Fundamentals of Management 8th Edition - Chapter 2 Test Bank

Fundamentals of Management, 7e (Robbins/DeCenzo/Coulter) Chapter 2 The Management Environment 1) The $10 test showed that clever management can
benefit both workers and managers. Answer: TRUE E !lanation: The $10 test that gave ho"sekee!ers "! to $10 for cleaning rooms im!eccabl# was a s"ccess for both workers and managers. $orkers earned e tra !a#. %anagers got the high standards for cleaning that the# were looking for &iff: 1 'age Ref: () *b+ective: (.1 () The $10 test was enth"siasticall# acce!ted b# workers immediatel#. Answer: ,A-.E E !lanation: The $10 test was at first resented b# workers. The# didn/t like being checked "! on. As time !assed0 workers ad+"sted to the standards of the test and began to look forward to the e tra mone# the# co"ld earn. &iff: ( 'age Ref: () *b+ective: (.1 1) *ne area in which most global com!anies are c"tting back is c"stomer service. Answer: ,A-.E E !lanation: %ost com!anies are recogni2ing that c"stomer service is the ke# to their s"ccess. .o the# are increasing0 rather than red"cing0 c"stomer service efforts. &iff: ( 'age Ref: () *b+ective: (.1 3) A ma+or ca"se of the economic downt"rn that began in (004 was too m"ch debt taken on b# both cons"mers and b"sinesses. Answer: TRUE E !lanation: 5hea! and available credit in the earl# (000s "shered in an atmos!here in which cons"mers and b"sinesses borrowed heavil#. $hen things went bad in the fall of (0040 man# !eo!le were left owing more than the# co"ld !a#. &iff: ( 'age Ref: 10 AA5.6: 7lobali2ations *b+ective: (.1 8) The U... econom# has been the !rimar# model for economic s#stems aro"nd the world. Answer: TRUE E !lanation: The a!!roach "sed b# the U... economic s#stem that feat"res o!en markets0 cor!orate ownershi!0 mass !rod"ction techni9"es0 and hierarchical organi2ation str"ct"res has been em"lated aro"nd the world. %an# nations have !ros!ered "sing this a!!roach or a modified version of the a!!roach. &iff: ( 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.1
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<) %"ltinational cor!orations maintain significant o!erations in two or more co"ntries sim"ltaneo"sl#. Answer: TRUE E !lanation: A m"ltinational cor!oration comes in three different formsthe m"ltidomestic cor!oration0 the global cor!oration0 and the transnational cor!oration. All three forms maintain o!erations in m"lti!le co"ntries. &iff: ( 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.( =) Transnational cor!orations r"n their b"sinesses from their home co"ntr#. Answer: ,A-.E E !lanation: A transnational cor!oration is an %>5 that has different o!erations in different co"ntries b"t has no centrali2ed ?head9"arters? or home co"ntr#. &iff: ( 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.( 4) $hen organi2ations go global0 the# often start b# sim!l# e !orting !rod"cts to one or more foreign co"ntries. Answer: ,A-.E E !lanation: 6efore e !orting0 organi2ations often begin the globali2ation !rocess b# o"tso"rcing labor or materials. An e am!le of o"tso"rcing is having a factor# in Asia man"fact"re !rod"cts for a U... based com!an#. &iff: ( 'age Ref: 13 AA5.6: 7lobali2ations *b+ective: (.( )) After the o"tso"rcing stage0 com!anies that are going global often t"rn to e !orting and im!orting goods across international borders. Answer: TRUE E !lanation: E !orting and im!orting is often the second stage an organi2ation !asses thro"gh to go global. &iff: ( 'age Ref: 13 AA5.6: 7lobali2ations *b+ective: (.( 10) -icensing and franchising t#!icall# follow the e !ort@im!ort !hase of globali2ation. Answer: TRUE E !lanation: An e am!le of licensing wo"ld sell the rights to bottle a well@known soft drink to a !lant in another co"ntr#. A franchise might allow resta"rants to "se a well@known chain/s name and !rod"cts in another co"ntr#. &iff: ( 'age Ref: 18 AA5.6: 7lobali2ations *b+ective: (.(
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11) ;n a strategic alliance0 com!anies +oin together to form a se!arate entit# to !rod"ce a !rod"ct. Answer: ,A-.E E !lanation: ;n a strategic alliance0 com!anies +oin together to create a !rod"ct. $hen the com!anies +oining create a se!arate organi2ation to create their !rod"ct0 the enter!rise is called a +oint vent"re. &iff: ( 'age Ref: 18 AA5.6: 7lobali2ations *b+ective: (.( 1() %anagers with a !arochial view of the world tend to see things from the !oint of view of a foreign c"lt"re. Answer: ,A-.E E !lanation: 'arochialism is a narrow0 rather than a broad !oint of view. A manager with a !arochial view sees things onl# thro"gh his or her own c"lt"re and does not tr# to "nderstand the !ers!ective of a !erson from another c"lt"re. &iff: ( 'age Ref: 1< AA5.6: &iversit# *b+ective: (.( 11) ,rench organi2ations have a ver# different view of stat"s than American organi2ations. Answer: TRUE E !lanation: The ,rench see stat"s as the s"m of s"ch factors as ed"cation0 e !erience0 and seniorit#. American organi2ations tend to confer stat"s onl# for individ"al achievements. &iff: 1 'age Ref: 1< AA5.6: &iversit# *b+ective: (.( 13) According to Aofstede0 co"ntries s"ch as .inga!ore and Ba!an are more collectivist than the United .tates. Answer: TRUE E !lanation: Aofstede/s framework rates Ba!an and .inga!ore as ?collectivist? and the United .tates as ?individ"alistic.? A collectivist c"lt"res has a stronger gro"! identit# than an individ"alistic c"lt"re. &iff: ( 'age Ref: 1< AA5.6: &iversit# *b+ective: (.( 18) The United .tates is an e am!le of a co"ntr# with small !ower distance. Answer: TRUE E !lanation: Aaving a low !ower distance indicates that !eo!le in a c"lt"re do not tolerate e cessive as#mmetries in !ower in their comm"nities. ;f the United .tates has a low !ower distance it means that !eo!le are war# of a ?big boss? who controls man# instit"tions in a comm"nit#. 5onversel#0 a c"lt"re with a high !ower distance wo"ld be more acce!ting of a ?big boss? in their midst. &iff: ( 'age Ref: 1< AA5.6: &iversit# *b+ective: (.(
1<) A societ# with high "ncertaint# avoidance relies on r"les and tr"sts its social instit"tions to deal with an "ncertain f"t"re. Answer: TRUE E !lanation: Aigh "ncertaint# avoidance indicates a c"lt"re that relies on r"les and social instit"tions to deal with "ncertaint#. 'eo!le in a societ# with low "ncertaint# avoidance !refer fewer r"les that are more fle ible and rel# less on formal social instit"tions. &iff: 1 'age Ref: 1<@14 AA5.6: Anal#tic .kills *b+ective: (.( 1=) 5"lt"res with a high assertiveness rating tend to have !eo!le who are timid and sh#. Answer: ,A-.E E !lanation: A high assertive rating is the o!!osite of being timid and sh#. Assertive !eo!le are confrontational and not rel"ctant to demand what the# want. &iff: ( 'age Ref: 1= AA5.6: Anal#tic .kills *b+ective: (.( 14) ,"t"re orientation is a meas"re of how s"ccessf"l a societ# is at dela#ing gratification. Answer: TRUE E !lanation: 'eo!le who dela# gratification are able to t"rn down small rewards in the !resent to rea! larger rewards in the f"t"re. .ocieties that save for the f"t"re are generall# s"ccessf"l. &iff: ( 'age Ref: 1= AA5.6: Anal#tic .kills *b+ective: (.( 1)) Aofstede based his ratings on the traits of !eo!le of different nationalities with whom he was !ersonall# ac9"ainted. Answer: ,A-.E E !lanation: Aofstede/s res"lts were based on interviews of over 1000000 ;6% em!lo#ees in 30 co"ntries0 not !eo!le he knew !ersonall#. &iff: 1 'age Ref: 1< *b+ective: (.( (0) Aofstede/s findings were not confirmed b# later st"dies. Answer: ,A-.E E !lanation: Aofstede/s findings were generall# confirmed b# the 7-*6E st"d# that was com!leted in (001. 5ategories were added and modified somewhat0 b"t both st"dies had the same general res"lts. ,or e am!le0 Ba!an rated high on the collectivism scale for both Aofstede/s and the 7-*6E st"d#. &iff: ( 'age Ref: 14 *b+ective: (.(
(1) There is little evidence that managers of ma+or organi2ations ever fail to act res!onsibl# and ethicall#. Answer: ,A-.E E !lanation: .everal high@!rofile scandals indicate that there is a great deal of evidence that managers fail to act res!onsibl# and ethicall#. The e !loits of Enron0 6ernard %adoff0 A;70 Aealth.o"th and man# others !rovide e am!les of managers of ma+or organi2ations failing to act res!onsibl# and ethicall#. &iff: ( 'age Ref: 14 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 (() The classical view of organi2ational social res!onsibilit# is that management/s onl# social res!onsibilit# is to ma imi2e !rofits. Answer: TRUE E !lanation: The classical view is hard to arg"e with. ;f a !rofit@making organi2ation/s goal is to make mone# for the stockholders0 an# activit# that fails to ma imi2e !rofits can be seen as ?cheating? the stockholders. &iff: ( 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 (1) ;n the socioeconomic view of organi2ational social res!onsibilit#0 management/s res!onsibilit# incl"des !rotecting and im!roving societ#. Answer: TRUE E !lanation: The socioeconomic view ass"mes that the organi2ation is !art of societ# and that all !arts of societ# have a res!onsibilit# to do their share to do good. ;f one com!onent of societ# feels e em!t from this res!onsibilit# then others will 9"ickl# follow in kind0 breaking the social com!act and inviting chaos. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 (3) *ne arg"ment against b"sinesses cham!ioning social res!onsibilit# iss"es is that being sociall# res!onsible can harm an organi2ation/s !"blic image. Answer: ,A-.E E !lanation: ;n toda#/s world0 rather than harm an organi2ation/s !"blic image0 being sociall# res!onsible serves to im!rove an organi2ation/s !"blic image0 identif#ing it as a force for good. &iff: 1 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
(8) -ong@term stabilit# is an arg"ment for social res!onsibilit#. Answer: TRUE E !lanation: .ociall# res!onsible com!anies tend to have more long@term stabilit# than their co"nter!arts that are not sociall# res!onsible. 'res"mabl#0 a better !"blic image from being sociall# res!onsible hel!s b"ild com!an# lo#alt#0 which in t"rn becomes an im!ortant asset d"ring hard economic times. &iff: ( 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 (<) As long as it has broken no laws and done nothing "nethical0 a b"siness has f"lfilled its obligation to societ#. Answer: ,A-.E E !lanation: 'eo!le toda# believe that since a b"siness is given the o!!ort"nit# to f"nction in an economic arena0 it is obligated to do more than +"st avoid criminal or "nethical actions. ;nstead0 a b"siness is obligated to im!rove conditions in the world. &iff: 1 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 (=) A good e am!le of social res!onsiveness is a com!an# whose managers cond"ct b"siness in an ethical wa# and strictl# follows all local laws. Answer: ,A-.E E !lanation: .ocial res!onsiveness re9"ires the organi2ation to be res!onsive to some !o!"lar social need. ,or e am!le0 a com!an# that b"ilds a comm"nit# recreation center in a comm"nit# that lacks facilities is being sociall# res!onsive. &iff: 1 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 (4) An# action that is illegal is "nethical and an# action that is legal is ethical. Answer: ,A-.E E !lanation: There are man# things that are legal b"t not ethical. ,or e am!le0 it is legal to be wastef"l with fossil f"els0 b"t given the !roblems we face toda# with global climate change0 !oll"tion0 and high energ# !rices0 this wastef"lness is clearl# not ethical. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 ()) Aaving a written code of ethics ens"res that an organi2ation/s members will behave ethicall#. Answer: ,A-.E E !lanation: *ver )0 !ercent of organi2ations0 large and small0 have written codes of ethics. Cet0 that doesn/t !revent organi2ations like Enron from committing wildl# "nethical and illegal acts. &iff: ( 'age Ref: 31 AA5.6: Anal#tic .kills *b+ective: (.1
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10) %anagers have fo"nd that a ?melting !ot? a!!roach of e !ecting diverse em!lo#ees to assimilate is s"fficient for harmon# in the work!lace. Answer: ,A-.E E !lanation: %anagers have fo"nd that allowing workers to assimilate on their own is not a good a!!roach. %an# workers have no interest in assimilation0 so managers need to find wa#s to accommodate these !eo!le and make s"re the# are comfortable and !rod"ctive. &iff: ( 'age Ref: 3( AA5.6: &iversit# *b+ective: (.3 11) The U... workforce is now over 80 !ercent female. Answer: ,A-.E E !lanation: The U... workforce stands now at 3).1 !ercent female. $ith changes in em!lo#ment that are likel# to take !lace after the c"rrent recession ends0 women are likel# to make "! the ma+orit# of workers. &iff: 1 'age Ref: 31 AA5.6: &iversit# *b+ective: (.3 1() %anagers sho"ld e !ect contingent workers and core em!lo#ees to be e9"all# committed to the organi2ation/s goals. Answer: ,A-.E E !lanation: 5ontingent workers are em!lo#ees who work !art@time0 +"st for a s!ecific !ro+ect0 or as needed on a !rovisional basis. .ince the# "s"all# work on a tem!orar# interim basis0 managers cannot e !ect contingent workers to have the same level of commitment to and identification with the organi2ation that !ermanent0 f"ll@time em!lo#ees have. &iff: ( 'age Ref: 33 *b+ective: (.3 11) Traditionall#0 managers ignored c"stomer relations and foc"sed on other things. Answer: TRUE E !lanation: Until recentl#0 managers tended to leave c"stomer service to marketing de!artments. Aowever0 the recent s"ccess of man# c"stomer@friendl# organi2ations s"ch as -.-. 6ean has thr"st c"stomer service into a front@and@center !osition in management circles. &iff: ( 'age Ref: 3< *b+ective: (.8 13) To increase c"stomer res!onsiveness0 organi2ations sho"ld hire em!lo#ees who are o"tgoing and friendl#. Answer: TRUE E !lanation: 5"stomer service begins with the em!lo#ee him@ or herself. A !erson who tends to be hel!f"l0 em!athetic0 friendl#0 and o"tgoing tends to make a good c"stomer service re!. &iff: 1 'age Ref: 3= AA5.6: 5omm"nication *b+ective: (.8
