who wrote that leadership and culture are two sides of the same coin? E 开头的
1. According to Chester I. Barnard's classic definition, an
organization is a ____.
system of consciously
coordinated activities or
forces of two or more
people
2. Adhocracy external focus. Values
flexibility rather than
stability and control
3. _______ are organizations of employees formed to protect and
advance their members' interests by bargaining with
management over job-related issues.
Labor unions
4. A change that is made in response to arising problems or
opportunities is called __________.
reactive change
5. A choice made from among available alternatives is a ____. decision
6. The clan culture has a(n) _____. internal focus and
values flexibility
7. A computer-based information system that provides a flexible
tool for analysis and helps managers focus on the future is
known as a(n) _____.
decision support system
8. The creation of products, services, or technologies that modify
those that already exist is called ______ innovation.
incremental
9. A defensive strategy is also known as a(n) _____. retrenchment strategy
10. The Delphi technique is a group process that uses physically
dispersed experts who fill out questionnaires to ____.
anonymously generate
ideas
11. Division of labor is also known as ____. work specialization
12. The ______________ enforce(s) procedures so employees may
vote to have an union and for collective bargaining.
National Labor
Relations Board
13. ________ entails job posting, placing information about job
vacancies and qualifications in places where employees can
see them such as on bulletin boards or the company's intranet.
Internal recruiting
14. The Equal Employment Opportunity Commission was
established by the _________________ Act.
Title VII of the Civil
Rights
15. A forecast is a(n) _____. projection for the future
16. Hierarchy internal focus. Values
stability and control over
flexibility
17. A hierarchy of authority or chain of command a control mechanism for
making sure the right
people do the right
things at the right time
18. The idea that proposes that the ability of decision makers to be bounded rationality
rational is limited by numerous constraints, such as
complexity, time, cognitive capacity, values, skills, habits, and
unconscious reflexes, is known as _____.
19. Important decisions are made by middle-level and supervisory-
level managers with ____.
decentralized authority
20. In the BCG matrix, companies that have high growth and high
market share, and are definite keepers are ____.
stars
21. Introducing a practice that is new to the industry is called a(n)
______ change.
radically innovative
22. ____________ is a change that represents the introduction of a
new practice to an organization but one that is not new to the
industry.
Innovative change
23. ________ is an emotional/behavioral response to real or
imagined threats to an established work routine.
Resistance to change
24. ______________ is the economic or productive potential of
employee knowledge and actions.
Human capital
25. _______ is the process by which a company compares its
performance with that of high-performing organizations.
Benchmarking
26. _____________ is the set of techniques used for implementing
planned change to make people and organizations more
effective.
Organizational
development
27. Lewin's change model consists of __________. three stages:
unfreezing, changing,
and refreezing
28. Manner of dress, awards, myths and stories told about the
company, and rituals and ceremonies are ____.
observable artifacts of
organizational culture
29. Market culture strong external focus.
Values stability and
control rather than
flexibility
30. ______ means that anyone can be dismissed at any time for
any reason at all, or for no reason.
Employment at will
31. The model of decision making that explains how managers
should make decisions, assuming managers will make logical
decisions that will be the optimum in furthering the
organization's best interests, is known as the ____.
rational decision-making
model
32. Organizational design is concerned with an organization
developing ____.
optimal structures of
accountability and
responsibility to execute
its strategies
33. Over the course of 40 years, Sal grew his company to six
package shipping stores. With his retirement approaching and
the increased competition, he decided to reduce the number of
locations to two. Sal's reduction of effort represents a _____.
defensive strategy
34. Porter's competitive strategies of cost-leadership and
differentiation focus on ____ markets, and the cost-focus and
wide; narrow
focused-differentiation strategies focus on ____ markets.
35. The predisposition in which people's subjective confidence in
their decision making is greater than their objective accuracy
is ____.
overconfidence bias
36. The prospect theory suggests that ____. decision makers find the
notion of an actual loss
more painful than giving
up the possibility of a
gain
37. The rational model of decision making is also called the ____
model.
classical
38. Regarding the results of a SWOT analysis,
organizational opportunities are ____.
environmental factors that the organization
may exploit for a competitive advantage
39. Rites and rituals are ____. the activities and ceremonies that celebrate
important occasions and accomplishments for
an organization
40. Satisficing is the tendency of ____. a group to settle on a decision that is "good
enough"
41. Strategic control includes ____. monitoring the execution of strategy and
making adjustments, if necessary
42. Strategy formulation is the process of
_____.
choosing among different strategies and
altering them to best fit the organization
43. The two co-founders of Network Appliance,
a data-storage firm in Sunnyvale,
California, were feuding with each other
because one founder couldn't stick to his
decisions, which drove the other founder
crazy. A(n) ____________ began working
with the warring executives in separate
sessions to solve the problem.
organizational behavior specialist
44. The two kinds of spans of control are
_____.
narrow and wide
45. When organizations endeavor to keep their
costs, and hence prices, of their products
or services below those of competitors and
to target a wide market this is a _____
strategy.
cost-leadership
46. When people seek information to support
their point of view and discount data that
do not, this is ______ bias.
confirmation
47. Which of the following is not a type of
compensation?
promotions
48. Which of the following is not one of Scott
Berkun's seeds of innovation for
organizations?
philanthropy
49. Which of the following is not one of the
five steps in the training process?
attendance
50. Which of the following is not one of the
soft skills employers often find lacking in
many Millennial applicants?
familiarity with social media
51. Which of the following is not part of the
strategic human resource management
process?
negotiate employment contract
52. Who are our customers? What are our
major products or services? In what
geographic areas do we compete? These
are all questions that are answered in a
good _____.
mission statement
53. With a hollow structure, the organization
____.
has a central core of key functions and
outsources others to vendors who are less
expensive or faster
1. 3 Levels of Organizational Culture (1) observable artifacts, (2) espoused values,
and (3) basic assumptions. Each level varies in
terms of outward visibility and resistance to
change, and each level influences another level.
2. 3 Perspectives Cultures for Enhancing
Economic Performance
(1) strength, (2) fit, and (3) adaptive.
3. 3 types of organizational design traditional design (including simple, functional,
divisional, and matrix structures), horizontal
designs, and boundaryless designs (hollow,
modular, and virtual structures).
4. 3 types of structures in boundaryless Three types of structures in this class of
organizational design are hollow, modular, and
virtual structures.
5. 4 Common Elements of Organizations (1) common purpose, (2) coordinated effort, (3)
division of labor, and (4) hierarchy of authority
6. 4 Factors to Be Considered in Designing
an Organization's Structure
Environment—mechanistic versus organic
Environment—differentiation versus integration
Life cycle
Link between strategy and structure
7. 4 FUNCTIONS OF ORGANIZATIONAL
CULTURE
1. It gives members an organizational identity
2. it facilitates collective commitment
3. it promotes social-system stability
4. it shapes behavior by helping employees
make sense of their sourroundings
8. 4 Types of Organizational Culture competing values framework
organizational cultures can be classified into
four types: (1) clan, (2) adhocracy, (3) market,
and (4) hierarch
9. According to Chester I. Barnard's classic
definition, an organization is a system of
consciously coordinated activities or
organization is a system of consciously
coordinated activities or forces of two or more
people
forces of two or more people
10. Accountability managers must report and justify work results to
the managers above them. Being accountable
means you have the responsibility for performing
assigned tasks.
11. adaptive perspective assumes that the most effective cultures help
organizations anticipate and adapt to
environmental changes.
12. adhocracy culture has an external focus and values flexibility. This
type of culture attempts to create innovative
products by being adaptable, creative, and quick
to respond to changes
13. Authority means accountability refers to the rights inherent in a managerial
position to make decisions, give orders, and
utilize resources. (Authority is distinguished from
power
14. Barnard's According to Chester I. Barnard's classic
definition, an organization is a system of
consciously coordinated activities or forces of
two or more people
15. Basic assumptions (LEVEL 3) which are not observable, represent the core
beliefs that employees have about their
organization—those that are taken for granted
and, as a result, are difficult to change.
16. boundaryless organization is a fluid, highly adaptive organization whose
members, linked by information technology,
come together to collaborate on common tasks.
The collaborators may include not only
coworkers but also suppliers, customers, and
even competitors. This means that the form of
the business is ever-changing, and business
relationships are informal
17. Burns & Stalker 252 mechanistic organization, as opposed to an
organic organization
18. centralized authority important decisions are made by higher-level
managers. Very small companies tend to be the
most centralized, although nearly all
organizations have at least some authority
concentrated at the top of the hierarchy.
19. clan culture has an internal focus and values flexibility rather
than stability and control. Like a family-type
organization, it encourages collaboration among
employees,
20. collaborators may include not only coworkers but also
suppliers, customers, and even competitors.
21. common purpose unifies employees or members and gives
everyone an understanding of the organization's
reason for being.
22. competing values framework 229 organizational cultures can be classified into four
types: (1) clan, (2) adhocracy, (3) market, and (4)
hierarch
23. consistency A major point is that there must be consistency
among all these elements.
VISISON-STRATEGY-CULTURE-STRUCTURE
& INTERNAL PRACTICES-COLLECTIVE
ATTITUDES & BEHAVIORS-ACHIEVEMENT OF
GOALS
24. contingency design the process of fitting the organization to its
environment
25. coordinated effort the coordination of individual efforts into a group
or organizationwide effort.
26. culture The culture consists not only of the slightly quirky
personalities you encounter but also all of an
organization's normal way of doing business
27. Customer divisions tend to group activities around common
customers or clients. Examples: Ford Motor Co.
has separate divisions for passenger car dealers,
for large trucking customers, and for farm
products customers
28. decentralized authority 243 important decisions are made by middle-level
and supervisory-level managers. Here, obviously,
power has been delegated throughout the
organization. Among the companies using
decentralized authority are General Motors and
Harley-Davidson.
29. Delegation is the process of assigning managerial authority
and responsibility to managers and employees
lower in the hierarchy.
30. divisional structure people with diverse occupational specialties are
put together in formal groups by similar products
or services, customers or clients, or geographic
regions. (See Figure 8.8
31. Division of labor also known as work specialization, is the
arrangement of having discrete parts of a task
done by different people.
32. Employees Learn Culture Symbols, Stories, Heroes, & Rites & Rituals
33. enacted values (LEVEL 2) which represent the values and norms actually
exhibited in the organization.
34. Espoused values (LEVEL 2) are the explicitly stated values and norms
preferred by an organization, as may be put forth
by the firm's founder or top managers.
35. fit perspective assumes that an organization's culture must align, or fit, with its business or
strategic context. A "correct" fit is expected to foster higher financial
performance.
36. functional
structure 245
people with similar occupational specialties are put together in formal
groups. This is a quite commonplace structure, seen in all kinds of
organizations, for-profit and nonprofit
37. Geographic
divisions
group activities around defined regional locations. Example: This
arrangement is frequently used by government agencies. The Federal
Reserve Bank, for instance, has 12 separate districts around the United
States.
38. hero is a person whose accomplishments embody the values of the organization.
39. hierarchy of
authority-or
chain of
command
in which an employee should report to no more than one manager in order
to avoid conflicting priorities and demands.
40. hollow
structure
often called the network structure, the organization has a central core of
key functions and outsources other functions to vendors who can do them
cheaper or faster. (See Figure 8.11.)
41. horizontal
design
teams or workgroups, either temporary or permanent, are used to improve
collaboration and work on shared tasks by breaking down internal
boundaries
42. Horizontal
Specialization
Who Specializes in What Work
43. Line managers have authority to make decisions and usually have people reporting to
them. Examples: the president, the vice presidents, the director of
personnel, and the head of accounting. Line positions are indicated on the
organization chart by a solid line (usually a vertical line).
44. market culture has an internal focus and values stability and control over flexibility.
Companies with this kind of culture are apt to have a formalized, structured
work environment aimed at achieving effectiveness
45. matrix structure an organization combines functional and divisional chains of command in a
grid so that there are two command structures—vertical and horizontal. The
functional structure usually doesn't change—it is the organization's normal
departments or divisions, such as Finance, Marketing, Production, and
Research & Development.
46. mechanistic
organization
(McDonalds)
authority is centralized, tasks and rules are clearly specified, and
employees are closely supervised.
47. Narrow Span of
Control
This means a manager has a limited number of people reporting—three
vice presidents reporting to a president, for example, instead of nine vice
presidents.
48. observable
artifacts (LEVEL
1)
physical manifestations such as manner of dress, awards, myths and
stories about the company, rituals and ceremonies, and decorations, as
well as visible behavior exhibited by managers and employees
49. organic
organization
(Peters and
Waterman)loose
authority is decentralized, there are fewer rules and procedures, and
networks of employees are encouraged to cooperate and respond quickly
to unexpected tasks
structure
50. organizational
culture/social
glue
sometimes called corporate culture, is a system of shared beliefs and
values that develops within an organization and guides the behavior of its
members.
51. Organizational
design
is concerned with designing the optimal structures of accountability and
responsibility that an organization uses to execute its strategies. We may
categorize organizational designs as three types: (1) traditional designs,
(2) horizontal designs, and (3) designs that open boundaries between
organizations
52. Organizational
structure
is a formal system of task and reporting relationships that coordinates and
motivate an organization's members so that they can work together to
achieve Page 229the organization's goals.
53. organization
chart 239
is a box-and-lines illustration showing the formal lines of authority and the
organization's official positions or work specializations.
54. Process of
Culture
Change 237
1.Formal Statements 1) respect for the individual, (2) service to customers,
and (3) striving for excellence
2.Slogans & Sayings
3. Stories, Legends, & Myth
4. Leader Reactions to Crises
5. Role Modeling, Training, & Coaching
6. Physical Design
7. Rewards, Titles, Promotions, & Bonuse
8. Organizational Goals & Performance Criteria
9. Measurable & Controllable Activities
10. Organizational Structure
11. Organizational Systems & Procedures
55. Product
divisions
group activities around similar products or services. Examples: The media
giant Time Warner
56. Reardon author of The Secret Handshake and It's All Politics
Although hard work and talent can take you a long way, "there is a point in
everyone's career where politics becomes more important,
57. Responsibility is the obligation you have to perform the tasks assigned to you.
58. Rites and
rituals
are the activities and ceremonies, planned and unplanned, that celebrate
important occasions and accomplishments in the organization's life. Military
units and sports teams have long known the value of ceremonies handing
out decorations and awards, but many companies have rites and rituals as
well.
59. Schein sometimes called corporate culture, is a system of shared beliefs and values
that develops within an organization and guides the behavior of its members
60. Schein 4
Common
Elements of
Organizations
4 Common Elements of Organizations
(1) common purpose, (2) coordinated effort, (3) division of labor, and (4)
hierarchy of authority
61. simple
structure 245
has authority centralized in a single person, a flat hierarchy, few rules, and
low work specialization.
62. span of refers to the number of people reporting directly to a given manager.52
control, or
span of
management
There are two kinds of spans of control, narrow (or tall) and wide (or flat).
63. Staff
personnel
have authority functions; they provide advice, recommendations, and
research to line managers. Examples: specialists such as legal counsels and
special advisers for mergers and acquisitions or strategic planning. Staff
positions are indicated on the organization chart by a dotted line (usually a
horizontal line).
64. story is a narrative based on true events, which is repeated—and sometimes
embellished upon—to emphasize a particular value. Stories are oral histories
that are told and retold by members about incidents in the organization's
history.
65. strategy the large-scale action plans that reflect the organization's vision and are
used to set the direction for the organization. To implement a particular
strategy, managers must determine the right kind of (1) organizational
culture and (2) organizational structure
66. strength
perspective
assumes that the strength of a corporate culture is related to a firm's long-
term financial performance. A culture is said to be "strong" when employees
adhere to the organization's values because they believe in its purpose.
67. symbol is an object, act, quality, or event that conveys meaning to others. In an
organization, symbols convey its most important values.
68. Three Most
Common
Elements of
Organizations
(5) span of control, (6) authority, responsibility, and delegation, and (7)
centralization
69. Three Types of
Organization
For-profit organizations. These are formed to make money, or profits, by
offering products or services.
Nonprofit organizations. These are formed to offer services to some clients,
not to make a profit (examples: hospitals, colleges).
Mutual-benefit organizations. These are voluntary collectives whose purpose
is to advance members' interests (examples: unions, trade associations).
70. Vertical
Hierarchy of
Authority
Who Reports to Whom
71. virtual
organization
an organization whose members are geographically apart, usually working
with e-mail, collaborative computing, and other computer connections,
72. virtual structure a company outside a company that is created
"specifically to respond to an exceptional market
opportunity that is often temporary
73. Wide Span of Control This means a manager has several people
reporting—a first-line supervisor may have 40 or
more subordinates, if little hands-on supervision
is required, as is the case in some assembly-line
workplaces. An organization is said to be flat
when there are only a few levels with wide spans
of control.
1. Accountability managers must report/justify work results to
managers above them
2. Adaptive perspective most effective cultures help org anticipate
and adapt to environmental changes
3. Adhocracy culture external focus, flexibility
4. Authority Authority: rights manager has to make
decisions, give orders, use resources
Respon
5. Basic assumptions not observable, represent core beliefs that
employees have about org
6. Birth stage non-bureaucratic, creation
7. Centralized authority important decisions made by higher-level
managers
8. Chester I. Barnard classic definition or organization
9. Clan culture internal focus, flexibility
10. Common purpose unifies and gives everyone understanding
of org reason for being
11. Contingency design process of fitting org to its environment
12. Customer divisions group activities around common customers
or clients
13. Decentralized authority important decisions made by middle-level &
supervisory-level managers
14. Delegation assigning managerial
authority/responsibility to
managers/employees lower in hierarchy
15. Differentiation tendency of parts of an org to disperse and
fragment
16. Divisional structure people with diverse occupational specs put
together in formal groups by similar
products/services, customers/clients,
graphic regions
17. Division of labor (work specialization) discrete parts of a
task done by different people
18. Edgar Schein organizational culture
proposed four common elements of org
19. Enacted values represent values/normals normally
exhibited in an organization
20. Espoused values explicitly stated values/norms preferred by
an org
21. Fit perspective assumes org culture must align or fit with
its business/strategic context
22. Four common elements of orgs 1. common purpose
2. coordinated effort
3. division of labor
4. hierarchy of authority
23. Functional structure people with similar occupational
specs are put together in formal
groups
24. Geographic divisions group activities around defined
regional locations
25. Hero accomplishments embody the value
of org
26. Hierarchy culture internal focus, stability & control
27. Hierarchy of authority (chain of command) control
mechanism for making sure the right
people do the right things at the right
time
28. Hollow structure basic core remains small, keeping
costs down
29. Horizontal design teams or groups, used to improve
collab and work on shared tasks by
breaking down internal boundaries
30. Horizontal specialization different jobs/work specialization
who specializes in what work
31. Integration tendency of the parts of an org to
draw together to achieve a common
purpose
32. Line managers authority to make decisions, usually
have people reporting to them
33. Market culture external focus, stability & control
34. Matrix structure org combines functional and
divisional chains of command in a
grid so that there are two command
structures - vertical & horizontal
35. Maturity stage very bureaucratic, large, mechanistic
36. Mechanistic organization centralized hierarchy, many rules &
procedures, specialized tasks,
formalized communication, few
teams/task forces, narrow span of
control, taller structures (rigidity
37. Midlife stage bureaucratic, growth into stability
38. Modular structure assembles product chunks/module
provided by outside contractors
39. Observable artifacts Physical manifestations. Dress,
awards, myths, stories,
rituals/ceremonies, decor, visible
behavior
40. Organic organization decentralized hierarchy, few rules
procedures, shared tasks, informal
communication, many teams/task
forces, wider span of control, flatter
structures (looseness, flexibility)
41. Organization system of consciously coordinated
activities/forces of two or more people
42. Organizational culture (corporate culture) system of shared
beliefs & values that develop within an
org and guides behavior of members
43. Organizational design concerned with designing optimal
structures of accountability and
responsibility that an org uses to
execute its strategies
44. Organizational life cycle birth, youth, midlife, maturity
45. Organizational structure formal system of task/reporting
relationships that coordinate & motivate
an org members so that they can work
together to achieve org goals
46. Organization chart illustration with formal lines of authority,
positions and work specs
47. Product divisions group activities around similar
products/services
48. Responsibility obligation you have to perform tasks
assigned to you
49. Rites/rituals activities and ceremonies, planned and
unplanned that celebrate important
occasions and accomplishments in org's
life
50. Simple structure authority centralized in a single person,
flat hierarchy, few rules, low work spec
51. Span of control (span of management) # of people
reporting directly to manager
52. Staff personnel have authority functions, provide advice,
recommendations & research to line
managers
53. Story narrative based on true event, repeated,
sometimes embellished to emphasize a
particular value
54. Strength assumes strength of corporate culture
related to firm's long-term financial
performance
55. Symbol object, act, quality, event that conveys
meaning to others
56. Unity of command employees should report to no more
than one manager
57. Vertical hierarchy chain of command, communication
network, who reports to who
58. Virtual organization members are geographically apart,
usually working with email, collab
computing & other cpu connections
59. Virtual structure a company outside a company that is created "specifically to respond to
an exceptional market opportunity that is often temporary"
60. What are 11 ways
to process culture
change?
1. formal statements
2. slogans & sayings
3. stories, legends, myths
4. leader reactions to crises
5. role modeling, coaching, training
6. physical design
7. rewards, titles, promotions, bonuses
8. org goals & performance criteria
9. measurable/controllable activities
10. org structure
11. org systems/procedures
61. What are four
factors to be
considered in
designing an
organization's
structure?
Environment - mechanistic v. organic
Environment - differentiation v. integration
life cycle
link between strategy and culture
62. What are the four
functions of org
culture?
Gives members org identity
Facilitates collective commitment
Promotes social-system stability
Shapes behaviors by making sense of surroundings
63. What are the four
types of org
culture?
Clan, adhocracy, market, hierarchy
64. what are the three
common elements
of orgs?
Span of authority
authority, responsibility, delegation
centralization v. decentralization of authority
65. What are the three
levels of org
culture?
1. Observable artifacts
2. Espoused values
3. Basic assumptions
66. What are the three
types of orgs?
for profit
nonprofit
mutual-benefit org
67. What are three
perspectives?
1. strength
2. fit
3. adaptive
68. What are two
kinds of
information do
org harts reveal
about org
structure?
Vertical hierarchy of authority
horizontal spec
69. What four ways is
culture
transmitted to
employees?
Symbols
Stories
Heroes
Rites/rituals
1. 3 effective
reactions
o Importance
o Credibility
o Urgency
2. 360- Degree
Assessment
Appraisal by Everybody
3. 1935 Wagner Act National Labor Relations Board; Enforces procedures whereby
employees may vote to have a union and for collective bargaining
4. 1938 Fair Labor
Standards Act
established minimum living standards for workers engaged in interstate
commerce, including provision of a federal minimum wage
5. 1947 Taft-Hartley
Act
allows President to prevent or end a strike that threatens national
security
6. 1964 Title VII Equal Employment Opportunity (EEO) Commission: prohibits
discrimination based on race, color, religion, sex, or national origin in
organizations of 15 or more employees.
7. 1970 Occupational
Safety and Health
Act (OSHA):
requires organizations to provide employees with nonhazardous
working conditions
8. Action plan defines the course of action needed to achieve the stated goal
9. Adhocracy Culture External focus and values flexibility ; W.L Gore, Start Up companies
10. Advantages of
group making
decisions
o Greater pool of knowledge
o Different perspectives
o Intellectual stimulation
o Better understanding of decision rationale
o Deeper commitment to the decision
11. Analytical High tolerance for ambiguity, Tendency to overanalyze the situation,
Information and alternatives, Careful decision makers who take longer
to make decisions, Respond well to new or uncertain situations
12. Analyzers let other organizations take the risks of product development &
marketing and then imitate what seems to work best
13. Anchoring &
Adjustment Bias
Tendency to make decisions based on an initial figure
14. Basic Assumptions represent the core values of an organization's culture
o Not observable
15. BCG Matrix a means of evaluating strategic business units on the basis of (1) their
business growth rates and (2) their share of the market
16. Behavioral Most people oriented, Work well with others, Supportive, warm, Avoid
conflict, Concerned about others, Hard time saying no
17. Benefits of
Planning
helps, check on your progress, coordinate activities , think ahead , cope
with uncertainty
18. Box and lines illustration showing the formal lines of authority and the organization's
official positions or work specializations
19. Business plan a document that outlines a proposed firm's goals, the strategy
20. Centralized
Authority
important decisions are made by higher-level managers
21. Chauffer Driven predetermined questions answered by electronic pads
22. Clan Culture Internal focus and values flexibility rather than stability and control;
Southwest Air
23. Common Elements
of Organizations:
Four Proposed by
Edgar Schein
1) Common purpose
2) Coordinated Effort
3) Division of Labor/work specialization
4) Hierarchy of authority/chain of command
24. Conceptual High tolerance for ambiguity, Tend to focus on people or social aspects
of a work situation, Broad perspective to solving problems, Consider
many options, Adopt a long-term perspective and rely on intuition and
discussions with others, Take risks and are good at finding creative
solutions, Could be indecisive
25. Conglomerate large companies would do business in different, quite unrelated areas
26. Consensus occurs when members are able to express their opinions and reach
agreement to support the final decision
27. Contingency
Approach Factors
Environment-mechanic vs. organic, Environment- differentiation vs.
integration, Size, Technology, Life Cycle
28. Contingency
Design
the process of fitting the organization to its environment
29. Contingency
planning (or
scenario
analysis)
the creation of alternative hypothetical but equally likely future conditions
30. Continuous
Process
Routine, Machines do everything
31. Culture is the "social glue" that binds members of the organization together.
32. Customer A savings and loan is structured with divisions for making consumer loans,
mortgage loans, business loans, and agricultural loans. This is an
example of which type of division
33. Decentralized
Authority
important decisions are made by middle-level and supervisory-level
managers
34. Deciding to
Decide
a manager agrees that he or she must decide what to do about a problem
or opportunity and take effective decision-making steps: Importance,
Credibility, and Urgency
35. Decision Making
Style
reflects the combination of how an individual perceives and responds to
information
36. Defenders expert at producing and selling narrowly defined products/services
37. Defensive
Avoidance
A manager cant find a good solution and follows by: procrastinating,
passing the buck, denying the risk
38. Delphi Technique Characteristics: experts are physically dispersed, anonymous
questionnaires are utilized, consensus of expert opinion is achieved
39. Differentiation When Forces Push the Organization Apart
40. Directive Low tolerance for ambiguity,Task and Technical Oriented, Action oriented
and decisive, Efficient, Logical, Practical, Systematic in approach; Focus
on facts and the short run, Tend to be autocratic (speed and results)
41. Disadvantages of
group making
decisions
o A few people dominate or intimidate
o Group think: occurs when group members strive to agree for the sake of
unanimity and thus avoid accurately assessing the decision situation
o Satisficing
o Goal displacement: occurs when the primary goal is subsumed by a
secondary goal
42. Diversification
Strategy
operating businesses in order to spread the risk
43. environmental
scanning
organization's internal & external environments to detect early signs of
opportunities and threats
44. Escalation of
Commitment
bias
Decision makers increase their commitment to a project despite negative
information about it
45. Espoused
values
explicitly stated values and norms preferred by an organization
o Enacted values: represent the values and norms actually exhibited in the
organization
46. Execution a central part of a company's strategy. Consists of using questioning,
analysis, and follow-through to mesh strategy with reality, align people with
goals, and achieve results promised
47. Forced Ranking Grading on a Curve
48. Forced Ranking
Performance
Review Systems
all employees within a business unit are ranked against one another and
grades are distributed along some sort of bell curve
49. Formal
Appraisals
conducted at specific times throughout the year and are based on
performance measures that have been established in advance
50. Framing the tendency of decision makers to be influenced by the way a situation or
problem is presented to them
51. Functional
structure
people with similar occupational specialties are put together in formal
groups.
52. General
Decision
Making Styles
Directive, Analytic, Conceptual, Behavioral
53. Grand Strategy explains how the organization's mission is to be accomplished, after an
assessment of current organizational performance.
54. Group Driven people express decisions anonymously on network, produces greater
quality then traditional
55. Groups and
Decision
Making
They are Less Efficient, Their Size Affects Decision Quality, They may be
too confident, Knowledge Counts
56. Hierarchy
Culture
Internal focus and values stability and control over flexibility; Dell Computer
57. Horizontal Who specializes in what work
Hierarchy of
Authority
58. How
Employees
Learn Culture
Symbols, Stories, Heroes, and Rites and Rituals
59. Human
Resource Law
(4 Areas)
Labor Relations, Compensation & Benefits, Health & Safety, Equal
Employment Opportunity
60. Incremental managers take small, short-term steps to alleviate the problem
61. Ineffective
Reactions
Relaxed Avoidance, Relaxed Change, Defensive Avoidance, Panic
62. Informal
Appraisals
conducted on an unscheduled basis and consist of less rigorous indications
of employee performance
63. integrated
organization
characteristics
•Specialists working together toward a common goal
•Use of cross-functional teams
•Frequent communication
•A formal chain of command
•Standardized rules and procedures
64. Integration When Forces Pull the Organization Together
65. Life Cycle:
Four Stages in
the Life of an
Organization
Stage 1: Birth: the nonbureaucratic stage, the stage in which the
organization is created
Stage 2: Youth: the prebureaucratic stage, the stage a growth and
expansion
Stage 3: Midlife: the bureaucratic stage, a period of growth evolving into
stability
Stage 4: Maturity: the organization becomes very bureaucratic, large and
mechanistic
66. Major
Elements of an
Organization
Common Purpose: Means for Unifying Members, Coordinated Effort:
Working Together for Common Purpose, Division of Labor: Work
Specialization for Greater Efficiency, Hierarchy of Authority: The Chain of
Command , Span of Control: Narrow (tall) vs. Wide (flat), Authority,
Responsibility, and Delegation: Line vs. Staff Positions, Centralization vs.
Decentralization of Authority
67. Market Culture Strong external focus and values stability and control; Merrill Lynch
68. maturity stage
of the product
life cycle
is the most profitable stage, and is the period in which customer demand
increases, the product's sales grow, and competitors may enter the market.
69. Mechanistic
Organizations
Rigidity & Uniformity Work Best: Centralized hierarchy of authority, Many
rules and procedures; specialized tasks, Employees are closely supervised
70. Mutual-benefit voluntary collectives whose purpose is to advance members' interests
(unions, trade associations)
71. Network
structure
the organization has a central core that is linked to outside independent
firms by computer connections, which are used to operate as if all were a
single organization.
72. Nonrational explain how managers actually make decisions assuming that decision
making is nearly always uncertain and risky, making it difficult for
managers to make optimal decisions
73. Observable
Artifacts
Physical manifestations of culture
o Rituals
o Awards
o Decorations
o Behaviors
74. Operating plan typically designed for a one year period, defines how you will conduct
your business based on the action plan (identifies clear targets)
75. Operational goals set by and for first line managers and are concerned with short term
matters associated with realizing tactical goals
76. Operational
planning
determine how to accomplish specific tasks with available resources
within the next 1-52 weeks: First-Line Management
77. Organic
Organizations
Looseness & Flexibility Work Best: Decentralized hierarchy of authority,
rules and procedures; shared tasks, Networks of employees are
encouraged to cooperate and respond quickly to unexpected tasks;
informal communication
78. Organization system of consciously coordinated activities or forces of two or more
people. (Chester I. Barnard's classic definition)
79. Organizational
Culture
sometimes called corporate culture, is a system of shared beliefs and
values that develops within an organization and guides the behavior of its
members. "Social Glue."
80. Organizational
Culture, Levels
Observable Artifacts, Espoused Values , Basic Assumptions
81. Organizational
Culture Types (4)
Clan, Adhoracy, Market, Hierarchy
82. Panic Manager is so frantic to get rid of the problem that he or she can't deal with the
situation realistically
83. Performance
Management
continuous cycle of improving job performance through goal setting,
feedback and coaching, and rewards and positive reinforcement.
84. Porter's Four
Competitive
Strategies/Four
generic strategies
1)Cost-leadership
2) Differentiation
3) Cost-Focus
4) Focused-Differentiation
85. Porter's model for
industry analysis,
5 forces
Threats of new entrants, Bargaining power of suppliers, Bargaining
power of buyers, Threats of substitute products or services, Rivalry
among competitors
86. Predictive
Modeling
data mining technique used to predict future behavior and anticipate the
consequences of change.
87. Product life cycle
("life" of
marketability)
Intro, Growth, Maturity, Decline.
88. Project life cycle
(four stages)
Definition, Planning, Execution, Closing
89. Project
management
achieving a set of goals through planning, scheduling, maintaining
progress of all activities that comprise the project
90. Prospectors focus on developing new products/services and in seeking out new
markets, rather than waiting for things to happen
91. Prospect Theory suggests that decision makers find the notion of an actual loss more
painful than giving up the possibility of a gain
92. Qui pro quo occurs when the person who claims sexual harassment is put in the
position of jeopardizing a significant job opportunity unless he or she
acquiesces.
93. Rational called the classical model; explains how managers SHOULD make
decisions; assumes managers will make logical decisions that will be the
optimum in furthering the organization's best interests
94. Reactors make adjustments only when finally forced to by environmental
pressures
95. Relaxed
Avoidance
Manager decides to take no action in the belief that there will be no great
negative consequences
96. Relaxed Change Manager realizes that complete inaction will have negative
consequences but opts for the first available alternative that involves low
risk
97. Representativeness
Bias
Faulty generalizing from a small sample or single event
98. Risk Propensity the willingness to gamble or to undertake risk for the possibility of
gaining an increased payoff
99. Selection Tools 3
Types
Background Information, Interviewing, Employment Tests
100. Seven essential
types of leader
behaviors to fuel
execution
o Know your people and your business
o Insist on realism
o Set clear priorities
o Follow through
o Reward the doers
o Expand people's capabilities
o Know yourself
101. Seven Implementing
Principles
Treat your organization as an unfinished prototype, No brag, just
facts, See yourself and your organization as outsiders do, Evidence-
based management is not just for senior executives, Like everything
else, you still need to sell it, If all else fails, slow the spread of bad
practice, The best diagnostic question: what happens when people
fail?
102. Skunkworks a project team whose members are separated from the normal
operation of an organization and asked to produce a new innovative
product
103. SMART goals Specific, Measurable, Attainable, Results oriented, Target dates
104. Span of Control refers to the number of people reporting directly to a given manager.
105. Standing plan plans developed for activities that occur repeatedly over a period of
time
106. Strategic goals set by and for top management and focus on objectives for the
organization as a whole
107. Strategic
management
a process that involves managers from all parts of the organization in
the formulation and implementation of strategies and strategic goals
108. Strategic
management, 5
steps
establish the mission and vision, establish the grand strategy with
environmental scanning (explains how the organization's mission is to
be accomplished), formulate the strategic plans (choosing among
different strategies and altering them to best fit the organization's
needs), carry out the strategic plans, maintain strategic control
(monitor & make adjustments)
109. strategic
management
process
Establish mission and vision, establish grand strategy, formulate
strategic plan, carry out strategic plan, maintain strategic control
110. Strategic planning determine what the organization's long term goals should be for the
next 1-5 years with the resources they expect to have available: Top
Management
111. Strategic
positioning
attempts to achieve sustainable competitive advantage by preserving
what is distinct about an organization.
112. Strategy
Formulation
the process of choosing among different strategies and altering them
to best fit the organization's needs.
1) strategy is the creation of a unique and valuable position
2) Strategy requires trade-offs in competing
3) Strategy involves creating a "fit" among activites
113. Strategy types Defenders, Prospectors, Analyzers, Reactors
114. Sunk Cost Bias When managers add up all the money already spent on a project and
conclude it is too costly to simply abandon it
115. SWOT or
situational analysis
(Strengths, weaknesses, opportunities, threats)
Synergy: the economic value of separate related business under 1
owner is greater together than the businesses are worth separately
116. Tactical goals set by and for middle managers and focus on the actions needed to
achieve strategic goals
117. Tactical planning determine what contributions their departments or similar work units
can make with their given resources during the next 6-24 months -
Middle Management
118. Three Core
Processes of
Business
People, Strategy, and Operations
119. Three Levels of
Organizational
Culture
1) Observable Artifacts
2) Espoused values
3) Basic Assumptions
120. Trend analysis hypothetical extension of a past series of events into the
future
121. Value
Orientation
extent to which a person focuses on either task or
technical concerns or people and social concerns when
making decisions
122. Vertical
Hierarchy of
Who reports to whom
Authority
123. Why Strategic
management?
1) provide direction and momentum
2) encourage new ideas
3) develop a sustainable competitive advantage
1. accountability managers must report and justify work results to the
managers above them
2. adhocracy culture external focus and values flexibility
3. authority the rights inherent in a managerial position to make
decisions, five orders, and utilize resources
4. authority ...
5. boundary-less organization a fluid, highly adaptive organization whose members,
linked by information technology, come together to
collaborate on common tasks
6. centralized authority important decisions are made by higher-level managers
7. CHESTER barnard's classic
definition of ORGANIZATION
a system of consciously coordinated activities or forces of
2 or more people
8. clan culture has an internal focus and values flexibility rather than
stability and control
9. common purpose unifies employees or members and gives everyone an
understanding of the organization's reason for being
10. contingency design process of fitting the organization to its environment
11. coordinated effort the coordination of individual efforts into group or
organizationwide effort
12. customer divisions tend to group activities around common customers or
cliets
13. decentralized authority important decision are made by middle-level and
supervisory-level managers
14. delegation the process of assigning managerial authority and
responsibility to managers and employees lower in the
hierarchy
15. differentiation the tendency of the parts of an organization to disperse
and fragment
16. divisional structure people with diverse occupational specialties are put
together in formal groups by similar products or services,
customers or clients, or geographic regions
17. division of labor (work
specialization)
arrangement of having discrete parts of a task done by
different people
18. enacted values represent the value and norms actually exhibited in the
organization
19. espoused values the explicitly stated values and norms preferred by an
organization
20. flat organization defined as one with an organizational structure with few or
no levels of middle management between top managers
and those reporting to them
21. functional structure people with similar occupational specialties are put together
in formal groups
22. geographic divisions group activities around defined regional locations
23. hero a person whose accomplishments embody the values of the
organization
24. hierarchy culture has an internal focus and values stability and control over
flexibility
25. hierarchy of authority
(Chain of command)
control mechanism for making sure the right people do the
right things at the right time
26. hollow structure
(network structure)
the org has a central core of key functions and outsources
other functions to vendors who can do them cheaper or
faster
27. horizontal design
(team-based design)
teams or workgroups, either temporary or permanent, are
used to improve collaboration and work on shared tasks by
breaking down internal boundaries
28. integration the tendency of the parts of an organization to draw
together to achieve a common purpose
29. Line managers have authority to make decisions and usually have people
reporting to them
30. market culture has a strong external external focus and values stability and
control
31. matrix structure an organization combines functional and divisional chains
of command in a grid so that there are 2 command
structures - vertical and horizontal
32. mechanistic
organization
authority is centralized - tasks and rules are clearly
specified, and employees are closely supervised
33. modular structure a firm assembles product chunks, or modules, provided by
outside contractors
34. mutual-benefit
organizations
voluntary collectives whose purpose is to advance
members' interests
35. organic
organization
authority is decentralized - there are fewer rules and procedures,
and networks of employees are encouraged to cooperate and
respond quickly to unexpected tasks
36. organizational
culture
(corporate
culture)
defined as the set of shared, taken-for-granted implicit assumptions
that a group holds and that determines how it perceives, thinks
about, and reacts to its various environments
37. organizational
design
is concerned with designing the optimal structures of accountability
and responsibility that an organization uses to execute its trategies
38. organizational
structure
formal system of task and reporting relationships that coordinates
and motivates an organization's members so that they can work
together to achieve the organization's goals
39. organization
chart
a box-and-lines illustration showing the formal lines of authority and
the organization's official positions or work specializations
40. person-
organization fit
reflects the extent to which your personality and values match the
climate and culture in an organization
41. product
divisions
group activities around similar products or services
42. resposbility the obligation you have to perform the tasks assigned to you
43. rites and
rituals
the activities and ceremonies, planned and unplanned, that celebrate
important occasions and accomplishments in the organization's life.
