Management exam 3
Which of the following is true of transformational leaders? a. They do what is best for themselves instead of their organizations b. They make sure that employees do not have to make any sacrifices for their organization c. They have moral standards that put their best interst before everyone else's d. They are able to make their followers feel that they are a vital part of their organization
They are able to make their followers feel that they are a vital part of their organization
Why does John Mackey think entrepreneurs create businesses?
They begin their business with the goal of improving society
Dimon, the CEO of J.P Morgan, said of his company's trading loss: "We will admit, we will fix it and move on." If Dimon's idea of "moving on" involves encouraging employees to do the least amount possible to meet social expectations, the company will be using _____________ strategy for social responsibility a. a defensive b. an accommodative
a defensive
The fact that there is a criminal investigation pending against Johnson & Johnson suggests that regulators feel that the company is not meeting its obligations at ________ level of corporate responsibility a. an economic b. a legal c. a discretionary
a legal
A(n) ___________ is a social responsiveness strategy in which a company accepts responsibility for a problem and does all that society expects to solve that problem a. accommodative strategy b. defensive strategy c. discretionary strategy d. reactive strategy
accommodative strategy
What question does stakeholder theory recommend companies ask when determining their responsibilities to stakeholders?
"who is affected by your decision?"
Idealized Attributes
(Transformational) Builds trust: Leader's conduct consistent with underlying ethics, principles and values, considering others before themselves. Being someone they can admire and trust
Idealized influence
(Transformational) Coaching/Actions speak louder than words: walking the walk
What are the 2 questions discussed in the Ethical Postures school?
1. Whose interest should a corporation serve? 2. To whom should a corporation be responsive in oder to best serve that interest?
Who should be responsible for environmental issues and programs in a company?
CEO's
What is "green arthritis"?
Environmental managers who once put forward a "Save the Planet" mantra that comforted the general public, now use "Don't rock the boat" as a motto. These once creative leaders nowadays put a positive spin on company performance in an annual report on recycled paper and assure their management that all necessary systems are in place and regulatory compliance is improving
Example- An automobile dealership that has always had success with homemade advertisements finds it difficult to switch to a professional advertising agency, despite the fact that customers are becoming more sophisticated. Decline Stage- __________ a. Crisis b. Inaction c. Dissolution
Inaction
Statement-
Prin
Fill in the blank and help Jennifer by selecting the correct type of plan that match the given statement: The Sales Division will routinely monitor the percentage of new clients underserved populations a. Strategic b. Tactical c. Mission statment d. Operational
Tactical
A(n) _______ is written test that estimates job applicants' honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors a. overt integrity test b. personality-based integrity test c. situation-based integrity test d. covert integrity test
overt integrity test
To determine whether a control process is worthwhile, a company must consider its _______. a. dynamic costs b. regulation costs c. feasibility costs d. operational costs
regulation costs
If company employees are engaged in unethical activity, the U.S. Sentencing Commission can impose a base fine up to $72.5 million, ___________ company managers knew about the unethical behavior a. whether or not b. as long as
whether or not
Identify the order in which the steps are usually taken: -Improve program after violations -Delegate decision-making authority only to ethical employees -Establish standards and procedures -Enforce standards consistently and fairly -Train employees on standards and procedures -Encourage employees to report violations -Assign upper-level managers to be in charge a. 7-3-1-6-5-4-2 b. 4-1-2-7-3-6-5 c. 5-2-3-6-1-4-7 d. 1-2-3-4-5-6-7
7-3-1-6-5-4-2
Which of the following statements is true of standards? a. A company's standard must always be the same as its competitors' b. A standard should always enhance the productivity of a firm's employees. c. A standard may have to be changed if it does not help in achieving company goals d. A standard should not align with employees' actual performance
A standard may have to be changed in it does not help in achieving company goals
Current ratio: ________ Quick (acid test) ratio: (Current Assets - Inventories)/ Current Liabilities a. Current Assets / Current Liabilities b. Net Income / Owner's Equity c. Total Liabilities / Total Equity d. Accounts Receivable / (Annual Net Credit Sales by 365)
Current Assets / Current Liabilities
The operation manager of a car manufacturing company in the U.S. wants to set up factories in three other countries by the end of the current year. After he has set this goal, which of the following is the next step he should take in order to achieve this goal? a. Track progress toward goal achievement b. Develop commitment to the goal c. Set up effective action plans d. Analyze the profits the factories will make
Develop commitment to the goal
___________ is a company's social responsibility to not violate accepted principles of right and wrong when conducting its business a. Discretionary responsibility b. Economic responsibility c. Legal responsibility d. Ethical responsibility
Ethical responsibility
Example - A financial services firm decides to downsize in oder to save money rather than understanding the need to create new products for a changing demographic Decline stage - ___________ a. Inaction b. Blinded c. Faulty action
Faulty action
_______ is a change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology. a. Discontinuous change b. Generational change c. Results-driven change d. Incremental change
Generational change
When writing goals, it is helpful to remember the acronym SMART. For purposes of this problem, SMART means that effective goals are: 1. Specific 2. Measurable 3. Attainable 4. Result-oriented 5. Time-bound Using your knowledge of SMART goals, select the best goal a. I will save $40,000 by January 3, 2014 to use a down payment on a home b. I will pay off my credit cards so I can start saving money for a house c. I will start money toward a new house next week d. I will buy a new house soon so my family will have a place to live
I will save $40,000 by January 3, 2014 to use a down payment on a home
