CHAPTER ONE REVIEW QUESTIONS 1. What are some of the personal sk lls an!

a" l t es that #e$ Wh tman an! %en Chena&lt "r n$ to the r 'o"s as mana$ers( Chenault and Whitman have a broad perspective, the ability to see the need for change and implement it, good people skills, decisiveness, and the ability to persuade others. Both enjoy a challenge, take risks to follow their instincts, and have experience in management. Ans)er* pp +,.. What are the three /r t /al /hallen$es mana$ers fa/e to!a0( The three critical challenges managers face today are change, technology, and globalism. ll managers are faced with the need or opportunity to change, as it is the most persistent, powerful, and pervasive challenge they face. Technology developments are occurring constantly and are often forcing changes throughout the business world. !lobalism, the increasing international and cross"cultural nature of everything from politics to business, affects the way managers set goals, make decisions, and coordinate and lead the work of other people. Ans)er* p 1 2. Ho) )o&l! 0o& !ef ne mana$ement( #anagement is the process of assembling and using sets of resources in a goal"directed manner to accomplish tasks in an organi$ational setting. Ans)er* p 3 +. Wh0 s t mportant to &n!erstan! mana$ement ) th n the /onte4t of or$an 5at ons( #anagerial activities, such as decision making or communication, can happen in non" organi$ational settings such as a family. %ou can even engage in managerial activities such as planning and goal setting independently, without others being involved. &owever, these activities in isolation do not constitute management. #anagement re'uires integration of all these activities and the involvement of other people. This integration only occurs in an organi$ational context. (t is similar to a dialogue taking place only when another person participates in the conversation)otherwise, it*s a monologue. Ans)er* p 16 -. What are some of the fa/tors that make n! 7 !&al or$an 5at ons &n 8&e( +rgani$ations often bring together a variety of people from different backgrounds)from different ethnicities and cultures , sian, frican merican, rabic, nglo, (rish, -ietnamese, and so on., different educational levels ,high school dropouts, college graduates, and #B s., different technical backgrounds ,engineering, digital arts, and accounting., and different socioeconomic levels ,from very poor to very privileged.) who must then work together to achieve common objectives. Thus, developing a degree of shared cooperation becomes essential. This can only be accomplished by gaining

acceptance of existing ways of working together, using existing structures and processes, or by developing new structures and processes. These behaviors, structures, and processes over time constitute the personality, or culture, of the organi$ation. Whatever one may think or assume about the personality or culture of, say, a typical unit of !eneral #otors, it is likely to be different from that of /atagonia, the apparel manufacturer head'uartered in -entura, California, where an office message board posts the local surfing conditions. The basic principles of effective management are relevant in all organi$ations, but the specific characteristics of an organi$ation affect how those principles are applied. Ans)er* p 11,1. 9. E4pla n the para!o4es* or tra!e,offs* that mana$ers ha7e to master to "e effe/t 7e. +ne of the important factors that separate great managers from mediocre managers is the recognition, acceptance, and mastery of managing paradoxes)the ability to cope with forces that pull managers in opposite directions. !reat managers do not avoid these tensions but embrace them, harness them, and utili$e them. #anagers at times have to make decisions about trade"offs. 0ometimes they do, in fact, have to go with one set of actions to achieve the desired results)for example, expand the investment in the 123 ,research and development. area of the company)and in the process, forgo another investment and its potential results. That might mean postponing T- advertising during the 0uper Bowl for two years. &owever, great managers do not automatically view competing forces in terms of direct trade"offs4 they often recogni$e that the challenge is to respond to both forces simultaneously in a creative fashion that enables the firm to accomplish both sets of objectives or some portion of them. Ans)er* p 11 1. E4pla n )h0 an :entreprene&r al m n!set; s mportant to all mana$ers. To survive in the hypercompetitive landscape that exists in the twenty"first century managers are re'uired to regularly search for and be open to new opportunities in their current marketplace or to ideas that could create new markets. 5ntrepreneurship involves identifying new opportunities and exploiting them. Thus, managers must be entrepreneurial. 5ntrepreneurship is not exclusive to management, especially in the current environment. 5ntrepreneurial activity is not limited to new, small firms. #anagers in large firms need to be entrepreneurial and create new businesses as well. 3eveloping new businesses re'uires that the lead person and perhaps others take entrepreneurial actions. With an entrepreneurial mind"set, managers can sense opportunities and take actions to exploit them. 6ncertainty in the environment tends to level the 7playing field8 for both large and smaller organi$ations and for resource"rich and resource"poor ones. +pportunities can be identified by anyone and exploited to achieve a competitive advantage. Ans)er* p .. 3. What are the f&n/t ons of mana$ement that all mana$ers perform(

The functions that all managers perform are9 planning, which is estimating future conditions and circumstances and making decisions about appropriate courses of action4 organi$ing, which means systematically putting resources together4 directing, which is the process of attempting to influence other people to attain organi$ational objectives4 and controlling, which regulates the work of those for whom a manager is responsible. Ans)er* pp .-,.9 <. What are the mana$ement roles # nt5"er$ !ent f e!( #int$berg organi$ed his typology of managerial roles into three major categories) interpersonal, informational, and decisional)each of which contains specific roles. ltogether, there are :; such roles in this system. Interpersonal roles are composed of three types of behavior and, according to #int$berg, are derived directly from the manager*s formal authority granted by the organi$ation. They are the <igurehead 1ole, =eader 1ole, and the =iaison 1ole. Informational Roles build on the interpersonal relationships that a manager establishes, and it underlines the importance of the network of contacts built up and maintained by the manager. The three specific informational roles identified by #int$berg are the #onitor 1ole, the 3isseminator 1ole, and the 0pokesperson 1ole. Decisional Roles are the final category of roles in this classification system relates to the decision"making re'uirements of a manager*s job. <our such decisional roles are designated by #int$berg9 the 5ntrepreneurial 1ole, the 3isturbance &andler 1ole, the 1esource llocator 1ole and the >egotiator 1ole. Ans)er* pp .9,.< 16. What are the sk lls nee!e! "0 mana$ers at all le7els of the or$an 5at on( Technical skills involve speciali$ed knowledge about procedures, processes, e'uipment, and the like and include the related abilities of knowing how and when to use that knowledge. Interpersonal skills like sensitivity, persuasiveness, and empathy have been shown to be important at all levels of management, although particularly so at lower and middle levels. Conceptual Skills, often called cognitive ability or cognitive complexity, are skills such as logical reasoning, judgment, and analytical abilities that are a relatively strong predictor of managerial effectiveness. These skills are often the major factor that determines who reaches the highest levels of the organi$ation. Ans)er* pp 2.,2+ CHAPTER . REVIEW QUESTIONS 1.What )ere the en7 ronmental sh fts that prompte! /han$e at =SP( The environmental shifts that forced change were from analog to digital technology in diagnostic instruments, from #.3.s and /h.3.s to technicians as end users, and the shift from individual tests to integrated analysis. Ans)er* pp 2<,+6 .. Wh0 !oes mana$er al /han$e often mean personal /han$e( <ailure to adapt personally, to help other individuals change, or to effectively lead change in a team can have devastating effects on the individuals involved as well as the

organi$ation. #anagers may have to change how they motivate their subordinates, gather new and increased amounts of information, make decisions, and how they negotiate conflicts to support new strategies. Ans)er* p. +1 2.What s meant "0 the rate of /han$e( The rate of change is the pace at which change occurs in the environment. (n a survey of executives described in the text, ?@A of those responding believe the rate of change is increasing. Ans)er* p. +2 +.E4pla n the e4ternal for/es for /han$e. 5xternal forces for change are those in the company*s environment. These forces include competitors, socio"cultural changes, politicalBlegal changes, economic changes, and changes in technology. Ans)er* pp ++,+-.What are the nternal for/es for /han$e( The internal forces for change can be caused by changes in leadership style, new processes or policies, new e'uipment, or responses to change in the external environment. Ans)er* p. +9. = st an! e4pla n the steps n the /han$e pro/ess propose! "0 %&rt =e) n. =ewin*s change process has three steps. 6nfree$ing is the undoing of old patterns. +nce old habits are unfro$en, then you are in a position to move and make the needed changes. #ovement is the changing of perceptions based on the level of certainty or uncertainty associated with the change. 1efree$ing is the process of reinforcing change so that it becomes established. Ans)er* p. +1,-6 1.Wh0 !o people fa l to see the nee! for /han$e( /eople fail to see the need for change because they are locked into powerful past mental maps that have been successful in the past and filter new information to fit old views. 0ometimes, people have an overly simplistic view of the past and the future, failing to see the significance of the changes from the past context to a new one. =astly, people have an almost automatic resistance to unfree$ing attempts because they want to maintain e'uilibrium. Ans)er* pp -1,-2 3. Ho) !oes &n/erta nt0 affe/t the fa l&re to mo7e( The greater the desired change, the greater the uncertainty. There are three dimensions of uncertainty9 uncertainty centered in the change itself, outcome uncertainty, and re'uirement uncertainty. Ans)er* pp -2,--

