1. The $10 test showed that clever management can benefit both workers and managers. Answer: True False Diff: 1 Page Ref: 55 Objective: 2.

Transcription

1 Chapter 2: The Management Environment 1. The $10 test showed that clever management can benefit both workers and managers. True False Diff: 1 Page Ref: 55 Objective: The $10 test was enthusiastically accepted by workers immediately. True False Diff: 2 Page Ref: 55 Objective: One area in which most global companies are cutting back is customer service. True False Diff: 2 Page Ref: 55 Objective: A major cause of the economic downturn that began in 2008 was too much debt taken on by both consumers and businesses. True False Diff: 2 Page Ref: 56 Objective: The U.S. economy has been the primary model for economic systems around the world. True False Diff: 2 Page Ref: 57 Objective: Multinational corporations maintain significant operations in two or more countries simultaneously. True False Diff: 2 Page Ref: Transnational corporations run their businesses from their home country. True False Diff: 2 Page Ref: When organizations go global, they often start by simply exporting products to one or more foreign countries. True False Diff: 2 Page Ref: After the outsourcing stage, companies that are going global often turn to exporting and importing goods

2 across international borders. True False Diff: 2 Page Ref: Licensing and franchising typically follow the export-import phase of globalization. True False Diff: 2 Page Ref: In a strategic alliance, companies join together to form a separate entity to produce a product. True False Diff: 2 Page Ref: Managers with a parochial view of the world tend to see things from the point of view of a foreign culture. True False Diff: 2 Page Ref: French organizations have a very different view of status than American organizations. True False Diff: 3 Page Ref: According to Hofstede, countries such as Singapore and Japan are more collectivist than the United States. True False Diff: 2 Page Ref: The United States is an example of a country with small power distance. True False Diff: 2 Page Ref: A society with high uncertainty avoidance relies on rules and trusts its social institutions to deal with an uncertain future. True False Diff: 3 Page Ref: Cultures with a high assertiveness rating tend to have people who are timid and shy. True False Diff: 2 Page Ref: 63

3 18. Future orientation is a measure of how successful a society is at delaying gratification. True False Diff: 2 Page Ref: Hofstede based his ratings on the traits of people of different nationalities with whom he was personally acquainted. True False Diff: 1 Page Ref: Hofstede's findings were not confirmed by later studies. True False Diff: 2 Page Ref: There is little evidence that managers of major organizations ever fail to act responsibly and ethically. True False Diff: 2 Page Ref: The classical view of organizational social responsibility is that management's only social responsibility is to maximize profits. True False Diff: 2 Page Ref: In the socioeconomic view of organizational social responsibility, management's responsibility includes protecting and improving society. True False 24. One argument against businesses championing social responsibility issues is that being socially responsible can harm an organization's public image. True False Diff: 1 Page Ref: Long-term stability is an argument for social responsibility. True False Diff: 2 Page Ref: As long as it has broken no laws and done nothing unethical, a business has fulfilled its obligation to society.

4 True False Diff: 3 Page Ref: A good example of social responsiveness is a company whose managers conduct business in an ethical way and strictly follows all local laws. True False Diff: 3 Page Ref: Any action that is illegal is unethical and any action that is legal is ethical. True False 29. Having a written code of ethics ensures that an organization's members will behave ethically. True False Diff: 2 Page Ref: Managers have found that a "melting pot" approach of expecting diverse employees to assimilate is sufficient for harmony in the workplace. True False Diff: 2 Page Ref: The U.S. workforce is now over 50 percent female. True False Diff: 1 Page Ref: Managers should expect contingent workers and core employees to be equally committed to the organization's goals. True False Diff: 2 Page Ref: Traditionally, managers ignored customer relations and focused on other things. True False Diff: 2 Page Ref: To increase customer responsiveness, organizations should hire employees who are outgoing and friendly. True False Diff: 1 Page Ref: 73

