Cross cultural management essential concepts 4th edition thomas test bank 1

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Cross Cultural Management Essential Concepts 4th Edition Thomas

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Chapter 5: The Manager as Decision-Maker: Cross-Cultural Dimensions of Decision-Making

Multiple Choice

1. The study of managerial decision-making is typically divided into approaches about what managers should do and approaches about what managers actually do.

A. descriptive, predictive

B. prescriptive, descriptive

C. diagnostic, descriptive

D. predictive, prescriptive

Ans: B

Cognitive Domain: Analysis

Answer Location: Rational Decision-Making

Difficulty Level: Medium

2. On the side of managerial decision-making, the rational or optimizing model of decisionmaking is based on a set of assumptions about how a decision should be made.

A. descriptive

B. prescriptive

C. diagnostic

D. predictive

Ans: B

Cognitive Domain: Comprehension

Answer Location: Rational Decision-Making

Difficulty Level: Medium

3. In the study of managerial decision-making, the goal of the rational decision-maker is to make a(n) choice between specific, clearly defined alternatives.

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

A. optimal

B. minimal

C. weighted

D. prescriptive

Ans: A

Cognitive Domain: Comprehension

Answer Location: Rational Decision-Making

Difficulty Level: Medium

4. Which of the following is NOT a step in the rational decision process?

A. Select the optimal solution

B. Weight the problem

C. Generate the alternatives

D. Identify decision criteria

Ans: B

Cognitive Domain: Analysis

Answer Location: Box 5.1 Steps In the Rational Decision Process

Difficulty Level: Medium

5. In the ______ step of the rational decision process, managers must recognize that a decision is needed and identify the problem.

A. weight decision criteria

B. evaluate the alternatives

C. problem definition

D. identify decision criteria

Ans: C

Cognitive Domain: Comprehension

Answer Location: Box 5.1 Steps in the Rational Decision Process

Difficulty Level: Easy

6. Liam is working his way through the rational decision process. Right now, he is trying to identify all the conditions that should be considered. Liam is at the ______ stage of rational decision-making.

A. select the optimal solution

B. weight decision criteria

C. generate the alternatives

D. identify decision criteria

Ans: D

Cognitive Domain: Application

Answer Location: Box 5.1 Steps in the Rational Decision Process

Difficulty Level: Medium

7. Emma is making a decision about which of her subordinates to promote. She has decided which skills are important to the decision. Right now, she is struggling to identify which skills she should give the highest priority in her decision. Emma is at the ______ stage of rational decision-making.

A. problem definition

B. weight decision criteria

C. generate the alternatives

D. evaluate the alternatives

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

Ans: B

Cognitive Domain: Application

Answer Location: Box 5.1 Steps in the Rational Decision Process

Difficulty Level: Easy

8. In the ______ step of the rational decision process, the decision-maker needs to identify all possible ways to satisfy the decision criteria.

A. identify decision criteria

B. generate the alternatives

C. select the optimal solution

D. evaluate the alternatives

Ans: B

Cognitive Domain: Comprehension

Answer Location: Box 5.1 Steps in the Rational Decision Process

Difficulty Level: Medium

9. Noah is trying to pick a new vendor for his organization. He has several criteria for his choice, but the most important one is that vendor be environmentally conscious. As Noah compares each vendor to his criteria, he is in the ______stage of rational decision-making.

A. evaluate the alternatives

B. problem definition

C. select the optimal solution

D. criteria consideration

Ans: A

Cognitive Domain: Comprehension

Answer Location: Box 5.1 Steps in the Rational Decision Process

Difficulty Level: Medium

10. In the ______ step of the rational decision process, the decision-maker multiplies the expected effectiveness of each alternative on each criterion times the weighting of each criterion for each solution.

A. generate the alternatives

B. problem definition

C. identify decision criteria

D. select the optimal solution

Ans: D

Cognitive Domain: Comprehension

Answer Location: Box 5.1 Steps in the Rational Decision Process

Difficulty Level: Medium

11. Managers from cultures with a orientation, such as the United States, might be prone to identify a situation as a problem to be solved.