___________ is the ability to anticipate, envision, maintain flexibility, and work with others to initiate changes that will create a positive future for an organization a. Strategic leadership b. Transactional leadership c. Repressive leadership d. Autocratic leadership
Strategic leadership
In the context of organization decline, which of the following is true of the dissolution stage? a. The managers may be waiting to see if the problems will correct themselves b. Cutbacks and layoffs will have reduced the level of talent among employees c. Dissolution is likely to occur unless a company completely reorganizes the way it does business d. The company is dissolved through bankruptcy proceedings
The company is dissolved through bankruptcy proceedings
When a manager says, "You will do this, or I'll fire you!" he is using ________ to change behavior a. technological discontinuity b. generational change c. coercion d. testing
coercion
Changing a warranty policy so that 10 people are denied claims of $10,000 each has a larger ___________ than changing the same policy so that 1,000 people are denied claims of $10 each a. property deviance b. concentration of effect c. shareholder model d. economic responsibility
concentration of effect
Components of trust
Integrity (most critical) Competence Consistency Loyalty Openness Vision/empathy (leaders)
________ means that transformational leaders encourage followers to be creative and innovative, to question assumptions, and to look at problems and situations in new ways even if their ideas are different from those of leaders a. Idealized influence b. Inspirational motivation c. Individualized consideration d. Intellectual stimulation
Intellectual stimulation
Which of the following statements is true of planning? a. it creates an environment of uncertainty b. it discourages employees from working hard c. it intensifies the effort put in by managers and employees d. it fixes all organizational problems
It intensifies the effort put in by managers and employees
Which of the following statements is true of the experiential approach to innovation? a. It assumes that incremental innovation can be planned using a series of steps b. It uses intuition and hands-on experience to reduce uncertainty and accelerate learning c. It tests a prototype of a new product or service and then builds and tests the improved prototype d. It is used to mange innovation in more certain environments during periods on incremental change
It uses intuition and hands-on experience to reduce uncertainty and accelerate learning
Did the Ben & Jerry's "Rainforest Crunch" program work?
It worked at the beginning until they made the problem worse
Complex Adaptive Systems Theory (CAS)
Many agents Many interactions Decentralization Simple rules lead to emergent properties
_________ is defined as the regulation of workers' behavior and decisions though widely shared organizational values and beliefs. a. Objective control b. Concertive control c. Bureaucratic control d. Normative control
Normative control
Which of the following is true of the S-curve pattern of innovation of a product? a. The flat slope indicates that increased effort brings only small improvements in technological performance b. The steep slope indicates that further efforts to develop this particular technology will result in only small increases in performance c. The flat slope indicates that small amounts of effort will result in significant increases in performance d. The steep slope indicates that the performance limits of that particular technology are being reached
The flat slope indicates that increased effort brings only small improvements in technological performance
Which of the following is true of design competition? a. A new dominant design prevents a company from competitively selling its products or makes it difficult to do so b. The patterns of innovation over time create sustainable competitive advantage c. A scientific advance of existing technologies creates a significant breakthrough in performance of function d. The older technology usually improves significantly in response to the competitive threat from the new technologies
The older technology usually improves significantly in response to the competitive threat from the new technologies
Which of the following is a characteristic of charismatic leaders? a. They encourage followers to make sacrifices for their organization because they know that they will prosper when the organization prospers b. They transfer their organizations by getting their followers to accomplish more than they intended c. The generate awareness and acceptance of a group's purpose and get employees to see beyond their own needs d. They articulate a clear vision for the future that is based on strongly held values or morals
They articulate a clear vision for the future that is based on strongly held values or morals
Which of the following is an error that managers make in the change phase? a. They under communicate the vision by a factor of ten b. They do not create a powerful enough coalition c. They do not establish a great enough sense of urgency d. They do not declare victory too soon
They under communicate the vision by a factor of ten
Which of the following is true of managers? a. They see themselves as promoters of change and challengers of the status quo b. They are concerned with control and limiting the choices of others c. They are critical to inspiring employees and setting long-term goals d. They focus on vision, mission goals, and objectives
They are concerned with control and limiting the choices of others
Budgets are a type of ________ plans a. tactical b. visionary c. strategic d. operational
Operational
Fill in the blank and help Jennifer by selecting the correct type of plan that match the given statement: Each sales agent will personally contact three potential clients in an underserved community every day a. Strategic b. Tactical c. Mission statment d. Operational
Operational
_________ planning allows companies to maintain flexibility by making small, simultaneous investments in many alternative plans a. Traditional b. Options-based c. Funds-based d. Strategic
Options-based
It takes _______ to turn a creative idea into a salable product a. change agent b. organizational innovation c. coercion d. technological discontinuity
Organizational innovation
Management-By-Execption
Passive/Active - putting out fires: takes corrective actions. only talks to people when they're doing something wrong
Management by objectives is a management technique often used to develop and carry out ________ a. standing plans b. operational plans c. tactical plans d. strategic plans
Tactical plans
Why do proponent of stakeholder theory believe companies should include the needs of more than stockholders/owners in their decision making?
