135. The __________ is a method for group decision making that ensures each member’s contributions are
independent and are considered and discussed by the group.
a.
nominal dialectical inquiry
b.
sequential presentation
c.
open door technique
d.
stepladder technique
e.
incremental approach
136. Which of the following statements about the stepladder technique is true?
a.
When used with rational decision making, the stepladder technique improves individual
decision-making capabilities.
b.
The stepladder technique begins with discussion between two group members, who share
their thoughts, ideas, and recommendations before jointly making a tentative decision.
c.
Another name for the stepladder technique is the dialectical inquiry method of goal
setting.
d.
The stepladder technique eliminates bounded rationality from decision making.
e.
The stepladder technique is ineffective in group decision making because it inevitably
results in groupthink.
137. Which of the following resources is most important to the success of the stepladder technique of
decision making?
a.
production resources
b.
atmosphere
c.
time
d.
information
e.
labor
138. According to the What Really Works, “Devil’s Advocacy, Dialectical Inquiry, and Considering
Negative Consequences,”
a.
most of the decisions managers face are well-structured problems that recur frequently
under conditions of certainty
b.
most of the decisions managers face are less than optimal due to groupthink
c.
most of the decisions managers face occur under conditions of risk
d.
very few of the decisions managers face are well-structured problems that recur frequently
under conditions of certainty
e.
most decisions are made optimally if both the devil’s advocacy and dialectical inquiry
techniques are used
139. Which of the following is NOT one of the rules for effective brainstorming?
a.
The more ideas, the better.
b.
Select an open-minded group leader.
c.
All ideas are acceptable.
d.
Criticism is not allowed.
e.
Use other members’ ideas to come up with more ideas.
140. Electronic brainstorming, in which group members use computers to communicate and generate
alternative solutions, overcomes the disadvantages associated with:
a.
dialectical inquiry
b.
the nominal group technique
c.
the Delphi technique
d.
face-to-face brainstorming
e.
synergistic inquiry
141. Which of the following is the most effective method for generating alternatives?
a.
individual analysis
b.
Delphi technique
c.
face-to-face brainstorming
d.
electronic brainstorming
e.
evaluation comprehension
142. Which of the following is a disadvantage of face–to-face brainstorming that is overcome by electronic
brainstorming?
a.
assimilation blocking
b.
production blocking
c.
delegation errors
d.
group norm evaluation
e.
negative valence
Krispy Kreme
Krispy Kreme is a relatively small doughnut seller. It has only 295 stores while Dunkin Doughnuts
has over 3,600 outlets in the United States and Canada. In spite of its size, Krispy Kreme has been
described by many as “the hottest brand in America.” The company’s success in an environment that
has made success difficult for many food operations is due in large part to the long-term vision of its
top management and its establishment and achievement of S.M.A.R.T. goals. The company
originated in Winston-Salem, North Carolina, in the mid-1930s when Vernon Rudolph bought a secret
recipe for yeast doughnuts from a French pastry cook. Rudolph ran the company until his death in
1973 when he died without naming a successor, which caused the company problems for the next
decade.
143. Refer to Krispy Kreme. How does Krispy Kreme benefit from planning?
a.
Planning makes persistence unnecessary.
b.
Planning allows managers to direct their employees to “do their best.”
c.
Planning gives direction to managers and employees.
d.
Planning eliminates the need for task strategies.
e.
Planning would provide all of these benefits to Krispy Kreme.
