Exam 2 Knowledge Checks

In KPMG's 2017 survey of the 250 largest companies worldwide, approximately what percentage reported their corporate social responsibility? a. 93% b. 22% c. 100% d. 48%

a. 93%

The saying, "Nothing fails like success," tells us what about organizational change? a. High performance can lead to overconfidence and failure to change. b. Successful companies use special practices to maintain the status quo. c. Static upper-level management supports organizational level change. d. Successful firms find it easier to change than those performing poorly.

a. High performance can lead to overconfidence and failure to change.

Which question should be addressed to determine whether your objective is measurable? a. How will I know when it is accomplished? b. What are the requirements and constraints? c. What do I want to accomplish? d. Who is involved?

a. How will I know when it is accomplished?

Which statement is accurate regarding the attraction-selection-attrition (ASA) process? a. Person-organization misfit has little impact on employee turnover. b. The ASA process aids organizations in maintaining the relative heterogeneity of employee personalities and values. c. Individuals self-select the companies for which they choose to work. d. Due to economic circumstances, companies today hire people for fit with job responsibilities and are unconcerned about fit with culture.

a. Person-organization misfit has little impact on employee turnover.

A manager prepared for an employee's annual performance review by creating goals and objectives for the employee, scheduling a meeting, and presenting the employee with the goals and objectives. The employee agreed to meet these by the following year's annual review. What did this manager do wrong? a. The manager did not involve the employee in setting agreed upon goals and objectives prior to the meeting. b. The employee didn't create the goals and objectives prior to the meeting and present them to the manager. c. Goals and objectives should not be part of the annual review. d. The manager didn't plan to review the goals and objectives at mid-year.

a. The manager did not involve the employee in setting agreed upon goals and objectives prior to the meeting.

Which statement regarding culture creation is correct? a. When the organization's way of doing business provides a successful adaptation to environmental challenges, those beliefs and values are retained. b. New organization members are rarely taught the "way of business" in the firm; they simply acquire that knowledge through daily activities. c. An organization's culture is shaped only by internal environmental factors. d. Studies show the only factor consistently found to determine culture creation in a firm is the founder's values.

a. When the organization's way of doing business provides a successful adaptation to environmental challenges, those beliefs and values are retained.

Chyron is vehemently opposed to the restructuring of jobs in his department. He decides that since no one is listening to what he has to say, he will get their attention by damaging some parts he is making for tomorrow's shipment. This is an example of what kind of change reaction? a. active resistance b. enthusiastic support c. passive resistance d. compliance

a. active resistance

As the analysis of leadership characteristics has evolved, the concept of what makes a strong leader has moved from a. all powerful and knowing to humble and open to feedback. b. super-smart to average intelligence. c. abusive to all knowing and powerful. d. tall and handsome to average and of moderate attractiveness.

a. all powerful and knowing to humble and open to feedback.

If onboarding activities are successful, employees a. are more confident about their ability to perform in the organization and likely to remain longer with the firm. b. experience greater job satisfaction but are no more likely to remain with the firm than employees who did not onboard. c. feel accepted by their peers but do not necessarily share the values and norms of the larger organization. d. feel comfortable in the organization but have no greater belief in their efficacy than those employees who did not onboard.

a. are more confident about their ability to perform in the organization and likely to remain longer with the firm.

Objectives typically are a. clear, concise, and understandable. b. related directly to the values of the company. c. stated in terms of the corporate mission. d. the same thing as goals.

a. clear, concise, and understandable.

Heather meets with her subordinates on a regular basis to share concerns and information with the group. She takes their feedback but makes decisions on her own. According to the leadership decision tree, Heather's decision-making style is to a. consult. b. align c. delegate. d. decide.

a. consult.

Compared to other styles, effects on decision quality or employee productivity are weaker when leaders use which decision making style? a. democratic b. authoritarian c. autocratic d. laissez-faire

a. democratic

Research findings of leader behaviors suggest a. extremely high levels of leader task-oriented behaviors may lead to burnout in employees. b. when leaders are task-oriented, employees are more satisfied. c. task oriented behaviors tend to be more effective in large companies. d. employees who work under people-oriented leaders are more productive.

a. extremely high levels of leader task-oriented behaviors may lead to burnout in employees.

