Exploring Management, 4th Edition Test Bank

Type:

Test Bank

Resource:

Exploring Management

Edition:

4th Edition

Author(s):

John R. Schermerhorn

Test File: mod01, Chapter 01: Managers and the Management Process

Multiple Choice

1. A person who supports and is responsible for the work of others is called a(n) a) leader. b) manager. c) employee. d) shareholder.

Answer: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

2. The three levels of management are a) first, second, and third. b) technical, conceptual, and human. c) directorial, upper, and bottom. d) top, middle, and first-line.

Answer: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

3. At First United Bank, division managers, regional managers, and branch managers would be known as a) first-line managers. b) middle managers. c) top managers. d) nonmanagerial workers.

Answer: b Bloom’s: Application Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

4. Susan is a manager who oversees the work of large departments or divisions consisting of several smaller teams at XYZ, Inc. Susan would be considered a a) CEO. b) first line manager. c) director. d) middle manager.

Answer: d Bloom’s: Application Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

5. Andy is a middle manager at ABC Industries, who would he report to? a) First line manager b) Vice president c) Chairman of the board d) President Answer: b Bloom’s: Application Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

6. Tom is responsible for a group of manufacturing assembly workers who report to him.

Tom is a __________ manager. a) top b) first-line c) middle d) senior Answer: b Bloom’s: Application Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

7. Top level managers focus on a) short term plans. b) long term success. c) middle managers. d) the board of directors.

Answer: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

8. A person who guides the performance of an organization as a whole or of one of its major parts is called a a) supervisor. b) first-line manager. c) top-level manager. d) middle manager.

Answer: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

9. The primary responsibility of the board of directors is to __________. a) tell the all managers what to do b) oversee the affairs of the organization c) make daily operational decisions d) do tactical planning Answer: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

10. __________ is the requirement to show performance results to a supervisor. a) Dependability b) Durability c) Delegation d) Accountability Answer: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Accountability is a cornerstone of managerial performance.

11. Managers have a(n) __________ on those who report to them. a) accountability b) dependency c) fondness d) satisfaction Answer: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Accountability is a cornerstone of managerial performance.

12. Which of the following is NOT one of the quality of work life (QWL) issues? a) Being respected and valued b) Fair pay c) Safe work conditions d) Health benefits Answer: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Effective managers help others achieve high performance and satisfaction.

13. Effective managers help others to achieve high performance and __________ in their work. a) salary b) profits c) rewards d) satisfaction Answer: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Effective managers help others achieve high performance and satisfaction.

14. Which of the following management issues is most associated with the concept of “quality of work life” or QWL?

a) Continuous improvement b) Job satisfaction c) Total quality management d) Customer service Answer: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Effective managers help others achieve high performance and satisfaction.

15. The upside down pyramid clearly shows that the job of top level managers is to support all EXCEPT a) middle managers. b) first line managers. c) operating workers. d) chairman of the board.

Answer: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify and apply the concepts of the chapter.

Section Reference: Chapter Review

16. The process of arousing enthusiasm and inspiring efforts to achieve goals is called a) leading. b) planning. c) organizing. d) controlling.

Answer: a Bloom’s: Knowledge Level: Easy Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

17. The process of assigning tasks, allocating resources, and coordinating the activities of individuals and groups is known as a) organizing. b) planning. c) leading. d) controlling.

Answer: a Bloom’s: Knowledge Level: Easy Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

18. When Julie is focused on measuring performance and correcting as necessary, she is focusing on which of these managerial functions? a) Control b) Leading c) Organizing d) Planning Answer: a Bloom’s: Application Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

19. When managers __________, they stay in contact with people as they work, gather and interpret information on performance results, and use this information to make adjustments. a) plan b) lead c) organize d) control Answer: d Bloom’s: Comprehension Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers enact informational, interpersonal, and decisional roles.

20. When Jose acts as a resource allocator or negotiator for his organization, he is acting in a(n) __________ role. a) entrepreneurial b) decisional c) interpersonal d) informational Answer: b Bloom’s: Application

Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers enact informational, interpersonal, and decisional roles.

21. Which of the following set of skills is most important at lower organizational levels? a) Planning b) Conceptual c) Technical d) Human Answer: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

22. The ability to work well in cooperation with other people refers to which skill? a) Conceptual b) Decisional c) Technical d) Human/emotional intelligence Answer: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills

23. Which of the following skills is the least necessary to senior managers? a) Technical b) Leading c) Conceptual d) Interpersonal Answer: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills 24. Of the following, which is NOT one of the six “must have” managerial skills? a) Self-management

b) Critical thinking c) Professionalism d) Expressiveness Answer: d Bloom’s: Comprehension Level: Difficult Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers can and should learn from experience.

25. The worldwide interdependence of resource flows, product markets, and business competition is called a) nation building. b) corporate dominance. c) globalization. d) strategic marketing.

Answer: c Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Globalization and job migration are changing the world of work.

26. Contracting for work that is performed by workers in other countries is called a) subcontracting. b) job migration. c) global marketing. d) global sourcing.

Answer: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Globalization and job migration are changing the world of work.

27. The oversight of corporate management by the board of directors is called a) organizational control. b) corporate governance. c) strategic planning. d) management interference.

Answer: b Bloom’s: Knowledge

Level: Easy Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Failures of ethics and corporate governance are troublesome.

28. __________ describes the composition of a workforce based on factors such as race, gender, age, religious affiliation, sexual orientation, and able-bodiedness. a) Discrimination b) Prejudice c) Intellectual capital d) Workforce diversity Answer: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Diversity and discrimination are continuing social priorities.

29. By 2030, more than __________ percent of the population of the United States will be aged 65+ years. a) 10 b) 20 c) 40 d) 75 Answer: b Bloom’s: Knowledge Level: Difficult Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Diversity and discrimination are continuing social priorities.

30. __________ is the display of negative irrational attitudes toward women or minorities. a) Discrimination b) Fairness c) Value system d) Prejudice Answer: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Diversity and discrimination are continuing social priorities.

31. The lack of women and minorities in senior management positions can be explained by __________. a) director make up b) the glass ceiling effect c) statistics d) historical data Answer: b Bloom’s: Comprehension Level: Medium Learning Objective 3: Identify and apply the concepts of the chapter.

Section Reference: Chapter Review

32. The collective brainpower or shared knowledge of a workforce is called __________. a) intellectual capital b) individual knowledge c) personality traits d) groupthink Answer: a Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Intellectual capital and self-management skills are essential for career success

33. Refusing to hire or promote a person in a minority group for reasons other than their qualifications refers to a) affirmative action. b) prejudice. c) discrimination. d) intellectual freedom.

Answer: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Intellectual capital and self-management skills are essential for career success

34. Intellectual capital = __________. a) Competency  Commitment

b) Personality  Effort c) Competency  Money d) Personality  Commitment Answer: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Intellectual capital and self-management skills are essential for career success

35. A shamrock organization operates with all of the following EXCEPT a) full time workers. b) part time employees. c) independent contractors. d) shareholders.

Answer: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Intellectual capital and self-management skills are essential for career success

True/False

36. In a typical business, vice president of marketing would be an example of a middle manager.

Answer: False Bloom’s: Comprehension Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

37. Generally in effective organizations, there is only one type and one level of manager.

Answer: False Page: See page 4 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

38. Interestingly, the levels of work and responsibility remain fairly constant in management, regardless of position in the organization.

Answer: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

39. In nonprofit organizations, the “board of directors” is often called the “board of trustees.”

Answer: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

40. In the traditional organization, accountability flows downward.

Answer: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Accountability is a cornerstone of managerial performance..

41. Your text author defines effective manager as someone who successfully helps others achieve both high performance and satisfaction in their work.

Answer: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Effective managers help others achieve high performance and satisfaction.

42. Research finds that today, the “best” managers are order-givers, who focus mainly on giving clear directions.

Answer: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Managers must meet multiple and changing expectations.

43. The upside-down pyramid view puts workers at the top of the organization.

Answer: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Managers must meet multiple and changing expectations.

44. While there are four functions of management, only the top managers are involved in the planning function.

Answer: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

45. It is in the organizing function that people are inspired and commitments are built to achieve the goals set in the planning function.

Answer: False Bloom’s: Comprehension Level: Difficult Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

46. Measuring performance and taking action to get the desired results are part of leading.

Answer: False Bloom’s: Knowledge Level: Easy Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

47. One way of looking at the work of managers is to consider their key “roles,” primarily the informational, technical, and decisional roles.

Answer: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify and apply the concepts of the chapter.

Section Reference: Chapter Review

48. To be effective, the management functions are always performed one at a time and step-by-step.

Answer: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers enact informational, interpersonal, and decisional roles.

49. Since much of what a manager needs to get done is beyond their capabilities alone, effective networking can often mean the difference between success and failure.

Answer: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers pursue action agendas and engage in networking.

50. Through networking, managers build and maintain positive relationships with other people, ideally those whose help might be useful someday.

Answer: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers pursue action agendas and engage in networking.

51. Upon entry into a career, one’s technical skills tend to be critical.

Answer: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

52. The two primary areas of skill in emotional intelligence are connection with self and connection with others.

Answer: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

53. Once you have completed your college degree, you will finally be free of the need to keep learning!

Answer: False Bloom’s: Knowledge Level: Easy Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers can and should learn from experience.

54. Global sourcing involves contracting for work to be performed in other countries.

Answer: True Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Globalization and job migration are changing the world of work.

55. If ABC International is involved in moving jobs from domestic to foreign locations, they are said to be engaging in reshoring.

Answer: False Bloom’s: Application Level: Medium Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Globalization and job migration are changing the world of work.

56. Ethics is a code of moral principles that sets standards of conduct for what is “good” and “right” as opposed to “bad” or “wrong.

Answer: True Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Failures of ethics and corporate governance are troublesome.

57. The U.S. Census Bureau predicts that by 2020 whites will constitute less than 33% of the population (versus 50% in 1960), and the combined populations of African Americans, Native Americans, Asians, and Hispanics will be the new majority.

Answer: False Bloom’s: Knowledge Level: Difficult Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Diversity and discrimination are continuing social priorities.

58. The first leaf in Handy’s shamrock organization is a core group of permanent, fulltime employees with critical skills, who follow standard career paths.

Answer: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Intellectual capital and self-management skills are essential for career success.

Fill-in-the-Blank

59. __________ are persons who directly supervise, support, and help activate work efforts of others to achieve performance goals.

Answer: Managers Bloom’s: Knowledge Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

60. __________ managers oversee the work of large departments or divisions consisting of several smaller teams.

Answer: Middle Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

61. The board of directors in a business organization is elected by the __________.

Answer: stockholders Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

62. __________ describes the requirement of one person to answer to a higher authority, for performance achieved in their area of responsibility.

Answer: Accountability Bloom’s: Knowledge Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Accountability is a cornerstone of managerial performance.

63. A manager is held accountable by __________ and is dependent upon his/her __________.

Answer: upper or top management; subordinates or employees Bloom’s: Knowledge Level: Difficult Learning Objective 1: Explain what it means to be a manager.

Section Reference: Accountability is a cornerstone of managerial performance

64. The ______ view of organizations puts customers at the top and being served by nonmanagerial workers who are supported by team leaders and higher-level managers.

Answer: upside-down pyramid Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Effective managers help others achieve high performance and satisfaction.

65. Today, managers are more often seen as __________ rather than as order-givers.

Answer: coordinators or coaches Bloom’s: Knowledge Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Managers must meet multiple and changing expectations.

66. The four key functions of management are __________, __________, __________, and __________.

Answer: planning; organizing; leading; controlling Bloom’s: Knowledge Level: Easy Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

67. Through __________, managers develop action priorities.

Answer: agenda setting Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers pursue action agendas and engage in networking.

68. Katz argues that managers need three essential skill sets to be successful, including __________, __________, and __________ skills.

Answer: technical, human; conceptual Bloom’s: Knowledge Level: Easy Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

69. One approach to evaluating the human skills of managers is to look at their level of __________.

Answer: emotional intelligence Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

70. Of the skills required in management, the one that typically grows in importance as one moves up in managerial responsibility is __________ skill.

Answer: conceptual Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills

71. __________ is the continuous learning from daily experiences.

Answer: Lifelong learning Bloom’s: Knowledge Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers can and should learn from experience.

72. __________ is a code of moral principles that sets standards of conduct for what is “good” and “right” as opposed to “bad” or “wrong.”

Answer: Ethics Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify important career issues in the workplace.

Section Reference: Globalization and job migration are changing the world of work.

73. __________ is the ability to understand oneself, exercise initiative, accept responsibility, and learn from experience.

Answer: Self-management Bloom’s: Knowledge Level: Medium Learning Objective 3: Identify important career issues in the workplace Section Reference: Intellectual capital and self-management skills are essential for career success.

Essay

74. Why is the job of managing so challenging?

Answer: Managers have to work through other people to accomplish work. In addition, the environment in which they work is changing, accountability is increasing, and the pace of work is hectic. Added to this, the work being done is critical to society.

Bloom’s: Evaluation Level: Medium Learning Objective 1: Explain what it means to be a manager.

Learning Objective 2: Describe what managers do and what skills they use.

Section Reference 1: Organizations have different types and levels of managers.

Section Reference 2: Accountability is a cornerstone of managerial performance.

Section Reference 3: Managerial work is often intense and demanding.

Section Reference 4: Managers can and should learn from experience.

75. Name the three levels of management and define their primary responsibilities.

Answer: The levels of management are top, middle and first-line. Top level managers are responsible for the overall performance of the organization, overseeing middle managers and long term strategic planning. Middle managers report to the top level managers and are responsible for overseeing the first-line managers and short term strategic planning.

First-line managers oversee non-managerial employees and are responsible for day to day tactical operations.

Bloom’s: Knowledge, Synthesis Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

76. Why might emotional intelligence be so important in a managerial position?

Answer: Since managers work through other people, and since actions speak louder than words, effective managers must be touch with and in control of themselves first, in order to set the example for their followers. In addition, managers need to be able to reach out to where their followers are, understand where they are, and be able to lead them to where they would like the followers to be. All of this is based on the ability of the manager to understand self and connect with others, the essence of emotional intelligence.

Bloom’s: Evaluation, Synthesis Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

77. Name the four steps in the management process and define each of them.

Answer: The four steps in the management process are planning, organizing, leading and controlling. Planning involves setting performance objectives and the strategies for meeting them. Organizing involves arranging tasks and assigning the responsibilities and other resources required to complete them. Leading includes inspiring and motivating employees who must do the work. Controlling involves measuring performance and taking necessary corrective actions.

Bloom’s: Knowledge, Synthesis Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

78. Name the three types of skills that managers need and define each of them.

Answer: The skills that managers need are conceptual, human and technical. Conceptual skills include analytical decision making and integrative problem solving. Human skills are interpersonal skills and include the ability to communicate and work well with others.

Technical skills are the professional skills necessary to effectively and efficiently perform a task.

Bloom’s: Synthesis Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

79. Describe how managers actually get things done utilizing Mintzberg’s three sets of roles that he believed all good managers enact successfully. Provide an example of each.

Answer: These are the interpersonal, informational, and decisional roles. A manager’s informational roles focus on the giving, receiving, and analyzing of information. The interpersonal roles reflect interactions with people inside and outside the work unit. The decisional roles involve using information to make decisions to solve problems or address opportunities. It is through performing all of these roles, so to speak, that managers fulfill their planning, organizing, leading, and controlling responsibilities. Student examples will vary.

Bloom’s: Synthesis

Level: Medium Learning Objective 2: Describe what managers do and what skills they use.

Section Reference: Managers enact informational, interpersonal, and decisional roles.

80. Describe Charles Handy’s shamrock organization. Provide an example of each leaf.

Answer: Each leaf in the shamrock organization represents a different group of workers.

The first leaf is a core group of permanent, full-time employees with critical skills, who follow standard career paths. The second leaf consists of workers hired as freelancers and independent contractors. They provide organizations with specialized skills and talents for specific projects and then change employers when projects are completed. An increasing number of jobs in the new economy fall into this category. Some call this a time of giganomics, where even well-trained professionals make their livings moving from one “gig” to the next, instead of holding a traditional full-time job. The third leaf is a group of temporary part-timers. Their hours of work increase or decrease as the needs of the business rise or fall. They often work without benefits and are the first to lose their jobs when an employer runs into economic difficulties Bloom’s: Synthesis Level: Medium Learning Objective 3: Identify important career issues in the workplace Section Reference: Intellectual capital and self-management skills are essential for career success.

File: mod02, Chapter 2: Management Learning

Multiple Choice

1. Which of the following management styles came first? a) Classical approach b) Humanistic perspective c) Learning organization d) Theory Y Ans: a Blooms: Knowledge Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

2. Who is the author of the Principles of Scientific Management? a) Maslow b) McGregor c) Kotler d) Taylor Ans: b Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

3. Which of these is NOT included as a part of classical approaches to management? a) Maslow’s hierarchy of human needs b) Fayol’s administrative principles c) Weber’s bureaucratic organization d) Taylor’s principles of scientific management Ans: c Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

4. Which management emphasized careful selection and training of workers and supervisory support? a) Scientific b) Behavioral c) Contingency d) Autocratic Ans: a Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

5. Carefully designing jobs with efficient work methods is necessary to __________ management. a) scientific b) behavioral c) contingency d) laissez-faire Ans: a Blooms: Comprehension Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

6. Which of these is one of the principles of scientific management? a) Understanding human needs b) Flexible time off c) Training and motivating workers d) Cross functional teams Ans: c Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

7. As president of Paper Products, Inc., Jim wants his manufacturing manager to clearly define the steps in the process, train the workers to efficiently do their jobs, and financially reward them on the basis of performance. Jim is practicing __________. a) contingency thinking b) scientific management c) Theory Y’s beliefs d) learning organization principles Ans: b Blooms: Application Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

8. Two key elements of Weber’s bureaucracy were fairness and a) informality. b) history. c) participation. d) efficiency.

Ans: d Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

9. Based on logic, order, and legitimate authority, a rational and efficient form of organization according to Max Weber, is a(n) a) learning organization. b) adhocracy. c) government agency. d) bureaucracy.

Ans: d Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

10. If Weber were able to see today’s bureaucracies in action, he would most likely be a) pleased. b) disappointed. c) indifferent. d) optimistic.

Ans: b Blooms: Knowledge Level: Difficult Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

11. Weber’s bureaucracy includes all but which of these? a) Division of labor b) Formal rules and procedures c) Employees’ personal needs d) Careers based on merit Ans: c Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

12. Millennials are individuals born between what years? a) 1950-1960 b) 1982-1996 c) 1940-1949 d) 1961-1972 Ans: b Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

13. The writings of Fayol are the basis for our modern understanding of: a) the three managerial skill sets. b) the four functions of management. c) the key managerial roles.

d) the four P’s of marketing. e) scientific management.

Ans: b Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Fayol’s administrative principles describe managerial duties and practices.

14. The five duties of management, according to Fayol, are foresight, organization, command, coordination, and __________. a. insight b. analysis c. accountability d. control Ans: d Blooms: Knowledge Level: Difficult Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Fayol’s administrative principles describe managerial duties and practices.

15. Which management researcher is considered as a prophet of today’s management style? a) Taylor b) Weber c) Follett d) Maslow Ans: c Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

16. Bert and John Jacobs, co-founders of the company Life is Good, suggests that the message of the “Life is Good” brand is to: a) strive for perfectionism. b) decide to be happy today. c) be always on the lookout for that special person. d) strive for a big promotion.

Ans: b

Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

17. The writings of Mary Parker Follett have influenced all but which of the following “modern” management ideas? a) Profit above all b) Profit sharing c) Gain-sharing plans d) Employee ownership Ans: a Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

18. Based on the findings of the Hawthorne studies, as a manager you know that: a) giving special attention to your employees will likely increase their performance. b) increasing the lighting of employees’ work area will increase their performance. c) improving the working conditions for your workers will increase their performance. d) workers will not sacrifice pay just to keep coworkers happy. e) workers react consistently to work conditions and wages.

Ans: a Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

19. One of the surprise findings in the Hawthorne studies was that a) productivity increased with changes in lighting. b) productivity was influenced by group behavior. c) an increase in wages always resulted in an increase in productivity. d) productivity increased with better –defined tasks.

Ans: b Blooms: Knowledge Level: Medium

Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

20. The term “Hawthorne Effect” was used to explain some of the important findings of the Hawthorne studies. What does the term mean? a) Productivity is determined by efficiency. b) Physical conditions of work are more important than social relationships. c) When jobs are designed scientifically, performance improves. d) People given special attention tend to perform as expected.

Ans: d Blooms: Comprehension Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

21. All are true about The Hawthorne studies EXCEPT: a) were poorly designed from a research perspective. b) provide weak empirical support for their conclusions. c) are criticized for generalizing their findings. d) represent a shift in research attention from human to technical concerns.

Ans: d Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

22. The __________is the tendency of persons singled out for special attention to perform as expected. a) management of participative measures b) management of scientific alternatives c) Hawthorne effect d) theory of Y management Ans: c Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

23. Which of these describes a physiological or psychological deficiency that a person wants to satisfy? a) Wish b) Expense c) Need d) Hawthorne effect Ans: c Blooms: Knowledge Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

24. Which of these principles, according to Maslow, states that people act to satisfy unfulfilled needs? a) Deficit b) Progression c) Regression d) Care Ans: a Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

25. According to Maslow, which of the following is in the highest “need” category? a) Getting a date for the weekend b) Having a job you love, which also allows you to feel fulfilled c) Having enough money to pay rent d) Being accepted into a fraternity or sorority on campus Ans: b Blooms: Analysis Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

26. Who is credited for originally developing the hierarchy of human needs theory? a) Max Weber b) Frederick Taylor c) Abraham Maslow d) Douglas McGregor Ans: c Blooms: Knowledge Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

27. From Maslow’s hierarchy of needs theory, which of the following needs is considered to be the most basic? a) Safety b) Social c) Self-actualization d) Physiological Ans: d Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

28. From the Maslow’s hierarchy of needs theory, which of the following needs occupies the highest pedestal in the hierarchy? a) Social b) Physiological c) Self-actualization d) Esteem Ans: c Blooms: Knowledge Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

29. According to Maslow’s progression principle, a) all needs can be satisfied by everybody. b) needs can be satisfied simultaneously. c) once activated, needs are not important in human behavior. d) a need at any level becomes activated only after the next-lower-level need is satisfied.

Ans: d Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

30. At which level of needs do Maslow’s progression principle and deficit principle cease to exist? a) Physiological b) Self-actualization c) Safety d) Esteem Ans: b Blooms: Knowledge Level: Difficult Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

31. Theory X and Theory Y were developed by __________. a) Max Weber b) Frederick Taylor c) Chris Argyris d) Douglas McGregor Ans: d Blooms: Knowledge Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

32. Which of the following is NOT a part of Theory X? a) Employees like responsibility b) Workers are lazy c) Workers prefer to follow d) Employees like to work Ans: a Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

33. As a high school teacher, Julie has always felt that her students are lazy, don’t really want to be in school, and are very irresponsible in their studies. Julie holds a __________ assumption. a) Theory Y b) Theory B c) Theory A d) Theory X Ans: d Blooms: Knowledge Level: Difficult Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

34. Theory __________ assumes people are willing to work, accept responsibility, and are selfdirected. a) Y b) Z c) X d) A Ans: a Blooms: Knowledge Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

35. Theory Y would suggest all of these EXCEPT a) employees resist change. b) employees like work. c) employees are capable of self-control. d) employees want responsibility.

Ans: a Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

36. According to Chris Argyris, high absenteeism and poor morale in an organization is likely due to a) poorly designed tasks interfering with efficiency. b) a poorly defined hierarchy of authority. c) a mismatch between management practices and the adult nature of their workforce. d) a lack of control and enforcement.

Ans: c Blooms: Knowledge Level: Difficult Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Argyris suggests that workers treated as adults will be more productive.

37. Chris Argyris’ beliefs, as presented in his book Personality and Organization, are in disagreement with __________. a) Theory Y b) the Hawthorne studies c) the Maslow’s hierarchy of needs theory d) the management practices found in traditional organizations Ans: d Blooms: Knowledge Level: Difficult Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Argyris suggests that workers treated as adults will be more productive.

38. Management science and __________ apply mathematical techniques to solve management problems. a) behavior analysis b) contingency theory c) operations research d) participative management Ans: c Blooms: Knowledge Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Managers use quantitative analysis and tools to solve complex problems.

39. Which of these explains the study of how organizations produce goods and services? a) Marketing operations b) Operations management c) Contingency practice d) Learning practice Ans: b Blooms: Knowledge Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Managers use quantitative analysis and tools to solve complex problems.

40. Which of these transforms resource inputs from the environment into product outputs? a) Top management b) Closed system c) Open system d) Contingency plan Ans: c Blooms: Knowledge Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Organizations are open systems that interact with their environments.

41. Modern management thinking would suggest that: a) a “best” way to manage does exist. b) the discovery of a workable process can be transferred to all other organizations. c) once a process is perfected, it will not have to be changed. d) the best answer to what works “depends” on the situation.

e) people are usually on the same page and they can be managed similarly.

Ans: d Blooms: Knowledge Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

42. Matching management practices with different situations is called __________. a) classical management b) situational analysis c) contingency thinking d) administrative management Ans: c Blooms: Knowledge Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

43. If your roommate asks you to identify the best management style, what would you say? a) Classical b) Participative c) Administrative d) It depends on the situation Ans: d Blooms: Knowledge Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

44. Managing with an organization-wide commitment to continuous improvement, product quality, and customer needs is called: a) a learning organization. b) operations management. c) management by objectives. d) total quality management.

Ans: d Blooms: Knowledge

Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Quality management focuses attention on continuous improvement.

45. __________ involves always searching for new ways to improve work quality and performance. a) Operations management b) Continuous improvement c) Quantitative analysis d) Operations research Ans: b Blooms: Knowledge Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Quality management focuses attention on continuous improvement.

True/False

46. Taylor’s scientific management sought efficiency in job performance.

Ans: True Blooms: Knowledge Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

47. The only goal of scientific management was to increase worker efficiency for the benefit of the company.

Ans: False Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

48. The most formidable aspect of scientific management is that it emphasizes creativity and risk taking.

Ans: False Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

49. Workers, in an ideal bureaucracy, are selected and promoted on ability and performance.

Ans: True Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

50. Weber is credited as being the first to acknowledge and advocate that bureaucracies are inefficient forms of organization that should be avoided.

Ans: False Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

51. The work by Henri Fayol can help you understand the functions that you must perform as the manager of a student organization.

Ans: True Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Fayol’s administrative principles describe managerial duties and practices.

52. Fayol’s management rule of coordination provides and mobilizes resources to implement a plan.

Ans: False Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Fayol’s administrative principles describe managerial duties and practices.

53. Follett argued that organizations are like communities, where managers and employees should work together without a spirit of domination.

Ans: True Blooms: Knowledge Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

54. Follett would say that the successful 21st-century executive must be an inspiring leader who attracts talented people and motivates them in a setting where everyone can do his or her best work.

Ans: True Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

55. The Hawthorne studies established a clear link between working conditions and worker performance.

Ans: False Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

56. The reason that worker “human needs” are important to managers is that these needs can cause tensions that may influence work attitudes and behaviors.

Ans: True

Blooms: Knowledge Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

57. Maslow believed that there was no order in which human needs were fulfilled.

Ans: False Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

58. Having a Theory X view of employees can actually encourage Theory X behaviors in your employees.

Ans: True Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

59. The essence of Argyris’ work is that management practices should fit the capabilities of the employees they are used to.

Ans: True Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Argyris suggests that workers treated as adults will be more productive.

60. Another way to look at the work by Chris Argyris is that undesirable employee behaviors may be as much a reflection of a poor management system as it is a matter of poor employees.

Ans: True Blooms: Knowledge

Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Argyris suggests that workers treated as adults will be more productive.

61. Operations management is the study of how organizations produce goods and services.

Ans: True Blooms: Knowledge Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Managers use quantitative analysis and tools to solve complex problems.

62. Modern management accepts the fact that all techniques are contingent upon the unique situation faced by each manager. In other words, there is no one “best” way.

Ans: True Blooms: Knowledge Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

63. Organizational learning is a never ending process of continuous improvement.

Ans: True Blooms: Knowledge Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

64. Author and researcher Malcolm Gladwell, in the book Outliers, successfully argues that great leaders are born, not made.

Ans: False Blooms: Knowledge Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Quality management focuses attention on continuous improvement.

Fill-in-the-Blank

65. Scientific management is associated with the management scholar __________.

Ans: Frederick Taylor Blooms: Knowledge Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

66. ________ is the science of reducing a job or task to its basic physical motions.

Ans: Motion study Blooms: Knowledge Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

67. The __________ is an organizational form known for its clear division of labor, structure, hierarchy of authority, and formalized rules and procedures.

Ans: bureaucracy Blooms: Knowledge Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

68. __________ is considered a prophet of management and one of the most important American women in the fields of civics and sociology.

Ans: Mary Parker Follett Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

69. Following the scientific management era, management thinking moved to include a(n) __________ perspective.

Ans: human resources or behavioral management Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

70. The __________ studies at the Western Electric Company in Chicago demonstrated the influence of manager treatment of employees on employee performance.

Ans: Hawthorne Blooms: Knowledge Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

71. The highest order of Maslow’s hierarchy of needs is __________.

Ans: self-actualization Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

72. McGregor’s work focuses on opposing views of human nature, a positive view known as __________ and a negative view known as __________.

Ans: Theory Y, Theory X (in this order!)

Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

73. __________ is the systemic use and analysis of data to solve problems and make informed decisions.

Ans: Analytics Blooms: Knowledge Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Managers use quantitative analysis and tools to solve complex problems.

74. The study of how organizations produce goods and services is called __________.

Ans: operations management Blooms: Knowledge Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Managers use quantitative analysis and tools to solve complex problems.

75. The belief that there is no one best way to manage was called __________.

Ans: contingency thinking Blooms: Knowledge Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

76. Managing with an organization-wide commitment to continuous improvement, product quality, and customer needs is called __________.

Ans: total quality management Blooms: Knowledge Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Quality management focuses attention on continuous improvement.

77. A(n) __________ consistently achieves excellence while creating a high-quality work environment.

Ans: high-performance organization

Blooms: Knowledge Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Evidence-based management seeks hard facts about what really works.

Essay

78. Compare the scientific management and the behavioral management approaches. Which is best?

Ans: Scientific management focuses on the interaction of workers and work processes to produce more efficient outcomes, while behavioral management focuses on the experience of workers and the response of workers to various management systems. Neither is “best.” Both perspectives are needed to function effectively in today’s complex environment.

Blooms: Analysis Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

Section Reference: Follett viewed organizations as communities of cooperative action.

79. Why is it necessary for today’s organizations to embrace contingency thinking?

Ans: With the dynamic, ever changing environment of complex relationships between organizations, their internal members, and the external stakeholders, contingency tells us there is no one best structure or set of processes.

Blooms: Evaluation Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

80. What were the Hawthorne studies about? Discuss their purpose, the process, and the results.

Ans: The Hawthorne studies started in 1924 at the Hawthorne Works, a Western Electric plant in Chicago, Illinois. The purpose of the Studies was to determine how economic incentives and physical conditions affected the productivity of workers.

The process was one of isolating six employees, changing their economic incentives and physical environment and measuring the effect that these changes had on their productivity.

The results were surprising in that the changes had little or no affect on the isolated worker’s productivity. However, it was determined that productivity was influenced by psychological factors such as the group responding to the attention that they were getting, the expectations placed on them and to peer pressure from group members. The studies were terminated in 1932.

Blooms: Evaluation Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

81. What is Maslow’s hierarchy of needs? Define each of them beginning with the most basic.

Ans: Maslow’s hierarchy of needs beginning with the most basic are Physiological –The need for food and shelter; Safety –The need for security, protection and stability; Social – economic – The need for love, affection, and a sense of belonging in one’s relationship with others; Esteem – The need for recognition, respect, prestige, and self-esteem; Self-actualization –The need for self-fulfillment and to use one’s abilities to the fullest and most creative extent.

Blooms: Knowledge Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

82. Discuss and compare McGregor’s Theory X and Theory Y. Ans: McGregor, in an attempt to convince managers to pay more attention to the social and selfactualization needs of employees, postulated that there were two opposing views of human nature; Theory X and Theory Y. Theory X assumes that people dislike work, lack ambition, are irresponsible and prefer to be led. Theory Y assumes that people want to work, accept responsibility, are self-directed and are creative. McGregor further believed that these two assumptions were self-fulfilling prophecies in the sense that people will behave as you expect them to do.

Theory X managers were thought to have a “command and control” style. Theory Y managers were thought to have a more participative style.

Blooms: Evaluation Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

Test File: mod03, Chapter 03: Ethics and Social Responsibility

Multiple Choice

1. Joanne follows a set of standards for what is right and wrong in her conduct. These set of standards refer to a) laws. b) policies. c) ethics. d) practices.

Ans: c Bloom’s: Application Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: How do ethics and ethical behavior play out in the workplace?

2. Which of these is “right” or “good” in the context of a governing moral code? a) Legal behavior b) Individual behavior c) Management behavior d) Ethical behavior Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: How do ethics and ethical behavior play out in the workplace?

3. Broad beliefs about what is appropriate behavior are called __________. a) values b) judgment c) ethics d) laws Ans: a Bloom’s: Knowledge Level: Easy

Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

4. Which of these describes personal beliefs such as honesty, caring, and integrity? a) Beliefs b) Values c) Ethics d) Ideas Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

5. Susan has certain preferences about desired end states. These preferences are referred to as ____ values. a) ethical b) instrumental c) terminal d) righteous Ans: c Bloom’s: Application Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

6. __________ values are preferences regarding the means to a desired end. a) Ethical b) Instrumental c) Terminal d) Righteous Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

7. Amanda, a high school student, wants to be president of a company someday, but she also wants to raise a family and enjoy recreational activities. Amanda is focused on which of these? a) Terminal values b) Future values c) Instrumental values d) Long term values Ans: a Bloom’s: Application Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

8. Cody is graduating from college and is looking for a position as a first line production manager and would like to become the president someday. He knows what he wants to do in the future, but he also wants to work for a firm with a culture that matches his personal values. This is an example of __________ values. a) terminal b) fixed c) instrumental d) utilitarian Ans: c Bloom’s: Application Level: Difficult Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

9. As a student, if you believe that good grades are obtained through good study habits or luck in getting the “right” test questions or sitting beside “smart” friends, you prescribe to which of these? a) Good ethics b) Instrumental values c) Moral-rights d) Terminal values Ans: b Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

10. The __________ view considers ethical behavior to be that which delivers the greatest good to the greatest number of people. a) best b) utilitarian c) justice d) moral rights Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

11. Jermaine argues for increasing the dues for their student organization in order to keep the club solvent, even though some of the members might not be able to afford the increase. He is taking the __________ approach to moral reasoning. a) moral-rights b) justice c) utilitarian d) individualistic Ans: c Bloom’s: Application Level: Difficult Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

12. The belief that ethical behavior advances long term self-interests is called the __________ view. a) moral rights b) justice c) individualism d) utilitarian Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

13. Susan is a business unit manager at Garden Tools, Inc. She has inadvertently come across a competitor’s business plan. Susan’s first thought is to keep it and use it against the competitor.