144. Refer to Krispy Kreme. Krispy Kreme’s goal to open six new Krispy Kreme stores by 2008 in British
Columbia where it already has a well-established reputation would be an example of a S.M.A.R.T.
goal because it is:
a.
specific, marketable, and temporal
b.
specific, measurable, attainable, realistic, and timely
c.
service-oriented, manageable, achievable, and time-oriented
d.
standardized, measurable, actionable, response-driven, and temporal
e.
selective, marketable, achievable, and real-time-oriented
145. Refer to Krispy Kreme. The company’s goal to open six new Krispy Kreme stores by 2008 in British
Columbia where it already has a well-established reputation would be an example of a(n) __________
goal.
a.
distal
b.
temporal
c.
adjacent
d.
proximal
e.
advocacy
146. Refer to Krispy Kreme. The company’s goal to never reveal its secret recipe to anyone outside the
company is an example of a(n) __________ goal.
a.
distal
b.
temporal
c.
adjacent
d.
proximal
e.
advocacy
147. Refer to Krispy Kreme. Which of the following would be an example of an operational plan for Krispy
Kreme?
a.
to open a new plant for making doughnut mix outside the United States
b.
to change the color of the “walking KK” logo of the company
c.
to turn on the HOT DOUGHNUTS NOW sign whenever fresh doughnuts come off the
line
d.
to hire a new human relations vice president to oversee all of the company’s operations
e.
to modify the doughnut mix recipe so that less expensive ingredients can be used
Diebold
Diebold (pronounced DEE-bold) is a $3 billion company whose core products are ATMs, bank vaults,
and security systems. Until the 1990s, it was a global market leader. Then, its rival NCR surpassed it
in sales. As a result, Diebold began acquiring suppliers around the world. One company it purchased
was a Brazilian manufacturer of ATMs. Around this time the Brazilian government was looking to
fully automate its voting system, and Diebold got the contract through its Brazilian company. The
Brazilian presidential election went off without a hitch with Diebold machines. Emboldened by this
success, Diebold decided to enter the voting machine market. The U.S. seemed a likely market,
especially after the passage of the Help America Vote Act when local governments were told to
replace punch-card voting machines with touch-screen machines. The big contracts meant big
problems for Diebold. Orders were lost, manufacturing fell way behind schedule, and its technical staff
was overwhelmed by the demand. In addition, allegations of the potential for voter fraud filled the
Internet media and Diebold was labeled “an enemy of democracy.”
148. Refer to Diebold. The decision to purchase global suppliers in order to defend against eroding market
share was made using which marketing function?
a.
goal-setting
b.
planning
c.
strategizing
d.
benchmarking
e.
keystoning
149. Refer to Diebold. According to the S.M.A.R.T. guidelines, the goal of becoming the leader in the
manufacturer of touch-screen voting machines was not:
a.
service-oriented because it was based on assumptions
b.
rational because the company did not have the technical staff needed
c.
attainable because of a lack of resources
d.
timely because of the passage of the Help America Vote Act
e.
measurable because of the inability to predict need
150. Refer to Diebold. If Diebold had paid more attention to the third step of planning and developed
effective _____, orders would not have been lost, manufacturing would not have fallen behind
schedules, and its technical staff would not have been overwhelmed.
a.
short-term strategies
b.
proximal goals
c.
action plans
d.
action plans
e.
subordinate objectives
151. Refer to Diebold. What kind of goal did Diebold set when it determined to retake its place as the
global market leader for ATMs, bank vaults, and security systems?
a.
operational
b.
tactical
c.
proximal
d.
benchmarked
e.
distal
152. Refer to Diebold. On the top of the Diebold’s home Web page, it reads, “We won’t rest until we
measurably improve the extent to which our customers’ customers are delighted with our self-service
and security solutions; and we measurably improve the effectiveness and profitability of our
customers’ business.” This is more than likely an example of a(n):
a.
purpose statement because it is inspirational and describes what the company ought to do
b.
action plan because it’s long term
c.
public statement to renew corporate goodwill
d.
denial of guilt
e.
ethical statement of action
153. Refer to Diebold. In 2003, a study of the Diebold voting machines noted that the administrative
password to all Diebold voting machines was the same: 1-1-1-1. Diebold was buried in an avalanche
of criticism. As a result, Diebold managers had to engage in _____ to design and manufacture voting
machines that would deal with this criticism.
a.
problem identification
b.
rational decision making
c.
benchmarking
d.
multivariable selection
e.