For abusive leaders, research has found a correlation between their negative behavior with employees and their a. inability to regulate their emotions. b. ability to get control of the situation. c. inability to get attention. d. desire to establish trust.

a. inability to regulate their emotions.

Task-oriented behaviors are also called a. initiating structure. b. neuroticism. c. authoritarian structure. d. consideration.

a. initiating structure.

Employees engage in higher levels of conflict when leaders use which decision making style? a. laissez-faire b. authoritarian c. autocratic d. democratic

a. laissez-faire

Research on mentoring suggests a. mentor training enhances program outcomes. b. the mere existence of a program ensures its success. c. mentor and protégé input have little impact on satisfaction or success. d. mentor characteristics are less important than willingness to participate.

a. mentor training enhances program outcomes.

It is more common to see rewards tied to performance indicators as opposed to seniority or loyalty in companies whose cultures are a. outcome-oriented. b. team-oriented. c. aggressive. d. innovative.

a. outcome-oriented.

A well-known Fortune 500 CEO dresses up in a different outlandish costume each year for a presentation during the annual stockholder meeting. The presentation is broadcast to all divisions and offices of the firm and employees enthusiastically view the proceedings. This scenario is an example of what visual element of culture? a. rituals b. policies c. artifacts d. stories

a. rituals

If the company mission statement does not affect employee behavior on a day-to-day basis, it: a. serves as an aspirational goal for employee behavior. b. has little usefulness in understanding the company's culture. c. guides managers, but not frontline employees. d. Likely reflects only the founder's philosophy.

a. serves as an aspirational goal for employee behavior.

Examples of measures used in objectives include a. stock price. b. staff morale. c. the economic environment. d. new product development.

a. stock price.

Best practices relating to performance reviews suggest that goals and objectives should inspire, challenge, and a. stretch capabilities. b. be limited to a couple ideas. c. not exceed current expectations. d. avoid discussion of the reward system.

a. stretch capabilities.

To ensure all cast members share and embrace the history of Walt Disney World, new hires at the resort must take courses on traditions at Disney. With these classes, the Walt Disney Company is creating a a. strong culture. b. counterculture. c. weak culture. d. subculture.

a. strong culture.

Novalee makes it a point to talk to her subordinates every day about what is going on in their personal lives. She always congratulates them when they share successes and has a kind word and "a shoulder to cry on" if necessary when things are not going well. Novalee has a ___________ leadership style. a. supportive b. achievement-oriented c. directive d. participative

a. supportive

Characteristics of MBO include a. systematic and organized. b. a detailed roadmap for implementation. c. improving communication by centralizing decision making d. all of these.

a. systematic and organized.

Malcolm is the manager of his department. After performance evaluations, he gives those who have met their goals for the year a pay raise. He gives his employees their assignments and leaves them to do their work, but does monitor them so that if he notices a potential problem, it gets resolved before causing difficulties. What contemporary leadership style is Malcolm demonstrating? a. transactional leadership b. transformational leadership c. servant leadership d. laissez-faire leadership

a. transactional leadership

What tips to achieve the servant leadership style are suggested in the text? a. Establish SMART goals for each employee and ensure they reach them. b. Help employees reach their goals. c. Have all of the answers and tell employees how they can achieve their goals. d. Establish consistent employee reviews.

b. Help employees reach their goals.

Which statement is accurate regarding Robert House's path-goal theory of leadership? a. Each leadership style identified in the path-goal theory is effective depending on the trait(s) of the leader. b. Leaders can create high performing employees by making sure employee effort leads to performance and that performance is rewarded with desired rewards. c. House's path-goal theory of motivation is based upon the equity theory of motivation. d. The role of the leader in the path-goal theory is to match leadership style with employee needs.

b. Leaders can create high performing employees by making sure employee effort leads to performance and that performance is rewarded with desired rewards.

