Instructor Manual For Management Fundamentals Concepts, Applications, and Skill Development 9th Edit

Instructor Manual For Management Fundamentals Concepts, Applications, and Skill Development 9e Robert N. Lussier Chapter 1-15

Chapter 1: Management and Its History Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

1-1. Describe specific examples of the resources used by a present or past boss. Give the manager‘s job title and department. (LO: 1-1) My boss was the branch manager at Merchants Bank. The primary resource she used was the tellers (human resources) to get the job done. When the manager was filling in for tellers at lunch or on break, she and the other tellers conducted banking transactions for savings and checking accounts on the computer terminal (physical resources), which was connected to the mainframe computer at the home office. The computer was the main information resource on account activities. We were handling financial resources all day long.

1-2. Identify a specific manager, preferably one who is or was your boss, and explain what makes him or her successful or unsuccessful. Give examples. (LO: 1-1) My boss owns Bill‘s Homemade Ice Cream. Bill‘s is only open in the summer. Bill, who is around 50 years old, is successful because he only checks in a couple of times a day. The rest of the day he is free to go where he wants to and do whatever he wants to do. The reason for his success is that he hires good college students to work and trains them well so that he does not need to be around to supervise them.

1-3. Identify a specific manager, preferably one who is or was your boss, and give examples of how that person performs each of the four management functions. (LO: 1-4) My boss, Sonia, owns her own beauty salon. Sonia has to plan the work schedules for 15 employees. She has to assign her customers to specific hairdressers, pedicurists, and/or manicurists. When people have multiple services, coordination is important so that customers

don‘t have to wait around for the next service. Sonia does the staffing by hiring and training all the employees. Sonia leads employees to get them to do a good job. She continually reminds all of us how important customer satisfaction is. It works because most of our customers always come back to us, and new customers tend to become regulars, too. Sonia spends a lot of her time talking to the customers and making sure they are happy with their haircut or nails; if they are not, she has the employee try and fix the problem. Once in a while, she will give a customer the next visit free so she doesn‘t lose that person‘s business.

1-4. Identify a specific manager, preferably one who is or was your boss, and give examples of how that person performs in each of the three management role categories. Be sure to identify at least one of the three or four roles in each category. (LO: 1-5) I worked this past summer primarily catching boxes as they came off the conveyer belt. My boss, John, spent most of the time playing the interpersonal role of leader because the job was pretty boring, and he tried to help us have a good time by joking around and gaining satisfaction from the people we work with. John spent most of his time in the informational role as the monitor.

When the machines were acting up, he would tinker with them, or when he couldn‘t fix them, he‘d play the disseminator role to get maintenance to come fix the machines. When we have a machine not working, it‘s a crisis, and John plays the decisional role of disturbance handler to fix them.

1-5. Identify the levels of management in a specific organization by level and title. Be sure to give the organization‘s name. (LO: 1-6) I work part time in the office for a car dealer, Casey Dodge. There are four supervisors: office manager, service manager, sales manager, and auto body manager. These four supervisors report to the general manager, who reports to the top manager, president/owner, Mr. Casey.

1-7. Would you prefer to work for a small or large business, and a profit or not-for-profit organization? (LO: 1-6) I‘d really like to work for Google, and it is a very large for-profit business.

Additional Work Application Questions (Not in the book) 1-1. Select a manager, preferably one who is or was your boss, and state the specific management skills he or she uses on the job. (LO: 1-3) My boss, Jeff, is the manager at Jiffy Lube. Jeff needs technical skills to lube the cars because part of his time is spent doing it; he also has to train the workers how to lube the cars. Jeff needs interpersonal skills to motivate his employees to come to work and to do a good job. Jeff uses his decision-making skills to determine how many people to schedule, when to schedule them, when to order more supplies, and so on.

1-2. Identify which type of boss you have now or have had previously. If that person is or was a functional manager, be sure to specify the functional tasks of the department. (LO: 1-6) When I worked for A&P Supermarket, I worked for Karen, the produce manager. Karen is a functional manager and is responsible for the produce department. Karen did not hire the staff, but she did have the functional tasks of training them to stock the shelves with produce and supervising their work.

Review Question Answers 1-1. What are a manager‘s resources?

The manager‘s resources are human, financial, physical, and informational.

1-2. What are the three management skills?

Management skills include technical, interpersonal, and decision-making skills.

1-3. What are the four functions of management?

The four functions of management include planning, organizing, leading, and controlling.

1-4. What are the three management role categories?

The three management role categories include interpersonal, informational, and decisional roles.

1-5. What are the three levels of management?

The three levels of management are top managers, middle managers, and first-line managers.

1-6. What are the three types of managers?

The three types of managers are general managers, functional managers, and project managers.

1-7. What are the objectives of this book?

The objectives of this book are to teach you the important concepts of management, to develop your ability to apply the management concepts through critical thinking, and to develop your management skills in your personal and professional lives.

Communication Skills Answers Applications may also be used as class discussion questions or written assignments to develop communication skills.

1-1. Are you interested in being a manager?

Answers will vary.

1-2. Why is it important to take this course in management?

Answers will vary. Some of the reasons may include that it is important to learn about management because knowledge of what management is can help you to be a better employee, because this course can help you to qualify to become a manager, and because it can help you if you become a manager.

1-3. Is it more important for managers to be efficient or effective? Can you improve both at the same time?

It is more important for managers to be effective than efficient because even if managers do the wrong things very well, they will not be successful.

No. You really can‘t improve both at the same time in the sense that you have to be effective before you can be efficient.

1-4. Is management ability universal? In other words, can a good manager in one environment (e.g. computers) also be effective in another (e.g. banking)?

Generally, the answer is yes. Many managers change industries throughout their careers and are effective in more than one industry.

1-5. Some people say the hard skills (technical, finance, quantitative analysis) are more important for managers than soft skills (interpersonal), and some say the opposite is true.

What is your view?

Although it can make a good debate, it is really hard to say whether one is really more important than the other. A truly good manager has both hard and soft skills; most people don‘t progress in management without both.

1-6. Is your college professor a manager? Why or why not?

No. College professors are not really managers even though they do perform the four functions of management. Students are not employees of the college; in essence, students are customers, so your professor is not a manager.

1-7. When a good employee is promoted to management, which management level is the promotion usually to, and how do the management skills and functions change with the job promotion?

When an employee is promoted, it is usually to the first-line management position. The employee‘s technical skills are still important, but interpersonal skills and decision-making skills become more important as a manager. The nonmanager operative employee performs mostly nonmanagement functions. However, as a manager, the new supervisor will have to spend more time planning, organizing, leading, and controlling.

1-8. When an employee is promoted to a manager, do most organizations provide some type of training? Should they? Why or why not?

No. Most organizations don‘t provide any training when an employee is promoted to a manager.

Yes. Organizations should provide some type of training for the employee. Most successful leaders have had extensive training.

Applying the Concept Answers Applying the Concept 1-1: Management Skills Identify each activity as being one of the following types of management skills: A. Technical B. Interpersonal C. Decision making 1. The manager is in a meeting making a presentation.

B. Interpersonal. Make a presentation requires communication skills, which is part of interpersonal skills.

2. The manager is working on fixing a broken machine.

A. Technical. Fixing a machine takes technical skills.

3. The manager is sending an email letting the employees know they exceeded the sales goal.

B. Interpersonal. Although writing an e-mail does require some limited technical ability, everyone seems to have in business today; the focus is on communication of information. And communication is an important part of interpersonal skills.

4. The manager is scheduling which machines will produce each product next week.

C. Decision making. Scheduling requires the manager to make decisions.

5. The manager is trying to figure out a way to solve a problem.

C. Decision making. Part of the definition of decision-making is solving problems.

6. The manager is praising an employee for a job well done.

B. Interpersonal. Thanking someone with praise is a form of motivation.

Applying the Concept 1-2: Management Functions Indicate which type of function the manager is performing in each situation:

A. Planning B. Organizing C. Leading D. Controlling E. Nonmanagement 7. The manager is encouraging an employee to get a college degree so she can become a manager.

C. Leading. The manager is trying to influence the employee; influencing is in the definition of leadership.

8. The manager is conducting a job interview to select a new employee for a new open position in sales.

B. Organizing. As stated in the text, selecting is part of staffing–organizing function.

9. The manager is emptying his trash.

E. Nonmanagement. The manager gets the job done through others, and this is not really performing any of the management functions.

10. The manager is scheduling employee work hours for next week.

A. Planning. Scheduling future work hours is part of planning.

11. The manager is giving the workers a pep talk to motivate them to work hard to meet the production quota today with an absent employee.

C. Leading. The pep talk is given to motivate employees, which is intended to influence their performance 12. The manager is conducting an employee‘s annual performance evaluation.

B. Organizing. As stated in the text, evaluating employees is part of the staffing–organizing function.

13. The manager is checking how many new computers have been produced so far today.

D. Controlling. The manager is monitoring and measuring progress, which is in the definition of controlling.

14. The manager is greeting customers as they enter the retail store asking if she can be of assistance finding anything.

E. Nonmanagement. Waiting on customers is employee, not management, work.

Applying the Concept 1-3: Management Roles NOTE: This application has two parts. You can keep it simple by not requiring students to identify the roles within each category Identify each of the managerial activities as part of one of the three role categories and its role within each category: A. Interpersonal role (1 Figurehead, 2 Leader, and 3 Liaison) B. Informational role (1 Monitor, 2 Disseminator, and 3 Spokesperson) C. Decisional role (1 Entrepreneur, 2 Disturbance handler, 3 Resource allocator, and 4 Negotiator) 15. The managers are meeting with two employees to resolve a conflict between them.

C. Decisional role; 2 Disturbance handler. The manager is taking corrective action during a dispute.

16. The sales manager is meeting with the production manager about a customer order.

A. Interpersonal role; 3 Liaison. The sales manager is interacting with the manager from production (outside her unit) to gain information.

17. The manager is sending an email with the new work schedule to employees for next week.

B. Informational role; 2 Disseminator. The manager is sending information to others.

18. The manager discusses next year‘s budget.

C. Decisional role; 3 Resource allocator. As stated in the text, budgeting is part of the resource allocation role

19. The mayor is cutting the ribbon at the groundbreaking for the new town hall.

A. Interpersonal role; 1 Figurehead. The manager is playing the figurehead role–ceremonial activity.

20. The manager develops a new app that will be sold as an additional source of income.

C. Decisional role; 1 Entrepreneur. The manager is playing the entrepreneur role by developing a new app.

21. The manager is reading the monthly budget report.

B. Informational role; 1 Monitor. The manager is playing the monitor role by reading the report to receive information.

22. The manager shows a new employee how to record her working hours.

A. Interpersonal role; 2 Leader. The manager is playing the leader role by showing the employee how to record working hours.

Applying the Concept 1-4: Differences Among Management Levels Identify the level of management in the following five instances: A. Top B. Middle C. First-line 23. Managers who report to executives.

B. Middle. Middle managers report to an executive.

24. Managers who need technical skills more than decision-making skills C. First-line. First-line managers have a greater need for technical skills than do top or middle managers.

25. Managers who tend to spend more time planning and organizing.

A. Top. Top managers spend more time planning and organizing than do first-line or middle managers.

26. Managers who have operative employees reporting to them.

C. First-line. First-line managers supervise operative employees.

27. Managers who take the long-term strategy and develop short-term operating plans.

B. Middle. Middle managers have a more balanced need for the management skills and functions.

Applying the Concept 1-5: Matching History of Management People and Theories Identify the person or theory that helped develop the following six theory categories—Exhibit 110.

A. Classical theory B. Behavioral theory C. Management science D. Systems theory E. Sociotechnical theory F. Contingency theory 28. Douglas McGregor developed Theory X and Theory Y. B. Behavioral theory. McGregor was a behavioral theorist.

29. Frederick Taylor, focus on analyzing jobs and redesigning them to be more efficient.

A. Classical theory. He is credited as being the father of scientific management.

30. Focused on the use of math to make decisions in operations management.

C. Management science. Essentially definition from the book.

31. Elton Mayo, human relations movement.

B. Behavioral theory. Mayo is listed in the text as a contributor to this theory.

32. Eric Trist, focus on integrating people and technology.

E. Sociotechnical theory. Name and definition from book.

33. Henry Fayol, Administrative Theory.

A. Classical theory. Fayol is listed as a contributor to this theory.

34. Russell Ackoff, focus on viewing the organization as a whole and as the interrelationship of its parts.

D. Systems theory. Name and definition from the book.

35. Tom Burns and George Stalker didn‘t believe there is on best management approach for all situations.

F. Contingency theory. Name and revised definition from the book.

Instructor Manual Chapter 2: The Environment: Culture, Ethics, and Social Responsibility Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

2-1. Identify the quality and value of a product you purchased recently. (LO: 2-1) I bought a used 2006 Honda Accord because of its reputation for being a quality automobile. My Honda was a good value because I got a good price on it, but more importantly, it provides me with the pleasure of being able to go where I want to go, when I want to go. And I‘m doing it in a sporty-looking car with a standard shift.

2-2. Give an example of how one firm‘s competitors have affected that business. (LO: 2-1)

In East Longmeadow, there is a Big Y Supermarket that had no competitors nearby. However, an Edward‘s Supermarket moved in across the street from Big Y. As a result, Big Y has lost some customers it would have kept if Edward‘s had not moved in across the street.

2-3. Identify the cultural heroes, stories, slogans, symbols, and ceremonies for an organization you are/were a member of. (LO: 2-2) At Springfield College, I‘ve heard that Dogget was a hero. I don‘t recall any stories. The Springfield College triangle of spirit, mind, and body is the symbol used at the college. The Humanics Philosophy is a Springfield College slogan. There are a few awards ceremonies, such as Stepping Up Day. 2-4. Give at least two organizational examples of unethical behavior and the justification that was used in each instance. (LO: 2-4) Moral justification—I lied to get competitor information only to help the company.

Advantageous comparison—I only take a long lunch once in a while; Tom does it all the time.

2-5. Give an example from an organization where you work or have worked of behavior at each of the three levels of moral development. (LO: 2-5) At CDR Grocery, where I used to work, many of my coworkers displayed preconventional behavior by lying to look good. Also, many of my coworkers would display conventional behavior by taking longer breaks because they felt it was justified as ―everyone else did it.‖ I displayed postconventional behavior because I tended to work faster than the rest of my coworkers when we stocked shelves even though they complained about it.

2-6. Select a business and identify how it manages ethics. (LO: 2-7) When I worked at Allstate Insurance, it had a code of ethics that stressed being fair to the policyholder. Top management did give a good example of ethical behavior. As an auto accident adjuster, I was not paid by commission, so there was no need for me to try to give people less money than it took to do the job correctly. My boss also reminded me to be fair to the customers; it was one criterion of my performance appraisal.

2-7. Select a business and identify how it is socially responsible on a specific issue. (LO: 2-8)

I‘m the coach for the Blue Angels Little League baseball team in my hometown. I went to Pizza Plaza and got it to be our sponsor. Pizza Plaza paid for new uniforms, and on the back of each shirt it says ―Pizza Plaza.‖ Pizza Plaza used social reaction by granting the request for sponsorship of the Blue Angels.

2-8. Select a business and identify its sustainability practices. (LO: 2-8) I work for Walker Construction. We recycle all paper and plastic products at our office. Our office has LEED-certified interiors and exteriors. Also, all employees must turn off their computers at the end of each workday before they go home. And if you are the last employee to leave at the end of the day, your job is to turn out all the lights so that no electricity is wasted while no one is at the office.

Additional Work Application Questions (not in the book) State the mission of an organization, preferably an organization you work for or have worked for. (LO: 2-1) The mission of Springfield College is to educate students in spirit, mind, and body for leadership in service to humanity by building upon its foundation of humanics and academic excellence.

2-1. Illustrate the systems process for an organization you work for or have worked for.

(LO: 2-1) At McDonald‘s, we get inputs including meat, buns, lettuce, cheese, pickles, onions, sauce, and Big Mac boxes. We cook the all-beef patties and put them on a bun with lettuce, cheese, pickles, onions, and sauce. Then we put them in a box as our Big Mac output.

2-2. Give an example of how technology has affected one or more organizations, preferably one you work for or have worked for. (LO: 2-1) When I used to shop at Costco Wholesale, it had two people at the checkout. One person would read the product numbers to the other one who would type them into the cash register. But now, Costco Wholesale finally upgraded its technology to the modern computer scanners. Now, it only needs one person at each cashier station. It is more accurate and faster at checking people out, so it has created customer value.

2-3. Describe the organizational culture at all three levels for a firm you work for or have worked for. Does the organization have a strong or a weak and a healthy or an unhealthy culture? (LO: 2-2) I work at Abdows Big Boy Restaurant. Our major assumption is deeply ingrained so that it is the same as our values and beliefs. Our value and belief is customer satisfaction. We are trained and see by example how important it is to give quick, courteous service. One of the expected behaviors is to help others provide customer service. For example, if one table server is busy and another is not, you wait on tables that are not yours until the person catches up. Table servers also help bus people to clean tables when they are busy.

We have a strong and healthy culture. Everyone works together with similar behavior and values and beliefs to help Abdows succeed at meeting its mission.

Review Question Answers 2-1. What are the factors within the internal environment?

The five internal environmental factors are management and culture, mission, resources, the systems process, and structure.

2-2. What are the components of the systems process?

The systems process has four components: (1) inputs, (2) transformation, (3) outputs, and (4) feedback.

2-3. How is quality determined, and why do people buy products?

Customers determine quality by comparing a product‘s actual functioning to their requirements to determine value. People don‘t simply buy a product itself. They buy the benefit they expect to derive from that product.

2-4. What is the external environment?

The organization‘s external environment includes the factors outside its boundaries that affect its performance.

2-5. What are the five artifacts of organizational culture?

The six artifacts of culture are: (1) heroes, (2) stories, (3) slogans, (4) symbols, (5) rituals, and (6) ceremonies.

2-6. What are the levels of culture?

The three levels of culture are behavior, values and beliefs, and assumptions.

2-7. What is a learning organization?

A learning organization has a culture that values sharing knowledge so as to adapt to the changing environment and continuously improve.

2-8. What are the levels of moral development?

The three levels of moral development are preconventional, conventional, and postconventional.

2-9. How do people justify unethical behavior?

People justify unethical behavior by using moral justification for the behavior, including displacement of responsibility, diffusion of responsibility, advantageous comparison, disregard or distortion of consequences, attribution of blame, and euphemistic labeling.

2-10. What is the stakeholders‘ approach to ethics?

Under the stakeholders‘ approach to ethics, when making decisions, you try to create a win–win situation for all relevant stakeholders so that everyone benefits from the decision.

2-11. What is social responsibility?

Social responsibility is the conscious effort to operate in a manner that creates a win–win situation for all stakeholders.

2-12. What are some ways in which businesses are going ―green‖?

Firms are going green by constructing energy-efficient buildings, installing or upgrading recycling systems, using renewable energy, purchasing environmentally preferable equipment and supplies, and working with one another and with surrounding communities to advance sustainability values.

Communication Skills Answers 2-1. Do you believe that most organizations focus on creating customer value?

Answers will vary.

2-2. Do you think that all organizations should use total quality management (TQM)?

Explain your answer.

Answers will vary, but students should realize the importance of the two TQM principles in all organizations.

2-3. What is the relationship among management and mission, resources, the systems process, and structure? Which of these internal factors are ends, and which are means?

Management determines the mission, resources, systems process, and structure; all affect organizational performance. The mission is an expression of the ends the organization strives to attain. The other internal environment factors are considered the means to achieve the ends.

2-4. If you can‘t control the external environment, why be concerned about it anyway?

Businesses should be concerned about the external environment because it can affect the business‘s performance. Although a business can‘t control the external environment, it needs to try to influence the external factors to its advantage, or at least adjust to them.

2-5. Which of the five artifacts, or important ways that employees learn about organizational culture, is the most important?

Answers will vary.

2-6. What is the difference between a strong and weak organizational culture, and which is preferable?

Organizations with strong cultures have employees who subconsciously know the shared assumptions; consciously know the values and beliefs; agree with the shared assumptions, values, and beliefs; and behave as expected. A positive strong culture is preferred.

2-7. What is symbolic leadership? Is it important?

Symbolic leaders articulate a vision for an organization and reinforce the culture through slogans, symbols, and ceremonies.

Yes. As stated in the text, managing culture is an important part of top management. To successfully change or merge cultures, a strong symbolic leader is needed.

2-8. What is a learning organization? Should a manager create one?

A learning organization has a culture that values sharing knowledge so as to adapt to the changing environment and continuously improve.

Yes. Managers who don‘t change with the environment will not be successful in the long run.

2-9. Do you believe that ethical behavior will pay off in the long run?

Answers will vary, but students should realize the importance of ethics in business.

2-10. Do you have your own guide to ethical behavior that you follow now? Will you use one of the guides from the text? If yes, which one and why?

Answers will vary.

2-11. Can ethics be taught and learned?

According to a study done at Harvard, the answer is yes; however, not everyone agrees. But most people realize that in learning about ethics and possible ethical situations, students are better prepared to handle ethics when the need arises on the job.

2-12. Do you believe that companies benefit from being socially responsible? Why or why not?

Answers will vary.

2-13. Do you believe that all businesses should go ―green‖? Why or why not?

Answers will vary.

Applying the Concept Answers Applying the Concept 2-1: The Internal Environment Identify the internal environmental factor underlying each statement.

A. Management and culture B. Mission C. Resources D. Systems process

E. Structure 1. ―Uber (transportation) got a lot of bad press based on sexual harassment and other internal problems.

A. Management and culture. The founding CEO was forced to step down, and Uber is working on improving its poor culture.

2. ―At Dunkin Donuts, we sell donuts, but we make more money on real estate by renting our facilities to franchisees.‖ B. Mission. Real estate is the actual purpose of the business.

3. ―The department of business under the School of A&S at Forest College is going to be expanded to become the School of Management.‖ E. Structure. Splitting a department changes the existing structure.

4. ―After a six-month search, the board finally hired a new CEO from our competitor.‖ A. Management and culture. There is a change in management.

5. ―At Big Y supermarkets we buy vegetables, cut them up, place them in bags, and sell them as salad.‖ D. Systems process. Inputs are being converted into outputs.

6. ―As the minimum wage continues to increase, Wendy‘s is buying machines to replace order takers.‖ C. Resources. Machines are a physical resource.

Applying the Concept 2-2: The External Environment Identify which external environmental factor is referred to in each statement.

A. Customers B. Competition C. Suppliers D. Labor force E. Shareholders

F. Society G. Technology H. The economy I. Governments 7. ―The owners of the company will get to vote on its being acquired or staying independent.‖ E. Shareholders. They own the company and may get a vote on issues like acquisitions and mergers.

8. ―Are you going to close that sale to Costco?‖ C. Suppliers. Costco is a resale/wholesale business that buys products from suppliers to resell.

9. ―If we don‘t get a four percent raise, the Teamsters union will go on strike at our company.‖ D. Labor force. Labor unions work to protect the labor force.

10. ―Animal activist groups pressured the Ringling Brothers circus to the point that it stopped having elephant acts in 2018.‖ F. Society. Pressure from an activist group reflects the feelings and attitudes of society.

11. ―KFC bought some bad chickens in China, and sales declined.‖ H. The economy. The decline in sales will impact the economy.

12. ―Our company was going to be sold to Sprint, but the government said that would be in violation of antitrust laws.‖ I. Governments. The government can stop mergers and acquisitions when it believes society will be harmed by the business transaction.

13. ―Tesla is working on software for its cars to be self-driven.‖ G. Technology. New software is a technology change.

14. ―LinkedIn and other social media websites took some of the traffic flow away from Facebook.‖

B. Competition. The social media websites compete with each other for viewers.

15. ―Since the recession ended, we have had an increase in sales, but revenues are still not above pre-recession levels.‖ H. The economy. Sales tend to go with the state of the economy; down in a recession and up during growth periods.

Applying the Concept 2-3: Strong and Weak Cultures Identify whether each statement reflects an organization with a strong or weak culture.

A. Strong culture B. Weak culture 16. ―It‘s hard to know if I need to follow the ethics code because managers act unethically every now and then.‖ B. Weak culture. When expected behavior is not clear, there is a weak culture.

17. ―Oh no. Do I really have to listen to the story about how the company founder Ted walked three miles in a snowstorm to deliver the package on time again?‖ A. Strong culture. Stories are a part of a strong culture.

18. ―Everyone in the department acts differently, so I guess I can just be me rather than trying to act in a manner acceptable to others.‖ B. Weak culture. Unclear values are an indication of a weak culture.

19. ―I started to tell this ‗dumb blond‘ joke and the other employees all gave me a dirty look, so I stopped.‖ A. Strong culture. The group is giving a ―dirty look‖ to convey that ethical jokes are not acceptable behavior. Employees enforcing behavior comes from a strong culture.

20. ―When I walked around the department during my job interview, I realized I‘d have to come to work in formal attire because all the women were wearing dresses or suits.‖ A. Strong culture. It appears that there is conformity with everyone dressing similarly. If some people wear jackets and ties and others don‘t, it‘s optional and a weak part of expected behavior.

Applying the Concept 2-4: Level of Moral Development Identify each statement by its level of moral development.

A. Preconventional level B. Conventional level C. Postconventional level 21. Wo says to the customer, ―You can trust me not to sell you a stock that is not in your best interest.‖ C. Postconventional. Looking out for the clients‘ best interest is the highest level of moral development.

22. Jean says, ―I‘ve never had a drink on the job, but I‘ll take a shot of that whiskey with you guys.‖ B. Conventional. Jean is taking a drink to be accepted by peers.

23. Carl says to Lolo, ―There is no big deal in telling lies to customers. We are helping them buy a good product.‖ A. Preconventional. Carl is trying to convince Lolo that lying is okay.

24. Sandy says, ―I can‘t lie to customers because it is against my Christian religion; it is a sin to lie.

C. Postconventional. The person is not lying because of religious beliefs.

25. Latavia says to John, ―You‘re not selling as much as the rest of us. You really should lie to customers like we do. If the boss asks why you aren‘t selling as much as the rest of us, you better not tell him we lie, or you will be sorry.‖ B. Conventional. Latavia is using peer pressure to get John to be unethical.

Applying the Concept 2-5: Ethical Approach Identify each statement by its approach to making ethical decisions.

A. Golden rule

B. Four-way test C. Stakeholders' approach D. Discernment and advice E. Code of ethics F. Foreign Corrupt Practices Act (FCPA) 26. ―I try to treat people the way I want them to treat me.‖ A. Golden rule. This statement is essentially saying ―Do unto others as you would want them to do unto you.‖ 27. ―Cindy, what do you think of my decision for handling this situation?‖ D. Discernment and advice. The person is considering if the decision is ethical and getting advice to determine if it is.

28. ―Clark, you can‘t offer the Saudi Prince a BMW M3 car if he buys our product; it‘s illegal.‖ F. FCPA. It is against the law to offer bribes to foreign officials.

29. ―I‘m a member of Rotary International, so I use its approach when I make decisions.‖ B. Four-way test. The Rotary approach is the four-step method.

30. ―I follow the guidelines the company gave all of us to use to make sure I‘m doing the right thing.‖ E. Code of ethics. Companies have codes of ethics for all employees to follow.

31. ―Joel, it‘s against my religion to lie, so I will not lie for you. Would you want me to lie to you?‖ A. Golden rule. It is a religious guide.

32. ―I try to make sure that everyone affected by my decisions gets a fair deal.‖ C. Stakeholders' approach. The person is trying to create a win-win situation for all stakeholders involved.

Join the Discussion Answers Join the Discussion 2-1: Downsizing and Part-Time Workers As firms struggle to compete in the global economy, many have downsized. Downsizing is the process of cutting resources to get more done with less and thereby increase productivity. In some firms, the positions formerly held by full-time employees are filled by part-time workers.

Using part-time employees saves companies money because such employees do not receive any benefits (e.g. health insurance) in contrast to full-time employees who are entitled to benefits.

Walmart is known for maintaining a very high ratio of part-time to full-time employees as a way of keeping costs down. Walmart‘s employment policy is one of the reasons the chain can offer lower prices.

1. Is downsizing ethical and socially responsible?

Answers vary.

2. Is using part-time employees rather than full-time ones ethical and socially responsible?

Answers vary.

3. Would you be willing to pay higher prices at stores, such as Walmart, so that more fulltime workers could replace part-time workers?

Answers vary.

Join the Discussion 2-2: Sex, Profanity, and Violence The Federal Communications Commission has the power to regulate television broadcasts.

Advocates for more regulation (Parents Television Council and Mediawatch-UK) state that TV shows with violent acts, profanity, and sexual content should be shown later at night when children most likely will not be watching. For example, many Seinfeld episodes have sexual themes, and the show was not aired until 9:00 P.M., but now it‘s shown at all hours of the day.

Sex and the City, Family Guy, Keeping Up with the Kardashians, Impractical Jokers, and other shows with inappropriate content, sexual content, and violence are also shown at all hours.

Another related issue is that some advocates (both male and female) would like to stop or limit the portrayal of girls and women as sex objects and to show violence

against them on TV and movies, in songs and music videos, and video games?

They would like females to be portrayed as intellectuals that you would want to get to know as a person, not just as a sex object. Advocates believe that watching females portrayed as sex objects leads to a narrow view of the total person. Girls that aren‘t sexually attractive can have more negative self-perceptions, and boys can view girls simply as sex objects. Also, watching violence against females can lead to more violence against them.

However, advocates against regulation (National Coalition Against Censorship) don‘t want censorship at all, on the grounds that it violates free speech. They claim it‘s up to the parents and adults to restrict viewing TV and movies, listening to music and watching videos, and playing video games they don‘t approve of.

1. How does TV influence societal values? (Consider that many children watch as many as five hours of TV per day.)

Answers vary.

2. Do TV shows that include sex and violence reflect religious and societal values?

Answers vary.

3. Is it ethical and socially responsible to air TV shows with sexual content, profanity, and violence during hours when children are watching?

Answers vary.

4. Is it ethical and socially responsible to portray women as sex objects and to show violence against them?

Answers vary.

5. Should the FCC regulate the media, and if so, how far should it go? Should it make networks, music companies, and video games tone down the sex and violence, or have greater restrictions on content?

Answers vary.

Instructor Manual Chapter 3: Managing Diversity in a Global Environment Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

3-1. Classify a business you work for or have researched as domestic, international, or multinational. If the business is international or an MNC, list some of the countries in which it does business. (LO: 3-1) I worked for McDonald‘s, and it has restaurants all over the global village. The United States, all EU countries listed in the text, and Japan are example countries.

3-2. Do you try to buy American products? Should you? (LO: 3-2) I don‘t try to buy American. I look for the best product and price. No. Why should I buy American when I can get a better deal?

3-3. Give an example of how a domestic company benefits from trade barriers. (LO: 3-3) If the government puts a barrier on a product, like a Samsung smart phone, it will most likely cost more. This would give an advantage to Apple iPhones.

3-4. Explain how diversity is important to your current or past workplace. (LO: 3-5) I‘d say around 1/3 of our customers at Anthony Pizza are Black and Hispanic. Without their business, the place most likely would not be profitable.

3-5. First, state the types of diversity where you work(ed). Next, describe how it has affected you personally by being discriminated against, including being unfairly treated by being criticized or excluded in some way for being different in some way from the others.

(LO: 3-5) In my department, we have nine people. Ages range from around 35 to 65, there are 7 men and 2 women, everyone is White, without noticeable disabilities, one guy is Jewish and I think the rest

are Christian, and no one has come out as a homosexual. I‘ve been discriminated against because of my knowledge and skills. I‘m much more productive than the other employees, and it is not appreciated; I‘ve had to put up with aggravation because of it. Others have been given more resources from our department budget. A couple of them are jealous and hardly ever talk to me.

3-6. Give an example of cultural diversity you encountered, preferably at work. (LO: 3-6) I work in a U.S. factory. We have many Hispanics working there. Some can hardly speak English, so the diversity in language makes it harder to work with them. To help adapt, most of the supervisors can speak both English and Spanish, and they translate when necessary.

3-7. Select a company and identify as many of its global business practices as you can. (LO: 3-7) Amazon.com uses global sourcing of its books and other items it sells by having UPS deliver them globally. It also does some importing and exporting of the things its sells. It has its ereaders made by Foxconn. Amazon also has direct investments in subsidiaries in other countries.

