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Becoming a Master Manager, 5th edition Test Bank
Module 2:
Establishing and Maintaining Stability and Continuity
Multiple Choice Questions
Establishing and Maintaining Stability and Continuity
[Note: Some of the questions in this first overarching set require students to recall material
presented in the introductory chapter of the text, The Competing Values Approach to
Management, pp. 1-35.]
1. The action imperative associated with the internal process model is
a. Compete
b. Control
c. Create
d. Collaborate
e. Conform
Ans: B
Response: See page 108
Level: Easy
2. The action imperative that appears diagonally opposite of the internal process model quadrant
in the competing values framework is
a. Compete
b. Control
c. Create
d. Collaborate
e. Conform
Ans: C
Response: See page 108 (shown in module graphic)
Level: Medium
3. The management model that appears diagonally opposite of the internal process model
quadrant in the competing values framework is
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Module 2: Control – Stability and Continuity
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a. The rational goal model
b. The bureaucratic model
c. The open systems model
d. The human relations model
e. The Theory X model
Ans: C
Response: See page 13 (refers back to Introduction of the CVF)
Level: Easy
4. What are three competencies typically associated with the internal process model?
a. Managing projects, managing across functions, mentoring and developing others
b. Monitoring individual performance, encouraging compliance, organizing
information flows
c. Developing and communicating a vision, setting goals and objectives, designing
and organizing
d. Developing new ideas for projects, managing supplier relationships,
communicating effectively
e. Building and maintaining a power base, negotiating agreement and commitment,
presenting ideas
Ans: B
Response: See page 109
Level: Medium
5. What do the competencies associated with the internal process model typically focus on?
a. Having a caring empathetic orientation, exhibiting helpful, considerate,
sensitive, approachable, open, and fair behaviors.
b. Encouraging collective effort, building cohesion and morale, and managing
interpersonal conflict.
c. Creating continuity and stability, making sure that information flows
smoothly, ensuring that the necessary resources are available for activities
d. Establishing a clear direction for the organization, providing guidance so
individuals can help the organization achieve its goals
e. Reducing friction among individuals, work groups, and work units.
Ans: C
Response: See page 109
Level: Easy
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6. The effectiveness criteria associated with the internal process model is
a. Adaptability and external support
b. Stability and continuity
c. Commitment, cohesion, and morale
d. Growth and change
e. Productivity and profit
Ans: B
Response: See page 108
Level: Easy
7. The means-ends theory associated with the internal process model is
a. Routinization leads to stability
b. Involvement results in commitment
c. Continual adaptation and innovation lead to acquiring and maintaining external resources
d. Clear direction leads to productive outcomes
e. Cost control leads to growth
Ans: A
Response: See page 108
Level: Easy
8. The internal process model emphasizes _____________ while the human relations quadrant
emphasizes ________________.
a. Participation, conflict resolution, and consensus building;
Goal clarification, rational analysis, and action taking
b. Goal clarification, rational analysis, and action taking;
Political adaptation, creative problem solving, innovation, and change management
c. Defining responsibility, measurement, and documentation;
Political adaptation, creative problem solving, innovation, and change management
d. Political adaptation, creative problem solving, innovation, and change management;
Participation, conflict resolution, and consensus building
e. Defining responsibility, measurement, and documentation;
Participation, conflict resolution, and consensus building
Ans: E
Response: See page 108 (student should also recall material from introduction and Module 1)
Level: Medium
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9. Consistent with a hierarchical culture and Weber’s ideas about bureaucracy, the internal
process model focuses on measuring and documenting performance as the basis for
_______________ rather than on ______________.
a. Promotions; seniority
b. Promotions; personal relationships
c. Team assignments, credentials such as academic degrees or certifications
d. All of the above
e. None of the above
Ans: D
Response: See page 7
Level: Difficult
10. Which of the following is NOT a key paradox that managers often face when they try to
maintain tight controls in the organization?
a. Leaders who exert tight controls are often more effective at higher levels of the
organization than at lower levels.
b. Tight controls and rules to improve organizational effectiveness can become impediments
to individual performance.
c. By stifling creativity, tight controls can result in lower profits which then reduces that
ability of the organization to survive
d. Employees who are frustrated by tight controls may choose to leave the organization,
reducing stability
e. Tight controls can make it difficult to serve customers efficiently because requests must
be passed up the chain of command
Ans: A
Response: See pages 108-109
Level: Medium
Module 2, Competency 1: Organizing Information Flows
11. What is the major information problem confronting managers?
a. Information coming in too slowly
b. Information scarcity
c. Information coming in too fast
d. Too much irrelevant information
e. Not enough information to make decisions
Ans: D
Response: See page 110
Level: Medium
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12. Which of the following is true about data and information?
a. Information necessarily includes data, but data may not provide information.
b. Data reduces uncertainty, but information does not reduce uncertainty.
c. Managers have too little data and too much information.
d. Unlike information, data can be represented numerically or graphically, but not verbally.
e. Unlike data, information can be represented numerically or graphically, but not verbally.
Ans: A
Response: See page 110
Level: Medium
13. What does TRAF stand for in reference to managing information overload?
a. Toss, refer, act, file
b. Touch, react, answer, finish
c. Toss, refer, answer, finish
d. Touch, reference, act, file
e. Teach, repeat, answer, and file
Ans: A
Response: See page 111
Level: Easy
14. What should you do with papers that require your personal action according to the TRAF
system?
a. Throw them away
b. Forward them to people who should act upon them
c. Put them into an action box or folder
d. Put them into a box labeled “file”
e. File them in the appropriate filing cabinet
Ans: C
Response: See page 112
Level: Easy
15. In addition to the increased amount of information that managers receive today, what else has
increased the problem of information overload for managers?
a. Increasing diversity in the workplace
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b. Increasing globalization
c. The elimination of traditional communication systems as new forms of communication
are implemented.
d. Decreasing attention spans.
e. The elimination of assistants for many managerial positions
Ans: E
Response: See page 111
Level: Medium
16. According to personal efficiency expert Stephanie Winston, when reading a document takes
more than five minutes, a manager should
a. Toss the document
b. Ask someone else to read and summarize the document
c. File the document for future reference
d. Put the papers into an action folder to be addressed in the near future
e. Read the document and then take the necessary follow-up action
Ans: D,
Response: See pages 112-113
Level: Medium
17. When prioritizing tasks, what two characteristics are important for you to identify according
to Steven Covey?
a. Whether the task is internally- or externally-focused and how urgent the task is
b. How important the task is and whether someone else is available to complete the task
c. How urgent it is to act on the task and how important the task is
d. How urgent the task is and whether someone else is available to complete the task
e. How long the task will take to complete and how important the task is
Ans: C
Response: See page 113
Level: Easy
18. When using the Time Management Matrix for prioritizing tasks, which types of tasks should
be assigned the important but not urgent category?
a. Tasks focused on pressing problems, deadline-driven tasks, and crises
b. Tasks focused on preventing future problems, recognizing new opportunities, building
relationships, and improving production capability
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c. Tasks that require reading such as checking email, analyzing reports, and preparing for
presentations
d. Tasks that require writing, such as preparing reports and responding to written requests
e. Tasks that require working with others such as meetings, telephone calls, and
presentations
Ans: B
Response: See page 113
Level: Medium
19. Which one of the paradoxes below is associated with information overload?
a. People don’t want to be overwhelmed with unnecessary information and don’t want to
receive unsolicited emails.
b. People don’t want to participate in meetings and don’t want to be overwhelmed with
unnecessary information.
c. People want to be informed about what is happening in the organization and want to have
access to multiple sources of information.
d. People don’t want to be overwhelmed with unnecessary information and don’t want to be
uninformed about what is happening in the organization.
e. People want to use only one method of communication and want to be connected to
everyone in the organization.
