Management 300 Exam 2 Study Questions

Which of the following would NOT be included among the most frequently used selection devices? Employment test Job description Interview Application form

Job description (In the selection process of assessing applicants' characteristics and qualifications, the most frequently used selection devices are the application form, interview, and employment test. See Section 9.4: Finding the Right People.)

The doctors at St. Luke's General Hospital are reluctant to use the new electronic record system because it might affect how long it will take to chart their patient visits. Which of the following barriers to change are they exhibiting? Goals and rewards Uncertainty Disagreements about the benefits Self-interests

Uncertainty (The doctors are exhibiting a lack of information about future events. See Section 8.1: Innovation and the Changing Workplace.)

The components of a SWOT analysis include which of the following? Skills Organization Weaknesses Talent

Weaknesses (A SWOT analysis assesses an organization's strengths, weaknesses, opportunities, and threats. See Section 5.9: What Is Strategic Management?)

Which of the following questions is a human resources department most likely to ask in forecasting a company's HR needs? Is it better to do internal recruiting or external recruiting? Have any changes been made to the U.S. Tax Code that we need to incorporate? What new technologies are emerging, and how will these affect the work system? What new regulations has OSHA put in place?

What new technologies are emerging, and how will these affect the work system? (By anticipating future HR needs—deciding the qualifications and numbers of people needed—the organization can prepare itself to meet competitive challenges more effectively than organizations that react to problems only as they arise. See Section 9.4: Finding the Right People.)

After the Bangladesh clothing factory fire, Walmart's decision to blacklist suppliers with safety problems could best be described as which of the following types of decision? Programmed Bounded Conventional Wicked decision problem

Wicked decision problem (A programmed decision is one made in response to a recurring organizational problem. A highly ambiguous situation can create a wicked decision problem like the one Walmart faced after the Bangladesh factory fire. Walmart's global supply chain is so broad and diffuse that managers have a hard time determining whether some products it purchases come from factories and suppliers that have safety problems. See Section 6.1: Types of Decisions and Problems.)

Ronald changed his position in the middle of a debate over a new corporate policy to ensure that other managers weren't just going along with his opinions. He was using: satisficing. escalating commitment. point-counterpoint. a devil's advocate.

a devil's advocate. (An escalating commitment is a tendency to continue to invest time and money in a solution even when there is strong evidence that it is not appropriate. Ronald is playing the devil's advocate role of challenging the assumptions and assertions made by the group. See Section 6.6: Innovative Decision Making.)

In the context of Porter's competitive strategies, which of the following is an organizational characteristic typically associated with differentiation? a. It involves rewarding employee innovation. b. It involves strong central authority. c. It involves weak marketing abilities. d. It involves weak coordination among departments.

a. It involves rewarding employee innovation. (Differentiation involves rewarding employee innovation. See 5-11: Formulating Business-Level Strategy)

Check My Work Manufacturing large numbers of like items, such as the iPhone, over an extended period of time is an example of what type of production? a. Mass production b. Small-batch production c. Flow production d. Continuous process production

a. Mass production (Mass production is characterized by long production runs to manufacture a large volume of products with the same specifications. See 7-4: Factors Shaping Structure)

Javier is the manager at a software company. His team has been tasked with finding a solution for some annoying bugs found in their new spreadsheet software. Javier knows that there is an elegant solution, but the time and effort it will take to implement would push back the software release significantly, so he works with his team to come up with a faster, less elegant solution that can be implemented in time for the software to be released on schedule. What type of decision is Javier making? a. Satisficing b. Intuition c. Bounded rationality d. Brainstorming

a. Satisficing (Satisficing means that decision makers choose the first solution alternative that meets minimal decision criteria. See 6-2: Decision-Making Models)

Under what circumstances is negotiation a particularly useful strategy in creating change? a. When a group has power over implementation or a group will lose out in the change b. When users need to feel involved or have the power to resist c. When change is technical and users need accurate information d. When a crisis exists and change is essential or when other methods have failed

a. When a group has power over implementation or a group will lose out in the change (When a group has power over implementation or a group will lose out in the change, negotiation may be particularly useful. See 8-4 Implementing Change)

Karl is part of the executive management team at Metro Realtors. Karl's company experienced the effects of the 2008 housing market crisis. Because the executive team had done a good job of planning and developing plans as a guide to action, Metro was: able to remain organizationally flexible. hit hard because of a false sense of certainty. stuck in inflexible courses of action. left playing it safe and unable to take advantage of unexpected opportunities.

able to remain organizationally flexible. (Managing under conditions of change and uncertainty requires a degree of flexibility. Effective planning focuses attention on specific targets and directs employee efforts toward important outcomes. See Section 5.4: Benefits and Limitations of Planning.)

The _____ model recognizes the human and environmental limitations that affect the degree to which managers can pursue a rational decision-making process. administrative normative political classical

administrative (The political model deals with conflicting goals and conditions of uncertainty or ambiguity. The administrative model recognizes the human and environmental limitations that affect the degree to which managers can pursue a rational decision-making process. See Section 6.2: Decision-Making Models.)

Good decision making is a vital part of good management because decisions determine how: groupthink can be eliminated. conflicting viewpoints can be brought into harmony. an organization can accomplish its goals. an organization can perpetuate its status quo.

an organization can accomplish its goals. (Good decision making is a vital part of good management because decisions determine how an organization solves problems, allocates resources, and accomplishes its goals. See Section 6.1: Types of Decisions and Problems.)

Companies that use realistic job previews find that: they contribute to higher turnover. applicants are better able to "self-select" out of positions. they contribute to lower job satisfaction. it is unhelpful to provide negative information about the job.

applicants are better able to "self-select" out of positions. (Realistic job previews give applicants all pertinent and realistic information—positive and negative—about the job and the organization, contributing to greater employee satisfaction, lower turnover, and a better basis for applicants to "self-select" into or out of positions based on full information. See Section 9.4: Finding the Right People.)

When soldiers detect a piece of concrete that looks too symmetrical or feel a different tension in the air, they are: applying intuition. satisficing. making a programmed decision. using coalition.

applying intuition. (A programmed decision is one made in response to a situation that has occurred often enough to enable managers to develop decision rules that can be applied in the future. Intuition represents a quick apprehension of a decision situation based on past experience but without conscious thought. This is an example of using intuition under extreme time pressure and uncertainty. See Section 6.2: Decision-Making Models.)

Which of the following is an assumption underlying the political model of decision making? a. It assumes that decision makers operate to accomplish goals that are known and agreed on. b. It assumes that decisions are the result of bargaining and discussion among coalition members. c. It assumes that decision makers are completely rational and use logic to assign values, order preferences, and evaluate alternatives. d. It assumes that managers have the time, resources, and mental capacity to identify all dimensions of the problem at hand.

b. It assumes that decisions are the result of bargaining and discussion among coalition members. (The political model of decision making assumes that 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. See 6-2: Decision-Making Models)

Which of the following goals applies primarily to middle management? a. Ad hoc goals b. Tactical goals c. Strategic goals d. Operational goals

b. Tactical goals (Tactical goals apply primarily to middle management. See 5-2: Goal Setting in Organizations)

Which question may appropriately be asked of a job applicant? a. What hobbies do you enjoy? b. What is your full name? c. What religious holidays would you like to take off? d. What is your marital status?

b. What is your full name? (It is acceptable to ask an interviewee what his or her name is, but questions about religion, marital status, and hobbies are not acceptable. See 9-4 Finding the Right People)

Lukas has been working as a manager of a small team at his finance office for several years. One of the reasons he enjoys his job so much is that there isn't pressure from the top for him to perform tasks in a specified way. Instead he solves most problems that arise in his department on his own without upper management making those decisions for him. Lukas is part of a system that uses _______ as its primary method of making decisions. a. distributed authority b. decentralization c. staff authority d. centralization

b. decentralization (Centralization and decentralization pertain to the hierarchical level at which decisions are made. Decentralization means that decision authority is pushed downward to lower organization levels. See 7-1: Organizing the Vertical Structure)

The belief that one's own group and culture are inherently superior to other groups and cultures is called _____. a. ethnorelativism b. ethnocentrism c. pluralism d. exceptionalism

b. ethnocentrism (Ethnocentrism is the belief that one's own group and culture are inherently superior to other groups and cultures. See 9-9 Factors Shaping Personal Bias)

The systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job is called _____. a. performance evaluation b. job analysis c. skill analysis d. task evaluation

b. job analysis (Job analysis is a systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job, as well as about the context within which the job is performed. See 9-4 Finding the Right People)

Raj, a lower-level manager at a content writing firm, instructed his subordinate to complete 12 articles by the end of the week. This is most likely an example of a(n) _____. a. tactical goal b. operational goal c. strategic goal d. distal goal

b. operational goal (This is most likely an example of an operational goal. The results expected from departments, work groups, and individuals are operational goals. See 5-2: Goal Setting in Organizations)

Hannah has invested in a business unit in a new and rapidly growing industry that has a small market share. In the context of the BCG (Boston Consulting Group) matrix, Hannah has most likely invested in a _____. a. cash cow b. question mark c. star d. dog

b. question mark (In this scenario, Hannah has most likely invested in a question mark. In a BCG matrix, the question mark exists in a new, rapidly growing industry, but has only a small market share. See 5-10: Formulating Corporate-Level Strategy)

In the context of competitive advantage, when an organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone, it is referred to as _____. a. turnover b. synergy c. dysergy d. catharsis

b. synergy (When organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone, synergy is achieved. See 5-8: What Is Strategic Management?)

Force-field analysis suggests that _____. a. the only effective way to ensure change is to force it b. when restraining forces are removed, driving forces will produce change c. driving forces and restraining forces must be balanced d. change almost always occurs from the bottom up

b. when restraining forces are removed, driving forces will produce change (When a change is introduced, managers should analyze both the forces that drive change (problems and opportunities) and the forces that resist it (barriers to change). By selectively removing forces that restrain change, the driving forces will be strong enough to enable implementation. See 8-4 Implementing Change)

The term _____ is used to describe a target that is so large, inspiring, and outside the prevailing paradigm that it hits people in the gut and shifts their thinking. big hairy audacious goal core competence scenario planning out-of-the-box thinking

big hairy audacious goal (The phrase big hairy audacious goal (BHAG) was first proposed by Collins and Porras in their 1996 article entitled "Building Your Company's Vision" and refers to big and inspiring goals that are outside the prevailing paradigm. See Section 5.6: Innovative Approaches to Planning.)

In the BCG matrix, _____ pertains to how rapidly the entire industry is increasing. cash cow status market share business growth rate market segmentation

business growth rate (The BCG matrix organizes businesses along two dimensions—business growth rate and market share. Business growth rate refers to how rapidly the entire industry is increasing. Market share defines whether a business unit has a larger or smaller share than competitors. See Section 5.10: Formulating Corporate-Level Strategy.)

The large-group model of organizational development _____. a. focuses on a specific problem b. limits the distribution of information c. seeks information from the organization and the environment d. seeks incremental change

c. seeks information from the organization and the environment (The large-group model of organizational development focuses on the entire system, seeks information from both the organization and the environment, distributes information widely, and seeks rapid transformation. See 8-3 Changing People and Culture)

The company Lucy works for is made of cross-functional teams that focus on the project at hand. The projects they get are extremely customer oriented and involve highly detailed planning from the beginning planning stages, to figuring out specific manufacturing puzzles, and finally to the production of what the customer wants. This type of manufacturing process is best categorized as _______. a. technical complexity production b. continuous production c. small batch and unit production d. mass production

c. small batch and unit production (Small batch production focuses on the specific needs of the customer and involves one to just a few items being manufactured. Examples are space capsules, satellites, and specialized construction equipment. See 7-4: Factors Shaping Structure)

David, a middle-level manager in a graphic design firm, presents a detailed estimate of his team's budget and the approximate number of resources required for the next year. In this scenario, David has most likely contributed to developing the company's _____. a. ad hoc plan b. strategic plan c. tactical plan d. single-use plan

c. tactical plan (In this scenario, David has most likely contributed to developing the company's tactical plan. Tactical plans are designed to accomplish a specific part of a company's strategy. Tactical plans typically have a shorter time horizon than strategic plans—that is, over the next year or so. See 5-2: Goal Setting in Organizations)

Companies in California often make _____ that outline the actions the company would need to take if an earthquake were to occur. standing plans tactical plans strategic plans contingency plans

contingency plans (Contingency plans define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions. To develop contingency plans, managers identify important factors in the environment, such as possible economic downturns, declining markets, increases in cost of supplies, new technological developments, or safety accidents. See Section 5.5: Planning for a Turbulent Environment.)

The engineering design and production departments at Power Tools Inc. have new models in several of their product lines; however, demand for these new tools have been low. The engineers have not done a good job of communicating with the marketing and sales department about the new features. This situation is an example of poor: leading. coordination. planning. reengineering.

coordination. (Coordination refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments. Without coordination, a company's left hand will not act in concert with the right, causing problems and conflicts. See Section 7.3: Organizing for Horizontal Coordination.)

The Fins and Trappe Accounting Firm shifted its basic mind-set from an organization focused on billing to one dedicated to informing, educating, and serving customers. The firm is attempting: culture change. artifact change. organization change. people change.

culture change. (Culture change pertains to changing the organization as a whole. See Section 8.3: Changing People and Culture.)

The degree to which an employee feels like an esteemed member of a group in which his or her uniqueness is highly appreciated is called _____. a. nondiscrimination b. openness c. diversity d. inclusion

d. inclusion (Inclusion is the degree to which an employee feels like an esteemed member of a group in which his or her uniqueness is highly appreciated. See 9-8 Managing Diversity)

People who prefer the _____ style usually are efficient and rational and prefer to rely on existing rules or procedures for making decisions. conceptual directive analytical behavioral

directive (The behavioral style is often adopted by managers who have a deep concern for others. People who prefer the directive style generally are efficient and rational and prefer to rely on existing rules or procedures for making decisions. See Section 6.4: Personal Decision Framework.)

The Equal Pay Act prohibits differences in pay for equal work on account of: religion. gender. age. race.

gender (The Equal Pay Act of 1963 prohibits sex differences in pay for substantially equal work. See Section 9.2: The Impact of Federal Legislation on HRM.)

When people share information freely across departmental boundaries, the organization: has a low level of horizontal coordination. has a high level of relational coordination. finds formal coordination roles or mechanisms are necessary. uses task forces and standing committees to resolve issues.

has a high level of relational coordination. (The highest level of horizontal coordination is relational coordination. In an organization with a high level of relational coordination, people share information freely across departmental boundaries, and people interact on a continuous basis to share knowledge and solve problems. See Section 7.3: Organizing for Horizontal Coordination.)

When CEOs were surveyed as to what factors were important for maintaining competitive success, _____ was listed as important by 71 percent of those surveyed. physical resources product and service innovation human capital customer relationships

human capital (A survey of more than 1,700 CEOs around the world found that human capital was cited as the top factor in maintaining competitive success, ranking far higher than assets such as technology, physical resources, and access to raw materials. See Section 9.1: The Strategic Role of HRM Is to Drive Organizational Performance.)

During the summer between her final two years of college, Anita had a(n) _____ position at a large news organization, which helped her gain valuable work experience before applying for full-time jobs after graduating with a journalism degree. employment test social contract realistic job preview internship

internship (An internship is an arrangement whereby an intern exchanges his or her services for the opportunity to gain work experience. See Section 9.4: Finding the Right People.)

Kyle manages a research department for his company, which currently has two openings. Before the human resources department will send him applicants to interview for the positions, they want Kyle to provide a _____ that will summarize specific tasks and responsibilities of that position. curriculum vitae job description job specification job application

job description (Managers prepare a job description for each open position, which is a concise summary of the specific tasks and responsibilities of that job. See Section 9.4: Finding the Right People.)

The CEO of Turner Ice Cream has asked the human resources department to put together a report of the various positions within the company and determine each one's worth or value to the output of the company. For this report, the HR staff will need to undertake: social learning. on-the-job-training. wage and salary surveys. job evaluations.

job evaluations. (Job evaluation refers to the process of determining the value or worth of jobs within an organization through an examination of job content. See Section 9.6: Maintaining an Effective Workforce.)

The recent economic downturn has accelerated the erosion of the old social contract between employer and employee. When John was working in the 1980s and the old social contract was in force, John could count on the focus of the social contract to be on his: role in business improvement. personal responsibility toward the organization. employability. job security.

job security. (In the old social contract between organization and employee, the employee contributed ability, education, and commitment and expected in return that the company would provide wages and benefits, work, and training throughout the employee's working life. It focused on the job security of the employee. See Section 9.3: The Changing Nature of Careers.)

Many organizations cut benefits, particularly pension-related benefits, during the recent recession. In the near future, most companies plan to: switch to contract labor. leave those cuts in place. entirely revamp employee compensation. restore those benefits.

leave those cuts in place. (During the recent recession, many companies suspended their contributions to employee 401(k) plans. Moreover, many organizations that cut benefits say that they don't intend to restore them. See Section 9.3: The Changing Nature of Careers.)

The way people typically respond more strongly to potential loss than to expected gain is referred to as: perpetuating the status quo. being influenced by initial impressions. loss aversion. the sunk cost effect.

loss aversion. (The sunk cost effect occurs when a manager continues to pour money into a failing project, hoping to turn things around. People typically respond more strongly to potential loss, referred to as loss aversion. See Section 6.5: Why Do Managers Make Bad Decisions?)

Management at Lisa's company has decided to implement a system in which its managers and employees define goals for their department, along with setting project and individual goals. With this _____ system, the established goals will be used to evaluate subsequent performance. management by means management by observation management-by-objectives management by exception

management-by-objectives (Management-by-objectives (MBO) is a system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. See Section 5.3: Operational Planning.)

In the BCG matrix, _____ defines whether a business unit has a larger or smaller share than competitors. customer loyalty market share business growth rate target market segmentation

market share (In the BCG matrix, market share defines whether a business unit has a larger or smaller share than competitors. Business growth rate pertains to how rapidly the entire industry is increasing. See Section 5.10: Formulating Corporate-Level Strategy.)

ADM is globally the number one processor of oilseeds, corn, wheat, soybeans, peanut, and other similar products. Found on its website, the statement "To unlock the potential of nature to improve the quality of life" is ADM's articulation of its: strategic goals. mission. operational goals. tactical goals.

mission. (The mission—the description of the organization's values, aspirations, and reason for being—is the basis for development of all subsequent goals and plans. See Section 5.2: Goal Setting in Organizations.)

JPMorgan traders took larger and larger gambles because they had become: overconfident in their ability to manage risks. certain that what worked in the past would work in the future. too concerned with maintaining the status quo. afraid of losing too much money.

overconfident in their ability to manage risks. (The JPMorgan traders were overconfident in their ability to spot and manage risks. See Section 6.5: Why Do Managers Make Bad Decisions?)

GM's decision to offer a multitude of brands even after the evidence was clear that only a few brands should be marketed was an example of: justifying past decisions. being overconfident. being influenced by emotions. perpetuating the status quo.

perpetuating the status quo. (GM's managers perpetuated the status quo by basing decisions on what worked in the past and failed to explore new options, dig for additional information, or investigate new technologies. See Section 6.5: Why Do Managers Make Bad Decisions?)

How people perceive problems and make decisions is a result of their: personal preferences. ability to satisfice. political model. personal decision style.

personal decision style. (Differences in the way individuals approach problems and make decisions can be explained by the concept of personal decision styles. See Section 6.4: Personal Decision Framework.)

The evolution of organization structures began with traditional vertical structures, which were followed by cross-functional teams and project managers, and finally by: virtual networks. reengineering to horizontal teams. coordinating task forces. collaborating divisions.

reengineering to horizontal teams. (Reengineering refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Because the focus of reengineering is on horizontal workflows rather than function, reengineering generally leads to a shift away from a strong vertical structure to one emphasizing stronger horizontal coordination. See Section 7.3: Organizing for Horizontal Coordination.)

Elliot wants to expand craft brewery to increase his capacity, and his research indicates that he would likely be able to sell the additional beer. Elliot is operating under a condition of: uncertainty. ambiguity. certainty. risk.

risk (Ambiguity means the goal to be achieved is unclear and alternatives are difficult to define. Elliot's decision has clear-cut goals and his research has provided good information about the possibility of selling additional beer, so he is operating under a condition of risk. See Section 6.1: Types of Decisions and Problems.)

With the organization's mission statement in hand, Marcus and his management team are set to engage in _____, the next step in the organizational planning process. setting strategic goals contingency planning setting operational goals decentralizing responsibility

setting strategic goals (The overall planning process begins with a mission statement and strategic goals for the organization as a whole. See Section 5.2: Goal Setting in Organizations.)

To ensure effectiveness, the most important characteristic of goals is that they must be: specific and measurable. linked to rewards. qualitative. concerned with key result areas.

specific and measurable. (First and foremost, effective goals are specific and measurable. See Section 5.3: Operational Planning.)

How managers actually make decisions rather than how they should make decisions is part of: bounded rationality. the political model. the administrative model. the classical model.

the administrative model. (The political model deals with conflicting goals and conditions of uncertainty or ambiguity. The administrative model is considered to be descriptive, meaning that it describes how managers actually make decisions in complex situations rather than dictating how they should make decisions according to a theoretical ideal. See Section 6.2: Decision-Making Models.)

Natalie is a secretary for several engineers in the product development department. She is quiet and shy as she does her job, but has an uncanny knack of knowing what different engineers will need in the way of supplies or information and will have it for them before they even ask. The department manager, who does not see all of the extra things Natalie does that helps the engineers be more efficient, has conducted a performance appraisal of Natalie's work and has given her mediocre ratings on her effectiveness and efficiency in her job. The manager is guilty of being influenced by: stereotyping. homogeneity. central tendency. the halo effect.

the halo effect. (The halo effect is a rating error in which a manager gives an employee the same rating on all dimensions, even if his or her performance is good on some dimensions and poor on others. See Section 9.5: Developing Talent.)

In pursuing cost leadership as a type of competitive strategy, the organization seeks: to distinguish its products or services from that of competitors. to invest in new technology and marketing. to cut costs and use tight cost controls to be more efficient than others in the industry. to concentrate on a specific regional market or buyer group.

to cut costs and use tight cost controls to be more efficient than others in the industry. (A cost leadership strategy is a strategy with which managers aggressively seek efficient facilities, cut costs, and use tight cost controls to be more efficient than others in the industry. See Section 5.11: Formulating Business-Level Strategy.)

Norman works in the accounting department at his company, which uses a matrix structure. He reports to the vice president of finance. He is also the primary numbers person in the garden products division of the company which is managed by the division manager. Norman is a: matrix boss. two-boss employee. top leader. collaborator.

two-boss employee. (In a matrix structure, some employees, called two-boss employees, report to two supervisors simultaneously. See Section 7.2: Departmentalization.)

Sudheer, a store manager, wants to increase the foot traffic in his store. He is unsure about how to go about it, not knowing for sure how costs, price, the competition, and the location of his store will interact to influence market share. Sudheer is operating under a condition of: ambiguity. risk. uncertainty. certainty.

uncertainty. (Ambiguity means the goal to be achieved is unclear and alternatives are difficult to define. Sudheer does not have all the information he needs to make a decision, so he is operating under a condition of uncertainty. See Section 6.1: Types of Decisions and Problems.)

Creative organizations: have little ambiguity. are tightly structured. are characterized by an unusually high number of routine jobs. use teams frequently.

use teams frequently. (Creative organizations are loosely structured. People find themselves in a situation of ambiguity, assignments are vague, territories overlap, tasks are loosely defined, and much work is done by teams. See Section 8.2: Changing Things: New Products and Technologies.)

The mission of an organization describes its: competitive advantage. formal structure. blueprint that defines the organizational activities. values, aspirations, and reason for being.

values, aspirations, and reason for being. (t the top of the goal hierarchy is the mission—an organization's reason for existence. The mission describes the organization's values, aspirations, and reason for being. See Section 5.2: Goal Setting in Organizations.)

With a _____, the organization may be viewed as a central hub surrounded by a system of outside specialists, sometimes spread all over the world. divisional structure matrix structure virtual network structure functional structure

virtual network structure (The organization may be viewed as a central hub surrounded by a network of outside specialists. Rather than being housed under one roof, services such as accounting, design, manufacturing, and distribution are outsourced to separate organizations that are connected electronically to a central office. See Section 7.2: Departmentalization.)

In order to ensure that their pay rates are fair compared to other companies, HR managers may obtain _____ from a number of sources. wage and salary surveys 360-degree feedback performance appraisals job evaluations

wage and salary surveys (HR managers may obtain wage and salary surveys that show what other organizations pay incumbents in jobs that match a sample of "key" jobs selected by the organization. See Section 9.6: Maintaining an Effective Workforce.)

Which of the following is characterized by intangible outputs? Service technology Small-batch production Mass production Continuous process production

Service technology (The output of a service firm is intangible and cannot be stored in inventory. The service is either consumed immediately or lost forever. See Section 7.4: Factors Shaping Structure.)

Nicole is considered to be the top leader at her organization, which uses a matrix structure. Which of the following is true of Nicole's role in the organization? She oversees both product and functional chains of command. She reports problems that arise between the two sides of a matrix to the matrix boss. She reports to two supervisors simultaneously and must resolve conflicting demands from the matrix bosses. She is responsible for one side of the matrix.