Additional Work Application Questions (not in the book) 3-1. Would you be willing to pay more for the same product made domestically than made abroad? For example, if Nike made sneakers in America and sold them for $125 and made them abroad and sold them for $100, which would you buy? (LO: 3-3) Heck no. I want the low price to save me money.

3-2. Describe a company‘s policies and practices for promoting diversity, preferably a business you work(ed) for. (LO: 3-5) In my company, we do yard work, and the majority of the employees are of minority groups, mostly Hispanics. The owner hires the best potential workers, but if they don‘t work hard, they get fired regardless of race.

3-3. How do you feel about taking an international assignment? What countries would be more appealing to you? (LO: 3-4) I‘d like to go one of the major European countries, especially England because they speak English and I could get to see lots of countries from there. Because China is so important internationally, I‘d think about going there if it would definitely help me advance in my career

3-4. Select a business and identify how it uses global sourcing and/or importing and exporting. (LO: 3-7) I work for Bit Y supermarket and it imports produce from all over the world to have fresh stuff all year long.

3-5. Select a business you buy from that has a global license or franchise. (LO: 3-7) I have an old Starter Lions football jacket that it had a license to use from the NFL. 3-6. Select a business you buy from that used contract manufacturing to make your product. (LO: 3-7) I have an iPhone that was made in China by Foxconn and Nike sneakers, also made in China.

3-7. Select a business that uses strategic alliances, joint venture, and/or direct investment globally. (LO: 3-7) I have an iPhone that was made in China by Foxconn and Nike sneakers also made in China.

Review Question Answers 3-1. How are businesses classified in the global village?

Businesses in the global village are classified as domestic businesses, international businesses, or multinational corporations.

3-2. What are the four trade barriers?

The four trade barriers include embargos, quotas, subsidies, and tariffs.

3-3. What is the role of the World Trade Organization (WTO)?

The primary role of the World Trade Organization is to facilitate free global trade by setting and enforcing trade rules and agreements among its members.

3-4. What are the six major trade agreements?

The six major trade agreements are NAFTA, CAFTA-DR, UNASUR, EU, ASEAN, and APEC. 3-5. Which country has the foreign trade advantage based on exchange rates?

The country with the weak currency has the advantage in foreign trade.

3-6. What is the difference between diversity and affirmative action?

Affirmative action is purposeful steps to create employment opportunities for minorities and women, whereas diversity is broader in scope as it doesn‘t focuses simply on not discriminating against diverse groups and helping only some of them.

3-7. What is the glass ceiling?

The glass ceiling is the invisible barrier that prevents women and minorities from advancing to the top jobs in organizations.

3-8. When dealing with people with disabilities, what should be the focus?

The focus should be on the abilities people with disabilities have and matching them to jobs they are qualified to do.

3-9. What are three practices used to promote diversity?

The three practices are diversity training, mentoring, and diversity network groups.

3-10. What are the five dimensions of Hofstede‘s cultural diversity?

Power distance inequality versus power equality, individualism versus collectivism, assertiveness versus nurturing, uncertainty avoidance or acceptance, and long-term versus shortterm orientation 3-11. What is Project GLOBE? GLOBE stands for Global Leadership and Organizational Behavior Effectiveness, which is an ongoing cross-cultural investigation of leadership and national culture.

3-12. What are the nine dimensions of Project GLOBE? Answers should correspond to the dimensions outlined in Exhibit 3-7.

3-13. What is the difference between a license and a franchise?

In licensing, a licensor agrees to give a licensee the right to make its products or services or use its intellectual property for a royalty. In franchising, the franchisor licenses the entire business to the franchisee for a fee and royalties. With a license, you can essentially manage and run your business any way you want too. But with a franchise, you have to run the business the way the franchisor wants you to.

3-14. What is the difference among a strategic alliance, joint venture, and direct investment?

A strategic alliance is an agreement to share resources that does not necessarily involve creating a new company. A joint venture is created when two or more firms share ownership of a new company. Direct investment is building or buying operating facilities in a foreign country. So a strategic alliance is generally two companies helping each other, a joint venture is shared ownership of a new company, and a direct investment is generally considered wholly owning a subsidiary in another country.

3-15. What do international and multinational companies have in common?

They both should think globally but act locally by adapting products and services to the needs of the local marketplace.

3-16. If you were to start your own small business, would you most likely use contracting, strategic alliances, joint ventures or direct investment?

As discussed, small businesses are commonly international and are more likely to use contracting or a strategic alliance. They most likely don‘t have the money to make a joint venture or direct investment.

Assertiveness, future orientation, gender differences, uncertainty avoidance, power distance, societal collectivism, in-group collectivism, performance orientation, and humane orientation.

Communication Skills Answers 3-1. How does globalization affect your life and that of your family and friends?

Answers will vary.

3-2. Should people in the United States make an effort to buy products made in America?

If so, how should ―made in America‖ be defined?

Answers will vary.

3-3. Should your home country drop all or some of its trade barriers?

Answers will vary, but the trend is toward free trade.

3-4. Is the North American Free Trade Agreement (NAFTA) of more benefit or harm to the United States? Why? Answers will vary, but the text does say benefits are flowing back to the United States.

3-5. Should there be one global trade agreement rather than the six major agreements?

Answers will vary.

3-6. Should countries with a trade deficit create barriers to trade to eliminate the deficit?

Trade barriers tend to lead to retaliation by the other country, and running a trade deficit can be beneficial to the country.

3-7. Overall, are the effects of foreign trade more positive or negative for your home country?

Answers will vary, but as stated in the textbook, it should be positive for most people. However, if people lost their jobs to global outsourcing, they will most likely think it is negative for them.

3-8. How does diversity affect you personally? Do you really value diversity?

Answers will vary.

3-9. What experience have you had with each of the diverse groups?

I‘ve had to work with people of all ages, both males and females but mostly males, my best friend at work is a different race than I am, and there is a guy in the office in a wheelchair that I don‘t actually work with. I‘m not sure if anyone is religious around here. But the managers here are college grads with experience, whereas their employees don‘t have college educations, but several of have a lot more experience than the managers. Being in maintenance, we go to all the departments in the company when they need us.

3-10. How can you improve your awareness and empathy for diverse groups?

Answers will vary, but completing Self-Assessments 3-2 and 3-3 can help to identify areas that need improving, which can lead to a plan for change.

3-11. Identify mentors you have had in your life (relatives, friends, teachers, coaches, and managers) and how they helped you to succeed. Also, will you seek out a mentor(s) to help you advance in your career?

Answers will vary, but hopefully students have had positive mentor experiences and will seek them in the future.

3-12. Should expatriates be given global cultural diversity training, and should their families get training, too?

At the cost of a $1 million for a three-year international assignment, and with family adjustment to the new foreign culture being the most important factor in determining the success or failure of the international assignment, it seems like a good investment to offer training to the expatriate and family.

3-13. Is it too difficult and time consuming to engage in global sourcing?

Not really. With the internet, searching with technology is worth it because you can find the best deal globally.

3-14. Are smaller international companies at a disadvantage when competing with large multinational corporations (MNCs)?

Answers will vary, but generally the answer is yes and no. Internationals don‘t have the finances, but they can create very profitable niches in which to compete. Also, many of them provide products and services to MNCs, so they are actually cooperating or doing business with them rather than competing directly against MNCs.

Applying the Concept Answers Applying the Concept 3-1: Trade Barriers Identify the dimension of cultural diversity exemplified by each statement.

A. Embargo B. Quota C. Subsidies

D. Tariff 1. President Trump said the Chinese are not trading fairly with America, so he places a tax on imports to make Chinese products more expensive in the United States.

D. Tariff. The only barrier that is a tax is a tariff.

2. The Chinese Government is giving grants to its domestic car business.

C. Subsidies. Grants are one of the forms of subsidies.

3. The Japanese Government will not let us export any cars.

A. Embargo. Not allowing any imports is an embargo.

4. The Korean Government is raising our prices by place a tax on our exported cars.

D. Tariff. A tax is called a tariff in international trade.

5. The South African Government will only let us export 100 cars a year B. Quota. A quota is a set limited number of imports.

Applying the Concept 3-2: Diversity Stereotypes Identify the negative stereotype that tends to lead to discrimination.

A. Age and generation B. Gender C. Sexual orientation D. Race and ethnicity E. Disability F. Ability G. Religious H. Other 6. ―Chris is really bright. I‘m glad Chris is on my committee.‖ F. Ability. Being bright is an ability to perform well on the committee.

7. ―You‘re not going to promote that fag are you?‖ C. Sexual orientation. Fag is a negative stereotype for gay.

8. They are too emotional and moody monthly to be good managers.

B. Gender. This statement refers to women.

9. ―It‘s not fair to let Muslims take extra breaks and have their own prayer room.‖ G. Religious. Some people complain and are resentful when they believe others are getting special treatment they are not getting.

10. ―I just don‘t feel comfortable around the guy with a missing leg.‖ E. Disability. Feeling uncomfortable around people with disabilities is not unusual.

11. ―She‘s a dumb blond. The only reason Joe hired her is for her looks.‖ H. Other—attractive. Dumb blond is a negative stereotype of women (a gender), but she got the job because of her attractiveness.

12. ―You can‘t teach an old dog new tricks. Even though he has a lot less experience, teach him to run the new high tech machine.‖ A. Age and generation. It is a myth that older workers don‘t want to learn, and can‘t learn, new things.

13. ―You know those people just don‘t have the motivation to get a good education and advance.‖ D. Race and ethnicity. The negative stereotype myth refers to minorities.

14. ―You‘re not going to hire that fat guy are you?‖ H. Other. Fat is a negative term for over-weight people.

15. ―I‘m glad Linda is not in my department; she can‘t get along with anyone.‖ H. Other. Linda seems to have a personality that leads to conflict with others.

Applying the Concept 3-3: GLOBE Dimensions Identify the dimension of cultural diversity exemplified by each statement.

A. Assertiveness B. Future orientation C. Gender differences D. Uncertainty avoidance E. Power distance F. Societal collectivism G. In-group collectivism H. Performance orientation I. Humane orientation 16. The people in this country have one of the highest savings rates in the world.

B. Future orientation. Savings is a means to plan for the future.

17. Managers throughout organizations in this country focus on getting the job done through teamwork.

F. Societal collectivism. The focus on teamwork is more prevalent than the focus on individual work contributions.

18. People in this country are known to be difficult to negotiate with.

A. Assertiveness. Assertiveness is defined as confrontational and tough—this type of person would be difficult to negotiate with.

19. In some companies in this country, the male managers go around kissing the female employees good morning, and the women get the coffee for the male managers.

C. Gender differences. In some societies the roles of men and women are greatly varied.

20. The people in this country follow the football/soccer team closely as they take great satisfaction from watching their team in the World Cup. F. Societal collectivism. The preferred sports are team sports rather than individual sports.

21. Managers place great importance on status symbols such as having the executive dining room, reserved parking spaces, and big offices.

E. Power distance. Status symbols like separate dinning and parking represent and show power distance.

22. Managers don‘t really care about the safety of their employees and provide poor working conditions.

I. Humane orientation. Providing poor working conditions shows low caring toward people.

23. Employees get nervous and stressed when they even hear that changes are coming.

D. Uncertainty avoidance. They fear the uncertainty and uncomfortable feeling change brings.

24. Employees focus on constant small changes to make the products and processes better.

H. Performance orientation. The statement illustrates striving for improvements.

Applying the Concept 3-4: Global Practices Identify each practice as more likely to be used by large or small global companies:

A. Large MNCs B. Small international companies 25. Companies that develop a product in one country and then bring the product to other countries.

B. Small international companies. They do not usually have the resources to introduce/market the product globally.

26. Companies that only import and/or export to operate globally.

B. Small international companies. They don‘t have the resources to have their own facilities in other countries, so they tend to import and export.

27. Companies that have foreign nationals among their top-level managers.

A. Large MNCs. They have foreign nationals running direct investment facilities.

28. Companies that make their products in other countries.

A. Large MNCs. Small companies do not have the resources.

29. Companies that develop the latest technology through R&D.

A. Large MNCs. Small companies usually cannot afford to invest in R&D, so they quickly copy MNCs.

Applying the Concept 3-5: Forms of Global Business Identify which activity or form of global business is described in each statement.

A. Global sourcing B. Importing and exporting C. Licensing and franchising D. Contracting E. Strategic alliance and joint venture F. Direct investment 30. Philips in France makes TVs using speakers from Japan.

A. Global sourcing. This is using foreign resources/parts as part of its final product.

31. Tires R Us in the United States buys tires from Bridgestone in Japan for retail sale.

B. Importing and exporting. Buying foreign goods for sale is importing.

32. Chinese Alibaba buys a warehouse in America to distribute online orders in the United States.

F. Direct investment. Buying a building is a direct investment.

33. The American Children‘s Television Workshop gives a Chinese company the right to make its Sesame Street character puppets.

C. Licensing and franchising. Licensing involves allowing another country the right to use an asset.

34. Whirlpool makes its appliances in its factory in Russia.

F. Direct investment. This is a foreign subsidiary.

35. Dell assembles its computers in the United States and sells them online to people globally.

B. Importing and exporting. Selling computers in another country and shipping them is exporting.

36. Costco has a Canadian company make some of its Kirkland brand items for sale in its U.S. stores.

D. Contracting. The foreign firm only manufactures the product.

37. Wilson Sporting Goods buys the rubber for tennis balls from Brazil.

A. Global sourcing. This is using foreign resources/materials in a local product.

38. McDonald‘s makes a deal with an Italian businessperson to open a McDonald‘s in Rome.

C. Licensing and Franchising. This is giving a franchise.

Join the Discussion Answers Join the Discussion 3-1: Buy American You most likely have heard the slogan ―Buy American.‖ Many labor unions urge Americans to buy products made in the United States because that helps retain jobs for American workers. On the other hand, some Americans ask why they should buy American products if they cost more or their quality or style is not as good as that of foreign-made products. But as you‘ve seen, it isn‘t always easy for consumers to know the country of ownership of many products they buy.

1. Is it ethical and socially responsible to ask people to buy American?

Answers vary.

2. Is it ethical and socially responsible to buy foreign products?

Answers vary.

Join the Discussion 3-2: Speaking English The United States was once known as the ―melting pot‖ as people from all over the world came to the country and adjusted to its culture. In the past, generally, immigrants had to learn English to get a job. Today, however, many organizations hire people who can‘t speak English, and they use translators and have policies written in multiple languages for these employees. Government

agencies at the federal, state, and local levels are also providing translators and written materials in other languages.

1. Why are some organizations no longer requiring workers to speak English?

Answers vary.

2. Should a worker be required to be able to speak English to get a job in the United States?

Answers vary.

3. Is it ethical and socially responsible to refuse to consider hiring people who don‘t speak English?

Answers vary.

Join the Discussion 3-3: File Sharing Since the early 2000s, some peer-to-peer file-sharing networks and services have been targeted by music companies and an industry watch group, the Recording Industry Association of America, which represents musicians, for copyright infringement and shut down. The music companies complain that they are losing profits and that musicians are losing royalties as people download music for free, which violates copyright law. The RIAA also expanded into lawsuits against individuals. Movies, software, and other copyright material are also being illegally copied through file sharing (piracy).

According to the International Federation of the Phonographic Industry, piracy is a real problem as 95% of all music downloads violate copyrights. In many countries, because some governments don‘t have the desire or resources to enforce copyright laws, some governments even resist allowing companies to take legal action against companies and individuals.

1. Is it ethical and socially responsible for file-sharing companies to give people the means to download music, movies, or software for free?

Answers vary.

2. Is it ethical and socially responsible for people to download music, movies, or software for free, which prevents recording, film, or software companies and artists from getting any royalties?

Answers vary.

3. Is it ethical and socially responsible for countries to ignore and even resist enforcing copyright laws? Should all countries enforce copyright laws?

Answers vary.

Join the Discussion 3-4: Bribes An American businessperson working in a foreign country complained to a local telephone manager that the technician showed up and asked for a bribe before installing the phone. The businessperson refused, so the telephone worker left without installing the phone. The telephone company manager told the businessperson that the matter would be investigated, for a fee (bribe).

1. Is it ethical and socially responsible to pay bribes?

Answers vary.

2. Should the businessperson have paid the bribe to get the phone installed?

Answers vary.

Instructor Manual Chapter 4: Creative Problem Solving and Decision Making Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

4-1. Give an example of a poor decision made by a manager performing a management function. Explain the management function and the problem created by the poor decision.

(LO: 4-1)

Bill came to work around 5 minutes late one day. The manager decided not to say anything to him, rather than to use the controlling function. As the manager did not say anything, the next day Bill and Karen were both late. They figured that the boss wouldn‘t say anything to them.

However, the boss told them both in front of the group not to be late again.

4-2. Define a problem in an organization you work for or have worked for. Be sure to clearly distinguish the symptoms from the causes of the problem. (LO: 4-4) At our supermarket, sales are down. This is a symptom. The cause of the problem is the new supermarket that moved in across the street from us.

4-3. Identify some of the qualification criteria (college degree, years of experience, etc.) for jobs at an organization you work for or have worked for. Distinguish any ―must‖ and ―want‖ criteria. (LO: 4-5) I work at Figures and Fitness exercise salon. To be an exercise instructor, you must be a club member. Figures and Fitness always recruits from the members. The manager looks for members who are in excellent condition, are capable of leading efficient exercise classes, enjoy working out, and who interact well with other members—―must‖ criteria. The manager wants the instructors to be attractive—―want‖ criteria.

4-4. Give an example of how you or someone else solved a problem using the stages in the creative process. Be sure to list the steps and note whether illumination came during incubation or while working on the problem. (LO: 4-6) I‘m a member of the parish council at Holy Cross Church.

Step 1. Preparation: We were working on developing an organization chart so committee members would understand their responsibilities and working relationships. We did not finalize the chart at the meeting; instead, we were asked to think about it for the next meeting.

Step 2. Incubation and illumination: When I was driving home listening to the radio (incubation), how to better organize the chart came to me (illumination). When I got home, I made a revised chart.

Step 3. Evaluation: At the next meeting, I presented my new chart to the group. During the discussion, a few members recommended minor changes, which were made, and the final chart was accepted.

4-5. Give examples from an organization you work for or have worked for of decisions that might appropriately be analyzed using the quantitative techniques of break-even analysis, capital budgeting, linear programming, queuing theory, and probability theory. (LO: 4-8) McDonald‘s probably uses queuing theory to determine the number of checkout stations for the restaurant and linear programming to figure out how to set up the restaurant to optimize fast-food productivity.

Additional Work Application Questions (not in the book) 4-1. Describe a situation in which a job objective was not met. Identify the problem created and the decision made in regard to this problem. (LO: 4-1) I was working on an order to be shipped to a customer that day by mail. However, the order was not ready on time for the 3:00 p.m. mail pickup. At around 4:00 p.m. it was ready, so the manager told me to stop working and drive to the post office so that the order would go out that night.

4-2. Give an example of a programmed and a non-programmed decision faced by an organization you work for or have worked for, and describe the decision condition in each case. (LO: 4-4) A non-programmed decision at Costco Wholesale where I work was when it put in new checkout counters with computers that scan the products. Before the new scanners, one person would read off the numbers while another punched them into the cash register. As a stock person, I walk around and made programmed decisions by determining what products need to be placed on the shelves.

4-3. Give an example of a group decision made in an organization you work for or have worked for. Identify the advantages and disadvantages encountered by the group. (LO: 47)

We had a meeting to determine where the company picnic would be, what we would eat, and the activities that would take place. The group did not satisfice, the women tended to dominate, and groupthink was not a problem. I‘d say that the major disadvantage was the time wasted. I don‘t think the decision was any better; a simple, small committee could have done the whole thing just as well. On the other hand, there were more alternatives offered and people understood the decision. It‘s hard to say if people were more committed and motivated because the picnic is on company time and you have to go anyway.

4-4. Give examples of organizational problems for which brainstorming, nominal grouping, or consensus mapping would be appropriate techniques. (LO: 4-7) The gap management is always concerned about getting more sales. Displays are considered a primary source for increasing sales. I think the manager could have a brainstorming session with employees to try to come up with some ideas for more creative displays.

4-5. Give examples from an organization where you work or have worked of decisions that might appropriately be analyzed using the Kepner–Tregoe method and cost–benefit analysis. (LO: 4-8) The office continually upgrades the computers every few years. When managers make the next decision, they could use the Kepner–Tregoe method. My manager uses the cost–benefit analysis when she assigns us work. She mentally judges our strengths and weaknesses and delegates accordingly.

4-6. Give an example of a specific decision that you or your boss have had to make. Was the decision time driven or development driven? (LO: 4-9) Using Exhibit 4-11, select the appropriate decision style for the situation. Be sure to state the questions you answered and how (H or L) you answered each.

Review Question Answers 4-1. What is the relationship among the management functions, problem solving, and decision making?

All managers perform the same four functions: planning, organizing, leading, and controlling.

While performing these functions, managers must make decisions and solve problems.

4-2. Why is it necessary to determine the decision structure and decision-making conditions?

These are the determinants of how much time and effort you should expend on making a decision and when and when not to use the decision-making model.

4-3. What is the current trend concerning the use of groups to solve problems and make decisions?

The current trend in management favors increased employee participation.

4-4. Is a decrease in sales and/or profits a symptom or a cause of a problem?

They are symptoms that a problem exists; however, they do not tell you why sales and profits have decreased.

4-5. Would a maximum price of $1,000 to spend on a stereo be an objective or a criterion?

This is a ―must‖ criterion. The objective would be to buy a stereo.

4-6. Is there really a difference between creativity and innovation?

Yes. Creativity is a way of thinking that generates new ideas. Innovation is the implementation of a new idea. Creativity can lead to innovation.

4-7. What is the major difference between nominal grouping and consensus mapping?

Consensus mapping differs from nominal grouping because there can be no competitive struggle ending in a vote that may force a solution on some members of the group.

4-8. Why are generating and analyzing alternatives separate steps in the decisionmaking model?

Generating and evaluating alternatives at the same time tend to lead to satisficing and wasting time discussing poor alternatives rather than optimizing.

4-9. What quantitative techniques are commonly used to compare alternatives?

The five quantitative techniques are (1) break-even analysis, (2) capital budgeting, (3) linear programming, (4) queuing theory, and (5) probability theory.

4-10. When is the cost–benefit analysis commonly used?

The cost–benefit analysis is commonly used when it is unclear whether the benefit to be gained from an alternative is worth its cost.

4-11. When is the intuition commonly used?

Intuition is commonly used with programmed decisions under the condition of certainty to low risk.

Communication Skills Answers 4-1. Are problem solving and decision making really all that important? How do you rate your decision-making ability?

Answers will vary, but students should realize that the success (or failure) of a business is based on the decisions it makes.

4-2. Which potential disadvantage of group problem solving and decision making do you think arises most frequently?

Answers will vary.

4-3. Are creativity and innovation really important to all types of businesses? Is it important to evaluate a creative idea before it becomes an innovation?

Yes. If businesses want to attract and retain customers, they need continuous creativity and process/product innovations.

Yes. Businesses need to make sure the creative idea will be beneficial and feasible.

4-4. What is the role of intuition in decision making? Should managers use more objective or subjective intuition techniques when making decisions?

Intuition, the ability to synthesize information quickly and effectively, can help guide a wide range of critical decisions.

Answers will vary.

4-5. Have you ever used any of the techniques for analyzing and selecting an alternative? If so, which one(s)?

Answers will vary.

4-6. Should managers be ethical in their decision making? If so, how should ethics be used in decision making?

Yes. When performing the management functions, managers need to maintain high ethical standards and follow ethical guidelines.

Answers will vary, but the ethical guidelines discussed in Chapter 2 (golden rule, four-way test, and the stakeholders‘ approach to ethics) can all be used.

4-7. Have you or someone you know experienced escalation of commitment? If so, explain.

Answers will vary.

4-8. Do men and women make decisions differently?

Answers will vary.

4-9. Have you ever made a decision with information that was not timely, of good quality, complete, and/or relevant? If so, was the decision a good one? Why or why not?

Answers will vary.

Applying the Concept Answers Applying the Concept 4-1: Steps in Decision Making Identify the step in the decision-making model represented by each statement.

Step 1: ______ Step 2: ______ Step 3: ______ Step 4: ______ Step 5: ______ Step 6: ______ 1. ―Mary, what symptoms have you observed to indicate that a problem even exists?‖ Step 1. When defining the problem, you distinguish symptoms from causes of the problem.

2. ―That is a good idea, Tyson, but how are you going to put it into action?‖

Step 5. Plan the decision. Putting the idea into action requires a plan.

3. ―Good ideas, Tami and Carlos. Let‘s consider the odds of the success of each of your ideas.‖ Step 4. Odds of success is Probability theory; a technique used to analyze alternatives.

4. ―Now that we understand the problem, let‘s use the brainstorming technique to solve it.‖ Step 3. Brainstorming is a technique used to generate creative and innovative alternatives.

5. ―Raj, is the machine still jamming, or has it stopped?‖ Step 6. The manager is monitoring/controlling by checking to see if the problem is solved.

6. ―I don‘t understand what we are trying to accomplish here, Eddie.‖ Step 2. The objective is not clear.

Applying the Concept 4-2: Classify the Problem Classify the problem in each statement according to the structure and condition under which the decision must be made.

A. Programmed, certainty B. Programmed, uncertainty C. Programmed, risk D. Nonprogrammed, certainty E. Nonprogrammed, uncertainty F. Nonprogrammed, risk 7. Eric has to decide if he should invest in a new company in a brand-new industry.

E. Nonprogrammed, uncertainty. This is a first-time decision. With a new business, it is very difficult to determine the chances of success. Nonprogrammed, risk (F) is also a good answer because it is difficult to draw a clear line between risk and uncertainty.

8. Tina, a manager in a department with high turnover, must hire a new employee.

C. Programmed, risk. This is a recurring situation—high turnover. When hiring new employees, there is a chance that the new hires will not work out.

9. When Sean graduates from college, he will buy an existing business rather than work for someone else.

F. Nonprogrammed, risk. This is a significant, non-routine decision. With an established business, there is financial information that gives a probability of success. However, there is always the chance that the past will not repeat itself.

10. Rondo is making a routine decision, but being new, he has no idea what the outcome will be.

B. Programmed, uncertainty. This is not common but is an example because it does indirectly state programmed and uncertainty in the statement.

11. Sam, a small business owner, has had a turnaround in business; it‘s now profitable. She wants to keep the excess cash liquid so that she can get it quickly if she needs it. How should she invest it?

D. Nonprogrammed, certainty. This is a first-time decision. To keep the money liquid, she must go with a savings account, certificate of deposit, or money market type of investment with a set rate of interest.

12. Aidan, a purchasing agent, must select new cars for the business. This is the fifth time in five years she has made this decision.

A. Programmed, certainty. This is a recurring decision. With a new car you get a warranty, which makes the investment relatively certain that the car will do the job.

Applying the Concept 4-3: When to Use the Decision-Making Model Using Applying the Concept 4-2, for each situation 7-12 determine if the decision-making model or decision rules or policies and procedures should be used to make the decisions A. Decision Making Model B. Decision Rules or Policies and Procedures Note that in Applying the Concept 4-2, all the answers that are non-programmed are the answers for answer A. Decision-Making Model and the other answers are B. See 4-2 for details of answers.

13. A. Decision-Making Model 14. B. Decision Rules or Policies and Procedures 15. A. Decision-Making Model 16. B. Decision Rules or Policies and Procedures 17. A. Decision-Making Model 18. B. Decision Rules or Policies and Procedures

Applying the Concept 4-4: Using Groups to Generate Alternatives Identify the most appropriate group technique for generating alternatives in each situation.

A. Brainstorming B. Synectics C. Nominal grouping D. Consensus mapping E. Delphi technique 19. Management wants to expand the business by offering a new product but doesn‘t know what to offer.

A. Brainstorming. The group may come up with some creative ideas that might be good innovations.

20. Management wants to project future trends in the social media industry as part of its long-range planning.

E. Delphi technique. Projecting future trends calls for a forecasting technique.

21. Management at a video game maker wants to develop a new game. It calls in a consultant, who is leading groups of employees and children to come up with ideas together.

B. Synectics. Developing new video game requires generating novel ideas.

22. A department is suffering from morale problems, and the manager doesn‘t know why or how to improve morale.

D. Consensus mapping. Using consensus mapping to get group agreement on a solution to their morale problem would be ideal in this situation.

23. A department is getting new computers, and everyone has to get the same type: either a desktop, laptop, or tablet. The manager doesn‘t know which type to select for her 25 employees.

C. Nominal grouping. A voting technique would work fine for selecting computers with a large group.

Applying the Concept 4-5: Selecting Quantitative Methods Select the appropriate quantitative method to use in each situation.

A. Break-even analysis B. Capital budgeting C. Linear programming D. Queuing theory E. Probability theory 24. You are on vacation and want to get to a Walmart.

C. Linear programming. Most people will use a GPS, which is use with LP as stated in the examples of FedEx and Uber.

25. Burger King Manager Tania wants to even the workload in her fast-food restaurant. At times, employees hang around with no customers to wait on; at other times, they have long waiting lines.

D. Queuing theory. In a fast-food restaurant, when employees are overworked, there are lines of people waiting. When there are no lines, they are idle. Queuing theory would help the restaurant balance these two.

26. Taylor Rentals manager Matthew wants to know how many times a bounce house will have to be rented out to recoup the expense of adding it to the rental list.

A. Break-even analysis. If the owner pays $1,000 and rents them for $200, it takes five rentals to break even. To make it worthwhile to add a bounce house to the rental list, it would take more than five rentals to make a profit.

27. Machine shop manager Henry is scheduling which products to make on which machines next week.

C. Linear programming. The manager is trying to maximize the use of limited resources.

28. Candida, a lawn-care services sole owner/operator, must decide whether to repair her old truck or to replace it with a new one.

B. Capital budgeting. A truck for Candida is major capital equipment, and this is a fix or replacement of asset.

29. Trevor wants to invest money in commodities futures to make a profit.

E. Probability theory. Investments are usually made under the condition of high risk, especially in commodities. A simple technique is to assign probability of the investments going up or down, such as 50% or 85%.

Join the Discussion Answers Join the Discussion 4-1: Avoiding Taxes Many large corporations have an objective to pay less in taxes and are using corporate tax loopholes to avoid paying taxes. Walmart and Apple are such companies. Apple CEO Tim Cook was quoted in the press as defending Apple‘s tax-avoiding practices, which saved $44 billion in offshore income from 2009 to 2012. Apple also has three Irish subsidiaries that claim to have no residence anywhere for tax purposes.

It is not known just how many corporations are engaging in these kinds of activities. What is known, though, is that as these corporations continue taking advantage of corporate tax loopholes, the more taxes ordinary families and small businesses pay.

The U.S. federal corporate tax rate is the highest in the world, as high as 35 percent in early 2017, and most states and some local governments also impose taxes on corporate profits. President Trump said he wants tax cuts, which would

give less incentive to move jobs overseas and keep money in America. However, others claim that large profitable corporations should pay high taxes to help fund social programs, and the tax rate should not be cut.

1. Although it is legal, is it ethical for Apple, Walmart, and other corporations to take advantage of tax loopholes to avoid paying taxes?

Answers vary.

2. If you became CEO of one of these corporations, would you continue to take advantage of the tax loopholes? Why or why not?

Answers vary.

3. As an individual, do you or will you take advantage of tax loopholes, or pay more taxes than legally required by law?

Answers vary.

4. What is the government‘s role and responsibility regarding tax loopholes? What should the government do?

Answers vary, but the government sets the tax code and enforces it. Therefore, when there are problems, the government can change the law to prevent future problems. Again, with change you get winners and losers, and people fight for their own self-interest to win (or not lose something they already have). The trouble is that there are so many stakeholders looking out for their own self-interest pressuring law makers that it is difficult to change taxes.

5. Should the corporate tax rate be cut? If so, by how much?

Answers vary.

