CHAPTER 3 The Changing Environment of Management: Diversity, Global Economy, and Technology 1. T F Company loyalty is said to rank low on generation Y's list of what is important in life. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 59 2. T F Generation Y members are different in many respects, from their upbringing to their politics. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 59 3. T F Interestingly, more than two-thirds of 18- to 25-year-olds surveyed by the Pew Research Center for the People and the Press have a tattoo. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 60 4. T F As discussed in Chapter 3, the general environment of management includes social, economic, international, and technological dimensions. Ans: False AACSB Outcomes: D; R; T Degree of Difficulty: Moderate Learning Level: fact Page: 61 5. T F Society, according to sociologists, is the product of a constant struggle between the forces of stability and change. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 61 6. T F Employment opportunities for both men and women will continue to grow, according to the demographic trends of the new workforce, but will grow at a faster rate for men. Ans: False AACSB Outcomes: A; D Degree of Difficulty: Moderate Learning Level: fact Page: 62 7. T F Demographics is the study of managerial job opportunities. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Easy Page: 61 Learning Level: fact 8. T F The U.S. workforce is getting older, more diverse, and increasingly female. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 62 9. T F By 2050, the 65-and-over segment of the U.S. population will grow to 21 percent, according to the U.S. Census Bureau. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 62 10. T F Due to quick cultural integration, products and advertising do not need to be tailored to the rapidly growing Hispanic/Latino population. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 62 11. T F The quality of the U.S. labor force is a major concern today. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 62 12. Learning Level: fact T F The U.S. workforce is presently at a competitive disadvantage globally because of deficient skils in reading, writing, science, and basic math. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. . 49 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology Ans: True AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 62 13. T F According to experts, almost 10 percent of working adults in the United States are functionally illiterate. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 62 14. T F English as a Second Language programs, according to a survey from Training magazine, are the most common remedial training programs used by the companies surveyed. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 63 15. T F According to research, older workers are far less productive than the average worker. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 63 16. T F According to research, older workers have a higher absenteeism rate than other age groups. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 63 17. T F Research provides conclusive evidence that older workers have an unacceptably high rate of workplace accidents. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 63 18. T F Older workers need to be managed according to their individual abilities. Ans: True AACSB Outcomes: A; D Degree of Difficulty: Hard Learning Level: fact Page: 64 19. T F The new social contract between employer and employee is based on convenience and mutual benefits, not on a lifetime arrangement. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 64 20. T F In the period between World War II and the 1970s, the implicit social contract between employees and employers was "be loyal to the company and the company will take care of you until retirement." Ans: True AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 64 21. T F In the U.S. workforce, for every dollar that men earned in 2003, women earned 62 cents. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 65 22. T F Fortunately, in the U.S. workplace, recent years have seen a nearly complete closing of the pay gap between men and women. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 65 23. T F The glass ceiling affects both women and minorities. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Moderate Page: 65 Learning Level: fact 24. T F Going into 2007, the Fortune 500 companies were headed by 449 men and 51 women. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 65 25. T F Half of the Fortune 500 companies have no women on their board of directors. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 65 26. T F The glass ceiling, according to Working Woman magazine, results from a serious shortage of qualified women for executive positions. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 50 Ans: False AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 65 27. T F Today, women-owned businesses in the United States employ more than 27 million people. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 65 28. T F Unemployment among whites and among blacks is about the same in the United States. Ans: False AACSB Outcomes: A; D Degree of Difficulty: Moderate Learning Level: fact Page: 65 29. T F The term "contingent workers" refers to employees who can be called to active military duty at any time. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 66 30. T F The common denominator among part-time workers, temporary workers, on-call employees, and independent contractors is that they do not have a long-term implicit contract with their employers. Ans: True AACSB Outcomes: A; D Degree of Difficulty: Hard Learning Level: fact Page: 66 31. T F Part-timers generally are much less expensive to employ than full-time employees. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Easy Learning Level: fact Page: 66 32. T F Researchers have found that part-timers actually have greater job involvement than their full-time coworkers. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 66 33. T F The United States is becoming even more racially and ethnically diverse. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Easy Learning Level: fact Page: 66 34. T F Foreign-born workers make up about 11 percent of the U.S. population, but only 5 percent of the workforce. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 66 35. T F It is projected that Hispanics/Latinos will represent over 24 percent of the U.S. population by 2050. Ans: True AACSB Outcomes: A; D Degree of Difficulty: Hard Learning Level: fact Page: 67 36. T F Hispanics/Latinos are now the largest minority group in the United States. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 67 37. T F Equal employment opportunity, valuing diversity, and affirmative action are different terms for the same process. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 67 38. T F Comprehensive diversity programs are meant only for women and minorities. Ans: False AACSB Outcomes: A; D Degree of Difficulty: Moderate Learning Level: fact Page: 67 39. T F Greater organizational flexibility is a goal of managing diversity programs. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Easy Learning Level: fact Page: 67 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 51 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 40. T F Comprehensive diversity programs create more structured and less flexible organizations. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 67 41. T F The scope of managing diversity is limited only by management's depth of commitment and imagination. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Easy Learning Level: fact Page: 67 42. T F Politics has to do with public influence and control. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 68 Learning Level: fact 43. T F In the political-legal environment, the two key pressure points for managers are the politicization of management and decreased personal legal accountability. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 68 44. T F Managers have little interest in the political-legal environment. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Page: 68 Learning Level: fact 45. T F Minimizing the "surprises" that accompany social and political change is one of the purposes of issues management. Ans: True AACSB Outcomes: A; D Degree of Difficulty: Moderate Learning Level: fact Page: 69 46. T F The emphasis on systematic preparedness for social and political action is the main contribution of issues management. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 69 47. T F On the neutral portion of the political response continuum, managers adopt a "defend status quo" attitude. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 69 48. T F One of the three responses on management's political response continuum is "arbitration." Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 69 49. T F In recent years, more and more business managers have noticeably swung from being politically proactive to being reactive. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 70 50. T F PACs are used to solicit volunteer contributions from employees biannually for support of preferred candidates and parties. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 70 51. T F Lobbying is management's least successful political strategy. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Easy Page: 70 52. 53. T F One form of indirect lobbying is advocacy advertising. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Learning Level: fact Page: 70 T F In 2002, the passing of the Sarbanes-Oxley Act led to more relaxed stipulations on legal and financial accountability. Ans: False AACSB Outcomes: E; R Degree of Difficulty: Moderate Learning Level: fact Page: 71 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 52 54. T F There is a clear trend in the United States toward holding managers personally accountable for corporate misdeeds. Ans: True AACSB Outcomes: E; R Degree of Difficulty: Moderate Learning Level: fact Page: 71 55. T F It is recommended that managers continue to become more politically astute. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 72 56. T F Legal auditing refers to settling legal disputes outside of court. Ans: False AACSB Outcomes: E; R Degree of Difficulty: Moderate Page: 72 Learning Level: fact 57. T F A third-party arbitrator helps the parties reach their own agreement, whereas a mediator makes a binding decision. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 72 58. T F Two forms of legal audits are arbitration and mediation. Ans: False AACSB Outcomes: E; R Degree of Difficulty: Moderate Page: 72 Learning Level: fact 59. T F Managers can use alternative dispute resolution techniques to avoid costly court battles. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 72 60. T F U.S. high school students now score high on personal finance and economics, thanks to education reform programs. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 72 61. T F The United States is shifting from a service-producing to a goods-producing economy. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 72 62. T F Among the first jobs to be outsourced are the general and operational management positions in the service sector. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 73 63. T F Business cycles have variable timing and predictable structure. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 73 64. Learning Level: fact T F Recessions are a normal and expected part of the business cycle. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 73 65. T F Timing is everything when it comes to making good business-cycle-sensitive decisions. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 73 66. T F Successful managers are foresighted rather than hindsighted. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 74 Learning Level: fact 67. T F The author recommends ignoring economic forecasts because forecasters have such a poor track record. Ans: False AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 74 68. T F The global economy really has little if any relevance for the average citizen. Ans: False AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 74 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 53 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 69. T F NAFTA, the EU, and the WTO represents steps toward a single global marketplace. Ans: True AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 74-75 70. T F Economists have documented the significant negative impact of foreign-owned companies in the United States. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 75 71. T F Each of us is personally affected by the global economy in terms of the pressure for higher quality and lower wages. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 75 72. T F Technology is defined as the tools and ideas available for extending the natural physical and mental reach of humankind. Ans: True AACSB Outcomes: R; T Degree of Difficulty: Easy Learning Level: fact Page: 76 73. T F From a definitional standpoint, science and technology are essentially the same thing. Ans: False AACSB Outcomes: R; T Degree of Difficulty: Moderate Learning Level: fact Page: 76 74. T F Because of the Internet revolution, information is no longer considered a strategic resource. Ans: False AACSB Outcomes: R; T Degree of Difficulty: Hard Learning Level: fact Page: 77 75. T F The innovation process involves the systematic development and practical application of a new idea. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 77 76. T F The creation of a working prototype, in the three-step innovation process, is "product technology." Ans: True AACSB Outcomes: R; T Degree of Difficulty: Moderate Learning Level: fact Page: 77 77. T F The last step in the three-step innovation process is conceptualization. Ans: False AACSB Outcomes: R; T Degree of Difficulty: Easy Learning Level: fact Page: 77 78. T F The time it takes to come up with a radically new idea is called innovation lag. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 78 79. T F Pushing decision-making authority to levels where people with the appropriate skills can do the most good is empowerment. Ans: True AACSB Outcomes: C; R Degree of Difficulty: Easy Learning Level: fact Page: 78 80. T F Concurrent engineering is a team approach to product design. Ans: True AACSB Outcomes: R; T Degree of Difficulty: Moderate Page: 78 81. 82. T F Concurrent engineering typically prolongs innovation lags. Ans: False AACSB Outcomes: R; T Degree of Difficulty: Moderate Page: 78 Learning Level: fact Learning Level: fact T F "Intrapreneurs" typically do not quit their present job to pursue an innovative idea. Ans: True AACSB Outcomes: C; R Degree of Difficulty: Moderate Learning Level: fact Page: 79 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 54 83. T F Because they tend to work outside the organization's boundaries, "intrapreneurs" are a threat to organizational effectiveness. Ans: False AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 79 84. T F Rewarding innovation and risk taking will foster "intrapreneurship" within an organization. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 79 85. According to the Conference Board, some _______ million skilled workers will be able to retire by the end of this decade, and companies will need to go the extra mile to replace them. a) 83 b) 9 c) 64 d) 41 e) 26 Ans: c AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 59 86. Generation Y employee are characterized as all except which one of the following? a) Having high expectations b) Demanding c) More loyal to friends than to the company d) Ambitious e) Lazy Ans: e AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 59 87. Race is said to be _______ for generation Y. a) a major hang-up b) less of an issue c) a primary source of conflict d) an identity problem e) a source of confusion Ans: b AACSB Outcomes: R Degree of Difficulty: Hard 88. 89. Learning Level: fact All of the following are dimensions of the social environment except a) demographics. b) the new social contract. c) inequalities. d) legal audits. e) managing diversity. Ans: d AACSB Outcomes: D; R Degree of Difficulty: Moderate Page: 61 The study of demographics can teach managers useful lessons about a) ethics. b) population shifts. c) politics. d) technology. e) economics. Ans: b AACSB Outcomes: D; R Degree of Difficulty: Easy Page: 60 Learning Level: fact Learning Level: fact Page: 60 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 55 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 90. The U.S. workforce is becoming all of the following except a) more racially diverse. b) increasingly female. c) younger. d) larger. e) more ethnically diverse. Ans: c AACSB Outcomes: A; D Degree of Difficulty: Moderate Learning Level: fact Page: 61-62 91. Which of these is presently the second-largest segment of the U.S. population? a) Native Americans b) Blacks c) Whites d) Asians e) Hispanics/Latinos Ans: e AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 62 92. The median age of U.S. employees is _______, with the most vigorous growth for the _______ age group. a) increasing; 55 and older b) decreasing; 55 and older c) decreasing; 54 and younger d) increasing: 54 and younger e) constant; 25 to 35 Ans: a AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 62 93. Heather is a manager at a bank that has developed a Spanish-language version of its training pamphlet. What changing demographic does this address? a) Increase in religious diversity b) Increase in racial/ethnic diversity c) Growth of the labor force d) Aging of the population e) Increase in female employment Ans: b AACSB Outcomes: A; D Degree of Difficulty: Moderate Learning Level: appl Page: 62 94. The U.S. workforce a) has world-class writing skills. b) is shrinking. c) presently is at a competitive disadvantage globally. d) has little need for math skills. e) is number one globally in science skills. Ans: c AACSB Outcomes: D; R Degree of Difficulty: Easy 95. Learning Level: fact Page: 62 Which term applies to an employee who cannot perform basic life skills such as reading a newspaper or completing a job application? a) Contingent worker b) Minority c) Member of the underclass d) Functionally illiterate e) Undocumented Ans: d AACSB Outcomes: A; D Degree of Difficulty: Moderate Learning Level: fact Page: 62 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 56 96. Heinrich Even though he performs his manual labor job very well, Heinrich can't read a newspaper, interpret a bus schedule, or complete an application for a higher position. Heinrich is a) technophobic. b) a contingent worker. c) a permanent part-timer. d) an exempt employee. e) functionally illiterate. Ans: e AACSB Outcomes: A; D Degree of Difficulty: Moderate Learning Level: appl Page: 62-63 97. 98. 99. In a survey by Training Magazine, the _______ program was most popular among companies. a) remedial writing b) remedial reading c) basic life/work skills remedial training d) welfare-to-work transition e) English as a Second Language Ans: c AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 63 How does the U.S. Department of Labor define older workers? a) Workers aged 55 and up b) Workers already retired c) Workers anywhere between 40 and 64 years old d) Workers who are collecting Social Security benefits e) Workers aged 65 and older Ans: a AACSB Outcomes: D; R Degree of Difficulty: Easy Page: 63 Learning Level: fact Rex is 26 and has recently become employed as a cook at a restaurant. He has a mental disability that makes it difficult to perform basic, everyday tasks. What type of remedial training program would be best for Rex? a) Remedial writing b) Remedial reading c) Welfare-to-work transition d) Basic life/work skills e) English as a Second Language Ans: d AACSB Outcomes: A; D Degree of Difficulty: Hard Learning Level: appl Page: 63 100. Which of the following is a myth about older workers? a) They are more costly to employ. b) They are less accident-prone. c) They are more productive. d) They have much better attendance. e) They are more willing to learn new jobs. Ans: a AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 63 101. When compared to younger workers, older workers a) are much more productive. b) have less interest in part-time work. c) are absent more often. d) have lower accident rates. e) are unwilling to learn new jobs. Ans: d AACSB Outcomes: A; D Degree of Difficulty: Hard Learning Level: fact Page: 63 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 57 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 102. According to studies of older employees' interests, older workers prefer a) working for large companies. b) opening their own business. c) task-oriented, rather than people-oriented, jobs. d) jobs involving lots of travel. e) working part-time. Ans: e AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 63 103. Older workers should be managed in accordance with a) their age. b) their age and gender. c) a revised set of standards. d) demographic statistics. e) their individual