44. simple
structure
has authority centralized in a single person, a flat hierarchy, few
rules, and low work specialization
45. span of control
(management)
number of people reporting directly to a given manager
46. staff personnel have authority functions; they provide advice, recommendations, and
research to line managers
47. story a narrative based on true events, which is repeated - and sometimes
embellished upon - to emphasize a particular value
48. symbol an object, act, quality, or event that conveys meaning to other
49. unity of
command
an employee should report to no more than one manager
50. virtual organization an organization whose members are
geographically apart, usually working with e-
mail, collaborative computing, and other
computer connections, while often appearing
to customers and others to be a single, unified
organization with a real physical location.
51. virtual structure a company outside a company that is created
"specifically to respond to an exceptional
market opportunity that is often temporary"
1. adhocracy culture has an external focus and values flexibility
2. Basic Assumption Basic assumptions which are not
observable, represent the core values of
organization's culture- those that are taken
for granted and, as a result, are difficult to
change
3. changing the organizational
culture won't necessarily boost
financial performance (but it
might)
there are no guarantees that making
changes in a firm's organizational culture
will lead to a jump in revenues and profits,
although any changed that improve its
competitive advantages may produce
financial beneifts
4. clan culture has which of the
following characteristics
1. A family type organization
2. encourages collaboration among
employees
3. strives to encourage cohesion through
consensus and job satisfaction
5. clan culutre has an internal focus and values flexibility
rather than stability and control
6. competing values framework 1. clan 2. adhocracy 3, market 4. hierarchy
7. Edgar Schein, organizational
culture
sometimes called corporate culture, as the
set of shared, taken for granted implicit
assumptions that a gorup holds and the
determines how it perceives, thinks about,
and reacts to its various enivronmetns
8. Elements of these cultures can
be used to boost innovation and
quality
Managers can build into their organization's
characteristics of some or all of these three
cultures- clan, adhoracy, and market- to
increase innovation and improve the
wquality of their products
9. Employees are happier with clean
cultures
Employees are more satisfied with and
committed to organizations with clan
cultures which are value flexibly over
stability and control and which are more
concerned with satisfying the needs of
employees than those of shareholders or
customers
10. enacted values which represent the values and norms
actually exhibited in the organization
11. Espoused Value are the explicitly states values and norms
preferred by an organization, as may be put
fourth by the firm's founder or top managers
12. hero is a person whose accomplishments embody
the values of the organization
13. hierarchy culture has an internal focus and values stability and
control over flexibility companies with this
kind of culture are apt to have a formalized,
structured work environment aimed at
achieving effectiveness through a variety of
control mechanisms that measure efficiency,
timelines and reliability in the creation and
delivery of products
14. Market cultures tend to produce
bettter results
as the chart shows, market, cultures tend to
better outcomes in employee attitude,
performance, and organizational
effectiveness, therby leading to competitive
advantage. Managers are encouraged,
therefore, to consider how they might make
their cultures more market oriented
15. observable artifacts At the most visible level, organizational
culture is expressed in observable artifacts
physical manifestations such as manner of
dress, awards, myths and stories about the
company, rituals and ceremonies and
decorations, as well as visible behavior
exhibited by managers and employees
16. Organizational culture appears 1. observable artifacts 2. espoused values 3.
as 3 layers basic assumptions
17. organizational structure formal system of task and reporting
relationships that coordinate and motivates
an organization;s members so that they can
work together to achieve the organization's
goals
18. An organization's culture
matters
the type of organizational culture can be a
source of competitive advantage
19. person-organization fit which reflects the extent to which your
personality and values match the climate and
culture in an organization
20. Rites and rituals are the activities and ceremonies, planned
and unplanned, that celebrate important
occasions and accomplishments in the
organization's life
21. story is a narrative based on true events, which is
repeated and sometimes embellished upon-
to emphasize a particular value
22. symbol is an object act, quality, or event that
conveys meaning to others. In an
organization, symbols convey its most
important values
23. type of organization culture that
has a strong external focus and
values stability and control is
market culture
1
.3 factors to be considered in
designing an organization's
structure
1. environment- mechanistic versus organic
2. environment- differentiation verus integration
3. link between strategy, culture, and structure
2
.3 levels of organizational culture Level 1: Observable artifacts
Level 2: Espoused Values
Level 3: Basic Assumptions
3
.3 types of structures in this class of
organizational design are :
hollow, modular and virtual structures
4
.4 types of organizational culture clan, adhocracy, market, hierarchy
5
.12 ways to change organizational
culture
1. formal statements
2. slogans and sayings
3. rites and rituals
4. stories, legends and myths
5. leader reactions to crises
6. role modeling, training, and coaching
7. physical design
8. rewards, titles, promotions & bonuses
9. organizational goals & performance criteria
10. measurable & controllable activities
11. organizational structure
12. organizational systems & procedures
6. according to research, employees
are generally more satisfied with
and committed to organizations
with ____ cultures
clan
7. accountability managers must report and justify work
results to the mangers above them
8. adhocracy culture external focus and values flexibility.
endostim is an example bc they attempt to
create innovative products by being
adaptable, creative, and quick to respond
to changes in the marketplace. employees
are encouraged to take risks and
experiement with new ways of getting
things done. good for start up companies.
9. boundary-less organization fluid, highly adaptive organization whose
members, linked by information
technology, come together to collaborate
on common tasks. the collaborators may
include not only coworkers but also
suppliers, customers, and even
competitors
10. centralized authority important decisions are made by higher-
level managers
11. the chain of command is also
referred to as the organizations
___ hierarchy
vertical
12. clan culture has an internal focus and values flexibility
rather than stability and control. like a
family-type organization. clan
organizations devote considerable
resources to hiring and developing their
employees, and they view customers as
partners ex) southwest, encourages
managers to spend 10-20% of their off
work hours with employees
13. clan culture characterisitics -strives to encourage cohesion through
consensus and job satisfaction
-encourages collaboration among
employees
-a family-type organization
14. common elements of
organizations: four proposed by
edgar schein
1. common purpose
2. coordinated effort
3. division of labor
4. hierarchy of authority
1
.
According to Bossidy and
Charan, effective ______
execution - Bossidy and Charan outline how
organizations and managers can improve the ability to
requires managers to build a
foundation for it within three
core process: people,
strategy, and operations
execute. Effective execution requires managers to build a
foundation for execution within three core processes
found in any business: people, strategy, and operations.
2
.
According to Bossidy and
Charan, which business
process is most important for
effective execution?
People - A company's overall ability to execute is a
function of effectively executing according to three
processes: people, strategy, and operations. Because all
work ultimately entails some human interaction, effort, or
involvement, Bossidy and Charan believe that the people
process is the most important.
3
.
Actively selling strategic plans
to middle and supervisory
managers, rather than just
announcing them, is helpful
for
Strategy implementation. - Often strategy implementation
means overcoming resistance by people who feel the
plans threaten their influence or livelihood. Thus, top
managers can't just announce the plans; they have to
actively sell them to middle and supervisory managers.
4
.
After film manufacturer Kodak
failed to reinvent itself and
declared bankruptcy in 2012, it
decided to focus on its
business of making inkjet
printers as part of a ______
strategy
Defensive - A defensive strategy or a retrenchment
strategy, is a grand strategy that involves reduction in the
organization's efforts. In variations of this strategy, it can
declare bankruptcy or gradually phase out product lines
or services.
5
.
Alexis has prepared a report
that details how prices for
several raw materials her firm
uses in production have risen
by up to 30% in the last year
Her report would be an input into the __________ part of
a SWOT analysis. threats - Rising costs for raw materials
in an external threat to a company.
6
.
Amanda has just determined
that her employees will require
extensive training if they are
to acquire the necessary
technological expertise to
produce a new product line
She has discovered one of her firm's. weaknesses. - The
lack of technological expertise is a weakness of the
organization.
7
.
Analysis of changing
demographics of the U
S. population would be part of the assessment of a
company's. Opportunities or threats depending on the
outcome of the analysis. - Changing demographics may
be either an opportunity or a threat in the environment.
For example, the aging population may help some firms
but hurt others.
8
.
Anne runs
a small
bakery on
the main
street of a
resort
town
Though hers was the only bakery around, the business had been suffering
during the economic slowdown, and she was contemplating whether she
should attempt strategic planning. Anne should be aware of what research
finding regarding strategic planning?. Both small and large firms benefit from
strategic planning, but the small improvement in performance may not be
worth the effort for small firms. - One analysis of several studies found that
strategic planning was appropriate not just for large firms. Companies with
fewer than 100 employees could benefit as well, although the improvement in
financial performance was small. Nevertheless, the researchers concluded, "it
may be that the small improvement in performance is not worth the effort
involved in strategic planning unless a firm is in a very competitive industry
where small differences in performance may affect the firm's survival
potential."
9
.
Apple's
iPad has a
very high
percentage
of the
market for
tablet
computers,
and this is
also a
quickly
growing
market
Thus, using the BCG matrix, the iPad would be classified as a. star - In the
BCG matrix, stars have high growth and high market share, and are definite
keepers.
1
0
.
The benefit
of the
single-
product
strategy
for a
company
is
Focus. -Making just one product allows you to focus your manufacturing and
marketing efforts just on that product. This means that your company can
become savvy about repairing defects, upgrading production lines, scouting
the competition, and doing highly focused advertising and sales.
1
1
.
Careful
monitoring
of an
organizatio
n's internal
and
external
environme
nt to detect
Environmental scanning. - Environmental scanning is careful monitoring of an
organization's internal and external environments to detect early signs of
opportunities and threats that may influence the firm's plans.
early signs
of
opportuniti
es and
threats
that may
influence
the firm's
plans is
called
1
2
.
The
common
grand
strategies
are
growth, stability, and defensive. - Three common grand strategies are growth,
stability, and defensive.
1
3
.
Computer
technology
corporatio
n Dell
recently
acquired
Quest
software,
an IT
manageme
nt software
provider, in
order to
expand
upon its
software
expertise
and
offerings
Dell is pursuing a(n) ______ strategy. growth - A growth strategy is a grand
strategy that involves expansion, as in expanding sales revenues, market
share, number of employees, or number of customers or (for nonprofits)
clients served. In a variation of this strategy, it can acquire similar or
complementary businesses.
1
4
.
______
consists of
monitoring
the
execution
of strategy
and
making
adjustment
Strategic control - Strategic control consists of monitoring the execution of
strategy and making adjustments, if necessary.
s, if
necessary
1
5
.
Consumers can use a
national company
called Service Magic to
receive bids from
quality providers of a
variety of services,
including home
remodel, landscaping,
plumbing, and
housecleaning
Service Magic charges service providers for the leads it
provides to them monthly. Which of the following is the source
of Service Magic's strategic position?. Broad needs and many
customers. - According to Porter, strategic positioning attempts
to achieve sustainable competitive advantage by preserving
what is distinctive about a company. "It means," he says,
"performing different activities from rivals, or performing similar
activities in different ways."
1
6
.
Creation of alternative
hypothetical but equally
likely future conditions
is called
contingency planning. - Contingency planning, also known as
scenario planning and scenario analysis, is the creation of
alternative hypothetical but equally likely future conditions.
1
7
.
Daniel is assessing his
company's portfolio of
products
One of them is the best-selling brand of mayonnaise, although
this is now a slow-growing market. If Daniel uses the BCG
matrix, he would classify this product as a. cash cow. - In the
BCG matrix, cash cows have slow growth but high market
share, and income from them often finances stars and question
marks.
1
8
.
Effective strategic
management involves
Managers from all parts of the organization. - Strategic
management is a process that involves managers from all parts
of the organization in the formulation and the implementation of
strategies and strategic goals. Precisely because middle and
first-line managers are the ones who will be asked to
understand and implement the strategies, they should also help
to formulate them.
1
9
.
Environmental factors
that the organization
may exploit for a
competitive advantage
are known as
organizational opportunities. - Organizational opportunities are
environmental factors that the organization may exploit for
competitive advantage.
2
0
.
An example of a firm
that pursues a
differentiation strategy
is
Bic. - The differentiation strategy is to offer products or services
that are of unique and superior value compared to those of
competitors but to target a wide market. Because products are
expensive, managers may have to spend more on R&D,
marketing, and customer service. This is the strategy followed
by Ritz-Carlton hotels and the makers of Lexus automobiles.
2
1
.
Faisal has been running
a commercial real
estate business for
nearly 30 years
As he approaches retirement, he is content to simply lease the
commercial space he currently has, rather than make new
deals to develop additional properties. Faisal is using which
grand strategy?. Stability - A stability strategy is a grand
strategy that involves little or no significant change.
2
2
.
"Find out what
customers want, then
provide it to them as
cheaply and quickly as
possible" is Walmart's
strategy - A strategy is a large-scale action plan that sets the
direction for an organization. An example is "Find out what
customers want, then provide it to them as cheaply and quickly
as possible," the strategy of Walmart.
2
3
.
A fine luggage maker
was struggling with
heavy debt and a sharp
decline in customers,
and it eventually
declared bankruptcy
The company followed which grand strategy?. Defensive - A
defensive strategy or a retrenchment strategy, is a grand
strategy that involves reduction in the organization's efforts. In a
variation of this strategy, it can declare bankruptcy.
2
4
.
Gaining information
about one's
competitors' activities
so that you can
anticipate their moves
and react appropriately
is called
Competitive intelligence. - Practicing competitive intelligence
means gaining information about one's competitors' activities so
that you can anticipate their moves and react appropriately.
2
5
.
A grand strategy that
involves reduction in
the organization's
efforts is the ______
strategy
retrenchment - A defensive strategy or a retrenchment strategy,
is a grand strategy that involves reduction in the organization's
efforts.
2
6
.
High Peaks Skate and
Snowboard is a small
shop that provides
equipment for Utah
snowboarders in
winter months
It has decided to increase advertising during this period in the Salt
Lake Tribune and the Park Record in Park City, as well as to
sponsor a new on-mountain competition. It is following which
strategy?. Growth - A growth strategy is a grand strategy that
involves expansion, as in expanding sales revenues, market
share, number of employees, or number of customers or (for
nonprofits) clients served. In a variation of this strategy, it can
increase its promotion and marketing efforts to try to expand its
market share.
2
7
An Iowa ethanol It has responded by selling off land, buildings, and some of its
.production company
has been suffering
from a combination of
lower demand for
gasoline (into which
its product is mixed)
and higher corn
prices (which is the
largest input cost)
reserve product inventory. This is a variation of which of these
grand strategies?. Defensive - A defensive strategy or a
retrenchment strategy, is a grand strategy that involves reduction
in the organization's efforts. In a variation of this strategy, it can
sell off (liquidate) assets like land, buildings, inventories, and the
like.
2
8
.
A manager assessing
the organization's
access to capital is
involved in analysis
of
Strengths or weaknesses depending on the outcome of the
assessment. - Access to capital may be either an internal strength
or weakness, since some firms have this and others don't.
2
9
.
__________ means
performing different
activities from rivals
or performing similar
ones in different ways
Strategic positioning - According to Porter, strategic positioning
attempts to achieve sustainable competitive advantage by
preserving what is distinctive about a company. "It means," he
says, "performing different activities from rivals, or performing
similar activities in different ways."
3
0
.
Milo owns and
manages a small bike
repair store
In order to determine if strategic planning will be likely to help his
business, Milo should primarily assess. how many competitors he
has. - Strategic planning is not likely to result in a significant
improvement unless Milo is in a highly competitive industry.
3
1
.
Oil companies must
be aware of other
firms' development of
ethanol products
since this is an
example of which one
force in Porter's
model for industry
analysis?
Threats of substitute products and services. - In an example of
the threats of substitute products or services, oil companies might
worry that Brazil is close to becoming energy self-sufficient
because it is able to meet its growing demand for vehicle fuel by
substituting ethanol derived from sugarcane for petroleum.
3
2
.
An organization is
developing a low-cost
line of
environmentally
friendly cleaning
products that it
intends to distribute
internationally
Here, the organization is following a ______ strategy. cost
leadership - The cost-leadership strategy is to keep the costs, and
hence prices, of a product or service below those of competitors
and to target a wide market.
3
3
.
An organization that
is offering unique,
superior products or
services to a wide
market is pursuing a
strategy of
differentiation. - The differentiation strategy is to offer products or
services that are of unique and superior value compared to those
of competitors but to target a wide market.
3
4
.
An organization that
keeps costs and
prices low in
targeting a narrow
market is pursuing a
strategy of
cost focus. The cost-focus strategy is to keep the costs, and
hence prices, of a product or service below those of competitors
and to target a narrow market.
3
5
.
An organization that
offers unique,
superior products or
services to a narrow
market is pursuing a
strategy of
focused differentiation. - The focused-differentiation strategy is to
offer products or services that are of unique and superior value
compared to those of competitors and to target a narrow market.
3
6
.
Porter's competitive
strategies include
cost leadership, differentiation, cost focus, and focused
differentiation. - Porter's four competitive strategies (also called
four generic strategies) are (1) cost leadership, (2) differentiation,
(3) cost-focus, and (4) focused-differentiation.
3
7
.
The process of
choosing among
different strategies
and altering them to
best fit the
organization is called
Strategy formulation. - Strategy formulation is the process of
choosing among different strategies and altering them to best fit
the organization's needs.
3
8
.
Rafaela is interested in
learning more about what
one of her competitors is
doing so that she can
anticipate its upcoming
moves and react quickly
Which of the following would you suggest to her for this
purpose?. Use investor information. - Gaining competitive
intelligence isn't always easy, but there are several avenues
and, surprisingly, most of them are public sources including
the public prints and advertising, investor information, and
informal sources such as trade show gossip and tidbits from
salespeople.
3
9
.
Recently ConocoPhillips,
America's third-biggest oil
company, spun off its
refineries, pipelines, and
chemicals division to form
Now ConocoPhillips will concentrate on its upstream
operations. This is a variation of which of these grand
strategies?. Defensive - A defensive strategy or a
retrenchment strategy, is a grand strategy that involves
reduction in the organization's efforts. In a variation of this
a new company called
Phillips 66
strategy, it can divest part of its business, as in selling off
entire divisions or subsidiaries.
4
0
.
A recent survey found that
the top concern among
CEOs worldwide is
excellence in execution - How important is execution to
organizational success in today's global economy? A survey
of 769 global CEOs from 40 countries revealed that
"excellence in execution" was their most important concern,
more important than "profit growth," "customer loyalty,"
"stimulating innovation," and "finding qualified employees."
4
1
.
__________ refers to the
idea that the economic
value of separate, related
businesses under one
ownership and
management is greater
together than the
businesses are worth
separately
Synergy - Synergy is the economic value of separate,
related businesses under one ownership, and management
is greater together than the businesses are worth
separately.
4
2
.
A ______ represents an
"educated guess" about
what must be done in the
long term for survival or
the prosperity of the
organization or its principal
parts
strategy - A strategy is a large-scale action plan that sets
the direction for an organization. It represents an "educated
guess" about what must be done in the long term for the
survival or the prosperity of the organization or its principal
parts.
4
3
.
A situational analysis is
also known as
SWOT analysis. - SWOT analysis, also known as a
situational analysis, is a search for the strengths,
weaknesses, opportunities, and threats affecting the
organization.
4
4
.
The skills and capabilities
that give the organization
advantages in executing
strategies in pursuit of its
mission are known as
organizational strengths. - Organizational strengths are the
skills and capabilities that give the organization special
competencies and competitive advantages in executing
strategies in pursuit of its mission.
4
5
.
A small firm is likely to
benefit significantly from
strategic planning
when it is in a very competitive industry. - Researchers
conclude that "it may be that the small improvement in
performance is not worth the effort involved in strategic
planning unless a firm is in a very competitive industry
where small differences in performance may affect the firm's
survival potential."
4
6
A time-series forecast, trend analysis. - An example of trend analysis is a time-
.which is used to predict
long-term trends, cyclic
patterns, and seasonal
variations, is one type of
series forecast, which predicts future data based on
patterns of historical data. Time-series forecasts are used to
predict long-term trends, cyclic patterns (as in the up-and-
down nature of the business cycle), and seasonal variations
(as in Christmas sales versus summer sales).
4
7
.
Time Warner runs different
divisions specializing in
television, music, and
publishing
Time Warner is using a(n) ______ strategy. diversification -
Diversification strategy means operating several businesses
in order to spread the risk. Major entertainment/media
companies follow this strategy.
4
8
.
Timex Group USA makes
inexpensive but reliable
watches sold throughout
the United States and is an
example of an organization
pursuing a _________
strategy
cost-leadership - The cost-leadership strategy is to keep the
costs, and hence prices, of a product or service below those
of competitors and to target a wide market.
4
9
.
A vision or projection of
the future is called a(n)
forecast. - A forecast is a vision or projection of the future.
5
0
.
When analyzing the "O" in
SWOT analysis, a manager
might take note of
Favorable government regulations. - A manager may be
able to discover an opportunity in favorable government
regulations.
5
1
.
When analyzing
the "S" in a SWOT
analysis, a
manager might
take note of
Strong financial resources of the firm. - Strengths of a company can
include financial resources and requirements, which are an internal
factor.
5
2
.
When analyzing
the "T" in SWOT
analysis, a
manager might
take note of
A competitor's new product. - A competitor's new product may be a
threat if it is likely to capture market share.
5
3
.
When analyzing
the "W" in SWOT
analysis, a
manager might
take note of
High turnover of employees. - High turnover of employees is an
internal matter that is a weakness.
5
4
.
Which of the
following best
represents a
Get consumers tightly connected to the company's ecosystem. - With
big companies, especially big-tech companies such as Amazon,
Google, or Apple, the strategy is to get consumers tied not just to a
currently popular
strategy among
big companies
like Apple,
Google, and
Amazon?
brand or device or platform but to make them captive of the
company's ecosystem and to get them connected "as tightly as
possible so they and their content are locked into one system," says
analyst Michael Gartenberg.
5
5
.
Which of the
following
carmakers
pursues a
focused-
differentiation
strategy?
Ferrari - The focused-differentiation strategy is to offer products or
services that are of unique and superior value compared to those of
competitors and to target a narrow market.
5
6
.
Which of the
following is a
question that
should be
answered by a
company's
mission
statement?
Who is our customer? - Good mission statements should answer the
question, "Who is our customer?"
5
7
.
Which of the
following is most
likely to use a
diversification
strategy?
A grocery store - Diversification strategy means operating several
businesses in order to spread the risk. A grocery store sells food,
toiletries, pharmaceuticals, cards, flowers, and often more.
5
8
.
Which of the
following is not a
likely source of
information for
competitive
intelligence?
Competitor's customer records - Gaining competitive intelligence isn't
always easy, but there are several avenues and, surprisingly, most of
them are public sources including the public prints and advertising,
investor information, and informal sources. A competitor's customer
records are not available publicly, nor would they yield much
information about upcoming plans.
5
9
.
Which of the
following is not an
area in which a
company needs to
get and stay
ahead in order to
sustain a
competitive
advantage?
Employees - Sustainable competitive advantage occurs when an
organization is able to get and stay ahead in four areas: (1) in being
responsive to customers, (2) in innovating, (3) in quality, and (4) in
effectiveness.
6
0
.
Which of the
following is not a
stage in the
strategic-
management
process?
Conduct a trend analysis. - The steps of the strategic-management
process are establishing the mission and vision, establishing the
grand strategy, formulating the strategic plans, carrying out the
strategic plans and maintaining strategic control.
6
1
.
Which of the
following is not a
typical cause of
bad planning?
Inadequate planning budgets. - Bad planning usually results from
faulty assumptions about the future, poor assessment of an
organization's capabilities, ineffective group dynamics, and
information overload.
6
2
.
Which of the
following is not
one of Bryan
Barry's
recommendations
to keep a strategic
plan on track?
Avoid compromise. - To keep a strategic plan on track, suggests
Bryan Barry, you need to do the following: Engage people. Keep it
simple. Stay focused. Keep moving.
6
3
.
Which of the
following is not
one of the forces
that affects
industry
competition,
according to
Porter's model for
industry analysis?
Threats of government interference. - Strategic-management expert
Michael Porter suggested in his Porter's model for industry analysis
that business-level strategies originate in five primary competitive
forces in the firm's environment: (1) threats of new entrants, (2)
bargaining power of suppliers, (3) bargaining power of buyers, (4)
threats of substitute products or services, and (5) rivalry among
competitors.
6
4
.
Which of the following
should be included in a
good vision statement?
Firm's standards of excellence and high ideals. - Good vision
statements should set standards of excellence and reflect high
ideals.
6
5
.
Which of the following
statements about
strategic planning and
strategic management
is true?
Both should be implemented because they can provide
direction and momentum. - There are three reasons why an
organization should adopt strategic management and strategic
planning: (1) to provide direction and momentum, (2) to
encourage new ideas, and above all (3) to develop a
sustainable competitive advantage.
6
6
.
Which of the following
statements about
strategy and strategic
positioning is false?
Few customers with narrow needs can be a source of strategic
position. - Three key principles underlie strategic positioning: (1)
strategy is the creation of a unique and valuable position which
emerges from three sources (few needs and many customers,
broad needs and few customers, broad needs and many
customers). (2) Strategy requires trade-offs in competing; a
company has to choose not only what strategy to follow but
what strategy not to follow. (3) Strategy involves creating a "fit"
among activities.
6
7
.
Which of the following
steps of the strategic-
management process is
the source of its
feedback loop?
Maintain strategic control. - The feedback loop, which provides
an opportunity to revise actions, originates at the final step of
the strategic-management process, to maintain strategic
control.
6
8
.
Which of the following
strategy tools suggests
that an organization will
do better in fast-
growing markets in
which it has a high
market share rather
than in slow-growing
markets in which it has
a low market share?
The BCG matrix - In general, the BCG matrix suggests that an
organization will do better in fast-growing markets in which it
has a high market share rather in slow-growing markets in
which it has a low market share. These concepts are illustrated
in Figure 6.4.
6
9
.
Which of the following
would be considered a
reason for adopting
strategic management
and strategic planning?
To provide develop a sustainable competitive advantage. -
There are three reasons why an organization should adopt
strategic management and strategic planning: (1) to provide
direction and momentum, (2) to encourage new ideas, and
above all (3) to develop a sustainable competitive advantage.
1
.
The ______ Act established the Equal
Employment Opportunity Commission.
A. Equal Pay
B. Wagner
C. Social Security
D. Occupational Safety and Health
E. Civil Rights
E. Civil
Rights
2
.
The activities managers perform to plan
for, attract, develop and retain an
effective workforce are called
A. personnel development.
B. contingency planning.
C. human
resource
manageme
nt
C. human resource management.
D. job analysis.
E. performance appraisal.
3
.
Adam, an HR manager, was using
reports from the U.S. Bureau of Labor
Statistics and the U.S. Census Bureau
for information about his industry's
labor pool in his geographic area. Adam
is planning to
A. perform a job analysis.
B. recruit from inside the organization.
C. analyze human capital.
D. develop an affirmative action
program.
E. recruit from outside the organization.
E. recruit
from
outside the
organization
4
.
After being referred by a friend,
(Hasina)Shabina attended a job
interview. She didn't feel it went well, but
was surprised when her friend told her
the boss didn't like that she had worn
her hijab, a traditional headscarf, saying
"our customers prefer working with
Christians". This is an example of
A. affirmative action.
B. quid pro quo.
C. discrimination.
D. hostile work environment.
E. favoritism.
C.
discriminati
on
5
.
Carmela was surprised to learn that at
her company not everyone would
receive a bonus this year. Instead,
management planned to rank all of the
employees in her division and award
bonuses only to the top 20%. This is an
example of a ______ performance review
system.
D. forced
ranking
A. standard curve
B. normal distribution
C. functional positioning
D. forced ranking
E. unit grading
6. The degree to which a test measures the
same thing consistently is known as its
A. legality.
B. reliability.
C. validity.
D. significance.
E. dependability.
B. reliability.
7. A ______ describes the minimum
qualifications a person must have to
perform a job successfully.
A. job specification
B. realistic job preview
C. job description
D. job analysis
E. performance appraisal
A. job
specification
8. The economic or productive potential of
employee knowledge and actions is called
A. human capital.
B. labor capital.
C. social capital.
D. potential capital.
E. productivity capital.
A. human
capital
9. The economic or productive potential of
strong, trusting, and cooperative
relationships is called
B. social
capital
A. relational capital.
B. social capital.
C. personal capital.
D. productivity capital.
E. human capital.
10. Executives often negotiate generous
severance packages that they receive if the
company is taken over by another. These
are known as
A. quid pro quo.
B. golden parachutes.
C. maquiladoras.
D. BARS.
E. 360-degree pay.
B. golden
parachutes.
11. A feedback technique in which an employee
is appraised by her boss, peers,
subordinates, and possibly clients is called
a
A. MBO appraisal.
B. reciprocal appraisal.
C. BARS appraisal.
D. 360-degree appraisal.
E. results appraisal.
D. 360-
degree
appraisal.
1
2
.
Gabriella had been working as an
executive assistant to the president
for nearly twenty years, so when
she retired no one had a good idea
of all that her job entailed. Before
she left, Laura sat with her for two
weeks to observe her duties and
ask her the details of all functions.
Laura was performing a
A. behavioral-description interview.
D. job analysis
B. performance appraisal.
C. informal appraisal.
D. job analysis.
E. job rotation.
1
3
.
If an employee has been dismissed
"for cause" this means that
A. he has the right to get his
position back in the future.
B. he quit the job.
C. the company is downsizing, and
his job is permanently eliminated.
D. he is being laid off.
E. he is being fired for his job
performance.
E. he is being
fired for his job
performance.
1
4
.
In an interview Gabe asked Danielle
to tell him about a time when she
was able to overcome some sort of
adversity. Gabe is conducting a(n)
A. realistic job preview.
B. performance interview.
C. situational interview.
D. behavioral description interview.
E. unstructured interview.
D. behavioral
description
interview.
1
5
.
In considering a promotion for a
subordinate, a manager must
ensure fairness and
A. openness.
B. permanence.
C. profitability.
D. nondiscrimination.
E. safety.
D.
nondiscriminatio
n.
16. In considering the staffing an organization
might need in the future, human resource
managers should
A. focus efforts on replacing those that
retire or resign.
B. assume that the organization will not
change much.
C. assume that there will be radical
changes in the supply of labor and the
nature of the organization's jobs, so
planning here must be deferred.
D. understand the organization's vision
and strategy and hire to support them.
E. hire 10% more people than were needed
last year to cover possible growth.
D. understand
the
organization's
vision and
strategy and
hire to support
them
17. ) In giving feedback to a subordinate, a
manager should
A. communicate her general impression of
the subordinate.
B. avoid giving negative feedback.
C. deliver feedback through a one-way
communication process.
D. save giving feedback for annual or
semi-annual formal appraisals.
E. keep diaries about specific incidents of
the subordinates' performance.
E. keep diaries
about specific
incidents of the
subordinates'
performance.
18. ) In managing subordinates under an
incentive pay plan, a manager should
A. regularly communicate with
subordinates about the plan.
B. set goals with subordinates, but then
leave them alone to pursue those goals.
C. change the plan frequently to continue
to motivate subordinates.
D. set "stretch" goals that are very difficult
(perhaps impossible) to achieve.
A. regularly
communicate
with
subordinates
about the plan.
E. design complex plans that cover all
contingencies.
19. Lauren worked in a distribution warehouse
for a power tool company. Throughout the
building, there were posters and calendars
of a sexually explicit nature, and they
made Lauren very uncomfortable. This is
A. a quid pro quo harassment.
B. not of legal concern because none of
the offensive materials are directed at
Lauren.
C. sexual discrimination.
D. not of legal concern because Lauren is
not suffering any economic injury.
E. a hostile work environment.
E. a hostile
work
environment.
2
0
.
The law that requires an extension of
health insurance benefits after
termination is the
A. Health Insurance Portability &
Accountability Act (HIPAA)
B. Social Security Act
C. Consolidated Omnibus Budget
Reconciliation Act (COBRA)
D. Occupational Safety and Health Act
E. Civil Rights Act
C.
Consolidate
d Omnibus
Budget
Reconciliati
on Act
(COBRA)
2
1
.
Management at Perry Architecture
wanted to raise the levels of minorities
and women in its ranks. So, the
company began an active recruitment
program with a local university, and a
special career development program as
well. Perry has started a(n) ______ plan.
A. reverse discrimination
B. equality
E.
affirmative
action
C. civil rights
D. preferential treatment
E. affirmative action
2
2
.
MBO is consistent with a(n) ______
performance appraisal.
A. subordinate
B. trait
C. BARS
D. objective
E. behavioral
D. objective
2
3
.
______ means that anyone can be
dismissed at any time for any reason at
all—or for no reason.
A. Employment at will
B. Capricious dismissal
C. Quid pro quo
D. Non-rational dismissal
E. Fair termination
A.
Employment
at will
2
4
.
The Myers-Briggs Type Indicator is
considered a ______ test.
A. ability
B. character
C. performance
D. personality
E. reliability
D.
personality
2
5
.
______ occurs when people are hired or
promoted—or denied hiring or
promotion—for reasons not relevant to
the job.
A. Affirmative action
B. Discrimination
B.
Discriminati
on
C. A hiring quota
D. Quid pro quo
E. A hostile work environment
26. Passed in 1935, the ______ Act resulted in
the National Labor Relations Board.
A. Wagner
B. Social Security
C. Taft-Hartley
D. Occupational Safety and Health
E. Civil Rights
A. Wagner
27. Performance appraisal consists of
A. managerial and peer feedback.
B. setting standards and monitoring
performance.
C. assessing performance and providing
feedback.
D. motivating and counseling.
E. motivating and monitoring performance.
C. assessing
performance
and providing
feedback.
28. A performance review system in which all
employees within a business unit are
ranked against one another is known as a
A. standard curve.
B. normal distribution.
C. performance positioning.
D. forced ranking.
E. unit grading.
D. forced
ranking.
29. Peter has a degenerative eye disease that
is causing him to gradually lose his
eyesight. When he asked his employer to
purchase him a low vision computer for
use at work, he was instead let go. This
violates provisions of the
D. Americans
with
Disabilities
Act (ADA)
A. Civil Rights Act, Title VII.
B. Patient Protection & Affordable Care Act.
C. Occupational Safety & Health Act
(OSHA).
D. Americans with Disabilities Act (ADA).
E. Privacy Act.
30. Placing information about job vacancies
and qualifications in places where
employees can see them such as on
bulletin boards or the company's intranet is
called
A. job analysis.
B. realistic job previewing.
C. position advertising.
D. recruiting.
E. job posting.
E. job posting.
31. The point of the performance appraisal is to
A. provide a paper trail of manager-
employee interactions.
B. stimulate better job performance.
C. demonstrate correct methods for work
procedures.
D. make sure that the subordinate's
behavior is tightly controlled.
E. avoid legal problems, especially
discrimination complaints.
B. stimulate
better job
performance.
3
2
.
The process of locating and attracting
qualified applicants for jobs open in the
organization is called
A. enlisting.
B. selection.
C. hiring.
D.
recruiting.
D. recruiting.
E. job posting.
3
3
.
The purpose of the strategic human
resource process is to
A. maintain a stable workforce for the
minimum expense.
B. inform the grand strategy.
C. formulate human resource-sensitive
strategic plans.
D. find the human resources needed in a
timely fashion.
E. get optimal work performance to help
realize company's mission and vision.
E. get
optimal
work
performanc
e to help
realize
company's
mission
and vision
3
4
.
Quinton has a difficult employee,
Melissa, with whom he has been dealing
for over a year. Despite repeated
attempts to correct her workplace
behavior, she has not improved. Which
of the following is a good suggestion for
handling this case?
A. Fire Melissa if her poor performance
continues for another year.
B. Fire Melissa effective immediately,
and have her escorted off the premises.
C. Use Melissa's dismissal as an
example to others to increase their
productivity.
D. Dismiss Melissa but offer her
assistance in finding another job.
E. Don't dismiss Melissa because she
needs your sympathy.
D. Dismiss
Melissa but
offer her
assistance
in finding
another
job.
3
5
.
______ refers to educating ______
employees in skills needed to do their
jobs in the future.
A. Training; technical and operational
B. Development; technical and
D.
Developme
nt;
managerial
and
professiona
operational
C. Training; managerial and professional
D. Development; managerial and
professional
E. Orientation; seasoned
l
3
6
.
A report listing your organization's
employees by name, education, training,
languages, and other important
information is called a(n)
A. human resource inventory.
B. labor inventory.
C. skills inventory.
D. personnel inventory.
E. employee inventory.
A. human
resource
inventory
37. The risk of "wrongful termination"
lawsuits is reduced with careful
A. coaching.
B. discussion at the time of dismissal.
C. documentation.
D. employee training.
E. goal setting.
C.
documentation.
38. Sandra is conducting performance
appraisals of members of her sales team.
The report is quite simple; she compares
each person's sales on a quarterly basis
to the goal for that quarter. Sandra is
using a(n) ______ system of appraisal.
A. objective
B. behavioral
C. trait
D. informal
E. 360-degree
A. objective
39. A specialist at UPS that rides with
couriers to learn about delivery times
and potential problems is conducting a
job
A. posting.
B. specification.
C. analysis.
D. description.
E. rotation.
C. analysis
40. The strategic human resource
management process includes which of
these?
A. Plan financial resources needed
B. Identify social capital
C. Establish the grand strategy
D. Investigate competitive job positions
E. Correct underperformance
C. establish the
grand strategy
41. Tomiko, an HR manager, is designing a
training class for those working on
various cross-functional teams within
her company. This class that is aimed at
improving group decision making. What
method of delivery should she choose?