Proponents claim that they all contribute to the success of the corporation therefore have responsibility to them
A disadvantage of feedback is that: a. it is too general to apply to most situations b. it always comes after the fact c. most people are too sensitive to receive feedback d. it makes the control process inefficient
it always comes after the fact
________ is choosing a goal and developing a method or strategy to achieve a goal a. leading b. organizing c. controlling d. planning
planning
Jason, a police officer, strongly believes in justice and does not accept bribes from others. According to Kohlberg's stages of moral development, Jason is operating at the _______ of moral development a. post conventional level b. conventional level c. pre conventional level d. unconventional level
post conventional level
According to Kohlberg's stages of moral development, people at the ___________ make decisions that are based on selfish reasons a. unconventional level b. post conventional level c. pre conventional level d. conventional level
pre conventional level
Rafaelo always gave his used clothing and household items to Goodwill because he felt that throwing them away would harm people who has less than he did. Rafaelo's actions are guided by the ___________ a. property deviance b. principle of distributive justice c. principle of personal virtue d. ethics
principle of distributive justice
Under the ________, an individual should never take any action that harms the least fortunate people in some way. a. principle of personal virtue b. principle of government requirements c. principle of distributive justice d. principle of utilitarian benefits
principle of distributive justice
A drawback of planning is that: a. it causes detachment, which leads planners to plan for things they do not understand b. it does not provide direction to managerial activities c. managers tend to put in minimal efforts when following a plan d. planning decreases persistence among employees
it causes detachment, which leads planners to plan for things they do not understand
Which of the following is a disadvantage of planning? a. it decreases the effort put in by managers and employees b. it increases employee turnover c. it discourages employees from working hard for long periods d. it creates a false sense of certainty
it creates a false sense of certainty
Last week, your friend said, "I'm not going to use the company copier to make personal copies. I try never to do things that I wouldn't want publicly reported." Your friend is likely to be guided by the a. principle of personal virtue b. economic responsibility c. property deviance d. shareholder model
principle of personal virtue
The ___________ holds that an individual should never do anything that is not honest, open, and truthful and that he or she would not be glad to see reported in the newspapers or on television a. principle of utilitarian benefits b. principle of distributive justice c. principle of personal virtue d. principle of government requirements
principle of personal virtue
A _________ is a gap between a desired state and an existing state a. minimum threshold b. benchmark c. problem d. condition of certainty
problem
Lydia owns a fashion store for women where the focus is on providing quality customer service. The staff is trained to treat customers with utmost care and provide them with reliable fashion advice. Lydia carefully chooses her staff and appoints people who are attentive, friendly, and have a sense of good fashion. Lydia's store uses ___________. a. normative control b. concertive control c. bureaucratic control d. adaptive control
normative control
When writing goals, it is helpful to remember the acronym SMART. For purposes of this problem, SMART means that effective goals are: 1. Specific 2. Measurable 3. Attainable 4. Result-oriented 5. Time-bound Identify the problem with the following goal: To buy a new set of Michelin tires and change the oil using four quarts of 10W-30 oil in my car by September 15 a. Not specific b. Not result-oriented c. Not measurable d. Not time-bound
not specific
When the control process is described as cybernetic, it mean that: a. the control process encourages managers to look beyond financial standards for performance measurement b. the behaviors and actions of workers in online work communities are regulated c. constant attention to the feedback loop is required to keep a company's activity on course d. the control process is used for gathering information about performance deficiencies before they occur
constant attention to the feedback loop is required to keep a company's activity on course
When employees do not conform to safety standards, _________ has occurred. a. control loss b. cash flow analysis c. standards d. self-control
control loss
According to Kohlberg's stages of moral development, people at the _______ make decisions that conform to societal expectations a. unconventional level b. post conventional level c. pre conventional level d. conventional level
conventional level
servant leadership
organization should be inverted triangle: first priority for leader is service, motivation is to serve
Technological substitution occurs when: a. a new technological design or process becomes the accepted market standard b. customers purchase new products to replace older technologies c. a new technological standard or dominant design is established d. a new dominant design prevents a company from competitively selling it products
customers purchase new products to replace older technologies
Teeny Toys Inc., a chain of toy stores, has decided to donate free toys to orphanages across the United States. This scenario illustrated that the company is aiming at fulfilling its __________ a. economic responsibility b. legal responsibility c. ethical responsibility d. discretionary responsibility
discretionary responsibility
Endoscopic surgery will become the _______ when most physicians prefer it to older, more invasive surgical procedures a. testing b. dominant design c. organizational innovation d. generational change
dominant design
Next month, Stuart's group will use _________ to generate new ideas. Sitting at their computers, group members will type as many ideas as they can in a given time. Stuart will be able to see the ideas of every other team member so he can build on them a. standing plans b. electronic brainstorming c. goal commitment d. maximize
electronic brainstorming
Which school is opposite of the Invisible Hand?