She oversees both product and functional chains of command. (A top leader is responsible for an entire matrix. A top leader oversees both the product and functional chains of command. See Section 7.2: Departmentalization.)

Emmanuel, a manager, takes a deep interest in the personal development of his team members. Therefore, whenever a problem arises, he talks to them one on one, understands their feelings about the problem, and considers the impact of a particular decision on them. Which of the following decision styles does Emmanuel use? a. The behavioral style b. The authoritative style c. The analytical style d. The directive style

a. The behavioral style (In the given scenario, Emmanuel uses the behavioral style. The behavioral style is often the style adopted by managers having a deep concern for others as individuals. Managers using this style like to talk to people one on one, understand their feelings about the problem, and consider the effect of a given decision on them. See 6-4: Personal Decision Framework)

Reema is the manager of a high end restaurant. She likes to gather a broad amount of information, discuss the problems and potential solutions with her staff and other managers, and come up with creative ways to solve problems that keep her restaurant on the cutting edge of the food service industry. Which of the following decision styles does Reema use? a. The conceptual style b. The directive style c. The analytical style d. The behavioral style

a. The conceptual style (People who tend toward the conceptual style like to consider a broad amount of information and use information from people and systems to make decisions. See 6-4: Personal Decision Framework)

According to your text, the biggest obstacle to organizational change is _____. a. fear of personal loss b. uncertainty c. lack of trust d. lack of information

a. fear of personal loss (The fear of personal loss is perhaps the biggest obstacle to organizational change. See 8-4 Implementing Change)

Rigid, exaggerated, irrational beliefs associated with a particular group of people are called _____. a. stereotypes b. biases c. prejudice d. discrimination

a. stereotypes (Stereotypes are rigid, exaggerated, irrational beliefs associated with a particular group of people. See 9-9 Factors Shaping Personal Bias X)

The governor of a coal-producing state ordered the state Department of Environmental Protection to switch its focus from enforcing environmental regulations to helping companies comply with environmental regulations. What type of change is this best described as? a. Administrative change b. People change c. Regulatory change d. Culture change

d. Culture change (Culture change pertains to the organization as a whole and involves a major shift in the norms, values, and mind-set of the entire organization. See 8-3 Changing People and Culture)

In which stage of organizational development do people become aware of problems? a. Changing b. Refreezing c. Intervening d. Unfreezing

d. Unfreezing (Unfreezing makes people throughout the organization aware of problems and the need for change. See 8-3 Changing People and Culture)

In order to take advantages of economies of scale, Pet Toys Company uses a _____ approach to its organization structure. team-based hierarchical functional matrix

functional (Using a functional approach to group employees by common task permits economies of scale and efficient resource use. See Section 7.2: Departmentalization.)

The horizontal linkage model is best applied to a(n): customer service environment. environment that does not require speed. stable environment. high-pressure environment.

high-pressure environment. (The horizontal linkage model is increasingly important in a high-pressure business environment that requires rapidly developing and commercializing products and services. See Section 8.2: Changing Things: New Products and Technologies.)

The _____ approach helps managers determine potential problems and understand the differences in perceptions of change among employees. participation top management support negotiation coercion

participation (Participation involves users and potential resisters in designing the change; it also helps managers determine potential problems and understand the differences in perceptions of change among employees. See Section 8.4: Implementing Change.)

Which of the following advantages is provided by a divisional structure? A more flexible organization that is responsive to change Greater efficiencies and economies of scale Better coordination across divisions A unified direction from top managers

A more flexible organization that is responsive to change (By dividing employees and resources along divisional lines, an organization will be flexible and responsive to change because each unit is small and tuned in to its environment. By having employees working on a single product line, the concern for customers' needs is high. See Section 7.2: Departmentalization.)

Author and scholar Jerry Harvey coined which of the following terms to illustrate the hidden pressures for conformity that can exist in groups? Fu pan Abilene paradox Devil's advocate Groupthink

Abilene paradox (Devil's advocate is a term for the role of challenging the assumptions and assertions made by a group. Author and scholar Jerry Harvey coined the related term "Abilene paradox" to illustrate the hidden pressures for conformity that can exist in groups. See Section 6.6: Innovative Decision Making.)

Which statement about planning as a part of management is true? Planning is not useful in an uncertain future. All management activities stem from the function of planning. Planning can stabilize an unstable environment. Planning is the least important of the management functions.

All management activities stem from the function of planning. (Of the four management functions, planning, organizing, leading, and controlling, planning is considered the most fundamental. Everything else stems from planning. See Section 5.1: Goal Setting and Planning Overview.)

Under which of the following approaches do managers encourage flexibility and have freedom to innovate? Compliant Ambidextrous Cordial Rightsized

Ambidextrous (With an ambidextrous approach, managers encourage flexibility and freedom to innovate and propose new ideas with creative departments. See Section 8.1: Innovation and the Changing Workplace.)

The exploration strategy includes which of the following? A new-venture team An idea incubator An idea champion A partner

An idea incubator (The exploration strategy includes creativity, a bottom-up approach, internal contests, and idea incubators. See Section 8.2: Changing Things: New Products and Technologies.)

In strategic human resources management, which of the following would be a key factor in managing employees' talents? Terminations Forecasting Job analysis Appraisal

Appraisal (Managing talent encompasses the activities of training, development, and appraisal. See Section 9.1: The Strategic Role of HRM Is to Drive Organizational Performance.)

Sales managers at Global Glass Inc. made a budgeting blunder when they solely looked at the previous quarter's sales to estimate sales for the coming quarter. Of which of the following management biases is this an example? Perpetuating the status quo Justifying past decisions Seeing what you want to see Being influenced by initial impressions

Being influenced by initial impressions (Perpetuating the status quo occurs when managers base decisions on what has worked in the past and fail to explore new options. The sales managers at Global Glass made the mistake of being influenced by initial impressions. When considering decisions, the mind often gives disproportionate weight to the first information that it receives. See Section 6.5: Why Do Managers Make Bad Decisions?)

Overestimating one's ability to predict uncertain outcomes relates to which of the following? Justifying past decisions Perpetuating the status quo Being influenced by emotions Being overconfident

Being overconfident (Perpetuating the status quo occurs when managers base decisions on what has worked in the past and fail to explore new options. Overconfidence is when people overestimate their ability to predict uncertain outcomes. See Section 6.5: Why Do Managers Make Bad Decisions?)

When Chicago-based software firm 37Signals allowed employees a month off from their regular duties to work on new ideas, this was an example of which of the following? Trickle-down approach Top-down approach Middle-out approach Bottom-up approach

Bottom-up approach (Innovative companies use a bottom-up approach. It means encouraging the flow of ideas from lower levels and making sure they get heard and acted upon by top executives. See Section 8.2: Changing Things: New Products and Technologies.)

Doris is a new product manager at Dynamic Manufacturing. 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? Satisficing The classical model of decision making Brainstorming Bounded rationality

Bounded rationality (Brainstorming is a method of gathering as many possible solutions for solving a problem as possible. Bounded rationality means that people have limits, or boundaries, on how rational they can be. Organizations are incredibly complex, and managers have the time and ability to process only a limited amount of information with which to make decisions. See Section 6.2: Decision-Making Models.)

Which of the following has been found to be highly effective for quickly generating a wide range of alternatives? Point-counterpoint Devil's advocate Brainstorming Groupthink

Brainstorming (Groupthink is the tendency of people in groups to suppress contrary opinions. Brainstorming has been found to be highly effective for quickly generating a wide range of alternatives. See Section 6.6: Innovative Decision Making.)

Which of the following steps is NOT part of the detailed planning that goes into crisis preparation? Set up an effective communications system Create a detailed crisis management plan Build open, trusting relationships with key stakeholders Designate a crisis management team and spokesperson

Build open, trusting relationships with key stakeholders (Building open, trusting relationships with key stakeholders is part of crisis prevention rather than crisis preparation. The preparation stage includes (1) designating a crisis management team and spokesperson, (2) creating a detailed crisis management plan, and (3) setting up an effective communications system. See Section 5.5: Planning for a Turbulent Environment.)

Who, in an organization, can help the organization succeed by thinking strategically? Primarily executive managers Middle- and lower-level managers, but not executive managers CEOs and executive managers, but not middle- and lower-level managers CEOs, executive managers, middle managers, and lower-level managers

CEOs, executive managers, middle managers, and lower-level managers (For an organization to succeed, the CEO must be actively involved in making the tough choices and trade-offs that define and support strategy. However, senior executives at today's leading companies want middle- and lower-level managers to think strategically as well. See Section 5.8: Thinking Strategically.)

Which of the following would typically be produced through continuous process production? Custom clothing Nike socks Chemicals Automobiles

Chemicals (In continuous process production, the entire workflow is mechanized in a sophisticated and complex form of production technology. Examples of continuous process technologies are chemical plants, distilleries, petroleum refineries, and nuclear power plants. See Section 7.4: Factors Shaping Structure.)

Ralph is a store manager for Fred's Pharmacy. He is expected to make decisions that are in the organization's best economic interests. His decisions should be based on which of the following models? Administrative model Classical model Political model Bounded rationality model

Classical model (The administrative model is considered to be descriptive, meaning it describes how managers actually made decisions rather than how they should make decisions. The classical model of decision making is based on rational economic assumptions and manager beliefs about what ideal decision making should be. See Section 6.2: Decision-Making Models.)

Which of the following is associated with faster implementation of decisions because managers have developed consensus about which action to pursue? Coalition building Intuition Satisficing Quasirationality

Coalition building (A new trend in decision making, quasirationality, combines intuitive and analytical thought. Coalition building is associated with faster implementation of decisions because managers have developed consensus about which action to pursue. See Section 6.2: Decision-Making Models.)

When trying to overcome resistance to change, which approach is best suited when a crisis exists? Negotiation Top management support Coercion Participation

Coercion (Top management support should be used when change involves multiple departments or reallocation of resources, or users doubt the legitimacy of change. Coercion is the best tactic when a crisis exists. See Section 8.4: Implementing Change.)

_____ is a type of current problem that organizational development can help address. Diversification Conflict management Sustainable manufacturing Social justice

Conflict management (OD can help managers address at least three types of current problems: mergers/acquisition, organizational decline/revitalization, and conflict management. See Section 8.3: Changing People and Culture.)

Which of the following would NOT be listed among the characteristics of effective goals? Specific and measurable Linked to rewards Covering every detail of employee behavior Concerned with key result areas

Covering every detail of employee behavior (Goals cannot be set for every aspect of employee behavior or organizational performance; if they were, their sheer number would render them meaningless. See Section 5.3: Operational Planning.)

Which of the following would typically be produced through small-batch manufacturing? Custom clothing Nike socks Baseball gloves Automobiles

Custom clothing (Small-batch production firms produce goods in batches of one or a few products designed to customer specification. Examples of items produced through small-batch manufacturing include custom clothing, special-order machine tools, space capsules, satellites, and submarines. See Section 7.4: Factors Shaping Structure.)

Following the formulation of strategic goals, an organization's management will proceed to which of the following steps? Developing a mission statement Defining its tactical goals Defining its official goals Listing the organization's values, aspirations, and reason for being

Defining its tactical goals (After strategic goals are formulated, the next step is to define tactical goals, which are the results that major divisions and departments within an organization intend to achieve. These goals apply to middle management and describe what major subunits must do for the organization to achieve its overall goals. See Section 5.2: Goal Setting in Organizations.)

Henry's executive management team is meeting to accomplish the first step in the organizational planning process. Which of the following activities will his team engage in as part of this first step? Defining the mission and vision of the organization Selecting measures and targets Developing a strategy map Holding planning reviews

Defining the mission and vision of the organization (The planning process starts with a formal mission that defines the basic purpose of the organization. See Section 5.1: Goal Setting and Planning Overview.)

When Jullian generated solutions to a production problem, she was in which of the following stages of the decision-making process? Recognition of decision requirement Development of alternatives Diagnosis and analysis of causes Evaluation and feedback

Development of alternatives (In the diagnosis and analysis of causes step, managers analyze underlying causal factors associated with the decision situation. Jullian was in the development of alternative stage that involves generating possible alternative solutions that will respond to the needs of the situation and correct the underlying causes. See Section 6.3: Decision-Making Steps.)

"How did it occur?" is asked during which step in the decision-making process? Evaluation and feedback Development of alternatives Recognition of decision requirement Diagnosis and analysis of causes

Diagnosis and analysis of causes ("How did it occur?" is one of the possible questions to ask during the diagnosis and analysis of causes stage of the decision-making process. See Section 6.3: Decision-Making Steps.)

At which of the following steps in the decision-making process do managers analyze underlying causal factors associated with the decision situation? Evaluation and feedback Development of alternatives Recognition of decision requirement Diagnosis and analysis of causes

Diagnosis and analysis of causes (At the evaluation and feedback stage, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals. Diagnosis and analysis of causes is the step in the decision-making process in which managers analyze underlying causal factors associated with the decision situation. See Section 6.3: Decision-Making Steps.)

Which of the following statements about the increasing diversity in the workplace is true? Diversity in the workplace is increasing as the number of women workers decreases. Diversity in the workplace is increasing as the number of foreign-born workers increases. Diversity in the workplace is increasing as the number of baby boomers age 55 years and older decreases. Diversity in the workplace is increasing as the number of college dropouts increases.

Diversity in the workplace is increasing as the number of foreign-born workers increases. (Today's workplace is becoming more diverse as the number of foreign-born workers increases. Foreign-born workers make up 16 percent of the U.S. workforce and are most likely employed in service industries, such as food preparation, cleaning, and maintenance. See Section 9.7: Diversity in the Workplace.)

Which of the following has been offered as a solution to social inhibitions in problem solving? Electronic brainstorming Hard evidence Groupthink Point-counterpoint

Electronic brainstorming (Groupthink is the tendency of people in groups to suppress contrary opinions. One recent approach, electronic brainstorming, takes advantage of the group approach while overcoming the disadvantage of social inhibitions. See Section 6.6: Innovative Decision Making.)

Doctors in the Partners Health Care System incorporate the use of clinical decision support systems to limit which of the following kinds of bias? Seeing what they want to see Emotion Overconfidence Groupthink

Emotion (Seeing what they want to see happens when people look for information that supports their existing instinct or point of view and avoid information that contradicts it. To keep emotion from clouding their judgment regarding patient care, doctors in the Partners Health Care System incorporate the use of clinical decision support systems. See Section 6.6: Innovative Decision Making.)

Roger blocked and distorted negative information about the results of the new training program because he didn't want to be responsible for the bad decision. He was exercising which of the following? Devil's advocate Escalating commitment After-action review Point-counterpoint

Escalating commitment (An escalating commitment is a tendency to continue to invest time and money in a solution even when there is strong evidence that it is not appropriate. Roger is demonstrating an escalating commitment. See Section 6.6: Innovative Decision Making.)

A section of the company handbook reads as follows: "We recognize employees may come from cultures different from our own. We embrace that people are genuinely different from each other and that other value systems and behavioral norms may be a valuable resource to this company." This commitment expresses which of the following concepts? Halo effect Traditional inclusion Stereotype threat Ethnorelativism

Ethnorelativism (Ethnorelativism is the belief that groups and subcultures are inherently equal. See Section 9.9: Factors Shaping Personal Bias.)

Robert is collecting data on how well the organization has done since its new training was implemented. Which of the following stages of the managerial decision-making process is he in? Implementation of chosen alternative Development of alternatives Evaluation and feedback Selection of desired alternative

Evaluation and feedback (Development of alternatives involves generating possible alternative solutions that will respond to the needs of the situation and correct the underlying causes. Robert is in the evaluation and feedback stage in which decision makers gather information that tells them how well the decision was implemented. See Section 6.3: Decision-Making Steps.)

Which of the following advantages is provided by a matrix structure? Outsources tedious and time-consuming tasks to allow focus on higher-value work Provides the most recent version of departmentalization Facilitates horizontal coordination and information sharing Extends collaboration beyond the boundaries of an organization

Facilitates horizontal coordination and information sharing (The matrix approach combines aspects of both functional and divisional structures simultaneously, in the same part of an organization. The matrix structure evolved as a way to improve horizontal coordination and information sharing. See Section 7.2: Departmentalization.)

Kurt Lewin developed which of the following, defining change as the result of the competition between driving and restraining forces? Just-in-time inventory control Force-field analysis Organization development Change agent

Force-field analysis (Force-field analysis grew from the work of Kurt Lewin, who proposed that change was a result of the competition between driving and restraining forces. See Section 8.4: Implementing Change.)

Among the generational groups in the workforce, which has been characterized as ambitious but lacking loyalty to one organization? Silent generation Generation Y Generation X Baby boomers

Generation Y (Gen-Yers, sometimes called Millennials, are characterized as ambitious, lacking loyalty to one organization, and eager for quick success. See Section 9.7: Diversity in the Workplace.)

Which of the following would be characteristic of most service firms? Centralized Inflexible High horizontal communication Formal

High horizontal communication (Horizontal communication is high in service firms because employees must share information and resources to serve customers and solve problems. See Section 7.4: Factors Shaping Structure.)

Today's workplace is becoming more diverse. Which of the following currently represents the fastest-growing minority group? Asian Hispanic African American White

Hispanic (The number of Hispanic employees will grow the most, increasing 18.6 percent by 2020. See Section 9.7: Diversity in the Workplace.)

The manager had his team generate ideas for developing the new product line. The top idea was assigned to another group where it could be developed and refined without interference. This second group would be an example of which of the following? Innovation by acquisition Crowdsourcing Idea incubator Idea champion

Idea incubator (Crowdsourcing is an open innovation approach that taps into ideas from around the world and lets thousands of hundreds of thousands of people participate in the innovation process, usually via the Internet. An idea incubator is a mechanism that provides a safe harbor where ideas from employees throughout the company can be developed without interference from company bureaucracy or politics. See Section 8.2: Changing Things: New Products and Technologies.)

Assayers Inc. has several ongoing project teams. Because of the wide diversity among the teams, the level of conflict and diversity is affecting their productivity. Management is currently sending each team to a three-day retreat to receive training on critical thinking. Part of the training includes role playing. Which of the following benefits of workplace diversity is the focus here? Reduced costs associated with high turnover, absenteeism, and lawsuits Increased understanding of the marketplace Increased quality of team problem solving Enhanced breadth of understanding in leadership positions

Increased quality of team problem solving (Teams with diverse backgrounds bring different perspectives to a discussion that result in more creative ideas and solutions. See Section 9.8: Managing Diversity.)

Which of the following would be considered an outcome of effective management-by-objectives? Performance improvement is focused primarily at the strategic level. Efforts are focused on activities that will lead to goal setting. Individual and department goals are aligned with company goals. Operational goals are able to displace strategic goals.

Individual and department goals are aligned with company goals. (Management-by-objectives (MBO) is a system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. See Section 5.3: Operational Planning.)

Which of the following statements best describes an exit interview? Online exit questionnaires have not been particularly helpful in eliciting open and honest information. Information obtained from exit interviews can help reduce future turnover. Exit interviews provide an expensive way to learn about pockets of dissatisfaction within the organization. Exit interviews are valuable HR tools only if the departing employee leaves voluntarily.

Information obtained from exit interviews can help reduce future turnover. (The value of the exit interview is to provide an inexpensive way to learn about pockets of dissatisfaction within the organization and hence find ways to reduce future turnover. See Section 9.6: Maintaining an Effective Workforce.)

_____ is the degree to which a person adopts changes earlier than other people in a peer group. Stability Risk aversion Innovativeness Resistance

Innovativeness (Innovativeness is thought of as the degree to which a person adopts innovations earlier than other people in a peer group. Innovativeness is considered a positive characteristic for people in many companies where individuals and organizations are faced with a constant need to change. See Section 8.1: Innovation and the Changing Workplace.)

In the context of managing the implementation of a change, which of the following statements is true of coercion? It uses formal bargaining to win acceptance and approval of a desired change. It becomes necessary when other implementation techniques have failed. It is important when a change involves multiple departments. It pays off the management because users understand and become committed to the change.

It becomes necessary when other implementation techniques have failed. (Negotiation uses formal bargaining to win acceptance and approval of a desired change. Coercion means that managers use formal power to force employees to change. It may be necessary when in other implementation techniques have failed. See Section 8.4: Implementing Change.)

Which of the following statements is true of organizational change? It should be avoided in organizations that operate in competitive environments. It is spurred by political forces within the organization. It only occurs with the introduction of new products and technologies. It can meet with employee resistance.

It can meet with employee resistance. (Sometimes change and innovation are spurred by forces outside an organization, such as when a powerful customer demands annual price cuts, when a key supplier goes out of business, or when new government regulations go into effect. Other times, managers within the organization want to initiate major changes, such as forming employee-participation teams, introducing new products, or instituting new training systems. See Section 8.1: Innovation and the Changing Workplace.)

Using goals and plans as a guide to action provides which of the following benefits? It directs employee efforts toward important outcomes. It locks the organization into specific goals, plans, and time frames. It enables managers to be sure of the future in their industry. It prevents the flexibility that steers organizations off course.

It directs employee efforts toward important outcomes. (Planning focuses attention on specific targets and directs employee efforts toward important outcomes. It helps managers and other employees know what actions they need to take to achieve goals. See Section 5.4: Benefits and Limitations of Planning.)

A company is most likely to use a realistic job preview (RJP) for which of the following reasons? It offers an arrangement in which an intern, usually a high school or college student, exchanges his or her services for the opportunity to gain work experience and see whether a particular career is appealing. It trains employees in their domain before they take up live work. It systematically gathers and interprets information about the essential duties, tasks, and responsibilities of a job, as well as about the context within which the job is performed. It gives applicants all pertinent and accurate information, both positive and negative, about a job and an organization.

It gives applicants all pertinent and accurate information, both positive and negative, about a job and an organization. (A realistic job preview (RJP) gives applicants all pertinent and realistic information—positive and negative—about a job and an organization. RJPs contribute to greater employee satisfaction and lower turnover because they facilitate matching individuals, jobs, and organizations. See Section 9.4: Finding the Right People.)

Which of the following statements provides the best description of human resource management (HRM)? It involves an informal alliance among managers who support a specific goal. It includes activities undertaken to attract, develop, and maintain an effective workforce. It involves insular activities, separate from the other organizational activities. It includes only those activities that focus on improving customer relationships.

It includes activities undertaken to attract, develop, and maintain an effective workforce. (The term human resource management (HRM) refers to the design and application of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals. This includes activities undertaken to attract, develop, and maintain an effective workforce. See Section 9.1: The Strategic Role of HRM Is to Drive Organizational Performance.)

Which of the following statements best describes the focus of HRM? It proscribes the creation of informal alliances among project managers. It develops the new products and services that benefit society. It informs the selection of market penetration strategies that will maximize the economic return of an organization. It integrates an organization's strategy and goals with the correct approach to managing employees.

It integrates an organization's strategy and goals with the correct approach to managing employees. (Human resource management (HRM) is a matching process, integrating an organization's strategy and goals with the correct approach to managing human capital. HRM activities and goals do not take place inside a vacuum, but within the context of issues and factors affecting the entire organization. See Section 9.1: The Strategic Role of HRM Is to Drive Organizational Performance.)

Which of the following statements about authority is true? Authority is given to individuals, rather than being part of the position the individual holds. It is accepted by subordinates. Formal authority is the same as actual authority. Although managers may hold the same position, their levels of authority differ.

It is accepted by subordinates. (Authority is distinguished by three characteristics: Authority is vested in organizational positions, not people. Managers have authority because of the positions they hold, and other people in the same positions would have the same authority; authority flows down the vertical hierarchy. Positions at the top of the hierarchy are vested with more formal authority than are positions at the bottom; authority is accepted by subordinates. See Section 7.1: Organizing the Vertical Structure.)

Collin works at the front desk of a luxury hotel. His main assignment is to greet guests, register them for their rooms, and call for porters or other assistance the guest might request. Which of the following statements best describes the structure of Collin's organization? It benefits from mechanization and continuous production. A tight vertical structure is most appropriate for this setting. The tasks are repetitive, predictable, and continuous. It is characterized by intangible outputs and direct contact between employees and customers.

It is characterized by intangible outputs and direct contact between employees and customers. (Service technology is characterized by intangible outputs and direct contact between employees and customers. Examples of service firms include banks, hotels, and law firms. Service technologies tend to have more flexible horizontal structures. See Section 7.4: Factors Shaping Structure.)

Which of the following statements provides the best definition of accountability? It is the duty to perform the task that has been assigned. It allows managers to transfer the rights and duties of decision making and action taking to those lower in the organizational hierarchy. It is the requirement to report and justify task outcomes to those higher in the chain of command. It is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources.

It is the requirement to report and justify task outcomes to those higher in the chain of command. (Accountability means that people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. See Section 7.1: Organizing the Vertical Structure.)