A. Lectures
B. Role plays
C. Workbooks
D. Videotapes
E. Computer-aided training
B. Role plays
4
2
.
Tracy, an HR manager, had a meeting
with the director of operations to
determine if the new training program
appears to be effective in improving
productivity on the shop floor. Tracy is
performing which step of the training
E.
Evaluation
process?
A. Assessment
B. Objectives
C. Selection
D. Implementation
E. Evaluation
4
3
.
The type of appraisal that is most subject
to validity problems due to evaluator bias
is the ______ appraisal.
A. behavioral
B. 360-degree feedback
C. objective
D. results
E. trait
E. trait
4
4
.
The type of interview that is most likely
to cause managers problems because of
its potential for bias and questionable
legality is the
A. realistic job preview.
B. unstructured interview.
C. performance interview.
D. situational interview.
E. behavioral description interview.
B.
unstructur
ed
interview.
4
5
.
The type of performance appraisal that
consists of ratings of subjective
attributes like attitude or leadership is
a(n) ______ appraisal.
A. objective
B. trait
C. behavioral
D. self
E. 360-degree
B. trait
4
6
.
The type of performance appraisal that
judges specific, observable aspects of
performance like being on time for work
is a(n) ______ appraisal
A. results
B. objective
C. trait
D. behavioral
E. MBO
D.
behavioral
47. Using 360-degree feedback appraisals to
trigger pay and personnel decisions puts
______ at risk.
A. trust
B. change
C. feedback
D. performance
E. development
A. trust
48. Viviana is conducting a performance
appraisal for Jeff, one of her subordinates.
The company's performance appraisal form
asks her to rate Jeff's performance on
various items like "Turns in reports on time
with minimal errors." on a scale from 1 to 5.
Viviana's company has a(n) ______
appraisal system.
A. results
B. objective
C. trait
D. BARS
E. MBO
D. BARS
49. What is the final step in the strategic human
resource management process?
A. Plan future human resources needs
B. perform
appraisals of
people
B. Perform appraisals of people
C. Assess success of recruitment process
D. Orient, train and develop people
E. Recruit and select people
50. When Greg interviewed for a position as an
entry-level structural engineer, he was
asked to solve several engineering
problems by hand. This is an example of
a(n)
A. ability test.
B. performance test.
C. aptitude test.
D. personality test.
E. capability test.
B.
performance
test.
51. When Javier became one of three final
candidates for a managerial position with a
large medical supply company, the director
of the department scheduled a special
meeting with him. There, the two talked
about the stressful deadlines and heavy
travel required of the position, as well as the
great compensation and multiple perks.
Javier appreciated that the director took
time to conduct a
A. behavioral-description interview.
B. realistic job preview.
C. unstructured interview.
D. situational interview.
E. performance appraisal.
B. realistic
job preview.
5
2
.
Which of the following
external recruiting methods
works best?
A. Private employment
agencies
B. Employee referrals
B. Employee referrals
C. Newspaper ads
D. College recruiters
E. Unions
5
3
.
Which of the following is a
form of off-the-job training?
A. Planned work activities
B. Classroom instruction
C. Training positions
D. Job rotation
E. Coaching
B. Classroom instruction
5
4
.
Which of the following is a
good suggestion for
managers when conducting
interviews?
A. Ask about the
candidate's family to show
personal interest.
B. The resume should be
used for selection of
interview candidates only;
ignore it thereafter.
C. Do more than half of the
talking to make sure you
are sharing enough about
the company and its
culture.
D. Ask questions
spontaneously to get the
most straightforward
answers from the
candidate.
E. After the interview write a
short report with a
quantitative score of the
candidate's qualifications.
E. After the interview
write a short report with
a quantitative score of
the candidate's
qualifications.
5
5
.
Which of the following is an
example of an employee
benefit?
A. Education
reimbursements
B. Commissions
C. Profit-sharing plans
D. Bonuses
E. Stock options
A. Education
reimbursements
5
6
.
Which of the following is an
on-the-job training method?
A. Role playing
B. Videotapes
C. Job rotation
D. Classroom programs
E. Computer-assisted
instruction
C. Job rotation
57. Which of the following is NOT a
characteristic of a successful incentive
pay plan?
A. Clear goals
B. Regular communication with
employees about the incentive plan
C. Realistic goals
D. Complex and comprehensive rules
E. Consistency with the organization's
existing goals
D. Complex and
comprehensive
rules
58. Which of the following is NOT a
principal reason why an employee may
be transferred?
A. Employee's skills are needed in
another part of the organization
B. To retain employee interest and
C. Employee is
suspected of illegal
behavior
motivation by presenting a new
challenge
C. Employee is suspected of illegal
behavior
D. Employee has a personal
differences with present boss
E. To broaden employee experience
59. Which of the following is NOT a
recommended way to stand out in a
new job?
A. Come in early and stay late to
observe others
B. Underpromise
C. Be aware of the power of first
impressions
D. Make it easy for others to give you
feedback
E. Overdeliver
B. underpromise
60. Which of the following is NOT a type of
compensation?
A. Wages
B. Promotions
C. Incentives
D. Benefits
E. Salaries
B. Promotions
61. Which of the following is NOT
considered, legally, to be an
employment test?
A. Personality tests
B. Interviews
C. Job analyses
D. Application forms
E. Educational requirements
C. Job analyses
6
2
.
Which of the following is the
best statement of feedback?
A. "You're always doing
personal stuff at work."
B. "That's the wrong way to
print that document."
C. "You are really unmotivated
at work lately."
D. "Your last report contained
seven errors which I think you
could improve."
E. "You've got to figure out how
to improve your relationship
with Susie."
D. "Your last report
contained seven
errors which I think
you could improve."
6
3
.
Which of the following is true of
external recruiting, compared to
internal recruiting?
A. It encourages greater
employee loyalty.
B. The process is cheaper.
C. The pool of talent is more
limited.
D. It creates the need for
multiple recruitments.
E. The process takes longer.
E. The process
takes longer.
6
4
.
Which of the following permits
suits against employers for
punitive damages in cases of
intentional discrimination?
A. Civil Rights Act
B. Equal Pay Act
C. Americans with Disabilities
Act
D. Consolidated Omnibus
Budget Reconciliation Act
A. Civil Rights Act
(COBRA)
E. Sarbanes-Oxley Act
6
5
.
Which of the following protects
employees who raise
accusations of fraud to a federal
agency?
A. Privacy Act
B. Civil Rights Act
C. Consolidated Omnibus
Budget Reconciliation Act
(COBRA)
D. Sarbanes-Oxley Act
E. Polygraph Protection Act
D. Sarbanes-Oxley
Act
66. Which of the following requires
employers with more than 50
employees to provide health
insurance?
A. Consolidated Omnibus
Budget Reconciliation Act
(COBRA)
B. Occupational Safety and
Health Act
C. Health Insurance Portability &
Accountability Act (HIPAA)
D. Social Security Act
E. Patient Protection &
Affordable Care Act
E. Patient Protection &
Affordable Care Act
67. Which of the following
statements about background
information is FALSE?
A. Applicants with weak credit
scores are more likely to be
dishonest employees.
B. The most prevalent distortion
in a resume is lying about
A. Applicants with weak
credit scores are more
likely to be dishonest
employees.
education.
C. Many employers don't give
honest assessments of former
employees.
D. People sometimes attempt to
cover gaps in employment
history.
E. People lie about their ages in
their application information.
6
8
.
Which of the following statements about sexual
harassment is true?
A. A hostile work environment brings with it
tangible economic harm.
B. The organization cannot be sued for sexual
harassment as long as its managers did not
know about the situation.
C. A person who feels he/she must acquiesce
to a sexual proposition in order to keep his/her
job is facing a quid pro quo.
D. Uninvited hugging or patting someone is not
considered sexual harassment.
E. Sexual harassment is defined as occurring
between members of the opposite sex.
C. A person who feels he/she must
acquiesce to a sexual proposition in
order to keep his/her job is facing a
quid pro quo.
6
9
.
Which of the following training and
development methods is most appropriate
when people just need to learn facts such as
work rules or legal matters?
A. Videotapes
B. Role plays
C. Practice work
D. Discussion
E. Coaching
A. Videotapes
7
0
.
Which piece of legislation first established the
U.S. federal minimum wage?
C. Fair Labor Standards Act
A. Wagner Act
B. Social Security Act
C. Fair Labor Standards Act
D. Occupational Safety and Health Act
E. Civil Rights Act
1
.
According to Miles and Snow's basic strategy types, a defender
protects its strong position in an industry by constantly seeking new
opportunities for growth
FALSE
2
.
The adaptive cycle portrays businesses as continuously cycling
through three kinds of business decisions: entrepreneurial, ______,
and administrative
A. leadership
B. alignment
C. organization
D. production
E. engineering
E.
engineering
3
.
The administrative part of the adaptive cycle focuses on establishing
roles and organizational processes
TRUE
4
.
After setting goals, managers should next
A. prepare an action plan for accomplishing the goals.
B. propose changes to the goals of same-level managers to bring all
into alignment.
C. supervise subrdinates closely.
A. prepare an
action plan for
accomplishing
the goals.
D. report failure to meet goals to superiors.
E. begin the planning process anew.
5
.
Alita is participating with other division heads in a discussion about
new international competition for the firm and what the organization's
goals should be for the next three years. She is participating in
A. tactical planning.
B. strategic planning.
C. operational planning.
D. controlling.
E. writing a mission statement.
B. strategic
planning.
6
.
Amazon's statement in which it states its desire to "be the earth's
most customer-centric company; to build a place where people can
come to find and discover anything they might want to buy online" is a
mission statement
FALSE
7
.
Apple has a plan to generate buzz for its new products by maintaining secrecy
about them. Apple has learned that strong measures are required to protect
such mysteries, so it has enhanced its security and even fired and sued
employees for leaking news about the products. These efforts would be
considered which part of the planning/control cycle?
A. Making the plan.
B. Carrying out the plan.
D.
Taki
ng
corr
ecti
ve
acti
on.
C. Comparing results.
D. Taking corrective action.
E. Benchmarking competitors.
8
.
As part of the planning process, businesses set what are known as targets,
which are specific commitments to achieve measurable results within a stated
period of time
FAL
SE
9
.
At which level of planning must managers be paying attention to the
environment outside the organization, be future oriented, and deal with
uncertain and competitive conditions?
A. tactical
B. organizational
C. strategic
D. front-line
E. operational
C.
stra
tegi
c
1
0
.
Avon, the world's leading direct seller of beauty products, has a(n) ________
statement, which is "to be the company that best understands and satisfies the
product, service, and self-fulfillment needs of women globally."
A. vision
B. intention
C. goal
A.
visi
on
D. mission
E. rationale
1
1
.
Because it is unrealistic for SMART goals to be accomplished overnight, they
should have target dates
TR
UE
1
2
.
Because of the frequency with which world competition and information
technology alter marketplace conditions, a company's ________ may have to be
done closer to every 1 or 2 years than every 5.
A. management planning
B. strategic planning
C. tactical planning
D. operational planning
E. implementation planning
B.
stra
tegi
c
pla
nni
ng
1
3
.
A bike messenger company that operates in the downtown area of a large city
recently set the following goal: "All deliveries should be completed as quickly
as possible." This example meets the criteria for a SMART goal
FA
LS
E
1
4
.
Blockbuster Video was slow to adapt to the latest trends in its industry, such as
DVD-by-mail and movie downloads online. When it tried to incorporate the same
into its business model, it was well behind competitors like Netflix. Blockbuster
might be defined as a defender, according to Miles and Snow
FA
LS
E
1
5
.
The career path that most resembles the traditional view of climbing the stairs
in a corporate hierarchy is called the linear career
TR
UE
1
6
.
A career that is upwardly mobile, with a number of jobs that are fundamentally
different yet still build on one another is known as a(n) ______ career.
A. steady-state
C.
spi
ral
B. portfolio
C. spiral
D. inclining
E. linear
1
7
.
Cimarron Saddlery expects to improve profitability of the organization by 15%
over the next three years. This is an example of a(n)
A. supervision objective.
B. operational goal.
C. tactical goal.
D. maintenance objective.
E. strategic goal.
E.
str
ate
gic
go
al.
1
8
.
A company producing cameras and video cameras prefers to focus its
resources on a fast imitation program to reverse-engineer new features from
competitors and add those, rather than implementing truly inventive features.
Miles and Snow would call this company a(n)
A. reactor.
B. prospector.
C. analyzer.
D. defender.
E. imitator.
C.
an
aly
zer
.
1
9
.
A company that is an expert at producing and selling narrowly defined products
or services, and which does not tend to seek opportunities outside its present
market is known by Miles and Snow as a(n)
A. defender.
B. analyzer.
C. adaptor.
D. prospector.
E. reactor.
A.
def
en
der
2
0
.
The constant feedback
loop of the ______ is
designed to ensure plans
stay headed in the right
direction.
A. means-end chain
B. planning/control cycle
C. control system
D. project management
method
E. project planning
B. planning/control cycle
sequence
2
1
.
Dayton Construction has a
________ for processing
invoices, which includes
coding them by job
number and construction
phase, and matching them
with the correct purchase
order.
A. program.
B. policy.
C. rule.
D. procedure.
E. project.
D. procedure.
2
2
.
Deadlines can help one
concentrate the mind, in
order to make decisions
rather than put them off
TRUE
2
3
.
Decisions that are
predictable, following a
well-defined set of
procedures, are typical of
operational planning
TRUE
2
4
.
Define the components of
the acronym SMART in
goal setting. Provide an
example of a SMART goal
and demonstrate that it
meets all criteria.
SMART goals are: specific (rather than vague), measurable
(quantifiable), attainable (challenging but realistic and
attainable), results-oriented (support the vision), and with
target dates (deadlines).
An example of a SMART goal is "Ninety percent of planes
should arrive within 15 minutes of the scheduled arrival time
by December 2013."
2
5
.
Describe the
planning/control cycle.
The planning/control cycle has two planning steps (1 and 2)
and two control steps (3 and 4), as follows: (1) Make the
plan. (2) Carry out the plan. (3) Control the direction by
comparing results with the plan. (4) Control the direction by
taking corrective action in two ways—namely, (a) by
correcting deviations in the plan being carried out, or (b) by
improving future plans.
2
6
.
Determining an
organization's mission is
the responsibility of top
management and the
board of directors
TRUE
2
7
.
Discuss the three things that must
happen for MBO to be successful.
For MBO to be successful, three things have to
happen:
1. Top management must be committed. "When top-
management commitment [to MBO] was high," said
one review, "the average gain in productivity was
56%. When commitment was low, the average gain
in productivity was only 6%."
2. It must be applied organizationwide. The program
has to be put in place throughout the entire
organization. That is, it cannot be applied in just
some divisions and departments; it has to be done
in all of them.
3. Objectives must "cascade." MBO works by
cascading objectives down through the organization;
that is, objectives are structured in a unified
hierarchy, becoming more specific at lower levels of
the organization. Top managers set general
organizational objectives, which are translated into
divisional objectives, which are translated into
departmental objectives. The hierarchy ends in
individual objectives set by each employee.
2
8
.
During which managerial function
do you make a blueprint for action
that describes what you need to
do to realize your goals?
A. Organizing
B. Leading
C. Controlling
D. Defining
E. Planning
E. Planning
2
9
.
Eastman Kodak, though it actually
invented the digital camera, was
slow to move into the production
of this product as well as digital
printers. Its continued reliance
untraditional 35mm film
production and processing, which
resulted in its bankruptcy, makes
it a reactor accruing to Miles and
Snow
TRUE
3
0
.
Executive management has
recently decided to acquire a
small company with a
complementary product line, so
Craig, a marketing manager, is
meeting with other managers to
discuss how to implement policies
to support the acquisition over the
next year. He is participating in
A. mission development.
E. tactical planning.
B. strategic planning.
C. controlling.
D. operational planning.
E. tactical planning.
3
1
.
Explain the difference between
standing plans and single-use plans.
Define the three types of standing
plans, the two types of single-use
plans and give examples of each.
Standing plans are plans developed for activities
that occur repeatedly over a period of time.
Standing plans consist of policies, procedures,
and rules.
A policy is a standing plan that outlines the
general response to a designated problem or
situation. Example: "This workplace does not
condone swearing." This policy is a broad
statement that gives managers a general idea
about what is allowable for employees who use
bad language, but gives no specifics.
A procedure (or standard operating procedure)
is a standing plan that outlines the response to
particular problems or circumstances. Example:
White Castle specifies exactly how a hamburger
should be dressed, including the order in which
the mustard, ketchup, and pickles are applied.
A rule is a standing plan that designates specific
required action. Example: "No smoking is
allowed anywhere in the building." This allows
no room for interpretation.
Single-use plans are plans developed for
activities that are not likely to be repeated in the
future. Such plans can be programs or projects.
A program is a single-use plan encompassing a
range of projects or activities. Example: The
U.S. government space program (which was to
be closed by the end of 2010) had several
projects, including the Challenger project and
the Hubble Telescope project.
A project is a single-use plan of less scope and
complexity than a program. Example: The space
shuttle Discovery was one project in the
government's space program.
3
2
.
Explain the different types of planning
for the different levels of
management. Include the typical time
frame for which each plan is created.
Strategic planning is done by top management.
Using their mission and vision statements, top
managers do strategic planning—they
determine what the organization's long-term
goals should be for the next 1-5 years with the
resources they expect to have available. It
should communicate not only general goals
about growth and profits but also ways to
achieve them.
Tactical planning is done by middle
management. The strategic priorities and
policies are then passed down to middle
managers, who must do tactical planning—that
is, they determine what contributions their
departments or similar work units can make with
their given resources during the next 6-24
months.
Operational planning is done by first-line
management. Middle managers then pass these
plans along to first-line managers to do
operational planning—that is, they determine
how to accomplish specific tasks with available
resources within the next 1-52 weeks.
3
3
.
Facebook strives to be on the cutting
edge of social media and is
experiencing phenomenal growth. It
encourages what it calls a "hacker"
TRUE
mindset, always looking to break
down the old in favor of something
better. Of Miles and Snow's basic
strategy types, Facebook would be
described as a prospector.
3
4
.
The first step in an MBO program is
for the manager to set objectives for
her subordinate
FALSE
3
5
.
The first step in the MBO process is to
A. determine rewards for meeting goals.
B. give a performance appraisal.
C. develop an action plan.
D. periodically review performance.
E. jointly set objectives.
E. jointly
set
objective
s.
3
6
.
________ goals are set by and for middle managers and focus on the
actions needed to achieve ________ goals.
A. Strategic; operational
B. Tactical; strategic
C. Strategic; tactical
D. Tactical; operational
B.
Tactical;
strategic
E. Operational; tactical
3
7
.
The goal to "improve the quality of customer service by instituting follow-
up telephone calls this month" is not a SMART goal because it is
A. unlikely to align with higher level goals.
B. not measurable.
C. too simplistic.
D. not results oriented.
E. unlikely to result in improvement to customer service.
B. not
measura
ble.
3
8
.
______ help you ignore extraneous matters in favor of focusing on what's
important, which is realizing the goals on time and on budget.
A. Deadlines
B. Relationships
C. Changes
D. Networks
E. Options
A.
Deadline
s
3
9
.
Hilton Hotel's statement expressing its purpose as
"to fill the earth with the light and warmth of
hospitality" is a(n)
D. mission statement.
A. vision statement.
B. intention statement.
C. goal statement.
D. mission statement.
E. rationale statement.
4
0
.
If a business lacks insight or fails to use the
adaptive cycle properly, it is likely to be which of the
following?
A. A prospector
B. An analyzer
C. A defender
D. A reactor
E. An imitator
D. A reactor
4
1
.
If you are happiest being a "hands-on" professional
rather than becoming a manager, you may prefer
a(n) ______ career.
A. steady-state
B. portfolio
A. steady-state
C. spiral
D. inclining
E. linear
4
2
.
If you do not have all of the information for a
complete plan, you should
A. make decisions based on what you have, since
perfect information is rare.
B. wait until you can get that information to take
action you know will be appropriate.
C. implement two or more courses of action
simultaneously.
D. shrink the plan to limit its scope to only areas
where you have good information.
E. disregard the plan and go with your intuition.
A. make decisions based on
what you have, since perfect
information is rare.
4
3
.
Improving future plans
is part of which step in
the planning/control
cycle?
A. Making the plan.
B. Carrying out the
plan.
D. Controlling the direction.
C. Benchmarking
against competitors.
D. Controlling the
direction.
E. Updating the plan.
4
4
.
In an organization's
approach to planning,
its mission and vision
statements should be
created once the
strategic planning
process is complete
FALSE
4
5
.
In general, planning
has many benefits.
However, planning
also has two cautions
of which one must be
aware. Discuss these.
Planning requires time, including that to involve others
(subordinates, peers, staff, competitors, markets, etc.).
Also, some decisions have to be made without a lot of time.
While you shouldn't shoot from the hip in making decisions, often
you may have to "go with what you've got" and make a decision
based on a plan that is perhaps only three-quarters complete.
Sometimes the need to make a decision quickly outweighs the
benefit of having more complete information.
4
6
.
In MBO, objectives
that employees fail to
meet should be put
aside for the next
period in favor of ones
that they can achieve
FALSE
4
7
.
In order for MBO to be
successful, it must be
implemented
throughout the entire
organization
TRUE
4
8
.
In single-use plans, a
program is another
name for a project
FALSE
4
9
.
In terms of difficulty,
the best goals are
A. just beyond what is
achievable, to
maximize motivation.
B. easy to attain, so
failure will not hurt
morale.
C. challenging but
realistic.
D. impossible to really
reach, because they
are meant only to be
idealistic and
inspirational.
E. easy or hard, since
both work equally well.
C. challenging but realistic.
5
0
.
In the current broadband environment, consumers are able to download
products like music, movies, and books. Netflix was aggressive in
taking advantage of this fact, offering web streaming and game console
access to its customers before competitors. According to Miles and
Snow, Netflix would be a(n)
A. reactor.
B. prospector.
C. analyzer.
B.
prospector.
D. defender.
E. executor.
5
1
.
In the planning/control cycle, carrying out the plan is one of the control
steps
FALSE
5
2
.
In the planning/control cycle, comparing the results with the plan is one
of the control steps
TRUE
5
3
.
In the planning/control cycle, part of the control process can be to
improve future plans
TRUE
5
4
.
In this time of Internet connections and speedy-access computer
databases, one typically has complete information for planning and
decision making
FALSE
5
5
.
Jordan, a sales manager, met with his staff to discuss that they were
only a third of the way to their sales goal, but halfway through the sales
period. He was looking for suggestions to improve second-half
performance. Which part of the planning/control cycle is Jordan doing?
A. Benchmarking against competitors.
B. Controlling the direction.
C. Making the plan.
D. Carrying out the plan.
E. Updating the plan.
B.
Controlling
the
direction.
5
6
.
Kristi has been struggling with her weight, and one of her coworkers
suggested that she make a SMART goal for herself. Which of the
following is the best example of a SMART goal for Kristi?
C. I want to
lose 20
pounds
over the
course of
one
A. I want to lose a lot of weight.
B. I want to look better in a swimsuit.
C. I want to lose 20 pounds over the course of one calendar year.
D. I want to start losing weight soon.
E. I want to lose 30% of my body mass by next month.
calendar
year.
5
7
.
List the four benefits of planning. Planning provides a
means to check on
progress toward
goals.
Planning helps to
coordinate activities
between people
and/or
departments.
Planning helps in
thinking ahead and
anticipating
problems or
opportunities.
Planning helps one
cope with
uncertainty.
5
8
.
Management instituted a new ______ in Yichao's workplace that
"employees who are more than 15 minutes late to work without
calling a supervisor will be given a written warning."
A. policy
B. rule
B. rule
C. procedure
D. project
E. program
5
9
.
Managers at Cimarron Saddlery expect to meet profitability
goals for the company by cutting costs through a 70% increase
in global sourcing of leather and other materials over the next
two years. This is an example of a(n)
A. supervision objective.
B. operational goal.
C. tactical goal.
D. maintenance objective.
E. strategic goal.
C. tactical goal.
6
0
.
A marketing plan is an example of an action plan TRUE
6
1
.
MBO stands for
A. Management by Observation.
B. Management by Objectives.
C. Management by Ownership.
B. Management by
Objectives.
D. Management by Obligation.
E. Management by Organization.
6
2
.
MBO was developed by Frederick Taylor as part of scientific
management
FALSE
6
3
.
MBO works by cascading objectives down through the organization, and these
objectives become more ______ at lower levels of the organization.
A. measurable
B. challenging
C. results-oriented
D. attainable
E. specific
E.
sp
ec
ific
6
4
.
McKesson Corp., a U.S. pharmaceutical distributor, has a(n) ________ statement,
which is "to provide comprehensive pharmacy solutions that improve
productivity, profitability and result in superior patient care and satisfaction."
A. purpose
B. vision
C. intention
E.
mi
ssi
on
D. goal
E. mission
6
5
.
Megan met with her supervisor for a formal review of her job performance over
the past year. Though Megan had agreed to complete five training modules
during the course of the year, she only did two. At this stage, which part of the
planning/control cycle would be applicable to her manager going forward?
A. Carry out the plan.
B. Improve feedback.
C. Correct deviations in the plan.
D. Benchmark against other employees.
E. Improve future plans.
E.
Im
pr
ov
e
fut
ur
e
pl
an
s.
6
6
.
Microsoft has been accused of adapting competitors' products after those firms
spent the resources and took the risks to develop them. Companies with this
strategy are known as analyzers by Miles and Snow
T
R
U
E
6
7
.
Miles and Snow
suggest that
organizations
responding to
uncertainty in the
environment do so
with one of four
approaches. Name and
describe these
approaches, and
provide an example of
each.
Defenders are expert at producing and selling narrowly defined
products or services. Often they are old-line successful
enterprises, such as Macy's and JCPenney, which in the 2010
era of consumer frugality found themselves losing customers to
discounters like Walmart. They do not tend to seek opportunities
outside their present markets. They devote most of their
attention to making refinements in their existing operations, such
as slashing prices.
A company described as "aggressive" is often a Prospector
organization. Prospectors focus on developing new products or
services and in seeking out new markets, rather than waiting for
things to happen. An example of a Prospector company is Gap,
which announced it would look for new sales by expanding
abroad. Another such company is Apple.
Analyzers take a "me too" response to the world. Analyzers let
other organizations take the risks of product development and
marketing and then imitate (or perhaps slightly improve on) what
seems to work best. For years, Microsoft has been accused of
taking this approach.
Reactors make adjustments only when finally forced to by
environmental pressures. In the worst cases, they are so
incapable of responding fast enough that they suffer massive
sales losses and are even driven out of business. Kmart, for
instance, failed to respond to Walmart's development of its
distribution and inventory management competencies, resulting
in stalled growth and a significant reduction in market share.
Kmart's core business never recovered from this reactive
strategy.
6
8
.
A mission statement
expresses what the
organization should
become and where it
wants to go
strategically
FALSE
6
9
.
NASA's Curiosity
Rover, employed to
investigate a large
crater on Mars, is an
example of a
A. policy.
B. rule.
C. project.
C. project.
D. procedure.
E. program.
7
0
.
One type of standing
plan, the __________,
outlines the general
response to a
designated problem or
situation.
A. policy
B. project
C. rule
D. procedure
E. program
A. policy
7
1
.
The operating plan defines the course of action needed to achieve a
stated goal
FALSE
7
2
.
The operating plan identifies clear targets such as revenues and cash
flow
TRUE
7
3
.
Operational goals are set by middle managers and focus on the
actions needed to achieve strategic goals.
FALSE
7
4
.
Operational planning is normally performed by middle management FALSE
7
5
.
An organization's goals arranged in a hierarchy from low level to high
level can be termed a means-end chain
TRUE
7
6
.
Organizationwide, the best structure for objectives in MBO is known
as a diversity pattern
FALSE
7
7
.
Perpetuation objectives are one type of objective used in MBO FALSE
7
8
.
Planning and strategic management derive from an organization's
mission and vision about itself
TRUE
7
9
.
The planning/control cycle has three planning steps and three control
steps
FALSE
8
0
.
Planning gives you expectations against which you can compare your
performance
TRUE
8
1
.
Planning helps managers to cope with events that can be predicted
but id not particularly helpful when conditions are uncertain
FALSE
8
2
.
Planning is defined as
A. formulating a method to allocate resources effectively.
B. motivating employees.
C. coping with obstacles to past performance.
D. setting goals and deciding how to achieve them.
E. implementing strategic goals.
D. setting
goals and
deciding how
to achieve
them
8
3
.
Planning occurs only at the highest levels of an organizations, being
done by top managers
FALSE
8
4
.
Policies, procedures, and rules are types of single-use plans FALSE
8
5
.
A policy includes more specifics that does a rule FALSE
8
6
.
Portia is meeting with her subordinates to determine which workers
from her department need training in order to handle production
increases expected during the next nine months. Portia is involved in
B.
operational
planning.
A. vision development.
B. operational planning.
C. controlling.
D. tactical planning.
E. developing an MBO.
8
7
.
A procedure is a standing plan that outlines the response to particular
problems or circumstances
TRUE
8
8
.
The process of a business cycling through decisions first to select
products and markets, then about producing and delivering the
products, and finally to establish roles and processes is known as the
discovery cycle
FALSE
FALSE
8
9
.
Productivity gains from MBO are higher when an
organization has
A. top-management commitment.
B. few budget problems.
C. team rather than individual performance reviews.
D. union support.
E. nonmanagerial employee support.
A. top-management
commitment.
9
0
.
The purpose of MBO is to motivate subordinates TRUE
9
1
.
The "R" in SMART goal stands for "reachable" FALSE
9
2
.
A single-use plan encompassing a range of projects or
activities is a(n)
A. program.
B. strategy.
C. series.
D. agenda.
E. mission.
A. program.
9
3
.
A SMART goal is one that is
A. specific, maintainable, affordable, realistic, and timely.
B. specific, measurable, attainable, results-oriented, and
has target dates.
C. specific, maintainable, achievement-oriented, in real
time, and timely.
D. specific, measurable, affordable, realistic, and has target
dates.
E. specific, maintainable, aligned with other goals, realistic,
B. specific, measurable,
attainable, results-
oriented, and has target
dates.
and timely.
9
4
.
SMART goals that are challenging yet can be met within the
available scope of time, equipment, and financial support
are known as attainable, the "A" in SMART
TRUE
9
5
.
SMART is an acronym that represents characteristics
necessary to motivate employees in their periodic reviews
FALSE
9
6
.
Southwest Airlines acquisition of rival AirTran Airways may have been
responsible for a sharp decline in on-time arrivals, which is one of
Southwest's ________ goals, supporting a larger goal of being highly
profitable.
A. dependant
B. strategic
C. operational
D. facilities
E. tactical
E. tactical
9
7
.
Southwest Airlines' goal of being highly profitable is a tactical goal FALSE
9
8
.
Southwest Airlines' goal of making arrival times more reliable is a
tactical goal
TRUE
9
9
.
A spiral career path depends on having jobs that, while fundamentally
different, build on one another
TRUE
1
0
0
.
The statement which expresses the purpose of an organization is
called a(n)
A. goal statement.
E. mission
statement.
B. rationale statement.
C. vision statement.
D. intention statement.
E. mission statement.
1
0
1
.
A steady-state career entails a slow-but-steady growth in level of
responsibility and compensation
FALSE
1
0
2
.
Strategic goals focus on objectives for the organization as a whole TRUE
1
0
3
.
Strategic planning determines goals for an organization for a period of
1-5 years
TRUE
1
0
4
.
Sultan is a new manager, and he is using MBO for the first time with
his subordinates. It is essential for Sultan to
A. decide on goals for employees and clearly inform them of these
goals.
B. ask the employee to commit the goals to memory.
C. set goals that are just out of the subordinate's reach.
D. reward employees when they meet objectives.
E. review an employee's performance once, at the end of the
performance period.
D. reward
employees
when they
meet
objectives.
1
0
5
.
Tactical planning is done by first-line managers, who look forward to
the next 1-8 weeks
FALSE
1
0
6
.
There are
three levels
of planning.
Their order,
from first to
last, is
A.
operational,
tactical,
and
strategic.
B.
strategic,
operational,
and
tactical.
C. tactical,
operational,
and
strategic.
D. tactical,
strategic,
and
operational.
E. strategic,
tactical,
and
E. strategic, tactical, and operational.
operational.
1
0
7
.
A transitory
career path
involves a
series of
alternating
promotions
and
demotions
FALSE
1
0
8
.
The U.S.
governmen
t space
program is
an example
of a single-
use plan
TRUE
1
0
9
.
A vision
has a clear
sense of
the future
and the
actions
needed to
get there
TRUE
1
1
0
.
What is
MBO?
Describe
the process
by which
MBO is
done as
well as its
purpose.
Management by objectives (MBO) is a four-step process in which (1)
managers and employees jointly set objectives for the employee, (2)
managers develop action plans, (3) managers and employees periodically
review the employee's performance, and (4) the manager makes a
performance appraisal and rewards the employee according to results. The
purpose of MBO is to motivate rather than control subordinates.
1
1
1
.
What is the time frame of an operational plan?
A. 2-10 years
B. 1-5 years
D.
1-52
wee
ks
C. 6-24 months
D. 1-52 weeks
E. 1-90 days
1
1
2
.
When a firm responds to uncertainty in its environment as a(n) ________, its
continual pursuit of product and market innovation may lead to a loss of
efficiency, but is likely to make competitors nervous.
A. reactor
B. analyzer
C. defender
D. prospector
E. executor
D.
pros
pect
or
1
1
3
.
When White Castle specifies exactly how to dress a hamburger, including the
order of the condiments, this is called a
A. program.
B. policy.
C. rule.
D. procedure.
D.
proc
edur
e.
E. project.
1
1
4
.
Which level of management is most often engaged in tactical planning?
A. Working-level employees
B. First-line managers
C. Middle managers
D. Top managers
E. Consultants
C.
Mid
dle
man
ager
s
1
1
5
.
Which of the following best represents the strategic
planning time frame that Jeff Bezos of Amazon prefers?
A. Six months or less
B. One to two years
C. Three to five years
D. Five to seven years
E. Ten to twenty years
E. Ten to twenty years
1
1
6
.
Which of the following comes LAST when an
organization makes a plan?
A. operational planning
A. operational planning
B. mission statement
C. strategic planning
D. tactical planning
E. vision statement
1
1
7
.
Which of the following is a benefit of planning?
A. Planning allows you to spend little time preparing for
the future.
B. Planning allows you to make all decisions without
consulting superiors.
C. Planning helps you compare your results to your
competitors'.
D. Planning helps the company to be spontaneous.
E. Planning helps you cope with uncertainty.
E. Planning helps you
cope with uncertainty
1
1
8
.
Which of the following is associated with operational
planning?
A. Determining the overall direction of the organization.
B. Examining the environment outside of the
organization.
D. Directing daily tasks of
nonmanagerial personnel.
C. Implementing policies and plans of top management.
D. Directing daily tasks of nonmanagerial personnel.
E. Making decisions under highly uncertain conditions.
1
1
9
.
Which of the following is a type of objective for
MBO?
A. Profitability
B. Personal development
C. Market share
D. Social responsibility
E. Ethics
B. Personal development
1
2
0
.
Which of the following is one of the challenges of
planning?
A. Assigning the right people to tasks.
B. Determining the correct budget.
C. Measuring results with accuracy.
D. Finding the time to plan.
D. Finding the time to plan
E. Motivating employees.
1
2
1
.
Which of the following is one of the organizational
responses organizations make when confronted
with uncertainty, as identified by Miles and Snow?
A. Aggressor
B. Investigator
C. Reactor
D. Planner
E. Leader
C. Reactor
1
2
2
.
Which of the following is the correct order of
planning steps within an organization?
A. Strategic planning, mission statement & vision
statement, operational planning, tactical planning
B. Strategic planning, mission statement & vision
statement, tactical planning, operational planning
C. Strategic planning, operational planning,
mission statement & vision statement, tactical
planning
D. Mission statement & vision statement, strategic
planning, tactical planning, operational planning
D. Mission statement & vision
statement, strategic planning,
tactical planning, operational
planning
E. Mission statement & vision statement, strategic
planning, operational planning, tactical planning
1
2
3
.
Which of the following would best describe MBO?
A. It works at the highest levels of an organization.
B. It works at the lowest levels of an organization.
C. Its purpose is to motivate employees.
D. Its purpose is to control employees.
E. It effectively benchmarks HR practices against
competitors.
C. Its purpose is to motivate
employees.
1
.
A(n) ______________ is susceptible to
legal attack because some questions
may infringe on non-job-related matters
such as privacy, diversity, or disability.
Unstructure
d Interview
2
.
As a sales manager, Danyce is
conducting performance appraisals for
her team members. To do so, she tracks
each person's sales calls, amount of
sales, and revenues on a quarterly
basis. Danyce is using a(n) ______
system of appraisal.
Objective
3
.
As owner and senior accountant at a tax
preparation firm, Mark is changing the
work schedule of all employees,
including managers and accountants,
for the months of March and April, the
company's busiest time. He is requiring
work on weekends for everyone, using
the same basic schedule as last two
hardly upset
or not upset
at all
years. Mark should expect that his
employees will be __________.
4
.
Astrid, a customer service
representative, was asked by one of her
customers if her company would be
interested in joining the chamber of
commerce to meet potential customers.
Astrid believes this is a very good idea
and approached her manager, Alan,
about becoming a chamber member.
Alan told Astrid that "Since the cost of
membership is over $500 and you will
have to leave the office to attend
meetings, I will have to get approval
from management above me." This is an
example of how important decisions are
made in organizations with _____.
Centralized
Authority
5
.
Bethany had a starring role in a film that
was shot in her hometown of Baton
Rouge, Louisiana. Though the Screen
Actors Guild, an actors' union, exists in
Louisiana, Bethany was not required to
join it because of the state's ________
law.
Right to
work
6
.
A California software firm was growing
rapidly and hiring frequently, but
primarily focused on campus recruiting
at UC Berkeley and Stanford. When one
older candidate did not get an interview
after a phone screening, he went to the
company's website and noted all of the
young people in charge. He filed a
discrimination lawsuit based on which
law?
Age
Discriminati
on in
Employment
7
.
creation of products that modify existing
ones
Incremental
Innovation
8. Directive Style Action
Oriented
Decision
makers who
focus on
facts
(LOW
TOLERANC
E FOR
AMBIGUITY
AND ARE
FOCUSED
ON TASK
AND
TECHNICAL
CONCERNS
)
9. Elite Coffee and Bakery, a café that offers a
relaxing environment to enjoy quality
coffees, teas, soups, and other menu items,
has a poster in the front of its restaurants
that reads, "We will always provide a quality
product to help our customers better meet
the challenges of their day and always take
the time to offer caring service one person
at a time." This statement is Elite's ___.
