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CHAPTER 1—THE MANAGER'S JOB

MULTIPLE CHOICE
1. Management is the process of
a. maintaining the status quo.
b. planning, organizing and staffing, leading, and controlling.
c. keeping labor from taking over.
d. facilitating groups.

ANS: B PTS: 1 DIF: E REF: p. 2


NAT: AACSB: Analytic, Strategy

2. Crafting a strategic(chiến lược) vision(tầm nhìn) is typically the responsibility of a


a. first-level manager.
b. middle-level manager.
c. staff professional.
d. top-level manager.

ANS: D PTS: 1 DIF: M REF: p. 3


NAT: AACSB: Analytic, Strategy

3. Three roles or activities within entrepreneurial (khởi nghiệp) work that arouse
passion do NOT include:
a. opportunity recognition
b. venture growth
c. human resources
d. venture creation

ANS: C PTS: 1 DIF: D REF: pp. 6-7


NAT: AACSB: Analytic, Leadership Principles

4. Nick is a successful entrepreneur, so he probably emphasizes(nhấn mạnh) which of


the following dimensions in his work?
a. Innovativeness
b. minimizing risks
c. reacting to events rather than being proactive
d. a love for the status quo
ANS: A PTS: 1 DIF: E REF: p. 6
NAT: AACSB: Reflective Thinking, Leadership Principles

5. On the job, Candice coordinates (kết hợp) the work of a small group of people and
acts as a catalyst. Her job title is most likely
a. vice president.
b. CEO.
c. plant general manager.
d. team leader.

ANS: D PTS: 1 DIF: M REF: p. 7


NAT: AACSB: Reflective Thinking, Group Dynamics

6. An important role for the team leader is to


a. act as a catalyst and facilitator.
b. tightly control the work of team members.
c. set a strategic direction for the firm.
d. avoid interactions with team members.

ANS: A PTS: 1 DIF: M REF: p. 7


NAT: AACSB: Reflective Thinking, Leadership Principles

7. Sherri Jackson is a sales manager. She searches the Internet to find new
potential(tiềm năng) markets for her products. Jackson is most directly making use
of ____ resources.
a. Human
b. Financial
c. Physical
d. Information

ANS: D PTS: 1 DIF: E REF: p. 8


NAT: AACSB: Technology, Information Technology

8. Which function of management is most involved with energizing, directing,


activating, and persuading others?
a. Leading
b. Controlling
c. Planning
d. organizing and staffing
ANS: A PTS: 1 DIF: E REF: p. 10
NAT: AACSB: Reflective Thinking, Leadership Principles

9. With respect to(about) creating visions, leaders often fail because they do not
a. have fancy enough visions.
b. Convert their visions into results.
c. use visions for inspiration.
d. bribe people for accomplishing a vision.

ANS: B PTS: 1 DIF: M REF: p. 10


NAT: AACSB: Analytic, Leadership Principles

10. Controlling is primarily concerned with(liên quan)


a. making rational decisions.
b. comparing actual performance to a predetermined standard.
c. influencing people to perform better.
d. laying out work in a logical manner.

ANS: B PTS: 1 DIF: E REF: p. 10


NAT: AACSB: Analytic, Individual Dynamics

11. The two planning roles for manager involve


a. monitoring and disturbance handling.
b. strategy and operations.
c. being a figurehead and a spokesperson.
d. team building and team play.

ANS: B PTS: 1 DIF: E REF: p. 11


NAT: AACSB: Analytic, Individual Dynamics

12. Making sure that competent persons fill positions is part of which managerial role?
a. Organizer
b. Liaison
c. staffing coordinator
d. resource allocator
ANS: C PTS: 1 DIF: M REF: p. 12
NAT: AACSB: Analytic, HRM

13. With respect to managers, poor interpersonal skills


a. have a neutral impact on performance.
b. can lead to job failure.
c. are not important because "Nice guys and gals finish last."
d. only create problems at the first two levels of management.

ANS: B PTS: 1 DIF: M REF: p. 17


NAT: AACSB: Communication, Individual Dynamics

14. Political skills should be regarded as a


a. supplement to job competence.
b. way to overcome job incompetence.
c. way of creating ambiguity on the job.
d. privilege of top management.

ANS: A PTS: 1 DIF: M REF: p. 19


NAT: AACSB: Communication, Individual Dynamics

15. A key part of developing your managerial skills would be to


a. forget about practice as soon as you acquire a skill.
b. practice kick boxing to sharpen your reflexes.
c. obtain feedback on your performance.
d. ignore the comments of others on how well you are doing.

ANS: C PTS: 1 DIF: M REF: p. 19


NAT: AACSB: Communication, Individual Dynamics

16. At the higher levels of management, the four roles that are the most important
include::
a. organizer, visionary, team builder, facilitator.
b. Liaison (liên lạc), spokesperson, figurehead, and strategic planner
c. environmental specialist, mentor, coach, ethics officer.
d. administrator, implementor, entrepreneur, task coordinator

ANS: B PTS: 1 DIF: D REF: p. 16


NAT: AACSB: Analytic, Individual Dynamics

17. According to Mintzberg, management is a practice, rather than a science or a


profession because
a. science is about the development of systematic knowledge through
research.
b. management follows an ethical code.
c. the major purpose of management is to help get things done.
d. both a & c

ANS: D PTS: 1 DIF: D REF: p. 16


NAT: AACSB: Reflective Thinking, Individual Dynamics

18. Management as a practice,


a. began during the Industrial Revolution.
b. probably has an almost unlimited history.
c. dates back to World War II.
d. dates back to the Civil War.

ANS: B PTS: 1 DIF: E REF: p. 20


NAT: AACSB: Analytic, Strategy

19. The primary concern of the administrative management aspect of classical


management was
a. managing a company's information system.
b. teaching nonprofit organizations how to be successful.
c. how organizations should be managed and structured.
d. the application of scientific methods to increase workers' productivity.

ANS: C PTS: 1 DIF: E REF: p. 21


NAT: AACSB: Analytic, Strategy

20. According to the historically important work of Alfred D. Chandler, when choosing
an organization structure, managers should first
a. study what the competition is doing.
b. be aware of the strategy.
c. draw a hundred boxes to choose from.
d. look for the least expensive structure.
ANS: B PTS: 1 DIF: D REF: pp. 21- 22
NAT: AACSB: Reflective Thinking, Strategy

21. The behavioral approach to management emphasizes


a. developing systems for dealing with personnel problems.
b. the interaction of the firm with the environment.
c. finding the most efficient systems of production.
d. understanding people.

ANS: D PTS: 1 DIF: E REF: p. 22


NAT: AACSB: Analytic, Strategy

22. An organization may experience entropy when


a. its total output exceeds the sum of the parts.
b. it does not receive fresh inputs from the external environment.
c. too many employees call in sick in a given year.
d. three consecutive new products are winners.

ANS: B PTS: 1 DIF: D REF: p. 26


NAT: AACSB: Analytic, Strategy

23. An important subset of interpersonal skills for managers is the ability to work
effectively and conduct business with people from different cultures.
a. Multiculturalism
b. Bilingualism
c. Diversity
d. Multinationalism

ANS: A PTS: 1 DIF: E REF: p. 18


NAT: AACSB: Diversity, Motivation Concepts

24. You are using evidence-based management when your practice is based on
a. a recent fad.
b. what your CEO thinks is hot.
c. thinking by philosophers.
d. an established principle.
ANS: D PTS: 1 DIF: D REF: p. 17
NAT: AACSB: Analytic, Strategy

25. Evidence-based management chooses an organizational practice based on


a. the best evidence available.
b. qualitative evidence only.
c. quantitative evidence only.
d. careful forecasts.

ANS: A PTS: 1 DIF: E REF: p. 17


NAT: AACSB: Analytic, Strategy

CHAPTER 2—INTERNATIONAL MANAGEMENT AND CULTURAL DIVERSITY

MULTIPLE CHOICE
21.The majority of cultures throughout the world are
a. relationship oriented.
b. task oriented.
c. old-age oriented.
d. youth oriented.

1. A distinguishing(phân biệt) feature(tính năng) of a multinational corporation(tập


đoàn) is that it
a. exports some of its products and services.
b. pays comparable wages wherever it conducts business.
c. has a culturally diverse group of executives.
d. has units in two or more countries in addition to its own.

ANS: D PTS: 1 DIF: E REF: p. 36


NAT: AACSB: Analytic, Strategy

2. The North American Free Trade Agreement (NAFTA) creates liberal trading
relationships among
a. North American and Pacific Rim countries.
b. North American and European countries.
c. the United States and Canada.
d. the United States, Canada, and Mexico.

ANS: D PTS: 1 DIF: E REF: p. 37


NAT: AACSB: Analytic, Legal Responsibilities

3. A concern(quan tâm) many labor union officials have about NAFTA is that it has
created
a. wealthy Canadian and Mexican workers at the expense of U.S.
workers.
b. a job loss for American workers.
c. widespread violations of child labor laws.
d. limited trade between Mexico and the United States.

ANS: B PTS: 1 DIF: D REF: p. 38


NAT: AACSB: Diversity, Legal Responsibilities

4. The major purpose of the European Union (EU) is to turn member countries into
a. Countries with the identical currency.
b. a single marketplace for ideas, goods, and services.
c. free trade agreements with the United States.
d. fierce competitors.

ANS: B PTS: 1 DIF: E REF: p. 39


NAT: AACSB: Analytic, Environmental Influence

5. The World Trade Organization


a. imposes tariffs on countries with a history of human rights violations.
b. liberalizes trade among many nations throughout the world.
c. lowers trade barriers and tariffs for developing countries.
d. Increases trade barriers and tariffs for industrialized countries.

ANS: B PTS: 1 DIF: E REF: p. 39


NAT: AACSB: Analytic, Legal Responsibilities

6. An advantage of free-trade agreements for a company like Big Moe, the paper
recycler in New Jersey, is that the company can
a. avoid paying United States income tax.
b. avoid paying New Jersey income tax.
c. import trees from China and India more readily.
d. Export more easily.

ANS: D PTS: 1 DIF: D REF: p. 39


NAT: AACSB: Reflective Thinking, Strategy

7. A major advantage of offshoring(đưa ra nc ngoài) for some American companies is


that they
a. lower costs and therefore become more competitive.
b. raise prices to cover the costs of offshoring.
c. develop closer alliances with American labor unions.
d. can avoid participation in international business.

ANS: A PTS: 1 DIF: M REF: pp. 40-41


NAT: AACSB: Reflective Thinking, Operations Management

8. A key characteristic(tính chất) of multicultural workers is that they


a. have worked for one or more multicultural organizations.
b. believe in the importance of a favorable balance of trade.
c. are convinced(persuade) that all cultures are equally good.
d. can speak at least two languages fluently.

