MGMT7 7th Edition By Chuck Williams - Test Bank

MGMT7 7th Edition By Chuck Williams – Test Bank

Instant Download – Complete Test Bank With Answers

Sample Questions Are Posted Below

S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely. a. True
False

ANSWER: False

RATIONALE: S.M.A.R.T. goals are Specific, Measurable, Attainable, Realistic, and Timely.

POINTS: 1

LEARNING OBJECTIVES: Cognero C1F2724FD50D479B998E664D – 5.2a

TOPICS: AACSB Analytic

Tactical plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.
a. True
False

ANSWER: True

POINTS: 1

LEARNING OBJECTIVES: Cognero 67F05E09CA2E48A2A4CA6015 – 5.3b

TOPICS: AACSB Analytic

The process of decision making emphasizes the use of systematic procedures to arrive at optimal solutions. a. True
False

ANSWER: False

RATIONALE: The process of decision making does not do this; what is described is rational decision making.

POINTS: 1

LEARNING OBJECTIVES: Cognero 7C0F47967E8549A6999C6EC1 – 5.4

TOPICS: AACSB Analytic

Both absolute comparisons and relative comparisons are methods for identifying decision criteria. a. True
False

ANSWER: False

RATIONALE: These are methods for weighting the criteria, not identifying them.

POINTS: 1

LEARNING OBJECTIVES: Cognero 0C7F5CC2A1E64B2F806A268E – 5.4c

TOPICS: AACSB Analytic

In the Dephi technique, the members of a panel of experts respond to questions and to each other until reaching agreement on an issue.
a. True
False

ANSWER: True

POINTS: 1

LEARNING OBJECTIVES: Cognero 9C08ECB4F1A4457FB700103F – 5.5d

TOPICS: AACSB Analytic

Managers can monitor to track progress toward goal achievement. a. action plans and their implementation
proximal and distal goals
c. one-way and two-way evaluative techniques framing and non-framing goals
e. open-ended and close-ended techniques

ANSWER: b

POINTS: 1

LEARNING OBJECTIVES: Cognero 36F97C744120413EB15496D2 – 5.2d

TOPICS: AACSB Analytic

Top management is responsible for developing long-term:
a. standing plans tactical plans
c. operational plans strategic plans
e. mission statements

ANSWER: d

RATIONALE: Strategic plans make clear how the company will serve its customers and position itself against competitors.

POINTS: 1

LEARNING OBJECTIVES: Cognero D3B1EF3B9343483C8B8E8576 – 5.3a

TOPICS: AACSB Analytic

Management by objectives (MBO) is a management technique often used to develop and carry out plans. a. single-use
standing
c. operational tactical
e. hierarchical

ANSWER: d

POINTS: 1

LEARNING OBJECTIVES: Cognero 67F05E09CA2E48A2A4CA6015 – 5.3b

TOPICS: AACSB Analytic

Which of the following is the most specific type of standing plan?
a. policies
procedures
c. rules and regulations forecasts
e. MBO plans

ANSWER: c

POINTS: 1

LEARNING OBJECTIVES: Cognero 6F71F400AFD54FC4ACD3BCA5 – 5.3c

TOPICS: AACSB Analytic

10. One method of weighting decision criteria uses compared directly to every other
a. absolute comparisons relative comparisons c. valences
minimum threshold rule
e. comparative ranking scales

, which is a process where each decision criterion is

ANSWER: b

POINTS: 1

LEARNING OBJECTIVES: Cognero 0C7F5CC2A1E64B2F806A268E – 5.4c

TOPICS: AACSB Analytic

11. Which of the following statements explains why groups can produce better solutions than individuals in decision- making situations?
a. Formal groups have no group
Groups cannot experience information overload.
c. Groups become committed to solutions they help
Groups take additional time to carefully evaluate all options.
e. All of these are reasons why groups can produce better solutions than individuals in a decision-making

ANSWER: c

POINTS: 1

LEARNING OBJECTIVES: Cognero AC4547D0B81F46B69651D517 – 5.5a

TOPICS: AACSB Analytic

Creating and executing a plan is one of the most important tasks of a manager. a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.01 – 5.1

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Strategy

On average, companies that create plans have larger profits and grow much faster than companies that don’t. a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.01a – 5.1a TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

Planning can impede change, create a false sense of certainty, and lead to the detachment of planners. a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.01b – 5.1b TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

Planning is one of the best ways to improve organizational and individual performance. a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.01a – 5.1a TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

Planning is a three-step process which involves setting goals, then next developing effective action plans, and finally tracking progress toward goal achievement.
a. True
False

ANSWER: False

RATIONALE: Planning consists of a total of five steps: (1) setting goals, (2) developing commitment to the goals, (3) developing effective action plans, (4) tracking progress toward goal achievement, and (5) maintaining flexibility in planning. See Exhibit 5.1.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02 – 5.2

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Strategy

S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely. a. True
False

ANSWER: False

RATIONALE: S.M.A.R.T. goals are Specific, Measurable, Attainable, Realistic, and Timely.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02a – 5.2a TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

Encouraging worker participation in goal setting, making goals public, and getting top management’s support are all recommended ways to increase goal commitment in a company.
a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02b – 5.2b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

Both proximal and distal goals are used to provide additional motivation and rewards for employees. a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02d – 5.2d

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

For planning to be effective, workers need a specific, challenging goal as well as regular feedback to track their progress.
a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02d – 5.2d

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

10. The two approaches to maintaining flexibility in organizations while they plan are outcome-based planning and change-based
a. True
False

ANSWER: False

RATIONALE: The two approaches are traditional planning, which involves committing resources to one plan, and options-based planning, which involves investing resources in multiple plans.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02e – 5.2e TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

11. Planning works best when the goals and action plans at the bottom and middle of the organization supports the goals and action plans at the top of the
a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03 – 5.3

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

12. Developing a purpose statement is the sole responsibility of middle a. True
False

ANSWER: False

RATIONALE: Developing a purpose statement is the responsibility of top managers. See Exhibit 5.3.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03a – 5.3a

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

13. A strategic objective is a statement of a company’s purpose or reason for a. True
False

ANSWER: False

RATIONALE: This is the definition of a purpose statement. The strategic objective, which flows from the vision, is a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a timeframe.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03a – 5.3a

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

14. An organization’s purpose must regularly change to adapt to changes in the environment over a. True
False

ANSWER: False

RATIONALE: One of the defining characteristics of an organization’s purpose statement is that it should

be enduring.

