MG 302 Exam 2 Study Set

According to this force-field analysis, change _____ occur.

Will Not

Because organizational change is a difficult endeavor, a company may use _____ , who is an OD expert, to diagnosis problems, develop a training plan, and document performance.

A Change Agent

Apple has traditionally been known for _____ approach, in which it generated its own ideas in house and then developed, manufactured, marketed, and distributed the products.

A Closed Innovation

Managers conduct _____ when they consider the problems and opportunities that drive change and the factors that restrain change.

A Force-Field Analysis

A company that treats its resources, products, and people as transcending national boundaries is _____ company, and it will hire and transfer people for key positions without regard to nationality.

A Geocentric

Not satisfied with the status quo, _____ identifies opportunities for change and promotes innovation in the organization, helping to overcome resistance.

An Idea Champion

Fill in the missing labels. Global Outsourcing Greenfield Venture Joint Venture

B. Global Outsourcing E. Join Venture G. Greenfield Venture

_____ has a rapidly growing consumer market, making it a major player in the shifting international landscape.

Brazil

When determining _____ strategy, managers consider what proportion of the firm's portfolio of businesses should be in different industries.

Corporate-Level

At MultiMarkets, a chain of retail stores, top management decided to respond to the growing challenge of online retail websites with _____, using planning experts to help store managers develop their own plans.

Decentralized Planning

Technology, especially the Internet, and international trade agreements have facilitated _____ , which includes the flow of trade and ideas across national borders.

Globalization

When a company does business in a country like China with a _____ , managers should expect people there to prioritize the future over the present and value thriftiness and persistence. However, when doing business in a country with a _____ , such as Russia, managers need to recognize that people there will value tradition and prioritize social obligations.

Long-term orientation; short-term orientation

Typically set by frontline managers, _______ are the precise, measurable outcomes expected from departments, work groups, and individuals.

Operational Goals

Is this following statement a goal or a plan? I'll recruit people in an International Brotherhood of Electrical Workers apprenticeship program, since they will be more likely to have the skills they need to get their license.

Plan

The tendency for decision makers to conform rather than express contrary opinions is _____. When this occurs, managers prioritize _____ over the quality of the decision.

groupthink; harmony

Different structures tend to give organizations different advantages. For each advantage, identify whether it is associated with a functional structure or divisional structure. 1. The managers and employees in the manufacturing unit share a common outlook and find it easier to communicate with each other because they have similar training and experience. 2. Employees doing different kinds of work, such as research and development, manufacturing, and sales, tend to communicate with one another more and coordinate their activities.

1. Functional Structure 2. Divisional Structure

When conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify: 1. Company opportunities and threats 2. Environmental strengths and weaknesses 3. Company strengths and weaknesses 4. Environmental opportunities and threats

2. Environmental strengths and weaknesses

Which of the following companies has high power distance? 1. At Jupiter Jumpers, teams make decisions together, and everyone in the company is called an associate. The employees and managers often get together to socialize outside of work, and they can be heard laughing and talking over each other while they have drinks together. 2. At Sollient, managers listen carefully to employees when they raise concerns or questions, and employees are not afraid to speak up. Employees expect to be treated equally and fairly. 3. At Sabine Industries, the CEO is seen as the undisputed leader of the office. People are afraid to correct him when he is wrong, and he is always addressed as Mr. CEO, while the people who report to him are addressed by their first names.

3. At Sabine Industries, the CEO is seen as the undisputed leader of the office. People are afraid to correct him when he is wrong, and he is always addressed as Mr. CEO, while the people who report to him are addressed by their first names.

The most effective tactic for implementing change in this situation would be: 1. Coercion 2. Negotiation 3. Participation 4. Top management support

3. Participation

Use your knowledge of decision-making models to fill in the three missing sections of the following table. Clear problem & goals Vague problem & goals Conflicting goals

A. Clear problem & goals B. Vague problems & goals C. Conflicting goals

The following chart gives you an overview of the tactics for overcoming resistance to change. Fill in the missing labels. Participation Communication, education Negotiation Top management support

A. Communication, education B. Participation C. Negotiation D. Top management support

Use your knowledge of innovation strategies for new products and technologies to choose the three labels missing from the following diagram. New venture teams Customers, partners Creativity

A. Creativity B. Customers, partners C. New venture teams

The diagram below represents the international business environment. Complete the diagram by filling in the missing labels. Terrorism Religion Per capita income

A. Per capita income B. Terrorism C. Religion

The diagram below shows the conditions that affect the possibility of decision failure. Complete the diagram by choosing the term for A and B. Nonprogrammed Descisions Programmed Decisions

A. Programmed Decisions B. Nonprogrammed Decisions

A type of open innovation is _____ , in which an organization uses the Internet to invite the public to contribute ideas. EyeWire.org has used this approach to engage 200,000 people in 145 countries in mapping the human brain, neuron by neuron, and improve Princeton University Seung Lab's artificial intelligence algorithm that drives the brain-mapping game.

Crowdsourcing

Your great-great-grandmother left you her recipe book. It contains amazing, delicious cake recipes, and you are certain you can make a fortune with them if you just set up your bakery right. You are considering three possible designs for your bakery: Design 1 A factory in which assembly-line workers create low-cost, standardized cakes to be sold in grocery stores Design 2 A factory in which all cakes are created by machines; technology will enable you to shift from cake to cake as customer needs change Design 3 A personalized wedding cake business in which you will create custom delicacies for your clients According to Joan Woodward, _____ is classified as a small-batch production company.

Design 3

Countries are classified by their level of _____ on the basis of their per-capita income, or income generated by the nation's production of goods and services divided by total population.

Economic Development

In India, people tend to value high _____ , because they are comfortable with inequality among people and organizations.