ANS: C PTS: 1 DIF: D REF: p. 43


NAT: AACSB: Diversity, HRM

9. You are attempting to sell a British customer a corporate jet. He tells you that your
proposal "holds of bit of promise." At this point you probably
a. will sign a contract within the hour.
b. are being scrutinized for ethical violations.
c. stand a good chance of making the sale.
d. have no chance of making the sale.

ANS: C PTS: 1 DIF: D REF: p. 44


NAT: AACSB: Communication, Individual Dynamics

10. Cultural sensitivity is


a. awareness of local and national customs
b. being extra-respectful of rank.
c. realizing the importance of local customs in effective interpersonal
relationships.
d. both a & c

ANS: D PTS: 1 DIF: E REF: p. 42


NAT: AACSB: Diversity, Individual Dynamics

11. Billy is a supervisor(người giám sát) from Billings, Montana (United States). You
can tell that Billy is ethnocentric(chủ nghĩa dân tộc) when he
a. worries about the U. S. trade deficit.
b. Decorates his cubicle with photos of cowboys, cowgirls, and their
horses.
c. claims that the "real good people are only from Montana."
d. deliberately hires people who will make his group more diverse.

ANS: C PTS: 1 DIF: D REF: p. 43


NAT: AACSB: Diversity, Individual Dynamics

12. You have good global leadership skills when you can
a. go on an overseas business trip without developing culture shock.
b. effectively lead people from other cultures.
c. get diverse members of your group to work well together.
d. speak two or more languages fluently.

ANS: B PTS: 1 DIF: E REF: p. 45


NAT: AACSB: Communication, Leadership Principles

13. A major effect of a weak currency is that companies based in the country with the
weak currency
a. can export more readily.
b. find it more difficult to export.
c. are forced to increase their wages.
d. are forced to decrease their wages.

ANS: A PTS: 1 DIF: M REF: p. 46


NAT: AACSB: Analytic, Operations Management
14. A country’s balance of trade is
a. the trade deficit..
b. a trade surplus.
c. the difference between exports and imports in both goods and services.
d. the lowering of the value of currency

ANS: C PTS: 1 DIF: D REF: p. 47


NAT: AACSB: Analytic, Creation of Value

15. The trade deficit(thâm hụt) can be attributed to


a. the preference for Americans to purchase lower-priced goods
b. increase in the price of imported petroleum products..
c. the preference to take vacations in foreign countries.
d. all of the choices

ANS: D PTS: 1 DIF: D REF: p. 47


NAT: AACSB: Analytic, Creation of Value

16. The symptoms(triệu chứng) of culture shock usually stem from


a. an intense dislike for foreign cultures.
b. an electrifying experience in another country.
c. being abruptly placed in a foreign culture.
d. being forced to learn a foreign language quickly.

ANS: C PTS: 1 DIF: E REF: p. 50


NAT: AACSB: Diversity, Individual Dynamics

17. A major problem for the international business manager is


a. converting currency from one country to another.
b. revenue lost due to pirating in other countries.
c. finding countries with a large enough consumer base.
d. finding Spanish-speaking workers in the United States.

ANS: B PTS: 1 DIF: M REF: p. 51


NAT: AACSB: Ethics, Legal Responsibilities

18. A key feature(tính năng) of the global startup is that it


a. deposits its receipts in a Swiss bank.
b. begins business as an international company.
c. begins operations as an import-export company.
d. avoids many taxes by beginning offshore.

ANS: B PTS: 1 DIF: E REF: p. 54


NAT: AACSB: Analytic, Strategy

19. A success factor for businesses in the global marketplace is to


a. think globally, act locally.
b. diversify into quite different product markets.
c. staff most key positions with people from your own country.
d. conduct almost all business in English.

ANS: A PTS: 1 DIF: E REF: p. 54


NAT: AACSB: Diversity, Creation of Value

20. A major success factor in building a business in another country is


a. to hire citizens from the United States.
b. to judge candidates based on U.S. perceptions and criteria.
c. to sell American products.
d. to hire talented citizens of that country to fill important positions.

ANS: D PTS: 1 DIF: D REF: p. 55


NAT: AACSB: Diversity, HRM

21. Diversity refers to


a. people with different group identities within the same work
environment
b. developing the right foreign language skill.
c. Acquiring valid information about the firm’s target market.
d. reducing the trade deficit.

ANS: A PTS: 1 DIF: E REF: p. 59


NAT: AACSB: Diversity, Group Dynamics

22. English is the official language of business because


a. diversity training has not been implemented in many companies.
b. the Internet and information technology place a heavy emphasis on
English.
c. American companies have an ethnocentric point of view.
d. Everyone in the world speaks English.

ANS: B PTS: 1 DIF: M REF: p. 67


NAT: AACSB: Communication, Information Technologies

23. Diversity training sessions


a. focus on the ways that men and women reflect different values and
attitudes.
b. focus on the ways that people of different races reflect different
cultural backgrounds.
c. focus on entering international markets.
d. both a & b

ANS: D PTS: 1 DIF: D REF: p. 66


NAT: AACSB: Diversity, HRM

24. Which one of the following is the least likely to be an advantage of cultural
diversity to the organization?
a. The company gains a marketing advantage, including increased sales and profits.
b. The company is able to recruit a wider range of talented people.
c. The company does not have to deal with different perspectives, thereby slowing
down problem solving.
d. The company advertising reduces the number of cultural bloopers and hidden
biases.

ANS: C PTS: 1 DIF: M REF: pp. 62-63


NAT: AACSB: Diversity, Strategy

25. With respect to diversity, an employee network group consists of


a. Members of the same buddy group for instant messaging.
b. Company employees who band together to bring complaints to
management.
c. Members of the same diversity training group.
d. Company employees who affiliate on the basis of a demographic or
cultural identity.
ANS: D PTS: 1 DIF: E REF: p. 65
NAT: AACSB: Diversity, Group Dynamics

CHAPTER 4—ESSENTIALS OF PLANNING

MULTIPLE CHOICE

1. Planning is
a. a complex and comprehensive process involving interrelated stages.
b. organizing, implementing, and controlling.
c. finding the best person for a job.
d. communicating effectively with stakeholders.

ANS: A PTS: 1 DIF: M REF: p. 118


NAT: AACSB: Analytic, Strategy

2. Strategic plans are designed to


a. implement operational plans.
b. establish day-by-day procedures.
c. shape the destiny of the firm.
d. carrying out the functions of management.

ANS: C PTS: 1 DIF: E REF: p. 118


NAT: AACSB: Analytic, Strategy

3. The purpose of tactical(chien thuat) planning is to


a. establish a general purpose for the organization.
b. translate strategic plans into specific goals and plans for organizational
units.
c. tell entry level workers what to do on a daily basis.
d. compensate for past mistakes.
ANS: B PTS: 1 DIF: E REF: p. 118
NAT: AACSB: Analytic, Strategy

4. Branch manager Hector establishes recycling goals for his branch(chi nhanh) to
support the company's strategic goal of being a good environmental partner. What
is Hector doing?
a. tactical planning
b. strategic planning
c. long-range planning
d. vision formulation

ANS: A PTS: 1 DIF: M REF: p. 118


NAT: AACSB: Reflective Thinking, Strategy

5. A study of CEO failure indicated that 70 percent of the time their failures were
attributed(dc cho la) to
a. poorly developed plans.
b. poor execution, not poor planning.
c. over-ambitious plans.
d. lack of adequate cost controls.

ANS: B PTS: 1 DIF: M REF: p. 121


NAT: AACSB: Reflective Thinking, Strategy

6. A manager controls the plan when he or she


a. creates a vision statement.
b. creates a mission statement.
c. establishes a budget to pay for the action plan.
d. checks to see how well goals are being attained.

ANS: D PTS: 1 DIF: M REF: p. 122


NAT: AACSB: Reflective Thinking, Operations Management

7. A contingency(du phong) plan is implemented(conduct) if the


a. strategic plan is too modest.
b. control processes do not work.
c. original plan cannot be implemented.
d. action plan succeeds.

ANS: C PTS: 1 DIF: E REF: p. 122


NAT: AACSB: Analytic, Strategy

8. Which one of the following is a component(thanh phan) of true business strategy?


a. a high level of operational effectiveness
b. a set of activities common to other firms
c. giving customers trade-offs
d. having quite different activities to make similar products for different
markets

ANS: C PTS: 1 DIF: M REF: p. 124


NAT: AACSB: Analytic, Strategy

9. A key difference between a vision(tam nhin) and a mission is that


a. the mission relates more to today's realities.
b. a mission is set farther into the future.
c. a vision does not deal with products or services.
d. a vision deals more with operations.

ANS: A PTS: 1 DIF: E REF: p. 126


NAT: AACSB: Analytic, Strategy

10. A recommended procedure(thu tuc) for formulating(build) strategy is for top-level


managers to
a. form a small committee to do most of the work.
b. gather inputs from large numbers of people.
c. perform the task themselves during a retreat.
d. base strategy on fixing customer complaints.

ANS: B PTS: 1 DIF: D REF: p. 127


NAT: AACSB: Analytic, Strategy

11. The purpose of the strategic inventory(hang ton kho) is to help the manager
a. size up the environment accurately.
b. determine how much inventory is on hand.
c. involve workers at all levels in formulating strategy.
d. develop operating plans.

ANS: A PTS: 1 DIF: D REF: p. 129


NAT: AACSB: Analytic, Leadership Principles

12. Which one of the following strategies should be classified as a business-level


strategy?
a. strategic alliances
b. diversification of goods and services
c. product differentiation
d. sticking to core competencies

ANS: C PTS: 1 DIF: E REF: p. 136


NAT: AACSB: Analytic, Strategy

13. The purpose of a SWOT analysis is to assess


a. strengths, weaknesses, opportunities, and threats.
b. strategy, weaknesses, options, and time.
c. satisfactions, worst options, and trade-offs.
d. successes, winners, and ominous threats.

ANS: A PTS: 1 DIF: E REF: p. 130


NAT: AACSB: Analytic, Strategy

14. Which one of the following is not one of the five competitive forces that business
strategists are supposed to take into account?
a. competition among business units within the firm
b. the power of customers to affect pricing and reduce profit margins
c. the threat of similar or substitute products
d. the power of suppliers to influence the company's pricing

ANS: A PTS: 1 DIF: M REF: p. 134


NAT: AACSB: Analytic, Strategy

15. The firm's purpose and where it fits into the world is identified by the
a. strategy.
b. policy.
c. mission.
d. objective.

ANS: C PTS: 1 DIF: E REF: p. 126


NAT: AACSB: Analytic, Strategy

16. McDonald's states that it would like "to satisfy the world's appetite for good food,
well-served, at a price people can afford." The preceding reflects McDonald's
a. cost-leadership strategy.
b. mission.
c. annual goal statement.
d. advertising campaign.

