Management exam 2

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

delegate

tall structure

tall structure A tall structure is characterized by an overall narrow span of management and a relatively large number of hierarchical levels.

team-based structure

A team-based structure is one in which the entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals.

Accountability

Accountability means that people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

Decision making

Decision making is the process of identifying problems and opportunities and then resolving them.

Risk propensity

Risk propensity is the willingness to undertake risk with the opportunity of gaining an increased payoff.

Social learning

Social learning means to learn informally from others by using social media tools, including mobile technologies, social networking, wikis and blogs, virtual games, and so forth.

Reema is the manager of a fast-food restaurant. She uses rational methods and minimal information to solve day-to-day issues and to make quick decisions that support the needs of the restaurant. Reema encourages her team members to adhere to existing rules and policies when they make their own decisions and come up with simple solutions to problems. Which of the following decision styles does Reema use? a. The directive style b. The analytical style c. The conceptual style d. The behavioral style

a. The directive style

Two possible tactics for overcoming resistance to change are coercion and negotiation. a. True b. False

a. True

When managers base decisions on what has worked in the past and fail to explore new options, they are: a. perpetuating the status quo. b. being influenced by emotions. c. being overconfident. d. justifying past decisions. e. seeing what they want to see.

a. perpetuating the status quo.

Louise works in the manufacturing department at Ice Sculptures. The work in Louise's department is low in task specialization. As a result, Louise: a. usually performs a single task. b. does a variety of tasks and activities. c. is often bored. d. is rarely challenged. e. generally goofs off

b. does a variety of tasks and activities.

. Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he or she has authority and responsibility for a distinct set of tasks. Employees are also aware of the company's reporting structure as well as successive management levels all the way to the top. Rebecca's company follows which of the following principles? a. Specialization principle b. Unity of command principle c. Scalar principle d. Authority principle e. Responsibility principle

c. Scalar principle

Organizing the Vertical Structure

(1)the set of formal tasks assigned to individuals and departments; (2)formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers' control; and (3)the design of systems to ensure effective coordination of employees across departments.

Collaboration

Collaboration means a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose and that are typically greater than what any of the individuals or departments could achieve working alone.

decentralization

Decentralization means that decision authority is pushed down to lower organization levels.

Anastasia, a regional manager, started a project three years ago and invested a lot of time and money in it. Despite signs of the project's failure from the beginning, she continued to invest time and money in it in the hope that the project will become successful. As a result, she incurred more losses. Which of the following biases does Anastasia exhibit in this scenario? a. Being influenced by initial impressions b. Seeing what one wants to see c. Justifying past decisions d. Being influenced by problem framing

c. Justifying past decisions

Successful change requires that organizations be capable of both creating and implementing ideas, which means the organization must learn to be: a. cordial. b. rightsized. c. ambidextrous. d. compliant. e. intra-focused.

c. ambidextrous.

Which of the following is a difference between programmed decisions and nonprogrammed decisions? a. Unlike programmed decisions, nonprogrammed decisions concern the types of skills required to fill certain jobs. b. Unlike nonprogrammed decisions, programmed decisions are made in response to situations that are unique and largely unstructured. c. Unlike programmed decisions, nonprogrammed decisions concern the maintenance of a regular supply of raw materials. d. Unlike nonprogrammed decisions, programmed decisions are made in response to recurring organizational problems.

d. Unlike nonprogrammed decisions, programmed decisions are made in response to recurring organizational problems.

Compensation

refers to all monetary payments and all nonmonetary goods or benefits used to reward employees.

Authority characteristics

1. Authority is vested in organizational positions, not people. Managers have authority because of the positions they hold, and other people in the same positions would have the same authority. 2. Authority flows down the vertical hierarchy. Positions at the top of the hierarchy are vested with more formal authority than are positions at the bottom. 3. Authority is accepted by subordinates. Although authority flows from the top down, subordinates comply because they believe that managers have a legitimate right to issue orders. The acceptance theory of authority argues that a manager has authority only if subordinates choose to accept his or her commands. If subordinates refuse to obey because the order is outside their zone of acceptance, a manager's authority disappears.

