MG 302 Chapter 5 Extra
Food manufacturers may adapt to changes in markets, technology, or competition with a ----- , like replacing artificial ingredients with natural ingredients to offer customers healthier products.
product change
When you examine the organizational chart of a ------, you find that managers have wide spans of control and fewer layers of reporting relationships between frontline supervisors and senior executives.
flat structure
LEGO is well-known for embracing ------- in its product development. The company partnered with software developers and engineers at MIT to develop their MindStorms product.
open innovation
Typically set by frontline managers, ----- are the precise, measurable outcomes expected from departments, work groups, and individuals.
operational goals
Employees do not trust the company to listen respectfully to their ideas or provide them with growth opportunities.
organizational development
Not satisfied with the status quo, ------- identifies opportunities for change and promotes innovation in the organization, helping to overcome resistance.
an idea champion
The process of ------ , or identifying problems and opportunities and then resolving them, involves effort both before and after choosing a course of action.
decision making
If you work in a complex organization in which you see the political model of decision making at work, which of the following is likely true about your organization?
Managers have different interests and are pursuing different goals
Which of the following would not be a way for Justin to overcome this bias? Evaluate the future costs of adding an addition onto the store and how long it would take, based on current sales, to recoup the costs Hire an outside consultant to evaluate the store's performance and determine the best course of action Submit a proposal to upper management to purchase the competitor's store down the block Consult with other regional managers for their opinions and insights regarding the situation
Submit a proposal to upper management to purchase the competitor's store down the block
Which of the following factors should be classified as a threat to the team?
Teams like the Texas Rangers and Cleveland Indians have a tough time finding players due to the extreme talent already on their teams.
Why have very poor people been underserved by for-profit companies?
These people have found that the products and services offered for sale are unsuited to their needs.
The launch of a team to prepare the newspaper to go 100 percent online is what kind of initiative?
Ambidextrous, because a separate part of the company will be dedicated to innovation while the rest of the company will continue business as usual
Which of the following examples involve an exploration strategy?
Douglas Hart, a professor of mechanical engineering at MIT, was able to develop his concept for a 3-D hearing aid scanner at the Deshpande Center for Technological Innovation. The center serves as an idea incubator to help academics pursue creative endeavors. Stamen Design is a design and technology studio that uses mapping and data visualization tools to present information in fresh and exciting ways. Creativity is a way of life for its designers, and the company is willing to pay what it takes to hire only the most innovative designers on the market.
3 needs of acquired needs theory
achievement, affiliation, power
By selling the five pieces of equipment each man used to perform all five steps, each worker can buy more advanced equipment necessary for his unique task.
benefit
The cost of renting one large blanket-selling stand at the market is less than the combined cost of renting five small stands.
benefit
In 2010, the country announced a $22 billion investment in science and technology innovation.
brazil
Managers who are analyzing how best to compete within a given industry are concerned with ---strategy.
business level
avoidance learning,
called negative reinforcement, when they remove an unpleasant consequence once a behavior is improved.
Needs
creates desire to fulfill ---- (money, friendship, recognition
Need for affiliation
desire to form close personal relationships, avoid conflict, and establish warm friendships
acquired needs theory
developed by David McClelland, proposes that certain types of needs are acquired during the individual's lifetime. In other words, people are not born with these needs but may learn them through their life experiences
two-factor theory.
developed by Frederick Herzberg suggests that the work characteristics associated with dissatisfaction were quite different from those pertaining to satisfaction, which prompted the notion that two factors influence work motivation. Herzberg believed that two entirely separate dimensions contribute to an employee's behavior at work
Employees doing different kinds of work, such as research and development, manufacturing, and sales, tend to communicate with one another more and coordinate their activities.
