Management, 10e (Robbins)
Chapter 1 Introduction to Management and Organizations
1) Today's managers are just as likely to be women as they are men.
Answer: TRUE
Diff: 2
Page Ref: 4
Topic: Who Are Managers?
Skill: AACSB: Multicultural and Diversity
2) Management affects employee morale but not a company's financial performance.
Answer: FALSE
Diff: 1
Page Ref: 5
Topic: Who Are Managers?
Skill: AACSB: Communication
3) In order to be considered a manager, an individual must coordinate the work of others.
Answer: TRUE
Diff: 2
Page Ref: 5
Topic: Who Are Managers?
4) Supervisors and foremen may both be considered first-line managers.
Answer: TRUE
Diff: 2
Page Ref: 6
Topic: Who Are Managers?
5) Effectiveness refers to the relationship between inputs and outputs.
Answer: FALSE
Diff: 2
Page Ref: 7
Topic: What Is Management?
6) Effectiveness is concerned with the means of getting things done, while efficiency is
concerned with the attainment of organizational goals.
Answer: FALSE
Diff: 2
Page Ref: 7
Topic: What Is Management?
7) A goal of efficiency is to minimize resource costs.
Answer: TRUE
Diff: 2
Page Ref: 7
Topic: What Is Management?
8) Efficiency is described as "doing things right."
Answer: TRUE
Diff: 2 Page Ref: 7
Topic: What Is Management?
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9) Managers who are effective at meeting organizational goals always act efficiently.
Answer: FALSE
Diff: 3
Page Ref: 7
Topic: What Is Management?
10) The four contemporary functions of management are planning, organizing, leading, and
controlling.
Answer: TRUE
Diff: 1
Page Ref: 8
Topic: What Do Managers Do?
11) Determining who reports to whom is part of the controlling function of management.
Answer: FALSE
Diff: 1
Page Ref: 8
Topic: What Do Managers Do?
12) Directing and motivating are part of the controlling function of management.
Answer: FALSE
Diff: 2
Page Ref: 8
Topic: What Do Managers Do?
13) Fayol's management functions are basically equivalent to Mintzberg's management roles.
Answer: FALSE
Diff: 2
Page Ref: 8-9
Topic: What Do Managers Do?
14) The roles of figurehead, leader, and liaison are all interpersonal roles.
Answer: TRUE
Diff: 3
Page Ref: 9
Topic: What Do Managers Do?
15) Disturbance handler is one of Mintzberg's interpersonal roles.
Answer: FALSE
Diff: 3
Page Ref: 9
Topic: What Do Managers Do?
16) Mintzberg's informational management role involves receiving, collecting, and disseminating
information.
Answer: TRUE
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
17) Mintzberg's resource allocation role is similar to Fayol's planning function because it
involves the coordination of employee's activities.
Answer: TRUE
Diff: 3
Page Ref: 8-9
Topic: What Do Managers Do?
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18) Resource allocation and disturbance handling are both considered decisional roles.
Answer: TRUE
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
19) A finance manager who reads the Wall Street Journal on a regular basis would be
performing the figurehead role.
Answer: FALSE
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
20) Katz concluded that managers need three essential skills: technical, human, and conceptual.
Answer: TRUE
Diff: 3
Page Ref: 10-11
Topic: What Do Managers Do?
21) Technical skills become less important as a manager moves into higher levels of
management.
Answer: TRUE
Diff: 2
Page Ref: 10
Topic: What Do Managers Do?
22) Conceptual skills become less important as a manager moves into top management.
Answer: FALSE
Diff: 1 Page Ref: 11
Topic: What Do Managers Do?
23) Human skills is the ability to work well with other people.
Answer: TRUE
Diff: 2
Page Ref: 11
Topic: What Do Managers Do?
24) Coaching and budgeting are skills closely related to the management function of leading.
Answer: FALSE
Diff: 3
Page Ref: 8
Topic: What Do Managers Do?
25) In today's world, organizational managers at all levels and in all areas need to encourage
their employees to be on the look-out for new ideas and new approaches.
Answer: TRUE
Diff: 2
Page Ref: 13
Topic: What Do Managers Do?
26) Only first-line managers and employees need to be concerned with being customerresponsive.
Answer: FALSE
Diff: 2
Page Ref: 13
Topic: What Do Managers Do?
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27) Innovation is only important in high-tech firms.
Answer: FALSE
Diff: 2
Page Ref: 15
Topic: What Do Managers Do?
28) A distinct purpose is important in defining an organization.
Answer: TRUE
Diff: 1
Page Ref: 14
Topic: What Is an Organization?
29) A non-profit organization, such as the United Way, cannot be considered an organization.
Answer: FALSE
Diff: 2
Page Ref: 14
Topic: What Is an Organization?
30) Which of the following statements regarding managers in today's world is accurate?
A) Their age range is limited to between 30 and 65.
B) They are found only in large corporations.
C) They can be found exclusively in for-profit organizations.
D) The single most important variable in employee productivity and loyalty is the quality of the
relationship between employees and their direct supervisors.
Answer: D
Diff: 1
Page Ref: 5
Topic: Who Are Managers?
31) Someone who works with and through other people by coordinating their work activities in
order to accomplish organizational goals is ________.
A) an assembly line worker
B) a laborer
C) a manager
D) a salesperson
Answer: C
Diff: 1
Page Ref: 5
Topic: Who Are Managers?
32) In the past, nonmanagerial employees were viewed as employees who ________.
A) reported to top executives
B) reported to middle managers
C) supervised others
D) had no others reporting to them
Answer: D
Diff: 1
Page Ref: 5
Topic: Who Are Managers?
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33) Which of the following types of managers is responsible for making organization-wide
decisions and establishing the plans and goals that affect the entire organization?
A) first-line managers
B) top managers
C) production managers
D) research managers
Answer: B
Diff: 1
Page Ref: 6
Topic: Who Are Managers?
34) All levels of management between the supervisory level and the top level of the organization
are termed ________.
A) middle managers
B) first-line managers
C) supervisors
D) foremen
Answer: A
Diff: 1
Page Ref: 6
Topic: Who Are Managers?
35) Which of the following levels of management is associated with positions such as executive
vice president, chief operating officer, chief executive officer, and chairman of the board?
A) team leaders
B) middle managers
C) first-line managers
D) top managers
Answer: D
Diff: 1
Page Ref: 7
Topic: Who Are Managers?
36) Agency head or plant manager is most likely associated with which of the following?
A) team leaders
B) middle managers
C) first-line managers
D) top managers
Answer: B
Diff: 2
Page Ref: 6
Topic: Who Are Managers?
37) The lowest level of management is ________.
A) a nonmanagerial employee
B) a department of research manager
C) a vice president
D) a first-line manager
Answer: D
Diff: 1
Page Ref: 5
Topic: Who Are Managers?
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38) Supervisor is another name for which of the following?
A) team leader
B) middle manager
C) first-line manager
D) top manager
Answer: C
Diff: 2
Page Ref: 5
Topic: Who Are Managers?
39) Managers with titles such as regional manager, project leader, or plant manager are
________.
A) first-line managers
B) top managers
C) production managers
D) middle managers
Answer: D
Diff: 2
Page Ref: 6
Topic: Who Are Managers?
40) Which of the following best reflects the management structure of a traditional organization?
A) pyramid
B) circle
C) hub with spokes
D) infinite line
Answer: A
Diff: 1
Page Ref: 6
Topic: Who Are Managers?
41) Division manager is associated with which of the following levels of management?
A) team leaders
B) middle managers
C) first-line managers
D) top managers
Answer: B
Diff: 2 Page Ref: 6
Topic: Who Are Managers?
42) ________ is the process of getting activities completed efficiently and effectively with and
through other people.
A) Leading
B) Management
C) Supervision
D) Controlling
Answer: B
Diff: 1
Page Ref: 6
Topic: What Is Management?
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43) The distinction between a managerial position and a nonmanagerial position is ________.
A) planning the work of others
B) coordinating the work of others
C) controlling the work of others
D) organizing the work of others
Answer: B
Diff: 2
Page Ref: 6
Topic: What Is Management?
44) Which of the following is an example of an efficient manufacturing technique?
A) cutting inventory levels
B) increasing the amount of time to manufacture products
C) increasing product reject rates
D) decreasing product output
Answer: A
Diff: 2
Page Ref: 7
Topic: What Is Management?
45) Wasting resources is considered to be an example of ________.
A) efficiency
B) effectiveness
C) inefficiency
D) ineffectiveness
Answer: C
Diff: 2
Page Ref: 7
Topic: What Is Management?
46) An automobile manufacturer that increased the total number of cars produced at the same
cost, but with many defects, would be ________.
A) efficient and effective
B) increasing efficiency
C) increasing effectiveness
D) concerned with inputs
Answer: B
Diff: 3
Page Ref: 7
Topic: What Is Management?
47) Effectiveness is synonymous with ________.
A) cost minimization
B) resource control
C) goal attainment
D) efficiency
Answer: C
Diff: 3
Page Ref: 7
Topic: What Is Management?
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48) Efficiency refers to ________.
A) the relationship between inputs and outputs
B) the additive relationship between costs and benefits
C) the exponential nature of costs and outputs
D) increasing outputs regardless of cost
Answer: A
Diff: 2
Page Ref: 7
Topic: What Is Management?
49) In successful organizations, ________.
A) low efficiency and high effectiveness go hand in hand
B) high efficiency and low effectiveness go hand in hand
C) high efficiency and high effectiveness go hand in hand
D) high efficiency and high equity go hand in hand
Answer: C
Diff: 2
Page Ref: 7
Topic: What Is Management?
50) Whereas ________ is concerned with the means of getting things done, ________ is
concerned with the ends, or attainment of organizational goals.
A) effectiveness; efficiency
B) efficiency; effectiveness
C) effectiveness; goal attainment
D) goal attainment; efficiency
Answer: B
Diff: 3
Page Ref: 7
Topic: What Is Management?
51) How many management functions were originally proposed in the early part of the twentieth
century?
A) three
B) four
C) five
D) nine
Answer: C
Diff: 3
Page Ref: 8
Topic: What Do Managers Do?
52) ________ was a French industrialist who first identified the basic management functions.
A) Weber
B) Taylor
C) Herzberg
D) Fayol
Answer: D
Diff: 2
Page Ref: 8
Topic: What Do Managers Do?
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53) Today, the basic management functions are considered to be ________.
A) planning, coordinating, staffing, and directing
B) planning, organizing, leading, and directing
C) commanding, organizing, leading, and staffing
D) planning, organizing, leading, and controlling
Answer: D
Diff: 2
Page Ref: 8
Topic: What Do Managers Do?
54) Which of the following management functions from the mid-1950s is no longer included in
the basic functions of management?
A) planning
B) staffing
C) leading
D) controlling
Answer: B
Diff: 2
Page Ref: 8
Topic: What Do Managers Do?
55) Writing an organizational strategic plan is an example of the ________ management
function.
A) leading
B) coordinating
C) planning
D) organizing
Answer: C
Diff: 3
Page Ref: 8
Topic: What Do Managers Do?
Skill: AACSB: Communication
56) Organizing includes ________.
A) defining organizational goals
B) hiring organizational members
C) motivating organizational members
D) determining who does what tasks
Answer: D
Diff: 3
Page Ref: 8
Topic: What Do Managers Do?
57) A manager resolving conflict among organizational members is performing what function?
A) controlling
B) commanding
C) directing
D) leading
Answer: D
Diff: 2
Page Ref: 8
Topic: What Do Managers Do?
Skill: AACSB: Communication
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58) The process of monitoring, comparing, and correcting is called ________.
A) controlling
B) coordinating
C) leading
D) organizing
Answer: A
Diff: 2
Page Ref: 8
Topic: What Do Managers Do?
A Leadership Junkie Part II (Scenario)
Carrie is a leadership "junkie." She has read all of the latest popular management texts on
leadership and strongly feels that it has improved her ability to manage and perform her job. She
is always eager to share her knowledge with her peers, especially emerging issues in leadership
and the differences between the ways men and women lead.
59) ________ developed a categorization scheme for defining what managers do, consisting of
10 different but highly interrelated roles.
A) Henri Fayol
B) Henry Ford
C) Henry Mintzberg
D) Henry Morris
Answer: C
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
60) According to Mintzberg's management roles, the ________ roles are those that involve
people and other duties that are ceremonial and symbolic in nature.
A) informational
B) interpersonal
C) technical
D) decisional
Answer: B
Diff: 1
Page Ref: 9
Topic: What Do Managers Do?
61) The roles of disseminator, figurehead, negotiator, liaison, and spokesperson are more
important at the ________ levels of the organization.
A) lower
B) middle
C) higher
D) supervisory
Answer: C
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
Skill: AACSB: Communication
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62) Which of the following is not an example of a decisional role according to Mintzberg?
A) spokesperson
B) entrepreneur
C) disturbance handler
D) resource allocator
Answer: A
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
Skill: AACSB: Communication
63) A human resource manager attending a local Society for Human Resource Management
meeting would be functioning in which role?
A) informational
B) leader
C) liaison
D) disseminator
Answer: C
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
Skill: AACSB: Communication
64) A finance manager who reads the Wall Street Journal on a regular basis would be
performing which role?
A) figurehead
B) monitor
C) disseminator
D) interpersonal
Answer: B
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
65) The ________ role is more important for lower-level managers than it is for either middle- or
top-level managers.
A) leader
B) entrepreneur
C) spokesperson
D) disseminator
Answer: A
Diff: 3
Page Ref: 10
Topic: What Do Managers Do?
66) The emphasis that managers give to various roles seems to be based on their ________.
A) organizational level
B) tenure with the organization
C) experience in their field
D) personality
Answer: A
Diff: 1
Page Ref: 10
Topic: What Do Managers Do?
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67) Which of the following is not an example of an interpersonal role according to Mintzberg?
A) figurehead
B) leader
C) liaison
D) spokesperson
Answer: D
Diff: 3
Page Ref: 9
Topic: What Do Managers Do?
Skill: AACSB: Communication
68) According to Mintzberg's management roles, the ________ roles involve receiving,
collecting, and disseminating information.
A) interpersonal
B) informational
C) technical
D) decisional
Answer: B
Diff: 3
Page Ref: 9
Topic: What Do Managers Do?
69) All of the following are examples of informational roles according to Mintzberg except
________.
A) liaison
B) monitor
C) disseminator
D) spokesperson
Answer: A
Diff: 3
Page Ref: 9
Topic: What Do Managers Do?
Skill: AACSB: Communication
70) Which of the following is not an example of a decisional role according to Mintzberg?
A) spokesperson
B) entrepreneur
C) disturbance handler
D) resource allocator
Answer: A
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
Skill: AACSB: Communication
12
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
71) All of the following are managerial roles that are more important at the higher levels of the
organization except ________.
A) leader
B) disseminator
C) figurehead
D) negotiator
Answer: A
Diff: 3
Page Ref: 10
Topic: What Do Managers Do?
72) Which of the following represents the most useful way of describing the manager's job?
A) roles
B) functions
C) skills
D) organizational level
Answer: B
Diff: 2
Page Ref: 10
Topic: What Do Managers Do?
73) Many of Mintzberg's roles align with the basic functions of management. For example, the
________ role is a part of planning.
A) figurehead
B) leader
C) liaison
D) resource allocation
Answer: D
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
74) All three of Mintzberg's interpersonal roles are part of the ________ function.
A) organizing
B) planning
C) leading
D) controlling
Answer: C
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
Skill: AACSB: Communication
75) Which of the following individuals identified the three essential managerial skills?
A) Katz
B) Lewisberg
C) Raines
D) Chambers
Answer: A
Diff: 1
Page Ref: 10
Topic: What Do Managers Do?
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76) The three essential managerial skills include ________.
A) technical, human, and empirical
B) human, empirical, and conceptual
C) technical, interpersonal, and controlling
D) technical, human, and conceptual
Answer: D
Diff: 2
Page Ref: 10
Topic: What Do Managers Do?
77) Understanding building codes would be considered a ________ skill for a building
contractor.
A) human
B) technical
C) conceptual
D) empirical
Answer: B
Diff: 1
Page Ref: 10
Topic: What Do Managers Do?
78) Which of the following is true concerning technical and managerial skills?
A) Human skills and technical skills remain equally important as managers move to higher
levels.
B) Technical-skill needs remain necessary and human skills decrease as managers move to
higher levels.
C) Human skills remain necessary and technical-skill needs decrease as managers move to
higher levels.
D) Both human-skill and technical-skill needs decrease as managers move to higher levels.
Answer: C
Diff: 3
Page Ref: 10
Topic: What Do Managers Do?
79) Managers with good ________ are able to communicate, motivate and lead to get the best
out of their people.
A) human skills
B) conceptual skills
C) technical skills
D) visual skills
Answer: A
Diff: 1
Page Ref: 11
Topic: What Do Managers Do?
80) Technical skills include ________.
A) leadership and efficiency in a certain specialized field
B) knowledge of and proficiency in a certain specialized field
C) familiarity with and interest in a general field of endeavor
D) skill and interest in a general field of endeavor
Answer: B
Diff: 3
Page Ref: 10
Topic: What Do Managers Do?
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81) The ability to work well with other people, both individually and in a group, describes which
of the following skills ________.
A) technical skills
B) assessment skills
C) planning skills
D) human skills
Answer: D
Diff: 2
Page Ref: 11
Topic: What Do Managers Do?
Skill: AACSB: Communication
82) Which of the following types of skills are described with terms such as abstract situations
and visualization?
A) interpersonal
B) human
C) technical
D) conceptual
Answer: D
Diff: 2
Page Ref: 11
Topic: What Do Managers Do?
83) Which one of the following phrases is best associated with managerial conceptual skills?
A) decision making
B) communicating with customers
C) using information to solve business problems
D) product knowledge
Answer: C
Diff: 2
Page Ref: 11
Topic: What Do Managers Do?
Skill: AACSB: Communication
84) Which of the following skills are more important at lower levels of management, as these
managers are dealing directly with employees doing the organization's work?
A) human
B) technical
C) conceptual
D) empirical
Answer: B
Diff: 1
Page Ref: 10
Topic: What Do Managers Do?
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85) Budgeting is associated with the management functions of planning and ________.
A) directing
B) organizing
C) leading
D) controlling
Answer: D
Diff: 1
Page Ref: 8
Topic: What Do Managers Do?
86) Mentoring is primarily associated with the management function of ________.
A) planning
B) organizing
C) leading
D) controlling
Answer: C
Diff: 1
Page Ref: 8
Topic: What Do Managers Do?
87) An organization is ________.
A) the physical location where people work
B) a collection of individuals working for the same company
C) a deliberate arrangement of people to accomplish some specific purpose
D) a group of individuals focused on profit making for their shareholders
Answer: C
Diff: 2
Page Ref: 14
Topic: What Is an Organization?
88) One of the common characteristics of all organizations is ________, which is typically
expressed in terms of the organization's goals.
A) its people
B) its goals
C) its systematic structure
D) its purpose
Answer: D
Diff: 2
Page Ref: 14
Topic: What Is an Organization?
89) One of the common characteristics of all organizations is ________, which clarifies
members' work relationships.
A) its people
B) its goals
C) its deliberate structure
D) its purpose
Answer: C
Diff: 2
Page Ref: 14
Topic: What Is an Organization?
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90) A deliberate arrangement of people to accomplish some specific purpose is ________.
A) a structure
B) a process
C) an organization
D) an assembly operation
Answer: C
Diff: 3
Page Ref: 14
Topic: What Is an Organization?
91) A difference between traditional organizations and new organizations is that the new
organizations tend to be more ________.
A) stable
B) command oriented
C) rule oriented
D) dynamic
Answer: D
Diff: 2
Page Ref: 14
Topic: What Is an Organization?
92) Which of the following best describes the concept that management is needed in all types
and sizes of organizations, no matter the country in which they're located?
A) the partiality of management
B) the segmentation of management
C) the universality of management
D) the cultures of management
Answer: C
Diff: 2
Page Ref: 14
Topic: Why Study Management?
93) Universality of management means that ________.
A) all managers in all organizations perform the four management functions
B) all managers in all organizations can perform their job the same way
C) all organizations can hire any manager to perform the management jobs
D) any manager can work in any organization and perform any management job
Answer: A
Diff: 3
Page Ref: 15
Topic: Why Study Management?
94) Organizations that are well managed ________.
A) choose the best suppliers for their products
B) compete on an international basis because they have the best products
C) always have the lowest-cost products
D) develop a loyal customer base, grow, and prosper
Answer: D
Diff: 2
Page Ref: 15
Topic: Why Study Management?
17
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95) Which of the following types of managerial positions is most likely to involve clerical
duties?
A) shift supervisor
B) regional department head
C) project manager
D) chief executive officer
Answer: A
Diff: 2
Page Ref: 16
Topic: Why Study Management?
96) A manager's success is typically ________.
A) dependent on how hard the manager works
B) how closely the manager supervises the employees
C) based on how skilled the manager is at the technical elements of the job
D) dependent on others' work performance
Answer: D
Diff: 1
Page Ref: 16
Topic: Why Study Management?
97) A primary responsibility of managers is creating a work environment that ________.
A) is safe and well lit
B) is clean and organized
C) allows employees to do their work to the best of their ability
D) provides excellent customer service
Answer: C
Diff: 2
Page Ref: 16
Topic: Why Study Management?
98) Which of the following represents a challenge of management?
A) enjoy relatively easy work
B) work with a variety of people
C) have little influence on organizational outcomes
D) have to deal with a variety of personalities
Answer: D
Diff: 2 Page Ref: 16
Topic: Why Study Management?
99) Each of the following represents a challenge of management except ________.
A) must operate with limited resources
B) are highly valued by organizations
C) must motivate workers in uncertain situations
D) success depends on others' performance
Answer: B
Diff: 2
Page Ref: 16
Topic: Why Study Management?
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Managerial Basic Training (Scenario)
Imagine that your marketing company has just merged with a manufacturing organization. You
have been asked to help provide some "basic" managerial training to the engineers in the
research and development unit of the new sister company. To make sure you are covering the
necessary issues, your boss has asked to see an overview of materials that you will be providing
the engineers.
100) Now that both companies are merged and are a systematic arrangement of people set to
accomplish a specific purpose, they could be described as a(n) ________.
A) business unit
B) multinational company
C) organization
D) holding company
Answer: C
Diff: 1
Page Ref: 14
Topic: What Is an Organization?
101) One of the first things the engineers need to learn is that ________ are the people who
direct the activities of others in an organization.
A) directors
B) managers
C) subordinates
D) line workers
Answer: B
Diff: 2
Page Ref: 5
Topic: Who Are Managers?
102) Another fact that engineers need to learn is that supervisors may frequently be referred to as
________.
A) middle managers
B) top managers
C) project leaders
D) first-line managers
Answer: D
Diff: 2
Page Ref: 5
Topic: Who Are Managers?
103) Many of the engineers in the group are unclear about what managers actually do. Your
training materials explain that a manager's job focuses on ________.
A) the performance of clerical duties
B) personal achievement
C) helping others accomplish their work goals
D) supervising groups rather than individual employees
Answer: C
Diff: 2
Page Ref: 5
Topic: Who Are Managers?
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The Customer Meeting (Scenario)
Kelly, a production supervisor, is responsible for 10 employees who assemble components into a
finished product that is sold to distributors. Kelly reports to Ben, a production manager, who in
turn reports to Dan, a general manager, who reports to McKenna, a vice president of operations.
Recently, McKenna asked Dan to have a meeting with Kelly and Ben regarding some customer
concerns in the production area. The focus of the meeting was to judge the validity of the
customer concerns, and to develop a specific plan to address these concerns.
104) What is the commonality among Kelly, Ben, Dan, and McKenna?
A) They all produce the same product.
B) They all have the same job content.
C) They all are managers.
D) They all have the same vision.
Answer: C
Diff: 2
Page Ref: 5-6
Topic: Who Are Managers?
105) Kelly is considered to be what level of management?
A) top manager
B) superintendent of assembly
C) middle manager
D) first-line manager
Answer: D
Diff: 1
Page Ref: 5
Topic: Who Are Managers?
106) Ben and Dan are considered to be what level of management?
A) top managers
B) middle managers
C) superintendents of assembly
D) first-line managers
Answer: B
Diff: 2
Page Ref: 6
Topic: Who Are Managers?
107) Which of the following is not an example of a decisional role according to Mintzberg?
A) spokesperson
B) entrepreneur
C) disturbance handler
D) resource allocator
Answer: A
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
108) Which of the following is not an example of an interpersonal role according to Mintzberg?
A) figurehead
B) leader
C) liaison
D) spokesperson
Answer: D
Diff: 3
Page Ref: 9
Topic: What Do Managers Do?
109) According to Mintzberg's management roles, the ________ roles involve receiving,
collecting, and disseminating information.
A) interpersonal
B) informational
C) technical
D) decisional
Answer: B
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
110) All of the following are examples of informational roles according to Mintzberg except
________.
A) liaison
B) monitor
C) disseminator
D) spokesperson
Answer: A
Diff: 3
Page Ref: 9
Topic: What Do Managers Do?
111) Which of the following is not an example of a decisional role according to Mintzberg?
A) spokesperson
B) entrepreneur
C) disturbance handler
D) resource allocator
Answer: A
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
112) All of the following are managerial roles that are more important at the higher levels of the
organization except ________.
A) leader
B) disseminator
C) figurehead
D) negotiator
Answer: A
Diff: 3
Page Ref: 10
Topic: What Do Managers Do?
21
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
113) The roles of disseminator, figurehead, negotiator, liaison, and spokesperson are more
important at the ________ levels of the organization.
A) lower
B) middle
C) higher
D) supervisory
Answer: C
Diff: 2
Page Ref: 10
Topic: What Do Managers Do?
114) The organizing process is more important ________.
A) for top-level managers than it is for first-level managers only
B) for top-level managers than it is for either middle- or first-level managers
C) than leading at all levels of management
D) than any of the other management processes
Answer: B
Diff: 3
Page Ref: 8
Topic: What Do Managers Do?
115) Which of the following best describes the concept that management is needed in all types
and sizes of organizations, no matter the country in which they're located?
A) the partiality of management
B) the segmentation of management
C) the universality of management
D) the cultures of management
Answer: C
Diff: 2
Page Ref: 14
Topic: Why Study Management?
116) Universality of management means that ________
A) all managers in all organizations perform the four management functions
B) all managers in all organizations can perform their job the same way
C) all organizations can hire any manager to perform the management jobs
D) any manager can work in any organization and perform any management job
Answer: A
Diff: 3
Page Ref: 14
Topic: Why Study Management?
117) Almost all managerial tasks involve ________.
A) decision making
B) organization skills
C) interpersonal skills
D) handling information
Answer: A
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
22
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
118) Understanding building codes would be considered a(n) ________ skill for a building
contractor.
A) interpersonal
B) technical
C) conceptual
D) political
Answer: B
Diff: 1
Page Ref: 10
Topic: What Do Managers Do?
119) Technical skills include ________.
A) leadership and efficiency in a certain specialized field
B) knowledge of and proficiency in a certain specialized field
C) familiarity with and interest in a general field of endeavor
D) skill and interest in a general field of endeavor
Answer: B
Diff: 2
Page Ref: 10
Topic: What Do Managers Do?
120) Which of the following types of skills is described with the terms analyze and diagnose?
A) interpersonal
B) political
C) technical
D) conceptual
Answer: D
Diff: 2
Page Ref: 11
Topic: What Do Managers Do?
The Customer Meeting (Scenario)
Kelly, a production supervisor, is responsible for 10 employees who assemble components into a
finished product that is sold to distributors. Kelly reports to Ben, a production manager, who in
turn reports to Dan, a general manager, who reports to McKenna, a vice president of operations.
Recently, McKenna asked Dan to have a meeting with Kelly and Ben regarding some customer
concerns in the production area. The focus of the meeting was to judge the validity of the
customer concerns, and to develop a specific plan to address these concerns.
121) McKenna is considered to be what level of management?
A) top manager
B) superintendent of assembly
C) middle manager
D) first-line manager
Answer: A
Diff: 2
Page Ref: 6
Topic: Who Are Managers?
23
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
122) The structure of the managerial relationships among McKenna, Dan, Ben, and Kelly can
best be described as a ________.
A) flexible work group
B) traditional pyramid structure
C) innovative nuclear structure
D) communication hub
Answer: B
Diff: 1
Page Ref: 6
Topic: Who Are Managers?
The Perfect Manager (Scenario)
Brenda Kraft has proven herself to be an able manager. Her section has a high project
completion rate with the highest-quality product and the lowest defects in her division. In
addition, she accomplishes this with fewer full-time people than other managers. Some say that
the secret of her success is in her ability to delegate responsibility and her understanding of the
basic "management functions."
123) Brenda's ability to complete activities efficiently and effectively with and through other
people is known as ________.
A) management
B) leadership
C) coercion
D) delegation
Answer: A
Diff: 1
Page Ref: 6
Topic: What Is Management?
124) Brenda's ability to produce the same amount of product with fewer personnel is a reflection
of her ________.
A) effectiveness
B) process skills
C) leadership
D) efficiency
Answer: D
Diff: 2
Page Ref: 7
Topic: What Is Management?
125) The fact that Brenda completes her projects is an indication of her ________ as a manager.
A) leadership
B) effectiveness
C) efficiency
D) attention to detail
Answer: B
Diff: 2
Page Ref: 7
Topic: What Is Management?
24
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
126) If Brenda accomplished her projects on time with high-quality results, but she took more
time than other managers in the process, you could say that as a manager she was ________.
A) efficient, but not effective
B) a leader, but not a top manager
C) project oriented, but not effective
D) effective, but not efficient
Answer: D
Diff: 2
Page Ref: 7
Topic: What Is Management?
127) The "management functions" exemplified by Brenda include all but which of the following?
A) planning
B) controlling
C) organizing
D) calibrating
Answer: D
Diff: 2
Page Ref: 8
Topic: What Do Managers Do?
Joe the Manager (Scenario)
As a production supervisor, Joe decides on Friday afternoon how many units of output his
employees will be able to produce and on which days certain products will be run in his
department. He also decides which of his employees are going to be responsible for operating
which machines within the department next week, as his employees are multi-skilled assemblers.
On Monday, he informs his employees of their assignments to specific machines by handing out
assignment sheets. He tells the employees that the schedule is going to be difficult this week due
to the increased number of units. He goes on to tell them that he is sure they can fulfill the
schedule because they are such good and skilled employees. Each day during the week, Joe
checks the amount of output that the employees have completed and the number of units that
have been rejected.
128) When Joe decides how many units of output his employees will be able to produce and on
which days certain products will be run, he is performing which of the management functions?
A) controlling
B) leading
C) planning
D) organizing
Answer: C
Diff: 2
Page Ref: 8
Topic: What Do Managers Do?
25
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
129) When Joe checks the amount of output that the employees have completed and the number
of units that have been rejected, he is performing which of the management functions?
A) controlling
B) leading
C) planning
D) organizing
Answer: A
Diff: 2
Page Ref: 8
Topic: What Do Managers Do?
130) When Joe tells the employees that he is sure they can fulfill the schedule because they are
such good and skilled employees, he is performing which of the management functions?
A) controlling
B) leading
C) planning
D) organizing
Answer: B
Diff: 2
Page Ref: 8
Topic: What Is Management?
Skill: AACSB: Communication
The Busy Day (Scenario)
Don Eskew, plant manager at Control Systems, Inc., sighed as he sipped his first cup of coffee at
5 A.M. and read his agenda for the day. He is giving two company tours in the morning: the first
to a newspaper reporter who is writing a story on the new plant expansion, and the second to a
group of Control Systems managers from the east coast. Don then has a meeting with the unit
manager, Phil Johnson, to discuss Phil's recent drop in performance (a task Don always hates).
Next, Don is spending a couple of hours reviewing the trade journals he receives from his hightech association and writing up a brief synopsis for his presentation next week to the division
president. Finally, in the late afternoon, he will be reviewing the new equipment malfunction and
deciding whether to bring in extra people to get the equipment running as soon as possible.
Whew! Just another day in the glamorous life of a manager.
131) Together, all of the functions that Don performs during his busy day correspond to the
management roles discovered in the late 1960s by which one of the following management
researchers?
A) Herzberg
B) Skinner
C) Mintzberg
D) Fayol
Answer: C
Diff: 1
Page Ref: 8-9
Topic: What Do Managers Do?
26
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
132) When Don conducts the tour for the east coast managers, he will be operating in which of
the management roles?
A) leader
B) liaison
C) monitor
D) figurehead
Answer: D
Diff: 3
Page Ref: 9
Topic: What Do Managers Do?
133) When Don meets with Phil to discuss Phil's performance issues, Don will be operating in
which management role?
A) leader
B) figurehead
C) monitor
D) disturbance handler
Answer: A
Diff: 3
Page Ref: 8
Topic: What Do Managers Do?
134) What role will Don be performing when he gives the plant tour to the newspaper reporter?
A) monitor
B) figurehead
C) disseminator
D) spokesperson
Answer: D
Diff: 3
Page Ref: 9
Topic: What Do Managers Do?
Skill: AACSB: Communication
135) When Don reviews the new equipment malfunction, what management role will he play
when deciding whether to bring in extra people?
A) monitor
B) disseminator
C) resource allocator
D) disturbance handler
Answer: C
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
27
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
The General Manager (Scenario)
Michael is the general manager of a production facility. In a routine day, Michael might meet
with city officials or civic leaders about environmental issues due to the plants presence in the
community. After these meetings, he will then meet with the plants functional managers to
discuss the concerns expressed by the city representatives. Other times, Michael might meet with
the production manager, Betty, and the human resource manager, Joyce, to discuss a complaint
filed by one of the employees in a production department. Michael might also spend time on the
Internet looking for new technologies that can be used in the production processes of his plant.
136) When Michael gains information from city officials or civic leaders to learn how the plant's
operations may be affecting the environment, he is performing which management role?
A) leader
B) resource allocator
C) entrepreneur
D) monitor
Answer: D
Diff: 3
Page Ref: 9
Topic: What Do Managers Do?
137) When Michael meets with Betty and Joyce to discuss a complaint filed by one of the
employees in a production department, he is performing which management role?
A) resource allocator
B) disturbance handler
C) liaison
D) figurehead
Answer: B
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
138) When Michael meets with the functional managers to share with them the results of the
meeting with city officials or civic leaders, he is performing which management role?
A) disseminator
B) liaison
C) disturbance handler
D) negotiator
Answer: A
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
Skill: AACSB: Communication
28
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
139) When Michael spends time on the Internet looking for new technologies that can be used in
the production processes of his plant, he is performing which management role?
A) leader
B) entrepreneur
C) spokesperson
D) disturbance handler
Answer: B
Diff: 3
Page Ref: 9
Topic: What Do Managers Do?
Skill: AACSB: Technology
140) Michael's search for new technologies that can be used in the production processes of his
plant is an example of which type of management role?
A) interpersonal
B) informational
C) decisional
D) controlling
Answer: B
Diff: 2
Page Ref: 9
Topic: What Do Managers Do?
Skill: AACSB: Technology
141) Michael's search for new technologies that can be used in the production processes of his
plant is an example of which type of management skill?
A) conceptual
B) communication
C) effectiveness
D) interpersonal
Answer: A
Diff: 2
Page Ref: 11
Topic: What Do Managers Do?
Skill: AACSB: Technology
142) In a short essay, explain how the definition of a manager has changed over time. Provide an
example that illustrates the current definition.
Answer: Managers used to be defined as the organizational members who told others what to do
and how to do it. In the past, it was easy to differentiate managers from nonmanagerial
employees. Nonmanagers were organizational members who worked directly on a job or task and
had no one reporting to them. Managers were those who supervised other employees.
Today, the changing nature of organizations and work has blurred the distinction between
managers and nonmanagerial employees. Many traditional nonmanagerial jobs now include
managerial activities. For example, managerial responsibilities are shared by managers and team
members at General Cable Corporation's facility in Moose Jaw, Saskatchewan, Canada. Most of
the employees at Moose Jaw are cross-trained and multi-skilled. Within a single shift, an
employee can be a team leader, equipment operator, maintenance technician, quality inspector,
or improvement planner.
Diff: 1
Page Ref: 5, 11-12
Topic: Who Are Managers?; What Do Managers Do?
29
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
143) In a short essay, describe the similarities and differences between managerial and
nonmanagerial positions in today's work environment.
Answer: a. Similarities In today's work force, both managers and nonmanagers may at times
have responsibility for certain managerial activities. In addition, like nonmanagerial employees,
managers may carry out some duties that do not involve supervising others.
b. Differences A nonmanager's job tends to be focused on personal achievement. By contrast,
a manager's job is not about personal achievement but rather helping others to do their work. In
addition, nonmanagers focus primarily on accomplishing specific tasks. Managers may have
their own tasks to accomplish, but they also focus on coordinating the work of others.
Diff: 1
Page Ref: 5
Topic: Who Are Managers?
144) In a short essay, describe and provide examples of first-line, middle, and top managers.
Answer: a. First-line managers are the lowest level of management and manage the work of
nonmanagerial individuals who are directly involved with the production or creation of the
organization's products. First-line managers are often called supervisors, but may also be called
line managers, office managers, or even foremen.
b. Middle managers include all levels of management between the first-line level and the top
level of the organization. These managers manage the work of first-line managers and may have
titles such as department head, project leader, plant manager, or division manager.
c. Top managers are responsible for making organization-wide decisions and establishing the
plans and goals that affect the entire organization. These individuals typically have titles such as
executive vice president, president, managing director, chief operating officer, chief executive
officer, or chairman of the board.
Diff: 1
Page Ref: 5-6
Topic: Who Are Managers?
145) In a short essay, discuss the difference between efficiency and effectiveness and include a
specific example to support each concept.
Answer: a. Efficiency refers to getting the most output from the least amount of inputs.
Because managers deal with scarce inputs including resources such as people, money, and
equipment they are concerned with the efficient use of resources. For instance, at the HON
Company plant in Cedartown, Georgia, where employees make and assemble steel and wooden
office furniture, efficient manufacturing techniques were implemented by doing things such as
cutting inventory levels, decreasing the amount of time to manufacture products, and lowering
product reject rates. From this perspective, efficiency is often referred to as "doing things
right" that is, not wasting resources.
b. Effectiveness is often described as "doing the right things"–that is, those work activities that
will help the organization reach its goals. For instance, at the HON factory, goals included
meeting customers' increasingly stringent needs, executing world-class manufacturing strategies,
and making employee jobs easier and safer. Through various work methods and programs, these
goals were pursued and achieved. Whereas efficiency is concerned with the means of getting
things done, effectiveness is concerned with the ends, or attainment of organizational goals.
Diff: 2
Page Ref: 7
Topic: What Is Management?
30
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
146) In a short essay, list and explain the four basic functions of management.
Answer: a. Planning involves the process of defining goals, establishing strategies for
achieving those goals, and developing plans to integrate and coordinate activities.
b. Organizing involves the process of determining what tasks are to be done, who is to do
them, how the tasks are to be grouped, who reports to whom, and where decisions are to be
made.
c. Leading when managers motivate subordinates, influence individuals or teams as they
work, select the most effective communication channel, or deal in any way with employee
behavior issues, they are leading.
d. Controlling to ensure that work is proceeding as it should, managers must monitor and
evaluate performance. The process of monitoring, comparing, and correcting is what is meant by
the controlling function.
Diff: 2
Page Ref: 8
Topic: What Do Managers Do?
31
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
147) In a short essay, list and discuss 7 of the 10 managerial roles developed by Mintzberg.
Include specific examples of each role and group each according to interpersonal, informational,
and decisional roles.
Answer:
Interpersonal Roles
a. Figurehead symbolic head; obliged to perform a number of routine duties of a legal or
social nature. Examples include greeting visitors and signing legal documents.
b. Leader responsible for the motivation and activation of subordinates; responsible for
staffing, training, and associated duties. Examples include performing virtually all activities that
involve subordinates.
c. Liaison maintains self-developed network of outside contacts and informers who provide
favors and information. Examples include acknowledging mail, doing external board work, and
performing other activities that involve outsiders.
Informational Roles
a. Monitor seeks and receives wide variety of internal and external information to develop
thorough understanding of organization and environment. Examples include reading periodicals
and reports, and maintaining personal contacts.
b. Disseminator transmits information received from outsiders or from subordinates to
members of the organization. Examples include holding informational meetings and making
phone calls to relay information.
c. Spokesperson transmits information to outsiders on organization's plans, policies, actions,
results, and so on. Examples include holding board meetings and giving information to the
media.
Decisional Roles
a. Entrepreneur searches organization and its environment for opportunities and initiates
"improvement projects" to bring about changes. Examples include organizing strategy and
review sessions to develop new programs.
b. Disturbance handler responsible for corrective action when organization faces important,
unexpected disturbances. Examples include organizing strategy and review sessions that involve
disturbances and crises.
c. Resource allocator responsible for the allocation of organizational resources of all
kinds making or approving all significant organizational decisions. Examples include
scheduling, requesting authorization; performing any activity that involves budgeting and the
programming of subordinates' work.
d. Negotiator responsible for representing the organization at major negotiations. Examples
include participating in union contract negotiations.
The interpersonal roles are roles that involve people and other duties that are ceremonial and
symbolic in nature. The three interpersonal roles include being a figurehead, leader, and liaison.
The informational roles involve receiving, collecting, and disseminating information. The three
informational roles include a monitor, disseminator, and spokesperson. Finally, the decisional
roles revolve around making choices. The four decisional roles include entrepreneur, disturbance
handler, resource allocator, and negotiator.
Diff: 3
Page Ref: 8-9
32
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Topic: What Do Managers Do?
Skill: AACSB: Communication
148) In a short essay, discuss which approach is more useful for describing the job of a
manager functions or roles? Describe the contributions of both approaches.
Answer: Fayol's functions approach represents the most useful way of describing the manager's
job. This is because Fayol's functions provide "clear and discrete methods" of classifying
management activities and techniques. Though less effective than the functions approach,
Mintzberg's roles approach does offer important insights into managers' work. Many of his roles
align well with one or more of the functions. For instance, resource allocation is part of planning,
as is the entrepreneurial role, and all three of the interpersonal roles are part of the leading
function.
Diff: 2
Page Ref: 10
Topic: What Do Managers Do?
149) In a short essay, describe the three main types of managerial skills identified by Robert
Katz. Which skills are most important to each level of management, and why?
Answer: a. Research by Robert L. Katz concluded that managers needed three essential skills.
These are technical skills, human skills, and conceptual skills. Technical skills are the jobspecific knowledge and techniques needed to perform specific tasks proficiently. Human skills
involve the ability to work well with other people both individually and in a group. Conceptual
skills are the skills managers use to think and to conceptualize about abstract and complex
situations.
b. Technical skills tend to be more important for lower-level managers. This is because lowerlevel managers typically manage employees who use tools and techniques to produce the
organization's products and services. Human skills are equally important at all levels of
management, because all managers must deal directly with people. Conceptual skills are most
important at top levels of management. Managers at top levels must use conceptual skills to see
the organization as a whole, to understand the relationships among various subunits, and to
visualize how the organization fits into its broader environment.
Diff: 2
Page Ref: 10-11
Topic: What Do Managers Do?
33
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
150) In a short essay, discuss the importance of studying management. Next, list at least five
rewards and five challenges of being a manager.
Answer: By studying management, you'll be able to recognize poor management and work to
correct it. In addition, you'll be able to recognize good management and encourage it, whether
it's in an organization you're simply interacting with or whether it's in an organization where
you're employed. Another reason for studying management is the reality that for most students,
once they graduate from college and begin their careers, they will either manage or be managed.
A final reason to study management is the rewards and challenges of being a manager.
Rewards of Being a Manager
a. most important work of an organization is creating a work environment in which
organizational members can work to the best of their ability
b. have opportunities to think creatively and use imagination
c. help others find meaning and fulfillment in work
d. get to support, coach, and nurture others
e. get to work with a variety of people
f. receive recognition and status in organization and community
g. play a role in influencing organizational outcomes
h. receive appropriate compensation in the form of salaries, bonuses, and stock options
i. good managers are needed by organizations
Challenges of Being a Manager
a. it's hard work
b. have to deal with a variety of personalities
c. often have to make do with limited resources
d. motivate workers in chaotic and uncertain situations
e. be able to successfully blend knowledge, skills, ambitions, and experiences of a diverse work
group
Diff: 2
Page Ref: 14-16
Topic: Why Study Management?
34
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 3 Organizational Culture and Environment
1) In the symbolic view of management, managers are seen as directly responsible for an
organization's success or failure.
Answer: FALSE
Diff: 1
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
2) The current dominant assumption in management theory suggests that managers are
omnipotent.
Answer: TRUE
Diff: 2
Page Ref: 44
Topic: The Manager: Omnipotent or Symbolic?
3) The view of managers as omnipotent is consistent with the stereotypical picture of the takecharge business executive who can overcome any obstacle in carrying out the organization's
objectives.
Answer: TRUE
Diff: 2
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
4) The symbolic view of management impact is useful in explaining the high turnover among
college and professional sports coaches, who can be considered the "managers" of their teams.
Answer: FALSE
Diff: 3
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
5) In the omnipotent view of management, much of an organization's success or failure is due to
forces outside management's control.
Answer: FALSE
Diff: 1
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
6) In the symbolic view of management, it is unreasonable to expect managers to have a
significant effect on the organization's performance.
Answer: TRUE
Diff: 1
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
7) In the omnipotent view of management, a manager's role is to create meaning out of
randomness, confusion, and ambiguity.
Answer: FALSE
Diff: 2
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
8) An organizational culture refers to a system of shared meaning.
Answer: TRUE
Diff: 2
Page Ref: 46
Topic: Organizational Culture
9) Organizational cultures influence how employees behave in an organization.
Answer: TRUE
Diff: 2
Page Ref: 46
Topic: Organizational Culture
10) Organizational culture is a perception, not reality.
Answer: TRUE
Diff: 2
Page Ref: 46
Topic: Organizational Culture
11) Presently, there is no method for analyzing or assessing organizational culture.
Answer: FALSE
Diff: 2
Page Ref: 46
Topic: Organizational Culture
12) Strong cultures have more influence on employees than do weak cultures.
Answer: TRUE
Diff: 2
Page Ref: 47
Topic: Organizational Culture
13) An increasing body of evidence suggests that strong cultures are associated with high
organizational performance.
Answer: TRUE
Diff: 1
Page Ref: 47
Topic: Organizational Culture
14) Most organizations have very weak cultures.
Answer: FALSE
Diff: 2
Page Ref: 48
Topic: Organizational Culture
15) An organization's founder has little influence on its culture.
Answer: FALSE
Diff: 2
Page Ref: 49
Topic: Organizational Culture
16) Rituals are repetitive sequences of activities that express and reinforce the key values of an
organization.
Answer: TRUE
Diff: 2
Page Ref: 50
Topic: Organizational Culture
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
17) Organizational stories typically contain a narrative regarding significant events or people.
Answer: TRUE
Diff: 2
Page Ref: 49
Topic: Organizational Culture
18) Employee stock options are one example of a material symbol that might represent
organizational culture.
Answer: FALSE
Diff: 2
Page Ref: 50
Topic: Organizational Culture
19) The link between values and managerial behavior is fairly straightforward.
Answer: TRUE
Diff: 2
Page Ref: 51
Topic: Organizational Culture
20) A strong ethical culture is likely to have a powerful positive influence on employee behavior.
Answer: TRUE
Diff: 1
Page Ref: 53
Topic: Organizational Culture
Skill: AACSB: Ethics
21) Low risk tolerance generally leads to high ethical standards within an organization.
Answer: FALSE
Diff: 2
Page Ref: 53
Topic: Organizational Culture
Skill: AACSB: Ethics
22) Companies that allow their employees freedom tend to encourage innovative cultures.
Answer: TRUE
Diff: 2
Page Ref: 54
Topic: Organizational Culture
23) To encourage a customer-responsive culture, organizations should formalize and enforce
strict customer service policies.
Answer: FALSE
Diff: 2
Page Ref: 55
Topic: Organizational Culture
24) Customer service employees tend to provide better customer service when they are very clear
about their employee roles.
Answer: TRUE
Diff: 2
Page Ref: 55
Topic: Organizational Culture
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
25) To increase customer responsiveness, organizations should hire employees who are outgoing
and friendly.
Answer: TRUE
Diff: 2
Page Ref: 55
Topic: Organizational Culture
26) The part of the environment directly related to achievement of an organization's goals is the
specific environment.
Answer: TRUE
Diff: 2
Page Ref: 58
Topic: The Environment
27) The general environment refers to environmental factors operating inside an organization.
Answer: FALSE
Diff: 1
Page Ref: 58
Topic: The Environment
28) Environmental uncertainty can be divided into two dimensions: degree of trust and degree of
integration.
Answer: FALSE
Diff: 2
Page Ref: 61
Topic: The Environment
29) Because certainty is a threat to an organization's effectiveness, managers try to minimize it.
Answer: FALSE
Diff: 1
Page Ref: 62
Topic: The Environment
30) The term suppliers includes providers of financial and labor inputs.
Answer: TRUE
Diff: 2
Page Ref: 58
Topic: The Environment
31) Economic conditions are part of the organization's specific environment.
Answer: FALSE
Diff: 2
Page Ref: 58
Topic: The Environment
32) Which of the following represent the two views of managerial impact on the success or
failure of the organization?
A) omnipotent and symbolic
B) omnipotent and reflective
C) symbolic and interactive
D) reflective and interactive
Answer: A
Diff: 1 Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
33) The omnipotent view of management states that ________.
A) the top manager is the only person in charge
B) managers are directly responsible for an organization's success or failure
C) that there is only one boss in the organization, and she or he is responsible for delegating
orders
D) managers have little or no responsibility for an organization's success or failure
Answer: B
Diff: 1
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
34) The ________ view of management is consistent with the stereotypical picture of the takecharge business executive who can overcome any obstacle in carrying out the organization's
objectives.
A) omnipotent
B) symbolic
C) functional
D) systems
Answer: A
Diff: 1
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
35) Which of the following most accurately reflects the symbolic view of management?
A) Managers are directly responsible for an organization's success or failure.
B) Managers have little or no responsibility for an organization's success or failure.
C) External forces are directly responsible for an organization's success or failure.
D) Employees are directly responsible for an organization's success or failure.
Answer: C
Diff: 1
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
36) Internal constraints that restrict a manager's decision options ________.
A) exist within every organization
B) do not exist, as all managers have decision-making discretion
C) exist only to the extent that upper management imposes them
D) exist only to the extent that followers won't do as they are told
Answer: A
Diff: 3
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
37) The current dominant assumption in management theory suggests ________.
A) a balanced view of managers as symbolic and omnipotent
B) an emphasis on the view that managers are symbolic
C) an emphasis on the view that managers are omnipotent
D) that both the symbolic and omnipotent views are obsolete
Answer: C
Diff: 2
Page Ref: 44
Topic: The Manager: Omnipotent or Symbolic?
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
38) According to the symbolic view, managers have a(n) ________ effect on substantive
organizational outcomes.
A) neutral
B) controlling
C) limited
D) unlimited
Answer: C
Diff: 2
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
39) The symbolic view of management is based upon the belief that managers symbolize
________.
A) control and influence
B) ambiguity and confusion
C) stakeholders' interests
D) decisions of top management
Answer: A
Diff: 2
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
40) In reality, managers are most accurately viewed as ________.
A) dominant over an organization's environment
B) neither helpless nor all powerful
C) powerless to influence an organization's performance
D) ultimately responsible for organizational outcomes
Answer: B
Diff: 2
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
41) The culture of an organization is analogous to the ________ of an individual.
A) skills
B) personality
C) motivation
D) ability
Answer: B
Diff: 1
Page Ref: 46
Topic: Organizational Culture
42) All organizational cultures consist of each of the following except ________.
A) shared values
B) principles
C) innovation
D) traditions
Answer: C
Diff: 3
Page Ref: 46
Topic: Organizational Culture
6
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
43) Strong cultures ________.
A) are found in organizations with high employee turnover
B) have a minimal influence on employee decision making
C) can be found in all organizations that exist
D) have a greater influence on employees than do weak cultures
Answer: D
Diff: 2
Page Ref: 46
Topic: Organizational Culture
44) Employees in organizations with strong cultures ________.
A) are more committed to their organizations
B) are more likely to leave their organizations
C) are more willing to perform illegal activities
D) are more likely to follow directives from peers
Answer: A
Diff: 2
Page Ref: 48
Topic: Organizational Culture
45) Which of the following phrases is associated with the definition of organizational culture?
A) individual response
B) shared meaning
C) diversity of thought
D) explicit directions
Answer: B
Diff: 1
Page Ref: 46
Topic: Organizational Culture
46) Which of the following is not considered to be a dimension of organizational culture?
A) attention to detail
B) people orientation
C) purchasing policies
D) aggressiveness
Answer: C
Diff: 2
Page Ref: 46
Topic: Organizational Culture
47) Which of the following dimensions of organizational culture is defined as the degree to
which an organization's actions and decisions emphasize maintaining the status quo?
A) stability
B) outcome orientation
C) team orientation
D) innovation and risk taking
Answer: A
Diff: 2
Page Ref: 47
Topic: Organizational Culture
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48) A company whose managers focus on results, rather than how results are achieved, most
likely possesses a high degree of which of the following?
A) outcome orientation
B) people orientation
C) team orientation
D) aggressiveness
Answer: A
Diff: 2
Page Ref: 47
Topic: Organizational Culture
49) Sony Corporation's focus on product innovation is an example of which of the following
dimensions of organizational culture?
A) attention to detail
B) people orientation
C) outcome orientation
D) aggressiveness
Answer: C
Diff: 2
Page Ref: 46
Topic: Organizational Culture
50) Which of the following most accurately reflects the difference between strong cultures and
weak cultures?
A) Strong cultures tend to encourage employee innovation, while weak cultures do not.
B) Weak cultures are found in most organizations, whereas strong cultures are relatively rare.
C) Strong cultures have less of an influence on employee behavior than do weak cultures.
D) Company values are more deeply held and widely shared in strong cultures than in weak
cultures.
Answer: D
Diff: 2
Page Ref: 46
Topic: Organizational Culture
51) Corporate ________ are repetitive sequences of activities that express and reinforce the
values of an organization.
A) languages
B) rituals
C) symbols
D) ceremonies
Answer: B
Diff: 1
Page Ref: 50
Topic: Organizational Culture
8
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
52) Which of the following represents the most significant ways through which corporate
cultures are transmitted to employees?
A) rituals, myths, competitions, and language
B) symbols, rituals, language, and business systems
C) stories, rituals, symbols, and language
D) language, stories, rituals, and rewards
Answer: C
Diff: 2
Page Ref: 50
Topic: Organizational Culture
53) When employees at Microsoft use terms such as work judo, eating your own dog food, and
flat food, they are using organizational ________.
A) languages
B) rituals
C) symbols
D) ceremonies
Answer: A
Diff: 1
Page Ref: 50
Topic: Organizational Culture
54) Most organizations have ________ cultures.
A) very weak
B) weak to moderate
C) moderate
D) moderate to strong
Answer: D
Diff: 2
Page Ref: 48
Topic: Organizational Culture
55) The original source of an organization's culture usually ________.
A) is shared among the first workers hired into the organization
B) is formulated by the board of directors when the organization is formed
C) identifies what the organization is successful doing
D) reflects the vision or mission of the organization's founder
Answer: D
Diff: 2
Page Ref: 48
Topic: Organizational Culture
56) Organizational ________ typically contain narratives about significant events or people in
the organization.
A) stories
B) rituals
C) charts
D) material symbols
Answer: A
Diff: 2
Page Ref: 50
Topic: Organizational Culture
9
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57) All of the following are mentioned in the textbook as examples of material symbols except
________.
A) employee dress attire
B) size of employee offices
C) availability of stock options
D) reserved parking spaces for certain employees
Answer: C
Diff: 2
Page Ref: 50
Topic: Organizational Culture
58) The link between organizational values and managerial behavior is ________.
A) usually uncertain
B) fairly straightforward
C) often highly complex
D) relatively dynamic
Answer: B
Diff: 2
Page Ref: 51
Topic: Why Do Managers Plan?
59) In learning an organization's specific language, members are displaying their ________.
A) willingness to communicate with the organization's stockholders
B) confidence that they will soon be promoted to greater responsibility
C) willingness to help preserve the culture of the organization
D) consent to share material symbols with the other members of the organization
Answer: C
Diff: 3
Page Ref: 50
Topic: Organizational Culture
60) An organization's culture affects managers by ________.
A) providing them with additional decision-making power
B) restricting them from disciplining certain employees
C) encouraging them to bend or even break company rules
D) establishing what is appropriate and expected behavior
Answer: D
Diff: 2
Page Ref: 51
Topic: Organizational Culture
61) A company that primarily values a strong sense of purpose through meaningful work has
a(n) ________ organizational culture.
A) spiritual
B) customer-responsive
C) ethical
D) innovative
Answer: A
Diff: 2
Page Ref: 55-56
Topic: Current Organizational Culture Issues
Skill: AACSB: Ethics
10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
62) Which of the following is most likely to have a highly ethical organizational culture?
A) a highly aggressive, competitive business
B) a company with high risk tolerance
C) a business that focuses strictly on outcomes
D) a business with outgoing and friendly employees
Answer: B
Diff: 2
Page Ref: 53
Topic: Current Organizational Culture Issues
Skill: AACSB: Ethics
63) To encourage ethical cultures, managers should ________.
A) enforce strict discipline policies
B) encourage employees to compete
C) act in their own self-interest
D) serve as visible role models
Answer: D
Diff: 2
Page Ref: 53
Topic: Current Organizational Culture Issues
Skill: AACSB: Ethics
64) Conscientious employees with good listening skills are highly valuable for building a(n)
________ organizational culture.
A) ethical
B) innovative
C) customer-responsive
D) spiritual
Answer: C
Diff: 2
Page Ref: 55
Topic: Current Organizational Culture Issues
65) An innovative organizational culture is characterized by all of the following characteristics
except ________.
A) freedom
B) conformity
C) debates
D) risk taking
Answer: B
Diff: 2
Page Ref: 53
Topic: Current Organizational Culture Issues
66) Workplace spirituality has become important in the contemporary workplace because it helps
to ________.
A) reduce unemployment rates
B) boost company profits
C) restore a sense of community
D) bring religion into business
Answer: C
Diff: 2
Page Ref: 55
Topic: Current Organizational Culture Issues
11
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
67) Which of the following is most characteristic of an organization with a strong spiritual
culture?
A) Employees are encouraged to express themselves.
B) Such companies experience high employee turnover.
C) Employees are rewarded for innovation and risk taking.
D) Employees are required to join organized religions.
Answer: A
Diff: 2
Page Ref: 55
Topic: Current Organizational Culture Issues
68) Which of the following best characterizes the relationship between spirituality and business
profitability?
A) Evidence shows that spirituality and business profitability are incompatible.
B) Limited evidence suggests that spirituality may be compatible with profitability.
C) Research shows that workplace spirituality constrains employee performance.
D) High productivity has been extensively documented in spiritual workplaces.
Answer: B
Diff: 3
Page Ref: 56
Topic: Current Organizational Culture Issues
69) External environment refers to ________.
A) forces outside the organization that limit the organization's performance
B) factors and forces outside the organization that affect the organization's performance
C) forces and institutions inside the organization that affect the organization's performance
D) forces inside the organization that increase the organization's performance
Answer: B
Diff: 3
Page Ref: 57
Topic: The Environment
70) According to the textbook, the ________ environment includes those forces that have a
direct and immediate impact on managers' decisions and actions and are directly relevant to the
achievement of the organization's goals.
A) general
B) specific
C) secondary
D) forward
Answer: B
Diff: 2
Page Ref: 58
Topic: The Environment
71) An organization's specific environment ________.
A) is unique and changes with conditions
B) is the same regardless of the organization's age
C) is determined by the top level of management
D) must be quantified to establish its existence
Answer: A
Diff: 2
Page Ref: 58
Topic: The Environment
12
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
72) The main forces that make up an organization's specific environment are ________.
A) suppliers, legislators, customers, and employees
B) customers, suppliers, competitors, and pressure groups
C) employees, competitors, pressure groups, and regulators
D) suppliers, employees, competitors, and legislators
Answer: B
Diff: 2
Page Ref: 58
Topic: The Environment
73) Organizations exist to meet the needs of which of the following constituencies?
A) customers
B) legislators
C) suppliers
D) competitors
Answer: A
Diff: 2
Page Ref: 58
Topic: The Environment
74) When you think of an organization's suppliers, you ________.
A) know that they are the main customers of the organization
B) typically think of governments that pass the laws the organization must follow
C) know that they are located close to the organization itself
D) typically think in terms of organizations that provide materials and equipment
Answer: D
Diff: 2
Page Ref: 58
Topic: The Environment
75) Each of the following is considered an organizational supplier except providers of ________.
A) financial inputs
B) labor inputs
C) materials
D) political pressure
Answer: D
Diff: 2 Page Ref: 58
Topic: The Environment
76) The Internet is having an impact on determining whom an organization's competitors are
because it has ________.
A) defined the common markets for organizations
B) made certain products invaluable to customers
C) virtually eliminated the need for shopping malls
D) virtually eliminated geographic boundaries
Answer: D
Diff: 3
Page Ref: 60
Topic: The Environment
13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
77) For a company such as Walt Disney World in Florida, a bank would be an example of what
kind of factor in a specific environment?
A) competitor
B) supplier
C) special-interest group
D) government agency
Answer: B
Diff: 2
Page Ref: 58
Topic: The Environment
78) Which of the following is not an example of a specific environmental factor?
A) population demographics
B) political conditions
C) federal laws
D) all of the above
Answer: D
Diff: 2
Page Ref: 58
Topic: The Environment
79) For organizations such as hospitals, which hire nurses, the labor union and the local labor
market are examples of which of the following specific environmental factors?
A) competitor and supplier
B) customer and pressure group
C) both are examples of suppliers
D) both are examples of pressure groups
Answer: C
Diff: 3
Page Ref: 58
Topic: The Environment
80) Typically, the specific organizational environment includes which of the following?
A) economic factors
B) political conditions
C) technological factors
D) competitors
Answer: D
Diff: 1
Page Ref: 58
Topic: The Environment
81) UPS represents which of the following to the U.S. Postal Service?
A) competitor
B) supplier
C) customer
D) government agency
Answer: A
Diff: 2
Page Ref: 58
Topic: The Environment
14
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
82) The general environment factor of economic conditions consists of all of the following
except ________.
A) legislation recently passed by Congress
B) interest rates
C) changes in disposable income
D) stock market fluctuations
Answer: A
Diff: 2
Page Ref: 58
Topic: The Environment
83) Sociocultural conditions consist of ________.
A) demographic profiles of an organization's suppliers
B) legal issues as determined by court decisions
C) the level of unemployment and real economic incomes of workers
D) changing expectations and values within society
Answer: D
Diff: 3
Page Ref: 60
Topic: The Environment
84) To a national broadcast network such as NBC, your home DVD player is considered a
________.
A) customer
B) supplier
C) special-interest group
D) competitor
Answer: D
Diff: 2
Page Ref: 58
Topic: The Environment
85) Groups such as Mothers Against Drunk Driving (MADD) are examples of what factor in the
specific external environment?
A) competitors
B) pressure groups
C) customers
D) government agencies
Answer: B
Diff: 2
Page Ref: 58
Topic: The Environment
86) Typically, the general organizational environment includes which of the following?
A) political conditions
B) business plans
C) stakeholders
D) suppliers
Answer: A
Diff: 2
Page Ref: 58
Topic: The Environment
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
87) Compared to the specific environment, which of the following is an accurate statement about
the general environment of an organization?
A) It has less impact on the organization's operations.
B) It has more impact on the organization's operations.
C) It has about the same impact on an organization's operations.
D) It is predominantly the concern of upper management.
Answer: A
Diff: 3
Page Ref: 58
Topic: The Environment
88) Which of the following is not a component of an organization's general environment?
A) economic conditions
B) political conditions
C) social conditions
D) industry conditions
Answer: D
Diff: 2
Page Ref: 58
Topic: The Environment
89) Interest rates, inflation rates, and stock market fluctuations are all examples of what factor in
an organization's general environment?
A) economic
B) political
C) social
D) technological
Answer: A
Diff: 2
Page Ref: 58
Topic: The Environment
90) The Americans with Disabilities Act of 1990 is an example of a ________.
A) sociolegal condition
B) political/legal condition
C) political/sociological condition
D) sociocultural condition
Answer: B
Diff: 2
Page Ref: 58
Topic: The Environment
91) A decrease in contributions from the public to the United Way charity is most likely the
result of which of the following general environmental factors?
A) political
B) social
C) technological
D) economic
Answer: D
Diff: 2
Page Ref: 58
Topic: The Environment
16
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
92) Which of the following groups includes individuals who were born between the years 19461964?
A) the Depression group
B) the World War II group
C) the baby boomers
D) Generation X
Answer: C
Diff: 1
Page Ref: 60
Topic: The Environment
93) The members of which of the following groups are behaving in fundamentally different ways
that are likely to greatly impact organizations and managers?
A) the Depression group
B) the World War II group
C) the baby boomers
D) Generation Y
Answer: D
Diff: 2
Page Ref: 60
Topic: The Environment
94) Automation represents an example of a(n) ________ general environmental factor.
A) technological
B) demographic
C) political/legal
D) economic
Answer: A
Diff: 2
Page Ref: 60
Topic: The Environment
Skill: AACSB: Technology
95) Which of the following has been the most rapidly changing component in an organization's
general environment?
A) global
B) economic
C) social
D) technological
Answer: D
Diff: 2
Page Ref: 60
Topic: The Environment
Skill: AACSB: Technology
17
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
96) Which of the following best represents a global general environmental factor?
A) increased surveillance
B) education levels
C) electronic meetings
D) international markets
Answer: D
Diff: 2
Page Ref: 60
Topic: The Environment
Skill: AACSB: Globalizations
97) Which of the following are the two dimensions of environmental uncertainty?
A) degree of change and degree of complexity
B) degree of change and degree of volume
C) degree of complexity and degree of impact
D) degree of impact and degree of timing
Answer: A
Diff: 2
Page Ref: 61
Topic: The Environment
98) If the components of an organization's environment change frequently, the organization is
operating in a ________ environment.
A) disruptive
B) diverse
C) dynamic
D) difficult
Answer: C
Diff: 3
Page Ref: 61
Topic: The Environment
99) Managers try to minimize ________ because it threatens organizational effectiveness.
A) product development
B) uncertainty
C) price charges
D) the number of suppliers
Answer: B
Diff: 2
Page Ref: 61
Topic: The Environment
100) ________ are any constituencies in an organization's external environment that are affected
by the organization's decisions and actions.
A) Stockholders
B) Pressure groups
C) Suppliers
D) Stakeholders
Answer: D
Diff: 2
Page Ref: 62
Topic: The Environment
18
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
101) Degree of ________ refers to the number of components in an organization's environment
and the extent of the knowledge that the organization has about those components.
A) stability
B) openness
C) complexity
D) transition
Answer: C
Diff: 2
Page Ref: 61
Topic: The Environment
102) The first step of managing external stakeholder relationships is to identify whom the
stakeholders are. The second step is to ________.
A) determine what specific approach should be used to manage the stakeholder relationship
B) determine what the courts might do when a stakeholder files a claim against the organization
C) determine what particular interests or concerns these stakeholders might have
D) determine how many stakeholders there are in each stakeholder group
Answer: C
Diff: 3
Page Ref: 63
Topic: The Environment
Apex Construction (Scenario)
Apex Construction has hired Wendell Phillips to provide management consulting for the
organization. Wendell's first assignment involves helping the company to improve productivity
by recommending ways to strengthen managers supervisory skills.
103) Wendell notices that the company's top executives share a belief that managers are directly
responsible for the organization's success or failure. This belief reflects a(n) ________ view of
management.
A) traditional
B) omnipotent
C) standard
D) symbolic
Answer: B
Diff: 2
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
104) Wendell interviews many middle-level managers and discovers that they share a different
view of management. These individuals believe that external factors constrain managers'
influence over outcomes. The mid-level managers have a ________ view of management.
A) traditional
B) omnipotent
C) standard
D) symbolic
Answer: D
Diff: 2
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
19
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Corporate Takeover (Scenario)
Todd works for SeaLan Tech, an environmental consulting firm that has just been purchased by
Zerex, Inc., a biomedical research organization. Based on his early encounters with the new
upper management from Zerex, Todd feels that SeaLan is a "lower-key, friendlier" organization.
He is concerned that the new company will eliminate SeaLan's old culture, and he does not like
the prospects.
105) If you were talking with Todd and asked him what the term culture meant, he would reply
that, basically, it is ________.
A) the formal rules of an organization
B) the nationality of the workers in the company
C) a system of shared meaning
D) a system that reflects diversity and respect for differences
Answer: C
Diff: 1
Page Ref: 46
Topic: Organizational Culture
106) Todd is concerned with the degree to which managers focus on results or outcomes rather
than techniques and the processes used to achieve those outcomes. He is concerned with
________.
A) stability
B) aggressiveness
C) team orientation
D) outcome orientation
Answer: D
Diff: 2
Page Ref: 47
Topic: Organizational Culture
107) Todd notices that management is very concerned with the effects of outcomes on people
within the organization. This is referred to as ________.
A) stability
B) aggressiveness
C) team orientation
D) people orientation
Answer: D
Diff: 2
Page Ref: 47
Topic: Organizational Culture
108) Todd is assessing the organization's ________, the degree to which organizational activities
emphasize maintaining the status quo in contrast to growth.
A) stability
B) aggressiveness
C) team orientation
D) outcome orientation
Answer: A
Diff: 2
Page Ref: 47
Topic: Organizational Culture
20
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
109) Todd has been learning the seven dimensions of organizational culture. Which of the
following is not one of those seven dimensions?
A) stability
B) aggressiveness
C) member orientation
D) outcome orientation
Answer: C
Diff: 2
Page Ref: 47
Topic: Organizational Culture
Changing Organizational Culture (Scenario)
Mary has been asked by the company president to change the organizational culture to reflect the
company's new organizational goals. As executive vice president, she certainly understands the
goals, but is really not sure that she understands what to do about the culture.
110) Mary asked employees if they knew what constituted "good employee behavior." She found
that very few understood, and most had a variety of ideas. This is one indication that her
company ________.
A) has a strong culture
B) has a weak culture
C) has no culture
D) must have high turnover
Answer: B
Diff: 2
Page Ref: 48
Topic: Organizational Culture
111) Mary also found out that in order to build a strong new culture, she should do all but which
of the following?
A) hire employees who fit in with the company's culture
B) develop socialization practices to build culture
C) encourage a high turnover rate among employees
D) have management make organizational values clear
Answer: C
Diff: 3
Page Ref: 48
Topic: Organizational Culture
112) Mary was surprised to find that most organizational cultures are ________.
A) weak
B) weak to moderate
C) moderate to strong
D) strong
Answer: C
Diff: 2
Page Ref: 48
Topic: Organizational Culture
21
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Environmental Constraints (Scenario)
It is safe to say that managers do not have complete control over organizational outcomes; the
environment has a significant impact. However, there are different environmental factors that
shape a managers work life.
113) As a manager, if you were working in an industry that was dependent on rapidly changing
software technologies, with many new companies competing for the same customers, you would
be working in what kind of environment?
A) general
B) static
C) stable
D) dynamic
Answer: D
Diff: 2
Page Ref: 61
Topic: The Environment
Skill: AACSB: Technology
114) Political conditions, which include attitudes that officials hold toward specific industries,
fall within an organization's ________ environment.
A) global
B) internal
C) competitive
D) general
Answer: D
Diff: 2
Page Ref: 58
Topic: The Environment
The Election (Scenario)
At the present time, your organization is faced with many changes. One of these is the election of
a new president and Congress. Another concerns new requests from customers for changes to the
look of your product design. A third involves changes in the ages and education levels of your
customer base. Your customers have also recently expressed a desire to have your product
manufactured using a newly discovered type of plastic.
115) The changes in the presidency and Congress represent which of the following
environmental factors for your organization?
A) general environment
B) specific environment
C) pressure group
D) customers
Answer: A
Diff: 2
Page Ref: 58
Topic: The Environment
22
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
116) The change in how customers want your product to look in design is an example of which
of the following types of factors?
A) political/legal
B) specific environment
C) global
D) demographic
Answer: B
Diff: 2
Page Ref: 58
Topic: The Environment
117) The changes in the ages and education levels of your customers are an example of which of
the following conditions?
A) economic
B) political/legal
C) demographic
D) technological
Answer: C
Diff: 2
Page Ref: 58
Topic: The Environment
The New Medical Product (Scenario)
You are a manager of marketing for your company. The company is planning to introduce a new
medical product that has stirred up controversy among certain public groups. Members of your
research and development department have pointed out that the company has a history of
introducing controversial products successfully. Members of your marketing staff respond by
emphasizing that this product is more controversial than any product introduced previously.
118) The public groups that oppose the introduction of the new medical product are known as
which of the following?
A) service groups
B) defense groups
C) pressure groups
D) informal groups
Answer: C
Diff: 2
Page Ref: 58
Topic: The Environment
119) The company plans to introduce the new product into a particular segment of its market.
This segment represents which of the following to the organization as a whole?
A) general environment
B) specific environment
C) political/legal condition
D) sociocultural condition
Answer: B
Diff: 3
Page Ref: 58
Topic: The Environment
23
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Operating Within the Environment (Scenario)
The environment places constraints on the behavior of managers. Suppose you are the manager
of a real estate office trying to maximize profits. You attempt to understand the forces within
your organizations environment.
120) If the mortgage interest rates increase, this would be an example of changing ________ in
your general environment.
A) economic conditions
B) political conditions
C) competition
D) social conditions
Answer: A
Diff: 2
Page Ref: 58
Topic: The Environment
121) The customer component of your specific environment most likely consists of ________.
A) mortgage brokers
B) home buyers and sellers
C) real estate brokers
D) mortgage lenders
Answer: B
Diff: 2
Page Ref: 58
Topic: The Environment
122) A real estate certification program would be considered as which of the following for your
organization?
A) customer
B) pressure group
C) supplier
D) demographic group
Answer: C
Diff: 2
Page Ref: 58
Topic: The Environment
24
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Chris Co. (Scenario)
Mr. Taylor has been hired by Chris Co., a manufacturer of precious metal jewelry. Chris Co. has
been having significant issues with some of their major stakeholders. For instance, they have
been receiving poor quality products from their suppliers and complaints from their customers.
Mr. Taylor has been hired to help resolve these issues and to help build a plan for improving the
company's relationships with its major stakeholders.
123) In addition to suppliers and customers, each of the following might also be considered Chris
Co. stakeholders except ________.
A) communities and unions
B) competitors and media
C) all of the above
D) none of the above
Answer: D
Diff: 2
Page Ref: 62
Topic: The Environment
124) Mr. Taylor assesses how critical each stakeholder is to the organization's decisions and
actions. This represents the ________ step of managing the company's relationships with its
stakeholders.
A) first
B) second
C) third
D) final
Answer: C
Diff: 1
Page Ref: 63
Topic: The Environment
125) Mr. Taylor identifies whom the organization's stakeholders are. This is the ________ step
in the process of managing stakeholder relationships.
A) first
B) second
C) third
D) final
Answer: A
Diff: 1
Page Ref: 63
Topic: The Environment
126) Mr. Taylor decides how to manage the external stakeholder relationships. This represents
the ________ step of managing the company's stakeholder relationships.
A) first
B) second
C) third
D) final
Answer: D
Diff: 1
Page Ref: 63
Topic: The Environment
25
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
127) In a short essay, differentiate between the symbolic view and the omnipotent view of
management. Include specific examples of each view to support your answer.
Answer: a. The view of managers as omnipotent is consistent with the stereotypical picture of
the take-charge business executive who can overcome any obstacle in carrying out the
organization's goals. This omnipotent view, of course, isn't limited to business organizations. We
can also use it to help explain the high turnover among college and professional sports coaches,
who can be considered the "managers" of their teams. Coaches who lose more games than they
win are fired and replaced by new coaches who, it is hoped, will correct the inadequate
performance.
In the omnipotent view, when organizations perform poorly, someone has to be held accountable
regardless of the reasons, and in our society, that "someone" is the manager. Of course, when
things go well, we need someone to praise. So managers also get the credit even if they had
little to do with achieving positive outcomes.
b. The symbolic view says that a manager's ability to affect outcomes is influenced and
constrained by external factors. In this view, it's unreasonable to expect managers to significantly
affect an organization's performance. Instead, an organization's results are influenced by factors
managers don't control such as the economy, customers, governmental policies, competitors'
actions, industry conditions, control over proprietary technology, and decisions made by
previous managers.
The "symbolic" view is based on the belief that managers symbolize control and influence. How?
By creating meaning out of randomness, confusion, and ambiguity or by trying to innovate and
adapt. Because their effect on organizational outcomes is limited, a managers actions often
involve developing plans, making decisions, and engaging in other managerial activities, which
are done for the benefit of stockholders, customers, employees, and the public. However, the
actual part that managers play in organizational success or failure is minimal.
Fleetwood Enterprises of Riverside, California, represents one example that might be seen
through the lens of the symbolic view of management. Fleetwood is the number one U.S. maker
of recreational vehicles and the number three maker of manufactured housing. In a period of
about 6 weeks from late August 2005, the company's stock price rose 29 percent. Also, Joanne
Foist, director of marketing services, confirmed that FEMA (Federal Emergency Management
Agency) had bought much of the company's retail stock after Hurricanes Katrina and Rita. Were
these outcomes the result of managers' decisions and actions, or was it beyond their control? The
symbolic view would suggest the latter.
Diff: 2
Page Ref: 45
Topic: The Manager: Omnipotent or Symbolic?
26
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
128) In a short essay, define organizational culture and discuss its three primary implications.
Answer: What is organizational culture? It's the shared values, principles, traditions, and ways
of doing things that influence the way organizational members act. In most organizations, these
important shared values and practices have evolved over time and determine, in large degree,
what employees perceive about their organizational experiences and how they behave in the
organization. When doing their work, the organizational culture the "way we do things around
here" influences what employees can do and how they view, define, analyze, and resolve
problems and issues.
Our definition of culture implies three things. First, culture is a perception. Individuals perceive
the organizational culture on the basis of what they see, hear, or experience within the
organization. Second, even though individuals may have different backgrounds or work at
different organizational levels, they tend to describe the organization's culture in similar terms.
That's the shared aspect of culture. Finally, organizational culture is descriptive. It's concerned
with how members perceive the organization, not with whether they like it. It describes rather
than evaluates.
Diff: 2
Page Ref: 46
Topic: Organizational Culture
129) In a short essay, identify and define the seven dimensions that make up an organization's
culture.
Answer: a. Innovation and risk taking degree to which employees are encouraged to be
innovative and to take risks.
b. Attention to detail degree to which employees are expected to exhibit precision, analysis,
and attention to detail.
c. Outcome orientation degree to which managers focus on results or outcomes rather than on
how these outcomes are achieved.
d. People orientation degree to which management decisions take into account the effects on
people in the organization.
e. Team orientation degree to which work is organized around teams rather than individuals.
f. Aggressiveness degree to which employees are aggressive and competitive rather than
cooperative.
g. Stability degree to which organizational decisions and actions emphasize maintaining the
status quo.
Diff: 2
Page Ref: 47
Topic: Organizational Culture
27
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
130) List the factors that influence the strength of an organization's culture and discuss the
impact of a strong culture on employees.
Answer: Factors:
a. size of the organization
b. how long it has been around
c. how much turnover there has been among employees
d. intensity with which the culture was originated
e. high agreement regarding what is important
The more employees accept the organization's key values and the greater their commitment to
those values, the stronger the culture is. Strong cultures have a greater influence on employees
than do weak cultures.
One study found that employees in organizations with strong cultures were more committed to
their organization than were employees in organizations with weak cultures. The organizations
with strong cultures also used their recruitment efforts and socialization practices to build
employee commitment. And an increasing body of evidence suggests that strong cultures are
associated with high organizational performance. It's easy to understand why a strong culture
enhances performance. After all, when values are clear and widely accepted, employees know
what they're supposed to do and what's expected of them so they can act quickly to take care of
problems, thus preventing any potential performance decline. However, the drawback is that the
same strong culture also might prevent employees from trying new approaches especially during
periods of rapid change.