Why Do People Resist Change

1. self- interest- People typically resist a change they believe conflicts with their self-interests. A proposed change in job design, structure, or technology may increase employees' workload 2. Lack of understanding and trust- Employees often distrust the intentions behind a change or do not understand the intended purpose of a change. If previous working relationships with a manager or promoter of an idea have been negative, resistance may occur. 3. Uncertainty- Uncertainty is lack of information about future events. It represents a fear of the unknown. It is especially threatening for employees who have a low tolerance for change and fear anything out of the ordinary. They do not know how a change will affect them and worry about whether they will be able to meet the demands of a new procedure or technology. 4. Different Assessments and goals- Another reason for resistance to change is that people who will be affected by a change or innovation may assess the situation differently from managers or promoters of a new idea. Critics frequently voice legitimate disagreements over the proposed benefits of a change. Managers in each department pursue different goals, and an innovation may detract from performance and goal achievement for some departments.

nondirective interview

A conversation where the interviewer asks broad, open-ended questions and permits the applicant to talk freely with minimal interruption, in an attempt to bring to light information, attitudes, and behavioral characteristics that might be concealed when answering structured questions.

corporate university

A corporate university is an in-house training and education facility that offers broad-based learning opportunities for employees—and frequently for customers, suppliers, and strategic partners as well—throughout their careers.

monoculture

A culture that accepts only one way of doing things and one set of values and beliefs is called a monoculture.

diverse and inclusive workforce

A definition that recognizes diversity includes many areas including how people approach work, interact at work and derive satisfaction from work as well as who they are in the workplace.

flat structure

A flat structure is characterized by an overall broad span of management and relatively few hierarchical levels.

job description

A job description is a clear and concise summary of the specific tasks, duties, and responsibilities of a particular position in an organization.

new-venture team

A new-venture team is a unit separate from the rest of the organization that is responsible for developing and initiating a major innovation. New venture teams give free rein to members' creativity because their separate facilities and location unleash people from the restrictions imposed by organizational rules and procedures.

Nonprogrammed decisions

A nonprogrammed decision is one made in response to a situation that is unique, is poorly defined and largely unstructured, and has important consequences for the organization.

permanent teams

A permanent team is a group of employees from all functional areas permanently assigned to focus on a specific task or activity.

problem

A problem occurs when organizational accomplishment is less than established goals.

project manager

A project manager is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.

skunkworks

A skunkworks is one variation of a new-venture team, a separate small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for a business.

after-action review

A technique adopted from the U.S. Army, the after-action review is a disciplined procedure whereby managers review the results of decisions to evaluate what worked, what didn't, and how to do things better.

Satisficing means that decision makers choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist. a. True b. False

A. True

opportunity

An opportunity exists when managers see potential accomplishment that exceeds specified current goals.

Contingent workers

Contingent workers are people who work for an organization, but not on a permanent or full-time basis.

reverse innovation

Creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries.

Disruptive innovation

Disruptive innovation refers to innovations in products, services, or processes that radically change competition in an industry, such as the advent of streaming video or e-books.

Cooperation

Ideas for product and technology innovations typically originate at lower levels of the organization and need to flow horizontally across departments. In addition, people and organizations outside the firm can be rich sources of innovative ideas. Lack of innovation is widely recognized as one of the biggest problems facing today's businesses

Vertical Functional Approach

In a functional structure, also called a U-form (unitary structure), activities are grouped together by common function from the bottom to the top of the organization. Footnote The functional structure groups positions into departments based on similar skills, expertise, work activities, and resource use. A functional structure can be thought of as departmentalization by organizational resources because each type of functional activity—accounting, HR, engineering, and manufacturing—represents specific resources for performing the organization's task. People, facilities, and other resources representing a common function are grouped into a single department.

on-the-job training (OJT)

In on-the-job training (OJT), an experienced employee is asked to take a new employee "under his or her wing" and show the newcomer how to perform job duties.

selection

In the selection process, employers assess applicants' characteristics in an attempt to determine the "fit" between the job and applicant characteristics.

