management ch. 1

8/20/2019 Management Ch. 1

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Chapter 1 – Introduction to Management and Organizations

True/False Questions

The four contemporary functions of management are planning, organizing, leading, and controllingTrue !easy"

#ffecti$eness refers to the relationship %et&een inputs and outputsFalse !moderate"

#fficiency is often referred to as 'doing things right 'True !moderate"(hen managers meet organizational goals, they are efficient and effecti$e

False !difficult")ccording to Mintz%erg*s management roles, the informational role in$ol$es recei$ing, collecting, and disseminainformation

True !moderate"Technical s+ills %ecome less important as a manager mo$es into higher le$els of management

True !moderate"The systems perspecti$e underscores and emphasizes the fact that organizations are different, face diffecircumstances, and thus may re uire different &ays of managing

False !moderate"Multiple Choice ------------- are organizational mem%ers &ho integrate and coordinate the &or+ of others

a Managers !easy" % Team leadersc .u%ordinatesd Operati$ese )gents

Typically, in organizations it is the ------------- &ho are responsi%le for ma+ing organizational decisions andsetting policies and strategies that affect all aspects of the organization

a team leaders % middle managersc first line managersd top managers !easy"

e su%ordinates ------------- distinguishes a managerial position from a nonmanagerial onea Manipulating others % Concern for the la&c Increasing efficiencyd Coordinating and integrating others0 &or+ !moderate"e efining mar+et share

(hich of the follo&ing is 2OT an e3ample of a decisional role according to Mintz%erg4a spo+esperson !moderate" % entrepreneur c distur%ance handler d resource allocator e negotiator

(hich of the follo&ing s+ills are more important at lo&er le$els of management since these managers are dealidirectly &ith employees doing the organization*s &or+4a human s+ills % technical s+ills !easy"c conceptual s+illsd empirical s+ills

5nderstanding %uilding codes &ould %e considered a ------------- s+ill for a %uilding contractora human % technical !easy"c conceptuald empirical

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e functional(hich of the follo&ing phrases is %est associated &ith managerial conceptual s+ills4

a decision ma+ing !easy" % communicating &ith customersc moti$ating su%ordinatesd product +no&ledgee technical s+ills

)ccording to the te3t, ------------- are not influenced %y and do not interact &ith their en$ironmenta open systems

% closed systems !easy"c fle3time systemsd re$erse systemse for&ard systems

The ------------- $ie& of a manager0s 6o% implies that decisions and actions ta+en in one organizational area &iimpact other areas

a systems !moderate" % contingencyc conceptuald functionale en$ironmental

(hich of the follo&ing %est descri%es the concept that management is needed in all types and sizes of organizatiat all organizational le$els and in all organizational &or+ areas, and in all organizations, no matter &hat couthey*re located in4

a the partiality of management % the segmentation of managementc the uni$ersality of management !moderate"d the cultures of management

.cenarios and QuestionsThe 7usy ay !.cenario"

on #s+e&, plant manager at Control .ystems, Inc , sighed as he sipped his first cup of coffee at 8 a m and reaagenda for the day 9e is gi$ing t&o company tours in the morning: the first to a ne&spaper reporter &ho is &ritstory on the ne& plant e3pansion and has se$eral uestions, and the second to a group of Control .ystems, Imanagers from the east coast 9e then has a meeting &ith unit manager, ;hil


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a monitor % disseminator c resource allocator !moderate"d distur%ance handler e figurehead

#ssay QuestionsIn a short essay, discuss the difference %et&een efficiency and effecti$eness and include a specific e3ample to sueach concept

)ns&er a #fficiency refers to getting the most output from the least amount of inputs 7ecause managers deal scarce inputs including resources such as people, money, and e uipment they are concerned &ith thefficient use of resources For instance, at the 7eiersdorf Inc factory in Cincinnati, &here employees %ody %races and supports, canes, &al+ers, crutches, and other medical assistance products, effmanufacturing techni ues &ere implemented %y doing things such as cutting in$entory le$els, decreathe amount of time to manufacture products, and lo&ering product re6ect rates From this perspeefficiency is often referred to as Ddoing things rightE that is, not &asting resources

% #ffecti$eness is often descri%ed as Ddoing the right thingsE that is, those &or+ acti$ities that &ill horganization reach its goals For instance, at the 7iersdorf factory, goals included open communica %et&een managers and employees, and cutting costs Through $arious &or+ programs, these goals pursued and achie$ed (hereas efficiency is concerned &ith the means of getting things doeffecti$eness is concerned &ith the ends, or attainment of organizational goals

!moderate"

In a short essay, list and e3plain the four %asic functions of management

)ns&er a ;lanning – in$ol$es the process of defining goals, esta%lishing strategies for achie$ing those goals

de$eloping plans to integrate and coordinate acti$ities % Organizing – in$ol$es the process of determining &hat tas+s are to %e done, &ho is to do them, h

tas+s are to %e grouped, &ho reports to &hom, and &here decisions are to %e madec eading – &hen managers moti$ate su%ordinates, influence indi$iduals or teams as they &or+, sele

most effecti$e communication channel, or deal in any &ay &ith employee %eha$ior issues, they are leadd Controlling – to ensure that &or+ is going as it should, managers must monitor and e$aluate perform

The process of monitoring, comparing, and correcting is &hat is meant %y the controlling function!moderate"

In a short essay, list and discuss the three essential s+ills according to Gatz that managers need to perform the duand acti$ities associated &ith %eing a manager

)ns&er a Technical s+ills – include +no&ledge of an proficiency in a certain specialized field, such as enginee

computers, accounting, or manufacturing These s+ills are more important at lo&er le$els of managesince these managers are dealing directly &ith employees doing the organization*s &or+

% 9uman s+ills – in$ol$e the a%ility to &or+ &ell &ith other people %oth indi$idually and in a Managers &ith good human s+ills are a%le to get the %est out of their people They +no& hcommunicate, moti$ate, lead, and inspire enthusiasm and trust These s+ills are e ually important le$els of managementc Conceptual s+ills – these are the s+ill that managers must ha$e to thin+ and to conceptualize a%out a%and comple3 situations 5sing these s+ills, managers must %e a%le to see the organization as a &understand the relationships among $arious su%units, and $isualize ho& the organization fits into its %ren$ironment These s+ills are most important at the top management le$els

!moderate"Chapter B – Management Hesterday and Today

True/False

)ccording to )dam .mith, di$ision of la%or &as an important concept


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True !easy"In the Industrial Je$olution, machine po&er %egan su%stituting for human po&er

True !easy" D;rinciples of .cientific ManagementE &as &ritten %y Frederic+ Taylor

True !moderate"Fran+ Kil%reth*s %est +no&n contri%ution to scientific management concerned selecting the %est &or+er

False !moderate"Frederic+ Taylor is most associated &ith the principles of scientific management

True !easy"

One could say that Fayol &as interested in studying macro management issues, &hereas Taylor &as interestestudying micro management issuesTrue !moderate"

7ureaucracy, as descri%ed %y (e%er, emphasizes rationality and interpersonal relationshipsFalse !moderate"

ecisions on determining a company*s optimum in$entory le$els ha$e %een significantly influenced %y econorder uantity modeling

True !moderate"7arnard, Follet, Muster%erg, and O&en are all theorists are associated &ith the early organizational %ehapproach

True !moderate"Multiple Choice)dam .mith0s, 'The (ealth of 2ations,' put forth that the primary economic ad$antage %y societies &ould %e gainefrom &hich of the follo&ing concepts4

a management planning and control % on the 6o% trainingc union representationd fair employment legislatione di$ision of la%or !difficult"

(hich of the follo&ing is not one of the four management approaches that gre& out of the first half of this century4a scientific management % general administrati$ec organizational %eha$ior

d systems approach !easy"e uantitati$e

)ccording to the te3t, pro%a%ly the %est +no&n e3ample of Taylor*s scientific management &as the ------------e3perimenta horse shoe % pig iron !moderate"c %lue collar d fish tan+

(hich of the follo&ing is 2OT one of Taylor*s four principles of management4a e$elop a science for each element of an indi$idual*s &or+, &hich &ill replace the old rule of

method % .cientifically select and then train, teach, and de$elop the &or+erc 9eartily cooperate &ith the &or+ers so as to ensure that all &or+ is done in accordance &ith the princ

de$elopedd ;ro$ide managers &ill less &or+ than other employees so the managers can plan accordingly !difficu

Keneral administrati$e theory focuses ona the entire organization !easy" % managers and administratorsc the measurement of organizational design relationshipsd primarily the accounting functione administrati$e issues affecting non managerial employees

A


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The fourteen principles of management are associated &ith &hom4a (e%er % ruc+er c Taylor d Kil%rethe Fayol !moderate"

(hich of the follo&ing approaches to management has also %een la%eled operations research or managem

science4a The ualitati$e approach % The uantitati$e approach !easy"c The e3perimental approachd The theoretical approach

(hich of the follo&ing &ould not %e associated &ith the uantitati$e approach to management4a information models % critical path schedulingc systematic moti$ation of indi$iduals !moderate"d linear programminge statistics

(ithout uestion, the most important contri%ution to the de$eloping field of organizational %eha$ior came out o ---------------a Taylor .tudies % ;orter .tudiesc ;ar+er .tudiesd 9a&thorne .tudies !moderate"

