Principles of Management - Chapter 4 and Chapter 7 PDF

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[TRUE/FALSE] Government regulations are considered an internal factor for change because they force the business to change how it functions. [TRUE/FALSE] Employers believe the main reason people leave their jobs is stress. [TRUE/FALSE] Design thinking can do for innovation what TQM did for quality. Which would be considered a disruptive innovation? Humans develop the capability of communicating telepathically. Falling interest rates are an example of what external force? economic change The technology change in the manufacturing process of New Ideas, Inc.'s products to make the process more efficient is the result of a competitor lowering its price. Therefore, it was a(n) ________. external force of change Increasing the numbers of employed women and minorities forces managers to pay attention to what change factor? changes in the composition of the workforce Which one of the following represents a change in technology? Hand-held calculators replaced pencil and paper in the workplace. Organizations need change because ________. external and internal factors create the forces for change Stress symptoms are grouped under the categories of ________. physical, psychological, and behavioral Only speaking one language is one sign that a nation suffers from Parochialism Parochialism view the world solely through one's own eyes and perspectives ethnocentric never traveled abroad and relates well only to people from her home country An ethnocentric attitude stems from parochialism geocentric joins an international student association in order to better understand the views of students from other countries

polycentric view that employees in the host country know the best practices for running their operations facilities in 13 different countries managed by a native of the country polycentric In today's global environment, managers must have a(n) ________ attitude to be successful geocentric euro The single European Union currency The North American Free Trade Agreement includes Mexico, Canada, and the United States multinational corporation a company that maintains operations in multiple countries multidomestic corporation decentralizes its management and other decisions to the local country borderless organization A corporation drops its organizational structure based on countries and reorganizes into industry groups transnational organization reflects the geocentric attitude exporting offer his furniture for sale in other countries importing buys consumer electronics from vendors in China and Japan to sell in her store Harley Davidson makes motorcycles but in its retail stores it also sells clothing, motorcycle accessories, jewelry, and many related products made by other companies licensing Joint ventures are a type of strategic alliance Differences in the ________ can lead to uncertainty and risk for global managers political/legal environment free market economy is one in which resources are primarily owned and controlled by the private sector

a central committee formed by the political powers decides what products and how many of each will be produced a planned economy Alfredo believes that the CEO is no better than the janitor of the organization and neither should receive preferential treatment. Using the GLOBE model, what can we infer about Alfredo's culture Alfredos culture is low in power distance Caron admits she's a tough cookie. She thrives in an environment in which employees compete against each other for big rewards is high in assertiveness Outsiders would call them clannish. Ianos and his family are very close. At work, he gives his all to the team. His neighbors support each other but exclude people they do not know. This describes a culture that is high in in-group collectivism Being a manager, with no environmental uncertainty or threat of competitors' new products, would be relatively simple without organizational change Managing change is an integral part of every manager's job government laws and regulations The Sarbanes-Oxley Act of 2002 is an example of which of the following forms of environmental change? replace human labor with robots Assembly-line technology is changing dramatically as organizations labor markets Changing human resource management activities to attract and retain health care specialists due to increased needs for those workers is an example of what kind of environmental change factor? Labor markets cost efficient Global economic pressures force organizations to become more economic changes Falling interest rates are an example of what external force? technology Which of the following is not an internal force of change?

Workforce Which of the following is not an external force of change? the internal operations of the organization Internal forces that stimulate the need for change tend to originate primarily from the impact of external forces or from strategy What change factor did Steve Bennett address in his turnaround of Intuit, Inc? workforce Increasing the numbers of employed women and minorities forces managers to pay attention to what change factor? employee attitudes Labor strikes are an example of what change factor that may encourage a change in management thinking and practices? occasional; continuous One of the primary views of the change process is ______________, while the other view is ______________. "calm waters" Lewin's theory is consistent with which view of organizational change? restraining According to Kurt Lewin, which of the following is not a stage in the change process? unfreezing According to Kurt Lewin, increasing the driving forces, which direct behavior away from the status quo, is a means of doing which of the following? preparing for the needed change The unfreezing step of the change process can be thought of as ______________. stabilizes the new situation According to Lewin, which of the following is the objective of refreezing? white-water rapids metaphor The ______________ is consistent with uncertain and dynamic environments. a continual process In the white-water rapids metaphor, change is a natural state, and managing change is _____________.

new and novel ... now What is an emerging and evolving consumer trend that Hallmark identified? Change agents In organizations, people who act as catalysts and assume the responsibility for managing the change process are called ______________. Culture tends to be very resistant to change. Which of the following represents the relationship between organizational culture and change? Job redesigns _______________ that increase opportunities for employees to participate in decisions and to gain social support have been found to lessen stress. Change Agents People who act as catalysts and assume the responsibility for managing change activities. 3 examples of change agents Managers or non managers; Employees of the organization; Outside consultants Outside agents Can offer an objective perspective; Usually have an inadequate understanding of the organization's history, culture, operating procedures, and personnel; Don't have to live with the repercussions after the change is implemented Internal agents Have to live with the consequences of their actions; May be more thoughtful; May be more cautious. 4 Approaches To Managing Change Lewin's Three-Step Model; Kotter's Eight-Step Plan for Implementing Change; Action Research; Appreciative Inquiry Lewin's Three-Step Model For Implementing Change unfreezing, moving, refreezing Unfreezing Change efforts to overcome the pressures of both individual resistance and group conformity. Moving Efforts to get employees involved in the change process. Refreezing Stabilizing a change intervention by balancing driving and restraining forces.

