TEST BANK FOR MANAGEMENT 5TH ASIA PACIFIC EDITION SCHERMERHORN

Testbank to accompany Management 5th Edition by Schermerhorn et al. Prepared by Kim Rutter, University of Canterbury © John Wiley & Sons Australia, Ltd Chapter 3 Environment and diversity Multiple choice questions 1. Contemporary managers are learning many things because of the impact of the 21st century environment. Which of the following is NOT one of the things that contemporary managers are learning to do? a. Contemporary managers are learning how to succeed in a world of intense competition. b. Contemporary managers are learning how to succeed in an environment of continued globalisation of markets and business activities. c. Contemporary managers are learning how to succeed in a world of rapid technological change. *d. Contemporary managers are learning to operate in a world that devalues information, quality and speed. e. Contemporary managers are learning to respond to unrelenting new demands. General Feedback: Page 59. Applied. Learning objective 1. Managers today are learning to operate in a world that places a premium on information, technology use, quality, customer service and speed. They are learning how to succeed in a world of intense competition, continued globalisation of markets and business activities, and rapid technological change. 2. An organisation can create a __________ by utilising a __________ that clearly sets it apart from its competitors and gives it an advantage over them in the marketplace. *a. competitive advantage; core competency b. core competency; competitive advantage c. competitive advantage; specific environment d. general environment; specific environment e. core advantage; competitive competency General Feedback: Page 60. Factual. Learning objective 1. 3. An organisation can achieve a competitive advantage through which of the following ways? a. Pricing and customer service b. Cost efficiency and quality c. Customer service and quality *d. All of the options listed e. None of the options listed General Feedback: Page 60. Factual. Learning objective 1.Competitive advantage refers to the use of a core competency that clearly sets an organisation apart from its competitors and gives it an advantage over them in the marketplace. 4. The key result of achieving a competitive advantage is: a. an ability to sidestep government regulations. *b. an ability to consistently do something of high value that one's competitors cannot replicate or do as well. c. an ability to drive the competition out of business and to make extraordinarily high profits. d. an ability to establish a monopolistic market position. e. an ability to dictate consumer needs and preferences. General Feedback: Page 60. Factual. Learning objective 1. Regardless of how the advantage is achieved, the key result is the same - an ability to consistently do something of high value that your competitors cannot replicate quickly or do as well. 5. __________ is especially important in the demanding global economy because nowhere in the world can managers rest on past successes and ignore what others are doing, either at home or abroad. a. Core advantage b. Market advantage c. Strategic advantage *d. Competitive advantage e. Management advantage General Feedback: Page 60. Applied. Learning objective 1. Competitive advantage in the demanding global economy can be achieved only by continuously scanning the environment for opportunities, and taking effective action based on what is learned. 6. The __________ consists of all the background conditions in the external environment of an organisation that form a general context for managerial decision making. a. task environment *b. general environment c. specific environment d. management environment e. organisational environment General Feedback: Page 60. Factual. Learning objective 1. The general environment comprises economic, sociocultural, political-legal, technological and natural environment conditions. 7. General environment conditions exclude which one of the following categories? a. Technological conditions *b. Human relations conditions c. Economic conditions d. Legal-political conditions e. Natural environment conditions General Feedback: Page 60. Factual. Learning objective 1. The general environment comprises economic, sociocultural, political-legal, technological and natural environment conditions. 8. Which of the following would NOT be a condition in the general environment? a. Economic conditions b. Sociocultural conditions c. Political-legal conditions *d. Extent and nature of competition e. Technological conditions General Feedback: Page 60. Factual. Learning objective 1. The general environment comprises economic, sociocultural, political-legal, technological and natural environment conditions. 9. Economic conditions in the general environment include: a. philosophy and objectives of political parties, as well as laws and governmental regulations. *b. inflation, income levels, gross domestic product and unemployment. c. social values regarding human rights and the natural environment, trends in education and demographic patterns. d. development and availability of technology in the environment, including scientific advancements. e. nature and conditions of the physical environment. General Feedback: Page 62. Factual. Learning objective 1. Economic conditions include the general state of the economy in terms of inflation, interest rates, income levels, gross domestic product and unemployment and related indicators of economic health. 10. Political-legal conditions in the general environment include: *a. philosophy and objectives of political parties, as well as laws and governmental regulations. b. inflation, income levels, gross domestic product and unemployment. c. social values regarding human rights and the natural environment, trends in education and demographic patterns. d. development and availability of technology in the environment, including scientific advancements. e. nature and conditions of the physical environment. General Feedback: Page 62. Factual. Learning objective 1. Political-legal conditions include laws and government regulations and the general state of the prevailing philosophy and objectives of the political party or parties running the government. 11. Technological conditions in the general environment include: a. philosophy and objectives of political parties, as well as laws and governmental regulations. b. inflation, income levels, gross domestic product and unemployment. c. social values regarding human rights and the natural environment, trends in education and demographic patterns. *d. development and availability of technology in the environment, including scientific advancements. e. nature and conditions of the physical environment. General Feedback: Page 62. Factual. Learning objective 1. Technological conditions This includes the general state of the development and availability of technology, including scientific advancements. 12. Natural environment conditions in the general environment include: a. philosophy and objectives of political parties, as well as laws and governmental regulations. b. inflation, income levels, gross domestic product, and unemployment. c. social values regarding human rights and the natural environment, trends in education, and demographic patterns. d. development and availability of technology in the environment, including scientific advancements. *e. general state of nature and conditions of the natural environment. General Feedback: Page 62. Factual. Learning objective 1. Natural environment conditions include the general state of nature and the conditions of the natural environment, including levels of public concern expressed through environmentalism. 