(hat scientist is most closely associated &ith the 9a&thorne .tudies4a )dams % Mayo !easy"c a&ler d 7arnard

e FollettOne outcome of the 9a&thorne studies could %e descri%ed %y &hich of the follo&ing statements4

a .ocial norms are the +ey determinants of indi$idual &or+ %eha$ior !moderate" % Money is more important than the group on indi$idual producti$ityc 7eha$ior and employee sentiments are in$ersely relatedd .ecurity is relati$ely unimportante (hile groups are an important determinant of &or+er producti$ity, the indi$idual him/herself is m

important

.cenarios and Questions

9I.TOJIC) 7)CGKJO52 OF M)2)K#M#2T

) oo+ 7ac+ !.cenario"

Cindy .chultz, tired from &or+ing &ith customers all day, decided to ta+e a fifteen minute nap to help clear her %efore the AL18 managers0 meeting 9er company had recently %egun a re engineering process as &ell changes re uiring copious management input )s she leaned %ac+ in her chair, she &ondered if management schad al&ays %een this &ay and ho& it all %egan )s she napped, she dreamed that, along &ith 'Mr ;ee%odi' guide, she &as tra$eling in the 'Management (ay 7ac+ Machine' that too+ her %ac+ through management history

1@? One of the earliest sites Cindy $isited &as )dam .mith0s home, author ofThe Wealth of Nations , &hichsuggested that organizations and society &ould gain from

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a time management % di$ision of la%or !moderate"c group &or+d uality managemente time and motion studies

1@ Cindy $isited a %oo+store &here there &as a %oo+ signing occurring .he loo+ed do&n and sa& that tthe %oo+ &as Principles of Scientific Management and concluded that the author must %ea )dam .mith

% Fran+ Kil%rethc 9enry Kanttd Frederic+ Taylor !easy"e 9enri Fayol

1@N Cindy admired the &or+s of Taylor and Kil%reth, t&o ad$ocates of a scientific management !moderate" % organizational %eha$iorc human resource managementd moti$atione leadership

1@> Cindy spent some time $isiting &ith ----------, a researcher she pre$iously +ne& little a%out %ut &hocontri%uted to management science %y %eing among the first to use motion picture films to study han %ody motions and %y de$ising a classification scheme +no&n as a 'ther%lig 'a 9enry Kantt % Ma3 (e%er c Chester 7arnardd Fran+ Kil%reth !moderate"e Mary ;ar+er Follet

#ssay Questions

.CI#2TIFIC M)2)K#M#2T

In a short essay, discuss Frederic+ Taylor*s &or+ in scientific management 2e3t, list Taylor*s four principles ofmanagement

)ns&er

Frederic+ Taylor did most of his &or+ at the Mid$ale and 7ethlehem .teel Companies in ;ennsyl$ania )s amechanical engineer &ith a Qua+er and ;uritan %ac+ground, he &as continually appalled %y &or+ers*inefficiencies #mployees used $astly different techni ues to do the same 6o% They &ere inclined to DteasyE on the 6o%, and Taylor %elie$ed that &or+er output &as only a%out one third of &hat &as possi%l

irtually no &or+ standards e3isted (or+ers &ere placed in 6o%s &ith little or no concern for matching tha%ilities and aptitudes &ith the tas+s they &ere re uired to do Managers and &or+ers &ere in continualconflict Taylor set out to correct the situation %y applying the scientific method to shop floor 6o%s 9e smore than t&o decades passionately pursuing the Done %est &ayE for each 6o% to %e done

Taylor*s Four ;rinciples of Management

a e$elop a science for each element of an indi$idual*s &or+, &hich &ill replace the old rule ofmethod

% .cientifically select and then train, teach, and de$elop the &or+erc 9eartily cooperate &ith the &or+ers so as to ensure that al &or+ is done in accordance &ith the princ

of the science that has %een de$eloped

?


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d i$ide &or+ and responsi%ility almost e ually %et&een management and &or+ers Management taall &or+ for &hich it is %etter fitted than the &or+ers

!difficult"

1BB In a short essay, discuss the &or+ in scientific management %y Fran+ and illian Kil%reth

)ns&er

Fran+ Kil%reth is pro%a%ly %est +no&n for his e3periments in %ric+laying 7y carefully analyzing the %ric+layer*s 6o%, he reduced the num%er of motions in laying e3terior %ric+ from 1N to a%out 8, and oninterior %ric+ the motions &ere reduced from 1N to B 5sing the Kil%reth*s techni ues, the %ric+layer cmore producti$e and less fatigued at the end of the day The Kil%reths &ere among the first researchers tomotion pictures to study hand and %ody motions and the amount of time spent doing each motion (astedmotions missed %y the na+ed eye could %e identified and eliminated The Kil%reths also de$ised a classischeme to la%el 1 %asic hand motions, &hich they called ther%ligs This scheme allo&ed the Kil%reths precise &ay of analyzing a &or+er*s e3act hand mo$ements

!moderate"

K#2#J) ) MI2I.TJ)TI # T9#OJI.T.

1B In a short essay, discuss the &or+ of 9enri Fayol as it relates to the general administrati$e approach tomanagement 2e3t list and discuss se$en of Fayol*s fourteen principles of management

)ns&er

Fayol descri%ed the practice of management as something distinct from accounting, finance, production,distri%ution, and other typical %usiness functions 9e argued that management &as an acti$ity common tohuman endea$ors in %usiness, go$ernment, and e$en in the home 9e then proceeded to state 1A principlemanagement fundamental rules of management that could %e taught in schools and applied in allorganizational situations

Fayol*s Fourteen ;rinciples of Management

a i$ision of &or+ – specialization increases output %y ma+ing employees more efficient % )uthority – managers must %e a%le to gi$e orders )uthority gi$es them this right )long &ith aut

ho&e$er, goes responsi%ilityc iscipline – employees must o%ey and respect the rules that go$ern the organizationd 5nity of command – e$ery employee should recei$e orders from only one superiore 5nity of direction – the organization should ha$e a single plan of action to guide managers and &or+erf .u%ordination of indi$idual interests to the general interest – the interests of any one employee or grou

employees should not ta+e precedence o$er the interests of the organization as a &holeg Jemuneration – &or+ers must %e paid a fair &age for their ser$icesh Centralization – this term refers to the degree to &hich su%ordinates are in$ol$ed in decision ma+ingi .calar chain – the line of authority from top management to the lo&est ran+s in the scalar chain 6 Order – people and materials should %e in the right place at the right time+ # uity – managers should %e +ind and fair to their su%ordinatesl .ta%ility of tenure of personnel – management should pro$ide orderly personal planning and ensure

replacements are a$aila%le to fill $acanciesm Initiati$e – employees &ho are allo&ed to originate and carry out plans &ill e3ert high le$els of effortn #sprit de corps – promoting team spirit &ill %uild harmony and unity &ithin the organization!difficult"


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1BA In a short essay, discuss Ma3 (e%er*s contri%ution to the general administrati$e approach to management

)ns&er

Ma3 (e%er &as a Kerman sociologist &ho studied organizational acti$ity (riting in the early 1>@@s, hede$eloped a theory of authority structures and relations (e%er descri%es an ideal type of organization he ca %ureaucracy a form or organization characterized %y di$ision of la%or, a clearly defined hierarchy, detai

rules and regulations, and impersonal relationships (e%er recognized that this Dideal %ureaucracyE didn*in reality Instead he intended it as a %asis for theorizing a%out &or+ and ho& &or+ could %e done in largroups 9is theory %ecame the model structural design for many or today*s large organizations

!easy"

TO()J 52 #J.T)2 I2K OJK)2IP)TIO2) 7#9) IOJ

1B8 In a short essay, descri%e the 9a&thorne .tudies 2e3t, discuss the role of #lton Mayo in these studies andsome of the findings of his research

)ns&er

(ithout uestion, the most important contri%ution to the de$eloping O7 field came out of the 9a&thorne.tudies, a series of studies conducted at the (estern #lectric Company (or+s in Cicero, Illinois These studies&ere initially designed %y (estern #lectric industrial engineers as a scientific management e3periment The&anted to e3amine the effect of $arious illumination le$els on &or+er producti$ity 7ased on their research&as concluded that illumination intensity &as not directly related to group producti$ity In 1>B , the (este#lectric engineers as+ed 9ar$ard professor #lton Mayo and his associates to 6oin the study as consultantsThrough additional research, #lton Mayo concluded that %eha$ior affected indi$idual %eha$ior, that groupstandards esta%lish indi$idual &or+er output, and that money is less a factor in determining output than aregroup standards, group sentiments, and security These conclusions led to a ne& emphasis on the human %eha$ior factor in the functioning of organizations and the attainment of their goals

!difficult"

C5JJ#2T TJ#2 . )2 I..5#.

