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A state motor vehicles agency that is interested in serving the public might choose to measure ________. A) total revenue rather than customer wait time B) total customers rather than total revenue C) customer wait time rather than total customers […]

Which of the following is the best example of a company being socially responsive? A) meeting hazardous materials standards B) giving Christmas bonuses to worthy employees C) displaying “think green” posters D) building a community day-care center Why might a […]

Having leadership traits alone is not useful for identifying who is likely to be a leader. Fiedler’s contingency model focused on having employees describe their ideal coworker. Answer: FALSE Explanation: Fiedler’s model focused on having employees identify their least preferred […]

The reality is that managers are more unethical than in the past. The most popular and effective employee appraisal device is the graphic rating scale approach. Answer: FALSE Explanation: The graphic rating scale has evaluators create graphs that rate employees […]

Traditional career development in which an individual advances through the ranks of a single organization is more popular than ever. A successful visionary leader “jump-starts” the future. Answer: TRUE Explanation: Successful visionary leaders create a powerful image of a possible […]

Maximizing value means a decision will have the best possible outcome for the parties involved. Situational leadership theory (SLT) states that an R1 worker who is unable and unwilling to perform a task responds best to a telling leadership style. […]

Robert Owen tried to develop ________ to improve the workplace conditions in factories. A) managerial scheduling methods B) what he termed the idealistic workplace C) general administrative theory D) industrial psychology When a top manager decides to hire an individual […]

Today’s economic climate can be compared to a college class that ________. A) focuses on only one topic all semester B) focuses on several topics during the semester C) may last 20 minutes or 3 hours D) lasts exactly 1 […]

An organization’s founder has little influence on its culture. The first step in the strategic management process is analyzing the external environment. Answer: FALSE Explanation: The first step in the strategic management process is for the organization to identify its […]

Most job training does not take place on the job. This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. From Bigg’s point of […]

In McGregor’s theory of motivation, managers with a Theory Y view of life think people need to be given the freedom to make their own choices. Control is the process of monitoring and evaluating activities to ensure that they are […]

Stress can arise from an opportunity. Management has an impact on all businesses, but there are almost no examples of businesses that have failed because of poor management. Answer: FALSE Explanation: Examples of businesses that have filed for bankruptcy due […]

Because profit, or the “bottom line,” is not the measure of success for not-for-profit organizations, managers of charitable organizations do not have to concern themselves with the financial aspects of their organizations. The classic “entrepreneurial personality” is a person who […]

In value chain management, activities are eliminated from the organizational process if they do not add value to the process. Today, most managers see work specialization as a source of ever-increasing productivity. Answer: FALSE Explanation: Today, managers see a limit […]

Unity of command means that all employees should answer to only one superior. Negative reinforcement penalizes an individual for an undesired behavior. Answer: FALSE Explanation: Penalizing an individual for undesired behavior is called punishment, not negative reinforcement. Negative reinforcement is […]

Which of the following is a key difference between managerial and nonmanagerial employees? A) Managerial employees receive higher pay compensation. B) Nonmanagerial employees have less formal education. C) Nonmanagerial employees do not oversee the work of others. D) Managerial employees […]

Herzberg has had the greatest influence on which of the following? A) employee pay scales B) work conditions C) how managers design jobs D) labor-management relations Which communication sequence is correct? A) sender decoding channel encoding receiver B) sender channel […]

Decisions, Decisions (Scenario) Sondra needed help. Her insurance company’s rapid growth was necessitating making some IT changes, but what changes? Should they modify the servers that they currently used or purchase an entirely new system? Sondra was confused and needed […]

The best way to measure the effectiveness of job training is to find out how stressful the process was for trainees. An advantage of telecommuting is that companies do not necessarily have to be located near their workforce. Answer: TRUE […]

Equity theory has three referent categories to which workers compare themselves: persons, systems, and self. Controlling provides a critical link back to planning that compares actual outcomes to planned outcomes. Answer: TRUE Explanation: Without the assessment that takes place during […]

Norming is a stage of group development that occurs when ________. A) the group struggles for leadership B) the group defines its purpose C) the group develops cohesiveness D) the group defines its goals This best describes the commitment a […]

Today’s workplaces provide a wide range of scheduling options and benefits that allow employees more flexibility at work and allow them to better balance or integrate their work and personal lives. Success in communication always involves reasoning skills. Answer: TRUE […]

A job description states the minimum qualifications a person needs to perform a job successfully. Operant behavior deals only with learned behavior. Answer: TRUE Explanation: Operant behavior does not deal with innate or reflexive behavior. An example of changes in […]

