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Top managers are responsible for creating a climate for change in an organization.


A management study discovered that companies, which invest in their people, will create long-term competitive advantages difficult for other companies to duplicate.

top mannagement

Coca-Cola and PepsiCo spent a total of $75 million to launch mid-calorie sodas The new brands grabbed a combined market share of less than 1 percent. Coke's and PepsiCo's ____ would be responsible for determining that the product should be deleted from each of their product lines.

monitor and disseminator

During a meeting of the Ambulatory Care Nursing Association (ACNA) board of directors, a commitment was made to ask members for their feedback about their experiences with and perceptions of ACNA. The head of the organization said, "The essence of being a leader is to make sure the organization knows itself." Then she volunteered to conduct the environmental scanning and share what she learned with the others. What informational roles is she assuming?


In the decisional role of ____, managers adapt themselves, their subordinates, and their units to incremental change.


Hormel Foods had to recall 104,000 pounds of Stagg canned chili—labeled "hearty beef with a kick of green chilies"—after the kick turned out to come instead from the ground-up parts of a plastic handheld calculator. The recall was the application of which management function?

middle managers

Typical responsibilities for ____ include coordinating and linking groups, departments, and divisions within a company.


As described by Mintzberg, a marketing manager who was hired by a manufacturer of plumbing fixtures to operate information booths would have the informational role of:


Connie O'Day is a middle-level manager for the publishers of Free Spirit magazine, a publication targeted to women who are not focused on finding a husband or maintaining a house and garden. She spends much of her day conducting interviews with groups of women to determine what they consider most important in their lives. She also keeps an eye on the sales and content of other women's magazines. Which informational role does O'Day perform?


____ is defined as getting work done through others.

middle managers

It is the responsibility of ____ to develop intermediate plans, or plans designed to produce results within six to eighteen months.


Bernd Pischetsrieder, chief executive of Volkswagen, announced restructuring plans for the company. VW is Europe's largest carmaker and needed to make itself profitable once again. To do so, VW cut thousands of jobs in the ensuing years through natural attrition, early retirement, and buying workers out of their contracts. The carmaker also considered whether its component parts factories in Brunswick, Kassel, and Wolfsburg were helping VW accomplish its organizational goal. Pischetsrieder blamed much of the company's problems on restructuring that was done in 1993. He insisted that the company is missing a whole generation of managers because its former CEO eliminated a whole layer of management. Now, 45 percent of managers were expected to go into retirement in the following three or four years.

Refer to Volkswagen. VW is examining the ____ of its component parts factories.


First-line managers are responsible for setting objectives consistent with organizational goals and planning and implementing strategies for achieving these objectives.


First-line managers are the only managers who do not supervise other managers.


Coca-Cola and PepsiCo spent a total of $75 million to launch two sodas, banking on the low-carb trend. Carb-conscious consumers rejected the drinks en masse. The new brands grabbed a combined market share of less than 1 percent. Given that the objective of both soft drink manufacturers was to increase their market share, the introductions were notably:


The motivation to manage tends to be higher among managers at higher levels in the organization than it is among managers at lower levels in the organization.

first line manager

A ____ for a McDonald's fast-food restaurant would be responsible for placing orders for food and paper supplies and for setting up weekly work schedules.

encourage, monitor, and reward the performances of their employees

First-line managers will most likely have to:

top manager

Eastman Kodak owns a company that manufactures dental radiation equipment. The company, which is run as an independent unit, has experienced excessive financial losses the last three years. The ____ for the company would be expected to develop the long-term plans needed to make the company profitable.

technical skill

An accountant with ____ has the ability to create a budget, compare the budget to the actual income statement, and determine unnecessary expenses.


According to the principles of scientific management, work and responsibility for the work, should be divided equally between workers and management.


According to Chester Barnard, for many managerial requests or directives, there is a zone of indifference in which managers don't really care if the request is met or the directive is performed.


Kraft Foods has created five global product divisions (beverages, snacks, cheese and dairy, convenience meals, and grocery) and two marketing divisions (one for North America and the other for everything else). According to the systems approach to management, these seven divisions are examples of ____.