Which of the following statements is true of open innovation? It means extending the search for and commercialization of new ideas beyond the boundaries of an organization. It requires businesses to generate their own ideas in-house and then develop, manufacture, market, and distribute them. It requires businesses to refrain from using the Internet as a source for generating ideas due to reliability and ownership issues. It means limiting the search for and commercialization of new ideas within the boundaries of an organization

It means extending the search for and commercialization of new ideas beyond the boundaries of an organization. (Today, forward-looking companies are trying open innovation. Open innovation means extending the search for and commercialization of new ideas beyond the boundaries of an organization and even beyond the boundaries of an industry, sharing knowledge and resources with other organizations and individuals outside a firm. See Section 8.2: Changing Things: New Products and Technologies.)

Which of the following statements would be true of a centralized organization? It can respond more quickly to rapid change and uncertainty in the environment. It makes greater use of employees' skills and abilities when compared with decentralization. Its decision authority is located near the top of an organization. It tends to relieve the burden on top managers, unlike decentralization.

Its decision authority is located near the top of an organization. (Centralization and decentralization pertain to the hierarchical level at which decisions are made. Centralization means that decision authority is located near the top of an organization. See Section 7.1: Organizing the Vertical Structure.)

_____ is the most common approach to employee compensation. Experience-based pay Competency-based pay Skill-based pay Job-based pay

Job-based pay (The most common approach to employee compensation is job-based pay. It means linking compensation to the specific tasks an employee performs. See Section 9.6: Maintaining an Effective Workforce.)

_____ result in a quicker, more competitive market response for the company. First-in, first-out systems LIFO systems Mass customization systems Just-in-time inventory systems

Just-in-time inventory systems (One of the benefits of JIT is a quicker, more competitive market response for the company. See Section 8.4: Implementing Change.)

Connie continued spending money to improve the new product line even though sales were slow because of a lack of demand. Of which of the following management biases is this an example? Justifying past decisions Being influenced by initial impressions Seeing what you want to see Perpetuating the status quo

Justifying past decisions (Being influenced by initial impressions occurs when the mind gives disproportionate weight to the first information that it receives. Connie made the mistake of justifying past decisions. Managers often stick with a decision because they've invested a lot of resources in it, even though they'd be better off cutting their losses and moving on. See Section 6.5: Why Do Managers Make Bad Decisions?)

Which of the following is true of managers? Managers are frequently involved in making decisions amid ever-changing factors. Managers should wait to make decisions until they have all the information necessary. Managers are never confronted with unclear information. Managers refrain from making decisions when they are faced with conflicting points of view.

Managers are frequently involved in making decisions amid ever-changing factors. (In a perfect world, managers would have all the information necessary for making decisions. In reality, however, some things are unknowable. Managers frequently must make decisions amid ever-changing factors, unclear information, and conflicting points of view. See Section 6.1: Types of Decisions and Problems.)

Which group within the organization has the responsibility for the implementation of tactical goals? Senior management Middle management Lower management All levels of management

Middle management (Tactical goals and plans are the responsibility of middle managers, such as the heads of major divisions or functional units. See Section 5.1: Goal Setting and Planning Overview.)

The cooperation strategy includes which of the following? Idea champions Creativity Internal contests Open innovation

Open innovation (The cooperation strategy includes a horizontal coordination mechanism, customers, partners, and open innovation. See Section 8.2: Changing Things: New Products and Technologies.)

Before implementing new changes in the production flow, Betty's Baskets works with the production team to smooth the transition to the new system. Which of the following approaches to change is this company using? Coercion Participation Top management support Education

Participation (Education is used when the change is technical or users need accurate information and analysis to understand the change. Participation involves users and potential resisters in designing the change. See Section 8.4: Implementing Change.)

Darren has been hired into the human resources department of a large corporation. Part of his responsibilities include overseeing a key development activity in human resource management (HRM). Darren is concerned with which of the following activities? Talent acquisition Selection External recruitment Performance appraisal

Performance appraisal (Following selection, the next goal of human resource management (HRM) is to develop employees into an effective workforce. Key development activities include training and performance appraisal. See Section 9.5: Developing Talent.)

Plans and goals benefit organizations in a number of ways. Which of the following would NOT be considered among those benefits? Plans and goals offer legitimacy and a reason for existence. Plans and goals set a standard of performance. Plans and goals provide a source of motivation and commitment. Plans and goals create rigidity in a turbulent environment.

Plans and goals create rigidity in a turbulent environment. (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 set a standard of performance. See Section 5.4: Benefits and Limitations of Planning.)

When a decision-making group is divided into two subgroups and assigned different, often competing, responsibilities, this is an example of which of the following? Point-counterpoint Devil's advocate Satisficing Escalating commitment

Point-counterpoint (Point-counterpoint breaks a decision-making group into two subgroups and assigns them different, often competing, responsibilities. See Section 6.6: Innovative Decision Making.)

What are the two stages of crisis management? Detection and designation Preparation and prevention Contingency and scenario building Managing and communicating

Preparation and prevention (Many 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 if managers aren't prepared with a quick and appropriate response. Crisis planning involves the two major stages of prevention and preparation. See Section 5.5: Planning for a Turbulent Environment.)

Which of the following is a restraining force under force-field analysis? Adequately skilled employees Abundant resources Inventory cost savings Resistance from middle managers

Resistance from middle managers (Restraining forces are the various barriers to change, such as a lack of resources, resistance from middle managers, or inadequate employee skills. See Section 8.4: Implementing Change.)

_____ would be considered a negative characteristic for people in many companies, where individuals and organizations are faced with a constant need to change. Stability Risk aversion Innovativeness Creativity

Risk aversion (Innovativeness is thought of as the degree to which a person adopts innovations earlier than other people in a peer group. Risk aversion is considered a negative characteristic for people in many companies where individuals and organizations are faced with a constant need to change. See Section 8.1: Innovation and the Changing Workplace.)

Distill Manufacturing has clearly defined lines of authority. Dudley is a front-line manager. Each of the six employees Dudley supervises knows that he or she has authority and responsibility for a distinct set of tasks. Dudley reports to his supervisor who is the next step in successive management levels all the way to the top. Distill Manufacturing follows which of the following principles? Scalar Responsibility Authority Specialization

Scalar (The scalar principle refers to a clearly defined line of authority in the organization that includes all employees. Authority and responsibility for different tasks should be distinct. All individuals in the organization should know to whom they report, as well as the successive management levels all the way to the top. See Section 7.1: Organizing the Vertical Structure.)

Toni has a high risk propensity and decided to go with a high-risk alternative to reach her company's growth goals. She is in which of the following stages of the decision-making process? Recognition of decision requirement Selection of desired alternative Diagnosis and analysis of causes Evaluation and feedback

Selection of desired alternative (During evaluation and feedback, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals. Toni is in the selection of the desired alternative stage, in which managers try to select the most promising of several alternative courses of action. See Section 6.3: Decision-Making Steps.)

_____ engage employees in problem solving based on the collected data. Large-group interventions Survey-feedback activities Team-building activities Reverse innovation strategies

Survey-feedback activities (Large-group intervention is an OD approach that brings together people from different parts of the organization to discuss problems and opportunities and plan for change. Survey feedback begins with a questionnaire and employees are engaged in problem solving based on the data. See Section 8.3: Changing People and Culture.)

To achieve competitive advantage, companies develop strategies that incorporate which of the following elements? Target customers Establish a mission Engage in scenario building Set wage and benefit standards

Target customers (To achieve competitive advantage, companies develop strategies that target specific customers, focus on core competencies, provide synergy, and create value. See Section 5.9: What Is Strategic Management?)

A functional structure would be most appropriate in which of the following circumstances? Innovation and mechanistic environment Stability and organic environment Differentiation and organic environment Task specialization and mechanistic environment

Task specialization and mechanistic environment (The pure functional structure is appropriate for achieving internal efficiency goals in a stable environment. The vertical functional structure uses task specialization and a strict chain of command. Goals of efficiency and a stable environment are associated with a mechanistic system. See Section 7.4: Factors Shaping Structure.)

In the BCG matrix, in which of the following categories should profits be milked to invest in other, riskier businesses? The cash cow The question mark The star The dog

The cash cow (In the BCG matrix, the cash cow is a dominant business in the industry, with a large market share and earning cash flow that can be milked to invest in other, riskier businesses. See Section 5.10: Formulating Corporate-Level Strategy.)

_____ is an invisible barrier that separates women and minorities from senior management positions. Pluralism The glass ceiling The queen bee syndrome The opt-out trend

The glass ceiling (The glass ceiling is an invisible barrier that exists for women and minorities that limits their upward mobility in organizations. See Section 9.10 Factors Affecting Women's Careers.)

The managers at Table Foods are examining the level of diversity within their company. Which of the following statements would indicate that Table Foods is an inclusively diverse company? The results of several employee satisfaction surveys show that employees feel accepted as members of the team and that their unique talents are appreciated. The level of conflicts, anxiety, and misunderstandings has decreased to nearly zero. Employees represent a range of ages, races, and genders. Company policy is that the dimensions included in the traditional model provide the formal guide for all actions to increase workforce diversity.

The results of several employee satisfaction surveys show that employees feel accepted as members of the team and that their unique talents are appreciated. (Inclusion is the degree to which an employee feels like an esteemed member of a group in which his or her uniqueness is highly appreciated. See Section 9.8: Managing Diversity.)

Which of the following statements is true of creative organizations? Their employees are assigned to a limited range of projects. They embrace risks and experimentation. They are highly structured with well-defined tasks. Their employees often work as individual contributors rather than in teams.

They embrace risks and experimentation. (Managers in creative companies embrace risk and experimentation. They involve employees in a varied range of projects, so that people are not stuck in the rhythm of routine jobs, and they drive out the fear of making mistakes that can inhibit creative thinking. See Section 8.2: Changing Things: New Products and Technologies.)

In the creative department at Newcomb Advertising, the employees do work that is low in task specialization. Which of the following is most likely true about these employees? They engage in a variety of tasks and activities. They seldom find their work challenging. They often find their work boring. They usually perform a single task.

They engage in a variety of tasks and activities. (With too much specialization, employees are isolated and do only a single, boring job. Many companies are implementing teams and other mechanisms that enhance coordination and provide greater challenge for employees. See Section 7.1: Organizing the Vertical Structure.)

At the start of each sales cycle, sales managers at Johnson's Cameras announce big changes intended to increase sales. They usually do not follow through on these changes. Which of the following is causing this lack of enthusiasm? Competitors A lack of trust Disagreements about the benefits Self-interests

A lack of trust (Management's apparent inability to follow through has generated a lack of trust. See Section 8.1: Innovation and the Changing Workplace.)

According to a McKinsey Quarterly survey, among executives whose companies had no formal strategic planning process, _____ said they were dissatisfied with the company's development strategy. 24 percent 51 percent 39 percent 87 percent

51 percent (Of responding executives whose companies had no formal strategic planning process, 51 percent said that they were dissatisfied with the company's development strategy, compared to only 20 percent of those companies that had a formal planning process. See Section 5.8: Thinking Strategically.)

Traditional views of organizational design recommend a span of management of about _____ subordinates per manager. 7 to 10 30 to 40 15 to 20 4 to 5

7 to 10 (The span of control, a characteristic of structure, determines how closely a supervisor can monitor subordinates. Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager. See Section 7.1: Organizing the Vertical Structure.)

Which of the following is a barrier to JIT? A facility layout that emphasizes new deliveries over inventory maintenance Worker skills that are geared toward rapid inventory deployment Union resistance to retraining A freight system that is too slow to deliver inventory on time

A freight system that is too slow to deliver inventory on time (A freight system that is too slow to deliver inventory on time is one of the four barriers listed for establishing JIT. See Section 8.4: Implementing Change.)

What is the difference between a job analysis and a job description? A job analysis involves recruiting newcomers from outside the organization, whereas in a job description the organization and the individual attempt to match each other's needs, interests, and values. A job analysis is a systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job, whereas a written job description is a clear and concise summary of the specific tasks, duties, and responsibilities. A job analysis is a clear and concise summary of the specific tasks, duties, and responsibilities, whereas a written job description outlines the knowledge, skills, education, physical abilities, and other characteristics needed to perform the job adequately. A job analysis give applicants all pertinent and realistic information about the job and the organization, whereas a written job description outlines the knowledge, skills, education, physical abilities, and other characteristics needed to perform the job adequately.

A job analysis is a systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job, whereas a written job description is a clear and concise summary of the specific tasks, duties, and responsibilities. (A job analysis is the systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job. Managers prepare a job description for each open position, which is a concise summary of the specific tasks and responsibilities of that job. See Section 9.4: Finding the Right People.)

Which of the following would be an example of high-level relational coordination? The head of accounting meets with mid-level managers to review monthly budgets. The CEO meets with an employee who wants to form a union among the production workers. The head of maintenance and the line supervisors have a contentious meeting about a rash of equipment breakdowns. A liaison from the sales department and the design department meet frequently to review products in development and discuss ideas received from customers.

A liaison from the sales department and the design department meet frequently to review products in development and discuss ideas received from customers. (In an organization with a high level of relational coordination, people share information freely across departmental boundaries, and people interact on a continuous basis to share knowledge and solve problems. See Section 7.3: Organizing for Horizontal Coordination.)

Norman works in the accounting department at his company. He reports to the vice president of finance. He is also the primary numbers person in the garden products division of the company which is managed by the division manager. In which of the following types of organization structure does Norman work? A team approach A multidivisional approach A matrix approach A virtual network approach

A matrix approach (The matrix approach combines aspects of both functional and divisional structures simultaneously, in the same part of an organization. One unique feature of the matrix is that it has dual lines of authority. See Section 7.2: Departmentalization.)

_____ is separate from the rest of the organization and is responsible for developing and initiating a major innovation. A new-venture team The champion An inventor A sponsor

A new-venture team (A new-venture team is a unit separate from the rest of the organization that is responsible for developing and initiating a major innovation. See Section 8.2: Changing Things: New Products and Technologies.)

Which of the following advantages is provided by a functional structure? A more flexible organization that is responsive to change Better communication across functions Better coordination across functional departments A unified direction from top managers

A unified direction from top managers (Functionally based departments enhance the development of in-depth skills because people work on a variety of related problems and are associated with other experts within their own department. Because the chain of command converges at the top, the functional structure also offers a way to centralize decision making and provides unified direction from top managers. See Section 7.2: Departmentalization.)

Which of the following statements best describes the purpose of an organizational mission? A mission provides data about the world used to come to a unique conclusion about the best course of organizational action. A well-defined mission is the basis for development of all subsequent goals and plans. A mission is the result of an organization's goals. A mission specifies the actions necessary for accomplishing an organizational goal.

A well-defined mission is the basis for development of all subsequent goals and plans. (At the top of the goal hierarchy is the mission—an organization's reason for existence. The mission describes the organization's values, aspirations, and reason for being. See Section 5.2: Goal Setting in Organizations.)

Which of the following would be a nonprogrammed decision as part of strategic planning? Hire a new manager Update a manufacturing process Reorder supplies Acquire a new company

Acquire a new company (Decisions to develop a new product or service, acquire a company, build a new factory, enter a new geographical market, or relocate headquarters to another city are all nonprogrammed decisions. See Section 6.1: Types of Decisions and Problems.)

Carson's company follows a strategic approach to human resource management (HRM). Which of the following statements would be true of the company? HRM is not specifically involved in successful company performance. Buildings and machinery give the company its competitive edge. HRM is independent of the other functions in an organization. All managers are involved in human resource activities.

All managers are involved in human resource activities. (All managers are involved in managing human resources. In human resource management (HRM), employees are viewed as assets. See Section 9.1: The Strategic Role of HRM Is to Drive Organizational Performance.)

Lower-performing traders in London investment banks were less effective in managing and modulating their emotional responses, which resulted in lower performance. This was a consequence of which of the following biases? Perpetuating the status quo Justifying past decisions Being influenced by emotions Overconfidence

Being influenced by emotions (Perpetuating the status quo occurs when managers base decisions on what has worked in the past and fail to explore new options. The traders were being influenced by emotions. Effective regulation of emotions was a characteristic of higher-performing traders. See Section 6.5: Why Do Managers Make Bad Decisions?)

Michelle was certain that low employee turnover was a key driver of customer satisfaction and store profitability so she decided to invest in programs to keep employees happy, but profits continued to lag. She was experiencing which of the following kinds of bias? Being overconfident Perpetuating the status quo Being influenced by emotions Justifying past decisions

Being overconfident (Perpetuating the status quo occurs when managers base decisions on what has worked in the past and fail to explore new options. Overconfidence is when people overestimate their ability to predict uncertain outcomes, as Michelle did in making this decision. See Section 6.5: Why Do Managers Make Bad Decisions?)

Which of the following innovations would be classified as a disruptive innovation? Programmable stoves Velcro on shoes Light bulb Cameras on smartphones

Cameras on smartphones (Disruptive innovation refers to innovations in products or services that typically start small and end up completely replacing an existing product or service technology for producers and consumers. Digital cameras disrupted the traditional need for film, and high-quality cameras on smartphones disrupt the need for a separate camera. See Section 8.1: Innovation and the Changing Workplace.)

Which of the following would NOT be included among the advantages of a virtual network structure? Centralized control of organization activities Reduced administrative overhead Workforce flexibility/challenge Global competitiveness

Centralized control of organization activities (One of the major disadvantages is lack of hands-on control. Managers do not have all operations under one roof and must rely on contracts, coordination, negotiation, and electronic linkages to hold things together. See Section 7.2: Departmentalization.)

Possible compensatory and punitive damages plus traditional back pay for cases of intentional discrimination brought under Title VII of the 1964 Civil Rights Act are provisions of the: Civil Rights Act of 1991. Family and Medical Leave Act. Patient Protection and Affordable Care Act. Occupational Safety and Health Act.

Civil Rights Act of 1991. (The Civil Rights Act of 1991 provides for possible compensatory and punitive damages plus traditional back pay for cases of intentional discrimination brought under Title VII of the 1964 Civil Rights Act. It shifts the burden of proof to the employer. See Section 9.2: The Impact of Federal Legislation on HRM.)

Knowing criteria for evaluating alternatives is an assumption of which of the following? Bounded rationality Satisficing Administrative model Classical model

Classical model (Bounded rationality means that people have limits, or boundaries, on how rational they can be. One of the four assumptions for the classical model is that criteria for evaluating alternatives are known. See Section 6.2: Decision-Making Models.)

Rick's Roadhouse is making some changes to make the restaurant more family friendly and shed its dive bar reputation before it is shut down under new city ordinances. As restaurant manager, Sam tells the staff that they can accept it or leave. Which of the following approaches to change implementation is Sam using? Participation Top management support Negotiation Coercion

Coercion (Negotiation uses formal bargaining to win acceptance and approval of a desired change. Sam is using coercion to force employees to change. See Section 8.4: Implementing Change.)

Which of the following implementation tactics is most likely to be used when a change is technical? Communication and education Participation Negotiation Coercion

Communication and education (Coercion should be used when a crisis exists, initiators clearly have power, or other implementation techniques have failed. Communication and education are used when solid information about a change is needed by users and others who may resist implementation. Within organizations, education can be especially important when the change involves new technical knowledge or users are unfamiliar with the idea. See Section 8.4: Implementing Change.)

At a meeting of the strategic planning team, Felicity announced that she wanted to discuss the possibility of reengineering. Which of the following would be a main feature of this approach? Company structure would shift away from being strongly vertical and toward emphasizing stronger horizontal coordination. The number of senior executives in traditional support functions such as finance and human resources would be increased. The number of levels in the vertical hierarchy would increase. The structure would focus on function rather than horizontal workflows.

Company structure would shift away from being strongly vertical and toward emphasizing stronger horizontal coordination. (Reengineering refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Because the focus of reengineering is on horizontal workflows rather than function, reengineering generally leads to a shift away from a strong vertical structure to one emphasizing stronger horizontal coordination. See Section 7.3: Organizing for Horizontal Coordination.)

For the video recording industry, the advent of streaming technology can best be described as which of the following types of innovation? Restructuring innovation Productive innovation Disruptive innovation Service innovation

Disruptive innovation (Disruptive innovation refers to innovations in products or services that typically start small and end up completely replacing an existing product or service technology for producers and consumers. DVDs all but wiped out the videotape industry, for example, and now streaming video is threatening DVDs with the same fate. See Section 8.1: Innovation and the Changing Workplace.)

Which of the following statements best defines high-level relational coordination? Coordination is carried out through formal coordination roles or mechanisms. Coordination is a structural device managed by a project manager. Coordination is carried out by managers in a functional hierarchy. Coordination is carried out through a web of ongoing positive relationships.

Coordination is carried out through a web of ongoing positive relationships. (In organizations with a high level of relational coordination, coordination is carried out through a web of ongoing positive relationships rather than because of formal coordination roles or mechanisms. See Section 7.3: Organizing for Horizontal Coordination.)

_____ include the steps for dealing with various types of crises such as natural disasters; normal accidents like economic crises, industrial accidents, or product and service failures; and abnormal events such as product tampering or acts of terrorism. Scenario building reports Contingency plans Crisis management plans Crisis preparation plans

Crisis management plans (The crisis management plan (CMP) is a detailed, written plan that specifies the steps to be taken, and by whom, if a crisis occurs. The CMP should include the steps for dealing with various types of crises. A CMP should be a living, changing document that is regularly reviewed, practiced, and updated as needed. See Section 5.5: Planning for a Turbulent Environment.)

_____ is being used to gather creative ideas for solving social problems. Reverse engineering Reverse innovation Insourcing Crowdsourcing

Crowdsourcing (Crowdsourcing allows organizations to tap into ideas from around the world and lets thousands or hundreds of thousands of people participate in the innovation process, usually via the Internet. It is also being used to gather creative ideas for solving social problems. See Section 8.2: Changing Things: New Products and Technologies.)

At the Supper Inn Restaurants headquarters, executive management has hired a planning consultant to work with division managers in developing their own goals and plans. Which approach is Supper Inn Restaurants using for the planning function? Management-by-objectives Centralized planning committee Decentralized planning Total quality management

Decentralized planning (It is using a shift to decentralized planning, which means that planning experts work with managers in major divisions or departments to develop their own goals and plans. See Section 5.6: Innovative Approaches to Planning.)

Which of the following do some experts recommend using to combat groupthink and push team members to practice new behaviors rather than revert to the default behavior of suppressing opinions? Point-counterpoint Escalating commitment Devil's advocate Decision coach

Decision coach (A devil's advocate has the role of challenging the assumptions and assertions made by a group. Because groupthink is such a natural and pervasive challenge to group decision making, some experts recommend using an expert decision coach to combat it. See Section 6.6: Innovative Decision Making.)

The innovation roles strategy includes which of the following? Idea champions Open innovation Internal contests Creativity

Idea champions (The exploration strategy includes internal contests. The innovation roles strategy includes idea champions, new venture teams, skunkworks, and new venture funds. See Section 8.2: Changing Things: New Products and Technologies.)

Which of the following examples describes a manager handling diversity well? A senior worker discarded employment applications, explaining that he could tell by the job seekers' names that they were black. A manager gives employees a personality test and uses the results to create several teams in which the members are most like each other. Department managers initiate a company-wide program to support the progression of women into upper management positions. A manager allows women to choose whether they want to work in administration or on the production line, while all men are assigned to the production line.

Department managers initiate a company-wide program to support the progression of women into upper management positions. (Managers across the globe wrestle with many of the same diversity challenges as U.S. managers, especially concerning the progression of women into upper management positions. Managers who cultivate a diversified workforce have been shown to improve their organization's chances of success. See Section 9.7: Diversity in the Workplace.)

The administrative model is considered which of the following? Bounded Rational Normative Descriptive

Descriptive (Bounded rationality means people have the time and cognitive ability to process only a limited amount of information on which to base decisions. The administrative model is considered to be descriptive, meaning it describes how managers actually made decisions rather than how they should make decisions. See Section 6.2: Decision-Making Models.)

Amanda is on the executive team that manages one of Canada's wind farms. The team is in the process of developing a crisis plan in the event that the company has an accident or natural disaster. Which of the following should Amanda's team include in its preparation for such a crisis? Foster relationships with other wind farms Survey employees about their ideas for disaster response Monitor signals from the natural environment Designate a crisis management team to mobilize should a crisis occur

Designate a crisis management team to mobilize should a crisis occur (The three steps in the preparation stage are (1) designating a crisis management team and spokesperson, (2) creating a detailed crisis management plan, and (3) setting up an effective communications system. The crisis management team, for example, is a cross-functional group of people who are designated to swing into action if a crisis occurs. See Section 5.5: Planning for a Turbulent Environment.)

Sylvia has contracted for an evaluation of the new training course intended to reduce errors in the production process. She is at which of the following stages of the decision-making process? Recognition of decision requirement Evaluation and feedback Diagnosis and analysis of causes Implementation of chosen alternative

Diagnosis and analysis of causes (Evaluation and feedback is the sixth step in the decision-making process; at this stage, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals. Sylvia is in step 2, diagnosis and analysis of causes; in this step, managers analyze underlying causal factors associated with the decision situation. See Section 6.3: Decision-Making Steps.)

Asking about the interconnectedness of events is part of which of the following steps of the decision-making process? Evaluation and feedback Development of alternatives Recognition of decision requirement Diagnosis and analysis of causes

Diagnosis and analysis of causes (This is a question for the diagnosis and analysis of causes step. See Section 6.3: Decision-Making Steps.)