However, she returns it without looking at it because she feels that long term it is not in her best interest. Susan can be described as having which of these views of moral reasoning? a) Moral rights b) Religious c) Utilitarian d) Individualism Ans: d Bloom’s: Application Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

14. The belief that ethical behavior treats all people impartially and fairly is called the __________ view. a) individual b) fair c) justice d) moral rights Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

15. Pet Products, Inc. has been hit hard by the latest recession. The president has ordered a 10% reduction in the workforce across the board. This decision might be justified as ethical using the __________ approach to moral reasoning. a) utilitarian b) individual c) moral rights d) justice Ans: a Bloom’s: Application

Level: Difficult Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

16. Lewis is a department manager. Some of those who report to him are his after work buddies.

Because of this, Lewis often lets his buddies violate department policies while insisting that others follow them. John is guilty of not adhering to the __________ view of moral reasoning. a) moral rights b) protective c) utilitarian d) justice Ans: d Bloom’s: Application Level: Difficult Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

17. Which justice focuses on the fair application of policies and rules to all? a) Interactional b) Procedural c) Fair d) Distributive Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

18. __________ justice focuses on treating people fairly regardless of personal characteristics. a) Instrumental b) Procedural c) Interactional d) Distributive Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

19. __________ justice is the degree to which others are treated with respect. a) Utilitarian b) Distributive c) Interactional d) Moral rights Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

20. The belief that ethical behavior respects and protects fundamental rights is called the __________ view. a) moral rights b) protective c) utilitarian d) justice Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

21. Article __________ of the Universal Declaration of Human Rights, United Nations, states that everyone has the right to freedom of thought, conscience, and religion. a) 1 b) 18 c) 23 d) 26 Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

22. Article __________ of the Universal Declaration of Human Rights, United Nations, states that everyone has the right to education. a) 1 b) 18 c) 23 d) 26 Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

23. Which of these suggests that there is no one right way to behave and that ethics are dependent on the local culture? a) Procedural rights b) Universalism c) Ethical imperialism d) Cultural relativism Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

24. Reena has always believed that there is no one right way to behave and that ethics are dependent on the local culture. Reena can be said to follow which of these ethical positions? a) Cultural relativism b) Universalism c) Ethical imperialism d) Procedural rights Ans: a Bloom’s: Application Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

25. The phrase “when in Rome, do as the Romans do” reflects which of the following ethical positions? a) A moral rights view b) Moral absolutism c) Distributive justice d) Cultural relativism Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

26. Which of these describes an attempt by one culture to impose its values on another culture? a) Moral rights b) Moral absolutism c) Ethical imperialism d) Cultural relativism Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

27. Rajesh has recently migrated from India to Germany. He argues that bribery is an acceptable practice for getting things done in his country and it works. Hence, he argues that such cultural values must be adopted by all countries to get things done. Rajesh’s beliefs suggest which of these ethical practices? a) Moral rights b) Moral absolutism c) Ethical imperialism d) Cultural relativism Ans: c Bloom’s: Analysis Level: Difficult Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

28. If you are going on an international trip and your parents tell you “Don’t do anything that you would not do at home,” you are being told to practice ___________. a) moral rights b) moral absolutism c) ethical imperialism d) cultural relativism Ans: b Bloom’s: Knowledge Level: Difficult Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

29. Common situations for unethical behavior at work include all of the following EXCEPT a) discrimination. b) sexual harassment. c) favoritism. d) conflicts of interest. .

Ans: c Bloom’s: Knowledge Level: Difficult Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

30. A(n) __________ is a situation that although offering potential benefit or gain may also be unethical. a) ethical dilemma b) imperial relativism c) moral rights d) interactional justice Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

31. Abby’s manager has asked her to do something that strongly violates her personal values.

Abby can be described as facing which of these? a) Impossible situation b) Immoral judgment c) Instant crisis d) Ethical dilemma Ans: d Bloom’s: Application Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

32. While not a justification for the responsibility of any of the involved parties, your author argues that a primary source of pressure leading to ethical dilemmas comes from a) society. b) bosses. c) employees. d) customers.

Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

33. The __________ ethical position is most closely associated with ethical imperialism. a) social universalist b) moral absolutism c) moral right d) distributive justice Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

34. Which of the following is an example of the unethical behavior of discrimination at work? a) Denying people a promotion because of their race or religion.

b) Taking bribes in return for making decisions favorable to another person. c) Giving someone privileged information regarding the activities of a customer. d) Using official stationery to make requests from community organizations.

Ans: a Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

35. “No one will ever know about it” is an example of __________ unethical behavior. a) eliminating b) dismissing c) acknowledging d) rationalizing Ans: d Bloom’s: Analysis Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: People have tendencies to rationalize unethical behaviors.

36. Well-thought out personal rules and strategies for ethical behavior refers to which of these? a) Ethical dilemmas b) Ethical decisions c) Ethical frameworks d) Unethical behaviors Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal Character and moral development influence ethical decision making.

37. In Kohlberg’s Three Levels of Moral Development, the preconventional stage is based on which of these behaviors? a) Social-centered b) Self-centered

c) Non-centered d) Principle Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal Character and moral development influence ethical decision making.

38. The conventional stage in Kohlberg’s Three Levels of Moral Development is based on __________ behavior. a) social-centered b) self-centered c) non-centered d) principle Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal Character and moral development influence ethical decision making.

39. The postconventional stage in Kohlberg’s Three Levels of Moral Development is based on __________ behavior. a) social-centered b) self-centered c) non-centered d) principle-centered Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal Character and moral development influence ethical decision making.

40. Someone in the __________ stage of moral development is likely to make decisions based on social norms, meeting the expectations of others, and living up to agreed-upon obligations. a) preconventional b) conventional c) postconventional d) pastconventional Ans: b Bloom’s: Comprehension Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal Character and moral development influence ethical decision making.

41. What is the second step in dealing with ethical dilemmas? a) Decide which option to follow b) Recognize the ethical dilemma c) Get the facts d) Identify your options Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Training in ethical decision making can improve ethical conduct.

42. Someone who exposes unethical behavior on the part of others, often senior management, is a __________. a) tattle tail b) whistleblower c) disloyal person d) bad employee Ans: b Bloom’s: Comprehension Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Protection of whistleblowers can encourage ethical conduct.

43. Sherron Watkins exposed corporate financial scandal at Enron. Sherron is described as a __________. a) government accountant b) whistleblower c) person of poor ethical judgment d) bad employee Ans: b Bloom’s: Application Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Protection of whistleblowers can encourage ethical conduct.

44. Of the following statements about whistleblowers, which is true? a) Unfortunately, whistleblowers are never successful in getting changes made. b) Whistleblowers are subjected to harassment, but fortunately, the law always protects them. c) Whistleblowers are eager to act. d) Whistleblowers careers may suffer.

Ans: d Bloom’s: Comprehension Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Protection of whistleblowers can encourage ethical conduct.

45. A(n) __________ manager fails to consider ethics. a) moral b) amoral c) immoral d) Theory X Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Managers as positive models can inspire ethical conduct.

46. As a manager, Jason chooses to behave unethically. Jason can be described as a(n) ____ manager.

a) moral b) amoral c) immoral d) theory x Ans: c Bloom’s: Application Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Managers as positive models can inspire ethical conduct.

47. John is a middle manager. He chooses to stay out of ethical issues because “they are too messy.” John is a(n) __________ manager. a) moral b) amoral c) immoral d) theory X Ans: c Bloom’s: Application Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Managers as positive models can inspire ethical conduct.

48. Many companies are developing a formal statement of values and standards called a __________. a) statement of values b) corporate beliefs statement c) corporate values statement d) code of ethics Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Formal codes of ethics set standards for ethical conduct.

49. The group of all people and institutions directly impacted by a firm are called __________. a) stock holders

b) general partners c) interested parties d) stakeholders Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: What should we know about the social responsibilities of organizations.

50. Which of these refers to the obligation of an organization to its stakeholders as well as its own interests? a) Altruism b) Corporate social responsibility c) Philanthropy d) Corporate interest Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social responsibility is an organization’s obligation to best serve society.

51. Your roommate argues that businesses should focus on the pursuit of profits. Your roommate is prescribing to which view of corporate social responsibility? a) Socioeconomic b) Legal c) Classical d) Entrepreneurial Ans: c Bloom’s: Comprehension Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Scholars argue cases for and against corporate social responsibility.

52. The __________ view of corporate social responsibility is that business should focus on contributions to society, not just making profits.

a) socioeconomic b) legal c) classical d) entrepreneurial Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Scholars argue cases for and against corporate social responsibility.

53. __________ responsibility exists when an organization earns a profit through the provision of goods and services desired by customers. a) Economic b) Legal c) Ethical d) Discretionary Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social responsibility audits measure the social performance of organizations.

54. The highest level of social performance comes through the satisfaction of _______ responsibility. a) economic b) legal c) ethical d) discretionary Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social responsibility audits measure the social performance of organizations.

55. __________ is making use of natural resources to meet today’s needs while also preserving and protecting the environment for use by future generations. a) Abundant consumer b) Protectionist business c) Sustainable development d) Environmental capital Ans: c Bloom’s: Knowledge Level: Difficult Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Sustainability is an important social responsibility goal.

56. Risk taking by entrepreneurs striving to solve pressing social issues is called __________. a) socioeconomic dynamics b) social entrepreneurship c) corporate governance d) entrepreneurial spirit Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social business and social entrepreneurs point the way in social responsibility.

True/False

57. In deciding on what behavior is ethical, fortunately, one can simply follow the “letter of the law.”

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: How do ethics and ethical behavior play out in the workplace?

58. Values tend to be quite flexible within individuals, so we can train employees to hold certain values.

Ans: False Bloom’s: Knowledge Level: Difficult Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

59. Verbal, sexual, and racial harassment; misuse of company property; and giving preferential treatment represent the most common unethical acts by managers and supervisors.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

60. The individualism view of ethics is somewhat the reverse of the utilitarian view.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

61. The degree to which others are treated with dignity and respect refers to commutative justice.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

62. Article 19 of the Universal Declaration of Human Rights, United Nations, states that everyone has the right to freedom of opinion and expression.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

63. Ethical dilemmas often arise out of the conflicting desires of managers, employees, and customers.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

64. One of the problems in stopping unethical behavior is that those who commit unethical acts often justify their actions in such a way as to make the actions seem acceptable to them.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: People have tendencies to rationalize unethical behaviors.

65. According to one survey, almost 25% of U.S. workers admitted to committing unethically questionable acts within the past year.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal character and moral development influence ethical decision making.

66. The main reason for the actions of whistleblowers is the praise and recognition that comes from the companies that they help in uncovering problems.

Ans: False Bloom’s: Knowledge Level: Medium

Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Protection of whistleblowers can encourage ethical conduct.

67. The reason that managers have such a large share of the responsibility for ethical behavior is due to their power and ability to set the tone for the organization.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Managers as positive role models can inspire ethical conduct.

68. To increase the power and visibility of ethics codes, some companies have new employees sign an agreement to follow the code as a condition of employment.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Formal codes of ethics set standards for ethical conduct.

69. Moral managers consider the ethical implications of their actions as a part of their normal approach to work.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Managers as positive role models can inspire ethical conduct.

70. According to research, ethics codes can guarantee good conduct.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Formal codes of ethics set standards for ethical conduct.

71. The terms stakeholders and stockholders refer to the same group and are interchangeable.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: What should we know about eh social responsibilities of organizations.

72. The role of business is solely to maximize profits and shareholder value represents the classical view of corporate responsibility.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Scholars argue cases for and against corporate social responsibility.

73. The highest level of social performance comes through the satisfaction of economic responsibility.

Ans: False Bloom’s: Knowledge Level: Difficult Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social responsibility audits measure the social performance of organizations.

Fill-in-the-Blank

74. __________ is “right” or “good” in the context of a governing moral code.

Ans: Ethical behavior Bloom’s: Knowledge

Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: How do ethics and ethical behavior play out in the workplace?

75. __________ is defined as the code of moral principles that sets standards of conduct.

Ans: Ethics Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: How do ethics and ethical behavior play out in the workplace?

76. The underlying beliefs and attitudes that help to determine individual behavior are known as __________.

Ans: values Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

77. The __________ view of moral reasoning considers whether people are treated impartially and fairly according to some applicable standard.

Ans: justice Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

78. __________ justice focuses on treating people the same regardless of personal characteristics.

Ans: Distributive Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

79. __________ justice focuses on fair application of policies and rules.

Ans: Procedural Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

80. __________ justice is the degree to which others are treated with dignity and respect.

Ans: Interactional Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

81. __________ justice focuses on the fairness of exchanges or transactions.

Ans: Commutative Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

82. __________ is the belief that there are universal values that apply to all people.

Ans: Moral absolutism Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

83. __________ are well-thought-out personal rules and strategies that serve to anchor our ethical decisions and actions.

Ans: Ethical frameworks Bloom’s: Knowledge Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal character and moral development influence ethical decision making.

84. __________ highlight the risks from public disclosure of one’s actions.

Ans: Spotlight questions Bloom’s: Knowledge Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Training in ethical decision making can improve ethical conduct.

85. A(n) __________ is a formal statement of values and ethical standards.

Ans: code of ethics Bloom’s: Knowledge Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Formal codes of ethics set standards for ethical conduct.

86. __________ are people and institutions most directly affected by an organization’s performance.

Ans: Stakeholders Bloom’s: Knowledge Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: What should we know about the social responsibilities of organizations?

87. __________ is the obligation of the organization to act in ways that serve both its own interests and the interests of its stakeholders.

Ans: Corporate social responsibility Bloom’s: Knowledge Level: Easy

Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social responsibility is an organization’s obligation to best serve society.

88. A(n) __________ exists when corporate social responsibility leads to improved financial performance that leads to more socially responsible actions in the future.

Ans: virtuous circle Bloom’s: Knowledge Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Scholars argue cases for and against corporate social responsibility.

89. __________ is a goal that addresses the rights of present and future generations as costakeholders of present-day natural resources.

Ans: Sustainability Bloom’s: Knowledge Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Sustainability is an important social responsibility goal.

90. __________ is risk taking by entrepreneurs striving to solve pressing social problems.

Ans: Social entrepreneurship Bloom’s: Knowledge Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social business and social entrepreneurs point the way in social responsibility.

Essay

91. What does the statement “Something may be legal but unethical” mean?

Ans. The “letter of the law” does not always translate into what others would consider as ethical actions. For example, U.S. laws once allowed slavery, permitted only men to vote, and allowed young children to work full-time jobs. Today we consider such actions unethical.

Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

92. What is the most critical item necessary in order to have ethical behavior in organizations and why?

Ans: Ethical behavior on the part of senior management is the most critical item because senior managers have the position and the power to affect employee behavior.

Bloom’s: Evaluation Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Managers as positive role models can inspire ethical conduct.

93. What is the relationship between ethics, values, terminal values, and instrumental values?

Ans: Ethics is a code of moral principles that defines right from wrong. Values, in a personal sense, are broad beliefs about what is ethical. Terminal vales and instrumental values are subsets of personal values. Terminal values have to do with desired end states (what a person wants the results of their actions to be) such as happiness, security, and self-respect. Instrumental values determine how a person goes about achieving his/her desired end state.

Bloom’s: Synthesis Level: Difficult Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

94. Different people have different views of what is ethical. Discuss each of the four different philosophical views as alternative approaches to moral reasoning.

Ans: The four different views are utilitarian, individual, justice, and moral rights. They are defined as: 1. The utilitarian view is that ethical behavior delivers the greatest good to most people.

2. The individual view is that ethical behavior is in the best long term interest of the individual who is making the decision.

3. The justice view is that ethical behavior which treats people impartially and fairly.

4. The moral rights view is that ethical behavior which respects and protects a person’s fundamental rights.

Bloom’s: Comprehension Level: Difficult Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

95. What are cultural relativism and moral absolutism? How do they influence international business ethics?

Ans: Cultural relativism is the belief that the values and practices of the local area determine what is ethical. Moral absolutism is the belief that there are absolute truths that apply universally and that these truths are more important than local values. Sometimes, one society tries to impose their ethics on another society. This is particularly true in the international business arena. When this occurs, it is called ethical imperialism.

Bloom’s: Evaluation Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

File: mod04, Chapter 4: Managers as Decision Makers

Multiple Choice

1. Identifying and taking action to resolve problems is called __________. a) problem solving b) information competency c) information management d) inquiring Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

2. Which of these refers to the ability to gather and use information to solve problems? a) Problem solving b) Information competency c) Information disbursement d) Inquiring Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

3. When something is wrong or likely to go wrong, it is called a __________. a) danger b) potential danger c) performance threat d) mistake Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

4. Information competency involves all of the following skills EXCEPT a) Locating appropriate data. b) Evaluating the data for information potential. c) Organizing the information. d) Analyze information to make decisions.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

5. James is a proactive information gatherer and a forward thinking manager. James is said to be a a) problem seeker. b) problem avoider. c) lazy manager. d) problem solver.

Ans: a Bloom’s: Application Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can be problem avoiders, problem solvers, or problem seekers.

6. Individuals who ignore information that would otherwise signal the presence of a performance threat or opportunity, and who prefer not to make decisions are said to be a) problem seekers. b) problem avoiders. c) lazy managers. d) problem solvers.

Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can be problem avoiders, problem solvers, or problem seekers.

7. A situation that offers the possibility of a better future if the right steps are taken is called a __________. a) performance threat b) potential problem c) performance opportunity d) future problem Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

8. Jessica always tends to approach a problem in a flexible and spontaneous fashion. This refers to __________. a) logic b) decision making c) systemic thinking d) intuitive thinking Ans: d Bloom’s: Application Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can use systematic and intuitive thinking.

9. If you are a systematic thinker, you will a) try to stay very flexible in his thinking. b) generally be spontaneous. c) be analytical in his approach. d) be creative in his methods.

Ans: c Bloom’s: Comprehension Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can use systematic and intuitive thinking.

10. The three types of decision making environments are: a) good, neutral, and bad. b) certain, risk, and uncertain. c) absolute, not sure, and no idea. d) certain, not sure, and risk.

Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

11. A decision making environment in which you lack complete information, and it is difficult if not impossible to assign probabilities to the outcomes is called a(n) __________ environment. a) uncertain b) bad c) improbable d) risk Ans: a Bloom’s: Comprehension Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

12. Which is the fourth cognitive style of decision making? Sensation thinkers, intuitive thinkers, sensation feelers, and a) risk takers. b) intuitive feelers. c) sensation takers. d) intuitive takers.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers use different cognitive styles to process information for decision making.

13. __________ are comfortable with abstraction and unstructured situations. They tend to be idealistic, prone toward intellectual and theoretical positions, and are logical and impersonal. a) Sensation feelers b) Intuitive thinkers c) Sensation thinkers d) Intuitive feelers Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers use different cognitive styles to process information for decision making.

14. A decision making environment in which you have complete information on possible alternatives and their consequences is called a __________ environment. a) favorable b) good c) certain d) risk Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

15. When faced with decision circumstances in which the information is incomplete, yet one can still reasonably estimate probabilities for the outcomes of various options, the environment is said to be a(n): a) risk environment. b) certain environment. c) uncertain environment. d) programmed environment.

Ans: a Bloom’s: Comprehension Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

16. A(n) __________ is a choice among possible alternative courses of action. a) alternative b) inquiry c) guess d) decision Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

17. A __________ decision applies a solution from past experience to a routine problem. a) correct b) programmed c) nonprogrammed d) complex Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

18. A __________ decision applies a specific solution crafted for a unique problem. a) simple b) programmed c) nonprogrammed d) questionable Ans: c

Bloom’s: Knowledge Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

19. Joe, a HR manager, is tired of answering the same questions over and over again. His team of information technology experts developed auto response software. This software helped in reducing the number of times Joe had to be involved personally. Joe has made a __________ decision to implement __________ decision software. a) difficult/complex b) nonprogrammed/programmed c) programmed/nonprogrammed d) complex/difficult Ans: b Bloom’s: Application Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

20. Which of these represent the most significant factor that determines whether a decision is a programmed or nonprogrammed? a) Whether the problem is new or unusual b) The number of people involved in the outcome c) The length of time available d) The amount of money involved in the solution Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

21. What is the first step in the decision-making process? a) Generate alternatives b) Evaluate results c) Define the problem

d) Make the decision Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are the five steps in the decision-making process?

22. Which of the following is not a common error in the first step of the decision-making process? a) Defining the problem too narrowly b) Dealing with symptoms, not causes c) Focusing on the wrong problem d) Spending too much time defining the problem Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 1 is to identify and define the problem.

23. In a company, the major issue is a drop in its sales. Which of the following should be followed by the company? a) The company should have a broad focus. b) The company should focus on the right problem. c) The company should have a narrow focus. d) The company should look at the problem, not the symptom.

Ans: d Bloom’s: Comprehension Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 1 is to identify and define the problem.

24. What is the second step of the decision-making process? a) Deciding what to do b) Evaluating the problem c) Generating alternative courses of action d) Implementing the decision Ans: c Bloom’s: Knowledge

Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are the five steps in the decision-making process?

25. During which step of the decision-making process, cost-benefit analysis is used? a) Evaluating results b) Defining the problem c) Implementing the decision d) Generating alternative courses of action Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 2 is to generate and evaluate alternative courses of action.

26. Comparing the costs and benefits of each potential course of action is called a) evaluating results. b) cost-benefit analysis. c) strategic planning. d) conducting ethics double check.

Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 2 is to generate and evaluate alternative courses of action.

27. What is the third step in the decision-making process? a) Gathering more information b) Implementing the decision c) Completing cost-benefit analysis d) Deciding on a course of action Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process?

28. The classical and behavioral models could be used in what step of the decisionmaking process? a) Evaluating results b) Implementing the decision c) Deciding on a course of action d) Doing a cost benefit analysis Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

29. The __________ decision making model assumes rationality and complete information. a) classical b) logical c) behavioral d) optimizing Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

30. When making decisions, Jason attempts to select the absolute best alternative solution to a problem. Jason can be said to be focused on __________ decision. a) managing superior b) optimizing c) carefully implemented d) satisficing Ans: b Bloom’s: Application Level: Difficult Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

31. All humans have limited information processing capabilities. These are called __________ limitations.

a) intuitive b) financial c) behavioral d) cognitive Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

32. The __________ decision making model assumes incomplete information and bounded rationality. a) participative b) classical c) behavioral d) delegation Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

33. A decision that chooses the first satisfactory alternative that is presented is called a(n) __________ decision. a) OK b) reasonable c) satisficing d) classical Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

34. The classical decision model attempts to provide a(n) __________ decision. a) behavioral b) programmed

c) optimizing d) satisficing Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

35. The behavioral decision model attempts to provide which of these decisions? a) Classical b) Satisficing c) Programmed d) Optimizing Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

36. The fourth step in the decision-making process is a) evaluating results. b) implementing the decision. c) conducting cost benefit analysis. d) generating alternatives.

Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process?

37. A lack-of-participation error occurs when: a) employees do not understand what the management wants them to do. b) there is a shortage of employees to implement the decision. c) employees are not capable of implementing the decision. d) employees, who have to implement the decision, do not participate in the decision making process.

Ans: d

Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 4 is to implement the decision.

38. The final step in the decision-making process is to: a) ensure that your options list has all possible alternatives. b) search for the optimum decision. c) gain support for your decision. d) evaluate the results of your implemented decision.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process?

39. Authors suggest that in all steps of the decision-making process, a decision maker should consider a) escalating commitment. b) alternative analysis. c) ethical reasoning. d) financial impact.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Ethical reasoning is important at all steps in decision making.

40. “How would I feel if my family found out about this decision?” “How would I feel if this decision was published in the local newspaper or posted on the Internet?” These are examples of __________ ethical questions. a) casual b) spotlight c) contingent d) corporate Ans: b Bloom’s: Comprehension Level: Difficult Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Ethical reasoning is important at all steps in decision making.

41. The generation of a novel idea or approach that solves a problem or identifies an opportunity is called a) problem solving. b) representative thinking. c) creativity. d) availability heuristic.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Personal factors help drive creativity in decision making.

42. Which of the following is NOT one of the drivers of personal creativity? a) Task expertise b) Task motivation c) Subjective experience d) Creativity skills Ans: c Bloom’s: Knowledge Level: Difficult Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Personal factors help drive creativity in decision making.i

43. Which of these situations would not suggest a group-based decision? a) The problem is complex, and you need a lot of information. b) The problem calls for a creative solution. c) The problem solution needs the support of a lot of people in order to work. d) The problem needs a quick solution.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Group decision making has both advantages and disadvantages.

44. Which heuristic occurs when people use a stereotype to assess the likely occurrence of an event? a) Escalating commitment

b) Representativeness c) Anchoring and adjustment d) Availability Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section References: Judgmental heuristics and other biases and traps may cause decision-making errors.

45. When people adjust a previously existing value to make a decision, which heuristic occur? a) Escalating commitment b) Representativeness c) Anchoring and adjustment d) Availability Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section References: Judgmental heuristics and other biases and traps may cause decision-making errors.

46. Solving a problem based on your perception of the situation, positive or negative is known as a(n) __________. a) availability heuristic b) programmed decision c) framing error d) representative heuristic Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 3: Understand current issues in managerial decision making.

Section References: Judgmental heuristics and other biases and traps may cause decision-making errors.

47. If Cristina insists on continuing on a course of action even though it is not working, she is falling in the trap of which of these?

a) Escalating commitment b) Framing error c) Anchoring heuristic d) Availability heuristic Ans: a Bloom’s: Application Level: Difficult Learning Objective 3: Understand current issues in managerial decision making.

Section References: Judgmental heuristics and other biases and traps may cause decision-making errors.

48. When Mark attends only to information that confirms a decision already made, he is falling in the trap of which of these? a) Escalating commitment b) Framing error c) Anchoring heuristic d) Confirmation error Ans: d Bloom’s: Application Level: Difficult Learning Objective 3: Understand current issues in managerial decision making.

Section References: Judgmental heuristics and other biases and traps may cause decision-making errors.

True/False

49. Not all decisions are going to be easy ones; some will have to be made under tough conditions; and, not all decisions will turn out right.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

50. Managers who are problem solvers will make decisions and try to solve problems when required.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can be problem avoiders, problem solvers, or problem seekers.

51. Research finds that intuitive thinking is less valuable and practical than systematic thinking.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can use systematic and intuitive thinking.

52. When an individual moves in management ranks, the level of certainty in a problem environment tends to increase.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

53. Nonprogrammed decisions are used to create novel solutions for unique situations.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

54. Sensation feelers prefer broad global issues. They are insightful and tend to avoid details, and uncomfortable with intangibles.

Ans: False

Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers use different cognitive styles to process information for decision making.

55. Step one in the decision-making process is where the problem or opportunity is identified and defined.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process?

56. In the second step of the decision-making process, the various options are compared.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process?

57. The problem with the classical decision model is that it does not take into account the cognitive limitations that we, as humans, have.

Ans: True Bloom’s: Knowledge Level: Difficult Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

58. When generating alternative courses of action, extensive information gathering should identify alternative courses of action as well as their anticipated consequences.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 2 is to generate and evaluate alternative courses of action.

59. Once the decision is made, the role of the manager in the decision-making process is over.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 4 is to implement the decision.

60. According to the book The Shallows, author Nicolas Carr argues that the Internet may have lightened our thinking by replacing deep thought and reflection with shallowminded pursuits.

Ans: True Bloom’s: Knowledge Level: Difficult Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

61. The evaluation process should not only consider whether the results were gained, but should also determine whether any undesirable side-effects occurred.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 5 is to evaluate results.

62. Managers turn to heuristics to make decisions with limited information, time, and energy.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

63. An availability heuristic solves the current situation based upon its similarity to a stereotyped set of occurrences.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

64. How we “frame” an issue, meaning cast it in a positive or negative light, impacts not only how we discuss the issue, but how we solve it.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

65. A common management problem when implementing decisions is escalating commitment.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

66. The problem in a “crisis” situation is not just that it is often unexpected, but that it must be handled quickly in order to avoid a disaster.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Managers must be prepared for crisis decision making.

Fill-in-the-Blank

67. __________ add value to organizations through their intellectual capabilities.

Ans: Knowledge workers Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

68. An operational deficiency involving something going wrong or about to go wrong is known as a(n) __________.

Ans: performance threat/problem Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

69. __________ are decision makers who ignore information and trouble signals.

Ans: Problem avoiders Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can be problem avoiders, problem solvers, or problem seekers.

70. __________ involves problem-solving in a rational, step-by-step, analytical process.

Ans: Systematic thinking Bloom’s: Knowledge Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can use systematic and intuitive thinking.

71. A(n) __________ is a choice among possible alternative courses of action.

Ans: decision

Bloom’s: Knowledge Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

72. Evaluating alternatives, in which positive and negative outcomes are examined, is done with the help of a tool called __________.

Ans: cost-benefit analysis Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 2 is to generate and evaluate alternative courses of action.

73. If you are seeking the best possible solution, you are seeking to __________ your decision.

Ans: optimize Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

74. __________ involves selecting the first option that appears to work in solving the problem.

Ans: Satisficing Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

75. The __________decision model describes decision-making with limited information and bounded rationality.

Ans: behavioral Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

76. The __________ heuristic assesses the likelihood of an occurrence using a stereotyped set of similar events.

Ans: representativeness Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

77. A(n) __________ is solving a problem in the context in which it is perceived; either positive or negative.

Ans: framing error Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

Essay

78. What makes decision-making so challenging in the “real world” of management?

Ans: Information is incomplete, risk assessment is uncertain, problems can be inappropriately defined, and our thinking processes are limited and plagued with biases.

Bloom’s: Evaluation Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Learning Objective 2: Identify five steps in the decision-making process.

Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

79. Why do people escalate commitment to failing actions?

Ans: The difference is not always clear between “just a little more persistence” bringing success (note all the cultural myths about heroes that stuck with it and triumphed) and when an effort will never work; peer pressure to keep something going; and ego and the desire to avoid being associated with a mistake can all play a role in escalation Bloom’s: Evaluation Level: Difficult Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

80. List and define the three decision making environments and their relationship to programmed and nonprogrammed decisions.

Ans. The three decision making environments are certainty, risk, and uncertainty.

A certain environment is one in which there is complete information regarding alternatives and their consequences. Programmable decisions are readily applied to this environment.

A risk environment is one in which there is a lack of information regarding alternatives and their consequences, but it is possible to assign probabilities of occurrence to the consequences. Some programmable decisions are possible in this environment depending on the quality and value of the probabilities.

An uncertain environment is the same as a risk environment, except that it is very difficult or impossible to assign probabilities of occurrence to the consequences.

Programmable decisions are not likely or even possible in this environment. Almost all decisions will be nonprogrammable.

Bloom’s: Synthesis Level: Difficult Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

81. In simple short terms, state the five steps in the decision making process.

Ans: The five steps in the decision making process are 1.Find and define the problem, 2. Generate and evaluate alternative solutions, 3. Make the decision and conduct an ethics check, 4. Implement the decision, and 5.Evaluate the results.

Bloom’s: Comprehension Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process?

82. Define the two types of decision models and relate them to the decision making environments (certainty, risk and uncertainty) and to the two types of decisions (optimizing and satisficing).

Ans: The two types of decision models are classical and behavioral.

The classical model is a rational quantitative approach to decision making. It is best applied to a certain environment in which full information is available. The objective is to arrive at the very best (optimizing) solution.

The behavioral model is based on bounded rationality or recognition that rationality and logic have their limits. It is applicable to both the risk and uncertainty environments where complete information is not available.

Bloom’s: Analysis Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

File: mod05, Chapter 5: Plans and Planning Techniques

Multiple Choice

1. Which of the following is NOT one of the four functions of management? a) Planning b) Controlling c) Organizing d) Recruiting Ans: d Bloom’s: Knowledge Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

2. Which of these refer to the process of setting goals and objectives and determining how to accomplish them? a) Organizing b) Planning c) Leading d) Controlling Ans: b Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

3. Planning inludes a) allocating and arranging resources. b) guiding the efforts of human resources. c) setting goals and objectives. d) monitoring task accomplishments.

Ans: c Bloom’s: Knowledge Level: Easy

Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

4. Jason wishes to achieve specific results. These are referred to as a) measurements. b) plans. c) objectives. d) end points.

Ans: c Bloom’s: Comprehension Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

5. Allocating and arranging resources in order to accomplish a task is called __________. a) controlling b) planning c) leading d) organizing Ans: d Bloom’s: Knowledge Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

6. Guiding and motivating others to achieve high levels of performance is called __________. a) planning b) organizing c) leading d) controlling Ans: c Bloom’s: Knowledge Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

7. Sonya’s primary responsibilities include the process of monitoring task accomplishments and taking corrective action in her department. This is called __________. a) controlling b) planning c) leading d) organizing Ans: a Bloom’s: Application Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

8. First step one of the planning process when setting goals include a) getting the mundane, trivial things planned first. b) focusing on easy goals to build momentum. c) keeping your eye on the past in order to know what you have accomplished. d) defining your objectives, so that you know where you want to go.

Ans: d Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

9. Which of the following is the fourth step in the planning process? a) Implementing the plan b) Making the plan c) Defining objectives d) Developing premises regarding future conditions Ans: b Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

10. Stretch goals are __________. a) impossible to meet b) good exercises c) only for the very best employees d) difficult and challenging, but achievable Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Describe useful planning tools and techniques.

Section Reference: Goal setting helps align plans and activities throughout an organization.