keystoning
154. Refer to Diebold. After a study revealed how easy it was to hack into the Diebold voting machines and
how it did not provide voter security, Diebold responded with a 27-page report that basically said that
there were “checks and balances in place to prevent fraud.” Rather than trying to fix the problem,
Diebold chose to engage in _____, or what it though was a “good enough” alternative to the problem.
a.
benchmarking
b.
optimizing the solution
c.
satisficing
d.
keystoning
e.
framing constraints
155. Refer to Diebold. Because voting is such a personal issue and voter privacy is an important part of the
democratic process, conflict arose between Diebold and its customers and even within the Diebold
organization. The type of conflict that arose from Diebold’s initial decision to ignore all criticisms of
its touch-screen voting machine was:
a.
a-type conflict
b.
c-type conflict
c.
emotive empowerment
d.
organizational disharmony
e.
norm disruption
Ford
An icon of U.S. manufacturing, Ford Motor Company has been one of the most prominent automobile
producers in the world for almost 100 years. Founded by Henry Ford in 1903, his vision was the
production of cars that were affordable to the masses. Today, Ford has been losing money, particularly
in its North American operations. Ford produces more vehicles than it can sell and does so under very
difficult personnel conditions. The history of the company and its relations with the United Auto
Workers labor union has left it with extraordinary long-term expenses in an environment of increasing
competition from younger, more focused car companies.
Furthermore, Ford’s Premium Automotive Group (PAG), which manufactures their luxury
Jaguar, Aston Martin, Land Rover, and Volvo brands, has been consistently losing billions of dollars
year after year. Although the company has substantial cash reserves—over $20 billion—operating
losses were steadily diminishing the company’s financial safety net. Chris Bolen, Ford’s
manufacturing director said, “We took our eye off the ball and got intoxicated with just making
trucks…internally we ignored a lot of waste…we let manufacturing get in trouble.”
This was the situation Alan Mulally found himself in when he took over as the new Ford CEO
in 2006. As Mulally stated, “Our number one priority is to restructure ourselves in the near term.” In
the interest of curbing losses and increasing their manufacturing efficiency, Ford needed effective
strategic planning to save their company.
At this juncture, four particular options presented themselves. First, Ford could close older
plants to cut production costs and excess manufacturing, but it would also raise issues regarding
employee layoffs. The second option would involve cutting back on SUV and truck manufacturing to
focus on smaller, more fuel-efficient cars. Third, Ford could reduce its North American presence to
focus on their more successful markets in Europe, South America, and China. In doing so, however,
Ford would essentially be abandoning its home market. Finally, Ford could sell the PAG group,
returning their focus to the cars that have traditionally been their area of expertise.
Mulally began by reducing dependence on large trucks and SUVs and aggressively closing
plants. Seven plants will close by 2010, and more than 30,000 jobs were eliminated in the past year. In
March 2007, Ford sold the majority stake in Aston-Martin to an investment consortium. Reducing
personnel costs has been a priority as well; Ford’s profit gap is over $2,400 per vehicle with roughly
$1,000 to 1,300 coming from labor. Actively working with the United Auto Workers labor union, Ford
has renegotiated agreements with 33 of its 41 US factories to achieve more flexible rules and timing
and reduce embedded expenses.
Mulally has moved to improve communication levels and commitment throughout the
organization. Many of these policies are new to Ford, but Mulally hopes to match the practices used by
Toyota and others in a continuous improvement system that should help the company move towards
increased sales, reduced costs, and improved quality.
156. Refer to Ford. How can Ford benefit from planning?
a.
Planning encourages employees to engage in behaviors directly related to goal
accomplishment.
b.
Planning encourages employees to work harder for extended periods of time.
c.
Planning encourages the development of task strategies.
d.
Planning benefits both companies and individuals.
e.
Planning does all of the above.