Which of the following characteristics would be considered a traditional dimension of diversity? Disability Language Nationality Income

Disability (The dimensions of diversity in the traditional model include inborn differences that are immediately observable and include race, gender, age, and physical ability. See Section 9.8: Managing Diversity.)

Which of the following statements best defines the difference between discrimination and affirmative action? Discrimination is the hiring or promoting of applicants based on criteria that are not job-relevant; affirmative action is taking positive steps to guarantee equal employment opportunities. Discrimination allows managers to make choices in hiring decisions; affirmative action is the prescribed qualifications an applicant must have before being hired. Discrimination allows those not qualified to be hired; affirmative action mandates only qualified employees are hired. Discrimination prevents the hiring of applicants of a different race from the employer; affirmative action prosecutes employers who do not hire applicants of a different race.

Discrimination is the hiring or promoting of applicants based on criteria that are not job-relevant; affirmative action is taking positive steps to guarantee equal employment opportunities. (Discrimination is the hiring or promoting of applicants based on criteria that are not job-relevant. Affirmative action is a policy requiring employers to take positive steps to guarantee equal employment opportunities for people within protected groups. See Section 9.2: The Impact of Federal Legislation on HRM.)

Olivia is a copy editor for a large organization's marketing department. Her department is putting together a marketing campaign for the company's newest version of high-efficiency refrigerator. Part of the campaign emphasizes the product in the kitchen of the future. In another department, the marketing team is putting together the campaign for the newest radiant oven. If these two campaigns could be coordinated, it would be beneficial, but the two departments are disagreeing over the best direction for the marketing. Which of the following types of organization structure does Olivia's company use? Functional Virtual network Team-based Divisional

Divisional (In a divisional approach, coordination across divisions is often poor. Problems can occur when autonomous divisions go in opposite directions. See Section 7.2: Departmentalization.)

The following questions might appear on a job application. Which one is considered appropriate to ask on such an application? Do you have a legal right to work in the United States? Have you ever been arrested for a crime? When did you graduate from high school? What is your age?

Do you have a legal right to work in the United States? (Asking an applicant's actual age or whether they have been arrested (not whether they have been convicted) is contrary to EEO guidelines. It is appropriate to ask whether an applicant has a legal status to work. See Section 9.4: Finding the Right People.)

Why does the flexible nature of the ambidextrous approach make it difficult to implement? It challenges the creative impulse. Managers feel their authority is threatened. Managers tend to be too rigid in their thinking. Employees are less likely to complete.

Employees are less likely to complete. (With an ambidextrous approach, managers might have a good idea, but have trouble getting employees to implement it. See Section 8.1: Innovation and the Changing Workplace.)

Which of the following statements about trends in organization structure is true? Many companies are moving away from horizontal structures based on work processes rather than departmental functions. Every organization needs mechanisms for horizontal integration and coordination. In general, the usefulness of work "silos" containing functional departments is becoming more evident. Managers recognize that traditional vertical organization structures are most effective in a fast-shifting environment.

Every organization needs mechanisms for horizontal integration and coordination. (In general, the trend is toward breaking down barriers between departments, and many companies are moving toward horizontal structures based on work processes rather than departmental functions. Regardless of the type of structure, every organization needs mechanisms for horizontal integration and coordination. See Section 7.3: Organizing for Horizontal Coordination.)

Which of the following is an example of an external force that spurs organizational change? Instituting new training systems Exit of key suppliers Managers wanting to institute a major change Introduction of new products

Exit of key suppliers (Sometimes change and innovation are spurred by forces outside an organization, such as when a powerful customer demands annual price cuts, when a key supplier goes out of business, or when new government regulations go into effect. Other times, managers within the company want to initiate major changes, such as forming employee-participation teams, introducing new products, or instituting new training systems. See Section 8.1: Innovation and the Changing Workplace.)

Which of the following statements about organizational planning is true? The highest level is the mission statement, with a focus on outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals. Front-line managers and supervisors develop operational plans that focus on specific tasks and processes and that help meet tactical and strategic goals. A division manager will formulate strategic plans that focus on the major actions that the individual employees must take to fulfill their part in the strategic plan set by top management. Operational plans are the basis for the strategic level of goals and plans, which in turn shape the tactical level objectives.

Front-line managers and supervisors develop operational plans that focus on specific tasks and processes and that help meet tactical and strategic goals. (Operational plans identify the specific procedures or processes needed at lower levels of the organization, such as individual departments and employees. See Section 5.1: Goal Setting and Planning Overview.)

Caleb works for the R&D department of a large company. When an issue arises in this department, they must wait for the president to make a final decision. What approach to organization structure does Caleb's company use? Functional Virtual network Team-based Divisional

Functional (Large, functionally based departments enhance the development of in-depth skills because people work on a variety of related problems and are associated with other experts within their own department. Because the chain of command converges at the top, the functional structure also offers a way to centralize decision making and provide unified direction from top managers. See Section 7.2: Departmentalization.)

A national ice cream manufacturer has found that customers on the East Coast prefer a slightly different taste and texture to their ice cream than customers on the West Coast. It has facilities on each coast with slightly different names to produce the distinct types of ice cream preferred there. Which of the following approaches does it use in its organization structure? Customer-based functional Geographic-based divisional Team-based Virtual network

Geographic-based divisional (The divisional structure occurs when departments are grouped together based on similar organizational outputs. An alternative for assigning divisional responsibility is to group company activities by geographic region or customer group. See Section 7.2: Departmentalization.)

Which of the following would NOT be considered part of an employee's compensation? Income taxes Paid vacation Health insurance Wages

Income taxes (The term compensation refers to all monetary payments and all goods or commodities used in lieu of money to reward employees. See Section 9.6: Maintaining an Effective Workforce.)

After taking over for her grandfather, Tara is trying to introduce a more strategic planning process to her traditional but growing florist and nursery company. In her presentation to the rest of the managers, she cites all but which of the following as the benefits of a planning and goal-setting process? Goals and plans provide a source of motivation and commitment. Goals and plans set a standard of performance. Goals and plans can create a false sense of certainty. Goals and plans guide resource allocation.

Goals and plans can create a false sense of certainty. (Planning is more often than not beneficial when it comes to resource allocation, setting performance standards, and clarifying goals and boosting motivation. All planning is based on assumptions, and managers can't know what the future holds for their industry or for their competitors, suppliers, and customers. See Section 5.4: Benefits and Limitations of Planning.)

Which of the following would be considered one of the limitations of planning and setting goals? Goals and plans can get in the way of intuition and creativity. Goals and plans are the only way to navigate a turbulent environment. Goals and plans can reduce the risk of a false sense of certainty. Goals and plans set a standard of performance.

Goals and plans can get in the way of intuition and creativity. (Some researchers think planning can hurt organizational performance in some ways. Thus, managers should understand the limitations to planning, including the ways it can get in the way of intuition and creativity. See Section 5.4: Benefits and Limitations of Planning.)

Capstone Manufacturing has proposed some major structural changes within its organization. Some of the employees fear that the changes will lead to downsizing and wage reductions. They begin voicing resistance to the changes. Which of the following barriers to change are they exhibiting? Goals and rewards Self-interests Disagreements about the benefits Uncertainty

Goals and rewards (People who are affected by a change or innovation may assess the situation differently from the managers or promoters. See Section 8.1: Innovation and the Changing Workplace.)

Werner has been hired as a project manager at a construction company. Which of the following statements is most likely true about Werner? He is responsible for coordinating several departments to achieve desired project outcomes. He will ensure outcomes but will have no input on setting budget goals, marketing targets, and strategies. His position is not included on the organization chart. He is a member of one of the departments begin coordinated.

He is responsible for coordinating several departments to achieve desired project outcomes. (A project manager is a person who is responsible for coordinating the activities of several departments for the completion of a specific project. See Section 7.3: Organizing for Horizontal Coordination.)

Which of the following is a most urgent concern for today's organizations? Decreasing diversity among staff Hiring and keeping quality employees Ensuring political correctness within the workplace Crafting generous employee benefit packages

Hiring and keeping quality employees (Employees are viewed as assets. No strategy can be implemented effectively without the right people to put it into action. See Section 9.1: The Strategic Role of HRM Is to Drive Organizational Performance.)

Workplace diversity can benefit the organization in a number of ways. Which of the following would NOT be considered a dividend of workplace diversity? Better use of employee talent Homogenous teams with cohesive cultural norms Increased understanding of the marketplace Increased quality of team problem solving

Homogenous teams with cohesive cultural norms (Heterogeneous teams and organizations, made up of individuals with different backgrounds and skill sets, increase the chances of getting a diversity of perspective, which provides a broader and deeper base of ideas, opinions, and experiences for problem solving, creativity, and innovation. See Section 9.8: Managing Diversity.)

As a job selection device, _____ have been found to be the most consistent predictor of good performance across a variety of jobs job analyses IQ tests applications interviews

IQ tests (IQ tests have been found to be the most consistent predictor of good performance across a variety of jobs because a high IQ shows a candidate's ability to learn. See Section 9.4: Finding the Right People.)

Which of the following is NOT a common criticism of group brainstorming? Some members may be concerned about pleasing the boss or impressing colleagues. A group can be too easily influenced by the emotions of the leader. People typically come up with more ideas individually than in a group setting. Ideas generated during brainstorming are generally narrow in scope.

Ideas generated during brainstorming are generally narrow in scope. (Brainstorming has been found to be highly effective for quickly generating a wide range of alternatives. See Section 6.6: Innovative Decision Making.)

What is a major part of decision making? Removing ambiguity Accomplishing a goal Earning a profit Identifying problems

Identifying problems (Decision making is the process of identifying problems and opportunities and then resolving them. See Section 6.1: Types of Decisions and Problems.)

Which of the following would NOT be included among the five approaches to structural design? Ideological Matrix Divisional Functional

Ideological (Five approaches to structural design reflect different uses of the chain of command in departmentalization: functional, divisional, matrix, team-based, and virtual network. See Section 7.2: Departmentalization.)

Which of the following involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out? Diagnosis Evaluation Opportunity Implementation

Implementation (Diagnosis involves managers analyzing underlying causal factors associated with the decision situation. Implementation involves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action. See Section 6.3: Decision-Making Steps.)

Joyce was using discussion, trust building, and active engagement with people affected by the decision. She is in which of the following stages of the decision-making process? Implementation of chosen alternative Evaluation and feedback Diagnosis and analysis of causes Recognition of decision requirement

Implementation of chosen alternative (Joyce is in the implementation stage. Successful implementation of the chosen alternative may require discussion, trust building, and active engagement with people affected by the decision. See Section 6.3: Decision-Making Steps.)

Which of the following statements best describes the difference between a divisional structure and a functional structure? A functional structure operates best with decentralization, and a divisional structure benefits from centralization. In a functional structure, people are grouped by common skills and resources; whereas in a divisional structure, departments are grouped together based on similar organizational outputs. A functional structure uses a strong horizontal design, and a divisional structure uses a strong vertical design. In functional structures, workers communicate primarily with others in a different department to coordinate work; in divisional structures, workers communicate primarily with people in the same department to coordinate work.

In a functional structure, people are grouped by common skills and resources; whereas in a divisional structure, departments are grouped together based on similar organizational outputs. (In contrast to the functional approach, in which people are grouped by common skills and resources, the divisional structure occurs when departments are grouped together based on similar organizational outputs. The primary difference between divisional and functional structures is that in a divisional structure, the chain of command from each function converges lower in the hierarchy. See Section 7.2: Departmentalization.)

Which of the following is an assumption of the political model? Criteria for evaluating alternatives are known. The decision maker is rational and uses logic. Managers' searches for alternatives are limited because of human, information, and resource constraints. Information is ambiguous and incomplete.

Information is ambiguous and incomplete. (An assumption of the administrative model is that managers' searches for alternatives are limited because of human, information, and resource constraints. That information is ambiguous and incomplete is an assumption of the political model. See Section 6.2: Decision-Making Models.)

In an organization implementing the horizontal linkage model, which of the following tasks is performed by people in the manufacturing department? Recruiting people to develop new ideas for improving production speed and quality Informing other departments whether a product idea can be manufactured within cost limits Passing customer complaints to the research department to use in the design of new products Exploring new technical developments to learn whether they will be useful to customers

Informing other departments whether a product idea can be manufactured within cost limits (In the horizontal linkage model, the research, manufacturing, sales, and marketing departments within an organization simultaneously contribute to new products and technologies. Marketing people pass customer complaints to the research department to use in the design of new products and manufacturing informs other departments whether a product idea can be manufactured within cost limits. See Section 8.2: Changing Things: New Products and Technologies.)

Recruiting activities can be divided into which of the following categories? Job specification and compensation techniques Job analysis and contingency planning Internal recruiting and external recruiting Employees and potential employees

Internal recruiting and external recruiting (Today, recruiting is sometimes referred to as talent acquisition through internal recruiting, or promote-from-within , and through external recruiting in which applicants are provided by a variety of outside sources. See Section 9.4: Finding the Right People.)

Which of the following statements provides the best definition of delegation? It is the duty to perform the task that has been assigned. It allows managers to transfer the rights and duties of decision making and action taking to those lower in the organizational hierarchy. It is the requirement to report and justify task outcomes to those higher in the chain of command. It is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources.

It allows managers to transfer the rights and duties of decision making and action taking to those lower in the organizational hierarchy. (When managers transfer authority and responsibility to positions below them in the hierarchy, it is called delegation. Delegation should increase an organization's flexibility by allowing people "on the spot" to make decisions. See Section 7.1: Organizing the Vertical Structure.)

Which of the following statements is NOT characteristic of internal recruiting? It involves the use of advertising, state employment services, online recruiting services, and private employment agencies. It offers opportunities for career advancement to employees rather than outsiders. It increases employee commitment. It is less costly than the external recruiting method.

It involves the use of advertising, state employment services, online recruiting services, and private employment agencies. (Internal recruiting is less costly than an external search, and it generates higher employee commitment, development, and satisfaction because it offers opportunities for career advancement to employees rather than outsiders. See Section 9.4: Finding the Right People.)

Which of the following is a characteristic of an organization with an organic system? It follows a centralized structure. It is free-flowing and adaptive. It is characterized by rules. It typically has a vertical structure.

It is free-flowing and adaptive. (With goals of innovation and a rapidly changing environment, however, the organization tends to be much looser, free-flowing, and adaptive, using an organic system. See Section 7.4: Factors Shaping Structure.)

Which of the following statements provides the best definition of responsibility? It is the duty to perform the task that has been assigned. It allows managers to transfer the rights and duties of decision making and action taking to those lower in the organizational hierarchy. It is the requirement to report and justify task outcomes to those higher in the chain of command. It is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources.

It is the duty to perform the task that has been assigned. (Responsibility is the flip side of the authority coin; it refers to the duty to perform the task or activity that one has been assigned. See Section 7.1: Organizing the Vertical Structure.)

Which of the following statements is true of innovativeness? It is undesirable when individuals and organizations are faced with a constant need to change. It is considered a positive characteristic in many companies. It is the extent to which a person adopts innovations later than other people in a peer group. It is concerned exclusively with products and technologies.

It is the extent to which a person adopts innovations later than other people in a peer group. (Innovativeness is thought of as the degree to which a person adopts innovations earlier than other people in a peer group. Innovativeness is considered a positive characteristic for people in many companies where individuals and organizations are faced with a constant need to change. See Section 8.1: Innovation and the Changing Workplace.)

Which of the following statements provides the best definition of authority? It is the duty to perform the task that has been assigned. It allows managers to transfer the rights and duties of decision making and action taking to those lower in the organizational hierarchy. It is the requirement to report and justify task outcomes to those higher in the chain of command. It is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources.

It is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources. (Authority is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve outcomes desired by the organization. See Section 7.1: Organizing the Vertical Structure.)

In the context of managing the implementation of a change, which of the following statements is true of negotiation? It is used when a group has power over the implementation of a change. It is used when solid information about a change is needed by users and others who may resist implementation. It becomes necessary in crisis situations when a rapid response is urgent. It uses informal bargaining to win acceptance and approval of a desired change.

It is used when a group has power over the implementation of a change. (Negotiation is a more formal means of achieving cooperation. Negotiation uses formal bargaining to win acceptance and approval of a desired change. See Section 8.4: Implementing Change.)

Which of the following is a provision of the Consolidated Omnibus Budget Reconciliation Act (COBRA)? It imposes a fee on firms with 50 or more employees if the government subsidizes their employees' health care coverage. It requires employers to provide up to 12 weeks unpaid leave for childbirth, adoption, or family emergencies. It establishes mandatory safety and health standards in organizations. It requires continued health insurance coverage—paid by employee—following termination.

It requires continued health insurance coverage—paid by employee—following termination. (COBRA requires that an organization provide continued health insurance coverage (paid by the employee) following termination. See Section 9.2: The Impact of Federal Legislation on HRM.)

Which of the following statements is true of organization development (OD)? It uses behavioral science knowledge and techniques to improve an organization's health and effectiveness. It aims at making the production of a product more efficient. It is the primary way in which organizations adapt to changes in markets, technology, and competition. It is an unplanned process of change to improve the bottom line of an organization.

It uses behavioral science knowledge and techniques to improve an organization's health and effectiveness. (Organization development (OD) is a planned, systematic process of change that uses behavioral science knowledge and techniques to improve an organization's health and effectiveness through its ability to adapt to the environment, improve internal relationships, and increase learning and problem-solving capabilities. See Section 8.3: Changing People and Culture.)

Which of the following statements is true of crowdsourcing? It uses the Internet to tap into new ideas outside the boundaries of an organization. It is a successful model that ensures internal coordination in an organization. It is used to gather creative ideas for solving corporate issues. It follows a closed innovation approach.

It uses the Internet to tap into new ideas outside the boundaries of an organization. (The Internet has made it possible for companies to tap into ideas from around the world and let hundreds of thousands of people contribute to the innovation process, which is why some approaches to open innovation are referred to as crowdsourcing. Crowdsourcing is also being used to gather creative ideas for solving social issues. See Section 8.2: Changing Things: New Products and Technologies.)

Which of the following organizational change tools offers greater possibilities for fundamental, radical transformation of the entire culture? Focus group Telecommuting Organizational development Large-group intervention

Large-group intervention (The large-group approach offers greater possibilities for fundamental, radical transformation of the entire culture, whereas the traditional approach creates incremental change in a few individuals or small groups at a time. See Section 8.3: Changing People and Culture.)

Which of the following typically is considered a line department? Research and development Strategic planning Human resources Manufacturing

Manufacturing (Line authority means that people in management positions have the formal authority to direct and control immediate subordinates. Staff authority is narrower and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise. Staff authority is a communication relationship. See Section 7.1: Organizing the Vertical Structure.)

Which of the following is a reason people resist change? People fear loss of corporate status in the market. People resist flexibility and prefer a rigid approach for implementing innovations. Most people have a low aversion to risk. Many people prefer the status quo.

Many people prefer the status quo. (Many people prefer the status quo and tend to resist change. See Section 8.1: Innovation and the Changing Workplace.)

_____ is distinguished by standardized production runs. Continuous process production technology Mass production technology Unit production technology Small-batch production technology

Mass production technology (Mass production technology is distinguished by standardized production runs. A large volume of products is produced, and all customers receive the same product. Standard products go into inventory for sale as customers need them. See Section 7.4: Factors Shaping Structure.)

The RHS Law Firm is highly specialized and characterized by rules and procedures. It also has a clear hierarchy of authority. What type of system is it? Correctional Mechanistic Organic Horizontal

Mechanistic (Goals of efficiency and a stable environment are associated with a mechanistic system. This type of organization is highly specialized and characterized by rules, procedures, and a clear hierarchy of authority. See Section 7.4: Factors Shaping Structure.)

Which of the following describes a characteristic of companies that successfully innovate? New-product development processes are supported by top management across organizational functions and units. Old and time-tested technologies are preferred to recent technological developments. Customers' feedback takes a back seat while designing a new product. Cross-functional teams are encouraged in order to reduce expenditure and avoid confusion.

New-product development processes are supported by top management across organizational functions and units. (Companies that successfully innovate usually have the following characteristics: (1) A shared new-product development process that is advocated and supported by top management cuts across organizational functions and units. (2) Members from key departments—research, manufacturing, marketing—cooperate in the development of the new product or service. See Section 8.2: Changing Things: New Products and Technologies.)

What kind of decisions are responses to unique situations? Ill-structured Novel Nonprogrammed Programmed

Nonprogrammed (Nonprogrammed decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization. See Section 6.1: Types of Decisions and Problems.)

Omega Manufacturing mass-produces bottles for the beverage industry. It has a decentralized structure with mostly verbal communication. The indirect to direct labor ratio is 1:1, and the supervisor span of control is 15. Which of the following statements best summarizes the situation at Omega? Omega is highly successful using an organic structure given the technical complexity and type of manufacturing technology. Because production and consumption of Omega's products are simultaneous, it should adopt a more mechanistic structural form. Because the production process at Omega is nonroutine, closer supervision is needed; therefore, an organic structure is used. Omega should adopt a highly centralized, mechanistic structural form because it is the type of structure more in keeping with the goals of mass production firms.

Omega should adopt a highly centralized, mechanistic structural form because it is the type of structure more in keeping with the goals of mass production firms. (Centralization is high for mass production and low for small-batch and continuous process. Overall, small-batch and continuous process firms have somewhat loose, flexible structures (organic), and mass production firms have tight vertical structures (mechanistic). Low-performing firms tend to deviate from the preferred structural form. See Section 7.4: Factors Shaping Structure.)

_____ uses behavioral science knowledge and techniques to improve an organization's health and effectiveness. Organization development Market development Product development Supply chain development

Organization development (Large-scale culture change is not easy. Two specific tools that can smooth the culture change process are training and development programs and organization development (OD). See Section 8.3: Changing People and Culture.)

_____ is the adoption of a new idea or behavior by an organization. Disruptive technology Organizational change Personal innovation Ambidextrous change

Organizational change (Organizational change is defined as the adoption of a new idea or behavior by an organization. See Section 8.1: Innovation and the Changing Workplace.)

When trying to overcome resistance to change, which of the following approaches is best suited when users need to feel involved? Negotiation Top management support Participation Coercion

Participation (Top management support should be used when change involves multiple departments or reallocation of resources, or users doubt the legitimacy of change. Participation is the best tactic when users need to feel involved. See Section 8.4: Implementing Change.)

Which of the following statements is true of the horizontal linkage model? Development teams work in isolation, and contact with the customers is discouraged during the development process. People from different departments in an organization meet only after an idea is finalized. People from different departments in an organization meet frequently in teams and task forces to share ideas and solve problems. Steps are taken to ensure that the work done by the research team is unaffected by the customer complaints collected by the marketing team during the development process.

People from different departments in an organization meet frequently in teams and task forces to share ideas and solve problems. (One approach to successful innovation is called the horizontal linkage model. In this model, people from different departments meet frequently in teams and task forces to share ideas and solve problems. See Section 8.2: Changing Things: New Products and Technologies.)

Manager conflicts about what goals to pursue or what course of action to take typically find which of the following models useful? Bounded rationality model Classical model Administrative model Political model

Political model (The political model is useful for making nonprogrammed decisions when conditions are uncertain, information is limited, and there are manager conflicts about what goals to pursue or what course of action to take. See Section 6.2: Decision-Making Models.)

_____ is the primary way in which organizations adapt to changes in markets, technology, and competition. People change Product and service innovation Culture change Innovation in enterprise structure

Product and service innovation (A product change is a change in an organization's product or service outputs. Product and service innovation is the primary way in which organizations adapt to changes in markets, technology, and competition. See Section 8.2: Changing Things: New Products and Technologies.)

Which of the following statements about the role that social media play in recruiting is true? High-achieving young professionals do not rank a company's social media reputation an important factor in naming companies they want to work for. The role of big data analytics has not yet reached an influential level in managerial recruitment. Professional social media can provide recruiters with an immense amount of data, such as work experience, skills, certifications, achievements, connections, and education. Global talent acquisitions managers overwhelmingly prefer traditional recruiting methods.

Professional social media can provide recruiters with an immense amount of data, such as work experience, skills, certifications, achievements, connections, and education. (Smart managers do much of their recruiting today via the Internet, including social media sites such as LinkedIn, Facebook, and Twitter. Professional social media can provide recruiters with an immense amount of data. See Section 9.4: Finding the Right People.)

Michael is a shift manager at Plymouth Manufacturing. He believes he is seeing an increase in drug use among the workforce. He thinks he needs to investigate further. He is at which of the following stages of the managerial decision-making process? Development of alternatives Recognition of decision requirement Evaluation and feedback Diagnosis and analysis of causes

Recognition of decision requirement (Recognition of decision requirement is the first step in the decision-making sequence, and it requires surveillance of the internal and external environment for issues that merit executive attention. See Section 6.3: Decision-Making Steps.)

In the MBO process, step 2 is to develop action plans. What are the two parts of step 3 of the MBO process? Set departmental goals and set individual goals Implement action plans and appraise performance Appraise performance and set new goals Review progress on action plans and take corrective action

Review progress on action plans and take corrective action (MBO includes the steps of setting goals, developing action plans, reviewing progress, and appraising performance. The step of reviewing progress also includes taking corrective action. See Section 5.3: Operational Planning.)

