Historical Background of Management

HISTORICAL BACKGROUND OF MANAGEMENT
30. Which of the following is no t a reason Smith claimed enhanced productivity fr om division of la bor? a. increasing worker skill and dexterity b. saving time l o st in changing tasks c. creating labor-saving inven tions d. strict management control over worker tim e and mo tion (d; moderate; p. 26) 31. An exam ple of early uses of the functions of management is the _______________. a. developm ent of gun powder b. arsenal of Venice where sh ips were built c. Artist s Revolution in 1803 d. War of 1812 (b; moderate; p. 26) 32. In Wealth of Nations, Adam Smith described the breakdown of job s into narrow and repetitive tasks and called this ______________. a. asse mbly lines b. lowest common factor of work c. division of labor d. greatest common factor of work (c; challenging; p. 26) 33. The major contribution of t h e Industrial Revolution was the substitution of ________ for human power. a. electricity b. water power
c. machine pow er d. critical thinking (c; challenging; p. 27) 34. General administrative theorists devoted their efforts to _________________. a. making the overall organization m o re ef fective b. developing mathematical models to improve m anage ment c. improving t he productivity and efficiency of workers d. emphasizing the study of hu man behavior in organizations (a; moderate; p. 29) 35. Which of the following is no t one of the four m anagement approaches that grew out of the first half of this centur y ? a. scientific manage ment b. general ad mi nistrative c. organizational behavior d. sy stems approach (d; easy; p. 27)
SCIENTIFI C MANA GEMENT