Ans: D
Response: See page 114
Level: Medium
20. When considering whether or not to forward an email to someone, what should be your
primary consideration?
a. How forwarding the email will make you look to others
b. How frequently you see the recipient
c. How frequently the recipient forwards messages to you
d. Whether the recipient is likely to respond to you in a timely fashion
e. What the recipient will do with the email when they receive it.
Ans: E
Response: See page 114
Level: Easy
21. Which of the following is NOT a component of the OABC method for composing email
messages
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a. Opening
b. Audience set
c. Body
d. Closing
e. Agenda
Ans: B
Response: See page 114
Level: Easy
22. Which component of the OABC method for composing email is described as an outline or
map of what your message is about?
a. Agenda
b. Action Items
c. Audience set
d. Body
e. Opening
Ans: A
Response: See page 115
Level: Easy
23. Which component of the OABC method for composing email is described as the “business”
message itself, expressed in concrete and simple terms?
a. Agenda
b. Action items
c. Audience set
d. Body
e. Opening
Ans: D
Response: See page 115
Level: Easy
24. When leaving a voice mail, why is it helpful to give your name at the beginning of the
message rather than at the end (as is more common with written messages)?
a. Because you may forget to leave your name at the end of your message
b. Because a letter is a less formal communication medium
c. Because it quickly puts your message in context for your listener
d. Because it helps the listener prioritize your call.
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e. Because it lets your listener know that an important person is calling
Ans: C
Response: See page 114
Level: Medium
25. Which of the following is TRUE about face-to-face communication?
a. Video-conferencing can replace all aspects of face-to-face communication.
b. Face to face meetings are still necessary
c. Teams perform just as well whether or not they ever have any face-to-face meetings.
d. If they are limited in the number times they can meet face to face, teams should save face
to face meetings for the end of the project.
e. It is easier to convey difficult emotions with email than with face-to-face communication.
Ans: B
Response: See pages 116-117
Level: Medium
26. What is the most important reason to know your audience when deciding how to
communicate with a particular individual?
a. Different people are more receptive and responsive to different types of communication
b. Some people rarely check their email
c. Some people never delete old voice mails
d. Some people save all their emails which might cause problems later if anyone questions
your judgment about a decision
e. New technologies are harder to use for older employees
Ans: A
Response: See pages 115-116
Level: Medium
27. When used in a “chat” message, what does the abbreviation “O” mean.
a. Over and out
b. Opponent in a gambling match
c. Hugs from the sender
d. All of the above
e. It is not possible to say without knowing the context of the message
Ans: E
Response: See page 116
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Level: Easy
28. What is the Human Moment?
a. Encounters in which people are physically in the same room or place and focus their
emotional and mental attention
b. Group of members who are geographically dispersed meet via video conferencing
c. When managers keep in close contact with their employees via email, voicemail, and
video conferencing
d. When team members share stories about their lives outside of work.
e. All of the above are example of human moments.
Ans: A
Response: See pages 116-117
Level: Easy
Module 2, Competency 2: Working and Managing Across Functions
29. At the beginning of the competency, “Working and Managing Across Functions,” you were
asked to complete an assessment related to “mapping your organization” that asked you to
obtain a copy of the organizational chart for your employer or school. What information can
be found on an organizational chart?
a. Information about formal reporting relationships between people in the organizations
b. Information about where decisions are made in the organization
c. Information about how long it takes for decisions to be made in the organization
d. Information about formal reporting relationships between positions in the organization
e. Information about informal reporting relationships among employees in the organization
Ans: D
Response: See page 121; note: Some students may argue that A is also correct; remind them that
the organizational chart is about positions, not people.
Level: Difficult
30. Which of the following describes cross-functional teams?
a. They are made up of specialists from different functional areas.
b. They have responsibility for managing the work process, purchasing, handling quality
issues, and hiring and firing members.
c. They are made up of specialists from across a single functional area.
d. All of the above describe cross-functional teams.
e. None of the above describe cross-functional teams.
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Ans: A
Response: See page 121
Level: Medium
31. Cross-functional teams were first encouraged as a way to help U.S. companies be more
successful in the global economy more than 20 years ago. Since that time, which of the
following best describes what researchers have learned about cross-functional teams?
a. Cross functional teams are almost always beneficial because by increasing the amount of
functional diversity on the team, better solutions can be obtained.
b. Cross functional teams are most beneficial when external communication increases as a
result of having members with diverse backgrounds, areas of expertise, and different
external networks of information.
c. Cross functional teams are least beneficial when external communication increases
because this distracts members from the primary task of the team.
d. Cross functional teams were common in the 1990s but their use in organization has fallen
as organizations realized that they were not a panacea.
e. Cross-functional teams are rarely beneficial because the diversity of functional
backgrounds and expertise makes it difficult for members to communicate effectively and
increases conflict.
Ans: B
Response: See page 121
Level: Medium
32. Cross-functional teams have become more popular over time because
a. New technologies allow work to be done around the globe more economically
b. Changes in the external environment require that different types of expertise at different
times, so it is important to use cross-functional teams that can be formed and disbanded
rapidly, rather than creating ongoing workgroups.
c. Integration and coordination is needed throughout the organization, which is facilitated
by having team members from different functional areas
d. All of the above.
e. None of the above.
Ans: D
Response: See page 121
Level: Easy
33. Consistent with the principles of Adam Smith and Henri Fayol, differentiation has
traditionally been accomplished by
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a. Paying individuals different amounts based on their expertise
b. Creating specialized jobs and work units that are then organized hierarchically
c. Hiring individuals who have a variety of different backgrounds
d. Increasing the efficiency of work processes
e. Subordinating individual interests to the interests of the organization
Ans: B
Response: See page 122
Level: Easy
34. The primary goal of differentiation, according to Adam Smith is to
a. Increase efficiency
b. Encourage diversity in hiring
c. Make work more interesting for employees
d. Give managers an opportunity to learn new things
e. Ensure that the organization has sufficient numbers of qualified workers
Ans: A
Response: See page 122
Level: Easy
35. How is integration primarily accomplished in an organization that is organized into different
functional units?
a. With regular inspections by managers of employee work habits.
b. With formal cross-functional teams and liaison officers
c. With informal relationships among organizational members
d. With standardized processes and procedures that are inherent in the organizational
hierarchy.
e. Integration is not needed in companies organized by functional units
Ans: D
Response: See page 122
Level: Difficult
36. Several paradoxes result when using cross-functional teams. One key paradox that is likely to
have a major impact on employee motivation is that organizations need to
a. Ensure that employees are creative and are still working within organizational guidelines.
b. Evaluate and reward individual performance when much of the work of the organization
is being done in teams
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c. Achieve multiple focuses (on product, market, customer, geography, etc.) without
segmenting the organization in a dysfunctional way.
d. All of the above are paradoxes that relate to the use of cross-functional teams.
e. None of the above are paradoxes that relate to the use of cross-functional teams.
