MGMT Exam 3

As represented in a hierarchical organization diagram, authority is based on A) Vertical potion B) Horizontal C) Distance from the center D) Horizontal and vertical positions

(A)

Which of the following is an organizational technology change? A) purchase of a new backhoe B) widening of span of control C) employees expecting a raise D) employees accepting a new schedule

(A) A technology change requires a change in how work is done or what it is done with. New equipment qualifies as a technology change, so "purchase of a new backhoe" is the correct response. Both employees expecting a raise and employees accepting a new schedule involve attitudes, so they are examples of people changes, not technology changes, making both choices incorrect. Finally, a span of control change is a structural, not a technology change, so "widening of span of control" is incorrect.

A media company that has separate, autonomous companies for movies, TV, Internet, and print journalism is most likely a ________ structure. A) divisional B) simple C) matrix D) functional

(A) An organization that features autonomous branches that function like independent companies is likely to be a divisional structure. This media company fits the description of a divisional structure, making that the correct response and ruling out a functional, simple, or matrix structure.

State motor vehicle offices usually use this kind of departmentalization. A) process B) product C) customer D) functional

(A) Motor vehicle offices organize, for example, by the process of getting a driver's license. First the customer fills out forms, then takes an eye test, then takes a written test, and so on. This makes "process" correct.

Organizational orientation informs a new employee about ________. A) the history and philosophy of the organization B) what expectations he or she has about the job are unrealistic C) how their manager will evaluate the employee on the job D) his or her responsibilities for the job

(A) Organizational orientation focuses entirely on the organization-its goals, rules, customs, philosophy, history, and so on. This makes "history and philosophy" the correct response. Organizational orientation does not focus on informing the new employee about his or her responsibilities, expectations, or how he or she will be evaluated on the job. This makes those three choices incorrect responses.

Organization development (OD) helps employees ________. A) deal with planned change B) avoid all types of change C) deal with unplanned change D) avoid unpleasant change

(A) The goal of OD is to help employees deal with planned, not unplanned, change, making "planned change" the correct response and "unplanned change" incorrect. OD sees change as inevitable in most cases, so it would not seek to avoid change, making "avoid unpleasant change" or "avoid all types of change" incorrect responses.

Uncertainty causes people to resist change because it ________. A) replaces the known with the unknown B) decreases performance expectations of people C) increases performance expectations of an employee D) replaces the unknown with the known

(A) The key to uncertainty is that it neither increases nor decreases performance expectations of employees, but rather it makes them unsure of precisely what is expected of them. People find this state of "not knowing" very unsettling, so they tend to resist change. Put another way, people resist change because it replaces the known with the unknown, making that the correct response and "replaces the unknown with the known" incorrect. With respect to expectations, uncertainty replaces known expectations with unknown expectations.

A written statement of what a job holder does in his or her job, how it is done, and why it is done is known as a ________. A) job description B) job specification C) job qualifications D) job definition

(A) The process of defining a job starts with a detailed job analysis. The job analysis gives rise to a written job description that identifies exactly what a person who holds a job does, how he or she does it, and why he or she does it, making "job description" the correct response. The job description may then be used to generate a job specification, or list of job qualifications, which rules out both "job specification" and "job qualifications" as correct responses. A job definition is not a recognized term in this process so it is an incorrect response.

The most important environmental factor in the HRM process is ________. A) the legal environment B) the business environment C) the natural environment D) the scientific community

(A) Though the business environment may affect the HRM process, a far more important factor for influencing the activities of HRM is the legal environment. The laws, for the most part, largely determine how HR managers do their job, making "the legal environment" the correct response. Both "the natural environment" and "the scientific community" can be ruled out because neither has a direct effect on hiring, firing, or any other HR activity.