enlightened self-interest
_________ is the degree of concern people have about an ethical issue a. ethical pluralism b. ethical congruence c. ethical intensity d. ethical objectivism
ethical intensity
Joe's __________ were a product of his upbringing and values, and they helped him to know the difference between right and wrong a. economic responsibility b. principle of personal virtue c. ethics d. principle of distributive justice
ethics
Jose is a school teacher. If his students score less than 50% on their class tests, he assigns them extra homework. Jose is using _______. a. feedback control b. reactive control c. feedforward control d. concurrent control
feedback control
Business owners and investors use _______, including inventory turnover and gross profitability margins, to determine how effectively and efficiently a company is using its money a. bureaucratic control b. financial ratios c. customer defections d. cash flow analysis
financial ratios
The tennis player was in state of ________ when his concentration was intense and he felt that he was playing almost effortlessly. Before he knew it, three hours had passed as if they were minutes a. resistance to change b. coercion c. technological discontinuity d. flow
flow
Enrique's ________, to run a 10-minute miles was high -- he ran outside every day, regardless of the weather a. goal commitment b. maximize c. standing plans d. rational decision making
goal commitment
When addressing an issue of __________, managers are more aware of the impact their decision will have on others. a. high ethical intensity b. low personal aggression c. low employee shrinkage d. high workplace deviance
high ethical intensity
Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. this is because delivering a faulty product has a ___________ a. high magnitude of consequences b. low magnitude of influence c. low probability of effect d. high cultural effect
high magnitude of consequences
Once a company compares its actual performance to performance standards, the next step that it should take in the control process it to: a. benchmark b. identify deviations c. set goals d. ensure sub optimization
identify deviations
In a basic model of ethical decision making, after a problem has been identified, the next step is to _________ a. develop alternative solutions b. identify the constituents c. analyze the available options d. diagnose the situation
identify the constituents
KelHouse Corp. specializes in mobile computing devices. It has developed a working model of a cell phone charger that can charge the battery of a cell phone in less than 15 minutes. This model is being tested for design, function, and reliability. In the context of the experiential approach to innovation, the working model is a(n) __________. a. product prototype b. dominant design c. minimum viable product d. augmented product
product prototype
Destroying all the files on a company computer is a form of ____________ a. principle of personal virtue b. property deviance c. economic responsibility d. concentration effect
property deviance
The _________ is more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame a. single-use plan b. purpose statement c. policy d. strategic objective
purpose statement
A(n) _________ is a social responsiveness strategy in which a company does less than society expects a. discretionary strategy b. accommodative strategy c. proactive strategy d. reactive strategy
reactive strategy
Suppose that a company finds out that its actions have caused a major environmental hazard, such as a large oil spill. If the company adopts the ________, you might expect it to deny that the hazard exists or that they were responsible for causing it a. property deviance b. principle of distributive justice c. reactive strategy d. ethics
reactive strategy
According to Lewin, the third step in behavioral change is ________ a. refreezing b. unfreezing c. change
refreezing
Identify the most specific type of standing plans a. procedures b. rules and regulations c. single use plans d. policies
rules and regulations
For a code of ethics to encourage ethical decision making and behavior in a company, _________ a. the management must ensure that the code of ethics does not include customers' and shareholders' interest b. the code must contain broad rather than specific guidelines c. the code of ethics should revolve around legal factors and not organizational values d. the management must develop practical ethical standards and procedures specific to the company's line of business
the management must develop practical ethical standards and procedures specific to the company's line of business
The US Sentencing Commission Guidelines for Organization impose smaller fines on companies that: a. are unaware of the unethical behavior of employees b. have no history of violation of ethical principles c. voluntarily disclose illegal activities to federal authorities d. are not concerned with the ethical behavior of employees
voluntarily disclose illegal activities to federal authorities
When setting standards by benchmarking, the first step is to determine _________. a. which companies to benchmark b. when to benchmark c. how to benchmark d. what to benchmark
what to benchmark
When businesses enhance their reputations by being responsible, they hope to maximize ____________ a. distributive justice b. the opportunity cost of choice c. utilitarian benefits d. willingness to pay
willingness to pay
Individualized consideration
(Transformational) Compassionate leader: demonstrate care and concern for employees. Empathizing with individual needs
Inspirational motivation
(Transformational) Exciting the masses/Sharing the vision: Inspiring others to perform
Intellectual Stimulation
(Transformational) Thinking outside the box: encouraging employees, giving them opportunities
Contingent Rewards
(transactional) Let's make a deal: Makes clear expectations of outcomes and rewards. Spend most time here, use motivation
Describe the 8 questions that should be answered about a company to determine the character of its soul
1. Does the company comply with the law? 2. Does the company have a sense of propriety? 3. How honestly do product claims match with reality? 4. How forthcoming is the company with information? 5. How does the company treat its employees? 6. How does the company handle third-party ethics issues? 7. How charitable is the company? 8. How does the company react when faced with negative disclosures?