Diff: 2
Page Ref: 47
Topic: Organizational Culture
28
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
131) How is culture transmitted to employees of an organization? In a short essay, explain the
four primary transmission modalities and provide an example of each.
Answer: Culture is transmitted to employees in a number of ways. The most significant are
stories, rituals, material symbols, and language.
a. Stories: Organizational "stories" typically contain a narrative of significant events or people
including such things as the organization's founders, rule breaking, reactions to past mistakes,
and so forth. For instance, managers at Nike feel that stories told about the company's past help
shape the future. Whenever possible, corporate "storytellers" (senior executives) explain the
company's heritage and tell stories that celebrate people getting things done.
b. Rituals: Corporate rituals are repetitive sequences of activities that express and reinforce the
values of the organization, what goals are most important, and which people are important. The
"Passing of the Pillars" is an important ritual at Boston Scientific's facility near Minneapolis, for
example. When someone has a challenging and tough project or assignment, they're "awarded" a
small two-foot high plaster-of-Paris pillar to show that they've got support from all their
colleagues.
c. Material Symbols: Material symbols convey to employees who is important, the degree of
equality desired by top management, and the kinds of behavior that are expected and appropriate.
Examples of material symbols include the layout of an organization's facilities, how employees
dress, the types of automobiles provided to top executives, and the availability of corporate
aircraft. At WorldNow, a provider of Internet technology to local media companies, an important
material symbol is an old dented drill that the founders purchased for $2 at a thrift store. The drill
symbolizes the company's culture of "drilling down to solve problems."
d. Language: Many organizations and units within organizations use language as a way to
identify and unite members of a culture. By learning this language, members attest to their
acceptance of the culture and their willingness to help preserve it.
For instance, Microsoft employees have their own unique vocabulary: the term work judo is used
to mean "the art of deflecting a work assignment to someone else without making it appear that
you're avoiding it.
Diff: 2
Page Ref: 50
Topic: Organizational Culture
29
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
132) In a short essay, discuss how culture constrains managers. Include specific examples to
support your answer.
Answer: Because an organization's culture constrains what they can and cannot do, it is
particularly relevant to managers. These constraints are rarely explicit. They're not written down.
It's unlikely that they'll even be spoken. But they're there, and all managers quickly learn what to
do and not to do in their organization. For instance, you won't find the following values written
down anywhere, but each comes from a real organization.
•
•
•
•
•
•
Look busy even if you're not.
If you take risks and fail around here, you'll pay dearly for it.
Before you make a decision, run it by your boss so that he or she is never surprised.
We make our product only as good as the competition forces us to.
What made us successful in the past will make us successful in the future.
If you want to get to the top here, you have to be a team player.
The link between values such as these and managerial behavior is fairly straightforward. Take,
for example, a so-called "ready-aim-fire" culture. In such an organization, managers will study
proposed projects first and analyze them endlessly before committing to them. However, in a
"ready-fire-aim" culture, managers take action and then analyze what has been done. Or, say an
organization's culture supports the belief that profits can be increased by cost cutting and that the
company's best interests are served by achieving slow but steady increases in quarterly earnings.
Managers are unlikely to pursue programs that are innovative, risky, long term, or expansionary.
For organizations that value and encourage workforce diversity, the organizational culture and
thus managers' decisions and actions, will be supportive of diversity efforts.
In an organization whose culture conveys a basic distrust of employees, managers are more
likely to use an authoritarian leadership style than a democratic one. Why? The culture
establishes for managers what is appropriate and expected behavior. At St. Luke's advertising
agency in London, for example, a culture shaped by the value placed on freedom of expression, a
lack of coercion and fear, and a determination to make work fun influences the way employees
work and the way that managers plan, organize, lead, and control. The organization's culture is
reinforced even by the office environment which is open, versatile, and creative.
Diff: 2
Page Ref: 51
Topic: Organizational Culture
30
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
133) In a short essay, explain the reasons behind the increasing importance of workplace
spirituality in recent years. How can managers best promote workplace spirituality within their
organizations?
Answer: Workplace spirituality seems to be important now for a number of reasons:
a. Employees are looking for ways to counterbalance the stresses and pressures of a turbulent
pace of life.
b. Contemporary lifestyles underscore the lack of community that many people feel. People are
looking for involvement and connection.
c. Aging baby boomers are reaching mid-life and looking for something meaningful in their
lives, something beyond the job.
d. Individuals desire to integrate their personal life values with their professional lives.
e. For some, formalized religion hasn't worked. These individuals continue to look for anchors
to replace a lack of faith and to fill a growing sense of emptiness.
To increase workplace spirituality within their organizations, managers can work to promote five
primary characteristics:
a. Strong sense of purpose: Spiritual organizations build their cultures around a meaningful
purpose. To build spiritual organizations, managers should emphasize that while profits are
important, they're not the primary values of the organization.
b. Focus on individual development: Spiritual organizations recognize the worth and value of
individuals. To increase workplace spirituality, managers should seek to create cultures in which
employees can continually grow and learn.
c. Trust and openness: Spiritual organizations are characterized by mutual trust, honesty, and
openness. To promote spirituality, managers shouldn't be afraid to admit mistakes. They should
be upfront with employees, customers, and suppliers.
d. Employee empowerment: The high-trust climate in spiritual organizations, when combined
with the desire to promote learning and growth, leads to managers empowering employees to
make most work-related decisions. To promote spirituality, managers should trust employees to
make thoughtful and conscientious decisions.
e. Toleration of employee expression: Spiritually based organizations don't stifle employee
emotions. To promote workplace spirituality, managers should create environments in which
employees can express their moods and feelings without guilt or fear of reprimand.
Diff: 3
Page Ref: 55
Topic: Organizational Culture
31
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
134) In a short essay, describe what is meant by the specific and general environments within
which organizations operate. Provide one example of each type of environment.
Answer: a. The specific environment of an organization includes those external forces that
have a direct impact on managers' decisions and actions and are directly relevant to the
achievement of the organization's goals. The main forces that make up the specific environment
are customers, suppliers, competitors, and pressure groups.
One component of the specific environment is suppliers. For Walt Disney World resorts in
Florida, suppliers include organizations that sell materials and equipment, such as soft drinks,
computers, and food. But the term suppliers also includes providers of financial and labor inputs.
Stockholders, banks, insurance companies, pension funds, and other similar organizations are
needed to ensure a continuous supply of capital. Labor unions, colleges and universities,
occupational associations, trade schools, and local labor markets are sources of employees.
b. An organization's general environment includes the broad economic, political/legal,
sociocultural, demographic, technological, and global conditions that affect the organization.
Although these external factors don't affect organizations to the extent that changes in the
specific environment do, managers must consider them as they plan, organize, lead, and control.
One example of general environmental factor is political/legal conditions. Legislation represents
one element of such conditions. Federal, state, and local laws, as well as global and other country
laws and regulations, influence what organizations can and cannot do. Some federal legislation
has significant implications. For example, the Americans with Disabilities Act of 1990 (ADA)
was designed to make jobs and facilities more accessible to people with disabilities, whether they
are customers or employees.
Diff: 2
Page Ref: 58
Topic: Organizational Culture
32
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 8 Strategic Management
1) Strategic management is the set of managerial decisions and actions that determines the shortterm performance of an organization.
Answer: FALSE
Diff: 2
Page Ref: 163
Topic: Corporate Strategies
2) "Strategic model" is a term that is often used in conjunction with strategic management and
strategies.
Answer: FALSE
Diff: 1
Page Ref: 163
Topic: Corporate Strategies
3) The first step in the strategic management process is analyzing the external environment.
Answer: FALSE
Diff: 3
Page Ref: 164
Topic: Corporate Strategies
4) Within an industry, an environment can present opportunities to one organization and pose
threats to another.
Answer: TRUE
Diff: 2
Page Ref: 165
Topic: Corporate Strategies
5) Evaluating an organization's intangible assets is part of doing an internal analysis in the
strategic management process.
Answer: TRUE
Diff: 1
Page Ref: 165
Topic: Corporate Strategies
6) Activities that an organization does well or resources that it has available are called
capabilities.
Answer: FALSE
Diff: 1
Page Ref: 165
Topic: Corporate Strategies
7) Exceptional or unique organizational resources are known as core capabilities.
Answer: FALSE
Diff: 2
Page Ref: 165
Topic: Corporate Strategies
8) SWOT analysis includes an analysis of an organization's environmental opportunities and
threats.
Answer: TRUE
Diff: 1
Page Ref: 165
Topic: Corporate Strategies
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
9) The final step in the strategic management process is implementing the objectives.
Answer: FALSE
Diff: 1
Page Ref: 166
Topic: Corporate Strategies
10) Corporate-level strategies are developed for organizations that run more than one type of
business.
Answer: TRUE
Diff: 2
Page Ref: 167
Topic: Corporate Strategies
11) A trucking company that grows by purchasing a chain of gasoline stations is engaged in
horizontal integration.
Answer: FALSE
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
12) Diversification is an example of a corporate retrenchment strategy.
Answer: FALSE
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
13) If Burger King were to buy out Mom and Pop's Burgers, Burger King would be growing by
vertical consolidation.
Answer: FALSE
Diff: 3
Page Ref: 168
Topic: Corporate Strategies
14) A stability strategy is developed when management decides it will remain profitable by
maintaining the status quo in a rapidly changing external environment.
Answer: TRUE
Diff: 3
Page Ref: 168
Topic: Corporate Strategies
15) A retrenchment strategy is a shortrun renewal strategy designed to address organizational
weaknesses that are leading to performance declines.
Answer: TRUE
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
16) Turnaround is one type of renewal strategy.
Answer: TRUE
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
17) The BCG matrix evaluates an organization's various businesses to identify which ones offer
high potential and which drain organizational resources.
Answer: TRUE
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
18) Stars, one of the four business groups in the corporate portfolio matrix, are characterized by
low growth and low market share.
Answer: FALSE
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
19) When managers "manage strategically" by following the strategic management process, the
chosen strategies will always lead to positive outcomes.
Answer: FALSE
Diff: 1
Page Ref: 171
Topic: Competitive Strategies
20) What is a strategic design for how a company intends to profit from its strategies, work
processes, and work activities?
A) business model
B) strategic model
C) strategic management model
D) competitive model
Answer: A
Diff: 1
Page Ref: 163
Topic: Strategic Management
21) Studies of the factors that contribute to organizational performance have shown ________
relationship between strategic planning and performance.
A) no
B) a mixed
C) a negative
D) a positive
Answer: D
Diff: 1
Page Ref: 163
Topic: Strategic Management
22) Why is strategic management important?
A) It has little impact on organizational performance.
B) It is involved in many of the decisions that managers make.
C) Most organizations do not change.
D) Organizations are composed of similar divisions and functions.
Answer: B
Diff: 2
Page Ref: 163
Topic: Strategic Management
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
23) The first ________ steps of the strategic management process describe the planning that
must take place.
A) two
B) three
C) four
D) five
Answer: C
Diff: 2
Page Ref: 164
Topic: Strategic Management Process
24) In the first step of strategic management, the mission of the firm answers the question,
________
A) What business should we be in?
B) What is our reason for being in business?
C) Who are our customers?
D) Who are our creditors?
Answer: B
Diff: 2
Page Ref: 164
Topic: Strategic Management Process
25) What provides clues to what an organization sees as its purpose?
A) the organization's goals
B) the organization's strategies
C) the organization's business model
D) the organization's mission
Answer: D
Diff: 1
Page Ref: 164
Topic: Strategic Management Process
26) In the first step of strategic management, identifying the current strategies and goals provides
________.
A) a basis to determine if the goals need to be changed
B) an understanding of what the competition is doing
C) an idea of what trends and changes are occurring
D) important information about an organization's specific resources and capabilities
Answer: A
Diff: 2
Page Ref: 164
Topic: Strategic Management Process
27) In analyzing the environment, managers should know ________.
A) the competition's stock price
B) pending legislation that might affect the organization
C) the organization's purpose
D) the goals currently in place and the strategies currently being used
Answer: B
Diff: 2
Page Ref: 165
Topic: Strategic Management Process
4
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
28) When an organization is analyzing its labor supply, it is studying its ________.
A) organizational culture
B) internal environment
C) external environment
D) organizational structure
Answer: C
Diff: 2
Page Ref: 165
Topic: Strategic Management Process
29) ________ and ________ are outcomes from a study of the external environment.
A) Threats; weaknesses
B) Strengths; weaknesses
C) Weights; measures
D) Opportunities; threats
Answer: D
Diff: 2
Page Ref: 165
Topic: Strategic Management Process
30) The third step in strategic management is related to analysis of ________.
A) the external environment
B) the internal environment
C) the alternatives the firm faces
D) time pressures involved in serving the customer
Answer: B
Diff: 2
Page Ref: 165
Topic: Strategic Management Process
31) What are an organization's financial, physical, human, and intangible assets that are used to
develop, manufacture, and deliver products or services to its customers?
A) its resources
B) its capabilities
C) its opportunities
D) its core competencies
Answer: A
Diff: 1
Page Ref: 165
Topic: Strategic Management Process
32) If a bank estimates the capabilities of its training and development department employees
prior to implementing a new training program designed to change their method of providing
customer service, it is completing what step in the strategic management process?
A) doing an external analysis
B) identifying the organization's current mission, goals, and strategies
C) doing an internal analysis
D) formulating strategies
Answer: C
Diff: 2
Page Ref: 165
Topic: Strategic Management Process
5
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
33) ________ are the organization's major value-creating skills, capabilities, and resources that
determine the organization's competitive weapons.
A) Strengths
B) Opportunities
C) Core competencies
D) Weaknesses
Answer: C
Diff: 2
Page Ref: 165
Topic: Strategic Management Process
34) An example of a core competency of a firm is ________.
A) the corporate reputation
B) communicating with customers in their own languages worldwide
C) developing least-squared exemptions within its accounting system
D) evaluating tangible and intangible assets
Answer: B
Diff: 2
Page Ref: 165
Topic: Strategic Management Process
Skill: AACSB: Communication
35) Corporate reputation is an organization's ________ resource.
A) financial
B) physical
C) intangible
D) human
Answer: C
Diff: 2
Page Ref: 165
Topic: Strategic Management Process
36) The merging of the analyses of internal and external factors influencing the organization's
strategy is known as ________.
A) complete studies
B) organizational behavior and theory
C) definitional analysis
D) SWOT analysis
Answer: D
Diff: 1
Page Ref: 165
Topic: Strategic Management Process
37) The final step in strategic planning answers the question, ________
A) How effective have our strategies been?
B) What business have we been in?
C) What business should we have we been in?
D) How much money have we lost?
Answer: A
Diff: 2
Page Ref: 166
Topic: Strategic Management Process
6
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
38) Middle-level managers typically are responsible for ________ strategies.
A) competitive
B) organizational
C) operational
D) corporate
Answer: A
Diff: 2
Page Ref: 167
Topic: Corporate Strategies
39) ________ strategy determines what businesses an organization should be in.
A) Business
B) Organizational
C) Operational
D) Corporate
Answer: D
Diff: 2
Page Ref: 167
Topic: Corporate Strategies
40) When PepsiCo seeks to integrate the strategies of Pepsi, 7-Up International, and Frito-Lay, it
is developing what level of business strategy?
A) functional
B) system
C) management
D) corporate
Answer: D
Diff: 2
Page Ref: 167
Topic: Corporate Strategies
41) What are the three main types of corporate strategies?
A) concentration, integration, and diversification
B) growth, stability, and renewal
C) retrenchment, turnaround, and clicks-and-bricks
D) cost leadership, differentiation, and focus
Answer: B
Diff: 1
Page Ref: 167
Topic: Corporate Strategies
42) There are three main types of growth strategies: ________.
A) concentration, integration, and diversification
B) concentration, integration, and exfoliation
C) integration, diversification, and infiltration
D) concentration, integration, and focus
Answer: A
Diff: 1
Page Ref: 167
Topic: Corporate Strategies
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
43) Growth through ________ is achieved when an organization chooses to grow by increasing
its own business operations.
A) concentration
B) horizontal integration
C) vertical integration
D) related diversification
Answer: A
Diff: 2
Page Ref: 167
Topic: Corporate Strategies
44) In ________, the organization gains control of its outputs by becoming its own distributor.
A) backward horizontal integration
B) forward horizontal integration
C) backward vertical integration
D) forward vertical integration
Answer: D
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
45) When an organization attempts to combine with other organizations in the same industry, the
strategy is known as ________.
A) concentration
B) horizontal integration
C) vertical integration
D) a stability strategy
Answer: B
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
46) If United Airlines were to merge with Northwest Airlines, this would be an example of what
kind of growth strategy?
A) horizontal integration
B) acquisition
C) expansion
D) vertical integration
Answer: A
Diff: 3
Page Ref: 168
Topic: Corporate Strategies
47) An organization that is diversifying its product line is exhibiting what type of growth
strategy?
A) stability
B) retrenchment
C) growth
D) maintenance
Answer: C
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
48) When an organization attempts to combine with other organizations in different, but
associated industries, the strategy is known as a ________ strategy.
A) growth
B) horizontal integration
C) vertical integration
D) related diversification
Answer: D
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
49) When an organization attempts to combine with other organizations in different and
disassociated industries, the strategy is known as a(n) ________ strategy.
A) unrelated diversification
B) horizontal integration
C) vertical integration
D) stability
Answer: A
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
50) A(n) ________ strategy addresses organizational weaknesses, helps stabilize operations, and
revitalizes organizational resources and capabilities.
A) unrelated diversification
B) horizontal integration
C) vertical integration
D) retrenchment
Answer: D
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
51) What type of strategy is a renewal strategy for times when the organization's performance
problems are more critical?
A) retrenchment
B) turnaround
C) focus
D) differentiation
Answer: B
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
52) In the Boston Consulting Group (BCG) matrix, a business unit that exists in a low
anticipated growth rate and a high market share is known as a ________.
A) cash cow
B) star
C) dog
D) question mark
Answer: A
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
53) In the BCG matrix, a business unit that exists in a high anticipated growth rate and a low
market share is known as a ________.
A) cash cow
B) star
C) dog
D) question mark
Answer: D
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
54) In the BCG matrix, a ________ does not consume or produce much cash and holds little or
no improved performance.
A) cash cow
B) star
C) dog
D) question mark
Answer: C
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
55) Managers should "milk" cash cows for as much as they can, limit any new investment in
them, and use the large amounts of cash generated to invest in ________ and ________.
A) more cash cows; question marks
B) stars; dogs
C) stars; question marks
D) question marks; dogs
Answer: C
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
56) Heavy investment in ________ will help take advantage of the market's growth and help
maintain high market share.
A) cash cows
B) stars
C) question marks
D) dogs
Answer: B
Diff: 3
Page Ref: 169
Topic: Corporate Strategies
10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
57) The ________ should be sold off or liquidated as they have low market share in markets with
low growth potential.
A) cash cows
B) stars
C) question marks
D) dogs
Answer: D
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
58) What can provide a framework for understanding diverse businesses and help managers
establish priorities for making resource allocation decisions?
A) a competitive advantage
B) a competitive strategy
C) a corporate portfolio matrix
D) a strategic business unit
Answer: C
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
59) For a small organization in only one line of business, the competitive strategy simply
describes ________.
A) how the company will compete in its main market
B) what products or services it will offer
C) the customers it wants to reach
D) its competitive advantage
Answer: A
Diff: 2
Page Ref: 170
Topic: Competitive Strategies
60) An organization is said to have ________ when it has several different businesses that are
independent and that formulate their own strategies.
A) operational units
B) strategic business units
C) competitive advantages
D) legal subunits
Answer: B
Diff: 2
Page Ref: 170
Topic: Competitive Strategies
61) An example of ________ is when an organization possesses a characteristic that sets itself
apart from competitors and gives the firm a distinctive edge.
A) core competency
B) competitive power
C) legal propriety
D) competitive advantage
Answer: D
Diff: 3
Page Ref: 170
Topic: Competitive Strategies
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62) To a degree, an organization's commitment to quality and continuous improvement can
differentiate it from competitors, but constant improvement and reliability of an organization's
products and/or services may result in a competitive advantage that is ________.
A) weighted
B) sustainable
C) conservative
D) uncertain
Answer: B
Diff: 3
Page Ref: 170
Topic: Competitive Strategies
63) What can challenge managers' attempts at creating a long-term, sustainable competitive
advantage?
A) old technologies
B) predictable changes
C) competitive strategies
D) market instabilities
Answer: D
Diff: 2
Page Ref: 171
Topic: Competitive Strategies
64) Cost leadership as a strategy requires a firm to ________.
A) aggressively search out efficiencies to maintain the lowest cost structure
B) be unique in its product offering
C) aim at a cost advantage in a niche market
D) aim to be similar to its competition in most operations
Answer: A
Diff: 3
Page Ref: 172
Topic: Competitive Strategies
65) Differentiation as a strategy requires a firm to ________.
A) aggressively search out efficiencies to maintain the lowest cost structure
B) be unique in its product offering
C) aim at a cost advantage in a niche market
D) aim to be similar to its competition in all operations
Answer: B
Diff: 3
Page Ref: 172
Topic: Competitive Strategies
66) Practically any successful consumer product or service can be identified as an example of the
________.
A) differentiation strategy
B) focus strategy
C) breadth strategy
D) cost leadership strategy
Answer: A
Diff: 2
Page Ref: 172
Topic: Competitive Strategies
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67) What generic competitive strategy involves a cost advantage or a differentiation advantage in
a narrow segment or niche?
A) differentiation
B) focus
C) breadth
D) cost leadership
Answer: B
Diff: 2
Page Ref: 172
Topic: Competitive Strategies
68) When following the focus strategy, a ________ can be based on product variety, type of end
buyer, distribution channel, or geographic location of buyers.
A) segment
B) cost focus
C) differentiation advantage
D) unique product
Answer: A
Diff: 3
Page Ref: 172
Topic: Competitive Strategies
69) A firm that is "stuck in the middle" cannot develop ________.
A) a cost or differentiation advantage
B) an effective strategy
C) long-term success
D) strategic flexibility
Answer: A
Diff: 2
Page Ref: 172
Topic: Competitive Strategies
70) Functional-level strategy directly supports ________.
A) corporate strategy
B) competitive strategy
C) differentiation strategy
D) focus strategy
Answer: B
Diff: 3
Page Ref: 172
Topic: Competitive Strategies
71) What is the ability to recognize major external environmental changes, to quickly commit
resources, and to recognize when a strategic decision is not working?
A) strategic flexibility
B) strategic management
C) competitive advantage
D) an opportunity
Answer: A
Diff: 1
Page Ref: 173
Topic: Current Strategic Management Issues
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72) How can a company create strategic flexibility?
A) encourage employees to be open about disclosing negative information
B) know what has happened with strategies in the past
C) get old ideas from senior employees
D) never make mistakes
Answer: A
Diff: 2
Page Ref: 174
Topic: Current Strategic Management Issues
73) How can a cost leader use e-business to reduce costs?
A) by adding a sales phone line and a sales force
B) by personally testing and evaluating job applicants
C) by using stand-alone locations only
D) by using Web-based inventory control systems that reduce storage costs
Answer: D
Diff: 2
Page Ref: 174
Topic: Current Strategic Management Issues
Skill: AACSB: Technology
74) An Internet-based knowledge management system that resulted in shorter customer response
times would be one e-business technique that contributes to the competitive advantage of a
________.
A) cost leader
B) differentiator
C) focuser
D) star
Answer: B
Diff: 2
Page Ref: 174
Topic: Current Strategic Management Issues
Skill: AACSB: Technology
75) Who targets a narrow market segment with customized products?
A) a differentiator
B) a clicks-and-bricks firm
C) a focuser
D) a first mover
Answer: C
Diff: 2
Page Ref: 174
Topic: Current Strategic Management Issues
76) What e-business strategy uses both online and traditional stand-alone locations?
A) functional
B) clicks-and-bricks
C) focus
D) differentiation
Answer: B
Diff: 2
Page Ref: 174
Topic: Current Strategic Management Issues
Skill: AACSB: Technology
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77) Customer service strategies involve giving the customers what they want, effective
communication, and ________.
A) providing employees with incentives and bonuses for good service
B) providing employees with customer service training
C) commitment from upper management
D) applying existing technology to new uses
Answer: B
Diff: 2
Page Ref: 174
Topic: Current Strategic Management Issues
78) Innovation strategies should reflect the organization's philosophy about innovation, which is
shaped by ________.
A) communication of innovations and innovation training
B) giving the customers what they want and targeting a narrow market segment with customized
products
C) innovation emphasis and innovation timing
D) innovative technology and Internet technology
Answer: C
Diff: 2
Page Ref: 175
Topic: Current Strategic Management Issues
79) Senior managers must decide whether or not the emphasis of their innovation efforts is going
to be based upon ________.
A) market research
B) communication
C) process improvement
D) cost effectiveness
Answer: C
Diff: 2
Page Ref: 175
Topic: Current Strategic Management Issues
80) What company would benefit most from using a scientific research strategy to achieve high
performance levels?
A) Merck
B) Wal-Mart
C) Macy's
D) Delta Airlines
Answer: A
Diff: 3
Page Ref: 175
Topic: Current Strategic Management Issues
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81) Process development strategies seek to achieve a competitive advantage by ________.
A) looking for ways to enhance existing work processes
B) committing to scientific research
C) making the firm more effective
D) improving on existing technology
Answer: A
Diff: 1
Page Ref: 175
Topic: Current Strategic Management Issues
82) The first organization to bring a product or service to market is often referred to as the
________.
A) prime player
B) market leader
C) first mover
D) trailblazer
Answer: C
Diff: 1
Page Ref: 175
Topic: Current Strategic Management Issues
83) What is a strategic advantage of being a first mover?
A) certainty over the direction of technology and market
B) low development costs
C) no financial or strategic risks
D) cost and learning benefits
Answer: D
Diff: 2
Page Ref: 176
Topic: Current Strategic Management Issues
84) What is a strategic disadvantage of being a first mover?
A) a slow start at forming customer relationships and customer loyalty
B) risk of competitors imitating innovations
C) reputation for being a follower
D) no control over resources
Answer: B
Diff: 2
Page Ref: 176
Topic: Current Strategic Management Issues
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A New Business (Scenario)
Patrick majored in entrepreneurship and computer science in college. After graduation, he
decided to start his own business as an e-business entrepreneur, founding an online B2B reverse
auction company called CompuSave.
85) After hiring several employees, Patrick requires that each person in this company be
involved in studying trends involving new technology, competitors, and customers. These
employees are involved in ________.
A) external analysis
B) internal environment
C) strategic management
D) strategic flexibility
Answer: A
Diff: 2
Page Ref: 164
Topic: The Strategic Management Process
Skill: AACSB: Technology
86) Patrick to complete a SWOT for the company's internal environment each quarter. This
includes
A) strengths and weaknesses
B) opportunities and threats
C) strengths and opportunities
D) threats and weaknesses
Answer: A
Diff: 2
Page Ref: 165
Topic: The Strategic Management Process
87) Patrick needs to complete a SWOT of the external environment in order to put together his
strategic plan. he will analyze the
A) threats and weaknesses
B) strengths and weaknesses
C) opportunities and threats
D) strengths and opportunities
Answer: C
Diff: 2
Page Ref: 165
Topic: The Strategic Management Process
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SWOT Analysis (Scenario)
As a process of self-examination during her senior year of college, Casey decides to develop a
SWOT analysis of her prospects relative to getting a job.
88) Casey realizes that she has a personal characteristic that suggests she is not comfortable
interacting with strangers. She interprets this as a(n) ________ if she is to get a job as a
salesperson.
A) alternative
B) strength
C) weakness
D) opportunity
Answer: C
Diff: 2
Page Ref: 165
Topic: The Strategic Management Process
89) Casey majored in marketing and really enjoyed studies in market research. Through research
on the Internet and in the university library, she discovers that this industry appears to have
significant positive external trends. She interprets this as a(n) ________.
A) alternative
B) strength
C) weakness
D) opportunity
Answer: D
Diff: 2
Page Ref: 165
Topic: The Strategic Management Process
90) Casey has been involved in ________ at a personal level.
A) opportunity analysis
B) risk avoidance
C) strategic planning
D) stage decision making
Answer: C
Diff: 1
Page Ref: 164
Topic: Strategic Management
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Un Taco Pequeno (Scenario)
Imagine that you are the president of Taco Rocket, a new and successful chain of 100 Mexican
fast-food restaurants. The success you have experienced in the last five years has you thinking of
what to do with the business next. Should you expand the business at the current rate? Open new
and different restaurants? What?
91) You decide to concentrate on Taco Rocket's primary business by only increasing the menu to
include new items such as enchiladas and rice bowls. This is an example of what type of growth
strategy?
A) lateral growth
B) horizontal integration
C) concentration
D) related diversification
Answer: C
Diff: 2
Page Ref: 167
Topic: Corporate Strategies
92) Your oldest supplier, Zorro Distributors, is a family-owned firm. Recently, the firm's
president, Diego De La Vega, made the decision to retire. To his disappointment, none of his five
children stepped forward to take his place at the helm of the firm. Sr. De La Vega is concerned
that if he sells his company to a larger distributor, many of his employees will lose their jobs.
You approach your old friend with a generous offer to buy Zorro and continue its current
operations. Should your offer be accepted, Taco Rocket would be undertaking ________.
A) lateral growth
B) unrelated diversification
C) forward vertical integration
D) backward vertical integration
Answer: D
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
93) You decide to purchase a local five-store hardware chain because it was a good investment.
This is an example of ________.
A) a lateral growth strategy
B) a combination purchase
C) related diversification
D) unrelated diversification
Answer: D
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
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94) Because of the good profits and a fear of growing too fast, you decide to keep Taco Rocket in
the same business and do not change the menu. You hope to retain the same market share and
return-on-investment record. This is considered a ________ strategy.
A) stability
B) growth
C) combination
D) diversification
Answer: A
Diff: 1
Page Ref: 168
Topic: Corporate Strategies
Powerballs (Scenario)
Colleen invested a dollar in the Powerball Lottery and won $60 million. Subsequently, she
decides to start her own business selling lawn mowers.
95) Colleen is successful after the first 3 years, and she is approached by a competitor who is
nearing retirement age. The competitor is interested in selling his business to Colleen. For
Colleen, this would be a(n) ________ strategy.
A) unrelated diversification
B) horizontal integration
C) vertical integration
D) retrenchment
Answer: B
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
96) A business broker hears that Colleen is interested in purchasing a business and approaches
her with an offer to sell her a company that owns a patent on a new roofing product and who
installs this new roofing in the southwestern United States. If she buys this firm, she will be
using a(n) ________ strategy.
A) unrelated diversification
B) horizontal integration
C) vertical integration
D) related diversification
Answer: A
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
97) No matter which business Colleen decides to buy, she intends to operate each business
independently and allow each to determine its own strategy. This will mean that each company
will be a(n) ________.
A) operational unit
B) strategic business unit
C) competitive advantage
D) legal subunit
Answer: B
Diff: 2
Page Ref: 170
Topic: Corporate Strategies
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98) Colleen decides that she wants to assemble lawn mowers. She decides that she wants a
business to develop a distinctive edge in producing high-quality lawn mowers. This emphasis on
quality is to be so strong that her company will have a ________ that will set her company apart
from her competition.
A) core competence
B) competitive power
C) legal propriety
D) competitive advantage
Answer: D
Diff: 2
Page Ref: 170
Topic: Corporate Strategies
El Taco Grande (Scenario)
As the original owner of Taco Rocket, you have seen your business holdings grow substantially
over the last 10 years. The number of stores you own and franchise has grown by 200 percent
and you own a number of companies in related and unrelated areas.
99) You purchased Shanghai Grill and Zorro Distributors after being in business for five years.
What level of strategy integrates the strategies of your various business units?
A) corporate level
B) business level
C) functional level
D) strategic level
Answer: A
Diff: 1
Page Ref: 167
Topic: Corporate Strategies
100) You called the Boston Consulting Group (BCG), and they have provided you with some
advice based on their famous corporate portfolio matrix. Your oldest holding, Taco Rocket, has
not grown much in recent years, but due to low debt, it generates a huge amount of cash.
According to BCG, Taco Rocket would be considered a ________.
A) cash cow
B) star
C) question mark
D) dog
Answer: A
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
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101) Recently, you also purchased a company that manufactures a new satellite dish, allowing
you to enter into the cable television market. The business is profitable and growing, but the
technological unknowns make it risky. BGC considers it a ________.
A) cash cow
B) star
C) question mark
D) dog
Answer: C
Diff: 2
Page Ref: 169
Topic: Corporate Strategies
102) You now need to decide how to best manage and utilize the large number of assets
represented by the numerous companies you own. For each SBU, you must create a ________
strategy to determine how your corporation should compete in each of its businesses.
A) corporate-level
B) business-level
C) functional-level
D) tactical
Answer: B
Diff: 2
Page Ref: 166
Topic: Corporate Strategies
22
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Megabyte Center, S.A. (Scenario)
Your old friend, Ariel Eskenazi, is the owner and general manager of Megabyte Center, a
computer reseller and systems integrator located in Panama City, Panama. Since leaving IBM to
start a business in his home country, Ariel's company has steadily grown, due in large part to the
business partnerships he's established over the years with large foreign computer and software
firms, such as Goldstar and Microsoft. These relationships have helped his company win
considerable market share in Panama, as well as in other parts of Latin America. However, since
the 1999 turnover of the Panama Canal to the Panamanian government, there has been a huge
influx of foreign capital into Panama. For example, several large Asian firms have made Panama
a beachhead for their American operations. Tourism is on the rise, with over a score of new
hotels built in the metropolitan area alone over the past three years. As a result, demand for
Megabyte's products and services has increased markedly, but so has the level and diversity of its
competition. While Megabyte's customer base has remained fairly loyal, many longtime
customers are beginning to demand price concessions and enhanced service levels in return for
their continued business. Additionally, Ariel has learned recently that several of his former
suppliers and business partners are considering establishing local sales offices of their own in
Panama City. Ariel knows you are very knowledgeable about competitive strategy and calls you
asking for advice. You begin by telling him about the types of corporate strategies.
103) With all the changes presently occurring in the computer reseller market, you advise him to
stay with his present course until the market calms down. You are recommending which
corporate strategy for Ariel to use?
A) renewal
B) stability
C) growth
D) retrenchment
Answer: B
Diff: 2
Page Ref: 168
Topic: Corporate Strategies
104) Once Ariel has assessed the five forces and determined the threats and opportunities that
exist in the current environment, you tell him that he is then ready to select an appropriate
competitive strategy. Porter outlines three "generic" strategies: cost leadership, differentiation,
and ________.
A) niche
B) segmentation
C) focus
D) stuck in the middle
Answer: C
Diff: 2
Page Ref: 172
Topic: Competitive Strategies
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105) Because his customers are demanding price concessions and enhanced service levels in
return for their continued business, Ariel decides that he wants to compete by offering unique
products that are widely valued by customers. What strategy is Ariel following?
A) focus
B) cost leadership
C) differentiation
D) stability
Answer: C
Diff: 2
Page Ref: 172
Topic: Competitive Strategies
106) Ariel is considering forgoing the retail side of his business entirely. Instead, he will redirect
his resources toward reselling hardware and software and providing systems integration services
to the Latin American governmental and industrial sectors. Such a move would be most
representative of which one of Porter's generic strategies?
A) niche
B) segmentation
C) focus
D) stuck in the middle
Answer: C
Diff: 2
Page Ref: 172
Topic: Competitive Strategies
107) In a short essay, explain why strategic management is important.
Answer: One of the most significant reasons that strategic management is important is that it can
make a difference in how well an organization performs. The most basic questions about strategy
look at why firms succeed or fail, and why, when faced with the same environmental conditions,
their performance levels vary. Studies of the factors that contribute to organizational performance
generally have shown a positive relationship between strategic planning and performance. In
other words, it appears that organizations that use strategic management do have higher levels of
performance. And that makes it pretty important for managers! Another reason strategic
management is important has to do with the fact that organizations of all types and sizes face
continually changing situations. These changes may be minor or significant, but it's still change
with which managers must cope. That's where strategic management comes in. Using the
strategic management process, managers examine relevant factors in deciding what actions to
take, thus helping them better cope with uncertain environments. Strategic management is also
important because of the nature of organizations. They're composed of diverse divisions,
departments, functions, and work activitiesmanufacturing, marketing, accounting, and so
forththat all need to be coordinated and focused on achieving the organization's goals. Strategic
management does this. Strategic management helps in coordinating and focusing employees by
clarifying and pinpointing what's important and by providing the reasons for why they're doing
what they're doing. Finally, strategic management is important because it's involved in many of
the decisions that managers make.
Diff: 2
Page Ref: 163
Topic: Strategic Management
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108) In a short essay, describe the strategic management process and identify the six stages in the
process.
Answer: The strategic management process is a six-step process that encompasses strategy
planning, implementation, and evaluation. The first four steps describe the planning that must
take place. Even the best strategies can fail if management doesn't implement or evaluate them
properly. The first step in the strategic management process is to identify the organization's
current mission, goals, and strategies. Defining the organization's mission forces managers to
identify what it's in business to do. Knowing the company's current goals gives managers a basis
for assessing whether those goals need to be changed. For the same reasons, it's important for
managers to know the organization's current strategiesto assess whether any need to be
changed. The second step is to do an external analysis. Managers need to know, for instance,
what the competition is doing, what pending legislation might affect the organization, or what
the labor supply is like in locations where it operates. In analyzing the external environment,
managers should examine both the specific and general environments to see what trends and
changes are occurring. After analyzing the environment, managers need to assess what they have
learned in terms of opportunities that the organization can exploit, and threats that it must
counteract or buffer against. The third step is to do an internal analysis, which provides important
information about an organization's specific resources and capabilities. After doing the internal
analysis, managers should be able to identify organizational strengths and weaknesses. This step
forces managers to recognize that their organizations, no matter how large or successful, are
constrained by the resources and capabilities they have. The combined external and internal
analyses are called SWOT analysis because it's an analysis of the organization's strengths,
weaknesses, opportunities, and threats. The fourth step is to formulate strategies. As managers
formulate strategies, they have to consider the realities of the external environment and their
available resources and capabilities and design strategies that will help the organization achieve
its goals. After strategies are formulated, they must be implemented. A strategy is only as good as
its implementation. The final step in the strategic management process is evaluating results. How
effective have the strategies been? Have they helped the organization reach its goals? What
adjustments, if any, are necessary?
Diff: 2
Page Ref: 164
Topic: Strategic Management
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109) In a short essay, list and discuss the three levels of strategy that a large organization must
develop.
Answer: a. Corporate strategythis strategy seeks to determine what businesses a company
should be in or wants to be in. Corporate strategy determines the direction that the organization is
going and the roles that each business unit in the organization will plan in pursuing that direction.
b. Competitive strategythis strategy seeks to determine how an organization should compete
in each of its businesses. For a small organization in only one line of business or the large
organization that has not diversified into different products or markets, the business strategy
typically overlaps with the organization's corporate strategy. For organizations with multiple
businesses, however, each division will have its own strategy that defines the products or
services it will offer and the customers it wants to reach.
c. Functional strategythis strategy seeks to determine how to support the business strategy.
For organizations that have traditional functional departments such as manufacturing, marketing,
human resources, research and development, and finance, these strategies need to support the
business strategy.
Diff: 2
Page Ref: 167-172
Topic: Corporate and Competitive Strategies
110) In a short essay, discuss the Boston Consulting Group (BCG) matrix and explain its
usefulness in segmenting businesses. Include a discussion of the characteristics for each of the
four categories based on the BCG matrix.
Answer: The Boston Consulting Group matrix introduced the idea that an organization's
businesses could be evaluated and plotted using a 2 × 2 matrix to identify which ones offered
high potential and which were a drain on organizational resources. The horizontal axis represents
market share, which was evaluated as either low or high; and the vertical axis indicates
anticipated market growth, which also was evaluated as either low or high. Based on its
evaluation, the business was placed in one of four categories:
a. Cash cows (low growth, high market share)businesses in this category generate large
amounts of cash, but their prospects for future growth are limited.
b. Stars (high growth, high market share)these businesses are in a fast-growing market, and
hold a dominant share of that market. Their contribution to cash flow depends on their need for
resources.
c. Question marks (high growth, low market share)these businesses are in an attractive
industry, but hold a small market share percentage.
d. Dogs (low growth, low market share)businesses in this category do not produce or
consume much cash. However, they hold little promise for improved performance.
Diff: 1
Page Ref: 169
Topic: Corporate Strategies
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
111) In a short essay, discuss the concept of competitive advantage. Include specific examples of
companies and their respective competitive advantages to support your answer.
Answer: Competitive advantage is what sets an organization apart, that is, its distinctive edge.
That distinctive edge comes from the organization's core competencies, which might be in the
form of organizational capabilitiesthe organization does something that others cannot do or
does it better than others can do it. For example, Dell has developed a competitive advantage
based upon its ability to create a direct-selling channel that's highly responsive to customers.
Southwest Airlines has a competitive advantage because it is skilled in giving passengers what
they wantquick, convenient, and fun service. Or those core competencies that lead to
competitive advantage also can come from organizational assets or resourcesthe organization
has something that its competitors do not have. For instance, Wal-Mart's state-of-the-art
information systems allows it to monitor and control inventories and supplier relations more
efficiently than its competitors, which Wal-Mart has turned into a price advantage.
Diff: 1
Page Ref: 170
Topic: Competitive Strategies
112) In a short essay, list and discuss the three competitive strategies, according to Michael
Porter. Include specific examples of companies that pursue each of the three competitive
strategies.
Answer: a. Cost leadership strategywhen an organization sets out to be the lowest-cost
producer in its industry, it's following a cost leadership strategy. A low-cost leader aggressively
searches out efficiencies in production, marketing, and other areas of operation. Overhead is kept
to a minimum, and the firm does everything it can to cut costs. For example, at Wal-Mart's
headquarters in Bentonville, Arkansas, office furnishings are sparse and drab, but functional.
Although low-cost leaders don't place a lot of emphasis on "frills," the product or service being
sold must be perceived as comparable in quality to that offered by rivals or at least be acceptable
to buyers. Examples of companies that have used the low-cost leader strategy include Wal-Mart,
Hyundai, and Southwest Airlines.
b.
Differentiation strategythe company that seeks to offer unique products, which are
widely valued by customers is following a differentiation strategy. Sources of differentiation
might be exceptionally high quality, extraordinary service, innovative design, technological
capability, or an unusually positive brand image. The key to this competitive strategy is that
whatever product or service attribute is chosen for differentiation must set the firm apart from its
competitors and be significant enough to justify a price premium that exceeds the cost of
differentiation. Practically any successful product or service can be identified as an example of
the differentiation strategy: Nordstrom (customer service), Sony (reputation for quality and
innovative design), Coach handbags (design and brand image), and Kimberly-Clark's Huggies
Pull-Ups (product design).
c.
Focus strategythe aim of the focus strategy is at a cost advantage or a differentiation
advantage in a narrow segment. That is, managers select a market segment or group of segments
in an industry and don't attempt to serve the broad market. The goal of a focus strategy is to
exploit a narrow segment of a market. These segments can be based on product variety, type of
end buyer, distribution channel, or geographical location of buyers. Research suggests that the
focus strategy may be the most effective choice for small businesses because they typically do
not have the economies of scale or internal resources to successfully pursue one of the other two
strategies.
Diff: 2
Page Ref: 172
Topic: Competitive Strategies
27
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
113) In a short essay, discuss how managers can formulate e-business strategies that contribute to
the development of a sustainable competitive advantage in today's environment.
Answer: Managers can formulate e-business strategies that contribute to the development of a
sustainable competitive advantage. A cost leader can use e-business to reduce costs in a variety
of ways. It might use online bidding and order processing to eliminate the need for sales calls
and to decrease sales force expenses. It could use Web-based inventory control systems that
reduce storage costs; or it might use online testing and evaluation of job applicants. A
differentiator needs to offer products or services that customers perceive and value as unique.
How could e-business contribute? The differentiator might use Internet-based knowledge
systems to shorten customer response times, provide rapid online responses to service requests,
or automate purchasing and payment systems so that customers have detailed status reports and
purchasing histories. Finally, because the focuser targets a narrow market segment with
customized products, it might provide chat rooms or discussion boards for customers to interact
with others who have common interests; design niche Web sites that target specific groups with
specific interests, or use Web sites to perform standardized office functions such as payroll or
budgeting. Research has shown that an important e-business strategy might be a clicks-andbricks strategy. A clicks-and-bricks firm is one that uses both online (clicks) and traditional
stand-alone locations (bricks).
Diff: 2
Page Ref: 174
Topic: Current Strategic Management Issues
Skill: AACSB: Technology
114) In a short essay, explain the term "first mover" and then identify the strategic advantages
and disadvantages of being a first mover in the market.
Answer: An organization that's first to bring a product innovation to the market or to use a new
process innovation is called a first mover. Some organizations pursue this route, hoping to
develop a sustainable competitive advantage. Others have successfully developed a sustainable
competitive advantage by being the followers in the industry. They let the first movers pioneer
the innovations and then mimic their products or processes. Which approach managers choose
depends on their organization's innovation philosophy and specific resources and capabilities.
One strategic advantage of being a first mover is that the company gains a reputation for being
innovative and an industry leader. Besides the obvious cost and learning benefits, the company
can gain control over scarce resources and keep competitors from having access to them. The
first mover also has the opportunity to begin building customer relationships and customer
loyalty. One of the disadvantages of being a first mover is that the company is uncertain about
the exact direction of the technology and of the market. Also, the company assumes financial and
strategic risks. In addition, the first mover accepts the risk that competitors will imitate their
innovations. Finally, first movers frequently have high development costs.
Diff: 2
Page Ref: 174
Topic: Current Strategic Management Issues
28
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 13 Understanding Individual Behavior
1) One of the challenges in understanding organizational behavior is that it addresses issues that
aren't obvious.
Answer: TRUE
Diff: 2
Page Ref: 282
Topic: Focus and Goals of Organizational Behavior
2) Organizational behavior is primarily concerned with group interactions.
Answer: FALSE
Diff: 2
Page Ref: 283
Topic: Focus and Goals of Organizational Behavior
3) Turnover is the failure to report to work.
Answer: FALSE
Diff: 1
Page Ref: 284
Topic: Focus and Goals of Organizational Behavior
4) Attitudes are evaluative statements concerning objects, people, or events.
Answer: TRUE
Diff: 2
Page Ref: 284
Topic: Attitudes and Job Performance
5) Since the 1990s, the number of workers who say they are satisfied with their jobs has been
increasing.
Answer: FALSE
Diff: 3
Page Ref: 285
Topic: Attitudes and Job Performance
6) Research on the relationship between satisfaction and turnover shows that satisfied employees
have lower levels of turnover while dissatisfied employees have higher levels of turnover.
Answer: TRUE
Diff: 2
Page Ref: 286
Topic: Attitudes and Job Performance
7) Satisfied employees increase customer satisfaction and loyalty because they are more likely to
be friendly, upbeat, and responsive.
Answer: TRUE
Diff: 3
Page Ref: 286
Topic: Attitudes and Job Performance
8) Individuals try to reconcile differing attitudes and align their attitudes and behavior so they
appear rational and consistent.
Answer: TRUE
Diff: 3
Page Ref: 288
Topic: Attitudes and Job Performance
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
9) Cognitive dissonance theory seeks to explain the correlated relationship between the affective,
cognitive, and behavioral components of attitudes.
Answer: FALSE
Diff: 2
Page Ref: 289
Topic: Attitudes and Job Performance
10) The Myers-Briggs Type Indicator (MBTI®) lacks evidence to support its validity.
Answer: TRUE
Diff: 2
Page Ref: 291
Topic: Personality
11) In the Big Five Model, emotional security was positively related to job performance.
Answer: FALSE
Diff: 3
Page Ref: 292
Topic: Personality
12) The Big Five Model found that calm and secure workers performed better than nervous ones.
Answer: FALSE
Diff: 3
Page Ref: 292
Topic: Personality
13) A person who rates as being high in Machiavellianism would accomplish a task regardless of
what it takes.
Answer: TRUE
Diff: 2
Page Ref: 293
Topic: Personality
14) Employees with high self-esteem tend to be more satisfied with their jobs than those with
low self-esteem.
Answer: TRUE
Diff: 2
Page Ref: 293
Topic: Personality
15) A low self-monitoring employee would not adjust well to self-sent signals, but would
respond well to signals in his or her external environment.
Answer: FALSE
Diff: 3
Page Ref: 293
Topic: Personality
16) People from Middle Eastern countries believe they can dominate their environment.
Answer: FALSE
Diff: 3
Page Ref: 295
Topic: Personality
17) U.S. workers, more than Iranian workers, would likely have an external locus of control.
Answer: FALSE
Diff: 2
Page Ref: 295
Topic: Personality
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
18) According to Holland's Typology, a realistic personality type might be well-suited to be an
economist.
Answer: FALSE
Diff: 2
Page Ref: 297
Topic: Personality
19) According to Holland's Typology, farming is considered a conventional job type.
Answer: FALSE
Diff: 2
Page Ref: 297
Topic: Personality
20) According to Holland's Typology, enterprising types tend to be self-confident, ambitious,
energetic, and domineering.
Answer: TRUE
Diff: 2
Page Ref: 297
Topic: Personality
21) Attribution is a process by which individuals organize and interpret their sensory impressions
in order to give meaning to their environment.
Answer: FALSE
Diff: 1
Page Ref: 297
Topic: Perceptions
22) Distinctiveness refers to whether an individual displays a behavior in many situations or
whether it's particular to one situation.
Answer: TRUE
Diff: 2
Page Ref: 298
Topic: Perceptions
23) In stereotyping, the observer's perception of others is influenced by the observer's own
characteristics rather than by those of the person observed.
Answer: FALSE
Diff: 2
Page Ref: 300
Topic: Perceptions
24) Your human resource director believes that married employees are more stable than single
persons are. This is an example of the halo similarity.
Answer: FALSE
Diff: 2
Page Ref: 300
Topic: Perceptions
25) If a manager thinks that all attractive employees are also productive employees, the manager
is committing an error based on a halo effect.
Answer: TRUE
Diff: 2
Page Ref: 300
Topic: Perceptions
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
26) Operant conditioning argues that behavior is a function of its consequences.
Answer: TRUE
Diff: 1
Page Ref: 301
Topic: Learning
27) The influence that models have on an individual is fully determined by attentional processes.
Answer: FALSE
Diff: 2
Page Ref: 302
Topic: Learning
28) Behavior is shaped by systematically reinforcing each successive step that moves the
individual closer to the desired behavior
Answer: TRUE
Diff: 2
Page Ref: 302
Topic: Learning
29) Generation Y workers have low expectations of themselves and their employers.
Answer: FALSE
Diff: 1
Page Ref: 304
Topic: Contemporary OB Issues
30) In a survey of U.S. employees, 10 percent said they witnessed rudeness daily within their
workplaces and 20 percent said that they personally were direct targets of incivility at work at
least once a week.
Answer: TRUE
Diff: 3
Page Ref: 305
Topic: Contemporary OB Issues
31) Research shows that only responsive actions to negative behaviors are needed.
Answer: FALSE
Diff: 3
Page Ref: 305
Topic: Contemporary OB Issues
32) Organizational behavior focuses on group behavior and ________.
A) individual behavior
B) financial performance
C) departmental performance
D) societal influences
Answer: A
Diff: 2
Page Ref: 283
Topic: Focus and Goals of Organizational Behavior
4
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
33) Organizational behavior provides managers with considerable insights into hidden aspects of
the organization, which include ________.
A) strategies
B) informal interactions
C) structure
D) policies and procedures
Answer: B
Diff: 2
Page Ref: 283
Topic: Focus and Goals of Organizational Behavior
34) Which of the following is associated with the study of individuals?
A) norms
B) roles
C) team building
D) perception
Answer: D
Diff: 2
Page Ref: 284
Topic: Focus and Goals of Organizational Behavior
35) Which of the following is not associated with the study of individuals?
A) attitudes
B) motivation
C) roles
D) perception
Answer: C
Diff: 3
Page Ref: 284
Topic: Focus and Goals of Organizational Behavior
36) One of the goals of organizational behavior is to ________ behavior.
A) examine
B) identify
C) influence
D) create
Answer: C
Diff: 2
Page Ref: 283
Topic: Focus and Goals of Organizational Behavior
37) A common behavior that is typically studied in organizational behavior is ________.
A) job satisfaction
B) pay satisfaction
C) individualism
D) risk taking
Answer: A
Diff: 2
Page Ref: 284
Topic: Focus and Goals of Organizational Behavior
5
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
38) ________ is a performance measure of both efficiency and effectiveness of employees.
A) Employee productivity
B) Organizational citizenship behavior
C) Job satisfaction
D) Turnover
Answer: A
Diff: 1
Page Ref: 283
Topic: Focus and Goals of Organizational Behavior
39) ________ is the failure to report to work.
A) Turnover
B) Tardiness
C) Absenteeism
D) Negligence
Answer: C
Diff: 1
Page Ref: 283
Topic: Focus and Goals of Organizational Behavior
40) What is not one way that workplace misbehavior shows up in organizations?
A) deviance
B) aggression
C) regression
D) antisocial behavior
Answer: C
Diff: 2
Page Ref: 284
Topic: Focus and Goals of Organizational Behavior
41) The three components that make up an attitude are ________.
A) cognitive, affective, and behavioral
B) traits, behavioral, and emotional
C) knowledge, opinion, and individual history
D) intention, opinion, and environment
Answer: A
Diff: 1 Page Ref: 284
Topic: Attitudes and Job Performance
42) The component of attitude that is made up of beliefs and opinions is ________.
A) cognitive
B) behavioral
C) affective
D) practices
Answer: A
Diff: 2
Page Ref: 284
Topic: Attitudes and Job Performance
6
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
43) In the statement, "The highway is very busy at 5 P.M. and is scary to drive on, so I'll wait
until 7 P.M. to go home," the phrase, "The highway is very busy," represents which component of
an attitude?
A) cognitive
B) behavioral
C) emotive
D) affective
Answer: A
Diff: 3
Page Ref: 284
Topic: Attitudes and Job Performance
44) The ________ component of attitude is based on emotions.
A) cognitive
B) behavioral
C) affective
D) practice
Answer: C
Diff: 2
Page Ref: 284
Topic: Attitudes and Job Performance
45) In the statement, "The highway is very busy at 5 P.M., and is scary to drive on, so I'll wait
until 7 P.M. to go home," the word "scary" represents which component of an attitude?
A) cognitive
B) behavioral
C) emotive
D) affective
Answer: D
Diff: 3
Page Ref: 284
Topic: Attitudes and Job Performance
46) When someone chooses to act in a certain way, she is demonstrating the ________
component of her attitude.
A) cognitive
B) behavioral
C) affective
D) practices
Answer: B
Diff: 2
Page Ref: 284
Topic: Attitudes and Job Performance
7
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
47) In the statement, "The highway is very busy at 5 P.M. and is scary to drive, so I'll wait until 7
P.M. to go home," the phrase, "so I'll wait until 7 P.M. to go home," represents which component
of an attitude?
A) cognitive
B) behavioral
C) emotive
D) affective
Answer: B
Diff: 3
Page Ref: 284
Topic: Attitudes and Job Performance
48) Usually, the term attitude refers only to the ________ component.
A) cognitive
B) emotive
C) behavioral
D) affective
Answer: D
Diff: 1
Page Ref: 284
Topic: Attitudes and Job Performance
49) What does the research evidence suggest about the statement, "Happy workers are
productive workers"?
A) It's false. Instead, productive workers are least happy.
B) There is strong supportive evidence since the Hawthorne Studies.
C) There is a small positive relationship between the two variables.
D) Actually, there is no relationship between the two variables.
Answer: C
Diff: 2
Page Ref: 285
Topic: Attitudes and Job Performance
50) Which of the following is true about organizationally committed and satisfied employees?
A) lower rates of turnover and absenteeism
B) higher rates of voluntary turnover
C) higher rates of cognitive dissonance
D) much higher pay levels
Answer: A
Diff: 1
Page Ref: 287
Topic: Attitudes and Job Performance
51) The degree to which an employee identifies with his or her job or actively participates in it
refers to the employee's ________.
A) job involvement
B) organizational commitment
C) global commitment
D) job satisfaction
Answer: A
Diff: 3
Page Ref: 287
Topic: Attitudes and Job Performance
8
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52) The degree to which an employee identifies with a particular organization and its goals and
wishes to maintain its membership in the organization is the employees' ________.
A) job involvement
B) organizational commitment
C) global commitment
D) organizational citizenship
Answer: B
Diff: 3
Page Ref: 287
Topic: Attitudes and Job Performance
53) ________ is employees' general belief that their organization values their contribution and
cares about their well-being.
A) Job involvement
B) Organizational commitment
C) Perceived organizational support
D) Cognitive dissonance
Answer: C
Diff: 1
Page Ref: 287
Topic: Attitudes and Job Performance
54) The cognitive dissonance theory proposed that the desire to reduce dissonance is determined
by ________.
A) importance, influence, and rewards
B) economics, politics, and organizational structure
C) stability, position, and power
D) awareness, status, and punishments
Answer: A
Diff: 3
Page Ref: 289
Topic: Attitudes and Job Performance
55) Which of the following cases contains an element that may lead a politician to correct
cognitive dissonance?
A) A politician does not really care if the spotted owl lives or becomes extinct.
B) The politician has the power to pass legislation to keep the spotted owl from extinction.
C) The politician will get reelected for ignoring the needs of the spotted owl.
D) The politician grew up in the city.
Answer: B
Diff: 3
Page Ref: 289
Topic: Attitudes and Job Performance
56) The regular use of ________ can alert managers to potential problems and employees'
intentions early enough to do something about them.
A) rewards
B) job satisfaction surveys
C) attitude components
D) attitude surveys
Answer: D
Diff: 1
Page Ref: 289
Topic: Attitudes and Job Performance
9
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57) ________ is the unique combination of psychological traits that describe a person.
A) Psychology
B) Intelligence
C) Behavior
D) Personality
Answer: D
Diff: 2
Page Ref: 291
Topic: Personality
58) If you are a person who dislikes taking time for precision work, such as completing tax
returns, you would probably score high on what aspect of the Myers-Briggs Type Indicator
(MBTI®)?
A) extrovert
B) feeling
C) intuitive
D) judgmental
Answer: C
Diff: 3
Page Ref: 291
Topic: Personality
59) The MBTI® assesses preferences for decision making as ________.
A) extrovert or introvert
B) sensing or intuitive
C) feeling or thinking
D) agreeable or disagreeable
Answer: C
Diff: 2
Page Ref: 291
Topic: Personality
60) As a manager, if you prefer to have a harmonious work environment and dislike
reprimanding your subordinates, you would probably score high on what aspect of the MBTI®?
A) introvert
B) sensing
C) intuitive
D) feeling
Answer: D
Diff: 2
Page Ref: 291
Topic: Personality
61) The MBTI® assesses style of making decisions as ________.
A) extrovert or introvert
B) sensing or intuitive
C) agreeable or disagreeable
D) perceptive or judgmental
Answer: D
Diff: 2
Page Ref: 291
Topic: Personality
10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
62) If your boss could be described as flexible, adaptable, and tolerant, he or she would probably
score high on what aspect of the MBTI®?
A) extrovert
B) sensing
C) feeling
D) perceptive
Answer: D
Diff: 2
Page Ref: 291
Topic: Personality
63) On the MBTI®, if you are a good planner, you would probably score high on ________.
A) extrovert
B) intuitive
C) thinking
D) judgmental
Answer: D
Diff: 3
Page Ref: 291
Topic: Personality
64) The Big Five Model of personality includes all of the following except ________.
A) extroversion
B) agreeableness
C) conscientiousness
D) social interaction
Answer: D
Diff: 3
Page Ref: 292
Topic: Personality
65) In the Big Five Model of personality, ________ refers to the degree to which someone is
good-natured, cooperative, and trusting.
A) extraversion
B) agreeableness
C) conscientiousness
D) emotional stability
Answer: B
Diff: 2
Page Ref: 292
Topic: Personality
66) If you believe that you control your own destiny, then your personality would be described
as having a(n) ________.
A) external locus of control
B) high Machiavellianism score
C) high self-esteem
D) internal locus of control
Answer: D
Diff: 3
Page Ref: 293
Topic: Personality
11
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
67) Employees who have a high internal locus of control ________.
A) exhibit more satisfaction with their jobs
B) are more alienated from their work setting
C) are less involved in their jobs
D) blame their bosses for poor performance
Answer: A
Diff: 2
Page Ref: 293
Topic: Personality
68) An individual who is high in ________ is pragmatic, maintains emotional distance, and
believes that ends can justify means.
A) self-esteem
B) Machiavellianism
C) self-monitoring
D) risktaking
Answer: B
Diff: 2
Page Ref: 293
Topic: Personality
69) A person who believes that "the ends justify the means" would describe a person who has a
high level of what personality trait?
A) self-confidence
B) Machiavellianism
C) locus of control
D) self-monitoring
Answer: B
Diff: 2
Page Ref: 293
Topic: Personality
70) If you like yourself, then your personality would be described as having a(n) ________.
A) internal locus of control
B) low Machiavellianism score
C) high self-esteem
D) external locus of control
Answer: C
Diff: 2
Page Ref: 293
Topic: Personality
71) People with high self-esteem ________.
A) have low expectations for success but are happy with themselves
B) take fewer risks than others
C) choose more unconventional jobs
D) are susceptible to external influence
Answer: C
Diff: 2
Page Ref: 293
Topic: Personality
12
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
72) ________ is a personality trait that measures an individual's ability to adjust his or her
behavior to external situational factors.
A) Machiavellianism
B) Self-esteem
C) Self-monitoring
D) Locus of control
Answer: C
Diff: 1
Page Ref: 293
Topic: Personality
73) A person who can adapt and adjust behavior to external factors has ________.
A) low self-esteem
B) internal locus of control
C) high self-monitoring
D) high risk-taking
Answer: C
Diff: 2
Page Ref: 293
Topic: Personality
74) A manager who takes very little time to make a decision probably has ________.
A) high self-esteem
B) external locus of control
C) low self-monitoring
D) high risktaking
Answer: D
Diff: 2
Page Ref: 294
Topic: Personality
75) Which of the following is true concerning personality types and national cultures?
A) There is no relationship between nationality type and cultures.
B) Middle Eastern countries believe they can dominate their environment.
C) You would find many people with an internal locus of control in the United States and
Canada.
D) North Americans believe life is essentially predetermined.
Answer: C
Diff: 2
Page Ref: 295
Topic: Personality
76) Emotional intelligence has been shown to be ________.
A) negatively related to job performance at all levels
B) negatively related to job performance in middle management only
C) positively related to job performance only in government agencies
D) positively related to job performance at all levels
Answer: D
Diff: 2
Page Ref: 296
Topic: Personality
13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
77) A biologist would be a good occupational match for what personality type?
A) realistic
B) investigative
C) social
D) enterprising
Answer: B
Diff: 2
Page Ref: 297
Topic: Personality
78) A person who rates high on Holland's social scale would probably find a good match with
which of the following jobs?
A) farmer
B) painter
C) teacher
D) economist
Answer: C
Diff: 3
Page Ref: 297
Topic: Personality
79) A person rating high on the conventional personality type would have a good job match for
all but which of the following jobs?
A) accountant
B) corporate manager
C) mechanic
D) bank teller
Answer: C
Diff: 3
Page Ref: 297
Topic: Personality
80) According to Holland's social scale, becoming a lawyer would be a good job match for
someone who is ________.
A) realistic
B) investigative
C) conventional
D) enterprising
Answer: D
Diff: 2
Page Ref: 297
Topic: Personality
81) Writing would be a good job match for a(n) ________ personality type, according to
Holland's social scale.
A) realistic
B) investigative
C) social
D) artistic
Answer: D
Diff: 2
Page Ref: 297
Topic: Personality
14
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
82) What is a key point of Holland's theory?
A) There are no intrinsic differences in personality among individuals.
B) All jobs are relatively the same.
C) People in job environments compatible with their personality types should be more satisfied.
D) There appears to be extrinsic differences in personality among individuals.
Answer: C
Diff: 2
Page Ref: 296
Topic: Personality
83) ________ is the process of organizing and interpreting sensory impressions to give meaning
to the environment.
A) Attribution
B) Selection
C) Learning
D) Perception
Answer: D
Diff: 1
Page Ref: 297
Topic: Perceptions
84) What are the three factors that act to shape and sometimes distort perception?
A) the perceiver, the target, and the situation
B) distinctiveness, consensus, and consistency
C) assumed similarity, stereotyping, and the halo effect
D) attribution theory, fundamental attribution error, and self-serving bias
Answer: A
Diff: 2
Page Ref: 298
Topic: Perceptions
85) ________ theory explains how we judge people differently depending on what meaning we
attribute to a given behavior.
A) Perception
B) Behavior
C) Attribution
D) Social contrast
Answer: C
Diff: 2
Page Ref: 298
Topic: Perceptions
86) If everyone who's faced with a similar situation responds in the same way, we can say the
behavior shows ________.
A) consensus
B) distinctiveness
C) consistency
D) internal attribution
Answer: A
Diff: 2
Page Ref: 299
Topic: Perceptions
15
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
87) If a person who is always late for work is late once again and blames it on a train, coworkers
would probably attribute that person's lateness to ________.
A) the train
B) an external source
C) the individual
D) the car
Answer: C
Diff: 1
Page Ref: 299
Topic: Perceptions
88) In attribution theory, an employee who underestimates the influence of external factors and
overestimates the influence of internal factors is said to have ________.
A) fundamental attribution error
B) self-serving bias
C) low risktaking
D) high risktaking
Answer: A
Diff: 2
Page Ref: 299
Topic: Perceptions
89) ________ is the tendency for individuals to attribute their own successes to internal factors
such as ability or effort while putting the blame for personal failure on external factors such as
luck.
A) Assumed similarity
B) Stereotyping
C) Fundamental attribution error
D) Self-serving bias
Answer: D
Diff: 1
Page Ref: 299
Topic: Perceptions
90) In ________, the observer's perception of others is influenced more by the observer's own
characteristics than by those of the person observed.
A) stereotyping
B) self-serving bias
C) assumed similarity
D) the halo effect
Answer: C
Diff: 2
Page Ref: 300
Topic: Perceptions
16
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
91) When people judge someone on the basis of the perception of a group they are a part of, they
are using the shortcut called ________.
A) stereotyping
B) self-serving bias
C) assumed similarity
D) the halo effect
Answer: A
Diff: 2
Page Ref: 300
Topic: Perceptions
92) By using ________, we form an impression about a person based on a single characteristic,
such as intelligence or appearance.
A) stereotyping
B) selectivity
C) the halo effect
D) assumed similarity
Answer: C
Diff: 2
Page Ref: 300
Topic: Perceptions
93) Managers need to recognize that their employees react to ________.
A) reality
B) perceptions
C) attitudes
D) job descriptions
Answer: B
Diff: 2
Page Ref: 300
Topic: Perceptions
94) Any relatively permanent change in behavior that occurs as a result of experience is known
as ________.
A) training
B) learning
C) development
D) change
Answer: B
Diff: 1
Page Ref: 301
Topic: Learning
95) ________ describes voluntary or learned behavior.
A) Reflexive behavior
B) Social behavior
C) Operant behavior
D) Shaping behavior
Answer: C
Diff: 1
Page Ref: 301
Topic: Learning
17
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
96) When a model's influence depends on how well an individual remembers the model's
behavior, we call this ________.
A) retention processes
B) motor reproduction processes
C) attentional processes
D) reinforcement processes
Answer: A
Diff: 2
Page Ref: 302
Topic: Learning
97) After seeing a behavior in social learning situations, a person can learn by performing the
behavior. This is known as ________.
A) retention processes
B) motor reproduction processes
C) attentional processes
D) reinforcement processes
Answer: B
Diff: 2
Page Ref: 302
Topic: Learning
98) When behaviors are reinforced, they will be given more attention, be learned better, and
performed more often. This is called ________.
A) retention processes
B) motor reproduction processes
C) attentional processes
D) reinforcement processes
Answer: D
Diff: 2
Page Ref: 302
Topic: Learning
99) When a manager molds an individual's behavior by guiding his or her learning gradual steps,
this describes ________.
A) retention processes
B) motor reproduction processes
C) attentional processes
D) shaping processes
Answer: D
Diff: 2
Page Ref: 302
Topic: Learning
100) If an employee does not exhibit a desired behavior, a manager might use ________.
A) negative reinforcement to increase the recurrence of the behavior
B) shaping to guide the employee to learn the desired behavior
C) positive reinforcement by reducing the threat of a punishment
D) disappearance to make a behavior disappear
Answer: B
Diff: 2
Page Ref: 302
Topic: Learning
18
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
101) When a behavior is followed by something pleasant, it is called ________.
A) shaping
B) positive reinforcement
C) negative reinforcement
D) punishment
Answer: B
Diff: 3
Page Ref: 302
Topic: Learning
102) ________ is accomplished by penalizing undesirable behavior to eliminate it.
A) Punishment
B) Positive reinforcement
C) Negative reinforcement
D) Extinction
Answer: A
Diff: 3
Page Ref: 302
Topic: Learning
103) If an employee exhibits an undesirable behavior, a manager can use ________.
A) extinction by removing the reinforcement that maintains that behavior
B) negative reinforcement to reduce the recurrence of that behavior
C) positive punishment to penalize that behavior
D) negative punishment to reinforce the positive behavior
Answer: A
Diff: 3
Page Ref: 302
Topic: Learning
104) One of the major issues that is having a major influence on managers' jobs today is
managing ________.
A) generational differences
B) personality differences
C) attitudes
D) perceptions
Answer: A
Diff: 1
Page Ref: 303
Topic: Contemporary OB Issues
105) Issues including appearance, technology, and management style may cause conflicts and
resentment for ________.
A) baby boomers
B) Gen X workers
C) Gen Y workers
D) centurions
Answer: C
Diff: 2
Page Ref: 304
Topic: Contemporary OB Issues
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106) What can managers do to deal with workplace misbehavior?
A) ignore negative behaviors
B) pretend misbehaviors don't exist
C) pay no attention to employee attitudes
D) screen potential employees for certain personality traits
Answer: D
Diff: 2
Page Ref: 305
Topic: Contemporary OB Issues
The New Supervisor (Scenario)
David is a new supervisor and has been assigned to supervise a group of manufacturing
operatives. As he begins his job, he observes the employees under his supervision. These
employees have been working for several years in this company. The attitude of each employee
is different.
107) One of the employees is an active participant in work teams, volunteers if she sees a need
for a job to be done, and frequently makes positive comments about how much she appreciates
the company. Her ________ shapes her attitude.
A) job involvement
B) organizational commitment
C) global commitment
D) organizational citizenship behavior
Answer: D
Diff: 2
Page Ref: 284
Topic: Focus and Goals of Organizational Behavior
108) One employee's attitude is shaped heavily by his beliefs and knowledge of the company's
views of unions. David feels this employee centers on the ________ component of his attitude.
A) cognitive
B) behavioral
C) affective
D) practices
Answer: A
Diff: 1
Page Ref: 284
Topic: Attitudes and Job Performance
109) Two of David's subordinates do not like each other because of each other's religious
affiliations. The attitudes of these employees are based on the ________ component of their
attitudes.
A) cognitive
B) behavioral
C) affective
D) practices
Answer: C
Diff: 1
Page Ref: 284
Topic: Attitudes and Job Performance
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110) Two other employees do not work well together because of their opposing political
affiliations. They are allowing the ________ component of their attitudes to control their
attitude.
A) cognitive
B) behavioral
C) affective
D) practices
Answer: B
Diff: 1
Page Ref: 284
Topic: Attitudes and Job Performance
111) One of David's subordinates seems to identify with the organization and its goals. He also
appears to maintain membership in the organization. This is an example of ________.
A) job involvement
B) organizational commitment
C) global commitment
D) job satisfaction
Answer: B
Diff: 2
Page Ref: 284
Topic: Attitudes and Job Performance
112) David feels strongly that he should work longer hours to develop his career, but he and his
wife have a new baby. He is torn between two obligations. ________ describes this
inconsistency between these his attitudes and his beliefs.
A) Job involvement
B) Organizational commitment
C) Cognitive dissonance
D) Job satisfaction
Answer: C
Diff: 2
Page Ref: 289
Topic: Attitudes and Job Performance
The Unhappy Employee (Scenario)
Mary is not happy in her current employment. Her job requires that she attempt to sell some
products that she feels are inferior to other products in her product line. Mary has a quota that
requires that she sell both high- and low-quality products before she can receive her commission.
In her opinion, the lower quality products are overpriced.
113) Although Mary sells both products, she is torn between her beliefs and the actions she must
take. This inconsistency or incompatibility is known as ________.
A) negative feedback
B) difficult objectives
C) cognitive dissonance
D) management by objectives
Answer: C
Diff: 2
Page Ref: 289
Topic: Attitudes and Job Performance
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114) Mary can be expected to ________ the dissonance that she feels.
A) increase
B) reduce
C) accept
D) reject
Answer: B
Diff: 3
Page Ref: 289
Topic: Attitudes and Job Performance
Just Your Type Employees (Scenario)
Doug has recently been promoted to manager of a group of 13 scientists. All of his employees
are well educated and have been with the company for a minimum of three years. In an attempt
to learn more about the employees and to better assign them to jobs that they will enjoy, he has
administered the Myers-Briggs Type Indicator (MBTI)®.
115) Sandy is patient with details and good at precise work. She dislikes new problems unless
there are standard ways to solve them. Sandy's preferred method of gathering data is ________.
A) sensing
B) feeling
C) introverted
D) intuitive
Answer: A
Diff: 2
Page Ref: 291
Topic: Personality
116) Alan tends to dislike doing the same thing repeatedly and jumps to conclusions. He is
impatient with routine details. Alan's data-gathering preference is ________.
A) sensing
B) feeling
C) introverted
D) intuitive
Answer: D
Diff: 2
Page Ref: 291
Topic: Personality
117) George dislikes telling people unpleasant things and relates well to most people. George
tends to be ________.
A) sensing
B) feeling
C) introverted
D) intuitive
Answer: B
Diff: 2
Page Ref: 291
Topic: Personality
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118) Doug's decision-making style is spontaneous. He focuses on starting a task and postpones
decisions. His decision-making style is ________.
A) sensing
B) feeling
C) introverted
D) perceptive
Answer: D
Diff: 2
Page Ref: 291
Topic: Personality
An Interesting Group (Scenario)
Robin has her hands full. She recently took over managing the technical support group at her
company and immediately noticed that her supervisors represent a collection of personalities like
she had never seen before. She was having a problem understanding them and called the human
resource department who referred her to a local psychologist. The psychologist suggested that
she do some "low-key" testing. Robin agreed, as she felt she had to have some understanding of
her supervisors soon or she would go nuts! The testing was completed and Robin reviewed the
results of the information.
119) Peter, her assistant manager, seems to always maintain an emotional distance from others
and others from him. He is self-described as "pragmatic," and the test indicates that he believes
that the "ends justify the means," descriptions that are consistent with characteristics of
________.
A) high Machiavellianism
B) low self-esteem
C) high self-monitoring
D) low cognitive dissonance
Answer: A
Diff: 1
Page Ref: 293
Topic: Personality
120) Though clearly capable, Mary does not seem to like herself. Her results indicate an
unwillingness to take risks in job selection, and she seems very susceptible to evaluations from
other people. Together, these finding indicate that Mary is ________.
A) high in cognitive dissonance
B) high in Machiavellianism
C) low in self-monitoring
D) low in self-esteem
Answer: D
Diff: 1
Page Ref: 293
Topic: Personality
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121) Sarah, the floor supervisor, seems to be a different person depending on whom she is with
and what the situation demands. The tests are consistent with this observation, indicating her
ability to adjust her behavior. This is consistent with her being described as having ________.
A) high self-esteem
B) low Machiavellianism
C) high risk taking
D) high self-monitoring
Answer: D
Diff: 2
Page Ref: 293
Topic: Personality
122) Kevin is a whirlwind as research and development supervisor. He makes decisions very
quickly and always with less information than others. This characteristic is consistent with his
test, which describes him as having ________.
A) high self-esteem
B) low Machiavellianism
C) high risk taking
D) low cognitive dissonance
Answer: C
Diff: 2
Page Ref: 294
Topic: Personality
Mentoring Careers (Scenario)
Jeff was glad to see the high school interns come and work in his office and glad to see them
go. It was not that he did not enjoy their company or that they did not work hard and attempt to
perform at a high level. Many times he had seen kids come into his plant determined to be in a
particular occupation that did not suit them. It was both frustrating and sad to see them try so
hard at something they did not like and were not good at performing. So, for this next group of
five interns, he decided to do something different. He did a little research and found out about
Holland's Typology of Personality and Vocational Preference. Then, as the interns arrived, he
asked them to take the test to help guide them into occupations for which they may better be
suited.
123) The testing indicated that Sally prefers coordinated physical activity and that she is
basically shy, stable, and conforming. Which of the following occupations is not a potentially
good match for her?
A) mechanic
B) drill press operator
C) biologist
D) assembly-line worker
Answer: C
Diff: 3
Page Ref: 297
Topic: Personality
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124) Darrin's testing indicated that he prefers activities involving thinking, organizing, and
understanding and that he is basically analytical and curious. Which of the following occupations
is not a potentially good match for him?
A) economist
B) mathematician
C) news reporter
D) accountant
Answer: D
Diff: 3
Page Ref: 297
Topic: Personality
125) The testing suggested that Bridget prefers rule-regulated, orderly, and unambiguous
activities and could be described as conforming, efficient, and practical. Which of the following
occupations is not a potentially good match for her?
A) corporate manager
B) bank teller
C) accountant
D) teacher
Answer: D
Diff: 3
Page Ref: 297
Topic: Personality
126) Andrew prefers activities that involve helping and developing others. Consistent with the
testing, he is described as being social, friendly, and understanding. Which of the following
occupations is not a potentially good match for him?
A) social worker
B) writer
C) teacher
D) counselor
Answer: B
Diff: 3
Page Ref: 297
Topic: Personality
The Perceptive Manager (Scenario)
James has been a manager for several years. He has several employees who work directly for
him. James tries to understand these employees so that he can help them do a better job, motivate
them, and understand their needs better.
127) James watches these employees when he gets a chance, but he is only able to see them part
of the day. The rest of the time he assumes that they are working diligently because he works
diligently most of the time. James's perceptions of his employees are based on ________.
A) stereotyping
B) selectivity
C) halo effect
D) assumed similarity
Answer: D
Diff: 2
Page Ref: 300
Topic: Perceptions
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128) James feels one employee is very bright and will be a good manager in the future. This
process of using one characteristic to judge someone is called ________.
A) stereotyping
B) selectivity
C) the halo effect
D) assumed similarity
Answer: C
Diff: 3
Page Ref: 300
Topic: Perceptions
Which Is It? (Scenario)
Chris has been Linda's boss now for about six months. Recently, Linda had recommended firing
Charles, one of her own staff, for his repeated "inability to get along with others." Chris checked
with Charles's coworkers, and none of them supported Linda's contention. In addition, several of
Linda's peers had met with Chris. Word of Charles's fate was getting out, and they wanted to let
Chris know that in the past, Linda had singled out other employees for persecution. When asked
for specific problems with Charles, Linda mentioned that in addition to his attitude, he had been
late several times recently. Chris knew that Charles lived several miles away and that others had
been late due to poor weather. Chris did not know whether he should support Linda, his
manager, or hold off and not fire Charles.
129) Which factor of attribution theory was Chris concerned about when he asked Charles's
coworkers about Linda's observations about his attitude problem?
A) consistency
B) repeatedness
C) consensus
D) distinctiveness
Answer: D
Diff: 3
Page Ref: 299
Topic: Perceptions
130) What factor of attribution theory was Chris concerned about when he found out that Charles
had been late to work because of the weather?
A) consistency
B) repeatedness
C) consensus
D) distinctiveness
Answer: C
Diff: 3
Page Ref: 299
Topic: Perceptions
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131) What factor of attribution theory was Chris concerned about when Linda's peers mentioned
her history of singling out subordinates?
A) consistency
B) repeatedness
C) consensus
D) distinctiveness
Answer: A
Diff: 3
Page Ref: 299
Topic: Perceptions
The Perceptive Manager (Scenario)
James has been a manager for several years. He has several employees who work directly for
him. James tries to understand these employees so that he can help them do a better job, motivate
them, and understand their needs better.