11. A(n) __________ is a statement of intended means for accomplishing objectives. a) plan b) schedule c) objective d) idea Ans: a Bloom’s: Knowledge Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

12. Which of these refers to a process by which one establishes lower-level objectives in order to meet higher-level objectives? a) Objective analysis b) Strategic analysis c) A hierarchy of objectives d) A chain of command Ans: c Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves coordination and control.

13. Objectives should be measurable and __________.

a) specific b) share a loftier goal c) a well-kept secret d) easily accomplishable Ans: a Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

14. Planning offers all of the following advantages EXCEPT a) a guarantee of success. b) Helping us to sharpen our focus. c) Increasing our flexibility. d) avoiding complacency.

Ans: a Bloom’s: Comprehension Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves focus and action orientation.

15. The last of the four management functions, control, actually begins with a) a good organization. b) a well-developed plan to measure against. c) inspired leadership to develop commitment. d) inspired direction.

Ans: b Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves coordination and control.

16. Plans that cover a year or less are called __________ plans. a) medium b) strategic c) short-range

d) long-term Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify the types of plans used by managers.

Section Reference: Managers use short-range and long-range plans.

17. Plans that usually cover three years or more are called __________. a) medium b) operational c) short-range d) long-range Ans: d Bloom’s: Knowledge Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use short-range and long-range plans.

18. A future-oriented statement that clarifies the purpose of the organization refers to a(n): a) operational plan b) vision statement c) strategic plan d) tactical plan Ans: b Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

19. Plans that identify the long-term direction for the organization, including a vision of what and where the organization wants to be in the longer-term, are called __________ plans. a) extended b) operational c) strategic d) lofty Ans: c Bloom’s: Knowledge

Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

20. In general, people are comfortable with which of these time horizons? a) One week b) Three months c) Ten year d) Five years Ans: b Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use short-range and long-range plans.

21. Plans that define the various short term activities needed to implement strategic plans are called __________ plans. a) strategic b) business c) operational d) long-term Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

22. A plan covering production activities for the three months would be an example of a(n) __________ plan. a) long-term b) operational c) strategic d) recovery Ans: b Bloom’s: Comprehension Level: Medium

Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

23. Tactical plans are appropriate to all of the following EXCEPT a) production. b) marketing. c) human resources. d) top strategic management.

Ans: d Bloom’s: Comprehension Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

24. Plans that specifically identify how different parts of the organization will contribute to accomplishing strategic plans are called __________ plans. a) strategic b) tactical c) financial d) functional Ans: d Bloom’s: Knowledge Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

25. A plan that communicates broad guidelines for employees to use in their decisions and actions is called a __________. a) policy b) project plan c) procedure d) budget Ans: a Bloom’s: Knowledge Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

26. __________ plans deal with the methods and technology needed by people in their work. a) Financial b) Facilities c) Production d) Marketing Ans: c Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

27. Which of these precisely describes actions to take in specific situations? a) Policy b) Project plan c) Long-term plan d) Procedure Ans: d Bloom’s: Knowledge Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

28. At your University, when it is required that all students are expected to follow the guidelines regarding sexual harassment. This is an example of a: a) policy. b) rule. c) procedure. d) law.

Ans: a Bloom’s: Comprehension Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

29. A company poster lists instructions as to what to do in case of a fire alarm. This is an example of a(n) __________. a) policy b) directive c) operating plan d) procedure Ans: d Bloom’s: Application Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

30. A plan that commits resources to projects or activities is called a(n) __________. a) strategy b) business c) ad-hoc d) budget Ans: d Bloom’s: Knowledge Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

31 A(n) __________ budget allocates resources if each budget was brand new. a) strategic b) new c) operating d) zero-based Ans: d Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

32. A ________ type of budget allows resource allocations to vary with the level of activity. a) project b) flexible

c) fixed d) zero-based Ans: b Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

33. Sally has just been told that, funds not used from last year’s budget will not carry over into the next year. Sally has been asked to do a __________. a) project budget b) flexible budget c) fixed budget d) zero-based budget Ans: d Bloom’s: Application Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

34. A budget that allocates a specific amount of resources for a specific purpose is called a __________ budget. a) project b) flexible c) fixed d) zero-based Ans: c Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

35. A budget that compares sales or revenues to expenses is called a(n) __________ budget. a) operating b) flexible c) fixed d) zero-based

Ans: a Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

36. Maria has just been told that she needs to develop a budget to spend $50,000 dollars in next 12 months. Maria has been asked to do a(n) __________ budget. a) operating b) flexible c) fixed d) zero-based Ans: c Bloom’s: Application Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

37. Sally, the general manager at Trinkets Inc. has asked accounting to prepare a cash flow versus expenditure plan for the next year. Sally is asking for a __________ budget. a) financial b) flexible c) fixed d) zero-based Ans: a Bloom’s: Application Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

38. The planning process of “predicting what will happen in the future” is called: a) contingency planning. b) scenario planning. c) forecasting. d) zero-based budgeting.

Ans: c

Bloom’s: Knowledge Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Forecasting tries to predict the future.

39. Qualitative approaches to forecasting include: a) statistical analysis of historical data. b) mathematical models. c) expert opinion. d) surveys Ans: c Bloom’s: Knowledge Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Forecasting tries to predict the future.

40. Which of these refers to the process of developing alternative plans, in anticipation of having problems with implementing the existing plan? a) Contingency planning b) Forecasting c) Scenario planning d) Budgeting Ans: a Bloom’s: Knowledge Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

41. The president of Virtual Products LLC is concerned about next year’s economic outlook.

Even though next year’s plan has been completed, he has requested his staff to generate another plan that assumes a 10% reduction in sales. This is an example of __________. a) contingency planning b) forecasting c) operation planning d) budgeting Ans: a Bloom’s: Application

Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

42. Which of these best describes identifying possible future situations and plans for dealing with them? a) Contingency planning b) Forecasting c) Scenario planning d) Budgeting Ans: c Bloom’s: Knowledge Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Scenario planning crafts plans for alternative future conditions.

43. _____ is a technique that makes use of external comparisons to evaluate current performance. a) Forecasting b) Benchmarking c) Allocating d) Justifying Ans: b Bloom’s: Knowledge Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Benchmarking identifies best practices used by others.

44. What phrase is used to define the things that world class companies do better than others? a) Best practices b) International comparisons c) Operating procedures d) Forecasting Ans: a Bloom’s: Knowledge Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Benchmarking identifies best practices used by others.

45. Involving others, particularly those who implement the plan in the planning process is called __________. a) groupthink b) marketing research c) participatory planning d) selecting alternatives Ans: c Bloom’s: Knowledge Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Participatory planning improves implementation capacities.

True/False

46. Leading consists of guiding the efforts of human resources to ensure high levels of task accomplishment.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the types of plans used by managers.

Section Reference: Planning is one of the four functions of management.

47. One of the critical pieces of the planning effort is defining the objectives.

Ans: True Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

48. The management process is complete once the plan implementation is done.

Ans: False

Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

49. Managerial planning is usually done free of distractions in quiet areas, where the manager can think.

Ans: False Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

50. In the book Analytics at Work, authors Thomas Davenport, Jeanne Harris, and Robert Morison argue that organizations can improve their strategies by making better use of available information to guide decisions.

Ans: True Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

51. Each level of the organization should create their plans independently, in order to be responsive to the varying needs at each level.

Ans: False Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves coordination and control.

52. If you have time management problems, setting aside time to plan may actually help you to have more control over your time.

Ans: True Bloom’s: Knowledge Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves time management.

53. Research shows that it is a waste of time to occasionally relax.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves time management.

54. One of the most consistently top rated “must-have” skills for new graduates entering fastpaced and complicated careers in business and management is money management.

Ans: False Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves time management.

55. Short-range plans focus only on two to three months into the future.

Ans: False Bloom’s: Knowledge Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use short-range and long-range plans.

56. The purpose of strategic plans is to support tactical plans.

Ans: False Bloom’s: Knowledge Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

57. Strategic plans define what specific work units need to do in order for the organization to move ahead.

Ans: False Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

58. A policy describes exactly what actions should be taken in specific situations.

Ans: False Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

59. Plans done by the various departments, such as marketing and manufacturing, are called functional plans.

Ans: True Bloom’s: Knowledge Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

60. One of the former CEOs of Boeing was asked to resign by his board of directors. His violation of the company’s policy on office relationships came to light, after his relationship with a female executive become public.

Ans: True Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

61. If a forecast is carefully created, it can be relied upon to accurately predict the future.

Ans: False Bloom’s: Knowledge Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Forecasting tries to predict the future.

62. Contingency planning identifies alternate courses of action to be implemented in order to meet changing circumstances.

Ans: True Bloom’s: Knowledge Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

63. Planning is best done by independent staff organizations.

Ans: False Bloom’s: Knowledge Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Participatory planning improves implementation capacities.

64. One effective way to build commitment to the implementation of a plan is to involve the people who will have to do the implementing in the creation of the plan.

Ans: True Bloom’s: Knowledge Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Participatory planning improves implementation capacities.

Fill-in-the-Blank

65. __________ is the process of setting goals/objectives and determining how to accomplish them.

Ans: Planning Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify the types of plans used by managers.

Section Reference: Planning is one of the four functions of management.

66. __________ are specific results that one wishes to achieve.

Ans: Objectives Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

67. The __________ is being lulled into inaction by current successes or failures.

Ans: complacency trap Bloom’s: Knowledge Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves focus and action orientation.

68. In order to get the best performance out of your organization, you should use __________ goals to encourage extra effort.

Ans: stretch Bloom’s: Application Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Goal setting helps align plans and activities throughout an organization.

69. Effective planning ensures that each level’s goals support the goals of the next higher level, fitting into a(n) _____ of objectives.

Ans: hierarchy Bloom’s: Knowledge Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves coordination and control.

70. A(n) __________ clarifies the purpose of the organization and expresses what it hopes to be in the future.

Ans: vision Bloom’s: Knowledge Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

71. __________ plans should support strategic plans.

Ans: Tactical or operational Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

72. A(n) __________ communicates broad guidelines for making decisions and taking action.

Ans: policy Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

73. __________ plans deal with the requirements of selling and distributing goods or services.

Ans: Marketing Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

74. A plan that commits resources to projects or activities is called a(n) __________.

Ans: budget Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

75. A(n) __________ budget involves approaching each budget cycle as if it were new, starting from scratch each time.

Ans: zero-based Bloom’s: Knowledge Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

76. __________ is the planning process involved in predicting the future.

Ans: Forecasting Bloom’s: Knowledge Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Forecasting tries to predict the future.

77. __________ are the activation signals for implementing contingency plans.

Ans: Trigger points Bloom’s: Knowledge Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

78. A planning technique that utilizes external comparisons to evaluate internal processes is called __________.

Ans: benchmarking Bloom’s: Knowledge Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Benchmarking identifies best practices used by others.

Essay

79. How does planning fit into the four basic functions of management?

Ans: Planning is the first function and provides the foundation for the other three. Organizing can’t be done until you know where you are headed and what you need to get there. Leading can’t be done until you understand the objective and why it is important to motivate others to achieve. And, controlling can’t be done until you know what your targets were in the first place.

Bloom’s: Evaluation Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

80. Define the difference between a policy and a procedure.

Ans: A policy is a standing plan that communicates broad guidelines for decisions and actions. A procedure is a specific set of steps to take in specific situations.

Bloom’s: Analysis Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

81. What are the four functions of management? Describe each of them.

Ans: The four functions of management are planning, organizing, leading and controlling.

Planning involves establishing stretch objectives, setting a time frame for achieving them and describing how they will be achieved.

Organizing requires allocating and arranging resources necessary to meet the objectives.

Leading includes guiding and motivating others to implement the plan.

Controlling is the process of reviewing and evaluating results and taking necessary corrective action.

Bloom’s: Comprehension

Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

82. State and discuss at least three reasons for planning and the benefits of each.

Ans: Some of the reasons for planning include: 1. Providing a direction and a goal for the company.

This is done by establishing objectives. Objectives define in a specific manner what is to be accomplished, when it should be accomplished and how to accomplish it. Without objectives there is little or no common path to pursue.

2. Communicating with employees.

It is important that those involved in implementing the plan understand what is to be accomplished and why it is important to the company. This can be done by involving those key individuals that will implement the plan in the planning process and presenting the plan to all who will participate no matter what role they will play or what their position in the company.

3. Reviewing and controlling progress versus planning.

Objectives are used to establish milestones against which results can be evaluated and corrective actions taken. This is critical to recognizing problems before they cause serious damage.

4. Improving time management.

Planning allows managers to set priorities and to manage their time according to those priorities.

Other possible answers: 5. Planning improves focus and action orientation. Planning can help sharpen focus and increase flexibility, both of which improve performance. An organization with focus knows what it does best and what it needs to do.

6. Planning improves coordination and control. It’s hard to exercise control without planning objectives. Without control, plans may fail because of a lack of follow-through.

With both, it’s a lot easier to see when things aren’t going well and make the necessary adjustments.

Bloom’s: Evaluation Level: Difficult Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

Section Reference: Planning improves focus and attention.

Section Reference: Planning improves coordination and control.

Section Reference: Planning improves time management.

83. Define a strategic plan, an operational plan and the differences between them.

Ans: Strategic plans set broad, comprehensive and longer term directions for the company.

Strategic plans address the question of how will the company’s objectives be accomplished in the sense of what approach will be used. Operational plans are shorter term and contain specific activities and the schedules for completing them.

Bloom’s: Analysis Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

File: mod06, Chapter 6: Controls and Control Systems

Multiple Choice

1. The process of measuring performance and taking action to ensure desired results are a part of the management function of a) planning. b) organizing. c) leading. d) controlling.

Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Controlling is one of the four functions of management.

2. Which process identifies lessons learned through a completed project, task force assignment, or special operation? a) Performance assignment b) Planning session c) Planning function d) After-action review Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Controlling is one of the four functions of management.

3. Measuring performance and __________ are parts of the foundation of any control system. a) punishing the guilty b) taking corrective action c) training d) rewarding Ans: b Bloom’s: Knowledge

Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

4. Managers need to know that the control process can only begin one way, by a) forecasting. b) establishing objectives and standards. c) measuring actual performance. d) taking necessary action.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

5. What is the second most important step in the control process? a) Forecasting b) Establishing objectives and standards c) Measuring actual performance d) Taking necessary action Ans: c Bloom’s: Knowledge Level: Difficult Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

6. A(n) __________ is a measure of performance results in terms of quantity, quality, cost, or time. a) forecast b) output standard c) input standard d) data base Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

7. Output standards in business would include: a) the average educational level of employees. b) the quality of the raw materials used to make the product. c) quality ratings of the final product. d) reliability ratings on production equipment.

Ans: c Bloom’s: Knowledge Level: Difficult Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

8. A(n) __________ measures work efforts that go into a product. a) input standard b) output standard c) transparent control d) leadership control Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

9. Which of these is NOT needed in order for the second step in the control process to be effective? a) You must be able to conduct accurate measurements. b) You must be timely in the measuring process. c) You must be willing to measure d) You must be able to graph performance objectives and standards Ans: d Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control measures actual performance.

10. At Home Décor, Inc. the production manager requires zero defects on all parts received from its vendors. This is an example of which of these standard/control? a) Output standard b) Feedback control c) Input standard d) Historical standard Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

11. Focusing on substantial differences between actual and desired performance is called management by ___________. a) design b) principal c) direction d) exception Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control takes corrective action as needed.

12. UPS carefully measures the routes and routines of its drivers to establish the times expected for each delivery. When a delivery manifest is scanned as completed, the driver’s time is registered in an electronic performance log that is closely monitored by supervisors. UPS is using __________ comparisons. a) historical b) engineering c) local d) relative Ans: b Bloom’s: Application Level: Difficult Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control compares results with objectives and standards.

13. Ensuring clear directions and needed resources before the work begins refers to ___________ control. a) feedback b) feedforward c) concurrent d) relative Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

14. Control that focuses on what is happening during work in process is called _____ control. a) feedforward b) feedback c) feedless d) concurrent Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

15. Ensuring that the final results meet desired standards is called _________ control. a) feedforward b) feedback c) concurrent d) feedmore Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

16. Work inputs are controlled by which controls? a) Feedforward b) Concurrent

c) Feedback d) Internal Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

17. Which of the following is controlled by concurrent controls? a) Work throughputs b) Work inputs c) Work outputs d) Work Clans Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

18. Which of the following is controlled by feedback controls? a) Work throughputs b) Work inputs c) Work outputs d) Work Clans Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

19. A manager stopping by before a shift to see if everything is ready to go for the day is an example of a(n) __________ control. a) steering b) feedback c) feedforward d) concurrent

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

20. __________ control occurs through self-discipline and self-control. a) Steering b) Feedback c) Internal d) Concurrent Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

21. If managers at XYZ, Inc. are utilizing direct supervision and other administrative systems as control mechanisms, they are focusing on which of these controls? a) Internal b) External c) Bureaucratic d) Reward Ans: b Bloom’s: Applications Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

22. Which of these controls influence behavior through authority, policies, procedures, job descriptions, budgets, and day to day supervision? a) Internal b) External c) Bureaucratic d) Market Ans: c Bloom’s: Knowledge

Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

23. Influencing behavior through norms and expectations set by the organization’s culture is called __________ control. a) market b) external c) bureaucratic d) clan Ans: d Bloom’s: Comprehension Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

24. The influence of competition on the behavior of organizations and their members refers to _____ control. a) internal b) clan c) bureaucratic d) market Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

25. Which of these refer to a process of joint objective setting and reviews between a superior and a subordinate? a) Management by directives b) Management by objectives c) Performance appraisals d) Salary reviews Ans: b Bloom’s: Knowledge Level: Easy

Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

26. The two most common types of objectives in the management by objectives process are work related improvement and __________ objectives. a) strategic b) financial c) personal development d) specific action Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

27. Management by objectives requires all of the following EXCEPT a) a structured process. b) regular communication. c) objectives set by management. d) standards for measurement.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

28. The goals set in an MBO process should be a) specific and measurable. b) flexible with regard to deadlines. c) easy to accomplish; to build confidence. d) vague in accountability; to reduce fear.

Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

29. The process of focusing on quality in every part of the organization with a philosophy of continuous improvement, and doing things right the first time is called a) quality circles. b) total quality management. c) supply chain management. d) international quality control.

Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

30. Which of these are used to graphically display trends, so that exceptions to quality standards can be identified? a) Instruction manuals b) Equations c) Control charts d) Just-in-time data Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

31. The process of always searching for new ways to improve work quality and performance is called __________. a) just-in-time b) supply chain management c) continuous improvement d) quality circles Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

32. One time activities with many component tasks that must be completed in proper order and according to budget are called __________ plans. a) business b) strategic c) project d) long-range Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

33. Which type of management makes sure that specific activities required to complete a project are planned well and accomplished on time? a) Business management b) Financial management c) Strategic management d) Project management Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

34. A(n)__________ chart graphically displays the scheduling of tasks required to complete a project. a) business b) Gantt c) Paredo d) project Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

35. A(n)__________ chart is a combination of the critical path method and the program evaluation and review technique. a) CPM/PERT b) Gantt c) Paredo d) project Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

36. The pathway from project start to conclusion that involves activities with the longest completion time is called the __________. a) critical path b) economic order quantity c) purchasing control level d) financial minimum level Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

37. __________ is the process of ensuring that inventory is only big enough to meet immediate needs. a) Financial planning b) Management control c) Inventory control d) Direct control Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Inventory controls help save costs.

38. The __________ method places new orders when inventory levels fall to predetermined points.

a) master level b) economic order quantity c) purchasing control level d) financial minimum level Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Inventory controls help save costs.

39. When production materials arrive from suppliers as they are required, it is called __________ scheduling. a) on time b) almost on time c) strategic d) just-in-time Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Inventory controls help save costs.

40. The point at which total revenues equal total costs and profits begin is called the __________. a) profit margin b) breakeven point c) maximum cost point d) marginal revenue point Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

41. The calculation of the point where sales revenues equal total costs is called __________ analysis. a) breakeven

b) profit c) loss d) marginal Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

42. The two types of cost used to determine total costs are __________ and __________. a) minimum; maximum b) direct; indirect c) fixed; variable d) hard; soft Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

43. The ability to generate cash to pay bills is known as __________. a) liquidity b) leverage c) asset management d) profitability Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Financial ratios measure key areas of financial performance.

44. Which of the following financial ratios is the correct formula for the current ratio? a) Current assets-inventory/current liabilities b) Current assets/current liabilities c) Sales/average inventory d) Current assets/total liabilities Ans: b

Bloom’s: Knowledge Level: Difficult Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Financial ratios measure key areas of financial performance.

True/False

45. Unfortunately, control plays a negative role in the management process.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Controlling is one of the four functions of management.

46. The major objective in an “after-action” report is to affix blame.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Controlling is one of the four functions of management.

47. Interestingly, research finds that the “control” process is really just about power.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

48. The roots of the control process are in the organizing function.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

49. Informal standards like “we did our best” or “everyone seemed to like it” are very effective as a basis for control adjustments.

Ans: False Bloom’s: Knowledge Level: Difficult Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

50. In the comparison phase of the control process, we are focused on indications that action is needed to correct performance deficiencies.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control measures actual performance.

51. Conformance with rules and procedures, efficiency in the use of resources, and work attendance are examples of input standards.

Ans: True Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

52. Management by exception is when managers give their attention to the situations with the greatest need for action.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control takes corrective action as needed.

53. Historical comparisons benchmark our performance against that being achieved by other people, work units, or organizations.

Ams: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control compares results with objectives and standards.

54. The advantage to feedforward controls is the opportunity to intervene immediately when problems are detected.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

55. MBO is a system that only works to improve organizational improvement objectives.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

56. MBO has been effectively utilized for a long time because it is one of the few management techniques with no observable downsides.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

57. MBO requires the managers to give employees a list of objectives.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

58. When writing a good performance objective, you should identify a date by which the key result will be accomplished.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

59. Six Sigma is not a common quality standard in our global marketplace because it is often too difficult to achieve.

Ans: False Bloom’s: Knowledge Level: Medium Learning Medium Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

60. The reality of “continuous improvement” is that you are never done.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

61. Six Sigma is a quality standard.

Ans: True Bloom’s: Knowledge Level: Easy

Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

62. The function of EOQ is to hold down both order costs and inventory costs.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Inventory controls help save costs.

Fill-in-the-Blank

63. __________ is the ability to call upon inner strength and keep moving forward even when things are tough.

Ans: Resiliency Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Management Live.

64. __________ is the process of measuring performance and taking action to ensure desired results.

Ans: Controlling Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Controlling is one of the four functions of management.

65. Control equation: Need for action = __________ – __________.

Ans: Desired performance, Actual performance (in this order) Bloom’s: Knowledge Level: Medium

Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control compares results with objectives and standards.

66. __________ comparisons use past experience as a basis for evaluating current performance.

Ans: Historical Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control compares results with objectives and standards.

67. If you follow-up with clients to see what they thought of the service level that you provided, you are using a(n) __________ type of control.

Ans: feedback or post-action Bloom’s: Comprehension Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

68. Influencing behavior through norms and expectations set by the corporate culture is called _________ control.

Ans: clan Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

69. __________ control is essentially the influence of market competition on the behavior of organizations and their members.

Ans: Market Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

70. __________ objectives document intentions to accomplish personal growth, such as expanded job knowledge or skills.

Ans: Personal development Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objective is a way to integrate planning and controlling.

71. The common phrase for operations, built upon continuous improvement, that seek to make quality an everyday performance objective is __________.

Ans: total quality management Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

72. Making sure that activities required to complete a project are planned well and accomplished on time is called ____________ management.

Ans: project Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

73. To improve workflow and reduce costs, __________ scheduling seeks to arrange for materials to arrive right as they are needed.

Ans: just-in-time Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Inventory controls help save costs.

74. The place where losses end and profits begin is known as the __________ point.

Ans: breakeven Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

75. The ability to earn revenues greater than costs is called ___________________.

Ans: profitability Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Financial ratios measure key areas of financial performance.

Essay

76. Describe the basic steps in the control process.

Ans: 1st – Determine the objectives and establish the performance standards, 2nd – Measure the actual performance results, 3rd – Evaluate the results by comparing them to the standards established in step 1, and 4th – Take the indicated action to ensure results Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

77. Describe the process for setting up an MBO system.

Ans: Begin with agreed upon goals, standards and procedures for evaluating progress, and a timeline for completion. Proceed with regular communication, periodic meetings to evaluate progress, and joint efforts to ensure support for the goals. End with a joint evaluation of the results and feedback for future efforts.

Bloom’s: Comprehension Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

78. Define the three types of time related controls and their relationship to work inputs, work throughputs, and work outputs.

Ans: The three types of controls are feedforward, concurrent, and feedback.

Feedforward controls are potential problem solving controls in that they attempt to prevent problems from occurring by ensuring that clear directions and adequate resources are in place.

Feedforward controls are used in relation to work inputs.

Concurrent controls are real time controls in that they are looking for problems as they are happening. Concurrent controls are used in relation to work throughputs.

Feedback controls are used after the problem has occurred and the damage has been done.

Feedback controls are used in relation to work outputs.

Bloom’s: Analysis Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

79. Define and discuss the components of TQM (total quality management).

Ans: TQM consists of a number of processes targeted at providing the highest possible level of quality throughout the organization. Some of the components of TQM are continuous improvement, six sigma, and just-in-time scheduling.

Continuous improvement is a mindset that everything can be improved all the time.

Six Sigma is a quality standard of 3.4 defects or less per million products or service deliveries.

Just-in-time is a means of scheduling supplier deliveries, so that they will arrive as they are needed. This process saves time and money by having the suppliers carry the inventory.

Bloom’s: Analysis Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality Control is a foundation of modern management.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

Section Reference: Inventory controls help save costs.

80. Discuss breakeven analysis. What is its intent? How is it calculated?

Ans: Breakeven analysis is a means of calculating the number of units of a product that need to be sold in order to recover total costs. Total costs equal fixed costs plus variable costs. The breakeven point is the point where total revenue from the sales of a product equal the total cost of producing the product. The formula for the breakeven point is Breakeven = Fixed costs – (Price – Variable costs).

Bloom’s: Comprehension

Level: Medium Learning Objective 3: Describe useful control tools and techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

File: mod07, Chapter 7: Strategy and Strategic Management

Multiple Choice

1. A(n) ______________ is a comprehensive action plan that identifies long-term direction for an organization. a) competitive advantage b) strategy c) objective d) idea Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

2. A phrase or statement that focuses organizational energies on achieving a specific goal is called a(n) ____________. a) mission b) vision c) strategic intent d) logo Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

3. Microsoft promised to put a computer within an arm’s reach of every consumer in the world. This could be considered a statement of __________. a) strategic intent b) strategy c) competitive advantage d) global positioning

Ans: a Bloom’s: Application Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

4. Operating in successful ways that are difficult to imitate is called a __________. a) strategy b) strategic intent c) business plan d) competitive advantage Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

5. What are the three levels of strategy used in organizations? a) Personal, competitive, and corporate b) Competitive, corporate, and legal c) Corporate, business, and functional d) Business, functional, and competitive Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

Feedback a): Incorrect. The correct answer is corporate, business, functional.

Feedback b): Incorrect. The correct answer is corporate, business, functional.

Feedback c): Correct.

Feedback d): Incorrect. The correct answer is corporate, business, functional.

6. In a large company, a strategy that sets the long-term direction for the entire company is called a __________ strategy.

a) corporate b) senior level c) functional d) board Ans: a Bloom’s: Comprehension Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

7. Which of these is an example of a strategic question at the corporate level? a) What should our next product be? b) How will we price our newest product? c) Should we set up more sales offices? d) In what industries and markets should we compete?

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

8. A strategy that identifies how a division or business unit will compete in its product or service domain is called a __________ strategy. a) corporate b) middle management c) business d) bottom level Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

9. A strategy that guides activities within a specific area such as engineering and marketing is called a(n) ____________ strategy. a) business b) functional

c) corporate d) employee Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

10. An example of a question asked at the business strategy level is: a) How are we going to compete for customers in a competitive market? b) What is our role in supporting engineering? c) How many divisions should we have? d) In what industries and markets should the corporation compete in?

Ans: a Bloom’s: Comprehension Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

11. An example of a strategic question asked at the functional level is: a) How does the engineering department support the business strategy? b) What kind of product or service mix should we have? c) How are we going to compete within this competitive industry? d) In what industries and markets should the corporation compete in?

Ans: a Bloom’s: Comprehension Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

12. A strategy for expanding an organization’s business is called a __________ strategy. a) big b) multiple c) retrenchment d) growth

Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

13. All of the following are growth strategies EXCEPT: a) concentration b) diversification c) vertical integration d) restructuring Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

14. When a company expands in its existing markets, it is called growth through __________. a) retrenchment b) diversification c) concentration d) globalization Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

15. When a company expands by entering new business areas, it is called growth through __________. a) diversification b) vertical integration c) retrenchment d) globalization Ans: a Bloom’s: Knowledge Level: Easy

Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

16. ABC International is expanding by acquiring suppliers and distributors. This is called growth through a) diversification. b) vertical integration. c) retrenchment. d) globalization.

Ans: b Bloom’s: Application Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

17. The riskiest growth strategy is through __________. a) vertical integration b) unrelated diversification c) related diversification d) backward integration Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

18. Both Coca-Cola and PepsiCo have pursued __________ by purchasing some of their major bottlers. a) forward vertical integration b) backward vertical integration c) forward horizontal integration d) backward horizontal integration Ans: a Bloom’s: Knowledge Level: Difficult Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

19. A strategy whose objective is to correct major problems in the business through radical changes to current operations is called a _________ strategy. a) going out of business b) growth c) status quo d) retrenchment Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

20. Which of the following is NOT a retrenchment strategy? a) Diversification b) Liquidation c) Restructuring d) Divestiture Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

21. When a company closes and sells its assets in order to pay its debts, it is called __________. a) divestiture b) liquidation c) diversification d) restructuring Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

22. When a company reduces the size of its existing operations, it is called __________. a) divestiture b) liquidation c) downsizing d) diversification Ans: c Bloom’s: Comprehension Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

23. The retrenchment strategy that calls for selling off part of the organization is called __________. a) liquidation b) downsizing c) diversification d) divestiture Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

24. A __________ protects an insolvent firm from creditors during a period of reorganization to restore profitability. a) divestiture b) downsizing c) backward integration d) chapter 11 bankruptcy Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

25. A __________ strategy views the world as one market and adopts standard products and advertising for use worldwide. a) multidomestic b) globalization c) diversification d) transnational Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

26. A __________ strategy customizes products and advertising to the culture of the local markets into which they are sold. a) multidomestic b) globalization c) diversification d) transnational Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

27. Which of these strategies tries to operate without a strong national identity and seeks a balance between the efficiency of worldwide operations and responsiveness to local cultures? a) Multidomestic b) Globalization c) Diversification d) Transnational Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

28. Two companies join together in partnership to pursue an area of mutual interest. This is called a(n) __________. a) acquisition b) downsizing c) strategic alliance d) divestiture Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Cooperative strategies focus on alliances and partnerships.

29. A company legally works with its rivals on projects of mutual benefit. This is called __________. a) competition b) collusion c) co-opetition d) restructuring Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Cooperative strategies focus on alliances and partnerships.

30. Garden Tools, Inc. (GTI) uses the internet to market their products and gain competitive advantage. GTI is employing a(n) __________ strategy. a) communication b) computer c) e-business d) electronic Ans: c Bloom’s: Application Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

31. The web-based business model of __________ involves providing free listings from online merchants for directing potential customers to them. a) advertising b) brokerage c) referral d) subscription Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

32. The electronic version of the basic retail strategy of selling directly to customers is __________. a) e-business b) B2C c) B2G d) B2B Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

33. Which strategy uses information technology and the internet to link organizations vertically in supply chains? a) B2C b) B2S c) B2G d) B2B Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

34. Which of these refers to the process of formulating and implementing strategies to accomplish long term goals and to maintain a competitive advantage? a) Strategic controlling b) Strategic management c) Globalization d) Vertical integration Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

35. Strategic management consists of strategy __________ and __________. a) action; implementation b) implementation; direction c) formulation; implementation d) formulation; review Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

36. The __________ statement defines the purpose of the organization and its reason for existence in society. a) operating objectives b) corporate strategy c) mission d) strategy

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategy formulation begins with the organization’s mission and objectives.

37. Specific results that companies try to achieve such as net sales and profits are common results called __________. a) operations b) mission statements c) strategic plans d) operating objectives Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategy formulation begins with the organization’s mission and objectives.

38. “S” in the SWOT analysis refers to: a) Strengths b) Standards c) Social d) Systems Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

39. The SWOT element that focuses on outdated facilities and obsolete technologies in an organization is called __________. a) threats b) opportunities c) weaknesses d) strengths Ans: c Bloom’s: Comprehension Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

40. A special strength, which a company has, that gives it a competitive advantage is called a(n) __________. a) unfair advantage b) differential strategy c) core competency d) differential advantage Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

41. According to Michael Porter, industry attractiveness is a function of which of these five forces? a) Profitability, market share, workforce quality, innovativeness, and social responsibility b) Cost efficiency, product quality, service quality, workforce quality, and innovativeness c) Differentiation, cost leadership, focused differentiation, focused cost, and integration d) Competitors, new entrants, suppliers, customers, and substitutes Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s five forces model examines industry attractiveness.

42. When ABC Manufacturing focuses on offering products that are unique compared to competitors’ products, they are focusing on a(n) _________ strategy. a) integrated b) cost leadership c) differentiation d) diversification Ans: c Bloom’s: Application Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s competitive strategies model examines business or product strategies.

43. A strategic position within an industry relying upon low cost for a market segment would be called a: a) focused price leadership strategy. b) focused differentiation strategy. c) focused cost leadership strategy. d) differentiation strategy.

Ans: c Bloom’s: Comprehension Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s competitive strategies model examines business or product strategies.

44. From the BCG matrix, all of the following describe “question marks” EXCEPT: a) Do not generate much profit b) Low market shares, high market growth c) High market shares, low market growth d) Difficult for strategic decision making

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

45. If Toddler Toys (TT) has products that the Boston Consulting Group would identify as dogs, which of these would be the best strategy for TT? a) High growth b) Retrenchment c) Low growth d) No growth Ans: b Bloom’s: Application

Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

46. A strategic leader must do all of the following EXCEPT: e) Make sure all competing ideas receive attention and resources. f) Implement and control organizational strategies. g) Inspire people to engage in the process of continuous change. h) Create a sense of urgency.

Ans: a Bloom’s: Knowledge Level: Difficult Learning Objective 2: Discuss how managers formulate and implement strategies.