1B? In a short essay, define entrepreneurship and discuss the three import themes that stic+ out in this definitionentrepreneurship

)ns&er

#ntrepreneurship is the process &here%y an indi$idual or a group of indi$iduals uses organized efforts and

means to pursue opportunities to create $alue and gro& %y fulfilling &ants and needs through inno$ation anuni ueness, no matter &hat resources are currently controlled It in$ol$es the disco$ery of opportunities anthe resources to e3ploit them Three important themes stic+ out in this definition of entrepreneurship Firthe pursuit of opportunities #ntrepreneurship is a%out pursuing en$ironmental trends and changes that no else has seen or paid attention to The second important theme in entrepreneurship is inno$ation#ntrepreneurship in$ol$es changing, re$olutionizing, transforming, and introducing ne& approaches that isne& products or ser$ices of ne& &ays of doing %usiness The final important theme in entrepreneurship igro&th #ntrepreneurs pursue gro&th They are not content to stay small or to stay the same in size#ntrepreneurs &ant their %usinesses to gro& and &or+ $ery hard to pursue gro&th as they continually loo+trends and continue to inno$ate ne& products and ne& approaches

!moderate"N


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1B In a short essay, define e %usiness and e commerce 2e3t discuss the three categories of e %usinessin$ol$ement

)ns&er

# %usiness !electronic %usiness" is a comprehensi$e term descri%ing the &ay an organization does its &ousing electronic Internet %ased" lin+ages &ith its +ey constituencies !employees, managers, customers,

suppliers, and partners" in order to efficiently and effecti$ely achie$e its goals It*s more than e commercealthough e %usiness can include e commerce # commerce !electronic commerce" is any form of %usine3change or transaction in &hich the parties interact electronically The first category of e %usinessin$ol$ement an e %usiness enhanced organization, a traditional organization that sets up e %usiness capa%usually e commerce, &hile maintaining its traditional structure Many Fortune 8@@ type organizations ae$ol$ing into e %usinesses using this approach They use the Internet to enhance !not to replace" theirtraditional &ays of doing %usiness )nother category of e %usiness in$ol$ement is an e %usiness ena%leorganization In this type of e %usiness, an organization uses the Internet to perform its traditional %usinefunctions %etter, %ut not to sell anything In other &ords, the Internet ena%les organizational mem%ers totheir &or+ more efficiently and effecti$ely There are numerous organizations using electronic lin+ages tocommunicate &ith employees, customers, or suppliers and to support them &ith information The last cateof e %usiness in$ol$ement is &hen an organization %ecomes a total e %usiness Their &hole e3istence i possi%le %y and re$ol$es around the Internet

!moderate"

1BN In a short essay, discuss the need for inno$ation and fle3i%ility as it relates to the sur$i$al of today*sorganizations

)ns&er

Inno$ation has %een called the most precious capa%ility that any organization in today*s economy must haand nurture (ithout a constant flo& of ne& ideas, an organization is doomed to o%solescence of e$en &orfailure In a sur$ey a%out &hat ma+es an organization $alua%le, inno$ation sho&ed up at the top of the li

There is a%solutely no dou%t that inno$ation is crucial )nother demand facing today*s organizations andmanagers is the need for fle3i%ility In a conte3t &here customers* needs may change o$ernight, &here necompetitors come and go at %reathta+ing speed, and &here employees and their s+ills are shifted as neededfrom pro6ect to pro6ect, one can see ho& fle3i%ility might %e $alua%le

!easy"

1B> In a short essay, discuss the concept of total uality management and the si3 characteristics that descri%e timportant concept

)ns&er

) uality re$olution s&ept through %oth the %usiness and pu%lic sectors during the 1>N@s and 1>>@s generic term used to descri%e this re$olution &as total uality management, or TQM for short It &as insp %y a small group of uality e3perts, the most famous %eing ( #d&ards eming and


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a Intense Focus on the customer – the customer includes not only outsiders &ho %uy the organiza products or ser$ices %ut also internal customers !such as shipping or accounts paya%le personnel"interact &ith and ser$e others in the organization

% Concern for continual impro$ement – TQM is a commitment to ne$er %eing satisfied D ery goodgood enough Quality can al&ays %e impro$ed

c ;rocess focused – TQM focuses on &or+ processes as the uality of goods and ser$ices is continimpro$ed

d Impro$ement in the uality of e$erything the organization does – TQM uses a $ery %road definitiuality It relates not only to the final product %ut also to ho& the organization handles deli$eries

rapidly it responds to complaints, and ho& politely the phones are ans&erede )ccurate measurement – TQM uses statistical techni ues to measure e$ery critical $aria%le inorganization*s operations These are compared against standards or %enchmar+s to identify pro%lemthem to their roots, and eliminate their causes

f #mpo&erment of employees – TQM in$ol$es the people on the line in the impro$ement process Tare &idely used in TQM programs as empo&erment $ehicles for finding and sol$ing pro%lems

!difficult"

1 @ In a short essay, descri%e the learning organization and discuss the concept of +no&ledge management

)ns&er

Today*s managers confront an en$ironment &here change ta+es place at an unprecedented rate Constantinno$ations in information and computer technologies com%ined &ith the glo%alization of mar+ets ha$e cra chaotic &orld )s a result, many of the past management guidelines and principles no longer apply.uccessful organizations of the t&enty first century must %e a%le to learn and respond uic+ly, and &ill % %y managers &ho can effecti$ely challenge con$entional &isdom, manage the organization*s +no&ledge %and ma+e needed changes In other &ords, these organizations &ill need to %e learning organizations )learning organization is one that has de$eloped the capacity to continuously learn, adapt, and change ;art omanager*s responsi%ility in fostering an en$ironment conducing to learning is to create learning capa%ilitiethroughout the organization from lo&est le$el to highest le$el and in all areas Gno&ledge managementin$ol$es culti$ating a learning culture &here organizational mem%ers systematically gather +no&ledge andshare it &ith others in the organization so as to achie$e %etter performance

!moderate"

Chapter – Organizational Culture

In the sym%olic $ie& of management, managers are seen as directly responsi%le for an organization0s succfailure

False !easy"

The current dominant assumption in management theory suggests managers are omnipotentTrue !moderate"

)n organizational culture refers to a system of shared meaningTrue !moderate"

Organizational culture is a perception, not realityTrue !moderate"

.trong cultures ha$e more influence on employees than &ea+ onesTrue !moderate"

)n organization0s founder has little influence on its cultureFalse !moderate"

The lin+ %et&een $alues and managerial %eha$ior is fairly straightfor&ard1@


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True !moderate"

Multiple Choice Questions

(hat $ie& suggests that managers are directly responsi%le for an organization0s success or failure4a .ym%olic $ie& of management % )utocratic $ie& of managementc Omnipotent $ie& of management !moderate"

d inear $ie& of managemente Quality $ie& of management

Organizational culture is similar to an indi$idual0s -------------a s+ills % personality !easy"c moti$ationd a%ilitye +no&ledge

(hich of the follo&ing phrases is associated &ith the definition of organizational culture4a Indi$idual response % .hared meaning !easy"c i$ersity of thoughtd #3plicit directionse Internal gro&th

The organizational ------------- is !are" a system of shared meaning held %y mem%ers that distinguish!es" theorganization from other organizations

a culture !easy" % $aluesc ritualsd structuree hierarchy

(hich of the follo&ing is not implied %y your te3t0s definition of culture4a Culture is a perception % Indi$iduals tend to descri%e an organization0s culture in dissimilar terms !difficult"c There is a shared aspect of cultured Organizational culture is a descripti$e terme Jesearch suggests se$en dimensions to an organization0s culture

Most organizations ha$e ------------ culturesa $ery &ea+ % &ea+ to moderatec moderated moderate to strong !moderate"e strong to $ery strong

(hat is the original source of an organization0s culture4a The organization0s industry % The organization0s sizec The organization0s aged The organization0s geographic locatione The organization0s founder !moderate"

------------- are repetiti$e se uences of acti$ities that e3press and reinforce +ey $alues of the organizationa Jituals !easy" % .tories

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c .ym%olsd anguagee 9a%its

Organizational ------------- typically contain a narrati$e of significant e$ents or peoplea stories !moderate" % ritualsc organizational chartd material sym%ols

e language

The lin+ %et&een organizational $alues and managerial %eha$ior is -------------a uncertain % fairly straightfor&ard !moderate"c loose and difficult to seed unimportante hidden

.cenarios and Questions

Corporate Ta+eo$er !.cenario"

Todd &or+s for .ea an Tech, an en$ironmental consulting firm that has 6ust %een purchased %y Pere3, In %iomedical research organization 7ased on his early encounters &ith the ne& upper management from Pere3, hethat .ea an is a 'lo&er +ey, friendlier' organization 9e is concerned that the ne& company &ill eliminate tcompany*s old culture, and he does not li+e the prospects

1@? If you &ere tal+ing &ith Todd and as+ed him &hat the termculture meant, he &ould reply that, %asically, it ia the formal rules of an organization % the nationality of the &or+ers in the companyc a system of shared meaning !easy"d a system that reflects di$ersity and respect for differencese the non$er%al %eha$iors in an organization

1@ Todd is concerned &ith the degree to &hich managers focus on results or outcomes rather than techni u processes used to achie$e those outcomes 9e is concerned &ith -------------

a sta%ility % aggressi$enessc team orientationd outcome orientation !moderate"e people orientation

1@N Todd notices that management is $ery concerned &ith the effects of outcomes on people &ithorganization This is referred to as -------------

a sta%ility % aggressi$enessc team orientationd outcome orientatione people orientation !moderate"

1@> Todd is assessing the organization0s -------------, the degree to &hich organizational acti$ities emphasizmaintaining the status uo in contrast to gro&th

a sta%ility !moderate" % aggressi$enessc team orientationd outcome orientatione people orientation

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11@ Todd has %een learning the se$en dimensions of organizational culture (hich of the follo&ing is not onthose se$en dimensions4

a .ta%ility % )ggressi$enessc Team orientationd Outcome orientatione Mem%er orientation !moderate"

Changing Organizational Culture !.cenario"Mary has %een as+ed %y the company president to change the organizational culture to reflect the company0organizational goals )s e3ecuti$e $ice president, she certainly understands the goals, %ut is really not sureunderstands &hat to do a%out the culture