Dividends of Workplace Diversity

Managers who build strong, diverse organizations reap numerous dividends, as described here 1. Better use of employee talent 2. Increased understanding of the marketplace 3.Enhanced breadth of understanding in leadership positions 4.Increased quality of team problem solving 5.Reduced costs associated with high turnover, absenteeism, and lawsuits

Risk

Risk means that a decision has clear-cut goals and good information is available, but the future outcomes associated with each alternative are subject to chance.

Satisficing

Satisficing means that decision makers choose the first solution alternative that satisfies minimal decision criteria. Rather than pursuing all alternatives to identify the single solution that will maximize economic returns, managers will opt for the first solution that appears to solve the problem, even if better solutions are presumed to exist.

Staff authority

Staff authority includes the right to advise, recommend, and counsel in the staff specialists' area of expertise. Staff authority is a communication relationship; staff specialists advise managers in technical areas.

chain of command

The chain of command is an unbroken line of authority that links all employees in an organization and shows who reports to whom.

classical model

The classical model of decision making is based on rational economic assumptions and manager beliefs about what ideal decision making should be.

Technical complexity

The difference among the three manufacturing technologies is called technical complexity. Technical complexity is the degree to which machinery is involved in the production to the exclusion of people.

matrix approach

The matrix approach uses both functional and divisional chains of command simultaneously, in the same part of the organization.

Intangible output

The output of a service firm is intangible. Services are perishable and, unlike physical products, cannot be stored in inventory. The service is either consumed immediately or lost forever. Manufactured products are produced at one point in time and can be stored until sold at another time.

Innovation Roles

The third aspect of product and technology innovation is creating structural mechanisms to make sure that new ideas are carried forward, accepted, and implemented. Managers can directly influence whether entrepreneurship flourishes in the organization by expressing support of entrepreneurial activities, giving employees a degree of autonomy, and rewarding learning and risk-taking.

acqui-hiring

When established companies such as Facebook, Google, Yahoo, LinkedIn, and Salesforce.com buy early-stage start-ups, often shutting them down, simply to acquire their engineering talent.

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

a. It assumes that decisions are the result of bargaining and discussion among coalition members.

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

c. Generate possible alternative solutions to the problem

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

c. The behavioral style

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

c. The classical model defines how managers should make decisions, whereas the administrative model defines how managers actually make decisions.

Conolly Company uses internal recruiting whenever possible. This practice: a. costs more than external recruiting. b. decreases employee satisfaction. c. generates increased employee commitment. d. demotivates existing employees given limited socializing opportunities. e. gives employees an upper hand in negotiations.

c. generates increased employee commitment.

In a food manufacturing company, the decision to reorder raw materials when inventories drop to a certain level is an example of a(n) _____. a. aberrant decision b. nonprogrammed decision c. programmed decision d. unique decision

c. programmed decision

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

devil's advocate

Organizing

refers to the deployment of organizational resources to achieve strategic goals.

Human capital

refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees

Coordination

refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments

A manager with many direct subordinates has a wider (blank) than does a manager with only a few subordinates.

span of management

If you are looking at the organization chart of a (blank) , you see more hierarchical levels and managers with relatively narrow spans of control.

tall structure

decision

A decision is a choice made from available alternatives.

job specification

A job specification outlines the knowledge, skills, education, physical abilities, and other characteristics needed to perform a specific job adequately.

matrix boss

A matrix boss is a functional or product supervisor responsible for one side of the matrix.

360-degree feedback

A recent trend in performance appraisal is called 360-degree feedback, a process that uses multiple raters, including self rating, as a way to increase awareness of strengths and weaknesses and guide employee development.

Ambiguity

Ambiguity means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable.

Bounded rationality

Bounded rationality means that people have limits, or boundaries, on how rational they can be.