abilities. Ans: e AACSB Outcomes: D; R Degree of Difficulty: Hard 104. What notion is the new social contract is based on? a) Lifetime employment b) Cradle-to-grave security c) Long-term commitment and employee benefits d) Mutual mistrust e) Short-term convenience and mutual benefits Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Page: 64 Learning Level: fact Page: 64 Learning Level: fact 105. Women hold _______ percent of the managerial and administrative positions in the U.S. civilian workforce. a) 50 b) 60 c) 32 d) 15 e) 4 Ans: a AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 65 106. Lifetime earnings for women in the United States equal, on average, ________ percent of lifetime earnings for their male counterparts. a) 74 b) 85 c) 60 d) 44 e) 50 Ans: d AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 65 107. Which of these statements is true of the male-female pay gap in the United States? a) It is large and shrinking fast. b) It never existed. c) It was recently eliminated thanks to the Equal Pay Act. d) It is still large and persistent. e) It is small and slowly shrinking. Ans: d AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 65 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 58 108. Ginger has been with the same software company for 18 years. For the last 6 years, she has applied for upper-management positions on six occasions, but she was never offered an interview. Which phenomenon is Ginger probably facing? a) The gender skills gap b) The glass ceiling c) The gender wage gap d) The invisible hurdle e) Age discrimination Ans: b AACSB Outcomes: A; D; E Degree of Difficulty: Moderate Learning Level: appl Page: 65 109. Which of the following is a subtle yet strong barrier that has kept women and minorities from assuming top executive positions? a) The dual-track syndrome b) The glass ceiling c) The black hole d) The wall e) The career canyon Ans: b AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 65 110. Which industry group had the most women CEOs going into 2007? a) Not-for-profit organizations b) Banking c) Real estate d) Government agencies e) Transportation Ans: a AACSB Outcomes: A; D Degree of Difficulty: Hard Learning Level: fact Page: 65 111. According to the U.S. Small Business Association, women control how many small businesses in America? a) 2.1 million b) 3.7 million c) 9.1 million d) 20.3 million e) 27.6 million Ans: c AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 65 112. If a student from Dubai asked you about the number of female CEOs at Fortune 500 companies, what would be the correct answer? a) None b) Nearly equal to the number of male CEOs c) Approaching 30 percent d) Still very small e) Projected to be greater the number of male CEOs by 2020 Ans: d AACSB Outcomes: A; D Degree of Difficulty: Moderate Learning Level: appl Page: 65 113. Going into 2007, which of these ratios accurately depicted the Fortune 500's chief executive ranks? a) 491 men to 9 women b) 301 men to 199 women c) 500 men to 0 women d) 380 men to 120 women e) 472 men to 28 women Ans: a AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 65 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 59 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 114. Working Woman magazine cited all of the following as a reason why women are being held back from senior management positions in the United States except a) lack of experience. b) male stereotyping. c) the lingering perception of women as outsiders. d) exclusion from informal networks. e) backlash from the women's liberation movement. Ans: e AACSB Outcomes: A; D Degree of Difficulty: Hard Learning Level: fact Page: 65 115. The U.S. unemployment rate among blacks, when compared with that among whites, is usually a) about 10 times higher. b) about twice as high. c) approximately equal. d) slightly lower. e) less than half. Ans: b AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 65 116. Which definition applies to part-timers and other employees who do not have a long-term implicit contract with their ultimate employers? a) Marginal workers b) Dropouts c) Underutilized workers d) Functional workers e) Contingent workers Ans: e AACSB Outcomes: D; R Degree of Difficulty: Easy Learning Level: fact Page: 66 117. _______ are contingent workers who tend to get lower pay and no benefits. a) Nonunion employees b) Females over 30 c) Part-timers d) Night-shift employees e) Government employees Ans: c AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 66 118. Part-timers are _______ full-time employees. a) much less costly than b) about as costly as c) much more costly than d) One cannot compare because part-timers are contingent workers. e) slightly less costly than Ans: a AACSB Outcomes: D; R Degree of Difficulty: Moderate Page: 66 119. Which of the following terms does not apply to the "flexible workforce"? a) Contingent workers b) Full-time employees c) Just-in-time d) Temporary workers e) Part-timers Ans: b AACSB Outcomes: A; D Degree of Difficulty: Moderate Page: 66 Learning Level: fact Learning Level: fact This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 60 120. Dark Brew Coffee is a struggling small business that laid off more people than required. You have been given the job of hiring people to meet seasonal demand. Keeping in mind the company's financial troubles, which of the following groups would probably be your best choice, according to the text discussion? a) Women b) Part-timers c) Undocumented workers d) Full-time employees e) Physically challenged adults Ans: b AACSB Outcomes: A; D Degree of Difficulty: Moderate Learning Level: appl Page: 66 121. A comprehensive study involving 51,231 employees found ________ among part-timers than among fulltime employees. a) lower job satisfaction b) higher job satisfaction c) lower job involvement d) higher organizational commitment e) higher job involvement Ans: c AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 66 122. By definition, the scope of managing diversity includes a) nonwhites only. b) all employees. c) foreign-born employees only. d) minority women only. e) just women and minorities. Ans: b AACSB Outcomes: D; R Degree of Difficulty: Moderate Page: 67 Learning Level: fact 123. Which of the following is defined as the process of creating an organizational culture that enables all employees to realize their full potential? a) Managing diversity b) Issues management c) Constructive conflict d) Human asset accounting e) Protectionism Ans: a AACSB Outcomes: D; R Degree of Difficulty: Easy Learning Level: fact Page: 67 124. Comprehensive diversity programs strive to create _______ organizations. a) less authoritarian b) flatter c) larger d) more flexible e) more minority-owned Ans: d AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 67 125. Which shift does Jack McDevitt, a sociologist, call for in managing diversity? a) Eliminating interpersonal differences b) From diversity to uniformity c) Away from male domination d) From tolerating people to valuing them e) From equal opportunity to equal outcomes Ans: d AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 67 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 61 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 126. Politics is a) the art of public manipulation. b) the art of public trust. c) the art of public influence and control. d) the art of constructive conflict. e) the art of power and domination. Ans: c AACSB Outcomes: C; D; R Degree of Difficulty: Moderate Learning Level: fact Page: 68 127. What are the two key pressure points for managers when they deal with the political-legal environment? a) The politicization of management and increased personal accountability b) Political promises and voter turnout c) Increased personal accountability and the politicization of consumers d) The politicization of employees and decreased personal accountability e) Decreased personal accountability and the politicization of management Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 68 128. What should managers use if they want to identify and respond in a timely manner to social and political shifts? a) Issues management b) Political risk assessment c) Trial balloons d) Protectionism e) Legal auditing Ans: a AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 69 129. Relic Communications is a medium-sized telecommunications firm. What is Relic engaging in if it hires a lawyer to monitor pending legislation affecting its industry? a) Issues management b) A stakeholder audit c) An internal audit d) Public relations e) An environmental impact study Ans: a AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 69 130. Its emphasis on systematic preparedness for _______ is issues management's main contribution to good management. a) technological and economic action b) legal and technological action c) competitive and global action d) social and political action e) action related to internal effectiveness and efficiency Ans: d AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 69 131. ________ is one of the three reponses on management's political response continuum. a) Negotiation b) Reactive c) Reconciliation d) Problem solving e) Arbitration Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 69 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 62 132. The head of a cosmetics company who takes a "watch and wait" attitude toward proposed federal legislation limiting the use of additives would fall into which category on the political response continuum? a) Passive b) Reactive c) Neutral d) Proactive e) Entrenched Ans: c AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 69 133. When a petroleum company replaced its underground storage tanks two years before the government's deadline, it qualified for a(n) _______ position on the political response continuum. a) proactive b) anticipatory c) neutral d) reactive e) entrenched Ans: a AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 69 134. What would be their position on the political response continuum if managers adopted a "defend status quo" attitude? a) Proactive b) Reactive c) Anticipatory d) Neutral e) Entrenched Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 69 135. When Fast Track Automotive chose to defend one of its car models in court after receiving an unsafe product notice from the government, it qualified for which position on the political response continuum? a) Entrenched b) Proactive c) Anticipatory d) Neutral e) Reactive Ans: e AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: appl Page: 69 136. With regard to the political response continuum, more business managers are becoming a) neutral. b) reactive. c) passive. d) legalistic. e) proactive. Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 70 137. _______ is not one of management's four political strategies. a) Civil disobedience b) Campaign financing c) Coalition building d) Indirect lobbying e) Lobbying Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Page: 70 Learning Level: fact This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 63 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 138. A(n) ________ is a political fund-raising tool that needs to be registered with the U.S. Federal Election Commission and documented with detailed records. a) corporate political coalition b) advocacy board c) ADR d) issues management audit e) political action committee Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 70 139. Which political strategy would the cattle ranching industry rely on when it presented its case directly to members of Congress prior to votes on land preservation matters? a) Coalition building b) Campaign financing c) Lobbying d) Indirect lobbying e) Civil disobedience Ans: c AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: appl Page: 70 140. Managers are finding that ______ around common rallying points is required for political impact when special-interest groups are involved. a) social contracting b) coalition building c) lobbying d) campaign financing e) advocacy advertising Ans: b AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 70 141. Which of the following is a form of indirect lobbying? a) PACs b) Advocacy advertising c) Coalition building d) Campaign financing e) Social contracting Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Page: 70 Learning Level: fact 142. Which of the following terms refers to the controversial practice of promoting a point of view along with a product or service? a) PACs b) Lobbying c) Coalition building d) Advocacy advertising e) Social contracting Ans: d AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: appl Page: 70 143. Tobacco companies that include statements about freedom of choice in their advertisements are relying on a) PACs. b) direct lobbying. c) advocacy advertising. d) protectionism. e) social contracting. Ans: c AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 70 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 64 144. Which law quadruples sentences for accounting fraud? a) Enron-Arthur Andersen b) Bush-Cheney c) Sarbanes-Oxley d) Civil Rights Act e) Political Reform Act Ans: c AACSB Outcomes: E; R Degree of Difficulty: Moderate Learning Level: fact Page: 71 145. There is a clear trend, in dealing with corporate misconduct, toward a) more lenient sentences. b) smaller fines. c) more involuntary bankruptcies. d) more out-of-court settlements. e) greater personal responsibility for managers. Ans: e AACSB Outcomes: E Degree of Difficulty: Moderate Page: 71 Learning Level: fact 146. Managers who abuse their _______ and/or engage in criminal conduct while at work will increasingly be held accountable. a) rights b) political power c) values d) beliefs e) culture Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 72 147. Which of these reviews all aspects of a firm's operations to pinpoint possible liabilities and other legal problems? a) Environmental audit b) Arbitration c) Legal audit d) Alternative dispute resolution e) SWOT analysis Ans: c AACSB Outcomes: E; R Degree of Difficulty: Easy Learning Level: fact Page: 72 148. Robert is an executive at Rockhard Cement Inc., and he wants to know how he could become