13. The specific environment can be described in terms of which of the following? a. Stakeholders b. Persons, groups or institutions that are affected by the organisation's performance c. The task environment *d. All of the options listed e. None of the options listed General Feedback: Page 63. Applied. Learning objective 1. The specific environment includes the people and groups with whom an organisation interacts. 14. Persons, groups, and institutions that are affected in some way by the organisation's performance are referred to as: a. agencies *b. stakeholders c. target populations d. All of the options listed e. None of the options listed General Feedback: Page 63. Factual. Learning objective 1. Stakeholders are the individuals, groups and institutions directly affected by an organisation's performance. 15. All of the following are important stakeholder elements in the task environment of most organisations EXCEPT: a. customers. b. suppliers. *c. supervisors. d. competitors. e. regulators. General Feedback: Page 64. Factual. Learning objective 1. Important stakeholders common to the specific environment of most organisations include customers, suppliers, competitors, and regulators. 16. Which of the following would NOT be an important stakeholder element in the specific environment of most organisations? a. Customers b. Suppliers c. Competitors d. Regulators *e. Employees General Feedback: Page 64. Factual. Learning objective 1. Important stakeholders common to the specific environment of most organisations include customers, suppliers, competitors, and regulators. 17. __________ are specific consumer or client groups, individuals and organisations that purchase the organisation's goods and/or use its services. *a. Customers b. Suppliers c. Employees d. Competitors e. Regulators General Feedback: Page 64. Factual. Learning objective 1. Customers are the specific consumer or client groups, individuals and organisations that purchase the organisation's goods and/or use its services. 18. __________ are specific providers of the human, information and financial resources and raw materials needed by the organisation to operate. a. Customers *b. Suppliers c. Employees d. Competitors e. Regulators General Feedback: Page 64. Factual. Learning objective 1. Suppliers are the specific providers of the human, information and financial resources and raw materials needed by the organisation to operate. 19. __________ are specific government agencies and representatives, at the local, state, and national levels, that enforce laws and regulations affecting the organisation's operations. a. Customers b. Suppliers c. Employees d. Competitors *e. Regulators General Feedback: Page 64. Factual. Learning objective 1. Regulators - specific government agencies and representatives, at the local, state and national levels, that enforce laws and regulations affecting the organisation's operations. 20. __________ means that there is a lack of complete information regarding what developments will occur in the external environment. a. Environmental complexity b. Environmental dynamism c. Environmental change *d. Environmental uncertainty e. Environmental information General Feedback: Page 64. Factual. Learning objective 1. Environmental uncertainty is a lack of complete information about the environment. 21. All of the following are true statements regarding environmental uncertainty EXCEPT: a. there is a lack of complete information concerning what developments will occur in the external environment. *b. most organisations encounter relatively little uncertainty in their environments. c. complexity refers to the number of different factors that exist in the environment. d. the rate of change in factors in the environment is one component of environmental uncertainty. e. environmental uncertainty makes it difficult to understand potential implications for the organisation. General Feedback: Pages 64. Factual. Learning objective 1. Environmental uncertainty means that there is a lack of complete information regarding what developments will occur in the external environment. 22. The greater the level of environmental uncertainty, the: a. greater the level of environmental complexity and the rate of change in the environment. b. more attention that management must direct toward the external environment. c. greater the need for flexibility and adaptability in organisational designs and work practices. *d. all of the options listed. e. none of the options listed. General Feedback: Page 64. Applied. Learning objective 1. In general, the greater the environmental uncertainty, the more attention that management in an organisation must direct towards the external environment. It has to be continually studied and monitored to spot emerging trends. Also, the greater the environmental uncertainty, the more need there is for flexibility and adaptability in organisational designs and work practices. 23. Which of the following types of organisations are becoming more flexible in an attempt to better deal with high amounts of environmental uncertainty? a. Businesses within those industries, which have been deregulated and must meet new competitive pressures b. Companies that were previously state-owned but now are privatised, and are forced to compete under open market conditions c. Telecommunications and airline companies *d. All of the options listed e. None of the options listed General Feedback: Page 64. Applied. Learning objective 1. Throughout this book you will find many examples of how organisations are becoming more flexible in the attempt to better deal with the high degree of environmental uncertainty that so often prevails in today's dynamic times. 24. The internal culture of an organisation has the potential to: a. shape attitudes and reinforce common beliefs. b. direct behaviour. c. establish performance expectations and the motivation to fulfil them. *d. all of the options listed. e. none of the options listed. General Feedback: Page 66. Factual. Learning objective 2. The internal culture has the potential to shape attitudes, reinforce common beliefs, direct behaviour and establish performance expectations and the motivation to fulfil them. 25. Jimmy is new to the ZYX Organisation. He asks his supervisor why production standards are not modified to reflect market competition. His supervisor says, 'That is the way we do things around here.' The supervisor's comment is an example of: a. the supervisor's motto. *b. the organisational culture. c. the corporate mission. d. a supervisor's principle. e. an outdated production manual. General Feedback: Page 66. Applied. Learning objective 2. Organisational culture is the system of shared beliefs and values that develops within an organisation and guides the behaviour of its members. 26. The best organisations that have strong cultures will likely do all the following EXCEPT: a. show respect for members. b. encourage adaptability. c. encourage continuous improvement. *d. discourage innovation. e. promote teamwork. General Feedback: Page 66. Factual. Learning objective 2. Strong cultures - ones that are clear and well defined and widely shared among members - discourage dysfunctional work behaviours and encourage positive ones. 27. Observable culture is seen through which of the following elements of organisational life? a. Strategy, performance, structure and worker involvement *b. Stories, symbols, heroes and rites and rituals c. Stories, relevance, pervasiveness and strength d. Symbols and rites e. Core culture and corporate culture General Feedback: Page 67. Factual. Learning objective 2. The observable culture is visible - it is what one sees and hears when walking around an organisation as a visitor, a customer or an employee. 