Certainty

Certainty means that all the information the decision maker needs is fully available.

Diagnosis

Diagnosis is the step in the decision-making process in which managers analyze underlying causal factors associated with the decision situation.

decision styles

Differences among people with respect to how they perceive problems and make choices.

All the employees in a unit work on citrus drinks, like orange juice and lemonade, so they know a lot about the customers for that product line.

Divisional Structure

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.

Divisional Structure

Direct contact with customers

Employees and customers interact directly to provide and purchase the service. Production and consumption are simultaneous. Service firm employees have direct contact with customers. In a manufacturing firm, technical employees are separated from customers, and hence no direct interactions occur

escalating commitment

Escalating commitment is the tendency for managers and organizations to invest time and money in a solution even when there is strong evidence that it is not appropriate.

Ethnorelativism

Ethnorelativism is the belief that groups and subcultures are inherently equal.

Evidence-based decision making

Evidence-based decision making is founded on a commitment to examining potential biases, seeking and examining evidence with rigor, and making informed and intelligent decisions based on the best available facts and evidence.

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.

Functional Structure

When a decision requires coordination between two or more units, such as between sales and logistics, it needs to go to the top of the organization and decision making can be slow.

Functional Structure

Engage in Rigorous Debate

Good managers recognize that constructive conflict based on divergent points of view can bring a problem into focus, clarify people's ideas, stimulate creative thinking, limit the role of bias, create a broader understanding of issues and alternatives, and improve decision quality

Groupthink

Groupthink refers to the tendency of people in groups to suppress contrary opinions.

Human resource planning

Human resource planning refers to the forecasting of human resource needs and the projected matching of individuals with anticipated job vacancies.

top leader

In a matrix structure, the top leader oversees both the product and the functional chains of command and is responsible for the entire matrix.

Building Human Capital to Drive Performance

In many companies, especially those that rely more on employee information, creativity, knowledge, and service rather than on production machinery, success depends on the ability to manage human capital, as described earlier.

Structured interviews

Interviews that use a set of standardized questions that are asked of every applicant so comparisons can be made easily.

intuition

Intuition represents a quick apprehension of a decision situation based on past experience but without conscious thought. Intuitive decision making is not arbitrary or irrational because it is based on years of practice and hands-on experience.

Avoid Groupthink

It is important for managers to remember that a certain amount of disagreement and conflict is much healthier than blind agreement. Pressures for conformity exist in almost any group, and particularly when people in a group like one another, they tend to avoid anything that might create disharmony

Job analysis

Job analysis is a systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job, as well as about the context within which the job is performed.

Job evaluation

Job evaluation is the process of determining the value of jobs within an organization through an examination of job content.

Use Implementation Tactics

Managers can use specific tactics to overcome resistance and more smoothly put changes into action

realistic job preview (RJP)

Managers use realistic job previews in recruiting to give applicants all pertinent and realistic information, both positive and negative, about a job and the organization.

Create a Sense of Urgency

Many people are not willing to change unless they perceive a problem or a crisis. A crisis or strong need for change lowers resistance. To effectively lead change, managers help people feel the need for change rather than just giving them facts and figures.

stereotyping

One common perceptual error is stereotyping, the tendency to assign an individual to a group or broad category (e.g., female, black, elderly; or male, white, disabled) and then to attribute widely held generalizations about the group to the individual.

open innovation

Open innovation extends the search for and commercialization of innovative ideas beyond the boundaries of the organization.

Organization structure

Organization structure is the framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated.

Pay-for-performance

Pay-for-performance, also called incentive pay, means tying at least a portion of compensation to employee effort and performance.

Performance appraisal

Performance appraisal refers to observing and assessing employee performance, recording the assessment, and providing feedback to the employee.

point-counterpoint

Point-counterpoint is a way to encourage constructive conflict by breaking a decision-making group into two subgroups and assigns them different, often competing, responsibilities.

Prejudice

Prejudice is the tendency to view people who are different as being deficient.