Six characters of an effective decision making process
1. Focuses on what is important 2. Logical and consistent 3. Acknowledges both subjective and objective thinking and blends analytical with intuitive thinking 4. Straightforward, reliable, easy to use, and flexible 5. Requires only as much information and analysis as is necessary to resolve a particular dilemma 6. Encourages and guides gathering of relevant information and informed opinion
Outline of what steps effective decision makers use to arrive at a solution to problems - Generate alternative course of action - Define the problem - Identify the decision criteria - Evaluate each alternative - Weight the decision criteria - Compute the optimal decision a. 4-1-2-5-3-6 b. 6-3-5-2-1-4 c. 5-3-1-2-6-4 d. 1-6-2-4-5-3
4-1-2-5-3-6
Fill in the blank with the tactic for managing resistance to change from the options Education and communication - a. A company has a large open-office space in which different types pf employees are scattered almost at random throughout the building. The sales employees decide that they would like to sit together, so they invite the editors, content developers, user experience coordinators, and computer programmers to work with them on developing a new seating chart for the office. b. A new manager is trying to get his company to switch from installing conventional wood fencing to installing concrete freeway barriers. The manager's first step is to set up meetings with all employees to outline changes in the marketplace and show how much more money the company and employees can ear with the new product c. A manger who wants to make a process change involving several different departments appeal to his boss, asking her to star in a video in which she outlines the reasons the change will be good for everyone. d. The fire alarm goes off and your manager says, "Get up from your desk and get out of the office now! I don't care what you're doing, just go!"
A new manager is trying to get his company to switch from installing conventional wood fencing to installing concrete freeway barriers. The manager's first step is to set up meeting with all employees to outline changes in the marketplace and show how much more money the company and employees can earn with the new product
______ is the process of determining how well other companies perform business functions or tasks a. Profiling b. Operant conditioning c. Organization d. Benchmarking
Benchmarking
_________ is defined as the process of identifying outstanding practices, process, and standards in other companies and adapting them to ones company. a. Regulating b. Branding c. Benchmarking d. Profiling
Benchmarking
The time has come to hire a new coach for your local youth hockey team, they Flying Falcons. The city, having won the district championship last year, is justifiably proud of its youth hockey program. Unfortunately, half of the items members feel that the last coach, Morty McGra, was too hard on the team, and had of them feel he was too easy. As a result, everyone is arguing, and most of them are upset and angry with Morty and the league officers. Everyone knows how to play the game, and they all respect the coach, because he's the coach, but now you need a leader that everyone can agree is effective. Who should you hire? a. Aaron is an ex-cop with a take-no-prisoner attitude. He wants to win, and he'll make sure that happens by focusing the players' energies on the game, not on their quarrels. He know that even the best players can benefit from extra training and drills b. Carl is a popular local youth leader who played soccer at a semiprofessional level when he was in college. Carl knows everyone in town, and he has a reputation for being low-key and caring
Carl is a popular local youth leader who played soccer at a semiprofessional level when he was in college. Carl knows everyone in town, and he has a reputation for being low-key and caring
________ is the process used to get workers and managers to change their behaviors and work practices a. Refreezing b. Unfreezing c. Result-driven change d. Change intervention
Change intervention
In the context of organizational decline, which of the following is true of the crisis stage? a. Companies lack the resources to fully change how they run their businesses b. Management recognizes the need to change but still takes no action c. Management announces belt-tightening plans design to cut costs and restore profits d. Key managers fails to recognize the internal or external changes that will harm their organizations
Companies lack the resources to fully change how they run their businesses
____________ is defined as regulation of workers behavior and decision through work group values and beliefs. a. Output control b. Objective control c. Bureaucratic control d. Concertive control
Concertive control
Stelio's reaction to this scenario is: "That's not a good decision. She'll probably wind up needing one, if not several, of her friends to cover for her. How do you think that's going to make them feel?" Which of Kohlberg's levels of development does this response represent? a. conventional b. post conventional c. pre conventional
Conventional
Which of the following is a difference between experimental approach to innovation and compression approach to innovation? a. Experimental approach is used to shorten the time of individual steps, whereas compression approach is used to test the improved product or service prototype b. Experimental approach is used in periods of incremental change, whereas compression approach is used in periods of discontinuous change c. Experimental approach is used in fast-growing environments, whereas compression approach is used in highly uncertain environments d. Experimental approach is used to establish a new dominant design, whereas compression approach is used to improve the function of the existing dominant design
Experimental approach is used to establish a new dominant design, whereas compression approach is used to improve the function of the existing dominant design
___________ is a mechanism for gathering information about performance deficiencies after the occur a. Concurrent control b. Feedback control c. Feedforwards control d. Adaptive control
Feedback control
________ is a psychological state of effortlessness, in which you become completely absorbed in what you are doing and time seems to pass quickly a. Refreezing b. Flow c. Testing d. Design iteration
Flow
What does John Mackey believe great business that last are dedicated to?