Which of the following situations would present a potential drawback for managers who are setting stretch goals? Employees are compelled to think in new ways that can lead to bold, innovative breakthroughs. Commitment levels are elevated when employees are involved in setting goals and determining the means to reach them. Some employees might resort to extreme or unethical measures to meet seemingly unachievable targets. A company that focuses on innovation and excellence rather than gradual, incremental improvements in products, processes, or systems is less likely to be left behind.

Some employees might resort to extreme or unethical measures to meet seemingly unachievable targets. (Even stretch goals must be seen as achievable or employees will be discouraged and demotivated, and some might resort to extreme or unethical measures to meet the targets. See Section 5.6: Innovative Approaches to Planning)

Evidence-based decision making is a response to which of the following potential biases? Seeing what you want to see Perpetuating the status quo Justifying past decisions Overconfidence

Seeing what you want to see (Using hard evidence can help take emotion out of the decision-making process, keep people from relying on faulty assumptions, and prevent managers from "seeing what they want to see." See Section 6.6: Innovative Decision Making.)

Which of the following was created by Lockheed Martin to give highly talented people more time and freedom? New-venture fund New-venture team Idea incubator Skunkworks

Skunkworks (An idea incubator is an organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy or politics. The original skunkworks, which still exists, was created by Lockheed Martin more than 50 years ago. The essence of a skunkworks is that highly talented people are given the time and freedom to let creativity reign. See Section 8.2: Changing Things: New Products and Technologies.)

Low technical complexity, decentralization, and an organic structure are typical of which of the following types of manufacturing technology? Mass production Large-batch production Continuous process Small-batch production

Small-batch production (Small-batch production firms produce goods in batches of one or a few products designed to customer specification. An organic, horizontal approach is needed for a differentiation strategy and when the organization needs flexibility. See Section 7.4: Factors Shaping Structure.)

Which of the following statements best describes innovation in organizations? Winning companies only innovate in large ways. Smart managers do not let innovation take a back seat when companies struggle through a tough economy. Organizations innovate solely in terms of products and technologies. Managers who are ruthless about innovation are bound to fail in the long run.

Smart managers do not let innovation take a back seat when companies struggle through a tough economy. (Winning companies are continually innovating in both large and small ways. Companies might still be struggling through a tough economy, but smart managers know they cannot let innovation take a back seat. See Section 8.1: Innovation and the Changing Workplace.)

Kristine and her manager, Len, are on a business trip to present a sales proposal to a prospective client. At dinner, Len tells Kristine that she can have the team leader job for the next big project the company gets if she sleeps with him that night. What type of sexual harassment has Len just committed? Generalized Solicitation with promise of reward Coercion with threat of punishment Positional authority

Solicitation with promise of reward (Solicitation with promise of reward is a form of sexual harassment that treads a fine line as an attempt to "purchase" sex, with the potential for criminal prosecution. See Section 9.10 Factors Affecting Women's Careers.)

The environment in which organizations using decentralization of decision making would be characterized by which of the following? Strategy that encourages creativity Greater need to manage risk The need to avoid duplication of effort Certainty

Strategy that encourages creativity (Decentralization fits with the strategy of allowing creative people to innovate and respond quickly to consumer needs. See Section 7.1: Organizing the Vertical Structure.)

_____ defines what to do, while _____ defines how to do it. Strategy; organizing Organizing; controlling Organizing; planning Controlling; strategy

Strategy; organizing (Organizing is important because it follows strategy. Strategy defines what to do; organizing defines how to do it. See Section 7.1: Organizing the Vertical Structure.)

In the context of the culture change process, which of the following statements is true of training? Successful companies provide training that solely relies on behavioral science knowledge. Successful companies provide training to managers, who in turn influence people throughout the organization. Training is rarely used to change people's mind-sets. Training is an ineffective tool to bring about culture change on a large scale.

Successful companies provide training to managers, who in turn influence people throughout the organization. (Training is one of the most frequently used approaches to changing people's mind-sets. Successful companies want to provide training and development opportunities for everyone, but they might particularly emphasize training and development for managers, with the idea that the behavior and attitudes of managers will influence people throughout an organization and lead to culture change. See Section 8.3: Changing People and Culture.)

Within Consumer Group's human resources department, Carmen is responsible for reporting on and taking steps to implement affirmative action. Which of the following would be considered affirmative action? The company eliminates hiring and promotion decisions based on criteria that are not job-relevant. The company provides up to 12 weeks unpaid leave for childbirth, adoption, or family emergencies. The company takes positive steps to guarantee equal employment opportunities for people within protected groups. The company takes positive steps to guarantee promotion from within.

The company takes positive steps to guarantee equal employment opportunities for people within protected groups. (Affirmative action requires that an employer take positive steps to guarantee equal employment opportunities for people within protected groups. See Section 9.2: The Impact of Federal Legislation on HRM.)

Which of the following stages of organization development is often associated with diagnosis and use of a change agent? Refreezing Unfreezing Changing Intervention

Unfreezing (The first stage of organization development, unfreezing, makes people throughout an organization aware of problems and the need for change. See Section 8.3: Changing People and Culture.)

Which of the following would NOT be considered a disadvantage of the matrix approach? The conflict and frequent meetings generated by the matrix allow new issues to be raised and resolved. The matrix structure leads to more discussion than action because different goals and points of view are being addressed. It generates conflict because it pits divisional against functional goals in a domestic structure. Rivalry between the two sides of the matrix can be exceedingly difficult for two-boss employees to manage.

The conflict and frequent meetings generated by the matrix allow new issues to be raised and resolved. (The conflict and frequent meetings generated by the matrix allow new issues to be raised and resolved. The matrix can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible, innovative, and adaptable. See Section 7.2: Departmentalization.)

Which of the following statements is NOT part of the definition of organization structure? The formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers' control The design of systems to ensure effective coordination of employees across departments The desired future circumstance or condition that the organization attempts to realize The set of formal tasks assigned to individuals and departments

The desired future circumstance or condition that the organization attempts to realize (Organization structure is defined as (1) the set of formal tasks assigned to individuals and departments; (2) formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers' control; and (3) the design of systems to ensure effective coordination of employees across departments. See Section 7.1: Organizing the Vertical Structure.)

When several departments, such as marketing, research, and manufacturing, work closely together to develop new products, this is an example of which of the following models? The linear model The traditional phase gate model The market pull model The horizontal linkage model

The horizontal linkage model (Successful innovation requires expertise from several departments simultaneously. Using a horizontal linkage model means that several departments, such as marketing, research, and manufacturing, work closely together to develop new products. See Section 8.2: Changing Things: New Products and Technologies.)

The manager of the chemical products division disagrees with the budget set out for her R&D department by the accountant in her division. The vice president of finance claims no money is available for R&D right now. In this matrix structure, how will this dispute be resolved? The division manager knows what money is needed to effectively operate the division's R&D department, so the budget will be revised to accommodate the division's needs. This matter is unlikely to be resolved because no one has definitive authority over the matter. The issue will be referred to the president who, as top leader, has authority over both the vice president and division manager and will make a decision based on what is best for the company. The vice president has ultimate authority over budget matters of the divisions, and so the budget will go unchanged.

The issue will be referred to the president who, as top leader, has authority over both the vice president and division manager and will make a decision based on what is best for the company. (The top leader oversees both the product and functional chains of command and takes responsibility for maintaining a power balance between the two sides of the matrix. If disputes arise between them, the problem will be kicked upstairs to the top leader. See Section 7.2: Departmentalization.)

Which of the following statements best describes the 360-degree feedback approach to performance appraisal? The individual being evaluated also completes an evaluation after he or she has seen all other evaluations. The main purpose of 360-degree feedback is to increase awareness of strengths and weaknesses and to guide employee development. The 360-degree feedback allows for any number of evaluators along a one- or two-dimension evaluation. Members of the appraisal group are limited to supervisors and coworkers.

The main purpose of 360-degree feedback is to increase awareness of strengths and weaknesses and to guide employee development. (The 360-degree feedback approach uses multiple raters, including self-rating, as a way to increase awareness of strengths and weaknesses and to guide employee development. See Section 9.5: Developing Talent.)

A manager wants to ensure a diversity of perspective is achieved within his department. Which of the following approaches would best achieve that goal? The manager stereotypes his or her team of employees based on their cultural backgrounds. The manager creates a heterogeneous team made up of individuals with different backgrounds and skill sets. The manager conforms to the consensus of his or her group. The manager makes an employee feel like an esteemed member of a group in which his or her different skills are highly appreciated.

The manager creates a heterogeneous team made up of individuals with different backgrounds and skill sets. (Diversity of perspective is achieved when a manager creates a heterogeneous team made up of individuals with diverse backgrounds and skill sets. By tapping into the strengths of diversity, teams are more likely to experience higher efficiency, better quality, and increased innovation and creativity. See Section 9.8: Managing Diversity.)

What is the difference between a matrix boss and a top leader? The matrix boss is the product or functional boss and responsible for one side of the matrix, while the top leader is responsible for the entire matrix and oversees both the product and functional chains of command. There is no distinct difference between matrix boss and top leader: they both are responsible for horizontal and vertical chains of command. The matrix boss oversees both the product and functional chains of command, while the top leader is responsible for the entire matrix. The matrix boss reports to two supervisors simultaneously, while the top leader oversees both the product and functional chains of command.

The matrix boss is the product or functional boss and responsible for one side of the matrix, while the top leader is responsible for the entire matrix and oversees both the product and functional chains of command. (The matrix boss is the product or functional boss, who is responsible for one side of the matrix. The top leader is responsible for the entire matrix. The top leader oversees both the product and functional chains of command. See Section 7.2: Departmentalization.)

In the context of organization development (OD) activities, which of the following statements is true of a large-group intervention? It is the least popular tool for bringing about culture change. The number of participants can be as high as 500. It restricts learning to one part of an organization at a time. It focuses on an organization's employees by separating the organization from its external environment.

The number of participants can be as high as 500. (In the large-scale intervention model of organizational change, the focus is on the entire system, which takes into account an organization's interaction with its environment. A large-group intervention might involve 50 to 500 people and last several days. See Section 8.3: Changing People and Culture.)

Which of the following is NOT a driving force of the just-in-time inventory system? Competitive market response Fewer workers Union resistance Inventory cost savings

Union resistance (Driving forces of a JIT inventory system include inventory cost savings, fewer workers, and more competitive market response. Union resistance is one of the barriers to JIT. See Section 8.4: Implementing Change.)

Which of the following statements would characterize a permanent team? The team emphasizes vertical communication. The team works to complete a specific task and includes representatives from the various functions who coordinate their work. The team does not allow front-line employees to make decisions to resolve issues on their own. The team pushes authority to an organization's top levels.

The team works to complete a specific task and includes representatives from the various functions who coordinate their work. (In permanent teams, 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. Authority is pushed down to lower levels, and front-line employees are often given the freedom to make decisions and take action on their own. See Section 7.2: Departmentalization.)

In what way do the traditional model of diversity and the inclusive model of diversity differ? The traditional model excludes dimensions such as race, gender, age, and physical ability, whereas the inclusive model includes all of the ways in which employees differ. The traditional model excludes dimensions such as race, gender, age, and physical ability, whereas the inclusive model includes inborn differences that are immediately observable. The traditional model includes all of the ways in which employees differ, whereas the inclusive model includes inborn differences that are immediately observable. The traditional model includes all of the ways in which employees differ, whereas the inclusive model includes aspects of diversity that can be acquired.

The traditional model excludes dimensions such as race, gender, age, and physical ability, whereas the inclusive model includes all of the ways in which employees differ. (The dimensions of diversity in the traditional model include inborn differences that are immediately observable and include race, gender, age, and physical ability. However, the inclusive model of diversity includes all of the ways in which employees differ, including aspects of diversity that can be acquired or changed throughout one's lifetime. See Section 9.7: Diversity in the Workplace.)

When designing an organization, a strategic team should look out for which of the following bottom-up pressures? The work processes performed to produce the organization's products Economic conditions Organizational goals The political and legal environments in which the organization operates

The work processes performed to produce the organization's products (External strategic needs, such as environmental conditions, strategic direction, and organizational goals, create top-down pressure for designing an organization in such a way as to fit the environment and accomplish strategic goals. Structural decisions also take into consideration pressures from the bottom up—that is, from the technology and work processes that are performed to produce the organization's products and services. See Section 7.4: Factors Shaping Structure.)

Stretch goals are best described by which of the following statements? They are statements that reduce uncertainty for employees and clarify what they should accomplish. They are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence. They are plans that define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions. They are precise and measurable results expected from departments, work groups, and individuals.

They are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence. (Stretch goals are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence. Stretch goals are typically so far beyond the current levels that people have to be innovative to find ways to reach them. See Section 5.6: Innovative Approaches to Planning.)

Which of the following statements explains the purpose of a focus strategy? This strategy allows the organization to concentrate on a narrow market niche. This strategy allows the organization to distinguish its product or service from those of its competition. This strategy allows the organization to achieve a low-cost position relative to the competition. This strategy allows the organization to take advantage of easy-to-use manufacturing technologies and highly efficient procurement and distribution systems.

This strategy allows the organization to concentrate on a narrow market niche. (When a company uses a differentiation or a cost leadership strategy in a particular market or buyer group, it is employing a focus strategy. This strategy allows the organization to concentrate on a narrow market niche. See Section 5.11: Formulating Business-Level Strategy.)

A manager at your company has been accused of sexual harassment. Which of the following laws has been violated? Title V of the Sarbanes-Oxley Act Title VII of the Civil Rights Act Social Security Act Amendments Freedom of Information Act

Title VII of the Civil Rights Act (Sexual harassment is a violation of Title VII of the Civil Rights Act. The Equal Employment Opportunity Commission (EEOC) guidelines specify that verbal or physical conduct of a sexual nature becomes sexual harassment when submission to the conduct is tied to continued employment or advancement or when the behavior creates an intimidating, hostile, or offensive work environment. See Section 9.2: The Impact of Federal Legislation on HRM.)

What is the overall goal for Marek's team in conducting a SWOT analysis for their organization? To assess the strengths, weaknesses, opportunities, and threats that affect their company To perform a cost-benefit analysis for the executive managers To develop a mission and articulate the company's values To provide an assessment of all of the company's competitors

To assess the strengths, weaknesses, opportunities, and threats that affect their company (SWOT analysis includes a careful assessment of the strengths, weaknesses, opportunities, and threats that affect organizational performance. See Section 5.9: What Is Strategic Management?)

What is the first step in strategic management? To establish the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals To engage in scenario building through strategic thinking and execution To identify the company's core competencies To measure the costs of providing a product/service and maintaining customer loyalty

To establish the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals (The first step in strategic management is to define an explicit strategy, which is the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals. See Section 5.9: What Is Strategic Management?)

Starlight Production has acquired three small studios and must consolidate services. The CEO has traveled to each of the locations and discussed the transition with all the local staff. Which of the following approaches to change implementation is the CEO using? Participation Top management support Negotiation Coercion

Top management support (The visible support of top management makes people aware of the importance of the change. See Section 8.4: Implementing Change.)

Rolf is an accountant for a major architectural firm. His manager is the CFO for the company. He is also on a team that is responsible for putting together project proposals for clients. In this position, Rolf answers to the vice president of operations. Which of the following principles is broken in this situation? Scalar principle Responsibility Work specialization Unity of command

Unity of command (Unity of command means that each employee is held accountable to only one supervisor. See Section 7.1: Organizing the Vertical Structure.)

Which of the following statements about diversity in corporate America is true? Of the total number of foreign-born workers, nearly half are Asian and 23 percent are Hispanic. Men outnumber women in the workplace, and their numbers are projected to grow slightly faster. The number of workers age 55 and older is expected to decline from 66.9 to 63.7 percent by 2020. Unlike different generations working together in the past, there are strong value differences among employees from different eras today.

Unlike different generations working together in the past, there are strong value differences among employees from different eras today. (Today's workforce is in a state of flux as a blend of four generations presents new management challenges, as evidenced by the strong value differences among employees from different eras. See Section 9.7: Diversity in the Workplace.)

Communication and education are best used under which of the following conditions? An outside force has power over implementation. Users need solid information about the change. A crisis exists, and time to make the change is short. The change is nontechnical.

Users need solid information about the change. (Communication and education are used when solid information about the change is needed by users and others who may resist implementation. See Section 8.4: Implementing Change.)

Jeff is in a wheelchair but is perfectly able to do his job at an engineering firm. Which of the following laws protects him from discrimination based on physical or mental disability? Occupational Safety and Health Act Patient Protection and Affordable Care Act Vocational Rehabilitation Act Age Discrimination in Employment Act

Vocational Rehabilitation Act (The Vocational Rehabilitation Act of 1973 is one of the major federal laws related to human resource management (HRM). It prohibits discrimination based on physical or mental disability and requires that employees be informed about affirmative action plans. See Section 9.2: The Impact of Federal Legislation on HRM.)

Which of the following is a characteristic of the large-group intervention model? Widely shared Learning for the small group Results in incremental change Limited distribution

Widely shared (The sources of information for discussion are expanded to include customers, suppliers, community members, and even competitors, and this information is shared widely so that everyone has the same picture of the organization and its environment. See Section 8.3: Changing People and Culture.)

Which of the following statements best conveys the concept of the female advantage in management? Women who want to move up the corporate ladder are finding more and more success because most women are voluntarily leaving the fast track. Women don't want corporate power and status in the same way that men do. Women are expected to be softer and gentler, yet their hard, more assertive qualities get them rewarded and promoted. Women's management style tends to be a more collaborative, less hierarchical, relationship-oriented approach that is in tune with today's global and multicultural environment.

Women's management style tends to be a more collaborative, less hierarchical, relationship-oriented approach that is in tune with today's global and multicultural environment. (Women are "better able to deliver in terms of what modern society requires of people—paying attention, abiding by rules, being verbally competent, and dealing with interpersonal relationships in offices." See Section 9.10 Factors Affecting Women's Careers.)

Which of the following factors is associated with less supervisor involvement and thus larger spans of control? Rules and procedures for task activities are not clearly defined. Significant time is required to coordinate with other departments or planning. Work performed by subordinates is stable and routine. Subordinates are dispersed among numerous locations.

Work performed by subordinates is stable and routine. (Generally, when supervisors need little involvement with subordinates, it can be large. With stable and routine work tasks, subordinates do not need close supervision. See Section 7.1: Organizing the Vertical Structure.)

To make performance evaluations as free of rating errors as possible, a manager can use critical incidents pertaining to job performance, described by specific behavioral statements, in a technique called: social learning. stereotyping. 360-degree feedback. a behaviorally anchored rating scale (BARS).

a behaviorally anchored rating scale (BARS). (The job can be broken down into several dimensions, such as equipment maintenance, with a BARS developed for each dimension. Good performance and unacceptable performance are represented by a scale (e.g., 1-5). If a job has eight dimensions, the total performance evaluation will be the sum of the scores for each of eight scales. See Section 9.5: Developing Talent.)

IKEA's growth strategy is centered largely on franchising. Part of franchising involves disseminating marketing and sales approaches and information about new products to franchisees who attend sessions at the IKEA Concept Center. This facility and the approach IKEA uses is: an assessment center. on-the-job training. a corporate university. a learning community.

a corporate university. (The corporate university is an in-house training and education facility that offers broad-based learning opportunities for employees and frequently for customers, suppliers, and strategic partners as well. See Section 9.5: Developing Talent.)

A choice made from available alternatives is called: systematic logic. a decision. problem solving. a goal.

a decision. (A decision is a choice made from available alternatives. See Section 6.1: Types of Decisions and Problems.)

Frontier Nursing's policy states that more than six unexcused absences in a one-year period shall result in a suspension. Francis, the lead nurse, has just decided to suspend one of her certified nursing assistants for violating this policy. This is an example of: an insignificant decision. a programmed decision. poor management. a nonprogrammed decision.

a programmed decision. (Programmed decisions involve situations that have occurred often enough to enable decision rules to be developed and applied in the future. The nursing assistant has violated the unexcused absences policy so Francis's decision is a programmed decision. See Section 6.1: Types of Decisions and Problems.)

The first why in "the 5 Whys" generally produces: the interconnectedness of the problem. a superficial explanation for the problem. the primary cause of the problem. the outlying factor of the problem.

a superficial explanation for the problem. (The first why generally produces a superficial explanation for the problem, and each subsequent why probes deeper into the causes of the problem. See Section 6.3: Decision-Making Steps.)

Jatara, a human resource manager, wants to move her company towards blind hiring practices. Which suggestion might she make to the management team? a. Ask applicants to complete a project that reflects what their duties would be. b. Contact former employers to get applicants' performance evaluations c. Require certified copies of applicants' college transcripts d. Focus on how applicants present themselves during in-person interviews.

a. Ask applicants to complete a project that reflects what their duties would be. (Blind hiring focuses managers on an applicant's job skills and performance rather than educational credentials, appearance, or prior experience and usually asks applicants to complete a project or assignment that relates to the type of work they'll be doing if hired. See 9-3 The Changing Social Contract)

Allison, a manager, must make decisions about a problem she is facing in her current project. She has identified the decision requirement and has analyzed the causes of the problem. Which of the following actions should she take next? a. Generate possible alternative solutions to the problem b. Evaluate her course of action and ask for realistic feedback c. Implement the eco-friendliest solution to the problem d. Select a desirable solution to the problem to engage her company's employees

a. Generate possible alternative solutions to the problem (Allison should generate possible alternative solutions to the problem. After analyzing the causes of a problem, the next stage in the decision-making process is to generate possible alternative solutions that will respond to the needs of the problem and correct the underlying causes. See 6-3: Decision-Making Steps)

Which outcome is most likely to result from building a strong, diverse workforce? a. Increased quality of team problem solving b. Inefficient use of employee talent c. Higher employee turnover d. Narrower understanding in leadership positions

a. Increased quality of team problem solving (A strong, diverse workforce is associated with increased quality of team problem solving. See 9-8 Managing Diversity)

Hester's manufacturing software company is doing better than it ever has and just a year ago it was floundering. Prior to a year ago, she'd been part of a team of manufacturing software experts working on customer problems. Progress was slow as projects moved through department after department. When a new owner purchased the company, the company was reorganized, and she now works on a team that is made up of software engineers, finance people, marketing, and customer relations. Productivity and reaction time to customer needs increased dramatically. What structure was Hester now a part of under the new ownership? a. Permanent teams b. Cross-functional teams c. Autocratic structures d. Centralized structures

a. Permanent teams (In this scenario, the new owners saw how the bureaucracy was slowing down production and innovation, and created permanent teams made up of several different functional areas. See 7-2: Departmentalization)

When Google created its China-based search engine www.google.cn, they did not foresee eventually abandoning it because of censorship issues with the Chinese government. Google created www.google.cn because country-based search engines, such as France-based www.google.fr and Greece-based www.google.gr, had been profitable for the company in the past. Which of the following biases could have been in effect when Google made the initial decision to launch www.google.cn? a. Perpetuating the status quo b. Being influenced by emotions c. Justifying past decisions d. Initiating the sunk cost effect

a. Perpetuating the status quo (The bias of perpetuating the status quo could have been in effect when Google made the initial decision to launch www.google.cn. Managers may base decisions on what has worked in the past and fail to explore new options, dig for additional information, or investigate new technologies. See 6-5: Why Do Managers Make Bad Decisions?)

