MGMT Ch1-10

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​Which of the following statements is true of experiential approach to innovation?

It uses intuition and hands-on experience to reduce uncertainty and accelerate learning.

​The compression approach to innovation is an approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding.


Which of the following is an error that managers make in the refreezing phase?

They declare victory too soon.

Which of the following best defines an incremental change?

​It is a phase in which companies innovate by lowering the cost and improving the functioning and performance of the dominant design.

​Which of the following statements is true of technological lockout?

It occurs when a new dominant design prevents a company from competitively selling its products.

​KelHouse Corp. specializes in mobile computing devices. It has developed a working model of a cell phone charger that can charge the battery of a cell phone in less than 15 minutes. This model is being tested for design, function, and reliability. In the context of the experiential approach to innovation, the working model is a(n) _____.

​product prototype

​In the context of organizational decline, which of the following is true of the blinded stage?

Key managers fail to recognize the internal or external changes that will harm their organizations.

​_____ are forces that produce differences in the form, quality, or condition of an organization over time.

Change forces

​The compression approach of innovation management is used in:

​periods of incremental change.

Which of the following best defines results-driven change?

​It is the change created quickly by focusing on the measurement and improvement of results.

​Which of the following statements is true of global consistency?

It simplifies decisions for managers at company headquarters.

​Which of the following is an advantage of joint ventures?

​They help companies avoid tariff and nontariff barriers to entry.

​_____ can help reduce uncertainty about how to act and decrease misunderstandings between expatriates and their families and locals.

Cross-cultural training

​_____ is selling domestically produced products to customers in foreign countries.


Two factors that help companies determine the growth potential of foreign markets are purchasing power and foreign competitors.


Local adaptation is typically preferred by managers who are charged with making the international business successful in their countries, whereas managers at company headquarters value global consistency because it simplifies decisions.


​Which of the following trade barriers is established to protect the health and safety of citizens?

Government import standards

​Which of the following trends has allowed companies to skip the phase model of globalization when going global?

​Low-cost communication technologies make it easier to communicate with global customers.

​Crimsom Corp., an electronics manufacturer in Mallowdeer, plans to enter a foreign market. It wants to establish its new office in Ostview. Which of the following is a qualitative factor that Crimsom Corp. should consider while choosing the new office location?

Company strategy

​Nearly all technology cycles follow a typical S-curve pattern of innovation.


​Which of the following is a difference between experiential approach to innovation and compression approach to innovation?

Experiential approach is used to establish a new dominant design, whereas compression approach is used to improve the function of the existing dominant design.

​In the context of organizational development, the purpose of large-system interventions is to:

change the character and performance of an organization, business unit, or department.

​Technological substitution occurs when:

customers purchase new products to replace older technologies.

​_____ is the process used to get workers and managers to change their behaviors and work practices.

Change intervention

​Which of the following is an error that managers make in the change phase?

They undercommunicate the vision by a factor of ten.

​_____ is a psychological state of effortlessness, in which you become completely absorbed in what you are doing and time seems to pass quickly.


​_____ is a new technological design or process that becomes the accepted market standard.

Dominant design

​_____ is a technique in which trainees are placed in an ethnic neighborhood for three to four hours to talk to residents about cultural differences.

​Field simulation training

​The two kinds of cooperative contracts are:

licensing and franchising.

​_____ are new companies that are founded with an active global strategy and have sales, employees, and financing in different countries.

Global new ventures

Adaptability screening is used to assess how well managers and their families are likely to adjust to foreign cultures.


Which of the following is a disadvantage of wholly owned affiliates?

The expense of building new operations

Purchasing power is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country.


​Political uncertainty is the risk associated with:

social unrest.

​Which of the following is a disadvantage of franchising?

​Franchisors face a loss of control when they sell businesses to franchisees who are thousands of miles away.

​In the context of organizational development, the purpose of person-focused interventions is to:

​increase interpersonal effectiveness by helping people to become aware of their attitudes.

​Which of the following best defines technological discontinuity?

​It is the phase of an innovation stream in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance or function.

​Which of the following is an advantage of licensing?

It allows companies to earn additional profits without investing more money.

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


​Which of the following best defines a tariff?

It is a direct tax on imported goods.

​Which of the following is the most important factor in determining the success and failure of an international assignment?

How well an expatriate’s spouse and family adjust to the foreign culture

​Which of the following is a disadvantage of exporting?

Transportation costs can significantly increase the price of an exported product.

​_____ is an agreement in which companies combine key resources, costs, risks, technology, and people.

Strategic alliance

​_____ are specific limits on the number or volume of imported products.


​If companies focus too much on local adaptation, they run the risk of:

​losing the cost effectiveness and productivity that result from using standardized rules and procedures throughout the world.

​A franchise is a collection of networked firms in which the manufacturer or marketer of a product or service licenses the entire business to another person or organization called the _____.


