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licensing (In licensing, a company allows a foreign company to pay it a fee to make or distribute the first company's product or service)

A company allows a foreign firm to pay it a fee to make or distribute the first company's product or service. This is called

star, (In the BCG matrix, stars have high growth and high market share, and are definite keepers)

Amazon's Kindle has a very high percentage of the market for eBook readers, and this is also a quickly growing market. Thus, using the BCG matrix, the Kindle would be classified as a

mission statement, (A mission statement expresses the purpose of the organization.)

The statement which expresses the purpose of an organization is called a(n)

organizational opportunities, (Organizational opportunities are environmental factors that the organization may exploit for competitive advantage.)

Environmental factors that the organization may exploit for a competitive advantage are known as

growth, stability, and defensive

The common grand strategies are

Most codes of ethics offer guidance on how to treat stakeholders (A code of ethics consists of a formal written set of ethical standards guiding an organization's actions. Most codes offer guidance on how to treat customers, suppliers, competitors, and other stakeholders. The purpose is to clearly state top management's expectations for all employees. Most codes prohibit bribes.)

Which of the following statements about a code of ethics is most true?

availability bias, (Managers tend to give more weight to more recent behavior. This is because of the availability bias—managers use information readily available from memory to make judgments.)

Managers tend to give more weight to more recent behavior. This is due to the

Entrepreneur, (In their decisional roles, managers use information to make decisions to solve problems or take advantage of opportunities. The four decision-making roles are entrepreneur, disturbance handler, resource allocator, and negotiator.)

Which of the following is an example of a decisional role that managers play?

Sociocultural, (The U.S. obesity rate is one of those sociocultural forces capable of altering entire industries.)

The American epidemic of obesity among U.S. youth is an example of which external force?

Deeper commitment to the decision, (Advantages of group decision making include (1) greater pool of knowledge, (2) different perspectives, (3) intellectual stimulation, (4) better understanding of decision rationale, (5) deeper commitment to the decision)

Which of the following is an advantage of group decision making?

favorable government regulations, (A manager may be able to discover an opportunity in favorable government regulations)

When analyzing the "O" in SWOT analysis, a manager might take note of

Who is our customer?, (Good mission statements should answer the question, "Who is our customer?" )

Which of the following is a question that should be answered by a company's mission statement?
A. Does it inspire enthusiasm and encourage commitment?

licensing., (In licensing, a company allows a foreign company to pay it a fee to make or distribute the first company's product or service.)

Eli Lilly has agreed to let a South African company manufacture several of Eli Lilly's diabetes drugs and pay Eli Lilly a fee to distribute the drugs with a different brand name in South Africa. Eli Lilly is engaging in

Management, (Management is defined as (1) the pursuit of organizational goals efficiently and effectively by (2) integrating the work of people through (3) planning, organizing, leading, and controlling the organization's resources.)

The pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization's resources is called

Franchising, (Franchising is a form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services.)

Pizza Hut provides the use of its name plus operating know-how to companies in Costa Rica in return for a fee plus a percentage of profits. Pizza Hut is

Diversity, (Diversity represents all the ways people are unlike and alike—the differences and similarities in age, gender, race, religion, ethnicity, sexual orientation, capabilities, and socioeconomic background.)

______ represents all the ways people are unlike and alike.

technical

______ skills consist of the job-specific knowledge needed to perform well in a specialized field.

strong financial resources of the firm, (Strengths of a company include financial resources & requirements, an internal factor.)

When analyzing the "S" in a SWOT analysis, a manager might take note of

The BCG matrix, (In general, the BCG matrix suggests that an organization will do better in fast-growing markets in which it has a high market share rather in slow-growing markets in which it has a low market share. These concepts are illustrated in Figure 6.4)

Which of the following strategy tools suggests that an organization will do better in fast-growing markets in which it has a high market share rather than in slow-growing markets in which it has a low market share?

environmental scanning., (Environmental scanning is careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans.)

Careful monitoring of an organization's internal and external environment to detect early signs of opportunities and threats that may influence the firm's plans is called

I want to lose 20 pounds by June 1, 2011., (A SMART goal is specific, measurable, attainable, results-oriented, and has target dates. Only choice C has all of these characteristics.)