Section Reference: Strategic leadership ensures strategy implementation and control.

Feedback a): Incorrect. The correct answer is make sure all competing ideas receive attention and resources.

Feedback b): Incorrect. The correct answer is make sure all competing ideas receive attention and resources.

Feedback c): Incorrect. The correct answer is make sure all competing ideas receive attention and resources.

Feedback d): Correct.

True/False

47. Business strategies should support business goals.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

48. The key to having a sustainable competitive advantage is to operate in a way that is difficult to imitate.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

49. With the release of its iPad, Apple was the first to market an innovative product by linking design, technology, and customer appeal. As such, the iPad offers Apple a sustainable competitive advantage.

Ans: True Bloom’s: Comprehension Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

50. A functional strategy provides long-term direction for the total enterprise.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

51. The advantage of growth through concentration is that you are growing in an area that you know and, presumably, have expertise.

Ans: True Bloom’s: Comprehension Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

52. A retrenchment strategy could be a “going out of business” strategy.

Ans: True Bloom’s: Comprehension Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

53. Critical thinking is a “must have” for success in strategic management.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

54. Just about any kind of partnership between two companies could be called a strategic alliance.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Cooperative strategies focus on alliances and partnerships.

55. The strategy of working with rivals on projects of mutual benefit is called crowdsourcing.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Cooperative strategies focus on alliances and partnerships.

56. The web-based business model of infomediary brings buyers and sellers together for online business transactions and taking a percentage from the sales.

Ans: False Bloom’s: Knowledge Level: Medium

Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

57. The process of strategic management focuses only on developing strategies.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

58. A mission statement includes specific goals that the organization wants to achieve.

Ans: False Bloom’s: Knowledge Level: Difficult Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategy formulation begins with the organization’s mission and objectives.

59. A SWOT analysis includes a detailed examination of an organization’s strengths and weaknesses.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

60. A special strength that gives an organization a competitive advantage is called a core competency.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

61. Porter’s Model of Industry Attractiveness includes four competitive forces.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s five forces model examines industry attractiveness.

62. Operating objectives such as profits, cost efficiency, market share, product quality, a talented workforce, innovation, and social responsibility are often under scrutiny when, executives meet to discuss how well an organization is doing.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategy formulation begins with the organization’s mission and objectives.

63. A focused differentiation is when you compete on price with your competitors.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s competitive strategies model examines business or product strategies.

64. The makers of Coke and Pepsi follow a focused cost leadership strategy.

Ans: False Bloom’s: Application Level: Difficult Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s competitive strategies model examines business or product strategies.

65. “Cash cows” are the business units that have high market shares in high-growth markets in the BCG matrix.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

66. Strategic leadership inspires people to implement organizational strategies.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategic leadership ensures strategy implementation and control.

Fill-in-the-Blank

67. The ability to perceive situations, gather and interpret relevant information, and make decisions is called __________.

Ans: critical thinking Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Management Live.

68. A(n) __________ is a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish its goals.

Ans: strategy Bloom’s: Knowledge

Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

69. Strategies that guide the activities of specific areas in implementing the organizational-level strategies are called ________ strategies.

Ans: functional Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

70. When your company expands into new areas of business it is called ________.

Ans: diversification Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

71. __________ entails cutting the size of your organization and reducing the workforce.

Ans: Downsizing Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

72. When a business owner sells off parts of their organization to refocus attention on core business areas it is called a _________.

Ans: divestiture Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

73. The international business strategy that adopts standard products and advertising to use worldwide is called a(n) __________ strategy.

Ans: globalization Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

74. __________ is strategic use of the Internet to engage customers and potential customers in providing opinions and suggestions on products and their designs.

Ans: Crowdsourcing Bloom’s: Knowledge Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

75. The process of putting strategies into action is called strategic _____________.

Ans: implementation Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

76. The shorter-term guides to action under the mission statement are called __________.

Ans: operating objectives Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategy formulation begins with the organization’s mission and objectives.

77. Special strengths of an organization that give the organization a competitive advantage are called __________________.

Ans: Core competencies Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

78. A(n) __________ strategy seeks the lowest costs of operations within a special market segment.

Ans: focused cost leadership Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s competitive strategies model examines business or product strategies.

79. __________ is the capability to inspire people to successfully engage in a process of continuous change, performance enhancement, and implementation of the firm’s goals.

Ans: Strategic leadership Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategic leadership ensures strategy implementation and control.

Essay

80. Define the difference between a competitive advantage and a sustainable competitive advantage.

Ans: A competitive advantage is something that you do better than your rivals. However, a sustainable competitive advantage has the additional strength of being a competitive advantage that is also difficult to imitate.

Bloom’s: Comprehension

Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

81. What is the difference between a globalization strategy and a transnational strategy?

Ans: A globalization strategy attempts to develop standard products and a strong national identity for use worldwide, whereas a transnational strategy tries to operate without a strong national identity.

Bloom’s: Comprehension Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

82. What are the three levels of strategy in large companies? Define each of them as to their relationship to organizational structure, their purpose and their strategic questions.

Ans: The three levels of strategy are corporate, business and functional.

Corporate is the highest level. The corporate strategy sets the direction for the corporation as a whole. At this level, the strategic question is “In what industries and markets should the corporation compete?”

The Business strategy is for those divisions and business units that report to corporate management. Each division or unit will have its own strategy, but these strategies must be in support of the corporate strategy. The strategic question at this level is, “How are we going to compete for customers in our industries and markets?”

The Functional strategy is for those departments such as production, engineering, and marketing that report to division management. Each department may have its own strategy, but all of the functional strategies must support each other as well as the business strategy. The strategic question at the functional level is “How can we best utilize resources within the function to support implementation of the business strategy?”

Bloom’s: Synthesis Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

83. Name Porter’s Five Forces and describe their relation to the organization’s internal and external environments.

Ans: The Five Forces are Industry Competition, Suppliers, Customers, New Entrants, and Substitute Products.

Industry Competition is the rivalry that exists among competing firms. Typically, there are a few competitors that dominate the market in terms of their size and relative market share.

Suppliers are the firms from which a company purchases its equipment and raw materials. Large suppliers may have broader product lines or lower prices, but smaller suppliers may offer more personal service.

Customers are the reason for a firm’s existence. Large customers offer greater sales but, because of their buying power, they often demand lower prices.

New Entrants are potential competitors who might enter the market. Too large or too many competitors can destroy the profitability of a market.

Substitute Products are always a threat. They are often a result of new technologies and can literally destroy a company that does not keep up with the newer technology.

Bloom’s: Analysis Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s five forces model examines industry attractiveness.

84. Discuss the classifications in the Boston Consulting Group’s matrix as they relate to industry growth, market share, and business strategy.

Ans: The BCG matrix consists of Cash Cows, Stars, Question Marks, and Dogs.

Cash Cows are high market share low industry growth businesses. They are typically profitable and cash generators. The cash cow strategy is little or no growth.

Stars are high market share high industry growth businesses. They are typically profitable, but not cash generators due to the high cost of maintaining their growth. The stars strategy is to at the market rate or higher.

Question Marks are low market share high industry growth businesses. They are probably not profitable and cash users. The question mark strategy is either high growth or retrenchment.

Dogs are low market share low industry growth businesses. They most likely are not profitable and cash users. The dog strategy is retrenchment.

Bloom’s: Evaluation Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

File: mod08, Chapter 8: Organization Structure and Design

Multiple Choice

1. Which management function entails the process of arranging people and resources to work toward a common goal? a) Controlling b) Leading c) Planning d) Organizing Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizing is one of the management functions.

2. An organizational structure consists of all the following EXCEPT a) a system of tasks. b) reporting relationships. c) management mission. d) communication linkages.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization Charts describe the formal structures in organizations.

3. A(n) __________ graphically describes the arrangement of work positions and reporting relationships. a) informal structure b) PERT chart c) organization chart d) business strategy Ans: c Bloom’s: Knowledge

Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization Charts describe the formal structures in organizations.

4. Dividing the work to be done into a number of jobs that can be done by different people with different skills is called __________. a) work multiplexing b) division of labor c) occupational planning d) strategic planning Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization Charts describe the formal structures in organizations.

5. Organizational charts provide all of the following EXCEPT a) a clear division of work. b) lines of supervisory relationships. c) recognition of the spans of control. d) unofficial relationships among an organizations members.

Ans: d Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization Charts describe the formal structures in organizations.

6. A chart that describes the companies formal structure is called a(n): a) PERT chart. b) employee chart. c) organizational chart. d) division of labor.

Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization Charts describe the formal structures in organizations.

7. Your roommate wants to learn about organizational chart. You can tell her that these chart can tell you all of these about an organization EXCEPT their a) division of work. b) span of control. c) major subunits. d) control mechanisms.

Ans: d Bloom’s: Application Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization Charts describe the formal structures in organizations.

8. The set of unofficial relationships among an organization’s members is called a(n) __________ structure. a) informal b) planned c) formal d) industry Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizations also operate with informal structures.

9. Informally defined organizations made up of unofficial employee working relationships are often referred to as __________ organizations. a) strategic b) vertical c) shadow d) formal Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizations also operate with informal structures.

10. All of the following are problems with informal groups EXCEPT they: a) assist in getting the work done. b) may work against organizational goals. c) breed resistance to change. d) distract members from their work.

Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Informal structures have good points and bad points.

11. The process of grouping together people and jobs into work units is called __________. a) informal structure b) relationship management c) socialization d) departmentalization Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

12. A __________ structure groups together people with similar skills who perform similar tasks. a) cross-functional b) functional c) horizontal d) matrix Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

13. At Ink Pens Manufacturing (IPM), there are departments of Marketing, Engineering, and Manufacturing. IPM exemplifies a __________structure. a) matrix b) cross functional c) informal d) functional Ans: d Bloom’s: Application Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

14. Big Money Bank has many branches which are all managed by branch managers who have loans, investments, operations, and trust managers reporting directly to them. This is an example of a __________ structure. a) dysfunctional b) matrix c) network d) product Ans: d Bloom’s: Application Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

15. Community Bank currently operates with a functional structure. At this bank, there is lack of communication across functional departments. The bank is facing which of these problems? a) Matrix structure b) Top-down structure c) Functional chimneys d) Cross-functional team Ans: c Bloom’s: Application Level: Difficult Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

16. The lack of communications between functional departments in a functional structure often results in which of the following? a) A lack of coordination between the functional units. b) A lack of expertise in solving technical problems. c) No clear career path is available for employees. d) A lack of training within the departments.

Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

17. Which structure groups together people working on the same product, in the same geographical area, or with similar customers? a) Matrix b) Geographical c) Divisional d) Informal Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

18. Maria, vice president of operations at Choco Candy, Inc. (CCI) is developing plans to create new divisions of CCI in China, India, and Malaysia. Maria is developing a _______ structure for CCI. a) product b) geographical c) team d) service Ans: b Bloom’s: Application Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

19. Which of the following is NOT a form of divisional structure? a) Product b) Functional c) Customer d) Process Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

20. The process type of divisional structure focuses on: a) the good or service produced. b) the location or activity. c) the customer or client serviced. d) the activities part of the same process.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

21. An organizational structure that combines a functional structure with a divisional structure to emphasize project or program needs is called a(n) __________ structure. a) informal b) operational c) vertical d) matrix Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

22. Matrix structures offer all of the following advantages EXCEPT a) they are less costly than traditional structures. b) a clear accountability for projects. c) improved communication across functions. d) problem-solving at the team-level.

Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

23. A cross-functional team member in a matrix structure reports to __________ manager(s). a) 0 b) 1 c) 2 d) 3 Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

24. Your manager is considering options between a matrix structure and a team structure.

Based on what you have learned in this class, you can tell her that the major difference between a matrix structure and a team structure is that a team structure: a) has no functional management. b) has project management. c) is always temporary. d) has no project management.

Ans: d Bloom’s: Comprehension Level: Difficult Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

Section Reference: Team structures use many permanent and temporary teams.

25. The teams that make up the matrix structure are called __________ teams. a) matrix b) cross-functional c) sales d) vertical Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

26. Who is responsible for a cross-functional team member’s performance appraisal in a matrix structure? a) The function manager b) The project manager c) Both the functional and project manager d) The general manager Ans: c Bloom’s: Knowledge Level: Difficult Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

27. ABC, Inc. uses information technology to link with outside suppliers and service contractors. ABC is said to be using a __________ structure. a) cross-functional b) matrix c) network d) horizontal Ans: c Bloom’s: Application Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

28. ABC and XYZ, two organizations in the same industry, have come together to pursue areas of mutual interest. This refers to a(n): a) unethical venture. b) acquisition. c) corporate takeover. d) strategic alliance.

Ans: d Bloom’s: Application Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

29. Which of these represent a valued advantage of a network structure? a) An easy switch to this structure from any other type b) Simplicity of operating the structures c) Control over each piece of the system d) Lower costs and flexibility Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

30. What type of organization uses information technology to operate as a shifting form of alliances? a) Functional organization b) Matrix organization c) Virtual organization d) Divisional organization Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

31. Which of the following is needed for a virtual structure? a) Functional management b) Cross-functional teams c) Information technology d) Large projects Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

32. __________ is the process of configuring organizations to meet environmental challenges. a) Centralization b) Decentralization c) Organizational design d) Strategic planning Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming flatter, with fewer levels of management.

33. Span of control is: a) The power a manager has over all employees. b) The number of employees directly reporting to a manager. c) The area in which a manager supervises. d) The number of top level managers a middle manager must report to.

Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming flatter, with fewer levels of management.

34. Remote Servicing, Inc. (RSI) can be described as a flat organization. Managers at RSI would have a __________ span of control a) tall b) flat c) wide d) narrow Ans: c Bloom’s: Application Level: Difficult Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming flatter, with fewer levels of management.

35. Top management has the power to make most of the important decisions in a ______ organization. a) centralized b) flat c) decentralized d) wide Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are increasing decentralization.

36. Delegation is: a) telling employees how to do their work. b) when managers give employees promotions. c) the process of entrusting work to others. d) showing favoritism toward certain employees.

Ans: C Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are increasing delegation and empowerment.

37. A classical management principle that says authority should equal responsibility refers to which of the following? a) Delegation b) Centralization c) Empowerment d) Organizational Design Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are increasing delegation and empowerment.

38. A manager from LMT Corporation allows her employees to do their jobs as they see fit. This may be due to: a) no span of control. b) high centralization. c) empowerment. d) wide organizational design.

Ans: c Bloom’s: Application Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are increasing delegation and empowerment.

39. In creating an empowering climate, a manager should avoid: a) allowing employees to make decisions themselves. b) taking suggestions and ideas from subordinates. c) giving workers a chance to take the initiative in solving problems. d) closely supervising and regulating the work process.

Ans: d Bloom’s: Comprehension Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are increasing delegation and empowerment.

40. A(n) __________ emphasizes formal authority, rules, order, fairness, and efficiency. a) organic organization b) horizontal structure c) decentralized organization d) bureaucratic organization Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

41. The following type of organization is bureaucratic and has a vertical structure: a) Organic b) Mechanistic c) Matrix d) Empowered Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

42. Organizations that are most likely to have centralized management are: a) Empowered organizations. b) Organic organizations. c) Mechanistic organizations. d) Matrix organizations.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

43. __________ organizations are adaptive with a horizontal structure. a) Classical

b) Mechanistic c) Bureaucracies d) Organic Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

44. A(n) _____________ organization and a(n) ___________ organization are very similar. a) Horizontal, adaptive. b) Organic, mechanistic. c) Adaptive, bureaucratic. d) Mechanistic, bureaucratic.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

45. Empowered cross functional teams are most likely to be found in a(n) __________ organization. a) functional b) vertical c) organic d) bureaucratic Ans: c Bloom’s: Analysis Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

46. __________ allow(s) a worker to complete a full-time job in less than five days. a) Flexible working hours b) A compressed workweek c) Job sharing

d) Telecommuting Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are using more alternative work schedules.

47. At AZN Media, Inc., each job is split between at least two people. This is an example of: a) Job enlargement b) Job enrichment c) Job sharing d) Teamwork Ans: c Bloom’s: Application Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are using more alternative work schedules.

True/False

48. Research finds that it is easier to create high-performing organizations since they do not require any resources.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizing is one of the management functions.

49. Georgia is both the Chairman of the Board and CEO of GMA, Inc. Such dual role has a potential to weaken the corporate governance at her company.

Ans: True Bloom’s: Application Level: Difficult Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization charts describe the formal structures of organizations.

50. Controlling arranges people and resources to work toward a goal.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizing is one of the management functions.

51. The organizational Chart describes the mission with a company.

Ans: False.

Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization charts describe the formal structures of organizations.

52. The informal structure consists of unofficial groups that form a shadow organization.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizations also operate with informal structures.

53. The Society for Human Resource Management reported that after the economy suffered a round of massive layoffs, human resource professionals observed in their firms a decrease in workplace eavesdropping as well as a decrease in gossip and rumors about downsizing.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Informal structures have good points and bad points.

54. One of the problems with a functional structure is communication between functional groups.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

55. The essence of the functional chimney problem is that the subunits operate as if they are independent from, or in competition with all of the other subunits in the organization.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

56. Mars Inc., the world’s largest candy company, suffers from the functional chimneys problem.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

57. The four types of divisional structures are product, geographical, customer, and functional.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers or locations.

58. A matrix organization combines a functional structure and a division structure.

Ans: True Bloom’s: Knowledge

Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

59. A cross-functional team structure has no project manager.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

60. The key features of a network structure are a minimal core staff, with as much of the support activity contracted out as possible.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

61. In most organizations, teamwork is something that can be accomplished quickly.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Team structures use many permanent and temporary teams.

62. The span of control indicates the number of employees directly reporting to a superior.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming flatter, with fewer levels of management.

63. A basic principal of management is that, “When delegating, authority should equal responsibility.”

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are increasing delegation and empowerment.

64. Mechanistic structures are most like organic designs.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

65. A learning organization is most likely the outcome of an organic design.

Ans: True Bloom’s: Comprehension Level: Difficult Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

66. Flexible time means that you can work whenever you want.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are using more alternative work schedules.

67. Telecommuting is likely to become more popular in the future.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are using more alternative work schedules.

Fill-in-the-Blank

68. __________ is the process of arranging people and resources to work together to accomplish goals.

Ans: Organizing Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizing is one of the management functions.

69. A(n) __________ is a diagram of positions and reporting relationships within an organization.

Ans: organization chart Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization charts describe the formal structure of organizations.

70. __________ identifies the informal structure and their embedded social relationships that are active in an organization.

Ans: Social network analysis Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizations also operate with informal structures.

71. Separating people to perform different tasks that aggregate into a unified whole is known as __________.

Ans: division of labor Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization charts describe the formal structure of organizations.

72. The “shadow” organization that operates independently of the formal organization is known as a(n) __________ organization.

Ans: informal Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizations also operate with informal structures.

73. A significant problem with functional organizations is the lack of communication between the various functional areas. This problem is known as the functional __________ problem.

Ans: chimneys Bloom’s: Comprehension Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

74. The structural approach that attempts to generate the advantages of both the functional and divisional forms is the __________ structure.

Ans: matrix Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

75. __________ teams combine members from different departments to work on a common task.

Ans: Cross-functional Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

76. __________ groups together jobs and activities that serve the same customers or clients.

Ans: Customer structures Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

77. Network structures rely upon __________ to facilitate cooperation with other firms in the pursuit of business activities of mutual interest.

Ans: strategic alliances Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

78. Network strategies implemented through the use of information technologies create __________.

Ans: virtual organizations Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

79. A(n) __________ allows a worker to complete a full-time job in less than five days.

Ans: compressed workweek Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are using more alternative work schedules.

Essay

80. Why is the organizational structure so important?

Ans: Most of us like to be organized. We tend to get uncomfortable and anxious when things are disorganized. People in organizations need answers to questions such as: “Where do I fit in?,” “How does my work relate to that of others?,” “Who runs things?,” Since, structure determines how the work is divided, who does what, and how tasks and people are related, it is the essential vehicle used in the implementation of organizational strategy and plans.

Bloom’s: Analysis Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizing is one of the management functions.

81. Why are network structures, given their efficiencies, not more prevalent?

Ans: Managing a network of outside contractors can be a very difficult communication task. Furthermore, there is less control over the contractors than in a traditional structure.

This lack of control can be critical in crisis situations.

Bloom’s: Analysis Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

82. Describe a functional structure and some of its important advantages and disadvantages.

Ans: A functional structure is one that groups employees by their skills and the nature of their work or the functions that they perform. Some examples of functional departments are marketing, finance and engineering.

The advantages of a functional structure are economies of scale, high level of skill in each functional area, on the job training, and a clear career path in each functional area.

The primary disadvantage is a lack of communication across functional areas, often referred to as the functional chimney problem. Another significant disadvantage is negative competition amongst the department managers as they struggle for power. This can result in the various departments building fiefdoms or silos and isolating themselves from the other departments.

Bloom’s: Analysis Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

83. Describe a division structure and the various substructures within it.

Ans: A division structure groups people working in the same product line or geographical area or with similar customers. Divisions usually are formed as corporations grow in order to continue to provide a strong customer focus. The three most common division structures are: Product – The focus here is on similar products or services. The advantage is a high level of product knowledge within the organization.

Geographical – The focus is on geographical territories. The advantage is knowledge of the local culture.

Customer – The focus is on key accounts. The advantage is a thorough knowledge of the customer’s needs and operations.

There is a fourth structure called process, but it focuses on common processes used by the manufacturer and is not as customer driven.

Bloom’s: Analysis Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

84. What is a matrix structure? What are the two structures from which it is formed?

What are the advantages and disadvantages of this type of structure?

Ans: A matrix structure is just what the name implies. It is a matrix of a functional structure and a divisional structure. The x-axis consists of the functional departments, while the y-axis consists of project managers. The matrix is filled in by functional personnel who are assigned to both functional managers and project managers. These groups make up what are called cross functional teams.

The main advantage of the matrix structure is that the communication barriers that exist in a functional organization, often called the functional chimney problem, are eliminated by the cross functional teams. This allows for open communication and decision making at the lowest possible level.

The main disadvantage of the matrix structure is that the team members report to two managers, a functional manager and a project manager, and may get caught in a squeeze if the two managers are in conflict with each other. The solution to this problem is a strong general manager who can resolve the conflict.

Bloom’s: Analysis Level: Difficult Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

File: mod09, Chapter 9: Organizational Cultures, Innovation, and Change

Multiple Choice

1. A system of shared beliefs and values that guides organizational behavior is called organizational ________. a) policy b) rules c) design d) culture Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture is the personality of the organization.

2. Which of these is NOT true about Organizational culture? a) It describes the structure of the organization. b) It is a system of shared beliefs and values. c) It represents the personality of the organization. d) It represents the “way we do things around here.”

Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture is the personality of the organization.

3. In an organization, language and other symbols conveying core values are known as: a) rites and rituals. b) symbols. c) heroes. d) stories.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The observable culture is what you see and hear as an employee or customer.

4. Strong organizational cultures contribute to performance in all of the following ways EXCEPT: a) they are high-performance oriented. b) they focus on getting the job done no matter how. c) they provide a clear vision. d) they discourage dysfunctional work behaviors and encourage positive ones.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

5. What a person sees or hears when he/she is walking around in an organization is part of the organization’s a) observable culture. b) goals. c) strategy. d) employee training.

Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The observable culture is what you see and hear as an employee or customer.

6. Many West coast companies do not have private offices or parking spaces for their senior managers. This is an example of an organization’s __________. a) corporate policy b) employee training c) performance appraisal d) observable culture Ans: d Bloom’s: Application Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The observable culture is what you see and hear as an employee or customer.

7. The process through which new members learn the culture of an organization is called a) structure. b) policy. c) socialization. d) employee development.

Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

8. ABC Manufacturing on a monthly basis holds an achievement award programs to recognize the most productive employees each month. These are __________ that contribute to a ABC’s core values. a) stories b) heroes c) rites and rituals d) symbols Ans: c Bloom’s: Application Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The observable culture is what you see and hear as an employee or customer.

9. At Callaway Golf, which of the following would NOT be a part of the observable culture? a) The way people dress b) The layout of the offices c) The lack of executive parking spaces d) The organizational beliefs Ans: d Bloom’s: Application Level: Medium

Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The observable culture is what you see and hear as an employee or customer.

10. Which of the following represent a deeper level of organizational culture that consists of the beliefs and values shared by the organization members? a) Bureaucratic b) Core c) Organic d) Mechanistic Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

11. The beliefs shared by organization’s members are called __________. a) corporate doctrine b) management directive c) corporate requests d) core values Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

12. Merck—“highest level of scientific excellence,” Whole Foods—“Creating ongoing win-win partnerships with our suppliers,” Fedex---“We are honest, ethical, and do the right thing.” These are examples of __________. a) process innovations b) value-based management c) values statements d) mission statements Ans: c

Bloom’s: Comprehension Level: Difficult Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

13. Organizations that actively develop, communicate, and enact shared values are practicing __________. a) functional management b) value-based management c) employee manipulation d) bureaucratic control Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Value-based management supports a strong organizational culture.

14. Which of these indicate the true values or core culture of an organization? a) Speeches by the top managers b) The mission statement of the organization c) The actions of the top managers d) The handout about the organizations culture and values Ans: c Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

15. Which of these refers to the practices that create meaning and shared community among employees? a) Functional management b) Workplace spirituality c) Employee manipulation d) Bureaucratic control Ans: b Bloom’s: Knowledge

Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

16. A manager who uses symbols to establish and maintain a desired organizational culture is a(n) __________. a) autocratic manager b) symbolic leader c) benevolent leader d) participative manager Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

17. The process of taking a new idea and putting it into practice is called __________. a) product b) innovation c) creativity d) brainstorming Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

18. Improving the way things are done is called __________. a) product innovation b) process innovation c) creativity d) commercializing innovation Ans: b Bloom’s: Knowledge Level: Easy

Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

19. Product innovation is the: a) development and introduction of new or improved goods and services. b) process of selling new or improved goods or services. c) virtual processing of new or improved goods and services. d) commercializing of new or improved goods or services Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

20. At ABC Manufacturing, the process of turning ideas into products/methods that can increase profits would be called which of these? a) Virtual processing b) Organizational development c) Business model innovation d) Transformational change Ans: c Bloom’s: Comprehension Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

21. Netflix turned movie rental into a subscription business; eBay earns revenues from the users of its online marketplace; Google thrives on advertising revenues driven by ever-expanding Web technologies. These are all examples of __________ innovations. a) process b) virtual c) business model d) green

Ans: c Bloom’s: Application Level: Difficult Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

22. Vodafone eliminated over 13,500 flights by replacing traveling with videoconferencing. By doing this Vodafone cut about 5,000 tons of carbon emissions.

This example is considered what type of innovation? a) Technology innovation b) Product innovation c) Model innovation d) Green innovation Ans: d Bloom’s: Application Level: Difficult Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Green innovations pursue and support the goals of sustainability.

23. Gene is always pursuing creative and innovative ways to solve social problems. Gene is participating in which of the following? a) Social responsibility b) Social entrepreneurship c) Green innovation d) Commercializing innovation Ans: b Bloom’s: Application Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Social innovations seek solutions to important societal problems.

24. The four steps in commercializing innovation are idea generation, initial experimentation, __________, and final application. a) product introduction b) process improvement c) process development d) feasibility experimentation Ans: d

Bloom’s: Knowledge Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Commercializing innovation turns new ideas into salable products.

25. __________ innovation recognizes the potential for valuable innovations to be launched from lower organizational levels and diverse locations, including emerging markets. a) Reverse b) Forward c) Commercializing d) Virtual Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Commercializing innovation turns new ideas into salable products.

26. Which of these describes the special creative units set free from the normal organizational structure for the purpose of innovation? a) Divisions b) Skunkworks c) Research labs d) Business units Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Innovative organizations share many common characteristics.

27. Michelle is a manager at MDH Corporation. She is constantly trying to alter the behavior of her employees. Michelle would be considered a(n) _______ leader. a) top down b) incremental c) bottom up d) change Ans: d Bloom’s: Application Level: Easy

Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

28. If ABC, Inc. is focusing on a major and comprehensive redirection of the company, it is called a(n) ___________ change. a) innovative b) planned c) transformational d) incremental Ans: c Bloom’s: Application Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

29. Nicole is a manager at N.E.W. Corporation. In order to improve performance, she bends and adjusts the existing ways of performance improvement techniques. Nicole is using what type of change? a) Transactional b) Incremental c) Bottom up d) Transformational Ans: b Bloom’s: Application Level: Difficult Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

30. A leader must do all of the following in order to lead transformational change EXCEPT: a) Establish a sense of urgency b) Empower others c) Create and communicate a change vision d) Follow others Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

31. An individual is a “status quo” manager when they exhibit any of the following traits EXCEPT which one? a) Making things happen b) Being bothered by uncertainty c) Preferring predictability d) Appearing threatened by change Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

32. All of the following are true of major transformational change efforts EXCEPT: a) they involve radical changes. b) they result in redirection of the organization. c) such efforts are intense and highly stressful. d) overall, they are generally successful.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

33. According to Lewin, the correct order in the steps of change is: a) freezing, refreezing, and changing. b) unfreezing, changing, and refreezing. c) refreezing, changing, and unfreezing. d) changing, unfreezing, and refreezing.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.

34. According to Lewin, which of these steps prepares a system for change? a) Refreezing b) Unfreezing c) Freezing d) Thawing Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.

35. Which phase of planned change, according to Lewin, focuses on stabilizing the change with rewards, positive reinforcement, and resource support? a) Thawing b) Refreezing c) Freezing d) Unfreezing Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned changes are unfreezing, changing, and refreezing. refreezing.

36. A(n) __________ strategy pursues change through formal authority and the use of rewards or punishments. a) rational persuasion b) shared power c) force-coercion d) irrational Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

37. A(n) __________ strategy creates change through rational persuasion and empirical argument. a) rational persuasion b) shared power c) force-coercion d) empirical force Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

38. A(n) __________ strategy pursues change by participation in assessing change needs, values, and goals. a) rational persuasion b) shared power c) force-coercion d) empirical force Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

39. Which power base is most closely linked to the “shared power” change strategy? a) Legitimate b) Referent c) Coercive d) Reward Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

40. The rational persuasion strategy is most closely linked to the __________ power base. a) legitimate b) reward c) coercive d) expert Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

41. The “forced coercion” change strategy is most closely linked to the __________ power base. a) legitimate b) traditional c) expert d) referent Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

42. Which of the following is NOT a source of resistance to change? a) Past successful change b) Fear of the unknown c) Loss of control d) Loss of face Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Change leaders identify and deal positively with resistance to change.

True/False

43. One firm now considered a benchmark for its special culture is Zappos.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture is the personality of the organization.

44. Given the impossibility of actually “seeing” assumptions and beliefs, it is not possible to actually see the culture of an organization; it is just something that you feel.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The observable culture is what you see and hear as an employee or customer.

45. Weak cultures have been identified as a problem for organizational success.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

46. Research finds that if a company employs the right people, a strong corporate culture will just happen.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

47. Core cultures are found in the underlying values of the organization.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

48. Both Baby Boomers and Gen Ys rate flexible work as important.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

49. One of the challenges for managers is that values statements are easy to develop and write, but hard to live up to.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Value-based management supports a strong organizational culture.

50. A person’s Facebook profile ought to be unaffected by his/her organizational culture.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Value-based management supports a strong organizational culture.

51. Fortunately, strong corporate cultures are easy to develop and quick to implement.

Ans: False Bloom’s: Knowledge Level: Easy

Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

52. Commercializing is the process of taking an idea and putting it into action.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

53. Using robots to improve manufacturing efficiency is an example of product innovation.

Ans: False Bloom’s: Comprehension Level: Difficult Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

54. Creating innovative ways to solve pressing social problems is called social engineering.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Social innovations seek solutions to important societal problems.

55. Once an idea is generated, the next step is commercialization.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Commercializing innovation turns new ideas into salable products.

56. Highly innovative companies include innovation in their strategy.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Innovative organizations share many common characteristics.

57. Special creative units set free from the normal organizational structure are called advanced development teams.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Innovative organizations share many common characteristics.

58. In highly innovative organizations, staffing supports innovation.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Innovative organizations share many common characteristics.

59. Transformational change is more important to an organization than incremental change.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

60. The “burning bridge” phase is another way to see Lewin’s “unfreezing,” as it is an attempt to get people to see that they have to “jump” into the change.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.

61. In Lewin’s third phase of planned change, the change leader’s task is to implement change.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.

62. In order for the rational persuasion strategy to work, the leader must have expert power in the eyes of the followers.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

63. When dealing with resistance to change, managers may use facilitation and support to provide encouragement and training.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Change leaders identify and deal positively with resistance to change.

Fill-in-the-Blank

64. __________ is a system of shared meanings, beliefs, and values that develop in an organization and guides the behavior of its members.

Ans: Organizational (or corporate) culture Bloom’s: Knowledge

Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture is the personality of the organization.

65. __________ is the process through which new members learn the culture of an organization.

Ans: Socialization Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

66. The observable culture is visible via the __________ and __________ shared among the organizational members on a regular basis.

Ans: Two of the following – stories, heroes, symbols, or rites/rituals Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The observable culture is what you see and hear as an employee or customer.

67. The underlying values and assumptions that support the observable culture are part of the __________ culture.

Ans: core Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

68. __________ management involves operating with a commitment to actively help develop, communicate, and represent the shared values within an organization.

Ans: Value-based Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Value-based management supports a strong organizational culture.

69. Practices that create meaning and shared community among organizational members are known as __________.

Ans: workplace spirituality Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Value-based management supports a strong organizational culture.

70. The overall process of developing new ideas and putting them into practice is known as __________.

Ans: innovation Bloom’s: Knowledge Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

71. __________ is the process of turning new ideas into salable products.

Ans: Commercializing innovation Bloom’s: Knowledge Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Commercializing innovation turns new ideas into salable products.

72. __________ are individuals who take on the responsibility for changing the existing pattern of behavior in a system.

Ans: Change leaders (or agents) Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

73. Change that seeks to tweak or modify the existing system is called __________ change.

Ans: incremental Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

75. In the force-coercion change strategy, the __________ tactic involves working indirectly to gain special advantage over other people in order to force change.