Ans: B
Response: See page 123
Level: Medium
37. The decision to use cross functional teams as a way to provide the integration needed in
differentiated organizations is
a. One of the oldest approaches used by organizations
b. A new approach, so we know little about how well it will work
c. Supported by management theory but challenging to implement in practice
d. Easy to implement in practice but not supported by management theory
e. Not really appropriate.
Ans: C
Response: See page 123
Level: Easy
38. Which of the following is a guideline for managing cross-functional teams?
a. Clarify goals and charter and get team buy-in.
b. Change individual members frequently to bring fresh ideas into the team.
c. Keep the group as large as possible.
d. Provide the group with information only as necessary.
e. Use an accommodating approach to conflict within the team.
Ans: A
Response: See pages 124-125
Level: Easy
39. All of the following are guidelines for managing cross–functional teams EXCEPT?
a. Seek to create a critical mass of leadership.
b. Train members in teamwork and process management.
c. Encourage team members to stay within their functional roles.
d. Clarify expectations within and between teams.
e. Get early involvement from all functional areas.
Ans: C
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Response: See pages 124-125
Level: Medium
40. How do you determine the appropriate size for a cross-functional team?
a. Make sure to have one person from each functional unit.
b. Make sure you have a diverse number of perspectives.
c. Keep the team as small as possible with critical functional representation.
d. Make sure all powerful people are members.
e. Keep the team to fewer than eight members.
Ans: C
Response: See page 124
Level: Medium
41. In identifying the right members for a cross-functional team, research by Baker, Cross, and
Wooten found that in addition to having members with the appropriate technical and
interpersonal skills, it was also helpful to have members who
a. Were relatively new to the organization
b. Had extensive experience in the organization
c. Had experience working on cross-functional teams
d. Had little experience working on cross functional teams
e. Were enthusiastic and optimistic and could “charge up” everyone around them
Ans: E
Response: See page 126
Level: Medium
42. The concept of “lift” as proposed by Quinn and Quinn (2009) includes four key thoughts and
feelings that cause people to be uplifted and to lift up people around them. Which of the
following is NOT one of the four key elements of lift?
a. Being purpose-centered
b. Being other-focused
c. Being internally directed
d. Being highly creative
e. Being externally open
Ans: D
Response: See page 126
Level: Easy
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Module 2: Control – Stability and Continuity
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Module 2, Competency 3: Planning and Coordinating Projects
43. Why are project teams becoming more popular?
a. They are task focused
b. They enable companies to use cross-functional teams
c. They are flexible and able to react quickly to change.
d. All of the above are reasons project teams have become popular
e. None of the above are reasons project teams have become popular
Ans: D
Response: See page 130
Level: Easy
43. Which of the following is a characteristic of a project?
a. It has a very general objective
b. It has no clear start and end dates
c. It has unlimited funding
d. It consumes resources
e. It is a repetitive endeavor of the organization
Ans: D
Response: See page 130
Level: Easy
44. As organizations have moved to more project-based activities, research on effective project
management has become more important. What do project management experts like Harold
Kerzner suggest should be the first step in project management?
a. Planning defining the work requirements, scheduling activities, and evaluating risks
b. Closure – verifying that all work has been completed and all paperwork is done
c. Initiation – selecting the best project given limited resources and preparing documents to
sanction the project
d. Monitoring – tracking progress and comparing actual outcomes to predicted outcomes so
that adjustments can be made
e. Execution – negotiating to get the right members for the project team, directing and
managing work, and helping team members improve
Ans: C
Response: See page 130
Level: Easy
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Module 2: Control – Stability and Continuity
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45. What project management tool shows the total project divided into components that can be
measured in terms of time and cost?
a. Statement of work
b. Work breakdown structure
c. Program evaluation and review technique
d. Critical Path Method
e. Human resource matrix
Ans: B
Response: See page 133
Level: Easy
46. Which project management tool shows the flow of tasks associated with a complex project
by showing the interrelationships between activities?
a. Work breakdown structure
b. PERT/CPM
c. Gantt Chart
d. All of the above
e. None of the above
Ans: B
Response: See page 135
Level: Easy
47. What is the critical path in a PERT/CPM diagram?
a. The chain of activities that takes the longest time to proceed through the network
b. The chain of activities that contains the greatest amount of slack
c. The chain of activities that contains the largest number of nodes
d. The chain of activities with the earliest finish time
e. The chain of activities with the fewest nodes
Ans: A
Response: See page 136
Level: Medium
48. Project managers are tasked with achieving project objectives while using resources in the
most efficient way possible. One process that helps them accomplish these two potentially
conflicting goals is
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a. Human resource matrix management
b. Zero-based budgeting
c. PERT/CPM
d. Enterprise Project Management
e. Resource leveling
Ans: E
Response: See page 137
Level: Medium
49. What project management tool is most popular for visually displaying scheduled activities
and showing the dates on which the various project activities are expected to begin and end?
a. Work breakdown structure
b. PERT/CPM
c. Gantt chart
d. Human resource matrix
e. Costed statement of work
Ans: C
Response: See page 138
Level: Easy
50. Which project management tool identifies who is assigned to tasks and what role each
individuals has (primary, secondary, consultant) on each task?
a. Work breakdown structure
b. PERT/CPM
c. Gantt Chart
d. Human resource matrix
e. Tabular work breakdown structure
Ans: D
Response: See page 140
Level: Easy
51. Which resource needs to be monitored during a project?
a. Time
b. People
c. Money
d. All of the above
e. None of the above
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Ans: D
Response: See page 141
Level: Easy
52. When examining a project budget, what is a cost variance?
a. The budgeted cost of work performed (BCWP) during a specific time period
b. The actual cost of work performed (ACWP) during a specific time period
c. The difference between budgeted cost of work performed and actual cost of that work
when it is performed (BCWP-ACWP)
d. The average of the budgeted cost of work performed and actual cost of work performed
e. None of the above
Ans: C
Response: See page 141
Level: Medium
53. What is a schedule variance?
a. The budgeted cost of work performed during a specific time period (BCWP)
b. The budgeted cost of work scheduled during a specific time period (BCWS)
c. The difference between the budged cost of work performed and the budget cost of work
scheduled for a specific time period (BCWP-BCWS)
d. The amount of time by which a project is behind schedule when no slack exists in the
schedule budget
e. The difference between the money spent and the money projected to be spent on a project
Ans: C
Response: See page 141
Level: Medium
54. Many different computer software programs are available to help with project management.
As a result…
a. It is no longer necessary to learn the fundamental concepts upon which those programs
are based and work through examples by hand.
b. Managers who understand the fundamental concepts upon which these programs are
based are able to be more efficient and effective at project management.
c. Project management is no longer an important aspect of managers’ jobs.
d. Managers can be confident that the reports they generate from these software programs
will meet all of their needs.
e. Anyone who can use the software can be a successful project manager.
