BUS 302 Quiz Answers Complete Exam COMPILATION.

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 ...

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 ____. stretch goals ____ occurs when workers withhold their efforts and fail to perform their share of the work. Social loafing ____ describes the average level of ability, experience, personality, or any other factor on a team. Team level Which of the following is one of the stages that teams pass through as they develop and grow, rather than decline? performing Which of the following types of teams has the authority to change their composition as well as all of their tasks and work methods? self-designing teams A(n) ____ is defined as a team composed of geographically and/or organizationally dispersed coworkers who use telecommunications and information technologies to accomplish an organizational task. virtual team ____ is the extent to which team members are attracted to a team and motivated to remain with it. Cohesiveness • Question 9 0 out of 3 points A group in Great Britain has been established to improve the employment, retention, and promotion prospects of black and other ethnic minorities as well as women in the Fire and Rescue Service, which at present has a largely white, male demographic. At its inception, this group was in the ____ stage of team development. Answer storming forming • Question 10 3 out of 3 points The ____ is created to complete specific, one-time projects or tasks within a limited time. Answer project team project team • Question 11 3 out of 3 points An organization engaged in ____ its work team members is training them in how to do all or most of the jobs performed by the other team members. Answer cross training cross training • Question 12 0 out of 3 points The highest level of team autonomy is found in ____. Answer employee involvement teams self-designing teams • Question 13 3 out of 3 points The least amount of team autonomy is found in ____. Answer traditional work groups traditional work groups • Question 14 3 out of 3 points ____ is a compensation system in which companies share the financial value of performance gains such as productivity, cost savings, or quality with their workers. Answer Gainsharing Gainsharing • Question 15 3 out of 3 points Team rewards that depend on ____ are the key to rewarding team behaviors and efforts. Answer team performance rather than individual performance team performance rather than individual performance • Question 16 3 out of 3 points Which of the following training methods is most appropriate for imparting information or knowledge to trainees? Answer lectures and planned readings lectures and planned readings • Question 17 3 out of 3 points A ____ is a performance appraisal process in which feedback is obtained from the boss, subordinates, peers, and co-workers as well as the employees themselves. Answer 360-degree feedback 360-degree feedback • Question 18 3 out of 3 points A ____ is a purposeful, systematic process for collecting information on the important work-related aspects of a job. Answer job analysis job analysis • Question 19 3 out of 3 points ____ is intentional discrimination that occurs when people are purposefully not given the same hiring, promotion, or membership opportunities because of their race, sex, age, ethnic group, national origin, or religious beliefs. Answer Disparate treatment Disparate treatment • Question 20 3 out of 3 points ____ is the process of finding, developing, and keeping the right people for the company. Answer Human resource management Human resource management • Question 21 3 out of 3 points Which of the following types of tests accurately predicts job performance in almost all kinds of jobs? Answer cognitive ability tests cognitive ability tests • Question 22 3 out of 3 points ____ are procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to uncover negative, job-related background information not provided by applicants. Answer Background checks Background checks • Question 23 3 out of 3 points Two of the most important results of a job analysis are ____. Answer job descriptions and job specifications job descriptions and job specifications • Question 24 3 out of 3 points ____ interviewing typically leads to much more accurate hiring decisions (i.e., correctly predicting which job applicants will perform better, and therefore should be hired). Answer Structured Structured • Question 25 0 out of 3 points Which of the following is a direct (rather than indirect) measure of job applicants' capability to do the job? Answer cognitive ability tests work sample tests • Question 26 3 out of 3 points ____ is the form of sexual harassment in which employment outcomes such as hiring, promotion, or simply keeping one's job depend on whether an individual submits to sexual harassment. Answer Quid pro quo sexual harassment Quid pro quo sexual harassment • Question 27 3 out of 3 points From a legal perspective, there are two kinds of sexual harassment. They are ____. Answer quid pro quo and hostile work environment quid pro quo and hostile work environment • Question 28 0 out of 3 points When a CEO opened the nationwide sales force meeting with a crude sexually explicit joke it was an example of ____. Answer an unwelcome sexual advance sexual harassment • Question 29 3 out of 3 points What is the primary advantage of the structured interview? Answer all applicants are asked the same questions all applicants are asked the same questions • Question 30 3 out of 3 points The term ____ refers to both the financial and nonfinancial rewards organizations give employees in exchange for their work. Answer compensation compensation 1. Perceptual filters may occur as the result of ____. A. stimulus-based differences B. physiology-based differences C. situation-contextual differences D. personality-based differences E. all of these Points Earned: 1/1 D Your Response: D 2. The steps in the basic perception process include all of the following EXCEPT ____. A. attention B. organization C. analysis D. interpretation E. retention See Exhibit 15.1. Points Earned: 1/1 C Your Response: C 3. ____ is the tendency to notice and accept objects and information consistent with our values, beliefs, and expectations while ignoring, screening out, or not accepting inconsistent information. A. Selective perception B. Kinesics C. Closure D. Attribution E. The mirror effect Points Earned: 1/1 A Your Response: A 4. According to attribution theory, the defensive bias makes workers more likely to attribute their performance problems to ____. A. external attributions B. personal causes C. an internal locus of control D. the absence of unity of command E. none of these Points Earned: 1/1 A Your Response: A 5. ____ is the tendency to overestimate our value by attributing successes to ourselves (internal causes) and attributing failures to others or the environment (external causes). A. Closure B. A defensive bias C. A self-serving bias D. The fundamental attribution error E. Overreward Points Earned: 1/1 C Your Response: C 6. Jergen Lindegaart is the chief executive of SAS Scandinavian Airlines. When he explained to stockholders why SAS was withdrawing from a joint venture with BMI British Midland, a United Kingdom company, he was engaged in ____. A. encoding B. feedback preparation C. feedforward D. selective filtering E. decoding Encoding is putting a message into a verbal form that can be recognized and understood by receiver(s). Points Earned: 1/1 A Your Response: A 7. The hurried communication of vague, unclear messages is a common problem associated with ____ communication A. downward B. upward C. horizontal D. informal E. dyadic Common problems with downward communication include overuse, issuing contradictory messages, hurriedly communicating vague/unclear messages, and issuing messages that indicate management’s low regard for lower-level workers. Points Earned: 1/1 A Your Response: A 8. Which of the following statements about informal communication in organizations is true? A. The informal communication channel is also called the conduit. B. Informal communication channels are primarily developed as a way to handle management that is perceived as the enemy. C. Information carried by informal communication channels is estimated to be 75 to 95 percent accurate. D. The best management strategy to controlling informal communication is to withhold information they wish to keep from employees. E. Intranets should never be used to control informal communications. Managers can embrace the grapevine and use it to keep employees better informed. Grapevines use intranets to communicate. One of the reasons grapevines are used is that they can transmit messages with speed. Points Earned: 1/1 C Your Response: C 9. ____ is a kind of one-on-one communication used by managers to improve an employee's on-the-job performance or behavior. A. Downward guidance B. Coaching C. Counseling D. Leading E. Supportive supervision Points Earned: 1/1 B Your Response: B 10. Coaching is ____. A. a method commonly used to improve how managers communicate with their subordinates B. a kind of one-on-one communication primarily used by managers in exit interviews C. a kind of one-on-one communication primarily used by managers to improve an employee's on-the-job performance or behavior D. a multilevel communication method that is used in place of negative reinforcement E. two-way communication designed to be reciprocally fulfilling Points Earned: 1/1 C Your Response: C 11. Kinesics and paralanguage are two kinds of ____. A. communication channels B. perceptual errors C. verbal communication D. nonverbal communication E. grapevines Points Earned: 1/1 D Your Response: D 12. During a job interview, the interviewee is trying to deceive the interviewer if the interviewee often uses his hand to cover his mouth and talks through his fingers as if hiding or trying to keep words from escaping. Putting a single finger to the mouth or (for men) stroking the mustache is a less obvious sign of deception. Interviewers can use their knowledge of these types of ____ to determine when interviewees are telling the truth. A. proxemics B. kinesics C. paralanguage D. semiotics E. pseudo-language Kinesics refers to the movement of the body and the face. Points Earned: 1/1 B Your Response: B 13. When Lilah saw her guest wrinkling her nose, she realized that she should have changed the litter in her cat box. Nose wrinkling is an example of communication through ____. A. proxemics B. kinesics C. paralanguage D. semiotics E. pseudo-language Kinesics refers to movements of the body and the face. Points Earned: 1/1 B Your Response: B 14. In nonverbal communication, ____ is the pitch, rate, tone, volume, and speaking pattern (i.e., use of silences, pauses, or hesitations) of one's voice. A. kinesics B. proxemics C. paralanguage D. pseudo-language E. semiotics Points Earned: 1/1 C Your Response: C 15. For some time, researchers have known that deceptive answers have a slower onset than honest ones. When faced with a threatening question, one may either hesitate or pause before a deceptive response. If one tends to give quick responses to other questions, this behavior might suggest deception. Researchers have found that vocal pitch rises measurably in deceptive responses. In a job interview these characteristics would be examples of ____ that may help the interviewer evaluate the job applicants. A. proxemics B. kinesics C. paralanguage D. semiotics E. pseudo-language Paralanguage refers to the pitch, rate, tone, volume, and speaking pattern (i.e., use of silences, pauses, or hesitations) of one's voice. Points Earned: 1/1 C Your Response: C 16. Managers generally like and use____ but are less receptive to using ____. A. oral communication; written communication B. written communication; oral communication C. downward communication; horizontal communication D. informal communication; formal communication E. horizontal communication; downward communication Points Earned: 1/1 A Your Response: A 17. In which of the following cases would written communication be preferable to oral communication? A. when immediate feedback is needed B. when messages are complex and ambiguous C. when messages are emotion laden D. when messages are straightforward E. when paralanguage is required Points Earned: 1/1 D Your Response: D 18. Which of the following statements about hearing and listening are true? A. Hearing and listening are synonyms. B. Hearing is the act of perceiving sounds, while listening is the act of making a conscious effort to hear. C. Hearing and listening both require paralanguage during communication transmission. D. By definition, listening is passive, and hearing is active. E. Listening is an involuntary behavior, and hearing is a voluntary behavior. By definition, listening is active, and hearing is passive. Listening is a voluntary behavior, and hearing is an involuntary behavior. By definition, hearing is not influenced by paralanguage. Points Earned: 1/1 B Your Response: B 19. Which of the following statements about listening is true? A. Most managers retain about 25 percent of what they hear. B. Listening is a voluntary behavior. C. Managers with better listening skills are more likely to be promoted. D. Managers with better listening skills are rated as better managers by their employees. E. All of these statements about listening are true. Points Earned: 1/1 E Your Response: E 20. ____ is a technique of assuming half the responsibility for successful communication by actively giving the speaker nonjudgmental feedback that shows you've accurately heard what he or she said. A. Hearing B. Dyadic communication C. Active listening D. Empathetic listening E. Synergistic communication Points Earned: 1/1 C Your Response: C 21. Stan O’Neal was hired as the CEO of Merrill Lynch to make it profitable. As he made sweeping changes in the company, he was guilty of belittling the efforts of his managers and making them feel incompetent. In other words, O’Neal engaged in ____. A. reactive criticism B. invalid feedback C. unsolicited motivation D. demotivational feedback E. destructive feedback Destructive feedback disapproves without any intention of being helpful and almost always causes a negative reaction in the receiver. Points Earned: 1/1 E Your Response: E 22. Feedback is more likely to be destructive than constructive when it is ____. A. immediate B. judgmental C. influenced by situational contexts D. problem-oriented E. focused on specific behaviors Points Earned: 1/1 B Your Response: B 23. The last step of empathetic listening requires managers to ____. A. ask for clarification B. summarize what the speaker has said C. respond with feelings and then facts D. engage in problem identification E. paraphrase what has been said Points Earned: 1/1 C Your Response: C 24. ____ use Web- or software-based discussion tools that are available across the company to permit employees to easily ask questions and share knowledge with each other. A. Intranet chat rooms B. Internet grapevines C. Corporate talk shows D. collaborative discusion sites E. Intranet grapevines Points Earned: 1/1 D Your Response: D 25. An Industry Week survey of 845 line managers from diverse organizations found that only 29 percent of first-level supervisors thought that their organization encouraged employees to express opinions openly. This means that the overwhelming majority of these supervisors engage in ____. A. organizational silence B. organizational filtering C. negative grapevining D. lower level filtering E. arrested communication Organizational silence is the withholding of information about organizational problems or issues by employees. Points Earned: 1/1 A Your Response: A 26. Which of the following gives top managers a quick, convenient way to address their work forces via oral communication? A. televised speeches and meetings B. videotaped speeches and meetings C. broadcast voice mail D. corporate talk shows E. all of these Broadcast voice mail allows the sending of a recorded message to everyone in the organization. Points Earned: 1/1 C Your Response: C 27. Urban Legends Urban legends and Internet scams are a real problem for some businesses. Gerber Baby Foods was flooded with 1 million letters and 80,000 phone calls from parents responding to an e-mail about a phony class-action lawsuit. Another urban legend about Costa Rican flesh-eating bacteria that affected banana shipments cost that industry more than $30 million . Procter & Gamble had to deal with claims that its Febreeze product contained Agent Orange, a dangerous chemical. Many companies choose to ignore these myths created by angry customers or rabble-rousers, but experts believe this is the worst possible action to take. Companies should instead do everything possible to reassure its customers. Refer to Urban Legends. E-mail users who received the e-mail about P&G’s Febreeze would have used ____ to understand the message. A. physical stimuli B. intranets C. encoding D. decoding E. information diffusion Points Earned: 1/1 D Your Response: D 28. Urban Legends Urban legends and Internet scams are a real problem for some businesses. Gerber Baby Foods was flooded with 1 million letters and 80,000 phone calls from parents responding to an e-mail about a phony class-action lawsuit. Another urban legend about Costa Rican flesh-eating bacteria that affected banana shipments cost that industry more than $30 million . Procter & Gamble had to deal with claims that its Febreeze product contained Agent Orange, a dangerous chemical. Many companies choose to ignore these myths created by angry customers or rabble-rousers, but experts believe this is the worst possible action to take. Companies should instead do everything possible to reassure its customers. Refer to Urban Legends. Top managers who encouraged subordinates to do everything in their power to assure customers that Internet myths about their companies were false engaged in ____. A. downward communication B. information diffusion C. upward communication D. establishing a grapevine E. horizontal communication Points Earned: 1/1 A Your Response: A 29. Urban Legends Urban legends and Internet scams are a real problem for some businesses. Gerber Baby Foods was flooded with 1 million letters and 80,000 phone calls from parents responding to an e-mail about a phony class-action lawsuit. Another urban legend about Costa Rican flesh-eating bacteria that affected banana shipments cost that industry more than $30 million . Procter & Gamble had to deal with claims that its Febreeze product contained Agent Orange, a dangerous chemical. Many companies choose to ignore these myths created by angry customers or rabble-rousers, but experts believe this is the worst possible action to take. Companies should instead do everything possible to reassure its customers. Refer to Urban Legends. Many urban legends are transmitted through the Internet, which could be described as a(n) ____. A. information conduit B. communication medium C. information medium D. transfer channel E. paralanguage conduit Points Earned: 1/1 B Your Response: B 30. JetBlue JetBlue Airways has had tremendous success by offering direct flights, low fares, wider leather seats, satellite TV in every seat and great customer service. Modeled after Southwest Airlines, JetBlue has the lowest costs in the industry at 6.4 cents per passenger mile. But as its new planes age, its costs will rise, as will the wages it pays its pilots, flight attendants, and mechanics. With only two successful new airlines in the last 25 years, the challenge for JetBlue will be to continue its success as it ambitiously grows from 73 planes and 6,500 employees to 290 planes and 25,000 employees over the next five years. Key to meeting those goals is solid communication. As companies like JetBlue grow, managers must be good one-on-one communicators but must also learn how to communicate effectively with a larger number of people throughout an organization. This is why founder and CEO David Neeleman and President Dave Barger speak with every new class of employees as they come through JetBlue’s structured orientation process. On the first day of orientation, Barger teaches the new hires about JetBlue’s brand while Neeleman shows them how JetBlue earns its money and the role each employee plays in the process. Another part of JetBlue’s strategy to communicate and reinforce its organizational culture is a program called Principles of Leadership (POL). POL is a five-day training program completely taught by JetBlue’s managers from all levels of the company from the very top to the very bottom. As they teach, JetBlue’s managers share real world stories that illustrate ways in which company managers and employees have practiced or violated the five principles of JetBlue’s culture. In general, these stories demonstrate when it is proper and improper to break company rules to serve customers. For example, a JetBlue pilot once bought several dozen McDonald’s Happy Meals for the kids on his plane. While this was a violation of company spending guidelines, buying those Happy Meals adhered to JetBlue’s cultural principle of “Doing the right thing,” because the plane was stuck on the ground without food, and the kids on board were hungry. But effective leaders don’t just communicate to others; they also make themselves accessible so that they can hear what others, particularly customers and employees, are feeling and thinking about their organization. At JetBlue, founder and CEO David Neeleman uses frequent informal meetings and surprise visits to listen to his customers and employees. On an almost daily basis, Neeleman can be found on a JetBlue flight talking to customers. Neeleman will typically use the plane’s public address system to introduce himself and say that he wants to hear any feedback, good or bad, that they have about the airline. Passengers frequently offer advice on where JetBlue should offer new routes and service, but they also complain about the food, meaning the lack of it (just cookies, snacks, and biscotti). To this complaint, Neeleman says, “We found out most people would rather have a TV than a meal.” But, most importantly, Neeleman listens, writing thoughts and customer comments on airplane napkins that he stuffs in his pockets to be turned into organizational to-do’s once the flight is over. Refer to JetBlue. When CEO Neeleman uses the plane’s public address system to introduce himself and says that he wants to hear any feedback, good or bad, that customers or employees have about the airline, he is looking for ____ feedback. A. valid B. motivational C. constructive D. participative E. democratic Constructive feedback is defined as that which is intended to be helpful, corrective and/or encouraging. Points Earned: 1/1 C Your Response: C The primary benefit of the ____ paradigm is that it generally brings about fairer treatment of employees and increases demographic diversity. Answer discrimination and fairness paradigm • Question 2 3 out of 3 points Which of the following might account for the disparities between the percentages of African, Hispanic, and Asian Americans among the general population and their smaller representation in management positions? Answer racial or ethnic discrimination in the workplace racial or ethnic discrimination in the workplace • Question 3 0 out of 3 points Which of the following is NOT one of the Big Five personality dimensions? Answer agreeableness empathy • Question 4 3 out of 3 points Which of the following is one of the Big Five personality dimensions? Answer emotional stability emotional stability • Question 5 3 out of 3 points The fastest-growing population group in the United States is ____. Answer Hispanic-Americans Hispanic-Americans • Question 6 3 out of 3 points Companies in several industries are now waking up to the market needs of gays and lesbians. Through diversity programs, organizations are actively recruiting and hiring gays and lesbians to ____. Answer drive business growth drive business growth • Question 7 3 out of 3 points The glass ceiling is most closely associated with ____. Answer ethnic, racial, and gender discrimination ethnic, racial, and gender discrimination • Question 8 3 out of 3 points ____ helps companies grow by improving the quality of problem solving and improving marketplace understanding. Answer Diversity Diversity • Question 9 3 out of 3 points Unlike ____, which punishes companies for not achieving specific gender and race differences in their work forces, ____ programs seek to benefit both organizations and their employees by encouraging organizations to value all kinds of differences. Answer affirmative action; diversity affirmative action; diversity • Question 10 3 out of 3 points ____ is the relatively stable set of behaviors, attitudes, and emotions displayed over time that makes people different from each other. Answer Personality Personality • Question 11 3 out of 3 points ____ consists of differences such as personality and attitudes that are learned only through extended interaction with others and are communicated through verbal and nonverbal behaviors. Answer Deep-level diversity Deep-level diversity • Question 12 3 out of 3 points When AT&T hired a female as its president, it was evidence that AT&T does not have a(n) ____ to prevent women from rising to leadership positions. Answer glass ceiling glass ceiling • Question 13 3 out of 3 points To make sure that people of all racial and ethnic backgrounds have the same opportunities, companies should ____. Answer survey employees about their perceptions and satisfaction survey employees about their perceptions and satisfaction • Question 14 3 out of 3 points The term ____ refers to the degree to which someone is organized, hard-working, responsible, persevering, thorough, and achievement-oriented. Answer conscientiousness conscientiousness • Question 15 3 out of 3 points A(n) ____ is a formal assessment that measures employee and management attitudes, investigates the extent to which people are advantaged or disadvantaged with respect to hiring and promotions, and reviews companies' diversity-related policies and procedures. Answer diversity audit diversity audit • Question 16 3 out of 3 points Which of the following is an example of an intrinsic reward? Answer a sense of achievement a sense of achievement • Question 17 3 out of 3 points Which of the following is NOT a type of reinforcement contingency? Answer overreward overreward • Question 18 3 out of 3 points In equity theory, ____ are others with whom people compare themselves to determine if they have been treated fairly. Answer referents referents • Question 19 3 out of 3 points ____ are the rewards associated with performing a task or activity for its own sake. Answer Intrinsic rewards Intrinsic rewards • Question 20 3 out of 3 points Reinforcement theory says behavior is a function of ____. Answer its consequences its consequences • Question 21 3 out of 3 points According to Don Vlcek, a former Domino's Pizza vice president, "To achieve results, you've got to properly define the goal—and that's not always easy. Vague goals are worthless. But 'increase productivity by 12 percent within three weeks'—that is a clear, useful goal.” Vlcek is discussing ____. Answer goal specificity goal specificity • Question 22 3 out of 3 points According to the expectancy theory, ____ affect the conscious choices that people make about their motivation. Answer valence, expectancy, and instrumentality valence, expectancy, and instrumentality • Question 23 3 out of 3 points France has 14 million smokers. More importantly, smokers in France are closely associated with the French culture. So when the French government waged a war against smoking, it set as its ____ to reduce smoking by 30 percent by the end of the decade. Answer goal goal • Question 24 3 out of 3 points According to ____, people will be motivated when they perceive they are being treated fairly. Answer equity theory equity theory • Question 25 3 out of 3 points ____ is the perceived degree to which outcomes and rewards are fairly distributed or allocated. Answer Distributive justice Distributive justice • Question 26 3 out of 3 points The two basic kinds of inequity are ____. Answer underreward and overreward underreward and overreward • Question 27 3 out of 3 points The two parts of reinforcement are ____. Answer reinforcement contingencies and schedules of reinforcement reinforcement contingencies and schedules of reinforcement • Question 28 3 out of 3 points According to expectancy theory, in order for people to be highly motivated, ____ must be high. Answer instrumentality instrumentality • Question 29 3 out of 3 points According to Alderfer's ERG theory, the lowest-order need is ____. Answer existence existence • Question 30 3 out of 3 points ____ is a reinforcement strategy which weakens a behavior over time because the behavior has no consequences, positive or negative. Answer Extinction Extinction Sunday, July 28, 2013 10:16:24 AM EDT Which of the following is NOT a kind of cost associated with maintaining an inventory? amortization In TQM terms, ____ is an organizational goal to provide products or deliver services that meet or exceed customers’ expectations. customer satisfaction The easier it is to maintain a working product or fix a broken product, the more ____ that product appears. serviceable ____ productivity is a measure of performance that indicates how much of a particular kind of input it takes to produce an output. Partial ____ is a measure of performance that indicates how many inputs it takes to produce or create an output. Productivity Which of the following is NOT a kind of inventory a manufacturer would keep in stock? nonrenewable materials The American Society for Quality defines quality as ____. a product free of deficiencies, or the characteristics of a product or service that satisfy customers’ needs The three principles that characterize TQM are continuous improvement, customer focus and satisfaction, and ____. teamwork The average time between breakdowns (for machinery) is referred to as ___? Answer reliability ____ is the number of times per year that a company sells or replaces its average inventory. Answer Inventory turnover ____ is a ticket-based system that indicates when to reorder inventory. Kanban This is a description of what happened to a patron at Royal Mail (the United Kingdom’s equivalent of the USPS). "In the 15 minutes I waited in line, during which I shuffled forward one yard and two places, I had ample opportunity to watch what the other three staff were doing. They were busy all right, but the main task was counting each stamp in their folders. In this vital work, two of the three were overseen by another member of staff. There was no eye contact with the waiting customers." Assuming this experience is typical, the Royal Mail needs to engage in ____. Answer service recovery Pamela makes cloth dolls, which she sells to friends and relatives. Her total inventory includes over 200 yards of fabric, 100 yards of ribbon, a box of 500 eyes, stuffing, 20 dolls in various stages of completion, and 15 completed dolls. How many items are in Katian's finished goods inventory? 