5 35. To create a successful customer service culture, an organization should draft a written set of customer service rules that should be stringently followed. True False Diff: 2 Page Ref: Good listening skills are an important characteristic of a successful customer service employee. True False Diff: 2 Page Ref: The $10 hotel test was deemed a success because. A) workers got paid more without actually increasing their work load B) hotel occupancy rates increased during the time the policy was in place. C) managers got better service and workers got more pay D) managers got better service without increasing their costs Diff: 2 Page Ref: 55 Objective: Which of the following is NOT a feature of the U.S. model of capitalism in the twentieth and twenty-first centuries? A) large-scale operations B) corporate model of ownership and organization C) open markets D) full lifetime job security Diff: 2 Page Ref: 57 Objective: The financial crisis that began in 2008 has resulted in the current climate in which there has been business and business leaders. A) new curiosity in B) new-found confidence in C) an erosion of trust in D) indifference toward Diff: 2 Page Ref: 56 Objective: Which of the following is most likely to be the biggest change that the "new economy" will usher in? A) organizations taking on more risk B) fewer regulations C) a larger government role D) a smaller government role

6 Diff: 2 Page Ref: 57 Objective: Globalization can be best characterized as a business climate in which there are. A) no rules or standards B) no international boundaries C) rigid rules and standards D) rigid international boundaries Diff: 2 Page Ref: Which of the following is NOT a key characteristic of a global organization? A) employs high-level technical employees and managerial talent from other countries B) uses resources from other countries C) exchanges goods and services with consumers in other countries D) has a home country in which all decisions are made and all profits flow Diff: 3 Page Ref: A multinational corporation (MNC). A) is defined as any company that has no "home base" B) includes any company that exports goods overseas C) is defined as a company that has its home base in the United States and various operations overseas D) is any organization that maintains operations in more than one country Diff: 2 Page Ref: A global corporation. A) centralizes management in a single home country B) has two main management locations located on different sides of the globe C) decentralizes management so that each local country's operation is managed locally D) decentralizes management so there is no single home location Diff: 2 Page Ref: is a good example of a multidomestic corporation. A) Procter & Gamble B) The New York Yankees C) Nestlé D) Coca-Cola Diff: 2 Page Ref: 59

7 46. Which of the following best characterizes a transnational corporation? A) an organization in which multiple operations function with a large degree of autonomy B) a loose alliance of totally separate, wholly independent companies C) an organization in which multiple operations are all integrated toward the same goals D) a single central home-country management Diff: 2 Page Ref: Which of the following would NOT be called an "American company"? A) a global corporation that originated in Dallas, Texas and has operations in 12 countries B) a multidomestic with a home base in Memphis, Tennessee C) a transnational that originated in New York City with operations in 6 countries D) a global corporation that began in Japan but has since relocated and now has its sole headquarters in Chicago Diff: 3 Page Ref: Which choice constitutes the typical first step for an organization that is "going global"? A) strategic alliance B) outsourcing C) licensing D) franchising Diff: 2 Page Ref: Franchising is used widely by. A) restaurant chains B) accounting firms C) universities D) electric power companies Diff: 1 Page Ref: A fully global organization might set up a with a foreign company to create a new, independent company that produces a specific product. A) foreign subsidiary B) licensing agreement C) joint venture D) strategic alliance Diff: 2 Page Ref: Which of the following is usually found in the final stage of an organization's global evolution?

8 A) outsourcing jobs to foreign countries B) licensing products in foreign countries C) exporting products to other countries D) establishing strategic alliances with partners Diff: 2 Page Ref: Of the approaches to pursuing international markets, developing a involves the greatest commitment and risk. A) franchise B) strategic alliance C) foreign subsidiary D) joint venture Diff: 2 Page Ref: Joint ventures are a type of. A) license B) foreign subsidiary C) franchise D) strategic alliance Diff: 2 Page Ref: A Coca-Cola bottling plant in Bolivia is wholly owned by a local businessperson. What kind of venture is this plant likely to be? A) a franchise B) a foreign subsidiary C) a licensed plant D) a joint venture Diff: 2 Page Ref: Which of the following is the best synonym for the word parochial? A) religious B) catholic C) narrow D) broad Diff: 1 Page Ref: Parochialism is. A) recognition of diverse religious beliefs

