Beedmc 8e Ch 07 - Test Banks for Ethics course 2nd to 3rd year level PDF

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Test Banks for Ethics course
2nd to 3rd year level...

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Chapter 7—Organizational Factors: The Role of Ethical Culture and Relationships MULTIPLE CHOICE 1. Expert power usually stems from a. a superior's credibility with his or her subordinates. b. the belief that a certain person has the right to exert influence and that certain others have an obligation to accept it. c. a person's ability to influence the behavior of others by offering them something desirable. d. a person's ability to penalize the actions or behavior of another. e. a person's perceptions that his or her goals or objectives are similar to another's. ANS: A

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2. Which of the following statements about power is true? a. The five bases of power are mutually exclusive. b. People generally use only one base of power to effect change in others. c. Expert power exists when one person takes actions that will lead that person and others to achieve their mutual objectives. d. Power can be used to motiv0ate individuals ethically or unethically. e. The use of power is unethical. ANS: D

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3. An organization that delegates decision-making authority as far down the chain of command as possible and has relatively few formal rules is a. centralized. b. decentralized. c. scientific. d. humanistic. e. eclectic. ANS: B

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4. Under the Federal False Claims Act, a Qui tam relator is a. someone who should be fired b. an employee who has been accused of accepting a bribe c. a whistle-blower who provides information to the government about a company's wrongdoing. d. an employee who has behaved unethically. ANS: C

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5. Although both structures can create opportunities for unethical conduct, which organizational structure tends to be more ethical? a. Eclectic b. Scientific c. There is no difference. d. Decentralized e. Centralized ANS: E

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1 © 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

6. The ability to influence the behavior of others by offering them something desirable is best described as a. coercive power. b. reward power. c. expert power. d. legitimate power. e. referent power. ANS: B

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7. An advantage of the decentralized organization is that a. the focus is on formal rules, policies, and procedures backed up with elaborate control systems. b. there is a high level of bureaucracy. c. each worker knows his or her job and what is specifically expected as well as how to carry out designated tasks. d. it is adaptable and can quickly respond to external change. e. there is minimal upward communication. ANS: D

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8. Leaders who utilize reward power might reward other employees with a. raises. b. promotions. c. status. d. praise. e. All of these would be considered rewards. ANS: E

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9. The apathetic organizational culture exhibits a. high concern for people but minimal concern for performance. b. little concern for people but a high concern for performance. c. minimal concern for people and performance. d. high concern for people and performance. e. no concern for maintaining a cohesive organizational culture. ANS: C

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10. The exacting organizational culture is concerned with a. performance but has little concern for employees. b. investors' impressions of profitability. c. maintaining a strong corporate culture. d. employees and performance. e. employees' impressions. ANS: A

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11. Corporate culture applies to a. public corporations only. b. private corporations only. c. partnerships only. d. all business organizations. 2 © 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

e. all organizations. ANS: E PTS: 1 12. Which of the following statements about corporate culture is false? a. Corporate culture refers to the patterns and rules that govern the behavior of an organization and its employees, particularly the shared values, beliefs, and customs. b. The values and ethical beliefs that actually guide the firm's employees are always the same ones that management states as defining the firm's culture. c. Corporate culture includes the behavioral patterns, concepts, values, ceremonies, and rituals that take place in an organization. d. The culture of an organization may be explicitly stated or unspoken. e. Failure to monitor or manage an organization's culture may foster unethical behavior. ANS: B

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13. Informal dress codes, working late, participation in extracurricular activities, gestures, and legends represent a. an organization's corporate culture. b. codes of ethics. c. a firm's organizational chart. d. formal expressions of an organization's culture. e. informal expressions of an organization's culture. ANS: E

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14. A cultural audit may be used to identify a. how cultured a firm's employees are. b. unethical employees. c. unethical organizations. d. an organization's culture. e. organizational structure. ANS: D PTS: 1 15. Committees, formal groups of individuals assigned to a specific task, a. always make the right decisions. b. deal exclusively with ethics issues. c. typically take longer to reach a decision than would an individual. d. generally make more liberal decisions than those made by individuals. e. do not bring more skills to solve a problem than does any one person. ANS: C

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16. Tiffany has been the top sales rep in her company for the past ten years. She has developed countless tricks and tips to continue to bring in customers. Tiffany would likely have ____ over a new sales rep. a. coercive power b. group power c. Legitimate power d. Expert Power ANS: D

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17. ____ bring together the functional expertise of employees from several different areas of the organization on a single project. 3 © 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

a. b. c. d. e.