Power Distance

Aaron is a pipeline welder at the MidAmerican Energy Company. Recently, he had to make a decision about which torch to order for his job. Based on past experience, Aaron knew that if he selected a discount torch, there was a 95% chance that his manager would authorize the expenditure, but that if he selected a more expensive, brand-name torch, there was only a 50% chance that his manager would authorize the purchase. Aaron's decision about which torch to purchase is being made under conditions of _____ , because: 1. The goal is clear, but there is no clear solution to the problem 2. The goal is not clear, and neither is the solution 3. The probabilities of the decision's outcomes are known 4. The decision is routine and follows rules

Risk 3. The probabilities of the decision's outcomes are known

A cafeteria's microwave ovens, its short-order cooks' skills, and its process for setting up the salad bar with fresh vegetables are all part of its _____.

Technology

This map shows the countries that are part of _____ highlighted in green. (Note: Highlighted countries will appear dark gray if you have red-green color blindness.)

The WTO

When referring to a SWOT analysis, the letter T stands for _____, and it refers to factors that are _____ to the organization.

Threats; External

An organization invests in _____ to help certain employees improve a given skill or set of skills.

Training

During the diagnosis step of the decision-making process, managers might _____ to uncover the root cause of a problem.

Use the 5 Whys method

- Open 150 new restaurants during next ten years - Decrease food-container costs by 15 percent during next five years - Decrease average customer wait by 30 seconds this year - Keep corporate debt to no more than 20 percent of liquid assets for next ten years - Revise computerized accounting system within five years - Earn 9 percent on excess cash this year

Vice President

Management at Work Your company's CEO recently attended a conference on organizational development (OD) where she heard about a number of new techniques, including large-group interventions. She wants you to write a report comparing these new techniques to more traditional OD tools, including team-building activities and surveys. The large-group intervention organizational development model leads to _____.

Rapid Transformation

In a _____ effort, Hallmark reimagined and resigned the way in which it brought new cards to market, cutting the time from three years to less than one year.

Reengineering

Select the correct labels to complete the figure of Porter's competitive strategies. 1. Broad 2. Low Costs

A. 1. Broad B. 2. Low Costs

A company that offers $1,000 for the best idea an employee submits each quarter is running _____.

An internal innovation contest

- Implement employee incentive system within one year - Decrease waste by 5 percent this year - Hire and train new assistant manager - Split accounts receivables/payable functions from other areas within two years - Computerize payroll system for each restaurant - Pay all invoices within thirty days

Manager

Employees make greater use of their skills and enjoy more opportunities for professional development in a _____ organization.

Decentralized

Effective managers _____ their dominant decision style to avoid making mistakes.

Are Aware Of

Managers with high cultural intelligence will be _____ effective when assigned to work in another country.

More

Identify whether each statement in the following table is true or false. 1. A company that creates a distinctive product is likely to use a differentiation strategy .2. Differentiation strategies increase competition because they reduce customer loyalty. 3. A company that actively tries to become more efficient is likely to be pursuing a cost leadership strategy.

1. True 2. False 3. True

For each of the situations below, choose whether training or organizational development (OD) would be the more appropriate response. 1. Employees do not trust the company to listen respectfully to their ideas or provide them with growth opportunities. 2. Customer service supervisors often have angry callers transferred to them, so they would benefit from techniques to help avoid burnout.

1. Organizational Development 2. Training

Goal

A goal is a desired future circumstance or condition that the organization wants to realize

When you examine the organizational chart of a _____ , you find that managers have wide spans of control and fewer layers of reporting relationships between frontline supervisors and senior executives.

Flat Structure

Federated Investors has a _____ , with each mutual fund being managed by several portfolio managers who together take responsibility for the fund's performance.

Team-Based Structure

Taco Bell and McDonald's are considering adding kiosks in restaurants for customers to place their orders. This _____ will hopefully make the ordering process more efficient and increase accuracy.

Technology Change

In _____ , employees generate a wide range of alternatives. Organizations may use _____ to encourage participation from people with social inhibitions, reduce a tendency to conform, and increase the diversity of participants.

brainstorming; electronic brainstorming

At a company located in California, the management team engages in _____ to develop detailed plans in case of a devastating earthquake

Crisis Planning

The process of _____ , or identifying problems and opportunities and then resolving them, involves effort both before and after choosing a course of action.

Decision Making

An MNC is _____ vulnerable to an economic downturn in a given national or regional economy, such as the United States or the European Union.

Less

Organizations often use surveys to determine how their employees feel about proposed changes before they happen. These surveys are distributed in the _____ part of the change process.

Unfreezing

A joint venture, a wholly owned foreign affiliate, and a greenfield venture are all forms of _____.

Direct Investing

In an organization, the CEO has the _____ that the position of CEO gives her, and she has the right to make decisions to be carried out by subordinates.

Authority

A company has strong _____ if it continuously seeks new ideas from customers and from looks for ways to use new technologies.

External Coordination

A trend in business today is to _____ authority and responsibility to the lowest level possible in the organization; this frees up time for upper management to focus on strategic issues.

Delegate

Determine which dimension of CQ each example of behavior represents. 1. Speaking more softly to match the way other people are speaking 2. Taking pleasure in meeting people who speak a different language and have different viewpoints on the world

1. Physical 2. Emotional

Use your knowledge of the decision-making process to choose the correct location for each of the three missing labels in the following diagram. Evaluation and Feedback Diagnosis and Analysis of Causes Selection of Desired Alternative

A. Diagnosis and Analysis of Causes B. Selection of Desired Alternative C. Evaluation and Feedback

The following diagram is a simplified continuum illustrating the relationship between an organization's strategic goals and its idea structure. Complete the diagram with the missing labels. Divisional Structure Functional Structure

A. Functional Structure B. Divisional Structure

Fill in the three terms that are missing from this table. 1. Low 2. High 3. Organic 4. Mechanistic

A. Low B. High C. Organic

Is the following statement a goal or a plan? By the time I start my next contract, 3 of my unlicensed electricians will be licensed.