Focusing on health and value of the entire interdependent system (like web of stakeholders)
How much money do we bring into the company, before taxes, for every sale we make? a. Average Collections Period b. Gross Profit Margin c. Current Ratio
Gross Profit Margin
Laissez-Faire
Hands-off leadership: absence of leadership. Non manager with management position
Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. This is because delivering a faulty product has a _________ a. high magnitude of consequences b. low probability of effect c. high cultural effect d. low magnitude of influence
High magnitude of consequences
A leader believes in giving individual attention to the needs of followers, creating learning opportunities for them, accepting and tolerating individual differences, and listening to their problems. Which of the following components of transformational leadership is illustrated in this scenario? a. Individualized consideration b. Inspirational motivation c. Idealized influence d. Intellectual stimulation
Individualized consideration
Identify a true statement about self-control system a. It allows managers to monitor workers easily b. It allows everyone to do whatever he or she wants c. It does not restrict workers with boundaries d. It does not result in anarchy
It does not result in anarchy
Which of the following best defines an incremental change? a. It is the purchase of new technologies to replace older ones b. It is a phase in which companies innovate by lowering the cost and improving the function and performance of the dominant design c. It is the inability of a company to competitively sell its products because it relies on old technology or a non dominant design d. It is a phase of a technological cycle characterized by technological substitution and design competition
It is a phase in which new companies innovate by lowering the cost and improving the function and performance of the dominant design
Which of the following best defines the General Electric Workout? a. It is a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems b. It is an approach to innovation that assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation c. It is a philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance d. It is based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology
It is a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems
Which of the following is an argument put forth by economists Milton Friedman? a. It is socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes and charitable organizations b. it it unethical to take any action that is not in an organization's long-term self-interest c. A law represents the minimal more standards of society, so an individual should never take any action that violated the law d. An individual's ethical decision is based on his or her level of moral development
It is socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes and charitable organizations
Which of the following best defines result-driven change? a. It is the change created quickly by focusing on the measurement and improvement of results b. It is the phase of a technological cycle in which companies innovate by lowering costs and improving the function and performance of the dominant technological design c. It is the change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology d. It is the phase of a technological cycle characterized by technological substitution and design competition
It is the change created quickly focusing in the measurement and improvement of results
Which of the following best defines technological discontinuity? a. It is the phase of innovation stream in which a scientific advance of unique combination of existing technologies creates a significant breakthrough in performance or function b. It is an approach to innovation that assumes a highly uncertain environment and uses intuition and hands-on experience to reduce uncertainty and accelerate learning and understanding c. It is a new technological design or process that becomes that accepted market standard d. It is the inability of a company to competitively sell its products because it relies on old technology or a non dominant design
It is the phase of an innovation stream in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance or function
Which of the following defines leadership? a. It is the process of influencing others to achieve group organizational goals b. It is the step taken by an organization to create employment opportunities for minorities c. It is the process of changing behavior by changing the consequences that follow behavior d. It is the perceived fairness of the process used to make reward allocation decisions
It is the process of influencing others to achieve group or organizational goals
Which of the following statements about feedforward control is true? a. It represents the extent to which it is possible to implement each step in the control process b. It is also known as concurrent control c. It provides information about performance deficiencies by monitoring inputs rather than outputs d. It is a mechanism for gathering information about performance deficiencies after the occur
It provides information about performance deficiencies by monitoring inputs rather than outputs
Full range leadership model
Leaders increase effectiveness by changing balance of behaviors away from transactional towards transformational
Which of the following is a function of leaders? a. Leaders solve the problems that employees face b. Leaders try to control and limit choices for others c. Leaders focus on the means of getting things done d. Leaders inspire people and take a long-term view
Leaders inspire people and take long-term view
Fill in the blank and help Jennifer by selecting the correct type of plan that match the given statement: We will actively seek to acquire an East Coast life-insurance company that has a diverse clientele a. Strategic b. Tactical c. Mission statement d. Operational
Mission statement
Can a customer trust a firm simply because it has adopted a posture of social responsibility?