Recruiting

Recruiting is defined as "activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied."

Reengineering

Reengineering refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

Responsibility

Responsibility is the flip side of the authority coin; it refers to the duty to perform the task or activity that one has been assigned.

Rightsizing

Rightsizing refers to reducing the company's workforce intentionally to the point where the number of employees is deemed to be right for the company's current situation

Stereotype threat

Stereotype threat occurs when a person who, when engaged in a task, is aware of a stereotype about his or her identity group suggesting that he or she will not perform well on that task.

Internal Coordination

Successful innovation requires expertise from several departments simultaneously, and failed innovation is often the result of failed cooperation.

Employment tests

Tests given to employees to evaluate their abilities; can include cognitive ability tests, physical ability tests, personality inventories, and other assessments.

Innovative Decision Making

The ability to make fast, widely supported, high-quality decisions on a frequent basis is a critical skill in today's fast-moving organizations

administrative model

The administrative model is descriptive, an approach that describes how managers actually make decisions, rather than how they should make decisions according to a theoretical model.

application form

The application form is a selection device that collects information about the applicant's education, previous work experience, and other background characteristics

The Strategic Approach

The best HR departments not only support strategic objectives, but also actively pursue an ongoing, integrated plan for furthering the organization's performance.

organization chart

The characteristics of vertical structure are portrayed in the organization chart, which is the visual representation of an organization's structure.

divisional structure

The divisional structure groups employees and departments based on similar organizational outputs (products or services), such that each division has a mix of functional skills and tasks.

Innovations in HRM

The field of HRM is constantly changing. Some important HRM issues today are branding the company as an employer of choice, acquiring companies to obtain talent, and addressing the needs of temporary employees and part-time workers.

idea champion

The formal definition of an idea champion is a person who sees the need for and champions productive change within the organization.

halo effect

The halo effect occurs when the perceiver develops an overall impression of a person or situation based on one characteristic, either favorable or unfavorable. In other words, a halo blinds the perceiver to other characteristics that should be used in generating a more complete assessment.

Political Model

The third model of decision making is useful for making nonprogrammed decisions when conditions are uncertain, information is limited, and there are manager conflicts about what goals to pursue or what course of action to take. Most organizational decisions involve many managers who are pursuing different goals, and they have to talk with one another to share information and reach an agreement. Managers often engage in coalition building for making complex organizational decisions.

Team Approach

The vertical chain of command is a powerful means of control, but passing all decisions up the hierarchy takes too long and keeps responsibility at the top. The team approach gives managers a way to delegate authority, push responsibility to lower levels, and be more flexible and responsive in a complex and competitive global environment

Do a Postmortem

To improve decision making, managers need to reflect and learn from every decision they make. When people review the results of their decisions, they learn valuable lessons for how to do things better in the future

Training and Development

Training and development programs represent a planned effort by an organization to facilitate employees' learning of job-related skills and behaviors

Uncertainty

Uncertainty means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete.

matching model

Underlying the organization's effort to attract employees is a matching model. With the matching model, the organization and the individual attempt to match the needs, interests, and values that they offer each other.

wage and salary surveys

Wage and salary surveys show what other organizations pay incumbents in jobs that match a sample of key jobs selected by the organization.

Melissa is a manager at InStylez Clothing. Her job is very complex and she feels that she does not have enough time to identify and/or process all the information she needs to make decisions. Melissa's situation is most consistent with which of the following concepts? a. Bounded rationality b. The classical model of decision making c. Satisficing d. Brainstorming e. Scientific management

a. Bounded rationality

_____ are made in response to situations that have occurred frequently enough to enable managers to develop decision rules that can be applied in the future. a. Programmed decisions b. Aberrant decisions c. Unique decisions d. Nonprogrammed decisions

a. Programmed decisions

Stephanie is nervous about giving a presentation at the marketing firm where she works. One of her male coworkers told her, "Don't be such a girl, attack that presentation!" Now Stephanie is so concerned about appearing tough that she can barely concentrate on the content of the presentation. Stephanie's anxiety stems from: a. stereotype threat. b. ethnocentrism. c. plurality. d. glass ceiling threat. e. the female advantage

a. stereotype threat.