Goal

Is the following statement a goal or a plan? Two months from now, I will have 15 licensed electricians working for me.

Goal

When a company _____ technology to a company in another country, the foreign company can use that technology to make a product similar to the one the first company makes but using its own systems and name.

Licenses

You would study a business's _____ to see a visual representation of its vertical structure, including the chain of command.

Organization Chart

- Provide 14 percent return to investors for at least ten years - Start or purchase new restaurant chain within five years - Negotiate new labor contract this year

President/CEO

Kaila, the owner of a costume shop, has a three-year strategic goal to serve 15 percent more customers and increase margins by 5 percent. To achieve this goal, she will lease the retail space next door. When she signs the lease and pays to remodel the space, this is an example of _____

Strategy Execution

To solve a problem, a manager might establish and lead a temporary _____ of people from different departments. This group would disband once the problem was solved.

Task Force

Sometimes when an organization first starts horizontal coordination efforts to promote innovation, _____ is needed to help employees communicate with each other and constructively deal with conflict.

Team Building

As a manager for a company that is looking to expand to China, what should your company focus on? Check all that apply. 1. Building relationships with suppliers and business partners 2. Marketing products to the Chinese elite and upper class 3. Manufacturing processes 4. Ensuring that contracts are signed before any business partnerships begin

1. Building relationships with suppliers and business partners 3. Manufacturing processes

Carly is applying for a position at a multinational corporation that will require her to work with people in other countries. Fortunately, she has experience doing this. To prepare for her interview, she is reviewing instances when she demonstrated a global mindset during her previous job. She knows that she will show the interviewer she has a global mindset by telling about times she has appreciated and influenced individuals, groups, organizations, and systems with different social, cultural, political, institutional, intellectual, and psychological characteristics. If Carly shows the interviewer that she is familiar with European Union regulations and knowledgeable about how people in Germany prefer to do business, which dimension of her global mindset is she demonstrating? 1. Cognitive dimension 2. Social dimension 3. Psychological dimension

1. Cognitive dimension

Which of the following are examples of companies operating in a globalized world? Check all that apply. 1. Dunkin' Donuts serves dry pork and seaweed donuts in China and grapefruit donuts in Korea. 2. Austria's Red Bull sponsors extreme sports events across Europe, North and South America, and Asia, making its drinks feel like a local presence while the company maintains a European look to its packaging. 3. San Francisco-based Airbnb used #OneLessStranger to spark an international social media campaign in which it asked its community of customers to perform random acts of hospitality for strangers, then share a video or photo of themselves with the person they helped. 4. Esurance, a subsidiary of Allstate, sells car insurance online and over the phone to consumers in 40 U.S. states, and it advertises in conjunction with the Super Bowl and Major League Baseball.

1. Dunkin' Donuts serves dry pork and seaweed donuts in China and grapefruit donuts in Korea. 2. Austria's Red Bull sponsors extreme sports events across Europe, North and South America, and Asia, making its drinks feel like a local presence while the company maintains a European look to its packaging. 3. San Francisco-based Airbnb used #OneLessStranger to spark an international social media campaign in which it asked its community of customers to perform random acts of hospitality for strangers, then share a video or photo of themselves with the person they helped.

Management at Work Jerzy Krakowski is a cobbler who lives in the small town of Owczary on the outskirts of Krakow, Poland. Over the years, he has developed a following of devoted clients, including tourists from other countries. One of his best clients, Leon Alvarez, owns a chain of shoe stores in Spain. Leon is trying to persuade Jerzy to develop an international business, starting in Spain. But how should Jerzy do this? Jerzy is considering several different strategic objectives, and he asks you to help him identify the best approach for international involvement based on his objectives. Identify the market entry strategy that will best help Jerzy to meet his objectives. 1. Jerzy knows that he will have to expand his operations if he wants to produce enough shoes for an international market. He has heard that there are shoe dyers in the Ukraine who will work for much lower prices than the dyers in his town charge. Jerzy is considering sending some of his work out to a Ukrainian shoe dying factory as a way to keep his costs down while he determines exactly how much demand exists for his product. 2. Jerzy thinks that he would like to work closely with someone who really knows the Spanish market, and he is not concerned with maintaining high levels of control over his product. He is considering giving Leon the rights to use his shoe designs for a fee. This will keep Jerzy's costs down but still give his shoes a wider exposure. 3. Jerzy has made a tremendous amount of money selling his shoes, and Leon is very persuasive. Jerzy wants to have the maximum amount of control over his global business, and he is willing to assume a lot of risk to do so. He is considering opening up a completely new operation in Spain. Jerzy spends a lot of sleepless nights wondering how he is going to make sure he markets his product correctly in a country that he doesn't know.

1. Global Outsourcing 2. Licensing 3. Greenfield Venture

In the table below, read the description and determine if it is referring to China, India, or Brazil. 1. This country has a large number of highly trained scientists and doctors which has attracted U.S. pharmaceutical and healthcare R&D centers. 2. Contracts are not viewed as an unchangeable agreement and managers in this country frequently withhold payments as a tactic in price negotiations. 3. In 2010, the country announced a $22 billion investment in science and technology innovation.

1. India 2. China 3. Brazil

Management in the News In India, the Swiss pharmaceutical company Novartis International AG is using its Arogya Parivar initiative to increase trust in conventional medicine among the very poor, thereby cultivating a market for its products. Novartis employs health educators to teach laypeople about disease, treatment, and prevention, and it also sends supervisors to assess each local area's needs and provide education to health care providers. It has accompanied this education effort with a different pricing structure, selling medications in smaller packages with smaller price tags. By cultivating this untapped market in a socially entrepreneurial way, Novartis seeks to increase its profits. The effort has been successful enough in India that the company has started similar programs in Kenya and Vietnam and has plans for Indonesia. Novartis is using education to build a market where none has existed before. Why have very poor people been underserved by for-profit companies? 1. These people have found that the products and services offered for sale are unsuited to their needs. 2. These people do not know how to save up their money to make major purchases. 3. These people have not used available infrastructure to access products and services.