<. Wh0 are some /han$es &nf n she!( 0ome changes are unfinished due to lack of reinforcement, because the desired results are slow in coming, and because it is hard to recogni$e slow changes when you are in the middle of the process. Ans)er* pp --,-9 16. What /an "e !one to o7er/ome the o"sta/les to /han$e( +bstacles to change can be overcome by creating high contrast to focus people on key differences. nother is by confronting them with the need to change through providing an inescapable experience. Ans)er* p. 96 CHAPTER 2 REVIEW QUESTIONS 1. Wh /h ! mens on of the e4ternal en7 ronment has ha! a 7er0 stron$ mpa/t on the o l "&s ness n R&ss a( The dimension of the external environment that has had a very strong impact on the oil business in 1ussia is the political environment. /olitical instability in Ca$akhstan, 1ussia, and !eorgia made it difficult to negotiate agreements about drilling and transportation. (n addition, economic turbulence and social opposition have also had a 7chilling effect8 on the extraction and development of oil for export. Ans)er* p. 1.. What are the for/es n the $eneral en7 ronment that affe/t "&s ness( The forces in the general environment that affect business are global, socio"cultural, political"legal, economic, and technology. Ans)er* p. 13 2. Wh0 s t mportant to &n!erstan! /&rrent e/onom / /on! t ons* e/onom / /0/les* an! str&/t&ral /han$es( The exact nature of the business and industry determine the specific factors that have the strongest effect on any organi$ation. Current economic conditions are those such as the unemployment rate that determines the cost of labor, interest rates that determine the cost of money and ability of people to borrow to purchase costly items such as homes or automobiles. 5conomic cycles involve the expansion and contraction of the economy or of a specific industry. Cnowing what is happening now and what may come in the future, or whether an industry regularly has peaks and valleys in demand is important for planning purposes. 0tructural changes are those that significantly affect the dynamics of economic activity now and in the future. 0uch structural changes as the shift from an agrarian to an industrial economy, then to a service economy re'uires adaptation by individuals and companies. Ans)er* p. 3. +. What !oes the $ross !omest / pro!&/t meas&re(

!ross domestic product measures the total dollar value of final goods and services produced within a nation*s borders. Ans)er* p. 3-. = st an! e4pla n ea/h of the for/es n the task en7 ronment that affe/t "&s ness. <orces in the task environment are competitors, suppliers, regulators, customers, labor, and strategic partners. Competitors are companies in the same industry who are rivals for your business. The nature of competition, barriers to new entrants, and switching costs are also important to understanding competition. 0uppliers provide the inputs for a business and affect the supply chain. (f there are few suppliers who already have customers, it may be difficult to enter the market or obtain the materials you need. 1egulators include both regulatory agencies and consumer groups. The greater the power of customers, because there are few or because they are united, the greater value they can extract from producers, decreasing profits. =abor affects costs depending on supply and demand, as in other markets. =abor unions, although decreasing in numbers in the 6.0., can exert pressure in many industries to increase wages and benefits that are costly. 0trategic partners are those who work together in an industry to develop cost savings or convenience for companies and customers. Ans)er* p. <. 9. E4pla n # /hael Porter>s mo!el for anal05 n$ the task en7 ronment an! ho) t s &se!. #ichael /orter*s model for analy$ing the task environment does so in terms of five forces that significantly affect the performance and profitability of businesses in the same industry. (t is used to decide whether entering a new industry offers a good opportunity to be profitable. (t is primarily based on analysis of the competition and the difficulty of entering the market relative to intensity of rivalry, strength of suppliers, strength of customers, and availability of substitutes. Ans)er* p. <. 1. What are the ke0 fa/tors an! for/es n an or$an 5at on>s nternal en7 ronment( The key forces and factors in an organi$ation*s internal environment are its owners, Board of 3irectors, employees, and culture. Ans)er* p. << 3. Ho) !oes the ?oar! of @ re/tors affe/t the nternal en7 ronment of an or$an 5at on( The Board of 3irectors represents the owners of an organi$ation and has the general responsibility of overseeing the general management of the company. (t may include individuals from inside and outside the company. Ans)er* p. << <. = st an! e4pla n ea/h of the steps n the en7 ronmental s/ann n$ pro/ess. The steps in the environmental scanning process are9 :. 3efine what type of information you should scan for and where and how you plan to ac'uire it4 D. 1ecogni$e what information is relevant4 E. naly$e the most important issues and determine the

implications4 F. 1espond by deciding what impact this information will have and how to act on it. Ans)er* p. 16. 16. Ho) /an an or$an 5at on respon! to nformat on ! s/o7ere! n the s/ann n$ pro/ess( They can use direct influence to create a desirable situation, form strategic alliances or joint ventures with other companies, develop an agile company that is able to respond to change 'uickly, and manage information by using feedback to inform the first step of the process. Ans)er* p. 162 CHAPTER + REVIEW QUESTIONS 1.Wh0 s t mportant for mana$ers to &n!erstan! /&lt&re n to!a0>s "&s ness )orl!( #anagers must understand culture today because it is a strong driver of behavior. #anagers who understand culture can understand how to leverage it to help accomplish goals and achieve the strategic aims of the organi$ation. Ans)er* p. 119 .. @ef ne /&lt&re an! l st the three le7els of /&lt&re. Culture is a learned set of assumptions, values, and behaviors that have been accepted as successful enough to be passed on to newcomers. The three levels of culture are artifacts which are visible manifestations of a culture, values which are the enduring beliefs that specific end states are preferable to others, and assumptions or beliefs about the fundamental aspects of life. Ans)er* pp. 11-* 1.1 2. E4pla n )hat s meant "0 a 7al&e an! $ 7e an e4ample. value is a belief that a specific conduct or end state is preferred to others. &onesty, for example, is preferable in 6.0. culture and is usually espoused publicly in organi$ations. Ans)er* p. 1.1 +. = st an! e4pla n the s 4 "as / ass&mpt ons. The six basic assumptions are9 :. &umans relation to the environment is either to live harmoniously with it or to dominate it4 D. &uman nature is that people like to work or they are naturally la$y4 E. &uman relationships are such that people exist because of others and have an obligation to them or that they have certain individual rights and freedoms4 F. &uman activity assumes people should react to and enjoy the present or create their own destinies and must plan for the future4 G. Truth is what is socially accepted or it exists objectively4 H. Time is either like a lake and what you don*t use today will be there for you tomorrow or it is like a river, what you don*t use wisely today is gone forever. Ans)er* p. 1..

-. Ho) )o&l! Theor0 A an! Theor0 B mana$ers ! ffer n the )a0 the0 treat emplo0ees( Theory I managers believe they have to coerce, control, direct, and threaten employees to make them work. Theory % managers believe people want to work and are capable of self"direction, self control, and commitment. Ans)er* p. 1.2 9. Ho) !oes Hofste!e>s po)er ! stan/e ! mens on affe/t a mana$er>s "eha7 or n the U.S. an! In! a( /ower distance is the extent to which people accept power and authority differences in a group, not whether it exists. #anagers in the 6.0. are more likely to eliminate status barriers and consult with their employees than those in countries such as (ndia, the /hilippines, and -ene$uela. Ans)er* p. 1.+ 1. E4pla n )hat s meant "0 a l near ass&mpt on a"o&t t me. Cultures tend to have similar assumptions about time. Those who view time as a river generally have linear assumptions about time. That is, like a river it moves in linear fashion and what isn*t used well will be gone tomorrow, creating an emphasis on time management. Ans)er* p. 1.3. What are the ! mens ons on )h /h )e /an meas&re the stren$th or )eakness of a /&lt&re( The dimensions on which we can measure the strength or weakness of a culture are :. The extent to which they are widely shared among group members, and D. The extent to which they are deeply held. The strength of the culture relates to the severity of punishments for violating its values. Ans)er* p. 121 <. Wh0 s t mportant to !ent f0 the /ore 7al&es n a /&lt&re( (t is important to identify the core values in a culture because culture can be a mechanism for understanding and guiding employee behavior, interacting with those in the culture who are in the task and general environment, and for successfully creating change in organi$ations. Ans)er* p. 12+ 16. = st the metho!s mana$ers /an &se to /han$e or$an 5at onal /&lt&re. #ethods managers can use to change organi$ational culture include rewards and compensation, performance appraisal, sociali$ation, selection, stories, and symbols. Ans)er* p. 12CHAPTER REVIEW QUESTIONS

