Managing Organizations and Leading People |243
questions with verified answers
Accountability Ans✓✓✓ Means that people with authority and responsibility are
subject to reporting and justifying task outcomes to those above them in the
chain of command.
activity ratio Ans✓✓✓ Measures the organization's internal performance with
respect to key activities defined by management.
alienated follower Ans✓✓✓ A person who is an independent, critical thinker but
is passive in the organization.
ambidextrous approach Ans✓✓✓ Incorporating structures and processes that
are appropriate for both the creative impulse and the systematic implementation
of innovations.
attitude Ans✓✓✓ A cognitive and affective evaluation that predisposes a person
to act in a certain way.
attributions Ans✓✓✓ A judgment about what caused a person's behavior—
either characteristics of the person or of the situation.
authentic leadership Ans✓✓✓ Leadership by individuals who know and
understand themselves, who espouse and act consistent with higher-order ethical
values, and who empower and inspire others with their openness and
authenticity.
,Authoritarianism Ans✓✓✓ The belief that power and status differences should
exist within an organization.
Authority Ans✓✓✓ The formal and legitimate right of a manager to make
decisions, issue orders, and allocate resources to achieve outcomes desired by the
organization.
balance sheet Ans✓✓✓ Shows the firm's financial position with respect to assets
and liabilities at a specific point in time.
balanced scorecard Ans✓✓✓ A comprehensive management control system that
balances traditional financial measures with measures of customer service,
internal business processes, and the organization's capacity for learning and
growth.
BCG matrix Ans✓✓✓ A concept developed by the Boston Consulting Group (BCG)
that evaluates strategic business units with respect to two dimensions—business
growth rate and market share—and classifies them as cash cows, stars, question
marks, or dogs.
Benchmarking Ans✓✓✓ The continuous process of measuring products, services,
and practices against major competitors or industry leaders.
Big Five personality factors Ans✓✓✓ Dimensions that describe an individual's
extroversion, agreeableness, conscientiousness, emotional stability, and openness
to experience.
,bottom of the pyramid (BOP) concept Ans✓✓✓ Proposes that corporations can
alleviate poverty and other social ills, as well as make significant profits, by selling
to the world's poor.
Bottom-up approach Ans✓✓✓ which means encouraging the flow of ideas from
lower levels and making sure they get heard and acted upon by top executives.
bottom-up budgeting Ans✓✓✓ Involves lowerlevel managers anticipating their
department's budget needs and passing them up to top management for
approval.
Business-level strategy Ans✓✓✓ Pertains to each business unit or product line
within the organization.
capital budget Ans✓✓✓ A budget that plans and reports investments in major
assets to be depreciated over several years.
cash budget Ans✓✓✓ A budget that estimates receipts and expenditures of
money on a daily or weekly basis to ensure that an organization has sufficient
cash to meet its obligations.
centralization Ans✓✓✓ Means that decision authority is located near top
organization levels.
chain of command Ans✓✓✓ An unbroken line of authority that links all
individuals in the organization and specifies who reports to whom.
, change agent Ans✓✓✓ An organization development (OD) specialist who
contracts with an organization to help managers facilitate change.
changing Ans✓✓✓ The "intervention" stage of organization development (OD),
when change agents teach people new behaviors and skills and guide them in
using them in the workplace.
characteristics of creative people and organizations Ans✓✓✓
Charismatic Leader Ans✓✓✓ A leader who has the ability to inspire and motivate
people to transcend their expected performance, even to the point of personal
sacrifice.