No
When writing goals, it is helpful to remember the acronym SMART. For purposes of this problem, SMART means that effective goals are: 1. Specific 2. Measurable 3. Attainable 4. Result-oriented 5. Time-bound Identify the problem with the following goal: To erect a four-foot high stone retaining wall around the outer perimeter of the pool a. Not measurable b. Not time-bound c. Not result-oriented d. Not specific
Not time-bound
Common Decision-making errors and biases
Overconfidence Immediate gratification Anchoring effect Selective perception Confirmation Framing Availability Representation Randomness Sunk costs Self-serving Hindsight
Power
Potential to influence others' behaviors and attitudes
Statement- People who are in the business community have the right to make money. I don't think it is ethical for any individual to take that freedom away from me or my company. Ethical principle - a. Principle of long-term self-interest b. Principle of utilitarian benefits c. Principle of individual rights
Principle of individual rights
________ is the social, psychological, cultural, or physical distance of a decision maker from those affected by his of her decisions a. Probability of effect b. Ethical variance c. Proximity of effect d. Ethical congruence
Proximity of effect
When ten customers of Niall's Eatery fell seriously ill after dining at the restaurant, the issue was noticed by the public. The public demanded that the restaurant's kitchen be thoroughly inspected and the patients be compensated. However, the management at Naill's Eatery denied all claims that the customers had fallen ill by consuming the food served by the restaurant. Furthermore, the management was against any inspection on the kitchen. Which of the following social responsiveness strategies is the restaurant using? a. Reactive strategy b. Defensive strategy c. accommodative strategy d. proactive strategy
Reactive strategy
_______ are the costs associated with implementing or maintaining control a. Conversion costs b. Sunk costs c. Regulation costs d. Value costs
Regulation costs
__________ is a process wherein each decision criterion is compared directly with every other criterion a. Absolute comparisons b. Benchmarking c. Satisficing d. Relative comparisons
Relative comparisons
Daniel has started a small shoe manufacturing company. He does not want the best equipment at the moment, so he is using equipment that is good enough to work with. In this scenario, Daniel is __________ a. maximizing b. discounting c. satisficing d.specializing
Satisficing
Adaptive advantages of CAS
Robustness Error tolerance Self-repair Ease of implementation Simple agents
At a canning factory, new employees are instructed to wear a certain type of uniform while working around the canning machines. The description of the uniform is very detailed and specific. Which of the following kinds of standing plans is described in this scenario? a. Purpose statements b. Norms c. Rules and regulations d. Policies
Rules and regulations
Which of the following statements best explains the carrot-and-stick approach of the US Sentencing Commissions Guidelines for Organizations? a. Smaller fines are imposed on companies that take proactive steps to encourage ethical behavior b. Unincorporated organization and associations are exempted from penalties c. Nonprofit organizations are exempted from fines d. Organizations accused of unethical behavior are excused if the management was unaware of such behavior
Smaller fines are imposed on companies that take proactive steps to encourage ethical behavior
Which of the following stakeholder group does not engage in regular transactions with a company? a. Local communities b. Governments c. Customers d. Special interest groups
Special interest groups
_________ are defined as a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory a. Deviations b. Values c. Observations d. Standards
Standards
Directions on how to handle employee-relations issues a. single-use plan b. standing plan
Standing plan
_______________ is the phase of an innovation stream in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance of function a. Technological substitution b. Technological lockout c. Technological discontinuity d. Technological development
Technological discontinuity
Which of the following factors should be taken into account when determining the ethical intensity of an action? a. conflict of interest b. Intent of a manager c. Peer acceptance d. Temporal immediacy
Temporal immediacy
Which of the following is a drawback of transnational leadership? a. Transactional leaders often rely too heavily on discipline or threats to bring performance up to standards b. Transactional leaders never punish followers for poor performance c. Transactional leaders have moral standards that put their interests before everyone else's d. Transactional leaders never reward followers for good performance
Transactional leaders often rely too heavily on discipline or threats to bring performance up to standards
The last step in a basic model of ethical decision making is to ____________ a. diagnose the situation b. act on the situation c. analyze alternatives d. monitor the results
act on the situation
Managers cannot demand innovation, but they can create environments that re conducive to innovation. Which of the following actions would Marsalis recommend that managers take to spur innovation in organizations? Check all that apply a. Assign only inexperienced employees to problems requiring high levels of creativity b. Give creative people the opportunity to interact with one another c. Have less experienced employees work with more experienced employees d. Provide employees with training to increase their skills
b. Give creative people the opportunity to interact with one another c. Have less experienced employees work with more experienced employees d. Provide employees with training to increase their skills
The CEO of Fox Mart want to know what his company's financial position looked like on the 31st of December of the previous year. The financial report he should look at is the __________. a. balance sheet b. cash flow analysis c. annual budget d. financial ratio
