Jack moved to China to manage his company's production facility there. Immediately he instituted the company practice of recognizing an employee of the month. The Chinese employees were horrified. Why might this be so?

The employees are acting on their national cultural behavior patterns.

According to the socioeconomic view, managers' social responsibilities go beyond making profits to include protecting and improving society's welfare.

True

At the principled level of moral development, an individual values the rights of others and upholds absolute values and rights regardless of the majority's opinion.

True

Efficiency is described as "doing things right."

True

Figurehead, leader, and liaison are all informational managerial roles according to Mintzberg.

True

In order for organizations to survive successfully, managers must create a customer-responsive organization.

True

In the preconventional stage of moral development, individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or of society in general.

True

Managers play an important role in dealing with various challenges being faced by organizations today.

True

Middle managers are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization.

True

One argument against businesses championing social responsibility issues is that businesses already have too much power.

True

Under what approach is the organization driven to look for ways to respect and preserve the earth and its natural resources?

activist approach

The ________ describes how decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.

anchoring effect

Which of the following examples would be considered appropriate stereotyping?

asking someone from accounting to help with a budgeting problem

How can managers identify the ethically questionable applicants even before they become part of the workforce?

by including integrity testing in the selection process

Bruce will be making a presentation to the senior management team to encourage them to support efforts to improve the company's diversity policies and practices. One of the more compelling arguments he can use is ________.

companies with inclusive practices outperformed their competitors

At the ________ level of moral development, ethical decisions rely on maintaining expected standards and living up to the expectations of others.

conventional

The term ________ refers to repetitive sequences of activities that express and reinforce the important values and goals of the organization.

corporate rituals

Belinda wants to introduce a new model to the product line. Three models are being developed. Belinda can choose only one. She has decided to focus on target market size, production costs, and net profits. These are Belinda's ________.

decision criteria

If mortgage interest rates increase, this would be an example of changing ________ conditions in a firm's external environment.

economic

Which of the following statements is true concerning problem identification?

effectively identifying problems is not easy

Ellen's ability to produce the same amount of product with fewer personnel is a reflection of her ________.

efficiency

Farrah has called together her management team to review information about customer satisfaction gathered by an external research company. Farrah is engaging in ________.

evidence-based management

A dynamic and simple environment is characterized by the greatest level of environmental uncertainty.

false

A transnational organization reflects an ethnocentric attitude.

false

An important impact that workplace diversity has on organizational performance is through the increase in employee turnover.

false

Because a company's culture has so much influence on managers' decisions, it is important that each manager have a published code clearly stating the company's cultural guidelines.

false

Effectiveness refers to getting the most output from the least amount of input.

false

Employers are justified if they do not hire workers with disabilities as they lack job skills and experience necessary to perform as well as their abled counterparts.

false

Environmental uncertainty refers to the number of components in an organization's environment and the extent of the knowledge that the organization has about those components.

false

Firms that compete in non-technology markets, such as retailers, need not concern themselves with innovation.

false

Implementing an alternative refers to the process of choosing the best alternative.

false

In the symbolic view of management, managers are seen as directly responsible for an organization's success or failure.

false

The process of exporting involves acquiring products made abroad and selling them domestically.

false

The shared aspect of culture implies that all employees in an organization agree with the organization's values and beliefs.

false

The symbolic view of management impact is useful in explaining the high turnover among sports coaches, who can be considered the "managers" of their teams.

false

U.S. federal law does not prohibit discrimination against employees on the basis of sexual orientation.

false

When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities, it is said to be socially responsive.

false

When an American company earns profits in a foreign country, those profits are taxed according to the tax laws of the United States.

false

Workplace diversity refers exclusively to the differences between employee characteristics.

false

Kelly, a production supervisor, is responsible for ten employees who assemble components into a finished product. Kelly is a ________.

first-line manager

Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use their software, brand name, and business methods in return for a lump sum payment and a percentage of sales. The European firm is a service organization that plans to use the software to serve its customers. Their agreement is a(n) ________.

franchise agreement

Design thinking suggests that managers should look at problem identification collaboratively and integratively with the goal of ________.

gaining a deep understanding of the situation

Which of the following factors is a demographic component of an organization's external environment?

geographic location

Marco works for a multinational corporation as a plant manager but must receive approval from the home office for any management changes to production processes. Marco most likely works for a ________.

global company

Because this is her first job, Melanie was unclear about what managers actually do. Fortunately her training materials explained that a manager's job focuses on ________.

helping others accomplish their work goals

Because Sterling is a shift manager, ________.

his technical skills are of the utmost priority

Nora has just informed her employer that she is expecting her second child. Her employer immediately moved her to a position of less responsibility and pay and less physical activity. This action is ________.