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
Motivators (Herzberg)
focus on high-level needs and include achievement, recognition, responsibility, and opportunity for growth
Employees in each unit tend to be focused on their work specialty rather than on the customer, so the organization can be slow to respond to changes in the business environment.
functional structure
Employees who do a particular type of work, such as sales or accounting, have more opportunity to develop in-depth expertise.
functional structure
A company that treats its resources, products, and people as transcending national boundaries is a ---- company, and it will hire and transfer people for key positions without regard to nationality
geocentric
By building a presence in Pakistan from the ground up, including bottling factories and warehouses, Coca-Cola is engaged in a -------
greenfield venture
Intrinsic Positive Approach
help people enjoy their work and get a sense of accomplishment -pleasure/growth
A company that offers $1,000 for the best idea an employee submits each quarter is running an internal ------.
innovation contest
People who have a high need for affiliation are successful
integrators (managers)
E → P expectancy
involves determining whether putting effort into a task will lead to high performance
P → O expectancy
involves determining whether successful performance will lead to the desired outcome or reward.
hygiene factor
involves the presence or absence of job dissatisfiers, such as working conditions, pay, company policies, and interpersonal relationships
Reinforcement
is anything that causes a certain behavior to be repeated or inhibited.
As an organization becomes more mechanistic, its communication flow becomes ---- vertical.
more
The trend recently has been for organizations to adopt ----- structures, in which employees lower in the hierarchy have more decision-making authority.
more decentralized
To be considered an MNC, a company based in the United States earns ---- of its total sales revenues from operations outside the United States.
more than 25%
Self-actualization needs
needs include the need for self-fulfillment, which is the highest need category. They concern developing one's full potential, increasing one's competence, and becoming a better person
esteem needs
needs relate to the desire for a positive self-image and to receive attention, recognition, and appreciation from others.
Vicarious learning
occurs when an individual sees others perform certain behaviors and get rewarded for them.
A ----- specifies the way in which an outcome will be achieved and can include the actions to be taken, the resources to be used, and the time frame for accomplishment.
plan
Social learning theory
proposes that an individual's motivation can result not just from direct experience of rewards and punishments, but also from thoughts, beliefs, and observations of other people's behavior.
goal specificity
refers to the degree to which goals are concrete and unambiguous
Motivation
refers to the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action.
behavior modification
refers to the set of techniques by which reinforcement theory is used to modify human behavior
Extinction
refers to withholding positive rewards and essentially ignoring undesirable behavior.
behavior
results in actions to fulfill needs
Feedback
reward informs person whether behavior was appropriate and should be used again
extrinsic positive approach
rewards -raises, bonuses, praise - pleasure/growth
intrinsic rewards
satisfaction a person receives from performing the particular task itself
Rewards
satisfy needs; intrinsic or extrinsic
Needs
such as for recognition, achievement, or monetary gain
Expectancy theory
suggests that motivation depends on individuals' expectations about their ability to perform tasks and receive desired rewards.
intrinsic negative approach
tap into self-doubts -pain/fear
frustration-regression principle
the idea that failure to meet a high-order need may cause a regression to an already satisfied lower-order need; thus, people may move down as well as up the needs hierarchy
Extrinsic Negative Approach
threats and punishments - pain/fear
A high need for power often is associated with successful attainment of top levels in the organizational hierarchy.
true
Employee empowerment and engagement are recent motivational trends that focus less on extrinsic rewards and more on creating a work environment that enables people to achieve intrinsic rewards and meet higher-level needs.
true
Herzberg believed that when motivators are absent, workers are neutral toward work, but when motivators are present, workers are highly motivated and satisfied.
true
In addition to providing appropriate extrinsic rewards, effective managers try to help people achieve intrinsic rewards from their work.
true
People can be driven to act by fear, but good managers avoid the use of fear tactics to motivate people because this approach damages employee commitment and performance in the long run.
true
People who feel inequitably treated may decide to leave their jobs rather than suffer the inequity of being underpaid or overpaid
true
Equity theory
Developed by J. Stacy Adams focuses on individuals' perceptions of how fairly they are treated compared with others.
Which of the following statements is consistent with evidence-based decision making?