111 Mary as+ed employees if they +ne& &hat constituted 'good employee %eha$ior ' .he found that $eryunderstood and most had a $ariety of ideas This is one indication

a that her company has a strong culture % that her company has a &ea+ culture !moderate"c that her company has no cultured that her company must ha$e high turno$ere that her company must not %e producti$e

11B Mary also found out that in order to %uild a strong ne& culture, she should do all %ut &hich of the follo&a 5tilize their recruitment efforts % e$elop socialization practices to %uild culturec #ncourage a high turno$er rated 9a$e management ma+e e3plicit &hat is $alued in the organization !difficult"e #ncourage employee commitment to organizational $alues

11 Mary &as surprised to find that most organizational culture strengths area &ea+ % &ea+ to moderatec moderate to strong !moderate"

d stronge $ery stronge $aried

#ssay Questions

1B In a short essay, identify and define the se$en dimensions that ma+e up an organization*s culture

)ns&er a Inno$ation and ris+ ta+ing degree to &hich employees are encouraged to %e inno$ati$e and ta+e ris+ % )ttention to detail degree to &hich employees are e3pected to e3hi%it precision analysis and attentio

detailc Outcome orientation degree to &hich managers focus on results or outcomes rather than on ho& thoutcomes are achie$edd ;eople orientation degree to &hich management decisions ta+e into account the effects on people in

organizatione Team orientation degree to &hich &or+ is organized around teams rather than indi$idualsf )ggressi$eness degree to &hich employees are aggressi$e and competiti$e rather than cooperati$eg .ta%ility degree to &hich organizational decisions and actions emphasize maintaining the status uo

!difficult"1B8 In a short essay, list and discuss the four most significant &ays in &hich culture is transmitted to emplInclude specific e3amples of each to support your ans&er

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)ns&er a .tories organizational stories typically contain a narrati$e of significant e$ents or people including su

things as the organization*s founders, rule %rea+ing, and reactions to past mista+es For instance, maat 2i+e feel that stories told a%out the company*s past help shape the future (hene$er possi%le, corpDstorytellersE !senior e3ecuti$es" e3plain the company*s heritage and tell stories that cele%rate pgetting things done These stories pro$ide prime e3amples that people can learn from

% Jituals corporate rituals are repetiti$e se uences of acti$ities that e3press and reinforce the $alues oforganization, &hat goals are most important, &hich people are important, and &hich are e3penda%leof the %est +no&n corporate rituals is Mary Gay Cosmetics* annual meeting for its sales representa

)t the meeting, salespeople are re&arded for their success in achie$ing sales goals &ith an array of flasgifts including gold and diamond pins, furs, and pin+ Cadillacs This Dsho&E acts as a moti$a pu%licly ac+no&ledging outstanding sales performance

c Material sym%ols the layout of an organization*s facilities, dress attire, the types of automo%ilee3ecuti$es are pro$ided, and the a$aila%ility of corporate aircraft are e3amples of material sym%ols include the size of offices, the elegance of furnishings, e3ecuti$e Dper+s,E the e3istence of emplolounges or on site dining facilities, and reser$ed par+ing spaces for certain employees These masym%ols con$ey to employees &ho is important, the degree of e uality desired %y top management, a+inds of %eha$ior that are e3pected and appropriate

d anguage many organizations and units &ithin organizations use language as a &ay to identify memof a culture 7y learning this language, mem%ers attest to their acceptance of the culture and &illingness to help to preser$e it For instance, Microsoft has its o&n uni ue $oca%ularyL D&or+ 6uart of deflecting a &or+ assignment to someone else &ithout ma+ing it appear that you*re a$oiding it"Deating your o&n dog foodE !the strategy of using your o&n soft&are programs or products in the stages as a &ay of testing it e$en if the process is disagreea%le" O$er time, organizations often deuni ue terms to descri%e e uipment, +ey personnel, suppliers, customers, or products that are related %usiness

!moderate"

Chapter 8 – .ocial Jesponsi%ility and Managerial #thics

True/False Questions8 The classical $ie& of organizational social responsi%ility is that management*s only social responsi%ilima3imize profits

True !moderate"

In the socioeconomic $ie& of organizational social responsi%ility, ma3imizing profits is a company0s priorityTrue !moderate"

> .ocially responsi%le %usinesses tend to ha$e less secure long run profitsFalse !difficult"

1B The difference %et&een an organization0s social o%ligation and social responsi$eness is the legal aspectFalse !moderate"

1A alues %ased management is an approach to managing in &hich managers esta%lish, promote, and praorganization0s shared $alues

True !easy"18 Though the outcomes are not perfectly measured, the ma6ority of research studies sho& a positi$e relatio %et&een corporate social in$ol$ement and economic performance

True !easy"B@ The mar+et approach to going green is &hen organizations respond to multiple demands of sta+eholdersFalse !moderate"B1 The acti$ist approach to going green is &hen an organization loo+s for &ays to respect and preser$e theand its natural resources

True !moderate"B8 #thics refers to the rules and principles that define right and &rong conduct

True !moderate"B? In the rights $ie& of ethics, decision ma+ers see+ to impose and enforce rules fairly and impartially

False !moderate"B The integrati$e social contracts theory proposes that decisions should %e made on the %asis of empirinormati$e factors

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True !difficult"BN .tudies ha$e sho&n that most %usiness people continue to hold utilitarian attitudes to&ard ethical %eha$i

True !moderate"B> In the precon$entional stage of moral de$elopment, indi$iduals ma+e a clear effort to define moral prinapart from the authority of the groups to &hich they %elong or society in general

False !moderate"

Multiple Choice8 (hich of the follo&ing is associated &ith the classical $ie& of social responsi%ility4

a economist Jo%ert Jeich % concern for social &elfarec stoc+holder financial return !moderate"d $oluntary acti$itiese ethical %eha$iors

The socioeconomic $ie& of corporate responsi%ility suggests that --------------a stoc+holders are the only responsi%ility % corporations are independent entitiesc ma3imizing profits is the first priority &hile social responsi%ility is the second priorityd corporations are responsi%le to the state and its citizens !moderate"e organizations ha$e an ethical %ut no legal responsi%ility to anyone e3cept stoc+holders

> -------------- is defined as a %usiness firm*s o%ligation, %eyond that re uired %y la& and economics pursue long term goals that are good for societya .ocial o%ligation % .ocial responsi%ility !moderate"c .ocial screeningd alue %ased managemente .ocial autonomy

8A (hich of the follo&ing terms refers to &hen a firm meets its economic and legal responsi%ilities4a social responsi%ility % social o%ligation !moderate"c social responsi$eness

d social dutye social standard

8 (hen a firm ad$ertises that it only uses recycled paper products, it is --------------a meeting its social o%ligation % meeting social responsi%ilitiesc %eing socially responsi$e !difficult"d paying attention to the %ottom linee attempting to defraud consumers

8> One should %e cautious in the interpretation, %ut a summary of more than a dozen studies analyzirelationship %et&een organizational social responsi%ility and economic performance pro$ides &hat conclua 7eing socially responsi%le causes good economic performance % Kood economic performance allo&s firms to %e socially responsi%lec There is a positi$e relationship %et&een corporate social in$ol$ement and economic perform

!difficult"d Corporate social in$ol$ement tends to de$alue stoc+ price in the long rune Corporate social in$ol$ement tends to result in increased net income %ut lo&er stoc+ prices

a .ocial autonomy

?8 (hich of the follo&ing is true regarding shared corporate $alues4a Indi$iduals adapt easily to shared corporate $alues

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% Top management dictates shared corporate $aluesc It is not easy to esta%lish shared corporate $alues !moderate"d Most corporations &ill %e una%le to successfully esta%lish shared corporate $aluese .hared corporate $alues negati$ely impact team spirit

B The -------------- approach to en$ironmental issues is &hen an organization o%eys rules and regulation %ut e3hi%its little en$ironmental sensiti$itya legal !moderate" % mar+et

c sta+eholder d responsi%ilitye acti$ist

A The -------------- approach to en$ironmental issues is &hen organizations respond to en$ironmental preferences of their customersa legal % mar+et !moderate"c sta+eholder d responsi%ilitye acti$ist

8 (hich of the follo&ing approaches to&ard en$ironmental issues e3hi%its the highest degree of en$ironmsensiti$ity and is a good illustration of social responsi%ility4a legal approach % mar+et approachc sta+eholder approachd acti$ist approach !moderate"

N1 (hich of the follo&ing is a %asic definition of ethics4a moral guidelines for %eha$ior % rules for ac+no&ledging the spirit of the la&c rules or principles that define right and &rong conduct !moderate"d principles for legal and moral de$elopmente There is no &ay to define ethics

NA (hich of the follo&ing encourages efficiency and producti$ity and is consistent &ith the goal of pma3imization4a utilitarian $ie& !moderate" % principled $ie&c rights $ie&d theory of 6ustice $ie&e integrati$e social contracts theory

N8 The rights $ie& of ethics is %ased on &hich of the follo&ing4a decisions %ased on their outcomes or conse uences % the imposition and enforcement of fair and impartial rulesc respect and protection of indi$idual li%erties and freedoms !moderate"d the process used to determine the distri%ution of resourcese the e3isting ethical norms in industries and corporations

N? The theory of 6ustice $ie& of ethics is %ased on &hich of the follo&ing4a the process used to determine the distri%ution of resources % the e3isting ethical norms in industries and corporationsc decisions %ased on their outcomes or conse uencesd the imposition and enforcement of fair and impartial rules !difficult"e respect and protection of indi$idual li%erties and freedoms