Ans: political maneuvering Bloom’s: Knowledge Level: Difficult Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

76. In the __________ change strategy, change is pursued through empirical data and rational judgment.

Ans: rational persuasion Bloom’s: Knowledge Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

Essay

77. Define organizational culture, observable culture, core culture, and the factors that affect each of them.

Ans: Organizational culture is a system of shared beliefs and values that guide the members of an organization. The culture of an organization is influenced by the core culture and the observable culture, consisting of what you would see and hear if you were walking around an organization. Some examples of the observable culture are employee conversation and behavior, office layout, and how you are treated as a customer. The core culture is found in the underlying values of the organization. Factors influencing the core culture are stories, rites and rituals, symbols, and heroes.

Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture is the personality of the organization.

Section Reference: The observable culture is what you see and hear as an employee or customer.

Section Reference: The core culture is found in the underlying values of the organization.

78. Define innovation, and describe the three types of innovation.

Ans: Innovation is the process of taking a new idea and putting it into practice. The three types of innovation are process innovation, product innovation, and business model innovation. Process innovation is improving the way things are done. Product innovation is the development and introduction of new or improved goods and services. Business model innovation is finding new ways of making money for the firm.

Bloom’s: Comprehension Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

79. What does it mean to commercialize innovation? Briefly describe the four steps of this process.

Ans: Commercializing innovation is the process of turning new ideas into salable products. One step of this process is idea creation, which involves discovering a potential product or ways to modify an existing one. Another step is initial experimentation, which involves sharing the idea with others and testing it in prototype form. Feasibility determination is the next step, whereby the practicality and financial viability of the new product is tested. In the next step, final application, the product is commercialized for sale to customers or clients.

Bloom’s: Evaluation Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Commercializing innovation turns new ideas into salable products.

80. Name and explain Kurt Lewin’s three phases of planned change.

Ans: The three phases of planned change are unfreezing, changing, and refreezing.

Unfreezing is the first step in the process. It is preparing the organization for change by convincing others that there is a need for change.

Changing is the second step in the process. This is the actual implementation of the change.

Refreezing is the final step in the process. The intent of refreezing is to stabilize the new organization.

Bloom’s: Comprehension Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned changes are unfreezing, changing, and refreezing.

81. Name and define the three types of change strategies along with their corresponding power bases.

Ans: The three types of change strategies are force-coercion, rational persuasion, and shared power.

Force-coercion is a strategy that pursues change through formal authority and the use of rewards or punishments. It operates from a legitimate (position) power base.

Rational persuasion is a strategy that creates change through rational persuasion and empirical argument. It operates from an expertise or knowledge power base.

Shared power is a strategy that develops support for change through personal values and commitments. It operates from a referent power base.

Bloom’s: Comprehension Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

File: mod10, Chapter 10: Human Resource Management

Multiple Choice

1. __________ is the process of attracting, developing, and maintaining a high quality workforce. a) Equal opportunity b) Human resource management (HRM) c) General management d) Outsourcing Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Human resource management attracts, develops, and maintains a talented workforce.

2. Which of these is NOT a task of the Human Resources department? a) Supervising a quality workforce b) Attracting a quality workforce c) Developing a quality workforce d) Maintaining a quality workforce Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Human resource management attracts, develops, and maintains a talented workforce.

3. Which of these refers to refusing to hire or promote someone for non-job related reasons? a) Prejudice b) Bias c) Discrimination

d) Right to work Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

4. The right to employment and advancement without regard to race, sex, color, religion, or national origin is called a) equal employment opportunity. b) discrimination. c) affirmative action. d) human resource management.

Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

5. Job discrimination, denial based on non-performance related issues, occurs when an organization denies someone all of the following EXCEPT: a) Employment. b) A job assignment. c) An advancement opportunity. d) Vacation days Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

6. All of the following categories are protected by Title VII of the 1964 Civil Rights Act (CRA) EXCEPT: a) Religion

b) Race c) Color d) Age Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

7. All of the following are covered by the Equal Employment Opportunity (EEO) Act EXCEPT: a) protection of the right to gain/keep employment based upon ability and performance. b) equal pay for men and women. c) discrimination of persons over 40. d) guarantee zero discrimination in the workplace.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

8. Which of these is an effort on the part of the federal government, to ensure equal employment for members of protected groups, by setting hiring quotas based on the demographics of relevant markets? a) Discrimination b) Right to work c) Affirmative action d) Equal employment opportunity Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

9. Employment criteria justified by capacity to perform a job are called a) discriminations. b) affirmative actions. c) bona fide occupational qualifications. d) career planning.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

10. Which of these is NOT required by the affirmative action process? a) Hiring of people in underrepresented classes, regardless of qualifications b) Survey of the relevant labor market to determine its demographics c) Comparison of the current company workforce with the available labor market d) Analysis of the demographics of the current company workforce Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

11. In future years, age discrimination is predicted to a) decrease. b) increase. c) remain stable. d) be eliminated.

Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

12. All of the following would be legitimate reasons for not hiring someone EXCEPT: a) a special pilot’s license to fly for major airlines. b) a minimum weight requirement to serve as a restaurant chef. c) passing a criminal background check to be an elementary school teacher. d) a medical license to be a doctor.

Ans: b Bloom’s: Application Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

13. Which of the following is NOT protected by federal law? a) An HIV job applicant b) A 40-year-old worker c) A job applicant who drinks d) A pregnant worker Ans: c Bloom’s: Comprehension Level: Difficult Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

14. Which of these was the very first bill signed by President Obama, which expanded workers’ rights to sue employers on equal pay issue? a) Pregnancy Discrimination Pay for Performance Act b) Lilly Ledbetter Fair Pay Act c) Age Discrimination Wage Restriction Act d) Workplace Privacy Affirmative Action Pay Act Ans: b Bloom’s: Knowledge Level: Difficult Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

15. Which of the following U.S. laws protects female workers from discrimination because of pregnancy? a) The Equal Pay Act of 1963 b) The Maternity Leave Act of 2005 c) The Pregnancy Discrimination Act of 1978 d) The Family and Medical Leave Act of 1993 Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

16. Privacy at work is a right that applies to which of these? a) Only managers b) Only non-managers c) All employees d) Only top performing employees Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

17. Which of these is NOT true regarding privacy in the workplace? a) Technology can allow employers to monitor emails from company computers. b) Technology can allow employers to identify who is receiving phone calls. c) Technology can allow employers to track internet searches done on company equipment. d) Technology can allow employers to spy on employees to decide who will get a promotion.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

18. According to research, about what percent of age discrimination suits result in some financial settlement in favor of the person filing the claim? a) 80 b) 20 c) 50 d) 35 Ans: b Bloom’s: Knowledge Level: Difficult Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

19. People who are hired on temporary contracts and are not a part of the organization’s permanent workforce are called __________. a) selective workers b) variable time employees c) flex time workers d) independent contractors Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Organizations are using more independent contractors and part-time workers.

20. Which of these represents a benefit that an organization gets by using independent contractors? Independent contractors a) are available at minimum wage. b) get no benefits. c) are better workers. d) are always available.

Ans: b

Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Organizations are using more independent contractors and part-time workers.

21. Which of these is called a process when companies try to attract a qualified pool of applicants? a) Planning b) Screening c) Selection d) Recruiting Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

22. __________ is the match of individual values, interests, and behaviors with the organizational culture. a) Person-job fit b) Person-organization fit c) Recruitment d) Job satisfaction Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

23. Which of the following is NOT good advice in preparing for a telephone interview? a) Study the organization ahead and match your strengths to it b) Plan to take the call in a quiet, private location c) Practice your voice tone and modulation to set a good first impression d) Don’t worry about how you are dressed Ans: d Bloom’s: Knowledge

Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

24. During selection, the process that attempts to reveal both the good and bad points of the job is called: a) an in-depth interview. b) recruitment. c) a realistic job preview. d) orientation.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

25. The process of choosing whom to hire from a pool of qualified candidates is called __________. a) assessing b) recruiting c) selection d) reviewing Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

26. In designing an employment test, ensuring that the results are an accurate predictor of future job performance means that the test instrument is __________. a) valid b) reliable c) realistic d) socialized Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

27. An assessment center evaluates a candidate’s: a) professionalism. b) socialization. c) job potential. d) behavior.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

28. The process of evaluating a candidate in an actual work situation is called __________. a) reality b) work sampling c) coaching d) socialization Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

29. Allison, a long-time employee at AIM Corporation is helping William, a new employee; learn the culture of the organization. Allison is using the __________ process. a) Assessment b) Socialization c) Affirmative action d) Unionization Ans: b Bloom’s: Application Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Socialization and orientation integrate new employees into the organization.

30. Once a candidate is hired, __________ familiarizes the new employee with jobs, coworkers, and organizational policies and services. a) documentation b) socialization c) orientation d) coaching Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Socialization and orientation integrate new employees into the organization.

31. Thomas is a new employee at Town Realty. Andrew, an experienced employee, has been assigned to Thomas to offer him performance advice. This is called: a) On the job training b) Orientation c) Work sampling d) Coaching Ans: d Bloom’s: Application Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Training continually develops employee skills and capabilities.

32. Assigning an early career employee as a protégé to a more senior employee for the purpose of professional advice and career guidance is called __________. a) coaching b) mentoring c) assessing d) socialization Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Training continually develops employee skills and capabilities.

33. Performance appraisal is the process of formally evaluating an employee’s performance for the purpose of offering __________ to employees. a) motivation b) promotions c) feedback d) mentoring Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

34. Which appraisal system includes descriptions of actual behaviors to exemplify the various levels of performance? a) Graphic rating scale b) Paired comparison c) Critical-incident technique d) Behaviorally anchored rating scale Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

35. A performance appraisal method that uses a log of the employee’s effective and ineffective job behaviors is called a__________. a) behaviorally anchored rating scale b) critical-incident technique c) forced distribution method d) graphic rating scale Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

36. A performance appraisal method that formally gathers input from the many people that work with, and depends on the person being appraised is called a __________. a) behaviorally anchored rating scale b) critical-incident technique c) forced distribution method d) 360feedback Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

37. A performance appraisal method that rates and ranks employees relative to each other is called a__________. a) behaviorally anchored rating scale b) critical-incident technique c) multiperson comparison d) graphic rating scale Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

38. Which of these is called a process of managing how an employee grows and progresses in responsibility from one point to another? a) Career planning b) Employee management c) Career development d) Multiperson comparison Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Retention and career development provide career paths.

39. The process of managing career goals and individual capabilities with opportunities for their fulfillment is called __________. a) career planning b) employee management c) career development d) multiperson comparison Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Retention and career development provide career paths.

40. __________ involves balancing career demands with personal and family needs. a) Work-life balance b) Employee management c) Career development d) Multiperson comparison Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Today’s lifestyles increase demands for flexibility and work-life balance.

41. A __________ plan awards regular pay increases in proportion to performance. a) stock option b) bonus plan c) merit pay d) profit sharing Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Compensation plans influence employee recruitment and retention.

42. Which plan allows employees to share in cost savings or productivity gains realized by their efforts? a) Stock option b) Bonus plan

c) Merit d) Gain sharing Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Compensation plans influence employee recruitment and retention.

43. Which of these represents the collective behalf of workers to employers? a) Trade association b) Employer representative c) Employee organization d) Labor union Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

44. Which of the following is NOT true of labor unions? They a) are made up of workers. b) act as a “collective” voice for the workers. c) are run by the government agency. d) bargain for the workers.

Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

45. __________ programs allow choice to personalize benefits within a set dollar allowance. a) Family friendly b) Flexible benefits c) Employee assistance d) Collective bargaining

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Fringe benefits are an important part of employee compensation packages.

46. The process of negotiating, administering, and interpreting a contract is called ___________. a) legal administration b) collective bargaining c) unionizing d) union manipulation Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

True/False

47. Performance management aligns human capital with organizational strategies.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Strategic human resource management aligns human capital with organizational strategies.

48. Human capital is the personal value of an employee and is not related to economic value.

Ans: False Bloom’s: Knowledge

Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Strategic human resource management aligns human capital with organizational strategies.

49. The labor union grants up to 12 weeks of unpaid leave for qualifying actions and protects the individual’s employment status.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

50. Affirmative action attempts to enforce equal employment opportunity legislation.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

51. It is legal for men to make twice as much as women for doing the same job.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

52. Employees right to privacy of communications inside the workplace is guaranteed by civil rights legislation.

Ans: False Bloom’s: Knowledge

Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

53. Marketing surveys show that women influence only 20% of car purchases and that most men prefer dealing with a female salesperson.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Retention and career development provide career paths.

54. Realistic job interviewers “sell” the positive features of a job in order to find potential employees.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applications.

55. Reliability of employee testing means that the scores on a selection device demonstrate links with future job performance.

Ans: False Bloom’s: Knowledge Level: Difficult Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

56. The interview process must be carefully managed because it can be corrupted in a number of ways that can result in missing good candidates or hiring poor candidates.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

57. Many employers talk about the “value” they place on their workers, but a good test is whether they invest in employee training.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Training continually develops employee skills and capabilities.

58. In order to avoid the problem of managers ranking all their employees at about the same level, companies should use graphic rating scales.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

59. In order to get performance feedback from more sources than just the employee’s supervisor, a program of 360 feedback can be implemented.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

60. In the dynamic workplace environment of today, more and more of the responsibility for career planning is falling on the individual employees to do their own.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Retention and career development provide career paths.

61. Workers who have more flexibility with start and stop times are less productive than employees with set start and stop times.

Ans: False

Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Today’s lifestyle increases demands for flexibility and work-life balance.

62. Although marked by a troubled past, the trend in modern labor-management relations is toward more cooperation than adversity.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

Fill-in-the-Blank

63. __________ means behaving with internalized commitments to special standards determined by personal values, academic degrees, professional associations, and company culture and practices.

Ans: Professionalism Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Management Live.

64. Criteria for hiring that are linked to a person’s ability to person a job are called __________ qualifications.

Ans: bona fide occupational Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

65. __________ discrimination penalizes a woman in a job or as a job applicant for being pregnant.

Ans: Pregnancy Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

66. __________ is the match of individual skills, interests, and personal characteristics with the job.

Ans: Person-job fit Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

67. __________ requires equal pay for women and men doing equal work.

Ans: The Equal Pay Act of 1963 Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

68. __________ are employees who quality for regular employment but are denied benefits or pensions.

Ans: Contingency workers Bloom’s: Knowledge Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Organizations are using more independent contractors and part-time workers.

69. __________ involves making a choice to hire from the pool of applicants for a given job.

Ans: Selection Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

70. __________ is the process of assigning a new or early-career employee to a senior manager for guidance and development.

Ans: Mentoring Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Training continually develops employee skills and capabilities.

71. The purpose of performance appraisals are both to __________ and document performance, as well as initiate a process of __________.

Ans: evaluate, development Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

72. In __________, younger and newly hired employees mentor senior executives, often on latest developments with digital technologies.

Ans: reverse mentoring Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Training continually develops employee skills and capabilities.

73. The __________ technique of performance evaluation requires the maintenance of a log to capture the employee’s effective and ineffective behaviors during the evaluation period.

Ans: critical-incident Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

74. A multiperson comparison method that requires evaluators to place each employee into a frequency distribution with several fixed performance classifications is called a(n) __________.

Ans: forced distribution Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

75. The text argues that a well-managed career should include a carefully thought out __________, as well as being guided by an eye for __________.

Ans: career plan, opportunity Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Retention and career development provide career paths.

76. __________ plans provide one-time payments based on performance accomplishments.

Ans: Bonus pay Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Compensation plans influence employee recruitment and retention.

77. The process involving management and unions working together to negotiate, administer, and interpret labor contracts is called __________.

Ans: collective bargaining Bloom’s: Knowledge Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

Essay

78. Why is it important for managers to avoid discrimination in the workplace?

Ans: Of course, discrimination avoidance is called for in order to comply with the law, but this is really a lesser reason (and should not result in full credit). Job discrimination deprives the organization of the talent of otherwise qualified individuals, and these practices can destroy employee morale and motivation. Organizations will perform better when they treat their members better.

Bloom’s: Analysis Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Human resource management attracts, develops, and maintains a talented workforce.

Section Reference: Strategic human resource management aligns human capital with organizational strategies.

Section Reference: Government legislation protects against employment discrimination.

79. Based upon your studies to this point in the text, give an organizational reason for the decline in unions in the private sector and their growth in the public sector.

Ans: The basis for a union is a contract, which is very structured, hierarchical, and rulebound. This generally fits best into a mechanistic system of organization. In today’s competitive environment, it is organic structures that prevail, not mechanistic ones. Thus, unions do not fit well in the private sector. However, government is still largely bureaucratic and mechanistic. Union systems fit very well, therefore, in the public sector.

Bloom’s: Comprehension Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

80. List the three basic responsibilities of human resource management and the activities necessary to achieve them.

Ans: The three objectives of human resource management are to attract a quality workforce; develop a quality workforce and maintain a quality workforce.

The activities necessary to attract a quality workforce include planning, recruiting, and selecting.

The activities necessary to develop a quality workforce include employee orientation, training, and performance appraisal.

The activities necessary to maintain a quality workforce include career development, work-life balance, compensation and benefits, retention and turnover, and labormanagement relations.

Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Human resource management attracts, develops, and maintains a talented workforce.

81. Define job discrimination, equal opportunity employment, affirmative action and the relationship between them.

Ans: Job discrimination is the act of denying a person a job or job assignment for other than job related reasons. Equal employment opportunity is the right to employment and advancement without regard to race, sex, color, religion or national origin. Affirmative action is an effort on the part of the federal government to ensure equal employment for members of protected groups by setting hiring quotas based on the demographics of relevant markets.

Recognizing that discrimination is not only morally wrong but also harmful to the nation, the government passed legislation intended to provide equal opportunity for all. To add strength to the legislation, the legislation included affirmative action.

Bloom’s: Analysis Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

82. Name and define three methods used in conducting performance appraisals.

Ans: The methods for conducting performance appraisals are graphic rating scale, behaviorally anchored rating scale, critical-incident technique, 360feedback and multiperson comparison.

Graphic rating scale uses a standard checklist or scorecard for rating an employee’s performance.

Behaviorally anchored rating scale uses specific descriptions of actual behaviors to rate various levels of performance.

Critical-incident technique uses a log of the employee’s effective and ineffective job behaviors.

360 degree feedback formally gathers inputs from the many people that work with and depend on the person being appraised.

Multiperson comparison rates and ranks employees relative to each other.

Bloom’s: Knowledge Level: Medium

Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

Package Title: Test Bank Course Title: Schermerhorn Exploring 3e Chapter Number: 11

Multiple Choice

1. _________ is the process of inspiring others to work hard to accomplish important tasks. a) Controlling b) Planning c) Leadership d) Organizing Answer: c Bloom’s: Knowledge Difficulty: Easy Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leadership is one of the four functions of management.

2. Of the four functions that make up the management process which of the following brings together the resources to turn plans into action? a) Planning b) Organizing c) Leading d) Controlling Answer: b Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leadership is one of the four functions of management.

3. Of the four functions that make up the management process, __________ sets the direction and objectives. a) planning b) organizing c) leading d) controlling Answer: a

Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leadership is one of the four functions of management.

4. The ability to get someone else to do something that you want done is called __________. a) authority b) power c) bullying d) drive Answer: b Bloom’s: Knowledge Difficulty: Easy Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use position power to achieve influence.

5. __________ power achieves influence by offering something of value. a) Legitimate b) Coercive c) Reward d) Expert Answer: c Bloom’s: Knowledge Difficulty: Easy Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use position power to achieve influence.

6. Mary’s manager has told her that if she can bring her project in on time, she will get an extra bonus of $10,000. Mary’s manager is using __________ power. a) expert b) reward c) manipulative d) referent Answer: b Bloom’s: Application Difficulty: Medium

Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use position power to achieve influence.

7. _______ power is not included with position power. a) Coercion b) Expertise c) Reward d) Legitimate Answer: b Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use position power to achieve influence.

8. The capability to punish or withhold positive outcomes as a way of influencing the behavior of other people is called __________ power. a) referent b) person c) expert d) coercive Answer: d Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use position power to achieve influence.

9. Your manager says that he will refuse your request for the weekend off to attend a concert unless you work the late shift for the rest of the week. He is using ________ power. a) legitimate b) reward c) expert d) coercive Ans: d Bloom’s: Application Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use position power to achieve influence.

10. The ability to influence the behavior of others because of a special knowledge and skill is called __________ power. a) expert b) leadership c) reward d) legitimate Answer: a Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use personal power to achieve influence.

11. Which of the following types of power is included with personal power? a) Legitimate b) Coercive c) Reward d) Referent Answer: d Bloom’s: Knowledge Difficulty: Easy Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use personal power to achieve influence.

12. . A __________ is a clear sense of the future. a) vision b) norm c) dream d) goal Answer: a Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders bring vision to leadership situations.

13. According to which of the following effective leadership traits, successful leaders enjoy influencing others to achieve shared goals?

a) Drive b) Business knowledge c) Honesty d) Motivation Answer: d Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders display different traits in the quest for leadership effectiveness.

14. . __________ style is the recurring pattern of behaviors exhibited by a leader. a) Management b) Expert c) Leadership d) Coercive Answer: c Bloom’s: Knowledge Difficulty: Easy Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

15. . Susan, a manager at ABC International, holds on to authority and acts in a unilateral command and control fashion. Susan has a(n) __________ style. a) democratic b) human relations c) laissez-faire d) autocratic Answer: d Bloom’s: Application Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

16. The leadership style which combines concern for task and people is called:

a) laissez-faire. b) autocratic. c) democratic. d) human relations. e) charismatic.

Answer: c Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

17. A leader with little concern for task and people has a(n) __________ style. a) democratic b) laissez-faire c) participative d) autocratic Answer: b Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

18. Which of the four leadership styles would be that of a weak leader? a) Autocratic b) Human relations c) Laissez-fair d) Democratic Answer: c Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

19. Fiedler’s model suggests that successful leadership depends upon the appropriate fit of personal style with the following contingency variables: a) money, competitive dynamics, and regulation. b) product type, industry life cycle, and market share. c) leader-member relations, task structure, and position power. d) manager personalities, labor relations, and union activity. e) buyer power, supplier power, and rivalry.

Answer: c Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

20. Which of the following is NOT a leadership style in the Hersey-Blanchard leadership model? a) Tasking b) Participating c) Delegating d) Selling Answer: a Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: The Hersey-Blanchard situational leadership model matches leadership styles with the maturity of followers.

21. . All of the following are leadership styles in the Hersey-Blanchard leadership model EXCEPT: a) Participating b) Delegating c) Selling d) Buying Answer: d Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: The Hersey-Blanchard situational leadership model matches leadership styles with the maturity of followers.

22. Which of the following is NOT one of House’s path goal theory leadership styles? a) Supportive b) Democratic c) Directive d) Participative Answer: b Bloom’s: Knowledge Difficulty: Easy Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: House’s path-goal theory matches leadership styles with task and follower characteristics.

23. The two groups identified in the LMX (Leader Member Exchange) theory are: a) task and people. b) participating and delegating. c) in and out. d) classical and behavioral.

Answer: c Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: Leader-member exchange theory describes how leaders treat in-group and out-group followers.

24. The Vroom-Jago model: a) helps managers lead through their use of decision-making methods. b) helps managers implement the classical model of decision making. c) is only useful in programmed decision situations. d) forces managers to make decisions without participation. e) helps managers avoid participation.

Answer: a Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods

25. . The leader’s decision choices in the Vroom-Jago leader – participation model are authority, consultative and __________. a) individual b) managerial c) group d) adversarial Answer: c Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods

26. If Jason is directing the efforts of others through tasks, rewards and structures, he is utilizing which of these leaderships? a) Transformational b) Participative c) Human relations d) Transactional Answer: d Bloom’s: Application Difficulty: Medium Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Transformational leadership inspires enthusiasm and great performance.

27. __________ leadership is inspirational and arouses extraordinary effort and performance. a) Transactional b) Transformational c) Autocratic d) Task Answer: b Bloom’s: Knowledge Difficulty: Medium Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Transformational leadership inspires enthusiasm and great performance.

28. A(n) __________ leader develops special leader-follower relationships and inspires followers in extraordinary ways. a) charismatic b) human relations c) autocratic d) task oriented Answer: a Bloom’s: Knowledge Difficulty: Easy Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Transformational leadership inspires enthusiasm and great performance.

29. __________ leaders raise the confidence, aspirations, and performance of followers through empowerment, intellectual stimulation, and integrity. a) Autocratic b) Transactional c) Transformational d) Directive Answer: c Bloom’s: Knowledge Difficulty: Medium Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Transformational leadership inspires enthusiasm and great performance.

30. All of the following would be examples of emotionally intelligent activities EXCEPT: a) social awareness. b) an ability to empathize with others. c) the regular use of position power to manage people. d) self-regulation and management. e) an understanding of one’s own moods and emotions.

Answer: c Bloom’s: Knowledge Difficulty: Medium Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Emotionally intelligent leadership handles emotions and relationships well.

31. __________ leadership is strong on communicating, participation and dealing with problems by teamwork. a) Ethical b) Task oriented c) Interactive d) Instructional Answer: c Bloom’s: Knowledge Difficulty: Easy Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Interactive leadership emphasizes communication and participation.

32. Serving others, helping them use their talents to help organizations to best serve society, is called __________ leadership. a) participative b) ethical c) servant d) transactional Answer: c Bloom’s: Knowledge Difficulty: Easy Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Servant leadership is follower centered and empowering.

33. Giving people job freedom and power to influence affairs in the organization is called __________. a) delegating b) ethical management c) empowerment d) entrepreneurship Answer: c Bloom’s: Knowledge Difficulty: Easy Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Servant leadership is follower centered and empowering

34. Authority decisions work best when:

a) leaders know little about a situation. b) leaders have adequate time for discussion. c) leaders are capable of acting alone. d) others may resist the decision they make.

Answer: c Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods.

35. A potential cost of participation is: a) shortage of ideas. b) conflict among employees. c) lost efficiency. d) loss of authority among leaders.

Answer: c Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods.

36. Servant leadership is _________ centered. a) employee b) leader c) service d) follower Answer: d Bloom’s: Knowledge Difficulty: Easy Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Servant leadership is follower centered and empowering.

37. Which of the following is not a challenge manager’s face on their quest to succeed as leaders? a) Shorter time frames b) Solving less complex problems c) Focusing on long term goals while managing short term pressures d) Second chances become less available Answer: b Bloom’s: Knowledge Difficulty: Easy Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leadership is one of the four functions of management

38. Leaders bring ________ to leadership situations. a) control b) organization c) vision d) efficiency Answer: c Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders bring vision to leadership situations

39. _________ means giving specific task directions and closely supervising work. a) Selling b) Telling c) Delegating d) Participating Answer: b Bloom’s: Knowledge Difficulty: Easy Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: The Hersey-Blanchard situational leadership model matches leadership styles with the maturity of followers.

True/False

40. Leadership is all about being the best performer.

Answer: False Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Intro.

41. Legitimate power comes with the position in the organization.

Answer: True Bloom’s: Knowledge Difficulty: Easy Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use position power to achieve influence.

42. Referent power comes from having the knowledge of an expert.

Answer: False Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use personal power to achieve influence.

43. Expert power is the ability to influence others because they admire you and want to be identified with you.

Answer: False Bloom’s: Knowledge Difficulty: Easy Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use personal power to achieve influence.

44. Research has categorized management behaviors into two general classes: concern for task (production) and concern for people.

Answer: True Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

45. Visionary leadership brings to the situation a clear sense of the future and an understanding of how to get there.

Answer: True Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders bring vision to leadership situations.

46. Research finds that a human relations leader emphasizes tasks over people.

Answer: False Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

47. An autocratic leadership style is one of command and control.

Answer: True Bloom’s: Knowledge Difficulty: Easy Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

48. There is one style of management that always works best.

Answer: False Bloom’s: Knowledge

Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: Intro.

49. . In the Fiedler scheme, the task-motivated leader is most effective at the extremes (i.e., high control or low control situations).

Answer: True Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

50. House believes that a leader cannot move back and forth among the four leadership styles: directive, supportive, achievement-oriented, and participative.

Answer: False Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: House’s path-goal theory matches leadership styles with task and follower characteristics.

51. “Adding value” in House’s theory of leadership means contributing things that are missing and doing what won’t take care of itself.

Answer: True Bloom’s: Knowledge Difficulty: Easy Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: House’s path-goal theory matches leadership styles with task and follower characteristics.

52. The Vroom–Jago model helps managers decide who should make the decision.

Answer: True Bloom’s: Knowledge Difficulty: Easy Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods.

53. Charismatic leadership and transactional leadership are very nearly the same things, with both focused on creating enthusiasm and inspiration.

Answer: False Bloom’s: Knowledge Difficulty: Medium Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Transformational leadership inspires enthusiasm and great performance.

54. Emotional intelligence is a key ingredient in the rise of exceptional leaders.

Answer: True Bloom’s: Knowledge Difficulty: Easy Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Emotionally intelligent leadership handles emotions and relationships well.

55. While the styles may vary somewhat, research shows that men are more effective leaders than women.

Answer: False Bloom’s: Knowledge Difficulty: Medium Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Interactive leadership emphasizes communication, listening, and participation.

56. While the interactive leadership style is most closely identified with female leader behaviors, both men and women can effectively utilize the style.

Answer: True Bloom’s: Knowledge Difficulty: Easy Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Interactive leadership emphasizes communication, listening, and participation.

57. . Moral leadership builds trust from a foundation of personal integrity.

Answer: True Bloom’s: Knowledge Difficulty: Medium Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Moral leadership builds trust from a foundation of personal integrity.

58. Integrity is the cornerstone of leadership.

Answer: True Bloom’s: Knowledge Difficulty: Medium Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Moral leadership builds trust from a foundation of personal integrity.

Fill-in-the-Blank

59. . __________ is the process of inspiring others to work hard to accomplish important tasks.

Answer: Leadership Bloom’s: Knowledge Difficulty: Easy Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leadership is one of the four functions of management.

60. The ability to get someone else to do what you want done, regardless of their inclination to do so, is called __________.

Answer: power Bloom’s: Knowledge Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use position power to achieve influence.

61. . __________ is the capacity to influence through authority, gained by virtue of one’s status as a manager.

Answer: Legitimate power (position power) Bloom’s: Knowledge Difficulty: Easy Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use position power to achieve influence.

62. A (n) __________ leader is one with high concern for task, low concern for people, and who tends to act in a unilateral command-and-control manner.

Answer: autocratic Bloom’s: Knowledge Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

Difficulty: Medium Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

63. The LPC acronym in Fiedler’s model means __________.

Answer: least-preferred co-worker Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

64. Of House’s four leadership styles, the one focused on setting challenging goals, expecting high performance, and showing confidence is the __________ style.

Answer: achievement-oriented Bloom’s: Knowledge Difficulty: Medium Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: House’s path-goal theory matches leadership styles with task and follower characteristics.

65. Your text suggests that one of the easiest ways to spot the difference between a transactional and a transformational leader is to look at their __________ and note differences in the level of enthusiasm and loyalty that you see.

Answer: followers (employees or subordinates)

Bloom’s: Knowledge Difficulty: Medium Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Transformational leadership inspires enthusiasm and great performance.

66. __________ is an ability to understand the emotions in oneself and others and be able to use this understanding to handle relationships effectively.

Answer: Emotional intelligence Bloom’s: Knowledge Difficulty: Medium Learning Objective 3: Discuss current issues and directions in leadership development..

Section Reference: Emotionally intelligent leadership handles emotions and relationships well.

67. There are __________ primary emotional intelligence competencies.

Answer: four Bloom’s: Knowledge Difficulty: Medium Learning Objective 3: Discuss current issues and directions in leadership development..

Section Reference: Emotionally intelligent leadership handles emotions and relationships well.

68. __________ involves a commitment to serving others, helping others to fully develop their talents, and working together to benefit society.

Answer: Servant leadership Bloom’s: Knowledge Difficulty: Easy Learning Objective 3: Discuss current issues and directions in leadership development.

Section Reference: Servant leadership is follower centered and empowering.

Essay

69. Why is it that both position power and personal power are required for effective leadership?

Answer: The essence is that the two types of power bases work in different ways.

Position power works mostly by compelling people to do things and lasts only so long as the compulsion is present. On the other hand, personal power works by getting people to accept the work and to do it because they want to. This latter motivation is one of commitment and is not dependent upon continued pressure from the leader. In the shortrun, position power can be very effective in getting things done immediately. However, for the long-run, a manager has to be able to count on subordinates doing things without constant supervision, so personal power has to be available.

Difficulty: Medium Bloom’s: Evaluation Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders use position power to achieve influence.

70. Compare and contrast the Fiedler and House theories on leadership.

Answer: They are similar in that both are contingent approaches, meaning that they recognize that different approaches are needed at different times. They are different in that Fiedler believes that people are born with leader traits, while House believes that leadership is a matter of behaviors that can be learned.

Difficulty: Medium Bloom’s: Analysis Learning Objective 2: Identify insights of the contingency leadership theories.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences; House’s path-goal theory matches leadership styles with task and follower characteristics.

71. Identify and define the four leadership styles on Blake and Morton’s task-production leadership grid and their relationship (high or low) with respect to task concern and production concern.

Answer: The four leadership styles are autocratic, human relations, democratic and laissez-faire.

Autocratic leadership acts in a unilateral command and control manner. The autocratic leader holds onto control and delegates little. It is high task concern and low people concern style.

Human relations leadership emphasizes people over tasks. The leader is interpersonally engaging, caring about others and act in ways that builds harmony and good relationships. It is a low task concern and high people concern style.

Democratic leadership is a combination of autocratic leadership and human relations leadership and emphasizes tasks and people. It is a high task and high people style.

Laissez-faire leadership is hardly leadership at all in that there is little concern for either tasks or people. It is a low tasks and low people style.

Difficulty: Medium Bloom’s: Comprehension Learning Objective 1: Understand the foundations for effective leadership.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

72. What is emotional intelligence? List and define its four components.

Answer: Emotional intelligence is the ability to manage one’s emotions in social relationships. Its components are self-awareness, social awareness, self-management and relationship management.

Self-awareness is the ability to understand your moods and emotions.

Social awareness is the ability to understand and empathize with the emotions of others.

Self-management is the ability to control your emotions.

Relationship management is the ability to relate to others in a positive way.

Difficulty: Medium Bloom’s: Knowledge Learning Objective 3: Discuss current issues and directions in leadership development..

Section Reference: Emotionally intelligent leadership handles emotions and relationships well.