Quality circles Informal groups Teams Work groups Committees

ANS: C

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18. Individuals, often from the same department, who band together for purposes that may or may not be relevant to the organization are called a. quality circles. b. informal groups. c. teams. d. work groups. e. committees. ANS: B

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19. Group norms a. apply only to informal groups. b. do not conflict with the values prescribed by the organization's culture. c. do not conflict with the organization's rules and regulations. d. are standards of behavior that groups expect of their members. e. are the patterns and rules that govern the behavior of an organization and its employees, particularly the shared values, beliefs, and customs. ANS: D

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20. Which of the following statements about group norms is false? a. Group norms define the limit on deviation from group expectations. b. Group norms have the power to force a strong degree of conformity among group members. c. Management must carefully monitor the norms of all the various groups within the organization, as well as the organization's corporate culture. d. Sanctions may be necessary to bring in line a group whose norms deviate sharply from the overall culture. e. Group norms never conflict with the overall organization's culture. ANS: E

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21. Management's sense of the organization's culture a. is the same as employees' perceptions. b. is easily adopted by employees. c. is readily evident to employees. d. may be quite different from employees' perceptions. e. is always different from employees' perceptions. ANS: D

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22. According to the text, motivation is defined as a. incentive or drive. b. a force within the individual that focuses his or her behavior on achieving a goal. c. personal ambition without regard to the impact on others. 4 © 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

d. a desire to achieve an end. e. individual goals. ANS: B

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23. When a foreman orders an assembly-line employee to carry out a particular task, even one that the employee perceives as unethical, the foreman is exercising a. legitimate power. b. expert power. c. reward power. d. contingent punishment power. e. noncontingent reward behavior. ANS: A

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24. To motivate employees, an organization offers ____ to ____ employees to work toward organizational objectives. a. punishment, force b. peer pressure, guilt c. incentives, encourage d. rewards, bribe ANS: C

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25. Which of the following combines high levels of concern for people and performance? a. Apathetic culture b. Caring culture c. Integrative culture d. Exacting culture e. Cooperative culture ANS: C

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26. Ethical concerns in centralized structures can occur because of very little a. mobility. b. upward communication. c. scapegoating. d. downward communication. e. communication rigidity. ANS: B

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27. A high concern for people but minimal concern for performance can best describe the ____ culture. a. caring b. apathetic c. exacting d. shareholder e. employee ANS: A

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28. The establishment of an ethics committee within an organization a. is usually highly informal. 5 © 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

b. is usually organized around general business topics. c. can be misused if it is established for the purpose of legitimizing management's standards on a particular issue. d. usually always succeeds. e. usually increases ethical tension. ANS: C

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29. The "grapevine" within an organization is an important source of ethical information for a. quality circles. b. teams. c. work groups. d. committees. e. informal groups. ANS: E

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30. ____ are used to subdivide duties within functional areas of a company. a. Work groups b. Individuals c. Experts d. Consultants e. Committees ANS: A

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31. The ____ leader demands instantaneous obedience and focuses on punishing wrong behavior, achievement, initiative, and self-control. a. democratic b. coaching c. affiliative d. coercive e. pacesetting ANS: D

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32. Bob inspires his employees to follow a vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Bob has helped to create a(n) ____ culture. a. authoritative b. caring c. integrative d. exacting e. affiliative ANS: C

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33. Ethical decisions within organizations are often made by a. individuals. b. laws. c. peers. d. committees and formal and informal groups. e. ethics auditors. 6 © 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

ANS: D

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34. In the past 50 years, scholars have developed at least 164 definitions of culture. According to the text, all have the following common elements: a. Culture is shared, relatively stable, and is formed over a long period of time. b. Culture is not shared, but stable, and is formed over a long period of time. c. Culture is shared, but not stable, and is formed over a long period of time. d. Culture is shared, stable, and covers and is formed very short period of time. e. Culture is man- made, shared, not stable, and is formed over a short period of time. ANS: A

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35. Because researchers have defined culture so many different ways, ____ and ____ are often used interchangeably. a. cultural cues, management b. cultural values, anthropology c. cultural values, culture d. cultural cues, laws e. cultural cues, management ANS: C

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36. Explicit statements of values, beliefs and customs usually come from a. lower management. b. middle management. c. independent auditors. d. line supervisors. e. top management. ANS: E

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37. A values-based ethics culture approach to ethical corporate cultures relies upon a(n) ____ that defines the firm as well as how customers and employees should be treated a. set of laws b. explicit mission statement c. strong CEO d. ethical audit e. corporate culture that encourages ethical behavior ANS: C

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38. The idea that people learn ethical or unethical behavior while interacting with others who are a part of their role sets is referred to as a. differential dissonance. b. cognitive memory dissonance. c. cognitive association. d. differential association. e. friendly association. ANS: D

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39. The Sarbanes-Oxley Act has a. only been established for firms over 50 employees. 7 © 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

b. c. d. e.

institutionalized internal whistle-blowing. power under the Securities and Exchange Commission All of these statements are true. None of these statements is true.