When setting an objective, you should answer six "W" questions. Which one relates to identifying requirements and constraints? a. Why? b. Which? c. Who? d. What?

b. Which?

The leadership style that sets goals for employees and encourages them to reach their goals is a. participative. b. achievement-oriented. c. directive. d. supportive.

b. achievement-oriented.

There are a number of things organizations can do prior to change to prepare employees, including a. providing employees with HR support in the event they choose to leave the organization. b. allowing employees to participate. c. waiting until the change is imminent before telling employees about it. d. communicating the pros and cons of the expected change.

b. allowing employees to participate.

Artifacts reflecting values of an organization include a. mission statements. b. an office layout with open spaces. c. shared principles. d. all of these.

b. an office layout with open spaces.

"People are generally dishonest" is an example of a cultural a. value. b. assumption. c. orientation. d. artifact.

b. assumption.

Organizational culture consists of three levels: a. assumptions, orientations, and beliefs. b. assumptions, artifacts, and values. c. beliefs, values, and attitudes. d. hierarchies, rituals, and roles.

b. assumptions, artifacts, and values.

In personal scorecard, the financial goals a. reflect the goals related to your health and well-being. b. capture your needs and aspirations about money. c. reflect those strengths that you wish to be distinguishing features. d. refer to your skills with regard to personal learning and growth.

b. capture your needs and aspirations about money.

In personal scorecard, the financial goals a. reflect those strengths that you wish to be distinguishing features. b. capture your needs and aspirations about money. c. refer to your skills with regard to personal learning and growth. d. reflect the goals related to your health and well-being.

b. capture your needs and aspirations about money.

The degree to which decision-making authority is concentrated at higher levels in an organization refers to a. formalization. b. centralization. c. mechanization. d. departmentalization.

b. centralization.

Nelson is the manager of a marketing department in a medium sized company with six employees reporting to him. In deciding the goals for the department for next quarter, he schedules a meeting for employee input and direction. Nelson uses a(n) ___________ style of decision making in the marketing department. a. laissez-faire b. democratic c. supportive d. autocratic

b. democratic

Willard is a manager in a large manufacturing firm. He sets a tight production schedule every day and makes certain each employee knows what job they are performing that day and how to perform it. Willard appears to have a ___________ leadership style. a. supportive b. directive c. achievement-oriented d. participative

b. directive

Research findings of leader behaviors suggest a. task oriented behaviors tend to be more effective in large companies. b. extremely high levels of leader task-oriented behaviors may lead to burnout in employees. c. employees who work under people-oriented leaders are more productive. d. when leaders are task-oriented, employees are more satisfied.

b. extremely high levels of leader task-oriented behaviors may lead to burnout in employees.

A company is organized into accounting, marketing, human resource management, and production departments. Employees handle a wide variety of transactions. This firm has a ________ structure. a. product b. functional c. divisional d. matrix

b. functional

Research indicates that employees tend to stay longer in ___________ cultures. a. detail-oriented b. people-oriented c. stable d. outcome-oriented

b. people-oriented

Mikhail is a manager at Acme Manufacturing. He strives to show concern for his employees' feelings and to treat them with respect. What leader behavior is he exhibiting? a. object-oriented. b. people-oriented. c. autocratic-oriented. d. task-oriented.

b. people-oriented.

In the SMART criteria, what does the "R" stand for? a. relative b. realistic c. reasonable d. reactive

b. realistic

The degree to which a person is at peace with themselves and has an overall positive assessment of their self-worth and capabilities is related to their a. self-efficacy. b. self-esteem. c. integrity. d. agreeableness.

b. self-esteem.

What characterizes a strong organizational culture? a. outperforms competitors b. shows consensus among employees on company values c. embraces change d. gives daily communication and feedback

b. shows consensus among employees on company values

Behavioral approaches to leadership behaviors fail to consider a. initiating structures and employee consideration. b. the environment in which behaviors occurred. c. leadership effectiveness. d. the leader's decision-making style.

b. the environment in which behaviors occurred.

