1. A crisis is a high-probability but low-impact event that threatens the viability of an organization and is characterized by
ambiguity of cause, effect, and means of resolution, as well as by a belief that decisions must be made swiftly.
a.
True
b.
False
2. Advances in communications technology has diminished organizations’ attempts to control crisis communications.
a.
True
b.
False
True
Easy
p. 432
MGMT.LUSS.16.12-01 – LO: 12–01
Technologies
Conceptual
3. Crises come in many forms including succession crisis, product failures, human error disasters, and sexual harassment.
a.
True
b.
False
True
Easy
p. 430
MGMT.LUSS.16.12-01 – LO: 12–01
Conceptual
False
Easy
p. 430
MGMT.LUSS.16.12-01 – LO: 12–01
Conceptual
4. Effective crisis leadership is about having the foresight and proper pre-crisis planning for managing a crisis.
a.
True
b.
False
5. A pre-crisis plan is the best way to lessen the negative consequences of any crisis.
a.
True
b.
False
True
Easy
p. 433 – 434
MGMT.LUSS.16.12-03 – LO: 12–03
Conceptual
6. A pre-crisis plan is the first stage of any crisis management program.
a.
True
b.
False
True
Easy
p. 433
MGMT.LUSS.16.12-03 – LO: 12–03
7. Pre-crisis planning addresses three key questions that every organization should address when putting together a
comprehensive crisis management plan: (1) Do we have a crisis response team and who is on it? (2) What is our crisis
True
Easy
MGMT.LUSS.16.12-01 – LO: 12–01
Conceptual
plan of action? and (3) Do we have a risk assessment team and who is on it?
a.
True
b.
False
8. Crises are part of the regular work experience; therefore, leaders know what to expect and plan accordingly.
a.
True
b.
False
False
Easy
p. 433
MGMT.LUSS.16.12-02 – LO: 12–02
Conceptual
9. Organizations with early crisis identification systems and crisis management plans already in place before the
occurrence of a crisis are significantly better prepared to manage and survive a crisis event.
a.
True
b.
False
True
Easy
p. 433
MGMT.LUSS.16.12-02 – LO: 12–02
Conceptual
False
p. 434
MGMT.LUSS.16.12-03 – LO: 12–03
Conceptual
10. Acceptance of the frequent occurrence of low-probability, high-impact events makes planning for crises a routine,
easy process.
a.
True
b.
False
Moderate
p. 433
MGMT.LUSS.16.12-02 – LO: 12–02
Conceptual
11. During a crisis all information must come directly from the CEO; including communications with the media and other
outside groups.
a.
True
b.
False
False
Moderate
p. 435
MGMT.LUSS.16.12-03 – LO: 12–03
Conceptual
12. Your leader has appointed you to supervise the crisis risk assessment part of pre-crisis planning, and, therefore, your
first step in the five step process is to assess and rank risks.
a.
True
b.
False
False
Easy
p. 437
13. The five-step crisis risk assessment model is a scenario analysis and planning tool used in creating a crisis
management action plan.
a.
True
b.
False
True
Easy
p. 437
MGMT.LUSS.16.12-05 – LO: 12–05
Conceptual
14. In the five-step crisis risk assessment model, SWOT analysis comes into play as a tool in determining what resources
and capabilities are available or needed to better manage each crisis.
a.
True
b.
False
True
Moderate
p. 438
MGMT.LUSS.16.12-05 – LO: 12–05
Conceptual
15. The first step in the crisis risk assessment model is risk reduction.
a.
True
b.
False
False
Moderate
MGMT.LUSS.16.12-05 – LO: 12–05
Conceptual
16. SWOT analysis is only used in the risk identification step in the crisis risk assessment model.
a.
True
b.
False
False
Moderate
p. 437 – 438 and Exhibit 12.2
MGMT.LUSS.16.12-05 – LO: 12–05
Conceptual
17. It is generally believed that within minutes of becoming aware that a crisis situation may exist, company officials must
be prepared to issue an initial statement to the media and other key stakeholder groups.
a.