ANS: B PTS: 1 DIF: D REF: p. 126


NAT: AACSB: Reflective Thinking, Creation of Value

17. Krispy Kreme donuts, a well-known donut retailer (but much smaller than Dunkin
Donuts), most likely emphasizes which one of the following business strategies?
a. cost leadership
b. product differentiation
c. strategic alliances
d. high speed

ANS: B PTS: 1 DIF: M REF: p. 136


NAT: AACSB: Analytic, Strategy

18. When two pharmaceutical firms get together to market a drug, their strategy is
referred to as
a. high speed.
b. cost leadership.
c. product differentiation.
d. a strategic alliance.

ANS: D PTS: 1 DIF: M REF: p. 135


NAT: AACSB: Reflective Thinking, Strategy
19. Suppose that Starbucks opens a nation-wide chain of carwashes, called Starbucks
Car Wash. After two years, the executive team sells of the car washes, and invests
the cash back into building more Starbucks stores. The strategy illustrated is
referred to as
a. high speed.
b. sticking to core competencies.
c. product diversification.
d. a strategic alliance.

ANS: B PTS: 1 DIF: M REF: p. 136


NAT: AACSB: Analytic, Strategy

20. A functional strategy for becoming and remaining a successful organization is to


a. form a strategic alliance.
b. find and retain competent people.
c. get to market faster than others.
d. export products.

ANS: B PTS: 1 DIF: M REF: p. 137


NAT: AACSB: Reflective Thinking, Strategy

21. Assume that Motorola developed a cell and camera phone so small it comes with a
strap to wear on the wrist like a watch. Which strategy does this product launch
most likely fit?
a. cost leadership
b. product differentiation
c. Focus
d. high speed

ANS: B PTS: 1 DIF: M REF: p. 136


NAT: AACSB: Reflective Thinking, Strategy

22. Save-A-Lot has become one of the most successful grocery chains by serving the
poor and offering low prices. This is an example of
a. focus strategy.
b. premium pricing.
c. product differentiation
d. cost leadership
ANS: D PTS: 1 DIF: M REF: p. 137
NAT: AACSB: Reflective Thinking, Strategy

23. Policies serve as guidelines to action


a. that still allow for some interpretation.
b. that must be followed quite strictly.
c. for workers below the top-management level.
d. mostly in the areas of finance and human resources.

ANS: A PTS: 1 DIF: M REF: p. 140


NAT: AACSB: Analytic, Strategy

24. Management by objectives (MBO) includes


a. reviewing group members’ proposals.
b. creating action plans to achieve objectives.
c. establishing unit objectives.
d. all of the choices.

ANS: D PTS: 1 DIF: M REF: pp. 142-143


NAT: AACSB: Analytic, HRM

25. Part of Domino’s Pizza’s original success was based on getting pizzas delivered
more quickly than competitors. This strategy is called
a. strategic planning
b. cost leadership
c. focus.
d. high speed

ANS: D PTS: 1 DIF: E REF: p. 138


NAT: AACSB: Reflective Thinking, Strategy

CHAPTER 6—QUANTITATIVE TECHNIQUES FOR PLANNING AND DECISION


MAKING

MULTIPLE CHOICE
1. Juanita is a data-driven manager, so she
a. minimizes interaction with people when working.
b. bases her decisions on facts.
c. finely tunes her intuition.
d. emphasizes politics in her decision making.

ANS: B PTS: 1 DIF: E REF: p. 194


NAT: AACSB: Analytic, Motivation Concepts

2. Richard is a data-driven manager, so he tells subordinates,


a. "Don't politic, use data."
b. "Politic, don't use data."
c. "Pay for your own lunch while on a business trip."
d. "Donate 10 percent of your gross income to charity."

ANS: A PTS: 1 DIF: M REF: p. 195


NAT: AACSB: Reflective Thinking, Strategy

3. A judgmental forecast is
a. based on a collection of subjective opinions..
b. a qualitative forecasting method.
c. both a & b
d. a quantitative forecasting method.

ANS: C PTS: 1 DIF: M REF: p. 197


NAT: AACSB: Analytic, Strategy

4. A major reason that forecasting is so important in business is that


a. customers often demand forecasts before they purchase equipment.
b. forecasts accurately describe a company's history.
c. forecasts are good for spotting errors in current operations.
d. spotting trends can give you an edge over the competition.

ANS: D PTS: 1 DIF: E REF: p. 195


NAT: AACSB: Reflective Thinking, Strategy

5. The results of a time-series analysis are best represented by a(n)


a. equation with two variables.
b. chart or graph showing past trends and predicted future trends.
c. verbal summary of expert opinions.
d. pie chart of the various components of the analysis.

ANS: B PTS: 1 DIF: D REF: p. 198


NAT: AACSB: Analytic, Strategy

6. CEO Maria is so convinced that company sales will triple, that she commits the
company to lavish new expenses without making contingency plans if the sales
growth does not take place. Maria might be falling into the
a. prudence trap.
b. overconfidence trap.
c. recallability trap.
d. subjective thinking trap.

ANS: B PTS: 1 DIF: E REF: p. 198


NAT: AACSB: Analytic, Strategy

7. The World Future Society predicts that 100 million people with telecommute by the
year 2015, illustrating a(n) ____ forecast.
a. Economic
b. Sales
c. Technological
d. Doomsday

ANS: A PTS: 1 DIF: M REF: p. 199


NAT: AACSB: Reflective Thinking, Strategy

8. The two major variables considered by Gantt charts and milestone charts are
a. planned and actual work.
b. past and present.
c. time and motion.
d. price and cost.

ANS: A PTS: 1 DIF: E REF: p. 202


NAT: AACSB: Analytic, Strategy

9. The numbers in a PERT network refer to the


a. amount of time consumed by events.
b. completion date for projects.
c. time required to complete activities between events.
d. average of the optimistic and pessimistic times.

ANS: C PTS: 1 DIF: D REF: p. 206


NAT: AACSB: Analytic, Strategy

10. The critical path is the path through the PERT network with the
a. shortest completion time.
b. longest completion time.
c. most probable time.
d. pessimistic time.

ANS: B PTS: 1 DIF: M REF: p. 206


NAT: AACSB: Analytic, Strategy

11. With a more refined application of PERT, the optimistic, pessimistic, and most
probable times should be based on
a. Bureau of Labor Statistics estimates.
b. the intuition of someone new to the task.
c. the intuition of a well-experienced worker.
d. a frequency distribution of estimates.

ANS: D PTS: 1 DIF: D REF: p. 207


NAT: AACSB: Analytic, Creation of Value

12. In addition to estimating the time required for activities, advanced applications of
PERT estimate the
a. job satisfaction associated with the task.
b. amount of resources to needed to accomplish the job.
c. productivity bonuses paid to workers who finish on schedule.
d. starting day of the project.

ANS: B PTS: 1 DIF: E REF: p. 208


NAT: AACSB: Strategy

13. The break-even point occurs when


a. fixed costs and fixed revenues are equal.
b. variable costs and variable revenues are equal.
c. the units produced equal the units sold.
d. total costs and total revenues are equal.

ANS: D PTS: 1 DIF: E REF: p. 209


NAT: AACSB: Analytic, Creation of Value

14. Break-even analysis indicates the ____ that will be necessary to justify a new
expense.
a. increase in sales.
b. increase in costs.
c. amount of profit.
d. volume of activity.

ANS: A PTS: 1 DIF: M REF: p. 209


NAT: AACSB: Analytic, Creation of Value

15. Fixed cost in break-even analysis refers to the cost that


a. remains constant no matter how many units are produced.
b. covers the initial capital expenditures.
c. covers everything but employee compensation.
d. declines after the break-even point has been reached.

ANS: A PTS: 1 DIF: E REF: p. 210


NAT: AACSB: Analytic, Creation of Value

16. A decision tree graphically depicts


a. the alternative solutions available to solve a problem.
b. cause and effect relationships.
c. how much inventory to keep on hand.
d. the states of nature.

ANS: A PTS: 1 DIF: E REF: p. 211


NAT: AACSB: Analytic, Creation of Value

17. An expected value for a decision tree is the value you would expect if
a. you calculated how much revenue is needed to break even.
b. your business were sold within 30 days.
c. a particular decision is made a large number of times.
d. you took a poll of what people want.

ANS: C PTS: 1 DIF: E REF: p. 211


NAT: AACSB: Analytic, Creation of Value

18. A decision tree is considered particularly useful in


a. evaluating costs over the life of a project.
b. making a sequence of decisions.
c. estimating the length of time required to achieve given return on
investment.
d. determining when to drop a product line.

ANS: B PTS: 1 DIF: M REF: p. 211


NAT: AACSB: Analytic, Strategy

19. The economic-order quantity (EOQ) suggests the


a. right size orders to take.
b. break-even point for storing inventory.
c. break-even point for sales orders.
d. right amount of inventory to store.

ANS: D PTS: 1 DIF: M REF: p. 213


NAT: AACSB: Analytic, Operations Management

20. Under a just-in-time inventory system, inventory is moved into a plant as soon as
a. the supplier can deliver.
b. the manufacturer has shelf space.
c. it can be bought at the right price.
d. it is needed.

ANS: D PTS: 1 DIF: E REF: p. 213


NAT: AACSB: Analytic, Operations Management

21. Just-in-time inventorys often referred to


a. supply-chain management
b. as lean manufacturing because waste of “fat” is minimized.
c. operations management.
d. as custom manufacturing.

ANS: B PTS: 1 DIF: M REF: p. 214


NAT: AACSB: Analytic, Operations Management

22. The just in time system of inventory control relies on


a. cards, to communicate production requirements from the final point of
assembly to the manufacturing operations that precede it.
b. kanbans
c. both a & b
d. shipping directly from suppliers.

ANS: C PTS: 1 DIF: D REF: p. 214


NAT: AACSB: Analytic, Operations Management

23. Under the inventory system, FIFO, you sell


a. by shipping directly from one of your suppliers.
b. the first goods you obtained last
c. the last goods you obtained first.
d. the first goods you obtained first.

ANS: D PTS: 1 DIF: E REF: p. 216


NAT: AACSB: Analytic, Strategy

24. Sell the most recently received items first is called


a. FIFO
b. JIT
c. LIFO
d. Wholesaling

ANS: C PTS: 1 DIF: E REF: p. 216


NAT: AACSB: Analytic, Creation of Value

25. A Pareto diagram is


a. an inventory method
b. a bar graph that ranks types of output variations by frequency of
occurrence.
c. a forecasting tool.
d. a scenario for the future

ANS: B PTS: 1 DIF: D REF: p. 217


NAT: AACSB: Analytic, Operations Management

CHAPTER 7—JOB DESIGN AND WORK SCHEDULES

MULTIPLE CHOICE

1. Marvin's job involves selling used trucks. To boost his job satisfaction, Marvin's
boss authorizes him to tell the dealer when a truck needs a paint job in order to sell.
Which task characteristic has been added to Marvin's job?
a. feedback from the job
b. decision-making authority
c. work methods autonomy
d. task significance

ANS: B PTS: 1 DIF: M REF: p. 228


NAT: AACSB: Analytic, Creation of Value

2. A job contains high task significance when the


a. work output touches the lives of many people.
b. work output earns a profit for the firm.
c. job holder has varied working hours.
d. job holder receives frequent feedback from the boss.