15 The term ____ refers to restoring customer satisfaction to strongly dissatisfied customers. service recovery An article addressed to nurses who work in intensive care emphasize practices affirming the patient's intrinsic value and individual personality One method to affirm the patient's intrinsic value is to demonstrate empathy A company expressing its ongoing commitment to continuous product improvement and premium quality products is committed to ____. total quality management Most companies define product ____ in terms of how easy or difficult it is to fix a product. Answer serviceability The ability to consistently perform a service well is referred to as service ____. Answer reliability A product’s quality is determined by its ____. durability, reliability, and serviceability The product quality characteristic of ____ is defined as the mean time before product failure. Answer durability ____ inventories include the basic inputs in a manufacturing process. Raw materials Which of the following is an important characteristic of a quality product? reliability Royal Mail (the United Kingdom's equivalent of the USPS) needed to transform the image its customers had of the organization. A key part of the transformation was to permanently pass decision-making authority and responsibility to its workforce and allow them to develop and implement their ideas on how to improve performance and service to customers. According to one manager, "We understand now that people who work here care as much as managers do about the business." The Royal Mail used ____ to improve service. empowerment ____ is a deviation in the form, condition, or appearance of a product from the quality standard for that product. Variation Hattie Cao operates Peachy Keen and sells her products through catalog orders. The small company has three employees. It produces and sells seven kinds of peach pies, three kinds of peach cake, two kinds of peach cookies, and a peach salsa. She normally keeps 250 jars of salsa in stock, but she noticed today that she has more than 500 bottles in her inventory. Cao decided to reduce her inventory by lowering her price. Her plan to get rid of excessive inventory was so successful that she found herself completely sold out in just a couple of days. In other words, Cao experienced ____. a stockout Xerox is a firm believer in total quality management (TQM). Anne Mulcahy, the president of Xerox, was quoted as saying, "TQM may help employees figure out how to solve a specific problem. But the really big payoff comes when they share that solution with others." In her statement, Mulcahy was promoting which characteristic of TQM? teamwork ISO 14000 is a series of international standards for managing, monitoring, and minimizing an organization's harmful effect on the environment The three basic measures of inventory are inventory turnover, average aggregate inventory, and ____. weeks of supply Studies clearly show that customers care more about ____ than anything else when buying services. reliability Which of the following is NOT a criterion on which companies are judged when applying for the Baldrige National Quality Award? competitive advantage Downtime and lost efficiency are both examples of ____. setup costs Massey Ferguson, a division of AGCO Corp., has introduced two new front cut mowers designed to provide a high level of serviceability. "The new mowers are targeted toward golf course, municipality and commercial cutting operations and have been designed with easy operation and safety in mind," the company said. This means the mowers ____. are easy to repair An article addressed to nurses who work in intensive care said, "Patients may feel isolated or ostracized from those around them, including medical staff, because of their condition or appearance. Practices affirming the patient's intrinsic value and individual personality will be critical to establishing trust and rapport." One method to affirm the patient's intrinsic value is to provide ____. empathy 3 out of 3 points A group in Great Britain has been established to improve the employment, retention, and promotion prospects of black and other ethnic minorities as well as women in the Fire and Rescue Service, which at present has a largely white, male demographic. At its inception, this group was in the ____ stage of team development. Answer forming forming Virtual teams ____. Answer are always self-managing teams are very flexible • Question 5 3 out of 3 points Teams can be broadly classified as either ____. functional or cross-functional • Question 6 3 out of 3 points ____ is one of the disadvantages associated with the use of work teams. Answer Social loafing Social loafing 3 out of 3 points Teams are typically required when ____. Answer tasks require multiple perspectives tasks require multiple perspectives • Question 9 3 out of 3 points The highest level of team autonomy is found in ____. Answer self-designing teams self-designing teams • Question 10 3 out of 3 points Which of the following team sizes usually provides the best performance? Answer 6 to 9 6 to 9 3 out of 3 points Which of the following is a method used for compensating employees for team participation and accomplishments? Answer gainsharing gainsharing • Question 13 3 out of 3 points The ____ is created to complete specific, one-time projects or tasks within a limited time. Answer project team project team • Question 14 3 out of 3 points Team rewards that depend on ____ are the key to rewarding team behaviors and efforts. Answer team performance rather than individual performance team performance rather than individual performance • Question 15 3 out of 3 points An organization engaged in ____ its work team members is training them in how to do all or most of the jobs performed by the other team members. Answer cross training cross training • Question 16 3 out of 3 points Which of the following types of tests accurately predicts job performance in almost all kinds of jobs? Answer cognitive ability tests cognitive ability tests • Question 17 3 out of 3 points From a legal perspective, there are two kinds of sexual harassment. They are ____. Answer quid pro quo and hostile work environment quid pro quo and hostile work environment • Question 18 3 out of 3 points The United Kingdom issued a new recruitment publication for the nation's Fire Service. The publication lists all of the qualifications needed to become a fire fighter. This recruitment pamphlet is actually a(n) ____. Answer job specification job specification • Question 19 3 out of 3 points Which of the following training methods is most appropriate for imparting information or knowledge to trainees? Answer lectures and planned readings lectures and planned readings • Question 20 3 out of 3 points Which of the following is a legal problem employers may encounter in seeking, providing, or using employment references as part of the selection process? Answer defamation lawsuits defamation lawsuits • Question 21 3 out of 3 points ____ ask raters to rate the frequency with which workers perform specific behaviors representative of the job dimensions that are critical to successful job performance. Answer Behavioral observation scales Behavioral observation scales • Question 22 3 out of 3 points Two of the most important results of a job analysis are ____. Answer job descriptions and job specifications job descriptions and job specifications • Question 23 3 out of 3 points Which of the following is an external recruiting method? Answer advertising advertising • Question 24 3 out of 3 points An ESOP is an ____. Answer employee stock ownership plan employee stock ownership plan • Question 25 3 out of 3 points Before beginning to recruit, organizations must ____. Answer conduct a job analysis conduct a job analysis • Question 26 3 out of 3 points Which of the following is an internal recruiting method? Answer career paths career paths • Question 27 3 out of 3 points ____ is the form of sexual harassment in which employment outcomes such as hiring, promotion, or simply keeping one's job depend on whether an individual submits to sexual harassment. Answer Quid pro quo sexual harassment Quid pro quo sexual harassment • Question 28 3 out of 3 points Which of the following provides employment counseling services for employees faced with downsizing? Answer outplacement services outplacement services • Question 29 0 out of 3 points Bona fide occupational qualifications would be most likely included in a(n) ____. Answer job description job specification • Question 30 3 out of 3 points ____ is intentional discrimination that occurs when people are purposefully not given the same hiring, promotion, or membership opportunities because of their race, sex, age, ethnic group, national origin, or religious beliefs. Answer Disparate treatment Disparate treatment Saturday, August 17, 2013 8:28:00 PM EDT An accountant with ________ has the ability to create a budget, compare the budget to the actual income statement, and determine unnecessary expenses. Answer technical skill technical skill • Question 2 3 out of 3 points Typical responsibilities for ________ include coordinating and linking groups, departments, and divisions within a company. Answer middle managers middle managers • Question 3 3 out of 3 points Mike Walker supervises operations on the chassis assembly line for a large vehicle manufacturer. Most of his time is spent in quality control maintenance, scheduling workers, and training new employees. Walker would be categorized as a: Answer first-line manager first-line manager • Question 4 3 out of 3 points According to Mintzberg, which role would a manager assume if she were trying to convince union members to accept a 25-cent-per-hour reduction in pay in order to keep the manufacturing plant open? Answer negotiator negotiator • Question 5 3 out of 3 points 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 from the ground¬up parts of a plastic handheld calculator. The recall was the application of which management function? Answer controlling controlling • Question 6 3 out of 3 points Nestlé was unsuccessful in early attempts to sell its chocolate in India. It discovered its chocolate bars were not suitable for the Indian markets because the candy had to sit in direct sunlight without benefit of air conditioning and became messy. Nestlé adopted an innovation strategy and developed Chocostick, a liquid chocolate, which is very popular. Solving this problem involved what management function? Answer planning planning • Question 7 3 out of 3 points According to a speech to a forum for retail leaders made by Dr. Hans-Joachim Koerber, "Sustained growth is essential. Sustaining growth is a challenge for virtually every company." Koerber is the CEO of Metro Group, Germany's largest retailer, which has more than 2,400 stores in 30 countries. What informational role did Koerber assume? Answer spokesperson spokesperson • Question 8 3 out of 3 points The informational role managers’ play when they share information they have collected with their subordinates and others in the company is called the ________ role. Answer disseminator disseminator • Question 9 3 out of 3 points Creating a competitive advantage through people relies heavily on the use of which skill to reward people for providing exceptional customer service? Answer motivation to manage motivation to manage • Question 10 3 out of 3 points 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. Answer top manager top manager • Question 11 3 out of 3 points A manager engaged in the management function of ________ is determining organizational goals and the means for achieving them. Answer planning planning • Question 12 3 out of 3 points After their first year of managerial experience, managers tend to: Answer use more positive reinforcement use more positive reinforcement • Question 13 3 out of 3 points Typical responsibilities for ________ include setting objectives consistent with organizational goals and then planning and implementing the subunit strategies for achieving these goals. Answer middle managers middle managers • Question 14 3 out of 3 points ________ is the accomplishment of tasks that help fulfill organizational objectives. Answer Effectiveness Effectiveness • Question 15 3 out of 3 points ________ are responsible for creating a positive organizational culture through language and action. Answer Top managers Top managers Week 1 Quiz 2 • Question 1 3 out of 3 points A(n) ________ is a set of interrelated elements or parts that function as a whole. Answer system system • Question 2 3 out of 3 points Henri Fayol is responsible for developing ________. Answer administrative management administrative management • Question 3 3 out of 3 points A systems view of management allows managers to ________. Answer deal with the complex environment in which their companies operate deal with the complex environment in which their companies operate • Question 4 3 out of 3 points According to human relations management ________. Answer success depends on treating workers well success depends on treating workers well • Question 5 3 out of 3 points Which of the following is NOT associated with Max Weber’s bureaucratic management? Answer span of management span of management • Question 6 3 out of 3 points The ________ approach to management focuses on the psychological and social aspects of work. Answer human relations human relations • Question 7 3 out of 3 points ________ occurs when workers deliberately slow down their pace or restrict their work outputs. Answer Soldiering Soldiering • Question 8 3 out of 3 points The goal of scientific management is to ________. Answer find the one best way to perform each task find the one best way to perform each task • Question 9 3 out of 3 points ________ is best known for developing the five functions of managers and the fourteen principles of management. Answer Henri Fayol Henri Fayol • Question 10 3 out of 3 points The Gantt chart ________. Answer is a chart that shows when and where tasks need to be completed so that a job can be completed in a timely fashion is a chart that shows when and where tasks need to be completed so that a job can be completed in a timely fashion • Question 11 0 out of 3 points According to Henri Fayol’s fourteen principles of management, ________ requires that each employee should report to and receive orders from just one boss. Answer unity of direction unity of command • Question 12 3 out of 3 points Which of the following is NOT an example of a commonly used operations management tool? Answer target marketing target marketing • Question 13 3 out of 3 points At about the same time as management theorists were developing scientific management principles in the United States, Max Weber was in Europe developing ________. Answer bureaucratic management bureaucratic management • Question 14 3 out of 3 points Nearly all organizations that interact with their environments and depend on them for survival are viewed as ________. Answer open systems open systems • Question 15 3 out of 3 points Which management theorist provided managers with a better understanding of the effect group social interactions and employee satisfaction have on individual and group performance? Answer Elton Mayo Elton Mayo • Question 16 3 out of 3 points Fear of a lawsuit prevents many employers from giving totally honest recommendations to former employees. This reflects a change in the ________ component of the general environment. Answer political/legal political/legal • Question 17 3 out of 3 points Which of the following is NOT a dimension of the political/legal component of the general environment that governs and regulates business behavior? Answer competitive products competitive products • Question 18 3 out of 3 points The ________ consists of the economy and the technological, socio-cultural, and political/legal trends that indirectly affect all organizations. Answer general environment general environment • Question 19 3 out of 3 points After an organization's founders are gone, the organization can use ________ to sustain its organizational culture. Answer organizational heroes organizational heroes • Question 20 3 out of 3 points In terms of external organizational environments, the ________ environment affects all organizations while the environment is unique to each company. Answer general; specific general; specific • Question 21 3 out of 3 points Technology is the ________ used to transform inputs (raw materials, information, etc.) into outputs (products or services). Answer knowledge, tools, and techniques knowledge, tools, and techniques • Question 22 3 out of 3 points Managers can use behavioral addition and behavioral substitution to ________. Answer modify corporate culture modify corporate culture • Question 23 3 out of 3 points When Susan started work at Henderson Textile Co., she was amazed at its employees who would take 30-minute restroom breaks, leave for the day at 2 p.m., and generally belittle the company's management. Such employees' actions most likely developed over time as a result of a faulty ________. Answer organizational culture organizational culture • Question 24 3 out of 3 points 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 ________. Answer behavioral substitution behavioral substitution • Question 25 3 out of 3 points The term ________ refers to the events and trends inside an organization that affect management, employees, and the organizational culture. Answer internal environment internal environment • Question 26 3 out of 3 points Over the past 20 years, which of the following is an industry that has experienced both the stable and dynamic environments predicted by punctuated equilibrium theory? Answer the airline industry the airline industry • Question 27 3 out of 3 points A high degree of buyer or seller dependence can lead to ________ in which one party benefits at the expense of the other. Answer opportunistic behavior opportunistic behavior • Question 28 3 out of 3 points Companies doing a competitive analysis typically err by ________. Answer doing an incomplete job of identifying competitors doing an incomplete job of identifying competitors • Question 29 3 out of 3 points Which of the following is a component of Coca-Cola's specific environment and will directly influence how it does business? Answer Pepsi-Cola Pepsi-Cola • Question 30 3 out of 3 points ________ is a tactic in which an advocacy group actively tries to convince consumers not to purchase a company's product or service. Answer Product boycott Product boycott Week 2 Quiz 3 • Question 1 3 out of 3 points The two general categories of stakeholders are ________ stakeholders and ________ stakeholders. Answer primary; secondary primary; secondary • Question 2 3 out of 3 points The three stages of moral development identified by Kohlberg are ________. Answer preconventional level, conventional level, and postconventional level preconventional level, conventional level, and postconventional level • Question 3 3 out of 3 points Bayer AG, Syndial SpA, Crompton Corp., DuPont Dow Elastomers, and Zeon Chemicals are all international manufacturers of rubber chemicals. They have all been indicted as participants in a price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires, and other products. These companies ignored their ________ responsibility to society. Answer legal legal • Question 4 3 out of 3 points A consumer advocacy group is critical of ads by the U.S. Postal Service (USPS) that claim its Priority Mail is a low-cost, two-day service while failing to disclose that first-class letters generally reach their destination just as quickly and for a tenth the cost. The consumer advocacy group wants the USPS to take ________ responsibility for its actions and do what is right. Answer ethical ethical • Question 5 3 out of 3 points Managers can use integrity tests to ______. Answer select and hire ethical employees select and hire ethical employees • Question 6 3 out of 3 points ________ stakeholders are groups, such as shareholders, employees, customers, suppliers, governments, and local communities, on which the organization depends for long-term survival. Answer Primary Primary • Question 7 3 out of 3 points ________ integrity tests indirectly estimate employee honesty by measuring psychological traits. Answer Personality-based Personality-based • Question 8 3 out of 3 points According to Kohlberg's model of moral development, people at the ________ use internalized ethical principles to solve ethical dilemmas. Answer postconventional level postconventional level • Question 9 3 out of 3 points According to the U.S. Sentencing Commission Guidelines, what is one method used to determine the level of the offense (i.e., the seriousness of the problem)? Answer examining the loss incurred by the victims examining the loss incurred by the victims • Question 10 3 out of 3 points A company implementing a(n) ________ strategy would demonstrate the greatest willingness on the part of the company to meet or exceed society's expectations. Answer proactive proactive • Question 11 3 out of 3 points The last step in the basic model of ethical decision making is to ________. Answer act act • Question 12 3 out of 3 points When addressing issues of high ________, managers are more aware of the impact their decisions have on others, they are more likely to view the decision as an ethical decision, and they are more likely to worry about doing the right thing. Answer ethical intensity ethical intensity • Question 13 3 out of 3 points ________ are the expectations that a company will voluntarily serve a social role beyond its economic, legal, and ethical responsibilities. Answer Discretionary responsibilities Discretionary responsibilities • Question 14 3 out of 3 points After identifying the problem in the basic model of ethical decision-making, the next step is to ________. Answer identify the constituents identify the constituents • Question 15 3 out of 3 points Secondary stakeholders are important to a company because ________. Answer they can affect public perceptions and opinions they can affect public perceptions and opinions • Question 16 3 out of 3 points The ________ approach to decision-making is a method in which an individual or a subgroup is assigned the role of a critic. Answer devil's advocacy devil's advocacy • Question 17 3 out of 3 points ________ are types of standing plans. Answer Policies and procedures Policies and procedures • Question 18 0 out of 3 points According to the S.M.A.R.T. guidelines, goals should be ________. Answer Aggregated Timely • Question 19 3 out of 3 points After earning $8 billion in profit, Royal Dutch/Shell decided to strive to double its profits within the next five years. Which classical management function would be instrumental in achieving this goal? Answer planning planning • Question 20 3 out of 3 points The use of ________ in planning produces a false sense of certainty and is often cited as one of the major pitfalls of planning. Answer assumptions assumptions • Question 21 3 out of 3 points ________ is responsible for developing strategic plans that make clear how the company will serve customers and is responsible for developing strategic plans that make clear how the company will serve customers and position itself against competitors in the next two to five years. Answer Top management Top management • Question 22 3 out of 3 points ________ can help organizations to maintain flexibility as they plan. Answer Options-based planning Options-based planning • Question 23 3 out of 3 points What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturer? Answer single-use plan single-use plan • Question 24 3 out of 3 points Which of the following is a possible outcome of planning? Answer Planning may harm individual and organizational performance. Planning may harm individual and organizational performance. • Question 25 3 out of 3 points Who is primarily responsible for developing operational plans? Answer lower-level managers lower-level managers • Question 26 3 out of 3 points At a canning factory, new employees were instructed never to wear loose-fitting clothes when working around the canning machine. What kind of a standing plan is described in this example? Answer rules and regulations rules and regulations • Question 27 3 out of 3 points For options-based planning to work, the organization must ________. Answer have slack resources have slack resources • Question 28 3 out of 3 points Which of the following is a commonly used method for increasing goal commitment? Answer encouraging worker participation in goal setting encouraging worker participation in goal setting • Question 29 3 out of 3 points In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and include evacuating buildings. What kind of a standing plan is described in this example? Answer procedures procedures • Question 30 3 out of 3 points The last step in effective planning is to ________. Answer maintain flexibility in planning maintain flexibility in planning Week 3 Quiz 4 • Question 1 3 out of 3 points McDonald's uses a ________ strategy (a kind of grand strategy) as it increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's version of a popular French grilled sandwich. Answer growth growth • Question 2 3 out of 3 points The purpose of a ________ strategy is to turn around very poor company performance by shrinking the size or scope of the business. Answer retrenchment retrenchment • Question 3 3 out of 3 points Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability? Answer existing complementary products existing complementary products • Question 4 3 out of 3 points ________ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem. Answer resources resources • Question 5 3 out of 3 points According to strategic reference point theory, managers have two basic strategic alternatives. They are ________. Answer risk-avoiding strategy and risk-seeking strategy risk-avoiding strategy and risk-seeking strategy • Question 6 3 out of 3 points In a situational analysis, a strategic group is a group of ________ that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities. Answer other firms within an industry other firms within an industry • Question 7 3 out of 3 points Companies often choose a ________ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth. Answer stability stability • Question 8 3 out of 3 points ________ are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage. Answer Strategic reference points Strategic reference points • Question 9 3 out of 3 points The ________ is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds. Answer BCG matrix BCG matrix • Question 10 3 out of 3 points An organization which is a ________ in terms of its adaptive strategy would NOT follow a consistent strategy. Answer reactor reactor • Question 11 3 out of 3 points A(n) ________ is a resource that is impossible or extremely costly or difficult for other firms to duplicate. Answer imperfectly imitable imperfectly imitable • Question 12 0 out of 3 points Glassmaker AFG Industries positions itself as the primary supplier of glass used in microwave doors, shower doors, and patio tables. What type of a positioning strategy does the glass manufacturer use? Answer focus diversification • Question 13 3 out of 3 points A sustainable competitive advantage exists for an organization when other companies have tried unsuccessfully to duplicate the advantage and ________. Answer those companies have, for the moment, stopped trying to duplicate the advantage those companies have, for the moment, stopped trying to duplicate the advantage • Question 14 3 out of 3 points Imagine Dow Chemical is conducting a situational analysis. According to its sales, Dow is the second largest chemical company in the world. BASF is the largest. Both companies use a similar strategy. Within Dow's situational analysis, BASF would be classified as a ________. Answer core firm core firm • Question 15 3 out of 3 points An organization is experiencing ________ when it is reluctant to change strategies or competitive