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18) To create a s"ccessf"l c"stomer service c"lt"re0 an organi2ation sho"ld draft a written set of c"stomer service r"les that sho"ld be stringentl# followed. Answer: ,A-.E E !lanation: R"les are too confining for c"stomer service re!s to be able to do their +obs well. 5"stomer service re!s need the freedom to be creative in meeting the c"stomer/s needs. &iff: ( 'age Ref: 3= *b+ective: (.8 1<) 7ood listening skills are an im!ortant characteristic of a s"ccessf"l c"stomer service em!lo#ee. Answer: TRUE E !lanation: -istening skills are critical for c"stomer service s"ccess. ;f the re!resentative is not a good listener0 he or she will not be able to "nderstand the c"stomer/s !roblem. ;f the !roblem is not "nderstood0 it is not likel# to be solved. &iff: ( 'age Ref: 3= AA5.6: 5omm"nication *b+ective: (.8 1=) The $10 hotel test was deemed a s"ccess beca"se DDDDDDDD. A) managers got better service and workers got more !a# 6) managers got better service witho"t increasing their costs 5) workers got !aid more witho"t act"all# increasing their work load &) hotel occ"!anc# rates increased d"ring the time the !olic# was in !lace. Answer: A E !lanation: A) The $10 test gave ho"sekee!ers a !redictable wa# to earn e tra !a#. ;f the# f"lfilled all of management/s re9"irements0 the# wo"ld get an instant bon"s of "! to $10. This res"lted in better service for managers and more mone# for workers. The !olic# did increase costs for managers and work load for ho"sekee!ers somewhat. The !olic# might have increased c"stomer satisfaction0 b"t there is no doc"mented evidence that it act"all# increased occ"!anc# rates. &iff: ( 'age Ref: () *b+ective: (.1 14) $hich of the following is >*T a feat"re of the U... model of ca!italism in the twentieth and twent#@first cent"riesE A) o!en markets 6) large@scale o!erations 5) f"ll lifetime +ob sec"rit# &) cor!orate model of ownershi! and organi2ation Answer: 5 E !lanation: 5) The U... model that has been em"lated aro"nd the world incl"des o!en markets0 large o!erations based on mass !rod"ction0 and a hierarchical cor!orate model of organi2ation that feat"res se!arate b"siness divisions and collective bargaining with labor. The U... model does not ens"re +ob sec"rit# for an# !eriod of time. &iff: ( 'age Ref: 11 *b+ective: (.1
1)) The financial crisis that began in (004 has res"lted in the c"rrent climate in which there has been DDDDDDDD b"siness and b"siness leaders. A) new@fo"nd confidence in 6) indifference toward 5) new c"riosit# in &) an erosion of tr"st in Answer: & E !lanation: &) The (004 crisis "shered in an era in which a great deal of tr"st and good will was destro#ed b# the overreaching of financial managers d"ring the !revio"s decade. Taking on too m"ch risk and making s!ec"lative deals ended "! bringing the econom# to its knees and threatening the solvenc# of the entire financial s#stem. $hen the federal government bailed o"t the large instit"tions whose irres!onsible actions had ca"sed the crisis0 citi2ens were o"traged0 and that anger has not s"bsided as bankers contin"e to behave recklessl# and reward themselves with lavish com!ensation in the face of ab+ect fail"re. The other choicesconfidence0 indifference0 or c"riosit# in the s#stemare all incorrect beca"se the# don/t evince this anger and distr"st. &iff: ( 'age Ref: 10 *b+ective: (.1 30) $hich of the following is most likel# to be the biggest change that the ?new econom#? will "sher inE A) organi2ations taking on more risk 6) fewer reg"lations 5) a smaller government role &) a larger government role Answer: & E !lanation: &) The fallo"t from the financial crisis that began in (004 is likel# to res"lt in increased reg"lation0 oversight0 and enforcement of standards and r"les b# the government. %ore reg"lations and a larger role for government wo"ld clearl# r"le o"t a smaller government role or fewer reg"lations. Enforcement of standards and r"les as well as increased reg"lation wo"ld !recl"de organi2ations taking on increased risk and wo"ld be likel# to decrease the amo"nt of risk the# take on. &iff: ( 'age Ref: 11 *b+ective: (.1 31) 7lobali2ation can be best characteri2ed as a b"siness climate in which there are DDDDDDDD. A) rigid international bo"ndaries 6) no international bo"ndaries 5) rigid r"les and standards &) no r"les or standards Answer: 6 E !lanation: 6) A globali2ed world is a world in which bo"ndaries between co"ntries largel# disa!!ear between co"ntries. ;n a global organi2ation0 different o!erations of the same organi2ation can be located across the globe from one another. R"les and standards in a globali2ed world still e ist0 b"t the# need to be fle ible to conform to local c"stoms0 laws0 and traditions. &iff: ( 'age Ref: 1(@11 AA5.6: 7lobali2ations *b+ective: (.(
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3() $hich of the following is >*T a ke# characteristic of a global organi2ationE A) e changes goods and services with cons"mers in other co"ntries 6) em!lo#s high@level technical em!lo#ees and managerial talent from other co"ntries 5) "ses reso"rces from other co"ntries &) has a home co"ntr# in which all decisions are made and all !rofits flow Answer: & E !lanation: &) *n the most basic level0 global organi2ations e change with foreign co"ntries. Aaving e ec"tives and to!@level managers who are not domestic increases an organi2ation/s global !rofile0 while being f"nded and receiving other reso"rces from non@domestic so"rces Ffinancial globali2ation) increases the global !rofile to an even greater degree. ,inall#0 not all global organi2ations claim a home co"ntr#. Transnational organi2ations integrate o!erations in several locations witho"t designating one of them as the home base. &iff: 1 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.( 31) A m"ltinational cor!oration F%>5) DDDDDDDD. A) is an# organi2ation that maintains o!erations in more than one co"ntr# 6) is defined as a com!an# that has its home base in the United .tates and vario"s o!erations overseas 5) incl"des an# com!an# that e !orts goods overseas &) is defined as an# com!an# that has no ?home base? Answer: A E !lanation: A) An %>5 is an# cor!oration that has o!erations in more than one co"ntr#. The t#!ical %>5 has its head9"arters in its home co"ntr# and other o!erations in other co"ntries. A com!an# with its home base in the United .tates and vario"s o!erations overseas seems nearl# correct b"t fails to take transnational organi2ationsGorgani2ations that don/t have a ?home base?Ginto acco"nt. A com!an# that e !orts goods overseas is incorrect beca"se a com!an# can easil# shi! overseas witho"t having overseas o!erations. &iff: ( 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.( 33) A global cor!oration DDDDDDDD. A) centrali2es management in a single home co"ntr# 6) decentrali2es management so that each local co"ntr#/s o!eration is managed locall# 5) decentrali2es management so there is no single home location &) has two main management locations located on different sides of the globe Answer: A E !lanation: A) A global cor!oration is the classic stereot#!e of an %>5 with domestic centrali2ed management in the home co"ntr# that coordinates o!erations overseas. E on is an e am!le of a t#!ical global cor!oration. &ecentrali2ing management so that each local co"ntr#/s o!eration is managed locall# is an e am!le of a m"ltidomestic cor!oration. &ecentrali2ing management so there is no single home location describes a transnational cor!oration. Aaving two main management locations on different sides of the globe ma# e ist b"t it is not a recogni2ed model of an %>5. &iff: ( 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.(
38) DDDDDDDD is a good e am!le of a m"ltidomestic cor!oration. A) 5oca@5ola 6) >estlH 5) 'rocter I 7amble &) The >ew Cork Cankees Answer: 6 E !lanation: 6) ;n a m"ltidomestic cor!oration0 o!erations in each co"ntr# are controlled locall#. 'rod"cts and services offered b# the com!an# in one co"ntr# ma# differ from those offered in another co"ntr#. >estlH is a classic e am!le of a m"ltidomestic with fairl# a"tonomo"s str"ct"res in different co"ntries that are overseen b# the !arent com!an#. 6oth 5oca@5ola and 'rocter I 7amble are centrali2ed global cor!orations0 not m"ltidomestics. The Cankees0 on the other hand0 are strictl# a domestic organi2ation with significant o!erations onl# in the United .tates. &iff: ( 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.( 3<) $hich of the following best characteri2es a transnational cor!orationE A) a single central home@co"ntr# management 6) an organi2ation in which m"lti!le o!erations f"nction with a large degree of a"tonom# 5) a loose alliance of totall# se!arate0 wholl# inde!endent com!anies &) an organi2ation in which m"lti!le o!erations are all integrated toward the same goals Answer: & E !lanation: &) A transnational cor!oration is a ?borderless organi2ation? of m"lti!le o!erations that have no single home base. This r"les o"t a single central home@co"ntr# management since a transnational is not centrali2ed and has no home@co"ntr#. The choices regarding having m"lti!le o!erations f"nction with a large degree of a"tonom# and loose alliance of se!arate com!anies are not correct beca"se o!erations in a transnational are integrated and do not work inde!endentl# of one another. &iff: ( 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.( 3=) $hich of the following wo"ld >*T be called an ?American com!an#?E A) a m"ltidomestic with a home base in %em!his0 Tennessee 6) a global cor!oration that originated in &allas0 Te as and has o!erations in 1( co"ntries 5) a transnational that originated in >ew Cork 5it# with o!erations in < co"ntries &) a global cor!oration that began in Ba!an b"t has since relocated and now has its sole head9"arters in 5hicago Answer: 5 E !lanation: 5) The m"ltidomestic in %em!his0 the global cor!oration from &allas0 and the global cor!oration that now has its head9"arters in 5hicago ma# have different managing arrangements0 b"t all three have a home base in the United .tates and none of the three are transnationals. That means that all three are ?American com!anies.? That cannot be said of the transnational that originated in >ew Cork 5it#0 which b# virt"e of being a transnational is ?borderless? and therefore cannot be called an ?American com!an#.? &iff: 1 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.(
34) $hich choice constit"tes the t#!ical first ste! for an organi2ation that is ?going global?E A) o"tso"rcing 6) franchising 5) licensing &) strategic alliance Answer: A E !lanation: A) To go global0 a com!an# "s"all# begins b# global so"rcing or o"tso"rcing0 in which the com!an# !"rchases materials or labor from a foreign market at a lower !rice than it can obtain from its domestic market. .te!s that follow o"tso"rcing incl"de franchising and licensing0 both of which involve selling an organi2ation/s brand name and other trade !ractices for a fee. An even later stage involves a strategic alliance0 in which the com!an# forms a !artnershi! with a foreign organi2ation. &iff: ( 'age Ref: 13 AA5.6: 7lobali2ations *b+ective: (.( 3)) ,ranchising is "sed widel# b# DDDDDDDD. A) "niversities 6) acco"nting firms 5) resta"rant chains &) electric !ower com!anies Answer: 5 E !lanation: 5) ,ranchising involves selling the rights to do b"siness "nder a com!an# brand name0 "sing the tried@and@tr"e methods develo!ed b# the com!an#. This t#!e of o!eration works es!eciall# well with s"ch b"sinesses as resta"rant chains0 which develo! a recogni2able image and men" that the# sell to local b"siness !eo!le who set "! inde!endent resta"rants that are often s"!!lied b# the !arent com!an#. >one of these methods wo"ld work well for "niversities0 acco"nting firms0 or !ower com!anies beca"se none of these services co"ld be easil# d"!licated at a location that was se!arate from the !rimar# enter!rise. &iff: 1 'age Ref: 18 *b+ective: (.( 80) A f"ll# global organi2ation might set "! a DDDDDDDD with a foreign com!an# to create a new0 inde!endent com!an# that !rod"ces a s!ecific !rod"ct. A) foreign s"bsidiar# 6) strategic alliance 5) licensing agreement &) +oint vent"re Answer: & E !lanation: &) A +oint vent"re "ses the talents and e !ertise of two se!arate com!anies to create a s!ecific !rod"ct. A +oint vent"re differs from a strategic alliance in that a new0 inde!endent com!an# is created in a +oint vent"re b"t not in a strategic alliance. A licensing agreement is a t#!e of !artnershi! b"t it does not create a new !rod"ct or a se!arate0 new com!an#. ,inall#0 a foreign s"bsidiar# is not the correct choice here beca"se it is a foreign branch of an e isting com!an# and not a t#!e of !artnershi! between com!anies. &iff: ( 'age Ref: 18 AA5.6: 7lobali2ations *b+ective: (.(
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81) $hich of the following is "s"all# fo"nd in the final stage of an organi2ation/s global evol"tionE A) e !orting !rod"cts to other co"ntries 6) o"tso"rcing +obs to foreign co"ntries 5) establishing strategic alliances with !artners &) licensing !rod"cts in foreign co"ntries Answer: 5 E !lanation: 5) The se9"ence of events for ?going global? t#!icall# begins with o"tso"rcing labor and materials to other co"ntries0 followed b# e !orting and im!orting0 then licensing !rod"cts to foreign markets. The third and final stage of the !rocess incl"des forming strategic alliances with foreign !artners. A strategic alliance re!resents a more ?global? stage than the others beca"se it transfers some decision@making a"thorit# of the organi2ation to its foreign !artner0 thereb# decentrali2ing and th"s globali2ing the !ower of the organi2ation. &iff: ( 'age Ref: 18 AA5.6: 7lobali2ations *b+ective: (.( 8() *f the a!!roaches to !"rs"ing international markets0 develo!ing a DDDDDDDD involves the greatest commitment and risk. A) franchise 6) +oint vent"re 5) strategic alliance &) foreign s"bsidiar# Answer: & E !lanation: &) Unlike the other three choices0 a foreign s"bsidiar# is not a !artnershi! with an e isting foreign com!an#. ;nstead0 a foreign s"bsidiar# re9"ires an organi2ation to commit reso"rces to b"ild an entire facilit# in a foreign co"ntr#. $itho"t a !artner for g"idance or shared res!onsibilit#0 if things go wrong the organi2ation itself will bear all conse9"ences of the fail"re Gmaking the s"bsidiar# the riskiest of all fo"r vent"res. &iff: ( 'age Ref: 33 AA5.6: 7lobali2ations *b+ective: (.( 81) Boint vent"res are a t#!e of DDDDDDDD. A) license 6) franchise 5) foreign s"bsidiar# &) strategic alliance Answer: & E !lanation: &) A +oint vent"re is a s!ecial t#!e of strategic alliance. ;n a generic strategic alliance0 com!anies merel# form a !artnershi! to create a new !rod"ct. A +oint vent"re is not merel# a !artnershi!J it creates an entirel# new entit# that bears the name of neither !artner and is se!arate from each organi2ation. A license or franchise does not 9"alif# as a strategic alliance beca"se the !arent com!an# maintains control of the !rod"ctGit merel# sells the right to !rod"ce the !rod"ct to a foreign entit#. A foreign s"bsidiar#0 on the other hand0 is not an alliance of an# t#!e. ;nstead0 it is a branch of the original organi2ation that has been b"ilt on foreign soil. &iff: ( 'age Ref: 18 AA5.6: 7lobali2ations *b+ective: (.(