Mission
Statement
10. Elly and Sylvia, owners of Organic Foods,
do not have a formal policy about dress
code and work procedures because they
see their company as a family place that is
enjoyable to work for. Elly and Sylvia
believe that if you treat employees like
family, the company will do well and grow.
These beliefs by the owners of Organic
Foods represent the core values of their
organization's culture, and are known as
____.
Basic
assumptions
11. Employees are likely to see an adaptive
change as __________.
Least
threatening
12. few needs, many customers; broad needs,
few customers; broad needs, many
customers
Strategic
position
emerges
from three
sources:
_____.
1
3
.
George, a longtime hotel manager, was
meeting with Sally, a new manager, and
telling her about a recent decision related
to whether or not to fire a front desk
employee who has had customer service
issues. George discussed the four stages
of the decision process. He said, "I first
identified the problem, and then, I
gathered alternative solutions. I then
evaluated each choice and selected a
solution. I then implemented my decision
to add training. Finally, I followed up with
an evaluation of what I set in place." With
this decision, George is using the
______.
Rational
Decision-
making
model
1
4
.
HIGH TOLERANCE FOR AMBIGUITY AND
FOCUSED ON PEOPLE AND SOCIAL
CONCERNS
Conceptu
al
1
5
.
HP founders David Packard and William
Hewlett created a close-knit
organizational culture that gave a lot of
responsibility to employees and fostered
innovation within the company, which
were clearly stated values of the firm's
founders. This is an example of _____.
Espoused
Values
1
6
.
In an organization, division of labor is
____.
the
arrangem
ent of
having
discrete
parts of a
task done
by
different
people
1
7
.
In the BCG matrix, companies that have
high growth and high market share, and
are definite keepers are ____.
Stars
1
8
.
Jordan, a sales manager, met with his
staff to discuss that they were only a
third of the way to their sales goal, but
halfway through the sales period. He was
Controllin
g the
direction
looking for suggestions to improve
second-half performance. Which part of
the planning/control cycle is Jordan
doing?
1
9
.
Line managers have
authority
to make
decisions
and
usually
have
people
reporting
to them
20. Peter, the owner of Happy Burger,
is involved in the company's
daily decisions and has
established procedures for every
task. The company rules are
clearly specified in the handbook,
and Peter also believes in close
supervision of all employees.
Happy Burger is a(n) _______
organization.
Mechanistic
21. The point of the performance
appraisal is to __________.
stimulate better job
performance
22. Procedure standing plan that
outlines the response to
particular problems or
circumstances
23. products replace existing ones Radical innovations
24. Quality Services is an
organization that operates
several companies that market
food products, restaurant
equipment, and paper and plastic
products, and it even has a
division that counsels restaurant
owners, helping them become
established. Quality Services is
diversification
involved in a _____ strategy.
25. Researchers working on
hydrogen fuel cells hope that this
could be a(n) ______ innovation,
leading to a clean, renewable
energy source, and reducing
dependence on depleting fossil
fuels with their adverse impact
on the global environment.
Radical
26. The Safety Committee, a
temporary team, was established
to make the workplace a safer
place. Members of the committee
still work in their departments
full-time, but meet twice a month
for a few hours as a committee.
This is an example of a ____.
Horizontal Design
27. Scalar Principle lines of authority should
be clear and each
employee's
authority/responsibility
should be distinct
2
8
.
Sparkling Clean, Inc. is considering
implementing a system that will pay its
cleaning workers based on the number
of completed residential jobs, coupled
with satisfactory ratings on random
inspections to ensure quality. This
system is new to the organization, an
example of __________ change.
Innovative
2
9
.
A specialist at UPS who rides with
couriers to learn about delivery time
measurements and potential service
problems is conducting a job
__________________.
Analysis.
3
0
.
Strategic control includes ____. monitoring
the
execution
of strategy
and
making
adjustment
s, if
necessary
3
1
.
Strategic Positioning attempts to
achieve
sustainable
competitive
advantage
by
preserving
what is
distinctive
about a
company
(Unique
and
valuable
position,
Trade-offs
in
competing,
Creating a
fit among
activities)
3
2
.
Strategy formulation is the process of
_____.
choosing
among
different
strategies
and
altering
them to
best fit the
organizatio
n
3
3
.
Successful controlling within an
organization, according to Bossidy and
Charan, demands that managers build a
foundation of controlling using the three
core processes of _____.
people,
strategy,
and
operations
34. The top management of Tasty Foods, a food
distribution company, has set strategic
goals of increasing organizational market
share and also decreasing corporate costs
over the next three years. Greg, a division
manager for Tasty Foods, has looked at his
resources, and decided how his division can
contribute to the two strategic goals set by
upper management. These types of
objectives set by Greg are _____.
tactical goals
35. When Cara interviewed for a position as an
entry-level structural engineer, she was
asked to solve several engineering
problems by hand. This is an example of
a(n)
Performance
Test
36. Which of the following is not a leading
reason that employees resist change?
...
37. Which of the following is not a leading
reason that employees resist change?
lack of
personal
ethics
38. Which of the following is not an inside force
that indicates organizational change might
be needed?
Increased
Competition
39. Which of the following is not a super-trend
shaping the future of business?
information
becoming a
competitive
advantage
1
.
4 types of
organizatio
nal cultures
1) Clan 2) Adhocracy 3) Market 4)
Hierarchy
2
.
accountabili
ty
mangers must report and justify work
results to the mangers above them
3
.
adaptive
perspective
assumes that the most effective cultures
help organizations anticipate and adapt to
environmental changes
4
.
adhocracy
culture
has an external focus and values
flexibility; innovative and creative
5
.
authority rights inherent in a managerial position to
make decisions, give orders, and utilize
resources
6
.
centralized
authority
important decisions are made by higher-
level managers
7
.
clan culture has an internal focus and values flexibility
rather than stability and control
8
.
common
purpose
unifies employees or members and gives
everyone an understanding of the
organization's reason for being.
9
.
contingenc
y design
The process of fitting the organization to
its environment.
1
0
.
coordinated
effort
the coordination of individual efforts into a
group or organization wide effort
1
1
.
customer
divisions
tend to group activities around common
customers or clients
1
2
.
decentralize
d authority
important decisions are made by middle-
level and supervisory-level managers
1
3
.
delegation the process of assigning managerial
authority and responsibility to managers
and employees lower in the hierarchy
1
4
.
divisional
structure
people with diverse occupational
specialties are put together in formal
groups by similar products or services,
customers or clients, or geographical
regions
1
5
.
division of
labor
Division of work into a number of separate
tasks to be performed by different workers
1
6
.
enacted
values
represent the values and norms actually
exhibited in the organization
1
7
.
espoused
values
explicitly stated values and norms that are
preferred by an organization
1
8
.
fit
perspective
assumes that an organization's culture
must align, or fit, with its business or
strategic context
1
9
.
functional
structure
people with similar occupational
specialties are put together in formal
groups
20. geographic
divisions
group activities around defined regional
locations
21. hero person whose accomplishments embody
the value of the organization
22. hierarchy
culture
has an internal focus and values stability
and control over flexibility
23. hierarchy of
authority/chain
of command
control mechanism for making sure the right
people do the right things at the right time
24. line managers have authority to make decisions and
usually have people reporting to them
25. market culture has an strong external focus and values
stability and control
26. matrix structure An organizational design that combines
functional and divisional chains of
command so that there are 2 command
structures- horizontal and vertical
27. mechanistic
organization
authority is centralized, tasks and rules are
clearly specified, and employees are closely
supervised
28. modular
structure
firm assembles product chunks, or
modules, provided by outside contractors
29. mutual benefit
organization
organization composed of voluntary
members, with the purpose of advancing
member's interest (ex: unions & trade
associations)
30. network
structure
the organization has a central core that is
linked to outside independent firms by
computer connections, which are used to
operate as if all were a single organization
(virtual corporations/organizations, hollow
corporation/organization, boundaryless
organization)
31. organic
organization
authority is decentralized, there are fewer
rules and procedures, and networks of
employees are encouraged to cooperate
and respond quickly to unexpected tasks.
32. organizational
culture
system of shared beliefs and values that
develops within an organization and guides
the behavior of its members
33. organizational
structure
A formal system of task and reporting
relationships that coordinates and motivates
organizational members so that they work
together to achieve organizational goals.
3
4
.
organiza
tion
chart
a box and line illustration showing the formal lines of authority and the
organization's official positions or work specializations
3
5
.
product
division
s
group activities around similar products or services.
3
6
.
responsi
bility
obligation you have to perform the tasks assigned to you
3
7
.
rites &
rituals
activities and ceremonies, planned and unplanned, that celebrate important
occasions and accomplishments in the organizations life
3
8
.
simple
structur
e
authority centralized in a single person, a flat hierarchy, few rules, and low work
specialization
3
9
.
span of
control
the number of individuals who report to a given manager
4
0
.
staff
personn
el
have authority functions; they provide advice, recommendations, and research
to line managers
4
1
.
story narrative based on true events which is repeated- and some times embellished
upon- to emphasize a particular value
4
2
.
strength
perspect
ive
assumes that the strength of a corporate culture is related to a firm's long-term
financial performance
4
3
.
symbol an object, act, quality, or event that conveys meaning to others
4
4
.
team-
based
structur
e
teams or workgroups, either temporary or permanent, are used to improve
horizontal relations and solve problems throughout the organization
4
5
.
unity of
comman
d
an employee should report to no more than one mangager
1
.
According to Berkun, the search for wealth is
one of six seeds of innovation.
TR
UE
2
.
According to Lewin, for unfreezing to take place,
people need to become dissatisfied with the old
way of doing things.
TR
UE
3
.
Adaptive change involves introducing a practice
that is new to an industry.
FA
LS
E
4
.
Benchmarking is a technique that can be used
in the refreezing stage of Lewin's change model.
FA
LS
E
5
.
BP handled the 2010 oil spill crisis in the Gulf of
Mexico in a proactive manner.
FA
LS
E
6
.
A change agent is a behavioral sciences
consultant who helps organizations deal with
old problems in new ways.
TR
UE
7
.
Changes in power structures that occur with
administrative and technological changes are
generally embraced by employees because of
the new opportunities they present.
FA
LS
E
8
.
Chicago Cutlery reinstituted a sales contest with
the same rules as the one that it used five years
ago. This is an example of a process innovation.
FA
LS
E
9
.
China and India are changing the way American
companies work, in part, through substantial
labor savings.
TR
UE
1
0
.
Coleman Natural Foods sold natural beef back
when most shoppers were unaware of the term.
This is an example of proactive change
TR
UE
1
1
.
Combined interventions have been found to
work better than single interventions
TR
UE
1
2
.
Conventional electric vehicle batteries use a
liquid electrolyte but an startup is developing a
solid-state lithium-ion battery with improved
stability and lifetime. This is an example of
incremental innovation.
TR
UE
1
3
.
Demassification refers to a trend of customer
groups being segmented into smaller,
specialized groups responding to narrowly
targeted messages.
TR
UE
1
4
.
During the refreezing stage of Lewin's change
model, managers should model the change
themselves, as well as coach employees and
reinforce the desired behaviors.
TR
UE
1
5
.
An effective way to deal with change is to allow
grieving over the loss of old ways.
TR
UE
1
6
.
Employee problems are one type of outside
force for change in the organization
FA
LS
E
1
7
.
Entrepreneurs tend to be tolerant of ambiguity. TR
UE
18. The first step of the OD process is evaluation,
which uses employee surveys, interviews, and
observation to ascertain attitudes and problem
areas
FALS
E
19. The four areas in which change is most apt to be
needed are people, technology, structure, and
strategy.
TRUE
20. Greenwashing is converting production to more
environmentally-sensitive outputs in response to
external trends in environmentalism.
FALS
E
21. Hard data about absenteeism, turnover, and
profitability is used in the intervention stage of the
FALS
OD process. E
22. In 1961, Procter & Gamble introduced the first
affordable, readily-available disposable diaper
called Pampers. At that time, Pampers were an
example of a radical innovation.
TRUE
23. In a survey of U.S. corporate managers, the
majority believe that their organizations could be
respected for leadership in the area of innovation
and creativity.
FALS
E
24. Information is rapidly becoming the new
competitive advantage.
FALS
E
25. Innovation can be fostered by withholding raises
or promotions from those whose attempts to
innovate are not successful
FALS
E
26. Innovation differs from creativity or invention in
that it requires useful application.
TRUE
27. Innovation most often happens in a "eureka"
moment of epiphany.
FALS
E
28. Innovative change is the introduction of a practice
that is new to the organization.
TRUE
29. Innovative change is the least threatening type of
change and is therefore least likely to create
resistance.
FALS
E
30. Intervention is the treatment phase of OD in which
problems are corrected
TRUE
31. In the context of change, technology means
computer technology used to gain a competitive
advantage.
FALS
E
32. In the OD process, feedback is used to refine the
diagnosis.
TRUE
33. In the refreezing stage of change of Lewin's
change model, employees need to be given new
information, perspectives and models for behavior.
FALS
E
34. Job dissatisfaction within an organization can be
an indicator that change is needed.
TRUE
3
5
.
Kotter's change step of anchoring new
approaches in the culture corresponds to
refreezing in Lewin's model.
TR
UE
3
6
.
Kotter's research reveals that management of
organizational change is more essential than
leadership around it.
FA
LS
E
3
7
.
Managers' behavior is one type of inside force
for change in the organization
TR
UE
3
8
.
The marketplace is becoming more
homogeneous and moving toward more similar
products.
FA
LS
E
3
9
.
Mistrust between change agents and employees
can cause failure of well-conceived changes.
TR
UE
4
0
.
The most complex, costly and uncertain kind of
change is known as radically innovative change
TR
UE
4
1
.
The most effective way to handle rewards for
innovation is to provide them at the end of a
successful project
FA
LS
E
4
2
.
Most organizations experience innovation as a
matter of course; it happens naturally as part of
everyday business
FA
LS
E
4
3
.
The need for change comes solely outside from
the organization.
FA
LS
E
4
4
.
OD concentrates on processes such as
communication and conflict management.
TR
UE
4
5
.
OD focuses specifically on the technology
aspects of change.
FA
LS
E
4
6
.
An OD intervention that worked in the U.S. is
likely to work equally well around the world
because the practices are very fundamental to
human nature.
FA
LS
E
4
7
.
One of the primary situations in which OD is
used is when adapting to mergers.
TR
UE
4
8
One of the reasons employees resist change is TR
.fear of the unknown. UE
4
9
.
One step for fostering innovation is gaining
allies by communicating your vision.
TR
UE
5
0
.
An organizational culture that celebrates failure
helps foster innovation
TR
UE
5
1
.
Patagonia was satisfied with its OD intervention
to become greener.
FA
LS
E
5
2
.
People are generally comfortable with and
embrace change, even change in apparently
major matters.
FA
LS
E
5
3
.
People changes in an organization are not
required until that organization reaches about
20 people in size, when the level of
specialization reaches a critical point.
FA
LS
E
5
4
.
Proactive change involves making carefully
thought-out changes in anticipation of possible
or expected problems or opportunities.
TR
UE
55. A product innovation is a change in the way a
product or service is conceived, manufactured, or
disseminated.
FALS
E
56. Putting an end to servant leadership is a change
that is likely to improve manager-employee
relationships.
FALS
E
57. Radical innovation is the creation of products,
services, or technologies that replace existing
ones.
TRUE
58. Reactive change is carefully thought-out. FALS
E
59. The recent structural trend is toward a taller
organizational hierarchy.
FALS
E
60. Sabotage can be a form of resistance to change in
the workplace.
TRUE
61. Secondhand shops suffering from a recession-
induced decline in thrift store donations is an
example of an outside force for organizational
TRUE
change.
62. Speed is emerging as a competitive weapon as
novel fast-to-market strategies offer an important
advantage.
TRUE
63. Successful large companies are more able than
other firms to survive and prosper in an
environment of radically innovative change.
FALS
E
64. The three steps of the OD process are diagnosis,
intervention, and adaptation
FALS
E
65. Three ways to encourage innovation are by
providing the right organizational culture, the
appropriate resources, and creative talent.
FALS
E
66. Too much knowledge and experience can kill
innovation.
TRUE
67. The two types of change are practical and reactive. FALS
E
1
.
According to Bossidy and Charan, effective ______ requires managers to
build a foundation for it within three core process: people, strategy, and
operations.
A. tactical planning
B. strategy
C. follow-through
D. execution
E. controlling
D.
executio
n
2
.
According to Bossidy and Charan, which business process is most
important for effective execution?
B.
People
A. Strategy
B. People
C. Alignment
D. Operations
E. Research
3
.
According to Burt Nanus, good vision statements are useful because they
help people to consider all interesting elements in their environments
FALSE
4
.
Actively selling strategic plans to middle and supervisory managers, rather
than just announcing them, is helpful for
A. situation analysis.
B. strategy formulation.
C. strategy implementation.
D. contingency planning.
E. strategic control.
C.
strategy
impleme
ntation.
5
.
After film manufacturer Kodak failed to reinvent itself and declared
bankruptcy in 2012, it decided to focus on its business of making inkjet
printers as part of a ______ strategy.
A. growth
C.
defensiv
e
B. stability
C. defensive
D. reorganization
E. reactor
6
.
After the assessment of current organizational performance, the
subsequent explanation of how its mission is to be accomplished is called
a comprehensive strategy
FALSE
7
.
Alaska Airline was profitable in 2011, prompting is to decide to
remain a "smallish, specialized, regional airline in a world of
global giants," which is an example of a stability strategy
TRUE
8
.
Alexis has prepared a report that details how prices for several
raw materials her firm uses in production have risen by up to 30%
in the last year. Her report would be an input into the __________
part of a SWOT analysis.
A. strengths
B. weaknesses
C. opportunities
D. threats
E. structure
D. threats
9
.
Amanda has just determined that her employees will require
extensive training if they are to acquire the necessary
technological expertise to produce a new product line. She has
discovered one of her firm's
B. weaknesses.
A. strengths.
B. weaknesses.
C. opportunities.
D. threats.
E. market challenges.
1
0
.
Analysis of changing demographics of the U.S. population would
be part of the assessment of a company's
A. strengths.
B. weaknesses.
C. opportunities.
D. threats.
E. opportunities or threats depending on the outcome of the
analysis.
E. opportunities or
threats depending
on the outcome of
the analysis.
1
1
.
Anne runs a small bakery on the main street of a resort
town. Though hers was the only bakery around, the
business had been suffering during the economic
slowdown, and she was contemplating whether she should
attempt strategic planning. Anne should be aware of what
research finding regarding strategic planning?
E. Both small and large
firms benefit from
strategic planning, but
the small improvement in
performance may not be
worth the effort for small
firms.
A. Only large firms show performance gains from strategic
planning.
B. Only small firms show performance gains from strategic
planning.
C. Performance gains from strategic planning are equal
among small and large firms.
D. Both small and large firms benefit from strategic
planning, but small firms get a larger boost in performance.
E. Both small and large firms benefit from strategic
planning, but the small improvement in performance may
not be worth the effort for small firms.
1
2
.
Apple's iPad has a very high percentage of the market for
tablet computers, and this is also a quickly growing market.
Thus, using the BCG matrix, the iPad would be classified
as a
A. star.
B. cloud.
C. question mark.
D. cash cow.
E. dog.
A. star.
1
3
.
Bad planning is usually a result of top managers' inability
to gather enough information
FALSE
1
4
.
The BCG matrix is a means of evaluating strategic
business units on the basis of both their business growth
rates and their profitability
FALSE
1
5
.
The benefit of the single-product strategy for a company is
A. synergy.
B. focus.
C. isolated systems.
D. differentiation.
E. lower costs.
B. focus.
1
6
.
Bossidy and Charan believe that to excel at execution, a leader
should
A. be hands-off once the strategy is set.
B. micromanage the tactics.
C. empower employees to take over the execution.
D. probe for weaknesses in the substance and details.
E. let the plan run its course before attempting to revise it.
D. probe for
weaknesses in the
substance and
details.
1
7
.
Burberry makes outerwear, accessories like umbrellas, and
children's clothing, which is called a related diversification
strategy.
TRUE
1
8
.
A business plan is a document with the purpose of outlining a
proposed firm's profit and loss statements for its first operating
cycle
FALSE
1
9
.
Careful monitoring of an organization's internal and external
environment to detect early signs of opportunities and threats
that may influence the firm's plans is called
A. competitive intelligence.
B. forecasting.
C. contingency planning.
D. trend analysis.
E. environmental scanning.
E. environmental
scanning.
2
0
.
Cash cows in the BCG matrix have slow growth but high market
share
TRUE
2
1
.
A common challenge to strategy implementation is resistance by
people within the organization
TRUE
2
2
.
The common grand strategies are
A. star, question mark, cash cow, and dog.
B. cost-leadership, differentiation, cost focus, and focused
differentiation.
C. growth, stability, and defensive.
C. growth,
stability, and
defensive.
D. strengths, weaknesses, opportunities, and threats.
E. defender, prospector, analyzer, and reactor.
2
3
.
A company must be able to execute three core processes of
business including people, products, and administration
FALSE
2
4
.
Computer technology corporation Dell recently acquired Quest software, an IT
management software provider, in order to expand upon its software
expertise and offerings. Dell is pursuing a(n) ______ strategy.
A. escalation
B. growth
C. stability
D. merger
E. defensive
B.
growt
h
2
5
.
______ consists of monitoring the execution of strategy and making
adjustments, if necessary.
A. Mission translation
B. Strategic control
C. Strategy implementation
D. Contingency planning
B.
Strat
egic
contr
ol
E. SWOT analysis
2
6
.
Consumers can use a national company called Service Magic to receive bids
from quality providers of a variety of services, including home remodel,
landscaping, plumbing, and housecleaning. Service Magic charges service
providers for the leads it provides to them monthly. Which of the following is
the source of Service Magic's strategic position?
A. Low-profit margin and many customers.
B. Broad needs and few customers.
C. Broad needs and many customers.
D. High-profit margin and many customers.
E. High-profit margin and few customers.
C.
Broa
d
need
s and
many
custo
mers.
2
7
.
Contingency planning can also be called scenario analysis TRU
E
2
8
.
Contingency planning is a hypothetical extension of a past series of events
into the future
FALS
E
2
9
.
A continuity strategy is the common grand strategy that involves little or no
significant change
FALS
E
3
0
.
Creation of alternative hypothetical but equally likely future conditions is
called
A. contingency planning.
B. trend analysis.
C. balancing the scorecard.
A.
conti
ngen
cy
plann
ing.
D. strategy formulation.
E. forecasting.
3
1
.
Daniel is assessing his
company's portfolio of
products. One of them is
the best-selling brand of
mayonnaise, although this
is now a slow-growing
market. If Daniel uses the
BCG matrix, he would
classify this product as a
star.
B. cloud.
C. question mark.
D. cash cow.
E. dog.
D. cash cow.
3
2
.
A defensive strategy is
sometimes called a
retrenchment strategy
TRUE
3
3
.
Define competitive
intelligence and explain
how you might go about
obtaining it legally
Competitive intelligence means gaining information about
one's competitors' activities so that one can anticipate their
moves and react appropriately. Gaining competitive
intelligence isn't always easy, but there are several avenues
and most of them are public sources including (1) the public
prints and advertising, (2) investor information like corporate
annual reports, and (3) informal sources such as trade show
gossip and information from company salespeople.
3
4
Define forecasting and Forecasting is developing a vision or projection of the future,
.discuss its importance.
Describe the two types of
forecasting described in
the text.
which is a necessary component of strategic planning. The
two types are trend analysis and contingency planning.
Trend analysis is a hypothetical extension of a past series of
events into the future. Contingency planning is the creation
of alternative hypothetical but equally likely future conditions.
3
5
.
Define strategic
positioning. Explain the
three principles that
underlie strategic
positioning
Strategic positioning attempts to achieve sustainable
competitive advantage by preserving what is distinctive
about a company. It means, according to Porter, "performing
different activities from rivals, or performing similar activities
in different ways."
Three key principles underlie strategic positioning:
Strategy is the creation of a unique and valuable position,
which emerges from three sources: few needs, many
customers; broad needs, few customers; or broad needs,
many customers.
Strategy requires trade-offs in competing. A company has to
choose not only what strategy to follow but what strategy not
to follow.
Strategy involves creating a "fit" among activities. "Fit" has to
do with the ways a company's activities interact and reinforce
one another.
3
6
.
Describe Porter's four competitive
strategies and explain how they differ
from each other. Provide an example of
a firm that might use each
Porter identified two "wide" strategies (cost-
leadership and differentiation) that deal with
broad markets, and two "narrow" strategies
(cost-focus and focused-differentiation) that
target specific markets.
1. Cost-leadership focuses on keeping costs
and prices low for a wide market, and
examples are Dell, Timex, Home Depot, and
Bic.
2. Differentiation stresses offering unique and
superior products and services to a wide
market and examples include Ritz-Carlton,
Lexus, and PepsiCo.
3. Cost-focus emphasizes keeping low costs
and prices, but to a narrow market and
examples include low-cost products sold at
discount store and discount regional gas
station chains.
4. Focused-differentiation stresses unique and
superior products to a narrow market and
examples include Rolls Royce, Cartier,
Turnbull & Asser, and niche books.
3
7
.
Describe the strategic management
process. Explain what the "feedback
loop" is and why it is important. The
strategic management process involves
five steps:
1. Establish the mission and vision.
2. Establish the grand strategy.
3. Formulate the strategic plans.
4. Carry out the strategic plans.
5. Maintain strategic control.
The strategic management process involves
five steps:
1. Establish the mission and vision.
2. Establish the grand strategy.
3. Formulate the strategic plans.
4. Carry out the strategic plans.
5. Maintain strategic control.
The feedback loop comes out of strategic
control. Through control, managers monitor
progress and take corrective action early and
rapidly when things go awry, returning to
earlier steps to fix problems.
3
8
.
Describe what determines
competitiveness within a particular
industry using Porter's model for
industry analysis. Provide an example
for at least three of the five forces in the
model
Competitiveness within a particular industry
originates in the five primary competitive
forces in the firm's environment:
1. Threats of new entrants: for Kraft, new
entrants might be store brands or Annie's.
2. Bargaining power of suppliers: companies
without multiple suppliers are at the mercy of
the one.
3. Bargaining power of buyers: customers who
use the Internet to shop around are more able
to negotiate a better price.
4. Threats of substitute products or services:
for big oil companies, firms making ethanol
provide a substitute product.
5. Rivalry among competitors: for Coca-Cola,
Pepsi is an established rival.
3
9
.
A development strategy is the common
grand strategy that involves expansion
FALSE
4
0
.
Effective strategic management involves
A. only top management.
B. only top and middle management.
C. only middle and lower management levels.
D. only lower management level.
E. managers from all parts of the organization.
E. managers from all parts
of the organization.
4
1
.
Environmental factors that the organization may exploit
for a competitive advantage are known as
A. organizational strengths.
B. organizational opportunities.
C. organizational threats.
D. organizational weaknesses.
B. organizational
opportunities.
E. competitive strategies.
4
2
.
An example of a firm that pursues a differentiation
strategy is
A. Cartier.
B. Lexus.
C. Bic.
D. A regional discount gas station chain.
E. Home Depot.
C. Bic.
4
3
.
Execution is tactical in nature, rather than part of a
company's strategy
FALSE
4
4
.
Explain
strategy
implementati
on,
including
the role of
resistance
Putting strategic plans into effect is strategy implementation. Strategy
implementation is the stage of the strategic management process where
managers determine possible roadblocks within the organization and see if
the right people and control systems are available to execute the plans.
Resistance may be encountered when people feel the plans threaten their
livelihoods or their influence. This is especially true when plans are being
implemented quickly, as delays (a form of resistance) can easily be
constructed and these delays may heavily damage a plan. Thus, top
managers can't just announce the plans; they have to actively sell them to
middle and supervisory managers
4
5
.
Explain the
positive and
negative
aspects of
pursuing a
single-
product
strategy
versus a
In a single-product strategy, a company makes and sells only one product
within its market. Making just one product allows you to focus your
manufacturing and marketing efforts just on that product. This means that
your company can become savvy about repairing defects, upgrading
production lines, scouting the competition, and doing highly focused
advertising and sales. The risk, of course, is that if you do not focus on all
aspects of the business, if a rival gets the jump on you, or if an act of God
intervenes (for a florist, roses suffer a blight right before Mother's Day), your
entire business may go under. The single-product strategy is seen all the
diversificatio
n one.
Provide an
example of a
company
that uses
each type of
strategy
time as you drive past the small retail businesses in a small town: There
may be one shop that sells only flowers, one that sells only security
systems, and so on.
Diversification is operating several businesses in order to spread the risk.
Diversification may be related or unrelated. Related diversification has three
advantages: reduced risk—because if one product is weak, others may take
up the slack, management efficiencies—because administration is spread
over several businesses, and synergy, that the sum is greater than the
parts. You see the diversification strategy at the small retailer level when
you drive past a store that sells gas and food and souvenirs and rents DVD
movies
4
6
.
Explain the
three core
processes of
business
and how
they relate
to execution
A company's overall ability to execute is a function of effectively executing in
terms of its people processes, strategic processes, and operational
processes.
People process: An effective leader tries to evaluate talent by linking people
to particular strategic milestones, developing future leaders, dealing with
nonperformers, and transforming the mission and operations of the human
resource department.
Strategic processes: A good strategic plan addresses nine questions. In
considering whether the organization can execute the strategy, a leader
must take a realistic and critical view of its capabilities and competencies.
Operations processes: The strategy process defines where an organization
wants to go, and the people process defines who's going to get it done.
Operations or the operating plan provides the path for people to follow. The
operating plan should address all the major activities in which the company
will engage and then define short-term objectives for these activities, to
provide targets for people at which to aim.
4
7
.
Faisal has been running a commercial real estate business for nearly 30 years.
As he approaches retirement, he is content to simply lease the commercial
space he currently has, rather than make new deals to develop additional
properties. Faisal is using which grand strategy?
A.
Sta
bilit
y
A. Stability
B. Retrenchment
C. Inducement
D. Defensive
E. Growth
4
8
.
"Find out what customers want, then provide it to them as cheaply and quickly
as possible" is Walmart's
A. growth plan.
B. technical plan.
C. synergy.
D. strategy.
E. forecast.
D.
stra
teg
y.
4
9
.
A fine luggage maker was struggling with heavy debt and a sharp decline in
customers, and it eventually declared bankruptcy. The company followed which
grand strategy?
A. Growth
B. Stability
C.
Def
ens
ive
C. Defensive
D. Reduction
E. Reactive
5
0
.
The first step of the strategic-management process is to establish the grand
strategy
FAL
SE
5
1
.
Ford's Sync in-dash communications platform, despite its high level of
technology, has been unable to provide the company with a distinct competitive
advantage
FAL
SE
5
2
.
Forecasting is a strategic-planning tool used to make long-term strategy TR
UE
5
3
.
Formal business plans can be dangerous to the survival of new businesses;
many who try them fail because of the resources required to write and agree
upon the plan.
FAL
SE
5
4
.
Gaining information about one's
competitors' activities so that you can
anticipate their moves and react
appropriately is called
A. strategic forecasting.
B. corporate espionage.
C. contingency planning.
D. trend analysis.
E. competitive intelligence.
E. competitive intelligence.
5
5
.
General Electric sells lighting products and
is also involved in plastics, broadcasting,
and financial services. GE uses a related
diversification strategy
FALSE
5
6
.
Give examples of what managers might look
at in performing each element of a SWOT
analysis. SWOT analysis—also known as a
situational analysis—is a search for the
strengths, weaknesses, opportunities, and
threats affecting the organization.
Examples of a firm's strengths and
weaknesses: work processes, organization,
culture, staff, product quality, production
capacity, image, financial resources and
requirements, service levels, other internal
matters.
SWOT analysis—also known as a
situational analysis—is a search for the
strengths, weaknesses, opportunities,
and threats affecting the organization.
Examples of a firm's strengths and
weaknesses: work processes,
organization, culture, staff, product
quality, production capacity, image,
financial resources and requirements,
service levels, other internal matters.
Examples of a firm's opportunities and
threats: market segment analysis,
industry and competition analysis, impact
of technology on organization, product
analysis, governmental impacts, other
external matters (see Figure 6.2).
5
7
.
Good strategy allows a company to be
everything to everyone
FALSE
5
8
.
A good vision statement should describe a
company's major strengths and competitive
advantage in its industry
FALSE
5
9
.
A grand strategy can be established using
tools like SWOT analysis and forecasting
TRUE
6
0
.
A grand strategy that involves reduction in
the organization's efforts is the ______
strategy.
A. retrenchment
B. reorganization
A. retrenchment
C. downsizing
D. growth
E. stability
6
1
.
Guthrie Community College has done a
SWOT analysis and discovered that the
number of college-bound high-school
juniors in its state has grown by nearly 20%
in the past few years. This is a strength for
Guthrie
FALSE
6
2
.
Harvard Business School professor Michael Porter is a leading authority on
competitive strategy
TR
UE
6
3
.
High Peaks Skate and Snowboard is a small shop that provides equipment for
Utah snowboarders in winter months. It has decided to increase advertising
during this period in the Salt Lake Tribune and the Park Record in Park City, as
well as to sponsor a new on-mountain competition. It is following which
strategy?
A. Inducement
B. Defensive
C. Growth
D. Stability
E. Enhancement
C.
Gro
wth
6
4
.
In a cost-leadership strategy, an organization targets a wide market and offers
products or services of unique and superior value compared to competitors
FAL
SE
6
5
.
In a world of rapid and discontinuous change, the ability to please
nonmanagerial employees has been called the golden trait among managers
FAL
SE
6
6
.
In Porter's model for industry analysis, there are three primary competitive
forces in a firm's environment
FAL
SE
6
7
.
Insisting on realism is among the leader behaviors that help a manager
successfully execute a strategy
TR
UE
6
8
.
An Iowa ethanol production company has been suffering from a combination of
lower demand for gasoline (into which its product is mixed) and higher corn
prices (which is the largest input cost). It has responded by selling off land,
buildings, and some of its reserve product inventory. This is a variation of
which of these grand strategies?
A. Right-size
B. Growth
C. Stability
D. Defensive
E. Reorganization
D.
Def
ens
ive
6
9
.
Kraft Macaroni & Cheese is now challenged by new competitors such as
Annie's and other store brands, which Porter's model for industry analysis calls
the threat of new entrants
TR
UE
7
0
.
List at least five of the seven essential types of leader
behaviors that are needed to fuel the engine of execution
The seven essential
types of leader
behaviors are:
1. Know your people
and your business:
engage intensely with
your employees.
2. Insist on realism:
don't let others avoid
reality.
3. Set clear goals and
priorities: focus on a few
rather than many goals.
4. Follow through:
establish accountability
and check on results.
5. Reward the doers:
show top performers
that they matter.
6. Expand people's
capabilities: develop the
talent.
7. Know yourself: do the
hard work of
understanding who you
are.
7
1
.
Luxury carmaker Rolls-Royce has a focused-differentiation
strategy
TRUE
7
2
.
Management of a small company in an industry that is not
very competitive should not engage in strategic planning
because the small gains in performance may not be worth
the effort
TRUE
7
3
.
A manager assessing the organization's access to capital is
involved in analysis of
A. strengths.
B. weaknesses.
C. opportunities.
D. threats.
E. strengths or
weaknesses depending
on the outcome of the
assessment.
E. strengths or weaknesses depending on the outcome of
the assessment.
7
4
.
Managers must be willing to make large, painful decisions to
suddenly alter strategy
TRUE
7
5
.
Managers who execute well insist on constant optimism FALSE
7
6
.
Many good mission statements include descriptions of an
organization's customers, as well as its major products or
services
TRUE
7
7
.
__________ means performing different activities from rivals
or performing similar ones in different ways.
A. Competitive planning
B. Distinctive positioning
C. Collaborative planning
D. Strategic segmentation
E. Strategic positioning
E. Strategic positioning
7
8
.
Milo owns and
manages a small
bike repair store. In
order to determine if
strategic planning
will be likely to help
his business, Milo
should primarily
assess
A. how many
A. how many competitors he has.
competitors he has.
B. foot traffic by his
location.
C. his profitability in
the prior six months.
D. industry trends.
E. how much he
intends to grow in
the next five years.
7
9
.
A mission statement
should be ambitious
FALSE
8
0
.
Name the three
common grand
strategies and
provide an example
of how a company
might use each.
There are the three common grand strategies:
1. A growth strategy is a grand strategy that involves expansion—
as in sales revenues, market share, number of employees, or
number of customers or (for nonprofits) clients served. Examples: It
can improve an existing product or service to attract more buyers. It
can increase its promotion and marketing efforts to try to expand its
market share. It can expand into new products or services. It can
acquire similar or complementary businesses.
2. A stability strategy is a grand strategy that involves little or no
significant change. Examples: It can go for a no-change strategy (if,
for example, it has found that too-fast growth leads to foul-ups with
orders and customer complaints). It can go for a little-change
strategy (if, for example, the company has been growing at
breakneck speed and feels it needs a period of consolidation).
3. A defensive strategy, or a retrenchment strategy, is a grand
strategy that involves reduction in the organization's efforts.
Examples: It can reduce costs, as by freezing hiring or tightening
expenses. It can sell off (liquidate) assets—land, buildings,
inventories, and the like. It can gradually phase out product lines or
services. It can declare bankruptcy.
8
1
.
Obsolete technology
and outdated
facilities are
examples of
organizational
threats
FALSE
8
2
.
Oil companies must be aware of other firms' development of ethanol
products since this is an example of which one force in Porter's
model for industry analysis?
A. Bargaining power of buyers.
B. Rivalry among competitors.
C. Bargaining power of suppliers.
D. Threats of new entrants.
E. Threats of substitute products and services.
E. Threats of
substitute
products and
services.
8
3
.
One of the ways to keep a strategic plan on track is to make it very
comprehensive, covering as many scenarios for the future as you can
FALSE
8
4
.
Organizational threats are the environmental factors that hinder an
organization's ability to achieve a competitive advantage
TRUE
8
5
.
An organization is developing a low-cost line of environmentally
friendly cleaning products that it intends to distribute internationally.
Here, the organization is following a ______ strategy.
A. cost leadership
B. differentiation
A. cost
leadership
C. cost focus
D. retrenchment
E. focused-differentiation
8
6
.
An organization should adopt strategic management and strategic
planning to encourage new ideas
TRUE
8
7
.
Organizations may turn to the strategic-management process after a
crisis
TRUE
8
8
.
An organization that is offering unique, superior products or services
to a wide market is pursuing a strategy of
A. cost leadership.
B. differentiation.
C. cost focus.
D. diversification.
E. focused differentiation.
B.
differentiation.
8
9
.