28. While walking through the offices during an interview with the marketing director, John notices the way people dress, the arrangement of their offices, and how the employees treat each other when passing in the hallways. This information about the company reflects its: a. symbols. b. core culture. *c. observable culture. d. environmental culture. e. displayed culture. General Feedback: Page 67. Applied. Learning objective 2. The observable culture is visible - it is what one sees and hears when walking around an organisation as a visitor, a customer or an employee. 29. An investment firm is reviewing the performance of a small corporation, noting its track record in product innovation, the quality of work life of employees, and the organisation's degree of involvement in environmental concerns. The investment firm seems to be interested in gathering information about which aspect of the company's culture? a. Profits *b. Core culture c. Observable culture d. Environmental concerns e. Displayed corporate culture General Feedback: Page 67. Applied. Learning objective 2. The core culture determines why things are the way they are. It consists of core values or underlying assumptions and beliefs that influence behaviour and actually give rise to the aspects of observable culture just described. 30. Highly successful companies typically emphasise which of the following core values? a. Strategy, performance, structure and worker involvement. b. Stories, symbols, heroes and rites and rituals. *c. Performance excellence, innovation, social responsibility, integrity, worker involvement, customer service and teamwork. d. Symbols, stories and strategies. e. Observable behaviour, management strategy, mission statement and strategic objectives. General Feedback: Page 67. Factual. Learning objective 2. Highly successful companies typically emphasise the values of performance excellence, innovation, social responsibility, integrity, worker involvement, customer service and teamwork. 31. The underlying beliefs that influence the behaviour of organisation members and actually give rise to the different aspects of observable culture can be described as the: a. observable culture. b. human values. *c. core values. d. rites of passage. e. behavioural guidelines. General Feedback: Page 67. Factual. Learning objective 2. Core values are underlying beliefs shared by members of the organisation that influence their behaviour. 32. Good __________ highlight the observable culture by repeatedly telling key stories and frequently using rites and rituals to glorify the performance of the organisation and its members. a. team leaders b. chief executive officers c. managers *d. symbolic leaders e. chief operating officers General Feedback: Page 68. Factual. Learning objective 2. A symbolic leader uses symbols to establish and maintain a desired organisational culture. 33. Leaders at any level of the organisation should promote core values that: a. support key performance objectives. b. are known by all members of the organisation or group. c. are accepted by everyone involved. *d. all of the options listed e. none of the options listed General Feedback: Page 68. Factual. Learning objective 2. At any level, these values should meet the test of three criteria: (1) relevance - core values should support key performance objectives; (2) pervasiveness - core values should be known by all members of the organisation or group; and (3) strength - core values should be accepted by everyone involved. 34. Relevance, pervasiveness, and strength are the three criteria for evaluating the: *a. core values of an organisation's culture. b. desired outcomes of the organisation's external environment. c. goals for managerial excellence. d. qualities for the organisation's strategic objectives. e. rules of conduct in most organisations. General Feedback: Page 68. Factual. Learning objective 2. At any level, these values should meet the test of three criteria: (1) relevance - core values should support key performance objectives; (2) pervasiveness - core values should be known by all members of the organisation or group; and (3) strength - core values should be accepted by everyone involved. 35. A __________ is someone who uses symbols well to establish and maintain a desired organisational culture. a. communications specialist b. business executive c. cultural manager *d. symbolic leader e. organisational leader General Feedback: Page 68. Factual. Learning objective 2. A symbolic leader uses symbols to establish and maintain a desired organisational culture. 36. Newly hired workers at Disney World are counselled to always think of themselves as more than employees; they are key 'members of the cast'. They are told that Disney is not just any business, but an 'entertainment' business. This is an example of Disney World's use of: a. language barriers. b. disciplinary procedures. *c. language metaphors. d. company goals. e. hiring policy. General Feedback: Page 68. Applied. Learning objective 2. Language metaphors use positive examples from another context. 37. Individuals in an organisation who depend on the results of others' work in order to do their own jobs well are called: a. jobbers. *b. internal customers. c. external customers. d. quality experts. e. dependent employees. General Feedback: Page 69. Factual. Learning objective 3. Internal customers are found within the organisation. They are the individuals and groups who use or otherwise depend on the results of others' work in order to do their own jobs well. 38. Gloria assembles circuit boards in a computer manufacturing plant. She gets the chips for the boards from David, assembles the boards, and then forwards them to Judy, who puts them into the finished components. This example illustrates the concept of: a. integrated manufacturing processes. b. efficient task assignments. *c. internal customers, who use the results of others' work to do their job. d. total quality management and shared responsibility. e. Deming's path to quality. General Feedback: Page 69. Applied. Learning objective 3. Internal customers are found within the organisation. They are the individuals and groups who use or otherwise depend on the results of others' work in order to do their own jobs well. 39. Which one of the following statements does NOT accurately describe a practical implication of the concept of internal customers? a. Any job or function in the organisation represents an internal customer. b. Any job or function is both a customer and a supplier. *c. Internal customers refer only to jobs that are directly involved with the manufacture of a product. d. Customers have the right to expect high-quality and on-time inputs from earlier points in the workflow. e. Suppliers have the responsibility to deliver high-quality and on-time inputs to the next point in the workflow. General Feedback: Page 69. Applied. Learning objective 3. Internal customers are found within the organisation. They are the individuals and groups who use or otherwise depend on the results of others' work in order to do their own jobs well. 40. __________ and __________ are two important lessons that have been learned by contemporary successful businesses. a. Always protect your stockholders; always treat your customers right b. Always protect your reputation for shrewd financial management; always treat your employees right c. Always protect your profits; always treat your customers right d. Always protect your reputation for quality products/services; always treat your shareholders right *e. Always protect your reputation for quality products/services; always treat your customers right General Feedback: Page 70. Applied. Learning objective 3. Two important lessons of successful businesses today are: (1) always protect your reputation for quality products - it is hard to get and easy to lose, and (2) always treat your customers right - they, too, are hard to get and easy to lose. 41. Harold, a dot-com entrepreneur, made the following statement in a meeting with his key managers: 'We need to focus our attention on determining what our customers want, where they want it, and when they want it.' Based on this statement, Harold is most likely trying to build: a. a framework for management analysis. *b. a customer-driven organisation. c. a rapidly growing dot-com company. d. an information technology driven business. e. a flexible organisation. General Feedback: Page 69. Applied. Learning objective 3. Customers want three things in the goods and services they buy - high quality, low cost and on-time delivery. 