Evidence-based decision making suggests that asking "why" repeatedly leads to better decisions. Managers make better decisions when they review their past failures and successes.
As a manager for a company that is looking to expand to India, what should your company focus on? Check all that apply.
Information technology Research and development opportunities
What problem might the CEO expect if the company switches to a matrix structure?
Organizational politics and the number of meetings will increase.
Which of the following factors would lead an ad agency to change in this situation? Check all that apply.
The loss of traditional advertising outlets Customers expecting highly interactive advertising
When the classical model of decision making is said to be normative, this means:
The model defines how people should ideally make decisions
The CEO of Al's Autos is considering moving to a matrix structure. What would be the best reason to make such a move?
To improve communication across functions
The Oriental Trading Company uses a cost leadership strategy. It has a "110% Lowest Price Guarantee," which says that if a customer can provide an advertisement with a lower price from another company, the Oriental Trading Company will refund 110% of the difference in price. The Oriental Trading Company will be more effective if it has a ------ structure.
a mechanistic
change outcomes
a person may change his or her outcomes
Helena discusses how she might arrive at a budget for her website. If she decides to hire a consultant to make the website more mobile-friendly and integrate better across social media platforms, which of the following would be true?
This would be an operational plan.
To solve a problem, a manager might establish and lead a temporary ---- of people from different departments. This group would disband once the problem was solved.
task force
Sometimes when an organization first starts horizontal coordination efforts to promote innovation, ----- is needed to help employees communicate with each other and constructively deal with conflict.
team building
Federated Investors has a -----, with each mutual fund being managed by several portfolio managers who together take responsibility for the fund's performance.
team-based structure
Manufacturing businesses can be classified according to their ------, or how much they use machinery instead of people to produce goods.
technical complexity
When referring to a SWOT analysis, the letter T stands for ---, and it refers to factors that are ---- to the organization.
threats, external
Employees in the accounts payable department have difficulty communicating with people who submit and approve invoices.
training
Identify whether each statement in the following table is true or false. Companies that use a focus strategy have narrow buyer groups.
true
Employees have heard that their company is merging with another company, but management has not made any announcements about how the merger is expected to affect what products the company makes and how it makes them or what the likely effect on the bottom line will be. Employees aren't sure whether the merger will be positive for the firm or not.
uncertainity
During the ----- stage of change, managers might confront employees with clear evidence that the company's current performance is not competitive.
unfreezing
Although a high degree of ------ is efficient, many companies are moving toward having employees perform multiple aspects of the work, such as not only selling a product but also providing follow-up customer service.
work specialization
Identify whether each of Rob's statements is a goal or a plan. One month from today, I will have lost 20 pounds.
goal
goal difficulty
hard goals are more motivating than easy ones. Easy goals provide little challenge for employees and don't require them to increase their output. Highly ambitious but achievable goals ask people to stretch their abilities and provide a basis for greater feelings of accomplishment and personal effectiveness
---- has the second largest population in the world and is a major source of technological and scientific brainpower.
india
This country is becoming a rising power in software design, services, and precision engineering.
india
In the United States, there is widespread ----- , a general belief that people should be able to take care of themselves. This is in contrast to the ----- , or belief that people should look after one another, that is prevalent in Mexico.
individualism, collectivism
Facebook purchased Oculus VR, a startup that makes the Oculus Rift headset used for virtual reality games, in the hopes of bringing that technology to many other customers. The social media giant was engaged in -----.
innovation by aquisition
Engagement
is an emotional and mental state in which employees enjoy their work, contribute enthusiastically to meeting goals, and feel a sense of belonging and commitment to the organization.
Reinforcement
is based on the relationship between a given behavior and its consequences.
making progress principle
is the idea that the single most important factor that can boost motivation, positive emotions, and perceptions during a workday is making progress toward meaningful goals.
Valence
is the value of outcomes (rewards) to the individual.