N The integrati$e social contracts theory of ethics is %ased on &hich of the follo&ing4

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a the process used to determine the distri%ution of resources % decisions %ased on their outcomes or conse uencesc the imposition and enforcement of fair and impartial rulesd the e3isting ethical norms in industries and corporations !difficult"e respect and protection of indi$idual li%erties and freedoms

>B ) personality measure of a person0s con$ictions is --------------a moral de$elopment % ego strength !moderate"

c locus of controld social desira%ilitye self image

> -------------- is a personality attri%ute that measures the degree to &hich people %elie$e they control theo&n fatea #go strength % ocus of control !easy"c .ocial responsi%ilityd .ocial o%ligatione .ocial autonomy

> (hich of the follo&ing is true concerning the impact of organizational culture on ethical %eha$ior4a o& conflict tolerance leads to ethical %eha$ior % ) strong culture &ill support high ethical standards !moderate"c Conflict tolerance is related to unethical %eha$iord ) culture that is high in control tends to encourage unethical %eha$iore 2one of the a%o$e is true

1@A ) sur$ey of $arious codes of ethics found that their content tended to fall into all of the follo&ing cate# C#;TLa %e a dependa%le and organizational citizen % do not do anything unla&ful or improper that &ill harm the organizationc consider profit ma3imization to %e the primary focus of the company !moderate"d %e good to customers

#ssay Questions

(9)T I. .OCI) J#.;O2.I7I ITH4

1BB In short essay, discuss social responsi%ility and compare and contrast social o%ligation and responsi$eness

)ns&er a .ocial responsi%ility adds an ethical imperati$e to do those things that ma+e society %etter and not

those that could ma+e it &orse ) social responsi%le organization goes %eyond &hat it must do %y chooses to do only %ecause it ma+es economic sense to do &hat it can to help impro$e society %ethat*s the right, or ethical, thing to do .ocial responsi%ility re uires %usiness to determine &hat is r&rong and to ma+e ethical decisions and engage in ethical %usiness acti$ities ) social responorganization does &hat is right %ecause it feels it has a responsi%ility to act that &ay

% .ocial o%ligation is the o%ligation of a %usiness to meet its economic and legal responsi%ilitieorganization does the minimum re uired %y la& Follo&ing an approach of social o%ligation, pursues social goals only to the e3tent that they contri%ute to its economic goals This approach is on the classical $ie& of social responsi%ility: that is, the %usiness feels its only social duty is stoc+holders In contrast to social o%ligation, ho&e$er, %oth social responsi%ility and social responsgo %eyond merely meeting %asic economic and legal standards

c .ocial responsi$eness refers to the capacity of a firm to adapt to changing societal conditions The idsocial responsi$eness stresses that managers ma+e practical decisions a%out the societal actions in &

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they engage ) socially responsi$e organization acts the &ay it does %ecause of its desire to satisfy s popular social need .ocial responsi$eness is guided %y social norms The $alue of social norms ithey can pro$ide managers &ith a meaningful guide for decision ma+ing

!moderate"

1B8 In a short essay, e3plain the four approaches that organizations can ta+e &ith respect to en$ironmental issu

)ns&er The first approach simply is doing &hat is re uired legallyL the legal approach 5nder this appr

organizations e3hi%it little en$ironmental sensiti$ity They o%ey la&s, rules, and regulations &illing&ithout legal challenge, and they may e$en try to use the la& to their o&n ad$antage, %ut that*s the e3tetheir %eing green This approach is a good illustration of social o%ligationL These organizations simfollo&ing their legal o%ligations of pollution pre$ention and en$ironmental protection )s an organiz %ecomes more a&are of and sensiti$e to en$ironmental issues, it may adopt the mar+et approach Iapproach, organizations respond to the en$ironmental preferences of their customers (hate$er customdemand in terms of en$ironmentally friendly products &ill %e &hat the organization pro$ides 5nder theapproach, the sta+eholder approach, the organization chooses to respond to multiple demands madesta+eholders 5nder the sta+eholder approach, the green organization &ill &or+ to meet the en$ironmdemands of groups such as employees, suppliers, or the community 7oth the mar+et approach andsta+eholder approach are good illustrations of social responsi$eness Finally, if an organization pursueacti$ist approach, it loo+s for &ays to respect and preser$e the earth and its natural resources The acapproach e3hi%its the highest degree of en$ironmental sensiti$ity and is a good illustration of soresponsi%ility!moderate"

1B? In a short essay, descri%e the four stage model of an organization*s e3panding social responsi%ility

)ns&er ) .tage 1 manager &ill promote stoc+holders* interests %y see+ing to minimize costs and ma3imize pro)lthough all la&s and regulations &ill %e follo&ed, .tage managers do not feel o%ligated to satisfy osocietal needs This is consistent &ith Friedman*s classical $ie& of social responsi%ility )t .tage B, man&ill accept their responsi%ility to employees and focus on human resource concerns 7ecause they*ll &recruit, +eep, and moti$ate good employees, .tage B managers &ill impro$e &or+ing conditions, e3pemployee rights, increase 6o% security, and the li+e )t .tage , managers e3pand their responsi%ilities to

sta+eholders in the specific en$ironment that is, customers and suppliers .ocial responsi%ility goals of .t managers include fair prices, high uality products and ser$ices, safe products, good supplier relationssimilar actions Their philosophy is that they can meet their responsi%ilities to stoc+holders only %y meetneeds of their other constituents Finally, .tage A characterizes the e3treme socioeconomic definition of sresponsi%ility )t this stage, managers feel a responsi%ility to society as a &hole Their %usiness is se pu%lic entity, and they feel a responsi%ility for ad$ancing the pu%lic good The acceptance oresponsi%ility means that managers acti$ely promote social 6ustice, preser$e the en$ironment, and supsocial and cultural acti$ities They ta+e these stances e$en if such actions negati$ely affect profits

!moderate"

1B In a short essay, discuss the four $ie&s of ethics Include a discussion of the %enefits and dra&%ac+s each of the four $ie&s

)ns&er a The utilitarian $ie& of ethics says that ethical decisions are made solely on the %asic of their outcomconse uences 5tilitarian theory uses a uantitati$e method for ma+ing ethical decisions %y loo+ho& to pro$ide the greatest good for the greatest num%er 5tilitarianism encourages efficiency producti$ity and is consistent &ith the goal of profit ma3imization 9o&e$er, it can result in %allocations of resources, especially &hen some of those affected %y the decision lac+ representation$oice in the decision 5tilitarianism can also result in the rights of some sta+eholders %eing ignored

% The rights $ie& of ethics is concerned &ith respecting and protecting indi$idual li%erties and prisuch as the rights to pri$acy, freedom of conscience, free speech, life and safety, and due process &ould include, for e3ample, protecting the free speech rights of employees &ho report legal $iolationstheir employers The positi$e side of the rights perspecti$e is that it protects indi$iduals* %asic rights,

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has a negati$e side for organizations It can present o%stacles to high producti$ity and efficienccreating a &or+ climate that is more concerned &ith protecting indi$iduals* rights than &ith getting thdone

c The ne3t $ie& is the theory of 6ustice $ie& of ethics 5nder this approach, managers are to imposenforce rules fairly and impartially and do so %y follo&ing all legal rules and regulations ) man&ould %e using the theory of 6ustice perspecti$e %y deciding to pro$ide the same rate of pay to indi$&ho are similar in their le$els of s+ills, performance, or responsi%ility and not %asing that decisioar%itrary differences such as gender, personality, race, or personal fa$orites 5sing standards of 6ustichas pluses and minuses It protects the interests of those sta+eholders &ho may %e underrepresen

lac+ po&er, %ut it can encourage a sense of entitlement that might ma+e employees reduce ris+ ta+inno$ation, and producti$ityd The final ethics perspecti$e, the integrati$e social contracts theory, proposes that ethical decisions sh

%e %ased on empirical and normati$e factors This $ie& of ethics is %ased on the integration DcontractsEL the general social contract that allo&s %usinesses to operate and defines the accepta%lerules, and a more specific contract among mem%ers of a community that addresses accepta%le &a %eha$ing This $ie& of %usiness differs from the other three in that it suggests that managers need tat e3isting ethical norms in industries and companies in order to determine &hat constitutes right &rong decisions and actions

!difficult"

Chapter ? – ecision Ma+ingL The #ssence of the Manager*s


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? ') discrepancy %et&een an e3isting and a desired state of affairs' descri%es &hich of the steps indecision ma+ing process4

a criteria &eight allocation % analysis of alternati$esc pro%lem identification !difficult"d decision effecti$eness e$aluatione decision criteria identification

N (hich of the follo&ing must %e present in order to initiate the decision ma+ing process4a plenty of time

% pressure to act !moderate"c a lac+ of authorityd a lac+ of resourcese en$ironmental certainty

> Managers aren0t li+ely to characterize something as a pro%lem if they percei$e --------------a they don0t ha$e authority to act !difficult"

% pressure to actc a discrepancyd they ha$e sufficient resourcese they ha$e %udgetary authority

AA .electing an alternati$e in the decision ma+ing process is accomplished %y --------------a choosing the alternati$e &ith the highest score !easy"

% choosing the one you li+e %estc selecting the alternati$e that has the lo&est priced selecting the alternati$e that is the most relia%lee choosing the alternati$e you thin+ your %oss &ould prefer