more aware of possible legal problems for the firm. What technique should you recommend? a) Coalition building b) Alternative dispute resolution c) PACs d) A legal audit e) Indirect lobbying Ans: d AACSB Outcomes: A; E Degree of Difficulty: Hard Learning Level: appl Page: 72 149. What do the various alternative dispute resolution methods, such as mediation and arbitration, have in common? a) A binding decision by third party b) High cost c) Legally questionable d) Out-of-court settlements e) Not available to profit-seeking businesses Ans: d AACSB Outcomes: E; R Degree of Difficulty: Hard Learning Level: fact Page: 72 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 65 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 150. Caroline, a consumer who agrees to have a third-party arbitrator hear a disputed insurance claim with Risky Shift Insurance Company, should expect a) the process to take more than two years. b) a binding decision. c) help in working toward a negotiated agreement. d) referral to a higher court e) referral to a mediator. Ans: b AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 72 151. Which of these is the study of how scarce resources are used to create wealth and how that wealth is distributed? a) Ecology b) Management c) Sociology d) Finance e) Economics Ans: e AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 72 152. How did researchers recently sum up the state of U.S. high school students' knowledge of economics and finance? a) Bad and getting worse b) Significantly improved c) Impossible to assess d) Approaching world-class e) Dismal but improving Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 72 153. Jobs will be most plentiful in ________, the fastest-growing segment of the U.S. economy between 2004 and 2014. a) small-scale manufacturing b) large-scale manufacturing c) service-providing industries d) government services e) not-for-profit organizations Ans: c AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 72 154. Business cycles have predictable _______ but variable _______. a) structures; timing b) impact; structures c) outcomes; inputs d) effects; phases e) timing; impacts Ans: a AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 73 155. What is the up-and-down movement of an economy's ability to generate wealth? a) The stock exchange b) The business cycle c) Economic development d) Financing e) Economic forecasting Ans: b AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 73 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 66 156. Employment and wages usually rise during the ______ phase of the business cycle. a) trough b) retraction c) innovation d) recession e) expansion Ans: e AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 73 157. _______ is everything when it comes to making good business-cycle-sensitive decisions. a) Innovation b) Timing c) Lobbying d) Luck e) Spending Ans: b AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 73 158. Which approach do experts recommend that managers use when employing forecasts to make businesscycle-sensitive decisions? a) Administrative b) Global c) Consensus d) Divide-and-conquer e) Average Ans: c AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 74 159. According to economists, Americans who work for foreign-owned companies can expect a) to be laid off withing 18 months. b) to work about twice as hard as they would work for an American firm. c) nearly 4 percent lower pay than those who work for U.S. companies receive. d) about 10 percent higher pay that those who work for U.S. companies receive. e) a lifetime employment contract. Ans: d AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 75 160. Generally speaking, the global economy has raised ________ and lowered ________. a) financial standards; human tolerance b) the cost of capital; prices c) quality standards; wage standards d) wages; tariff barriers e) wages; protectionism Ans: c AACSB Outcomes: D; R Degree of Difficulty: Hard Learning Level: fact Page: 75 161. Which process is defined as the systematic development and practical application of a new idea? a) Innovation b) Technology c) Copyrighting d) Licensing e) Creativity Ans: a AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 77 162. Which of the following terms refers to the tools and ideas available for extending the natural physical and mental reach of humankind? a) Technology b) Abstract knowledge c) Abilities d) Science e) Skills Ans: a AACSB Outcomes: R; T Degree of Difficulty: Easy Learning Level: fact Page: 76 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 67 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 163. _______ is the quest for more or less abstract knowledge, whereas _______ is the application of organized knowledge to help solve problems in our society. a) Science; technology b) Experimentation; science c) Science; abilities d) Skill; technology e) Technology; science Ans: a AACSB Outcomes: R; T Degree of Difficulty: Moderate Learning Level: fact Page: 76 164. We are said to be moving into the ________age and away from the __________ age. a) micro; macro b) industrial; enlightenment c) information; space d) information; industrial e) post-industrial; virtual reality Ans: d AACSB Outcomes: R; T Degree of Difficulty: Moderate Learning Level: fact Page: 76 165. Which of these is a stage in the three-step innovation process? a) Inspiration b) Product technology c) Parallel engineering d) Team assignments e) Review and redesign Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Page: 77 Learning Level: fact 166. When Bright Technologies develops a working prototype for a new product, it has taken which step in the three-step innovation process? a) Conceptual b) Production technology c) Product technology d) Exploitation e) Differentiation Ans: c AACSB Outcomes: A; T Degree of Difficulty: Hard Learning Level: appl Page: 77 167. George works in the research and development department of an automobile manufacturer. His manager asked him to help design a new hydrogen-powered car. George will be in charge of drawing up the final blueprints. Which stage of the innovation process does this involve? a) Brainstorming b) Conceptualization c) Prototype development d) Production process development e) Control Ans: b AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 77 168. Maria is a manager at a home appliance company. Her team designed a new washing machine and has just finished building the initial model. It is now ready for testing. What stage of the innovation process does this involve? a) Brainstorming b) Production development c) Product technology d) Conceptualization e) Control Ans: c AACSB Outcomes: A; T Degree of Difficulty: Hard Learning Level: appl Page: 77 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 68 169. What sort of technology, according to the three-step innovation process, is involved when Evotech Inc. turns a working model into a financially successful new product? a) Transfer b) Production c) Application d) Exploitation e) Product Ans: b AACSB Outcomes: R; T Degree of Difficulty: Hard Learning