It is a wise idea to cultivate job skills that are rare and useful in the marketplace. Changing jobs is a sign of a troubled career. Answer: FALSE Explanation: In today’s fast-paced job market, staying in the same job often […]

Equity theory holds that employees who feel underpaid will decrease their level of effort and performance in response to feelings of inequity. Strong cultures make a manager’s job easy because all organizational policies, practices, and traditions are provided in writing […]

A manager is considering purchasing new computers for her department. The manager spends time assessing the computers her department now has. Which stage of the decision-making process is she going through? A) identification of a problem B) identification of decision […]

Verbal intonation can be a part of written communication. When hiring, entrepreneurs typically are much less concerned with matching a candidate’s values to the organization’s organizational culture than traditional HRM managers. Answer: FALSE Explanation: The opposite is true. Entrepreneurs are […]

Which of the following is NOT a reason why managers often resort to using heuristics? A) They seem to eliminate complexity. B) They seem to eliminate ambiguity. C) They save time. D) They thoroughly explore all alternatives. Which of the […]

You would expect an entrepreneur who has a grand vision for the future to be more of a risk taker than an entrepreneur who is using his or her venture simply as a source of income. The behavioral approach to […]

The decision of an organization to bring in new equipment from the outside is an example of an external force that creates a need for organizational change. A society with high uncertainty avoidance relies on rules and trusts its social […]

Each link in a value chain adds an equal amount of value to a product. Two major advantages of electronic meetings are anonymity and honesty. Answer: TRUE Explanation: Electronic meetings allow participants to type in comments without needing to identify […]

One reason that empowerment is important in today’s business climate is that managers today tend to have smaller spans of control than managers of the past. Selling an entrepreneurial venture is always a sign of failure. Answer: FALSE Explanation: Exiting […]

________ is the unique combination of psychological traits that describe a person. A) Character B) Intelligence C) Behavior D) Personality This regret matrix gives potential dollar values in thousands for strategies S1, S2, S3, and S4 for Al’s Fish Fry […]

Recruitment (Scenario) Keena’s company was expanding. After a period of downsizing, the company had decided to increase organizational profitability by gaining market share, which meant a need for more people. As assistant manager of human resources, she was in the […]

The Ohio State studies suggested that leaders who were high in structure and low in consideration were most successful. A six-month plan qualifies as a short-term plan. Answer: TRUE Explanation: Short-term plans are defined as plans of one year or […]

The Myers-Briggs Type Indicator® test can identify thousands of different basic personality types. In Lewin’s view, the only way to effect change is to increase the driving forces that direct change away from the status quo. Answer: FALSE Explanation: Decreasing […]

We all have a vested interest in understanding the way organizations are managed because ________. A) we all stand to gain financially from organizational profits B) we interact with organizations every day of our lives C) we all depend on […]

Situational leadership theory (SLT) states that an R3 worker who is able but unwilling to perform a task responds best to a selling leadership style. Reducing the value of VC in a break-even analysis means that the business needs to […]

Neil Huffman Auto group claims that every dollar it spends on training ultimately results in $230 in productivity gains. Vroom and Yetton’s leader-participation model suggests that leadership research should focus on the situation rather than the leader. Answer: TRUE Explanation: […]

Prior to the Hawthorne studies, managers paid little attention to the role of ________ in making decisions. A) productivity B) human behavior C) efficiency D) cost control This is the goal of employment planning. A) selecting competent employees B) obtaining […]

McGregor holds the opinion that managers are less successful when they adopt a Theory Y view of human nature. Of the five dimensions that make up the concept of trust, loyalty seems to be the most critical. Answer: FALSE Explanation: […]

Providing motivation is part of the controlling function of management. Team leadership is becoming less important in today’s world because teams don’t need leaders. Answer: FALSE Explanation: All teams need leaders. If anything, team leadership is becoming more important in […]

Creative solutions to problems are valued because they are new and different from traditional solutions. Telecommuting satisfies the needs of employees to interact socially. Answer: FALSE Explanation: A disadvantage of telecommuting is that many workers need the interaction of the […]

An example of a change in structure is an organization becoming more decentralized. In different countries, the most universal aspects of leadership seem to be elements of transactional leadership. Answer: FALSE Explanation: Transformational, rather than transactional, elements of leadership seem […]

According to Herzberg, in order to provide employees with job satisfaction, managers should concentrate on ________. A) salary and status B) working conditions C) achievement and recognition D) security The Retreat (Scenario) The first-line managers of ELH Inc. were sent […]