practices that have been successful in the past. Answer competitive inertia competitive inertia • Question 16 3 out of 3 points Which of the following is NOT one of the components of creative work environments? Answer group compensation group compensation • Question 17 3 out of 3 points ________ forces support the status quo. Answer Resistance Resistance • Question 18 3 out of 3 points A technology ________ begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology. Answer cycle cycle • Question 19 3 out of 3 points A(n) ________ is the individual who is formally in charge of guiding a change effort. Answer change agent change agent • Question 20 3 out of 3 points What is the first step for managing innovation during discontinuous change? Answer design iteration design iteration • Question 21 3 out of 3 points The purchase of new technologies to replace older ones is an example of ________. Answer technological substitution technological substitution • Question 22 3 out of 3 points Unverferth Manufacturing makes agricultural equipment. It used finite element analysis (FEA) software to speed up the design cycle for its 12-row sub-soiler. Which aspect of the compression approach to innovation would the use of this software apply? Answer shortening the time of individual steps shortening the time of individual steps • Question 23 3 out of 3 points ________ are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged. Answer Creative work environments Creative work environments • Question 24 3 out of 3 points Organizational ________ is the successful implementation of creative ideas in organizations. Answer innovation innovation • Question 25 3 out of 3 points The ________ approach to managing innovation assumes that innovation is a predictable process made up of a series of steps and that compressing the time it takes to complete those steps can speed up innovation. Answer compression compression • Question 26 3 out of 3 points The three steps in the basic process of managing organizational change outlined by Kurt Lewin are ________. Answer unfreezing, change intervention, and refreezing unfreezing, change intervention, and refreezing • Question 27 3 out of 3 points Nearly all technology cycles follow the typical ________ pattern of innovation. Answer S-curve S-curve • Question 28 3 out of 3 points An innovation stream moves from one technology cycle to another through the process of ________. Answer technological substitution technological substitution • Question 29 3 out of 3 points ________ is the knowledge, tools, and techniques used to transform inputs into outputs. Answer Technology Technology • Question 30 0 out of 3 points During the ________ phase of a technology cycle, companies innovate by lowering the cost and improving the functioning and performance of the dominant design. Answer discontinuous change incremental change Week 3 Quiz 5 • Question 1 3 out of 3 points A(n) ________ is a direct tax on imported goods designed to make it more expensive to buy those goods, instituted in hopes of reducing the volume of those imported goods in a given country. Answer tariff tariff • Question 2 3 out of 3 points A ________ is a strategic alliance in which two existing companies collaborate to form a third, independent company. Answer joint venture joint venture • Question 3 3 out of 3 points The acronym GATT stands for the ________. Answer General Agreement on Tariffs and Trade General Agreement on Tariffs and Trade • Question 4 3 out of 3 points An expatriate is someone who ________. Answer lives and works outside of his or her own country lives and works outside of his or her own country • Question 5 3 out of 3 points The term ________ is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations. Answer uncertainty avoidance uncertainty avoidance • Question 6 3 out of 3 points In 2000, the United States imposed a tax on all steel imports in an effort to protect about 5,000 jobs. This tax is an example of a(n) ________. Answer tariff tariff • Question 7 3 out of 3 points Nestlé is a company headquartered in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestlé is an example of a ________. Answer multinational corporation multinational corporation • Question 8 3 out of 3 points Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of its lipstick annually in Japan. It has no physical presence within the country beyond the fact its products are sold there. Fran Wilson Creative Cosmetics uses ________ to reach the Japanese market. Answer exporting exporting • Question 9 3 out of 3 points The Japanese government has proclaimed that its snow is different from that found in any other region of the world. As a result, all snow skis marketed in Japan must be manufactured in Japan. This is an example of a(n) ________. Answer nontariff barrier nontariff barrier • Question 10 3 out of 3 points ________ are both examples of cooperative contracts. Answer Franchising and licensing Franchising and licensing • Question 11 3 out of 3 points ________ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of people from a particular country. Answer National culture National culture • Question 12 3 out of 3 points Uganda is one of only two countries in the world that produce a mineral required in the manufacturing of cellular phones. A company which mines that rare mineral decided to not invest in the country due to a bloody civil war resulting from a change in rulers. The mining company used a(n) ________. Answer avoidance strategy avoidance strategy • Question 13 3 out of 3 points ________ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries. Answer Subsidies Subsidies • Question 14 3 out of 3 points What are the two types of political risk that affect companies conducting global business? Answer political uncertainty and policy uncertainty political uncertainty and policy uncertainty • Question 15 3 out of 3 points A multinational company that acts with ________ has offices, manufacturing plants, and distribution facilities in different countries all which run based on the same rules, guidelines, policies, and procedures. Answer global consistency global consistency • Question 16 3 out of 3 points ________ departmentalization is notorious for confusion and conflict between project managers in different areas of the organization. Answer Matrix Matrix • Question 17 3 out of 3 points ________ is a feeling of intrinsic motivation, in which workers perceive their work to have meaning and perceive themselves to be competent, having an impact, and capable of self-determination. Answer Empowerment Empowerment • Question 18 3 out of 3 points ________ departmentalization is defined as organizing work and workers into separate units responsible for particular business functions or areas of expertise. Answer Functional Functional • Question 19 3 out of 3 points A(n) ________ organization is one that is characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge. Answer organic organic • Question 20 3 out of 3 points Hallmark has four departments. These departments are (1) Flowers and Gifts, (2) Cards and E-cards, (3) Hallmark Collectibles, and (4) Photo Albums and Scrapbooks. Hallmark uses ________ departmentalization. Answer product product • Question 21 3 out of 3 points The three types of task interdependence are Answer reciprocal, pooled, and sequential reciprocal, pooled, and sequential • Question 22 3 out of 3 points ________ is the degree to which a job is perceived to have a substantial impact on others inside or outside the organization. Answer Task significance Task significance • Question 23 3 out of 3 points ________ is the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish their jobs. Answer Autonomy Autonomy • Question 24 3 out of 3 points ________ is the process of solving problems by consistently applying the same rules, procedures, and processes. Answer Standardization Standardization • Question 25 3 out of 3 points ________ is characterized by simple, easy-to-learn steps; low variety; and high repetition. Answer Job specialization Job specialization • Question 26 3 out of 3 points Which of the following is an approach to managing interorganizational processes? Answer modular organizations modular organizations • Question 27 0 out of 3 points Which of the following is NOT one of the core job characteristics in the job characteristics model (JCM)? Answer skill variety client relationships • Question 28 3 out of 3 points ________ involves assigning direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible. Answer Delegation of authority Delegation of authority • Question 29 3 out of 3 points A(n) ________ organization is part of a network in which many companies share skills, costs, capabilities, markets, and customers with each other. Answer virtual virtual • Question 30 3 out of 3 points ________ determines the number, kind, and variety of tasks that individual workers perform in their jobs. Answer Job design Job design Week 3 Quiz 6 • Question 1 3 out of 3 points Which of the following is an example of a situational theory of leadership? Answer Fiedler's contingency theory Fiedler's contingency theory • Question 2 3 out of 3 points Which of the following traits refers to the tendency of leaders to remain even-tempered and consistent in their outlook and the way they treat others even when things go wrong? Answer emotional stability emotional stability • Question 3 3 out of 3 points Relatively stable characteristics such as abilities, psychological motives, or consistent patterns of behavior, form the basis for the ________ of leadership. Answer trait theory trait theory • Question 4 3 out of 3 points According to the path-goal theory of leadership, ________ involves consulting employees for their suggestions and input before making decisions. Answer participative leadership participative leadership • Question 5 3 out of 3 points Which of the following is NOT one of the four leadership styles identified in the path-goal theory of leadership? Answer Charismatic Charismatic • Question 6 3 out of 3 points The normative decision theory ________. Answer helps managers determine how much employee participation should be used in decision making helps managers determine how much employee participation should be used in decision making • Question 7 3 out of 3 points Leaders who possess the trait of ________ are more decisive and assertive and more likely to gain others' confidence. Answer self-confidence self-confidence • Question 8 3 out of 3 points In the path-goal theory of leadership, subordinate satisfaction and subordinate performance would be examples of ________. Answer outcomes outcomes • Question 9 3 out of 3 points Which one of the following traits refers to high levels of effort and is characterized by achievement, motivation, ambition, energy, tenacity, and initiative? Answer Drive Drive • Question 10 3 out of 3 points Oftentimes when an individual is running for a local political office, he or she makes lots of promises. When the individual wins the election and assumes office, he or she is often unable to carry through on political promises, an inability which leads to a perceived problem with ________. Answer Integrity Integrity • Question 11 3 out of 3 points The two kinds of charismatic leaders are referred to as ________. Answer ethical charismatics and unethical charismatics ethical charismatics and unethical charismatics • Question 12 3 out of 3 points Research at three universities has confirmed that two basic leader behaviors, ________ and ________, are central to successful leadership. Answer initiating structure; consideration initiating structure; consideration • Question 13 3 out of 3 points In terms of leadership behavior, the term ________ refers to the extent to which a leader is friendly, approachable, supportive, and shows concern for employees. Answer Consideration Consideration • Question 14 0 out of 3 points Which of the following is a major concern of managers (as opposed to leaders)? Answer inspiring and motivating others maintaining the status quo • Question 15 3 out of 3 points Which of the following is another term for considerate leadership behavior? Answer employee-centered leadership employee-centered leadership • Question 16 3 out of 3 points One of Canada's largest financial service providers, wanted to develop a customer-focused sales and service culture, top management developed the main messages, which were consistently communicated to all levels of employees throughout the organization. This is an example of a(n) ________ communication channel. Answer downward downward • Question 17 3 out of 3 points Rubylyn is a very enthusiastic person who has been hired to work as the personal assistant for an event planner. At first, Rubylyn was driving her supervisor to distraction because she was always interrupting him and asking him if he wanted anything. After some ________ with the event planner, Rubylyn better understood what her job entailed and became a valued employee. Answer constructive feedback constructive feedback • Question 18 3 out of 3 points ________ is the withholding of information about organizational problems or issues by employees. Answer Organizational silence Organizational silence • Question 19 3 out of 3 points In the perceptual process, ________ is the process of incorporating new information into your existing knowledge. Answer organization organization • Question 20 3 out of 3 points ________ is the tendency to overestimate our value by attributing successes to ourselves (internal causes) and attributing failures to others or the environment (external causes). Answer A self-serving bias A self-serving bias • Question 21 3 out of 3 points The last step in the perceptual process is ________. Answer retention retention • Question 22 3 out of 3 points The three formal communication channels in organizations are categorized as ________. Answer downward, horizontal, and upward downward, horizontal, and upward • Question 23 3 out of 3 points ________ is communication with someone about non-job-related issues that may be affecting or interfering with the person's performance. Answer Counseling Counseling • Question 24 3 out of 3 points When the CEO of a large corporation explained to their unionized employees why the company had to reduce healthcare coverage for its employees, he was engaged in ________ communication. Answer downward downward • Question 25 3 out of 3 points In the perceptual process, ________ is the process of attaching meaning to new knowledge. Answer interpretation interpretation • Question 26 3 out of 3 points In the model of the communication process presented in the text, ________ occurs when a message is put into a written, verbal, or symbolic form that can be recognized and understood by the receiver. Answer encoding encoding • Question 27 3 out of 3 points In nonverbal communication, the term ________ refers to movements of the body and face. Answer kinesics kinesics • Question 28 3 out of 3 points In empathetic listening, ________ is important because it demonstrates that you understand the speaker's emotions. Answer reflecting feelings reflecting feelings • Question 29 3 out of 3 points In the perceptual process, ________ is the process of noticing or becoming aware of particular stimuli. Answer attention attention • Question 30 3 out of 3 points The ________ states that we all have a basic need to understand and explain the causes of other people's behavior. Answer attribution theory attribution theory • Question 1 3 out of 3 points A manager engaged in the management function of ________ is monitoring progress toward goal achievement and taking corrective action when needed. Answer controlling controlling • Question 2 3 out of 3 points According to Mintzberg, which role would a manager assume if she were trying to convince union members to accept a 25-cent-per-hour reduction in pay in order to keep the manufacturing plant open? Answer negotiator negotiator • Question 3 3 out of 3 points In Great Britain, Nestlé introduced a candy bar called Yorkie with the slogan "It's not for girls!" The resulting furor over this sexist campaign required its British managers to spend a great deal of time in the role of: Answer disturbance handlers disturbance handlers • Question 4 3 out of 3 points A manager engaged in the management function of ________ is determining organizational goals and the means for achieving them. Answer planning planning • Question 5 0 out of 3 points A U.S. Marine drill instructor motivating new recruits to challenge themselves is engaged in which management function? Answer leading controlling • Question 6 3 out of 3 points ________ is defined as getting work done through others. Answer Management Management • Question 7 3 out of 3 points To achieve its goal of increased market share, Krispy Kreme launched a program in Palm Beach County, Florida, that awards grade-school students a free doughnut for every A on their report cards. Which management function was used to create this program? Answer planning planning • Question 8 3 out of 3 points Typical responsibilities for ________ include setting objectives consistent with organizational goals and then planning and implementing the subunit strategies for achieving these goals. Answer middle managers middle managers • Question 9 3 out of 3 points Nestlé was unsuccessful in early attempts to sell its chocolate in India. It discovered its chocolate bars were not suitable for the Indian markets because the candy had to sit in direct sunlight without benefit of air conditioning and became messy. Nestlé adopted an innovation strategy and developed Chocostick, a liquid chocolate, which is very popular. Solving this problem involved what management function? Answer planning planning • Question 10 3 out of 3 points In the decisional role of ________ managers adapt themselves, their subordinates, and their units to incremental change. Answer entrepreneur entrepreneur • Question 11 0 out of 3 points The marketing manager of Interstate Bakeries was asked to meet with the organization's research and development department to explain why the company needed to change its 25-year-old package design for Twinkies. The marketing manager took on an interpersonal role as: Answer disseminator liaison • Question 12 3 out of 3 points Team leaders typically: Answer manage internal and external relationships manage internal and external relationships • Question 13 3 out of 3 points Managers who train and supervise the performance of nonmanagerial employees and who are directly responsible for producing the company's products or services are categorized as: Answer first-line managers first-line managers • Question 14 3 out of 3 points A business school administrator who is determining what classes will be offered in which rooms and who will teach each specific class is involved in which classical management function? Answer organizing organizing • Question 15 3 out of 3 points An accountant with ________ has the ability to create a budget, compare the budget to the actual income statement, and determine unnecessary expenses. Answer technical skill technical skill • Question 1 2 out of 2 points Synergy occurs when ____. Answer two or more subsystems working together can produce more than they can working apart two or more subsystems working together can produce more than they can working apart • Question 2 2 out of 2 points To encourage more ethical decision making in an organization, its managers should ____. Answer do all of these do all of these • Question 3 0 out of 2 points A manager striving to improve organizational __________ is accomplishing tasks that help achieve organizational objectives. Answer productivity effectiveness • Question 4 2 out of 2 points Various persons or groups with a legitimate interest in a company's actions are called ____. Answer stakeholders stakeholders • Question 5 2 out of 2 points Which skills increase in their importance to success as managers’ rise through the managerial ranks? Answer conceptual skills and the motivation to manage conceptual skills and the motivation to manage • Question 6 2 out of 2 points In general, people will be indifferent to managerial directives or orders if they ____. Answer meet all of the above qualifications meet all of the above qualifications • Question 7 0 out of 2 points How did the Industrial Revolution change jobs and organizations? Answer Managers learned to use delegation. Low-paid, unskilled workers running machines began to replace high-paid, skilled artisans. • Question 8 0 out of 2 points What type of skills tends to be equally important at all levels of management? Answer technical skills human skills • Question 9 2 out of 2 points Which of the following companies is most likely operating in a dynamic environment? Answer a video game manufacturer a video game manufacturer • Question 10 2 out of 2 points Bayer AG was indicted as a participant in an international price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires, and other products. Bayer AG paid its fine but did not admit culpability. Instead, the company announced that paying the fine was less costly than litigation. Bayer AG implemented a(n) ____ strategy. Answer reactive reactive • Question 11 0 out of 2 points Two homebuilders are building homes in nearby subdivisions. One is offering 2,500-square-foot homes with two-acre yards. The other is offering a similar size of house with quarter-acre yards. The builder offering the smaller lots cannot keep up with demand. The builder offering the larger lots has several unsold houses. The builder with the smaller lots most likely used ____ to determine what homebuyers desired. Answer consumer confidence forecasts proactive customer monitoring • Question 12 2 out of 2 points One of the difficulties encountered in recent mergers has been the inability of employees in the two existing organizational cultures to operate harmoniously. In other words, merging organizational cultures often lack the ____ that would increase the likelihood of a merger's success. Answer adaptability adaptability • Question 13 2 out of 2 points ____ involves deciding who your competitors are, anticipating competitors' moves, and determining competitors' strengths and weaknesses. Answer A competitive analysis A competitive analysis • Question 14 0 out of 2 points Typically the most important factor in the relationship between companies and their suppliers is ____. Answer the type of product being manufactured how dependent they are on each other • Question 15 2 out of 2 points What is social responsibility? Answer a business' obligation to pursue policies, make decisions, and take actions that benefit society a business' obligation to pursue policies, make decisions, and take actions that benefit society • Question 16 2 out of 2 points According to the ____theory, companies go through long, simple periods of environmental stability, followed by short, complex periods of dynamic, fundamental environmental change, finishing with a return to environmental stability. Answer punctuated equilibrium theory punctuated equilibrium theory • Question 17 0 out of 2 points The last step in the basic model of ethical decision making is to ____. Answer monitor the results act • Question 18 0 out of 2 points In setting up his new office, an attorney wanted furnishings that were elegant and that would make him look successful. He wanted thick, plush carpeting in his office, but federal regulations state that his office must be wheelchair accessible because it is a public area. Wheelchairs do not maneuver well in thick carpeting. The building inspector had him remove the expensive carpeting and replace it with a carpet that did allow for wheelchair maneuverability. This is an example of how the ____ component of a company’s specific environment influences it. Answer political/legal industry regulation • Question 19 0 out of 2 points An increase in ____ can lead to opportunistic behavior in which one party benefits at the expense of the other. Answer managerial commitment buyer dependence • Question 20 0 out of 2 points 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? Answer postconventional preconventional • Question 21 2 out of 2 points The chairs of the accounting, marketing, and communications departments at a typical university are assuming the roles of ____ because they supervise nonmanagerial employees. Answer first-line managers first-line managers • Question 22 2 out of 2 points 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. Answer compromise compromise • Question 23 0 out of 2 points Creating a competitive advantage through people relies heavily on the use of which skill to reward people for providing exceptional customer service? Answer interpersonal motivation to manage • Question 24 2 out of 2 points After an organization's founders are gone, the organization can use ____ to sustain its organizational culture. Answer organizational heroes organizational heroes • Question 25 2 out of 2 points The Edmonton Oilers ice hockey team develops a sense of history for its current players by raising banners showing its success - five championships - and the retired numbers of great players from the past in its stadium and locker room. What tactics for maintaining organizational culture are the Edmonton Oilers using? Answer organizational stories and organizational heroes organizational stories and organizational heroes • Question 26 2 out of 2 points According to human relations management ____. Answer success depends on treating workers well success depends on treating workers well • Question 27 0 out of 2 points During the Bank Wiring Room phase of his Hawthorne Studies, Elton Mayo witnessed behavior reminiscent of the ____ Frederick Taylor observed. Answer positive effects of employee empowerment soldiering • Question 28 0 out of 2 points Ethical intensity depends on all of the following EXCEPT ____. Answer temporal immediacy social commitment • Question 29 0 out of 2 points A systems view of management allows managers to ____. Answer eliminate production bottlenecks deal with the complex environment in which their companies operate • Question 30 2 out of 2 points Which of the following is a characteristic of successful organizational cultures? Answer all of these all of these • Question 31 0 out of 2 points 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 ____. Answer organizational acculturation behavioral substitution • Question 32 2 out of 2 points Frank and Lillian Gilbreth are important to management because they ____. Answer used motion studies to eliminate unnecessary or repetitive motions from the work process used motion studies to eliminate unnecessary or repetitive motions from the work process • Question 33 0 out of 2 points According to Kohlberg's model of moral development, people at the ____ use internalized ethical principles to solve ethical dilemmas. Answer conventional level postconventional level • Question 34 2 out of 2 points Which of the following statements about corporate cultures is true? Answer Corporate cultures are very difficult to change. Corporate cultures are very difficult to change. • Question 35 2 out of 2 points First-line managers will most likely have to: Answer encourage, monitor, and reward the performances of their employees encourage, monitor, and reward the performances of their employees • Question 36 0 out of 2 points After identifying the problem in the basic model of ethical decision-making, the next step is to ____. Answer analyze your options identify the constituents • Question 37 2 out of 2 points A U.S. Marine drill instructor motivating new recruits to challenge themselves is engaged in which management function? Answer leading leading • Question 38 0 out of 2 points After a year as a manager, new managers typically realize their job is: Answer to be a troubleshooter people management • Question 39 2 out of 2 points Middle managers will most likely have to: Answer implement the changes generated by top managers implement the changes generated by top managers • Question 40 2 out of 2 points ____ is a primary source of organizational culture. Answer The company's founder The company's founder • Question 41 0 out of 2 points Companies doing a competitive analysis typically err by ____. Answer doing all of these doing an incomplete job of identifying competitors • Question 42 Needs Grading (Extra Credit) What are Mintzberg's Managerial Roles? Name one subrole under each managerial role. Answer Mitzenberg's Managerial Roles include interpersonal roles-leader, information roles-disseminator, and decisional roles-negotiator. The leader is in charge and must also listen to employees. When playing the role of disseminator, the manager is informing employees or the public of information. The negotiator, as a part of the decisional role, would be responsible for decision making and contracting details in the company or with other companies. -Interpersonal Roles: leader -Informational Roles: spokesperson -Decisional Roles: negotiator • Question 43 2 out of 2 points As the shift supervisor at a car wash, Jacob is bossy, arrogant, and insensitive to the needs of his subordinates. He is unable to delegate any tasks to the other employees. He will more than likely never be a middle or top manager because he: Answer is a derailer is a derailer • Question 44 0 out of 2 points Frederick Taylor is famous for____. Answer developing time and motion studies creating the principles of scientific management • Question 45 2 out of 2 points 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 ____. Answer allowing employees to personalize their cubicles allowing employees to personalize