A job description is ________. A) not a written document B) a written document used to describe a job to job candidates C) the official title for the job D) something that employers keep secret from job candidates

(B) A job description identifies what the person who has the job does, where and how he or she does it, and why he or she does it. A job description is a written document (which rules out the choice indicating that it is not a written document) that employers use to describe the job to applicants, making that the correct response. The choice indicating secrecy is ruled out because a job description is a public document that is never concealed from job candidates. A job description is an actual description, not simply a title, so "the official title for the job" is an incorrect response.

To use a physical test as a selection device, a company must demonstrate that ________. A) the test is reliable B) physical ability is related to job performance C) the test does not discriminate against people with physical disabilities D) the test is fair

(B) A physical test may be used as a valid selection device if it can be shown that job performance requires physical ability. This makes "physical ability" the correct response. Whether or not the test is fair, reliable, or discriminatory is not relevant in this situation. Validity comes before all other concerns: first, the test must be shown to affect job performance, and then, and only then, should it be judged on other criteria.

An accept error occurs when an applicant ________. A) who is hired performs adequately on the job B) who is hired performs poorly on the job C) who is not hired is hired by another firm D) who is not hired would have performed well on the job

(B) An accept error occurs when the person who is accepted for the job performs poorly, making that the correct choice. The choice indicating an applicant who is not hired but would have performed well on the job is incorrect because it describes a reject error, not an accept error. The choice regarding being hired by another firm is incorrect because it does not match one of the four outcomes of the selection process. The choice regarding adequate performance is incorrect because it describes a correct decision in the selection process.

Stress has ________ symptoms. A) only psychological and behavioral B) psychological, behavioral, and physical C) only psychological D) only physical

(B) Stress affects individuals in three ways-psychologically, behaviorally, and physically-making that the correct answer and eliminating the other choices. An example of psychological effects includes anxiety. An example of physical effects includes changes in blood pressure. An example of behavioral effects includes people becoming distracted.

The "white-water rapids" metaphor envisions an organization as ________. A) a large ship on a calm sea B) a small raft on a raging river C) a large ship on a roiling sea D) a small raft on a calm river

(B) The "white-water rapids" metaphor sees the organization as a small raft being tossed on an unending series of white-water rapids, being buffeted and nearly capsizing at each step of the journey. This makes "a small raft on a raging river" the correct response and eliminates the two choices regarding ships because they match the organization with a ship, not a raft. It rules out "a small raft on a calm river" because it characterizes the water as calm instead of raging.

Which of the following statements is true? A) Both power and authority are rights. B) Authority is a right. C) Power is a right. D) Authority is one's ability to influence decisions.

(B) The choices indicating that power is a right and authority is one's ability to influence decisions have the facts reversed. Power, not authority, is the ability to influence decisions, and authority is a right. That makes the choice indicating that authority is a right the correct response and also rules out the remaining choice since authority alone is a right.

A technique that helps employees deal with change that includes them in the decision-making process is ________. A) negotiation B) participation C) education and communication D) coercion

(B) When misunderstanding of change causes employee problems, simply laying out the facts can often clear up misunderstandings and greatly diminish resistance to change, making "education and communication" the correct response. Rather than appeal to logic, manipulation, co-optation, and coercion can sometimes distort logic to reduce resistance to change, so those choices are incorrect.

What kind of power does an employee with years of institutional knowledge have? What kind of authority does a prison board have? A) expert power B) Coercive power C) Referent power D) Legitimate power

(C)

Which of the following is NOT a voluntary form of downsizing? A) attrition B) early retirement C) layoff D) job sharing

(C) Attrition, early retirement, and job sharing can all be voluntary forms of downsizing in which workers choose the option rather than have it forced upon them, so they are incorrect choices. For example, many employees volunteer to take early retirement if a company offers it to them. The only choice here that employees can never exercise any control over is a layoff, which is implemented entirely by management. This makes "layoff" the correct response.