According to Mary Parker Follett, if managers use ____ to settle or reduce conflict, each of the parties involved give up some of what they want.

used motion studies to eliminate unnecessary or repetitive motions from the work process

Frank and Lillian Gilbreth are important to management because they ____.


The contingency approach to management holds that there is not one best way to manage an organization.

closed systems

This type of system functions without interacting with their environment.

domination, compromise, and integration

Mary Parker Follett believed managers typically deal with conflict in one of three ways:____.


A(n) ____ is a set of interrelated elements or parts that function as a whole.


Frank and Lillian Gilbreth studied the psychology of groups.


A systems approach to management encourages managers to view each division as a separate, vital organism.

Scientifically train, teach, and develop these employees to help them reach their full potential.

Refer to ISG. What advice should the shift supervisor at the steel plant in charge of the six college students take from the teachings of Frederick Taylor?


One of Taylor's scientific management principles concerned how workers should be selected.

Henri Fayol

____ is best known for developing the five functions of managers and the fourteen principles of management.

conflict could be beneficial

In a departure from mainstream management thinking, Mary Parker Follett believed ____.


Management ideas and practices have been used from the earliest times of recorded history.


According to Fayol's 14 principles of management, esprit de corps is a source of major organizational conflict.

creating the principles of scientific management

Frederick Taylor is famous for____.


____ occurs when 1 + 1 = 3.

acting on threats and opportunities

Which of the following is one of the steps in the process that managers use to make sense of their changing environments?


Successful organizational cultures seem to be based solely upon consistency (i.e., "strength" of the organizational culture).

resource scarcity

____ is the degree to which an organization's external environment has an abundance or scarcity of critical organizational resources.


Suppose that a Mexican car manufacturer wants to export cars to Guatemala. Knowing that the distribution of income within Guatemala is highly unequal and that about 75 percent of the population is below the poverty line would be a(n) ____ component in the manufacturer's general environment.


After the company founders are gone, stories and heroes can help to sustain the founder's values, attitudes, and beliefs in the organizational culture.


All events outside a company that have the potential to influence or affect it occur in the ____ environment.


Under conditions in which the rate of both environmental change and complexity go up while environmental resources become scarce, environmental uncertainty can be expected to increase.

bisible artifact

A mace is commonly used at a university or college convocation ceremony. The mace was originally a weapon, then became the symbol of government, and now has become the symbol of authority of the institution to grant diplomas or degrees. In terms of organizational culture, the mace is an example of a(n) ____.

allowing employees to personalize their cubicles

Milsand Corp. used office cubicles for its employees. Employees were not allowed to personalize their cubicles. If Milsand wanted to change its organizational culture, it could begin by ____.

high buyer dependence on a supplier

The creation of Ingram Distribution allows booksellers to streamline the ordering and return procedures of their books. Ingram made all the books bookstore owners wanted available in one centralized warehouse. Many new bookstore owners would be unwilling and/or unable to return to the method of ordering books from the individual publishers. This is an example of the creation of ____.

behavioral substitution

In order to change an organizational culture, top management can persuade other managers and employees to perform a new behavior in place of an older one. This technique is called ____.

product boycott

____ is a tactic in which an advocacy group actively tries to convince consumers not to purchase a company's product or service.

organizational culture

The ____ is the set of key values, beliefs, and attitudes shared by members of an organization.

develop and sustain their organizational culture

Managers should NOT use environmental scanning to ____.

a video game manufacturer

Which of the following companies is most likely operating in a dynamic environment?

local health inspectors

A fast-food restaurant chain that is famous for its small, square hamburgers. Which of the following would be an industry regulation component of its specific environment?


Environmental ____ is affected by environmental complexity, change, and resources.


Extensive research demonstrates clearly that organizational culture is strongly related to organizational success.

doing an incomplete job of identifying competitors

Companies doing a competitive analysis typically err by ____.


The evidence clearly shows that how well an expatriate's spouse and family adjust to the foreign culture is the most important factor in determining the success or failure of an international assignment.