their cubicles • Question 46 Needs Grading (Extra Credit) What Key Skills does a typical company look for in its managers? Answer Companies look for technical skills, human skills, conceptual skills and the motivation to manage resources effectively. • Question 47 2 out of 2 points According to Mintzberg, which of the following are the three major roles managers fulfill while performing their jobs? Answer interpersonal roles, informational roles, and decisional roles interpersonal roles, informational roles, and decisional roles • Question 48 0 out of 2 points The ____ consists of the economy and the technological, socio-cultural, and political/legal trends that indirectly affect all organizations. Answer direct environment general environment • Question 49 Needs Grading (Extra Credit) Briefly describe the four functions of management and explain why each is important to maintaining a successful business/employee environment. Answer The four function os management include planning, organizing, leading, and controlling. A part of planning is determining organizational goals and a means for achieving. Organizing includes deciding where decisions will be made, who will do what jobs and tasks, and who will work for who in the company. Leading entails inspiring and motivating workers to work hard to achieve organizational goals and controlling focuses on monitoring progress towards goal achievement and taking corrective action when progress is not being made. If a manager was insufficient at planning, efficiency and time would be lost because the job may not get done. With no organization employees and lower-level managers would not know what their specific job is, creating chaos. If a manager was not an effective leader, the employees would have trouble respecting them and the environment would be more of a joke. Likewise, is a manager was not not able to control the environment and organization, the company could not last. If a manager did not practice these four functions, the business and employee environment would be negative. The four functions of management are planning, organizing, leading, and controlling. Planning involves setting organizational goals and an outline to reach these goals in a timely manner. Organizing is making decisions setting departments and developing set jobs within each department. Next is leading, this mostly deals with motivating and inspiring employee to help complete the company’s goals. Finally, controlling which is supervising basic operations of the company and maintaining an efficient production to reach specific goals. Having these four functions of management helps sustain a productive work environment. Each of these functions is critical to run a business and pertain to the structure of a successful business. • Question 50 2 out of 2 points A contractor was feeling defeated because the job he was working on was so far behind schedule. As he looked at the job site, he saw one worker moving bricks by carrying two at a time from where they were unloaded to where they were needed. He saw another climbing up a ladder with a few shingles, climbing back down to get more, and then repeating the process. Which management process could be used to determine how the workers could perform their tasks more efficiently? Answer Time and motion studies Time and motion studies • Question 51 2 out of 2 points A company facing a simple environment would ____. Answer have few external factors in the environment that affect it have few external factors in the environment that affect it • Question 52 2 out of 2 points Krispy Kreme Krispy Kreme is a relatively small doughnut seller. It has only 292 stores while Dunkin Donuts has 3,600 outlets in the United States. In spite of its size, The company originated in Winston-Salem, North Carolina, where it still operates a plant that fills a 50-pound bag with doughnut mix every seven seconds. It recently opened a new plant in Effingham, Illinois, that fills a bag every three seconds. This second plant allows the company to reduce costs while increasing its output. The company began in the mid-1930s when Vernon Rudolph bought a secret recipe for yeast doughnuts from a French pastry cook. Rudolph ran the company until his death in 1973. Refer to Krispy Kreme. As the CEO of Krispy Kreme, Rudolph would have been responsible for: Answer doing all of these things doing all of these things • Question 53 0 out of 2 points In which of the following situations would a Gantt chart be appropriate to use? Answer building a bridge all of these Wednesday, September 11, 2013 12:50:59 PM EDT Course Management Concepts Test Quiz 3 Started 5/11/14 10:27 AM Submitted 5/11/14 11:08 AM Status Completed Attempt Score 87 out of 90 points Time Elapsed 40 minutes out of 2 hours. Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 4. The second 15 questions cover the material in Chapter 5. Be sure you are in the correct Chapter when you take the quiz. • Question 1 3 out of 3 points The last step in the basic model of ethical decision making is to ____. Answer act act • Question 2 3 out of 3 points ____ stakeholders are any groups that can influence or be influenced by the company and can affect public perceptions about its socially responsible behavior. Answer Secondary Secondary • Question 3 3 out of 3 points According to the ____ model, management's most important responsibility is long-term survival (not just maximizing profits). Long-term survival, according to this model, is achieved by satisfying the interests of multiple corporate stakeholders. Answer stakeholder stakeholder • Question 4 3 out of 3 points The two general categories of stakeholders are ____ stakeholders and ____ stakeholders. Answer primary; secondary primary; secondary • Question 5 3 out of 3 points ____ stakeholders are groups, such as shareholders, employees, customers, suppliers, governments, and local communities, on which the organization depends for long-term survival. Answer Primary Primary • Question 6 3 out of 3 points Various persons or groups with a legitimate interest in a company's actions are called ____. Answer stakeholders stakeholders • Question 7 3 out of 3 points A(n) ____ is a written test that estimates employee honesty by directly asking job applicants what they think or feel about theft or about punishment of unethical behaviors. Answer overt integrity test overt integrity test • Question 8 3 out of 3 points Historically, ____ responsibility means making a profit by producing a product valued by society. It has been the most basic social responsibility of a business. Answer economic economic • Question 9 3 out of 3 points What is social responsibility? Answer a business' obligation to pursue policies, make decisions, and take actions that benefit society a business' obligation to pursue policies, make decisions, and take actions that benefit society • Question 10 3 out of 3 points Ethical intensity depends in part upon ____. Answer temporal immediacy temporal immediacy • Question 11 3 out of 3 points The three stages of moral development identified by Kohlberg are ____. Answer preconventional level, conventional level, and postconventional level preconventional level, conventional level, and postconventional level • Question 12 3 out of 3 points The ____ determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn't know about the unethical behavior. Answer U.S. Sentencing Commission Guidelines U.S. Sentencing Commission Guidelines • Question 13 3 out of 3 points What term describes the degree of concern people have about an ethical issue? Answer ethical intensity ethical intensity • Question 14 3 out of 3 points According to Kohlberg's model of moral development, people at the ____ use internalized ethical principles to solve ethical dilemmas. Answer postconventional level postconventional level • Question 15 3 out of 3 points Why is it often difficult for an employee to assume the role of whistleblower? Answer because employees fear that they will be punished because employees fear that they will be punished • Question 16 3 out of 3 points In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and include evacuating buildings. What kind of a standing plan is described in this example? Answer procedures procedures • Question 17 3 out of 3 points ____ are types of standing plans. Answer Policies and procedures Policies and procedures • Question 18 0 out of 3 points Groupthink occurs in ____. Answer newly formed groups whose members were arbitrarily selected and who are assigned to make programmed decisions highly cohesive groups where there is a great deal of pressure to agree with each other • Question 19 3 out of 3 points Top management is responsible for developing long-term ____ that make clear how the company will serve customers and position itself against competitors in the next two to five years. Answer strategic plans strategic plans • Question 20 3 out of 3 points Who is primarily responsible for developing operational plans? Answer lower-level managers lower-level managers • Question 21 3 out of 3 points A manufacturer of suntan lotion could set a(n) ____ goal to increase revenues by 8 percent over the next five years and a(n) ____ goal to increase sales next June in the Miami Beach area by 3 percent. Answer distal; proximal distal; proximal • Question 22 3 out of 3 points ____ is the process of choosing a solution from available alternatives. Answer Decision making Decision making • Question 23 3 out of 3 points ____ occurs when managers choose an alternative that is good enough, rather than the best possible alternative. Answer Satisficing Satisficing • Question 24 3 out of 3 points After earning $8 billion in profit, Royal Dutch/Shell decided to strive to double its profits within the next five years. Which classical management function would be instrumental in achieving this goal? Answer planning planning • Question 25 3 out of 3 points ____ can help organizations to maintain flexibility as they plan. Answer Options-based planning Options-based planning • Question 26 3 out of 3 points Neither Chile nor Peru has a mass-market café culture, but that fact has not stopped Starbucks from trying to determine what can be done to make its coffee houses successful in those markets. By recognizing that people in these two South American countries do not drink coffee like people in the United States and that they should change this habit, Starbucks has begun a ____ process with problem identification. Answer rational decision making rational decision making • Question 27 3 out of 3 points For options-based planning to work, the organization must ____. Answer have slack resources have slack resources • Question 28 3 out of 3 points ____ are standing plans that indicate the specific steps that should be taken in response to a particular event. Answer Procedures Procedures • Question 29 3 out of 3 points Which of the following is a commonly used method for increasing goal commitment? Answer make goals public make goals public • Question 30 3 out of 3 points The use of ____ in planning produces a false sense of certainty and is often cited as one of the major pitfalls of planning. Answer assumptions assumptions Refer to Oakland Athletics. Beane operates within windows of opportunity; that's all he can afford. Because compensation trails performance, he must find players on the rise, guys who haven't caught fire yet but who could. His ability to see potential players creates a positive image for the baseball club's future. Beane's ability to provide direction for the future means that he could be classified as a(n) ____. visionary leader  UPS was founded UPS in 1907 as a message delivery business. The development of the telephone would have put an end to the business if UPS's founder had not been a ____ type of leader. One who was able to get his employees to accomplish more than they had thought possible and re-invent the company as a company that delivered goods for retailers. transformational  Which of the following is another term for considerate leadership behavior? employee-centered leadership  ____ is the ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate change that will create a positive future for the organization. Strategic leadership  According to an article from CIO Magazine, "Leadership grows from courage and integrity." From this opening statement, you know the article will discuss leadership from the ____. trait theory viewpoint  The two kinds of charismatic leaders are referred to as ____. ethical charismatics and unethical charismatics  According to the path-goal theory of leadership, what type of leadership is being practiced that involves letting employees know precisely what is expected of them, giving them specific guidelines for performing tasks, scheduling work, setting standards of performance, and making sure that people follow standard rules and regulations. directive leadership  Refer to Hewlett-Packard. According to the contingency theory, when Mark Hurd decided to lay off 14,500 employees, he was showing high ____. position power  As CEO of UPS, Michael Eskew transformed the company from a package delivery service to a logistics expert so it could serve as a traffic manager for corporate America. As a transformational manager, Eskew ____. used intellectual stimulation to encourage his employees to take innovative approaches to problem solving  Doris Cunningham, CEO of Members Choice Federal Credit Union in West Virginia, believes keeping staff excited about the business they're in is one of a leader's primary roles. She believes a spirit of enthusiasm must start at the top. This indicates that Cunningham is high in ____. Consideration  is defined as the degree to which leaders are able to hire, fire, reward, and punish workers Position power  is the extent to which a leader is friendly, approachable, and supportive and shows concern for employees. Consideration  Which of the following statements about the two basic leader behaviors that are central to successful leadership is true? These behaviors are independent, meaning that leaders can do both at the same time.  Which of the following is a major concern of leaders (as opposed to managers)? inspiring and motivating others  One of the criticisms of the television industry is the networks' desire to maintain ratings by thinking in terms of next week's programming. The networks are also more concerned with how to get high program ratings quickly. This criticism assumes ____. the television industry has a shortage of effective leadership  Research shows that while initiating structure impacts primarily on ____, consideration impacts primarily on ____. job performance; job satisfaction  In Fiedler's contingency theory, the term ____ refers to the degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members. situational favorableness  Refer to Hewlett-Packard. There was a deep sense of distrust at HP when Hurd replaced Carly Fiorina as CEO. Which leadership behavior should Mark use to help improve the situation? Consideration  Which of the following statements about ethics is true? Ethics is the set of moral principles or values that defines right and wrong for a person or group.  Mark Graf, a security specialist at the Rocky Flats nuclear facility outside Denver, became alarmed about the temporary removal of 450 kilograms of plutonium oxide from a vault-like room to a "soft room" protected by drywall that you could punch a hole through. Graf eventually had to take his concerns to the media before the plutonium was stored once again in a safe location. Graf actions can be described as a(n) ____. whistleblower  According to the ____ model, management's most important responsibility is long-term survival (not just maximizing profits). Long-term survival, according to this model, is achieved by satisfying the interests of multiple corporate stakeholders. stakeholder  A company implementing a(n) ____ strategy would demonstrate the greatest willingness on the part of the company to meet or exceed society's expectations. proactive  The U.S. Sentencing Commission Guidelines impose smaller fines on companies that ____. have already established a specific type of compliance program  Refer to Gap. Today it could be argued that Gap has become the most proactive retailer in the industry. This means Gap ____. anticipates responsibility for a problem before it occurs and does more than society expects to address the problem  The social responsiveness strategy that could be considered essentially a public relations approach is the ____ strategy. defensive  Which of the following statements about social responsibility is true? Economic and legal responsibilities play a larger role in a company's social responsibility than do ethical and discretionary responsibilities.  ____ are the expectations that a company will voluntarily serve a social role beyond its economic, legal, and ethical responsibilities. Discretionary responsibilities  A(n) ____ is a written test that estimates employee honesty by directly asking job applicants what they think or feel about theft or about punishment of unethical behaviors. overt integrity test  According to Kohlberg's model of moral development, people at the ____ make decisions that are based on selfish reasons. preconventional level  In recent years Kowalski's Markets expanded by purchasing four existing stores. One of the stores was located in Minneapolis' Camden neighborhood, a lower-class community unlike the store's typical upscale customer demographic. Rather than sell the property, the owners decided they had an obligation to provide a neighborhood grocery store to that community. Which of the following is an example of a primary stakeholder group for Kowalski's markets? customers in the Camden neighborhood  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) ____. primary stakeholder  Which of the following is NOT an example of a stakeholder group that an organization must satisfy to assure long-term survival? the media  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? preconventional  For some time now, GlaxoSmithKline (GSK) has been making anti-AIDS drugs like Retrovir and Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. But that wasn't enough for AIDS prevention groups, which were outraged by GSK's decision to use the World Trade Organization's (WTO's) patent protection rules to take action against governments importing lower-cost versions of these drugs. AIDS prevention groups saw GSK's use of WTO regulation as acting at which level of social responsibility? economic  Ramin wood, which is used to make pool cues and picture frames, was declared an endangered species and its export is regulated by the government of Indonesia. In spite of attempts to control the sale of the wood, it is still being carried across Indonesia's national borders and sold in Malaysia where government officials pretend the wood was legally acquired. Companies that buy the illegally-acquired wood in Malaysia are ignoring their ____ responsibility to society. legal  Under the stakeholder model, ____ would be an example of a stakeholder group that does not engage in regular transactions with the company and is not critical to its long-term survival but can still affect public perceptions and opinions about the company's socially responsible behavior. the media  A company implementing a(n) ____ strategy would choose to accept responsibility for a problem and do all that society expects to solve problems. accommodative  When media in India informed the public that Coca-Cola products bottled in India contained a high level of certain cancer-causing pesticides, they were acting in the role of ____. secondary stakeholders  The last step in the basic model of ethical decision making is to ____. act  The Department of Defense doesn't classify pilferage as a major problem, as its annual inventory losses run $1-2 billion a year. The intentional theft and sale of defense secrets would have greater ethical intensity than this pilferage due to ____. magnitude of consequences  Refer to Anglo American. ____ is the term used to describe the obligation Anglo American had to take actions that benefit society. Social responsibility  What term describes the degree of concern people have about an ethical issue? ethical intensity  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? preconventional  Refer to Gap. Gap was ignoring its discretionary responsibilities to society when it ____. ignored the terrible treatment of overseas workers in the clothing industry  Refer to Anglo American. Even though Anglo American would not have been considered unethical if it had not begun the fight against AIDS, it chose to assume a social role of ____, the highest level of social responsibility. discretionary responsibility  According to the stakeholder model, which primary stakeholder group is theoretically most important to the company? all primary stakeholders are of equal importance  ___ integrity tests indirectly estimate employee honesty by measuring psychological traits. Personality-based  Mark Graf, a security specialist at the Rocky Flats nuclear facility outside Denver, became alarmed about the temporary removal of 450 kilograms of plutonium oxide from a vault-like room to a "soft room" protected by drywall that you could punch a hole through. Graf eventually had to take his concerns to the media before the plutonium was stored once again in a safe location. Graf actions can be described as a(n) ____. whistleblower  Video Arts Inc., a Chicago-based business training company, is currently marketing The Grapevine, a 30-minute training video designed to teach companies how to deal with and prevent damaging gossip. Which of the following is an example of a secondary stakeholder group for Video Arts? business magazines that run ads for the training video  Refer to Anglo American. The wave of relief, optimism, and hope throughout South Africa is a reflection of the ____ caused by Anglo's decision. magnitude of consequences  Companies are not considered unethical if they do not perform their ____ responsibilities. discretionary  According to Milton Friedman, which of the following is a position opposing the stakeholder model of corporate social responsibility? The time, money, and attention diverted to social causes undermine market efficiency  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) ____. whistleblower  According to Kohlberg's model of moral development, people at the ____ use internalized ethical principles to solve ethical dilemmas. postconventional level  A company implementing a(n) ____ strategy would demonstrate the greatest willingness on the part of the company to meet or exceed society's expectations. proactive  Ramin wood, which is used to make pool cues and picture frames, was declared an endangered species and its export is regulated by the government of Indonesia. In spite of attempts to control the sale of the wood, it is still being carried across Indonesia's national borders and sold in Malaysia where government officials pretend the wood was legally acquired. Companies that buy the illegally-acquired wood in Malaysia are ignoring their ____ responsibility to society. legal  ____ are the expectations that a company will voluntarily serve a social role beyond its economic, legal, and ethical responsibilities. Discretionary responsibilities  The three stages of moral development identified by Kohlberg are ____. preconventional level, conventional level, and postconventional level  When media in India informed the public that Coca-Cola products bottled in India contained a high level of certain cancer-causing pesticides, Coke responded by saying that all of India's water was contaminated and that it was not doing anything wrong by using the local water supply. What kind of a strategy did Coke use to respond to its social responsibility problems? reactive strategy  Ethical intensity depends in part upon ____. temporal immediacy  Video Arts Inc., a Chicago-based business training company, is currently marketing The Grapevine, a 30-minute training video designed to teach companies how to deal with and prevent damaging gossip. Which of the following is an example of a secondary stakeholder group for Video Arts? business magazines that run ads for the training video  Which of the following statements about social responsibility is true? Economic and legal responsibilities play a larger role in a company's social responsibility than do ethical and discretionary responsibilities.  The social responsiveness strategy that could be considered essentially a public relations approach is the ____ strategy. defensive  For some time now, GlaxoSmithKline (GSK) has been making anti-AIDS drugs like Retrovir and Epivir available in hard-hit areas of Africa at up to 75 percent off the global price. But that wasn't enough for AIDS prevention groups, which were outraged by GSK's decision to use the World Trade Organization's (WTO's) patent protection rules to take action against governments importing lower-cost versions of these drugs. AIDS prevention groups saw GSK's use of WTO regulation as acting at which level of social responsibility? economic  Refer to Anglo American. ____ is the term used to describe the obligation Anglo American had to take actions that benefit society. Social responsibility  After identifying the problem in the basic model of ethical decision-making, the next step is to ____. identify the constituents  According to the stakeholder model, which primary stakeholder group is theoretically most important to the company? all primary stakeholders are of equal importance  The U.S. Sentencing Commission Guidelines impose smaller fines on companies that ____. have already established a specific type of compliance program  Refer to Anglo American. Even though Anglo American would not have been considered unethical if it had not begun the fight against AIDS, it chose to assume a social role of ____, the highest level of social responsibility. the media  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) ____. whistleblower  The ____ determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn't know about the unethical behavior. U.S. Sentencing Commission Guidelines  The ____ model holds that the only social responsibility that businesses have is to maximize profit. shareholder  The purposeful steps taken by an organization to create employment opportunities for minorities and women is called ____. affirmative action  ____ is a term that describes a situation in organizations when there is a variety of demographic, cultural, and personal differences among the people who work there and the customers who do business there. diversity  Refer to Wal-Mart. Wal-Mart has 65 percent female employees, and women comprise just 41.3 percent of its management trainees, 35.7 percent of its assistant managers, 22.8 percent of its co-managers, and 14.3 percent of its store managers. This indicates the giant retailer may have a(n) ____. glass ceiling  People with the Big Five dimension of ____ respond well under stress. emotional stability  Refer to Unilever. To focus on deep-level diversity, Unilever would need to use the ____ paradigm. learning and effectiveness  To help companies reduce age discrimination, their managers can ____. ensure that younger and older workers interact with each other  The term ____ refers to a work environment where (1) each member is empowered to contribute in a way that maximizes the benefits to the organization, customers, and themselves; and (2) the individuality of each member is respected by not segmenting or polarizing people on the basis of their membership in a particular group. organizational plurality  The two basic types of diversity training programs are ____. awareness training and skills-based diversity training  To make sure that people with disabilities have the same opportunities as everyone else, organizations can ____. make a commitment to reasonable workplace accommodations  Japanese-based Honda Motors recently opened a manufacturing plant in China. The Chinese balked at wearing the standard Honda white uniforms because white in China is a funeral color. The Chinese workers agreed to wear the white uniforms if they could wear gray caps. The compromise made everyone happy. This cultural sensitivity is an example of how ____ influences organizations. diversity  training program, its human resources managers discovered that Americans typically reach decisions very quickly. One German manager described them as "hip shooters." He said, "We [Germans] are more analytical. We're more logical and systematic." This discovery had to do with ____. deep-level diversity  The Finnish government is working to change the perception of older workers and encourage Finnish companies to abandon mandatory retirement plans. What kind of surface-level diversity is the Finnish government hoping to achieve? age  A family restaurant based in the English speaking providence of Ontario, was planning on opening a catering business in the French-speaking areas of Canada, This restaurant would need employees with which of the following dimensions of personality? openness to experience  Which of the following statements explains why diversity actually makes good business sense? Diversity helps companies attract and recruit talented employees  A key difference between affirmative action and diversity is that ____. diversity has a broader focus  Refer to Wal-Mart. The addition of the corporate compliance department reflects the implementation of a(n) ____. discrimination and fairness paradigm  In the nursing home industry, pairing two younger workers with an older worker creates more job opportunities for the older workers. Furthermore, this pairing could be a significant advantage in nursing homes where an older worker may have more sensitivity to aging problems. This would be an example of a type of mentoring called ____. diversity pairing  ____ is the relatively stable set of behaviors, attitudes, and emotions displayed over time that makes people different from each other. Personality  Refer to Unilever. A need to be concerned about ____ diversity was revealed by the retreat in Costa Rica. surface-level  Bentley College launched a comprehensive diversity initiative that includes frequent diversity retreats for faculty, staff, and student leaders; innovative recruitment efforts; employee benefits for domestic partners; and extensive support services focused on race, gender, and disability. Bentley uses the ____ paradigm for managing diversity. learning and effectiveness  Refer to Amazon.com. CEO Jeff Bezos must wrestle with basic management issues such as how to get more done at Amazon with a minimum of effort, expense, or waste. In other words, Bezos must make Amazon more: efficient  There have been several studies of managers who fail (derailers) and managers who succeed in climbing the organizational hierarchy (arrivers). Which of the following statements describes one of the facts learned from these studies? Arrivers are sensitive to the feelings of others.  