Classical Perspective on Management Ans✓✓✓ Scientific, Beaurocratic,
Administrative approaches
Coaching style Ans✓✓✓ high focus on both people and tasks
coercive power Ans✓✓✓ Power that stems from the authority to punish or
recommend punishment.
cognitive dissonance Ans✓✓✓ A psychological discomfort that occurs when two
attitudes or an attitude and a behavior conflict.
collaboration Ans✓✓✓ A joint effort between people from two or more
departments to produce outcomes that meet a common goal or shared purpose.
questions with verified answers
Accountability Ans✓✓✓ Means that people with authority and responsibility are
subject to reporting and justifying task outcomes to those above them in the
chain of command.
activity ratio Ans✓✓✓ Measures the organization's internal performance with
respect to key activities defined by management.
alienated follower Ans✓✓✓ A person who is an independent, critical thinker but
is passive in the organization.
ambidextrous approach Ans✓✓✓ Incorporating structures and processes that
are appropriate for both the creative impulse and the systematic implementation
of innovations.
attitude Ans✓✓✓ A cognitive and affective evaluation that predisposes a person
to act in a certain way.
attributions Ans✓✓✓ A judgment about what caused a person's behavior—
either characteristics of the person or of the situation.
authentic leadership Ans✓✓✓ Leadership by individuals who know and
understand themselves, who espouse and act consistent with higher-order ethical
values, and who empower and inspire others with their openness and
authenticity.
,Authoritarianism Ans✓✓✓ The belief that power and status differences should
exist within an organization.
Authority Ans✓✓✓ The formal and legitimate right of a manager to make
decisions, issue orders, and allocate resources to achieve outcomes desired by the
organization.
balance sheet Ans✓✓✓ Shows the firm's financial position with respect to assets
and liabilities at a specific point in time.
balanced scorecard Ans✓✓✓ A comprehensive management control system that
balances traditional financial measures with measures of customer service,
internal business processes, and the organization's capacity for learning and
growth.
BCG matrix Ans✓✓✓ A concept developed by the Boston Consulting Group (BCG)
that evaluates strategic business units with respect to two dimensions—business
growth rate and market share—and classifies them as cash cows, stars, question
marks, or dogs.
Benchmarking Ans✓✓✓ The continuous process of measuring products, services,
and practices against major competitors or industry leaders.
Big Five personality factors Ans✓✓✓ Dimensions that describe an individual's
extroversion, agreeableness, conscientiousness, emotional stability, and openness
to experience.
,bottom of the pyramid (BOP) concept Ans✓✓✓ Proposes that corporations can
alleviate poverty and other social ills, as well as make significant profits, by selling
to the world's poor.
Bottom-up approach Ans✓✓✓ which means encouraging the flow of ideas from
lower levels and making sure they get heard and acted upon by top executives.
bottom-up budgeting Ans✓✓✓ Involves lowerlevel managers anticipating their
department's budget needs and passing them up to top management for
approval.
Business-level strategy Ans✓✓✓ Pertains to each business unit or product line
within the organization.
capital budget Ans✓✓✓ A budget that plans and reports investments in major
assets to be depreciated over several years.
cash budget Ans✓✓✓ A budget that estimates receipts and expenditures of
money on a daily or weekly basis to ensure that an organization has sufficient
cash to meet its obligations.
centralization Ans✓✓✓ Means that decision authority is located near top
organization levels.
chain of command Ans✓✓✓ An unbroken line of authority that links all
individuals in the organization and specifies who reports to whom.
, change agent Ans✓✓✓ An organization development (OD) specialist who
contracts with an organization to help managers facilitate change.
changing Ans✓✓✓ The "intervention" stage of organization development (OD),
when change agents teach people new behaviors and skills and guide them in
using them in the workplace.
characteristics of creative people and organizations Ans✓✓✓
Charismatic Leader Ans✓✓✓ A leader who has the ability to inspire and motivate
people to transcend their expected performance, even to the point of personal
sacrifice.
Classical Perspective on Management Ans✓✓✓ Scientific, Beaurocratic,
Administrative approaches
Coaching style Ans✓✓✓ high focus on both people and tasks
coercive power Ans✓✓✓ Power that stems from the authority to punish or
recommend punishment.
cognitive dissonance Ans✓✓✓ A psychological discomfort that occurs when two
attitudes or an attitude and a behavior conflict.
collaboration Ans✓✓✓ A joint effort between people from two or more
departments to produce outcomes that meet a common goal or shared purpose.