132) One of James's employees learns how to be a good employee by watching others
performing desirable and undesirable things. ________ describes learning by watching others.
A) Stereotyping
B) Selectivity
C) Operant learning
D) Social learning
Answer: D
Diff: 2
Page Ref: 301
Topic: Learning
133) An employee has a bad habit of being late for work. James gets the employee to commit to
be on time three days one week, four days the next, and on time each day the following week.
________ is the term used to describe James's motivation technique for this employee.
A) Social learning
B) Extinction
C) Shaping behavior
D) Positive motivation
Answer: C
Diff: 2
Page Ref: 302
Topic: Learning
134) If the employee is late again for work and James tells the employee that he is docking his
pay, this is an examples of:
A) negative reinforcement
B) extinction
C) punishment
D) positive reinforcement
Answer: A
Diff: 2
Page Ref: 302
Topic: Learning
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135) In a short essay, describe the focus and goals of organizational behavior.
Answer: Organizational behavior is a field of study that is concerned specifically with the
actions of people at work. It focuses primarily on two areas, individual behavior and group
behavior. Individual behavior includes topics such as attitudes, personality, perception, learning,
and motivation. Group behavior includes norms, roles, team building, leadership, and conflict.
The goals of organizational behavior are to explain, predict, and influence behavior. Managers
need to be able to explain why employees engage in some behaviors rather than others, predict
how employees will respond to various actions the manager might take, and influence how
employees behave.
Diff: 1
Page Ref: 283
Topic: Focus and Goals of Organizational Behavior
136) In a short essay, define attitudes. Next, list and discuss the three components of attitudes
and include an example of a statement that describes each component to support your answer.
Answer: Attitudes are evaluative statements either favorable or unfavorable concerning
objects, people, or events. They reflect how an individual feels about something. When a person
says, "I like my job," he or she is expressing an attitude about work. The three components that
make up attitudes are cognition, affect, and behavior. The cognitive component of an attitude is
made up of the beliefs, opinions, knowledge, or information held by a person. The belief that
"discrimination is wrong" illustrates cognition. The affective component of an attitude is the
emotional or feeling part of an attitude. This component would be reflected by the statement, "I
don't like Jon because he discriminates against minorities." Finally, affect can lead to behavioral
outcomes. The behavioral component of an attitude refers to an intention to behave in a certain
way toward someone or something. For instance, "I might choose to avoid Jon because of my
feelings about him" is an example of the behavioral component of an attitude.
Diff: 2
Page Ref: 284
Topic: Attitudes and Job Performance
137) In a short essay, describe the Big Five Model. Then list and discuss the five personality
traits that are based on the Big Five Model of personality.
Answer: In recent years, research has shown that the five basic personality dimensions of the
Big Five Model underlie all others and encompass most of the significant variation in human
personality. The Big Five provide more than just a personality framework. Research has shown
that important relationships exist between these personality dimensions and job performance.
a. Extraversion the degree to which someone is sociable, talkative, and assertive.
b. Agreeableness the degree to which someone is good-natured, cooperative, and trusting.
c. Conscientiousness the degree to which someone is responsible, dependable, persistent, and
achievement oriented.
d. Emotional stability the degree to which someone is calm, enthusiastic, and secure (positive)
or tense, nervous, depressed, and insecure (negative).
e. Openness to experience the degree to which someone is imaginative, artistically sensitive,
and intellectual.
Diff: 2
Page Ref: 292
Topic: Personality
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138) In a short essay, list and discuss the five personality traits that have proven to be the most
powerful in explaining individual behavior in organizations.
Answer:
a. Locus of control. Some people believe that they control their own fate. Others see
themselves as pawns, believing that what happens to them in their lives is due to luck or chance.
The locus of control in the first case is internal; these people believe that they control their own
destiny. The locus of control in the second case is external; these people believe that their lives
are controlled by outside forces. Research evidence indicates that employees who rate high on
externality are less satisfied with their jobs, more alienated from the work setting, and less
involved in their jobs than are those who rate high on internality.
b. Machiavellianism. An individual who is high in Machiavellianism is pragmatic, maintains
emotional distance, and believes that ends can justify means. In jobs that require bargaining
skills or that have substantial rewards for winning, high Machs are productive. In jobs in which
ends do not justify the means or that lack absolute measures of performance, it's difficult to
predict the performance of high Machs.
c. Self-esteem. People differ in the degree to which they like or dislike themselves. This trait is
called self-esteem (SE). The research on self-esteem offers some interesting insight into
organizational behavior. For example, self-esteem is directly related to expectations for success.
High SEs believe that they possess the ability they need in order to succeed at work. Individuals
with high SEs will take more risks in job selection and are more likely to choose unconventional
jobs than are people with low SE. A number of studies confirm that high SEs are more satisfied
with their jobs than are low SEs.
d. Self-monitoring. This refers to an individual's ability to adjust his or her behavior to
external, situational factors. Individuals high in self-monitoring show considerable adaptability
in adjusting their behavior. They're highly sensitive to external cues and can behave differently
in different situations. High self-monitors are capable of presenting striking contradictions
between their public persona and their private selves. Low self-monitors cannot adjust their
behavior. They tend to display their true dispositions and attitudes in every situation, and there's
high behavioral consistency between who they are and what they do.
e. Risk taking. People differ in their willingness to take chances. Differences in the propensity
to assume or to avoid risk have been shown to affect how long it takes managers to make a
decision and how much information they require before making their choice. To maximize
organizational effectiveness, managers should try to align employee risk-taking propensity with
specific job demands. For instance, high risk-taking propensity may lead to effective
performance for a commodities trader in a brokerage firm because this type of job demands rapid
decision making. On the other hand, high risk-taking propensity might prove a major obstacle to
accountants auditing financial statements.
Diff: 3
Page Ref: 292
Topic: Personality
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139) In a short essay, list and discuss three shortcuts frequently used in judging others. Discuss
the impact these shortcuts have on the management of employees.
Answer: It's easy to judge others if we assume that they're similar to us. In assumed similarity,
the observer's perception of others is influenced more by the observer's own characteristics than
by those of the person observed. When we judge someone on the basis of our perception of a
group he or she is part of, stereotyping is the shortcut being used. When individuals form a
general impression about a person on the basis of a single characteristic, such as intelligence,
sociability, or appearance, the halo effect is the influencing factor. Managers need to recognize
that their employees react to perceptions, not to reality. So whether a manager's appraisal of an
employee is actually objective and unbiased or whether the organization's wage levels are among
the highest in the community is less relevant than what employees perceive them to be. If
individuals perceive appraisals to be biased or wage levels as low, they will behave as if those
conditions actually exist. Employees organize and interpret what they see, so there is always the
potential for perceptual distortion.
Diff: 2
Page Ref: 300
Topic: Perceptions
140) In a short essay, explain how Gen Y workers presents some unique challenges for
managers.
Answer: Conflicts and resentment can arise over issues including appearance, technology, and
management style.
There are many organizations where jeans, t-shirts, and flipflops are acceptable. However, in
other settings, employees are expected to dress a little more conventionally. But even in those
more conservative organizations, one possible solution to accommodate the more casual attire
preferred by Gen Y is to be more flexible in what's acceptable. For instance, the guideline might
be that when the person is not interacting with someone outside the organization, more casual
wear can be worn.
What about technology? This is a generation that has lived much of their lives with ATMs,
DVDs, cell phones, e-mail, instant messaging, laptops, and the Internet. When they don't have
information they need, they just simply enter a few keystrokes to get it. Having grown up with
technology, Gen Ys tend to be totally comfortable with it. They're quite content to meet virtually
to solve important problems, while bewildered baby boomers expect important problems to be
solved with an in-person meeting.
Gen Y employees have a lot to offer organizations in terms of their knowledge, passion,
and abilities. Managers, however, have to recognize and understand the behaviors
of this group in order to create an environment in which work can be accomplished
efficiently, effectively, and without disruptive conflict.
Diff: 2
Page Ref: 304
Topic: Contemporary OB Issues
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141) In a short essay, define learning and then explain the two learning theories that are relevant
to understanding how and why individual behavior occurs.
Answer: Learning is any relatively permanent change in behavior that occurs as a result of
experience. The two learning theories relevant to understanding how and why individual
behavior occurs are operant conditioning and social learning. Operant conditioning argues that
behavior is a function of its consequences. People learn to behave to get something they want or
to avoid something they don't want. Operant behavior describes voluntary or learned behavior in
contrast to reflexive or unlearned behavior. The tendency to repeat learned behavior is influenced
by the reinforcement or lack of reinforcement that happens as a result of the behavior.
Reinforcement, therefore, strengthens a behavior and increases the likelihood that it will be
repeated. The view that we can learn both through observation and direct experience is called
social learning theory. The influence of others is central to the social learning viewpoint. The
amount of influence that these models will have on an individual is determined by four
processes: attentional processes, retention, processes, motor reproduction processes, and
reinforcement processes.
Diff: 2
Page Ref: 301
Topic: Learning
142) In a short essay, explain the four ways that managers can shape employees' behavior.
Answer: There are four ways to shape behavior: positive reinforcement, negative reinforcement,
punishment, or extinction. When a behavior is followed by something pleasant, such as when a
manager praises an employee for a job well done, it's called positive reinforcement. Positive
reinforcement will increase the likelihood of the desired behavior being repeated. Rewarding a
response with the elimination or withdrawal of something unpleasant is called negative
reinforcement. A manager who says "I won't dock your pay if you start getting to work on time"
is using negative reinforcement. The desired behavior (getting to work on time) is being
encouraged by the withdrawal of something unpleasant (the employee's pay being docked). On
the other hand, punishment penalizes undesirable behavior and will eliminate it. Suspending an
employee for two days without pay for habitually coming to work late is an example of
punishment. Finally, eliminating any reinforcement that's maintaining a behavior is called
extinction. When a behavior isn't reinforced, gradually it disappears. In meetings, managers who
wish to discourage employees from continually asking irrelevant or distracting questions can
eliminate this behavior by ignoring those employees when they raise their hands to speak. Soon
this behavior should disappear. Both positive and negative reinforcement result in learning. They
strengthen a desired behavior and increase the probability that the desired behavior will be
repeated. Both punishment and extinction also result in learning; however, they weaken an
undesired behavior and tend to decrease its frequency.
Diff: 2
Page Ref: 302
Topic: Learning
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143) In a short essay, describe how managers might manage negative behavior in the workplace.
Answer: When it comes to negative behavior in the workplace, the main thing is to recognize
that it's there. Pretending that negative behavior doesn't exist or ignoring such misbehaviors will
only confuse employees about what is expected and acceptable behavior. Although there's some
debate among researchers about the preventive or responsive actions to negative behaviors, in
reality, both are needed. Preventing negative behaviors by carefully screening potential
employees for certain personality traits and responding immediately and decisively to
unacceptable negative behaviors can go a long way toward managing negative workplace
behavior. But it's also important to pay attention to employee attitudes since negativity will show
up there as well. When employees are dissatisfied with their jobs, they will respond somehow.
Diff: 1
Page Ref: 305
Topic: Contemporary OB Issues
32
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 6 Managers as Decision Makers
1) Problem identification is purely objective.
Answer: FALSE
Diff: 2
Page Ref: 121
Topic: The Decision-Making Process
2) The second step in the decision-making process is identifying a problem.
Answer: FALSE
Diff: 1
Page Ref: 122
Topic: The Decision-Making Process
3) A decision criterion defines what is relevant in a decision.
Answer: TRUE
Diff: 2
Page Ref: 122
Topic: The Decision-Making Process
4) The fourth step of the decision-making process requires the decision maker to list viable
alternatives that could resolve the problem.
Answer: TRUE
Diff: 1
Page Ref: 123
Topic: The Decision-Making Process
5) Once the alternatives have been identified, a decision maker must analyze each one.
Answer: TRUE
Diff: 2
Page Ref: 123
Topic: The Decision-Making Process
6) The step in the decision-making process that involves choosing a best alternative is termed
implementation.
Answer: FALSE
Diff: 2
Page Ref: 123
Topic: The Decision-Making Process
7) Making decisions is with the essence of management.
Answer: TRUE
Diff: 1
Page Ref: 120
Topic: Decision-Making Styles
8) Managerial decision making is assumed to be rational.
Answer: TRUE
Diff: 2
Page Ref: 124
Topic: Decision-Making Styles
9) One assumption of rationality is that we cannot know all of the alternatives.
Answer: FALSE
Diff: 3
Page Ref: 124
Topic: Decision-Making Styles
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
10) Managers tend to operate under assumptions of bounded rationality.
Answer: TRUE
Diff: 2
Page Ref: 125
Topic: Decision-Making Styles
11) Studies of the events leading up to the Challenger space shuttle disaster point to an
escalation of commitment by decision makers.
Answer: TRUE
Diff: 2
Page Ref: 126
Topic: Decision-Making Styles
12) Managers regularly use their intuition in decision making.
Answer: TRUE
Diff: 1
Page Ref: 126
Topic: Decision-Making Styles
13) Rational analysis and intuitive decision making are complementary.
Answer: TRUE
Diff: 2
Page Ref: 126
Topic: Decision-Making Styles
14) Programmed decisions tend to be repetitive and routine.
Answer: TRUE
Diff: 1
Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
15) Rules and policies are basically the same.
Answer: FALSE
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
16) A policy is an explicit statement that tells a manager what he or she ought or ought not to do.
Answer: FALSE
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
17) The solution to nonprogrammed decision making relies on procedures, rules, and policies.
Answer: FALSE
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
18) Most managerial decisions in the real world are fully nonprogrammed.
Answer: FALSE
Diff: 1
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
2
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19) The ideal situation for making decisions is low risk.
Answer: FALSE
Diff: 2
Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
20) Risk is the condition in which the decision maker is able to estimate the likelihood of certain
outcomes.
Answer: TRUE
Diff: 1
Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
21) Risk is a situation in which a decision maker has neither certainty nor reasonable probability
estimates.
Answer: FALSE
Diff: 3
Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
22) Most managers have characteristics of linear thinking style decision makers.
Answer: FALSE
Diff: 2
Page Ref: 131
Topic: Types of Decisions and Decision-Making Conditions
23) According to the boxed feature, "Managing Workforce Diversity," diverse employees tend to
make decisions faster than a homogeneous group of employees.
Answer: FALSE
Diff: 2
Page Ref: 132
Topic: Decision-Making Styles
Skill: AACSB: Multicultural and Diversity
24) The anchoring effect describes when decision makers fixate on initial information as a
starting point and then, once set, they fail to adequately adjust for subsequent information.
Answer: TRUE
Diff: 2
Page Ref: 133
Topic: Decision-Making Styles
25) The availability bias describes when decision makers try to create meaning out of random
events.
Answer: FALSE
Diff: 2
Page Ref: 134
Topic: Decision-Making Styles
26) The sunk cost error is when decision makers forget that current choices cannot correct the
past.
Answer: TRUE
Diff: 2
Page Ref: 134
Topic: Decision-Making Styles
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
27) Today's business world revolves around making decisions, usually with complete or
adequate information, and under minimal time pressure.
Answer: FALSE
Diff: 3
Page Ref: 135
Topic: Effective Decision Making in Today's World
28) Managers need to understand cultural differences to make effective decisions in today's fastmoving world.
Answer: TRUE
Diff: 2
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Topic: Effective Decision Making in Today's World
Skill: AACSB: Multicultural and Diversity
29) Highly reliable organizations (HROs) are easily tricked by their success.
Answer: FALSE
Diff: 1
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Topic: Effective Decision Making in Today's World
30) Decision making is typically described as ________, which is a view that is too simplistic.
A) deciding what is correct
B) putting preferences on paper
C) choosing among alternatives
D) processing information to completion
Answer: C
Diff: 2
Page Ref: 121
Topic: The Decision-Making Process
31) A series of eight steps that begins with identifying a problem and concludes with evaluating
the decision's effectiveness is the ________.
A) decision-making process
B) managerial process
C) maximin style
D) bounded rationality approach
Answer: A
Diff: 1
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Topic: The Decision-Making Process
32) ________ is the existence of a discrepancy between an existing and a desired state of affairs.
A) An opportunity
B) A solution
C) A weakness
D) A problem
Answer: D
Diff: 1
Page Ref: 121
Topic: The Decision-Making Process
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33) In identifying the problem, a manager ________.
A) compares the current state of affairs with where they would like to be
B) expects problems to be defined by neon lights
C) looks for discrepancies that can be postponed
D) will not act when there is pressure to make a decision
Answer: A
Diff: 1
Page Ref: 122
Topic: The Decision-Making Process
34) Which of the following statements is true concerning problem identification?
A) Problems are generally obvious.
B) A symptom and a problem are basically the same.
C) Well-trained managers generally agree on what is considered a problem.
D) The problem must be such that it exerts some type of pressure on the manager to act.
Answer: D
Diff: 2
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Topic: The Decision-Making Process
35) What is the second step in the decision-making process?
A) identifying decision criteria
B) allocating weights to the criteria
C) analyzing alternatives
D) identifying a problem
Answer: A
Diff: 2
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Topic: The Decision-Making Process
36) To determine the ________, a manager must determine what is relevant or important to
resolving the problem.
A) geocentric behavior needed
B) number of allowable alternatives
C) weighting of decision criteria
D) decision criteria
Answer: D
Diff: 2
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Topic: The Decision-Making Process
37) What is the third step in the decision-making process?
A) allocating weights to the criteria
B) analyzing the alternatives
C) selecting the best alternative
D) implementing the alternative
Answer: A
Diff: 2
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Topic: The Decision-Making Process
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
38) If all criteria in the decision making are equal, weighting the criteria ________.
A) improves decision making when large numbers of criteria are involved
B) is not needed
C) produces excellent decisions
D) improves the criteria
Answer: B
Diff: 3
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Topic: The Decision-Making Process
39) In allocating weights to the decision criteria, which of the following is helpful to remember?
A) All weights must be the same.
B) The total of the weights should sum to 1.0.
C) Every factor criterion considered, regardless of its importance, must receive some weighting.
D) Assign the most important criterion a score, and then assign weights against that standard.
Answer: D
Diff: 3
Page Ref: 122
Topic: The Decision-Making Process
40) What is the step where a decision maker wants to be creative in coming up with possible
alternative?
A) allocating weights to the criteria
B) analyzing alternatives
C) developing alternatives
D) identifying decision criteria
Answer: C
Diff: 1
Page Ref: 123
Topic: The Decision-Making Process
41) When analyzing alternatives, what becomes evident?
A) the strengths and weaknesses of each alternative
B) the weighting of alternatives
C) the list of alternatives
D) the problem
Answer: A
Diff: 1
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Topic: The Decision-Making Process
42) When developing alternatives in the decision-making process, what must a manager do?
A) list alternatives
B) evaluate alternatives
C) weight alternatives
D) implement alternatives
Answer: A
Diff: 2
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Topic: The Decision-Making Process
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43) Selecting an alternative in the decision-making process is accomplished by ________.
A) choosing the alternative with the highest score
B) choosing the one you like best
C) selecting the alternative that has the lowest price
D) selecting the alternative that is the most reliable
Answer: A
Diff: 1
Page Ref: 123
Topic: The Decision-Making Process
44) In Step 6 of the decision-making process, each alternative is evaluated by appraising it
against the ________.
A) subjective goals of the decision maker
B) criteria
C) assessed values
D) implementation strategy
Answer: B
Diff: 2
Page Ref: 123
Topic: The Decision-Making Process
45) ________ includes conveying a decision to those affected and getting their commitment to it.
A) Selecting an alternative
B) Evaluating the decision effectiveness
C) Implementing the alternatives
D) Analyzing alternatives
Answer: C
Diff: 2
Page Ref: 123
Topic: The Decision-Making Process
46) Which of the following is important in effectively implementing the chosen alternative in the
decision-making process?
A) getting upper-management support
B) double-checking your analysis for potential errors
C) allowing those impacted by the outcome to participate in the process
D) ignoring criticism concerning your chosen alternative
Answer: C
Diff: 2
Page Ref: 123-124
Topic: The Decision-Making Process
47) The final step in the decision-making process is to ________.
A) pick the criteria for the next decision
B) reevaluate the weightings of the criteria until they indicate the correct outcome
C) evaluate the outcome of the decision
D) reassign the ratings on the criteria to find different outcomes
Answer: C
Diff: 2
Page Ref: 124
Topic: The Decision-Making Process
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
48) Which of the following is important to remember in evaluating the effectiveness of the
decision-making process?
A) You should ignore criticism concerning the decision-making process.
B) You may have to start the whole decision process over.
C) You will have to restart the decision-making process if the decision is less than 50 percent
effective.
D) Ninety percent of problems with decision making occur in the implementation step.
Answer: B
Diff: 3
Page Ref: 124
Topic: The Decision-Making Process
49) Managers are assumed to be ________; they make consistent, value-maximizing choices
within specified constraints.
A) rational
B) leaders
C) organized
D) satisficers
Answer: A
Diff: 1
Page Ref: 124
Topic: Decision-Making Styles
50) It is assumed that a perfectly rational decision maker ________.
A) does not follow rational assumptions
B) does not consider value maximizing as an objective
C) offers inconsistent decisions
D) would be objective and logical
Answer: D
Diff: 2
Page Ref: 124
Topic: Decision-Making Styles
51) Managers can make rational decisions if ________.
A) the problem is ambiguous
B) the goals are unclear
C) the alternatives are limited
D) time constraints exist
Answer: C
Diff: 3
Page Ref: 124
Topic: Decision-Making Styles
52) Which of the following is not a valid assumption about rationality?
A) The problem is clear and unambiguous.
B) A single, well-defined goal is to be achieved.
C) Preferences are clear.
D) Preferences are constantly changing.
Answer: D
Diff: 3
Page Ref: 124
Topic: Decision-Making Styles
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53) When managers circumvent the rational decision-making model and find ways to satisfice,
they are following the concept of ________.
A) jurisprudence
B) bounded rationality
C) least-squared exemptions
D) self-motivated decisions
Answer: B
Diff: 2
Page Ref: 125
Topic: Decision-Making Styles
54) Because managers can't possibly analyze all information on all alternatives, managers
________, rather than ________.
A) maximize; satisfice
B) maximize; minimize
C) satisfice; minimize
D) satisfice; maximize
Answer: D
Diff: 2
Page Ref: 125
Topic: Decision-Making Styles
55) The type of decision making in which the solution is considered "good enough" is known as
________.
A) intuition
B) satisfying
C) maximizing
D) satisficing
Answer: D
Diff: 2
Page Ref: 125
Topic: Decision-Making Styles
56) When a decision maker chooses an alternative under perfect rationality, she ________ her
decision, whereas under bounded rationality she chooses a ________ decision.
A) minimizes; satisficing
B) satisfices; maximizing
C) maximizes; satisficing
D) maximizes; minimizing
Answer: C
Diff: 3
Page Ref: 125
Topic: Decision-Making Styles
57) An increased commitment to a previous decision despite evidence that it may have been
wrong is referred to as ________.
A) economies of commitment
B) escalation of commitment
C) dimensional commitment
D) expansion of commitment
Answer: B
Diff: 2
Page Ref: 126
Topic: Decision-Making Styles
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58) Intuitive decision making is ________.
A) not utilized in organizations
B) a conscious process based on accumulated judgment
C) making decisions based on experience, feelings, and accumulated judgment
D) important in supporting escalation of commitment
Answer: C
Diff: 2
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Topic: Decision-Making Styles
59) In studying intuitive decision making, researchers have found that ________.
A) managers do not make decisions based on feelings or emotions
B) managers use data from their subconscious mind to help make their decisions
C) rational thinking always works better than intuitive
D) accumulated experience does not support intuitive decisions
Answer: B
Diff: 2
Page Ref: 126
Topic: Decision-Making Styles
60) All of the following are aspects of intuition except ________.
A) experienced-based decisions
B) affect-initiated decisions
C) cognitive-based decisions
D) programmed decisions
Answer: D
Diff: 1
Page Ref: 127
Topic: Decision-Making Styles
61) ________ are straightforward, familiar, and easily defined.
A) Unstructured problems
B) Structured problems
C) Unique problems
D) Nonprogrammed problems
Answer: B
Diff: 2
Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
62) Structured problems align well with which type of decision making?
A) programmed
B) satisficing
C) intuition
D) gut feeling
Answer: A
Diff: 2
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Topic: Types of Decisions and Decision-Making Conditions
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
63) ________ decision making is relatively simple and tends to rely heavily on previous
solutions.
A) Nonprogrammed
B) Linear
C) Satisficing
D) Programmed
Answer: D
Diff: 2
Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
64) A procedure ________.
A) is an explicit statement detailing exactly how to deal with a decision
B) is a series of interrelated sequential steps to respond to a structured problem
C) is a set of guidelines that channel a manager's thinking in dealing with a problem
D) allows a manager to use broad decision-making authority
Answer: B
Diff: 2
Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
65) A ________ is an explicit statement that tells a manager what he or she can or cannot do.
A) procedure
B) policy
C) rule
D) solution
Answer: C
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
66) A policy ________.
A) typically contains an ambiguous term
B) is used frequently when a manager faces a structured problem
C) allows little discretion on the part of the manager
D) offers strict rules as to how a problem should be solved
Answer: A
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
67) What is a difference between a policy and a rule?
A) A policy establishes parameters.
B) A rule establishes parameters.
C) A policy is more explicit.
D) A rule is more ambiguous.
Answer: A
Diff: 2
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Topic: Types of Decisions and Decision-Making Conditions
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
68) A ________ typically contains an ambiguous term that leaves interpretation up to the
decision maker.
A) system
B) rule
C) solution
D) policy
Answer: D
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
69) A business school's statement that it "strives for productive relationships with local
organizations" is an example of a ________.
A) rule
B) policy
C) procedure
D) commitment
Answer: B
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
70) Unstructured problems ________.
A) are easily solved
B) present familiar circumstances
C) force managers to deal with incomplete or ambiguous information
D) are routine
Answer: C
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
71) Nonprogrammed decisions are best described as ________.
A) recurring, but difficult to make
B) very similar to problems in other areas of the organization
C) requiring more aggressive action on the decision maker's thought processes
D) unique and nonrecurring
Answer: D
Diff: 2
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Topic: Types of Decisions and Decision-Making Conditions
72) When problems are ________, managers must rely on ________ in order to develop unique
solutions.
A) structured; nonprogrammed decision making
B) structured; pure intuition
C) unstructured; nonprogrammed decision making
D) unstructured; programmed decision making
Answer: C
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
73) Lower-level managers typically confront what type of decision making?
A) unique
B) nonroutine
C) programmed
D) nonprogrammed
Answer: C
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
74) Which of the following is likely to make the most programmed decisions?
A) the CEO of PepsiCo
B) the vice president of General Motors Cadillac Division
C) the head of the Minute Maid Division at Coca-Cola
D) the manager of the local McDonald's
Answer: D
Diff: 1
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Topic: Types of Decisions and Decision-Making Conditions
75) ________ is a situation in which a manager can make accurate decisions because the
outcome of every alternative is known.
A) Certainty
B) Risk
C) Uncertainty
D) Maximax
E) Maximin
Answer: A
Diff: 1
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Topic: Types of Decisions and Decision-Making Conditions
76) If an individual knows the price of three similar cars at different dealerships, he or she is
operating under what type of decision-making condition?
A) risk
B) uncertainty
C) certainty
D) factual
Answer: C
Diff: 1
Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
77) A retail clothing store manager who estimates how much to order for the current spring
season based on last spring's outcomes is operating under what kind of decision-making
condition?
A) seasonal
B) risk
C) uncertainty
D) certainty
Answer: B
Diff: 3
Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
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78) ________ is a situation in which a decision maker has neither certainty nor reasonable
probability estimates available.
A) Certainty
B) Risk
C) Uncertainty
D) Maximax
Answer: C
Diff: 1
Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
79) Nonprogrammed decisions are typically made under a condition of ________.
A) certainty
B) low levels of risk
C) uncertainty
D) reliability
Answer: C
Diff: 3
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Topic: Types of Decisions and Decision-Making Conditions
80) A person at a horse racetrack who bets all of his or her money on the odds-based long shot to
"win" (rather than "place" or "show") is making what kind of choice?
A) maximax
B) maximin
C) minimax
D) minimin
Answer: A
Diff: 2
Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
81) What best describes the psychological orientation of an individual making a "maximax"
choice?
A) optimist
B) realist
C) pessimist
D) satisficer
Answer: A
Diff: 2
Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
82) Optimistic managers could be expected to utilize their maximax orientation when they
________.
A) maximize the maximum payoff
B) maximize the minimum payoff
C) minimize the maximum regret
D) minimize the minimum regret
Answer: A
Diff: 1
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Topic: Types of Decisions and Decision-Making Conditions
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
83) What is the psychological orientation of a decision maker who makes a "maximin" choice?
A) optimist
B) realist
C) pessimist
D) satisficer
Answer: C
Diff: 2
Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
84) Which of the following best describes "maximizing the minimum possible payoff"?
A) maximax
B) maximin
C) minimax
D) minimin
Answer: B
Diff: 2
Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
85) A manager who desires to minimize his or her maximim "regret" will opt for a ________
choice.
A) maximax
B) maximin
C) minimax
D) minimin
Answer: C
Diff: 2
Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
86) Many managers use ________ or rules of thumb to simplify their decision making.
A) heuristics
B) biases
C) errors
D) habits
Answer: A
Diff: 1
Page Ref: 133
Topic: Decision-Making Styles
87) When decision makers tend to think they know more than they do or hold unrealistically
positive views of themselves and their performance, they are exhibiting ________.
A) self-serving bias
B) the anchoring effect
C) immediate gratification bias
D) overconfidence bias
Answer: D
Diff: 1
Page Ref: 133
Topic: Decision-Making Styles
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88) When decision makers seek out information that reaffirms their past choices and discount
information that contradicts past judgments, they are exhibiting ________.
A) availability bias
B) the anchoring effect
C) self-serving bias
D) confirmation bias
Answer: D
Diff: 2
Page Ref: 133
Topic: Decision-Making Styles
89) When decision makers assess the likelihood of an event based on how closely it resembles
other events or sets of events, they are using ________.
A) availability bias
B) framing bias
C) selective perception bias
D) representation bias
Answer: D
Diff: 2
Page Ref: 134
Topic: Decision-Making Styles
90) What is the tendency for decision makers to falsely believe that they would have accurately
predicted the outcome of an event once that outcome is actually known?
A) the hindsight bias
B) the sunk costs error
C) the randomness bias
D) the selective perception bias
Answer: A
Diff: 2
Page Ref: 134
Topic: Decision-Making Styles
91) To make effective decisions in today's fast-moving world, managers need to ________.
A) use the five-stage decision-making process
B) know when it is time to call it quits
C) ignore cultural differences
D) identify their style of decision making
Answer: B
Diff: 1
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Topic: Effective Decision Making in Today's World
92) What is a characteristic that the experts say an effective decision-making process has?
A) It is inconsistent.
B) It acknowledges only objective thinking.
C) It focuses on all factors even those that do not seem important.
D) It requires only as much information and analysis as is necessary.
Answer: D
Diff: 2
Page Ref: 136
Topic: Effective Decision Making in Today's World
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93) What term is used by Navy aviators to describe a gut feeling that something isn't right?
A) leemers
B) the creeps
C) uneasiness
D) regret
Answer: A
Diff: 3
Page Ref: 136
Topic: Effective Decision Making in Today's World
94) Managers of highly reliable organizations (HROs) get the input of ________ and let them
make decisions.
A) CEOs
B) frontline workers
C) customers
D) suppliers
Answer: B
Diff: 1
Page Ref: 136
Topic: Effective Decision Making in Today's World
95) When highly reliable organizations (HROs) face complexity, they ________.
A) try to simplify data
B) aim for deeper understanding of the situation
C) defer to the experts
D) act, then think
Answer: B
Diff: 2
Page Ref: 136
Topic: Effective Decision Making in Today's World
Decisions, Decisions (Scenario)
Sondra needed help. Her insurance company's rapid growth was necessitating making some
changes, but what changes? Should they add to the existing information system or should they
buy a new system? She was given the responsibility of analyzing the company's present
information system and deciding what the company should do that would give them plenty of
room. She was confused and needed help in making the correct decision.
96) According to the decision-making process, the first step Sondra should take is to ________.
A) analyze alternative solutions
B) identify decision criteria
C) evaluate her decision's effectiveness
D) identify the problem
Answer: D
Diff: 2
Page Ref: 121
Topic: The Decision-Making Process
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
97) According to the decision-making process, the second step Sondra should take is to
________.
A) analyze alternative solutions
B) identify decision criteria
C) evaluate her decision's effectiveness
D) allocate weights to the criteria
Answer: B
Diff: 2
Page Ref: 121
Topic: The Decision-Making Process
98) Allocating weights to the criteria is the step in the decision-making process that occurs
between identifying the decision criteria and ________.
A) developing the alternatives
B) selecting alternatives
C) implementing the alternative
D) identifying the problem
Answer: A
Diff: 3
Page Ref: 121
Topic: The Decision-Making Process
99) When Sondra is conveying her decision to those affected and getting their commitment to it,
she is performing which step in the decision-making process?
A) analyzing alternative solutions
B) selecting alternatives
C) implementing the alternative
D) identifying the problem
Answer: C
Diff: 2 Page Ref: 121
Topic: The Decision-Making Process
100) The very last step Sondra should take, according to the decision-making process, is to
________.
A) analyze alternative solutions
B) select alternatives
C) implement the alternative
D) evaluate the decision's effectiveness
Answer: D
Diff: 1
Page Ref: 121
Topic: The Decision-Making Process
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
The Car (Scenario)
Colleen is a student, and her older brother has loaned her an old car. The car is in need of several
repairs before she will feel comfortable driving it.
101) Colleen needs a vehicle, but she has to decide if the vehicle is worth repairing. She is facing
a(n) ________, a discrepancy between an existing and a desired state of affairs.
A) alternative
B) weighted problem set
C) problem
D) certainty avoidance situation
Answer: C
Diff: 2
Page Ref: 121
Topic: The Decision-Making Process
102) In talking with an automotive repair person, Colleen needs to prioritize the repairs. Her first
concern is safety of the vehicle. This step in the decision-making process is called ________.
A) weighting the decision criteria
B) analyzing of alternatives
C) identifying decision criteria
D) selecting an alternative
Answer: C
Diff: 2
Page Ref: 122
Topic: The Decision-Making Process
103) Colleen decides to have all of the problems fixed on the car. She assumes that the repair
person has found all the problems and that there will be no problem correcting the imperfections
within a specified budget. This is an example of a ________ decision.
A) parochial
B) irrational
C) ethical
D) rational
Answer: D
Diff: 3
Page Ref: 124
Topic: Managers Making Decisions
104) Colleen's brother has a different view of the repairs. He assumes that the repair person is
using the best information available, but there may be other unexpected repairs that might
surface and that a higher budget might be more reasonable. He is using ________.
A) rational decision making
B) risk avoidance
C) bounded rationality
D) Stage 4 decision making
Answer: C
Diff: 3
Page Ref: 125
Topic: Managers Making Decisions
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
105) Colleen's brother feels the car is worth repairing because he has owned several cars made
by the same manufacturer as this car, and he has driven this car for several years. He is using
________ to determine that the car has value despite its need of repair.
A) intuitive decision making
B) selective coordination of thought processes
C) sunk costs
D) return on investment
Answer: A
Diff: 3
Page Ref: 126
Topic: Managers Making Decisions
The First Job (Scenario)
Upon graduation, you search for a job with the university's job placement center. Although you
have studied and prepared to work in an advertising agency, the first job that you are offered is a
supervisor in a manufacturing company working the afternoon shift from 3:00 P.M. until 11:00
P.M.
106) If you had made a larger search using the Internet and other employment search processes,
you might have been able to find more employment opportunities. This would have been a more
________ decision-making process.
A) nonprogrammable
B) uncertain
C) risky
D) perfectly rational
Answer: D
Diff: 2
Page Ref: 124
Topic: Managers Making Decisions
107) Under bounded rationality, you would be expected to search for a job by ________.
A) looking at all the opportunities that can be analyzed in the time available
B) looking at all the opportunities available
C) looking "outside the box" in your search
D) analyzing all the opportunities until you find the perfect job
Answer: A
Diff: 3
Page Ref: 125
Topic: Managers Making Decisions
108) If you use a shortened process of searching for a job, it is likely that you ________ rather
than maximized in your decision process.
A) minimized
B) rationalized
C) satisficed
D) agreed
Answer: C
Diff: 3
Page Ref: 125
Topic: Managers Making Decisions
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
109) During your job search, you depend on ________ decision making by making your decision
based on accumulated judgment and experience.
A) experiential
B) legal
C) intuitive
D) formidable
Answer: C
Diff: 3
Page Ref: 126
Topic: Managers Making Decisions
Is the Picture Clear? (Scenario)
Sharon was the regional manager of a large cable television company. She faced many problems
and decisions daily, such as how to price each market, who to hire, what kind of technology she
should purchase, and how she should handle the increasing customer complaints. She needed
some help sorting these issues out.
110) When a customer calls and requests a refund for a partial month's usage of cable, the fact
that such situations are routine and most likely have a standard response would make the
response a ________ decision.
A) standard
B) routine
C) policy
D) programmed
Answer: D
Diff: 2
Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
111) Sometimes Sharon follows a ________, a series of interrelated sequential steps for
responding to a structured problem.
A) rule
B) policy
C) procedure
D) suggestion
Answer: C
Diff: 2
Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
112) Sometimes Sharon instructs her local managers to follow ________ when confronted with
problem situations. These establish parameters for the manager making the decision rather than
specifically stating what should or should not be done.
A) rules
B) procedures
C) policies
D) orders
Answer: C
Diff: 2
Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
113) Unfortunately, Sharon also faces issues containing information that is ambiguous or
incomplete, such as what kind of technology to purchase. These are known as ________
problems.
A) unstructured
B) variable
C) random
D) hit-and-miss
Answer: A
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
Managing Your Career (Scenario)
Michelle has a new job and is learning to perform the tasks assigned to her. Different situations
demand different decision-making processes.
114) Michelle finds a situation that instructs her in specific, interrelated, sequential steps to
respond to a problem. This is referred to as a ________.
A) rule
B) policy
C) broad guideline
D) procedure
Answer: D
Diff: 2
Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
115) Michelle finds a company directive that specifically restricts her from taking certain
actions. This is a ________.
A) rule
B) policy
C) broad guideline
D) procedure
Answer: A
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
116) As she learns the general guidelines of the job, Michelle is given more decision-making
authority. The guidelines establish parameters for decision making and are referred as a
________.
A) rule
B) policy
C) broad guideline
D) procedure
Answer: B
Diff: 2
Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
22
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117) Michelle eventually finds a problem that has no cut-and-dry solution. The problem is
unique and will never occur again. This problem is referred to as ________.
A) flexible
B) programmed
C) adaptable
D) nonprogrammed
Answer: D
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
Decision-Making Conditions (Scenario)
Sandy Jo is the manager for TrucksRUs, a medium-sized hauling service located in the
Southeast. She is responsible for scheduling trucks, initiating new routes, and staffing both
existing and new routes. She is currently struggling with existing information about the
profitability of existing and future truck routes.
118) Sandy Jo can make accurate decisions if she is willing to pay $5,000 for research about the
profitability of various truck routes. If she pays for the research, she believes that she is operating
under a condition of ________.
A) certainty
B) risk
C) uncertainty
D) maximax
Answer: A
Diff: 2
Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
119) Joe, Sandy Jo's best driver, tells her that he believes he can estimate that there is a 75
percent probability that they can get the business of Pork Brothers, Inc., if they initiate a truck
route through rural North Carolina. Joe is operating under a condition of ________.
A) certainty
B) risk
C) uncertainty
D) maximax
Answer: B
Diff: 2
Page Ref: 129
Topic: Types of Decisions and Decision-Making Conditions
120) Sandy Jo knows that she is operating in an uncertain environment. She is basically an
optimist, and we would, therefore, expect her to follow a ________ strategy.
A) certainty
B) risk
C) uncertainty
D) maximax
Answer: D
Diff: 2
Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
23
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121) Sandy Jo knows that she is operating in an uncertain environment. She is basically a
pessimist, and we would, therefore, expect her to follow a ________ strategy.
A) certainty
B) risk
C) minimax
D) maximin
Answer: D
Diff: 2
Page Ref: 130
Topic: Types of Decisions and Decision-Making Conditions
122) Sandy Jo wishes to minimize her regret and will probably opt for a ________ strategy.
A) certainty
B) risk
C) minimax
D) maximax
Answer: C
Diff: 2
Page Ref: 131
Topic: Types of Decisions and Decision-Making Conditions
24
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
123) In a short essay, list and discuss the eight steps in the decision-making process.
Answer:
a. Step 1: Identifying a problem the decision-making process begins with the existence of a
problem or a discrepancy between an existing and a desired state of affairs. However, a
discrepancy without pressure to take action becomes a problem that can be postponed.
b. Step 2: Identify decision criteria once the manager has identified a problem that needs
attention, the decision criteria important to resolving the problem must be identified. That is,
managers must determine what's relevant in making a decision.
c. Step 3: Allocating weights to the criteria at this step, the decision maker must weigh the
items in order to give them the correct priority in the decision. A simple approach is to give the
most important criterion a weight of 10 and then assign weights to the rest against that standard.
d. Step 4: Developing alternatives the fourth step requires the decision maker to list the viable
alternatives that could resolve the problem. No attempt is made in this step to evaluate the
alternative, only to list them.
e. Step 5: Analyzing alternatives once the alternatives have been identified, the decision maker
must critically analyze each one. From this comparison, the strengths and weaknesses of each
alternative become evident.
f. Step 6: Selecting an alternative the sixth step is the important act of choosing the best
alternative from among those considered. All the pertinent criteria in the decision have now been
determined and weighted, and the alternatives have been identified and analyzed.
g. Step 7: Implementing the alternative implementation involves conveying the decision to
those affected by it and getting their commitment to it. If the people who must carry out a
decision participate in the process, they're more likely to enthusiastically support the outcome
than if they are just told what to do.
h. Step 8: Evaluating decision effectiveness the last step in the decision-making process
involves appraising the outcome of the decision to see if the problem has been resolved. Did the
alternative chosen and implemented accomplish the desired result? If not, the manager may
consider returning to a previous step or may even consider starting the whole decision process
over.
Diff: 3
Page Ref: 121
Topic: The Decision-Making Process
124) In a short essay, discuss the assumptions of rationality and the validity of those
assumptions.
Answer: A decision maker who was perfectly rational would be fully objective and logical. He
or she would carefully define a problem and would have a clear and specific goal. Moreover,
making decisions using rationality would consistently lead toward selecting the alternative that
maximizes the likelihood of achieving that goal. The assumptions of rationality apply to any
decision. Rational managerial decision making assumes that decisions are made in the best
economic interests of the organization. That is, the decision maker is assumed to be maximizing
the organization's interests, not his or her own interests. Managerial decision making can follow
rational assumptions if the following conditions are met: the manager is faced with a simple
problem in which the goals are clear and the alternatives limited; the time pressures are minimal;
the cost of seeking out and evaluating alternatives is low; the organizational culture supports
innovation and risk taking; and outcomes are relatively concrete and measurable. However, most
decisions that managers face in the real world don't meet all of those tests.
Diff: 2
Page Ref: 124
Topic: Managers Making Decisions
25
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125) In a short essay, discuss bounded rationality and satisficing.
Answer: Despite the limits to perfect rationality, managers are expected to follow a rational
process when making decisions. However, certain aspects of the decision-making process are not
realistic as managers make decisions. Instead, managers tend to operate under assumptions of
bounded rationality; that is, they behave rationally within the parameters of a simplified
decision-making process that is limited by an individual's ability to process information.
Managers satisfice, rather than maximize, because they can't possibly analyze all the information
on all of the alternatives. That is, they accept solutions that are "good enough." They are being
rational within the limits of their information-processing ability.
Diff: 1
Page Ref: 125
Topic: Managers Making Decisions
126) In a short essay, discuss the difference between structured and unstructured problems.
Include specific examples of each type of problem to support your answer. Next, discuss the type
of decisions that would be used to address each of these problems.
Answer: a. Structured problems the goal of the decision maker is clear, the problem is
familiar, and information about the problem is easily defined and complete. Examples of these
types of problems might include a customer wanting to return a purchase to a retail store, a
supplier being late with an important delivery, a news team responding to an unexpected and
fast-breaking event, or a college's handling of a student wanting to drop a class. Such situations
are called structured problems because they are straightforward, familiar, and easily defined
problems. In handling these problem situations, the manager uses a programmed decision.
Decisions are programmed to the extent that they are repetitive and routine and to the extent that
a definite approach has been worked out for handling them. Since the problem is well structured,
the manager doesn't have to go to the trouble and expense of going through an involved decision
progress. Programmed decision making is relatively simple and tends to rely heavily on previous
solutions.
b. Unstructured problems these problems are new or unusual, and information for them is
ambiguous or incomplete. For example, the selection of an architect to design a new corporate
manufacturing facility in Bangkok is an example of an unstructured problem. When problems are
unstructured, managers must rely on nonprogrammed decision making in order to develop
unique solutions. Nonprogrammed decisions are unique and nonrecurring. When a manager
confronts an unstructured problem or one that is unique, there is no cut-and-dry solution. It
requires a custom-made response through nonprogrammed decision making.
Diff: 3
Page Ref: 127
Topic: Types of Decisions and Decision-Making Conditions
26
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
127) In a short essay, discuss the differences among a procedure, a rule, and a policy. Include
specific examples of each to support your answer.
Answer: a. A procedure is a series of interrelated sequential steps that a manager can use for
responding to a structured problem. The only real difficulty is in identifying the problem. Once
the problem is clear, so is the procedure. For instance, a purchasing manager receives a request
from the sales department for 15 PalmPilots for use by the company's customer service
representatives. The purchasing manager knows that there is a definite procedure for handling
this decision. The decision-making process in this case is merely executing a simple series of
sequential steps.
b. A rule is an explicit statement that tells a manager what he or she can or cannot do. Managers
frequently use rules when they confront a structured problem because they are simple to follow
and ensure consistency. For example, rules about lateness and absenteeism permit supervisors to
make disciplinary decisions rapidly and with a relatively high degree of fairness.
c. A policy provides guidelines to channel a manager's thinking in a specific direction. In
contrast to a rule, a policy establishes parameters for the decision maker rather than specifically
stating what should or should not be done. Policies typically contain an ambiguous term that
leaves interpretation up to the decision maker. For instance, each of the following is a policy
statement: "The customer always comes first and should always be satisfied," "We promote from
within, whenever possible," and "Employee wages shall be competitive within community
standards."
Diff: 2
Page Ref: 128
Topic: Types of Decisions and Decision-Making Conditions
27
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
128) In a short essay, discuss six of the twelve common decision errors and biases that managers
make.
Answer: a. When decision makers tend to think they know more than they do or hold
unrealistically positive views of themselves and their performance, they're exhibiting the
overconfidence bias.
b. The immediate gratification bias describes decision makers who tend to want immediate
rewards and to avoid immediate costs. For these individuals, decision choices that provide quick
payoffs are more appealing than those in the future.
c. The anchoring effect describes when decision makers fixate on initial information as a
starting point and then, once set, fail to adequately adjust for subsequent information. First
impressions, ideas, prices, and estimates carry unwarranted weight relative to information
received later.
d. When decision makers selectively organize and interpret events based on their biased
perceptions, they're using the selective perception bias. This influences the information they pay
attention to, the problems they identify, and the alternatives they develop.
e. Decision makers who seek out information that reaffirms their past choices and discount
information that contradicts past judgments exhibit the confirmation bias. These people tend to
accept at face value information that confirms their preconceived views and are critical and
skeptical of information that challenges these views.
f. The framing bias is when decision makers select and highlight certain aspects of a situation
while excluding others. By drawing attention to specific aspects of a situation and highlighting
them, while at the same time downplaying or omitting other aspects, they distort what they see
and create incorrect reference points.
g. The availability bias is when decisions makers tend to remember events that are the most
recent and vivid in their memory. The result is that it distorts their ability to recall events in an
objective manner and results in distorted judgments and probability estimates.
h. When decision makers assess the likelihood of an event based on how closely it resembles
other events or sets of events, that's the representation bias. Managers exhibiting this bias draw
analogies and see identical situations where they don't exist.
i. The randomness bias describes when decision makers try to create meaning out of random
events. They do this because most decision makers have difficulty dealing with chance even
though random events happen to everyone and there's nothing that can be done to predict them.
j. The sunk costs error is when decision makers forget that current choices can't correct the
past. They incorrectly fixate on past expenditures of time, money, or effort in assessing choices
rather than on future consequences. Instead of ignoring sunk costs, they can't forget them.
k. Decision makers who are quick to take credit for their successes and to blame failure on
outside factors are exhibiting the self-serving bias.
l. Finally, the hindsight bias is the tendency for decision makers to falsely believe that they
would have accurately predicted the outcome of an event once that outcome is actually known.
Diff: 3
Page Ref: 133
Topic: Decision-Making Styles
28
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129) In a short essay, identify and discuss the five habits shared by highly reliable organizations
(HROs).
Answer: Karl Weick, an organizational psychologist identifies five shared habits of highly
reliable organizations. First, they are not tricked by their success. HROs are preoccupied with
their failures. They are alert to the smallest deviations and react early and quickly to anything
that does not fit with their expectations. Another characteristic of HROs is that they defer to the
experts on the front line. Frontline workers those who interact day in and day out with
customers, products, suppliers, an so forth have firsthand knowledge of what can and cannot be
done, what will and will not work. Get their input. Let them make decisions. Next, HROs let
unexpected circumstances provide the solution. The fourth habit of HROs is that they embrace
complexity. Because business is complex, these organizations aim for deeper understanding of
the situation. They ask "why" and keep asking why as they probe more deeply into the causes of
the problem and possible solutions. Finally, HROs anticipate, but alto anticipate their limits.
These organizations do try to anticipate as much as possible, but they recognize that they can't
anticipate everything. As Weick says, they don't "think, then act." They think by acting. By
actually doing things, you'll find out what works and what doesn't.
Diff: 3
Page Ref: 136
Topic: Types of Decisions and Decision-Making Conditions
29
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 9 Organizational Structure and Design
1) Organizational design is the organization's formal framework by which job tasks are divided,
grouped, and coordinated.
Answer: FALSE
Diff: 3
Page Ref: 185
Topic: Designing Organizational Structure
2) Organizational structure is the degree to which tasks in an organization are divided into
separate jobs.
Answer: FALSE
Diff: 2
Page Ref: 185
Topic: Designing Organizational Structure
3) The concept of work specialization can be traced back a couple of centuries to Adam Smith's
discussion of division of labor.
Answer: TRUE
Diff: 2
Page Ref: 185
Topic: Designing Organizational Structure
4) Today, most managers see work specialization as a source of ever-increasing productivity.
Answer: FALSE
Diff: 2
Page Ref: 185
Topic: Designing Organizational Structure
5) Grouping jobs on the basis of product or customer flow is termed customer
departmentalization.
Answer: FALSE
Diff: 2
Page Ref: 186
Topic: Designing Organizational Structure
6) When decisions tend to be made at lower levels in an organization, the organization is said to
be decentralized.
Answer: TRUE
Diff: 2
Page Ref: 188
Topic: Designing Organizational Structure
7) The concept of centralization-decentralization is absolute.
Answer: FALSE
Diff: 2
Page Ref: 188
Topic: Designing Organizational Structure
8) When effective implementation of company strategies depends on managers having
involvement and flexibility to make decisions, the company is probably more decentralized.
Answer: TRUE
Diff: 2
Page Ref: 189
Topic: Designing Organizational Structure
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
9) A term for increased decentralization is employee empowerment, which is giving employees
more authority to make decisions.
Answer: TRUE
Diff: 1
Page Ref: 188
Topic: Designing Organizational Structure
10) Many of today's organizations are extremely reliant on strict rules and standardization to
guide and regulate employee behavior.
Answer: FALSE
Diff: 2
Page Ref: 190
Topic: Designing Organizational Structure
11) An organic organization tends to be characterized by high specialization, extensive
departmentalization, narrow spans of control, high formalization, a limited information network,
and little participation in decision making by low-level employees.
Answer: FALSE
Diff: 2
Page Ref: 191
Topic: Mechanistic and Organic Structures
12) An organic organization would likely be very flexible.
Answer: TRUE
Diff: 2
Page Ref: 191
Topic: Mechanistic and Organic Structures
13) Innovators need the efficiency, stability, and tight controls of the mechanistic structure.
Answer: FALSE
Diff: 1
Page Ref: 191
Topic: Mechanistic and Organic Structures
14) The relationship between organizational size and structure tends to be linear.
Answer: FALSE
Diff: 3
Page Ref: 191
Topic: Mechanistic and Organic Structures
15) Joan Woodward attempted to view organizational structure from a technological perspective.
Answer: TRUE
Diff: 2
Page Ref: 192
Topic: Mechanistic and Organic Structures
Skill: AACSB: Technology
16) Woodward's findings support that there is "one best way" to organize a manufacturing firm.
Answer: FALSE
Diff: 2
Page Ref: 192
Topic: Mechanistic and Organic Structures
Skill: AACSB: Technology
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
17) Since Woodward's initial work, numerous studies have demonstrated that organizations
adapt their structures to their technology.
Answer: TRUE
Diff: 2
Page Ref: 192
Topic: Mechanistic and Organic Structures
Skill: AACSB: Technology
18) The strength of the functional structure is that it focuses on results.
Answer: FALSE
Diff: 2
Page Ref: 193
Topic: Common Organizational Designs
19) A simple structure is an organizational design that groups similar or related occupational
specialties together.
Answer: FALSE
Diff: 1
Page Ref: 193
Topic: Common Organizational Designs
20) In divisional structures, the parent corporation typically acts as an external overseer to
coordinate and control the various divisions.
Answer: TRUE
Diff: 1 Page Ref: 193
Topic: Common Organizational Designs
21) Employee empowerment is a crucial aspect of team structure because there is no line of
managerial authority from top to bottom.
Answer: TRUE
Diff: 2
Page Ref: 194
Topic: Common Organizational Designs
22) A matrix design creates a dual chain of demand.
Answer: TRUE
Diff: 1
Page Ref: 195
Topic: Common Organizational Designs
23) Project structures tend to be rigid and inflexible organizational designs.
Answer: FALSE
Diff: 1
Page Ref: 195
Topic: Common Organizational Designs
24) Internal boundaries are boundaries that separate the organization from its customers,
suppliers, and other stakeholders.
Answer: FALSE
Diff: 2
Page Ref: 195
Topic: Common Organizational Designs
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
25) To minimize or eliminate boundaries, managers might use virtual or network structural
designs.
Answer: TRUE
Diff: 1
Page Ref: 196
Topic: Common Organizational Designs
26) The inspiration of the virtual organization structural approach is the film industry.
Answer: TRUE
Diff: 2
Page Ref: 196
Topic: Common Organizational Designs
27) Many organizational design concepts are not applicable to twenty-first century companies.
Answer: TRUE
Diff: 2
Page Ref: 196
Topic: Common Organizational Designs
28) It is critical for members in a virtual organization to collaborate on work activities
throughout the entire organization.
Answer: FALSE
Diff: 2
Page Ref: 195
Topic: Common Organizational Designs
29) ________ is the formal arrangement of jobs within an organization.
A) Departmentalization
B) Organizational design
C) Organizational structure
D) Work specialization
Answer: C
Diff: 1
Page Ref: 185
Topic: Designing Organizational Structure
30) Organizational design is based on decisions about ________.
A) work specialization and mechanisms
B) chain of command and span of control
C) centralization and matrices
D) strategy and structure
Answer: B
Diff: 2
Page Ref: 185
Topic: Designing Organizational Structure
31) In describing the degree to which tasks in an organization are divided into separate jobs,
managers use the term ________.
A) work specialization
B) departmentalization
C) chain of command
D) span of control
Answer: A
Diff: 2
Page Ref: 185
Topic: Designing Organizational Structure
4
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
32) Which statement accurately defines work specialization?
A) It is the degree to which tasks are grouped together.
B) Individual employees specialize in doing part of an activity rather than the entire activity.
C) Jobs are ranked relative only to their worth or value to the businesses.
D) It clarifies who reports to whom.
Answer: B
Diff: 3
Page Ref: 185
Topic: Designing Organizational Structure
33) On what basis are jobs grouped in order to accomplish organizational goals?
A) departmentalization
B) centralization
C) formalization
D) coordination
Answer: A
Diff: 2
Page Ref: 185
Topic: Designing Organizational Structure
34) Functional departmentalization groups jobs by ________.
A) tasks they perform
B) territories they serve
C) products or services they manufacture or produce
D) type of customer they serve
Answer: A
Diff: 2
Page Ref: 186
Topic: Designing Organizational Structure
35) Departmentalization based on ________ groups' jobs is based on the territory or physical
location.
A) functional
B) product
C) geographic
D) matrix
Answer: C
Diff: 1
Page Ref: 186
Topic: Designing Organizational Structure
36) ________ departmentalization is based on the product or customer flow through the
organization.
A) Product
B) Functional
C) Process
D) Organizational structure
Answer: C
Diff: 2
Page Ref: 186
Topic: Designing Organizational Structure
5
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
37) What kind of departmentalization would be in place in a government organization where
different public service responsibilities are divided into activities for employers, children, and the
disabled?
A) product
B) geographic
C) outcome
D) customer
Answer: D
Diff: 2
Page Ref: 186
Topic: Designing Organizational Structure
38) ________ departmentalization is used more in recent years to better monitor the needs of
customers and to respond to changes in those needs.
A) Needs-based
B) Functional
C) Process
D) Customer
Answer: D
Diff: 2
Page Ref: 186
Topic: Designing Organizational Structure
39) Work teams composed of individuals from various functional specialties are known as
________ teams.
A) differentiated
B) product
C) cross-functional
D) weak
Answer: C
Diff: 2
Page Ref: 187
Topic: Designing Organizational Structure
40) The line of authority that extends from the upper levels of management to the lowest levels
of the organization is ________.
A) authorized line of responsibility
B) unity of command
C) responsibility factor
D) chain of command
Answer: D
Diff: 2
Page Ref: 187
Topic: Designing Organizational Structure
6
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
41) ________ refers to the rights inherent to a position that allows a manager to tell subordinates
what to do and expect them to do it.
A) Responsibility
B) Unity of command
C) Chain of command
D) Authority
Answer: D
Diff: 2
Page Ref: 187
Topic: Designing Organizational Structure
42) ________ is the obligation or expectation to perform a duty.
A) Responsibility
B) Unity of command
C) Chain of command
D) Span of control
Answer: A
Diff: 2
Page Ref: 187
Topic: Designing Organizational Structure
43) Which one of Fayol's 14 principles of management helps preserve the concept of a
continuous line of authority?
A) unity of demand
B) unity of command
C) demand structure
D) continuous demand
Answer: B
Diff: 2
Page Ref: 187
Topic: Designing Organizational Structure
44) The theory that a person should report to only one manager is called ________.
A) authorized line of responsibility
B) unity of command
C) responsibility factor
D) chain of command
Answer: B
Diff: 2
Page Ref: 187
Topic: Designing Organizational Structure
45) Concepts such as chain of command and authority are considerably less relevant today
because of things like ________.
A) information technology
B) span of control
C) conflicting demands of multiple bosses
D) empowerment
Answer: A
Diff: 3
Page Ref: 187
Topic: Designing Organizational Structure
Skill: AACSB: Technology
7
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
46) The traditional view was that managers could not and should not directly supervise more
than ________ subordinates.
A) three or four
B) five or six
C) seven or eight
D) nine or ten
Answer: B
Diff: 2
Page Ref: 187
Topic: Designing Organizational Structure
47) The concept that defines the number of subordinates that report to a manager and that
indirectly specifies the number of levels of management in an organization is called ________.
A) authorized line of responsibility
B) unity of command
C) responsibility factor
D) span of control
Answer: D
Diff: 3
Page Ref: 187
Topic: Designing Organizational Structure
48) All other things being equal, as the span of control grows wider or larger, organizational
design becomes more ________.
A) bureaucratic
B) democratic
C) effective
D) efficient
Answer: D
Diff: 3
Page Ref: 188
Topic: Designing Organizational Structure
49) When the span of control ________, employee performance suffers due to a lack of time,
leadership, and support.
A) remains too small
B) becomes moderate
C) becomes too large
D) becomes less cost efficient
Answer: C
Diff: 2
Page Ref: 188
Topic: Designing Organizational Structure
50) Trends in the past few years have centered on a ________ span of control to reduce costs and
speed decision making.
A) narrower
B) wider
C) deeper
D) stable
Answer: B
Diff: 2
Page Ref: 188
Topic: Designing Organizational Structure
8
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
51) What factor influences the amount of centralization an organization uses?
A) Decisions are significant.
B) The company is geographically dispersed
C) The organization is facing the risk of company failure.
D) The environment is complex.
Answer: C
Diff: 2
Page Ref: 189
Topic: Designing Organizational Structure
52) What factor influences the amount of decentralization an organization uses?
A) Lower-level managers want a voice in decisions.
B) Lower level managers are not as capable at making decisions as upper-level managers.
C) Effective implementation of company strategies depends on managers retaining say over what
happens.
D) The company is large.
Answer: A
Diff: 2
Page Ref: 189
Topic: Designing Organizational Structure
53) In recent years, there has been a movement to make organizations more flexible and
responsive through ________.
A) centralization
B) decentralization
C) alternative organizational structure
D) customer-based structure
Answer: B
Diff: 2
Page Ref: 188
Topic: Designing Organizational Structure
54) The degree to which jobs are standardized and guided by rules and procedures is called
________.
A) work specialization
B) centralization
C) decentralization
D) formalization
Answer: D
Diff: 3
Page Ref: 189
Topic: Designing Organizational Structure
55) When managers standardize employee behavior through rules and procedures, the jobs are
becoming more ________.
A) diversified
B) formalized
C) vertical
D) horizontal
Answer: B
Diff: 3 Page Ref: 189
Topic: Designing Organizational Structure
9
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
56) A(n) ________ organization is rigidly controlled and efficient.
A) organic
B) horizontal
C) learning
D) mechanistic
Answer: D
Diff: 2
Page Ref: 190
Topic: Mechanistic and Organic Structures
57) Organizations that work like efficient, well-oiled machines are described as ________.
A) organic
B) mechanistic
C) rational
D) intuitive
Answer: B
Diff: 2
Page Ref: 190
Topic: Mechanistic and Organic Structures
58) Which of the following would likely be found in mechanistic organizations?
A) wide span of control
B) empowered employees
C) decentralized responsibility
D) standardized job specialties
Answer: D
Diff: 3
Page Ref: 190
Topic: Mechanistic and Organic Structures
59) A(n) ________ organization is able to change rapidly as needs require.
A) organic
B) horizontal
C) vertical
D) mechanistic
Answer: A
Diff: 2
Page Ref: 191
Topic: Mechanistic and Organic Structures
60) GlaxoSmithKline became more ________ when it restructured to allow lab scientists to set
the priorities and allocate the resources.
A) bureaucratic
B) mechanistic
C) volatile
D) organic
Answer: D
Diff: 3
Page Ref: 191
Topic: Mechanistic and Organic Structures
10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
61) The appropriate structure for an organization is based on four contingency variables:
strategy, size, degree of environmental uncertainty, and ________.
A) technology
B) history
C) leadership
D) intensity of competition
Answer: A
Diff: 1
Page Ref: 192
Topic: Mechanistic and Organic Structures
Skill: AACSB: Technology
62) In describing the relationship between structure and strategy, it can be said that ________.
A) structure follows strategy
B) strategy follows structure
C) strategy and structure are always handled equally
D) strategy follows structure in smaller organizations
Answer: A
Diff: 2
Page Ref: 191
Topic: Mechanistic and Organic Structures
63) Structure is related to the size of the organization, such that larger organizations tend to have
________ than smaller organizations.
A) more specialization
B) less departmentalization
C) less centralization
D) fewer rules and regulations
Answer: A
Diff: 2
Page Ref: 191
Topic: Mechanistic and Organic Structures
64) Structure is related to the size of the organization, such that larger organizations are more
________.
A) mechanistic
B) organic
C) structurally weak
D) decentralized
Answer: A
Diff: 2
Page Ref: 191
Topic: Mechanistic and Organic Structures
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
65) Joan Woodward's study of the relationship between technology and structure is based upon
her study of small manufacturing firms in ________.
A) the northeastern United States
B) the south of Wales
C) France
D) southern England
Answer: D
Diff: 3
Page Ref: 192
Topic: Mechanistic and Organic Structures
Skill: AACSB: Technology
66) As a type of technology, ________ centers on large-batch production and requires moderate
levels of complexity and sophistication.
A) unit production
B) mass production
C) process production
D) service production
Answer: B
Diff: 2 Page Ref: 192
Topic: Mechanistic and Organic Structures
Skill: AACSB: Technology
67) In Joan Woodward's study of the relationship between technology and structure, the structure
that was the most technically complex was ________.
A) unit production
B) mass production
C) process production
D) technological production
Answer: C
Diff: 2
Page Ref: 192
Topic: Mechanistic and Organic Structures
Skill: AACSB: Technology
68) According to Woodward's studies, what type of production works best with a mechanistic
structure?
A) unit
B) process
C) product
D) mass
Answer: D
Diff: 2
Page Ref: 192
Topic: Mechanistic and Organic Structures
12
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
69) The greater the environmental uncertainty, the more an organization needs to become
________.
A) organic
B) mechanistic
C) technologically pure
D) supportive of technological change
Answer: A
Diff: 2
Page Ref: 192
Topic: Mechanistic and Organic Structures
70) Global competition, accelerated product development by competitors, and increased
demands by customers for better service have encouraged organizations to become more
________.
A) organic
B) mechanistic
C) technologically pure
D) task oriented
Answer: A
Diff: 2
Page Ref: 192
Topic: Mechanistic and Organic Structures
71) Traditional organizational designs tend to be more mechanistic, and include ________.
A) simple, functional, and corporate structures
B) simple, functional, and business unit structures
C) functional, strategic, and business unit structures
D) simple, functional, and divisional structures
Answer: D
Diff: 2
Page Ref: 193
Topic: Common Organizational Designs
72) What is a strength of a simple structure?
A) Employees are grouped with others who have similar tasks.
B) It focuses on results.
C) It is inexpensive to maintain.
D) There are cost-saving advantages from specialization.
Answer: C
Diff: 1
Page Ref: 193
Topic: Common Organizational Designs
73) What is a weakness of a simple structure?
A) Duplication of activities and resources increases costs and reduces efficiency.
B) Functional specialists become insulated and have little understanding of what other units are
doing.
C) Pursuit of functional goals can cause managers to lose sight of what's best for the overall
organization.
D) Reliance on one person is risky.
Answer: D
Diff: 1
Page Ref: 193
Topic: Common Organizational Designs
13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
74) The strength of a ________ structure is based on results of managers, but it has a weakness
because duplication can occur easily within the organization.
A) simple
B) functional
C) divisional
D) matrix
Answer: C
Diff: 3
Page Ref: 193
Topic: Common Organizational Designs
75) A small business with low departmentalization, wide spans of control, centralized authority,
and limited formalization can be said to possess a ________ structure.
A) simple
B) functional
C) divisional
D) matrix
Answer: A
Diff: 1
Page Ref: 193
Topic: Common Organizational Designs
76) An online wine retailer that sells and ships hundreds of wines to customers all over the world
with a payroll of six employees, most likely has what kind of organizational structure?
A) bureaucratic
B) simple
C) functional
D) divisional
Answer: B
Diff: 3
Page Ref: 193
Topic: Common Organizational Designs
Skill: AACSB: Globalizations
77) As the number of employees in an organization grows, structure tends to become more
________.
A) specialized
B) informal
C) centralized
D) relaxed
Answer: A
Diff: 1
Page Ref: 193
Topic: Common Organizational Designs
14
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
78) What type of organizational structure is made up of autonomous, self-contained units?
A) bureaucratic
B) simple
C) functional
D) divisional
Answer: D
Diff: 2
Page Ref: 193
Topic: Common Organizational Designs
79) Managers in contemporary organizations are finding that traditional hierarchical designs
________ for the environments they face.
A) form a foundation
B) are somewhat suitable
C) are perfectly suitable
D) often are not appropriate
Answer: D
Diff: 3
Page Ref: 194
Topic: Common Organizational Designs
80) In what type of organizational structure is empowerment most crucial?
A) bureaucratic
B) simple
C) functional
D) team
Answer: D
Diff: 1
Page Ref: 194
Topic: Common Organizational Designs
81) In large organizations, the team structure complements what is typically a ________
structure.
A) simple
B) divisional
C) matrix
D) project
Answer: B
Diff: 2
Page Ref: 195
Topic: Common Organizational Designs
82) What is an advantage of a team structure?
A) Employees are more involved and empowered.
B) The fluid and flexible design can respond to environmental changes.
C) It draws on talent wherever it is found.
D) It allows for faster decision making.
Answer: A
Diff: 1
Page Ref: 194
Topic: Common Organizational Designs
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
83) What is a disadvantage of a team structure?
A) There is an increased complexity of assigning people to projects.
B) There are task and personality conflicts.
C) There is no clear chain of command.
D) There are communication difficulties.
Answer: A
Diff: 1
Page Ref: 194
Topic: Common Organizational Designs
84) When an organization assigns specialists to groups according to the projects they are
working on, this is called a ________.
A) divisional structure
B) functional structure
C) product structure
D) matrix structure
Answer: D
Diff: 3
Page Ref: 195
Topic: Common Organizational Designs
85) A matrix structure mixes characteristics of functional departmentalization and ________.
A) product departmentalization
B) process departmentalization
C) a dual chain of command
D) a narrow span of control
Answer: A
Diff: 3
Page Ref: 195
Topic: Common Organizational Designs
86) A matrix structure violates a key element of organizational design called ________.
A) unity of command
B) chain of command
C) span of management
D) decentralization
Answer: A
Diff: 2
Page Ref: 195
Topic: Common Organizational Designs
87) A ________ structure is an advanced version of the matrix organization, where employees
continuously work on assignments that are oriented to completion of a task.
A) weighted
B) functional
C) conservative
D) project
Answer: D
Diff: 3
Page Ref: 195
Topic: Common Organizational Designs
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
88) A ________ design is not limited to horizontal, vertical, or external boundary imposed by a
conventional structure.
A) learning organization's
B) threatened organization's
C) functional
D) boundaryless organization's
Answer: D
Diff: 3
Page Ref: 195
Topic: Common Organizational Designs
89) A ________ organization consists of a small core of full-time employees and temporarily
hires outside specialists to work on emergent opportunities.
A) network
B) virtual
C) modular
D) learning
Answer: B
Diff: 2
Page Ref: 195
Topic: Common Organizational Designs
90) A ________ organization is a small core organization that outsources major business
functions such as manufacturing, allowing the firm to concentrate on its core competencies.
A) network
B) virtual
C) modular
D) learning
Answer: A
Diff: 2
Page Ref: 196
Topic: Common Organizational Designs
91) Why is keeping employees connected a major structural design challenge for managers?
A) Work tasks are fairly predictable and constant.
B) Most jobs are full-time and continue indefinitely.
C) Work is done at the employer's place of business under a manager's supervision.
D) Employees are widely dispersed.
Answer: D
Diff: 1
Page Ref: 196
Topic: Common Organizational Designs
92) A learning organization has developed its ________.
A) educational department to keep employees trained
B) capacity to adapt and change
C) barriers to entry of its markets
D) a sustainable competitive advantage that is easy to maintain
Answer: B
Diff: 3
Page Ref: 197
Topic: Common Organizational Designs
17
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
93) Some organizational theorists go so far as to say that an organization's ability to ________
may be the only sustainable source of competitive advantage.
A) apply what they learn
B) maintain its structure
C) keep employees connected
D) manage a global structure
Answer: A
Diff: 2
Page Ref: 197
Topic: Common Organizational Designs
94) Organizational learning can't take place without ________.
A) motivation
B) goals
C) sharing information
D) structure
Answer: C
Diff: 2
Page Ref: 197
Topic: Common Organizational Designs
95) Researchers have concluded that the structures and strategies of organizations worldwide are
________ and the behavior within them is ________.
A) similar; also similar
B) similar; consistent with the individual cultures
C) dissimilar; similar
D) dissimilar; consistent with the individual cultures
Answer: B
Diff: 3
Page Ref: 198
Topic: Common Organizational Designs
96) One study showed that ________ may be more important in less economically developed
countries and less important in more economically developed countries.
A) departmentalization
B) formalization
C) span of control
D) chain of command
Answer: B
Diff: 3
Page Ref: 198
Topic: Designing Organizational Structure
18
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Eric the Redd (Scenario)
Eric Redd graduated from college and was hired by a corporation that manufactured parts for the
automotive industry. The employees on the assembly line seemed bored, and their motivation
was low. Eric's employer decided to try to reorganize to increase productivity. During his career,
Eric will see his job change from an engineer to a more complex job assignment.
97) The jobs of assembly-line employees are to be changed to allow more tasks to be done by
individual workers. This is a reduction in ________.
A) work specialization
B) departmentalization
C) chain of command
D) centralization
Answer: A
Diff: 3
Page Ref: 185
Topic: Designing Organizational Structure
98) Eric majored in engineering and really enjoyed the work assignment. The reorganization
changed some of his work assignments to include working on a team with production workers
and marketing specialists designing the newest products the company will offer. This could be
described as a(n) ________.
A) alternative work assignment
B) career degrading assignment
C) centralized work assignment
D) cross-functional team assignment
Answer: D
Diff: 2
Page Ref: 187
Topic: Common Organizational Designs
99) Eric is offered a chance to help direct the efforts of some employees assigned to his work
group. This is a chance of Eric to experience ________.
A) functional structure
B) divisional structure
C) responsibility
D) authority
Answer: D
Diff: 2
Page Ref: 187
Topic: Designing Organizational Structure
100) Eric sees this new assignment as an increase in ________, or an obligation or expectation
for him to perform at a new level.
A) functional structure
B) divisional structure
C) responsibility
D) authority
Answer: C
Diff: 2
Page Ref: 187
Topic: Designing Organizational Structure
19
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
General Hospital (Scenario)
Michelle is a registered nurse in charge of a new unit at her hospital. She would like to have a
more laidback approach in dealing with her new staff, but the hospital demands that there be
strict hierarchical levels and that all decisions must be signed off by Michelle. Sometimes this
drives Michelle nuts the constant filling out of forms, and so forth. She also feels that the
numerous levels of hierarchy are unnecessary and place barriers between herself and her staff.
She isn't sure why things have to be so "organized" and is thinking about speaking with her boss
to attempt changing her unit to have more flexibility and fewer rules.
101) Michelle is very concerned about the formal framework by which job tasks within her
nursing unit are divided, grouped, and coordinated within her unit. This framework is known as
the unit's ________.
A) formal organizational chart
B) organizational structure
C) staff
D) span of control
Answer: B
Diff: 2
Page Ref: 185
Topic: Designing Organizational Structure
102) Michelle's unit specializes in cardiology cases. Dividing work units up in such a manner is
most representative of ________ departmentalization.
A) functional
B) product
C) process
D) customer
Answer: D
Diff: 2
Page Ref: 186
Topic: Designing Organizational Structure
103) Michelle was asked to represent her cardiac unit as part of a Total Quality Management
(TQM) initiative that is aimed at improving the overall quality of care at the hospital. Other
departments, such as Cardiology and ER, also have representatives on this team. The TQM team
exemplifies ________.
A) project management
B) a cross-functional team
C) process integration
D) customer departmentalization
Answer: B
Diff: 1
Page Ref: 187
Topic: Designing Organizational Structure
20
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
104) Michelle has noticed that everyone is very concerned about the line of authority within the
organization. The line of authority within the organization is also called a(n) ________.
A) responsibility
B) chain of command
C) span of control
D) organizational strategy
Answer: B
Diff: 1
Page Ref: 187
Topic: Designing Organizational Structure
105) Michelle is required to sign off on all decisions, suggesting the hospital has what kind of
decision-making authority?
A) centralized
B) formal
C) autocratic
D) strict
Answer: A
Diff: 2
Page Ref: 188
Topic: Designing Organizational Structure
You Can Take That to the Bank (Scenario)
Changes in banking regulations, a series of loan defaults by dotcom customers and a decline in
the California real estate market have forced Western Bank, a large regional West Coast bank, to
downsize in an effort to improve profitability and bolster its sagging stock price. Susan Q., a
regional branch supervisor for the Sacramento district, has been tasked with preparing a
management report concerning how these cuts are affecting bank operations and customer
service. Susan believes that the most important problem that has emerged concerns span of
control and decision-making authority within the bank. In the past, bank policy was that no
manager should supervise more than six subordinates and only managers could make decisions
for their individual units. However, with many of the cuts coming in middle management, upper
management has increased its span of control while still insisting on managerial-only decision
making at the unit level. The result is that upper managers spend all of their time putting out fires
and subordinates feel they are getting answers too slowly. As a result, lower level employees are
requesting greater authority to make decisions on their own. However, they are not as
experienced at making decisions as upper-level managers. Susan Q believes that structural
changes must be made that reflect Western Bank's new situation.
106) Based upon the preceding description of Western Bank's situation, which aspect of the
current situation is inconsistent with Western Bank's decision to maintain a centralized form of
decision making?
A) Lower-level managers want a voice in decisions.
B) Lower-level managers are not as experienced at making decisions as upper-level managers.
C) The company is large.
D) The organization is facing a crisis.
Answer: A
Diff: 2
Page Ref: 189
Topic: Designing Organizational Structure
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
107) Susan believes that Western Bank should be more highly adaptive and flexible. She would
like Western Bank to possess more of a(n) ________ structure?
A) organic
B) mechanistic
C) formalized
D) technological
Answer: A
Diff: 1
Page Ref: 191
Topic: Mechanistic and Organic Structures
Black Gold, Texas Tea (Scenario)
Paul Abdul Oil Corporation (PAOC) began as a relatively small oil company. However, through
the years it has grown to become an international corporation.
108) As PAOC continues to grow, a highly trained group of managers and analysts has
developed at corporate headquarters. This group is highly adaptive in its structure. Members of
this group do not have standardized jobs, but are empowered to handle diverse job activities and
problems. This group of employees is said to have a(n) ________ structure.
A) simple
B) divisional
C) functional
D) organic
Answer: D
Diff: 3
Page Ref: 191
Topic: Mechanistic and Organic Structures
22
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Leather and Lacey (Scenario)
Lacey has been hired as a consultant for XYZ Consulting. Her first assignment is to work with
one of XYZ's newest clients, Custom Leather, Inc., a manufacturer of high-end leather furniture.
Custom Leather was founded over a decade ago with the idea that great looking, comfortable
leather furniture could be custom made and delivered to customers in 30 days. Traditionally,
retailers stock leather sofas to satisfy the desire to receive new furniture fast limiting the choice
of colors and style for the consumer. In stark contrast, Custom Leather offers 13 different styles
in over 70 different colors from rich, deep browns to bright, sunflower; sleek, silver grays and
bright, ruby red through a select group of retail outlets. Each piece is built to the customer's
individual requirements and is shipped within 2-3 weeks. However, the emergence of a new
manufacturing technology has enabled a few, traditionally mass-production competitors to offer
greater customization, minimizing some of Custom Leather's competitive advantage. As a result,
Custom Leather is considering sweeping changes to current work processes and organizational
structure.
109) Many of Custom Leather's 75 employees are highly skilled and experienced artisans. Many
long-time employees are stockholders and all participate in the profit sharing plan. While there is
division of labor, the jobs most floor employees perform are not highly standardized.
Management has found that employees take great pride in their craft, and thus they require
minimal formal rules and little direct supervision. These traits are most typical of a(n) ________
organization.
A) informal
B) mechanistic
C) organic
D) empowered
Answer: C
Diff: 2
Page Ref: 191
Topic: Mechanistic and Organic Structures
110) After reading Woodward's work at Lacey's suggestion, Custom Leather CEO Miles
Standish asks her about other contingency factors that should be considered in optimally
designing the firm's structure. Lacey responds that another contingency factor linked to structure
is ________.