42. Which of the following operations objectives should be used to guide value-added efforts in developing and maintaining a customer-driven organisation? *a. High quality, low costs and on-time delivery b. High quality, motivated employees and low inventory carrying costs c. High quality, low costs and low scrap rates d. High quantity, low costs and high profit margins e. High quality, minimal cycle time and efficient procedures General Feedback: Page 69. Factual. Learning objective 3. Customers want three things in the goods and services they buy - high quality, low cost and on-time delivery. 43. Since customer service can be an important source of competitive advantage, progressive managers: a. work hard to establish and maintain high standards of customer service. b. provide every customer with goods and services that are high in quality and low in cost. c. meet every customer's needs and require them to wait, at most, only a short time. *d. all of the options listed. e. none of the options listed. General Feedback: Page 69. Factual. Learning objective 3. Progressive managers understand this concept and work hard to establish and maintain high standards of customer service. They try to provide every customer with goods and services that are high in quality and low in cost, meet their needs and require only short waiting times. 44. Establishing and maintaining effective customer service can be an important source of: a. sales management. *b. competitive advantage. c. strategic marketing. d. public relations. e. strategic decision-making. General Feedback: Page 70. Factual. Learning objective 3. The use of CRM in pursuit of competitive advantage is rapidly evolving with the support of information technology that allows organisations to maintain intense communication with customers as well as to gather and use data regarding customers' needs and desires. 45. The use of __________ in the pursuit of competitive advantage is rapidly evolving with the support of information technology that allows organisations to maintain intense communication with customers as well as to gather and utilise data regarding the customers' needs and preferences. *a. customer relationship management b. internal customer management c. value chain management d. total quality management e. supply chain management General Feedback: Page 70. Factual. Learning objective 3. The use of CRM in pursuit of competitive advantage is rapidly evolving with the support of information technology that allows organisations to maintain intense communication with customers as well as to gather and use data regarding customers' needs and desires. 46. Achieving efficiency in all aspects of the __________ while ensuring the necessary flow and on-time availability of quality resources for customer-driven organisations is the fundamental goal of __________. a. value chain; value chain management b. quality chain; quality chain management *c. supply chain; supply chain management d. customer chain; customer chain management e. production chain; production chain management General Feedback: Page 70. Factual. Learning objective 3. The concept of supply chain management involves strategic management of all operations relating an organisation to the suppliers of its resources, including purchasing, manufacturing, transportation and distribution. 47. __________ involves strategic management of all operations relating an organisation to the suppliers of its resources. a. Value chain management b. Internal customer management c. Customer relationship management d. Total quality management *e. Supply chain management General Feedback: Page 70. Factual. Learning objective 3. The concept of supply chain management involves strategic management of all operations relating an organisation to the suppliers of its resources, including purchasing, manufacturing, transportation and distribution. 48. Organisations that want to compete in the world marketplace as 'world-class companies' can gain a competitive advantage by having their operations meet: a. consumer protection standards. b. international Q standards. *c. ISO standards. d. AAA standards. e. manufacturing supply standards. General Feedback: Page 71. Factual. Learning objective 4. The ISO certification standards set by the International Organization for Standardization in Geneva, Switzerland, have been adopted by many countries of the world as quality benchmarks. 49. To receive ISO 9000 certification, companies must __________ and __________ a. undergo extensive managerial training; be approved by the Management Development Institute. b. receive governmental approval to apply for the certification exam; have at least 90% of the employees pass the certification exam. *c. refine and upgrade quality in all operations; undergo a rigorous assessment by outside auditors. d. apply for membership in the International Society for Operations (ISO); receive approval from the ISO membership committee. e. increase sales for three years in a row; decrease customer complaints in each year. General Feedback: Page 71. Factual. Learning objective 4. To gain certification in this family of standards, they must refine and upgrade quality in all operations and then undergo a rigorous assessment by outside auditors to determine whether they meet ISO requirements. 50. Which of the following characteristics does NOT accurately describe the process of total quality management? a. Making quality principles a part of the organisation's strategic objectives b. Applying quality principles to all aspects of operations c. Committing the organisation to continuous quality improvement d. Striving to meet customers' needs by doing things right the first time *e. Committing the organisation to the use of self-managing work teams General Feedback: Page 71. Factual. Learning objective 4. Total quality management (TQM) is managing with commitment to continuous improvement, product quality and customer satisfaction. 51. Philip Crosby has developed what he calls the 'four absolutes' of management for total quality control. Which of the following is NOT one of Crosby's 'four absolutes' of management? a. Quality means conformance to standards. b. Quality comes from defect prevention, not defect correction. *c. Quality comes from multiple defect inspections. d. Quality as a performance standard must mean defect-free work. e. Quality saves money. General Feedback: Page 71. Factual. Learning objective 4. Philip Crosby offered these 'four absolutes' of management for total quality control: (1) quality means conformance to standards; (2) quality comes from defect prevention, not defect correction; (3) quality as a performance standard must mean defect-free work; and (4) quality saves money. 52. According to W. Edwards Deming, a quality problem could be attributed to which of the following causes? a. The cause of a quality problem may be an employee. b. The cause of a quality problem may be a machine. c. The cause of a quality problem may be a problem with the production and operations systems itself. *d. All of the options listed are potential causes of quality problems. e. None of the options listed are potential causes of quality problems. General Feedback: Page 72. Factual. Learning objective 4. Deming's '14 points to quality' emphasise constant innovation, use of statistical methods and commitment to training in the fundamentals of quality assurance. 