1. E4pla n )hat s meant "0 mana$er al eth /s an! )h0 the0 are mportant. #anagerial ethics is the study of morality and standards of business conduct. -iolations of ethical conduct and social responsibility can lead to negative publicity, destroy stock prices and share holder value, and make it difficult to recruit high"'uality employees. Well"managed ethical behavior can have positive conse'uences for employees, customers, shareholders, and communities. Ans)er* p. 1-1 .. What are the ke0 ! fferen/es "et)een mana$er al eth /s an! /orporate respons " l t0( 5thics are based on individual views of morality that impact organi$ations. Corporate social responsibility is the obligation that organi$ations have to their constituencies such as shareholders, employees, customers, and citi$ens at large. Ans)er* p. 1-1 2. = st an! e4pla n the fo&r approa/hes to the format on of an eth /al !e/ s on. The utilitarian approach focuses on the conse'uences of the action. The moral rights approach focuses on examination of the moral standing of actions, independent of their conse'uences. The universal approach is choosing a course of action that you believe can apply to all people under all situations. The justice approach focuses on how e'uitable the costs and benefits of actions are distributed. Ans)er* p. 1-9,1-< +. What are the ke0 elements of ! str "&t 7e* pro/e!&ral* an! /ompensator0 '&st /e( C 7e an e4ample of ho) ea/h /o&l! "e &se!. 3istributive justice is the e'uitable distribution of rewards and punishments based on performance. <or example, a manager cannot distribute rewards such as bonuses based on arbitrary characteristics instead of the person*s contribution to the goals of the organi$ation. /rocedural justice ensures that people affected by managerial decisions consent to the decision"making process and that the process is administered fairly. <or example, employees are entitled to a fair hearing before termination. Ans)er* p. 1-3,1-< -. Wh0 s t mportant to &n!erstan! moral ntens t0( #oral intensity is the degree to which people see an issue as an ethical one. #anagers can use this framework to anticipate the moral intensity of an issue and to diagnose the reasons for differing views about the intensity of a moral issue among people. Ans)er* p. 1-<,196 9. = st the s 4 fa/tors that nfl&en/e moral ntens t0 an! $ 7e an e4ample of ea/h. :. #agnitude of the conse'uences assesses the impact of the outcome of a given action. <or example, the layoff of :,;;; workers would have more impact than the layoff of :;;. D. 0ocial consensus is the extent to which members of a society agree that an act is either good or bad. <or example, there is greater consensus among more people in the 6.0. that drunk driving is wrong than that speeding is wrong. E. /robability of effect means that the higher the probability of the conse'uence, the more intense the sense of ethical

obligation. <or example, the more proof of the link between smoking and cancer, the more intensely people feel about restricting advertising and smoking of cigarettes in public spaces. F. Temporal immediacy is a function of the interval between the time the action occurs and the onset of its conse'uences. <or example, the catastrophic changes that might occur as a result of global warming don*t have immediacy, because they aren*t likely to occur for another G; years. G. /roximity is the physical, psychological, and emotional closeness the decision maker feels to those affected by the decision. (t may include factors such as nationality, cultural background, ethnic similarity, organi$ational identification, age, or socioeconomic similarity. <or example, a natural disaster or epidemic that occurs in the 6.0. will evoke greater moral intensity than one in another country. H. Concentration of effect is the extent to which conse'uences are focused on a few individuals or dispersed across many. <or example, laying off :;; people has a lower magnitude of effect than :,;;;, but laying off :;; in a town of G,;;; has greater magnitude than laying off :,;;; in a city of :; million. Ans)er* p. 196,191 1. Ho) /an emplo0ees "e nfl&en/e! to make eth /al !e/ s ons( 5mployees can be influenced to make ethical decisions by adopting and promulgating a Code of 5thics, reinforcing the Code with actions such as appointing an ombudsman, training employees about ethical issues, rewarding ethical behavior, and providing processes and protection for whistleblowers. The greatest impact on the ethics of an organi$ation is the role modeling of top managers. Ans)er* p. 19+,116 3. E4pla n an! /ompare the eff / en/0 an! stakehol!er approa/hes to so/ al respons " l t0. The efficiency approach is the concept that a manager*s social responsibility is to maximi$e profits for the owners of the business. The social responsibility perspective is that society grants existence to firms, which therefore have responsibilities and obligations to society as a whole. (n the stakeholders approach, managers must consider the individuals or groups who have an interest in and are affected by the organi$ation. Ans)er* p. 11.,11<. = st the ma'or stakehol!ers a /orporat on m&st /ons !er n mak n$ so/ all0 respons "le !e/ s ons. n organi$ation*s major stakeholders are its customers, employees, financiers, suppliers, communities, society at large, and shareholders. Ans)er* p. 11+ 16. = st an! e4pla n the response strate$ es /ompan es /an take to ss&es of so/ al respons " l t0. Companies may choose among the following strategies9 :. 3efenders believe they must fight any effort to restrict or regulate their activities and profit"making potential4 D. ccommodators will change when legally compelled to do so4 E. 1eactors believe they should respond to significant pressure even when not legally re'uired to do so4 F.

nticipators believe they owe it to society to anticipate and avoid actions with potentially harmful conse'uences even if not pressured or legally re'uired to do so. Ans)er* p. 119,111 CHAPTER 9 REVIEW QUESTIONS 1. What s /ompet t 7e a!7anta$e an! ho) s t /reate!( Competitive advantage is the ability of a firm, over the long term, to win consistently in a competitive situation. Ans)er* p. 1<+ .. What s the ! fferen/e "et)een n m ta" l t0 an! s&"st t&t on( (nimitability is the creation of barriers that make it hard for others to imitate your competitive advantage. 0ubstitution refers to whether the customer can substitute another product or service for the need you fulfill. Ans)er* p. 1<+,1<2. E4pla n appropr a" l t0 an! s&pernormal ret&rns. ppropriability 'uestions whether a company can actually capture the profits to be made in a business. 0upernormal returns are greater than average profits earned through greater"than"average cost"price margins. Ans)er* p. 1<9 +. = st an! e4pla n the steps n the strate$ / plann n$ pro/ess. @ a$ram the pro/ess. The steps in the strategic planning process are to determine strategic intent, define organi$ational mission, analy$e the environment, set objectives, determine re'uirements and assess resources, develop action plans, implement plans, and monitor outcomes. The process re'uires assessment and feedback. Ans)er* p. 1<1 -. What are the poss "le /omponents of a m ss on statement( The possible components of a mission statement are company philosophy, company identity or self"concept, principal products or services, customers and markets, geographic focus, obligation to shareholders, and commitment to employees. Ans)er* p. 1<3 9. E4pla n ho) strate$ / o"'e/t 7es ! ffer from strate$ / ntent. 0trategic objectives translate the strategic intent and mission of the organi$ation into concrete and measurable goals. They allocate resources, reach a shared understanding of priorities, delegate responsibilities, and hold people accountable for results. Ans)er* p. 1<< 1. = st an! e4pla n the $ener / strate$ es an or$an 5at on /o&l! a!opt. +ne generic strategy an organi$ation can adopt is cost leadership, through which a company strives to be the lowest cost producer of a product while charging slightly less

than average prices to earn supernormal returns. nother strategy is differentiation which makes a product or service different from competitors on dimensions highly and widely valued by consumers, allowing them to charge premium prices. The cost of the differentiating features has to be less than the price consumers are willing to pay for it, creating high levels of return. =imited scope is another strategy that reduces the volume and revenue a firm can earn but focuses on a niche, or customer segment, which can earn supernormal returns. Ans)er* p. .66,.6. 3. Ho) !oes the 7al&e /ha n relate to /&stomer ser7 /e( The value chain is the set of key activities that directly produce or support the production of what a firm ultimately offers to its customers. #ichael /orter*s approach states that managers must assess the value each activity adds for the customer rather than its cost. The absolute value of a product or service is a function of how much customers are willing to pay and how many are willing to purchase it. Ans)er* p. .6-,.69 <. E4pla n ho) the pro!&/t l fe /0/le s &se! as a strate$ / tool. /roduct life cycle pictures whether a product is in its birth, growth, maturity, or decline based on how widely and 'uickly customers have adopted it. s products move from birth to decline, management makes decisions about product development and improvement, promotion, and otherwise investing to extend its life and profitability. Ans)er* p. .6< 16. Ho) /an the ?oston Cons&lt n$ Cro&p>s matr 4 "e &se! to anal05e an or$an 5at on>s "&s nesses( The BC! matrix can be used to analy$e a company*s business by assuming that businesses have multiple products which are at different stages of the /roduct =ife Cycle. The matrix helps managers plan future corporate strategic plans for placing the firm*s investments. The matrix places each product in one of four categories based on potential market growth and the product*s current performance or market share. Ans)er* p. .11,.12 11. What are the elements of SWOT anal0s s an! ho) /an t "e &se! to !e7elop strate$ / plans( 0W+T analysis, also known as situation analysis, is used to develop strategic plans by re'uiring managers to look at a firm*s 0trengths, Weaknesses, +pportunities, and Threats for continued operation within its dynamic environment. Ans)er* p. .1+,.11.. Ho) !oes #/% nse0 Cons&lt n$>s Se7en S>s mo!el help to mplement strate$ es( The 0even 0 framework helps implement new strategies by analy$ing their fit and congruence within the existing company framework. (t assesses whether there is a need to change old systems before implementing new strategies. Ans)er* p. .19,.11