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.03a – 5.3a TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

15. Tactical plans specify how a company will use its resources, budgets, and people to accomplish specific goals within its
a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

16. Tactical plans and objectives are used to direct behavior, efforts, and attention over the next six months to two
a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

17. Management by objectives is a two-step process in which managers and their employees discuss possible goals and then meet regularly to review progress toward the accomplishment of those
a. True
False

ANSWER: False

RATIONALE: Management by objectives is a four-step process in which managers and their employees (1) discuss possible goals; (2) participatively select goals that are challenging, attainable, and consistent with the company’s overall goals; (3) jointly develop tactical plans that lead to accomplishment of tactical goals and objectives; and (4) meet regularly to review progress toward accomplishment of those goals

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

18. The three kinds of operational plans are single-use plans, standing plans, and a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

19. Standing plans deal with unique, one-time-only a. True
False

ANSWER: False

RATIONALE: This is the definition of single-use plans. Standing plans are created once and then used repeatedly to handle frequently recurring events.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

20. The three kinds of standing plans are policies, procedures, and rules and a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

21. Budgeting is a critical management task, one that most managers could do a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

22. All decision making by management is a. True
False

ANSWER: False

RATIONALE: Rational decision making is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. Not all decision making is this logical.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.04g – 5.4g TOPICS: AACSB Reflective Thinking KEYWORDS: Individual Dynamics | Strategy

23. The term decision making is used to refer to the process of choosing a solution from available a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Reflective Thinking

KEYWORDS: Individual Dynamics | Strategy

24. The process of rational decision making emphasizes the use of systematic procedures to arrive at optimal

Not all processes of decision making follow suit. a. True

False

ANSWER: True

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Reflective Thinking

KEYWORDS: Individual Dynamics | Strategy

25. The six steps in the rational decision-making process are as follows: (1) frame the problem, (2) identify decision criteria, (3) weight the criteria, (4) generate alternative courses of action, (5) evaluate each alternative, and (6) compute the optimal
a. True
False

ANSWER: False

RATIONALE: The six steps in the rational decision-making process are as follows: (1) define the problem, (2) identify decision criteria, (3) weight the criteria, (4) generate alternative courses of action, (5) evaluate each alternative, and (6) compute the optimal decision.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Reflective Thinking

KEYWORDS: Individual Dynamics | Strategy

26. Both absolute comparisons and relative comparisons are methods for identifying decision a. True
False

ANSWER: False

RATIONALE: These are methods for weighting the criteria, not identifying them.

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.04c – 5.4c TOPICS: AACSB Reflective Thinking KEYWORDS: Individual Dynamics | Strategy

27. Groupthink is more likely to occur in a highly cohesive group that is insulated from others and has no established procedure for systematically defining problems and exploring
a. True
False

ANSWER: True

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.05a – 5.5a TOPICS: AACSB Reflective Thinking KEYWORDS: Group Dynamics | Strategy

28. After earning $8 billion in profit, Royal Dutch/Shell decided to strive to double its profits within the next five

Which classical management function would be instrumental in achieving this goal?

a. motivating
research and development c. planning
marketing e. optimizing

ANSWER: c

RATIONALE: Planning is defined as choosing a goal and developing a strategy to attain that goal.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.01 – 5.1

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

29. Planning is ultimately based upon .
a. how a planner deals with bounded rationality
choosing a goal and developing a method or strategy to achieve that goal c. the relationship between organizational line and staff personnel
whether the mission statement is internally or externally oriented e. the personality type of the individual engaged in planning

ANSWER: b

RATIONALE: This is the definition of planning.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.01 – 5.1

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

30. One of the benefits of planning is how it . a. encourages people to work faster
encourages people to try a variety of different ways to do others’ jobs c. reduces employee turnover
eliminates all discriminatory practices e. does none of these

ANSWER: e

RATIONALE: Section 1 of the chapter offers four benefits from planning: (1) intensified work effort, (2) increased persistence toward goals, (3) direction, and (4) creation of task strategies that lead to stronger performance.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.01a – 5.1a

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

31. One of the benefits of planning is how it .
a. encourages people to work harder for extended periods
encourages people to try a variety of different ways to do others’ jobs c. reduces employee turnover
creates a mechanistic environment e. does none of these

ANSWER: a

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.01a – 5.1a

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

32. One of the benefits of planning is how it . a. improves vertical integration of departments
encourages people to engage in behaviors directly related to goal accomplishment
c. encourages people to remain with the company, rather than go to work for the competition eliminates the need for change agents
e. makes a long-term mission statement redundant

ANSWER: b

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.01a – 5.1a

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

33. How does a company benefit from planning?
a. increased use of groupthink less solidified group cohesion
c. more compliance with organizational culture
intensified effort, persistence, direction, and creation of task strategies e. the ability to make greater use of devil’s advocacy

ANSWER: d

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.01a – 5.1a

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

34. The use of
a. assumptions commitment c. detachment d. tactics
e. benchmarking

in planning produces a false sense of certainty and is often cited as one of the major pitfalls of

ANSWER: a

RATIONALE: The three pitfalls of planning are: (1) planning may produce a false sense of security, (2) planning may impede change and adaptation, and (3) planners may operate detached from “ground level” reality of the company and its environment. Assumptions may play a role in creating a false sense of security to the degree that planners view them as certainties rather than probabilities.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.01b – 5.1b TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

35. According to the text, which of the following is a pitfall of planning?
a. the acceptance of sacrificing solutions
a false sense of certainty based on faulty assumptions
c. the inability of organizational line personnel to accept the long-term benefit of planning
the requirement for expensive employee training before plans can be effectively implemented e. outsourcing

ANSWER: b

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.01b – 5.1b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

36. Which of the following is a possible outcome of planning?
a. Planning may lead to a mechanistic organizational
Planning may harm individual and organizational performance. c. Planning can eliminate the need for formalization.
Planning will allow the company to know about all changes in its external environment before they occur. e. All of these are possible outcomes of planning

ANSWER: b

RATIONALE: Planning plays a rather controversial role in management. Its critics have pointed out that it

may harm individual and organizational performance. Planning is no “silver bullet.”

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.01b – 5.1b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

37. The last step in effective planning is to . a. maintain flexibility in planning
develop long-term action plans c. develop goal commitment
acculturate the employees
e. track progress toward goal achievement

ANSWER: a RATIONALE: See Exhibit 5.1. POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02 – 5.2

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

38. According to the M.A.R.T. guidelines, goals should be . a. Service-oriented
Measurable c. Rational
Tactical
e. Actionable

ANSWER: b

RATIONALE: S.M.A.R.T. goals should be: (1) Specific, (2) Measurable, (3) Attainable, (4) Realistic, and (5) Timely.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02a – 5.2a TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

39. According to the M.A.R.T. guidelines, goals should be . a. Aggregated
Reliable c. Timely
Motivated e. all of these

ANSWER: c

RATIONALE: S.M.A.R.T. goals should be: (1) Specific, (2) Measurable, (3) Attainable, (4) Realistic, and (5) Timely..

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02a – 5.2a TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

40. According to the M.A.R.T. guidelines, goals should be . a. Synergistic
Maximized c. Accelerated d. Role-related e. none of these

ANSWER: e

RATIONALE: S.M.A.R.T. goals should be: (1) Specific, (2) Measurable, (3) Attainable, (4) Realistic, and (5) Timely.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02a – 5.2a TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

41. Which of the following is NOT one of the characteristics of M.A.R.T. goals?
a. Synergistic Measurable c. Timely
Attainable e. Realistic

ANSWER: a

RATIONALE: S.M.A.R.T. goals should be: (1) Specific, (2) Measurable, (3) Attainable, (4) Realistic, and (5) Timely.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02a – 5.2a TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

42. The most popular approach to increasing goal commitment is . a. encouraging workers’ participation in goal setting
making goals public
c. getting top management’s support
assigning realistic and attainable goals e. management by mentoring

ANSWER: a

RATIONALE: Participative goal setting leads to higher goal commitment and is the most popular approach to achieving commitment.