73. Define and explain the difference between transactional and transformational management.

Answer: Transactional leadership directs the efforts of others through tasks, rewards and structures. Transformational leadership is inspirational and arouses extraordinary effort and performance. Transactional leadership is more task-oriented and more suited to mechanistic organizations. Transformational leadership is more people-oriented and more suited to organic organizations.

Difficulty: Medium Bloom’s: Comprehension Learning Objective 3: Discuss current issues and directions in leadership development..

Section Reference: Transformational leadership inspires enthusiasm and great performance.

Chapter 12: Individual Behavior Test Bank

Multiple Choice

1. The process through which people receive and interpret information from the environment is called __________. a) projection b) constructive stress c) perception d) reception Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perception filters information received from our environment.

2. _______________ is the perceptual distortion caused by the use of a single characteristic or exposure to draw overall conclusions about an individual. a) Projection b) Stereotyping c) Halo effect d) Selective perception Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

3. Consider the following example of how managers may misconstrue work behavior. If they see men in a discussion, they might think they are discussing a new deal; if it’s a group of women, they might perceive them as gossiping. This is an example of __________. a) stereotyping b) the halo effect

c) selective perception d) projection Ans: a Bloom’s: Application Level: Difficult Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

4. The tendency to overestimate internal factors and underestimate external factors as influences on someone’s behavior is called __________. a) projection b) selective projection c) fundamental attribution error d) impression management Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perception can cause attribution errors as we explain events and problems.

5. The process of creating explanations for events is called __________. a) attribution b) self-awareness c) self-serving bias d) projection Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perception can cause attribution errors as we explain events and problems.

6. __________ tries to create desired perceptions in the eyes of others. a) Self-serving bias b) Selective perception c) Impression management d) Projection

Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Impression management is a way of influencing how others perceive us.

7. Tanya is the president of Cookware LLC. At the monthly orientation meeting she not only addressed the new employees but also their family members. Tanya was practicing __________. a) speaking b) projection management c) self-serving bias d) impression management Ans: d Bloom’s: Application Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Impression management is a way of influencing how others perceive us.

8. The profile of characteristics making a person unique from others is called __________. a) emotional stability b) personality c) locus of control d) extroversion Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

9. Which of the following is NOT a Big Five personality trait? a) Agreeableness b) Emotional stability c) Intelligence d) Extraversion Ans: c Bloom’s: Knowledge

Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

10. A(n) __________ person is dependable, organized, and focused on getting things done. a) extraverted b) agreeable c) conscientious d) emotionally stable Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

11. _____________ is the extent to which one believes that what happens is within their control. a) Self confidence b) Emotional stability c) Extroversion d) Locus of control Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

12. Jenna believes that, for the most part, she is responsible for what happens to her. She has a(n) __________ locus of control. a) internal b) external c) self-monitoring d) standard Ans: a Bloom’s: Application Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

13. Susan, for the most part has always believed that she is not responsible for what happens to her. Susan has a(n)__________ locus of control. a) internal b) external c) self-monitoring d) standard Ans: b Bloom’s: Application Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

14. Alex is having difficulty at work and he believes that the problem is with his work environment even though all others are doing well. Alex, most likely, has a(n) __________ locus of control. a) internal b) external c) self-monitoring d) standard Ans: b Bloom’s: Application Level: Difficult Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

15. Which of the following is the degree to which a person defers to authority and accepts status differences? a) Machiavellianism b) Authoritarianism c) Locus of control d) Personality Ans: b

Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

16. __________ is the degree to which someone uses power manipulatively. a) Authoritarianism b) Controlism c) Machiavellianism d) Locus of control Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

17. . A physical and mental exhaustion from work stress is known as: a) job burnout. b) constructive stress. c) self-bias. d) destructive attribute.

Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

18. . Among high-Machs, which of the following is NOT expected? a) Emotional detachment b) Concern for the means over the end c) Exploitation of others d) Manipulation Ans: b Bloom’s: Knowledge Level: Medium

Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

19. . According to the Myers-Briggs Type Indicator, a type ESTJ person would most likely be: a) analytical, strategic, forceful, and quick to take charge. b) practical, decisive, logical, and quick to dig in. c) insightful, free thinking, and determined. d) conscientious, considerate, and helpful Ans: b Bloom’s: Knowledge Level: Difficult Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Myers-Briggs Type Indicator is a popular approach to personality assessment.

20. All of the following would be characteristic of true high self-monitors EXCEPT: a) a willingness and ability to change. b) a desire to learn. c) comfort with feedback. d) predictability.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

21. __________ is a state of tension experienced by individuals facing extraordinary demands, constraints, or opportunities. a) Fear b) Stress c) Self satisfaction d) Joy Ans: b Bloom’s: Knowledge Level: Easy

Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

22. A(n) __________ personality is oriented toward extreme achievement, impatience, and perfectionism. a) self-monitoring b) agreeable c) Type A d) Type B Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

23. The degree to which someone is able to adjust his or her behavior in response to external factors is called __________. a) self-awareness b) selfishness c) locus of control d) self-monitoring Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

24. Very high stress at work may cause all of the following EXCEPT: a) physical exhaustion. b) reduced job satisfaction. c) personal problems. d) higher performance.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

25. In addition to working overtime at her manager’s request, Riya has also had three exams this week. Riya thinks she did poorly on the second exam and is afraid she won’t pass the third.

This situation is an example of which of the following? a) Multiple personalities b) Type A personality c) Destructive stress d) Personal wellness Ans: c Bloom’s: Application Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

26. Job burnout and workplace rage can be the result of long term __________. a) Type A personality b) constructive stress c) personal wellness d) destructive stress Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

27. Sally tends to procrastinate early in a project’s development, but she always comes through when the pressure is on. For Sally, the pressure is a form of __________. a) Type A personality b) constructive stress c) personal wellness d) destructive stress Ans: b Bloom’s: Application Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

28. Strategies to reduce the negative effects of workplace stress include all of the following EXCEPT: a) identifying and minimizing stressors. b) changing the temporary work schedule. c) reducing performance expectations. d) shortening deadlines.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

29. __________ is aggressive behavior toward co-workers or the work setting. a) Job burnout b) Workplace rage c) Self bias d) Destructive stress Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

30. __________ is a positive influence on effort, creativity, and diligence in work. a) Job burnout b) Constructive stress c) Self bias d) Destructive stress Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

31. A predisposition to act in a certain way is called __________. a) bias b) cognitive dissonance c) attitude d) manipulation Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

32. Which component of attitude reflects beliefs and values? a) Dissonance b) Cognitive c) Affective d) Behavior Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

33. . The __________ component of attitude reflects a specific feeling. a) dissonance b) cognitive c) affective d) behavior Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

34. The __________ component of attitude reflects an intention to behave consistently with the belief and feeling. a) dissonance b) cognitive c) affective d) behavior Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

35. ____________ is the discomfort that a person feels when attitude and behavior are inconsistent. a) Attitude b) Self-serving bias c) Cognitive dissonance d) Selective perception Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

36. Which of the following is the degree to which a person feels positive about a work experience? a) Cognitive dissonance b) Wellness c) Attitude d) Job satisfaction Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction is a positive attitude toward one’s job and work experience.

37. All of the following impact job satisfaction EXCEPT: a) co-workers b) the quality of supervision c) work conditions d) competitors.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction is a positive attitude toward one’s job and work experience.

38. The reason(s) that managers should be concerned about job satisfaction include(s) all of the following EXCEPT: a) the decrease in turnover. b) the increase in the bottom line. c) the decrease in absenteeism rates. d) the increase in layoffs.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction influences work behavior.

39. Organizational __________ behaviors are the extras people do to go the additional mile in their work. a) attitude b) dissonance c) contagion d) citizenship Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction influences work behavior.

40. A strong sense of belonging and connection with one’s work and employer is called employee ___________. a) citizenship b) satisfaction c) engagement d) merit Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction influences work behavior.

41. ____________ is the ability to understand emotions and manage relationships. a) Type A behavior b) Emotional intelligence c) Emotional stability d) Self-reliance Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Emotions and moods are positive and negative states of mind that influence behavior.

42. . Generalized positive and negative feelings or states of mind are called __________. a) moods b) agreeableness c) conscientiousness d) emotional stability Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Emotions and moods are positive and negative states of mind that influence behavior.

43. Which of the following are strong feelings directed toward someone or something? a) Perceptions b) Projections c) Emotions d) Moods Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Emotions and moods are positive and negative states of mind that influence behavior.

44. Mood ________ is the spillover of one’s positive or negative moods onto others. a) perception b) projection c) emotions d) contagion

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Emotions and moods are positive and negative states of mind that influence behavior.

45. Perception can cause ___________ errors as we explain events and problems. a) reaction b) reflection c) attribution d) acknowledgement Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior

Section Reference: Perception Can Cause Attribution Errors As We Explain Events And Problems

46. Employees say their stress comes from all of the following EXCEPT: a) excessive emails b) long hours c) unrealistic deadlines d) rate of pay Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior Section Reference: People with Type A Personalities Stress Themselves

47. A(n) _____________ uses one attribute to develop an overall impression of a person or situation. a) mood contagion b) halo effect c) withdrawal behavior d) emotion Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Emotions and Moods are Positive and Negative States of Mind that Influence Behavior.

True/False

48. It is possible for two people to witness the same event, and for them to have different perceptions as to its cause(s) and consequences.

Ans: True Bloom’s: Knowledge Level: Easy

Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: How do perceptions influence individual behavior?

49. . Assigning attributes commonly associated with a group to an individual is called the halo effect.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

50. The pooling of ideas and perceptions of many people may make it easier for selective perception to create problems.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

51. According to research, unfortunately, a person open to experience is narrow-minded and resists change.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

52. The ability to use power to manipulate others is an indication that the individual is a highMach.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

53. High self-monitors are able to adjust behavior in response to external factors.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

54. Type A personalities would likely make good leaders.

Ans: False Bloom’s: Knowledge Level: Difficult Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

55. Type A personalities tend to be stress free.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

56. All stress is a detrimental consequence of the workplace, one that should be eliminated.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

57. The Big Five personality traits can actually be used to better select new employees from a pool of candidates.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

58. A person with a high external locus of control is likely to blame themselves when things go wrong.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

59. Authoritarianism and Machiavellianism are the same.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

60. Job burnout is aggressive behavior toward co-workers or the work setting.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

61. A person with a Type A personality may try to do several things at once, feel guilty when relaxing, and use nervous gestures such as clenched fists.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

62. Fortunately, attitudes always predict behavior.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

63. The best way to understand the satisfaction and performance relationship is with satisfaction as a cause of high performance.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction has a complex relationship with job performance.

64. Emotional intelligence is a measure of an individual’s IQ. Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Emotions and moods are positive and negative states of mind that influence behavior.

Fill-in-the-Blank

65. __________ refers to the desire to succeed and reach for high goals.

Ans: Ambition Bloom’s: Knowledge Level: Medium

Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Management Live.

66. __________ is the process through which people receive and interpret data from the environment around them.

Ans: Perception Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: How do perceptions influence individual behavior?

67. The tendency to overestimate the influence of internal causes and underestimate the influence of external causes of behavior is known as the __________.

Ans: fundamental attribution error Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perception can cause attribution errors as we explain events and problems.

68. __________ describes the combination or overall profile of characteristics that makes each of us unique.

Ans: Personality Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

69. A person who is __________ is secure, calm, steady, and self-confident.

Ans: emotionally stable Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

70. A person who is __________ is trusting, courteous, and helpful, getting along well with others.

Ans: agreeable Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

71. __________ is the trait governing the degree to which a person defers to those in charge and accepts status differences.

Ans: Authoritarianism Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

72. The state of tension that people feel when facing extraordinary demands, constraints, or opportunities is called __________.

Ans: stress Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

73. Overly aggressive behavior toward fellow workers, customers, or management can be a sign of __________.

Ans: workplace rage Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

74. . Employer sponsored efforts to encourage exercise, better nutrition, and the end of destructive habits related to smoking or alcohol are known as __________.

Ans: wellness programs Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

75. __________ is the pursuit of a personal health promotion program.

Ans: Personal wellness Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

76. . The discomfort felt when our behaviors are inconsistent with our attitudes is known as __________.

Ans: cognitive dissonance Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

77. __________ involves behaviors that go beyond the assigned job duties to benefit the organization as a whole.

Ans: Organizational citizenship Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction influences work behavior.

78. __________ behaviors include absenteeism and turnover.

Ans: Withdrawal Bloom’s: Knowledge Level: Medium

Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction influences work behavior.

Essay

79. Define locus of control in terms of its two components.

Ans: Locus of control is the extent to which one believes that what happens is within one’s control. Individuals tend toward either an internal or external locus of control. Those with an internal locus believe that they are in control of what happens, while those with an external locus tend to blame external events for what happens.

Bloom’s: Comprehension Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Personal conception and emotional adjustment traits show up in personalities.

80. Define job satisfaction and its relation to job performance.

Ans: Job satisfaction is the degree to which an individual feels positive about a job and work experience. Although many would like to believe that there is a strong correlation between job satisfaction and job performance, there is no clear scientific evidence that this is true.

Bloom’s: Analysis Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction is a positive attitude toward one’s job and work experiences; Job satisfaction influences work behavior; Job satisfaction has a complex relationship with job performance.

81. Define stress, constructive stress, destructive stress and how to manage it.

Ans: Stress is a state of tension experienced by individuals facing extraordinary demands, constraints or opportunities. Stress can be constructive or destructive. Constructive stress has a positive influence on effort, creativity, and diligence in work. Destructive stress is a negative influence on one’s performance. Job burnout and workplace rage are two negative conditions resulting from destructive stress. Job burnout is physical and mental exhaustion. Workplace rage

is aggressive behavior towards others in the workplace. Personal wellness, exercising, and weight control can help in reducing the negative effects of destructive stress.

Bloom’s: Comprehension Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

82. Define perception and describe the four types of perception distortions.

Ans: Perception is the process through which people receive and interpret information from the environment. The four types of perception distortion are stereotype, a halo effect, selective perception, and projection.

A stereotype assigns attributes commonly associated with a group to an individual.

A halo effect is the use of a single characteristic or exposure to draw overall conclusions about an individual.

Selective perception is the tendency to define problems from one’s own point of view.

Projection assigns personal attributes to other individuals.

Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

83. Define attitude, its three components and their relationship to cognitive dissonance.

Ans: Attitude is a predisposition to act in a certain way. The three components of attitude are cognitive, affective, and behavior. The cognitive component reflects a belief or value. The affective component reflects a specific feeling. The behavior component reflects an intention to behave consistently with the belief and feeling. Cognitive dissonance, an uncomfortable feeling, results when attitude and behavior are inconsistent with each other.

Bloom’s: Analysis Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain way

Chapter 13: Motivation Test Bank Multiple Choice

1. Internal forces within a person that account for the level, direction, and persistence of effort at work (is) are called __________. a) needs b) satisfier (motivating) c) motivation d) hygiene factors Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

2. . A __________ is an unfulfilled physiological or psychological desire. a) motivator b) satisfier c) hygiene factor d) need Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

3. In Maslow’s hierarchy of needs theory, which of the following states that a satisfied need is not a motivator of behavior? a) Progression b) Existence c) Frustration-regression d) Deficit Ans: d Bloom’s: Knowledge * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

4. In Maslow’s hierarchy of needs theory, __________ states that people try to satisfy lower level needs first, then move on to the next higher level. a) progression b) existence c) frustration-regression d) deficit Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

5. At what level does Maslow’s progression principle stop? a) Esteem b) Safety c) Self-actualization d) Social Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

6. Which of Maslow’s higher-order needs translate to which Alderfer ERG needs category? a) Growth needs b) Existence needs c) Relationship needs d) Physiological needs Ans: a Bloom’s: Knowledge Level: Difficult Learning Objective 1: Describe how human needs influence motivation to work. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

7. What is the highest level of need in Maslow’s hierarchy of needs? a) Esteem b) Self-actualization c) Social d) Safety Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

8. What is the lowest level of need in Maslow’s hierarchy of needs? a) Esteem b) Physiological c) Social d) Safety Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

9. The lower order of needs in Maslow’s hierarchy of needs include physiological, safety, and __________. a) esteem b) self-actualization c) shelter d) social Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

10. The higher order of needs in Maslow’s hierarchy of needs include self-actualization and __________. a) esteem b) physiological c) shelter d) social Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

11. Appropriate working conditions, job security, and base compensation and benefits are all examples of __________ needs. a) safety b) physiological c) shelter d) social Ans: a Bloom’s: Comprehension Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

12. . According to ERG theory, the _____________ is the idea that a lower-level need reactivates when we are unable to satisfy a higher-level need. a) deficit principle b) frustration-regression principle c) progression principle d) law of effect e) law of valence Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Alderfer’s ERG theory deals with existence, relatedness, and growth needs.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

13. Which of the following would not support a worker’s esteem needs? a) Job security b) Responsibility for an important job c) Promotion to a higher status job d) Praise from the boss Ans: a Bloom’s: Comprehension Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

14. What are the two factors in Herzberg’s two-factor theory? a) Satisfier / achievement b) Achievement / hygiene c) Hygiene / satisfier d) Recognition / satisfier Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

15. According to Herzberg, a __________ is found in the job context such as working conditions, organizational policies, and salary. a) satisfier factor b) need c) principle d) hygiene factor Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

16. According to Herzberg, a __________ is found in job content such as a sense of achievement, recognition, responsibility, advancement, or personal growth. a) need * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) satisfier factor c) desire d) hygiene factor Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

17. According to Herzberg, __________ influence job dissatisfaction. a) motivating factors b) needs c) satisfier factors d) hygiene factors Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

18. . All of the following are satisfier factors EXCEPT: a) recognition. b) salary. c) the work itself. d) achievement.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

19. Herzberg believed that motivation and higher performance could be achieved by improving the content of a job. He called this job __________. a) hunting b) design c) manipulation d) enrichment * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

20. The three needs in McClelland’s Acquired Needs Theory are the need for achievement, _______, and affiliation. a) esteem b) safety c) self-actualization d) power Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

21. According to McClelland’s Acquired Needs Theory, the need for __________ is the desire to do something better, to solve problems, or to master complex tasks. a) power b) achievement c) recognition d) affiliation Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

22. According to McClelland’s Acquired Needs Theory, the need for __________ is the desire to control, influence, or be responsible for other people. a) power b) achievement c) recognition * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

d) affiliation Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

23. According to McClelland’s Acquired Needs Theory, the need for __________ is the desire to establish and maintain good relations with people. a) power b) achievement c) recognition d) affiliation Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

24. According to McClelland’s Acquired Needs Theory, the need to do something better or more efficiently is __________. a) equity b) power c) achievement d) affiliation Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

25. The process of allocating specific work tasks to individuals and groups is called job__________. a) content * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) design c) enrichment d) enlargement Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

26. The process of increasing job content by adding work planning and evaluating duties normally performed by the supervisor is called job __________. a) content b) design c) enrichment d) identity Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

27. The degree to which the job has a substantial impact on the lives or work of other people elsewhere in the organization or in the external environment is called __________. a) autonomy b) task significance c) task identity d) skill variety Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

28. The degree to which the job requires completion of a “whole” and identifiable piece of work, one that involves doing a job from beginning to end with a visible outcome is called __________. a) autonomy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) task significance c) task identity d) skill variety Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

29. Research indicates that as a result of perceived positive inequity, a worker might be expected to produce any of the following behaviors EXCEPT: a) increasing the quantity of work. b) improving the quality of work. c) reducing the current work effort. d) taking on more difficult assignments.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Equity theory explains how social comparisons motivate individual behavior.

30. Vroom’s Expectancy Theory’s equation is, Motivation= Expectancy  Instrumentality  _________. a) Outcome b) Results c) Valence d) Goals Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

31. In Vroom’s theory, the effort-performance link is the belief that putting in the effort will lead to the desired level of performance. This is called __________. a) valence * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) expectancy c) instrumentality d) achievement Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

32. In Vroom’s Expectancy Theory, __________ is a person’s belief that various outcomes will occur as a result of task performance. a) expectancy b) valence c) instrumentality d) achievement Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

33. In Vroom’s Expectancy Theory, which of the following is the value a person assigns to work-related outcomes? a) Expectancy b) Valence c) Instrumentality d) Achievement Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

34. To maximize expectancy in Vroom’s Expectancy Theory, a manager should do all of the following EXCEPT: a) Establish and maintain good relationships with workers. b) Selecting workers with the right abilities for the jobs to be done. c) Providing the best training and development. d) Supporting workers with resources.

Ans: a Bloom’s: Comprehension Level: Difficult Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

35. Locke’s goal setting theory suggests that which of the following goals can be motivating factors, if they are the right goals and they are set in the right way? a) Easy goals b) Equity goals c) Valence goals d) Task goals Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Goal-setting theory shows that well-chosen and well-set goals can be motivating.

36. MBO (management by objectives) is most closely related to __________ theory of motivation. a) Herzberg’s b) Skinner’s c) Locke’s d) Maslow’s Ans: c Bloom’s: Knowledge Level: Difficult Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Goal-setting theory shows that well-chosen and well-set goals can be motivating.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

37. Thorndike’s law of __________ states that behavior followed by pleasant consequences is likely to be repeated; behavior followed by unpleasant consequences is not. a) effect b) behavior c) outcomes d) expectancy Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

38. B.F. Skinner’s concept of __________ is the control of behavior by manipulating its consequences. a) expectancy b) equity c) acquired needs d) operant conditioning Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

39. According to Skinner, __________ strengthens a behavior by making a desirable consequence contingent on its occurrence. a) negative reinforcement b) punishment c) positive reinforcement d) extinction Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

40. According to Skinner, __________ strengthens a behavior by making the avoidance of an undesirable consequence contingent on its occurrence. a) negative reinforcement b) punishment c) positive reinforcement d) extinction Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

41. According to Skinner, __________ discourages a behavior by making an unpleasant consequence contingent on its occurrence. a) negative reinforcement b) punishment c) positive reinforcement d) extinction Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

42. According to Skinner, __________ discourages a behavior by making the removal of a desirable consequence contingent on its occurrence. a) negative reinforcement b) punishment c) positive reinforcement d) extinction Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

43. Workers who are engaged generally have what type of attitude toward their jobs? a) Negative b) Positive c) Stressful d) Indifferent Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work. Section Reference: Management Live

44. According to McClelland, people with a high need for affiliation prefer jobs offering all of the following EXCEPT: a) companionship. b) social approval. c) high rate of pay d) satisfying interpersonal relationships.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation

45. People with a high need to power tend to: a) behave in ways that have a clear impact on other people and events. b) enjoy satisfying interpersonal relationships. c) do not enjoy being in control. d) prefer jobs offering companionship.

Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation

46. To have _____________ people must perceive that their performance accomplishments will be followed by desired work outcomes. a) low instrumentalities * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) high instrumentalities c) positive valences d) low valences Ans: b Bloom’s: Comprehension Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy Theory considers Motivation, Expectancy, Instrumentality, and Valence.

47. To have _______ people must believe in their abilities and believe that if they try hard to do something they can perform it well. a) high expectancies b) high instrumentalities c) positive valences d) high valences Ans: a Bloom’s: Comprehension Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy Theory considers Motivation, Expectancy, Instrumentality, and Valence.

48. _______________ decreases the frequency of or eliminates an undesirable behavior by making the removal of a pleasant consequence. a) Punishment b) Reinforcement c) Conditioning d) Extinction Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

49. The law of ____________ reinforcement delivers the reward only when desired behavior occurs. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

a) immediate b) contingent c) positive d) negative Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Section Reference: Positive reinforcement connects desirable behavior with pleasant consequences.

True/False

50. Organizational research finds that people who work hard always get promoted.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy Theory considers Motivation, Expectancy, Instrumentality, and Valence.

51. Growth needs are essentially the lower-order needs in Maslow’s hierarchy.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow Described a Hierarchy of Needs Topped by Self-Actualization

52. Research on Maslow’s theory suggests that it is a good ending point for examining human needs and their potential influence on motivation since all needs related to motivation are examined and well-researched.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow Described a Hierarchy of Needs Topped by Self-Actualization

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

53. One key difference between Maslow’s Hierarchy of Needs Theory and Alderfer’s ERG Theory is that Maslow saw need progression as moving from bottom to top, while Alderfer believed that one bounced around in the hierarchy due to frustrations in obtaining higher order needs.

Ans: True Bloom’s: Comprehension Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

Section Reference: Alderfer’s ERG theory deals with existence, relatedness, and growth needs.

54. Allowing workers to participate in making important decisions is one way to provide for their self-actualization needs.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

55. Maslow’s hierarchy of needs better explains human behavior than Alderfer’s ERG theory.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

56. Herzberg’s work, contrary to most motivational approaches today, suggests working on job content instead of trying to spice up the job context.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

57. The hygiene factors in the Herzberg model are associated with the lower order needs of Maslow and Alderfer.

Ans: True Bloom’s: Knowledge Level: Difficult Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

58. According to Herzberg’s two factor theory, salary is a satisfier.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

59. The core characteristics model approaches job design with a focus on eight “core” job characteristics.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

60. The need for personal power is what drives successful leaders.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

61. McClelland identified acquired needs as the need for power, achievement, and selfactualization.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

62. Job design increases job content by adding work planning and evaluating duties normally performed by a supervisor.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

63. If employees feel that they are not being treated fairly, they will adjust their behavior accordingly. This is the basis of equity theory.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Equity theory explains how social comparisons motivate individual behavior.

64. Vroom’s Expectancy Theory is based on the equation, Motivation = Expectancy  Instrumentality  Valence.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

65. The key to applying goal-setting theory and management by objectives is for the employees to set their own goals.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Goal-setting theory shows that well-chosen and well-set goals can be motivating.

66. To maximize valence, managers need to understand individual needs and try to tie work outcomes to important sources of need satisfaction.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

67. . Skinner’s operant conditioning is based on manipulating the consequences of individual behavior.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

68. Skinner’s reinforcement theory defines negative reinforcement as the removal of a negative factor.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

69. Negative reinforcement decreases the frequency of or eliminates an undesirable behavior.

Ans: False Bloom’s: Knowledge Level: Difficult Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

70. The “law of effect” states that people will repeat behaviors that have pleasant outcomes and will avoid behaviors that have unpleasant outcomes.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

Fill-in-the-Blank

71. __________ refers to aspects of the work experience that create a sense of connection to the job and organization.

Ans: Engagement Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Management Live.

72. __________ is the force that determines the direction, level, and persistence of individual effort.

Ans: Motivation Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

73. Unfulfilled desires that stimulate people to behave in ways that will satisfy these desires are called __________.

Ans: needs Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

74. Alderfer’s ERG model condenses __________ five levels of need into three levels.

Ans: Maslow’s Bloom’s: Knowledge Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Alderfer’s ERG theory deals with existence, relatedness, and growth needs.

75. The need for __________, as described by McClelland, involves the desire to control, influence, or be responsible for other people.

Ans: power Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

76. Herzberg suggests that one way to improve job content is to build more opportunities into jobs. This process is known as __________.

Ans: job enrichment Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

77. The degree to which a job requires a variety of different activities to carry out the work is referred to as __________.

Ans: skill variety * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Bloom’s: Knowledge Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

78. In Equity Theory, it is perceived __________ that motivate our behaviors.

Ans: inequities Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Equity theory explains how social comparisons motivate individual behavior.

79. In Expectancy Theory, the value that an individual places upon a work-related outcome or reward is called __________.

Ans: valence Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

80. Locke’s basic premise in goal-setting theory is that it works only if the __________ goals are set in the __________ way.

Ans: specific, right Bloom’s: Knowledge Level: Difficult Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Goal-setting theory shows that well-chosen and well-set goals can be motivating.

81. In order for goals to create the most motivation, Locke recommends worker __________ in setting the goals.

Ans: participation * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Goal-setting theory shows that well-chosen and well-set goals can be motivating.

82. The control of behavior (in Skinner’s reinforcement theory) by manipulating its consequences is called __________.

Ans: operant conditioning Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

83. . __________ is positive reinforcement of successive approximations to the desired behavior.

Ans: Shaping Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Positive reinforcement connects desirable behavior with pleasant consequences.

Essay

84. How might the tactics of operant conditioning be considered unethical?

Ans: It involves tactics to elicit desired behaviors which can be seen as manipulative. In this light, it can be argued that such tactics do not respect the workers as individuals, that they infringe upon worker freedoms, and that they fail to recognize more noble ways to motivate people beyond external rewards.

Bloom’s: Evaluation Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

85. Explain Maslow’s hierarchy of needs and define each of the needs in the hierarchy.

Ans: Maslow believed that individuals had a hierarchy of needs. As the lower level needs were satisfied, they would strive to satisfy the next level of need. He called satisfying the next level of need as the progression principle. The five needs in Maslow’s hierarchy are physiological, safety, social, esteem, and self-actualization.

Physiological needs are the need for food, water and shelter.

Safety needs include being free from harm.

Social needs are those necessary for companionship such as family and friends.

Esteem needs are those that relate to having the approval of others.

Self-Actualization needs include the need for education and personal growth.

These same needs can also be related to the work environment.

Bloom’s: Comprehension Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

86. Define and explain Herzberg’s two factor theory. Include examples of the two factors in the theory.

Ans: Herzberg believed that people could be motivated but, before they could be motivated, there were other conditions that needed to be met. He called those things that could motivate people motivating factors. He called those things necessary for motivation to occur hygiene factors.

Hygiene factors included salary, working conditions, and benefits. His premise was that if people were unhappy with the hygiene factors, it was unlikely that they could or would be motivated. In essence, he was saying that to be motivated, you had to be healthy, thus the name hygiene factors.

Motivators included achievement, recognition, and the work itself. He believed that the desire for these motivators was insatiable and therefore long lasting.

Bloom’s: Comprehension Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

87. What is the Vroom’s Expectancy Theory formula? Describe each of the components of the equation.

Ans: The formula is Motivation = Expectancy  Instrumentality  Valence where, Expectancy is a person’s belief that working hard will result in high task performance; Instrumentality is a person’s belief that various outcomes will occur as a result of task performance; and Valence is the value a person assigns to work related outcomes. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Bloom’s: Comprehension Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Chapter 14: Teams and Teamwork Test Bank Multiple Choice

1. A collection of people with complementary skills who regularly interact to pursue common goals is called a(n) __________. a) formal crowd b) informal group c) team d) temp committee Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

2. Which of the following is the creation of a whole that is greater than the sum of its parts? a) Dysfunction b) Effort c) Synergy d) Work Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

3. The process of people actively working together to accomplish common goals is called __________. a) delegation b) teamwork c) job sharing d) cross fertilization Ans: b Bloom’s: Knowledge * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

4. Teams that continually perform at very high levels are likely to do so because they __________. a) put in more time on the job b) have more members c) are paid more d) have synergy Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

5. John has the tendency to avoid responsibility by free-riding in groups. This is called: a) laziness. b) redundancy. c) social loafing. d) work avoidance.

Ans: c Bloom’s: Application Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams often suffer from common performance problems.

6. Sue was assigned to do a team project as part of her college management course. However, she quickly learned that if she did not participate, the other team members would pick up her share. Sue is guilty of __________. a) social loafing b) malpractice c) team depression d) groupthink Ans: a Bloom’s: Application Level: Medium * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams often suffer from common performance problems.

7. A group that is officially designated for a specific organizational purpose is called a(n) __________. a) informal group b) virtual network c) unofficial team d) formal team Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations are networks of formal teams and informal groups.

8. ________ teams include departments, teams, work units, and divisions. a) Informal b) Virtual c) Unofficial d) Formal Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations are networks of formal teams and informal groups.

9. An unofficial group that emerges from spontaneous relationships among people with common interests is called a(n) __________. a) informal group b) virtual network c) unofficial team d) formal team Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Organizations are networks of formal teams and informal groups.

10. Interest, friendship, and support groups are all __________. a) informal groups b) virtual networks c) unofficial teams d) formal groups Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations are networks of formal teams and informal groups.

11. A group that is brought together from outside of their daily job assignments to work in a small team for a specific purpose on a continuing basis is called a(n) __________. a) project team b) committee c) informal group d) support group Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

12. Good team managers, or leaders, can play all of the following roles EXCEPT: a) dictator. b) network facilitator. c) helpful participant. d) external coach.

Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations are networks of formal teams and informal groups.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

13. When a team is brought together for a specific purpose and disbands when the task is completed it is called a(n) __________. a) project team b) committee c) informal team d) support team Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

14. At ABC International, Jason operates with members who come from different functional units of the organization to work on a specific task. This group/team is called which of these? a) Informal group b) Interest group c) Cross-functional team d) Vertically integrated team Ans: c Bloom’s: Application Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

15. Which of these are groups of workers who meet on a regular basis with the goal of applying their expertise to continuous improvement? a) Cross-functional teams b) Employee involvement teams c) Virtual teams d) Informal groups Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

16. A __________ is a group of employees who meet periodically to discuss ways of improving work quality. a) cross functional team b) virtual team c) quality circle d) committee Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

17. Teams that have the authority to make decisions about how they share and complete their work are called __________. a) quality circles b) informal groups c) employee involvement teams d) self-managing teams Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Self-managing teams are a form of job enrichment for groups.

18. Teams that interface primarily through computer networks are called __________. a) virtual teams b) quality circles c) informal groups d) self-managed teams Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Virtual teams are increasingly common in organizations.

19. Which type of team achieves high levels of task performance, membership satisfaction, and future viability? * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

a) Project team b) Effective team c) Diverse team d) Normal team Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

20. The key outputs sought from effective teams include: a) communication, clear norms, and cohesion. b) goal clarity, diversity, and rewards. c) team performance, member satisfaction, and team viability. d) decisions, conflict resolution, and member interaction.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

21. The major input categories required for effective teams are _______, nature of task, membership characteristics, and team size. a) resources b) technology c) structures d) organizational setting Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

22. The outputs of effective teams are task performance, member satisfaction, and __________. a) team viability b) team size c) conflict * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

d) values Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

23. The team effectiveness equation states that Effectiveness = __________ + (Process gains – Process Losses). a) Quality b) Process Effectiveness c) Process gains and losses d) Quality of inputs Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

24. The way team members work together to accomplish tasks is called __________. a) groupthink b) group diversity c) wellness d) team process Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

25. Which of the following is not a stage in the team development process? a) Forming b) Storming c) Norming d) Taming Ans: b * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

26. The team development stage in which total integration is achieved and members can handle complex tasks and any interpersonal conflicts is the: a) storming stage. b) adjourning stage. c) performing stage. d) norming stage.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

27. The team development stage in which members begin to operate as a unit with shared rules of conduct is the __________ stage. a) storming b) norming c) performing d) forming Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

28. A behavior, rule, or standard expected to be followed by the group is called a __________. a) law b) cohesive component c) decision d) norm Ans: d Bloom’s: Knowledge * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by norms and cohesiveness.