83) A 5oca@5ola bottling !lant in 6olivia is wholl# owned b# a local b"siness!erson. $hat kind of vent"re is this !lant likel# to beE A) a franchise 6) a licensed !lant 5) a foreign s"bsidiar# &) a +oint vent"re Answer: 6 E !lanation: 6) The !lant cannot be a +oint vent"re or foreign s"bsidiar# beca"se it is owned b# the local b"siness!erson. The !lant is not likel# to be a franchise beca"se it is is marketing a single !rod"ctG5oca@5olaGrather than an entire o!eration. That leaves the correct res!onse0 a licensed !lant. The com!an# has licensed the right to !rod"ce 5oca@5ola to the local b"siness!erson who has com!lete control of the !lant. &iff: ( 'age Ref: 18 AA5.6: 7lobali2ations *b+ective: (.( 88) $hich of the following is the best s#non#m for the word parochialE A) religio"s 6) catholic 5) broad &) narrow Answer: & E !lanation: &) A !arochial view is a narrow view of the world. The word parochial is often associated with religio"s schools Fs"ch as Roman 5atholic schools) beca"se those schools have a narrow foc"sGthe# serve onl# members of the ch"rch. >ote that a Bewish or %"slim school can also be called a !arochial school0 so the term has no attachment to ?catholic? or the Roman 5atholic faith. ;n fact0 the term catholic itself means ?broad?Gthe o!!osite of the meaning of !arochial. &iff: 1 'age Ref: 1< *b+ective: (.( 8<) 'arochialism is DDDDDDDD. A) acce!tance of diverse !oints of view 6) a desire to leave one/s own c"lt"re for a foreign c"lt"re 5) a tendenc# to view the world thro"gh a single !ers!ective &) recognition of diverse religio"s beliefs Answer: 5 E !lanation: 5) A manager with a !arochial !oint of view ass"mes that there is onl# one wa# to view the worldhis wa#and that all !eo!le0 des!ite their different traditions0 c"lt"re0 "!bringing0 and life e !eriences sho"ld share his val"es and beliefs. 'arochialism is a form of arrogance beca"se it fails to acce!t the !ossibilit# that other !oints of view can be valid. ,or this reason0 the choices regarding acce!tance of diverse !oints of view and recognition of diverse religio"s beliefs are incorrect. The choice regarding a desire to leave one/s c"lt"re is incorrect beca"se abandoning one/s c"lt"re constit"tes an a!!ro!riation0 not a re+ection of a divergent !oint of view and is therefore the o!!osite of !arochial. &iff: ( 'age Ref: 1< AA5.6: &iversit# *b+ective: (.(
8=) .tat"s in ,rance within a cor!oration is largel# DDDDDDDD. A) meas"red in the same wa# it is in the United .tates. 6) based on how m"ch mone# a !erson makes 5) based on s"ch things as seniorit# and ed"cational level &) based on an individ"al/s !ersonal accom!lishments Answer: 5 E !lanation: 5) A look at how stat"s in ,rance is meas"red !rovides an e am!le of how val"es can be different in different c"lt"res. ;n the United .tates0 stat"s is generall# based on a !erson/s accom!lishments. ;n ,rance0 seniorit# and ed"cation level are m"ch more im!ortant for determining stat"s. %one# is !robabl# more im!ortant for stat"s than either c"lt"re is willing to admit0 b"t in an# event0 it has not been identified as the !rimar# factor for conferring stat"s. &iff: ( 'age Ref: 1< AA5.6: &iversit# *b+ective: (.( 84) ;n his st"d# of differences in c"lt"ral environments0 7eert Aofstede fo"nd that DDDDDDDD. A) !eo!le are largel# the same from c"lt"re to c"lt"re with res!ect to val"es 6) the views of managers differ greatl# from those of em!lo#ees with res!ect to val"es 5) the views of ;6% em!lo#ees differ widel# from the general !o!"lation with res!ect to val"es &) !eo!le var# from c"lt"re to c"lt"re in five val"e categories Answer: & E !lanation: &) Aofstede/s landmark st"d# showed that different c"lt"res varied widel# in val"es that Aofstede termed cultural dimensions. This eliminates the choice regarding !eo!le being largel# the same c"lt"re to c"lt"re as a correct res!onse0 since views varied widel#. Aofstede did not indicate an# great difference in the views of managers vers"s em!lo#ees or ;6% em!lo#ees vers"s the general !o!"lation. &iff: ( 'age Ref: 1< AA5.6: &iversit# *b+ective: (.( 8)) DDDDDDDD is a c"lt"ral dimension meas"red b# Aofstede in which !eo!le identif# strongl# with a gro"! within a societ#. A) 'ower distance 6) 5ollectivism 5) ;ndivid"alism &) Uncertaint# avoidance Answer: 6 E !lanation: 6) Aofstede meas"red individ"alism and collectivism on the same scale. ;ndivid"alism meas"red how inde!endent !eo!le considered themselves0 while collectivism meas"red how strongl# the# identified with a gro"!. The more individ"alistic a !erson was0 the less collectivist he or she tended to be. The dimensions of !ower distance and "ncertaint# avoidance are not meas"res of the strength of a !erson/s identification with a gro"! so neither is a correct res!onse. &iff: 1 'age Ref: 1< AA5.6: &iversit# *b+ective: (.(
<0) $hich of the following wo"ld be likel# to be tr"e in a co"ntr# with a high !ower distanceE A) A"ndreds of stat"es0 billboards0 and !osters of the leader wo"ld a!!ear all over the ca!ital. 6) The leader/s likeness wo"ld a!!ear onl# in the news!a!er from time to time. 5) To! managers and em!lo#ees wo"ld dress in similar wa#s. &) Rather than em!lo# a driver0 to! managers wo"ld drive their own cars to work. Answer: A E !lanation: A) A co"ntr# with high !ower distance wo"ld tolerate leaders to have enormo"s amo"nts of !ower and !restige. That corres!onds to the choice regarding a leader who !lasters his image all over the cit#. The other three choices describe a more h"mble leader and a sit"ation of low !ower distance. The image of an all@!owerf"l leader describes a sit"ation of high !ower distance. &iff: 1 'age Ref: 1< AA5.6: &iversit# *b+ective: (.( <1) A co"ntr# with a high "ncertaint# avoidance DDDDDDDD. A) is highl# str"ct"red and de!ends on r"les and social instit"tions to co!e with "ncertaint# 6) is highl# str"ct"red and does not de!end on r"les and social instit"tions to co!e with "ncertaint# 5) has no r"les &) has no str"ct"re or social instit"tions Answer: A E !lanation: A) Uncertaint# avoidance is the degree to which a societ# is str"ct"red0 de!ends on r"les0 and looks to its social instit"tions to deal with "ncertaint#. 5o"ntries with high "ncertaint# avoidance are not comfortable with "nstr"ct"red sit"ations0 so the# tend to follow r"les rather than have a fle ible !oint of view when faced with "ncertaint#. ;ndia0 for e am!le0 has a high "ncertaint# avoidance rating0 so it tends to avoid making to"gh decisions and relies on r"les in "nstr"ct"red sit"ations. The correct choice describes a r"le@following societ# with high "ncertaint# avoidance. >one of the other choices describe a societ# that de!ends on r"les or social instit"tions0 so all of those choices describe co"ntries with low "ncertaint# avoidance. &iff: 1 'age Ref: 1<@14 AA5.6: &iversit# *b+ective: (.(
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<() ;n a co"ntr# with a low "ncertaint# avoidance0 !eo!le co!e with "ncertaint# DDDDDDDD. A) b# following r"les and de!ending on social instit"tions 6) b# making new r"les 5) largel# witho"t r"les or strong social instit"tions &) b# looking to the religio"s teachings Answer: 5 E !lanation: 5) -ow "ncertaint# avoidance identifies a societ# that doesn/t de!end on r"les or social instit"tions s"ch as religion to co!e with "ncertaint#. ;n co"ntries that have a low "ncertaint# avoidance rating0 !eo!le don/t sh# awa# from "ncertain sit"ations as m"ch as high "ncertaint# avoidance c"lt"res do0 and the# tr# to be creative and fle ible in facing "ncertaint#0 rather than rel#ing on r"les. The correct choice describes a societ# with low "ncertaint# avoidance0 where !eo!le don/t im!ose a lot of r"les or restrictions on themselves. The other choices all describe c"lt"res with high rather than low "ncertaint# avoidance. &iff: 1 'age Ref: 1<@14 AA5.6: &iversit# *b+ective: (.( <1) .ocieties with a high assertiveness rating wo"ld tend to be DDDDDDDD. A) !assive 6) e cessivel# !olite 5) com!etitive &) "ncertain Answer: 5 E !lanation: 5) Assertiveness is a meas"re of how to"gh0 aggressive0 and com!etitive a societ# is. This indicates that com!etitive is the correct res!onse. 'assive0 e cessivel# !olite0 and "ncertain are all traits that are the o!!osite of assertive. &iff: ( 'age Ref: 1<@14 AA5.6: &iversit# *b+ective: (.( <3) ;n a societ# with high DDDDDDDD0 #o" wo"ld e !ect members of a cor!oration to have a strong identification with the cor!oration. A) gender differentiation 6) f"t"re orientation 5) in@gro"! collectivism &) h"mane orientation Answer: 5 E !lanation: 5) 'eo!le who strongl# identif# with a cor!oration are dis!la#ing in@gro"! collectivism b# taking !ride in the gro"! the# belong to. ;dentif#ing with a gro"! is not related to gender role differences0 how enth"siasticall# a societ# !lans for the f"t"re0 or how fair and altr"istic a societ# as!ires to be. Accordingl#0 in@gro"! collectivism is the correct res!onse. &iff: ( 'age Ref: 1= AA5.6: &iversit# *b+ective: (.(
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<8) DDDDDDDD is an attrib"te that describes how materialistic a societ# is. A) 'ower distance 6) K"alit# of life 5) K"antit# of life &) ;ndivid"alism Answer: 5 E !lanation: 5) K"antit# of life and 9"alit# of life contrast how materialistic a societ# is as o!!osed to how caring and non@materialistic it is. 'ower distance has nothing to do with how materialistic !eo!le are0 b"t rather how m"ch the# tolerate societal !ower imbalances. ;ndivid"alism describes how inde!endent members of a societ# are0 not how materialistic the# are. &iff: ( 'age Ref: 1< AA5.6: &iversit# *b+ective: (.( <<) $hich feat"re of Aofstede/s st"d# lends it a great deal of validit#E A) ;t meas"red attit"des of ;6% em!lo#ees. 6) ;t meas"red attit"des of man# s"ccessf"l !eo!le. 5) The s"rve# was carried o"t in the 1)=0s. &) ;t s"rve#ed 11<0000 !eo!le. Answer: & E !lanation: &) The most com!elling !art of Aofstede/s st"d# was the enormo"s si2e of his sam!le. ;n general0 the greater the sam!le si2e a statistical st"d# has0 the more confidence its inter!reters have in its findings. ;n fact0 being limited to ;6% em!lo#ees diminishes the st"d#/s credibilit# somewhat0 as a more diverse gro"! of !eo!le !robabl# wo"ld have !rovided a more re!resentative sam!ling. The fact that the st"d# 9"eried s"ccessf"l !eo!le and it took !lace in the 1)=0s lends it no e tra credibilit#. &iff: ( 'age Ref: 1< AA5.6: Anal#tic .kills *b+ective: (.( <=) $hich of the following dimensions from the 7-*6E framework has no e9"ivalent co"nter!art in Aofstede/s frameworkE A) gender differentiation 6) h"mane orientation 5) f"t"re orientation &) individ"alismLcollectivism Answer: A E !lanation: A) A"mane orientation ro"ghl# corres!onds to Aofstede/s 9"alit# of life categor#. ,"t"re orientation corres!onds to Aofstede/s long@term vers"s short@term orientation. ;ndivid"alismLcollectivism is virt"all# identical to Aofstede/s individ"alism vers"s collectivism categor#. *nl# gender differentiation has no co"nter!art in the Aofstede st"d#0 so it is the correct res!onse. &iff: ( 'age Ref: 1<@14 AA5.6: Anal#tic .kills *b+ective: (.(
<4) $hich im!lication best s"mmari2es the meaning of the 9"ote belowE ?...ethics...is essential to o"r s"rvival as a wealth@creating nation.? A) 6eing ethical is bad for b"siness. 6) 6eing ethical has no im!act on b"siness. 5) 6eing ethical in the long r"n is good for b"siness. &) 6eing ethical in the long r"n is more im!ortant than making a !rofit. Answer: 5 E !lanation: 5) The 9"ote im!lies that ethics not onl# do not decrease !rofits0 in the long r"n the# create wealth. The choices regarding ethics being bad for and having no im!act on b"siness are not consistent with the 9"otation. ,inall#0 the choice regarding ethics being more im!ortant than making a !rofit ma# be tr"e0 b"t it is far be#ond what the 9"ote intends to claim. &iff: ( 'age Ref: 14 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.( <)) The cases of Enron and 6ernard %adoff go be#ond a 9"estion of ethics beca"se in both cases DDDDDDDD. A) laws were clearl# broken 6) man# !eo!le were h"rt 5) billions of dollars were involved &) no harm was intended and the# had good reasons for what the# did Answer: A E !lanation: A) The line between ethics and crime is crossed when laws are broken. This is clearl# what ha!!ened in the Enron and the %adoff casesGin both sit"ations individ"als committed crimes and ended "! going to !rison for those crimes. The fact that billions of dollars were involved0 man# !eo!le lost their life savings0 and the !er!etrators ma# have claimed to have e c"ses for what the# did does not change the fact that !eo!le behaved both "nethicall# and illegall# in both cases. &iff: ( 'age Ref: 14 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 =0) $hich of the following wo"ld >*T be an e am!le of green managementE A) a com!an# "sing wind energ# for electricit# 6) a com!an# "sing re"sable rather than dis!osable containers 5) a com!an# shi!!ing in e !ensive all@nat"ral fr"its for em!lo#ees all #ear ro"nd &) a com!an# rewarding workers to car!ool Answer: 5 E !lanation: 5) Using renewable wind energ#0 re"sable containers0 and enco"raging car!ooling are clearl# ?green? actions beca"se the# conserve energ# or red"ce waste. ;m!orting fr"its0 while !erha!s health# for em!lo#ees0 !res"mabl# entails b"rning a large amo"nt of fossil f"els to trans!ort the fr"its long distances and so wo"ld not 9"alif# as green. &iff: ( 'age Ref: 14 AA5.6: Technolog# *b+ective: (.1
1) 5o!#right : (011 'earson Ed"cation0 ;nc
=1) The classical view of social res!onsibilit# is that a for@!rofit organi2ation/s res!onsibilit# is DDDDDDDD. A) to hel! as man# !eo!le as !ossible 6) to ma imi2e both !rofits and the general welfare 5) to ma imi2e !rofits onl# &) to ma imi2e o!!ort"nit# for all Answer: 5 E !lanation: 5) The classical view of social res!onsibilit# is a !"rel# economic view that looks at !rofits onl#. A for@!rofit com!an# e ists to make mone#. Therefore its onl# res!onsibilit# is to ma imi2e !rofits. An# actions for social good0 s"ch as to hel! !eo!le0 create o!!ort"nit#0 or to im!rove the general welfare wo"ld be looked "!on as irres!onsible beca"se these actions wo"ld divert the organi2ation from its stated goal. &iff: ( 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 =() A com!an# that meets its social obligation DDDDDDDD. A) f"lfills its economic res!onsibilities onl# 6) f"lfills its legal and economic res!onsibilities onl# 5) goes be#ond its legal and economic res!onsibilities and res!onds to some !ressing social need &) does not need to obe# local laws Answer: 6 E !lanation: 6) An organi2ation/s social obligation incl"des following legal and economic res!onsibilities onl#. An#thing above that0 s"ch as res!onding to a !ressing social need0 is be#ond the organi2ation/s social res!onsibilit#. All com!anies in general m"st follow laws and meet economic res!onsibilities to !ros!er and s"rvive0 b"t these items alone do not f"lfill social obligation re9"irements. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 =1) $hich of the following is the best e am!le of a com!an# being sociall# res!onsiveE A) meeting ha2ardo"s materials standards 6) giving 5hristmas bon"ses to worth# em!lo#ees 5) dis!la#ing ?think green? !osters &) b"ilding a comm"nit# da#@care center Answer: & E !lanation: &) .ocial res!onsiveness re9"ires that an organi2ation res!ond to some social need that has been identified within the comm"nit#. *f the choices listed0 onl# b"ilding a da#@care center meets this re9"irement so it is the correct res!onse. %eeting ha2ardo"s materials standards is sim!l# an e am!le of following the law. 5hristmas bon"ses ma# be genero"s0 b"t the# are hel!ing members of the organi2ation0 not the comm"nit# at large. ?Think green? !osters ma# hel! !eo!le take action on environmental matters0 b"t the !osters themselves do not constit"te effective actions that res!ond to a social need. &iff: 1 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