To protect its farmers, Japan put limitations on the amount of mushrooms and leeks that could be imported into Japan from China. This limitation is an example of a(n) ____.

a problem with franchising in different cultures

When McDonald's entered into an agreement with a French entrepreneur who wanted to own and operate a McDonald's fast-food restaurant in Paris, McDonald's saw the new restaurant as an opportunity. Unfortunately, the restaurant in Paris was not maintained at the cleanliness standards prescribed by McDonald's (but acceptable to the cleanliness standards of the French). McDonald's brought legal action to have the restaurant closed. This example illustrates ____.


The North American Free Trade Agreement (NAFTA) is a regional trade agreement between Canada and the United States. No other nations have signed this trade agreement.


Multinational corporations are corporations that own businesses in two or more countries.

lives and works outside of his or her own country

An expatriate is someone who ____.


When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

easy acess to growing markets

The most important factor used by a globalizing company for determining if a country or a region has an attractive business climate is ____.


As Malta got ready for its admittance into the European Union (EU), the EU removed all taxes on the importation of goods manufactured in Malta. In other words, the EU abolished ____ for Malta-manufactured merchandise.


Global new ventures bring a good or service to market in one foreign market at a time.

joint venture

In Canada, two automobile companies have entered into a ____ to create CAMI Automotive. One firm's management runs the plant, which makes the other's cars. The agreement gives one access to the other's dealers to sell its brand of vehicles.


Sodima is a French cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of ____.

direct foreign investment

____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.

To what extent should the company standardize or adapt business procedures?

One of the major questions that a company must typically answer about its future, once it has decided to go global is ____.


Direct foreign investment is an increasingly important and common method of conducting global business.

North American Free Trade Agreement

The ____ is a regional trade agreement that liberalizes trade between countries more than any other such agreement.


The ____ strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts.


The phase model of globalization means that companies made the transition from a domestic company to a global company in three sequential phases. The three phases are exporting, followed by wholly owned subsidiaries, and finishing with strategic alliances.


One of the disadvantages of global joint ventures is that, unlike licensing and franchising, they do not help companies to avoid tariff and nontariff barriers to entry.

postconventional level

According to Kohlberg's model of moral development, people at the ____ use internalized ethical principles to solve ethical dilemmas.

primary stake holder

When media in India informed the public that Coca-Cola products bottled in India contained a high level of certain cancer-causing pesticides, the Indian government immediately ordered Coke to stop production. The Indian government served as a(n) ____.


In May 2005, U.S. Attorney Michael J. Sullivan announced that the United States had settled civil claims arising out of a suit that alleged Oracle Corporation had violated the False Claims Act in connection with billing the federal government for software training services. The U.S. government learned about the overcharging from a former Oracle vice president. The vice president acted as a(n) ____.

ethical intensity

____ is strong when decisions have large, certain, immediate consequences and when we are physically or psychologically close to those affected by the decision.

economic performance

IBM has a long-standing "Reinventing Education" program, which involves intensive research into how educational institutions can use the fruits of new technologies to transform what they do and thereby improve education. In the process, the program is actually helping to shape a market of significant interest to IBM. IBM views the program as an investment rather than as a charitable contribution. This is an example of the positive relationship between social responsibility and ____.


Historically, ____ responsibility means making a profit by producing a product valued by society. It has been the most basic social responsibility of a business.

they can affect public perceptions and opinions

Secondary stakeholders are important to a company because ____.

preconventional level, conventional level, and postconventional level

The three stages of moral development identified by Kohlberg are ____.


All four areas of social responsibility for companies (economic, legal, ethical, and discretionary) are equally important to a company's overall level of social responsibility


All adults reach the postconventional stage of morality.


The concept of magnitude of consequences is the total harm or benefit derived from an ethical decision


With regard to the question, "Does it pay to be socially responsible?," research has clearly demonstrated that there is an inherent relationship between social responsibility and economic performance of a company.


Doug has a low-paying job for a telecommunications company. Every day when he goes home from work, Doug puts a headset, a stapler, or something similar in his lunch box and takes it home with him. Doug sees nothing wrong with his behavior since he feels he is being paid less than he should. In terms of Kohlberg's stages of moral development, Doug is operating at which level?


According to the stakeholder model of social responsibility, no stakeholder groups are more or less important than any other.

the U.S. Sentencing Commission Guidelines

If a catalog retailer promised customers it would not sell their personal information (addresses, phone numbers, e-mail addresses, etc.) to another direct marketing company, and it did, the catalog retailer would be found guilty of invasion of privacy. Its sentence would be determined by ____.