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Ans: B
Response: See page 132
Level: Easy
Module 2, Competency 4: Measuring and Monitoring Performance
and Quality
55. Although measuring and monitoring performance is crucial to organizational efficiency,
organizations do not always measure things that are relevant to efficiency. In some cases,
these decisions are appropriate, but often they are not. Under what conditions is it
APPROPRIATE to select measures that are NOT relevant to efficiency
a. When the organization is focusing on objective criteria
b. When the organization is measuring highly visible behaviors
c. When the organization is emphasizing other goals
d. A and B but not C
e. A and C but not B
Ans: C
Response: See page 147
Level: Medium
56. The global financial crisis that began in mid-2007 resulted in part because of a failure to
adequately measure what key variables?
a. The ability of borrowers to repay loans and the repayment history of loans originated by
individuals
b. The ability of borrowers to repay loans and the willingness of the FDIC to cover bad
bank loans
c. The repayment history of loans originated by individuals and the willingness of the FDIC
to cover bad bank loans
d. The strength of the housing market and number of new loans being originated
e. The number of new loans being originated and the commissions being paid to loan
originators
Ans: A
Response: See page 148
Level: Difficult
57. Because it is often very difficult and costly to measure the variables that are most closely
linked with critical outcomes, organizations often ….
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a. Substitute qualitative measures for quantitative measures of achievement
b. Substitute surrogate or proxy measures for exact measures of achievement.
c. Substitute complete measures for objective measures of achievement
d. Substitute complete measures for responsive measures of achievement
e. Substitute responsive measures for exact measures of achievement
Ans: B
Response: See page 149
Level: Medium
58. In deciding on performance measures, organizations need to consider which of the
following?
a. The objectivity of the measure
b. The completeness of the measure
c. The responsiveness of the measure
d. All of the above
e. None of the above
Ans: D
Response: See pages 148-149
Level: Easy
59. Proxy measures of outcomes are used
a. To allow independent verification
b. To obtain a complete understanding of outcomes
c. To make inferences about exact measures
d. To provide for responsiveness
e. To eliminate subjectivity
Ans: C
Response: See page 149
Level: Easy
60. The quality of many types of services cannot be accurately measured when the service is
delivered. Which of the following measures would be the BEST for evaluating the quality of
cardiac surgery?
a. Time spent on the surgery
b. Credentials of the doctor performing the surgery
c. Time spent in the hospital after the surgery
d. Number of follow-up visits to the doctor after surgery
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e. Readmissions to the hospital cardiac unit within six weeks of surgery
Ans: E
Response: See pages 149-150
Level: Medium
61. Kaplan and Norton’s “balanced scorecard” includes measures that can be related to three of
the four quadrants of the competing values framework. Which quadrant is NOT included in
the balanced scorecard?
a. Open systems
b. Rational goal
c. Internal process
d. Human relations
e. Contingency theory
Ans: E
Response: See page 150
Level: Easy
62. For stockholders, the best measure of financial organizational effectiveness is…
a. Sustainability
b. Earnings per share
c. Inventory turnover
d. Corporate reputation
e. Six sigma deviations
Ans: B
Response: See page 150
Level: Easy
63. What three areas are included in the “triple bottom” line approach to measuring
organizational performance?
a. Financial performance, environmental performance, and social/ethical performance
b. Environmental performance, social/ethical performance, and customer satisfaction
c. Financial performance, customer satisfaction, and environmental performance
d. Customer satisfaction, employee satisfaction, and community satisfaction
e. Financial performance, debt-to-equity ratios, and new product introductions
Ans: A
Response: See page 150
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Level: Medium
64. To encourage organizations to recognize the importance of corporate social responsibility,
what have organizations such as the United Nations Global Compact attempted to do?
a. Stop the spread of globalization to protect local economies
b. Encourage the adoption of U.S. Generally Accepted Accounting Principles (GAAP)
c. Establish more standardization for social and environmental reporting.
d. Create a network of organizations that serves to oversee company behavior
e. Offer incentives to organizations that report on their social and environmental impacts
Ans: C
Response: See page 151
Level: Medium
65. TQM stands for
a. Total quartile marketing
b. Testing quantities and methods
c. Total quality management
d. Testable quantitative management
e. Tested quality materials
Ans: C
Response: See page 152
Level: Easy
66. Methods for making performance improvements include which of the following?
a. TQM
b. The Baldrige Criteria
c. ISO 9000
d. All of the above
e. None of the above
Ans: D
Response: See pages 152-153
Level: Easy
Module 2, Competency 5: Encouraging and Enabling Compliance
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67. When they are trying to get employees to follow rules, managers…
a. Are unlikely to be successful unless they have the authority to fire employees who do not
comply
b. Are unlikely to be successful unless they have the authority to reward employees who do
comply
c. Have the same amount of influence over individual-level and situational variables
d. Have less influence over individual-level variables than over situational variables
e. Have more influence over individual-level variables than over situational variables
Ans: D
Response: See page 158
Level: Medium
68. Researchers have identified several different triggers that increase the likelihood that
employees will not comply with rules in the workplace. Which of the following is NOT a
common trigger for noncompliance?
a. A manager violating employee trust
b. A failure by the manager to trust his/her employees
c. Rules that are perceived as being unfair
d. Ambiguity about required job performance
e. Reward systems that provide incentives for compliance
Ans: E
Response: See pages 158-160
Level: Easy
69. One of the benefits of aligning compensation and reward systems with the types of behaviors
desired by the organization is that this alignment…
a. Reduces the costs associated with noncompliance
b. Increases the likelihood that that employees will be compliant
c. Reduces the costs associated with compliance
d. Increases the likelihood that instances of noncompliance will be reported by employees
e. Reduces the opportunities for noncompliance
Ans: B
Response: See page 162
Level: Medium
70. When there is ambiguity about appropriate job performance, employees who do not comply
with organizational rules are most likely to claim that…
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a. The rules were unfair and therefore should not be followed
b. The rules were improper and following them would hurt the organization
c. The rules were unclear and therefore the employee is not really responsible
d. There was too much social pressure to permit the employee to follow the rules
e. The manager could not be trusted to treat the employee fairly
Ans: C
Response: See page 159
Level: Easy
71. An organization sends mixed messages about compliance when…
a. A rule exists but there are no consequences for failing to comply with that rule
b. A rule exists and there are negative consequences for noncompliance, but there are
policies in place that make it difficult for employees to follow the rule
c. A rule exists and noncompliance sometimes results in negative consequences
d. All of the above are examples of mixed messages
e. None of the above are examples of mixed messages
Ans: D
Response: See page 159
Level: Easy
72. Destructive deviance is most likely to occur in situations where employees feel that…
a. The organization had done something that justified retaliation by the employee
b. The organization had done nothing to earn the employee’s extra effort
c. The organization was involved in corrupt activities and should be exposed
d. The organization would be unlikely to discover the destructive deviance
e. The organization had been sending mixed messages
Ans: A
Response: See page 160
Level: Medium
73. The concept of positive deviance is used to refer to situations where…
a. There is no cost to the organization when an employee fails to comply with
organizational rules
b. There is no cost to the employee when he fails to comply with organizational rules
c. The situation in question makes not complying with organizational rules the most
ethically appropriate action
d. There is a short term benefit to individuals who do not comply with organizational rules
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e. There is no alternative to not complying with organizational rules
Ans: C
Response: See pages 160-161
Level: Medium
74. An organizations that tries to increase compliance with rules about conserving supplies by
locking the supply closet is using which compliance strategy?