Organizational development takes a short-range approach to change.


​The General Electric workout is a special kind of results-driven change.


​In the context of organizational decline, which of the following is true of the dissolution stage?

The company is dissolved through bankruptcy proceedings.

​Which of the following is true of the S-curve pattern of innovation of a product?

The flat slope indicates that increased effort brings only small improvements in technological performance.

​Which of the following is true of design competition?

​The older technology usually improves significantly in response to the competitive threat from the new technologies.

​Work group encouragement occurs when group members have diverse experience, education, and backgrounds and the group fosters mutual openness to ideas; positive, constructive challenge to ideas; and shared commitment to ideas.


​_____ is a government’s use of trade barriers to shield domestic companies and their workers from foreign competition.


​_____ is the risk of major changes in political regimes that can result from war, revolution, death of political leaders, or other influential events.

​Political uncertainty

​_____ is the degree to which societies believe that individuals should be self-sufficient.


In the context of global markets, which of the following factors helps companies determine the growth potential of foreign markets?​

Purchasing power

​Which of the following is a regional trade agreement between most European countries?

​The Maastricht Treaty of Europe

​Which of the following statements is true of the World Trade Organization?

It ensures that trade flows as predictably and freely as possible.

​_____ are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged.

Creative work environments

​Bankruptcy or dissolution is likely to occur in the crisis stage unless a company completely reorganizes the way it does business.


​_____ is a change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology.

Generational change

The criteria for choosing an office location are the same as the criteria for entering a foreign market.


The North American Free Trade Agreement (NAFTA) is a regional trade agreement between the United States, Canada, and Mexico.


​Which of the following best defines the General Electric workout?

​It is a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems.

​In contrast to change forces, resistance forces support the status quo, that is, the existing conditions in an organization.


According to the World Trade Organization, voluntary export restraints are legit and cannot be questioned.


​In an organization, organizational encouragement of creativity occurs when:

management encourages risk taking and new ideas.

​An error in the refreezing stage is not systematically planning for and creating short-term wins.


In the context of cross-cultural training, the practice of adapting to cultural differences is called:

cultural simulation.

​Over the years, flat screen television sets have been replaced by LED television sets. LED television sets are the new market standard. This is an example of a dominant design.


​In the context of organizational development, the purpose of small-group interventions is to:

assess how a group functions and help it work more effectively to accomplish its goals.

​Which of the following statements is true of the Maastricht Treaty of Europe?

Its purpose was to transform twelve different economies and currencies into one common economic market with one common currency.

Which of the following is an error that managers make during the unfreezing stage?

They do not establish a great enough sense of urgency.

​In the context of organizational decline, which of the following is true of the crisis stage?

Companies lack the resources to fully change how they run their businesses.

​Which of the following statements is true of resistance to change?

It decreases when change efforts receive significant managerial support.

Global new ventures are foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company.


​In the context of resistance to change, _____ is the use of formal power and authority to force others to change.


​More companies are likely to go out of business during economic recession or slowdown than in a time of discontinuous change and changing standards.


​ _____ are foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company.

​Wholly owned affiliates

​Tom is an editor for the sports column at Mailing Daily. Chloe, Tom’s manager, asks him to handle the essay column along with the sports column. Which of the following job redesign techniques is used by Chloe?

​Job enlargement

​_____ is a method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks.


​Working relationships between modular organizations and outside companies tend to be more stable and longer lasting.


​A virtual organization is an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants.


​Which of the following is a disadvantage of modular organizations?

​They are characterized by a loss of control that occurs when key business activities are outsourced to other companies.

Which of the following is an advantage of unity of command?

​It prevents the confusion that might arise when an employee receives conflicting commands from two different bosses.

​Stephanie is a receptionist at Violetcoast Corp. Over a period of six months, Stephanie has done a variety of jobs, such as data entry and preparing financial statements, along with her daily work. This scenario is an example of _____.

job rotation

In the context of task interdependence, in _____, each job or department contributes to the whole independently.​

pooled interdependence

​Which of the following is an advantage of decentralization?

​It develops employee capabilities throughout a company and leads to faster decision making and more satisfied customers and employees.

​Empowerment can lead to changes in organizational processes because meaning, competence, impact, and self-determination produce empowered employees who take active rather than passive roles in their work.


​Which of the following statements is true of the norming stage of team development?

Team members begin to settle into their roles as team members in the norming stage of team development.

​Social loafing occurs when:

workers withhold their efforts and fail to perform their share of the work.

​Which of the following is a disadvantage of a large team?

In a large team, team members find it difficult to get to know one another.

​Which of the following is a characteristic of cognitive conflict?


Gainsharing works best in unstable environments where employees are required to learn additional skills or knowledge.


​In the context of work teams, which of the following increases employee job satisfaction?

Being involved in decision-making processes

​In which of the following ways can teams have healthy conflicts?