A) market orientation
B) process
C) organizational complexity
D) size
Answer: D
Diff: 2
Page Ref: 191
Topic: Mechanistic and Organic Structures
23
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
111) Standish is interested in learning more about the link between strategic decision making and
organizational structure. Lacey suggested that the research and writings of ________, which
were based on studies of U.S. firms in the late 1950s and early 1960s and remain the most
seminal study in this area.
A) Arthur Miller
B) Joan Woodward
C) Alfred Chandler
D) Raymond Kramer
Answer: C
Diff: 3
Page Ref: 191
Topic: Mechanistic and Organic Structures
112) Standish is considering doubling the size of his workforce in conjunction with expanding
the number of retail outlets that carry Custom Leather products. Lacey tells him that he should
expect the organization to become more ________ as a result of this change.
A) mechanistic
B) formalized
C) organic
D) complex
Answer: A
Diff: 1
Page Ref: 191
Topic: Mechanistic and Organic Structures
113) At their first meeting, Lacey provides copies of a collection of Joan Woodward's essays for
Custom Leather's management to read. Lacey believes that Woodward's work may be
particularly pertinent in considering Custom Leather's organizational structure, since Woodward
believed that the effectiveness of the organization was related to the fit between the firm's
________.
A) employees and products
B) technology and structure
C) size and structure
D) processes and employees
Answer: B
Diff: 2
Page Ref: 192
Topic: Mechanistic and Organic Structures
Skill: AACSB: Technology
114) Since Custom Leather produces individually customized couches, this could best be
referred to as what kind of production?
A) mass
B) process
C) unit
D) environmental
Answer: C
Diff: 2
Page Ref: 192
Topic: Mechanistic and Organic Structures
24
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
115) Custom Leather's competitors typically produce their couches in large batches. This could
best be referred to as what kind of production?
A) mass
B) process
C) unit
D) environmental
Answer: A
Diff: 2
Page Ref: 192
Topic: Mechanistic and Organic Structures
116) Lacey tells Standish that studies have found that as environmental uncertainty increases,
________ designs tend to be most effective.
A) organic
B) mechanistic
C) traditional
D) centralized
Answer: A
Diff: 1
Page Ref: 192
Topic: Mechanistic and Organic Structures
Black Gold, Texas Tea (Scenario)
Paul Abdul Oil Corporation (PAOC) began as a relatively small oil company. However, through
the years it has grown to become an international corporation.
117) The original entrepreneurial venture consisted only of Mr. Abdul and a few employees. It
was an informal organization, and everyone reported to Mr. Abdul. This is best described as a
________ structure.
A) simple
B) functional
C) divisional
D) matrix
Answer: A
Diff: 1
Page Ref: 193
Topic: Common Organizational Designs
118) A sharp rise in oil prices helped PAOC's business expand. Abdul concluded that it was
impractical and inefficient for all decisions to continue flowing through his office. He granted his
key subordinates the authority and responsibility to manage others within their areas of specialty.
This organizational structure is best described as a ________ structure.
A) simple functional
B) functional
C) divisional
D) matrix
Answer: B
Diff: 2
Page Ref: 193
Topic: Common Organizational Designs
25
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
119) Paul Abdul decided to purchase an oil drilling supply company, located in a new country.
The purchase of this company was classified as a related diversification, but distance and the
new product line suggested that this newly purchased organization continue to be operated as a
separate company. In beginning a new phase in the history of Paul Abdul Oil Corporation, a
________ structure should be implemented to allow the company to continue to grow.
A) simple
B) functional
C) divisional
D) matrix
Answer: C
Diff: 3
Page Ref: 193
Topic: Common Organizational Designs
120) To deal with the workload in an effective manner, PAOC's executive management group
assigns specialists from the different functional departments to work on one or more work groups
that are led by project managers. This popular contemporary design is called a(n) ________
structure.
A) matrix
B) divisional
C) functional
D) organic
Answer: A
Diff: 2
Page Ref: 195
Topic: Common Organizational Designs
121) Twenty years after founding PAOC, Abdul decides he is approaching retirement. He wants
PAOC to develop the capacity to adapt itself and change because each member will take an
active role in identifying and resolving work-related issues. Abdul wants the firm to become a
________.
A) learning organization
B) threatened organization
C) functional structure
D) boundaryless organization
Answer: A
Diff: 2
Page Ref: 197
Topic: Common Organizational Designs
122) Several years after the retirement of Mr. Abdul, management at PAOC decided to sell off
its oil exploration and drilling supply holdings, and instead focus on the more profitable
distribution end of the business. In conjunction with this decision, management decided to
outsource most of its noncore functions, such as accounting, payroll, and human resources.
These moves are consistent with what type of contemporary organizational design?
A) a virtual organization
B) a network organization
C) a modular organization
D) a matrix organization
Answer: B
Diff: 3
Page Ref: 196
Topic: Common Organizational Designs
26
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Eric the Redd Part II (Scenario)
Eric Redd graduated from college and was hired by a corporation that manufactured parts for the
automotive industry. The employees on the assembly line seemed bored, and their motivation
was low. Eric's employer decided to try to reorganize to increase productivity.
123) During his career, Eric saw his job change from an engineering role to a more complex job
assignment. Eventually, Eric's department evolved to become an advanced structure in which
Eric continually worked on projects. This structure is known as a ________ structure.
A) simple
B) functional
C) divisional
D) project
Answer: D
Diff: 1
Page Ref: 195
Topic: Common Organizational Designs
124) In a short essay, list and explain the six key elements in designing an organization's
structure.
Answer: a. Work specialization this concept describes the degree to which tasks in an
organization are divided into separate jobs. The essence of work specialization is that an entire
job is not done by one individual, but instead is broken down into steps, with each step
completed by a different person.
b. Departmentalization the basis by which jobs are grouped together is called
departmentalization. The five common forms of departmentalization include functional, product,
geographical, process, and customer departmentalization.
c. Chain of command this is the continuous line of authority that extends from upper
organizational levels to the lowest levels and clarifies who reports to whom. It helps employees
answer questions such as "Who do I go to if I have a problem?" or "To whom am I responsible?"
d. Span of control this concept is important because, to a large degree, it determines the
number of levels and managers an organization has. All things being equal, the wider or larger
the span of control, the more efficient the organization.
e. Centralization and decentralization centralization describes the degree to which decision
making is concentrated at a single point in the organization. If top managers make the
organization's key decisions with little or no input from below, then the organization is
centralized. In contrast, the more that lower-level employees provide input or actually make
decisions, the more decentralization there is.
f. Formalization this refers to the degree to which jobs within the organization are
standardized and the extent to which employee behavior is guided by rules and procedures. If a
job is highly formalized, then the person doing that job has a minimum amount of discretion over
what is to be done, when it's to be done, and how he or she could do it.
Diff: 3
Page Ref: 185-190
Topic: Designing Organizational Structure
27
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
125) In a short essay, list and discuss the five common forms of departmentalization.
Answer: a. Functional departmentalization jobs are grouped by the functions (i.e.,
marketing, finance, human resources) performed. This approach can be used in all types of
organizations, although the functions change to reflect the organization's objectives and work
activities.
b. Product departmentalization jobs are grouped by product line. In this approach, each major
product area is placed under the authority of a manager who's a specialist in, and is responsible
for, everything having to do with that product line.
c. Geographical departmentalization jobs are grouped on the basis of a territory or geography
such as southern, midwestern, or northwestern regions for an organization operating only in the
United States; or for a global company, maybe U.S., European, Canadian, and Asian-Pacific
regions.
d. Process departmentalization this method groups jobs on the basis of product or customer
flow. In this approach, work activities follow a natural processing flow of product or even
customers.
e. Customer departmentalization jobs are grouped on the basis of common customers who
have common needs or problems that can best be met by having specialists for each.
Diff: 2
Page Ref: 189
Topic: Designing Organizational Structure
126) In a short essay, list six factors that influence the amount of centralization (or
decentralization) in an organization.
Answer: More Centralization
a. The environment is stable.
b. Lower-level managers are not as capable or experienced at making decisions as upper-level
managers.
c. Lower-level managers do not want to have a say in decisions.
d. Decisions are relatively minor.
e. The organization is facing a crisis or the risk of company failure.
f. The company is large.
g. Effective implementation of company strategies depends on managers' retaining a say over
what happens.
More Decentralization
a. The environment is complex, uncertain.
b. Lower-level managers are capable and experienced at making decisions.
c. Lower-level managers want a voice in decisions.
d. Decisions are relatively significant.
e. The corporate culture is open to allowing managers to have a say in what happens.
f. The company is geographically dispersed.
g. Effective implementation of company strategies depends on managers' having involvement
and flexibility to make decisions.
Diff: 2
Page Ref: 189
Topic: Designing Organizational Structure
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
127) In a short essay, list and discuss the four contingency variables that should be considered in
determining an appropriate structure in organizational design.
Answer: a. Strategy and structure an organization's structure should facilitate the
achievement of goals. Since goals are influenced by the organization's strategies, it's only logical
that strategy and structure should be closely linked. More specifically, structure should follow
strategy. If managers significantly change the organization's strategy, they will need to modify
structure to accommodate and support the change.
b. Size and structure there's considerable evidence that an organization's size significantly
affects its structure. For instance, large organizations those with 2,000 or more employees tend
to have more specialization, departmentalization, centralization, and rules and regulations than
do small organizations. However, the relationship isn't linear. Rather, size affects structure at a
decreasing rate; that is, size becomes less important as an organization grows.
c. Technology and structure every organization has at least one form of technology to convert
its inputs into outputs. The processes or methods that transform an organization's inputs into
outputs differ by their degree of routineness. In general, the more routine the technology, the
more standardized and mechanistic the structure can be. Organizations with more nonroutine
technology are more likely to have organic structures.
d. Environmental uncertainty and structure since uncertainty threatens an organization's
effectiveness, managers will try to minimize it. One way to reduce environmental uncertainty is
through adjustments in the organization's structure. The greater the uncertainty, the greater the
need for the flexibility offered by an organic design. On the other hand, in stable, simple
environments, mechanistic designs tend to be most effective.
Diff: 3
Page Ref: 191-192
Topic: Mechanistic and Organic Structures
128) In a short essay, list the three traditional organizational designs. Describe the characteristics
that are commonly associated with each.
Answer: In designing a structure to support the most efficient and effective accomplishment of
organizational goals, managers often rely upon tried and true traditional organizational designs.
These designs are: the simple structure, functional structure, and divisional structure.
a. The simple structure is most often associated with small entrepreneurial ventures and is
common among organizations where the owner and manager are one and the same. Simple
structures possess low departmentalization, wide spans of control, authority centralized in a
single person, and little formalization. As firms grow, structure tends to become more specialized
and formalized, departments and new levels of management are created, and the firm takes on a
more bureaucratic nature.
b. A functional structure is an organizational design that groups similar or related occupational
specialties together. It is a functional approach to departmentalization applied to the entire
organization. For example, organizing around the separate functions of operations, finance,
human resources, marketing, and R&D.
c. Finally, the divisional structure is an organizational structure made up of separate business
units or divisions. In this design, each unit maintains limited autonomy with a division manager
responsible for performance and determining who has strategic and operational authority within
the divisional unit. However, the parent corporation still typically acts as an external overseer to
coordinate and control the various divisions.
Diff: 2
Page Ref: 191-192
Topic: Common Organizational Designs
129) In a short essay, describe matrix and project structures. What are the advantages and
29
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
disadvantages of these structures?
Answer: The matrix structure is an organizational structure that assigns specialists from
different functional departments to work on one or more projects being led by project managers.
Each product is managed by an individual who staffs his or her product team with people from
each of the functional departments. The addition of this vertical dimension to the traditional
horizontal functional departments, in effect, "weaves together" elements of functional and
product departmentalization creating a matrix arrangement. One unique aspect of this design is
that it creates a dual chain of command, which violates the classical organizing principle of unity
of command. Employees in a matrix organization have two managers: their functional area
manager and their product or project manager, who share authority. The project managers have
authority over the functional members who are part of their project team in areas related to the
project's goals. However, decisions such as promotions, salary recommendations, and annual
reviews typically remain the functional manager's responsibility. To work effectively, project
and functional managers have to communicate regularly, coordinate work demands on
employees, and resolve conflicts together. Although the matrix structure is an effective structural
design choice for some organizations, many are using a more "advanced" type of project
structure, in which employees continuously work on projects. Unlike the matrix structure, a
project structure has no formal departments that employees return to at the completion of a
project. Instead, employees take their specific skills, abilities, and experiences to other projects.
In addition, all work in project structures is performed by teams of employees who become part
of a project team because they have the appropriate work skills and abilities. Project structures
tend to be fluid and flexible organizational designs. There's no departmentalization or rigid
organizational hierarchy to slow down decision making or taking actions. In this type of
structure, managers serve as facilitators, mentors, and coaches. They "serve" the project teams by
eliminating or minimizing organizational obstacles and by ensuring that the teams have the
resources they need to effectively and efficiently complete their work. The advantages of matrix
and project structures are that their fluid and flexible design can respond to environmental
changes and allows for faster decision making. The disadvantages are there is some complexity
of assigning people to projects and there are task and personality conflicts.
Diff: 2
Page Ref: 195
Topic: Common Organizational Designs
30
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130) In a short essay, describe the boundaryless organization. What types of boundaries are
there? What are the advantages and disadvantages of this organizational design?
Answer: Another approach to contemporary organizational design is the concept of a
boundaryless organization, an organization whose design is not defined by, or limited to, the
horizontal, vertical, or external boundaries imposed by a predefined structure. Although the idea
of eliminating boundaries may seem odd, many of today's most successful organizations are
finding that they can operate most effectively by remaining flexible and unstructured: that the
ideal structure for them is not having a rigid, bounded, and predefined structure. There are two
types: internal boundaries the horizontal boundaries imposed by work specialization and
departmentalization and the vertical boundaries that separate employees into organizational
levels and hierarchies; and external boundaries the boundaries that separate the organization
from its customers, suppliers, and other stakeholders. To minimize or eliminate these boundaries,
managers might use virtual or network structural designs. The advantages of a boundaryless
organization are that it is highly flexible and responsive and draws on talent wherever it is found.
The disadvantages are that there is a lack of control and it presents communication difficulties.
Diff: 1
Page Ref: 195
Topic: Common Organizational Designs
131) In a short essay, describe a learning organization. What structural aspects does a learning
organization need?
Answer: A learning organization is an organization that has developed the capacity to
continuously learn, adapt, and change. In a learning organization, employees continually acquire
and share new knowledge and are willing to apply that knowledge in making decisions or
performing their work. Some organizational theorists even go so far as to say that an
organization's ability to do this that is, to learn and to apply that learning may be the only
sustainable source of competitive advantage. What structural aspects does a learning
organization need? First, it's critical for members in a learning organization to share information
and collaborate on work activities throughout the entire organization across different functional
specialties and even at different organizational levels. To do this requires minimal structural and
physical barriers. In such a boundaryless environment, employees can work together and
collaborate in doing the organization's work the best way they can and learn from each other.
Finally, because of this need to collaborate, teams also tend to be an important feature of a
learning organization's structural design. Employees work in teams that are empowered to make
decisions about doing whatever work needs to be done or resolving issues. With empowered
employees and teams, there's little need for "bosses" to direct and control. Instead, managers
serve as facilitators, supporters, and advocates.
Diff: 2
Page Ref: 197
Topic: Common Organizational Designs
31
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 10 Managing Human Resources
1) High-performance work practices are those that lead to high individual and high
organizational performance.
Answer: TRUE
Diff: 2
Page Ref: 207
Topic: The Human Resource Management Process
2) High-performance work practices involve a commitment by management to improve the
knowledge skills and abilities of the organization's employees, increasing employee motivation,
and enhancing the retention of quality employees.
Answer: TRUE
Diff: 1
Page Ref: 207
Topic: The Human Resource Management Process
3) The human resource management (HRM) process consists of 10 activities necessary for
staffing the organization and sustaining high employee performance.
Answer: FALSE
Diff: 2
Page Ref: 207
Topic: The Human Resource Management Process
4) A labor union is an organization that represents workers and seeks to protect their interests.
Answer: TRUE
Diff: 1
Page Ref: 207
Topic: The Human Resource Management Process
5) In the United States, nearly 25 percent of all workers are unionized.
Answer: FALSE
Diff: 2
Page Ref: 207
Topic: The Human Resource Management Process
6) Affirmative action programs assure that minorities are given equal opportunities in the
workplace.
Answer: FALSE
Diff: 3
Page Ref: 208
Topic: The Human Resource Management Process
7) A community fire department can categorically deny employment to a firefighter applicant
who is confined to a wheelchair.
Answer: TRUE
Diff: 2
Page Ref: 208
Topic: The Human Resource Management Process
8) Human resource planning can be condensed into two steps: assessing current human resources
and assessing and meeting future resource needs.
Answer: TRUE
Diff: 1
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
9) Job descriptions focus on the job, while job specifications focus on the person.
Answer: TRUE
Diff: 1
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
10) One disadvantage to employee referrals as a source of job candidates is that candidates tend
to be minimally skilled.
Answer: FALSE
Diff: 2
Page Ref: 211
Topic: Identifying and Selecting Competent Employees
11) Firing and early retirements are two decruitment options.
Answer: TRUE
Diff: 2
Page Ref: 212
Topic: Identifying and Selecting Competent Employees
12) A selection device is valid if it measures the same thing consistently.
Answer: FALSE
Diff: 3
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
13) In a realistic job preview (RJP), an applicant might be told that there are limited
opportunities to interact with peers during office hours and that the likelihood for advancement is
slim.
Answer: TRUE
Diff: 2
Page Ref: 214
Topic: Identifying and Selecting Competent Employees
14) There are three types of orientation: work unit orientation, organization orientation, and
procedural orientation.
Answer: FALSE
Diff: 2
Page Ref: 215
Topic: Providing Employees with Needed Skills and Knowledge
15) Job rotation is the implementation of lateral transfers allowing employees to work at
different jobs in an organization.
Answer: TRUE
Diff: 2
Page Ref: 216
Topic: Providing Employees with Needed Skills and Knowledge
16) Types of performance appraisal methods include written essays, multiperson comparisons,
and graphic rating scales.
Answer: TRUE
Diff: 1
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
2
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17) Variable pay systems reward employees for the job skills and competencies they can
demonstrate.
Answer: FALSE
Diff: 2
Page Ref: 219
Topic: Retaining Competent, High-Performing Employees
18) Studies find that downsizing is as stressful for the survivors as it is for the victims.
Answer: TRUE
Diff: 2
Page Ref: 221
Topic: Contemporary Issues in Managing Human Resources
19) Although most sexual harassment complaints are filed against men, the percentage of charges
filed against women has steadily risen over the past decade.
Answer: TRUE
Diff: 2
Page Ref: 221
Topic: Contemporary Issues in Managing Human Resources
20) Sexual harassment is defined as any desired action or activity of a sexual nature that
explicitly affects an individual's employment, performance, or work environment.
Answer: FALSE
Diff: 1
Page Ref: 221
Topic: Contemporary Issues in Managing Human Resources
21) A firm can do little to protect itself from sexual harassment claims. It is usually one
employee's word against another's.
Answer: FALSE
Diff: 2
Page Ref: 221
Topic: Contemporary Issues in Managing Human Resources
22) The environment in today's organizations with mixed-gender work teams and working long
hours is undoubtedly contributing to an increased number of workplace romances.
Answer: TRUE
Diff: 2
Page Ref: 222
Topic: Contemporary Issues in Managing Human Resources
23) Work-family life conflicts are less relevant for male and single employees as they are for
married and female employees.
Answer: FALSE
Diff: 1
Page Ref: 222
Topic: Contemporary Issues in Managing Human Resources
24) Today's progressive workplaces provide a wide range of scheduling options and benefits that
allow employees more flexibility at work and allow them to better balance or integrate their
work and personal lives.
Answer: TRUE
Diff: 1
Page Ref: 223
Topic: Contemporary Issues in Managing Human Resources
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25) People who prefer integration are more likely to respond positively to options such as
flextime and part-time hours.
Answer: FALSE
Diff: 2
Page Ref: 222
Topic: Contemporary Issues in Managing Human Resources
26) Various studies have concluded that an organization's human resources can be a significant
source of ________.
A) competitive advantage
B) problems for management
C) frustration for employees
D) high-performance work practices
Answer: A
Diff: 2
Page Ref: 206
Topic: The Human Resource Management Process
27) High-performance work practices are characterized by ________.
A) improving knowledge, skills, and abilities of employees
B) allowing managers to lead in their own best style
C) allowing employees to loaf on the job as long as they can produce average daily production
levels
D) decreasing employees' motivation
Answer: A
Diff: 2
Page Ref: 207
Topic: The Human Resource Management Process
28) High-performance work practices include such activities as ________.
A) closed communication
B) centralized decision making
C) firm job assignments
D) self-managed teams
Answer: D
Diff: 2
Page Ref: 207
Topic: The Human Resource Management Process
29) The first ________ activities of the human resource management (HRM) process ensure that
competent employees are identified and selected.
A) two
B) three
C) four
D) five
Answer: B
Diff: 2
Page Ref: 207
Topic: The Human Resource Management Process
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30) The final three activities of the HRM process ________.
A) ensure that the organization retains competent and high-performing employees
B) ensure that the organization selects and trains competent employees
C) identify for the organization the best compensation packages for the new hires
D) provide employees with up-to-date knowledge and skills
Answer: A
Diff: 2
Page Ref: 208
Topic: The Human Resource Management Process
31) Labor unions use ________ to protect the rights of their members.
A) functional operations
B) new product development
C) collective bargaining
D) process
Answer: C
Diff: 1
Page Ref: 207
Topic: The Human Resource Management Process
32) In organizations, ________ programs ensure that protected classes are retained and their
opportunities are maintained.
A) needs-based analysis
B) functional
C) global human resource management
D) affirmative action
Answer: D
Diff: 2
Page Ref: 208
Topic: The Human Resource Management Process
Skill: AACSB: Multicultural and Diversity
33) Federal laws, the largest environmental factor constraining human resource activities, cover
such processes as ________.
A) choosing employees to be hired
B) directing who can be hired
C) selecting who can be fired
D) selecting pay scales
Answer: B
Diff: 2
Page Ref: 208
Topic: The Human Resource Management Process
34) What U.S. act permits employees in organizations with 50 or more workers to take up to 12
weeks of unpaid leave each year for family or medical reasons?
A) Civil Rights Act of 1991
B) Fair Pay Overtime Initiative
C) Family and Medical Leave Act of 1993
D) Health Insurance Portability and Accountability Act of 1996
Answer: C
Diff: 1
Page Ref: 209
Topic: The Human Resource Management Process
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35) By 2010, more than half of all workers in the United States will be ________.
A) baby boomers
B) Gen Yers
C) over 40
D) retiring
Answer: C
Diff: 2
Page Ref: 209
Topic: The Human Resource Management Process
36) The beginning point for any human resource planning process is the examination of the
current human resource status by making a ________.
A) strategic plan
B) human resource inventory
C) product evaluation
D) analysis of customer demands
Answer: B
Diff: 1
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
37) An assessment that defines the jobs and behaviors necessary to perform the job is known as a
________.
A) job description
B) job specification
C) goal-oriented job definition
D) job analysis
Answer: D
Diff: 3
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
38) Job analysis is concerned with which of the following human resource planning aspects?
A) deciding how well someone is performing his or her job
B) what behaviors are necessary to perform a job
C) hiring someone to do a job
D) estimating pay on job level in an organization
Answer: B
Diff: 1
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
39) A written statement that describes a job to include; job content, environment, and conditions
of employment is called a ________.
A) job specification
B) process departmentalization
C) goal-oriented job definition
D) job description
Answer: D
Diff: 2
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
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40) A list of the minimum qualifications or requirements needed by an employee to perform a job
is known as a ________.
A) job analysis
B) job description
C) responsibility factor list
D) job specification
Answer: D
Diff: 2
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
41) Recruitment is the process of ________.
A) hiring employees from competitors
B) locating, identifying, and attracting potential employees
C) measuring the pressure in the local labor market
D) hiring from outside the organization
Answer: B
Diff: 3
Page Ref: 211
Topic: Identifying and Selecting Competent Employees
42) If human resource planning shows a surplus of employees, management may want to reduce
the organization's workforce through ________.
A) recruitment
B) decruitment
C) expansion
D) jobbing
Answer: B
Diff: 2
Page Ref: 211
Topic: Identifying and Selecting Competent Employees
43) As a source of potential job candidates, ________ generates the best referrals, because a
good referral reflects on the source of the recommendation.
A) the company Web site
B) the Internet
C) employee referrals
D) professional recruiting organizations
Answer: C
Diff: 2
Page Ref: 211
Topic: Identifying and Selecting Competent Employees
44) While ________ reaches a tremendous number of people, it also generates many unqualified
candidates for jobs.
A) the company Web site
B) the Internet
C) employee referrals
D) college recruiting
Answer: B
Diff: 2
Page Ref: 211
Topic: Identifying and Selecting Competent Employees
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45) Which of the following is a disadvantage of recruiting at colleges?
A) limited supply
B) generates many unqualified candidates
C) may not increase workforce diversity
D) limited to entry-level positions
Answer: D
Diff: 1
Page Ref: 211
Topic: Identifying and Selecting Competent Employees
46) As a decruitment option, ________ are a temporary involuntary termination that can last
from a few weeks to several years.
A) layoffs
B) attritions
C) transfers
D) early retirements
Answer: A
Diff: 2
Page Ref: 212
Topic: Identifying and Selecting Competent Employees
47) Which of the following is not an option for decruitment?
A) attrition
B) reduced workweeks
C) early retirements
D) Internet hiring
Answer: D
Diff: 2
Page Ref: 212
Topic: Identifying and Selecting Competent Employees
48) Which of the following decruitment methods is accomplished by not filling openings created
by normal retirements?
A) firing
B) layoffs
C) attrition
D) reduced workweeks
Answer: C
Diff: 2
Page Ref: 212
Topic: Identifying and Selecting Competent Employees
49) ________ is the proven relationship between the selection device and some relevant job
selection criterion.
A) Responsibility
B) Unreliability
C) Reliability
D) Validity
Answer: D
Diff: 2
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
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50) ________ indicates how consistent a selection device measures a criterion.
A) Operational scoring
B) Qualification
C) Reliability
D) Validity
Answer: C
Diff: 2
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
51) Which of the following is an example of selection device reliability?
A) An applicant's score on an intelligence test predicted his or her job performance.
B) A superior job performer was given a low interview score by all five independent
interviewers.
C) The intelligence test significantly predicted the job performance of 250 job applicants.
D) A protected group individual was given a low selection score and was a poor job performer.
Answer: B
Diff: 3
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
52) Asking a candidate for an automotive mechanic's position to deconstruct and reconstruct part
of an engine motor would be an example of what kind of selection device?
A) spatial test
B) performance-simulation test
C) intelligence test
D) interview
Answer: B
Diff: 1
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
53) Assessment centers are best if they are used to select ________.
A) senior management
B) semiskilled workers
C) routine operatives in the firm
D) unskilled workers
Answer: A
Diff: 2
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
54) A strength of using an application form as a selection device is that ________.
A) relevant biographical facts that can be verified have been shown to be valid performance
measures for some jobs
B) many items on most forms are valid in selecting good employees
C) they are moderately valid predictors for many semiskilled and unskilled lower-level jobs in
industrial organizations
D) they are reasonably good predictors for supervisory positions
Answer: A
Diff: 3
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
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55) To use a physical exam as a selection device, a company must ________.
A) be sure the physical requirements are valid and that they do not discriminate
B) have an insurance carrier that does not require the testing
C) prove that supervisors do not need physical abilities to perform their jobs
D) prove that the test has nothing to do with insurance
Answer: A
Diff: 3
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
56) A(n) ________ that includes both positive and negative aspects about the job and the
company provides higher job satisfaction and lower turnover.
A) structured interview
B) unstructured interview
C) realistic job preview
D) assessment center
Answer: C
Diff: 2
Page Ref: 214
Topic: Identifying and Selecting Competent Employees
57) ________ familiarizes the employee with the goals of the work unit, clarifies how his or her
job contributes to the unit goals, and includes an introduction to his or her new co-workers.
A) Organizational orientation
B) Work unit orientation
C) Procedural orientation
D) An assessment center
Answer: B
Diff: 1
Page Ref: 215
Topic: Identifying and Selecting Competent Employees
58) Successful orientation, whether formal or informal, results in an outsider-insider transition
that ________.
A) makes the new member feel uncomfortable
B) helps the new member feel fairly well adjusted
C) lowers the likelihood of high work performance
D) increases the probability of a surprise resignation
Answer: B
Diff: 1
Page Ref: 215
Topic: Providing Employees with Needed Skills and Knowledge
59) It has been estimated that the dollar amount spent by U.S. firms on formal courses and
training programs is ________.
A) $553 million
B) $956 million
C) $31 billion
D) $59 billion
Answer: D
Diff: 1
Page Ref: 214
Topic: Providing Employees with Needed Skills and Knowledge
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60) What traditional training method involves employees working with an experienced worker
who provides information, support, and encouragement?
A) e-learning
B) experiential exercises
C) mentoring and coaching
D) on-the-job training
Answer: C
Diff: 2
Page Ref: 216
Topic: Providing Employees with Needed Skills and Knowledge
61) What training method involves employees participating in role playing, simulations, or other
face-to-face types of training?
A) experiential exercises
B) job rotation
C) mentoring and coaching
D) on-the-job training
Answer: A
Diff: 2
Page Ref: 216
Topic: Providing Employees with Needed Skills and Knowledge
62) What training method is Internet-based learning where employees participate in multimedia
simulations or other interactive modules?
A) CD-ROM/DVD/videotapes/audiotapes
B) e-learning
C) experiential exercises
D) videoconferencing/teleconferencing/satellite TV
Answer: B
Diff: 2
Page Ref: 216
Topic: Providing Employees with Needed Skills and Knowledge
Skill: AACSB: Technology
63) What is considered a technology-based training method?
A) classroom lectures
B) experiential exercises
C) videoconferencing/teleconferencing/satellite TV
D) workbooks/manuals
Answer: C
Diff: 1
Page Ref: 216
Topic: Providing Employees with Needed Skills and Knowledge
Skill: AACSB: Technology
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
64) ________ is a process of setting standards and measuring employee performance to arrive at
performance standards.
A) Time and motion study
B) Benchmarking
C) Legal influence arrangements
D) A performance management system
Answer: D
Diff: 3
Page Ref: 217
Topic: Retaining Competent, High-Performing Employees
65) The use of ________ focuses the evaluator's attention on key behaviors that distinguish
effective from ineffective work performance.
A) simple analysis
B) job analysis
C) critical incidents
D) graphic rating scales
Answer: C
Diff: 3
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
66) A performance appraisal method that allows the evaluator to rate employees on an
incremental scale is called a ________.
A) written essay
B) critical incident
C) graphic rating scale
D) multiperson comparison
Answer: C
Diff: 3
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
67) A performance appraisal system that combines a graphic rating scale and a critical incident
system into one process is a(n) ________.
A) written essay
B) 360-degree feedback
C) objective
D) behaviorally anchored rating scale
Answer: D
Diff: 3
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
68) ________ is a process used to compare one's performance with that of others.
A) Multiperson comparison
B) Job analysis
C) A critical incident
D) A graphic rating scale
Answer: A
Diff: 3
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
69) The most thorough performance appraisal method, ________, utilizes feedback from
supervisors, employees, and coworkers.
A) management by objectives
B) 360-degree feedback
C) critical incidents
D) graphic rating scales
Answer: B
Diff: 3
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
70) An organization's compensation system has been shown to have an impact on its ________.
A) turnover
B) profits
C) strategic performance
D) productivity
Answer: C
Diff: 3
Page Ref: 217
Topic: Retaining Competent, High-Performing Employees
71) What is not a factor that can influence compensation and benefits?
A) appearance and sex
B) unionization
C) geographical location
D) labor intensive
Answer: A
Diff: 1
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
72) Skill-based pay systems rely on the employee's job ________ to define his or her pay
category.
A) title
B) skills
C) performance
D) description
Answer: B
Diff: 3
Page Ref: 219
Topic: Retaining Competent, High-Performing Employees
73) What pay systems seem to be more successful in manufacturing organizations than in service
organizations and organizations pursuing technical innovations?
A) skill-based pay systems
B) traditional pay systems
C) variable pay systems
D) incentive pay systems
Answer: A
Diff: 2
Page Ref: 219
Topic: Retaining Competent, High-Performing Employees
13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
74) ________ is the term used to define planned elimination of jobs in an organization.
A) Downsizing
B) Decruitment
C) Recruitment
D) Planned firing
Answer: A
Diff: 2
Page Ref: 220
Topic: Contemporary Issues in Managing Human Resources
75) When an organization ________, it may need to eliminate jobs.
A) is faced with increasing market share
B) has grown too slowly
C) has been poorly managed
D) is confronted with new management
Answer: C
Diff: 2
Page Ref: 220
Topic: Contemporary Issues in Managing Human Resources
76) In providing assistance to employees being downsized, many organizations offer some form
of ________.
A) severance pay
B) employee training
C) orientation
D) family-friendly benefits
Answer: A
Diff: 2
Page Ref: 220
Topic: Contemporary Issues in Managing Human Resources
77) To help survivors of downsizing cope with their new stress, managers might want to
________.
A) individually call employees into the office intermittently with those being downsized
B) offer some form of severance pay
C) provide job search assistance
D) provide counselors for employees to talk to
Answer: D
Diff: 2
Page Ref: 220
Topic: Contemporary Issues in Managing Human Resources
78) To improve workplace diversity, managers should ________.
A) widen their recruiting net
B) downsize
C) hire more employee referrals
D) recruit more minority candidates
Answer: A
Diff: 3
Page Ref: 220
Topic: Contemporary Issues in Managing Human Resources
Skill: AACSB: Multicultural and Diversity
14
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
79) Which of the following statements is true of current situations in human resource
management?
A) To improve workforce diversity, managers need to narrow their approach to recruiting.
B) Once a diverse pool of applicants is defined, a manager does not need to address
discrimination as a problem.
C) Recent research has shown that diversity makes moving into a workforce harder for women
and minorities.
D) Some organizations are aggressively pursuing diversity efforts.
Answer: D
Diff: 3
Page Ref: 220
Topic: Contemporary Issues in Managing Human Resources
Skill: AACSB: Multicultural and Diversity
80) About ________ Fortune 500 companies have been sued for sexual harassment.
A) one in ten
B) one in five
C) one in three
D) one in two
Answer: C
Diff: 2
Page Ref: 221
Topic: Contemporary Issues in Managing Human Resources
81) ________ creates an unpleasant work environment and undermines workers' ability to
perform their job.
A) A workplace romance
B) Diversity
C) Sexual harassment
D) Work-family imbalance
Answer: C
Diff: 1
Page Ref: 221
Topic: Contemporary Issues in Managing Human Resources
82) When there are sexual harassment claims against an organization, the courts want to know
whether the organization ________.
A) knew about the alleged behavior
B) educated its employees on sexual harassment matters
C) had mechanisms available to monitor employees
D) ensured that no retaliatory actions were taken against a person who has filed the charges
Answer: A
Diff: 2
Page Ref: 221
Topic: Contemporary Issues in Managing Human Resources
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83) Why are workplace romances potentially problematic for organizations?
A) an increased work-family life imbalance
B) the potential for sexual harassment accusations
C) flirting on the job affects productivity
D) couples tend to act as their own team
Answer: B
Diff: 2
Page Ref: 222
Topic: Contemporary Issues in Managing Human Resources
84) What can organizations do to protect themselves against workplace romances?
A) have mechanisms available to monitor employees
B) ensure that no retaliatory actions are taken
C) educate employees on the dangers of workplace romances
D) have some type of policy regarding workplace dating among coworkers
Answer: D
Diff: 2
Page Ref: 222
Topic: Contemporary Issues in Managing Human Resources
85) "Family-friendly benefits" commonly include programs like ________.
A) health insurance programs
B) health savings accounts
C) time off for school functions
D) individual retirement accounts
Answer: C
Diff: 1
Page Ref: 222
Topic: Contemporary Issues in Managing Human Resources
86) People who prefer segmentation are more likely to be satisfied and committed to their jobs
when offered options such as ________.
A) job sharing
B) company-sponsored family picnics
C) on-site child care
D) gym facilities
Answer: A
Diff: 2
Page Ref: 223
Topic: Contemporary Issues in Managing Human Resources
87) What is not one way that organizations are controlling their health care costs?
A) passing on additional health care costs to employees
B) firing those who refuse to quit smoking
C) providing opportunities for employees to lead healthy lifestyles
D) eliminating health insurance from their benefit programs
Answer: D
Diff: 2
Page Ref: 224
Topic: Contemporary Issues in Managing Human Resources
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88) Many reasonably sound companies no longer provide ________.
A) health insurance
B) family-friendly benefits
C) pension plans
D) stock options
Answer: C
Diff: 2
Page Ref: 224
Topic: Contemporary Issues in Managing Human Resources
The New Human Resources Manager (Scenario)
Steve is hired to manage the human resources department of a local manufacturing company. this
company has the reputation of being the firm "where you work until you find another job."
Employee turnover is high and morale is low. Steve is determined to change the situation and
make the organization's human resources a competitive advantage and source of pride for the
firm.
89) Steve believes that achieving competitive success in business today requires that managers
change how they think about their employees and how they view the work relationship. He hopes
to initiate workplace programs geared toward improving organizational commitment to
improving the knowledge, skills, and abilities of employees, increasing employee motivation,
and enhancing retention of quality employees. These traits have been found to be consistent with
________.
A) employee empowerment
B) high-performance work practices
C) the human resources management process
D) performance appraisal methods
Answer: B
Diff: 2
Page Ref: 207
Topic: The Human Resource Management Process
90) Top management decides that the performance appraisal process is problematic. They ask
Steve to make a study of a new appraisal technique,________, which rates employees according
to items along a numerical scale with examples of actual behaviors on the job.
A) 360-degree feedback
B) objectives
C) behaviorally anchored rating scale
D) management by objectives
Answer: C
Diff: 3
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
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91) As part of restructuring the organization's human resources, Steve decides that new job
________, which state the minimum job qualifications that a person must possess to successfully
perform a given job, must be written for each position.
A) descriptions
B) specifications
C) analysis
D) satisfaction surveys
Answer: B
Diff: 2
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
92) Steve recommends a (an) ________ pay system that rewards employees for learning more
job skills and competencies.
A) knowledge-based
B) analyzed
C) functional stabilization
D) skills-based
Answer: D
Diff: 3
Page Ref: 219
Topic: Retaining Competent, High-Performing Employees
93) As one of his first tasks, Steve's boss asks him to develop a database of the education, special
capabilities and specialized skills of all the employees. This is known as a ________.
A) simple design of the organization
B) human resource inventory
C) division of labor
D) job analysis
Answer: B
Diff: 2
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
94) Steve believes that part of the reason for the high turnover is that individual jobs are very
poorly defined. Employees are not sure of what is expected of them and that performance
standards are unequal between regions and functions. Steve conducts a ________ for each
position, defining all the jobs and behaviors necessary to perform them.
A) job description
B) job specification
C) job analysis
D) job satisfaction analysis
Answer: C
Diff: 2
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
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The New Hire (Scenario)
Frances begins her career working in the human resources department of a major corporation.
She is asked to help ensure that the organization is following the federal guidelines for
employment.
95) Frances reviews the ________ guidelines, which outlines practices that enhance the
employment, upgrading, and retention of protected groups.
A) employment need-based
B) functional employment
C) global human resource management
D) affirmative action
Answer: D
Diff: 3
Page Ref: 208
Topic: The Human Resource Management Process
Skill: AACSB: Multicultural and Diversity
96) As Frances studies management selection processes, she finds that ________ can be used to
evaluate managerial potential through job simulation activities. In this process, the potential
employees are asked to perform various exercises to simulate real problems they would
encounter on the job.
A) written tests
B) interviews
C) assessment centers
D) work sampling
Answer: C
Diff: 3
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
97) To develop a proper selection process, Frances knows she needs a ________ to provide the
minimum qualifications relative to knowledge skills and attitudes needed to perform the job.
A) job description
B) job specification
C) goal-oriented job definition
D) job analysis
Answer: B
Diff: 3
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
98) The company is using ________ selection instruments because once on the job, the
employees with high scores on the instrument outperform employees with low scores on the
instrument.
A) reliable
B) valid
C) fair
D) unfair
Answer: B
Diff: 3
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
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99) To demonstrate its ________, Frances wants a selection process that measures the same thing
consistently.
A) responsibility
B) unreliability
C) reliability
D) validity
Answer: C
Diff: 2
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
100) As part of any assessment of current operations of a job, Frances knows that a ________ is
a basic point of departure. This defines the job and behaviors necessary to perform the job.
A) job description
B) job specification
C) goal-oriented job definition
D) job analysis
Answer: D
Diff: 3
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
Recruitment (Scenario)
Ken's company was expanding. After a period of downsizing, the company had decided to
increase organizational profitability by gaining market share, which meant a need for more
people. As assistant manager of human resources, he was in the process of evaluating what
would be the most effective means of gaining new employees who were qualified, were cost
efficient, and could help maintain the company's commitment to a diversified workforce.
101) Ken should consider ________ as a source of potential candidates because it reaches large
numbers of people and he could get immediate feedback. The problem with this source is that it
may generate many unqualified candidates.
A) the Internet
B) employee referrals
C) college recruiting
D) professional recruiting organizations
Answer: A
Diff: 2
Page Ref: 211
Topic: Identifying and Selecting Competent Employees
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102) Ken might also consider using ________. Even though this source would have little
commitment to Ken's company, it has a good knowledge of industry challenges and
requirements.
A) the Internet
B) employee referrals
C) college recruiting
D) professional recruiting organizations
Answer: D
Diff: 2
Page Ref: 211
Topic: Identifying and Selecting Competent Employees
103) A major source of potential employees is ________, which has a large, centralized pool of
candidates, but tends to only be good for entry-level positions.
A) professional recruiting organizations
B) the Internet
C) the company Web site
D) college recruiting
Answer: D
Diff: 2
Page Ref: 211
Topic: Identifying and Selecting Competent Employees
104) ________ is a positive source of potential job candidates because of the knowledge the
potential candidate may gain about the employer. However, it may not increase the diversity and
mix of employees.
A) Employee referral
B) The Internet
C) College recruiting
D) Professional recruiting organizations
Answer: A
Diff: 3
Page Ref: 211
Topic: Identifying and Selecting Competent Employees
Skill: AACSB: Multicultural and Diversity
21
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
A Sign of the Times (Scenario)
After hearing of the threat for a long time, Aurora's company had finally decided that it must
"right-size," and this meant coming up with a plan for reducing the current size of the workforce
at her manufacturing plant. The job was left to her, and as much as she hated doing this part of
her job, it was necessary for the survival of the company and not just an effort to inflate their
stock price. She also appreciated that her company was willing to try many different routes to
decrease their labor costs, which was consistent with the positive way the company had treated
their employees in the past.
105) Aurora suggests to management that by not filling openings created by voluntary
resignations or normal retirements, the organization may avoid much of the pain associated with
workforce reduction. This option is known as ________.
A) transfers
B) attrition
C) layoffs
D) reduced workweeks
Answer: B
Diff: 2
Page Ref: 212
Topic: Identifying and Selecting Competent Employees
106) Aurora tells management that another option at their disposal for easing the labor-cost
crunch would be ________, which is a temporary involuntary termination that could last a few
days or extend to years.
A) firing
B) layoffs
C) reduced workweeks
D) early retirements
Answer: B
Diff: 2
Page Ref: 212
Topic: Identifying and Selecting Competent Employees
107) Another option that may help would be to have employees share jobs or perform their jobs
on a part-time basis, an option known as ________.
A) firing
B) layoffs
C) reduced workweeks
D) early retirements
Answer: C
Diff: 2
Page Ref: 212
Topic: Identifying and Selecting Competent Employees
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Human Resources Selection (Scenario)
Dennis, the manager of selection in the human resources department, had been asked by Stephen,
his boss, and the vice president of human resources, to review the selection methods their firm
had been using and to recommend methods for future use. It seems that recent hires have not
been working out, and this caused friction between the human resources group and the front-line
managers, who had to utilize the talent sent to them. Additionally, there was also a need to hire
executives in the company, and due to the responsibility these positions carry, the company
wanted to ensure they selected the best possible people. Dennis reviewed written tests as a
selection method.
108) Dennis also reviewed ________, in which applicants are presented with a miniature replica
of a job and are asked to perform tasks central to that job.
A) work sampling
B) written tests
C) job-related interviews
D) intelligence tests
Answer: A
Diff: 1
Page Ref: 212
Topic: Identifying and Selecting Competent Employees
109) For the executive positions, Dennis considered using ________, where candidates go
through two- to four-day exercises that simulate real problems they would confront on the job.
A) assessment centers
B) realistic job previews
C) work sampling
D) visitation tests
Answer: A
Diff: 2
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
110) Since the technique provides little valid information, Dennis has decided to spend less
energy on ________.
A) work sampling
B) written testing
C) job-related interviewing
D) reference checking
Answer: D
Diff: 2
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
23
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The Internal Hire (Scenario)
Wade McKenzie is a new sales manager for The Potomac Group, a healthcare finance consulting
firm, based in the mid-South. Wade was hired from within the firm and he is now supervising
many of the people he had formerly worked with, including two friends with whom he competed
for his new job. Thus, Wade is especially cognizant of potential problems stemming from the
performance evaluation process and is conducting lengthy research on the advantages and
disadvantages of the various methods.
111) Upon starting his new job, Wade met with each of his new charges individually. Prior to this
meeting, Wade took the time to write out a subjective description of what he perceived as each of
his employees' strengths and weaknesses. He also provided each salesperson with a graph
depicting each salesperson's recent objective performance against his or her own past
performance. Wade is utilizing which of the following technique(s)?
A) graphic rating scales
B) written essays
C) multiperson comparison
D) behaviorally anchored rating scales
Answer: B
Diff: 3
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
112) Over the course of the year, Wade had taken some time to compile and write down a series
of anecdotes about his employees. Some reflect particularly superior or ineffective performance,
others are just plain funny. All the anecdotes describe specific behaviors of his employees.
During the national sales meeting, time is provided for a break-out session for each region to
meet separately. Wade presents these stories, not revealing the identity of the salesperson. The
salespeople all enjoy the funny stories. Wade makes a point of commending the superior
performance behaviors. After each of the anecdotes reflecting ineffective behaviors, he asks the
group to suggest ideas for handling the situation differently. This is most reflective of what
appraisal technique?
A) critical incident
B) multiperson comparison
C) written essays
D) 360-degree feedback
Answer: A
Diff: 2
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
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113) Prior to the start of the national sales meeting at the end of January, Wade has scheduled a
video conference with each of his employees in order to conduct their formal performance
appraisal. Wade has considered a variety of performance appraisal methods. Since there are wide
differences in the size and nature of territories within his region, Wade knows that objective
measures of sales performance may not be a fair method of appraisal. He is more interested in
maximizing the potential of each employee and each territory than letting employees know
where they rank in comparison to their peers. Therefore, he has decided to make up a list of
performance factors such as quantity and quality of work, job knowledge, cooperation, and
initiative, and has ranked each employee on each factor using a five-point incremental scale. This
approach is most consistent with what technique?
A) graphic rating scale
B) MBO
C) multiperson comparison
D) 360-degree feedback
Answer: A
Diff: 3
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
114) Wade is a little concerned over constant reports that his sales folks are unreasonably
demanding of sales administration and customer service personnel. Although Wade knows that
one of his salespeople is very difficult to deal with at times, he believes the rest are being painted
with the same brush unfairly. With management's approval, Wade administers a survey to sales
administration and customer service staff, asking them to respond to items that reflect the actual
job behaviors of sales employees from all four regions. The surveys are randomized to eliminate
potential biases. He then compares his region's evaluation against that of the others. This is most
representative of what performance evaluation method?
A) critical incident
B) 360-degree feedback
C) behaviorally anchored rating scales
D) multiperson comparison
Answer: C
Diff: 3
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
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115) After the New Year, Wade schedules a day to travel with each of his sales reps. He presents
them with their bonus checks from the preceding year. He confidentially shares with each of
them a report that he recently received from top management. This report provides a comparison
of regional performance, based upon percentage of quota met, for each quarter and the entire
year. Additionally, individual salespeople are compared on a bar graph with their peers within the
region and corporate-wide, for each quarter and the year. Finally, each employee is ranked on a
percentile scale, indicating his or her relative performance for the year. Wade must provide
management with a report offering reasons for poor performance and suggesting corrective
actions. This is most representative of which performance evaluation technique?
A) MBO
B) critical incident
C) multiperson comparison
D) graphic rating scales
Answer: C
Diff: 2
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
116) Six months into Wade's tenure as regional sales manager, he hosts his first regional sales
meeting. During the course of the meeting, Wade meets individually with his employees and
shows them a chart of their sales numbers for each month compared to their budgeted quota for
the year to date. Additionally, Wade and each employee set mutually agreed-upon, off-budget
goals for the remaining six months of the fiscal year. This is most representative of what
performance evaluation method?
A) 360-degree feedback
B) critical incident
C) MBO
D) multiperson comparisons
Answer: C
Diff: 3
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
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117) In a short essay, explain why human resource management is important to organizational
success.
Answer: Various studies have concluded that an organization's human resources can be a
significant source of competitive advantage. And that's true for organizations around the world,
not just U.S. firms. The Human Capital Index, a comprehensive study of over 2,000 firms in
North America, Europe, and the AsiaPacific region conducted by consulting firm Watson
Wyatt Worldwide concluded that people-oriented HR gives an organization an edge by creating
superior shareholder value. Achieving competitive success through people requires a
fundamental change in how managers think about their employees and how they view the work
relationship. It involves working with and through people and seeing them as partners, not just as
costs to be minimized or avoided. That's what people-oriented organizations do. In addition to
being an important part of organizational strategy and contributing to competitive advantage, an
organization's HRM practices have been found to have a significant impact on organizational
performance. For instance, one study reported that significantly improving an organization's
HRM practices could increase its market value by as much as 30 percent. Another study that
tracked average annual shareholder returns of the publicly traded companies on Fortune's list of
100 best companies to work for found that these companies significantly beat the S&P 500 over
10-year, 5-year, 3-year, and 1-year periods. High-performance work practices lead to both high
individual and high organizational performance. The common thread in these practices seems to
be a commitment to improving the knowledge, skills, and abilities of an organization's
employees, increasing their motivation, reducing loafing on the job, and enhancing the retention
of quality employees while encouraging low performers to leave. Even if an organization
chooses not to implement high-performance work practices, there are certain HRM activities that
must be completed in order to ensure that the organization has qualified people to perform the
work that needs to be doneactivities that comprise the human resource management process.
Diff: 3
Page Ref: 206-207
Topic: The Human Resource Management Process
118) In a short essay, explain how organizations determine future human resource needs.
Answer: Future human resource needs are determined by the organization's mission, goals
and strategies. Demand for employees is a result of demand for the organization's
products or services. Once managers have assessed both current capabilities and future needs,
they
can estimate areas in which the organization will be understaffed or overstaffed.
With this information, managers are ready to proceed to the next step in the HRM
process.
Diff: 2
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
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119) In a short essay, discuss job analysis, job description, and job specification.
Answer: Job analysis is an assessment that defines jobs and the behaviors necessary to perform
them. Information for a job analysis can be gathered through the following methods: directly
observing or filming individuals on the job, interviewing employees individually or in a group,
having employees complete a structured questionnaire, having job "experts" identify a job's
specific characteristics, and having employees record their daily activities in a diary or notebook.
With information from the job analysis, managers develop or revise job descriptions and job
specifications. A job description is a written statement of what a jobholder does, how it is done,
and why it is done. It typically describes job content, environment, and conditions of
employment. A job specification states the minimum qualifications that a person must possess to
perform a given job successfully. It identifies the knowledge, skills, and attitudes needed to do
the job effectively. Both the job description and specification are important documents when
managers begin recruiting and selecting.
Diff: 2
Page Ref: 210
Topic: Identifying and Selecting Competent Employees
120) In a short essay, list five of the six major sources of potential job candidates. Include a
discussion of the advantages and disadvantages of each major source to support your answer.
Answer: a. Internetthe advantages are that this source can reach large numbers of people
and can get immediate feedback. The disadvantage is that it generates many unqualified
candidates.
b. Employee referralsthe advantages include knowledge about the organization may be
provided by current employee and can generate strong candidates because a good referral reflects
on the recommender. A disadvantage is that this source may not increase the diversity and mix of
employees.
c. Internal sourcethe advantages include low cost, builds employee morale, and candidates are
familiar with the organization. The disadvantages include limited supply and this source may not
increase the proportion of employees from protected groups.
d. Company Web sitethe advantages include wide distribution and this source can be targeted
to specific groups. A major disadvantage is that it may generate many unqualified candidates.
e. College recruitingone advantage is that there is a large centralized body of candidates. The
disadvantage is this source is limited to entry-level positions.
f. Professional recruiting organizationsthe advantage is that the candidates have a good
knowledge of industry challenges and requirements. The disadvantage is candidates have little
commitment to the specific organization.
Diff: 2
Page Ref: 211
Topic: Identifying and Selecting Competent Employees
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121) In a short essay, list and discuss five of the six best-known selection devices that managers
can use to reduce, accept, and reject errors when hiring new employees. Include an analysis of
the strengths and weaknesses of each of these selection devices to support your answer.
Answer: a. The Application Formalmost all organizations require job candidates to fill out
an application. It may be only a form on which the person gives his or her name, address, and
telephone number. Or it might be a comprehensive personal history profile, detailing the person's
activities, skills, and accomplishments. Strength: contains relevant biographical data and facts
that can be verified and have been shown to be valid performance measures for some jobs.
Weakness: usually only a couple of items on the form prove to be valid predictors of job
performance and then only for specific jobs.
b. Written teststypical types of written tests include tests for intelligence, aptitude, ability, and
interest. Such tests have been used for years, although their popularity tends to run in cycles.
Today, personality, behavioral, and aptitude assessment tests are popular among businesses.
Strength: intelligence tests are reasonably good predictors for supervisory positions. Weakness:
intelligence and other tested characteristics can be somewhat removed from actual job
performance, thus reducing their validity.
c. Performance-simulation teststhese tests are made up of actual job behaviors. The bestknown performance-simulation tests are work sampling and assessment centers. Work sampling
involves presenting applicants with a miniature model of a job and having them perform a task or
set of tasks that are central to it. Assessment centers are places in which job candidates undergo
performance-simulation tests that evaluate managerial potential. Strength: have proven to be
valid predictors of job performance. Weakness: expensive to create and administer.
d. The Interviewlike the application form, the interview is an almost universal device.
However, the value of the interview as a selection device has been the subject of considerable
debate. Strength: must be structured and well organized to be effective predictors. Weakness:
subject to potential biases, especially if interviews are not well structured and standardized.
e. Background investigationsthese are of two types: verifications of application data and
reference checks. The first type has proved to be a valuable source of selection information
whereas the latter is essentially worthless as a selection tool because applicants' references tend
to be almost universally positive. Strength: verifications of background data are valuable sources
of information. Weakness: reference checks are essentially worthless as a selection tool.
f. Physical examinationsthis device would be useful only for a small number of jobs that have
certain physical requirements. Instead, the physical examination is mostly used for insurance
purposes, as organizations want to be sure that new hires will not submit insurance claims for
injuries or illnesses they had before being hired. Strength: has some validity for jobs with certain
physical requirements. Weakness: must be sure that physical requirements are job related and do
not discriminate.
Diff: 3
Page Ref: 213
Topic: Identifying and Selecting Competent Employees
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122) In a short essay, discuss orientation and the two types of orientation.
Answer: When a person starting a new job is introduced to his or her job and the organization,
this is called orientation. There are two types of orientation. Work unit orientation familiarizes
the employee with the goals of the work unit, clarifies how his or her job contributes to the unit's
goals, and includes an introduction to his or her new coworkers. Organization orientation informs
the new employee about the company's goals, history, philosophy, procedures, and rules. It
should also include relevant human resource policies and maybe even a tour of the facilities.
Many organizations, particularly large ones, have formal orientation programs. Others may use a
more informal orientation program in which, for instance, the manager assigns the new employee
to a senior member of the work group who introduces the new employee to immediate coworkers
and shows him or her locations of the copy room, coffee machine, restrooms, cafeteria, and the
like. And then there are intense orientation programs that cover everything from the culture of
the company to on-the-job training. Managers have an obligation to make the integration of the
new employee into the organization as smooth and as free of anxiety as possible. They need to
openly discuss employee beliefs regarding mutual obligations of the organization and the
employee. It's in the best interests of the organization and the new employee to get the person up
and running in the job as soon as possible. Successful orientation, whether formal or informal,
results in an outsider-insider transition that makes the new member feel comfortable and fairly
well adjusted, lowers the likelihood of poor work performance, and reduces the probability of a
surprise resignation by the new employee only a week or two into the job.
Diff: 2
Page Ref: 215
Topic: Providing Employees with Needed Skills and Knowledge
123) In a short essay, discuss three of the traditional training methods that managers use to
improve employee skill sets.
Answer: a. On-the-job–employees learn how to do tasks simply by performing them,
typically after an initial introduction to the task.
b. Job rotation–employees work at different jobs in a particular area getting exposure to a
variety of tasks.
c. Mentoring and coaching–employees work with an experienced worker who provides
information, support, and encouragement.
d. Experiential exercises–employees participate in role playing, simulations, or other face-toface types of training.
e. Workbooks/manuals–employees refer to training workbooks and manuals for information.
f. Classroom lectures–employees attend lectures designed to convey specific information.
Diff: 2
Page Ref: 216
Topic: Providing Employees with Needed Skills and Knowledge
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
124) In a short essay, list four of the seven major performance appraisal methods.
Answer: a. Written essaya technique in which an evaluator writes out a description of an
employee's strengths and weaknesses, past performance, and potential. The evaluator also makes
suggestions for improvement.
b. Critical incidentsfocuses the evaluator's attention on critical or key behaviors that separate
effective from ineffective job performance. The appraiser writes down anecdotes that describe
what an employee did that was especially effective or ineffective. The advantage to this approach
is that only specific behaviors, not vaguely defined personality traits, are cited.
c. Graphic rating scalesthis method lists a set of performance factors such as quantity and
quality of work, job knowledge, cooperation, initiative, and so forth. The evaluator goes down
the list and rates each employee on each factor using an incremental scale.
d. Behaviorally-anchored scalesthese scales combine major elements from the critical incident
and graphic rating scale approaches. The appraiser rates the employee according to items along a
numerical scale, but the items are examples of actual job behaviors rather than general
descriptions or traits.
e. Multiperson comparisonthis approach compares one person's performance with that of
others.
f. MBOManagement by objectives is also an effective performance appraisal method.
Employees are evaluated on specific goals that were established jointly by them and the
manager.
g. 360-degree feedbacka method utilizing feedback from supervisors, employees, and
coworkers, utilizing information from the full circle of people with whom the manager interacts.
Although it's effective for career coaching and helping a manager recognize his or her strengths
and weaknesses, it's not appropriate for determining pay, promotions, or terminations.
Diff: 2
Page Ref: 218
Topic: Retaining Competent, High-Performing Employees
31
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
125) In a short essay, discuss how workforce diversity is directly affected by recruitment,
selection, and orientation and training.
Answer: a. Recruitmentto improve workforce diversity, managers need to widen their
recruiting net. For example, the popular practice of relying on employee referrals as a source of
job applicants tends to produce candidates who are similar to current employees. Some
organizations, such as Exabyte, of Boulder, Colorado, used this to their advantage in recruiting
diverse employees. The company's positive experience with a hearing-impaired employee led to
hiring other hearing-impaired employees through employee referrals, but not every organization
is able to do this. So managers may have to look for job applicants in places where they might
not have looked in the past. To increase diversity, managers are turning to nontraditional
recruitment sources such as women's job networks, over-50 clubs, urban job banks, disabled
people's training centers, ethnic newspapers, and gay rights organizations. This type of outreach
should enable the organization to broaden its pool of diverse applicants.
b. Selectiononce a diverse set of applicants exists, efforts must be made to ensure that the
selection process does not discriminate. Moreover, applicants need to be made comfortable with
the organization's culture and be made aware of management's desire to accommodate their
needs. For instance, because a small percentage of women apply for Microsoft's technical jobs,
the company makes every effort to hire a high percentage of female applicants and strives to
make sure that these women have a successful experience once they're on the job.
c. Orientation and trainingthe outsider-insider transition is often more challenging for women
and minorities than for white males. Many organizations provide special workshops to raise
diversity awareness issues. For example, at a Kraft manufacturing facility in Missouri, managers
developed an ambitious diversity program reflecting the increased value the organization had
placed on incorporating diverse perspectives. One thing they did was to reward "diversity
champions," individual employees who supported and promoted the benefits of diversity. They
also added diversity goals to employee evaluations, encouraged nontraditional promotions,
sponsored six ethnic meal days annually, and trained over half of the plant's employees in
diversity issues. Some organizations are aggressively pursuing diversity efforts. For instance,
after a gender bias lawsuit cost it $72.5 million, Boeing agreed to change its hiring, pay,
promotion, and complaint investigation processes. Abercrombie and Fitch agreed to hire a vice
president of diversity and hire up to 25 diversity recruiters after it paid $40 million to settle a
class-action lawsuit that accused it of promoting whites at the expense of minorities. Home
Depot has aggressively recruited older workers because of the expertise, skills, and attitudes they
bring to the workplace.
Diff: 3
Page Ref: 220
Topic: Contemporary Issues in Managing Human Resources
Skill: AACSB: Multicultural and Diversity
32
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 7 Foundations of Planning
1) Planning is concerned with how objectives are to be accomplished, not what is to be
accomplished.
Answer: FALSE
Diff: 1
Page Ref: 144
Topic: The What and Why of Planning
2) Planning provides direction to managers and nonmanagers alike.
Answer: TRUE
Diff: 1
Page Ref: 145
Topic: The What and Why of Planning
3) Even without planning, departments and individuals always work together, allowing
organizations to move efficiently toward its goals.
Answer: FALSE
Diff: 2
Page Ref: 145
Topic: The What and Why of Planning
4) Research indicates that nonplanning organizations always outperform planning organizations.
Answer: FALSE
Diff: 2
Page Ref: 145
Topic: The What and Why of Planning
5) Goals are the foundation of organizational planning.
Answer: TRUE
Diff: 2
Page Ref: 146
Topic: Goals and Plans
6) Most businesses have only one objective: to make a profit.
Answer: FALSE
Diff: 1
Page Ref: 146
Topic: Goals and Plans
7) Most companies' goals can be classified as either strategic or financial.
Answer: TRUE
Diff: 2
Page Ref: 146
Topic: Goals and Plans
8) Goals and objectives are two terms used interchangeably in the planning process.
Answer: TRUE
Diff: 2
Page Ref: 146
Topic: Goals and Plans
9) Strategic goals are related to the financial performance of the organization.
Answer: FALSE
Diff: 2
Page Ref: 146
Topic: Goals and Plans
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
10) An organization's real goals are often quite irrelevant to what actually goes on.
Answer: FALSE
Diff: 1
Page Ref: 147
Topic: Goals and Plans
11) Strategic plans can be categorized as long term, directional, and single use
Answer: TRUE
Diff: 1
Page Ref: 147
Topic: Goals and Plans
12) Operational plans encompass a particular operational area of the organization.
Answer: TRUE
Diff: 2
Page Ref: 147
Topic: Goals and Plans
13) Long term used to mean anything over three years, but now it means anything over one year.
Answer: FALSE
Diff: 1
Page Ref: 147
Topic: Goals and Plans
14) Short-term plans are those covering one year or less.
Answer: TRUE
Diff: 1
Page Ref: 147
Topic: Goals and Plans
15) Directional plans have clearly defined objectives.
Answer: FALSE
Diff: 2
Page Ref: 148
Topic: Goals and Plans
16) When uncertainty is high and managers must be flexible in order to respond to unexpected
changes, directional plans are preferable.
Answer: TRUE
Diff: 2
Page Ref: 148
Topic: Goals and Plans
17) An integrated network of goals is sometimes called a means-end chain.
Answer: TRUE
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
18) In MBO, or management by objectives, goals are often less well-defined, giving managers
and employees more flexibility to respond to changing conditions.
Answer: FALSE
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
19) In a typical MBO program, successful achievement of objectives is reinforced by
performance-based rewards.
Answer: TRUE
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
20) An MBO program consists of four elements: loose goals, participative decision making, an
explicit time period, and performance feedback.
Answer: FALSE
Diff: 3
Page Ref: 150
Topic: Setting Goals and Developing Plans
21) Studies of actual MBO programs find mixed results in terms of its effects on overall
employee performance and organizational productivity.
Answer: FALSE
Diff: 3
Page Ref: 150
Topic: Setting Goals and Developing Plans
22) In times of dynamic environmental change, well-defined and precisely developed action
plans enhance organizational performance.
Answer: FALSE
Diff: 2
Page Ref: 151
Topic: Setting Goals and Developing Plans
23) A well-designed goal should be measurable and quantifiable.
Answer: TRUE
Diff: 1
Page Ref: 151
Topic: Setting Goals and Developing Plans
24) Goals that are too easy to accomplish are not motivating and neither are goals that are not
attainable even with exceptional effort.
Answer: TRUE
Diff: 2
Page Ref: 151
Topic: Setting Goals and Developing Plans
25) The second step in goal setting is to determine the goals individually or with input from
others.
Answer: FALSE
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
26) The more the current plans affect future commitments, the longer the time frame for which
managers should plan.
Answer: TRUE
Diff: 3
Page Ref: 152
Topic: Setting Goals and Developing Plans
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
27) Planning is a waste of time in a volatile environment.
Answer: FALSE
Diff: 1
Page Ref: 151
Topic: Setting Goals and Developing Plans
28) A major argument against formal plans is that they can't replace intuition and creativity.
Answer: TRUE
Diff: 1
Page Ref: 153
Topic: Contemporary Issues in Planning
29) One criticism of planning is that it's not enough for managers just to plan.
Answer: TRUE
Diff: 2
Page Ref: 154
Topic: Contemporary Issues in Planning
30) In today's dynamic business environment, successful firms recognize that planning is an
ongoing process, not a tablet of rules cast in stone.
Answer: TRUE
Diff: 2
Page Ref: 154
Topic: Contemporary Issues in Planning
31) Managers must be able to follow through with plans even if conditions change.
Answer: FALSE
Diff: 2
Page Ref: 154
Topic: Contemporary Issues in Planning
32) Effective planning in dynamic environments means flattening the organizational hierarchy.
Answer: TRUE
Diff: 2
Page Ref: 155
Topic: Contemporary Issues in Planning
33) Planning involves defining the organization's goals, establishing an overall strategy for
achieving those goals, and developing a comprehensive set of plans ________.
A) as to which shift will perform what work functions
B) to determine which manager will be in charge of which department
C) for organizational work activities
D) to establish the quality and quantity of work to be accomplished
Answer: C
Diff: 3
Page Ref: 144
Topic: The What and Why of Planning
34) In formal planning, ________.
A) specific goals covering a period of years are defined
B) specific goals are developed and not written
C) general goals are developed and not written
D) general goals covering an unspecified period of years are defined
Answer: A
Diff: 1
Page Ref: 144
Topic: The What and Why of Planning
4
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
35) Formal planning involves which of the following aspects?
A) developing general objectives
B) planning for up to one year
C) writing objectives
D) distributing the plan to all managerial employees
Answer: C
Diff: 2
Page Ref: 144
Topic: The What and Why of Planning
36) The effect of planning on managers is that it forces them to ________.
A) react to change
B) consider the impact of change
C) respond indiscriminately
D) develop bureaucratic response models
Answer: B
Diff: 2
Page Ref: 145
Topic: The What and Why of Planning
37) Planning can't eliminate change. Managers plan in order to ________.
A) be prepared for when changes in management at the top occurs
B) anticipate changes and develop the most effective response to changes
C) decide what needs to be done when a change in environments happen
D) have the appropriate materials available when the demand for them comes about
Answer: B
Diff: 2
Page Ref: 145
Topic: The What and Why of Planning
38) Planning gives direction, reduces the impact of change, minimizes waste and redundancy,
and ________.
A) establishes the workloads for each of the departments
B) sets the basis used for promotion of individuals within the organization
C) eliminates departments that are not needed within the plan
D) sets the standards used in controlling
Answer: D
Diff: 2
Page Ref: 145
Topic: The What and Why of Planning
39) Studies of performance in organizations that plan have reached ________.
A) somewhat negative conclusions regarding the benefits of planning
B) generally mixed conclusions regarding the benefits of planning
C) generally negative conclusions regarding the benefits of planning
D) generally positive conclusions regarding the benefits of planning
Answer: D
Diff: 3
Page Ref: 145
Topic: The What and Why of Planning
5
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
40) The quality of the planning process and the appropriate implementation of the plans probably
________.
A) don't contribute to high performance nearly as much as the extent of planning
B) contribute more to high performance than does the extent of planning
C) contribute less to high performance than does the extent of planning
D) should be studied more to factually determine which contributes the most
Answer: B
Diff: 3
Page Ref: 145
Topic: The What and Why of Planning
41) In studies in which formal planning did not lead to higher performance, ________.
A) the external environment often was the culprit
B) management's execution of the plans was most often the reason for failure
C) employees' implementation of the plans was the primary reason for failure
D) lack of communication was most often the reason for failure
Answer: A
Diff: 2
Page Ref: 145
Topic: The What and Why of Planning
42) Governmental regulations, powerful labor unions, and other critical environmental forces
constrain managers' options and ________ the impact of planning on an organization's
performance.
A) reduce
B) increase
C) neutralize
D) don't affect
Answer: A
Diff: 3
Page Ref: 145
Topic: The What and Why of Planning
43) Planning is often called the primary management function because it ________.
A) offers some basis for future decision making
B) creates the vision for the organizational members to work toward
C) establishes the basis for all the other functions
D) sets the tone for the organizational culture
Answer: C
Diff: 3
Page Ref: 146
Topic: Goals and Plans
44) Planning involves two important elements: ________.
A) goals and decisions
B) goals and plans
C) plans and decisions
D) goals and actions
Answer: B
Diff: 2
Page Ref: 146
Topic: Goals and Plans
6
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
45) Goals are objectives, ________.
A) and we use the two terms interchangeably
B) but goals are long term, and objectives are short term
C) but goals are used by top management, and objectives are used by first-level management
D) but goals are used in reference to profits, and objectives are used in reference to production
output
Answer: A
Diff: 1
Page Ref: 146
Topic: Goals and Plans
46) Plans are documents that outline how goals are going to be met and ________.
A) define which department has what responsibilities needed to accomplish the goals
B) tell what materials and processes are necessary to fulfill the goals
C) identify how much capital is required to complete the goals
D) describe resource allocations, schedules, and other necessary actions to accomplish the goals
Answer: D
Diff: 2
Page Ref: 146
Topic: Goals and Plans
47) ________ can evaluate whether an organization is successful.
A) A goal is the only measure that
B) No single measure
C) Plans are also a measure that
D) Stakeholders are the only groups that
Answer: B
Diff: 2
Page Ref: 146
Topic: Goals and Plans
48) When managers emphasize one goal, they ________.
A) assure that the one goal will be accomplished even above the established level
B) ignore other goals that must also be reached if long-term success is to achieved
C) make the goal easier to be accomplished by all organizational members
D) deny the organizational members the opportunity to grow and develop
Answer: B
Diff: 3
Page Ref: 146
Topic: Goals and Plans
49) Using a single objective can result in unethical practices because managers ________.
A) want to satisfy the stockholders of the organization
B) will manipulate the outcomes reported to assure that the one objective is achieved
C) will ignore other important parts of their jobs in order to look good on that one measure
D) will use overtime to accomplish that single objective without reporting it
Answer: C
Diff: 3
Page Ref: 146
Topic: Goals and Plans
7
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
50) Official statements of what an organization says and what it wants its various stakeholders to
believe are referred to as ________.
A) real goals
B) stated goals
C) committed goals
D) comprehensive goals
Answer: B
Diff: 2
Page Ref: 146
Topic: Goals and Plans
51) The conflict in stated goals exists because organizations respond to a variety of ________.
A) stakeholders
B) external environments
C) governmental regulations
D) stockholders
Answer: A
Diff: 2
Page Ref: 146
Topic: Goals and Plans
52) Which of the following is true concerning an organization's stated objectives?
A) Organizations issue identical objectives to all constituents.
B) Organizations typically have internal and external sets of objectives.
C) Organizations may issue different objectives to stockholders, customers, employees, and the
public.
D) Stated objectives are usually in line with short-term actions.
Answer: C
Diff: 2
Page Ref: 146
Topic: Goals and Plans
53) What should a person do to understand what the real objectives of the organization are?
A) observe organizational members' actions
B) attend a stockholders' annual meeting
C) read their annual report
D) watch television news reports
Answer: A
Diff: 2
Page Ref: 147
Topic: Goals and Plans
54) The most common ways to describe organizational plans are by their frequency of use, time
frame, specificity, and ________.
A) quantifiability
B) flexibility
C) breadth
D) attainability
Answer: C
Diff: 1
Page Ref: 147
Topic: Goals and Plans
8
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
55) When we categorize plans as being directional versus specific, we are categorizing them by
________.
A) breadth
B) specificity
C) frequency of use
D) depth
Answer: B
Diff: 1
Page Ref: 147
Topic: Goals and Plans
56) When we categorize plans as being single-use versus standing, we categorize them by
________.
A) breadth
B) specificity
C) frequency of use
D) time frame
Answer: C
Diff: 1
Page Ref: 147
Topic: Goals and Plans
57) Strategic plans tend to cover a longer period of time than operational goals and also
________.
A) cover a more narrow view of the organization
B) cover the financial projections of the planning period
C) cover a broader view of the organization
D) include an estimate of the profits that the stockholder can anticipate as dividends
Answer: C
Diff: 2
Page Ref: 147
Topic: Goals and Plans
58) As organizational environments have become more uncertain, ________.
A) organizations are having to make longer term plans
B) organizations have to resist the uncertainties to keep the plans moving toward the objectives
C) organizations have to request that the government pass more legislation restricting the amount
of uncertainty
D) the definition of long term has changed
Answer: D
Diff: 2
Page Ref: 147
Topic: Goals and Plans
59) Specific plans are clearly defined and ________.
A) allow managers to interpret their "flexibility" on their own
B) leave no room for interpretation
C) give the managers authority to interpret the plans for their area of responsibility
D) keep the stakeholders informed of the organization's objectives
Answer: B
Diff: 2
Page Ref: 147
Topic: Goals and Plans
9
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
60) A state legislative plan that calls for a 2.45 percent increase in tobacco sales tax for the next
2 years would be considered what type of plan?
A) strategic
B) operational
C) specific
D) directional
Answer: C
Diff: 2
Page Ref: 147
Topic: Goals and Plans
61) Directional plans ________.
A) have clearly defined objectives
B) identify general guidelines
C) meet the needs of a unique situation
D) last for 3-5 years
Answer: B
Diff: 2
Page Ref: 148
Topic: Goals and Plans
62) The flexibility inherent in directional plans must be weighed against the ________.
A) gain of a shorter planning period provided by specific plans
B) gain of a longer planning period provided by specific plans
C) loss of clarity provided by specific plans
D) loss of a shorter planning period provided by specific plans
Answer: C
Diff: 1
Page Ref: 148
Topic: Goals and Plans
63) ________ is a one-time plan specifically designed to meet the needs of a unique situation.
A) A multipurpose plan
B) A strategic plan
C) An operational plan
D) A single-use plan
Answer: D
Diff: 1
Page Ref: 148
Topic: Goals and Plans
64) Standing plans are ongoing plans that provide ________.
A) general directions of how to accomplish an identifiable task
B) stakeholders with identifiable goals that the organization will always strive to achieve
C) the stockholders with identifiable goals that the organization will always strive to achieve
D) guidance for activities performed repeatedly
Answer: D
Diff: 2
Page Ref: 148
Topic: Goals and Plans
10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
65) A city's policy concerning skateboarding on downtown sidewalks that provides guidance for
police action would be considered what type of plan?
A) standing
B) contingency
C) directional
D) single-use
Answer: A
Diff: 2
Page Ref: 148
Topic: Goals and Plans
66) Goals provide the direction for all management decisions and actions and form the
________.
A) profit basis that the organizations will accomplish for stockholders
B) desired outcomes that the organizational members will achieve
C) basis for the sharing of profits with the employees at the end
D) criteria against which actual accomplishments are measured
Answer: D
Diff: 2
Page Ref: 149
Topic: Setting Goals and Developing Plans
67) With traditional goal setting, the goals are set at the top level of management and ________.
A) then they become the responsibility of first-line management to achieve the goals
B) then they are broken down into subgoals for each level of the organization
C) all the efforts to achieve the goals are directed by top management to ensure that they are
achieved
D) then they are delegated to the next lower level to be achieved
Answer: B
Diff: 2
Page Ref: 149
Topic: Setting Goals and Developing Plans
68) With traditional goal setting, the assumption is that ________.
A) top managers know what is best because they see the "big picture"
B) top managers are unfamiliar with setting goals, so lower-level managers are assigned to do the
task
C) lower-level managers understand more of what needs to be accomplished
D) lower-level managers are incapable of setting goals
Answer: A
Diff: 2
Page Ref: 149
Topic: Setting Goals and Developing Plans
69) With traditional goal setting, employees' work efforts at their respective levels and work
areas are geared to meet the goals ________.
A) so that the top management will be retained in their position
B) so that their immediate supervisors will be retained in their position
C) that have been assigned in their specific areas of responsibility
D) within the shortest amount of time possible
Answer: C
Diff: 2
Page Ref: 149
Topic: Setting Goals and Developing Plans
11
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
70) What happens to traditional goals as they make their way down from top management to
lower levels?
A) They lose clarity and unity.
B) They unite the workforce.
C) Lower-level managers must continually revise and correct them.
D) They purposely remain vague and nonspecific.
Answer: A
Diff: 2
Page Ref: 149
Topic: Setting Goals and Developing Plans
71) When the hierarchy of organizational goals is clearly defined, it forms a ________.
A) hierarchical-link chain
B) means-ends chain
C) weakest-link chain
D) level-level chain
Answer: B
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
72) Management by objectives (MBO) is a management system in which the first step is setting
specific performance goals that are ________.
A) established that can be easily accomplished
B) jointly determined by employees and their managers
C) determined by top management with clarity so that the objectives are clear to even the most
incompetent employee
D) developed in such a manner that the employees are self-directed and do not need supervision
Answer: B
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
73) What is the first step in a typical MBO program?
A) Major objectives are allocated among divisional and departmental units.
B) Unit managers collaboratively set specific objectives for their units with their managers.
C) The organization's overall objectives and strategies are formulated.
D) Action plans are specified and agreed upon by managers and employees.
Answer: C
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
74) In the MBO system, ________.
A) objectives are determined by management
B) goals are only reviewed at the time of completion
C) goals are used as controls
D) progress toward objectives is periodically reviewed
Answer: D
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
12
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
75) A well-designed goal should be ________.
A) short and very specific about expected outcomes
B) written in terms of outcomes rather than actions
C) identifiable to even the first-line supervisors
D) specific and within a manageable time frame
Answer: B
Diff: 2
Page Ref: 151
Topic: Setting Goals and Developing Plans
76) A well-designed goal should be ________.
A) discussed at orientation
B) nearly unattainable, so that even if the unit or employee misses the goal, performance is still
very high
C) easy to achieve
D) clear as to a time frame
Answer: D
Diff: 2
Page Ref: 151
Topic: Setting Goals and Developing Plans
77) The process of writing goals ________.
A) forces people to think them through
B) is too time consuming
C) is useless
D) inspires innovative concepts
Answer: A
Diff: 2
Page Ref: 151
Topic: Setting Goals and Developing Plans
78) What do written goals become?
A) old and useless
B) inflexible and general
C) visible and tangible
D) personal and collective
Answer: C
Diff: 2
Page Ref: 151
Topic: Setting Goals and Developing Plans
79) What is the purpose of an organization called?
A) the organization's action plan
B) the organization's mission
C) the organization's vision
D) the organization's contingency plan
Answer: B
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
80) When setting goals, what should a manager do after writing down the goals and
communicating them to all who need to know?