CHAPTER 1 REVIEW QUESTIONS 1.Wh0 s t mportant to &n!erstan! or$an 5at onal str&/t&re an! !es $n( (t is important to understand organi$ational structure and design to know how labor is divided into tasks and coordinated, how the organi$ation responds to environmental demands, and divides authority relationships among groups, managers, and other employees. 6nderstanding the principles of organi$ation structure makes it possible to design effective organi$ations that will be a good fit between the environment and company strategy. Ans)er* p. ..< ..Wh0 m&st or$an 5at onal !es $n "alan/e ! fferent at on an! nte$rat on( 3ifferentiation is based on speciali$ation of task and knowledge necessary in organi$ations because no one person is able to do everything. This creates barriers between groups and people. (ntegration is then needed to keep people from veering off in separate directions and to coordinate them in achieving the goals of the entire organi$ation. Ans)er* p. .26 2. @ef ne the three t0pes of nter!epen!en/e an! $ 7e an e4ample of ea/h. /ooled interdependence occurs when various groups are largely independent in their functions, but contribute collectively to a common output. <or example, a company producing medical supplies might have separate departments each sending its product to the same hospital independent of one another. 0e'uential interdependence exists when the output of one group becomes the input of another group. <or instance, the catalytic converters made by one group are needed to complete the automobile as it is assembled. 1eciprocal interdependence is when two groups depend on one another for inputs. <or instance, when marketing research provides the new product development team with ideas for new products and the new product development team provides research new products to be tested by customers. Ans)er* p. .21,.2. +. What are some of the me/han sms or$an 5at ons &se to mpro7e nte$rat on( 0ome of the mechanisms organi$ations use to improve integration are rules, goals, and values. <ormali$ation using lines of authority, unity of command, and organi$ation structures improve integration. (nformal events, face to face communication such as nemawasi as used in Japan, and other informal communication can improve integration. Ans)er* p. .2. -. Ho) !oes &n/erta nt0 affe/t or$an 5at on str&/t&re( The greater the uncertainty about inputs, throughputs, and output factors, the greater the need for coordination and integration. s events unfold, individuals and organi$ational units have to respond in real time. Ans)er* p. .2.

9. What s the l ne of a&thor t0 an! ho) s t ! fferent from &n t0 of /omman!( The line of authority specifies who reports to whom. 6nity of command is the idea that an employee should have only one boss. Ans)er* p. .21. Ho) !oes the or$an 5at on>s en7 ronment affe/t )hether t s flat or tall( Tall and formal organi$ations tend to be slower at making decisions and responding to changes in the business environment. <latter organi$ations have fewer layers of management to work through to get a decision. more dynamic environment re'uires an organi$ation that is flatter and more able to respond to change more 'uickly. Ans)er* p. .23. Wh0 s t mportant to &n!erstan! span of /ontrol( 0pan of control refers to the number of employees reporting to any given supervisor. This is affected by the nature of the task, the subordinates* capabilities, and the manager*s capabilities. The narrower the span of control, the more closely supervised employees will be. >arrower spans of control create taller organi$ations. Ans)er* p. .2<. = st fo&r /ommon or$an 5at on str&/t&res an! the a!7anta$es an! )eaknesses of ea/h. <unctional structures organi$e a firm around traditional functional areas such as marketing, production, accounting, and finance. dvantages of functional structures are that it is well suited to small medium si$ed firms with limited product diversification, facilitates speciali$ation of functional knowledge, reduces duplication of functional resources, and facilitates coordination within functional areas. Weaknesses of functional structures are that it creates problems coordinating across functional groups, creates restricted views of organi$ational goals, can limit attention paid to customers and is slower in response to market changes, and burdens chief executives with decisions that involve multiple functions. /roduct structures organi$e a firm by specific products or related products. dvantages of product structures are improved focus on products and customers, financial performance is easier to measure, more responsive to market changes, and it reduces the burden of top management for decisions. Weaknesses of product structures are duplication and loss of economies of scale for functional areas create problems for customers who purchase products across multiple groups, greater difficulty coordinating across product groups, and it creates more conflicts between group and organi$ation goals. 3ivision structures organi$e by groups of related products. dvantages of division structure are reduction of functional duplication, customer focus can increase depending on the closeness of the product families, and cross"product and cross"regional coordination is easier within the division. Weaknesses of division structure are that this is appropriate only for large, diversified companies with significant numbers of products and product families, it can inhibit cross"division coordination, and it can create conflicts between division objectives and corporate objectives. Customer structures organi$e by categories of customers. dvantages of a customer structure are that it facilitates better understanding of specific customers, increases responsiveness to changes needed by customers and changes in competitive offerings. Weaknesses of a customer

structure are duplication of functional resources in each customer unit, difficulty creating coordination between customer units and corporate objectives, and it can fail to leverage technology and other strengths in one unit to others. !eographicB1egional structures an organi$ation around geographical areas or regions. dvantages of a geographic structure are that it leads to in"depth understanding of markets, customers, governments, and competitors in a given area and makes it more responsive to change there. (t fosters strong accountability by managers in each area. Weaknesses of a geographic structure are that it inhibits coordination and communication between regions, creates conflict between regions, duplicates functional resources, inhibits economies of scale, and can create competition across regions that are a problem for customers who operate across regions. #atrix structures consist of two structures imposed on one another. dvantages of a matrix structure are that it facilitates information flow throughout the organi$ation, enhances decision 'uality, is best suited to a changing business environment, and facilitates the flexible use of human resources. Weaknesses of a matrix structure are that it creates difficulty for performance appraisals since people each have more than one boss, can inhibit the ability to respond to changing conditions 'uickly, diffuses accountability, and leads to conflict between those with differing perspectives within the work units. #ixed organi$ational structures are often used to incorporate the strengths of one type of structure while eliminating its weaknesses. Ans)er* p. .+6,.+1 16. What are the /hallen$es n mo7 n$ from a !omest / to an nternat onal str&/t&re( The challenges in moving from a domestic to an international structure are in understanding the nature of the firm and its structure, the extent of diversification, and the extent of foreign sales. Ans)er* p. .-CHAPTER 3 REVIEW QUESTIONS 1. Wh0 s t mportant for or$an 5at ons to plan( /lanning is the decision"making process that focuses on the future of the organi$ation and how it will achieve its goals. Ans)er* p. .16 .. E4pla n )hat s meant "0 strate$ /* operat onal* an! ta/t /al plans. 0trategic plans focus on the broad future of the organi$ation and incorporate both external environmental demands and internal resources into managers* actions. Tactical plans translate strategic plans into specific goals for specific parts of the organi$ation. +perational plans translate tactical plans into specific goals and actions for small units of the organi$ation and focus on the near term. Ans)er* p. .16,.11 2. Wh /h le7el of the or$an 5at on s l kel0 to !e7elop ea/h of the follo) n$D strate$ / plans* operat onal plans* an! ta/t /al plans(

0trategic plans are most likely to be developed by the top level of the organi$ation. Tactical plans are a more specific fit within the strategic plan and are developed for separate parts of the organi$ation. +perational plans translate tactical plans into specific goals for small units of the organi$ation and are shorter term. Ans)er* p. .12 +. Ho) !o the plans ma!e at ea/h le7el relate to one another( /lans are hierarchical in nature, reflecting the organi$ation*s structure. /lans made at all levels may differ from each other on time hori$on, scope, complexity, impact and interdependence, but they should be aligned and integrated with each other. Ans)er* p. .1+ -. = st an! e4pla n the a/t 7 t es of ea/h step n the plann n$ pro/ess. The first step is analy$ing the environment using forecasts, benchmarks, contingency plans, scenarios, and competitor analysis. >ext is setting objectives and priorities. +nce objectives are set, organi$ations have to determine the re'uirements and assess the resources they have to carry them out. ction plans establish timing and se'uence of the steps to be taken and who will be accountable for each part of the plan. (mplementation is carrying out the steps, monitoring them, and adjusting as needed. #onitoring outcomes re'uires measuring whether objectives have been achieved and analy$ing reasons why they were or were not. Ans)er* p. .19. Wh0 s t mportant to ha7e pr or t es amon$ an or$an 5at on>s o"'e/t 7es( /riorities are needed because all objectives are not e'ual in importance or value. 0ome may also be more important now than later. Ans)er* p. .1< 1. What are the elements of an a/t on plan( The elements of an action plan are se'uence, timing, and accountability. Ans)er* p. .32 3. E4pla n )h0 "&!$et n$ s an mportant part of plann n$ an! !ef ne t)o approa/hes to the "&!$et n$ pro/ess. Budgets are used to 'uantify and allocate resources to specific activities. (ncremental budgeting is an approach to budgeting that uses the approved budget of the previous year and then presents arguments as to why the upcoming budget should have more or less in various categories. Kero"based budgeting assumes that all allocations of funds must be justified from $ero each year. Ans)er* p. .31 <. = st an! e4pla n the /hara/ter st /s of :S#ART; $oals. 0# 1T is an acronym to remember five key characteristics of good goals. They are Specific, #easured, Agreed, Realistic, and Time bound. Ans)er* p. .33,.<1