(0 5o!#right : (011 'earson Ed"cation0 ;nc
=3) The classical view of social res!onsibilit# holds that s!ending time0 mone#0 labor0 or energ# to im!rove societ#/s welfare wo"ld DDDDDDDD. A) de!rive stockholders of reso"rces that co"ld be "sed to generate !rofits 6) not have an# !ositive or negative im!act on stockholders 5) hel! ma imi2e !rofits for stockholders &) show stockholders that the com!an# knows best Answer: A E !lanation: A) The classical view of social res!onsibilit# holds that an# "se of reso"rces that does not e !licitl# seek to increase !rofits is wastef"l and de!rives stockholders of the income that wo"ld otherwise be theirs. This means that s!ending on social welfare has a negative im!act on !rofits0 th"s r"ling o"t the choices regarding not having an# im!act on stockholders and ma imi2ing !rofits for stockholders as correct res!onses. The idea that the com!an# knows better than stockholders is not !art of the classical view of social res!onsibilit#. &iff: ( 'age Ref: 1)@30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 =8) The socioeconomic view of social res!onsibilit# states that a b"siness DDDDDDDD. A) is an economic agent onl# 6) has no res!onsibilit# 5) is a moral agent &) is a harmf"l agent Answer: 5 E !lanation: 5) A socioeconomic view of social res!onsibilit# sees b"sinesses not +"st as economic entities witho"t moral res!onsibilities. .ince a b"siness e ists within a s!here that is both economic and moral0 a b"siness sho"ld be considered to be both an economic and a moral agent. This eliminates economic agent and harmf"l agent as the correct res!onse and identifies moral agent as the correct res!onse. >ote that as a moral agent0 a b"siness defines itself as a force for good or bad b# its actions. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 =<) The socioeconomic view is that management/s social res!onsibilit# goes be#ond making !rofits to incl"de DDDDDDDD. A) challenging norms within societ# and inciting !eo!le to rise "! against in+"stice 6) !rotecting and im!roving societ#/s welfare 5) sacrificing its own welfare to advance the ca"se of +"stice &) !rosec"ting those who break the law Answer: 6 E !lanation: 6) The socioeconomic view sees organi2ations as moral citi2ens of the societ# with a moral role to !la#. The view goes onl# as far as an organi2ation looking after the general welfare of societ# as best it can in wa#s that are reasonable and not overl# onero"s. ;t does not s"ggest that organi2ations take on a revol"tionar# role0 !rosec"te law@breakers0 or harm themselves in an# wa# to fight in+"stice. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
==) 'ro!onents of the socioeconomic view of social res!onsibilit# believe that being sociall# res!onsive is DDDDDDDD. A) good for b"siness 6) bad for b"siness 5) neither good nor bad for b"siness &) bad for an# b"siness in a com!etitive market Answer: A E !lanation: A) ."!!orters of the socioeconomic view think that being sociall# res!onsive gives an organi2ation a !ositive !"blic image that in the long r"n !a#s for itself in c"stomer lo#alt# and !rofits. 6eing good for b"siness r"les o"t the choices regarding being bad for b"siness and neither good nor bad for b"siness as correct choices. 'ositing that social res!onsibilit# is harmf"l onl# in com!etitive markets is beside the !oint since almost all b"sinesses o!erate within com!etitive markets. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 =4) DDDDDDDD dictates that being sociall# res!onsible is the ?right thing to do.? A) A !"blic image 6) An ethical obligation 5) A !"blic e !ectation &) A dil"tion of !"r!ose Answer: 6 E !lanation: 6) A !"blic image identifies the favorable !"blicit# that an organi2ation can get from being sociall# res!onsible0 b"t it does not identif# sociall# res!onsible behavior as the right thing to do. .imilarl#0 !"blic e !ectation reflects the modern attit"de of !eo!le toward organi2ations0 not a mandate of what m"st be done. A dil"tion of !"r!ose is act"all# an arg"ment against being sociall# res!onsible0 so it is not a correct choice here. An ethical obligation is the correct res!onse beca"se it does re9"ire that individ"als or organi2ations do the ?right thing.? &iff: ( 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 =)) ."!!orters of social res!onsibilit# claim that being sociall# res!onsible DDDDDDDD. A) increases short@term !rofits 6) decreases long@term !rofits 5) increases long@term !rofits &) decreases short@term !rofits Answer: 5 E !lanation: 5) ."!!orters claim that being sociall# res!onsible is good for b"siness0 b"ilds c"stomer lo#alt#0 and over the long r"n increases !rofits. ."!!orters make no claims for short@ term !rofits0 th"s eliminating increases and decreases in short@term !rofits. &ecreases long@term !rofits is incorrect beca"se it states the o!!osite of the act"al claim that s"!!orters of being sociall# res!onsible make. &iff: ( 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
(( 5o!#right : (011 'earson Ed"cation0 ;nc
40) ."!!orters of sociall# res!onsible b"sinesses claim that b# becoming sociall# res!onsible0 b"sinesses can e !ect DDDDDDDD. A) less government reg"lation 6) more government reg"lation 5) more strict enforcement of laws &) more government interference Answer: A E !lanation: A) The case that s"!!orters make is that the more sociall# res!onsible com!anies are0 the more government will tr"st them to do the right thing and the less government will see the need to intervene with reg"lations. This eliminates more government reg"lation and interference as correct choices beca"se the# both increase rather than decrease the amo"nt of government intervention. ;t also militates against more strict enforcement of laws which can be tho"ght of as an indirect form of government interference. &iff: ( 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 41) .ince b"sinesses have more !ower and reso"rces than ordinar# individ"als0 s"!!orters of social res!onsibilit# claim that b"sinesses have DDDDDDDD. A) a good reason to ignore the needs of ordinar# individ"als 6) no reason to act in a sociall# res!onsible wa# 5) more reason to act in a sociall# res!onsible wa# &) less reason to act in a sociall# res!onsible wa# Answer: 5 E !lanation: 5) The ver# si2e and infl"ence of b"sinesses re9"ire them to do more than ordinar# individ"als to advance the !"blic welfare0 s"!!orters of social res!onsibilit# arg"e. .ince societ# allows the organi2ation to have its !rivileged !osition of !ower and infl"ence0 the organi2ation owes societ# a larger debt than an# individ"al citi2en. These ideas make ?more reason to act in a sociall# res!onsible wa#? the correct res!onse0 and r"le o"t the other choices0 all of which claim to diminish0 rather than increase0 the moral obligation of a b"siness. &iff: ( 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 4() The arg"ment against social res!onsibilit# that states that !"rs"ing goals other than making !rofits diverts a com!an# awa# from its !rimar# goal of making !rofits is known as DDDDDDDD. A) !ossession of reso"rces 6) too m"ch !ower 5) lack of skills &) dil"tion of !"r!ose Answer: & E !lanation: &) $hen a com!an# whose !rimar# goal is to make !rofits "ses its reso"rces for an#thing other than making !rofits0 it is said to be dil"ting its !"r!ose. Too m"ch !ower refers to a com!an# ac9"iring an "nfair overs"!!l# of !ower from being sociall# res!onsible while lack of skills makes the arg"ment that managers are not com!etent to tackle social iss"es. ,inall#0 !ossession of reso"rces is an arg"ment for0 not against0 social res!onsibilit#. &iff: ( 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
41) *ne !rominent arg"ment against being sociall# res!onsible makes the claim that b"siness managers are DDDDDDDD to address social concerns. A) too im!ractical 6) not com!etent 5) too wealth# &) too o"t of to"ch Answer: 6 E !lanation: 6) >o one makes the claim that b"siness leaders are too im!ractical or too o"t of to"ch to be sociall# res!onsible0 tho"gh the ideas ma# have a small meas"re of validit#. .imilarl#0 wealth# b"siness leaders wo"ld in no wa# be !revented from addressing social concerns and in fact0 according to the idea of noblesse oblige0 wealth might be a good reason to act in a sociall# res!onsible wa#. That leaves the choice on not being com!etent that states that man# !eo!le think that b"siness leaders0 not having training in social areas0 are not 9"alified to tr# to hel! in these areas as the correct res!onse. &iff: ( 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 43) Those arg"ing against being sociall# res!onsible might make the claim that costs for social goals are "ltimatel# DDDDDDDD. A) !aid for b# the !eo!le being hel!ed 6) !aid for b# com!anies in the form of ta breaks 5) !aid for b# cons"mers in the form of higher !rices &) are never !aid b# an#one Answer: 5 E !lanation: 5) There is no evidence that the cost of social goals gets !aid for b# the !eo!le who benefit from the services !rovided0 so that is not a correct res!onse. Ta breaks wo"ld be an e tra cost0 not a wa# to !a# for social goals0 so that wo"ld r"le o"t the choice regarding ta breaks. The choice regarding never being !aid b# an#one is incorrect beca"se all costs are !res"med to be "ltimatel# !aid b# someone. 'aid for b# cons"mers in the form of higher !rices is the correct res!onse0 since com!anies ma# initiall# bear the costs of social goals0 b"t as the# see their costs rising the# are likel# to raise !rices0 effectivel# ca"sing cons"mers to "ltimatel# be the !a#ers of the bill. &iff: 1 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
48) $hich of the following is >*T an arg"ment against the idea that com!anies sho"ld be sociall# res!onsibleE A) costs 6) too m"ch !ower 5) violation of !rofit ma imi2ation &) !"blic e !ectations Answer: & E !lanation: &) 5osts0 too m"ch !ower0 and violation of !rofit ma imi2ation are all legitimate arg"ments against com!anies being sociall# res!onsible. 5osts indicate that sociall# res!onsible actions do not cover their own costs and so end "! costing a com!an# mone#. Too m"ch !ower indicates that com!anies will acc"m"late an overab"ndance of !ower as a res"lt of !"rs"ing social goals0 thereb# increasing their alread# too@large social infl"ence. Miolation of !rofit ma imi2ation indicates that !"rs"ing social goals violates a com!an#/s obligation to seek the highest !rofits !ossible. *nl# !"blic e !ectations is an arg"ment for social res!onsibilit#Git claims that !"blic o!inion strongl# s"!!orts social goals0 so com!anies benefit from !ositive !"blicit# when the# !"rs"e them. &iff: 1 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 4<) ?-ack of acco"ntabilit#? arg"es against a firm being sociall# res!onsible b# sa#ing that once actions are taken there is no one DDDDDDDD. A) to take res!onsibilit# if things go wrong 6) to take credit if things work o"t well 5) to s!eak to the media to !"t a s!in on actions taken &) to follow "! afterward Answer: A E !lanation: A) Acco"ntabilit# is taking res!onsibilit# for actions. That means that taking res!onsibilit# if things go wrong is the correct res!onse beca"se com!anies that !"rs"e social goals t#!icall# have no mechanism in !lace to deal with !roblems that arise d"e to actions on behalf of social goals. There wo"ld also be no s!ecific !erson to take credit for s"ccessf"l actions0 to follow "! on actions0 or to ?s!in? the actions. Aowever0 onl# the correct choice constit"tes an arg"ment against social res!onsibilit#. &iff: ( 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
4=) $hen a com!an# does the minim"m that the law re9"ires0 it is meeting its DDDDDDDD. A) social res!onsiveness goal 6) economic res!onsibilit# 5) ethical res!onsibilit# &) social obligation Answer: & E !lanation: &) .ocial res!onsiveness goes be#ond the minim"m that the law re9"ires and entails res!onding to some !o!"lar social need. An ethical res!onsibilit# also goes be#ond a minimal legal stance0 re9"iring a com!an# not onl# to obe# all laws b"t also to behave in a wa# that is fair and +"st. An economic res!onsibilit# re9"ires the firm to !"rs"e financial goals onl#. That leaves a social obligation0 which ma# incl"de onl# what is legall# necessar# as the minim"m that a com!an# m"st do. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 44) A factor# that has adhered to all !oll"tion control standards has DDDDDDDD. A) been sociall# res!onsive 6) been economicall# res!onsible 5) been ethical &) met its social obligation Answer: & E !lanation: &) .ocial res!onsiveness wo"ld re9"ire the factor# to do more than sim!l# follow the lawJ it wo"ld need to res!ond to some societal need as well. Economic res!onsiveness wo"ld re9"ire the factor# to meet its goals with res!ect to financial considerations. There is no wa# of knowing whether meeting !oll"tion controls wo"ld accom!lish this. .imilarl#0 meeting !oll"tion standards does not g"arantee a factor# has behaved ethicall#. %eeting those standards does0 however0 show that the factor#/s social obligation has been met. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 4)) .ocial res!onsiveness refers to the ca!acit# of a firm to DDDDDDDD. A) address some !ressing !"blic need 6) follow all government reg"lations 5) differentiate between right and wrong &) be a role model for other organi2ations Answer: A E !lanation: A) .ocial res!onsiveness m"st address some !"blic need0 s"ch as im!roving the environment or hel!ing !eo!le who lack the basic necessities of life. %erel# following government reg"lations0 behaving ethicall#0 or acting as a model for other organi2ations does not address a !"blic need0 so none of these choices is correct. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
(< 5o!#right : (011 'earson Ed"cation0 ;nc
)0) $hen a firm advertises that it onl# "ses rec#cled !a!er !rod"cts0 it is DDDDDDDD. A) meeting its social obligation 6) being c#nical 5) being sociall# res!onsive &) !a#ing attention to the bottom line Answer: 5 E !lanation: 5) ;n "sing rec#cled !a!er !rod"cts0 the firm is meeting a societal need of red"cing the amo"nt of waste in the environment0 so it 9"alifies as social res!onsiveness. A social obligation does onl# what the law re9"ires0 so "nless there are laws re9"iring mandator# rec#cling0 this act goes be#ond what the law re9"ires and does not 9"alif# as social res!onsiveness. Rec#cling ma# not im!rove a com!an#/s bottom line0 so rec#cling cannot be classified as !a#ing attention to the bottom line. .imilarl#0 tho"gh rec#cling can be done !"rel# to im!rove a com!an#/s !"blic image0 there is no wa# of !roving that the act has even a small element of c#nicism. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 )1) $hich of the following is a basic definition of ethicsE A) r"les that define good and evil 6) laws that define legal and illegal 5) !rinci!les that define right and wrong &) !rinci!les that define standards of decenc# Answer: 5 E !lanation: 5) Ethics is concerned with the eval"ation of actionsGwhether the# are right or wrongGrather than the conditions of good and evil that often "nderlie those actions. This indicates that ?!rinci!les that define right and wrong? is the correct choice for this 9"estion and ?r"les that define good and evil? is incorrect. K"estions of whether acts are legal or illegal are also related to ethics0 b"t legal and illegal refer to formal written laws covering a wide arra# of iss"es while ethics generall# refers to more basic moral !rinci!les that alwa#s foc"s on right and wrong. .tandards of decenc# are also related to ethics0 b"t the# are more concerned with what is sociall# acce!table rather than what is right and wrong. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