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.02b – 5.2b TOPICS: AACSB Reflective Thinking KEYWORDS: Creation of Value | Strategy

43. Which of the following is a commonly used method for increasing goal commitment?
a. encouraging worker participation in goal setting keeping goals private
c. setting ethical goals
using ombudsman to set goals e. all of these

ANSWER: a

RATIONALE: Participative goal setting leads to higher goal commitment and is the most popular approach to achieving commitment.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02b – 5.2b TOPICS: AACSB Reflective Thinking KEYWORDS: Creation of Value | Strategy

44. Which of the following is a commonly used method for increasing goal commitment?
a. reward whistleblowing make goals public
c. get the union’s support use the equity theory
e. establish a median goal for all employees

ANSWER: b

RATIONALE: The text includes the example of a study that found college students had stronger goal commitment when they publicly committed to a goal of raising their GPA. Goal commitment is enhanced by such public goal statements.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02b – 5.2b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

45. A(n) lists the specific steps, people, resources, and time period for accomplishing a a. strategy
proximal goal c. distal goal
action plan
e. subordinate objective

ANSWER: d

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02c – 5.2c

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

46. Which of the following is an accepted method for tracking progress toward goal achievement?
a. setting response and stimulus goals
gathering and providing performance feedback c. using operant and classical conditioning
mechanistic and dynamic feedback e. data warehousing and data mining

ANSWER: b

RATIONALE: Providing feedback is identified as one of two major approaches to tracking progress toward goal attainment. The other is setting proximal and distal goals.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02d – 5.2d TOPICS: AACSB Analytic KEYWORDS: Creation of Value | HRM

47. The goal of a company was to reduce the expenses incurred by the sales force. A manager examining weekly expense sheets would be using which of the accepted methods for tracking progress toward goal achievement? a. setting realistic and attainable goals
gathering and providing performance feedback c. developing concrete action plans
making sure goals are measurable
e. comparing dynamic with mechanistic goals

ANSWER: b

RATIONALE: Providing feedback is identified as one of two major approaches to tracking progress toward goal attainment. This manager is providing data useful for determining progress in relation to sales productivity and cost containment.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02d – 5.2d

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles

48. A manufacturer of suntan lotion could set a(n)

goal to increase revenues by 8 percent over the next five

years and a(n)

a. tactical; strategic

goal to increase sales next June in the Miami Beach area by 3 percent.

operational; tactical c. distal; proximal
operational; strategic e. proximal; distal

ANSWER: c

RATIONALE: Proximal goals are short-term or subgoals, while distal goals are long-term or primary.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02d – 5.2d TOPICS: AACSB Analytic KEYWORDS: Creation of Value | HRM

49. can help organizations to maintain flexibility as they a. Environmental munificence
Options-based planning c. Formalization
Liaisons
e. Group cohesiveness

ANSWER: b

RATIONALE: Options-based planning is a major approach to planning which provides greater strategic flexibility.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02e – 5.2e

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

50. planning keeps options open by making small, simultaneous investments in many alternative a. Learning-based
Options-based c. Conditioned
Functional e. Operant

ANSWER: b

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02e – 5.2e TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

51. The basic purpose of planning is to leave commitments open by maintaining slack a. options-based planning
learning-based planning c. traditional planning
operant planning
e. the establishment of planning windows

ANSWER: a

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02e – 5.2e TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

52. For options-based planning to work, the organization must . a. have slack resources
use cross-functional teams
c. have broad spans of management have tall organizational structures e. use decentralization

ANSWER: a

RATIONALE: Slack resources are defined as a cushion of extra resources that can be used with options- based planning to adapt to unanticipated changes, problems, or opportunities.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02e – 5.2e TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

53. Planning works best when the goals and action plans at the

of the organization support the goals and action

plans at the

of the organization.

a. bottom and top; middle top and middle; bottom c. bottom and middle; top
group level; individual level e. staff level; line level

ANSWER: c

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03 – 5.3

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles | Strategy

54. Top management is responsible for developing long-term

that make clear how the company will serve

customers and position itself against competitors in the next two to five years. a. standing plans

tactical plans
c. operational plans strategic plans
e. mission statements

ANSWER: d

RATIONALE: This is the definition of strategic plans, which are typically developed by top management.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03a – 5.3a

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

55.

is responsible for developing strategic plans that make clear how the company will serve customers and position itself against competitors in the next two to five years.

a. An action team
Middle management c. Planning staff
A change agent
e. Top management

ANSWER: e

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03a – 5.3a

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

56. An Australian manufacturer of surfboards wants to increase awareness of its brand in the S. market. A

plan to accomplish this objective might be to host a series of surfboard competitions in California . a. contingency

single-use c. standing
visionary e. tactical

ANSWER: e

RATIONALE: Tactical plans are plans created and implemented by middle managers. They specify how the company will use resources, budgets, and people over the next six months to two years to accomplish specific goals within its mission statement. Here, the surfboard maker is using this tactical plan to increase brand awareness in the United States.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

57. A department store is experiencing greater than usual losses due to theft and management wants it stopped. Middle management decided to hire a security company to study the problem and develop the best plan for dealing with Middle management have implemented a(n) plan.
a. contingency strategic
c. operational visionary
e. tactical

ANSWER: e

RATIONALE: Tactical plans are plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next six months to two years to accomplish specific goals within its mission statement.

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

58.

plans are plans that specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.

a. Strategic Tactical
c. Operational Single-use e. Dialectical

ANSWER: b

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

59. Who is responsible for the creation of tactical plans?
a. team leaders
lower-level managers c. middle managers
top managers e. staff advisors

ANSWER: c

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b TOPICS: AACSB Reflective Thinking KEYWORDS: Leadership Principles

60. What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturer?
a. single-use plan
contingency plan c. scenario plan
standing plan
e. role-model plan

ANSWER: a

RATIONALE: Single-use plans are defined as plans that cover unique, one-time events (in this case the

100-year anniversary).

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

61. Management by objectives (MBO) is a management technique often used to develop and carry out . a. single-use plans
standing plans
c. operational plans tactical plans
e. hierarchical plans

ANSWER: d

RATIONALE: MBO is defined as a four-step process in which managers and employees (1) discuss and (2) select goals, (3) develop tactical plans, and (4) meet regularly to review progress toward goal accomplishment. MBO focuses on shorter-term tactical planning.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles | Strategy

62. Which of the following is NOT a step in the management by objectives (MBO) process?
a. jointly discuss possible goals
participatively select goals that are challenging c. jointly develop operational plans
meet regularly to review progress toward goal accomplishment
e. participate in the selection of goals that are consistent with the company’s overall goals

ANSWER: c

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles | Strategy

63. When done correctly, management by objectives (MBO) is an extremely effective method for . a. brainstorming
developing policies and procedures
c. broadening the span of transformation problem framing
e. tactical planning

ANSWER: e

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles | Strategy

64. Who is primarily responsible for developing operational plans?
a. lower-level managers middle managers
c. top managers staff advisors e. any of these

ANSWER: a

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles | Strategy

65.

plans direct the behavior, efforts, and priorities of operative employees for periods ranging from one to six months.

a. Strategic Tactical
c. Operational Standing
e. Procedural

ANSWER: c

RATIONALE: Operational plans are defined as day-to-day plans, developed and implemented by lower-

level managers, for producing or delivering the organization’s products and services over a

30-day to six-month period.