Unfreezing Arouse dissatisfaction with the current state; Activate and strengthen top management support; Use participation in decision making; Build in rewards. Moving Establish goals; Institute smaller, acceptable changes that reinforce and support change; Develop management structures for change; Maintain open, two-way communication. Refreezing Build success experiences; reward desired behaviour; Develop structures to institutionalize the change; Make change work Kotter's Eight-Step Plan for Implementing Change Establish a sense of urgency; Form a coalition; Create a new vision; Communicate the vision; Empower others to act; Develop short-term "wins"; Consolidate improvements; Reinforce changes. Action Research A change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate. 5-step Process of Action Research Diagnosis; Analysis; Feedback; Action; Evaluation Appreciative Inquiry An approach to change that seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance. Steps of Appreciative Inquiry: the "Four D's" Discovery; Dreaming; Design; Destiny 4 examples of cynicism about change Feeling uninformed about what was happening; Lack of communication and respect from one's supervisor; Lack of communication and respect from one's union representative; Lack of opportunity for meaningful participation in decision-making. 6 ways of overcoming resistance to change Education and communication; Participation and involvement; Facilitation and support; Negotiation and agreement; Manipulation and co-optation; Explicit and implicit coercion Education and communication This tactic assumes that the source of resistance lies in misinformation or poor communication; Best used: Lack of information, or inaccurate information

Participation and involvement Prior to making a change, those opposed can be brought into the decision process; Best used: Where initiators lack information, and others have power to resist Facilitation and support The provision of various efforts to facilitate adjustment; Best used: Where people resist because of adjustment problems Negotiation and agreement Exchange something of value for a lessening of resistance; Best used: Where one group will lose, and has considerable power to resist Manipulation and co-optation Twisting and distorting facts to make them appear more attractive; Best used: Where other tactics won't work or are too expensive Explicit and implicit coercion The application of direct threats or force upon resisters; Best used: Speed is essential, and initiators have power Creating a Learning Organization An organization that has developed the continuous capacity to adapt and change; single- and double-loop learning Single-loop learning Errors are corrected using past routines and present policies. Double-loop learning Errors are corrected by modifying the organization's objectives, policies, and standard routines. 5 Characteristics of a Learning Organization The organization has a shared vision; People discard old ways of thinking and standard routines; Members think of all organizational processes as part of a system of interrelationships; People openly communicate with each other without fear of criticism or punishment; People sublimate own interests and work together to achieve the organization's shared vision. 21) Monolingualism is one sign that a nation suffers from ________. A) parochialism B) ethnocentrism C) polycentrism D) geocentrism 22) Parochialism is a tendency to ________. A) think highly of the foreign country in which the organization is doing business B) focus on best approaches and people from around the globe

C) view the world solely through one's own eyes and perspectives D) let employees in the host country figure out how best to do things 23) Bill Sanderson, a manager in a manufacturing firm in New York has a tendency to view the world only through his U.S.-based perspective. What can be deduced about his attitude? A) He has an elitist attitude. B) He has a polycentric attitude. C) He has a parochialistic attitude. D) He has a geocentric attitude. 24) An ethnocentric attitude ________. A) prompts managers to have a global view and look for the best approaches and people regardless of origin. B) is the belief that the home country has the best work approaches and practices C) is the view that employees in the host country know the best work approaches and practices D) gives a manager a much broader understanding of what it takes to manage in a global environment 25) A manager who wishes to be successful in international business should avoid a(n) ________ attitude. A) multicultural B) multiracial C) ethnocentric D) geocentric 26) A(n) ________ attitude is characterized by parochialism. A) geocentric B) acculturated C) multilinguistic D) ethnocentric 27) Managers with a(n) ________ attitude view every foreign operation as different and hard to understand. A) geocentric B) polycentric C) ethnocentric D) regiocentric 28) A(n) ________ attitude is the view that employees in the host country know the best practices for running their operations. A) ethnocentric B) polycentric C) geocentric D) regiocentric

29) In today's global environment, managers must have a(n) ________ attitude in order to be successful. A) ethnocentric B) parochial C) bigoted D) geocentric 30) The ________ was formed by twelve original members with the primary motivation of reasserting the region's economic position against the United States and Japan. A) African Union B) European Union C) Central America Free Trade Agreement D) Association of South-East Asian Nations 31) The single European Union currency is called the ________. A) krone B) krona C) pound D) euro 32) Which of the following countries is a member of the European Union? A) Ireland B) Iceland C) Norway D) Switzerland 33) The North American Free Trade Agreement includes ________. A) Mexico, Canada, and the United States B) Canada, Mexico, and Costa Rica C) the United States, Canada, and Honduras D) Columbia, Mexico, and the United Sates 34) Which of the following is currently under negotiation by 34 countries in the Western Hemisphere? A) African Union B) Free Trade Area of the Americas C) Mercosur D) African Community 35) The Association of Southeast Asian Nations is a trading alliance of ________. A) eight Southeast Asian nations and Japan B) eight Southeast Asian nations C) ten Southeast Asian nations D) ten Southeast Asian nations and China