36. Frede r ick Taylor p erformed mo st of his work in _______________.
a. grape vine yards in California b. c. d. steel com p anie s in Pennsy lvania auto assemb ly plants near Detroit cotton gins in Alabama
(b; easy; p. 28) 37. Frank and Lillian Gilbreth s work began in the area of ____ _____________. a. lay i ng bricks
b. cutting lum b er c. installing rudi mentary electrical wiring d. asse mbly line s (a; easy; p. 29)
38. Frank and Lillian G ilbreth were the first researchers to utilize m o tion pictures to the stud y of _____________. a. reactions of workers in group settings b. hand-and-bo dy mo tions c. workers reactions to pay increas es d. groups of workers in tense situations where they are assigning each other tasks (b; moderate; p. 29)
39. W hich of the following phrases is most associated with scientific ma nage me nt ? a. b. m anagement relations one best way
c. supply and de mand d. quality control (b; moderate; p. 28)
40.
The primary issue that aroused Ta y l or to create a mo re s cie ntific approach to
management was ______________.
a. worker efficiency b. worker effectiveness c. worker absenteeism and turnover d. workplace safety (a; moderate; p. 28)
41. According to the textboo k, probably the best-known example of Taylor s scientific management was the ______________ experiment. a. horseshoe b. pig iron c. blue collar d. fish tank (b; moderate; p. 28)
42. Based on his scientific managem ent prin ciples, Taylor suggested which of the following pay principles? a. monthly salary b. monthly salary with bo nus c. seniority pa y d. incentive pa y (d; difficult; p. 28) http://vustudents.ning.com 19
43. A therblig concerns what scientific management w o rkplace issue? a. optimu m te mperature for workplace effi ciency b. basic hand motions c. optimu m spe ed for basic mo tions d. weight/movement ratios (b; moderate; p. 29)
GENERAL ADMI NIST RATIVE THEORISTS
44. General administrative th eory focuses on ________________. a. the entire organization b. managers and adm i nistrators c. the measur e ment of organizational design relationships d. primarily the accounting fu nction (a; easy; p. 29)
45. One could say that Fa y o l was interested in studying ___________ management issues, whereas Taylor was interested in stud ying ________ management issues. a. micro; ma cro b. macro; mi cro c. micro; mi cro. d. macro; macro (b; difficult; p. 30)
http://vustude nts.ning.com
46. Which of the following is no t one of Fayol s principle s of management? a. division of work b. unity of command c. discipline d. equality (d; difficult; p. 30)
47. The 14 prin ciples of managem ent are associated with whom? a. Weber b. Drucker c. Tayl or d. Fayo l (d; moderate; p. 30)
48. According to Weber s ideal bureaucracy, ______________ is when people are selected for jobs based on technica l qualifications. a. career orientation b. authority hierarchy c. i mpersonality d. formal selecti on (d; moderate; p. 30)
49. Bureaucracy defined as a form of organization charact erized by
__________________. a. b. c. di vision of labor clearly defined hierarchy detailed rules and regulations 20
http://vustudents.ning.com d. all of th e above
(d; moderate; p. 30)
QUANTITATIVE APPROACH T O MANA GEMENT
50. Which of the following appr oaches to ma nagem ent has also been labeled operations resear ch or management science? a. the qualitative approach b. the quantitative approach c. the experimental approach d. the theoretical approach (b; easy; p. 31)
51. The quantitative approach evolved fro m the developm ent of mathematical and statistical solutions to ______________. a. waiting line pr oblems at fast-food restaurants in the 1 960s b. military probl e ms in World War II
c. clogged telephone circuits during the 19 30s d. productio n managem ent problems in the 1950s (b; challenging; p. 31)
52. The quantitative approach involves applications of _______________. a. statistics b. optimization models c. information models d. computer simulations e. all of the above (e; moderate; p. 32)
53. Quantitative techniques have beco me le ss intimi dating with the advent of _______________. a. training of these te chniques in college b. computers c. sophisticated co mputer software d. managers with better mathematical skills e. qualit y control (c; difficult; p. 32)
54.
__ ____________ is a technique t h at managers use to improve resource allocation
decisions. a. Li near programming
b. c. d.
Wor k scheduling Econ omic order quantity m odeling Regression analy sis
(a; moderate; p. 32)
55. Decisions on determining a com p any s op tim u m inventor y levels h ave been significantl y i n fluenced by _________________. a. b. c. d. linear programming work sche duling econom ic order quantity m odeling regression analysis 21
http://vustudents.ning.com (c; modera te; p. 32)
56. Which of the following wo uld not be associated with the quantitative approach to management? a. information models b. critical-path scheduling c. systematic motivation of individuals d. linear programming (c; moderate; p. 32)
TOWARD UNDERSTANDI NG ORGANI ZATIONAL BEHAVIOR
57. Concern for employ ee mo tivation is mo s t closely associated with w h ich manage ment approach? a. bureaucracy b. organizational behavior c. scientific manage ment d. systems (b; moderate; p. 32) http: //vustudents.ning.com
58. According to the textboo k, which of the fo llowing earl y advocates of organization al behavior was concerned about depl orable working conditions? a. Robert Owens b. Hugo Munsterberg c. Mary Parker Follett d. Chester Barnard (a; difficult; p. 33)
59. Which of the following early advocates of or ganizatio nal behavior created the field of industrial ps ychology, the s cientific study of peo p le at work? a. Robert Owens b. Hugo Munsterberg c. Mary Parker Follett d. Chester Barnard
(b; difficult; p. 33)
60. According to the textboo k, ______________ was one of the first to recognize that organizations could be viewed from the pers pective of indivi dual and group behavior. a. Robert Owens b. Hugo Munsterberg c. Mary Parker Follett d. Chester Barnard (c; difficult; p. 33)
61. Which of the following early advocates of organizational behavior was the first to argue that organi zations were open systems? a. Robert Owens b. Hugo Munsterberg c. Mary Parker Follett http://vustudents.ning.com d. Chester Barnard 22
(d; difficult; p. 33)
62. Which four theorists are associated with the early or ganizational behavior appr oach? a. Barnard, Follett, Munsterberg, and Owen b. Munsterberg, Taylor, Fay ol, and Follett
c. Tayl or , Fa y o l, Weber, and Barnard d. Follett, Barnard, Munsterb erg, and Weber (a; moderate; p. 33)
63. Which of the following was a major con t ributio n of H ugo M unsterberg? a. He was a soci al refor mer. b. He created the field of indu strial psy chol ogy . c. He was interested in indi vi dual and gr oup behavior. d. He viewed organizations as social sy stems requiring human cooperation. (b; difficult; p. 33)
64. Munsterberg s work in industrial psychology is easily connected with what other management approach? a. general ad mi nistrative b. classi cal management c. systems d. scientific managem ent (d; difficult; p. 33)
65. Contemporary m anage men t practices tha t e mphasize work groups as a means to increasing productivit y can be traced to which of the following aut hors? a. Robert Owen
b. Mary Parker Follett c. Chester Barnard d. Hugo Munsterberg (b; moderate; p. 33)
66. Which of the following is t r ue concer ning the management beliefs of Barnard? a. Employ ee abilit y and m o tivation rem ain fixed within a single em ploy ee, but vary across different employ ees. b. To improve productivit y, management should concentrate on selecting the best e mploy ee rather than m o ti vating current employ ees. c. Productivity is best achieved b y i n sulatin g the organization from external constituencies. d. Organizations are social systems that require human cooperation. (d; difficult; p. 33)
67. Without question, th e m o st im portant contributi on to t h e developin g field of organizational behavior came out of the ________________. a. Tayl or studies b. Porter studies c. Parker studies d. Hawthorne studies (d; moderate; p. 33)
http://vustudents.ning.com
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68. The Hawthorne studies were initia lly devised to study ______________.
a. productivity l evels of gr oups versus indi viduals b. the effect of noise on em ploy ee producti vity c. the effect of illumi nation levels on em ploy ee producti vity d. the effect of cooperative versus co mp etitive organizational environments on productivity (c; moderate; p. 33)
69. What scientist is mo st clos ely associated with the Hawthorne studies? a. Adams b. Mayo c. Lawler d. Barnard (b; easy; p. 34)
70. One outcome of the Hawthorne studies coul d be described by which of the following state ments? a. Social norm s or grou p standards are the key determ inants of indiv idual work behavior. b. Money is m o re important than the gro u p on in divi dual producti vity . c. Behavior and employ ee sentim ents are i nversely related.
d. Security is relatively unimportant. (a; moderate; p. 34)
CURRENT TRENDS AND ISSU ES
71. According to the textbook, the fastest growth in the U. S. workforce will be am ong ________________. a. African-A merican workers b. Asian workers c. Turkish workers d. Ger man workers e. Australian wo rkers (b; moderate; p. 37)
72. Workforce diversity refers to differe nces in employ ees such as ________________. a. gender b. race c. age d. all of the above (d; moderate; p. 39) http://vustude nts.ning.com 73. Workforce diversity will be realized in the next d ecade most importantly by _______ of the population in the United States. a. increase in te enagers b. aging
c. divorce rate d. birthrate http://vustudents.ning.com (b; moderate; p. 39) 24
74. TQM differs from earlier management th eories beca use TQM cost s can be lowered while _______________. a. decreasing costs b. increasing productivity c. allowing reworked product i on to be handled by special tea ms as signed to this task d. e mploy ees are laid off (b; challenging; p. 45)
75. A learning organization develops the capabilit y to ______________. a. add new training pr ogram s even when comp etitors are going bankr upt b. accept conventional wisdom of the industry c. continuo usly learn, adapt, and change d. work in teams (c; moderate; p. 41)
76. __________ is the process of developing businesses to pursue trends and changes that no one else has seen bef ore. a. Entrepreneurship b. Division of labor c. Evolution d. E-commerce (a; easy; p. 40)
77. Knowledge management involves enco urag ing t h e mem b ers of the organization to ________________. a. i mprove the educational level of the average employ ee b. develop new training progra ms to help new employ ees learn their jobs c. develop a corporate university li ke Hamburger Univer sity at McDo nald s d. sy stematically gather inform ation and share it with ot hers (d; moderate; p. 42)
78. The sales and marketing com pone nt of e-business is _____________. a. intranet b. evolution c. e-co mmerc e d. extranet (c; easy; p. 41)
79. ________ an d __ ______ were two of the pioneers in the area of total quality
management. a. Fay o l; Weber b. Tay l or; Gilbreth c. Owen; Munsterberg d. Demi ng; Juran (d; moderate; p. 43) http://vustudents.ning.com 25
80.
Which of the following is not one of the three important themes that stand out in the entrepreneurship?
definition of
a. the pursuit of opport unities b. the theme of innovation c. the potential of failure d. the theme of growth (c; moderate; p. 40)
81. ______________ is a comp rehensive term describing the way an or ganization does its work by using electronic (Internet-based) li nkages with its key constituencies in order to efficiently and effectivel y achieve its goals. a. Electronic comme rce b. Electronic business c. Virtual business
d. Technologically im paired (b; easy; p. 40)
82. In which of th e following categories of e-business involvem ent does an organization use the Internet to perform its traditional business functions better, but not to sell any thing ? a. e-business enhanced organization b. e-business enabled organization c. total e-business organization d. theoretical e-business organization (b; moderate; p. 41)
83. According to the textboo k, Levi Strauss & Co. is categorized as which of the following e-business involvements? a. e-business en hanced b. e-business en abled c. total e-business d. theoretical e-business (b; moderate; p. 41)
84. An internal organizational communicati on s y stem that uses Internet technology and is acce ssible only by organizational employees to commu n icate with its global workforce is called a(n) _______________. a. extranet
b. local area net work c. intranet d. hy p ern et (c; moderate; p. 41)
85. An organization whose entire existence is made possible by and revolves around the Internet is cat egorized as which of the following e-business involvements? a. e-business en hanced b. e-business en abled c. total e-business d. theoretical e-business (c; moderate; p. 41) http://vustudents.ning.com 26
86. This second theme of entrepreneurship involves changing, rev o luti onizing, transformi ng, or introducing new products or services or new way s of doing business. a. organizational structure b. innovation c. organizational sy stem s d. technolog y (b; moderate; p. 40)
87. According to the text, all of the following are mentioned as organizations that have recognized the importance of knowledge mana gement to being a learning organization except _____ __________. a. Hewlett-P ackard b. Toy o ta c. General Electr ic d. Boeing (d; difficult; p. 42)
http://vustude nts.ning.com 88. ______________ is the generic term used to describe the quality revolution that swept through both the business an d public sectors during the 1980s and 1990s. a. Ethno quality management b. Total qualit y management c. Hyper qu ality management d. Partial quality m anage men t (b; moderate; p. 43)
89. All of the following are characteristics of total quality management except _______________. a. intense focus on the com p etition b. concern for continual im provement c. improvement in the qualit y of everything the organization d o es d. accurate mea surement
d. e mpower ment of em ploy ees (a; moderate; p. 43)
90. A ______________ orga nization is one that has developed the capacity to continuo usly learn, adapt, and change. a. virtual b. learning c. traditional d. bureaucratic (b; moderate; p. 41)
91. ______________ involves cultivating a learning culture where organizational memb ers sy stematically gather knowledge and share it with others in th e organization so as to achieve better performance. a. Sy stem s manage ment b. Software managem ent c. Technical ma nagem ent d. Knowledge management (d; moderate; p. 42) http://vustudents.ning.com 27
92. All of the following are characteristics of a learning organization except
________________. a. if it was invented or reinvented here, reject it. b. if y ou aren t changing, it won t be working fo r lon g .
c. ability t o learn; knowledge and expertise. d. control others.
93. ____________ and _ ___________ were the m o st famous drivers of TQM. a. Demi ng; Juran b. Juran; Bailey c. Bailey; Geerdhart e. Tayl or; Demi ng (a; moderate; p. 43)
94. __ ___________ is a philosop hy o f managemen t driven b y c ontinual im provement and responding to customer need s and expectations. a. Workplace religion b. Workplace spirituality c. Quality managem ent d. Knowledge management (c; moderate; p. 43)
Scenarios and Questions For each of the following c hoose the answer that most completely a n swers the question.
HISTORICAL BACKGROUND OF MANAGEMENT
A Look Back (Scenario)
Cindy Schultz, tired from working with custo mers all day , decided to take a 15-mi nute nap to help clear her head before the 4:15 P.M. managers meeting. Her c o mp any had recently begun a reengineering process as well as other changes requiring copious management input. As she leaned back in her chair, she wondered if management science had alway s been this way and how it all began. As she napped, she drea med that she was trav eling in the Manageme n t Way Back Machine with Mr. Peabody as her guide th at too k her back throu gh management history .
95. One of the earliest sites Cindy visite d was the home of Adam Smith, author of The Wealth of Nations, which suggested th at organizations and society woul d ga in fro m _______________. a. time management b. division of la bor c. group work d. quality managem ent (b; moderate; p. 26)
96. Cindy visited a bookstore that was holding a book signing. She saw that the title of the book was Principles of Scientific Management and concluded that the author m u st be ________________. http://vustudents.ning.com a. Adam S mith 28
b. Frank Gilbreth c. Henry Gantt d. Frederick Taylor (d; easy; p. 28)
97. Cind y adm i red the works of Tay lor and Gilbreth, two advocates of _______________. a. scientific manage ment b. organizational behavior c. human resource management d. mo tivation (a; moderate; p. 28)
98. Cind y spent so me time visiting with _ _________, a researcher she previously knew little about but who also contributed to management science by being am ong the first to use mo tion picture films to study hand-and-b o dy mo tions and b y devising a
classifi cation scheme known as a therblig. a. Henry Gantt b. Max Weber c. Chester Barnard d. Frank Gilbreth e. Mary Parker Follett (d; moderate; p. 29)
Scientific Management (Scenario)
As an intern, Jeanna is perp lexed as she h ears different managers discuss their views on particular proble ms. She has been assigned to several depart ments during her internship.
99. While tryi ng to describe a problem , one ma nager utilizes analy sis of basic work tasks that are perfor med in the organization. It is mo st likel y that this m a nager has studied the work of _______________. a. Frederick Tay lor b. Edward Dem i ng c. Max Weber d. Henri Fayo l (a; challenging; p. 28)
100. As she talked to another m anager, Jeanna learned a view of the organization that stressed strict division of la bor, form al rules and regulations, and im personal application of those rules and regulati ons. This manager was a student of -_________________.
a. the Industrial Revolution b. quantitative methods c. spiritual knowledge d. bureaucracy (d; moderate; p. 30)
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101. One particular department in the organization m ade d ecisions about plannin g and control of t h e organization. They used so phisticated computer software to develop
models, equations, and for mulas that aid other managers to do th eir jobs. This depart ment utilizes _______________. a. anthropology b. bureaucracy c. quantitative methods d. spiritual managem ent (c: moderate; p. 32)
102. Jeanna worked in a depart ment where em ploy ees were seen as the driving force behind th e or ganization, and contri buti ons of in divi du als were seen as varied and distinct. This depart ment probably saw em ploy ees though t h e ____________ field of study. a. workplace diversity
b. organizational behavior c. quantitative studies d. total qualit y management (b; moderate; p. 32)
103. One manager encouraged Jeanna to expl ore applications of statistics, optim izati on models, information models, and computer si mu lations to management activities. This manager was discussing _____________. a. quantitative approach b. workplace diversity c. organizational behavior d. knowledge managem ent (a; easy; p. 32)
TOWARD UNDERSTANDI NG ORGANI ZATIONAL BEHAVIOR
A major research effort started in the 1920s at a telephone equi pment assemb ly plant in Cicero, Illinois. The Indust r ial Revolution had sustained Western Electric for the last 50 y ears, but the latest atte mp ts to use the princi ples of Tay l or, the Gilbreths, and other theorists had not prod uced im provements in prod uctivit y .
104. In cooperation with resear chers fro m Harvard, managers designed a project that was the last attempt to app ly the principles of the Industri al Revolution and the first research into a new are a of manage ment thought. This project began as a test to determ ine the m o st productive ___ ______________.
a. reward structure b. illumi nation level c. num ber of breaks during a shift d. num ber of days away from work per m o nth (b; moderate; p. 33)
105. This research effort lasted for 7 y ears and became known as ________________. a. the Harvard Rese arch Gro up b. the Boston Consulting Group c. quantitative management d. the Hawthorne studies (d; moderate; p. 33)
106. The research project studied _________________. a. behavior and sentim ents http://vustudents.ning.com b. group influences on indivi dual behavior 30
c. group standard s affect individual behavior d. all of the above (d; difficult; p. 33)
107. Critics of these research ef forts criticized _______________.
a. the resear ch procedures b. analyses of findings c. the conclusions based on the analy ses of the findings d. all of the above (d; difficult; p. 34)
108. The mo st imp o rtant thing about th ese studies is that they ________________. a. helped employ ees understand their own behavior, beginning the employ ee empowerment movement b. sti mulated interest in hum an behavior in organizations c. concluded tha t e mploy ees were no different from machines d. showed that managers had to be rig h t in all their decisions (b; difficult; p. 34)
The Human Side (Scenario)
As an engineer, Kevin was trained to understand the roles of machinery and hardware in enhancing or ganizational produc tivi ty . However, Kevin was promoted to a m anagerial position where his duties i n cluded supe rvising a depart ment of 34 people and leading th em toward comp letion of a n ew project. Ever the perfectionist, Kevin decided t o enhance hi s understanding of the human side of business manage ment by reading a histor y text on the hum an re sources approach.
109. Kevin read that ____ _______ was an early social reformer who is rememb ered most for
his/her courage and commitment to reduci ng the suffering of the w o rking class. a. Hugo Munsterberg b. Robert Owen c. Mary Parker Follett d. Chester Barnard (b; moderate; p. 33)
110. Kevin also expanded his reading list to inclu d e works authored by _ _ ____________, the creator of the field of industrial psy chology. a. Hugo Munsterberg b. Robert Owen c. Mary Parker Follett d. Chester Barnard (a; moderate; p. 33)
111. Kevin was surprised to learn that using group-based projects was not a contem porary concept. In fa ct, ___ ________ was an early 1900s social philosoph er who th ought t h at organizations should be based on a group ethic. a. Hugo Munsterberg b. Robert Owen c. Mary Parker Follett d. Chester Barnard http://vustudents.ning.com (c; moderate; p. 33) 31
112. Kevin also learned that th e human resources approach was not limited to academic theorists. A strong contrib u tion to this field was made by ___ ____________, an actual manager who thought organizations were so cial sy stems that required cooperation. a. Hugo Munsterberg b. Robert Owen c. Mary Parker Follett d. Chester Barnard (d; moderate; p. 33)
CURRENT TRENDS AND ISSU ES
The New Challenge (Scena r io)
Tom has just been promoted to chief technolog y officer at his comp any , Global Tech Solutions, Inc. His first assignment is to identify fo ur project ma nagers in the comp any tha t are likely to s u ccessfully manage new projects. Tom s elects Robert, Frank, Sue, and Jan, who all are recent graduates from a local university . He informs them about a current situation.
113. During a discussion about e-business, Robert tells Tom that he understands that ______________ is a comprehensive ter m descr ibing the way an organization does its work b y usin g electronic linkages with its ke y constit uencies in order to efficiently and effectively achieve its goals.
a. b-business b. t-business c. e-business d. i-business (c; moderate; p. 40)
114. Discussing the three categories of e-business was no t difficult. Tom si mp ly st ated that the three cate gories included all of the following except ___ __________. a. e-business en hanced b. e-business en abled c. total e-business d. cross-sectional e-business (d; moderate; p. 41)
115. Tom further clarified that many Fort un e 500 t y pe organizations are evolving into ebusinesses using the ___ ____________ approach. a. e-business-en hanced b. e-business-en abled c. total e-business d. cross-sectional e-business (a; moderate; p. 41)
116. Sue asked for so me examp l es of traditional organizations that have beco me e-business enhanced. Tom r eplied that all of the following are exa mples ex cept ___ ____________. a. Merrill Lynch b. Yahoo!
c. Office D epot d. Starbucks (b; moderate; p. 41)
Regional University (Scenario) http://vustudents.ning.com 32
A regional university is trying to deal with m any pressures to maintain its vitality in today s educational environm ent. It faces many challenges that test the ma nagers at the university.
117. In an attem p t to attract students from foreign counties, the university designs a new departme nt. This new departm e nt is task ed to attract internationa l students and move them into the m a instr eam of the university through an intensive program that teaches English. This action could best be defined as _______________. a. bureaucracy b. organizational behavior c. a quantitative approach d. globalization (d; easy; p. 37)
118. Realizing that the university needs to attract a heterogeneous m i xture
of faculty, the university develops a plan to hire faculty from different genders, races, and ages. This is seen as a move to develop _________ in the univ ersity. a. workforce diversity b. entrepreneurship c. e-business d. scientific managem ent (a; easy; p. 39)
119. Although m o st universit y programs that offer degrees through classes on the Internet are at either th e associat e degree or graduate level, this university decides to offer a degree at bachelor s level. This is an exam ple of ____ _____________. a. workforce diversity b. entrepreneurship c. organizational behavior d. scientific managem ent (b; moderate; p. 40)
120. In an effort to im prove operations in the university, Internet we b pages are developed to m a rket the university, accept ap plications to the university, and accept applications for cam pus housi ng. These operations are seen as p a rts of an e-business _________ organization. a. enhanced b. enabled http://vustudents.ning.com c. capable 33
d. effective (b; moderate; p. 41)
121. Plans were ma de and classes were developed that would be delivered through the Internet. These operations are seen as parts of an e-business _________ organization. a. enhanced b. enabled c. capable d. effective (a; moderate; p. 41)
The New Busi ness (Scenario )
Lois has started on her own children s clothing store business. She is a bit nervous but is confident she will do a good job. She rem e mbers studying the different approaches to m a nagem e nt and knows when to use each appr oach.
122. Before opening day , Lois has to decide how mu ch money she shou ld p u t in her budget to ward advertising. This is usin g the _________________. a. organizational behavior ap proach
b. quantative approach c. qualitative approach d. sy stems approach (b; moderate; p. 31)
123. Lois has three people she needs to interview for h er manager po sition. Employ ee selection procedures is an exam ple of __ _____________. a. organizational behavior ap proach b. quantative approach c. qualitative approach d. sy stems approach (a; moderate; p. 32)
MULTIPLE - CHOICE QUESTIONS For each of the following c hoose the answer that most completely a n swers the question.
THE MANAGER: OMNIPOTENT OR SYMBOLIC?
29. What are the two views of manageri al impa ct on the success or failure of the organization? a. omnipotent and s y mbolic b. omnipotent and reflective c. sy mbolic and interactive d. reflective and interactive (a; moderate; p. 50)
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30. The omnipotent view of m a nagem ent me ans ________________.
a. the top m anager is the only person in ch arge b. managers are directly responsible for an organization s success or failure c. that there is only o n e boss in the organiz ation, and she or he is responsible for delegating orders d. managers have little or no r esponsibilit y for an organization s success or failure (b; easy; p. 50)
31. The __________ view of management is consistent with the stereot y pical picture of the take-charge business execu tive who can overcome an y obstacle in carryin g ou t the organization s objectives. http://vustude nts.ning.com a. om nipotent b. symbolic c. functional d. systems (a; hard; p. 50)
32. The sy mbolic view of management means _____________. a. managers are directly responsible for an organization s success or failure
b. managers have little or no r esponsibilit y for an organization s success or failure c. that external forces are dire ctly r esponsible for an orga nization s suc cess or failure d. the em ploy ee s are directly responsible for an organiz ation s success or failure (c; easy; p. 50)
33. Internal constraints that restrict a manager s decision options _______________. a. exist within every organization b. do not exist, as all managers can decide as they please c. exists onl y to the extent that upper m an agem ent imp o ses them d. exist only t o t h e extent that followers won t do as the y are told (a; easy; p. 51)
34. The current do mi nant assump tion in managem ent theory _______________. a. suggests a balanced view of ma nagers as sy mbolic and omnipotent b. suggests m an agers are symbolic c. suggests man agers are o m nipotent d. is that both t he sy mbolic and omnipotent views are fading (c; modera te; p. 50)
35. Which of the following vi ews of managerial im pact is useful in explaining th e high turnover amo ng college and professional spor ts coaches who can be considered the manager s o f their tea ms? a. symbolic b. omnipotent
c. generalist d. autocratic (b; moderate; p. 50)
36. According to the sy mbolic view, mana gers have a(n) ___ __________ effect on substantive or ganizational outcome s. a. substantial b. moderate c. lim it ed http://vustudents.ning.com d. unlim ited 35
(c; modera te; p. 57)
37. Managers operate within the constraints imposed by __________________. a. governm ent at the federal and state level b. the em ploy ee s of the organ i zation c. the organization s culture and envir onm ent d. the organization s board of directors (c; modera te; p. 51)
38. A manager may be able t o expand their area of discretion b y _______________.
a. telling the employ ees what to do b. changing and influencing t h eir organization s culture and environm ent c. electing new governm ent officials at the federal and state level d. changing employ ers and thus their boss (b; moderate; p. 51)
39. __________ t h at restrict a manager s decision options exist within every organization. a. Internal constraints b. External constraints c. Organizational external environments d. Organizational environment changes (a; hard; p. 51)
THE ORGANIZA TION S CULT URE
40. Organizational culture is similar to an individual s _____________. a. skills b. personality c. mo tivation d. abilit y (b; easy; p. 52)
41. An organization s culture i s ____ __________. a. represented in organizational meetings by the top ma nager of the organization b. represented by a common perception held by i n terest groups t h at watch the organization c. represented by a common perception held by the orga nization s m e mb ers d. changed when the organiz ati on is purchased by new owners (c; hard; p. 52)
42. Organizational culture is concer ned with how me mb ers perceive the organization not whether th ey __________. a. like it b. like their peers c. like their boss d. like their customers http://vustudents.ning.com (a; easy; p. 52) 36
43. Strong cultur es _____________. a. are found in or ganizations with strong leaders b. have a mi nimal influence on the employ ee when she or he is m aki ng decisions c. can be found in all organiz ations that exist
d. have a greater influence on e mploy ees than do weak cultures (d; moderate; p. 53)
44. E mploy ees in organizations w ith strong cultures _______________. a. are mo re co mmitted to their organization b. are mo re likel y to leave the organization than stay c. are mo re willing to perform illegal activ ities d. are mo re likel y to follow directives fro m peers (a; moderate; p. 53)
45. Which of the following phrases is as sociated with the definition of organizational culture? a. indivi dual response b. shared me aning c. diversity of thought d. explicit directions (b; easy; p. 52) http://vustudents.ning.com 37
46. Which of the following is not mentioned in th e textbook as a dimension of organizational culture? a. attention to detail
b. people orientation c. comp ensation d. aggressiveness (c; modera te; p. 52)
47. Sony Corporation s f o cus on product innovation is an exam p l e of which of the following di mensions of organizational culture? a. attention to detail b. people orientation c. outcome orientation d. aggressiveness (c; modera te; p. 53)
48. Corporate ___________ ar e repetitive se quences of activities that express and reinforce the values of the organization, what goals are mo st im portant, which people are important, and which are expendable. a. languages b. rituals c. symbols d. ceremonies (b; easy; p. 57)
49. The mo st significant ways that culture is transm itted to employ ees consist of __________. a. rituals, tales of woe, symbols, and langua ge
b. sy mbols, ritu als, language, and s y stem s c. stories, rituals, symbols, and language d. language, sto r ies, rituals, and rewards (c; modera te; p. 56)
50. When employ ees at Microsoft use words such as: work judo, eating your own dog food, and flat food , t h ey are using or ganizational __________. a. languages b. rituals c. symbols d. ceremonies (a; easy; p. 57)
51. Most organizations have _ ___________ cultures. a. very weak b. weak to moderate c. moderate d. moderate to strong (d; moderate; p. 53)
52. The original source of an or ganization s c u lture usuall y ________________. a. is shared amo ng the first wo rkers hired i n to the or gani zation http://vustudents.ning.com 38
b. is form ulated by the bo ard of directors when the organization is formed
c. identifies what the organization is successful doing d. reflects the vision or mi ssion of t h e orga nization s f o under (d; moderate; p. 53)
53. Organizational ___ __________ t ypically contain(s) a narrative of significant e v ents or people. a. stories b. rituals c. charts d. material sy mbols (a; moderate; p. 56)
54. All of the following are mentioned in the textbo ok as exam ples of material sy mbols except _____ _______. a. dress attire b. size of offices c. employ ee stock optio ns d. reserved parking spaces for certain e mpl oyees (c; modera te; p. 57)
55. The link between organizational values a nd managerial behavior is _____________.
a. uncertain b. fairly straightforward c. loose and difficult to see d. unimportant (b; moderate; p. 59)
56. By learning o r ganizational language, m e mb er s ____ _____________ . a. can co mmunicate with the stockholders of the organiz ation b. know that the boss will be prom oting them to greater responsibilit y c. attest to their acceptance of the culture and their willi ngness to help preserve the culture d. can share material sy mbols with other me mb ers (c; hard; p. 57)
57. An organization s culture ______________. a. constrains what managers can do and are rarely explici t b. seldom constrains what ma nagers can, cannot do , and are rarely explicit c. seldom constrains what ma nagers can, cannot do , and are rarely implicit d. constrains what managers can, cannot do, and are rarely explicit (d; hard; p. 52)
THE ENVI RONMENT
58. External environment refers to ___ ______________. http://vustudents.ning.com 39
a. institutions outside the organization th at affect the organization s pe rformance
b. forces and institutions outside the organization that potentially can affect the organization s perform ance c. forces and institutions inside the organization that affect the organization s performance d. forces inside the organization that affect the organization s performance (b; hard; p. 64)
59. According to the textbook, t h e _______________ environment includes those constituencies that have a direct and immedi ate i m pact on man agers decisi ons and actions and are directly relevant to the achievem ent of the organization s goals. a. general b. specific c. secondary d. forward (b; moderate; p. 64)
60. An organization s specific environm ent ____ ____________.
a. is unique and changes with conditions b. is the same regardless of the organization s age c. is determ ined b y the top le vel of manage ment d. is quantified t o determine its existence (a; moderate; p. 64)
61. The specific environm ent of organizations consists of constituencies that have a direct i mpact on managers decisions and actions. The main consti tuencies are made up of customers, suppliers, comp etitors, and __________. a. legislators b. pressure groups c. e mploy ees d. lawyers (b; moderate; p. 64)
62. Which of the following is not an examp l e of a consti tuency that makes up the s p ecific environm ent? a. custo mers b. sociocultural factors c. suppliers d. comp etitors (b; moderate; p. 64)
63. When y o u thi nk of an orga nization s supp liers, you ________________. a. know that they are the main custom ers of the organization
b. typically think of governments that pass the laws the organization must follow c. know that they are located close to the buy ing organization d. typically thi nk in term s of organizations that provi de materials and equipment (d; moderate; p. 65)
64. Managers seek to ensure a steady _ _________________. a. cash flow from stockholders into the or ganization b. flow of needed inputs at the lowest price available c. flow of customers at the comp any s outlet store d. flow of suppl iers to keep the com p etition among suppliers at a peak (b; moderate; p. 65) http://vustudents.ning.com 40
65. The Internet is having an imp act on who an organization s comp et itors are because it has _____________. a. defined the common mark ets for the org anizations b. made the products the y sell invaluable t o the custom er c. virtuall y eliminated th e need for shopping m all s d. virtuall y eliminated the geographic bo undaries (d; hard; p. 66)
66. For a comp a ny such as Walt Disney World in Florida, a bank would be an exampl e of
what kind of factor in their specific environm ent? a. comp etitor b. supplier c. special-interest group d. government agency (b; moderate; p. 66)
67. Which of the following is no t an exam pl e of a specific environmental factor? a. suppliers b. political conditions c. governmental agencies d. B and C are co rrect. (d; moderate; p. 65)
68. For an organization such a s a hospital that needs nur ses, the labor union and the local labor ma rket are exa mpl es of what kinds of factors in their specific environm ent? a. special-interest group an d supplier b. customer and special-interest group c. both are exam pl es of suppliers d. governm ent agency and com p etitor (c; difficult; p. 65)
69. Typically, the specific organizational environm ent includes which of the following ? a. econom ic factors b. political conditions
c. technological factors d. comp etitors (d; moderate; p. 64)
70. United Parcel Service represents what factor to the U.S. Postal Service in its specifi c environm ent? a. comp etitor b. supplier c. custo mer d. government agency (a; moderate; p. 65)
71. The general economic con d ition consist of all of the fo llowing except _______________. a. legislation recently passed by Congress http://vustudents.ning.com b. interest rates 41
c. change in disposable income d. stock market fluctuations (a; moderate; p. 66)
72. Sociocultural conditions consist of _______________. a. dem ographic profiles of th e organization s supp liers b. legal issues a s deter mined by court decisions c. the level of un employ ment and real econom ic inco mes of workers d. changing expectations of the society in which the y operate (d; hard; p. 67)
73. To a national network such as NBC, y o ur home VCR is considered a _____ ________. a. custo mer b. supplier c. special-interest group d. comp etitor (d; moderate; p. 66)
74. According to the textbook, _____________ is having an im pact on determ ining an organization s comp etitors because i t has virtua lly elim inat ed the geographic boundaries. a. local area net work b. the intranet c. the Internet d. video conferencing (c; easy; p. 66)
75. Ralph Nader s Center for Responsive Law is an example of what factor in the specific
external environment? a. comp etitor b. pressure group c. custo mer d. government agency (b; moderate; p. 66)
76. Typically, the general organizational e nvironment includes which of the following? a. political conditions b. issues directly relevant to achieving org anizational goals c. stakeholders d. suppliers (a; moderate; p. 66) 77. Comp ared to the specific environm ent, which of the following is an accurat e statement about the general environment of an orga nization? a. It has less i mpact on the organization s operations. b. It has mo re imp act on the organization s operations. c. It has about th e same impact on an organization s operations. d. It is the concern of upper managem ent. (a; difficult ; p. 66)
78. Which of the following is no t an exam ple of an organization s general environment? a. econom ic conditions b. political conditions c. social conditions
d. industr y conditions http://vustudents.ning.com (d; moderate; p. 66) 42
79. Interest r ates, inflation rate s, and stock market indexes are all exampl es of wha t factor in an organization s general environment? a. econom ic b. political c. social d. technological (a; moderate; p. 66)
80. The Americans with Disabilities Act of 1990 is an exam ple of a __________. a. sociolegal condition b. political/legal condition c. political/sociological condition d. sociocultural condition (b; moderate; p. 66)
81. A downturn in the contri butions from the public to the United Way charity is an example of the impact from what factor in its general environment? a. political
b. social c. technological d. economic (d; moderate; p. 66)
82. According to the textbo ok, which of th e following groups includ es individu als who were born between the y ears 1946 1964? a. the Depressio n group b. the World War II group c. the baby boomers d. Generation X (c; difficult; p. 58)
83. According to the textbook, the me mb ers of which one of the following groups are thinki ng, learning, creating, shopping , and pla y ing in fundamentally different way s that are likely to g r eatly im pact organizations and managers? a. the Depressio n group b. the World War II group c. the baby boomers d. Generation Y (d; difficult; p. 68)
84. Generation Y is predicted to be __________ th eir bab y boomer parents generation.
a. as large as, if not larger than b. large, but not as large as c. not any where nearly as large as d. mu ch, mu ch smaller than (a; moderate; p. 68)