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

66. There are three kinds of plans. They are single-use plans, standing plans, and a. strategic
tactical
c. operational MBO
e. actionable

ANSWER: c

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

67. are a type of operational a. Single-use plans
Contingency plans
c. Short-term strategies Mission modifications e. Benchmarks

ANSWER: a

RATIONALE: The three kinds of operational plans are single-use plans, standing plans, and budgets.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

68. The

is a type of operational plan that saves managers time because it is created once and then used

repeatedly to handle frequently recurring events. a. standing plan

budget
c. multiple-use plan
options-based plan e. forecast

ANSWER: a

RATIONALE: Standing plans are used repeatedly to handle frequently recurring events.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Leadership Principles | Strategy

69. In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and include evacuating buildings. What kind of a standing plan is described in this example?
a. rules and regulations procedures
c. policies
organizational norms e. security governances

ANSWER: b

RATIONALE: Procedures are defined as a standing plan indicating the specific steps that should be taken in response to a particular event. Here the company has established procedures to be used in the event of a fire.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

70. are types of standing a. Policies and procedures
Targeted plans
c. Long-term tactical strategies MBO guidelines
e. Transformational plans

ANSWER: a

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

71. are standing plans that indicate the specific steps that should be taken in response to a particular a. Policies
Procedures
c. Actionable plans
Options-based plans e. Single-use plans

ANSWER: b

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

72. A(n)

is a standing plan that indicates the general course of action that should be taken in response to a

particular event or situation. a. policy

procedure c. rule
regulation e. heuristic

ANSWER: a

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Ethical Responsibilities | HRM | Legal Responsibilities | Strategy

73. Which of the following is the most specific type of standing plan?
a. policies
procedures
c. rules and regulations forecasts
e. MBO plans

ANSWER: c

RATIONALE: Rules and regulations are defined as standing plans that describe how a particular action should be performed or what must happen or not happen in response to a particular event. Rules and regulations are more specific than procedures because they precisely define what must happen (and not happen) in response to a particular event.

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

74. Budgets are an example of a. strategic
tactical
c. operational actionable e. single-use

ANSWER: c

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

75. At a canning factory, new employees were instructed never to wear loose-fitting clothes when working around the canning machine. What kind of a standing plan is described in this example?
a. rules and regulations procedures
c. policies
organizational norms e. security governances

ANSWER: a

RATIONALE: This is a precise statement of the type of clothing that should not be worn in the workplace (a rule).

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

76. is the process of choosing a solution from available a. Decision making
Problem identification c. Heuristics
Multivariable selection e. Problem solving

ANSWER: a

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Reflective Thinking

KEYWORDS: Individual Dynamics | Strategy

77. is a systematic process of defining problems, evaluating alternatives, and choosing optimal a. Problem identification
Rational decision making c. Benchmarking
Multivariable selection e. Keystoning

ANSWER: b

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Reflective Thinking

KEYWORDS: Individual Dynamics | Strategy

78. Neither Chile nor Peru have a massmarket café culture, but that fact has not stopped Starbucks from engaging in

to determine how best to expand into those markets. a. intuitive conditioning

benchmarking
c. decision making
organizational design e. conditioned learning

ANSWER: c

RATIONALE: Decision making is the process of choosing a solution from available alternatives.

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Analytic

KEYWORDS: Environmental Influence | Individual Dynamics | Strategy

79. Neither Chile nor Peru has a massmarket café culture, but that fact has not stopped Starbucks from trying to determine what can be done to make its coffee houses successful in those markets. By recognizing that people in these two South American countries do not drink coffee like people in the United States and that they should change this habit, Starbucks has begun a process with problem
a. rational decision making trend analysis
c. sacrificing
selection of optimal solutions e. framing constraints

ANSWER: a

RATIONALE: The first step in rational decision making is problem identification.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Analytic

KEYWORDS: Environmental Influence | Individual Dynamics | Strategy

80. The European Union encourages companies to abandon national boundaries and offer the same products to all of the member countries. Allianz, Germany’s largest insurance group, is considering converting from a German company to a European company. If it makes this decision rationally, it will first .
a. create decision criteria based on national GNPs
identify problems arising from tax and regulatory issues c. decide whether to expand to one nation at a time
create a committee to make the final decision e. avoid the use of bounded rationality

ANSWER: b

RATIONALE: Problem identification is the first step in rational decision making.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Analytic

KEYWORDS: Environmental Influence | Individual Dynamics | Strategy

81. A

exists when there is a gap between a desired state (what managers want) and an existing state (the

situation that the managers are facing). a. service gap

benchmark
c. condition of uncertainty minimum threshold
e. problem

ANSWER: e

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.04a – 5.4a TOPICS: AACSB Reflective Thinking KEYWORDS: Individual Dynamics | Strategy

82. Which of the following is one of the six steps in the rational decision-making process?
a. choose a minimally acceptable alternative solution evaluate the effectiveness of the decision
c. weight the criteria
introduce the decision to those who will be impacted by it e. identify customer service gaps

ANSWER: c

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Reflective Thinking

KEYWORDS: Individual Dynamics | Strategy

83. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling pirated Coke in dumped bottles. The company recognized this unauthorized bottler as a(n) .
a. standard of malfeasance problem
c. benchmark
keystone issue e. absolute criteria

ANSWER: b

RATIONALE: A problem exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing).

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.04a – 5.4a

TOPICS: AACSB Analytic

KEYWORDS: Environmental Influence | Individual Dynamics | Strategy

84. One method of weighing decision criteria uses to every other
a. absolute comparisons relative comparisons c. valences
minimum threshold rule
e. comparative ranking scales

, which is a process where each decision is compared directly

ANSWER: b

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.04c – 5.4c TOPICS: AACSB Reflective Thinking KEYWORDS: Individual Dynamics | Strategy

85. In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling

pirated Coke in dumped bottles. Coke decided in the

stage of the rational decision-making process that it had

to either bring some sort of legal action against the unauthorized bottler, ignore it, or buy it. a. problem definition

criteria weighting
c. generation of alternative courses of action identification of decision criteria
e. finding the optimal solution

ANSWER: c

RATIONALE: Taking legal action, ignoring, or buying are three possible courses of action that would solve the problem.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.04d – 5.4d

TOPICS: AACSB Analytic

KEYWORDS: Environmental Influence | Individual Dynamics | Strategy

86. As a company that manufactures janitorial cleaning supplies tries to develop more environmentally -friendly products that can clean as well as its current ones, the company’s manager must select among alternatives derived

from oranges, parsley, lemon, or a combination of these ingredients. This is the making model.

a. generate alternative courses of action evaluate each alternative
c. compute the optimal decision satisfice each alternative
e. bounded rationality

step in the rational decision-

ANSWER: b

RATIONALE: The company must evaluate each alternative ingredient.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.04e – 5.4e

TOPICS: AACSB Analytic

KEYWORDS: Environmental Influence | Individual Dynamics | Strategy

87. Marie-Helene de Taillac is a well-known European designer of understated, very delicate jewelry. Once she determined that further growth was impossible without changing how she distributed her product, she decided to open her own retail outlet to sell her products rather than letting department stores sell it. Since she made the decision without really examining how much the costs involved in implementing her decision, she has engaged in

behavior. a. benchmarking b. laddering

c. satisficing maximizing e. leapfrogging

ANSWER: c

RATIONALE: She chose an alternative solution that was “good enough” without examining every last

variable.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.04g – 5.4g

TOPICS: AACSB Analytic

KEYWORDS: Environmental Influence | Individual Dynamics | Strategy

88. occurs when managers choose an alternative that is good enough, rather than the best possible a. Maximizing
Optimizing
c. Availability bias Negative frame e. Satisficing

ANSWER: e

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.04g – 5.4g TOPICS: AACSB Reflective Thinking KEYWORDS: Individual Dynamics | Strategy

89. Groupthink occurs in .
a. newly formed groups whose members were arbitrarily selected and who are assigned to make programmed decisions
groups in which members have dissimilar backgrounds
c. standing committees whose members are under no pressure to agree groups whose members are elected to serve as figureheads
e. highly cohesive groups where there is a great deal of pressure to agree with each other

ANSWER: e

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.05a – 5.5a TOPICS: AACSB Reflective Thinking KEYWORDS: Group Dynamics