Instructor Manual

Chapter 5: Strategic and Operational Planning Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

5-1. Give an example of a strategic objective and an operational objective from an organization you work for or have worked for. (LO: 5-1) I worked for the Shawmut Bank in Boston, and one of its strategic objectives was to become the leading bank in Boston. In the operations department that I worked in, the operational objective was to process all the checks each night from all of the branches.

5-2. Conduct a simple five-force competitive analysis for a company you work for or have worked for. Use Exhibit 5-4 as an example. (LO: 5-1) I work part time for Springfield College.

1. Rivalry among competing sellers in the industry. The local rivalry includes Springfield College, American International College, Western New England College, and the University of Massachusetts, plus thousands of other colleges across the country.

2. Threat of substitute products and services. Substitutes are not a problem as most people want a degree.

3. Potential new entrants. New entrants are not very likely because most colleges are nonprofit and there is little incentive to start one.

4. Power of suppliers. I‘m not too familiar with suppliers, but I don‘t think they have much power.

5. Power of buyers. The student buyers number around 5,000, and they are not organized and have no direct power to set tuition prices.

5-3. Using the model for writing objectives, write one or more objectives for an organization you work for or have worked for, making sure they meet the ―must‖ criteria.

(LO: 5-3) To increase car sales by 5% by 2012.

5-4. State the grand strategy for an organization you work for or have worked for. (LO: 54) I worked part time for Sims Drug Store, an independent pharmacy. The grand strategy was a stability strategy. Sims was trying to keep customers from leaving for national chains in the area such as CVS and Walgreens. One advantage Sims had over its national competitors was free delivery of prescriptions.

5-5. Identify the adaptive strategy used by an organization you work for or have worked for. Be sure to describe how it used the strategy. (LO: 5-5) I used to work for Friendly‘s Ice Cream, which was sold to Hershey. When Hershey took over, it used a prospecting strategy. Hershey wanted to aggressively expand Friendly‘s across the United States. However, it sold Friendly‘s long before it achieved its objective.

5-6. Give an example of a policy, a procedure, and a rule from an organization you work for or have worked for. (LO: 5-6) I work at the New England Health Club.

Policy—―The club member is most important.‖ Procedure—―Fill out membership forms.‖ Rule—―No smoking allowed anywhere in the club.‖ 5-7. Review your time log to identify your three biggest time wasters. How can you cut down or eliminate these time wasters? (LO: 5-7) 1. Waiting for the machine to be set up. It takes three of us about an hour before the machine is ready to work. All we have to do is work faster; the job could be done in half the time without rushing. But, if we did, other employees would pressure us to slow down.

2. Waiting for about 20–30 minutes, and sometimes an hour, for the corrugator to be repaired. It breaks down about an average of twice per eight-hour shift. They should get new machines or overhaul them so they don‘t break down so often.

3. Breaks and lunch being extended by 10–15 minutes. This is a regular occurrence. The manager should keep track of times and enforce them.

Additional Work Application Questions (not in the book) 5-1. Does a business you work for or have worked for have one or multiple lines of business? List the line(s). (LO: 5-2) I worked as an intern for Honda in Connecticut, and I didn‘t realize it had all the various lines of businesses that they offer—cars, motorcycles, garden tillers, lawn mowers, snow blowers, snowmobiles, power generators, and outboard motors.

5-2. List a couple of the major strengths and weaknesses of an organization you work for or have worked for. (LO: 5-2) Springfield College‘s major strength is its small classes, which enable faculty to take a personal interest in students. Major weaknesses include the high cost of tuition versus state colleges and the deterioration of the area around the college.

5-3. State one or more goals of an organization you work for or have worked for. (LO: 5-3) At Domino‘s Pizza, our goal is to deliver the pizza within 30 minutes.

5-4. Identify any growth strategies used by an organization you work for or have worked for. Be sure to identify the type of growth strategy and note if any mergers, acquisitions, joint ventures, or strategic alliances were used. (LO: 5-4) In high school, I worked for an old, downtown movie theater that showed movies for $2 after the local mall ran them first run. There were two such movie theaters downtown. The two owners used a concentration strategy and merged and closed the theater I worked at to cut expenses.

There weren‘t enough people to fill one theater anyway. The second one closed down after around four years.

5-5. Identify one functional area of an organization you work for or have worked for. What was its operational strategy? (LO: 5-1) I work for the Springfield College Police Department. The strategy is to have student patrol and regular security guards visible to discourage any crime. The department has objectives, but it doesn‘t tell the student patrol about them. It just tells us what to do and where to go.

5-6. Give an example of a program you were involved in at work. (LO: 5-6)

At the New England Health Club, I developed individual exercise programs for members based on their pre-exercise tests and long-term fitness goals.

5-7. Describe a situation in which a contingency plan is appropriate. Explain the plan. (LO: 5-6) If you were planning a company picnic, you would need to set a contingency date, or place indoors, in case of bad weather.

5-8. From the time management techniques listed in the Self-Assessment, choose the three most important ones you should be using. Explain how you will implement each technique.

(LO: 5-7) 1. Get an early start on top-priority items. I need to stop procrastinating.

2. Make decisions. I need to stop overanalyzing things and make decisions sooner.

3. Do related activities in the same time slot. I plan to set up a calendar stating when I need to work on certain projects.

Review Question Answers 5-1. What are the five planning dimensions?

The five planning dimensions are: (1) management level, (2) type of plan, (3) scope, (4) time, and (5) repetitiveness.

5-2. What are the two types of plans?

The two types of plans are strategic plans and operational plans.

5-3. Is there a difference between a plan and a strategy?

A strategy is a plan for pursuing a mission and achieving objectives.

5-4. Which planning levels and their strategies are part of strategic planning?

Corporate- and business-level planning and their strategies are part of strategic planning.

5-5. What are the steps in the strategic planning process?

The steps in the strategic planning process are (1) developing the mission, (2) analyzing the environment, (3) setting objectives, (4) developing strategies, and (5) implementing and controlling strategies.

5-6. What is the relationship between the mission statement and developing strategies?

Developing the mission is the first step in the strategic planning process. The mission is the foundation of the other four steps in the strategic planning process.

5-7. Why is a company situation analysis part of the strategic planning process?

A company situation analysis is used at the business level to determine the strategic issues and problems that need to be addressed through the next three steps of the strategic planning process.

5-8. What is the ―writing effective objectives‖ model?

The ―writing effective objectives‖ model includes (1) the word to be followed by (2) an action verb, (3) a statement of the single, specific, and measurable result to be achieved, and (4) a target date.

5-9. What criteria should an objective meet?

An effective objective conforms to four ―must‖ criteria: It expresses a single result that is specific and measurable, and it sets a date for achieving that result. In addition to the four ―must‖ criteria, objectives may conform to three ―want‖ criteria: difficult but achievable (realistic), participatively set, and acceptance and commitment.

5-10. What are the grand strategies?

The grand strategies are growth, stability, and turnaround and retrenchment.

5-11. What is the difference between a merger and an acquisition?

A merger occurs when two companies form one corporation, whereas an acquisition occurs when one business buys all or part of another business.

5-12. What are the adaptive strategies?

The adaptive strategies are prospecting, defending, and analyzing.

5-13. What is the relationship between grand strategies and adaptive strategies?

The adaptive strategies (prospecting, defending, and analyzing) correspond to the corporate grand strategies of growth, stability, and combination, respectively.

5-14. What are the competitive strategies?

The competitive strategies are differentiation, cost leadership, and focus.

5-15. What are the common functional strategy areas?

The common functional strategy areas are marketing, operations, human resources, and finance.

5-16. What is the difference between standing plans and single-use plans?

Standing plans are policies, procedures, and rules developed for handling repetitive situations.

Single-use plans are programs and budgets developed for handling nonrepetitive situations.

Single-use plans, unlike standing plans, are developed for a specific purpose and probably will not be used again in the same form.

5-17. Explain the use of a time log.

A time log is a daily diary used to analyze how time is spent and wasted. Time log analysis can reveal ways to improve time use.

5-18. List and briefly describe the three steps in the time management system.

The steps in the time management system are as follows: (1) Plan each week by determining the objectives to be achieved that week and activities necessary to achieve the objectives. (2) Schedule each week by selecting days and times to perform the activities necessary to achieve the week‘s objectives. (3) Schedule each day by selecting the times to perform the activities to achieve the week‘s objectives. Going from a weekly to a daily schedule allows for adjustment for unplanned events.

Communication Skills Answers 5-1. Why are strategic and operational planning important?

Answers will vary, but students should realize the importance of planning. Planning includes four major benefits: enhanced product and venture development, speedier decision making, better management of resources, and clearer identification of the action steps needed to reach important goals.

5-2. Should all businesses have corporate, business, and functional strategies?

No. A business with only one line of business does not need a corporate strategy.

5-3. Should a mission statement be customer focused?

Yes. The entire business, including the mission statement, should focus on customer value.

5-4. Should all businesses formally analyze the environment?

Answers will vary, but students should realize the importance of analyzing the environment and how it determines how congruent the business strategy is with the capabilities of the firm and its external environment.

5-5. Should all businesses have a competitive advantage?

Answers will vary.

5-6. Is it ethical to copy other companies‘ ideas through benchmarking?

Yes. It‘s the American way, as long as companies don‘t illegally break trademarks, patents, copyrights, etc.

5-7. Are both goals and objectives necessary for a business?

Yes. Businesses should start with general, broad targets and then translate these into measurable terms.

5-8. Is it important to write objectives?

Yes. Writing objectives helps to make sure they meet the criteria of being effective, and it improves commitment to their attainment. Research studies have revealed that a majority of successful people have written objectives.

5-9. As a manager, would you use management by objectives (MBO)?

Answers will vary.

5-10. Which growth strategy would you say is the most successful?

Answers will vary, but students should realize that there is no one best approach to management and that whatever strategy is used depends on the situation.

5-11. Why would a business use a focus strategy rather than try to appeal to all customers?

Trying to be all things to all people often creates customer value for none of them. For example, how many restaurants do you know of that serve Italian, French, Chinese, and Mexican foods?

By focusing on one type of food, the restaurant will usually create greater customer value.

5-12. Give examples of functional departments other than those mentioned in the text.

Answers will vary.

Applying the Concept Answers Applying the Concept 5-1: Objectives For each objective, state which ―must‖ criterion is not met.

A. Single result B. Specific C. Measurable D. Target date 1. To complete the project within two weeks.

D. Target date. Two weeks is NOT a date. When is it due? It is more effective to set a specific date than to give a time span.

2. To be perceived as the highest quality hotel in the Tri-State by the end of 2030.

C. Measurable. How will you know if you are perceived as the best?

3. To write objectives next week.

D. Target date. It is more effective to set a specific date than to give a time span.

4. To double profits in Mexico.

D. Target date. By when will the objective be met?

5. To sell 10% more nachos and 5% more beer at the hockey game on February 20, 2020.

A. Single result. The objective should contain only one product.

6. To increase sales in 2030.

B. Specific. Sales are measured in the income statement, so the missing criteria is ―By how much do you want to increase sales by—$1, $100, $1,000?

Applying the Concept 5-2: Growth Strategies Identify the type of growth strategy described by each statement.

A. Concentration B. Related diversification C. Forward integration D. Unrelated diversification E. Backward integration 7. PepsiCo‘s Sprite soda buys lemon and lime groves.

E. Backward integration. Sprite is a manufacturer going backward to supply its own lemon and limes to flavor its soda.

8. Dell computer starts making printers.

B. Related diversification. Computers and printers are related product lines often sold together.

9. Home Depot acquires a tool manufacturer to make its own brand name tools.

E. Backward integration. This is going from retail back to manufacturing.

10. Facebook buys Toys ―R‖ Us. D. Unrelated diversification. Retail toy stores are very different lines of businesses.

11. Apple opens a new Apple Store in a mall.

A. Concentration. This is growth within the same line of business.

12. Tesla starts opening its own dealerships to sell its cars.

C. Forward integration. This is going from manufacturing to retailing.

13. New Age Diamond Mines starts to cut its stones into diamond shapes for jewelry.

C. Forward integration. This is a raw material company going forward to manufacturing by cutting the stones to be sold to retail jewelry stores.

14. Pizza Hut opens one of its fast-food restaurants in China.

A. Concentration. Opening another Pizza Hut is staying in the same line of business.

15. Netflix acquires a small upscale restaurant in New York.

D. Unrelated diversification. Video rentals and streaming and restaurants are not related products.

16. Boeing buys the Johnson Custom Jets company.

B. Related diversification. A large aircraft maker buying a smaller size plane company is related.

Applying the Concept 5-3: Adaptive Strategies Identify the type of strategy represented in each statement.

A. Prospecting B. Defending C. Analyzing 17. Dell pioneers a laptop-powered computer that can be folded up to the size of a smartphone.

A. Prospecting. As pioneers, Dell would be prospecting.

18. Domino‘s used this strategy after Pizza Hut started to copy delivering pizza.

B. Defending. Domino‘s Pizza tried to keep its customers.

19. This is the primary strategy of Walmart in the saturated U.S. market as the number of dollar stores increased.

B. Defending. Walmart tried to keep its customers.

20. When McDonald‘s came out with a new Angus Burger to compete with Burger King‘s successful Angus Burgers, it was using this strategy.

C. Analyzing. McDonald‘s is following the lead of Burger King, who was the prospector.

21. 7-Eleven expands globally by opening stores in Vietnam.

A. Prospecting. Going to new markets is aggressive growth

Applying the Concept 5-4: Competitive Adaptive Strategies Identify the type of strategy represented in each statement.

A. Differentiation B. Cost leadership C. Focus 22. Dollar General variety store B. Cost Leadership. It offers low priced items.

23. Nike sports apparel A. Differentiation. Its Nike swoosh is on all its products.

24. Nickelodeon TV network

C. Focus. Nick has children‘s shows.

25. Anytime Fitness exercise gym A. Differentiation. It‘s open 24/7/365.

Applying the Concept 5-5: Identifying Plans Identify the type of plan exemplified by each statement.

A. Policy B. Procedure C. Rule D. Program E. Budget 26. At Ford, quality is job one.

A. Policy. It doesn‘t say how to do a quality job.

27. A helmet must be worm on the football field.

C. Rule. It tells you specifically what to do.

28. Forms for a leave of absence must be filled out, approved, and signed by the supervisor, and submitted to the HR office one month in advance of the planned leave.

B. Procedure. It tells you how to proceed: (1) Fill out the form, (2) have it approved and signed by the manager, and (3) submit it to the personnel office one month in advance of the effective date.

29. We follow the ―Humanics Philosophy‖ at Springfield College.

A. Policy. This is a general guide. No information is given on how to implement the policy.

30. We will make a driverless car within five years.

D. Program. This was a set of activities intended to accomplish an objective of making a driverless car over a specified number of five years.

31. Here is an Excel sheet describing how much I need to run my division next year?

E. Budget. The statement requests a budget. Excel is commonly used for budgeting.

Join the Discussion Answers Join the Discussion 5-1: Objectives Objectives should be difficult but achievable. However, Wells Fargo & Co. is considered to have created objectives that were too difficult and led to bank employees feeling pressured by the quotas and managers‘ pressure to meet the objective. The pressure resulted in employees creating new accounts that customers never asked for to either keep their jobs or to get more sales commissions that resulted in overdraft fees for customers. The government imposed a fine of $185 million, and CEO John Stumpf retired.

Mary Mack, Head of Community Banking, was charged with coming up with a new incentive system that didn‘t result in unethical or illegal activities of its 100,000 retail-bank employees at around 6,000 U.S. branches. Mack said Wells Fargo won‘t abandon cross-selling, or efforts to sell multiple products to individual households, which was seen as contributing to the misconduct.

1. If you were a manager at Wells Fargo, would you pressure employees?

Answers vary.

2. Would you fire employees who didn‘t meet the difficult quotas?

Answers vary.

3. As an employee, would you give in to the pressure and use unethical/illegal practices to meet the quotas in order to keep your job?

Answers vary.

4. As an employee, would you use unethical practices to exceed the quotas in order to make more money?

Answers vary.

5. Would your answers to questions 3 and 4 change if you knew it was common practice of your coworkers to use these techniques and encourage you to do the same things? How about if there was peer pressure to also use the tactics?

Answers vary.

Join the Discussion 5-2: Insider Trading Insiders are people who have confidential information about upcoming events that will affect the price of a stock. It is common for the price of a stock to go up when investors learn that the company is negotiating a merger or acquisition of another company. Insiders are not supposed to buy or sell any stock they have confidential information about or to tell anyone this information to avoid illegal profit from stock dealing. This process, known as ―tipping,‖ is illegal. However, many government public officials have access to insider information and legally get rich from tipping.

1. If you were ―tipped‖ by an insider, would you buy/sell the stock?

Answers vary.

2. What are the implications of using insider information? Is anyone hurt by the practice?

If yes, who is hurt, and how are they hurt?

Answers vary.

3. Without using insider information, some speculators try to predict which companies are likely to merge or be acquired and buy stock options. This is a legal way of making money, but is it ethical?

Answers vary.

4. Is it ethical for government officials to use insider information to make money?

Answers vary

Instructor Manual Chapter 6: Managing Change, Innovation, and Entrepreneurship Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

6-1. Give an example of an innovation from an organization you work for or have worked for. Be sure to specify whether it was a product innovation or a process innovation. (LO: 61) I work for the Friendly‘s Ice Cream training department. Friendly‘s always maintains its technical skills training, but it updates its people skills training and development. For example, it didn‘t used to offer diversity training, but now it does. This is an internal product innovation.

6-2. Does an organization you work for or have worked for have any of the six characteristics of innovative cultures? Overall, does the organization have a creative culture? (LO: 6-2) I work at a large supermarket and stock shelves. As far as I know, management does not encourage risk taking and has no intrapreneurship methods. Overall, I would say that it does not have a very creative culture.

6-3. Give an example of a situation when you resisted a change. Be sure to specify which of the six reasons fueled your resistance to change. (LO: 6-3) I was resistant to using Microsoft Office because of uncertainty and learning anxiety. I was happy with the old system of using WordPerfect and Lotus.

6-4. Give an example of one or more OD interventions used in an organization that you work for or have worked for. (LO: 6-4) The company I worked for, Smith & Wesson, had an annual survey feedback, and during the year, it would work on specific problem areas within each department. It had a training department, which offered a variety of programs you could take voluntarily or if recommended by your department manager. The company had team building at the upper levels of the organization. At the middle level, it just offered a training and development course on how to develop your department into a team.

6-5. Are you interested in being an entrepreneur or an intrapreneur? What business would you like to start? (LO: 6-5) Yes. I‘ve been working in a restaurant for two years and someday I plan to open my own.

Additional Work Application Questions (not in the book) 6-1. Give an example of a force that resulted in a change in an organization you work for or have worked for. (LO: 6-1) At my restaurant, we had a technology change from the old-fashioned give the cook a handwritten order to a touchscreen computer ordering system.

6-2. Give one or more examples of a type of change you experienced in an organization you work for or have worked for. (LO: 6-1) When Microsoft Office‘s new version became available, my company bought copies for my department (technology change) and we took classes to learn how to use it (people change).

6-3. Does an organization you work for or have worked compete in a more incremental or discontinuous change environment? (LO: 6-1) I work at a local pizza shop and things don‘t change much. So I guess it is more incremental because it isn‘t discontinuous yet. Offering free delivery is one incremental change that helped increase sales.

6-4. Describe the intensity, source, and focus of the resistance to change you identified in Work Application 6-3. (LO: 6-3)

I was strongly resistant because of values pertaining to self. My feeling was, ―I like the way I do my job now, so why change?‖ However, I‘m glad I learned to use Microsoft Office because my job is now easier, and I have more skills to offer to help me get another job.

Review Question Answers 6-1. How do the four management functions relate to change?

When managers organize and delegate tasks, they often require employees to make some changes in their regular routine. When managers hire, orient, train, and evaluate performance, change is required. Leadership calls for influencing employees, often to change in some way, and control may require the use of new methods or techniques.

6-2. What is the difference between a change in strategy and a change in structure?

A change in strategy occurs at the corporate, business, and/or functional level. It can include going from a growth strategy to a turnaround and retrenchment strategy or from a prospecting strategy to a defending strategy, and so on. A change in strategy often results in a change in structure. A change in structure can include departmentalization, division of labor, changing the chain of command, or job simplification, and so on.

6-3. List the four areas of technology change.

The four areas of technology change are the systems process, machines, information process, and automation.

6-4. What are the two forms of change?

Change takes one of two broad forms: It is either incremental or radical.

6-5. What are the characteristics of an innovative culture?

The characteristics of an innovative culture are (1) encouragement of risk taking with intrapreneurship, (2) flexibility, and (3) open systems.

6-6. What are the two approaches to managing innovation?

There are two major approaches to managing innovation. There is the compression approach used during incremental change, and there is the experimental approach used during periods of discontinuous change.

6-7. What are the four stages in the change process?

The four stages in the change process are denial, resistance, exploration, and commitment.

6-8. What are the six major reasons employees resist change?

Employees resist change for six major reasons: uncertainty, learning anxiety, self-interest, fear of loss, fear of loss of control, and successful habits.

6-9. What are the three major focuses of resistance to change?

The three major sources are facts, beliefs, and values. Focuses of resistance to change are self, others, and work environment.

6-10. Explain the difference between team building and process consultation.

Team building is broader in scope than process consultation. Team building is an OD intervention designed to improve both how the work is done and how team members work together as they do the work (team dynamics). Process consultation is designed to improve team dynamics.

6-11. State the difference in the use of forcefield analysis and survey feedback.

Force field analysis is used by a small group to diagnose and solve a specific problem. Survey feedback uses a questionnaire filled out by a large group to identify problems; the group does not work together to solve a problem. Force field analysis can be used to solve a problem identified through survey feedback.

6-12. What is a new venture, and who starts it?

A new venture is a new business or a new line of business. Entrepreneurs commonly start a new small business venture. Intrapreneurs commonly start a new line of business within a large organization.

6-13. How do you define small business?

A small business is a business that is independently owned and operated, with a small number of employees and relatively low volume of sales.

6-14. What are competitive and first-mover advantages?

A competitive advantage specifies how an organization offers unique customer value. A firstmover advantage offers a unique customer value before competitors do so.

Communication Skills Answers 6-1. How does the systems effect relate to the four types of changes?

A change in one type may cause a change in another type. For example, technology change usually requires people change.

6-2. Which type of change is the most important?

Answers will vary. But people are the organization‘s most valuable resource.

6-3. Do you believe that organizational change today is more slow/incremental (calm-water canoeing) or radical (white-water rafting)?

Answers will vary. But global high tech tends to be more radical than low tech.

6-4. Do you consider yourself to be a creative and innovative person? Why or why not?

Answers will vary.

6-5. Would you prefer to work during a time of incremental or discontinuous change?

Answers will vary.

6-6. Which stage of the change process is the most difficult to overcome?

Answers will vary.

6-7. Which of the six reasons for resisting change do you believe is most common?

Answers will vary.

6-8. Which of the seven ways to overcome resistance to change do you believe is the most important?

Answers will vary.

6-9. Does creating urgency really help to get people to change? Give at least one example to support your position.

Answers will vary.

6-10. As a manager, which, if any, OD interventions would you use?

Answers will vary, but students should realize that they would need to at least train and develop their employees.

6-11. Would you rather work for a small or large business? Why? Answers will vary.

Applying the Concept Answers Applying the Concepts 6-1: Types of Change Identify the type of change in each statement: A. Strategy B. Structure C. Technology D. People 1. ―Jane, as HR director, I need you to get employees company-wide to be more open to changing faster to keep up with our competitors.‖ A. Strategy. Changing faster will take a change in culture, which is a strategy change.

2. ―Usain, we need to purchase the new machine to speed up production.‖ C. Technology. A new machine is an example of technology.

3. ―Tania, we are improving our smartphones by making the battery life longer.‖ C. Technology. This is an example of the systems process of transforming inputs (new, improved ones) into outputs.

4. ―Karl, did you hear we are implementing a retrenchment strategy by laying off 2,500 employees.‖ B. Structure. Layoffs of 2,500 will change the organizational structure.

5. ―Matt, we are going to have to focus on retaining our existing customers to stop losing them to Amazon.‖

A. Strategy. This is an example of a defending strategy.

6. ―Joseph, I‘d like you to get a college degree so you can advance into management positions with us.‖ D. People. Education is a form of training to improve an employee‘s skills.

Applying the Concept 6-2: Innovative and Noninnovative Cultures Identify the type of organizational culture described in each statement.

A. Innovative culture B. Noninnovative culture 7. ―Ryan, I tried to develop a better tasting cola, but people like the old taste better.

However, my boss gave me a very sincere thanks for trying.‖ A. Innovative culture. Employees are encouraged to try creative ideas and are not punished for failure in innovative cultures.

8. ―Chloe, Why is our boss so autocratic; always telling us all the details of how to do a new task without our input?‖ B. Noninnovative culture. This is an example of focusing on means rather than on ends.

9. ―Heidi, does your boss focus on having you follow the rules too?‖ B. Noninnovative culture. Closely following standing plans rather than flexibility stifles creativity.

10. ―Connor, our supervisor lets us do our jobs any way we want to, so long as we meet our objectives.‖ A. Innovative culture. Jobs autonomy is commonly used by innovative companies.

11. ―Ashley, when we come up with a creative idea, we have several levels of management that have to approve the innovation.‖ B. Noninnovative culture. Tall organizations tend to be bureaucratic with multiple levels of management to slow innovation.

Applying the Concept 6-3: Resistance to Change Identify the type of resistance to change in each statement.

A. Uncertainty B. Learning anxiety C. Self-interest D. Fear of loss E. Fear of loss of control F. Successful habits 12. ―Did you hear that the company is going to retrench and lay off 1,000 people and eliminate some departments, including ours? We have to fight it.‖ D. Fear of loss. A layoff will result in a loss of jobs and pay.

13. ―I don‘t think the new way is better. We really don‘t need to make this change, do we boss?‖ A. Uncertainty. The person is reacting defensively denying its better and questioning the need to change.

14. ―Did you hear that they now want us to log on when we get to and leave work, and even when we take breaks. Don‘t they trust us anymore? We need to fight this.‖ E. Fear of loss of control. The statement indicates loss of power, status, and control over their time.

15. ―It isn‘t fair to take away our sales commission and put us on salary only. This is going to result in my getting a pay cut.‖ C. Self-interest. Getting a pay cut goes against the person‘s self-interest.

16. ―Coach, I‘m batting .333 now and I‘m comfortable with my batting stance. Why should I change my batting stance?‖ F. Successful habits. The player believes in the current successful batting stance, so why change?

17. ―I like using Microsoft Office software. I don‘t want to change to Google software because I heard it‘s more difficult and it will slow down my work.‖ B. Learning anxiety. Using Google requires new learning, which is causing some anxiety resulting in temporary incompetency in slower work.

Applying the Concept 6-4: OD Interventions Identify the appropriate OD intervention for the change described in each statement.

A. Training and development B. Sensitivity training C. Team building D. Process consultation E. Forcefield analysis F. Survey feedback G. Large-group intervention H. Work design I. Direct feedback 18. ―Tony, when we install the new software, who is going to learn to run it?‖ A. Training and development. Training is the process of developing skills to be used on the job.

19. ―Chase, what intervention will we use to prepare our employees to put the product together as a group rather than each person continuing to produce one part of it?‖ C. Team building. Team building can help employees learn to work effectively as a group.

20. ―Liza, are you sure this intervention will work? Our team has a lot of conflict that is affecting how we get along as we complete the job.‖ D. Process consultation. It is used to improve team dynamics—how people interact as they work.

21. ―Hannah, what interventional can we use to make jobs more interesting and challenging for employees?‖

H. Work design. Job enrichment is used to make jobs more interesting.

22. ―Kent, our employees are often rude to each other. What intervention can we use to make them better understand how their behavior affects their coworkers?‖ B. Sensitivity training. It is used to ―teach people how their behavior affects others and how others‘ behavior affects theirs.‖ 23. ―Bella, is there an intervention we can use with small group together to figure out things that are holding us back from getting a higher product quality rating and what we can do to improve quality?‖ E. Forcefield analysis. The present quality rating is not high (center), the things holding us back are hindering forces (left) and the how to improve are the driving forces (right).

24. ―Jordan, I think we could benefit from using intervention that gets lots of employees from many departments and our key suppliers to discuss ideas on improving productivity.‖ G. Large-group intervention. Bringing together participants from all parts of the organization to improve productivity is essential the large-group intervention; it is the only organization wide intervention, and the only one listing outsiders—suppliers.

25. ―Winona, we need an intervention that can identify the employee morale problems so we can change the situation.‖ F. Survey feedback. A questionnaire can be used to gather data as the basis for change.

26. ―Emily, I‘ve been hearing a lot about social media marketing. Should we try it?‖ I. Direct feedback. An outside expert in this field can make a recommendation. After making the decision on moving to the net, other interventions (such as hiring an expert outsider or and/or training an employee) could be used to properly use it.

Join the Discussion Join the Discussion 6-1: Online High School There are high schools, including National High School, offering online courses and diplomas.

They tend to be attractive to individual-sport athletes, such as tennis players, golfers, and skaters

because they allow flexibility to train, travel long distances to compete, and do course work in between. Online courses also allow students to work at their own pace. Unlike public school, students pay to earn credits and don‘t have face-to-face, in-person contact with peers and teachers. Some of the online high schools are for-profit businesses making lots of money.

1. How do you feel about high school students missing the experience of attending traditional classes and socializing with their peers?

Answers vary.

2. How do you feel about students paying to earn a high school diploma online when they can earn one for free at a public school?

Answers vary.

3. Is it ethical and socially responsible to offer a for-profit online high school?

Answers vary.

Join the Discussion 6-2: Virtual Internships You are familiar with the traditional internship model, in which a student works at an organization to gain experience and perhaps a full-time job after graduation. With today‘s internet technology, more and more companies are hiring virtual interns, who work from their college computers. Virtual interns do a variety of tasks, including secretarial work, software and website development, and information technology projects. Most virtual interns never even set foot inside the organization‘s facilities.

Entrepreneurs Nataly Kogan and Avi Spivack cofounded Natavi Guides, a New York small business, in 2002, to publish guidebooks for students. Natavi hires virtual interns to write stories and locates people by posting openings with career offices at more than 30 universities nationwide. Kogan estimates that Natavi saved $100,000 in overhead during the first year in business by not having to furnish office space, computers, and other equipment to interns.

1. What are the benefits of virtual internships to employers and to interns?

Answers vary.

2. Should a student be given college credit for a virtual internship, or should he or she receive only pay without credit—a part-time job?

Answers vary.

3. Is it ethical and socially responsible to use interns instead of regular employees?

Answers vary.

4. Will the use of virtual interns become the norm, or will the practice fade?

Answers vary.

Instructor Manual Chapter 7: Organizing and Delegating Work Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

7-1. Follow the chain of command from your present position (or one you held in the past) to the top of the organization. Start by identifying anyone who reported to you, then list your boss‘s title, your boss‘s title, and on up to the top manager‘s title. (LO: 7-1) I worked as a teller for a bank, and no one reported to me. My boss was the head teller, and her boss was the branch manager. The five branch managers reported to the president.

7-2. Identify and explain your level of authority for a specific task in an organization. (LO: 7-2) Working as a mechanic at a gas station, I had the authority to report. My boss, the owner, would give me a job such as fixing the brakes. When I was done, the boss would check my work and take the car for a test drive.

7-3. Draw a simple organization chart for an organization you work for or have worked for. Identify the type of departmentalization and staff positions, if any. (LO: 7-3)

Answers will vary. What I usually do is draw the organization chart for my college. I begin with the president and ask if anyone knows her or his name. Then I ask who reports to the president. I follow the academic chain down to professors.

7-4. Describe how a job at an organization you work for or have worked for could be simplified. Be sure to specify if you are eliminating, combining, or changing the sequence of the job. (LO: 7-7) When I worked at Shore Co., I had to keep track of the present employees. We used to use lists of names for each department. However, with the high turnover rate, the lists were always a mess and had errors so we bought a big board that had magnets. We divided the board up into departments; then we put employees‘ names on magnets and put them in their departments. We ―eliminated‖ paper lists and ―combined‖ all the lists on one big board. It was a lot simpler to put new magnets up when employees were hired, move them to a new department when they were transferred, or take them off when they left.