A. doing

B. being

C. restricted

D. satisficed

Ans: A

Cognitive Domain: Comprehension

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

Answer Location: Cultural Differences in the Optimization Model

Difficulty Level: Medium

12. cultures, such as the United States and France, are likely to have decision-making authority vested in only a few high-ranking individuals

A. Prescriptive

B. Vertical individualist

C. Horizontal collectivist

D. Being

Ans: B

Cognitive Domain: Comprehension

Answer Location: Cultural Differences in the Optimization Model

Difficulty Level: Medium

13. cultures are likely to push decision-making well down in the organizational structure and involve large numbers of people.

A. Normative

B. Vertical individualist

C. Doing

D. Horizontal collectivist

Ans: D

Cognitive Domain: Comprehension

Answer Location: Cultural Differences in the Optimization Model

Difficulty Level: Medium

14. Regardless of normative cultural variation, the optimization decision model assumes that decisionmakers can do all of the following EXCEPT:

A. accurately assess the implications of each alternative

B. identify all decision criteria

C. make decisions in the same amount of time

D. be aware of all available alternatives

Ans: C

Cognitive Domain: Analysis

Answer Location: Limits to Rationality

Difficulty Level: Medium

15. Individual judgment is in its ability to be rational because decision-makers often must deal with incomplete information about the problem, the decision criteria, and even their own preferences.

A. bounded

B. unbounded

C. weighted

D. satisficed

Ans: A

Cognitive Domain: Comprehension

Answer Location: Limits to Rationality

Difficulty Level: Medium

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

16. Harper has limited time to make a decision about which marketing plan to use. She does not know much about marketing strategy, but she will apply what she can rather than trying to gather all the information. Harper is using the ______ model of decision-making.

A. doing

B. optimizing

C. being

D satisficing

Ans: D

Cognitive Domain: Application

Answer Location: Limits to Rationality

Difficulty Level: Medium

17. Because of limits to rationality, decision-makers most often rather than optimize.

A. weight

B. generate

C. satisfice

D. identify

Ans: C

Cognitive Domain: Comprehension

Answer Location: Limits to Rationality

Difficulty Level: Medium

18. The ______ model of decision-making suggests that decision-makers use one of four decision styles to cope with the psychological stress of making a decision: vigilance, complacency, defensive avoidance, and hypervigilance

A. doing

B. satisficing

C. normative

D. conflict

Ans: D

Cognitive Domain: Comprehension

Answer Location: Cultural Constraints on Rationality

Difficulty Level: Medium

19. Which of the following is NOT a decision style used to cope with the psychological stress of making a decision in the conflict model of decision-making?

A. vigilance

B. optimizing

C. defensive avoidance

D. hypervigilance doing

Ans: B

Cognitive Domain: Analysis

Answer Location: Cultural Constraints on Rationality

Difficulty Level: Hard

20. In the conflict model of decision-making, the decision style of ______ is a pattern consisting of carefully collecting facts and considering alternatives.

A. vigilance

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

B. defensive avoidance

C. hypervigilance

D. complacency

Ans: A

Cognitive Domain: Comprehension

Answer Location: Cultural Constraints on Rationality

Difficulty Level: Medium

21. In the conflict model of decision-making, the decision style of ______involves either ignoring the decision completely or simply taking the first available course of action.

A. hypervigilance

B. interdependence

C. hypervigilance

D. complacency

Ans: D

Cognitive Domain: Comprehension

Answer Location: Cultural Constraints on Rationality

Difficulty Level: Medium

22. In the conflict model of decision-making, the decision style of ______ involves passing the decision off to someone else, putting off the decision, or devaluing the importance of making a decision.

A. complacency

B. vigilance

C. defensive avoidance

D. interdependence

Ans: C

Cognitive Domain: Comprehension

Answer Location: Cultural Constraints on Rationality

Difficulty Level: Medium

23. In the conflict model of decision-making, the decision style of ______ involves making a hasty, illconceived decision.

A. complacency

B. hypervigilance

C. vigilance

D. interdependence

Ans: B

Cognitive Domain: Comprehension

Answer Location: Cultural Constraints on Rationality

Difficulty Level: Medium

24. Ethan was supposed to make a decision about when the new interns would be hired. Rather than decide, he ignored making the decision until the deadline past. In the conflict model of decision-making, it would appear that Ethan’s decision style is ______.

A. hypervigilance

B. interdependence

C. hypervigilance

D. complacency

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

Ans: D

Cognitive Domain: Comprehension

Answer Location: Cultural Constraints on Rationality

Difficulty Level: Medium

25. Mason’s boss asked him to run the staff meeting while she was on a business trip. Instead of doing so, Mason asked Ava to run the meeting. In the conflict model of decision-making, it would appear that Mason’s decision style is ______.