In thinking about it, Jerzy realizes that he and Leon could create a shoe-manufacturing facility in Spain. Doing so would certainly require a large outlay of money, but Jerzy thinks that with his expertise in shoe design and Leon's expertise in navigating Spanish management and business practices, they could create a partnership that has true synergy.
joint venture
To develop effective lower-level goals, Michelle works with her management team to establish ---- , which measure how well the organization is achieving its strategic goals.
key performance indicators
When a company -----technology to a company in another country, the foreign company can use that technology to make a product similar to the one the first company makes but using its own systems and name.
licenses
Goal acceptance
means that employees have to "buy into" the goals and be committed to them
If Barcelona has a core staff of restaurant managers and head chefs and contracts with staffing agencies to fill all other positions, from accountants to dishwashers, then the company has a ----- structure.
network
In the following table, identify whether each example is a programmed or nonprogrammed decision. You have a budget of $50,000, and you want to remodel your kitchen. Fortunately, you know a number of different contractors, but all of them have different ideas about the best way to remodel a kitchen. Your decision about which contractor to use is a:
nonprogrammed decision
You have recently been promoted, and your decisions will have a greater impact on your organization than before. Even if you try hard to make good decisions, what factors may contribute to poor outcomes? Check all that apply.
-Colleagues may have different opinions about how to solve the problem or even what the problem is. -Conditions change, so the future environment may not be the same as the current one. -Information may be incomplete or contradictory, requiring some guesswork.
An organization that wants to go bossless should consider the following motivation methods:
-don't hide information -rely on intrinsic rewards -let people own the goal -reward the team -hire attitude over aptitude -reinvent management
Maslow identified five general types of motivating needs, listed in order of ascendance:
1. physiological 2. safety 3. belongingness 4. esteem 5. self-acutalization
Carly's friend Brian says that he admires her ability to interact confidently with people in other countries, and he asks for her advice. How could Brian improve his global mindset? Check all that apply.
Attending cultural events, such as with musical groups and guest speakers from other countries, that attract a diverse audience Learning another language and practicing it regularly with native speakers
As a manager, you have been asked to work with your employees to develop goals. What can you expect from this process? Check all that apply. A Planning can harm an organization because it distracts employees from important outcomes. B A benefit of goals is that they help motivate employees. C When deciding whether goals and plans will be beneficial, managers should consider whether the environment is more stable or more dynamic. D The advantages of setting goals and making plans always outweigh the disadvantages for every organization in any environment.
B & C
You are thinking about starting a new organization to design and deliver fashionable touchscreen accessories. But you want your company to be maximally creative. Which of the following organizational principles would help to make your company more innovative? Check all that apply.
Contact with outsiders: employees regularly meet with people who are not part of the organization Decentralization: letting everyone control their own work and having few layers of management Freedom: the ability to choose which problems to work on and how to address them
When using survey feedback activities:
Employees do problem solving based on data
ERG theory identified three categories of needs:
Existence needs. These are the needs for physical well-being. Relatedness needs. These pertain to the need for satisfactory relationships with others. Growth needs. These focus on the development of human potential and the desire for personal growth and increased competence.
Which of the following is an example of a way in which Mi Ola uses core competence to achieve competitive advantage?
Helena Fogarty has many years of experience in different aspects of the fashion industry. An avid surfer, Helena Fogarty is personally aware of what Mi Ola's customers need in a swimsuit.
Carly could best show the interviewer that she possesses the psychological dimension of the global mindset by discussing:
How much she enjoyed improving her conversational German by living with a host family for one semester in college
The CEO of Kwikee Shoppe, a chain of convenience stores, believes that some of his managers aren't making decisions as effectively as they could. He has hired you as a consultant to analyze the types of bias that could be causing poor decisions. If you can identify the biases that may cloud their judgment, then they can be made aware of these tendencies so they can improve their performance. You gather data about Kwikee Shoppe managers' most recent decisions. Justin is in charge of the central region, with several dozen stores reporting to him. Last year, he analyzed sales data for demographically comparable areas and decided that Greenville would be the perfect location for a store. Since the store's opening, it has had 40% less sales than stores of similar size. On the other hand, the convenience store down the block seems to be very popular. Justin believes that if the store were larger, it could stock more merchandise and then more people would shop there. He wants to build an expensive addition onto the store.