By focusing on issues rather than personalities

Which of the following is a difference between employee involvement teams and semi-autonomous work groups?

​Employee involvement teams do not have the authority to make decisions, whereas semi-autonomous groups have the authority to make decisions.

Which of the following kinds of teams have the most autonomy?

Self-designing teams

​Vanessa is appointed as the project manager for a project on new product development at Glacier Inc. After selecting employees from different functional areas to work as a team, she conducts a meeting with the new team members so that they can get to know each other. Following a brief interaction session, Vanessa presents the team norms to them. This scenario illustrates that Vanessa’s team is in the _____ stage of team development.


​The second transfer that occurs with delegation is:

​that a manager gives a subordinate full authority over the budget, resources, and personnel needed to do a job.

​In the context of task interdependence, in _____, different jobs or groups work together in a back-and-forth manner to complete an intraorganizational process.

​reciprocal interdependence

Staff functions are activities that directly contribute to creating and selling a company’s products, whereas line functions are activities that support staff functions.


​The third transfer that occurs with delegation is that a manager gives a subordinate full authority over the budget, resources, and personnel needed to do a job.


​_____ is solving problems by consistently applying the same rules, procedures, and processes.


​Bridget’s Gifts, a greetings and gifts store in Janville, has four departments: flowers and soft toys, cards and e-cards, metal collectibles, and photo albums and scrapbooks. These departments are responsible for producing their own products. This scenario is an example of _____.

product departmentalization

​Which of the following is an advantage of geographic departmentalization?

It can reduce costs by locating unique organizational resources closer to customers.

Which of the following is an advantage of project teams?

They reduce communication barriers.

​Identify a true statement about team norms.

They bestow stronger organizational commitment.

​Which of the following is most likely a result of minority domination?

Team members do not feel accountable for the decision and actions taken by their teams.

​Which of the following statements is true of the members of virtual teams?

They use email and videoconferencing.

​Which of the following statements is true of affective conflict?

​It relates to the emotional reactions that can occur when disagreements become personal rather than professional.

Firms must provide team members with the technical training they need to do their jobs, particularly if they are being cross-trained to perform all of the different jobs on a team.


Cross-training is less appropriate for teams of highly skilled workers.


Intentionally doing one’s work badly is an example of a negative team norm.


​Onyx Inc., a manufacturer of home appliances, received consumer complaints about its product demonstration and installation services. Marshall, the company’s chief executive officer, ordered investigation to determine the reasons for these complaints. It was found that employees who were hired to demonstrate and install the products lacked experience. Marshall immediately formed a team who were trained by technicians to improve their skills. Subsequently, all the consumers who had previously filed complaints were given effective demonstration. Eventually, the customer service desk started receiving appreciations and the sales improved. In this scenario, the work team improved _____.

customer satisfaction

​Which of the following signs indicates that a team’s size needs to be changed?

If a few members dominate the team

Which of the following is an advantage of virtual organizations?

They let companies share costs and are fast and flexible.

​Danielle is a receptionist at Stanlam Corp. In addition to her daily tasks, Courtney, Danielle’s boss, asks her to prepare financial statements for a few small companies Stanlam owns. This is an example of job rotation.


​The chain of command clarifies which task has to be performed by whom.


Challenging team goals greatly increase the incidence of social loafing.


If employees can work effectively on their own, they can always work effectively in teams and do not require training.


​The primary advantage of matrix departmentalization is that a high level of coordination is not required.


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


​Jason is an employee at Manisch Burger and Meals. He is assigned the task of serving soft drinks to customers ordering meals with potato fries, a burger, and a roll. Which of the following best illustrates Jason’s job design?

​Job specialization

​Which of the following is an advantage of product departmentalization?

It allows managers and workers to specialize in one area of expertise.

​Which of the following is a difference between a line function and a staff function?

​A line function contributes directly to selling a company’s products, whereas a staff function does not contribute directly to selling a company’s products but instead supports line activities.

Gillian, a salesman, has completed his day’s tasks and is about to leave. Marsha, his supervisor, realizes that there is a task pending and assigns it to Gillian. Gillian refuses to complete the task by stating that he has finished his share of work. He suggests Marsha to assign the task to someone else. Marsha states that if he refuses to complete the task, he would have to look for a different job. Gillian now becomes more cooperative and agrees to work on the task. Which of the following kinds of team does this case exemplify?

A traditional work group

​Which of the following statements is true of the members of self-managing teams?

​They manage and control all of the major tasks directly related to production of a product or service without first getting approval from management.

​Carmine Inc. is a software firm that caters to the requirements of its clients. The company follows an employee-friendly workplace culture. Team members can access all vital and confidential data that is normally accessible only by managers. This helps in motivating the teams and keeping them well informed. This scenario illustrates that teamwork increases _____.

employee job satisfaction

​Staff function:

​is an activity that does not contribute directly to creating or selling a company’s products but instead supports line activities.