90. is the emotional reaction that can occur when disagreements become personal rather than a. A-type conflict
C-type conflict
c. Emotive empowerment
Organizational disharmony e. Norm disruption

ANSWER: b

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.05b – 5.5b TOPICS: AACSB Reflective Thinking KEYWORDS: Individual Dynamics

91. The

approach to decision-making is a method in which an individual or a subgroup is assigned the role of a

a. dialectical inquiry groupthink
c. devil’s advocacy Delphi
e. dyadic communications

ANSWER: c

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.05b – 5.5b TOPICS: AACSB Reflective Thinking KEYWORDS: Group Dynamics

92. The

is a decision-making method in which a panel of experts responds to questions and to each other until an

agreement is reached on how a specific issue should be handled. a. dialectical inquiry technique

nominal group technique c. Delphi technique
electronic brainstorming technique e. feedback method

ANSWER: c

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.05d – 5.5d TOPICS: AACSB Reflective Thinking KEYWORDS: Group Dynamics

93. The nominal group technique improves group decision making by . a. requiring the selection of co-leaders to prevent member dominance
providing predetermined group norms c. eliminating group cohesiveness
decreasing a-type conflict
e. encouraging all members to have an equal voice in the decision making process

ANSWER: d

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.05c – 5.5c TOPICS: AACSB Reflective Thinking KEYWORDS: Group Dynamics

94. Which of the following is NOT one of the rules for effective brainstorming?
a. The more ideas, the
Select an open-minded group leader. c. All ideas are acceptable.
Criticism is not allowed.
e. Use other members’ ideas to come up with more

ANSWER: b

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.05e – 5.5e TOPICS: AACSB Reflective Thinking KEYWORDS: Group Dynamics

95. Which of the following is a disadvantage of face-to-face brainstorming that is overcome by electronic brainstorming?
a. assimilation blocking production blocking c. delegation errors
group norm evaluation e. negative valence

ANSWER: b

RATIONALE: One example of production blocking is having to wait your turn to share your idea.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.05e – 5.5e

TOPICS: AACSB Reflective Thinking

AACSB Technology

KEYWORDS: Group Dynamics | Information Technologies

Krispy Kreme

Krispy Kreme is a relatively small doughnut seller. It has only 295 stores while Dunkin Donuts has over 3,600 outlets in the United States and Canada. In spite of its size, Krispy Kreme has been described by many as “the hottest brand in America.” The company’s success in an environment which has made success difficult for many food operations is due in large part to the long-term vision of its top management and its establishment and achievement of S.M.A.R.T. goals. The company originated in Winston-Salem, North Carolina, in the mid-1930s when Vernon Rudolph bought a secret recipe for yeast doughnuts from a French pastry cook. Rudolph ran the company until he died in 1973 without naming a successor, which caused the company problems for the next decade.

96. Refer to Krispy Kreme. How does Krispy Kreme benefit from planning?
a. Planning makes persistence
Planning allows managers to direct their employees to “do their best.”
c. Planning gives direction to managers and d. Planning eliminates the need for task strategies.
e. Planning would provide all of these benefits to Krispy

ANSWER: c

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.01a – 5.1a TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

97. Refer to Krispy Kreme. Krispy Kreme’s goal to open six new Krispy Kreme stores by 2009 in British Columbia where it already has a well-established reputation would be an example of a M.A.R.T. goal because it is . a. specific, marketable, and temporal
specific, measurable, attainable, realistic, and timely
c. service-oriented, manageable, achievable, and time-oriented
standardized, measurable, actionable, response-driven, and temporal e. selective, marketable, achievable, and real-time-oriented

ANSWER: b

RATIONALE: These are the characteristics of S.M.A.R.T. goals.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02a – 5.2a TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

98. Refer to Krispy Kreme. The company’s goal to open six new Krispy Kreme stores in the next six months in British

Columbia where it already has a well-established reputation would be an example of a(n) goal. a. distal

temporal c. adjacent d. proximal e. advocacy

ANSWER: d

RATIONALE: Proximal goals are short-term.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02d – 5.2d TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

99. Refer to Krispy Kreme. The company’s goal to never reveal its secret recipe to anyone outside the company is an

example of a(n) goal. a. distal

temporal c. adjacent d. proximal e. advocacy

ANSWER: a

RATIONALE: Distal goals are long-term, primary goals.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02d – 5.2d TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

100. Refer to Krispy Kreme. Which of the following would be an example of an operational plan for Krispy Kreme?
a. to open a new plant for making doughnut mix outside the S. b. to change the color of the “walking KK” logo of the company
c. to turn on the HOT DOUGHNUTS NOW sign whenever fresh doughnuts came off the line to hire a new human relations vicepresident to oversee all of the company’s operations
e. to modify the doughnut mix recipe so that less expensive ingredients can be used

ANSWER: c

RATIONALE: Operational plans are day-to-day type decisions such as this advertising move.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

D.G. Yuengling & Son

With beer sales dropping around the world, you should be ecstatic that sales of Yuengling (pronounced Ying-Ling) beer are up 225 percent in the last six years. But as you walk through the caves and tunnels of Yuengling’s Eagle Brewery, carved into Sharp Mountain in 1831 to maintain a perfect 50-degree temperature for storing beer, you see not only the history of America’s oldest brewery everywhere you turn, but also chipped paint, rusting pipes, and an aging plant that can’t keep up with the growing demand for Yuengling beer. So far, thanks to hard work, dedicated workers, and some luck, you’ve doubled your production capacity from 250,000 to 500,000 barrels of beer a year, but if you push for more, the old brewery will break.

Yet with sales up so dramatically, the company faces a problem. Says CEO and owner Dick Yuengling, “We are sold out of beer. We run the risk of losing our customer base because we don’t have any product on the shelves.” Shortages are so bad that the advertising

budget has been cut from $3 to $2 a barrel. Yuengling explains, “You can’t fuel the fire when we can’t get them beer anyway.” With production stuck at 500,000 barrels a year, Yuengling beer has become harder to find even as it has become more popular. Sales representative Diane Adams said, “It was a little hairy. People were up in arms.” So, rather than sacrifice sales in its home market of Pennsylvania, where Yuengling has its largest market

share (10 percent), the company has temporarily stopped shipping beer to distributors in Maine, Massachusetts, and Rhode Island. Since that strategy won’t help Yuengling grow outside Pennsylvania, you still face the question of how to permanently increase beer production to meet the growing demand.

You’ve identified five options. The first is to add new storage and finishing tanks to Eagle Brewery to increase production capacity by 10 percent to 550,000 barrels a year. Though doable, this is only a short-term solution. Second, you could outsource production to another company. This would be more cost-effective, but would Yuengling beer produced in non-Yuengling factories taste different? For a specialty beer, this could be a substantial risk. Still, outsourcing would be affordable, and Yuengling has done it before, outsourcing production of its Black

and Tan beer to Pabst Blue Ribbon’s brewery in Lehigh, Pennsylvania, until Pabst closed that facility four years ago. The third option is to buy another brewery, but there aren’t many for sale and those that are would be expensive and require significant upgrades. For example, it would cost $13 million to buy and $5 million to fix Stroh’s 1.5 millionbarrel brewery in Tampa, Florida, which is far from Yuengling’s northeastern markets.

A fourth option is to build a new factory capable of producing 1.2 million barrels per year, but that would cost $50 million and take three years. The fifth and final option is simply to do nothing. The company is already very profitable, has low overhead costs, and is very efficient. In other words, by doing nothing the company could still make a lot of money without incurring the risks inherent in the other options. And risk is a real consideration because everyone in the company remembers that Yuengling was losing money just a few years ago.