ANS: A PTS: 1 DIF: M REF: p. 228


NAT: AACSB: Analytic, Creation of Value

3. Airplane mechanic Clyde tells his boss, "This job is killing my back. Crawling into
small places every day is more than I can tolerate." Which job sub-dimension is
Clyde complaining about?
a. Ergonomics
b. Interdependence
c. skill variety
d. work methods autonomy
ANS: A PTS: 1 DIF: M REF: p. 230
NAT: AACSB: Analytic, Environmental Influence

4. A job description is a written statement of the


a. key features of a job.
b. qualifications necessary to fill a job.
c. design features of a job.
d. degree of specialization within a job.

ANS: A PTS: 1 DIF: E REF: p. 233


NAT: AACSB: Analytic, Strategy

5. A major benefit of job specialization is that it allows for


a. a flexible work force.
b. enrichment of virtually all jobs.
c. excellent coordination of contributors to a total job.
d. the development of expertise at all occupational levels.

ANS: D PTS: 1 DIF: D REF: pp. 231-232


NAT: AACSB: Reflective Thinking, Operations Management

6. An enriched job typically includes the element of


a. control over resources.
b. indirect communication authority.
c. routine experiences.
d. limited personal accountability.

ANS: A PTS: 1 DIF: M REF: p. 235


NAT: AACSB: Analytic, Operations Management

7. Control over method in job enrichment means that the worker


a. communicates directly with the client or customer.
b. must present to management an analysis of the best method.
c. chooses the method to accomplish the assigned task.
d. must try a new method for accomplishing the task.

ANS: C PTS: 1 DIF: E REF: p. 235


NAT: AACSB: Analytic, Individual Dynamics

8. In the job characteristics model, the task dimension of autonomy leads to


a. skill variety.
b. a feeling of meaningfulness.
c. a feeling of responsibility for work outcomes.
d. job satisfaction.

ANS: C PTS: 1 DIF: D REF: p. 236


NAT: AACSB: Reflective Thinking, Individual Dynamics

9. Before implementing a program of job enrichment it is recommended that the


manager
a. grant immediate pay increases.
b. find out if employees want an enriched job.
c. rewrite job descriptions for all employees involved.
d. empower employees to enrich their own jobs.

ANS: B PTS: 1 DIF: M REF: p. 237


NAT: AACSB: Communication, Individual Dynamics

10. Workers with high job involvement will


a. identify psychologically with their work.
b. involve others in getting their work done.
c. separate their self-image from their work.
d. search for horizontal job loading.

ANS: A PTS: 1 DIF: E REF: p. 237


NAT: AACSB: Analytic, Individual Dynamics

11. Zeke is in charge of stocking shelves in the soft-drink aisle in a supermarket. To


apply job enlargement, the store manager might
a. allow Zeke to do market research about soft-drink consumption.
b. schedule Zeke to switch back and forth between stocking the soft-drink
and pet-food aisles.
c. give Zeke the additional permanent assignment of also stocking the
dry-cereal section.
d. assign Zeke flexible working hours.

ANS: C PTS: 1 DIF: D REF: p. 237


NAT: AACSB: Analytic, HRM

12. Priscilla, a customer service representative at a call center, adds to her job by asking
customers how much they liked their previous purchase. Priscilla is engaged in job
a. simplification.
b. rotation.
c. crafting.
d. specialization.

ANS: C PTS: 1 DIF: D REF: p. 237


NAT: AACSB: Analytic, Creation of Value

13. Job embeddedness refers to


a. the array of forces attaching people to their jobs.
b. the physical and mental changes individuals make in the task or
relationship aspects of their job.
c. a temporary switching of job assignments.
d. increasing the number and variety of tasks within a job.

ANS: A PTS: 1 DIF: M REF: p. 241


NAT: AACSB: Analytic, Environmental Influence

14. Which one of the following is not a common type of job crafting? Making changes
in
a. the pay structure of a job.
b. the number and types of job tasks.
c. the interactions with others on the job.
d. one's view of a job.

ANS: A PTS: 1 DIF: M REF: p. 241


NAT: AACSB: Analytic, HRM
15. Which of the following is the least effective method for preventing cumulative
trauma disorder?
a. use the computer mouse whenever possible
b. rotate jobs to reduce repetitive hand and body movements
c. install equipment that minimizes awkward hand and body movements
d. use voice recognition systems as a substitute for keyboarding

ANS: A PTS: 1 DIF: M REF: p. 243


NAT: AACSB: Technology, Information Technology

16. An experiment about noise levels with female clerical workers demonstrated that
the workers exposed to noise
a. increased their productivity levels.
b. capitalized more on ergonomic features of their work furniture.
c. experienced inner-ear damage.
d. developed high levels of stress hormones in the blood.

ANS: D PTS: 1 DIF: D REF: p. 245


NAT: AACSB: Analytic, Individual Dynamics

17. A modified work schedule


a. is any formal departure from the traditional hours of work.
b. excludes shift work and staggered work hours.
c. both a & b
d. leads to ergonomic problems.

ANS: C PTS: 1 DIF: M REF: p. 245


NAT: AACSB: Analytic, HRM

18. A study showed that a major reason why employees are hesitant to use the flextime
option is that they
a. are concerned about appearing uncommitted to work.
b. dislike starting work so early.
c. dislike staying so late at work.
d. cannot afford the reduction in pay.

ANS: A PTS: 1 DIF: M REF: pp. 246-247


NAT: AACSB: Reflective Thinking, Individual Dynamics
19. A potential disadvantage of telecommuting is that workers at home are likely to
a. work on weekends.
b. face distractions at home.
c. feel isolation from coworkers.
d. feel exploited.

ANS: C PTS: 1 DIF: M REF: p. 250


NAT: AACSB: Reflective Thinking, HRM

20. Job sharing is a work arrangement in which


a. two people who work part-time share one job.
b. salary and benefits are prorated for the half-time workers.
c. both a & b
d. employees work from home.

ANS: C PTS: 1 DIF: M REF: p. 251


NAT: AACSB: Analytic, HRM

21. High-performance work system is a way of organizing work so that


a. jobs are enlarged
b. front-line workers participate in decisions that have an impact on their
jobs and the wider organization.
c. jobs are rotated.
d. telecommuting can take place.

ANS: B PTS: 1 DIF: M REF: p. 255


NAT: AACSB: Analytic, HRM

22. According to the policy of job sharing,


a. high-paid workers share pay with low-paid workers.
b. workers without an office share get to use the offices of those
belonging to managers.
c. two part-time workers share one job.
d. workers delegate work to those lower in rank.

ANS: C PTS: 1 DIF: E REF: p. 251


NAT: AACSB: Analytic, HRM
23. Contingent workers
a. share jobs with other employees.
b. are only hired when they are needed.
c. always work less than 40 hours per week.
d. work for more than one employer at a time.

ANS: B PTS: 1 DIF: M REF: p. 253


NAT: AACSB: Analytic, HRM

24. A major characteristic of a high-performance work system in a manufacturing


environment is that
a. workers are allowed limited rest breaks.
b. time and motion studies dictate work methods.
c. supervisors make all the important decisions.
d. workers participate in making decisions that have an impact.

ANS: D PTS: 1 DIF: E REF: p. 255


NAT: AACSB: Analytic, HRM

25. According to the method of creating high-performance jobs by adjusting resources,


bookkeeper Pam will perform at her best when she
a. gets paid more than most bookkeepers.
b. creates her own resources.
c. gets all the resources she needs to do her job.
d. consults regularly with a human resources specialist.

ANS: C PTS: 1 DIF: D REF: p. 256


NAT: AACSB: Analytic, Strategy

CHAPTER 8—ORGANIZATION STRUCTURE, CULTURE, AND CHANGE

MULTIPLE CHOICE
1. The clearest example of a staff department in a manufacturing(chế tạo) organization
would be
a. sales.
b. operations.
c. food services.
d. quality assurance.

ANS: C PTS: 1 DIF: D REF: p. 267


NAT: AACSB: Analytic, Operations Management

2. One of the reasons that bureaucracies(bộ máy hành chính) have endured(chịu đựng)
is that they
a. provide ample opportunity for risk taking and thrill seeking.
b. help satisfy people's need for order and security.
c. were designed with the age of the Internet in mind.
d. are almost immune to downsizing.

ANS: B PTS: 1 DIF: M REF: p. 267


NAT: AACSB: Analytic, Individual Dynamics

3. A notable disadvantage of a bureaucracy is that it often leads to


a. unclear managerial responsibility.
b. rigidity in dealing with people.
c. an insufficient amount of rules and regulations.
d. wide of span of control.

ANS: B PTS: 1 DIF: E REF: p. 268


NAT: AACSB: Analytic, Operations Management

4. The organization structure best suited to gaining the advantage of specialization is


____ departmentalization.
a. Functional
b. Geographic
c. Product
d. Matrix

ANS: A PTS: 1 DIF: M REF: p. 270


NAT: AACSB: Analytic, Operations Management
5. A disadvantage of product-service departmentalization is that
a. customer needs may be neglected.
b. field units lack authority.
c. it often leads to duplication of effort.
d. employees rarely identify with the field units.

ANS: C PTS: 1 DIF: M REF: p. 274


NAT: AACSB: Analytic, Creation of Value

6. A key advantage of geographic departmentalization is that it allows for


a. decision making at a local level
b. consideration of the local culture.
c. a & b
d. a one size fits all strategy

ANS: C PTS: 1 DIF: D REF: p. 272


NAT: AACSB: Analytic, Strategy

7. A matrix organization can be described as a(n) ____ structure superimposed on a


____ structure.
a. project; functional
b. product; territorial
c. process; product
d. informal; formal

ANS: A PTS: 1 DIF: E REF: p. 275


NAT: AACSB: Analytic, Strategy

8. A wide span of control is advised when


a. there is considerable flux in the work setting.
b. group members perform similar tasks.
c. group members are physically dispersed.
d. group members and the manager are highly capable.

ANS: D PTS: 1 DIF: M REF: p. 277


NAT: AACSB: Analytic, Operations Management
9. Downsizing(thu hẹp) is the most likely to be successful when
a. high-value activity is eliminated first.
b. information about the pending layoff is held back from employees.
c. it is part of the business strategy to improve the company.
d. it is a stopgap measure to save the company money.

ANS: C PTS: 1 DIF: D REF: p. 278


NAT: AACSB: Analytic, Strategy

10. Companies such as Dell purchase complete designs for some digital devices from
Asian developers. This is called
a. division of labor
b. Outsourcing
c. Implementing
d. scenario planning

ANS: B PTS: 1 DIF: M REF: p. 278


NAT: AACSB: Analytic, Strategy

11. You know that you are a homesourcing agent when you
a. perform call center duties out of your home.
b. sell products from door to door.
c. organize parties in your home to sell products.
d. work in a large call center responding to problems with consumer
products.