(= 5o!#right : (011 'earson Ed"cation0 ;nc
)() A DDDDDDDD is a formal doc"ment that states an organi2ation/s !rimar# val"es and the ethical r"les it e !ects its em!lo#ees to follow. A) mission statement 6) statement of !"r!ose 5) code of ethics &) vision statement Answer: 5 E !lanation: 5) Aow ethical 9"estions are addressed within an organi2ation can be different from how the# are dealt with in the o"tside world. ,or e am!le0 fraterni2ation between individ"als inside an organi2ation Fe.g.0 teacher and st"dent in a school) ma# be frowned "!on even tho"gh the same relationshi! o"tside the organi2ation might not raise an# ethical e#ebrows Fe.g.0 both teacher and st"dent are ad"lts). That is wh# most organi2ations draft a written code of ethics to !rovide g"idance for members. >one of the other choices a mission statement0 a statement of !"r!ose0 or a vision statementdeals with ethical iss"es0 so these choices are incorrect. &iff: 1 'age Ref: 31 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 )1) Abo"t DDDDDDDD of organi2ations of 100000 or more em!lo#ees have a written code of ethics. A) one@third 6) half 5) =0 !ercent &) )= !ercent Answer: & E !lanation: &) The fact that )= !ercent of large organi2ations have written codes of ethics s"ggests that these codes are at least "sef"l0 if not highl# effective. Aowever0 ethics codes are "s"all# onl# as effective as the organi2ational c"lt"re in which the# are instit"ted. Those organi2ations that take ethics serio"sl# "s"all# have fewer !roblems dealing with ethics0 regardless of how !rominent their code is in their ever#da# o!erations. ;n most cases0 written codes of ethics are not referred to in ever#da# interactions0 b"t instead "sed to !rovide g"idance in resolving conflicts and other moral iss"es. &iff: 1 'age Ref: 31 *b+ective: (.1
)3) ;n most cases0 organi2ations that have managers who behave ethicall# tend to have DDDDDDDD. A) more !rod"ctive em!lo#ees 6) more ethical em!lo#ees 5) less ethical em!lo#ees &) em!lo#ees who are no more or less ethical than average Answer: 6 E !lanation: 6) 6eing a good role model with res!ect to ethics does affect ethics of s"bordinates. %anagers who behave "nethicall# or who tolerate "nethical behavior tend to !romote similar attit"des among s"bordinates. That is wh# ?more ethical em!lo#ees? is correctG ethical managers tend to have ethical workersGand wh# ?more !rod"ctive em!lo#ees? and ?em!lo#ees who are no more or less ethical than average? are not correct. There is no established or doc"mented relationshi! between ethical behavior and !rod"ctivit#0 so ?more !rod"ctive em!lo#ees? is incorrect. &iff: ( 'age Ref: 31 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 )8) AFn) DDDDDDDD view of ethics states that more !rod"ctive workers sho"ld get more !a#0 and less !rod"ctive workers less !a#0 regardless of other circ"mstances. A) rights 6) "tilitarian 5) theor# of +"stice &) individ"al liberties Answer: 6 E !lanation: 6) A rights view of ethics is concerned with !rotecting the rights of individ"als to en+o# individ"al liberties s"ch as free s!eech and d"e !rocess0 so both rights and individ"al liberties are not correct res!onses for this 9"estion. A theor# of +"stice view of ethics is concerned with iss"es like a living wageGem!lo#ees are entitled to be !aid eno"gh to live on no matter what the law sa#s or other circ"mstances dictate. The theor# of +"stice view stands in direct contradiction to the "tilitarian view0 the correct res!onse here0 that states that !rod"ctivit# is all that matters with regard to !a#0 and that abstract ideas s"ch as +"stice or fairness sho"ld not be considered for this iss"e. &iff: ( 'age Ref: 31 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
() 5o!#right : (011 'earson Ed"cation0 ;nc
)<) A manager who s"bscribes to the theor# of +"stice view of ethics might !a# low@level em!lo#ees DDDDDDDD. A) the minim"m wage 6) more than the minim"m wage 5) less than the minim"m wage &) according to how !rod"ctive the# were Answer: 6 E !lanation: 6) A manager who s"bscribes to the theor# of +"stice view of ethics takes societal conditions into acco"nt when making decisions. ;f a worker is "nable to live on minim"m wage0 this manager is likel# to !a# more than that amo"nt to ens"re that she is treating her em!lo#ees in a fair and +"st wa#. This r"les o"t the minim"m wage and less than the minim"m wage. ;t also r"les o"t ?according to how !rod"ctive the# were0? which corres!onds to a "tilitarian view of ethics0 rewarding workers onl# in !ro!ortion to how val"able the# are to the organi2ation. &iff: ( 'age Ref: 31 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 )=) $hich of the following is a categor# of workforce diversit#E A) ed"cation level 6) com!"ter skills 5) st#le of dress &) age Answer: & E !lanation: &) $orkforce diversit# incl"des onl# !ermanent or innate feat"res s"ch as age0 race0 ethnicit#0 gender0 !h#sical abilitiesLdisabilities0 and se "al orientation. An# characteristic that arises o"t of achievement0 s"ch as ed"cation level or com!"ter skills0 does not constit"te a diversit# categor#. An# wholl# vol"ntar# characteristic0 s"ch as the wa# a !erson dresses0 sho"ld also not be considered a diversit# categor#. The above indicates that onl# age re!resents a diversit# categor# so it is the correct res!onse. &iff: ( 'age Ref: 3( AA5.6: &iversit# *b+ective: (.3 )4) %anagers have fo"nd that the best a!!roach to diversit# is DDDDDDDD. A) the ?melting !ot? a!!roach that allows workers to assimilate nat"rall# 6) to allow workers to maintain their differences if that is what the# !refer. 5) to com!el workers to assimilate "sing rewards and !"nishments &) to enforce differences even among workers who wish to assimilate Answer: 6 E !lanation: 6) %anagers !revio"sl# tho"ght that the melting !ot a!!roach worked best0 b"t recentl# the# have recogni2ed that some workers have no desire to assimilate. This re9"ires managers to be fle ible and ado!t an a!!roach which allows workers to resist assimilation and maintain their differences if the# choose to do so. There is no evidence to show that strategies that com!el workers to assimilate or maintain differences can be s"ccessf"l0 so these choices are incorrect. &iff: ( 'age Ref: 3( AA5.6: &iversit# *b+ective: (.3
))) 5hanges in the workforce since the 1)<0s are largel# d"e to DDDDDDDD. A) women !ost!oning having babies 6) federal anti@discrimination legislation 5) migration within the United .tates &) a booming econom# Answer: 6 E !lanation: 6) ,ederal legislation is the most im!ortant ca"se of change in the workforce over the !ast decades. Anti@discrimination laws o!ened "! +obs to women and minorities in "n!recedented n"mbers since the 1)<0s. $omen having babies later in life is !robabl# as m"ch a res"lt of this change as it is a ca"se. %igration within the United .tates and a booming econom# might also have had some effect on the workforce0 b"t the im!act of these factors is dwarfed b# the change in laws. &iff: ( 'age Ref: 31 AA5.6: &iversit# *b+ective: (.3 100) $orkforce diversit# will be significantl# affected in the ne t decade b# DDDDDDDD. A) increases in the teen worker !o!"lation 6) the aging of the U... !o!"lation 5) increases in the U... divorce rate &) increases in U... birthrates Answer: 6 E !lanation: 6) The bab# boom generation is a larger cohort in the !o!"lation than an# other generation0 so its aging will have the greatest im!act on the workforce as bab#@boomers retire or move on to different kinds of +obs. 6ab#@boomer aging as a factor of workforce change is m"ch more im!ortant than changes in birthrate0 divorce rate0 or teen workers. &iff: 1 'age Ref: 31 AA5.6: &iversit# *b+ective: (.3 101) ;n global com!anies0 a ma+or ca"se of the line between work and nonwork getting bl"rred is DDDDDDDD. A) em!lo#ees needing to comm"te long distances 6) needing to comm"nicate with overseas o!erations in different time 2ones 5) needing to comm"nicate on a face@to@face basis with em!lo#ees &) em!lo#ees needing to work on holida#s Answer: 6 E !lanation: 6) ;n a global com!an# a factor# can be in a time 2one that is 1( ho"rs different than one/s home time 2one. This means that a manager ma# need to address a !roblem at 11 '% in her time 2one that is occ"rring at 11 A% in the factor#. >eeding to comm"nicate with overseas o!erations in different time 2ones0 therefore0 is the correct answer. >eeding to comm"nicate on a face@to@face basis with em!lo#ees is incorrect beca"se face@to@face comm"nication wo"ld tend to avoid off@ho"r interaction and serve to clarif# rather than bl"r the line between work and nonwork. The other two choices are tr"e in some cases0 b"t do not contrib"te to the bl"rring of the line between work and nonwork. &iff: 1 'age Ref: 33 AA5.6: 7lobali2ations *b+ective: (.3
10() DDDDDDDD makeFs) some managers feel that there is no esca!e from iss"es dealing with their work. A) Email0 te t messages0 and cell !hones 6) Ethical obligations 5) Rigid 4@ho"r work da#s &) 6eing a single wage earner Answer: A E !lanation: A) The feeling that there is ?no esca!e? is d"e largel# to comm"nication devices that allow managers and other em!lo#ees to sta# in contact with work iss"es even when the# are not working. Ethical obligations0 the increasingl# scarce workers who work an eight@ho"r da#0 and being a single wage earner do not infringe on workers/ nonwork time0 so these choices are incorrect. &iff: ( 'age Ref: 33 AA5.6: Technolog# *b+ective: (.3 101) $hich of the following is >*T an attem!t b# management to !rovide fle ibilit# in the work!laceE A) bon"s !a# 6) on@site da# care 5) telecomm"ting &) +ob sharing Answer: A E !lanation: A) *n@site da# care0 telecomm"ting0 and +ob sharing all allow workers to control when and where the# work so the# re!resent attem!ts to !rovide fle ibilit#. &a# care !rovides a !lace for children to free "! time for work. Bob sharing allows co"!les to balance !ersonalLfamil# iss"es with work iss"es. Telecomm"ting allows workers to be !rod"ctive at home when famil# iss"es wo"ld otherwise !revent them from working. 6on"s !a# ma# hel! families0 b"t it does not !rovide them with wa#s to control when and where the# work0 so it is the correct res!onse. &iff: ( 'age Ref: 33 *b+ective: (.3 103) 'art@time0 tem!orar#0 and contract workers who are available for hire on an as@needed basis are known as DDDDDDDD. A) cons"ltants 6) core em!lo#ees 5) s"mmer em!lo#ees &) a contingent workforce Answer: & E !lanation: &) The contingent workforce is the segment of the workforce that is not !ermanent. 5ontingent workers ma# work f"ll time0 b"t the# are hired onl# on a !rovisional basis and will likel# leave when their task is com!lete. A cons"ltant is a high@level contingent worker0 b"t the contingent workforce contains other workers besides cons"ltants0 so cons"ltants is not the correct res!onse. .imilarl#0 s"mmer em!lo#ees is incorrect beca"se the contingent workforce is not com!rised onl# of s"mmer workers. 5ore em!lo#ees are !ermanent workers so core em!lo#ees is incorrect. &iff: 1 'age Ref: 33 AA5.6: &iversit# *b+ective: (.3
108) %anagers hire contingent workers beca"se the# are DDDDDDDD than !ermanent workers. A) more lo#al 6) more !rod"ctive 5) more fle ible &) less costl# Answer: & E !lanation: &) Airing contingent workers saves mone# for managers in several wa#s. 5ontingent workers "s"all# don/t get benefits0 aren/t !aid at as high a rate as f"ll@time workers0 and can be dismissed easil# when the !ro+ect the# are working on is com!lete. This makes ?less costl#? the correct res!onse. There is no evidence that contingent workers are more lo#al0 !rod"ctive0 or fle ible than f"ll@time workers Fin fact the# co"ld be less of each categor#) so these res!onses are incorrect. &iff: ( 'age Ref: 33 *b+ective: (.3 10<) %anagers toda# reali2e that long@term s"ccess is largel# achieved b# DDDDDDDD. A) satisf#ing the c"stomer 6) foc"sing on costs 5) hiring highl# ed"cated managers &) foc"sing on goals Answer: A E !lanation: A) 5osts0 well@ed"cated managers0 and goals all ma# be critical !arts of r"nning a b"siness. Aowever0 toda#/s managers see the ke# to s"ccess in making s"re the c"stomer is !leased. A satisfied c"stomer is a c"stomer who will ret"rn to #o"r !lace of b"siness and therefore can make the difference between s"ccess and fail"re in toda#/s b"siness world. &iff: ( 'age Ref: 38 *b+ective: (.8 10=) $hich of the following is >*T tr"e of toda#/s c"stomersE A) The# are more demanding. 6) The# have fewer choices. 5) The# are more ske!tical. &) The# are less e travagant. Answer: 6 E !lanation: 6) 5"stomers toda# are more demanding. The# want better service0 lower !rices0 and higher val"e than ever before. 5"stomers are also more do"btf"l abo"t the claims of merchants. The# are media@savv# and wise to the tactics that b"sinesses "se to sell things. 5"stomers are also thrift#Ghardshi! in toda#/s econom# has made them highl# discriminating b"#ers. *ne thing that is not tr"e abo"t toda#/s c"stomers is that the# have fewer choices. ;f an#thing0 c"stomers have more choicesGincl"ding the vast selection of the ;nternetGand wa#s to choose !rod"cts than ever before. &iff: ( 'age Ref: 38 *b+ective: (.8