Under what circumstances is participation a particularly useful strategy in creating change? a. When users need to feel involved or have the power to resist b. When a crisis exists and change is essential or when other methods have failed c. When a group has power over implementation or a group will lose out in the change d. When change is technical and users need accurate information

a. When users need to feel involved or have the power to resist (When users need to feel involved or have the power to resist, participation may be particularly useful. See 8-4 Implementing Change)

Legazint, a law firm, organizes its staff into departments based on the type of clients the department deals with. These departments include sole proprietorships, federally incorporated organizations, partnerships, limited liability companies, and corporations. In the context of the approaches to structural design, Legazint most likely follows _____. a. a customer-based division b. a geographic-based division c. the functional approach d. the matrix approach

a. a customer-based division (In this scenario, Legazint most likely follows a customer-based division. A method for assigning divisional responsibility is to group company activities by geographic region or customer group. See 7-2: Departmentalization)

A(n) _____ is a unit separate from the rest of the organization that is responsible for developing and initiating a major innovation a. new-venture team b. idea incubator c. new-venture fund d. idea champion

a. new-venture team (One way to facilitate entrepreneurship is through a new-venture team, which is a unit separate from the rest of the organization that is responsible for developing and initiating a major innovation. See 8-2 Changing Things: New Products and Technologies)

The managers of a rapidly growing company decided to modify its structure by grouping its employees into different teams. The entire business process of the company was modified to improve cost, quality, service, and speed. In this scenario, the company most likely experienced a shift from: a. a strong vertical structure to one emphasizing stronger horizontal coordination. b. a strong horizontal structure to one emphasizing stronger vertical coordination. c. a focus on staff authority to a focus on line authority. d. a decentralized structure to a centralized structure.

a. a strong vertical structure to one emphasizing stronger horizontal coordination. (In this scenario, the company most likely experienced a shift from a strong vertical structure to one emphasizing stronger horizontal coordination. Reengineering refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Because the focus of reengineering is on horizontal workflows rather than function, reengineering generally leads to a shift away from a strong vertical structure to one emphasizing stronger horizontal coordination. See 7-3: Organizing for Horizontal Coordination)

The "old" social contract included the idea that employees _____. a. are cogs in a machine b. deserve creative development opportunities c. should receive challenging assignments d. should have a voice in business improvement

a. are cogs in a machine (Under the old social contract, employees were viewed as cogs in a machine. See 9-3 The Changing Social Contract)

Dean owns a bakery that creates customized cakes for business events and weddings. When he faced a problem with the execution of the design for a wedding cake, he assembled his team members in a room, explained the problem to them, and asked them to spontaneously suggest ways to resolve the problem. Dean was surprised by the number of innovative solutions he received from his team members. In the given scenario, Dean used a technique called _____. a. brainstorming b. groupthink c. diagnosis d. point-counterpoint

a. brainstorming (In the given scenario, Dean used a technique called brainstorming. Brainstorming is a technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for making a decision. See 6-6: Innovative Decision Making)

If a company is to respond successfully to change, it must be able to _____ and _____, which is known as the _____ approach. a. create ideas; implement ideas; ambidextrous b. create ideas; evaluate ideas; innovative c. implement ideas; evaluate implementations; ambidextrous d. evaluate innovations; use feedback to improve innovations; feedback loop

a. create ideas; implement ideas; ambidextrous (Successful change requires that organizations be capable of both creating and implementing ideas, which means the organization must learn to be ambidextrous. See 8-1 Innovation and the Changing Workplace)

Job _____ is to the specific tasks, duties, and responsibilities as job _____ is to the knowledge, skills, and abilities needed to perform the job. a. description; specification b. analysis; description c. specification; analysis d. analysis; specification

a. description; specification (A written job description is a clear and concise summary of the specific tasks, duties, and responsibilities of a job; a job specification outlines the knowledge, skills, education, physical abilities, and other characteristics needed to perform the job adequately. See 9-4 Finding the Right People)

In _____ innovation, innovations in products or services end up completely replacing existing products or service technologies. a. disruptive b. emerging c. reverse d. ambidextrous

a. disruptive (Disruptive innovation refers to innovations in products or services that typically start small and end up completely replacing an existing product or service technology for producers and consumers. See 8-1 Innovation and the Changing Workplace)

The most common diversity initiative among Fortune 1000 companies is _____. a. diversity-focused recruitment b. changes in management c. training and education d. community outreach

a. diversity-focused recruitment (The most common diversity initiative among Fortune 1000 companies is diversity-focused recruiting, followed by training and education, and community outreach. See 9-11 Diversity Initiatives and Programs)

The broad activities of human resource management include _____. a. finding the right people b. supporting management c. developing policies and procedures d. disciplining employees

a. finding the right people (The three broad human resource management activities are to find the right people, manage talent so that people achieve their potential, and maintain the workforce over the long term. See 9-1 The Strategic Role of HRM Is to Drive Organizational Performance)

Organizational development focuses on the _____ aspects of an organization. a. human and social b. internal and external c. vertical and horizontal d. fiscal and human resources

a. human and social (Organizational development focuses on the human and social aspects of the organization and works to change attitudes and relationships among employees, helping to strengthen the organization's capacity for adaptation and renewal. See 8-3 Changing People and Culture)

Beatrix has been working for SooperSoft Fabrics for a number of years. As confusing as some might find it, she answers to two separate managers—one manager for the Northeast division of manufacturing and the other a product manager. While it's rare, she occasionally has to resolve conflicting information that comes from two different directions. Beatrix is a two-boss employee, which means she's working in what type of structural design? a. matrix approach b. divisional approach c. vertical functional approach d. team-based approach

a. matrix approach (In this scenario, Beatrix is working in a matrix approach to structural design. The matrix approach combines aspects of both functional and divisional structures simultaneously, in the same part of an organization. See 7-2: Departmentalization)

Compensation is most accurately described as _____. a. monetary payments and non-monetary rewards b. non-monetary goods provided to employees c. employee benefits d. performance-based bonuses

a. monetary payments and non-monetary rewards (The term compensation refers to (1) all monetary payments and (2) all goods or commodities used in lieu of money to reward employees. See 9-6 Maintaining an Effective Workforce)

GM's decision to continue to manage eight brands, despite flagging sales and customer loss, is most strongly an example of ________. a. perpetuating the status quo b. being influenced by emotions c. being overconfident d. being influenced by initial impressions

a. perpetuating the status quo (Although it took decades for GM to end up in a place where they had to declare bankruptcy and reorganize, the decline in their sales was palpable beginning in the 70s. The decision not to reorganize sooner was based entirely on Managers' decisions that this was just how things had always been done. See 6-5: Why Do Managers Make Bad Decisions?)

At Finafax Inc., employees share information freely, irrespective of their departments and areas of functionality. They use coordination to maintain ongoing positive relationships and for effective problem solving rather than solely for formal communication. Given this information, it can be concluded that Finafax Inc. most likely focuses on _____. a. relational coordination b. line authority c. vertical coordination d. centralization

a. relational coordination (Given this information, it can be concluded that Finafax Inc. most likely focuses on relational coordination. In an organization with a high level of relational coordination, people share information freely across departmental boundaries, and people interact on a continuous basis to share knowledge and solve problems. See 7-3: Organizing for Horizontal Coordination)

The horizontal linkage model is particularly useful when _____ is critical. a. speed b. creativity c. secrecy d. cost

a. speed (The horizontal linkage model is increasingly important in a high-pressure business environment that requires rapidly developing and commercializing products and services. See 8-2 Changing Things: New Products and Technologies)

Kendra is the new finance manager for a swiftly growing software company. She frequently works with other departments to assist them in making certain payroll is handled correctly and that the proper forms are used for equipment purchases. In this scenario, Kendra is exhibiting _______. a. staff authority b. line authority c. pseudo-authority d. horizontal authority

a. staff authority (In this scenario, Kendra is using her Staff Authority to advice, recommend, and counsel other managers in her specific area of expertise. See 7-1: Organizing the Vertical Structure)

All of the following are cognitive biases that can affect a manager's judgment, EXCEPT: justifying past decisions. being influenced by initial impressions. abandoning the status quo. seeing what you want to see.

abandoning the status quo. (Cognitive biases include being influenced by initial impressions, justifying past decisions, seeing what you want to see, and perpetuating the status quo. See Section 6.5: Why Do Managers Make Bad Decisions?)

Decisions determine how the organization solves problems, allocates resources, and: satisfies its stakeholders. makes reasonable profits. meets its commitments. accomplishes its goals.

accomplishes its goals. (Good decision making is a vital part of good management because decisions determine how the organization solves problems, allocates resources, and accomplishes its goals. See Section 6.1: Types of Decisions and Problems.)

Within an organization, the intersection between authority and responsibility is: departmentalization. sustainability. accountability. delegation.

accountability. (Accountability is the mechanism through which authority and responsibility are brought into alignment. Accountability 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. See Section 7.1: Organizing the Vertical Structure.)

Lillian is the chief financial officer at her company. She is responsible for keeping accurate financial records of the company and reporting them as required by the government. She has a staff of administrative workers and accountants which she authorizes to complete various aspects of these tasks. Given this responsibility and authority, Lillian is _____ to the shareholders of the company and the Securities and Exchange Commission. accountable acceptable complicit compliant

accountable (Accountability is the mechanism through which authority and responsibility are brought into alignment. Accountability 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. See Section 7.1: Organizing the Vertical Structure.)

Some companies engage in _____ in which they buy an early-stage start-up (usually shutting it down) in order to obtain the creative talent. acqui-hiring company branding contingent workforce hiring affirmative action

acqui-hiring (Acqui-hiring has become common in the tech world where established companies buy early-stage start-ups, often shutting them down, simply to acquire their engineering talent. See Section 9.3: The Changing Nature of Careers.)

According to the six thinking hats technique, the red hat is the one that: generates ideas and solutions for better problem solving. allows an emotional response to a subject based on feelings, intuitions, and hunches. focuses on why a suggestion will not work. focuses on the values and benefits of an idea.

allows an emotional response to a subject based on feelings, intuitions, and hunches. (According to the six thinking hats technique, the red hat is the one that allows emotional response to the subject. See Section 8.2: Changing Things: New Products and Technologies.)

When managers involved in a decision see things differently and disagree about what they want, it creates: a wicked decision problem. ambiguity. a diversity of viewpoints. risk.

ambiguity. (Managers involved in a decision create ambiguity when they see things differently and disagree about what they want. See Section 6.1: Types of Decisions and Problems.)

In _____, the product manager invested time in reviewing the results of his decisions and learned from them. an interactive group the classical model a brainstorming session an after-action review

an after-action review (The classical model of decision making is based on rational economic assumptions and manager beliefs about what ideal decision making should be. The after-action review is a disciplined procedure whereby managers review the results of decisions to evaluate what worked, what didn't, and how to do things better. See Section 6.6: Innovative Decision Making.)

In showing how investments in human capital contribute to stronger organizational performance and better financial results, managers can use a framework that begins at the foundation by: planning for factors such as globalization, changing technology, societal trends, and government regulations. improving key performance areas to, in turn, lead to improved business results. increasing human capital capabilities that drive higher performance in key areas such as innovation or customer service. assessing internal processes such as workforce planning, career development, and performance appraisal.

assessing internal processes such as workforce planning, career development, and performance appraisal. (To show how investments in human capital contribute to stronger organizational performance and better financial results, managers can use a framework, which begins at the bottom (level 3) by assessing internal processes such as workforce planning, career development, and performance appraisal. See Section 9.1: The Strategic Role of HRM Is to Drive Organizational Performance.)

_____ refers to what sets an organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace. a. Due diligence b. Competitive advantage c. Organizational nepotism d. Organizational culture

b. Competitive advantage (Competitive advantage refers to what sets an organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace. See 5-8: What Is Strategic Management?)

Assuming it is well-implemented, which type of training is considered the fastest and most effective way to facilitate learning in the workplace? a. Corporate university b. On-the-job training c. Structured online classes d. Social learning

b. On-the-job training (When implemented well, on-the-job training is considered the fastest and most effective means of facilitating learning in the workplace. See 9-5 Developing Talent)

Which statement about so-called religious freedom acts is the most accurate? a. Religious freedom acts are largely symbolic and have no impact on customers or employees. b. Religious freedom acts allow certain businesses to refuse to serve gay people based on personal faith. c. Religious freedom acts are almost always vigorously supported by businesses. d. Religious freedom acts have been passed in every state of the United States.

b. Religious freedom acts allow certain businesses to refuse to serve gay people based on personal faith. (Religious freedom acts typically allow religious groups and some private businesses to refuse to serve gay customers based on personal faith. See 9-2 The Impact of Federal Legislation on HRM)

The bottom-up approach is to the _____ strategy as horizontal coordination mechanisms are to the _____ strategy. a. cooperation; exploration b. exploration; cooperation c. innovation roles; exploration d. cooperation; innovation roles

b. exploration; cooperation (Exploration involves a bottom-up approach, which means encouraging the flow of ideas from lower levels and making sure they get heard and acted upon by top executives. Cooperation involves horizontal coordination, in which, for example, the research, manufacturing, and sales and marketing departments within an organization simultaneously contribute to new products and technologies. See 8-2 Changing Things: New Products and Technologies)

Moira loves her job as a coder and is very good at it. She is very much viewed as an up-and-coming star in her company. Moira has been offered a promotion to a position that would make her the head of a team of coders and require her to spend a significant proportion of her time managing employees rather than coding. Moira is not interested in management and turns down the promotion. Moira is best described as _____. a. a disengaged employee b. opting-out c. demotivated d. hitting the glass ceiling

b. opting-out (Moira has opted-out by getting off the fast track well before she hits the glass ceiling. See 9-10 Factors Affecting Women's Careers)

A visual representation of an organization's structure is also known as the _______. a. unity of command chart b. organization chart c. division of labor chart d. work specialization chart

b. organization chart (An organization chart is the visual representation of an organization's structure. See 7-1: Organizing the Vertical Structure)

An organization that accommodates several subcultures is practicing _____. a. ethnorelativism b. pluralism c. exceptionalism d. ethnocentrism

b. pluralism (Pluralism means that an organization accommodates several subcultures. Movement toward pluralism seeks to integrate fully into the organization the employees who otherwise would feel isolated and ignored. See 9-9 Factors Shaping Personal Bias)

Sheree works for a publishing company where she coordinates the efforts of designers, editors, typesetters, proofreaders, and members of other departments. However, she is not considered a member of any of these departments. Sheree's role is most likely as a ______. a. marketing manager b. project manager c. team lead d. technical lead

b. project manager (In this scenario, Sheree is most likely a project manager. A project manager is a person who is responsible for coordinating the activities of several departments for the completion of a specific project. The distinctive feature of the project manager position is that the person is not a member of one of the departments being coordinated. See 7-3: Organizing for Horizontal Coordination)

Under the "new" social contract, employees _____. a. are virtually guaranteed lifetime employment b. receive incentive-based compensation c. typically have routine jobs d. get standardized training

b. receive incentive-based compensation (The new social contract emphasizes incentive-based compensation. See 9-3 The Changing Social Contract)

According to your text, today, when managers think about diversity, they _____. a. focus on avoiding lawsuits b. recognize diversity allows their companies to compete globally c. worry about how to create uniform attitudes in a diverse workforce d. wonder how other employees will react to apparent tokenism

b. recognize diversity allows their companies to compete globally (In the past, when managers thought of diversity, they focused on the "problems" associated with diversity, such as discrimination, bias, affirmative action, and tokenism. Now managers recognize that the differences people bring to the workplace are valuable. Rather than expecting all employees to adopt similar attitudes and values, managers are learning that these differences enable their companies to compete globally and tap into rich sources of new talent. See 9-7 Diversity in the Workplace)

In Weldract Inc., a graphic design firm, employees from different departments such as coders, testers, and designers work together in a group on any given project. Each group works directly with customers. This structure helps improve horizontal coordination in the organization. Given this information, Weldract Inc. most likely follows the _____ to structural design. a. divisional approach b. team-based approach c. functional approach d. matrix approach

b. team-based approach (Given this information, Weldract Inc. most likely follows the team-based approach to structural design. With a team-based 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. See 7-2: Departmentalization)

During the refreezing stage of organization development, employees: implement a specific plan for training managers and employees. provide data through personal interviews, questionnaires, and observations of meetings. are presented with information that shows discrepancies between desired behaviors or performance and the current state of affairs. begin to view the changes as a normal, integral part of how the organization operates.

begin to view the changes as a normal, integral part of how the organization operates. (Employees provide data through personal interviews, questionnaires, and observations of meetings during the unfreezing stage. The third stage, refreezing, occurs when individuals acquire new attitudes or values and are rewarded for them by the organization. See Section 8.3: Changing People and Culture.)

The _____ style is often the style adopted by managers who like to talk to people one on one. analytical directive behavioral conceptual

behavioral (The directive style is used by people who prefer simple, clear-cut solutions to problems. Managers using the behavioral style like to talk to people one on one. See Section 6.4: Personal Decision Framework.)

Many companies try to gauge an applicant's innovativeness and ability to solve problems. One of the ways companies try to assess this quality is through _____, in which the answers aren't as important as how the applicant goes about addressing them. professional social media online checks personality tests brain teasers

brain teasers (An unusual type of test, called a brain teaser, is being used by companies that put a premium on innovativeness and problem solving. The answers aren't as important as how the applicant goes about solving the problem. See Section 9.4: Finding the Right People.)

As a team manager, Barbara works with others on her marketing team every day to develop new ideas. Her preferred decision-making approach is to generate as many possible ideas in a short amount of time. This approach is referred to as: point-counterpoint. groupthink. escalating commitment. brainstorming.

brainstorming. (Point-counterpoint breaks a decision-making group into two subgroups and assigns them different, often competing, responsibilities. Barbara is employing brainstorming, which uses a face-to-face interactive group to spontaneously suggest as many ideas as possible for solving a problem. See Section 6.6: Innovative Decision Making.)

Lora is a middle manager and has been tasked with completing performance appraisals for her supervisees. One employee in particular produces very high-quality work in a timely fashion and can always be counted on to help others facing tight deadlines. However, his peers see him as abrasive and difficult to work with. When Lora rates this employee, she gives him uniformly high ratings, even in categories related to interactions with other employees. What type of error has Lora made? a. Dissonance resolution b. Self-serving bias c. Halo effect d. Stereotyping

c. Halo effect (In the halo effect, a manager gives an employee the same rating on all dimensions, even if his or her performance is good on some dimensions and poor on others. See 9-5 Developing Talent)

Under the matching model, the company's needs are to _____ as the employees' needs are to _____. a. company goals; employee goals b. employee "wants;" company "wants" c. employee contributions; company inducements d. company contributions; employee inducements

c. employee contributions; company inducements (Under the matching model, company needs are matched to employee contributions and employee needs are matched to company inducements. See 9-4 Finding the Right People)

A(n) _____ is an organizational program that provides a safe harbor where employees can generate and develop ideas without interference. a. new-venture fund b. new-venture team c. idea incubator d. idea champion

c. idea incubator (An idea incubator is an organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy or politics. See 8-2 Changing Things: New Products and Technologies)

In the context of the chain of command, _____ perform tasks that reflect an organization's primary goal and mission. a. support departments b. staff departments c. line departments d. advisory departments

c. line departments (Line departments perform tasks that reflect an organization's primary goal and mission. See 7-1: Organizing the Vertical Structure)

A major advantage of the Six Thinking Hats technique is that _____. a. each group member has a specific, independent role b. no single individual can dominate the group c. negative views do not overwhelm creativity d. the group does not get distracted by impractical ideas

c. negative views do not overwhelm creativity (When the Six Thinking Hats technique is used, each perspective (rational, fact-based thinking; emotional thinking; creative thinking; negative thinking; optimistic thinking; group facilitation) is heard in sequence, and negative views or arguments do not overwhelm creativity. See 8-2 Changing Things: New Products and Technologies)

The company Booz Allen Hamilton has a(n) _____ system called "Inside First," which offers opportunities for career advancement to employees rather than outsiders. employee compensation internal recruiting training contingency workforce

internal recruiting (Many organizations use internal recruiting, or promote-from-within policies, to fill positions within the company. See Section 9.4: Finding the Right People.)

Teri owns and operates an award-winning bakery and is always looking for new ideas to develop. She uses social media to ask her customers what new products and services they would like to see. Teri is using _____. a. horizontal linkages b. a new venture team c. open innovation d. an idea incubator

c. open innovation (Open innovation means extending the search for and commercialization of new ideas beyond the boundaries of the organization and even beyond the boundaries of the industry, sharing knowledge and resources with other organizations and individuals outside the firm. See 8-2 Changing Things: New Products and Technologies)

When managers look at current trends, visualize the future, and think about what could be, rather than looking only at history and thinking about what has been, they are most likely using _____. a. job evaluation b. company branding c. scenario building d. random sampling

c. scenario building (When managers look at current trends, visualize the future, and think about what could be, rather than looking only at history and thinking about what has been, they are most likely using scenario building. Scenario building involves looking at current trends and discontinuities and visualizing future possibilities. See 5-5: Planning for a Turbulent Environment)

The employees of Clevmark Inc., a software firm, are divided into separate teams, and each team performs only its designated set of tasks. When the company faces a new strategic issue, a separate team is created to deal with the specific function. This scenario best illustrates _____. a. competitive advantage b. labor mobility c. work specialization d. job benchmarking

c. work specialization (This scenario best illustrates work specialization. Work specialization, sometimes called division of labor, is the degree to which organizational tasks are subdivided into separate jobs. See 7-1: Organizing the Vertical Structure)

In the context of the four roles in an organizational change, the _____ is passionately com-mitted to a new idea or product despite rejection by others. critic champion inventor sponsor

champion (Successful innovation in most companies involves the interplay of different people, each adopting one role. The champions are passionately committed to a new idea or product despite rejection by others. See Section 8.2: Changing Things: New Products and Technologies.)

In the context of organization development, individuals experiment with new behavior and learn new skills to be used in the workplace during the: refreezing stage. negotiating stage. unfreezing stage. changing stage.

changing stage. (The second stage of organization development, changing, occurs when individuals experiment with new behavior and learn new skills to be used in a workplace. See Section 8.3: Changing People and Culture.)

Companies use a narrow span of control to facilitate: close supervision of work. a flatter organization structure. routine work. delegation.

close supervision of work. (Generally, when supervisors must be closely involved with subordinates, the span should be small, and when supervisors need little involvement with subordinates, it can be large. See Section 7.1: Organizing the Vertical Structure.)

Ted supports increasing Amax Corporation's growth by acquiring RedStone Corporation, so he talks informally to other executives and tries to persuade them to support the decision. Ted is: derailing decision making. applying rational analysis. coalition building. satisficing.

coalition building. (Rational analysis is often combined with intuition by managers making complex decisions under time pressure. Coalition building is the process of forming alliances among managers. See Section 6.2: Decision-Making Models.)

Gina from the accounting department needs better data from the production department in order to pay invoices and to send bills in a more timely manner. Harry from the production department needs faster approval of purchase requests and better access to budget proposals. Gina and Harry meet to find solutions to these issues. Through their _____, they devise a system of communication and procedures that makes these processes flow more smoothly. collaboration strategic planning reengineering coordination

collaboration (Collaboration means a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose. See Section 7.3: Organizing for Horizontal Coordination.)

Coca-Cola sells carbonated sugar water yet it has built one of the most valuable and recognizable brands in the world. This brand recognition is a significant part of its: scenario building. performance appraisal. competitive advantage. management-by-objectives.

competitive advantage. (Competitive advantage refers to what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace. The essence of formulating strategy is choosing how the organization will be different. See Section 5.9: What Is Strategic Management?)

Renee brought in her shift managers to talk about current production problems and possible alternative solutions. She has a(n) _____ style. directive behavioral conceptual analytical

conceptual (Renee has a conceptual style. The conceptual style is used by people who like to talk to others about the problem and possible alternatives for solving it. See Section 6.4: Personal Decision Framework)

In the case of emergencies, setbacks, or unexpected conditions, a company's responses would be guided by its: coalitional plans. strategic plans. contingency plans. tactical plans.

contingency plans. (Contingency plans define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions. To develop contingency plans, managers identify important factors in the environment, such as possible economic downturns, declining markets, increases in cost of supplies, new technological developments, or safety accidents. See Section 5.5: Planning for a Turbulent Environment.)

Avery is a highly trained IT technician. She has worked for three different companies during the past year on a temporary basis. Avery is what is known as a: contingent worker. lifer. full-time employee. pensioner.

contingent worker. (Contingent workers are people who work for an organization, but not on a permanent or full-time basis. See Section 9.3: The Changing Nature of Careers.)

When a manager is asked to adjust and synchronize the diverse activities among different individuals and departments, that manager is performing the task of: departmentalization. collaboration. coordination. subordination.

coordination. (Coordination refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments. See Section 7.3: Organizing for Horizontal Coordination.)

Plymouth Solution Source allocates resources to personnel and projects without immediate payoff and tasks are loosely defined. Plymouth Solution Source can best be described as a(n)_____ type of organization. entrepreneurial cooperative experimental creative

creative (Creative organizations are loosely structured. People find themselves in a situation of ambiguity, assignments are vague, territories overlap, tasks are loosely defined, and much work is done by teams. See Section 8.2: Changing Things: New Products and Technologies.)

As a team member, Rosa reports to her department, and she also reports to the team leader. Rosa is part of a _____ team. permanent vertical virtual network cross-functional

cross-functional (One approach to using teams in organizations is through cross-functional teams, which consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems. Team members typically still report to their functional departments, but they also report to a team, one member of whom may be the leader. See Section 7.2: Departmentalization.)

A major shift in the norms, values, and mind-set of the entire organization is: culture change. people change team building. organizational development.

culture change. (Organization development is a planned, systematic process of change that uses behavioral science techniques to improve an organization's health and effectiveness. Culture change refers to a change in the norms, values, and mind-set of an entire organization. See Section 8.3: Changing People and Culture.)

Anastasia, a regional manager, started a project three years ago while riding high on the success of several other projects that had earned her a name within the company and accelerated her career path. Using her early successes as free rein to move forward with some risky decisions, she found after three years that her decisions were not paying off and the project was in jeopardy. Which of the following biases does Anastasia exhibit in this scenario? a. Justifying past decisions b. Being influenced by initial impressions c. Seeing what one wants to see d. Being overconfident

d. Being overconfident (Anastasia's decisions were built around her past successes and she became overconfident in her ability to read risk and lead the project. See 6-5: Why Do Managers Make Bad Decisions?)