ANS: A PTS: 1 DIF: M REF: p. 279


NAT: AACSB: Reflective Thinking, Operations Management

12. An example of a horizontal organization structure would be a


a. department producing an engine.
b. team assembling components for company machines.
c. purchasing department.
d. team responsible for filling orders.

ANS: D PTS: 1 DIF: M REF: p. 280


NAT: AACSB: Analytic, Strategy
13. The radical redesign of work to achieve substantial improvements in performance is
called:
a. Reengineering
b. job design
c. Downsizing
d. resistance to change

ANS: A PTS: 1 DIF: E REF: p. 281


NAT: AACSB: Analytic, Strategy

14. To become part of the informal organization structure, you should


a. study the company organization chart carefully.
b. become a temporary worker.
c. send your résumé to key managers.
d. establish a network of contacts to help you accomplish work.

ANS: D PTS: 1 DIF: D REF: p. 281


NAT: AACSB: Reflective Thinking, Strategy

15. Flexible organization structures, such as project and matrix structures, are the most
likely to be found in
a. high-technology firms.
b. lumber mills.
c. pasta factories.
d. poultry processing plants.

ANS: A PTS: 1 DIF: E REF: p. 285


NAT: AACSB: Technology, Strategy

16. A suggestion for effective delegation is to


a. delegate part of a task.
b. give as much instruction as needed.
c. closely monitor the details.
d. assign the task to the highest-ranking company official.

ANS: B PTS: 1 DIF: E REF: p. 287


NAT: AACSB: Analytic, Strategy
17. Long John Silver’s central headquarters exercises tight control over such matters as
menu selection; however, franchises make human resource decisions such as hiring.
This is an example of
a. Centralization
b. Decentralization
c. Specialization
d. centralization and decentralization

ANS: D PTS: 1 DIF: D REF: p. 288


NAT: AACSB: Analytic, Operations Management

18. The foundation of an organizational culture is the organization's


a. relative diversity.
b. values.
c. resource allocation and rewards.
d. degree of change.

ANS: B PTS: 1 DIF: E REF: p. 289


NAT: AACSB: Analytic, Creation of Value

19. The dimension or organization culture called a sense of ownership, typically comes
about when
a. the company helps employees purchase houses.
b. employees develop pride in the company.
c. the company helps employees get out of debt.
d. employees purchase stock in the company.

ANS: D PTS: 1 DIF: E REF: p. 291


NAT: AACSB: Analytic, Individual Dynamics

20. The primary way that employees learn the organization culture is through
a. the process of socialization.
b. studying the company Website.
c. studying the company intranet.
d. making mistakes and then being corrected.

ANS: A PTS: 1 DIF: E REF: p. 291


NAT: AACSB: Analytic, Group Dynamics
21. The right organizational culture can enhance
a. productivity, quality, and morale.
b. person-organization fit.
c. competitive advantage.
d. all of the choices

ANS: D PTS: 1 DIF: D REF: p. 293


NAT: AACSB: Analytic, Creation of Value

22. CEO Justin wants to sustain the company's culture. One of the recommended
actions he can take is to
a. suggest that employees decide on their own culture.
b. bring outsiders into the company whose values clash with the
company's culture.
c. include a statement of the company's desired culture in the annual
report.
d. serve as a role model for the desired attitudes and behaviors.

ANS: D PTS: 1 DIF: M REF: p. 294


NAT: AACSB: Analytic, Leadership Principles

23. A recommended technique for gaining support for change is to


a. discuss and negotiate sensitive issues.
b. figure out what to do as one goes along.
c. discourage worker participation in the changes.
d. avoid discussion about financial consequences.

ANS: A PTS: 1 DIF: M REF: p. 298


NAT: AACSB: Analytic, Strategy

24. An important emphasis of a Six Sigma program is to


a. prevent problems.
b. punish employees who perform sloppy work.
c. minimize the behavioral aspects of achieving high quality.
d. base quality standards on individual differences.

ANS: A PTS: 1 DIF: E REF: p. 300


NAT: AACSB: Analytic, Operations Management

25. In the Model for Change, ______________involves reducing or eliminating


resistance to change.
a. Refreezing
b. Changing
c. Thawing
d. Unfreezing .

ANS: D PTS: 1 DIF: M REF: p. 296


NAT: AACSB: Analytic, Strategy

CHAPTER 9—STAFFING AND HUMAN RESOURCE MANAGEMENT

MULTIPLE CHOICE

1. Human resources executive Sarah says, "I finally have a seat at the table." She most
likely is implying that
a. she is allowed into the executive dining room.
b. her work is tied in with company business strategy.
c. she no longer has to stand in the back of the room during meetings.
d. she will be allowed to negotiate with the labor union.

ANS: B PTS: 1 DIF: E REF: p. 310


NAT: AACSB: Reflective Thinking, HRM

2. A specific way in which human resources contributes to business strategy is by


a. helping to build high-performance work practices.
b. organizing company picnics.
c. making PowerPoint presentations to top management.
d. helping to prepare job descriptions.

ANS: A PTS: 1 DIF: M REF: p. 311


NAT: AACSB: Reflective Thinking, HRM

3. An example of a workplace factor that could lead to turnover is


a. a booming economy with many job opportunities.
b. a worker's limited ability to cope with the job demands.
c. job-hopping tendencies of the worker.
d. lack of emotional support from the supervisor.

ANS: D PTS: 1 DIF: M REF: p. 313


NAT: AACSB: Analytic, Environmental Influence

4. According to the theory of job imbeddedness, whether employees stay with a firm
depends on
a. how long a worker has held the job.
b. how well the employee is liked by coworkers.
c. a variety of factors on and off the job.
d. the worker's demographic characteristics.

ANS: C PTS: 1 DIF: E REF: p. 313


NAT: AACSB: Analytic, Individual Dynamics

5. An affirmative action program must comply with anti-discrimination law and


a. create managerial opportunities for minorities and women.
b. change employee attitudes about discrimination.
c. increase minority hiring by 40 percent.
d. increase minority pay by 40 percent.

ANS: A PTS: 1 DIF: M REF: p. 314


NAT: AACSB: Diversity, HRM

6. According to federal laws prohibiting discrimination, it is illegal to discriminate


against people
a. in any aspect of employment.
b. mostly with respect to hiring.
c. mostly with respect to transfer, promotion, layoff, or recall.
d. mostly with respect to recruitment and testing.

ANS: A PTS: 1 DIF: D REF: p. 315


NAT: AACSB: Ethics, Legal Responsibilities
7.The general purpose of strategic human resource planning is to
a. develop selection systems to meet the needs of the firm.
b. control costs in carrying out the human resource function.
c. identify skills needed for the success of the business.
d. ensure that business strategy does not neglect people.

ANS: C PTS: 1 DIF: M REF: p. 316


NAT: AACSB: Reflective Thinking, HRM

8. Recruiting is the process of


a. attracting job candidates.
b. finding candidates with the right characteristics and skills to fill job
openings.
c. both a & b
d. training job candidates.

ANS: C PTS: 1 DIF: E REF: p. 317


NAT: AACSB: Analytic, HRM

9. A job specification describes the


a. working conditions encountered on the job.
b. pay and benefits associated with the job.
c. demands of the job.
d. qualifications needed for the job.

ANS: D PTS: 1 DIF: M REF: p. 318


NAT: AACSB: Analytic, HRM

10. Online recruiting


a. now accounts for about 80% of external hires.
b. occurs on social networking Web sites such as Facebook, LinkedIn,
and Twitter.
c. is considered discriminatory because they require computer literacy.
d. suffers from not attracting a large enough number of inquiries.

ANS: B PTS: 1 DIF: D REF: p. 319


NAT: AACSB: Technology, HRM
11. Much informal learning takes place
a. in meetings
b. on breaks
c. in customer interactions
d. all of the choices

ANS: D PTS: 1 DIF: M REF: p. 333


NAT: AACSB: Communication, Environmental Influence

12. A multicultural employee


a. is able to conduct business in another culture.
b. was raised in a multicultural environment.
c. speaks three or more languages fluently.
d. has experience working in other countries.

ANS: A PTS: 1 DIF: M REF: p. 320


NAT: AACSB: Diversity, Individual Dynamics

13. An example of a knock out question for a flight attendant would be


a. "Would you want a child of yours to be an airplane pilot?"
b. "Are you currently employed?"
c. "Who invented the airplane?"
d. "Are you afraid of flying?"

ANS: D PTS: 1 DIF: M REF: p. 321


NAT: AACSB: Communication, Strategy

14. All of the big five personality factors


a. are included in the Americans with Disabilities Act.
b. influence job performance.
c. are part of measuring the person-organization fit.
d. create job problems, if present.

ANS: B PTS: 1 DIF: M REF: p. 323


NAT: AACSB: Reflective Thinking, Individual Dynamics

15. The purpose of a realistic job preview is to give the job applicant a(n)
a. accurate picture of the potential problems within the job.
b. accurate picture of the earnings potential within the job.
c. thorough analysis of his or her perceived strengths.
d. thorough analysis of his or her perceived weaknesses.

ANS: A PTS: 1 DIF: E REF: p. 325


NAT: AACSB: Communication, HRM

16. Lucy applies for the position of ambulance medic. To give her a job simulation
screening test, the interviewer
a. asks her to say the alphabet backwards in three minutes.
b. has her stop the bleeding of an accident victim.
c. interviews her in an ambulance.
d. interviews her in an operating room.

ANS: B PTS: 1 DIF: D REF: p. 325


NAT: AACSB: Communication, HRM

17. E-learning, is least likely to be effective for teaching


a. financial ratios.
b. product information.
c. interpersonal skills.
d. software skills.

ANS: C PTS: 1 DIF: D REF: p. 331


NAT: AACSB: Technology, Individual Dynamics

18. A key advantage of delivering training content by MP3 players is that workers can
a. listen to music while being trained.
b. impress customers with how cool they look.
c. design their own training content.
d. receive training during spare moments.

ANS: D PTS: 1 DIF: M REF: p. 332


NAT: AACSB: Technology, Information Technologies

19. Performance, as measured in performance evaluation systems, appears to have the


three following components:
a. task performance, interpersonal performance, and mental performance
b. task performance, citizenship performance, and counterproductive
performance
c. past performance, present performance, and future performance
d. performance related to customers, the manager, and coworkers

ANS: B PTS: 1 DIF: D REF: p. 334


NAT: AACSB: Reflective Thinking, Strategy

20. Forced rankings


a. evaluate employees against a performance standard.
b. measure employees against one another.
c. select an outstanding performer.
d. both a & b.