​The primary disadvantage of customer departmentalization is:

that it leads to duplication of resources.

​In the context of the job characteristics model, which of the following best defines autonomy?

​It is the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the work.

​Which of the following best defines staff authority?

​It is the right to advise but not command others who are not subordinates in the chain of command.

Which of the following is true of job specialization?

​It occurs when a job composed of a small part of a larger task or process.

​Which of the following is a declining stage when teams are not effectively managed?


​Which of the following is an advantage of cross-training?

It allows a team to function normally even in the absence of a member.

The _____ is an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes.

job characteristics model

​Which of the following is an advantage of matrix departmentalization?

It allows companies to manage in an efficient manner large, complex tasks.

Which of the following best defines an interorganizational process?

​It is the collection of activities that take place among organizations to transform inputs into outputs that customers value.

​Which of the following statements is true of functional departmentalization?

​It allows work to be done by highly qualified specialists.

​Which of the following statements is true of compensation?

Nonfinancial awards tend to be most effective when teams or team-based interventions are first introduced.

​Which of the following is true of employee involvement teams?

They offer advice and suggestions to management concerning specific issues.

​_____ is a management principle that workers should report to just one boss.

Unity of command

​Which of the following statements is true of team norms?

They regulate the everyday actions that allow teams to function effectively.

​In the context of the job characteristics model, _____ is motivation that comes from the job itself rather than from outside rewards such as a raise or praise from the boss.

internal motivation

​Which of the following is necessary for stretch goals to effectively motivate teams?

Teams must be empowered with control of resources, such as budgets, workspaces, and computers.

​The finance team of a company conducts a meeting to discuss the worthiness of investing its funds in the local share market. Although most of the team members support the idea, one member, Mikhail, feels that the proposed investment is risky as the stock prices of many companies in the market has been erratic. However, Mikhail does not voice his opinion fearing that his dynamics with the team would be affected. The phenomenon that reflects Mikhail’s psychology is called _____.


​Planning encourages persistence even when there may be little chance of short-term success.


Specific, challenging goals provide a target for which to aim and a standard against which to measure success.


​The most popular approach to increase goal commitment is to _____.

set goals participatively

​_____ are responsible for developing operational plans.

Lower-level managers

Which of the following is a decision-making method in which an individual or a subgroup is assigned the role of critic?

Devil’s advocacy

​A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods can be referred to as _____.

standing plans

_____ is a process wherein each decision criterion is compared directly with every other criterion.

Relative comparisons

​The nominal group technique improves group decision making by decreasing a-type conflict.


​Research indicates that the effectiveness of goal setting can be doubled by the addition of feedback.


​Which of the following statements is true of planning?

It intensifies the effort put in by managers and employees.

​Which of the following best defines a SWOT analysis?

​It is an assessment of both the internal and external environment of an organization.

​Ziff Corp. was a leading electronics firm for about three decades. As the competition changed, its product innovation stopped. The managers at Ziff Corp. are well aware of the strategies that lead to their company’s success and they continue to follow the old strategies. This scenario is an example of _____.

​competitive inertia

Which of the following is the first step of a strategy-making process?​

Assessing the need for strategic change

The threat of new entrants is a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry.


​Which of the following best defines cost leadership?

​It is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that a firm can offer the product or service at the lowest price in the industry.

​In the context of portfolio strategy, _____ is the purchase of a company by another company.


​A competitive advantage becomes a sustainable competitive advantage when other companies start duplicating the value a firm is providing to customers.


​The purpose of options-based planning is to commit people and resources to a particular course of action.


​ZeCola is a beverage manufacturer. It presents WYB, a zero-calorie drink to compete with We Fresh’s Shire, a low-calorie drink. When WYB is released in the market, We Fresh cuts down the price on Shire to match WYB’s price. This scenario is an example of a(n) _____.


​Bob’s Assembly is a hardware manufacturer. It specializes in builders’ hardware for doors, cabinets, windows, and bathrooms. Bob’s Assembly products are cheaper and 95% more durable than its competitors’ products. This scenario is an example of _____ as Bob’s Assembly performs better than its competitors.

distinctive competence

​Spade and Marcher Corp. manufactures and sells toy guns. These toy guns are a perfect imitation of real weapons. Inspired by Spade and Marcher’s success, Keith & Sons, an arms manufacturer in Korowlla, starts to manufacture toy guns too. Which of the following adaptive strategies is used by Keith & Sons?


​Identify the most specific type of standing plans.

​Rules and regulations

​The last step in effective planning is to _____.

maintain flexibility in planning

A _____ is a gap between a desired state and an existing state.


​Which of the following is the first step in the process of management by objectives?

Discussing possible goals

​The marketing managers of Point Inc. are having a conflict over how they can improve the marketing strategy of their company. The managers are disagreeing on the views presented by each other based on their experiences and knowledge. In this scenario, the managers are engaged in a(n) _____.

c-type conflict

​The operations manager of a car manufacturing company in the U.S. wants to set up factories in three other countries by the end of the current year. After he has set this goal, which of the following is the next step he should take in order to achieve this goal?