True
b.
False
True
Easy
p. 435
MGMT.LUSS.16.12-04 – LO: 12–04
Conceptual
18. Developing a bunker mentality is a recommended strategy for senior leaders to use when dealing with a crisis.
a.
True
b.
False
False
p. 437 and Exhibit 12.2
MGMT.LUSS.16.12-05 – LO: 12–05
19. When a crisis erupts, a rapid response is vital. The effective leader focuses on three key areas: goals, people, and
resources.
a.
True
b.
False
True
Moderate
p. 435
MGMT.LUSS.16.12-04 – LO: 12–04
Conceptual
20. A press release is a printed statement that describes how an organization is responding to a crisis and who is in charge.
a.
True
b.
False
True
Easy
p. 441
MGMT.LUSS.16.12-06 – LO: 12–06
Conceptual
21. A press kit is a package of information about a company, including names and pictures of its executives, a fact sheet,
and key milestones in the company’s history.
a.
True
b.
False
True
Moderate
p. 436
MGMT.LUSS.16.12-04 – LO: 12–04
Conceptual
22. In the aftermath of a crisis, it is recommended that top management form an internal crisis evaluation team to evaluate
the organization’s effectiveness in managing the crisis.
a.
True
b.
False
False
Moderate
p. 436
MGMT.LUSS.16.12-04 – LO: 12–04
Conceptual
23. A learning organization is more appropriate for a stable environment where change is slow and incremental.
a.
True
b.
False
False
Easy
p. 444
MGMT.LUSS.16.12-07 – LO: 12–07
Conceptual
24. A learning organization is one that is skilled at creating, acquiring, and transferring knowledge, and at modifying
behavior to reflect new knowledge and insights.
a.
True
b.
False
Easy
p. 441
MGMT.LUSS.16.12-06 – LO: 12–06
Conceptual
25. Learning organizations are constantly reinventing themselves which is seen as a distinctive capability for those who
do it exceptionally well.
a.
True
b.
False
True
Moderate
p. 444
MGMT.LUSS.16.12-07 – LO: 12–07
Conceptual
26. Explicit knowledge is the instinct and intuition that an experienced practitioner possesses.
a.
True
b.
False
False
Moderate
p. 445
MGMT.LUSS.16.12-07 – LO: 12–07
Conceptual
27. Organizational learning involves external and internal sources.
a.
True
True
Easy
p. 444
MGMT.LUSS.16.12-07 – LO: 12–07
Conceptual
b.
False
28. The traditional organization is based on the bureaucratic model that emphasizes a command-and-control structure,
decentralized decision making, highly formalized systems, specialized tasks, and an adaptive culture.
a.
True
b.
False
False
Moderate
p. 447
MGMT.LUSS.16.12-08 – LO: 12–08
Conceptual
29. Discontinuous change occurs when anticipated or expected changes bear no resemblance to the present or the past.
a.
True
b.
False
True
Easy
p. 446
MGMT.LUSS.16.12-08 – LO: 12–08
30. The traditional organization fosters competition and less collaboration among individuals.
True
Easy
p. 445
MGMT.LUSS.16.12-07 – LO: 12–07
Conceptual
a.
True
b.
False
31. The mindset of leaders in a learning organization is that there is a “right way” to do things.
a.
True
b.
False
False
Moderate
p. 447
MGMT.LUSS.16.12-08 – LO: 12–08
Conceptual
32. The learning organization embraces the idea that people will learn if encouraged to be creative, to experiment, and to
reflect on their experiences.
a.
True
b.
False
True
Easy
p. 448
MGMT.LUSS.16.12-08 – LO: 12–08
Conceptual
True
Easy
p. 447
MGMT.LUSS.16.12-08 – LO: 12–08
Conceptual
33. As related to organizational culture, researchers are finding that the higher the level of learning and knowledge
acquisition, the greater the level of financial performance, but the lower the level of nonfinancial performance.
a.