illegal under the Pregnancy Discrimination Act

Natalya operates a retail store in Romania. She buys consumer electronics from vendors in China and Japan to sell in her store. Natalya is engaging in ________,

importing

The Foreign Corrupt Practices Act makes it illegal for U.S. firms to ________.

knowingly corrupt a foreign official make any cash payment for deferential treatment in a foreign transaction

When Fred tells the employees that he is sure they can fulfill the schedule because they are good and skilled employees, he is performing which of the following management functions?

leading

The dominant view in management theory suggests that ________.

managers are directly responsible for an organization's success or failure

In the ________ approach of going green, organizations respond to the environmental preferences of customers.

market

Tom is responsible for project managers who supervise others who perform manual work. He reports to a vice president on another continent. Tom is a ________.

middle manager

The soccer league in England is notorious for the number of team managers fired over the course of a single season, which stands at no fewer than eight managers on average, owing to poor team form and consequently, poor results. It is evident from this information that the league endorses a(n) ________ view of management.

omnipotent

Which of the following best describes the psychological orientation of an individual making a "maximax" choice?

optimist

An ethnocentric attitude stems from ________.

parochialism

Google has often been cited as a model for employee satisfaction. Google takes extensive care to ensure employees have the best available conditions to perform, ranging from free snack bars, free massages, innovation rooms, spas-on-site, and many more such measures. Which dimension of organizational culture is Google said to emphasize through such measures?

people orientation

One of the workers in Henry's department submitted his two weeks' notice so Henry needs to hire a replacement. The HR department issued a set of instructions Henry must follow to initiate the search for candidates. In other words, there is a ________ Henry must follow.

procedure

Which one of the following is an example of an efficient manufacturing technique?

reducing the amount of scrap created in the process of making a product

Managers cannot possibly analyze all information on all alternatives; they tend to ________, rather than ________.

satisfice; maximize

If the components in an organization's environment exhibit minimal change, such an environment is said to be ________.

stable

In workplace jargon, the term "glass ceiling" refers to ________.

the invisible barrier that separates women and minorities from top management positions

What positive perception do employers typically have of older employees?

strong work ethic

Which one of the following arguments on social responsibility states that businesses should address social problems before they become serious and costly to correct?

superiority of prevention over cures

Jack and Jill are discussing the new hire in their department: her hair color, skin tone, manner of dress, and accent. Jack and Jill are focusing on ________.

surface level diversity

From a business perspective, a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies is known as ________.

sustainability

As chief of new product development for a U.S. consumer goods firm, Carmen should be very aware that ________ is likely to have the greatest influence on consumer preferences for the next few decades.

the aging of the population

Terry has recently been promoted from shift manager to department manager. As a result, ________.

the importance of his technical skills is reduced

A global mind-set refers to attributes that allow a leader to be effective in cross-cultural environments.

true

A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety.

true

A programmed decision is a repetitive decision that can be handled by a routine approach.

true

A strategic alliance is a partnership between an organization and a foreign company partner in which both share resources and knowledge in developing new products or building production facilities.

true

As part of Dave's controlling function of management, he must monitor and evaluate performance.

true

Design thinking is an interesting new line of thinking with broad implications for making effective business decisions by integrating emotional elements into the process.

true

In the job setting, African Americans are found to receive lower job performance ratings, be paid less, and be promoted less frequently than their white counterparts.

true

In traditionally structured organizations, managers can be classified as first-line managers, middle managers, or top managers.

true

Managers use decision-making in every function, from planning to controlling.

true

Managers with a polycentric attitude tend to view every foreign operation as different and hard to understand.

true

Managers with an ethnocentric attitude do not trust foreign employees with key decisions or technology.

true

Mexico is an example of a collectivistic nation.

true

One of the strategic benefits of workplace diversity is that it can be viewed as the "right" thing to do.

true

People aged 65 and older are expected to soon outnumber children under age 5 for the first time in history.

true

Teams with diverse backgrounds performing interdependent tasks over a long period of time are more likely to experience conflict and resentment.

true

The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.

true

The greater the probability that some action will cause harm, the greater the intensity of the issue.

true

The sunk costs error occurs when decision makers forget that current choices cannot correct the past.

true

In the late 1970s, Apple launched the Apple computer for individual use. It was a radical concept; there was no precedent for this type of product. Under these circumstances, Apple faced a situation of ________.

uncertainty

Farrell has a knack for selecting candidates who become very successful workers. When asked how he does it, he answered that he "listened to his gut." Farrell is really ________.

using his intuition

If Google asks 25 members of its executive team to spend a full day during their annual team-building retreat building a house in Las Vegas with Habitat for Humanity, the executives would be engaging in employee ________.

volunteering efforts

Heinrich, a purchaser for an optics company in Germany, must place an order for materials for use in its production process. He is most likely to order from a company ________.

within the European Union because there would be no barriers to trade in Asia because labor is cheaper there