85. Which factor has been the mo st rapidly chang i ng co mponent in an organization s general environment in the past quarter-century? http://vustudents.ning.com a. global 43
b. economic c. social d. technological (d; moderate; p. 68)
86. The enhanced speed and quality of manage rial decision making due to an i ntegrated office system is an exa mple of the impa ct of which general environmental facto r ? a. global b. social c. political d. technological (d; moderate; p. 68)
87. Which of the following are the two dim e nsions of envi ronmental uncertainty ? a. degree of change and degr ee of comp lexit y b. degree of change and degr ee of volum e c. degree of com p lexity and degree of imp act d. degree of imp act and degree of tim ing (a; moderate; p. 60)
88. We call it a __________ e nvironment if the com ponents in an organization s environm ent change frequently. a. moving b. diverse c. dy nam i c d. difficult (c; hard; p. 69)
89. Managers try to m i ni mi ze _____ _____ because it is a threat to an organization s effectivenes s. a. product developm ent b. uncertainty c. price charges d. the number of suppliers (b; moderate; p. 69)
90. __________ are any consti tuencies in the organization s external e nvironment that are affe cted by the organization s de cisions and actions. a. Stockholders b. Pressure groups c. Suppliers d. Stakeholders (d; moderate; p. 71)
91. According to the textbook, _______________ refers to the n u mb er of com ponents in an organization s environment and the extent of the knowledge that the organization has about those components. a. degree of stabilit y b. openness c. degree of com p l exity d. change http://vustudents.ning.com (c; modera te; p. 70) 44
92. The first step of managing external stakeholder relatio nships is to id entify who the stakeholders are. The seco nd st ep is to _________________. a. determ ine wh at specific approach they s hould use to manage the stakeholder relationship
b. determine wh at the courts might do whe n stakeholder files a claim against the organization c. determine wh at particular interests or concerns these s t akeholders might have d. determine how many stakeholders there are in each st akeholder group (c; hard; p. 71)
Scenarios and Questions For each of the following, choose the answer that most completely a n swers the question.
THE ORGANIZA TION S CULT URE
Corporate Takeover (Scenario)
Todd works fo r SeaLan Tech, an environmental consulting firm that has just been purchased by Zerex, Inc., a bio medical rese arch organi zation. Based on his early encou n ters with th e new upper management fro m Zerex, he feels that SeaLan is a lower-key, friendlier organization. He is concerned that the new co mp any will eliminat e SeaLan s ol d culture, and he does not like the prospects.
93. If y o u were talking with Todd and as ked him what the term cu lture meant, he would reply that, ba sically , it is _ ________________. a. the formal rules of an organization
b. the nationality of the workers in the comp any c. a sy stem of s h ared meaning d. a sy stem that reflects diversity and respect for differences (c; easy; p. 52)
94. Todd is concerned with the degree to which managers focus on results or outcome s rather than techniques and the processes u sed to achieve those outcom e s. He is concerned with _____________. a. stability b. aggressiveness c. team orientation d. outcome orientation (d; moderate; p. 53)
95. Todd notices that manage ment is ver y concerned with the effects of outcomes on people within the organization. This is re ferred to as _____________ . a. stability b. aggressiveness c. team orientation d. people orientation (d; moderate; p. 53) http://vustudents.ning.com 45
96. Todd is assessing the organization s _____________, the degree t o which organizational activities emphasize maintaining th e status quo in contrast to growth. a. stability b. aggressiveness c. team orientation d. outcome orientation (a; moderate; p. 52)
97. Todd has been learning th e seven dimensi ons of organizational culture. Which of the following is no t one of thos e seven dim e nsions? a. stability b. aggressiveness c. mem b er orientation d. outcome orientation (c; modera te; p. 52)
Changing Organizational Culture (Scenario)
Mary has been asked by the co mp any president to change the organizational culture to reflect the co mp any s new organizational goals. As executive vice president, she certainly understands th e goals, but is really not sure that she understands what to do abo u t the culture.
98. Mary asked employ ees if t h ey knew what constituted good empl oyee behavior. She found t h at very few under stood, and m o st had a variety of i d eas. This is one indication that her comp any _______________. a. has a strong culture b. has a weak culture c. has no culture d. mu st have high turnover (b; moderate; p. 53)
99. Mary also found out t h at in order to bu ild a strong new culture, she should do all but which of the fo llowing? a. utilize their recruitment efforts b. develop socialization practices to build cu lture c. encourage a high turnover r ate d. have management make explicit what is valued in th e organization (c; difficult; p. 53)
100. Mary was surprised to find that mo st organizational culture strengths are ____________ . a. weak b. weak to moderate c. moderate to strong d. strong (c; modera te; p. 53)
THE MANAGER: OMNIPOTENT OR SYMBOLIC?
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101. Mary has also been asked, as part of t h e cultural c h ange, to bui ld on the belief that managers are directly responsible for th e organization s success or failure and not
forces outside their control. This would be c onsistent with an organizational culture that has a(n) ______________ view of management. a. traditional b. omnipotent c. standard d. symbolic (b; moderate; p. 50)
102. The new view of management change for the new culture will be difficult because, in the past, success has bee n viewed as being outside management s control, a view known as _____________. a. traditional b. omnipotent c. standard d. symbolic (d; moderate; p. 50)
THE ENVI RONMENT
Environmental Constraints (Scenario)
It is safe to say t h at managers do not have co mp lete control o v er organizational outcome s; the environm ent has a significant impa ct. However, there are different environm enta l factors that shape a mana ger s work life.
103. As a man ager, if y ou were working in an indu stry that was dependent o n I n ternet connections and the many new custo mers vy ing for th e same space, this would be an example of what kind of environm ent? a. general b. static c. stable d. dy nam i c (d; moderate; p. 69)
104. Political conditions, wh ich includ e attitud e s that officials hold toward specific industries, fall within an organization s _____________ environm ent. a. global b. internal c. comp etitive d. general (d; moderate; p. 69)
DEFININ G THE EXTERNAL ENVIRONMENT
The Election (Scenario)
At the present time, your organization is con fronting the election of a new president and congress, changes in how t h e customer wants your product to look in design, cha nges in the age and education level of your custom er, and the desi re of the customer to have the product made in the newly discover ed plastics used in the cons truction of your prod uct.
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105. The changes in the presidency and congress compose what for y o ur organization?
a. general environm ent b. specific environm ent c. pressure group d. interest group (a; mod erate; p. 66)
106. The change in how the cus t omer wants your pr oduct to loo k in design is an example of wh at? a. general environm ent b. specific environm ent c. pressure group
d. interest group (b; hard; p. 64)
107. The changes in the age and education level of y our cus t omer are an example of which of the fo llowing? a. econom ic condition b. political/legal condition c. sociocultural condition d. technological condition (c; modera te; p. 67)
108. To have the product made in the newl y d i scovered plastics used in the construction of y our pro d uct is an example of which of the following? a. econom ic condition b. political/legal condition c. sociocultural condition d. technological condition (d; moderate; p. 68)
The New Medical Product (Scenario)
You are a ma nager of ma rketing and ar e planning on introd ucing a new medical product t h at has stirred up controvers y among certai n pub lic groups. Mem b ers of the research and developm ent staff have pointed out that th e comp any has a history of intro ducing
controversial products and be ing successful doing so. Memb ers among your staf f have stated that this product is mo re controversial th an any product introd uced previo usly .
109. The public group th at is op posed to the in troductio n of the new me dical product is known as which of the f o llowing? a. service group b. defense group c. pressure group d. informal group (c; modera te; p. 66)
110. When look in g at the introdu ction of t h e new product i n to particular market niche, this nic h e is which of the fo llowing to the organization as a w hole? a. general environm ent b. specific environm ent c. political/legal condition d. sociocultural condition http://vustudents.ning.com (b; hard; p. 64) 48
THE ORGANIZATION S CULTURE
111. The research and development depart ment is acting on the comm o n perception held by t h at d epartment known as what? a. omnipotent view of manage ment b. organizational culture c. internal constraint d. external constraint (b; hard; p. 52)
112. The marketing staff s resistance to introducing th e new medical product is which of the fo llowing f o r t h e marketing manager? a. omnipotent view of manage ment b. organizational culture c. external constraint d. internal constraint http://vustudents.ning.com (d; moderate; p. 51) 49
STRONG V E RSUS WEAK CULTU RE
113. If the marketi ng departm en t staff had agreed with the resear ch and development staff, then it could be said that the organization probably possesses what? a. strong culture b. weak culture
c. specific intern al environm ent d. specific intern al constraint (a; easy; p. 53)
Operating Within the Envir onm ent (Scen ario)
The environ ment places constraints on the beha vior of managers. Suppose you are a manager trying t o understand the forces within your organizati o n s environment.
114. Imagine you are the manager of a real estate office trying t o ma xim i ze profits. If the mo rtgage interest rates incr ease, this would be an exam ple of changing ____________ in y our general environm ent. a. economic conditions b. political conditions c. comp etition d. social conditions (a; moderate; p. 66)
Chris Co. (Scenario)
Mr. Tayl or h aw been hired b y Chris Co., a manufacturer of precious metal jewelry . Chris Co. has been having significant issues with some of their major stakeh olders such as poor quality from their suppliers and com p laints from their cu stomers. Mr. Tay lor has been hired to help resolve these issues and to help build a plan for resolving the company s problem with their major stakeholders.
115. Mr. Taylor fi nds out how critical each stak eholder is to the organiz ation s decisions and actions. This is the ____ ________. a. first step b. second step c. third step d. final step (c; easy; p. 71)
116. Mr. Tay l or identifies who the organizations stakeholders are. This is th e ______________. a. first step b. second step c. third step d. final step (a; easy; p. 71)
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117. Mr. Tayl or d ecides how to manage the exte rnal stakeholder relati onships. This is the
____________ . a. first step b. second step c. third step d. final step (d; easy; p. 71)
WHAT S Y OUR GLOBAL PERSPECTIVE?
28. In a global marketplace ____________. a. the entire world is a market place b. national bor ders are irrelevant c. the potential f o r organizations to grow expands dramatically d. all of the above (d; moderate; p. 78)
29. In a global marketplace managers mu st _____________. a. deal with economic, political, and cultural differences b. expect co mp etitors to suddenly appear at any tim e fro m any place c. not take specific differences of a local environment into consideration d. a and b (d; moderate; p. 78)
30. One reason for parochialism in the United States is that Am ericans tend to stud y _____________ in schoo l. a. onl y English b. only two langu ages c. English and Fr ench d. English and German (a; easy; p. 79)
31. Which of the following describes the curre nt state of the world use of languages? a. Germans and Italians, unlike other Europeans, onl y speak their native language. b. Americans tend to study many other lan guages in school. c. Most Japanese begin learning English b y their third y ear of high sch ool. d. Americans tend to th in k of English as th e onl y international busines s language. (d; moderate; p. 79)
32. Ethnocentric views concentrate on their _____________. a. home country b. host countr y c. world orientation d. racial orientation (a; easy; p. 80)
33. _____________ is a sign that Am ericans suffer fro m parochialism .
http://vustudents.ning.com a. Multinational i sm
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b. Monolingualism c. Geocentris m d. Pol y centrism (b; moderate; p. 79)
34. Parochialism is ____________. a. acceptanc e of diverse points of view b. a desire to leave one s own culture for a foreign culture c. a tendency t o view the world thro ugh a single perspective d. recognition of diverse religious beliefs (c; modera te; p. 79)
35. For U.S. businesses to ha ve successful global mana ge ment, which of the following state ments provides the be st advice? a. Americans sh ould co ntinue to push for t h e use of Eng lish onl y. b. Stick to your own custom s to avoid em barrassing incidents. c. Make sure foreign businesspeople know you are American so they will speak to you in Eng lish. d. Develop an understanding of mu lticultural differences. (d; moderate; p. 80)
36. Which of the following is the least fav o rable attitude for an American manager who wishes to be succes sful in international business? a. mu lticultural b. mu lticountry c. ethnocentric d. poly centric (c; easy; p. 80)
37. Managers with a(n) ___________ attitude view every fore ign operation as different and hard to u nder stand. a. geocentric b. ethnocentric c. selfless d. sensitive and caring (b; moderate; p. 80)
38. Successful global management requires an attitude that is best described as _____________ . a. ethnocentric b. parochial c. polycentric d. geocentric (d; easy; p. 80)
39. A(n) __________ attitude is ch aracterized by parochialism . a. geocentric b. nonlinguistic c. selfless d. ethnocentric (d; moderate; p. 80) 40. A(n) _____________ attit ude is the view th at host-countr y man agers know the best practices for r unning their operations. a. ethnocentric http://vustudents.ning.com b. poly centric 52
c. geocentric d. in ternational (b; easy; p. 80)
41. The geocentric attitude is a _____________ view. a. national b. world c. culture-boun d d. narrow (b; moderate; p. 80)
42. _____________ m anagement requires enhanced sen sitivity to dif f erences in national customs and practices. a. Ethnocentric b. Pol y centric c. Global d. Parochial (c; modera te; p. 81)
43. Successful global management requires ______________. a. rigid applicati on of hom e-country practices b. enhanced sensitivit y to difference s in national customs and practices c. A mericanizat ion of foreign managers d. teaching English to foreign nationals (b; moderate; p. 81)
UNDE RSTANDI NG TH E GLOBAL ENVI RONM ENT
44. The _____________ was created by t h e unification of 12 cou n tries in Euro pe. a. European Common Marke t b. European Union c. Western European Alliance d. Trans-European Market (TEM) (b; moderate; p. 81)
45. The _____________ is a co llection of c ountries that use a commo n currency .
a. European Common Marke t b. European Union c. Western European Alliance d. Economic an d Monetary Union (EMU) (d; difficult; p. 82)
46. The principle reason for form ation of the regional trading alliance in Europe was to reduce the po wer of the United States an d __ _______. a. Canada b. Mexico c. Japan d. Russia (c; modera te; p. 82)
http://vustudents.ning.com 47. The European Union covers ______________.
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a. border controls, taxes, and subsidies b. nationalistic policies and travel c. employ ment, investment, and trade d. all of the above
48. The single EU currency w ill be called the ____________. a. franc b. franc-mark c. poun d d. euro (d; moderate; p. 82)
49. The European Union consists of ____ _______. a. 12 coun tries b. 15 coun tries c. 12 countries with plans to add m o re d. 25 countries with plans to add 2 mo re in 200 7 (d; difficult; p. 81)
50. Within the me mb ers of the North American Free Trad e Agreement, trade has ___________ since the treaty was signed. a. decreased initially, but increased steadily b. increased c. decreased d. increased in commodities, but decreased in manufactur ed goods (b; moderate; p. 82)
51. The prim ary mo tivation for joining the European Union was ______________.
a. to reduce the econom ic com p etitiveness with other pa rts of the world b. to increase the political power of European countries in worldwide peace negotiations c. to control tax exemptions within Eu rope and encourage intermemb e r cooperation in apprehending tax cheaters d. to reassert their econom ic p o wer against America and Japan (d; moderate; p. 82)
52. The North American Free Trade Agreement _____ ____________. a. includes Mexico, Canada, and the United States b. includes Mexico, Brazil, a nd Colum b ia c. reduced trade between the United States and Canada d. reduced the economic power of Canada and the United States and increased the power of Mexico (a; easy; p. 82)
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53. Thirty-six countries in the Caribbean region, South America, and Central America are developing a region al trade alliance called __________.
a. NAFTA
b. FTAA c. Mercosur d. ASEAN (b; difficult; p. 83)
54. The overall effect of the North Ame r ican Free Trade Agree ment was to ________________. a. eliminate the need for im p o rt licensing b. increase the c u stoms user f ees while redu cing tariffs c. reduce trade between Mexi co and the United States d. increase trade between the United States and Venezue l a (a; moderate; p. 83)
55. International businesses have been around since about what date? a. the fifteenth century b. the seventeen th century c. the nineteenth century d. the twentieth century (c; difficult; p. 84)
56. Multinational corporations (MNCs) have only become commonpl ace since approxim ately what date? a. mid-1960s b. mid-1970s c. 1945
d. mid-1980s (a; moderate; p. 84)
57. The Association of Southea st Asian Nations includes ________________. a. the me mb er s of the European Union and India b. the me mb er s of the North A merican Free Trade Agre e ment and the European Union c. the countries of the form er Soviet Union d. none of t h e above (d; difficult; p. 83)
58. Multinational corporations are known for _______________. a. ethnocentric attitudes b. pol y centric attitudes c. mu lticentric attitudes d. having th eir h o ldings i n o ne countr y (a; moderate; p. 84)
59. Transnational corporations _________________. a. maintain operations in m u ltiple counti es, but do not allow managers in each countr y t o ma ke their own decisions b. utilize ethnocentric attitudes in financial decisions, but favor pol y cen tric views in hum an re sources is sues c. utilize decentralization to make decisions in management in local countries d. follow the tastes, preferences, and values of the h o me countr y
(c; modera te; p. 84)
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60. When an organization drops its structure based on countries and reorganizes according to ind u stries, it is pursuing a global organizational operation known as ____ _______.
a. ethnocentrism b. poly centrism c. borderless organization d. mu ltinational organization (c; modera te; p. 85)
61. Borderless organizations are developed t o _________________. a. increase effic i ency b. increase effe c tiveness c. beco me mo r e aggressive in international sales d. all of the above (d; moderate; p. 85)
62. A borderless organi zation __________________. a. utilizes ethnocentrism b. focuses its eff o rts on a polycentric attitude c. globalizes by eliminating structural divisions that im pose artificial geographical
barriers d. is another version of a m u ltinational organization (c; difficult; p. 85)
63. Which of the following is a basic de finition of a m u ltinational corporation? a. a co mp any that maintains significant ope rations in at least two different countries b. a co mp any that maintains significant ope rations in at least two different countries but is based in one hom e country c. a co mp any that maintains significant operations in at least two different countries and has mu ltiple home bases d. a co mp any that does business and pay s t axes in at least two countrie s (b; difficult; p. 84)
64. Which of the following is the basic diffe rence between m u ltinational corporations and transnational corporations? a. Multinational corporations typically do business with mo re countries th an transnational corporations do. b. Transnational corporations are run b y the parent compan y b u t m u st be owned by a local, national comp any . c. Decision ma king in transn ational corporati ons takes place locall y rather than from the hom e country. d. Multinational corporations pay mo re in taxes than transnational corporations do. (c; difficult; p. 84)
65. Which of the following is no t a feature of a transnational corporation?
a. decision making takes place at the local level. b. nationals are typically hire d to run operations in each countr y . c. marketing strategies are tai l ored to each countr y s cult ure. d. products are manufactured onl y i n the local country. (d; easy; p. 84)
66. Which of the following t y pes of global organizations reflects the polycentric attit ude? a. mu ltinational b. transnational c. polycentric d. regional (b; difficult; p. 84) http://vustudents.ning.com 56
HOW ORG ANI ZATIO NS GO GLO BAL
67. How many stages are ther e in an organiza tion s ev olut ion int o a glob al organization? a. one b. two c. three d. five (c; easy; p. 85)
68. In an attem p t to be m o re ag gressive, a co mp any mi ght export and im port m o re. This is referred to as the ___ _________. a. Stage I of doing business globally b. Stage II of doing business in a polycentric manner c. Stage III of business incorporation d. abnormal operations for an geocentric organization (a; difficult ; p. 85)
69. In Stage II of doing busines s globall y , an organization would ________________. a. begin im porting and ex port i ng b. begin im porting, b u t no t ex porting goods c. send employ ees to foreign countries as salespeople or hire brokers in other countries d. keep employ ees in the home countr y (c; modera te; p. 85)
70. In Stage III of doing business globally , an organization woul d utilize ______________. a. licensing and franchising b. strategic alliances c. joint vent ures d. all of th e above
71. Which of the following characterizes the first stage of an or ganization s global evolution? a. exporting its products to ot her countries b. cross-culturally training its managers c. hiring f o reign brokers to re present the organization s product li ne d. sending dome stic employ ees on regular foreign business trips (a; difficult ; p. 85)
72. Which of the following cha r acteriz es Stag e II of an organization s global evolution? a. exporting its products to ot her countries b. cross-culturally training its managers c. hiring foreign representatio n d. licensing anot her firm to use its brand name (c; difficult; p. 85)
73. Joint ventures are also termed ____ ________. a. licenses http://vustudents.ning.com b. franchises 57
c. foreign subsid iaries d. strategic alliances
74. Creating a strategic allian ce occurs during which s t age of an organization s global evolution? a. I b. II c. III d. IV (c; easy; p. 85)
75. A domestic firm and a foreign firm shar ing the cost of developing new prod ucts or building production facilities in a foreign countr y is called a ____________. a. franchising agreement b. joint vent ure c. foreign subsid iary d. brokering agreement (b; moderate; p. 86)
76. Which of the following cha r acterizes Stage III of an or ganization s global evolution? a. Cross-culturally training its managers b. Sending domestic employ ees on regular foreign business trips c. Hiring foreign brokers to repr esent the organization s product li ne d. Management may create a joint vent ure (d; difficult; p. 86)
77. _____________ present(s) the greatest risk to an organization goi ng international. a. Joint ventures b. Strategic alliances c. Licensing d. Foreign subsid iaries (d; difficult; p. 86)
MANAGIN G IN A GLOBAL ENV IRONMENT
78. Which of the following is not listed by your textbo ok as an area of significant challenge for an American manager working i n a foreign count ry? a. legal environment b. economic environm ent c. cultural environm ent d. religious envi ronment (d; difficult; p. 87)
79. From an econom ic standpoint, a threat to the global m anager is ___ ______________. a. widely fl uctuating inflation rates in foreign countries b. marginal revenues exceeding marginal co sts c. a stable exchange rate between currencies in various countries d. all of the above (a; easy; p. 87)
80. Comp ared to many other countries, the U.S. legal political environm ent is co nsidered
____________ . a. radical http://vustudents.ning.com b. stable 58
c. unstable d. fixed (b; moderate; p. 87)
81. Comp ared to many other countries, changes to the U.S. legal poli tical environment are considered __ _________. a. very fast and effective b. fast, but not e fficient c. radical d. s l ow
82. The reason that a nation s cultural differences are the mo st difficult to gain information about is because __________________. a. people tend to be sensitive about their own culture b. providi ng this inform atio n to foreign organizations reduces a comp etitive business advantage c. there is little written on the issue
d. culture
n atives are l east capable of explaining the unique characte r istics o f their own
83. According to the textbook, the mo st valu able framework to help managers better understand differences between national cultures was developed b y ___ ___________. a. Milton Friedman b. Michael Porter c. Geert Hofste de d. Abraham Maslow (c; modera te; p. 90)
84. _____________ is a cultural dimension in which peop le expect ot hers in their group to look after the m and protect them when they are in tr ouble. a. Power distance b. Collectivism c. Quantity of life d. Uncertainty avoidance (b; easy; p. 90)
85. Which of the following wo uld you fin d i n a countr y w ith a hig h power distance? a. Society accepts narrow difference s in organizations. b. Title carries little power, but status power is high. c. There is little respect for those in authorit y.
d. In a meeting, organizational representatives have widely different status and titles. (d; moderate; p. 90)
86. _____________ is a cultural measur e o f the degree to which people will toler ate risk and unconventional behavior. a. Power distance b. Uncertainty avoidance c. Quantity of life d. Quality of lif e (b; easy; p. 90) http://vustudents.ning.com 59
87. According to the textbook , organizations in which of th e following cultures are likely t o have formal rules and little tolerance for unusual ideas and behavior s? a. high power distance b. low power distance c. high uncertainty avoi dance d. low uncertainty avoidance (c; easy; p. 90)
88. In a society w ith a large ______________, titles, rank, and status carry a lo t of w eight. a. collectivism
b. power distance c. comp assionate conservatis m d. uncertainty avoidance (b; difficult; p. 90)
89. _____________ is a na tional culture attribute describing t h e extent to which so cietal values are character ized by assertiveness and materialis m. a. Power distance b. Uncertainty avoidance c. Quantity of life d. Quality of lif e (c; modera te; p. 90)
90. _____________ is a natio nal culture attribute that reflects the emphasis placed on relationships and concern for others. a. Power distance b. Uncertainty avoidance c. Quantity of life d. Quality of lif e (d; moderate; p. 90)
91. Which of the following i s mo st like the United States in terms of power distance , uncertainty avoidance, and quantity -of-li f e dimensions? a. Singapore
b. Great Britain c. Portugal d. Pakistan (b; easy; p. 90)
SCENARIOS AND QUESTIONS For each of the following c hoose the answer that most completely a n swers the question.
WHAT S Y OUR GLOBAL PERSPECTIVE?
First Visit Abroad (Scenario)
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Bill Sanderson is halfway over the Atlantic and is excited about his first European business trip. His goa l is to scout out potential loca tions and basically provide i nput on how the co mp any should proceed with expansion ab road. There are many options, including maintaining the business head office in th e United States and sending over com p any representatives when nec e ssary or developing a separate co mp any in Europe and hiring locals
as managers. In any case, he is confide n t about this trip but is somewhat concerned about t h e strange habits and foreign languages (if only they would just speak English like every one else!).
92. Bill s tendency to view the world only through his U.S.-based ey es and perspectives is an international business problem known as which of the following? a. nondi versity b. discrimination c. parochialism d. monolingualism (c; modera te; p. 79)
93. If Bill s company decided to open another co mp any in France but maintain the base in the United St ates, it would be considered _________________. a. a transnational corporation b. an international co mp any c. a regional trade alliance d. a mu ltinational corporation
94. If Bill s company decides to open a comp l ete ly new operation in Germany , tail oring the co mp any to local custo ms and m arket ing strategies and hiring local managers, the y would be considered ____ ___________. a. a transnational corporation b. an international co mp any c. a regional trade alliance d. a mu ltinational corporation (a; moderate; p. 84)
95. If Bill s com p any eliminated countr y -designated locations and re organized based on industr y grou ps, it would best be considered a __________________. a. borderless organization b. transnational organization c. global business alliance d. mu ltinational corporation (a; moderate; p. 85)
96. If Bill is to be co me successful as a global manager, he mu st _______________. a. atte mp t to change other cultures to Ame r ican way s b. learn and acc ept other cultures c. co mp ete internationall y but rem ain in the United States d. learn to manipulate other business cultures (b; moderate; p. 85)
Jane wants to expand her c areer opportunities in intern ational oper ations of a com p any . S h e i s 19 y ears old a nd currently a ttends a unive rsity . Sh e has onl y l i ved in her current country and has never traveled to foreign countries.
97. Jane decides t o enroll in a foreign language class to help her overcome her ______________. a. parochialism http://vustudents.ning.com b. ethnocentric attitude 61
c. monolingualism d. pol y centric attitudes (c; modera te; p. 79)
98. In talking with her advisor at the university, Jane decides she probably has a(n) __________ attitude, as she has never tr aveled abroad and only relates well to people from her hom e country. a. parochialistic b. poly centric c. ethnocentric d. geocentric (c; modera te; p. 80)
99. Jane beco mes invol ved wit h an internati onal student association to give her experiences that will allow her to unde rstand the views of students fro m other countries. She is trying t o become mo re _________ i n her attitude. a. parochialistic b. poly centric c. ethnocentric d. geocentric (d; difficult; p. 80) 100. Jane selects a class that hel p s to learn about licensing, franchises, strategic alliances,
and joint vent ures. She hopes to find an employ er who is or plans to move toward being in _________ of their gl obal business operations. a. Stage I b. Stage II c. Stage III d. Stage IV (c; modera te; p. 85)
101. In the uni versity catalog she finds a class description th at includes the acrony ms, EU, NAFTA, FTAA, and ASEAN. These refer to ________________. a. regional trade alliances b. foreign airlines c. soccer te a ms in Europe d. new mu ltinational corporati ons (a; difficult ; p. 81)
Theodore and James have formed an entreprene urial venture to dev elop software for banks and other fina ncial institutions. Their comp any is growing, but in l ooking for opportuniti es in the future, the y decide to explore international operatio ns.
What is Your Global Perspective?
102. Theodore and James feel that people in fo reign countries will not have the skills, expertise, knowledge, or experience to write, sell, or install the software. They h ave a(n) _________ attitude.
a. self-righteous b. ethnocentric c. polycentric http://vustudents.ning.com d. geocentric 62
(b; moderate; p. 80)
103. After Theodore and Jam e s began their comp any s operations in th e United States, they realized that a regional trade agree ment existe d that would allow th em to avoid tariffs in ___________. a. Japan and Ge r many b. Europe c. Western, but not Eastern Europe d. Mexico and Canada (d; difficult; p. 82)
104. The international operations in this fir m grew. Theodore and James have come to see that decentralized manage ment using foreign nationals to run operations in their home countries works well. Their firm has developed into a( n) ___ _________ organization. a. transnational b. mu ltinational c. borderless
d. international (a; moderate; p. 84)
105. A new and exciting opportunit y has appeared that enables Theodor e and Jame s to form a joint vent ure with an insurance co mp an y in Japan. T h is will m ove their firm int o a global role of a ____ _______ organ i zation. a. Stage I b. Stage II c. Stage III d. mu ltinational (c; difficult; p. 85)
106. Theodore a nd James d ecide t o a llow a f irm i n E urope t o use t he r ights t o t heir s oftware, i ts brand nam e, and s oftware sp ecifications in retu rn for a lum p-sum pay ment. This a greement is k nown a s a ________________. a. strategic alliance b. licensing agreement c. franchise d. foreign subsid iary (c; difficult; p. 86)
UNDE RSTANDI NG TH E GLOBAL ENVI RONM ENT
A Foreign Alliance Talk (Scenario)
As manager of the international department fo r yo ur comp any , you have been asked by the local Cha mb er of Commerce to deliver a speech on foreign trade. The Chamber president even goes so far a s to say and be sure to in clude the EU, NAFTA, and all that stuff becaus e we re afraid that Ross Perot is right all the good jobs will leave the United St ates. As y o u pour over your notes, y ou are try i ng t o decide what i s the best information you can present i n the allotted half hour.
107. One of the ho ttest topics of your talk will be NAFTA, an issue that has the attention of the local busi n ess co mmunity. You realize that the results are not in, but one outco me that seems certain is that _ _____________. a. the United St ates will definitel y com e o u t the worst of the three nations http://vustudents.ning.com b. Canada will profit the m o st in this arrangem ent 63
c. the expansion of NAFTA would be essential to North America s f u ture com p etitiveness and econom ic power d. U.S. high-tech com p anies, such as comp uter manufact urers, will be hit hard (c; difficult; p. 82)
108. You will close by giving t h em a likely view of the fu ture of NAFTA, which suggests that _______________. a. it will likel y disband by the y ear 2010 b. it is expected to m erge with the EU by 2020
c. other Latin American counties will soon become partners d. Cuba is the next partner in NAFTA (c; modera te; p. 83)
A Different View (Scenari o)
John has done well in his co mp any . In only 5 y ears, he has risen to the position of divisional manager. However, he knows that in order to rise to the level of senior management, he needs to spend some tim e managing abroad in his co mp any s foreign su bsidiaries. Althoug h he has traveled to foreign count ries on business and vacations, he has never lived abroad and wonders what differences he would find. He is considering applying for a new foreign-based position, but first wants to learn about some basic differences between managing in t h e United States and managing in a foreign cou n tr y . He res earche d the topic of internationa l management and foun d m a ny helpf u l f acts about countries and their people.
109. John found ou t that, com p ared to managers in many other countri es, U.S. managers ar e accustomed to legal and political sy stems that are ____________. a. stable b. fixed c. boring d. extreme (a; easy; p. 87)
110. John foun d out that wealthier nations, such as the United States, tend to ______________.
a. have high uncertainty avoi dance b. be indivi dualistic c. be collectivist d. have large power distance (b; moderate; p. 90)
111. John also fou nd out that i n some countries, such as Venezuela, titles, rank, and status carry a lot of weight. These countries have a large _________________. a. uncertainty avoidance b. quality of life c. quantity of lif e d. power distance
112. John knew that he did not want to manage in a countr y where the people have high anxiety, nervousness, and stress. He wil l , th erefore, try to avoid countries chara cterized as having high _______________. a. uncertainty avoidance b. quality of life c. quantity of lif e http://vustudents.ning.com d. power distance 64
The European Expansion (Scenario)
You have been hired by a com p any to look at th e way s to best move the company int o the European m a rket but you have to first determ in e what kind of com p any you are dealing with.
113. If the co mp any that has hired y ou is primarily used by manufacturing organizations, it is a ___________. a. licensing company b. franchising com p any c. strategic alliance d. joint vent ure (a; mode rate; p. 86)
114. If the co mp an y that has hired y ou is prim arily used by service organizations, it is a ______________. a. licensing company b. franchising com p any c. strategic alliance d. joint vent ure (b; moderate; p. 86)
115. If the comp an y t h at has hired y o u is really a partners hip between an organization and
a foreign com p any
in wh ich both share resources a nd knowledg e in developing new
products, than it is a __ _____________. a. licensing company b. franchising com p any c. strategic alliance d. joint vent ure (c; moderate; p. 86)
The Overseas Assignment (Scenario)
Christopher has a degree in business administrati on and has worked for a m ajor corporation for 5 y ears. He is offered a chance to work in another country .
116. Through research on the Internet, Christopher finds that in this country s social fram e work, people are expected to look after others in their fam ily ( o r organization) and protect th em when they are in troub le. This society tends to su pport ______________. a. collectivism b. parochialism c. indivi dualism d. monotheism (a; difficult; p. 90)
117. This new country s people are favorably influenced by Christopher s job title, and the status given b y his experience of having worked in t he hom e office for 5 y ears. This
countr y has a large _______________. a. interest in attracting foreign executives b. sense of uncertainty avoida nce http://vustudents.ning.com c. uncertainty avoidance 65
d. power distance (d; difficu lt; p. 90)
118. Through talking to executives in the inte rnational divi sion, Christopher realizes that his home coun try has the highest individualis m, low power distance and uncertainty avoidance, and a high quantit y of life. H e probabl y li ves in _____________. a. Great Britain b. Japan c. United States d. Canada (c; difficult; p. 90)
Multiple-Cho ice Questio ns For each of the following c hoose the answer that most completely a n swers the question.
WHAT IS SOCIAL RESPONSI BILI TY?
26. Employ ee relations, philan t hrop y, pr icin g, resource conservation, product quality and sa fety , and doing business in countries that violate human rights are so me obvious exam ples of __________________. a. social responsibilit y ethics that managers mu st decide on a daily basis b. social responsibilit y issues that em ploy ees mu st confront while at work c. areas of social responsibilit y that infl uence managers, not em ploy ees d. decisions that managers face that have a social responsibilit y dim ension (d: hard; p . 103)
27. The classical view of social responsibilit y holds that management s onl y social responsibilit y is to ___________________. a. m axim i ze organizational profits for stockholders
b. maximi ze adherence to the laws for sto ckholders c. maximi ze organizational profits for stakeholders d. minimi ze adherence to the laws for stockholders (a; easy; p. 100)
28. Which of the following is a ssociated with the classical view of social responsibility? a. economist Robert Reich b. concern for social welfar e c. stockholder fi nancial return d. voluntary activities (c; m o dera te; p. 104)
29. Proponents of the socioeconom ic view o f social responsibilit y believe that business organizations are _______________. a. not just merely econom ic institutions b. just merely econom ic institutions c. to be leaders in social responsibilit y d. not to be involved in social responsibilit y, but t o maximize profits for stakeholders (a; moder ate; p. 104 )
30. Apply i ng social criteria to investment decision refers to ________________. a. socioeconom ic view http://vustudents.ning.com b. social responsiveness 66
c. social responsibilit y d. social screeni n g (d; mo derate; p. 104)
31. ______________ is define d as a business fir m s obligation, be y ond that required by law and econom ics, to pursue l ong-term goals that are good for societ y. a. Social obligation
b. Social responsibilit y c. Social scre ening d. Values-based management (b; mo derate; p. 103)
32. The mo st outspoken advoc ate of the classical view of social responsibilit y is economist and Nobel laureate, _____ _____________. a. Carnegie Milton b. Charles D arwin c. Milton Freeman d. Milton Friedman (d; hard; p . 100)
33. The belief that businesses should be responsible because such acti ons are right for their own sake is known as which argument for social responsibility? a. public expect ation b. ethical obligation c. public im age d. discouragement of further government regulation (b; mo derate; p. 102)
34. The belief that businesses that help so lve difficult social problem s create a desirable community and attract and keep skilled em ployees is known as which argum ent f o r socia l r e sp onsibility ? a. ethical obligation
b. public image c. better environ ment d. possession of resources (c; m o dera te; p. 102)