Level: appl Page: 77 170. Which of these terms refers to the time it takes to turn a new idea into a product that satisfies consumer demand? a) Demand slack b) Developmental decay c) Creativity lapse d) Innovation drag e) Innovation lag Ans: e AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 78 171. Innovative companies generally rely on a) employees and government. b) creativity and copying. c) competitors and empowerment. d) mechanistic strategy and luck. e) goal setting and empowerment. Ans: e AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 78 172. Concurrent engineering can best be described as a) a one-person product development cycle. b) continuous improvement. c) functional specialization. d) a team approach to product design. e) garbage in, garbage out. Ans: d AACSB Outcomes: R Degree of Difficulty: Hard Learning Level: fact Page: 78 173. Juan is a highly motivated and creative employee at Modell Industries. He loves overcoming challenges but has a high need for security. What should Juan do? a) Hire an administrative assistant. b) Take more vacation time. c) Ask for a transfer. d) Become an intrapreneur. e) Become an entrepreneur. Ans: d AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 79 174. Which term describes an employee in a large company who takes personal responsibility for pushing an innovation through the organization? a) Entrepreneur b) Intrapreneur c) Concurrent engineer d) Contingent worker e) Innovation advocate Ans: b AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 78 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 69 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 175. Gifford Pinchot calls intrapreneurs a) inside-out thinkers. b) frustrated entrepreneurs. c) restless souls. d) dreamers who do. e) idea machines. Ans: d AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 78-79 176. According to experts, an organization can foster intrapreneurship through all of these except a) focusing on results and teamwork. b) rewarding innovation and risk taking. c) tolerating and learning from mistakes. d) putting all research and development people in a single location.. e) remaining flexible and change-oriented. Ans: d AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 79 Use the following to answer questions 177-180: Griffin's Florists, Inc. Griffin's Florists, a rapidly growing company in the floral industry, recently hired Stewey as its new CEO. Stewey is a progressive manager who is keen on obtaining information about the changing environment and incorporating these changes to help position the company for the twenty-first century. 177. In terms of demographics, what should Stewey know about the new U.S. workforce? a) It is becoming more and more dominated by white males. b) It is shrinking. c) It is becoming less diverse. d) It includes more part-timers. e) It is growing older. Ans: e AACSB Outcomes: A; D Degree of Difficulty: Moderate Learning Level: appl Page: 62 178. Stewey is worried that hiring older workers will reduce productivity in his company. What fact would you mention to him to regarding his concerns? a) Research shows that productivity is tied to age, not health. b) Research shows that productivity does not decline with age. c) Older workers are less readily distracted than younger workers. d) Research shows that older workers are less willing to learn new jobs. e) The costs of health insurance increase with age. Ans: b AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: appl Page: 63 179. What should Stewey know about older employees in the workforce? a) They are less productive than the average worker. b) They are more costly to employ. c) They have lower accident rates. d) They tend to complain too much. e) They have higher absenteeism rates. Ans: c AACSB Outcomes: D; R Degree of Difficulty: Moderate Page: 63 Learning Level: appl 180. Stewey should know that the male-female pay gap in the United States a) is gone. b) still exists and that white males get twice the pay of white females. c) has actually grown despite the Equal Pay Act. d) is still large and persistent. e) exists but is very small. Ans: d AACSB Outcomes: D; R Degree of Difficulty: Easy Learning Level: appl Page: 65 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology 70 Use the following to answer questions 181-185: Managers: Sherry and Steve Sherry and Steve are managers of two different departments at MEDs-Direct.com, an online pharmacy that targets the generation X population. The company is facing increased government scrutiny, especially with uncertainties surrounding online drug distribution, online sales tax, consumer protection regulation, and so on. Whereas Sherry believes in defending the status quo through lawsuits and lobbying, Steve says MEDsDirect.com should improve its performance to avoid government intervention. 181. If Sherry and Steve want to identify, evaluate, and respond to relevant and important social and political changes, they need to use a) political counseling. b) social science research. c) issues management. d) legal auditing. e) power and domination. Ans: c AACSB Outcomes: A; D Degree of Difficulty: Hard Learning Level: appl Page: 69 182. Sherry occupies the _______ position on the political response continuum. a) anticipatory b) proactive c) wait and watch d) neutral e) reactive Ans: e AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 69 183. What position would Steve be described as occupying on the political response continuum? a) Wait and watch b) Overzealous c) Reactive d) Proactive e) Neutral Ans: d AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 69 184. Steve and Sherry, according to the text discussion, can employ all of these political strategies except a) indirect lobbying. b) coalition building. c) campaign financing. d) filing a class action lawsuit. e) lobbying. Ans: d AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: appl Page: 70 185. If MEDs-Direct.com partners with other online organizations to support the effort to block tax legislation for online sales, it will employ a strategy of a) advocacy advertising. b) lobbying. c) coalition building. d) campaign financing. e) indirect lobbying. Ans: c AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 70 186. Discuss the demographics of the "new workforce." Ans: The U.S. workforce demonstrates the following trends: It is getting larger--the labor force is predicted to grow at a faster rate than the national population. It is increasingly female--employment opportunities for both men and women will grow, but at a faster rate for women. It is getting more racially and ethnically diverse--Hispanics/Latinos have replaced African Americans as the second-largest segment. It is getting older--the median age of employees will continue to grow, with the most vigorous growth in This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 71 Chapter 3: The Changing Environment of Management: Diversity, Global Economy, and Technology the 55-and-older group. AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 61-62 187. Identify five myths about