1. These people have found that the products and services offered for sale are unsuited to their needs.

Carly interviews for the job—and she gets it! Her new boss says that what impressed him most was her global mindset, and he wants her to be a role model for other employees in the company. How can Carly best demonstrate how one acquires a global mindset? Check all that apply. 1. Taking the position that the way most Americans do things is best and people in other countries should adapt to it 2. Cultivating relationships with immediate coworkers from other cultures and people within and outside the organization in other countries 3. Expressing a consistent curiosity about world affairs and the international business environment 4. Opting for assignments that will not involve travel to other countries

2. Cultivating relationships with immediate coworkers from other cultures and people within and outside the organization in other countries 3. Expressing a consistent curiosity about world affairs and the international business environment

Talia lives in Houston, Texas. She has traveled to India several times and is interested in working for a multinational corporation (MNC) with a presence there. She hopes that by working for such a company, she'll first have an opportunity to transfer to a position in India and live there for an extended time and then be able to parlay that international experience into opportunities in other countries. Her research shows that MNCs with a significant presence in India include Nestlé, headquartered in Switzerland; PepsiCo, headquartered in the United States; Sony, headquartered in Japan; and Sun Pharmaceutical Industries, headquartered in India itself. Talia wants to do a lot more research on how these companies operate in India and on the nature of MNCs in general. As Talia researches MNCs, she will find that they: Check all that apply. 1. Transfer capital, technology, and people among their affiliates in various countries 2. Expect their executives to look at the business environment globally—as one market for strategy, sourcing, production, and sales and marketing 3. Ultimately integrate their diverse activities in a centralized headquarters function, which may be physically located in one or more countries 4. Enjoy almost universal positive regard among the public in their home country and the countries in which they operate

1. Transfer capital, technology, and people among their affiliates in various countries 3. Ultimately integrate their diverse activities in a centralized headquarters function, which may be physically located in one or more countries

Which of the following statements correctly describes the North American Free Trade Agreement (NAFTA)? Check all that apply. 1. A drawback of NAFTA is that it has erected barriers to the entry of small businesses into the international market. 2. NAFTA dramatically reduced tariffs on goods traded among the United States, Canada, and Mexico. 3. Businesspeople in the United States, Canada, and Mexico have mixed opinions about whether NAFTA has been a success. 4. NAFTA reduced the amount of trade among the countries involved.

2. NAFTA dramatically reduced tariffs on goods traded among the United States, Canada, and Mexico. 3. Businesspeople in the United States, Canada, and Mexico have mixed opinions about whether NAFTA has been a success.

Which of the following companies has high individualism? 1. Dave Douglas, the CEO of Intrane, LLC, routinely walks through the office, stopping to chat with his employees. He encourages them to speak freely, and he gives them credit for their good ideas. His employees all say that Dave is one of the few bosses whose open door policy is just that: an open door. 2. Mylar Mechanics is a global organization, so it is important to make sure that employees are able to communicate with each other on a regular basis. Last week, managers used the World Clock Meeting Planner to find the best time for a meeting between the Amsterdam, Austin, Delhi, and Orlando offices. 3. Ivana's Images has a reputation for being the best in the business. Sure, Ivana is difficult to work with—you wouldn't want her on your team—but she can do layout and design faster and better than anyone else. Ivana likes to work by herself, and she is happiest when she can prove that she is better than everyone.

3. Ivana's Images has a reputation for being the best in the business. Sure, Ivana is difficult to work with—you wouldn't want her on your team—but she can do layout and design faster and better than anyone else. Ivana likes to work by herself, and she is happiest when she can prove that she is better than everyone.

Management at Work Bricks 'n' Bats makes children's toys. The CEO is reorganizing the company to adjust to several changes in the environment. One is the increasing sales of toys online instead of in brick-and-mortar stores. Another is a trend toward less gender orientation in the marketing of toys, as evidenced by Target's decision to stop labeling many children's products as for boys or for girls. Yet another change is parents' growing preference for toys that allow their children to build or make unique creations as well as for educational toys that teach science, math, and other topics. As the CEO considers various organizational structures, he hires you as an expert consultant. Answer the question posed by the CEO of Bricks 'n' Bats. "Under what circumstances should I hire more managers so each can have a narrower span of control?" Check all that apply. 1. When the work tends to be the same over time and requires little planning 2. When few management support resources, such as technology or people, are in place 3. When most people reporting to each manager will be performing similar work 4. When tasks are new and few procedures are in place to guide how work should be done

2. When few management support resources, such as technology or people, are in place 4. When tasks are new and few procedures are in place to guide how work should be done

What type of structure does this organization have? 1. Functional 2. Matrix 3. Virtual network 4. Divisional

4. Divisional

Bob is a manager at Motorola who has lost five of his employees during the last year. Now he has to make a decision about how to retain the employees on his team. Having recently taken a class on decision making, Bob decides to follow the six-step process for deciding what to do. What problem is Bob most likely to face during the evaluation and feedback step in the decision-making process? 1. Jumping to solutions before understanding the problem 2. Considering only "tried and true" solutions without creating new possibilities 3. Satisficing, or choosing the first solution that works, not the best solution 4. Neglecting to gather information on whether or not the plan was successful

4. Neglecting to gather information on whether or not the plan was successful

When the classical model of decision making is said to be normative, this means: 1. The model is best suited for conditions of high uncertainty. 2. The model is most useful for nonprogrammed decisions 3. The model defines how people actually make decisions, under less than ideal conditions. 4. The model defines how people should ideally make decisions