Body language and facial expressions are the only forms of nonverbal communication. When they first start out, most small entrepreneurial ventures have a very informal organizational structure. Answer: TRUE Explanation: In many cases, there is no real structure other than […]

During the third step of the planning and organizing phase of an entrepreneurial venture, an entrepreneur ________. A) selects an organizational design B) creates a business plan C) states a mission D) selects a legal business organization form A certain […]

Managers should especially try to avoid conflict during the storming stage of group development. In general, upper-level managers focus on tactical or operational planning. Answer: FALSE Explanation: Upper-level managers usually focus on strategic plans, while lower-level managers take care of […]

A sneaker company creating its own stores where it sells only its own brand is an example of which of the following? A) forward vertical integration B) backward horizontal integration C) forward horizontal integration D) reverse vertical integration In an […]

Attitudes are evaluative statements concerning objects, people, or events. The contingency approach to management states that there is a single best way to manage all organizations. Answer: FALSE Explanation: The contingency approach says that there is no single approach that […]

Technical skills might include ________. A) excellent verbal skills B) proficiency in computer programming C) exceptional writing ability D) decision-making ability Mid-level managers in a country with high power distance are ________ than managers from a low power distance country. […]

A new cell phone battery doubles battery life but also increases the cost of the phone. This battery adds ________. A) no value to the phone since it increases the cost B) value to the phone only if the cost […]

A single business cannot experience both underperformance and overperformance at the same time. Education is a good way to overcome resistance to change due to misinformation. Answer: TRUE Explanation: When misinformation or poor communication causes employees to resist change, the […]

Open-book management programs motivate by giving employees a greater sense of ownership in the company. An advantage of group decisions is that they increase the perception of the legitimacy of the solution. Answer: TRUE Explanation: When decisions that affect many […]

A diversification strategy focuses on a company becoming its own supplier of inputs. Customers played a role in IKEA’s success by being willing to pay higher prices for high-quality furniture. Answer: FALSE Explanation: IKEA customers were not willing to pay […]

Organizational change can be any alteration in an organization’s people, structure, or technology. Emotional intelligence and academic intelligence are virtually identical. Answer: FALSE Explanation: Though the same individual can exhibit both emotional and academic intelligence, the two metrics are very […]

MBO programs usually are successful largely because they ________. A) give employees a sense of ownership of goals B) free managers from the responsibility of setting goals C) give managers a sense of ownership of goals D) free employees from […]

How do global supply chains resemble biological organisms? A) Global supply chains are highly resilient in many ways, yet show marked vulnerability to seemingly small events. B) Global supply chains are highly resilient in many ways, yet they show a […]

A command-and-control leadership style works best with an entrepreneurial organization that is organized in teams. Professionals are best motivated by extra pay and promotion within the organization. Answer: FALSE Explanation: Most professionals are fairly well paid and not terribly interested […]

Research shows that there is a fairly strong correlation between high satisfaction and high productivity. Firewalls, data backup, and encryption help prevent security breaches in organizations. Answer: TRUE Explanation: These measures can prevent ordinary breaches for the most part. In […]

The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy. If the economy is weak, the shop is likely to make 60 percent of a $25,000 profit, or $15,000. In Mintzberg’s view, […]

Customer service cannot be considered a strategic weapon for an organization. A transactional leadership style is not related to a transformational style. Answer: FALSE Explanation: If done well, a transactional style can evolve into a transformational style, so the two […]

The more uncertain a situation is, the more ________ plans must be. A) unspecific B) long term C) flexible D) short term The most popular OD efforts involve cooperation and these kinds of activities. A) individual interactions B) group interactions […]

Organizational culture largely determines how much risk members of an organization will take. The ability to control one’s own emotions is an important component in emotional intelligence. Answer: TRUE Explanation: Controlling one’s emotions and impulses is termed self-management. A selection […]

In the JCM, autonomy and feedback are not core dimensions for a job. A mission statement for a kayak manufacturer might be as follows: To make the highest-quality kayaks and sell them at a competitive price. Answer: TRUE Explanation: A […]

Some messages do not need to be converted to symbolic forms to be sent. Performance-simulation tests are thought to be one of the best methods for evaluating job applicants in use today. Answer: TRUE Explanation: Performance-simulation tests assess applicants by […]

One major way that an organization can protect itself against sexual harassment cases is to make sure that all employees are well educated on the topic. Groups tend to be more efficient and less effective than individual decision making. Answer: […]

In the integrated model for motivation as shown in the chapter reading, high achievers circumvent the entire sequence of steps for motivation because ________. A) they are motivated by the organization’s assessment of their performance B) they are internally motivated, […]