16. Ho) s #?O &se! n $oal sett n$( #B+ is used to motivate and measure employee performance. (t involves individuals in setting goals that are challenging but achievable and align personal goals with the goals of the organi$ation. 5mployees involved in setting their own goals are more committed to achieving them. Ans)er* p. .<1 CHAPTER < REVIEW QUESTIONS 1. What are the ass&mpt ons on )h /h the rat onal !e/ s on mo!el s "ase!( The rational decision model is based on the assumptions that problems are clear, objectives are clear, people agree on criteria and weights, all alternatives are known, all conse'uences can be anticipated, and decision makers are rational. Ans)er* p. 261 .. = st an! e4pla n the steps n the /lass /alErat onal mo!el. 0tep : is identifying the decision situation, whether perceived as a problem or opportunity. 0tep D is to identify desired objectives, criteria for alternatives, and relative weightings of the criteria. 0tep E is to generate alternatives by reviewing past solutions or creating new ones. 0tep F analy$es alternatives for feasibility and best results. 0tep G is the selection of an alternative. 0tep H is implementation of the decision identifying reasons for resistance, chronology and se'uence of actions, re'uired resources, and delegation of tasks. 0tep @ monitors and evaluates the results of the decision. Ans)er* p. 26. 2. Ho) !oes the /lass /al rat onal mo!el ! ffer from the "o&n!e! rat onal t0 mo!el( These two models differ in their assumptions about information available and what is the 7best8 decision. 6nlike the rational model, bounded rationality assumes that people usually settle for acceptable rather than maximum options because the decisions they confront typically demand greater information processing capabilities than they possess. Ans)er* p. 26< +. E4pla n Peter Soel"er$>s mpl / t fa7or te mo!el. The implicit favorite model, also known as the retrospective decision model, focuses on how decision makers attempt to rationali$e their choices after they are made. Ans)er* p. 216 -. E4pla n the ! fferen/e "et)een pro$ramme! an! non,pro$ramme! !e/ s ons an! $ 7e an e4ample of ea/h. programmed decision is a standard response to a simple or routine problem, such as reimbursement for travel expenses or college admissions decisions. non"programmed decision is about a problem that is either poorly defined or uni'ue, such as whether to purchase new e'uipment or a new facility. Ans)er* p. 211

9. @es/r "e Cresham>s la) of plann n$ an! )h0 t s mportant. !resham*s law of planning is the tendency for managers to let programmed activities overshadow non"programmed activities. Ans)er* p. 21. 1. = st the "enef ts an! pro"lems of $ro&p !e/ s on,mak n$. !roups can accumulate more knowledge and facts, have a broader perspective, are more likely to support the decision, and serve useful communication and motivation functions. !roups often work more slowly than individuals, involve compromise that may lead to less than optimal decisions, can be dominated by one or a few members, and can inhibit the ability of managers to act 'uickly when necessary. Ans)er* p. 211 3. E4pla n ho) the Vroom,Betton mo!el helps mana$ers kno) )hen to &se part / pat 7e !e/ s on mak n$. This model helps managers decide which situations are best served by using groups to make decisions, when it is appropriate, and to what level groups should participate in making decisions. Ans)er* p. 2.6 <. @es/r "e )hat s meant "0 Cro&pth nk an! ho) t /an "e o7er/ome. !roupthink is a mode of thinking in which pursuit of agreement among members becomes so dominant that it overrides a realistic appraisal of alternative courses of action. (t can be overcome by using strategies to encourage development of more alternatives and appointing a 7devil*s advocate8 to 'uestion those offered. Ans)er* p. 2.2 16. Ho) /an mana$ers pre7ent the !e/ s on error kno)n as es/alat n$ /omm tment( By encouraging all to think of past investments as sunk costs that cannot be recovered, focusing on the importance of matching current decisions to current conditions as they change, encouraging each member to evaluate prospects of future outcomes critically or bring in outside experts to challenge the group*s expectations, and appointing a devil*s advocate to challenge the majority decision. Ans)er* p. 2.1,2.3 CHAPTER 16 REVIEW QUESTIONS 1. @ef ne lea!ersh p an! e4pla n )h0 t s a so/ al nfl&en/e pro/ess. =eadership is defined in the text as an interpersonal process involving attempts to influence other people in attaining some goal. (t is a social influence process because it involves other people, most often as they interact in groups and organi$ations. Ans)er* p. 2-6 .. What !oes strate$ / lea!ersh p mean an! )ho sho&l! &se t(

0trategic leadership has meant leadership exhibited by those who are members of top management, but has expanded to mean leadership exhibited at all levels of the organi$ation with a strategic focus. (t involves thinking and acting strategically while working with others to create a viable future for the organi$ation. Ans)er* p. 2-1 2. = st an! e4pla n the t0pes an! so&r/es of po)er an! $ 7e an e4ample of ea/h. /osition powers include legitimate, reward, and coercive power. /ersonal powers include expert and referent power. =egitimate power is granted to a person by an organi$ation based on the person*s position, such as manager, and is sometimes called authority. 1eward power is based on the person*s ability to provide valued rewards to other people, such as pay increases, promotions, or recognition. Coercive power is based on the ability to punish others through withholding desired rewards such as pay raises or administering punishments such as reprimands or dismissal. /ersonal power is based on the individual, rather than a person*s position in the organi$ation. 5xpert power is based on having knowledge useful to others, such as legal knowledge. 1eferent power derives from a person*s ability to attract or have others identify with him or her. <or example, an employee may imitate an admired manager*s actions. Ans)er* p. 2-. +. What are fo&r ss&es for mana$ers to /ons !er )hen &s n$ po)er( <our issues for a manager to consider when using power are9 &ow much to use in a given situationL Which types of power should be usedL &ow can power be put to useL 0hould power be sharedL Ans)er* p. 2-3 -. = st f 7e nfl&en/e ta/t /s an! )hen ea/h s &sef&l. 1ational persuasion can be used when there is time to gather information for a choice among options. pprising can be used to build alliances with other managers to reach a commonly beneficial goal. Consultation can be used to win the support of a work group to a proposed change. /ressure can be used when time is short and an employee has missed deadlines in the past. =egitimating tactics can be used to get compliance with a company policy, procedure or rule. Ans)er* p. 2-< 9. Wh0 s empo)erment a &sef&l lea!ersh p tool an! ho) /an t "e &se! effe/t 7el0( (t is an important leadership tool because increased participation in decision making and control of work increases commitment to achieving goals. (t can be used effectively to increase decision making skills and confidence in subordinates and cope successfully with major changes and transitions. Ans)er* p. 296 1. What s meant "0 the :lo/&s of lea!ersh p; an! )h0 s t mportant to &n!erstan!( The 7locus of leadership8 is the intersection of the basic components of the leadership process9 leaders, followers, and the situation. (t is important to understand because each

element influences and is influenced by the others two variables. alter how the other two factors interact. Ans)er* p. 291

change in one will

3. = st f 7e tra ts that resear/h has sho)n to "e mportant to effe/t 7e lea!ersh p. <ive traits important to effective leadership are9 drive, motivation to lead, honesty and integrity, self"confidence, and emotional maturity. Ans)er* p. 291 <. = st the elements of emot onal ntell $en/e an! so/ al ntell $en/e an! e4pla n )h0 the0 are mportant to the lea!ersh p pro/ess. The elements of emotional intelligence are self"awareness, self"regulation, motivation, empathy, and social skill. The elements of social intelligence are social perceptiveness, behavioral flexibility, and 7savvy8. They are important to the leadership process because those who lead must understand themselves, be perceptive, and able to read others to be effective in motivating them and flexible in differing situations. Ans)er* pp. 292,29+ 16. What !o follo)ers "r n$ to the pro/ess an! ho) !oes =#A affe/t t( <ollowers bring their own personality traits, past experiences, knowledge, skills and abilities, and beliefs and attitudes. =#I Theory is a relationship"based approach to leadership that recogni$es the importance of followers in a strong, mutually respectful exchange process between leaders and followers. lthough they vary considerably, the development of such relationships is a process that can lead over time to strong influence over the behavior of subordinates. Ans)er* p. 291 CHAPTER 11 REVIEW QUESTIONS 1. What are the t)o ! mens ons of lea!er "eha7 or fo&n! "0 ?lake F #o&ton an! the !eal /om" nat on of them( Blake and #outon proposed that leaders should view their role as consisting of two primary dimensions9 focus on tasks to be accomplished and focus on the people performing them. Those leaders who would be most effective would be those highest in both dimensions. Ans)er* p. 231 .. What are the fo&r t0pes of "eha7 or !ent f e! "0 Herse0 an! ?lan/har! an! )hen s ea/h appropr ate( The four types of behavior identified in &ersey and Blanchard*s 0ituational #odel are9 /articipating, Telling, 3elegating, and 0elling. /articipating is appropriate when followers are high in ability and low in motivation4 telling is appropriate when ability and motivation are low4 delegating is appropriate when ability and motivation are high4 selling is appropriate when ability is low and motivation is high. Ans)er* p. 23.