Justifying past decisions
physiological needs
These most basic human physical needs include food, water, and oxygen. In the organizational setting, they are reflected in the needs for adequate heat, air, and base salary to ensure survival.
Maslow's hierarchy of needs theory
Probably the most famous content theory was developed and proposes that people are motivated by multiple needs and that these needs exist in a hierarchical order
change perception
Research suggests that people may change perceptions of equity if they are unable to change inputs or outcomes.
When managers engage in a systematic analysis of the organization's internal and external environment, they are engaged in -----.
SWOT analysis
If Talia is hired as a manager at an MNC, what can she can expect? Check all that apply.
She and her colleagues will cultivate a global perspective and view the entire world as one market. Strategy will include finding raw materials and locating production wherever it is most profitable to do so. The corporate structure will integrate the activities of foreign affiliates.
safety needs
These needs include a safe and secure physical and emotional environment and freedom from threats—that is, for freedom from violence and for an orderly society.
If the company uses the horizontal linkage model, how can the software development department expect to do its work? Check all that apply.
Software development employees will have opportunities to tell the research and marketing departments if a new product idea cannot be brought to market in a timely or cost-effective manner. Software development employees will receive customer feedback about whether the products are helpful to students. Instead of getting orders from the top management about what products to make, based on what the research department recommends, software development employees will participate on teams that collect data and make decisions.
The chief advantage of bottom-up approaches and internal innovation contests is that both of these techniques:
Solicit new ideas from existing employees
When Coca-Cola purchased first a part and then all of Honest Tea, what would have been appropriate ways to help this change be successful? Check all that apply.
Survey Honest Tea employees to identify sources of anxiety and conflict related to the acquisition. Use a change agent to freeze Honest Tea's very successful culture before Coca-Cola could have any impact. To the extent that Honest Tea began using Coca-Cola's payroll and expense reimbursement systems, train employees on these systems.
Need for achievement.
The desire to accomplish something difficult, attain a high standard of success, master complex tasks, and surpass others
Need for power
The desire to influence or control others, be responsible for others, and have authority over others
belongingness needs
These needs reflect the desire to be accepted by one's peers, have friendships, be part of a group, and be loved. In the organization, these needs influence the desire for good relationships with coworkers, participation in a work group, and a positive relationship with supervisors.
change work effort
a person may choose to increase or decrease his or her inputs to the organization
ERG theory
a theory that organizes human needs into the categories of existence, relatedness, and growth Clayton Alderfer proposed this modification of Maslow's theory in an effort to simplify it and respond to criticisms of its lack of empirical verification.
A manager is engaged in ----- if he seeks to persuade other managers to support a certain course of action.
coalition building
Jerzy has the idea that one way of expanding would be to purchase Leon's already profitable shoe stores in Spain. Doing so will be costly, but it will give him an outlet for selling his shoes, and he will be able to maintain complete control over how the shoes are marketed. Jerzy believes that the risks he faces in Spain will be low, due to Spain's developed economy and commitment to a modernized infrastructure, but he is concerned about Spain's recent problems with Basque terrorists.
acquisition
The most difficult decision-making situation is ---- , because the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable.
ambiguity
Engaging in innovation requires a looser structure, while implementing new ideas requires a more rigid structure. Organizations can meet both needs by using
an ambidextrous approach
The large-group intervention organizational development model applies to ------.
an entire system
extrinsic rewards
are given by another person, typically a manager, and include promotions, praise, and pay increases. They originate externally, as a result of pleasing others
law of effect
asserts that positively reinforced behavior tends to be repeated, and unreinforced or negatively reinforced behavior tends to be inhibited.