The categories of social responsibility for a company are economic, legal, ethical, and discretionary

Ethics is the set of moral principles or values that defines right and wrong for a person or group.

Which of the following statements about ethics is true?


The media would be an example of a secondary stakeholder group for an organization


The shareholder model and the stakeholder model are two techniques for determining to whom organizations should be socially responsible.

All of these are reasons why teamwork can be more satisfying than traditional work.

Which of the following is a reason teamwork can be more satisfying than traditional work?


Cognitive conflict is strongly associated with improvements in team performance, and affective conflict is strongly associated with decreases in team performance.

virtual team

According to the U.S. Department of Transportation, the construction of tunnels is one of the greatest challenges encountered during road construction. The technique of tunneling has not kept pace with the development of other technical fields. The USDOT has created a national team of tunnel experts to develop road tunnel engineering principles and maintenance practices in the United States through the use of telecommunications and information technology. This group of tunnel experts will comprise a(n) ____.


A work team is a small number of people who have been assigned responsibility for pursuing a common purpose, achieving performance goals, and improving interdependent work processes.


A preference for teamwork (i.e., collectivism), team level, and team diversity can help companies choose the right team members.


A team has finally matured into a fully-functioning team at the ____ stage of development.

sharing the financial value of performance gains

An organization that rewards its team members through gainsharing is ____.

bureaucratic immunity

The achievement of stretch goals is made easier when the team members have ____.

members must learn to express themselves in new contexts

The major drawback to the use of virtual teams is ____.

had the authority to solve problems related to the correct identification of orthopedic parts

Many orthopedic parts are almost identical in size and shape. Stryker Howmedica Osteonics in New Jersey used a semi-autonomous work group to develop Product Recognition Technology that makes sure parts are identified correctly and orders are filled correctly. This group ____.


____ is a compensation system in which companies share the financial value of performance gains such as productivity, cost savings, or quality with their workers.

by creating problem-solving teams to study ways to improve customer satisfaction and make recommendations for improvements

How are organizations using teams to help increase customer satisfaction?

stretch goals

E-Lab (the "E" stands for experience) has project teams perform field research for its clients. One team had to spend time riding in the back seat of a squad car, accompanying cops on drug raids, as part of research for a new communications device for police departments. Another team studied how people get sick with a cold to create a new over-the-counter cold remedy. Often clients give team members extremely ambitious goals which the team members initially have no idea how to solve. In other words, project teams are given ____.


In general, skill-based pay is most effective for managing the performance of self-managing and self-directing teams.


A company engaged in cross training is using individual team members to teach other members how to do all or most of the jobs they can perform.


Companies are making greater use of teams because teams have been shown to increase (1) customer satisfaction, (2) product and service quality, (3) speed and efficiency in product development, and (4) employee job satisfaction.

always resolve issues by consensus

Which of the following is NOT one of the recommendations for minimizing the occurrence of affective conflict and having a good fight?

work teams

Allen-Edmonds is keeping its shoe manufacturing business in the United States by investing in new machinery and creating new processes. The strategy is a gamble and the outcome is uncertain. To cut costs and improve efficiency, the company's old assembly line is being replaced by a system of employees working in groups, with each person doing several jobs, and each trained to do the others' tasks. Allen-Edmonds is using ____.


The autonomy continuum shows how five kinds of teams differ in terms of autonomy. The correct sequence from low team autonomy to high team autonomy is (1) traditional work groups, (2) employee involvement groups, (3) semi-autonomous work groups, (4) self-designing teams, and (5) self-managing teams.


____ is the extent to which team members are attracted to a team and motivated to remain with it.

chain of command

An international distribution company has a shipping division, a warehouse division, a computer hardware and software distribution center, as well as, a marketing research department, a human resources department, and an accounting department. A salesperson who works in the shipping division is told by the accounting department that he must turn in a weekly expense account. His supervisor in the shipping division wants expense accounts submitted monthly. The salesperson is likely experiencing a problem with ____.


The primary disadvantage of customer departmentalization is ____.

delegation of authority

____ involves assigning direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible.

modular organizations

Except for the core business activities that they can perform better, faster, and cheaper than others, ____ outsource all remaining business activities to outside companies, suppliers, specialists, or consultants.