A (hich of the follo&ing is the final step in the decision ma+ing process4a identifying the pro%lem % e$aluating the decision0s effecti$eness !easy"

c identifying decision criteriad selecting an alternati$e that can resol$e the pro%leme allocating &eights to alternati$es

AN (hich of the follo&ing is important to remem%er in e$aluating the effecti$eness of the decision m process4a Ignore criticism concerning the decision ma+ing % Hou may ha$e to start the &hole decision process o$er !difficult"c Jestart the decision ma+ing process if the decision is less than 8@R effecti$ed >@R of pro%lems &ith decision ma+ing occur in the implementation stepe Geep trac+ of pro%lems &ith the chosen alternati$e, %ut only change those issues that upper managdemand

A> ecision ma+ing is synonymous &ith --------------a managing !easy"

% leadingc controllingd planninge organizing

81 (hich of the follo&ing is not an 'organizing' decision4a (hat are the organization0s long term o%6ecti$es4 !moderate" % 9o& many employees should I ha$e report directly to me4c 9o& should 6o%s %e designed4d 9o& much centralization should there %e in the organization4e (hen should the organization implement a different structure4

8B (hich of the follo&ing is not a 'leading' decision4

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a 9o& do I handle employees &ho appear to %e lo& in moti$ation4 % (hat is the most effecti$e leadership style in a gi$en situation4c 9o& &ill a specific change affect &or+er producti$ity4d (hen is the right time to stimulate conflict4e 9o& should 6o%s %e designed4 !moderate"

8 (hich of the follo&ing is not a 'controlling' decision4a (hat acti$ities in the organization need to %e controlled4 % 9o& should those acti$ities %e controlled4

c (hen is a performance de$iation significant4d (hen is the right time to stimulate conflict4 !moderate"e (hat type of management information system should the organization ha$e4

8A Managers are assumed to %e --------------: they ma+e consistent, $alue ma3imizing choices &ithispecified constraints

a rational !easy" % leadersc organizedd satisficerse programmed

8 (hich of the follo&ing is not a $alid assumption a%out rationality4a The pro%lem is clear and unam%iguous % ) single &ell defined goal is to %e achie$edc ;references are cleard ;references are constantly changing !difficult"e 2o time or cost constraints e3ist

8N In '%ounded rationality,' managers construct -------------- models that e3tract the essential features from pro%lemsa multiple % %indingc interacti$ed simplified !difficult"

e past8> )ccording to the te3t, %ecause managers can*t possi%ly analyze all information on all alternati$es, ma

--------------, rather than --------------a ma3imize: satisfice % ma3imize: minimizec satisfice: minimized satisfice: ma3imize !moderate"

?B )n increased commitment to a pre$ious decision despite e$idence that it may ha$e %een &rong is referred -------------a economies of commitment % escalation of commitment !moderate"c dimensional commitmentd e3pansion of commitment

?A )ccording to the te3t, all of the follo&ing are aspects of intuition # C#;TLa e3perienced %ased decisions % affect initiated decisionsc cogniti$e %ased decisionsd $alues or ethics %ased decisionse programmed decisions !easy"

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?8 )ccording to the te3t, ------------- are straightfor&ard, familiar, and easily defined pro%lemsa poorly structured pro%lems % &ell structured pro%lems !moderate"c uni ue pro%lemsd non programmed pro%lemse programmed pro%lems

?N -------------- decision ma+ing is relati$ely simple and tends to rely hea$ily on pre$ious solutionsa 2onprogrammed % inear

c .atisficingd Integrati$ee ;rogrammed !moderate"

@ ) -------------- is a series of interrelated se uential steps that a manager can use for responding to astructured pro%lem

a procedure !easy" % rulec policyd systeme solution

1 ) -------------- is an e3plicit statement that tells a manager &hat he or she ought or ought not to doa procedure % policy

c rule !moderate"d solutione system

B ) -------------- pro$ides guidelines to channel a manager0s thin+ing in a specific directiona system % rulec solution

d policy !moderate"e procedure

8 ) %usiness school0s statement that it 'stri$es for producti$e relationships &ith local organizations,' ie3ample of a --------------

a rule

% policy !moderate"c procedured commitmente contract

N (hich of the follo&ing terms is associated &ith nonprogrammed decisions4a uni ue !moderate" % recurringc routined repetiti$ee &ell defined

> o&er le$el managers typically confront &hat type of decision ma+ing4a uni ue % nonroutinec programmed !moderate"d nonprogrammede nonrepetiti$e

N If an indi$idual +no&s the price of three similar cars at different dealerships, he/she is operating undertype of decision ma+ing condition4

a ris+ % uncertaintyc certainty !easy"d factuale unprogrammed

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NA -------------- is those conditions in &hich the decision ma+er is a%le to estimate the li+elihood of certaioutcomes

a Certainty % Jis+ !easy"c 5ncertaintyd Ma3ima3e Ma3imin

N8 ) retail clothing store manager &ho estimates ho& much to order for the current spring season %ased ospring0s outcomes is operating under &hat +ind of decision ma+ing condition4

a seasonal % ris+ !difficult"c uncertaintyd certaintye cyclical

N? -------------- is a situation in &hich a decision ma+er has neither certainty nor reasona%le pro%a%iliestimates a$aila%le

a Certainty % Jis+ c 5ncertainty !easy"d Ma3ima3e Ma3imin

N ) person at a horse racetrac+ &ho %ets all of his/her money on the odds %ased longshot to '&in' !rathe'place' or 'sho&'" is ma+ing &hat +ind of choice4

a ma3ima3 !moderate" % ma3iminc minima3d minimin

N> )n indi$idual ma+ing a 'ma3imin' type of choice has &hat type of psychological orientation concernuncertain decision ma+ing4a optimist % realistc pessimist !moderate"d satisficer

e e3tremist>1 )ccording to the te3t, a manager &ho desires to minimize his or her ma3imim DregretE &ill opt -------------- choice

a ma3ima3 % ma3iminc minima3 !moderate"d minimin

> (hich of the follo&ing decision ma+ing styles ha$e lo& tolerance for am%iguity and are rational in theiof thin+ing4

a directi$e !moderate" % egotisticalc analyticd conceptuale %eha$ioral>8 The decision ma+ing style that ma+es fast decisions and focuses on the short terms is referred to

-------------- stylea directi$e !moderate" % egotisticalc analyticd conceptuale %eha$ioral

>N )ccording to the te3t, -------------- are %est characterized as careful decision ma+ers &ith the a%ilityto adapt or cope &ith uni ue situations

a conceptual

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% %eha$ioralc empirical

d analytic !moderate"e spatial

>> (hich of the follo&ing is the decision ma+ing style that &ould most li+ely loo+ at as many alternati$ possi%le and focus on the long run4

a analytical % directi$ec conceptual !moderate"

d %eha$iorale spatial1@1 ) manager &ho &ould decide &hat computer system to purchase for the department %y holding a mand recei$ing feed%ac+ from his/her su%ordinates matches &ith &hich type of decision ma+ing style4

a analytical % %eha$ioral !difficult"

c conceptuald directi$ee empirical

.cenariosecision Ma+ing Conditions !.cenario"

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1B@ .andy


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)ns&er a (ell structured pro%lems the goal of the decision mar+er is clear, the pro%lem is familiar, and inform

a%out the pro%lem is easily defined and complete #3amples of these types of pro%lems might inccustomer*s &anting to return a purchase to a retail store, a supplier*s %eing late &ith an important dela ne&s team*s responding to an une3pected and fast %rea+ing e$ent, or a college*s handling of a s&anting to drop a class .uch situations are called &ell structured pro%lems since they are straightforfamiliar, and easily defined pro%lems In handling these pro%lem situations, the manager u programmed decision ecisions are programmed to the e3tent that they are repetiti$e and routine an

the e3tent that a definite approach has %een &or+ed out for handling them 7ecause the pro%lem istructured, the manager doesn*t ha$e to go to the trou%le and e3pense of going through an in$odecision progress ;rogrammed decision ma+ing is relati$ely simple and tends to rely hea$ily on pre$solutions

% ;oorly structured pro%lems – these pro%lems are ne& or unusual and for &hich information is amor incomplete For e3ample, the selection of an architect to design a ne& corporate manufacturing fain 7ang+o+ is an e3ample of a poorly structured pro%lem (hen pro%lems are poorly structured, mamust rely on nonproprammed decision ma+ing in order to de$elop uni ue solutions 2onprogramdecisions are uni ue and nonrecurring (hen a manager confronts a poorly structured pro%lem, orthat is uni ue, there is no cut and dried solution It re uires a custom made response thnonprogrammed decision ma+ing

!difficult"

1 @ In a short essay, list and discuss the four decision ma+ing styles as descri%ed in the te3t

)ns&er a irecti$e style – people using the directi$e style ha$e lo& tolerance for am%iguity and are rational in

&ay of thin+ing They*re efficient and logical irecti$e types ma+e fast decisions and focus on therun Their efficiency and speed in ma+ing decisions often result in their ma+ing decisions &ith mininformation and assessing fe& alternati$es

% )nalytic style – decision ma+ers &ith an analytic style ha$e much greater tolerance for am%iguity thdirecti$e types They &ant more information %efore ma+ing a decision and consider more alternati$ea directi$e style decision ma+er does )nalytic decision ma+ers are %est characterized as careful decma+ers &ith the a%ility to adapt or cope &ith uni ue situations

c Conceptual style – indi$iduals &ith a conceptual style tend to %e $ery %road in their outloo+ and &i

at many alternati$es They focus on the long run and are $ery good at finding creati$e solution pro%lemsd 7eha$ioral style – these decision mar+ers &or+ &ell &ith others They*re concerned a%o

achie$ements of su%ordinates and are recepti$e to suggestions from others They often use meetincommunicate, although they try to a$oid conflict )cceptance %y others is important to this decisma+ing style

!moderate"

Chapter – Foundations of ;lanning

True/False Questions

A Jesearch indicates that managers &ho plan al&ays outperform managers &ho do not planFalse !moderate"

> ;lans that specify the details of achie$ement of the o$erall o%6ecti$es are called operational plansTrue !difficult"

1@ irectional plans ha$e clearly defined o%6ecti$esFalse !moderate"

1B .tanding plans are created in response to programmed decisions that managers ma+e and include policies,rules, and proceduresTrue !moderate"

B?