Goal-setting theory
by Edwin Locke and Gary Latham, proposes that managers can increase motivation and enhance performance by setting specific, challenging goals, and then helping people track their progress toward goal achievement by providing timely feedback
An organization's -----conforms to the scalar principle when an unbroken line of authority links all employees in an organization.
chain of command
Countries are classified by their level of ----- on the basis of their per-capita income, or income generated by the nation's production of goods and services divided by total population.
economic development
-------companies emphasize their home country culture. Even as they do business worldwide, they are still identifiably an American, British, German, etc. company, and their home market may take priority. -------companies are oriented toward the cultures and markets of the individual countries in which they do business, so their operations have different characteristics from country to country. ------companies have a truly global orientation and do not prioritize individual national cultures or markets. The number of such companies is growing.
entho, poly, geo
People with a high need for achievement are frequently
entrepreneurs
Process Theories
explain how people select behavioral actions to meet their needs and determine whether their choices were successful
Jerzy knows that he will have to expand his operations if he wants to produce enough shoes for an international market. He has heard that there are shoe dyers in the Ukraine who will work for much lower prices than the dyers in his town charge. Jerzy is considering sending some of his work out to a Ukrainian shoe dying factory as a way to keep his costs down while he determines exactly how much demand exists for his product.
global outstanding
To increase the company's overall capacity to adapt to its environment, ----- would be appropriate.
organizational development
Identify whether each of Rob's statements is a goal or a plan. I can lose weight by eating more fruits and vegetables.
plan
Before any digging takes place on someone's property, it is important that all underground electrical wires, cable wires, water/sewer pipes, and gas mains have been marked. Marking prevents the digger from accidentally encountering these underground hazards. A state has set up a hotline for people to call before they dig. The manager overseeing the hotline knows that if callers are kept on hold for very long, they may hang up and begin excavation without getting their property marked. Therefore, keeping wait times down is important. To achieve this objective by the beginning of the busy summer construction and gardening season, the manager has decided to use management by objectives (MBO). Based on data on how long people wait before hanging up, the manager decides the maximum time on hold should be 90 seconds.
setting a goal
equity theory proposes that people are motivated to seek social equity in the rewards that they receive for performance.
true
good hygiene factors simply remove the dissatisfaction; they do not in themselves cause people to become highly satisfied and motivated in their work.
true
People in Greece tend to value conformity and feel uncomfortable with ambiguity; therefore, the Greek culture has high -----
uncertainty avoidance
For each example, select the decision style that most closely corresponds to it. Kyle prefers to base decisions on lots of data, both objective data from information systems and qualitative data from people.
conceptual
At a company located in California, the management team engages in ------ to develop detailed plans in case of a devastating earthquake.
crisis planning
At MultiMarkets, a chain of retail stores, top management decided to respond to the growing challenge of online retail websites with ----- , using planning experts to help store managers develop their own plans.
decentralized planning
A trend in business today is to ----- authority and responsibility to the lowest level possible in the organization; this frees up time for upper management to focus on strategic issues. Points
delegate
Before any digging takes place on someone's property, it is important that all underground electrical wires, cable wires, water/sewer pipes, and gas mains have been marked. Marking prevents the digger from accidentally encountering these underground hazards. A state has set up a hotline for people to call before they dig. The manager overseeing the hotline knows that if callers are kept on hold for very long, they may hang up and begin excavation without getting their property marked. Therefore, keeping wait times down is important. To achieve this objective by the beginning of the busy summer construction and gardening season, the manager has decided to use management by objectives (MBO). A pool of twelve contingent call center workers who work at home will be hired and trained before April 15. These employees can be activated anytime hold times threaten to exceed 90 seconds.