The confusion and frustration caused by the dual chain of command is a major problem of the matrix structure. a. True b. False

a. true

The trend in recent years has been toward narrower spans of control as a way to facilitate delegation. a. True b. False

b. False

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

b. Perpetuating the status quo

Which of the following terms means that decision makers choose the first solution alternative that meets minimal decision criteria? a. Intuition b. Satisficing c. Bounded rationality d. Brainstorming

b. Satisficing

Cyrus's Resort has proposed some major structural changes within its organization. Some of the employees fear that they will lose power with the changes. They begin voicing resistance to the changes. Which of the following barriers to change are they exhibiting? a. Disagreements about benefits b. Self-interest c. Lack of understanding and trust d. Uncertainty e. Different assessments and goals

b. Self-interest

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

b. brainstorming

Toyota Motor Corporation announced a recall of millions of units of its cars because of an accelerator pedal problem that was diagnosed after the company received complaints from several customers. Toyota had never before faced a similar situation, and therefore, the decision to recall the units was a _____. a. routine decision b. nonprogrammed decision c. programmed decision d. standard decision

b. nonprogrammed decision

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

c. Evaluation and feedback

An organization's (blank) conforms to the scalar principle when an unbroken line of authority links all employees in an organization.

chain of command

Which of the following decision styles is often adopted by managers having a deep concern for others as individuals? a. The directive style b. The authoritative style c. The analytical style d. The behavioral style

d. The behavioral style

"The Brain" is a permanent secret group within one of the nation's largest auto manufacturers. Members of this elite group focus intently on developing new and innovative automobile technologies. "The Brain" can best be described as a: a. cross-functional team. b. fast-cycle team. c. brainstorming team. d. skunkwork. e. new-venture team.

d. skunkwork.

Pluralism

describes an environment in which the organization accommodates several subcultures, including employees who would otherwise feel isolated and ignored.

Which of the following is inappropriate to ask on an employment application? a. If the applicant is over 18 b. Where the applicant went to school c. If the applicant has ever been convicted of a crime d. Whether the applicant has any disabilities that might inhibit job performance e. What the applicant's ancestry/ethnicity is

e. What the applicant's ancestry/ethnicity is

The tendency of organizations to invest time and money in a solution despite strong evidence that is not appropriate is referred to as: a. technological decisions. b. collective intuition. c. decision learning. d. team delay. e. escalating commitment.

e. escalating commitment.

All of the following are advantages of a divisional structure, EXCEPT: a. high concern for customers' needs. b. fast response, flexibility in an unstable environment. c. emphasis on overall product and division goals. d. development of general management skills. e. there is little duplication of services across divisions

e. there is little duplication of services across divisions

Ethnocentrism

is the belief that one's own group and culture are inherently superior to other groups and cultures

Job evaluation

is the process of determining the value of jobs within an organization through an examination of job content.

Exploration

is the stage where ideas for new products and technologies are born. Managers design the organization for exploration by establishing conditions that encourage creativity and allow new ideas to spring forth. Creativity refers to the generation of novel ideas that might meet perceived needs or respond to opportunities for the organization.

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

organization chart

Why do managers make bad decisions?