An organization that keeps costs and prices low in
targeting a narrow market is pursuing a strategy of
A. cost leadership.
B. differentiation.
C. cost focus.
C. cost focus.
D. stability.
E. focused differentiation.
9
0
.
An organization that offers unique, superior products or
services to a narrow market is pursuing a strategy of
A. cost leadership.
B. differentiation.
C. cost focus.
D. diversification.
E. focused differentiation.
E. focused differentiation.
9
1
.
Planning is usually a straightjacket for new ideas, since it
effectively blocks peripheral vision in favor of a
predetermined course
FALSE
9
2
.
Porter's competitive strategies include
A. prospector, defender, analyzer, and reactor.
B. growth, stability, and retrenchment.
C. cost leadership, differentiation, cost focus, and focused
differentiation.
D. strengths, weaknesses, opportunities, and threats.
C. cost leadership,
differentiation, cost focus,
and focused
differentiation.
E. stars, questions marks, cash cows, and dogs.
9
3
.
The primary purpose of competitive intelligence is to
challenge the thinking of employees to make them better
equipped to produce novel ideas for business
FALSE
9
4
.
The process of choosing among different strategies and
altering them to best fit the organization is called
A. strategy formulation.
B. contingency planning.
C. strategic control.
D. strategy implementation.
E. trend analysis.
A. strategy formulation.
9
5
.
Rafaela is interested in learning more about what one of her competitors is
doing so that she can anticipate its upcoming moves and react quickly. Which
of the following would you suggest to her for this purpose?
A. Go through the competitor's trash on its property.
B. Pose as an applicant for a job with the competitor.
C. Use investor information.
D. Call the competitor, explain who you are, and ask directly.
C.
Use
invest
or
infor
matio
n.
E. Pay the competitor's customers for information.
9
6
.
Recently ConocoPhillips, America's third-biggest oil company, spun off its
refineries, pipelines, and chemicals division to form a new company called
Phillips 66. Now ConocoPhillips will concentrate on its upstream operations.
This is a variation of which of these grand strategies?
A. Right-size
B. Growth
C. Stability
D. Defensive
E. Reorganization
D.
Defen
sive
9
7
.
A recent survey found that the top concern among CEOs worldwide is
A. profit growth.
B. customer loyalty.
C. excellence in execution.
D. stimulating innovation.
E. finding qualified employees.
C.
excell
ence
in
execu
tion.
9
8
.
__________ refers to the idea that the economic value of separate, related
businesses under one ownership and management is greater together than
the businesses are worth separately.
B.
Syner
gy
A. Structural benefit
B. Synergy
C. Selective function
D. Alignment
E. Consolidation
9
9
.
A ______ represents an "educated guess" about what must be
done in the long term for survival or the prosperity of the
organization or its principal parts.
A. trend analysis
B. mission
C. strategy
D. forecast
E. contingency plan
C. strategy
1
0
0
.
A single-product strategy can be described as focused but
vulnerable
TRUE
1
0
1
.
A situational analysis is also known as
A. strategic control.
B. SWOT
analysis.
B. SWOT analysis.
C. trend analysis.
D. contingency planning.
E. forecasting.
1
0
2
.
The skills and capabilities that give the organization advantages in
executing strategies in pursuit of its mission are known as
A. organizational strengths.
B. organizational opportunities.
C. organizational threats.
D. organizational weaknesses.
E. competitive strategies.
A.
organizational
strengths.
1
0
3
.
A small firm is likely to benefit significantly from strategic planning
A. regardless of the nature of its industry or market.
B. when it is in a very competitive industry.
C. when it is in a very new industry.
D. when it is in a very stable industry.
B. when it is in
a very
competitive
industry.
E. when it has a very small market.
1
0
4
.
A small florist most likely follows a diversification strategy FALSE
1
0
5
.
The starting point in establishing a grand strategy is usually an
analysis of Porter's competitive forces
FALSE
1
0
6
.
Strategic conservation attempts to achieve sustainable competitive
advantage by preserving what is distinctive about a company
FALSE
1
0
7
.
Strategic management is the process of involving nonmanagerial
employees in the formulation and implementation of strategies and
strategic goals
FALSE
1
0
8
.
The strategic-management process has five steps and a feedback loop TRUE
1
0
9
.
Strategic planning is appropriate for large companies, but does not help the
performance of small companies
FALSE
1
1
0
.
Strategic positioning can be achieved by performing similar activities to
rivals, but in different ways
TRUE
1
1
1
.
A strategic position may be based on serving the few needs of a few
customers
FALSE
1
1
2
.
Strategy actualization is the term for putting strategic plans into effect FALSE
1
1
3
.
Strategy formulation is the process of choosing among different strategies
and altering them to best fit the organization's needs
TRUE
1
1
4
.
A strategy is a large-scale action plan that sets direction for an organization TRUE
1
1
5
A sustainable competitive advantage is the ability of an organization to
produce goods or services more effectively than its competitors and
TRUE
.outperform them
1
1
6
.
SWOT analysis helps management to develop a realistic understanding of
the organization in relation to internal and external environments
TRUE
1
1
7
.
Synergy is one of the benefits of a single-product strategy FALSE
1
1
8
.
A time-series forecast, which is used to predict long-term trends, cyclic
patterns, and seasonal variations, is one type of
A. organizational strength.
B. contingency planning.
C. trend analysis.
D. balanced scorecard.
E. strategy formulation.
C.
trend
analysi
s.
1
1
9
.
Time Warner runs different divisions specializing in television, music, and
publishing. Time Warner is using a(n) ______ strategy.
A. stability
B. defensive
C. diversification
D. differentiation
E. infiltration
C.
diversif
ication
1
2
0
.
Timex Group USA
makes
inexpensive but
reliable watches
sold throughout
the United States
and is an example
of an organization
pursuing a
_________
strategy.
A. cost-leadership
B. differentiation
C. cost-focus
D. focused-
differentiation
E. retrenchment
A. cost-leadership
1
2
1
.
Too little or
unreliable
historical data
may result in
erroneous trend
analyses
TRUE
1
2
2
.
Two types of
forecasting are
trend analysis and
competitive
intelligence
FALSE
1
2
3
.
The use of
hedging to
manage the cost
FALSE
of aviation fuel is
an example of
trend analysis
1
2
4
.
A vision or
projection of the
future is called
a(n)
A. trend.
B. forecast.
C. contingency.
D. strategy.
E. opportunity.
B. forecast.
1
2
5
.
A vision will be
demoralizing to
employees if it
describes a future
state that appears
beyond the reach
of the organization
FALSE
1
2
6
.
What are the
fundamental
differences in
examining internal
and external
environments
when conducting
a situation
analysis?
SWOT analysis, also called a situation analysis, looks at internal
strengths and weaknesses and external opportunities and threats.
The internal environment looks at organizational strengths—the
skills and capabilities that give the organization special
competencies and competitive advantages in executing strategies in
pursuit of its mission, and organizational weaknesses—the
drawbacks that hinder an organization in executing strategies in
pursuit of its mission—are also part of the internal environment.
The external environment includes organizational opportunities—
environmental factors that the organization may exploit for
competitive advantage. It also includes organizational threats—
environmental factors that hinder an organization's achieving a
competitive advantage.
1
2
7
.
When analyzing the "O" in SWOT analysis, a manager
might take note of
A. favorable government regulations.
B. absenteeism among employees.
C. good morale among workers.
D. high service levels.
E. good financial position.
A. favorable government
regulations.
1
2
8
.
When analyzing the "S" in a SWOT analysis, a
manager might take note of
A. a decrease in the size of the market.
B. competitors' new products.
C. high turnover of employees.
D. strong financial resources of the firm.
E. lifting of governmental regulations.
D. strong financial resources
of the firm.
1
2
9
.
When analyzing the "T" in SWOT analysis, a manager
might take note of
B. a competitor's new
product.
A. the firm's cash flow problems.
B. a competitor's new product.
C. employee absenteeism.
D. strong corporate culture.
E. high service levels.
1
3
0
.
When analyzing the "W" in SWOT analysis, a manager
might take note of
A. a decrease in consumer demand.
B. a competitor's bankruptcy.
C. high turnover of employees.
D. good financial resources of the firm.
E. institution of a tariff on foreign competitors.
C. high turnover of
employees.
1
3
1
.
Which of the following best represents a currently
popular strategy among big companies like Apple,
Google, and Amazon?
A. Become involved in the community.
B. Seek niches where there is less competition.
C. Get consumers tightly
connected to the company's
ecosystem.
C. Get consumers tightly connected to the company's
ecosystem.
D. Offer personal or emotional connections to
customers.
E. Discourage price comparisons.
1
3
2
.
Which of the following carmakers pursues a focused-
differentiation strategy?
A. Ferrari
B. Ford
C. Volkswagen
D. Honda
E. Kia
A. Ferrari
1
3
3
.
Which of the following is a question that should be
answered by a company's mission statement?
A. Will it inspire enthusiasm and encourage
commitment?
B. Does it set standards of excellence?
C. Is it appropriate for the organization?
E. Who is our customer?
D. Is it well articulated?
E. Who is our customer?
1
3
4
.
Which of the following is most likely to use a
diversification strategy?
A. A tax preparation business
B. A flower shop
C. A lawn service
D. A grocery store
E. A shoe store
D. A grocery store
1
3
5
.
Which of the following is not a behavior of a leader who
executes?
A. Reward the doers.
B. Insist on realism.
C. Follow through.
D. Know yourself.
E. Respect others'
limitations.
E. Respect others' limitations.
1
3
6
.
Which of the following is not a likely source of information for
competitive intelligence?
A. Competitors' press releases
B. Industry gossip
C. Competitors' annual reports
D. Competitor's customer records
E. Sales visits to customers
D. Competitor's
customer records
1
3
7
.
Which of the following is not an area in which a company
needs to get and stay ahead in order to sustain a competitive
advantage?
A. Talented employees
B. Quality
C. Effectiveness
D. Being responsive to customers
E. Innovating
A. Talented
employees
1
3
8
.
Which of the following is not a question that Bossidy and
Charan believe a strong strategic plan must address?
A. How will deviations from the plan be handled?
A. How will
deviations from the
plan be handled?
B. What is the assessment of the external environment?
C. What are the critical issues facing the business?
D. Can the business execute the strategy?
E. Are the short term and long term balanced?
1
3
9
.
Which of the following is not a stage in the strategic-management
process?
A. Conduct a trend analysis.
B. Maintain strategic control.
C. Establish the grand strategy.
D. Establish the mission and vision.
E. Carry out the strategic plans.
A. Conduct a
trend analysis.
1
4
0
.
Which of the following is not a typical cause of bad planning?
A. Information overload.
B. Inadequate planning budgets.
C. Ineffective group dynamics.
B. Inadequate
planning
budgets.
D. Poor assessment of an organization's capabilities.
E. Faulty assumptions about the future.
1
4
1
.
Which of the following is not one of Bryan Barry's
recommendations to keep a strategic plan on track?
A. Keep moving.
B. Engage people.
C. Keep it simple.
D. Avoid compromise.
E. Stay focused.
D. Avoid
compromise.
1
4
2
.
Which of the following is not one of the forces that affects
industry competition, according to Porter's model for industry
analysis?
A. Threats of new entrants.
B. Threats of substitute products and services.
C. Bargaining power of buyers.
D. Threats of government interference.
E. Bargaining power of suppliers.
D. Threats of
government
interference.
1
4
Which of the following should be included in a D. Firm's standards of excellence
3
.
good vision statement?
A. Firm's attitude toward its employees.
B. Geographical areas in which the firm will
compete.
C. Firm's basic technology.
D. Firm's standards of excellence and high ideals.
E. Firm's major products or services.
and high ideals.
1
4
4
.
Which of the following statements about strategic
planning and strategic management is true?
A. Strategic planning is rarely used in the current
environment of fast change because it does not
allow for flexibility.
B. Strategic management is a process completed
by top managers.
C. Both should be implemented because they can
provide direction and momentum.
D. Middle managers need not understand
strategies; they simply follow them.
E. Strategic planning is used to accomplish
C. Both should be implemented
because they can provide direction
and momentum.
tactical goals.
1
4
5
.
Which of the following statements about strategy
and strategic positioning is false?
A. Many customers with broad needs can be a
source of strategic position.
B. A company has to choose not only what
strategy to follow but what strategy not to follow.
C. Few customers with broad needs can be a
source of strategic position.
D. Strategy involves creating a "fit" among
activities.
E. Few customers with narrow needs can be a
source of strategic position.
E. Few customers with narrow
needs can be a source of strategic
position.
1
4
6
.
Which of the following steps of the strategic-management process
is the source of its feedback loop?
A. Carry out the strategic plan.
B. Maintain strategic control.
C. Establish the grand strategy.
D. Establish the mission and vision.
B. Maintain
strategic
control.
E. Formulate the strategic plans.
1
4
7
.
Which of the following strategy tools suggests that an organization
will do better in fast-growing markets in which it has a high market
share rather than in slow-growing markets in which it has a low
market share?
A. SWOT analysis
B. Porter's model for industry analysis
C. Porter's competitive strategies
D. The BCG matrix
E. Trend analysis
D. The BCG
matrix
1
4
8
.
Which of the following would be considered a reason for adopting
strategic management and strategic planning?
A. To enhance employee loyalty.
B. To keep corporate taxes at a minimum.
C. To develop independent work from the staff.
D. To provide develop a sustainable competitive advantage.
E. To increase market dominance with repeat purchase.
D. To provide
develop a
sustainable
competitive
advantage.
1
.
According to Bossidy and Charan, effective ______ requires managers to
build a foundation for it within three core process: people, strategy, and
operations.
D.
executio
n
A. tactical planning
B. strategy
C. follow-through
D. execution
E. controlling
2
.
According to Bossidy and Charan, which business process is most
important for effective execution?
A. Strategy
B. People
C. Alignment
D. Operations
E. Research
B.
People
3
.
According to Burt Nanus, good vision statements are useful because they
help people to consider all interesting elements in their environments
FALSE
4
.
Actively selling strategic plans to middle and supervisory managers, rather
than just announcing them, is helpful for
A. situation analysis.
C.
strategy
impleme
ntation.
B. strategy formulation.
C. strategy implementation.
D. contingency planning.
E. strategic control.
5
.
After film manufacturer Kodak failed to reinvent itself and declared
bankruptcy in 2012, it decided to focus on its business of making inkjet
printers as part of a ______ strategy.
A. growth
B. stability
C. defensive
D. reorganization
E. reactor
C.
defensiv
e
6
.
After the assessment of current organizational performance, the
subsequent explanation of how its mission is to be accomplished is called
a comprehensive strategy
FALSE
7
.
Alaska Airline was profitable in 2011, prompting is to decide to
remain a "smallish, specialized, regional airline in a world of
global giants," which is an example of a stability strategy
TRUE
8
.
Alexis has prepared a report that details how prices for several
raw materials her firm uses in production have risen by up to 30%
in the last year. Her report would be an input into the __________
part of a SWOT analysis.
D. threats
A. strengths
B. weaknesses
C. opportunities
D. threats
E. structure
9
.
Amanda has just determined that her employees will require
extensive training if they are to acquire the necessary
technological expertise to produce a new product line. She has
discovered one of her firm's
A. strengths.
B. weaknesses.
C. opportunities.
D. threats.
E. market challenges.
B. weaknesses.
1
0
.
Analysis of changing demographics of the U.S. population would
be part of the assessment of a company's
A. strengths.
B. weaknesses.
E. opportunities or
threats depending
on the outcome of
the analysis.
C. opportunities.
D. threats.
E. opportunities or threats depending on the outcome of the
analysis.
1
1
.
Anne runs a small bakery on the main street of a resort
town. Though hers was the only bakery around, the
business had been suffering during the economic
slowdown, and she was contemplating whether she should
attempt strategic planning. Anne should be aware of what
research finding regarding strategic planning?
A. Only large firms show performance gains from strategic
planning.
B. Only small firms show performance gains from strategic
planning.
C. Performance gains from strategic planning are equal
among small and large firms.
D. Both small and large firms benefit from strategic
planning, but small firms get a larger boost in performance.
E. Both small and large firms benefit from strategic
planning, but the small improvement in performance may
not be worth the effort for small firms.
E. Both small and large
firms benefit from
strategic planning, but
the small improvement in
performance may not be
worth the effort for small
firms.
1
2
.
Apple's iPad has a very high percentage of the market for
tablet computers, and this is also a quickly growing market.
Thus, using the BCG matrix, the iPad would be classified
A. star.
as a
A. star.
B. cloud.
C. question mark.
D. cash cow.
E. dog.
1
3
.
Bad planning is usually a result of top managers' inability
to gather enough information
FALSE
1
4
.
The BCG matrix is a means of evaluating strategic
business units on the basis of both their business growth
rates and their profitability
FALSE
1
5
.
The benefit of the single-product strategy for a company is
A. synergy.
B. focus.
C. isolated systems.
D. differentiation.
E. lower costs.
B. focus.
1
6
.
Bossidy and Charan believe that to excel at execution, a leader
should
D. probe for
weaknesses in the
substance and
A. be hands-off once the strategy is set.
B. micromanage the tactics.
C. empower employees to take over the execution.
D. probe for weaknesses in the substance and details.
E. let the plan run its course before attempting to revise it.
details.
1
7
.
Burberry makes outerwear, accessories like umbrellas, and
children's clothing, which is called a related diversification
strategy.
TRUE
1
8
.
A business plan is a document with the purpose of outlining a
proposed firm's profit and loss statements for its first operating
cycle
FALSE
1
9
.
Careful monitoring of an organization's internal and external
environment to detect early signs of opportunities and threats
that may influence the firm's plans is called
A. competitive intelligence.
B. forecasting.
C. contingency planning.
D. trend analysis.
E. environmental scanning.
E. environmental
scanning.
2
0
.
Cash cows in the BCG matrix have slow growth but high market
share
TRUE
2
1
.
A common challenge to strategy implementation is resistance by
people within the organization
TRUE
2
2
.
The common grand strategies are
A. star, question mark, cash cow, and dog.
B. cost-leadership, differentiation, cost focus, and focused
differentiation.
C. growth, stability, and defensive.
D. strengths, weaknesses, opportunities, and threats.
E. defender, prospector, analyzer, and reactor.
C. growth,
stability, and
defensive.
2
3
.
A company must be able to execute three core processes of
business including people, products, and administration
FALSE
2
4
.
Computer technology corporation Dell recently acquired Quest software, an IT
management software provider, in order to expand upon its software
expertise and offerings. Dell is pursuing a(n) ______ strategy.
A. escalation
B. growth
C. stability
D. merger
B.
growt
h
E. defensive
2
5
.
______ consists of monitoring the execution of strategy and making
adjustments, if necessary.
A. Mission translation
B. Strategic control
C. Strategy implementation
D. Contingency planning
E. SWOT analysis
B.
Strat
egic
contr
ol
2
6
.
Consumers can use a national company called Service Magic to receive bids
from quality providers of a variety of services, including home remodel,
landscaping, plumbing, and housecleaning. Service Magic charges service
providers for the leads it provides to them monthly. Which of the following is
the source of Service Magic's strategic position?
A. Low-profit margin and many customers.
B. Broad needs and few customers.
C. Broad needs and many customers.
D. High-profit margin and many customers.
E. High-profit margin and few customers.
C.
Broa
d
need
s and
many
custo
mers.
2
7
.
Contingency planning can also be called scenario analysis TRU
E
2
8
.
Contingency planning is a hypothetical extension of a past series of events
into the future
FALS
E
2
9
.
A continuity strategy is the common grand strategy that involves little or no
significant change
FALS
E
3
0
.
Creation of alternative hypothetical but equally likely future conditions is
called
A. contingency planning.
B. trend analysis.
C. balancing the scorecard.
D. strategy formulation.
E. forecasting.
A.
conti
ngen
cy
plann
ing.
3
1
.
Daniel is assessing his
company's portfolio of
products. One of them is
the best-selling brand of
mayonnaise, although this
is now a slow-growing
market. If Daniel uses the
BCG matrix, he would
classify this product as a
star.
B. cloud.
C. question mark.
D. cash cow.
D. cash cow.
E. dog.
3
2
.
A defensive strategy is
sometimes called a
retrenchment strategy
TRUE
3
3
.
Define competitive
intelligence and explain
how you might go about
obtaining it legally
Competitive intelligence means gaining information about
one's competitors' activities so that one can anticipate their
moves and react appropriately. Gaining competitive
intelligence isn't always easy, but there are several avenues
and most of them are public sources including (1) the public
prints and advertising, (2) investor information like corporate
annual reports, and (3) informal sources such as trade show
gossip and information from company salespeople.
3
4
.
Define forecasting and
discuss its importance.
Describe the two types of
forecasting described in
the text.
Forecasting is developing a vision or projection of the future,
which is a necessary component of strategic planning. The
two types are trend analysis and contingency planning.
Trend analysis is a hypothetical extension of a past series of
events into the future. Contingency planning is the creation
of alternative hypothetical but equally likely future conditions.
3
5
.
Define strategic
positioning. Explain the
three principles that
underlie strategic
positioning
Strategic positioning attempts to achieve sustainable
competitive advantage by preserving what is distinctive
about a company. It means, according to Porter, "performing
different activities from rivals, or performing similar activities
in different ways."
Three key principles underlie strategic positioning:
Strategy is the creation of a unique and valuable position,
which emerges from three sources: few needs, many
customers; broad needs, few customers; or broad needs,
many customers.
Strategy requires trade-offs in competing. A company has to
choose not only what strategy to follow but what strategy not
to follow.
Strategy involves creating a "fit" among activities. "Fit" has to
do with the ways a company's activities interact and reinforce
one another.
3
6
.
Describe Porter's four competitive
strategies and explain how they differ
from each other. Provide an example of
a firm that might use each
Porter identified two "wide" strategies (cost-
leadership and differentiation) that deal with
broad markets, and two "narrow" strategies
(cost-focus and focused-differentiation) that
target specific markets.
1. Cost-leadership focuses on keeping costs
and prices low for a wide market, and
examples are Dell, Timex, Home Depot, and
Bic.
2. Differentiation stresses offering unique and
superior products and services to a wide
market and examples include Ritz-Carlton,
Lexus, and PepsiCo.
3. Cost-focus emphasizes keeping low costs
and prices, but to a narrow market and
examples include low-cost products sold at
discount store and discount regional gas
station chains.
4. Focused-differentiation stresses unique and
superior products to a narrow market and
examples include Rolls Royce, Cartier,
Turnbull & Asser, and niche books.
3
7
.
Describe the strategic management
process. Explain what the "feedback
loop" is and why it is important. The
strategic management process involves
five steps:
1. Establish the mission and vision.
2. Establish the grand strategy.
3. Formulate the strategic plans.
The strategic management process involves
five steps:
1. Establish the mission and vision.
2. Establish the grand strategy.
3. Formulate the strategic plans.
4. Carry out the strategic plans.
5. Maintain strategic control.
4. Carry out the strategic plans.
5. Maintain strategic control. The feedback loop comes out of strategic
control. Through control, managers monitor
progress and take corrective action early and
rapidly when things go awry, returning to
earlier steps to fix problems.
3
8
.
Describe what determines
competitiveness within a particular
industry using Porter's model for
industry analysis. Provide an example
for at least three of the five forces in the
model
Competitiveness within a particular industry
originates in the five primary competitive
forces in the firm's environment:
1. Threats of new entrants: for Kraft, new
entrants might be store brands or Annie's.
2. Bargaining power of suppliers: companies
without multiple suppliers are at the mercy of
the one.
3. Bargaining power of buyers: customers who
use the Internet to shop around are more able
to negotiate a better price.
4. Threats of substitute products or services:
for big oil companies, firms making ethanol
provide a substitute product.
5. Rivalry among competitors: for Coca-Cola,
Pepsi is an established rival.
3
9
.
A development strategy is the common
grand strategy that involves expansion
FALSE
4
0
.
Effective strategic management involves
A. only top management.
B. only top and middle management.
C. only middle and lower management levels.
E. managers from all parts
of the organization.
D. only lower management level.
E. managers from all parts of the organization.
4
1
.
Environmental factors that the organization may exploit
for a competitive advantage are known as
A. organizational strengths.
B. organizational opportunities.
C. organizational threats.
D. organizational weaknesses.
E. competitive strategies.
B. organizational
opportunities.
4
2
.
An example of a firm that pursues a differentiation
strategy is
A. Cartier.
B. Lexus.
C. Bic.
D. A regional discount gas station chain.
E. Home Depot.
C. Bic.
4
3
.
Execution is tactical in nature, rather than part of a
company's strategy
FALSE
4
4
.
Explain
strategy
implementati
on,
including
the role of
resistance
Putting strategic plans into effect is strategy implementation. Strategy
implementation is the stage of the strategic management process where
managers determine possible roadblocks within the organization and see if
the right people and control systems are available to execute the plans.
Resistance may be encountered when people feel the plans threaten their
livelihoods or their influence. This is especially true when plans are being
implemented quickly, as delays (a form of resistance) can easily be
constructed and these delays may heavily damage a plan. Thus, top
managers can't just announce the plans; they have to actively sell them to
middle and supervisory managers
4
5
.
Explain the
positive and
negative
aspects of
pursuing a
single-
product
strategy
versus a
diversificatio
n one.
Provide an
example of a
company
that uses
each type of
strategy
In a single-product strategy, a company makes and sells only one product
within its market. Making just one product allows you to focus your
manufacturing and marketing efforts just on that product. This means that
your company can become savvy about repairing defects, upgrading
production lines, scouting the competition, and doing highly focused
advertising and sales. The risk, of course, is that if you do not focus on all
aspects of the business, if a rival gets the jump on you, or if an act of God
intervenes (for a florist, roses suffer a blight right before Mother's Day), your
entire business may go under. The single-product strategy is seen all the
time as you drive past the small retail businesses in a small town: There
may be one shop that sells only flowers, one that sells only security
systems, and so on.
Diversification is operating several businesses in order to spread the risk.
Diversification may be related or unrelated. Related diversification has three
advantages: reduced risk—because if one product is weak, others may take
up the slack, management efficiencies—because administration is spread
over several businesses, and synergy, that the sum is greater than the
parts. You see the diversification strategy at the small retailer level when
you drive past a store that sells gas and food and souvenirs and rents DVD
movies
4
6
.
Explain the
three core
processes of
business
and how
they relate
to execution
A company's overall ability to execute is a function of effectively executing in
terms of its people processes, strategic processes, and operational
processes.
People process: An effective leader tries to evaluate talent by linking people
to particular strategic milestones, developing future leaders, dealing with
nonperformers, and transforming the mission and operations of the human
resource department.
Strategic processes: A good strategic plan addresses nine questions. In
considering whether the organization can execute the strategy, a leader
must take a realistic and critical view of its capabilities and competencies.
Operations processes: The strategy process defines where an organization
wants to go, and the people process defines who's going to get it done.
Operations or the operating plan provides the path for people to follow. The
operating plan should address all the major activities in which the company
will engage and then define short-term objectives for these activities, to
provide targets for people at which to aim.
4
7
.
Faisal has been running a commercial real estate business for nearly 30 years.
As he approaches retirement, he is content to simply lease the commercial
space he currently has, rather than make new deals to develop additional
properties. Faisal is using which grand strategy?
A. Stability
B. Retrenchment
C. Inducement
D. Defensive
E. Growth
A.
Sta
bilit
y
4
8
.
"Find out what customers want, then provide it to them as cheaply and quickly
as possible" is Walmart's
A. growth plan.
B. technical plan.
D.
stra
teg
y.
C. synergy.
D. strategy.
E. forecast.
4
9
.
A fine luggage maker was struggling with heavy debt and a sharp decline in
customers, and it eventually declared bankruptcy. The company followed which
grand strategy?
A. Growth
B. Stability
C. Defensive
D. Reduction
E. Reactive
C.
Def
ens
ive
5
0
.
The first step of the strategic-management process is to establish the grand
strategy
FAL
SE
5
1
.
Ford's Sync in-dash communications platform, despite its high level of
technology, has been unable to provide the company with a distinct competitive
advantage
FAL
SE
5
2
.
Forecasting is a strategic-planning tool used to make long-term strategy TR
UE
5
3
.
Formal business plans can be dangerous to the survival of new businesses;
many who try them fail because of the resources required to write and agree
upon the plan.
FAL
SE
5
4
.
Gaining information about one's
competitors' activities so that you can
anticipate their moves and react
E. competitive intelligence.
appropriately is called
A. strategic forecasting.
B. corporate espionage.
C. contingency planning.
D. trend analysis.
E. competitive intelligence.
5
5
.
General Electric sells lighting products and
is also involved in plastics, broadcasting,
and financial services. GE uses a related
diversification strategy
FALSE
5
6
.
Give examples of what managers might look
at in performing each element of a SWOT
analysis. SWOT analysis—also known as a
situational analysis—is a search for the
strengths, weaknesses, opportunities, and
threats affecting the organization.
Examples of a firm's strengths and
weaknesses: work processes, organization,
culture, staff, product quality, production
capacity, image, financial resources and
requirements, service levels, other internal
matters.
SWOT analysis—also known as a
situational analysis—is a search for the
strengths, weaknesses, opportunities,
and threats affecting the organization.
Examples of a firm's strengths and
weaknesses: work processes,
organization, culture, staff, product
quality, production capacity, image,
financial resources and requirements,
service levels, other internal matters.
Examples of a firm's opportunities and
threats: market segment analysis,
industry and competition analysis, impact
of technology on organization, product
analysis, governmental impacts, other
external matters (see Figure 6.2).
5
7
.
Good strategy allows a company to be
everything to everyone
FALSE
5
8
.
A good vision statement should describe a
company's major strengths and competitive
advantage in its industry
FALSE
5
9
.
A grand strategy can be established using
tools like SWOT analysis and forecasting
TRUE
6
0
.
A grand strategy that involves reduction in
the organization's efforts is the ______
strategy.
A. retrenchment
B. reorganization
C. downsizing
D. growth
E. stability
A. retrenchment
6
1
.
Guthrie Community College has done a
SWOT analysis and discovered that the
number of college-bound high-school
juniors in its state has grown by nearly 20%
in the past few years. This is a strength for
Guthrie
FALSE
6
2
.
Harvard Business School professor Michael Porter is a leading authority on
competitive strategy
TR
UE
6
3
.
High Peaks Skate and Snowboard is a small shop that provides equipment for
Utah snowboarders in winter months. It has decided to increase advertising
during this period in the Salt Lake Tribune and the Park Record in Park City, as
well as to sponsor a new on-mountain competition. It is following which
strategy?
C.
Gro
wth
A. Inducement
B. Defensive
C. Growth
D. Stability
E. Enhancement
6
4
.
In a cost-leadership strategy, an organization targets a wide market and offers
products or services of unique and superior value compared to competitors
FAL
SE
6
5
.
In a world of rapid and discontinuous change, the ability to please
nonmanagerial employees has been called the golden trait among managers
FAL
SE
6
6
.
In Porter's model for industry analysis, there are three primary competitive
forces in a firm's environment
FAL
SE
6
7
.
Insisting on realism is among the leader behaviors that help a manager
successfully execute a strategy
TR
UE
6
8
.
An Iowa ethanol production company has been suffering from a combination of
lower demand for gasoline (into which its product is mixed) and higher corn
prices (which is the largest input cost). It has responded by selling off land,
buildings, and some of its reserve product inventory. This is a variation of
which of these grand strategies?
A. Right-size
B. Growth
C. Stability
D. Defensive
D.
Def
ens
ive
E. Reorganization
6
9
.
Kraft Macaroni & Cheese is now challenged by new competitors such as
Annie's and other store brands, which Porter's model for industry analysis calls
the threat of new entrants
TR
UE
7
0
.
List at least five of the seven essential types of leader
behaviors that are needed to fuel the engine of execution
The seven essential
types of leader
behaviors are:
1. Know your people
and your business:
engage intensely with
your employees.
2. Insist on realism:
don't let others avoid
reality.
3. Set clear goals and
priorities: focus on a few
rather than many goals.
4. Follow through:
establish accountability
and check on results.
5. Reward the doers:
show top performers
that they matter.
6. Expand people's
capabilities: develop the
talent.
7. Know yourself: do the
hard work of
understanding who you
are.
7
1
.
Luxury carmaker Rolls-Royce has a focused-differentiation
strategy
TRUE
7
2
.
Management of a small company in an industry that is not
very competitive should not engage in strategic planning
TRUE
because the small gains in performance may not be worth
the effort
7
3
.
A manager assessing the organization's access to capital is
involved in analysis of
A. strengths.
B. weaknesses.
C. opportunities.
D. threats.
E. strengths or weaknesses depending on the outcome of
the assessment.
E. strengths or
weaknesses depending
on the outcome of the
assessment.
7
4
.
Managers must be willing to make large, painful decisions to
suddenly alter strategy
TRUE
7
5
.
Managers who execute well insist on constant optimism FALSE
7
6
.
Many good mission statements include descriptions of an
organization's customers, as well as its major products or
services
TRUE
7
7
.
__________ means performing different activities from rivals
or performing similar ones in different ways.
A. Competitive planning
B. Distinctive positioning
C. Collaborative planning
E. Strategic positioning
D. Strategic segmentation
E. Strategic positioning
7
8
.
Milo owns and
manages a small
bike repair store. In
order to determine if
strategic planning
will be likely to help
his business, Milo
should primarily
assess
A. how many
competitors he has.
B. foot traffic by his
location.
C. his profitability in
the prior six months.
D. industry trends.
E. how much he
intends to grow in
the next five years.
A. how many competitors he has.
7
9
.
A mission statement
should be ambitious
FALSE
8
0
.
Name the three
common grand
strategies and
provide an example
of how a company
might use each.
There are the three common grand strategies:
1. A growth strategy is a grand strategy that involves expansion—
as in sales revenues, market share, number of employees, or
number of customers or (for nonprofits) clients served. Examples: It
can improve an existing product or service to attract more buyers. It
can increase its promotion and marketing efforts to try to expand its
market share. It can expand into new products or services. It can
acquire similar or complementary businesses.
2. A stability strategy is a grand strategy that involves little or no
significant change. Examples: It can go for a no-change strategy (if,
for example, it has found that too-fast growth leads to foul-ups with
orders and customer complaints). It can go for a little-change
strategy (if, for example, the company has been growing at
breakneck speed and feels it needs a period of consolidation).
3. A defensive strategy, or a retrenchment strategy, is a grand
strategy that involves reduction in the organization's efforts.
Examples: It can reduce costs, as by freezing hiring or tightening
expenses. It can sell off (liquidate) assets—land, buildings,
inventories, and the like. It can gradually phase out product lines or
services. It can declare bankruptcy.
8
1
.
Obsolete technology
and outdated
facilities are
examples of
organizational
threats
FALSE
8
2
.
Oil companies must be aware of other firms' development of ethanol
products since this is an example of which one force in Porter's model
for industry analysis?
A. Bargaining power of buyers.
B. Rivalry among competitors.
C. Bargaining power of suppliers.
D. Threats of new entrants.
E. Threats of substitute products and services.
E. Threats of
substitute
products and
services.
8
3
.
One of the ways to keep a strategic plan on track is to make it very
comprehensive, covering as many scenarios for the future as you can
FALSE
8
4
.
Organizational threats are the environmental factors that hinder an
organization's ability to achieve a competitive advantage
TRUE
8
5
.
An organization is developing a low-cost line of environmentally
friendly cleaning products that it intends to distribute internationally.
Here, the organization is following a ______ strategy.
A. cost leadership
B. differentiation
C. cost focus
D. retrenchment
E. focused-differentiation
A. cost
leadership
8
6
.
An organization should adopt strategic management and strategic
planning to encourage new ideas
TRUE
8
7
.
Organizations may turn to the strategic-management process after a
crisis
TRUE
8
8
.
An organization that is offering unique, superior products or services
to a wide market is pursuing a strategy of
A. cost leadership.
B. differentiation.
C. cost focus.
B.
differentiation.
D. diversification.
E. focused differentiation.
8
9
.
An organization that keeps costs and prices low in
targeting a narrow market is pursuing a strategy of
A. cost leadership.
B. differentiation.
C. cost focus.
D. stability.
E. focused differentiation.
C. cost focus.
9
0
.
An organization that offers unique, superior products or
services to a narrow market is pursuing a strategy of
A. cost leadership.
B. differentiation.
C. cost focus.
D. diversification.
E. focused differentiation.
E. focused differentiation.
9
1
.
Planning is usually a straightjacket for new ideas, since it
effectively blocks peripheral vision in favor of a
FALSE
predetermined course
9
2
.
Porter's competitive strategies include
A. prospector, defender, analyzer, and reactor.
B. growth, stability, and retrenchment.
C. cost leadership, differentiation, cost focus, and focused
differentiation.
D. strengths, weaknesses, opportunities, and threats.
E. stars, questions marks, cash cows, and dogs.
C. cost leadership,
differentiation, cost focus,
and focused
differentiation.
9
3
.
The primary purpose of competitive intelligence is to
challenge the thinking of employees to make them better
equipped to produce novel ideas for business
FALSE
9
4
.
The process of choosing among different strategies and
altering them to best fit the organization is called
A. strategy formulation.
B. contingency planning.
C. strategic control.
D. strategy implementation.
E. trend analysis.
A. strategy formulation.
9
5
.
Rafaela is interested in learning more about what one of her competitors is
doing so that she can anticipate its upcoming moves and react quickly. Which
C.
Use
of the following would you suggest to her for this purpose?
A. Go through the competitor's trash on its property.
B. Pose as an applicant for a job with the competitor.
C. Use investor information.
D. Call the competitor, explain who you are, and ask directly.
E. Pay the competitor's customers for information.
invest
or
infor
matio
n.
9
6
.
Recently ConocoPhillips, America's third-biggest oil company, spun off its
refineries, pipelines, and chemicals division to form a new company called
Phillips 66. Now ConocoPhillips will concentrate on its upstream operations.
This is a variation of which of these grand strategies?
A. Right-size
B. Growth
C. Stability
D. Defensive
E. Reorganization
D.
Defen
sive
9
7
.
A recent survey found that the top concern among CEOs worldwide is
A. profit growth.
C.
excell
ence
in
execu
B. customer loyalty.
C. excellence in execution.
D. stimulating innovation.
E. finding qualified employees.
tion.
9
8
.
__________ refers to the idea that the economic value of separate, related
businesses under one ownership and management is greater together than
the businesses are worth separately.
A. Structural benefit
B. Synergy
C. Selective function
D. Alignment
E. Consolidation
B.
Syner
gy
9
9
.
A ______ represents an "educated guess" about what must be done
in the long term for survival or the prosperity of the organization or
its principal parts.
A. trend analysis
B. mission
C. strategy
C. strategy
D. forecast
E. contingency plan
1
0
0
.
A single-product strategy can be described as focused but
vulnerable
TRUE
1
0
1
.
A situational analysis is also known as
A. strategic control.
B. SWOT analysis.
C. trend analysis.
D. contingency planning.
E. forecasting.
B. SWOT
analysis.