35. A leading proponent of the classical view argues that any tim e managers decide on their own t o spend their organization s resources fo r the social good, are _________________. a. contributi ng s o cial benefits in the name of goodwill b. just doin g wh at the government says they have to do c. helping make society a bett er place for everyone to live d. adding to the costs of doing business (d; hard; p . 102) http://vustudents.ning.com 67
36. The socioeconomic view is that management s social responsibility goes beyond m aking profi t s to i n clude __________________. a. placing m e mbers of society on welfare b. protecting and im proving s o ciety s welfare c. mini mi zing the welfare of society in exc h ange for profits d. protecting and im proving t h e organization s profits (b; mo derate; p. 101
37. Which argument for social responsibilit y puts forth the belief that by becom i ng socially responsible, businesses can expect to have less government regulation? a. discouragement of further government regulation b. stockholder in terests c. public expect ations d. public im age (a; mo derate; p. 102)
38. Which argument for social responsibilit y puts f o rth the belief that an im b alance between the large am ount of power held by firm s an d their responsibilit y is harmful to the public g ood? a. public expect ation b. ethical obligation c. public image d. balance of responsibility and power (d; easy; p. 102)
39. The belief that businesses have the financial, technical, and man agerial resources to support needed public and charitable projects is known as which argum ent? a. public expect ations b. ethical obligations c. public image d. possession of resources
(d; mo derate; p. 102)
40. Social obligation is the obli gation of a business to meet its _______________. a. social and technological responsibilities b. economic and social responsibilities c. technological and econom ic responsibilities d. economic and legal responsibilities (d; hard; p. 102)
41. Social responsiveness refer s to the capacity of a firm t o adapt to changing _________________. a. societal conditions b. organizational conditions c. societal leader s d. organizational managers (a; easy; p. 102)
42. The belief that businesses are being socia lly responsible when they attend only to economic interests is kn own as which ar gument against a firm being socially responsible? a. dilution of purpose http://vustudents.ning.com b. violation of p rofit maximization 68
c. costs d. too m u ch power (b; easy; p. 102)
43. In the United States, a company that me ets federal pollution contro l standards and does not discriminate in hiring , pr omotion, and p ay _ ______________. a. is meeting its social obligation and mo re because they are tryi ng to be a good citizen b. is not even meeting its social obligatio n, though there are laws in some of these areas of social responsibilit y c. is meeting its social obligation a nd nothing mo re beca use laws mand ate these actions d. is meeting its social responsiveness and nothing m o re because society demands these actions (c; hard; p. 102)
44. The belief that the costs of social activity are passed on as higher prices to cons umers is known as whi ch argument against a firm being socially responsible ? a. violation of p rofit maximization b. dilution of purpose c. costs d. lack of skills (c; m o dera te; p. 102)
45. The belief that firm s pursuit of social goals would give them t oo much power is known as what argument in opp osition to a fir m being socially responsible? a. costs b. lack of skills c. lack of broad public support d. too m u ch power (d; mo derate; p. 102)
46. The belief that business leaders should not direct social policy because there is no direct line of social accountability to the publ ic is known as what argument against a firm being socially responsible? a. dilution of purpose b. costs c. too m u ch power d. lack of accountability (d; mo derate; p. 102)
47. The aspect that differentiates social responsibilit y from other si mi l ar concepts is that it ________________. a. adds an ethical i mperative. b. adds a legal imp erative c. adds a m o ral i mperative d. considers soci al norms (a; easy; p. 103)
48. When a firm advertises that it only uses recycled paper product s, it is ________________. http://vustudents.ning.com a. meeting its social obligation 69
b. meeting social responsibilities c. being socially responsive d. paying attenti on to t h e botto m line (c; difficult; p. 103)
SOCIAL RESPONSI BILITY A ND ECONOMIC PERFORMANCE
49. One should be cautious in the interpr etation, but a summary of m o re than a dozen studies analy zing the relationship between organizational social responsibility and economic performance provides what conclusion? a. Being socially responsible causes good economic perf ormance. b. Good econo mic performance allows firms to be socially respo n sibl e. c. There is a po sitive relationship between corporate social involvem ent and economic performance. d. Corporate social involveme nt tends to devalue stock prices in the long run. (c; difficult; p. 104)
50. Overall, does the evidence suggest that so cially respo n sible behaviors b y organi zations lower a firm s economic performance? a. y es b. c. no T h ere is not enough ev idence at this tim e to kno w for sure.
d. It depends on the activity with which the organization is invo lved. (b; easy; p. 104) 51. Applyi ng social criteria to investment decisions is a term used to describe ______________. a. social obligation b. social responsibilit y c. social scr eeni ng d. social autonom y (c; m o dera te; p. 104)
52. Under the concept of social obligatio n, th e organization _ _______________. a. does what it can to m e et the law, and a little bit m o re for stakeholders b. fulfills its obl igation to the law and its stakeholders c. fulfills its obl igation to the stakeholders, which makes it fulfill the la w, too d. does the mi nim u m required by law (d; mo derate; p. 102)
53. There is __________ t o say that a comp any s socially responsible actions significantl y hurt its lo ng-t erm econom ic performance. a. not any evidence
b. little evidence c. a lot of eviden ce d. mounting evidence (b; hard; p . 104)
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VALU ES-B ASED MA N AGEMENT
54. ______________ is an approach to managing in wh ich managers establish, promote, and practice what an organization stands for and believes in. a. Cause-related marketing b. Values-based management c. Ethical marketing d. Belief managem ent (b; mo derate; p. 107)
55. Values shared among the organizational memb ers can serve as _________________.
a. a reason to follow federal a nd state environmental la w s b. guidepost fo r managerial decisions to invest in new technolog y c. shaping managerial decisions to invest in econom ic conditi ons d. a guidepost fo r managerial decisions and actions (d; hard; p . 107)
56. A corporation s ____________ act(s) as guidepost(s) for man agerial decisions and actions. a. shared values b. team spirit c. marketing effo rts d. industry stan dards (a; mo derate; p. 107)
57. Which of the following is true regarding shared corporate values? a. Individuals adapt easily to shared corporate values. b. Top m anage ment dictates shared corporate values. c. It is not easy to establish shared corporate values. d. Most corporations will be unable to successfully establish shared corporate values. (c; m o dera te; p. 108)
THE GREENING OF MANA GEMENT
58. The recognition of the clos e link between an organization s decisions and activities and
its impact on the natural environm en t is referred to as _________________. a. corporate social responsibilit y b. social responsiveness c. shared corporate values d. greening of management (d; mo derate; p. 105)
59. Natural resource depletion, global warm ing, poll u tion , and toxic wastes are examples o f _______________, a. social problems b. global envir onmental probl ems c. social responsiveness d. comp etitive strategies (b; easy; p. 105)
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60. Which of the following i s not an approach organizations can take with res p ect to environm enta l issues?
a. legal b. market c. stakeholder d. responsibility
61. With the stakeholder appr oach of dealing with environm ental issues, the organization chooses to r espond to ______________. a. the demands made by the st rongest stakeholders b. mu ltiple demands made by social stakeh olders c. the demands made by g o vern mental stakeholders d. mu ltiple demands ma de by stakeholders (d; hard; p . 106)
62. The ____ __________ ap pr oach to environm en tal issues is when organizations respond to environm e n tal preferences of their customers. a. legal b. market c. stakeholder d. responsibility (b; m o derate; p. 106)
63. Which of the following approaches toward environmental issues exhibits the highest degree of environm ental sensitivit y and is a good ill ustration of social responsibility? a. legal approach b. market approach c. stakeholder approach d. activist approach (d; mo derate; p. 106)
64. According to the model of the expansion of an organization s social responsibilit y , Stage 2 adds an interest in ________________. a. stockholders b. hum an resource concerns c. safe products d. fair prices (b; difficult; p. 101)
65. According to the model of the expansion of an organization s social responsibilit y , Stage 3 is noted b y an adde d interest in ________________. a. stockholders b. hum an resource concerns c. owners d. custo mers/ suppliers (d; mo derate; p. 101)
MANAGERIAL ET HIC S
66. Which of the following is a basic definition of ethics? a. mo ral guidelines for behavior b. rules for acknowledging the spirit of the law c. rules or princ i ples that define right and wrong cond uct http://vustudents.ning.com 72
d. principles for legal and mo ral development
(c; m o dera te; p. 110)
67. The __________ is concerned with respecting and pr otecting indivi dual liberties and privileges such as the rights to privac y , freedo m of conscience, free spee ch, life and safety, and due process. a. utilitarian view b. rights view c theory of justice view d. integrative social contracts theory view (b; easy; p. 110)
68. Which of the following is not mentioned in the textb ook as one of the four perspectives on business et hics? a. utilitarian view b. principled view c. rights view d. theory of justice view (b; difficult; p. 110)
69. How many stage are in the m odel of an organization s social respo n sibility
progression? a. one b. two c. three d. four (d; easy; p. 101)
70. The theory of justice view of ethics say s that manager s are to ___________________. a. be fair to the stockholders by ensuring t h at they receive an equitable return on their investment b. impose and enforce rules fairly and im p artially even t hough it may require that a legal rule or regulation ma y be violated c. i mpose and enforce rules fairly and imp artially and do so by following all legal rules and regulations d. impose and enforce rules fairly and im p artially as determined by a governm ental official (c; moderate; p. 110)
71. Which of the following encourages efficien cy and p r oductivit y a nd is consistent with the goal of profit maximization? a. utilitarian view b. principled view c. rights view d. theory of justice view
(a; mo derate; p. 110)
72. The rights view of ethics is based on which of the following? a. decisions based on their outcomes or consequences b. the im position and enforcement of fair and impartial rules c. respect and protection of i ndivid u al libe rties and freedom s d. the process used to deter min e the distribution of resources http://vustudents.ning.com (c; m o dera te; p. 110) 73
73. The integrative social contracts theory of ethics is based on which of the following? a. the process used to deter min e the distribution of resources b. decisions based on their outcomes or consequences c. the im position and enforcement of fair and im partial rules d. the existing ethical norm s in ind u stries and corporations (d; difficult; p. 110)
74. Studies have shown that most businesspeopl e tend to hold which attitude toward ethical behavior? a. the utilitarian view b. the rights view c. the theory of justice view
d. the integrative social contract theory view (a; mo derate; p. 111)
75. Reasoning at the ______________ level of mo ral developm en t indicates that mo ral values reside in m aintaining the convent iona l order an d the expectations of others. a. preconventio nal b. conventional c. principled d. arrival (b; easy; p. 111)
76. A personality measure of a person s convictions is _______________. a. mo ral development b. ego strength c. locus of control d. social desirab ility (b; mo derate; p. 112)
77. ______________ is a personalit y attrib ute that m e asures the degree to which people believe they c ontrol t h eir o wn fate. a. Ego strength b. Locus of control c. Social responsibilit y d. Social obligat ion (b; easy; p. 112)
78. A manager who believes th at she worked hard and met the productivit y goals despite bad weather is display ing what individual characterist i c? a. strong self-image b. high m o ral development c. low im pression management d. internal locus of control (d; mo derate; p. 112) http://vustudents.ning.com 74
79. Which of the following organizational st ructural characteristics would m o st like l y result in m a nageri al ethical behavior? a. few job descr iptions b. formal rules c. mixed mes sa g es from authority figures d. performance appraisal sy stems focus ed on outcome s (b; mo derate; p. 113)
80. Which of the following i s true concerni ng t h e im p act of organizational culture on ethical behavior?
a. Low conflict tolerance lead s to ethical behavior. b. A strong culture will support high ethical standards. c. Conflict tolerance is related to u n ethical behavior. d. A culture that is high i n control tends t o encourage unethical behavior. (b; mo derate; p. 113)
81. Issue intensity, as an issue that affects et hical behavior, is described as which of the following? a. the characteri stics of the ethical issue its elf b. the level of control an d inf l uence one has over the event c. the cultural strength of t h e organization d. the organizational structure (a; difficult ; p. 114)
82. Which of the following is not one of the six determinants that are relevant in deciding issue intensity? a. How great a harm (or benefit) is done to victim s (or beneficiaries) of t h e ethical act in question? b. What is the probability t h at y our act will be discovered? c. How mu ch consensus is there that the act is evil (or good) ? d. What is the length of t i me between the act in question and its expected consequences? (b; mo derate; p. 114)
83. The Foreign Corrupt Practices Act __________ sm all payoffs to foreign
governm ent employ ees whose duties are primarily administrative or clerical when such payoffs are an accepted part of doing business in that country . a. encourages b. expressly prohibits c. does not expressly prohibit d. recommends (c; hard; p. 115)
84. Global organizations mu st ____ ______ t h eir ethi cal guidelines so th at employ ee s know what is expected of them while working in a foreign location. a. clarify b. provide c. establish http://vustudents.ning.com d. reward 75
(a; hard; p . 115)
85. The 1977 Foreign Corrupt Practices Act makes it illegal for U.S. firms to _________________. a. make any cash pay ment for deferential treatment in a foreign transaction b. make any pay ment over 5 percent of tota l cost toward adm i n i strative overhead in
foreign transactions c. knowingl y co rrupt a foreign official d. make any pay ment to foreign clerical or m i niste r ial e mploy ees in exchange for service (c; difficult; p. 115)
86. Which of the following is no t a way for management to reduce unethical behavior? a. select individuals with high ethical standards b. establish codes of conduct c. provide ethics training d. monitor em ploy ee telephon e calls (d; m o derate; p. 116)
87. A _____________ is a formal statement of an org anization s p rimary values and the ethical rules it expects its employ ees to follow. a. mission state ment b. statement of purpose c. code of ethics d. vision state ment (c; m o dera te; p. 116)
88. Nearly ___ ___________ percent of Fortune 500 companies have a code of ethics. a. 65 b. 75 c. 85
d. 95 (d; easy; p. 116)
SCENARI O S AND QUES TIONS For each of the following c hoose the answer that most completely a n swers the question.
WHAT IS SOCIAL RESPONSI BILI TY?
Two Opposing Views of Social Responsibility (Scenario)
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The Board of Directors of Acme Generating Corporation is m e eting to consider the construction of a new elect rical generation f acility somewhere alo ng the Muspet an River basin. Director Appleton would like t o have it be a coal-burning plant located in a remo te ar ea because of the moderate c o sts of generating and any ash fro m the smokesta cks would not affect the city . Director Witworth wants a nuclear plant located near the city of Muspetan because the city needs th e electricity the m o st and not onl y does nuclear production the leastexpensive generating m eth od but utilizes rene wable fuels. Director Jossleman wants a generating plant that uses combustible fuels collected from the city s garbage with the m etals and glass sent to recy cling and the food material s buried in the city landfill. By locating near the downtown go vernment area, steam could be used for heating th e government buildings after it has passed through the generating turbi nes, and the exhaust would be scrubbed to make it clean. He believes th at this approach would provide the electricity needed for the growing city, the heat for governm ent buildings, recy cling of resources, and mi nimize the impact on the city s landfil l. The other d i rectors have not offered an y input t o the discussion.
89. Director Witworth is following which of the social responsibility views? a. social responsiveness b. social obligation c. classical view of social responsibility d. socioeconomic view of social responsibility (c; m o dera te; p. 100)
90. Director Appleton is followi ng which of t h e social resp onsibility vie ws? a. social responsiveness b. social obligation c. classical view of social responsibility d. socioeconomic view of social responsibility (d; mo derate; p. 100) 91. Director Josslem an being m o stly which of the following? a. classically social responsible b. classically social responsive c. socially obligated d. socially responsive (d; hard; p . 102)
92. To be at Stage 4 in the progression of an organization s social responsibility, Acme Generating Corporation would ch oose ________________.
a. Director Witworth s proposal b. Director Jossel man s proposal c. Director Appleton s propos al d. a proposal that has not y et been submitted to the Boar d (b; hard; p . 101)
An Academic Question (Scenario)
As a university stu d ent, you wonder abou t some of the practices in the universit y and just how so me of these practices sho u ld be eval ua ted in reference to social is sues.
93. If y our university were paying mi nim u m wage, when necessary, and app l y ing the mini mu m standard to laws, such as affirmativ e action, it woul d be said to have f u lfilled its _______________. a. social obligation b. social responsibilit y c. social responsiveness d. social expect ation (a; mo derate; p. 102)
94. If y our university provides job-share programs, builds a day- care facility , and only uses recy cled paper, it could be said to be _____________. a. fulfilling it s social obligation b. socially aware c. socially responsive
d. socially im ag e conscious (c; m o dera te; p. 102)
95. Which of the following i s not a reas on why it makes sense f o r y our university to continue to be socially responsive? a. positive consumer i mage http://vustudents.ning.com b. lower cost 77
c. mo r e dedicated workforce d. mo r e mo tivat ed workforce (b; easy; p. 102)
96. If your state legislature criticized your university for incurring the cost of being socially responsive, the university might point to a series of studies that indicates that the relations hip between corporate social involveme nt and econom ic performa nce is _______________. a. very negative b. negative c. neutral d. positive (d; mo derate; p. 102)
97. Your uni versity has tried to prom ote the establishment of shared values so that all memb ers will understand its beliefs. The university has established ____ __________ management. a. values-based b. i mage c. socially respectable d. MBO (a; easy; p. 112)
Summing Up Social Responsibilit y (Scenario)
Max Proffit, Director of Research and Development for National Products Comp any , has learned that a new material has been develope d in his department that appears as though it will work in several products already bei ng manufactur ed by National Products Com p any . He has discussed the potential savings with his two assist ants, Susie Merriwe ather, a nd Moe Gaines, and Rush Onward, vice president of Product Development. Susie has stated her opposition to the use of the new product because its d u rabilit y and flam e retardance have not co mp leted testing and have not been certified b y the co mp any s t h ir d-party testin g laboratory . Moe argues that the initial tests that their R&D depart ment have run indicated minimal problems with both durabilit y and flam e retardance. R u sh stated that he has been in several meetings lately where the need to increas e earnings-per-share have been repeated ly e mphasiz ed by the comp an y president. Rush has told Max that a decision has to be made within the week about the new product s use by Nati onal Prod ucts Com p any .
FACT ORS THAT AFFECT MANAGERIAL ET HICS
98. If Max resists his im pulse t o oka y use of the product because of the need for increased earn ings-per-share, though it has not been certified, he probably _________________. a. will be dem o ted to a lower-paying j ob http://vustudents.ning.com b. has a strong ego strength 78
c. will lose Susie as an employ ee because she will quit d. has an external locus of control (b; hard; p . 112)
99. If Max approves use of the product because of percei ved pressure for the need of increased earnings-per-share, though it has not been certified, he probabl y ________________. a. has a strong ego strength b. is using the so cioeconomic view of social responsibility c. has an internal locus of control d. has an external locus of control (d; hard; p . 112)
100. Susie s opposition to the us e of the new product is an indication tha t she probably __ ____________. a. has an internal locus of control b. has an external locus of control c. has a weak ego strength d. is using the cl assical view of social responsibilit y (a; mo derate; p. 112)
101. Moe Gaines support i n fav o r of usin g th e new product is an indication that he probably __ _____________ . a. supports greening of the organization s profits b. has a strong ego strength c. has a weak ego strength d. is using the so cioeconomic view of social responsibility (c; hard; p. 112)
ETHICS IN AN IN TERNATION AL CONTEXT
The Fee (Scenario)
Isaac Razzlef rat has been t h e Import and Export Ma nager for Overseas Exports Co mp any of New Orleans, Louisiana, in a foreign co untry during the last 5 y ears. During this time, he has beco me quite familiar with the national laws and with the local culture when sending goods through the Customs Insp ectors step of the import/export process. Isaac has learned that the Customs Insp ectors are paid low wages. He has also beco me well acquainted with the
Admi nistrator of Custo ms for Im ports and Exports in this countr y . Because of these fam iliarities, he has learned that it is a normal practice to pay the Customs Inspectors a payment prior to their accepting the goods for in spection. Isaac has decid ed to pay an additional small fee to the Custo ms In spectors when he has a rush or der that needs to pass through customs quickly . Isaac recent l y learne d that his comp etitor from Utibana is also making monthly pay ments to the Admi nistrator of Customs, though other com p anies are not.
102. Under the Foreign Corrupt Practices Ac t, the norm al practice of payments to the Customs Inspectors is _________________. a. against the law regardless of it being a normal practic e b. okay because the y receive low wages an d it is an acce pted part of doing business in that country c. okay because their duties are primarily clerical in nature d. against the law because it could lead to smuggling of contraband out of the countr y http://vustudents.ning.com (b; mo derate; p. 115) 79
103. If Isaac were to m ake a mo nthl y pa y men t to the Admi nistrator of Customs as his comp etito r from Utiban a is doing, under the Foreign Corrupt Pr actices Act he would be __________________. a. okay within the law, becau se his co mp et itor has made it a common practice
b. in violation of the law because it could le ad to smuggling of contraband out of the countr y c. in violation of the law beca use the Admi nistrator in not in an admi nistrative or clerical duty position that normally rece ives pay ments d. okay within th e law if the payment unless the payment is in excess of $1,000 (c; hard; p. 115)
104. When Isaac makes the small fee payments to get a rush order through the customs, under the Foreign Corrupt Pra ctices Act he could be ______________. a. in violation of the law because of it not being a norm al practice b. okay because the y receive low wages c. okay because their duties are primarily clerical in nature d. in violation of the law because it could le ad to smuggling of contraband out of the countr y (a; hard; p . 115)
105. When Isaac fo llows the normal practice of pay ments to the Customs Inspectors, he probably feels as though __ _______________. a. his ego strength is weak b. his ego streng th is strong c. his locus of control is internal d. his locus of control is external (d; hard; p . 112)
An Academic Question (Scenario)
You have just witnessed accounting errors at your com p any t h at are significant in nature. In making y our decision on whether or not to come fo rward, there are four major theories that you can use in going about making your decision. The fo llowing four questions present different ways in which y ou will mak e your ethical decision.
106. This theory uses a quantitative me t hod for m a king ethical decisions by looking at how to provide the greatest good for the greatest number of people.
a. Theory of justice of ethics b. Integrative social contracts c. Right view of ethics d. Utilitarian view of ethics (d; easy; p. 110)
107. Under this approach, managers impose and en fo rce rules fairly and im partially and do so by foll owing all legal rules and regulations. A manager using this theory wo uld decide to provide the same rate of pay to indivi duals who are si milar in their level of skills, performance, gender, and so on. http://vustudents.ning.com a. Theory of justice of ethics 80
b. Integrative social contracts c. Right view of ethics d. Utilitarian view of ethics (a; mo derate; p. 110)
108. This theory o f ethics is co ncerned with respecting and protecting individ u al liberties and privileges such as the right to privacy . a. Theory of justice of ethics b. Integrative social contracts c. Right view of ethics d. Utilitarian view of ethics (c; m o dera te; p. 110)
109. This theory proposes that ethical decisions be based on existing ethical norms in industries and communities in order t o determ ine what constitutes right and wrong. a. Theory of justice of ethics b. Integrative social contracts c. Right view of ethics d. Utilitarian view of ethics (b; mo derate; p. 110)
Ethics Training (Scenario)
You are an employ ee of a very large co mp any and when walking thro ugh th e halls y ou constantly hear one of y our m ale coworkers call any fem al e em ploy ee, babe. There have
been many co mp laints and the comp any has decided to use this as an ethical training example.
110. The comp any brings in hel p from outside to evaluate the situation. There ar e routine evaluations that are perform ed regularly, called ____ _________. a. ethical training sessions b. formal protec tive mechanis ms c. independent s o cial audits d. inform al behavior m odification (c; easy; p. 119)
111. An alternative for the organization to pr ovide formal means that protect em pl oyees who face ethical dilemmas so that they can do what s right without fear of repr i mand would be __ ________________. a. ethical training sessions b. formal protec tive mechanis ms c. independent s o cial audits d. inform al behavior m odification (b; mo derate; p. 119)
The Environmental Study (Scenario)
You have just been challenged b y your supervisor to st udy and repo rt y our findin g on approaches that organizations use when dealing with th e environm ent. Your boss tells y ou to
study the four major approaches, differen tiate between them, and report to him in a week. http://vustudents.ning.com 81
112. This approach deals with organization responding to the environm ent because of the preferences of their customers. a. stakeholder approach b. market approach c. legal approach d. activist approach (b; easy; p. 106)
113. Under this approach, the or ganization works to m eet the environm ental demands of mu ltiple groups of people i n cluding em p l oyees, suppliers, or the community . a. stakeholder approach b. market approach c. legal approach d. activist approach (a; easy; p. 106)
114. Under this approach, organizations exhibit little environmental sensitivit y . They obey r ules and regulations willingl y without legal challenge and m ay even try to use these rules to their own advantage.
a. stakeholder approach b. market approach c. legal approach d. activist approach (c; easy; p. 106)
115. Under this approach, the orga nization looks for way s to respect and preserve the earth and its natural resources. a. stakeholder approach b. market approach c. legal approach d. activist approach (d; easy; p. 106)
Moral Development (Scenario)
You have had serious ideas of late about stea ling money from petty cash in order to get back on top of your back rent. Upon reading Chapter 5 of th e textboo k, you learn ther e are levels of mo r al development each com posed of two stages. You are ashamed of y our thoughts and read mo r e to see w h ere y ou are in terms of your own m o ral development.
116. At this level, a person s choice between right or wrong is based on personal characteristics involved, such as phy sical punishment, reward, or exchange of favors.
What level are you in with these chara ct eristics? a. principled level b. preconventional level c. conventional level d. value level (b; m o derate; p. 111) http://vustudents.ning.com 82
117. Ethical reasoning at this level indicates that mo ral val u es reside in maintaining expected standards and living up to the expecta tions of others. This level is referred to as ______________. a. principled level b. preconventional level c. conventional level d. value level (c; m o dera te; p. 111)
118. At this level, indivi duals make a clear effort to define mo r al principles apart from authority of th e groups t o which the y b elong or society i n general. This level is referred to as _________________. a. principled level b. preconventional level
c. conventional level d. value level (a; m oderate; p. 112)
THE DECISION-M AKI NG PROCESS
30. Decision mak i ng is (sim plistically ) ty pically described as which of the following? a. deciding what is correct b. putting preferences on paper c. choosing among alternatives d. processing information to co mp letion (c; m o dera te; p. 134)
31. A series of eight steps that begins with identifyi ng a problem and decision criteria and allocating weights to those criteria; mo ves to developing, anal y zing, and selecting an alternative that can resolve the problem; im pl e ments th e alternative; and concludes with evaluating the decision s effectiveness i s the ___________. a. decision-mak i ng process b. managerial pr ocess c. maxi mi n style d. bounded ratio nalit y approa ch (a; easy; p. 134)
32. A(n) ____________ is the existence of a discrepancy between existing and a desired state of affairs. a. opportunit y b. solution c. weaknes s d. problem (d; easy; p. 134)
33. The first step in the decision-ma king process i s which of the following? a. developing d ecision criteria b. allocating weights to t h e criteria c. analy zing alternatives d. identif y i ng a problem http://vustudents.ning.com (d; m o derate; p. 134) 83
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34. In identif y ing the problem, a manager _________________.
a. co mp ares the current state of affairs with where they want to be b. expects problem s to be defined b y neon lights c. looks for discrepancies that can be postponed d. will not act when there is pressure to ma ke a decision (a; easy; p. 135)
35. The process of selecting decision criteria is accomp lished by ________________. a. massaging the data that will support a gi ven decision b. flipping a coin to pr oduce a 50-50 chance of being right c. determ ining what is relevant in m aking the decision d. examining the difference in the opportunities available (c; challenging; p. 136)
36. Which of the following stat ements is true concerning problem identification? a. Problems are generally obvious. b. A sy mp to m a nd a problem are basic ally the sa me. c. Well-trained managers generally agree on what is considered a proble m. d. The problem mu st be such that it exerts some type of pressure on t h e manager to act. e. To be considered a problem, managers mu st be aware of the discrepancy but not have the resources necessary to take action. (d; mo derate; p. 134)
37. If all criteria in the decision making are equal, weighti ng the criteria ______________. a. improves decision making when large numbers of criteria are involved
b. is not needed c. produces excellent decisions d. i mproves the criteria (b; easy; p. 136)
38. The final step in the decision-making process is to _______________. a. pick the criteria for the next decision b. reevaluate the weightings of the crite ria until they indicate the correct outcome c. evaluate the outcome of the decision d. reassign the ratings on the criteria to find different outco mes (c; challenging; p. 138)
39. Which of the following mu st be present in order to initiate the decision-making process? a. plenty of time b. pressure to ac t c. a lack of authority d. a lack of resources (b; mo derate; p. 134) http://vustudents.ning.com 85
40. To determine the ___ __________, a m a nage r mu st determ ine what is relevant or
important to resolving the problem. a. geocentric behavior needed b. num ber of allowable alternatives c. weighting of decision criteria d. decision criteria (d; mo derate; p. 136)
41. Which of the following is the step i n the decisi on-making process that fo llows identifyi ng a problem and decision criteria? a. allocating weights to t h e criteria b. analy zing the alternatives
c. selecting the best alternati v e d. i mplementing the alternative (a; mo derate; p. 136)
42. In allocating weights to the decision crite ria, which of the following is helpful to rem e mber? a. All weights mu st be the sa me. b. The total of th e weights should sum to 1 . 0. c. Every factor criterion considered, regardless of it s i mportance, mu st receive so me weighting. d. Assign the most im portant criterion a sco re, and then assign weights against tha t standard. (d; difficult; p. 136)
43. In Step 6 of the decision-making process, each alter n ative is evaluated by appraising it against the __ ___________. a. subjective goals of the decision m aker b. criteria c. assessed valu es d. implementation strateg y (b; mo derate; p. 138)
44. Selecting an alternative in the decision- making process is acco mp lis hed by __________________. a. choosing th e alternative with the hi ghest score b choosing th e one y o u like best c. selecting the alternative that has the lowest price d. selecting the alternative that is the mo st reliable (a; easy; p. 138)
45. __ __ __ __ __ ____ inc ludes con veying a decision t o those affected and get ting their commit ment to it. a. selecting an a lternative b. evaluation of decision effec tiveness c. i mplementation of the alternatives d. analy zing alternatives (c; m o dera te; p. 138)
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46. Which of the following is important in e ffectively im pl e menting the chosen alternative in the decision-making process? a. getting u pper - management support b. double-checking your anal y sis for potential errors b. allowing those i mpacted by the outcom e to participate in the process d. ignorin g criticism concerning your chos en alternative (c; m o dera te; p. 138)
47. Which of the following is the final step in the decision-making process? a. identifyi ng the problem b. evaluating the decision s effectiveness c. identifyi ng decision criteria d. selecting an a lternative that can resolve the problem (b; easy; p. 138)
48. Which of the following is i mportant to re me mber in evaluating the effectiveness of the decision- mak i ng process? a. ignore criticism concerning the decision-making process b. you m ay have to start the whole decision process over
c. Restart the decision- mak i ng process if the decision is less th an 50 percent effective. d. Ninety percent of proble ms with decision m aking occur in the implementation step. (b; difficult; p. 138)
THE MANAGER AS DECISION MAKER
49. Managers are assumed to be ______ ________; they make consistent, value-m a xim i zing choices within specified constraints. a. rational b. leaders c. organized d. satisficers (a; easy; p. 139)
50. It is assu med that a perfectly rational decision m aker ______________. a. does not follow rational assumptions b. does not consider value maximi zing as an objective c. offers inconsistent decisions d. would be ob jective and logical (d; mo derate; p. 139)
51. Rational ma nagerial decision making assu mes that decisions ar e mad e in the best ______________ in terests of the organiz ation.
a. econom ic b. pay-off c. statistical d. budgetary (a; mo derate; p. 139)
52. Managers can make rationa l decisions if ____ _____________. a. the problem i s si mp le http://vustudents.ning.com b. the goals are clear 87
c. the alternatives are li mited d. all of the above (d; challenging; p. 140)
53. Managers can make rationa l decisions if ____ __________. a. the costs of finding and evaluating alternatives is low b. the organizational culture does not encourage risk taking c. outcome s are concrete and measurable d. a and c (d; challenging; p. 140)
54. Which of the following is no t a valid assum p tion about rationality ? a. the problem is clear and unam b iguous. b. a single well-defined goal i s to be achieved. c. preferences ar e clear. d. preferences ar e constantly changing. (d; difficult; p. 140)
55. In boun ded rationality , managers co ns truct ______________ models that extract the essential features from proble ms. a. mu ltiple b. binding c. interactive d. simp lified (d; difficult; p. 140)
56. According to the textbook, because managers can t possibly analyze all infor mation on all alternatives, managers ______________, rather than ______________. a. maxi mi z e; satisfice b. maximi ze; mi nim i ze c. satisfice; mi n i mi ze d. satisfice; m ax i mi ze (d; mo derate; p. 140)
57. When managers circumvent the rationa l decision-making model and find ways to satisfice, they are following the concept of ___ ______________.
a. jurisprudence b. bounded ratio nalit y c. least-squared exemptions d. self-mo tivated decisions (b; mo derate; p. 140)
58. The ty pe of decision mak i ng in which the solution is considered good eno ugh is known as whi ch of the foll owing? a. intuition b. rationalization c. maximi zing d. satisficing (d; mo derate; p. 140) http://vustudents.ning.com 88
59. When a decision maker ch ooses an alternative under perfect rationalit y , she ch ooses a ______________ decision, whereas under bounded rationalit y she chooses a ______________ decision. a. minimi zing; satisficing b. satisficing; maximi zing
c. maximi zing; satisficing d. maximi zing; minimi zing (c; difficult; p. 140)
60. An increased co mmit ment to a previous d ecision despite evidence that it may have been wrong, is referred to as _______________ . a. economies of commitment b. escal ation of co mmit ment c. dimensional commitment d. expansion of co mmitment (b; mo derate; p. 141)
61. Managerial decisions are strongly influenced b y _ _______________ . a. the organization s culture b. internal politics c. power considerations d. all of the above (d; easy; p. 141)
62. Intuitive decision m aking is _______________. a. not util ized in organization s b. a conscious process based on accu mu lated judgm ent c. making decisions based on experience, feelings, and accu mu lated j udgment d. i mportant in s upporti ng escalation of commit ment (c; m o dera te; p. 141)
63. In studying i ntuitive decision making, research er have found that __________________. a. managers do not make dec i sions based on feelings or e motions b. managers use data from their subconsci ou s m i nd to help make their decisions c. rational thinking always w o rks better than intuitive d. accu mu lated experience does not suppor t intuiti ve decisions (b; mo derate; p. 141)
64. According to the textbook, all of t h e following are aspect s of int u ition except __________________. a. experienced- b ased decisio n s b. affect-initiated decisions c. cognitive-based decisions d. programmed decisions (d; easy; p. 141)
65. According to the textbook, _____________ are st raightforward, fam ili ar, and easily defined problems. http://vustudents.ning.com a. poorly structu red problem s 89
structured proble ms c. unique proble ms d. nonprogrammed problems (b; mo derate; p. 142)
66. Structured problems align well with which ty pe of decision making? a. programmed b. satisficing c. intuition d. gut feeling (a; mo derate; p. 142)
67. The mo st efficient way to handle structured problem s is through _ _____________ decision making. a. linear b. unique c. focused d. programmed (d; mo derate; p. 142)
68. ______________ decision making is relativel y simple and tends to rely heavil y o n previous solutions. a. Nonprogrammed b. Linear
c. Satisficing d. Programmed (d; mo derate; p. 142)
69. Programmed decision making tends to rely on which o f the following ? a. the problem solver s abilit y to thi nk on his or her feet b. the development of a clear set of alternat ive solutions c. previous solutions d. identification of the actual problem (c; easy; p. 142)
70. A procedure _______________. a. is an explicit statement detailing exactly how to deal with a decision b. is a series of interrelated sequential steps to respond to a structured problem c. is a set of guidelines that channel a mana ger s thinking in dealing with a problem d. allows a manager to use broad decision-making author ity (b; mo derate; p. 142)
71. A ______________ is an e xplicit statement that tells a manager what he or she can or cannot do. a. procedure b. policy c. rule d. solution (c; m o dera te; p. 142)