53. W. Edwards Deming's comprehensive, rigorous, and learning-based approach to quality emphasises: *a. constant innovation, use of statistical methods and a continuous commitment to up-to-date training. b. constant correction of defects and termination of employees responsible for the defects. c. use of statistical methods to fix blame for low quality. d. use of up-to-date technology to compensate for poorly trained workers. e. continuous commitment to maximising corporate profits. General Feedback: Page 72. Factual. Learning objective 4. Deming's '14 points to quality' emphasise constant innovation, use of statistical methods and commitment to training in the fundamentals of quality assurance. 54. Employee involvement and participation in the search for quality solutions is an important part of any: a. analysis of the organisation's environment. b. bureaucratic organisation. *c. quality management process. d. modern human resource management program e. supervisor's responsibility for operational efficiency General Feedback: Page 72. Factual. Learning objective 4. Employee participation is crucial for the success of a TQM program. 55. The basic philosophy of __________ is that organisation members should never be satisfied with current performance. a. performance management *b. continuous improvement c. performance appraisal d. supply chain analysis e. human resources management General Feedback: Page 72. Factual. Learning objective 4. Continuous improvement involves always searching for new ways to improve operations quality and performance. 56. An important aspect of __________ is the belief that organisation members should find ways to serve customers' needs more quickly. a. performance management b. performance appraisal c. supply chain analysis d. human resources management *e. continuous improvement General Feedback: Page 72. Factual. Learning objective 4. Continuous improvement involves always searching for new ways to improve operations quality and performance. 57. The main objective of using a(n) __________ is to have the members assume responsibility for quality and to apply everyone's full creative potential in achieving it. a. employee relations team *b. quality circle c. focus group d. product development team e. research and design department General Feedback: Page 72. Factual. Learning objective 4. A quality circle is a group of employees who periodically meet to discuss ways of improving work quality. 58. A(n) __________ is a group of employees who meet regularly to discuss ways of improving the quality of their products or services. a. employee relations team b. focus group c. product development team d. research and design department *e. quality circle General Feedback: Page 72. Factual. Learning objective 4. A quality circle is a group of employees who periodically meet to discuss ways of improving work quality. 59. Cost savings from improved quality and greater customer satisfaction as well as improved worker morale and commitment are among the benefits that can be provided by a: a. human resources department. b. first-line supervisor. *c. quality circle. d. focus group. e. product development team. General Feedback: Page 72. Factual. Learning objective 4. Such worker empowerment can result in cost savings from improved quality and greater customer satisfaction. It can also improve morale and commitment. 60. Information technology can be used to improve quality management in all of the following ways EXCEPT: a. for benchmarking to stay abreast of best practices elsewhere. *b. to improve relationships with governmental regulatory agencies. c. to improve relationships with customers. d. to streamline efficiencies in the supply chain. e. to streamline efficiencies in internal operations. General Feedback: Page 73. Applied. Learning objective 4. 61. Which one of the following characteristics does NOT accurately describe the role that technology plays in the quality aspects of operations? a. Lean production b. Flexible manufacturing c. Agile manufacturing *d. Boutique engineering e. Mass customisation General Feedback: Page 73. Factual. Learning objective 4. New technologies are changing the nature of manufacturing and improving both quality and efficiency of operations. 62. __________ uses new technologies to streamline systems and allow work to be performed with fewer workers and smaller inventories. a. Flexible manufacturing b. Mass customisation *c. Lean production d. Agile manufacturing e. Customised design General Feedback: Page 73. Factual. Learning objective 4. Lean production uses new technologies to streamline systems and allow work to be performed with fewer workers and smaller inventories. 63. Providing individualised products quickly and with the production efficiencies once only associated with the mass production of uniform products can be accomplished by using techniques such as __________ and __________. a. lean production; individualised marketing b. flexible manufacturing; supply chain customisation *c. agile manufacturing; mass customisation d. quick process design; mass distribution management e. None of the options listed answers are correct. General Feedback: Page 73. Factual. Learning objective 4. Through such techniques as agile manufacturing and mass customisation, organisations are able to make individualised products quickly and with production efficiencies once only associated with the mass production of uniform products. 64. Modern production systems utilise __________ to better integrate the various aspects of manufacturing as well as to permit modifications to be made quickly and in a cost-efficient fashion. a. decision support systems b. integrative brainstorming sessions *c. computer-based technology d. quality circles e. strategic management General Feedback: Page 73. Factual. Learning objective 4. All such systems use computer-based technologies to better integrate the various aspects of manufacturing with customer preferences. 65. Progressive manufacturers that create a design that lowers production costs and improves quality in all stages of production are using a practice known as: a. benchmarking. b. continuous improvement. *c. design for manufacturing. d. operations engineering. e. design for disassembly. General Feedback: Page 73. Factual. Learning objective 4. Progressive manufacturers now emphasise design for manufacturing. This means that products are styled to lower production costs and smooth the way towards high-quality results in all aspects of the manufacturing processes. 66. Mike's work focuses on making a difference in how things are produced and at what level of cost and quality. His job is concerned with: a. continuous improvement. b. ISO 9000 certification. c. Crosby's 'four absolutes' of management. d. the Deming's '14 Points to Quality'. *e. developing a 'good' product design. General Feedback: Page 73. Applied. Learning objective 4. A 'good' design has eye appeal to the customer and is easy to manufacture with productivity. 67. A manufacturing approach that designs products with attention to how their component parts will be used when the product life ends is called: a. benchmarking. b. continuous improvement. c. design for engineering. d. product engineering. *e. design for disassembly. General Feedback: Page 73. Factual. Learning objective 4. A manufacturing approach that shows respect for the natural environment is design for disassembly. 