1
0
2
.
The skills and capabilities that give the organization advantages in
executing strategies in pursuit of its mission are known as
A. organizational strengths.
B. organizational opportunities.
C. organizational threats.
D. organizational weaknesses.
A.
organizational
strengths.
E. competitive strategies.
1
0
3
.
A small firm is likely to benefit significantly from strategic planning
A. regardless of the nature of its industry or market.
B. when it is in a very competitive industry.
C. when it is in a very new industry.
D. when it is in a very stable industry.
E. when it has a very small market.
B. when it is in a
very competitive
industry.
1
0
4
.
A small florist most likely follows a diversification strategy FALSE
1
0
5
.
The starting point in establishing a grand strategy is usually an
analysis of Porter's competitive forces
FALSE
1
0
6
.
Strategic conservation attempts to achieve sustainable competitive
advantage by preserving what is distinctive about a company
FALSE
1
0
7
.
Strategic management is the process of involving nonmanagerial
employees in the formulation and implementation of strategies and strategic
goals
FALSE
1
0
8
.
The strategic-management process has five steps and a feedback loop TRUE
1
0
9
.
Strategic planning is appropriate for large companies, but does not help the
performance of small companies
FALSE
1
1
0
.
Strategic positioning can be achieved by performing similar activities to
rivals, but in different ways
TRUE
1
1
1
.
A strategic position may be based on serving the few needs of a few
customers
FALSE
1
1
2
.
Strategy actualization is the term for putting strategic plans into effect FALSE
1
1
3
.
Strategy formulation is the process of choosing among different strategies
and altering them to best fit the organization's needs
TRUE
1
1
4
.
A strategy is a large-scale action plan that sets direction for an organization TRUE
1
1
5
.
A sustainable competitive advantage is the ability of an organization to
produce goods or services more effectively than its competitors and
outperform them
TRUE
1
1
6
.
SWOT analysis helps management to develop a realistic understanding of
the organization in relation to internal and external environments
TRUE
1
1
7
.
Synergy is one of the benefits of a single-product strategy FALSE
1
1
8
.
A time-series forecast, which is used to predict long-term trends, cyclic
patterns, and seasonal variations, is one type of
A. organizational strength.
B. contingency planning.
C. trend analysis.
D. balanced scorecard.
C.
trend
analysi
s.
E. strategy formulation.
1
1
9
.
Time Warner runs different divisions specializing in television, music, and
publishing. Time Warner is using a(n) ______ strategy.
A. stability
B. defensive
C. diversification
D. differentiation
E. infiltration
C.
diversif
ication
1
2
0
.
Timex Group USA
makes
inexpensive but
reliable watches
sold throughout
the United States
and is an example
of an organization
pursuing a
_________
strategy.
A. cost-leadership
B. differentiation
C. cost-focus
D. focused-
A. cost-leadership
differentiation
E. retrenchment
1
2
1
.
Too little or
unreliable
historical data
may result in
erroneous trend
analyses
TRUE
1
2
2
.
Two types of
forecasting are
trend analysis and
competitive
intelligence
FALSE
1
2
3
.
The use of
hedging to
manage the cost
of aviation fuel is
an example of
trend analysis
FALSE
1
2
4
.
A vision or
projection of the
future is called
a(n)
A. trend.
B. forecast.
C. contingency.
D. strategy.
E. opportunity.
B. forecast.
1A vision will be FALSE
2
5
.
demoralizing to
employees if it
describes a future
state that appears
beyond the reach
of the organization
1
2
6
.
What are the
fundamental
differences in
examining internal
and external
environments
when conducting
a situation
analysis?
SWOT analysis, also called a situation analysis, looks at internal
strengths and weaknesses and external opportunities and threats.
The internal environment looks at organizational strengths—the skills
and capabilities that give the organization special competencies and
competitive advantages in executing strategies in pursuit of its
mission, and organizational weaknesses—the drawbacks that hinder
an organization in executing strategies in pursuit of its mission—are
also part of the internal environment.
The external environment includes organizational opportunities—
environmental factors that the organization may exploit for
competitive advantage. It also includes organizational threats—
environmental factors that hinder an organization's achieving a
competitive advantage.
1
2
7
.
When analyzing the "O" in SWOT analysis, a manager
might take note of
A. favorable government regulations.
B. absenteeism among employees.
C. good morale among workers.
D. high service levels.
E. good financial position.
A. favorable government
regulations.
1
2
8
.
When analyzing the "S" in a SWOT analysis, a
manager might take note of
D. strong financial resources
of the firm.
A. a decrease in the size of the market.
B. competitors' new products.
C. high turnover of employees.
D. strong financial resources of the firm.
E. lifting of governmental regulations.
1
2
9
.
When analyzing the "T" in SWOT analysis, a manager
might take note of
A. the firm's cash flow problems.
B. a competitor's new product.
C. employee absenteeism.
D. strong corporate culture.
E. high service levels.
B. a competitor's new
product.
1
3
0
.
When analyzing the "W" in SWOT analysis, a manager
might take note of
A. a decrease in consumer demand.
B. a competitor's bankruptcy.
C. high turnover of
employees.
C. high turnover of employees.
D. good financial resources of the firm.
E. institution of a tariff on foreign competitors.
1
3
1
.
Which of the following best represents a currently
popular strategy among big companies like Apple,
Google, and Amazon?
A. Become involved in the community.
B. Seek niches where there is less competition.
C. Get consumers tightly connected to the company's
ecosystem.
D. Offer personal or emotional connections to
customers.
E. Discourage price comparisons.
C. Get consumers tightly
connected to the company's
ecosystem.
1
3
2
.
Which of the following carmakers pursues a focused-
differentiation strategy?
A. Ferrari
B. Ford
C. Volkswagen
A. Ferrari
D. Honda
E. Kia
1
3
3
.
Which of the following is a question that should be
answered by a company's mission statement?
A. Will it inspire enthusiasm and encourage
commitment?
B. Does it set standards of excellence?
C. Is it appropriate for the organization?
D. Is it well articulated?
E. Who is our customer?
E. Who is our customer?
1
3
4
.
Which of the following is most likely to use a
diversification strategy?
A. A tax preparation business
B. A flower shop
C. A lawn service
D. A grocery store
D. A grocery store
E. A shoe store
1
3
5
.
Which of the following is not a behavior of a leader who
executes?
A. Reward the doers.
B. Insist on realism.
C. Follow through.
D. Know yourself.
E. Respect others' limitations.
E. Respect others'
limitations.
1
3
6
.
Which of the following is not a likely source of information for
competitive intelligence?
A. Competitors' press releases
B. Industry gossip
C. Competitors' annual reports
D. Competitor's customer records
E. Sales visits to customers
D. Competitor's
customer records
1
3
7
.
Which of the following is not an area in which a company
needs to get and stay ahead in order to sustain a competitive
advantage?
A. Talented
employees
A. Talented employees
B. Quality
C. Effectiveness
D. Being responsive to customers
E. Innovating
1
3
8
.
Which of the following is not a question that Bossidy and
Charan believe a strong strategic plan must address?
A. How will deviations from the plan be handled?
B. What is the assessment of the external environment?
C. What are the critical issues facing the business?
D. Can the business execute the strategy?
E. Are the short term and long term balanced?
A. How will
deviations from the
plan be handled?
1
3
9
.
Which of the following is not a stage in the strategic-management
process?
A. Conduct a trend analysis.
B. Maintain strategic control.
A. Conduct a
trend analysis.
C. Establish the grand strategy.
D. Establish the mission and vision.
E. Carry out the strategic plans.
1
4
0
.
Which of the following is not a typical cause of bad planning?
A. Information overload.
B. Inadequate planning budgets.
C. Ineffective group dynamics.
D. Poor assessment of an organization's capabilities.
E. Faulty assumptions about the future.
B. Inadequate
planning budgets.
1
4
1
.
Which of the following is not one of Bryan Barry's
recommendations to keep a strategic plan on track?
A. Keep moving.
B. Engage people.
C. Keep it simple.
D. Avoid compromise.
E. Stay focused.
D. Avoid
compromise.
1
4
2
.
Which of the following is not one of the forces that affects
industry competition, according to Porter's model for industry
analysis?
A. Threats of new entrants.
B. Threats of substitute products and services.
C. Bargaining power of buyers.
D. Threats of government interference.
E. Bargaining power of suppliers.
D. Threats of
government
interference.
1
4
3
.
Which of the following should be included in a
good vision statement?
A. Firm's attitude toward its employees.
B. Geographical areas in which the firm will
compete.
C. Firm's basic technology.
D. Firm's standards of excellence and high ideals.
E. Firm's major products or services.
D. Firm's standards of excellence
and high ideals.
1
4
4
.
Which of the following statements about strategic
planning and strategic management is true?
C. Both should be implemented
because they can provide direction
and momentum.
A. Strategic planning is rarely used in the current
environment of fast change because it does not
allow for flexibility.
B. Strategic management is a process completed
by top managers.
C. Both should be implemented because they can
provide direction and momentum.
D. Middle managers need not understand
strategies; they simply follow them.
E. Strategic planning is used to accomplish
tactical goals.
1
4
5
.
Which of the following statements about strategy
and strategic positioning is false?
A. Many customers with broad needs can be a
source of strategic position.
B. A company has to choose not only what
strategy to follow but what strategy not to follow.
C. Few customers with broad needs can be a
source of strategic position.
D. Strategy involves creating a "fit" among
activities.
E. Few customers with narrow
needs can be a source of strategic
position.
E. Few customers with narrow needs can be a
source of strategic position.
1
4
6
.
Which of the following steps of the strategic-management process
is the source of its feedback loop?
A. Carry out the strategic plan.
B. Maintain strategic control.
C. Establish the grand strategy.
D. Establish the mission and vision.
E. Formulate the strategic plans.
B. Maintain
strategic
control.
1
4
7
.
Which of the following strategy tools suggests that an organization
will do better in fast-growing markets in which it has a high market
share rather than in slow-growing markets in which it has a low
market share?
A. SWOT analysis
B. Porter's model for industry analysis
C. Porter's competitive strategies
D. The BCG matrix
E. Trend analysis
D. The BCG
matrix
1Which of the following would be considered a reason for adopting D. To provide
4
8
.
strategic management and strategic planning?
A. To enhance employee loyalty.
B. To keep corporate taxes at a minimum.
C. To develop independent work from the staff.
D. To provide develop a sustainable competitive advantage.
E. To increase market dominance with repeat purchase.
develop a
sustainable
competitive
advantage.
1
.
According to Jim Collins, researcher of
enduring great companies, hubris and
denial are among the stages of institutional
decline.
True
2
.
According to Jim Collins, undisciplined
pursuit of more and grasping for salvation
are stages of organizational
decline.
3
.
According to Lewin, for unfreezing to take
place, people need to become dissatisfied
with the old way of doing things.
True
4
.
According to Scott Berkun, the search for
wealth is one of six seeds of innovation.
True
5
.
Adaptive change involves introducing a
practice that is new to an industry.
False
6
.
A(n) ______ innovation is a change in the
way a product or service is conceived,
manufactured, or disseminated.
process
7
.
Arizona Pottery is having a difficult time
finding inexpensive labor, which it
attributes to an unfriendly climate toward
Hispanics since passage of tough illegal
immigration legislation in that state. This is
social
or
political
an example of a(n) ______ force for change.
8
.
At Hartford Toy Depot, employees know that
during the month of December they are
generally required to work different
schedules, often with some overtime, to
support the holiday shopping season. This
is an example of a(n) ______ change.
adaptiv
e
9
.
Benchmarking is a technique that can be
used in the refreezing stage of Lewin's
change model.
False
1
0
.
BP handled the 2010 oil spill crisis in the
Gulf of Mexico in a proactive manner.
False
1
1
.
Caleb, an OD consultant, is designing a
survey of employee attitudes to be given to
workers at Tandem Investments. Caleb is
conducting the ______ stage of OD.
diagnos
is
1
2
.
A change agent is a behavioral sciences
consultant who helps organizations deal
with old problems in new ways.
True
1
3
.
Changes in power structures that occur
with administrative and technological
changes are generally embraced by
employees because of the new
opportunities they present.
False
1
4
.
A change that is made in response to
arising problems or opportunities is called
reactive
change.
1
5
.
A change that represents the introduction of
a new practice to an organization but that is
not new to the industry is called a(n)
innovati
ve
change.
16. Chicago Cutlery reinstituted a sales contest
with the same rules as the one that it used
five years ago. This is an example of a
process innovation.
False
17. China and India are changing the way
American companies work, in part, through
substantial labor savings
True
18. Coleman Natural Foods began selling natural
beef back when most shoppers were
unaware of the term. This is an example of
proactive change.
True
19. Conventional electric vehicle batteries use a
liquid electrolyte but an Orlando start-up is
developing a solid-state lithium-ion battery
with improved stability and lifetime. This is
an example of incremental innovation.
True
20. The creation of products, services, or
technologies that modify those that already
exist is called ______ innovation.
incremental
21. Creighton Bicycles and Repair conducted a
survey and discovered that among
customers who had tried both bike shops, its
successful cross-town competition was
preferred about 80% of the time. The most
frequently cited reason was customer
service. This information would be most
helpful to introduce to employees during
which stage of Lewin's change model?
Unfreezing
22. Demassification refers to a trend of customer
groups being segmented into smaller,
specialized groups responding to narrowly
targeted messages.
True
23. During Lewin's changing stage, managers
should
give
employees
new models
for behavior.
24. During Lewin's refreezing stage, managers
should
reinforce the
desired
change in
the
employees.
25. During the recession and its accompanying
high levels of unemployment, Giordano
Construction has had its choice of
employees to support its growth. This is an
example of a(n) ______ force for change.
market
2
6
.
During the refreezing stage of Lewin's
change model, managers should model
the change themselves, as well as coach
employees and reinforce the desired
behaviors.
True
2
7
.
Employee problems are one type of
outside force for change in the
organization.
False
2
8
.
Employees are likely to see an adaptive
change as
least
threatenin
g.
2
9
.
Employees might feel they are being
underpaid for what they do, even if pay
and benefits are superior to the
competition. Here, managers must
change
perceptio
ns.
3
0
.
Entrepreneurs tend to be tolerant of
ambiguity.
True
3
1
.
Evanston Cable Television has decided to
offer a one-hour appointment window for
customers needing installation or repair
of its service, which will require them to
have several technicians on call.
Evanston hopes this practice will give
them an advantage over the competition,
none of whom have adopted such a
practice. It is introducing a(n) ______
change.
radically
innovative
3
2
.
Even when it comes to technology-
induced change, OD can be helped by
opening communication and dealing with
stress.
True
3
3
.
The first step of the OD process is
evaluation, which uses employee
surveys, interviews, and observation to
ascertain attitudes and problem areas.
False
3
4
.
The four areas in which change is most
apt to be needed are people, technology,
structure, and strategy.
True
3
5
.
Frisco Recreational Vehicles recently
instituted cross-functional teams to
develop new products. Team members
are spread across the country, so it is
expensive and time consuming for people
to travel to headquarters to meet. The
company would benefit most from a
change in ______ involving
technolog
y; teams
meeting
"virtually"
through
electronic
media.
3
6
.
Great Plains Credit Union has decided
that tellers must rotate through a new
weekend shift on Saturday afternoons
since several of its competitors in the
area have recently begun to offer these
hours to customers. This is a(n) ______
change.
innovative
3
7
.
Hard data about absenteeism, turnover,
and profitability are used in the
intervention stage of the OD process.
False
38. Hasbro's move to create a version of its
Monopoly game for iPad for technology-
obsessed children is an example of
proactive change
True
39. Having employees that experiment may
limit an organization's ability to learn from
failure.
False
40. Hollywood Hair recently introduced a new
acai berry moisture shampoo. Wenling,
director of new product development, has
just reviewed the dismal results. It appears
that her team did adequate research on the
product's acceptance by consumers prior
to its introduction and is confused by the
outcome. Wenling should
reward her
team for their
effort.
41. The Human Resources manager at the Apex
Golf and Tennis Club has just calculated the
employee absenteeism rate for 2012, and it
is 25% higher than it was in 2010 and 2011.
He should
address job
design and
ways to deal
with work
overload.
42. An important component of dealing with True
change is to allow grieving over the loss of
old ways
43. In 1961, Procter & Gamble introduced the
first affordable, readily-available disposable
diaper called Pampers. At that time,
Pampers were an example of a radical
innovation.
True
44. The increasing diversity of the American
workforce is an example of a(n) ______
force for change.
demographic
45. Information is rapidly becoming the new
competitive advantage.
False
46. Innovation can be fostered by withholding
raises or promotions from those whose
attempts to innovate are not successful.
False
47. Innovation differs from creativity or
invention in that it requires useful
application.
True
48. Innovation most often happens in a
"eureka" moment of epiphany.
False
49. An innovative change involves ______
complexity, cost, and uncertainty.
moderate
50. Innovative change is the introduction of a
practice that is new to the organization.
True
51. Innovative change is the least threatening
type of change and is therefore least likely
to create resistance.
False
52. In OD, combined interventions have been
found to work better than single
interventions
True
53. Inside forces for change include which of
the following?
Low
productivity
5
4
.
Intervention is the treatment phase of
OD in which problems are corrected.
True
5
5
.
In the context of change, technology
refers to computer technology used to
False
gain a competitive advantage.
5
6
.
In the OD process, feedback is used to
refine the diagnosis.
True
5
7
.
In the refreezing stage of change of
Lewin's change model, employees need
to be given new information,
perspectives, and models for behavior.
False
5
8
.
Introducing a practice that is new to the
industry is called a(n) ______ change.
radically
innovative
5
9
.
The invention of a machine to make
plastic corks for wine bottles has
severely affected companies that
produce traditional cork. This is an
example of a(n) ______ force for
change.
technologic
al
6
0
.
In which of the following situations
would OD techniques be the most
helpful?
Assisting
employees
in dealing
with
stressful
situations.
6
1
.
________ is an emotional/behavioral
response to real or imagined threats to
an established work routine.
Resistance
to change
6
2
.
Job dissatisfaction within an
organization can be an indicator that
change is needed.
True
6
3
.
Kotter proposed which of the following
for organization change?
Eight steps
for leading
organization
al change.
6
4
.
Kotter's change step of anchoring new
approaches in the culture corresponds
to refreezing in Lewin's model.
True
6
5
.
Kotter's research reveals that
management of organizational change
is more essential than leadership
throughout it.
False
6
6
.
Lewin's change model consists of three
stages:
unfreezing,
changing,
and
refreezing.
6
7
.
Maid to Clean is considering
implementing a system that will pay its
cleaning workers based on the number
of completed residential jobs, coupled
with satisfactory ratings on random
inspections to ensure quality. Managers
believe that this will reduce labor costs.
Maid to Clean is focusing on changing
employee
performanc
e.
68. The management department at a local
university began posting all assignments and
other class materials to a course
management website instead of creating a
packet for students to purchase each term.
This is a(n) ______ innovation.
process
69. A managerial innovation that improves the
efficiency of a company's cross-functional
teams would be considered a(n) ______
innovation.
process
70. Managers at Lucky Peach magazine are in
the process of cross training entry-level
employees to be able to take phone orders or
answer customer questions, and to process
orders in overflow situations. The company
is changing its
skills.
71. Managers' behavior is one type of inside
force for change in the organization.
True
72. Marc, an OD consultant, is visiting Cassidy
Engineering a year after he assisted them in
making changes to their employee incentive
plan. Now he is comparing sales and
turnover data from the last three years to the
current year. Marc is in the ______ stage of
evaluation
OD.
73. The marketplace is becoming more
homogeneous and moving toward more
similar products.
False
74. Mattress Emporium has had several
incidents lately in which its drivers became
lost when attempting deliveries. The drivers
have no GPS or other access to
computerized information and rely on the
customers themselves for directions.
Mattress Emporium probably needs to
change its
technology.
75. Mistrust between change agents and
employees can cause failure of well-
conceived changes
True
76. The most complex, costly, and uncertain kind
of change is known as radically innovative
change.
True
77. The most effective way to handle rewards for
innovation is to provide them at the end of a
successful project.
False
78. Most organizations experience innovation as
a matter of course; it happens naturally as
part of everyday business.
False
79. The need for change comes solely from
outside the organization.
False
8
0
.
Nonmanagerial employees at Kennedy
Steel belong to a union. The union has
come close to striking several times over
the years, and labor negotiations have
recently been very tense. Kennedy likely
needs to focus on changing
forces
originating
inside the
organizatio
n.
8
1
.
OD focuses specifically on the
technology aspects of change
False
8
2
.
An OD intervention that worked in the
United States is likely to work equally
well around the world because the
False
practices are very fundamental to human
nature.
8
3
.
Once you have been able to gain allies
and overcome employee resistance,
excellent ______ will be a key to
fostering innovation.
execution
8
4
.
One of the primary situations in which
OD is used is when adapting to mergers.
True
8
5
.
One of the reasons employees resist
change is fear of the unknown.
True
8
6
.
One of the strengths of Virgin Group Ltd.
is its ability to enter new businesses
quickly.
True
8
7
.
One step for fostering innovation is
gaining allies by communicating your
vision.
True
8
8
.
An organizational culture that celebrates
failure helps foster innovation
True
8
9
.
Organizational development is often put
into practice by a
change
agent.
9
0
.
Patagonia was satisfied with its OD
intervention to become greener.
False
9
1
.
People are generally comfortable with
and embrace change, even change in
apparently major matters
False
9
2
.
People changes in an organization are
not required until that organization
reaches about 20 people in size, when
the level of specialization reaches a
critical point.
False
9
3
.
Peter, the owner and lead accountant at a
tax preparation firm, is changing the
work schedule of his long-term
employees for the months of March and
April, the company's busiest time. He is
requiring work on weekends for
everyone, using the same basic schedule
hardly
upset or
not upset
at all.
as last year. Peter should expect that his
employees will be
9
4
.
Proactive change involves making
carefully thought-out changes in
anticipation of possible or expected
problems or opportunities.
True
95. The process by which a company
compares its performance with that of
high-performing organizations is called
benchmarking.
96. A product innovation is a change in the
way a product or service is conceived,
manufactured, or disseminated.
False
97. Putting an end to servant leadership is a
change that is likely to improve
manager-employee relationships.
False
98. The question "What shall we do about
the problem?" would most likely be
asked during the ______ stage of OD.
intervention
99. Radical innovation is the creation of
products, services, or technologies that
replace existing ones.
True
100. Reactive change is carefully thought out. False
101. Recently many older workers who had
planned to retire soon decided to keep
working longer. This is an example of
a(n) ______ force for change.
social or
political
102. The recent structural trend is toward a
taller organizational hierarchy.
False
103. The record industry has been forced into
a ______ change because of the
prevalence and ease of illegally
downloading music.
strategy
104. The reintroduction of a familiar practice
within the same organization is called
a(n)
adaptive
change.
105. Researchers working on hydrogen fuel radical
cells hope that this could be a(n) ______
innovation, leading to a clean, renewable
energy source, and reducing
dependence on depleting fossil fuels
with their adverse impact on the global
environment.
106. Sabotage can be a form of resistance to
change in the workplace.
True
107. Saitou Insurance is about to install a new
computer system that will change the
way claims adjusters settle claims.
Adjusters will be able to do the
adjustment and issue the check right at
the scene of the accident. Saitou most
likely needs to focus on changing
employee
skills.
108. Secondhand shops suffering from a
recession-induced decline in thrift store
donations is an example of an outside
force for organizational change.
True
109. The self-serving bias can lessen an
employee's ability to learn from failure.
True
1
1
0
.
The set of techniques used for
implementing planned change to make
people and organizations more
effective is called
organization
al
developmen
t.
1
1
1
.
Successful large companies are more
able than other firms to survive and
prosper in an environment of radically
innovative change.
False
1
1
2
.
A technological innovation that
improves the speed of a computer's
microprocessor would be considered
a(n) ______ innovation.
product
1
1
3
.
The three most important ways to
encourage innovation are by providing
the right organizational culture, a
team-based structure, and creative
False
talent.
1
1
4
.
The three steps of the OD process are
diagnosis, experimentation, and
adaptation.
False OD
managers
and
consultants
follow a
medical-like
model
1
1
5
.
Tirzah, an OD consultant, is working
with members of with a cross-
functional team to help them build
cohesiveness and practice skills to
function better as a team. Tirzah is
conducting the ______ stage of OD.
intervention
1
1
6
.
The two types of change are practical
and theoretical.
False
1
1
7
.
Walmart's implementation of RFID, a
type of technology that allows it to
improve inventory tracking, is an
example of a(n) ______ change.
proactive
1
1
8
.
When it comes to failure in the
innovation process, Procter & Gamble
CEO A. G. Lafley suggests that the key
is to
fail early, fail
cheaply,
and don't
make the
same
mistake
twice.
1
1
9
.
Which of the following circumstances
is likely to increase the success of
OD?
Support of
top
managers.
1
2
0
.
Which of the following is an effective
way to deal with change and
innovation?
Have the
courage to
follow your
ideas.
1
2
1
.
Which of the following is an example
of a force for change originating
outside the organization?
Social
pressures
122. Which of the following
is an example of a
proactive change?
Ciara explores improvements in
bonus structures with her staff and
begins to implement them despite
the fact that her employees are
generally content.
123. Which of the following
is not a leading reason
that employees resist
change?
Lack of personal ethics
124. Which of the following
is not an area in which
change is often
needed?
Information
125. Which of the following
is not an inside force
that indicates
organizational change
might be needed?
Increased competition
126. Which of the following
is not an interacting
factor that affects the
level of resistance to
change?
Longevity of the change agent.
127. Which of the following
is not a supertrend
shaping the future of
business?
Information becoming a
competitive advantage.
128. Which of the following
is not a way to
encourage innovation?
Withholding raises and promotions
when innovation attempts don't
work out.
129. Which of the following
is not one of Scott
Berkun's seeds of
innovation for
organizations?
Philanthropy
130. Which of the following
is not one of the
primary uses of OD?
Improving recruitment
131. Which of the following Employees that blame others for
is the factor that most
reduces an
organization's ability to
learn from failure?
failure.
132. Which of the following
sequences best
describes how a
manager can foster
innovation in an
organization?
Recognize problems, gain allies,
overcome resistance, execute well
1
3
3
.
While customers may act as a force for change, shareholders support stability. F
al
se
1
.
According to Harvard professor Constance Bagley, ethical decisions can be
facilitated with a(n)
A. goal statement.
B. improved legal department.
C. cross-department task force.
D. decision tree.
E. brainstorming session.
D.
deci
sion
tree.
2
.
The ______ a group is, the ______ the quality of the decision.
A. more diverse; lower
B. larger; lower
B.
larg
er;
lowe
r
C. more confident; higher
D. more knowledgeable; lower
E. more creative, lower
3
.
Alexis manages a clothing store in the mall. They were understaffed, and she
thought she would have to work all day and help close the store that evening
until a young man came in for an application around noon. Alexis told him he
could have the job if he could come back at 4 p.m. to begin work. Here, Alexis
was engaged in
A. relaxed avoidance.
B. confirmation bias.
C. satisficing.
D. heuristics.
E. analytics.
C.
satis
ficin
g.
4
.
Amanda was asked by her boss to create a handbook for new hires because
several employees had recently complained, saying they felt lost when they first
started because procedures didn't seem to be formalized. Amanda herself had
not felt that way, perhaps because she has a
A. high tolerance for ambiguity.
B. value orientation focused on people.
A.
high
toler
ance
for
ambi
guity
.
C. conceptual decision style.
D. high propensity for risk.
E. low value orientation.
5
.
An analytical decision-making style reflects a person who is ______ in his
value orientation and ______ in his tolerance for ambiguity.
A. task/technical; high
B. task/technical; low
C. people/social; high
D. people/social; low
E. managerial; low
A.
task/techni
cal; high
6
.
Analytics have been used in baseball and basketball to find undervalued
players that could help teams that had limited resources to pay superstars
TRUE
7
.
Analyzing the underlying causes of a problem or an opportunity is called
diagnosis
TRUE
8
.
Anders has assembled a task force that is composed of people who don't
know each other well. He should expect this group to make better
decisions if
A. it is a large group.
B. the members have common knowledge.
B. the
members
have
common
knowledge
.
C. the group is very confident.
D. time pressure is high.
E. individuals have unique, specialized knowledge.
9
.
Angelina is interviewing for an open position since she recently let go an
employee for excessive absenteeism. Though she thinks that Ivy is the
best candidate for the job, she has small children, which seemed to be the
source of the last employee's absenteeism. Angelina is reluctant to hire
Ivy, which is a(n) ______ bias.
A. anchoring and adjustment
B. confirmation
C. availability
D. representativeness
E. escalation of commitment
D.
representa
tiveness
1
0
.
As Janine prepares to perform Ian's performance review, she carefully
reviews notes she made throughout the year, rather than relying just on what
she remembers. Janine is attempting to avoid the ______ bias.
A. sunk-cost
B. adjustment
D.
availa
bility
C. representativeness
D. availability
E. escalation of commitment
1
1
.
Because Greg and Karen were having an argument about the order of their
respective projects on the website, they were unable to work with the rest of
the management team to come up with a staffing schedule. This is an
example of what potential problem that occurs in groups?
A. Goal displacement
B. Satisficing
C. Groupthink
D. Heuristics
E. Availability bias
A.
Goal
displa
ceme
nt
1
2
.
Being "loss adverse" and hating to admit you're wrong can contribute to the
escalation of commitment bias.
TRUE
1
3
.
Brainstorming is a technique used to help groups generate multiple ideas
and alternatives for solving problems.
TRUE
1
4
.
Capital One uses predictive modeling by conducting experiments to evaluate
which customers will sign up for credit cards and pay back their debt
TRUE
1
5
.
Cara was enthusiastic about the new decision technique being used at her
office. Everyone gathered in a room with their computers and typed
responses anonymously. These appeared on the screen in the front of the
room. Cara felt comfortable participating fully even though she was new to
the company, and by the great number of comments, it seemed that everyone
C. a
group-
driven
comp
uter-
else did, too. Cara participated in
A. the Delphi technique.
B. collaborative management.
C. a group-driven computer-aided system.
D. a chauffeur-driven computer aided system.
E. brainstorming.
aided
syste
m.
1
6
.
Carla heard from a client that a product similar to a popular one at her retail
store was now at Walmart, imported from China, and costing just over half of
her sales price. But Carla isn't really worried because she believes in her
customers' loyalty, so she has no plans to make changes. Carla is practicing
A. relaxed change.
B. defensive avoidance.
C. postponed action.
D. relaxed avoidance.
E. delayed decision.
D.
rela
xed
avoi
dan
ce.
1
7
.
Casey has a simple rule that he follows when it comes to new hiring; if four or
more of his staff are working 20% or more overtime, he hires another
employee. Casey is using
B.
heur
istic
A. relaxed change.
B. heuristics.
C. the Delphi technique.
D. rational models.
E. brainwriting.
s.
1
8
.
Charlie has a reputation for being slow to reach a final decision but being able
to decide a reasoned course of action regardless of the uncertainty. He is very
thorough in collecting information and evaluating more alternatives than other
managers are. Charlie is most likely ______ in his decision-making style.
A. analytical
B. Behavioral
C. Conceptual
D. directive
E. relaxed
A.
anal
ytica
l
1
9
.
The concept of "bounded rationality" is most closely related to the _________
model of decision making.
A. classical
B. rational
C.
Sati
sfici
ng
C. Satisficing
D. Incremental
E. intuition
2
0
.
The conceptual style of decision making is the most people oriented of the
styles
FAL
SE
2
1
.
Consensus occurs when group members are able to express their opinions
and reach agreement to support the final decision
TRUE
2
2
.
A cost-benefit matrix is a graph of decisions and their possible
consequences and is used to create a plan to reach a goal
FALSE
2
3
.
Customers who experience poor customer service are more likely to tell the
company about it than to tell family or friends
FALSE
2
4
.
Diagnosis is used in which stage of the rational decision-making model?
A. Identify the problem or opportunity
B. Think up alternative solutions
C. Evaluate alternatives
D. Select a solution
E. Implement a solution
A.
Identify
the
problem
or
opportu
nity
2
5
.
A directive individual takes longer to make a decision than an analytical
one
FALSE
2
6
.
A disadvantage of group-aided decision making is that groups tend to
suppress an individual's intellectual stimulation and creativity
FALSE
2
7
.
The drawback of using the intuition model of decision making is that it can
be difficult to convince others that your decision makes sense
TRUE
2
8
.
Erik has been putting off a decision about firing several workers who have
been ignoring safety regulations on the factory floor. After all, he thinks, his
boss will eventually notice and take action. Erik is experiencing a(n) ______
reaction.
A. relaxed change
B. relaxed avoidance
C. defensive avoidance
D. unresponsive
E. delayed change
C.
defensiv
e
avoidan
ce
2
9
.
Evidence shows that firms that announce layoffs have higher stock prices
than their peers, both in the near term and over time
FALSE
3
0
.
Experts may make irrational decisions because they are unable to see
things from an outsider's perspective
TRUE
3
1
.
Explain evidence-based decision
making. Name at least four of the
seven implementation principles
identified by Pfeffer and Sutton to
help companies that are
committed to evidence-based
management
Evidence-based decision making means managers
make decisions based on what actually works. They
face the hard facts and use the best evidence to help
navigate the competitive environment.
Pfeffer and Sutton identify seven implementation
principles to help companies that are committed to
using evidence-based management:
1. Treat your organization as an unfinished
prototype.
2. No brag, just facts.
3. See yourself and your organization as outsiders
do.
4. Evidence-based management is not just for senior
executives.
5. Like everything else, you still need to sell it.
6. If all else fails, slow the spread of bad practice.
7. The best diagnostic question: what happens when
people fail?
3
2
.
Fawaz is contemplating a couple
of new options for the order
takers that he manages. There is
no great urgency in the situation;
he just needs to have a procedure
in place within a couple of
months. Fawaz would be wise to
make this decision by himself
FALSE
3
3
.
The final step in the rational
decision-making process is to
implement and evaluate the
chosen solution
TRUE
3
4
.
The first step in the rational
decision making process is to
think up alternative solutions
FALSE
3
5
.
For implementation of a chosen
solution in decision making to be
successful, you need to plan
carefully and be sensitive to those
affected
TRUE
3
6
.
Give at least four reasons that it is
difficult to use evidence-based
decision making
Despite your best intentions, it's hard to bring the
best evidence to bear on your decisions. Among the
reasons: (1) There's too much evidence. (2) There's
not enough good evidence. (3) The evidence doesn't
quite apply. (4) People are trying to mislead you. (5)
You are trying to mislead you. (6) The side effects
outweigh the cure. (7) Stories are more persuasive,
anyway
3
7
.
A graph of decisions and their
possible consequences is known
as a(n)
A. decision tree.
B. Gantt chart.
C. results chart.
D. outcome matrix.
E. fishbone diagram.
A. decision tree.
3
8
.
Group-driven computer-aided
decision systems ask participants
to answer predetermined
questions on electronic keypads
or dials
FALSE
3
9
.
Groups make better decisions
than most individuals acting alone
TRUE
4
0
.
Having just spent $1,500 for a new
engine for his old car, Danilo now
learns his transmission needs to be
replaced. He decides to junk the car
now, rather than repair it. Danilo has
avoided the __________ bias.
A. anchoring and adjustment
B. confirmation
E. escalation of commitment
C. availability
D. representativeness
E. escalation of commitment
4
1
.
Heuristics are strategies that
simplify the process of making
decisions
TRUE
4
2
.
Heuristics is a technique in which
members of a group come together
over a computer network to
generate ideas and alternatives
FALSE
4
3
.
The idea that decision makers find
the notion of an actual loss more
painful than giving up the possibility
of a gain is called
A. a heuristic.
B. an availability bias.
C. a representativeness bias.
D. the prospect theory.
E. satisficing.
D. the prospect theory.
4
4
.
Identify the assumptions of the
rational decision-making model. Do
these hold true in most situations?
The assumptions are:
1. There is complete information and no
uncertainty.
2. Logical and unemotional analysis is possible.
3. The best decision for the organization will be
chosen.
The assumptions may not hold true in most
situations. According to the research by Herbert
Simon, managers cannot truly act logically
because of bounded rationality. Constraints
include complexity, time, cognitive capacity, and
imperfect or too much information, among others
4
5
.
Identify the four general decision making
styles. Explain the two primary
characteristics which define each.
1. Directive: People with a directive style
have a low tolerance for ambiguity and are
oriented toward task and technical
concerns in making decisions.
2. Analytical: People with an analytical style
have a high tolerance for ambiguity and are
oriented toward task and technical
concerns in making decisions.
3. Conceptual: People with a conceptual
style have a high tolerance for ambiguity
and are oriented toward people and social
concerns in making decisions.
4. Behavioral: People with a behavioral
style have a low tolerance for ambiguity and
are oriented toward people and social
concerns in making decisions.
4
6
.
Identify the steps of rational decision
making
The steps are:
Identify the problem/opportunity.
Think up alternative solutions.
Evaluate the alternatives and make a
decision.
Implement and evaluate the solution
chosen.
4
7
.
If a chosen alternative is implemented and
it does not appear to be working, you may
need to give it more time
TRUE
4
8
.
Importance of the situation, the credibility
of the information about it, and the
urgency of it should be considered in the
decision about whether to decide
TRUE
4
9
.
The incremental model is a nonrational
model of decision making
TRUE
5
0
.
The incremental model of decision making
suggests that managers make decisions
by
A. using processes that have worked in
past experience.
B. experimenting with alternatives in a
controlled setting, one by one.
C. choosing something that is "good
enough."
D. taking small steps to alleviate a
problem.
E. involving several lower-level
employees.
D. taking small steps to alleviate a problem.
5
1
.
In deciding to decide about a problem or
opportunity, a manager should evaluate
the importance of the situation, the
credibility of the information, and
A. the equitability of the outcomes.
B. the availability of heuristics.
C. the urgency of the situation.
C. the urgency of the situation.
D. the cost of the solution.
E. the ethics of making no change.
5
2
.
In making decisions, ethical concerns need to
be considered. Identify and explain how a
decision tree would assist the manager in
making ethical decisions
decision tree is a graph of decisions
and their possible consequences, and
is used to help with ethical decision
making. The manager would ask
several questions: Is the proposed
action legal? If yes, does the proposed
action maximize shareholder value? If
yes, is the proposed action ethical? If
no, would it be ethical NOT to take the
proposed action?
5
3
.
In the final stage of the rational model of
decision making, you should
A. provide justification for the choice.
B. select a solution.
C. seek high-level support.
D. evaluate the results.
E. identify the winners and losers.
D. evaluate the results.
5
4
.
In time-critical situations, satisficing may be a
good approach to decision making
TRUE
5
5
.
Intuition based on feelings rather than
expertise, or the involuntary emotional
TRUE
response to those feelings, is known as
automated experience
5
6
.