Develop commitment to the goal

​In the context of adaptive strategies, which of the following is true of defenders?

They aggressively hold their current strategic position by doing the best job they can to hold on to customers in a particular market segment.

​Which of the following can help managers to improve the speed and accuracy with which they determine the need for strategic change?

Looking for signs of strategic dissonance

A strategic group is a task force within a company that analyzes the company’s own weaknesses to determine how competitors could exploit them for competitive advantage.


Rare resources are resources that are not controlled or possessed by many competing firms and are necessary to sustain a competitive advantage.


Once a strategic objective has been accomplished, a new one should be chosen.


​Which of the following statements is true of a portfolio strategy?

It guides the strategic decisions of corporations that compete in a variety of businesses.

​Which of the following statements is true of analyzers?

They are a blend of the defender and prospector strategies.

​Which of the following is the last step of a strategy-making process?

Choosing strategic alternatives

​Which of the following best defines a distinctive competence?

It is what a company can make, do, or perform better than its competitors.

The manager of a packaging and shipping company has set a goal of increasing the customer base by 2.5 percent in the next two months. In this scenario, the manager has set a _____.​

proximal goal

​Which of the following is a decision-making method in which members of a panel of experts respond to questions and to each other until an agreement is reached on how a specific issue should be handled?

Delphi technique

​Which of the following is a disadvantage of planning?

It creates a false sense of certainty.

​Management by objectives is a management technique often used to develop and carry out _____.

tactical plans

​The Delphi technique is a decision-making method in which group members cast votes to select solutions.


Strategic reference points are the less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs.


According to portfolio strategy, the more businesses in which a corporation competes, the larger its overall chances of failing.


Sanfase, a technology company in Rockbourne, manufactures microprocessors for computers. Its product is a lot more powerful than its competitors. This scenario is an example of competitive inertia.


​Which of the following statements is true of direct competition?

It is determined by two factors: market commonality and resource.

​_____ is a measure of the intensity of competitive behavior among companies in an industry.

Character of the rivalry

​Organizations can achieve a competitive advantage by using their resources to _____.

provide greater value for customers than competitors can

​Omega Corp. has a goal of increasing its production and reducing its overhead costs. To achieve this goal, the company has developed four alternate action plans. Its idea is to monitor how these plans work and then invest more in the plan that shows maximum results. This type of planning that allows for flexibility is known as _____.

options-based planning

​_____ are standing plans that indicate the specific steps that should be taken in response to a particular event.


Growth, stability, and retrenchment are all types of portfolio strategies.


​The nominal group technique typically produces better decisions than the devil’s advocacy and dialectical inquiry approaches.


A situational analysis is an assessment of the strengths and weaknesses in an organization’s internal environment and the opportunities and threats in its external environment.


​The more criteria a potential solution meets, the better that solution will be.


Imperfectly imitable resources are those resources that are impossible or extremely costly or difficult to duplicate.


​Which of the following best defines strategic dissonance?

​It is a discrepancy between a company’s intended strategy and the strategic actions taken by managers while implementing that strategy.

​Which of the following best defines competitive inertia?

​It is a reluctance to change strategies or competitive practices that have been successful in the past.

​Daniel has started a small shoe manufacturing company. He does not want the best equipment at the moment, so he is using equipment that is good enough to work with. In this scenario, Daniel is _____.


​_____ are responsible for the creation of tactical plans

Middle managers

​The BCG matrix starts by recommending that while the substantial cash flows from cash cows last, they should be reinvested in stars to:

help them grow even faster and obtain even more market share.

​Which of the following is a benefit of planning?

It gives direction to managerial efforts.

​The first step in planning is to develop effective action plans.


Which of the following statements is true of the BCG matrix?

​It is used to categorize a corporation’s businesses by growth rate and relative market share.

​_____ refers to the emotional reactions that can occur when disagreements become personal rather than professional.

A-type conflict

A _____ is a type of operational plan that saves managers time because once the plan is created, it can be used repeatedly to handle frequently recurring events.

standing plan

​A(n) _____ is a competitive countermove, prompted by a rival’s attack, to defend or improve a company’s market share or profit.


​_____ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.

Sustainable competitive advantage

Claire is faced with an issue and wants to come up with a rational decision regarding the issue. Which of the following steps should Claire take first in order to make a rational decision?

​Defining the problem

Top management is responsible for developing _____.

​strategic plans

A competitive advantage becomes a sustainable competitive advantage when:

other companies cannot duplicate the value a firm is providing to customers.

Which of the following is a core capability of a company that determines how efficiently inputs can be turned into outputs?

Problem-solving processes

​A drawback of planning is that:

it causes detachment, which leads planners to plan for things they do not understand.