104) $h# is a bank teller !osition classified as a service ind"str# +obE A) ;t deals with the financial ind"str#. 6) The teller m"st interact with c"stomers. 5) ;t is not a high@!a#ing +ob. &) The teller m"st be well@trained and inde!endent. Answer: 6 E !lanation: 6) The common thread of all service ind"str# +obs is that the# re9"ire the em!lo#ee to interact e tensivel# with c"stomers. Aow well@trained0 inde!endent0 or well@!aid the em!lo#ee is does not affect how the +ob is classified0 making the choices regarding a high@ !a#ing +ob and the teller being well@trained and inde!endent incorrect. .imilarl#0 financial ind"str# workers can be classified as service workers0 b"t !lent# of other ind"stries also incl"de service workers. $ith regard to the teller interacting with c"stomers0 note that beca"se the# deal with c"stomers0 man# financial cons"ltants 9"alif# as service workers even tho"gh the# are highl# !aid. &iff: ( 'age Ref: 3< *b+ective: (.8 10)) ;m!roved em!lo#ee attit"des DDDDDDDD. A) lead directl# to increased stock !rices 6) im!rove c"stomer attit"des b"t do not lead to increased reven"e 5) lead indirectl# to increased reven"e &) do not im!rove c"stomer attit"des Answer: 5 E !lanation: 5) The !ath from better attit"des to increased reven"e is indirect. 6etter em!lo#ee attit"des have been shown to foster better attit"des toward the com!an# b# c"stomers. ;m!roved c"stomer attit"des lead to greater sales and increased reven"e. The choice regarding im!roving c"stomer attit"des b"t not leading to increased reven"es is incorrect beca"se it doesn/t acknowledge increased reven"e. >ot im!roving c"stomer attit"des is incorrect beca"se c"stomer attit"des have been shown to im!rove as a res"lt of im!roved em!lo#ee attit"des. -eading directl# to increased stock !rices is incorrect beca"se there is no evidence that stock !rices increase as a res"lt of better em!lo#ee attit"des. &iff: ( 'age Ref: 3< *b+ective: (.8 110) A com!an# with a c"stomer@res!onsive c"lt"re looks !rimaril# to hire em!lo#ees who are DDDDDDDD. A) assertive and demanding 6) !assive and introverted 5) st"dio"s and detail@oriented &) friendl#0 o"tgoing0 and good at listening Answer: & E !lanation: &) Em!lo#ees in a c"stomer@res!onsive com!an# m"st be good with !eo!le. Th"s0 being comfortable with !eo!le0 a good listener0 and friendl# are all characteristics that managers look to hire. 6eing assertive0 introverted0 or st"dio"s are not characteristics that fit in well with to!@notch service0 so these choices are incorrect. &iff: ( 'age Ref: 3= *b+ective: (.8
111) Em!owerment might give a c"stomer service em!lo#ee the abilit# to DDDDDDDD. A) ignore c"stomers who clearl# do not intend to !"rchase merchandise 6) show "! to work late several times a week 5) modif# a service !lan for a c"stomer in an "n"s"al wa# &) break r"les that clash with the com!an# code of ethics Answer: 5 E !lanation: 5) Em!owerment allows em!lo#ees to make changes within limits to make s"re that c"stomers are satisfied. This might incl"de modif#ing a service !lan for a c"stomer. ;t wo"ld not incl"de ignoring c"stomers0 no matter how "n!romising the# were0 showing "! late to work0 or ignoring a com!an# code of ethics. &iff: ( 'age Ref: 3= *b+ective: (.8 11() The management theor# of contin"o"s im!rovement foc"ses on 9"alit# where managers in the !ast foc"sed on DDDDDDDD. A) kee!ing !rices "! 6) consistenc# 5) innovation &) !rod"ctivit# Answer: & E !lanation: &) Tho"gh !rod"ct consistenc#0 innovation0 and kee!ing !rices "! were all im!ortant com!onents of s"ccess in management theories of the !ast0 the !rimar# foc"s of these !rograms was on !rod"ctivit#. The road to s"ccess was defined largel# b# a matter of efficienc# Gkee!ing costs down and !rofits "!. 5ontin"o"s im!rovement sees s"ccess in a different0 more long@term wa#0 foc"sing on b"ilding c"stomer satisfaction and c"stomer lo#alt# rather than !rod"ctivit#. &iff: ( 'age Ref: 34 *b+ective: (.8 111) 5ontin"o"s im!rovement !"ts a foc"s on the c"stomer0 who is defined as DDDDDDDD. A) the !"rchaser of the com!an#/s !rod"cts 6) an#one and ever#one who does b"siness with the com!an# 5) onl# those individ"als who s!end a significant amo"nt of mone# on the com!an#/s !rod"cts &) individ"als who b"# the com!an#/s !rod"cts or com!etitor/s !rod"cts Answer: 6 E !lanation: 6) The c"stomer in contin"o"s im!rovement theor# incl"des !eo!le who b"# the com!an#/s !rod"cts directl#0 and also those who do b"siness with the com!an# in other wa#s0 s"ch as s"!!liers and s"bcontractors. This makes ever#one who does b"siness with the com!an# rather than the !"rchaser of the com!an#/s !rod"cts the correct res!onse. The other two choices both give too limited a definition of c"stomer. ;ndivid"als who b"# the com!an#/s or com!etitor/s !rod"cts is incorrect beca"se it fails to incl"de !eo!le who do b"siness with the com!an# witho"t b"#ing its !rimar# !rod"cts0 s"ch as shi!!ers and maintenance !ersonnel. ?*nl# those individ"als who s!end a significant amo"nt? !"ts a +"dgment val"e on c"stomers0 failing to reali2e that circ"mstances change0 and formerl# small0 "nim!ortant c"stomers can later become big0 im!ortant c"stomers. &iff: 1 'age Ref: 3) AA5.6: Anal#tic .kills *b+ective: (.8
113) All of the following are characteristics of contin"o"s im!rovement EN5E'T DDDDDDDD. A) drastic change to im!rove 9"alit# 6) im!rovement in the 9"alit# of ever#thing the organi2ation does 5) acc"rate statistical meas"rement of 9"alit# &) em!owerment of em!lo#ees Answer: A E !lanation: A) 5ontin"o"s im!rovement entails a constant 9"est to kee! im!roving all as!ects of a com!an#/s !erformance. This incl"des highl# acc"rate assessments of !erformance and the em!owerment of em!lo#ees to give them the leewa# to solve !roblems in the best wa# !ossible. 5ontin"o"s im!rovement is strictl# incremental in a!!roach0 so it wo"ld not incl"de an# kind of drastic meas"res0 making the choice regarding drastic change correct. &iff: ( 'age Ref: 3) *b+ective: (.8 118) ;n contrast to contin"o"s im!rovement0 work !rocess engineering refers to DDDDDDDD. A) creating a c"stomer@res!onsive c"lt"re 6) im!lementing s"dden or radical change within an organi2ation 5) im!lementing grad"al or incremental change within an organi2ation &) creating an organi2ation that feat"res kai2en Answer: 6 E !lanation: 6) $ork !rocess engineering in man# wa#s is the o!!osite of contin"o"s im!rovement. 5ontin"o"s im!rovement is grad"al in a!!roach0 r"ling o"t creating an organi2ation that feat"res kai2enGsince the word kaizen denotes a grad"al0 contin"al a!!roach Gand im!lementing grad"al or incremental change. The ke# idea for work !rocess engineering is to make f"ndamental0 rather than grad"al changes to im!rove an organi2ation0 meaning that im!lementing s"dden or radical change is the correct choice here. $ork !rocess engineering ma# be highl# c"stomer@res!onsive0 b"t c"stomer@res!onsiveness does not define the a!!roach. &iff: ( 'age Ref: 80 AA5.6: Anal#tic .kills *b+ective: (.8
6"siness E !ansion 'lan F.cenario) As a b"siness e !ansion director0 .hana/s goal is to sco"t !otential locations for her com!an#/s !lanned e !ansion to other co"ntries. There are man# o!tions0 some of which incl"de maintaining the b"siness/s head office in the United .tates. *ther o!tions send com!an# re!resentatives to foreign o!erations when necessar#0 or establishing se!arate o!eration facilities abroad and hiring locals as managers. 11<) ;f .hana/s com!an# decides to o!en o!erations in ,rance b"t maintain com!an# management in the United .tates0 it wo"ld be considered a DDDDDDDD. A) transnational cor!oration 6) global cor!oration 5) m"ltidomestic cor!oration &) +oint vent"re Answer: 6 E !lanation: 6) %aintaining management in the home office in the United .tates gives .hana/s com!an# the !rofile of a global cor!oration. A global cor!oration is a m"ltinational cor!oration that maintains its management in its home co"ntr#. A m"ltidomestic cor!oration0 on the other hand0 has a central home@co"ntr# management b"t allows local management to r"n the com!an# in its foreign locations. This differs from a borderless or transnational cor!oration which has no ?home co"ntr#? and is instead organi2ed b# ind"str# and f"nction. A +oint vent"re is not a branching o"t of a home cor!oration b"t rather a +oining of the home cor!oration with a foreign cor!oration. &iff: ( 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.( 11=) ;f .hana/s com!an# decides to o!en a new o!eration in 7erman# that has local managers and is r"n locall# b"t still e ists "nder the "mbrella of the home com!an#0 it wo"ld be considered a DDDDDDDD. A) national cor!oration 6) borderless organi2ation 5) trade alliance &) m"ltidomestic cor!oration Answer: & E !lanation: &) Allowing locals to make marketing and management decisions describes a m"ltidomestic cor!oration. A national cor!oration wo"ld have no international com!onent. A trade alliance wo"ld !artner .hana/s com!an# with a foreign com!an#. ;n a borderless organi2ation there wo"ld be no home com!an#. &iff: ( 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.(
114) ;f .hana/s com!an# reorgani2es based on ind"str# gro"!s with no designated home co"ntr#0 the entire organi2ation wo"ld be considered a DDDDDDDD. A) transnational organi2ation 6) strategic alliance 5) m"ltidomestic cor!oration &) global cor!oration Answer: A E !lanation: A) A transnational organi2ation is an integrated organi2ation that has o!erations in different international locations b"t no single home co"ntr# or !rimar# head9"arters. All of the other choices feat"re a home co"ntr# so the# are incorrect. A foreign s"bsidiar# is a fairl# inde!endent o!eration set "! b# the home com!an#. A strategic alliance is a +oining of the home com!an# with a foreign com!an#. A global cor!oration is a m"ltinational that feat"res centrali2ed management located in a home co"ntr#. &iff: ( 'age Ref: 11@13 AA5.6: 7lobali2ations *b+ective: (.( 11)) .hana is considering forming a !artnershi! with a &"tch cor!oration that will create an entirel# new com!an# called Aalf %oon. $hat kind of enter!rise will Aalf %oon beE A) a m"ltidomestic cor!oration 6) a foreign s"bsidiar# 5) a +oint vent"re &) a domestic s"bsidiar# Answer: 5 E !lanation: 5) A !artnershi! that creates an entirel# new com!an# is a s!ecial t#!e of strategic alliance called a +oint vent"re. ;n a foreign or domestic s"bsidiar# and a m"ltidomestic cor!oration0 the original cor!oration maintains control of the branches0 which is not the case with this +oint vent"re. &iff: ( 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.(
.oftware Entre!rene"rial Ment"re F.cenario) Theodore and Bames have formed TB .oft0 an entre!rene"rial vent"re to develo! games and other kinds of software for cons"mers. Their com!an#0 which incl"des TB .oft stores0 is looking for o!!ort"nities in the f"t"re that incl"de international o!erations. 1(0) A foreign com!an# wants to be able to co!# and man"fact"re TB .oft !rograms and sell them in its stores. $hat wo"ld be an a!!ro!riate a!!roach for them to "seE A) licensing 6) franchising 5) renting &) a!!ro!riating Answer: A E !lanation: A) -icensing wo"ld be the best a!!roach for the foreign com!an# to "se. TB .oft wo"ld sell the foreign com!an# the right to be an official vendor of its !rod"cts. Then the com!an# wo"ld be free to feat"re TB .oft !rod"cts in its stores. ,ranchising wo"ld entail creating an entire o!eration rather than sim!l# selling !rod"cts in the com!an#/s stores. >either renting the software or a!!ro!riating it in some wa# are defined management terms that were identified in the te tbook for a sit"ation like this0 and so both are incorrect res!onses. &iff: ( 'age Ref: 18 AA5.6: 7lobali2ations *b+ective: (.( 1(1) A firm in .o"th America wants to o!en a TB .tore in a sho!!ing mall. $hat is the best a!!roach for this firmE A) strategic alliance 6) licensing agreement 5) franchise &) foreign s"bsidiar# Answer: 5 E !lanation: 5) .ince the firm wants more than +"st the right to sell TB .oft !rod"ctsGit wants to r"n an entire TB .oft storeGit sho"ld b"# a franchise. The franchise will give it the right to o!erate a store "nder the TB .oft name selling TB .oft !rod"cts. The relationshi! sho"ld not be a strategic alliance0 since TB .oft wants to maintain control of its brand. A licensing agreement is not e tensive eno"gh since the com!an# wants to do more than sell TB .oft !rod"cts. A foreign s"bsidiar# is also not a!!ro!riate beca"se it re9"ires TB .oft to own the foreign o!eration and this is not !ossible since the firm alread# e ists. &iff: ( 'age Ref: 18 AA5.6: 7lobali2ations *b+ective: (.(
1(() A game com!an# in Thailand wants TB .oft to +oin it and work together to create a new game that bears the brand name of both com!anies. $hat wo"ld be an a!!ro!riate a!!roach for this vent"reE A) global strategic alliance 6) licensing agreement 5) +oint vent"re &) franchise Answer: A E !lanation: A) .ince the game com!an# wants the game to have the name of both com!anies0 the two sho"ld form a global strategic alliance b"t not a +oint vent"re. A +oint vent"re wo"ld re9"ire the two !artners to create a new com!an# to create the gameGsomething that neither !artner wants to do. This !ro+ect is too s#mmetrical to call for a licensing agreement or franchise. 6oth of those o!tions have the !arent com!an# selling the rights to "se its brand0 where in this case each com!an# "ses its own brand e9"all#. &iff: ( 'age Ref: 18 AA5.6: 7lobali2ations *b+ective: (.( A &ifferent Miew F.cenario) Bana has s!ent the last #ear traveling to different o!erations for her com!an#. .he visited factories in %e ico and Thailand0 a finance o!eration in .inga!ore0 a !earl com!an# in Ba!an0 and man# other ven"es. .he now has collected her tho"ghts abo"t the vario"s !laces she visited. 1(1) ;n %e ico and Ba!an Bana noticed that it seemed eas# to convince !eo!le to work together for the good of the gro"!. Aow wo"ld #o" characteri2e this traitE A) collectivist 6) individ"alist 5) h"mane &) assertive Answer: A E !lanation: A) A collectivist im!"lse describes a c"lt"re that has a strong gro"! identit#. 'eo!le in a collectivist c"lt"re often see their social role in the gro"! as more im!ortant than their individ"al distinctions and achievements. 5"lt"res that val"e sing"lar traits are called individ"alistic. 6eing h"maneGkindl#0 em!athetic0 com!assionateGhas nothing to do with gro"! identit# and both collectivist and individ"alist c"lt"res can be characteri2ed as h"mane0 eliminating h"mane as a correct res!onse for this 9"estion. .imilarl#0 being assertiveG confrontational and aggressiveGcan be r"led o"t for this 9"estion beca"se assertiveness has no connection to how m"ch a c"lt"re val"es its gro"! identit#. &iff: ( 'age Ref: 1<@1= AA5.6: &iversit# *b+ective: (.(
1(3) ;n 7reece Bana visited a !harmace"tical o!eration. .he fo"nd that managers there were charming b"t not at all sh#. ;f the# tho"ght the# were right the# tended to be aggressive and confrontational. Aow wo"ld #o" characteri2e this traitE A) high "ncertaint# avoidance 6) assertive 5) f"t"re oriented &) low "ncertaint# avoidance Answer: 6 E !lanation: 6) 6eing aggressive and confrontational describes the trait of being assertive. Aigh "ncertaint# avoidance c"lt"res !"t a lot of confidence in r"les while low "ncertaint# avoidance c"lt"res tend to !refer fle ibilit# over r"les. >either avoidance trait matches the aggressive and confrontational descri!tion here so both can be eliminated as correct res!onses. .imilarl#0 being f"t"re oriented0 or foc"sed on !lanning for f"t"re contingencies0 is not an aggressive or confrontational trait so it can be r"led o"t as a correct res!onse. &iff: ( 'age Ref: 1= AA5.6: &iversit# *b+ective: (.( 1(8) ;n Mene2"ela Bana fo"nd that !eo!le tended to show great deference toward their s"!eriors. $hen meeting with one higher@"!0 she noticed that the local managers seemed to e hibit e tremel# obse9"io"s behavior. Aow wo"ld #o" characteri2e this traitE A) f"t"re oriented 6) high "ncertaint# avoidance 5) low !ower distance &) high !ower distance Answer: & E !lanation: &) 5"lt"res that tolerate large differences in !ersonal or !olitical !ower are said to have a high !ower distance. This contrasts with co"ntries like &enmark0 which don/t tend to tolerate ostentatio"s shows of !ower and are said to have a low !ower distance. ;n a c"lt"re of low !ower distance0 individ"als of different stat"s t#!icall# can s!eak as e9"als. ;n a c"lt"re of high !ower distance0 interaction between individ"als of different stat"s is often accom!anied b# overt dis!la#s that highlight this stat"s difference. >either f"t"re orientation nor high "ncertaint# avoidance is related to dis!la#s of !ower0 so the# are both incorrect res!onses for this 9"estion. &iff: 1 'age Ref: 1<@14 AA5.6: &iversit# *b+ective: (.(