A corporate strategy may be a growth strategy, a stability strategy, or a renewal strategy. Pay-for-performance programs pay employees for their time rather than for their output. Answer: FALSE Explanation: Pay-for-performance includes paying by the piece or paying for productivity […]

Productivity is not important to value chain management. The classical view of organizational social responsibility is that management’s only social responsibility is to maximize profits. Answer: TRUE Explanation: The classical view is hard to argue with. If a profit-making organization’s […]

Of the following choices, this is the most common reason for companies firing employees. A) misuse of office phones B) inappropriate computer use C) watching online video D) leaking company secrets Linden State University (Scenario) Marta is a dean at […]

In a matrix structure, a group member will typically report to ________. A) a project manager only B) both a project manager and functional department head C) a functional department head only D) Group members are fully autonomous in a […]

A manager would most likely be interested in employees’ attitudes about which of the following? A) family responsibility B) personal responsibility C) job satisfaction D) past jobs A disadvantage of a written essay for employee appraisal is that it tends […]

Almost all managerial tasks involve ________. A) decision making B) technical skills C) long-term planning D) superb political skills Which three conditions do decision makers face? A) certainty, risk, uncertainty B) certainty, uncertainty, confidence C) risk, high risk, low risk […]

Some organizational tasks are better done individually than in a team or group. Multinational corporations maintain significant operations in two or more countries simultaneously. Answer: TRUE Explanation: A multinational corporation comes in three different forms – the multidomestic corporation, the […]

Who was most likely to have a job that was free of discrimination? A) a white person in a wheelchair in 1997 B) an African American person in 1962 C) an Asian American person in a wheelchair in 1989 D) […]

Individuals tend to attribute their own successes to external factors. Changes in the environment that can affect a career include negative things, such as downsizing, only. Answer: FALSE Explanation: Changes in the environment can be negative, such as downsizing, but […]

Capabilities are “what” an organization has; resources are “how” it uses what it has. Organizational design is the process in which managers change or develop an organization’s structure. Answer: TRUE Explanation: By definition, organizational design requires a manager to develop […]

Members of a company sharing efficient shortcuts in a complex computer software program is an example of knowledge management. The problem with many problem-solving teams is that they don’t have the authority to act on their decisions. Answer: TRUE Explanation: […]

A conclusion that engineers from the Hawthorne studies made was that people behave ________ when they are being observed. A) differently B) consistently C) naturally D) comfortably How often do managers typically use intuitive decision making? A) 100 percent of […]

Deming’s total quality management system largely ignored the needs of customers. Motivation is a drive that some people have and others don’t have. Answer: FALSE Explanation: All people have motivation in different amounts for different things. A person may be […]

Formal groups tend to form around friendships and common interests. The goal of operations management is to manage the process of turning labor and raw materials into goods and services of some type. Answer: TRUE Explanation: Operations management is the […]

The control process is a two-step process that measures and compares. A drawback to instant messaging is that it creates security problems. Answer: TRUE Explanation: Having multiple users all logged onto a system at once-which is required for instant messaging-can […]

All criteria are equally important in the decision-making process. Intuitive decision making is systematic, logical, and orderly. Answer: FALSE Explanation: Intuitive decisions may be perfectly sound, but they are not arrived at through a systematic analysis of alternatives. Instead, intuitive […]

Disagreeable team members rarely decrease team performance. To find the planned duration of a project on a Gantt chart, simply look at the width of the bar that represents actual progress. Answer: FALSE Explanation: The width of the bar that […]

Gen Y individuals tend to be comfortable with new types of electronic technology. Direct supervision is the best-known form of concurrent control. Answer: TRUE Explanation: When managers directly watch over what workers are doing and make corrections in real time […]

Verbal intonation refers to how loud the speaker speaks. Innovation and super-high quality are typically the keys to a cost-leadership strategy. Answer: FALSE Explanation: Efficiency, rather than innovation or quality, is the key to a cost-leadership strategy in which a […]

In traditional goal setting, as they work their way from top management to employees, goals are likely to ________. A) become more clear B) be more rigorously followed C) be unchanged D) become less clear A major part of the […]

Neural networks outperform expert systems in uncovering ________. A) credit card fraud B) false positives for pregnancy C) potential credit card customers D) credit problems in bank mortgages The first three steps of the strategic management process involve ________ strategies. […]

A company with a stability strategy will plan to dramatically increase market share in a highly competitive market. Fiedler concluded that task-oriented leaders tended to perform better in favorable situations and worse in unfavorable situations. Answer: FALSE Explanation: The statement […]