​During a discussion about the budget for a project, the discussion gets personal between two managers of Trion LLC. They digress from the topic and start venting their anger on each other. In this scenario, the managers have _____ conflict.


​In the context of adaptive strategies, which of the following best describes prospectors?

​They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.

Management is defined as solving organizational problems.


​As a supervisor at an automobile service center, Jacob is bossy, arrogant, and insensitive to the needs of his subordinates. He is unable to delegate tasks effectively. This scenario illustrates that Jacob has the characteristics of a(n):


​Providing a great shopping experience to customers is one of the important objectives of Purple Fashions Inc., a clothing store. To achieve this objective, the company has a team of committed customer service professionals whose job is to ensure that customers get exactly what they want. This scenario illustrates that Purple Fashions is trying to achieve _____.

organizational effectiveness

​One of the most commonly used operations management tool is cognitive mapping, which is used to better understand the psychology of the workers in an organization.


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


​According to the _____, the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.

​the contingency approach

_____ is the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create.​

Behavioral addition

​Managers feel confident that they can understand, predict, and react to the external forces affecting their businesses when:

resource scarcity is low.

​The managers at Alpha Corp. are closely observing trends in the industry. They are trying to identify the factors that might have a significant influence on Alpha’s business operations. Which of the following concepts is illustrated in the scenario?

Environmental scanning

The US Sentencing Commission Guidelines for Organizations cover offenses related to invasion of privacy.


​According to the US Sentencing Commission Guidelines for Organizations, which of the following steps should be followed immediately after the standards and procedures for an effective compliance program have been established?

Upper-level managers should take charge of the program.

Which of the following factors should be taken into account when determining the ethical intensity of an action?

Temporal immediacy

​Empowering workers means permanently passing decision-making authority and responsibility from managers to workers.


In the storming stage of team development, team members will have accepted team goals, be operating as a unit, and, as indicated by the increase in performance, be working together effectively.


Managers influence customer satisfaction through employee satisfaction.


​According to Stanford University business professor Jeffrey Pfeffer, which of the following ideas is used by managers in top-performing companies?

Self-managed teams

Technical skills are more important for top managers and middle managers than they are for lower-level managers.


​According to Mary Parker Follett, _____ involves invention.


​When viewed in historical context, Weber’s ideas about bureaucracy show that _____.

​fairness supplanted favoritism in organizations

​In a bottle-manufacturing company, the employees were divided into two teams to foster competition in order to increase production. Each team produced 100 bottles per day. When the managers of the company integrated the two teams into one, they found that the numbers of bottles produced per day was 300. This was due to the increased division of labor and coordination among the employees. This approach is an example of _____.


​Which of the following is a sociocultural component in the general environment of a book publisher that can indirectly influence how it does business?

A trend toward less leisure time

​_____ is the degree to which a company relies on a provider because of the importance of the provider’s product to the company and the difficulty of finding other sources of that product.

​Supplier dependence

​Sociocultural changes in behavior affect the demand for a business’s products and services.


​A(n) _____ is a written test that estimates job applicants’ honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors.

overt integrity test

​Horizon Inc., a local electronics manufacturing company, produces a significant amount of electronic waste every day. The company disposes the waste in the ocean despite strict government regulations regarding waste disposal. This scenario illustrates that Horizon has failed to fulfill its _____.

legal responsibility

​A(n) _____ is a social responsiveness strategy in which a company does less than society expects.

​reactive strategy

​Which of the following best defines cash cows?

They are the companies that have a large share of a slow-growing market.

​Which of the following best defines delegation of authority?

It is the assignment of direct responsibility to a subordinate to complete tasks for which a manager is normally responsible.

​_____ is the location of most authority at the upper levels of an organization.

Centralization of authority

In the entrepreneur role of management, managers adapt themselves, their subordinates, and their units to change.


​A Gantt chart indicates informal communication paths.


​How did the Industrial Revolution change jobs and organizations?

Unskilled laborers running machines began to replace high-paid, skilled artisans.

​An automobile manufacturing company has developed an electric car that uses sunlight to charge itself during movement. This new invention is a development in the _____ component of the general environment of the company.


​Organizational members use_____ to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions.

organizational stories

​_____ are groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions.

​Advocacy groups

​Secondary stakeholders are important to a company because:

they can affect public perceptions about socially responsible behavior.

​Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. This is because delivering a faulty product has a _____.

high magnitude of consequences

Carrying out discretionary responsibilities is mandatory for every organization.


Rewards that depend on team performance rather than individual performance are the key to rewarding team behaviors and efforts.


​In the _____, managers share the information they have collected with their subordinates and others in a company.

​disseminator role

According to Linda Hill’s study, which of the following is true of managers’ initial expectations about their job?

They believe that they need to "be the boss."

According to Jeffrey Pfeffer, companies that invest in business ideas will create long-lasting competitive advantages that are difficult for other companies to duplicate.