36) Which of the following is a member of the Association of Southeast Asian Nations? A) China B) Japan C) South Korea D) Myanmar 37) How many members does The African Union have? A) 78 B) 53 C) 64 D) 49 38) Nepal belongs to which of the following regional trade alliances? A) Asia-Pacific Economic Cooperation B) South Asian Association for Regional Cooperation C) Common Wealth of Independent States D) Association of Southeast Asian Nations 39) The World Trade Organization was formed in the year ________. A) 1995 B) 1967 C) 1971 D) 1983 40) The World Trade Organization evolved from which of the following? A) Mercosur B) General Agreement on Tariffs and Trade C) Truman Doctrine D) Marshall Plan 41) The World Trade Organization has ________ member countries and ________ observer governments. A) 176; 50 B) 188; 60 C) 153; 30 D) 161; 40 42) The International Monetary Fund is an organization of ________ countries that promotes international monetary cooperation and provides member countries with policy advice, temporary loans, and technical assistance to establish and maintain financial stability and to strengthen economies. A) 193 B) 172 C) 160 D) 185

43) The ________ is a group of five closely associated institutions, all owned by its member countries, that provides vital financial and technical assistance to developing countries around the world. A) International Chamber of Commerce B) World Bank Group C) Organization for Economic Cooperation and Development D) World Economic Forum 44) The forerunner of the Organization for Economic Cooperation and Development was the ________ that was formed in 1947 to administer American and Canadian aid under the Marshall Plan for the reconstruction of Europe after World War II. A) Organization of European States B) Organizational Council of Europe C) Organization for European Economic Cooperation D) Organization for European Investment 45) The ________ is a Paris-based international economic organization whose mission is to help its 30 member countries achieve sustainable economic growth and employment and raise the standard of living in member countries while maintaining financial stability in order to contribute to the development of the world economy. A) Organization for European Economic Cooperation B) Organizational Council of Europe C) Organization of European States D) Organization for Economic Cooperation and Development 46) According to the text, which of the following is a typical definition of a multinational corporation? A) It is a company that maintains operations in multiple countries. B) It is a company that maintains franchises in multiple countries. C) It is a company that has multiple home bases and manufacturing plants. D) It is a company that pays corporate taxes in at least two countries. 47) The ________ decentralizes its management and other decisions to the local country. A) multidomestic corporation B) global company C) transnational organization D) borderless organization 48) Multidomestic corporations reflect the ________. A) ethnocentric attitude B) polycentric attitude C) geocentric attitude D) xenophobic attitude

49) Which of the following is a multinational corporation that tailors marketing strategies to the host country's unique characteristics? A) borderless organization B) global company C) multidomestic corporation D) transnational organization 50) Multidomestic corporations ________. A) maintain operations in multiple countries, but do not allow managers in each country to make their own decisions B) reflect ethnocentric attitudes C) decentralize management and other decisions to the local country D) attempt to replicate their domestic successes by managing foreign operations from the home country 51) Which of the following is a feature of a multidomestic corporation? A) decisions are taken in the home country B) reflects an ethnocentric attitude C) eliminates artificial geographic borders D) has a decentralized management 52) A ________ centralizes its management and other decisions in the home country. A) global company B) multidomestic corporation C) multicultural company D) multifaceted corporation 53) A global company reflects the ________. A) regiocentric attitude B) ethnocentric attitude C) geocentric attitude D) polycentric attitude 54) Which of the following is the basic difference between multidomestic corporations and global companies? A) Multidomestic corporations typically do business with more countries than global companies. B) Multidomestic corporations are run by global companies but must be owned by a local, national company. C) Multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country. D) Multidomestic corporations reflect an ethnocentric attitude, while global companies reflect a polycentric attitude. 55) An organization drops its organizational structure based on countries and reorganizes into industry groups. This is an example of the company becoming a(n) ________. A) ethnocentric company

B) polycentric organization C) borderless organization D) global company 56) Transnational organizations are also known as ________. A) ethnocentric organizations B) polycentric organizations C) borderless organizations D) multidomestic organizations 57) Which of the following types of global organizations reflects the geocentric attitude? A) multidomestic corporation B) transnational organization C) global company D) regional organization 58) An organization decides to go international. Which of the following steps should it take to do so with a minimal investment? A) It should indulge in global sourcing. B) It should indulge in licensing. C) It should indulge in franchising. D) It should indulge in forming strategic alliances. 59) When an organization makes products domestically and sells them abroad, it indulges in ________. A) importing B) exporting C) licensing D) franchising 60) When an organization acquires products made abro...