4. The model defines how people should ideally make decisions

Management at Work Newspapers are under tremendous pressure to stay relevant as people increasingly turn to the Internet for news and feature articles. In response, many newspapers have enhanced their websites by adding more content, including podcasts, videos, and reporters' blogs, and publishing breaking news on their websites well before the next edition of the newspaper goes to press. They then sell advertising on the website, and some put content behind a "paywall," requiring users to purchase access through a subscription. For the most part, growth in revenues from online advertising and subscriptions has not offset losses of revenues from the print edition. Ironically, as newspapers join the many other media companies that publish journalism online, there is that much more reason for people to cancel their subscriptions to the hard-copy edition and read the paper online. The newspaper companies are thus fueling the very trend that is leading to their demise. Over the last year, the Central Times publishing company has invested heavily in its online presence. Its subscriptions manager recently surveyed people who had let their subscription lapse in the previous six months. Of those who responded, 86 percent said they no longer subscribe because they read the paper online. In response to the survey results, the publisher calls the editor in chief into her office and says, "Jax, I want you to pull together a cross-functional team that will prepare the paper to go entirely online within two years. Put them in the wing of the building we don't use anymore since we had to let a third of our reporting staff go. They'll report directly to you." According to the scenario, which of the following is the primary cause of disruption to Central Times's business environment? 1. Establishment of a team to put the newspaper online 2. Selling online advertising and subscriptions 3. Subscribers cancelling their subscriptions 4. Distribution of content on the Internet

4. Distribution of content on the Internet

Dollar General uses a cost leadership strategy. The Dollar General slogan is "Save time. Save money. Every day!®" Dollar General will be more effective if it has _____ structure. Which of the following reasons explain this? Check all that apply. 1. Horizontal communication and broad spans of management allow for added flexibility in employee decision making. 2. Narrow spans of management ensure that employees operate efficiently. 3. Short chains of command ensure that the company will operate most effectively in a turbulent environment. 4. Centralized decision making allows the organization to place tighter controls on the way work is done and, in the process, achieve economies of scale.

A Mechanistic 2. Narrow spans of management ensure that employees operate efficiently. 4. Centralized decision making allows the organization to place tighter controls on the way work is done and, in the process, achieve economies of scale.

To develop effective lower-level goals, Michelle works with her management team to establish _________, which measure how well the organization is achieving its strategic goals.

Key Performance Indicators

The IT manager knows she wants to improve the company's email system. However, the situation is one of _____ because she does not know the costs and potential benefits of the various options, and she is unsure how the company will be using the email system in a few years.

Uncertainty

Different structures also bring different disadvantages. For each disadvantage, identify whether it is associated with a functional structure or divisional structure. 1. Human resources is done separately in each of the seven units serving different geographic areas, and having seven smaller HR departments is less efficient than having one. 2. People in manufacturing communicate mostly with other manufacturing employees and relatively little with people in engineering and sales.

1. Divisional Structure 2. Functional Structure

Which of the following statements is consistent with evidence-based decision making? Check all that apply. 1. Managers make better decisions when they review their past failures and successes. 2. It is better to forget past mistakes so you don't make them again. 3. Evidence-based decision making uses opinions and intuition to provide a rationale for decisions. 4. Evidence-based decision making encourages questioning assumptions.

1. Managers make better decisions when they review their past failures and successes. 4. Evidence-based decision making encourages questioning assumptions.

In the table below, match each of the activities to the management by objectives step in represents. 1. On April 1, the manager sees that nine contingent call center workers have been hired and completed training. On June 30, call center data show 5 percent of calls are on hold for more than 90 seconds 2. On September 30, the manager reports that call center hold times for the summer construction season averaged 42 seconds, with 30 percent of all calls not being put on hold at all but 2 percent of calls exceeding 90 seconds of hold time. The plan is rated mostly successful. 3. A pool of twelve contingent call center workers who work at home will be hired and trained before April 15. These employees can be activated anytime hold times threaten to exceed 90 seconds. 4. Based on data on how long people wait before hanging up, the manager decides the maximum time on hold should be 90 seconds. Setting a goal Developing an action plan Reviewing Progress Appraising performance

1. Appraising Performance 2. Reviewing Progress 3. Setting a goal 4. Developing an action plan

For each example, select the decision style that most closely corresponds to it. 1. Tom tends to consider the personal development of others when making decisions. 2. Kyle prefers to base decisions on lots of data, both objective data from information systems and qualitative data from people. 3. Cassie likes to make decisions after considering many alternatives and looking at as much objective data as possible. Analytical Style Conceptual Style Behavioral Styles

1. Behavioral Style 2. Conceptual Style 3. Analytical Style

In the following table, indicate which of the following outcomes reflect likely benefits and which reflect possible drawbacks of the men's new work structure. 1. Each worker will become more productive, because he will develop a high level of expertise in his task. 2. The machinery that Daesun buys is much more efficient than Cedric's machinery, so Daesun often has downtime while he waits for Cedric to shear more sheep. 3. If it used to take each man 4 hours to monitor one fifth of the sheep, it now takes Brian less than 20 hours to monitor all the sheep.

1. Benefit 2. Drawback 3. Benefit

You are thinking about starting a new organization to design and deliver fashionable touchscreen accessories. But you want your company to be maximally creative. Which of the following organizational principles would help to make your company more innovative? Check all that apply. 1. Decentralization: letting everyone control their own work and having few layers of management 2. Specialists: make sure that all problems are handled by people who have a great expertise in that area 3. Contact with outsiders: employees regularly meet with people who are not part of the organization 4. Freedom: the ability to choose which problems to work on and how to address them

1. Decentralization: letting everyone control their own work and having few layers of management 3. Contact with outsiders: employees regularly meet with people who are not part of the organization 4. Freedom: the ability to choose which problems to work on and how to address them

What problem might the CEO expect if the company switches to a team-based structure? 1. Decentralized decision making may reduce economies of scale, making the company less efficient. 2. There will be less innovation across the company. 3. Functional and product managers may have conflicting goals.