2. What s the ma'or pr n/ ple n G e!ler>s theor0( The major principle in <iedler*s theory is that it is possible to identify the types of situations in which task"oriented or person"oriented leaders would be most effective. Ans)er* p. 23+ +. What s a lea!er>s ma n respons " l t0 a//or! n$ to Ho&se>s theor0 an! ho) /an t "e met( leader*s main responsibility, according to &ouse*s theory, is to increase subordinate satisfaction and effort by increasing personal payoffs for goal attainment and making the paths to the payoffs easier. Ans)er* p. 23-. What s the p&rpose of the Vroom,Betton mo!el( The purpose of the -room"%etton model is to prescribe standards to determine the extent to which subordinates should be allowed to participate in decision"making. Ans)er* p. 239 9. Name an! e4pla n s 4 s&"st t&tes for lea!ersh p. :. bility, experience, and training can substitute for leadership in fast"paced jobs that re'uire many decisions and subordinates have to rely on their experience, training, and judgment. D. &ighly educated professionals would not need much supervision as professional standards are part of their education. E. (ntrinsically satisfying work such as new product development or teaching does not depend on extrinsic rewards from supervisors. F. Cohesive work groups with positive performance norms influence group members to conform or be excluded without supervision. G. dvisory or support staff can provide training or information the supervisor doesn*t have. H. 3irect feedback from the task can provide intrinsic satisfaction and rewards from achieving goals. Ans)er* p. 231 1. Ho) !oes mana$ement ! ffer from lea!ersh p( #anagement differs from leadership as explained by several scholars in that leadership is more concerned with developing vision, goals, new directions, and inspiring subordinates. #anagers are more concerned with mundane tasks of dealing with interpersonal conflict, planning, organi$ing, and carrying out goals set by others. To be effective, managers must be both leaders and managers. Ans)er* p. 23< 3. = st some of the tra ts of a /har smat / lea!er an! e4pla n the pro"lems ) th /har smat / lea!ersh p. 0ome of the traits of a charismatic leader are strong needs for power, high levels of self" confidence, and strong beliefs in their own ideas. Charismatic leaders do not fit well in many situations because they are overpowering and they can lead in bad directions as well as good. Ans)er* p. 2<1

<. E4pla n the ! fferen/e "et)een transa/t onal an! transformat onal lea!ers. Ill&strate ) th e4amples. Transformational leaders are inspiring and use coaching to empower others to achieve major organi$ational change. n example would be Jeff Be$os who was able to transform ma$on.com from a small, new company to the organi$ation it is today. Transactional leaders are those who focus on an exchange of rewards and self interest to accomplish routine changes. #anagers at all levels exhibit this behavior in rewarding employees for work with bonuses, promotions, or other positive recognition. Ans)er* p. 2<+ 16. Wh0 an! ho) are lea!ersh p st0les affe/te! "0 nat onal /&lt&re( =eadership styles are affected by national culture because cultures have different values, re'uiring leaders to act differently. <or example, the pursuit and recognition of individual achievement accepted in the 6.0. would not be accepted well in sian cultures. There are also forces, such as the spread of industriali$ation, that make values such as cooperation and dependability more similar across cultures. Ans)er* p. 2<1 CHAPTER 1. REVIEW QUESTIONS 1. @ef ne mot 7at on an! the /omponents that !eterm ne t n or$an 5at ons. #otivation is the set of forces that energi$e, direct, and sustain behavior. The components that determine it in organi$ations are characteristics of the individual, characteristics of the job, and characteristics of the work situation. Ans)er* p. +1. .. @ ffer "et)een /ontent an! pro/ess theor es of mot 7at on an! $ 7e an e4ample of ea/h. Content theories focus on what needs a person is trying to satisfy and what features of the work environment seem to satisfy those needs. n example of a content theory is #aslow*s &ierarchy of >eeds. /rocess theories focus on how different variables can combine to influence the amount of effort put forth by employees. n example of a process theory is dam*s 5'uity Theory or -room*s 5xpectancy Theory. Ans)er* p. +1+ 2. = st the le7els of #aslo)>s h erar/h0 se8&ent all0 an! $ 7e an e4ample of ea/h. The five needs in #aslow*s &ierarchy are9 /hysiological >eeds such as food, clothing, and shelter4 0ecurity or safety needs such as the need for protective clothing or e'uipment in the workplace4 0ocial belonging is the need to be part of a group4 5steem needs are those for a sense of self"worth, competence, and recognition of it by others4 0elf" actuali$ation is the need to develop one*s own competence and uni'ue capabilities through advancement and development activities. Ans)er* pp. +1-,+13 +. What ! ! Al!erfer /ontr "&te to mot 7at on theor0(

lderfer added to #aslow*s &ierarchy the idea that more than one level of need can be active at one time, that a lower level need not be completely satisfied before higher level needs emerge, and that if frustrated in reaching a higher level need, a person may revert to a lower level need. Ans)er* pp. +11,+13 -. What s the ! fferen/e "et)een mot 7ators an! h0$ ene fa/tors a//or! n$ to Her5"er$( #otivators are intrinsic factors related to doing the job that can increase job satisfaction. &ygiene factors are extrinsic elements associated with conditions surrounding the job that can prevent dissatisfaction, but which will not increase satisfaction. Ans)er* pp. +.6,+.1 9. What are the /omponents of the Ho" Chara/ter st /s #o!el an! ho) /an the0 "e &se! "0 mana$ers( The components of the Job Characteristics #odel are core job characteristics such as skill variety, task identity, task significance, autonomy and feedback, the critical psychological states they create, and the outcomes that result. #anagers can use this model to design jobs that have more of the desired core dimensions to increase worker satisfaction and effort. Ans)er* p. +.. 1. What s the e8&at on !e7elope! "0 Vroom n E4pe/tan/0 Theor0( The e'uation developed by -room in 5xpectancy Theory is 5ffort M ,5 /. x ,/ +. x 5ffort is e'ual to the expectancy that 5ffort will lead to good /erformance times the expectancy that high /erformance will lead to desired +utcome times the -alence or value that a person attaches to the +utcome. Ans)er* p. +.9 3. = st an! e4pla n the t0pes of re nfor/ement that mana$ers are a"le to &se an! $ 7e an e4ample of ea/h. /ositive reinforcement provides a desirable conse'uence to behavior, for example a supervisor receives a bonus for each day a project is completed ahead of schedule. >egative reinforcement removes an undesirable conse'uence, for example management removes unpaid overtime from a supervisor*s job re'uirements to encourage applicants for the job. /unishment provides an undesirable conse'uence for an unwanted behavior, such as docking pay for employees who are late to work. 5xtinction removes a desirable conse'uence, such as eliminating suggestions for improvement when the person making them receives no recognition. Ans)er* pp. +26* +2.,+22 <. What are the ma'or so/ al nfl&en/es on mot 7at on an! ho) are the0 affe/te! "0 /&lt&ral ! fferen/es(

The major social influences on motivation are the immediate work group, supervisors, subordinates, and the organi$ation*s culture. They are affected by the core values of the culture. (n the 6.0. the core values are competition, risk"taking, material possessions, and freedom. (n Japan they are group harmony and belonging, and in rabic countries they are reputation, family security, religious belief, and social recognition. Ans)er* p. +2+ 16. Wh0 s t mportant for mana$ers to &n!erstan! the /entral t0 of )ork as the0 plan mot 7at onal metho!s for emplo0ees( (t is important for managers to understand the centrality of work as they plan motivational methods for employees because the importance of work in an individual*s life as balanced against leisure, family, and religion changes with different categories of employees and different cultures. Ans)er* p. +23 CHAPTER 12 REVIEW QUESTIONS 1. Ho) are $ro&ps an! teams s m lar( @ fferent( group is a set of people, limited in number, who have some degree of mutual interaction and shared objectives. team is a type of group that has additional characteristics such as a high degree of interdependence, coordinated interaction, and a strong sense of personal responsibility for achieving specified group outcomes. Ans)er* p. +-6 .. What are the t0pes of formal $ro&ps( The three types of formal groups usually found in organi$ations are command groups, projectBtask forces, and committees. Ans)er* p. +-1 2. Wh0 are nformal $ro&ps mportant( (nformal groups are important because they can significantly affect the attitudes and performance of their members relative to organi$ation groups and objectives. Ans)er* p. +-+ +. Ho) !oes so/ al loaf n$ relate to $ro&p s 5e( Ho) /an mana$ers pre7ent t( 0ocial loafing occurs more often in large groups as members seem to assume that someone else will 7carry the load8. (t can be reduced by structuring group tasks so it is possible to identify individual contributions to the final result. Ans)er* p. +--. What are the a!7anta$es an! ! sa!7anta$es of ! 7erse $ro&ps( dvantages are an increase in the 'uality of outputs as more ideas and opinions are available. 3isadvantages are somewhat negative effects on members* interactions with each other and the decreased fre'uency of communication within the group and increased outside of it. Ans)er* p. +-1