Which statement about internships is most accurate? a. Interns are almost never hired by the companies they intern for. b. Interns are still treated as gophers who fetch coffee and make photocopies. c. Internships are typically a waste of company time and money. d. Companies view internships as a way to get to know a potential employee.

d. Companies view internships as a way to get to know a potential employee. (Companies are increasingly viewing internships as a valuable recruiting tool because they provide a way to "test-drive" a potential employee, as well as allow the intern to evaluate whether the job and the company make a good fit. See 9-4 Finding the Right People)

According to your text, CEOs are most likely to rate which of the following as important to competitive success? a. Service innovation b. Product innovation c. Customer relationships d. Human capital

d. Human capital (CEOs are most likely to human capital as important to competitive success. See 9-1 The Strategic Role of HRM Is to Drive Organizational Performance)

Thomas cannot seem to stop himself from making comments about how much he enjoys various sexual activities with women. He most often makes his comments to a particular co-worker, who is very uncomfortable and avoids Thomas as much as possible. What category of sexual harassment does Thomas's behavior best fit? a. Coercion with threat of punishment b. Sexual misdemeanor c. Solicitation with promise of reward d. Inappropriate/offensive

d. Inappropriate/offensive (Inappropriate/offensive behavior causes discomfort in a coworker, whose reaction in avoiding the harasser may limit his or her freedom and ability to function in the workplace. See 9-11 Diversity Initiatives and Programs)

Which of the following is the first step in the managerial decision-making process? a. Development of alternative solutions to a problem b. Evaluation and feedback c. Selection of the desired alternative to a problem c

d. Recognition of a decision requirement (Recognition of a decision requirement is the first step in the managerial decision-making process. Awareness of a problem or an opportunity is the first step in the decision-making sequence, and it requires surveillance of the internal and external environment for issues that merit executive attention. See 6-3: Decision-Making Steps)

In which stage of organizational development do individuals acquire new attitudes or values and get rewarded for them by the organization? a. Intervening b. Changing c. Unfreezing d. Refreezing

d. Refreezing (Refreezing occurs when individuals acquire new attitudes or values and are rewarded for them by the organization. See 8-3 Changing People and Culture)

James, a human resource manager, is preparing materials for an upcoming series of interviews, and has created a set of standardized questions that will be asked of every applicant. What kind of interview will be held? a. Task-based b. Nondirective c. Subjective d. Structured

d. Structured (Structured interviews use a set of standardized questions that are asked of every applicant so comparisons can easily be made. See 9-4 Finding the Right People)

Which of the following is a difference between the classical model of decision making and the administrative model of decision making? a. The classical model is most useful when applied to nonprogrammed decisions, whereas the administrative model is most useful when applied to programmed decisions. b. The administrative model is considered normative, whereas the classical model is considered descriptive. c. The administrative model assumes that managers settle for a maximizing solution, whereas the classical model assumes that managers settle for a satisficing solution. d. The classical model defines how managers should make decisions, whereas the administrative model defines how managers actually make decisions.

d. The classical model defines how managers should make decisions, whereas the administrative model defines how managers actually make decisions. (A difference between the classical model of decision making and the administrative model of decision making is that the classical model defines how managers should make decisions, whereas the administrative model defines how managers actually make decisions. See 6-2: Decision-Making Models)

Amanda, the CEO of a company, knows that constructive conflict can help bring problems to the forefront and develop innovative solutions for them. When she faced the conflict of whether or not to merge with a rival company, she brought the issue to the notice of a select group of employees and encouraged them to discuss the advantages and disadvantages of the merger. She assigned Steve, the vice president of the company, the task of challenging each and every assumption and assertion made by the group. In the given scenario, Steve played the role of a _____. a. headhunter b. boomerang employee c. whistle-blower d. devil's advocate

d. devil's advocate (In the given scenario, Steve played the role of a devil's advocate. A devil's advocate has the role of challenging the assumptions and assertions made by a group discussing a problem and looking for ways to resolve it. See 6-6: Innovative Decision Making)

The 1963 Equal Pay Act prohibits differences in pay for substantially equal work based on _____. a. race/ethnicity b. age c. disability status d. sex

d. sex (The 1963 Equal Pay Act prohibits sex differences in pay for substantially equal work. See 9-2 The Impact of Federal Legislation on HRM)

Employee affinity groups are based on _____. a. need for skill development b. job performance level c. job title d. social identity

d. social identity (Employee affinity groups are based on social identity, such as gender or race, and are organized to focus on the concerns of employees from that group. See 9-11 Diversity Initiatives and Programs)

Because Rebecca's medical technology company operates in an environment that can change rather quickly, she focuses the company's strategy on being innovative and hires creative people. She finds that _____ fits best with this strategy. little or no delegation decentralization centralization the accounting approach to departmentalization

decentralization (With decentralization, decision authority is pushed downward to lower organization levels. Decentralization fits with the strategy of allowing creative people to innovate and respond quickly to consumer needs. See Section 7.1: Organizing the Vertical Structure.)

As the human resources manager at her company, Elsa has transferred some of her responsibility and authority for interviewing potential employees to two human relations specialists. In other words, Elsa has ______ these tasks to her employees. delegated centralized reported counseled

delegated (Delegation is the process that managers use to transfer authority and responsibility to positions below them in the hierarchy. See Section 7.1: Organizing the Vertical Structure.)

Managers are considered to have a(n) _____ style when they prefer simple, clear-cut solutions. conceptual directive analytical behavioral

directive (Managers who tend toward the conceptual style like to consider a broad amount of information. The directive style is used by people who prefer simple, clear-cut solutions to problems. See Section 6.4: Personal Decision Framework.)

Managers who prefer simple, clear-cut solutions have a(n) _____ style. conceptual behavioral analytical directive

directive (Managers with an analytical style like to consider complex solutions based on as much data as they can gather. The directive style is used by people who prefer simple, clear-cut solutions to problems. See Section 6.4: Personal Decision Framework.)

Managers who take _____ out of the decision-making process make better decisions. the status quo emotions political thinking bias

emotions (Managers make better decisions when—to the extent possible—they take emotions out of the decision-making process. See Section 6.5: Why Do Managers Make Bad Decisions?)

During the refreezing stage of organization development: managers gather and analyze data through personal interviews, questionnaires, and observations of meetings. employees experiment with new behavior and learn new skills to be used in a workplace. employees display new attitudes or values and are rewarded by an organization. managers present information that shows discrepancies between desired behaviors or performance and the current state of affairs.

employees display new attitudes or values and are rewarded by an organization. (The third stage of organization development, refreezing, occurs when individuals acquire new attitudes or values and are rewarded for them by an organization. See Section 8.3: Changing People and Culture.)

As part of the workforce today that operates under the new social contract, John's daughter understands the focus of that social contract to be on: employees' job security. offering routine jobs for employees. offering standard training programs for employees. employees' learning and skill development.

employees' learning and skill development. (The new contract is based on the concept of employability rather than lifetime employment. Individuals are responsible for developing their own skills and abilities, understanding their employer's business needs, and demonstrating their value to their organization. See Section 9.3: The Changing Nature of Careers.)

At Lithium Technologies, the careers page on its website contains employee-written reviews about the company so that potential employees can get to know the company through its workers' eyes. Through this approach, Lithium provides a strong: Equal Employment Opportunity Commission compliance. employer brand. contingency plan. affirmative action.

employer brand. (An employer brand is similar to a product brand except that it promotes the organization as a great place to work, rather than promoting a specific product or service. See Section 9.3: The Changing Nature of Careers.)

With an ambidextrous approach to change, managers: focus on incorporating processes that support creative impulse rather than the implementation of changes. encourage flexibility to innovate and use a less rigid approach for implementing innovations. encourage the use of a customized, centralized approach for implementing changes. focus on incorporating processes that facilitate the implementation of changes rather than the creation and initiation of ideas.

encourage the use of a customized, centralized approach for implementing changes. (An ambidextrous approach means incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations. With an ambidextrous approach, managers encourage flexibility and freedom to innovate and propose new ideas with creative departments and other mechanisms, but they use a more rigid, centralized, and standardized approach for implementing innovations. See Section 8.1: Innovation and the Changing Workplace.)

Jared pushed to continue investing time and money in the new production solution despite strong evidence that it was not working. This is referred to as: collective intuition. technological decisions. escalating commitment. team delay.

escalating commitment. (When managers and organizations continue to invest time and money in a solution even when there is strong evidence that it is not appropriate, it is referred to as escalating commitment. See Section 6.6: Innovative Decision Making.)

Susan has been a nurse at a hospital in a predominantly white community for more than 20 years. A new nurse, Emilio, has been assigned to work with Susan. Although Susan treats Emilio politely, she confides to another coworker that she doesn't understand why the hospital would hire male Hispanic nurses when it's obvious that they can't be as caring, compassionate, and effective as nurses like herself. This roadblock to diversity is called: inclusion. ethnocentrism. discrimination. polarization.

ethnocentrism. (Ethnocentrism is the belief that one's own group is inherently superior to other groups. See Section 9.9: Factors Shaping Personal Bias.)

Matt is being alert to potential biases and seeking and examining the evidence with rigor, which means he is using: after-action review. selective decision making. brainstorming. evidence-based decision making.

evidence-based decision making. (Brainstorming uses a face-to-face interactive group to spontaneously suggest as many ideas as possible for solving a problem. Matt is using evidence-based decision making, which means being alert to potential biases and seeking and examining the evidence with rigor. See Section 6.6: Innovative Decision Making.)

A manager who sticks with a decision because he or she has invested a lot of resources in it, hoping to turn it around even when it is obvious the project is falling apart, is: overconfident. doubling down. perpetuating the status quo. experiencing the sunk cost effect.

experiencing the sunk cost effect. (When a manager continues to pour money into a failing project, hoping to turn things around, this is sometimes referred to as the sunk cost effect. See Section 6.5: Why Do Managers Make Bad Decisions?)

Experiential Vacations concentrates its marketing efforts on its target market of adults over 60. It is using a _____ strategy. cost leadership focus differentiation core competence

focus (A focus strategy is based on either a differentiation or a cost leadership approach, but concentrates on a specific regional market or buyer group. See Section 5.11: Formulating Business-Level Strategy.)

Pilot Mount Sales Group's managers believe strongly in empowering employees who have actual contact with clients and therefore pursue a _____ strategy. focused cost leadership market share focused differentiation stretch goal

focused differentiation (Empowering employees who have customer contact is an important characteristic of a focused differentiation strategy. See Section 5.11: Formulating Business-Level Strategy.)

Organization development (OD) techniques can contribute to organizational revitalization by: developing an ethnocentric attitude toward market expansion. fostering commitment. encouraging stereotypical views among employees. restricting the search for new ideas within the boundaries of an organization.

fostering commitment. (Organization development techniques can contribute greatly to cultural revitalization by managing conflicts, fostering commitment, and facilitating communication. See Section 8.3: Changing People and Culture.)

In her position of _____, Salama is responsible for developing and carrying out operational plans that focus on meeting customer service levels such as calls per hour, time per resolution of customer issues, and customer's rating of satisfaction. front-line manager middle manager executive manager customer service representative

front-line manager (Front-line managers and supervisors develop operational plans that focus on specific tasks and processes and that help meet tactical and strategic goals. See Section 5.1: Goal Setting and Planning Overview.)

In a _____ structure, the major departments under the president are groupings of similar expertise and resources. decentralized functional divisional program

functional (In a functional structure, also called a U-form (unitary structure), activities are grouped together by common function from the bottom to the top of an organization. A functional structure can be thought of as departmentalization by organizational resources because each type of functional activity—accounting, human resources, engineering, and manufacturing—represents specific resources for performing the organization's task. See Section 7.2: Departmentalization.)

The traditional approaches rely on the chain of command to define departmental groupings, and reporting relationships follow the hierarchy in the: team-based, matrix, and virtual network approaches. divisional, virtual network, and matrix. departmental, team-based, and divisional approaches. functional, matrix, and divisional approaches.

functional, matrix, and divisional approaches. (The functional, divisional, and matrix approaches are traditional approaches to departmentalization that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy. See Section 7.2: Departmentalization.)

Research indicates that planning _____ a company's performance. generally has a positive effect on provides the required structure for assuring positive outcomes from always has a positive effect on generally does not make either a positive or negative difference on

generally has a positive effect on (Research indicates that planning generally positively affects a company's performance. Planning can reduce uncertainty for employees and clarify what they should accomplish. Planning focuses attention on specific targets and provides a standard of assessment. See Section 5.4: Benefits and Limitations of Planning.)

Maintaining unity rather than realistically challenging problems and alternatives is known as: escalating commitment. playing the devil's advocate. groupthink satisficing.

groupthink (A devil's advocate plays the role of challenging the assumptions and assertions made by a group. Groupthink refers to the tendency of people in groups to suppress contrary opinions in order to maintain unity. See Section 6.6: Innovative Decision Making.)

As an HR manager, Jan plays a vital role in corporate strategy because: she brings people together in an interactive group over a computer network. she is more aware than other executives of problems or opportunities outside an organization. her responsibility is putting the right people into action without which no strategy can be effective. she has the time and ability to process the limited amount of information with which to make decisions.

her responsibility is putting the right people into action without which no strategy can be effective. (HR managers are vital players in corporate strategy because no strategy can be effective without the right people to put it into action. To build human capital, HRM develops strategies for finding the best people, enhancing their skills, and appropriately rewarding them for their contributions. See Section 9.1: The Strategic Role of HRM Is to Drive Organizational Performance.)

Top management has decided on a large expansion project that would take place over the next five years. In order to ensure its progress toward completion, managers would want to make sure goals for the project: include defined time periods for goal attainment. are highly detailed in every aspect. are easy to attain. have no relationship to employee rewards.

include defined time periods for goal attainment. (Effective goals have a defined time period that specifies the date on which goal attainment will be measured. When a goal involves a two- to three-year time horizon, setting specific dates for achieving parts of it is a good way to keep people on track toward the goal. See Section 5.3: Operational Planning.)

Selena has just transferred from a position in the accounting department to one in the marketing department. In the accounting department, all the employees kept mostly to themselves, getting their work done as assigned by the manager. In the marketing department, coworkers are already asking for Selena's opinions and help on various projects. Her manager encourages her to pick one of the projects to focus on to learn department procedures. Several teams have encouraged Selena to join them. It is apparent that the marketing department puts greater emphasis on _____ than does the accounting department. rightsizing cultural norms inclusion satisficing

inclusion (Inclusion is the degree to which an employee feels like an esteemed member of a group in which his or her uniqueness is highly appreciated. See Section 9.8: Managing Diversity.)

Studies have shown that having people work in close proximity to one another does: increase collaboration. benefit from formal coordination roles or mechanisms. reduce the amount of coordination. increase the need for vertical structure.

increase collaboration. (Studies have shown that having people work in close proximity to one another does increase collaboration. Rather than having people separated into cubicles, companies are using open offices with quiet spaces designed for conversation and impromptu problem solving. See Section 7.3: Organizing for Horizontal Coordination.)

An organization with a mechanistic system: c has a decentralized decision-making authority. is free-flowing and adaptive. has a horizontal structure.

is highly specialized and characterized by rules. (Goals of efficiency and a stable environment are associated with a mechanistic system. This type of organization is highly specialized and characterized by rules, procedures, and a clear hierarchy of authority. See Section 7.4: Factors Shaping Structure.)

A crisis or sense of urgency helps managers institute change because it: makes employees feel in control. weeds out ineffective employees. highlights desired performance levels. lowers resistance.

lowers resistance. (A crisis or strong need for change lowers resistance. To effectively lead change, managers help people feel the need for change rather than just giving them facts and figures. See Section 8.4: Implementing Change.)

When a restaurant manager must select which employee to make shift manager, she is: making a decision. accomplishing a goal. solving a problem. allocating scarce resources.

making a decision. (Decisions determine how an organization solves problems, allocates resources, and accomplishes goals, but the term "decision" is defined as a choice made from available alternatives. The manager is making a choice from available alternatives, so she is making a decision. See Section 6.1: Types of Decisions and Problems.)

Franklin is part of a management team that has used the MBO system for a number of years. It is now moving toward _____, a more systematic approach that focuses attention on the methods and processes used to achieve goals rather than just on reaching the goals. management by means scenario building contingency planning management by exception

management by means (Management by means is based on the idea that when managers pursue their activities in the right way, positive outcomes will result. MBM focuses people on considering the means rather than just on reaching the goals. See Section 5.3: Operational Planning.)

A _____ is a disparity between existing and desired performance levels. force-field analysis barrier to change crisis need for change

need for change (A need for change is a disparity between existing and desired performance levels. See Section 8.4: Implementing Change.)

As part of the workforce today that operates under the new social contract, John's daughter understands her employer's focus is on: offering traditional compensation packages and benefits to the employees. providing limited information to the employees. offering lateral career moves and incentive compensation. providing her with routine roles.

offering lateral career moves and incentive compensation. (In the new social contract, an employer allows for lateral career moves and incentive compensation. The employer invests in creative training and development opportunities so that people will be more employable when the company no longer needs their services. See Section 9.3: The Changing Nature of Careers.)

When implemented well, _____ is considered the fastest and most effective type of training for facilitating learning in a workplace. social learning simulation training on-the-job training classroom learning

on-the-job training (In on-the-job training (OJT), an experienced employee is asked to take a new employee "under his or her wing" and show the newcomer how to perform job duties. When implemented well, OJT is considered the fastest and most effective means of facilitating learning in a workplace. See Section 9.5: Developing Talent.)

Roz is a production editor at a large publishing company. The department manager has asked Roz to walk Carl, a new employee, through the typical phases of book production, showing him how things work and what the tasks of his job are. This practice of _____ has worked well for the type of work Roz and Carl do. on-the-job-training internship apprenticeship school of hard knocks

on-the-job-training (In on-the-job training (OJT), an experienced employee is asked to take a new employee "under his or her wing" and show the newcomer how to perform job duties. The most common type of training is on-the-job training. See Section 9.5: Developing Talent.)

Strategic management is: one specific type of planning. creating alternative vivid pictures of what the future might be like. highly ambitious and involves compelling goals that energize people and inspire excellence. the formulation of operational goals.

one specific type of planning. (Strategic management is one specific type of planning that refers to the set of decisions and actions used to formulate and execute strategies to achieve organizational goals. See Section 5.7: Strategy.)

Today, some companies use the _____, which extends the search for and commercialization of innovative ideas beyond the boundaries of the organization. trickle-up innovation approach open innovation approach reverse innovation approach horizontal linkage approach

open innovation approach (In the past, most businesses generated their own ideas in-house and then developed, manufactured, marketed, and distributed them, which is a closed innovation approach. Today, however, forward-looking companies are trying an open innovation approach. See Section 8.2: Changing Things: New Products and Technologies.)

In the planning process, _____are typically the ones with the shortest time frame. strategic plans tactical plans operational plans mission plans

operational plans (Operational plans specify the action steps toward achieving operational goals and support tactical activities, they are precise and measurable, and they typically address a shorter time frame than other levels of organizational plans. See Section 5.2: Goal Setting in Organizations.)

When Sheila made a sales call on an established client, but realized the client could also use another, seemingly unrelated item that her company sells, she recognized a(n): opportunity. risk. problem. diagnosis.

opportunity. (Sheila recognized an opportunity. An opportunity exists when managers see potential accomplishment that exceeds specified current goals. See Section 6.3: Decision-Making Steps.)

An organization's departmental tasks and how they fit together, as well as the order and logic for the organization, can be presented on a(n): chart of decentralization. mission statement. organization chart. chart of centralization.

organization chart. (The set of formal tasks and formal reporting relationships provides a framework for vertical control of the organization and is portrayed in the organization chart, which is the visual representation of an organization's structure. See Section 7.1: Organizing the Vertical Structure.)

Research has shown that strategic thinking and planning: are important only for senior executives at today's leading companies. involve a static process for most successful companies. positively affect a firm's performance and financial success. offer benefits primarily to multimillion-dollar companies.

positively affect a firm's performance and financial success. (Research has shown that strategic thinking and planning positively affect a firm's performance and financial success, and most managers are aware of the importance of strategic planning. See Section 5.8: Thinking Strategically.)

Diana, an accountant in the planning department at her company, was offered the position of department manager when the person in that job left suddenly. Knowing that the transition would be difficult and require more hours per week and additional travel, Diana declined the job, citing her children as a priority. Diana is: a victim of the glass ceiling. part of the queen bee syndrome. part of the opt-out trend. part of the female advantage.

part of the opt-out trend. (Some women never hit the glass ceiling because they choose to get off the fast track before it comes into view. Proponents of the opt-out trend say women are deciding that corporate success is not worth the price in terms of reduced family and personal time, greater stress, and negative health effects. See Section 9.10 Factors Affecting Women's Careers.)

Christopher has been offered a position as a sales representative for a medical equipment company. He is in the process of negotiating his compensation package. He has accepted the company's offer to provide a small base salary and be paid 5 percent of his actual sales, or a _____ compensation plan. job-based competency-based pay-for-performance skill-based

pay-for-performance (Pay-for-performance, also called incentive pay, means tying at least part of compensation to employee effort and performance, whether it be through merit-based pay, bonuses, team incentives, or various gain- or profit-sharing plans. See Section 9.6: Maintaining an Effective Workforce.)

A change in the attitudes and behaviors of a few employees is: culture change. people change team building. organization development.

people change (Culture change pertains to the organization as a whole. People change refers to a change in the attitudes and behaviors of a few employees. See Section 8.3: Changing People and Culture.)

TransWorld sent its regional managers to a training course on leadership skills. Transworld is attempting: culture change. artifact change. organization change. people change.

people change. (People change concerns just a few employees, such as sending a handful of middle managers to a training course to improve their leadership skills. See Section 8.3: Changing People and Culture.)

In conducting its SWOT analysis, Marek's team collected its information about the company's strengths and weaknesses from: stock market data and economic trends. scanning the external environment. performing an audit of specific organizational functions. the financial statements and data of the organization's competitors.

performing an audit of specific organizational functions. (Both internal characteristics of the organization, the organization can exploit its strengths to achieve its strategic performance goals, whereas weaknesses might inhibit or restrict the organization's performance. To interpret strengths and weaknesses, managers perform an internal audit of specific functions. See Section 5.9: What Is Strategic Management?)

Given that their employees come from several distinct subcultures, company managers have made a conscious effort to create an environment that accommodates everyone, especially employees who might otherwise feel isolated and ignored. These managers are committed to: traditional diversity. ethnocentrism. a strong monoculture. pluralism.

pluralism. (Movement toward pluralism—accommodating subcultures—seeks to integrate fully into the organization the employees who otherwise would feel isolated and ignored. See Section 9.9: Factors Shaping Personal Bias.)

The tendency to view people who are different as being deficient is called: prejudice. stereotype. pluralism. monoculture.

prejudice. (Prejudice is an individual's opinion that people different from the individual are somehow deficient. See Section 9.9: Factors Shaping Personal Bias.)

Fred's Funhouse fell short of its quarterly sales. This is an example of a(n): diagnosis. risk. opportunity. problem.

problem. (Diagnosis is a step in the decision-making process. A problem occurs when organizational accomplishment is less than established goals. See Section 6.3: Decision-Making Steps.)

The classical model is most useful when applied to _____ decisions and to decisions characterized by certainty or risk. programmed rational nonprogrammed group

programmed (The political model is useful for making nonprogrammed decisions when conditions are uncertain, information is limited, and there are manager conflicts about what goals to pursue or what course of action to take. The classical model is most useful when applied to programmed decisions and to decisions characterized by certainty or risk. See Section 6.2: Decision-Making Models.)

Two employees at Cathy's Deli quit, which is normal for her store. The decision to fill these positions would be considered a: routine decision. recurring organizational problem. nonprogrammed decision. programmed decision.

programmed decision. (Nonprogrammed decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization. Cathy is responding to a recurring organizational problem, so she is making a programmed decision. See Section 6.1: Types of Decisions and Problems.)

The person who is responsible for coordinating the activities of several departments for the completion of a specific project is generally known as the: reengineer. project manager. cross-functional manager. collaborator.

project manager. (Project managers are located outside the departments and have responsibility for coordinating several departments to achieve desired project outcomes. See Section 7.3: Organizing for Horizontal Coordination.)

Carmen's company has undertaken a new venture. This product line has great potential, but it is in the corporate portfolio's _____ category of the BCG matrix because it is considered risky. cash cow question mark star dog

question mark (In the BCG matrix, the question mark business is risky. It could become a star, or it could fail. See Section 5.10: Formulating Corporate-Level Strategy.)

Organization change requires an organization to: respond to new regulations. abandon tried and true methods for new, untried ones. replace all the top management. recognize the need for change.

recognize the need for change. (Organizational change is the adoption of new ideas or behaviors in response to a need for change. See Section 8.1: Innovation and the Changing Workplace.)

Because the company had recently started to emphasize new product development, the executive team wanted to make sure the company had greater horizontal coordination. Departments across the entire company were reconfigured to increase sensitivity to customer needs and to increase product quality. This level of change is known as: reengineering. reverse engineering. strategic planning. reorganization.

reengineering. (Reengineering refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed, with a focus on horizontal workflows. See Section 7.3: Organizing for Horizontal Coordination.)