A. complacency

B. vigilance

C. defensive avoidance

D. interdependence

Ans: C

Cognitive Domain: Application

Answer Location: Cultural Constraints on Rationality

Difficulty Level: Medium

26. Isabella decided to cancel her flight at the last minute so she could have lunch with a colleague after a meeting. Because she made the decision in haste, she did not realize that the cancelled flight would cost her a large amount of money and keep her from returning to the office on time. In the conflict model of decision-making, it would appear that Isabella’s decision style is ______.

A. complacency

B. hypervigilance

C. vigilance

D. interdependence

Ans: B

Cognitive Domain: Comprehension

Answer Location: Cultural Constraints on Rationality

Difficulty Level: Medium

27. ______ are rules of thumb (cognitive tools) that people use to simplify decision-making.

A Heuristics

B Availability

C Representativeness

D Anchoring

Ans: A

Cognitive Domain: Knowledge

Answer Location: Heuristics

Difficulty Level: Medium

28. Which of the following is NOT one of the three general heuristics that are used to simplify decisionmaking?

A. anchoring and adjustment

B. representativeness

C. stereotyping

D. availability

Ans: C

Cognitive Domain: Comprehension

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

Answer Location: Heuristics

Difficulty Level: Medium

29. influences managers’ judgments of the frequency, probability, or likely causes of an event.

A Representativeness

B Anchoring

C Heuristics

D Availability

Ans: D

Cognitive Domain: Comprehension

Answer Location: Availability

Difficulty Level: Medium

30. Managers often ignore base rates in favor of how well a particular example matches their expectation. ______can overrule the logic of probability.

A. Availability

B. Representativeness

C. Adjusting

D. Heuristics

Ans: B

Cognitive Domain: Comprehension

Answer Location: Representativeness

Difficulty Level: Medium

31. A common decision bias relates to an unrealistically positive ______, which is stronger in people with an independent self-concept.

A reward allocation

B deference

C motivation

D self-evaluation

Ans: D

Cognitive Domain: Comprehension

Answer Location: Motivational Biases in Decision-Making

Difficulty Level: Medium

32. ______ criteria include equity, equality, need, and seniority.

A. Deference

B. Reward allocation

C. Unrealistically positive self-evaluation

D. Independent self

Ans: B

Cognitive Domain: Knowledge

Answer Location: Selection and Reward Allocation Decisions

Difficulty Level: Easy

33. In hierarchical societies with high-power distance, there is a strong preference for over in reward allocation decisions.

A. equity, equality

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

B. seniority, equity

C. need, equality

D. deference, equity

Ans: A

Cognitive Domain: Analysis

Answer Location: Selection and Reward Allocation Decisions

Difficulty Level: Hard

34. In reward allocation decisions, ______ implies that rewards are based on performance

A. nurturance

B. deference

C. seniority

D. equity

Ans: D

Cognitive Domain: Comprehension

Answer Location: Selection and Reward Allocation Decisions

Difficulty Level: Easy

35. The emphasis on in collectivist cultures suggests that fairness might be perceived to result from equality as opposed to equity in reward allocation.

A. harmony

B. need

C. equity

D. nurturance

Ans: A

Cognitive Domain: Comprehension

Answer Location: Selection and Reward Allocation Decisions

Difficulty Level: Medium

36. Collectivist societies also show a higher propensity to allocate rewards according to than do individualists.

A. need

B. equality

C. nurturance

D. deference

Ans: A

Cognitive Domain: Comprehension

Answer Location: Selection and Reward Allocation Decisions

Difficulty Level: Medium

37. Collectivist cultures might be more prone than individualists to see reward allocation based on as fair.

A. equity

B. seniority

C. skills

D. deference

Ans: B

Cognitive Domain: Comprehension

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

Answer Location: Selection and Reward Allocation Decisions

Difficulty Level: Medium

38. A philosophy is a set of principles used to decide what is right or wrong.

A. ethics

B. selective

C. cognitive

D. moral

Ans: D

Cognitive Domain: Comprehension

Answer Location: Moral Philosophies

Difficulty Level: Medium

39. ______ models focus on the outcomes or consequences of a decision to determine whether the decision is ethical.