9. Wh0 s t mportant to &n!erstan! the effe/ts of /onform t0 n a $ro&p( Conformity is the adherence to the group*s norms by individual members. (f the level of conformity is high and the group norms support the organi$ation*s goals, the group will have a positive effect. (f the norms do not support the goals of the organi$ation, it can have a very harmful effect. Ans)er* p. +91 1. Wh0 s t mportant to &n!erstan! the effe/ts of /ohes on n $ro&ps( !roup cohesion can have a number of positive effects on organi$ation goals such as increased 'uality and 'uantity of group interactions, strengthened adherence to group norms, increased effectiveness in reaching group goals, and augmented individual satisfaction with group membership. (t can also have a negative effect through counterproductive norms, stifling of new ideas contrary to established norms or values, and potential decrease in inter"group cooperation. Ans)er* p. +9+ 3. What are the fa/tors that nfl&en/e $ro&p format on( The factors that influence group formation are organi$ational goals, opportunities for interaction and sharing mutual knowledge, and psychological factors such as need for social interaction, support, and status. Ans)er* p. +9+ <. What are the sta$es of $ro&p e7ol&t on an! )hat o//&rs n ea/h sta$e( The stages of group evolution are <ormation, 5arly 3evelopment, Becoming a !roup, and /erforming as a Team. 3uring formation groups try to understand who is there and why, who will play which roles, and existing views and attitudes. 5arly development is when members learn what is expected of them, conflicts surface, and information is cautiously exchanged. Becoming a group entails the development of consensus about group issues, individual identity within the group, and its goals. s a Team, the group will be performing as a coherent entity. Ans)er* p. +99 16. Ho) /an /onfl /t affe/t $ro&p performan/e( Task or substantive conflict can affect groups positively because it focuses on differences in courses of action and issues facing the group. 1elationship conflict focuses on interpersonal conflict between group members and can be a distraction from dealing with group issues and tasks in a productive way. Ans)er* p. +1+ CHAPTER 1+ REVIEW QUESTIONS 1. @ a$ram the /omm&n /at ons mo!el an! la"el the fo&r a/t ons an! f 7e /omponents.

0ender 5ncodes message Chooses a medium 0ends the message

>+(05

1eceiver 1eceives message 3ecodes message #ay send feedback

The four actions are encoding, sending, receiving, and decoding. The five components are sender, message, medium, noise, and receiver. Ans)er* p. +<. .. Ho) !oes oral /omm&n /at on /ompare to )r tten /omm&n /at on( +ral communication is spoken. (t has the potential for being vivid, stimulating, flexible and commanding attention. (t can also be transitory and subject to interpretation. Written communication decreases the potential for misinterpretation and can be more precise. (t can be inflexible, easier to ignore, and precision can be lost in translation. Ans)er* p. +<2 2. Ho) !oes me! a r /hness affe/t the /ho /e of me! a n sen! n$ a messa$e( #edia richness affects the choice of media in sending a message because the richer it is, the more it facilitates shared meaning. Ans)er* p. +<+. @ fferent ate "et)een &p)ar!* !o)n)ar!* an! lateral /omm&n /at on an! $ 7e an e4ample of ea/h. 6pward communication is sent from lower organi$ation levels to higher, such as a re'uest for an increased budget. 3ownward communication is sent from higher to lower levels of the organi$ation, such as a policy on e'ual employment opportunity. =ateral communication occurs between essentially e'uivalent levels of an organi$ation such as a purchase order from the manufacturing group to purchasing. Ans)er* p. +<3 -. = st three messa$es )h /h sho&l! "e /omm&n /ate! formall0 an! three that sho&l! "e /omm&n /ate! nformall0. E4pla n 0o&r /ho /es. Three messages that should be communicated formally are new policies that comply with <ederal laws, changes in pay or promotion, and performance appraisals because they should not be ignored, should be retained for future reference, and must be harder to misinterpret. Three messages that can be sent informally would be information about an interest group get"together after work, the menu in the cafeteria, or information about reserved parking spaces as a reward. These messages are about transitory events, affect informal groups, or can be used to create positive incentives 'uickly. Ans)er* p. +<< 9. Wh0 s t mportant to &n!erstan! the /omm&n /at on net)orks n an or$an 5at on( The importance of communication networks to managers is that they provide significant and regular sources of information, both formal and informal, that would take much

longer if the links had to be re"established every time. They also provide opportunities for influencing others. Ans)er* p. -61 1. = st an! e4pla n the three t0pes of "arr ers to /omm&n /at on. The three types of barriers to communication are :. (nterpersonal, which can occur between individuals or groups because of selective perception individual differences, emotion, language or non"verbal cues4 D. +rgani$ational, which occur between individuals or groups within or outside of the organi$ation and can be caused by hierarchy or functional barriers4 E. Cultural, between individuals or groups in different organi$ational groups with different national cultures, from different organi$ational cultures, or diverse cultural backgrounds within an organi$ation. They are caused by language, highBlow context culture, stereotyping, ethnocentrism, and cultural distance. Ans)er* p. -62 3. Ho) !oes /omm&n /at on ! ffer "et)een h $h,/onte4t an! lo),/onte4t /&lt&res( Communication differs between high"context and low"context cultures in that high" context cultures will have more and greater adjustments in messages, the rank of the receiver will probably affect the message and the medium, nonverbal cues will be very important, and the medium may be as important as the message. =ow context cultures have fewer adjustments, rank is less important, and the message is more important than the medium. Ans)er* p. -6<. Ho) /an mana$ers o7er/ome /omm&n /at on "arr ers( #anagers overcome communication barriers by improving their listening and sending skills and by understanding the culture and communications systems within which they work. Ans)er* p. -63 16. @es/r "e ea/h of the sta$es n the ne$ot at n$ pro/ess an! e4pla n ho) ea/h /an "e affe/te! "0 /&lt&re. :. /lanning and preparation involves background research, planning of strategy and tactics, objectives and what can or cannot be conceded. Japanese managers are likely to spend more time than mericans on preparation. D. 1elationship building between parties is 7non"task time8 during which each side attempts to establish comfortable working relationships with the other. mericans tend to make this brief, but other cultures such as sia, the #iddle 5ast, and =atin merica take a lot longer. E. (nformation exchange is when each party attempts to learn the needs and demands of the other. 6.0. managers tend to be direct and hurry through this stage, while sians, rabic, and especially =atin merican cultures take a more indirect, drawn out, and thorough approach. F. /ersuasion attempts to modify the position of the other party and influence them to accept yours. merican managers tend to use assertive and straightforward efforts,

occasionally threats or warnings to force agreement. rabic managers may do so also, but are less hurried. sians are slower, more indirect, and will delay rather than threaten. =atin mericans use a mix of tactics, but also resort to delay when it is helpful. G. ConcessionB greement is where, when parties are close to agreement, compromises and concessions are made to allow each party to take away something of value. mericans, having started closer to their real positions, have less 7wiggle room8 than those from rabic and =atin merican countries. sians often employ normative appeals such as 7it is your obligation8 to get concessions. Ans)er* p. -11 CHAPTER 1REVIEW QUESTIONS 1. = st the ke0 a/t 7 t es n7ol7e! n HR#. The key activities involved in &1# are planning, job analysis, recruiting, selecting, sociali$ing and training, job design, performance appraisal, compensation, and development. Ans)er* p. -.1 .. Ho) )o&l! 0o& !es/r "e the strate$ / mportan/e of HR# n !e7elop n$ /ompet t 7e a!7anta$e( 0trategies cannot be implemented without human resources capable of carrying them out. What*s more, executives today are aware that the uni'ue capabilities of the people who work for them are hard to copy, one of the sources of competitive advantage that adds value for customers. Ans)er* p. -.1 2. What s the p&rpose of 'o" anal0s s( Job analysis is the determination of the scope and depth of jobs and the re'uisite skills, abilities, and knowledge that people need to perform their jobs successfully. The data and insights that come from job analysis are typically used to create a job description and job specification. Ans)er* p. -.< +. Class f0 the metho!s of re/r& tment l ste! nto nternal an! e4ternal a/t 7 t es. (nternal activities include job postings, performance appraisals, and internal referrals. 5xternal recruiting includes advertisements, employment agencies, school placement centers, and the (nternet. Ans)er* p. -.<,-2. -. Wh0 s t mportant for sele/t on te/hn 8&es to "e 7al !( valid selection techni'ue differentiates between those who would be more successful on the job and those who would be less successful. (t also provides legal defense in case of a challenge on the basis of discrimination. Ans)er* p. -22