68. Which of the following statements does NOT accurately describe an attribute or characteristic of diversity? *a. Race and gender are the only diversity dimensions that are relevant to the workplace. b. Diversity includes everyone, including white males. c. Diversity is a potential source of competitive advantage. d. The way people are treated at work reflects the organisation's culture. e. Doing the right things in organisational leadership can enable the company to gain competitive advantage through diversity. General Feedback: Page 74. Factual. Learning objective 5. Diversity describes race, gender, age and other individual differences. 69. Organisations that display characteristics such as pluralism and the absence of prejudice and discrimination are examples of: *a. multicultural organisations. b. pluralistic organisations. c. structurally designed organisations. d. conflict resolution companies. e. technologically advanced organisations. General Feedback: Page 74. Factual. Learning objective 5. Multiculturalism involves pluralism and respect for diversity. 70. __________ refers to pluralism and the respect for diversity in the workplace. a. Cultural diversity b. Cultural management *c. Multiculturalism d. A strong culture e. An ethical culture General Feedback: Page 74. Factual. Learning objective 5. Multiculturalism involves pluralism and respect for diversity. 71. __________ display characteristics such as structural integration, informal network integration, and minimum intergroup conflict. a. Pluralistic organisations b. Structurally designed organisations c. Conflict resolution companies. *d. Multicultural organisations e. Technologically advanced organisations General Feedback: Page 74. Factual. Learning objective 5. The model in this regard is the truly multicultural organisation with these characteristics: pluralism; structural integration; informal network integration; absence of prejudice and discrimination; and minimum intergroup conflict. 72. Denise is applying for a position with a medium-sized, but rapidly growing insurance company. She notices that there are several senior citizens and female managers of different racial backgrounds. They all seem to be very supportive of the other workers. Denise surmises that this company must be: a. a dysfunctional place to work b. a good organisation for women c. a minority-owned organisation *d. a multicultural organisation e. an ethically sound organisation General Feedback: Page 74. Applied. Learning objective 5. A multicultural organisation is based on pluralism and operates with respect for diversity. 73. Which of the following is NOT a subculture that can be found in an organisation? a. Generational subcultures b. Ethnic subcultures *c. Educational subcultures d. Racial subcultures e. Gender subcultures General Feedback: Page 74. Factual. Learning objective 5. Subcultures are common to groups of people with similar values and beliefs based on shared work responsibilities and personal characteristics. 74. Which of the following statements provides an accurate description about subcultures? a. Functional subcultures are composed of 'salaried professionals' such as lawyers, scientists, engineers and accountants. b. Occupational subcultures refer to people who develop strong identities with their work groups and specific areas of task responsibilities. c. Ethnic subcultures reflect gaps that exist between people who grew up and are growing up during different periods of history, and whose values have thus evolved under different influences. *d. Gender subcultures reflect differences in the values and beliefs of women and men. e. Functional subcultures consist of different ethnic and racial groups that work well together. General Feedback: Page 74. Applied. Learning objective 5. Subcultures are common to groups of people with similar values and beliefs based on shared work responsibilities and personal characteristics. 75. One of the following statements does NOT correctly describe the challenges faced by minorities. Which statement is the incorrect statement? a. Differences are often distributed unequally across organisational levels or among work functions. b. Minority members face special economic and work challenges, and these challenges are not always highly visible. *c. In Australia and New Zealand, disabled workers have benefited as much as other groups have from the economic growth of the 1990s. d. Even though organisations are changing, most senior executives in large organisations are older, white and male. e. More workforce diversity is likely to exist at lower and middle levels of most organisations than at the top. General Feedback: Page 76. Applied. Learning objective 5. Consider disability discrimination. This type of discrimination occurs when a person is treated unfairly or badly compared with others because they have an impairment or disability. 76. The daily work challenges that can be faced by minority subcultures in organisations include all of the following EXCEPT: a. misunderstanding. b. lack of sensitivity. c. sexual harassment. *d. clear advancement paths. e. pay discrimination. General Feedback: Page 76. Applied. Learning objective 5. The daily work challenges faced by minority cultures or populations in organisations can range from having to deal with misunderstandings and lack of sensitivity on the one hand to suffering harassment and discrimination, active or subtle, on the other. 77. The __________ is a hidden barrier that limits the advancement of minorities in some organisations. a. minority promotion policy b. affirmative action procedure c. diversity restraint d. supply chain *e. glass ceiling General Feedback: Page 76. Factual. Learning objective 5. Glass ceilings limit advancement of women and minority groups. 78. In addressing diversity issues, organisational leaders should realise that __________ want respect for their talents and a work setting that allows them to achieve their full potential. a. artists b. musicians *c. minority workers d. all of the options listed e. none of the options listed General Feedback: Page 78. Applied. Learning objective 5. There is no doubt today what minority-group workers want. They want the same thing everyone wants. They want respect for their talents and a work setting that allows them to achieve their full potential. 79. As the newly appointed manager of one of the major divisions of a large company, Barbara stated that one of her objectives was to create a workplace environment that allows all kinds of people to reach their full potential in the pursuit of the division's objectives. Barbara's statement indicates that she is committed to: a. impressing the company's top executives. b. management by objectives. c. managing the natural environment. *d. managing diversity. e. human resource management. General Feedback: Page 78. Applied. Learning objective 5. Managing diversity is building an inclusive work environment that allows everyone to reach their full potential. 80. __________ is a leadership approach to diversity in which leadership commits the organisation to hiring and advancing minority groups and women. *a. Affirmative action b. Subcultural management c. Human resource management d. Valuing diversity e. Managing diversity General Feedback: Page 79. Factual. Learning objective 5. Affirmative action commits the organisation to hiring and advancing minority groups and women. 81. __________ is a leadership approach to diversity in which leadership commits the organisation to education and training program designed to help people better understand and respect individual differences. a. Affirmative action b. Personality education c. Human resource training *d. Valuing diversity e. Managing diversity General Feedback: Page 79. Factual. Learning objective 5. Valuing diversity is when leadership commits the organisation to education and training programs designed to help people better understand and respect individual differences. 