1. Being influenced by initial impressions. When considering decisions, the mind often gives disproportionate weight to the first information that it receives. These initial impressions, statistics, and estimates act as an anchor to our subsequent thoughts and judgments. Anchors can be as simple as a random comment by a colleague or a statistic read in a newspaper. Past events and trends also act as anchors. For example, in business, managers frequently look at the previous year's sales when estimating sales for the coming year. Giving too much weight to the past can lead to poor forecasts and misguided decisions. 2. Justifying past decisions. Many managers fall into the trap of making choices that justify their past decisions, even if those decisions no longer seem valid. One common example is when a manager continues to pour money into a failing project, hoping to turn things around. This is sometimes referred to as the sunk cost effect. Managers often stick with a decision because they've invested a lot of resources in it, even though they'd be better off cutting their losses and moving on.Footnote One study of product development found that managers who initiate a new product are much more likely to continue funding it despite evidence that it is failing.Footnote Behavioral science research by Daniel Kahneman and others shows that people typically respond more strongly to potential loss, referred to as loss aversion, than to expected gain. People hate to lose, so they continue to support a flawed decision in an effort to justify or correct the past. 3. Seeing what you want to see. People frequently look for information that supports their existing instinct or point of view and avoid information that contradicts it. 4. Perpetuating the status quo. Managers may base decisions on what has worked in the past and fail to explore new options, dig for additional information, or investigate new technologies. For example, GM stuck with its strategic decision to offer a multitude of brands long after there was clear evidence that trying to cover the whole range of the auto market was paving the way to disaster. The strategy started to fray in the 1970s with increased competition from Japanese automakers and spikes in oil prices. Yet, as late as February 2008, managers were saying that talk about killing brands was "not a thoughtful discussion." Only bankruptcy and a forced restructuring finally pushed managers to cut GM's brands from eight down to four.Footnote 5. Being influenced by emotions. If you've ever made a decision when you were angry, upset, or even ecstatic, you might already know the danger of being influenced by emotions. A recent study of traders in London investment banks found that effective regulation of emotions was a characteristic of higher-performing traders. Lower-performing traders were less effective in managing and modulating their emotional responses.Footnote Another finding is that doctors make less effective decisions when they feel emotions of like or dislike for a patient. If they like a patient, they are less likely to prescribe a painful procedure. If they feel dislike, they may blame the patient for the condition and provide less treatment.Footnote Unfortunately, some managers let their emotions influence their decisions on a regular basis. There is some evidence that when people make poor decisions under the influence of strong emotions (such as firing off an angry e-mail message), they tend to continue to make poor decisions because it becomes part of the mind's blueprint for how to behave.Footnote Managers make better decisions when—to the extent possible—they take emotions out of the decision-making process. 6. Overconfidence. Most people overestimate their ability to predict uncertain outcomes. The managers at a fast-food chain were sure that low employee turnover was a key driver of customer satisfaction and store profitability, so they decided to invest in programs to keep employees happy. However, when they analyzed store data, they found that some locations with high turnover were highly profitable, while some with low turnover were struggling.Footnote Overconfidence can be particularly dangerous when making risky decisions.

Age discrimination

Age discrimination has made a difficult situation even more trying for older workers looking for jobs in the recent economic downturn.

ambidextrous approach

An ambidextrous approach means incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations.

panel interviews

An interview in which the candidate meets with several interviewers who take turns asking questions.

Authority

Authority is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.

Brainstorming

Brainstorming uses a face-to-face interactive group to spontaneously suggest a wide range of alternatives for decision making.

Centralization

Centralization means that decision authority is located near top organization levels.

implementation

Implementation involves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action.

Know When to Bail

In a fast-paced environment, good managers encourage risk taking and learning from mistakes, but they also aren't hesitant to pull the plug on something that isn't working

Two-boss employees

In a matrix structure, a person who reports to two supervisors simultaneously.

Line authority

Line authority means that people in management positions have formal authority to direct and control immediate subordinates.

new-venture fund

Provides resources from which individuals and groups can draw to develop new ideas, products, or businesses.

Work specialization

Work specialization, sometimes called division of labor, is the degree to which organizational tasks are subdivided into separate jobs.

Programmed decisions

are made in response to recurring organizational problems.

exit interview

is an interview conducted with departing employees to determine reasons for their departure and learn about potential problems in the organization.

During a time of crisis, an organization may become (blank) , placing more decision-making authority near the top of the organization.

more centralized

The trend recently has been for organizations to (blank) structures, in which employees lower in the hierarchy have more decision-making authority.

more decentralized