a. Punitive – similar to threatening employees with sticks
b. Preventative – similar to putting hurdles up in front of employees
c. Remunerative – similar to tempting employees with carrots
d. Generative – similar to creating a fast track for employees to follow
e. Cognitive – similar to enlightening employees about the benefits of compliance
Ans: B
Response: See page 162
Level: Medium
75. An organization that gives employees a chance to win a gift certificate for a popular
restaurant every time they submit their expense report within a week of returning from a trip
is using which type of compliance strategy?
a. Punitive – similar to threatening employees with sticks
b. Preventative – similar to putting hurdles up in front of employees
c. Remunerative – similar to tempting employees with carrots
d. Generative – similar to creating a fast track for employees to follow
e. Cognitive – similar to enlightening employees about the benefits of compliance
Ans: C
Response: See page 162
Level: Medium
76. An organization that refuses to reimburse employees for expenses unless their expense report
is submitted within a week of incurring the expenses is using which type of compliance
strategy?
a. Punitive – similar to threatening employees with sticks
b. Preventative – similar to putting hurdles up in front of employees
c. Remunerative – similar to tempting employees with carrots
d. Generative – similar to creating a fast track for employees to follow
e. Cognitive – similar to enlightening employees about the benefits of compliance
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Ans: A
Response: See page 162
Level: Medium
77. An organization that expands its policy to let employees submit their expense reports
electronically, as an alternative to completing a paper report, is using which type of
compliance strategy?
a. Punitive – similar to threatening employees with sticks
b. Preventative – similar to putting hurdles up in front of employees
c. Remunerative – similar to tempting employees with carrots
d. Generative – similar to creating a fast track for employees to follow
e. Cognitive – similar to enlightening employees about the benefits of compliance
Ans: D
Response: See page 162
Level: Medium
78. When organizations want to make significant changes in employee behavior, it is often
necessary to alter…
a. Deeply held assumptions, beliefs, and values
b. Organizational rhetoric
c. Performance evaluation and reward systems
d. All of the above
e. A and C, but not B
Ans: D
Response: See page 163
Level: Medium
79. One of the key paradoxes of control in organizations is that …
a. Effective compliance programs include multiple types of strategies
b. Organizations that do not use any controls often outperform organizations that implement
controls
c. Tight control leads to higher profitability because of lower costs typically result when
tight controls are in place
d. Tight control helps employees feel comfortable by reducing ambiguity which in turn
reduces noncompliance with organizational rules
e. Trying to control employees too tightly can increase the likelihood that employees will
look for ways to avoid compliance
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Ans: E
Response: See page 163
Level: Medium
80. In recent years, the term “compliance” has come to be associated with…
a. Obeying U.S. federal laws and regulations
b. Acting in a socially responsible way and being accountable for organizational activities
c. Conserving environmental resources and recycling waste
d. Engaging in philanthropy and corporate volunteerism
e. Obeying international laws and complying with international treaties
Ans: A
Response: See page 165
Level: Easy
81. U.S. federal sentencing guidelines for organizations apply to criminal conduct by…
a. Corporations
b. Partnerships
c. Non-profit organizations
d. Unions
e. All of the above
Ans: E
Response: See page 166
Level: Easy
82. U.S. federal sentencing guidelines for organizations do NOT apply to criminal conduct by…
a. Small corporations (under 50 employees)
b. Trusts
c. Chief executive officers
d. Pension funds
e. U.S. federal sentencing guidelines for organizations apply to all of the above
Ans: C
Response: See page 166
Level: Medium
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83. In 2004, the U.S. federal sentencing guidelines for organizations were revised in an effort
to…
a. Reduce the costs of creating and maintaining compliance programs
b. Increase the accountability of boards of directors and top executives
c. Reduce punishments for companies with compliance programs
d. Provide subsidies for organizations to create compliance programs
e. Carve out special protections for banking and financial institutions
Ans: B
Response: See page 166
Level: Medium
84. The guidelines for compliance and ethics programs were designed to provide…
a. Flexibility and independence by organizations so their programs could be designed to suit
their particular circumstances
b. Rigid rules and procedures for organizations so programs would be designed consistently
and could be reviewed more easily
c. Precise details for implementation to save organizations time and money when
implementing compliance and ethics programs
d. Opportunities for individuals seeking careers in compliance and ethics to become
certified by the federal government
e. A clear set of steps organizations can follow to ensure that they will not be the victim of
criminal behavior by employees
Ans: A
Response: See page 167
Level: Medium
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Module 2:
Establishing and Maintaining Stability and Continuity
Essay Questions
M2 -1. What competencies does the internal process model emphasize? Why are these
competencies especially relevant to the internal process model? (Response: See
page109)
Sample Response: The competencies emphasized in the internal process model
include (1) organizing information flows, (2) working and managing across
functions, (3) planning and coordinating projects; (4) measuring and monitoring
performance and quality, and (5) encouraging and enabling compliance.
These competencies are particularly relevant to the internal process model
because the primary goal of that model is to establish and maintain stability and
continuity and the means-ends theory of the internal relations model assumes that
that routinization will result in stability. All five of these competencies are helpful
for creating consistency in organizational processes related to achieving
organizational goals.
The internal process model emphasizes the importance having strong
organizational and project management skills. The focus here is less on working
effectively with people (as in the human relations model) and more on creating
effective and efficient ways to accomplish tasks. Effective managers need to be
able to understand both the details and how those details fit into the big picture.
They also have to make sure that day-to-day work is accomplished at the same
time that special projects are underway. Another key issue for managers is
balancing the need for following existing rules and standards with the need for
establishing more effective rules and standards.
M2C1: Organizing Information Flows
M2C1 -1. Evaluate whether you suffer from information overload by examining five
(or specify a smaller number) symptoms discussed in the text and giving
specific examples from your life. (Response: See page111)
Note: Students should evaluate each of the symptoms identified in the text,
indicate the extent to which these symptoms apply to their lives, and provide some
conclusion about whether they suffer from information overload. The question
can be expanded by asking students to discuss why they are so overloaded with
information and/or how they can reduce the negative impact of information
overload.
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Sample Response: Five symptoms of information overload are: 1. Chronically
talking about not keeping up with what’s going on around you. 2. Nodding your
head knowingly when someone mentions a book, artist, or news story with which
you are actually unfamiliar. 3. Assuming you must read every e-mail you receive,
regardless of who it is from. 4. Thinking that the person next to you understands
everything and you don’t. 5. Calling something that you don’t understand
“information.”
I seem to suffer from some, but not all of these symptoms. I do tend to talk about
not being able to keep up with the news and feel guilty about not reading the
newspaper on a more regular basis. I do read The Week, which helps with this
problem somewhat. I confess that I also sometimes pretend to know about
something that I’m really not familiar with, but I realize this is a very foolish
behavior and I am trying to break that habit. I do not feel I have to read all the
emails I get and don’t worry that other people know everything. I don’t tend to
label things as information or data, but do think I sometimes assume some things
are important without really understanding them.