9 B) a tendency to view the world through a single perspective C) a desire to leave one's own culture for a foreign culture D) acceptance of diverse points of view Diff: 2 Page Ref: Status in France within a corporation is largely. A) measured in the same way it is in the United States. B) based on how much money a person makes C) based on an individual's personal accomplishments D) based on such things as seniority and educational level Diff: 2 Page Ref: In his study of differences in cultural environments, Geert Hofstede found that. A) people are largely the same from culture to culture with respect to values B) the views of IBM employees differ widely from the general population with respect to values C) the views of managers differ greatly from those of employees with respect to values D) people vary from culture to culture in five value categories Diff: 2 Page Ref: is a cultural dimension measured by Hofstede in which people identify strongly with a group within a society. A) Uncertainty avoidance B) Power distance C) Collectivism D) Individualism Diff: 1 Page Ref: Which of the following would be likely to be true in a country with a high power distance? A) Rather than employ a driver, top managers would drive their own cars to work. B) The leader's likeness would appear only in the newspaper from time to time. C) Hundreds of statues, billboards, and posters of the leader would appear all over the capital. D) Top managers and employees would dress in similar ways. Diff: 3 Page Ref: A country with a high uncertainty avoidance. A) has no rules B) is highly structured and does not depend on rules and social institutions to cope with uncertainty C) has no structure or social institutions

10 D) is highly structured and depends on rules and social institutions to cope with uncertainty Diff: 3 Page Ref: In a country with a low uncertainty avoidance, people cope with uncertainty. A) largely without rules or strong social institutions B) by looking to the religious teachings C) by making new rules D) by following rules and depending on social institutions Diff: 3 Page Ref: Societies with a high assertiveness rating would tend to be. A) passive B) uncertain C) competitive D) excessively polite Diff: 2 Page Ref: In a society with high, you would expect members of a corporation to have a strong identification with the corporation. A) in-group collectivism B) gender differentiation C) future orientation D) humane orientation Diff: 2 Page Ref: is an attribute that describes how materialistic a society is. A) Quality of life B) Quantity of life C) Power distance D) Individualism Diff: 2 Page Ref: Which feature of Hofstede's study lends it a great deal of validity? A) It measured attitudes of IBM employees. B) It surveyed 116,000 people. C) The survey was carried out in the 1970s. D) It measured attitudes of many successful people.

11 Diff: 2 Page Ref: Which of the following dimensions from the GLOBE framework has no equivalent counterpart in Hofstede's framework? A) individualism/collectivism B) future orientation C) gender differentiation D) humane orientation Diff: 2 Page Ref: Which implication best summarizes the meaning of the quote below? "...ethics...is essential to our survival as a wealth-creating nation." A) Being ethical is bad for business. B) Being ethical in the long run is more important than making a profit. C) Being ethical has no impact on business. D) Being ethical in the long run is good for business. Diff: 2 Page Ref: The cases of Enron and Bernard Madoff go beyond a question of ethics because in both cases. A) no harm was intended and they had good reasons for what they did B) many people were hurt C) billions of dollars were involved D) laws were clearly broken Diff: 2 Page Ref: Which of the following would NOT be an example of green management? A) a company using reusable rather than disposable containers B) a company rewarding workers to carpool C) a company shipping in expensive all-natural fruits for employees all year round D) a company using wind energy for electricity Diff: 2 Page Ref: The classical view of social responsibility is that a for-profit organization's responsibility is. A) to help as many people as possible B) to maximize profits only C) to maximize opportunity for all D) to maximize both profits and the general welfare

12 Diff: 2 Page Ref: A company that meets its social obligation. A) does not need to obey local laws B) fulfills its legal and economic responsibilities only C) goes beyond its legal and economic responsibilities and responds to some pressing social need D) fulfills its economic responsibilities only 73. Which of the following is the best example of a company being socially responsive? A) displaying "think green" posters B) building a community day-care center C) meeting hazardous materials standards D) giving Christmas bonuses to worthy employees Diff: 3 Page Ref: The classical view of social responsibility holds that spending time, money, labor, or energy to improve society's welfare would. A) not have any positive or negative impact on stockholders B) show stockholders that the company knows best C) deprive stockholders of resources that could be used to generate profits D) help maximize profits for stockholders Diff: 2 Page Ref: The socioeconomic view of social responsibility states that a business. A) is an economic agent only B) has no responsibility C) is a harmful agent D) is a moral agent 76. The socioeconomic view is that management's social responsibility goes beyond making profits to include. A) challenging norms within society and inciting people to rise up against injustice B) protecting and improving society's welfare C) prosecuting those who break the law D) sacrificing its own welfare to advance the cause of justice

