57. Skill-based pay compensates employees for the specific jobs they are performing in the organization.


ANS: F

Skill-based pay compensates employees for the skills they can use in the organization, rather than for the specific jobs they are performing.


58. More than 16 percent of the Fortune 1000 companies use skill-based pay programs to motivate employees.


ANS: T


59. The majority of the largest U.S. organizations use skill-based pay for some proportion of their blue-collar workers.


ANS: F

More than 16 percent of the Fortune 1000 companies use skill-based pay systems to motivate employees.




60. Skill-based pay programs are limited by the "topping out" effect.



ANS: T


61. Some organizations have resolved the problem of “topping out” in skill-based pay by installing a gain-sharing program after most employees have learned all the skills required.


ANS: T


62. Flexible benefit plans allow mangers to choose their employee’s pay raise each year, with some restrictions.


ANS: F

Flexible benefit plans allow employees to choose the benefits they want, rather than having management choose for them.

40. One of the six factors on which the ability of rewards to motivate individuals or a team to high performance is durability. Durability means that some rewards last longer than others.


ANS: T 

 41. The ability of rewards to motivate individuals or a team to high performance depends on four factors, which included timeliness, performance contingency, equity, and effort.


ANS: F

The ability of rewards to motivate individuals or a team to high performance depends on six factors, which included availability, timeliness, performance contingency, durability, equity, and visibility.


42. Visible rewards, such as job titles and premium parking spaces, send signals to employees that rewards are available, timely, and based on performance.


ANS: T

43. Extrinsic rewards tend to last longer than intrinsic ones.



ANS: F

Intrinsic rewards tend to last longer than extrinsic ones.


44. Four popular reward systems that organizations use to motivate employees are: gain-sharing programs, profit-sharing programs, skill-based pay, and flexible benefits.


ANS: F

Four popular reward systems that organizations use to motivate employees are: informal reward programs, profit-sharing programs, skill-based pay, and flexible benefits.

Situational constraints can make goal attainment difficult. One of the primary roles of a manager is to ensure that employees have the resources necessary to attain their goals.


ANS: T


34. According to Diversity Competency: Lockheed Martin MS2 Team: The MS2 team established two key goals: (1) to reach at least 75 percent of employees and (2) to establish a baseline of employee understanding of what constitutes a diverse environment.


ANS: T


35. According to Diversity Competency: Lockheed Martin MS2 Team: The MS2 team decided to use diversity focused emails since most employees received paper communication from the company.


ANS: F

The team decided to use a postcard campaign because employees normally receive very little print material from the company. The postcard would stand out from the normal e-mail that people received.


36. One of the limitations to goal setting is that it can lead to major problems when it rewards the wrong behaviors.


ANS: T


37. Individuals who are both satisfied with and committed to an organization are more likely to stay with it and accept the challenges that it presents than are individuals who are less satisfied and committed.

ANS: T

38. The most common outcome of severe job dissatisfaction is defiance (refusing to do what is asked)

ANS: F

The most common outcome of severe job dissatisfaction is quitting.


39. The six factors on which the ability of rewards to motivate individuals or a team to high performance are availability, timeliness, performance contingency, durability, equity, and visibility.

ANS: T

32. Although the set of five needs that Maslow identified may be universal, the logic or sequence of the hierarchy differs from culture to culture.


ANS: T

33. According to research on Maslow's hierarchy, if you have a lower level job, you are more likely to have satisfied esteem and self-actualization needs then if you have a high level job.


ANS: F

The opposite is true. If your goal is to satisfy your esteem and self-actualization needs at work, then you will probably be more satisfied with a top management job than a lower level management job.


34. Maslow’s Hierarchy of Needs is based on values from Europe.


ANS: T

Maslow’s Hierarchy of Needs is based on U.S. values.


35. Maslow’s learned needs model of motivation suggests individuals with strong power motives take action that affects the behaviors of others and has a strong emotional appeal.


ANS: F

The model is based on the work of David McClelland.


36. McClelland's learned needs model suggests individuals with a strong power motive tend to establish, maintain, and restore close personal relationships with others.


ANS: F

This describes individuals with a strong affiliation motive. Individuals with strong power motives take action that affects the behaviors of others and has a strong emotional appeal.

6. For an organization to be effective, it must tackle the motivational challenges involved in arousing individuals’ desires to be productive members of the organization.