True
b.
False
34. To encourage innovation and creativity, learning organizations centralize responsibility and authority to upper-level
management.
a.
True
b.
False
False
Easy
p. 447
MGMT.LUSS.16.12-08 – LO: 12–08
Conceptual
35. Leaders in learning organizations face a single challenge of maintaining efficient operations.
a.
True
b.
False
False
Easy
p. 449
MGMT.LUSS.16.12-09 – LO: 12–09
Conceptual
False
Moderate
p. 449
MGMT.LUSS.16.12-08 – LO: 12–08
Conceptual
36. Leaders in learning organizations face the dual challenge of maintaining efficient operations and creating a flexible
and adaptive organization at the same time.
a.
True
b.
False
Easy
p. 449
MGMT.LUSS.16.12-09 – LO: 12–09
Conceptual
37. The purpose of using benchmarking is to imitate competitors’ best practices which leads to a competitive advantage
for a company.
a.
True
b.
False
False
Moderate
p, 450
MGMT.LUSS.16.12-09 – LO: 12–09
Conceptual
38. Encouraging systems thinking in a learning organization means that boundaries are clearly defined within the
organization and with other partners.
a.
True
b.
False
False
Moderate
p. 450
MGMT.LUSS.16.12-09 – LO: 12–09
39. Providing opportunities for employees to solve problems increases management’s confidence in employees’ ability to
accomplish organizational goals.
a.
True
b.
False
False
Moderate
p, 450
MGMT.LUSS.16.12-09 – LO: 12–09
Conceptual
40. Creative thinking can occur at the individual, group, and organizational level.
a.
True
b.
False
True
Easy
p, 450
MGMT.LUSS.16.12-09 – LO: 12–09
Conceptual
41. It is important for leaders to narrow the lens through which employees see the organization and the world around
them, focusing energy inward.
a.
True
b.
False
False
Moderate
p, 451
Conceptual
42. Encouraging systems thinking is a guideline for enhancing organizational learning.
a.
True
b.
False
True
Easy
p. 449, Exhibit 12.5
MGMT.LUSS.16.12-08 – LO: 12–08
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
43. An organization that claims to support experimentation should not then turn around and punish employees for taking
risks that are within accepted company guidelines.
a.
True
b.
False
True
Easy
p. 450
MGMT.LUSS.16.12-09 – LO: 12–09
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
44. In planning for a crisis, the leader focuses on five integrated tasks. These five tasks point to the essential competencies
of crisis leaders, which include all of the following EXCEPT:
a.
craft a vision.
b.
communicate.
c.
benchmark.
d.
manage people.
c
MGMT.LUSS.16.12-09 – LO: 12–09
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
Conceptual
45. In planning for a crisis, the leader has to focus on five integrated tasks. These tasks include all of the following
EXCEPT:
a.
formulate an overarching vision of crisis management for the organization.
b.
coordinate the creation of a crisis management plan.
c.
establish strategic goals and program objectives for crisis management.
d.
communicate regular updates on the planning process to all employees.
p. 431
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
BLOOMS: Knowledge
46. Due to advances in communications technologies, all of the following statements concerning an organization’s ability
to control crisis communications are now true, except for one. Which statement is NOT true?
a.
During a crisis, the company’s Facebook page delivers all needed communication to stakeholders.
b.
A company many have only minutes to contain a crisis.
c.
Stakeholders may have more information about an ongoing crisis than the organization.
d.
A crisis is instantly visible and viral with the potential to inflict terminal damage on the affected organization.
p. 432
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
BLOOMS: Knowledge
47. Though suffering some loss is almost unavoidable having a crisis plan in the event of an actual crisis has several
p. 431
United States – BUSPROG: Analytic
BLOOMS: Knowledge
benefits, including all of the following EXCEPT:
a.
b.
c.
d.