balance sheet
Baked Delights, a start up bakery, recently collected data on the quality and pricing of the products of Sweet Tooth, the largest and most popular bakery in the region, to help set up its own business standards. This is an example of __________. a. business regulation b. suboptimization c. benchmarking d. profiling
benchmarking
Gigi, the owner of Cafe Mantra, gives small rewards -- free movie tickets -- to employees who regularly come to work on time and complete tasks assigned to them. Employees who break rules or deviate from company policy, however, often get a cut in their performance-linked incentives. Gigi appears to be using ______ with her employees a. bureaucratic control b. concertive control c. normative control d. adaptive control
bureaucratic control
When using ______, managers administer rewards and punishments based on how well employees follow organizational rules, policies, and procedures. a. standards b. feedback control c. bureaucratic control d. control loss
bureaucratic control
The __________ summarizes money coming into a company and money going out of a company to get an overall picture of the health of the business a. output control b. feedback control c. financial ratios d. cash flow analysis
cash flow analysis
Leaders differ from managers in that: a. leaders are concerned with expanding people's choices and options, whereas managers are concerned with control and limiting the choices of others b. leaders are more concerned with the means to get things done, whereas manager are more concerned with what works to get done c. leaders solve problems so that others can do their work, whereas managers inspire and motivate other to find their own solutions d. leaders are critical to getting out the day-to-day work, whereas managers are critical to setting long-term goals
leaders are concerned with expanding people's choices and options, whereas managers are concerned with control and limiting the choices of others
Leaders differ from managers in that: a. leaders are concerned with expanding people's choices and options, whereas managers are concerned with control and limiting the choices of others b. leaders are more concerned with the means to get things done, whereas managers are more concerned with what work gets done c. leaders are critical to getting out the day-to-day work, whereas managers are critical to setting long-term goals d. leaders solve problems so that others can do their work, whereas managers inspire and motivate others to find their own solutions
leaders are concerned with expanding people's choices and options, whereas managers are concerned with control and limiting the choices of others
An unethical decision that harms 10,000 people has a greater _________ that an unethical decision that harms 5 people a. property deviance b. magnitude of consequences c. reactive strategy d. concentration of effect
magnitude of consequences
An unethical decision that harms 10,000 people has a greater ______________ than an unethical decision that harms 5 people a. principle of distributive justice b. magnitude of consequences c. property deviance d. ethics
magnitude of consequences
In an organization, organizational encouragement of creativity occurs when: a. open interaction with subordinates is encouraged b. Management encourages risk taking and new ideas c. supervisors provide clear goals d. group members have diverse experience and the group fosters mutual openness to ideas
management encourages risk taking and new ideas
What is a manager's focus according to the Inherence school?
mangers answer only to shareholders and act only with shareholder's interest in mind
Managers can use over integrity tests to __________ a. reinforce the ethical principle of individual rights b. assess the ethical intensity of an issue c. differentiate between the ethics of primary and secondary stakeholders d. select and hire ethical employees
select and hire ethical employees
The most popular approach to increase goal commitment is to __________ a. set goals participatively b. assign goals to workers c. delegate decision-making authority to workers d. ask the top management to assign goals
set goals participatively
Milton Friedman developed the ________, which say that an organization's number one priority should be to make money for it's owners a. magnitude of consequences b. property deviance c. principle of distributive justice d. shareholder model
shareholder model
An operational plan provides a detailed road map of the steps necessary to achieve operational goals (sometimes referred to as objectives). although there are many specific types of operational plans, they can be broadly characterized as either single-use plans or standing plans. A program plan is an example of a _________, while policy is an example of a _________ plan a. single use plan b. standing plan
single use plan standing plan
A schedule for completing the redesign of an organization's gardens and landscape a. single-use plan b. standing plan
single-use plan
The plan to merge Bank of America with Merrill Lynch a. single-use plan b. standing plan
single-use plan
The Volcker rule separates a bank's investment arm from its normal business activities, such as taking deposits and making loans. The rule was created because most people feel that it is wrong for banks to act as both advisors and creditors to their clients. Knowing this, one can say that the _______ around J.P. Morgan's risky investment activities is ______, ______ the ethical intensity of the situation described in the new report. a. social consensus, weak, decreasing b. probability of effect, weak, decreasing c. probability of effect, strong, increasing d. social consensus, strong, increasing
social consensus, strong, increasing
Typically lasting between six months and two years, _________, show how a company will use its resources to accomplish its mission a. goal commitment b. tactical plans c. electronic brain storming d. standing plans
tactical plans
In the experimental approach to innovation, _______ occurs when a new product is compared to an existing product a. testing b. dominant design c. resistance to change d. change agent
testing