A task force is a team or committee designed to solve a problem involving several departments; therefore, task force members: work with continuing rather than temporary problems. belong to the same department and resolve critical issues related solely to their departments. represent their departments and share information that enables coordination. eventually form a permanent team and meet regularly.

represent their departments and share information that enables coordination. (A task force is a temporary team or committee designed to solve a problem involving several departments. Task force members represent their departments and share information that enables coordination. See Section 7.3: Organizing for Horizontal Coordination.)

The executive team at Bloomers Nursery has decided to reduce the company's workforce so that the number of employees better fits the company's current situation. Communication with employees will help this process of _____ be smoother and more effective. exit interviews performance appraisal termination rightsizing

rightsizing (Rightsizing refers to reducing the company's workforce intentionally to the point where the number of employees is deemed to be right for the company's current situation. Managers can smooth the process by providing to employees as much information as possible. See Section 9.6: Maintaining an Effective Workforce.)

The willingness to undertake risk with the opportunity of gaining an increased payoff is known as: implementation. a nonprogrammed decision. satisficing. risk propensity.

risk propensity. (Implementation is one of the six steps in the decision-making process. Risk propensity is the willingness to undertake risk with the opportunity of gaining an increased payoff. See Section 6.3: Decision-Making Steps.)

When Liz Claiborne made the decision to sell its clothing exclusively through JCPenney, this was an example of: intuition. quasirationality. bounded rationality. satisficing.

satisficing. (Satisficing occurs when managers like those at Liz Claiborne choose the first alternative that satisfies minimal decision criteria. See Section 6.2: Decision-Making Models.)

In conducting its SWOT analysis, Marek's team collected its information about the company's opportunities and threats from: departmental performance reviews. scanning the external environments. performing an audit of the internal environment. the organization's financial statements and data.

scanning the external environments. (Both are characteristics of the external environment: Opportunities have the potential to help the organization achieve or exceed its strategic goals, and threats may prevent the organization from achieving its strategic goals. See Section 5.9: What Is Strategic Management?)

Michael believed the new process would be expensive to implement and the cost would outweigh the benefit, and he found only information that supported his instinct. This is an example of: justifying past decisions. being influenced by initial impressions. perpetuating the status quo. seeing what you want to see.

seeing what you want to see. (Many managers fall into the trap of making choices that justify their past decisions, even if those decisions no longer seem valid. Michael is seeing what he wants to see in this situation. People frequently look for information that supports their existing instinct or point of view and avoid information that contradicts it. See Section 6.5: Why Do Managers Make Bad Decisions?)

According to Fast Company, in 2013, Amazon was ranked among the World's Most Innovative Company for: shrinking the big box. bringing big data to the masses. speeding up delivery. revolutionary new products.

speeding up delivery. (Amazon was listed as one of the most innovative companies because of its ability to speed up delivery. See Section 8.2: Changing Things: New Products and Technologies.)

The recent economic downturn accelerated the erosion of the old social contract between employer and employee. When John was working in the 1980s and the old social contract was in force, John's employer focused on offering: standard training programs for employees. employees opportunities to participate in decision making. creative development opportunities for employees. lateral career moves for employees.

standard training programs for employees. (In the old social contract, employers provided standard training programs for their employees. The old social contract focused on the job security of an employee. See Section 9.3: The Changing Nature of Careers.)

Dominique is a police officer. She is on a call with her partner, Ron, to a report of gunshots. When they arrive, they find that a child has been wounded in a drive-by shooting. The child looks a lot like her own child, and Dominique is so concerned about not crying out of compassion that she cannot focus on what to do next. Dominique is experiencing: stereotype threat. pluralism. ethnocentrism. the glass ceiling.

stereotype threat. (Stereotype threat occurs when a person who, when engaged in a task, is aware of a stereotype about his or her identity group suggesting that he or she will not perform well on that task. See Section 9.9: Factors Shaping Personal Bias.)

As an upper-level manager for Southwestern Airlines, Anna is most likely responsible for the achievement of _____ goals. tactical departmental operational strategic

strategic (Strategic goals, sometimes called official goals, are broad statements describing where the organization wants to be in the future. These goals pertain to the organization as a whole rather than to specific divisions or departments. See Section 5.2: Goal Setting in Organizations.)

As the product development manager at his company, Liam has called the department together to present them with the goals for the coming year. These goals include product improvements and innovations that are quite ambitious and beyond current levels in an exciting and motivating way. Liam has presented the department with: decentralized planning. contingency plans. scenario building. stretch goals.

stretch goals. (Stretch goals are typically so far beyond the current levels that people have to be innovative to find ways to reach them. See Section 5.6: Innovative Approaches to Planning.)

Sophia, who manages the marketing department at her company, put together a team of marketing department employees and employees from the design department to address customer demands for several products. By working together, the design department was able to take input from the marketing team, who then used the design information to craft its marketing campaign for the new versions of the products. Their successful efforts were the result of _____ and delivered value to the customer. contingency planning core competence allocating resources synergy

synergy (Synergy exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone. See Section 5.9: What Is Strategic Management?)

Talia is a recruiter in her company's human resources department. Her manager describes the goal of Talia's job as _____ to reflect the importance of the human factor in an organization's success. workforce development task force formation training talent acquisition

talent acquisition (Today, recruiting is sometimes referred to as talent acquisition to reflect the importance of the human factor in an organization's success. Recruiting is defined as the activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied. See Section 9.4: Finding the Right People.)

At Acme Accounting, there are six levels of management between entry-level accountants and the CEO. At Zenith Public Relations, there are three organizational levels from entry-level associates and the CEO. When comparing the two, Acme has a _____ organization structure, and Zenith has a _____ organization structure. wide; tall tall; flat wide; flat narrow; wide

tall; flat (A tall structure has an overall narrow span and more hierarchical levels. A flat structure has a wide span, is horizontally dispersed, and has fewer hierarchical levels. See Section 7.1: Organizing the Vertical Structure.)

The most widespread trend in departmentalization in recent years has been the: divisional approach. matrix approach. functional approach. team-based approach.

team-based approach. (The team approach, probably the most widespread approach in recent years, gives managers a way to delegate authority, push responsibility to lower levels, and be more flexible and responsive in a complex and competitive global environment. See Section 7.2: Departmentalization.)

Taylor works at a chemical processing plant. She monitors the sodium levels of the solution via computer that tests the formula as it moves through the process. If it is not within limits, the computer automatically adjusts the flow. This production process is characterized by a high degree of: work specialization. project management. technical complexity. relational coordination.

technical complexity. (The difference among the three manufacturing technologies—small-batch and unit production, large-scale and mass production, and continuous process production—is called technical complexity. Technical complexity is the degree to which machinery is involved in the production to the exclusion of people. See Section 7.4: Factors Shaping Structure.)

In the business world, recruiting is: forecasting human resource needs and the projected matching of individuals with expected vacancies. a systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job, as well as about the context within which the job is performed. the process where an organization and an individual attempt to match the needs, interests, and values that they offer each other. the activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied.

the activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied. (Recruiting is defined as the activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied. Today, recruiting is sometimes referred to as talent acquisition to reflect the importance of the human factor in an organization's success. See Section 9.4: Finding the Right People.)

New analytical software programs that automate many programmed decisions are an application of: bounded rationality. satisficing. the classical model. the administrative model.

the classical model. (The classical model can be applied to programmed decisions and to decisions characterized by certainty or risk because relevant information is available and probabilities can be calculated. See Section 6.2: Decision-Making Models.)

Studies demonstrate that business performance is most successful when: goals of innovation and a rapidly changing environment are associated with a mechanistic system. the company's structure is aligned well with its strategic intent and the needs of the environment. using a structure that emphasizes the formal, vertical hierarchy. goals of efficiency and a stable environment are associated with an organic system.

the company's structure is aligned well with its strategic intent and the needs of the environment. (Studies demonstrate that business performance is strongly influenced by how well the company's structure is aligned with its strategic intent and the needs of the environment, so managers strive to pick strategies and structures that are congruent. See Section 7.4: Factors Shaping Structure.)

The limitations of planning are even more problematic when: action plans have not been routinely predetermined. employees have been provided with clear goals. the environment is turbulent. goals and plans are used as standards of assessment.

the environment is turbulent. (Managing under turbulent conditions of change and uncertainty requires a degree of flexibility. Managers who believe in "staying the course" will often stick with a faulty plan even when conditions change dramatically. See Section 5.4: Benefits and Limitations of Planning.)

In the context of managing the implementation of a change, _____ is most likely to be used when a change can get bogged down in squabbling among departments or contradictory orders from lower-level managers. negotiation employee participation top management support communication

top management support (Top management support symbolizes to all employees that a change is important for an organization. Top management support is especially important when the change involves multiple departments or when resources are being reallocated among departments. See Section 8.4: Implementing Change.)

Roger's father has just been diagnosed with an aggressive cancer and the prognosis is not good. Roger has asked his employer for time off to be with his father to take him to treatments and care for him at home as much as possible. Once Roger's vacation time is used up, he may apply for leave under the Family and Medical Leave Act, which requires his employer to provide: up to 12 weeks unpaid leave for family emergency. unpaid leave for the amount of time designated for a specific situation. six weeks of paid leave and indefinite unpaid leave. up to six months of unpaid leave for family emergency.

up to 12 weeks unpaid leave for family emergency. (The Family and Medical Leave Act (FMLA) of 1993 requires employers to provide up to 12 weeks unpaid leave for childbirth, adoption, or family emergencies. See Section 9.2: The Impact of Federal Legislation on HRM.)

Salima and Stefan own a small engineering company. Their customers generally want a small manufacturing machine for custom orders. Salima and Stefan do all the designing. They then send their designs out to a fabrication shop that makes the machine. They outsource their accounting and marketing functions to companies specializing in those activities for small businesses. Their company functions quite well with this _____ structure. matrix functional divisional virtual network

virtual network (The virtual network structure means that a firm subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization, which allows it to concentrate on what it does best and contract out other activities to companies with distinctive competence in those specific areas. See Section 7.2: Departmentalization.)

Yuan works at a dental center where he is a dental hygienist. The tasks at the dental center are divided among his coworkers who are either lab technicians or administrative personnel. These separate jobs are part of the organization's: work specialization. centralization. span of management. chain of command.

work specialization. (Work specialization, sometimes called division of labor, is the degree to which organizational tasks are subdivided into separate jobs. The separation of production tasks in a water bottling plant into bottling, quality control, and maintenance best exemplifies work specialization. See Section 7.1: Organizing the Vertical Structure.)

Playyonic is a gaming console manufacturer that manufactures compact high-end gaming devices. None of Playyonic's competitors have been able to meet its standard. This is most likely an example of Playyonic's _____. a. corporate mission b. corporate culture c. customer capital d. core competence

d. core competence (This is most likely an example of Playyonic's core competence. A core competence is something that an organization does particularly well in comparison to others. See 5-8: What Is Strategic Management?)

An organization's _____ is at the top of its goal hierarchy. a. tactical plan b. ad hoc goal c. strategic goal d. mission statement

d. mission statement (An organization's mission statement is at the top of its goal hierarchy. See 5-1: Goal Setting and Planning Overview)

Goals that are precise and measurable and carried out by departments, work groups, and individuals are called _____. a. strategic goals b. tactical goals c. official goals d. operational goals

d. operational goals (The results expected from departments, work groups, and individuals are operational goals. They are precise and measurable. See 5-2: Goal Setting in Organizations)

First and foremost, goals need to be _______. a. flexible b. have no effect or reward for employees c. not challenging d. specific and measurable

d. specific and measurable (First and foremost, goals need to be specific and measurable. When possible, operational goals should be expressed in quantitative terms. See 5-3: Operational Planning)

In a _____ approach, planning experts work with managers in major divisions or departments to develop their own goals and plans. performance management decentralized planning turbulent environment approach crisis management

decentralized planning (Decentralized planning means that planning experts work with managers in major divisions or departments to develop their own goals and plans. See Section 5.6: Innovative Approaches to Planning.)

Operational plans and goals focus on: outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals. defining the action steps by which the company intends to attain strategic goals. describing where the organization wants to be in the future. precise and measurable results expected from departments, work groups, and individuals.

defining the action steps by which the company intends to attain strategic goals. (Operational plans specify the action steps toward achieving operational goals and support tactical activities. See Section 5.2: Goal Setting in Organizations.)

At Paul's manufacturing facility, employees' innovative ideas and efforts are rewarded. Paul's company is invested in a _____ strategy. differentiation cost leadership focus market share

differentiation (A differentiation strategy seeks to distinguish the organization's products and services from those of others in the industry and includes rewarding employee innovation. See Section 5.11: Formulating Business-Level Strategy.)

As a manager, Perry strives to build an alliance of people who support the company's goals and can influence other people to accept and work toward them. In these efforts, Perry is employing which of the following processes? Contingency planning Planning Groupthink Coalitional management

Coalitional management (Powerful, motivating goals that unite people are typically established not by a single manager, but by developing a coalition. Coalitional management involves building an alliance of people who support a manager's goals and can influence other people to accept and work toward them. See Section 5.1: Goal Setting and Planning Overview.)

Which of the following is the correct order for the steps of the organizational planning process? Monitor and learn, develop the plan, translate the plan, execute the plan, plan operations Translate the plan, execute the plan, monitor and learn, develop the plan, plan operations Develop the plan, translate the plan, plan operations, execute the plan, monitor and learn Plan operations, develop the plan, translate the plan, monitor and learn, execute the plan

Develop the plan, translate the plan, plan operations, execute the plan, monitor and learn (The organizational planning process is circular: (1) develop the plan; (2) translate the plan; (3) plan operations; (4) execute the plan; (5) monitor and learn; at which point the process begins anew. See Section 5.1: Goal Setting and Planning Overview.)

_____ provides the starting point of planning and defines the purpose of the organization. Brainstorming Goal setting A blueprint A planning review

Goal setting (Goal setting is where planning starts. Goals are important because organizations exist for a purpose, and goals define and state that purpose. See Section 5.1: Goal Setting and Planning Overview.)

Which of the following statements best describes the differences between goals and plans? Goals are desired future circumstances or conditions, while plans specify the necessary resource allocations, schedules, tasks, and other actions. Goals are essential in an uncertain environment, while plans are useless within that same context. Goals are based on assumptions, whereas plans are based on factual evidence. Goals are the sole purpose of planning, while plans define and state specific purposes.

Goals are desired future circumstances or conditions, while plans specify the necessary resource allocations, schedules, tasks, and other actions. (A goal is a desired future circumstance or condition that an organization attempts to realize. Goals are important because organizations exist for a purpose, and goals define and state that purpose. A plan is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions. Goals specify future ends; plans specify today's means. See Section 5.1: Goal Setting and Planning Overview.)

Strategic management can best be described by which of the following statements? It refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between an organization and its environment so as to achieve organizational goals. It is defining a desired future circumstance or condition and the blueprint that specifies the necessary resource allocations, schedules, tasks, and other actions. It refers to the process of reading an uncertain future and taming a turbulent environment. It is an activity in which managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.

It refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between an organization and its environment so as to achieve organizational goals. (Strategic management refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between an organization and its environment so as to achieve organizational goals. The first step in strategic management is to define an explicit strategy. See Section 5.9: What Is Strategic Management?)

Quinn is a high-level manager with Juiciest Juices brand juice drinks. The company wants to introduce their product to the Italian market. Their preference is to use mainly local Italian crops to produce the juice. This will help boost the Italian economy, along with benefitting their advertising plan. However, there is doubt that a specific variety of berry will grow well in Italy. Quinn has taken it upon herself to sample native berries and has found one with a similar flavor profile that could work as a replacement. What kind of planning is Quinn demonstrating? a. Contingency planning b. Strategic planning c. Single-use planning d. Tactical planning

a. Contingency planning (Contingency planning identifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions. See 5-5: Planning for a Turbulent Environment)

In the context of the BCG (Boston Consulting Group) matrix, the _____ exists in a mature, slow-growth industry but is a dominant business in the industry, with a large market share. a. cash cow b. star c. question mark d. dog

a. cash cow (In a BCG matrix, the cash cow exists in a mature, slow-growth industry but is a dominant business in the industry, with a large market share. See 5-10: Formulating Corporate-Level Strategy)

A broad statement of where an organization wants to be in the future and pertains to the organization as a whole, rather than to specific divisions or departments, is referred to as ________. a. strategic goals b. ad hoc goals c. tactical goals d. operational goals

a. strategic goals (Strategic goals are broad statements of where an organization wants to be in the future and pertain to the organization as a whole, rather than to specific divisions or departments. See 5-2: Goal Setting in Organizations)

Kia, a top-level manager in a software firm, is allocating the company's resources to meet the organization's long-term goals. She is also defining the organization's activities for the next five years. In this scenario, Kia is most likely contributing to developing the company's _____. a. strategic plan b. tactical plan c. ad hoc plan d. single-use plan

a. strategic plan (In this scenario, Kia is most likely contributing to developing the company's strategic plan. Strategic goals are broad statements describing where an organization wants to be in the future. Strategic plans are the action steps by which an organization intends to attain strategic goals. See 5-2: Goal Setting in Organizations)

Ron, the general manager of a chain of fitness accessories, gave his employees the task of creating a breakthrough fitness device. This task was challenging yet clear, and it motivated his employees to innovate. This is most likely an example of a _____. a. stretch goal b. strategic plan c. proximal goal d. succession plan

a. stretch goal (This is most likely an example of a stretch goal. Stretch goals are reasonable yet highly ambitious and compelling goals that energize people and inspire excellence. See 5-6: Innovative Approaches to Planning)

Which of the following is a difference between programmed decisions and nonprogrammed decisions? a. Unlike programmed decisions, nonprogrammed decisions concern the types of skills required to fill certain jobs. b. Unlike nonprogrammed decisions, programmed decisions are made in response to recurring organizational problems. c. Unlike nonprogrammed decisions, programmed decisions are made in response to situations that are unique and largely unstructured. d. Unlike programmed decisions, nonprogrammed decisions concern the maintenance of a regular supply of raw materials.

b. Unlike nonprogrammed decisions, programmed decisions are made in response to recurring organizational problems. (In an organization, programmed decisions are made in response to recurring problems, whereas nonprogrammed decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization. See 6-1: Types of Decisions and Problems)

Boeing's decision to build the 707 after World War II would be considered a _______. a. aberrant decisions b. nonprogrammed decisions c. ambiguous decisions d. programmed decisions

b. nonprogrammed decisions (Nonprogrammed decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization. See 6-1: Types of Decisions and Problems)

In a food manufacturing company, the decision to reorder raw materials when inventories drop to a certain level is an example of a(n) _____. a. aberrant decision b. programmed decision c. unique decision d. nonprogrammed decision

b. programmed decision (In a food manufacturing company, the decision to reorder raw materials when inventories drop to a certain level is an example of a programmed decision. Programmed decisions involve situations that have occurred often enough to enable decision rules to be developed and applied in the future. See 6-1: Types of Decisions and Problems)

Alyson is an employee at Who'd of Thunk It Games, a company that was just purchased by a competitor. The goals set forth by the new management team are extremely ambitious and are placing seemingly insurmountable goals for the employees. Alyson and some other employees have resorted to stealing some ideas from another company and passing them off as their own. Which best describes how the company's approach is affecting the employees? a. Rigidity in a turbulent environment b. Creating a false sense of certainty c. Creating too much pressure d. Stifling intuition and creativity

c. Creating too much pressure (If too much pressure is put on managers and employees to meet overly ambitious goals, they may resort to dysfunctional or unethical behavior to meet their targets. See 5-4: Benefits and Limitations of Planning)

_____ is a system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. a. Autocratic leadership b. Authoritarian management c. Management-by-objectives d. Centralized leadership

c. Management-by-objectives (Management-by-objectives (MBO) is a system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. See 5-3: Performance Management)

What does it mean to think strategically? a. Identify important factors in the environment and define a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions. b. Work employees harder to get faster results. c. Take the long-term view and to see the big picture, including the organization and the competitive environment, and consider how they fit together d. Look at the short term, immediate view and climate to make changes

c. Take the long-term view and to see the big picture, including the organization and the competitive environment, and consider how they fit together (Thinking strategically means taking the long-term view and to see the big picture. See 5-7: Strategy)

Victoria is a top executive working with the managers in the major divisions of a multinational corporation to develop their own goals. This is most likely an example of _____. a. top-down leadership b. autocratic leadership c. decentralized planning d. centralized planning

c. decentralized planning (This is most likely an example of decentralized planning. Decentralized planning means that top executives or planning experts work with managers in major divisions or departments to develop their own goals and plans. See 5-6: Innovative Approaches to Planning)

In the context of the BCG (Boston Consulting Group) matrix, the _____ is a poor performer that has only a small share of a slow-growth market. a. cash cow b. question mark c. dog d. star

c. dog (In a BCG matrix, the dog is a poor performer. It has only a small share of a slow-growth market. See 5-10: Formulating Corporate-Level Strategy)

Louis, in setting productivity goals for his employees, uses his knowledge of his employees, past performance and output data, as well as upper management's strategic goals in order to set goals that are: easily achieved. qualitative not quantitative. highly specific and detailed. challenging but realistic.

challenging but realistic. (Managers should set goals that are challenging but realistic. When goals are unrealistic, they set employees up for failure and lead to a decrease in employee morale. However, if goals are too easy, employees may not feel motivated. See Section 5.3: Operational Planning.)

In for-profit firms, strategic planning typically pertains to_____; whereas in nonprofit organizations, strategic planning pertains to _____. the short-term view; the long-term view competitive actions in the marketplace; events in the external environment tough choices and trade-offs that define strategy; decisions made solely by the CEO the big picture view; retrenchment options

competitive actions in the marketplace; events in the external environment (In for-profit firms, strategic planning typically relates to competitive actions in the marketplace. In nonprofit organizations such as the American Red Cross or the Salvation Army, strategic planning applies more to events in the external environment. See Section 5.8: Thinking Strategically.)

Carolyn's CEO has tasked her with creating a blueprint that specifies the resource allocation schedules and other actions necessary for attaining the company's stated goals. The CEO has asked for a: mission statement. contingency plan. list of strategic goals. plan.

plan. (A plan—the blueprint for accomplishing a company's stated goals—follows the establishment of a mission statement and strategic goals. See Section 5.1: Goal Setting and Planning Overview.)

In contingency planning, the activity of _____ is meant to expand the range of future possibilities managers should consider and prepare for by looking at current trends and discontinuities and visualizing where they might lead. synergizing scenario building benchmarking retrenchment

scenario building (An extension of contingency planning is a forecasting technique known as scenario building. Scenario building involves looking at current trends and discontinuities and visualizing future possibilities. See Section 5.5: Planning for a Turbulent Environment.)

Rapport Investing Company has a contingency plan in place to deal with clients and to respond to market changes in case of a sudden dramatic drop in the Dow Jones Index. As part of the contingency planning, management also engages in _____ as it looks at leading economic indicators, political issues, and global markets and tailors its plans to various situations based on these variables. satisficing scenario building benchmarking point-counterpoint

scenario building (An extension of contingency planning is a forecasting technique known as scenario building. Scenario building involves looking at current trends and discontinuities and visualizing future possibilities. See Section 5.5: Planning for a Turbulent Environment.)

Daniel's pharmaceutical company developed and marketed a new drug to halt the progression of Alzheimer's and other forms of dementia. Orders for it are growing monthly to the point where it now has the largest share of the market. This product falls in the _____ category of the BCG matrix; therefore, the company should increase investment in it for future growth and profits. cash cow question mark star dog

star (In the BCG matrix, the star is important because it has additional growth potential, and profits should be plowed into the business as investment for future growth and profits. It has a large market share in a rapidly growing industry. See Section 5.10: Formulating Corporate-Level Strategy.)

The _____ is/are broad statement(s) describing where the organization wants to be in the future. mission formal structure strategic goals competitive advantages

strategic goals (Strategic goals, sometimes called official goals, are broad statements describing where the organization wants to be in the future. These goals pertain to the organization as a whole rather than to specific divisions or departments. See Section 5.2: Goal Setting in Organizations.)

Taylor has established several departmental goals, including maintaining a 40 percent market share and maintaining cost of production ratios. These goals define the outcomes the department must achieve in order for the organization to reach its overall goals and are known as _____ goals. tactical departmental operational strategic

tactical (Tactical plans define what major departments and organizational subunits will do to implement the organization's strategic plan. See Section 5.2: Goal Setting in Organizations.)

A CEO who is adept at thinking strategically: is reluctant to revamp strategies after committing to a strategic plan. thinks about how the environment fits the organization. takes the long-term view and sees the big picture. makes all the strategic decisions for a company.

takes the long-term view and sees the big picture. (Strategic thinking means to take the long-term view and to see the big picture, including the organization and the competitive environment, and consider how they fit together. See Section 5.8: Thinking Strategically.)

Regina is a CEO at a large advertising agency. Because of the fierce competition in the advertising industry, Regina plans strategy carefully, weighing trends, technology, and economics. Her company's success depends on: sticking with tried and true approaches to advertising campaigns. an aggressive pursuit of large client accounts. her conservative approach to keeping current clients. the strategies she chooses and how effectively she executes them.

the strategies she chooses and how effectively she executes them. (Differences in the strategies managers choose and how effectively they execute them help explain why one organization succeeds and one struggles. See Section 5.8: Thinking Strategically.)