A. Consequential

B. Cognitive

C. Utilitarianism

D. Consequences

Ans: A

Cognitive Domain: Comprehension

Answer Location: Consequential Models

Difficulty Level: Medium

40. ______ is the moral doctrine that we should always act to produce the greatest possible balance of good over harm for everyone affected by our decision.

A Utilitarianism

B Moral principle

C Cognitive morals

D Outcomes

Ans: A

Cognitive Domain: Comprehension

Answer Location: Consequential Models

Difficulty Level: Medium

41. Rule utilitarians espouse the view that, if followed, will maximize the benefits to all and can be used as a shortcut to the complexity of evaluating the utility of each decision.

A. cognitive morals

B. consequences

C. utilitarianism

D. general moral rules

Ans: D

Cognitive Domain: Comprehension

Answer Location: Consequential Models

Difficulty Level: Medium

42. principles hold that human beings have certain fundamental rights and that a sense of duty to uphold these rights is the basis of ethical decision-making rather than a concern for consequences

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

A. Consequences

B Deontological

C Cognitive morals

D Moral principle

Ans: B

Cognitive Domain: Comprehension

Answer Location: Deontological or Rule-Based Models

Difficulty Level: Medium

43. In cultural relativism, are legitimate only to the extent that they reflect the habits and attitudes of a given culture.

A. outcomes

B. moral concepts

C. cognitive morals

D. utilitarianism

Ans: B

Cognitive Domain: Comprehension

Answer Location: Cultural Relativism

Difficulty Level: Medium

44. implies that one should not impose one’s own ethical or moral standards on others and that international decisions should be evaluated in context.

A. Cognitive morals

B. Moral principle

C. Cultural relativism

D Utilitarianism

Ans: C

Cognitive Domain: Comprehension

Answer Location: Cultural Relativism

Difficulty Level: Medium

45. ______ reflect principles so fundamental to human existence that they transcend religious, philosophical, or cultural differences.

A Habits

B Hypernorms

C. Control

D. Ethical dilemma

Ans: B

Cognitive Domain: Comprehension

Answer Location: Cultural Relativism

Difficulty Level: Medium

46. moral development is an approach to understanding ethical decision-making that focuses on the mental determination of right and wrong based on values and social judgments.

A. Situational

B Deontological

C Hypernormal

D Cognitive

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

Ans: D

Cognitive Domain: Comprehension

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

47. Which of the following is NOT one of the six stages of moral development?

A Obedience and punishment.

B Interpersonal accord, conformity, mutual expectations

C Instrumental purpose and exchange

D Deontology

Ans: D

Cognitive Domain: Analysis

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

50. In the stages of moral development model, the stage involves sticking to rules to avoid physical punishment and obedience for its own sake.

A. social accord and system maintenance.

B. interpersonal accord, conformity, mutual expectations

C. instrumental purpose and exchange

D. obedience and punishment

Ans: D

Cognitive Domain: Comprehension

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

51. In the stages of moral development model, the ______ stage involves the following rules only when it is in one’s immediate interest and viewing right as an equal exchange, a fair deal.

A principled perspective

B interpersonal accord, conformity, mutual expectations

C instrumental purpose and exchange

D obedience and punishment

Ans: C

Cognitive Domain: Comprehension

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

52. In the stages of moral development model, the ______ stage involves stereotypical “good” behavior and living up to what is expected by people close to you

A. social accord and system maintenance

B. interpersonal accord, conformity, mutual expectations

C. instrumental purpose and exchange

D. universal ethical principles

Ans: B

Cognitive Domain: Comprehension

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

53. In the stages of moral development model, the ______ stage involves fulfilling duties and obligations to which you have agreed and contributing to society.

A social accord and system maintenance

B interpersonal accord, conformity, mutual expectations

C universal ethical principles

D obedience and punishment

Ans: A

Cognitive Domain: Comprehension

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

54. In the stages of moral development model, the ______ stage involves being aware that people hold a variety of values and that rules are relative to the group.

A. social accord and system maintenance.

B. social contract and individual rights

C. instrumental purpose and exchange

D. obedience and punishment

Ans: B

Cognitive Domain: Comprehension

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

55. In the stages of moral development model, the ______ stage involves following self-chosen ethical principles and acting in accordance with principles when laws violate these principles.