M2C1-2. Describe the TRAF system. Do you use this system? What are the pros and
cons of the system? (Response: See page 111-112)
Sample Response: The TRAF system stands for Toss, Refer, Act, and File. In this
systems, one should Toss papers into wastebaskets if they are not immediately
valuable and Refer messages to other people when appropriate. Action items are
things that take longer than five minutes to do. These items should be put into an
action box or folder, added to a to-do list, prioritized, and then acted upon. We
should file documents by indicating on the document itself the file into which it
should go. It generally saves time if documents go into a “to be filed” box and
filing is done on a periodic basis, rather than every time a piece of paper comes
in that needs to be filed.
Unfortunately, I am not nearly as good at using this system as I should be,
although I think I am improving. I have set up a recycle bin next to my file cabinet
and try to throw things out when I open the mail. Sometimes, however, I tend to
hand on to things because I think I will want to look at them later.
Pros and Cons of the system – One of the best things about this system is that
encourages you to immediately Toss out things that are not truly necessary, which
can help keep papers and email messages more managable. The system is easy to
remember, but not always easy to follow. For example, it is often hard to Toss
paper because people think that they may need it later. It is also often easy to get
sidetracked while going through papers and think that something can be
accomplished in five minutes when it really takes much longer. When items are
put into the Action file, they still need to be prioritized and completed.
Information that is filed may be forgotten.
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M2C1-3 Describe Covey’s Time Management Matrix and what it is used for.
(Response: See page 113)
Sample Response: Covey uses two dimensions to create his time management
matrix which consists of four boxes: Urgent and Important; Not Urgent and
Important; Not Important and Urgent; and Not Important and Not Urgent. This
matrix is used to prioritize action items. Things like crises and deadline-driven
projects are Important and Urgent and need to be top priorities. Things that are
Important but Not Urgent are often activities that will pay off in the long run, like
setting up a good security system to prevent theft, finding new opportunities for
growth, and building relationships. If these types of activities are not done, at
some point they are likely to become Urgent. Things that are Not Important
should be very low priority and may need to be eliminated from the manager’s to
do list. However, some things, such as meetings, may seem unimportant to the
manager but be seen as important to her/his supervisor, so just ignoring those
activities may not be politically smart.
Note: This question can be expanded by asking students to discuss whether some
of the items that Covey lists as “Not important and Not Urgent” like “pleasant
activities” might really be valuable for reducing individual stress which can
improve performance and morale.
M2C1-4. Describe the four elements of a message recommended by the OABC method.
Do these elements change based on your audience or the communication
media? If so, provide an example. If not, explain why there are no
differences. (Response: See page 114-117)
Sample Response: OABC stands for Opening, Agenda, Body, and Closing. Using
this method helps make sure that messages are easy to understand and it is clear
what the recipient needs to do. The Opening sets the tone and identifies the
sender. The Agenda outlines the message. This is especially important when
messages contain multiple issues. The Body should be concrete, simple, and
concise. Don’t overwhelm the reader with details! The Closing reminds the
person what you want them do to (e.g., please respond by May 22) and closes the
message cordially and efficiently.
Although the basic elements do not change, the audience and communication
media may change slightly what is included. For example, in a voice mail it is
critical to state your full name in the Opening . This is generally not needed in an
email because your name is included automatically as part of the message. If you
are communicating with a close friend, you may need to do less to establish a
cordial tone at the beginning and end. For some people, you may want to include
only a single issue in a message because they tend to overlook things in longer
messages.
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M2C1-5. What is meant by “the vanishing human moment?” According to your text,
is this is this a serious problem? Why or why not? (Response: See pages 116-
117)
Sample Response: The “vanishing human moment” refers to the fact that much
work is actually no longer done in face-to-face meetings but is mediated
electronically. The text argues that this is a serious problem because confusion
often results from electronically mediated communication. People are accustomed
to having nonverbal cues that can help convey important information. Without
those cues, we may misinterpret intentions and react negatively, creating a
negative communication spiral.
Note: This question can be modified to ask students for their opinions, rather than
to respond based on the text, which suggests that this is a serious problem. If
students are asked for their opinion, their responses should be evaluated based on
the quality of their argument (the grounds and warrants they provide), not the
particular claim that they make. This topic is a good one for seeking student
opinions because their experiences with electronically mediated communication
are generally very extensive and they may feel that face-to-face communication is
overvalued.
M2C1-6. In contrast to many personal productivity experts who advocate cleaning up
clutter, Eric Abrahamson and David Freemen suggest that there are benefits
to being moderately disorganized. What are the benefits of some degree of
clutter, according to these authors? Are their findings consistent or
inconsistent with the competing values framework? (Response: See page120)
Sample Response: Abrahamson and Freeman argue that moderately
disorganized people (and organizations) benefit from clutter in three ways: they
are more resilient, more creative, and more effective. Their findings are
consistent with the competing values framework which suggests that flexibility is
just as important as control when it comes to being effective.
M2C2: Working and Managing Across Functions
M2C2-1. Assume you have been assigned to manage a cross-functional team. What are
eight guidelines that can help you make sure you and your team are
successful? (Response: See pages124-126)
Note: Students can be asked for fewer guidelines or can be asked to explain
guidelines in more detail, rather than just listing them.
Sample Response: 1. Clarify goals and charter and get team buy-in. 2. Seek to
create a critical mass of leadership. 3. Hold the team and its members
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accountable for performance. 4. Keep cross-functional teams as small as possible
with critical functional representatives. 5. Provide the cross-functional team with
constantly updated and relevant information. 6. Train members in teamwork and
process management. 7. Clarify expectations within and between teams. 8.
Encourage team members to be willing to step out of their role.
M2C2-2. What is the general purpose of cross-functional teams? When are cross-
functional teams appropriate? Identify an issue in your workplace which
could be addressed by a cross-functional work team. Who would be on the
team and why? (Response: See pages 121-126)
Note: Students should identify a specific issue from their workplace and why it
should be addressed by a cross-functional work team. Given their own knowledge
of the organization and the specific issue to be addressed by the team, students
should clearly identify and justify the different functional areas that need to be
represented on the team. In classes where students are not working full time,
students may struggle to come up with an appropriate issue because of their
limited knowledge of the workplace.
Sample Response: In general, cross-functional teams are used to break
boundaries between different functional areas without disrupting the existing
organizational structure. The teams are often formed to respond quickly to
competitive pressures. In my workplace, a cross-functional team could be used to
address the problem of poor production timing. Customers often want products
months before they are available, so we lose sales when we cannot provide those
products. This cross-functional team definitely would need to include
representatives from manufacturing and sales. We might also need to include
someone from finance because changing production timing might require
additional capital expenditures to meet capacity demands.
M2C2-3. Explain the concept of “lift.” Identify the four conditions required to create
lift and the action imperatives that relate to those characteristics. Why is it
important to try to create “lift” when managing cross-functional teams?
(Response: See page 126)
Sample Response: “Lift” is the idea that an individual can have an uplifting,
energizing effect on themselves and on others if that individual is (1) purpose-
centered, consistent with the Compete action imperative; (2) internally-directed,
consistent with the Control action imperative; (3) other focused, consistent with
the Collaborate action imperative; and (4) externally open, consistent with the
Create action imperative. Lift is important when managing cross-functional teams
because it helps provide the energy needed for the team to be effective.