The timing for a performance evaluation should coincide with a. the company's annual budget process. b. the needs of the employee and the organization. c. the company's fiscal year. d. the employee's annual pay raise.

b. the needs of the employee and the organization.

Miguel is a department manager in a family-owned retail store. He and his subordinates clash over scheduling and other procedural aspects of the job almost daily. While having the title of manager, Miguel makes few decisions for the department, instead implementing those relayed by the owner. The sales associate positions as well as his managerial position do not have specific duties tied to them; instead everyone is supposed to do "whatever it takes." According to Fiedler's contingency theory, the situation would best be described as a. controlled. b. unfavorable. c. favorable. d. medium favorable

b. unfavorable.

A Balanced Scorecard relies on which process to bind short-term activities to long-term activities? a. creating a vision b. succession planning c. communicating and linking d. performance metrics

c. communicating and linking

Which statement regarding functional structures is accurate? a. Jobs are based on differences in functions. b. Each person handles a small volume of transactions. c. Departments may include manufacturing, finance, accounting, human resources, and information technology. d. Each person is trained to do several job functions.

c. Departments may include manufacturing, finance, accounting, human resources, and information technology.

Which question should be addressed to determine whether your objective is measurable? a. What do I want to accomplish? b. What are the requirements and constraints? c. How will I know when it is accomplished? d. Who is involved?

c. How will I know when it is accomplished?

Which statement about corporate social responsibility (CSR) is accurate? a. It bears no relationship to stock valuation. b. It is more prevalent in the U.S. than in Europe or Asia. c. It has been gathering momentum for over a decade. d. No positive links between CSR and firm financial performance have been identified.

c. It has been gathering momentum for over a decade.

Which statement regarding change is accurate? a. Organizational change has limited forms in modern business. b. Organizational change usually involves technology, not the management of people. c. Organizational change may involve structure, strategy, policies, procedures, technology, or culture. d. Organizational change is rarely successful.

c. Organizational change may involve structure, strategy, policies, procedures, technology, or culture.

What can employees do to improve the leader-employee relationship? a. Increase organizational expectations. b. Decrease empowerment demands. c. Seek feedback to improve their performance. d. Resist engaging in political behaviors.

c. Seek feedback to improve their performance.

Because they are sometimes seen as submissive, ________ people who are good natured, modest, and avoid conflict are less likely to be perceived as leaders. a. extraverted b. neurotic c. agreeable d. conscientious

c. agreeable

The corner office, mahogany desks and credenzas, gold name plates on office doors, and reserved parking places are examples of cultural a. assumptions. b. beliefs. c. artifacts. d. values.

c. artifacts.

When leaders make decisions alone without involving employees in the decision-making process, they are using a. democratic decision making. b. participative decision making c. autocratic decision making. d. laissez-faire decision making.

c. autocratic decision making.

When leaders make decisions alone without involving employees in the decision-making process, they are using a. laissez-faire decision making. b. participative decision making c. autocratic decision making. d. democratic decision making.

c. autocratic decision making.

A modular organization is a type of ________ organization because it eliminates traditional barriers by outsourcing nonessential functions. a. learning b. mechanistic c. boundaryless d. matrix

c. boundaryless

A Balanced Scorecard relies on which process to bind short-term activities to long-term activities? a. performance metrics b. creating a vision c. communicating and linking d. succession planning

c. communicating and linking

Out of all personality traits, the one with the strongest relationship to both leader emergence and leader effectiveness is a. openness. b. agreeableness. c. extraversion. d. conscientiousness.

c. extraversion.

Raul works for an international company that has an executive level and regional managers. Everyone else reports to one of the regional managers. This is an example of a ________ structure. a. formal b. tall c. flat d. departmental

c. flat

By one estimate, the primary reason managers who start a new job fail, or either voluntarily or involuntarily leave, is not being able to a. gain understanding of whether their behavior fit with the company culture. b. take advantage of a systematic approach to onboarding. c. form effective relationship with colleagues. d. seek feedback.

c. form effective relationship with colleagues.