1. Decentralized decision making may reduce economies of scale, making the company less efficient.

Study the figure showing the horizontal linkage model and read the scenario. Then answer the question that follows. You work for a company whose mobile apps help children with various kinds of learning disabilities complete schoolwork more easily. Your company markets its products primarily to parents, but it is beginning to approach school system administrators and teachers about using the software in the classroom. Currently, the research department determines what kinds of apps to make, the software development department makes the apps, and the marketing department sells the apps. To be competitive, it is necessary to constantly update products to reflect the latest learning science research and users' preferences. Your boss has read about the horizontal linkage model, shown above, and asks you how it might help the company innovate more effectively. If the company implements the horizontal linkage model, which of the following are likely to occur? Check all that apply. 1. Employees in marketing will pass along feedback to the software development and research departments about how enjoyable kids find the apps. 2. Managers of each department will interpret the company's goals for that department and communicate what tasks their employees should perform to achieve the goals. 3. Cross-functional teams and/or task forces will be formed and meet regularly to coordinate activities between departments. 4. Employees in research will share the latest learning science research with the marketing department so those employees can gauge its importance to customers.

1. Employees in marketing will pass along feedback to the software development and research departments about how enjoyable kids find the apps. 3. Cross-functional teams and/or task forces will be formed and meet regularly to coordinate activities between departments. 4. Employees in research will share the latest learning science research with the marketing department so those employees can gauge its importance to customers.

Nat Windom is the chief operating officer (COO) of your company. He has been reading about relational coordination and has learned that it is a "powerful driver of performance when work is interdependent, uncertain and time constrained." He has also read that improving the quality of coordination in this way can improve "quality, safety, efficiency, engagement, learning and innovation." With these benefits in mind, he is very excited about implementing relationship coordination at your company. Nat knows that you have been studying how organizations coordinate the activities of people and departments, and he calls you into his office to ask for your advice. "If our company achieves a high level of relational coordination, what can we expect in terms of employee behavior?" Check all that apply. 1. Employees will be empowered to collaborate directly with each other across organizational boundaries. 2. Project managers, cross-functional teams, and task forces will play a vital role in sharing information between departments or divisions. 3. Information will flow across a network of informal relationships rather than primarily through a formal chain of command. 4. Employees in different departments or divisions will share information easily.

1. Employees will be empowered to collaborate directly with each other across organizational boundaries. 3. Information will flow across a network of informal relationships rather than primarily through a formal chain of command. 4. Employees in different departments or divisions will share information easily.

Management in Life Ivan's term paper for his marketing class deals with the product development process. Ivan has decided to use some of his knowledge from his management class to write the paper, and he's collected a number of examples of different innovation strategies. Which of the following examples involve an innovation roles strategy? Check all that apply. 1. In 1943, a small team of Lockheed Martin engineers designed and built a new fighter jet in only 143 days. One of the rules for the team encouraged them to allow vendors to do basic inspections, thus allowing the team (known as the SKUNK WORKS) to spend more of their time on creating the product. 2. Mozilla (creators of Web browser Firefox and e-mail client Thunderbird) has an online store selling crowdsourced T-shirts. These shirts, designed by people who don't work for Mozilla, advertise Mozilla products in new and creative ways. 3. Nissan's CEO, Carlos Ghosn, stubbornly insisted on investing in an all-electric car, even when his 350,000 employees were against it. The result was the Leaf, the first mass-market, zero-emission car. 4. IBM moved Rod Atkins, then the head of IBM's Unix Computing Division, into a new assignment, "pervasive computing," where he was supposed to find an entirely new area for IBM to grow into.

1. In 1943, a small team of Lockheed Martin engineers designed and built a new fighter jet in only 143 days. One of the rules for the team encouraged them to allow vendors to do basic inspections, thus allowing the team (known as the SKUNK WORKS) to spend more of their time on creating the product. 3. Nissan's CEO, Carlos Ghosn, stubbornly insisted on investing in an all-electric car, even when his 350,000 employees were against it. The result was the Leaf, the first mass-market, zero-emission car.

You have recently been promoted, and your decisions will have a greater impact on your organization than before. Even if you try hard to make good decisions, what factors may contribute to poor outcomes? Check all that apply. 1. Information may be incomplete or contradictory, requiring some guesswork. 2. When you need to make a decision quickly, experience with similar problems will allow you to do so. 3. Conditions change, so the future environment may not be the same as the current one. 4. Colleagues may have different opinions about how to solve the problem or even what the problem is.

1. Information may be incomplete or contradictory, requiring some guesswork. 3. Conditions change, so the future environment may not be the same as the current one. 4. Colleagues may have different opinions about how to solve the problem or even what the problem is.

Which of the following companies has high uncertainty avoidance? 1. Last week, Swanita approached her boss in tears. "But I've been sitting at the same desk for 20 years!" she exclaimed. "How will I be able to do my work if you put me all the way across the office from the people I'm supposed to support?" 2. The nurses of Interim Nursing, a home health care service, pride themselves on their ability to handle whatever situation they encounter, no matter how unexpected. Last week, one of the nurses walked into a house expecting to find a patient with a mild heart condition. Instead, she found someone who was very close to having a full-blown heart attack, complicated by diabetes. Quickly assessing the situation, she stabilized his blood sugar and called the ambulance, which arrived just in time. 3. Francesca's boss is constantly on the lookout for new ideas. Just last month, he sent her on a 2-week fact-finding trip. Her job was to visit 16 different production facilities in 7 different industries and to use what she saw to develop new and more efficient ways to run her company's manufacturing process.

1. Last week, Swanita approached her boss in tears. "But I've been sitting at the same desk for 20 years!" she exclaimed. "How will I be able to do my work if you put me all the way across the office from the people I'm supposed to support?"

Because global economies are interconnected, all of the following statements are true except: 1. Less-developed countries are less likely to feel the effects of a global economic crisis. 2. Companies will face economic crises on a regular basis. 3. Managers who see growth in one economy should look for growth in other economies. 4. Economic crises can spread rapidly around the world.

1. Less-developed countries are less likely to feel the effects of a global economic crisis.

In the following table, identify whether each example is a programmed or nonprogrammed decision. 1. Univision Communications Inc., a Spanish language entertainment giant, hired Randy Falco as its executive vice president and chief operating officer. The decision executives at Univision made about who to pick for this position is a: 2. The front office staff at Marriott Hotels has a preshift meeting at 7:00 AM every morning. As general manager, you are expected to attend these meetings. The decision you make every day about what time you will arrive at work is a:

1. Nonprogrammed Decision 2. Programmed Decision

Management in Life You've been meaning to start exercising for a while now, but it's hard to get the change process started. On one hand, you like sitting quietly in front of the TV, but on the other, you'd like to feel better and look better. The following diagram presents your dilemma as a force-field analysis, showing the factors for change on the left and the factors against change on the right. The numbers in parentheses represent the strength of each factor, and you can select "Total" to see a visual representation of the combined effects of change. Which of the following factors would keep a person from changing in this situation? Check all that apply. 1. Not having enough time 2. Desire to run a marathon 3. Fear of looking silly 4. Desire to get healthy

1. Not having enough time 3. Fear of looking silly

For each example of resistance to change, identify the most likely reason for the resistance. 1. Factory workers believe that automating an assembly line will result in job loss at the factory. 2. Management has promised that the new billing system will free up employees' time so they can perform more valuable work, but the last time a new computer system was implemented, employees had to do more work than before to accomplish the same tasks. And the time before that, the system caused so many errors that it quickly had to be scrapped. Employees suspect that their managers have no idea how to evaluate or install a new billing system, and they are approaching training on the new system with little enthusiasm. 3. Employees have heard that their company is merging with another company, but management has not made any announcements about how the merger is expected to affect what products the company makes and how it makes them or what the likely effect on the bottom line will be. Employees aren't sure whether the merger will be positive for the firm or not. Self-interest Uncertainty Distrust Different viewpoint

1. Self-interest 2. Distrust 3. Uncertainty

As the Board of Governors of the American Red Cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. Another option is to have planning specialists help managers across the organization make their own plans. Why might this organization's executives opt for the latter approach? Check all that apply 1. The environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. 2. Senior leadership will have more control over the organization's direction. 3. When managers come up with their own plans, they are likely to be more committed to following through on them. 4. Resources will be better coordinated across the organization in support of the overall strategy.

1. The environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. 3. When managers come up with their own plans, they are likely to be more committed to following through on them.

In some years, weather patterns have caused there to be a few fish in local lakes, and anglers have gone elsewhere. Also, invasive carp are threatening the lakes and may someday cause fish stocks to drop indefinitely. How should these facts impact Dave and Betsy's planning? 1. They should develop a contingency plan in case few anglers book rooms. 2. They should get input from guests and staff to the goal-setting process and resolve any conflicts among their staff about how best to maintain high occupancy. 3. They should set measurable goals for room occupancy and measure results against those goals weekly. 4. They should develop a crisis response plan in case of a bad weather report or a carp sighting.

1. They should develop a contingency plan in case few anglers book rooms.

Imagine that you have just accepted a job at a company with a matrix structure. The company is a consulting firm that provides business strategy advice to its corporate clients. Employees are assigned to both a functional area and to a customer group division. You are working in the Marketing and Sales department, and you are assigned to the Small Business Accounts division. In your new job, which of the following can you expect? Check all that apply. 1. Two-boss employees will have to resolve conflicts between the competing priorities of their managers. 2. Very little time will be spent in meetings and on other communication. 3. If the environment is rapidly changing, the company will be able to respond quickly. 4. It will be difficult to raise new issues and resolve them because horizontal and vertical communication is limited.

1. Two-boss employees will have to resolve conflicts between the competing priorities of their managers. 3. If the environment is rapidly changing, the company will be able to respond quickly.

According to the information in the table, which of the following conclusions is most likely to be true? 1. A bakery using a mass production design will be able to operate with fewer employees than a bakery using a continuous process design. 2. A mass production design is likely to be effective if your bakery is operating in a stable environment without a lot of competition. 3. A continuous process production design is likely to be effective if your bakery pursues a low-cost leadership strategy. 4. A small-batch production design will help your bakery to operate more efficiently.

2. A mass production design is likely to be effective if your bakery is operating in a stable environment without a lot of competition.

The senior partners at S. V. Lee & Associates, a law office, just announced that, going forward, the company will focus on employment law because such cases are typically resolved more quickly than other types of legal problems. Several of the junior partners believe that this is a bad idea because they have seen a decrease in the overall number of employment law cases. Talking amongst themselves, the junior partners decry their lack of involvement in developing the firm's strategies. They are considering refusing to take on employment law cases when they arise. The most likely cause of resistance to change in this situation is: 1. Self-interest on the part of the junior partners 2. Junior and senior partners have different goals 3. The junior partners' lack of information about future events

2. Junior and senior partners have different goals

If you work in a complex organization in which you see the political model of decision making at work, which of the following is likely true about your organization? 1. Managers mostly understand one another's goals and viewpoints 2. Managers have different interests and are pursuing different goals 3. Decisions can be effectively made by one leader, and all managers will readily support whatever the decision is 4. Managers mostly have the same information about the situation, and that information is fairly complete

2. Managers have different interests and are pursuing different goals

Which of the following would not be a way that Taylor could overcome this bias? 1. Develop a policy on how to handle unruly teenagers 2. Post a sign on the store's door that indicates anyone under the age of 15 must be accompanied by an adult 3. Take a deep breath and focus on each situation, regardless of emotions, while concentrating on what the appropriate decision would be 4. Delegate future situations like this to another team member who is better capable of handling similar situations

2. Post a sign on the store's door that indicates anyone under the age of 15 must be accompanied by an adult

As a manager, you have been asked to work with your employees to develop goals. What can you expect from this process? Check all that apply 1. When deciding whether goals and plans will be beneficial, managers should consider whether the environment is more stable or more dynamic. 2. The advantages of setting goals and making plans always outweigh the disadvantages for every organization in any environment. 3. A benefit of goals is that they help motivate employees. 4. Planning can harm an organization because it distracts employees from important outcomes.