older workers and cite research evidence refuting them. Ans: Myth 1: Older workers are less productive than the average worker. Fact: Research shows that productivity does not decline with a worker's age. Myth 2: The costs of employee benefits outweigh any possible gain from hiring older workers. Fact: Health insurance costs increase with age, but most other fringe benefits do not since they are tied to length of service and level of salary. Myth 3: Older workers are prone to frequent absences because of age-related sickness. Fact: Data show that workers age 65 and older have attendance records that are equal to or better than those of most other age groups of workers. Myth 4: Older workers have an unacceptably high rate of accidents at work. Fact: Data show that older workers account for only 9.7 percent of all workplace injuries, even though they make up 13.6 percent of the labor force. Myth 5: Older workers are unwilling to learn new jobs and are inflexible about the hours they will work. Fact: It depends on the individual, just as in other age groups. AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 63 188. How would you respond to a manager who made the following statement: "Managing diversity is equal employment opportunity, only with a fancy new name"? Ans: Not true--valuing diversity extends EEO by fostering organizational cultures that tap the full potential of all employees. EEO can help women and minorities get fair access to jobs, but valuing diversity programs are needed to help them feel like valuable members of the organization. White males also have lots of individual differences that need to be valued and accommodated in the workplace. We need to move beyond tolerating individual differences to appreciating and valuing those differences. Anything short of that will unnecessarily waste valuable human resources. AACSB Outcomes: A; D Degree of Difficulty: Hard Learning Level: appl Page: 67 189. If managers can't stay out of politics, what should they do? Ans: Managers are being increasingly politicized by competing demands made on their organizations. Thus managers should engage in issiues management to avoid being surprised by political forces. This is an ongoing process of identifying, evaluating, and responding to relevant social and political issues. They also need to be more proactive relative to campaign financing, lobbying, coalition building, and indirect lobbying. AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: appl Page: 6970 190. Why is the global economy a personal matter? Ans: As we move toward a single global marketplace, with the WTO and sweeping trade agreements such as NAFTA, any given employee could end up working for a foreign-owned company. Also, global competition is raising quality standards and lowering wage standards worldwide. AACSB Outcomes: D; R Degree of Difficulty: Moderate Learning Level: fact Page: 74-75 191. Why does it take more than a good idea to be innovative? Ans: A good idea actually is only the first step in the three-step innovation process. The new idea needs to be translated into a working prototype (called product technology) and then produced effectively and efficiently in profitable quantities (called production technology). The time it takes to turn a good idea into satisfied demand (and, it is hoped, profits) is called innovation lag. Good ideas without follow-up are practically worthless. AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 77-78 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. CHAPTER 1 Managers and Entrepreneurs 1. T F Fortunately, through conducting over 1,000 studies during the past 50 years, leadership scholars have produced a clear profile of an ideal leader. Ans: False AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 3 2. T F Drawing on the physician role models of the youth, Vasella built an entirely new Novartis culture centered on compassion, competence, and competition. Ans: True AACSB Outcomes: D; E Degree of Difficulty: Hard Learning Level: fact Page: 4 3. T F Unfortunately, Novartis's new compassion culture has resulted in the company's downfall. Ans: False AACSB Outcomes: A Degree of Difficulty: Moderate Learning Level: fact Page: 4 4. T F Speed is the only certainty in today's climate. Ans: False AACSB Outcomes: A Degree of Difficulty: Easy Learning Level: fact Page: 5 5. T F In the battle to stay competitive, the quality of products and services is the driving force. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 5 6. T F Without learning and continuous improvement, true economic progress for individuals and organizations cannot be achieved. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 5 7. T F Management is the process of working with others, not through others, to achieve organizational objectives. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 5 8. T F Central to the management process is the effective and efficient use of limited resources. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 5 9. T F Management, above all else, is a political process. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Page: 5 Learning Level: fact 10. T F Those who have not lived up to their peers' and superiors' high expectations are derailed managers. Ans: True AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 6 11. T F Mismanagement of funds was the number one problem in the derailed managers study. Ans: False AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact 12. T F An objective is a target to be strived for and attained. Ans: True AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 6 Page: 6 13. T F Always required for organizational objectives or goals is collective action. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 6 14. T F Without organizational objectives, the management process would be aimless and wasteful. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 2 Chapter 1: Managers and Entrepreneurs Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Page: 7 15. 16. T F Achieving a stated objective necessarily involves efficiency. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Page: 7 Learning Level: fact Learning Level: fact T F The amount of resources used is irrelevant when calculating efficiency. Ans: False AACSB Outcomes: A Degree of Difficulty: Easy Learning Level: fact Page: 7 17. T F When too much emphasis is placed on either effectiveness or efficiency, mismanagement can occur. Ans: True AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 7 18. T F When organizations waste resources, they are efficient but not effective. Ans: False AACSB Outcomes: R Degree of Difficulty: Moderate Learning Level: fact Page: 7 19. T F The United States, based on its population, uses less than its share of global resources. Ans: False AACSB Outcomes: A Degree of Difficulty: Hard Learning Level: fact Page: 8 20. T F Chemistry and management, because of their common focus on resources, are closely related. Ans: False AACSB Outcomes: R Degree of Difficulty: Easy Learning Level: fact Page: 8 21. T F The study of how limited resources are di