Laurie has been struggling with her weight and one of her coworkers suggested that she make a SMART goal for herself. Which of the following is the best example of a SMART goal for Laurie?

cost leadership, differentiation, cost focus, and focused differentiation, (Porter's four competitive strategies (also called four generic strategies) are (1) cost leadership, (2) differentiation, (3) cost-focus, and (4) focused-differentiation)

Porter's competitive strategies include

multiplier, (In being a manager you have a multiplier effect: Your influence on the organization is multiplied far beyond the results that can be achieved by just one person acting alone.)

The _________ effect states that your influence on the organization is multiplied far beyond the results that can be achieved by just one person acting alone

culture

A nation's __________ is the shared set of beliefs, values, knowledge, and patterns of behavior common to its people.

Directing daily tasks of nonmanagerial personnel, (According to Figure 5.3, operational planning is done by first-line management and directs the daily tasks of nonmanagerial personnel. Decisions are often predictable, following routine procedures )

Which of the following is associated with operational planning?

joint venture, (A U.S. firm may form a joint venture, also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country. Sometimes a joint venture is the only way an American company can have a presence in a certain country, whose laws may forbid foreigners from ownership. Indeed, in China, this is the only way foreign cars may be sold in that country.)

China does not allow foreign car manufacturers to sell vehicles independently in its country but instead requires them to partner with a Chinese company. This type of partnership is known as a

efficient (Efficiency is the means of attaining the organization's goals. To be efficient means to use resources—people, money, raw materials, and the like—wisely and cost-effectively)

Elian, a manager at a busy restaurant, was very careful about how he scheduled his personnel, making sure everyone was busy during work, and he carefully watched his other costs too, getting competitive bids from suppliers on a regular basis. Elian would best be described as a(n) _____ manager.

1st line managers, (Following the plans of middle and top managers, first-line managers make short-term operating decisions, directing the daily tasks of nonmanagerial personnel, who are, of course, all those people who work directly at their jobs but don't oversee the work of others.)

Managers who make short-term operating decisions and direct the daily tasks of the nonmanagerial employees are called

utilitarian, (Ethical behavior in the utilitarian approach is guided by what will result in the greatest good for the greatest number of people. Managers often take the utilitarian approach, using financial performance—such as efficiency and profit—as the best definition of what constitutes "the greatest good for the greatest number)

In considering a large-scale layoff, a manager performs a cost-benefit analysis and determines that profits will be greatest if she proceeds. She is using the ______ approach to guide her decision regarding an ethical dilemma.

defensive, (A defensive strategy or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts. In a variation of this strategy, it can sell off (liquidate) assets—land, buildings, inventories, and the like.)

Techno Tools is selling off land, buildings and some of its product inventory. This is a variation of which of these grand strategies?

Ferrari, (The focused-differentiation strategy is to offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market)

Which of the following carmakers pursues a focused-differentiation strategy?

insider trading, (Insider trading is the illegal trading of a company's stock by people using confidential company information.)

______ is the illegal buying or selling of a company's stock by people using confidential company information.

liaison, (In a liaison role, you must act like a politician, working with other people outside your work unit and organization to develop alliances that will help you achieve your organization's goals.)

In a ______ role, you must act like a politician, working with other people outside your work unit and organization to develop alliances that will help you achieve your organization's goals.

Planning helps you cope with uncertainty (There are four benefits to planning: (1) planning helps you check on your progress. (2) Planning helps you coordinate activities. (3) Planning helps you think ahead. (4) Planning helps you cope with uncertainty.)

Which of the following is a benefit of planning?

functional

A ______ manager is responsible for just one organizational activity.

groupthink, (Groupthink occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation. Here the positive team spirit of the group actually works against sound judgment.)

Carla talked with Maddie after their task force meeting, and they discovered that neither of them had been in favor of dropping some items from next year's budget, yet neither spoke up. Both wanted to be supportive of the group instead. This is an example of

Its purpose is to motivate employees, (The purpose of MBO is to motivate rather than control subordinates)

Which of the following would BEST describe MBO?

jointly set objectives., (Management by objectives (MBO) is a four-step process, the first of which is for managers and employees to jointly set objectives for the employee.)

The first step in the MBO process is to

organizing, (Organizing is defined as arranging tasks, people, and other resources to accomplish the work)

When administrators of a college are determining whether to hire more full-time instructors or possibly more part-time ones, they are engaged in

uncertainty avoidance, (The Hofstede model of four cultural dimensions identified four dimensions along which national cultures can be placed: (1) individualism/collectivism, (2) power distance, (3) uncertainty avoidance, and (4) masculinity/femininity.)