1(<) ;n &enmark Bana met !eo!le who marveled abo"t the abilit# of Americans to be so ?bold? and fle ible when it came to making decisions abo"t the f"t"re0 while the &anish tended to rel# on r"les when facing "ncertaint#. Aow wo"ld #o" characteri2e this trait that Americans a!!ear to haveE A) low "ncertaint# avoidance 6) high "ncertaint# avoidance 5) high !ower distance &) individ"alistic Answer: A E !lanation: A) 5"lt"res that rel# on r"les when facing "ncertaint# are said to have high "ncertaint# avoidance. .ince Americans were being described as ?bold? and not rel#ing on r"les0 the# fit a low "ncertaint# avoidance !rofile. 'ower distance and how individ"alistic a c"lt"re is have little or nothing to do with how m"ch a societ# de!ends on r"les when facing "ncertaint#0 so both of these choices are incorrect. &iff: 1 'age Ref: 1<@14 AA5.6: &iversit# *b+ective: (.(
*!!osing Miews of .ocial Res!onsibilit# F.cenario) The board of directors of the ,o"r ,orks 7enerating 5or!oration is meeting to consider the constr"ction of a new electrical generation facilit# near the ,o"r ,orks River. &irector A!!leton !refers a coal@b"rning !lant beca"se it !romises to be the most !rofitable alternative. *ver the short term at least0 a coal !lant will be b# far the least e !ensive facilit# to b"ild and o!erate. 5oal is chea! and the considerable !oll"tion from the !lant won/t affect an#thing within h"ndreds of miles from the !lant. &irector Estrella wants a n"clear !lant to be located 10 miles "!river from the biggest cit# in the area. >"clear !ower is cleaner than coal. 5om!letel# safeg"arding the comm"nit# against accidents in the !lant or in dis!osing of to ic waste co"ld be ver# e !ensive. Aowever0 Estrella has discovered that the +ob can be done m"ch more chea!l# b# c"tting some cornerswhile still strictl# following all lawsand creating some additional risk for the comm"nit#. &irector Bossleman s"!!orts the most e !ensive o!tion of the threeshe wants a wind farm to be b"ilt along the banks of the river on to! of a ridge. The wind t"rbines !rod"ce absol"tel# no !oll"tion and !ose no threat to the comm"nit# or the environment. The# are e !ensive to b"ild and to o!erate at the c"rrent time beca"se the# re9"ire elaborate back@"! s#stems to f"nction when the wind isn/t blowing. 1(=) &irector A!!leton e hibits which of the following social res!onsibilit# viewsE A) social res!onsiveness 6) broad view of social res!onsibilit# 5) classical view of social res!onsibilit# &) socioeconomic view of social res!onsibilit# Answer: 5 E !lanation: 5) A!!leton has a strict classical view of social res!onsibilit#. Ae is looking at costs and !rofits onl#0 and is not concerned with long@term effects or !roblems. A!!leton/s view is not in accord with the socioeconomic view of social res!onsibilit#calling for b"sinesses to go be#ond !rofits and consider societ#/s welfare. A!!leton is not being sociall# res!onsive beca"se the !"blic is not calling for a high@!oll"tion !lant to be b"ilt. ,inall#0 a ?broad? view of social res!onsibilit# is a vag"e term that cannot describe the director/s views0 so it is not a correct res!onse. &iff: ( 'age Ref: 1)@30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
1(4) &irector Estrella e hibits which of the following social res!onsibilit# viewsE A) social awareness 6) socioeconomic view of social res!onsibilit# 5) classical view of social res!onsibilit# &) social obligation Answer: & E !lanation: &) Estrella is clearl# demonstrating a sense of social obligation. Ae wants to follow the letter of the law0 b"t doesn/t seem to have great concern for social welfare since he is willing to c"t corners on safet# for the !lant. Estrella is in a sense s!litting the difference between the socioeconomic and classical views of social res!onsibilit#. .ince a n"clear !lant !rod"ces less !oll"tion he is advocating for social welfare somewhat0 matching the socioeconomic view0 b"t his corner@c"tting also s"bscribes to the classical view0 !"tting costs above all else. ;n the end0 neither of these choices matches Estrella/s actions nearl# as well as social obligation. ,inall#0 social awareness is not a defined management term in this te t and so does not constit"te a correct res!onse. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 1()) &irector Bossleman is e hibiting which of the following social res!onsibilit# viewsE A) socioeconomic view of social res!onsibilit# 6) classical view of social res!onsibilit# 5) social obligation &) no social obligation Answer: A E !lanation: A) Bossleman is e hibiting a socioeconomic view rather than a classical view of social res!onsibilit#. .he is showing a concern for social welfare be#ond !rofits b# choosing the alternative that is less !rofitable b"t better for the societ#. Bossleman is clearl# adhering to all laws0 so neither social obligation nor no social obligation describes her !osition. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 110) ."!!ose &irector Bossleman !ro!oses b"ilding a wildlife !reserve near the windfarm for the local comm"nit#. $hat is Bosselman demonstrating in her !ro!osalE A) social res!onsiveness 6) socioeconomic view of social res!onsibilit# 5) classical view of social res!onsibilit# &) social awareness Answer: A E !lanation: A) The idea of social res!onsiveness goes be#ond classical and socioeconomic views of social res!onsibilit#. ;nstead it foc"ses on some s!ecific societal need and attem!ts to !rovide it. Bosselman/s !ro!osal fits this !rofile so it 9"alifies as social res!onsiveness. Bossleman is e hibiting a degree of social awareness0 b"t this is not a defined term in this te t and so is not a correct res!onse for this 9"estion. &iff: ( 'age Ref: 30 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1
Universit# F.cenario) %arta is a dean at -inden .tate Universit#0 a school with almost (00000 st"dents. ;n her dail# activities0 she has to deal with !roblems that involve st"dents0 fac"lt#0 c"rric"l"m0 b"dgets0 and a variet# of other things. Among the !roblems %arta needs to deal with are com!laints from st"dents that the Engineering &e!artment has onl# one fac"lt# member who is a woman and one who is a member of a minorit# gro"!. %arta has been meeting with the de!artment chair to address this !roblem. %arta recogni2es that st"dents and !arents !a# a lot of mone# to attend the "niversit#0 so when large and small !roblems arise %arta wants them dealt with effectivel#. .he has installed a (3@ ho"r ?Aassle -ine? with highl# trained !eo!le to answer 9"estions and solve !roblems. .he ho!es to have her Aassle -ine em!lo#ees f"nction within a c"stomer res!onsive c"lt"re. 111) %arta sees her school/s greatest o!!ort"nit# to increase enrollment in !ros!ective st"dents who were born in the 1)40s and earl# 1))0s. $hat term describes these !ros!ective st"dentsE A) bab# boomers 6) 7en C 5) 7en N &) 7en O Answer: 6 E !lanation: 6) The bab# boomers are defined as those !eo!le who were born in the decades that immediatel# followed $orld $ar ;;. The gro"! that followed the bab# boomers has been termed Generation X. Those that followed 7en N0 incl"ding c"rrent !eo!le of college age0 are identified as 7en C0 the correct res!onse. .o far0 no gro"! has been identified as 7en O0 so that res!onse is incorrect. &iff: ( 'age Ref: 31 *b+ective: (.3 11() ;n the Engineering &e!artment0 which choice best characteri2es the !roblem %arta needs to work onE A) workforce diversit# 6) entre!rene"rshi! 5) c"stomer service &) work !rocess engineering Answer: A E !lanation: A) Ass"ring that members of an organi2ation come from a wide variet# of different backgro"nds with res!ect to ethnicit#0 gender0 race0 se "al orientation0 and !h#sical abilit#Ldisabilit# is a 9"estion of maintaining workforce diversit#. Entre!rene"rshi! and c"stomer service onl# !eri!herall# deal with diversit#0 so the# are not correct res!onses here. $ork !rocess engineering0 which is a theor# of management0 is also not directl# related to diversit# and is an incorrect res!onse. &iff: ( 'age Ref: 3(@31 AA5.6: &iversit# *b+ective: (.3
111) %arta/s (3@ho"r ?Aassle -ine? is an attem!t to !rovide DDDDDDDD. A) workforce diversit# 6) im!roved em!lo#ee attit"des 5) high 9"alit# c"stomer service &) im!roved em!lo#ee efficienc# Answer: 5 E !lanation: 5) %arta recogni2es that satisfied c"stomers are the ke# to the s"ccess of her instit"tion0 so she is !lacing em!hasis on high 9"alit# c"stomer service b# creating her Aassle -ine. Ael!ing st"dents and !arents with !roblems is clearl# not an iss"e of workforce diversit#0 as it does not address the make@"! of em!lo#ees. The Aassle -ine re9"ires good em!lo#ee attit"des and a high level of em!lo#ee efficienc#0 b"t neither of these conce!ts describes what %arta is !roviding0 so the# are incorrect res!onses. &iff: ( 'age Ref: 38@3< AA5.6: 5omm"nication *b+ective: (.3 113) %arta/s Aassle -ine is !art of the c"stomer res!onsive c"lt"re she is creating. $hich of the following traits is something em!lo#ees within a c"stomer res!onsive c"lt"re do >*T re9"ireE A) freedom to act 6) em!owerment 5) good listening skills &) assertive !ersonalit# Answer: & E !lanation: &) To !rovide e cellent c"stomer service em!lo#ees need to be em!owered with the freedom to act and make decisions that will best serve the c"stomer and solve !roblems that arise. 7ood listening skills are also re9"ired for this +ob0 b"t an assertive !ersonalit# is not a re9"irement. Em!lo#ees sho"ld not be !assive0 b"t the# ideall# sho"ld have an agreeable !ersonalit# that is o"tgoing witho"t being overl# arg"mentative or confrontational. &iff: ( 'age Ref: 3= AA5.6: 5omm"nication *b+ective: (.8 118) *ne wa# in which %arta has managed to im!rove the control em!lo#ees have over their enco"nters with c"stomers is to DDDDDDDD. A) increase r"les and reg"lations 6) decrease r"les and reg"lations 5) abolish all r"les and reg"lations &) change r"les and reg"lations dail# Answer: 6 E !lanation: 6) Em!lo#ees are better able to resolve iss"es with c"stomers if the# have more control within their s#stem. *ne wa# to increase em!lo#ee control is to red"ce the n"mber of r"les and reg"lations em!lo#ees need to follow and allow them to "se their discretion in solving !roblems. ;ncreasing r"les wo"ld decrease rather than increase em!lo#ee control. Abolishing all r"les and reg"lations or changing them each da# are drastic meas"res and wo"ld likel# "nsettle em!lo#ees and decrease the confidence the# have in being able to solve !roblems and deal with diffic"lt sit"ations. &iff: ( 'age Ref: 34 AA5.6: Anal#tic .kills *b+ective: (.8
11<) %arta has !lans to instit"te a contin"o"s im!rovement !rogram thro"gho"t the "niversit#. $hich statement best s"mmari2es the !hiloso!h# of contin"o"s im!rovementE A) K"alit# can alwa#s be im!roved. 6) &on/t tr# to be !erfect. 5) ;f if ain/t broke0 don/t fi it. &) Tear ever#thing down and start all over. Answer: A E !lanation: A) 5ontin"o"s im!rovement is an incremental !olic# of alwa#s tr#ing to do better and never being satisfied. That is wh# ?9"alit# can alwa#s be im!roved? best s"mmari2es the !hiloso!h#Gver# good is not good eno"ghJ 9"alit# can alwa#s be im!roved. &on/t tr# to be !erfect and if it ain/t broke0 don/t fi it im!l# that the 9"est for im!rovement can end and em!lo#ees can be satisfied with their 9"alit#Gso both are incorrect res!onses. Tear ever#thing down and start all over better s"mmari2es a radical a!!roach to im!rovement thro"gh work !rocess engineering than contin"o"s im!rovement. &iff: 1 'age Ref: 3) AA5.6: Anal#tic .kills *b+ective: (.8 11=) %arta cond"cted an em!lo#ee training worksho! to e !lain the backgro"nd of contin"o"s im!rovement. $hich of the following 9"alit# e !erts is %arta most likel# to mention in this worksho!E A) kai2en 6) Aenr# ,ord 5) 9"ant"m change &) Aenri ,a#ol Answer: A E !lanation: A) %arta sho"ld mention kai2en0 the Ba!anese word for contin"o"s im!rovement in her worksho!. The theor# of contin"o"s im!rovement was develo!ed as a res"lt of $. Edwards &eming st"d#ing Ba!anese management in 1)80. %arta will !robabl# not mention another earlier management innovator0 Aenr# ,ord0 who develo!ed mass !rod"ction0 or Aenri ,a#ol0 who develo!ed !art of management theor#. .he is also "nlikel# to disc"ss 9"ant"m change0 as that is a ke# conce!t in work !rocess engineering0 not contin"o"s im!rovement. &iff: ( 'age Ref: 3) AA5.6: Anal#tic .kills *b+ective: (.8
114) ;n her worksho! to e !lain contin"o"s im!rovement0 which of the following is %arta most likel# to mention to em!lo#eesE A) intense foc"s on the c"stomer 6) intense foc"s on the !rod"ct 5) foc"s on efficienc# so that em!lo#ees don/t s!end too m"ch time with an# one c"stomer &) foc"s on radical change Answer: A E !lanation: A) 'art of the fo"ndation of contin"o"s im!rovement is an intense foc"s on the c"stomer. Tho"gh the !rod"ct and efficienc# sho"ldn/t be ignored0 em!lo#ees in a contin"o"s im!rovement s#stem sho"ld never lose sight of getting the c"stomer what he or she wants. Radical change is a tenet of work !rocess engineering rather than contin"o"s im!rovement0 so it is not a correct res!onse here. &iff: ( 'age Ref: 3) AA5.6: Anal#tic .kills *b+ective: (.8 11)) ;n her worksho! on contin"o"s im!rovement0 %arta might define customer as DDDDDDDD. A) all those who interact with the organi2ation/s !rod"cts or services 6) onl# those who !"rchase the organi2ation/s !rod"cts 5) s"!!liers and !"rchasers0 b"t not com!an# em!lo#ees &) onl# those who register a s!ecific com!laint regarding a !rod"ct or service Answer: A E !lanation: A) ;n a contin"o"s im!rovement s#stem the term customer is ver# broadl# defined and incl"des not onl# !eo!le who b"# !rod"cts and services from the com!an#0 b"t also s"!!liers and !"rchasersGin short0 an#one who does b"siness with the com!an# in an# ca!acit#. This r"les o"t all 1 incorrect choices as too narrow. &iff: ( 'age Ref: 3) AA5.6: Anal#tic .kills *b+ective: (.8 130) At times0 %arta worries that rather than seek contin"o"s im!rovement0 she sho"ld +"st discontin"e all of her !rograms and start all over. This t#!e of 9"ant"m change is characteristic of DDDDDDDD. A) 9"ant"m mechanics 6) a c"stomer res!onsive c"lt"re 5) work !rocess engineering &) the theories of $. Edwards &eming Answer: 5 E !lanation: 5) &rastic 9"ant"m change to overha"l a s#stem is a characteristic of work !rocess engineering. The !olic# doesn/t clash with a c"stomer res!onsive c"lt"re0 b"t it isn/t necessaril# a feat"re of it. The !olic# isn/t !art of theories !romoted b# &emingGhe was res!onsible for hel!ing to develo! contin"o"s im!rovement0 not work !rocess engineering. ,inall#0 9"ant"m mechanics is a branch of !h#sics0 not management theor#. &iff: ( 'age Ref: 80 AA5.6: Anal#tic .kills *b+ective: (.8