ANS: D PTS: 1 DIF: M REF: p. 334


NAT: AACSB: Analytic, HRM

21. Performance evaluation methods are usually designed to measure


a. Traits
b. behavior.
c. results.
d. all of the choices

ANS: D PTS: 1 DIF: D REF: p. 335


NAT: AACSB: Analytic, HRM

22. 360-degree feedback is


a. a performance appraisal.
b. an evaluation using a sampling of all the people with whom an
employee interacts.
c. both a & b
d. a selection tool.

ANS: C PTS: 1 DIF: D REF: p. 335


NAT: AACSB: Analytic, HRM

23.
A ranking system that requires managers to rank each employee within each unit
and
distribute raises and bonuses accordingly is called
a. stack-ranking
b. 360-degree feedback
c. employee benefits
d. workman’s compensation

ANS: A PTS: 1 DIF: M REF: p. 338


NAT: AACSB: Analytic, Creation of Value

24. Under a variable pay system, workers receive some of their pay based on
a. demonstration of skills.
b. demonstration of competencies the company needs for its success.
c. number of years of employment.
d. actual job performance.

ANS: D PTS: 1 DIF: E REF: p. 337


NAT: AACSB: Analytic, HRM

25. A concern is that in some industries, union demands for compensation


a. include variable pay.
b. have made it difficult for companies to remain competitive.
c. include wellness clinics.
d. seek unfair treatment for workers.

ANS: B PTS: 1 DIF: D REF: p. 342


NAT: AACSB: Reflective Thinking, Environmental Influence

CHAPTER 10—LEADERSHIP

MULTIPLE CHOICE

1. In organizations, leadership can be exerted


a. by many people, as well as managers.
b. only by the top two levels of management.
c. only on permanent assignments.
d. by people with or without leadership capability.
ANS: A PTS: 1 DIF: M REF: p. 350
NAT: AACSB: Reflective Thinking, Leadership Principles

2. Management focuses on
a. continuous improvement of the status quo.
b. change that compels a group to innovate.
c. eliciting cooperation and teamwork.
d. having a vision

ANS: A PTS: 1 DIF: D REF: p. 351


NAT: AACSB: Reflective Thinking, Leadership Principles

3. Team members must identify with the leader in order for the leader to exercise ____
power.
a. Reward
b. Coercive
c. Legitimate
d. Referent

ANS: D PTS: 1 DIF: M REF: p. 353


NAT: AACSB: Analytic, Leadership Principles

4. A key aspect of leading by example is for the leader to


a. set high goals for group members.
b. be assertive with group members.
c. appeal to the rationality of group members
d. show a consistency between actions and words.

ANS: D PTS: 1 DIF: M REF: p. 354


NAT: AACSB: Reflective Thinking, Leadership Principles

5. Leading by values is similar to influencing people through


a. giving them rewards for good deeds.
b. the organization culture.
c. being assertive.
d. exchange of favors.
ANS: B PTS: 1 DIF: M REF: p. 354
NAT: AACSB: Ethics, Ethical Responsibilities

6. When a leader empowers employees, the leader accepts them as


a. part of his or her zone of indifference.
b. workers with higher rank than himself or herself.
c. partners in decision making.
d. leaders by example.

ANS: C PTS: 1 DIF: D REF: p. 357


NAT: AACSB: Reflective Thinking, Strategy

7. Mitch exercises self-leadership when he


a. leads himself to accomplish a difficult but important task.
b. asks for a raise outside of a performance evaluation meeting.
c. gets coworkers to recommend him for a promotion.
d. encourages coworkers to perform well.

ANS: A PTS: 1 DIF: M REF: p. 358


NAT: AACSB: Analytic, Individual Dynamics

8. Empowerment as a leadership technique


a. works better in some cultures than in others.
b. works in all cultures.
c. works to the extent that cultural values support power sharing.
d. both a & c

ANS: D PTS: 1 DIF: D REF: p. 358


NAT: AACSB: Diversity, Environmental Influence

9. A major characteristic of high achieving leaders is that they are


a. somewhat indifferent about the technology around them.
b. passionate about their work.
c. low on achievement motivation.
d. medium with respect to emotional intelligence.

ANS: B PTS: 1 DIF: M REF: p. 360


NAT: AACSB: Analytic, Individual Dynamics

10. For best results, the leader should combine self-confidence with
a. humility.
b. arrogance.
c. dishonesty.
d. a little sarcasm.

ANS: A PTS: 1 DIF: E REF: p. 360


NAT: AACSB: Analytic, Individual Dynamics

11. Under a policy of open-book management, workers are


a. expected to be totally honest with management.
b. exposed to financial details of the firm.
c. empowered to set their own wage rates.
d. expected to manage the financial aspects of their organizational units.

ANS: B PTS: 1 DIF: D REF: p. 361


NAT: AACSB: Communication, Strategy

12. Feedback is considered very important as a way of


a. influencing behavior.
b. developing charisma.
c. manipulating team members.
d. exerting coercive power.

ANS: A PTS: 1 DIF: M REF: p. 365


NAT: AACSB: Communication, Leadership Principles

13. Which one of the following is the least likely to be an effective leadership
behavior?
a. giving and receiving frequent feedback
b. setting high performance standards for group members
c. being the opposite of a servant leader
d. quick recovery from setbacks

ANS: C PTS: 1 DIF: M REF: p. 366


NAT: AACSB: Reflective Thinking, Leadership Principles
14. A major part of effective crisis leadership is for the leader to
a. present a plan for working out of the crisis.
b. point blame for the crisis in the right direction.
c. be excitable and angry.
d. delay decision making until a study of the crisis is completed.

ANS: A PTS: 1 DIF: E REF: p. 381


NAT: AACSB: Reflective Thinking, Leadership Principles

15. A major aspect of being a consensus leader is to


a. retain considerable decision-making authority.
b. hold group discussions before making a decision.
c. confer with group members individually.
d. take a vote before making a final decision.

ANS: B PTS: 1 DIF: M REF: p. 367


NAT: AACSB: Reflective Thinking, Leadership Principles

16. Soliciting suggestions for business improvement from front-line employees is an


example of ____ leadership.
a. Participative
b. Rational
c. Authoritarian
d. Charismatic

ANS: A PTS: 1 DIF: M REF: pp. 366-367


NAT: AACSB: Analytic, Leadership Principles

17. According to the Leadership Grid, which style of leadership leads to trust and
respect?
a. authoritarian management.
b. sound management.
c. extraverted management.
d. crisis management

ANS: B PTS: 1 DIF: D REF: p. 369


NAT: AACSB: Analytic, Leadership Principles
18. In Situational Leadership II, leaders adapt their behavior to the level of ____ and
____ of a particular subordinate on a given task.
a. intelligence, personality
b. competence, commitment
c. goals, motives
d. knowledge, experience

ANS: B PTS: 1 DIF: D REF: pp. 370-371


NAT: AACSB: Reflective Thinking, Leadership Principles

19. Situational Leadership II explains that effective leadership depends on two


independent behaviors:
a. delegating and empowering
b. trusting and believing
c. supporting and directing.
d. directing and coaching

ANS: C PTS: 1 DIF: D REF: p. 371


NAT: AACSB: Analytic, Leadership Principles

20. A notable characteristic of an entrepreneurial leader is a(n)


a. patient, plodding approach to problems.
b. passion for hierarchy and bureaucracy.
c. exceptional degree of enthusiasm.
d. exceptional degree of pessimism.

ANS: C PTS: 1 DIF: E REF: p. 373


NAT: AACSB: Analytic, Individual Dynamics

21. Transformations take place when the transformational leader


a. raises awareness of the importance of certain rewards.
b. helps people go beyond a focus on minor satisfactions.
c. gets people to look beyond self-interest.
d. all of the choices.

ANS: D PTS: 1 DIF: D REF: pp. 374-375


NAT: AACSB: Reflective Thinking, Leadership Principles
22. Charismatic leaders are able to
a. inspire others.
b. intimidate group members.
c. get coworkers to support each other.
d. get group members to compete against one another.

ANS: A PTS: 1 DIF: E REF: p. 376


NAT: AACSB: Communication, Individual Dynamics

23. To developing charisma,


a. be laid back and aloof.
b. have low self-efficacy.
c. keep emotions under tight control.
d. make everybody feel important.

ANS: D PTS: 1 DIF: M REF: p. 377


NAT: AACSB: Communication, Individual Dynamics

24. Shadowing as a mentoring technique involves


a. the mentor providing frequent feedback to the person mentored.
b. having a series of mentors.
c. observing the mentor by following him or her around.
d. showing considerable respect for the mentor in meetings.

ANS: C PTS: 1 DIF: E REF: p. 379


NAT: AACSB: Reflective Thinking, Motivation Concepts
fa
25. An example of a leadership skill would be
a. extraversion.
b. motivating others.
c. emotional stability.
d. conscientiousness.

ANS: B PTS: 1 DIF: M REF: p. 383


NAT: AACSB: Communication, Motivation Concepts
CHAPTER 11—MOTIVATION

MULTIPLE CHOICE

1. Employee commitment often comes about as a consequence of


a. being well motivated over time.
b. threats of punishment.
c. being motivated for a single task.
d. having the appropriate job skills.

ANS: A PTS: 1 DIF: D REF: p. 294


NAT: AACSB: Reflective Thinking, Motivation Concepts

2. According to recent evidence about employee engagement, most American workers


are
a. so engaged in their work they risk becoming alcoholics.
b. usually engaged in their work for the first four hours of the day.
c. so unengaged in their work they are a liability to their employer.
d. not fully engaged in their work.

ANS: D PTS: 1 DIF: M REF: p. 394


NAT: AACSB: Analytic, Group Dynamics

3. The final group of needs in Maslow's need hierarchy is


a. physiological needs.
b. esteem needs.
c. self-actualizing needs.
d. social needs.

ANS: C PTS: 1 DIF: E REF: p. 298


NAT: AACSB: Analytic, Motivation Concepts

4. A factor contributing today to the relevance of the need hierarchy is that


a. job security has reached new heights in recent years.
b. money is no longer a significant motivator.
c. so many workers have to worry about satisfying basic needs.
d. many companies sponsor programs of self-actualization.
ANS: C PTS: 1 DIF: M REF: p. 399
NAT: AACSB: Reflective Thinking, Individual Dynamics

5. Drives or needs are hardwired into our brains include the:


a. drive to acquire scare goods.
b. drive to bond.
c. drive to comprehend.
d. all of the choices

ANS: D PTS: 1 DIF: D REF: p. 402


NAT: AACSB: Analytic, Motivation Concepts

6. The achievement need refers to


a. finding joy in accomplishment for its own sake.
b. improving employee retention.
c. forming friendships.
d. increasing employee turnover.

ANS: A PTS: 1 DIF: E REF: p. 399


NAT: AACSB: Analytic, Individual Dynamics

7. Having pride in your work is considered to be a(n)


a. internal motivator.
b. external motivator.
c. weak motivator.
d. feeling that occurs mostly early in one's career.