ANS: B

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40. The ____ rule explains the percentage of employees in any given organization who will seek to do right versus how many will be indifferent. a. 10-30-40-20 b. 20-30-30-20 c. 40-10-10-40 d. 10-40-40-10 e. 80-20 ANS: D

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ESSAY 41. Why do centralized organizations tend to be more ethical than decentralized ones? Can you think of a situation or example in which a decentralized organization might be more ethical than a centralized one?

Because of the strict formalization and implementation of ethics policies and procedures in centralized organizations, they tend to be more ethical in their practices than decentralized organizations. Centralized organizations may also exert more influence on their employees because they have a central core of policies and codes of ethical conduct. Decentralized organizations give employees extensive decision-making autonomy because management empowers the employees. Ambiguity in the letter versus the spirit of rules can create ethical challenges, especially for newer managers. However, it is also true that decentralized organizations may avoid ethical dilemmas through the use of effective codes of conduct and ethics. If widely shared values and effective ethics programs are in place in decentralized organizations, there may be less need for excessive compliance systems. However, different units in the company may evolve with diverse value systems and approaches to ethical decision making. Unethical behavior is possible in centralized or decentralized structures when specific corporate cultures permit or encourage workers to deviate from accepted standards or ignore corporate legal and ethical responsibilities. Centralized firms may have a more difficult time uprooting unethical activity than decentralized organizations as the latter has a more fluid structure in which changes may affect only a small portion of the company. Often, when a centralized firm uncovers unethical activity and it appears to be pervasive, the leadership is removed so the old unethical culture is uprooted and replaced with a more ethical one. For example, Mitsubishi Motors suggested significant management changes after it was discovered a cover-up of auto defects had gone on for more than two decades

ANS: Page 304 PTS: 1 8 © 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

42. Utilizing the concern-for-people by concern-for-performance matrix, define the four quadrants and discuss the characteristics of each. Give examples of companies you can think of that represent each type of culture. Explain why you selected the company for each culture. ANS: Page 289 PTS: 1 43. Explain how corporate culture influences the ethical behavior of an organization ANS: Pages 285-288 PTS: 1 44. Compare and contrast the five bases of power outlined in the book. ANS: Pages 298-301 PTS: 1 45. How do group norms influence the ethical behavior of an organization? What happens when the norms of a particular group conflict with the organization's corporate culture or objectives?

Group norms are standards of behavior groups expect of their members. Just as corporate culture establishes behavior guidelines for an organization’s members, group norms help define acceptable and unacceptable behavior within a group. In particular, group norms define the limit allowed on deviations from group expectations. Norms provide explicit ethical directions. For example, there may be a behavioral expectation that personal cell phones cannot be brought into the work place. Many group norms relate directly to managerial decisions. There may be the expectation that all advertising claims are truthful. Salespersons may be required to never lie to a customer. Most work organizations develop norms that govern group rates of production and communication with management, as well as provide a general understanding of behavior considered right or wrong, ethical or unethical, within the group. For example, group members may punish an employee who reports to a supervisor that a coworker has covered up a serious production error. Other members of the group may glare at the informant, and refuse to talk to or sit next to him or her. Norms have the power to enforce a strong degree of conformity among group members. At the same time, norms define the different roles for various positions within the organization. A low-ranking member of a group may be expected to carry out an unpleasant task such as accepting responsibility for someone else’s ethical mistake. Abusive behavior toward new or lower-ranking employees could be a norm in an informal group. Sometimes group norms conflict with the values and rules prescribed by the organization’s culture. The organization may have policies prohibiting the use of personal social networking sites during work hours and use rewards and punishments to encourage this. In a particular informal group, norms may accept using personal social networking sites during work hours and try to avoid management’s attention. Issues of equity may arise in this situa9 © 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

tion if other groups believe they are unfairly forced to follow policies that are not enforced on the other group. These...