​Nearly all organizations should be viewed as open systems that interact with their environments and depend on them for survival.


​Which of the following is the term used for the amount and number of raw materials, parts, and finished products that a company has in its possession?


​Supplier dependence is the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products.


Which of the following is a sociocultural component in the general environment of a fast food chain?

​Increasing popularity of weight management programs

Organizational heroes are organizational people admired for their qualities and achievements within an organization.


​Which of the following statements is true of the relationship between social responsibility and economic performance?

The costs of being socially responsible can be offset by a better product or corporate reputation.

​Which of the following is an argument put forth by economist Milton Friedman?

​It is socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes and charitable organizations.

People at the preconventional level of moral development use internalized ethical principles to solve ethical dilemmas.


Arrivers are managers who started out strong in their careers but were knocked off the fast track by the time they reached the middle to upper levels of management.


​A team leader is responsible for:

​fostering good relationships within his or her team.

​An accountant with _____ has the ability to create statements for a budget, compare the budget to the actual income statement of a particular financial year, and determine unnecessary expenses.

technical skills

​The Hawthorne Studies showed how _____ can influence work.

workers’ feelings

​Instead of taking a smoke break every two hours, employees at a local company were asked to take an extra 30 minutes for lunch. This is an example of behavioral substitution.


There is no trade-off between social responsibility and economic performance.


​Which of the following is an objective of ethics training?

To achieve credibility with employees

​Teeny Toys Inc., a chain of toy stores, has decided to donate free toys to orphanages across the United States. This scenario illustrates that the company is aiming at fulfilling its _____.

discretionary responsibility

In gainsharing programs, companies share the financial value of performance gains, such as productivity increases, cost savings, or quality improvements, with their workers.


​Trent Automobiles Inc. was expecting a large shipment of scrap metal the previous week. Since the shipment did not arrive on time, the supply manager at Trent Automobiles was forced to place another order for the same quantity of scrap metal from a local manufacturer. As a result, its car manufacturing processes got delayed and expenses increased. In this scenario, Trent Automobiles is demonstrating a lack of _____.


According to Jeffrey Pfeffer, managers in top-performing companies used increased status distinctions to achieve financial performance.


Efficiency is accomplishing tasks that help fulfill organizational objectives.


​According to Henri Fayol’s fourteen principles of management, _____ means that each employee should report to and receive orders from just one boss.

unity of command

​Two managers of a company have a conflict over resources required to complete their new projects. Both managers want the best employees of the firm to work in their projects. Eventually, they arrive at a decision where they equally share the number of top-performing employees. In the given scenario, which of the following methods have the managers used to resolve the conflict?


​_____ refers to a transaction in which one party in the relationship benefits at the expense of the other.

Opportunistic behavior

​In the context of Mintzberg’s managerial roles, managers in the _____ share information with people outside their departments or companies.

spokesperson role

​_____ are equally important at all levels of management, from team leaders to chief executive officers.

Human skills

​Which of the following is true about the chain of command in Max Weber’s bureaucracy?

People in lower positions are protected by a grievance procedure.

​According to Henri Fayol’s fourteen principles of management, order can be achieved in an organization by _____.

having a place for everyone and having everyone in his or her place

​The Hawthorne Studies showed that _____.

work performance is affected by group dynamics

​An _____ refers to the values, beliefs, and attitudes shared by organizational members.

organizational structure

​Which of the following statements is true of business confidence indices?

They show how sure actual managers are about future business growth.

​_____ is the degree of concern people have about an ethical issue.

Ethical intensity

A company must avoid communicating its code of ethics to others outside the company.


​According to the _____, the only social responsibility that businesses have is to maximize profits.

shareholder model

Which of the following is true of the right team size for good performance?

​A team must be large enough to take advantage of team members’ diverse skills and knowledge.

First-line managers are primarily responsible for facilitating team activities toward accomplishing a goal.


​Which of the following is an element of bureaucratic organizations?

Employees are hired on the basis of their technical training.

Which of the following management theorists provided managers with a better understanding of the effect group social interactions and employee satisfaction have on individual and group performance?

Elton Mayo

​The employees at Titanium Inc. have the freedom to plan their own schedules and are empowered to make decisions. They also believe in sharing common goals. The managers have high levels of trust in their employees and foster team work. These beliefs and attitudes constitute Titanium’s _____.

organizational culture

​The last step in a basic model of ethical decision making is to _____.

act on the situation

​At a canning factory, new employees are instructed to wear a certain type of uniform while working around the canning machines. The description of the uniform is very detailed and specific. Which of the following kinds of standing plans is described in this scenario?

​Rules and regulations

Toasty Inc., a chain of fast food restaurants, uses the same recipes, menu, and policies in all its branches throughout the world. This is an example of global consistency.


​Which of the following statements is true of self-designing teams?

They control work tasks and team membership.