82. __________ is a leadership approach to diversity in which leadership commits to changing the organisational culture to empower and include all people. a. Cultural change management b. Organisation development c. Valuing diversity d. Affirmative action *e. Managing diversity General Feedback: Page 79. Factual. Learning objective 5. Managing diversity is when leadership commits to changing the organisational culture to empower and include all people. 83. Which of the following statements about a diverse workforce is NOT true? a. A diverse workforce offers a rich pool of talents, ideas and viewpoints that are useful for solving the complex problems of highly competitive and often-uncertain environments. *b. A diverse workforce presents little management challenge in addressing various human resources issues. c. A diverse workforce is best aligned with the needs and expectations of a diverse customer base. d. A diverse workforce makes good business sense in all contexts of organisational action. e. A diverse workforce helps an organisation to better understand and serve the needs of the global marketplace. General Feedback: Page 79. Applied. Learning objective 5. A diverse workforce offers a rich pool of talents, ideas and viewpoints useful for solving the complex problems of highly competitive and often uncertain environments. 84. Which of the following statements does NOT accurately describe a characteristic of effective diversity leadership? a. It promotes inclusive cultures that allow all the organisation's human resources to be utilised to their fullest potential. b. It enables all organisational members to feel good about their membership and performance contributions. *c. It promotes a culture that highly values the talents, ideas and creative potential of the majority members. d. It respects diversity by being fully responsive to personal needs and non-work pressures faced by diverse members. e. It enables managers and people working at all levels of responsibility to benefit from a strong culture based on participation, involvement and empowerment. General Feedback: Page 79. Applied. Learning objective 5. As an organisation, it means committing leadership to making fundamental changes in the organisational culture and its guiding mission and practices. Managers and people working at all levels of responsibility must benefit from a strong organisational culture based on true participation, involvement and empowerment. 85. In contemporary business, the concept of inclusiveness involves all of the following elements EXCEPT: a. valuing diversity and building multicultural organisations that include everyone. b. realising that the human talent pool includes older workers, persons with disabilities, and women. c. valuing the talents of persons of various religious, cultural and national backgrounds, and persons who are not heterosexual. d. drawing on diversity to better align organisations with the challenges and opportunities of the modern environment. *e. ensuring that all stakeholders receive their fair share of the 'corporate pie'. General Feedback: Page 80. Applied. Learning objective 5. Perhaps the most important word in human resource management today is 'inclusiveness'. By valuing diversity and building multicultural organisations that include everyone, we can strengthen organisations and bring them into better alignment with the challenges and opportunities of today's environment. 86. A diversity-mature individual is someone who can positively and honestly answer all of the following questions EXCEPT: a. 'Do you accept personal responsibility for improving your performance?' b. 'Do you accept personal responsibility for improving your organisation's performance?' *c. 'Do you allocate resources on the basis of personal friendship?' d. 'Do you understand yourself and your organisation?' e. 'Do you understand important diversity concepts?' General Feedback: Page 79. Applied. Learning objective 5. See Manager's notepad 3.3. 87. A diversity-mature individual is someone who can positively and honestly answer which of the following questions? a. Are you able to cope with complexity and tensions in addressing diversity? b. Are you willing to challenge the way things are? c. Are you willing to learn continuously? *d. All of the options listed. e. None of the options listed. General Feedback: Page 79. Applied. Learning objective 5. See Manager's notepad 3.3. Essay questions 88. Describe the elements of the general environment and provide an example of each element. Describe the elements of the specific environment and provide an example of each element. Correct Answer: Pages 60-3. The general environment is comprised of: sociocultural (general state of prevailing social values on such matters such as human rights); economic (general state of the economy in terms of inflation, income levels, gross domestic product, unemployment); legal-political (general state of the prevailing philosophy and objectives of the political party or parties running the government, as well as laws and government regulations); technology (general state of the development and availability of technology including scientific advancements); and natural environment conditions (general state of nature and conditions of the natural environment, including levels of public concern expressed through environmentalism). Specific environment includes people and groups with whom an organisation interacts (customers, suppliers, competitors, regulators). 89. Explain why quality is important in operating a business. Correct Answer: Pages 71-3. The competitive demands of a global economy are an important force in this race towards total quality operations. Organisations that want to compete in the world marketplace as 'world-class companies' can gain a competitive advantage by having their operations meet ISO standards. Organisations need to pursue continuous improvement by always searching for new ways to improve the quality and performance in its operations. Many organisations make use of quality circles as a way of improving work quality through periodical employee group meetings and discussions. Students could illustrate with examples how organisations have achieved competitive advantage through quality focus. 90. What is organisational culture and why is it important? Correct Answer: Pages 66-67. Organisational culture is the system of shared beliefs and values that develops within an organisation and guides the behaviour of its members. Strong organisational cultures help to provide a clear vision of what the organisation is attempting to accomplish, allowing individuals to rally around the vision and work hard to support and accomplish it. Strong cultures discourage dysfunctional work behaviour and encourage positive ones. They commit members to do things for and with one another that are in the best interest of the organisation. 91. Explain how organisational subcultures and diversity are linked. Correct Answer: Pages 74-6. Subcultures are common to groups of people with similar values and beliefs based on shared work responsibilities and personal characteristics. Some of these sub-cultures are; occupational sub-cultures (lawyers, scientists), functional sub-cultures (marketing people, finance people), generational sub-cultures (baby boomers, generation X). Diversity means the presence of differences. When one subculture is in majority, others become minorities in respect to representation within the organisation. For example, most senior management tend to be older, white males. There tends to be more diversity within the middle and lower levels of the organisation. Students should illustrate with examples how subcultures and diversity are linked. 