7-5. Describe how a job at an organization you work for or have worked for could be expanded. Be sure to specify if you are using job rotation, job enlargement, or job enrichment and to be explicit about how the job is changed. (LO: 7-7) At the shipping warehouse, delegating more responsibility to employees could be, and should be, used for job enrichment to help keep employees from getting bored and going through the motions like they do. They could get rid of the production supervisor and use self-managed teams to get the job of making boxes done.

7-6. List three to five tasks you must complete in the near future and prioritize them using Exhibit 7-9. (LO: 7-8) 1. High priority: Greet the doctor‘s patients and bring them to the examining room with their folder. We try to get patients in and out as fast as we can.

2. Medium priority: File patient folders in the file cabinet. They can wait; however, if you wait too long, documents can fall out and get placed in the wrong files or get lost.

3. Low priority: Study for school. I can study at work, as long as there are no patients waiting or no folders to be filed.

7-7. How would you assess your use of multitasking in your personal life or in your professional life? How can you improve? (LO: 7-9) In my personal life, I multitask on a daily basis. When I get home from work, I usually watch TV or talk on the phone to one of my friends while I cook dinner. In my professional life, I have to multitask frequently. Many times, I have to work on two separate projects simultaneously when there is a deadline or talk on the phone with a client while I work.

7-8. Select a manager you work for or have worked for and analyze how well he or she implements the four steps of delegation. Which steps does the manager typically follow and not follow? (LO: 7-10) Step 1. Explain the need for delegating and the reasons for selecting the employee. Poor. I was never told this.

Step 2. Set objectives that define responsibility, level of authority, and deadline. Good. I know what had to be done by when, but the level of authority was not always clear.

Step 3. Develop a plan. Good. I had the authority and resources needed and usually the autonomy to do the job the way I wanted to.

Step 4. Establish control checkpoints and hold employees accountable. Fair. We did not have checkpoints very often. They would have helped some of the times when the boss said, ―This isn‘t what I asked for‖ at the end of the tasks when I would have to redo the work.

The supervisor almost always checked and evaluated my completed work and held me accountable.

Additional Work Application Questions (not in the book) 7-1. Identify your boss‘s span of management, or your own if you are or were a manager.

How many levels of management are there in your organization? Is it a flat or a tall organization? (LO: 7-1) At the bank, my head teller had around ten tellers, but only three to seven worked at any given time. There are three levels: president, branch managers, and head tellers. It‘s a tall organization for its size. They could get rid of the head tellers to flatten the structure.

7-2. Does an organization you work for or have worked for emphasize following the standing procedures or being flexible? Explain your answer. (LO: 7-2) The clothing store I work for emphasizes following standing procedures. I‘m in the situation listed in the book where people return merchandise. If I ever gave cash refund without a sales slip, I‘d be in big trouble.

7-3. Describe the type of authority (centralized or decentralized) used in an organization you work for or have worked for. (LO: 7-2) Cortney most definitely utilizes centralized authority. Not only are important decisions made by the president of this small company, but so are most decisions. For example, the company has about 70 employees, and the president has to interview new employees before they can be hired.

7-4: Identify one or more line and staff positions in an organization you work for or have worked for. Also, indicate whether the staff positions are general staff or specialist staff.

(LO: 7-2) One of the staff positions at the container company I worked for was the personnel director. He was a specialist staff who assisted the other department managers in recruiting and selecting employees. I got my job in production through the personnel office.

7-5. Describe how an organization you work for or have worked for uses, or could use, teams. Be sure to specify if the teams are integrated or self-managed. (LO: 7-7) I work in the training department of a supermarket. We train managers in several of the topics in this book. However, each course covers only one topic in one day and is taught by one trainer. I think they should integrate some of the topics to make combined courses so managers can see the interrelationship between the management functions. The new courses could be developed and taught by self-managed teams.

7-6. Describe an obstacle to delegation or sign of delegating too little that you have observed. (LO: 7-10) I worked in the office at Kennedy‘s and observed a supervisor who had the ―I can do it faster attitude‖ and poor delegation skills. Making things worse, the manager would sometimes start by trying to delegate and would give up and say, ―Oh, why don‘t I do this and you keep on with what you are doing?‖ The employee would not have a chance and would feel like an idiot.

Review Question Answers 7-1. What is the difference between unity of command and unity of direction?

The principle of unity of command requires that each employee should report to only one boss.

The principle of unity of direction requires that all activities be directed toward the same objectives.

7-2. What is the relationship between the chain of command and the span of management?

Chain of command is the clear line of authority from the top to the bottom of an organization.

The span of management refers to the number of employees reporting to a manager. The span of management in an organization is related to the number of its organizational levels, or its chain of command. The fewer employees supervised, the smaller or narrower the span of management.

The more employees supervised, the greater or wider the span.

7-3. What do the terms differentiation and integration mean?

Differentiation refers to the need to break the organization into departments, and integration refers to the need to coordinate the departmental activities.

7-4. What is the difference between responsibility and authority?

Responsibility is the obligation to achieve objectives by performing required activities. Authority is the right to make decisions, issue orders, and use resources.

7-5. Can accountability be delegated?

No. Managers are accountable for everything that happens in their departments. Managers delegate responsibility and authority to perform tasks but can never delegate accountability.

7-6. How does the scope of authority change throughout an organization and what is the flow of responsibility, authority, and accountability?

The scope of authority is a hierarchy that narrows as it flows down the organization.

Responsibility and authority are delegated and flow down the organization, whereas accountability flows up the organization.

7-7. What is the difference between general staff and specialist staff?

General staff works for only one manager and help the manager in any way needed. Specialist staff helps anyone in the organization who needs it.

7-8. What type of authority is needed to make decisions and issue orders down the chain of command?

Formal authority is needed.

7-9. What does an organization chart show? What doesn‘t it show?

An organization chart is a graphic illustration of the organization‘s management hierarchy and departments and their working relationships. It shows the formal authority or structure within an organization. An organization chart does not show the day-to-day activities performed or the structure of the informal organization.

7-10. What is the difference between product and customer departmentalization?

Product (service) departmentalization involves organizing departments around goods (or services). Customer departmentalization involves organizing departments around the needs of different types of customers.

7-11. What type of organizations commonly use functional departmentalization?

Small organizations tend to use functional departments.

7-12. What is the difference between a network structure and a virtual organization?

Networks are boundaryless interrelationships among different organizations. A network firm may be viewed as a central hub surrounded by a network of outside specialists that change as needed. A virtual organization is a continually evolving group of companies that unite temporarily to exploit specific opportunities or to attain strategic advantages and then disband when objectives are met. The virtual organization has no central hub, as each independent company gives up some control to temporarily become part of a new, larger organizational system.

7-13. What is job design, and why is it necessary?

Job design is the process of identifying tasks that each employee is responsible for completing.

Job design is crucial because it affects job satisfaction and productivity. Empowering employees to be involved in designing their own job motivates them to increase productivity.

7-14. What is the difference between an integrated work team and a self-managed work team?

Integrated work teams are assigned a number of tasks by a manager, and the team in turn gives specific assignments to members and is responsible for rotating jobs. Self-managed work teams are assigned a goal, and the team plans, organizes, leads, and controls to achieve the goal.

Usually, self-managed teams operate without a designated manager; the team is both manager and worker.

7-15. Why is the strength of employees‘ need for growth important to the Job Characteristics Model?

The core job dimensions, critical psychological states, and personal and work outcomes are all dependent on employee growth-need strength. The greater the employee‘s strength, the better the results are.

7-16. Why is it important to update priorities on a to-do list?

As time passes, medium- and low-priority tasks may become high-priority tasks. Also, new tasks come up and will need to be added to the list.

7-17. Explain what multitasking is and how to practice it effectively.

Multitasking is the practice or capability of handling more than one task at a time. Effective use of multitasking can be accomplished by applying various time management techniques such as organizing in advance, knowing when multitasking is appropriate, delegating, and limiting distractions.

7-18. As a simple guide, what one question can a manager ask to determine what and what not to delegate? ―Do I need to be personally involved because of my unique knowledge or skills?‖ This is the first priority-determination question. If the answer is no, delegate; if it is yes, don‘t delegate the task.

7-19. Why is each of the four steps in the delegation process necessary?

Step 1. Explain the need for delegating and the reasons for selecting the employee. It is helpful for an employee to whom you delegate a task to understand why the assignment must be completed and to realize the importance of the task.

Step 2. Set objectives that define responsibility, level of authority, and deadline.

Employees need to know what they are responsible for accomplishing and by when.

The level of authority needs to be specified to ensure that employees perform the task(s) to specification.

Step 3. Develop a plan. Without a plan, how can the objective be met?

Step 4. Establish control checkpoints and hold employees accountable. Without control checkpoints and accountability, employees may not accomplish the objective.

Communication Skills Answers 7-1. Does formal organizational structure really matter? In other words, shouldn‘t management just focus on getting the work done?

Yes. Formal organizational structure matters because the firm must be logically organized to achieve objectives.

7-2. How is division of labor (specialization of jobs) used in the medical profession and in schools? How does the restaurant industry use specialization?

In the medical profession, there are doctors and nurses and other specialty jobs. Teachers in many junior and senior high schools specialize in teaching one subject area. Many restaurants offer a limited menu often focusing on ethnic foods (Italian, Mexican, and Chinese food) or types of food (steak, seafood, and burgers and fries).

7-3. Is centralized or decentralized authority better?

Answers will vary. Students should realize that it depends on the situation and the company.

7-4. As firms grow, should they have division of labor and add staff positions? Give examples with your answer.

Generally, the answer is yes to both. For example, as firms add employees, they need to keep records for the firm and for the government for tax purposes. Doing so takes specialization and staff.

7-5. Historian Alfred Chandler suggested that structure should follow strategy. Should a firm develop the strategy first and then develop the organization structure? Why or why not?

Yes. If the structure doesn‘t match the strategy, how will the firm effectively implement it?

7-6. Matrix departmentalization violates the unity–of-command principle. Should companies not use matrix departmentalization?

Answers will vary. Students should realize that it depends on the company. Students should also take into consideration that although matrix departmentalization results in a major disadvantage when each employee has two bosses, it also has the advantage of flexibility and allows the enterprise to temporarily organize for a project.

7-7. What impact does technology have on organizational structure?

Answers will vary.

7-8. Why has there been a trend toward more team, network, virtual, and learning organizations? Is this a fad, or will it last?

Answers will vary.

7-9. When focusing on jobs, is it better to use job simplification or job expansion?

Answers will vary.

7-10. Are setting priorities and delegating really all that important?

Yes. As a manager, you‘ll be required to carry out several tasks at any given time. How you select the priority order in which these tasks will be completed will affect your success.

When managers delegate, they have more time to perform high-priority tasks. Delegation trains employees and improves their self-esteem; it is a means of enriching jobs and can result in improved personal and work outcomes.

Applying the Concept Answers Applying the Concept 7-1: Principles of Organization Identify which organizational principle or principles are represented by each statement.

A. Unity of command and direction B. Chain of command C. Span of management D. Division of labor E. Coordination F. Balanced responsibility and authority G. Delegation H. Flexibility 1. ―Tom told me to use his computer to get some information for him. But when I got to the computer, it was turned off, and when it booted up, I didn‘t have Tom‘s password, so I couldn‘t get the information.‖ F. Balanced responsibility and authority. The employee was not given the password; the assignment was delegated without authority.

2. ―Rachel handles all the accounts receivable transactions, and Ed does all the accounts payable transactions.‖ D. Division of labor. They specialize by business accounting functions.

3. ―I know it will be difficult to supervise 19 employees reporting to you, Jennifer, but by cutting two managers, we all have to take on more employees.‖ C. Span of management. The number of employees reporting to a manager is the span of management.

4. ―He is a good customer, Helen, so make him happy and ignore the rule and give him cash refund without the sales receipt.‖

H. Flexibility. Being allowed to breaking rules is being flexible.

5. ―To make your job more interesting, Andy, I‘m going to assign a new task to you.‖ G. Delegation. Assigning a new task is a delegation.

6. ―My department manager, Rick, tells me to do one thing, but my project manager, Betty, tells me to do something else at the same time. Whom should I listen to?‖ A. Unity of command and direction. Having two bosses violates the unity of command principle.

7. ―I need Carlos to do some research for me, but as a middle manager, I can‘t give an operative employee a direct order to do it. I have to have my supervisor, Christina, give Carlos the assignment for me.‖ B. Chain of command. The manager is following the downward chain of command.

8. ―The ambulance is on the way. Anita, call Dr. Rodriguez and have her get to emergency room A in 10 minutes. Aaron, prepare emergency room A. Juan, get the paperwork ready.‖ E. Coordination. The head nurse is coordinating the organization‘s resources through ordering or instructing employees to do their jobs rather than truly delegating new tasks to them.

9. ―As part of orienting new employees to our firm, we stress the importance of learning our mission statement so that it will guide you in doing your job.‖ A. Unity of command and direction. The mission statement provides the principle of unity of direction.

10. ―Here is a copy of our organization chart so that you can see our firm‘s formal organizational structure.‖ B. Chain of command. The organization chart shows the chain of command.

Applying the Concept 7-2: Levels of Authority Identify the level of authority in each of the situations below.

A. Authority to inform B. Authority to recommend

C. Authority to report D. Full authority 11. ―José, I need a new laptop. Please do some research giving me a list of competitive laptops and tell me which one you like the best.‖ B. Authority to recommend. Telling the best is a recommendation.

12. ―Kyle, you know your stuff, just handle the customer complaint as you think is best, and you don‘t need to get back to me on this.

D. Full authority. Although consulting the boss for advice, Ki was given full authority.

13. ―Ethan, please collect the job resumes HR sends over during the week and give them all to me on Monday at 10:00.‖ A. Authority to inform. The resumes are possible actions, but Hank has no say in who gets hired.

14. ―Kim, of the three job candidates, which one do you think is the best fit with our department members?‖ B. Authority to recommend. Asking for one of the three, Kim will give a recommendation to the boss.

15. ―Hi, Micheal. I‘d like you to meet Sunita. I hired her as the new administrative assistant for my department and I‘m orienting her. Sunita, this is my manager Micheal.‖ C. Authority to report. The manager hired Sunita with the input of the boss Tom, and is now reporting his new hire.

16. ―Brandon, your job is to show the potential customer the cars, answer their questions, and take them for a test drive. If they are interested in buying a car, bring them to me and I will handle the purchase.‖ A. Authority to inform. Eddie informs the boss of possible customers, but has no decision making authority.

Applying the Concept 7-3: Authority Identify the type of authority referred to in each statement.

A. Formal

B. Informal C. Centralized D. Decentralized E. Line F. Staff 17. ―Jackson, we need to meet to revise your proposed budget. Please meet me in the accounting department at 10:00 tomorrow.‖ F. Staff. Accounting is a staff department that advises budgets in all departments to create a master budget.

18. ―Kyle, you know your stuff, just handle the customer complaint as you think is best and you don‘t need to get back to me on this.‖ D. Decentralized. The manager is letting Kyle make the decision.

19. ―I like your creative idea for a new product. I‘ll talk to the boss, and if Jamal likes it, he‘ll let us present the idea to his boss.‖ A. Formal. They are following the formal chain of command.

20. ―When I recommend good sales rep job candidates to the marketing manager, I get angry when Alyssa does not hire them.‖ F. Staff. This is a human resources staff person who is advising and assisting with hiring for the marketing department.

21. ―Everyone throughout the organization is encouraged to share information and knowledge with everyone else to get the job done.‖ B. Informal. Within the informal organization, people develop patterns of relationships and can communicate outside the chain of command.

22. ―It‘s time to stop making pencils and start making pens.‖ E. Line. This is a line manager giving production instructions to an employee.

23. ―Being a manager here is great because we have the autonomy to run the department the way we want to.‖ D. Decentralized. Having autonomy to run the department is decentralization 24. ―Don‘t forget—don‘t take any action until you check with me for my approval first.‖ C. Centralized. The higher level manager is going to make the decision—micromanagement.

Applying the Concept 7-4: Departmentalization Identify the type of departmentalization illustrated by each organization chart.

A. Functional B. Product (service) C. Customer D. Territory (geographic) E. Matrix F. Divisional 25. Proctor & Gamble (P&G)

E. Matrix. Three left activities are provided for all three divisions making it a matrix.

26. Chicago Counseling

B. Product (service). The company is a consulting firm. These are services it offers to its clients.

These are not internal functions.

27. Digital Age PC

C. Customer. The customers have different needs. The books sold to each type of customer are different.

28. Worldwide Marriage Encounters – UAS

D. Territory (geographic). These are departmentalized by geographic areas.

29. Latino International

F. Divisional. These are business units in a conglomerate structure.

30. Toys For U Production Department

A. Functional. These are internal activities within a functional area of production stages.

Applying the Concept 7-5: Job Designs Identify which job design technique is exemplified in each statement.

A. Job simplification B. Job rotation C. Job enlargement D. Job enrichment/Job Characteristics Model E. Work teams 31. ―Emma, I‘d like you to learn how to run the monthly budget reports for Kramer while he is on vacation.‖ B. Job rotation. The person will do his or her usual job, rotate to budgeting, and then rotate back to his or her usual job.

32. ―Sarah, I don‘t use the appendix information when I use the report, so don‘t include it anymore.‖ A. Job simplification. Not including the appendix eliminates work.

33. ―I‘d like you to work together to come up with ways to improve how your jobs get done.‖ E. Work teams. The manager is asking the department members to act as a team to redesign jobs 34. ―Jamal, would you like me to delegate a new task to you to make your job more challenging?‖

D. Job enrichment. Delegating challenging tasks is a simple way to enrich jobs.

35. ―You will be given $50 per day for meals when you travel, so you no longer need to provide receipts.‖ A. Job simplification. This is eliminating paper work.

36. ―Juanita, I want your job to be less repetitive. So, you will be trained to add a couple of new tasks to your job responsibility.‖ C. Job enlargement. Adding new tasks to a job is enlarging it.

Join the Discussion Answers Join the Discussion 7-1: Breaking the Rules Suppose you are a sales rep for a major pharmaceutical company. You get paid by commission, so the more drugs you sell to doctors, the more money you make. You know that sales reps in your company have been visiting doctors and telling them that if they prescribe your company‘s medication, they will receive 5% of the sales revenues. This arrangement can bring in thousands of dollars each year for both the sales reps and the doctors. You know the names of a few sales reps who are allegedly giving these kickbacks, but you are not sure how many sales reps are involved. You also don‘t know if sales managers know about the kickbacks or are receiving payments from the reps.

1. Is it unethical to be flexible and break the law against kickbacks?

Answers vary.

2. Why are kickbacks illegal? Who benefits from kickbacks, who gets hurt by them, and how?

Answers vary.

3. What would you do in this situation? (Would you start giving kickbacks yourself? Blow the whistle on sales reps to their managers? Blow the whistle to an outside source like the government or the media? Do nothing?)

Answers vary.

Join the Discussion 7-2: Delegating the Destruction of Documents Arthur Andersen, a consulting company, was taken to court for destroying evidence that could have been used in court to support allegations of illegal activities. Arthur Andersen destroyed evidence related to the auditing of Enron to protect both companies from being found guilty of engaging in illegal business practices. Arthur Andersen claimed that it was not trying to destroy incriminating evidence, but was simply destroying records, which is done periodically.

Destroying documents is, in fact, routine. The key question is this: ―What is being destroyed, and why is it being destroyed?‖ 1. Is it ethical and socially responsible to delegate the task of destroying documents that may potentially be used as evidence of wrongdoing?

Answers vary.

2. What would you do if your boss asked you to destroy documents and you thought the goal was to cover up evidence of wrongdoing by the firm? (Would you just do it? Say nothing but neglect to do it? Question your boss‘s motives? Look closely at what you were asked to destroy? Check with your boss‘s boss to make sure it‘s okay to do it? Tell the boss you will not do it? Tell the boss to do it? Blow the whistle to an outside source?)

Answers vary.

3. If you were charged with destroying evidence, do you believe it would be a good defense to say, ―I was only following orders‖?

Answers vary.

Instructor Manual Chapter 8: Managing Team Work Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

8-1. Consider your present or a past job. Did you work in a group or a team? Explain, using each of the six characteristics in Exhibit 8-1. (LO: 8-1) When I worked as a teller at the bank, I worked in a group. There were usually only three of us working at one time. The branch manager was the one clear leader. Tellers performed one clear job. We were held accountable, evaluated, and rewarded only on an individual basis. We had two major objectives: (1) keep the customers happy and (2) do not be over or under the cash balance.

8-2. Identify a group or team you belong to, and describe its size, composition, leadership, and objectives. (LO: 8-3) I work for a college. I‘m the secretary for the management and economics department, which is a command group with nine members. It is composed of six business professors, two economists, and one secretary. The department chair is the clear leader, but he uses a participative style. I‘m not aware of any specific objectives, other than to implement the mission, which is the humanics philosophy.

8-3. Identify at least two norms that developed in a group/team of which you were a member. Explain how you knew they were norms and how the group enforced those norms. (LO: 8-4) The group I‘m using is my sorority, which has seven members. Our group norms include arriving late for meetings, participating in weekly meetings, and respecting the group‘s objectives and individualities of members. I know they are norms because we never talk about them, yet we do them. Starting meetings late is a negative norm. The president and vice president enforce it. The other norms are positive. If people are not participating, others will usually ask for their input. When some members are not working toward the goals, other members will usually tell them to get the work done.

8-4. Recall a group from a present or past job. Identify the group‘s stage of development and the leadership style. Did the leader use an appropriate style? Explain what can be done to improve the group‘s structure and/or process. (LO: 8-5) At the bank I worked for as a teller, all the tellers had worked there for a couple of years, so we all knew our jobs. There was not much reason to interact while we were working, so I‘d say we were at the production level of development (stage 4). The branch manager basically left us

alone unless we had a question, about which she would be helpful and answer. I‘d say the leader‘s style was appropriate. The only thing I‘d change is how she dealt with tellers. When a teller was short for the day, the branch manager would be upset. People make mistakes; she could have been more understanding.

8-5. Think about the leadership style of a present or past boss. Did that person behave as a group manager or as a team leader? What made you classify the person this way? (LO: 86) At the factory I worked for, my boss was a group manager. I classify my boss as a manager because he did all the planning, organizing and staffing, leading, and controlling. The employees only made the boxes. Management never asked us about how to improve things.

8-6. Recall a meeting you have recently attended. Did you receive an agenda prior to the meeting? How well did the leader conduct the meeting? Give ideas on how the meeting could have been improved. Did the group have any problem members? How well did the leader handle them? (LO: 8-7) Our leader planned for the meetings by stating meeting objectives and what we needed to accomplish. Participants were identified and their assignments were clear. There was an agenda stating the time and place of the meeting, the discussion/activities that would take place during the meeting, and the order of priority in which these would take place. We actually voted together on what the leader recommended and if we didn‘t like it, we threw it out.

To improve our group, I would have used consensuses for decision making rather than voting.

When members were against the vote on an issue, they tended to do little, if any, work on the task. Sometimes we spent too much time fooling around, but it did help bring us closer together.

The only problem member we had was Dela; she did not help the group. The leader let her get away with not doing much; we did most of Dela‘s work. We should have pressed her to do her share of the work.

Additional Work Application Questions (not in the book) 8-1. Identify task groups used in an organization you work for or have worked for. Specify whether each group is a task force or a standing committee. (LO: 8-3)

In my junior year in college as a resident aide, I was on a standing committee—the class council.

We had officers who were changed every year.

8-2. Identify members of a group or team you have been on, and state the primary role each played in the group. (LO: 8-4) The group I‘m using is my sorority, which has seven members: (1) Sue, president (task and maintenance), (2) Karen, vice president (task), (3) Danielle, treasurer (maintenance), (4) Nicole, secretary (task and maintenance), (5) Nora, alumni representative (task), (6) Helen, pledge master (task), and (7) Dela, membership (self-interest).

8-3. Identify the level of cohesiveness in a group or team of which you are or have been a member. (LO: 8-4) I spent the summer working in a factory that makes boxes. My department was a highly cohesive group because there were only five of us. We were not homogeneous because three of us were of different races, but we all stuck together by joking around and going on breaks and sitting together at lunch.

8-4. Recall a group of which you were a member. List each member, including yourself, and identify each person‘s level of status within the group. Explain why each member had the level of status you identified. (LO: 8-4) The group I‘m using is my sorority, which has seven members: (1) Sue, president (high status), (2) Karen, vice president (high status), (3) Danielle, treasurer (medium status), (4) Nicole, secretary (medium status), (5) Nora, alumni representative (low status), (6) Helen, pledge master (low status), and (7) Dela, membership (low status). The office held has an effect on status, and coming to meetings and doing the work also affect status. Nora, Helen, and Dela do not do much of the work.

8-5. Give examples of team rewards and recognition where you work(ed). (LO: 8-6) Where I worked they had an annual awards dinner and gave out some awards.

Review Question Answers 8-1. Which are usually larger, groups or teams?

Groups are usually larger because they can have any number of members.

8-2. Which level of management has the most influence over organizational context?

Top-level managers have the most influence over organizational context; however, groups have the most influence over group structure, group process, and group development.

8-3. Is there an ideal group size?

There is no consensus on the ideal size for groups; the number varies depending on the purpose and situation.

8-4. Why is diversity important to group composition?

Generally, diverse groups are more productive than homogeneous groups.

8-5. Why are objectives important to groups?

Generally, groups with difficult but achievable, specific objectives are more productive than groups that have no objectives, easy objectives, or are just told to do their best.

8-6. How do groups enforce norms?

Groups enforce norms through peer pressure by ridicule, ostracism, sabotage, and physical abuse of the nonconformist(s).

8-7. Which type of group tends to terminate and which does not?

Command groups do not usually reach the termination stage unless there is some drastic reorganization. However, task groups do terminate.

8-8. Are the four functions of management important to both groups and teams?

Yes. The management functions are important but handled differently in groups and teams. In groups, the group manager takes responsibility for performing the four functions of management.

In teams, team leaders empower members to take responsibility for performing the management functions.

8-9. Why is it important to keep records of meeting assignments?

It is important to keep a record of meeting assignments because without accountability and follow-up on assignments, members may not complete them.

8-10. Describe the six types of problem members in meetings. How does each cause a problem to the group?

1. Silent types: They are a problem because they do not give input.

2. Talkers: They are a problem because they like to dominate the discussion.

3. Wanderers: They are a problem because they get the group off the task.

4. Bored members: They are a problem because they do not actively participate.

5. Arguers: They are a problem because they cause ongoing conflict that can be difficult to resolve.

6. Social loafers: They are a problem because they don‘t do their share of the work.

Communication Skills Answers 8-1. Is it really worth making a distinction between groups and teams? Why or why not?

Answers will vary.

8-2. Which part of the group performance model is the most important to high levels of performance? Why? Answers will vary; however, students should realize that performance is like a chain—any weak area holds back performance.

8-3. Select any type of group (work, school, sports) you belong or have belonged to. Explain how each of the group‘s five structure components affects or did affect its performance.

Answers will vary.

8-4. Select any type of group (work, school, sports) you belong or have belonged to. Explain how each of the group‘s six group process components affects or did affect its performance.

Answers will vary.

8-5. Are most team leaders really capable of determining the stage of group development and using the appropriate leadership style for the situation? Why or why not?

Answers will vary.

8-6. Based on your experience with meetings and what you have read and heard from others, which part of planning a meeting is most lacking?

Answers will vary.

8-7. Which type of group problem member is most annoying to you? Why? How can you better work with this type of group member in the future?

Answers will vary.

Applying the Concept Answers Applying the Concept 8-1: Group or Team Identify each statement as characteristic of a group (A) or a team (B).

A. A group B. A team 1. ―Ashley, I get the assembled product from Tina; then I paint it and send it to Jamal for packaging.‖ A. A group. Members are performing independent parts of the production process 2. ―Chloe, I‘d rather just get paid for my own output. I make more money with this current bonus system because I sell more than the rest of the sales reps.‖ B. A team. Teams tend to get some form of pay based on the team‘s performance. Groups are evaluated on individual performance, which this person is indicating a preference for.

3. ―There are ten people in my department, and we get along well.‖ B. A team. Teams have small numbers and share leadership.

4. ―Our boss is great. She lets us all participate in decisions.‖ B. A team. Teams have shared leadership.

5. ―Supervisor Hannah is the only one who conducts employee performance appraisals in our department.‖ A. A group. In teams, the members evaluate individual and group performance.

6. ―Your department has goals, Will; we don‘t. But we have been told to do the best we can to accomplish the company mission statement.‖

A. A group. General mission accomplishment is a characteristic of groups; teams have their own objectives.

7. ―Ethan, this job is boring. All I do is put the chip in and give it to you.‖ A. A Group. Members are performing independent parts of the production process

Applying the Concept 8-2: Types of Group Structure Identify the dimension of the group structure exemplified in each statement.

A. Formal group B. Informal group C. Functional group D. Cross-functional group E. Task force F. Standing committee G. Global virtual team 8. ―Kent, don‘t forget we have a Skype meeting with our England and German engineers at 6:00 our time today.‖ G. Global virtual teams. Members in England and Germany are in different places working together.

9. ―Taylor, I just got elected to serve a three-year term on the budgeting group.‖ F. Standing committee. Election to a budgeting group indicates that it is an ongoing group, so it would be a standing committee.

10. ―Juanita, some of our department members are going skiing next Sunday. Want to join us?‖ B. Informal group. Going skiing is not a formal group work activity.

11. ―Sarah, will you serve on the search group to select the new software program?‖ E. Task force. Once the software program is selected, the search group will discontinue.

12. Justin, our group consists of our sales manager and seven sales reps.

C. Functional group. All eight employees work in on limited area of sales.

Applying the Concept 8-3: Roles Identify the type of role exemplified in each statement.

A. Task B. Maintenance C. Self-interest 13. ―We are getting sidetracked talking about TV shows we like to watch.‖ A. Task. Getting the group back on track helps to get the job done.

14. ―I want to hear Kayla‘s idea before we make this decision.‖ B. Maintenance. Encouraging everyone to participate is not getting the job done; it helps to sustain group process.

15. ―So do we all understand the objective? Any questions?‖ A. Task. Clarifying the objectives helps to ensure that the job gets done correctly.

16. ―We tried your idea before you came to work here, Sandy. It did not work then, so it won‘t work now. Let‘s just do it my way.‖ C. Self-interest. Pressing for one‘s own ideas is not a task or maintenance role.

17. ―Tania‘s idea is better than mine. Let‘s implement her idea instead of mine.‖ B. Maintenance. Being willing to change ideas helps to sustain the group and prevents conflicts.

Applying the Concept 8-4: Group Process Identify the dimension of the group process exemplified in each statement.

A. Roles B. Norms

C. Cohesiveness D. Status E. Decision making F. Conflict resolution 18. ―Every time there is a disagreement, Aiden plays the peace maker to get the members to come up with some type of compromised agreement to keep the team moving forward on the task.‖ A. Roles. Although Aiden works on resolving conflicts (which is a good answer, but not the best) the focus is on playing the peace keeper—which is a maintenance role.

19. ―You‘re late, Sue. Everyone else was on time, so we started without you. Be on time for the next meeting.‖ B. Norms. This is an example of a group enforcing one of its norms.

20. ―What does this topic have to do with solving the problem we are working on?‖ A. Roles. This person is playing a task role to get the group back to work.

21. ―We do have occasional differences of opinion, Jon. But you will find out that we really get along well and enjoy working together.‖ C. Cohesiveness. The statement indicates how members stick together.

22. ―Let‘s stop the discussion and select one of these three insurance packages.‖ E. Decision making. Selecting an alternative is part of the decision making model.

23. ―That‘s a tough one. Go ask Kennedy; she knows more about the program than any of us.‖ D. Status. Kennedy is a high-status person owing to knowledge of the program.

24. ―Every time there is a disagreement Aiden tries to get the members to work out the problem.‖ F. Conflict resolution. A disagreement is a conflict and working through it as a group will help to resolve it.

Applying the Concept 8-5: Problematic Group Members Identify the problem type described in each statement.

A. Silent type B. Talker C. Wanderer D. Bored member E. Arguer F. Social loafer 25. Tony asks if anyone heard about their manager and the new guy she‘s dating.