29. The degree to which members are attached to and motivated to remain part of a team is called __________. a) normality b) performance c) cohesiveness d) forming Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by norms and cohesiveness.

30. Since positive performance norms are instrumental in achieving high performance, all of the following would support positive performance norms EXCEPT: a) members acting as positive role models. b) training new members in the desired behaviors. c) allowing the leader to make individual decisions to avoid conflict.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by norms and cohesiveness.

31. __________ is when any and all members contribute helpful task and maintenance activities to the team. a) Individual effort b) Distributed leadership c) Groupthink d. Storming Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Team performance is affected by task and maintenance roles.

32. Team performance is affected by task and __________ roles. a) gatekeeping b) encouraging c) self-confessing d) maintenance Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by task and maintenance roles.

33. An action taken by a team member that supports the emotional life of the group is called a(n) __________ activity. a) maintenance b) virtual c) task d) distributed Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by task and maintenance roles.

34. A(n) ___________ activity is an action taken by a team member that directly contributes to the group’s performance purpose. a) maintenance b) virtual c) task d) distributed Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by task and maintenance roles.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

35. In a __________ network, all members can communicate directly with each other. a) vertically integrated b) decentralized communication c) centralized d) closed Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by communication networks.

36. In a __________ communication network, communication flows only between individual members and a hub or center point. a) centralized b) decentralized c) socialized d) virtual Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by communication networks.

37. High performance teams typically have all of the following EXCEPT: a) clear and elevating goals. b) a result-oriented focus. c) standards of excellence in a collaborative team culture. d) little recognition for their accomplishments.

Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team building helps team members learn to better work together.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

38. A set of collaborative activities to gather and analyze data on a team and make changes to increase its effectiveness is called __________. a) virtual management b) team association c) leadership d) team building Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team building helps team members learn to better work together.

39. The process of choosing between alternatives is called __________. a) organizing b) groupthink c) decision making d) rationalizing Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance is affected by use of decision-making methods.

40. When two or three individuals “railroad” a decision on a group, the method used was decision by: a) lack of response. b) authority rule. c) minority rule. d) majority rule.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance is affected by use of deicision-making methods.

41. _______________ is the tendency for highly cohesive teams to lose their evaluative capabilities. a) Decision avoidance * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) Communication drift c) Centralized communication d) Groupthink Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance suffers when groupthink leads to bad decisions.

42. __________ is a disagreement over issues of substance and/or an emotional antagonism. a) Avoidance b) Conflict c) Competition d) Opposition Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

43. __________ conflict involves disagreements over goals, resources, rewards, policies, procedures, and job assignments. a) Emotional b) Substantive c) Physical d) Mental Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

44. In __________, everyone withdraws and pretends that conflict doesn’t really exist, hoping that it will simply go away. a) compromise b) competition c) accomodation d) avoidance

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

45. Competition and compromise are forms of which type of conflict? a) Win-win b) Lose-lose c) Win-lose d) Equal Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

46. Which of the following is NOT a conflict management style? a) Accommodation b) Confrontation c) Collaboration d) Avoidance Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

47. The conflict management style of __________ may be used when quick and decisive action is vital or when unpopular actions must be taken. a) accommodation b) competition c) collaboration d) avoidance Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Team performance benefits from good conflict management.

48. The three output goals that an effective team should accomplish are task performance, member satisfaction, and __________ a) team viability. b) team responsibility. c) individual performance. d) team accountability Ans: a Bloom’s: Knowledge Level: Hard Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

49. The creation of a whole that exceeds the sum of its parts is called: a) teamwork. b) synergy. c) a group. d) a formal team.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork Section Reference: Teams offer synergy and other benefits to organizations and their members

50. Organizations are networks of formal teams and ______________ a) social groups. b) informal teams. c) informal groups. d) project teams.

Ans: c Bloom’s: Knowledge Level: easy Learning Objective 1: Understand the importance of teams and teamwork Section Reference: Organizations are networks of formal teams and informal groups

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

51. Advantages to virtual teams include all of the following EXCEPT: a) allowing people great distances away from each other to work in teams. b) cost and time efficiencies. c) it is harder to keep a record of team activities. d) it is easier to share lot of information.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork Section Reference: Virtual teams are increasingly common in organizations

52. _____________ teams are those whose members are quite dissimilar to one another. a) Homogeneous b) Informal c) Heterogeneous d) Project Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork Section Reference: Teams need the right members for the tasks to be accomplished

53. All of the following are symptoms of groupthink EXCEPT: a) rationalizing unpleasant and disconfirming data. b) fearing competitors are stronger and smarter. c) self-censorship by members. d) illusions of unanimity.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance suffers when groupthink leads to bad decisions

True/False

54. Teams can be more pain than gain. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

55. Organizations are permeated with formal groups that form as a result of natural or spontaneous relationships among group members.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations are networks of formal teams and informal groups.

56. The purpose of cross-functional teams is to “knock down the walls” that tend to separate departments and seek integrative solutions.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

57. Quality circles are a form of self-managing teams.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

58. In spite of the great many potential advantages of teams and the wide-spread use of them, teams don’t work well in all situations.

Ans: True Bloom’s: Knowledge * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right members and other inputs to be effective.

59. For teams to be effective, you have to start with a firm foundation and quality inputs.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right members and other inputs to be effective.

60. The team effectiveness equation makes it mathematically clear that process gains must outweigh process losses in order for there to be a chance of team effectiveness.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right members and other inputs to be effective.

61. The performing stage is of critical interest to managers during team development because a “failure” here can be a long-lived detriment to the team’s performance future.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

62. Norms develop early and remain constant during the life of the team.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by norms and cohesiveness.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

63. Team cohesiveness is always a good thing.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by norms and cohesiveness.

64. While the task activities in a team are obviously shared, it is the sole responsibility of the team leader to ensure that the maintenance activities are taken care of.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

65. Team performance is affected by task and maintenance roles.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by task and maintenance roles.

66. The decentralized communication network works well for tasks requiring creativity and problem-solving.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by communication networks.

67. One of the possible downsides of a decision by unanimity is that it can lead to groupthink.

Ans: True Bloom’s: Knowledge Level: Medium * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance suffers when groupthink leads to bad decisions.

68. Unfortunately, at its core, conflict involves disagreements between people.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

69. Emotional conflict involves disagreements over goals, resources, rewards, policies, procedures, and job assignments.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

70. Avoidance and confrontation are forms of lose-lose conflict.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

71. The conflict management style of compromise may be used to arrive at temporary settlements of complex issues or to arrive at expedient solution when time is limited.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Fill-in-the-Blank

72. A __________ is a group of people who work together though computer-mediated interactions rather than face-to-face.

Ans: virtual team Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Virtual teams are increasingly common in organizations.

73. __________ is the creation of a whole that is greater than the sum of its parts.

Ans: Synergy Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

74. __________ are “free-riders” who slack off and allow other team members to carry the bulk of the workload.

Ans: Social loafers Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams often suffer from common performance problems.

75. An effective team requires high levels of task performance, __________, and team effectiveness.

Ans: membership satisfaction Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

76. ______________ is the way that team members work together to accomplish tasks. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: Team process (or group dynamic) Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right processes to be effective.

77. The last stage of the group development model is called __________.

Ans: adjourning Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

78. __________ are rules or standards of behavior expected of group members.

Ans: Norms Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams performance is affected by norms and cohesiveness.

79. The degree to which group members are attracted to and motivated to remain connected with each other is known as __________.

Ans: cohesion (or cohesiveness) Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams performance is affected by norms and cohesiveness.

80. When groups break into sub-groups due to disagreements or other divisiveness, the resulting communication scheme is called a(n) __________.

Ans: restricted communication network Bloom’s: Knowledge Level: Difficult Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by communication networks.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

81. __________ is the tendency for highly cohesive teams to lose their evaluative capabilities.

Ans: Groupthink Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance suffers when groupthink leads to bad decisions.

82. __________ conflict results from feelings of anger, distrust, dislike, fear, and resentment as well as from personality clashes.

Ans: Emotional Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

83. __________ occurs when each party to the conflict gives up something of value to the other.

Ans: Compromise Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

Essay

84. Discuss the advantages and disadvantages of virtual teams.

Ans: Advantages include collaboration despite time and distance barriers, time and cost efficiencies, reduction of interpersonal issues, and the ease of recording the team proceedings.

Disadvantages include difficulties in establishing good working relationships, limits in the richness of communication, and depersonalization of the work relationships among team members.

Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Virtual teams are increasingly common in organizations.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

85. How can cohesiveness work for and against effective team performance?

Ans: Cohesiveness works for the team in bringing members together in a supportive network of relationships to accomplish the group task. It can begin in the forming stage and see the team through the storming stage and on to the more productive later stages. Cohesiveness works against the team when it becomes the goal in itself, resulting in a reduction in evaluative discussions and the rise of groupthink.

Bloom’s: Evaluation Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance is affected by norms and cohesiveness; Team performance is affected by use of decision-making methods.

86. State and define the outputs of effective teams.

Ans: The outputs of effective teams are task performance, member satisfaction, and team viability.

Task performance is the degree to which the task was accomplished. Effective teams are high task performance teams.

Member satisfaction is the extent to which the team members are pleased with their participation in the process. Effective teams have a high degree of member satisfaction.

Team viability is the extent to which the team is capable of working together again as an effective team. Effective teams have high team viability.

Bloom’s: Comprehension Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right members and other inputs to be effective.

87. Explain the relationship between diversity as it relates to teams, team performance, and the time the team is together.

Ans: Research indicates that diverse teams, in the sense of the team members’ background, training and experience, are more effective (higher performing) than homogeneous teams. In the storming stages of team development, the homogenous teams may have an advantage simply because they are homogeneous. However, the longer the diverse teams are together, the more their performance level improves.

Bloom’s: Analysis Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Teams need the right members and other inputs to be effective; Teams move through different stages of development.

88. Name and define at least four ways that teams make decisions.

Ans: Teams make decisions by lack of response, authority rule, minority rule, majority rule, consensus, and unanimity.

Lack of response is when many alternatives are suggested without any discussion occurring.

When a decision is made, it is an uninformed decision.

Authority rule is when the person with the most authority makes the decision for the team. It is efficient but a counter to having teams.

Minority rule is when a minority of the team forces their position on the team. This method results in problems with implementing the decision.

Majority rule is when the majority makes the decision and is common for many teams.

Consensus is when the team is forced to argue the alternatives until they agree on one.

Unanimity is when all the team members agree on what they believe to be the best alternative.

This will certainly make implementation of the decision easier.

Bloom’s: Knowledge Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance is affected by use of decision-making methods.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Chapter 15: Communication Test Bank Multiple Choice

1. The process of sending and receiving symbols with meanings attached is called __________. a) transmission b) reception c) communication d) notification Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is a process of sending and receiving messages with meanings attached.

2. As an initiator of new communication in your group, you should understand that the communication cycle is complete when _________. a) the message is encoded b) the message is transmitted c) the message is received d) feedback occurs Ans: d Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is a process of sending and receiving messages with meanings attached.

3. __________ communication occurs when the receiver fully understands the intended meaning of the message. a) Efficient b) Effective c) Transactional * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

d) Transmission Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver understands the sender’s message.

4. Tom is trying to save money by calling an important customer instead of flying in to talk to him directly. Tom is trading communication __________ for communication __________. a) effectiveness; richness b) effectiveness; efficiency c) efficiency; effectiveness d) richness; noise Ans: b Bloom’s: Application Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver understands the sender’s message.

5. When does the final step in effective communication take place? a) When the message is encoded and sent. b) When the message gets to the receiver. c) When the interpreted message matches the intended message. d) When feedback is initiated.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is a process of sending and receiving messages with meanings attached.

6. Getting receivers of a message to accept, support, and act consistently with the intent of a message is called __________. a) feedback * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) persuasion c) reception d) conversation Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is persuasive when the receiver acts as the sender intends.

7. __________ communication occurs when the costs of the communication is minimal. a) Efficient b) Effective c) Transactional d) Transmission Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is efficient when it is delivered at a low cost to the sender.

8. A received message that earns trust, respect, and integrity in the eyes of the receivers is called a(n) __________ message. a) efficient b) nonverbal c) credible d) filtered Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is persuasive when the receiver acts as the sender intends.

9. In commination process where personal bias and perception can cause the receiver of a message to misunderstand the intended meaning of the message is called: * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

a) noise. b) static. c) feedback. d) mixed messaging.

Ans: a Bloom’s: Comprehension Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

10. In your group project, you initiate the communication on who will do what part of the research. Which part of the communication process do you control in this? a) Encoding of the message b) Channel transmission of the message c) Decoding of the message d) Message feedback Ans: a Bloom’s: Application Level: Difficult Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

11. . __________ occurs when a message causes others to support it. a) Noise b) Persuasion c) Communication d) Filtering Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is persuasive when the receiver acts as the sender intends.

12. Wireless transmission is a form of a communication __________. a) bandwidth b) feedback c) channel * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

d) filter Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

13. Communication __________ is the medium used to carry a message. a) transmission b) channel c) reception d) line Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

14. Anything that interferes with the quality of the communication process is called _________. a) interference b) disruption c) noise d) confusion Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

15. Noise occurs in all of the following communication processes EXCEPT: a) Transmission b) Encoding c) Reception d) Detection Ans: d Bloom’s: Knowledge * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

16. The amount and quality of information that can be transmitted over a communication channel is called __________. a) channel richness b) proxemics c) transmission quality d) interactive capacity Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

17. A communication channel that is capable of carrying enough information to assure good personal two way communications is said to have __________. a) too much of capacity b) a high channel richness c) enough adaptability d) an open channel Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

18. The form of communication that provides the highest quality and quantity of information is ___________ communication. a) telephone b) e-mail c) face-to-face d) television Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section reference: Poor use of channels makes it hard to communicate effectively.

19. What form of communication provides the lowest quality and quantity of information? a) Telephone b) E-mail c) Face-to-face d) Postings on bulletin boards Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

20. The “richest” communication channel in the following list is: a) a memo. b) a telephone call. c) voice-mail. d) web site.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

21. Communication through gestures and body language is called __________ communication. a) alternate b) nonverbal c) silent d) poor Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Failure to spot nonverbal signals makes it hard to communicate effectively. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

22. Of the following, which is NOT an example of nonverbal communication? a) Hand movements b) Facial expressions c) Eye contact d) Written memo Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Failure to spot nonverbal signals makes it hard to communicate effectively.

23. When words communicate one message while actions, body language, or appearance communicates another, the receiver is likely getting a __________. a) communication channel b) clear message c) mixed message d) nonverbal Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Failure to spot nonverbal signals makes it hard to communicate effectively.

24. As an Americans Joanna has always been taught to look others in the eye to convey honesty. However, working with people from other cultures, she is finding that they are uncomfortable with this practice and creates __________. a) honest business b) filtering communication c) feedback loop d) mixed messaging Ans: d Bloom’s: Application Level: Medium Learning Objective 2: Identify the major barriers to effective communication. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Failure to spot nonverbal signals makes it hard to communicate effectively.

25. If Susan is intentionally distorting information in order to make it more favorable to her boss, she is engaging in which of these? a) Perception b) Filtering c) Noise d) Transmission Ans: b Bloom’s: Application Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Status differences make it hard to communicate effectively.

26. Jerry, the production manager at Good Cookies LLC, in order to look good for his upcoming performance appraisal, has slightly overstated the month’s output in his monthly report. Jerry is guilty of __________. a) filtering b) mixed messaging c) active listening d) downward manipulation Ans: a Bloom’s: Application Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Status differences make it hard to communicate effectively.

27. What is called when the receiver of a message is takes action to help the sender say what he or she really means? a) Verbal support b) Feedback c) Active listening d) Filtering Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Active listening helps people say what they really mean.

28. A manager, who is paraphrasing and thinking about what someone else is saying in order to encourage them to clarify what they mean, is using a communication technique called __________. a) mixed messaging b) active listening c) filtering d) constructive feedback Ans: b Bloom’s: Comprehension Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Active listening helps people say what they really mean.

29. Which of the following is not one of the five rules of active listening? a) Responding to feelings b) Listening for feelings c) Focusing just on the nonverbal cues d) Listening for message content Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Active listening helps people say what they really mean.

30. In addition to listening to the words that someone is saying, it is also important to listen for their __________. a) encouragement b) accent c) remarks d) feelings Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Active listening helps people say what they really mean. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

31. __________ is the process of telling someone else how you feel about something that person said or did. a) Active listening b) Nonverbal communication c) Noise d) Feedback Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Constructive feedback is specific, timely, and relevant.

32. In giving feedback, one should avoid: a) being specific. b) worrying about timing. c) being threatening. d) having valid comments.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Constructive feedback is specific, timely, and relevant.

33. Which of the following should NOT be done when giving constructive feedback? a) Being direct b) Giving a lot of information as quickly as you can c) Providing timely information d) Being specific Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Constructive feedback is specific, timely, and relevant.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

34. __________ involves being honest and openly sharing accurate and complete information. a) Corporate communication b) Communication transparency c) Glass door communication d) Active listening Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Transparency and openness ensure that accurate and timely information is shared.

35. At Trapp, Inc., a private investment firm, employees are provided with essential financial information. If employees want to know what others are making at the firm, all they need to do is ask the chief financial officer. This is an example of: a) open-book management. b) corporate literacy. c) social capital communication. d) active listening.

Ans: a Bloom’s: Application Level: Difficult Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Transparency and openness ensure that accurate and timely information is shared.

36. Johnny wants to learn about the way people use space to communicate. He should study __________. a) bandwidth b) channel richness c) space technology d) proxemics Ans: d Bloom’s: Application Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Office spaces can be designated to encourage interaction and communication. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

37. Japan has a population of about 130 million in an area the size of California. As a result the Japanese highly value their space and use every square meter wisely. This would be an example of __________. a) ethnocentrism b) corporate culture c) proxemics d) geographical distribution Ans: c Bloom’s: Comprehension Level: Difficult Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Office spaces can be designated to encourage interaction and communication.

38. The __________ uses computer technologies to transmit information around informal networks inside and outside of organizations. a) computer transparency b) gossip channel c) electronic grapevine d) information hub Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Appropriate use of technology can facilitate more and better communication.

39. The tendency to consider one’s culture superior to any other is called __________. a) culturalism b) cultural etiquette c) ethnocentrism d) bad manners Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

40. James is taking a class on cross-cultural management where he is learning about the use of appropriate manners and behaviors in cross-cultural situations. James is learning about which of these? a) Ethnocentricity b) Positive feedback c) Cultural etiquette d) Cultural globalization Ans: c Bloom’s: Application Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication.

41. Jessica is on a business trip to Japan. She knows that the Japanese are uncomfortable with long eye to eye contact and she purposely avoids using it with her Japanese hosts. In this example, Jessica is practicing __________. a) ethnocentricity b) positive feedback c) cultural etiquette d) cultural globalization Ans: c Bloom’s: Application Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication.

42. ___________communication earns trust, respect, and integrity in the eyes of others. a) Good b) Credible c) Effortless d) Efficient Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: What is communication and when is it effective?

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

43. The ability to inspirationally persuade and motivate others is known as: a) credibility. b) leadership. c) inspiring. d) charisma.

Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver acts as the sender intends

44. ________________ leadership tactics are communication techniques people use to make themselves more “leader like” and be perceived by others as influential and trustworthy. a) Persuasive b) Credible c) Effective d) Charismatic Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver acts as the sender intends

45. All of the following are essential ingredients of successful presentation EXCEPT: a) being professional. b) adding the right amount of polish. c) counting on the internet. d) supporting your points.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Poor written or oral expression makes it hard to communicate effectively

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

46. Communication can be hindered by all of the following EXCEPT: a) poor use of channels. b) poor written or oral skills. c) spotting nonverbal signs d) status differences Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

True/False

47. The ability to inspirationally persuade and motivate others is known as persuasion.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver acts as the sender intends

48. Credible leadership tactics are communication techniques people use to make themselves more “leader like” and be perceived by others as influential and trustworthy.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver acts as the sender intends

49. Managers can be considered information nerve centers.

Ans: True * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: What is communication and when is it effective?

50. Our ability to lead is often judged by our skill in communication.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: What is communication and when is it effective?

51. Generally, American managers rate fairly high in communication skills.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: What is communication and when is it effective?

52. Research finds that with all the other college material to learn in business, fortunately, writing skills are generally fully developed in high school and need no further work.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: What is communication and when is it effective?

53. . As much as communication is part of our everyday lives, we often fail in using it to our best advantage.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver understands the sender’s messages.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

54. The two key measures of good communication are effectiveness and efficiency.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver understands the sender’s messages.

Section Reference: Communication is efficient when it is delivered at low cost to the sender.

55. Interestingly, recruiters give networking skills low priority when screening candidates for college internships and first jobs.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is persuasive when the receiver acts as the sender intends.

56. In communication theory, noise is anything that interferes with the communication process.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

57. Channel richness is determined by the efficiency of the communication channel.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Poor use of channels makes it hard to communicate effectively.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

58. The majority of a message’s impact on the receiver is determined by nonverbal communications.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Failure to spot nonverbal signals makes it hard to communicate effectively.

59. Message filtering helps to ensure that only the relevant messages get to management.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Status differences make it hard to communicate effectively.

60. Active listening requires that the person listening pay close attention and remain quiet.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Active listening helps people say what they really mean.

61. Any feedback, so long as it is well-intentioned, will improve behaviors.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Constructive feedback is specific, timely, and relevant.

62. Research shows that it is a bad idea for managers to use social networking sites, such as Facebook, to keep communication channels open with employees because these sites are too informal. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Appropriate use of technology can facilitate more and better communication.

63. The way an office is laid out can actually impact the communication process.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Office spaces can be designed to encourage interaction and communication.

64. The tendency to consider one’s culture superior to others is call racism.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication.

65. With modern computer protections, it is safe to assume that your e-mail is private, even at work.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Appropriate use of technology can facilitate more and better communication.

66. To be successful in cross-cultural communication, you have to be sensitive to others and willing to learn how others see things.

Ans: True Bloom’s: Knowledge * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural commination.

67. Chinese and Japanese employees may show anger only in their body language, a point often missed by Westerners.

Ans: False Bloom’s: Knowledge Level: Difficult Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural commination.

Fill-in-the-Blank

68. __________ is the capacity to attract support and help from others in order to get things done.

Ans: Social capital Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: What is communication and when is it effective?

69. __________ is the interpersonal process of sending and receiving symbols with meanings attached to them.

Ans: Communication Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is a process of sending and receiving messages with meanings attached.

70. A(n)_________ is the medium through which a message is carried.

Ans: communication channel * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Poor use of channels makes it hard to communicate effectively.

71. __________ communication occurs when a minimum of resources are expended.

Ans: Efficient Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is efficient when it is delivered at low cost to the sender.

72. In order to persuade others, the speaker must have __________, being trusted, respected, and seen as having integrity.

Ans: credibility Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is persuasive when the receiver acts as the sender intends.

73. __________ is the capacity of a communication channel to effectively carry information.

Ans: Channel richness Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Poor use of channels makes it hard to communicate effectively.

74. The intentional distortion of information to make it appear favorable to the message recipient is called __________.

Ans: filtering Bloom’s: Knowledge Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Statue differences make it hard to communicate effectively. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

75. __________ is the process of indicating to others how you feel about what they have said or done.

Ans: Feedback Bloom’s: Knowledge Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Constructive feedback is specific, timely, and relevant.

76. __________ involves being honest and openly sharing accurate and complete information.

Ans: Communication transparency Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Transparency and openness ensure that accurate and timely information is shared.

77. The study of the way we use space is called ______________.

Ans: proxemics Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Office spaces can be designed to encourage interaction and communication.

78. __________ is the tendency to consider one’s own culture superior to any other.

Ans: Ethnocentrism Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

79. A basic awareness of the appropriate manners and behaviors to use when one is communicating with people from other countries is called __________.

Ans: cultural etiquette Bloom’s: Knowledge Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication.

80. _______________ is ability to inspirationally persuade and motivate others.

Ans: Charisma Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver acts as the sender intends

81. Communication techniques people use to make themselves more “leader like” and be perceived by others as influential and trustworthy are called _________________.

Ans: Credible leadership tactics Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver acts as the sender intends

Essay

82. Explain the “trade-off” involved in working toward effective and efficient communication.

Ans: Effectiveness means doing whatever it takes to ensure complete understanding, while efficiency focuses on making the contacts while expending the smallest amount of resources. In other words, the goals are somewhat in conflict. One clear way to see this is to use channel richness. Effectiveness is at the face-to-face end of the scale, while efficiency is at the mass communication end.

Bloom’s: Comprehension Level: Medium * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver understands the sender’s messages; Communication is efficient when it is delivered at low cost to the sender.

83. What is “noise” and how can it negatively impact communication?

Ans: Noise is anything that detracts from communication, including language or cultural differences, inappropriate communication channels that don’t support the message, poor quality expression, or incongruent (mixed) non-verbal messages.

Bloom’s: Comprehension Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

84. Define the communication process including each step in the process.

Ans: The components of the communication process are a sender, a receiver and a communication channel. The steps in the process are 1) The sender encodes the message to be communicated. 2) The message is sent via the selected communication channel. 3) The receiver receives the message. 4) The receiver decodes the message. 5) The receiver provides feedback to the sender. Throughout the process, noise may cause the quality of communication to be reduced.

Bloom’s: Analysis Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is a process of sending and receiving messages with meanings attached.

85. What is channel richness? Describe the relationship between channel richness and the various means of communicating.

Ans: Channel richness is the amount and quality of information that can be transmitted over a communication channel. A high rich channel will provide personal two way communication, while a low rich channel will be limited to impersonal one way communication. However, the low rich channel, although less effective, is likely to be more efficient, while the high rich channel is likely to be more effective but less efficient.

Examples of low rich channels are postings, memos, and letters. Examples of high rich channels are face to face conversations and telephones. E-mails fall in the middle.

Choosing the communication channel is an important part of the communication process.

Bloom’s: Synthesis Level: Medium Learning Objective 2: Identify the major barriers to effective communication. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Poor use of channels makes it hard to communicate effectively.

86. What is proxemics and why is it important?

Ans: Proxemics is the study of the way we use space. It is important because the way we use space can have a very strong influence on our ability to communicate effectively.

Bloom’s: Evaluation Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Office spaces can be designed to encourage interaction and communication.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Chapter 16: Diversity and Global Cultures Test Bank Multiple Choice

1. A company that is based on pluralism and operates with inclusivity and respect for diversity is called a __________ organization. a) multinational b) multicultural c) business franchise d) government subsidized Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

2. __________ is a word used to describe differences in people’s race, religion, age, and other factors. a) Dichotomy b) Detail c) Diversity d) Departmental Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

3. Leadership in an organization commits the organization to hiring and advancing minorities and women. This is called __________. a) diversity exclusion b) ethnocentrism c) pluralism d) affirmative action

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

4. How open an organization is to hiring anyone who can perform a specific job is called __________. a) exclusivity b) discrimination c) diversity d) inclusivity Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

5. The problem of high employee turnover among minorities and women has been called __________. a) the revolving door syndrome b) the glass ceiling effect c) ethnocentrism d) an organizational subculture Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

6. Which of the following is not a characteristic of a multicultural organization? a) Pluralism b) Structural integration

c) Informal network integration d) Prejudice Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

7. Jason has always argued that his membership group is superior to every other one.

This is known as: a) ethnocentrism. b) ethics. c) self-involvement. d) self-indulgent.

Ans: a Bloom’s: Application Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

8. Organizational __________ are groupings of people based on shared demographic and job identities. a) departments b) divisions c) subcultures d) hierarchies Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

9. The three types of subcultures are ____________, ethnic, and gender. a) historical

b) national c) occupational d) international Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

10. Bill is at a business dinner meeting in India. When his Indian associates all light up a cigarette after the meal, Bill lectures them on the evils of smoking based on his cultural values and walks out of the restaurant. Bill is guilty of __________. a) subcultural preference b) ethnocentrism c) monochromic behavior d) polychromic behavior Ans: b Bloom’s: Application Level: Difficult Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

11. The problem with subcultures in organizations is that: a) they tend to form informally. b) ethnocentric tendencies cause members to look down on outsiders. c) they are formed by individuals with similar characteristics. d) members identify more closely to them than to the larger organization.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

12. The __________ is a hidden barrier that restricts the advancement of women and minorities into senior level management positions. a) invisible wall b) glass ceiling c) affirmative action d) human resource department Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and woman suffer diversity bias in many situations.

13. Why are Glass ceilings problematic? a) Unfortunately, power is distributed equally throughout organizations. b) Women have finally erased the barrier; minorities still face it. c) They encourage women and minorities to stay in an organization. d) Most top executives are older, white males and there is little opportunity for others.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and woman suffer diversity bias in many situations.

14. __________ occurs when minorities adopt the characteristics of the majority culture in order to succeed. a) Ecological fallacy b) Transformation c) Cultural diversity d) Biculturalism Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and woman suffer diversity bias in many situations.

15. An organization that is mature about diversity should be able to answer a confident “yes” to all of the following questions EXCEPT: a) Do you understand diversity concepts? b) Do you accept responsibility for improving your performance? c) Are you willing to learn continuously? d) Are you willing to encourage glass ceiling?

Ans: d Bloom’s: Comprehension Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

16. The three steps in Roosevelt Thomas’ continuum of leadership approaches to diversity are affirmative action, __________, and valuing diversity. a) leadership policy b) diversity regulations c) managing diversity d) equal employment Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

17. Building an inclusive work environment that allows everyone to reach his or her potential is called __________. a) employee development b) open management c) management training d) managing diversity Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

18. Sara, the director of human resources at Worldwide Products Inc., is continually in the process of training managers on anti-discriminatory practices and establishing an inclusive diverse environment at the company. Sara is practicing __________. a) discrimination b) management diversity c) value management d) biculturalism Ans: b Bloom’s: Application Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

19. According to Roosevelt Thomas, affirmative action has __________ the desire of minorities to assimilate into the workforce. a) increased b) decreased c) had no effect on d) equaled Ans: b Bloom’s: Knowledge Level: Difficult Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

20. ___________ is the most productive end of the diversity leadership continuum which involves active inclusion of diversity in organizational operations with a goal of multiculturalism. a) Workplace diversity b) Managing diversity c) Affirmative action d) Biculturalism Ans: b Bloom’s: Knowledge

Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

21. The confusion and discomfort that a person experiences when in an unfamiliar culture is called __________. a) cultural diversity b) ecological fallacy c) proxemics d) culture shock Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

22. Vince, a middle manager at United Imports Inc., is in Japan on a business trip to visit a major supplier. After work, his Japanese hosts take him to a Japanese barbecue restaurant. Two of the main entrees are horsemeat and sparrow with the heads on.

Vince is very uncomfortable with these dishes and does not know what to do. Vince is suffering a condition known as ________. a) culture shock b) an upset stomach c) diplomacy d) bad food Ans: a Bloom’s: Application Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

23. The stages of adjusting to a new culture do not include: a) irritation and anger. b) honeymoon.

c) reality. d) power and distance.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

24. The first stage in adjusting to a new culture is __________. a) irritation and anger b) honeymoon c) confusion d) reality Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

25. What is the last stage in adjusting to a new culture? a) Irritation and anger b) Honeymoon c) Reality d) Small victories Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

26. Bryan has just moved to Japan from the United States. He currently feels overwhelmed by the new culture, and it has become a target of his criticism. Bryan is in what stage of adjusting to a new culture? a) Confusion

b) Irritation and anger c) Reality d) Small victories Ans: b Bloom’s: Application Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

27. According to a survey done by FDS International of the United Kingdom, the country with best overall employee morale is ___________. a) the United States b) Germany c) the Netherlands d) Japan Ans: c Bloom’s: Knowledge Level: Difficult Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultural intelligence is the capacity to adapt to foreign cultures.

28. Cultural ____________ is the ability to adapt to new cultures. a) shock b) proxemics c) training d) intelligence Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultural intelligence is the capacity to adapt to foreign cultures.

29. Which of the following is not an aspect of cultural intelligence? a) High cultural self-awareness b) Flexibility in your dealings

c) Willingness to learn about the unfamiliar d) Consistency and commitment to maintain your home cultural behaviors Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultural intelligence is the capacity to adapt to foreign cultures.

30. A culture that includes nonverbal signals and context when interpreting communication is classified as a(n) __________. a) individualistic culture b) high-context culture c) collectivistic culture d) low-context culture Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

31. A(n) ___________ culture is one that relies mainly on the written and spoken word. a) individualistic culture b) high-context culture c) ethnocentric culture d) low-context culture Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

32. In a(n) ___________culture, people do one thing at a time. a) individualistic b) high-context c) low-context d) monochronic

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

33. A culture in which people are multi-tasking is called a __________ culture. a) group b) polychronic c) diverse d) high-context Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

34. In a high context culture, such as Italy, one would expect to find __________. a) high uncertainty avoidance b) monochromic behavior c) a high degree of nonverbal communication d) a low power distance rating Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

35. _________ is the study of how people use interpersonal space. a) Ethnocentrism b) Inter-space c) Proxemics d) Ecology

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

36. Which of the following is NOT one of Hofstede’s dimensions of national cultures? a) Power distance b) Uncertainty avoidance c) Time orientation d) Educational background Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

37. According to Hofstede’s dimensions of national cultures, which of the following is the degree to which a society accepts unequal distribution of power? a) Uncertainty avoidance b) Individualism-collectivism c) Power distance d) Time orientation Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

38. According to Hofstede’s dimensions of national cultures, __________ is the degree to which a society tolerates uncertainty. a) uncertainty avoidance b) individualism-collectivism c) power distance d) time orientation

Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

39. According to Hofstede’s dimensions of national cultures, __________ is the degree to which a society emphasizes individuals and their self-interests. a) uncertainty avoidance b) individualism-collectivism c) power distance d) time orientation Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

40. A member of one of your student team is from a collectivistic culture. She is more likely to behave in which of the following ways? a) Step forward to be the team leader b) Offer to lead the team presentation c) Confront a fellow member who is not making a “fair-share” contribution d) Work diligently on their part of the project with little fanfare Ans: d Bloom’s: Comprehension Level: Difficult Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

41. The most highly individualistic country, according to Hofstede’s sample, is __________. a) Japan b) Germany

c) China d) the United States Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

42. According to Hofstede’s dimensions of national cultures, which is the degree to which a society values assertiveness and materialism? a) Uncertainty avoidance b) Individualism-collectivism c) Power distance d) Masculinity-femininity Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

43. According to Hofstede’s dimensions of national cultures, the degree to which a society emphasizes short-term or long-term goals is called: a) uncertainty avoidance. b) individualism-collectivism. c) power distance. d) time orientation.

Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

44. Hofstede was concerned about the tendency for people to assume that generalized cultural values could be applied to all members of a culture. He called this tendency __________. a) general approach b) ecological fallacy c) equal distribution d) unreasonable expectation Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

True/False

45. Diversity can provide competitive advantage for a firm and is easy to implement.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: There is a business case for diversity.

46. The positive model for diversity is to achieve masculine status as an organization.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

47. Subcultures are necessary to achieve organizational diversity.

Ans: False

Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

48. Ethnocentrism is necessary to establishing organizational diversity.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

49. Harris and Conference Board polls report that younger workers tend to be more satisfied with their jobs than older workers.

Ans: False Bloom’s: Knowledge Level: Difficult Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

50. Awareness of the glass ceiling has resulted in a significant improvement in the number of women in senior management positions.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and women suffer diversity bias in many situations.

51. Research suggests that biculturalism is a positive step in resolving the diversity issue.

Ans: False Bloom’s: Knowledge

Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and women suffer diversity bias in many situations.

52. Affirmative action is the most effective and efficient way to implement and benefit from diversity.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

53. The stages of adjustment to culture shock are a series of steady improvements after the initial stage of confusion.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Culture shock comes from discomfort in cross-cultural situations.

54. Hall argues that we need to be aware of more than just the verbal languages of other countries; his emphasis on “silent languages” refers to understanding communication context, the perspective of time, and the use of space.

Ans: True Bloom’s: Knowledge Level: Difficult Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

55. Culture shock deals with the ability to adapt to new cultures.

Ans: False

Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultural intelligence is the capacity to adapt to foreign cultures.

56. Another way to view monochronic cultures is as a group of flexible multi-taskers.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

57. A culture that is high in uncertainty avoidance would be known for its entrepreneurial spirit.

Ans: False Bloom’s: Analysis Level: Difficult Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

58. According to Hofstede’s five dimensions of national cultures, the United States is more accepting of uncertainty than is Japan.

Ans: True Bloom’s: Analysis Level: Difficult Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

59. Proxemics is the study of how people use personal time to communicate.

Ans: False

Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

Fill-in-the-Blank

60. _________ includes race, gender, age, and other individual differences.

Ans: Diversity Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: There is a business case for diversity.

61. ____________ is the belief that one’s membership group or subculture is superior to all others.

Ans: Ethnocentrism Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

62. Organizational __________ are informal groupings of people with shared identities within a larger organization.

Ans: subcultures Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

63. ______ subcultures form among people doing the same kinds of work.

Ans: Occupational Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

64. The barrier to women and minorities that manifests itself in the lack of diversity in the upper ranks of organizational management is known as the __________.

Ans: glass ceiling Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and women suffer diversity bias in many situations.

65. An effort made by women and minorities to “fit in” by taking on behaviors and characteristics displayed by the majority is known as ___________.

Ans: biculturalism Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

66. __________ is building an inclusive work environment that allows everyone to reach his or her potential.

Ans: Managing diversity Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

67. The feeling of confusion and discomfort felt in dealing with an unfamiliar culture is called ____________.

Ans: culture shock Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Culture shock comes from discomfort in cross-cultural situations.

68. The ability to adapt and adjust to new cultures is a reflection of one’s __________.

Ans: cultural intelligence Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultural intelligence is the capacity to adapt to foreign cultures.

69. __________ is Hall’s term for how people use interpersonal space to communicate.

Ans: Proxemics Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

70. 72. In __________ cultures people tend to do one thing at a time.

Ans: monochronic Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

71. Regarding diversity, the concept of __________ is similar to that of stereotyping.

Ans: ecological fallacy Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

Essay

72. Beyond the legal issues, make the business case for diversity.

Ans: A potential source of competitive advantage, diverse employees give management an “insider” view to the thinking of the different groups in the marketplace. In addition, diversity provides a variety of perspectives for problem-solving and innovation. Diversity opens the talent pool for hiring to the whole human race! Also, employees who feel included are more likely to stay with their employers and recommend them to others.

Research shows that companies with a greater percentage of women on their boards outperform those whose boards have the lowest female representation.

Bloom’s: Evaluation Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: There is a business case for diversity.

Section Reference: Managing diversity should be a top leadership priority.

73. While the value of diversity is obvious, what makes it so difficult to manage in global companies?

Ans: The various differences that we seek to include involve value sets that can clash. For example, consider the different approaches to the role of women. Also consider the relevance of individual competence versus social status in promotions among the cultural dimensions studied by Hofstede and the “silent” languages of cultures recognized by Hall.

Bloom’s: Evaluation Level: Medium

Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space; Hofstede identifies five value differences among national cultures.

74. Edward T. Hall, an anthropologist, believes that cultures have “silent” languages that are found in their approach to communications context, time, and space. What are these cultural languages? Describe each.

Ans: Context cultures include low-context and high-context. Low-context cultures communicate primarily through voice and written communications. High-context cultures rely on nonverbal and situational cues as well as voice and written communications.

Time cultures also have two subsets. They are monochronic cultures and polychronic cultures. In monochromic cultures, people tend to do one thing at a time. In polychronic cultures, people tend to multitask doing many different things at once.

Space cultures, how people use individual space, are defined by the field of proxemics.

Some cultures, the Japanese for example, have very little space and therefore value space very highly. Other cultures, such as Americans, have a lot of space and are therefore less concerned with how or how much of it they use.

Bloom’s: Comprehension Level: Difficult Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

75. Hofstede identified five value differences among national cultures. What are they?

Define each of them.

Ans: Hofstede’s five value differences are power distance, uncertainty avoidance, individualism-collectivism, masculinity-femininity, and time orientation.

Power distance is the degree to which a society accepts unequal distribution of power.

Uncertainty avoidance is the degree to which a society tolerates risk and uncertainty.

Individualism-collectivism is the degree to which a society emphasizes individuals and their self-interests.

Masculinity-femininity is the degree to which a society values assertiveness and materialism.

Time orientation is the degree to which a society emphasizes short term and long term goals.

Bloom’s: Comprehension Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

76. Define culture shock and the stages that one experiences as part of it.

Ans: Culture shock is the confusion and discomfort that a person experiences when in an unfamiliar environment. The five stages of culture shock are: Confusion – On first contact; anxious, and uncomfortable feeling.

Small victories – Adjusting to the situation as you become more familiar with it.

Honeymoon – A good feeling as you better understand and appreciate the new culture.

Irritation and anger – Based on the negatives of the culture outweighing the positives.

Reality – Learning to live with the negative aspects while enjoying the positive aspects.

Bloom’s: Comprehension Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Culture shock comes from discomfort in cross-cultural situations.

Chapter 17: Globalization and International Business Test Bank Multiple Choice

1. __________ is used to describe the interdependence among elements of the global economy. a) Nationalization b) Industrialism c) Globalization d) Internationalism Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economics.

2. The creation of domestic jobs by foreign employers is called __________. a) insourcing b) outsourcing c) international operations d) strategic alliances Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economics.

3. A(n) __________economy is one in which resources, markets, and competition are worldwide in scope. a) foreign b) domestic c) outsourced d) global

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economics.

4. A company that conducts business across national boundaries is called a(n) __________. a) global economy b) international business c) trade association d) conglomerate Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization creates a variety of international business opportunities.

5. ABC manufacturing conducts commercial transactions across national boundaries.

ABC would be classified as which of these? a) Large business b) Franchised c) International d) Foreign licensed company Ans: c Bloom’s: Application Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization creates a variety of international business opportunities.

6. Doing business internationally can be justified by all of these EXCEPT: a) expanding profit potential. b) gaining access to more customers. c) reducing access to capital.

d) lowering the cost of materials and supplies.

Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization creates a variety of international business opportunities.

7. What is the term used to describe the selling of products to foreign countries? a) Importing b) Greenfield venture c) Outsourcing d) Exporting Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

8. ABC Manufacturing, a USA based company, buys products from China for sale in U.S. markets. This practice refers to which of these? a) Importing b) Insourcing c) Exporting d) Franchising Ans: a Bloom’s: Application Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

9. Businesses go global for all of the following reasons EXCEPT: a) To minimize domestic customers. b) To increase profits through expanded operations. c) To increase access to low-cost, talented workers. d) To increase access to products, services, materials.

Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization creates a variety of international business opportunities.

10. Which of the following is a direct investment strategy? a) Global sourcing b) Joint ventures c) Exporting d) Licensing Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

11. Which of the following countries is the top outsourcing destination? a) Mexico b) China c) United States d) Japan Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

12. Anna has purchased the rights to make or sell another company’s products. Anna is participating in __________. a) insourcing b) outsourcing c) franchising d) licensing Ans: d

Bloom’s: Application Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

13. Global sourcing involves: a) exporting products for sale. b) purchasing materials, components, or services from around the world for local use. c) selling a foreign firm the right to make your products. d) building a plant to produce goods for sale in foreign countries.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

14. When a firm grants licenses internationally, it is giving foreign companies access to its: a) technologies, patents, or trademarks. b) facility designs and equipment. c) product ingredients. d) management systems.

Ans: a Bloom’s: Comprehension Level: Difficult Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

15. The paying of a fee to use another firm’s name, resources, and operating systems is called __________. a) licensing b) franchising c) importing d) leasing

Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

16. Which of the following operates through co-ownership with local partners? a) Franchise b) Wholly owned subsidiary c) Joint venture d) Licensed venture Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

17. ABC would like to market their products in Brazil. Armed with the design and manufacturing capability, ABC is looking for a company with the distribution channels and knowledge of the Brazil culture necessary to market their products.

ABC has decided to form a partnership with XYZ in Brazil. The company will be jointly owned and independently operated. Which of the following is ABC forming with XYZ? a) Franchise b) Joint venture c) Licensing agreement d) Operating subsidiary Ans: b Bloom’s: Application Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

18. A joint venture arrangement normally might involve all of the following EXCEPT: a) pooling of resources. b) sharing risks.

c) jointly operating the venture. d) one firm buying out the other firm.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

19. A __________ establishes a foreign subsidiary by building an entirely new operation in a foreign country. a) joint venture b) strategic alliance c) greenfield venture d) franchise Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

20. Business arrangements between firms of different nationalities are done for many reasons and in many different ways. These arrangements, whatever their structure, are called __________. a) subsidiaries b) global strategic alliances c) franchises d) licensed partnerships Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

21. A __________ is a local operation completely owned by a foreign company. a) foreign partnership b) franchise c) foreign subsidiary d) licensee Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

22. Which of the following approaches to international business offers the most control but with the greatest risk? a) Joint ventures b) Foreign subsidiary c) Importing d) Licensing Ans: b Bloom’s: Knowledge Level: Difficult Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

23. A global institution whose purpose is to promote free trade and open markets around the world is known as the ______________. a) United Markets Institute b) World Bank c) World Trade Organization d) U.S. Chamber of Commerce Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

24. If Japan receives the most favorable treatment for imports and exports with other countries, Japan is said to have a(n) ___________ status. a) international b) outsourced c) greenfield venture d) most favored nation Ans: d Bloom’s: Application Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

25. When an American business is being mistreated in foreign countries, the U.S. government can help by appealing to which of the following? a) The European Union b) The World Trade Organization c) The World Bank d) The United Nations Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

26. If Brazil applies tariffs and special treatment for local firms against foreign competition, it is known as: a) idealism. b) internationalism. c) globalism. d) protectionism.

Ans: d Bloom’s: Comprehension Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

27. A __________ is a business with extensive foreign operations in more than one country. a) conglomerate b) wholly owned subsidiary c) partnership d) multinational corporation Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Global corporations or MNC’s do substantial business in many countries.

28. All of the following are MNC complaints about host countries EXCEPT: a) profit limitations. b) overpriced resources. c) interference with government. d) exploitative rules.

Ans: c Bloom’s: Knowledge Level: Difficult Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: The actions of global corporations can be controversial at home and abroad.

29. The Foreign Corrupt Practices Act prevents U.S. firms from doing which of the following? a) Paying bribes or giving excess commissions in exchange for favors. b) Using “sweatshops” to produce goods for sale in the U.S. c) Employing child labor in plants that make goods for U.S. markets. d) From participating in unsustainable development in third world countries.

Ans: a Bloom’s: Knowledge Level: Difficult Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: managers of global corporations face a variety of ethical challenges.

30. A(n) _____________is a company that employs workers at very low wages, for long hours, and in poor working conditions. a) subsidiary b) joint venture c) MNC d) sweatshop Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: managers of global corporations face a variety of ethical challenges.

31. __________ is the full time employment of children for work normally done by adults. a) Children camp b) Child labor c) Scout camp d) Sweatshop Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: managers of global corporations face a variety of ethical challenges.

32. The problem of “currency risk” refers to: a) fluctuations in the electrical grids of foreign countries. b) terrorism or armed conflicts. c) fluctuations in foreign exchange rates. d) nationalization of foreign assets.

Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

33. ABC, a U.S. based company, operates a subsidiary in Egypt. ABC is facing the possible loss of investment and control over its assets in Egypt due to instability and political changes. ABC is facing which of these? a) Cultural integration issues b) Globalization c) Political risk d) Competitive threat Ans: c Bloom’s: Application Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

34. When Argentina’s president nationalized the oil industry without consideration for the foreign companies operating there, the loss to the foreign countries was considered a __________ risk. a) national b) currency c) global d) political Ans: d Bloom’s: Comprehension Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

35. The forecasting of political events that may impact foreign investments is called __________. a) currency analysis b) political-risk analysis c) analytical forecasting d) international forecasting Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

36. According to research from Transparency International, which of the following countries ranked #1 as the least corrupt for doing business? a) Somalia b) Spain c) USA d) New Zealand Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

37. The two main ways of organizing multinational corporations for global operations are global __________ and global __________ structures. a) economy; risk b) area; economy c) product; market d) area; product Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Organizing can be difficult in global corporations.

38. Products For You, Inc. (PFY) is an international company with five presidents in charge of its American, European, African, Asian, and the ROW (rest of the world) operations. PFY is using a global __________ structure. a) area b) matrix c) product d) vertical Ans: a Bloom’s: Application Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Organizing can be difficult in global corporations.

39. ______________ managers are those who are aware of international developments and competent in working across cultures. a) Senior b) National c) Global d) Foreign Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Leading is challenging in global corporations.

True/False

40. In her book The Travels of a T-Shirt in the Global Economy, economist Pietra Rivoli tracks a t-shirt that she bought while on a vacation to Florida to realize that it was truly 100 percent U.S. originated and made throughout its journey.

Ans: False Bloom’s: Knowledge Level: Difficult Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: How does globalization affect international business?

41. In a global economy, resources, markets and competition are worldwide in scope.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economies.

42. The main difference between domestic and international businesses is that the latter crosses national boundaries.

Ans: True Bloom’s: Knowledge

Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization creates a variety of international business opportunities.

43. Importing involves buying goods from foreign companies for sale overseas.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

44. In global sourcing, firms purchase and sell goods and services around the world for local use.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

45. A foreign subsidiary is a local operation in which a foreign firm owns at least 51%.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

46. Domestic franchising involves selling the right to use your name and operating methods to foreign companies.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

47. A foreign subsidiary can be created either by buying out an existing firm or by building a new firm from scratch.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

48. One of the challenges to international business is the cultural relativism forced upon them by local laws and customs.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: The actions of global corporations can be controversial at home and abroad.

49. If you purchase the latest CD from your favorite artist or the latest blockbuster DVD for a very low price while traveling internationally, you are likely facilitating the violation of intellectual property rights.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

50. There are 90 members in the World Trade Organization.

Ans: False Bloom’s: Knowledge

Level: Difficult Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

51. For all practical purposes, a multinational corporation is the same as a transnational corporation.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Global corporations or MNC’s do substantial business in many countries.

52. Most multinational corporations retain strong national identities even while operating around the world.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Global corporations or MNC’s do substantial business in many countries.

53. Host countries always complain that MNCs do not have respect for local customs.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: The actions of global corporations can be controversial at home and abroad.

54. The Foreign Corrupt Practices Act can actually put U.S. firms at a competitive disadvantage in certain areas of the world.

Ans: True

Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Managers of global corporations face a variety of ethical challenges.

55. Currency risk means that the amount you actually receive for your sale of products or services may vary depending on currency fluctuations.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

56. The most common multinational organizational structures are done by product and area.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Organizing can be difficult in global corporations.

57. Being a loner, acting uncooperative, and being irritable are considered universal inhibitors of leadership success.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Leading is challenging in global corporations.

Fill-in-the-Blank

58. Shifting local jobs in foreign locations to take advantage of lower-wage labor in other countries is called _____________.

Ans: outsourcing Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economies.

59. The process of growing interdependence among elements of the global economy is known as _____________.

Ans: globalization Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economies.

60. The form of international business involving the sale of domestically made goods in foreign markets is called _____________.

Ans: exporting Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

61. A(n) __________ operates in a foreign country through co-ownership with local partners.

Ans: joint venture Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

62. A local operation that is completely owned and controlled by a foreign company is called a(n) __________.

Ans: foreign subsidiary Bloom’s: Knowledge Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

63. The acronym WTO stands for the __________.

Ans: World Trade Organization Bloom’s: Knowledge Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

64. MNC is an acronym that stands for __________.

Ans: multinational corporation Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Global corporations or MNCs do substantial business in many countries.

65. __________ involves the use of laws and politically-driven tariffs to shield a country’s domestic businesses from foreign competitors.

Ans: Protectionism Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: The actions of global corporations can be controversial at home and abroad.

66. . __________ is the term used to describe places in which employees are given low wages for long hours in poor, and often unsafe, working conditions.

Ans: Sweatshop

Bloom’s: Knowledge Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Managers of global corporations face a variety of ethical challenges.

67. ______________is the possible loss of profits because of fluctuations in exchange rates.

Ans: Currency risks Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

68. __________ forecasts how political events may impact foreign investments.

Ans: Political-risk analysis Bloom’s: Knowledge Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

Essay

69. What are the pros and cons of conducting business internationally?

Ans: Pros – profit potential, access to new consumer and capital markets, lower material and labor costs. Cons – varying laws and regulations, political risks, currency risks, management challenges.

Bloom’s: Evaluation Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economics.

Section Reference: Globalization creates a variety of international business opportunities.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

70. Define franchising and licensing. Explain the difference.

Ans: Franchising involves paying a fee for the rights to use another company’s name and operating methods. Licensing involves paying a fee for the rights to make or sell another company’s products. The difference is in the support provided and the use of the selling companies name and operating methods.

Bloom’s: Analysis Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

71. Define a joint venture and a foreign subsidiary and the differences between them.

Ans: A joint venture is a partnership between two companies. The purpose of the partnership is to combine the resources of the partners in order to accomplish business objectives that neither company could accomplish alone. The partnership is usually in the form of a newly formed company called a joint venture. Each of the two partners owns a part of the new joint venture.

A foreign subsidiary is a company in a foreign land that is wholly owned by the parent company. There is no partnership.

Joint ventures have the advantage that the risks, resources, and rewards of the venture are shared. The disadvantage is that neither partner has complete control over the joint venture’s operations. This can result in difficult management situations. On the other hand, the foreign subsidiary has none of these problems, but the costs and risks are much higher than for a joint venture.

Bloom’s: Analysis Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

72. Define and differentiate between multinational and transnational corporations.

Ans: Both multinational and transnational corporations are international businesses. They both have extensive operations in foreign countries. The difference is in how they think.

Multinational corporations tend to think locally in that they think of themselves as American companies or German companies, etc. Transnational companies like to think of themselves as global companies without an identifiable country of origin.

Bloom’s: Analysis

Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Global corporations or MNCs do substantial business in many countries.

Chapter 18: Entrepreneurship and Small Business Test Bank Multiple Choice

1. A(n) __________ person is someone who is willing to pursue opportunities that others see as problems or threats. a) business person b) fool c) entrepreneur d) banker Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

2. People aged __________ are the most entrepreneurially active in the United States. a) 25-34 b) 45-54 c) 55-64 d) 75-84 Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

3. __________ is dynamic risk-taking, creative, and growth-oriented behavior. a) Business b) Capitalism c) Investing d) Entrepreneurship Ans: d Bloom’s: Knowledge Level: Medium

Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

4. The first person to enter a new market is said to have a __________. a) first mover advantage b) good time c) government subsidized business loss d) early entry disadvantage Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

5. Sam is an employee in a large corporation, Dean, Inc. who takes significant risk and display entrepreneurial behavior. Sam is referred to as which of these? a) Entrepreneurs b) Senior managers c) Intrapreneurs d) Venture capitalists Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

6. Research indicates that while not absolutely required, most entrepreneurs have which of the following trait(s)? a) An external locus of control b) A low need for achievement c) A discomfort with uncertainty d) Self-confidence and self-reliance Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar personality traits.

7. When people start new businesses because they have few or no other options, it is called __________. a) socialism-based entrepreneurship b) capitalism-driven business c) minority syndrome business d) necessity-based entrepreneurship Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

8. Potential entrepreneurs often possess all of the following characteristics EXCEPT: a) a high need for achievement. b) an intolerance for ambiguity. c) flexibility. d) a high energy level.

Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar personality traits.

9. Minority entrepreneurs create almost __________ million jobs. a) 2 b) 6 c) 10 d) 20 Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

10. The fastest growing segment in small business ownership is __________ owned businesses.

a) women b) Hispanic-American c) African-American d) white American Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

11. Which of these is targeted at solving the problems of the poor and disadvantaged? a) Minority entrepreneurship b) Social entrepreneurship c) Disadvantaged entrepreneurship d) Welfare entrepreneurship Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

12. The main difference between “social entrepreneurs” and general business entrepreneurs is that social entrepreneurs have a) a higher tolerance for ambiguity. b) a desire to take greater risks. c) a higher degree of self-motivation. d) a drive toward a social mission.

Ans: d Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

13. The U.S. federal agency responsible for defining and supporting small businesses is the __________. a) SBA

b) NSA c) SEC d) FDA Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

15. 87% of small businesses employ less than __________ people. a) 5 b) 10 c) 15 d) 20 Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

16. According to the U.S. government, a small business is a __________. a) publicly held company b) new venture c) corporation d) privately owned and operated business Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

17. Small business makes up what percentage of U.S. companies? a) 60 b) 70 c) 80 d) 90

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

18. Small businesses employs over __________ percent of America’s private workers. a) 50 b) 66 c) 75 d) 90 Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

19. In which of business life-cycle a business sees major growth and an increase in business complexity? a) Majority stage b) Breakthrough stage c) Post maturity stage d) Birth stage Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses must master three life-cycle stages.

20. At what stage in the life-cycle of a business is professional management experience the most important? a) Birth b) Breakthrough c) Maturity d) Death Ans: b Bloom’s: Knowledge

Level: Difficult Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses must master three life-cycle stages.

21. Which stage of the life-cycle of an entrepreneurial firm involves refining the strategy, investing wisely, and staying flexible? a) Birth b) Breakthrough c) Maturity d) Death Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses must master three life-cycle stages.

22. Most businesses in the U.S. are controlled by: a) families. b) governments. c) big corporations. d) other small businesses.

Ans: a Bloom’s: Knowledge Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

23. What should a firm in the “birth” stage of its life cycle focus on? a) Becoming profitable b) Refining the strategy c) Finding the money d) Growing Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses must master three life-cycle stages.

24. Family businesses have many problems. The issue, who will run the business when the current family head leaves, is called a __________ problem. a) follow through b) succession c) follow up d) resignation Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

25. According to the U.S. government, what percent of small businesses fail in their first five years? a) 60% b) 70% c) 80% d) 90% Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

26. Common reasons for small business failures include all of the following EXCEPT: a) lack of experience b) lack of strategy c) poor financial controls d) moderate growth rate Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Most small businesses fail within five years.

27. A(n) ____________plan determines how the leadership of a family owned business will transition. a) business b) operations c) succession d) strategic Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

28. A real indication of a problem with family owned businesses is that only three percent are expected to survive beyond the __________ generation. a) first b) second c) third d) fourth Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

29. What can most of the failures of small start-up companies be related to? a) Finding the money to start the business b) Inferior product ideas c) Lack of professional management skills d) Failing to do an IPO Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Most small businesses fail within five years.

30. All of the following should be involved in a business plan EXCEPT:

a) an executive summary. b) the business fundamentals. c) careful organization. d) long and detailed analysis to cover all potential questions.

Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: A small business should start with a sound business plan.

31. A ____________ is a small business that consists of an individual or man and wife. a) partnership b) general partnership c) sole proprietorship d) corporation Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

32. The _________- business structure gives you the most control but that carries the greatest risk. a) corporation b) sole proprietorship c) general partnership d) limited partnership c) limited liability corporation Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

33. When two or more people agree to contribute resources to start and operate a business, it is called a __________. a) partnership

b) limited liability company c) sole proprietorship d) x corporation Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

35. The two types of partnerships are __________ and __________. a) S corporation; corporation b) specific; general c) general; limited d) limited; specific Ans: c Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

35. A partnership in which owners share managerial responsibilities is called a __________. a) limited liability corporation b) specific partnership c) general partnership d) limited partnership Ans: c Bloom’s: Knowledge Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

36. A partnership that consists of one general manager that manages the business and one or more partners that are not involved in the business is called a __________. a) general partnership b) limited partnership c) proprietorship

d) limited liability corporation Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

37. A _________ is a business entity that is legally separated from the owners. a) corporation b) general partnership c) proprietorship d) limited partnership

Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

38. A __________ combines the advantages of the sole proprietorship, partnership, and corporation. a) partnership b) limited liability company c) proprietorship d) x corporation Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

39. John wants to start a new business, but he would like to keep the paperwork simple and avoid large legal fees. However, John does not want his personal property attached to the business. John should start his company as a __________. a) corporation b) partnership c) limited liability company

d) proprietorship Ans: c Bloom’s: Application Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

40. Getting a loan from friends or banks in order to start a business is called __________. a) equity financing b) initial public financing c) debt financing d) leasing Ans: c Bloom’s: Comprehension Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

41._______________ is raising money to start a business by selling a percentage of the company. a) Debt financing b) Initial public financing c) Asset financing d) Equity financing Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

42. The __________form of financing would give you the most control with less flexibility in cash flows. a) equity financing b) money from a venture capitalist c) debt financing d) IPO

Ans: c Bloom’s: Comprehension Level: Difficult Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

43. People who make a living by investing large sums of money in start-up businesses in exchange for an equity position in the company are called __________. a) venture capitalists b) equity investors c) bankers d) start-up managers Ans: a Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

44. A wealthy private individual who invests in new ventures in return for equity in the company is called a(n) __________. a) equity investor b) angel investor c) new venture manager d) banker Ans: b Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

45. An angel investor who invests in a new venture is providing __________. a) debt financing b) partnership financing c) restricted financing d) equity financing Ans: d Bloom’s: Knowledge

Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

46. A(n) __________ is the first time that a company sells its stock to the public. a) stock exchange b) initial public offering c) private exchange d) stock auction Ans: b Bloom’s: Knowledge Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

47. The payoff for venture capitalists is at the occurrence of the __________. a) retirement of the debt b) government regulation c) business closure d) initial public offering Ans: d Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

48. Sadie is the president of Sadie’s Stuff LLC. She owns 200,000 shares of the company. Sadie will be a very wealthy person if the company has a successful __________. a) year b) joint venture c) equity investor d) initial public offering Ans: d Bloom’s: Application Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

True/False

49. Women owned businesses in the U.S. have declined in recent years.

Ans: False Bloom’s: Knowledge Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

50. Entrepreneurship is only involved in starting a new business from scratch.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

51. Fortunately, when it comes to financing, women have far more access to capital than men.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

52. Intrapreneurship is the same as entrepreneurship.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

53. Research suggests that a college degree is necessary to be a successful entrepreneur.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar personality traits.

54. Research shows that entrepreneurs are born not made.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

55. Entrepreneurship does not offer a good path to success for women and minorities.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

56. A “small” business is actually one with 500 or fewer employees.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

57. When a business gets to the “maturity” stage of development, it should focus on refining its strategy, continuing growth, and managing for success.

Ans: True

Bloom’s: Knowledge Level: Difficult Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses must master three life-cycle stages.

58. The Family Firm Institute reports that family businesses account for 78% of new jobs created in the United States and provide 60% of the nation’s employment.

Ans: True Bloom’s: Knowledge Level: Difficult Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

59. Most new businesses fail within five years.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Most small businesses fail within five years.

60. A friend comments to you, “When things go right, nothing beats a family business.

But, when things go wrong, there is not much worse than a family business!” Based upon your reading, is this statement true or false?

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

61. A good family succession plan won’t only spell out how the financial end of things will be handled, but it should also cover control and leadership issues.

Ans: True Bloom’s: Knowledge Level: Medium

Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

62. The main, if not only, reason for writing a business plan is to obtain financing.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: A small business should start with a sound business plan.

63. In a limited partnership, only the general manager is involved in the day-to-day operations; however, all partners share in the profits.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

64. An LLC is a hybrid structural form that gives advantages of sole proprietorships / partnerships for taxes and corporations for liability protection.

Ans: True Bloom’s: Knowledge Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

65. Equity financing provides control to the business owner which has to be repaid eventually.

Ans: False Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

66. When an IPO is successful, the market bids up the share price, thus increasing the value of the original shares held by the venture capitalist and the entrepreneur.

Ans: True Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

Fill-in-the-Blank

67. A(n) __________ occurs when a firm moves faster than its competitors in spotting and exploiting a new market or previously unrecognized niche in the market.

Ans: first-mover advantage Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

68. __________ display entrepreneurial behavior as employees of larger firms.

Ans: Intrapreneurs Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

69. When an entrepreneur is forced to open their own business due to layoffs from their job and a low likelihood of replacing the job, inability to grow in their current career, or simply to put food on the table, they are engaged in __________ entrepreneurship.

Ans: necessity-based Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

70. __________ involves developing a business to solve pressing societal needs at home or abroad.

Ans: Social entrepreneurship Bloom’s: Knowledge Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

71. __________ mistakes are the underlying reasons for most small business failures.

Ans: Management Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Most small businesses fail within five years.

72. In addition to all of the normal operational challenges of small business, when you decide to go into business with siblings, parents, or relatives, you also face the possibility of __________ developing over the multiple relationships and issues that exist outside of the business, complicating the business relationships as well.

Ans: family feuds Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

73. A facility that offers services to help new businesses get established is called a(n) _____________.

Ans: business incubator Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Assistance is available to help small business get started.

74. The document that describes the goals of the firm, outlines how it intends to operate, and lays out the financial strategies is called a(n) __________.

Ans: business plan Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: A small business should start with a sound business plan.

75. When two or more people agree to contribute resources to start and operate a business together it is called a(n) ___________.

Ans: partnership Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

76. The organizational structure that exists as a legal entity separate from the ownership is called a(n) __________.

Ans: corporation Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

77. When you provide ownership shares in exchange for capital that does not have to be repaid in order to start or run your business, you are using __________ financing.

Ans: equity Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

78. Individuals and/or groups who make money by providing funds to new companies in exchange for an equity position and the hope of rising equity value are called __________.

Ans: venture capitalists or angel investors Bloom’s: Knowledge Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

Essay

79. How would you evaluate your “fit” as an entrepreneur?

Ans: While there is no “right” answer here, thoughtful and appropriate responses will discuss personal evaluations of their locus of control; levels of self-confidence and need for achievement; amounts of energy, determination, self-direction, resilience, adaptability; and their action orientation.

Bloom’s: Evaluation Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

80. Compare and contrast the various structural options open to a small business organization.

Ans: Sole proprietorships offer ease, simplicity, and control versus limited resources and high risk and liability. Partnerships offer ease, an increase in resources, and shared responsibility versus less control, risk, and responsibility for the actions of your partners, at least to the extent of your investment in the case of a limited partner. Corporations offer organizational flexibility and limited liability versus cost, complexity, and tax issues. Limited Liability Companies offer the benefits of Sole Proprietorships and Partnerships while providing the personal liability protection of a corporation.

Bloom’s: Analysis Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

81. Define and characterize the various stages of a business life-cycle.

Ans. The stages of the business life-cycle are Birth, Breakthrough, and Maturity.

The Birth stage is the very beginning of the company. Key tasks in this stage are securing the money to fund the business, setting up the firm and establishing a customer base.

The Breakthrough stage is a period of high growth. Key tasks in this stage are achieving profitability, financing the growth and managing an increasingly complex and rapidly changing environment.

The Maturity stage is a stage of slower growth and profitability. Key tasks in this stage are competing effectively, maintaining a strong management team and finding new growth opportunities.

Bloom’s: Comprehension Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses must master three life-cycle stages.

82. What are the main causes of small business failures and what is the number one factor behind these causes?

Ans: The causes of small business failures include lack of experience, lack of expertise, lack of strategy, poor financial planning and control, rapid growth, lack of full commitment and ethical failure. The number one factor contributing to these causes is insufficient professional management experience.

Bloom’s: Evaluation Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Most small businesses fail within five years.

83. What are the various means to fund new ventures? Define them and describe their advantages and disadvantage.

Ans: The means of funding new ventures are debt financing, equity financing, angel investors and venture capital.

Debt financing involves borrowing money from friends and banks. The advantage of this type of financing is that you maintain complete control of the company. The disadvantage is that you have to pay back the loan plus interest. This could put a drain on cash flow.

Equity financing involves selling a percent of the company. The advantage of this type of funding is that you do not have to pay back the money raised. The disadvantage is that you can lose control of the company if you do not maintain majority ownership.

Angels are a source of equity financing. They are private individuals who put moderate amounts of money into the company in the very early stages in exchange for a share of the company. The advantage and disadvantage are the same as that for equity financing.

Venture Capitalists are professional investors who put large sums of money into the new venture in exchange for a significant share of the company. The advantage and disadvantage are the same as that for equity financing except that the risk of losing control of the company is much greater.

Bloom’s: Analysis Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.