Vroom, Yetton, and Jago's normative decision model was meant to a. standardize the decision-making process in large firms. b. help employees make short-term decisions. c. help leaders determine how much involvement they should seek when making decisions. d. help managers develop long-term goals and objectives.

c. help leaders determine how much involvement they should seek when making decisions.

Matrix organizational structures are characterized by a. decreased response time for customer demands. b. unity of command. c. increased communication within the organization. d. manager independence.

c. increased communication within the organization.

Which tool is used by transformational leaders to challenge organizational norms and status quo, and encourage employees to think creatively and work harder? a. management by exception b. religious inspiration c. intellectual stimulation d. contingent rewards

c. intellectual stimulation

The most common appraisal error is a. a desire to show authority. b. favoritism. c. leniency. d. preconceived notions.

c. leniency.

In a personal Balanced Scorecard, __________ reflects your values and philosophy of life. a. goal b. objective c. mission d. vision

c. mission

Organizational culture is most related to the P-O-L-C function of a. controlling. b. planning. c. organizing. d. leading.

c. organizing.

The information system department's employees are highly skilled individuals who possess an internal locus of control. The firm is looking to hire a manager for the department to replace the retiring manager. What type of leadership style would likely be most effective with this group? a. directive b. achievement-oriented c. participative d. supportive

c. participative

Cho knew the market for high-end clothing was changing, so she surveyed her managers and their employees for suggestions on what changes needed to be made to the company's marketing plan. This demonstrates which leadership style? a. achievement-oriented leadership b. supportive leadership c. participative leadership d. directive leadership

c. participative leadership

Companies that are collaborative and emphasize cooperation among employees have a(n) ___________ culture. a. people-oriented b. outcome-oriented c. team-oriented d. detail-oriented

c. team-oriented

Who is generally responsible for setting goals and objectives in an organization? a. Stakeholders b. Employees c. Customers d. Leadership

d. Leadership

Which statement is accurate regarding Lewin's final stage of planned change? a. Declare victory early in making the change and get into a routine. b. Employees should be informed of the results of change only after sufficient time has passed since the change effort. c. Reward all employees regardless of whether they embraced the change effort. d. Change mindsets so change becomes a regular part of corporate culture.

d. Change mindsets so change becomes a regular part of corporate culture.

In completing a Big Five personality inventory, Landon was found to have high openness to experience. He would be most likely attracted to an organization like a. the IRS, which has a bureaucratic structure and authoritarian decision-making processes. b. General Motors, with a tradition-bound culture experiencing serious viability issues. c. Target, where jobs tend to be structured in their duties and responsibilities. d. Google, with a laid-back, innovative culture.

d. Google, with a laid-back, innovative culture.

Which statement about leader-member exchange (LMX) theory is accurate? a. In high LMX relationships, the leader does their job and the member does theirs. b. High LMX relationships involve an active dislike between the leader and member. c. In low LMX relationships, both leader and member go above and beyond their job descriptions to assist the other party in succeeding. d. In high LMX relationships, the leader has a trust-based relationship with the member.

d. In high LMX relationships, the leader has a trust-based relationship with the member.

During an interview, you should make notes on dress code, building structure, and whether employees look stressed. This is part of which method to evaluate the culture of a company? a. Do your research. b. Ask questions. c. Reflect on how you are treated. d. Observe the physical environment.

d. Observe the physical environment.

Under Fielder's contingency theory, an LPC (least preferred coworker) score is similar to a. an expectancy. b. a decision-making style. c. a task structure. d. a personality trait.

d. a personality trait.

Abusive leaders are costly to organizations because of a. lost productivity. b. increased absenteeism. c. increased health care costs. d. all of these.

d. all of these.

Indira overhears a professor in the school of business saying that having a finance degree guarantees you a job after graduation. She also notices some job postings for finance majors at the career center. Even though she is currently studying communications, Indira decides to change her major immediately. Indira's decision seems to be affected by a. escalation of commitment bias. b. anchoring and adjustment bias. c. framing bias. d. availability bias.

d. availability bias.