​After Hayworth Publishers realized that it was incurring losses, it set new objectives. These objectives were to increase revenues by at least five percent and reduce net losses by at least 80 percent. In this scenario, which of the following management functions is involved in setting these goals and helping the company meet them?


​According to Henri Fayol’s fourteen principles of management, which of the following is true of unity of direction?

One person and one plan should be used in deciding the activities to be carried out.

​_____ developed the fourteen principles of management.

Henri Fayol

​The Gilbreths used motion picture films to analyze jobs.


​Which of the following statements is true of environmental uncertainty?

It is highest when environmental change is extensive.

Nonprofits, partnerships, and labor unions are not covered by the US Sentencing Commission Guidelines for Organizations.


​Philip works at a graphic designing firm. He can efficiently work on various graphic designing software. He can create visuals and illustrations as per clients’ requirements. This scenario illustrates that Philip has _____.

technical skills

​According to Chester Bernard, people will be indifferent to managerial directives or orders if they _____.

are consistent with the purpose of an organization

Many people in Rhenasia are spending less as there are only few good-paying jobs in the country. Many businesses in the country are adversely affected as the purchasing power of consumers has drastically reduced. The environmental characteristic that is affecting businesses in Rhenasia is associated with the _____.

economy of the country

​The US Sentencing Commission Guidelines for Organizations impose smaller fines on companies that:

voluntarily disclose illegal activities to federal authorities.

Ethics training becomes more credible when top managers teach the initial ethics classes to their subordinates who in turn teach their subordinates.


​Red Spark Inc., a multinational electronics manufacturer, recently came under close scrutiny after it was involved in a major money laundering scam. The scam had adversely affected the careers of more than two hundred employees of Red Spark despite the fact that they were not involved in the scam. This scenario illustrates that the scam had a:

high magnitude of consequences.

​Jared, the operations head at Cerise Confectionery, showed gratitude to his employees by hosting an employee appreciation day. In this scenario, Jared used the management function of _____ to boost the morale of his employees.


​Robert is a manager at Beta Corp. Many of his subordinates mention that they find it very easy to work and communicate with Robert. According to them, Robert is a good listener and communicates his ideas effectively. Moreover, he is sensitive to the feelings of others and encourages them to express their opinions. This scenario illustrates that that Robert has good _____.

human skills

A major change that took place during the Industrial Revolution was that highly skilled artisans took over the jobs of low-skilled laborers.


​For most of recorded history, information has been costly, difficult to obtain, and slow to spread.


​A _____ approach typically involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and creating controversy that is likely to receive extensive news coverage.

media advocacy

While setting up his new office, an attorney ordered thick, frieze carpets for the floor. However, the building inspector had him remove the expensive carpeting. The building inspector stated that according to federal regulations, the office must be wheelchair accessible as it is a public area. He further explained that since wheelchairs do not maneuver well in thick, frieze carpeting, the carpets had to be removed and be replaced with smooth-textured carpets that do not restrict wheelchair maneuverability. This scenario illustrates how a company is influenced by the _____ component of its specific environment.

​industry regulation

​When Ruth was hired by Graham Services Inc. to head its customer service operations, she was told that her role involved supervising the work of her employees and ensuring that they did their jobs well. Ruth’s job is related to:


As the chief executive officer of Hayden Corp., Kim found an effective way to reward high-performing employees and boost their morale during an economic downturn. Which of the following management functions was Kim engaged in?


​Redd Publications Inc. has been buying ink cartridges and printing papers from Haven Corp. for several years. Both companies make an effort to keep their transactions fair and transparent. This has helped them maintain mutually beneficial business ties. It can be said that Redd Publications and Haven exhibit _____ toward each other.

relationship behavior

Opportunistic behavior focuses on establishing a mutually beneficial, long-term relationship between buyers and suppliers.


Which of the following is a component of the specific environment of an organization?


Organizational culture is key to fostering ethical decision making.


​According to Linda Hill’s study, after their first year of managerial experience, managers tend to:

use positive reinforcement.

The management function of leading involves determining organizational goals and a means for achieving them.


​According to Chester Barnard, which of the following statements is true about a zone of indifference?

In this zone, managerial requests are automatically accepted.

​Gantt charts were revolutionary in the era of seat-of-the-pants management because of the detailed planning information they provided.


​Companies with strong cultures tend to perform well when they need to adapt to dramatic changes in their external environments.


​Which of the following is a political/legal trend in the general environment of a hospital?

​Regulations concerning the disposal of biological wastes

The principle of distributive justice is designed to protect the poor, the uneducated, and the unemployed.


​Which of the following is a characteristic of derailers?

They are abrasive and intimidating.

According to Kohlberg’s stages of moral development, people at the _____ make decisions that are based on selfish reasons.

preconventional level

For a code of ethics to encourage ethical decision making and behavior in a company, _____.

the management must develop practical ethical standards and procedures specific to the company’s line of business

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