The first step in any employment planning process involves making a ________. A) job specification B) product evaluation C) human resource inventory D) job description

(C) Before an HR manager can decide whether to hire or fire, he or she must first take stock of who currently works for the organization in what is termed a human resource inventory. The inventory identifies all company employees and lists any characteristics that the manager deems relevant. A job description and job specification are steps that come later in the process, so they are incorrect choices. A product evaluation is not part of the employment planning process, so it is an incorrect response.

________ is the power that rests on the leader's ability to punish or control. A) Referent power B) Reward power C) Coercive power D) Expert power

(C) Coercive power is the power that comes from fear, so the ability to punish or control is a coercive power. This makes "coercive power" correct. The leader is not using expertise, access, or some kind of premium or bonus to influence others, so these choices are incorrect.

Which of the following is NOT a reason that managers put a lot of importance into developing a good compensation system? A) to attract talented employees B) to retain talented employees C) to avoid breaking the law D) a sense of fairness

(C) Employers try to develop a good compensation system out of a sense of fairness and to lure and retain high-quality employees. They are not, however, required by law to pay employees anything more than minimum wage, meaning that avoiding breaking the law is hardly ever a reason that employers try to implement a good compensation system, so it is the correct response here.

In recent years, organizations have become more ________ to be responsive to a dynamic business environment. A) centralized B) mechanistic C) decentralized D) structured

(C) The fast-changing business environment of today has made managers seek to be more flexible. A decentralized structure that can effect change from any position in the hierarchy without waiting for a centralized top-down decree is therefore favored by managers seeking flexibility. This makes "decentralized" the correct response and rules out the other three choices, all of which identify inflexible rather than flexible decision making.

Which of the following are NOT basic elements of organizational structure? A) centralization, decentralization B) work specialization, span of control C) chain of command, line authority D) departmentalization, formalization

(C) The six elements of organizational structure are given in the three incorrect choices: work specialization, span of control, centralization, decentralization, departmentalization and formalization. Chain of command and line authority are not included as basic elements of organizational structure, so "chain of command, line authority" is the correct response.

Anika loves being a professional dancer, but she feels stress from the tension-packed, high-pressure, fear-filled demands of helping motivate members of her group. She is likely to be experiencing stress from ________. A) role overload B) too much autonomy C) organizational leadership D) role ambiguity

(C) When the workplace atmosphere has too much pressure, organizational leadership is usually at fault, making that the correct response. Role overload and role ambiguity could create stress, but they would not create an atmosphere of tension and fear, so they are incorrect responses. Too much autonomy can be problematic, but it also would not create a fearful atmosphere, so "too much autonomy" is incorrect.

The chain of command answers the question A) Where do i go for help B) How do i know hen the task is completed C) What are the rules D) Who reports to whom?

(D)

________ indicates how consistently a selection device measures a criterion. A) Validity B) Qualification C) Operational scoring D) Reliability

(D) A selection device must be consistent from situation to situation or it should not be used. For example, if the same individual gets wildly different scores after taking the same test, it is likely that either the test (or the individual) is flawed or in some way not reliable. This makes "reliability" the correct response and rules out the other choices.

Recruitment is the process of ________. A) assessing the national, international, and local labor market B) hiring from outside the organization C) hiring from inside the organization D) locating, identifying, and attracting potential employees

(D) Recruitment is the process of finding people who are qualified and well-suited for the job you are offering. To recruit successfully, you must locate where likely applicants are, identify individuals who are well-suited to the job, and attract them to the job by making them aware of its features and advantages. This makes that choice the correct response. Both "hiring from outside" and "hiring from inside the organization" can be eliminated because recruiting finds applicants both inside and outside of the organization. The choice regarding assessment can be ruled out because assessing the labor market does nothing to get applicants to actually apply for a job.