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? monitor  Southern Living magazine was forced to pull an issue off newsstands and mail warnings to 2.5 million subscribers after it became clear that a recipe for dinner rolls described as "little pillows from heaven" was considered controversial. The management function of ____ was used when the warnings were mailed to subscribers. controlling  Middle managers will most likely have to: implement the changes generated by top managers  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. top manager  An accountant with ____ has the ability to create a budget, compare the budget to the actual income statement, and determine unnecessary expenses. technical skill  ____ is the accomplishment of tasks that help fulfill organizational objectives. Effectiveness  Leon Dodd is a member of a self-managed team at Standard Aero Alliance, Inc. (SAAI). His team's top priorities are understanding customer requirements and expectations. It would appear that SAAI is: using its employees to create a competitive advantage  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 from the ground-up parts of a plastic handheld calculator. The recall was the application of which management function? controlling  As the human resources manager for Spring Engineering and Manufacturing Corp. in Canton, Michigan, Kim Radeback had to find inexpensive ways to reward high performing employees and bolster morale during a sales-flattening economic downturn. Radeback had to engage in which management function? leading  Refer to Krispy Kreme. To be successful, managers need four skills. The fact that Rudolph was a skilled baker when he purchased the secret doughnut recipe indicates he had ____ skills. technical  When Ruth was hired to be the second-in-command at Graham Mailing Services, she was told that her job was to deal with the employees to make sure they got the mailing done to the customers' specifications. She was not instructed on how to run machines or in any other technical area because her position was a job in: management  Mike Walker supervises operations on the chassis assembly line for a large vehicle manufacturer. Most of his time is spent in quality control maintenance, scheduling workers, and training new employees. Walker would be categorized as a: first-line manager  To achieve its goal of increased market share, Krispy Kreme launched a program in Palm Beach County, Florida, that awards grade-school students a free doughnut for every A on their report cards. Which management function was used to create this program? planning  Which of the following is an example of an interpersonal role? figurehead  Robert Rothschild Farm boosted morale and showed its gratitude to its 75 employees at its retail store by hosting its first employee appreciation week. It used the management function of ____ to boost morale. leading  According to Mintzberg, which of the following are the three major roles managers fulfill while performing their jobs? interpersonal roles, informational roles, and decisional roles  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. effectiveness  Refer to Anglo American. To meet its obligation for social responsibility, Anglo American used a progressive approach to doing what it could to solve the problems caused by the AIDS epidemic in South Africa. The mining conglomerate used a(n) ____ strategy. proactive  Secondary stakeholders are important to a company because ____. they can affect public perceptions and opinions  A U.S. metals broker advertises "95 percent of orders shipped from stock" even though the company has no warehouses and no inventory. When questioned about the truth of the ad, the broker responded, "We do ship 95 percent of our orders from stock, but it is from suppliers' stocks, not ours." To respond to this ethical question, the broker used a(n) ____ strategy. reactive  Refer to Anglo American. The miners who work for Anglo American are examples of ____. primary stakeholders  According to Kohlberg's model of moral development, people at the ____ make decisions that are based on selfish reasons. preconventional level  A company implementing a(n) ____ strategy would choose to accept responsibility for a problem and do all that society expects to solve problems. accommodative  Ethical intensity depends on all of the following EXCEPT ____. social commitment  Refer to Anglo American. Even though Anglo American would not have been considered unethical if it had not begun the fight against AIDS, it chose to assume a social role of ____, the highest level of social responsibility. discretionary responsibility  Bayer AG was indicted as a participant in an international price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires, and other products. Bayer AG paid its fine but did not admit culpability. Instead, the company announced that paying the fine was less costly than litigation. Bayer AG implemented a(n) ____ strategy. reactive  Kowalski's Markets, a local supermarket chain in Minneapolis, expanded by purchasing four existing stores. One of the stores was located in Minneapolis' Camden neighborhood, a lower-class community unlike the store's typical upscale customer demographic. Rather than sell the property, the owners decided they had a(n) ____ to provide a neighborhood grocery store to that community. social responsibility  What does it mean when the text says that the U.S. Sentencing Guidelines use a "carrot and stick" approach? The Guidelines offer lower fines to companies that take proactive steps.  ____ integrity tests indirectly estimate employee honesty by measuring psychological traits. Personality-based  The two general categories of stakeholders are ____ stakeholders and ____ stakeholders. primary; secondary  In an article about BP Amoco, its CEO said that the company's commitment to ____ is all about trying to align its policies, values, and behavior with those of the societies in which it operates because, ultimately, superior performance means being in touch social responsibility  Refer to Unilever. A need to be concerned about ____ diversity was revealed by the retreat in Costa Rica. surface-level  Which of the following paradigms for managing diversity is similar to the business growth advantage of diversity? the access and legitimacy paradigm  ____ helps companies grow by improving the quality of problem solving and improving marketplace understanding. Diversity  When AT&T hired a female as its president, it was evidence that AT&T does not have a(n) ____ to prevent women from rising to leadership positions. glass ceiling  A family restaurant based in the English speaking providence of Ontario, was planning on opening a catering business in the French-speaking areas of Canada, This restaurant would need employees with which of the following dimensions of personality? openness to experience  Which of the following is NOT one of the Big Five personality dimensions? empathy  What action can a medium-sized manufacturing company take if it wants to create a positive work environment; where every employee does his or her best work and individual differences are respected and not just ignored? create a diversity program  Unilever has operations in 150 countries. Recently, Unilever took 100 of these top managers on a jungle retreat to Costa Rica. To the dismay of Unilever's chair, there were no women in the group. Upon investigation, he learned that only one woman had even been invited. As the retreat progressed, its participants commented on the richness of diversity in nature and how everything needs diversity to grow. These comments caused Unilever's chair to establish an executive committee to examine practical ways to overcome barriers to women's promotion. They decided to avoid setting numerical targets because they encourage positive discrimination and instead examined recruitment and promotion practices. Refer to Unilever. This is an example of a diversity program because it ____. is done voluntarily  Refer to Unilever. After studying the problem, the executive committee discovered that the company recruited the same number of men and women, but women were not being promoted to the top management positions. This probably resulted from the existence of a(n) ____. glass ceiling  The primary benefit of the ____ paradigm is that it generally brings about fairer treatment of employees and increases demographic diversity. discrimination and fairness paradigm  Which of the following is the most commonly used paradigm for managing diversity? the discrimination and fairness paradigm  According to a recent census, over 40 percent of the Australian population was born overseas or had one parent born overseas. The abilities of these immigrants add value to the Australian workplace. The Australian government would have employers welcome these migrants and their children into their organizations as valued workers. Which paradigm for managing diversity does the Australian government most likely support? the access and legitimacy paradigm  Recently, the cable television networks have bombarded viewers with a variety of shows based around teams that come in to redecorate homes and gardens in a very short time frame. Since these teams are typically made up of men and women of different ethnic backgrounds, age, and physical capabilities, the fact they work so well with each other to accomplish the redecorating goal is an example of ____. social integration  To make sure that people with disabilities have the same opportunities as everyone else, organizations can ____. make a commitment to reasonable workplace accommodations  The glass ceiling is most closely associated with ____. ethnic, racial, and gender discrimination  People with the Big Five dimension of ____ respond well under stress. emotional stability  Japanese-based Honda Motors recently opened a manufacturing plant in China. The Chinese balked at wearing the standard Honda white uniforms because white in China is a funeral color. The Chinese workers agreed to wear the white uniforms if they could wear gray caps. The compromise made everyone happy. This cultural sensitivity is an example of how ____ influences organizations. diversity  Which of the Big Five personality measures has the greatest impact on behavior in organizations? conscientiousness  According to the path-goal theory, which of the following is an example of an environmental contingency? the formal authority system  Larry Tobin is now president of Fairwinds Credit Union in Florida. After Mr. Tobin assumed the presidency at Fairwinds, he made several personnel changes. Which of the following seems most important to Tobin? situational favorableness  Which of the following is a major concern of leaders (as opposed to managers)? inspiring and motivating others  Transformational leaders that pay special attention to followers' individual needs by creating learning opportunities, accepting and tolerating individual differences, encouraging two-way communication, and practice being a good listener describes the component of transformational leadership known as ____? Strategic leadership  Leaders who possess the trait of ____ are more decisive and assertive and more likely to gain others' confidence. self-confidence  Refer to Oakland Athletics. Other teams have an average payroll of $85 million. Beane's payroll for the Athletics is only $33 million. His ability to be frugal and yet build a successful team is in large part due to his ability to set goals, give directions, and assign tasks. In other words, Beane excels in ____. initiating structure • Question 1 3 out of 3 points According to the U.S. Sentencing Commission Guidelines, what is one method used to determine the level of the offense (i.e., the seriousness of the problem)? Answer examining the loss incurred by the victims examining the loss incurred by the victims • Question 2 3 out of 3 points A company implementing a(n) ________ strategy would choose to accept responsibility for a problem and do all that society expects to solve problems. Answer accommodative accommodative • Question 3 3 out of 3 points 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) ________. Answer primary stakeholder primary stakeholder • Question 4 3 out of 3 points Historically, ________ responsibility means making a profit by producing a product valued by society. It has been the most basic social responsibility of a business. Answer economic economic • Question 5 0 out of 3 points According to Kohlberg's model of moral development, people at the ________ make decisions that conform to societal expectations. Answer postconventional level conventional level • Question 6 3 out of 3 points A consumer advocacy group is critical of ads by the U.S. Postal Service (USPS) that claim its Priority Mail is a low-cost, two-day service while failing to disclose that first-class letters generally reach their destination just as quickly and for a tenth the cost. The consumer advocacy group wants the USPS to take ________ responsibility for its actions and do what is right. Answer ethical ethical • Question 7 3 out of 3 points According to Kohlberg's model of moral development, people at the ________ use internalized ethical principles to solve ethical dilemmas. Answer postconventional level postconventional level • Question 8 3 out of 3 points The two general categories of stakeholders are ________ stakeholders and ________ stakeholders. Answer primary; secondary primary; secondary • Question 9 3 out of 3 points ________ integrity tests indirectly estimate employee honesty by measuring psychological traits. Answer Personality-based Personality-based • Question 10 3 out of 3 points ________ stakeholders are groups, such as shareholders, employees, customers, suppliers, governments, and local communities, on which the organization depends for long-term survival. Answer Primary Primary • Question 11 3 out of 3 points Companies are not considered unethical if they do not perform their ________ responsibilities. Answer discretionary discretionary • Question 12 3 out of 3 points The ________ determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn't know about the unethical behavior. Answer U.S. Sentencing Commission Guidelines U.S. Sentencing Commission Guidelines • Question 13 3 out of 3 points The three stages of moral development identified by Kohlberg are ________. Answer preconventional level, conventional level, and postconventional level preconventional level, conventional level, and postconventional level • Question 14 3 out of 3 points What term describes the degree of concern people have about an ethical issue? Answer ethical intensity ethical intensity • Question 15 3 out of 3 points The ________ model holds that the only social responsibility that businesses have is to maximize profit. Answer shareholder shareholder • Question 16 3 out of 3 points Budgets are an example of ________ planning. Answer operational operational • Question 17 0 out of 3 points There are three kinds of ________ plans. They are single-use plans, standing plans, and budgets. Answer operational actionable • Question 18 3 out of 3 points Who is primarily responsible for developing operational plans? Answer lower-level managers lower-level managers • Question 19 3 out of 3 points Which of the following is a commonly used method for increasing goal commitment? Answer make goals public make goals public • Question 20 3 out of 3 points Which of the following is a commonly used method for increasing goal commitment? Answer encouraging worker participation in goal setting encouraging worker participation in goal setting • Question 21 3 out of 3 points ________ planning keeps options open by making small, simultaneous investments in many alternative plans. Answer Options-based Options-based • Question 22 3 out of 3 points The use of ________ in planning produces a false sense of certainty and is often cited as one of the major pitfalls of planning. Answer assumptions assumptions • Question 23 3 out of 3 points ________ is the emotional reaction that can occur when disagreements become personal rather than professional. Answer A-type conflict A-type conflict • Question 24 3 out of 3 points What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturer? Answer single-use plan single-use plan • Question 25 3 out of 3 points In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling pirated Coke in dumped bottles. The company recognized this unauthorized bottler as a(n) ________. Answer problem problem • Question 26 3 out of 3 points ________ occurs when managers choose an alternative that is good enough, rather than the best possible alternative. Answer Satisficing Satisficing • Question 27 3 out of 3 points At a canning factory, new employees were instructed never to wear loose-fitting clothes when working around the canning machine. What kind of a standing plan is described in this example? Answer rules and regulations rules and regulations • Question 28 3 out of 3 points In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and include evacuating buildings. What kind of a standing plan is described in this example? Answer procedures procedures • Question 29 3 out of 3 points Top management is responsible for developing long-term ________ that make clear how the company will serve customers and position itself against competitors in the next two to five years. Answer strategic plans strategic plans • Question 30 3 out of 3 points According to the S.M.A.R.T. guidelines, goals should be ________. Answer Timely Timely Question 1 3 out of 3 points Companies that are following a ____ strategy would be most likely to try to improve the way in which they sell the same goods or services to the same customers. Answer stability stability Question 2 3 out of 3 points Imagine Dow Chemical is conducting a situational analysis. According to its sales, Dow is the second largest chemical company in the world. BASF is the largest. Both companies use a similar strategy. Within Dow's situational analysis, BASF would be classified as a ____. Answer core firm core firm Question 3 3 out of 3 points Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines of products or services would be characteristic of a ____ strategy. Answer retrenchment retrenchment Question 4 3 out of 3 points Resource similarity and ____ are factors that determine the extent to which firms will be in direct competition with each other. Answer market commonality market commonality Question 5 3 out of 3 points The research on diversification in portfolio management indicates that the best approach is probably ____. Answer related diversification related diversification Question 6 3 out of 3 points Which of the following organizations are most directly in competition with each other? Answer FedEx and UPS FedEx and UPS Question 7 3 out of 3 points A(n) ____ is a resource that is impossible or extremely costly or difficult for other firms to duplicate. Answer imperfectly imitable imperfectly imitable Question 8 3 out of 3 points Companies often choose a ____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth. Answer stability stability Question 9 3 out of 3 points _______ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem. Answer resources resources Question 10 3 out of 3 points Deutsche Bank became the world’s largest bank through mergers with Bankers Trust, a transatlantic banking operation. Since both banking companies had similar core capabilities, this would be classified as an example of ____. Answer related diversification related diversification Question 11 3 out of 3 points The ____ strategy is analogous to pruning flowers. Answer retrenchment/recovery retrenchment/recovery Question 12 0 out of 3 points In a situational analysis, a strategic group is a group of ____ that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities. Answer non-industry specific companies other firms within an industry Question 13 3 out of 3 points A ____, also called a SWOT analysis for strengths, weaknesses, opportunities, and threats, is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment. Answer situational analysis situational analysis Question 14 3 out of 3 points A(n) ____ resource is a resource that is not controlled or possessed by many competing firms. Answer rare rare Question 15 3 out of 3 points The first step in the strategy-making process is to ____. Answer assess the need for strategic change assess the need for strategic change Question 16 3 out of 3 points When resistance to change is based on insufficient, incorrect, or misleading information, managers should use ____ as an approach to manage resistance. Answer education and communication education and communication Question 17 3 out of 3 points Unverferth Manufacturing makes agricultural equipment. It used finite element analysis (FEA) software to speed up the design cycle for its 12-row sub-soiler. Which aspect of the compression approach to innovation would the use of this software apply? Answer shortening the time of individual steps shortening the time of individual steps Question 18 3 out of 3 points Organizational ____ is the successful implementation of creative ideas in organizations. Answer innovation innovation Question 19 3 out of 3 points ____ is the phase of a technology cycle characterized by technological substitution and design competition. Answer Discontinuous change Discontinuous change Question 20 3 out of 3 points The goals of the compression approach to innovation are ____. Answer speed, lower costs, and incremental change of dominant design speed, lower costs, and incremental change of dominant design Question 21 3 out of 3 points Companies need to excel at managing ____ in order to successfully manage innovation streams. Answer the sources of innovation the sources of innovation Question 22 3 out of 3 points Creativity was needed to improve efficiency without raising costs at one automobile maker. Over the last few years, the company has successfully implemented a creative engineering program that allows its plants to produce more than one type of car from the same assembly line. This successful change to a flexible manufacturing system is an example of ____. Answer organizational innovation organizational innovation Question 23 3 out of 3 points The purchase of new technologies to replace older ones is an example of ___. Answer technological substitution technological substitution Question 24 3 out of 3 points A technology cycle occurs whenever there are major advances or changes in the ____ in a field or discipline. Answer knowledge, tools, and techniques knowledge, tools, and techniques Question 25 3 out of 3 points It is appropriate to use a(n) ____ approach to manage innovation in more certain environments during periods of incremental change, in which the goals are lower costs and incremental improvements in the performance and function of the existing technological design. Answer compression compression Question 26 3 out of 3 points Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions? Answer coercion coercion Question 27 3 out of 3 points Which of the following is one of the sources of resistance to change? Answer self-interest self-interest Question 28 3 out of 3 points An innovation stream moves from one technology cycle to another through the process of ____. Answer technological substitution technological substitution Question 29 3 out of 3 points ____ is the knowledge, tools, and techniques used to transform inputs into outputs. Answer Technology Technology Question 30 3 out of 3 points Kodak is a company associated with photography. The development of the digital camera forced Kodak into the innovation stream because the new imaging process was a(n) ____. Answer technological discontinuity technological discontinuity • Question 1 3 out of 3 points A(n) ____ resource is a resource that is not controlled or possessed by many competing firms. Answer rare rare • Question 2 3 out of 3 points When Clorox Corporation, a manufacturer of bleach and bleach-based cleaning products, acquired Kingsford Charcoal and Prime Choice brand steak sauce; it was an example of ____. Answer unrelated diversification unrelated diversification • Question 3 3 out of 3 points A sustainable competitive advantage exists for an organization when other companies have tried unsuccessfully to duplicate the advantage and ____. Answer those companies have, for the moment, stopped trying to duplicate the advantage those companies have, for the moment, stopped trying to duplicate the advantage • Question 4 3 out of 3 points In a situational analysis, a strategic group is a group of ____ that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities. Answer other firms within an industry other firms within an industry • Question 5 3 out of 3 points The purpose of a ____ strategy is to turn around very poor company performance by shrinking the size or scope of the business. Answer retrenchment retrenchment • Question 6 3 out of 3 points McDonald's uses a ____ strategy (a kind of grand strategy) as it increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's version of a popular French grilled sandwich. Answer growth growth • Question 7 3 out of 3 points Glassmaker AFG Industries positions itself as the primary supplier of glass used in microwave doors, shower doors, and patio tables. What type of a positioning strategy does the glass manufacturer use? Answer focus focus • Question 8 3 out of 3 points The ____ strategy is analogous to pruning flowers. Answer retrenchment/recovery retrenchment/recovery • Question 9 3 out of 3 points From a competitive standpoint, ____ means that the strategic actions your company takes can probably be matched by your direct competitors. Answer resource similarity resource similarity • Question 10 3 out of 3 points A(n) ____ strategy is a corporate strategy that addresses the question "How should we compete in this industry?" Answer industry-level industry-level • Question 11 3 out of 3 points The ____ is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds. Answer BCG matrix BCG matrix • Question 12 3 out of 3 points _______ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem. Answer resources resources • Question 13 3 out of 3 points A(n) ____ is a resource that is impossible or extremely costly or difficult for other firms to duplicate. Answer imperfectly imitable imperfectly imitable • Question 14 3 out of 3 points Which of the following organizations are most directly in competition with each other? Answer FedEx and UPS FedEx and UPS • Question 15 3 out of 3 points ____ is the measure of the intensity of competitive behavior between companies in an industry. Answer Character of the rivalry Character of the rivalry • Question 16 3 out of 3 points Organizational ____ is the successful implementation of creative ideas in organizations. Answer innovation innovation • Question 17 3 out of 3 points A(n) ____ is the individual who is formally in charge of guiding a change effort. Answer change agent change agent • Question 18 0 out of 3 points Unverferth Manufacturing makes agricultural equipment. It used finite element analysis (FEA) software to speed up the design cycle for its 12-row sub-soiler. Which aspect of the compression approach to innovation would the use of this software apply? Answer supplier involvement shortening the time of individual steps • Question 19 3 out of 3 points An innovation stream moves from one technology cycle to another through the process of ____. Answer technological substitution technological substitution • Question 20 3 out of 3 points What is the first step for managing innovation during discontinuous change? Answer design iteration design iteration • Question 21 3 out of 3 points The purchase of new technologies to replace older ones is an example of ___. Answer technological substitution technological substitution • Question 22 3 out of 3 points Which of the following is one of the three steps in the basic process of managing organizational change outlined by Kurt Lewin? Answer unfreezing unfreezing • Question 23 3 out of 3 points ____ refers to the production of novel and useful ideas. Answer Creativity Creativity • Question 24 3 out of 3 points 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. Answer generational change generational change • Question 25 3 out of 3 points Which of the following is one of the sources of resistance to change? Answer self-interest self-interest • Question 26 3 out of 3 points In terms of innovation streams, what ____ occurred when customers purchased flat-screen computer monitors to replace the older, bulkier monitors. Answer technological substitution technological substitution • Question 27 3 out of 3 points ____ is the phase of a technology cycle characterized by technological substitution and design competition. Answer Discontinuous change Discontinuous change • Question 28 3 out of 3 points The three steps in the basic process of managing organizational change outlined by Kurt Lewin are ____. Answer unfreezing, change intervention, and refreezing unfreezing, change intervention, and refreezing • Question 29 3 out of 3 points A technology cycle occurs whenever there are major advances or changes in the ____ in a field or discipline. Answer knowledge, tools, and techniques knowledge, tools, and techniques • Question 30 3 out of 3 points The development of the DVD player was a source of ____ to companies in the movie industry just as VHS tapes had once been. Answer technological discontinuity technological discontinuity Saturday, October 25, 2014 10:02:22 PM EDT • Question 1 3 out of 3 points From a competitive standpoint, ____ means that the strategic actions your company takes can probably be matched by your direct competitors. Answer resource similarity resource similarity • Question 2 3 out of 3 points McDonald's uses a ____ strategy (a kind of grand strategy) as it increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's version of a popular French grilled sandwich. Answer growth growth • Question 3 3 out of 3 points Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines of products or services would be characteristic of a ____ strategy. Answer retrenchment retrenchment • Question 4 3 out of 3 points An organization is experiencing ____ when there is a discrepancy between upper management's intended strategy and the strategy actually implemented by the lower levels of management. Answer strategic dissonance strategic dissonance • Question 5 3 out of 3 points When Clorox Corporation, a manufacturer of bleach and bleach-based cleaning products, acquired Kingsford Charcoal and Prime Choice brand steak sauce; it was an example of ____. Answer unrelated diversification unrelated diversification • Question 6 3 out of 3 points A ____ strategy is a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use. Answer grand grand • Question 7 3 out of 3 points _______ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem. Answer resources resources • Question 8 3 out of 3 points The research on diversification in portfolio management indicates that the best approach is probably ____. Answer related diversification related diversification • Question 9 3 out of 3 points ____ is the measure of the intensity of competitive behavior between companies in an industry. Answer Character of the rivalry Character of the rivalry • Question 10 3 out of 3 points Deutsche Bank became the world’s largest bank through mergers with Bankers Trust, a transatlantic banking operation. Since both banking companies had similar core capabilities, this would be classified as an example of ____. Answer related diversification related diversification • Question 11 3 out of 3 points Companies that are following a ____ strategy would be most likely to try to improve the way in which they sell the same goods or services to the same customers. Answer stability stability • Question 12 3 out of 3 points In a situational analysis, a strategic group is a group of ____ that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities. Answer other firms within an industry other firms within an industry • Question 13 3 out of 3 points The purpose of a ____ strategy is to turn around very poor company performance by shrinking the size or scope of the business. Answer retrenchment retrenchment • Question 14 3 out of 3 points Companies often choose a ____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth. Answer stability stability • Question 15 3 out of 3 points Cost leadership, differentiation, and focus are the three types of ____ strategies discussed in the text. Answer positioning positioning • Question 16 3 out of 3 points The ____ approach to innovation assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding. Answer experiential experiential • Question 17 3 out of 3 points Companies need to excel at managing ____ in order to successfully manage innovation streams. Answer the sources of innovation the sources of innovation • Question 18 3 out of 3 points A technology cycle occurs whenever there are major advances or changes in the ____ in a field or discipline. Answer knowledge, tools, and techniques knowledge, tools, and techniques • Question 19 3 out of 3 points The development of the DVD player was a source of ____ to companies in the movie industry just as VHS tapes had once been. Answer technological discontinuity technological discontinuity • Question 20 3 out of 3 points Organizational ____ is the successful implementation of creative ideas in organizations. Answer innovation innovation • Question 21 3 out of 3 points An innovation stream moves from one technology cycle to another through the process of ____. Answer technological substitution technological substitution • Question 22 3 out of 3 points ____ is the knowledge, tools, and techniques used to transform inputs into outputs. Answer Technology Technology • Question 23 0 out of 3 points It is appropriate to use a(n) ____ approach to manage innovation in more certain environments during periods of incremental change, in which the goals are lower costs and incremental improvements in the performance and function of the existing technological design. Answer milestones compression • Question 24 3 out of 3 points Which of the following is one of the three steps in the basic process of managing organizational change outlined by Kurt Lewin? Answer unfreezing unfreezing • Question 25 3 out of 3 points A(n) ____ is the individual who is formally in charge of guiding a change effort. Answer change agent change agent • Question 26 3 out of 3 points Creativity was needed to improve efficiency without raising costs at one automobile maker. Over the last few years, the company has successfully implemented a creative engineering program that allows its plants to produce more than one type of car from the same assembly line. This successful change to a flexible manufacturing system is an example of ____. Answer organizational innovation organizational innovation • Question 27 3 out of 3 points Unverferth Manufacturing makes agricultural equipment. It used finite element analysis (FEA) software to speed up the design cycle for its 12-row sub-soiler. Which aspect of the compression approach to innovation would the use of this software apply? Answer shortening the time of individual steps shortening the time of individual steps • Question 28 3 out of 3 points The three steps in the basic process of managing organizational change outlined by Kurt Lewin are ____. Answer unfreezing, change intervention, and refreezing unfreezing, change intervention, and refreezing • Question 29 3 out of 3 points ____ forces support the status quo. Answer Resistance Resistance • Question 30 3 out of 3 points 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. Answer generational change generational change Chapter 7—Innovation and Change MGMT6 TRUE/FALSE 1. Organizational innovation is defined as “doing things differently” inside an organization. Organizational innovation is the successful implementation of creative ideas in an organization. PTS: 1 DIF: Easy REF: 7.1 TOP: AACSB Analytic KEY: Creation of Value | HRM | Operations Management 2. A technology cycle begins with the birth of a new technology and ends when that technology reaches its limits and dies; it is then replaced by newer, substantially better technology. PTS: 1 DIF: Easy REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Environmental Influence | Information Technologies | Strategy 3. Nearly all technology cycles follow a bell-shaped pattern of innovation. Nearly all technology cycles follow a typical S-curve pattern of innovation. See Exhibit 7.1. PTS: 1 DIF: Moderate REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Environmental Influence | Information Technologies | Strategy 4. 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. PTS: 1 DIF: Moderate REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy 5. Companies that want to sustain a competitive advantage must understand and protect themselves from the strategic threats of innovation. PTS: 1 DIF: Easy REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 6. Innovation streams are patterns of innovation over time that can create sustainable competitive advantage. PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 7. An innovation stream begins with a technological discontinuity, which is a scientific advance or a unique combination of existing technologies creating a significant breakthrough in performance or function. PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 8. Technological innovation not only makes it possible to duplicate the benefits obtained from a company's distinctive advantage but also quickly creates an opportunity to turn a company's competitive advantage into a competitive disadvantage. 9. Technology cycles for low-tech products follow the typical U-curve pattern cycle of innovation. All technology cycles typically follow an S-curve pattern of innovation. PTS: 1 DIF: Difficult REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 10. Technological discontinuities are followed by discontinuous change characterized by technological substitution and design competition. PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 11. Dominant designs emerge because they solve a practical problem, are a result of the negotiations of independent standards bodies, or because of critical mass. PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 12. The same techniques for managing innovation work equally as well after technological discontinuities as during periods of incremental change. What works well when managing innovation after technological discontinuities doesn't work well when managing innovation during periods of incremental change (and vice versa). PTS: 1 DIF: Easy REF: 7.2 TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy | Environmental Influence 13. A creative work environment requires organizational encouragement and supervisory encouragement as well as work group encouragement. PTS: 1 DIF: Easy REF: 7.2a TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles 14. The three parts of the experiential approach to innovation are design iterations, testing, and milestones. ANS: F There are five parts to the experiential approach to innovation: design iterations, testing, milestones, multifunctional teams, and powerful leaders. PTS: 1 DIF: Moderate REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Operations Management 15. Milestones are formal review points that tend to lengthen the innovation process. Milestones are formal review points that shorten the innovation process. PTS: 1 DIF: Difficult REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Operations Management 16. Fully functional change occurs when incremental improvements are made to a dominant technological design. In a fully functional change, the improved version of the technology is fully backward compatible with the older version. Generational change occurs when incremental improvements are made to a dominant technological design so that the improved version of the technology is fully backward compatible with the older version. PTS: 1 DIF: Easy REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Operations Management | Information Technologies 17. According to Kurt Lewin, managing organizational change is a simple process that requires organizational dialogue, change intervention, and reformatting. According to Kurt Lewin, managing organizational change is a basic process of unfreezing, change intervention, and refreezing. PTS: 1 DIF: Easy REF: 7.4 TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles 18. Resistance to change usually results from organizational factors: such as the absence of promotion guidelines, bonuses, and praise. ANS: F Resistance to change results from personal factors such as self-interest, misunderstanding and distrust, and a general intolerance for change. PTS: 1 DIF: Moderate REF: 7.4 TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 19. Even though education and communication, participation, negotiation, top management support, and coercion can all be used to manage resistance to change, coercion should be used only in a crisis or as a last resort. ANS: T PTS: 1 DIF: Difficult REF: 7.4a TOP: AACSB Analytic| AACSB Ethics| AACSB Communication KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Ethical Responsibilities 20. Declaring victory too soon is one of the mistakes managers often make in the refreezing stage of change. PTS: 1 DIF: Moderate REF: 7.4b TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles 21. Results-driven change focuses primarily on changing company procedures, management philosophy, or employee behavior. This is the definition of activity-oriented change. By contrast, results-driven change supplants the sole emphasis on activity with a laser-like focus on quickly measuring and improving results. PTS: 1 DIF: Moderate REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | HRM | Leadership Principles 22. The General Electric Workout is a special kind of activity-oriented change. The General Electric Workout is a special kind of results-driven change. PTS: 1 DIF: Difficult REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles MULTIPLE CHOICE 1. Organizational ____ is the successful implementation of creative ideas in organizations. a. change b. innovation c. creativity d. development e. deployment Definition of organizational innovation. PTS: 1 DIF: Easy REF: 7.1 TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles 2. Creativity was needed to improve efficiency without raising costs at one automobile maker. Over the last few years, the company has successfully implemented a creative engineering program that allows its plants to produce more than one type of car from the same assembly line. This successful change to a flexible manufacturing system is an example of ____. a. corporate synergy b. organizational innovation c. assembly networking d. organizational networking e. reverse engineering Organizational innovation is the successful implementation of creative ideas in organizations. PTS: 1 DIF: Easy REF: 7.1 TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Operations Management 3. 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 ____. a. corporate synergy b. organizational innovation c. assembly networking d. organizational networking e. reverse engineering Organizational innovation is the successful implementation of creative ideas in organizations-, in this case the risk-free trial offer. PTS: 1 DIF: Moderate REF: 7.1 TOP: AACSB Analytic KEY: Creation of Value | Strategy 4. The development of the DVD player was a source of ____ to companies in the movie industry just as VHS tapes had once been. a. a sustainable competitive advantage b. creativity reengineering c. technological discontinuity d. planned shrinkage e. technological replacement A technological discontinuity creates a significant breakthrough in performance or function. PTS: 1 DIF: Moderate REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 5. ____ is the knowledge, tools, and techniques used to transform inputs into outputs. a. Resource manipulation b. Procedural innovation c. A transformation system d. Technology e. Creativity PTS: 1 DIF: Easy REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Environmental Influence | Information Technologies | Strategy 6. A technology ____ begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology. a. process b. pattern c. cycle d. hierarchy e. continuum PTS: 1 DIF: Easy REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Environmental Influence | Information Technologies | Strategy 7. Nearly all technology cycles follow the typical ____ pattern of innovation. a. W-curve b. U-curve c. bell-shaped d. S-curve e. V-shaped See Exhibit 7.1. PTS: 1 DIF: Moderate REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 8. In the typical S-curve pattern of innovation, increased effort (i.e., money, research and development) brings only small improvements in technological performance ____, a. early in the cycle b. throughout the cycle c. at the end of the cycle d. at both the beginning and end of the cycle e. in the maturity stage of the cycle PTS: 1 DIF: Difficult REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 9. In the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance ____. a. during the growth stage of the cycle b. at the midpoint of the cycle c. only at the end of the cycle d. throughout the cycle e. only at the beginning of the cycle ANS: B PTS: 1 DIF: Difficult REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 10. In the typical S-curve pattern of innovation, increased effort (i.e., money, research, and development) brings only small improvements in technological performance when performance limits of the technology are reached ____. a. during the introductory stage of the cycle b. at the breakeven point of the cycle c. during the maturity stage of the innovation cycle d. throughout the cycle e. at the end of the cycle ANS: E The curve flattens at the beginning and ending of cycles, creating the characteristic “S” shape. The flat curve signifies less return on effort. PTS: 1 DIF: Moderate REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 11. When significant improvements in performance can ONLY be gained through radical new designs or new performance-enhancing materials, it is likely that a company is ____ in the S-curve pattern of innovation. a. at its breakeven point b. at the problem identification stage of the innovation cycle c. at the end of the innovation cycle d. at either the beginning or end of the innovation cycle e. at the end of its maturity stage ANS: C PTS: 1 DIF: Difficult REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 12. A technology cycle occurs whenever there are major advances or changes in the ____ in a field or discipline. a. human, technical, and conceptual skills needed b. structure or personnel requirements c. internal resource environment d. knowledge, tools, and techniques e. way information is integrated ANS: D PTS: 1 DIF: Moderate REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 13. Patterns of innovation over time that can create sustainable competitive advantage are called ____. a. innovation maps b. organization development c. results-driven change d. innovation streams e. cyclical inventions ANS: D PTS: 1 DIF: Difficult REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 14. An innovation stream moves from one technology cycle to another through the process of ____. a. technological substitution b. dominant design c. incremental environmental change d. organizational synergy e. transition management ANS: A PTS: 1 DIF: Easy REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 15. In terms of innovation streams, what ____ occurred when customers purchased flat-screen computer monitors to replace the older, bulkier monitors. a. technological substitution b. technological expansion c. reengineering d. demarketing e. the pioneering era ANS: A Technological substitution is the purchase of new technologies to replace old ones. PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 16. 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? a. technological adaptation b. the era of dominant design c. the technological growth stage d. change substitution e. discontinuous change ANS: E Discontinuous change is the stage of the technology cycle characterized by technological substitution and design competition. DaimlerChrysler substituted new technology for the old technology in order to improve its efficiency. PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy | Environmental Influence 17. Kodak is a company associated with photography. The development of the digital camera forced Kodak into the innovation stream because the new imaging process was a(n) ____. a. technological subtraction b. technological discontinuity c. process obsolescence d. process addition e. example of design advantage ANS: B Technological discontinuity is a scientific advance that creates a significant breakthrough in performance or function. PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 18. Kodak is a company associated with photography. The company has recognized that digital photography is a threat to the future growth of the company’s film business. Therefore, the company has decided to become a market leader in digital imaging. As Kodak tried to compete in this new innovation stream, it entered ____. a. technological adaptation b. the era of dominant design c. the technological growth stage d. change substitution e. discontinuous change ANS: E Discontinuous change is the phase of the technology cycle characterized by technological substitution and design competition. PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic KEY: Strategy | Creation of Value | Environmental Influence 19. Kodak is a company associated with photography. The company has recognized that digital photography is a threat to the future growth of the company. Therefore, the company has decided to become a market leader in digital imaging while still providing customer support for people still using film cameras. The existence of both technologies is an example of ____. a. design substitution b. modular management c. design competition d. hierarchical management e. a creative flow ANS: C Design competition is competition between old and new technologies in order to establish a dominant design. PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic | AACSB Technology KEY: Creation of Value | Strategy | Information Technologies 20. ____ is the phase of a technology cycle characterized by technological substitution and design competition. a. Technological adaptation b. The era of dominant design c. The technological growth stage d. Change substitution e. Discontinuous change ANS: E PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 21. The purchase of new technologies to replace older ones is an example of ___. a. adaptive change b. design replacement c. technological substitution d. dominant design e. innovative exchange ANS: C PTS: 1 DIF: Easy REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Environmental Influence | Information Technologies | Strategy 22. Discontinuous change in an innovation stream is characterized by ____. a. synergy b. technological substitution c. incremental change d. empathetic design e. innovative reciprocity ANS: B PTS: 1 DIF: Difficult REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Environmental Influence | Information Technologies | Strategy 23. During the ____ phase of a technology cycle, companies innovate by lowering the cost and improving the functioning and performance of the dominant design. a. technological discontinuity b. discontinuous change c. dominant design d. incremental change e. technological continuity ANS: D PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 24. In order from beginning to end, the phases of a technology cycle within an innovation stream consist of ____. a. incremental change, discontinuous change, dominant design, and technological discontinuity b. discontinuous change, incremental change, technological discontinuity, and dominant design c. dominant design, discontinuous change, era of incremental change, and technological discontinuity d. technological discontinuity, discontinuous change, dominant design, and incremental change e. technological discontinuity, incremental change, discontinuous change, and technological continuity See Exhibit 7.2. PTS: 1 DIF: Difficult REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 25. The auto industry has been perfecting the internal combustion engine (ICE) for some 120 years. The Partnership for a New Generation of Vehicles (PNGV), a cooperative program between the Big Three and the U.S. government to replace ICEs with electric engines, has been operating since 1993. The internal combustion engine (ICE) is an example of ____. a. a dominant design b. design dichotomy c. a synergistic design d. a differential design e. a dichotomous product A dominant design refers to the technology that is the accepted market standard. PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 26. Titleist has been manufacturing golf balls for several years, but each year it comes out with new golf ball designs. Titleist's development of the new Pro VI golf ball with a solid core designed to benefit players with high swing speeds is one example of how the manufacturer survives through ____. a. technological discontinuity b. discontinuous change c. dominant design d. incremental change e. technological continuity During the incremental change phase of a technology cycle, companies innovate by improving the functioning and performance of the dominant design. PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 27. Companies need to excel at managing ____ in order to successfully manage innovation streams. a. the sources of innovation b. innovation during synergistic change c. reciprocity d. environmental design issues e. behavioral formality PTS: 1 DIF: Easy REF: 7.2a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 28. ____ are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged. a. Creative work environments b. Innovative societies c. Homogeneous work environments d. Participative work teams e. Empathetic work stations PTS: 1 DIF: Easy REF: 7.2a TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 29. Which of the following is NOT one of the components of creative work environments? a. challenging work b. group compensation c. freedom d. supervisory encouragement e. organizational encouragement See Exhibit 7.3. PTS: 1 DIF: Easy REF: 7.2a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 30. Which of the following is a component of a creative work environment that encourages creativity? a. the development of challenging work b. organizational encouragement c. the granting of autonomy d. the removal of organizational impediments e. all of these PTS: 1 DIF: Moderate REF: 7.2a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 31. Kodak is a company associated with photography and has decided to become a market leader in digital imaging. Kodak can encourage the development of a culture where workers perceive that new ideas are welcomed by offering challenging work and supervisory encouragement. In other words, the company can create a(n) ____. a. creative work environment b. open system c. adaptive culture d. culture of change e. tall structure to encourage horizontal communications PTS: 1 DIF: Moderate REF: 7.2a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 32. Hewlett-Packard is currently exploring new products and markets through the development of digital imaging products in its plants in India, South Africa, and the United States. To jump-start this innovative process, Hewlett-Packard can ____ across all of its plants around the world. a. manage flow through the use of Gantt charts b. concentrate on dominant design and ignore incremental design c. engage in creative reciprocity d. establish creative work environments e. do none of these A creative work environment is a workplace culture in which workers perceive that new ideas are welcomed, valued, and encouraged. It is an important precondition for exploring new products and markets. PTS: 1 DIF: Difficult REF: 7.2a TOP: AACSB Analytic KEY: Environmental Influence | Creation of Value 33. Which of the following is an organizational impediment to creativity in a work environment? a. internal conflict b. rigid management structures c. bias toward the status quo (i.e., a conservative environment) d. power struggles e. all of these PTS: 1 DIF: Moderate REF: 7.2a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 34. Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row strip-till subsoiler, which prepares 10-inch-wide seed beds spaced 40 inches apart. Before introducing the new tiller to the market, Unverferth developed and tested nearly three-dozen product prototypes. Unverferth used the ____ approach to innovation. a. compression b. experiential c. technological substitution d. generational change e. technological disruption The experiential approach to innovation assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding. PTS: 1 DIF: Moderate REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy | Environmental Influence 35. Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row subsoiler, which prepares 10-inch-wide seed beds spaced 40 inches apart. Before introducing the new tiller to the market, Unverferth developed and tested nearly three dozen product prototypes. Unverferth used ____ to produce the best possible tiller before introducing it to the market. a. service development b. process duplication c. design iteration d. design compliance e. process reengineering Design iteration is a cycle of repetition in which a company tests a prototype of a new product, improves on that design, and then builds and tests a new prototype. PTS: 1 DIF: Moderate REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 36. The ____ approach to innovation assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding. a. compression b. experiential c. technological substitution d. generational change e. technological disruption PTS: 1 DIF: Easy REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 37. Which of the following is NOT a part of the experiential approach to innovation? a. hands-on experience to reduce uncertainty b. testing c. multifunctional teams d. design iterations e. initiative conversations ANS: E PTS: 1 DIF: Moderate REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy 38. Covisint is an e-commerce venture involving many car manufacturers that allows carmakers access to online auctions for buying component parts and materials. Because the idea of such a Web site was a new concept, the prototype site was built and tested, then revised and rebuilt for further testing before the Web site was ever offered to customers. The management concept of ____ was used to develop Covisint. a. serve development b. process duplication c. design iteration d. design compliance e. process reengineering ANS: C Design iteration is a cycle of repetition in which a company tests a prototype of a new product, improves on that design, and then builds and tests a new prototype. PTS: 1 DIF: Moderate REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy 39. The use of milestones in the experiential approach to innovation ____. a. serves to eliminate manufacturing bottlenecks b. shortens the innovation process c. creates incrementally sustainable advantages d. virtually eliminates problems associated with the control function of management e. does all of these ANS: B PTS: 1 DIF: Moderate REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy 40. What is the first step for managing innovation during discontinuous change? a. design iteration b. budgeting c. the establishment of a dominant design d. supplier involvement e. process duplication ANS: A Design iteration is a cycle of repetition in which a company tests a prototype of new product or service, improves on that design, and then test the improved prototype. This iterative process is basic to managing innovation. PTS: 1 DIF: Moderate REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy 41. The use of milestones in the experiential approach to innovation ____. a. provides structure to the general chaos that follows technological discontinuities b. shortens the innovation process c. builds momentum by giving people a sense of accomplishment d. lets an organization know when to take corrective action e. does all of these ANS: E PTS: 1 DIF: Difficult REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy 42. The purpose of multifunctional teams is to ____. a. allow organizations to concentrate on their internal environments and ignore the external environments until they have completed the brainstorming process b. were primarily used by dot-coms and are no longer popular c. speed innovation through early identification of new ideas or problems that would typically not have been generated until much later d. do not typically use milestones because of group cohesiveness e. replace organizational structures on a typical organizational chart ANS: C PTS: 1 DIF: Difficult REF: 7.2b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy 43. The ____ approach to managing innovation assumes that innovation is a predictable process made up of a series of steps and that compressing the time it takes to complete those steps can speed up innovation. a. compression b. milestones c. dialectical d. generational e. prototypical ANS: A PTS: 1 DIF: Easy REF: 7.2c TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy | Leadership Principles 44. ARI is a leading provider of sales and profit-building technology services for equipment dealers. When Unverferth Manufacturing, a supplier of agricultural equipment, wanted to change the way it supplied information it contacted ARI. ARI presented the manufacturer with a solution that allowed it to replace its paper catalogs with online catalogs. As a result, Unverferth was able to eliminate costly paper catalogs and gain the ability to provide up-to-the-minute information to its dealers. This incremental change that was aided by supplier involvement was an example of the ____ approach to innovation. a. generational b. experiential c. milestones d. compression e. supply-side ANS: D It is appropriate to use a compression approach to manage innovation in more certain environments during periods of incremental change. During such periods, the goals are lower costs and incremental improvements in the performance and function of the existing technological design. PTS: 1 DIF: Moderate REF: 7.2c TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 45. It is appropriate to use a(n) ____ approach to manage innovation in more certain environments during periods of incremental change, in which the goals are lower costs and incremental improvements in the performance and function of the existing technological design. a. experiential b. compression c. prototypical d. milestones e. reinforcement ANS: B PTS: 1 DIF: Easy REF: 7.2c TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 46. The goals of the compression approach to innovation are ____. a. speed, lower costs, and incremental change of dominant design b. the development of milestones and the comparison of actual milestones with forecasts c. the establishment of a dominant design and speed d. absolute-time management and the creation of a dominant design e. a matrix innovation process and a sustainable competitive advantage ANS: A Whereas the experiential approach is used to manage innovation toward new designs, the compression approach is aimed at lower costs and incremental improvement of the dominant design. PTS: 1 DIF: Moderate REF: 7.2c TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 47. The first step in the compression approach to innovation is ____. a. overlapping of the individual steps b. planning c. supplier involvement d. granting autonomy e. creating multifunctional teams ANS: B PTS: 1 DIF: Difficult REF: 7.2c TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 48. 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. a. a milestone b. intuitive change c. generational change d. coercive change e. discontinuous innovation ANS: C PTS: 1 DIF: Easy REF: 7.2c TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 49. Unverferth Manufacturing makes agricultural equipment. It used finite element analysis (FEA) software to speed up the design cycle for its 12-row sub-soiler. Which aspect of the compression approach to innovation would the use of this software apply? a. planning b. supplier involvement c. shortening the time of individual steps d. multifunctional teams e. functional isolation ANS: C Software is often used to shorten the time of individual steps. PTS: 1 DIF: Easy REF: 7.2c TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Operations Management | Information Technologies 50. Backward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has greater capacity. Therefore, many software manufacturers engage in ____. a. coercive change b. dominant design manipulation c. generational change d. intuitive change e. incremental modification ANS: C PTS: 1 DIF: Moderate REF: 7.2c TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Operations Management | Information Technologies 51. ____ forces support the status quo. a. Dialectical b. Generational c. Resistance d. Experiential e. Autonomous ANS: C PTS: 1 DIF: Easy REF: 7.4 TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 52. According to social psychologist Kurt Lewin, ____ lead to differences in the form, quality, or condition of an organization over time, while ____ support the status quo, or the existing state of conditions in an organization. a. compressed changes; generational changes b. generational forces; resistance forces c. generational changes; inertial changes d. change forces; inertial forces e. change forces; resistance forces ANS: E PTS: 1 DIF: Moderate REF: 7.4a TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 53. Which of the following is one of the sources of resistance to change? a. self-interest b. multifunctional teams c. a dynamic organizational culture d. discontinuous innovation e. sustainable status quo ANS: A PTS: 1 DIF: Moderate REF: 7.4a TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 54. Which of the following statements about resistance to change is true? a. Resistance to change will not occur when those affected by the change participate in its planning and implementation. b. Resistance to change will not occur when employees are educated about the need for change. c. Resistance to change will not occur when change efforts receive significant managerial support. d. Resistance to change disappears when the organization operates in conditions of certainty. e. Resistance to change will always occur; it is inevitable. ANS: E PTS: 1 DIF: Easy REF: 7.4a TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 55. Which of the following is one of the three steps in the basic process of managing organizational change outlined by Kurt Lewin? a. unfreezing b. organizational dialogue c. change definition d. incremental change e. change mentoring ANS: A According to Kurt Lewin, managing organizational change is a basic process of unfreezing, change intervention, and refreezing. PTS: 1 DIF: Moderate REF: 7.4a TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 56. The three steps in the basic process of managing organizational change outlined by Kurt Lewin are ____. a. unfreezing, change intervention, and refreezing b. organizational change, departmental change, and individual change c. change definition, change motivation, and change d. synthesizing, motivating, and rewarding e. change definition, change mobilization, and change acceptance ANS: A PTS: 1 DIF: Moderate REF: 7.4a TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 57. Which of the following is NOT one of the basic methods for managing resistance to change? a. education and communication b. participation c. change simulation d. negotiation e. coercion ANS: C PTS: 1 DIF: Moderate REF: 7.4a TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Individual Dynamics 58. When resistance to change is based on insufficient, incorrect, or misleading information, managers should use ____ as an approach to manage resistance. a. education and communication b. participation c. negotiation d. coercion e. change manipulation ANS: A PTS: 1 DIF: Easy REF: 7.4a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 59. Downsizing has thinned the ranks of hospital personnel. Hospital employees were adamantly resisting any more change. What method could hospital administrators use to manage this resistance? a. educate employees about the need for change b. let the employees participate in implementing the change process c. provide significant managerial support d. let employees discuss and agree on who will do what after change occurs e. any or all of these ANS: E PTS: 1 DIF: Moderate REF: 7.4a TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 60. Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions? a. mentoring b. arbitration c. negotiation d. coercion e. reinforcement modification ANS: D Coercion is the use of formal power and authority to force others to change. PTS: 1 DIF: Easy REF: 7.4a TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 61. When a merger of South Carolina-based Springs Industries with the Brazilian textile producer Coteminas was announced, the CEO of Springs was quoted as saying, "It is unclear what effect this move will have on our employees though no immediate layoffs are planned. There may be some in the future." In this stage of the organizational change, ____ the CEO should use empathy and communicate specific details of the merger. a. change intervention b. the change prototype c. unfreezing d. refreezing e. change mobilization ANS: C The unfreezing stage involves getting the people affected by the change to believe that change is needed. Employees at Springs are likely to resist the change that will come with the merger because they do not know what to expect and have, moreover, been prompted to wonder whether their jobs may be at stake. PTS: 1 DIF: Difficult REF: 7.4a TOP: AACSB Analytic| AACSB Communication KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 62. 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. During the organizational change, having this vision was especially important during the ____ stage. a. change intervention b. the change prototype c. unfreezing d. refreezing e. change mobilization ANS: A The absence of a vision is one of the common mistakes made during the change stage. PTS: 1 DIF: Difficult REF: 7.4a TOP: AACSB Analytic| AACSB Communication KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 63. According to John Kotter, which of the following actions will adversely influence refreezing efforts? a. the absence of a vision b. not removing obstacles to the company's new vision c. not creating a powerful enough guiding coalition d. declaring victory too soon e. all of these ANS: D PTS: 1 DIF: Difficult REF: 7.4b TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 64. Which of the following statements describes an advantage of the results-driven change approach to managing change? a. It supplants the sole emphasis on activity with a focus on quickly measuring and improving results. b. Managers actually test to see if changes make a difference. c. Quick, visible improvements motivate employees to continue to make additional changes. d. Managers introduce changes in policies, procedures, rules, and regulations only when they will improve measured performance. e. All of these were cited as advantages of the results-driven change approach. ANS: E PTS: 1 DIF: Moderate REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 65. An Internet strategy enabled Nestlé USA to change its way of doing business and allowed the company to change its staid, risk-averse culture; from buying raw materials to processing purchase orders to marketing the roughly 2,000 products that make up its nearly 200 brands. Employees worked to "Make e-business the way we do business." Nestlé USA used ____ change to reinvent the company. a. activity-oriented b. results-driven c. generational d. vision-driven e. resources-driven ANS: B Results-driven change focuses primarily on changing company procedures, management philosophy, or employee behavior. PTS: 1 DIF: Moderate REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | HRM | Strategy | Leadership Principles | Group Dynamics | Individual Dynamics 66. The General Electric workout is a special kind of ____. a. activity-oriented change b. results-driven change c. generational change d. vision-driven change e. resources-driven change ANS: B PTS: 1 DIF: Difficult REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 67. A(n) ____ is the individual who is formally in charge of guiding a change effort. a. change ombudsman b. staff moderator c. change mentor d. change agent e. intrapreneur ANS: D PTS: 1 DIF: Easy REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 68. Organizational development ____. a. takes a long-range approach to change b. creates change by educating workers and managers to change ideas, beliefs, and behaviors so that problems can be solved in new ways c. assumes that top management support is necessary for change d. emphasizes employee participation in all stages of the change e. is accurately described by all of these ANS: E PTS: 1 DIF: Moderate REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 69. Organizational development ____. a. requires a steering committee b. takes a short-term approach to change c. is a philosophy and collection of planned change interventions d. assumes that top management support is not necessary for change e. is accurately described by all of these ANS: C PTS: 1 DIF: Moderate REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 70. 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) ____. a. change ombudsman b. staff moderator c. change mentor d. change agent e. intrapreneur ANS: D A change agent is the individual who is formally in charge of guiding a change effort. PTS: 1 DIF: Moderate REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 71. There are eight general steps for organizational development intervention. The first step is ____. a. pioneering b. inception c. introduction d. entry e. startup ANS: D The steps are listed in Exhibit 7.5. During the entry step, the problem is discovered. PTS: 1 DIF: Moderate REF: 7.4c TOP: AACSB Reflective Thinking KEY: Creation of Value | Group Dynamics 72. Which of the following approaches is aimed at changing large systems, small groups, or individuals? a. General Electric workout b. the functional approach to change c. organizational development d. results-driven change e. Lewin's change synthesis ANS: C PTS: 1 DIF: Moderate REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 73. An Internet strategy enabled Nestlé USA to change its way of doing business and allowed the company to change its staid, risk-averse culture; from buying raw materials to processing purchase orders to marketing the roughly 2,000 products that make up its nearly 200 brands. Employees worked to "Make e-business the way we do business." In terms of organizational development, the process described here is primarily a(n) ____ intervention. a. unit b. large system c. unit-focused d. results-focused e. cultural ANS: B The large system intervention was used to change the character and the performance of the organization. PTS: 1 DIF: Moderate REF: 7.4c TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy | Leadership Principles | Group Dynamics | Individual Dynamics Levi Strauss Emily Morgan is a 30-year veteran at Levi Strauss & Company. She joined the company as a secretary in the advertising department and slowly began rising through the ranks. The more she saw how the company worked, the more dissatisfied she became. According to Morgan, the company was “dysfunctional” and “internally competitive, one division against another.” This is why Morgan became a part of the change initiative when talk of reinventing the company spread through headquarters. She led the team that designed the Develop Sources process, a system for working with suppliers. In 1995, Morgan became vice president for fulfillment, Asia. Her job was to convince Levi’s Asia suppliers to adopt more efficient production and distribution techniques. The Asian suppliers were afraid of change. Once Morgan and her staff showed suppliers how use of the Develop Sources program would benefit them, Morgan’s job to transform Levi’s Asian operations became easier. 74. Refer to Levi Strauss. In order to maintain a competitive advantage in the clothing industry, Levi had to create more efficient new methods of dealing with its suppliers. Its ____ began with discontinuing inefficient methods of suppliers and continued with substituting electronic networks for outdated systems. a. dominant design b. competitive advantage c. innovation stream d. comparative differential e. inventive flow ANS: C PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic KEY: Creation of Value | HRM | Operations Management | Information Technologies | Environmental Influence 75. Refer to Levi Strauss. Why did Levi decide to change the way it was conducting business? a. to protect its competitive advantage b. to downsize its work force c. to make outsourcing more economically feasible d. to create economies of scale e. to direct group norm development ANS: A PTS: 1 DIF: Moderate REF: 7.1b TOP: AACSB Analytic KEY: Creation of Value | HRM | Strategy | Environmental Influence 76. Refer to Levi Strauss. Prior to the reinvention of the company, which began in 1982, the company most likely did not have a(n) ____. a. history of innovation discontinuity b. design iteration c. competitive advantage d. creative work environment e. organizational culture ANS: D Creative work environments, in which workers perceive that new ideas are welcomed, valued and encouraged, are basic to making the sorts of continuous innovations that sustain competitive advantage. PTS: 1 DIF: Moderate REF: 7.2a TOP: AACSB Analytic KEY: Creation of Value | HRM | Strategy 77. Refer to Levi Strauss. Initially, Morgan found ____ strong in Asia. a. change forces b. internal strengths c. frozen change d. acceptance forces e. resistance forces ANS: E PTS: 1 DIF: Easy REF: 7.4 TOP: AACSB Analytic KEY: Creation of Value | Strategy | Environmental Influence 78. Refer to Levi Strauss. Unfreezing, change intervention, and refreezing were the processes used by Morgan and her team to ____. a. motivate Asian suppliers b. manage the Asian suppliers’ resistance to change c. create a more dynamic work environment d. coordinate a creative work environment e. gather competitive intelligence about Levi’s suppliers ANS: B PTS: 1 DIF: Easy REF: 7.4a TOP: AACSB Analytic KEY: Creation of Value | Strategy | Environmental Influence 79. Refer to Levi Strauss. Which of the specific techniques for dealing with resistance to change did Morgan use to convince the Asian suppliers that it was in their best interest to adopt the Develop Sources process? a. coercion b. top management support c. education and communication d. direction e. tactical manipulation ANS: C PTS: 1 DIF: Easy REF: 7.4a TOP: AACSB Analytic KEY: Creation of Value | Strategy | Environmental Influence | Individual Dynamics 80. Refer to Levi Strauss. Emily Morgan is an example of a(n) ____. a. ombudsman b. mentor c. organizational liaison d. change agent e. gatekeeper ANS: D PTS: 1 DIF: Easy REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | Strategy | Environmental Influence | Individual Dynamics W. L. Gore Bill Gore started the W. L. Gore Company in his basement when he left DuPont to develop innovative uses for Teflon (polytetrafluoroethylene or PTFE), the then-new non-stick plastic. Today, W. L. Gore is best known for Gore-Tex, a waterproof, windproof, and temperature-resistant fabric that breathes and does not trap perspiration and body heat. Marketed as “Guaranteed to Keep You Dry,” Gore-Tex is used not only for coats, gloves, and camping and hiking gear but also for protective outerwear worn by firefighters and military, emergency, and medical personnel. But in recent years Gore-Tex sales have steadily declined. One reason is that a number of alternative fabrics, like Entrant GII and eVENT, work nearly as well but cost only $6 to $8 per yard compared to $15 to $30 per yard for Gore-Tex. So the challenge for W. L. Gore is to reduce its dependence on Gore-Tex, which accounts for 21% of its $1.6 billion in revenues, by coming up with ways to consistently develop innovative products in other areas. In general, W. L. Gore goes for dramatic rather than incremental improvements. On its web site, it declares, “At Gore, we take our reputation for product leadership seriously, continually delivering new products and better solutions to the world. Gore's products are designed to be the highest quality in their class and revolutionary in their effect.” Gore has created a number of innovative products, including Glide dental floss, the first floss that didn’t shred, tear, and get caught in your teeth. Gore used its expertise in stretched plastics to essentially create a thin, Teflon-like tape used as dental floss. Glide was soon the number two floss in the market and today is the number one floss recommended by dental professionals. Gore then sold Glide to Procter & Gamble. But since Gore still makes Glide for P&G, Gore continues to make substantial profits that it then reinvests in other innovative products such as CleanStream filters, which filter dirt particles out of the air before it comes out of your vacuum cleaner; Radome, which is used to cover microwave transmission sites (think of the large “golf ball” structures you sometimes see around airports); medical stent-grafts, stents that are attached to an aorta to treat aortic aneurysms; and many more. Gore has also been innovative in the processes it uses to develop new products. The company frequently asks potential customers for help when designing new products (i.e., design iterations and testing). When Gore engineer Dave Myers was developing Elixir, Gore’s best-selling acoustic guitar strings, which are coated with a thin layer of plastic that avoids the accumulation of dust, microscopic layers of skin (from musicians’ fingers), and dirt and oil, all of which affect musical quality and sound, he talked to Chuck Hebestreit, another Gore engineer who played the guitar. They, in turn, asked experienced guitar players to give them feedback on the product. Steve Young, who now heads Elixir products for Gore, said, “We gave it to guitar players to try out, and they were amazed that it [meaning the guitar sound] didn't go dead [unlike regular guitar strings].” Why? Because, thanks to their resistance to dust, skin, dirt, and oil, Elixir guitar strings last five times as long as normal guitar strings. Elixir guitar strings now have a 35% share of the market. Gore also provides flexible options for innovation by making “time for dabbling.” What this means is that everyone in the company is encouraged to spend 10% of their time on new ideas or products. If those ideas have potential, a Gore “sponsor,” typically a more senior person, will guide and coach that employee on how to further advance their ideas or products. When ideas or innovations are to the point where further development requires a significant investment by the company, they are reviewed by a multifunctional team that goes through an exercise called “Real, Win, Worth.” Gore’s former CEO Chuck Carroll explained how this works: “Is the opportunity real? Is there really somebody out there that will buy this? Can we win? What do the economics look like? Can we make money doing this? Is it unique and valuable? Can we have a sustained advantage [such as a patent]?” 