ANS: A PTS: 1 DIF: M REF: p. 400


NAT: AACSB: Reflective Thinking, Motivation Concepts

8. A recommended way for a manager to motivate through pride is to


a. offer financial incentives for displays of pride.
b. celebrate attaining small goals as much as attaining the major goal.
c. celebrate attaining the major goal, and pay little attention to small
goals.
d. distribute T-shirts, hats, and cups that read, "I am proud."

ANS: B PTS: 1 DIF: M REF: p. 401


NAT: AACSB: Reflective Thinking, Motivation Concepts

9. The need for risk taking and thrill seeking


a. almost always has negative consequences for the employer.
b. is ill-suited for the high technology era.
c. can find constructive outlets on the job.
d. lies close to the bottom of the need hierarchy.

ANS: C PTS: 1 DIF: M REF: p. 401


NAT: AACSB: Reflective Thinking, Individual Dynamics

10. Job satisfiers or motivators, according to the two-factor theory, relate to the
a. financial bonuses associated with the job.
b. content of the job.
c. working conditions surrounding the job.
d. benefits associated with the job.

ANS: B PTS: 1 DIF: M REF: p. 402


NAT: AACSB: Analytic, Motivation Concepts

11. Which of the following job factors is most accurately classified as a dissatisfier?
a. opportunity for advancement
b. recognition for good work
c. working conditions
d. Responsibility

ANS: C PTS: 1 DIF: M REF: p. 403


NAT: AACSB: Reflective Thinking, Motivation Concepts

12. Which one of the following job factors is considered important for motivating the
young generation of workers?
a. close monitoring of work such as through time clocks
b. limited vacations
c. minimizing feedback
d. loads of responsibility

ANS: D PTS: 1 DIF: E REF: p. 403


NAT: AACSB: Analytic, Motivation Concepts
13. An accurate example of a cross-cultural difference in rewards is that
a. most Asian workers want public recognition.
b. workers from a poor country might prefer a practical reward.
c. Italian workers prefer gift certificates to stores like Wal-Mart.
d. Chinese women who sell beauty products dislike tangible rewards.

ANS: B PTS: 1 DIF: M REF: p. 413


NAT: AACSB: Diversity, Environmental Influence

14. A goal is most likely to improve performance when it is


a. relatively easy.
b. specific rather than general.
c. not used to evaluate performance.
d. not linked to rewards.

ANS: B PTS: 1 DIF: E REF: p. 404


NAT: AACSB: Analytic, Strategy

15. Which one of the following statements best fits the category of a superordinate goal
at the manufacturer of latex gloves?
a. "Let's find a way to cut back on skin rashes from wearing our gloves."
b. "The purpose of our latex gloves is to save lives."
c. "Let's exceed last year's sales by 20 percent this year."
d. "Let's diversify into foot protectors."

ANS: B PTS: 1 DIF: M REF: pp. 403-404


NAT: AACSB: Reflective Thinking, Strategy

16. Laboratory supervisor Sasha, is attempting to use the Pygmalion effect when she
says to her group,
a. "We will soon be implementing a bonus system."
b. "Who in this lab is not smart enough to do his or her job?"
c. "We may not have the best lab group in the company, but we do try."
d. "I know that we will exceed our quota of useful ideas this year."

ANS: D PTS: 1 DIF: M REF: p. 405


NAT: AACSB: Analytic, Motivation Concepts
17. A potential problem with relying on goals to motivate workers is that
a. they might use unethical means to attain goals.
b. they might receive praise from a supervisor.
c. they might receive a sense of satisfaction from a job well done.
d. it might lead to turnover.

ANS: A PTS: 1 DIF: M REF: p. 406


NAT: AACSB: Ethics, Ethical Responsibilities

18. A team leader wants Kristin, a customer-service representative, to keep up her fine
record of resolving customer complaints. The team leader should compliment
Kristin
a. at the end of every workday.
b. every so often when she resolves a tough problem.
c. even when she is unable to resolve a tough problem.
d. each Monday through Thursday, but not on Friday.

ANS: B PTS: 1 DIF: E REF: p. 407


NAT: AACSB: Reflective Thinking, Motivation Concepts

19. The employee motivation program at Dollar General illustrates that


a. people who work in discount stores demand luxury prizes.
b. only financial motivators are effective.
c. with even modest rewards, positive reinforcement can help a company
attain its goals.
d. the most effective rewards are low-priced merchandise.

ANS: C PTS: 1 DIF: D REF: pp. 409-410


NAT: AACSB: Reflective Thinking, Motivation Concepts

20. Luis, a commercial real estate agent, says "I'm almost sure that if I close this deal
the company will give me a bonus." Luis is demonstrating a high
a. EP expectancy.
b. PO instrumentality.
c. valence.
d. need for affiliation.
ANS: B PTS: 1 DIF: D REF: p. 415
NAT: AACSB: Analytic, Motivation Concepts

21. Praising workers for good performance is a type of


a. informal recognition..
b. formal recognition.
c. Valence
d. Management

ANS: A PTS: 1 DIF: M REF: p. 412


NAT: AACSB: Reflective Thinking, Motivation Concepts

22. A thrust in linking pay to performance is to attempt to link pay to


a. performance as good as the employee's best year.
b. team rather than individual performance.
c. how long the employee has been with the firm.
d. performance that supports the business strategy.

ANS: D PTS: 1 DIF: M REF: p. 420


NAT: AACSB: Reflective Thinking, Motivation Concepts

23. Gainsharing is
a. a program allowing employees to participate financially in the
productivity gains they achieved.
b. the same as stock options.
c. a type of empowerment.
d. a management style.

ANS: A PTS: 1 DIF: M REF: p. 420


NAT: AACSB: Analytic, Creation of Value

24. Stock options give the people granted the option the opportunity to
a. purchase stock at a later date at a price established now.
b. share directly in the profits of the firm.
c. purchase company stock anytime at a specific discount.
d. purchase stock of any company through online trading.

ANS: A PTS: 1 DIF: M REF: p. 422


NAT: AACSB: Analytic, Motivation Concepts

25. People who justify such high executive compensation say the large payments
are necessary
a. to attract and retain top talent.
b. to keep the executives motivated.
c. both a & b
d. to use profit sharing.

ANS: C PTS: 1 DIF: M REF: p. 423


NAT: AACSB: Reflective Thinking, Strategy

CHAPTER 15—ESSENTIALS OF CONTROL

MULTIPLE CHOICE

1. The purpose of a preventive (or pre-control) is to prevent


a. existing problems from escalating.
b. problems caused by a deviation from performance.
c. feedback controls from creating damage.
d. quality standards from being too demanding.

ANS: B PTS: 1 DIF: M REF: pp. 545-546


NAT: AACSB: Analytic, Operations Management

2. An example of a feedback control is a(n)


a. financial report.
b. quality specification.
c. in-process inspection of parts.
d. a field visit by top-level management.

ANS: A PTS: 1 DIF: M REF: p. 546


NAT: AACSB: Reflective Thinking, Creation of Value

3. A control system begins with


a. measuring performance.
b. agreeing on accuracy of measurement needed.
c. agreeing on who will use the measurements.
d. setting appropriate performance standards.
ANS: D PTS: 1 DIF: M REF: p. 548
NAT: AACSB: Analytic, Strategy

4. In its technical meaning, a budget is a plan for


a. allocating resources.
b. spending money.
c. saving money.
d. developing financial strategy.

ANS: A PTS: 1 DIF: M REF: p. 555


NAT: AACSB: Analytic, Creation of Value

5. Office manager Gus has spent all his annual money for paper towels, so he requests
that until the end of the budget cycle, employees bring their own paper towels to the
office. What type of budget does Gus most likely have?
a. pro-forma
b. Master
c. Flexible
d. Fixed

ANS: D PTS: 1 DIF: M REF: p. 555


NAT: AACSB: Reflective Thinking, Creation of Value

6. Dunkin' Donuts franchise manager Julie estimates how much her three stores will
take in next year, as well as how much she will spend. Julie is most likely preparing
which type of budget?
a. revenue and expense
b. capital expenditure
c. Cash
d. Production

ANS: A PTS: 1 DIF: D REF: p. 556


NAT: AACSB: Analytic, Strategy

7. Which of the following is a recommended technique for preparing a sensible


budget?
a. Budget liberally for income, and conservatively for expenses.
b. Budget conservatively for income and liberally for expenses.
c. Do not allow for wiggle room.
d. Go light in terms of basing budgets on historical information.

ANS: B PTS: 1 DIF: M REF: p. 555


NAT: AACSB: Reflective Thinking, Strategy

8. In calculating the profit margin, net income is


a. subtracted from cost of goods sold.
b. added to profits.
c. divided by sales.
d. subtracted from sales.

ANS: C PTS: 1 DIF: E REF: p. 558


NAT: AACSB: Analytic, Creation of Value

9. The financial ratio, revenue per employee is often used as a(n)


a. measure of productivity.
b. measure of return on capital.
c. index of growth potential.
d. index of bankruptcy potential.

ANS: A PTS: 1 DIF: M REF: p. 559


NAT: AACSB: Reflective Thinking, Creation of Value

10. The EVA (economic value added) is a guide to estimating how much a company
earns in comparison to
a. competitive firms.
b. a stock index such as the Dow Jones industrial average.
c. the cost of capital.
d. the average return on government bonds.

ANS: C PTS: 1 DIF: D REF: p. 560


NAT: AACSB: Analytic, Creation of Value

11. The financial measure of net debt evaluates how much a company owes after taking
into account
a. the effects of inflation on debt.
b. money on hand that could be used to eliminate debt.
c. the amount of debt that could be refinanced.
d. how much debt could be eliminated by declaring bankruptcy.

ANS: B PTS: 1 DIF: M REF: p. 561


NAT: AACSB: Analytic, Creation of Value

12. A major purpose of a pro-forma earnings statement is to exclude


a. salaries paid to non-productive employees.
b. kickbacks paid to the company by large customers
c. one-time charges not related to future earnings.
d. operating costs.

ANS: C PTS: 1 DIF: D REF: p. 561


NAT: AACSB: Analytic, Creation of Value

13. The basic purpose of measuring cash flow is to estimate how much
a. net cash a company has during a given period.
b. money customers owe a company.
c. time is left before a company goes bankrupt.
d. return stockholders can expect during a given period.

ANS: A PTS: 1 DIF: M REF: p. 561


NAT: AACSB: Analytic, Creation of Value

14. Cash from (or used in) operating activities is the


a. heart of cash flow.
b. cash paid to outsiders such as banks or stockholders.
c. cash received from selling stock or assets.
d. cash at the beginning and end of the period covered.