72. A polic y ____________. a. typically cont ains an ambiguous term b. is used frequentl y when a manager faces a well-structured prob lem http://vustudents.ning.com c. allows little discretion on t h e part of the manager 90
d. offers strict rules as to how a problem should be solved (a; mo derate; p. 142)
73. Which of the following factors contrasts the difference between a policy and a rul e? a. a polic y establishes para meters b. a rule establis hes parameters c. a polic y is more explicit d. a rule is mo re ambiguous (a; difficult ; p. 142)
74. According to the textbook , a ______ ________ t y pi cally contains an am biguous ter m that leaves interpretation up to the decision make r. a. system b. rule c. solution d. policy
75. A business school s statement that it stri ves for p r oductive relationships with local organizations is an examp l e of a ____ ____________. a. rule b. policy c procedure d. commit ment (b; mo derate; p. 142)
76. Poorly struct ured problems _____________. a. are easily solved b. present new or unusual circumstances c. force managers to deal with incomp lete or ambiguous inform ation d. b and c (d; mo derate; p. 143)
77. Nonprogrammed decisions are best described as ________________. a. recurring, but difficult to m ake b. very sim ilar t o problems in other areas of the organization c. requiring m o re aggressive action on the decision maker s thought processes d. unique an d nonrecurring (d; mo derate; p. 143) 78. When problems are _____ _________, managers must rely o n ______________ in order to develop unique solutio ns.
a. well structured; nonpro g rammed decision m aking b. well structured; pure intu iti on c. poorly structu r ed; non programmed decision m aking d. poorly structu r ed; programmed decision making (c; m o dera te; p. 143)
79. Which of the following terms is associated with non pr ogrammed decisions? a. unique b recurring c. routine d. repetitive (a; mo derate; p. 143)
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80. Lower-level managers ty pically confro nt what type of decision making?
a. unique b. nonrou tine c. programmed d. nonprogrammed (c; m o dera te; p. 142)
81. When lower-level managers deal with well-structured problems and they rely on
procedures and rules to solve the proble ms, this refers to a relationship between types of problems and t y pes of decisions known as ________________. a. preprogramming b. focused decision m aking c. integration d. separation (c; m o dera te; p. 143)
82. Which of the following is l i kely to make the mo st programmed decisions? a. the CEO of PepsiCo. b. the vice president of General Motors Cadillac Division. c. the head of the Minute Maid Division at Coca-Cola. d. the manager of the local McDonald s. (d; easy; p. 142)
83. Which of the following is a n accurate st a t e ment conce rning the im p act of programmed decisions on organizations? a. They maxi mi ze the need for managers to exercise disc retion. b. They decrease the need for high-cost m a nagerial talent. c. They increase the amount of judgm ent needed by managers. d. They decreas e organizational efficiency . (b; mo derate; p. 142)
84. ______________ is a situ a tion i n wh ich a m anager can make accurate d ecision s
because the outcome of every alternative is known. a. Certainty b. Risk c. Uncertainty d. Maximax e. Maximi n (a; easy; p . 144)
85. If an indivi dual knows the price of three similar cars at different dealerships, he or she is operating u nder what t y pe of decision-making condi tion? a. risk b. uncertainty c. certainty d. factual (c; easy; p. 144)
86. Nonprogrammed decisions are typically m ade under a condition of ________________. a. certainty b. low levels of risk http://vustudents.ning.com c. uncertainty 92
d. reliability (c; m o dera te; p. 145)
87. Organizational efficiency is improved b y the use of _________________. a. programmed decisions b. nonprogrammed decisions c. less planning d. lower expectations and l o wer demands by top manager (a; mo derate; p. 142)
88. A retail clothing store m anager who estimates how much to order f o r the current spring season based on last spri ng s outcomes is operating under what kind of decision -making condition? a. seasonal b. risk c. uncertainty d. certainty (b; difficult; p. 142)
89. ______________ is a situation in whi ch a decisio n maker has neither certainty nor reasonable probabilit y esti mates availab l e. a. Certainty b. Risk c. Uncertainty d. Maximax (c; easy; p. 145)
90. A person at a horse racetr a ck who bets all of his/her money on the odds-based long shot to win (rather than place or show ) is making what kind of choice? a. maxi max b. maximi n c. minimax d. minimi n (a; mo derate; p. 146)
91. Which of the following best describes maximizing the m i ni mu m possible pay off ? a. maxi max b. maximi n c. minimax d. minimi n (b; mo derate; p. 146)
92. An individual making a maximin ty pe of choice has what type of psy chological orientation co ncerning uncertain decision m aking? a. optim ist b. realist c. pessi mi st d. satisficer (c; m o dera te; p. 146)
93. Which of the following would best describe the ps y chological orientation of an indivi dual m a king a m aximax type of choice? http://vustudents.ning.com a. optimist 93
b. realist c. pessi mi st d. satisficer (a; mo derate; p. 146)
94. Optimi stic managers could be expected to utilize their maximax orientation when they _______________. a. maximi ze the maximu m payoff b. maximi ze the mi nim u m payoff c. mini mi ze the maximu m r egret d. mini mi ze the mini mu m reg r et (a; easy; p. 146)
95. According to the textbook , a manager who desires to mi nim i ze his or her maximi m regret will opt for a ______________ choice. a. maxi max b. maximi n c. minimax
d. minimi n (c; m o dera te; p. 146)
96. All of the f ollowing are mentioned in the textbook as decision-making sty l es except _________________> a. directive b. egotistical c. analy tic d. conceptual (b; mo derate; p. 147)
SCENARIOS AND QUESTIONS For each of the following c hoose the answer that most completely a n swers the question.
THE DECISION-M AKI NG PROCESS
Decisions, Decisions (Scenario)
Sondra needed help. Her i n surance comp any s rapid growth was necessitating making some changes, but what changes ? Should the y add to the existing information system ? Buy a new sy stem ? She was given the responsibili ty of analy zing t h e com p any s present information sy stem and decide what the co mp any should d o that would give them plenty of room . She was confused and needed help in m aking the correct decision.
97. According to the decision-making process, th e first step Sondra should take would be to _____________. a. analyze alternative solutions b. identify decision criteria c. evaluate her decision s effectiveness d. identif y the problem (d; mo derate; p. 134) http://vustudents.ning.com 94
98. According to the decision- making process, the second step Sondra should take would be to ____________. a. analyze alternative solutions b. identify decision criteria c. evaluate her decision s effectiveness d. allocate weights to the criteria (b; m o derate; p. 136)
99. The very last step Sondra should take, according to t h e decision-making process, would be to __________. a. analyze alternative solutions b. select alternat ives
c. i mplement the alternative d. evaluate the decision s effectiveness (d; easy; p. 138)
100. When Sondra is conveyi ng her decision to those affected and getting their co mmitmen t to it, she is pe rforming which step in the decision- mak i ng process? a. analyzing alternative solutions b. selecting alter n atives c. i mplementing the alternative d. identif y i ng the problem (c; m o dera te; p. 138)
101. Allocating weights to the criteria is the step in the decision- maki ng process that occurs between identify ing t h e decision criteria and ___ ___________. a. developing the alternatives b. selecting alter n atives c. i mplementing the alternative d. identif y i ng the problem (a; difficult; p. 138)
Colleen is a student, and h er older brother has lo aned her an old car. The car is in need of several repairs before she will feel co mfortable driving it.
102. Colleen needs a vehicle, but she has to decide if the vehicle is worth repairing. She is
facing a(n) _____________ , a discrepancy between an existing an d a desired state of affairs. a. alternative b. weighted prob lem set c. problem d. certainty avoi dance situation (c; m o dera te; p. 134)
103. In talking wit h an autom o tive repair person, Colleen needs to prio rit i ze the repairs. Her first concern is safety of the vehicle. This step in the de cision- making process is c alled __________________. a. weighting the decision criteria b. analysis of alternatives c. identification of decision criteria d. selection of an alternative http://vustudents.ning.com (c; m o dera te; p. 136) 95
104. Colleen decides to have all of the problems fixed on the car. She assume s that th e repair person has found all the problems a nd that there will be no problem correcting the im perfections within a specified budge t. This i s an example of a __________ decision. a. parochial
b. irrational c. ethical d. rational (d; challenging; p. 139)
105. Colleen s brot her has a different view of the repairs. He assu me s that the repair person is using the best inform ation available, but there ma y be other unexpected repairs tha t might surface and that a higher budget mi ght be mo re reas onable. He is using ______________. a. rational decision m aking b. risk avoidance c. boun ded ratio nalit y d. Stage 4 decision m aking (c; challenging; p. 140)
106. Colleen s brot her feels the car is worth repairing be cause he has owned several cars made by the sa me manufacturer as this car, and he has driven this car for sever al y ears. He is using _________ to decide the car has value despite of its need of repair. a. intuitive decision m aking b. selective coor dination of thought processes c. sunk costs d. return on in vestment (a; challeng ing; p. 141)
THE MANAGER AS A DECISION MAKE R
The First Job (Scenario)
Upon graduati on, you search for a job with the university s j ob placement center. Although you have stud ied and prepa r ed to work i n an advertising agency , th e first job that y ou are offered is a supervisor in a manufacturing com p any working the afternoon shift from 3:00 P.M. until 11: 00 P.M.
107. Although the job in the ma nufacturing firm was good enough, y ou acted in a __________ manner by accepting a job. a. self-righteous b. boundedl y rat i onal c. satisfactory d. liberal (b; mo derate; p. 140)
108. If y ou had made a larger sear ch using the In ternet and ot her employ ment search processes, you mi ght have been able to find mo re employ ment opport unities. This would have been a mo re _ ________ decision- making process. a. nonpr ogrammable http://vustudents.ning.com b. uncertain 96
c. risky d. perfectly rational (d; mo derate; p. 139)
109. Under bounded rationality , y ou would be expected to search for a job by ________________. a. lookin g at all the opp ortunities that can be analy zed in the time available b. lookin g at all the opp ortunities available c. looking outs i de the box in y our search d. analyzing all the opportunities until y ou find the perfe ct job (a; challeng ing; p. 140)
110. If y ou use a shortened process of search ing for a j ob, it is likely you ___________ rather than maxi mi zed in your decision process. a. minimi zed b. rationalized c. satisficed d. agreed (c; challenging; p. 140)
111. During y our job search, you depend on __________ decision making by m aking y our decision on accumu lated judgm ent and experience. a. experiential b. legal
c. intuitive d. form idable (c; challenging; p. 141)
THE MANAGER AS DECISION MAKER
Is the Picture Clear? (Scena r io)
Sharon was the regional manager of a large cable television co mp any . She faced many problems and decisions daily, such as how to pr ice each market, who to hire, what kind of technology s h e should purchase, and how she s hould handle increasing customer comp laints. She needed some help sorting these issues out.
112. Unfortunately, Sharon also faces issues containing information that is ambiguous or incom p lete, such as what kind of technology to purchase. These are k nown as ______________ problems. a. poorly structu r ed b. variable c. random d. hit-and-mi ss (a; mo derate; p. 142)
113. When a customer calls and requests a refund for a partial month s usage of cable, the fact that such situations are routine and mo st likely have a stan dard response would make the response a ____ __________ decision.
a. standard b. routine c. polic y d. programmed http://vustudents.ning.com (d; mo derate; p. 142) 97
114. Sometim e s Sharon follow s a _______ _______, a series of interrelated sequential steps for respondin g to a structured problem . a. rule b. policy c. procedure d. suggestion (c; m o dera te; p. 142)
115. Sometim e s Sharon instructs her loca l managers to follow ______________ when confronted with problem situations These est ablish para met er s for the ma nager making the decision rather than specifically stating what should or should not be done. a. rules b. procedures c. policies d. orders
(c; m o dera te; p. 142) Decision-Making Conditions (Scenario)
Sandy Jo is the manager for TrucksRUs, a medium-sized hauling service located in the Southeast. She is responsible for scheduling trucks, initiating ne w routes, and staffing both existing and new routes. She is currently struggli ng with existing inform ation about the profitability of existing and future truck routes.
116. Joe, Sandy Jo s best driver, tells her that he believes he can estima te that there is a 75 percent probability that they can get the business of P o rk Brothers, Inc. if they initiate a truck route t h roug h rural North Carolina. Joe is operating u nd er a condit i on of ______________. a. certainty b. risk c. uncertainty d. maximax (b; difficult; p. 144)
117. Sandy Jo can make accurate decisions if she is willing to pa y $5,000 for research about the profitability of various truck routes. If she pays for the research, she believ es that she is operating under a condition of ____________. a. certainty b. risk c. uncertainty d. maximax
(a; difficult ; p. 144)
118. Sandy Jo knows that she is operating in an uncertain environm ent. She is basically an optimist, and we would, th erefore, expect her to follow a ______________ strategy . a. certainty b. risk c. uncertainty d. maximax (d; mo derate; p. 146)
119. Sandy Jo knows that she is operating in an uncertain environment. She is basically a pessimi st, and we would, t h erefore, exp ect her to follow a ______________ strategy . a. certainty http://vustudents.ning.com b. risk 98
c. minimax d. maximi n (d; mo derate; p. 146)
120. Sandy Jo wis h es to mi nimize her regret and will probably opt for a ______________ strategy. a. certainty
b. risk c. minimax d. maximax (c; m o dera te; p. 146)
Managing Your Career (Scenario)
Michelle has a new job and is learning to perform the tasks as signed to her. Different situations demand different decision-making process es.
121. Michelle finds a situation that instructs her in specific, interrelated, sequential steps to respond to a problem. This is referred to as a _____ ________. a. rule b. policy c. broad guideli n e d. procedure (d; challenging.; p. 142)
122. Michelle finds a comp any directive that specifically restricts her from taking certain actions. This is a _____________. a. rule b. policy c. broad guideli n e d. procedure
123. As she learn s the general guidelines of t h e job, Miche lle is given more decision-making authority . The guidelines establish paramete r s for decision making and are referred as a _____________. a. rule b. policy c. broad guideli n e d. procedure (b; challenging; p. 142)
124. Michelle eventually finds a problem that has no cut-and-dry solution. The pro b lem is unique and will never occur again. This problem is referred to as _____________. a. flexible b. programmed c. adaptable d. nonprogrammed (d; mo derate; p. 143)
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MULTIPLE - CHOICE QUESTIONS
For each of the following, choose the answer that most completely a n swers the question.
What Is Planning?
28. Planning in vo lves definin g the organiz ati on s goals, establishing an overall strategy for achieving those goals, and develo ping a com p rehensive set of plans _____________. a. as to which shift will perform what work functions b. to determ ine which manager will be over which depart ment c. to integrate and coord i nate organization al work d. to establish th e qualit y and quantit y of work to be accom plished (c; difficult; P. 158)
29. Inform al plan ning is _________. a. performed at the lowest organizational level b. general and lacks continuit y c. developed in inform al meetings at a resort d. specific and is developed b y the m iddle managers for their department (b; easy; p. 158) 30. In formal planning , __ _______. a. specific goals covering a p eriod of y ears are defined b. specific goals are developed and n o t written c. general goals are deve loped and not written d. general goals covering an un specifi ed period of y ears are defined (a; easy; p. 158)
31. Formal planning in volves which of the fo llowing aspects? a. developing g eneral objectives b. planning for up to one year c. writing objectives d. distributing the plan to all managerial e mploy ees (c; moderate; p. 158)
32. In inform al planning, __________ sharing of goals with others in th e organization. a. everyt hi ng may be written down, but ther e is little or no b. everyt hi ng is written down, and there is c. nothing is wri tten down, and there is littl e or no d. nothin g is wri tten down, t herefore managem ent does a lot of (c; difficult; p. 158)
Why Do Managers Plan?
33. Planning give s direction, reduces the i mpact of change, mi ni mi ze s waste and redundancy , and __________. a. establishes the workloads fo r each of the departments b. sets the basis used for pro motion of ind i viduals within the organiz ation c. elim inates departm ents that are found to not be needed within th e pl an d. sets the standards used in controlling
http://vustudents.ning.com (d; moderate; p. 159)
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34. Planning can t elim inate change. Manage rs plan in or der to ___________. a. be prepared for when changes in management at the top occurs b. anticipate cha nges and develop the mo st -effective re s ponse to changes c. decide what needs to be done when a change in environm ents happen d. have the appropriate materi als availa ble when the demand for them co me s about (b; moderate; p. 159)
35. The effect of planning on managers is that it forces the m to do which of the following? a. react to change b. consider the imp act of cha nge c. respond ind i scriminately d. develop b u reaucratic response models (b; moderate; p. 159)
36. Generally speaking, which of the following factors least constrains high performance in planning organizations? a. quality of planning b. extent of plan ning
c. implementation of plans d. environm ental factors (a; difficult; p. 159)
37. Studies of per f ormance in organizations that plan have reached ___________. a. so mewhat negative conclusions regarding the benefit s of plannin g b. generally mi xed conclusions regarding the benefits of planning c. generally neg ative conclusions regard ing the benefits of planni ng d. generally positive conclusions regarding the benefits of planning (d; difficult; p. 159)
38. The quality of the planning process and the appropriate implementa tion of the pla n s probably __ _________. a. don t co ntrib u te to hi gh performance nearly as mu ch as the extent of planni ng b. contribute mo re to high performance than does the ext ent of planni ng c. contribute less to high performance than does the extent of planning d. should be studied mo re to factually dete rmine which contributes th e mo st (b; difficult; p. 159)
39. Governmental regulations, powerful labo r unio n s, and other critical environmental forces constrain m anagers options and __________. a. reduce the impact of planni ng o n an organization s performance b. increase the i mp act of planning on an organization s performance
c. neutralize the im pact of planning on an o r ganization s performance d. don t affect the im pact of planning on a n organizatio n s perform ance (a; moderate; p. 159)
40. In studie s in which formal planning did no t lead t o hig h er performance, ____________. a. the external environm ent often was the c u lprit b. management execution of t h e plans was mo st often the reason for failure http://vustudents.ning.com 101
c. e mploy ee implementation of the plans was the primary reason for failure
d. lack of communication was mo st often the reason for failure (a; moderate; p. 159)
How Do Managers Plan?
41. Planning is of ten called the primary managem ent function because it ____________. a offers some b asis for future decision making b. creates the vision for the organizational memb ers to work toward c. establishes the basis for all the other functions d. sets the tone for the organizational cultur e (c; difficult; p. 160)
42. Planning in vo lves two important elements: ___ ________.
a. goals and decisions b. goals and plan s c. plans and decisions d. goals and actions (b; moderate; p. 160)
43. Official statements of wh at an organization say s and what it wants its various stakeholders to believe are referred to as ___________. a. real goals b. stated goals c. co mmitted goals d. comp rehensive goals (b; moderate; p. 161)
44. Which of the following is t r ue concerning an organiza tion s stated objectives? a. They issue identical objectives to all constituents. b. Organizations typically have internal and external sets of objectives. c. They may issue different objectives to stockholders, customer s, employ ees, and the public. d. Stated objectives are usuall y in li ne with short-term act ions. (c; moderate; p. 161)
45. What should a person do to understand what the real objectives of the organization are?
a. observe organizational memb er actions b. attend a stockholders annual meeting c. read their annual report d. watch television news reports (a; moderate; p. 162)
46. When we categorize plans as being directional versus specific, we are categorizing them by ____________. a. breadth b. specificity a. frequency of use d. depth (b; easy; p. 163) http://vustudents.ning.com 102
47. When we categorize plans as being single use versus standing, we categorize t h e m by ____________ . a. breadth b. specificity c. frequency of use d. time frame (c; easy; p. 163)
48. A state legislative plan that calls for a 2.45 percent increase in tobacco sale s tax for the next 2 y ears would be considered what type of plan ? a. strategic b. operational c. specific d. directional (c; moderate; p. 163)
49. Directional plans do which of the following? a. have clearly defined objectives b. identif y gener al guidelines c. meet the needs of a unique situation d. last for 3 5 years (b; moderate; p. 163)
50. Which of the following is t r ue concerning standing pl ans? a. They provide guidance for activities repe at edly performed in the or ganization. b. They provide guidance for 1 3 y ears. c. They specify general guidelines. d. They are specifically designed to m eet t h e needs of a unique situation. (a; moderate; p. 163)
51. A city s pol icy concerning skateboard ing on downtown sidewalks that provides guidance for police action would be con sidered what type of plan ?
a. standing b. contingency c. directional d. single use (a; difficult; p. 163)
52. The mo st common w ay s to describe o r ganizational plans are b y their breadth, time fram e, specificity and __ _________. a. quantifiability b. flexibilit y c. frequency of use d. attainability (c; easy; p. 162)
53. What happens to traditional goals as they make their way down fr om top managem en t to lower levels? a. they lose clarity and unity b. they unite the workforce c. lower-level managers mu st continually revise and correct the m. d. they pur posely remain vague and no nspecific. (a; mo derate; P. 164)
http://vustudents.ning.com 54. Goals are objectives, __________.
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a. and we use the two ter ms i n terchangeably b. but go als are long-term and objectives are short-term c. and goals are used by top management and objective s are used by first-level management d. but goals are used in reference to profits, and objectives are us ed in reference to productio n out put (a; easy; p. 160)
55. Plans are documents that outline how goals are going to be met and ___________. a. define which depart ment has what respo n sibilities needed to accomplish the goals b. tell what mat erials and process es ar e necessary to fulfill the goals c. identif y how mu ch capital is required to co mp lete the goals d. describe resource allocations, schedules, and other necess ary actions to acco mp lish the goals (d; difficult; p. 160)
56. Emphasis on one goal __ _________. a. assures that th e one goal will be accomp lished even above the established level b. ignores other goals that m u st also be re ached if long-t erm success is to achieved c. make the goal easier to be accomp lished by all the organizational memb ers d. denies the organizational memb ers the opport unit y t o grow and develop
(b; difficult; p. 160)
57. Using a single objective ca n result in unethical practices bec ause managers ____________ . a. want to satisfy the stockholders of the or ganization b. will manipulate the outcomes reported to assure that the one objective is achieved c. will ignore other im portant parts of thei r jobs in order to look good on that one measure d. will use overti me to acco mplish that single objective without reporting it (c; difficult; p. 160)
58. Stated goals are official state ments of what an organization say s its goals are and ___________. a. what it wants its various stakeholders to believe its goals are b. are the goals that the organization actively works to achieve c. what it wants its stockholders to believe its goals are d. what it believes its goals are (a; moderate; p. 161)
59. The mo st popular way s to describe organizational plans are by t h eir breadth, time fram e, ____________. a. depth, and urgency b. frequency, and urgency c. specificity, and frequenc y d. depth, and specificity
(c; difficult; p. 162)
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60. Strategic plans are plans that apply to the entire organization, establish the organization s overall goals, and ___ _________.
a. guide the or ganization toward maxi mi zing organi zational profits f o r the stockholders b. attemp t to sat isfy all gover n ment regulations while maximi zing prof its c. satisfy the or ganization s s t akeholders d. seek to position the organization in terms of its environment (d; difficult; p. 162)
61. Operational plans specify t h e details of ____ _______. a. what department performs which functional process to accomp lish t h e goals b. what materials are required for which product being pr oduced c. when each product model is to be produced d. how the overall goals are to be achieved (d; difficult; p. 162)
62. Strategic plans tend to cover a longer peri od of tim e than operational goals and also _____________. a. cover a mo re narrow view of the organiz ation
b. cover the financial projections of the pl anning period c. cover a broader view of the organization d. include an estim ate of the profits that the stockholder can anticipate as dividends (c; moderate; p. 162)
63. Specific plans are clearly d efined and ____________. a. allow managers to their interpretation for flexibilit y b. leave no room for interpretation c. give the man agers authority to interpret the plans for t h eir area of responsibility d. keep the stakeholders inform of the organization s objectives (b; moderate; p. 163)
64. Directional plans are ___________. a. flexible plans that set out general guidelines b. stringent plans that establis h specific directions for manager to follow c. formal plans that provide the dir ections of how to assem bl e the product d. general plans that allow the workers to change the schedule of production (a; easy; p. 163)
65. Standing plan s are ongoing plans that provide _ ___________. a. general directions of how to acco mp lish an identifiable task b. stakeholders identifiable goals that the organization will always strive to achieve c. the stockholders identifiable goals that the organization will always strive to achieve d. guidance for activities performed repeatedly
66. Goals are often called ___________. a. the basis for all the other functions b. managements do or die objectives c. a lot of ot her names by var i ous organizations d. the foun dation of plan ning (d; moderate; p. 160)
67. __________ can evaluate whethe r an organization is successful. a. A goal is the only measure that b. No single measure http://vustudents.ning.com c. Plans are also a mea sure that 105
d. Stakeholders are the onl y g r oups that (b; moderate; p. 160)
68. The conflict in stated goals exists because organizations respond to a variety of _______________. a. stakeholders b. external environm ents c. governm ental regulations
d. stockholders (a; difficult; p. 161)
69. Strategic plans cover a broader view of th e organization and inclu d e the form ulation of goals, whereas operational plans define way s to _____________. a. maximi ze the organization s profits b. achieve the goals c. mini mi ze the num ber of employ ees that have to be laid off in hard times d. provide t h e most efficient methods of production (b; moderate; p. 162)
70. The flexibility inherent in directi onal pl ans mu st be weighed against the _____________. a. gain of a shorter planning period b y specific plans b. gain of a lo nger planning pr ovided by specific plans c. loss of clarity provided by specific plans d. loss of a shorter planning period b y specific plans (c; easy; p. 163)
71. __________ i s a one-time plan specifically designed t o me et the needs of a unique situation. a. Multipurpose plan b. Strategic plan c. Operational plan
d. Single-use pl an (d; easy; p. 163)
72.
____________ planning do mi nates managers plann i ng efforts at lower levels of the
organization. a. Strategic b. Tactical c. Operational d. Functional (c; easy; p. 162)
Establishing Goals and Developing Plans
73. With traditional goal setting, the goals are set at the t op level of managem ent an d _____________. a. then they bec o me the responsibility of fi rst-line managem ent to achieve the goals b. then they are broken down into subgoals for each level of the organizatio c. all the efforts to achieve the goals are directed by t op management to ensure that they are achie ved d. then they are delegated to th e next lower level to be achieved http://vustudents.ning.com (b; difficult; p. 164) 106
74. With traditional goal setting, em ploy ees wo rk efforts at their resp ective levels and work areas are geared to meet the goals ___________. a. so that the top m anage men t will be retained in their position b. so that their immedi ate supervis or will be retained in their position c. that have been assigned in th eir specific areas of responsibility d. within the shortest am ount of time possible (c; moderate; p. 164)
75. Management by objectives is a manage ment system in which the first steps are s et ting specific perfo rmance goals that are _____________. a. established that can be easi ly acco mp lished b. jointly determined by employ ees and their manager s c. determined by top m anage ment with clar ity so that the objective are clear to eve n the mo st inco mp etent e mpl oyee d. developed in such a manner that the emp l oyees are self-directed and do not need supervision (b; moderate; p. 165)
76. Studies of actual MBO program s confirm that MBO __________ employ ee performance and organizational performance. a. depends on b. is related to c. decrea ses
d. increases (d; moderate; p. 165)
77. According to the textboo k, one of the p o tential proble ms of MBO programs is that ____________ . a. there may be an overe mphasis on the em ploy ee acco mp lishing their goals without regards to others in the work unit b. they m ay not be as effective in times of d y nam i c environm ental change c. employ ees do not take goal setting seriously enough
d. all of the above (d; moderate; p. 165)
78. In the MBO sy stem , ___________. a. objectives are deter mined by manage men t b. goals are only reviewed at the tim e of com p letion c. goals are used as controls d. progress is periodically reviewed (d; mo derate; P. 165)
79. A well-design ed goal sho ul d be __ __________. a. short and very specific about expected o u tcomes b. written in terms of outcomes rather than actions c. identifiable to even the first-line supervisors d. specific and within a manageable time frame (b; moderate; p. 166)
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80. A well-design ed goal should be me asurable, have a specified ti me f r a me, and be ____________ .
a. written down b. nearly unattainable, so that even if the unit or em ploy ee mi ss es their goal, performance i s still very hi gh c. co mmunicated to an yone who needs to know d. both a and c (d; moderate; p. 166)
81. When organizational me mbers are mo r e actively involved in planning, the y see that the plans ___ _________. a. stated to stakeholders are the real plans that the organization desires to achieve b. are not as important as management ma kes them out to be c. are how the com p any is going to be judged by the stoc kholders d. are mo re than just something written down on paper (d; moderate; p. 169)
82. When the hier archy of organizational goals is clearly defined, it fo rms an integrated network of g o als, or __ __________.
a. hierarchical-link chain b. means- ends c h ain c. weake st-link chain d. level-level chain (b; easy; p. 164)
83. Three contingency factors t h at affect planning are level in the organization, degr ee of environm ental uncertainty , and ____________. a. length of fu tu re co mmitments b. quantit y of fu ture commitments c. frequency of future commitm ents d. enforceability of future commit ments (a; moderate; p. 168)
84. The commitment concept means that plans should extend far enou gh to meet those co mmitments ___ _______. a. as quickly as possible b. while the resources are available c. with the stakeholders and make it appear that the orga nization is really comm itted d. made when the plans were developed (d; moderate; p. 168)
85. Three contingency factors cited by your te xtbook that affect planning are level in the organization, length of fu tu re co mmitments, and _ ___________. a. risk aversion of management
b. employ ee satisfaction c. level of productivit y d. degree of environm ental uncertainty (d; moderate; p. 168)
86. How an organization plans can be best understood by lookin g at _ ___________. a. the goals set out by the or ganization s pl anners b. who does the planning c. the flexibilit y of the organi zation s plans http://vustudents.ning.com d. none of t h e above 108
(a; easy; p. 169)
87. In the traditional approa ch to planning, plann i ng was done entirely by t op-level managers who were often assisted by ____________. a. business level managers b. functional lev el managers c. a mi xture of managers fro m the line, fu nctional, and business level d. a group of planning specialists (d; easy; p. 169)
88. Goals provide the direction for all m ana gem ent decisions and actio ns and form the _____________. a. profit basis that the organizations will accomp lish for stockholders b. desired outcomes that the organizational me mb ers will achieve c. basis for the sharing of profits with the em ploy ees at t h e end d. criterion against which actual acco mp lis hments are measured (d; difficult; p. 164)
CONTEMP ORARY ISSUES IN PLA NNI NG
89. According to your text book, frequently ci ted criticisms of form al planning include, __ __________. a. b. plan s can t be developed for a d y nam i c environm ent formal planning is to o time consum ing, given the d y amism in mo d ern
business environments c. formal planning creates extra, often redundant levels of hierarchy within
the organization d. formal planning works well only for larg e, diversified comp anies
90. It is ____ ______ form al planning efforts when the env i ronment is highl y uncertain. a. not as im portant to contin u rarely verbal ized e b. i mportant to s witch to directional planning and cease c. necess ary to ceas e
d. important to continue (d; difficult; p. 172)
91. A wireless networking tech nology called WiFi that links together information devices is __________. a. threatening to revolutio nize all kinds of industries b. making organi zational planning m u ch easier c. co mp licating the planning process, but will be improv ing communications d. an integral component of planning fo r th e Fortune 500 com p anies (a; moderate; p. 171)
92. According to your text book, in an u n certa in environm ent, managers want to develop _________ plans. a. general and flexible b. specific but flexible http://vustudents.ning.com c. formal 109
d. contingency (b; moderate; p. 172)
93. As organizational enviro nments ha ve beco me mo re uncertain, ____________. a. organizations are having to make longer term plans
b. organizations have to resist the uncerta inties to keep the plans moving toward the objectives c. organizations have to request the government to pass mo r e legislation restricting the am ount of uncertaint y d. the definition of long term has changed (d; moderate; p. 171)
94. In an uncertain enviro nmen t, managers want to develo p plans that ar e ____________ . a. flexible but manageable b. specific and long rang ing c. directional but flexible d. specific but flexible (d; moderate; p. 171)
95. The organizational hierarchy becomes flattened as the responsibilit y for establishing g o als and developing plans i s ____ ________. a. moved to the middle organizational levels b. shoved the lowest organizational levels c. shifted to a fo rmal planning department d. mo re the work of the fi nancial departme nt (b; moderate; p. 172)
96. According to your text book, in order to manage effectively in dy na mic environment,
managers must recognize that plannin g i s ____ _________. a. an ongoing pr ocess b. not renewable from one planning period to the next c. best left to the form al planning department d. best done at th e beginni ng of a new year (a; easy; p. 172)
SCENARIO QUESTIONS For each of the following, choose the answer that most completely a n swers the question.
WHAT IS PLANNING?
It s Acade mi c (Scenario) You are the Acade mic D ean for a s mall liberal arts college. The universit y president has asked you t o develop a plan for the college. He wants a plan covering the next 5 y ears, and he wants it to be as specific as possible, y e t not overl y constrain flexibi lit y .
97. Your plan will have specific objectives covering a period of 5 y ears along with specific action plans for achieving of these objectives. Your plan could best be described as ___________. a. contractual b. formal http://vustudents.ning.com c. defined 110
d. standard (b; moderate; p. 158)
98. The President has expressed concern regard ing the impact of planning on t h e abilit y of the organizational to respo nd to emerging changes in t h e higher ed ucation environment, such as distance learning and corporate universities. You should t ell the President that planning has what kind of effect? a. forces managers to look at the present b. forces managers to anticipate change c. managers can t really consider the im pa c t of change d. planning increases uncertai n ty (b; easy; p. 158)
99. Due to the m a ny colleges and universi ties in your area, the President has expressed concern about sharing too m a ny details regarding specific goals and action programs beyond top admi nistration and the board of regents. According to your textbook, you should suggest that ______________. a. goals must be shared with orga nization me mbers to be effective b. because of the inten s e competition in your area, you agree with his po sition c. strategic goals and plans should never leave the boardroom under any circum stances loose lips sink ships d. inform ation could be leaked through the press and the Intern et over time, so that em ployees will becom e aware of plans
(a; easy; p. 158)
HOW DO MANAGERS PLAN?
E-Biz Drea ms (Scenario)
Robert Downs has just co mp leted a Master of Science degr ee in Computer Science at Major State Universit y. He now wants to begin a new In tern et business selling his services as a Web site make r for c o mp anies in his ho me cit y, St. Louis. He esti mates that within 1 yea r, if his business idea is a success, that, at a mi ni mu m, he will be emp l oying 10 progra mme rs a nd 2 analysts.
100. To make his business successful, he will first have to develop which ty pe of plans? a. operational pl ans b. specific plans c. directional plans d. strategic plans (d; moderate; p. 162)
101. To clarify how the overall goals are to be achieved, he will have to develop which t y pe of plans? a. operational pl ans b. specific plans c. directional plans d. strategic plans
102. To ensure that the organization s obj ectiv es are clearly defined and do no t leave room for interpretation, he will have to develop which t y pe of plans? http://vustudents.ning.com a. operational pl ans 111
b. specific plans c. directional plans d. strategic plans (b; moderate; p. 163)
103. To provide the programmers and analyst general guidelines about the efficiencies th at are desired, he will have to develop which t y pe of plans? a. operational pl ans b. specific plans c. directional plans d. strategic plans (c; moderate; p. 163)
A Business Pl an (Scenario)
I magine that you are the owner of a small co mp any that sells ty pe writers, business equipment, and com puter hardware. You em ploy about 40 people. You k now th at the organ i zation needs to mo v e in a different direction, and y ou want to set so me long-term goals for the co mp any . You want to write so mething that will cover the next 3 years only, knowin g that business needs change some what fr equent ly . Your goal is to write so mething that provides direction, but does not contain extrem ely well-defined, potentiall y r estrictive objectives.
104. The fact that your pl an covers three years suggests your pl an is mo st consistent with what type of plan? a. specific b. long term c. operational d. strategic (d; moderate; p. 163)
105. Your plan will cover the entire organization. This char acteristic is mo st consistent with what type of plan? a. specific b. long term c. standard d. strategic (d; moderate; p. 163)
Planning Factors (Scenario)
As vice president of a local m a nufacturer, you are interested in developing a new organizational plan. However, you are unsure about several factors. You are not sure who you should assign to the varying planning tasks. At the sam e ti me , several other issues that could deeply affect your business are pendi ng, including rising interest rates and the potential formation of a ne w employee union. You must also consider your firm s contracts with large vendor s that extend 5 years into the future. http://vustudents.ning.com 112