ANS: T  Motivation Concepts


7. Performance = ƒ (ability / motivation) is a key motivational principle.

ANS: F

The principle is: Performance = ƒ (ability ´ motivation).


 Motivation Concepts

8. Performance = ƒ (ability ´ motivation) is a key motivational principle.

ANS: T Motivation Concepts

9. Performance = ƒ (needs ´ motivation) is a key motivational principle.

ANS: F

The principle is: Performance = ƒ (ability ´ motivation).
Motivation Concepts

26. The Pollyanna principle states that people process pleasant events more efficiently and accurately than they do unpleasant events.


ANS: T  Creation of Value


27. Person perception is the process by which the individual attributes characteristics or traits to other people.


ANS: T 

Creation of Value


28. The factors that influence how a person perceives another are the characteristics of the perceived, the characteristics of the perceiver, and the situation or context within which the perception takes place.


ANS: T 

Analytic | Creation of Value



29. When John first met Sue, he was rude to her. Sue’s perception of him has been strongly affected by that first impression. This is an example of the implicit personality effect at work in Sue’s perception.


ANS: F

Implicit personality theories are assumptions that people have about the relationships among physical characteristics, personality traits, and specific behaviors.


Analytic | Creation of Value


30. When a man’s voice quality is low in tenseness, the personality judgment made is usually that the man is cantankerous.


ANS: F

When a man’s voice quality is high in tenseness, the personality judgment made is usually that the man is cantankerous.


AACSB Analytic | Creation of Value

67. Another label for the "global mindset" is the ability to "think locally, act globally."

ANS: F

Another label for the "global mindset" is the ability to "think globally, act locally."

Diversity | Individual Dynamics

68. One of the key KSAs of the across cultures competency is understanding, leading and motivating employees with different values and attitudes.

ANS: T


69. One of the key KSAs of the across cultures competency is communicating in the language of the host country in which the individual is working. This ability is crucial for employees who have ongoing communications with people whose native language is different from their own.

ANS: T

70. In the Across Cultures Competency: Carlos Ghosn, CEO, Nissan-Renault, Ghosen states that it is helpful,but not necessary, for leaders to develop a deeper understanding of the country and the culture in which they operate.

ANS: F

Ghosen states that it is essential for leaders to develop a deeper understanding of the country and the culture in which they operate and try to learn about its strengths.

Group Dynamics

71. In the Across Cultures Competency: Carlos Ghosn, CEO, Nissan-Renault, Ghosn says that when he started at Nissan, only one percent of the top management at Nissan were women.


ANS: T
72. The communication competency includes the knowledge, skills, and abilities to use all the modes of transmitting, understanding, and receiving ideas, thoughts and feelings--verbal, listening, nonverbal, written, electronic, and the like--for accurately transferring and exchanging information and emotions.


ANS: T

Individual Dynamics

37. It is possible for an individual to have a successful career without ever being promoted.

ANS: T  Individual Dynamics

38. Career development involves knowing the right people to get ahead.

ANS: F

Career development involves making decisions about an occupation and engaging in activities to attain career goals.

 Individual Dynamics

39. A career plan is defined as a sequence of work-related experiences occupied by a person during a lifetime.

ANS: F

This is the definition of a career. A career plan is the individual’s choice of occupation, organization, and career path.

Individual Dynamics

40. A career plan is the individual’s choice of occupation, organization, and career path.

ANS: T
41. A job is the individual’s choice of occupation, organization, and career path.

ANS: F

This is the definition of a career plan.

42. Career success or failure is determined mostly by the individual in the career.

ANS: T

73. Sustainable development is a pattern of resource use that strives to meet current human needs without compromising the ability of future generations to meet their own needs.

ANS: T  Leadership Principles


74. Xerox is a company that believes conducting business with integrity and transparency builds credibility and attracts investors.

ANS: T Leadership Principles


75. In the Ethics Competency, Johnson and Johnson Stakeholder Ethics and Principles: The company’s credo states that their first responsibility is to their customer.


ANS: T  Leadership Principles


76. In Ethics Competency Johnson and Johnson Stakeholder Ethics and Principles: The company’s credo states that their final responsibility is to their stockholders.

ANS: T Leadership Principles

77. Stakeholder responsibility holds that leaders and other employees have obligations to identifiable groups that are affected or can affect the achievement of an organization’s goals.