48. The best way to mitigate the negative consequences of any crisis is by:
a.
top management support.
b.
a pre-crisis plan.
c.
a capable and supportive staff of employees.
d.
having updated communication capabilities.
p. 433 – 434
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
BLOOMS: Knowledge
49. Which of the following is NOT one of the three key questions pre-crisis planning addresses?
a.
Do we have a crisis response team and who is on it?
b.
What is our crisis plan of action?
c.
Who is the first person called in the event of a crisis?
d.
Do we have all the necessary resources in place?
p. 434
United States – BUSPROG: Analytic
p. 433
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
BLOOMS: Knowledge
50. Which of the following is NOT true when developing a crisis plan of action?
a.
Planning involves imagining the worst possible scenarios and their impact on stakeholders.
b.
The team prepares a structured crisis response evaluation for use after the crisis.
c.
The plan must include as many potential emergency situations as possible.
d.
The team assesses the risk of potential events and evaluates their possible ramifications.
p. 434 and Exhibit 12.2
United States – BUSPROG: Analytic
and abilities
AACSB: Analytic – Analytic skills
BLOOMS: Knowledge
51. Which of the following statements concerning the importance of having a standing crisis response team is NOT true?
a.
The best crisis response team is compiled of objective third-party individuals.
b.
A crisis response team increases an organization’s ability to respond to a crisis in a timely and effective
manner.
c.
In the event of a crisis, a leader wants a team that has trained and worked together.
d.
Diversity in the makeup of the team increases diverse input that contributes to better decisions.
p. 434
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
BLOOMS: Knowledge
52. An aspect of pre-crisis planning is deciding on the appropriate communications strategy when a crisis hits. Which of
the following statements concerning crisis communication is NOT true?
a.
During pre-crisis planning, decisions on who will take charge of news conferences and who will
handle ongoing daily communications is finalized.
b.
A well-coordinated crisis communication plan helps avoid mixed messages.
c.
Problems with communication during a crisis affect crisis response effectiveness.
d.
The pre-crisis plan is put into action before the actual event of a crisis.
and abilities
AACSB: Analytic – Analytic skills
BLOOMS: Knowledge
53. Which of the following is NOT one of the steps in the crisis risk assessment model?
a.
Risk reduction.
b.
Risk identification.
c.
Crisis management.
d.
Risk analysis.
Moderate
p. 437
MGMT.LUSS.16.12-05 – LO: 12–05
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
54. By the end of the risk identification step of the crisis risk assessment model, team members will have created
a ______________.
a.
ranking of scenarios
b.
risk chart
c.
simulation for chosen scenarios
d.
strategy
Moderate
p. 437
MGMT.LUSS.16.12-05 – LO: 12–05
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
Moderate
p. 435
MGMT.LUSS.16.12-03 – LO: 12–03
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
55. Ultimately, the best gauge to determine an organization’s readiness to respond to a crisis is how it rates according to
five factors. Which of the following is NOT one of those factors?
a.
Awareness and access to crisis management information.
b.
Readiness for an effective and timely response.
c.
Effective communication plan in place
d.
Availability of stockpiled resources.
56. During the first step of the crisis risk assessment model the team brainstorms “what–if” scenarios that focus on:
a.
identifying realistic incidents under various crisis situations.
b.
ranking using criteria such as loss of life or injuries.
c.
identifying available resources needed.
d.
formulating strategies.
a
Moderate
p. 437
MGMT.LUSS.16.12-05 – LO: 12–05
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
57. Within _________ of becoming aware that a crisis situation may exist, company officials must be prepared to issue an
initial statement to the media and other key stakeholders.
a.
24 hours
b.
minutes
c.
an hour
d.
48 hours
Easy
p. 435
MGMT.LUSS.16.12-04 – LO: 12–04
United States – BUSPROG: Analytic
Moderate
p. 439
MGMT.LUSS.16.12-05 – LO: 12–05
United States – BUSPROG: Analytic
and abilities
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge