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63 Cards in this Set

  • Front
  • Back
The organization chart depicts the types of products the company sells and to which customers they are sold.
False

The organization chart depicts the positions in the firm and the way they are arranged. The chart provides a picture of the reporting structure (who reports to whom) and the various activities that are carried out by different individuals.
Traditionally, authority resides in people and not in positions.
FALSE
Authority is the legitimate right to make decisions and to tell other people what to do. Traditionally, it resides in positions rather than in people.
Currently the public's trust in corporate governance is as strong as it has ever been.
FALSE
Corporate governance is a term describing the oversight of the firm by its executive staff and board of directors. In recent years, as a result of corporate scandals and extremely generous executive pay packages, the public's trust in corporate governance has eroded significantly.
Mallory wants to open a retail bakery and imagines that she will employ a staff of about 10 people including bakers and clerks. Mallory should attempt to create a tall rather than a flat organization.
FALSE
This type of organization would be considered flat since there are likely only two levels, with Mallory supervising all of her employees.
Delegation of work responsibilities is most effective when the manager does not delegate authority also.
FALSE
When delegating responsibilities, the manager also should delegate to the subordinate enough authority to get the job done.
A basic characteristic of decentralized organizations is the delegating of authority to people at lower hierarchical levels to make decisions and take action.
TRUE
In decentralized organizations, more decisions are made at lower levels. Ideally, decision making occurs at the level of the people who are most directly affected and have the most intimate knowledge about the problem.
One advantage of the product form of departmentalization is that task responsibilities are clear, leading to more independence and accountability among managers.
TRUE
In the product approach to departmentalization, task responsibilities are clear, and managers are more independent and accountable.
Standardization, plans, and mutual adjustment are methods of coordination.
TRUE
Coordination methods include standardization, plans, and mutual adjustment.
The reporting structure and division of labor in an organization are conveyed by the:
A. Organization chart.
B. Span of control.
C. Organization hierarchy.
D. Span of management.
E. Managerial assets.
A. Organization chart.
The organization chart depicts the positions in the firm and the way they are arranged. The chart provides a picture of the reporting structure (who reports to whom) and the various activities that are carried out by different individuals.
Authority is defined as
A. The legitimate right to tell other people what to do.
B. The procedures that link the various parts of the organization to achieve the organization's overall mission.
C. The assignment of new or additional responsibilities to a subordinate.
D. The expectation that staff will take corrective action when necessary.
E. A person being assigned a task that he or she is supposed to carry out.
A. The legitimate right to tell other people what to do.
The functioning of every organization depends on the use of authority: the legitimate right to make decisions and to tell other people what to do.
Corporations have boards of directors that are elected by
A. Employees.
B. Managers of all levels.
C. Stockholders.
D. Top managers.
E. All stakeholders.
C. Stockholders.
Stockholders elect a board of directors to oversee the organization on their behalf.
Top management includes which of the following?
A. Chief financial officer.
B. Frontline manager.
C. Operational supervisor.
D. Division supervisor.
E. Personnel supervisor.
A. Chief financial officer.
Top management teams typically consist of the CEO, president, chief operating officer, chief financial officer, and other key executives.
A ________ span of control creates a flat organization.
A. wide
B. tall
C. bureaucratic
D. formal
E. narrow
A. wide
Holding size constant, wide spans build a flat organization with fewer reporting levels.
Clarissa, VP of operations, was looking for a new direction and asked Jack to manage the reorganization of the call center, even though he was less experienced than many of the managers in that department. Jack found that the other managers were not cooperative in giving him access to their current procedures or ideas about new ones, and he felt powerless to compel them. Clarissa most likely made the mistake of
A. Delegating inappropriate tasks to junior manager.
B. Delegating responsibility without also delegating adequate authority to Jack.
C. "Passing the buck" for Jack's performance.
D. Taking credit for Jack's accomplishments.
E. Overestimating Jack's capabilities.
B. Delegating responsibility without also delegating adequate authority to Jack.
The person who gets the assignment should be given the authority, time, and resources to carry out the task successfully. Jack seems not to have adequate authority.
Precious Metals Decor manufactures the solid gold tableware used by government officials for State Department functions. Which of these would be considered a line department at this organization?
A. Research.
B. Legal.
C. Accounting.
D. Public relations.
E. Manufacturing.
E. Manufacturing.
Line departments are those that have responsibility for the principal activities of the firm. Line units deal directly with the organization's primary goods or services; in this case they deal with manufacturing gold tableware.
An organization's size has a large impact on its ability to respond to the environment.
TRUE
One of the most important characteristics of an organization, and one of the most important factors influencing its ability to respond effectively to its environment, is its size.
Large companies benefit from scale economies that can help lower operating costs, and they also enjoy greater purchasing power.
TRUE
Large size creates scale economies, which are lower costs per unit of production. Size can offer advantages like lower operating costs, greater purchasing power, and easier access to capital.
Survivor's syndrome occurs when an employee deals with the loss of a pet project or another major work failure.
FALSE
The people who lose their jobs because of downsizing are not the only ones deeply affected. Those who survive the process and keep their jobs tend to exhibit what has become known as survivor's syndrome. Their morale and productivity usually drop.
Learning organizations are good at
A. Problem diagnosis.
B. Coming to consensus based on gut feelings.
C. Containing knowledge.
D. Discouraging new approaches.
E. Shamelessly stealing ideas from other organizations.
E. Shamelessly stealing ideas from other organizations.
Learning organizations benchmark; that is, they identify and implement the best practices of other organizations, stealing ideas shamelessly.
Structurally, a high-involvement organization is
A. Tall and decentralized.
B. Flat and decentralized.
C. Tall and centralized.
D. Flat and centralized.
E. Departmentalized.
B. Flat and decentralized.
Structurally, even lower-level employees in a high-involvement organization have a direct relationship with a customer or supplier and thus receive feedback and are held accountable for a good or service delivery. The organizational form is a flat, decentralized structure built around a customer, good, or service.
Phoenix Paint, a manufacturer of designer indoor paint, is in the process of eliminating some positions in its organization. Management has carefully analyzed all of the jobs and strategically determined which to keep, with an eye toward protecting its most talented people. Phoenix is beginning to
A. Develop a CRM system.
B. Complete its retirement plan.
C. Downsize.
D. Implement ISO 9001.
E. Determine the corporate vision.
C. Downsize.
Downsizing is the planned elimination of positions or jobs. Common approaches to downsizing include eliminating functions, hierarchical levels, or even whole units.
According to Dr. Kenichi Ohmae, customers, corporation, and competitors make up the
A. Profit gateway.
B. Structure foundation.
C. Strategic triangle.
D. Control cycle.
E. Profit pyramid.
C. Strategic triangle.
Dr. Kenichi Ohmae points out that any business unit must take into account three key players: the company itself, the competition, and the customer. These components form what Ohmae refers to as the strategic triangle, as shown in Figure 9.2.
If an organization wishes to focus on responding to customer needs, it should include all types of customers, internal and external. It is most helpful to consider the customer as
A. The purchaser of the end product.
B. The user of the end product.
C. The consumer with which a relationship is maintained.
D. Wherever the work goes next.
E. Anyone interested in the product.
D. Wherever the work goes next.
As organizations focus on responding to customer needs, they soon find that the traditional meaning of a customer expands to include internal customers. The word "customer" now refers to the next process, or wherever the work goes next. Any recipient of a person's work, whether coworker, boss, subordinate, or external party, should be viewed as the customer.
Which of the following is a support activity in the generic value chain?
A. Research and development.
B. Operations.
C. Outbound logistics.
D. Procurement.
E. Marketing and sales.
D. Procurement.
A value chain is the sequence of activities that flows from raw materials to the delivery of a good or service, with additional value created at each step. A generic value chain is illustrated in Figure 9.3. Procurement is one of the support activities.
Total quality management is a way of managing in which everyone is committed to the ________ of his or her part of the operation.
A. simplifying
B. accountability
C. concurrent engineering
D. continuous improvement
E. ethical standards
D. continuous improvement
Total quality management (TQM) is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation. In business, success depends on having high-quality products.
Which of the following is a key organizational element of time-based competition?
A. Logistics.
B. Reduction of manufacturing time.
C. Just-in-time.
D. Concurrent engineering.
E. All of these are key organizational elements of time-based competition.
E. All of these are key organizational elements of time-based competition.
Time-based competition refers to strategies aimed at reducing the total time needed to deliver the good or service. TBC has several key organizational elements: logistics, just-in-time, and concurrent engineering. JIT production systems reduce the time to manufacture products.
Scenario B

Recently the president of Big League Bats has received a large amount of disapproving mail from fans indicating their displeasure with the firm's use of wood from the Brazilian rain forest for bats used by major league baseball players. Because of this the company is reviewing its entire process. In particular, Big League is assessing how it gets the wood used to make the bats, the process of making them, and what the major league players who use them are looking for in their products. The players are very demanding and specific when it comes to the design of their bats.


Bateman - Chapter 09

27. When the managers of Big League consider the requirements the players have for the bats, they are looking at what part of the value chain?
A. Inbound logistics.
B. Operations.
C. Outbound logistics.
D. Marketing and sales.
E. Research and development.
D. Marketing and sales.
Marketing and sales identify customer requirements and get customers to purchase the product.
People are a source of competitive advantage when competitors admire and copy their capabilities and contributions.
FALSE
People are a source of competitive advantage when their capabilities and contributions cannot be copied by others.
In the United States demographic trends have contributed to a shortage of workers with the appropriate skills and education levels.
TRUE
In the United States, demographic trends have contributed to a shortage of skilled and highly educated workers. Traditional labor-intensive jobs in agriculture, mining, and assembly-line manufacturing have made way for jobs in technical, financial, and customized goods and service industries that often require much more training and schooling. Additionally, the retirement of the baby boomer generation will remove many educated and trained employees from the workforce.
Despite new options, most jobs are still filled through newspaper advertising.
FALSE
Recent surveys suggest that employers place the greatest emphasis on referrals by current employees and online job boards. Surveys show that word-of-mouth recommendations are the way most job positions get filled.
Training is the term used for teaching managers and professional employees broader skills needed for their present and future jobs.
FALSE
Training usually refers to teaching lower-level employees how to perform their present jobs, while development involves teaching managers and professional employees broader skills needed for their present and future jobs.
The skills, knowledge, abilities and other characteristics needed to perform a job are detailed in a
A. Job description.
B. Job selection.
C. Job specification.
D. Job profile.
E. Job design.
C. Job specification.
A job analysis describes, in part, the skills, knowledge, abilities, and other characteristics needed to perform the job. This is called the job specification.
Surveys show that ________ are the way most job positions get filled.
A. want ads
B. word-of-mouth recommendations
C. private employment agencies
D. unions
E. drop-in applications
B. word-of-mouth recommendations
Surveys show that word-of-mouth recommendations are the way most job positions get filled. Not only is this method relatively inexpensive, but employees also tend to know who will be a good fit with the company.
KFAB Channel 9 wanted to hire a new morning news anchor. As part of the interview process, candidates were asked to read several impromptu news stories from the teleprompter. This requirement would be considered
A. Discriminatory.
B. A personality test.
C. A performance test.
D. An integrity test.
E. To have low validity.
C. A performance test.
In a performance test, the test taker performs a sample of the job.
Which of the following acts prohibits discrimination based on race, sex, color, national origin, and religion?
A. The Fair Labor Standards Act of 1938.
B. The Immigration Act of 1990.
C. The Equal Pay Act (1963).
D. The Americans with Disabilities Act (1990).
E. The Civil Rights Act of 1964.
E. The Civil Rights Act of 1964.
Laws aimed at protecting employees from discrimination include the 1964 Civil Rights Act, which prohibits discrimination in employment based on race, sex, color, national origin, and religion. Title VII of the act specifically forbids discrimination in such employment practices as recruitment, hiring, discharge, promotion, compensation, and access to training.
Behavioral appraisals are superior to trait appraisals because behavioral appraisals
A. Focus more on observable aspects of performance.
B. Are less expensive.
C. Do not require a consultant.
D. Focus on nonspecific behaviors.
E. Involve subjective judgment.
A. Focus more on observable aspects of performance.
Behavioral appraisals, while still subjective, focus on observable aspects of performance. They use scales describing specific, prescribed behaviors, which can help ensure that all parties understand what the ratings are really measuring. Because they are less ambiguous, they also can provide useful feedback.
The 2010 Affordable Care Act requires
A. Government assistance when long-term care is needed for those under the age of 65.
B. Employers, except small business, to provide health insurance for employees or pay a fee.
C. Employers to subsidize child care services for employees if such services are not provided on-site.
D. Employers to pay for outpatient drug and alcohol counseling for affected employees.
E. All of these.
B. Employers, except small business, to provide health insurance for employees or pay a fee.
In 2010 the federal government responded to concern about the rising number of uninsured people and the high cost of care by passing the Affordable Care Act. Among its many provisions, the law requires that, starting in 2014, employers (except small businesses) must either provide their employees with health insurance or else pay a fee to offset the cost of government subsidies for individuals buying their own insurance.
A collective bargaining agreement commonly establishes member rights in terms of
A. Wages, hours, and working conditions.
B. A grievance procedure.
C. The order of layoffs.
D. The use of seniority for pay increases.
E. All of these.
E. All of these.
A collective bargaining agreement commonly includes provisions for wages, hours, working conditions, the use of seniority to determine pay increases, job bidding, order of layoffs, and grievance procedures.
Suppose you have interviewed for a job with a local manufacturing firm. You know that you meet all the minimum requirements for the job, so you are not surprised when you receive a formal job offer from the company. However, two days later, the human resources director for the company calls to tell you that they are rescinding the job offer. When you ask why they are taking this action, you are told that the manager you were going to be working for does not believe that women should work in a manufacturing environment. The HR director tells you that it's nothing personal and wishes you well in your career.

39. Which of the following laws should the company be concerned about having violated in this situation?
A. The Age Discrimination in Employment Act.
B. The WARN Act.
C. The Fair Labor Standards Act.
D. The Americans with Disabilities Act.
E. Title VII of the Civil Rights Act of 1964.
E. Title VII of the Civil Rights Act of 1964.
The 1964 Civil Rights Act prohibits discrimination in employment based on race, sex, color, national origin, and religion. Title VII of the act specifically forbids discrimination in such employment practices as recruitment, hiring, discharge, promotion, compensation, and access to training.
Monolithic organizations have a more diverse employee population and take steps to involve persons from different cultural backgrounds.
FALSE
A monolithic organization has very little cultural integration; in other words, it employs few women, minorities, or any other groups that differ from the majority. Minority group members must adopt the norms of the majority to survive.
In multicultural organizations, diversity not only exists but is valued.
TRUE
In multicultural organizations, diversity not only exists but is valued. These organizations fully integrate gender, racial, and minority group members both formally and informally. Managers value and draw on the different experience and knowledge employees bring to the organization and help it achieve agreed-upon strategies and goals.
Submission to or rejection of sexual conduct that is used as a basis for employment decisions is referred to as
A. Inappropriate engagement.
B. Performance reciprocity.
C. Quid pro quo harassment.
D. Illegal contact.
E. Hostile environment.
C. Quid pro quo harassment.
Quid pro quo harassment occurs when submission to or rejection of sexual conduct is used as a basis for employment decisions.
Work-related issues for LGBT employees often include avoiding harassment and
A. Obtaining benefits for a spouse or domestic partner.
B. Obtaining adequate elder care.
C. Creating a glass ceiling.
D. Seeking time off for non-Christian religious holidays.
E. Gaining additional education.
A. Obtaining benefits for a spouse or domestic partner.
Employees who are gay, lesbian, bisexual, or transgendered (LGBT) may be concerned about work-related issues such as avoiding harassment, obtaining benefits for a same-sex spouse or domestic partner, or simply feeling able to not hide this aspect of who they are.
Which of the following is one of the top five approaches for more fully utilizing older employees?
A. Benefit packages targeted to older employees.
B. Part-time work arrangements.
C. Skill training for older employees.
D. Educating managers in ways to utilize older workers.
E. All of these are in the top five approaches.
E. All of these are in the top five approaches.
According to Table 11.6, the top five approaches to more fully utilize older employees are benefit packages targeted toward older employees, part-time work arrangements with continuation of benefits, educating managers about ways to utilize older employees, increased availability of part-time work for older employees (regardless of benefits), and skill training for older employees.
Work team diversity promotes creativity and innovation because people with different backgrounds
A. Value creativity and innovation.
B. Require creative efforts to bring out their productivity.
C. Hold different perspectives on issues.
D. Are more homogeneous.
E. Increase the likelihood of groupthink.
C. Hold different perspectives on issues.
Work team diversity promotes creativity and innovation because people from different backgrounds hold different perspectives.
The assumption that "we are all the same," otherwise known as the melting pot myth, illustrates which diversity assumption?
A. Homogeneity.
B. Similarity.
C. Parochialism.
D. Ethnocentrism.
E. Heterogeneity.
A. Homogeneity.
According to Table 11.7, homogeneity is the melting pot myth, or "we are all the same."
An organization that fully integrates minority group members, both formally and informally, is called a(n)
A. Monolithic organization.
B. Homogeneous organization.
C. Heterogeneous organization.
D. Multicultural organization.
E. Pluralistic organization.
D. Multicultural organization.
In contrast to the pluralistic organization, which fails to address the cultural aspects of integration, multicultural organizations fully integrate minority group members both formally and informally.
Typically the two components of diversity training are
A. Skill building and skill training.
B. Skill training and skills assessment.
C. Skills assessment and awareness training.
D. Awareness building and skill building.
E. Skill training and diversity assessment.
D. Awareness building and skill building.
The majority of U.S. organizations sponsor some sort of diversity training. Typically diversity training has two components: awareness building and skill building.
Scenario A

Carmela and Penny are colleagues who are experiencing problems in their jobs. They relate their experiences to each other because they are very concerned about their situations. Carmela speaks of a conversation with her immediate supervisor in which he (the supervisor) tells her that if she will stay with him for the weekend the next time they take a business trip together, he will recommend her for a promotion. It was clear, Carmela says, that "spending the weekend together" included sex. Penny has a different situation. She works in an area of the office where there are few women during the day. Her colleagues consistently make lewd remarks about her body and attempt to show her pornographic pictures.

49. Carmela is, more specifically, a victim of
A. Age discrimination.
B. Sexualized workplace.
C. Quid pro quo harassment.
D. Hostile environment.
E. Supervisor ceiling.
C. Quid pro quo harassment.
Quid pro quo harassment occurs when submission to or rejection of sexual conduct is used as a basis for employment decisions.
Scenario B

Your company has introduced a new program called "Stay to Grow." It has several different components:

1. Your company operates in a rural area where there are few young employees. The company has set up regular meetings for young employees new to this rural area to exchange information about activities in the area and housing options and simply to meet each other.
2. Since many of the managers are nearing retirement age, a component of the program includes assigning the older managers to help the younger ones meet people in the organization and get advice on managing their careers.
3. Since the younger employees like to take time off and travel, the company has introduced a flexible work system so that the young managers may work more hours each day and leave after they have completed their work for the week. This allows them more travel time for long weekends.

50. Component 1, as described here, is an example of
A. Career displacement.
B. Support groups.
C. Accountability.
D. Alternative work arrangements.
E. Mentoring.
B. Support groups.
Companies can help support groups promote information exchange and social support. Support groups provide emotional and career support for members who traditionally have not been included in the majority's informal groups.
Scenario C

Rachel is a candidate for a research position with Hammond Personal Care. She is very well qualified for the job. However, the manager for whom she would be working is concerned because Rachel has a hearing impairment. The manager has come to you for advice on this issue.

51. Rachel's hearing impairment qualifies legally because it substantially limits
A. Job qualifications.
B. Her desire to work.
C. Her life expectancy.
D. One or more major life activities.
E. Any or all of these.
D. One or more major life activities.
The Americans with Disabilities Act defines a disability as a physical or mental impairment that substantially limits one or more major life activities.
One of every four married women in two-income households earns more than her husband does.
TRUE
Almost 60 percent of marriages are dual-earner marriages. One of every four married women in two-income households earns more than her husband does.
Nationwide, turnover rates have been decreasing as more people are staying with their organizations for a longer period.
FALSE
Nationwide, turnover rates have been rising, with companies needing to replace more than 1 percent of their workers every month, and far more in the retailing and services industries.
Just _____ women are CEOs of Fortune 500 companies.
A. 12
B. 19
C. 27
D. 39
E. 72
A. 12
Just 12 women are chief executives of Fortune 500 companies; that's 12 out of 500. Looking at all board members of those companies, 13 percent are white women, and 3 percent are minority women.
When unwelcome sexual conduct has the purpose or effect of unreasonably interfering with job performance or creating an intimidating or offensive working environment, it is known as
A. Quid pro quo harassment.
B. Job evaluation.
C. Performance reciprocity.
D. Hostile environment.
E. Glass ceiling.
D. Hostile environment.
A hostile environment occurs when unwelcome sexual conduct has the purpose or effect of unreasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment.
A physical or mental impairment that substantially limits one or more major life activities is referred to as a
A. Physical defect.
B. Personality disorder.
C. Corporeal impairment.
D. Disability.
E. Physical deficiency.
D. Disability.
The Americans with Disabilities Act (ADA) defines a disability as a physical or mental impairment that substantially limits one or more major life activities.
According to the text, which of the following companies is among the top 10 for recruitment and retention of diverse employees?
A. Exxon Mobile.
B. Ernst & Young.
C. Pfizer.
D. Citigroup.
E. Google.
B. Ernst & Young.
According to Diversity Inc, Ernst & Young is one of the top 10 companies for recruitment and retention of diverse employees.
At one time in Portland, Oregon, about one-fifth of the city's population consisted of various ethnic minorities, but only 12 percent of new construction employees were minorities. The city government responded, increasing minority group members' participation in public contracts with what type of program?
A. Affirmative action.
B. Diversity.
C. Positive-effect recruitment.
D. Realignment.
E. Proactive recruitment.
A. Affirmative action.
includes special efforts to recruit and hire qualified members of groups that have been discriminated against in the past. Portland city officials used this type of program to increase minority participation in public contracts.
The assumption that "we are all the same," otherwise known as the melting pot myth, illustrates which diversity assumption?
A. Homogeneity.
B. Similarity.
C. Parochialism.
D. Ethnocentrism.
E. Heterogeneity.
A. Homogeneity.
According to Table 11.7, homogeneity is the melting pot myth, or "we are all the same."
Organizations that are considered pluralistic would be characterized by which of the following?
A. Low levels of conflict.
B. Prevalence of discrimination and prejudice.
C. Full integration of minority group members.
D. Diversity being valued.
E. Actions that attempt to involve minority members.
E. Actions that attempt to involve minority members.
Pluralistic organizations have a more diverse employee population than monolithic ones, and take steps to involve persons from different backgrounds. Yet these employees are not as fully integrated as in multicultural organizations.
An organization that fully integrates minority group members, both formally and informally, is called a(n)
A. Monolithic organization.
B. Homogeneous organization.
C. Heterogeneous organization.
D. Multicultural organization.
E. Pluralistic organization.
D. Multicultural organization.
In contrast to the pluralistic organization, which fails to address the cultural aspects of integration, multicultural organizations fully integrate minority group members both formally and informally.
The NBA currently has the highest percentage of minority vice presidents and league office managers in the history of men's sports. NBA spokesperson Brian McIntyre reports that this is business as usual for the organization. He says NBA commissioner David Stern "has long felt that a diverse workplace is the only workplace." This best illustrates which of the following components of an organization's diversity plan?
A. Secure top management's leadership and commitment.
B. Assess the organization's progress toward goals.
C. Attract employees.
D. Train employees in diversity.
E. Retain employees.
A. Secure top management's leadership and commitment.
Obtaining top management's leadership and commitment is critical for diversity programs to succeed. Otherwise the rest of the organization will not take the effort seriously.
Component 3, as described here, is an example of
A. Career displacement.
B. Support groups.
C. Accountability.
D. Alternative work arrangements.
E. Mentoring.
D. Alternative work arrangements.
Managers can support diversity by recognizing cultural and religious holidays, differing modes of dress, and dietary restrictions. Additionally they can perhaps agree to alternative work arrangements (flextime).