developing an action plan
All the employees at Agyris Fence, Inc. were sad when Mr. Agyris, the founder of the company, died. The remaining Agyris managers decided that the company needed new ideas, so they hired Mr. Solaris, the CEO of a rival fencing company, to run the firm. Mr. Solaris changed many things, including the firm's target market. Before, Agyris sold mostly residential fencing. Now, Mr. Solaris wants all of the employees to focus on selling fences to businesses and corporations. Employees think that Mr. Solaris is trying to reduce competition for his old company, and they are not happy about the change. The most likely cause of resistance to change in this situation is:
Lack of trust between employees and management
Bob is a manager at Motorola who has lost five of his employees during the last year. Now he has to make a decision about how to retain the employees on his team. Having recently taken a class on decision making, Bob decides to follow the six-step process for deciding what to do. What problem is Bob most likely to face during the evaluation and feedback step in the decision-making process?
Neglecting to gather information on whether or not the plan was successful
Because of the sometimes hostile regulatory environment, cultivating relationships with local officials is important.
china
The World Wide Web turned 25 years old in 2014. Within a generation, the stuff of science fiction has become a part of daily life for hundreds of millions of people worldwide and 87 percent of American adults. According to a Pew Research Center survey, The Web at 25 in the U.S., the vast majority of U.S. users report that the Internet has been a positive force in their lives. At the same time, the Internet poses both opportunities and challenges to nonprofit organizations. On the one hand, it is easier and less expensive than ever to connect with donors and volunteers. On the other hand, it can be difficult to get the attention of an audience that is bombarded by websites, emails, and social media streams. Furthermore, the Pew Research Center's Digital Life in 2025 report, based on a survey of Internet experts from around the world, forecast a number of positive and negative trends. Of particular concern to humanitarian nonprofits is the idea that "dangerous divides between haves and have-nots may expand, resulting in resentment and possible violence." The American Red Cross is a humanitarian organization with global reach that "exists to provide compassionate care to those in need." Leaders of this nonprofit are planning for a world in which disruptive forces such as the Internet, climate change, and the globalization of disease vectors are likely to make its services as vital as in the past, if not more so. At the same time, the organization needs to adapt to a volunteer and donor base that increasingly lives online. One way the Red Cross has leveraged technology is by allowing people to text donations to the organization; this has been especially effective in the wake of headline-grabbing disasters such as the 2010 earthquake in Haiti and Hurricane Sandy, which hit the U.S. East Coast in 2012. As the Board of Governors of the American Red Cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. Another option is to have planning specialists help managers across the organization make their own plans. Why might this organization's executives opt for the latter approach? Check all that apply.
The environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. When managers come up with their own plans, they are likely to be more committed to following through on them.
Dave Nofgren and Betsy Muller-Nofgren run Kozy Korner, a bed-and-breakfast near Big Lake and several other lakes that are popular fishing spots. The mission of Kozy Korner is to be the most comfortable, most convenient place to stay in the Big Lake area. Dave and Betsy feel very fortunate to have been able to make a living doing something they love: meeting interesting guests and living by the lake. There are two tourist seasons in the Big Lake area, one in the summer for open-water fishing and another in the winter for ice fishing. The higher the occupancy rate, the more profitable Kozy Korner is. Empty rooms mean lower profits. For the past several years, Kozy Korner has experienced an average 80 percent occupancy in the summer and 60 percent occupancy in the winter. Dave and Betsy are setting goals and making plans for their business. In some years, weather patterns have caused there to be few fish in local lakes, and anglers have gone elsewhere. Also, invasive carp are threatening the lakes and may someday cause fish stocks to drop indefinitely. How should these facts impact Dave and Betsy's planning?
They should develop a contingency plan in case few anglers book rooms.