Fixed costs for a product are $60,000. The product itself sells for $4.00 and it costs $1.00 to make each product. How will the break-even point for the product change if the variable cost per unit goes up to $1.50? […]

Horizontal boundaries separate employees by the specialization of their job. In a realistic job preview (RJP), an applicant might be told that the likelihood for promotion for the job he is applying for is slim. Answer: TRUE Explanation: An RJP […]

This regret matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. The maximum regrets for this table are S1 = 5, S2 = 9, S3 […]

Implementing a procedure requires more judgment and interpretation than implementing a policy. French organizations have a very different view of status than American organizations. Answer: TRUE Explanation: The French see status as the sum of such factors as education, experience, […]

The best way to define the term career is as a ________. A) series of tasks B) series of jobs or work positions over a period of a few years C) series of jobs or work positions over a period […]

The study of economics is useful only to top managers. Today’s job seekers identify quality child care as an important job benefit. Answer: TRUE Explanation: Benefits that job seekers value include health care, child care, retirement, and domestic partner benefits. […]

Which term is most closely associated with transformational leaders? A) charming B) efficient C) far-seeing D) inspiring Which of the following might be a competitive edge for a person applying for a firefighting job? A) athletic ability B) exceptional writing […]

In order to be considered a manager, an individual must direct or oversee the work of others. Distinctiveness refers to whether an individual displays a behavior in many situations or whether it’s particular to one situation. Answer: TRUE Explanation: High […]

Factories in the Industrial Revolution needed to forecast demand to make sure that workers were paid fairly. Personal observation as a form of control measurement requires little time. Answer: FALSE Explanation: Personal observation, in fact, requires a great deal of […]

A team’s upholder-maintainer would likely submit the team’s request for a large increase in resources to top management. Budgets can be effective tools for both planning and controlling. Answer: TRUE Explanation: Budgets are highly effective planning tools. However, once created, […]

An aggressive new competitor in the marketplace is an external force that creates a need for organizational change that companies frequently face today. The primary issue that motivated Taylor to create a more scientific approach to management was worker satisfaction. […]

The “calm waters” metaphor imagines the organization as a large ship crossing a calm sea. ________ can improve employee performance by sharing the financial circumstances of the organization with the employee. A) Pay-for-performance B) Open-book management C) Equity management D) […]

Another term for queuing theory is “waiting line” theory. A leader is someone who has managerial authority and can influence others. Answer: TRUE Explanation: A leader needs to be someone who has both the authority to make others follow his […]

Motivation theories do not work well in U.S. organizations because of the emphasis Americans place on individualism and achievement. A small business manager in many ways combines the roles of top manager and first-line manager in a large business. Answer: […]

A heuristic can simplify the decision-making process. In a ready-fire-aim culture, managers will endlessly analyze a situation before taking action. Answer: FALSE Explanation: Managers who spend too much time analyzing are members of a ready-aim-fire culture, not a ready-fire-aim culture. […]

The 10,000 hour rule supports the idea that success is mostly hard work. Nonverbal communication is a minor part of the communication that takes place during a conversation. Answer: FALSE Explanation: Studies show that during a face-to-face conversation, considerably more […]

The business world cannot count on regulation to reform the economy. One argument against businesses championing social responsibility issues is that being socially responsible can harm an organization’s public image. Answer: FALSE Explanation: In today’s world, rather than harm an […]

The development or identification of objectives or standards must precede the control process. This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. From […]

Technical skills involve a manager’s ability to think logically and effectively about abstract situations. A channel is an actual physical product. Answer: FALSE Explanation: A channel is the medium through which a message travels, not a physical product. The medium […]

Licensing and franchising typically follow the export-import phase of globalization. Robert House’s path-goal theory maintains that an effective leader clears the path for a follower to the follower’s goal. Answer: TRUE Explanation: The “path-goal” in path-goal theory refers to removing […]

If you believe that you control your own destiny, then your personality would be described as having a(n) ________. A) external locus of control B) high Mach score C) low Mach score D) internal locus of control Most managers feel […]

The thing that makes your product special is known as your ________. A) assets B) destruction device C) competitive advantage D) competitive strength Evidence that managers in the fifteenth-century Venetian shipbuilding facility were interested in job satisfaction is best shown […]

Which role does uncertainty typically play in how managers function? A) Uncertainty limits the amount of information that is available. B) Uncertainty increases the amount of information that is available. C) Uncertainty improves the quality of information that is available. […]

In Herzberg’s view, removing a hygiene factor makes a person less dissatisfied with his or her job. The term career applies only to high-level professionals such as designers or physicians, not laborers. Answer: FALSE Explanation: All workers have a career, […]