Which of the following is a cultural dimension of Hofstede's model?

anchoring and adjustment bias, (Managers will often give their employees a standard percentage raise in salary, even though the raise may be completely out of alignment with what other companies are paying for the same skills. This is an instance of the anchoring and adjustment bias, the tendency to make decisions based on an initial figure.)

Managers at Mercury Motor Club have given employees raises year after year based on what they had given the year before, even though now their employees were very underpaid compared to similar positions with other clubs. This is an example of a(n)

high individualism, (In general, the United States ranked very high on individualism, relatively low on power distance, low on uncertainty avoidance, and moderately high on masculinity.)

When examining the dimensions of Hofstede's model, which of the following is true of the U.S.?

values, (Values are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior, such as the belief that "Fairness means hiring according to ability, not family background.")

Fairness in hiring practices is an example of an organization's

preconventional, (Kohlberg has proposed three levels of personal moral development—preconventional, conventional, and postconventional. At level 1, the preconventional level, managers would be autocratic or coercive, and expect employees to be obedient for obedience's sake.)

Tanya is a new manager, and she is always threatening her employees with a variety of punishments in order to get them to follow the rules. The level of personal moral development at which Tanya is operating is the ______ level according to Kohlberg.

low-context culture, (A person from North America, Great Britain, Scandinavia, Germany, or Switzerland, for example, comes from a low-context culture in which shared meanings are primarily derived from written and spoken words.)

In a(n) ______, shared meanings are primarily derived from written and spoken words rather than situational cues.

ethics, (Ethics are the standards of right and wrong that influence behavior.)

Standards of right and wrong that influence behavior are known as

personally certify financial reports, (Administered by the SEC, SarbOx requires a company's chief executive officer and chief financial officer to personally certify the organization's financial reports, prohibits them from taking personal loans or lines of credit, and makes them reimburse the organization for bonuses and stock options when required by restatement of corporate profits.)

The Sarbanes-Oxley Act of 2002 requires that a company's chief executive officer and chief financial officer must comply with which of the following?

cost leadership, (The cost-leadership strategy is to keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market.)

Timex Watch makes inexpensive but reliable watches sold throughout the U.S. and is an example of an organization pursuing a _________ strategy.

escalation of commitment, (You need to be aware of the escalation of commitment bias, whereby decision makers increase their commitment to a project despite negative information about it.)

Having just spent $1500 for a new engine for his old car, Raimundo now learns his transmission needs to be replaced. Raimundo decides to junk the car now, rather than repair it. Raimundo has avoided the __________ bias.

planning, (Planning is defined as setting goals and deciding how to achieve them)

Setting goals and deciding how to achieve them is called

satisficing., (Because most people would just as soon cut short a group meeting, the tendency is to seek a decision that is "good enough" rather than to push on in pursuit of other possible solutions. Satisficing can occur because groups have limited time, lack the right kind of information, or are unable to handle large amounts of information.)

The tendency of a group to settle on a decision that is "good enough" is called

outsourcing., (A common practice of many companies, outsourcing is defined as using suppliers outside the company to provide goods and services.)

When a company uses a supplier outside itself to provide goods and services, it is

bounded rationality., (The bounded rationality concept suggests that the ability of decision makers to be rational is limited by numerous constraints, such as complexity. The problems that need solving are often exceedingly complex, beyond understanding.)

Candace and other managers in her firm are trying to make some decisions about global expansion. They are struggling to understand the risks, given the complexity of world markets today and recent global instabilities. The difficulty Candace's team is facing prevents perfectly rational decision making, and is an example of

setting goals and deciding how to achieve them

Planning is defined as

culture shock, (Because a culture is made up of so many nuances, visitors to another culture may experience culture shock—the feelings of discomfort and disorientation associated with being in an unfamiliar culture.)

Kendall was feeling very uncomfortable and disoriented since she arrived for her new job in Bangkok. It seemed like just about everything was different than what she was used to. Kendall was experiencing

Economic forces consist of the general economic conditions and trends—unemployment, inflation, interest rates, economic growth—that may affect an organization's performance.

Inflation is an example of ______ forces in an organization's general environment.

strategic, tactical, and operational.