During an interview, an applicant for a managerial job is confronted with role players who make the claim that they have been "harassed on the job." The applicant is then asked to deal with the complaints. What kind of selection device is being used? A) performance-simulation test B) high-stress interview C) structured interview D) behavioral interview

(D) The applicant is asked to deal with a difficult situation that involves role-playing in a behavioral or situation interview. This is not a performance-simulation test since it is clearly part of an interview, not a test. Requiring the applicant to engage in role-playing goes beyond the structured interview, and though the interview is stressful, a high-stress interview is not a recognized term used in the interview process.

The line of authority that extends from the upper levels of management to the lowest levels of the organization is termed the ________. A) chain of responsibility B) staff authority C) unity of command D) chain of command

(D) Unity of command refers to a single authority prevailing when organizational conflicts arise rather than a hierarchical authority. Staff authority refers to the authority that staff managers have over support personnel. Only the chain of command describes the hierarchical relationship between levels of an organization with respect to authority, so that is the correct response. "Chain of responsibility" is incorrect because it is not a recognized term.

Grouping jobs on the basis of major product areas is termed customer departmentalization. A) True B) False

(False)

In an organization, only a manager can be a change agent. A) True B) False

(False)

A mechanistic organization is bureaucratic and hierarchical. A) True B) False

(True)

An aggressive new competitor in the marketplace is an external force that creates a need for organizational change that companies frequently face today. A) True B) False

(True)

Departmentalization is how jobs are grouped. A) True B) False

(True)

Employee referrals are usually reliable. A) True B) False

(True)

Employment planning includes two steps: assessing current human resources needs and developing a plan to meet those needs. A) True B) False

(True)

Human resource management involves training, motivating, and retaining competent employees. A) True B) False

(True)

Organizational change can be any alteration in an organization's people, structure, or technology. A) True B) False

(True)

Hierarchical organizations tend to be ________ while "flatter" organizations tend to be _________.

A centralized organization is one in which decision making takes place almost entirely at the top of the organization. A decentralized organization is one in which lower level managers are empowered to make decisions.

A company like Sony that organizes around product groups has a _______ structure.

A divisional structure is one in which the structure is made up of separate business unites or divisions. This is different from a functional structure in which units are built around their occupational specialties (e.g., accounting, human resources, finance, etc.).

A written statement of what a job entails, how the job is done and why its done

A job description is a formal written document that specifies what, how and why of a job. A job specification is a written statement of the minimum qualifications for the job in terms of skills, knowledge, attitudes. A job analysis is an activity that identifies the skills and behaviors associated with a job that provides the basis for the job description and job specification.

An organization that is high in specialization, formalization and centralization is called this:

A mechanistic organization describes the typical bureaucracy: lots of specialization (e.g., that's not my job responsibility, you must talk to 'X'; lots of formalized rules; and high centralized power). This is the opposite of an organic organization that is low in specialization, formalization and centralization.

Telling a job candidate both the positive and negative about an organization.

A realistic job preview is one that let's the candidate know both the good and bad about the job and the company so they can make a realistic, informed decision about whether to join.

A manager's employees are _______ for the work they have been assigned.

Accountable Authority is the power that comes with the position to make others do what you want. A responsibility is an obligation to perform an assigned duty: employees are responsible for the work to which they've been assigned. Employees are accountable for their work, and managers are accountable for the performance of their employees.

The three ways an organization can change.

Changing structure involves changing authority relationships, job redesign, departmentalization, and spans of control. Changing technology involves altering work processes, work methods, and introducing new equipment. Changing people involves changing employees' attitudes, expectations, perceptions and behavior.

A coach benching a player for violating team rules is exerting ________ power.

Coercive power is the ability to get someone to do what you want out of fear of reprisal (in this case, having playing time taken away). It is the opposite of reward power which is the ability to get someone to do what you want because you can give them something that they want. Legitimate power is the power that comes from the formal position in the hierarchy and is synonymous with authority. Expert power is power based on one's unique expertise, skill set, or knowledge. Referent power comes from being identified with a person who has desirable resources or traits (e.g., being the best friend of the most popular person in school).