In a decentralized organization, workers closest to problems are authorized to make the decisions necessary to solve the problems on their own.


An Indian Catholic Cardinal's call for local church leaders to have more power and for papal authority to be distributed to lower levels within the Catholic hierarchy has elicited agreement from other church leaders in India. He also asserted that bishops should not have "to run to Rome for everything" and that canon law should be modified to allow the pope to share his authority. Vithayathil is calling for ____.


____ departmentalization is defined as organizing work and workers into separate units responsible for particular business functions or areas of expertise.


The most common matrix combines customer and functional forms of departmentalization.


Departmentalization is a method of organizing work and workers into separate units responsible for particular business functions or areas of expertise


Cross-department coordination tends to be very easy in organizations with functional departmentalization.

a low degree of task identity

Elena works in a data processing department for a large credit reporting service and is bored. She spends her days inputting an endless stream of monotonous data into much larger data bases. According to the job characteristics model (JCM), one of the primary reasons for her boredom is ____.


The composition of a ____ organization is always changing.


A(n) ____ organization is an organization that is characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication.


The coordination of departmental activities tends to be more difficult with the geographic approach to departmentalization than with the other approaches.


In matrix departmentalization, as in other forms of departmentalization, most employees report to a single boss.

increasing reciprocal interdependence

In essence, reengineering changes organizations by ____.

Mechanistic organizations work best in stable, unchanging business environments

Which of the following statements about mechanistic organizations is true?


In recent years, the Air Force Weather Agency (AFWA) has undergone a radical change in how it determines and shares local weather conditions with pilots. Before the local base weather station was responsible for warnings. The quality of this information varied. Now AFWA provides the same high standard of weather information to all pilots. This is an example of ____?


Refer to Yahoo!. One of the causes of the precipitous drop in the value of Yahoo's stock was the company's inability to subdivide work and workers into separate organizational units responsible for completing particular tasks. For example, Yahoo has no sales unit to cultivate and call on advertising customers. Yahoo caused itself trouble when it decided to not engage in ____.

complex matrix

In a(n) ____, managers from different parts of the matrix report to matrix managers who help them sort out problems and conflicts.

organizational innovation

When Gregg Steiner became the vice president for Cleveland-based Pinxav, he knew the diaper-rash product manufacturer's sales were declining. At a trade show Steiner was pitching the product to some new mothers who had never heard of it. The mothers weren't convinced that they should part with their money for a new-to-them product. The inspired Steiner said, "If you're not happy with the product, I will not only give you your money back, I'll buy you our competitors' product. I'll buy you whatever other brand you want." Suddenly the women were interested, and they all plunked down their money. None of the women ever took Steiner up on his offer. So Steiner decided to make it part of his business practice. This new guarantee was an example of ____.

is a philosophy and collection of planned change interventions

Organizational development ____.

change agent

Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. His vision for CIGNA was to become a top-quartile, specialist property and casualty company. It was a radical proposition. Valerio was a(n) ____.

discontinuous change

When a U.S. automaker learned that it took longer than any other U.S. car manufacturer to assemble a vehicle, it purchased newer, more flexible manufacturing systems to replace its older ones. Which stage of the technology cycle did it enter?

incremental change

During the ____ phase of a technology cycle, companies innovate by lowering the cost and improving the functioning and performance of the dominant design.


Mike Domek is the owner of the Florida-based Tickets Domek's company tapped a market that Ticketmaster had neglected: He specialized in locating and securing premium seating and tickets to sold-out events. Domek used ____ to locate and serve a profitable market.


____ refers to the production of novel and useful ideas.

competitive advantage

Refer to Gore. When introduced, Gore-Tex fabric gave its manufacturer W. L. Gore a _____.

shortens the innovation process

The use of milestones in the experiential approach to innovation ____.


The typical S-curve pattern of innovation indicates that both early and late in the technology cycle, increased effort (i.e., money, research and development) brings only small improvements in technological performance.


Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions?

group compensation

Which of the following is NOT one of the components of creative work environments?

generational change

When incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version, ____ is said to have occurred.

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