101. Refer to Yuengling. In the first stage of the planning process for Yuengling, it should have . a. developed an effective action plan that would satisfy all of its customers
identified its problem as the fact that demand for its beer exceeds its ability to supply it c. developed several alternative methods for supply its beer to customers
established a budget
e. developed goal commitment to customer satisfaction

ANSWER: b

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.04a – 5.4a TOPICS: AACSB Analytic KEYWORDS: Strategy

102. Refer to Yuengling. Yuengling’s objective to pay off its loan for a new $50 million brewery within five years was an example of a
a. generational
learning-based c. distal
options-based e. proximal

ANSWER: c

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02d – 5.2d

TOPICS: AACSB Analytic

KEYWORDS: Environmental Influence | Strategy

103. Refer to Yuengling. What type of planning allowed Yuengling to purchase the Stroh’s brewery?
a. resource-based learning-based
c. environmentally-specific options-based
e. generational

ANSWER: d

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02e – 5.2e

TOPICS: AACSB Analytic

KEYWORDS: Environmental Influence | Strategy

104. What is planning and what are its benefits?

ANSWER: Planning is choosing a goal and developing a method to achieve that goal. Planning is one of the best ways to improve organizational and individual performance. It encourages people to work harder (intensified effort), to work hard for extended periods (persistence), to engage in behaviors directly related to goal accomplishment (directed behavior), and to think of better ways to do their jobs (task strategies). But most important, companies that plan have larger profits and faster growth than companies that don’t plan.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.01a – 5.1a

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

105. Briefly describe the benefits and pitfalls of

ANSWER: Planning refers to choosing a goal and developing a method or strategy to achieve that goal. Planning has numerous benefits. It is one of the best ways to improve both organizational and individual performance. It encourages people to work harder (intensified effort), to work hard for extended periods (persistence), to engage in behaviors directly related to goal accomplishment (directed behavior), and to think of better ways to do their jobs (task strategies). But most important, companies that plan have larger profits and faster growth than companies that don’t plan. However, planning also has three potential pitfalls. Companies that are overly committed to their plans may be slow to adapt to changes in their environment. Planning is based on assumptions about the future, and when those assumptions are wrong, plans are likely to fail. Finally, planning can fail when planners are detached from the implementation of plans.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.01a-01b – 5.1a-5.1b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

106. List the steps in effective

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02 – 5.2

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles | Strategy

107. Identify and explain the purpose of the M.A.R.T. guidelines.

ANSWER: One way of writing effective goals for yourself, your job, or your company is to use the S.M.A.R.T. guidelines. S.M.A.R.T. goals are Specific, Measurable, Attainable, Realistic, and Timely. The purpose of the S.M.A.R.T. guidelines is to give managers an easy-to-remember acronym that can help them to set effective goals during their stressful and busy daily activities.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.02a – 5.2a TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

108. Identify three ways of increasing goal commitment. Which one is most commonly used by managers?

ANSWER: Managers can bring about goal commitment in three ways. The first and most popular approach is to set goals participatively. Rather than assigning goals to workers, managers and employees choose goals together. The second technique is making the goal public by having individuals and work units tell others about their goals. The third way of increasing goal commitment is to obtain top management’s support. Top management can show support for a plan or program by providing funds, speaking publicly about the plan, or participating in the plan itself.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02b – 5.2b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles | Strategy

109. Briefly identify and explain the two accepted methods of tracking progress toward goal

ANSWER: There are two accepted methods of tracking progress. The first is to set proximal goals and distal goals. Proximal goals are short-term goals or subgoals, whereas distal goals are long-term or primary goals. The idea behind setting proximal goals is that they may be more motivating and rewarding than waiting to achieve far-off distal goals. The second method of tracking progress is to gather and provide performance feedback. Regular, frequent performance feedback allows workers and managers to track their progress toward goal achievement and make adjustments in effort, direction, and strategies.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02d – 5.2d

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Strategy

110. Identify the four basic steps in the management by objectives

ANSWER: Management by objectives is a four-step process in which managers and employees (1) discuss possible goals, (2) participatively select goals, (3) jointly develop tactical plans, and (4) meet regularly to review progress toward goal accomplishment.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles

111. List and briefly describe the three kinds of operational

ANSWER: The three kinds of operational plans are: (1) single-use plans, which cover unique,

one-time-only events; (2) standing plans, which save managers time because they are created once and then used repeatedly to handle frequently recurring events; and (3) budgets, which are quantitative plans which managers use to decide how to allocate available money to best accomplish company goals.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles

112. List and briefly describe the three kinds of standing plans. Comment on their relative

ANSWER: The three types of standing plans are policies, procedures, and rules and regulations.

Each is more specific than the previous. Policies are the least specific type of standing plan. They indicate the general course of action that company managers should take in response to a particular event or situation. Procedures are more specific than policies, because they indicate the series of steps that should be taken in response to a particular event. Rules and regulations are even more specific than procedures because they specify what must happen or not happen. They describe precisely how a particular action should be performed.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03c – 5.3c TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

113. Define the terms decision making and rational decision making. Briefly differentiate between

ANSWER: Decision making is the process of choosing a solution from available alternatives.

Rational decision making is a systematic process in which managers define problems, evaluate alternatives, and choose optimal solutions that provide maximum benefits to their organizations. Rational decision making is more structured and would be one of the approaches that might be used in the more general process of decision making.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Analytic

KEYWORDS: Strategy

114. List the six steps in the rational decision making

ANSWER: The six steps in the rational decision making process are: (1) define the problem, (2) identify decision criteria, (3) weight the criteria, (4) generate alternative courses of action, (5) evaluate each alternative, and (6) compute the optimal decision.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Reflective Thinking

KEYWORDS: Individual Dynamics | Strategy

115. Briefly explain what decision criteria are. Identify two approaches that may be used to weight these

ANSWER: Decision criteria are the standards used to guide judgments and decisions. Typically, the more criteria that a potential solution meets, the better that solution should be.

After identifying decision criteria, the next step in the rational decision making process is deciding which criteria are more or less important. While there are numerous mathematical models for weighting decision criteria, all require the decision maker to provide an initial ranking of the decision criteria. Some use absolute comparisons, in which each criterion is compared to a standard or ranked on its own merits. Another method is relative comparisons, in which each criterion is compared directly to every other criterion.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.04b – 5.4b TOPICS: AACSB Reflective Thinking KEYWORDS: Individual Dynamics | Strategy

116. Briefly identify the two types of conflict that may spontaneously occur in situations of group decision

Comment on the probable effectiveness of group decisions given each type of conflict.

ANSWER: The two types of conflict that might spontaneously occur in a group are c-type conflict and a-type conflict. C-type conflict, or cognitive conflict, focuses on problem- and issue-related differences of opinion. In c-type conflict, group members disagree because their different experiences and expertise lead them to different views of the problem and its potential solutions. However, c-type conflict is also characterized by a willingness to examine, compare, and reconcile those differences to produce the best possible solution. By contrast, a-type conflict, or affective conflict, refers to the emotional reactions that can occur when disagreements become personal rather than professional. A-type conflict often results in hostility, anger, resentment, distrust, cynicism, and apathy. So, unlike c-type conflict, a-type conflict undermines team effectiveness by preventing teams from engaging in the kinds of activities (including

c-type conflict!) that are critical to team effectiveness. Thus, c-type conflict can enhance the quality of group decisions, while a-type conflict will probably reduce the effectiveness of those decisions.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.05b – 5.5b TOPICS: AACSB Reflective Thinking KEYWORDS: Group Dynamics | Strategy

117. Describe a planning effort that you are acquainted with (either through reading or personal experience), and explain how both the benefits and pitfalls of planning described in the chapter were manifest in your case. Comment on the extent to which your case seems to substantiate or refute the claims made in the text for the benefits and pitfalls of

ANSWER: Planning is defined as choosing a goal and developing a method or strategy to achieve that goal. Student case examples should clearly identify both the goal of the planning effort and the method used to achieve it. The more benefits and pitfalls of planning (summarized below) the student integrates into his or her answer, the better the answer. Adequate answers will simply restate text examples. Better answers will be original applications of the text material to a case or scenario not presented in the text or class lecture; such answers show not only mastery of the material but ability to apply it. Either way, answers should clearly indicate how the events and outcomes in the case that is presented either substantiate or refute the statements made about the benefits and pitfalls of planning in the text.