13 77. Proponents of the socioeconomic view of social responsibility believe that being socially responsive is. A) good for business B) neither good nor bad for business C) bad for any business in a competitive market D) bad for business 78. dictates that being socially responsible is the "right thing to do." A) A public expectation B) A public image C) A dilution of purpose D) An ethical obligation Diff: 2 Page Ref: Supporters of social responsibility claim that being socially responsible. A) increases short-term profits B) decreases short-term profits C) decreases long-term profits D) increases long-term profits Diff: 2 Page Ref: Supporters of socially responsible businesses claim that by becoming socially responsible, businesses can expect. A) less government regulation B) more strict enforcement of laws C) more government regulation D) more government interference Diff: 2 Page Ref: Since businesses have more power and resources than ordinary individuals, supporters of social responsibility claim that businesses have. A) less reason to act in a socially responsible way B) no reason to act in a socially responsible way C) a good reason to ignore the needs of ordinary individuals D) more reason to act in a socially responsible way Diff: 2 Page Ref: 65

14 82. The argument against social responsibility that states that pursuing goals other than making profits diverts a company away from its primary goal of making profits is known as. A) dilution of purpose B) too much power C) possession of resources D) lack of skills Diff: 2 Page Ref: One prominent argument against being socially responsible makes the claim that business managers are to address social concerns. A) too wealthy B) too impractical C) too out of touch D) not competent Diff: 2 Page Ref: Those arguing against being socially responsible might make the claim that costs for social goals are ultimately. A) paid for by the people being helped B) paid for by consumers in the form of higher prices C) are never paid by anyone D) paid for by companies in the form of tax breaks Diff: 3 Page Ref: Which of the following is NOT an argument against the idea that companies should be socially responsible? A) costs B) violation of profit maximization C) too much power D) public expectations Diff: 1 Page Ref: "Lack of accountability" argues against a firm being socially responsible by saying that once actions are taken there is no one. A) to take responsibility if things go wrong B) to follow up afterward C) to speak to the media to put a spin on actions taken D) to take credit if things work out well Diff: 2 Page Ref: 65

15 87. When a company does the minimum that the law requires, it is meeting its. A) social obligation B) economic responsibility C) social responsiveness goal D) ethical responsibility 88. A factory that has adhered to all pollution control standards has. A) been economically responsible B) been socially responsive C) met its social obligation D) been ethical 89. Social responsiveness refers to the capacity of a firm to. A) differentiate between right and wrong B) follow all government regulations C) be a role model for other organizations D) address some pressing public need 90. When a firm advertises that it only uses recycled paper products, it is. A) being socially responsive B) meeting its social obligation C) paying attention to the bottom line D) being cynical 91. Which of the following is a basic definition of ethics? A) rules that define good and evil B) laws that define legal and illegal C) principles that define standards of decency D) principles that define right and wrong

16 92. A is a formal document that states an organization's primary values and the ethical rules it expects its employees to follow. A) vision statement B) code of ethics C) mission statement D) statement of purpose Diff: 1 Page Ref: About of organizations of 10,000 or more employees have a written code of ethics. A) one-third B) half C) 97 percent D) 70 percent Diff: 1 Page Ref: In most cases, organizations that have managers who behave ethically tend to have. A) less ethical employees B) more ethical employees C) employees who are no more or less ethical than average D) more productive employees Diff: 2 Page Ref: A(n) view of ethics states that more productive workers should get more pay, and less productive workers less pay, regardless of other circumstances. A) rights B) theory of justice C) utilitarian D) individual liberties Diff: 2 Page Ref: A manager who subscribes to the theory of justice view of ethics might pay low-level employees. A) the minimum wage B) less than the minimum wage C) more than the minimum wage D) according to how productive they were Diff: 2 Page Ref: Which of the following is a category of workforce diversity?