It has been discovered that an overseas
manufacturing facility your company uses has
been employing child labor despite your
position against it. You are contemplating
relocating your manufacturing to another
country where costs are somewhat higher but
workplace standards are more tightly
controlled. In using Bagley's ethical decision
tree, you determine it would be unethical NOT
to relocate, so you should
A. relocate the facility, but don't tell
shareholders about potentially smaller profits.
B. warn the manufacturer that you will relocate
should a violation occur again.
C. continue to use the facility, despite your
objections, because this will maximize
shareholder value.
D. relocate the facility, and tell the
shareholders how this will affect their returns.
E. continue to use the facility, because it is
benefitting your company, and all workers,
even underage ones.
D. relocate the facility, and tell the
shareholders how this will affect their
returns.
5
7
.
Jenna manages a retail store and she has been noticing long lines at checkout
lately. She is unsure about increasing staffing levels right now, so she
chooses to reconfigure the physical orientation of the checkout space to
alleviate the problem for the time being. Jenna is using the ________ model.
A.
Incre
ment
al
A. Incremental
B. coalition
C. rational
D. predictive
E. intuition
5
8
.
Jerome's accounts payable department is behind schedule as the month-end
close is approaching. This has been happening every month, but he hasn't
found time to provide additional training. Instead he asks all of his employees
to work eight hours of overtime that week and reassigns some tasks. This is
an example of using the ________ model.
A. rational
B. predictive
C. intuition
D. Incremental
E. coalition
D.
Incre
ment
al
5
9
.
Karl is very creative and prefers to look at the long-term issues when making a
decision. He considers a wide variety of possible actions based on an open
mind about the possibilities. Sometimes his coworkers find him indecisive
because of these tendencies. Karl is probably ______ in his decision-making
style.
C.
Conc
eptu
al
A. analytical
B. Behavioral
C. Conceptual
D. directive
E. relaxed
6
0
.
Keep in mind the importance of maintaining group relations; don't stand in the
way of a group trying to reach consensus
FALS
E
6
1
.
Making a choice without the use of conscious thought or logical interference
is called
A. reactive decision.
B. irrational insight.
C. intuition.
D. instinctual choice.
E. heuristics.
C.
intuiti
on.
6
2
.
Managers at Thomas Canyon Credit Union have given employees raises
year after year based on what they had given the year before, even
though now their employees were quite underpaid compared to similar
positions with other credit unions. This is an example of a(n)
A.
anchoring
and
adjustmen
t bias.
A. anchoring and adjustment bias.
B. escalation of commitment bias.
C. sunk-cost bias.
D. availability bias.
E. representativeness bias.
6
3
.
Managers tend to give more weight to more recent behavior. This is due
to the
A. heuristic bias.
B. halo effect.
C. recency effect.
D. availability bias.
E. representativeness bias.
D.
availability
bias.
6
4
.
Many investment advisors attribute their successful outcomes to skill,
even when it is more likely luck, which is an example of which bias?
A. Overconfidence.
B. Escalation of commitment bias.
A.
Overconfid
ence.
C. Hindsight.
D. Availability.
E. Framing.
6
5
.
Meg hired a great candidate from UCLA who has a big career ahead, and
every year since Meg insists on going on a recruiting visit to that
campus. Meg is convinced that hiring from UCLA in the future will
produce the same level of success. This is an example of a(n)
A. heuristic bias.
B. professional effect.
C. anchoring effect.
D. availability bias.
E. representativeness bias.
E.
representa
tiveness
bias.
6
6
.
Middle and supervisory managers may be a source of resistance in
participatory management
TRU
E
6
7
.
Most managers have just one dominant decision-making style FAL
SE
6
8
.
Nicole and other managers in her firm have some ties to Europe and are
investigating opportunities for global expansion. They are struggling to
understand the risks, given the complexity of world markets today and recent
global instabilities. The difficulty Nicole's team is facing prevents perfectly
rational decision making, and is an example of
B.
bou
nde
d
ratio
nalit
A. risk aversion.
B. bounded rationality.
C. groupthink.
D. defensive avoidance.
E. anchoring and adjustment.
y.
6
9
.
Nonrational models of decision making describe how managers should make
decisions rather than how they actually do
FAL
SE
7
0
.
One problem with the incremental model is that temporary steps may actually
impede a beneficial long-term solution
TRU
E
7
1
.
Opportunities should be identified in the alternative evaluation stage of the
decision-making process
FAL
SE
7
2
.
Participative management has a large effect on job performance and job
satisfaction
FAL
SE
7
3
.
Passing the buck or procrastinating about a decision are examples of which
type of reaction to a challenge?
A. Panic
B. Relaxed avoidance
C. Relaxed change
D. Decreased involvement
E.
Defe
nsiv
e
avoi
dan
ce
E. Defensive avoidance
7
4
.
People with a low tolerance for ambiguity and an orientation toward task and
technical concerns in making decisions have an analytical decision-making
style
FAL
SE
7
5
.
A person who is oriented toward people and social concerns and has a low
tolerance for ambiguity is ______ in her decision-making style.
A. analytical
B. relaxed
C. Conceptual
D. directive
E. Behavioral
E.
Beh
avio
ral
7
6
.
A person who is oriented toward task and technical concerns and
has a low tolerance for ambiguity is ______ in his decision-making
style.
A. analytical
B. Behavioral
C. Conceptual
D. directive
D. directive
E. heuristic
7
7
.
A person with a conceptual decision-making style is __________ in
her value orientation and __________ in her tolerance for ambiguity.
A. managerial; high
B. task/technical; low
C. people/social; high
D. people/social; low
E. managerial; low
C.
people/social;
high
7
8
.
A person with a directive decision style is efficient, logical, practical,
and systematic in her approach to solving problems
TRUE
7
9
.
A person with high tolerance for ambiguity has
A. a high need for structure or control.
B. a strong people orientation.
C. an analytical mind.
D. defensive avoidance tendencies.
E. comfort with uncertain situations.
E. comfort with
uncertain
situations.
8
0
Politics has provided evidence that appeals to emotion are more TRUE
.effective than appeals to logic in decision making
8
1
.
Portfolio analysis is an example of the incremental model of decision
making
FALSE
8
2
.
The process of identifying and choosing between alternative courses
of action is known as option evaluation
FALSE
8
3
.
The process of involving employees in setting goals, making decisions,
solving problems, and making changes is called
A. conjoint management.
B. escalation of commitment.
C. satisficing.
D. goal displacement.
E. participative management.
E.
particip
ative
manag
ement.
8
4
.
Putting questions to a vote is a good method to help a group reach
consensus
FALSE
8
5
.
The rational model of decision making assumes that managers will choose
the available alternative that best supports their existing beliefs
FALSE
8
6
.
The rational model of decision making is also called the ______ model.
A. Balanced
B. satisficing
C. Incremental
D.
classic
al
D. classical
E. intuitional
8
7
.
The rational model works well even with the incomplete information and
uncertainty about consequences that managers often face
FALSE
8
8
.
A recent study says that the world's information is doubling every seven
years
FALSE
8
9
.
Redbox uses the large amount of data that it collects at its video and game
rental kiosks to determine ways to improve customer retention and to
encourage multiple rentals at the same time. The chain is using
A. quantitative decision making.
B. data correlation.
C. heuristics.
D. business analytics.
E. the Delphi technique.
D.
busine
ss
analyti
cs.
9
0
.
Relaxed change is one type of effective response for a manager to take when
confronted with a challenge
FALSE
9
1
.
Research on the effects of participative management (PM) on employees'
performance and satisfaction indicates that
A. PM has no effect on either.
B. PM
has a
small
positive
effect
on
both.
B. PM has a small positive effect on both.
C. PM has a large effect on satisfaction, but a small effect on performance.
D. PM has a large positive effect on both.
E. PM has a large effect on performance, but no significant effect on
satisfaction.
9
2
.
Risk propensity is the willingness to gamble or to undertake risk for the
possibility of getting an increased payoff
TRUE
9
3
.
Robin is very worried about potentially having to lay off several of her staff.
She can't sleep well, her stomach is bothering her, and she snaps at her
employees. She doesn't know what to do but won't talk with anyone about it.
Robin is experiencing a ______ reaction to a challenge.
A. relaxed change
B. defensive avoidance
C. panic
D. deciding to decide
E. heuristic
C.
panic
9
4
.
Ryan is an efficient manager who is very good at meeting his deadlines and
quite decisive. Still, his employees find him to be too controlling at times
and unable to see the long-term consequences of his actions. Ryan is most
likely ______ in his decision-making style.
E.
directiv
e
A. analytical
B. autocratic
C. Behavioral
D. Conceptual
E. directive
9
5
.
Sandra did an Internet search for Jamaican hotels when she was setting up
her vacation, but found over 7 million results, of which she could only
handle looking at about two pages. Sandra is operating under conditions of
bounded rationality
TRUE
9
6
.
Satisficing occurs when a manager takes small, short-term steps to alleviate
a problem.
FALSE
9
7
.
Savannah is a warm and likeable manager who is extremely supportive of her
employees, but she sometimes doesn't say no when she needs to and is
somewhat passive in enforcing her decisions. Her decision-making style is
most likely
A. analytical.
B. heuristic.
C. behavioral.
D. conceptual.
E. directive.
C.
beha
viora
l.
9
8
Scott has received training in resolving ethical dilemmas and currently
oversees the development of an ethical code for his workplace. Scott is a(n)
...
.
A. member of the principles board.
B. morality team member.
C. social responsibility chief.
D. ethics officer.
E. chief executive officer.
9
9
.
Smaller-sized groups make higher-quality decisions TRU
E
1
0
0
.
Spencer talked with Allie after their task force meeting, and they discovered
that neither of them had been in favor of dropping some items from next
year's budget, yet neither spoke up. Both wanted to be supportive of the
group instead. This is an example of
A. goal displacement.
B. satisficing.
C. groupthink.
D. heuristics.
E. self-selection.
C.
grou
pthin
k
1
0
1
.
The stores of data so vast that conventional database management systems
cannot handle them and which instead require very sophisticated analysis
software and supercomputing-level hardware are known as
A.
big
data.
A. big data.
B. heuristics.
C. information escalation.
D. incremental diagnostics.
E. boundless resources.
1
0
2
.
Studies show that even severe life events have a negative impact on one's
sense of well-being for no more than about three months
TRUE
1
0
3
.
The tendency for decision-makers to be influenced by the way a situation
or problem is presented to them is known as the ________ bias.
A. overconfidence.
B. escalation of commitment bias.
C. hindsight.
D. availability.
E. framing.
E.
framing
1
0
4
.
The tendency for group members to agree for the sake of unanimity and
thus avoid accurately assessing the decision situation is called satisficing
FALSE
1The tendency of a group to settle on a decision that is "good enough" is B.
0
5
.
called
A. goal displacement.
B. satisficing.
C. groupthink.
D. heuristics.
E. pseudo-optimization.
satisficin
g.
1
0
6
.
To be compliant with current federal legislation, all for-profit companies
are required to have an ethics officer
FALSE
1
0
7
.
To effectively use evidence-based management, the more evidence you
can gather, the better
FALSE
1
0
8
.
Understanding how to use failure is an important implementation principle
for evidence-based management
TRUE
1
0
9
.
_________ uses physically dispersed experts who fill out questionnaires
to generate ideas and the judgments are combined into an expert
consensus.
A. Brainstorming
B. PM
C. TQM
E. The
Delphi
techniqu
e
D. Brainwriting
E. The Delphi technique
1
1
0
.
What are a manager's
options if the action she
decided to take isn't
working? Why should a
manager resist the urge to
"stick it out" when feedback
is negative?
If the action is not working, a manager should consider
giving it more time, changing the decision or its
implementation slightly, trying another alternative, or
starting over. But a manager should recognize that
"sticking it out" may reflect a sunk-cost or escalation of
commitment bias.
1
1
1
.
When a manager decides to
take no action in the belief
that there will be no great
negative consequences, she
is engaged in
A. limited reaction.
B. relaxed avoidance.
C. relaxed change.
D. decreased involvement.
E. defensive avoidance.
B. relaxed avoidance.
1
1
2
.
When a manager makes a
decision based on the strong
beliefs she already has, she
is guilty of a prior-hypothesis
bias
TRUE
1
1
When a manager realizes that A. relaxed change.
3
.
complete inaction will have
negative consequences but
opts for the first available
alternative that involves low
risk, it is called
A. relaxed change.
B. defensive avoidance.
C. postponed action.
D. relaxed avoidance.
E. delayed decision.
1
1
4
.
When evaluating alternatives
in decision making, you must
assess cost and quality and
also ask the question, "Is it
simple?
FALSE
1
1
5
.
When evaluating a solution in decision making, answering yes to which
of the following questions should cause you to reconsider choosing it?
A. Is there enough time?
B. Are the costs reasonable?
C. Is it ethical?
D. Is the technology available?
E. Do you
consider it
merely
"good
enough"?
E. Do you consider it merely "good enough"?
1
1
6
.
When managers add up all the money already spent on a project and
conclude it is too costly to simply abandon it, it is known as a(n)
________ bias.
A. anchoring and adjustment
B. confirmation
C. availability
D. representativeness
E. sunk cost
E. sunk cost
1
1
7
.
When managers use information that is readily available from memory
to make judgments, it is known as a confirmation bias
FALSE
1
1
8
.
When QVC experiments with which products it will sell on its television
shopping network and follows this up with analysis of why some sell
and others don't, it is using evidence-based management
TRUE
1
1
9
.
When then-president of Chrysler Bob Lutz ordered the development of
the Dodge Viper without supporting research but because it "just felt
right," he was using the incremental model of decision making
FALSE
1
2
0
.
Where time is of the essence, in most cases an individual should make
the decision rather than a group
TRUE
1
2
1
.
Which of the following characteristics of groups may lead to
groupthink?
C.
Overconfide
nce
A. Too little information available to the group
B. Errors in the information available to the group
C. Overconfidence
D. Disagreements among the members
E. Diversity in the group
\
1
2
2
.
Which of the following is a decision-making style based on the
dimensions of value orientation and tolerance for ambiguity?
A. professional
B. personal
C. technological
D. Behavioral
E. Mechanical
D. Behavioral
1
2
3
.
Which of the following is a disadvantage of group decision
making?
A. Lower commitment to the decision
E. Satisficing
B. Lower levels of confidence in judgments
C. Different perspectives
D. Greater discomfort with the final decision
E. Satisficing
1
2
4
.
Which of the following is a factor that helps participative
management work?
A. Top management is occasionally involved.
B. Employees trust managers.
C. PM is implemented without interference from TQM.
D. Employees work in interdependent jobs.
E. Employees need more training.
B. Employees
trust managers.
1
2
5
.
Which of the following is an advantage of group decision making?
A. Groupthink
B. Deeper commitment to the decision
C. Less thought required
B. Deeper
commitment to
the decision
D. A quicker decision
E. More flexibility in the final decision
1
2
6
.
Which of the following is an assumption upon which the
rational model of decision making rests?
A. Decision makers can logically evaluate the alternatives.
B. Consequences of any actions cannot be known.
C. Decision makers typically have emotional blind spots.
D. A decision maker will choose the option that is most
ethical.
E. Decision makers are unable to process all of the
available information.
A. Decision makers can
logically evaluate the
alternatives.
1
2
7
.
Which of the following is an implementation principle for
evidence-based management described by Pfeffer and
Sutton?
A. See yourself as outsiders do.
B. If all else fails, speed the spread of good practices.
C. Reserve evidence-based management for top
executives.
D. Treat your organization as a trophy.
A. See yourself as
outsiders do
E. Understand what happens when people succeed.
1
2
8
.
Which of the following is a practical guideline in
determining whether to use group decision making?
A. When it can encourage satisficing
B. When it can increase speed
C. When it can produce groupthink
D. When it can increase development
E. When a decision occurs infrequently
D. When it can increase
development
1
2
9
.
Which of the following is a step in the rational decision-
making model?
A. Seek consensus among leadership.
B. Identify the problem or opportunity.
C. Improve the chosen solution.
D. Test solutions on a small scale.
E. Implement a holding pattern.
B. Identify the problem or
opportunity.
1
3
0
.
Which of the following is characteristic of companies that
use analytics?
A. Use of predictive
modeling
A. Use of predictive modeling
B. Having a single, focused application for its use
C. Information overload
D. Use of competitive intelligence
E. Making decisions intuitively
1
3
1
.
Which of the following is NOT a hindrance to perfectly
rational decision making?
A. Conflicting goals
B. Imperfect information
C. Information overload
D. Limited cognitive capacity
E. Lack of intuition
E. Lack of intuition
1
3
2
.
Which of the following is NOT a reason why it is hard to
bring the best evidence to bear on your decisions?
A. Stories are more persuasive than evidence.
B. People are trying to mislead you.
C. The evidence leads to an unethical solution.
C. The evidence leads
to an unethical solution.
D. The evidence doesn't quite apply.
E. There's too much evidence.
1
3
3
.
Which of the following is NOT a recommended option when
you discover that an action is not working after a decision?
A. Give the chosen solution more time.
B. Abandon the solution in favor of the status quo.
C. Try another alternative.
D. Go back to the beginning of the decision-making process.
E. Change the chosen solution slightly.
B. Abandon the solution
in favor of the status
quo.
1
3
4
.
Which of the following is NOT a rule for brainstorming
suggested by IDEO?
A. Go for quality over quantity.
B. Defer judgment.
C. Stay focused on the topic.
D. Encourage wild ideas.
A. Go for quality over
quantity.
E. Be visual.
1
3
5
.
Which of the following is NOT one of the suggestions for
decision making recommended by management consultant
Odette Pollar?
A. Decide in a timely fashion.
B. Don't agonize over minor decisions.
C. Separate outcome from process.
D. Never stop gathering facts.
E. When overwhelmed, narrow your choices.
D. Never stop gathering
facts.
1
3
6
.
Which of the following is one of the nonrational models of
decision making?
A. Boundary
B. Classical
C. Goal displacement
D. Satisficing
E. Attitudinal
D. Satisficing
1
3
7
.
Which of the following is true about women investors? C. Their portfolios have
a higher average gain
than men's.
A. They tend to trade more often than men.
B. They do less research before investing than men.
C. Their portfolios have a higher average gain than men's.
D. They are increasingly being drawn to careers in finance.
E. They tend to chase "hot tips."
1
3
8
.
Which of the following questions about a
proposed action is NOT a key question in
Bagley's ethical decision tree?
A. Is it legal?
B. Does it maximize shareholder value?
C. Is it ethical?
D. Would it be ethical not to do it?
E. Should the effect of it be disclosed to
shareholders?
E. Should the effect of it be disclosed to
shareholders?
1
3
9
.
Which of the following responses to a
challenge would be considered most like
satisficing?
C. Relaxed change
A. Panic
B. Relaxed avoidance
C. Relaxed change
D. Decreased involvement
E. Defensive avoidance
1
4
0
.
Which of the following statements about
biased decision making is true?
A. Hindsight helps you correctly assess
what you should have known beforehand.
B. When you are making a decision and
you have considerable experience in that
area, you are then most likely to be
overconfident.
C. When confronted with a choice, people
with strong prior beliefs tend to make their
decisions based on their beliefs even if
their beliefs are false.
D. Sometimes a single event can allow you
to determine the trend.
E. You could confidently make a decision
about something by asking 20 of your
friends and deciding based on their
preferences.
C. When confronted with a choice, people
with strong prior beliefs tend to make their
decisions based on their beliefs even if
their beliefs are false.
1
4
1
.
Which of the following statements about group decision making is
true?
A. Individuals are always better than groups in decision making.
B. Groups are always better than individuals in decision making.
C. Groups minimize satisficing.
D. Groups are faster at making decisions.
E. Managers should utilize groups for decision making on a selective
basis.
E. Managers
should utilize
groups for
decision
making on a
selective
basis.
1
4
2
.
Women investors make trades much less often than men, do a lot
more research, and have better returns on average
TRUE
1
4
3
.
Yichao, a manager of a downtown hair salon, has been
procrastinating about a problem. Over the past year, his company has
seen a high rate of customer defections, and even the loss of some of
its best stylists. Still, he hasn't even begun to investigate the issue.
This is an indicator of relaxed avoidance.
FALSE
1
4
4
.
You can increase your ability to influence others by being aware of
decision-making styles
TRUE
1
4
5
.
You have surveyed all of your close friends, and they all prefer ice
cream to frozen yogurt. Thus you should be confident that everyone
prefers ice cream; that is, this is a representative sample of adequate
size
FALSE
1
.
According to Harvard professor Constance Bagley, ethical decisions can be
facilitated with a(n)
A. goal statement.
D.
deci
sion
tree.
B. improved legal department.
C. cross-department task force.
D. decision tree.
E. brainstorming session.
2
.
The ______ a group is, the ______ the quality of the decision.
A. more diverse; lower
B. larger; lower
C. more confident; higher
D. more knowledgeable; lower
E. more creative, lower
B.
larg
er;
lowe
r
3
.
Alexis manages a clothing store in the mall. They were understaffed, and she
thought she would have to work all day and help close the store that evening
until a young man came in for an application around noon. Alexis told him he
could have the job if he could come back at 4 p.m. to begin work. Here, Alexis
was engaged in
A. relaxed avoidance.
B. confirmation bias.
C.
satis
ficin
g.
C. satisficing.
D. heuristics.
E. analytics.
4
.
Amanda was asked by her boss to create a handbook for new hires because
several employees had recently complained, saying they felt lost when they first
started because procedures didn't seem to be formalized. Amanda herself had
not felt that way, perhaps because she has a
A. high tolerance for ambiguity.
B. value orientation focused on people.
C. conceptual decision style.
D. high propensity for risk.
E. low value orientation.
A.
high
toler
ance
for
ambi
guity
.
5
.
An analytical decision-making style reflects a person who is ______ in his
value orientation and ______ in his tolerance for ambiguity.
A. task/technical; high
B. task/technical; low
C. people/social; high
A.
task/techni
cal; high
D. people/social; low
E. managerial; low
6
.
Analytics have been used in baseball and basketball to find undervalued
players that could help teams that had limited resources to pay superstars
TRUE
7
.
Analyzing the underlying causes of a problem or an opportunity is called
diagnosis
TRUE
8
.
Anders has assembled a task force that is composed of people who don't
know each other well. He should expect this group to make better
decisions if
A. it is a large group.
B. the members have common knowledge.
C. the group is very confident.
D. time pressure is high.
E. individuals have unique, specialized knowledge.
B. the
members
have
common
knowledge
.
9
.
Angelina is interviewing for an open position since she recently let go an
employee for excessive absenteeism. Though she thinks that Ivy is the
best candidate for the job, she has small children, which seemed to be the
source of the last employee's absenteeism. Angelina is reluctant to hire
Ivy, which is a(n) ______ bias.
A. anchoring and adjustment
B. confirmation
D.
representa
tiveness
C. availability
D. representativeness
E. escalation of commitment
1
0
.
As Janine prepares to perform Ian's performance review, she carefully
reviews notes she made throughout the year, rather than relying just on what
she remembers. Janine is attempting to avoid the ______ bias.
A. sunk-cost
B. adjustment
C. representativeness
D. availability
E. escalation of commitment
D.
availa
bility
1
1
.
Because Greg and Karen were having an argument about the order of their
respective projects on the website, they were unable to work with the rest of
the management team to come up with a staffing schedule. This is an
example of what potential problem that occurs in groups?
A. Goal displacement
B. Satisficing
A.
Goal
displa
ceme
nt
C. Groupthink
D. Heuristics
E. Availability bias
1
2
.
Being "loss adverse" and hating to admit you're wrong can contribute to the
escalation of commitment bias.
TRUE
1
3
.
Brainstorming is a technique used to help groups generate multiple ideas
and alternatives for solving problems.
TRUE
1
4
.
Capital One uses predictive modeling by conducting experiments to evaluate
which customers will sign up for credit cards and pay back their debt
TRUE
1
5
.
Cara was enthusiastic about the new decision technique being used at her
office. Everyone gathered in a room with their computers and typed
responses anonymously. These appeared on the screen in the front of the
room. Cara felt comfortable participating fully even though she was new to
the company, and by the great number of comments, it seemed that everyone
else did, too. Cara participated in
A. the Delphi technique.
B. collaborative management.
C. a group-driven computer-aided system.
D. a chauffeur-driven computer aided system.
E. brainstorming.
C. a
group-
driven
comp
uter-
aided
syste
m.
1
6
.
Carla heard from a client that a product similar to a popular one at her retail
store was now at Walmart, imported from China, and costing just over half of
D.
rela
her sales price. But Carla isn't really worried because she believes in her
customers' loyalty, so she has no plans to make changes. Carla is practicing
A. relaxed change.
B. defensive avoidance.
C. postponed action.
D. relaxed avoidance.
E. delayed decision.
xed
avoi
dan
ce.
1
7
.
Casey has a simple rule that he follows when it comes to new hiring; if four or
more of his staff are working 20% or more overtime, he hires another
employee. Casey is using
A. relaxed change.
B. heuristics.
C. the Delphi technique.
D. rational models.
E. brainwriting.
B.
heur
istic
s.
1
8
.
Charlie has a reputation for being slow to reach a final decision but being able
to decide a reasoned course of action regardless of the uncertainty. He is very
thorough in collecting information and evaluating more alternatives than other
managers are. Charlie is most likely ______ in his decision-making style.
A.
anal
ytica
l
A. analytical
B. Behavioral
C. Conceptual
D. directive
E. relaxed
1
9
.
The concept of "bounded rationality" is most closely related to the _________
model of decision making.
A. classical
B. rational
C. Satisficing
D. Incremental
E. intuition
C.
Sati
sfici
ng
2
0
.
The conceptual style of decision making is the most people oriented of the
styles
FAL
SE
2
1
.
Consensus occurs when group members are able to express their opinions
and reach agreement to support the final decision
TRUE
2
2
.
A cost-benefit matrix is a graph of decisions and their possible
consequences and is used to create a plan to reach a goal
FALSE
2
3
Customers who experience poor customer service are more likely to tell the FALSE
.company about it than to tell family or friends
2
4
.
Diagnosis is used in which stage of the rational decision-making model?
A. Identify the problem or opportunity
B. Think up alternative solutions
C. Evaluate alternatives
D. Select a solution
E. Implement a solution
A.
Identify
the
problem
or
opportu
nity
2
5
.
A directive individual takes longer to make a decision than an analytical
one
FALSE
2
6
.
A disadvantage of group-aided decision making is that groups tend to
suppress an individual's intellectual stimulation and creativity
FALSE
2
7
.
The drawback of using the intuition model of decision making is that it can
be difficult to convince others that your decision makes sense
TRUE
2
8
.
Erik has been putting off a decision about firing several workers who have
been ignoring safety regulations on the factory floor. After all, he thinks, his
boss will eventually notice and take action. Erik is experiencing a(n) ______
reaction.
A. relaxed change
B. relaxed avoidance
C. defensive avoidance
C.
defensiv
e
avoidan
ce
D. unresponsive
E. delayed change
2
9
.
Evidence shows that firms that announce layoffs have higher stock prices
than their peers, both in the near term and over time
FALSE
3
0
.
Experts may make irrational decisions because they are unable to see
things from an outsider's perspective
TRUE
3
1
.
Explain evidence-based decision
making. Name at least four of the
seven implementation principles
identified by Pfeffer and Sutton to
help companies that are
committed to evidence-based
management
Evidence-based decision making means managers
make decisions based on what actually works. They
face the hard facts and use the best evidence to help
navigate the competitive environment.
Pfeffer and Sutton identify seven implementation
principles to help companies that are committed to
using evidence-based management:
1. Treat your organization as an unfinished
prototype.
2. No brag, just facts.
3. See yourself and your organization as outsiders
do.
4. Evidence-based management is not just for senior
executives.
5. Like everything else, you still need to sell it.
6. If all else fails, slow the spread of bad practice.
7. The best diagnostic question: what happens when
people fail?
3
2
.
Fawaz is contemplating a couple
of new options for the order
takers that he manages. There is
no great urgency in the situation;
he just needs to have a procedure
in place within a couple of
months. Fawaz would be wise to
FALSE
make this decision by himself
3
3
.
The final step in the rational
decision-making process is to
implement and evaluate the
chosen solution
TRUE
3
4
.
The first step in the rational
decision making process is to
think up alternative solutions
FALSE
3
5
.
For implementation of a chosen
solution in decision making to be
successful, you need to plan
carefully and be sensitive to those
affected
TRUE
3
6
.
Give at least four reasons that it is
difficult to use evidence-based
decision making
Despite your best intentions, it's hard to bring the
best evidence to bear on your decisions. Among the
reasons: (1) There's too much evidence. (2) There's
not enough good evidence. (3) The evidence doesn't
quite apply. (4) People are trying to mislead you. (5)
You are trying to mislead you. (6) The side effects
outweigh the cure. (7) Stories are more persuasive,
anyway
3
7
.
A graph of decisions and their
possible consequences is known
as a(n)
A. decision tree.
B. Gantt chart.
C. results chart.
D. outcome matrix.
E. fishbone diagram.
A. decision tree.
3
8
Group-driven computer-aided FALSE
.decision systems ask participants
to answer predetermined
questions on electronic keypads
or dials
3
9
.
Groups make better decisions
than most individuals acting alone
TRUE
4
0
.
Having just spent $1,500 for a new
engine for his old car, Danilo now
learns his transmission needs to be
replaced. He decides to junk the car
now, rather than repair it. Danilo has
avoided the __________ bias.
A. anchoring and adjustment
B. confirmation
C. availability
D. representativeness
E. escalation of commitment
E. escalation of commitment
4
1
.
Heuristics are strategies that
simplify the process of making
decisions
TRUE
4
2
.
Heuristics is a technique in which
members of a group come together
over a computer network to
generate ideas and alternatives
FALSE
4
3
.
The idea that decision makers find
the notion of an actual loss more
painful than giving up the possibility
of a gain is called
D. the prospect theory.
A. a heuristic.
B. an availability bias.
C. a representativeness bias.
D. the prospect theory.
E. satisficing.
4
4
.
Identify the assumptions of the
rational decision-making model. Do
these hold true in most situations?
The assumptions are:
1. There is complete information and no
uncertainty.
2. Logical and unemotional analysis is possible.
3. The best decision for the organization will be
chosen.
The assumptions may not hold true in most
situations. According to the research by Herbert
Simon, managers cannot truly act logically
because of bounded rationality. Constraints
include complexity, time, cognitive capacity, and
imperfect or too much information, among others
4
5
.
Identify the four general decision making
styles. Explain the two primary
characteristics which define each.
1. Directive: People with a directive style
have a low tolerance for ambiguity and are
oriented toward task and technical
concerns in making decisions.
2. Analytical: People with an analytical style
have a high tolerance for ambiguity and are
oriented toward task and technical
concerns in making decisions.
3. Conceptual: People with a conceptual
style have a high tolerance for ambiguity
and are oriented toward people and social
concerns in making decisions.
4. Behavioral: People with a behavioral
style have a low tolerance for ambiguity and
are oriented toward people and social
concerns in making decisions.
4
6
.
Identify the steps of rational decision
making
The steps are:
Identify the problem/opportunity.
Think up alternative solutions.
Evaluate the alternatives and make a
decision.
Implement and evaluate the solution
chosen.
4
7
.
If a chosen alternative is implemented and
it does not appear to be working, you may
need to give it more time
TRUE
4
8
.
Importance of the situation, the credibility
of the information about it, and the
urgency of it should be considered in the
decision about whether to decide
TRUE
4
9
.
The incremental model is a nonrational
model of decision making
TRUE
5
0
.
The incremental model of decision making
suggests that managers make decisions
by
A. using processes that have worked in
past experience.
B. experimenting with alternatives in a
controlled setting, one by one.
D. taking small steps to alleviate a problem.
C. choosing something that is "good
enough."
D. taking small steps to alleviate a
problem.
E. involving several lower-level
employees.
5
1
.
In deciding to decide about a problem or
opportunity, a manager should evaluate
the importance of the situation, the
credibility of the information, and
A. the equitability of the outcomes.
B. the availability of heuristics.
C. the urgency of the situation.
D. the cost of the solution.
E. the ethics of making no change.
C. the urgency of the situation.
5
2
.
In making decisions, ethical concerns need to
be considered. Identify and explain how a
decision tree would assist the manager in
making ethical decisions
decision tree is a graph of decisions
and their possible consequences, and
is used to help with ethical decision
making. The manager would ask
several questions: Is the proposed
action legal? If yes, does the proposed
action maximize shareholder value? If
yes, is the proposed action ethical? If
no, would it be ethical NOT to take the
proposed action?
5
3
.
In the final stage of the rational model of
decision making, you should
A. provide justification for the choice.
B. select a solution.
C. seek high-level support.
D. evaluate the results.
E. identify the winners and losers.
D. evaluate the results.
5
4
.
In time-critical situations, satisficing may be a
good approach to decision making
TRUE
5
5
.
Intuition based on feelings rather than
expertise, or the involuntary emotional
response to those feelings, is known as
automated experience
TRUE
5
6
.
It has been discovered that an overseas
manufacturing facility your company uses has
been employing child labor despite your
position against it. You are contemplating
relocating your manufacturing to another
country where costs are somewhat higher but
workplace standards are more tightly
controlled. In using Bagley's ethical decision
tree, you determine it would be unethical NOT
to relocate, so you should
A. relocate the facility, but don't tell
shareholders about potentially smaller profits.
D. relocate the facility, and tell the
shareholders how this will affect their
returns.
B. warn the manufacturer that you will relocate
should a violation occur again.
C. continue to use the facility, despite your
objections, because this will maximize
shareholder value.
D. relocate the facility, and tell the
shareholders how this will affect their returns.
E. continue to use the facility, because it is
benefitting your company, and all workers,
even underage ones.
5
7
.
Jenna manages a retail store and she has been noticing long lines at checkout
lately. She is unsure about increasing staffing levels right now, so she
chooses to reconfigure the physical orientation of the checkout space to
alleviate the problem for the time being. Jenna is using the ________ model.
A. Incremental
B. coalition
C. rational
D. predictive
E. intuition
A.
Incre
ment
al
5
8
.
Jerome's accounts payable department is behind schedule as the month-end
close is approaching. This has been happening every month, but he hasn't
found time to provide additional training. Instead he asks all of his employees
to work eight hours of overtime that week and reassigns some tasks. This is
an example of using the ________ model.
D.
Incre
ment
al
A. rational
B. predictive
C. intuition
D. Incremental
E. coalition
5
9
.
Karl is very creative and prefers to look at the long-term issues when making a
decision. He considers a wide variety of possible actions based on an open
mind about the possibilities. Sometimes his coworkers find him indecisive
because of these tendencies. Karl is probably ______ in his decision-making
style.
A. analytical
B. Behavioral
C. Conceptual
D. directive
E. relaxed
C.
Conc
eptu
al
6
0
.
Keep in mind the importance of maintaining group relations; don't stand in the
way of a group trying to reach consensus
FALS
E
6
1
.
Making a choice without the use of conscious thought or logical interference
is called
C.
intuiti
on.
A. reactive decision.
B. irrational insight.
C. intuition.
D. instinctual choice.
E. heuristics.
6
2
.
Managers at Thomas Canyon Credit Union have given employees raises
year after year based on what they had given the year before, even
though now their employees were quite underpaid compared to similar
positions with other credit unions. This is an example of a(n)
A. anchoring and adjustment bias.
B. escalation of commitment bias.
C. sunk-cost bias.
D. availability bias.
E. representativeness bias.
A.
anchoring
and
adjustmen
t bias.
6
3
.
Managers tend to give more weight to more recent behavior. This is due
to the
D.
availability
bias.
A. heuristic bias.
B. halo effect.
C. recency effect.
D. availability bias.
E. representativeness bias.
6
4
.
Many investment advisors attribute their successful outcomes to skill,
even when it is more likely luck, which is an example of which bias?
A. Overconfidence.
B. Escalation of commitment bias.
C. Hindsight.
D. Availability.
E. Framing.
A.
Overconfid
ence.
6
5
.
Meg hired a great candidate from UCLA who has a big career ahead, and
every year since Meg insists on going on a recruiting visit to that
campus. Meg is convinced that hiring from UCLA in the future will
produce the same level of success. This is an example of a(n)
A. heuristic bias.
E.
representa
tiveness
bias.
B. professional effect.
C. anchoring effect.
D. availability bias.
E. representativeness bias.
6
6
.
Middle and supervisory managers may be a source of resistance in
participatory management
TRU
E
6
7
.
Most managers have just one dominant decision-making style FAL
SE
6
8
.
Nicole and other managers in her firm have some ties to Europe and are
investigating opportunities for global expansion. They are struggling to
understand the risks, given the complexity of world markets today and recent
global instabilities. The difficulty Nicole's team is facing prevents perfectly
rational decision making, and is an example of
A. risk aversion.
B. bounded rationality.
C. groupthink.
D. defensive avoidance.
E. anchoring and adjustment.
B.
bou
nde
d
ratio
nalit
y.
6
9
.
Nonrational models of decision making describe how managers should make
decisions rather than how they actually do
FAL
SE
7
0
.
One problem with the incremental model is that temporary steps may actually
impede a beneficial long-term solution
TRU
E
7
1
.
Opportunities should be identified in the alternative evaluation stage of the
decision-making process
FAL
SE
7
2
.
Participative management has a large effect on job performance and job
satisfaction
FAL
SE
7
3
.
Passing the buck or procrastinating about a decision are examples of which
type of reaction to a challenge?
A. Panic
B. Relaxed avoidance
C. Relaxed change
D. Decreased involvement
E. Defensive avoidance
E.
Defe
nsiv
e
avoi
dan
ce
7
4
.
People with a low tolerance for ambiguity and an orientation toward task and
technical concerns in making decisions have an analytical decision-making
style
FAL
SE
7
5
.
A person who is oriented toward people and social concerns and has a low
tolerance for ambiguity is ______ in her decision-making style.
A. analytical
B. relaxed
C. Conceptual
E.
Beh
avio
ral
D. directive
E. Behavioral
7
6
.
A person who is oriented toward task and technical concerns and
has a low tolerance for ambiguity is ______ in his decision-making
style.
A. analytical
B. Behavioral
C. Conceptual
D. directive
E. heuristic
D. directive
7
7
.
A person with a conceptual decision-making style is __________ in
her value orientation and __________ in her tolerance for ambiguity.
A. managerial; high
B. task/technical; low
C. people/social; high
D. people/social; low
E. managerial; low
C.
people/social;
high
7
8
.
A person with a directive decision style is efficient, logical, practical,
and systematic in her approach to solving problems
TRUE
7
9
.
A person with high tolerance for ambiguity has
A. a high need for structure or control.
B. a strong people orientation.
C. an analytical mind.
D. defensive avoidance tendencies.
E. comfort with uncertain situations.
E. comfort with
uncertain
situations.