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M2C3: Planning and Coordinating Projects
M2C3-1. Why has project-based work become so common in organizations today?
What are the problems associated with project-based work? Is project-based
work just a fad? Justify your answer. (Response: See page 130
Sample Response: Project-based work has become much more common in
organizations because it provides more flexibility and can result in improved
performance. Changes in the economy, heightened competition, increased
complexity in organizational environments, and rapid technological changes have
all been forces for using more project based work. Project-based work can be
highly focused, can take advantage of cross-functional teams, and can improve the
utilization of resources by facilitating the “borrowing” of resources from within
and outside the organization.
No, project-based work is not just a fad. Evidence to support the continued
importance of project-based work can be found in the forces that are driving
change in the external environment: increasing complexity, technological
advances, and a growing number of competitors from around the globe. These
force are unlikely to go away, therefore organizations will continue to seek more
flexibility to move in new directions quickly. Although there will always be tensions
when using project-based work, improved project planning and monitoring tools
will help reduce problems and the opportunities that arise from project-based work
outweigh the costs.
M2C3-2. Describe the activities and tools used in project planning and monitoring.
[Provide examples of the activities and tools used to plan and monitor a
project based on a project you have worked on recently at work or school. If
there were some activities or tools that you did not use, explain why they
were not used. Based on your experience, do you think the project outcome
would have been better if you had used those tools? Why or why not?]
(Response: See pages 130-143)
Sample Response: Project planning includes defining work requirements,
defining work quality, and defining resources needed. Project monitoring
includes tracking progress, comparing actual to predicted, analyzing the impact,
and making adjustments. A statement of work is a written description of the scope
of work required to complete the project. A work breakdown structure shows the
total project divided into components that can be measured in terms of time and
cost.
Note: Asking students to describe a personal experience with a project, is a good
way to test understanding, but introduces some important issues from the
perspective of grading. Because a student may not have used all of the tools
described in the text, asking for the activities and tools specifically, in addition to
asking for a description of their experience, can help with consistency for grading
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purposes. Asking students to explain why they did not use tools and discuss
whether those tools would have been helpful can also ensure that all students
realize that they need to demonstrate an understanding of planning and
monitoring tools and activities, whether or not they used them in their project.
M2C3-3. What is a PERT/CPM model? [How could a PERT/CPM model be used to
manage a project with which you are currently involved? Describe the first
five tasks to be done and then draw a PERT diagram for those tasks.]
(Response: See pages 135-137)
Sample Response: A PERT/CPM model allows the project manager to see the
flow of tasks associated with a project by showing the interrelationships between
activities. This allows the manager to estimate the necessary to complete the
overall project and to identify critical points where a delay in the completion of a
particular task will cause the overall project to be delayed.
Note: As noted above, asking students to describe a personal experience with a
project, is a good way to test understanding, but introduces some important issues
from the perspective of grading. If students are asked to describe a specific
project (from work, school, community life) and develop a PERT/CPM model to
manage the project, it is helpful to give them a specific number (e.g., five) of tasks
to include.. Otherwise some students may spend too much time on this question
because they are working on a much more detailed project than other students. If
given a specified number of tasks, students should list and number each task. A
simple diagram with five nodes should be drawn that shows the amount of time
for each task and reflects appropriate predecessor activities.
M2C3-4. Explain the concept of resource leveling and why it is helpful to project
managers. (Response: See pages 137-138)
Sample Response: Resource leveling refers to efforts to schedule work on non-
critical activities so that resource requirements on peak days will be reduced.
Resource leveling requires that managers have PERT/CPM diagrams and
information about float so they can move the start dates of activities without
affecting the critical path. For complex tasks, resource leveling is done using
computer programs. Project managers can save time and money if they are able
to allocate resources across time based on slack periods, rather than having to
pay overtime or rent additional equipment during peak times .
M2C3-5. What is a Gantt Chart? [How could a Gantt chart be used to manage a
project with which you are currently involved? Create a Gantt chart showing
the first five activities for that project.] (Response: See pages 138-140)
Sample Response: A Gantt chart is used to visually display project activities
across time. Activities/tasks from the work breakdown structure are listed
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sequentially on the vertical axis and time is shown on the horizontal axis. For
each activity, a bar is drawn showing the time commitment.
Note: As noted above, asking students to describe a personal experience with a
project is a good way to test understanding, but introduces some important issues
from the perspective of grading. If students are asked to describe a specific
project (from work, school, community life) and develop a Gantt chart for the
project, it is helpful to give them a specific number of activities (e.g., five) to
include.
M2C3-6. What are the four primary resources that need to be monitored over the
course of a project? What tools can project managers use to monitor these
resources? (Response: See pages 141-143)
Sample Response: Resources that project managers need to monitor include time,
money, people, and materials. Gantt charts can be used as project monitoring
tools. A standard Gantt chart can be used to monitor time on the project versus
time budgeted. Similarly, specialized Gantt charts showing personnel task
assignments can be used to monitor the availability of people and how much time
individuals have spent on a project. A Bar Chart Cost schedule is a specialized
Gantt chart that shows projected costs; actual costs can be added to this chart for
monitoring purposes. In addition to Gantt charts, cost/schedule integration
graphs, and variance calculations are also tools managers can used to monitor
resources, for example, money spent versus money budgeted.
M2C4: Measuring and Monitoring Performance and Quality
M2C4-1. Discuss why organizations fail to monitor the right processes and outcomes.
Has this become less of a problem since 1975 when Steven Kerr wrote his
classic article on this topic? Justify your conclusion. (Response: See page
t147-148)
Sample Response: A major factor in the failure of organizations to monitor the
right processes and outcomes is due to inappropriate performance measures
being used as incentives for employees. Kerr identified three different reasons for
using measures that do not actually relate to efficiency in achieving
organizational goals. First, sometimes performance measures are selected
because they are “easy” to observe (highly visible) and appear to be “objective”
because they can be easily counted/quantified. For example, it is easier to
measure how long a call center employee is on the phone than to measure the
quality of customer service provided. Second, sometimes hypocrisy plays a role –
the stated organizational goals are not actually the true goals. This would seem to
be the case with insurance companies that sell policies by stating the company
goal is to help customers who suffer from financial losses but reward employees
for NOT paying claims. Finally, Kerr notes that sometimes reward systems are
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designed to emphasize something other than efficiency, such as morality or equity
or even seniority. An example of this might be a company that pays people based
on their years of service, rather than on their actual contribution to the
organization.
Despite the fact the Kerr’s article has been widely read and the basic concepts he
discusses are well-understood, organizations still fail to monitor the right
processes and outcomes. Evidence for this conclusion can be found in the many
recent organizational scandals and failures, including the financial crisis that
was rooted partly in the failure of lenders to properly evaluate the credit-
worthiness of borrowers.
Note: Students may provide other examples based on in-class discussion or recent
news stories. For example, the major BP oil spill in the Gulf of Mexico led to the
discovery that “Minerals Management Service officials, who can receive cash
bonuses in the thousands of dollars based in large part on meeting federal
deadlines for leasing offshore oil and gas exploration, frequently changed
documents and bypassed legal requirements aimed at protecting the marine
environment, the documents show.” (Washington Post, May 24, 2010).