Planning is one of the best ways to improve both organizational and individual performance. As presented in the text, planning has four main benefits. It encourages people (1) to work harder (intensified effort), (2) to work hard for extended periods (persistence), (3) to engage in behaviors directly related to goal accomplishment (directed behavior), and (4) to think of better ways to do their jobs (task strategies). But most important, companies that plan have larger profits and faster growth than companies that don’t plan. However, planning also has three potential pitfalls. (1) Companies that are overly committed to their plans may be slow to adapt to changes in their environment. (2) Planning is based on assumptions about the future, and when those assumptions are wrong, plans are likely to fail. (3) Finally, planning can fail

when planners are detached from the implementation of plans.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.01a-01b – 5.1a-5.1b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles

118. A daughter of a well-known financier is currently in her first year of college but has decided that she definitely wants to earn an MBA as soon as possible after earning her four-year college degree. Outline the five steps in effective planning and use these planning guidelines to develop an appropriate plan for

ANSWER: Planning consists of a total of five steps: (1) setting goals, (2) developing commitment to the goals, (3) developing effective action plans, (4) tracking progress toward goal achievement, and (5) maintaining flexibility in planning. In terms of (1) setting goals, goals need to be specific and challenging in order to direct behavior and increase effort. Her present goal is specific, but could be made more challenging by targeting any one of the top 25 MBA programs in the country as her goal. In terms of (2) developing commitment to her goal, we can assume that if She has selected this goal on her own (i.e., participatively) and understands all of its implications, then she is probably already sufficiently committed to it at a personal level. She might enhance this commitment by making a public statement of her goal and soliciting (and receiving) support from her parents in achieving it. In terms of (3) developing

effective action plans, She should research the MBA degree and how it contributes to career success. Then she should draw up a concrete written plan, outlining the

specific steps, people, resources, and time period for accomplishing her goal. Her research will probably lead her to conclude that she should gain several years of work experience in her desired industry before enrolling in an MBA program. In terms of (4) tracking progress toward goal achievement, She should set a series of integrated proximal and distal goals, where the proximal goals (e.g., maintain a high GPA,

arrange for an internship while in college, network as much as possible to develop connections for a later job search) and clearly related subgoals will move her forward to her distal (long-term or primary) goals. Examples of distal goals might be obtaining an entry level position in finance at a major corporation upon graduation and then obtaining company support to pursue a top-flight MBA degree within five years of beginning work. She should utilize her grades as well as contact with her professors while in college to solicit feedback and evaluate her progress and use her

performance appraisals and other contacts as sources of feedback once she begins working full-time after graduation. Finally, in terms of (5) maintaining flexibility in planning, She should be ready to revise her overall plan if, at any point along the way, insurmountable obstacles become apparent. For example, if it should become clear that she cannot earn a high GPA in college, then she should lower her sights and shoot for a less prestigious MBA program.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02 – 5.2

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | Strategy

119. How can organizations maintain flexibility as they plan? Explain how the method for maintaining flexibility is different from traditional

ANSWER: Organizations can use options-based planning to maintain flexibility as they plan. The goal of options-based planning is to keep options open by making small, simultaneous investments in many options or plans. Then when one or a few of these plans emerge as likely winners, you invest even more in these plans while discontinuing or reducing investment in the others.

This approach differs significantly from traditional planning. In part, options-based planning is the opposite of traditional planning. For example, the purpose of a traditional action plan is to commit people and resources to a particular course of action. However, the purpose of options-based planning is to leave those commitments open. Holding options open gives you choices and those choices give you flexibility.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.02e – 5.2e TOPICS: AACSB Analytic KEYWORDS: Creation of Value | Strategy

120. Compare and contrast the planning done at the top, middle, and bottom levels of an

ANSWER: Planning at all levels of management must follow the five steps in effective planning: (1) setting goals, (2) developing commitment to the goals, (3) developing effective action plans, (4) tracking progress toward goal achievement, and (5) maintaining flexibility in planning. Similarly, planning at all three levels of management is interrelated, as proper planning requires that the goals at the bottom and middle of the organization support the objectives at the top of the organization. However, there are significant differences in the objectives and timetables of the planning process at the top, middle, and lower levels of the organization. Top management develops strategic plans that indicate how a company will serve customers and position itself against competitors over a two- to five-year period. Strategic planning starts with the creation of an organizational vision and mission. Middle managers use techniques like management by objectives to develop tactical plans that direct behavior, efforts, and priorities over the next six months to two years. Finally, lower-level managers develop operational plans that guide daily activities in producing or delivering an organization’s products and services. Operational plans typically span periods ranging from 30 days to six months. There are three kinds of operational plans: single-use plans, standing plans (policies, procedures, and rules and regulations), and budgets. Thus, all three levels of planning should follow the same steps, but the objectives and timetables are different at each level, and plans at all levels must be carefully developed to ensure their effective interdependence in achieving overall organizational goals.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03 – 5.3

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles

121. Describe the management by objectives (MBO) process. Which type of manager would be responsible for MBO?

What is the probable value of MBO to managers?

ANSWER: Management by objectives is a management technique often used by middle managers to develop and carry out tactical plans. Middle management is responsible for developing and carrying out tactical plans to accomplish the organization’s mission. Tactical plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission cover the next six months to two years. Management by objectives, or MBO, is a four-step process in which managers and their employees (1) discuss possible goals, (2) participatively select goals that are challenging, attainable, and consistent with the company’s overall goals, (3) jointly develop tactical plans that lead to accomplishment of tactical goals and objectives, and (4) meet regularly to review progress toward accomplishment of those goals. When done right, MBO is an extremely effective method of tactical planning. The results from 70 different organizations strongly support the effectiveness of management by objectives. On average, companies that effectively use MBO will outproduce those that don’t use MBO by an incredible 44.6 percent! And in companies where top management is committed to MBO (that is, where objective-setting begins at the top) the average increase in performance is an even more astounding 56.5 percent. By contrast, when top management does not participate in or support MBO, the average increase in productivity drops to 6.1 percent. In all, though, there is a 97 percent chance that companies that use MBO will outperform those that don’t! Thus, MBO can make a very big difference to the companies that use it.

POINTS: 1

DIFFICULTY: Moderate

LEARNING OBJECTIVES: WILL.MGMT.15.5.03b – 5.3b

TOPICS: AACSB Analytic

KEYWORDS: Creation of Value | HRM | Leadership Principles

122. Explain how the rational decision-making process may help to overcome predispositions and biases that a manager has in a given decision making

ANSWER: Rational decision making is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. It is based upon a clearly defined series

of six steps, which, when followed, force a manager to carefully identify and evaluate multiple relevant aspects of a problem. The six steps in the rational decision-making process are: (1) define the problem, (2) identify decision criteria, (3) weight the criteria, (4) generate alternative courses of action, (5) evaluate each alternative, and (6) compute the optimal decision.