Bettie's Bakery sold out of their muffins every day last week. Bettie thought that it was because she changed the recipe slightly and now her customers loved the muffins. She decides to triple her muffin output for the following week. However, muffin sales fall because the temporary increase was related to purchases for Teacher Appreciation Week. Bettie experienced a(n) a. availability bias. b. overconfidence bias. c. framing bias. d. correlation and causality bias.

d. correlation and causality bias.

What is a benefit of centralized organizational structure? a. enhanced creativity b. greater employee empowerment c. less pressure on higher level managers d. cost savings in purchasing operations

d. cost savings in purchasing operations

A company was organized into the detergent area, the dishwashing soap area, and the health and beauty aid area. Marketing and manufacturing take place at each location. This firm has a ________ structure. a. matrix b. functional c. mechanistic d. divisional

d. divisional

Generally, goals and objectives serve to a. gauge and report performance. b. improve performance. c. align effort. d. do all of these.

d. do all of these.

Organic structures can be described as a. highly formalized and centralized. b. a cross between a functional structure and a product structure. c. focused on maximizing efficiency and minimizing costs. d. flexible and decentralized with low levels of formalization.

d. flexible and decentralized with low levels of formalization.

Walker seldom loses his temper at work and always demonstrates empathy for others. He is internally motivated and has many admirable social skills. Walker appears to have a. low mental ability. b. high mental ability. c. low emotional intelligence. d. high emotional intelligence.

d. high emotional intelligence.

The Balanced Scorecard focuses on four types of measures, including which one that looks at organizational efficiency? a. customers b. learning and growth c. financial performance d. internal processes

d. internal processes

According to Fiedler's contingency theory, conditions creating situational favorableness include a. context. b. conditional power. c. relative position. d. leader-subordinate relations.

d. leader-subordinate relations.

A trusted individual who provides an employee with advice and support regarding career-related matters is a a. coworker. b. trainer. c. counselor. d. mentor.

d. mentor.

Being curious, original, intellectual, creative, and open to new ideas describes the Big Five personality trait of a. organization. b. conscientiousness. c. agreeableness. d. openness.

d. openness.

It is more common to see rewards tied to performance indicators as opposed to seniority or loyalty in companies whose cultures are a. aggressive. b. team-oriented. c. innovative. d. outcome-oriented.

d. outcome-oriented.

A firm pays above average wages to its employees. Each employee is given at least two weeks of vacation and any time family matters arise, flexible arrangements are made to facilitate the employee. Each Thanksgiving, a turkey is provided to each employee, $100 gift certificates are given for the holidays, and during the summer the firm pays for each employee and one guest to attend an all-expense-paid day at the local amusement park. This firm seems to be a(n) ___________ company. a. team-oriented b. service-oriented c. outcome-oriented d. people-oriented

d. people-oriented

Which of Lewin's steps for planning change ensures that the change becomes permanent? a. unfreezing b. prefreezing c. freezing d. refreezing

d. refreezing

The CEO of Microsoft, Satya Nadella, issued an apology for an inflammatory statement he made at a major industry event. This is an example of which of the six steps to culture change? a. creating a sense of urgency b. changing leaders c. training d. role modeling

d. role modeling

In the SMART criteria, what does the "S" stand for? a. strategy b. skills c. standards d. specific

d. specific

Best practices relating to performance reviews suggest that goals and objectives should inspire, challenge, and a. be limited to a couple ideas. b. not exceed current expectations. c. avoid discussion of the reward system. d. stretch capabilities.

d. stretch capabilities.

As the population in the country became more diverse, P&G began to manufacture and sell variations of its product that would appeal to different cultures. This demonstrates how _______ can cause organizational change. a. generational events b. technology c. raw materials d. the environment

d. the environment

According to Daniel Goleman, effective leaders are different from ineffective leaders due to their a. understanding of the mission of the company. b. years of management experience. c. ability to control the activities of others. d. understanding of other people's emotions.

d. understanding of other people's emotions.

Your objective is probably realistic if a. it is hard. b. it has an open time frame. c. it is easy. d. you believe it can be accomplished.

d. you believe it can be accomplished