Before any digging takes place on someone's property, it is important that all underground electrical wires, cable wires, water/sewer pipes, and gas mains have been marked. Marking prevents the digger from accidentally encountering these underground hazards. A state has set up a hotline for people to call before they dig. The manager overseeing the hotline knows that if callers are kept on hold for very long, they may hang up and begin excavation without getting their property marked. Therefore, keeping wait times down is important. To achieve this objective by the beginning of the busy summer construction and gardening season, the manager has decided to use management by objectives (MBO). On September 30, the manager reports that call center hold times for the summer construction season averaged 42 seconds, with 30 percent of all calls not being put on hold at all but 2 percent of calls exceeding 90 seconds of hold time. The plan is rated mostly successful.
appraising performance
For each example, select the decision style that most closely corresponds to it. When making a decision, Josie likes to talk to people one on one to find out how the decision will affect them.
behavioral
Across different situations, the most effective managers --- decision style.
change their
In the video, Helena mentions that "your plans are always going to change from day to day" because the business environment changes. She should consider ----- to gain more stability in her planning process.
developing contingency plans
A school system is implementing a new series of standardized tests to evaluate how much students are learning. However, many teachers believe that the tests do not measure important content and skills and believe the tests are a waste of the school system's money.
different viewpoint
For each example, select the decision style that most closely corresponds to it. Bill prefers simple, clear-cut solutions to problems.
directive
The machinery that Daesun buys is much more efficient than Cedric's machinery, so Daesun often has downtime while he waits for Cedric to shear more sheep.
drawback
In an effort to justify a prior decision, managers may be prone to ------ , in which they "put good money after bad." It is important to avoid this tendency by being willing to ------ when the evidence shows it is failing.
escalating commitment, to end a project
A company has strong -----if it continuously seeks new ideas from customers and from looks for ways to use new technologies.
external coordination
Managers who use evidence-based decision making rely on --- rather than on -----
facts, rules of thumb
Identify whether each statement in the following table is true or false The ability of employees to create innovative products is critical for companies that adopt a low-cost leadership strategy.
false
Identify whether each statement in the following table is true or false. Businesses that do not adopt a differentiation, low-cost leadership, or focus strategy tend to be more successful than businesses that do adopt these strategies.
false
Managers conduct a --- when they consider the problems and opportunities that drive change and the factors that restrain change.
force field analysis
Identify whether each of Rob's statements is a goal or a plan. Walking might be a good way to lose some weight.
plan
In the following table, identify whether each example is a programmed or nonprogrammed decision. The front office staff at Marriott Hotels has a preshift meeting at 7:00 AM every morning. As general manager, you are expected to attend these meetings. The decision you make every day about what time you will arrive at work is a:
programmed decision
Stephanie orders office supplies every month. She is making a ----because she always bases the order on current inventory levels, which are accurate and up-to-date.
programmed decision
In a ----- effort, Hallmark reimagined and redesigned the way in which it brought new cards to market, cutting the time from three years to less than one year
reengineering
Andy contrasts Barcelona restaurants with other establishments where employees are "told how to answer a phone and how to set a table and how to greet guests and it's all in giant books that they have to memorize." Barcelona's more relaxed work rules could help it achieve:
relational coordination
The CEO of AA Ads just came to you and said, "It's time for us to go digital. What should I do first?" According to force-field analysis, you should tell the CEO to:
restructure the agency
Before any digging takes place on someone's property, it is important that all underground electrical wires, cable wires, water/sewer pipes, and gas mains have been marked. Marking prevents the digger from accidentally encountering these underground hazards. A state has set up a hotline for people to call before they dig. The manager overseeing the hotline knows that if callers are kept on hold for very long, they may hang up and begin excavation without getting their property marked. Therefore, keeping wait times down is important. To achieve this objective by the beginning of the busy summer construction and gardening season, the manager has decided to use management by objectives (MBO). On April 1, the manager sees that nine contingent call center workers have been hired and completed training. On June 30, call center data show 5 percent of calls are on hold for more than 90 seconds.
reviewing process
More and more work has been moved into Katie's job, and she has kept up with the workload. During her last two performance evaluations, her manager said she deserved to be in a higher pay grade because her responsibilities had grown, but her manager never followed through. Now another position has been eliminated, and her manager is giving Katie most of that person's work. Katie has decided to give her new tasks a very low priority.
self interest