A) determine the goals individually or with input from others
B) evaluate available resources
C) review results and whether goals are met
D) review the organization's mission
Answer: C
Diff: 2
Page Ref: 151
Topic: Setting Goals and Developing Plans
81) Three contingency factors that affect planning are level in the organization, degree of
environmental uncertainty, and ________.
A) length of future commitments
B) quantity of future commitments
C) frequency of future commitments
D) enforceability of future commitments
Answer: A
Diff: 2
Page Ref: 151
Topic: Setting Goals and Developing Plans
82) ________ planning dominates managers' planning efforts at lower levels of the organization.
A) Strategic
B) Tactical
C) Operational
D) Functional
Answer: C
Diff: 1
Page Ref: 151
Topic: Setting Goals and Developing Plans
83) The commitment concept means that plans should extend far enough to meet those
commitments ________.
A) as quickly as possible
B) while the resources are available
C) with the stakeholders and make it appear that the organization is really committed
D) made when the plans were developed
Answer: D
Diff: 2
Page Ref: 152
Topic: Setting Goals and Developing Plans
84) Planning for too long or too short a time period ________.
A) is effective planning
B) is inefficient and ineffective
C) is the concept of commitment
D) depends on the organization
Answer: B
Diff: 3
Page Ref: 152
Topic: Setting Goals and Developing Plans
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
85) As organizations expand and update their computing technology, they are ________.
A) committed to whatever future expenses are generated by that plan
B) in a state of high environmental uncertainty
C) in a state of low environmental uncertainty
D) relying on lower level management to do the planning
Answer: A
Diff: 2
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Topic: Setting Goals and Developing Plans
86) How an organization plans can be best understood by looking at ________.
A) the goals set by the organization's planners
B) who does the planning
C) the flexibility of the organization's plans
D) the priority of the goals
Answer: B
Diff: 1
Page Ref: 152
Topic: Setting Goals and Developing Plans
87) In the traditional approach to planning, planning was done entirely by top-level managers
who were often assisted by ________.
A) business level managers
B) functional level managers
C) a mixture of managers from the line, functional, and business level
D) a group of planning specialists
Answer: D
Diff: 1
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Topic: Setting Goals and Developing Plans
88) What is defined as a group of planning specialists whose sole responsibility was helping to
write the various organizational plans?
A) traditional planning specialists
B) organizational planning department
C) formal planning department
D) mission writers
Answer: C
Diff: 1
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Topic: Setting Goals and Developing Plans
89) When can the traditional top-down approach to planning be effective?
A) only if the documents look impressive
B) only if the documents are prepared for the corporate planning staff
C) only if the planning involves lower level management
D) only if managers understand that they must create usable documents that members actually
use
Answer: D
Diff: 2
Page Ref: 152
Topic: Setting Goals and Developing Plans
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
90) When organizational members are more actively involved in planning, they see that the plans
________.
A) are not as important as management makes them out to be
B) are how the company is going to be judged by the stockholders
C) are more than just something written down on paper
D) stated to stakeholders are the real plans that the organization desires to achieve
Answer: C
Diff: 2
Page Ref: 153
Topic: Setting Goals and Developing Plans
91) Managers who continue to do the things required to achieve the original goals of a plan
________.
A) are following their intuition
B) are demonstrating their ability to follow a flexible and specific plan
C) are acting responsibly
D) may not be able to cope with a changed environment
Answer: D
Diff: 2
Page Ref: 153
Topic: Contemporary Issues in Planning
92) What is a frequently cited criticism of formal planning?
A) Plans can't be developed for a dynamic environment.
B) Formal planning is too time consuming, given the dynamism in modern business
environments.
C) Formal planning creates extra, often redundant levels of hierarchy within the organization.
D) Formal planning works well only for large, diversified companies.
Answer: A
Diff: 2
Page Ref: 153
Topic: Contemporary Issues in Planning
93) Successful organizations are typically the result of what?
A) flexibility
B) formal planning efforts
C) innovative vision
D) mechanical analysis
Answer: C
Diff: 3
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Topic: Contemporary Issues in Planning
94) Visions have a tendency to ________ as they evolve.
A) become formalized
B) fail
C) generate more creativity
D) trap employees in a certain mindset
Answer: A
Diff: 3
Page Ref: 153
Topic: Contemporary Issues in Planning
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
95) Formal planning focuses managers' attention on what?
A) the changing future
B) today's competition
C) tomorrow's survival
D) yesterday's successes and failures
Answer: B
Diff: 2
Page Ref: 154
Topic: Contemporary Issues in Planning
96) What argument against formal planning indicates that confidence in a plan is dangerous?
A) Just planning isn't enough.
B) Formal planning reinforces success, which may lead to failure.
C) Planning may create rigidity.
D) Plans cannot be developed for a dynamic environment.
Answer: B
Diff: 1
Page Ref: 154
Topic: Contemporary Issues in Planning
97) A wireless networking technology called Wi-Fi that links together information devices is
________.
A) revolutionizing all kinds of industries
B) making organizational planning much easier
C) complicating the planning process, but will be improving communications
D) an integral component of planning for the Fortune 500 companies
Answer: A
Diff: 3
Page Ref: 154
Topic: Contemporary Issues in Planning
98) In an uncertain environment, managers want to develop ________ plans.
A) general and flexible
B) specific but flexible
C) formal
D) contingency
Answer: B
Diff: 2
Page Ref: 154
Topic: Contemporary Issues in Planning
99) Formal plans serve as a roadmap although the destination may be changing constantly due to
________.
A) dynamic market conditions
B) political changes
C) management changes
D) employment makeup
Answer: A
Diff: 3
Page Ref: 154
Topic: Contemporary Issues in Planning
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
100) It is ________ formal planning efforts when the environment is highly uncertain.
A) not as important to continue
B) important to switch to directional planning and cease
C) necessary to cease
D) important to continue
Answer: D
Diff: 3
Page Ref: 155
Topic: Contemporary Issues in Planning
101) Why does the persistence in planning efforts contribute to significant performance
improvement?
A) After so many tries, managers have to hit on a success.
B) If managers wear down the employees enough, their performance will improve.
C) The quality of managers' planning improves when they continue to do it.
D) Managers discover that their focus should be on the future instead of present.
Answer: C
Diff: 2
Page Ref: 155
Topic: Contemporary Issues in Planning
102) The organizational hierarchy becomes flattened as the responsibility for establishing goals
and developing plans is ________.
A) moved to the middle organizational levels
B) shoved to the lowest organizational levels
C) shifted to a formal planning department
D) more the work of the financial department
Answer: B
Diff: 2
Page Ref: 155
Topic: Contemporary Issues in Planning
It's Academic (Scenario)
You are the academic dean for a small liberal arts college. The university president has asked
you to develop a plan for the college. She wants the plan to cover the next five years. She wants
it to be as specific as possible, but it should leave some room for flexibility.
103) Because your plan will have specific objectives covering a period of five years along with
specific action plans for achieving these objectives, your plan could best be described as
________.
A) contractual
B) formal
C) defined
D) standard
Answer: B
Diff: 2
Page Ref: 144
Topic: The What and Why of Planning
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
104) The president has expressed concern regarding the impact of planning on the ability of the
organization to respond to emerging changes in the higher education environment, such as
distance learning and corporate universities. You should tell the president that planning
________.
A) forces managers to look at the present
B) forces managers to anticipate change
C) eliminates the consideration of the impact of change
D) increases uncertainty
Answer: B
Diff: 1
Page Ref: 145
Topic: The What and Why of Planning
Retail Planning (Scenario)
Mr. Tyler Nall is president and CEO of a retail chain that is about to begin operations in
numerous major cities across the United States. The stores will sell home furnishings that are
considered moderately priced for the average-income buyer. During the last few months he has
been working to lay out directions for the managers of the stores. Mr. Nall and his vice
presidents have decided that each store should have sales equal to or greater than $100 per square
foot per day. To attract an adequate number of customers, the store should be well maintained
both inside and out.
105) The primary task that Mr. Nall and the vice presidents have been performing during the last
couple of months is known as ________.
A) laying out ideas
B) making plans
C) establishing networks
D) designing the stores
Answer: B
Diff: 1
Page Ref: 146
Topic: Goals and Plans
106) The statement that each store should have sales equal to or greater than $100 per square
foot per day is an example of ________.
A) a specific plan
B) a directional plan
C) a goal
D) management by objectives
Answer: C
Diff: 2
Page Ref: 146
Topic: Goals and Plans
19
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
107) The statement that all stores should be well maintained both inside and out is an example of
a ________.
A) directional plan
B) specific plan
C) stated goal
D) real goal
Answer: A
Diff: 3
Page Ref: 148
Topic: Goals and Plans
A Business Plan (Scenario)
Imagine that you are the owner of a small company that sells typewriters, business equipment,
and computer hardware. You employ about 40 people. You know that the organization needs to
move in a different direction, and you want to set some long-term goals for the company. You
want to write a plan that will cover the next three years only, knowing that business needs
change somewhat frequently. Your goal is to write a plan that provides direction but does not
contain extremely well-defined, potentially restrictive objectives.
108) The fact that your plan covers three years suggests that your plan is most consistent with
what type of plan?
A) specific
B) long term
C) operational
D) strategic
Answer: D
Diff: 2
Page Ref: 147
Topic: Goals and Plans
109) Your plan will cover the entire organization. This characteristic is most consistent with
what type of plan?
A) specific
B) long term
C) standard
D) strategic
Answer: D
Diff: 2
Page Ref: 147
Topic: Goals and Plans
20
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
E-Biz Dreams (Scenario)
Robert Downs has just completed a master of science degree in computer science at Major State
University. He now wants to begin a new Internet business selling his services as a Web site
maker for companies in his home city, St. Louis. He estimates that, if his business idea is a
success, within one year he will be employing at a minimum 10 programmers and 2 analysts.
110) To make his business successful, Robert will first have to develop what type of plan?
A) operational
B) specific
C) directional
D) strategic
Answer: D
Diff: 2
Page Ref: 147
Topic: Goals and Plans
111) To ensure that the organization's objectives are clearly defined and do not leave room for
interpretation, he will have to develop what type of plan?
A) operational
B) specific
C) directional
D) strategic
Answer: B
Diff: 2
Page Ref: 147
Topic: Goals and Plans
112) To provide the programmers and analysts general guidelines about the efficiencies that are
desired, he will have to develop what type of plan?
A) operational
B) specific
C) directional
D) strategic
Answer: C
Diff: 2
Page Ref: 148
Topic: Goals and Plans
21
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Retail Planning Part II (Scenario)
Mr. Tyler Nall is president and CEO of a retail chain that is about to begin operations in
numerous major cities across the United States. The stores will sell home furnishings that are
considered moderately priced for the average-income buyer. During the last few months he has
been working to lay out directions for the managers of the stores. Mr. Nall and his vice
presidents have decided that each store should have sales equal to or greater than $100 per square
foot per day.
113) Mr. Nall's goal for each store of $100 per square foot per day has several of the
characteristics of a well-designed goal. First, it is written in terms of outcomes and not actions.
Second, this goal is measurable and quantifiable. What else can Mr. Nall do to improve the
design of this goal?
A) Specify a time frame for achieving this goal.
B) Ensure that the goal is attainable.
C) Communicate this goal to every single employee of the organization.
D) Make certain it will be achieved easily.
Answer: A
Diff: 2
Page Ref: 151
Topic: Goals and Plans
114) When setting goals for the plan, what should Mr. Nall do after he evaluates available
resources?
A) Review the organization's mission.
B) Write down the goals and communicate them to all who need to know.
C) Review the results and whether goals are being met.
D) Determine the goals individually or with input from others.
Answer: D
Diff: 1
Page Ref: 150
Topic: Goals and Plans
Planning Factors (Scenario)
As vice president of a local manufacturer, you are interested in developing a new organizational
plan. However, you are not sure who you should assign to the varying planning tasks. At the
same time, several other issues that could deeply affect your business are pending, including
rising interest rates and the potential formation of a new employee union. You must also consider
your firm's contracts with large vendors that extend five years into the future.
115) For the most part, you should assign the operational planning activities to ________.
A) line staff
B) top managers
C) lower-level managers
D) middle managers
Answer: C
Diff: 2
Page Ref: 151
Topic: Setting Goals and Developing Plans
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
116) Which plans should you and other top management members be developing?
A) operational
B) specific
C) overall
D) strategic
Answer: D
Diff: 2
Page Ref: 151
Topic: Setting Goals and Developing Plans
A-Z Planning (Scenario)
Organizations ABC and XYZ are both in the same industry and vie for the same set of customers
in the marketplace. At ABC, the plans are made at the top level of management each year and
then are formulated for and announced to each of the mid-level and first-level managers. At
XYZ, the plans are made at the top, and then those managers meet with their subordinates at the
next level and mutually agreed-to goals are established with them. The mid-level managers then
meet with their first-level managers and mutually agreed-to goals are established with them.
Finally, the first-level managers meet with each of their employees and mutually agreed-to goals
are established with them.
117) The goals setting approach used at the ABC organization is ________.
A) standing
B) directional
C) specific
D) traditional
Answer: D
Diff: 2
Page Ref: 149
Topic: Setting Goals and Developing Plans
118) Assuming XYZ's hierarchy of goals is clearly defined, the result is ________.
A) unity of command
B) a means-end chain
C) management by objectives
D) formal planning department
Answer: B
Diff: 2
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Topic: Setting Goals and Developing Plans
119) XYZ also follows a management by objectives (MBO) approach to goal setting. The
managers and employees specify and agree upon ________, which define how objectives are to
be achieved.
A) action plans
B) periodic reviews
C) performance-based rewards
D) objectives and strategies
Answer: A
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
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120) Which organization is more likely to have higher employee performance and organizational
productivity?
A) Neither, as they are both in the same industry and facing the same environments.
B) Organization ABC, because the plans are formulated by management for each level of the
organization.
C) Organization XYZ, because the employees participated in the planning process and know
specifically what their objectives are.
D) Neither, because the hierarchy of organizational goals is clearly defined at each level.
Answer: C
Diff: 2
Page Ref: 149-150
Topic: Setting Goals and Developing Plans
The State Road 7 Collaborative (Scenario)
The South Florida Regional Planning Council convened a group of stakeholders, including the
Florida Department of Transportation and the Department of Community Affairs, who are
interested in working together on improving State Road 7. David Dahlstrom is the senior planner
for the South Florida Regional Planning Council. Mr. Dahlstrom successfully obtained a
technical assistance grant. The intent is to organize the 15 small communities along State Road 7
into an intergovernmental unit. All of the communities will share the same visioning processes of
mission, objectives, and tasks. Mr. Dahlstrom is now charged with developing a strategic plan
for this group, called the State Road 7 Collaborative.
121) First, Mr. Dahlstrom must determine the goals he wants to achieve. To do so, he must
follow a series of steps for goal setting. The first step in setting goals for this new group should
be to ________.
A) formally establish the organization's mission
B) evaluate available resources
C) determine the goals individually and then ask for input from others
D) request input from others and then formulate specific goals
Answer: A
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
122) While each community in the State Road 7 Collaborative maintains its identity and
independence, Mr. Dahlstrom believes that the leverage of multi-governmental applications will
ultimately secure more major funding in the future. However, due to the intergovernmental
nature of the organization, Mr. Dahlstrom, although in charge of the collaborative, wields little
direct power over any community member individually. Which contingency factor best
represents Mr. Dahlstrom's situation?
A) level in the organization
B) time frame of future commitments
C) environmental uncertainty
D) measurability of the goal
Answer: A
Diff: 3
Page Ref: 151
Topic: Setting Goals and Developing Plans
24
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
123) Dahlstrom told the Collaborative's members that the more current plans affect future
commitments, the longer the time frame is for which managers must plan. This concept is also
known as the ________.
A) first principle of planning
B) commitment concept
C) length of future commitments
D) degree of environmental uncertainty
Answer: B
Diff: 1
Page Ref: 152
Topic: Setting Goals and Developing Plans
The Dynamic Environment (Scenario)
A group of shareholders at Company EZ has strongly suggested that the firm update its planning
practices to include more participative decision making and greater feedback to employees.
124) Company EZ's business is technology-related and the environment is very dynamic.
Management at Company EZ argues that formal planning ________.
A) is not as effective in static environments
B) ignores the employees
C) can't be developed for dynamic environments
D) focuses managers' attention on tomorrow's survival instead of today's competition
Answer: C
Diff: 2
Page Ref: 153
Topic: Contemporary Issues in Planning
125) Because the managers at Company EZ work in such an uncertain environment, it is
essential that they develop a plan. What will they have to do to plan in such an environment?
A) train their employees in setting goals and establishing plans
B) recognize that their plan must be general
C) be determined to continue with their plan even if the conditions change
D) make their plans as rigid as possible
Answer: A
Diff: 2
Page Ref: 155
Topic: Contemporary Issues in Planning
126) In a short essay, define planning and discuss the characteristics of formal planning as it is
used in various organizations.
Answer: Planning involves defining the organization's goals, establishing an overall strategy for
achieving those goals, and developing a comprehensive set of plans to integrate and coordinate
organizational work. It is concerned with both ends and means. In formal planning, specific
goals covering a period of years are defined. These goals are written and known to organizational
members.
Diff: 1
Page Ref: 144
Topic: The What and Why of Planning
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
127) In a short essay, list and discuss the four reasons for planning.
Answer: a. Planning establishes coordinated effort. It gives direction to managers and
nonmanagers alike. When employees know where the organization or work unit is going and
what they must contribute to reach goals, they can coordinate their activities, cooperate with each
other, and do what it takes to accomplish those goals. Without planning, departments and
individuals might be working at cross-purposes, preventing the organization from moving
efficiently toward its goals.
b. Planning reduces uncertainty by forcing managers to look ahead, anticipate change, consider
the impact of change, and develop appropriate responses. It also clarifies the consequences of
actions managers might take in response to change. Even though planning can't eliminate
change, managers plan in order to anticipate changes and develop the most effective response to
them.
c. Planning reduces overlapping and wasteful activities. When work activities are coordinated
around established plans, wasted time and resources and redundancy can be minimized.
Furthermore, when means and ends are made clear through planning, inefficiencies become
obvious and can be corrected or eliminated.
d. Planning establishes goals or standards that are used in controlling. If managers are unsure of
what they are trying to accomplish, they will be unable to determine whether or not the goal has
actually been achieved. In planning, goals and plans are developed. Then, through controlling,
actual performance is compared against the goals, significant deviations are identified, and
necessary corrective action is taken. Without planning, there would be no way to control.
Diff: 2
Page Ref: 145
Topic: The What and Why of Planning
128) In a short essay, explain how strategic plans and operational plans differ in terms of time
horizon and scope?
Answer: Strategic plans often focus beyond three years in the future; operational plans focus on
twelve months or less. The scope of strategic plans is normally applied to an entire organization;
the scope of operational plans is usually centered on departments or smaller units of the
organization.
Diff: 2
Page Ref: 147
Topic: Goals and Plans
26
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
129) In a short essay, define the following types of plans: strategic plans, operational plans, longterm plans, short-term plans, specific plans, directional plans, single-use plans, and standing
plans.
Answer: Strategic plans are plans that apply to the entire organization, establish the
organization's overall goals, and seek to position the organization in terms of its environment.
Plans that specify the details of how the overall goals are to be achieved are called operational
plans. Strategic plans tend to cover a longer time frame and a broader view of the organization.
Strategic plans also include the formulation of goals whereas operational plans define ways to
achieve the goals. Also, operational plans tend to cover shorter time periods. We define longterm plans as those with a time frame beyond three years. We define short-term plans as those
covering one year or less. Specific plans are plans that are clearly defined and that leave no room
for interpretation. They have clearly defined objectives. There's no ambiguity and no problem
with misunderstanding. The drawbacks of specific plans are that they require clarity and a sense
of predictability that often do not exist. When uncertainty is high and managers must be flexible
in order to respond to unexpected changes, directional plans are preferable. Directional plans are
flexible plans that set out general guidelines. They provide focus but don't lock managers into
specific goals or courses of action. However, the flexibility inherent in directional plans must be
weighed against the loss of clarity provided by specific plans. A single-use plan is a one-time
plan specifically designed to meet the needs of a unique situation. In contrast, standing plans are
ongoing plans that provide guidance for activities performed repeatedly. Standing plans include
policies, rules, and procedures.
Diff: 3
Page Ref: 147-148
Topic: Goals and Plans
130) In a short essay, define management by objectives (MBO) and list four elements of this
type of goal setting.
Answer: Management by objectives (MBO) is a management system in which specific
performance goals are jointly determined by employees and their managers, progress toward
accomplishing these goals is periodically reviewed, and rewards are allocated on the basis of this
progress. Rather than using goals only as controls, MBO uses them to motivate employees as
well. Management by objectives consists of four elements: goal specificity, participative decision
making, an explicit time period, and performance feedback. Its appeal lies in its focus on
employees working to accomplish goals they have had a hand in determining.
Diff: 2
Page Ref: 150
Topic: Setting Goals and Developing Plans
27
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
131) In a short essay, list and discuss six characteristics of well-designed goals.
Answer: (1) A well-designed goal should be written in terms of outcomes rather than actions.
The desired end result is the most important element of any goal and, therefore, the goal should
be written to reflect this. (2) Next, a goal should be measurable and quantifiable. It's much easier
to determine if a goal has been met if it's measurable. In line with specifying a quantifiable
measure of accomplishment, (3) a well-designed goal should also be clear as to a time frame.
Although open-ended goals may seem preferable because of their supposed flexibility, in fact,
goals without a time frame make an organization less flexible because a manager is never sure
when the goal has been met or when he or she should call it quits because the goal will never be
met regardless of how long he or she works at it. (4) Next, a well-designed goal should be
challenging but attainable. Goals that are too easy to accomplish are not motivating and neither
are goals that are not attainable even with exceptional effort. (5) Well-designed goals should be
written down. Although actually writing down goals may seem too time consuming, the process
of writing the goals forces people to think them through. In addition, the written goals become
visible and tangible evidence of the importance of working toward something. (6) Finally, welldesigned goals are communicated to all organizational members who need to know the goals.
Making people aware of the goals ensures that they're "on the same page" and working in ways
to ensure the accomplishment of the organizational goals.
Diff: 2
Page Ref: 151
Topic: Setting Goals and Developing Plans
132) Are strategic or operational plans needed? Does long-term planning make sense in this
situation? These decisions are affected by three contingency variables. In a short essay, list the
three planning contingency factors and illustrate how these factors influence planning.
Answer: Three contingency factors affect planning: level in the organization, degree of
environmental uncertainty, and length of future commitments. The planner's level in the
organization is likely to determine whether the plan is more strategic versus more opertional. For
the most part, operational planning dominates managers' planning at lower levels of the
organization, while at upper levels, planning is more strategy oriented. Environmental
uncertainty is the second contingency factor. When uncertainty is high, plans should be specific,
but more flexible. Under these conditions, managers may sometimes need to abandon an existing
plan in favor of a new one. Under low uncertainty, management is more likely to adhere to
existing plans. Lastly, the time frame of existing plans is likely to influence new and emerging
plans. The more current plans affect future commitments, the longer the time frame is for which
managers must plan.
Diff: 2
Page Ref: 151-152
Topic: Setting Goals and Developing Plans
28
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
133) In a short essay, identify the six main criticisms of formal planning.
Answer: One of the main arguments directed at formal planning is that it may create rigidity and
lock an organization into specific goals to be achieved within specific timetables. Second, some
argue that plans cannot be developed for a dynamic environment. Third, formal planning efforts
typically involve a thorough investigation of the organization's capabilities and opportunities and
a mechanical analysis that reduces the vision to some type of programmed routine. That
approach can spell disaster for an organization. Fourth, formal planning has a tendency to focus
on how to capitalize on existing business opportunities within an industry. It often does not allow
managers to consider creating or reinventing an industry. Fifth, formal planning reinforces
success, which may lead to failure. Finally, planning is not enough. At some point managers
must begin doing.
Diff: 1
Page Ref: 153-154
Topic: Contemporary Issues in Planning
134) In a short essay, describe how managers can effectively plan when the external environment
is continually changing.
Answer: In an uncertain environment, managers want to develop plans that are specific, but
flexible. Although this may seem contradictory, it's not. To be useful, plans need some
specificity, but the plans should not be cast in stone. Managers must recognize that planning is an
ongoing process. The plans serve as a roadmap although the destination may be changing
constantly due to dynamic market conditions. They should be willing to change directions if
environmental conditions warrant. This flexibility is particularly important as plans are
implemented. Managers must stay alert to environmental changes that could impact the effective
implementation of plans and make changes as needed. Keep in mind, also, that it's important to
continue formal planning efforts, even when the environment is highly uncertain, in order to see
any effect on organizational performance. It's the persistence in planning efforts that contributes
to significant performance improvement. It seems that, as with most activities, managers "learn
to plan" and the quality of their planning improves when they continue to do it. Finally, effective
planning in dynamic environments means flattening the organizational hierarchy as the
responsibility for establishing goals and developing plans is shoved to lower organizational
levels because there's little time for goals and plans to flow down from the top. Managers must
train their employees in setting goals and establishing plans and then trust that they will do so.
Diff: 2
Page Ref: 154-155
Topic: Contemporary Issues in Planning
29
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 2 Management History
1) According to Adam Smith, division of labor was an important concept.
Answer: TRUE
Diff: 1
Page Ref: 25
Topic: Historical Background of Management
2) The division of labor is also referred to by the term job specification.
Answer: FALSE
Diff: 1
Page Ref: 25
Topic: Historical Background of Management
3) In the Industrial Revolution, machine power began substituting for human power.
Answer: TRUE
Diff: 1
Page Ref: 25
Topic: Historical Background of Management
4) The Industrial Revolution began in the nineteenth century.
Answer: FALSE
Diff: 2
Page Ref: 25
Topic: Historical Background of Management
5) Principles of Scientific Management was written by Frederick Winslow Taylor.
Answer: TRUE
Diff: 2
Page Ref: 26
Topic: Classical Approach
6) "Employee motivation" is the phrase most associated with scientific management.
Answer: FALSE
Diff: 2
Page Ref: 26
Topic: Classical Approach
7) The primary issue that motivated Taylor to create a more scientific approach to management
was worker satisfaction.
Answer: FALSE
Diff: 2
Page Ref: 27
Topic: Classical Approach
8) Based on his scientific management principles, Taylor suggested the incentive pay principle.
Answer: TRUE
Diff: 2
Page Ref: 27
Topic: Classical Approach
9) Geert Hofstede is associated with the scientific management approach.
Answer: FALSE
Diff: 2
Page Ref: 26
Topic: Classical Approach
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
10) Frank Gilbreth's best-known contribution to scientific management concerned selecting the
best worker for a particular job.
Answer: FALSE
Diff: 2
Page Ref: 27
Topic: Classical Approach
11) Gilbreth is best known for "the one best way."
Answer: FALSE
Diff: 2
Page Ref: 27
Topic: Classical Approach
12) Frederick Taylor is most associated with the principles of scientific management.
Answer: TRUE
Diff: 1
Page Ref: 26-27
Topic: Classical Approach
13) Henri Fayol was among the first researchers to use motion pictures to study hand-and-body
motions.
Answer: FALSE
Diff: 2
Page Ref: 27
Topic: Classical Approach
14) General administrative theory focuses only on managers and administrators.
Answer: FALSE
Diff: 2
Page Ref: 28
Topic: Classical Approach
15) Henri Fayol identified five functions of managers: planning, organizing, commanding,
coordinating, and controlling.
Answer: TRUE
Diff: 2
Page Ref: 28
Topic: Classical Approach
16) The 14 principles of management are associated with Fayol.
Answer: TRUE
Diff: 2
Page Ref: 28
Topic: Classical Approach
17) An organization that has a division of labor, a clearly defined hierarchy, detailed rules, and
impersonal relationships would be described as a bureaucracy.
Answer: TRUE
Diff: 2
Page Ref: 28
Topic: Classical Approach
18) Weber's bureaucracy is a lot like scientific management.
Answer: TRUE
Diff: 2
Page Ref: 30
Topic: Classical Approach
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
19) The quantitative approach to management has also been labeled process research.
Answer: FALSE
Diff: 2
Page Ref: 30
Topic: Quantitative Approach
20) Linear programming is a technique that managers use to improve resource allocation
decisions.
Answer: TRUE
Diff: 2
Page Ref: 30
Topic: Quantitative Approach
21) The focus on employee productivity is most closely associated with the organizational
behavior approach.
Answer: FALSE
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
22) Barnard, Follett, Munsterberg, and Owen are all theorists associated with the early
organizational behavior approach.
Answer: TRUE
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
23) Hugo Munsterberg created the field of social psychology.
Answer: FALSE
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
24) Mary Parker Follett was the first advocate of the human resources approach to management.
Answer: FALSE
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
25) Chester Bernard was the first to argue that organizations are open systems.
Answer: TRUE
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
26) The most important contribution to the field of organizational behavior came from studies
conducted by the University of Michigan.
Answer: FALSE
Diff: 2
Page Ref: 34
Topic: Behavioral Approach
27) The Hawthorne Studies were performed at the General Motors plant beginning in 1924.
Answer: FALSE
Diff: 1
Page Ref: 34
Topic: Behavioral Approach
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
28) Follett is the scientist who is most closely associated with the Hawthorne Studies.
Answer: FALSE
Diff: 2
Page Ref: 34
Topic: Behavioral Approach
29) According to the textbook, total quality management is a philosophy of management driven
by continual improvement and responding to customer needs and expectations.
Answer: TRUE
Diff: 2
Page Ref: 31
Topic: Quantitative Approach
30) Which of the following is not a reason why the division of labor enhances productivity?
A) It increases worker skill and dexterity.
B) It saves time lost in changing tasks.
C) It encourages labor-saving inventions.
D) It requires strict management control over worker time and motion.
Answer: D
Diff: 2
Page Ref: 25
Topic: Historical Background of Management
31) An example of early uses of the functions of management is the ________.
A) development of gunpowder
B) arsenal of Venice where ships were built
C) Artist's Revolution in 1803
D) War of 1812
Answer: B
Diff: 2
Page Ref: 24-25
Topic: Historical Background of Management
32) In the Wealth of Nations, Adam Smith described the breakdown of jobs into narrow and
repetitive tasks and called this ________.
A) assembly lines
B) work denomination
C) division of labor
D) greatest common factor of work
Answer: C
Diff: 3
Page Ref: 25
Topic: Historical Background of Management
33) Which of the following was a major result of the Industrial Revolution?
A) cottage industry
B) water power
C) factory manufacturing
D) critical thinking
Answer: C
Diff: 3
Page Ref: 25
Topic: Historical Background of Management
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
34) Frederick Taylor performed most of his work in ________.
A) grape vineyards in California
B) steel companies in Pennsylvania
C) auto assembly plants near Detroit
D) cotton gins in Alabama
Answer: B
Diff: 1
Page Ref: 27
Topic: Classical Approach
35) Frederick Taylor advocated which of the following management principles?
A) Work and responsibility should be divided almost equally between managers and workers.
B) Workers should perform all work, while management should maintain responsibility for the
work performed.
C) Managers should perform more work that workers, because managers are generally more
skilled.
D) Workers can be highly productive even if they are randomly selected for a job.
Answer: A
Diff: 2
Page Ref: 27
Topic: Classical Approach
36) Frank and Lillian Gilbreth's work began in the area of ________.
A) laying bricks
B) cutting lumber
C) installing rudimentary electrical wiring
D) assembly lines
Answer: A
Diff: 1
Page Ref: 27
Topic: Classical Approach
37) Frank and Lillian Gilbreth were the first researchers to utilize motion pictures to the study of
________.
A) reactions of workers in group settings
B) hand-and-body motions
C) workers reactions to pay increases
D) groups of workers in tense situations where they are assigning each other tasks
Answer: B
Diff: 2
Page Ref: 27
Topic: Classical Approach
38) Which of the following phrases is most associated with scientific management?
A) management relations
B) one best way
C) supply and demand
D) quality control
Answer: B
Diff: 2
Page Ref: 27
Topic: Classical Approach
5
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
39) Frank and Lillian Gilbreth's work began in the area of ________.
A) laying bricks
B) cutting lumber
C) installing rudimentary electrical wiring
D) assembly lines
Answer: A
Diff: 1
Page Ref: 27-28
Topic: Classical Approach
40) Probably the best-known example of Taylor's scientific management was the ________
experiment.
A) horseshoe
B) pig iron
C) blue collar
D) fish tank
Answer: B
Diff: 2
Page Ref: 27
Topic: Classical Approach
41) Fayol was interested in studying ________, whereas Taylor was interested in studying
________.
A) senior managers; effective managers
B) all managers; first-line managers
C) bureaucratic structures; chains of command
D) administrative theory; macroeconomics
Answer: B
Diff: 3
Page Ref: 28
Topic: Classical Approach
42) Which of the following is not one of Fayol's principles of management?
A) division of work
B) unity of command
C) discipline
D) equality
Answer: D
Diff: 3
Page Ref: 29
Topic: Classical Approach
43) According to Weber's ideal bureaucracy, ________ occurs when employees are placed in
jobs based on technical qualifications.
A) career orientation
B) authority hierarchy
C) impersonality
D) formal selection
Answer: D
Diff: 2
Page Ref: 28
Topic: Classical Approach
6
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44) Bureaucracy is defined as a form of organization characterized by ________.
A) division of labor
B) clearly defined hierarchy
C) detailed rules and regulations
D) all of the above
Answer: D
Diff: 2
Page Ref: 28
Topic: Classical Approach
45) The primary issue that motivated Taylor to create a more scientific approach to management
was ________.
A) worker efficiency
B) worker effectiveness
C) worker absenteeism and turnover
D) workplace safety
Answer: A
Diff: 2
Page Ref: 27
Topic: Classical Approach
46) Based on his scientific management principles, Taylor suggested which of the following pay
principles?
A) monthly salary
B) monthly salary with bonus
C) seniority pay
D) incentive pay
Answer: D
Diff: 3
Page Ref: 27
Topic: Classical Approach
47) A "therblig" concerns what scientific management workplace issue?
A) optimum temperature for workplace efficiency
B) basic hand motions
C) optimum speed for basic motions
D) weight/movement ratios
Answer: B
Diff: 2
Page Ref: 28
Topic: Classical Approach
48) General administrative theory focuses on ________.
A) the entire organization
B) managers and administrators
C) the measurement of organizational design relationships
D) primarily the accounting function
Answer: A
Diff: 1
Page Ref: 28
Topic: Classical Approach
7
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49) General administrative theorists devoted their efforts to ________.
A) developing mathematical models to improve management
B) improving the productivity and efficiency of workers
C) making the overall organization more effective
D) emphasizing the study of human behavior in organizations
Answer: C
Diff: 2
Page Ref: 28
Topic: Classical Approach
50) The quantitative approach to management has also been referred to by which of the
following names?
A) sales optimization
B) management science
C) managerial theory
D) statistical reformulation
Answer: B
Diff: 1
Page Ref: 30
Topic: Quantitative Approach
51) The quantitative approach evolved from the development of mathematical and statistical
solutions to ________.
A) waiting line problems at fast-food restaurants in the 1960s
B) military problems in World War II
C) clogged telephone circuits during the 1930s
D) production management problems in the 1950s
Answer: B
Diff: 1
Page Ref: 30
Topic: Quantitative Approach
52) The quantitative approach involves applications of ________.
A) statistics, information models, and computer simulations
B) psychology testing, focus groups, and mathematics
C) optimization models, interviews, and questionnaires
D) surveys, strategic planning, and group problem solving
Answer: A
Diff: 2
Page Ref: 30
Topic: Quantitative Approach
53) Quantitative techniques have become less intimidating with the advent of ________.
A) training of these techniques in college
B) digital image processing
C) sophisticated computer software
D) managers with better mathematical skills
Answer: C
Diff: 3
Page Ref: 30-31
Topic: Quantitative Approach
8
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
54) Which of the following is not a reason why the division of labor enhances productivity?
A) It increases worker skill and dexterity.
B) It saves time lost in changing tasks.
C) It encourages labor-saving inventions.
D) It requires strict management control over worker time and motion.
Answer: D
Diff: 2
Page Ref: 25
Topic: Historical Background of Management
55) In Wealth of Nations, Adam Smith described the breakdown of jobs into specialized tasks
and called this ________.
A) assembly lines
B) work denomination
C) division of labor
D) greatest common factor of work
Answer: C
Diff: 3
Page Ref: 25
Topic: Historical Background of Management
56) ________ is a technique that managers use to improve resource allocation decisions.
A) Linear programming
B) Work scheduling
C) Economic order quantity modeling
D) Regression analysis
Answer: A
Diff: 2
Page Ref: 30
Topic: Quantitative Approach
57) Decisions on determining a company's optimum inventory levels have been significantly
influenced by ________.
A) linear programming
B) work scheduling
C) economic order quantity modeling
D) regression analysis
Answer: C
Diff: 2
Page Ref: 30-31
Topic: Quantitative Approach
58) Which of the following would not be associated with the quantitative approach to
management?
A) information models
B) critical-path scheduling
C) systematic motivation of individuals
D) linear programming
Answer: C
Diff: 2
Page Ref: 30
Topic: Quantitative Approach
9
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59) Each of the following represents a drawback to the quantitative approach except ________.
A) managers are unfamiliar with quantitative tools
B) managers cannot relate easily to quantitative models
C) managers tend to be intimidated by quantitative tools
D) quantitative problems are more widespread than behavioral problems
Answer: D
Diff: 2
Page Ref: 31
Topic: Quantitative Approach
60) A company that sees its employees as the driving force behind the organization probably
follows which managerial approach?
A) workplace diversity
B) organizational behavior
C) quantitative analysis
D) total quality management
Answer: B
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
61) Frederick Taylor advocated which of the following management principles?
A) Work and responsibility should be divided almost equally between managers and workers.
B) Workers should perform all work, while management should maintain responsibility for the
work performed.
C) Managers should perform more work that workers, because managers are generally more
skilled.
D) Workers can be highly productive even if they are randomly selected for a job.
Answer: A
Diff: 2
Page Ref: 27
Topic: Classical Approach
62) Which of the following is most closely associated with the organizational behavior approach
to management?
A) bureaucracy
B) concern for employee motivation
C) scientific methodology
D) interdependent systems
Answer: B
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
63) According to the textbook, which of the following early advocates of organizational behavior
was concerned about deplorable working conditions?
A) Robert Owens
B) Hugo Munsterberg
C) Mary Parker Follett
D) Chester Barnard
Answer: A
Diff: 3 Page Ref: 33
Topic: Behavioral Approach
10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
64) Which of the following early advocates of organizational behavior created the field of
industrial psychology, the scientific study of people at work?
A) Robert Owens
B) Hugo Munsterberg
C) Mary Parker Follett
D) Chester Barnard
Answer: B
Diff: 3
Page Ref: 33
Topic: Behavioral Approach
65) ________ was one of the first to recognize that organizations could be viewed from the
perspective of individual and group behavior.
A) Robert Owens
B) Hugo Munsterberg
C) Mary Parker Follett
D) Chester Barnard
Answer: C
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
66) Which of the following early advocates of organizational behavior was the first to argue that
organizations were open systems?
A) Robert Owens
B) Hugo Munsterberg
C) Mary Parker Follett
D) Chester Barnard
Answer: D
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
67) Which four theorists are associated with the early organizational behavior approach?
A) Barnard, Follett, Munsterberg, and Owen
B) Munsterberg, Taylor, Fayol, and Follett
C) Taylor, Fayol, Weber, and Barnard
D) Follett, Barnard, Munsterberg, and Weber
Answer: A
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
68) Which of the following was a major contribution of Hugo Munsterberg?
A) He was a social reformer.
B) He created the field of industrial psychology.
C) He was interested in individual and group behavior.
D) He viewed organizations as social systems requiring human cooperation.
Answer: B
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
11
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69) Munsterberg's work in industrial psychology is easily connected with what other
management approach?
A) general administrative
B) classical management
C) systems
D) scientific management
Answer: D
Diff: 3
Page Ref: 33
Topic: Behavioral Approach
70) Contemporary management practices that emphasize work groups as a means to increasing
productivity can be traced to which of the following authors?
A) Robert Owen
B) Mary Parker Follett
C) Chester Barnard
D) Hugo Munsterberg
Answer: B
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
71) Which of the following is true concerning the management beliefs of Barnard?
A) Employee ability and motivation remain fixed within a single employee, but vary across
different employees.
B) To improve productivity, management should concentrate on selecting the best employee
rather than motivating current employees.
C) Productivity is best achieved by insulating the organization from external constituencies.
D) Organizations are social systems that require human cooperation.
Answer: D
Diff: 3
Page Ref: 33
Topic: Behavioral Approach
72) Without question, the most important contribution to the developing field of organizational
behavior came out of the ________.
A) Taylor Studies
B) Porter Studies
C) Parker Studies
D) Hawthorne Studies
Answer: D
Diff: 2
Page Ref: 34
Topic: Behavioral Approach
73) The Hawthorne Studies were initially devised to study ________.
A) productivity levels of groups versus individuals
B) the effect of noise on employee productivity
C) the effect of illumination levels on employee productivity
D) the effect of cooperative versus competitive organizational environments on productivity
Answer: C
Diff: 2
Page Ref: 34
Topic: Behavioral Approach
12
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74) What scientist is most closely associated with the Hawthorne Studies?
A) Adams
B) Mayo
C) Lawler
D) Barnard
Answer: B
Diff: 1
Page Ref: 34
Topic: Behavioral Approach
75) One outcome of the Hawthorne Studies could be described by which of the following
statements?
A) Social norms or group standards are the key determinants of individual work behavior.
B) Money is more important than the group with regards to individual productivity.
C) Behavior and employee sentiments are inversely related.
D) Security is relatively unimportant.
Answer: A
Diff: 2
Page Ref: 34
Topic: Behavioral Approach
76) A system can best be defined as a(n)________.
A) grouping of separate and independent parts
B) set of interrelated and interdependent parts
C) ordering of distinct and unrelated parts
D) set of connected but nonfunctional parts
Answer: B
Diff: 2
Page Ref: 35
Topic: Contemporary Approach
77) Each of the following terms could be used to characterize systems except ________.
A) unified
B) fragmented
C) whole
D) set
Answer: B
Diff: 2
Page Ref: 35
Topic: Contemporary Approach
78) Which of the following types of systems does not interact with its environment?
A) fluid
B) diagrammatic
C) closed
D) resource-driven
Answer: C
Diff: 2
Page Ref: 35
Topic: Contemporary Approach
13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
79) Which of the following is considered a systems input?
A) management activities
B) financial results
C) operations methods
D) raw materials
Answer: D
Diff: 2
Page Ref: 35
Topic: Contemporary Approach
80) In an open organizational system, products and services produced by the organization can be
considered as which of the following?
A) capital expenditures
B) transformation processes
C) outputs
D) inputs
Answer: C
Diff: 2
Page Ref: 35
Topic: Contemporary Approach
81) Open organizations are those that ________.
A) interact with their environments
B) consist of interdependent parts
C) are influenced by their environments, but do not interact with them
D) operate independently of their environments
Answer: A
Diff: 2
Page Ref: 35
Topic: Contemporary Approach
82) According to the systems approach, effective management must ensure that ________.
A) its organization succeeds in ignoring governmental regulations
B) its organization becomes self-contained
C) key departments within an organization have the greatest efficiency
D) all interdependent units within an organization operate together
Answer: D
Diff: 2
Page Ref: 35
Topic: Contemporary Approach
83) A manager who believes that no one set of principles applies equally to all work
environments is most likely advocating which management approach?
A) contingency
B) workplace diversity
C) organizational behavior
D) knowledge management
Answer: A
Diff: 1
Page Ref: 36
Topic: Contemporary Approach
14
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84) The contingency approach to management is based upon which of the following?
A) similarities found within all organizations
B) a set of universal management rules
C) exceptions to generally accepted management principles
D) knowledge developed based on sophisticated logic models
Answer: C
Diff: 2
Page Ref: 36
Topic: Contemporary Approach
85) Each of the following represents a popular contingency variable except ________.
A) organization size
B) individual differences
C) environmental uncertainty
D) ideal bureaucratic structure
Answer: D
Diff: 2
Page Ref: 37
Topic: Contemporary Approach
86) TQM differs from earlier management theories because ________.
A) employee layoffs are considered acceptable provided that morale remains stable
B) high quality and low costs are both seen as important to productivity
C) reworked production items are handled by special teams assigned to this task
D) low costs are viewed as the only road to increased productivity
Answer: B
Diff: 3
Page Ref: 32
Topic: Quantitative Approach
87) ________ and ________ were two of the pioneers in the area of total quality management.
A) Fayol; Weber
B) Taylor; Gilbreth
C) Owen; Munsterberg
D) Deming; Juran
Answer: D
Diff: 2
Page Ref: 31
Topic: Quantitative Approach
88) ________ is the generic term used to describe the quality revolution that swept through both
the business and public sectors during the 1980s and 1990s.
A) Ethno quality management
B) Total quality management
C) Hyper quality management
D) Partial quality management
Answer: B
Diff: 2
Page Ref: 31-32
Topic: Quantitative Approach
15
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89) All of the following are characteristics of total quality management except ________.
A) intense focus on the competition
B) concern for continual improvement
C) improvement in the quality of everything the organization does
D) accurate measurement
E) empowerment of employees
Answer: A
Diff: 2
Page Ref: 31-32
Topic: Quantitative Approach
90) Quality management is driven by a focus on ________.
A) workplace diversity
B) workplace spirituality
C) continual improvement
D) knowledge management
Answer: C
Diff: 2
Page Ref: 31
Topic: Quantitative Approach
A Look Back (Scenario)
Cindy Schultz, tired from working with customers all day, decided to take a 15-minute nap. She
needed to clear her head before the 4:15 P.M. managers meeting. Her company had recently
begun a re engineering process. They were going through many changes that required extensive
management input. As she leaned back in her chair, Cindy wondered if management processes
had always been this way. She fell asleep and dreamed that she was traveling in a time machine
with "Mr. Peabody" as her guide. Mr. Peabody took Cindy back through management history.
91) Cindy visited a bookstore that was holding a book signing. She saw that the title of the book
was Principles of Scientific Management, which had just been published. Cindy concluded that
the time period must be ________.
A) early 1800s
B) late 1800s
C) early 1900s
D) mid 1900s
Answer: C
Diff: 1
Page Ref: 26
Topic: Classical Approach
92) Cindy admired the works of Taylor and Gilbreth, two advocates of ________.
A) scientific management
B) organizational behavior
C) human resource management
D) motivation
Answer: A
Diff: 2
Page Ref: 27
Topic: Classical Approach
16
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
93) Cindy was impressed to learn that Frederick Taylor's experiments succeeded in improving
worker productivity by ________ percent or more.
A) 25
B) 50
C) 130
D) 200
Answer: D
Diff: 2
Page Ref: 27
Topic: Classical Approach
94) Cindy spent some time visiting with ________, a researcher who also contributed to
management science by being among the first to use motion picture films to study hand-andbody motions.
A) Henry Gantt
B) Max Weber
C) Chester Barnard
D) Frank Gilbreth
Answer: D
Diff: 2
Page Ref: 27
Topic: Classical Approach
Management Intern (Scenario)
As an intern, Jeanna is perplexed as she hears different managers discuss their views on
particular problems. She has been assigned to several departments during her internship.
95) In trying to increase productivity, one manager utilizes analysis of basic work tasks to
determine the "one best way" for different jobs to be done. It is most likely that this manager has
studied the work of ________.
A) Frederick Taylor
B) Edward Deming
C) Max Weber
D) Henri Fayol
Answer: A
Diff: 3
Page Ref: 27
Topic: Classical Approach
96) As she talked to another manager, Jeanna learned a view of the organization that stressed
strict division of labor, formal rules and regulations, and impersonal application of those rules
and regulations. This manager was a student of ________.
A) the Industrial Revolution
B) quantitative methods
C) objectivism
D) bureaucracy
Answer: D
Diff: 2
Page Ref: 28
Topic: Classical Approach
17
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
The Hawthorne Studies (Scenario)
Paul was assigned a research project in the field of organizational behavior. He decided to write
his report on the Hawthorne Studies. After writing his report, Paul gave an oral presentation to
his management class.
97) Paul explained that the Hawthorne Studies project began as a test to determine the most
productive ________.
A) reward structure for employees
B) level of lighting in the workplace
C) number of breaks during a shift
D) number of days away from work per month
Answer: B
Diff: 2
Page Ref: 34
Topic: Behavioral Approach
98) In describing the research project, Paul informed his classmates that the project studied
________.
A) employee behaviors and sentiments
B) group influences on individual behavior
C) how group standards affect individual behavior
D) all of the above
Answer: D
Diff: 3
Page Ref: 34
Topic: Behavioral Approach
99) Paul's classmates were most likely surprised to learn about which of the following
conclusions of the study?
A) Low light levels are associated with low worker productivity.
B) Increases in lighting intensity cause group productivity to decrease.
C) Increases in lighting intensity are directly related to increases in productivity.
D) Lighting intensity is not directly related to group productivity.
Answer: D
Diff: 2
Page Ref: 34
Topic: Behavioral Approach
100) In explaining what critics disliked about the Hawthorne Studies, Paul most likely listed
which of the following?
A) the research procedures
B) analyses of findings
C) the conclusions based on the analyses of the findings
D) all of the above
Answer: D
Diff: 3
Page Ref: 34
Topic: Behavioral Approach
18
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
101) Paul explained that the most important thing about these studies is that they ________.
A) helped employees understand their own behavior, beginning the employee empowerment
movement
B) stimulated interest in human behavior in organizations
C) concluded that employees were no different from machines
D) showed that managers had to be right in all their decisions
Answer: B
Diff: 3
Page Ref: 34
Topic: Behavioral Approach
The Human Side (Scenario)
As an engineer, Kevin was trained to understand the roles of machinery and hardware in
enhancing organizational productivity. However, Kevin was promoted to a managerial position
where his duties included supervising a department of 34 people and leading them toward
completion of a new project. Ever the perfectionist, Kevin decided to enhance his understanding
of the human side of business management by reading a history text on the organizational
behavior approach.
102) Kevin read that ________ was an early social reformer who is remembered most for his/her
courage and commitment to improving the working conditions of laborers.
A) Hugo Munsterberg
B) Robert Owen
C) Mary Parker Follett
D) Chester Barnard
Answer: B
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
103) Kevin also expanded his reading list to include works authored by ________, the creator of
the field of industrial psychology.
A) Hugo Munsterberg
B) Robert Owen
C) Mary Parker Follett
D) Chester Barnard
Answer: A
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
104) Kevin was surprised to learn that using group-based projects was not a contemporary
concept. In fact, ________ was an early 1900s social philosopher who thought that organizations
should be based on a group ethic.
A) Hugo Munsterberg
B) Robert Owen
C) Mary Parker Follett
D) Chester Barnard
Answer: C
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
19
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
105) Kevin also learned that the organizational behavior approach was not limited to academic
theorists. A strong contribution to this field was made by ________, an actual manager who
thought organizations were social systems that required cooperation.
A) Hugo Munsterberg
B) Robert Owen
C) Mary Parker Follett
D) Chester Barnard
Answer: D
Diff: 2
Page Ref: 33
Topic: Behavioral Approach
The New Business (Scenario)
Lois has started on her own children's clothing manufacturing company. She is a bit nervous but
is confident that the company will succeed. Lois plans to implement a total quality management
program in her company. To launch the program, she develops a series of training workshops for
her managers.
106) The first training workshop explains the background of total quality management. Which of
the following quality experts is Lois most likely to include in this workshop?
A) Henry Ford
B) Joseph M. Juran
C) Bernie Ebbers
D) Jeff Bezos
Answer: B
Diff: 2
Page Ref: 31
Topic: Quantitative Approach
107) In the second workshop, Lois explains the key principles of total quality management.
Which of the following is she most likely to mention?
A) intense focus on the customer
B) discipline of employees
C) focus on work products rather than processes
D) reduced attention to complaint resolution
Answer: A
Diff: 2
Page Ref: 31
Topic: Quantitative Approach
108) The third workshop is devoted to understanding how total quality management defines the
term customer. This definition includes ________.
A) all those who interact with the organization's products or services
B) only those who purchase the organization's products or services
C) suppliers and purchasers, but not company employees
D) only those who register a specific complaint regarding a product or service
Answer: A
Diff: 2
Page Ref: 31
Topic: Quantitative Approach
20
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
109) Which two historical events were especially significant to the study of management?
Describe these events and discuss how they helped develop the management profession.
Answer: Two historical events are especially significant to the study of management. First, in
1776, Adam Smith published The Wealth of Nations, in which he argued the economic
advantages that organizations and society would gain from the division of labor (or job
specialization). The division of labor involved the breakdown of jobs into narrow and repetitive
tasks. Smith's work showed that division of labor increased productivity by increasing each
worker's skill and dexterity. It also saved time lost in changing tasks, and it encouraged the
development of labor-saving inventions and machinery. Division of labor continues to be
popular as a principle for managing work.
The second important event is the Industrial Revolution, which started in the late eighteenth
century. During the Industrial Revolution, machine power was substituted for human power.
This made it more economical to manufacture goods in factories rather than at home. The shift to
factory work increased the need for management professionals. Large efficient factories needed
managers to forecast demand and to ensure that enough material was on hand to make products.
Managers were also needed to assign tasks to people and to direct daily activities. The increase
in managers in turn necessitated the development of formal theories to guide managers in
running large organizations.
Diff: 2
Page Ref: 25-26
Topic: Historical Background of Management
110) In a short essay, discuss Frederick Taylor's work in scientific management. Next, list
Taylor's four principles of management.
Answer: Frederick Taylor did most of his work at the Midvale and Bethlehem Steel Companies
in Pennsylvania. As a mechanical engineer with a Quaker and Puritan background, he was
continually appalled by workers' inefficiencies. Employees used vastly different techniques to do
the same job. They were inclined to "take it easy" on the job, and Taylor believed that worker
output was only about one-third of what was possible. Virtually no work standards existed.
Workers were placed in jobs with little or no concern for matching their abilities and aptitudes
with the tasks they were required to do. Managers and workers were in continual conflict. Taylor
set out to correct the situation by applying the scientific method to shop floor jobs. He spent
more than two decades passionately pursuing the "one best way" for each job to be done.
Taylor's Four Principles of Management
a. Develop a science for each element of an individual's work, which will replace the old ruleof-thumb method.
b. Scientifically select and then train, teach, and develop the worker.
c. Heartily cooperate with the workers so as to ensure that all work is done in accordance with
the principles of the science that has been developed.
d. Divide work and responsibility almost equally between management and workers.
Management takes over all work for which it is better fitted than the workers.
Diff: 3
Page Ref: 26-27
Topic: Classical Approach
21
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
111) In a short essay, discuss the work in scientific management done by Frank and Lillian
Gilbreth.
Answer: Frank Gilbreth is probably best known for his experiments in bricklaying. By carefully
analyzing the bricklayer's job, he reduced the number of motions in laying exterior brick from 18
to about 5, and on laying interior brick the motions were reduced from 18 to 2. Using the
Gilbreth's techniques, the bricklayer could be more productive on the job and less fatigued at the
end of the day. The Gilbreths were among the first researchers to use motion pictures to study
hand-and-body motions and the amount of time spent doing each motion. Wasted motions
missed by the naked eye could be identified and eliminated. The Gilbreths also devised a
classification scheme to label 17 basic hand motions, which they called therbligs. This scheme
allowed the Gilbreths a more precise way of analyzing a worker's exact hand movements.
Diff: 2
Page Ref: 27-28
Topic: Classical Approach
112) In a short essay, discuss the work of Henri Fayol as it relates to the general administrative
approach to management. Next, list and discuss 7 of Fayol's 14 principles of management.
Answer: Fayol described the practice of management as something distinct from accounting,
finance, production, distribution, and other typical business functions. He argued that
management was an activity common to all human endeavors in business, in government, and
even in the home. He then proceeded to state 14 principles of management fundamental rules of
management that could be taught in schools and applied in all organizational situations.
Fayol's 14 Principles of Management
a. Division of work specialization increases output by making employees more efficient.
b. Authority managers must be able to give orders and along with authority, however, goes
responsibility.
c. Discipline employees must obey and respect the rules that govern the organization.
d. Unity of command every employee should receive orders from only one superior.
e. Unity of direction the organization should have a single plan of action to guide managers
and workers.
f. Subordination of individual interests to the general interest the interests of any one
employee or group of employees should not take precedence over the interests of the
organization as a whole.
g. Remuneration workers must be paid a fair wage for their services.
h. Centralization this term refers to the degree to which subordinates are involved in decision
making.
i. Scalar chain the line of authority from top management to the lowest ranks is the scalar
chain.
j. Order people and materials should be in the right place at the right time.
k. Equity managers should be kind and fair to their subordinates.
l. Stability of tenure of personnel management should provide orderly personnel planning and
ensure that replacements are available to fill vacancies.
m. Initiative employees who are allowed to originate and carry out plans will exert high levels
of effort.
n. Esprit de corps promoting team spirit will build harmony and unity within the organization.
Diff: 3
Page Ref: 28-29
Topic: Classical Approach
22
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
113) Describe the six elements of Max Weber's model of bureaucracy. Explain the significance
of each.
Answer: In Max Weber's model, an ideal bureaucracy contains six elements. The first of these is
a division of labor, through which jobs are broken down into simple, routine, and well-defined
tasks. The second element is an authority hierarchy, in which job positions are organized
within a clear chain of command. The third element is formal selection, through which
personnel are selected for jobs based on their technical qualifications.
The fourth element of Weber's model is formal rules and regulations. Weber believed that a
bureaucracy should be organized according to a system of written rules and standard operating
procedures. Fifth, Weber believed that bureaucracies should be characterized by impersonality.
Through this element, rules and controls could be applied in a uniform way, not according to
individual personalities. Finally, Weber's bureaucratic model includes a sixth element: career
orientation. Weber saw managers not as owners of the units they manage, but instead as career
professionals.
Diff: 3
Page Ref: 28-30
Topic: Classical Approach
114) In a short essay, describe the Hawthorne Studies. Next, discuss the role of Elton Mayo in
these studies and list some of the findings of his research.
Answer: Without question, the most important contribution to the developing organizational
behavior field came from the Hawthorne Studies, a series of studies conducted at the Western
Electric Company Works in Cicero, Illinois. Western Electric industrial engineers initially
designed these studies as a scientific management experiment. They wanted to examine the
effect of various illumination levels on worker productivity. Based on their research, it was
concluded that illumination intensity was not directly related to group productivity. In 1927, the
Western Electric engineers asked Harvard professor Elton Mayo and his associates to join the
study as consultants. Through additional research, Elton Mayo concluded that group influences
affected individual behavior, that group standards establish individual worker output, and that
money is less a factor in determining output than are group standards, group sentiments, and
security. These conclusions led to a new emphasis on the human behavior factor in the
functioning of organizations and the attainment of their goals.
Diff: 3
Page Ref: 34
Topic: Behavioral Approach
23
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
115) In a short essay, explain three primary ways in which the systems approach contributes to
our understanding of management.
Answer: The systems approach contributes to our understanding of management first by helping
us to understand that organizations are made up of interdependent factors. As managers
coordinate work activities in the various units of the organization, they must ensure that all of the
interdependent units are working together so that the organization's goals can be achieved. The
systems approach recognizes that an organization's overall performance is dependent upon the
efforts of many units working together.
Second, the systems approach helps us to understand that decisions and actions taken in one
organizational area will affect others and vice versa. For example, if the purchasing department
of a company doesn't acquire the right quantity and quality of inputs, that company's production
department will not be able to do its job effectively.
Third, the systems approach recognizes that organizations are not self-contained. They rely on
their environments for essential inputs. They also use their environments as outlets to absorb
their outputs. No organization can survive for long if it ignores government regulations, supplier
relations, or the varied external constituencies upon which it depends.
Diff: 3
Page Ref: 35-36
Topic: Contemporary Approach
24
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
116) Describe four popular variables established by the contingency approach. Explain how each
variable might affect management approaches in different organizations. Provide an example of
each.
Answer: One important contingency variable is the size of an organization. As the size of an
organization increases, so do the problems of coordination. For instance, the type of organization
structure appropriate for an organization of 50,000 employees is likely to be inefficient for an
organization of 50 employees. A very large organization might require a more hierarchical
management structure. A small organization, on the other hand, might thrive with less hierarchy
in its management structure.
A second popular contingency variable concerns the routineness of task technology. To achieve
its purpose, an organization must use technology. Routine technologies require organizational
structures, leadership styles, and control systems that differ from those required by customized or
nonroutine technologies. An auto manufacturing plant, for instance, might use routine
technologies such as robots to perform automated work. These robots would require a much
different type of management than would be required within a service business, such as a fast
food restaurant, where employees' customer service performance must be supervised.
A third contingency variable is environmental uncertainty. The degree of uncertainty caused
by environmental changes influences the management process. What works best in a stable and
predictable environment may be totally inappropriate in a rapidly changing and unpredictable
environment. A company that is going through a merger, for instance, might require its managers
to focus on helping employees cope with management transitions. A company that is in a more
stable environment might encourage its managers to focus on employee productivity and
company growth.
A fourth contingency variable concerns individual differences. Individuals differ in terms of
their desire for growth, autonomy, tolerance of ambiguity, and expectations. These and other
individual differences are particularly important when managers select motivation techniques,
leadership styles, and job designs. An individual who desires a great deal of autonomy on the job
might need to be managed in a very "hands off" style, for example. An individual who is very
motivated by team success might need to have his or her work activities structured to involve a
great deal of group interaction.
Diff: 3
Page Ref: 36-37
Topic: Contemporary Approach
25
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 4 Managing in a Global Environment
1) Americans tend to suffer from parochialism.
Answer: TRUE
Diff: 2
Page Ref: 71
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
2) A drawback of the geocentric perspective is that it is inflexible.
Answer: FALSE
Diff: 2
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
3) Managers with an ethnocentric attitude would not trust foreign employees with key decisions
or technology.
Answer: TRUE
Diff: 2
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
4) Managers with a polycentric attitude would view every foreign operation as difficult and hard
to understand.
Answer: TRUE
Diff: 2
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
5) The polycentric attitude is a world-oriented view focusing on using the best approaches and
people from around the globe.
Answer: FALSE
Diff: 2
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
6) The European Union (EU) and the North American Free Trade Agreement (NAFTA) created
regional trading and cooperative agreements.
Answer: TRUE
Diff: 1
Page Ref: 73
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
7) The primary motivation for the creation of the EU was to allow Europeans to reassert their
position against the industrial strength of the United States and Japan.
Answer: TRUE
Diff: 2
Page Ref: 73
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
8) The three original partners of NAFTA are the United States, Canada, and Mexico.
Answer: TRUE
Diff: 1
Page Ref: 74
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
9) Mercosur is a trading group made up of South American countries.
Answer: TRUE
Diff: 2
Page Ref: 74
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
10) Norway is a member of the European Union.
Answer: FALSE
Diff: 3
Page Ref: 73
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
11) Multinational corporations became commonplace in the mid-1960s.
Answer: TRUE
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
12) Multinational corporations maintain significant operations in two or more countries
simultaneously, but are based in one home country.
Answer: TRUE
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
13) The transnational corporation characterizes the ethnocentric attitude toward the management
of an organization's global business.
Answer: FALSE
Diff: 3
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
14) Transnational corporations run their businesses from their home country.
Answer: FALSE
Diff: 1
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
15) When organizations first go international, they often start with global sourcing.
Answer: TRUE
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
16) The process of exporting involves acquiring products made abroad and selling them
domestically.
Answer: FALSE
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
17) In the early stages of doing business internationally, managers may license or franchise to
another firm the right to use their organization's brand name, technology, or product
specifications.
Answer: TRUE
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
18) Licensing is commonly used by both manufacturing and services organizations.
Answer: FALSE
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
19) In a strategic alliance, both partners share the risks and rewards of the alliance.
Answer: TRUE
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
20) The legal-political environment is an important factor of managing in a foreign environment.
Answer: TRUE
Diff: 1
Page Ref: 79
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
21) Only when a country's legal-political environment is unstable or revolutionary is it of
concern to managers.
Answer: FALSE
Diff: 2
Page Ref: 79
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
22) The United States is an example of a command economy.
Answer: FALSE
Diff: 2
Page Ref: 80
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
23) Research indicates that organizational culture has a stronger impact on employees than does
national culture.
Answer: FALSE
Diff: 3
Page Ref: 81
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
24) Mexico is an example of a collectivist nation.
Answer: TRUE
Diff: 3
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
25) The United States is an example of a country with smaller power distance.
Answer: TRUE
Diff: 2
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
26) An increased level of anxiety among its people characterizes a society with high uncertainty
avoidance.
Answer: TRUE
Diff: 1
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
27) Hofstede found that the Italian culture is well above average on uncertainty avoidance
measures of culture.
Answer: TRUE
Diff: 1
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
28) GLOBE stands for Global Leadership and Organizational Behavior Effectiveness.
Answer: TRUE
Diff: 1
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
4
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
29) The GLOBE framework for assessing cultures is similar to Hofstede's framework, but
measures fewer dimensions.
Answer: FALSE
Diff: 1 Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
30) One challenge that arises out of the openness of globalization is the threat of terrorism.
Answer: TRUE
Diff: 1
Page Ref: 84
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
31) To succeed in a global marketplace, managers must ________.
A) constantly develop new strategies to maintain their parochial views
B) expect competitors to suddenly appear at any time from any place
C) implement only the best practices of their home countries
D) downplay the effect of the values and customs of other cultures
Answer: B
Diff: 3
Page Ref: 83
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
32) One reason for parochialism in the United States is that Americans tend to study ________ in
school.
A) only English
B) only two languages
C) English and French
D) English and Spanish
Answer: A
Diff: 1
Page Ref: 71
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
33) Which of the following describes the current state of the world use of languages?
A) Germans and Italians, unlike other Europeans, only speak their native language.
B) Americans tend to study many other languages in school.
C) More than 75 percent of all primary school children in China now learn English.
D) Americans tend to think of English as the only international business language.
Answer: D
Diff: 2
Page Ref: 71
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
5
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
34) Ethnocentric views concentrate on their ________.
A) home country
B) host country
C) world orientation
D) racial orientation
Answer: A
Diff: 1
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
35) Parochialism is ________.
A) acceptance of diverse points of view
B) a desire to leave one's own culture for a foreign culture
C) a tendency to view the world through a single perspective
D) recognition of diverse religious beliefs
Answer: C
Diff: 2
Page Ref: 71
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
36) For U.S. businesses to have successful global management, which of the following
statements provides the best advice?
A) Americans should continue to push for the use of English only.
B) Stick to your own customs to avoid embarrassing incidents.
C) Make sure foreign businesspeople know you are American so they will speak to you in
English.
D) Develop an understanding of multicultural differences.
Answer: D
Diff: 2
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
37) Which of the following is the least favorable attitude for an American manager who wishes
to be successful in international business?
A) multicultural
B) multicentric
C) ethnocentric
D) polycentric
Answer: C
Diff: 1
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
6
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
38) Managers with a(n) ________ attitude view every foreign operation as different and hard to
understand.
A) geocentric
B) polycentric
C) ethnocentric
D) transnational
Answer: B
Diff: 2
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
39) Successful global management requires an attitude that is best described as ________.
A) ethnocentric
B) parochial
C) polycentric
D) geocentric
Answer: D
Diff: 1
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
40) A(n) ________ attitude is characterized by parochialism.
A) geocentric
B) acculturated
C) polylinguistic
D) ethnocentric
Answer: D
Diff: 2
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
41) A(n) ________ attitude is the view that host-country managers know the best practices for
running their operations.
A) ethnocentric
B) polycentric
C) geocentric
D) international
Answer: B
Diff: 1
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
7
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
42) The geocentric attitude is a ________ view.
A) nationalistic
B) world-oriented
C) culture-bound
D) franchise-based
Answer: B
Diff: 2
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
43) Successful ________ management requires enhanced sensitivity to differences in national
customs and practices.
A) ethnocentric
B) polycentric
C) global
D) parochial
Answer: C
Diff: 2
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
44) The ________ was created by the unification of 12 countries in Europe.
A) European Common Market
B) European Union
C) Western European Alliance
D) Trans-European Market (TEM)
Answer: B
Diff: 2
Page Ref: 73
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
45) The principle reason for the formation of a regional trading alliance in Europe was to reassert
members' economic positions against the strength of the United States and ________.
A) Canada
B) Mexico
C) Japan
D) Russia
Answer: C
Diff: 2
Page Ref: 73
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
8
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
46) The European Union covers ________.
A) border controls, taxes, and subsidies
B) nationalistic policies and travel
C) employment, investment, and trade
D) all of the above
Answer: D
Diff: 2
Page Ref: 73
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
47) The single EU currency is called the ________.
A) franc
B) franc-mark
C) pound
D) euro
Answer: D
Diff: 2
Page Ref: 73
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
48) Which of the following countries is not a member of the European Union?
A) Iceland
B) Ireland
C) Cyprus
D) Slovenia
Answer: A
Diff: 2
Page Ref: 73
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
49) Among the member countries of the North American Free Trade Agreement, trade has
________ since the treaty was signed.
A) decreased initially, but increased steadily
B) increased
C) decreased
D) increased in commodities, but decreased in manufactured goods
Answer: B
Diff: 2
Page Ref: 74
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
9
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
50) The North American Free Trade Agreement includes ________.
A) Mexico, Canada, and the United States
B) Canada, Mexico, and Brazil
C) the United States, Canada, and Honduras
D) Columbia, Mexico, and the United Sates
Answer: A
Diff: 1
Page Ref: 74
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
51) Which of the following is currently under negotiation by 34 countries in the Western
Hemisphere?
A) NAFTA
B) FTAA
C) Mercosur
D) ASEAN
Answer: B
Diff: 3
Page Ref: 74
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
52) The North American Free Trade Agreement eliminated all of the following except ________.
A) the need for import licensing
B) tariffs on traded commodities
C) customs user fees
D) China's role as a U.S. trading partner
Answer: D
Diff: 2
Page Ref: 74
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
53) The Association of Southeast Asian Nations includes ________.
A) the members of the European Union and India
B) the members of NAFTA and CAFTA
C) a membership of 10 Southeast Asian nations
D) none of the above
Answer: C
Diff: 2
Page Ref: 75
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
54) Each of the following is a member of ASEAN except ________.
A) Brunei
B) Singapore
C) Laos
D) Japan
Answer: D
Diff: 2
Page Ref: 75
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
55) How many member nations belong to the African Union (AU)?
A) 46
B) 53
C) 62
D) 67
Answer: B
Diff: 2
Page Ref: 75
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
56) Nepal belongs to which of the following regional trade alliances?
A) EU
B) SAARC
C) AU
D) ASEAN
Answer: B
Diff: 2
Page Ref: 75
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
57) The World Trade Organization evolved from which of the following?
A) GATT
B) Mercosur
C) UNIDIR
D) Marshall Plan
Answer: A
Diff: 2
Page Ref: 75
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
58) The World Trade Organization is centered around which of the following?
A) public protests
B) economic sanctions
C) trade agreements
D) peace treaties
Answer: C
Diff: 2
Page Ref: 75
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
11
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
59) International businesses have been around since about what date?
A) the fifteenth century
B) the seventeenth century
C) the nineteenth century
D) the twentieth century
Answer: C
Diff: 3
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
60) Multinational corporations (MNCs) have only become commonplace since approximately
what date?
A) mid-1960s
B) mid-1970s
C) 1945
D) mid-1980s
Answer: A
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
61) Multidomestic corporations are known for ________.
A) ethnocentric attitudes
B) polycentric attitudes
C) multicentric attitudes
D) having their holdings in one country
Answer: B
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
62) Which of the following is an MNC that tailors marketing strategies to the host country's
unique characteristics?
A) borderless organization
B) global company
C) multidomestic corporation
D) transnational organization
Answer: C
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
12
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
63) Multidomestic corporations ________.
A) maintain operations in multiple counties, but do not allow managers in each country to make
their own decisions
B) utilize ethnocentric attitudes in financial decisions, but favor polycentric views in human
resources issues
C) utilize decentralization to make decisions in management in local countries
D) follow the tastes, preferences, and values of the home country
Answer: C
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
64) When an organization drops its structure based on countries and reorganizes according to
industries, it is pursuing a global organizational operation known as ________.
A) ethnocentrism
B) polycentrism
C) borderless organization
D) multinational organization
Answer: C
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
65) Transnational organizations are also known as ________.
A) ethnocentric organizations
B) polycentric organizations
C) borderless organizations
D) multidomestic organization
Answer: C
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
66) Transnational organizations are focused on ________.
A) increasing efficiency
B) developing INVs
C) reinforcing structural divisions
D) all of the above
Answer: A
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
67) Which of the following types of business is global from its inception?
A) international new venture
B) global company
C) born global
D) joint economic market
Answer: C
Diff: 3
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
68) Which of the following is a basic definition of a multinational corporation?
A) a company that maintains operations in multiple countries
B) a company that maintains franchises in multiple countries
C) a company that has multiple home bases and manufacturing plants
D) a company that pays corporate taxes in at least two countries
Answer: A
Diff: 3
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
69) Which of the following is the basic difference between multidomestic corporations and
global companies?
A) Multidomestic corporations typically do business with more countries than global companies
do.
B) Multidomestic corporations are run by global companies but must be owned by a local,
national company.
C) Multidomestic corporations decentralize management to the local country, while global
companies centralize management in the home country.
D) Multidomestic corporations pay more in taxes than global companies do.
Answer: C
Diff: 3
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
70) Which of the following is not a feature of a multidomestic corporation?
A) Decision making takes place at the local level.
B) Nationals are typically hired to run operations in each country.
C) Marketing strategies are tailored to each country's culture.
D) Products are manufactured only in the local country.
Answer: D
Diff: 1
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
14
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
71) Which of the following types of global organizations reflects the geocentric attitude?
A) multidomestic corporation
B) transnational organization
C) global company
D) regional organization
Answer: B
Diff: 3
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
72) Importing and exporting represent a more significant global investment than which of the
following?
A) licensing
B) franchising
C) global sourcing
D) strategic alliance
Answer: C
Diff: 1
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
73) In an attempt to be more aggressive, a company might export and import more. These steps
usually require ________.
A) minimal investment and minimal risk
B) conducting business in a polycentric manner
C) the establishment of strategic alliances
D) abnormal operations for a geocentric organization
Answer: A
Diff: 1
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
74) Franchising is primarily used by ________.
A) political organizations
B) manufacturing organizations
C) service organizations
D) legal organizations
Answer: C
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
15
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
75) In the later stages of doing business globally, if an organization is ready to make a more
direct investment, it might utilize ________.
A) foreign subsidiaries
B) strategic alliances
C) joint ventures
D) all of the above
Answer: D
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
76) An international company is most likely to develop foreign subsidiaries ________.
A) before it develops licensing agreements
B) before it develops franchising agreements
C) before it begins importing and exporting
D) after it establishes strategic alliances
Answer: D
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
77) The process of making products domestically and selling them abroad is known as
________.
A) exporting
B) importing
C) franchising
D) joint ventures
Answer: A
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
78) Which of the following is usually found in the final stage of an organization's global
evolution?
A) exporting its products to other countries
B) cross-culturally training its managers
C) establishing strategic alliances with partners
D) licensing another firm to use its brand name
Answer: C
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
16
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
79) Joint ventures are a type of ________.
A) license
B) franchise
C) foreign subsidiary
D) strategic alliance
Answer: D
Diff: 2
Page Ref: 78
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
80) Foreign subsidiaries are usually managed ________.
A) through local control only
B) through centralized control only
C) through local or centralized control
D) none of the above
Answer: C
Diff: 1
Page Ref: 78
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
81) A domestic firm and a foreign firm sharing the cost of developing new products or building
production facilities in a foreign country is called a ________.
A) franchising agreement
B) joint venture
C) foreign subsidiary
D) brokering agreement
Answer: B
Diff: 2
Page Ref: 78
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
82) Which of the following would most likely occur last in an organization's global evolution?
A) cross-cultural training of the company's managers
B) sending domestic employees on regular foreign business trips
C) hiring foreign brokers to represent the organization's product line
D) creating a joint venture with suppliers around the globe
Answer: D
Diff: 2
Page Ref: 78
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
83) ________ present(s) the greatest risk to an organization going international.
A) Joint ventures
B) Strategic alliances
C) Licensing
D) Foreign subsidiaries
Answer: D
Diff: 3
Page Ref: 78
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
84) Which of the following is not considered to be one of the three major areas of significant
challenge for an American manager working in a foreign country?
A) legal environment
B) economic environment
C) cultural environment
D) religious environment
Answer: D
Diff: 3
Page Ref: 80
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
85) From an economic standpoint, a threat to the global manager is ________.
A) widely fluctuating inflation rates in foreign countries
B) marginal revenues exceeding marginal costs
C) a stable exchange rate between currencies in various countries
D) all of the above
Answer: A
Diff: 2
Page Ref: 80
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
86) Compared to many other countries, the U.S. legal-political environment is considered
________.
A) radical
B) stable
C) unstable
D) fixed
Answer: B
Diff: 2
Page Ref: 79
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
18
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
87) Compared to many other countries, changes to the U.S. legal-political environment are
considered ________.
A) very fast and effective
B) fast, but not efficient
C) radical
D) slow
Answer: D
Diff: 2
Page Ref: 79
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
88) The reason that a nation's cultural differences are the most difficult to gain information about
is because ________.
A) people tend to be sensitive about their own culture
B) providing this information to foreign organizations reduces a competitive business advantage
C) there is little written on the issue
D) "natives" are least capable of explaining the unique characteristics of their own culture
Answer: D
Diff: 3
Page Ref: 81
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
89) Which of the following developed a valuable framework to help managers better understand
differences between national cultures?
A) Milton Friedman
B) Michael Porter
C) Geert Hofstede
D) Abraham Maslow
Answer: C
Diff: 2
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
90) ________ is a cultural dimension in which people expect others in their group to look after
them and protect them when they are in trouble.
A) Power distance
B) Collectivism
C) Achievement
D) Uncertainty avoidance
Answer: B
Diff: 1
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
19
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
91) Which of the following would you find in a country with a high power distance?
A) Society accepts narrow differences in organizations.
B) Title carries little power, but status power is high.
C) There is little respect for those in authority.
D) Titles, rank, and status carry a lot of weight.
Answer: D
Diff: 2
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
92) The GLOBE framework assesses how many cultural dimensions?
A) 5
B) 6
C) 9
D) 12
Answer: C
Diff: 2 Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
93) ________ is a cultural measure of the degree to which people will tolerate risk and
unconventional behavior.
A) Power distance
B) Uncertainty avoidance
C) Achievement
D) Nurturing
Answer: B
Diff: 1
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
94) Organizations in which of the following cultures are likely to have formal rules and little
tolerance for unusual ideas and behaviors?
A) high power distance
B) low power distance
C) high uncertainty avoidance
D) low uncertainty avoidance
Answer: C
Diff: 1
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
20
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
95) In a society with a highly ________ culture, strong value is placed on relationships and
concern for others.
A) collectivist
B) achievement-oriented
C) nurturing
D) uncertainty avoidant
Answer: C
Diff: 2
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
96) ________ is a national culture attribute describing the extent to which societal values are
characterized by assertiveness and materialism.
A) Power distance
B) Uncertainty avoidance
C) Achievement orientation
D) Long-term orientation
Answer: C
Diff: 2
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
97) ________ is a national culture attribute that places a high value on future occurrences.
A) Power distance
B) Uncertainty avoidance
C) Long-term orientation
D) Leisure orientation
Answer: C
Diff: 2
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
98) Which of the following are most alike in terms of individualism, power distance, and
uncertainty avoidance?
A) Singapore and Sweden
B) Australia and England
C) France and Greece
D) United States and Venezuela
Answer: B
Diff: 1
Page Ref: 83
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
21
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
First Visit Abroad (Scenario)
Bill Sanderson is halfway over the Atlantic and is excited about his first European business trip.
Bill is confident about this trip but is somewhat concerned about the strange habits and foreign
languages he will encounter. "If only they would just speak English like everyone else!" Bill
thinks.
99) Bill's tendency to view the world only through his U.S.-based perspective is an international
business problem known as which of the following?
A) nondiversity
B) discrimination
C) parochialism
D) monolingualism
Answer: C
Diff: 2 Page Ref: 71
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
100) If Bill is to become successful as a global manager, he must ________.