81. Refer to Gore. When introduced, Gore-Tex fabric gave its manufacturer W. L. Gore a _____. a. discontinuous change b. competitive advantage c. product-driven vision d. generational product e. results-driven change ANS: B Gore-Tex was the basis of differentiation and competitive advantage. PTS: 1 DIF: Easy REF: 7.1b TOP: AACSB Analytic KEY: Creation of Value | Strategy | Environmental Influence 82. Refer to Gore. What kind of innovation is encouraged at W. L. Gore? a. transitional b. compression c. dominant design d. incremental e. self-initiated ANS: C Gore is aiming for revolutionary new and popular products (dominant designs). PTS: 1 DIF: Easy REF: 7.1b TOP: AACSB Analytic KEY: Creation of Value | HRM | Strategy 83. Refer to Gore. Gore's approach to innovation is to use frequent design iterations, frequent testing, regular milestones, multifunctional teams, and powerful leadership. This means it uses the ____ approach to innovation. a. experiential b. transitional c. vision-driven d. generational e. compression ANS: A This is the definition of experiential approach. PTS: 1 DIF: Easy REF: 7.2b TOP: AACSB Analytic KEY: Creation of Value | HRM | Strategy | Leadership Principles | Group Dynamics | Individual Dynamics 84. Refer to Gore. Elixir, Gore’s acoustic guitar string, is coated with a thin layer of plastic that avoids the accumulation of dust, microscopic layers of skin (from musician’s fingers), and dirt and oil, all of which affect musical quality and sound. To develop Elixir, Gore employees used ____. a. transitional innovation b. compression design c. dominant design d. incremental change e. self-initiated design ANS: D Gore improved the performance of an existing product (guitar strings), and this is characteristic of incremental change. PTS: 1 DIF: Easy REF: 7.2c TOP: AACSB Analytic KEY: Creation of Value | HRM | Strategy 85. Refer to Gore. The list of Gore’s products clearly indicates that the company’s core competency is innovation. As a company, Gore is capable of developing ____, that is, patterns of innovation over time that can create sustainable competitive advantage, in a number of different products and industries. a. technology cycles b. recalcitrant designs c. creative transitions d. innovation streams e. transitional designs ANS: D Innovation streams are defined as patterns of innovation over time that can create sustainable competitive advantage. PTS: 1 DIF: Easy REF: 7.1b TOP: AACSB Analytic KEY: Creation of Value | HRM | Strategy | Leadership Principles | Group Dynamics | Individual Dynamics SHORT ANSWER 1. Briefly describe the typical pattern of technology cycles that occurs during technological innovation. ANS: Technology cycles typically follow an S-curve pattern of innovation. Early in the cycle, technological progress is slow and improvements in technological performance are small. However, as a technology matures, performance improves quickly. Finally, small improvements occur as the limits of a technology are reached. At this point, significant improvements in performance must come from new technologies. PTS: 1 DIF: Moderate REF: 7.1a TOP: AACSB Analytic| AACSB Technology KEY: Environmental Influence | Information Technologies | Strategy 2. What are innovation streams? Describe a typical innovation stream. ANS: Innovation streams are patterns of innovation over time that can create sustainable competitive advantage. A typical innovation stream consists of a series of technology cycles. A technology cycle begins with a new technology and ends when that technology is replaced by a newer, substantially better technology. Innovation streams typically consist of (1) a technological discontinuity; (2) discontinuous change, characterized by technological substitution and design competition; (3) the emergence of a dominant design; followed by (4) a focus on incremental change until the next technological discontinuity occurs. PTS: 1 DIF: Easy REF: 7.1b TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy | Environmental Influence 3. How are technology cycles and innovation streams related? ANS: A technology cycle begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology. Technology cycles typically follow an S-curve pattern of innovation. Early in the cycle, technological progress is slow and improvements in technological performance are small. However, as a technology matures, performance improves quickly. Finally, small improvements occur as the limits of a technology are reached. At this point, significant improvements in performance must come from new technologies. Innovation streams are defined as patterns of innovation over time that can create sustainable competitive advantage. As illustrated in Exhibit 7.2, a typical innovation stream consists of a series of technology cycles over time. Each cycle involves variation selection based upon four stages of activity (technological discontinuity, discontinuous change, dominant design, and era of incremental change), followed by technological substitution involving the advanced technology, and then repeating this cyclical process until another technological advance occurs. PTS: 1 DIF: Moderate REF: 7.1 TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 4. What are creative work environments and what does a manager need to do to develop and manage creative work environments? ANS: Creative work environments are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged. Creative work environments have five components that encourage creativity: (1) challenging work, (2) organizational encouragement, (3) supervisory encouragement, (4) work group encouragement, and (5) freedom. A sixth component, organizational impediments, must be managed so as not to discourage creativity. Organizational impediments include such things as internal conflict and power struggles, rigid management structures, and a conservative bias toward the status quo. These can all discourage creativity, since they create the perception that others in the organization will decide which ideas are acceptable and deserve support. PTS: 1 DIF: Easy REF: 7.2a TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 5. Given the nature and demands of technology cycles and innovation streams, identify the two types of change that companies need to be able to manage. What are the approaches most appropriate for managing each type of change? ANS: Given the nature and demands of technology cycles and innovation streams, managers must be equally good at managing innovation in two very different circumstances. Unfortunately, what works well when managing innovation after technological discontinuities doesn't work well when managing innovation during periods of incremental change (and vice versa). First, during discontinuous change, companies must find a way to anticipate and survive the technological discontinuities that can suddenly transform industry leaders into losers and industry unknowns into industry powerhouses. The most appropriate approach under these circumstances is the experiential approach to innovation. Second, after a new dominant design emerges following discontinuous change, companies must manage the very different process of incremental improvement and innovation in order to keep up with industry leaders. In this case, a compression approach to innovation is most appropriate. PTS: 1 DIF: Moderate REF: 7.2 TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy | Leadership Principles | Group Dynamics | Individual Dynamics 6. Differentiate between the experiential and compression approaches to innovation. What is the single component that both approaches have in common? ANS: The experiential and compression approaches are complementary approaches to managing innovation; each one is appropriate in a different phase of the technology cycle. The experiential approach is used to manage innovation in highly uncertain environments during periods of discontinuous change, while the compression approach is used to manage innovation in more certain environments during periods of incremental change. There are five parts to the experiential approach to innovation: (1) design iterations, (2) testing, (3) milestones, (4) multifunctional teams, and (5) powerful leaders. There are also five parts to the compression approach to innovation: (1) planning, (2) supplier involvement, (3) shortening the time of individual steps, (4) overlapping steps, and (5) multifunctional teams. The single component that both approaches have in common is multifunctional teams. PTS: 1 DIF: Difficult REF: 7.2 TOP: AACSB Analytic KEY: Creation of Value | HRM | Strategy | Leadership Principles | Group Dynamics | Individual Dynamics 7. Identify and briefly describe the three steps involved in the process of managing organizational change as defined by Kurt Lewin. ANS: According to Kurt Lewin, managing organizational change is a basic process of unfreezing, change intervention, and refreezing. Unfreezing is getting the people affected by change to believe that change is needed. During the change intervention itself, workers and managers change their behavior and work practices. Refreezing is supporting and reinforcing the new changes so they stick. PTS: 1 DIF: Easy REF: 7.4 TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 8. Identify the methods that can be used to manage resistance to change. Which one should be used only as a last resort? ANS: The following methods can be used to manage resistance to change: education and communication, participation, negotiation, top management support, and coercion. Managers should educate employees about the need for change and communicate change-related information to them. Employees who participate in planning and implementing the change process have a better understanding of the need for change and are more likely to support it. Employees are less likely to resist change if they are allowed to negotiate (i.e., discuss and agree on) who will do what after change occurs. Resistance to change also decreases when change efforts receive significant managerial support, including providing the training, resources, and autonomy needed to make change happen. Finally, use of formal power and authority to force others to change is called coercion. Because of the intense negative reactions it can create (i.e., fear, stress, resentment, sabotage of company products), coercion should be used only when a crisis exists or when all other attempts to reduce resistance to change have failed. PTS: 1 DIF: Moderate REF: 7.4a TOP: AACSB Analytic| AACSB Ethics KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Ethical Responsibilities 9. Provide one example of a common error made by managers when they lead change at each of the three steps of the change process. ANS: The basic change process occurs in three stages (unfreezing, change, refreezing). John Kotter has listed common errors of managers in leading the change process at each of these three stages. These errors are as follows, by stage. For the Unfreezing stage: not establishing a great enough sense of urgency; not creating a powerful enough guiding coalition. For the Change stage: lacking a vision; undercommunicating the vision by a factor of ten; not removing obstacles to the new vision; not systematically planning for and creating short-term wins. For the Refreezing stage: declaring victory too soon; not anchoring changes in the corporation's culture. PTS: 1 DIF: Difficult REF: 7.4b TOP: AACSB Analytic| AACSB Communication KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics ESSAY 1. Explain how the concept of innovation streams relates to the concept of sustainable competitive advantage. Give an example of how this occurs in the business world. ANS: Organizations can create competitive advantage for themselves if they have a distinctive competence that allows them to make, do, or perform something better than their competitors. A competitive advantage becomes sustainable if other companies cannot duplicate the benefits obtained from that distinctive competence. Technological innovation is important for sustainable competitive advantage because it enables other companies not only to duplicate the benefits obtained from a company's distinctive advantage but also to quickly turn a company's competitive advantage into a competitive disadvantage. While technological innovation can threaten a company’s sustainable competitive advantage, the ability to create innovation streams can protect a company’s sustainable competitive advantage because a stream of innovative ideas and products enables the company to stay one step ahead of the industry game. Innovation streams begin with technological discontinuities that create significant breakthroughs in performance or function. Technological discontinuities are followed by discontinuous change, in which customers purchase new technologies (technological substitution) and companies compete to establish the new dominant design (design competition). Dominant designs emerge because of critical mass, because they solve a practical problem, or because of the negotiations of independent standards bodies. Because technological innovation is both competence-enhancing and competence-destroying, companies that bet on the wrong design often struggle, while companies that bet on the eventual dominant design usually prosper. Emergence of a dominant design leads to a focus on incremental change, lowering costs, and small, but steady improvements in the dominant design. This focus continues until the next technological discontinuity occurs. Companies that keep an innovation stream going are often on the leading edge of this process and, therefore, able to sustain a competitive advantage. Students may provide a variety of examples to illustrate the concepts of innovation streams resulting in sustainable competitive advantage. The text provides an example of Intel and the innovation stream associated with its microchips. Student examples should be evaluated based on the degree to which the examples actually illustrate the concepts and components of innovation streams and the degree to which students integrate the concepts into their explanations. In general, examples that come from outside the text demonstrate a higher level of learning than those simply repeating points made in the book. PTS: 1 DIF: Moderate REF: 7.1 TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Strategy | Environmental Influence 2. The format war between HD-DVD and Blu Ray was preceded by a nearly identical competition between DVD and DIVX. While DVD technology was used by a variety of manufacturers (including Sony and RCA), DIVX was a proprietary format developed by Circuit City. Both formats could play DVD movies, which cost about $30 each. However, DIVX movies (which could be played only on a DIVX player and not on a DVD player) could be purchased for $5 and viewed for 24 hours, with the ability to renew (including perpetual viewing) for a reasonable charge and a telephone call. Circuit City believed that consumers beginning to buy video disk players and disks would prefer its format, since the disks were less expensive and offered the convenience similar to a rental with the option of a purchase (conveniently by telephone from home) at a later date. But the DIVX format never took off, and in mid-1999, Circuit City announced that it was being discontinued. This left DVD as the dominant format for videodisks. By late 2008 Circuit City stores were in bankruptcy and closed. Relate this example to the model of the innovation stream and corporate attempts to gain competitive advantage through technological innovation. Explain how this competition in formats between DVD and DIVX fits the model of the innovation stream. ANS: Organizations can create competitive advantage for themselves if they have a distinctive competence that allows them to make, do, or perform something better than their competitors. A competitive advantage becomes sustainable if other companies cannot duplicate the benefits obtained from that distinctive competence. Technological innovation, however, makes it possible not only to duplicate the benefits obtained from a company's distinctive advantage, but also to quickly turn a company's competitive advantage into a competitive disadvantage. This is exactly what Circuit City was trying to do. It hoped that its development of and considerable investment in the proprietary DIVX technology would enable it to become the dominant videodisk format. Such a development would have destroyed any competitive advantage that Sony, RCA, and other manufacturers of DVD players might have, since they would have to either license the DIVX format from Circuit City or settle for a lesser market share. This situation can be analyzed in more detail using the model of innovation streams. In general, the best way to protect a competitive advantage is to create a stream of innovative ideas and products. Innovation streams (patterns of innovation over time that can create sustainable competitive advantage) begin with technological discontinuities that create significant breakthroughs in performance or function. This was occurring as digital videodisk technology was being introduced as a potential replacement for videotape. Technological discontinuities are followed by discontinuous change, in which customers purchase new technologies (technological substitution–or the replacement of VHS videotape recorders with videodisk players) and companies compete to establish the new dominant design (design competition–DVD or DIVX). Dominant designs emerge because of critical mass, because they solve a practical problem, or because of the negotiations of independent standards bodies. In this case, DVD was accepted by a variety of manufacturers and developed according to independent standards. Circuit City took a big risk in developing DIVX, which was a different, incompatible and proprietary format that it hoped would prove more popular than DVD. In the end, it proved less popular. DVD began to develop a critical mass of players in the marketplace, and Circuit City decided to admit its mistake and cut its losses immediately. Because technological innovation is both competence-enhancing and competence-destroying, companies that bet on the wrong design often struggle, while companies that bet on the eventual dominant design usually prosper. In this case, Circuit City bet on the wrong design and lost, while Sony, RCA, and others bet on the winning design. The elimination of DIVX from the videodisk market heralds the emergence of a dominant design in the standard DVD format. This can be expected to lead to a focus on incremental change, lowering costs, and small but steady improvements in that dominant design. This focus will continue until the next technological discontinuity occurs. PTS: 1 DIF: Difficult REF: 7.1 TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Strategy | Environmental Influence 3. Identify and briefly describe the three things that companies need to be good at in order to successfully manage innovation streams. Explain why managing these factors is important. Specify which one of the three might tend to be more influenced by organizational culture and less influenced by the manager's own personal ability. ANS: Given the nature and demands of technology cycles and innovation streams, managers must be equally good at managing innovation in two very different circumstances. First, during discontinuous change companies must find a way to anticipate and survive the technological discontinuities that can suddenly transform industry leaders into losers and industry unknowns into industry powerhouses. Companies that can't manage innovation following technological discontinuities risk quick organizational decline and dissolution. Second, after a new dominant design emerges following discontinuous change, companies must manage the very different process of incremental improvement and innovation. Companies that can't manage incremental innovation slowly deteriorate as they fall farther behind industry leaders. Finally, in order to have innovation streams to manage, companies must be able to promote the creative ideas that lead to organizational innovation in the first place. Unfortunately, what works well when managing innovation after technological discontinuities doesn't work well when managing innovation during periods of incremental change (and vice versa). Consequently, companies need to be good at three things to successfully manage innovation streams: (1) managing the sources of innovation, (2) managing innovation during discontinuous change, and (3) managing innovation during incremental change. In terms of managing the sources of innovation, companies can jump-start innovation by building creative work environments, in which workers perceive that creative thoughts and ideas are welcomed and valued. Creative work environments have five components that encourage creativity: (1) challenging work, (2) organizational encouragement, (3) supervisory encouragement, (4) work group encouragement, and (5) freedom. A sixth component, organizational impediments, must be managed so as not to discourage creativity. The experiential approach to innovation is most appropriate when managing discontinuous change, in which a technological discontinuity created a significant breakthrough in performance or function. This approach assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding. There are five parts to the experiential approach to innovation: (1) design iterations, (2) testing, (3) milestones, (4) multifunctional teams, and (5) powerful leaders. The compression approach to innovation can be used during periods of incremental change, in which the focus is on systematically improving the performance and lowering the cost of the dominant technological design. The compression approach assumes that innovation is a predictable process, that incremental innovation can be planned using a series of steps, and that compressing the time it takes to complete those steps can speed up innovation. There are five parts to the compression approach to innovation: (1) planning, (2) supplier involvement, (3) shortening the time of individual steps, (4) overlapping steps, and (5) multifunctional teams. Of these three approaches, one might argue that building creative work environments would be the one more affected by organizational culture than the individual manager's own ability. The emphasis on attitudes, perception, and interpersonal behavior in this approach would be more susceptible to overriding influences from organizational culture than the more procedural emphases of the other two approaches, which would be more easily influenced by managerial skill. However, an argument could be made for the experiential learning approach as being more affected by organizational culture, based upon the role of intuition, flexibility, multifunctional teams and powerful leaders. Similarly, but perhaps to a lesser extent, an argument could be made for the compression approach as being more affected by organizational culture, based upon the use of multifunctional teams. However, this argument seems least appropriate in the context of all three approaches, given the more obvious behavioral components of the other two. The key to quality in answers is the extent to which the behavioral dimensions of values, beliefs, and attitudes are tied in to the argument in favor of majority influence for the given approach. PTS: 1 DIF: Difficult REF: 7.1b-7.2 TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics 4. Explain the difference between activity-oriented and results-driven change. List the advantages of the results-driven approach to change. Characterize each of the approaches to organizational change presented in the text in terms of their apparent degree of emphasis on activities or results. ANS: One of the reasons that organizational change efforts fail is that they are activity-oriented, meaning that they primarily focus on changing company procedures, management philosophy, or employee behavior. Typically, there is much buildup and preparation as consultants are brought in, presentations are made, books are read, and employees and managers are trained. There's a tremendous emphasis on doing things the new way. But for all the focus on activities, on doing, there's almost no focus on results, on seeing if all this activity has actually made a difference. By contrast, results-driven change supplants the sole emphasis on activity with a laser-like focus on quickly measuring and improving results. Rather than emphasizing changes in philosophy, procedures, and employee behavior, this approach emphasizes identifying and working with easily measurable dimensions associated with demonstrably successful change. As one manager put it, change is a project, not a process. This direct emphasis on measuring and improving results is the first advantage of the results-driven change approach. The second advantage is that managers introduce changes in procedures, philosophy, or behavior only if they are likely to improve measured performance. In other words, managers actually test to see if changes make a difference. A third advantage of results-driven change is that quick, visible improvements motivate employees to continue making additional changes to improve measured performance. Consequently, unlike most change efforts, the quick successes associated with results-driven change are particularly effective at reducing resistance to change. The text identifies results-driven change, the General Electric workout, and organizational development as different change tools and techniques that can be used to create and manage organizational change. Among these approaches, the General Electric workout is a special kind of results-driven change. It is a three-day meeting that brings together managers and employees from different levels and parts of an organization to quickly generate and act on solutions to specific business problems. At the other end of the spectrum, as an activity-oriented approach, would be organizational development. Organizational development is a philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance, which clearly places greatest emphasis upon process, philosophy, procedure, and behavior. PTS: 1 DIF: Moderate REF: 7.4c TOP: AACSB Analytic KEY: Creation of Value | HRM | Group Dynamics | Leadership Principles | Individual Dynamics Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 8. The second 15 questions cover the material in Chapter 9. Be sure you are in the correct Chapter when you take the quiz. • Question 1 3 out of 3 points A country or region that has an attractive business climate for companies that want to go global has found an ____. Answer easy access to growing markets easy access to growing markets • Question 2 3 out of 3 points The purpose of pre-departure language and cross-cultural training is to ____. Answer reduce the uncertainty for those becoming expatriates reduce the uncertainty for those becoming expatriates • Question 3 3 out of 3 points What are the two types of political risk that affect companies conducting global business? Answer political uncertainty and policy uncertainty political uncertainty and policy uncertainty • Question 4 3 out of 3 points A country or region that has an attractive business climate for companies that want to go global has ____. Answer an effective but cost-efficient place to build an office or manufacturing site an effective but cost-efficient place to build an office or manufacturing site • Question 5 3 out of 3 points ____ are both examples of cooperative contracts. Answer Franchising and licensing Franchising and licensing • Question 6 3 out of 3 points ____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of people from a particular country. Answer National culture National culture • Question 7 3 out of 3 points A(n) ____ is a direct tax on imported goods designed to make it more expensive to buy those goods, instituted in hopes of reducing the volume of those imported goods in a given country. Answer tariff tariff • Question 8 3 out of 3 points Several Arab countries boycott Coca-Cola products because the soft-drink company maintains product distributors in Israel. This boycott is an example of ____. Answer a trade barrier a trade barrier • Question 9 3 out of 3 points As Malta got ready for its admittance into the European Union (EU), all taxes on the importation of goods manufactured in Malta were eliminated. Malta was preparing to become part of a(n) ____. Answer regional trading zone regional trading zone • Question 10 3 out of 3 points A multinational company that acts with ____ has offices, manufacturing plants, and distribution facilities in different countries all which run based on the same rules, guidelines, policies, and procedures. Answer global consistency global consistency • Question 11 3 out of 3 points Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of its lipstick annually in Japan. It has no physical presence within the country beyond the fact its products are sold there. Fran Wilson Creative Cosmetics uses ____ to reach the Japanese market. Answer exporting exporting • Question 12 3 out of 3 points In a multinational firm, managers at company headquarters typically prefer an emphasis on ____ because it simplifies decisions. Answer global consistency global consistency • Question 13 3 out of 3 points ____ occurs when a company sells domestically produced products to customers in foreign countries. Answer Exporting Exporting • Question 14 3 out of 3 points Protectionism is the use of trade barriers to protect local companies and their workers from ____. Answer foreign competition foreign competition • Question 15 3 out of 3 points The signing of the ____ created a regional trading zone in Europe. Answer Maastricht Treaty Maastricht Treaty • Question 16 3 out of 3 points ____ is characterized by simple, easy-to-learn steps; low variety; and high repetition. Answer Job specialization Job specialization • Question 17 3 out of 3 points ____ is a feeling of intrinsic motivation, in which workers perceive their work to have meaning and perceive themselves to be competent, having an impact, and capable of self-determination. Answer Empowerment Empowerment • Question 18 3 out of 3 points A manufacturer of acrylic and latex gloves sells to medical laboratories, to factories where employees handle chemicals, to companies that manufacture micro-tech equipment, and to cleaning services. Because it is organized to better satisfy the needs of each of its four target markets, the manufacturer uses ____ departmentalization. Answer customer customer • Question 19 3 out of 3 points Job specialization can result in ____. Answer employee boredom employee boredom • Question 20 3 out of 3 points Of all types of departmentalization, ____ departmentalization requires the highest level of management skill for successful implementation. Answer matrix matrix • Question 21 3 out of 3 points ____ is the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish their jobs. Answer Autonomy Autonomy • Question 22 3 out of 3 points ____ involves assigning direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible. Answer Delegation of authority Delegation of authority • Question 23 3 out of 3 points The Ryerson University Library is organized in a hierarchy with six unit heads reporting to a chief librarian. Within these units are fifteen librarians and forty-seven full-time library staff. One of the tools used in the organizational development of the library was to systematically move employees from one job to another to give them an opportunity to learn and use different skills. The Ryerson University Library used ____. Answer job rotation job rotation • Question 24 3 out of 3 points 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. Answer modular organizations modular organizations • Question 25 3 out of 3 points ____ is the collection of activities that transform inputs into outputs that customer’s value. Answer Organizational process Organizational process • Question 26 3 out of 3 points One of the key assumptions underlying the chain of command is ____, which means that workers should report to just one supervisor. Answer unity of command unity of command • Question 27 3 out of 3 points When managers delegate work, three transfers occur. The three transfers are responsibility, authority, and ____. Answer accountability accountability • Question 28 3 out of 3 points Hallmark has four departments. These departments are (1) Flowers and Gifts, (2) Cards and E-cards, (3) Hallmark Collectibles, and (4) Photo Albums and Scrapbooks. Hallmark uses ____ departmentalization. Answer product product • Question 29 3 out of 3 points In terms of the chain of command, ____ authority is the right to command immediate subordinates, while ____ authority is the right to advise but not command others who are not subordinates. Answer line; staff line; staff • Question 30 3 out of 3 points ____ departmentalization is notorious for confusion and conflict between project managers in different areas of the organization. Answer Matrix Matrix