C. Wanderer. Talking about gossip is getting off the subject.

26. ―Clarita, this looks like you just rushed through this to get it down without concern for giving us really good data for our team presentation.‖ F. Social loafer. This statement of poor quality work is characteristic of the social loafer.

27. Connor is thinking about his first date with a woman he met through an online dating service tonight.

C. Wanderer. His mind is wandering.

28. Kevin is usually reluctant to give his ideas, and when he does and is challenged, Kevin backs down easily.

A. Silent type. This statement is characteristic of the silent member.

29. Chris enjoys challenging members‘ ideas and getting them emotional so they will let him get his own way.

E. Arguer. Challenging ideas and making personal comments/attacks are characteristics of arguers.

30. Kim is always first or second to give her ideas. She is always elaborating in detail on others‘ ideas as well.

B. Talker. Kim talks a lot and dominates the conversation.

31. Sonia, one of the usually active group members, is sitting back quietly today for the first time. The other members are doing all the discussing and volunteering for assignments.

D. Bored member. A silent type does not start talking and then later get quiet. This usually active member is not participating for some reason; maybe a personal problem. Therefore, this member is most likely bored.

Join the Discussion Join the Discussion 8-1: Team Players JetBlue Airways is not structured around teams. However, teamwork skills and attitudes are important to the success of JetBlue. In fact, JetBlue screens job candidates extensively to make sure that they are team players.

1. Is it necessary to be a team player to be a successful employee at JetBlue?

Answers vary.

2. Is it ethical and socially responsible of JetBlue to reject job candidates because they are considered not to be team players?

Answers vary.

Join the Discussion 8-2: Norms Group members influence each other‘s behavior through the development and enforcement of norms, that is, essentially through peer pressure. In general, this process is positive as it helps get the job done. On the other side, complying with illegal or unethical norms can lead to disasters, as it did at Enron.

1. Should employees be able to ―do their own thing‖ without group enforcement of norms?

Answers vary.

2. Is it ethical and socially responsible for groups to develop and enforce norms? If yes, what type of ethical standards should a group have?

Answers vary.

Instructor Manual Chapter 9: Human Resources Management Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

9-1. Describe the kinds of interactions you have had with the human resources department of an organization you work for or have worked for. (LO: 9-1) When I applied for a summer job, I was a walk-in at the human resources department. I had a screening interview and took a test. I was later called in for an interview with the person who became my boss.

9-2. Have you or has anyone you know been asked discriminatory questions during the preemployment process? If yes, please explain the situation in language acceptable to all.

(LO: 9-2) I have not been asked discriminatory questions personally, but my friend was asked her sex and marital status on an employment application.

9-3. Have you or has anyone you know been harassed at work? If yes, please explain the situation in language acceptable to all. (LO: 9-3) My sister was sexually harassed by repeatedly being asked out by her male boss who was married. She reported it to the HR department and he was fired.

9-4. For the job considered in Work Application 9-3, were you given a realistic job preview? Explain. (LO: 9-5) Yes. When I was interviewed to work for McDonald‘s, the manager told me that I would be waiting on customers and cleaning up. Having been in McDonald‘s as a customer, I had a good idea of what it was like to wait on customers.

9-5. Identify which selection methods were used in the process of selecting you for a job you have now or one you held in the past. If a test was used, specify the type of test. (LO: 9-6) For my co-op job at the bank, I had to fill out an application form. I went through a screening interview with a personnel specialist. I did not take any test. The bank contacted the co-op director at the college for a background and reference check. I went to an interview with the department manager. I was offered and accepted the job.

9-6. What types of job interviews have you experienced? (LO: 9-6) When I went to the bank for a screening interview with a personnel specialist, I went through a semi structured interview. She asked me why I wanted the job, what my future plans were, etc.

The job interview with the department manager was unstructured. I believe he just wanted to get to know me to decide if he liked me or not.

9-7. Explain the training methods used to teach you how to perform your present job or a past job. (LO: 9-7) At my current job, the following methods were used:

Written material: My supervisor gave me information to read to familiarize myself with various projects and to see examples of the types of projects I‘d be writing.

Lectures: I got lectures from the project managers, directors, and the office manager.

Videotapes: They showed me a video describing the organization.

Question-and-answer sessions: This method was used the most.

I feel they did a great job. I would not change anything.

9-8. Describe the compensation package offered by your present or past employer. (LO: 98) I‘ve only had part-time jobs that paid wages on an hourly basis. I‘ve never received a salary, incentives, or any benefits.

Additional Work Application Questions (not in the book) 9-1. Complete a job analysis for a job you hold or held; write a simple job description and job specifications. (LO 9-5) Job description: Cashier, customer service, reports to Gail Cyr, manager, responsible for taking orders from customers, collecting payment from customers and making change, balancing the register at the end of the shift, and cleaning up during downtime.

Job specifications: Experience in retail sales, speak fluent English, high school graduate, competent with computerized register systems, and good people skills.

9-2. Identify the recruiting source used to hire you for your current job or one of your previous jobs. (LO: 9-6) I was hired for my job at the bank through educational institution recruiting. The bank called the co-op director and asked for an interested student. I applied and got the job. The bank also used internal recruiting (promotion from within) when I was asked to be a student manager, which I accepted.

9-3. Identify the types of questions you were asked during a job interview. (LO: 9-6) Closed-ended questions: Do you live in Springfield? Do you have a nursing license? Do you have a valid driver‘s license?

Open-ended questions: What brings you to visiting the Springfield Nurses Association? What can you see yourself doing for our association? What kind of experience have you had?

Probing questions: Can you give me an example? What kinds of problems did you encounter?

9-4. Identify the steps that were used when you were interviewed for a job. (LO: 9-6) During my job interview, four of the five steps were followed: Step 1. Open the interview. He opened the interview and developed rapport by talking about the weather.

Step 2. Present the realistic job preview. He gave me a very realistic job preview. He explained both the interesting and the boring parts of the job, and why they were important.

Step 3. Ask your questions. We both asked each other questions.

Step 4. Introduce top candidates to coworkers. I was not introduced to coworkers until after I was hired.

Step 5. Close the interview. He closed by thanking me for coming in and said that he would call me within a week to let me know if I got the job or not.

9-5. Recall an orientation you experienced. Which elements did it include and exclude?

Briefly describe the orientation. (LO: 9-7) One of my job orientations included all five elements. They told me about the firm and how it functions in general terms. Then, they went over my job duties and responsibilities in detail.

They also went over standing plans, such as what plans should be made. I had a tour of our office and of the state capitol. I was introduced to all the coworkers and went out to lunch with two of them. It was excellent. I would not change any of it.

9-6. Identify which steps of JIT your trainer used to train you for a present or past job.

Was the training conducted on or off the job? (LO: 9-7) My boss used Steps 2 and 4 only. He showed me how to do the task and asked if I had any questions. I said that I didn‘t, so he left me alone. He did check up on me now and then. My training was done on the job, and it was very short.

Review Question Answers 9-1. List the two major rules of thumb to follow during preemployment inquiries.

The two major rules of thumb to follow during preemployment inquiries are as follows: (1) Every question asked should be job-related. (2) Any general question that you ask should be asked of all candidates.

9-2. What is a bona fide occupational qualification (BFOQ)?

BFOQ is one that is reasonably necessary to normal operation of a particular organization.

9-3. What is a job analysis?

Job analysis is the process of determining what the position entails and the qualifications needed to staff the position.

9-4. What are the types of internal recruiting?

Two common types of internal recruiting are (1) promotions from within and (2) employee referrals.

9-5. What are the stages in developing employees?

The stages in developing employees include orientation, training and development, and evaluation.

9-6. What is the difference between training and development?

Training is the process of teaching employees the skills necessary to perform a job. Training typically addresses the technical skills of non-managers. Development is ongoing education to improve skills for present and future jobs. Development is less technical and is aimed at improving human, communication, conceptual, and decision-making skills in managerial and professional employees.

9-7. What is vestibule training?

Vestibule training develops skills in a simulated setting. It is used when teaching job skills at the work site is impractical.

9-8. How often should performance appraisals be conducted?

Performance appraisals should be an ongoing process, including both informal and formal sessions.

9-9. How is compensation used to both attract and retain employees?

Compensation is the total of an employee‘s pay and benefits. The pay level, the amount of salary/wages and incentives, and the number of benefits offered affect both attracting and retaining employees.

9-10. What types of organizations have labor relations?

Any organization that has a labor union has labor relations.

9-11. What is the difference between a mediator and an arbitrator?

A mediator is a neutral party who helps management and labor settle their disagreements. An arbitrator is different from a mediator in that the arbitrator makes a binding decision, one to which management and labor must adhere.

Communication Skills Answers 9-1. Why do you think that most organizations do not employ state-of-the-art HRM practices?

Answers will vary.

9-2. What is your opinion of the use of BFOQs? Answers will vary.

9-3. What is your opinion of using promotions from within as a recruiting source?

Answers will vary.

9-4. Do you agree that the job interview should be the primary criterion for selection?

Answers will vary.

9-5. What is the most common problem to avoid during interviewing?

Answers will vary.

9-6. If you work as a manager for a company with a HR department, does this mean that you don‘t have to orient and train employees? Explain.

No. The human resources department has staff authority to advise and assist, not to do the job for you.

9-7. What is your view of performance appraisals? How can they be improved?

Performance Appraisal Methods 9-8. What pay system do you prefer? Why is this your preference?

Answers will vary.

9-9. Why don‘t most employees realize how expensive benefits are and how much they contribute to compensation cost?

Both organizations and employees tend to take benefits for granted, and companies don‘t tend to educate employees about the cost.

9-10. Are unions greedy because they expect workers to receive more than they are worth, or is management greedy because it takes excessive salaries and gives too large a share of the profits to the owners?

Answers will vary.

Applying the Concept Answers Applying the Concept 9-1: Legal or Illegal Questions As stated in the text, remember, if the question is not relevant to the candidates‘ ability to do the job, it may be illegal and should not be asked.

Using the two major rules of thumb for preemployment inquiries and Exhibit 9-3, identify whether each question can or cannot be asked during a job interview.

A. Legal (can ask) B. Illegal (cannot ask during preemployment) 1. You have a different accent. What country are you from?

B. Illegal (cannot ask during preemployment). You can‘t ask about national origin, citizenship, or race. See Exhibit 9-3.

2. Have you ever worked under a different name?

A. Legal. You can ask if the person worked under a different name. Several women do change their names when they get married. See Exhibit 9-3.

3. So you want to be a secretary. How much do you weigh?

B. Illegal (cannot ask during preemployment). You can‘t ask about weight unless it is a BFOQ, which is not likely for a secretary.

4. So you want to work for The Gap, how much were you paid at Sears?

B. Illegal (cannot ask during preemployment). You can‘t ask how much the candidate was paid on the job. See Exhibit 9-3.

5. Are you a member of the National Guard?

B. Illegal (cannot ask during preemployment). You can‘t ask this question. What does it have to do with performing the future job? See Exhibit 9-3.

6. Who recommended that you apply to work at Zillow?

A. Legal. You can ask this question. See Exhibit 9-3.

7. How do you feel about unions?

B. Illegal (cannot ask during preemployment). Feelings about unions are not really job-related, but it is legal to ask about union membership when it is required to be a union member to get the job. See question 17.

8. What is your age?

B. Illegal (cannot ask during preemployment). This could be used to discriminate against older workers.

9. Did you ever get arrested for stealing on the job?

B. Illegal (cannot ask during preemployment). Students may say this question is tricky, and it is.

But the laws are very tricky and if you use the wrong wording, you can be asking for illegal information. You cannot ask whether the candidate has ever been arrested (an arrest does not prove guilt); however, you can ask whether the candidate has been convicted of a felony.

10. Do you own your own car?

B. Illegal (cannot ask during preemployment). In this context, it is not job-relevant. However, if you were hiring a delivery person, a car would be a BFOQ. However, asking if you own a car is still illegal. The way to ask the question legally is, ―Do you have access to a car you can use to make deliveries?‖ Who owns the car is not really relevant; what‘s wrong with using a parents or someone else‘s car? Again, this can be considered tricky.

11. Tell me if you have any form of disability.

B. Illegal (cannot ask during preemployment). You can only ask this if there is anything that would prevent an applicant from performing a specific task. For example, being in a wheel chair doesn‘t affect the ability to sit at a desk and work.

12. Do you belong to the Jewish Community Center, the Knights of Columbus (KofC), or other similar organizations?

B. Illegal (cannot ask during preemployment). You cannot ask about membership in any nonjob-related organization that would indicate the candidate‘s race (Jewish), religion (both Jewish and KofC are Catholic), or the like.

13. Do you have proof that you are legally eligible to work in the United States of America?

A. Legal (can ask). You can ask if an applicant can prove it, but not to actually prove it until after hiring.

14. Can you speak any foreign languages?

A. Legal (can ask). It‘s okay to ask what languages an applicant can speak but not what language the candidate speaks when not on the job or how the candidate learned the language. This could be a BFOQ for a service type of job answer the phone in Spanish, for example.

15. What is your marital status: single, married, or divorced?

B. Illegal (cannot ask during preemployment). You cannot ask specific questions about marital status until after the person is hired, and divorced is not an appropriate category.

16. I like children; do you have any?

B. Illegal (cannot ask during preemployment). This is a leading question that could be used to discriminate against people with large families.

17. I see that you are applying for a truck driver position with us at UPS. Are you a member of the Teamsters labor union?

A. Legal (can ask). It‘s okay to ask about membership in job-related organizations, such as unions or professional or trade associations. In some states, you have to be a member of a union to get certain jobs.

18. What is your sexual orientation–straight or homosexual?

B. Illegal (cannot ask during preemployment). You cannot ask questions about the candidate‘s sexual orientation/preference if it has nothing to do with qualifications for the job.

19. How did you like your prior jobs? Did you file a lawsuit against an employer?

B. Illegal (cannot ask during preemployment). This is not job related and can be used to discriminate.

20. Where do you live now, and how long have you resided there?

A. Legal (can ask). It‘s okay to ask; see Exhibit 9-3 address.

21. Have you ever tested positive for a sexually transmitted disease, HIV, or AIDS? B. Illegal (cannot ask during preemployment). This is not job-related and violates ADA laws.

Applying the Concept 9-2: Sexual Harassment Indicate which kind of behavior is described in each statement. If you select A, choose the type of sexual harassment as either Type 1 or Type 2 and place the number on the second line.

A. Sexual harassment: (1) quid pro quo or (2) hostile work environment B. Not sexual harassment 22. Chloe tells her assistant José that if he goes to a motel with her, she will recommend him for a promotion.

A. Sexual harassment (1) quid pro quo. Sex as a requirement for the job is illegal.

23. Out of nowhere, Jim surprisingly receives a Snapchat nude picture of coworker Colin.

A. Sexual harassment (2) hostile work environment. Although no complaint is stated, the courts have found offensive pictures to create a hostile work environment. Jim could report the harassment, but it would be hard to prove without the picture or reliable witnesses. But if reported, HR would have a record of the complaint and would support documentation of a prior witness.

24. Marisol drops some cookie crumbs in Jonathan‘s lap and immediately brushes them off with her hand and gives his privates a gentle squeeze that causes him to jump up in surprise.

A. Sexual harassment (2) hostile work environment. Any touching of private areas is clearly sexual harassment the first time, as it creates a hostile work environment.

25. Sue and Karly, both hung up pictures of nude men and women on the walls near their desks, in view of other employees who walk by.

A. Sexual harassment (2) hostile work environment. Although no complaint is stated, the courts have found offensive pictures to create a hostile work environment.

26. Brandon tells his coworker Jennifer an explicitly sexual joke, even though twice before Jennifer said she doesn‘t want to hear dirty jokes.

A. Sexual harassment hostile work environment. (2) After being told to stop, Billy Bob‘s behavior creates a hostile work environment.

27. Kelly typically puts her hand on Tim‘s shoulder as she talks to him, and Tim is comfortable with it.

B. Not sexual harassment. As long as both parties are comfortable with touching, it is not sexual harassment. However, touching is generally not recommended, and if one party tells the other to stop touching and it continues, it is sexual harassment.

28. Adam, the supervisor of the production department, tells subordinate Carleen that he thinks she is sexy and that he‘d like to take her out.

B. Not sexual harassment. There is nothing illegal with asking for a date, unless the person has stated ―No‖ before and asked that the behavior stop. However, if there is a company workplace relationship policy, this could be internal company harassment.

Applying the Concept 9-3: Recruiting Sources Select the major recruiting source(s) that should be used for each of the job openings described.

A. Internal recruiting/mobility B. Employee referrals C. Walk-ins D. Outside organizations E. Agencies F. Advertising/Internet

29. ―We need a new sales rep. Sales Manager Carlos likes to hire young people without experience to train them to sell using our unique approach, so please recruit for the position ASAP.‖ D. Outside organizations. Educational institutions are good places to recruit people who have no prior experience.

30. ―Shane, Robert is taking a three-week paternity leave, so please recruit a replacement for him.‖ E. Agencies. Temporary agencies provide part- or full-time help for limited periods.

31. ―Emily, our first-line supervisor Henry is retiring in two months. What recruiting method should we use to replace him?‖ A. Internal recruiting/mobility (promotions from within). Most first-line supervisors are promoted from within because they have the technical skills to understand the departmental operations.

32. ―Oh, by the way, Sonata, do you know anyone who could fill the administrative assistant position in your department?‖ B. Employee referrals. This is having employees recruit.

33. ―We need a person to perform routine cleaning services in a couple of weeks, but we have no budget. Lee Ann, can you please pick someone coming in looking for a job?‖ C. Walk-ins. People coming in are walk-ins are a good source for unskilled labor.

34. ―Hi, Ashley. Please go online and see if you can get us some applications for the software engineer job opening.‖ F. Advertising/Internet. Going online is using the internet.

Applying the Concept 9-4: Training and Development Methods To select the most appropriate training method for each situation, first, select the skill being developed and place the number on the first line:

1. Technical skills 2. Interpersonal skills 3. Decision-making skills Next, use the letters ranging from A to J in the second column, ―AC 9-4,‖ of Exhibit 9-7 and put it on the second line.

35. ―I‘m delegating to you the task of calculating the company‘s turnover rate last year compared to the last five years, and I need your report tomorrow.‖ 1 D. Projects. A project is used to give employees special assignments, such as preparing a report.

36. You need to train employees to cover for each other when they are not on the job being absent or on vacation.

1 C. Job rotation. With job rotation, employees are trained to perform different jobs.

37. You want to conduct a diversity training program to improve the relationship between diverse group members to better understand each other.

2 E. Role-playing. To develop relationship there are only two options. Role-playing or behavior modeling. With diversity, there is no correct model to follow (so behavior modeling is not appropriate), and role-playing is used to develop empathy—understanding each other better.

38. ―You will like the course because you get information on a company and do an analysis to improve its performance by answering questions.‖ 3 G. Cases. The course is based on the case method.

39. ―Now I‘m going to show you how to run the machine.‖ 1 A. Written material, lectures, videotapes, question-and-answer sessions, discussions, demonstrations (JIT).

40. The HR department needs to develop a method to developing interpersonal and decision-making skills for managers all over the United States of America and three other countries that allows them to get the training on their own whenever they can get it done.

3 J. Interactive videos. This clear describes interactive videos.

41. You will be running a company by filling out these forms and getting quarterly results on your performance; the most important measure of success is stock price.

3 I. Management games. With a management game, trainees work as part of a team to ―manage‖ a simulated company over a period of several game ―quarters‖ or ―years.‖ 42. There has been a large increase in the number of employee complaints. You need to develop a training program that will improve supervisors‘ ability to resolve complaints.

2 F. Behavior modeling. With behavior modeling, trainees watch how to handle employee complaints following the steps of a model, and then role-play a situations that could occur on the job to develop skill at handling complaints on the job.

43. Your company is growing fast and hiring lots of new employees who must learn several rules and regulations before they can start their jobs.

2 B. Programmed learning. Programmed learning is appropriate when there is a large number of employees to be trained on an ongoing basis. It is prepared once (time consuming) and reused several times (time saved in the long run).

44. You have new employees whom you must train to handle the typical daily tasks and problems that may come up that they will have to handle on the job.

3 H. In-basket exercises. An in-basket exercise is appropriate for teaching employees how to handle the daily problems they will face on the job.

Applying the Concept 9-5: Performance Appraisal Methods Select the performance appraisal method (see Exhibit 9-9) that is most appropriate for the given situation.

A. Critical incidents file B. Management by objectives (MBO) C. Narrative method D. Behaviorally anchored rating scales (BARS)

E. Rating scale F. Ranking 45. Jessica is not performing up to standard level of production.

A. Critical incidents file. A critical incidents file is a record of positive and negative performance of an employee throughout the performance period. It is used to tell an employee exactly what the present problems are and to serve as the basis for changing performance.

46. Kassandra wants to use an assessment system for developing each employee.

B. MBO. MBO is the most individualized development method.

47. Managers and employees have complained that the one existing appraisal form does not work well for different types of employee jobs. Usain has decided to hire an HRM professional to develop a performance appraisal system that is more objective and job specific, with forms for various employee groups.

D. BARS. BARS is the most objective method and is used with specific jobs.

48. Samantha asked you for a letter of recommendation for a job she applied for at another company.

C. Narrative method. The narrative method requires a manager to write a statement (in this case, a letter of recommendation) about an employee‘s performance.

49. Indra started a small company and now has a dozen employees. She wants to develop one performance appraisal form that you can use with all employees.

E. Rating scale. Rating scales can be used across jobs because they are general in nature.

50. John has been promoted from a supervisory position to a middle-management position and needs to select his replacement.

F. Ranking. Ranking compares an employee to other employees. It is needed to determine who is best qualified among the present employees.

Join the Discussion Join the Discussion 9-1: Homeless Workers Andre Jehan, Pizza Schmizza founder of the Northwest chain, has an unusual way of recruiting and selecting workers. Homeless people are given pizza slices and soda and sometimes a couple of dollars to carry a sign that reads ―Pizza Schmizza paid me to hold this sign instead of asking for money.‖ Jehan believes he is helping the homeless, saying that carrying the signs has been a win-win situation, as the homeless, many of whom have mental illness or other problems that keep them from being able to hold a job, don‘t feel embarrassed or exploited; they look forward to the work and food. However, Donald Whitehead of National Coalition for the Homeless says Jehan is exploiting the homeless.

1. Is Jehan exploiting the homeless?

Answers vary.

2. Is it ethical and socially responsible to give homeless people food for carrying signs?

Answers vary.

Join the Discussion 9-2: College Sports Agents The National Collegiate Athletic Association (NCAA) continues to penalize college sports teams because their athletes receive cars, cash, clothing, and other gifts from sports agents. NCAA rules allow agents to meet with college athletes. However, they forbid these students from entering into contracts—including oral deals—with agents or accepting gift incentives to sign contracts later. The idea is to ensure fair play and to shield amateurs until they are done with school.

The amount of hours that student athletes put into collegiate sports, however, coupled with the millions of dollars that some major universities earn from the performance of their student athletes, has sparked a debate as to whether these student athletes deserve monetary compensation, despite the fact that they are still students and are playing at an amateur (not professional) level.

1. Is it ethical and socially responsible for college athletes to accept gift incentives from sports agents?

Answers vary.

2. Do you think the NCAA should change its rules and allow college athletes to get paid?

Answers vary.

Join the Discussion 9-3: Sweatshops Nike and many other companies have been criticized for using contract manufacturing with sweatshops that employ workers for very low wages and in poor working conditions. In many countries where much of today‘s manufacturing takes place, there are few or no health and safety regulations. Some employees get hurt and die on the job. People complain that the United States is losing jobs overseas to companies that are exploiting people.

However, others argue that most Americans don‘t want these jobs and that the U.S. companies are helping people in other countries by giving them jobs. Thus, these companies are raising the standard of living in other countries and keeping prices down at home.

1. In your opinion, are companies that hire sweatshop workers helping these workers or exploiting them?

Answers vary.

2. Should a global company compensate all employees at the same rates, or should compensation be based on the cost of doing business and the cost of living in a given country?

Answers vary.

3. Is it possible for a company to apply the same health and safety standards that it follows in the United States of America to its operations in other countries and still compete globally with companies that don‘t apply such standards?

Answers vary.

4. Is it ethical and socially responsible to contract work with sweatshops?

Answers vary.

5. What, if anything, should be done about sweatshops?

Answers vary.

Instructor Manual

Chapter 10: Organizational Behavior: Power, Politics, Conflict, and Stress Answers to Questions in the Text Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

10-1. Identify a present or past boss‘s personality; refer to the personality traits in the Self-Assessment. (LO: 10-3) My boss was an externalizer, as he was always blaming everyone else for things that went wrong. He was pessimistic and avoided taking risks, and did use power over his subordinates. He was an introvert, very competitive, usually worried and nervous, dependable, and avoided doing new things.

10-2. Give an example of a situation that you and someone else experienced together but perceived differently. Which of the biases in perception might explain the difference in perception? (LO: 10-4) My friend and I had to go to a company training program for two hours one afternoon. The training was a motivational speaker trying to get us to have a more positive personality. After the presentation, as we walked back to work, my friend stated how much she liked it and how she was going to try to be more positive. I told her I thought it was stupid and manipulative. I think the major reason for our perception difference was selectivity. My friend is generally more optimistic and was looking for the positive side of the training. On the other hand, I am more pessimistic and looked for the negative side of the training.

10-3. Think of someone who really expected you to perform well (or poorly) and treated you as if you would do well (or poorly), which strongly affected your success (or failure).

Explain how the Pygmalion effect influenced your performance. (LO: 10-5) I remember being on a Little League baseball team. I was a pretty good hitter, but I got into a slump. I struck out four times in a row. Before my fifth time at bat, my coach called me over. He said something like, ―Ted, I can feel a hit coming. You‘re a good batter and you‘re going to get a hit.‖ I went to the plate and somehow my fear of striking out again was gone. I got a triple.

10-4. Which of the suggestions for increasing your power are the most relevant to you?

Explain. (LO: 10-7) My first priority is to work on connection power. Connection power can help me get a job when I graduate and when I advance on the job. My second priority is to develop expert power. I‘m a good worker and take pride in my work.

10-5. Think of one of your present or past bosses and give several examples of the conflict management style that person used most often. (LO: 10-9) My boss was a real negotiator. He was very concerned about treating all employees fairly. For example, an employee complained about having to put out the trash every night, so my boss set up a schedule to rotate the job so that everyone got a turn.

10-6. If you are currently experiencing stress at school or work, identify which of the stress-management techniques you believe you can put into practice. (LO: 10-10) Taking tests is my major stressor. During tests, I‘ve noticed I get really tense. For future tests, I plan on doing some relaxation exercises for my neck and shoulders when they tense up.

Additional Work Application Questions (not in the book) 10-1. Give three examples of how you (or a manager you know) have used the attribution process at work. (LO: 10-4) I went to my boss for help, and he gave me a flip answer with a negative attitude about helping me. I attributed it to being situational, assuming he was in a bad mood that day.

I had a boss that was autocratic and rude. I attributed it to intentional because he acted that way most of the time.

I had a customer who was upset and talking very loud. I attributed it to situational, assuming the customer was upset because the product did not work.

10-2. Give an example of how your attitude affected your performance at work. (LO: 10-5) I worked as an administrative assistant for a law firm. At first, I liked the job but over time, I came to dislike it. I felt I was overworked and underpaid. I asked for a raise but wasn‘t given one, which made things worse. After I didn‘t get the raise, the amount and quality of the work I did slipped; I called in sick a lot when I really wasn‘t and I spent a lot of time surfing the internet and instant messaging my friends when I should‘ve been working. My feeling was, ―I wasn‘t

going to be rewarded for my hard work; then why should I put forth any effort?‖ Eventually, I was fired owing to my poor performance.

10-3. Identify the type(s) of power usually used by your current boss or a previous boss.

Was there any type(s) of power that this person used only rarely? (LO: 10-7) My boss at Papa Gino‘s used reward power. We got periodic reviews and raises every few months. There were regular contests such as Employee of the Week and who could sell the most pizza in one night. My boss would also use coercive power when people came in late or broke other rules. People who did not want to follow the rules and work hard did not last long; they either quit or were fired.

10-4. Give an example of how you used political behavior to achieve an organizational objective. (LO: 10-7) We worked on a loading dock and packed trucks alone. However, when we had a heavy item to load, we would help each other. This is reciprocity, and the trade-off was helping each other.

10-5. Which of the suggestions for developing political skills is the most relevant to you?

(LO: 10-7) I need to stay tuned in to the grapevine more. I tend to be shy and quiet and don‘t socialize much with my other coworkers. For this reason, I am usually left out of the information loop and am the last one to know what is going on with the organization.

10-6. Which one of the five conflict management styles do you tend to use most often?

Explain. (LO: 10-9) I tend to use the forcing style. I don‘t come right out and really push people with threats, but I do tend to be closed to others‘ ideas. Therefore, I tend to do a strong sales job by explaining why what I want done should get done my way. For example, when I see people doing the job differently than I would do the job, I question why they do it that way and ask why they don‘t do it this way—the way I‘d do it.

10-7. Describe a conflict in which you used (or should have used) a BCF statement. (LO: 10-9)

I had a situation with my friend coming to pick me up from work late, and I had to wait for her before leaving for class. As a result, I lost bonus points on the test. This happened more than once. Instead of using a BCF, I yelled at her one day, and it hurt our relationship and didn‘t get her to arrive on time. I should have said, ―When you come to pick me up from work late, I have to wait for you and I get to class late. Being late, I lose bonus points on the test. I‘m concerned about my grade and upset about losing points.‖ 10-8. At which of the stress-management techniques are you best and worst? What can you do to improve your stress-management skills? (LO: 10-10) I‘m best at exercise because I play on the basketball team. I‘m worst at nutrition because I drink a lot of soda and eat a lot of candy. I plan to cut back on the junk food and increase my intake of fruit and vegetables.

Review Question Answers 10-1. What are the Big Five personality dimensions?

The Big Five personality dimensions are extraversion, agreeableness, emotionalism, conscientiousness, and openness to experience.

10-2. What are the four biases in perception?

The four biases in perception include selectivity, frame of reference, stereotypes, and expectations.

10-3. What are the determinants of job satisfaction? Are they of equal importance to everyone?

The six determinants of job satisfaction are personality, the work itself, compensation, growth and upward mobility, coworkers, and management.

The importance of the six determinants is not the same for everyone. Thus, employees can have overall job satisfaction based on different factors.

10-4. What are the seven types of power?

The seven types of power are coercive, connection, reward, legitimate, referent, information, and expert power.

10-5. Can managers order that power and politics in an organization be abolished? If yes, should they?

No. They should not try to abolish power and politics because ethical power and politics are functional. However, they should take action to discourage unethical behavior.

10-6. Why should you learn the organizational culture and identify power players where you work?

Learning the organizational culture helps you to understand how to develop power through political behavior. Identifying the power players enables you to develop connections with them to help you get what you want.

10-7. How do you know when you are in conflict?

A conflict exists whenever people are in disagreement and opposition.

10-8. What is the difference between functional and dysfunctional conflict, and how does each affect performance?

Functional conflict exists when disagreement and opposition support the achievement of organizational objectives; it enhances performance. Conflict that prevents the achievement of organizational objectives is negative, or dysfunctional, conflict; it reduces performance.

10-9. What does it mean to ―maintain ownership of a problem‖?

Maintaining ownership of the problem means expressing it without assigning blame or making assumptions about who is right or wrong.

10-10. What is the difference between a mediator and an arbitrator?

A mediator can only advise and assist the parties in resolving the conflict, while an arbitrator has the power to make a binding decision to resolve the conflict.

10-11. What are the characteristics of a Type A personality?

The Type A personality is characterized as fast moving, hard driving, time conscious, competitive, impatient, and preoccupied with work.

10-12. What are six stress-management techniques?

The six stress-management techniques are time management, relaxation, nutrition, exercise, positive thinking, and support networks.

Communication Skills Answers 10-1. Does personality really play a part in your personal and professional happiness and success? Can you change your personality? If so, how?

Yes. Generally, people who are externalizers, pessimistic, emotionally unstable, and irresponsible are not as happy or successful in both their personal and professional lives.

Yes. Personality can change. If you find yourself on the left side of the personality dimension continuums, you can take steps to get to the right side where, generally, people are happier and more successful in life.

Answers will vary on how a person might go about doing this.

10-2. Why do most people use attribution rather than ask people why they do and say the things they do? How often do you use attribution rather than asking people? Why? People have a fear of confronting others to find out the reason for their behavior.

Answers will vary.

10-3. Does the Pygmalion effect really work? Why or why not?

Answers will vary.

10-4. What is your attitude toward power and politics in organizations? Should power and politics be changed, and if so, how?

Answers will vary.

10-5. Which of the guidelines for developing political skills do you think is most important?

Why? Answers will vary.

10-6. What are the most relevant points you learned about negotiation that you didn‘t already know and use? Will you follow the steps in the negotiation process in future negotiations?

Answers will vary.

10-7. Which of the conflict management styles do you tend to use most often? Why? Answers will vary.

10-8. How much stress do you have in your life? When do you tend to have more stress, and what is (are) the major cause(s) of the stress?

Answers will vary.

10-9. Which of the stress-management techniques listed in the text do you use currently?

Can you think of or do you use any other stress-management techniques that are not listed in the text?

Answers will vary.

Applying the Concept Answers Applying the Concept 10–1: Big Five Personality Types Identify the personality type indicated by each comment.

A. Extroversion B. Agreeableness C. Emotionalism D. Conscientiousness E. Openness 1. ―I don‘t trust William to get the report to me today by 3:00 today.‖ D. Conscientiousness. The statement is saying that William doesn‘t have conscientiousness.

2. ―Be ready to overcome Mary‘s resistance to the new change.‖ E. Openness. The statement is saying that Mary is not open to change.

3. ―As usual, Bob is complaining about our new project.‖ B. Agreeableness. The statement is saying that Bob is not being agreeable.

4. ―I really like working with Tanya because she always comes through with good work.‖ D. Conscientiousness. The statement indicates a responsible worker.

5. ―Tyson is a pleasure to work with because he is so cooperative. We get along great.‖ B. Agreeableness. The statement indicates a person that is easy to work with.

6. ―I appreciate Lianna because she always comes with creative ideas during meetings.‖ E. Openness to experience. The statement indicates a person that is willing to try new things.

7. ―I really like working on Jim‘s because he is so easy to have a conversation with.‖ A. Extroversion. The statement indicates a person that is social and talkative.

8. ―I enjoy working for Terri because she never stirs up drama over little things.‖ C. Emotionalism. The statement indicates a person that is emotionally stable.

Applying the Concept 10-2: Perception Bias Identify the perception bias indicated by each comment.

A. Selectivity B. Frame of reference C. Stereotyping D. Expectations E. ―Like me‖ assumption 9. ―Kara, don‘t you realize that your opinion is not as logical as mine. So we should do the task my way.‖ A. Selectivity. The person is screening information in favor of his or her desired outcome.

10. Bonita is an emotional person, so she will not make a good supervisor.

C. Stereotyping. This is negative stereotype about women.

11. ―Hank, I know you‘re a good worker, but I can‘t give you the assignment again. You should understand that I have to be fair to everyone in the department.‖ B. Frame of reference. This indicates Hank seeing things from his point of view, not the manager‘s.

12. ―Shawn, I thought you were my friend, and that you would back me on this.‖ E. ―Like me‖ assumption. An assumption is made regarding thinking alike.

13. ―Jayden, your point is weak. Don‘t you understand that my idea is much better?‖ A. Selectivity. This statement indicates screening information in favor of getting his way.

14. ―The new project manager, Kit, is a single parent, so I guess he won‘t have his mind on his work.‖ C. Stereotyping. This is a generalization of a group to one individual.

15. ―I usually know what Conroy is going to say at meetings. He is so predictable.‖ D. Expectations. This indicates seeing or hearing what is anticipated.

Applying the Concept 10-3: Using Power Identify the appropriate type of power to use in each situation.

A. Coercive B. Connection C. Reward or legitimate D. Referent E. Information or expert 16. Tony is over at Helen‘s desk talking instead of doing his job.

A. Coercive. As the mangers, tell Tony to get back to work.

17. You have to get an important customer order shipped today, and Sonia is not working to standard again. Sonia claims that she does not feel well and cannot afford to take time off, so she can‘t get much work done today.

C. Reward or legitimate. You should make Sonia realize the importance of getting the order out through a legitimate request for doing her job or going home sick.

18. Ari, one of your best workers, is currently not doing a good job as usual. You think Ari has a personal problem affecting her work.

D. Referent. You will get the best results at influencing Ari by working on the relationship side of power. Show a personal concern and willingness to help.

19. A new, expensive robot machine is now available that can increase your department productivity, and you want one. Major purchases must be approved by a committee, and its decisions tend to be influenced by politics.

B. Connection. Working on the political connections is advisable to gain support for your request.

20. Amita has talked to you about getting ahead and has asked you to help prepare her for a supervisor position when the next opportunity opens.

E. Information or expert. Amita is looking for information and your expertise to help her get promoted.

21. Samuel is not wearing a required safety vest again, saying it is too hot.

A. Coercive. When employees are intentionally not following orders or rules, discipline through coercion is appropriate.

Applying the Concept 10-4: Political Behavior Identify the political behavior in each situation as A. Effective B. Ineffective 22. Juanita has to drop off daily reports at a certain office by noon. She brings them in around 10:00 a.m. on Mondays and Wednesdays so that she can run into some higher-level managers who meet at that time near the office. On the other days, Juanita drops the reports off around noon on her way to lunch.

A. Effective. This is a way of getting recognition and visibility and developing connections.

23. Ron signed up to play on the company softball team that includes some higher-level managers.

A. Effective. Ron can make some political connections by learning the power players.

24. Wei told his boss‘s boss about a mistake her boss made yesterday.

B. Ineffective. If Wei‘s boss finds out about this behavior, this could be a big surprise that his boss could hold against Wei. 25. Romeo avoids socializing so that he can be more productive on the job.

B. Ineffective. Being a good worker is important, but you also need interpersonal relations to get things done politically. Socializing is an important part of power and politics.

26. Juliet sent copies of a report that she wrote to three higher-level managers.

A. Effective. This is a way of getting recognition and visibility for your work. However, you don‘t want to sound like a bragger.

Applying the Concept 10-5: Conflict Management Styles Identify the most appropriate conflict management style to use in each situation.

A. Avoiding style B. Accommodating style C. Forcing style D. Negotiating style E. Collaborating style 27. Kim says she thinks President Donald Trump is doing a good job. Coletta starts talking politics and how much she hates President Trump.

A. Avoiding style. It‘s best not start an argument over Trump than could hurt their relationship.

28. Usain is over budget for labor this month. The store is currently not busy, so he asks Erica, a part-time employee, to leave work early. Erica tells him she doesn‘t want to go because she needs the money.

C. Forcing style. It is part of the manager‘s job to implement unpopular decisions.

29. Kendra joined a committee that she has no real interest in to make contacts. At a meeting, she makes a recommendation that is opposed by narcissist Kirkland, who is using a forcing style.

B. Accommodating style. When the conflict is not important to you but is for the other party, let it go. If you take a stance against the other person, this person and others that side with this person will not help in networking.

30. Deanna is on a task force that has to select a new high-tech machine. The four alternatives will all do the job, but team members disagree about the brand, price, and service.

D. Negotiating style. This is a situation in which there is no simple clear solution, so a compromise is appropriate.

31. Jessica is the sales manager. Competent sales rep Hemet is trying to close a big sale. The two are discussing the next sales call, and they disagree on the strategy to use to close the sale.

E. Collaborating style. This is an important issue that requires an optimal solution. Hemet needs to feel comfortable going into the sale. If the manager forces Hemet to do it her way, he may rebel and intentionally lose the sale to show Jessica was wrong. If they both agree on the strategy, the odds of closing the sale will be higher.

32. Donald is on his way to an important meeting and running a little late. As he leaves the office, at the other end of the work area he sees Brittany socializing instead of working.

A. Avoiding style. Donald doesn‘t have time to confront Brittany now; however, when he gets back, Donald should talk to her.

33. Ram doesn‘t like working every other Saturday. A good coworker, Ross tells Ram that his cousin Eddie is getting married on Saturday and asks Ram if he will work his shift.

B. Accommodating style. Although Ram doesn‘t like to work on Saturday, part of friendship relationships is to help each other when needed. Also, Ross will now own Ram a favor.

Join the Discussion Join the Discussion 10-1: Following Orders Officers in the armed forces tend to use legitimate power with troops. Military recruits are conditioned to follow orders without questioning authority. In fact, it is a crime for a military member to willfully disobey any lawful order. However, many military officers issue unlawful orders to recruits and expect them to obey them.

1. Is it ethical and socially responsible to teach people in the military or any other organization to follow orders without questioning authority?

Answers vary.

2. What would you do if your boss gave you an unethical/unlawful order?

Answers vary.

3. Is following orders a good justification for conducting unethical/unlawful practices?

Answers vary.

Join the Discussion 10-2: Obesity Being overweight places stress on the body, and poor nutrition contributes to obesity. Obesity is on the increase, and it is a major contributor to the rising cost of health care. Health officials are trying to persuade Americans to lose weight. The government has released public service ads to convince people to get in shape and eat right.

1. Is there prejudice and discrimination against obese people at work?

Answers vary.

2. Is it ethical and socially responsible for the government to try to get people to lose weight through ads and other methods?

Answers vary.

3. What is the reason for the increase in obesity in the United States of America? Are restaurant owners and other food marketers responsible for the obesity problem, or are consumers at fault?

Answers vary.

Instructor Manual

Chapter 11: Motivating For High Performance Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

11-1. Recall a present or past job; were you dissatisfied or not dissatisfied with the maintenance factors? Were you satisfied or not satisfied with the motivators? Identify the specific maintenance factors and motivators, and explain your response. (LO: 11-2) I work at the YMCA. I‘m not too dissatisfied with the maintenance factors because I realize that as a college intern, I don‘t get pay or benefits. The working conditions are good, and I am allowed to leave early sometimes if I have a test to study for. I have mixed satisfaction with the motivators because I mainly do membership list updating. At first, it was interesting and motivating because I had to learn the special Y computer program. But after I learned it, it was pretty boring to just make routine entries for hours at a time. However, I learned last week that I will be starting on a new task and given more responsibility.

11-2. Give an example of how goal(s) affected your motivation and performance or that of someone you work with or have worked with. (LO: 11-3) At Friendly‘s Ice Cream, we are supposed to close at 12:00 a.m. on weekend nights, but we stay open if there are customers. One Friday, all the workers had planned to have a party after work for Jean, who was leaving for college. At around 11:30, the place was packed. Normally, with that number of customers it would take about one hour or more to finish. But we wanted to start the party on time, so our goal was to get out on time. To reach our goal, everyone worked really fast. As a result, we got out at 12:05.

11-3. Give a few examples of the types of reinforcement, and the schedules used, at a present or past job. (LO: 11-4) My boss uses positive reinforcement by giving me words of praise each time I meet my sales goal for the week (continuous reinforcement). He also used positive reinforcement when he gave me a pay raise last summer (intermittent reinforcement; variable-interval schedule).

11-4. Select an organization that you work for or have worked for and briefly describe its rewards and recognition. (LO: 11-6) I work at the Walmart in my hometown. As far as reward programs, they offer bonuses and stock options to their employees. They used to provide profit-sharing but ended that earlier this year.

They also have recognition programs, such as Employee of the Month and paid time off. They also give their employees an associate discount card, which allows us to receive discounts on store merchandise, eyeglasses, food, etc.

Additional Work Application Questions (not in the book) 11-2. Describe how your needs at each of Maslow‘s levels are addressed by an organization you work for now or were addressed by one you worked for in the past. (LO: 11-2) I worked at a bottling factory last year.

Physiological needs. They provided water coolers at numerous places in the factory.

Safety needs. We received training on our first day on how to run the machines. We were also given a pair of safety goggles to wear each time we ran a machine.

Social needs. We worked in groups every day, so I developed friendships with some of my coworkers.

Esteem needs. I was given the ―Employee of the Month‖ award twice.

Self-actualization needs. By the end of the summer, I was made supervisor for my area.

11-2. Explain how your need for achievement, power, and/or affiliation has affected your motivation on the job. (LO: 11-2) My major need is power. I like to be in charge and enjoy competition, which increases my motivation. When I‘m given a task at work, I like to do it my way. I don‘t like anyone telling me what to do and how to do it.

11-3. Give an example of how equity theory has affected your motivation or someone else‘s you work with or have worked with. Be sure to specify if you were under rewarded, over rewarded, or equitably rewarded. (LO: 11-3)

Equity theory definitely affected my motivation. While working at McDonald‘s last year, I usually got stuck working at night with the same two people on my shift. They would usually goof off and I would do most of the work. I went to the manager and told him of the situation and asked for a raise since I felt I was doing most of the work and was under rewarded. He didn‘t give me one, so I quit the next week.

11-4. Give an example of how expectancy theory has affected your motivation or someone else‘s you work with or have worked with. Be sure to specify the expectancy and the valence. (LO: 11-3) At my internship, I do a variety of projects. I noticed that my motivation is stronger when I know I can do the project well. When I‘m not too sure of myself, I procrastinate. Also, I know that when I do a good job, my boss will let me know what a great job I did, and this recognition is a reward of value to me.

Review Question Answers 11-1. How is the performance formula used by managers?

To increase performance, managers determine the ability, motivation, and resources to determine which area needs to be improved to increase performance.

11-2. What are the three major classes of motivation theories?

The three major classes of motivation theories are content motivation theories, process motivation theories, and reinforcement theory.

11-3. What are the four content motivation theories?

The four content motivation theories are hierarchy of needs theory, ERG theory, two-factor theory, and acquired needs theory.

11-4. What do the E, R, and G stand for in ERG theory?

E stands for existence, R for relatedness, and G for growth.

11-5. What are the two factors in Herzberg‘s two-factor theory?

The two factors in Herzberg‘s two-factor theory are maintenance factors and motivators.

11-6. What is the role of perception in equity theory?

Equity theory proposes that employees are motivated when their perceived inputs equal outputs.

Notice that the definition says that employees compare their perceived (not actual) inputs to outputs. Equity may actually exist. However, if employees believe that there is inequity, they will change their behavior to create equity. Employees must perceive that they are being treated fairly relative to others.

11-7. Does the goal-setting theory really motivate employees?

Yes. Research has shown that the goal-setting theory is currently the most valid approach to work motivation.

11-8. What are the two variables of the expectancy theory?

The two variables of expectancy theory are expectancy and valence.

11-9. What are the two schedules of reinforcement?

The two major reinforcement schedules are continuous and intermittent.

11-10. Is there a relationship among the three major classifications of motivation theories?

Yes. The groups of theories are complementary; each refers to a different stage in the motivation process or answers a different question.

Communication Skills Answers 11-1. Do people really have diverse needs?

They definitely do. Students should realize that people have different needs and must be treated differently but equally.

11-2. What is motivation, and why is it important to know how to motivate employees?

Motivation is the willingness to achieve organizational objectives or to go above and beyond the call of duty (organizational citizenship behavior). Motivation is important because if employees are not willing to achieve the objectives, the company will not be successful. The company‘s success is based on its employees.

11-3. Do you agree that managers‘ attitudes and expectations affect employee motivation and performance? Explain your answer.

Answers will vary, but students should realize that managers‘ attitudes toward and expectations and treatment of employees largely determine their performance.

11-4. Do you agree with the performance formula? Will you use it on the job?

Answers will vary.

11-5. Which of the four content motivation theories makes the most sense to you? Why? Answers will vary.

11-6. Which of the three process motivation theories makes the most sense to you? Why? Answers will vary.

11-7. What reinforcement methods have been used to get you to go to work and to be on time?

Answers will vary.

11-8. Reinforcement theory is unethical because it is used to manipulate employees. Do you agree with this statement? Explain your answer.

Answers will vary.

11-9. Which motivation theory makes the most sense to you? Explain why.

Answers will vary.

11-10. What are the major methods and techniques you plan to use on the job as a manager to increase motivation and performance?

Answers will vary.

Applying the Concept Answers Applying the Concept 11-1: The Performance Formula Identify the factor contributing to low performance in the following five situations.

A. Ability B. Motivation C. Resources

1. Darren, I know you are trying hard, but it‘s not about effort; I give merit raises based on results.

A. Ability. Darren doesn‘t have the ability to get the merit raise.

2. ―Betty Lou, it‘s not my fault the machine broke and now we are behind schedule.‖ C. Resources. The employee could not do the work because a resource (machine) was broken.

3. ―Usain went on a sales call, but when she went online our company website was down; resulting in no sale.‖ C. Resources. The website is a resource.

4. ―Butch, I know you are trying hard, but you aren‘t meeting your sales quotas. We have to let you go.‖ A. Ability. If he‘s trying hard, we have to assume he doesn‘t have the ability to meet the sales quotas.

5. ―Too bad Latoya does not seem to like doing her work and just does the minimum to keep her job.‖ B. Motivation. For some reason, Latoya lacks motivation.

6. ―John makes more sales calls than the other five reps, but he has the lowest sales.‖ A. Ability. The others seem to have greater ability.

7. ―I know Mark is bright and could get all As, but he doesn‘t seem to realize that grades are important to getting a good job.‖ B. Motivation. This person is not willing to do the work to get the grades.

Applying the Concept 11-2: Content Motivation Theories Identify the theory behind each of the following statements on how to motivate employees.

A. Hierarchy of needs theory B. ERG theory C. Two-factor theory D. Acquired needs theory

8. ―Holly, you are a real people person. How about orienting our new employee Eduardo to the department?‖ D. Acquired needs theory. Holly is an Aff and is a good selection to orient and work with new employees.

9. ―Mike, at Google, we created a culture where we work hard, but it‘s a fun place to work.

C. Two-factor theory. They are focusing on motivator factors by making work fun.

10. ―Our HR staff is already offering good salaries and benefits. Now HR is recommending that we have more social events so employees can get to know each other better to promote more motivated teamwork.‖ A. Hierarchy of needs theory. The company has progressed from physiological needs (pay), to safety needs (benefits), and now to social needs (teams).

11. ―Harry, here at Pet‘s R Us Animal Clinic, we focus on hiring people who love animals and want to care of them.‖ C. Two-factor theory. The manager is focusing on motivators.

12. ―Edwina, I know I like to micromanage, but I‘m working at giving some of my employees more autonomy in their jobs.‖ D. Acquired needs theory. The manager has a high need for power but will empower employees.

13. ―Carl, a five-step sequence of needs is too complex. That‘s why I like this other one with three needs better.‖ B. ERG theory. The ERG theory simplifies Maslow‘s hierarchy of five types of needs into three needs.

14. ―I really like having Lomita as an employee. She wants to be a success and always comes through when I delegate task to her.‖ D. Acquired needs theory. Lomita is an Ach and has a need to succeed that motivates getting the job done well.

Applying the Concept 11-3: Process Motivation Theories Identify the theory behind each of the following statements on how to motivate employees.

A. Equity theory B. Goal-setting theory C. Expectancy theory 15. ―Lolo, I do agree that you do exceptional work. So, I will request the raise you want with HR.‖ A. Equity theory. The boss is making perceived inputs and outputs equitable.

16. ―I talked to all of my employees so I would know what is important to them. Now I can offer rewards that will motivate them when they perform a task well.‖ C. Expectancy theory. The parts of expectancy theory are to assign tasks that employees can accomplish and to give them rewards that are of value to them.

17. ―My style is to delegate tough tasks that my employees can do, and I tell them exactly what I want them to do, with a tough deadline.‖ B. Goal-setting theory. The manager is setting achievable but difficult goals.

18. ―Shawn, you have to realize that we are over booked and everyone else is working tomorrow, so you have to work.‖ A. Equity theory. Making sure everyone perceives fair treatment is equity.

Applying the Concept 11-4: Types of Reinforcement Identify the theory behind each of the following statements on how to motivate employees.

A. Positive/reward B. Avoidance/negative C. Punishment D. Extinction 19. ―Avi, you‘re late again. The next time we have overtime hours available, I‘m not going to give you any overtime.‖ D. Extinction. Not giving overtime is withholding of a reward to change undesired behavior of coming in late for work.

20. ―I know we can make more money by fixing prices, but it‘s illegal, so I‘m not going to do it.‖ B. Avoidance reinforcement. Avoiding getting into legal problems.

21. ―Helen, I really appreciate your staying late tonight to finish this project.‖ A. Positive/reward. Praise of thanks is a reward.

22. ―Sharon, you know the rule is that we dock your pay if you come in late. No excuses.‖ C. Punishment. Docking of pay is a punishment.

23. ―I was hoping that Heidi would stop being so critical of Jake, but it has been going on for a week now, so I guess I‘m going to have to talk to her about it.‖ D. Extinction. Ignoring the problem is extinction, and it is not working.

Applying the Concept 11-5: Schedules of Reinforcement Identify the theory behind each of the following statements on how to motivate employees.

A. Continuous incremental schedule B. Fixed-interval C. Variable-interval D. Fixed-ratio E. Variable-ratio 24. ―Kyle, I want to continue being paid monthly, and I like February better than the months with 31 days because those months I tend to run out of money by the end of the month.‖ C. Variable-interval. The number of days varies by month, and months are based on time.

25. ―Anita, congratulations. You manufactured the most computer chips again this week, making you the high income earner for the fourth month in a row since we started this new piece rate system.‖ A. Continuous incremental schedule. Piece rate in production is a continuous reinforcement.

26. ―Thanks, Anton. You really hustled to get that shipment out on time today.‖ E. Variable-ratio reinforcement. This is an occasional giving of praise based on an output.

27. ―I just closed another sale. I‘m looking forward to a nice commission check this week.‖ A. Continuous incremental schedule. He gets a commission for every sale made.

28. ―Katie, you need to work fast so we can meet our quarterly sales goal, and get a share of the profits.‖ D. Fixed-ratio. Profit sharing is a type of bonus given after meeting the set/standard objective/standard.

29. ―I look forward to getting out of working on Monday mornings to attend our weekly department meeting.‖ B. Fixed-interval. A weekly meeting is based on a fixed/set schedule and the passage of time.

Join the Discussion Join the Discussion 11-1: Academic Standards The academic credit hour system was set up many years ago to ensure that there would be some standardization across colleges throughout the country and that academics and employers had the same understanding of the workload that a college student had carried to earn a degree. The credit-hour system was based on the assumption that a student would spend two hours of preparation for each hour of in-class time. So, a student taking 5 classes should spend 15 hours per week in classes and about 30 hours preparing for classes, or a total of about 45 hours a week—which is a full-time schedule.

1. How many hours outside of class, on average, do you and other students you know spend preparing for class each week?

Answers vary.

2. Are college professors today assigning students two hours of preparation for every hour in class? If not, why do you think they have dropped this standard?

Answers vary.

3. Are students who are essentially doing part-time work (that is, attending classes but doing little academic work outside of class) during college being prepared for a career after graduation (with a 40- to 60-hour workweek)?

Answers vary.

4. Is it ethical and socially responsible for professors to drop standards and for colleges to award degrees for doing less work than students did 5, 10, or 20 years ago?

Answers vary.

Join the Discussion 11-2: Using Reinforcement Theory Reinforcement theory has been used successfully to maintain and increase performance by many companies globally. However, its use does have critics who claim that it manipulates employees and that it is the carrot-and-stick approach to motivation.

1. Does reinforcement motivate you?

Answers vary.

2. Is reinforcement effective (does it serve to motivate) in today‘s global economy?

Answers vary.

3. Is the use of reinforcement theory ethical and socially responsible or manipulative?

Answers vary.

Instructor Manual Chapter 12: Leading with Influence Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

12-1. Of Ghiselli‘s six traits, which does your boss possess? Are there any that she or he does not possess? (LO: 12-2) My boss had pretty good supervisory ability. His need for achievement was only average. I don‘t think he was very intelligent. His decision-making skills were good when you went to him with a problem. He had self-assurance. Initiative is hard to say, but I didn‘t see his boss around, so I guess he didn‘t need supervision.

12-2. Recall a present or past boss. Which of the four leadership styles created by Ohio State‘s version of the two-dimensional leadership model did your boss use most often?

Describe your boss‘s behavior. (LO: 12-3) My boss at McDonald‘s was high structure/low consideration. He didn‘t care about the employees, only about getting the job done. If you were scheduled to get off work at 8:00 p.m. and you had people picking you up, he‘d just make you do extra work for about another half hour rather than letting you out on time.

12-3. Classify your present or past boss‘s preferred style as task or relationship oriented.

Think of a specific situation at work and use the contingency model to determine the appropriate style to use for this situation. Did the boss use the appropriate style? (LO: 12-4) My boss is definitely task oriented; he cares little about people. Using Fiedler‘s model, (1) his relations are poor, (2) the job is repetitive, and (3) he has strong position power. Thus, Fiedler‘s model says my boss‘s situation is ―5—relationship.‖ However, he is task-oriented, so he does not use the appropriate style.

12-4. Identify your boss‘s most commonly used leadership style. Would you say this is the most appropriate leadership style based on the maturity level of the employees in your team or organization? Explain. (LO: 12-4) My boss primarily used the selling style. When she had a task that needed to be performed, she would decide how to do it and delegate the task effectively by ―selling‖ the reasons why it needed to be done and why it should be done in a specific way. It was the right style for the maturity of the employees, which was moderate to low because they were students who worked part time.

12-5. Identify the one leadership theory or model you prefer. State why. (LO: 12-5) I like the Situational Leadership® model because the model tells you which style to use for the given situation in a simple format that you can easily remember and use on the job.

Additional Work Application Questions (not in the book) 12-1. Recall a present or past boss. Which of the five leadership styles did your boss use most often? Describe your boss‘s behavior. (LO: 12-3) My boss used a middle-of-the-road management style. For example, if you finished the work quota for the day, he‘d let you just sit around and do non-work-related things, such as read books, until quitting time.

12-2. Using the leadership continuum model, identify your boss‘s most commonly used leadership style. Now recall a specific situation in which the leadership style was used.

Would you say this was the most appropriate leadership style in that situation? Explain.

(LO: 12-4) At my job at the book warehouse last summer, my boss‘s most commonly used leadership style was ―5. Leader presents the problem, gets suggested solutions, and makes a decision.‖ One instance in which this leadership style was used was when the boss needed ten workers to come in on Saturdays and work during the month of July. Instead of making the decision by himself, he called a meeting and asked what the best way to go about this would be—whether to have volunteers, whether to assign specific workers himself, whether to draw numbers, etc. I would say this was the most appropriate style in this situation because he implemented our solution of having volunteers, and the ones who volunteered to come in and work on Saturday would most likely work harder than someone who didn‘t want to but was assigned to come in.

12-3. Identify your boss‘s most commonly used leadership style. Now recall a specific situation in which this style was used. From the perspective of the path-goal model, was this the most appropriate leadership style based on the situational factors? Explain. (LO: 12-4) During my internship at the marketing firm, my boss used achievement-oriented leadership most often. I‘d say it was appropriate and very effective because I performed a series of non-structured projects. She would start me out with high directives to be sure I could do the job, and then she would check my progress, being very supportive by asking me if I had questions and how the job was going. By the end of the quarter, I had won a special recognition award for ―Most Projects Completed in a Three-Month Period.‖

12-4. Identify your boss‘s most commonly used normative leadership style. Now recall a specific situation in which this style was used. From the normative leadership perspective, was it the most appropriate leadership style? Explain. (LO: 12-4) I‘d have to say my boss used the Decide leadership style because I don‘t remember any time he actually used a group to make a decision or even to ask for information. Based on the seven questions, I guess the style was okay because things seemed to get done on time.

12-5. Could the characteristics of the task, subordinates, or organization substitute for your present or a past boss? In other words, is your boss necessary? Explain. (LO: 12-4) I‘m a visiting nurse, so my boss does not see me working, except during evaluations when she comes with me twice a year. Therefore, I don‘t really need a boss because I know what I‘m doing. The visit system is repetitive for basics, treatment varies greatly based on illness, and the organizational spatial distance can substitute for leadership.

12-6. Recall the top manager from an organization you work for or have worked for.

Would you call this CEO a visionary, charismatic, and/or transformational leader? Why? (LO: 12-5) I worked for a large company, so I really did not know the president. However, other employees used to talk about him negatively as though he was a dictator. Therefore, I‘d say he was not charismatic or transformational.

Review Question Answers 12-1. What is leadership, and why is it important?

Leadership is the process of influencing employees to work toward achieving objectives.

Leadership matters a great deal because it has a direct effect on performance.

12-2. What are the three parts of leadership style?

The three parts of leadership style are traits, skills, and behaviors.

12-3. What are the two determinants of leadership and the four possible leadership styles according to the Ohio State University and University of Michigan studies?

The two determinants are structuring (job-centered) and consideration (employee-centered). The four possible leadership styles are ―Low structure/High consideration,‖ ―High structure/High consideration,‖ ―Low structure/Low consideration,‖ and ―High structure/Low consideration.‖ 12-4. What are the five major leadership styles identified on the Leadership Grid®?

The five major leadership styles identified on the Leadership Grid® are (1, 1) impoverished; (9, 1) authority-compliance; (1, 9) country club; (5, 5) middle-of-the-road; and (9, 9) team.

12-5. What are the two leadership styles identified by the contingency leadership model?

The two leadership styles identified by the contingency leadership model are task-oriented leadership and relationship-oriented leadership.

12-6. What are the two styles of leadership at either end of the leadership continuum model?

The two styles of leadership at the ends of the leadership continuum model are autocratic (bosscentered) and participative (employee-centered).

12-7. What are the four leadership styles identified by the path-goal leadership model?

The four leadership styles identified by the path-goal leadership model are directive, supportive, participative, and achievement-oriented.

12-8. What are the five leadership styles identified by the normative leadership model?

The five leadership styles identified by the normative leadership model are decide, consult individuals, consult group, facilitate, and delegate.

12-9. What are the four leadership styles identified by the Situational Leadership® model?

The four leadership styles identified by the Situational Leadership® model are telling, selling, participating, and delegating.

12-10. What are the three substitutes for leadership?

The three substitutes for leadership are characteristics of the task, characteristics of subordinates, and characteristics of the organization.

12-11. What is the difference between transformational and transactional leadership?

Transformational leadership is a leadership style that brings about continuous learning, innovation, and change. Transactional leadership is a leadership style based on social exchange.

Communication Skills Answers 12-1. Peter Drucker said it‘s not worth pointing out the differences between a leader and a manager. Do you agree? Why or why not?

Answers will vary.

12-2. What traits do you think are most important in a leader?

Answers will vary.

12-3. Should spirituality be allowed in the workplace? Should spirituality be encouraged in the workplace? Why or why not?

Answers will vary.

12-4. Based on the Self-Assessment, is your behavior more Theory X or Theory Y? How do you feel about your score? Will you make any changes?

Answers will vary.

12-5. The Ohio State University and University of Michigan two-dimensional leadership styles identified in the 1940s haven‘t changed much over the years, as they are still being taught and used today. However, the way we conduct business today is very different from the way it was conducted in the 1940s. Do you think it is time for a revolutionary approach to leadership styles? If so, please provide some suggestions/ideas.

Answers will vary.

12-6. Today, the Leadership Grid® is still being taught in colleges and by consultants to be used by managers. Do you agree that the team leadership style is the best leadership style for use in all situations? Why or why not?

Answers will vary.

12-7. Which situational approach to leadership do you prefer? Why? Answers will vary.

12-8. What percentage of top leaders would you say are really charismatic, transformational, symbolic, and/or servant leaders? (Your answers can change for each of the four leadership behaviors.)

Answers will vary.

12-9. Do you believe that men and women lead differently?

Answers will vary.

Applying the Concept Answers Applying the Concept 12-1: The Leadership Grid® Identify the leadership style described in each of the five situations.

A. Impoverished (1, 1) B. Authority-compliance (9, 1) C. Country club (1, 9) D. Middle-of-the-road (5, 5) E. Team (9, 9) 1. The manager simply focuses on getting the job done.

B. Authority-compliance. The leader with an authority-compliance management style has a high concern for production and a low concern for people.

2. The employees dislike the manager, but the department is one of the top performers.

B. Authority-compliance. The leader with an authority-compliance management style has a high concern for production and a low concern for people.

3. The manager‘s department has the low-producing employees with a low level of morale.

Yet, he doesn‘t do anything to improve the department.

A. Impoverished. The leader with an impoverished management style has low concern for both production and people.

4. The manager has the top performers and also has the highest morale.

E. Team. The leader with a team management style has a high concern for both production and people.

5. The manager is friends with everyone and they get along great, but the productivity level is one of the lowest in the company.

C. Country club. The leader with a country club management style has a high concern for people and a low concern for production.

6. The manager has been evaluated as having adequate morale and an average productivity level.

D. Middle-of-the-road. The leader with a middle-of-the-road management style has balanced, medium concern for both production and people.

Applying the Concept 12-2: Contingency Leadership Theory Using Exhibit 12-3, determine the appropriate leadership style under the given conditions. Place the letter A or B on the first line, and the situation number (between 1 and 8) on the second line.

A. Task-oriented situation 1, 2, 3, 8 B. Relationship-oriented situation 4, 5, 6, 7 7. Juanita gets along well with his employees, who make water bottles, and he is in control of his department.

A. Task-oriented situation 1. Juan has a good relationship, the job is repetitive, with strong power = 1.

8. John, the chair of a committee charged with recommending ways to increase organizational performance, is highly regarded by the volunteer members from a variety of departments.

B. Relationship-oriented situation 4. Relations are good, the task is non-repetitive, and power is weak = 4.

9. Usain oversees the assembly of mass-produced containers. He determines rewards and punishments, and is viewed as a hard-nosed boss.

B. Relationship-oriented situation 5. Relations are poor, the task is repetitive, and power is strong = 5.

10. Lakesha is a manager from the corporate planning staff; she helps departments plan.

She is viewed as being a dreamer who doesn‘t understand the company‘s various departments. Employees tend to be rude in their dealings with Lakesha.

A. Task-oriented situation 8. Relations are poor, the task is non-repetitive, and staff power is weak = 8.

11. Ted is a manager who oversees the processing of canceled checks for a bank. He is well liked by the employees, and enjoys hiring and evaluating his employees‘ performance.

A. Task-oriented situation 2. Relations are good, the task is repetitive, and power is weak = 2.

12. Carly, the principal of a school, assigns teachers to classes and other various duties. She hires and decides on tenure appointments. The school atmosphere is tense.

B. Relationship-oriented situation 7. Relations are poor, the task is non-repetitive, and power is strong = 7.

13. Aarti is well liked by her employees, who make all kinds of websites to customer specifications, and Aarti makes the hiring, promoting, discipline, and firing decisions.

A. Task-oriented situation 3. She has a good relationship, the job is non-repetitive, and she has strong power = 3.

14. Nyota‘s employees, who manufacture cardboard boxes, think she has a bad personality and tend to ignore what she says because her boss does their evaluations and determines pay raises.

B. Relationship-oriented situation 6. Ted has a poor relationship, the job is repetitive, and he has weak power = 6.

Applying the Concept 12-3: Leadership Continuum Refer to Exhibit 12-4 and indicate the leadership style exemplified in each statement by placing its number (between 1 and 7) on the lines below.

15. ―I‘d like your suggestion on how to resolve this, but I‘ll choose a solution and implement it.‖ 5. The leader is getting input but has the final say.

16. ―I selected you to serve on the task force, but you don‘t have to if you don‘t want to.‖ 4. The leader has presented a tentative decision subject to change.

17. ―Please take this letter to the mail room for me right away.‖ 1. The leader made the decision and announced it.

18. ―I‘ve made the vacation schedule. Let me know which week you want to take off.‖ 6. The leader is allowing the employees to make a decision within defined limits.

19. ―I just thought of a way to improve performance and make our jobs easier. You‘re going to think it‘s a great idea.‖ 2. The leader makes a decision and sells it.

20. ―You decide how to deal with this problem. You don‘t need me.‖ 7. The leader permits employees to make ongoing decisions.

21. ―Receipts for business meals under $50 are no longer needed. Any questions?‖ 3. The leader presents ideas and invites questions.

Applying the Concept 12-4: Situational Leadership Styles For each of the following situations, identify the maturity level of the employee and the leadership style the manager should use so that the job gets done.

A. Low maturity of employee: The manager should use the telling style.

B. Moderate to low maturity of employee: The manager should use the selling style.

C. Moderate to high maturity of employee: The manager should use the participating style.

D. High maturity of employee: The manager should use the delegating style.

22. One of your best team leaders, Tina, has told you about a team member not performing up to standard, so you tell her to handle the situation as she thinks is best.

D. High maturity of employee: The manager should use the delegating style. A best team leader is high maturity, and the manager delegated the situation to Tinna.

23. Your manager, Duane, told you to make a new change in work schedule. You know that Sandy is a good worker, but she will not like the change.

B. Moderate to low maturity of employee: The manager should use the selling style. Sandy being average is moderate to low maturity especially if she will not like the change. So Duane should ‗sell‘ her on the change in a positive way.

24. Candy‘s job is to clean off the tables quickly after diners leave. Candy is on her phone again.

A. Low maturity of employee: The manager should use the telling style, giving high structure and low consideration to get off the phone and do the job right.

25. George has never written a formal report, but you know he can do it with your encouragement and with minimum help from you.

C. Moderate to high maturity of employee: The manager should use the participating style. He needs low structure and high consideration to do the report.

26. You told Shinji exactly to do a job. However, he deliberately ignored your directions again. So, the job is not done correctly.

A. Low maturity of employee: The manager should use the telling style. Shinji needs to be given high structure and low consideration to do the job right.

27. Rookie employee Milani‘s training is progressing well, so you have decided to teach her a new task.

B. Moderate to low maturity of employee: The manager should use the selling style. She needs both high structure and consideration to do the new job.

Applying the Concept 12-5: Contemporary Leadership Theories For each of the following situations, identify the leadership theory A. Leader-Member Exchange (LMX) B. Strategic leadership C. Visionary leadership D. Charismatic leadership E. Transformational leadership

F. Transactional leadership G. Servant leadership H. Authentic leadership 28. My leader is really concerned about helping me succeed on the job.

G. Servant leadership. The leader is focusing on help others.

29. My leader has such a great personality that we all try out best to do a good job.

D. Charismatic leadership. The leader‘ personality is charismatic.

30. My leader does a great job of long-range planning to ensure the company‘s continuing success.

B. Strategic leadership. Long-range planning is strategic planning.

31. My leader is laid back and I‘m comfortable being myself with her.

H. Authentic leadership. The leader is using authentic behavior with the employee.

32. My leader encourages us to continually improve products and processes.

E. Transformational leadership. The leader wants continuing change.

33. My leader has a good relationship with each of our department members.

A. LMX. The lead developed good dyadic relationships.

34. My leader focuses on getting the day-to-day work done giving rewards for good performance and punishment if you break any rules.

F. Transactional leadership. The leader is focusing on social exchanges.

35. My leader knows that we will be driving flying cars in the future, and we are developing a prototype.

C. Visionary leadership. The leader has created a vision and is working to achieve it.

Join the Discussion Join the Discussion 12-1: Dilbert Through his cartoon character Dilbert, Scott Adams makes fun of managers. Adams distrusts top-level managers and has said that leadership is really about manipulating people to get them to do something they don‘t want to do when there may not be anything in it for them. Adams says that we may be hung up on leadership as part of our DNA. Apparently, we have always sought to put somebody above everybody else.

1. Do you agree with Adams that leadership is basically manipulation?

Answers vary.

2. Do we really need leaders?

Answers vary.

3. Is it ethical and socially responsible to make fun of managers?

Answers vary.

Join the Discussion 12-2: Leadership and Gender Are there differences in the leadership styles of men and women? Some researchers say that women tend to be more participative, relationship-oriented leaders and men more task-oriented.

However, others say that men and women are more alike as leaders than different and are equally effective.

1. Is it ethical and socially responsible to say that people of a particular gender make better leaders?

Answers vary.

2. Do you think men and women lead in the same way?

Answers vary.

3. Are men or women more ethical and socially responsible as leaders?

Answers vary.

4. Would you prefer to have a man or a woman as boss?

Answers vary.

Instructor Manual Chapter 13: Communication and Information Technology Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

13-1. Give an example of vertical (upward and downward), horizontal, and grapevine communication at a company where you work or have worked. (LO: 13-1) Over the summer, I worked for an ice cream shop. My boss, the owner, did not work at the ice cream shop. However, every day, he would call to give us any instructions for the day (downward vertical communication), to find out if we were busy, and to know how many cases of ice cream we sold that day (upward vertical communication). Throughout the day, my peers and I would communicate (horizontal communication) as we waited on customers, stocked the ice cream, cleaned up, etc. The owner was known as a playboy, so it was common for rumors to be spread (grapevine communication) about whom he was dating lately.

13-2. Give an example of a message that might be transmitted in a work setting. Be sure to illustrate the four steps in the communication process, state the channel, and note if feedback was given. (LO: 13-5) The following may be used if you are quitting your job because you found a better one: Step 1. I encoded the message and selected oral face-to-face communication.

Step 2. I told my boss at the end of the day.

Step 3. My boss decoded the message and decided to give me feedback.

Step 4. My boss responded with feedback saying that I had done a good job and that he was sorry to lose me. He wished me good luck in my future job.

13-3. Give two examples of different communication barriers you encountered at work.

Explain how each barrier could have been overcome. (LO: 13-6) Noise: My boss was out of town, and she called me from Chicago to tell me what time her flight would arrive at the Hartford airport, so I could pick her up. I was in my dorm room, which was full of people talking, and the music was blasting. It was so noisy I could hardly hear her. She told me to pick her up at 4:00 p.m., but I thought she said 2:00 p.m. So, I was at the airport two hours early. To overcome the barrier, I should have told everyone to be quiet and to turn down the music.

Perception: My boss told me to hang an advertised special poster in the left side of the window.

We have a large window. After I hung the poster, my boss said to move it up higher. I should have asked for details of where he wanted it the first time. The second time I asked, ―How many feet down from the top of the window do you want the poster?‖ 13-4. Give an example of an oral message and a written message you received at work, and specify the channel of each. (LO: 13-7) Oral message: My boss would always give me my assignments using face-to-face conversation.

Written message: All of the employees received a memo regarding the company picnic.

13-5. Recall a specific task that a boss assigned to you. Identify which steps in the face-toface message-sending process he or she did and did not use. (LO: 13-8) I had to do a mass mailing for my boss. My boss did not develop rapport (Step 1) or state the communication objective (Step 2); he just started by giving me the step-by-step instructions (Step 3). After he was done explaining how to do the task, he asked me to paraphrase what he had just told me to make sure I understood what to do (Step 4). He made sure I was able to finish it by the end of the day, and he checked on me periodically throughout the day see how it was going (Step 5).

13-6. Refer to the Self-Assessment. What is your weakest listening skill? Give an example of how your listening skills have had an impact on you at work. (LO: 13-9) I‘d have to say my weakest listening skill is tuning people out who do not agree with my views.

It impacts me at work because when I get into an argument, I don‘t really listen to the other person‘s point of view. Instead, I just press mine on the other person. What I need to do to

improve is paraphrase what the other person has said before I make my point. Paraphrasing will force me to listen.

13-7. Recall two oral messages you received and your responses to them. Identify your response style, and give examples of responses you might have given using two other response styles. (LO: 13-10) 1. Sender: This order needs to be ready by 5:00 p.m. today.

Me: (1) Why does it need to be ready by 5:00? Can‘t it wait until tomorrow? (Probing response) (2) I can‘t have it ready by 5:00. (Advising response) (3) I‘ll take care of it. (Reassuring response) 2. Sender: Please wait on that customer at the counter.

Me: (1) I‘ll be there in a minute after I put this merchandise back. (Reassuring response) (2) Why do I have to do it? (Probing response) (3) When do I get to go on break? (Diverting response) 13-8. Recall a situation in which a manager had to handle an emotional employee. Did the manager follow the guidelines for calming an emotional person? Did the manager use reflective, empathic responses? (LO: 13-11) The place where I used to work based raises on the cost of living and merit. My boss only gave me a raise based on the cost of living. I was angry because I thought I deserved a merit raise too, so I went to complain. My boss did not try to calm me down, nor was he empathic. He did not even explain why I did not get a merit raise. He just said, ―Just be glad you have a job. Don‘t complain and get back to work.‖ I was much angrier when he said this. I responded, ―Thanks for nothing‖ and went back to work. Our relations were cool after that.

13-9. How would you rate yourself on your ability to accept criticism without getting emotional and defensive? How could you improve your ability to accept criticism? (LO: 1312) I‘m not great at accepting criticism. When my boss criticizes me, I tend to become defensive and find excuses, or blame someone else, for the shortcoming. What I really need to do is just listen

without being so concerned about being caught making a mistake. I should realize that we all make mistakes. I should own up to them, view them as learning experiences, and work at not repeating the same ones again.

Additional Work Application Questions (not in the book) 13-1. Recall a past or present boss. How effective was this person at getting feedback? Was the boss open to feedback and aware of nonverbal communication? Did the boss ask questions and ask you to paraphrase? (LO: 13-8) My past boss was not good at getting feedback. She really was not open to feedback, especially criticism. She paid no attention to nonverbal communication. For example, I watched a few times when my boss gave instructions to others. I could see that employees had a look of confusion on their faces, but my boss just kept giving instructions without stopping to clarify things. She would question by saying, ―Any questions?‖ My boss never used paraphrasing with me.

Review Question Answers 13-1. What is the differences among vertical, horizontal, and grapevine communication?

Vertical communication is the flow of information both downward and upward through the organization chain of command. It is also called formal communication because information that flows this way is recognized as the officially sanctioned information. Horizontal communication is the flow of information between colleagues and peers. It is formal communication, but it does not follow the chain of command; instead, it is multidirectional. The grapevine is the informal flow of information of information in any direction throughout an organization. It is informal communication because it is not official or sanctioned by management.

13-2. What takes place during the information systems process?

Through the information systems process, input data are transformed or processed into output information.

13-3. What is the difference between encoding and decoding?

Encoding is the sender‘s process of putting the message into a form that the receiver will understand. Decoding is the receiver‘s process of translating a message into meaningful form.

13-4. What is filtering?

Filtering is the process of altering or distorting information to project a more favorable image.

13-5. What is the difference between nonverbal and oral and written communication?

Both oral and written communication uses words, but nonverbal doesn‘t use words.

13-6. What is the difference between setting and body language?

The setting refers to where the communication takes place (physical surroundings), whereas body language includes facial expressions, vocal quality, gestures, and posture.

13-7. What is media richness?

Media richness refers to the amount of information and meaning conveyed through a channel.

The more information and meaning, the ―richer‖ the channel is.

13-8. What should be included in your plan to send a message?

Before sending a message, you should answer these what, who, how, when, and where questions: What? What is the goal of the message? What do you want the end result of the communication to be?

Who? Determine who should receive the message.

How? With the receiver(s) in mind, plan how you will encode the message so that it will be understood. Select the appropriate channel(s) for the audience and situation.

When? When will the message be transmitted? Timing is important.

Where? Decide where the message will be transmitted (setting).

13-9. What are the four ways to get feedback on messages?

The four ways to get feedback on messages are as follows: (1) Be open to feedback. (2) Be aware of nonverbal communication. (3) Ask questions. (4) Paraphrase.

13-10. Why should you listen, analyze, and then check understanding?

You have to listen first so that you can hear the message. You analyze second so that you can think about, decode, and evaluate the message. You should check understanding third to be sure that the message has been communicated effectively.

13-11. Why is criticism important to the individual and organization?

Criticism should be used to improve performance.

Communication Skills Answers 13-1. Select an organization with which you are familiar. How can the flow of communication be improved?

Answers will vary.

13-2. Is the grapevine helpful or harmful to most organizations? Should managers try to stop grapevine communication? Why or why not?

Answers will vary. The grapevine can‘t be stopped, but managers can use it to help the firm.

13-3. Which e-commerce methods have you used? Which one do you use most often?

Answers will vary.

13-4. What is the relationship between information and the management functions?

Managers use information to plan, organize, lead, and control.

13-5. What is the difference between a computer network and an information network?

A computer network connects independent computers directly together (P2P). An information network connects all employees together, to suppliers, to customers, and to databases.

Components of the information network may not be linked together by a computer.

13-6. Wireless phones and handheld devices are blurring work and home life. Is this positive or negative? Should people stay connected and work while on vacation?

Answers will vary.

13-7. What does perception have to do with encoding and decoding?

Encoding and decoding are based on perception. As messages are transmitted, receivers perceive them and translate them so that they make sense. To overcome perception problems, when encoding, you need to consider how the other person will most likely perceive the message and try to encode and transmit it properly.

13-8. Which communication barrier do you think is the most common, and which barrier do you believe has the most negative effects on communication?

Answers will vary.

13-9. Which message transmission channel do you use most often in your personal and professional life? What is your strongest and weakest channel? How can you improve on your weakness?

Answers will vary.

13-10. When sending messages, how effective are you at checking the receiver‘s understanding? Can you improve? If so, how?

Answers will vary.

13-11. When receiving messages, how effective are you at listening? Can you improve? If so, how?

Answers will vary.

13-12. Which response style do you use most often?

Answers will vary.

Applying the Concept Answers Applying the Concept 13-1: Communication Flow Identify the form of communication flow occurring for each statement.

A. Vertical downward B. Vertical upward C. Horizontal–identify as between (1) peers or (2) departments D. Grapevine 1. ―Erica, I will email you the instructions for completing the assignment for me.‖ A. Vertical downward. It sounds like a manger is delegating as task to a subordinate.

2. ―Thomas, I just sold products to two new customers who want to set up charge accounts.

Please rush the credit check so we can increase business.‖ C (2). Horizontal/departmental. This is communication between colleagues in different departments.

3. ―Juanita, please take this package to the mailroom and have it sent out FedEx overnight for me.‖ A. Vertical downward. A manager is delegating down the chain of command.

4. ―Hey, Bubba, have you heard that Paul and Betty Sue were caught doing something they shouldn‘t have done?‖ D. Grapevine. This is gossip about a mistake that is going through the grapevine.

5. ―Arjun, will you please hold this so we can get it straight and finish the job?‖ C (1). Horizontal/peer. They are working on a job together as peers.

6. ―Kyra, here is the report you asked me to complete for you. Check it, and I‘ll make any changes you want.‖ B. Vertical upward. The manager had the authority to tell the other person to write a report (downward). The employee is now reporting upward with the report completed.

Applying the Concept 13-2: Communication Barriers Identify the communication barrier indicated by each statement.

A. Perception B. Information overload C. Channel selection D. Noise E. Trust and credibility F. Not listening G. Emotions H. Filtering

I. Language/culture 7. ―José, can you tell me what Juan is talking about? I can‘t understand him.‖ I. Language/culture. They don‘t seem to speak the same language.

8. ―Carlton, you shouldn‘t be upset, so just calm down.‖ G. Emotions. Being told to calm down out is a sign of emotions running high.

9. ―So, Billy Jean, do you understand?‖ Billy Jean doesn‘t respond, thinking, ―You just went through 14 steps, and I was lost back on step 2.‖ B. Information overload. The listener is so overwhelmed with all the information given, and he or she doesn‘t know what to say.

10. ―Yes, Deondre. We are right on schedule,‖ while thinking, ―We are actually behind, but we‘ll catch up.‖ H. Filtering. The person is making performance sound better than it actually is.

11. ―Paul, I said I‘d do it in a little while. It‘s only been 10 minutes, so why do you expect it to be done by now?‖ A. Perception. There is a difference in the interpretation of ―a little while.‖ 12. ―Kassandra, you don‘t know what you are talking about. I‘ll keep doing it my way.‖ E. Trust and credibility. If the person had credibility, the other person would do the job his or her way.

13. ―Ronnie, I don‘t like texting back and forth, so please call me so we can talk.‖ C. Channel selection. The person prefers a different channel.

14. ―Eliana, how many times do I have to tell you to stop using your personal phone at work when you are waiting on customers?‖ F. Not listening. The manager believes the phone is a distraction to communications 15. ―Joe, please shut the loud music off. I need to talk to you about your incident with Carlton.‖ D. Noise. Music can be a noise that distracts communications.

16. ―Teddy, will you please look at me when I‘m going over instructions with you?‖ F. Poor (Not) listening. To listen effectively, we need to have eye–mind connection.

Applying the Concept 13-3: Channel Selection For each of the communication situations, select the most appropriate channel for transmitting the message.

Oral communication A. Face-to-face B. Meeting C. Presentation D. Telephone Written communication E. Email/text F. Memo G. Letter H. Report I. Bulletin board, poster, newsletter 17. José is applying to colleges and asked you for a recommendation.

G. Letter. Colleges often ask for a letter of recommendation.

18. You are running late for a meeting and want your boss to know you are on your way and will be around five minutes late.

E. Email/text. A quick text is appropriate as most people check text instantly.

19. Your boss likes your creative idea for a new product and told you to come to a meeting with higher-level managers to pitch it to them.

C. Presentation. Speaking at the meeting is giving a presentation to managers.

20. HR came out with a new policy and wants to inform employees internally of the change.

F. Memo. Memos are used for sending internal information.

21. You are waiting for a UPS package, and you want to know if it is in the mailroom yet.

D. Telephone. The phone is the fastest way to find out if the package is at the mail room. To text, you would likely have to know the person in the mailroom and their personal number.

22. Employees have been leaving the lights on in the break room when no one is in it, so you decided to send a message to them to turn off the lights.

I. Poster. A sign on the wall near the light switch should help remind them to turn off the lights.

You could tell them of the problem at a meeting (b) or by memo (e) in addition to the poster.

23. You need to explain a new project to three of your 10 employees.

B. Meeting. Getting together as a group would be an effective way to give the assignment. A memo/written instructions (e) could also be used at the meeting.

24. Chris is late again, and you need to take some action.

A. Face-to-face. An oral discussion and reprimand are in order. Also, a memo/written warning (e) may be placed in the employee‘s file.

25. ―Katniss, I need you to go into our big database and run these statistics for me. Can you please have the numbers to me by noon?‖ H. Report. It is best to give a written record that can be placed in your file. Face-to-face communication (a) could also be used to reinforce the report.

Applying the Concept 13-4: Response Styles Identify the response style exemplified in each statement.

A. Advising B. Diverting C. Probing D. Reassuring E. Reflecting Betty Sue: Katniss, Do you have a minute to talk?

Katniss: Sure, what‘s on your mind?

Betty Sue: Being the AD [athletic director], you know that I use the weight room after the football team. Well, my track team has to return the plates to the racks, put the dumbbells back, and so forth. I don‘t get paid to pick up after the football team. After all, they have the use of the room longer than we do. I‘ve complained to Usain [the football coach], but all he says is that‘s the way he finds it, or that he‘ll try to get the team to do a better job. But nothing happens.

Katniss: 26. ―I want you to go and work it out with Usain.‖ A. Advising. To talk to Usain is giving directions or instructions.

27. ―Thanks for telling me about it; I‘ll talk to Usain to see what‘s going on.‖ D. Reassuring. In essence, the boss is saying, ―Don‘t worry; I‘ll take care of it.‖ 28. ―I almost forget to tell you, congratulations on beating UNH.‖ B. Diverting. Talking about UNH is changing the subject.

29. ―So you don‘t think it‘s fair for you and your team to pick up after the football team.‖ E. Reflecting. This statement essentially paraphrases the message to the sender.

30. ―How long have you been picking up after the football team?‖ C. Probing. Asking for details of the situation is probing.

Administrative Assistant (AA): Carl, do you have a minute to talk?

Boss: Sure, what‘s up, Mary?

AA: Are you aware of all the swearing people do in the operations department? It carries through these thin walls into my work area. It‘s disgusting.

31. ―So you don‘t like swearing—is that it?‖ E. Reflecting. This statement essentially paraphrases the message to the sender.

32. ―What specific swears being said do you find offensive?‖ C. Probing. Asking for details of the situation is probing.

33. ―No. I didn‘t know anyone was swearing because I don‘t spend much time in the ops department. But I‘ll look into it.‖

D. Reassuring. In essence, the boss is saying, ―Don‘t worry; I‘ll take care of it.‖ 34. ―Just ignore the swearing. Don‘t let it bother you.‖ A. Advising. To ignore the swearing is advice.

35. ―Are you going to the company picnic?‖ B. Diverting. Talking about health is changing the subject.

36. ―Why don‘t you talk to them about it?‖ A. Advising. Asking her to talk to them about the swearing is advice.

37. ―It seems like you find swearing offensive.‖ E. Reflecting. This statement essentially paraphrases the message to the sender.

Join the Discussion Join the Discussion 13-1: The Grapevine The grapevine is commonly used to spread rumors and gossip. Most grapevine information is harmless and informs employees of what is going on in the firm. However, some, especially talk regarding work-related matters and coworkers, can destroy trust and sabotage productivity.

1. Have you or has anyone you know been hurt by rumors or gossip? Explain the situation and how you or the other person was hurt.

Answers vary.

2. Do rumors and gossip help or hurt individuals and the organization?

Answers vary.

3. Is it ethical and socially responsible to spread rumors and gossip?

Answers vary.

4. Should employees gossip and spread rumors when they are not sure of the accuracy of the information they are spreading?

Answers vary.

5. How should managers handle rumors and gossip?

Answers vary.

Join the Discussion 13-2: Should Personal Cell Phones Be Banned at Work?

As discussed, employees are wasting a lot of time at work using either their companies‘ computers or their own personal cell phones. To help prevent employees from wasting time, organizations are monitoring the use of their technology and banning personal cell phones at work.

1. Is it ethical and socially responsible for employees to use company time and perhaps its technology for personal use? Should employees get paid for doing personal things at work?

Answers vary.

2. Is it ethical and socially responsible for companies to monitor employee use of their technology? Should they monitor?

Answers vary.

3. Is it ethical and socially responsible for companies to ban the use of employee personal technology on the job? Should they ban personal cell phones at work?

Answers vary.

Join the Discussion 13-3: Emotions and Communications We have discussed diversity in every chapter, so let‘s get right into the questions.

1. Should we leave our emotions at home and suppress them at work?

Answers vary.

2. Do you agree with this statement: ―You shouldn‘t confront others when you are emotionally angry because you can‘t be rational, you won‘t fix the problem, and you will hurt relationships?‖ Answers vary.

3. Do you believe women are more emotional than men? If so, why, and is the difference a positive or negative thing?

Answers vary.

4. Do you agree with this negative stereotype: ―Women are too emotional to make good managers?‖ Answers vary.

5. Do you believe men and women communicate differently? If so, how, and is the difference a positive or negative thing?

Answers vary.

Instructor Manual Chapter 14: Managing Control Systems, Finances, and People Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

14-1. Building on Work Applications 14-1 and 14-2 and using Exhibit 14-2, illustrate the systems process for a department you work for or have worked for within an organization.

Be sure to give examples of preliminary, concurrent, rework, and damage controls for your department. (LO: 14-1) Last summer, I worked for a company that made corrugated cardboard boxes. The input was the wood pulp mix that the machine transformed into cardboard, and the output sold was cardboard boxes. The customers were primarily businesses who used the boxes to ship products in and UHaul, who sold the boxes to renters of their trucks to pack in. Our company always received very good ratings from customers in terms of their satisfaction.

As a preliminary control, we would have to clean our work area regularly and follow safety procedures to prevent accidents. The quality-control supervisor checked our work in process as concurrent control. The boxes had to be cut for different sizes. If there was an error in size, it would be reworked later when a smaller size batch of boxes was being made. Being in production, we did not deal with damage control. However, I do recall hearing the plant manager yelling about having to take back an order from a customer because the size was wrong. This required extra shipping costs to take back the wrong ones and to ship the correct ones.

14-2. Give an example of the critical success factors for a job you have or had. Be sure to place them in priority order (most important first) and to explain why they are critical.

(LO: 14-2) The knife on the corrugator is the critical success factor. If it is not set up right, all the boxes will be cut in the wrong places. The key performance area lies with the knife person who must have the right measurements so the knife can cut in the correct place on each box.

14-3. Give an example of a constant, a periodic, and an occasional control method used by an organization you work for or have worked for. Identify each by name and explain why it is classified as such. (LO: 14-3) A constant control where I work is a standing plan that states that all purchases over $500 must be signed by the manager. Our department has a budget, which is a periodic control, for one year. Occasionally, my boss will ask me to check the credit rating on a customer and present a special report on my findings.

14-4. Identify the major source(s) of revenue and expenses where you work or have worked. (LO: 14-4) The major source of revenue where I worked was the sale of boxes. The major expenses were wages, the cost of material to make the boxes, machine repair, and shipping costs.

14-5. Identify a problem employee you observed on the job. Describe how the person affected the department‘s performance. (LO: 14-5) Joel works in my department. He has been having marital problems the last few months, and it has affected his performance. A couple of us have been forced to pick up his slack so we can get our orders done.

14-6. Identify a complaint you brought to a business. State the complaint and identify which steps in the customer-handling model the person did or did not follow. If you have never complained, interview someone who has. (LO: 14-5) I pay my bills using online banking. Macy‘s said I didn‘t pay my bill, but I did. I had to call and they said the money was in another account and they transferred it in. After paying bills for several months, I had to change the account number and I ended up overpaying the bill.

Additional Work Application Questions (not in the book) 14-1. Using Exhibit 14-1, identify the primary organizational inputs, transformation process, outputs, and customers of a firm you work for or have worked for. Also, identify the level of customer satisfaction. (LO: 14-1) Last summer, I worked for a company that made corrugated cardboard boxes. The input was the wood pulp mix that the machine transformed into cardboard, and the output sold was cardboard boxes. The customers were primarily businesses who used the boxes to ship products in and UHaul, who sold the boxes to renters of their trucks to pack in. Our company always received very good ratings from customers in terms of their satisfaction.

14-2. Building on Work Application 14-1, give examples of preliminary, concurrent, rework, and damage controls for an organization you work for or have worked for. (LO: 14-1) As a preliminary control, we would have to clean our work area regularly and follow safety procedures to prevent accidents. The quality-control supervisor checked our work in process as concurrent control. The boxes had to be cut for different sizes. If there was an error in size, it would be reworked later when a smaller size batch of boxes was being made. Being in production, we did not deal with damage control. However, I do recall hearing the plant manager yelling about having to take back an order from a customer because the size was wrong. This required extra shipping costs to take back the wrong ones and to ship the correct ones.

14-3. Building on Work Applications 14-1 through 14-3, illustrate the systems process you personally use within your department. Be sure to give examples of preliminary, concurrent, rework, and damage controls you personally use. (LO: 14-1) My actual job was to catch the boxes as they came out of the cutter and to stack them. My input was the boxes coming out of the cutter. My preliminary control was the standing plan procedures for properly catching and stacking them. My transformation process was to catch the boxes and stack them on a cart. My concurrent control was to throw any rejects in a separate pile and to straighten out the stacks, when needed. My output was carts of boxes that were sent to the shipping department for our customers. The pile of rejects were reworked or discarded. My only

damage control was giving a reason why the number of carts of boxes weren‘t ready on time to go to shipping.

14-4. Give an example of a standard from an organization you work for or have worked for that has the five characteristics of a complete standard. (LO: 14-2) As a waiter, my standard is to wait on no less than five tables (quantity) per hour (time) without messing up anyone‘s order (quality) at a salary of $11.00 per hour (cost), to be polite, and to remember to tell all the customers the specials of the day when I bring them their menu (behavior).

14-5. Identify a situation in which corrective action was needed to meet an objective/standard. Describe the corrective action taken to meet the objective/standard.

(LO: 14-2) Our objective was to finish an order by 5:00 p.m. The belt on the conveyor broke, and no one could work. The supervisor sent us all to lunch early and called maintenance to put on a new belt. As a result of this action, we were able to meet our objective.

14-6. Identify the major capital asset expenditures invested in by your present or a past organization. (LO: 14-4) The major capital assets are the plant building and equipment to make the boxes.