A) attempt to change other cultures to American ways
B) learn and accept other cultures
C) compete internationally but remain in the United States
D) learn to manipulate other business cultures
Answer: B
Diff: 2
Page Ref: 71
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
Cultural Training (Scenario)
Jane wants to expand her career opportunities in international operations of a company. She is 19
years old and currently attends a university. She has only lived in her current country and has
never traveled to foreign countries.
101) In talking with her advisor at the university, Jane decides she probably has a(n) ________
attitude, as she has never traveled abroad and only relates well to people from her home country.
A) culturally focused
B) polycentric
C) ethnocentric
D) geocentric
Answer: C
Diff: 2
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
22
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
102) Jane becomes involved with an international student association to give her experiences that
will allow her to understand the views of students from other countries. She is trying to become
more ________ in her attitude.
A) parochialistic
B) polycentric
C) ethnocentric
D) geocentric
Answer: D
Diff: 3
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
A Foreign Alliance Talk (Scenario)
As manager of the international department for your company, you have been asked by the local
Chamber of Commerce to deliver a speech on foreign trade. The chamber president even goes so
far as to say "and be sure to include the EU, NAFTA, and all that stuff because we're afraid that
Ross Perot is right all the good jobs will leave the United States." As you pour over your notes,
you try to choose the best information to present in the allotted half hour.
103) You plan to explain during your talk that the acronyms EU, NAFTA, FTAA, and ASEAN
refer to ________.
A) regional trade alliances
B) foreign airlines
C) soccer teams in Europe
D) new multinational corporations
Answer: A
Diff: 3
Page Ref: 73
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
104) One of the hottest topics of your talk will be NAFTA. One of the points that you emphasize
is that ________.
A) the United States has definitely come out the worst of the three nations
B) Canada is profiting the most in this arrangement
C) the expansion of NAFTA has benefited North America's competitiveness and economic
power
D) U.S. high-tech companies, such as computer manufacturers, have been hit hard by the
NAFTA provisions
Answer: C
Diff: 3
Page Ref: 74
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
23
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Business Expansion Plan (Scenario)
As a business expansion director, Shana's goal is to scout out potential locations and basically
provide input on how her company should proceed with its planned expansion to Europe. There
are many options, including maintaining the businesses head office in the United States and
sending over company representatives when necessary or establishing separate operations
facilities abroad and hiring locals as managers.
105) If Shana's company decides to open another company in France but maintain its
management in the United States, it would be considered a ________.
A) transnational corporation
B) global company
C) regional trade alliance
D) multidomestic corporation
Answer: B
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
106) If Shana's company decides to open a completely new operation in Germany, tailoring the
company to local customs and marketing strategies and hiring local managers, they would be
considered a ________.
A) transnational corporation
B) global company
C) regional trade alliance
D) multidomestic corporation
Answer: D
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
107) If Shana's company eliminates country-designated locations and reorganizes based on
industry groups, it would best be considered a ________.
A) borderless organization
B) strategic partnership
C) global business alliance
D) multidomestic corporation
Answer: A
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
108) One section of Shana's company's business plan involves strategic alliances and joint
ventures. This section is most likely focused on the ________ phase of the company's global
business expansion.
A) legal
B) middle
C) final
D) preliminary
Answer: C
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
The European Expansion (Scenario)
You have been hired by a company to look at the ways to best move the company into the
European market, but you have to first determine what kind of company you are dealing with.
109) If the company that has hired you is primarily used by manufacturing organizations, it is a
________.
A) licensing company
B) franchising company
C) strategic alliance
D) joint venture
Answer: A
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
110) If the company that has hired you is really a partnership between an organization and a
foreign company, in which both share resources and knowledge in developing new products,
then it is a ________.
A) licensing company
B) franchising company
C) strategic alliance
D) joint venture
Answer: C
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
25
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Software Entrepreneurial Venture (Scenario)
Theodore and James have formed an entrepreneurial venture to develop software for banks and
other financial institutions. Their company is growing, but in looking for opportunities in the
future, they decide to explore international operations.
111) The international operations in their firm continue to grow. Theodore and James have come
to see that decentralized management using foreign nationals to run operations in the host
countries works well. Their firm has developed into a(n) ________ organization.
A) transnational
B) multidomestic
C) borderless
D) franchise
Answer: B
Diff: 2
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
112) Theodore and James decide to allow a firm in Europe to use the rights to their software, its
brand name, and software specifications in return for a lump-sum payment. The firm is a service
organization that plans to use the software to assist its customers. This agreement is known as a
________.
A) strategic alliance
B) licensing agreement
C) franchise
D) foreign subsidiary
Answer: C
Diff: 3
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
113) John found out that, compared to managers in many other countries, U.S. managers are
accustomed to legal and political systems that are ________.
A) stable
B) fixed
C) neutral
D) unaffiliated
Answer: A
Diff: 1
Page Ref: 79
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
26
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
A New Assignment (Scenario)
Mary was given a new assignment to head up the European division for her multinational
organization. Before leaving the United States o take up her new assignment she needs training
to manage and understand the European division.
114) Mary found that wealthier nations, such as the United States, tend to ________.
A) have high uncertainty avoidance
B) be individualistic
C) be collectivist
D) have high power distance
Answer: B
Diff: 2
Page Ref: 81
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
115) Mary also found out that in some countries, such as Venezuela, titles, rank, and status carry
a lot of weight. These countries have high ________ .
A) uncertainty avoidance
B) nurturing
C) collectivist
D) power distance
Answer: D
Diff: 2
Page Ref: 81
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
116) Mary learned that European cultures did not have high anxiety, nervousness, and stress.
This would examples of having high ________.
A) uncertainty avoidance
B) achievement orientation
C) future orientation
D) power distance
Answer: A
Diff: 2
Page Ref: 81
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
117) European multinational firms commonly use a ________ approach because they are
operating in multiple countries with different institutional environments.
A) supply chain
B) transnational
C) global approach
D) multidomestic approach
Answer: D
Diff: 2
Page Ref: 76
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
118) Mary needed to learn about each country's values and attitudes shared by individual which
referred to their ________
A) diverse culture
B) global culture
C) national culture
D) high-context culture
Answer: C
Diff: 2
Page Ref: 81
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
119) Mary also needed to learn about regional trading alliances and the impact on her division.
The alliance that had a direct impact on her division was ________
A) EU
B) NAFTA
C) SAARC
D) WTO
Answer: A
Diff: 2
Page Ref: 73
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
The Overseas Assignment (Scenario)
Christopher has a degree in business administration and has worked for a major corporation for 5
years. He is offered a chance to work in another country.
120) Through research on the Internet, Christopher finds that in this country's social framework,
people are expected to look after others in their family (or organization) and protect them when
they are in trouble. This society tends to support ________.
A) collectivism
B) parochialism
C) individualism
D) monotheism
Answer: A
Diff: 2
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
121) This new country's people are favorably influenced by Christopher's job title and the status
given by his experience of having worked in the home office for 5 years. This country has a high
________.
A) interest in attracting foreign executives
B) sense of uncertainty avoidance
C) uncertainty avoidance
D) power distance
Answer: D
Diff: 3
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
122) Through talking to executives in the international division, Christopher realizes that his
home country has the highest individualism, low power distance and uncertainty avoidance, and
a strong achievement orientation. He probably lives in ________.
A) Great Britain
B) Japan
C) the United States
D) Canada
Answer: C
Diff: 3
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
123) In a short essay, define parochialism. Next, discuss why parochialism is a problem for U.S.
managers and discuss reasons why it is important to overcome parochialism in today's business
environment.
Answer: Parochialism is the process of viewing the world solely through one's own eyes and
perspectives. People with a parochial attitude do not recognize that others have different ways of
living and working. Parochialism is a significant obstacle for managers working in a global
business world. If managers fall into the trap of ignoring others' values and customs and rigidly
applying an attitude of "ours is better than theirs" to foreign cultures, they'll find it difficult to
compete with other organizations around the world that are seeking to understand foreign
customs and market differences.
Diff: 1
Page Ref: 71
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
124) In a short essay, list and discuss the three attitudes managers might have toward
international business.
Answer: a. Ethnocentric attitude the parochialistic belief that the best work approaches and
practices are those of the home country. Managers with an ethnocentric attitude believe that
people in foreign countries do not have the needed skills, expertise, knowledge, or experience to
make the best business decisions as people in the home country do. They wouldn't trust foreign
employees with key decisions.
b. Polycentric attitude the view that managers in the host country know the best work
approaches and practices for running their business. Managers with a polycentric attitude view
every foreign operation as different and hard to understand. Thus, these managers are likely to
leave their foreign facilities alone and let foreign employees figure out how best to do things.
c. Geocentric attitude this is a world-oriented view that focuses on using the best approaches
and people from around the globe. Managers with this type of attitude believe that it's important
to have a global view both at the organization's headquarters in the home country and in the
various foreign work facilities. Major issues and decisions are viewed globally by looking for the
best approaches and people regardless of origin.
Diff: 2
Page Ref: 72
Topic: What's Your Global Perspective?
Skill: AACSB: Globalizations
125) In a short essay, discuss the challenges and opportunities of an organization using strategic
alliances to enter foreign markets..
Answer: The most common strategy for international expansion has become strategic alliances;
which is, cooperative arrangements between two firms in to share resources to accomplish a
common desirable goal. By forming strategic alliances, organizations can share the costs and
risks of entering new markets. In addition, strategic alliances also allow an organization to
outsource some of its functions, which would help control costs and enhance its competitive
abilities in global business.
Not all strategic alliances are successful. The level of trust and the way an alliance is managed
are critical to success. Outsourcing alliances often fail due to differences in culture and language.
A country’s institutional environment also affects strategic alliances. In addition to the particular
institutions in place, the stability of those institutions is important, because economic uncertainty
can stunt profit potential, making a new market more risky and less desirable.
Diff: 2
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
126) In a short essay, explain the differences among a multidomestic corporation, a global
company, and a borderless organization. Include examples of companies for each of the types of
organizations discussed.
Answer: a. A multidomestic corporation is a multinational corporation that decentralizes
management and other decisions to the local country. This type of organization doesn't attempt to
replicate its domestic successes by managing foreign operations from its home country. Instead,
local employees typically are hired to manage the business and marketing strategies are tailored
to that country's unique characteristics. This type of globalization reflects the polycentric
attitude. For example, Switzerland-based Nestle can be described as a multidomestic corporation.
With operations in almost every country on the globe, its managers match the company's
products to its consumers. In parts of Europe, Nestle sells products that are not available in the
United States or Latin America. Another example of a multidomestic is Frito-Lay, a division of
PepsiCo, which markets a Dorito chip in the British market that differs in both taste and texture
from the U.S. and Canadian version. Many consumer companies manage their global businesses
using this approach because they must adapt their products and services to meet the needs of the
local markets.
b.
A second type of MNC, called a global company centralizes its management and other
decisions in the home country. These companies treat the world market as an integrated whole
and focus on the need for global efficiency. Although these companies may have considerable
global holdings, management decisions with company-wide implications are made from
headquarters in the home country. This approach to globalization reflects the ethnocentric
attitude. Some examples of companies that can be considered global companies include Sony,
Deutsche Bank AG, and Merrill Lynch.
c.
Other companies are going international by eliminating structural divisions that impose
artificial geographical barriers. This type of MNC is often called a transnational or borderless
organization, and reflects a geocentric attitude. For example, IBM dropped its organizational
structure based on country and reorganized into industry groups. And Spain's Telefonica
eliminated the geographic divisions between Madrid headquarters and its widespread phone
companies. The company will be organized, instead, along business lines such as Internet
services, cellular phones, and media operations. Managers choose this form of international
organization to increase efficiency and effectiveness in a competitive global marketplace.
Diff: 3
Page Ref: 76
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
127) In a short essay, describe how managers are affected by the global economic environment.
Name the four major global environmental factors that affect management, and explain why each
is important.
Answer: a. Type of economy the two major types of economies are market economies and
command economies. A market economy is one in which resources are primarily owned and
controlled by the private sector. A command economy is one in which economic decisions are
planned by a central government. Why would managers need to know about a country's
economic system? Because it has the potential to constrain decisions and actions. Other
economic issues a manager might need to understand include currency exchange rates, inflation
rates, and diverse tax policies.
b. Currency strength a global firm's profits can vary dramatically depending on the strength
of its home currency and the currencies of the countries in which it operates. For instance,
China's revaluation of the yuan in the summer of 2005 was cheered by General Motors even
though a stronger yuan could raise the costs of Chinese-made parts that GM buys. Why would
GM be happy about higher costs? Because a rising Chinese yuan could also lead to a stronger
Japanese yen, which could hurt rival Toyota Motor Corporation. Any revaluation of a nation's
currency can affect managers' decisions and the level of a company's profits.
c. Inflation inflation means that prices for products and services are going up. But it also
affects interest rates, exchange rates, the cost of living, and the general confidence in a country's
political and economic system. In most developing countries, consumer prices are rising more
slowly than they were in the late 1990s, although inflation rates can, and do, vary widely. The
World Factbook shows country inflation rates ranging from a negative 3.6 percent (Nauru) to a
whopping positive 246 percent (Zimbabwe). Managers need to monitor inflation trends so they
can make good decisions and anticipate any possible changes in a country's monetary policies.
d. Diverse tax policies diverse tax policies are a major worry for a global manager. Some host
countries are more restrictive than the organization's home country. Others are far more lenient.
About the only certainty is that tax rules differ from country to country. Managers need exact
information on the various tax rules in countries in which they operate to minimize their
business's overall tax obligation.
Diff: 2
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Topic: Managing in a Global Environment
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128) In a short essay, list and explain Hofstede's five dimensions of national culture.
Answer: a. Individualism versus collectivism individualism refers to a loosely knit social
framework in which people are supposed to look after their own interests and those of their
immediate family. They can do so because of the large amount of freedom that an individualistic
society allows its citizens. The opposite is collectivism, which is characterized by a tight social
framework in which people expect others in groups of which they are a part to look after them
and to protect them when they are in trouble. In exchange, they feel they owe absolute loyalty to
the group.
b. Power distance Hofstede used the term power distance as a measure of the extent to which a
society accepts the fact that power in institutions and organizations is distributed unequally. A
large power distance society accepts wide differences in power in organizations. Employees
show a great deal of respect for those in authority. Titles, rank, and status carry a lot of weight.
When negotiating in large power distance countries, companies find that it helps to send
representatives with titles at least as impressive as those with whom they are bargaining do. In
contrast, a low power distance society plays down inequalities as much as possible. Superiors
still have authority, but employees are not afraid of or in awe of the boss.
c. Uncertainty avoidance uncertainty avoidance is a cultural measure of the degree to which
people tolerate risk and unconventional behavior. A society that's high in uncertainty avoidance
is characterized by a high level of anxiety among its people, which manifests itself in
nervousness, high stress, and aggressiveness. Because people in these cultures feel threatened by
uncertainty and ambiguity, political and social mechanisms are created to provide security and to
reduce risk. Organizations in these cultures are likely to have formal rules and little tolerance for
unusual ideas and behaviors.
d. Achievement and nurturing the fourth cultural dimension, like individualism and
collectivism, is a dichotomy. Achievement is the degree to which values such as assertiveness,
the acquisition of money and material goods, and competition prevail. Nurturing is a national
cultural attribute that emphasizes relationships and concern for others.
e. Long-term and short-term orientation people in long-term orientation cultures look to the
future and value thrift and persistence.A short-term orientation values the past and present and
emphasizes respect for tradition and fulfilling social obligations.
Diff: 2
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Topic: Managing in a Global Environment
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129) In a short essay, discuss the dimensions of the GLOBE framework. Describe how each
dimension compares to Hofstede's five dimensions of national culture.
Answer: The GLOBE (Global Leadership and Organizational Behavior Effectiveness) research
program, which began in 1993, continues to investigate cross-cultural leadership behaviors.
Using data from over 18,000 middle managers in 62 countries, the GLOBE research team
identified 9 dimensions on which national cultures differ:
a. Assertiveness: The extent to which a society encourages people to be tough, confrontational,
assertive, and competitive versus modest and tender. This is essentially equivalent to Hofstede's
achievement dimension.
b. Future orientation: The extent to which a society encourages and rewards future-oriented
behaviors such as planning, investing in the future, and delaying gratification. This is essentially
equivalent to Hofstede's long-term/short-term orientation.
c. Gender differentiation: The extent to which a society maximizes gender role differences as
measured by how much status and decision-making responsibilities women have. This dimension
has no equivalent in Hofstede's framework.
d. Uncertainty avoidance: Similar to Hofstede's description, the GLOBE team defined this
dimension as a society's reliance on social norms and procedures to alleviate the unpredictability
of future events.
e. Power distance: As did Hofstede, the GLOBE team defined this as the degree to which
members of a society expect power to be unequally shared.
f. Individualism/collectivism: Again, this term was defined, as Hofstede did, as the degree to
which individuals are encouraged by societal institutions to be integrated into groups within
organizations and society.
g. In-group collectivism: In contrast to focusing on societal institutions, this dimension
encompasses the extent to which members of a society take pride in membership in small groups,
such as their family and circle of close friends, and the organizations in which they're employed.
This dimension has no equivalent in Hofstede's framework.
h. Performance orientation: This refers to the degree to which a society encourages and
rewards group members for performance improvement and excellence. This dimension is similar
to Hofstede's achievement orientation.
i. Humane orientation: This is defined as the degree to which a society encourages and rewards
individuals for being fair, altruistic, generous, caring, and kind to others. This is similar to
Hofstede's nurturing dimension.
Diff: 2
Page Ref: 82
Topic: Managing in a Global Environment
Skill: AACSB: Globalizations
34
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
130) In a short essay discuss the methods firms can use to enter new global markets.
Answer: Firms can enter new foreign markets in the following ways: exporting products to the
new market, licensing products to local firms, acquiring or creating strategic alliances with local
firms, or establishing operations within the new market. Exporting involves manufacturing
products in a firm’s home country and shipping them to a foreign market. Licensing
arrangements allow a local firm in the new market to manufacture and distribute a foreign firm’s
products. Strategic alliances are cooperative arrangements between two firms in which they
agree to share resources to accomplish a mutually desirable goal. Acquisitions of local firms
made by foreign firms to enter a new international market are called cross-border acquisitions.
When a company creates a wholly owned subsidiary in a foreign country, it makes a direct
investment to establish a business that it solely owns and controls there.
Diff: 3
Page Ref: 77
Topic: Understanding the Global Environment
Skill: AACSB: Globalizations
35
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 5 Social Responsibility and Managerial Ethics
1) The classical view of organizational social responsibility is that management's only social
responsibility is to maximize profits.
Answer: TRUE
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
2) The most outspoken advocate of the classical view of organizational social responsibility is
Milton Friedman.
Answer: TRUE
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
3) In the socioeconomic view of organizational social responsibility, maximizing profits is not a
company's only priority.
Answer: TRUE
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
4) Socially responsible businesses tend to have less-secure long-run profits.
Answer: FALSE
Diff: 3
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
5) One argument against businesses championing social responsibility issues is that businesses
already have too much power.
Answer: TRUE
Diff: 3
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
6) Possession of resources is an argument for social responsibility.
Answer: TRUE
Diff: 2
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
7) A business has fulfilled its social obligation when it meets economic, legal, and ethical
obligations.
Answer: FALSE
Diff: 2
Page Ref: 92-93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
8) The difference between an organization's social obligation and social responsiveness is the
legal aspect.
Answer: FALSE
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
9) Though the outcomes are not perfectly measured, the majority of research studies show a
positive relationship between corporate social involvement and economic performance.
Answer: TRUE
Diff: 1
Page Ref: 94
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
10) Socially responsible mutual stock funds may offer insight into the issue of social
responsibility and economic performance.
Answer: TRUE
Diff: 1
Page Ref: 94
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
11) Socially responsible mutual stock funds use some type of greening of management.
Answer: FALSE
Diff: 2
Page Ref: 94
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
12) The term "shades of green" refers to the level of environmental responsibility that a company
has.
Answer: TRUE
Diff: 1
Page Ref: 97
Topic: Green Management
13) The market approach to going green is when organizations respond to multiple demands of
stakeholders.
Answer: FALSE
Diff: 2
Page Ref: 97
Topic: Green Management
14) The activist approach to going green is when an organization looks for ways to respect and
preserve the earth and its natural resources.
Answer: TRUE
Diff: 2
Page Ref: 97
Topic: Green Management
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
15) A company that displays an ability to effectively manage environmental and social factors
may be named as one of the 100 most sustainable corporations in the world.
Answer: TRUE
Diff: 1
Page Ref: 98
Topic: Green Management
16) Sharing corporate values is an approach to managing in which managers establish, promote,
and practice an organization's shared values.
Answer: FALSE
Diff: 1
Page Ref: 101
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
17) A company's shared values act as guideposts for managerial decisions and actions.
Answer: TRUE
Diff: 2
Page Ref: 101
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
18) Values-based management is based on the close link between an organization's decisions and
activities and its impact on the natural environment.
Answer: FALSE
Diff: 2 Page Ref: 101
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
19) In the preconventional stage of moral development, individuals make a clear effort to define
moral principles apart from the authority of the groups to which they belong or of society in
general.
Answer: FALSE
Diff: 2
Page Ref: 99
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
20) People proceed through the six stages of moral development in lockstep fashion.
Answer: TRUE
Diff: 2
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
21) The term "values" refers to the rules and principles that define right and wrong conduct.
Answer: FALSE
Diff: 2
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
22) A structural design that continuously reminds employees of what is ethical is less likely to
encourage ethical behavior.
Answer: FALSE
Diff: 1
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
23) Employees may be pressured to do "whatever is necessary" to look good on the outcome
variables when they are evaluated only on the results.
Answer: TRUE
Diff: 1
Page Ref: 101
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
24) The Global Compact identifies human rights principles for doing business globally that
includes making certain that corporations are not complicit in human rights abuses.
Answer: TRUE
Diff: 2
Page Ref: 103
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
25) The Organization for Economic Co-Operation and Development (OECD) developed a global
code of ethics.
Answer: FALSE
Diff: 2
Page Ref: 103
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
26) The best thing managers can do to provide ethical leadership is be a good role model.
Answer: TRUE
Diff: 1
Page Ref: 109
Topic: Social Responsibility and Ethics Issues in Today's World
Skill: AACSB: Ethics
27) Employees who raise ethical concerns or issues to others inside or outside the organization
are called social activists.
Answer: FALSE
Diff: 2
Page Ref: 109
Topic: Social Responsibility and Ethics Issues in Today's World
Skill: AACSB: Ethics
28) Fair trade proponents are examples of whistleblowers.
Answer: FALSE
Diff: 3
Page Ref: 109
Topic: Social Responsibility and Ethics Issues in Today's World
Skill: AACSB: Ethics
4
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
29) Under the Sarbanes-Oxley Act, whistleblowers in the United States who report suspected
corporate violations of laws now have broad protection from reprisals and retaliation.
Answer: TRUE
Diff: 2
Page Ref: 109
Topic: Social Responsibility and Ethics Issues in Today's World
Skill: AACSB: Ethics
30) Employee relations, philanthropy, pricing, resource conservation, product quality and safety,
and doing business in countries that violate human rights are some obvious examples of
________.
A) social responsibility ethics that managers must decide on a daily basis
B) social responsibility issues that employees must confront while at work
C) areas of social responsibility that influence managers, not employees
D) decisions that managers face that have a social responsibility dimension
Answer: D
Diff: 3
Page Ref: 92
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
31) The classical view of social responsibility holds that management's only social responsibility
is to ________.
A) maximize organizational profits for stockholders
B) maximize adherence to the laws for stockholders
C) maximize organizational profits for stakeholders
D) minimize adherence to the laws for stockholders
Answer: A
Diff: 1
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
32) The most outspoken advocate of the classical view of social responsibility is economist and
Nobel laureate, ________.
A) Carnegie Milton
B) Charles Darwin
C) Milton Freeman
D) Milton Friedman
Answer: D
Diff: 3
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
5
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
33) Individuals and groups affected by an organization's actions are ________.
A) consumers
B) interested parties
C) stockholders
D) beneficiaries
Answer: C
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
34) According to the classical view, corporate managers should ________.
A) emphasize charitable donations
B) maximize value to stockholders
C) maximize value to shareholders
D) represent society whenever possible
Answer: B
Diff: 1
Page Ref: 93
Topic: What Is Social Responsibility?
35) A leading proponent of the classical view argues that anytime managers decide on their own
to spend their organization's resources for the "social good," they are ________.
A) contributing social benefits in the name of goodwill
B) following governmental regulations
C) helping make society a better place for everyone to live
D) adding to the costs of doing business
Answer: D
Diff: 3
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
36) Which of the following is associated with the classical view of social responsibility?
A) economist Robert Reich
B) concern for social welfare
C) stockholder financial return
D) voluntary activities
Answer: C
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
6
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
37) The socioeconomic view is that management's social responsibility goes beyond making
profits to include ________.
A) placing members of society on welfare
B) protecting and improving society's welfare
C) minimizing the welfare of society in exchange for profits
D) protecting and improving the organization's profits
Answer: B
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
38) Proponents of the socioeconomic view of social responsibility believe that business
organizations are ________.
A) not just merely economic institutions
B) just merely economic institutions
C) to be leaders in social responsibility
D) not to be involved in social responsibility, but should maximize profits for stakeholders
Answer: A
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
39) The belief that businesses should be responsible because such actions are right for their own
sake is known as which argument for social responsibility?
A) public expectation
B) ethical obligation
C) public image
D) discouragement of further government regulation
Answer: B
Diff: 2
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
40) The belief that businesses that help solve difficult social problems create a desirable
community and attract and keep skilled employees is known as which argument for social
responsibility?
A) ethical obligation
B) public image
C) better environment
D) possession of resources
Answer: C
Diff: 2
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
7
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
41) Which argument for social responsibility puts forth the belief that by becoming socially
responsible businesses can expect to have less government regulation?
A) discouragement of further government regulation
B) stockholder interests
C) public expectations
D) public image
Answer: A
Diff: 2
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
42) Which argument for social responsibility puts forth the belief that an imbalance between the
large amount of power held by firms and their responsibility is harmful to the public good?
A) public expectation
B) ethical obligation
C) public image
D) balance of responsibility and power
Answer: D
Diff: 1
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
43) The belief that businesses have the financial, technical, and managerial resources to support
needed public and charitable projects is known as which argument?
A) public expectations
B) ethical obligations
C) public image
D) possession of resources
Answer: D
Diff: 2
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
44) The belief that businesses are being socially responsible when they attend only to economic
interests is known as which argument against a firm being socially responsible?
A) dilution of purpose
B) violation of profit maximization
C) costs
D) too much power
Answer: B
Diff: 1
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
8
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
45) The belief that the costs of social activity are passed on as higher prices to consumers is
known as which argument against a firm being socially responsible?
A) violation of profit maximization
B) dilution of purpose
C) costs
D) lack of skills
Answer: C
Diff: 2
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
46) The belief that a firm's pursuit of social goals would give them too much power is known as
what argument in opposition to a firm being socially responsible?
A) costs
B) lack of skills
C) lack of broad public support
D) too much power
Answer: D
Diff: 2
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
47) The belief that business leaders should not direct social policy because there is no direct line
of social accountability to the public is known as what argument against a firm being socially
responsible?
A) dilution of purpose
B) costs
C) too much power
D) lack of accountability
Answer: D
Diff: 2
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
48) Social obligation is the obligation of a business to meet its ________.
A) social and technological responsibilities
B) economic and social responsibilities
C) technological and economic responsibilities
D) economic and legal responsibilities
Answer: D
Diff: 3
Page Ref: 92-93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
9
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
49) Under the concept of social obligation, the organization ________.
A) does what it can to meet the law, and a little bit more for stakeholders
B) fulfills its obligation to the law and its stakeholders
C) fulfills its obligation to the stakeholders, which makes it fulfill the law, too
D) does the minimum required by law
Answer: D
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
50) Social responsiveness refers to the capacity of a firm to adapt to changing ________.
A) societal conditions
B) organizational conditions
C) societal leaders
D) organizational managers
Answer: A
Diff: 1
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
51) ________ is defined as a business firm's obligation, beyond that required by law and
economics, to pursue long-term goals that are good for society.
A) Social obligation
B) Social responsibility
C) Social screening
D) Values-based management
Answer: B
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
52) The aspect that differentiates social responsibility from other similar concepts is that it
________.
A) adds an ethical imperative
B) adds a legal imperative
C) adds a moral imperative
D) considers social norms
Answer: A
Diff: 1
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
53) In the United States, a company that meets federal pollution control standards and does not
discriminate in hiring, promotion, and pay ________.
A) is meeting its social obligation and more because it is trying to be a good citizen
B) is not even meeting its social obligation, though there are laws in some of these areas of social
responsibility
C) is meeting its social obligation and nothing more because laws mandate these actions
D) is meeting its social responsiveness and nothing more because society demands these actions
Answer: C
Diff: 3
Page Ref: 94
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
54) When a firm advertises that it only uses recycled paper products, it is ________.
A) meeting its social obligation
B) meeting social responsibilities
C) being socially responsive
D) paying attention to the bottom line
Answer: C
Diff: 3
Page Ref: 94
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
55) One should be cautious in the interpretation, but a summary of more than a dozen studies
analyzing the relationship between organizational social responsibility and economic
performance provides what conclusion?
A) Being socially responsible causes good economic performance.
B) Good economic performance allows firms to be socially responsible.
C) There is a positive relationship between corporate social involvement and economic
performance.
D) Corporate social involvement tends to devalue stock prices in the long run.
Answer: C
Diff: 3
Page Ref: 94
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
56) ________ provides a way for individual investors to support socially responsible companies.
A) NASDAQ
B) A socially responsible mutual stock fund
C) A bond
D) Going green
Answer: B
Diff: 2
Page Ref: 94
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
11
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
57) Applying social criteria to an investment decision refers to ________.
A) socioeconomic view
B) social responsiveness
C) social responsibility
D) social screening
Answer: D
Diff: 2
Page Ref: 94
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
58) There is ________ to say that a company's socially responsible actions significantly hurt its
long-term economic performance.
A) not any evidence
B) little evidence
C) a lot of evidence
D) mounting evidence
Answer: A
Diff: 3
Page Ref: 96
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
59) The recognition of the close link between an organization's decisions and activities and its
impact on the natural environment is referred to as ________.
A) corporate social responsibility
B) social responsiveness
C) shared corporate values
D) the greening of management
Answer: D
Diff: 2
Page Ref: 96
Topic: Green Management
60) Which of the following is not an approach organizations can take with respect to
environmental issues?
A) legal
B) market
C) stakeholder
D) responsibility
Answer: D
Diff: 2
Page Ref: 97
Topic: Green Management
12
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
61) The ________ approach to environmental issues is when organizations respond to
environmental preferences of their customers.
A) legal
B) market
C) stakeholder
D) responsibility
Answer: B
Diff: 2
Page Ref: 97
Topic: Green Management
62) With the stakeholder approach of dealing with environmental issues, the organization
chooses to respond to ________.
A) the demands made by the strongest stakeholders
B) multiple demands made by social activists
C) the demands made by governmental stakeholders
D) multiple demands made by stakeholders
Answer: D
Diff: 3
Page Ref: 97
Topic: Green Management
63) Which of the following approaches toward environmental issues exhibits the highest degree
of environmental sensitivity and is a good illustration of social responsibility?
A) legal approach
B) market approach
C) stakeholder approach
D) activist approach
Answer: D
Diff: 2
Page Ref: 97
Topic: Green Management
64) ________ is an approach to managing in which managers establish, promote, and practice
what an organization stands for and believes in.
A) Cause-related marketing
B) Values-based management
C) Ethical marketing
D) Belief management
Answer: B
Diff: 2
Page Ref: 101
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
65) An organization's values reflect ________.
A) what it stands for and what it believes in
B) management
C) the board of directors' values
D) their profit goals
Answer: A
Diff: 3
Page Ref: 101
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
66) Values shared among the organizational members can serve as ________.
A) a reason to follow federal and state environmental laws
B) a guidepost for managerial decisions to invest in new technology
C) a way to shape managerial decisions to invest in economic conditions
D) a guidepost for managerial decisions and actions
Answer: D
Diff: 3
Page Ref: 101
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
67) Which of the following is a basic definition of ethics?
A) moral guidelines for behavior
B) rules for acknowledging the spirit of the law
C) rules or principles that define right and wrong conduct
D) principles for legal and moral development
Answer: C
Diff: 2
Page Ref: 99
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
68) Reasoning at the ________ level of moral development indicates that moral values reside in
maintaining the conventional order and the expectations of others.
A) preconventional
B) conventional
C) principled
D) arrival
Answer: B
Diff: 1
Page Ref: 99
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
14
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
69) A personality measure of a person's convictions is ________.
A) moral development
B) ego strength
C) locus of control
D) social desirability
Answer: B
Diff: 2
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
70) ________ is a personality attribute that measures the degree to which people believe they
control their own fate.
A) Ego strength
B) Locus of control
C) Social responsibility
D) Social obligation
Answer: B
Diff: 1
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
71) To shape employees’ ethical behavior, managers should understand that ________.
A) people's judgement about right and wrong differ
B) ethical judgement is unrelated to a person's upbringing
C) people typically use only one approach to ethical decision-making
D) all employees reach the highest stage in moral development
Answer: A
Diff: 2
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
72) A manager who believes that "she worked hard and met the productivity goals despite bad
weather" is displaying what individual characteristic?
A) strong self-image
B) high moral development
C) low impression management
D) internal locus of control
Answer: D
Diff: 2
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
15
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
73) Which of the following organizational structural characteristics would most likely result in
managerial ethical behavior?
A) few job descriptions
B) formal rules
C) mixed messages from authority figures
D) performance appraisal systems focused on outcomes
Answer: B
Diff: 2
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
74) Which of the following is true concerning the impact of organizational culture on ethical
behavior?
A) Low conflict tolerance leads to ethical behavior.
B) A strong culture will support high ethical standards.
C) Conflict tolerance is related to unethical behavior.
D) A culture that is high in control tends to encourage unethical behavior.
Answer: B
Diff: 2
Page Ref: 101
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
75) Issue intensity, as an issue that affects ethical behavior, is described as ________.
A) the characteristics of the ethical issue itself
B) the level of control and influence one has over the event
C) the cultural strength of the organization
D) the organizational structure
Answer: A
Diff: 3
Page Ref: 102
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
76) Which of the following is not one of the six determinants that are relevant in deciding issue
intensity?
A) How great a harm (or benefit) is done to victims (or beneficiaries) of the ethical act in
question?
B) What is the probability that your act will be discovered?
C) How much consensus is there that the act is evil (or good)?
D) What is the length of time between the act in question and its expected consequences?
Answer: B
Diff: 2
Page Ref: 102
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
16
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
77) The Foreign Corrupt Practices Act makes it illegal for U.S. firms to ________.
A) make any cash payment for deferential treatment in a foreign transaction
B) make any payment over 5 percent of total cost toward administrative overhead in foreign
transactions
C) knowingly corrupt a foreign official
D) make any payment to foreign clerical or ministerial employees in exchange for service
Answer: C
Diff: 3 Page Ref: 103
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
78) Global organizations must ________ their ethical guidelines so that employees know what is
expected of them while working in a foreign location.
A) clarify
B) provide
C) establish
D) broaden
Answer: A
Diff: 3
Page Ref: 103
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
79) ________ is a document that outlines principles for doing business globally in the areas of
human rights, labor, the environment, and anticorruption.
A) A code of ethics
B) The Global Compact
C) The Foreign Corrupt Practices Act
D) Global Ethics
Answer: B
Diff: 2
Page Ref: 103
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
80) Freedom of association and the effective recognition of the right to collective bargaining are
principles for doing business globally in the area of ________.
A) anticorruption
B) human rights
C) labor
D) the environment
Answer: C
Diff: 2
Page Ref: 103
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
17
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
81) The Global Compact principle that businesses should undertake initiatives to promote greater
environmental responsibility, is a principle for doing business globally in the area of ________.
A) anticorruption
B) human rights
C) labor
D) the environment
Answer: D
Diff: 3
Page Ref: 103
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
82) Which of the following is not a way for management to reduce unethical behavior?
A) select individuals with high ethical standards
B) establish codes of conduct
C) provide ethics training
D) monitor employee telephone calls
Answer: D
Diff: 2
Page Ref: 104-108
Topic: Encouraging Ethical Behavior
Skill: AACSB: Ethics
83) A ________ is a formal statement of an organization's primary values and the ethical rules it
expects its employees to follow.
A) mission statement
B) statement of purpose
C) code of ethics
D) vision statement
Answer: C
Diff: 2
Page Ref: 104
Topic: Encouraging Ethical Behavior
Skill: AACSB: Ethics
84) The primary debate about ethics training programs is whether ________.
A) ethics can be taught
B) ethics is what causes misconduct
C) the programs cover misconduct outside the workplace
D) the programs give unethical individuals more ammunition
Answer: A
Diff: 2
Page Ref: 107
Topic: Encouraging Ethical Behavior
Skill: AACSB: Ethics
18
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
85) Why should managers assure whistle blowers that they will face no personal or career risks?
A) Using the rewards system is often not enough.
B) Many may be reluctant to raise ethical concerns or issues because of the perceived risks.
C) Some may not wish to push their values on to other employees.
D) Most do not want to lead by example.
Answer: B
Diff: 3
Page Ref: 109
Topic: Social Responsibility and Ethics Issues in Today's World
Skill: AACSB: Ethics
86) Many companies have ________ to encourage whistle blowers to come forward.
A) paid more attention to employees' behavior
B) posted the Sarbanes-Oxley Act
C) set up toll-free ethics hotlines
D) shared their values
Answer: C
Diff: 2
Page Ref: 109
Topic: Social Responsibility and Ethics Issues in Today's World
Skill: AACSB: Ethics
87) A ________ is an individual or organization who seeks out opportunities to improve society
by using practical, innovative, and sustainable approaches.
A) business entrepreneur
B) social entrepreneur
C) social impact manager
D) whistle blower
Answer: B
Diff: 1
Page Ref: 110
Topic: Social Responsibility and Ethics Issues in Today's World
Skill: AACSB: Ethics
19
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Two Opposing Views of Social Responsibility (Scenario)
The board of directors of Acme Generating Corporation is meeting to consider the construction
of a new electrical generation facility somewhere along the Muspetan River basin. Director
Appleton would like the facility to be a coal-burning plant located in a remote area because the
costs of this method of generating electricity are moderate and any ash from the smokestacks
would not affect the city. Director Witworth wants a nuclear plant located near the city of
Muspetan since the city needs the electricity the most, and not only is nuclear production the
least-expensive generating method but it also utilizes renewable fuels. Director Jossleman wants
a generating plant that uses combustible fuels collected from the city's garbage; moreover, he
wants the metals and glass sent to recycling and the food materials buried in the city landfill. By
locating near the downtown government area, steam could be used for heating the government
buildings after it has passed through the generating turbines, and the exhaust would be
"scrubbed" to make it clean. He believes that this approach would provide the electricity needed
for the growing city and the heat for government buildings, and they would be recycling
resources and minimizing the impact on the city's landfill. The other directors have not offered
any input to the discussion.
88) Director Witworth is following which of the social responsibility views?
A) social responsiveness
B) social obligation
C) classical view of social responsibility
D) socioeconomic view of social responsibility
Answer: C
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
89) Director Appleton is following which of the social responsibility views?
A) social responsiveness
B) social obligation
C) classical view of social responsibility
D) socioeconomic view of social responsibility
Answer: D
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
90) Director Jossleman is being mostly ________.
A) classically social responsible
B) classically social responsive
C) socially obligated
D) socially responsive
Answer: D
Diff: 3
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
20
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
An Academic Question (Scenario)
As a university student, you wonder about some of the practices in the university and just how
some of these practices should be evaluated in reference to social issues.
91) If your university were paying minimum wage when necessary and applying the minimum
standard to laws, such as affirmative action, it would be said to have fulfilled its ________.
A) social obligation
B) social responsibility
C) social responsiveness
D) social expectation
Answer: A
Diff: 2
Page Ref: 92-93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
92) If your university provides job-share programs, builds a day-care facility, and only uses
recycled paper, it could be said to be ________.
A) fulfilling its social obligation
B) socially aware
C) socially responsive
D) socially image conscious
Answer: C
Diff: 2
Page Ref: 94
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
93) Which of the following is not a reason why it makes sense for your university to continue to
be socially responsive?
A) positive consumer image
B) lower cost
C) more dedicated workforce
D) more motivated workforce
Answer: B
Diff: 1
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
94) If your state legislature criticized your university for incurring the cost of being socially
responsive, the university might point to a series of studies that indicates that the relationship
between corporate social involvement and economic performance is ________.
A) very negative
B) negative
C) neutral
D) positive
Answer: D
Diff: 2
Page Ref: 94
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
21
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
The Environmental Study (Scenario)
You have just been challenged by your supervisor to study and report your findings on
approaches that organizations use when dealing with the environment. Your boss tells you to
study the four major approaches, differentiate among them, and report to him in a week.
95) Under what approach do organizations exhibit little environmental sensitivity, obey rules and
regulations willingly without legal challenge, and even try to use these rules to their own
advantage?
A) stakeholder approach
B) market approach
C) legal approach
D) activist approach
Answer: C
Diff: 1
Page Ref: 97
Topic: Green Management
96) What approach deals with an organization responding to the environment because of the
preferences of their customers?
A) stakeholder approach
B) market approach
C) legal approach
D) activist approach
Answer: B
Diff: 1
Page Ref: 97
Topic: Green Management
97) Under what approach does the organization work to meet the environmental demands of
multiple groups of people including employees, suppliers, or the community?
A) stakeholder approach
B) market approach
C) legal approach
D) activist approach
Answer: A
Diff: 1
Page Ref: 97
Topic: Green Management
98) Under what approach does the organization look for ways to respect and preserve the earth
and its natural resources?
A) stakeholder approach
B) market approach
C) legal approach
D) activist approach
Answer: D
Diff: 1
Page Ref: 97
Topic: Green Management
22
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
An Academic Question (Scenario)
As a university student, you wonder about some of the practices in the university and just how
some of these practices should be evaluated in reference to social issues.
99) Your university has tried to promote the establishment of shared values so that all members
will understand its beliefs. The university has established ________ management.
A) values-based
B) image
C) socially respectable
D) social impact
Answer: A
Diff: 1
Page Ref: 101
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
Moral Development (Scenario)
You have had serious ideas of late about stealing money from petty cash in order to get back on
top of your back rent. Upon reading Chapter 5 of the textbook, you learn there are levels of
moral development, each composed of two stages. You are ashamed of your thoughts and read
more to see where you are in terms of your own moral development.
100) At what level is a person's choice between right or wrong based on personal characteristics
involved, such as physical punishment, reward, or exchange of favors?
A) principled level
B) preconventional level
C) conventional level
D) value level
Answer: B
Diff: 2
Page Ref: 99
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
101) At what level does ethical reasoning indicate that moral values reside in maintaining
expected standards and living up to the expectations of others?
A) principled level
B) preconventional level
C) conventional level
D) value level
Answer: C
Diff: 2
Page Ref: 99
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
23
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
102) At what level do individuals make a clear effort to define moral principles apart from
authority of the groups to which they belong or society in general?
A) principled level
B) preconventional level
C) conventional level
D) value level
Answer: A
Diff: 2
Page Ref: 99
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
Summing Up Social Responsibility (Scenario)
Max Proffit, director of research and development for National Products Company, has learned
that a new material has been developed in his department that appears as though it will work in
several products already being manufactured by National Products Company. He has discussed
the potential savings with his two assistants, Susie Merriweather and Moe Gaines, and Rush
Onward, vice president of product development. Susie has stated her opposition to the use of the
new product because its durability and flame retardance have not completed testing and have not
been certified by the company's third-party testing laboratory. Moe argues that the initial tests
that their R&D department completed indicate minimal problems with both durability and flame
retardance. Rush states that in several meetings he has recently attended, the company president
had repeatedly emphasized the need to increase earnings per share. Rush tells Max that a
decision has to be made within the week about the new products use by National Products
Company.
103) Moe Gaines's support of using the new product is an indication that he probably ________.
A) supports the greening of the organization's profits
B) has a strong ego strength
C) has a weak ego strength
D) is using the socioeconomic view of social responsibility
Answer: C
Diff: 3
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
104) If Max resists his impulse to okay the use of the product because of the need for increased
earnings per share, though the product has not been certified, he probably ________.
A) will be demoted to a lower-paying job
B) has a strong ego strength
C) will lose Susie as an employee because she will quit
D) has an external locus of control
Answer: B
Diff: 3
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
24
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
105) If Max approves the use of the product because of perceived pressure for the need of
increased earnings per share, though it has not been certified, he probably ________.
A) has a strong ego strength
B) is using the socioeconomic view of social responsibility
C) has an internal locus of control
D) has an external locus of control
Answer: D
Diff: 3
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
106) Susie's opposition to the use of the new product is an indication that she probably
________.
A) has an internal locus of control
B) has an external locus of control
C) has a weak ego strength
D) is using the classical view of social responsibility
Answer: A
Diff: 2
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
The Fee (Scenario)
Isaac Razzlefrat has been the import and export manager for Overseas Exports Company of New
Orleans, Louisiana, in a foreign country during the last 5 years. During this time, he has become
quite familiar with the national laws and with the local culture when sending goods through the
Customs inspectors step of the import/export process. Isaac has learned that the Customs
inspectors are paid low wages. He has also become well acquainted with the administrator of
customs for imports and exports in this country. Because of these familiarities, he has learned
that it is a normal practice to pay the Customs inspectors a payment prior to their accepting the
goods for inspection. Isaac has decided to pay an additional small "fee" to the Customs
inspectors when he has a rush order that needs to pass through customs quickly. Isaac recently
learned that his competitor from Utibana is also making monthly payments to the administrator
of customs, though other companies are not.
107) When Isaac follows the normal practice of payments to the Customs inspectors, he probably
feels as though ________.
A) his ego strength is weak
B) his ego strength is strong
C) his locus of control is internal
D) his locus of control is external
Answer: D
Diff: 3
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
25
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
108) Under the Foreign Corrupt Practices Act, the normal practice of payments to the Customs
inspectors is ________.
A) against the law regardless of it being a normal practice
B) okay because they receive low wages and it is an accepted part of doing business in that
country
C) okay because their duties are primarily clerical in nature
D) against the law because it could lead to smuggling of contraband out of the country
Answer: B
Diff: 2
Page Ref: 103
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
109) If Isaac were to make a monthly payment to the administrator of Customs as his competitor
from Utibana is doing, under the Foreign Corrupt Practices Act he would be ________.
A) following the law, because his competitor has made it a common practice
B) violating the law because it could lead to smuggling of contraband out of the country
C) violating the law because the administrator in not in an administrative or clerical duty position
that normally receives payments
D) following the law if the payment unless the payment is in excess of $1,000
Answer: C
Diff: 3
Page Ref: 103
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
110) When Isaac makes the small "fee" payments to get a rush order through the Customs
inspectors, under the Foreign Corrupt Practices Act he could be ________.
A) in violation of the law because of it not being a normal practice
B) okay because they receive low wages
C) okay because their duties are primarily clerical in nature
D) in violation of the law because it could lead to smuggling of contraband out of the country
Answer: A
Diff: 3
Page Ref: 103
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
26
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Ethics Training (Scenario)
You are an employee of a very large company, Corporate Company. Several employees
routinely have lunch at a local restaurant where most drink alcoholic beverages before returning
to work. In addition to this inappropriate behavior, several male coworkers call female
employees "babes" and freely use racial slurs. There have been many complaints and the
company has decided to use these issues as ethical training examples.
111) Taken individually, specific instances of ethics training to reduce or eliminate unethical
behaviors in an organization will ________.
A) definitely have some impact
B) probably not have much impact
C) significantly improve an organization's ethical climate
D) work to completely eliminate the problems
Answer: B
Diff: 3
Page Ref: 104
Topic: Encouraging Ethical Behavior
Skill: AACSB: Ethics
112) How might managers have identified the ethically questionable applicants even before they
became part of the workforce?
A) by giving favored treatment to friends who apply
B) by putting pressure on employees to complete more work in less time
C) through communication
D) through interviews, tests, and background checks
Answer: D
Diff: 2
Page Ref: 104
Topic: Encouraging Ethical Behavior
Skill: AACSB: Ethics
113) The company brings in help from outside to evaluate the situation.The routine evaluations
that are performed regularly are called ________.
A) ethical training sessions
B) formal protective mechanisms
C) independent social audits
D) informal behavior modification
Answer: C
Diff: 1
Page Ref: 107
Topic: Encouraging Ethical Behavior
Skill: AACSB: Ethics
27
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
114) An alternative for the organization to provide formal means that protect employees who
face ethical dilemmas so that they can do what is right without fear of reprimand would be
________.
A) ethical training sessions
B) formal protective mechanisms
C) independent social audits
D) informal behavior modification
Answer: B
Diff: 2
Page Ref: 108
Topic: Encouraging Ethical Behavior
Skill: AACSB: Ethics
115) Compare and contrast the ideas of social obligation and social responsiveness.
Answer: Social obligation is the obligation of a business to meet its economic and legal
responsibilities. The organization does only what it is obligated to do and reflects the classical
view of social responsibility. In contrast to social obligation, however, both social responsibility
and social responsiveness go beyond merely meeting basic economic and legal standards. Social
responsiveness refers to the capacity of a firm to adapt to changing social conditions. The idea of
social responsiveness stresses that managers make practical decisions about the societal actions
in which they engage.A socially responsive organization is guided by social norms and acts the
way it does because of its desire to satisfy some popular social need. The example the textbook
gives is that managers at American Express Company identified three themes–community
service, cultural heritage, and economic independence to serve as guides for deciding which
worldwide projects and organizations to support. By making these choices, managers were
"responding" to what they felt were important social needs.
Diff: 2
Page Ref: 92-93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
28
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
116) In a short essay, list and discuss five arguments in favor of business social responsibility
and five arguments against it.
Answer:
Arguments in favor of business social responsibility include:
a. Public expectations public opinion now supports businesses pursuing economic and social
goals.
b. Long-run profits socially responsible companies tend to have more secure long-run profits.
c. Ethical obligation businesses should be socially responsible because responsible actions are
the right thing to do.
d. Public image businesses can create a favorable public image by pursuing social goals.
e. Better environment business involvement can help solve difficult social problems.
f. Discouragement of further governmental regulation by becoming socially responsible,
businesses can expect less government regulation.
g. Balance of responsibility and power businesses have a lot of power and an equally large
amount of responsibility is needed to balance against that power.
h. Stockholder interests social responsibility will improve a business's stock price in the long
run.
i. Possession of resources businesses have the resources to support public and charitable
projects that need assistance.
j. Superiority of prevention over cures businesses should address social problems before they
become serious and costly to correct.
Arguments against business social responsibility include:
a. Violation of profit maximization business is being socially responsible only when it pursues
its economic interests.
b. Dilution of purpose pursuing social goals dilutes business's primary purpose–economic
productivity.
c. Costs many social responsibility actions do not cover their costs and someone must pay
those costs.
d. Too much power businesses have a lot of power already and if they pursue social goals they
will have even more.
e. Lack of skills business leaders lack the necessary skills to address social issues.
f. Lack of accountability there are no direct lines of accountability for social actions.
Diff: 3
Page Ref: 95
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
29
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
117) In a short essay, describe how the relationship between social involvement and economic
performance has been evaluated. What conclusions can be drawn from their relationship?
Answer: To evaluate the relationship between social involvement and economic performance,
studies have been performed and socially responsible mutual stock funds have been gauged.
Although the majority of studies showed a positive relationship between social involvement and
economic performance, no definite association has been found: the studies did not use
standardized measures of social responsibility and economic performance. Standardized
measurements for these key management issues clearly need to be defined further before studies
can have more conclusive results. Tracking mutual stock funds that use social screening or apply
social criteria to investment decisions may be a better way to identify the relationship between
social involvement and economic performance. For example, since, 2002, Morningstar shows
high ratings for a larger percentage of the social funds than for large company mutual funds.
Overall, little evidence shows that social actions are detrimental to long-term economic
performance. Businesses should at least consider being socially involved to avoid creating
significant business risks.
Diff: 3
Page Ref: 94
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
118) In a short essay, explain the four approaches that organizations can take with respect to
environmental issues.
Answer: The first approach simply is doing what is required legally: the legal approach. Under
this approach, organizations exhibit little environmental sensitivity. They obey laws, rules, and
regulations willingly and without legal challenge, and they may even try to use the law to their
own advantage, but that's the extent of their being green. This approach is a good illustration of
social obligation: these organizations simply are following their legal obligations of pollution
prevention and environmental protection. As an organization becomes more aware of and
sensitive to environmental issues, it may adopt the market approach. In the market approach,
organizations respond to the environmental preferences of their customers. Whatever customers
demand in terms of environmentally-friendly products will be what the organization provides.
Under the next approach, the stakeholder approach, the organization chooses to respond to
multiple demands made by stakeholders. Under the stakeholder approach, the green organization
will work to meet the environmental demands of groups such as employees, suppliers, or the
community. Both the market approach and the stakeholder approach are good illustrations of
social responsiveness. Finally, if an organization pursues an activist approach, it looks for ways
to respect and preserve the earth and its natural resources. The activist approach exhibits the
highest degree of environmental sensitivity and is a good illustration of social responsibility.
Diff: 2
Page Ref: 97
Topic: Green Management
30
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
119) In a short essay, define values-based management and discuss the purposes of shared
values.
Answer: "Values-based management" is an approach to managing in which managers establish,
promote, and practice an organization's shared values. An organization's values reflect what it
stands for and what it believes in. The values that organizational members share serve at least
three main purposes. The first purpose of shared values is that they act as guideposts for
managerial decisions and actions. Another purpose of shared values is the impact they have on
shaping employee behavior and communicating what the organization expects of its members.
Shared corporate values also influence marketing efforts. Finally, shared values are a way to
build team spirit in organizations. When employees embrace the stated corporate values, they
develop a deeper personal commitment to their work and feel obligated to take responsibility for
their actions. Because the shared values influence the way work is done, employees become
more enthusiastic about working together as a team to support values that they believe in.
Diff: 1
Page Ref: 101
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
120) In a short essay, identify and describe the three levels and six stages of moral development.
Answer: The three levels of moral development are preconventional, conventional, and
principled. When an individual is at the preconventional level, choices are made based on
personal consequences involved. This level includes stage 1: following rules to avoid
punishment; and stage 2: following rules only when doing so is in the individual's immediate
interest. Ethical reasoning at the conventional level indicates that moral values reside in
maintaining expected standards and living up to the expectations of others. The third and fourth
stages are in the conventional level. In stage 3, an individual tries to live up to the expectations of
people close to him or her. In stage 4, an individual fulfills obligations to which he or she has
agreed and is limited to obeying the rules. Neither authority nor society regulates the rules that
individuals at the principled level follow. Instead, they may challenge those rules or practices
that violate their principles. The last two stages, 5 and 6, are in the principled level. At stage 5,
an individual values the rights of others and upholds absolute values and rights over the
majority's opinion. Finally, at stage 6, an individual follows his or her own ethical principles
regardless of the law.
Diff: 2
Page Ref: 100
Topic: Managers and Ethical Behavior
Skill: AACSB: Ethics
31
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
121) In a short essay, compare and contrast the classical and socioeconomic views of social
responsibility.
Answer: The differences between these two perspectives are easier to understand if we think in
terms of the people to whom organizations are responsible. Classicists would say that
stockholders or owners are the only legitimate concern. Others would respond that managers are
responsible to any group affected by the organization's decisions and actions. A stage 1 manager
is following the classical view of social responsibility and obeys all laws and regulations while
caring for stockholders' interests. At stage 2, managers expand their responsibilities to another
important stakeholder group—employees. Because they want to attract, keep, and motivate good
employees, stage 2 managers improve working conditions, expand employee rights, increase job
security, and focus on human resource concerns.
Diff: 2
Page Ref: 93
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
122) In a short essay, describe how values and the stage of moral development differ. Identify
and differentiate between the two personality variables that influence individuals' actions
according to their beliefs about what is right or wrong.
Answer: Whereas the stage of moral development is a specific measurement of the effect of
outside influences (e.g., the law and rules of organizations) on individuals' independence (i.e.,
decision-making processes), values are broad and cover many issues. Values are fundamental
beliefs about what is right and wrong that individuals begin developing at a young age.
Influencing individuals' actions are ego strength and locus of control. Ego strength is a measure
of individuals' beliefs, while locus of control measures the degree to which individuals believe
they have power over their fate. Individuals with high ego strength are expected to follow their
convictions and be more consistent in their moral judgments and actions than those with low ego
strength. Individuals with an internal locus of control, who believe that they control their own
destinies, are expected to take responsibility for their actions, use their beliefs to guide their
behavior, and be more consistent in their moral judgments and actions than those with an
external locus of control, who believe that luck or chance determines their fate.
Diff: 2
Page Ref: 100
Topic: What Is Social Responsibility?
Skill: AACSB: Ethics
32
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 11 Managing Teams
1) Formal groups are primarily social in nature.
Answer: FALSE
Diff: 1
Page Ref: 233
Topic: Groups and Group Development
2) Command groups, cross-functional teams, self-managed teams, and task forces are all
examples of informal groups.
Answer: FALSE
Diff: 2
Page Ref: 233
Topic: Turning Groups into Effective Teams
3) To be considered a group, there must be at least five people.
Answer: FALSE
Diff: 2
Page Ref: 233
Topic: Groups and Group Development
4) Task groups are permanent teams that take on special projects.
Answer: FALSE
Diff: 2
Page Ref: 233
Topic: Turning Groups into Effective Teams
5) Self-managed teams are composed of people from different work areas.
Answer: FALSE
Diff: 1
Page Ref: 233
Topic: Turning Groups into Effective Teams
6) The first stage of group development is storming.
Answer: FALSE
Diff: 2
Page Ref: 233
Topic: Groups and Group Development
7) In the storming stage of group development, intragroup conflict often occurs.
Answer: TRUE
Diff: 2
Page Ref: 234
Topic: Groups and Group Development
8) Under some conditions, high levels of conflict are conducive to high levels of group
performance.
Answer: TRUE
Diff: 3
Page Ref: 234
Topic: Groups and Group Development
9) External conditions tend to have little influence on group performance.
Answer: FALSE
Diff: 2
Page Ref: 235
Topic: Work Group Performance and Satisfaction
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
10) A group's performance potential depends to a large extent on the individual resources its
members bring to the group.
Answer: TRUE
Diff: 2
Page Ref: 235
Topic: Work Group Performance and Satisfaction
11) Work groups are unorganized crowds.
Answer: FALSE
Diff: 1
Page Ref: 236
Topic: Work Group Performance and Satisfaction
12) The impact that group pressures for conformity can have on an individual member's
judgment and attitudes was demonstrated in research by Solomon Asch.
Answer: TRUE
Diff: 2
Page Ref: 237
Topic: Work Group Performance and Satisfaction
13) An advantage of group decisions is that they increase acceptance of a solution.
Answer: TRUE
Diff: 1
Page Ref: 241
Topic: Work Group Performance and Satisfaction
14) The human relations view of conflict held that conflict must be avoided because it indicates a
malfunctioning within the group.
Answer: FALSE
Diff: 2
Page Ref: 241
Topic: Work Group Performance and Satisfaction
15) Resolving conflicts by placing another's needs and concerns above one's own is termed
forcing.
Answer: FALSE
Diff: 2
Page Ref: 243
Topic: Work Group Performance and Satisfaction
16) Compromise offers the ultimate win-win solution to conflict.
Answer: FALSE
Diff: 2
Page Ref: 243
Topic: Work Group Performance and Satisfaction
17) More than 70 percent of U.S. manufacturers use work teams.
Answer: TRUE
Diff: 2
Page Ref: 244
Topic: Turning Groups into Effective Teams
18) A work team discusses, decides, and delegates together.
Answer: TRUE
Diff: 1
Page Ref: 244
Topic: Turning Groups into Effective Teams
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
19) A problem-solving team brings together experts in various specialties to work together on
various organizational tasks.
Answer: FALSE
Diff: 2
Page Ref: 245
Topic: Turning Groups into Effective Teams
20) A formal group of employees who operate without a manager and are responsible for a
complete work process or segment is referred to as the self-managed team.
Answer: TRUE
Diff: 2
Page Ref: 245
Topic: Turning Groups into Effective Teams
21) Functional teams are teams that use technology to link physically dispersed members in
order to achieve a common goal.
Answer: FALSE
Diff: 2
Page Ref: 245
Topic: Turning Groups into Effective Teams
22) Virtual teams use computer technology to link members to achieve a common goal.
Answer: TRUE
Diff: 1
Page Ref: 245
Topic: Turning Groups into Effective Teams
Skill: AACSB: Technology
23) Interpersonal skills are not necessarily needed for a team to be effective.
Answer: FALSE
Diff: 2
Page Ref: 246
Topic: Turning Groups into Effective Teams
24) Mutual trust is important in developing effective teams.
Answer: TRUE
Diff: 1
Page Ref: 246
Topic: Turning Groups into Effective Teams
25) Negotiating skills are important in creating effective teams.
Answer: TRUE
Diff: 1
Page Ref: 246
Topic: Turning Groups into Effective Teams
26) A drawback of global teams is the increased groupthink.
Answer: FALSE
Diff: 1
Page Ref: 248
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
27) A benefit of global teams is that there is an increased attention on understanding others' ideas
and perspectives.
Answer: TRUE
Diff: 1
Page Ref: 248
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
28) In Australia, although status is important, it tends to be given based on titles and family
history rather than on accomplishments.
Answer: FALSE
Diff: 3
Page Ref: 248
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
29) In global teams, cohesiveness is often more difficult to achieve because of higher levels of
mistrust, miscommunication, and stress.
Answer: TRUE
Diff: 3
Page Ref: 249
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
30) When people need help getting a job done, they'll choose a friendly colleague over someone
who may be more capable.
Answer: TRUE
Diff: 2
Page Ref: 249
Topic: Current Challenges in Managing Teams
31) Which of the following statements about groups is true?
A) You need five or more people to be considered a work group.
B) The definition of groups suggests that a group is two or more people together for any reason.
C) Groups can be either formal or informal.
D) Formal groups are aimed at specific social agendas.
Answer: C
Diff: 2
Page Ref: 233
Topic: Groups and Group Development
32) ________ are work groups established by the organization that have designated work
assignments and specific tasks.
A) Tasks groups
B) Formal groups
C) Informal groups
D) Cross-functional groups
Answer: B
Diff: 2
Page Ref: 233
Topic: Groups and Group Development
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
33) Which of the following would be considered a formal group?
A) task force for employee birthday celebrations
B) reading group
C) bowling team
D) bringing people from various functions to solve a business dilemma
Answer: D
Diff: 2
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Topic: Groups and Group Development
34) Which of the following formal groups are essentially independent groups, which, in addition
to their regular job, take on tasks such as hiring, performance evaluations, and so forth?
A) business unit alliances
B) command groups
C) self-managed teams
D) cross-functional teams
Answer: C
Diff: 2
Page Ref: 233
Topic: Groups and Group Development
35) Which of the following is not a type of formal group?
A) command groups
B) task groups
C) cross-functional teams
D) business unit alliances
Answer: D
Diff: 3
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Topic: Groups and Group Development
36) Group development is ________.
A) necessary if individual performance is to be maximized
B) a dynamic process
C) maximized when group members' individual performance is maximized
D) the result of leader behavior
Answer: B
Diff: 2
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Topic: Groups and Group Development
37) The forming stage of group development consists of ________.
A) gaining power and status
B) people joining because of personal benefit(s) to the individual
C) duties being identified and performed
D) two phases
Answer: D
Diff: 2
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Topic: Groups and Group Development
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38) The ________ stage is complete when members begin to think of themselves as part of a
group.
A) forming
B) storming
C) norming
D) performing
Answer: A
Diff: 2
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Topic: Groups and Group Development
39) When the ________ stage is complete, there will be a relatively clear hierarchy of leadership
within the group and agreement on the group's direction.
A) forming
B) storming
C) norming
D) performing
Answer: B
Diff: 2
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Topic: Groups and Group Development
40) The task of defining the group's purpose, structure, and leadership is part of the ________
stage.
A) forming
B) storming
C) norming
D) performing
Answer: A
Diff: 2
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Topic: Groups and Group Development
41) In the ________ stage a strong sense of group identity and camaraderie occurs.
A) norming
B) forming
C) storming
D) performing
Answer: A
Diff: 2
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Topic: Groups and Group Development
42) Norming occurs when ________.
A) individuals demonstrate their own cohesiveness
B) storming ends
C) leadership is team focused
D) close relationships develop and the group demonstrates cohesiveness
Answer: D
Diff: 2
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Topic: Groups and Group Development
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
43) The ________ stage is complete when the group structure solidifies and the group has
assimilated a common set of expectations of what defines correct member behavior.
A) storming
B) forming
C) performing
D) norming
Answer: D
Diff: 2
Page Ref: 234
Topic: Groups and Group Development
44) In the ________ stage, high levels of task performance are not the group's top priority any
longer.
A) storming
B) adjourning
C) forming
D) norming
Answer: B
Diff: 2
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Topic: Groups and Group Development
45) The success or failure of a group is affected by group attributes such as abilities of the
group's members, the size of the group, ________.
A) the level of conflict, and the internal pressures on the members to conform to the group's
norms
B) the ability of the group's members to conform, and the clarity of the goal
C) the value of the goal to the group, and the level of conflict within the group
D) the level of conflict within the group, and the leader
Answer: A
Diff: 3
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Topic: Groups and Group Development
46) Which of the following is an example of group member resources?
A) expected behaviors imposed from the central office
B) group member personalities
C) the group leadership
D) the group size
Answer: B
Diff: 1
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Topic: Work Group Performance and Satisfaction
47) Which of the following personality traits tends to have a positive impact on group
productivity and morale?
A) self-reliance
B) authoritarianism
C) dominance
D) unconventionality
Answer: A
Diff: 2
Page Ref: 236
Topic: Work Group Performance and Satisfaction
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48) All of the following have a negative effect on productivity and morale of groups except
________.
A) authoritarianism
B) independence
C) dominance
D) unconventionality
Answer: B
Diff: 1
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Topic: Work Group Performance and Satisfaction
49) Which of the following personality traits tends to have a negative impact on group
productivity and morale?
A) sociability
B) self-reliance
C) independence
D) dominance
Answer: D
Diff: 2
Page Ref: 236
Topic: Work Group Performance and Satisfaction
50) Behavior patterns expected of someone occupying a given position in a social unit is called
________.
A) a role
B) social status
C) conformity
D) group cohesiveness
Answer: A
Diff: 2
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Topic: Work Group Performance and Satisfaction
51) An individual confronted by different role expectations has just encountered role ________.
A) ambiguity
B) conflict
C) identification
D) purpose
Answer: B
Diff: 2
Page Ref: 237
Topic: Work Group Performance and Satisfaction
52) The acceptable standards or expectations that are shared by the group's members are referred
to as ________.
A) roles
B) norms
C) values
D) morals
Answer: B
Diff: 2
Page Ref: 237
Topic: Work Group Performance and Satisfaction
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
53) A new commercial bank employee who notices stares from other officers because he does not
wear conservative work attire is experiencing what aspect of groups?
A) role conflict
B) norms
C) status separation
D) cohesiveness conflict
Answer: B
Diff: 3
Page Ref: 237
Topic: Work Group Performance and Satisfaction
54) Work group norms are ________.
A) very powerful in influencing an individual's performance
B) sometimes productive in influencing an individual's performance
C) always powerful in influencing an individual's performance
D) never powerful in influencing an individual's performance
Answer: A
Diff: 3
Page Ref: 237
Topic: Work Group Performance and Satisfaction
55) The findings of Asch's experiment utilizing lines of different lengths relate to ________.
A) job status
B) workplace conformity
C) work group cohesiveness
D) role conflict
Answer: B
Diff: 2
Page Ref: 237
Topic: Work Group Performance and Satisfaction
56) Prestige grading, position, or rank within a group is ________.
A) management
B) status
C) leadership
D) membership
Answer: B
Diff: 2
Page Ref: 238
Topic: Work Group Performance and Satisfaction
57) Which of the following is an accurate statement regarding status systems?
A) Education is an informal status characteristic.
B) Status is a weak motivator compared to other group issues.
C) People generally have difficulty classifying people into status categories.
D) Status is a contemporary research topic.
Answer: A
Diff: 2
Page Ref: 238
Topic: Work Group Performance and Satisfaction
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58) Age, skill, and experience are examples of which of the following?
A) formal status categories
B) informal status categories
C) individual status categories
D) in-group status categories
Answer: B
Diff: 2
Page Ref: 238
Topic: Work Group Performance and Satisfaction
59) ________ occurs when a supervisor is earning less than his or her subordinates.
A) Conflict
B) Role conflict
C) Group incohesiveness
D) Status incongruence
Answer: D
Diff: 2
Page Ref: 238
Topic: Work Group Performance and Satisfaction
60) According to the group behavior model, group size is an example of what factor of group
determination of effectiveness?
A) external conditions
B) group structure
C) group processes
D) group tasks
Answer: B
Diff: 2
Page Ref: 239
Topic: Work Group Performance and Satisfaction
61) In comparison to large groups, small groups ________.
A) have shorter group tenure
B) tend to be more homogeneous
C) are faster at completing tasks
D) are better at obtaining diverse input
Answer: C
Diff: 2
Page Ref: 239
Topic: Work Group Performance and Satisfaction
62) Large groups consistently get better results than smaller ones, when the group is involved in
________.
A) a fast and appropriate decision
B) free rider tendency
C) problem solving
D) goal clarity
Answer: C
Diff: 2
Page Ref: 239
Topic: Work Group Performance and Satisfaction
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
63) The "free rider" tendency explains why ________.
A) the productivity of groups is exponential
B) there is always one person who does not work as hard as other group members
C) individual contribution often decreases because the person believes their contribution can't be
measured.
D) group productivity grows in a linear fashion
Answer: C
Diff: 3
Page Ref: 239
Topic: Work Group Performance and Satisfaction
64) Which of the following is a potential means of limiting the free rider effect?
A) be able to identify individual responsibility
B) reward groups collectively, not individually
C) never allow an outsider into a group once it is formed
D) provide merit pay that is proportional to group effectiveness
Answer: A
Diff: 2
Page Ref: 239
Topic: Work Group Performance and Satisfaction
65) The degree to which members are attracted to a group and share the group's goals is referred
to as group ________.
A) diversity
B) cohesiveness
C) expansion
D) norms
Answer: B
Diff: 2
Page Ref: 239
Topic: Work Group Performance and Satisfaction
66) Research has shown that highly cohesive groups are ________ than less-cohesive groups.
A) more efficient
B) less effective
C) less efficient
D) more effective
Answer: D
Diff: 1
Page Ref: 239
Topic: Work Group Performance and Satisfaction
67) When cohesiveness is low and goals are not supported, cohesiveness has ________ on
productivity.
A) no significant effect
B) a marginal effect
C) a consistent effect
D) a significant effect
Answer: A
Diff: 2
Page Ref: 239
Topic: Work Group Performance and Satisfaction
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
68) Which of the following is not an advantage of group decision making over individual
decision making?
A) Groups provide more complete information.
B) Groups generate more diverse alternatives.
C) There is less acceptance of a solution.
D) There is increased legitimacy of the decision.
Answer: C
Diff: 1
Page Ref: 241
Topic: Work Group Performance and Satisfaction
69) Which of the following is an advantage of group decisions?
A) generate more complete information and knowledge
B) time consuming
C) minority domination
D) ambiguous responsibility
Answer: A
Diff: 1
Page Ref: 241
Topic: Work Group Performance and Satisfaction
70) Which of the following is true concerning groups?
A) Groups take more time to make a decision.
B) Groups tend to have equal participation rates.
C) There is little pressure to conform.
D) There is definite ownership of responsibility.
Answer: A
Diff: 1
Page Ref: 241
Topic: Work Group Performance and Satisfaction
71) Which of the following is true concerning the effectiveness of individual decision making
over group decision making?
A) Individuals tend to be more accurate.
B) Individuals are always outperformed by groups.
C) Individuals are more creative than groups.
D) Individuals are less accepting of the final decision.
Answer: D
Diff: 2
Page Ref: 241
Topic: Work Group Performance and Satisfaction
72) The ________ view of conflict argues that conflict must be avoided, that it indicates a
problem within the group.
A) human relations
B) traditional
C) interactionist
D) dysfunctional
Answer: B
Diff: 2
Page Ref: 241
Topic: Work Group Performance and Satisfaction
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73) Which view of conflict sees it as absolutely necessary for effective organizational
performance?
A) contemporary view
B) conservative view
C) human relations view
D) interactionist view
Answer: D
Diff: 2
Page Ref: 242
Topic: Work Group Performance and Satisfaction
74) The type of conflicts that the interactionist says support the goals of the organization are
known as ________.
A) goal-oriented conflicts
B) strategic conflicts
C) natural conflicts
D) functional conflicts
Answer: D
Diff: 2
Page Ref: 242
Topic: Work Group Performance and Satisfaction
75) ________ prevent a group from achieving its goals.
A) Informal groups
B) Command groups
C) Cross-functional teams
D) Dysfunctional conflicts
Answer: D
Diff: 2
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Topic: Work Group Performance and Satisfaction
76) Which of the following is not identified as a type of conflict that differentiates functional
from dysfunctional conflict?
A) task conflict
B) relationship conflict
C) ethical conflict
D) process conflict
Answer: C
Diff: 2
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Topic: Work Group Performance and Satisfaction
77) When conflict levels are too high, managers can select from ________ conflict-management
options.
A) three
B) four
C) five
D) six
Answer: C
Diff: 2
Page Ref: 243
Topic: Work Group Performance and Satisfaction
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
78) Which of the following is not mentioned as a conflict-management option?
A) avoidance
B) contradiction
C) accommodation
D) compromise
Answer: B
Diff: 2
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Topic: Work Group Performance and Satisfaction
79) Withdrawing from or suppression of conflict is termed ________.
A) collaborating
B) forcing
C) accommodation
D) avoidance
Answer: D
Diff: 2
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Topic: Work Group Performance and Satisfaction
80) Research evidence suggests that teams typically outperform individuals when ________.
A) one or more members are allowed to dominate the other team members
B) responsibility is ambiguous
C) the tasks being done require multiple skills, judgment, and experience
D) the tasks need to be done in a timely manner
Answer: C
Diff: 2
Page Ref: 244
Topic: Turning Groups into Effective Teams
81) Managers have found that teams are ________ to changing events than are traditional
departments or other permanent work groups.
A) less flexible and responsive
B) less flexible and more responsive
C) more flexible and less responsive
D) more flexible and responsive
Answer: D
Diff: 2
Page Ref: 244
Topic: Turning Groups into Effective Teams
82) ________ interact primarily to share information and to make decisions to help each member
do his or her job more efficiently and effectively.
A) Formal teams
B) Informal teams
C) Work groups
D) Work teams
Answer: C
Diff: 1
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Topic: Turning Groups into Effective Teams
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83) ________ are teams from the same department or functionl area who are involved in efforts
to improve work activities or to solve specific problems.
A) self-managed work teams
B) cross-functional teams
C) problem-solving teams
D) functional teams
Answer: C
Diff: 2
Page Ref: 245
Topic: Turning Groups into Effective Teams
84) A work group ________.
A) encourages open-ended discussion and active problem-solving meetings
B) has a specific team purpose that the group itself delivers
C) measures performance directly by assessing collective work products
D) runs efficient meetings
Answer: D
Diff: 1
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Topic: Turning Groups into Effective Teams
85) A ________ has a strong, clearly focused leader.
A) social team
B) sports team
C) work group
D) work team
Answer: C
Diff: 1
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Topic: Turning Groups into Effective Teams
86) A ________ is characterized by individual and mutual accountability.
A) social team
B) sports team
C) work group
D) work team
Answer: D
Diff: 1
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Topic: Turning Groups into Effective Teams
87) A work team ________.
A) creates individual work products
B) has shared leadership roles
C) is characterized by individual accountability
D) measures its effectiveness indirectly by its influence on others
Answer: B
Diff: 1
Page Ref: 244
Topic: Turning Groups into Effective Teams
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88) What type of team is rarely given the authority to unilaterally implement any of their
suggested actions?
A) cross-functional
B) problem-solving
C) self-managed
D) virtual
Answer: B
Diff: 2
Page Ref: 245
Topic: Turning Groups into Effective Teams
89) Bringing together organizational members from marketing, accounting, human resources,
and finance to work on a task would be an example of a ________ team.
A) cross-functional
B) temporary
C) specific
D) functional
Answer: A
Diff: 2
Page Ref: 245
Topic: Turning Groups into Effective Teams
90) ________ teams tend to be more task-oriented especially if the team members have never
personally met.
A) Cross-functional
B) Problem-solving
C) Self-managed
D) Virtual
Answer: D
Diff: 1
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Topic: Turning Groups into Effective Teams
91) High-performance teams tend to have ________ goals.
A) clear
B) difficult
C) public
D) multiple
Answer: A
Diff: 1
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Topic: Turning Groups into Effective Teams
92) To be effective, teams should ________.
A) have low mutual trust among members
B) have formal documentation
C) have relevant skills
D) hold firm in their positions
Answer: C
Diff: 3
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Topic: Turning Groups into Effective Teams
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93) ________ is characterized by dedication to the team's goals and a willingness to expend
extraordinary amounts of energy to achieve them.
A) Mutual trust
B) Negotiating skills
C) Relevant skills
D) Unified commitment
Answer: D
Diff: 1
Page Ref: 246
Topic: Turning Groups into Effective Teams
94) On a baseball team, a shortstop who "raises his fist" as a signal indicating he will cover
second base in the event of an attempted steal is exhibiting what characteristic of effective
teams?
A) clear goals
B) mutual trust
C) unified commitment
D) good communication
Answer: D
Diff: 2
Page Ref: 246
Topic: Turning Groups into Effective Teams
Skill: AACSB: Communication
95) Which role of leader is associated with effective teams?
A) salesperson
B) directive
C) controlling
D) facilitator
Answer: D
Diff: 2
Page Ref: 247
Topic: Turning Groups into Effective Teams
96) Providing a pay system that appropriately recognizes team activities is an example of what
characteristic of effective teams?
A) internal and external support
B) appropriate leadership
C) negotiating skills
D) good communication
Answer: A
Diff: 2
Page Ref: 247
Topic: Turning Groups into Effective Teams
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
97) What is a drawback of global teams?
A) Groupthink is a greater problem because members are more likely to feel pressured to
conform to the ideas, conclusions, and decisions of the group.
B) There is a decreased attention on understanding others' ideas and perspectives.
C) There is a greater potential for stereotyping.
D) There is less diversity of ideas.
Answer: C
Diff: 1
Page Ref: 248
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
98) What is a benefit of global teams?
A) There are fewer communication problems.
B) There is a greater diversity of ideas.
C) There is a greater trust among team members.
D) There is less stress and tension.
Answer: B
Diff: 1
Page Ref: 248
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
99) Understanding the relationship between group performance and group member resources is
made more challenging ________.
A) as the resources decline
B) in organizations that have customers in other countries
C) as the group size increases
D) in global organizations in which cross-cultural groups are prevalent
Answer: D
Diff: 3
Page Ref: 249
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
100) Research on conformity suggests that ________.
A) conformity does not apply to global teams
B) conformity is culture-bound
C) conformity tends to be higher in individualistic cultures than in collectivist cultures
D) groupthink tends to be more of a problem in global teams
Answer: B
Diff: 2
Page Ref: 248
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
101) Status for ________ tends to come from family position and formal roles held in
organizations.
A) Americans
B) Australians
C) Latin Americans
D) the French
Answer: C
Diff: 2
Page Ref: 248
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
102) In global teams, social loafing ________.
A) has an Eastern bias
B) is consistent with collectivist cultures
C) is consistent with cultures that are dominated by self-interest
D) is not an issue
Answer: C
Diff: 2
Page Ref: 248
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
103) What is not identified as part of the manager's role in managing global teams?
A) Managers should clarify team members' roles.
B) Managers should focus on developing communication skills.
C) Managers must consider cultural differences when deciding what type of global team to use.
D) Managers must be sensitive to the unique differences of each member of the global team.
Answer: A
Diff: 2
Page Ref: 249
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
104) ________ is the patterns of informal connections among individuals within groups.
A) A global team
B) A work group
C) A work team
D) The social network structure
Answer: D
Diff: 1
Page Ref: 249
Topic: Current Challenges in Managing Teams
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
A New Group (Scenario)
David had been away from his old company, Control Tech, for a while. He remembered that
when he worked there 10 years ago, the company was very traditional and conservative. The
lines of authority and responsibility were established and clear. Now, it felt ironic that he was
managing the consulting team that was going to help bring a group orientation into being. In
addition to the traditional hierarchy, with a manager and subordinates, he saw a need to introduce
teams comprised of individuals from various work areas to help solve operational problems. He
also felt that, for certain projects, there could be groups that function essentially independently,
even taking on traditional management responsibilities such as hiring, planning, and scheduling.
Plus, he also saw real potential for special, temporary projects to be handled by groups that
would disband once the task was completed.
105) David knows that groups consist of ________ interacting and interdependent individuals
who come together to achieve particular objectives.
A) two or more
B) at least three
C) five or more
D) 10 or more
Answer: A
Diff: 1
Page Ref: 233
Topic: Groups and Group Development
106) David recognized that ________ are characterized with the traditional hierarchy of a
manager and subordinates.
A) self-managed teams
B) task groups
C) command groups
D) cross-functional teams
Answer: C
Diff: 2
Page Ref: 233
Topic: Turning Groups into Effective Teams
107) The temporary groups David talked about, created to achieve a special task and then
disband, are known as ________.
A) self-managed teams
B) task groups
C) command groups
D) cross-functional teams
Answer: B
Diff: 2
Page Ref: 233
Topic: Tools for Controlling Organizational Performance
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
108) The groups that comprise individuals from various areas working on operational problems
are best described as ________.
A) self-managed teams
B) task groups
C) command groups
D) cross-functional teams
Answer: D
Diff: 2
Page Ref: 233
Topic: Turning Groups into Effective Teams
109) David also saw a need for ________, which are essentially independent groups taking on
traditional management responsibilities.
A) self-managed teams
B) task groups
C) command groups
D) cross-functional teams
Answer: A
Diff: 2
Page Ref: 233
Topic: Turning Groups into Effective Teams
The Retreat (Scenario)
The first-line managers were sent on a retreat to Silver Falls for their inaugural strategic planning
meeting. Few people knew each other, but their task was clear: design a new performance
appraisal system for subordinates that will be effective and usable. Their years of complaining
about the old system had landed them with this new responsibility. They had 4 days to become
brilliant, and everyone was a little on edge. The first day, little was accomplished except for the
jockeying to see who would be the official leader. Finally, Jim seemed to wrangle control and
helped provide the first real direction for the group. By the second day, the group seemed to
begin working well. They spent the morning deciding how they would make decisions within the
group and how to manage the idea-generation process. On the third and fourth days, the new
managers moved amazingly quickly, with ideas flowing freely. By the end of the fourth day, they
had a workable system developed, and they felt satisfied. That night they all signed the new
document to be presented to the regional manager the next day. They all felt a twinge of regret at
having to break up the group and return to normal work life.
110) The stage of group development characterized by their being at the retreat for a business
reason is known as ________.
A) performing
B) storming
C) forming
D) adjourning
Answer: C
Diff: 1
Page Ref: 233
Topic: Groups and Group Development
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
111) The group was in the ________ stage when they were competing to see who would lead the
group.
A) performing
B) storming
C) forming
D) adjourning
Answer: B
Diff: 2
Page Ref: 234
Topic: Groups and Group Development
112) When the management group was deciding on their decision rules, they were in the
________ stage of group development.
A) norming
B) storming
C) forming
D) adjourning
Answer: A
Diff: 2
Page Ref: 234
Topic: Groups and Group Development
113) In the third and fourth days of the retreat, the managers were in the ________ stage of
group development.
A) performing
B) storming
C) forming
D) adjourning
Answer: A
Diff: 2
Page Ref: 234
Topic: Groups and Group Development
114) When the management team left Silver Falls to return to their workplace, they had just
completed the ________ stage of group development.
A) performing
B) storming
C) forming
D) adjourning
Answer: D
Diff: 1
Page Ref: 234
Topic: Groups and Group Development
22
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
King Midas (Scenario)
King Midas Manufacturing Co. has been utilizing groups to improve their manufacturing
process. The groups have been starting and stopping for the last 3 years. Some of the most
successful groups were together for only a few months and others have been together for over a
year and one-half with little to no success. Management has requested your consulting expertise
in determining why there were varied successes and failures. Your analysis of the system
indicates that part of the explanation for the diversity of results could simply be the development
stage of the group..
115) Group 830 has been meeting for 11 months and seems to be having some difficulty in
getting all 10 of the members together at one time. Several of the middle-level managers have
been promoted and transferred to other functional areas or to other facilities of the company. To
date, the group has had 18 members at one time or another making up the 10 allocated by
management. The group cannot develop a focus on its objectives. Group 830 is at the ________
stage.
A) forming
B) storming
C) norming
D) performing
Answer: A
Diff: 2
Page Ref: 233
Topic: Groups and Group Development
116) Group 348 has been meeting for one month and is seen as having some difficulty in
establishing its leader. At least three individuals are qualified to keep the group's focus on its
objectives and in an orderly manner, but the group hasn't concluded as to which person will lead.
Group 348 is at the ________ stage.
A) forming
B) performing
C) storming
D) norming
Answer: C
Diff: 2
Page Ref: 234
Topic: Groups and Group Development
117) Group 791 has been meeting for 4 months and presents itself as having close relationships
between its members, considerable cohesiveness, and a focus on its objectives. Group 791 is at
the ________ stage.
A) storming
B) norming
C) adjourning
D) forming
Answer: B
Diff: 2
Page Ref: 234
Topic: Groups and Group Development
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
118) Group 458 has been meeting for 2 months and seems to be progressing extremely well.
Your observation indicates that the group meets and spends about 5 minutes chatting, moves to
the meeting area, and begins by reviewing the decisions of the last meeting and then goes about
their discussion, focuses on the group's objectives, makes new assignments, and returns to their
functional job duties. Group 458 is currently at the ________ stage.
A) norming
B) performing
C) storming
D) adjourning
Answer: B
Diff: 2
Page Ref: 234
Topic: Groups and Group Development
119) Group 174 has been meeting for less than 2 years and seems to be at the stage where there
are only four more prints to be distributed to engineering and production for final consideration
before prototype production begins on the latest model of product S. Only four of the original
nine members remain active in the group. Group 174 is at the ________ stage.
A) forming
B) performing
C) norming
D) adjourning
Answer: D
Diff: 2
Page Ref: 234
Topic: Groups and Group Development
The New Professor (Scenario)
Dan Powell has recently received his Ph.D. and has begun teaching at a large university. Prior to
his first day of class, Dan's department head had lunch with him and explained what was
expected of a new professor in terms of maintaining discipline in his classroom, providing
students with a challenging course, and keeping grades down. Later that week Dan met with
other professors in a faculty meeting. During that meeting, a number of issues were discussed
and, although Dan did not agree with all of them, he did not feel comfortable discussing his
position because he was a new assistant professor and the others were more senior. However, in
watching the reactions of other professors, he got the feeling that some of them disagreed with a
few issues, too, but did not want to say anything because doing so might be disruptive.
120) When Dan gave his first exam of the semester, he remembered his chair's advice to
maintain the department's tough standards. However, he knew that if he did so his students would
be very disappointed and may lose their motivation and some may have their GPAs negatively
impacted. In this situation Dan is experiencing ________.
A) role conflict
B) groupthink
C) status differentials
D) social loafing
Answer: A
Diff: 2
Page Ref: 237
Topic: Work Group Performance and Satisfaction
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121) When Dan's department head was discussing the department's acceptable standards and
expectations that all of the professors held regarding grading, he was sharing the group's
________ with Dan.
A) roles
B) norms
C) status
D) cohesiveness
Answer: B
Diff: 2
Page Ref: 237
Topic: Work Group Performance and Satisfaction
122) The reluctance of Dan's senior professors to voice their opposition to several issues in order
to maintain group harmony is an example of ________.
A) social loafing
B) role conflict
C) role ambiguity
D) groupthink
Answer: D
Diff: 1
Page Ref: 238
Topic: Work Group Performance and Satisfaction
123) In Dan's first faculty meeting, his reluctance to say anything because he was a new
professor reveals that he was conscious of his ________.
A) expectations
B) norms
C) status
D) group
Answer: C
Diff: 2
Page Ref: 238
Topic: Work Group Performance and Satisfaction
124) Midway through his first semester, one of the teams in Dan's class came to him with a
problem. Of the four team members, all of them were doing their jobs except Stacey. The group
had agreed to have Stacey as a member since they all knew she had a high GPA and worked hard
on all of her individual assignments. However, as a team member the group agreed that they
were not getting Stacey's best efforts. They felt like she was not working as hard as a group
member as she was as an individual. Dan quickly diagnosed the problem as one of ________.
A) social loafing
B) groupthink
C) role conflict
D) status differentials
Answer: A
Diff: 2
Page Ref: 239
Topic: Work Group Performance and Satisfaction
25
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125) After Dan's students left his office he was thinking about whether it was worth the extra
effort to make his students complete group assignments. He knew that working together could be
challenging but he wanted his students to recognize the benefits of group decision making
including ________.
A) minority domination
B) pressures to conform
C) ambiguous responsibility
D) generating more diverse alternatives
Answer: D
Diff: 1
Page Ref: 241
Topic: Work Group Performance and Satisfaction
Conflicting Opinions (Scenario)
The two vice presidents were in heated debate. Celine feels that the traditional form of marketing
their company is using isn't working any more and that loyal customers would stay regardless.
She feels the company needs to "spice it up a bit" and go after new market share. Merle disagrees
vehemently. He feels the company is doing fine; they have a good base of loyal customers, and
new aggressive approaches may lose them without any guarantee of gaining new customers.
Regardless of who is right, their battle was causing a stir in the organization. Some felt that
conflict like this hurt the company and made it appear weak to employees and stockholders.
Others felt that this conflict over marketing strategies was bound to occur eventually and may
even help the company. Still others even encouraged such conflict. They think it keeps the
company from getting stuck.
126) Those in the company who view the conflict over the marketing strategy as bad and harmful
have a ________ view of conflict.
A) human relations
B) conservative
C) traditional
D) interactionist
Answer: C
Diff: 2
Page Ref: 241
Topic: Work Group Performance and Satisfaction
127) Those in the company who view the conflict over the marketing strategy as natural and
inevitable have a ________ view of conflict.
A) human relations
B) conservative
C) strategic
D) interactionist
Answer: A
Diff: 2
Page Ref: 241-242
Topic: Work Group Performance and Satisfaction
26
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
128) Those in the company who encourage the conflict over the marketing strategy have a(n)
________ view of conflict.
A) human relations
B) conservative
C) strategic
D) interactionist
Answer: D
Diff: 3
Page Ref: 242
Topic: Work Group Performance and Satisfaction
129) Conflict that supports the organization's goals is considered ________ conflict.
A) accepted
B) functional
C) inevitable
D) standard
Answer: B
Diff: 2
Page Ref: 242
Topic: Work Group Performance and Satisfaction
130) Conflict that prevents the organization from achieving its goals is considered ________.
A) destructive
B) negative
C) dysfunctional
D) nonstrategic
Answer: C
Diff: 2
Page Ref: 242
Topic: Work Group Performance and Satisfaction
27
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Strato Engineering (Scenario)
Recently Strato Engineering, a technology product company, began the use of a team (1) to
develop the next generation of the company's model CVF-D. The team is composed of the
product development manager, chief engineer, director of procurement, human resource
directortechnology, marketing research director, cost analysis director, operations
directorproduction, and the four highest-dollar project vendors. The preliminary projection for
the lifetime of the team to prototype-production is expected to be 2 years due to the level of
technology involved in the product. Another team (2) has also been established recently to solve
a new problem with an adhesive used to attach a thin-foil material to a finished metal surface.
There are three members in this team: installer, engineer, and sales representative for the
adhesive manufacturer, and no one particular leader. It is anticipated that it will require about 2
days to solve the problem. Another team (3) has been working together for 4 years implementing
modifications to the company's current model CVF-C. It is composed of members in the areas
of: procurement, engineering, production, major vendors, and Strato Engineering customers'
procurement agents. None of the members of this team are at the same location. They utilize a
variety of graphic-electronic technologies to view the product onscreen in three-dimension at
each location simultaneously. At the Denver facility, a team (4) has been formed to stamp a new
part. It requires four members, and they rotate jobs every 2 hours. Before beginning the workday,
they meet for about 10 minutes and discuss the work that needs to be completed that day. The
team makes most of the day-to-day decisions about their work responsibilities.
131) The team (4) at the Denver facility is a ________ team.
A) problem-solving
B) self-managed
C) virtual
D) cross-functional
Answer: A
Diff: 2
Page Ref: 245
Topic: Work Group Performance and Satisfaction
132) The team (2) that is working on the adhesive problem is a ________ team.
A) problem-solving
B) self-managed
C) virtual
D) cross-functional
Answer: B
Diff: 2
Page Ref: 245
Topic: Work Group Performance and Satisfaction
133) The team (1) that is working on the model CVF-D is a ________ team.
A) problem-solving
B) self-managed
C) virtual
D) cross-functional
Answer: D
Diff: 2
Page Ref: 245
Topic: Work Group Performance and Satisfaction
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134) The team (3) that is working on model CVF-C modifications is a ________ team.
A) problem-solving
B) self-managed
C) virtual
D) cross-functional
Answer: C
Diff: 2
Page Ref: 245
Topic: Work Group Performance and Satisfaction
135) In a short essay, define formal groups and list and describe four examples of formal groups.
Answer: Formal groups are work groups established by the organization that have designated
work assignments and specific tasks. In formal groups, appropriate behaviors are established by
and directed toward organizational goals.
a. Command groupsthese are the basic, traditional work groups determined by formal
authority relationships and depicted on the organizational chart. They typically include a
manager and those subordinates who report directly to him or her.
b. Cross-functional teamsthese bring together the knowledge and skills of individuals from
various work areas in order to come up with solutions to operational problems. Cross-functional
teams also include groups whose members have been trained to do each other's jobs.
c. Self-managed teamsthese are essentially independent groups that, in addition to doing their
operating jobs, take on traditional management responsibilities such as hiring, planning and
scheduling, and performance evaluations.
d. Task forcesthese are temporary groups created to accomplish a specific task. Once the task
is complete, the group is disbanded.
Diff: 2
Page Ref: 233
Topic: Groups and Group Development
29
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136) In a short essay, list and discuss the five stages of group development.
Answer: Research shows that groups pass through a standard sequence of five stages. These five
stages are forming, storming, norming, performing, and adjourning.
a. The first stage, forming, has two aspects. First people join the group either because of a work
assignment, in the case of a formal group, or for some other benefit desired (such as status, selfesteem, affiliation, power, or security), in the case of an informal group. Once the group's
membership is in place, the second part of the forming stage begins: the task of defining the
group's purpose, structure, and leadership. This phase is characterized by a great deal of
uncertainty. Members are "testing the waters" to determine what types of behavior are
acceptable. This stage is complete when members begin to think of themselves as part of a
group.
b. The storming stage is one of intragroup conflict. Members accept the existence of the group
but resist the control that the group imposes on individuality. Furthermore, there is conflict over
who will control the group. When this stage is complete, there will be a relatively clear hierarchy
of leadership within the group and agreement on the group's direction.
c. The third stage is one in which close relationships develop and the group demonstrates
cohesiveness. There's now a strong sense of group identity and camaraderie. This norming stage
is complete when the group structure solidifies and the group has assimilated a common set of
expectations of what defines correct member behavior.
d. The fourth stage is performing. The group structure at this point is fully functional and
accepted. Group energy has moved from getting to know and understand each other to
performing the task at hand. Performing is the last stage in the development of permanent work
groups. Temporary groupssuch as committees, task forces, and similar groupsthat have a
limited task to perform have a fifth stage, adjourning.
e. In the adjourning stage, the group prepares to disband. High levels of task performance are
no longer the group's top priority. Instead, attention is directed at wrapping up activities.
Responses of group members vary at this stage. Some are upbeat, basking in the group's
accomplishments. Others may be saddened by the loss of camaraderie and friendships gained
during the work group's life.
Diff: 2
Page Ref: 233-234
Topic: Groups and Group Development
30
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
137) In a short essay, discuss the major components that determine group performance and
satisfaction.
Answer: a. External conditions imposed on the groupto understand behavior of work
groups, you need to recognize they're part of a larger organization. As a part of a larger
organizational system, a work group is influenced by external conditions imposed on it from
outside. These external conditions include the organization's strategy, authority relationships,
formal rules and regulations, availability of organizational resources, employee selection criteria,
the organization's performance management system and culture, and general physical layout of
the group's work space.
b. Group member resourcesa group's performance potential depends to a large extent on the
individual resources its members bring to the group. These include members' knowledge,
abilities, skills, and personality characteristics.
c. Group structurework groups aren't unorganized crowds. They have an internal structure
that shapes members' behavior and makes it possible to explain, predict, and influence a large
portion of individual behavior within the group as well as the performance of the group itself.
This structure defines member roles, norms, conformity, status systems, group size, group
cohesiveness, and formal leadership positions.
d. Group processesthe next component in our group behavior model concerns the processes
that go on within a work group–the communication patterns used by members to exchange
information, group decision processes, power dynamics, conflict interactions, and the like. These
processes are important to understanding work group behavior because in groups, one and one
don't necessarily add up to two. Every group begins with a potential defined by its constraints,
resources, and structure. Then you add in the positive and negative process factors created within
the group itself.
e. Group tasksthe impact that group processes have on group performance and member
satisfaction is modified by the task the group is doing. More specifically, the complexity and
interdependence of tasks influence the group's effectiveness. Tasks can be generalized as either
simple or complex. Simple tasks are routine and standardized. Complex tasks are ones that tend
to be novel or nonroutine.
Diff: 2
Page Ref: 235
Topic: Work Group Performance and Satisfaction
31
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138) In a short essay, identify six of the aspects of group structure.
Answer: a. Rolesa role refers to behavior patterns expected of someone occupying a given
position in a social unit. In a group, individuals are expected to do certain things because of their
position (role) in the group. These roles tend to be oriented toward either task accomplishment or
toward maintaining group member satisfaction.
b. Normsall groups have normsstandards or expectations that are accepted and shared by a
group's members. Norms dictate factors such as work output levels, absenteeism, promptness,
and the amount of socializing allowed on the job. Although a group has its own unique set of
norms, common organizational norms focus on effort and performance, dress, and loyalty.
c. Conformitybecause individuals want to be accepted by groups to which they belong,
they're susceptible to conformity pressures. As group members, we often want to be considered
one of the group and to avoid being visibly different. We find it more pleasant to be in agreement
than to be disruptive, even if disruption may be necessary to improve the effectiveness of the
group's decisions. So we conform. But conformity can go too far, especially when an individual's
opinion of objective data differs significantly from that of others in the group. When this
happens, the group often exerts extensive pressure on the individual to align his or her opinion to
conform to others' opinions, a phenomenon known as groupthink.
d. Status systemsstatus is a prestige grading, position, or rank within a group. As far back as
researchers have been able to trace groups, they have found status hierarchies. Status systems are
an important factor in understanding behavior. It's a significant motivator and has behavioral
consequences when individuals see a disparity between what they perceive their status to be and
what others perceive it to be.
e. Group sizelarge groupsthose with a dozen or more membersare good for getting
diverse input. Thus, if the goal of the group is to find facts, a larger group should be more
effective. On the other hand, smaller groups are better at doing something productive with those
facts. Groups of approximately seven members tend to be more effective for taking action. One
important finding related to group size is social loafing, which is the tendency for an individual
to expend less effort when working collectively than when working individually.
f. Group cohesivenessgroup cohesiveness is the degree to which members are attracted to a
group and share the group's goals. Cohesiveness is important because it has been found to be
related to a group's productivity.
Diff: 2
Page Ref: 236-239
Topic: Work Group Performance and Satisfaction
139) In a short essay, compare groups and teams.
Answer: A group is defined as two or more interacting and interdependent individuals who come
together to achieve particular goals. Work teams are different from work groups and have their
own unique traits. Work groups primarily interact to share information and to make decisions to
help each member do his/her job more efficiently and effectively. These groups have no need or
opportunity to engage in collective work that requires joint effort. On the other hand, work teams
are groups whose members work intensely on a specific, common goal using their positive
synergy, individual and mutual accountability, and complementary skills. In a work team, the
combined individual efforts of team members result in a level of performance that is greater than
the sum of those individual inputs.
Diff: 2
Page Ref: 244
Topic: Turning Groups into Effective Teams
32
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
140) In a short essay, identify two advantages and two disadvantages of group decision making.
Answer:
Advantages
a. Generate more complete information and knowledge. A group brings a diversity of
experience and perspectives to the decision process that an individual cannot.
b. Generate more diverse alternatives. Because groups have a greater amount and diversity of
information, they can identify more diverse alternatives than an individual.
c. Increase acceptance of a solution. Group members are reluctant to fight or undermine a
decision they have helped develop.
d. Increase legitimacy. Decisions made by groups may be perceived as being more legitimate
than decisions made unilaterally by one person.
Disadvantages
a. Time consuming. Groups almost always take more time to reach a solution than it would take
an individual.
b. Minority domination. The inequality of group members creates the opportunity for one or
more members to dominate others. A dominant and vocal minority frequently can have an
excessive influence on the final decision.
c. Pressures to conform. As we know from our earlier discussion, there are pressures to conform
in groups. Groupthink undermines critical thinking in the group and eventually harms the quality
of the final decision.24
d. Ambiguous responsibility. Group members share responsibility, but the responsibility of any
single member is diluted.
Diff: 2
Page Ref: 240-241
Topic: Turning Groups into Effective Teams
141) In a short essay, list and describe the four most common types of teams likely to be found in
today's organizations.
Answer: a. Problem-solving teamsthese teams are teams from the same department or
functional area who are involved in efforts to improve work activities or to solve specific
problems. In problem-solving teams, members share ideas or offer suggestions on how work
processes and methods can be improved. However, these teams are rarely given the authority to
unilaterally implement any of their suggested actions.
b. Self-managed teamsthese teams are formal groups of employees who operate without a
manager and are responsible for a complete work process or segment. The self-managed team is
responsible for getting the work done and for managing themselves. This usually includes
planning and scheduling of work, assigning tasks to members, collective control over the pace of
work, making operating decisions, and taking action on problems.
c. Cross-functional teamsthese teams are a hybrid grouping of individuals who are experts in
various specialties and who work together on various tasks.
d. Virtual teamsthese are teams that use computer technology to link physically dispersed
members in order to achieve a common goal. In a virtual team, members collaborate using
communication links such as wide area networks, videoconferencing, fax, e-mail, or even Web
sites where the team can hold online conferences. Virtual teams can do all the things that other
teams can–share information, make decisions, and complete tasks; however, they miss the
normal give-and-take of face-to-face discussions. Because of this omission, virtual teams tend to
be more task oriented especially if the team members have never personally met.
Diff: 1
Page Ref: 245
Topic: Turning Groups into Effective Teams
33
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
142) In a short essay, list and discuss five of the eight characteristics that are associated with
effective teams.
Answer: a. Clear goalshigh-performance teams have a clear understanding of the goal to be
achieved. Members are committed to the team's goals, know what they're expected to
accomplish, and understand how they will work together to achieve these goals.
b. Relevant skillseffective teams are composed of competent individuals. They have the
necessary technical and interpersonal skills to achieve the desired goals while working well
together. However, not everyone who is technically competent has the skills to work well as a
team member. High-performing teams have members who possess both technical and
interpersonal skills.
c. Mutual trusteffective teams are characterized by high mutual trust among members.
That is, members believe in each other's ability, character, and integrity. But as
you probably know from personal relationships, trust is fragile. Maintaining this trust
requires careful attention by managers.
d. Unified commitmentmembers of an effective team exhibit intense loyalty and dedication to
the team. They are willing to do whatever it takes to help their team succeed. This loyalty and
dedication is called unified commitment. Unified commitment is characterized by dedication to
the team's goals and a willingness to expend extraordinary amounts of energy to achieve them.
e. Good communicationeffective teams are characterized by good communication. Members
convey messages between each other in ways that are readily and easily understood. This
includes nonverbal as well as spoken messages. Good communication is also characterized by a
healthy dose of feedback from team members and managers. Feedback helps to guide team
members and to correct misunderstandings.
f. Negotiating skillseffective teams tend to be flexible and are continually making
adjustments in the responsibilities assigned to each member. This flexibility requires team
members to possess negotiating skills. Problems and relationships are regularly changing in
teams and members need to be able to confront and reconcile differences.
g. Appropriate leadershipeffective leaders can motivate a team to follow them through the
most difficult situations. How? They help clarify goals. They demonstrate that change is possible
by overcoming inertia. And they increase the self-confidence of team members, helping members
to more fully realize their potential. Increasingly, effective team leaders act in the roles of coach
and facilitator. They help guide and support the team, but don't control it.
h. Internal and external supportthe final condition necessary for an effective team is a
supportive climate. Internally, the team should have a sound infrastructure. This includes proper
training, a clear and reasonable measurement system that team members can use to evaluate their
overall performance, an incentive program that recognizes and rewards team activities, and a
supportive human resource system. Externally, managers should provide the team with the
resources needed to get the job done.
Diff: 3
Page Ref: 246-247
Topic: Turning Groups into Effective Teams
34
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
143) In a short essay, discuss the major issues associated with managing global teams.
Answer: a. In global organizations, understanding the relationship between group
performance and group member resources is more challenging because of the unique cultural
characteristics represented by members of a global team. In addition to recognizing team
members' abilities, skills, knowledge, and personality, managers need to be familiar with and
clearly understand the cultural characteristics of the groups and the group members they manage.
b. Some of the structural areas where we see differences in managing global teams include
conformity, status, social loafing, and cohesiveness. Research suggests that Asch's findings are
culture-bound. Despite this, however, groupthink tends to be less of a problem in global teams
because members are less likely to feel pressured to conform to the ideas, conclusions, and
decisions of the group. The importance of status varies between cultures. Managers should be
sure to understand who and what holds status when interacting with people from a culture
different from their own. Social loafing has a Western bias and is consistent with individualistic
cultures, which are dominated by self-interest. It's not consistent with collectivistic societies, in
which individuals are motivated by in-group goals. Cohesiveness is another group structural
element where managers may face special challenges. In global teams, cohesiveness is often
more difficult to achieve because of higher levels of mistrust, miscommunication, and stress.
c. The processes global teams use to do their work can be particularly challenging for
managers. For one thing, communication problems often arise because not all team members
may be fluent in the team's working language. This can lead to inaccuracies, misunderstandings,
and inefficiencies. However, research has also shown that a multicultural global team is better
able to capitalize on the diversity of ideas represented if a wide range of information is used.
Managing conflict in global teams, especially when those teams are virtual teams, isn't easy.
Conflict in multicultural teams can interfere with how information is used by the team. However,
research shows that in collectivistic cultures, a collaborative conflict management style can be
most effective.
d. Despite the challenges associated with managing global teams, there are things managers can
do to provide the group with an environment in which efficiency and effectiveness are enhanced.
First, because communication skills are vital, managers should focus on developing those skills.
Also, managers must consider cultural differences when deciding what type of global team to
use. Finally, it's vital that managers be sensitive to the unique differences of each member of the
global team. But, it's also important that team members be sensitive to each other as well.
Diff: 2
Page Ref: 248-249
Topic: Current Challenges in Managing Teams
Skill: AACSB: Globalizations
35
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 15 Motivating Employees
1) Motivation is a result of an interaction between a person and a situation.
Answer: TRUE
Diff: 1
Page Ref: 341
Topic: What Is Motivation?
2) The three key elements in the definition of motivation are energy, direction, and achievement.
Answer: FALSE
Diff: 3
Page Ref: 341
Topic: What Is Motivation?
3) High levels of effort don't necessarily lead to favorable job performance unless the effort is
channeled in a direction that benefits the organization.
Answer: TRUE
Diff: 1
Page Ref: 341
Topic: What Is Motivation?
4) The best-known theory of motivation is probably McGregor's Theories X and Y.
Answer: FALSE
Diff: 1
Page Ref: 342
Topic: Early Theories of Motivation
5) Maslow argued that each level in the needs hierarchy must be substantially satisfied before the
next is activated.
Answer: TRUE
Diff: 2
Page Ref: 342
Topic: Early Theories of Motivation
6) Maslow argued that each level in the needs hierarchy must be substantially satisfied before the
next is activated and that once a need is substantially satisfied, the next need becomes dominant.
Answer: TRUE
Diff: 2
Page Ref: 342
Topic: Early Theories of Motivation
7) Lower-order needs are satisfied internally while higher-order needs are predominantly
satisfied externally.
Answer: FALSE
Diff: 2
Page Ref: 342
Topic: Early Theories of Motivation
8) According to Herzberg, the factors that led to job satisfaction were separate and distinct from
those that led to job dissatisfaction.
Answer: TRUE
Diff: 2
Page Ref: 343
Topic: Early Theories of Motivation
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
9) The two-factor theory is also called Theory X and Theory Y.
Answer: FALSE
Diff: 1
Page Ref: 342-343
Topic: Early Theories of Motivation
10) Based on McClelland's three-needs theory, high achievers perform best when the odds are
against them.
Answer: FALSE
Diff: 2
Page Ref: 344
Topic: Contemporary Theories of Motivation
11) The best managers are high in the need for power and high in the need for affiliation.
Answer: FALSE
Diff: 3
Page Ref: 344
Topic: Early Theories of Motivation
12) David McClelland proposed the three-needs theory, which says there are three acquired
needs that are major motives in work.
Answer: TRUE
Diff: 3
Page Ref: 344
Topic: Early Theories of Motivation
13) Self-generated feedback has been shown to be a more powerful motivator than externally
generated feedback.
Answer: TRUE
Diff: 3
Page Ref: 346
Topic: Contemporary Theories of Motivation
14) Reinforcement theory is related to an individual's belief that he or she is capable of
performing a task.
Answer: FALSE
Diff: 2
Page Ref: 347
Topic: Contemporary Theories of Motivation
15) The key to reinforcement theory is that it ignores factors such as goals, expectations, and
needs and focuses solely on what happens to a person when he or she takes some action.
Answer: TRUE
Diff: 3
Page Ref: 347
Topic: Contemporary Theories of Motivation
16) Job design refers to the way tasks are combined to form complete jobs.
Answer: TRUE
Diff: 1
Page Ref: 348
Topic: Contemporary Theories of Motivation
17) Adding vertical depth to a job is called job enlargement.
Answer: FALSE
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
18) Reinforcement theory says that behavior is a function of its consequences.
Answer: TRUE
Diff: 2
Page Ref: 347
Topic: Contemporary Theories of Motivation
19) Job enlargement increases job depth.
Answer: FALSE
Diff: 1
Page Ref: 348
Topic: Contemporary Theories of Motivation
20) When a mail sorter's job is expanded to include mail delivery, the mail sorter has experienced
job enlargement.
Answer: TRUE
Diff: 1
Page Ref: 348
Topic: Contemporary Theories of Motivation
21) In the job characteristics model, skill variety refers to the degree to which a job requires
completion of a whole and identifiable piece of work.
Answer: FALSE
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
22) According to the job characteristics model, task identity is not important.
Answer: FALSE
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
23) According to equity theory, a person who earns $50,000 will be less satisfied with his or her
pay than a person who earns $100,000.
Answer: FALSE
Diff: 2
Page Ref: 350
Topic: Contemporary Theories of Motivation
24) Equity theory has three referent categories: other, system, and self.
Answer: TRUE
Diff: 2
Page Ref: 350
Topic: Contemporary Theories of Motivation
25) The three variables in Vroom's expectancy theory are valence, instrumentality, and
expectancy.
Answer: TRUE
Diff: 2
Page Ref: 351
Topic: Contemporary Theories of Motivation
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
26) Vroom would say that if a person values an outcome, his or her effort to obtain that outcome
will always be great.
Answer: FALSE
Diff: 2
Page Ref: 351-352
Topic: Contemporary Theories of Motivation
27) Equity theory has a relatively strong following in the United States.
Answer: TRUE
Diff: 1
Page Ref: 355
Topic: Current Issues in Motivation
28) Flextime is a scheduling system in which employees work four 10-hour days.
Answer: FALSE
Diff: 1
Page Ref: 356
Topic: Current Issues in Motivation
29) Job sharing consists of two or more people who split a full-time job.
Answer: TRUE
Diff: 1
Page Ref: 356
Topic: Current Issues in Motivation
30) Everybody is motivated by jobs that are high in autonomy, variety, and responsibilities.
Answer: FALSE
Diff: 2
Page Ref: 355-356
Topic: Current Issues in Motivation
31) ________ refers to the process by which a person's efforts are energized, directed, and
sustained toward attaining a goal.
A) Motivation
B) Leadership
C) Effort management
D) Need configuration
Answer: A
Diff: 2
Page Ref: 341
Topic: What Is Motivation?
32) What element of motivation is a measure of intensity or drive?
A) direction
B) energy
C) persistence
D) achievement
Answer: B
Diff: 1
Page Ref: 341
Topic: What Is Motivation?
4
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33) We want employees to ________ putting forth an effort to achieve organizational goals.
A) persist in
B) consider
C) stop
D) motivate others into
Answer: A
Diff: 1
Page Ref: 341
Topic: What Is Motivation?
34) The drive to find food, drink, and sexual satisfaction is based on what level of need?
A) physiological
B) safety
C) self-actualization
D) social
Answer: A
Diff: 2
Page Ref: 342
Topic: Early Theories of Motivation
35) An individual who wants to buy a home in an expensive neighborhood with a low crime rate
is satisfying which need?
A) esteem
B) safety
C) physiological
D) self-actualization
Answer: B
Diff: 2
Page Ref: 342
Topic: Early Theories of Motivation
36) Within Maslow's hierarchy of needs, the need for belonging is associated with ________.
A) physiological needs
B) safety needs
C) social needs
D) esteem needs
Answer: C
Diff: 1
Page Ref: 342
Topic: Early Theories of Motivation
37) The need for such factors as status, recognition, attention, self-respect, autonomy, and
achievement are examples of which of the following needs according to Maslow's hierarchy of
needs?
A) physiological
B) esteem
C) social
D) self-actualization
Answer: B
Diff: 2
Page Ref: 342
Topic: Early Theories of Motivation
5
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38) Growth, achieving one's potential, self-fulfillment, and the drive to become what one is
capable of becoming are characteristics of which need according to Maslow's hierarchy?
A) physiological
B) esteem
C) social
D) self-actualization
Answer: D
Diff: 2
Page Ref: 342
Topic: Early Theories of Motivation
39) Maslow argued that once a need is substantially satisfied, ________.
A) the next need becomes dominant
B) individuals no longer require that need
C) that need continues to motivate an individual
D) it becomes a higher-order need
Answer: A
Diff: 2
Page Ref: 342
Topic: Early Theories of Motivation
40) Which of the following is considered a lower-order need?
A) social
B) esteem
C) self-actualization
D) safety
Answer: D
Diff: 1
Page Ref: 342
Topic: Early Theories of Motivation
41) ________ assumes that employees have little ambition, dislike work, and avoid
responsibility.
A) Theory Y
B) Theory X
C) Self-actualization Need Theory
D) Belongingness Need Theory
Answer: B
Diff: 2
Page Ref: 342
Topic: Early Theories of Motivation
42) Theory Y assumes that people inherently ________.
A) want to belong more than anything else
B) avoid responsibility and need to be closely controlled
C) want to work and can exercise self-direction
D) work to satisfy hygiene factors
Answer: C
Diff: 2
Page Ref: 342
Topic: Early Theories of Motivation
6
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43) According to Herzberg, what characteristic is associated with job dissatisfaction?
A) advancement
B) status
C) work itself
D) growth
Answer: B
Diff: 1
Page Ref: 343
Topic: Early Theories of Motivation
44) According to Herzberg,when ________ are adequate, people won't be dissatisfied, but they
also will not be satisfied.
A) achievement needs
B) affiliation needs
C) power needs
D) hygiene factors
Answer: D
Diff: 2
Page Ref: 343
Topic: Early Theories of Motivation
45) According to Herzberg, in order to provide employees with job satisfaction, managers should
concentrate on ________.
A) hygiene factors
B) issues such as pay
C) motivator factors (moderate)
D) extrinsic factors
Answer: C
Diff: 2
Page Ref: 343
Topic: Early Theories of Motivation
46) According to McClelland, the need to make others behave in a way they wouldn't have
behaved otherwise is which of the following work motives?
A) need for achievement
B) need for power
C) need for affiliation
D) need for motivation
Answer: B
Diff: 1
Page Ref: 344
Topic: Contemporary Theories of Motivation
47) Which of the following suggests that there is a desire for friendly and close interpersonal
relationships at work?
A) need for achievement
B) need for power
C) need for fulfillment
D) need for affiliation
Answer: D
Diff: 2
Page Ref: 344
Topic: Contemporary Theories of Motivation
7
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48) An individual who would enjoy taking on the challenge of personally redesigning the work
flow of a manufacturing line to improve employee productivity would probably be rated high on
which of the following?
A) need for affiliation
B) need for impact
C) need for achievement
D) need for power
Answer: C
Diff: 3
Page Ref: 344
Topic: Contemporary Theories of Motivation
49) Goal setting works best when the goals are ________.
A) specific
B) indefinite
C) infinite
D) moderately challenging
Answer: A
Diff: 1
Page Ref: 345
Topic: Contemporary Theories of Motivation
50) Difficult goals, when accepted, result in ________.
A) lower performance than easy goals
B) higher performance than easy goals
C) low satisfaction
D) higher dissatisfaction
Answer: B
Diff: 2
Page Ref: 345
Topic: Contemporary Theories of Motivation
51) Which factor has been found to influence the goals––performance relationship?
A) goal commitment
B) easy goals
C) foreign culture
D) external locus of control
Answer: A
Diff: 3
Page Ref: 346
Topic: Contemporary Theories of Motivation
52) People will do better when they get ________ because it helps identify discrepancies
between what they have done and what they want to do.
A) input
B) goals
C) equity
D) feedback
Answer: D
Diff: 1
Page Ref: 346
Topic: Contemporary Theories of Motivation
8
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53) The higher your ________, the more confidence you have in your ability to succeed in a task.
A) self-efficacy
B) self-esteem
C) reinforcers
D) job scope
Answer: A
Diff: 1
Page Ref: 346
Topic: Contemporary Theories of Motivation
54) Goal setting is more effective in cultures located in ________.
A) Asia
B) North America
C) South America
D) Europe
Answer: B
Diff: 2
Page Ref: 347
Topic: Contemporary Theories of Motivation
Skill: AACSB: Globalizations
55) The concept that behavior is a function of consequences is known as ________.
A) reinforcement theory
B) leadership
C) group dynamics
D) human resource management
Answer: A
Diff: 1
Page Ref: 347
Topic: Contemporary Theories of Motivation
56) Reinforcement theorists believe that behavior results from ________.
A) external consequences
B) internal personality traits, such as need for achievement
C) setting high goals
D) intrinsic satisfiers
Answer: A
Diff: 2
Page Ref: 347
Topic: Contemporary Theories of Motivation
57) A ________ is any consequence immediately following a response that increases the
probability that the behavior will be repeated.
A) goal
B) reinforcer
C) conclusion
D) job characteristics model
Answer: B
Diff: 2
Page Ref: 347
Topic: Contemporary Theories of Motivation
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58) According to reinforcement theory, rewards are effective if they ________ a desired
behavior.
A) precede
B) follow
C) coincide with
D) decrease
Answer: B
Diff: 2
Page Ref: 347
Topic: Contemporary Theories of Motivation
59) Behavior that is not rewarded, or is punished, is ________.
A) extinguished
B) not high on a list of priorities
C) unstructured
D) less likely to be repeated
Answer: D
Diff: 2
Page Ref: 347
Topic: Contemporary Theories of Motivation
60) ________ is the way tasks are combined to form complete jobs.
A) Job scope
B) Job enlargement
C) Job enrichment
D) Job design
Answer: D
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
61) The number of different tasks required in a job and the frequency with which those tasks are
repeated is ________.
A) scope
B) enlargement
C) enrichment
D) design
Answer: A
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
62) One of the first attempts to design jobs horizontally expanded jobs and is known as job
________.
A) enlargement
B) scope
C) rotation
D) enrichment
Answer: A
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
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63) An approach to designing motivating jobs that includes the vertical expansion of a job by
adding planning and evaluating responsibilities is ________.
A) job enrichment
B) job enlargement
C) reinforcement theory
D) job characteristics model
Answer: A
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
64) Job ________ is vertical expansion of a job by adding planning and evaluating
responsibilities.
A) scope
B) enlargement
C) enrichment
D) design
Answer: C
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
65) The research evidence on the use of job enrichment programs could be classified as
________.
A) encouraging
B) strongly supportive
C) moderately supportive
D) inconclusive
Answer: D
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
66) Which one of the following identifies five primary job characteristics, their
interrelationships, and their impact on employee productivity, motivation, and satisfaction?
A) job characteristics model
B) job enlargement
C) job enrichment
D) job rotation
Answer: A
Diff: 2
Page Ref: 348-349
Topic: Contemporary Theories of Motivation
67) The job characteristics model (JCM) identifies ________ as the degree to which a job has
substantial impact on the lives or work of other people.
A) task significance
B) task identity
C) skill variety
D) autonomy
Answer: A
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
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68) ________ is the degree to which a job provides substantial freedom, independence, and
discretion to the individual in scheduling the work and determining the procedures to be used in
carrying it out.
A) Task significance
B) Task identity
C) Skill variety
D) Autonomy
Answer: D
Diff: 1
Page Ref: 349
Topic: Contemporary Theories of Motivation
69) ________ is the degree to which carrying out the work activities required by a job results in
an individual's obtaining direct and clear information about the effectiveness of his or her
performance.
A) Task significance
B) Task identity
C) Skill variety
D) Feedback
Answer: D
Diff: 2
Page Ref: 349
Topic: Contemporary Theories of Motivation
70) The job characteristics model provides guidance to managers concerning ________.
A) job design
B) employee selection
C) pay satisfaction
D) collective bargaining
Answer: A
Diff: 1
Page Ref: 349
Topic: Contemporary Theories of Motivation
71) A theory that suggests that employees compare their inputs and outcomes from a job to the
ratio of input to outcomes of relevant others is known as ________.
A) action motivation
B) goal setting
C) reinforcement theory
D) equity theory
Answer: D
Diff: 2
Page Ref: 350
Topic: Contemporary Theories of Motivation
72) In general, the research support for equity theory could be described as ________.
A) considerable
B) moderate
C) weak
D) inconclusive
Answer: A
Diff: 2
Page Ref: 350
Topic: Contemporary Theories of Motivation
12
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73) Which expectancy theory linkage explains the belief that having a high grade point average
is critical in obtaining a good job?
A) instrumentality
B) expectancy
C) goal setting to achievement
D) valence
Answer: A
Diff: 3
Page Ref: 351
Topic: Contemporary Theories of Motivation
74) The importance that an individual places on a potential outcome or reward that can be
achieved on the job is known as ________.
A) valence or attractiveness of reward
B) operant learning opportunity
C) effort performance linkage or expectancy
D) goal-setting behavior
Answer: A
Diff: 2
Page Ref: 351
Topic: Contemporary Theories of Motivation
75) Maslow's hierarchy aligns well with employees in ________.
A) the United States
B) Mexico
C) Japan
D) Greece
Answer: A
Diff: 2
Page Ref: 354
Topic: Current Issues in Motivation
Skill: AACSB: Globalizations
76) The view that a high achievement need acts as an internal motivator presupposes a
willingness to accept a moderate degree of risk and a concern with performance, two cultural
characteristics that are relatively absent in ________.
A) Canada
B) Chile
C) Great Britain
D) the United States
Answer: B
Diff: 1
Page Ref: 355
Topic: Current Issues in Motivation
Skill: AACSB: Globalizations
13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
77) Consistent with a legacy of communism and centrally planned economies, employees exhibit
________.
A) less expectations of outputs
B) low interest in rewards
C) a low desire for interesting work
D) a greater entitlement attitude
Answer: D
Diff: 2
Page Ref: 355
Topic: Current Issues in Motivation
Skill: AACSB: Globalizations
78) What seems important to almost all workers, regardless of their national culture?
A) the need to achieve
B) the need for self-actualization
C) the desire for interesting work
D) the desire for equity
Answer: C
Diff: 2
Page Ref: 355
Topic: Current Issues in Motivation
Skill: AACSB: Globalizations
79) In a study comparing job-preference outcomes among graduate students in the United States,
Canada, Australia, and Singapore, what factor was not tied for first?
A) achievement
B) flexibility
C) growth
D) responsibility
Answer: B
Diff: 2
Page Ref: 355
Topic: Current Issues in Motivation
Skill: AACSB: Globalizations
80) To maximize motivation among today's diverse work force, managers need to think in terms
of ________.
A) flexibility
B) consistency
C) needs
D) wants
Answer: A
Diff: 1
Page Ref: 356
Topic: Current Issues in Motivation
Skill: AACSB: Multicultural and Diversity
14
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
81) In ________, employees work fewer days, but more hours per day.
A) a reorganization
B) flexible work hours
C) a job characteristics model
D) a compressed workweek
Answer: D
Diff: 2
Page Ref: 356
Topic: Current Issues in Motivation
82) ________ work hours are where employees work a certain number of hours per week, but
are free, within limits, to vary the hours of work.
A) Flexible
B) Compressed
C) Congruent
D) Parallel
Answer: A
Diff: 1
Page Ref: 356
Topic: Current Issues in Motivation
83) What type of job scheduling option would allow two different employees to share one 40hour-a-week systems analyst position?
A) compressed workweek
B) job sharing
C) flextime
D) telecommuting
Answer: B
Diff: 1
Page Ref: 356
Topic: Current Issues in Motivation
84) The linking by computer and modem of workers at home with coworkers and management at
an office is termed ________.
A) job sharing
B) compressed workweek
C) flextime
D) telecommuting
Answer: D
Diff: 1
Page Ref: 356
Topic: Current Issues in Motivation
85) What is a potential disadvantage of telecommuting?
A) flexible hours
B) unsatisfied social needs
C) no commuting
D) casual dress
Answer: B
Diff: 1
Page Ref: 356
Topic: Current Issues in Motivation
15
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
86) Successful motivation of professions requires that managers recognize that the loyalty of
professionals is usually toward their ________.
A) employer
B) short-term financial well-being
C) long-term financial well-being
D) profession
Answer: D
Diff: 2
Page Ref: 357
Topic: Current Issues in Motivation
87) All of the following are mentioned as suggestions to motivate professionals except
________.
A) providing them with ongoing challenging projects
B) using money and promotions
C) allowing them to structure their work in ways they find productive
D) rewarding them with recognition
Answer: B
Diff: 2
Page Ref: 357
Topic: Current Issues in Motivation
88) What will motivate involuntarily temporary employees?
A) pay them more
B) provide health care benefits
C) provide job challenge
D) provide the opportunity for training
Answer: D
Diff: 2
Page Ref: 358
Topic: Current Issues in Motivation
89) When temps work alongside permanent employees who earn more and get benefits for doing
the same job, the ________.
A) temps tend to work more diligently in hopes of gaining a permanent position
B) permanent employees tend to work more diligently
C) performance of temps is likely to suffer
D) performance of permanent employees is likely to suffer
Answer: C
Diff: 2
Page Ref: 358
Topic: Current Issues in Motivation
90) How would a manager motivate low-skilled, minimum-wage employees?
A) offer more pay for high levels of performance
B) use employee recognition programs
C) provide the opportunity for training
D) provide the opportunity for full-time employment
Answer: B
Diff: 2
Page Ref: 358
Topic: Current Issues in Motivation
16
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
91) Which of the following is not mentioned as a reward program?
A) employee incentive programs
B) pay-for-performance programs
C) employee recognition programs
D) stock option programs
Answer: A
Diff: 2
Page Ref: 358
Topic: Current Issues in Motivation
92) ________ is a motivational approach in which an organization's financial statements are
opened to and shared with all employees.
A) Open-book management
B) Expectancy theory
C) Pay-for-performance
D) Equity theory
Answer: A
Diff: 1
Page Ref: 358
Topic: Current Issues in Motivation
93) Attempts to show the financial condition of the firm to employees to get them to think like
owners of the firm are known as ________.
A) pay-for-performance programs
B) work sharing arrangements
C) telecommuting
D) open-book management
Answer: D
Diff: 3
Page Ref: 358
Topic: Current Issues in Motivation
94) ________ consists of personal attention and expressing interest, approval, and appreciation
for a job well done.
A) A pay-for-performance program
B) A stock option program
C) An employee recognition program
D) Open-book management
Answer: C
Diff: 1
Page Ref: 359
Topic: Current Issues in Motivation
95) Consistent with ________, rewarding a behavior using employee recognition programs
immediately following behavior is likely to encourage its repetition.
A) expectancy theory
B) reinforcement theory
C) equity theory
D) Maslow's hierarchy of needs
Answer: B
Diff: 2
Page Ref: 359
Topic: Current Issues in Motivation
17
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
96) What is an example of an employee recognition program?
A) handwritten notes acknowledging something positive that the employee has done
B) piece-rate pay plans
C) lump-sum bonuses
D) stock options
Answer: A
Diff: 1
Page Ref: 359
Topic: Current Issues in Motivation
97) Compensation plans that pay employees based on the basis of their contribution to the
effectiveness of the organization are referred to as ________.
A) pay-for-performance programs
B) expectancy theory
C) equity theory
D) stock options
Answer: A
Diff: 1
Page Ref: 360
Topic: Current Issues in Motivation
98) Piece-rate pay plans, wage incentive plans, profit sharing, and lump-sum bonuses are
examples of ________ programs.
A) open-book management
B) expectancy theory
C) pay-for-performance
D) equity theory
Answer: C
Diff: 1
Page Ref: 360
Topic: Current Issues in Motivation
99) ________ are financial instruments that give employees the right to purchase shares of stock
at a set price.
A) Stock options
B) Open-book management
C) Employee recognition programs
D) Pay-for-performance programs
Answer: A
Diff: 1
Page Ref: 360
Topic: Current Issues in Motivation
100) The literature on ________ suggests that managers should ensure that employees have hard,
specific goals and feedback on how well they are doing in achieving those goals.
A) goal-setting theory
B) equity theory
C) reinforcement theories
D) expectancy theory
Answer: A
Diff: 2
Page Ref: 361
Topic: Current Issues in Motivation
18
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
101) Managers must be sure that employees feel confident that increased efforts ________.
A) can earn them a promotion
B) can lead to achieving performance goals
C) will most definitely result in high achievement
D) will earn them just pay
Answer: B
Diff: 2
Page Ref: 361
Topic: Current Issues in Motivation
102) Which of the following is not a suggestion for motivating employees?
A) recognize individual differences
B) make goals very difficult to achieve
C) match people to jobs
D) individualize rewards
Answer: B
Diff: 1
Page Ref: 361
Topic: Current Issues in Motivation
103) Following the ideas of ________, managers should check the system to see that employees
perceive the rewards as being equal to the inputs.
A) expectancy theory
B) three-needs theory
C) goal-setting theory
D) equity theory
Answer: D
Diff: 1
Page Ref: 362
Topic: Contemporary Theories of Motivation
104) In a stagnant economy where cost-cutting is widespread, ________ is a low-cost means to
reward employees.
A) linking rewards to performance
B) individualizing rewards
C) using recognition
D) offering contingent bonuses
Answer: C
Diff: 1
Page Ref: 362
Topic: Contemporary Theories of Motivation
19
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Motivation to Study (Scenario)
Joan has considered her own motivation and discussed it with some of her peers who live in her
dormitory. She discovers some distinct differences in attitude with these students and their
motivation to study.
105) As she talked to other students, Joan saw some students who needed more direction in their
classroom studies because they had little or no ambition if they were left to their own motivation.
This view is similar to ________ needs.
A) physiological
B) safety
C) social
D) self-actualization
Answer: D
Diff: 1
Page Ref: 342
Topic: Early Theories of Motivation
106) In one class, Joan questions how fairly she is being treated compared to other students. This
part of her motivational processes would best fit into ________.
A) Maslow's hierarchy
B) Herzberg's motivation-hygiene theory
C) equity theory
D) reinforcement theory
Answer: C
Diff: 2
Page Ref: 350
Topic: Contemporary Theories of Motivation
107) In one of her own classes, Joan can see the material is related to growth and achievement in
her career. She is given responsibility to help other students. In Joan's motivational processes, as
described by Herzberg, this class serves as a(n) ________.
A) achievement need
B) motivator
C) power need
D) hygiene factor
Answer: B
Diff: 1
Page Ref: 343
Topic: Early Theories of Motivation
20
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Changing Jobs (Scenario)
Marty sat in his favorite chair at home and pondered his work situation. The funding in his
division had been cut by 25 percent, but the numerical goals did not budge. Something had to
change, and he knew it was his job to figure out how to make the goals reachable. He had
decided to try to make it work by changing the way tasks are combined in each job. First, he
needed to know how many tasks there were to each job and how frequently each task is repeated.
He also knew that because of the funding cut, people were going to be asked to increase their job
tasks horizontally. But, he also felt that to balance this he should add planning and evaluating
responsibilities. No one looked forward to this coming yearmanagers or staffbut it was do or
die.
108) Marty is looking at job ________, or "the way tasks are combined in each job."
A) enlargement
B) scope
C) depth
D) design
Answer: D
Diff: 3
Page Ref: 348
Topic: Contemporary Theories of Motivation
109) Marty was going to ask people to horizontally increase their jobs, also known as job
________.
A) enlargement
B) scope
C) enrichment
D) design
Answer: A
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
110) The vertical expansion of employees' jobs, or job ________, was also suggested by Marty.
A) enlargement
B) scope
C) enrichment
D) design
Answer: C
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
21
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
111) Together, even though the employees were clearly being asked to contribute more, he felt
they would have a greater degree of control over their work. ________ describes the degree of
control the employees will have over their work.
A) Job enlargement
B) Job depth
C) Job enrichment
D) Job design
Answer: B
Diff: 3
Page Ref: 348
Topic: Contemporary Theories of Motivation
Acme Corporation (Scenario)
Acme Corporation's management feels that employees could be more motivated by their jobs.
The jobs were enlarged earlier and some improvements were seen in motivation.
112) Acme Corporation accomplished the process of enlarging the jobs by ________.
A) changing the pay structure
B) horizontally expanding the jobs
C) changing the number of breaks during a shift
D) increasing the number of days away from work per month
Answer: B
Diff: 2
Page Ref: 348
Topic: Contemporary Theories of Motivation
113) To increase the motivation, Acme decides to increase the meaningfulness of the work. This
can be done by ________.
A) increasing skill variety
B) decreasing task identity
C) decreasing task significance
D) increasing dependence
Answer: A
Diff: 2
Page Ref: 349
Topic: Contemporary Theories of Motivation
114) To further enhance the jobs at Acme, managers divided the tasks into jobs that allowed
employees to use a collection of skills and talents. These changes could be described as a core
dimension of the job characteristics model known as ________.
A) skill variety
B) task identity
C) feedback
D) autonomy
Answer: A
Diff: 2
Page Ref: 349
Topic: Contemporary Theories of Motivation
22
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
115) Most jobs at Acme were redesigned to allow the employees to complete a whole and
identifiable piece of work. This fits ________, a core dimension of the job characteristics model.
A) skill variety
B) task identity
C) task significance
D) autonomy
Answer: B
Diff: 2
Page Ref: 349
Topic: Contemporary Theories of Motivation
116) In addition to these changes, the managers at Acme explained how the jobs were now
designed to allow the job to affect the lives and work of other people. This serves as ________, a
core dimension in the job characteristics model.
A) skill variety
B) task identity
C) task significance
D) autonomy
Answer: C
Diff: 2
Page Ref: 349
Topic: Contemporary Theories of Motivation
117) As a final point in redesigning the jobs at Acme, the managers developed a program that
allowed the employees to have a large degree of freedom in their jobs while giving them
information as to the outcomes of their work. These changes serve as ________, a core
dimension in the job characteristics model.
A) task significance
B) autonomy
C) task identity
D) skill variety
Answer: B
Diff: 3
Page Ref: 349
Topic: Contemporary Theories of Motivation
23
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
A Management Tool (Scenario)
The managers wanted and needed something they could actually use as a tool for redesigning the
jobs in their departments. They had now sat through four days of management training, but so
far, with all of the fancy theories, they had not received any specific guidance in this area.
Finally, on the last day of the training, they learned about the job characteristics model. Sure, it
still had all of the theory and other academic jargon, but it also provided some specific steps to
help improve the core job dimensions.
118) One suggestion, ________, encourages putting existing fragmented tasks back together to
increase skill variety and task identity.
A) combining tasks
B) creating natural work units
C) establishing client relationships
D) expanding jobs vertically
Answer: A
Diff: 1
Page Ref: 350
Topic: Contemporary Theories of Motivation
119) The model also suggests that ________ will increase employee "ownership" of the work
and help them view their work as meaningful.
A) combining tasks
B) creating natural work units
C) establishing client relationships
D) expanding jobs vertically
Answer: B
Diff: 3
Page Ref: 350
Topic: Contemporary Theories of Motivation
120) ________ partially closes the gap between the "doing" and the "controlling" aspects of the
job and increases employee autonomy.
A) Combining tasks
B) Creating natural work units
C) Establishing client relationships
D) Expanding jobs vertically
Answer: D
Diff: 3
Page Ref: 350
Topic: Contemporary Theories of Motivation
121) Another suggestion, ________, allows employees to judge the level of their performance.
A) combining tasks
B) creating natural work units
C) establishing client relationships
D) opening feedback channels
Answer: D
Diff: 2
Page Ref: 350
Topic: Contemporary Theories of Motivation
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Angie's Subordinates (Scenario)
Angie wants to understand what her subordinates think about their jobs. These employees are
unmotivated.
122) The employees begin to compare their pay and work conditions to the pay and work
conditions of friends and relatives who work in other companies in the local area. This process
falls under ________ theory.
A) reinforcement
B) expectancy
C) goal-setting
D) equity
Answer: D
Diff: 2
Page Ref: 350
Topic: Contemporary Theories of Motivation
123) Angie tries to find how strongly employees believed that if they put effort into their work
that they would perform the job satisfactorily. This could be defined as ________.
A) expectancy
B) instrumentality
C) valence
D) equity
Answer: A
Diff: 1
Page Ref: 351
Topic: Contemporary Theories of Motivation
124) Angie tries to convince the employees that things will get better if they will work harder. As
a process of talking to employees, Angie suggests that she will get raises for the employees based
on their harder work. The employees do not believe that Angie can get them raises for working
harder. The employees' ________ is not very strong.
A) expectancy
B) instrumentality
C) valence
D) equity
Answer: B
Diff: 3
Page Ref: 351
Topic: Contemporary Theories of Motivation
125) In the end, the employees decide to work harder, and Angie is allowed to give them a raise
of 2 percent. Several of the employees feel the raise was too small. This reinforced their feeling
that the company will never pay them based on the value they add to the company. This idea
refers to ________.
A) expectancy
B) instrumentality
C) valence
D) reinforcement
Answer: C
Diff: 3
Page Ref: 351
Topic: Contemporary Theories of Motivation
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What Do You Expect? (Scenario)
The employees at Acme Toilets Inc. are not working as hard as Jill, their supervisor, would like.
The salespeople aren't meeting their sales quotas, and Jill can't seem to motivate them to try
harder. Jill has been studying expectancy theory and has decided to try to put it into practice.
126) Employees are never able to meet their sales quotas and believe that no matter how hard
they work, they'll never meet them. They perceive the ________ of their success to be low.
A) instrumentality
B) expectancy
C) valence
D) performance-reward linkage
Answer: B
Diff: 3
Page Ref: 351
Topic: Contemporary Theories of Motivation
127) Employees believe that they can make their sales quotas, but aren't sure that management
will really reward them when they do. They perceive the ________ to be low.
A) instrumentality
B) expectancy
C) valence
D) effort-performance linkage
Answer: A
Diff: 3
Page Ref: 351
Topic: Contemporary Theories of Motivation
128) Management has set the reward for meeting sales quotas at a lower level than last year.
Employees perceive that the ________ is low.
A) instrumentality
B) expectancy
C) valence
D) performance-reward linkage
Answer: C
Diff: 3
Page Ref: 351
Topic: Contemporary Theories of Motivation
129) Jill has arranged for the bonus system to be changed so that the bonus for meeting sales
quotas is much higher than it has ever been before. Jill has altered the ________.
A) instrumentality
B) expectancy
C) valence
D) performance-reward linkage
Answer: C
Diff: 2
Page Ref: 351
Topic: Contemporary Theories of Motivation
26
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Design Your Own Job (Scenario)
Terrence has been brought in to a high-tech company to institute family-friendly programs. He
has decided that because of the diverse work force, alternative working hours will be very
attractive to the employees.
130) Terrence allows employees to work four 10-hour days instead of the traditional 5-day
workweek. This work arrangement is termed ________.
A) home-based work
B) a compressed workweek
C) flextime
D) job sharing
Answer: B
Diff: 1
Page Ref: 356
Topic: Current Issues in Motivation
131) Terrence is allowing two people to split a 40-hour-a-week job. They are splitting the work
and the benefits in an arrangement termed ________.
A) flexible work hours
B) a compressed workweek
C) flextime
D) job sharing
Answer: D
Diff: 1
Page Ref: 356
Topic: Current Issues in Motivation
132) Some employees that Terrence will manage are working from home via computers. This
work arrangement is termed ________.
A) flexible work hours
B) flextime
C) job sharing
D) telecommuting
Answer: D
Diff: 1
Page Ref: 356
Topic: Current Issues in Motivation
27
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133) In a short essay, explain the concept of motivation. Then identify and describe the three key
aspects of motivation.
Answer: Motivation refers to the process by which a person's efforts are energized, directed, and
sustained toward attaining a goal. Although, generally speaking, motivation involves any effort
exerted toward a goal, we're most interested in organizational goals because our focus is on
work-related behavior. Three key elements are important to this definition: energy, direction, and
persistence. The energy element is a measure of intensity or drive. A motivated person puts forth
effort and works hard. However, the quality of the effort must be considered as well as its
intensity. High levels of effort don't necessarily lead to favorable job performance unless the
effort is channeled in a direction that benefits the organization. Effort that's directed toward, and
consistent with, organizational goals is the kind of effort we want from employees. Finally,
motivation includes a persistence dimension. We want employees to persist in putting forth effort
to achieve those goals.
Diff: 1
Page Ref: 341
Topic: What Is Motivation?
134) In a short essay, list and discuss the five needs that are based on Maslow's hierarchy of
needs theory.
Answer:
a. Physiological needs: food, drink, shelter, sexual satisfaction, and other physical requirements.
b. Safety needs: security and protection from physical and emotional harm, as well as assurance
that physical needs will continue to be met.
c. Social needs: affection, belongingness, acceptance, and friendship.
d. Esteem needs: internal esteem factors such as self-respect, autonomy, and achievement and
external esteem factors such as status, recognition, and attention.
e. Self-actualization needs: growth, achieving one's potential, and self-fulfillment; the drive to
become what one is capable of becoming.
Diff: 1
Page Ref: 342
Topic: Early Theories of Motivation
28
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135) In a short essay, list and discuss the three-needs theory according to David McClelland.
Next, identify which of these needs has been studied most extensively and discuss the findings of
this research.
Answer: The three-needs theory says there are three needs that are major motives in work. These
three needs include the need for achievement, which is the drive to excel, to achieve in relation
to a set of standards, and to strive to succeed; the need for power, which is the need to make
others behave in a way that they would not have behaved otherwise; and the need for affiliation,
which is the desire for friendly and close interpersonal relationships. Of these three needs, the
need for achievement has been researched most extensively. The findings show that people with
a high need for achievement are striving for personal achievement rather than for the trappings
and rewards of success. They have a desire to do something better or more efficiently than it's
been done before. They prefer jobs that offer personal responsibility for finding solutions to
problems, in which they can receive rapid and unambiguous feedback on their performance in
order to tell whether they're improving, and in which they can set moderately challenging goals.
High achievers aren't gamblers; they dislike succeeding by chance. They are motivated by and
prefer the challenge of working at a problem and accepting the personal responsibility for
success or failure. An important point is that high achievers avoid what they perceive to be very
easy or very difficult tasks.
Diff: 3
Page Ref: 344
Topic: Contemporary Theories of Motivation
136) In a short essay, discuss the equity theory and list five probable behavioral responses that
may occur when employees perceive an inequity.
Answer: Equity theory proposes that employees perceive what they get from a job situation
(outcomes) in relation to what they put into it (inputs) and then compare their inputs-outcomes
ratios to those of relevant others. If an employee perceives his or her ratio to be equal to those of
relevant others a state of equity exists. In other words, he or she perceives that the situation is
fair. However, if the ratio is unequal, inequity exists and the employees view themselves as under
rewarded or over rewarded. When inequities occur, employees attempt to do something about it.
Equity theory proposes that employees might (1) distort either their own or others' inputs or
outcomes, (2) behave in some way to induce others to change their inputs or outcomes, (3)
behave in some way to change their own inputs or outcomes, (4) choose a different comparison
person, or (5) quit their job.
Diff: 2
Page Ref: 350
Topic: Contemporary Theories of Motivation
137) In a short essay, contrast distributive justice and procedural justice.
Answer: Distributive justice has historically provided the basis for equity theory. It is the
perceived fairness of the amount and allocation of rewards among individuals. More recent
equity research has focused on procedural justice, which is the perceived fairness of the process
used to determine the distribution of rewards. Distributive justice has a greater influence on
employee satisfaction than procedural justice does. Procedural justice tends to affect an
employee's organizational commitment, trust in his or her boss, and intention to quit.
Diff: 1
Page Ref: 351
Topic: Contemporary Theories of Motivation
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138) In a short essay, explain which theories work best for certain cultures. The discussion
should include Maslow's need hierarchy, the three-needs theory, the equity theory, and Herzberg's
two-factor theory.
Answer: a. Maslow's need hierarchy argues that people start at the physiological level and
then move progressively up the hierarchy in order. This hierarchy, if it has any application at all,
aligns with American culture. In countries like Japan, Greece, and Mexico, where uncertainty
avoidance characteristics are strong, security needs would be on top of the need hierarchy.
Countries that score high on nurturing characteristicsDenmark, Sweden, Norway, the
Netherlands, and Finlandwould have social needs on top. We would predict, for instance, that
group work will be more motivating when the country's culture scores high on the nurturing
criterion.
b. Another motivation concept that clearly has an American bias is the achievement need. The
view that a high achievement need acts as an internal motivator presupposes two cultural
characteristicsa willingness to accept a moderate degree of risk (which excludes countries with
strong uncertainty avoidance characteristics) and a concern with performance (which applies
almost singularly to countries with strong achievement characteristics). This combination is
found in Anglo-American countries like the United States, Canada, and Great Britain. On the
other hand, these characteristics are relatively absent in countries such as Chile and Portugal.
c. Equity theory has a relatively strong following in the United States. That's not surprising
given that U.S.-style reward systems are based on the assumption that workers are highly
sensitive to equity in reward allocations. In the United States, equity is meant to closely link pay
to performance. However, recent evidence suggests that in collectivist cultures, especially in the
former socialist countries of central and eastern Europe, employees expect rewards to reflect
their individual needs as well as their performance. Moreover, consistent with a legacy of
communism and centrally planned economies, employees exhibited a greater "entitlement"
attitude–that is, they expected outcomes to be greater than their inputs. These findings suggest
that U.S.-style pay practices may need to be modified, especially in Russia and other former
communist countries, in order to be perceived as fair by employees.
d. Despite these cross-cultural differences in motivation, don't assume there are no crosscultural consistencies, because there are some. For instance, the desire for interesting work seems
important to almost all workers, regardless of their national culture. In a study of seven countries,
employees in Belgium, Britain, Israel, and the United States ranked "interesting work" number
one among 11 work goals. It was ranked either second or third in Japan, the Netherlands, and
Germany. Similarly, in a study comparing job-preference outcomes among graduate students in
the United States, Canada, Australia, and Singapore, growth, achievement, and responsibility
were rated the top three and had identical rankings. Both studies suggest some universality to the
importance of intrinsic factors identified by Herzberg in his two-factor theory. Another recent
study examining work place motivation trends in Japan also seems to indicate that Herzberg's
model is applicable to Japanese employees.
Diff: 3
Page Ref: 354-355
Topic: Current Issues in Motivation
Skill: AACSB: Globalizations
30
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
139) In a short essay, describe how managers might motivate professional workers. Contrast that
with how managers might motivate contingent workers.
Answer: What motivates professionals? Money and promotions typically are low on their
priority list. Why? They tend to be well paid and enjoy what they do. In contrast, job challenge
tends to be ranked high. They like to tackle problems and find solutions. Their chief reward in
their job is the work itself. Professionals also value support. They want others to think that what
they are working on is important. That may be true for all employees, but professionals tend to
be focused on their work as their central life interest, whereas nonprofessionals typically have
other interests outside of work that can compensate for needs not met on the job. On the other
hand, what will motivate involuntarily temporary employees? An obvious answer is the
opportunity to become a permanent employee. In cases in which permanent employees are
selected from a pool of temps, the temps will often work hard in hopes of becoming permanent.
A less obvious answer is the opportunity for training. The ability of a temporary employee to find
a new job is largely dependent on his or her skills. If the employee sees that the job he or she is
doing can help develop marketable skills, then motivation is increased. From an equity
standpoint, you should also consider the repercussions of mixing permanent and temporary
workers when pay differentials are significant. When temps work alongside permanent
employees who earn more, and get benefits, too, for doing the same job, the performance of
temps is likely to suffer. Separating such employees or perhaps minimizing interdependence
between them might help managers decrease potential problems.
Diff: 3
Page Ref: 357-358
Topic: Current Issues in Motivation
140) In a short essay, list and discuss 6 of the 10 specific recommendations that should be
followed when motivating employees.
Answer:
a. Recognize individual differencesalmost every contemporary motivation theory recognizes
that employees aren't identical. They have different needs, attitudes, personality, and other
important individual variables.
b. Match people to jobsthere's a great deal of evidence showing the motivational benefits of
carefully matching people to jobs. For example, high achievers should have jobs that allow them
to participate in setting moderately challenging goals and that involve autonomy and feedback.
However, keep in mind that not everybody is motivated by jobs that are high in autonomy,
variety, and responsibility.
c. Use goalsmanagers should ensure that employees have hard, specific goals and feedback
on how well they're doing in achieving those goals. The determination of whether goals should
be assigned by the manager or set with the employee's participation depends on the perception of
goal acceptance and the organization's culture. If resistance to goals is expected, participation
should increase acceptance. If participation is inconsistent with the culture, use assigned goals.
d. Ensure that goals are perceived as attainableregardless of whether goals are actually
attainable, employees who see goals as unattainable will reduce their effort. Managers must be
sure, therefore, that employees feel confident that increased efforts can lead to achieving
performance goals.
e. Individualize rewardsbecause employees have different needs, what acts as a reinforcer for
one may not for another. Managers should use their knowledge of employee differences to
individualize the rewards they control, such as pay, promotions, recognition, desirable work
assignments, autonomy, and participation.
31
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
f. Link rewards to performancemanagers need to make rewards contingent on performance.
Rewarding factors other than performance will only reinforce those other factors. Important
rewards such as pay increases and promotions should be given for the attainment of specific
goals. Managers should also look for ways to increase the visibility of rewards, making them
potentially more motivating.
g. Check the system for equityemployees should perceive that rewards or outcomes are equal
to the inputs. On a simple level, experience, ability, effort, and other obvious inputs should
explain difference in pay, responsibility, and other obvious outcomes. Remember that one
person's equity is another's inequity, so an ideal reward system should weigh inputs differently in
arriving at the proper rewards for each job.
h. Use recognitionrecognize the power of recognition. In a stagnant economy where costcutting is widespread, using recognition is a low-cost means to reward employees. And it's a
reward that most employees consider valuable.
i. Show care and concern for your employeesemployees perform better for managers who
care about them. Research done by the Gallup Organization with millions of employees and tens
of thousands of managers consistently shows this simple truth. The best organizations create
"caring" work environments. When managers care about employees, performance results
typically follow.
j. Don't ignore moneyit's easy to get so caught up in setting goals, creating interesting jobs,
and providing opportunities for participation that you forget that money is a major reason why
most people work. Thus, the allocation of performance-based wage increases, piecework
bonuses, and other pay incentives is important in determining employee motivation.
Diff: 3
Page Ref: 361-362
Topic: From Theory to Practice: Suggestions for Motivating Employees
32
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 14 Managers and Communciation
1) If a manager clearly and articulately verbalizes instructions to a subordinate, communication
can be said to have taken place.
Answer: FALSE
Diff: 2
Page Ref: 315
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
2) In the study of management, communication generally refers to interpersonal communication.
Answer: FALSE
Diff: 2
Page Ref: 315
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
3) As employees set specific goals, work toward those goals, and receive feedback on progress
toward goals, communication is required.
Answer: TRUE
Diff: 2
Page Ref: 316
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
4) The communication that takes place within groups is a fundamental mechanism by which
members share frustrations and feelings of satisfaction.
Answer: TRUE
Diff: 2
Page Ref: 316
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
5) Communication serves four major functions: control, motivation, emotional expression, and
information.
Answer: TRUE
Diff: 2
Page Ref: 316
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
6) The most important function of communication is the release for emotional expression of
feelings and for fulfillment of needs.
Answer: FALSE
Diff: 2
Page Ref: 316
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
7) The channel chosen to communicate the message cannot be affected by noise.
Answer: FALSE
Diff: 1
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
8) The communication method that conveys personal warmth the best is face-to-face
communication.
Answer: TRUE
Diff: 3
Page Ref: 318
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
9) A sender initiates a message by encoding a thought.
Answer: TRUE
Diff: 1
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
10) The final link in the communication process is a feedback loop
Answer: TRUE
Diff: 1
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
11) Formal presentations are the best communication method to use for scanability.
Answer: FALSE
Diff: 3
Page Ref: 318
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
12) Nonverbal communication is communication transmitted without words.
Answer: TRUE
Diff: 1
Page Ref: 317
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
13) The best-known types of nonverbal communication are demographics and proxemics.
Answer: FALSE
Diff: 3
Page Ref: 317
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
14) Verbal intonation refers to the emphasis someone gives to words or phrases that conveys
meaning.
Answer: TRUE
Diff: 2
Page Ref: 319
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
15) Formal communication refers to communication that follows the official chain of command
or is part of the communication required to do ones job.
Answer: TRUE
Diff: 2
Page Ref: 323
Topic: Organizational Communication
Skill: AACSB: Communication
16) Informal communication takes place when employees talk with each other in the lunchroom,
as they pass in hallways, or as they're working out at the company exercise facility.
Answer: TRUE
Diff: 2
Page Ref: 323
Topic: Organizational Communication
Skill: AACSB: Communication
17) Downward communication is communication that cuts across both work areas and
organizational levels.
Answer: FALSE
Diff: 2
Page Ref: 324
Topic: Organizational Communication
Skill: AACSB: Communication
18) In the chain network, communication flows according to the formal chain of command, both
downward and upward.
Answer: TRUE
Diff: 2
Page Ref: 325
Topic: Organizational Communication
Skill: AACSB: Communication
19) The horizontal network represents communication flowing between a clearly identifiable and
strong leader and others in a work group or team.
Answer: FALSE
Diff: 2
Page Ref: 325
Topic: Organizational Communication
Skill: AACSB: Communication
20) In the wheel network, the leader serves as the hub through which all communication passes.
Answer: TRUE
Diff: 2
Page Ref: 325
Topic: Organizational Communication
Skill: AACSB: Communication
21) Information technology has significantly improved a manager's ability to monitor individual
or team performance.
Answer: TRUE
Diff: 1
Page Ref: 326
Topic: Information Technology and Communication
Skill: AACSB: Technology
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
22) Managers at Citibank's offices throughout Malaysia used "pulse lunches" to address pressing
problems with declining customer loyalty and staff morale and increased employee turnover.
Answer: TRUE
Diff: 2
Page Ref: 328
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
23) Electronic information is not admissible in any court system.
Answer: FALSE
Diff: 2
Page Ref: 329
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Technology
24) When personal interaction isn't physically possible, real-time collaboration software may be
a better communication choice than sending an e-mail and waiting for a response.
Answer: TRUE
Diff: 2
Page Ref: 329
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
25) One customer service strategy that many service organizations use is personalization.
Answer: TRUE
Diff: 2
Page Ref: 330
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
26) The specific reason that the importance of effective communication for managers can't be
overemphasized is that ________.
A) all written communication stays within the organization
B) all verbal communications require face-to-face interaction
C) every organization uses communications
D) everything a manager does involves communicating
Answer: D
Diff: 3
Page Ref: 315
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
27) Communication is the transfer and understanding of ________.
A) ideas
B) concepts
C) meaning
D) words
Answer: C
Diff: 1
Page Ref: 315
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
4
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
28) For communication to be successful, meaning must be imparted and ________.
A) received by the other person
B) an action must be taken by the receiver
C) feedback must be established
D) understood
Answer: D
Diff: 2
Page Ref: 315
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
29) Communication between two or more people is called ________.
A) organizational communication
B) interpersonal communication
C) extrapersonal communication
D) intrapersonal communication
Answer: B
Diff: 2
Page Ref: 315
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
30) ________ consists of all the patterns, networks, and systems of communication within an
organization.
A) The grapevine
B) Interpersonal communication
C) Organizational communication
D) Open communication
Answer: C
Diff: 2
Page Ref: 315
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
31) When employees are required to communicate any job-related grievance first to their
immediate manager, to follow their job description, or to comply with company policies,
communication is being used to ________.
A) control
B) motivate
C) provide a release for emotional expression
D) provide information
Answer: A
Diff: 2
Page Ref: 316
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
32) Communication encourages ________ by clarifying to employees what is to be done, how
well they're doing, and what can be done to improve performance if it's not up to par.
A) control
B) emotional expression
C) motivation
D) the sharing of information
Answer: C
Diff: 2
Page Ref: 316
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
33) For many employees, their work group is a primary source of ________.
A) frustration
B) motivation
C) social interaction
D) stress
Answer: C
Diff: 3
Page Ref: 316
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
34) Communication provides ________ that is needed to get things done in organizations.
A) control
B) emotional expression
C) information
D) motivation
Answer: C
Diff: 3
Page Ref: 316
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
35) There are ________ elements of the communication process.
A) five
B) six
C) seven
D) nine
Answer: C
Diff: 2
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
36) During the communication process, the message is converted to a symbolic form, called
________.
A) decoding
B) encoding
C) deciphering
D) expanding
Answer: B
Diff: 2
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
37) Disturbances that interfere with the transmission, receipt, or feedback of a message are called
________.
A) feedback
B) feed forward
C) the channel
D) noise
Answer: D
Diff: 2
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
38) The process through which the symbols of a message are translated into a form that the
receiver can understand is called ________.
A) decoding
B) encoding
C) reinstating
D) expanding
Answer: A
Diff: 2
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
39) The final link in the communication process is ________.
A) encoding
B) decoding
C) feed forward
D) feedback
Answer: D
Diff: 2
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
40) Feedback returns the message to the sender and provides a check on ________.
A) how well the receiver is doing
B) the ability of the receiver to perform the task
C) whether understanding has been achieved
D) what the sender should do the next time a message is sent
Answer: C
Diff: 2
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
41) Complexity capacity refers to the degree of which the communication method ________.
A) effectively processes lengthy messages
B) makes a simple message seem more complex
C) effectively processes complex messages
D) costs
Answer: C
Diff: 2
Page Ref: 317
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
42) Which of the following describes the number of different messages that can be transmitted
using a particular method of communication?
A) complexity capacity
B) breadth potential
C) confidentiality
D) encoding ease
Answer: B
Diff: 2
Page Ref: 317
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
43) An example of nonverbal communication is ________.
A) an outline on the blackboard
B) a student with a hand raised
C) a billboard along the highway
D) a written note
Answer: B
Diff: 1
Page Ref: 317
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
8
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
44) Which form of communication are students using to tell their instructor that class is over
when they begin putting their books, notebooks, and papers away?
A) interpersonal
B) skilled
C) nonverbal
D) filtering
Answer: C
Diff: 2
Page Ref: 317
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
45) Offense could be taken by a student who just asked a question of the instructor, and the
instructor said, "What do you mean by that?" especially if the instructor used ________.
A) harsh verbal intonation
B) body intonations
C) personal feelings
D) frowns and gestures
Answer: A
Diff: 2
Page Ref: 319
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
46) All of the following are barriers to effective interpersonal communication except ________.
A) filtering
B) selective perception
C) feedback
D) defensiveness
Answer: C
Diff: 2
Page Ref: 320
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
47) ________ is the deliberate manipulation of information to make it appear more favorable to
the receiver.
A) Spin
B) Encoding
C) Fabricating
D) Filtering
Answer: D
Diff: 2
Page Ref: 319-320
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
9
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
48) When a person tells his or her manager what the manager wants to hear, that individual is
using which of the following barriers to effective interpersonal communication?
A) filtering
B) selective perception
C) feedback
D) defensiveness
Answer: A
Diff: 2
Page Ref: 319-320
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
49) The extent of filtering within an organization tends to be a function of the number of vertical
levels in the organization and the ________.
A) degree of centralization
B) organizational culture
C) degree of formalization
D) number of horizontal levels in the organization
Answer: B
Diff: 2
Page Ref: 320
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
50) Information overload occurs when ________.
A) there is too much information to work with
B) the information we've been given is too detailed
C) the information we've been given exceeds our capacity to process it
D) too much information is provided on a subject search when using a search engine
Answer: C
Diff: 2
Page Ref: 320
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
51) When people feel that they're being threatened, they tend to ________.
A) react in ways that give them control of the situation
B) to make communications impossible by using violence
C) quit their jobs
D) react in ways that reduce their ability to achieve mutual understanding
Answer: D
Diff: 2
Page Ref: 321
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
52) Jargon is ________.
A) an organizational language
B) a unique language spoken among accountants
C) specialized terminology or technical language that members of a group use to communicate
among themselves
D) a message that means the same to the receiver as it did to the sender
Answer: C
Diff: 2
Page Ref: 321
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
53) The average person must hear new information ________ times before they understand.
A) three
B) five
C) seven
D) nine
Answer: C
Diff: 3
Page Ref: 321
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
54) Communication problems are less likely to occur in organizations if the managers use
________.
A) body language
B) feedback loop
C) verbal intonation
D) filtering
Answer: B
Diff: 2
Page Ref: 321
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
55) Managers need to simplify language and ________ whom the message is directed so that the
language can be tailored to the receivers.
A) send the communication to
B) write the jargon for
C) consider the audience to
D) present it to
Answer: C
Diff: 2
Page Ref: 322
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
11
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
56) Understanding is improved by simplifying the language used in ________.
A) addition to carefully choosing the receiver
B) the message and by speaking louder
C) relation to the audience intended
D) discussions with upper managers
Answer: C
Diff: 2
Page Ref: 322
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
57) Listening is an active search for meaning, whereas ________ is passive.
A) speaking
B) encoding
C) decoding
D) hearing
Answer: D
Diff: 1
Page Ref: 322
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
58) Listening for full meaning without making premature judgments or interpretations is called
________.
A) temporary listening
B) passive listening
C) active listening
D) prevalent listening
Answer: C
Diff: 2
Page Ref: 322
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
59) The average person normally speaks at a rate of about ________ words per minute.
A) 50 to 125
B) 125 to 200
C) 200 to 350
D) 350 to 500
Answer: B
Diff: 2
Page Ref: 322
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
12
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
60) The average listener can comprehend ________ words per minute.
A) up to 400
B) 400 to 800
C) 800 to 1200
D) more than 1200
Answer: A
Diff: 2
Page Ref: 322
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
61) Active listening is enhanced by ________.
A) developing apathy with the sender
B) developing a system to minimize the noise in the area
C) paying attention to the body language of the sender
D) developing empathy with the sender
Answer: D
Diff: 2
Page Ref: 322
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
62) Knowledge management involves encouraging the members of the organization to
________.
A) improve the educational level of the average employee
B) develop new training programs to help new employees learn their jobs
C) develop a corporate university like Hamburger University at McDonald's
D) systematically gather information and share it with others
Answer: D
Diff: 2
Page Ref: 329-330
Topic: Communication Issues in Today's Organizations
63) Communication within an organization is often described as ________.
A) diagonal
B) lateral
C) formal or informal
D) vertical
Answer: C
Diff: 1
Page Ref: 323
Topic: Organizational Communication
Skill: AACSB: Communication
13
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
64) When a manager asks an employee to complete a task, he or she is communicating
________.
A) hypothetically
B) theoretically
C) informally
D) formally
Answer: D
Diff: 2
Page Ref: 323
Topic: Organizational Communication
Skill: AACSB: Communication
65) Organizational communication that is not defined by the organization's structural hierarchy is
called ________.
A) theoretical
B) hypothetical
C) informal
D) formal
Answer: C
Diff: 2
Page Ref: 323
Topic: Organizational Communication
Skill: AACSB: Communication
66) Downward communication is used to inform, direct, ________, and ________ employees.
A) enforce; control
B) coordinate; evaluate
C) discipline; reward
D) utilize; coordinate
Answer: B
Diff: 2
Page Ref: 324
Topic: Organizational Communication
Skill: AACSB: Communication
67) Lateral communication takes place among any employees ________.
A) on the same organizational level
B) in the same work group
C) within the same organization
D) assigned to the same supervisor
Answer: A
Diff: 3
Page Ref: 324
Topic: Organizational Communication
Skill: AACSB: Communication
14
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
68) Cross-functional teams rely heavily on which of the following forms of communication?
A) downward
B) upward
C) theoretical
D) lateral
Answer: D
Diff: 2
Page Ref: 324
Topic: Organizational Communication
Skill: AACSB: Communication
69) When there is an interest in the efficiency and speed of communication between managers at
different levels and in different departments, then ________.
A) upward communication works best
B) diagonal communication should be used
C) lateral communication is ideal
D) informal communication will work the fastest
Answer: B
Diff: 2
Page Ref: 324
Topic: Organizational Communication
Skill: AACSB: Communication
70) The increased use of e-mail facilitates ________ communication.
A) downward
B) upward
C) theoretical
D) diagonal
Answer: D
Diff: 2
Page Ref: 324
Topic: Organizational Communication
Skill: AACSB: Communication
71) To form communication networks, you combine ________ communication flows.
A) lateral and upward
B) lateral and downward
C) lateral and diagonal
D) vertical and horizontal
Answer: D
Diff: 3
Page Ref: 324
Topic: Organizational Communication
Skill: AACSB: Communication
15
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
72) In the all-channel network, communication flows ________.
A) between an identifiable and strong leader and others in the work group
B) in a circle until all of the members of a work group have been informed
C) freely among all members of a formal work team
D) among the managers of a functional area of an organization
Answer: C
Diff: 2
Page Ref: 325
Topic: Organizational Communication
Skill: AACSB: Communication
73) If a company is concerned with high member satisfaction, which of the following
communication networks is best?
A) chain network
B) horizontal network
C) wheel network
D) all-channel network
Answer: D
Diff: 2
Page Ref: 325
Topic: Organizational Communication
Skill: AACSB: Communication
74) An organization's grapevine works as both ________.
A) an opportunity to learn new tasks and see friends
B) a screen and mirror to turn away and send back messages
C) smoke and mirrors in dealing with difficult employee issues
D) a filter and a feedback mechanism for a manager
Answer: D
Diff: 2
Page Ref: 325
Topic: Organizational Communication
Skill: AACSB: Communication
75) Because rumors that flow along the grapevine can never be eliminated entirely, managers can
minimize the negative consequences of rumors by ________.
A) being open and disclosing any new rumors to employees
B) communicating openly, fully, and honestly with employees
C) informing their boss that the rumor is out
D) telling the employees that the rumor is not true
Answer: B
Diff: 2
Page Ref: 325
Topic: Organizational Communication
Skill: AACSB: Communication
16
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
76) Two information technology developments that seem to be driving current changes in
managerial communication are networked computer systems and ________.
A) ubiquitous computing capabilities
B) wireless capabilities
C) the WWW
D) extranets
Answer: B
Diff: 2
Page Ref: 326
Topic: Information Technology and Communication
Skill: AACSB: Technology
77) In a networked computer system, an organization links its computers together through
compatible hardware and software ________.
A) through the Internet
B) creating an organizational network
C) establishing intradepartmental networks
D) and utilizes the efficiencies of the network
Answer: B
Diff: 1
Page Ref: 326
Topic: Information Technology and Communication
Skill: AACSB: Technology
78) A(n) ________ is a location where Internet users can gain wireless access to the Internet.
A) extranet
B) intranet
C) Web conference
D) wi-fi hot spot
Answer: D
Diff: 1
Page Ref: 327
Topic: Information Technology and Communication
Skill: AACSB: Technology
79) Although the economic benefits of information technology are obvious, managers must not
forget to address the ________.
A) differences in time zones
B) psychological drawbacks
C) differences in organizational levels
D) personality differences of people
Answer: B
Diff: 2
Page Ref: 328
Topic: Information Technology and Communication
Skill: AACSB: Technology
17
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
80) Managers need to be aware of potential legal problems from inappropriate ________.
A) letters
B) e-mail usage
C) fax usage
D) voice-mail messages
Answer: B
Diff: 1
Page Ref: 329
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Technology
81) One expert suggests that electronic documents are comparable to ________.
A) DNA evidence
B) typed letters
C) books
D) a witness testimony
Answer: A
Diff: 3
Page Ref: 329
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Technology
82) Employee e-mails or blogs should not communicateinadvertently or
purposefully________.
A) legal issues of the company
B) personal information
C) proprietary information
D) a company's security details
Answer: C
Diff: 2
Page Ref: 329
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
83) Corporate computer and e-mail systems should be protected against ________ and
________.
A) blogs; wikis
B) employees; managers
C) hackers; spam
D) legal; security problems
Answer: C
Diff: 2
Page Ref: 329
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Technology
18
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
84) What can make communication even more difficult?
A) lack of personal interaction
B) legal issues
C) security issues
D) online information databases
Answer: A
Diff: 2
Page Ref: 329
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
85) What do today's managers need to do with the organization's knowledge resources?
A) learn from employees
B) make it easy for employees to communicate and share their knowledge
C) protect it from employees
D) share their knowledge with employees
Answer: B
Diff: 2
Page Ref: 329
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
86) In addition to online information databases for sharing knowledge, some knowledge
management experts suggest that organizations create ________.
A) corporate universities
B) communities of expertise
C) online communities for customers
D) communities of practice
Answer: D
Diff: 2
Page Ref: 330
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
87) Communities of practice are groups of people who share a concern, a set of problems, or a
passion about a topic, and who deepen their knowledge and expertise by ________.
A) taking professional development courses
B) going to periodic trade shows and professional conferences
C) interacting on an ongoing basis
D) attending in-house training sessions
Answer: C
Diff: 1
Page Ref: 330
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
19
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
88) To make communities of practice work, it is important to ________.
A) provide incentives for employees to participate
B) make participation for key knowledge workers mandatory
C) maintain strong interpersonal ties through effective communication
D) communicate with the community outside of the company
Answer: C
Diff: 3
Page Ref: 330
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
89) Effective communication in a customer service setting relies upon customer service
personnel recognizing the three key components in any service delivery process: ________.
A) the customer's expectations, the customer's desires, and the customer's satisfaction
B) the customer, the service organization, and the individual service provider
C) the customer's expectations, the customer's perceptions of the quality of the service, and
customer satisfaction
D) finding out the customer's needs, meeting their needs, and following up
Answer: B
Diff: 2
Page Ref: 330
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
90) ________ plays an important role in the Ritz-Carlton hotel's customer personalization
strategy.
A) Communication
B) Employee organizational commitment
C) Information technology
D) Organizational structure
Answer: A
Diff: 2
Page Ref: 330
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
91) The ability of customer service employees to listen actively and communicate effectively
goes a long way ________.
A) in whether or not the situation is resolved to the customer's satisfaction
B) toward making sure the problem doesn't happen again
C) in making sure the customer has no hard feelings toward the company
D) in determining whether the customer will return
Answer: A
Diff: 2
Page Ref: 331
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
20
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
92) Politically correct speech is something managers can't ignore; however, ________.
A) insensitivity is not a fireable offense if you do your job well at most firms
B) by eliminating words from our vocabulary, we reduce our ability to communicate
C) a few poorly chosen words by a single employee are insufficient grounds for a lawsuit against
the organization
D) some people are just overly sensitive and you can't avoid "insulting" them, no matter what
you do
Answer: B
Diff: 1
Page Ref: 331
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
Written Once, Understood Anywhere (Scenario)
Margaret works as the human resource manager for Horizon Software, Inc., a software
development firm that focuses on the development and implementation of customized JAVAbased applications for Fortune 500 companies. Unfortunately, the past few months have been
challenging because employees have become upset due to the lack of communication among
company managers. Margaret decided that it was imperative to conduct an organizational
communication workshop for these managers.
93) Margaret begins by defining communication as "________ and understanding of meaning."
A) the transfer
B) the expression
C) the broadcast
D) the extraction
Answer: A
Diff: 2
Page Ref: 315
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
94) Margaret makes a point to differentiate between interpersonal communication and
organizational communication. She explains that the concept of organizational communication
encapsulates ________.
A) patterns of communication within the organization
B) communication technology within the organization
C) the transfer of knowledge within the organization
D) advertising
Answer: A
Diff: 2
Page Ref: 315
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
21
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
95) Margaret explains that communication serves four major management functions within the
organization, namely motivation, emotional expression, information, and ________.
A) control
B) evaluation
C) feedback
D) interpersonal relations
Answer: A
Diff: 1
Page Ref: 316
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
The Memorandum (Scenario)
George Wilberson is an engineer by training and manager of a work team that consists of two
engineers, four production workers, an accountant, and a purchasing manager. They are about to
embark on a new project for their company. George has prepared a memorandum for the work
team explaining to them the objectives of the work team. Some of the production workers and
the accountant have come to see George and ask for clarification about the memorandum.
96) George held a meeting with the work team to determine what had gone wrong. It was
determined that members of the work team had many varied experiences in the company,
different technical backgrounds, and varying emotions about working on the assignment. These
differences among the work team members created ________ for George's communication.
A) encoded messages
B) noise
C) decoding
D) feedback
Answer: B
Diff: 2
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
97) The accountant, in particular, stated to George that he had difficulty understanding some of
the technical terms used in the memorandum. These technical terms are commonly known as
________.
A) encoding
B) the channel
C) noise
D) jargon
Answer: D
Diff: 1
Page Ref: 321
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
22
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
98) The team began work on the project and reported to George that they had started doing as he
had asked in the memorandum, but George noticed immediately that the work team did not
appear to be doing what he thought that they should. The work team's performance provided
George with ________.
A) noise
B) decoding
C) feedback
D) the message
Answer: C
Diff: 2
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
MargaretCommunications Expert (Scenario)
Margaret works as the human resource manager for Horizon Software, Inc., a software
development firm that focuses on the development and implementation of customized JAVAbased applications for Fortune 500 companies. Unfortunately, the past few months have been
challenging because employees have become upset due to the lack of communication among
company managers. Margaret decided that it was imperative to conduct an organizational
communication workshop for these managers.
99) Steve, a company manager attending the communication workshop, asked Margaret to
clarify the various elements of the communication process. Margaret replied that elements of the
communication process include the ________.
A) sender
B) control factors
C) facts
D) manipulation
Answer: A
Diff: 1
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
100) Margaret warned that the entire communication process is susceptible to
________disturbances that interfere with the transmission, receipt, or feedback of a message.
A) static
B) noise
C) vibration
D) flux
Answer: B
Diff: 1
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
23
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
101) At the conclusion of the communication workshop, Margaret informed the managers that
the best-known types of nonverbal communication are ________.
A) body language and proxemics
B) body intonation and demographics
C) body language and verbal intonation
D) proxemics and demographics
Answer: C
Diff: 3
Page Ref: 317, 319
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
The Sword and the Millstone (Scenario)
Sandra Millstone, the CEO of Excalibur Manufacturing Company, had concluded that the
company would have to reduce its employee group by 10 percent within the next four weeks due
to a decreased demand for the products the company manufactured. She spent over 30 hours
preparing charts, tables, graphs, diagrams, and other forms of visual aids for her presentation to
the employees about the upcoming reduction in force so that they could understand the reason
and feel better about the company.
102) When Sandra prepared the visual aids to help the employees understand and feel better
about the company, what was she doing to the message she had to deliver?
A) deliberating it
B) filtering it
C) selectively perceiving it
D) communicating it upward
Answer: B
Diff: 1
Page Ref: 319
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
103) By the time that Sandra had finished the presentation to the employees, she had spoken for
one and one-half hours, shown 14 visual aids, and no one asked a question. The employees were
probably dealing with which of the following barriers to effective communications?
A) information overload
B) selective perception
C) defensiveness
D) receiver emotions
Answer: A
Diff: 2
Page Ref: 320-321
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
24
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
104) As the employees began to leave the meeting room, some were overheard grumbling that
those at the top were just profit-rakers, that it didn't make any difference to Sandra if employees
lost their jobs, and that if the company wanted loyalty, it should hire a dog. These statements are
the result of which barrier to effective communications?
A) selective perception
B) information overload
C) defensiveness
D) downward communication
Answer: C
Diff: 2
Page Ref: 321
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
105) One employee in the finish department told her coworkers that what she heard Sandra say
was that "the company was laying off the 10 percent so that the company could boost the
dividends paid to stockholders at the end of the quarter and that the board of directors was
worried about the return on assets." These claims are most likely the result of which barrier to
effective communications?
A) information overload
B) verbal intonation
C) filtering
D) language
Answer: D
Diff: 2
Page Ref: 321
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
The Memorandum (Scenario)
George Wilberson is an engineer by training and manager of a work team that consists of two
engineers, four production workers, an accountant, and a purchasing manager. They are about to
embark on a new project for their company. George has prepared a memorandum for the work
team explaining to them the objectives of the work team. Some of the production workers and
the accountant have come to see George and ask for clarification about the memorandum.
106) When George prepared the memorandum and wrote the words on the paper, he was
involved in ________.
A) channeling the message
B) organizational communication
C) information technology
D) decoding the message
Answer: B
Diff: 2
Page Ref: 315
Topic: Organizational Communication
Skill: AACSB: Communication
25
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
"Flo" of Communication (Scenario)
Recently the employees of Chatterbox Enterprises, Inc., received a letter from the vice president
of operations explaining that a new production facility would be built in Chatland City, AL. It
was also stated that about one-fourth of the employees from the current Chatland City facility
would be transferred to the new facility and if employees wanted to volunteer for the transfer,
they could do so by going to the human resource office and filling out a request form. Sam, a
production supervisor, first went to Florence, the purchasing manager, who had already
volunteered to transfer, to discuss with her the possibility of becoming her inventory control
supervisor at the new facility. Florence told Sam that Ruth, the current inventory control
supervisor, would not be transferring and that she would consider his request.
107) The letter from the vice president to the employees is an example of which type of
organizational communication?
A) horizontal
B) formal
C) lateral
D) informal
Answer: B
Diff: 1
Page Ref: 323
Topic: Organizational Communication
Skill: AACSB: Communication
108) When Sam went to the Human Resource office and applied for transfer to the new facility,
he was participating in which type of organizational communication?
A) formal
B) downward
C) diagonal
D) lateral
Answer: A
Diff: 2
Page Ref: 323
Topic: Organizational Communication
Skill: AACSB: Communication
109) If Sam had talked with his co supervisors prior to going to talk with Florence, he would
have been involved in which type of organizational communication?
A) formal
B) internal
C) lateral
D) downward
Answer: C
Diff: 1
Page Ref: 324
Topic: Organizational Communication
Skill: AACSB: Communication
26
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
110) When Sam went and talked with Florence, he was involved in which type of organizational
communication?
A) diagonal
B) upward
C) horizontal
D) lateral
Answer: A
Diff: 2
Page Ref: 324
Topic: Organizational Communication
Skill: AACSB: Communication
Types of Communication Networks (Scenario)
Rick Smith is a regional sales manager for a health care information technology firm called
MediFax, based in Nashville, TN. Rick is responsible for overseeing 15 salespeople covering
over 20 states spanning the mid-South to the Northeast. When the company was smaller and
there were fewer salespeople, communication flowed freely from the field back into all areas of
the home officecustomer service, development, accounting and finance, and top management.
However, as the company has grown, its structure has become more mechanistic. Management
demanded that communications to and from the field flow according to the formal chain of
command. As a result, the firm has been slower to recognize shifts in the market and respond to
important market-based information delivered by the sales force. As a result, salespeople have
become more reluctant to forward information to the home office because they perceive that it
won't be acted upon anyway. The management team has asked Rick to review this issue and
provide recommendations for improving this situation.
111) In times past, information flowed freely from the sales force to all areas of the home office.
This is most representative of what kind of communications network?
A) wheel network
B) chain network
C) all-channel network
D) informal network
Answer: C
Diff: 2
Page Ref: 325
Topic: Organizational Communication
Skill: AACSB: Communication
112) Once the company grew and became more mechanistic, management insisted that
information flow vertically according to the authority structure. This is most representative of
what kind of communications network?
A) wheel network
B) chain network
C) all-channel network
D) formal network
Answer: B
Diff: 2
Page Ref: 325
Topic: Organizational Communication
Skill: AACSB: Communication
27
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
113) Rick believes that it might be more effective if incoming market-based information and
outgoing response and direction were to flow through a central figure, the regional sales manager
for each region. This would be most representative of what kind of communications network?
A) wheel network
B) chain network
C) all-channel network
D) informal network
Answer: A
Diff: 2
Page Ref: 325
Topic: Organizational Communication
Skill: AACSB: Communication
Paul Locke (Scenario)
Paul Locke is a chemical engineer and research lab manager for the U.S. Navy's munitions
research facility in suburban Washington, D.C.
114) Paul has been charged with overseeing the development of a master library of samples
linked to a database that explains their properties and manufacturing processes. Once completed,
this database will be made available to fellow employees via a secure intranet, making it easier
for employees to communicate, collaborate, and learn from each other. This project could be
generally categorized as ________.
A) a waste of taxpayer dollars
B) a knowledge management initiative
C) organizational learning
D) theory in use
Answer: B
Diff: 3
Page Ref: 329
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
115) It is budget cutting season in Washington and the director of the research facility is
concerned for the future. In a brainstorming session, he asks his managers how they might better
pool the expertise, knowledge, and passion of base personnel who are involved with naval
munitions in order to create a more effective organization. Paul responds that many firms in
private industry have created ________ in order to deepen the knowledge and expertise of
employees by interacting on an ongoing basis.
A) communities of knowledge
B) communities of learning
C) communities of practice
D) best practice communities
Answer: C
Diff: 1
Page Ref: 330
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
28
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
116) Paul realizes that interactive web sites, e-mail, and videoconferencing are essential
communication tools but can create the same communication problems that individuals face such
as:
A) over-documentation
B) feedback
C) active listening
D) non-verbal communication
Answer: A
Diff: 1
Page Ref: 330
Topic: Communication Issues in Today's Organizations
117) In a short essay, explain why communication is important to managers and organizations.
What four functions does it serve?
Answer: Communication serves four major functions: control, motivation, emotional
expression, and information. Communication acts to control employee behavior in several ways.
Organizations have authority hierarchies and formal guidelines that employees are expected to
follow. For instance, when employees are required to communicate any job-related grievance
first to their immediate manager, to follow their job description, or to comply with company
policies, communication is being used to control. But informal communication also controls
behavior. When work groups tease a member who's working too hard or producing too much
(making the rest of the group look bad), they're informally controlling the member's behavior.
Communication encourages motivation by clarifying to employees what is to be done, how well
they're doing, and what can be done to improve performance if it's not up to par. As employees
set specific goals, work toward those goals, and receive feedback on progress toward goals,
communication is required. For many employees, their work group is a primary source of social
interaction. The communication that takes place within the group is a fundamental mechanism by
which members share frustrations and feelings of satisfaction. Communication, therefore,
provides a release for emotional expression of feelings and for fulfillment of social needs.
Finally, individuals and groups need information to get things done in organizations.
Communication provides that information. No one of these four functions is more important
than the others. For groups to work effectively, they need to maintain some form of control over
members, motivate members to perform, provide a means for emotional expression, and make
decisions. You can assume that almost every communication interaction that takes place in a
group or organization is fulfilling one or more of these four functions.
Diff: 2
Page Ref: 315-316
Topic: The Nature and Function of Communication
Skill: AACSB: Communication
29
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
118) In a short essay, list the seven elements of the communication process and explain the
process of interpersonal communication.
Answer: The seven elements of the communication process are: (1) the communication source,
(2) the message, (3) encoding, (4) the channel, (5) decoding, (6) the receiver, and (7) feedback.
Before communication can take place, a purpose, expressed as a message to be conveyed, must
exist. It passes between a source (the sender) and a receiver. The message is converted to a
symbolic form (called encoding) and passed by way of some medium (channel) to the receiver,
who retranslates the sender's message (called decoding). The result is the transfer of meaning
from one person to another. In addition, note that the entire process is susceptible to
noisedisturbances that interfere with the transmission, receipt, or feedback of a message.
Typical examples of noise include illegible print, phone static, inattention by the receiver, or
background sounds of machinery or coworkers. Anything that interferes with understanding can
be noise, and noise can create distortion at any point in the communication process.
Diff: 2
Page Ref: 316
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
119) In a short essay, discuss the two best-known types of nonverbal communication. Include a
specific example of each type of nonverbal communication to support your answer.
Answer: Body language refers to gestures, facial expressions, and other body movements that
convey meaning. A person frowning "says" something different from one who's smiling. Hand
motions, facial expressions, and other gestures can communicate emotions or temperaments such
as aggression, fear, shyness, arrogance, joy, and anger. Verbal intonation refers to the emphasis
someone gives to words or phrases that conveys meaning. To illustrate how intonations can
change the meaning of a message, consider the student who asks the instructor a question. The
instructor replies, "What do you mean by that?" The student's reaction will vary, depending on
the tone of the instructor's response. A soft, smooth vocal tone conveys interest and creates a
different meaning from one that is abrasive and puts a strong emphasis on saying the last word.
Diff: 1
Page Ref: 317-318
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
30
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
120) In a short essay, list and discuss four of the six barriers to effective communication that
managers face. Include a specific example of each barrier to support your answer.
Answer: a. Filteringthe deliberate manipulation of information to make it appear more
favorable to the receiver. For example, when a person tells his or her manager what the manager
wants to hear, that individual is filtering information. The extent of filtering tends to be a
function of the number of vertical levels in the organization and the organizational culture. The
more vertical levels there are in an organization, the more opportunities there are for filtering.
b. Emotionshow a receiver feels when a message is received influences how he or she
interprets it. Extreme emotions are most likely to hinder effective communication. In such
instances, people often disregard rational and objective thinking processes and substitute
emotional judgments.
c. Information overloadoccurs when the amount of information a person is required to work
with exceeds that individual's processing capacity. What happens when individuals have more
information than they can sort or use? They tend to select out, ignore, pass over, or forget
information. Or, they may put off further processing until the overload situation is over.
d. Defensivenesswhen people feel that they're being threatened, they tend to react in ways that
reduce their ability to achieve mutual understanding. That is, they become defensive–engaging in
behaviors such as verbally attacking others, making sarcastic remarks, being overly judgmental,
and questioning others' motives.
e. Languagewords mean different things to different people. Age, education, and cultural
background are three of the more obvious variables that influence the language a person uses and
the definitions he or she gives to words. People may speak the same language, but use of that
language is far from uniform. Senders tend to assume that the words and phrases they use mean
the same to the receiver as they do to them. This is incorrect and creates communication barriers.
f. National cultureinterpersonal communication isn't conducted in the same way around the
world. In the United States, communication patterns tend to be individual oriented and clearly
spelled out. U.S. managers rely heavily on memoranda, announcements, position papers, and
other formal forms of communication to state their positions on issues. In collectivist countries,
such as Japan, there's more interaction for its own sake and a more informal manner of
interpersonal contact.
Diff: 3
Page Ref: 319-321
Topic: Methods of Interpersonal Communication
Skill: AACSB: Communication
121) In a short essay, list and briefly describe three common communication networks, or
patterns of communication, that emerge in organizations. Is any one network preferable to
others? If so, why. If not, what factors influence which network is best for a particular situation.
Answer: a. Chain networkcommunication flows according to the formal chain of command,
both downward and upward. If accuracy is important, the chain network works well.
b. Wheel networkcommunication flows between a clearly identifiable and strong leader and
others in a work group or team. The leader serves as a hub through which communication passes.
If having a strong, identifiable leader is important to the organization or work unit, the wheel
network is the best communication network. Accuracy is also very high with the wheel network.
c. All-channel networkcommunication flows freely among all members of a work team. If
high member satisfaction is a concern, the all channel network is preferable.
Diff: 1
Page Ref: 325
Topic: Organizational Communication
Skill: AACSB: Communication
31
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
122) In a short essay, explain two main communication challenges that new technology has
created.
Answer: Managers are learning, the hard way sometimes, that all this new technology has
created special communication challenges. The two main ones are (1) legal and security issues
and (2) lack of personal interaction. Although email is a quick and easy way to communicate,
managers need to be aware of potential legal problems from inappropriate e-mail usage.
Electronic information is potentially admissible in court. Says one expert, "Today, email and
instant messaging are the electronic equivalent of DNA evidence." But e-mail's legal problems
aren't the only issue facing managers. Security concerns are another. Managers need to ensure
that confidential information is kept confidential. Employee e-mails and blogs should not
communicateinadvertently or purposelyproprietary information. Corporate computer and email systems should be protected against hackers (people who try to gain unauthorized access to
computer systems) and spam (electronic junk mail). These are serious issues that managers and
organizations must address if the benefits that communication technology offers are to be
realized. Another communication challenge posed by the Internet age we live and work in is the
lack of personal interaction. Even when two people are communicating face-to-face,
understanding is not always achieved. However, when communication takes place in a virtual
environment, it can be really hard to achieve understanding and collaborate on getting work
done. Some companies have gone so far as to ban e-mail on certain days of the week. Others
have simply encouraged employees to collaborate more in person. Yet, there are situations and
times when personal interaction isn't physically possibleyour colleagues work across the
continent or even across the globe. In those instances, real-time collaboration software (such as
private workplace wikis, blogs, instant messengers, and other types of groupware) may be a
better communication choice than sending an e-mail and waiting for a response.
Diff: 3
Page Ref: 329
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Technology
123) In a short essay, define the term "community of practice." What are some key concepts for
organizations seeking to build a strong community of practice?
Answer: Communities of practice are groups of people who share a concern, a set of problems,
or a passion about a topic, and who deepen their knowledge and expertise in that area by
interacting on an ongoing basis. Keys to this concept include meeting on a regular basis and
using information exchanged to improve the organization in some way. Maintaining strong
human interaction through communication tools such as interactive Web sites, message boards,
chat rooms, e-mail, and videoconferencing is essential. Additionally, these groups will face the
same barriers to effective communication that offline groups face. Therefore, differences can be
resolved in similar fashion as in face-to-face conflicts, that is, through techniques such as
feedback, simple language, active listening, constraining emotions, and watching for nonverbal
cues.
Diff: 3
Page Ref: 330
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
32
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
124) In a short essay, explain the importance of communication in regards to how it can have a
significant impact on a customer's satisfaction with the service and the likelihood of being a
repeat customer.
Answer: Managers in service organizations need to make sure that employees who interact with
customers are communicating appropriately and effectively with those customers. How? By first
recognizing the three components in any service delivery process: the customer, the service
organization, and the individual service provider. Each plays a role in whether communication is
working. Obviously, managers don't have a lot of control over what or how the customer
communicates,
but they can influence the other two.
Diff: 2
Page Ref: 330-331
Topic: Communication Issues in Today's Organizations
Skill: AACSB: Communication
33
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Management, 10e (Robbins)
Chapter 12 Managing Change and Innovation
1) The change in demand for health care technicians is an example of an economic change.
Answer: FALSE
Diff: 3
Page Ref: 259
Topic: The Change Process
2) The "calm waters" metaphor of change is consistent with Lewin's concept of unfreezing,
changing, and refreezing.
Answer: TRUE
Diff: 3
Page Ref: 259
Topic: The Change Process
3) In the "white-water rapids" metaphor of change, managers should expect change at any time,
and it may last for unspecified lengths of time.
Answer: TRUE
Diff: 2
Page Ref: 260
Topic: The Change Process
4) Organizational change can be any alterations in people, structure, or technology.
Answer: TRUE
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
5) Any manager can be a change agent.
Answer: TRUE
Diff: 2
Page Ref: 261
Topic: Types of Organizational Change
6) Changing structure includes any change in structural variables such as reporting relationships,
coordination mechanisms, employee empowerment, or job redesign.
Answer: TRUE
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
7) Computerization is a technological change that replaces people with machines.
Answer: FALSE
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
Skill: AACSB: Technology
8) Competitive factors or new innovations within an industry often require managers to introduce
new equipment, tools, or operating methods.
Answer: TRUE
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
9) Probably the most visible technology changes in recent years have come through managers'
efforts to expand corporate financing.
Answer: FALSE
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
Skill: AACSB: Technology
10) Managers used different OD techniques during the strategic change including team building,
survey feedback, and intergroup development.
Answer: TRUE
Diff: 2
Page Ref: 263
Topic: Types of Organizational Change
11) Sensitivity training is a method of changing behavior through unstructured group interaction.
Answer: TRUE
Diff: 1
Page Ref: 263
Topic: Types of Organizational Change
12) Change threatens the investment you've already made in the status quo.
Answer: TRUE
Diff: 1
Page Ref: 264
Topic: Managing Resistance to Change
13) One reason people resist change is that it substitutes ambiguity for uncertainty.
Answer: FALSE
Diff: 3
Page Ref: 264
Topic: Managing Resistance to Change
14) One reason people resist change is the belief that the change is incompatible with the goals
and interests of the organization.
Answer: TRUE
Diff: 3
Page Ref: 265
Topic: Managing Resistance to Change
15) Negotiation refers to covert attempts to influence, twisting and distorting facts, or
withholding information.
Answer: FALSE
Diff: 2
Page Ref: 265
Topic: Managing Resistance to Change
16) Cooperation refers to covert attempts to influence.
Answer: FALSE
Diff: 2
Page Ref: 265
Topic: Managing Resistance to Change
17) Manipulation is the use of direct threats.
Answer: FALSE
Diff: 2
Page Ref: 265
Topic: Managing Resistance to Change
2
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
18) A major disadvantage of coercion is that it is may be illegal.
Answer: TRUE
Diff: 2
Page Ref: 265
Topic: Managing Resistance to Change
19) Cultural change is easier when the organizational culture is strong.
Answer: FALSE
Diff: 1
Page Ref: 266
Topic: Managing Resistance to Change
20) A leadership change can facilitate cultural change.
Answer: TRUE
Diff: 2
Page Ref: 266
Topic: Managing Resistance to Change
21) Cultural change is likely to take place when a dramatic crisis occurs.
Answer: TRUE
Diff: 2
Page Ref: 266
Topic: Managing Resistance to Change
22) The number of employees experiencing job stress in the United States ranges anywhere from
40 to 80 percent.
Answer: TRUE
Diff: 3
Page Ref: 267
Topic: Managing Resistance to Change
23) Stress is the physical and psychological tension an individual feels when he or she is facing
or experiencing extraordinary demands, constraints, or opportunities for which the outcome is
perceived to be both uncertain and important.
Answer: TRUE
Diff: 2
Page Ref: 267
Topic: Contemporary Issues in Managing Change
24) Stress can be caused by personal factors and by job-related factors.
Answer: TRUE
Diff: 2
Page Ref: 268
Topic: Contemporary Issues in Managing Change
25) Stress symptoms can be grouped under three general categories: physical, psychological, and
behavioral.
Answer: TRUE
Diff: 2
Page Ref: 268
Topic: Contemporary Issues in Managing Change
3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
26) In terms of organizational factors, any attempt to lower stress levels has to begin with
employee selection.
Answer: TRUE
Diff: 2
Page Ref: 268
Topic: Contemporary Issues in Managing Change
27) A realistic job preview during the selection process can minimize stress by reducing
ambiguity over job expectations.
Answer: TRUE
Diff: 2
Page Ref: 268
Topic: Contemporary Issues in Managing Change
28) Having creative people is not enough to get innovative products and work methods.
Answer: TRUE
Diff: 2
Page Ref: 271
Topic: Stimulating Innovation
29) Managing change is an integral part of ________.
A) top management's job
B) middle-level management's job
C) the first-line manager's job
D) every manager's job
Answer: D
Diff: 2
Page Ref: 261
Topic: Types of Organizational Change
30) The Sarbanes-Oxley Act is an example of which of the following forms of environmental
change?
A) internal
B) technology
C) government laws and regulations
D) labor markets
Answer: C
Diff: 2
Page Ref: 259
Topic: The Change Process
31) Assembly-line technology is changing dramatically as organizations ________.
A) develop new products for the market
B) replace human labor with robots
C) replace old manually controlled machines with newer machines
D) find new markets for their products
Answer: B
Diff: 2
Page Ref: 262
Topic: The Change Process
Skill: AACSB: Technology
4
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
32) Changing human resource management activities to attract and retain health care specialists
due to increased needs for those workers is an example of what kind of environmental change
factor?
A) marketplace
B) technology
C) labor markets
D) economic
Answer: C
Diff: 3
Page Ref: 259
Topic: The Change Process
33) Falling interest rates are an example of what external force?
A) marketplace
B) government laws and regulations
C) labor markets
D) economic changes
Answer: D
Diff: 1
Page Ref: 259
Topic: The Change Process
34) Which of the following is not an internal force of change?
A) technology
B) strategy
C) workforce
D) employee attitudes
Answer: A
Diff: 2
Page Ref: 259
Topic: The Change Process
35) Which of the following is not an external force of change?
A) marketplace
B) government laws and regulations
C) economic changes
D) workforce
Answer: D
Diff: 2
Page Ref: 259
Topic: The Change Process
36) Internal forces that stimulate the need for change tend to originate primarily from the impact
of external forces or from ________.
A) the forces of competition
B) change in technology
C) customer demand for the products the company produces
D) the internal operations of the organization
Answer: D
Diff: 2
Page Ref: 259
Topic: The Change Process
5
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
37) Increasing the numbers of employed women and minorities forces managers to pay attention
to what change factor?
A) strategy
B) workforce
C) equipment
D) technology
Answer: B
Diff: 2
Page Ref: 259
Topic: The Change Process
Skill: AACSB: Multicultural and Diversity
38) Labor strikes are an example of what change factor that may encourage a change in
management thinking and practices?
A) workforce
B) equipment
C) employee attitudes
D) strategy
Answer: C
Diff: 1
Page Ref: 259
Topic: The Change Process
39) One of the primary views of the change process is ________, while the other view is
________.
A) problematic; encouraged
B) occasional; continuous
C) costly; conservative
D) optimistic; pessimistic
Answer: B
Diff: 3
Page Ref: 259
Topic: The Change Process
40) Lewin's theory is consistent with which view of organizational change?
A) continuous
B) contemporary
C) Mayo's
D) "calm waters"
Answer: D
Diff: 2
Page Ref: 259
Topic: The Change Process
41) According to Kurt Lewin, which of the following is not a stage in the change process?
A) unfreezing
B) changing
C) refreezing
D) restraining
Answer: D
Diff: 2
Page Ref: 259
Topic: The Change Process
6
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
42) According to Kurt Lewin, increasing the driving forces, which direct behavior away from the
status quo, is a means of doing which of the following?
A) unfreezing
B) changing
C) restraining forces
D) refreezing
Answer: A
Diff: 2
Page Ref: 259
Topic: The Change Process
43) The unfreezing step of the change process can be thought of as ________.
A) thawing the organization loose from the current status to the new status
B) making the move to the new organizational condition
C) loosening the organization from the old condition and moving it to the new condition
D) preparing for the needed change
Answer: D
Diff: 2
Page Ref: 260
Topic: The Change Process
44) According to Lewin, which of the following is the objective of refreezing?
A) directs behavior away from the status quo
B) hinders movement away from existing equilibrium
C) eliminates the need for future change
D) stabilizes the new situation
Answer: D
Diff: 2
Page Ref: 260
Topic: The Change Process
45) The ________ is consistent with uncertain and dynamic environments.
A) calm waters metaphor
B) white-water rapids metaphor
C) contemporary metaphor
D) continuous metaphor
Answer: B
Diff: 2
Page Ref: 260
Topic: The Change Process
46) In the white-water rapids metaphor, change is a natural state, and managing change is
________.
A) an accepted practice
B) an expected practice
C) a continual process
D) a maintenance process
Answer: C
Diff: 2
Page Ref: 260
Topic: The Change Process
7
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
47) What is an emerging and evolving consumer trend that Hallmark identified?
A) future perfect
B) chariness
C) from me to we
D) happening
Answer: C
Diff: 3
Page Ref: 261
Topic: Types of Organizational Change
48) Organizational change is classified as ________.
A) people, structure, or technology
B) structure, management, goals
C) technology, goals, management
D) rules, procedures, management
Answer: A
Diff: 3
Page Ref: 261-262
Topic: Types of Organizational Change
49) In organizations, people who act as catalysts and assume the responsibility for managing the
change process are called ________.
A) change masters
B) change agents
C) operations managers
D) charismatic leaders
Answer: B
Diff: 2
Page Ref: 261
Topic: Types of Organizational Change
50) In spurring organizational change, outside consultants are usually more ________, whereas
internal managers may be more ________.
A) drastic; thoughtful
B) highly paid; risky
C) resistant; bold
D) cautious; friendly
Answer: A
Diff: 2
Page Ref: 261
Topic: Types of Organizational Change
51) Structural changes include ________.
A) span of control
B) work processes
C) attitudes
D) behavior
Answer: A
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
8
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
52) As change agents, managers should be motivated to initiate change because they are
committed to ________.
A) promoting the welfare of their employees
B) managing and want to do the best they can for everyone
C) improving their organization's performance
D) meeting the competition head-on in the market
Answer: C
Diff: 3
Page Ref: 261
Topic: Types of Organizational Change
53) Initiating change involves identifying which organizational areas might need to be changed
and ________.
A) discussing them with the board of directors
B) hiring a consultant to confirm that the change is needed
C) forming a committee to determine that the need for change is real
D) putting the change process in motion
Answer: D
Diff: 1
Page Ref: 261
Topic: Types of Organizational Change
54) Managers' options for change essentially fall into what three categories?
A) environment, technology, and mission
B) structure, technology, and people
C) mission, structure, and people
D) mission, environment, and process
Answer: B
Diff: 3
Page Ref: 262
Topic: Types of Organizational Change
55) Which category of change involves work processes, methods, and equipment?
A) technology
B) people
C) competitors
D) structure
Answer: A
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
Skill: AACSB: Technology
56) A company that decides to decentralize its sales procedures is managing what change
category?
A) technology
B) people
C) competitors
D) structure
Answer: D
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
9
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
57) Which type of change might include a shift from a functional to a product structure?
A) a structural design change
B) a structural component change
C) automation
D) computerization
Answer: A
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
58) Competitive factors or new innovations within an industry often require managers to
introduce all of the following except new ________.
A) equipment
B) tools
C) operating methods
D) employees
Answer: D
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
59) When grocery stores installed scanners to read the product price, this was an example of
managing which change category?
A) technology
B) people
C) competitors
D) structure
Answer: A
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
Skill: AACSB: Technology
60) Techniques to change people and the quality of interpersonal work relationships are termed
________.
A) operations
B) organizational development
C) downsizing
D) robotics
Answer: B
Diff: 2
Page Ref: 263
Topic: Types of Organizational Change
61) If Kraft Foods hired a consultant to decrease group friction and enhance cooperative work
relationships, this would be an example of managing which change category?
A) technology
B) people
C) competitors
D) structure
Answer: B
Diff: 3
Page Ref: 263
Topic: Types of Organizational Change
10
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
62) Which organizational development (OD) technique is a technique for assessing attitudes and
perceptions, identifying discrepancies in these, and resolving the differences by using survey
information in feedback groups?
A) team building
B) intergroup development
C) survey feedback
D) sensitivity training
Answer: C
Diff: 1
Page Ref: 263
Topic: Types of Organizational Change
63) What OD technique involves changing the attitudes, stereotypes, and perceptions that work
groups have about each other?
A) team building
B) intergroup development
C) survey feedback
D) sensitivity training
Answer: B
Diff: 1
Page Ref: 263
Topic: Types of Organizational Change
64) Before using the same OD techniques to implement behavioral changes, especially across
different countries, managers need to be sure that they've taken into account ________.
A) cultural characteristics
B) organizational differences
C) employee attitudes
D) societal differences
Answer: A
Diff: 3
Page Ref: 264
Topic: Types of Organizational Change
Skill: AACSB: Globalizations
65) An individual is likely to resist change because of all of the following reasons except
________.
A) uncertainty
B) increased productivity
C) concern over personal loss
D) belief that the change is not in the organization's best interest
Answer: B
Diff: 1
Page Ref: 264
Topic: Types of Organizational Change
11
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
66) To cope with the complexity of life, individuals rely on habits or ________.
A) programmed responses
B) the status quo
C) beliefs
D) certainties
Answer: A
Diff: 3
Page Ref: 264
Topic: Types of Organizational Change
67) Which of the reasons for resistance to change expressed by an employee may be beneficial to
the organization?
A) uncertainty
B) freezing
C) change is incompatible with the interests of the organization
D) refreezing
Answer: C
Diff: 3
Page Ref: 265
Topic: Types of Organizational Change
68) All of the following are mentioned as actions that managers can use to deal with resistance to
change except ________.
A) education and communication
B) diversification
C) participation
D) facilitation and support
Answer: B
Diff: 2
Page Ref: 265
Topic: Types of Organizational Change
69) For ________ to be effective, there must be mutual trust and credibility between managers
and employees.
A) education
B) coercion
C) negotiation
D) participation
Answer: A
Diff: 2
Page Ref: 265
Topic: Types of Organizational Change
70) ________ is using direct threats or force on those who resist change.
A) Negotiation
B) Coercion
C) Cooptation
D) Education and communication
Answer: B
Diff: 2
Page Ref: 265
Topic: Types of Organizational Change
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71) Which of the following represents the relationship between organizational culture and
change?
A) Culture and change are naturally compatible.
B) Culture tends to be very resistant to change.
C) Culture can change in months but not weeks.
D) Culture can never be purposely changed.
Answer: B
Diff: 2
Page Ref: 266
Topic: Contemporary Issues in Managing Change
72) Which of the following is not a favorable situational condition that may facilitate change in
an organizational culture?
A) a dramatic crisis occurs
B) the culture is weak
C) stock prices remain constant
D) the organization is young and small
Answer: C
Diff: 2
Page Ref: 266
Topic: Contemporary Issues in Managing Change
73) Cultural change is most likely to take place when ________.
A) the organization is old
B) the organization is large
C) the culture is strong
D) there is a leadership change
Answer: D
Diff: 2
Page Ref: 266
Topic: Contemporary Issues in Managing Change
74) What is a strategy for managing cultural change?
A) Support employees who remain devoted to the old values.
B) Redesign socialization processes to align with the new values.
C) Keep the reward system the same.
D) Terminate top managers who are positive role models.
Answer: B
Diff: 2
Page Ref: 266
Topic: Contemporary Issues in Managing Change
75) A dynamic and uncertain organizational environment has created a large number of
employees who are ________.
A) old enough to retire, but can't afford to retire
B) young and energetic about the "next day's work"
C) overworked and stressed out
D) overworked, but paid very well
Answer: C
Diff: 1
Page Ref: 267
Topic: Contemporary Issues in Managing Change
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76) ________ is the adverse reaction people have to excessive pressure placed on them from
extraordinary demands, constraints, or opportunities.
A) Stereotyping
B) Stress
C) A halo effect
D) Creativity
Answer: B
Diff: 2
Page Ref: 267
Topic: Contemporary Issues in Managing Change
77) Stress, in and of itself, is ________.
A) not necessarily bad
B) healthy in most cases
C) harmful, especially if not managed by exercise
D) beneficial to those who use it
Answer: A
Diff: 2
Page Ref: 267
Topic: Contemporary Issues in Managing Change
78) ________ prevent you from doing what you desire; ________ refer to the loss of something
desired.
A) Constraints; demands
B) Demands; constraints
C) Fears; stressors
D) Stressors; fears
Answer: A
Diff: 2
Page Ref: 267
Topic: Contemporary Issues in Managing Change
79) Which of the following is true concerning stress?
A) Stress is a static condition.
B) Stress is a negative reaction to an outside force.
C) Stress can be caused by change of any kind.
D) Stress limits performance.
Answer: C
Diff: 2
Page Ref: 267
Topic: Contemporary Issues in Managing Change
80) ________ there must be uncertainty over the outcome, and the outcome must be important.
A) For uncertainty to become fear,
B) For anxiety to become stress,
C) For potential stress to become actual stress,
D) For anxiety to become fear,
Answer: C
Diff: 3
Page Ref: 268
Topic: Contemporary Issues in Managing Change
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81) Stress symptoms can be grouped under any of the following three general categories except
________.
A) physiological
B) cultural
C) psychological
D) behavioral
Answer: B
Diff: 2
Page Ref: 268
Topic: Contemporary Issues in Managing Change
82) Which of the following is an example of a psychological symptom of stress?
A) changes in metabolism
B) increased heart and breathing rate
C) irritability
D) changes in productivity
Answer: C
Diff: 2
Page Ref: 268
Topic: Contemporary Issues in Managing Change
83) Changes in eating habits are a ________ symptom of stress.
A) physical
B) psychological
C) behavioral
D) inertial
Answer: C
Diff: 1
Page Ref: 268
Topic: Contemporary Issues in Managing Change
84) Managers need to make sure that employees' abilities ________.
A) match the job requirements
B) are being maximized
C) are not being affected by their stress
D) are not causing them stress
Answer: A
Diff: 3
Page Ref: 268
Topic: Contemporary Issues in Managing Change
85) ________ that increase opportunities for employees to participate in decisions and to gain
social support have been found to lessen stress.
A) Improved organizational communications
B) Time management programs
C) Wellness programs
D) Job redesigns
Answer: D
Diff: 2
Page Ref: 268
Topic: Contemporary Issues in Managing Change
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86) Stress from an employee's personal life ________.
A) is difficult for the manager to control directly
B) should never concern the manager
C) indicates that the employee needs counseling
D) always affects work behavior, so the manager should always intervene
Answer: A
Diff: 2
Page Ref: 269
Topic: Contemporary Issues in Managing Change
87) Managers might want to offer ________ to employees who want to talk to someone about
their problems.
A) wellness programs
B) time management programs
C) employee counseling
D) performance planning programs
Answer: C
Diff: 2
Page Ref: 268
Topic: Contemporary Issues in Managing Change
88) How can managers increase the likelihood of making change happen successfully?
A) focus on how they want to change the organization
B) understand the difficult task at hand
C) increase the role of individual employees
D) observe how competitors are changing
Answer: C
Diff: 2
Page Ref: 269
Topic: Contemporary Issues in Managing Change
89) What is a characteristic of a change-capable organization?
A) separates the present and the future
B) makes controlling a way of life
C) discourages mavericks
D) shelters breakthroughs
Answer: D
Diff: 2
Page Ref: 270
Topic: Contemporary Issues in Managing Change
90) A study of organizational change found that ________ percent of changes at the work-group
level were reactions to a specific, current problem or to a suggestion from someone outside the
work group; and ________ percent of those changes occurred in the course of employees' dayto-day work.
A) 77; 68
B) 35; 90
C) 90; 35
D) 68; 77
Answer: A
Diff: 3
Page Ref: 270
Topic: Contemporary Issues in Managing Change
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91) Managing in the dynamic, chaotic world of global competition, organizations must create
new products and services, ________.
A) at competitive prices and in the correct location
B) and adopt teams as the best way to improve the organization
C) and adopt state-of-the-art technology if they are to compete successfully
D) that offer the customer what they want
Answer: C
Diff: 2
Page Ref: 271
Topic: Stimulating Innovation
Skill: AACSB: Technology
92) ________ refers to the ability to combine ideas in a unique way or to make unusual
associations between ideas.
A) Innovation
B) Imagination
C) Creativity
D) Interpretive thinking
Answer: C
Diff: 2
Page Ref: 271
Topic: Stimulating Innovation
93) ________ is the process of taking a creative idea and turning it into a useful product, service,
or method of operation.
A) Innovation
B) Imagination
C) Creativity
D) Interpretive thinking
Answer: A
Diff: 2
Page Ref: 271
Topic: Stimulating Innovation
94) Research into the effect of structural variables on innovation shows that ________.
A) organic structures negatively influence innovation
B) the easy availability of plentiful resources provides a key building block for innovation
C) frequent interunit communication helps create barriers to innovation
D) time pressures actually cause people to be more creative
Answer: B
Diff: 2
Page Ref: 272
Topic: Stimulating Innovation
95) Which of the following is an example of a variable that can foster innovation?
A) mechanistic structure
B) organic structure
C) few organizational resources
D) acceptance of ambiguity
Answer: B
Diff: 3
Page Ref: 272
Topic: Stimulating Innovation
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96) Which of the following is not a cultural variable that supports innovation?
A) acceptance of ambiguity
B) tolerance for the impractical
C) high external controls
D) focus on ends, not means
Answer: C
Diff: 2
Page Ref: 272
Topic: Stimulating Innovation
97) An innovative culture is likely to have ________.
A) high external controls
B) low tolerance for risk
C) closed-system focus
D) tolerance of conflict
Answer: D
Diff: 1
Page Ref: 272
Topic: Stimulating Innovation
98) Which of the following human resource variables is supportive of organizational innovation?
A) low commitment to training
B) selection of Type A employees
C) high job security
D) unionization
Answer: C
Diff: 2
Page Ref: 272
Topic: Stimulating Innovation
99) ________ actively and enthusiastically support new ideas, build support, overcome
resistance, and ensure that innovations are implemented.
A) Idea champions
B) Whistleblowers
C) Idea generators
D) Idea screeners
Answer: A
Diff: 2
Page Ref: 273
Topic: Stimulating Innovation
100) All of the following are common personality characteristics of idea champions except
________.
A) extremely high self-confidence
B) persistence
C) energy
D) risk aversion
Answer: D
Diff: 2
Page Ref: 273
Topic: Stimulating Innovation
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New Ideas (Scenario)
Although New Ideas, Inc., has been in business for 30 years, the company and its employees
seemingly have been in a constant state of change. Louis Snyder has been President of New
Ideas, Inc. for the last 15 years. During this time, he has had to change the strategic focus of the
company three times. The employees have become vocal recently about the decrease in their
bonus checks and their desire for increased profits. It seems as though his competition is always
introducing new products into the market, and New Ideas, Inc.'s niche products are constantly
changing. Moreover, the government has been active in passing new legislation to increase the
control of the product packaging and product contents. The technology used to manufacture the
products has continually changed to make the process more efficient.
101) The technology change in the manufacturing process of New Ideas, Inc.'s products to make
the process more efficient is the result of a competitor lowering its price. Therefore, it was a(n)
________.
A) external force of change
B) internal force of change
C) marketplace force of change
D) economic force of change
Answer: A
Diff: 2
Page Ref: 259
Topic: The Change Process
Skill: AACSB: Technology
102) Mr. Snyder has had to change the strategic focus of the company three times. The change in
strategic focus of the New Ideas, Inc., is a(n) ________.
A) external force of change
B) internal force of change
C) marketplace force of change
D) economic force of change
Answer: B
Diff: 2
Page Ref: 259
Topic: The Change Process
103) When the employees express their concern about their bonus checks, which of the following
types of forces of change is constraining Mr. Snyder?
A) external force of change
B) labor market force of change
C) internal force of change
D) social force of change
Answer: C
Diff: 2
Page Ref: 259
Topic: The Change Process
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New Ideas Part II (Scenario)
Although New Ideas, Inc., has been in business for 30 years, the company and its employees
seemingly have been in a constant state of change. Louis Snyder has been president of New
Ideas, Inc. for the last 15 years. During this time, he has had to change the strategic focus of the
company three times. It seems as though his competition is always introducing new products into
the market, and New Ideas, Inc.'s niche products are constantly changing. Moreover, the
government has been active in passing new legislation to increase the control of the product
packaging and product contents. The technology used to manufacture the products has
continually changed to make the process more efficient.
104) New Ideas, Inc., focuses on new ideas, uses technology that changes frequently, and has
strong competition in the market, describes what metaphor of change?
A) a calm water metaphor
B) a black-water rapid metaphor
C) a rapid water metaphor
D) a white-water rapids metaphor
Answer: D
Diff: 1
Page Ref: 260
Topic: The Change Process
Fred Fryer's Donuts (Scenario)
Since the integration of two new stores in Littleville, U.S. Fred Fryer's Donuts, Inc., has
recognized that there is a need for reengineering the entire organization. The main need is to
install new state-of-the-art kitchen equipment in the seven remaining stores, and then dispose of
all old equipment to a salvage dealer at three-fourths of the book value, or a loss of $2,000 per
store. This means that employees will have to be trained to operate the new computer
programmed equipment. Fred is setting up the main store as a training store. Employees from the
other stores will train at the main store for the five days that their respective store's equipment is
being converted. The regular employees from the main store have the responsibility of
instructing the classes or overseeing the installation of the new equipment and testing its
operation before that store's employees return from training. The organization is also
implementing teams to replace the old employee reporting system. Ordering materials will now
be done by an intranet among the stores and the corporate purchasing function. Fred has
promised that no one will lose his or her job because of the reengineering organizational
changes. He estimates that when the employees get to the computer programming training, as
many as 10 percent of the current employees will resign or retire. The planned opening of a new
store in Nowhere will absorb any "excess" employees due to the efficiency of the new
equipment.
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105) Do the employees of Fred Fryer's Donuts, Inc., have reason to be concerned about the
reengineering or to resist the changes that Fred has announced?
A) No. They have been promised a job after training on the new equipment.
B) Maybe. They do have a few changes occurring in their job.
C) Yes. Their whole work life could be changing.
D) Definitely. Everything in their job is changing, even the town in which they may be working.
Answer: D
Diff: 1
Page Ref: 261
Topic: Types of Organizational Change
106) What is the most successful way to deal with the human side of the reengineering to help to
change people and the nature and quality of their interpersonal work relationships?
A) training and development
B) organizational development
C) reengineering training
D) give the employees a training manual
Answer: B
Diff: 2
Page Ref: 263-264
Topic: Types of Organizational Change
107) The installation of the new equipment at Fred Fryer's Donuts, Inc., is an example of
________.
A) technological change
B) technological-automation change
C) technological-computerization change
D) technological-reengineering change
Answer: C
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
Skill: AACSB: Technology
108) Which of the following should Fred and the team leaders practice if they need to overcome
employee resistance?
A) assure the employees that they will have a job after training
B) encourage the employees to talk with their coworkers
C) tell employees that the new system is the best way to make donuts
D) educate employees and communicate with them about the changes
Answer: D
Diff: 1
Page Ref: 265
Topic: Managing Resistance to Change
Skill: AACSB: Communication
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
The Government Job (Scenario)
Colin was getting accustomed to his surroundings in state government. His efforts at getting
people to accept change had met with little resistance due to his and the new director's efforts as
well as the hard work of his subordinates. But now the hard part really startedactually
managing the change. What techniques could he and his agency's new director employ to most
effectively implement changes that would result in increased productivity in his department? He
considered changing three aspects of his agency: the structure, the technology, and the people.
109) If the new agency director decided to remove layers in the agency and increase the span of
managerial control, this would be considered changing the ________.
A) structural design
B) selection process
C) degree of centralization
D) structural components
Answer: D
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
110) If the agency director decided to shift away from a functional to a product design, this
would be considered changing the ________.
A) structural design
B) selection process
C) degree of centralization
D) structural components
Answer: A
Diff: 3
Page Ref: 262
Topic: Types of Organizational Change
111) If Colin decided to replace some employee work time with a telephone menu system, this
would be considered changing the ________.
A) organizational structure
B) technology
C) people
D) organizational development
Answer: B
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
Skill: AACSB: Technology
112) Finally, Colin decided his people could benefit from ________, a method of changing
behavior through unstructured group interaction.
A) survey feedback
B) sensitivity training
C) team building
D) intergroup development
Answer: B
Diff: 3
Page Ref: 263
Topic: Types of Organizational Change
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The Practice (Scenario)
Kelly Rae works for an ophthalmologist's office where she has been employed as a technician for
approximately one year. Kelly has been promoted to the position of clinic coordinator where she
is responsible for ensuring operational efficiency and effectiveness by managing and training
other technicians, overseeing the doctor's schedules, and coordinating activities between the
scheduling desk, the technicians, the insurance office, and the optical shop. Upon her promotion
she was given a mandate by the doctors to "clean house" in an effort to make fundamental
changes to enhance productivity.
113) If Kelly were to consider enhancing productivity by giving greater authority to other
technicians and increasing formalization, she would be considering ________ changes.
A) structural
B) technological
C) people
D) automatic
Answer: A
Diff: 2
Page Ref: 262
Topic: Types of Organizational Change
114) The two doctors at the practice have very different work habits. Each has his own team of
technicians who are used to the doctors' preferences and are comfortable with their routines; they
basically do the same thing every day. When Kelly suggested that they train all of the technicians
to work with both doctors, this led to significant resistance from all of the parties involved. The
technicians were concerned that they would no longer be able to perform their usual daily tasks.
Their resistance came from ________.
A) the technicians' belief that ambiguity would increase
B) the technicians' fear that they would be forced out of their habits
C) technicians' concern over personal loss
D) belief that Kelly's changes would harm the organization
Answer: B
Diff: 2
Page Ref: 264
Topic: Managing Resistance to Change
115) Shelly, a technician, was particularly concerned about the changes. She had spent a number
of years ingratiating herself with one of the doctors and, because of it, she had earned special
privileges, such as taking extended lunches with her husband. Shelly's resistance to change came
from her ________.
A) belief that uncertainty would increase
B) fear that she would be forced out of her habit
C) concern over personal loss
D) belief that Kelly's changes would harm the organization
Answer: C
Diff: 1
Page Ref: 264-265
Topic: Managing Resistance to Change
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The Management Seminar (Scenario)
Mandy recently returned from her two-day managerial seminar, How to Totally Change Your
Management and Leadership Style in Two Days. She felt the seminar was worthless (as she had
predicted), but it did give her a chance to think about how to change the culture of her
organization. She had been brought in by the new CEO as a change agent, and she has the
authority to make an impact. She felt that the recent hostile takeover by their parent company
had shocked everyone, especially given that the entire organization consisted of only 150 people
and had been in business for only 5 years. She felt that this might be the time to attempt cultural
change while everyone was still thinking in terms of change. As she tossed her leadership
seminar manual into the wastebasket, she considered what her first step might be and how well
the cultural change would work.
116) Of the following, which is an advantage that Mandy has to implement cultural change?
A) her new leadership skills
B) the recent purchase of her company
C) previous stable leadership
D) her managerial level
Answer: B
Diff: 3
Page Ref: 266
Topic: Contemporary Issues in Managing Change
117) Which of the following statements is true concerning the leadership of Mandy's company
and its effect on cultural change?
A) New top leadership can be an advantage.
B) New top leadership is rarely an advantage.
C) It is important for the cultural change to begin with employees first.
D) Leadership issues have little impact on cultural change.
Answer: A
Diff: 2
Page Ref: 266
Topic: Contemporary Issues in Managing Change
118) Which of the following statements about her company is most advantageous to Mandy as
she attempts to change the cultural leadership?
A) Change would be easiest with a company that is older and has a small number of employees.
B) Change would be easiest in an older company with many employees.
C) Implementing change in small companies that are new is easiest.
D) Implementing change in small companies that are old is easiest.
Answer: C
Diff: 3
Page Ref: 266
Topic: Contemporary Issues in Managing Change
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119) Of the following, which statement about her company's previous culture would be most
advantageous to her accomplishing a change?
A) A previously strong culture is receptive to change.
B) A previously nonexistent culture is receptive to change.
C) A moderately strong culture is receptive to change.
D) A weak culture is more receptive to change.
Answer: D
Diff: 3
Page Ref: 266
Topic: Contemporary Issues in Managing Change
Fred's Situation (Scenario)
Fred was not handling the change in his department well. The company had recently changed
hands, and even though no jobs had been lost, people had been changing jobs and were being
asked to move to different locations. The new leadership had a completely different outlook than
management he had worked under for the past 21 years. Fred found that he was unable to
concentrate at work and generally felt like he did not like his job anymore. At home he was
getting headaches and having trouble sleeping, which only enhanced his feeling that things were
not going to work out well for him. When he thought about it, he had always hated change. He
had chosen this line of work partially because it was considered stable (boring to some) and
predictable. Fred's new boss kept trying to convince him that he was a valuable employee and
that new opportunities, along with salary increases, were in store in his future. Unfortunately,
Fred felt like he never knew what to expect from day to day and what Fred really wanted was to
have things return to the way they were.
120) Fred was obviously feeling stress. Which of the following is not a factor of the stress that
Fred feels?
A) It is a static condition.
B) It may involve opportunity or threats.
C) It is related to what Fred desires.
D) It is related to a desire of Fred's that is uncertain.
Answer: A
Diff: 2
Page Ref: 267
Topic: Contemporary Issues in Managing Change
121) Fred is obviously resistant to the change being introduced in his organization. Which of the
following reasons is most likely the primary driver of Fred's resistance?
A) habit
B) concern over personal loss
C) uncertainty
D) belief that change is not in the organization's best interest
Answer: C
Diff: 2
Page Ref: 264
Topic: Managing Resistance to Change
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122) Which of the following statements is not true concerning the stress Fred may be feeling?
A) Stress may come from any change in Fred's life.
B) Stress may come from personal factors.
C) Stress is not related to personality differences.
D) Job-related factors may be part of Fred's stress.
Answer: C
Diff: 1
Page Ref: 268
Topic: Contemporary Issues in Managing Change
123) Which of the following would be a behavioral symptom of Fred's stress?
A) headaches
B) a rise in Fred's blood pressure
C) his job dissatisfaction
D) problems sleeping
Answer: D
Diff: 2
Page Ref: 268
Topic: Contemporary Issues in Managing Change
124) If Fred's manager noticed Fred's stress, which approach would he or she find to be the most
useful in helping to reduce Fred's stress level?
A) select better employees
B) improve organizational communications
C) redesign Fred's job to increase his workload
D) redesign Fred's job to decrease his workload
Answer: B
Diff: 3
Page Ref: 268
Topic: Contemporary Issues in Managing Change
Skill: AACSB: Communication
125) Fred's coworker, Tammy, is also feeling stress. Tammy's stress, however, is not due to the
new changes at work. Rather, Tammy's stress is due to some rather large credit card bills she
owes and her recent separation from her partner. Which of the following tactics would be most
appropriate for the manager to use to help Tammy reduce her stress level?
A) improve organizational communication
B) redesign Tammy's job to decrease her workload
C) implement an MBO program
D) provide employee counseling for Tammy
Answer: D
Diff: 3
Page Ref: 269
Topic: Contemporary Issues in Managing Change
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Lightspeed.com (Scenario)
Edwin Edwards is a team leader for Lightspeed.com, an e-business that has employees in every
global time zone. Some of the factors that the team has to contend with are deadlines, strong
work ethic, the creativity-innovation chain, high-speed turnaround, and professionalism. As team
leader, Edwin sees team members via videoconference only a few times per year or via
compressed video via Internet a few times more per year. A frustration that he is encountering is
that he works with all of these people and does not have control over their "actual" work or the
few organizational rules, regulations, and policies. Yet, due to the position he is in, he feels he
gets all of their complaints. The team does not deal well when a member offers an "off-the-wall"
solution to a team problem; team members seem to have more trouble with this than any other
team-conflict issue. What he likes most about leading the team is that they seem to prefer getting
their objective accomplished instead of wasting time trying to decide who should be doing what
tasks.
126) When Edwin feels frustrated that he does not have control over team members' "actual"
work or the organizational rules, regulations, and policies, he is contending with ________.
A) low external control
B) diversity of opinions
C) abundant resources
D) unclear goals
Answer: A
Diff: 2
Page Ref: 272
Topic: Stimulating Innovation
127) When a member offers an "off-the-wall" solution to a team problem, it appears that Edwin
has to contend with what cultural variable?
A) tolerance of conflict
B) tolerance of risk
C) tolerance of the impractical
D) focus on ends
Answer: C
Diff: 2
Page Ref: 272
Topic: Stimulating Innovation
128) The part Edwin likes the most is that the team seems to prefer getting their objective
accomplished instead of wasting time, which indicates that the team is ________.
A) tolerant of conflict
B) an open-system focus team
C) able to deal with high risk
D) focused on ends rather than means
Answer: D
Diff: 2
Page Ref: 272
Topic: Stimulating Innovation
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129) In a short essay, discuss the external and internal forces that bring about the need for
change.
Answer: The external forces that create the need for change come from various sources. The
marketplace can affect companies by requiring them to constantly adapt to changing consumer
desires as they develop new search capabilities. Governmental laws and regulations are a
frequent impetus for change. Technology and the fluctuation in labor markets also forces
managers to make changes. Organizations that need certain kinds of employees must change
their human resource management activities to attract and retain skilled employees in the areas of
greatest need. Economic changes, of course, affect almost all organizations. For instance, global
economic pressures force organizations to become more cost efficient. But even in a strong
economy, uncertainties about interest rates, federal budget deficits, and currency exchange rates
create conditions that may force organizations to change. Internal forces also create the need for
change. These internal forces tend to originate from the internal operations of the organization or
from the impact of external changes. A redefinition or modification of an organization's strategy
often introduces a host of changes. In addition, an organization's workforce is rarely static. Its
composition changes in terms of age, education, ethnic background, sex, and so forth. The
introduction of new equipment represents another internal force for change. Employees may
have their jobs redesigned, need to undergo training on how to operate the new equipment, or be
required to establish new interaction patterns within their work group. Finally, employee
attitudes such as job dissatisfaction may lead to increased absenteeism, more voluntary
resignations, and even labor strikes. Such events often lead to changes in management policies
and practices.
Diff: 2
Page Ref: 259
Topic: The Change Process
130) In a short essay, describe, compare, and contrast the "calm waters" and "white-water rapids"
views of organizational change.
Answer: Up until the late 1980s, the calm waters metaphor was fairly description of the situation
that managers faced. It's best illustrated by Kurt Lewin's 3-step description of the change
process. According to Lewin, successful change can be planned and requires unfreezing the
status quo, changing to a new state, and refreezing to make the change permanent. The status quo
can be considered an equilibrium state. To move from this equilibrium, unfreezing is necessary.
Unfreezing can be thought of as preparing for the needed change. It can be achieved by
increasing the driving forces, which are forces that drive change and direct behavior away from
the status quo, decreasing the restraining forces, which are forces that resist change and push
behavior toward the status quo, or combining the two approaches. On the other hand, the whitewater rapids metaphor is consistent with the discussion of uncertain and dynamic environments.
It's also consistent with the dynamics of a world that's increasingly dominated by information,
ideas, and knowledge. The stability and predictability of the calm waters metaphor do not exist.
Disruptions in the status quo are not occasional and temporary, and they are not followed by a
return to calm waters. Many managers never get out of the rapids. They face constant change,
bordering on chaos. These managers must play a game that they've never played before, and the
game is governed by rules that are created as the game progresses.
Diff: 1
Page Ref: 259-260
Topic: The Change Process
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131) In a short essay, explain organizational change. Then briefly discuss the three types of
change.
Answer: Most managers, at one point or another, will have to make changes in some aspects of
their workplace. We classify these changes as organizational changewhich is any alteration of
people, structure, or technology. Organizational changes often need someone to act as a catalyst
and assume the responsibility for managing the change processthat is, a change agent. There
are three types: structure, technology, and people. Changing structure includes any change in
structural variables such as reporting relationships, coordination mechanisms, employee
empowerment, or job redesign. Because an organization's structure is defined in terms of work
specialization, departmentalization, chain of command, span of control, centralization and
decentralization, and formalization, managers can alter one or more of these structural
components. Another option would be to make major changes in the actual structural design.
Changing technology encompasses modifications in the way work is performed or the methods
and equipment that are used. Competitive factors or new innovations within an industry often
require managers to introduce new equipment, tools, or operating methods. Automation is a
technological change that replaces certain tasks done by people with tasks done by machines.
Probably the most visible technological changes in recent years, though, have come through
managers' efforts to expand computerization. Most organizations have sophisticated information
systems. Changing people refers to changes in attitudes, expectations, perceptions, and behavior
of individuals or groups. The term organizational development (OD), though occasionally
referring to all types of change, essentially focuses on techniques or programs to change people
and the nature and quality of interpersonal work relationships.
Diff: 2
Page Ref: 262-263
Topic: Types of Organizational Change
132) In a short essay, explain organizational development (OD). Then list and explain the five
most popular OD techniques.
Answer: Organizational development (OD), though occasionally referring to all types of change,
essentially focuses on techniques or programs to change people and the nature and quality of
interpersonal work relationships. The common thread in these techniques is that each seeks to
bring about changes in the organization's people.
a. Sensitivity traininga method of changing behavior through unstructured group interaction.
b. Team buildingactivities that help team members learn how each member thinks and works.
c. Intergroup developmentchanging the attitudes, stereotypes, and perceptions that work
groups have about each other.
d. Process consultationan outside consultant helps the manager understand how interpersonal
processes are affecting the way work is being done.
e. Survey feedbacka technique for assessing attitudes and perceptions, identifying
discrepancies in these, and resolving the differences by using survey information in feedback
groups.
Diff: 2
Page Ref: 263
Topic: Types of Organizational Change
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133) In a short essay, list and discuss the four reasons that describe why people resist change.
Include an example of each reason to support your answer.
Answer: An individual is likely to resist change for the following reasons: uncertainty, habit,
concern over personal loss, and the belief that the change is not in the organization's best interest.
Change replaces the known with ambiguity and uncertainty. For example, when quality control
methods based on sophisticated statistical models are introduced into manufacturing plants,
many quality control inspectors have to learn the new methods. Some inspectors may fear that
they will be unable to do so and may, therefore, develop a negative attitude toward the change or
behave poorly if required to use them. Another cause of resistance is that we do things out of
habit. Every day, when you go to school or work you probably go the same way, whether
walking, driving, or using mass transit. If you're like most people, you find a single approach and
use it regularly. As human beings, we're creatures of habit. Life is complex enoughwe don't
want to have to consider the full range of options for the hundreds of decisions we make every
day. To cope with this complexity, we rely on habits or programmed responses. But when
confronted with change, our tendency to respond in our accustomed ways becomes a source of
resistance. The third cause of resistance is the fear of losing something already possessed.
Change threatens the investment you've already made in the status quo. The more that people
have invested in the current system, the more they resist change. Why? They fear the loss of
status, money, authority, friendships, personal convenience, or other economic benefits that they
value. This helps explain why older workers tend to resist change more than younger workers.
Older employees have generally invested more in the current system and thus have more to lose
by changing. A final cause of resistance is a person's belief that the change is incompatible with
the goals and interests of the organization. For instance, an employee who believes that a
proposed new job procedure will reduce product quality or productivity can be expected to resist
the change. If the employee expresses his or her resistance positively, this actually can be
beneficial to the organization.
Diff: 2
Page Ref: 264-265
Topic: Managing Resistance to Change
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134) In a short essay, define stress. Next, discuss the various causes of stress and explain how
managers can recognize stress in their employees.
Answer: Stress is the adverse reaction people have to excessive pressure placed on them from
extraordinary demands, constraints, or opportunities. Stress is not always bad. Although it's often
discussed in a negative context, stress does have a positive value, particularly when it offers a
potential gain. However, stress is more often associated with constraints and demands. A
constraint prevents you from doing what you desire; demands refer to the loss of something
desired. When you take a test at school or have your annual performance review at work, you
feel stress because you confront opportunity, constraints, and demands. A good performance
review may lead to a promotion, greater responsibilities, and a higher salary. But a poor review
may keep you from getting the promotion. An extremely poor review might lead to your being
fired. Just because the conditions are right for stress to surface, however, doesn't always mean it
will. Two conditions are necessary for potential stress to become actual stress. First, there must
be uncertainty over the outcome, and second, the outcome must be important. Stress can be
caused by personal factors and by job-related factors. Clearly, change of any kindpersonal or
job-relatedhas the potential to cause stress as it can involve demands, constraints, or
opportunities. Because organizational changes are frequently created in a climate of uncertainty
and around issues that are important to employees, it's not surprising that change is a major
stressor. Stress is shown in a number of ways. For instance, an employee who is experiencing
high stress may become depressed, accident prone, or argumentative; may have difficulty
making routine decisions; may be easily distracted; and so on. Stress symptoms can be grouped
under three general categories: physical, psychological, and behavioral. All of these can
significantly affect an employee's work.
Diff: 2
Page Ref: 267-268
Topic: Contemporary Issues in Managing Change
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135) In a short essay, discuss three ways that managers can help to reduce stress for their
employees.
Answer: Things that managers can do in terms of job-related factors begin with employee
selection. Managers need to make sure that an employee's abilities match the job requirements.
When employees are in over their heads, their stress levels typically will be high. A realistic job
preview during the selection process can minimize stress by reducing ambiguity over job
expectations. Improved organizational communications will keep ambiguity-induced stress to a
minimum. Similarly, a performance planning program such as MBO will clarify job
responsibilities, provide clear performance goals, and reduce ambiguity through feedback. Job
redesign is also a way to reduce stress. If stress can be traced to boredom or to work overload,
jobs should be redesigned to increase challenge or to reduce the workload. Redesigns that
increase opportunities for employees to participate in decisions and to gain social support have
also been found to lessen stress. Stress from an employee's personal life raises two problems.
First, it's difficult for the manager to control directly. Second, there are ethical considerations.
Specifically, does the manager have the right to intrudeeven in the most subtle waysin an
employee's personal life? If a manager believes it's ethical and the employee is receptive, there
are a few approaches the manager can consider. Employee counseling can provide stress relief.
Employees often want to talk to someone about their problems, and the organizationthrough its
managers, in-house human resource counselors, or free or low-cost outside professional
helpcan meet that need. A time management program can help employees whose personal lives
suffer from a lack of planning to sort out their priorities. Still another approach is
organizationally sponsored wellness programs.
Diff: 2
Page Ref: 268-269
Topic: Contemporary Issues in Managing Change
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136) In a short essay, define creativity and innovation. Next, discuss the three sets of variables
that have been found to stimulate innovation.
Answer: Creativity refers to the ability to combine ideas in a unique way or to make unusual
associations between ideas. An organization that stimulates creativity develops unique ways to
work or novel solutions to problems. Innovation is the process of taking a creative idea and
turning it into a useful product, service, or method of operation. Thus, the innovative
organization is characterized by its ability to channel creativity into useful outcomes. When
managers talk about changing an organization to make it more creative, they usually mean they
want to stimulate and nurture innovation. The three sets of variables that have been found to
stimulate innovation are the organization's structure, culture, and human resource practices.
Structural variables: Research into the effect of structural variables on innovation shows five
things. First, organic structures positively influence innovation. Second, the easy availability of
plentiful resources provides a key building block for innovation. Third, frequent interunit
communication helps break down barriers to innovation. Fourth, innovative organizations try to
minimize extreme time pressures on creative activities despite the demands of white-waterrapids-type environments. Finally, studies have shown that when an organization's structure
provided explicit support for creativity from work and nonwork sources, an employee's creative
performance was enhanced. Cultural variables: Innovative organizations tend to have similar
cultures. They encourage experimentation, reward both successes and failures, and celebrate
mistakes. Human resource variables: Within the human resource category, innovative
organizations actively promote the training and development of their members so that their
knowledge remains current, offer their employees high job security to reduce the fear of getting
fired for making mistakes, and encourage individuals to become "champions" of change.
Diff: 3
Page Ref: 270-273
Topic: Stimulating Innovation
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