157. Refer to Ford. Unfortunately, for Ford planning is not a cure-all. Which of the following best describes
potential problems associated with planning?
a.
the acceptance of satisficing solutions
b.
a false sense of certainty based on faulty assumptions
c.
the inability of organizational line personnel to accept the long-term benefit of planning
d.
the requirement for expensive employee training before plans can be effectively
implemented
e.
outsourcing
158. Refer to Ford. Ford would use _____ to determine what specific jobs can be eliminated and/or
combined and how the number of Ford employees will be reduced.
a.
short-term strategies
b.
proximal goals
c.
distal goals
d.
action plans
e.
subordinate objectives
159. Refer to Ford. Ford has set _____ goals designed to increase sales, reduce its costs, and improve
quality.
a.
options-based
b.
process-based
c.
proximal
d.
related
e.
distal
160. Refer to Ford. Which of the following can be used to give Ford flexibility in an uncertain
environment?
a.
conditioned learning
b.
dialectical learning
c.
the elimination of substitutable competition
d.
slack resources
e.
the threat of organizational chaos
SHORT ANSWER
1. What is planning? What are its benefits?
2. Briefly describe the benefits and pitfalls of planning.
3. List the steps in effective planning.
4. Identify and explain the purpose of the S.M.A.R.T. guidelines.
5. Identify three ways of increasing goal commitment. Which one is most commonly used by managers?
ANS:
6. Briefly identify and explain the two accepted methods of tracking progress toward goal achievement.
7. Identify the four basic steps in the management by objectives process.
8. List and briefly describe the three kinds of operational plans.
9. List and briefly describe the three kinds of standing plans, and comment on their relative specificity.
ANS:
10. Define the terms decision making and rational decision making. Briefly differentiate between them.
11. List the six steps in the rational decision-making process.
12. What three conditions must exist before managers can make decisions to solve a problem?
13. Briefly explain what decision criteria are. Identify two approaches that may be used to weight these
criteria.
ANS:
14. Identify and explain the step in the rational decision-making process that is based upon a mathematical
procedure.
15. Briefly explain what is meant by bounded rationality. List the three reasons that typically prevent
managers from making rational decisions.
16. Briefly identify the two types of conflict that may spontaneously occur in group decision-making
situations. Comment on the probable effectiveness of group decisions given each type of conflict.
17. Briefly explain how structured conflict can be used to improve group decision making.
18. Briefly compare and contrast electronic brainstorming with face-to-face brainstorming.
ESSAY
1. Describe a planning effort that you are acquainted with (either through reading or personal
experience), and evaluate how the benefits and pitfalls of planning described in the chapter were
manifest in that case. That is to say, you should explain how, if at all, the benefits of planning
described in the text were manifest in your case. Similarly, you should identify any of the significant
pitfalls of planning that might have been manifest in your case. Comment on the extent to which your
case seems to substantiate or refute the claims made for the benefits and pitfalls of planning, as
described in the text.
ANS:
2. Cheryl Trump, of New York City, is the daughter of a well-known financier. She is currently in her
first year of college, but has decided that she definitely wants to earn an MBA, as soon as possible
after earning her four-year college degree. Outline the five steps in effective planning. Use the
guidelines for effective planning to develop an appropriate plan for Cheryl.
3. Identify and briefly define two methods that organizations can use to maintain flexibility as they plan.
Then explain how the two methods differ from traditional planning.
4. Compare and contrast the planning done at the top, middle, and bottom levels of an organization.
5. Describe the management by objectives (MBO) process. Which type of manager would be
responsible for MBO? What is the probable value of MBO to managers?
6. Explain the difference between decision making and rational decision making from the standpoint of
managerial effectiveness.
7. Discuss the role and appropriateness of group decision making in relation to individual decision
making. Identify the disadvantages of group decision making over individual decision making, and
specify some techniques that can be used to overcome these disadvantages.
ANS:
8. Define the two types of conflict that may spontaneously occur in group decision-making situations.
List and explain the approaches to structured conflict that may help to enhance the quality of group
decisions. Be sure to comment on the research results evaluating their effectiveness.