14-7. Does the company you work for or have worked for make its financial statements available to the public? If it does, get copies and review them. Also, does the organization develop operating, capital expenditures, and financial budgets? If it does, try to get copies for review. If you are not sure, call or talk to your present or past boss to find out. (LO: 144) I worked for McDonald‘s, which makes its financial statements available because it has shareholders. I was able to download them off the Internet. It does develop operating, capital expenditures, and financial budgets; however, I could not get a copy of them.

14-8. How would you rate your present or past boss‘s coaching ability? Explain your answer using critical incidents. (LO: 14-5)

On a scale of 1–10, my summer boss‘s coaching ability was an 8. He took time to tell us what we were doing wrong and right, and was always very polite.

Critical incident: Once I was stacking glasses incorrectly, and he came over and showed me the correct way. He nicely explained how easy it would have been for them to fall and hurt someone the way I was stacking them.

14-9. Review the discipline guidelines in Exhibit 14-11. Identify any guidelines your present or past boss did not follow. (LO: 14-5) My supervisor did not always discipline in private when rules were broken. I do not think he documented discipline, either. Sometimes the punishment did not fit the crime; he sent employees home without pay for minor errors.

14-10. Identify a complaint you brought to a manager. State the complaint and identify which steps in the complaint-handling model the manager did or did not follow. If you have never complained, interview someone who has. (LO: 14-5) When I worked part time at the local supermarket, I was always scheduled for both weekend nights. I went to my boss and complained that I would rather work during the week. The boss really didn‘t use the complaint-handling model. He just said, ―I need you for the weekends. If you don‘t want to work weekend nights, get another job.‖

Review Question Answers 14-1. Why is damage control important?

Damage control is action taken to minimize negative impacts on customers/stakeholders owing to faulty outputs. When a faulty output gets to the customer, damage control is needed. If you don‘t use damage control, you will lose customers.

14-2. Why should you focus on preliminary and concurrent types of control rather than rework and damage control?

Preventing problems and catching them before they have negative effects on customers create a win-win situation by minimizing warranty cost and maximizing customer satisfaction. Relying on damage and rework control is not effective because it is more costly to do things twice than to do them right the first time.

14-3. Who are the primary customers/stakeholders for the outputs of the operations, marketing, human resources, finance, and information functional areas/departments?

The marketing department is the primary stakeholder for the operations department outputs. The customer gets the product outputs through the marketing department. The human resources and information (MIS) departments provide employees/information as its outputs to all departments as their inputs. The finance department provides budgeted funds, financial statements, and other reports as inputs to all departments and payments to stakeholders.

14-4. What are the five areas of performance that standards measure?

Standards measure performance levels in the areas of quantity, quality, time, cost, and behavior.

14-5. Why is measuring performance important to an organization?

By measuring its performance, an organization determines to what extent it is successful and how to increase success. If you don‘t measure performance, you don‘t know how successful you are at meeting the organization‘s mission and objectives, nor how to improve performance.

14-6. What is shown in a performance report?

Performance reports usually show standards, actual performance, and deviations from standards.

14-7. What is the role of reinforcement in the control systems process?

Reinforcement lets employees know that they are meeting or have met objectives/standards and that you appreciate their efforts, which motivates them to higher levels of performance through continuous improvement.

14-8. What are the three constant control methods, the three periodic control methods, and the four occasional control methods?

Constant controls include self-control, clan control, and standing plans. Periodic controls include regular meetings and reports, budgets, and audits. The four occasional controls are observation, the exception principle, special reports, and project controls.

14-9. What are the three steps in the master budgeting process?

The three steps in the master budgeting process are to develop the (1) revenue and expenditure operating budgets, (2) capital expenditures budget, and (3) financial budgeted cash flow, income statement, and balance sheet.

14-10. Why is the capital expenditures budget the most important budget?

The capital expenditures budget is the most important budget because it is based on developing ways to bring in revenues through new and improved products and projects that will create customer value.

14-11. What is the difference between financial statements and financial budgets?

The difference between financial budgets and financial statements is that financial statements report past results while financial budgets project future results. Budgets are a preliminary control, and actual statements are a rework control.

14-12. What is the objective of coaching?

The objective of coaching is to maintain and improve performance.

14-13. How do managers commonly demotivate employees?

Managers commonly demotivate employees by giving more negative criticism than praise.

14-14. What is the performance formula, and how is it used with coaching?

The performance formula is: performance = ability × motivation × resources. Managers use it to determine the appropriate coaching action for the situation.

14-15. What are the three activities of management by walking around and what is the role of facilitating?

Management by walking around has three major activities: listening, teaching, and facilitating.

The role of facilitating is the process of taking action to help employees get their jobs done.

14-16. What are the differences among coaching, counseling, and disciplining?

When coaching, you are fine-tuning performance; with counseling and disciplining, you are dealing with a problem employee who is not performing to standards or is violating standing plans.

Communication Skills Answers 14-1. Recall a personal event that you had to help conduct, such as a party, shower, or wedding. Identify preliminary, concurrent, rework, and damage controls, as well as feedback. What did you learn from the experience and the textbook discussion that can help you to plan and control better in the future?

Answers will vary.

14-2. Apply the control systems process to your college education. What are your major objectives and standards? How do you measure and compare performance to your objectives and standards? What current and future corrective action have you taken? Do you reinforce your performance when meeting goals? If yes, how?

Answers will vary.

14-3. Employees tend to resist control and sometimes break the rules. Give examples of things you or others have done to resist controls.

Answers will vary.

14-4. How does your professor in this course use controls to reduce and/or eliminate cheating on tests and other assignments?

Answers will vary.

14-5. How confident are you in your ability to develop budgets and read financial statements? What experience have you had in developing budgets and reading financial statements?

Answers will vary.

14-6. Do you feel that managers should spend more time on coaching and MBWA techniques? Explain.

Answers will vary.

14-7. Which of the eight discipline guidelines is most relevant to you personally? Explain.

Answers will vary.

14-8. Can the need for discipline be reduced? If so, how?

Answers will vary.

Applying the Concept Answers Applying the Concept 14-1: Types of Control Identify the type of control used or required as A. Preliminary B. Concurrent C. Rework D. Damage 1. Teddy just tried on his new shirt, and there is a button missing.

D. Damage. The shirt likely will be exchanged, or possibly a refund.

2. Amita just got a new laptop computer, and one of the keys on the keyboard doesn‘t work.

D. Damage. The laptop most likely will be exchanged, or possibly fixed.

3. The Christmas shopping season begins, and Richard is scheduling employees‘ hours.

A. Preliminary. The manager is planning for the future staffing needs.

4. Patriot‘s Coach Bill Belichick‘s football team is behind at halftime, so he is sending in some new players.

B. Rework. The coach is changing the plan and trying something different to change the outcome.

5. Lee is ordering the food for the menu special for Friday night.

A. Preliminary. Lee is planning ahead.

6. As quality inspector Francis tried to start the Chevy Camaro, it would not start.

C. Rework. The car needs to be fixed before shipping.

Applying the Concept 14-2: Frequency and Methods of Control Identify the one primary method of control.

Constant A. Self B. Clan C. Standing plans Periodic D. Regular meetings and reports E. Budgets F. Audits Occasional G. Observation H. Exception principle I. Special reports J. Project 7. ―June, you know this is a no smoking area; put that out and get back to work.‖ C. Standing plans. This is a rule.

8. The manager is talking to an employee to find out why the project is behind schedule.

I. Special reports. The employee was asked by the boss to explain the problem.

9. ―Tina, signs are posted stating that helmets must be worn in the construction site.‖ C. Standing plans. The signs stating that helmets must be worn are giving a ―rule.‖ 10. ―Kenny, have you completed the monthly inventory for shortages?‖ F. Audit. A monthly check makes it periodic, and checking the amount of inventory is an audit.

11. Katniss, a team member, says, ―Tim, we really need you to pick up the pace if we are going to ship this order out on time today.‖ B. Clan. The team is an ongoing group, and the person is using clan, or some peer pressure to get time to work faster.

12. ―I didn‘t break it, Jamal. The thing just jammed and stopped working.‖ H. Exception principle. Jams can happen occasionally. An unexpected problem has come up so the employee is seeking help to fix it.

13. ―Helen, this isn‘t enough money to operate my department at full capacity.‖ E. Budgets. The amount of money for the year is a budget.

14. ―Deondre, I‘m putting you in charge of hiring and overseeing the IT consultant to transfer our information system to the cloud.‖ J. Project. IT systems change occasionally and are projects.

15. Manager Brianna‘s desk is directly facing the employees.

G. Observation. The manager‘s desk is facing the employees to provide occasional observation.

16. The accountant, Bonita, is out of town with a client, and her assistant is working alone in the office.

A. Self. The assistant is working alone without the boss to impose controls.

17. Tyson is at the monthly managers' meeting.

D. Regular meetings and reports. The meeting is monthly.

Applying the Concept 14-3: Financial Statements Identify the two accounts on the financial statement being affected by the following transaction examples (place a letter on each line and note that the same answer may be used on both lines): Instructor Note: Students often confuse cash (asset on balance sheet) and revenues, thinking cash goes on the income statement.

Income statement

A. Revenue B. Expenses balance sheet C. Assets D. Liabilities E. Owner equity 18. Boston Consulting Group (BCG) completed a one day consulting job and sends out the bill.

A. Revenues, and C. Assets. BCG increased both earned revenue income and cash receivable by providing a consulting service.

19. BCG sold stock that it bought as an investment.

C. Assets, and C. Assets. BCG receives an increase in cash and decrease in investments for the stock.

20. BCG sold some bonds to a major client.

C. Assets, and D. Liabilities. BCG receives cash for the bonds that are also a liability.

21. BCG received a check for its one-day consulting job.

C. Assets, and C. Assets. The check increases cash and decreases accounts receivable that goes on the balance sheet assets.

22. BCG paid its consultants their monthly pay.

B. Expenses, and C. Assets. Payroll is an expense that offsets consulting revenues on the income statement and it decreases cash.

23. BCG sold some stock to Ford.

C. Asset, and E. Owners‘ equity. Selling stock increases BCG owners‘ equity on the balance sheet, as Ford becomes a part owner of BCG, and BCG receives cash.

24. BCG paid its office leasing fee to Trump Towers.

B. Expenses, and C. Assets. Office rent is an expense on the income statement, and is paid with cash. Trump owns the building (it‘s their asset) and rents office space to BCG (its expense).

25. BCG makes a payment on the car fleet it bought from Ford.

C. Assets, and D. Liability. BCG bought the cars from Ford, which is a BCG asset, but when it makes cash payments for them, it decreases the liability to Ford on the balance sheet.

Applying the Concept 14-4: Guidelines for Effective Discipline Identify which guideline is being followed—or not being followed—in the following statements.

Use the guidelines in Exhibit 14-8 as the answers.

26. ―Katrina, this isn‘t fair. You never told me you would write me up just for being a few minutes late getting back from break.‖ A. Clearly communicate standing plans. The employee is complaining of unclear standards.

27. ―Sandy gave me a written warning for talking back to her again. She even made me sign it before putting it in my permanent record file.‖ G. Document discipline. The note is documentation of the discipline.

28. ―Joel, as part of orientation, you need to learn the rules. The computer program will teach them to you and give you a test to make sure you understand them.‖ A. Communicate standing plans. Rules and regulations are standing plans.

29. ―José got on my case again, so I‘ll be getting the silent treatment again.‖ H. When discipline is over, resume normal relations. Giving the silent treatment is not getting back to normal.

30. ―Tony, that‘s not fair; you shouldn‘t dock my pay for coming in late just once.‖ B. Punishment should fit the crime. The employee is stating that the punishment is too severe for the offense.

31. ―Chris, that‘s enough. Come into my office so that we can discuss your behavior.‖ F. Discipline in private. In the manager‘s office, others will not hear the discipline.

32. ―Did you see that? Karl really lost it and yelled at Erin.‖ E. Discipline immediately, but stay calm and get all the necessary facts before you discipline. It is best to stay calm and not to yell.

33. ―VP Edwardo comes back from break late all the time; why can‘t we?‖ C. Follow the standing plans yourself. The boss breaks the rules but expects others not to.

34. ―When I come in a couple of minutes late, Jim reprimands me. But when Wauneta does it, he never reprimands her.‖ D. Take consistent, impartial action when the rules are broken. The boss is being partial by playing favorites.

35. ―You‘re lucky, Harvey. Professor Davidson didn‘t take attendance today so you weren‘t marked absent.‖ D. Take consistent, impartial action when the rules are broken. The professor is being inconsistent by not taking attendance very day.

Join the Discussion Join the Discussion 14-1: Academic Grades Recall Join the Discussion 11-1 about academic standards in Chapter 11. Successful managers establish and maintain high expectations for all their employees. As Lou Holtz said, we need to set a higher standard. While students are doing less work than in previous years, grades continue to go up, a trend called grade inflation. At one time, most colleges used a set grade point average (GPA) to determine honors. But today, because of grade inflation, most colleges use a system of ranking GPAs. 1. Why are professors giving higher grades today than were given 5, 10, or 20 years ago?

Answers vary.

2. Are students who are putting in less time and getting higher grades being well prepared for a career with high standards after graduation?

Answers vary.

3. Is it ethical and socially responsible for professors to drop standards and for colleges to award higher grades today than they did 5, 10, or 20 years ago?

Answers vary.

4. Should colleges take action to raise standards? If so, what should they do?

Answers vary.

5. An important part of a professor‘s job is to evaluate student learning through grading.

Do you believe your learning is evaluated effectively? How could it improve?

Answers vary.

6. Do you find consistency among your professors‘ standards in terms of the work required in their courses and the grades given, or do some professors require a lot more work and some give lots of As and others lots of lower grades? Should colleges take action to improve consistency among professors‘ standards? If so, what should they do?

Answers vary.

Join the Discussion 14-2: Expenses PricewaterhouseCoopers (PwC) is a large global accounting firm. When its employees traveled to and from clients‘ facilities and for clients, PwC paid the cost and then charged travel expenses to the client. PwC‘s practice was to charge the regular rate, when in fact it was getting discounts.

Clients accused PwC of overcharging them for travel. PwC said there was nothing wrong with this practice, but it agreed to a several-million-dollar settlement to resolve an Arkansas lawsuit over travel rebates.

1. Is it ethical and socially responsible for PwC to charge the full rate for travel expenses when it gets discounts?

Answers vary.

2. If you worked for a company and knew it did this, would you say anything to anyone about it? If yes, to whom would you speak, and what would you say?

Answers vary.

Join the Discussion 14-3: Disciplining Ethical Behavior Unfortunately, some employees are rewarded for being unethical, while others are disciplined for being ethical. For example, some auto repair shops pay a commission for work done, so mechanics are paid more if they get customers to buy parts and services they don‘t need.

Mechanics who have a below-average number of repairs may be considered underachievers and may be pressured, through discipline, to perform unneeded repair work. Similarly, those in the medical field may push unnecessary tests or even treatments.

1. Have you ever been in or known of a situation in which people were rewarded for being unethical and disciplined for being ethical? If so, describe the situation.

Answers vary.

2. Is it ethical and socially responsible for firms to establish controls that reward unethical behavior and discipline ethical behavior to make more money?

Answers vary.

Instructor Manual Chapter 15: Operations, Quality, and Productivity Work Application Sample Answers Most of the answers are actual student answers or based on student answers. You may give these answers as part of your lecture before, after, or in place of getting student answers.

15-1. Using Exhibit 15-2, identify the operations system where you work or have worked based on product tangibility, customer involvement, flexibility, and resources. (LO: 15-2) I work for Sears.

1. We sell tangible products, but we offer service warranties on our appliances; therefore, we sell goods with a service, or mixed products.

2. We are a retailer that buys and sells make-to-stock items.

3. Sears uses batch-process operations to buy and individual process operations to sell.

4. Sears is a balance-intensity operation. There are high costs of buying a store in a good location, but the stores always have a lot of employees.

15-2. Identify the facility layout used where you work or have worked. Draw the physical arrangement of the facilities. (LO: 15-3) I worked at a pharmacy, which used a process layout with three aisles. When you walked in the store, on your right was Aisle 1. On this aisle was the soda fountain with stools and a cash register at the end, followed by candy and cigarettes. On your left in Aisle 3 were newspapers and magazines, followed by personal products such as shampoo and deodorant. In front of you in the middle, Aisle 2, was a freezer with ice cream in it and boxes of chocolates on top of it.

Behind the freezer, the center of the store was split in two. On the right was a greeting card

display on two sides and on the left was a display of over-the-counter drugs such as aspirin, digestive aids, and so on. Along the entire back wall was the pharmacy section with a cash register off-center to the right.

15-3. Give an example of a project in an organization for which you work or have worked that would be appropriate to schedule using a Gantt chart. (LO: 15-4) I was an intern at Springfield Marketing Services. On a wall in the office was a giant Gantt chart that showed the schedule of all training programs offered over the next six months by room number used for the training.

15-4. Identify the type of inventory and how it is controlled where you work or have worked. (LO: 15-4) I worked at a company that manufactured boxes. We used pulp raw material that the purchasing department bought for us. The pulp was transformed into boxes quickly, but most boxes were sent to work-in-process inventory, which the labeling department took to put the name of the buyer on them before sending them to the shipping department as a finished good. Concurrent control was used to inspect the boxes as they were made. The shipping department kept the finished goods until they were ready to send out. The boxes were usually error-free, so very little rework control was needed. If any of the boxes were damaged (smashed, punctured, etc.) or lost while in transit to customers, we would replace the customer‘s order free of charge.

15-5. Explain quality control in an organization where you work or have worked. (LO: 154) I worked as an auto mechanic. The service manager would assign cars to be repaired. When we were done, the service manager would test-drive the car to make sure it was okay. If it was, he‘d give it to the customer. If not, he‘d bring it back to the mechanic to fix again.

Additional Work Application Questions (not in the book) 15-1. Is your present or past organization concerned about time-based competition? If so, what functional areas are primarily responsible for speed? (LO: 15-3)

I work for Domino‘s Pizza, which is concerned about time-based competition. Both the pizza makers and delivery people still have to work fast to deliver, even though Domino‘s no longer has its guaranteed 30-minute delivery.

15-2. List the product mix for an organization for which you work or have worked. Be sure to identify the number of major product lines, the number of products within one of the major lines offered, and the mixture of goods and services within that one major line. (LO: 15-3) I work at McDonald‘s. There are eight different major product lines at McDonald‘s: sandwiches, side items and snacks, chicken (breast strips and McNuggets), salads/dressings, breakfast, desserts, McCafé, and beverages. Within the breakfast category, there are breakfast sandwiches (McMuffins and McGriddles), breakfast burritos, and additional breakfast items such as Hotcakes, hash browns, and Cinnamon Melts.

15-3. Identify which priority scheduling method(s) the organization for which you work or have worked uses. (LO: 15-4) I work in a supermarket. It uses the first come-first served method, as people are waited on in the order they get in line.

15-4. Give an example of a project in an organization for which you work or have worked that is suitable for scheduling using the planning sheet. (LO: 15-4) The Mail Box store taught me how to prepare mass mailings that would go out in bulk mail. The manager just told me the procedural steps and went over them multiple times. If Mail Box used the planning sheet, the manager could give it to new people to train them to do the job.

15-5. Give an example of a project in an organization for which you work or have worked that would be appropriate to schedule using a PERT network. (LO: 15-4) I was in the Navy, and PERT was actually developed for use in building the Polaris submarine weapon system back in 1958.

15-6. Are any of the gurus‘ quality contributions used where you work or have worked?

Explain how. (LO: 15-4)

I work for a Ford auto dealership. ―Quality Is Job One‖ signs are on the walls. We are repeatedly told that the customer comes first (Deming) and to do the job right the first time (Crosby). The computerized service diagnostic equipment uses statistical quality control (Shewhart). If something is out of the acceptable standard range, we recommend having it repaired. Juran‘s 80– 20 rule is followed when repairing cars. Our dealership invests heavily in quality because winning quality awards helps sales (Feigenbaum). At Ford Motor Company, the Taguchi design focus is taken very seriously.

Review Question Answers 15-1. What does the operations department do?

The operations department transforms resource inputs into product outputs.

15-2. Is the level of customer involvement highest with make-to-stock, assemble-to-order, or make-to-order operations?

Make-to-order operations are carried out only after an order has been received from a specific customer. Therefore, it has the highest level of customer involvement.

15-3. Which type of process operations is the most flexible, and which is the least flexible?

Individual-process operations are the most flexible and continuous-process operations are the least flexible.

15-4. Which type of process operation is most commonly used by retailers and service organizations?

Individual-process operations are most commonly used by retailers and service organizations.

15-5. Are services generally more capital or labor intensive than manufacturing? Why? Service organizations are generally less capital intensive than manufacturing firms because they tend to use lower levels of technology.

15-6. Why is it important to balance time-based competition and design?

While companies need to increase innovation and speed products to market, they also need to have quality products to succeed. Rushing through the design process can lead to operations problems that can‘t be easily fixed, in turn leading to sales problems and high repair costs.

15-7. Which two facility layouts are the most flexible? Which two layouts are the least flexible?

The process and cellular layouts are the most flexible. The product and fixed-position layouts are the least flexible.

15-8. Why is capacity planning so important?

Capacity planning is a decision made under conditions of uncertainty and high risk because it usually requires a large capital investment. Too large or too small a facility will have negative effects on the business.

15-9. Why is scheduling important?

Scheduling is the process of listing activities that must be performed to accomplish an objective.

Scheduling answers the planning questions: Which employees will make which products? What specific products will be produced? When will they be produced? Where will they be produced?

How will they be produced? How many of each will be produced?

15-10. What does a Gantt chart show that a planning sheet and PERT network don‘t show?

The Gantt chart has an advantage over the planning sheet in that it places progress toward the objective on the chart as a control technique. Another important advantage of the Gantt chart over the planning sheet and PERT is that it can show multiple projects on one chart.

15-11. When would you use a PERT network rather than a Gantt chart?

You would use a PERT network when you have some activities that are dependent and some that are independent.

15-12. What are the four types of inventory?

The four types of inventory include (1) raw materials, (2) work in process, (3) finished goods, and (4) in-transit goods.

15-13. What does material requirement planning integrate?

Materials requirement planning is a system that integrates operations and inventory control with complex ordering and scheduling.

15-14. What is the relationship between inventory and quality control?

Quality control is the process of ensuring that all types of inventory meet standards.

15-15. What are the five rules of customer relations?

The five rules of customer relations are as follows: 1. Put people before things.

2. Always be nice—no matter how busy you are.

3. Take your time with people.

4. Be polite; say ―please,‖ ―thank you,‖ and ―you‘re welcome.‖ 5. Don‘t discriminate with your service (treat everyone well).

15-16. Why should you measure productivity rather than just production?

If you measure only output production and it increases, you can be fooled into thinking you are doing a better job when in reality you may be doing a worse job because productivity has decreased.

Communication Skills Answers 15-1. Why are some companies (such as Apple) innovative when it comes to changing products and processes, while others (such as Eastman Kodak) are slow to innovate and change?

Answers will vary.

15-2. Can a standard make-to-stock product (such as soda) also be made to order? If so, how?

Yes. It is being done now by changing repetitive-process operations outputs to batch-process operations outputs. For example, you can now have your name put on M&M candy and NIKE sneakers.

15-3. Is the trend toward broader product mix with unrelated diversification? Why or why not?

No. The general trend is to keep the product mix to related diversification. The major reason for this trend is globalization. To be successful globally, many companies are specializing by staying with their core competencies.

15-4. Think about your career and the ideal job you are planning to obtain. Use Exhibit 152 to classify the operations systems and Exhibit 15-4 to identify the facility layout where you will work.

Answers will vary.

15-5. Assume you are planning a major event or project, such as a big wedding. (If you have an actual future event or project, use it rather than selecting an assumed event.)

Would you use the planning sheet, Gantt chart, or PERT to plan and control the event?

Why? Identify the major things that you need to plan for and make, and put them on the actual form using either Exhibits 15-5, 15-6, or 15-7 as a guide.

Answers will vary.

15-6. Many companies are now using radio-frequency identification (RFID) technology.

RFID is revolutionary and is helping businesses improve supply chain management.

However, critics are concerned about protecting people‘s privacy. For example, with RFID, businesses will better know consumers‘ shopping habits and purchases. Do you want businesses to know where you live and the products you have in your house? Explain.

Answers will vary.

15-7. What is your view of the quality of products you have purchased over the past year compared to previous years? Did you have to return and exchange products or have them repaired? Do you think that quality is getting better with time?

Answers will vary.

15-8. The balanced scorecard (BSC) calls for measuring performance in four areas. If a business is making good profits, should it bother with the other three non-financing measures? Why or why not?

Yes. Customer service performance, internal business performance, and learning and growth performance all contribute to financial performance. If you don‘t know if you are satisfying your

customers, you can lose them. If you don‘t increase internal business performance, competitors may get an advantage. If you don‘t have satisfied employees, they will not be motivated to work hard.

Applying the Concept Answers Applying the Concept 15-1: Level of Customer Involvement Identify each product by its level of customer involvement.

A. Make-to-stock B. Assemble-to-order C. Make-to-order 1. Haines underwear at Costco.

A. Make-to-stock. Underwear is a standardized prepackaged item.

2. UPS delivers a package from Walmart to a customer.

C. Make-to-order. The order has been received from the customer. Therefore, there is a high level of customer involvement in shipping it to the specific address.

3. TheaterSeat Store chairs with or without subwoofer speakers.

B. Assemble-to-order. When you put a subwoofer in the chair, it is assembled—or no longer made to stock.

4. A bag of Lays chips by Frito-Lay. A. Make-to-stock. Snack foods are standardized prepackaged items.

5. A Dell laptop at a Best Buy store.

A. Make-to-stock. The laptop in a store is a standard product. The customer has a low level of involvement because he or she either takes the product as is or doesn‘t buy it.

6. A message at Cannon Ranch Resort & Spa. C. Make-to-order. The message is made-to-order on a specific customer. The customer has to be there, which requires a high level of involvement.

7. Chocolate cream in a sugar cone at Helen‘s Homemade Ice Cream.

B. Assemble-to-order. An ice cream cone is a standard product. The ice cream in a sugar cone is a simple customized feature. The customer has to be there to order it; therefore, there is a moderate level of involvement. Some may argue that it is made to order—it‘s not always easy to tell the difference.

Applying the Concept 15-2: Flexibility of Operations Identify the operations system that would be used to produce each product.

A. Continuous process operations (CPO) B. Repetitive process operations (RPO) C. Batch process operations (BPO) D. Individual process operations (IPO) E. Project process operations (PPO) 8. Dominos selling and delivering pizza.

D. IPO. Dominos gets individual orders to make the pizza.

9. An LG washing machine.

B. RPO. Appliances are commonly made on an assembly line.

10. A swimming pool installed by Teddy Bear Pools.

E. PPO. Swimming pools are installed at the customer‘s site.

11. The asphalt delivered for the driveway at a new house.

A. CPO. Hot top is not delivered in discrete units; it continuously flows until you fill the driveway.

12. Packages of Kirland white, whole wheat, and rye breads.

C. BPO. Because bread has a variety of grains that can be easily made on the same machine, it is most likely baking in batches.

13. The new library replacement Learning Commons built at Springfield College.

E. PPO. Project process operations are used in the construction industry.

Applying the Concept 15-3: Facility Layout Identify the facility layout that would be used to produce each product.

A. Product B. Process C. Cellular D. Fixed-position 14. Dominos delivery of its pizza.

D. Fixed-position. Dominos brings the pizza to the customers.

15. The office layout of a McDonald‘s manager.

C. Cellular. Most offices use a cellular layout as it saves time.

16. A man walks into a Target store to buy some t-shirts.

B. Process. Commonly used in retail. The man would go directly to the men‘s department.

17. Meals being made at TGI Fridays restaurant.

C. Cellular. Most restaurants use a cellular layout as it saves time when preparing food (sitting and serving are not its operations).

18. A Camaro car being built in a GM plant.

A. Product. Most traditional automotive plants use repetitive-process operations in which the automobiles are made on an assembly line.

19. A lawn being mowed by A&M Landscaping.

D. Fixed-position. The business must go to the customer to do the work.

20. A woman comes to Yale Hospital to have an operation.

B. Process. The women would go to the operating ward.

Applying the Concept 15-4: Scheduling Tools Select the most appropriate scheduling tool for each situation.

A. Planning sheet B. Gantt chart C. PERT network 27. You want a tool to schedule the making of five products on three different types of machines.

B. Gantt chart. Gantt charts can show the progress of multiple products.

22. You want a tool for building a new restaurant.

C. PERT network. Building an office building requires a set sequence of relatively complex activities.

23. You want a tool to develop a procedure for a new method of reporting accidents.

A. Planning sheet. Planning sheets are good for developing procedures.

24. You want to use a tool to develop procedures for opening and closing the retail store.

A. Planning sheet. Planning sheets are good for developing procedures.

25. You want to use a tool to schedule training classes in different rooms.

B. Gantt chart. Gantt charts are good for allocating room resources to courses so you can see at a glance which rooms are being used when, why, and by which program.

26. You want to use a tool for building a new submarine.

C. PERT network. Building a new submarine will have both dependent and independent activities. PERT was first developed to build submarines, so that is why I use this example.

Applying the Concept 15-5: Measuring Productivity The standard monthly productivity rate in your department is

For the first five months of the year, calculate the current productivity rate and show it as a ratio and a percentage. Also, calculate the percentage productivity change, compared to the standard, stating whether it is an increase or a decrease.

27. January: outputs of 6,200, inputs of $9,000 ______ ratio, ______%, increase/decrease of ______%.

0.69:1 ratio, 69%, increase/decrease of 2.99%.

28. February: outputs of 6,000, inputs of $9,300 ______ ratio, ______%, increase/decrease of ______%.

0.65:1 ratio, 65%, increase/decrease of 2.99%.

29. March: outputs of 6,300, inputs of $9,000 ______ ratio, ______%, increase/decrease of ______%.

0.70:1 ratio, 70%, increase/decrease of 4.48%.

30. April: outputs of 6,300, inputs of $8,800 ______ ratio, ______%, increase/decrease of ______%.

0.72:1 ratio, 72%, increase/decrease of 7.46%.

31. May: outputs of 5,900, inputs of $9,000 ______ ratio, ______%, increase/decrease of ______%.

0.66:1 ratio, 66%, increase/decrease of 1.49%.

32. June: outputs of 6,300, inputs of $9,300 ______ ratio, ______%, increase/decrease of ______%.

0.68:1 ratio, 68%, increase/decrease of 1.49% 33. July: outputs of 6,000, inputs of $9,000 _____ ratio, ______%, increase/decrease of ______%.

0.67:1 ratio, 67%, standard meet, NO increase/decrease of 0% change from standard.

Join the Discussion Join the Discussion 15-1: Factory Conditions Many companies in the past, including Gap, have been criticized for not monitoring factory conditions. To address the criticism, the firm set standards for its manufacturers and developed a thorough factory inspecting system. Gap‘s vendor compliance officers inspect factories around the world and check compliance with Gap factory standards. These standards include suppliers not employing anyone under the age of 14 years and factories not permitting physical or nonphysical abuse. Gap will terminate its business relationship or require the factory to implement a corrective action plan if this code is violated. In fact, since 2003, Gap has closed around 200 factories owing to persistent or severe violations of standards.

1. Is it ethical and socially responsible for Gap to revoke contracts, causing poor workers to lose their jobs?

Answers vary.

2. Is it ethical and socially responsible to Gap‘s stockholders to pay higher labor costs than necessary, thus possibly reducing profits and their dividends?

Answers vary.

Join the Discussion 15-2: Social Accountability International Social Accountability International (SAI; www.sa-intl.org) is a U.S.-based nonprofit organization dedicated to the development, implementation, and oversight of voluntary verifiable social accountability standards. SAI works to improve workplaces and combat sweatshops through the expansion and further development of the current international workplace standards.

SAI gets key stakeholders to develop consensus-based voluntary standards and promotes understanding and implementation of standards worldwide. Like ISO 9000 certification, SA8000 certification verifies compliance of qualified organizations with international workplace standards.

1. Should global multinationals eliminate sweatshops by having SA8000-certified facilities?

Answers vary.

2. Should global multinationals require all their suppliers to get SA8000 certification?

Answers vary.

3. How might working toward SA8000 certification affect cost, revenues, and profits?

Answers vary.