92. Explain how diversity can benefit an organisation. Correct Answer: Pages 78-9. A diverse workforce offers a rich pool of talents, ideas and viewpoints useful for solving the complex problems of highly competitive and often uncertain environments. Diversity can be a major asset when well managed. Students should take examples of situations and organisations to illustrate the benefits. Testbank to accompany Management 5th Edition by Schermerhorn et al. Prepared by Tui McKeown, Monash University © John Wiley & Sons Australia, Ltd Chapter 7 Information and decision-making Multiple choice questions 1. Intellectual capital can be defined as: a. the use of new ideas to create a competitive advantage by producing high quality products. b. the concentration of wealth in technologically advanced countries. *c. the shared knowledge of a workforce that can be used to create wealth. d. a plan to promote higher education through annual fund raising events. e. the development of an organisational training program to increase information learning. General Feedback: Page 171. Factual. Learning objective 1. Intellectual capital is the collective brain power or shared knowledge of a workforce. 2. A(n) __________ is someone whose knowledge is an important asset to employers. a. intellectual capitalist b. computer analyst *c. knowledge worker d. knowledge manager e. decision support manager General Feedback: Page 171. Factual. Learning objective 1. A knowledge worker is someone whose knowledge is an important asset to employers. 3. Which of the following statements accurately describes the impact of information technology on organisations? a. More information about more things is being made available to more people in organisations more quickly than ever before. b. Since knowledge is an irreplaceable resource, organisations should always seek to grow and create intellectual capital. c. To compete successfully in an unforgiving business environment, companies must find new and faster ways of sharing critical information and leveraging knowledge resources. *d. All of the options listed. e. None of the options listed. General Feedback: Page 171. Factual. Learning objective 1. Technology is changing the way we do business. We can source so much information from thousands of websites: Google helps us find information in a matter of seconds, storing and using information has never been easier, and we seek new information by attending conferences and training sessions. 4. The combination of computer hardware, software, networks and databases that allow information to be shared, stored and manipulated is known as: a. intellectual capital. b. computer competency. c. information competency. *d. information technology. e. the electronic office. General Feedback: Page 172. Factual. Learning objective 1. Progressive organisations are doing all they can to use computers and information technology to streamline work, improve operating efficiencies and make overall performance improvements. 5. The use of computers that allow sophisticated voice, image, text and other data handling is known as the: a. an information office. b. a virtual office. c. modern office. *d. 'smart' stations. e. office of the future. General Feedback: Page 172. Factual. Learning objective 1. People work at 'smart' stations supported by computers that allow sophisticated voice, image, text and other data-handling operations. 6. Companies that invest in information technology in the quest for competitive advantage can expect to benefit through: a. lower costs. b. improved customer services. c. better quality. *d. all of the options listed. e. none of the options listed. General Feedback: Page 172. Applied. Learning objective 1. It breaks barriers by making communication easy, immediate, inexpensive and important. 7. The increasing use of information technology (IT) can help organisations better manage relationships with their environments in which of the following ways? a. IT helps organisations take care of their customers. b. IT helps organisations work well with their resource suppliers. c. IT helps build and manage relationships with strategic partners. *d. All of the options listed are ways that IT can help organisations manage relationships with their environments. e. None of the options listed is a way that IT can help organisations manage relationships with their environments. General Feedback: Page 172-73. Factual. Learning objective 1. IT use is breaking down barriers within organisations and between the organisation and its environment. 8. __________ is the process of buying and selling goods electronically through the use of the Internet and related information technologies. a. Information management *b. Electronic commerce c. Information management d. Robotics e. The electronic office General Feedback: Page 175. Factual. Learning objective 1. Electronic commerce is buying and selling goods and services through use of the internet. 9. Which of the following sequence of stages accurately describes the stages of development in e-commerce? a. Establish a web presence, secure an online identity, enable e-commerce, utilise a service application model, and provide e-commerce and customer relationship management. b. Establish a web presence, enable e-commerce, secure an online identity, utilise a service application model, and provide e-commerce and customer relationship management. c. Secure an online identity, utilise a service application model, enable e-commerce, establish a web presence, and provide e-commerce and customer relationship management. *d. Secure an online identity, establish a web presence, enable e-commerce, provide eand customer relationship management, and utilise a service application model. e. Utilise a service application model, secure an online identity, establish a web presence, provide e-commerce and customer relationship management, and enable e-commerce. General Feedback: Page 175. Factual. Learning objective 1. The stages of development in e-commerce are: Secure an online identity, establish a web presence, enable e-commerce, provide ecommerce and customer relationship management, and utilise a service application model. 10. Which of the following is not a characteristic of useful information? a. The information is available when needed. b. The information is accurate and reliable. c. The information is complete and sufficient for the task at hand. d. The information is appropriate for the task at hand. *e. The information will enable the user to be involved in making decisions and increase the likelihood of his/her commitment to those decisions. General Feedback: Page 176. Factual. Learning objective 2. 11. Useful information has the characteristics of: a. timeliness, quantity, completeness, relevance and understandability. *b. timeliness, quality, completeness, relevance and understandability. c. timeliness, quality, completeness, relevance and acceptance. d. timeliness, quantity, quality, completeness and acceptance. e. timeliness, completeness, relevance, applicability and acceptance. General Feedback: Page 176. Factual. Learning objective 2. The characteristics of useful information are: timeliness, quality, completeness, relevance and understandability. 12. A good information system provides managers with 'intelligence information' concerning the: a. activities of non-managerial personnel. b. the scores of job applicants on aptitude tests. c. the activities of key subunits within the organisation. *d. the activities of a variety of outside parties in the organisation's external environment. e. the historical record of the organisation's performance accomplishments. General Feedback: Page 176. Factual. Learning objective 2. In addition to the gathering of intelligence information, organisations also provide to the external environment many types of public