When demand for a company's goods and services declines, an HR manager should look for ways to do this.

Downsize The need for new employees is correlated to the demand for the products and services the company provides. As demand increases, more employees are needed. As demand decreases, the company needs fewer employees.

This recruiting source yields high quality recruits but can reduce diversity.

Employee referrals often provide the best candidates because the referrer has detailed knowledge about what makes a good employee for the organization. However, employee referrals tend to bring the organization more employees like it already has. Advertisements can be more effective at increasing diversity because they can be targeted to specific groups. However, advertisements give the organization low control over the quality of the applicant.

The two categories of factors that cause stress.

Factors that create stress can be grouped into two major categories—job-related and personal stressors. The discussion that follows organizes stress factors into five categories: task, role, and interpersonal demands, organization structure, and organizational leadership. Task demands are factors related to an employee's job. Design of the person's job, working conditions, and the physical work layout. Work quotas can put pressure on employees. The more interdependence between an employee's tasks and the tasks of others, the more potential stress there is. Autonomy tends to lessen stress. Role demands relate to pressures placed on an employee as a function of the particular role he or she plays in the organization. Role conflicts create expectations that may be hard to reconcile or satisfy. Role overload is when the employee is expected to do more than time permits. Role ambiguity is created when role expectations are not clearly understood. Interpersonal demands are pressures created by other employees. Lack of social support from colleagues and poor interpersonal relationships can cause considerable stress. Organization structure can increase stress. Excessive rules and an employee's lack of opportunity to participate in decisions. Organizational leadership represents the supervisory style of the organization's company officials. Some managers create a culture characterized by tension, fear, and anxiety. Unrealistic pressures to perform in the short run, excessively tight controls, and firing employees who don't measure up. Personal factors that can create stress include family issues, personal economic problems, and inherent personality characteristics. Some employees bring their personal problems to work with them. Employee personality can have an effect on how susceptible he/she is to stress. Type A personality is characterized by feelings of a chronic sense of time urgency, an excessive competitive drive, and difficulty accepting and enjoying leisure time. Only the hostility and anger associated with Type A behavior is actually associated with the negative effects of stress. Type B's never suffer from time urgency or impatience. Type B's are just as susceptible to the same anxiety-producing elements.

This type of departmentalization groups by the functions they perform.

Functional Departmentalization Functional departmentalization is the grouping of employees by the function they perform (e.g., accounting, finance, operations, HR). Geographic departmentalization is the grouping of employees based on geography or territory. Product departmentalization is the grouping of employees based on major product areas. Customer departmentalization is the grouping of employees by the customers they serve. Process departmentalization is the grouping of employees on the based of work or customer flow.

Survey feedback, process consultation, team-building and intergroup development are all _____ activities.

Organizational Development Organizational development consists of efforts by the organization to assist members with adapting to the change by focusing on their attitudes and values. Survey feedback is used to assess employee attitudes and perceptions towards the change. Process consultation is the bringing in of external consultants to evaluate organizational processes. Team building involves activities designed to encourage positive interpersonal relationships, clarify roles and responsibilities, and build unity. Intergroup development consists of activities designed to make different groups more cohesive within the organization.

Accepting ambiguity, tolerating risk, and minimizing external controls all encourage ________.

Organizational cultures that are innovative tend to have the following attributes: Accept ambiguity Tolerance of the impractical Minimization of external controls Tolerance of risk Tolerance of conflict Focus on ends rather than means Open-system focus Positive feedback

This HR activity introduces the new employee to his/her job, colleagues and the organization.

Orientation is the process of introducing a new employee to the job (job orientation) and organization (organizational orientation). Typically new employees are also introduced to their co-workers as well; this is called work unit orientation. The goal of orientation is to make the employee feel comfortable through familiarization.

Uncertainty, fear of losing status or possessions, habit, and perceived conflict with company goals.