The systematic application of this process helps managers cut through intuitive feelings and biases which might otherwise predominate in decision making. When managers pay more explicit attention to carefully defining the problem and concretely articulating decision criteria and weights, they develop a more objective framework for evaluating and selecting among alternatives. Further, the mathematical approach to computing the optimal value of each alternative in order to make the final decision further reduces the chances that non-rational biases or influences will intervene and influence the outcome. In these ways, the rational decision-making process can help

to ensure a more logical and systematically defensible decision to problems facing the manager.

POINTS: 1

DIFFICULTY: Difficult

LEARNING OBJECTIVES: WILL.MGMT.15.5.04 – 5.4

TOPICS: AACSB Analytic

KEYWORDS: Individual Dynamics | Motivation Concepts | Strategy

123. Define the two types of conflict that may spontaneously occur in situations of group decision making. List and explain the approaches to structured conflict that may help to enhance the quality of group decisions. Be sure to comment on the research results which evaluate their

ANSWER: Most people view conflict negatively. However, the right kind of conflict can lead to much better group decision making. C-type conflict, or cognitive conflict, focuses on problem- and issue-related differences of opinion. In c-type conflict, group members disagree because their different experiences and expertise lead them to different views of the problem and its potential solutions. However, c-type conflict is characterized by a willingness to examine, compare, and reconcile those differences

to produce the best possible solution. By contrast, a-type conflict, or affective conflict, refers to the emotional reactions that can occur when disagreements become personal rather than professional. A-type conflict often results in hostility, anger, resentment, distrust, cynicism, and apathy. So, unlike c-type conflict, a-type conflict undermines team effectiveness by preventing teams from engaging in the kinds of activities, such as c-type conflict, that are critical to team effectiveness.

Devil’s advocacy and dialectical inquiry are two methods that introduce structured c- type conflict into the group decision-making process. Devil’s advocacy creates c-type conflict by assigning an individual or a subgroup the role of a critic. This individual criticizes and questions a proposed solution in order to help decision makers decide whether to use, change, or not use the original proposed solution. Dialectical inquiry creates c-type conflict by forcing decision makers to state the assumptions behind a proposed solution (a thesis) and to then generate a solution that is the opposite (antithesis) of the proposed solution. It takes the form of a debate between advocates of the thesis and antithesis and, like the devil’s advocacy approach, helps decision makers decide whether to use, change, or not use the original proposed solution.

When properly used, both the devil’s advocacy and dialectical inquiry approaches introduce c-type conflict into the decision-making process. Contrary to the common belief that conflict is bad, studies show that these methods lead to less a-type conflict, improved decision quality, and greater acceptance of decisions once they have been made. In meta-analytic research on the effectiveness of these techniques, each technique has been compared to decisions obtained by following experts’ advice. While the estimated probabilities of success may seem small, (55 percent for dialectical inquiry and 58 percent for devil’s advocacy), they very likely understate the effects of both techniques. In other words, the probabilities of success would have been much larger if both techniques had been compared to the unstructured decision- making processes typical of the average group’s or manager’s approach.

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: WILL.MGMT.15.5.05b – 5.5b TOPICS: AACSB Reflective Thinking KEYWORDS: Group Dynamics | Strategy

S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely. a. True
False

ANSWER: False

RATIONALE: S.M.A.R.T. goals are Specific, Measurable, Attainable, Realistic, and Timely.

POINTS: 1

LEARNING OBJECTIVES: Cognero 62D87B67545C4D5098094E62 – 5.2a

TOPICS: AACSB Analytic

Tactical plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.
a. True
False

ANSWER: True

POINTS: 1

LEARNING OBJECTIVES: Cognero 723CD603EFFC419B867368EE – 5.3a

TOPICS: AACSB Analytic

Managers can monitor to track progress toward goal achievement. a. action plans and their implementation
proximal and distal goals
c. one-way and two-way evaluative techniques framing and non-framing goals
e. open-ended and close-ended techniques

ANSWER: b

POINTS: 1

LEARNING OBJECTIVES: Cognero 822725A5FF77420A8A96F42A – 5.2d

TOPICS: AACSB Analytic

can help organizations to maintain flexibility as they plan. a. Environmental munificence
Options-based planning c. Formalization
Liaisons
e. Group cohesiveness

ANSWER: b

RATIONALE: The goal of options-based planning is to keep options open by making small, simultaneous investments in many options or plans.

POINTS: 1

LEARNING OBJECTIVES: Cognero D2CF4AC1D74F4850AF77F5E2 – 5.2e

TOPICS: AACSB Analytic

Top management is responsible for developing long-term

that make clear how the company will serve

customers and position itself against competitors in the next two to five years. a. standing plans

tactical plans
c. operational plans strategic plans
e. mission statements

ANSWER: d

RATIONALE: Strategic plans make clear how the company will serve its customers and position itself against competitors.

POINTS: 1

LEARNING OBJECTIVES: Cognero 723CD603EFFC419B867368EE – 5.3a

TOPICS: AACSB Analytic

Management by objectives (MBO) is a management technique often used to develop and carry out:
a. single-use plans standing plans
c. operational plans tactical plans
e. hierarchical plans

ANSWER: d

POINTS: 1

LEARNING OBJECTIVES: Cognero A002525421154BA2AFBAD129 – 5.3b

TOPICS: AACSB Analytic

Which of the following is the most specific type of standing plan?
a. policies
procedures
c. rules and regulations forecasts
e. MBO plans

ANSWER: c

POINTS: 1

LEARNING OBJECTIVES: Cognero 9E7327B739FD4C8292030F38 – 5.3c

TOPICS: AACSB Analytic

The first step in rational decision making is to: a. conduct a systematic environmental analysis b. define the problem
c. evaluate the alternatives choose the solutions
e. create a management team

ANSWER: b

POINTS: 1

LEARNING OBJECTIVES: Cognero D37F62FF58384EE28EC00A3B – 5.4a

TOPICS: AACSB Analytic

One method of weighting decision criteria uses compared directly to every other criterion.
a. absolute comparisons relative comparisons c. valences
minimum threshold rule
e. comparative ranking scales

, which is a process where each decision criterion is

ANSWER: b

POINTS: 1

LEARNING OBJECTIVES: Cognero FCC50701997B4EA2AB0EFABF – 5.4c

TOPICS: AACSB Analytic

10. To make completely rational decisions, managers would have to operate in a perfect world with no:
a. constraints
benchmarking
c. methodology validity information overload e. all of these

ANSWER: a

POINTS: 1

LEARNING OBJECTIVES: Cognero 57E2970643E24F67B564C17A – 5.4g

TOPICS: AACSB Reflective Thinking

11.

alternative.

occurs when managers choose an alternative that is good enough, rather than the best possible

a. Maximizing Optimizing
c. Availability bias Negative frame e. Satisficing

ANSWER: e

POINTS: 1

LEARNING OBJECTIVES: Cognero 57E2970643E24F67B564C17A – 5.4g

TOPICS: AACSB Analytic

12. The

of a critic.

approach to decision making is a method in which an individual or a subgroup is assigned the role

a. dialectical inquiry groupthink
c. devil’s advocacy Delphi
e. dyadic communications

ANSWER: c

POINTS: 1

LEARNING OBJECTIVES: Cognero 5C2AC1B8B8B14799BE8F712F – 5.5b

TOPICS: AACSB Analytic

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MGMT7 7th Edition By Chuck Williams - Test Bank

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