There are three levels of planning. Their order, from first to last, is

geocentric, (Geocentric managers accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.)

__________ managers accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.

heuristics. (Scholars call rules of thumb heuristics—strategies that simplify the process of making decisions.)

Landon has a simple rule that he follows when it comes to new hiring; if four or more of his staff are working 20% or more overtime, he hires another employee. Landon is using

High power distance, (High power distance, such as occurs in Mexico, India, Thailand, Panama, and the Philippines, means that people accept inequality in power among people, institutions, and organizations.)

______ means that people accept inequality in power among people, institutions, and organizations.

differentiation. (The differentiation strategy is to offer products or services that are of unique and superior value compared to those of competitors but to target a wide market.)

An organization that is offering unique, superior products or services to a wide market is pursuing a strategy of

Moral rights, (Ethical behavior in the moral-rights approach is guided by respect for the fundamental rights of human beings, such as those expressed in the U.S. Constitution's Bill of Rights. We would all tend to agree that denying people the right to life, liberty, privacy, health and safety, and due process is unethical.)

Issues like privacy, health and safety, and due process being described as basic rights is typically tied to which of the following approaches to deciding ethical dilemmas?

technological; general (Technological forces are new developments in methods for transforming resources into goods or services. They are part of the organization's general environment.)

The music industry has been changed dramatically by consumers' ability to download songs from the Internet. This is an example of ______ forces in an organization's ______ environment.

an organization, (An organization is a group of people who work together to achieve some specific purpose)

A group of people who work together to achieve some specific purpose is/are called

top managers. (Top managers make long-term decisions about the overall direction of the organization. They need to pay a lot of attention to the environment outside the organization, being alert for long-run opportunities and problems and devising strategies for dealing with them. Thus, executives at this level must be future oriented, dealing with uncertain, highly competitive conditions.)

Managers who are future oriented, dealing with uncertain, highly competitive conditions, and who stay alert to long-run opportunities and problems are most likely to be

delegation

The process of assigning meaningful authority and responsibility to managers and employees lower in the hierarchy.

functional

In this organizational structure, people with similar job specialties are grouped together

market culture

Kia Motors takes a very aggressive stance to fire executives who don't meet sales goals. This is an example of which type of culture?

Work Specialization

The arrangement of having discrete parts of a task done by different people is called

reliability

The degree to which a test measures the same thing consistently is known as its

Job Analysis

Determining, by observation and analysis, the basic elements of a job.

The Civil Rights Act of 1964

This act established the Equal Employment Opportunity Commission

Affirmative Action

This program tries to make up for past discrimination in employment by actively finding, hiring, and developing the talents of people from groups traditionally discriminated against

job specification

This document describes the minimum qualifications a person must have to perform a job successfully

360 Degree Appraisal

In some companies, employees receive assessments from their manager, peers, subordinates, and customers, while also performing a self assessment. This is known as

Extrinsic Reward

The payoff a person receives from others for performing a particular task

Hygiene Factors

According to Herzberg, these factors do not motivate if present, but, if absent, result in dissatisfaction

Valence

According to Expectancy Theory, motivation is a function of expectancy, instrumentality, and

positive reinforcement

This use of positive consequences to encourage desirable behavior is called

Achievement, Affiliation, Power

The three needs according to McClelland's Acquired Needs Theory

Trait Approach

This approach to leadership attempts to identify distinctive characteristics that account for the effectiveness of leader

referent power

Power deriving from one's personal attraction is called

Initiating Structure

According to the Ohio State studies, leaders with this behavior that organize and define what group members should be doing

R1

According to Hersey and Blanchard's Situational Leadership Theory, a worker who is unable, unwilling and lacks confidence is at this level of readiness

delegating

In the situational leadership model, this leadership style is recommended for employees with the highest levels of readiness.

the balanced scorecard

This control technique provides four indicators with which organizations can set goals and measure performance.

balance sheet

This financial statement shows a firm's assets, liabilities and owner's equity

income statement

This financial statement shows revenues and expenses over time

Total Quality Management (TQM)

This process instituting ongoing small, incremental improvements in all parts of an organization

W. Edwards Deming

The PDCA cycle was made popular by this quality pioneer.

John Quincy Adams?

This President wrote, "If your actions inspire others to dream more, learn more, do more and become more, you are a leader."

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