106. For the m o st part, you should assign the operational planning activiti es to ___________. a. line staff b. top managers c. lower-level managers d. middle m anagers (c; moderate; pp. 162-163)
107. Which plans should you and other top management memb ers be working on ? a. operational
b. specific c. overall d. strategic (d; moderate; pp. 162-163)
108. Uncertainty regarding th e effects of unionization and rising interest rates on your business suggests that the plans need to be ___________. a. specific b. directional c. focused d. objective (b; difficult; p. 163)
109. The issues that ma y deeply im pact your business such as ri sing interest rates, the potential for mation of a new employ ee union and the firm s contracts with large vendors, are exam ples of ___________ factors that affect planning. a. environm ental b. noncontr o llab l e c. outside d. contingency (d; moderate; p. 168)
Retail Planning (Scenario)
Mr. Tyler Nall is P resident and CEO of what should be consid ered a major retailing chain tha t is about to begin operations.
During the last couple of months he has been working to lay out directions for the managers of the stores, which will exist in ma jor c ities ac ross the United States . Their stores will sell ho me furnishings that are considered moderately pri c ed for the aver age- inco me buy er. Mr . Nall and his vice pr esidents have decided that each store should ha ve sales equal to or gr eater than $100 per squar e foot, per day. To attract an ade quate numb er of custo mer s , the store should be:
located in an out-parcel of a major shopping mall; the mall mu st attract an ave r age of at least 10,000 customers daily ; all stores are to be well-maintained bot h in side and out ; display s arranged in room settings; well-lit, throughout the store; open from 9 A.M. to 9 P. M. Monday Saturday, and 1 P.M. t o 5 P . M. Sun d ay ; http://vustudents.ning.com 113
sales per sonnel should be cl ean-cut, frie ndly , and wear appropriate business attire.
110. The prim ary t ask that Mr. Nall and the vice presidents have been perform ing during the last couple of months is known as ____________. a. layi ng out ideas b. making plans c. establishing networks d. designing th e stores
(b; easy; p. 160)
111. The statement that each store should ha ve sales equal to or greater than $100 per square, foot per da y is an example of ____ _______. a. a specific plan b. a directional plan c. a goal d. management b y o b jectives (c; moderate; p. 160)
112. The statement that all stores should be w ell-m aintained bot h inside and out is an example of a _________ . a. directional pl an b. specific plan c. stated goal d. real goal (a; hard; p. 163)
113. Because the environm ental conditions in which home fu rnishing stores operate are generally stable, the sta t e ments inten d ed to attract customers would mo st likel y be cons idered to be _ __________. a. operational pl ans b specific plans c. directional plans d. strategic plans
114. Nall s goal for each store of $100 per square foot, per da y has several of the characteristics of a well-designed goal. First, it is written in terms of outcome s and not actions. Second, th is goal i s measurable and quant ifiable. Accordi ng t o your te xtbook, what else can Nall do to im prove the desi gn of t h is go al? a. specify a time frame for ac hieving this goal b. ensure the goal is attainable c. co mmunicate this goal to every sin g le employ ee of the organization d. A and B onl y (a; difficult; p. 166)
ESTABL IS HIN G GOA LS AND D E VELOPIN G PLANS
A-Z Planning (Scenario)
Organizations ABC and XYZ are both in the sa me industry and vie for the sa me set of custome rs in the ma rket place. Within ABC, the plans are made at the top le vel of manage ment each year and then are formulat ed for and announced t o each of the mi d -level and fir s t- level managers . At XYZ, the plans ar e made at the top and then those ma nagers meet with their subor dinates at the next level an d mu tuall y agreed-t o goals are establis hed with the m. T h e mi d-level mana gers then meet wit h their first-lev el ma nagers and mu tually agr e ed-t o goals ar e established with the m. The firs t-level managers th en meet with each of their employ ees and mu tually agre ed-t o goals are established with them.
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115. Because these plans only c over a 1- y ear period, they are considered to be which type of plans? a. operational pl ans b. specific plans c. directional plans d. strategic plans (a; moderate; p. 162)
116. The plannin g approach used at the ABC organization is which of th e following? a. Management by Objectives b. directional pl anning c. specific planning d. traditional planning (d; moderate; p. 164)
117. The plannin g approach used at the XYZ organization is which of th e following?
a. directional pl anning b. Management by Objectives c. traditional planning d. specific planning (b; moderate; p. 165)
118. Which organization is mo st likel y to have the highest employ ee performance and organizational productivity ? a. Neither, as they are both in the sam e industry and facing the same environm ents. b. Organization ABC, becaus e the plans are for mulated by manage ment for each level of the or ganization. c. Organization XYZ, becaus e the employ ees participated in the planning process and know spe cifically what their objectiv es are. d. Neither, because the hierarchy of organi zational goals is clearly defined at each level. (c; moderate; p. 165) Page 165
119. Assumi ng com p any XYZ s hierarchy of goals are clearly defined, th e resulting integrated network of g o als is also called ___ _________. a. unit y of command b. a m e ans-end chain c. management b y o b jectives d. none of t h e above (b; moderate; p. 164)
MULTIPLE-CHOICE QUESTIONS For each of the following c hoose the answer that most completely a n swers the question.
THE IMPORT ANCE OF STRATEGIC MANAGEM E NT
29. Strategic man agem ent is ______ ____. a. a set of mana gerial decisions and actions http://vustudents.ning.com 115
b. oriented to short-run performance of an organization
c. a process that is done best i f it is done quickly d. all of the above (a; moderate; p. 180)
30. Strategic man agem ent uses th e management function( s) _____ _______. a. planning and leading b. organizing c. controlling d. all of the above (d; easy; p. 180)
31. According to your text book, studies of the factors that contribute to organizational
performance have shown _ ____________ relati onship between strategic planning and performance. a. no b. a mi xed c. a negative d. a positive (d; easy; p. 181)
32. Currently strategic practices are not viable for ____________. a. hospitals b. governm ent agencies c. nonpr ofit or ganizations d. none of t h e above (d; moderate; p. 181)
33. __________________ is th e collection of managerial decisions and actions that determ ine the long-ru n performance of an organization. a. Planning b. Goal-oriented management c. Strategic man agem ent d. Leadership (c; moderate; p. 180)
THE STRATEGIC MANAGEMENT PROCESS
34. In the first step of strategic management, the mi ssion of the firm answers the que stion, ____________ a. What business should we be in? b. What is our reason for being in business? c. Who are our customers? d. Who are our creditors? (b; moderate; p. 182)
35. In the first step of strategic management, identify i ng the current strategies and goals provide ___ ________. a. a foundatio n for planni ng b. measurable performance ta rgets for employ ees http://vustudents.ning.com 116
c. a basis to deter mine if the goals need to be changed
d. all of the above (d; difficult; p. 183)
36. In analyzin g th e environm ent, managers should know ____ ________ . a. what the competition is doing b. the comp etiti on s stock price
c. pending legislation that mi ght affect the organization d. A and C are co rrect. (d; moderate; p. 183)
37. Managers have comp leted the second step in strategic managemen t , analy sis of the environm ent, when they ___________. a. have an accur ate picture of what is happening in the external environment b. have beat the comp etition s latest product or service to market c. are aw are of the trends that mi ght affect the organization d. only a and c are true (d; moderate; p. 184)
38. Step 4 of strat egic analy sis involves __ _________. a. selecting strat egies that mi nim i z e or correct organizational weaknesses b. developing and evaluating strategic alternatives c. selecting strategies that exploit organizati onal strengths d. all the above (d; difficult; p. 185)
39. An example of a core co mpetence of a firm is _____ ______. a. an ability to s erve the needs of a particular target mar k et on a large scale b. co mmunicating with customers in their own languages worldwide c. developing least-squared exemptions within its accounting sy stem d. only a and b are true
40. ________________ are the organization s major value-creating skills, capabilities, and resources that deter mine the organization s comp etitive weapons. a. Strengths b. Opportuniti es c. Core co mp eten cies d. Weakness es (c; moderate; p. 184)
41. The third step in strategic management is identification of strengths and weaknesses and is related to analy sis of ____________ . a. the external environm ent b. the internal environm ent c. the alternatives the fir m faces d. time pressur e s involved in serving the customer (b; moderate; p. 184)
42. Relative to the organization s culture, a manager mu st be aware that ___________ . a. strong and weak cultures have different effects on the strategy b. the content of a culture has a major e ffect on the strategies that can be pursued http://vustudents.ning.com 117
c. unimportant factors can su pport escalation of commit ment to strategies
d. a and b (d; difficult; p. 184)
43. The merging of the analyses of intern al and external factors influencing the organization s strategy is k nown as ____________. a. comp lete studies b. organizational behavior an d theor y c. definitional an alysis d. SWOT analysis (d; easy; p. 185)
44. Formulating strategies, the fourth step i n strategic planning, is complete when managers have developed a set of strategies that __________. a. support and com p lement each other b. give the organization rela tive advantage over its rivals c. give the organization the mo st favorable co mp etitive edge d. all of the above (b; moderate; p. 185)
45. The final step in strategic planning answers the question, ____________ a. How effective have our strategies been? b. What business have we been in?
c. What business should we have we been in ? d. How mu ch money have we lost? (a; moderate; p. 186)
46. When an organization is analy zin g its labor suppl y, it is stud y i ng i t s ________________. a. organizational culture b. internal environm ent c. external environm ent d. organizational structure (c; moderate; p. 183)
47. ___________ and __ _________ are outcomes fro m a stud y of t h e external environm ent. a. Threats; wea knesses b. Strengths; weaknesses c. Weights; measures d. Opportuniti es; threats (d; moderate; p. 184)
48. If a bank e sti mates the capabilities of its training and development depart ment e mploy ees prior to im plementing a new training program designed to change their method of providing customer service, it is comp leting what step in the strategic management process? a. identif y i ng opportunities and threats
b. identif y i ng the organization s current m i ssion c. identifyi ng strengths and weaknesses http://vustudents.ning.com d. form ulating strategy 118
(c; moderate; p. 184)
49. In the strategic management process, a ny organiza tional skills or resources that are exceptional or uniqu e are the organization s ____________. a. strength basis b. opportunities c. core co mp eten cies d. skill niches (c; moderate; p. 184)
50. Which of the followi ng is one of th e drawbacks to a strong or ganizational culture that a manager should consider when comp leti ng the strategic management process? a. it can be m o re difficult to change b. employ ees have less understanding of t he planning pr ocess c. employ ee attitudes tend to be strong, but their organiz ational values are weak d. it cancels out any organizational distinctive comp etence (a; easy; p. 185)
TYPES OF ORGANIZATIONAL STRATEGIES
51. Corporate-level strategy determ ines _______ ___. a. what businesses a comp any shoul d be in or wants to be in b. what environment a comp any should be in or wants to be in c. the roles each business unit in an organization will play in the overall strategy d. only a and c are true (d; moderate; p. 187)
52. ___________ strategy dete r mines what businesses an organization should be in. a. Business-level b. Organizational c. Operational-level d. Corporate-level (d; moderate; p. 187)
53. A(n) ___________ strategy addresses o r ganizational weaknesses, helps stabilize operations, and revitalizes organizational resources and capabilities. a. unrelated diversification b. horizontal integration c. vertical integration d. retrench ment (d; moderate; p. 189)
54. There are three main types of growth str ategies, ____ _________. a. concentration, integration, and diversification b. concentration, integration, and exfoliation c. integration, diversification, and infiltration d. concentration, integration, and focus (a; easy; p. 187)
55. When an organization attem p ts to com b ine with other organizations in the same industr y , t h e strategy is known as a _____________ strategy. http://vustudents.ning.com a. growth 119
b. horizontal integration c. vertical integration d. stability (b; moderate; p. 188)
56. When an organization attem p ts to com b in e with other organization s in different, but associated industries, the strategy is known as a _____________ st rategy . a. growth b. horizontal integration c. vertical integration
d. related diversification (d; moderate; p. 188)
57. When an organization attem p ts to com b in e with other organization s in different and disassociated industries, the strategy is known as a _____________ strategy . a. unrelated diversification b. horizontal integration c. vertical integration d. stability (a; moderate; p. 188)
58. When PepsiCo seeks to integrate the strategies of Pepsi, 7-Up International, and Frito-Lay, it is developing what level of business str ategy ? a. functional b. system c. management d. corporate (d; moderate; p. 187)
59. An organization that is diversifyi ng its product line is exhibiting what type of grand strategy? a. stability b. retrench ment c. growth d. maintenance (c; moderate; p. 188)
60. If United Airlines merged with Northwest Airlines, this would be an example of what kind of grand growth strategy ? a. horizontal integration b. acquisition c. expansion d. vertical integration (a; difficult; p. 188)
61. Which of the following describes a co mp any growing by comb ining with other organizations in the same industry? a. forward vertical integration b. backward vertical integration c. horizontal integration d. unrelated diversification (c; moderate; p. 188) http://vustudents.ning.com 120
62. According to the textbook, a stability strategy i s particularly approp riate when ____________ .
a. the firm i s facing slow or no-growth opportunities b. the industry is in a state of rapid up heaval c. both a and b d. neither a or b (c; moderate; p. 189)
63. Which of the following is part of the principles upon w h ich SBUs ar e based? a. Each business unit serves no mo re than three product market segments. b. The strategy i s defined at the corporate level. c. The strategy may be inconsistent with overall organizational needs. d. Each serves a clearly defin ed product-market seg ment. (d; moderate; p. 190)
64. In the Boston Consulting Group matr ix , a ________ does not consume or produce mu ch cash and holds little or no improved performance. a. cash cow b. star c. dog d. question mark (c; moderate; p. 190)
65. In the Boston Consulting Group matrix , a bus iness unit that exists in a low anti cipated growth rate and a hig h market share is known as a __ _______. a. cash cow b. star
c. dog d. question mark (a; moderate; p. 190)
66. In the Boston Consulting Group matrix , a bus iness unit that exists in a high anti cipated growth rate and a low m arket share is known as a __ ________. a. cash cow b. star c. dog d. question mark (d; moderate; p. 190)
67. Which of the four business groups in the corporate portfolio matrix has low growth and high m arket sh are? a. question mar k s b. dogs c. cash cows d. stars (c; moderate; p. 190)
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68. Business-level strategy det er mines _____________. a. what businesses a comp any shoul d be in or wants to be in b. what environment a comp any should be in or wants to be in c. how an organization shoul d comp ete in each of its strategic business units d. all of the above (c; moderate; p. 190)
70. __________________ strategy determines how an organization should com p ete i n each of its businesses. a. Business-level b. Organizational c. Operational-level d. Corporate-level (a; moderate; p. 190)
71. Michael Porter proposes that some ____________ are inherently mo r e profitable than others. a. co mp anies b. industries c. SBUs d. indivi duals (b; easy; p. 192)
72. Which of the following is not a force in the Porter s five forces mo del of industry attractiveness? a. opport unit y f o r new entrants b. opport unit y f o r substitutes c. bargaining power of suppliers d. sustainable com p etitive ad vantage for customers (d; moderate; p. 193)
73. Differentiation as a strategy requires a firm to ____ _______. a. aggressively search out eff i ciencies to maintain the lowest cost structure b. be uniq u e in it s product offering c. ai m at a cost advantage in a niche mark et d. ai m to be similar to its competition in all operations (b; difficult; p. 194)
74. Cost leadership as a strateg y requires a firm to ____ ________. a. aggressively search out eff i ciencies to maintain the lowest cost structure b. be uniq u e in it s product offering c. ai m at a cost advantage in a niche mark et d. ai m to be similar to its competition in most operations (a; difficult; p. 193)
75. A focus strategy requires th at a firm have ___ ________ . a. sustained capital invest me nt and access to capital b. strong m arketing abilities
c. strong basic resear ch skills d. a reputation fo r qualit y or technological leadership (a; difficult; p. 192)
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76. According to Porter s com p etitive st ra tegies framework, wh ich of the following strategies seeks to be unique in its product offering and in its indu stry in ways t h at are widely valued by custome r s?
a. cost leadershi p b. differentiation c. focus d. stuck in the middle
(b; moderate; p. 194)
77. Michael Porter s co mp etitive strategies framework i d entifies three generic co mp etitive strategies: cost leadership, differentiation, and _ __________. a. depth b. breadth c. revenue growth d. focus (d; moderate; p. 194)
78. A firm that is stuck in the middle cannot develop a s t rategy of _____________. a. differentiation b. focus c. cost leadershi p d. B and D are co rrect. (d; moderate; p. 194)
79. In Michael Porter s five forces model of com p etition, _________ ______ is determined by the height of barriers to entry, such as econom ies of scale and brand loyalt y . a. threat of substitutes b. threats of new entrants c. bargaining power of bu y ers d. bargaining power of suppliers (b; difficult; p. 193)
80. In Michael Porter s five forces model of com p etition, _________ ______ is determined by the degree of supplier c oncentration and substitute inputs. a. threat of substitutes b. threat of new entrants c. bargaining power of bu y ers d. bargaining power of suppliers (d; difficult; p. 193)
81. In Michael Porter s five forces model of com p etition, _________ ______ is determined by the industry growth rate, increasing or falling dem a nd, and product differences.
a. threat of substitutes b. threats of new entrants c. bargaining power of bu y ers d. existing rivalry (d; difficult; p. 193)
82. All of the following are mentioned i n the textbook as com p anie s that have used the low -cost leader str ategy except ____ ________ . a. Wal-Mart b. Hyundai c. Southwest Airlines d. Dell Computer Corporation (d; moderate; p. 194) http://vustudents.ning.com 123
83. Industry g r owth rate, increasing o r falling d e ma nd, and produ ct differences are factors th at represent which of the following competitive forces, acco rdin g to Porter? a. threat of new entrants b. threat of substitutes c. bargaining power of bu y ers d. existing rivalr y
84. Functional-level strategy di rectly sup ports ____ ________. a. corporate-level strategy b. business-leve l strategy c. differentiation strategy d. focus strategy (b; difficult; p. 194)
85. An organization is said to have _____ _________ when it has several different businesses that are independent and that formulate th eir own strate gies. a. operational units b. strategic business units c. comp etitive advantages d. legal subunits (b; moderate; p. 191)
86. An example of ________________ is when an organization possesses a char acteristic that sets itself apart from com p etitors, and this gives the firm a distinct edge. a. core co mp eten ce b. co mp etitive power c. legal propriety d. comp etitive advantage (d; difficult; p. 191)
87. To a degree, an organization s commit men t to qualit y and contin uous im provement can differentiate it from comp etitors, but constant improvement and reliabilit y of an organization s products and/or services may r esult in a co mp etitive advantage that is _________. http://vustudents.ning.com a. weighted b. sustainable c. conservative d. uncertain (b; difficult; p. 192) 124
88. Switching costs and buy er lo y alty are examples of str ategic forces that deter mine the ____________ . a. threat of substitutes b. threats of new entrants c. bargaining power of bu y ers d. bargaining power of suppliers (a; difficult; p. 193)
STRATEGIC MANAGEM E NT IN TOD AY S ENVIRONMENT
89. The prem ise of the rule of three, is that _____________. a. no industry c an support m o re than three super niche players b. there are usually only three full line generalists c. three comp an ies usually dominate the majority of mar k et share d. b and c (d; moderate; p. 195)
90. The rule of three say s that mo st markets evolve _____________. a. in spurts b. rapidl y c. in a curviline ar fashion d. in a cy clical fashion (d; moderate; p. 196)
91. According to the textboo k, senior manag ers mu st deci de whether or not the emphasis of their inno vation efforts is go ing t o be u pon _ ___________. a. basic researc h b. product i nnovation c. process developm ent d. all of the above (d; moderate; p. 199)
92. Process development strategies seek to achieve a comp etitive advantage by _____________. a. looking for w ay s to enhance existing work processes
b. making the firm mo re effi cient c. making the firm mo re effe ctive d. a and b (d; easy; p. 199)
93. An Internet based knowledge management sy stem that resulted in shorter customer response ti mes would be one e-business tec hnique that contributes to the comp etitive advantage of a _____________. a. cost leader b. differentiator c. focuser d. star (b; moderate; p. 197)
94. According to the textbook, the first organiza tion to br ing a product or service to market is often referred to as the _ __________. a. prime player b. market leader c. first m over d. trailblazer (c; easy; p. 199)
95. According to the textbo ok , custom er service strategies invol ve giving the c u stomer what they wa nt, effective communication, and _ ___________.
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a. providing employees with incentives and bonuses for good service b. providing employees with custo mer service training c. co mmitment from upper managem ent d. none of t h e above (b; moderate; p. 198)
SCENARIO QU ESTIO N S For each of the following c hoose the answer that most completely a n swers the question.
THE STRATEGIC MANAGEMENT PROCESS
SWOT Analysis (Scenario)
As a process of self-exa mi nation during her senior y ear of college, Casey decides to develop a SWOT analysis of her prospects relative to getting a job.
96. Casey realizes that she has a personal charact eristic that suggests she is not com f ortable interacting with strangers. She interprets this as a(n) _____ ______ i f she is get a job as a salesperson. a. alternative
b. strength c. weaknes s d. opportunit y (c; moderate; p. 186)
97. Casey majored in m arketin g and really enjoyed studies in market research. Through research on the Internet and in the university library , s h e discovers that this industry appears to have significant positive external trends. S h e interprets this as a(n) ___________. a. alternative b. strength c. weaknes s d. opportunit y (d; moderate; p. 186)
98. Casey begins outlini ng her 5- y ear car eer goals. These should i n clude ____________. a. the t y pe of j ob she would li ke to have b. how many people she woul d like to be managing c. the salary she would like to be making d. all of the above (d; difficult; p. 186)
99. Casey finall y outlines a 5- year career act i on plan. This consists of ___________. a. actions required to acco mp lish her caree r goals b. statements of what she will need to do to acco mp lish her career goals
c. definitions of assistance sh e will need and how she will acquire the assist ance d. all of the above (d; moderate; p. 186)
100. Casey has been involved i n ______________ at a personal level. a. opportunit y analysis b. risk avoidance c. strategic planning
http://vustudents.ning.com d. Stage decision m aking (c; easy; p. 186)
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TYPES OF ORGANI ZATIO NAL STRATE GI ES
Powerballs (S cenario)
Colleen invested a dollar in the Powerball Lotter y and won $60 million. Su bsequently, she decides to star t her own business.
101. Initiall y she begins a business that has a single-line business. She realizes that this organization will need a ____________ strategy. a. business-leve l
b. organizational c. operational-level d. corporate-level (a; moderate; p. 190)
102. Colleen decides that she wants to assem b le lawn mo wers. She decides that she wants a business to develop a distinctive edge in producing high-quality lawn m o wers. This emphasis on quality is to be so strong that her co mp any will have a ___________ that will set her comp any apart from her co mp etition. a. core co mp eten ce b. co mp etitive power c. legal propriety d. comp etitive advantage (d; difficult; p. 191)
103. Colleen is successful after the first 3 y ears, and she is approached by a com p etito r who is nearing retirement age. T h e comp etitor is interested in selling his business to Colleen. For Colleen, th is would be a(n) ____ ______ strategy . a. unrelated diversification b. horizontal integration c. vertical integration d. retrench ment (b; difficult; p. 188)
104. Before Colleen can purchase her comp etitor s business, she finds another business
opport unit y i n a supplier who sells her wheel s for lawnmo wers. This would serve her as a(n) ____ ________. a. unrelated diversification b. horizontal integration c. vertical integration d. related diversification (d; difficult; p. 188)
105. A business broker hears that Colleen is interested in purchasing a business and approaches her with an offer to sell her a co mp any that owns a patent on a new roofing product and who installs this new roofing in t h e southwestern United States. If she buy s this firm , she will be using a(n) _____________ strategy . a. unrelated diversification b. horizontal integration c. vertical integration d. related diversification (a; difficult; p. 188)
106. No matter which business Colleen decides to buy , she intends to operate each business independently and allow each to determine its own strategy . This will mean that each co mp any will be a(n) ___ __________. b. strategic business unit
c. co mp etitive advantage d. legal subunit (b; moderate; p. 191)
Un Taco Pequeno (Scenario) a. operational unit http://vustudents.ning.com 128
Imagine that you are the president of Taco Rocket, a new and successful chain of 100 Mexican fast-food restaurants. The success you have experienced in the last 5 years has yo u thinki ng of wh at to do with the business next. Should y ou expand the business at the current rate? Open new and different restaurants? What?
107. Because of the good profits and a fear of growing too fast, yo u decide to keep Taco Rocket in the same business and do not change the m e nu, hoping to retain the same ma rket share and return-on- investme nt record. This would be considered a ______________ strategy. a. stability b. growth c. co mb ination d. diversification (a; easy; p. 188)
108. If you decided to purchase a local five-s tore hardware chain because it was a good
investment, this would be an example of _____________. a. a lateral growth strategy b. a co mb ination purchase c. related diversification d. unrelated diversification (d; moderate; p. 188)
109. If you decided to concentrate on T aco Rocket s prim ary business, only increasing the m e nu to include new items such as enchiladas and rice bowls, this would be an example of wh at type of growth strategy? a. lateral growth b. horizontal integration c. concentration d. related diversification (c; moderate; p. 187)
110. You ve decided to purchase a con t rolli ng i n terest in a chain of Oriental fast -food restaurants, called Honk Kong Fooey . However, y ou have decided to change t h e name
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of the chain to the Shanghai Grill. This m ove is mo st representati ve of what type of growth strateg y ?
a. lateral growth b. horizontal integration c. unrelated diversification d. related diversification (b; moderate; p. 188)
111. Your oldest supplier, Zorro Distributors , is a fam ily-owned firm. Recently , the fi r m s president, Diego De La Vega, made the deci sion to retire. To his di sappointmen t , none of his five children stepped forward to take his place a t the helm of the firm. Sr. De La Vega is concerned that if h e sells his co mp any t o a larger distribut or, many of h i s employ ees will lose their jobs. You appr oach your old friend with a generous off er to buy Zorro and continue its current operations. Should y our offer be accepted, Taco Rocket would be undertaking _ __________. a. lateral growth b. unrelated diversification c. forward vertical integration d. backward vertical integration (d; moderate; p. 188)
El Taco Grande (Scenario)
It is now 10 years later (see previous scenario) and, as the orig inal owner of Taco Rocket, y ou have seen your business holdings grow substantial l y. The number of stores y ou own and franchise has grown b y 200 percent and y ou own a num ber of co mp anies in related and unrelated areas.
112. You now ne ed to decide how to best m a nage and utilize the large num ber of assets represented by the num e rous com panies you own. For each SBU, ma nagers m ust create a __________ strategy to determine how your corporation should compete in each of its businesses. a. corporate-level b. business- leve l c. functional-level d. tactical (b; moderate; p. 190)
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113. What level of strategy integrates the strategies of your various business units (Taco Rocket, Shanghai Grill, Zorro Distributors)? a. corporate level b. business level c. functional level
d. strategic level (a; easy; p. 187)
114. You called the Boston Consulting Group (BCG), and they have provided you with so me advice based on their famous corporate portfolio matrix. Your oldest holding, Taco Rocket, has not grown mu ch in recent y ears, but due to low debt, generates a huge amount of cash. Accor d ing to BCG, Taco Rocket would be considered a ____________ . a. cash cow b. star c. question mark d. dog (a; moderate; p. 190)
115. Recently, y ou also purchased a co mp any that ma nufactures a new satellit e dish, allowing you to enter into the cable tel evision mark et. The business is profitable and growing, but the technological unk no wns make it risky . BGC considers it a ___________. a. cash cow b. star c. question mark d. dog (c; moderate; p. 190)
116. Another purchase you ma de was to acquire a local coffee-cart chain with 30 locations
around th e city. You don t see it growing ver y mu ch, but then, it doesn t cost mu ch to operate. BCG would label t his venture a ____ _________. a. cash cow b. star c. question mark d. dog (d; moderate; p. 190)
Patrick the E-business Entrepreneur (Scenario)
Patrick majored in entrepreneurship and co mputer science in college. After graduation, he decided to start his own business a s an e - business entrepreneur, founding an online B2B reverse auctio n comp any called Com puS ave.
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117. While h i s mo re established com p etitors have concentrated on the suppl y ma rket Fortune 1000-t ype fir ms, Dave has decided to concentrate on the Small Medium-size Enterprise (SME) marke t , concentrating on reselling com puter-r elated hardware to firms in the
local tri-state area so that he can keep his marketing costs low. Thi s strategy wo uld be character ized by Porter as a ___________ strategy . a. differentiation b. low cost c. focus d. none of t h e above (a; difficult; p. 194)
118. Patrick determined that he needed a new marketing strategy that would help increase the awarene ss of his com p a ny and the benefits it could provide to local businesse s. In the textboo k, devising this new marketin g strategy wo uld be term ed as a _____________. a. corporate-level strategy b. business-leve l strategy c. functional-level strategy d. tactical str ate gy (b; moderate; p. 190)
119. After hiring several employ ees, Patrick re quires that each person in this com p any be involved in st udy i ng trends invol ving ne w technology, comp etitors, and custom ers. These em ploy ees are involved in ______________. a. external anal y sis b. internal environm ent c. strategic managem ent d. bounded ratio nalit y
(a; difficult; p. 183)
Environmental Scanning
29. Environmental scanning is the screening of large am ounts of inf o rmation to anti cipate and ____________. a. follow new legislation that is being passed by Congress b. interpret changes in the environm ent c. correct failure in pollution equipment d. forecast cli m atic changes t h at will affect material s used (b; moderate; p. 206)
30. Comp etitor intelligence experts suggest that 80 percent of what a manager need to know about com p etitors can be found out from ______________. a. co mp anies such as Dun & Bradstreet b. their com p etitors em ploy ees, suppliers, and custome r s c. their com p etitors pr oduc ts, suppliers, an d custom ers d. their own employees, suppliers, and customers (d; moderate; p. 207)
31. When seeking comp etitor intelligence, ther e is often a fine line between what s considered legal and ethical a nd what s c onsidered ____________. a. illegal and ethical b. illegal and unethical c. legal and une thical d. practical and legal (c; moderate; p. 208)
32. Many firm s regularly buy co mp etitors pr oducts and have their own engineers study them to learn about new technical innova tions. This pr ocess is called ______________. a. co mp etitor engineering b. comp etition engineering c. strategic engineering d. reverse engineering (d; moderate; p. 207) 33. The value of global scanning is la rgel y dependent on the ____________. a. extent of foreign comp etition activities in the m arket b. price that foreign com p etition charges in the market c. extent of govern ment regulation activities in the foreign m a rket d. extent of the organization s global activities (d; moderate; p. 208)
34. What are three tools that managers can use to analyze their organization s environment? a. strategic planning, en vironmental scanning, and TQM
b. forecasting, budgeting, and time manage ment c. environm enta l scanning, for ecasting, and benchmarking d. benchmarking, planni ng, a nd evaluating (c; moderate; p. 206)
35. According to your text book, one of t h e fastest-growing areas of environmental scanning is __ _____________.
a. regression analysis b. co mp etitor intelligence c. reengineering d. forecasting (b; moderate; p. 207)
36. Comp etitor intelligence allows manage rs to do which of the foll owing? a. react to comp etitor actions b. cut cost below the co mp et ition c. increase mark et diversificat ion d. anticipate com p etitor actions (d; moderate; p. 207)
37. Which of the following is an accurate statement concerning the process of comp etitor intelligence gathering? a. it is legal but unethical b. it is time consuming and costly to gather c. Eighty percent of what managers need to know about comp etitors can be foun d
from their own em ploy ees, suppliers, and customers. d. it ty pically involves organizational spy ing (c; moderate; p. 207)
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38. When a firm s engineers break dow n a co mp etitor s pro duct to learn about new technical innovations, t h ey are engagin g in _ ____________. a. reverse engineering b. espionage c. reengineering d. illegal activities (a; easy; p. 208)
39. Environmental scanning creates the foundation for ____________. a. project managem ent b. forecasts c. benchmarking d. budgetin g (b; difficult; p. 209)
40. Rese arch has shown that comp anies with advanced environmental scanning sy stems _____________. a. increased thei r profits and revenue growth b. collect mo re data, but no t mu ch differe nce in their pr ofits and revenue growth c. i mproved thei r abilit y to comp ete in the market place d. decreased their profits and revenue growth (a; moderate; p. 206)
41. Managers need forecasts that will allow them to predict future events effectively and ___________. a. accurately b. efficiently c. specifically d. in a timely manner (d; moderate; p. 208)
42. Quantitative forecasting applies a set of mathematical rules to ____________. a. develop predictions of outco mes from customers opin i ons b. a serie s of past data to predict outcom es c. analyze what has happened in the past and determ ine when it will occur again d. estimate the num ber of products that shou ld be produc ed at a given time (b; moderate; p. 209)
43. The goal of fo recasting is to provide ma na gers ____________. a. accurate predictions of trends and events
b. decisions as to what customers will be dem anding and when c. inform ation about th e dy na mics of environmental change d. with inform at ion that will f acilitate decision m aking (d; difficult; p. 209)
44. The accuracy of a forecast decreases as th e ______________. a. quantity of data increas es b. si mp licity of the forecast method increases c. period you r e try i ng to pre d ict increase s d. num ber of custo mers incr e ases (c; moderate; p. 210) http://vustudents.ning.com 133
45. Forecasting techniques fall into what two categories? a. fixed asset an d hum an capi t al b. predictive and confirmatory c. quantitative and qualitative d. e mpirical and conceptual (c ; m o derate; p. 209)
46. If General Mo tors plans on changing their truck paint color sche me because they believe that in the future mo r e wo men will be interested in purchasing these vehicles,
this is an exam ple of what kind of environm ental scanning ? a. scenario b. forecasting c. benchmarking d. anticipating (b; moderate; pp. 209-210)
47. What type of forecastin g technique relies on the judgmen t and opini on of knowledgeable individ u als? a. qualitative b. short-term c. confirmatory d. predictive (a; moderate; p. 209)
48. One suggestion for im proving forecasting effectiveness is to _____________. a. use co mp lex forecasting sequences b. gather as mu c h data as possible c. always e mploy global forecasting d. use simp le fo recasting tech niques (d; difficult; p. 210)
49. Which of the following is one suggestion for improving forecasting effectivenes s ? a. do not utilize a no change scenario b. base forecasts beyond the next 2 y ears
c. utilize the half-life esti mation m odel d. employ mu ltiple forecasting m ethods (d; moderate; p. 210)
50. Which of the following is a suggestion for im proving forecasting ef fectiveness? a. develop a sing le and effective method b. pay attenti on to trend tur n ing p o ints c. develop complex and detailed mathematical models d. shorten the length of forecasts (d; moderate; p. 210)
51. Virtually any co mponent in the organization s __ ________ enviro nments can be forecasted. a. general and specific b. internal and external c. external d. general (c; difficult; p. 209)
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52. Qualitative forecasting uses the judgmen t and opi nions of __________ to predict
outcome s. a. custo mers and suppliers b. distributors and sup p liers c. executives d. knowledgeable individ u als (d; difficult; p. 209)
53. Forecasting techniques are m o st accura t e when the environm ent is __________. a. changing inversely b. dy nam i c on the long term, so turning po in ts can be identified c. not rapidl y ch anging d. seasonal, but not c y clical (c; moderate; p. 210)
54. When comp a r ing every forecast with a no-change (in an environme n t) forecast, the no-change foreca st is accurat e approxim ately __________. a. half of the ti me b. three-fourths of the tim e c. four-thirds of the tim e d. 80 percent of the time (a; difficult; p. 210)
55. Benchmarking is the search for the best practices amo ng com p etitors or noncompetitors that lead to th eir ____________. a. achieving such a large mar k et share b. ability to so a ccurately predict the envir onm ent
c. superior performance d. ability to i d entify new market niches (c; difficult; p. 210)
56. Which of the following is true concerning benchmarking? a. Benchmarking alway s involves analyzing a com p etito r. b. Benchmarking is m o st effective when analyzing withi n y our own industry . c. Benchmarking may invol ve analy zing a comp any with a co mp letely different product. d. Benchmarking foreign comp anies is not suggested due to cultural differences. (c; moderate; p. 210)
57. Some comp a n ies have chosen so me pret ty unusual benchmarking p artners. Southwest Airlines studied ____________. a. package handling at FedEx hubs b. UPS package-handling hubs c. Indy pit crews d. tire changers at Goodyear stores (c; moderate; p. 210)
Techniques fo r Allocating Resourc es
58. Which of the following is a n accurate statem ent about budgets? a. they are typically not used for tim e estimating b. by nature, they are only financially based
c. they m ay be used for orga nizational space planning d. they are typically used for large and s mal l capital expenditures (c; difficult; p. 212)
59. A budget is a num erical plan for allocating resources _____________. a. to specific act ivities b. dedicated to special projects c. areas of production d. developing n ew products (a; difficult; p. 212)
60. Budgets are popular mo st likely because they r e applicable to a wide variety of organizations and ___________. a. define how much m oney will be spent b. specify how mu ch money with organization will receive c. work activities within orga nizations d. estimate the num ber of units that will produce (c; difficult; p. 212)