8
0
.
Politics has provided evidence that appeals to emotion are more
effective than appeals to logic in decision making
TRUE
8
1
.
Portfolio analysis is an example of the incremental model of decision
making
FALSE
8
2
.
The process of identifying and choosing between alternative courses
of action is known as option evaluation
FALSE
8
3
.
The process of involving employees in setting goals, making decisions,
solving problems, and making changes is called
A. conjoint management.
B. escalation of commitment.
C. satisficing.
E.
particip
ative
manag
ement.
D. goal displacement.
E. participative management.
8
4
.
Putting questions to a vote is a good method to help a group reach
consensus
FALSE
8
5
.
The rational model of decision making assumes that managers will choose
the available alternative that best supports their existing beliefs
FALSE
8
6
.
The rational model of decision making is also called the ______ model.
A. Balanced
B. satisficing
C. Incremental
D. classical
E. intuitional
D.
classic
al
8
7
.
The rational model works well even with the incomplete information and
uncertainty about consequences that managers often face
FALSE
8
8
.
A recent study says that the world's information is doubling every seven
years
FALSE
8
9
.
Redbox uses the large amount of data that it collects at its video and game
rental kiosks to determine ways to improve customer retention and to
encourage multiple rentals at the same time. The chain is using
A. quantitative decision making.
B. data correlation.
D.
busine
ss
analyti
cs.
C. heuristics.
D. business analytics.
E. the Delphi technique.
9
0
.
Relaxed change is one type of effective response for a manager to take when
confronted with a challenge
FALSE
9
1
.
Research on the effects of participative management (PM) on employees'
performance and satisfaction indicates that
A. PM has no effect on either.
B. PM has a small positive effect on both.
C. PM has a large effect on satisfaction, but a small effect on performance.
D. PM has a large positive effect on both.
E. PM has a large effect on performance, but no significant effect on
satisfaction.
B. PM
has a
small
positive
effect
on
both.
9
2
.
Risk propensity is the willingness to gamble or to undertake risk for the
possibility of getting an increased payoff
TRUE
9
3
.
Robin is very worried about potentially having to lay off several of her staff.
She can't sleep well, her stomach is bothering her, and she snaps at her
employees. She doesn't know what to do but won't talk with anyone about it.
Robin is experiencing a ______ reaction to a challenge.
A. relaxed change
C.
panic
B. defensive avoidance
C. panic
D. deciding to decide
E. heuristic
9
4
.
Ryan is an efficient manager who is very good at meeting his deadlines and
quite decisive. Still, his employees find him to be too controlling at times
and unable to see the long-term consequences of his actions. Ryan is most
likely ______ in his decision-making style.
A. analytical
B. autocratic
C. Behavioral
D. Conceptual
E. directive
E.
directiv
e
9
5
.
Sandra did an Internet search for Jamaican hotels when she was setting up
her vacation, but found over 7 million results, of which she could only
handle looking at about two pages. Sandra is operating under conditions of
bounded rationality
TRUE
9
6
.
Satisficing occurs when a manager takes small, short-term steps to alleviate
a problem.
FALSE
9
7
Savannah is a warm and likeable manager who is extremely supportive of her
employees, but she sometimes doesn't say no when she needs to and is
C.
beha
.somewhat passive in enforcing her decisions. Her decision-making style is
most likely
A. analytical.
B. heuristic.
C. behavioral.
D. conceptual.
E. directive.
viora
l.
9
8
.
Scott has received training in resolving ethical dilemmas and currently
oversees the development of an ethical code for his workplace. Scott is a(n)
A. member of the principles board.
B. morality team member.
C. social responsibility chief.
D. ethics officer.
E. chief executive officer.
...
9
9
.
Smaller-sized groups make higher-quality decisions TRU
E
1
0
0
.
Spencer talked with Allie after their task force meeting, and they discovered
that neither of them had been in favor of dropping some items from next
year's budget, yet neither spoke up. Both wanted to be supportive of the
group instead. This is an example of
C.
grou
pthin
k
A. goal displacement.
B. satisficing.
C. groupthink.
D. heuristics.
E. self-selection.
1
0
1
.
The stores of data so vast that conventional database management systems
cannot handle them and which instead require very sophisticated analysis
software and supercomputing-level hardware are known as
A. big data.
B. heuristics.
C. information escalation.
D. incremental diagnostics.
E. boundless resources.
A.
big
data.
1
0
2
.
Studies show that even severe life events have a negative impact on one's
sense of well-being for no more than about three months
TRUE
1
0
3
.
The tendency for decision-makers to be influenced by the way a situation
or problem is presented to them is known as the ________ bias.
E.
framing
A. overconfidence.
B. escalation of commitment bias.
C. hindsight.
D. availability.
E. framing.
1
0
4
.
The tendency for group members to agree for the sake of unanimity and
thus avoid accurately assessing the decision situation is called satisficing
FALSE
1
0
5
.
The tendency of a group to settle on a decision that is "good enough" is
called
A. goal displacement.
B. satisficing.
C. groupthink.
D. heuristics.
E. pseudo-optimization.
B.
satisficin
g.
1
0
6
.
To be compliant with current federal legislation, all for-profit companies
are required to have an ethics officer
FALSE
1
0
7
.
To effectively use evidence-based management, the more evidence you
can gather, the better
FALSE
1
0
8
.
Understanding how to use failure is an important implementation principle
for evidence-based management
TRUE
1
0
9
.
_________ uses physically dispersed experts who fill out questionnaires
to generate ideas and the judgments are combined into an expert
consensus.
A. Brainstorming
B. PM
C. TQM
D. Brainwriting
E. The Delphi technique
E. The
Delphi
techniqu
e
1
1
0
.
What are a manager's
options if the action she
decided to take isn't
working? Why should a
manager resist the urge to
"stick it out" when feedback
is negative?
If the action is not working, a manager should consider
giving it more time, changing the decision or its
implementation slightly, trying another alternative, or
starting over. But a manager should recognize that
"sticking it out" may reflect a sunk-cost or escalation of
commitment bias.
1
1
1
.
When a manager decides to
take no action in the belief
that there will be no great
negative consequences, she
is engaged in
B. relaxed avoidance.
A. limited reaction.
B. relaxed avoidance.
C. relaxed change.
D. decreased involvement.
E. defensive avoidance.
1
1
2
.
When a manager makes a
decision based on the strong
beliefs she already has, she
is guilty of a prior-hypothesis
bias
TRUE
1
1
3
.
When a manager realizes that
complete inaction will have
negative consequences but
opts for the first available
alternative that involves low
risk, it is called
A. relaxed change.
B. defensive avoidance.
C. postponed action.
D. relaxed avoidance.
A. relaxed change.
E. delayed decision.
1
1
4
.
When evaluating alternatives
in decision making, you must
assess cost and quality and
also ask the question, "Is it
simple?
FALSE
1
1
5
.
When evaluating a solution in decision making, answering yes to which
of the following questions should cause you to reconsider choosing it?
A. Is there enough time?
B. Are the costs reasonable?
C. Is it ethical?
D. Is the technology available?
E. Do you consider it merely "good enough"?
E. Do you
consider it
merely
"good
enough"?
1
1
6
.
When managers add up all the money already spent on a project and
conclude it is too costly to simply abandon it, it is known as a(n)
________ bias.
A. anchoring and adjustment
B. confirmation
C. availability
D. representativeness
E. sunk cost
E. sunk cost
1
1
7
.
When managers use information that is readily available from memory
to make judgments, it is known as a confirmation bias
FALSE
1
1
8
.
When QVC experiments with which products it will sell on its television
shopping network and follows this up with analysis of why some sell
and others don't, it is using evidence-based management
TRUE
1
1
9
.
When then-president of Chrysler Bob Lutz ordered the development of
the Dodge Viper without supporting research but because it "just felt
right," he was using the incremental model of decision making
FALSE
1
2
0
.
Where time is of the essence, in most cases an individual should make
the decision rather than a group
TRUE
1
2
1
.
Which of the following characteristics of groups may lead to
groupthink?
A. Too little information available to the group
B. Errors in the information available to the group
C. Overconfidence
D. Disagreements among the members
E. Diversity in the group
\
C.
Overconfide
nce
1
2
2
.
Which of the following is a decision-making style based on the
dimensions of value orientation and tolerance for ambiguity?
D. Behavioral
A. professional
B. personal
C. technological
D. Behavioral
E. Mechanical
1
2
3
.
Which of the following is a disadvantage of group decision
making?
A. Lower commitment to the decision
B. Lower levels of confidence in judgments
C. Different perspectives
D. Greater discomfort with the final decision
E. Satisficing
E. Satisficing
1
2
4
.
Which of the following is a factor that helps participative
management work?
A. Top management is occasionally involved.
B. Employees trust managers.
B. Employees
trust managers.
C. PM is implemented without interference from TQM.
D. Employees work in interdependent jobs.
E. Employees need more training.
1
2
5
.
Which of the following is an advantage of group decision making?
A. Groupthink
B. Deeper commitment to the decision
C. Less thought required
D. A quicker decision
E. More flexibility in the final decision
B. Deeper
commitment to
the decision
1
2
6
.
Which of the following is an assumption upon which the
rational model of decision making rests?
A. Decision makers can logically evaluate the alternatives.
B. Consequences of any actions cannot be known.
C. Decision makers typically have emotional blind spots.
D. A decision maker will choose the option that is most
A. Decision makers can
logically evaluate the
alternatives.
ethical.
E. Decision makers are unable to process all of the
available information.
1
2
7
.
Which of the following is an implementation principle for
evidence-based management described by Pfeffer and
Sutton?
A. See yourself as outsiders do.
B. If all else fails, speed the spread of good practices.
C. Reserve evidence-based management for top
executives.
D. Treat your organization as a trophy.
E. Understand what happens when people succeed.
A. See yourself as
outsiders do
1
2
8
.
Which of the following is a practical guideline in
determining whether to use group decision making?
A. When it can encourage satisficing
B. When it can increase speed
C. When it can produce groupthink
D. When it can increase development
D. When it can increase
development
E. When a decision occurs infrequently
1
2
9
.
Which of the following is a step in the rational decision-
making model?
A. Seek consensus among leadership.
B. Identify the problem or opportunity.
C. Improve the chosen solution.
D. Test solutions on a small scale.
E. Implement a holding pattern.
B. Identify the problem or
opportunity.
1
3
0
.
Which of the following is characteristic of companies that
use analytics?
A. Use of predictive modeling
B. Having a single, focused application for its use
C. Information overload
D. Use of competitive intelligence
E. Making decisions intuitively
A. Use of predictive
modeling
1
3
1
.
Which of the following is NOT a hindrance to perfectly
rational decision making?
A. Conflicting goals
E. Lack of intuition
B. Imperfect information
C. Information overload
D. Limited cognitive capacity
E. Lack of intuition
1
3
2
.
Which of the following is NOT a reason why it is hard to
bring the best evidence to bear on your decisions?
A. Stories are more persuasive than evidence.
B. People are trying to mislead you.
C. The evidence leads to an unethical solution.
D. The evidence doesn't quite apply.
E. There's too much evidence.
C. The evidence leads
to an unethical solution.
1
3
3
.
Which of the following is NOT a recommended option when
you discover that an action is not working after a decision?
A. Give the chosen solution more time.
B. Abandon the solution in favor of the status quo.
C. Try another alternative.
B. Abandon the solution
in favor of the status
quo.
D. Go back to the beginning of the decision-making process.
E. Change the chosen solution slightly.
1
3
4
.
Which of the following is NOT a rule for brainstorming
suggested by IDEO?
A. Go for quality over quantity.
B. Defer judgment.
C. Stay focused on the topic.
D. Encourage wild ideas.
E. Be visual.
A. Go for quality over
quantity.
1
3
5
.
Which of the following is NOT one of the suggestions for
decision making recommended by management consultant
Odette Pollar?
A. Decide in a timely fashion.
B. Don't agonize over minor decisions.
C. Separate outcome from process.
D. Never stop gathering facts.
D. Never stop gathering
facts.
E. When overwhelmed, narrow your choices.
1
3
6
.
Which of the following is one of the nonrational models of
decision making?
A. Boundary
B. Classical
C. Goal displacement
D. Satisficing
E. Attitudinal
D. Satisficing
1
3
7
.
Which of the following is true about women investors?
A. They tend to trade more often than men.
B. They do less research before investing than men.
C. Their portfolios have a higher average gain than men's.
D. They are increasingly being drawn to careers in finance.
E. They tend to chase "hot tips."
C. Their portfolios have
a higher average gain
than men's.
1
3
8
.
Which of the following questions about a
proposed action is NOT a key question in
Bagley's ethical decision tree?
E. Should the effect of it be disclosed to
shareholders?
A. Is it legal?
B. Does it maximize shareholder value?
C. Is it ethical?
D. Would it be ethical not to do it?
E. Should the effect of it be disclosed to
shareholders?
1
3
9
.
Which of the following responses to a
challenge would be considered most like
satisficing?
A. Panic
B. Relaxed avoidance
C. Relaxed change
D. Decreased involvement
E. Defensive avoidance
C. Relaxed change
1
4
0
.
Which of the following statements about
biased decision making is true?
A. Hindsight helps you correctly assess
what you should have known beforehand.
C. When confronted with a choice, people
with strong prior beliefs tend to make their
decisions based on their beliefs even if
their beliefs are false.
B. When you are making a decision and
you have considerable experience in that
area, you are then most likely to be
overconfident.
C. When confronted with a choice, people
with strong prior beliefs tend to make their
decisions based on their beliefs even if
their beliefs are false.
D. Sometimes a single event can allow you
to determine the trend.
E. You could confidently make a decision
about something by asking 20 of your
friends and deciding based on their
preferences.
1
4
1
.
Which of the following statements about group decision making is
true?
A. Individuals are always better than groups in decision making.
B. Groups are always better than individuals in decision making.
C. Groups minimize satisficing.
D. Groups are faster at making decisions.
E. Managers should utilize groups for decision making on a selective
basis.
E. Managers
should utilize
groups for
decision
making on a
selective
basis.
1
4
Women investors make trades much less often than men, do a lot
more research, and have better returns on average
TRUE
2
.
1
4
3
.
Yichao, a manager of a downtown hair salon, has been
procrastinating about a problem. Over the past year, his company has
seen a high rate of customer defections, and even the loss of some of
its best stylists. Still, he hasn't even begun to investigate the issue.
This is an indicator of relaxed avoidance.
FALSE
1
4
4
.
You can increase your ability to influence others by being aware of
decision-making styles
TRUE
1
4
5
.
You have surveyed all of your close friends, and they all prefer ice
cream to frozen yogurt. Thus you should be confident that everyone
prefers ice cream; that is, this is a representative sample of adequate
size
FALSE
1
.
360-degree
assessment
A performance appraisal in which
employees are appraised not only by their
managerial superiors but also by peers,
subordinates, and sometimes clients
2
.
Accountabil
ity
Describes expectation that managers
must report and justify work results to the
managers above them
3
.
Adaptive
change
Reintroduction of a familiar practice, the
kind of change that has already been
experienced within the same org
4
.
Adaptive
perspective
Perpective of organizational culture that
assumes that the most effective cultures
help orgs anticipate and adapt to
environmental change
5
.
adhocracy
culture
Type of organizational culture taht has an
external focus and values flexibility
6
.
Adverse
impact
Effect an org has when it uses an
employment prcatice or procedure taht
results in unfavorable outcomes to a
protected class over another group of
people
7
.
Affirmative
action
The focus on achieving equality of
opportunity
8
.
Arbitration The process in wich a nuetral third party,
the arbitrator, listens to both parties ina
dispute and makes a decision taht the
parties have agreed will be binding on
them
9
.
Assessmen
t center
Company department where management
candidates participate in activities for a
few days while being assessed by
evaluators
1
0
.
Authority The right to perform or command; also,
the rights inherent in a managerial position
to make decisions, give orders, amd utilize
resources
1
1
.
Base pay Consists of the basic wage or salary paid
employees in exchange for doing their
jobs
12. BCG Matrix
A means of evaluating strategic business units
on the basis of (1) their business growth rates
and (2) their share of the market
13. Behavioral-
description
interview
Type of structured interview in which that
interviewer explores what applicants have
done in the past
14. Behaviorally
anchored
rating scales
(BARS)
Employee gradations in performance rated
according to scales of specific behaviors
15. Benchmarking A process by which a company compares its
performance with that of high-performing orgs
16. Benefits Additional nonmonetary forms of
compensation
17. Birth stage The nonbureaucratic state, the stage in which
the org is created
18. Boundaryless
organization
A fluid, highly adaptive org whose members,
linked by info technology, come together to
collaborate on common tasks; the
collabprators may include competitors,
suppliers, and customers
19. Business plan A document that outlines a proposed firm's
goals, the strategy for achieving them, and the
standards for measuring success
20. Centralized
authority
Organizational structure in which important
decisions are made by upper managers -
power is concentrated at the top
21. Change agent A person inside or outside the org who can be
a catalyst in helping deal with old problems in
new ways
22. Clan culture Type of organizational culture that has an
internal focus and values flexibility rather than
stability and control
2
3
.
Collective
bargaining
Negotiations between management and
employees regarding disputes over
compensation, benfits, working
conditions, and job security
2
4
.
Common
purpose
A goal that unifies employees or members
and gives everyone an understanding of
the org's reason for being
2
5
.
Compensati
on
Payment comprising three parts: wages or
salaries, incentives, and benefits
2
6
.
Competitive
intelligence
Gaining info about one's competitors'
activities so that one can anticipate their
moves and react appropriately
2
7
.
Computer-
assisted
instruction
Training in which computers are used to
provide additional help or to reduce
instructional time
2
8
.
Contingenc
y design
The process of fitting the org to its
environment
2
9
.
Contingenc
y planning
Also known as scenario planning and
scenario analysis; the creation of
alternative hypothetical but equally likely
future conditions
3
0
.
Coordinate
d effort
The coordination of individual efforts into a
group or org-wide effort
3
1
.
Cost-focus
strategy
One of Porter's 4 competitive strategies;
keeping the costs; and hence prices, of a
product or service below those of
competitors and to target a narrow market
3
2
.
Cost-
leadership
strategy
One of Porter's four competitive
strategies; keeping the costs, and hence
prices, of a product or service below those
of competitors and to target a wide market
3
3
.
Cost-of-
living
adjustment
(COLA)
clause
Clause in a union contract taht ties future
wage increases to increases in the cost of
living
3
4
.
Creativity The process of developing something new
or unique
3
5
.
Customer
divisions
Divisional structures in which activities are
grouped around common customers or
clients
3
6
.
Decentraliz
ed authority
Organizational structure in which
important decisions are made by middle-
level and supervisory-level managers -
power is delegated throughout the org
3
7
Defensive
strategy
Also called retrenchment strategy, one of
three grand strategies, this strategy
.involves reduction in the organizations
efforts
3
8
.
Delegation The process of assigning managerial
authority and responsibility to managers
and employees lower in the hierarchy
39. Development The education of professionals and
managers in the skills they will need to do
their jobs in the future
40. Differentiaition The tendency of the parts of an org to
disperse and fragment
41. Differentiation
strategy
One of Porter's four competitive strategies;
offering products or services that are of
unique and superior value compared with
those of competitors but to target a wide
market
42. Disparate
treatment
Results whe employees from protected
groups are intentionally treated differently
43. Diversification Strategy by which a company operates
several businesses in order to spread the
risk
44. Divisional
structure
The third type of organizational structure,
whereby people with diverse occupational
specialties are put together in forma groups
according to products and/or services,
customers and/or clients, or geographic
regions
45. Division of
labor
AKA work specialization; arrangement of
having discrete parts of a task done by
different people the work is divided into
particular tasks assigned to particular
workers
46. Employment
tests
Tests legally considered to consist of any
procedure used in the employment selection
process
47. Enacted values Values and norms actually exhibited in the
org
48. Environmental Careful monitoring of an organization's
scanning internal and external environments to detect
early signs of opportunities and threats taht
may influence the firm's plans
49. Equal
employment
opportunity
(EEO)
commission
U.S. panel whose job it is to enforce
antidescrimination and other employment
related laws
50. Espousal
values
Explicitly stated values and norms preferred
by an org
51. Execution "It is not simply tactics, it is a central part of
any company's strategy." Consists of
questioning, analysis, and follow-through in
order to mesh strategy with reality, align
people with goals, and achieve the results
promised.
52. External
recruiting
attracting job applicants from outside the org
5
3
.
Fair labor
standards
act
Legislation passed in 1938 that
established minimun living standards for
workers engaged in interstate commerce,
including provision of a federal minium
wage
5
4
.
Fit
perspective
Perspective of organizational culture taht
assumes that an org's culture must align,
or fit, with its business or strategic context
5
5
.
Focused-
differentiati
on strategy
One of Porte's four competitive strategies;
offering products or services that are of
unique and superior value compared to
those of competitors and to target a
narrow market
5
6
.
Forcast A vision or projection of the future
5
7
.
Forced
ranking
performanc
e review
systems
Performance review sysytems whereby all
employees within a business unit are
ranked against one another, and grades
are distributed along some sort of bell
curve, like students being graded in
college course
5
8
.
Formal
appraisals
Appraisals conducted at specific times
throughout the year and bases on
performance measures that have been
established in advance
5
9
.
Functional
structure
The second type of organizational
structure, whereby people with similar
occupational specialties are put together
in format groups
6
0
.
Geographic
divisions
Divisional structures in which activities are
grouped around defined regional locations
6
1
.
Givebacks Negotiation tactic in which the union
agrees to give up previous wage or benefit
gains in return for something else
6
2
.
Grand
strategy
Second step in the strategic-managemnt
process; it explains how the org's mission
is to be accomplished. Three grand
strategies: growth, stability, and defensive
6
3
.
Grievance Complaint by an employee that
management has violated the terms of the
labor-management agreement
6
4
.
Growth
strategy
One of the three grand strategies, this
strategy involves expansion - as in sales
revenues, market share, number of
employees, or number of customers or
(for nonprofits) clients served
6
5
.
Hero A person whose accomplishments
embody the values of the org
6
6
.
Hierarchy
culture
Type of organizational culture that has an
internal focus and values stability and
control over flexibility
67. Hierarchy of
authority
AKA chain of command; a control mechanism
for making sure the right people do the right
things at the right time
68. Hollow
structure
Often called network structure, structure in
which the org has a central core of key
functions and outsources other functions and
outsources other functions to vendors who can
do them cheaper or faster
69. Horizontal
design
Arrangement in which teams or workgroups,
either temporary or permanent, are used to
improve collaboration and work on shared
tasks by breaking down internal boundaries
70. Human
capital
Economic or productive potential of employee
knowledge, experience, and actions
71. Human
resource
(HR)
management
The activities managers perform to plan for,
attract, develop, and retain a workforce
72. Human
resource
inventory
A report listing an org's employees by name,
education, training, languages, and other
important info
73. Incremental
innovations
The creation of products, services, or
technologies, that modify existing ones
74. Informal
appraisals
Appraisals conducted on an unscheduled
basis and consisting of less rigorous
indications of employee performance that
those used in formal appraisals
75. Informal
recruiting
Hiring from the inside, or making people
already employed by the org aware of job
openings
76. Innovative
change
The introduction of a practice that is new to the
org
77. Integration The tendency of the parts of an org to draw
together to achieve a common purpose
78. Intervention Interference in an attempt to correct a problem
79. Job analysis The determination of the basic elements of a
job
80. Job
description
A summary of what the holder of the job does
and how and why she or she does it
81. Job posting Placing info about job vacancies and
qualifications on bulletin boards, in
newsletters, and on the org's intranet
82. Job
specification
Description of the minimum qualifications a
perosn must have to perform the job
successfully
83. Knowledge
worker
Someone whose occupation is principally
concerned with generating or interpreting info,
as opposed to manual labor
8
4
.
Labor
unions
Orgs of employees formed to protect and
advance their members' interests by
bargaining with management over job-
related issues
8
5
.
Line
managers
Managers who have the authority to make
decisions and usually have people reporting
to them
8
6
.
Market
culture
Type of organizational culture that has a
strong external focus and values stability
and control
8
7
.
Matrix
structure
Fourth type of organizational structure;
which combines functional and divisional
chains of command in a grid so that there
are two command structures - vertical and
horizontal
8
8
.
Maturity
stage
A stage when the org becomes very
bureaucratic, large, and mechanic.Also, the
third stage in the product life cycle; period in
which the product starts to fall out of favor,
and sales and profits fall off
8
9
.
Mechanist
ic
organizati
on
Org in which authority is centralized, tasks
and rules are clearly specified, and
employees are closely supervised
9
0
.
Mediation The process a neutral third party, the
mediator, listens to both sides of a dispute
and makes suggestions, and encourages
them to agree on a solution
9
1
.
Midlife
stage
A period of growth evolving into stability
when the org becomes bureaucratic
9
2
Modular Seventh type of organizational structure, in
.structure which a firm assembles product chunks, or
modules, provided by outside contractors
9
3
.
National
Relationa
Board
(NLRB)
Legislated in 1935, U.S. commission that
onforces procedures whereby employees
may vote to have a union and for collective
bargaining
9
4
.
Objective
appraisals
Also called results appraisals; performance
evaluations that are based on facts and taht
are often numerical
9
5
.
Organic
organizati
on
Org in which authority is decentralized,
there are fewer rules and procedures, and
networks of employees are encouraged to
cooperate and respond quickly to
unexpected tasks
9
6
.
Organizati
on
A group of people who work together to
achieve some specific purpose. A system of
consciously coordinated activities or forces
of two or more people
97. Organizational
culture
Sometimes called corporate culture; system
of shared beliefs and values that develops
within an org and guides the behavior of its
members
98. Organizational
design
Creating the optimal structures of
accountability and responsibility that an org
uses to execute its strategies
99. Organizational
development
(OD)
Set of techniques for implementing planned
change to make people and orgs more
effective
100. Organizational
life cycle
Four-stage cycle with a natural sequence of
stages: birth, youth, midlife, and maturity
101. Organizational
opportunites
Environmental factors that the org may
exploit for competitive advantage
102. Organizational
strenths
The skills and capabilities that give the org
special competencies and competitive
advantages in executing strategies in
pursuit of its mission
103. Organizational A formal system of task and reporting
structure relationships that coordinate and motivates
an org's members so taht they can work
together to achieve the org's goals
104. Organizational
threats
Environmental factors that hinder an org's
achieving a competitive advantage
105. Organizational
weaknesses
The drawbacks that hinder an org in
executing strategies in pursuit of its mission
106. Organization
chart
Box-and-lines illistration of the formal
relationships of positions of authority and
the org's official positions or work
specializations
107. Orientation Process of helping a newcomer fit smoothly
into the job and the org
108. Performance
appraisal
Assessment of an employee's performance
and the provision of feedback
109. Performance
management
The continuous cycle of improving job
performance though goal setting, feedback
and coaching, and rewards and positive
reinforcement
110. Porter's four
competitive
strategies
also known as the four generic strategies-
leadership, differentiation, cost-focus, and
focused-differentiation
111. Porter's model
for industry
analysis
business level strategies originate in 5
primary competitive forces in the firms
environment. (threat of new entrants,
bargaining power of suppliers, bargaining
power of buyers, threats of substitute
products or services, rivalry amounf
competitors)
1
1
2
.
Proactive
change
Making carefully thought-out changes in
anticipation of possible or expected
problems or opportunities; opposite of
reactive change
1
1
3
.
Process
intervention
A change in the way a product or service
is conceived, manufactured, or
disseminated
1
1
Product Divisional structures in which activities
4
.
divisions are grouped around similar products or
services
1
1
5
.
Product
innovation
A change in the appearance or
performance of a product/service or the
creation of a new one
1
1
6
.
Radical
innovations
New products, services, or technologies
that replace existing ones
1
1
7
.
Radically
innovative
change
Change involving a pratice that is new to
the industry
1
1
8
.
Reactive
change
Change made in response to problems
or opportunities as they arise
1
1
9
.
Realistic job
preview
A picture of both positive and negative
features of the job and org given to a job
candidate before he/she is hired
1
2
0
.
Recruiting The process of locating and attracting
qualified applicants for jobs open in the
org
1
2
1
.
Related
diversificati
on
An org under one ownership operates
separate businesses that are related to
one another
1
2
2
.
Relaxed
avoidance
The situation in which a manager
decides to take no action in the belief
that there will be no great negative
consequences
1
2
3
.
Relaxed
change
The situatio in which a manager realizes
that complete inaction will have negative
consequences but opts for the first
available alternative that involves low
risk
1
2
4
.
Reliability Degree to which a test measures the
same thing consistently
1
2
5
.
Representat
ive bias
The tendency to generalize form a small
sample or single event
1
2
6
.
Resistance
to change
An emotional/behavioral response to
real or imagined threats to an
established work routine
1
2
7
.
Responsibili
ty
The obligation one has to perform the
assigned tasks
1
2
8
.
Right-to-
work laws
Statutes that prohibit employees from
being required to join a union as a
condition of employment
1
2
9
.
Risk
propensity
Willingness to gamble or undertake risk
for the possibility of gaining an increased
payoff
130. Rites and
rituals
The activities and ceremonies, planned and
unplanned, that celebrate important occasions
and accomplishments in an org's life
131. Satisficng
model
One type of non rational decision-making
model; managers seek alternatives until they
find one that is satisfactory, not optimal
132. Scenario
analysis
Also known as scenario planning and
contingency planning; the creation of
alternative hypothetical but equally likely future
conditions
133. Seeds of
innovation
The starting point for org innovation
134. Selection
process
The screening of job applicants to hire the best
candidate
135. Sexual
harassment
Unwanted sexual attention that creates an
adverse environment
136. Simple
structure
The first type of organizational structure,
whereby an org has authority centralized in a
single person, as well as a flat hierarchy, few
rules, and low work specialization
137. Single-
product
strategy
Strategy by which a company makes and sells
only one product within its market
138. Situational
interview
A structured interview in which the interviewer
focuses on hypothetical situations
139. Social
capital
Economic or productive potential of string,
trusting, and cooperative relationships
140. Span of
control
The number of people reporting directly to a
given manager
141. Staff
personnel
Staff with advisory functions; they provide
advoce, recommendations, and research to
line managers
142. Story A narrative based on true events, which is
repeated - and sometiems embellished upon -
to emphasize a particular value
143. Strategic
human
resource
planning
The development of a systematic,
comprehensive strategy for (1) understanding
current employee needs and (2) predicting
future employee needs
144. Strenth
perspective
Perspective of organizational culture that
assumes that the strength of a corporate
culture is related to a firm's long-term finical
performance
145. Structred
interview
Interview in which the interviewer asks each
applicant the same questions and then
compares them to a standardized set of
answers
1
4
6
.
Subjective
appraisals
Performance evaluations based on a manager's perceptions of an
employee's traits or behaviors
1
4
7
.
Sunk-cost
fallacy/bia
s
Biased way of thinknig in which managers add up all the money already
spent on a project and conclude it is too costly to simply abandon it
1
4
8
.
Symbol An object, act, quality, or event that conveys meaning to others
1
4
9
.
Training Educating technical and operational employees in how to better do their
current jobs
1Two-tier Contracts in which new employees are paid less or recieve lesser benefits
5
0
.
wage
contracts
that veteran employees have
1
5
1
.
Union
security
clause
Part of a labor-management agreement taht states that employees who
receive union benefits must join the union, or at least pay dues to it
1
5
2
.
Unity of
command
Prinicple that stressed an employee should report to no more than one
manager in order to avoid conflicting priorities and demands
1
5
3
.
Unstructur
ed
interview
Interview in which the interviewer asks probing questions to find out what the
applicant is like
1
5
4
.
Validity Extent to which a test measures what it purports to measure and extent to
which it is free of bias
1
5
5
.
Virtual
organizati
on
An org whose members are geographically apart, usually working with e-mail,
collaborative computing, and other computer connections
1
5
6
.
Virtual
structure
A company outside a company that is created specifically to respond to an
exceptional market opportunity taht is often temporary
1
5
7
.
Workplace
discrimina
tion
Type of discrimination that occurs when people are hired or promoted - or
denied hiring or promotion - for reasons not relevant to the job
1
5
8
.
Youth
stage
The stage in which the org is in a pre-bureaucratic phase, one of growth and
expansion
1
.
The 2010 health care reform legislation requires
employers with more than 50 employees to
provide health insurance.
TR
UE
2
.
Advertising job openings on the Internet is an
effective way to do internal recruiting.
FA
LS
E
3
.
Anti-discrimination laws do not require
employers to extend preferential treatment
because of race, color, or religion.
TR
UE
4
.
Application forms, interviews, and educational
requirements are now legally considered
TR
employment tests. UE
5
.
Appraisals that are conducted on an
unscheduled basis and consist of less rigorous
indications of employee performance are known
as unofficial appraisals.
FA
LS
E
6
.
An assessment center consists of management
candidates participating in activities for a few
days while being assessed by evaluators.
TR
UE
7
.
Benefits are additional nonmonetary forms of
compensation designed to enrich the lives of all
employees in the organization, which are paid
all or in part by the organization.
TR
UE
8
.
Collective bargaining consists of negotiations
between top management and shareholders
about disputes over compensation and benefits
FA
LS
E
9
.
Collective capital is the economic or productive
potential of strong, trusting, and cooperative
relationships.
FA
LS
E
1
0
.
A company that evaluates its truckers based on
miles of freight hauled is using objective
appraisals.
TR
UE
1
1
.
The comparative interview involves asking each
applicant the same questions and comparing
their responses to a standardized set of
answers.
FA
LS
E
1
2
.
Computer-assisted instruction is an example of
on-the-job training.
FA
LS
E
1
3
.
Defining the organization's mission and
operations should be considered an integral
part of employee orientation.
TR
UE
1
4
.
An employee cannot be dismissed permanently
"for cause" for absenteeism.
FA
LS
E
1
5
.
External recruitment is the process of locating
and attracting qualified applications for jobs
open in the organization.
FA
LS
E
1
6
.
The Family & Medical Leave Act requires
employers to provide 12 weeks of paid leave for
medical and family reasons like childbirth or
adoption.
FA
LS
E
17. The first step in the training process is setting
objectives for what the training should achieve.
FALS
E
18. The forced ranking performance review system
may have negative effects on morale, productivity
and loyalty.
TRUE
19. For HR professionals, employee training is
synonymous with development.
FALS
E
20. Google's biggest competitive advantage lies in its
human resources—its people
TRUE
21. Having personal differences with your boss may
result in your transfer.
TRUE
22. Human capital is the economic or productive
potential of employee knowledge and actions.
TRUE
23. A human resource inventory organizes information
for assessing which of your current employees are
promotable and what kind of training your
organization might have to do.
TRUE
24. If managers regularly communicate with
employees about the incentive pay plan, the
organization's plan is more likely to meet its goals.
TRUE
25. In a behavioral-description interview, the
interviewer explores what applicants have actually
done in the past.
TRUE
26. In general, the most effective sources of good
external candidates are employee referrals.
TRUE
27. Interviews with people who currently hold a job is
part of a job analysis for that position.
TRUE
28. In the situational interview a typical question might
be "What is the best idea you ever sold to
someone?"
FALS
E
29. In the U.S., paid time off constitutes the largest part
of overall employee benefit costs.
FALS
E
30. A job description describes the minimum
qualifications a person must have to perform the
job successfully.
FALS
E
31. Job posting is the primary method of recruiting
internally.
TRUE
32. A job specification gives a candidate a picture of
both positive and negative features of the job and
the organization before he or she is hired.
FALS
E
33. Lorena is a mechanical engineer consulting on a
large construction project. When she was visiting
the job site, several construction workers whistled
at her as she climbed a ladder. The men's actions
created a hostile work environment.
TRUE
34. A manager employing a BARS is using a trait
appraisal.
FALS
E
3
5
.
Managers should use personality tests in
selecting new employees, because they are the
most direct measure of how well the employee
will perform in the job.
FA
LS
E
3
6
.
The most commonly used employee-selection
technique is interviewing
TR
UE
3
7
.
Objective appraisals are harder to challenge
legally than subjective appraisals.
TR
UE
3
8
.
One of the factors that determines base pay is
what competitors are paying.
TR
UE
3
9
.
One of the keys to a successful incentive-pay
plan is its fairness.
FA
LS
E
4
0
.
An orientation helps a newcomer fit smoothly
into the job and the organization.
TR
UE
4
1
.
Performance management is a method used to
improve profitability through a rapid
downsizing.
FA
LS
E
4
2
.
Personnel management consists of the activities
managers perform to plan for, attract, develop,
and retain an effective workforce.
FA
LS
E
4
3
.
The process of writing job analyses,
descriptions, and specifications can help you to
hire people who are overqualified.
FA
LS
E
4
4
.
Products from child labor were banned under
the Fair Labor Standards Act of 1938.
TR
UE
4
5
.
Programs that attempt to make up for past
discrimination in employment are known as
affirmative action programs.
TR
UE
4
6
.
The purpose of the strategic human resource
management process is to get optimal work
performance to help realize the company's
mission and goals
TR
UE
4
7
.
Recruiting and selecting people is the first step
in the strategic human resource process.
FA
LS
E
4
8
.
References are an effective way to obtain
reliable information about a prospective job
candidate.
FA
LS
E
4
9
.
Reports from the U.S. Bureau of Labor Statistics
are a good source of information to assess
internal candidates for promotion
FA
LS
E
5
0
.
The screening of job applicants in order to hire
the best candidate is known as the preference
process.
FA
LS
E
5
1
.
Stock options are an example of a benefit as a
form of compensation
FA
LS
E
5
2
.
A term for sexual discrimination is quid pro quo. FA
LS
E
5
3
.
A test is reliable if it measures what it purports
to measure and is free of bias
FA
LS
E
5
4
There are fewer risks associated with external FA
.recruiting than with internal since the pool of
potential candidates is much larger
LS
E
55. The three parts of compensation are wages,
incentives, and benefits.
TRUE
56. Title VII of the Civil Rights Act of 1964 applies to all
for-profit companies
FALS
E
57. Trait appraisals are of questionable validity
because an evaluator's personal biases can affect
ratings.
TRUE
58. The type of appraisal in which employees are
evaluated not only by their managerial superiors
but also by peers and subordinates is called the
180-degree assessment.
FALS
E
59. Understanding current employee needs and
predicting future ones are the two parts of strategic
human resources recruiting
TRUE
60. Unstructured interviews are more accurate than
structured interviews in assessing an applicant's
job-related personality traits
TRUE
61. The Wagner Act allows the President of the United
States to prevent or end a strike that threatens
national security.
FALS
E
62. When doing a performance appraisal the manager
will provide the subordinate with feedback.
TRUE
63. When it comes to performance appraisal feedback,
the longer the appraisal document, the better.
FALS
E
64. When starting a new job, it is best to avoid giving
or getting feedback during the first 60 days so that
everyone has an opportunity to get an accurate
impression.
FALS
E