A. universal ethical principles

B interpersonal accord, conformity, mutual expectations

C instrumental purpose and exchange

D obedience and punishment

Ans: A

Cognitive Domain: Comprehension

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

56. Stages in the stages of moral development model relate to age-based stages in human development. In general, children under the age of 9 are at

A. level 5

B. level 1

C. level 4

D. level 3

Ans: B

Cognitive Domain: Knowledge

Answer Location: Cognitive Moral Development

Difficulty Level: Easy

57. Which of the following is NOT one of the four steps involved in the process of ethical decisionmaking?

A identifying the ethical nature of an issue

B establishing ethical intent

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

C. selecting an ethical framework to apply

D making an ethical judgment

Ans: C

Cognitive Domain: Analysis

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

58. ______ is the extent to which one believes that an outcome is the result of one’s own efforts

A Equity

B Locus of control

C. Ethics

D. Situational factors

Ans: B

Cognitive Domain: Comprehension

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

59. ______ is the extent to which people depend on information from external reference points.

A. Level of moral judgment

B. Situational factors

C. Locus of control

D. Field dependence

Ans: D

Cognitive Domain: Comprehension

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

True or False

1. The cognitive model of decision-making suggests that a decision-maker must have a clear goal and a comprehensive set of alternatives from which to choose, which are themselves weighted according to known criteria and preferences, and can choose the alternative that has the highest score.

Ans: F

Cognitive Domain: Comprehension

Answer Location: Rational Decision-Making

Difficulty Level: Medium

2. The activity orientation of the culture might influence when a situation is defined as a problem.

Ans: T

Cognitive Domain: Comprehension

Answer Location: Cultural Differences in the Optimization Model

Difficulty Level: Medium

3 The amount of information that a person considers before making a final decision is culture bound.

Ans: T

Cognitive Domain: Knowledge

Answer Location: Cultural Differences in the Optimization Model

Difficulty Level: Easy

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

4. Individual judgment boundaries exist because decision-makers often must deal with incomplete information about the problem, the decision criteria, and even their own preferences.

Ans: T

Cognitive Domain: Comprehension

Answer Location: Limits to Rationality

Difficulty Level: Medium

5. Heuristics are rules of thumb that people use to simplify decision-making.

Ans: T

Cognitive Domain: Comprehension

Answer Location: Heuristics

Difficulty Level: Medium

6. The three general heuristics that are used to simplify decision-making are availability, representativeness, and anchoring and adjustment.

Ans: T

Cognitive Domain: Comprehension

Answer Location: Heuristics

Difficulty Level: Medium

7. Heuristics are the extent to which instances or occurrences of an event are readily brought to mind.

Ans: F

Cognitive Domain: Comprehension

Answer Location: Availability

Difficulty Level: Medium

8. Consequential models focus on the outcomes or consequences of a decision to determine whether the decision is ethical.

Ans: T

Cognitive Domain: Comprehension

Answer Location: Consequential Models

Difficulty Level: Medium

9 Utilitarian principles hold that human beings have certain fundamental rights and that a sense of duty to uphold these rights is the basis of ethical decision-making rather than a concern for consequences.

Ans: F

Cognitive Domain: Comprehension

Answer Location: Deontological or Rule-Based Models

Difficulty Level: Medium

10. In cultural relativism, moral concepts are legitimate only to the extent that they reflect the habits and attitudes of a given culture.

Ans: T

Cognitive Domain: Comprehension

Answer Location: Cultural Relativism

Difficulty Level: Hard

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

11. Cognitive moral development is an approach to understanding ethical decision-making that focuses on the mental determination of right and wrong based on values and social judgments.

Ans: T

Cognitive Domain: Comprehension

Answer Location: Cognitive Moral Development

Difficulty Level: Medium

Completion (Fill in the Blank)

1. Moral concepts are legitimate only to the extent that they reflect the habits and attitudes of a given culture, according to ______.

Ans: cultural relativism

Cognitive Domain: Comprehension

Answer Location: Cultural Relativism

Difficulty Level: Medium

2. What are the four decision styles to cope with the psychological stress of making a decision in the conflict model of decision-making?

Ans: vigilance, complacency, defensive avoidance, and hypervigilance

Cognitive Domain: Comprehension

Answer Location: Cultural Constraints on Rationality

Difficulty Level: Medium

3. ______ are rules of thumb (cognitive tools) that people use to simplify decision-making.

Ans: Heuristics

Cognitive Domain: Comprehension

Answer Location: Heuristics

Difficulty Level: Medium

4. What are the three general heuristics that are used to simplify decision-making?

Ans: availability, representativeness, and anchoring and adjustment.