ANS: A PTS: 1 DIF: M REF: p. 562


NAT: AACSB: Analytic, Creation of Value

15. The executive team at Midas Muffler and Brake decides to publish a statement of
its available cash that subtracts from the cash, the planned investments in new shops
and new technology. The statement can best be labeled a measure of
a. pro-forma earnings
b. free cash flow.
c. EBITDA (earnings before interest, taxes, depreciation, and
amortization.
d. EVA (economic value added)

ANS: B PTS: 1 DIF: D REF: p. 563


NAT: AACSB: Analytic, Creation of Value

16. Which one of the following is not one of the perspectives of the balanced
scorecard?
a. Financial
b. customer service
c. learning and growth
d. cost controls

ANS: D PTS: 1 DIF: D REF: p. 570


NAT: AACSB: Analytic, Strategy

17. Under a balanced scorecard system, compensation is based on


a. achieving all the factors in the balanced scorecard.
b. financial goals and customer service goals.
c. financial goals and internal process goals.
d. learning and growth goals and internal process goals.

ANS: A PTS: 1 DIF: M REF: p. 569


NAT: AACSB: Reflective Thinking, HRM

18. An important use of activity-based costing is to estimate the


a. fixed and variable costs necessary to deliver a product or service.
b. amount of resources consumed in producing a product or service.
c. balanced scorecard for a firm.
d. cycle time for delivering a product or service.

ANS: B PTS: 1 DIF: E REF: p. 570


NAT: AACSB: Analytic, Strategy

19. Positive approaches to cost cutting include


a. videoconferencing to cut travel costs
b. investing in new printers to cut inkjet cartridges costs.
c. keeping sales expenses at or below 10 percent of sales.
d. all of the choices

ANS: D PTS: 1 DIF: M REF: p. 564


NAT: AACSB: Reflective Thinking, Operations Management

20. An example of intellectual capital is the


a. money invested in a mainframe computer.
b. brainpower of a company's product development team.
c. money invested in advertising in trade journals.
d. accounts receivables for services.

ANS: B PTS: 1 DIF: M REF: p. 572


NAT: AACSB: Analytic, HRM

21. A caution about cost cutting is that it can lead to


a. low morale and lower quality goods and services.
b. the image of a cheap company
c. both a & b
d. increase the cost of supplies

ANS: C PTS: 1 DIF: M REF: p. 567


NAT: AACSB: Reflective Thinking, Strategy

22. The control information provided by an information system is


a. usually outdated when it arrives.
b. based on activities that take place outside the company.
c. virtually unlimited.
d. quite restricted in scope.

ANS: C PTS: 1 DIF: M REF: p. 575


NAT: AACSB: Technology, Information Technologies

23. Computer-aided monitoring is used for


a. data-loss prevention.
b. recording an employee’s efficiency.
c. monitoring quality
d. all of the choices

ANS: D PTS: 1 DIF: D REF: pp. 575-576


NAT: AACSB: Technology, Information Technologies

24. Computer-aided monitoring of work raises concerns about


a. privacy issues.
b. supply issues
c. return-on-investment.
d. profit loss.

ANS: A PTS: 1 DIF: M REF: p. 576


NAT: AACSB: Technology, Information Technologies

25. A cost-effective control system


a. provides a satisfactory return on investment.
b. provides financial penalties for departments that exceed budget.
c. eliminates the need for hiring outside consultants.
d. approaches being totally automated.

ANS: A PTS: 1 DIF: M REF: p. 579


NAT: AACSB: Analytic, Creation of Value

CHAPTER 16—MANAGING INEFFECTIVE PERFORMERS

MULTIPLE CHOICE

1. Job performance is considered ineffective when it


a. falls below an accepted standard.
b. leads to employee dismissal.
c. emphasizes quantity more than quality.
d. must be controlled by management.

ANS: A PTS: 1 DIF: M REF: p. 588


NAT: AACSB: Reflective Thinking, HRM
2. Factors contributing to ineffective performance include
a. insufficient mental ability and education.
b. low motivation and loafing.
c. emotional problems or personality disorder.
d. all of the choices

ANS: D PTS: 1 DIF: M REF: pp. 589-590


NAT: AACSB: Reflective Thinking, Individual Dynamics

3. Priscilla displays low organizational citizenship behavior when she


a. discovers a leaking faucet in the break lounge but does not report it.
b. votes only in national elections.
c. votes only in local elections.
d. holds open the door for a senior citizen.

ANS: A PTS: 1 DIF: M REF: p. 592


NAT: AACSB: Reflective Thinking, Individual Dynamics

4. A study found that workers low in organizational citizenship behavior


a. refused to contribute to charities through payroll deduction.
b. spent too much time in community activities during working hours.
c. tended to be the most productive workers.
d. tended to engage in counterproductive workplace behavior.

ANS: D PTS: 1 DIF: M REF: p. 592


NAT: AACSB: Reflective Thinking, Environmental Influence

5. A major contributing factor to performance problems among night-shift workers is


that they suffer from
a. acute hunger pangs.
b. mental lapses.
c. nightmares on the job.
d. job burnout.

ANS: B PTS: 1 DIF: M REF: p. 592


NAT: AACSB: Reflective Thinking, HRM

6. A consultant observed that an explosive sexual harassment case usually


a. has a domino effect leading to more cases of sexual harassment.
b. encourages other types of deviant behavior on the job.
c. increases productivity temporarily because of the excitement.
d. decreases productivity temporarily because of gossip and distraction.

ANS: D PTS: 1 DIF: M REF: p. 595


NAT: AACSB: Reflective Thinking, Legal Responsibilities

7. The core of the control model for managing ineffective performers is


a. disciplining workers for substandard performance.
b. problem identification and problem solving.
c. motivating ineffective performs to do better.
d. making clear the sanctions for substandard performance.

ANS: B PTS: 1 DIF: M REF: p. 597


NAT: AACSB: Reflective Thinking, Strategy

8. A recommended confrontation technique is for the manager to


a. communicate care and concern.
b. threaten the worker's job security.
c. make two nice comments for every negative one.
d. appear angry and worried.

ANS: A PTS: 1 DIF: M REF: p. 600


NAT: AACSB: Reflective Thinking, HRM

9. When referring employees to the EAP, the supervisor should focus on


a. workplace problems created by the employee.
b. the employee's personal deficiencies.
c. the employee's most recent performance appraisal.
d. the wide range of services offered by the EAP.

ANS: A PTS: 1 DIF: M REF: p. 601


NAT: AACSB: Reflective Thinking, HRM

10. Managerial actions and techniques for ineffective performers include


a. close supervision
b. Coaching
c. Transfer
d. all of the choices

ANS: D PTS: 1 DIF: D REF: p. 602


NAT: AACSB: Analytic, HRM

11. Two business psychologists cited in the management text claim that good coaching
a. is simply good management.
b. cannot be done by managers.
c. should not be part of a manger's responsibility.
d. should be the responsibility of top-level management only.

ANS: A PTS: 1 DIF: E REF: p. 605


NAT: AACSB: Reflective Thinking, HRM

12. The recommended time to give negative feedback about poor performance is
a. close in time to the incident of poor performance.
b. immediately after regular working hours.
c. just before the start of the workday.
d. as part of the annual performance evaluation.

ANS: A PTS: 1 DIF: E REF: p. 605


NAT: AACSB: Communication, HRM

13. Showing empathy for an employee stems naturally from


a. giving advice.
b. imposing progressive discipline.
c. active listening
d. asking closed-end questions.

ANS: C PTS: 1 DIF: E REF: p. 605


NAT: AACSB: Communication, HRM

14. A good question in coaching employees helps them


a. understand their need for development.
b. recognize that they are wrong.
c. understand that the manager is just doing his or her job.
d. recognize the precise nature of performance standards.
ANS: A PTS: 1 DIF: E REF: p. 605
NAT: AACSB: Communication, HRM

15. A recommended way of giving advice is to


a. promise a reward for following the advice.
b. promise a punishment for not following the advice.
c. ask an insightful question.
d. send an e-mail message to the person.

ANS: C PTS: 1 DIF: M REF: p. 605


NAT: AACSB: Communication, Strategy

16. Lester, a credit analyst, is caught selling illegal drugs to co-workers. He will most
likely receive
a. progressive discipline.
b. summary discipline.
c. corrective discipline.
d. a referral to the EAP.

ANS: B PTS: 1 DIF: M REF: p. 607


NAT: AACSB: Analytic, Legal Responsibilities

17. Corrective discipline


a. allows employees to correct their behavior before punishment is
applied.
b. is the immediate discharge of an employee.
c. is part of a performance review.
d. results in firing.

ANS: A PTS: 1 DIF: M REF: pp. 6-7


NAT: AACSB: Analytic, HRM

18. The final step in progressive discipline is


a. discharge.
b. a visit to the EAP.
c. suspension.
d. appeal.
ANS: A PTS: 1 DIF: M REF: p. 610
NAT: AACSB: Analytic, HRM

19. A core principle of discipline and punishment is for the manager to


a. make clear his or her analysis of the worker's personal weaknesses.
b. focus on the person, not the unsatisfactory performance.
c. focus on unsatisfactory performance, not the person.
d. ignore the first two offenses.

ANS: C PTS: 1 DIF: M REF: p. 611


NAT: AACSB: Analytic, HRM

20. Employees who believe in a just world are likely to


a. think that punishment is unjust.
b. take an active role in punishing coworkers.
c. demand due process when they have been punished.
d. accept punishment when they have performed poorly.

ANS: D PTS: 1 DIF: M REF: p. 612


NAT: AACSB: Ethics, Ethical Responsibilities

21. Just punishment informs employees that


a. certain types of misconduct will not be tolerated.
b. they will be discharged.
c. they will be transferred.
d. they will be retrained.

ANS: A PTS: 1 DIF: M REF: p. 612


NAT: AACSB: Ethics, Ethical Responsibilities

22. The passive-aggressive worker will typically express anger by


a. doing nothing when action should be taken.
b. complaining frequently to the supervisor and co-workers.
c. verbal abuse.
d. physical abuse.
ANS: A PTS: 1 DIF: D REF: p. 613
NAT: AACSB: Reflective Thinking, HRM

23. Which of the following is the most recommended approach to dealing with a
difficult employee?
a. Avoid humor about the problem being caused.
b. Judge the person quickly
c. Explain the importance of teamwork.
d. Stand fast and do not make unwarranted concessions.

ANS: D PTS: 1 DIF: E REF: p. 615


NAT: AACSB: Communication, HRM

24. To deal with a difficult employee,


a. listen and then confront or respond.
b. give recognition and attention.
c. both a & b
d. give in to all demands.

ANS: C PTS: 1 DIF: M REF: p. 615


NAT: AACSB: Communication, Leadership Principles

25. To do a more effective job of firing an employee, it is recommended that the


manager
a. base the firing on second-hand information.
b. be indirect in language to keep the employee off-guard.
c. not conduct the termination session while angry.
d. use e-mail instead of personal contact to avoid dealing with anger.

ANS: C PTS: 1 DIF: E REF: p. 618


NAT: AACSB: Communication, HRM

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