Reasons people resist organizational change. People resist organizational change for multiple reasons. One is that change necessarily introduces uncertainty or the unknown which can be frightening. Habit is also a reason employees resist change: people like what they are used to and familiar with. Some employees resist change because they fear that the change will result in a loss of status or resources as a result of the change. Finally, some employees resist change because they believe the change is bad for the company. This basis for change is actually the least concerning if expressed positively because it may allow the organization to see the issue in a new way.

is rejecting a candidate who would have ultimately succeed in the organization. It could be argued that the Chargers committed a reject error in not drafting Peyton Manning who has been one of the most successful NFL quarterbacks in the history of the league.

Reject error

An instrument is _____ if it consistently measures the same thing.

Reliability means that the instrument (selection device) consistently measures the same attributes across candidates, settings, etc. Validity means that whatever the instrument measures has a proven relationship with some relevant criterion such as job performance, longevity, organizational fit etc.

When an employee has stress because they are expected to do more than time allows.

Role demands are pressures that result from the employee's role in the organization. Role conflicts occur when expectations are hard to reconcile with other aspects of the job or difficult to satisfy. Role overload occurs when too much is being asked of the employee in terms of work load and available time/resources. Role ambiguity is when the employee does not clearly understand what the expectations are.

When the San Diego Chargers drafted Ryan Leaf they committed a ______.

Ryan Leaf (http://en.wikipedia.org/wiki/Ryan_Leaf) is considered one of the biggest draft busts in National Football League history. As a rookie Leaf had numerous public incidents of bad behavior, and his on-field performance was consistently poor. He was released by the Chargers after only three seasons. An accept error is hiring someone who is ultimately unsuccessful in the organization. The Chargers' accept error was that they hired Leaf who was ultimately unsuccessful.

Susie can supervise four subordinates effectively. This number is known as Susie's _______.

Span of control is the number of employees a manager can effectively supervise.

Eric Barron's assistant has this type of authority.

Staff authority is authority that comes from being in a position that supports another position with line authority (the direct authority of one position over another). For example, the aide-de-camp of a general in the Army will have staff authority over other officers because he (or she) supports the senior officer at the top of the hierarchy.

Job interviews are typically either ______ or _______.

Structured or Behavioral A structured interview is when a specific set of predetermined questions are asked of the candidate. These questions are developed for reliability and validity. A behavioral interview is one in which the candidates are given a situation and asked to respond to it (or perhaps asked how they responded in a similar situation in the past). See the video on Slide 26 of the October 8 slides for more insight.

Symptoms of stress can exhibit themselves in these ways:

Symptoms of stress can be seen in employees psychological makeup (depression, anxiety), physical condition (sweating, weight loss or gain, hygiene) and behavior (isolation, acting out, violence).

Autonomy, working conditions and work layout.

Task demands are factors related to an employee's job that can cause stress. Not enough autonomy can increase stress because the worker feels like they lack control to affect the outcome. Repetitive, non-varied work can increase stress through boredom. Undesirable or unsafe working conditions can also cause stress.

A view of organizational change as relatively rare and predictable.

The calm waters metaphor is one in which organizational change is liked to a large ship moving across calm waters and experiencing the occasional storm. The white-water rapids metaphor conceptualizes organizational change as ever-present, turbulent and difficult to navigate.

Obtaining, training, motivating, and keeping employees.

The concerns of HR management. HR managers are concerned with obtaining the best employees for the organization; training them on how to do their job; motivating them through compensation and job satisfaction; and keeping top employees in the organization.

Someone who is easy going and accepting of change.

Type B Personalities are people who are relaxed and more adaptable. Type A personalities are very driven and excessively competitive. It should be noted that most people tend to be neither wholly Type A or Type B.

This way of organizing work is also known as the division of labor.

Work Specialization Instead of having individuals do every aspect of a work activity, it is often more productive to multiple employees to focus on a single activity.