9. What are the metho!s that /an "e &se! to sele/t the "est /an! !ates from a pool of appl /ants( ssessment centers that use a combination of testing, sampling, and interviews, work simulations, written tests, background and reference checks, and physical examinations. Ans)er* p. -22,-21. What s the ! fferen/e "et)een or entat on an! tra n n$( +rientation provides a broad view of the industry, the company, and its business activities and general information about working for the company such as policies, procedures, procedures, and fringe benefits. Ans)er* p. -29 3. Wh0 s performan/e appra sal mportant to an or$an 5at on( to ts emplo0ees( /erformance appraisal is important to an organi$ation because it gives managers the opportunity to evaluate employee performance against an established standard. (t provides employees with feedback about their level of performance, whether or not they are meeting the objectives set, and what they must do to meet a standard. Ans)er* p. -2< <. Ho) /an an or$an 5at on &se /ompensat on s0stems to mot 7ate emplo0ees( Compensation systems can be used to motivate employees through e'uitable pay structures that support and reward meeting organi$ation objectives. They include pay, incentive programs, and fringe benefits. Ans)er* p. -++,-+16. C 7e three e4amples of pro"lems that /an "e /reate! "0 ! 7ers t0 an! ho) 0o& )o&l! resol7e them. 5xamples of problems that can be created by diversity are communication problems and misunderstandings, mistrust, conflict and incompatible approaches to problem solving, lower group cohesiveness and greater subgroup formation based on elements of diversity. #anagers can overcome these by knowing their own levels of comfort and experience with those different from themselves by preparing themselves and their employees through training in conflict management4 listening skills, negotiation, and communication4 and providing support to minority employees, and by guiding behavior. Ans)er* p. --1 CHAPTER 19 REVIEW QUESTIONS 1. What s meant "0 /ontrol n or$an 5at ons an! )h0 s t mportant( Control involves the regulation of activities and behaviors in organi$ations to bring conformity to specifications or objectives. Ans)er* p. -93 .. Ho) are plann n$ an! /ontroll n$ l nke!(

/lanning sets an organi$ation*s goals and controlling determines whether they have been achieved. Controlling provides the feedback to determine whether the goal has been reached and why or why not. Ans)er* p. -9< 2. @ a$ram an! la"el the /ontrol pro/ess. """""""""""""""""""""""""""""""""""""""""""""""""" /= >>(>! """"""""" C+>T1+=""""""<553B CC"" C& >!50 +1! >(K(>!"""""" """""""""""""""""""""""""""""""""""""""""""""""""""" Ans)er* p. -16 +. @ef ne stan!ar!s an! e4pla n )h0 the0 are mportant to an or$an 5at on. 0tandards are performance targets that start at the top of the organi$ation and filter down through each level as appropriate for the responsibilities they have for carrying out the goals and objectives of the organi$ation. Ans)er* p. -16,-11 -. Who sho&l! set stan!ar!s( 0tandards should be set with the participation of those who will carry them out because they will be more committed to carrying them out and because they understand what will be appropriate. Ans)er* p. -11,-1. 9. E4pla n strate$ /* ta/t /al* an! operat onal /ontrols an! $ 7e an e4ample of ea/h. 0trategic controls determine whether the organi$ation is meeting its long"range objectives and its fit with the external environment. 0trategic controls are difficult because of the dynamic environment and broad nature of strategic goals, but an example would be 7being >umber :8 in a given industry. Control would be to determine if that has been achieved. Tactical controls include assessment and regulation of day to day functions of the major units of an organi$ation such as financial controls and budgets. +perational controls assess and regulate the specific activities and methods an organi$ation uses to produce goods and services. ssembly line inspection is an example of operational controls. Ans)er* p. -11 1. Ho) !oes the e4ternal en7 ronment affe/t strate$ / /ontrols( The external environment affects strategic controls because different industries have more or less turbulence, change occurs more or less rapidly depending on innovations in the overall environment, and because long"range goals are vague and shifting. Ans)er* p. -13 3. What s the ! fferen/e "et)een strate$ / an! "&!$etar0 /ontrols(

0trategic controls are those relating to the broad mission and vision of an organi$ation. They may be difficult to 'uantify. Budgetary controls are sometimes considered to be elements of a strategic system. &owever they are a significant tactical control because they cover a relatively limited time frame, focus exclusively on one type of objective, and usually cannot be used to compare a total organi$ation*s progress to its competitors. Ans)er* p. -32 <. E4pla n the ! fferen/e "et)een "&rea&/rat / /ontrols an! /lan /ontrols. @es/r "e a s t&at on n )h /h ea/h )o&l! "e &sef&l. Bureaucratic controls stress adherence to rules and regulations and are imposed on workers by others. They are useful when there is a strong reliance on legitimate authority and work is highly structured. Clan controls emphasi$e consensus and shared responsibility for meeting goals. Clan control is appropriate in small organi$ations where there are shared values understood by all. Ans)er* p. -39 16. Name the t0pe of operat onal /ontrol &se! n ea/h sta$e of the pro!&/t on pro/ess an! $ 7e an e4ample. /recontrols are used before the production process begins to monitor the 'uality, 'uantity, and other characteristics of inputs. Concurrent controls are used to evaluate the conversion process as it occurs, such as identifying a defective part as soon as it is made. /ostcontrols inspect completed products for 'uality and conformity to standards after they are completed. Ans)er* p. -3< CHAPTER 11 REVIEW QUESTIONS 1. What are the e4ternal for/es that /a&se /han$e ) th n an or$an 5at on( The external forces that cause change within an organi$ation are economic, technology developments, legalBpolitical developments, societal and demographic shifts, and competitors* actions. Ans)er* p. 961 .. What are the nternal for/es that /a&se or$an 5at onal /han$e( The internal forces that cause organi$ational change are managerial decisions and employee preferences and suggestions. Ans)er* p. 916 2. What are the s 4 nternal /omponents of an or$an 5at on that /an "e /han$e!( The six internal components of an organi$ation that can be changed are technology, shared values and culture, strategy, structure, systems, and staff. Ans)er* p. 911 +. Wh0 s t ! ff /&lt to /han$e an or$an 5at on>s /&lt&re(

(t is difficult to change an organi$ation*s culture because traditions and accepted ways of doing things are deeply embedded in an organi$ation. -alues, the underlying essence of the culture, are most difficult to change because they have evolved over time and are part of the basic fabric of the organi$ation. Ans)er* p. 91+ -. Is proa/t 7e or rea/t 7e /han$e "etter for the or$an 5at on( /roactive change is more effective because it can be planned further in advance, allows more control and time to adjust, and spreads the costs of change over a longer period. Ans)er* p. 919,911 9. What are the /ho /es that mana$ers fa/e n mplement n$ /han$e( The choices that managers face in planning change are9 timing, building support, communication, participation, and incentives. Considerations managers have in implementing change are choice of focus, choice of amount, choice of fre'uency, and choice of rate. Ans)er* p. 9.1 1. Wh0 !o emplo0ees res st /han$e an! ho) /an th s res stan/e "e o7er/ome( 5mployees resist change because it has potential threats and risks for those affected. 1esistance is caused by inertia, mistrust, lack of information, lack of capabilities, and anticipated conse'uences. 1esistance to change can be overcome by analy$ing the forces for and against it, participation in the plans for change by those affected, communication, facilitation and support, and coercion. Ans)er* p. 9.9 3. @es/r "e for/e f el! anal0s s. <orce field analysis uses the concept of e'uilibrium, a condition that occurs when the forces for change, the driving forces, are balanced by the forces opposing change, the restraining forces. Change will occur when the driving forces for change become greater than the restraining forces for inertia. Ans)er* p. 9.9,9.1 <. What !ata s nee!e! to e7al&ate /han$e( 3ata that is needed to evaluate change can be 'uantitative, such as changes in output, speed of response to customers, or accuracy of reports. (t compares outcomes to predetermined goals or standards. Nualitative measures such as attitudes are more difficult to measure, but can involve feedback to supervisors, surveys, and other systems for collecting ideas. Ans)er* p. 9.< 16. Name an! e4pla n three metho!s for mana$ n$ /han$e n or$an 5at ons. Three methods for managing change in organi$ations are organi$ational development, process redesign, and organi$ational learning. +rgani$ational development has an emphasis on planned, strategic, long"range efforts focusing on people and their interrelationships in organi$ations. /rocess redesign, or re"engineering, involves a

fundamental redesign in business processes to achieve ,intended. dramatic improvements. +rgani$ational learning is exhibited by an organi$ation that is skilled at creating, ac'uiring, and transferring knowledge and at changing its behavior to reflect new knowledge and insights. Ans)er* p. 926,921