131) ;n a short essa#0 e !lain the differences between a m"ltidomestic cor!oration0 a global cor!oration0 and a transnational cor!oration. Answer: All three entities are t#!es of m"ltinational cor!orations F%>5s). 6oth m"ltidomestic and global cor!orations feat"re a home co"ntr# that has the "ltimate decision@making a"thorit# for the organi2ation. ;n a m"ltidomestic cor!oration0 control is decentrali2ed. The home co"ntr# allows local management to more or less com!letel# r"n the show for each o!eration0 c"stomi2ing !rod"cts and services to fit the market as the# see it. ;n a global cor!oration0 control is more centrali2ed as the home co"ntr# management is more likel# to set !olic# and intervene in local strategies and decisions. The transnational or borderless organi2ation re!resents a ste! f"rther in decentrali2ation from the m"ltidomestic. ;n a transnational0 central control is abolished and all o!erations coordinate together0 sharing in the decision@making !rocess. 5or!orations choose the transnational a!!roach to give their organi2ations a tr"l# international stance0 allowing them to !ose as disinterested !arties when it comes making decisions that might favor one co"ntr# over another. &iff: 1 'age Ref: 11 AA5.6: 7lobali2ations *b+ective: (.( 13() ;n a short essa#0 define !arochialism and e !lain wh# it can be a !roblem for U... managers. Answer: 'arochialism is the !rocess of viewing the world solel# thro"gh one/s own e#es and !ers!ectives. %anagers with a !arochial attit"de do not recogni2e that individ"als from other c"lt"res can have differentGand in most cases e9"all# validGsets of val"es0 traditions0 c"stoms0 and wa#s of living and working. 'arochialism is a significant obstacle for managers who work in a global b"siness world. ;f these managers fall into the tra! of dismissing others/ val"es and c"stoms and rigidl# a!!l#ing an attit"de of ?o"rs is better than theirs? to foreign c"lt"res0 the#/ll find it diffic"lt to com!ete with other non@!arochial organi2ations that are activel# seeking to "nderstand foreign c"lt"res and "sing that "nderstanding to their advantage.P &iff: ( 'age Ref: 1< AA5.6: &iversit# *b+ective: (.(
131) ;n a short essa#0 list and e !lain five of Aofstede/s dimensions of national c"lt"re. Answer: a. ;ndivid"alism vers"s collectivism: 5ollectivism is the degree to which !eo!le identif# with the gro"!. 5ollectivism lies in o!!osition to individ"alism0 the degree to which !eo!le !refer to act on their own as individ"al agents. A c"lt"re that is rated as having high collectivist tendencies will have low individ"alistic tendenciesJ similarl#0 a c"lt"re that is highl# individ"alistic is low on the collectivist scale. b. 'ower distance: 'ower distance is the degree to which !eo!le are acce!ting of gross differences in !ower in their societ#. A c"lt"re with a high !ower distance0 for e am!le0 is likel# to feat"re the ?big boss? in its midstGan individ"al who has an e cessive amo"nt of social0 economic0 and !erha!s militar# !ower and infl"ence. ;n a c"lt"re of low !ower distance0 individ"als of !ower are reined in0 relativel# s!eaking. ;n c"lt"res of low !ower distance individ"als of differing stat"s can s!eak as e9"als. ;n a c"lt"re of high !ower distance0 interaction between individ"als of different stat"s are likel# to be accom!anied b# overt dis!la#s of res!ect and other s#mbols of the !ower imbalance. c. Uncertaint# avoidance: Uncertaint# avoidance is a meas"re of how m"ch a c"lt"re de!ends on social instit"tions0 r"les0 and norms to co!e with "ncertaint#. A c"lt"re with high "ncertaint# avoidance wo"ld tend to de!end on r"les and social instit"tions to deal with "ncertaint#. A c"lt"re with low "ncertaint# avoidance wo"ld want more fle ible and less formal wa#s of dealing with "ncertaint#. Aigh "ncertaint# avoidance c"lt"res will tend to make ver# conservative decisions when facing "ncertaint#. -ow "ncertaint# avoidance c"lt"res tend to be more creative in facing "ncertaint#. d. K"antit# of life vers"s 9"alit# of life: K"antit# of life foc"ses largel# on material items and describes a t#!ical affl"ent western cons"mer c"lt"re. K"alit# of life reflects the degree to which !eo!le val"e s"ch things as famil#0 lo#alt#0 !ersonal relationshi!s0 and other things that ?mone# can/t b"#.? e. -ong@term vers"s short@term orientation: 'eo!le in long@term orientation c"lt"res look to the f"t"re0 val"e thrift and !ersistence0 and fre9"entl# dela# gratification. The# are like the ant that saves for the f"t"re in the well@known Aeso!/s fable. A short@term orientation val"es the !ast and !resent and em!hasi2es res!ect for tradition and f"lfilling social obligations. A short@term orientation is t#!icall# not s"ccessf"l in dela#ing gratification. .hort@term orientation c"lt"res resemble the grassho!!er in the Aeso!/s fable that ind"lges now rather than wait for the f"t"re. &iff: 1 'age Ref: 1< AA5.6: &iversit# *b+ective: (.(
133) ;n a short essa#0 e !lain the !arado of diversit# in an organi2ation. Answer: *rgani2ations seek to bring in !eo!le from diverse backgro"nds. Aaving a diverse workforce is the fair and e9"itable thing for an organi2ation to have in a heterogeneo"s societ#. ;t also hel!s !"t the organi2ation in better to"ch with all segments of the !o!"lation at large. The strength of a diverse workforce is to "tili2e differences between !eo!le. Aowever0 most cor!orations have strong cor!orate c"lt"res that bring a great deal of !ress"re on em!lo#ees to ?go with the flow? and conform to the cor!oration/s wa# of doing things. These two im!"lsesto celebrate differences and to conformare at cross@!"r!oses with one another and are the so"rce of the !arado of diversit#. ;n the end0 the manager/s goal is to bring abo"t acce!tance of diverse !eo!le in the organi2ation witho"t destro#ing the differences that make !eo!le s!ecial. &iff: ( 'age Ref: 31 AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.3 138) ;n a short essa#0 disc"ss the val"e of Aofstede/s val"es st"d# to managers. Answer: ;n one view0 Aofstede/s st"d# is nothing more than a collection of national stereot#!es that confirms the basest caricat"res of different ethnicities: the ?hot@tem!ered? 7reeks0 the Ba!anese who +"st want to ?fit in? with the gro"!0 the ?e acting? 7ermans. ;n "sing Aofstede/s data0 managers sho"ld be aware of these limitations and sho"ld not tr# to make generali2ations abo"t an# individ"al based on a c"lt"ral archet#!e or stereot#!e. %anagers sho"ld also be aware that Aofstede/s characteri2ations are not set in stone0 and that0 for e am!le0 a 7erman might t"rn o"t to be hot@tem!ered and a 7reek to be e acting. That said0 there is !redictive val"e in Aofstede/s characteri2ations. The# are0 in a sense0 a small window into each c"lt"re that can be "sed as a g"ide to the c"lt"re/s ho!es0 dreams0 and self@image as well as its habits and !riorities. Used wisel#0 Aofstede/s data can hel! managers "nderstand the national !s#cholog# of a co"ntr# as it relates to b"#ing0 selling0 and markets. &iff: 1 'age Ref: 1<@14 AA5.6: Reflective Thinking *b+ective: (.(
13<) ;n a short essa#0 describe the ste!s a com!an# takes in going global. Answer: The first ste! in going global is some sort of o"tso"rcing in which a com!an# b"#s materials or labor or both from a foreign so"rce. ,or e am!le0 a shoe com!an# might o"tso"rce its man"fact"ring to a co"ntr# in which labor is not as e !ensive as in its home co"ntr#. After o"tso"rcing0 e !orting and im!orting is likel# to follow. ,or e am!le0 the shoe com!an# ma# now begin to sell its shoes in foreign markets. ;t ma# also begin to im!ort lines of s!ecialt# shoes to sell in its domestic stores. A larger commitment than e !orting and im!orting involves licensing: selling the rights to make a !rod"ct overseas0 or franchising: selling the right to r"n a whole o!eration overseas. The third ste! in going global involves setting "! strategic alliances0 !artnershi!s with foreign com!anies0 and +oint vent"res0 s!ecial !artnershi!s in which a new com!an# is formed to create a s!ecific !rod"ct. A shoe com!an# might do this b# setting "! a !artnershi! with a foreign leather com!an# to !rod"ce handbags. The final ste! in going global is to set "! a foreign s"bsidiar#Ga branch of #o"r o!eration that will set "! sho! in the foreign location. ;n this case0 the shoe com!an# might b"ild an entire shoe factor# in a foreign location and hire local managers to r"n it. &iff: ( 'age Ref: 13@18 AA5.6: 7lobali2ations *b+ective: (.( 13=) ;n a short essa#0 disc"ss how telecomm"ting ca!abilities have changed the manager/s +ob. Answer: Aistoricall#0 the work site was located close to the labor so"rce0 so em!lo#ees were near their +obs. %anagement co"ld observe what work was being done and co"ld easil# comm"nicate with em!lo#ees face@to@face. Toda#0 thro"gh technological advancements0 managers are able to s"!ervise em!lo#ees in remote locations0 and the need for face@to@face interaction has decreased dramaticall#. %anagers m"st now meet the challenge of effectivel# comm"nicating with individ"als in remote locations and ens"ring that !erformance ob+ectives are being met. To address this challenge0 organi2ations foc"s on training managers to establish !erformance standards and ens"re a!!ro!riate work 9"alit# and on@time com!letionGno matter where and when the work is being done. Traditional ?face time? is fre9"entl# eliminated in decentrali2ed work sites0 and managers/ need to ?control? the work has evolved to the !oint in which em!lo#ees are more involved0 making decisions inde!endentl# and being held acco"ntable for their decisions. ,or instance0 managers m"st learn to forego traditional monitoring !rotocols and recogni2e that workers will work at their own !ace. ;nstead of limiting work efforts to an eight@ho"r !eriod0 an individ"al ma# work two ho"rs here0 three ho"rs at another time0 and another three late at night. The manager/s em!hasis sho"ld then be !laced on o"t!"t0 not means. As long as the task is com!leted satisfactoril# and on time0 the manager sho"ldn/t need to worr# abo"t how0 when0 or where the work was act"all# done. &iff: ( 'age Ref: 33 AA5.6: Technolog# *b+ective: (.3
134) ;n a short essa#0 disc"ss arg"ments for and against social res!onsibilit#. Answer: The classical view of social res!onsibilit# has 9"ite of bit of moral weight to it. ;f #o" define the !"r!ose of a !rofit@making com!an# or enter!rise to be to make mone# for its stockholders0 then an# activit# that is not devoted solel# to making mone# is a diversion from the goal and therefore it cheats the stockholders from their rightf"l !rofits. That means that an# f"nds0 reso"rces0 or efforts of an# t#!e to advance the welfare of societ# Fthe socioeconomic view of social res!onsibilit#) is therefore immoralGat least b# the definition !rovided so far. That said0 it seems artificial to assert that a com!an# has onl# a single !"r!oseGto make a !rofit. ;t is similar to sa#ing that a worker has onl# one !"r!oseGfor e am!le0 to feed his or her famil#0 and an# efforts made not in !"rs"it of that goal cheats the famil# o"t of its rightf"l !ro!ert# and is therefore immoral. Aowever0 workers clearl# do not have onl# one !"r!oseGthe# have m"lti!le !"r!oses: to feed their famil#0 to !rotect their famil#0 to teach their famil#0 and so on. 7oing back to a com!an#0 if it is incorrect to assert that a !erson can have onl# a single !"r!ose then it is !erha!s also incorrect to assert that a com!an# can have onl# a single !"r!ose. -ike a worker0 a com!an# can have m"lti!le !"r!oses. *ne of them might be to make a !rofit. *thers might incl"de s"ch things as !rotecting and im!roving societ#/s welfareGin other words0 the socioeconomic view of social res!onsibilit#. ;f #o" define a com!an# as an entit# that has man# !"r!oses0 some economic0 some moral0 then the conflict between the two views largel# melts awa#0 and the socioeconomic view becomes the onl# tr"e view of the sit"ation. &iff: 1 'age Ref: 1) AA5.6: Ethical Understanding and Reasoning Abilities *b+ective: (.1 13)) ;n a short essa#0 describe a sit"ation in which a manager wo"ld need to choose between contin"o"s im!rovement and work !rocess engineering for a com!an#. Answer: ;magine a search engine com!an# that wants its ;nternet search engine to be better than all other engines on the market. The com!an# might address the !roblem "sing the contin"o"s im!rovement model0 enco"raging its engineers to im!rove and streamline the software at ever# t"rn0 never being satisfied that it is ?good eno"gh.? *ver time0 this effort wo"ld "ndo"btedl# res"lt in a search engine that is vastl# better than the one the com!an# began with. Aowever0 is this reall# good eno"ghE &es!ite its efforts0 the com!an# might still find itself not being able to com!ete with the most s"ccessf"l !rod"cts on the market. .o now the 9"estion wo"ld become: sho"ld the com!an# contin"e on its co"rse of constant incremental im!rovement and !erha!s never catch "! with its com!etitorE *r sho"ld it tr# a com!letel# different tack along the lines of work !rocess engineering and make some radical changesE ;n other words0 sho"ld it tear down the search engine it alread# has and re@b"ild "sing an entirel# new0 and fresh a!!roachE These are the 9"estions that organi2ations face when dealing this kind of !roblem. The sol"tion0 of co"rse0 de!ends on the sit"ation. ;n some cases0 the !atient incremental !ath !a#s off. ;n others0 the more drastic a!!roach is the one that works. The ke#0 !erha!s0 is in eval"ating one/s sit"ation correctl# so the !ro!er strateg# can be chosen. &iff: 1 'age Ref: 3)@80 AA5.6: Anal#tic .kills *b+ective: (.8
180) ;n a short essa#0 describe a c"stomer@res!onsive c"lt"re. Answer: ;n a c"stomer@res!onsive c"lt"re0 em!lo#ees are friendl# and co"rteo"s0 accessible0 knowledgeable0 !rom!t in res!onding to c"stomer needs0 and willing to do what/s necessar# to solve !roblems and !lease the c"stomer. 5"stomer@res!onsive c"lt"res hire service@oriented em!lo#ees with good listening skills and the willingness to go be#ond the constraints of their +ob descri!tions to do what/s necessar# to satisfactoril# resolve an# iss"e that the c"stomer has. %anagement clarifies em!lo#ee roles0 frees them "! to meet changing c"stomer needs b# minimi2ing r"les and reg"lations0 and !rovides them with a wide range of decision discretion to do their +obs as the# see fit. &iff: ( 'age Ref: 3=@34 AA5.6: Anal#tic .kills *b+ective: (.8

Fundamentals of Management 8th Edition - Chapter 2 Test Bank

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Fundamentals of Management, 7e (Robbins/DeCenzo/Coulter) Chapter 2 The Management Environment 1) The $10 test showed that clever management can

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