Cognitive Domain: Comprehension

Answer Location: Heuristics

Difficulty Level: Medium

5. The moral doctrine that we should always act to produce the greatest possible balance of good over harm for everyone affected by our decision is called ______.

Ans: utilitarianism

Cognitive Domain: Comprehension

Answer Location: Consequential Models

Difficulty Level: Medium

6. ______ espouse the view that, if followed, general moral rules will maximize the benefits to all and can be used as a shortcut to the complexity of evaluating the utility of each decision.

Ans: Rule utilitarians

Cognitive Domain: Comprehension

Answer Location: Consequential Models

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

Difficulty Level: Medium

7. The principles that hold human beings have certain fundamental rights and that a sense of duty to uphold these rights is ______.

Ans: deontological

Cognitive Domain: Comprehension

Answer Location: Deontological or Rule-Based Models

Difficulty Level: Medium

Essay

1. Describe rational decision-making and how it is limited by cognition and culture.

Ans. The rational model of decision-making suggests that a decision-maker must have a clear goal and a comprehensive set of alternatives from which to choose, which are themselves weighted according to known criteria and preferences, and can choose the alternative that has the highest score. Steps in the rational decision process are problem definition, Identify decision criteria, weight the criteria, generate the alternatives, evaluate the alternatives, and select the optimal solution.

Cognitive limits: Managers always have limited time or resources that put boundaries on rationality, and have come to recognize that the information that comes readily to hand is sometimes more useful than information that managers need to work hard to get.

Cultural limits: Rationality or being motivated by self-interest might be defined differently depending on how individuals from different cultures define themselves as interdependent with others or independent from others.

Cognitive Domain: Comprehension

Answer Location: Rational Decision-Making

Difficulty Level: Medium

2. Describe heuristics and the impact that culture has on them.

Ans: Heuristics are rules of thumb (cognitive tools) that people use to simplify decision-making. The three general heuristics that are used to simplify decision-making are availability, representativeness, and anchoring and adjustment. When we consider cultural variation and the role it plays in social cognition, we can anticipate systematic differences in how these heuristics are applied and the resulting biases.

Cognitive Domain: Comprehension

Answer Location: Heuristics

Difficulty Level: Medium

3. Discuss one of the moral philosophies for making ethical judgments. Provide an example. Ans: Consequential models focus on the outcomes or consequences of a decision to determine whether the decision is ethical.

Deontological (or rule-based) principles hold that human beings have certain fundamental rights and that a sense of duty to uphold these rights is the basis of ethical decision-making rather than a concern for consequences

In cultural relativism, moral concepts are legitimate only to the extent that they reflect the habits and attitudes of a given culture

Cognitive Domain: Comprehension

Answer Location: Moral Philosophies

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

Difficulty Level: Medium

4. Describe the stages of moral development proposed by Kohlberg What are the implications of culture for ethical decision-making?

Ans:

1. Stage one: Obedience and punishment, sticking to rules to avoid physical punishment, and obedience for its own sake.

2. Stage two: Instrumental purpose and exchange Following rules only when it is in one’s immediate interest. Right is an equal exchange, a fair deal.

3. Stage three: Interpersonal accord, conformity, mutual expectations. Stereotypical “good” behavior. Living up to what is expected by people close to you.

4. Stage four: Social accord and system maintenance. Fulfilling duties and obligations to which you have agreed. Upholding laws except in extreme cases where they conflict with fixed social duties. Contributing to the society, group.

5. Stage five: Social contract and individual rights. Being aware that people hold a variety of values; that rules are relative to the group. Upholding rules because they are the social contract. Upholding nonrelative values and rights regardless of majority opinion.

6. Stage six: Universal ethical principles. Following self-chosen ethical principles when laws violate these principles, act in accordance with principles.

Situational factors that might be proposed to influence the relationship between stage of moral development and ethical decision-making include such factors as the extent to which the environment specifies normative behavior (highly specified in collectivist cultures), whether the social referents in the situation are members of one’s in-group or out-group, and the extent to which demands are placed on the decision-maker by people in authority.

Cognitive Domain: Comprehension

Answer Location: Cognitive Moral Development

Instructor Resource Thomas/Peterson, Cross-Cultural Management, 4e SAGE Publishing, 2018

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