2. The advantages of setting goals and making plans always outweigh the disadvantages for every organization in any environment. 3. A benefit of goals is that they help motivate employees.

In new venture teams and skunkworks, managers remove employees from the main body of the company in order to give them: 1. Additional rules and regulations so that innovative ideas are implemented correctly 2. Extra training so that they can learn from more senior members of the organization 3. Additional time, space, and freedom for innovation 4. Extra exposure to customers and renegades who can help them dream up new product approaches

3. Additional time, space, and freedom for innovation

Your best friend is coming over to give you an exercise pep talk. According to force-field analysis, what's the best topic for the talk? 1. How great you're going to look once you've started exercising. 2. How cool it would be to run a marathon. 3. How much exercise you can get into very short periods of time. 4. How healthy you'll be once you've started exercising.

3. How much exercise you can get into very short periods of time.

Considering all of the factors listed in the preceding SWOT analysis question, which of the following strategies would make the most sense for the Cubs in the upcoming season? 1. Keep the Cubs intact and do not hire any new players because the team was good enough to win the World Series. 2. Trade the Cubs' current pitchers to another team for minor-league prospects who aren't ready for the major league. 3. Sign a free-agent outfielder to bolster the current roster and sign the current pitchers to long-term contracts. 4. Assume that as the players age, they will continue to produce at their current levels.

3. Sign a free-agent outfielder to bolster the current roster and sign the current pitchers to long-term contracts.

What type of structure does this organization have? 1. Functional 2. Matrix 3. Team-Based 4. Virtual network

3. Team-Based

Management at Work After he finishes celebrating with his team, Jed Hoyer, the general manager of the 2016 World Series Champion Chicago Cubs, is going to do a SWOT analysis to determine his strategy for the upcoming baseball season. Help him figure out how he should classify the following information. Which of the following factors should be classified as a strength for the team? 1. Teams like the Texas Rangers and Cleveland Indians have a tough time finding players due to the extreme talent already on their teams. 2. There are a number of free-agent outfielders who are available for signing by the Cubs this year, many of whom have better statistics than the current team members. 3. The Cubs' have an incredible depth to their bullpen, solid starters, reliable relievers, and one of the highest-ranked closers in all of baseball. 4. The Cubs' current right-fielder, while defensively sound, has struggled at the plate for the last two seasons.

3. The Cubs' have an incredible depth to their bullpen, solid starters, reliable relievers, and one of the highest-ranked closers in all of baseball.

The CEO of GardenGrow is considering moving to a team-based structure. What would be the best reason to make such a move? 1. To instill a unity of command throughout the organization 2. To centralize the organization, gaining more control over decision making 3. To respond more flexibly to a changing environment

3. To respond more flexibly to a changing environment

Following are several actions managers commonly take when confronted with turnover. Which of these actions are not supported by evidence? Check all that apply. 1. Let employees select the classes they think would help them the most on the job. 2. Provide leadership training to all new supervisors and managers. 3. When talking with job applicants, discuss only the best parts of the job. 4. Separate employees so that they don't talk about the people who have left the company.

3. When talking with job applicants, discuss only the best parts of the job. 4. Separate employees so that they don't talk about the people who have left the company.

In the large-group intervention organization development model, information is: 1. Based on team-building results 2. Based on survey results 3. Widely shared 4. Limited

3. Widely shared

For each description of managerial decision making, identify the type of bias at work. Last week, some teenagers came into the store and were very loud. They also made jokes about stealing from the store, although store staff did not observe them pocketing any items. Taylor got so angry at their behavior that she screamed at them to "Get out! Get out of this store right now and don't ever come back!" They left immediately, but then she called the police. Other customers were disturbed by her outburst and the police presence and wondered whether they were in danger. A customer caught her outburst on his cell phone, and the video soon went viral on the Internet. 1. Perpetuating the status quo 2. Being influenced by initial impressions 3. Overconfidence 4. Being influenced by emotions

4. Being influenced by emotions

GardenGrow is a garden supply company that produces and sells garden tools and compost. Managers for tools and compost report directly to the CEO. Each of these managers supervises employees in sales, manufacturing, and accounting. Here is the organizational chart showing the structure or departmentalization for GardenGrow: GardenGrow has a _____ structure. Which of the following characteristics would you expect GardenGrow to have? Check all that apply 1. Functional departments within this company form silos, and there is little communication between them. 2. Certain functions within the company will be duplicated within each division. 3. By bringing employees together to make a single product, this company breaks down barriers between departments. 4. Decision making in this company occurs lower in the chain of command, with product managers responsible for problem solving.

Divisional 2. Certain functions within the company will be duplicated within each division. 3. By bringing employees together to make a single product, this company breaks down barriers between departments. 4. Decision making in this company occurs lower in the chain of command, with product managers responsible for problem solving.

An an organization becomes more mechanistic, its communication flow becomes _____.

More Veritcal

Stephanie orders office supplies every month. She is making a _____ because she always bases the order on current inventory levels, which are accurate and up-to-date.

Programmed Decision

John Deere engaged in _____ when it developed an inexpensive tractor for farmers in India and then found a market for the tractor in the United States.

Reverse Innovation

You and your coworkers are very hungry and have decided to go to lunch. You engage in _____ by going to the first restaurant no one objects to.

Satisficing