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1 The greater the en$ironmental certainty, the more plans need to %e directional and emphasis placed on thetermFalse !moderate"

BB )n organization0s real goals are &hat they actually plan on accomplishing, rather than &hat they hope toaccomplishFalse !moderate"

BA Jeal goals are official statements of &hat an organization says its goals areFalse !easy"

Multiple Choice? One purpose of planning is that it minimizes -------------- and --------------

a cost: time % time: personnel needsc &aste: redundancy !difficult"d time: &astee mista+es: cost

N (hat does the e$idence suggest a%out organizations that plan compared to organizations that do not plan4a ;lanning organizations al&ays outperform nonplanning organizations % 2onplanning organizations al&ays outperform planning organizationsc ;lanning organizations generally outperform nonplanning organizations !easy"d 2onplanning organizations generally outperform planning organizationse They generally perform at a%out the same le$el

A8 (hich of the follo&ing is the foundation of planning4a employees % goals !easy"c outcomesd computerse the planning department

A? )ccording to the te3t, ------------- are documents that outline ho& goals are going to %e met and &hichtypically descri%e resource allocations, schedules, and other necessary actions to accomplish the goalsa strategies % goalsc plans !moderate"d policiese procedures

8@ (hich of the follo&ing is true concerning an organization0s stated o%6ecti$es4a They issue identical o%6ecti$es to all constituents % Organizations typically ha$e internal and e3ternal sets of o%6ecti$esc They may issue different o%6ecti$es to stoc+holders, customers, employees, and the pu%lic

!moderate"d It is illegal to issue conflicting stated o%6ecti$ese .tated o%6ecti$es are usually in line &ith short term actions

8A (hat should a person do to understand &hat are the real o%6ecti$es of the organization4a o%ser$e organizational mem%er actions !moderate" % attend a stoc+holders annual meetingc read their statement of purposed read their annual reporte &atch tele$ision ne&s reports

8> (hen &e categorize plans as %eing single use $ersus standing, &e categorize them %y --------------

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a %readth % specificityc fre uency of use !easy"d depthe time frame

?1 7ased on the information presented in the te3t, -------------- are short term, specific, and standinga operational !moderate" % long term

c strategicd specifice directional

? )n organizational plan that has a ? year time frame &ould %e considered &hat type of plan4a operational % short termc strategicd intermediatee long term !moderate"

?N .trategic plans tend to include a time period of usually --------------a 1 year % 1 yearsc years or more !moderate"d 8 years or moree at least 1@ years

1 Compared to directional plans, &hat type of plan has clearly defined o%6ecti$es4a strategic % single usec short termd specific !moderate"e standing

? ;lanning accuracy &ith a high degree of en$ironmental change tends to produce &hich of the follo

results4a ;lanning accuracy is li+ely % ;lanning accuracy %ecomes much more importantc ;lanning accuracy %ecomes less importantd ;lanning accuracy is less li+ely !moderate"e ;lanning accuracy occurs in the long run

N ) -------------- plan is a one time plan designed to meet the needs of a uni ue situation and created inresponse to nonprogrammed decisions that managers ma+ea single use !easy" % short termc directionald standinge strategic

> ) small to&n0s preparation for a $isit %y the ;resident of the 5nited .tates &ould %e considered &hat ty plan4a strategic % directionalc standingd long terme single use !moderate"

BN


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N1 ) city0s policy concerning s+ate%oarding on do&nto&n side&al+s pro$iding guidance for police action %e considered &hat type of plan4a standing !difficult" % contingencyc directionald single usee strategic

NA (here in the organizational hierarchy are traditional goals determined4

a front line employees % team leadersc lo&er le$el managersd middle managerse top managers !moderate"

N> ) management system in &hich specific performance goals are 6ointly determined %y employees andmanagers is +no&n as --------------a management %y o%6ecti$es !moderate" % means ends chainc traditional goal settingd management %y opinions

>1 (hich of the follo&ing is not one of the four common elements of Management 7y O%6ecti$es !M7O"4a goal specificity % participati$e decision ma+ingc an e3plicit time periodd a systems loop !difficult"e performance feed%ac+

> Management 7y O%6ecti$es !M7O" can %e descri%ed %y &hich of the follo&ing statements4a an autocratic system % a '%ottom up' systemc a 'top do&n' systemd %oth a 'top do&n' and a '%ottom up' system !difficult"

e a static system1@8 )ccording to the %o3ed feature, DManaging in an # 7usiness (orld,E pro%a%ly the %iggest change for p

in e %usiness is that --------------a the en$ironment is more sta%le % customers are calling the shots !moderate"c employees are ma+ing the demandsd only a fe& competitors e3ist

#ssay Questions

1BB In a short essay, list and discuss the four reasons for planning)ns&er a ;lanning esta%lishes coordinated effort It gi$es direction to managers and nonmanagers ali+e employees +no& &here the organization or &or+ unit are going and &hat they must contri%ute to r

goals, they can coordinate their acti$ities, cooperate &ith each other, and do &hat it ta+es to accompthose goals (ithout planning, departments and indi$iduals might %e &or+ing at cross purp pre$enting the organization from mo$ing efficiently to&ard its goals

% ;lanning reduces uncertainty %y forcing managers to loo+ ahead, anticipate change, consider the impchange, and de$elop appropriate responses It also clarifies the conse uences of actions managers mta+e in response to change #$en though planning can*t eliminate change, managers plan in ordanticipate changes and de$elop the most effecti$e response to them

c ;lanning reduces o$erlapping and &asteful acti$ities (hen &or+ acti$ities are coordinated aroesta%lished plans, &asted time and resources and redundancy can %e minimized Furthermore, &hen

B>


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and ends are made clear through planning, inefficiencies %ecome o%$ious and can %e correcteliminated

d ;lanning esta%lishes goals or standards that are used in controlling If managers are unsure of &haare trying to accomplish, they &ill %e una%le to determine &hether or not the goal has actually achie$ed In planning, goals and plans are de$eloped Then, through controlling, actual performancompared against the goals, significant de$iations are identified, and necessary correcti$e action is ta+(ithout planning, there &ould %e no &ay to control

!moderate"

1B In a short essay, list and discuss fi$e characteristics of &ell defined goals)ns&er !1" ) &ell designed goal should %e &ritten in terms of outcomes rather than actions The desired end rethe most important element of any goal and, therefore, the goal should %e &ritten to reflect this !B" 2goal should %e measura%le and uantifia%le It*s much easier to determine if a goal has %een mmeasura%le In line &ith specifying a uantifia%le measure of accomplishment, ! " a &ell designed goaalso %e clear as to a time frame )lthough open ended goals may seem prefera%le %ecause of their sufle3i%ility, in fact, goals &ithout a time frame ma+e an organization less fle3i%le %ecause a manager issure &hen the goal has %een met or &hen he or she should call it uits %ecause the goal &ill ne$er %regardless of ho& long he or she &or+s at it !A" 2e3t a &ell designed goal should %e challengiattaina%le Koals that are too easy to accomplish are not moti$ating and neither are goals that are not attae$en &ith e3ceptional effort !8" 2e3t, &ell designed goals should %e &ritten do&n )lthough actually &do&n goals may seem too time consuming, the process of &riting the goals forces people to thin+ tthrough In addition, the &ritten goals %ecome $isi%le and tangi%le e$idence of the importance of &to&ard something !?" Finally, &ell designed goals are communicated to all organizational mem%ers &hto +no& the goals Ma+ing people a&are of the goals ensures that they*re Don the same pageE and &or&ays to ensure the accomplishment of the organizational goals!moderate"

1BN In a short essay, list and discuss the fi$e steps in the goal setting process)ns&er a .tep 1L Je$ie& the organization*s mission, the purpose of the organization These %road stateme

&hat the organization*s purpose is and &hat it hopes to accomplish pro$ide an o$erall guide to &organizational mem%ers thin+ is important It*s important to re$ie& these statements %efore &ritin %ecause the goals should reflect &hat the mission statement says

% .tep BL #$aluate a$aila%le resources ) manager doesn*t &ant to set goals that are impossi%le togi$en the a$aila%le resources #$en though goals should %e challenging, they should %e realisticresources a manager has to &or+ &ith doesn*t allo& for the achie$ement of that goal no matter ho& hamanager tries of ho& much effort is e3erted, that goal shouldn*t %e set

c .tep L etermine indi$idually, or &ith input from others, the goals These goals reflect desired outand should %e congruent &ith the organizational mission and goals in other organizational areas Tgoals should %e measura%le, specific, and include a time frame for accomplishment

d .tep AL (rite do&n the goals and communicate them to all &ho need to +no& (riting goals do&n fo people to thin+ them through and also ma+es those goals $isi%le and tangi%le e$idence of the importa&or+ing to&ard something

e .tep 8L Je$ie& results and &hether goals are %eing met Ma+e changes, as needed Once the goa %een esta%lished, &ritten do&n, and communicated, a manager is ready to de$elop plans for pursuingoals