17 A) education level B) style of dress C) age D) computer skills Diff: 2 Page Ref: Managers have found that the best approach to diversity is. A) to allow workers to maintain their differences if that is what they prefer. B) to compel workers to assimilate using rewards and punishments C) the "melting pot" approach that allows workers to assimilate naturally D) to enforce differences even among workers who wish to assimilate Diff: 2 Page Ref: Changes in the workforce since the 1960s are largely due to. A) federal anti-discrimination legislation B) migration within the United States C) a booming economy D) women postponing having babies Diff: 2 Page Ref: Workforce diversity will be significantly affected in the next decade by. A) increases in U.S. birthrates B) increases in the U.S. divorce rate C) increases in the teen worker population D) the aging of the U.S. population Diff: 1 Page Ref: In global companies, a major cause of the line between work and nonwork getting blurred is. A) needing to communicate with overseas operations in different time zones B) needing to communicate on a face-to-face basis with employees C) employees needing to work on holidays D) employees needing to commute long distances Diff: 1 Page Ref: make(s) some managers feel that there is no escape from issues dealing with their work. A) Ethical obligations B) Rigid 8-hour work days C) Being a single wage earner

18 D) , text messages, and cell phones Diff: 2 Page Ref: Which of the following is NOT an attempt by management to provide flexibility in the workplace? A) on-site day care B) bonus pay C) telecommuting D) job sharing Diff: 2 Page Ref: Part-time, temporary, and contract workers who are available for hire on an as-needed basis are known as. A) consultants B) summer employees C) a contingent workforce D) core employees Diff: 1 Page Ref: Managers hire contingent workers because they are than permanent workers. A) more flexible B) more productive C) less costly D) more loyal Diff: 2 Page Ref: Managers today realize that long-term success is largely achieved by. A) hiring highly educated managers B) focusing on costs C) focusing on goals D) satisfying the customer Diff: 2 Page Ref: Which of the following is NOT true of today's customers? A) They are more skeptical. B) They have fewer choices. C) They are less extravagant. D) They are more demanding.

19 Diff: 2 Page Ref: Why is a bank teller position classified as a service industry job? A) The teller must interact with customers. B) It is not a high-paying job. C) It deals with the financial industry. D) The teller must be well-trained and independent. Diff: 2 Page Ref: Improved employee attitudes. A) do not improve customer attitudes B) lead indirectly to increased revenue C) lead directly to increased stock prices D) improve customer attitudes but do not lead to increased revenue Diff: 2 Page Ref: A company with a customer-responsive culture looks primarily to hire employees who are. A) studious and detail-oriented B) friendly, outgoing, and good at listening C) passive and introverted D) assertive and demanding Diff: 2 Page Ref: Empowerment might give a customer service employee the ability to. A) break rules that clash with the company code of ethics B) ignore customers who clearly do not intend to purchase merchandise C) show up to work late several times a week D) modify a service plan for a customer in an unusual way Diff: 2 Page Ref: The management theory of continuous improvement focuses on quality where managers in the past focused on. A) keeping prices up B) innovation C) consistency D) productivity Diff: 2 Page Ref: 74

20 113. Continuous improvement puts a focus on the customer, who is defined as. A) the purchaser of the company's products B) only those individuals who spend a significant amount of money on the company's products C) individuals who buy the company's products or competitor's products D) anyone and everyone who does business with the company Diff: 3 Page Ref: All of the following are characteristics of continuous improvement EXCEPT. A) empowerment of employees B) improvement in the quality of everything the organization does C) accurate statistical measurement of quality D) drastic change to improve quality Diff: 2 Page Ref: In contrast to continuous improvement, work process engineering refers to. A) creating an organization that features kaizen B) implementing sudden or radical change within an organization C) implementing gradual or incremental change within an organization D) creating a customer-responsive culture Diff: 2 Page Ref: 76