61. Many managers don t like preparing budgets because th ey feel the process is time consuming, inflexible, ine fficient, and _ ___________.
a. infallible b. inflationary c. insignificant d. ineffective (d; difficult; p. 212)
62. Budgeting is an important managerial ac tivit y because it forces financial discipline and structure __________. a. with the cash part of the organization b. throug hout the organization c. in the areas of the organization that need it the mo st d. especially with start-up com p anies (b; difficult; p. 212)
63. The Gantt chart was developed during the early 1900s by Henry Gantt, an assoc i ate of the scientific management leader ________________. a. Henri Fayo l b. Fredrich Traylor c. Henry Ford d. Frederick Taylor (d; moderate; p. 213)
64. The Gantt chart visually s hows when tasks are supposed to be done and com p ares that with the ____________. a. supervisors e stim ate of comp letion
b. actual progress on each c. scheduled delivery of m ate rials d. customer s requested date of delivery (b; difficult; p. 213)
65. Gantt charts were developed to help ma nagers perform ________ _____. a. budgeting http://vustudents.ning.com 136
b. benchmarking c. regression analy sis d. scheduling (d; moderate; p. 213)
66. A Gantt chart is essentially a bar gra ph with __________ axis and __________ axis. a. time on the vertical; the ac tivities to be scheduled on the horizontal b. time on either; the activities to be scheduled on th e ot her c. time on the vertical; project comp letion on the horizontal d. time on the horizontal; the activities to be scheduled on the vertical (d; difficult; p. 213)
67. Load charts list on the verti cal axis either departments or ___ __________.
a. functional areas b. specific re sources c. budgets d. product weig hts (b; moderate; p. 214)
68. The Program Evaluation and Review Technique (PER T) is especially useful in scheduling _____________. a. projects b. programs c. processe s d. planning (a; difficult; p. 214)
69. The four terms that are req u ired to c onstruct a PERT network are: events, activities, ____________ , and _ ___________. a. crucial path; slack time b. critical path; esti mated ti me c. crucial path; earliest date d. slack ti me; critical path (d; moderate; p. 215)
70. A PERT network depicts the sequence of activ ities needed to complete a project and the __________ each activity. a. estimated day of
b. time or costs associated with c. amount of money needed for d. step of (b; difficult; p. 215)
71. In a PERT network, events are __________. a. end points that represent th e comp letio n of m ajor act ivities b. the longest or the m o st time-consuming sequence of events in a PERT network c. the am ount of time an indiv i dual activity can be delayed without delay i ng the whole project d. all key activities needed to comp lete a project (a; difficult; p. 215) http://vustudents.ning.com 137
72. Which of the following steps in the PER T process are end points that represent the co mp letion of major activities? a. critical paths b. events c. checkpoints
d. sections (b; difficult; p. 215)
73. Which of the PERT steps represent the time or resources required to progress from on e event to another? a. events b. critical paths c. checkpoints d. activities (d; moderate; p. 215)
74. In the PERT process, what is the critical path? a. the central guideline that other activities feed into b. the checkpoin t for com p aring standards of com p letion c. the mo st ti me-consum ing s equence of events and activities d. the mo st costly path in a scheduling outline (c; moderate; p. 215)
75. What ty pe of technique is widely used to help managers make profit projections? a. factor analysis b. cost accounting c. breakeven analy sis d. PERT (c; easy; p. 216)
76. If a retail sales manager wants to know how many denim jackets mu st b e sold in order to reach a spe cified profit objective, he or sh e is employ ing what type of planning tool? a. breakeven analy sis b. PERT c. Gantt chart d. cost accounting (a; difficult; p. 216)
77. Breakeven analysis is a widely used r esource allocation techniq u e to help m anagers make _____________. a. project total cost estimat es b. projections like PERT except it uses costs instead of ti me units c. profit pr ojections d. fixed and variable cost esti mates (c; difficult; p. 216) 78. In order to co mpute the breakeven point, a manager needs to know t h e unit price of the product being sold, the vari able cost per unit, and _______________ . a. total num ber of units sold b. fixed costs per unit sold c. total fixed costs d. none of t h e above (c; easy; p. 216)
79. Examples of fixed costs include ______________. http://vustudents.ning.com 138
http://vustudents.ning.com a. propert y taxe s b. energy costs c. labor costs d. raw materials (a; easy; p. 217)
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80. According to the textboo k, so me applications for linea r programm i n g include ______________. a. selecting transportation routes that mi nimize shipping costs b. allocating an advertising b udget am ong different plans c. optimally assigning person al to projects d. all of the above (d; moderate; p. 217)
81. Becaus e linear programm i n g requires that there be lim i t ed resources and outcom e optimization, it ___ _________. a. cannot be app lied to all resource allocation prob lem s b. can be used for all profit al location pro b le ms c. can be applied to all resource allocation problem s d. calculate s lost time (a; difficult; p. 217)
82. If there is a linear relationship between variables included in a li near programming model, then when there is a change in on e variable, there mu st be an ______________. a. even straight line established between the two points b. exactly pro p or tional chang e in the other variable c. estimated profit change in the other d. equal absolute change in the other (b; difficult; p. 217)
83. An organization breaks even when its total revenue is just enough to equal its __________. a. fixed cost b. breakeven costs c. variable costs d. total cost (d; moderate; p. 216)
Contemporary Planning Techniques
84. To plan a project, all activi ties in the proj ect and the resources need ed to do them m u st be ____________. a. satisfied b. on hand
c. identified d. trained (c; difficult; p. 220)
85. The role of project manage r re mains diff icult because she or he is managing people who ______________. a. will make m i stakes during the project
b. might not show for work on the da y of an important presentation c. are not skilled enough to participate in the project d. are still linked to their permanent work areas (d; difficult; p. 220)
86. A project is considered to be a one-time set of activities that has _______________. a. definitive assessment stages across ti me b. significant points to be analy zed c. a definite beginning and en ding point in time d. an esti mat ed start and finished date (c; difficult; p. 220)
87. Project managem ent is the task of getting a project s activities done on tim e, within budget, and __________. a. following directions
b. making adjustments in plans c. according to specifications d. within the li mits of city e ngineering (c; difficult; p. 220)
88. The only real influence proj ect man agers have is __________. a. their ability t o keep the pr oject moving forward b. their communication skills and their pow er of persuasion c. the abilit y of the supplier to deliver d. insistence tha t the project be finished according to plans (b; moderate; p. 220)
89. Developing scenarios can be described as ______________. a. planning b. thinki ng about what will have c. guessing as to what will change d. contingency planning (d; difficult; p. 221)
90. Different assump tions in a scenar io can lead to ________________. a. different outcomes b. the sa me estimates
c. disputes over which is correct d. divergent ideas into results (a; difficult; p. 221)
91. Although scenario planning is useful in antic ipating events that can be anticipated, it is difficult to ____________. a. establish date lines b. prepare for increas ed sale s of output c. present the fact when they occur d. forecast random events (d; difficult; p. 221)
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92. The task of getting the activities done on tim e, within budget, and according to specifications is ____ _________. a. breakeven analysis b. linear programming c. probability analysis d. project managem ent (d; moderate: p. 220)
93. As managers asse ss the en vironm ent, issues and concerns that could affect their organization s current or pl anned operations are likely to be revealed, and the y __________. a. won t be equ ally im portant b. won t be equally associated c. will be equally important d. will be as important as other, but not equal in value (a; difficult; p. 221)
94. The intent of scenario planning is not to try to predict the future, but to reduce uncertainty by __________ . a. calculating the potential pr ofits from different specifi ed conditions b. pretending that the custo mer needs are d i fferent from forecast ed c. supposing tha t a different market mi x existed d. play ing out potential situations under dif f erent specifi ed conditions (d; moderate; p. 221)
95. Planning tools and techniqu es can help managers prepare __________. a. confidently f o r the future b. future events c. better budget s d. larger projects (a; difficult; p. 220)
96. Planning tools and techniques will neve r replace the manager s __________ in using the information gained to develop effective and efficient plans. a. knowledge an d expertise b. skills and capabilities c. mo tivation and leadership d. time and efforts (b; difficult; p. 220)
SCENARIO QUESTIONS For each of the following c hoose the answer that most completely a n swers the question.
Techniques fo r Asse ssing the Environment
Dollars to Donuts (Scenario)
Ralph Friedgrin is the owne r of a chain of fi ve donut shops in Sm alltown, MD. Smalltown is located along the Interstate 95, about half-way between Lost and N o where.
97. Mr. Friedgrin demands that the five stor e managers during their weekly meeting discuss what the customers in their stores are requ es ting. Mr. Friedgrin will alway s read the monthly d o nu t-industr y magazine, Hole y Mazole . He always attends the Annual
National Conference of Do nut Makers and u pdates his managers when he return s. These activities are exampl es of: a. co mp etitor intelligence b. boundary spanning c. environmental scanning d. intellectual e x ercise (c; difficult; p. 206)
98. Ralph Friedgrin recently had three selected stores experi ment with three new frying oils. Customers were then asked to take a taste-preference test of three sample donuts, one for each of the oils: N, O, and W. Based upon the results of thi s test, it was concluded tha t oil N in t h e test was favored. Which pla nning tool was Ralph Friedgrin using in this i n stancel? a. quantitative forecasting technique b. Delphi technique c. focus group t echnique d. qualitative forecasting tech nique (d; moderate; p. 209)
99. On occasion, Ralph Friedgrin goes to nearby , larger towns such as Lost and Nowhere to visit big chain donut shops. Ralph purchases donuts and chats with these custo mers about their donut likes and dislikes. Fred also will peek into the kitchen to vie w the equipment, or when he can, he will watch through t h e customer observation window so he will see the whole process. When Ralph Friedgrin travels to Lost and Nowhere to talk with his co mp etitor s customers, peek at the equi pment, and watch through his
customer observation wind ow, he is performing which planning technique? a. co mp etitor intelligence b. environmental scanning c. intellectual e x ercise d. boundary spanning (a; difficult; p. 207)
100. If Ralph Friedgrin knew the average num b er of donu ts that Smalltown adults b ought per week and the num ber of Smalltown adults , he could then use w h ich planni ng tool ? a. environmental scanning b. qualitative forecasting tech nique c. quantitative forecasting technique d. scenario projection technique (c; difficult; p. 209)
101. Ralph Friedgrin went to d onut sho p s in Lost and No where so he could talk with his co mp etitor s customers, peak at their equipm ent, and evaluate their donut-m akin g process. These acts were _ _________. a. legal b. legal and ethical c. ethical d. neither legal nor ethical (b; easy; p. 208)
102. Ralph Friedgrin contacted the owner of a NASCAR racing team to see if he could
spend tim e with its pit crew to study t heir tea mwork. This is an example of: http://vustudents.ning.com 142
http://vustudents.ning.com a. qualitative forecasting b. benchmarking c. quantitative forecasting d. scanning. (b; easy; p. 210)
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103. Fred recently went on a well-deserved vacation with his wife, Wil ma. While at the beachfront resort, Fred took many notes regard ing the excellent serv i ce he rec eived. On the flight home, Fred reviewed his notes to see what lessons he could appl y to his donut shops. When Fred is out looking at the best practices of the other donut stores in these towns, he is performing which of the following? a. qualitative forecasting b. benchmarking c. environmental scanning d. scenario planning (b; easy; p. 210)
104. Ralph s largest supplier recently approach ed him abo u t im plementing a Web-based software that will utilize data about past sales trends prom otions and other factors to
jointly calcul ate a demand forecast for particular products. Ralph s supplier referred to this sy stem as a _____ _____. a. JIT sy stem b. CPFR system c. RFID system d. SCM system (b; moderate; p. 209)
Techniques fo r Allocating Resourc es
Donut Ex pansion (Scenario)
Ralph Friedgrin, owner of f i ve donut shops in Sm allto wn, MD, located half the way between Lost and Nowhere, recently began developm ent of expansion plans based on analyses conducted with his plan ning tools and techniqu es. His management team conclu ded that it was time to expand his donut business to a whol e new market nich e. Fred has asked that an estimated ti me of construction and estimated costs be provided . Fred approved construction of two stores in Littleville and recently contracted with the engineering-manufacturing firm from Nowhere, Planning Plus, I n c. (PPI), to build t he stores. Fred has been informin g PPI of what he calls best practices tha t other donut stor es in nearby towns are using and wa nts them incorporated into these stores.
105. PPI developed a diagram sim ilar to a flowchart to estimate the probable time req u ired to com p lete construction of the two stor es. This flowchart-like diagram is known as which of the fo llowing?
a. program evaluation and review technique b. Gantt chart c. linear programming d. scheduling (b; moderate; p. 206)
106. Fred knew how mu ch capacity it took to produce each t y pe of donut with each type of glaze and the profit m argins for each ty pe of donut with each type of glaze. If he wants analyze the product m i x that will maximize pr ofits, then he should use which of the following? a. budgeting
http://vustudents.ning.com b. break-even analysis c. linear programming d. scheduling (c; moderate; pp. 217-218)
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107. Fred has planned the openi ng day activit ies and is goi ng to be open for 24 hours. He has planned who is to work which ho ur s and who is to perform wh ich duties dur ing the time open. Fred has also planned which type of d onut is to be m ade at what tim e. What Fred did in making these pl ans is know as which of the following? a. Gantt chart
b. PERT c. linear programming d. scheduling (d; easy; p. 213)
Allocating Resources at Planning Plus, Inc. (Scenario)
Management from all levels of Planning Plus, Inc. (PPI) have been making decisions as to how to best accomp lish next y ear s orga nizational plans, objectives, and goals. Th e production de part ment has been making numerical plans to allocate the number of em ploy ees, man-hours per machine, an d so on withi n the department. Accounting has been determ ining the production quantit y when ther e will be enough tot al revenue to just equal its total costs. Purchasing has been establ i shing delivery dates that align with the need dates of the material in the pro duct i on departm e nt. Marketing has b een planning the introduction of a new product. What Marketing is using is essentially a bar graph with tim e on the horizontal axis and activities to be scheduled on the other.
108. When the Production Departm ent made num erical plans to allocate the num ber of employ ees, man-hours per machine, and so on within th e departmen t , it was using which of the following resource allocation techniques? a. scheduling b. linear programming
c. break-even analysis d. budgeting (d; difficult; p. 212)
109. When Purchasing establishes delivery dates that align with the need dates of the material in the productio n department, Purchasing is using which of the following resource alloc ation techniques? a. scheduling b. linear programming c. break-even analysis d. budgeting (a; moderate; p. 213)
110. When Marketing is using what is essentially a bar graph with tim e on the ho rizo ntal axis and activities to be scheduled on t h e other, it is us ing which of t h e following resource alloc ation techniques? a. PERT
b. load chart c. Gantt chart d. scheduling (c; moderate; p. 206)
111. When Accounting has determined the pr oduction quantity where there will be enough total revenue to just equal i t s total costs, then Accounting is using which of the following resource allocation techniq u es? a. budgeting b. break-even analysis c. load chart d. scheduling (b; moderate; p. 216)
112. Top m anagement has put together a chart that lists entire departments on the ve rtical axis and time on the horizontal axis. This allows managers to plan and control capacity utilization. Su ch a chart is known as a ___________. a. Gantt chart b. PERT c. load chart d. none of t h e above (c; moderate; p. 214)
113. The sales and m arketing departm ent is planning t o undertake a large departmental reorganization. This project will req u ire hundreds of individual activities, so me of which mu st be done simultaneously a nd some of which can t begin until preceding activities have been comp leted. How mi ght managers schedule such a com p lex project?
a. Gantt chart b. PERT network anal y sis c. load chart d. collaborative planning and forecasting (b; moderate; pp. 214-215)
114. Th e ma rk eting depar t ment is consid er ing new technique s for allocating their li mited adver tising bud get am ong vari ous pr oduct brands. What technique would be mo st appr opriate? a. scheduling b. break-even analy sis c. linear programming d. PERT network anal y sis (c; moderate; pp. 217-218)
115. The logistics department is consideri ng new techniques for selecting transportation routes that mi nim i z e shipping costs. What technique would be m o st appropriate? a. scheduling b. break-even analy sis c. linear programming d. PERT network anal y sis (c; mo derate; p. 217-218) http://vustudents.ning.com 145
DEFINING ORGANIZATIONAL STRUCTURE
31. Organizational design is based on decisions about ____________. a. work specialization and departmentalization b. chain of command and span of contr o l c. centralization and decentralization d. all of the above (d; moderate; p. 234)
32. Which statement accurately defines work specializatio n? a. the degree to which tasks a r e divided into separate jobs b. individual employ ees speci alize in doing pa rt of an activity rather than the entire activity c. jobs are ranked relative only to their worth or value to the busines ses d. a and b (d; difficult; p. 235)
33. On what basis are jobs grouped in order to acco mp lish organizational goals? a. departmentalization b. centralization c. formalization d. coordination
34. Sales responsibilities divided into the Southwest, Midwest, so uthern, nort hern, and western region s would be an exam ple of what type of departmentalization? a. product b. geographic c. process d. outcome (b; easy; p. 236)
35. Grouping activ ities on the basis of customer flow is _____________. a. functional de partmentalization b. product departmentalizatio n c. geographical departmentalization d. process depart mentalizatio n (d; moderate; p. 236)
36. What kind of depart mentali zation would be in place in a governmen t organization where different public service responsibilities are divided into activities for employ ers, children, and the disabled? a. product b. geographic c. outcom e d. customer (d; moderate; p. 236)
37. Today s competitive business environ ment has greatly increased t h e im portance of what type of depart mentalization? a. geographic http://vustudents.ning.com 146
b. customer c. product d. process (b; difficult; p. 237)
38. Functional de partmentalization gr oups jobs b y _ _____________. a. tasks they perform b. territories they serve c. products or services they manufacture or produce d. type of customer they serve (a; moderate; p. 236)
39. Assigning designers, production worker s, and salespeople to a comm on work group to develop a new product is known as a ________________ team. a. differentiated b. product c. cross-functional
d. weak (c; moderate; p. 237)
40. In describing the degree to which tasks in an organiza tion are divided into separate jobs, managers use the term ___ ________. a. work specialization b. departmentalization c. chain of command d. span of contro l (a; moderate; p. 235)
41. Depart mentalization based on _______________ groups jobs based on the territory or phy sical location. a. functional b. product c. geographic d. matrix (c; easy; p. 236)
42. ______________ departme ntalization is based on the product or customer flow th rough the organization. a. Product b. Functional c. Process
d. Organizational structure (c; moderate; p. 237)
43. ______________ departme ntalization is used mo r e in recent y ears to better monitor the needs of customers and to respond to changes in those needs. a. Needs-ba sed b. Functional c. Process d. Customer (d; moderate; p. 237)
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44. The continu ou s line of aut horit y t h at extends from the upper levels of m anagement to the lowest levels of the organiz ation is __ __________. a. authorized line of responsibility b. unity of command c. responsibilit y factor d. chain of command (d; mo derate; p. 237)
45. ______________ refers to t h e rights inhe rent to a posit ion that allow s a manager to tell subordinates what to do and expect them to do it.
a. Responsibility b. Unity of command c. Chain of command d. Authority (d; moderate; p. 237)
46. ________________ is the obligatio n or expectation to perform a d u ty . a. Responsibility b. Unity of command c. Chain of command d. Span of contro l (a; moderate; p. 237)
47. The theor y that a person should rep o rt to onl y one ma nager is called ____________. a. authorized line of responsibility b. unity of command c. responsibilit y factor d. chain of command (b; moderate; p. 237)
48. Which one of Fayo l s 14 principles of man agem e nt helps preserve the concept of a continuo us li ne of authority? a. unity of dem a nd b. unit y of command
c. dem and structure d. continuous de mand (b; moderate; p. 237)
49. The concept that defines the number of subordi nates that report to a manager and that indirectly specifies the numb er of levels of management in an or ganization is called _____________. a. authorized line of responsibility b. unity of command c. responsibilit y factor d. span of contro l (d; difficult; p. 238)
50. In organizations, the trend in recen t years has been toward _____________. a. narrower span of contro l b. increased cha i n of command c. the organization s structure being based on its financial position http://vustudents.ning.com 148
d. wider span of control (d; moderate; p. 238)
51. All other things being equa l, as the span of control grows wider or larger, organizational
design becomes mo re _____________. a. bureaucratic b. demo cratic c. effective d. efficient (d; difficult; p. 238)
52. ______________ is the num b er of subordinates that a manager manages and ultimately determ ines th e num ber of levels of managers in an organization. a. Responsibility b. Unity of command c. Chain of command d. Span of contro l (d; moderate; p. 238)
53. Trends in the past few years have centered on a __ __________ sp an of control to reduce costs and speed decision making. a. narrower b. wider c. deeper d. stable (b; modera te; p. 238)
54. The degree to which decision m aking is confined at a single point i n an organiza tion is
described as ____________. a. unity of command b. chain of command c. span of m anagem ent d. centralization (d; mo derate; p. 239)
55. In recent years, there has been a movement to make o rganizations m o r e flexible and responsive through _____________. a. centralization b. decentralization c. alternative organizational structure d. custo mer-bas ed structure (b; moderate; p. 239)
56. The degree to which jobs a r e standardized and guided by rules and procedures is called ______________. a. work specialization b. centralization c. decentralization d. formalization (d; difficult; p. 240)
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57. In an effort to make orga nizations mo re flexible and r esponsive to co mp etitive pressures, firm s have ad opted mo re _____ _______ decision making. a. centralized b. decentralized c. vertically inte grated d. stable (b; moderate; p. 239)
OR GANIZ A TIONAL DESI GN DECISI ONS
58. A(n) ____________ organi zation is rigi dl y contr o lled and efficient. a. organic b. horizontal c. learning d. mechanistic (d; moderate; p. 241)
59. A(n) ____________ organi zation is able to change rapidl y as needs require. a. organic b. horizontal c. vertical d. mechanistic
60. When managers standardize employ ee b ehavi or through rules and procedures, the jobs are becomi ng mo re _____ ________. a. diversified b. formalized c. vertical d. horizontal (b; difficult; p. 240)
61. In describing the relationship between st ructure and strategy , it can be said that _____________ . a. structure follows strategy b. strategy follows structure c. strategy and s t ructure are always handled equally d. strategy follows structur e in smaller organizations (a; moderate; p. 242)
62. In linki ng strategy and structure, mo st strategic frameworks tend to focus on ______________. a. the pursuit of meaningful and un ique in novation b. the pursuit of tightly contro lled costs c. minimi zing risk and maximizing profit opport unities by copying m arket leaders d. all of the above (d; difficult; p. 242)
63. As a ty pe of t echnolog y, _____________ , centers on large-batch production and requires moderate levels of co mp lexit y and so phistication. a. unit pr oducti on b. mass production c. process production http://vustudents.ning.com 150
d. service production (b; moderate; p. 242)
64. Organizations that work like efficient, well-oiled ma chines are described as ______________. a. organic b. mechanistic c. rational d. intuitive (b; moderate; p. 241)
65. Organizations that are highly flexible and adaptive ar e described as ______________. a. organic b. mechanistic
c. rational d. intuitive (a; moderate; p. 241)
66. Structure is related to the size of the organization, such that larger o r ganizations tend to have m o re ____________. a. specialization b. departmentalization c. centralization d. all of the above (d; mo derate; p. 242)
67. Structure is related to the size of the organization, such that larger organizations are mo re _____ ________. a. mechanistic b. organic c. structurally weak d. decentralized (a; moderate; p. 242)
68. In Joan Wood ward s study of the relationship between technolog y and structur e, the structure that was the mo st technically comp lex was ______ ________ . a. unit pr oducti on b. mass production c. process production
d. technological production (c; moderate; p. 242)
69. According to Woodward s studies, what type of production works best with a mechanistic st ructure? a. unit b. process c. product d. mass (d; moderate; p. 243)
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70. In studies of t h e structure of an organization to uncertainty in the en vironm ent, organizations that face higher uncertainty are mo re ____________. a. organic b. mechanistic c. technologically pure d. supportive of technological change (a; moderate; p. 243)
71. Global comp etition, accelerated product de velopment by com p etitors, and increased dem ands by c u stomers for better service have encouraged organizations to become mo re _____________. a. organic b. mechanistic c. technologically pure d. task oriented (a; mo derate; p. 243)
72. Which of the following wo uld likely be found in mechanistic organizations? a. wide span of control b. empowered e mploy ees c. decentralized responsibilit y d. standardized job specialties (d; difficult; p. 241)
73. In the early y ears of Apple Compute r s, its desire for high ly proficient and creative e mploy ees who operated with few work rules best exe m plified what type of organization? a. bureaucratic b. mechanistic c. volatile d. organic (d; difficult; p. 241)
74. Which ty pe o f environmen t is best suited for mechanistic organizations? a. dy nam i c b. manufacturing c. service d. stable (d; moderate; p. 243)
75. The appropriate structure f o r an organiz ation is based on four contingenc y variables: strategy, size, degree of environm ental uncertainty , an d _________________. a. technolog y b. history c. leadership d. intensit y of c o mp etition (a; easy; p. 241)
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76. Joan Woodward study of th e relationship between technology and structure is based upon her stud y of small manufacturing firms in _________________ . a. the northeastern United States b. the south of Wales
c. France d. southern En gl and (d; difficult; p. 242)
COMMON ORGA NIZATIONAL DESIGNS
77. Traditional organizational designs tend to be mo re mechanistic, and include _______________. a. si mp le, functional, and corporate structures b. si mp le, functional, and business unit structures c. functional, strategic, and business unit structures d. sim p le, functional, and divi sional structures. (d; moderate; p. 244)
78. A small business with low departmentali za tion, wide spans of control, centralized authority , and lim it ed formalizati on can be said to possess a ________________ structure. a. si mp le b. functional c. divisional d. matrix (a; easy; p. 244)
79. As the numbe r of em ploy ees in an organization grows, structure tends to becom e mo r e ______________.
a. specializ ed b. inform al c. centralized d. a and b (a; easy; p. 244)
80. When an organization assigns specialists to groups according to the projects they are working on , t h is is called _____ ___________. a. divisional structure b. functional stru cture c. product struct ure d. matrix structure (d; difficult; p. 244)
81. A simp le organizational structure is characterized by ______________. a. high departmentalization b. wide spans of control c. decentralized authority d. high levels of formalization (b; m o derate; p. 244)
82. Divisional structure allows grouping of diffe rent grou ps of jobs th at are related b y _______________. http://vustudents.ning.com 153
a. the prod uct p r oduced b. the service offered c. the cost advantage within a niche mark et d. a and b (d; difficult; p. 244)
83. Matrix structure mi xes cha r acteristics of functional departmentalization and _______________. a. product departmentalizatio n b. process depart mentalizatio n c. a dual chain of command d. a narrow span of contro l (a; difficult; pp. 245-246)
84. Matrix structure violates a key element of organizatio nal design called ___________________. a. unity of command b. chain of command c. span of m anagem ent d. decentralization (a; moderate; pp. 245-246)
85. A __________________ or ganization is a small core organization t h at outsources major business functions such as manufacturing, allowing the firm to concentrate on its core co mp etencie s . a. network b. virtual c. modular d. learning (a; moderate; p. 248)
86. A ______________ organi zation consists of a small core of full-ti me employ ees and tem porarily h i res outside specialists to work on em ergent op portunities. a. network b. virtual c. modular d. learning (b; mo derate; p. 247)
87. A learning organization has developed it s ____ ___________. a. educational department to keep employ ees trained b. capacity to adapt and change c. barriers to entry of its mark ets d. a sustainable co mp etitive advantage that is easy to ma intain (b; difficult; p. 248)
88. A ________________ orga nization uses outside suppl iers to provide product co mponents which are then assem b led i n to final pr oducts. a. network b. virtual c. modular http://vustudents.ning.com 154
d. learning (c; mo derate; p. 248)
89. A _____________ design i s not limited to horizo n tal, vertical, or external boundary imposed by a conventional structure. a. learning orga nization s b. threatened organization s c. functional d. boundary less organization s (d; difficult; p. 247)
90. What type of organization assigns spec ialis ts from different functional departments to work on one or m o re projects led by a p r oject manager? a. classical b. contemporary
c. matrix d. evolutionary (c; easy; p. 246)
91. An online wine retailer that sells and ships hundred s of wines to custo mers all over th e world with a payr oll of six e mploy ees, most likely has what ki nd of organizational structure? a. bureaucratic b. sim p le c. functional d. divisional (b; difficult; p. 244)
92. What ty pe of organizational structure is made up of autonomous, self-contained units? a. bureaucratic b. simp le c. functional d. divisional (d; moderate; p. 244)
93. In what t y pe of organizatio nal structure is e mpower ment m o st cruci al? a. bureaucratic b. si mp le c. functional d. te am-bas ed
(d; easy; p. 245)
94. The matrix approach violates what class i cal principle? a. unit y of command b. decentralization c. custo mer focu s d. linear lines of responsibilit y (a; moderate; p. 246)
95. The strength of a _____________ struct ure is based on results of managers, but it has a weakness because duplication can occur easily within the organization a. si mp le b. functional http://vustudents.ning.com 155
http://vustudents.ning.com c. divisional d. matrix (c; difficult; p. 244)
156
96. ____________ structure is an advanced version of the matrix organization, where e mploy ees continuously w o rk on assignments that ar e oriented to co mp letion of a task. a. Weighted
b. Functional c. Conservative d. Project (d; difficult; p. 247)
97. Some organizational theori sts go so far as to say t h at an organization s ability to __________ may be the only sustainable source of comp etitive advantage. a. learn b. apply what they learn c. change d. a and b (d; mo derate; p. 248)
98. According to the textbook, organizational learning can t take place without ____________ . a. mo tivation b. goals c. inform ation d. structure (c; moderate; p. 249)
SCENARIO QUESTIONS For each of the following c hoose the answer that most completely a n swers the question.
DEFININ G OR GANI ZATIONAL STRUCT URE
Eric the Redd (Scenario)
Eric Redd graduated from college and was hired by a c o rporation that manufactured parts for the autom o tive industr y . T he em ploy ees on the assembl y line seeme d bored, and their mo tivation was low. Eric s e mploy er de cided to try to reorganize to increase pro ductivity . During his career, Eric will see his job change from a n engineer to a mo re co mp l ex job assign ment.
99. The jobs of assemb ly -line employ ees are to be changed to allow more tasks to be done by individu al workers. This is a reduction in _ _____________. a. work specialization b. departmentalization c. chain of command d. centralization (a; difficult; p. 235)
100. Eric majored in engineering and reall y enjoyed th e work assignment. The reorganization changed some of his work assign ments t o include working on a team with production workers and marketing specialists designing the newest products the com p any will offer. This could be described as a(n) ________________. a. alternative wo rk assignm e n t
http://vustudents.ning.com b. care er degrading assignme n t c. centralized wo rk assignm e n t d. cross-functional team assignm ent (d; mo derate; p. 237)
157
101. Eric is offered a chance to help direct the efforts of some em ploy ees assigned to his work group. This is a chance of Eric to experience _______________. a. functional stru cture b. divisional stru cture c. responsibility d. authority (d; moderate; p. 237)
102. Eric sees this new assign ment as an oblig ation or expectation for hi m to perform at a new level of _______________. a. functional stru cture b. divisional stru cture c. responsibility d. authority (d; moderate; p. 237)
103. Eric s job continues to cha nge over the y ears, and ev entually, his department evolves to the point that he is in advan ced structure where he continually work s on projects. This structure is known as ___________ stru cture.
a. si mp le b. functional c. divisional d. project (d; easy; p. 247)
General Hospital (Scenario)
Michelle is a registered nur se in charge o f a ne w unit at her hospital. She would like to have a mo re laid-back approach in dealing with her new staff, but the hospital demands that there be strict hierar chical levels and that all decisions mu st be signed off by Michelle. Someti mes thi s drives Michelle nuts the constant filling out of for ms, and so forth. She also feels that the num erous lev els of hierarc hy are unnecessary a nd place barriers between herself and her staff. She isn t s ure why things ha ve to be s o or ganized and is thinking about speaki ng with her boss to attempt chang ing her un it to have more flexibility and fewer rules.
104. Michelle is very concerned about the form al framework by whi ch job tasks within her nursing unit are divided, grouped, and coordina ted within her unit. This framework is known as the unit s __ ____________. a. formal organizational chart b. organizational structure c. staff d. span of contro l (b; moderate; p. 234)
105. Michelle s unit specializes in cardiology case s. Dividing work units up in such a manner is mo st representative of __ ___________ departmentalization. a. functional b. product c. process d. customer
106. Michelle is required to sign off on all d ecisions, suggesting the hospital has what kind o f decision-mak i ng auth ority? a. centralized b. formal c. autocratic d. strict (a; moderate; p. 239)
107. Michelle has noticed that ev eryone is very concerned about the li ne of authority within the organization. The line of authority withi n the organization is also called a(n) ______________. a. responsibility b. chain of command c. span of control
d. organizational strategy (b; easy; p. 237)
108. Michelle was asked to represent her cardiac unit as part of a Total Quality Manageme nt (TQM) initiative that is aimed at improving the overa ll quality of care at the hospital. Other departm e nts, such as Ca rdiology and ER, also have representatives on this team. The TQM team exe mplifies ________________. a. project managem ent b. a cross functional tea m c. process integration d. customer dep art mentali zati on (b; easy; p. 237)
121. The original entrepreneurial venture consisted onl y of Mr. Abdul and a few em p l oyees. It was an inform al organization, and everyone reported to Mr. Abd u l. This is best described as a ________ structure. a. si mp le b. functional c. divisional d. matrix (a; easy; p. 244)
122. A sharp rise in oil prices helped PAOC s business expand. Abdul concluded tha t it was impractical and inefficient for all decisions to cont in ue flowing through his offi ce. He granted his key subordinat es the authority a nd responsibility to ma nage others within
their areas of specialty . This organizati onal structure is best described as a ____________ organizatio nal structure. a. si mp le b. functional c. divisional d. matrix (b; moderate; p. 244)
158
123. Paul Abdul decided to purchase an oil drilling supply com p any , located in a new countr y . Th e purchase of this comp any was cl assified as a relat ed diversification, but distance and the new product line suggested that this newly purchas ed organization continue to be operated as a separat e co mp an y . In be ginning a ne w phase in the history of Paul Abdul Oil Corporation, a _ ________ structur e should be implemented to allow the comp any to continue to grow. a. si mp le b. functional c. divisional d. matrix (c; difficult; p. 244)
124. As PAOC continues to grow, a highl y tr ained group o f managers and analy sts h as
developed at corporate headquarters. Th is group is hi ghly adapti ve in its structure. Memb ers of this group do not have standa rdized jobs, but are emp o wered to handle diverse job activities and problems. This group of emp l oyees is said to have a(n) ___________ structure. a. si mp le b. divisional c. functional d. organic (d; difficult; p. 243)
125. To deal with th e workload in an e ffective manner, PAOC s executive management group assigns specialists fr om the differ ent functional departments to work on one or mo re work groups that are led b y project managers. This pop ular contem porary design is called a ___________ st ructure. a. matrix b. divisional c. functional d. organic (a; m o derate; P. 246)
126. Mr. Abdul realizes that his comp any is taki ng on a life of its own and he wants t o allow people from a ll levels to work together in teams. This view grows to include employ ees working actively with external agencies. This organizational design does not have a predefined structure and is referred to as a (n) ___ ______. a. learning orga nization
b. threatened organization c. functional stru cture d. boundary less organization (d; difficult; P. 247)
127. Twenty y ears after founding PAOC, Abdul decides h e is approaching retirement. He wants PAOC to develop the capacity to ad apt itself and change because e ach memb er will take an active role in id entif y i ng and resolving wo rk-related issues. Abdul wants the firm to become a ________ ______. a. learning orga nization b. threatened organization c. functional stru cture d. boundary less organization (a; m o derate; pp. 248-249 )
128. Several y ears after the retirement of Mr . Abdul, m anagem ent at PAOC decided to sell off its oil exploration and drilling supply holdi ngs, and instead focus on the m o re http://vustudents.ning.com 159
profitable dist ribution end of the busines s. In conju n ction with t h is decision, management decided to outsource mo st of its noncore functions, su ch as accounting, payroll, and human resources. These mo ves are consistent with what ty pe of contem porary organization al design?
a. a virtual organization b. a network org anization c. a m odular organization d. a m atrix organization (b; difficult; p. 248)
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HISTORICAL BACKGROUND OF MANAGEMENT