!difficult"

1B> In a short essay, list and discuss the three contingency factors that affect planning)ns&er a e$el in the organization – for the most part, operational planning dominates managers* planning effo

lo&er le$els )t higher organizational le$els, the planning %ecomes more strategy oriented % egree of en$ironmental uncertainty – &hen en$ironmental uncertainty is high, plans should %e sp

%ut fle3i%le Managers must %e prepared to re&ord and amend plans as they*re implemented )managers may e$en ha$e to a%andon their plans

c ength of future commitments – the more that current plans affect future commitments, the longer theframe for &hich managers should plan This commitment concept means that plans should e3tend

@


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e 9oo$er 5ni$ersal is a di$ersified, multi industry corporation &ith strong manufacturing capa%ientrepreneurial policies, and indi$idual %usiness unit autonomy

AA (hich of the follo&ing is not part of the organization0s e3ternal en$ironment4a &hat competition is doing % pending legislation that might affect the organizationc consumer trendsd employees0 education le$el !moderate"e la%or supply

A8 (hat step in the strategic management process follo&s analyzing the e3ternal en$ironment4a identifying opportunities and threats !moderate" % mission statementc e$aluationd identifying strengths and &ea+nessese formulating strategies

8@ (hat step in the strategic management process follo&s analyzing the organization0s resources4a identifying opportunities and threats % formulating strategyc mission statementd implementing strategye identifying strengths and &ea+nesses !easy"

88 In the strategic management process, &hat step comes prior to e$aluating results4a identifying strengths and &ea+nesses % formulating strategiesc identifying opportunities and threatsd implementing strategies !easy"f analyzing the organization0s resources

8? (hat is the final step in the strategic management process4a mission statement % identifying opportunities and threats

c implementing strategiesd analyzing the organization0s resourcese e$aluating results !easy"

?@ (hich of the follo&ing is one le$el of strategic planning in large companies4a management le$el % financial le$elc staff le$eld corporate le$el !easy"e systems le$el

?B o&er le$el managers in an organization are typically responsi%le for &hich of the follo&ing typstrategies4a functional le$el strategies % %usiness le$el strategiesc corporate le$el strategiesd mergers and ac uisitions

? (hich of the follo&ing is associated &ith corporate le$el strategies4a They are needed if your organization is in more than one type of %usiness !moderate" % They ans&erL '9o& should our %usiness compete4'c They represent a single %usinessd They are a method of support for the %usiness le$el strategiese They determine the operations of a single %usiness unit

B


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?8 (hen ;epsiCo see+s to integrate the strategies of ;epsi, 5p International, and Frito ay, it is de$elop&hat le$el of %usiness strategy4a functional % systemc managementd %usinesse corporate !moderate"

?N #3amples of a corporate le$el sta%ility strategy include all of the follo&ing # C#;TLa continuing to ser$e the same clients %y offering the same product or ser$ice % maintaining mar+et sharec sustaining the organization*s return on in$estment resultsd implementing $ertical or horizontal integration !moderate"

@ (hen should management pursue a sta%ility strategy4a Organizational performance is slipping % The en$ironment is changingc The organization0s performance is satisfactory and the en$ironment is sta%le !moderate"d The firm has $alua%le strengthse There are a%undant en$ironmental opportunities

? In --------------, the organization attempts to gain control of its inputs %y %ecoming its o&n suppliera for&ard $ertical integration % %ac+&ard $ertical integration !moderate"c horizontal integrationd related di$ersificatione unrelated di$ersification

N (hich of the follo&ing descri%es a company gro&ing %y com%ining &ith other organizations in thindustry4a for&ard $ertical integration % %ac+&ard $ertical integrationc horizontal integration !moderate"

d related di$ersificatione unrelated di$ersification

N? (hich of the four %usiness groups in the corporate portfolio matri3 has high gro&th and high mar+et sharea cash co& % stars !difficult"c uestion mar+sd dogse elephants

>N Michael ;orter0s competiti$e strategies frame&or+ identifies three generic competiti$e strategiesLleadership, differentiation, and --------------a depth % %readthc re$enue gro&thd focus !moderate"e ac uisition

1@B ;orter0s competiti$e strategies frame&or+ descri%es a -------------- strategy &here%y an organization &ato %e uni ue in its industry along dimensions &idely $alued %y %uyersa differentiation !moderate" % focusc cost leadershipd depth


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1B In a short essay, list and discuss the three le$els of strategy that an organization must de$elop)ns&er a Corporate le$el strategy – this strategy see+s to determine &hat %usinesses a company should %

&ants to %e in Corporate le$el strategy determines the direction that the organization is going anroles that each %usiness unit in the organization &ill plan in pursuing that direction

% 7usiness le$el strategy – this strategy see+s to determine ho& an organization should compete in eits %usinesses For a small organization in only one line of %usiness or the large organization that hdi$ersified into different products or mar+ets, the %usiness le$el strategy typically o$erlaps &it

organization*s corporate strategy For organizations &ith multiple %usinesses, ho&e$er, each di$isioha$e its o&n strategy that defines the products or ser$ices it &ill offer and the customers it &ants to reac Functional le$el strategy – this strategy see+s to determine ho& to support the %usiness le$el strate

organizations that ha$e traditional functional departments such as manufacturing, mar+eting, humresources, research and de$elopment, and finance, these strategies need to support the %usinessstrategy

!moderate"

1B? In a short essay, discuss the 7oston Consulting Kroup !7CK" matri3 and e3plain its usefulness in segme %usinesses Include a discussion of the characteristics for each of the four categories %ased on the 7CK m

)ns&er The 7oston Consulting Kroup matri3 introduced the idea that an organization*s %usinesses could %e e$aland plotted using a B 3 B matri3 to identify &hich ones offered high potential and &hich &ere a draiorganizational resources The horizontal a3is represents mar+et share, &hich &as e$aluated as either lohigh: and the $ertical a3is indicates anticipated mar+et gro&th, &hich also &as e$aluated as either lo& or h7ased on its e$aluation, the %usiness &as placed in one of four categoriesLa Cash co&s !lo& gro&th, high mar+et share" – %usinesses in this category generate large amounts o

%ut they prospects for future gro&th are limited % .tars !high gro&th, high mar+et share" – these %usinesses are in a fast gro&ing mar+et, and

dominant share of that mar+et Their contri%ution to cash flo& depends on their need for resourcesc Question mar+s !high gro&th, lo& mar+et share" – these %usinesses are in an attracti$e industry, %u

small mar+et share percentaged ogs !lo& gro&th, lo& mar+et share" – %usinesses in this category do not produce, or consume, much

9o&e$er, they hold no promise for impro$ed performance

!easy"1BN In a short essay, list and discuss the fi$e competiti$e forces, according to ;orter, &hich determine ind

attracti$eness and profita%ility

)ns&er a Threat of ne& entrants – determined %y the height of %arriers to entry &hich includes factors s

economies of scale, %rand loyalty, and capital re uirements determine ho& easy or difficult it is for competitors to enter an industry

% Threat of su%stitutes – factors such as s&itching costs and %uyer loyalty determine the degree tocustomers are li+ely to %uy a su%stitute product

c 7argaining po&er of %uyers – factors such as num%er of customers in the mar+et, customer informand the a$aila%ility of su%stitutes determine the amount of influence that %uyers ha$e in an industry

d 7argaining po&er of suppliers – factors such as the degree of supplier concentration and a$aila%ilisu%stitute inputs determine the amount of po&er that supplier ha$e o$er firms in the industrye #3isting ri$alry – factors such as industry gro&th rate, increasing or falling demand, and pro

differences determine ho& intense the competiti$e ri$alry &ill %e among firms in the industry!moderate"

1B> In a short essay, list and discuss the three competiti$e strategies, according to ;orter Include specific e3aof companies that pursue each of the three competiti$e strategies)ns&er a Cost leadership strategy – &hen an organization sets out to %e the lo&est cost producer in its indust

follo&ing a cost leadership strategy ) lo& cost leader aggressi$ely searches out efficiencies in produc

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mar+eting, and other areas of operation O$erhead is +ept to a minimum, and the firm does e$erythcan to cut costs For e3ample, (al Mart*s head uarters in 7enton$ille, )r+ansas, office furnishings sparse and dra% %ut functional )lthough lo& cost leaders don*t place a lot of emphasis on Dfril product or ser$ice %eing sold must %e percei$ed as compara%le in uality to that offered %y ri$als or %e accepta%le to %uyers #3amples of companies that ha$e used the lo& cost leader strategy incluMart, 9yundai, and .outh&est )irlines

% ifferentiation strategy – the company that see+s to offer uni ue products that are &idely $alucustomers is follo&ing a differentiation strategy .ources of differentiation might %e e3ceptionally

uality, e3traordinary ser$ice, inno$ati$e design, technological capa%ility, or an unusually positi$e %

image The +ey to this competiti$e strategy is that &hate$er product or ser$ice attri%ute is chosedifferentiating must set the firm apart from its competitors and %e significant enough to 6ustify a p premium that e3ceed the cost of differentiating ;ractically any successful product or ser$ice canidentified as an e3ample of the differentiation strategyL 2ordstrom*s !customer ser$ice": .ony !reputafor uality and inno$ati$e design": Coach hand%ags !desig

management ch. 1

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