ANS: T  Leadership Principles

78. The idea of rights is complex and continually changing.


ANS: T  Leadership Principles

85. The best design for an organization is the network design strategy.


ANS: F

The best design for an organization depends on the nature of the environment, the strategy chosen by top managers.
 

Strategy

86.

The difficulty company leaders have establishing authority with outside employees is a pitfall of network design.

ANS: T Strategy

87. Geographic design has the advantage of being able to specialize in solving the problems of a particular location.

ANS: T  Strategy

88. Functional design has the ability to promote high-quality technical decision making by supporting skill specialization.

ANS: T Strategy


89. In Across Cultures Competency “Eureka,” the take over by Electrolux AB involved standardizing the size and horsepower of motors produced.

ANS: T Strategy

90. In Across Cultures Competency “Eureka,” in take over by Electrolux AB in one of the changes implemented plant manager no longer were being judged based on profit.


ANS: F

In Across Cultures Competency “Eureka,” in take over by Electrolux AB in one of the changes implemented plant manager were being judged based on profit.

Strategy

49. In a organic organization, rules are an integral part of the organization, unlike in a mechanistic organization.

ANS: F

Rules are an integral part of both mechanistic and organic organizations.

 Strategy

50. Integration means that the various units coordinate their work to achieve common goals.

ANS: T Strategy

51. Delegation should occur in conjunction with the assignment of responsibilities

ANS: T Strategy
52. Distribution of work indicates who reports to whom.

ANS: F

Hierarchy of authority indicates who reports to whom.

Strategy
53. Span of control refers to the various ways of dividing up tasks and labor to achieve goals.

ANS: F

Division of labor refers to the various ways of dividing up tasks and labor to achieve goals.

 Strategy

54. An mechanistic organization typically has a high division of labor.

ANS: T Strategy

7. In contrast to franchise, the term division typically is used to identify a broader, often autonomous part of an organization that performs many, if not all, the functions of the parent organization with respect to a product or large geographic area.

ANS: F

In contrast to a department, the term division typically is used to identify a broader, often autonomous part of an organization that performs many, if not all, the functions of the parent organization with respect to a product or large geographic area.

 Strategy
8. How things really get done in an organization and who really has the political clout to make things happen cannot be represented in an organization chart.

ANS: T   Analytic | Strategy

9. An task delegation scheme provides insight on how departments fit together.

ANS: F

An organization chart provides insight on how departments fit together.

Strategy
10. An organization’s design should ease communication among employees and departments to accomplish the goals of the organization.

ANS: T
Strategy
11. Leaders need to assess characteristics of both the present and possible future environments in terms of their potential impact on the organization's ability to function and compete effectively.

ANS: T  Strategy
12. An organization chart is a representation of an organization’s internal structure, indicating how various tasks or functions are interrelated.

ANS: T  Strategy

103. Rapid socialization is generally advantageous.

ANS: T  Group Dynamics

104. Many firms with strong cultures follow a seven-step procedure for socializing new employees.

ANS: T  | Group Dynamics

105. Determining whether or not to hire a specific job candidate is the first step in organizational differentiation.

ANS: F

Determining whether or not to hire a specific job candidate is the first step in effective socialization.

Group Dynamics

106. In training to develop capabilities consistent with culture, extensive theortical based training sessions leads to mastery of one of the core disciplines of the business.

ANS: F

In training to develop capabilities consistent with culture, tough on-the-job training leads to mastery of one of the core disciplines of the business.

 Group Dynamics MSC: Recall

107. Orgazational cultural values represent collective beliefs, assumptions and ideas about what things are good, normal, rational and valuable.

ANS: T  Analytic | Group Dynamics

108. Shared behaviors including norms are more visible and shomewhat easier to change than values.

ANS: T | Group Dynamics

73. Changing socialization processes can be an effective approach to cultural change.

ANS: T 

AACSB Analytic | Operations Management

MSC: Comprehension


74. Cultural change must begin with the employees and staff of the organization.

ANS: F

Cultural change must begin at the top of the organization.

AACSB Analytic | Operations Management


75. Cultural change must begin at the top of the organization.


ANS: T
 AACSB Analytic | Operations Management

76. Organization-wide norms of power, habit, culture, and vested interests are easy to change.

ANS: F

The opposite is true. These things are difficult to change.

AACSB Analytic | Operations Management

77. In organizations undergoing organization-wide changes, senior leaders need to play three roles: envisioning, energizing, and enabling.

ANS: T 

AACSB Analytic | Operations Management

78. According to the Communication Competency: United Technologies’ Diversity Programs, in order to achieve their diversity goals, United Technologies provides all leaders with performance appraisal training to help them make judgments that accurately reflect each associate’s performance and contributions.


ANS: T
AACSB Analytic | Operations Management

79. According to the Communication Competency: United Technologies’ Diversity Programs, since the 1990s, the percentage of women in executive positions at United Technologies has not increased.

ANS: F

The percentage of women in executive positions has increased more than 60 percent.

AACSB Analytic | Operations Management

49. A letter of understanding between a manufacturer and a supplier is an example of an interorganizational agreement

ANS: T
AACSB Analytic | Operations Management


50. Force field analysis suggests that any stable situation can be considered to be in a state of equilibrium resulting from a balance of driving and following forces that are constantly supporting each other.

ANS: F

Force field analysis suggests that any stable situation can be considered to be in a state of equilibrium resulting from a balance of driving and resisting forces that are constantly opposing each other.


Analytic | Operations Management
51. According to force field analysis, any situation can be considered to be in a state of change resulting from an imbalance of forces constantly pushing against each other.

ANS: F

According to force field analysis, any situation can be considered to be in a state of equilibrium resulting from a balance of forces constantly pushing against each other.

Analytic | Operations Management


52. The three steps in Lewin's approach to managing and guiding change are diagnosing, developing, and deploying.

ANS: F

Lewin's approach to managing and guiding change actually consists of these three steps: unfreezing, moving, and refreezing.

Analytic | Operations Management


53. The three steps in Lewin's approach to managing and guiding change are unfreezing, moving, and refreezing.

ANS: T
Analytic | Operations Management

54. Lewin's approach to changing behaviors consists of guiding change through a two-step process that includes thawing and refreezing.

ANS: F

An important part of Lewin's approach to changing behaviors consists of carefully managing and guiding change through a three-step process that includes unfreezing, moving, and refreezing.
Analytic | Operations Management

73. Sustainable development is a pattern of resource use that strives to meet current human needs without compromising the ability of future generations to meet their own needs.

ANS: T


74. Xerox is a company that believes conducting business with integrity and transparency builds credibility and attracts investors.

ANS: T
75. In the Ethics Competency, Johnson and Johnson Stakeholder Ethics and Principles: The company’s credo states that their first responsibility is to their customer.

ANS: T


76. In Ethics Competency Johnson and Johnson Stakeholder Ethics and Principles: The company’s credo states that their final responsibility is to their stockholders.

ANS: T


77. Stakeholder responsibility holds that leaders and other employees have obligations to identifiable groups that are affected or can affect the achievement of an organization’s goals.

ANS: T


78. The idea of rights is complex and continually changing.

ANS: T

67. In the Diversity Competency, Verizon Workplace Diversity: A three component strategy to promote diversity is used. The three components are inclusion index, diversity performance incentive and supplier diversity.

ANS: T

68. In the Diversity Competency, Verizon Workplace Diversity: The inclusion index is defined as a measure derived from the procurement of opportunities and developing and advocating a diversified supplier base.

ANS: F

That is the definition of supplier diversity.

69. In the Diversity Competency, Verizon Workplace Diversity: The inclusion index is defined as a something that measures employees’ sense of belonging through an index developed by our research team based on responses to employee surveys.

ANS: T
70. Stakeholders are individuals or groups that have interests, rights, or ownership in an organization and it’s activities.

ANS: T

71. Stakeholder groups can be harmed by an organization’s mistakes.


ANS: T

72. All stakeholder groups have the same expectations of a given organization.


ANS: F

33. Employees in low uncertainty avoidance cultures accept job mobility and layoffs.

ANS: T

34. Gender role orientation refers to the inborn tendencies to behave in a certain manner according to one’s gender.

ANS: F

Gender role orientation refers to the extent to which a society reinforces, or does not reinforce, traditional notions of masculinity versus femininity.

35. In feminine cultures, dominant values include caring for others, people and relationships, and quality of work life.

ANS: T
36. Short-term orientation is the extent to which the society embraces the virtues oriented toward future rewards.

ANS: F

This is true of societies that embrace long-term orientation.

37. A short-term orientation ranking indicates the society prescribes to the values of sustained commitments, perseverance, and thrift.

ANS: F

This is true of a long-term orientation ranking society.