SCIENTIFI C MANA GEMENT

c. supply and de mand d. quality control (b; moderate; p. 28)

The primary issue that aroused Ta y l or to create a mo re s cie ntific approach to

management was ______________.

GENERAL ADMI NIST RATIVE THEORISTS

49. Bureaucracy defined as a form of organization charact erized by

http://vustudents.ning.com d. all of th e above

(d; moderate; p. 30)

QUANTITATIVE APPROACH T O MANA GEMENT

__ ____________ is a technique t h at managers use to improve resource allocation

decisions. a. Li near programming

(a; moderate; p. 32)

http://vustudents.ning.com (c; modera te; p. 32)

TOWARD UNDERSTANDI NG ORGANI ZATIONAL BEHAVIOR

(b; difficult; p. 33)

(d; difficult; p. 33)

d. Security is relatively unimportant. (a; moderate; p. 34)

CURRENT TRENDS AND ISSU ES

c. divorce rate d. birthrate http://vustudents.ning.com (b; moderate; p. 39) 24

d. Technologically im paired (b; easy; p. 40)

b. local area net work c. intranet d. hy p ern et (c; moderate; p. 41)

d. e mpower ment of em ploy ees (a; moderate; p. 43)

92. All of the following are characteristics of a learning organization except

c. ability t o learn; knowledge and expertise. d. control others.

(d; difficult; p. 42)