M2C4-2. Identify and explain the three characteristics of measures that are important
for understanding how useful a measure is? For each characteristic, provide
an example based on how you are evaluated at work or at school. Which
characteristic is most important from the manager’s perspective? (Response:
See pages 148-149)
Sample Response: Measures can classified based on their objectivity
completeness, and responsiveness Objective measures can be verified
independently, in contrast to subjective measures that are dependent on personal
judgment. For example, attendance is an objective measure; quality of class
contribution is much more subjective. Completeness refers to how much of the
desired performance is captured by a particular measure. For example, when
testing to see if a student has mastered all the material covered during a semester,
a short exam that asks questions about only a few of the topics covered would be
less complete measure than a longer exam that included questions on every topic
covered. Responsiveness relates to the question of the extent to which the
manager can act to influence the measure directly. For example, stock price is
related to employee behavior, but often quite indirectly and there are other
factors such as interest rates and investor sentiments that also have an impact on
stock price Responsiveness is the most important from the manager’s perspective
because it gauges the extent to which the manager can act to influence the
measure. For example, measuring customer satisfaction with employee service
and discovering that customers did not think a salesperson was well informed
about product features provides information that a manager can use to identify
specific training the employee needs.
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M2C4-3. Compare and contrast the Balanced Scorecard approach to evaluating
organizational performance to the four quadrants of the competing values
framework. How do these approaches differ from more traditional methods
for measuring organizational performance. Which approach would you
recommend – the traditional, the balanced scorecard, or the competing
values framework? Justify your answer. (Response: See page 150)
Sample Response: Traditional approaches to measuring organizational
performance relied primarily on financial results. The balanced scorecard
approach added customer, internal business, and innovation perspectives to the
financial perspective. The competing values framework includes all of the
perspectives in the balanced scorecard, but the human relations (collaborate)
quadrant also emphasizes the employee perspective. Of the three, the competing
values framework is the most complete. In addition, many financial measures are
less responsive than measures associated with employees and customers, so that
is another reason to prefer to competing values framework.
Note: Students who select either the balanced scorecard or traditional financial
approaches would need to justify their answers based on the costs associated with
gathering measures for all four quadrants of the competing values framework.
With respect to grading, it is often helpful to assign some points to answering the
recommendation question, regardless of the choice, and some points to the quality
of the argument supporting that recommendation. This reduces the perception
that the instructor is forcing students to agree with her/him and focuses attention
on the importance of articulating a justification for recommendations.
M2C4-4. Discuss the benefits and costs of using a system such as the Baldrige Criteria
for measuring organizational performance. [Do you think that certain types
of organizations might be more likely to benefit from using the Baldrige
criteria than others? Why or why not?] (Response: See pages152-153)
Sample Response: Systems such as the Baldrige Criteria can be helpful for
identifying areas for improvement, they can also be time consuming and
cumbersome to implement. For example, the Analysis for the measuring
performance and quality competency included only a small fraction of the
Criteria but still included a number of different questions and issues that needed
to be addressed. Some research has linked winning a Baldrige award to positive
stock performance, although the most recent data on this relationship has not
replicated earlier findings.
Note: The bracketed question about different types of companies using the
Baldrige Criteria goes beyond the material in the text and would be appropriate
for more advanced classes. Students might approach this question in different
ways. For example, students might note that in industries where there are specific
criteria, such as health care, using the Baldrige criteria might be more important
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than for companies that are less specialized. Students might also suggest that only
companies that think they have a chance of winning a Baldrige award should use
the criteria because they would be able to use the award for advertising. For
grading purposes, points should be primarily based on the quality of the
argument, not the student’s conclusion. To help students recognize that this has
been done, allocating some points to the decision, regardless of what it is can be
very helpful.
M2C5: Encouraging and Enabling Compliance
M2C5-1. Explain the two basic types of variables that influence compliance. Give an
example based on your own behavior of how each type of variable influenced
your behavior. Which type of variables do managers have more control
over? Does that mean that they can ignore the other type of variables?
(Response: See pages157-158)
Sample Response: Compliance is influenced by both situational-level variables and
individual-level variables. Situational-level variables relate to the particular
circumstances at a given time. For example, are we in a home, park, or house of
worship? Are we here for a meal or a wedding? These types of situational variables
can influence behavior because there are certain norms associated with particular
situations and many people tend to comply with those norms. Individual-level
variables relate to things about a particular person such as their age, education,
background, personality, etc. These characteristics can also influence behavior.
Managers have more influence over situational variables. Although they are less
able to change individual-characteristics, that does NOT mean that they can ignore
individual-level variables. Because behavior results from the combination of both
situational- and individual-level variables, managers need to understand both the
characteristics of the situation and the characteristics of the individual in their
efforts to predict and motivate employee behavior.
M2C5-2. Discuss five [or specify a smaller number] different reasons why employees
engage in noncompliance in the workplace. (Response: See pages158-161)
Sample Response: Employees may not comply because they didn’t know they
should. Lack of knowledge can be due to lack of information or ambiguity about job
requirements. Sometimes, employees are not sure what they should do. They may
have some information, but there is some ambiguity about what is required or who
is required to do it. This is especially common where there is peer pressure to
violate a rule or where companies send mixed messages by not responding or
responding inconsistently to violations of rules. Employees sometimes feel
obligated to look out for themselves, and thus when incentives are not aligned with
the desired behavior, misbehavior is more likely to result. When management is
seen as being untrusting of employees or unworthy of being trusted by employees,
employees are also likely to engage in noncompliance or even negative behaviors
like sabotage. Finally, sometimes noncompliance occurs when employees sincerely
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believe that complying would be harmful to the organization or to society, as can be
seen in situations with organizational whistleblowers.
Note: This question can be revised to ask specifically for the “triggers” identified
by Litzky et atl (2006) or the “explanations” used as categories in the text. Asking
the question in a more generalized way give students the chance to use either
approach or a combination of both approaches while still demonstrating a mastery
of the key concepts.
M2C5-3. Compare and contrast the six (or some smaller number) basic compliance
strategies that managers can use. Which of these strategies would you be
most likely to use? Least likely? Why? (Response: See pages 161-163)
Sample Response: The six compliance strategies are punitive (using sticks),
remunerative (offering carrots), preventative (putting up hurdles), generative
(creating fast tracks), cognitive (enlightening employees about their self interest),
and normative (converting employees). Punitive and preventative strategies are
negatively focused. In contrast, remunerative, generative, cognitive, and normative
strategies are all more positively focused. The first five strategies are all similarly
because they are based on ideas about self interest. In contrast, normative
strategies are less clearly self focused and appear to be based more on a broader
notion of what is right or good for the group/organization/society.
As a manager, I would be most likely to use a combination of enlightenment and
fast tracks. Helping people understand what is in their self-interest is a low-cost
method for increasing compliance. While generative strategies that make it easier
to comply may be somewhat more costly, once in place, that cost should be
eliminated or substantially reduced. In contrast, offering carrots for compliance
can become very expensive. Both sticks and hurdles tend to result in lower morale,
so I would tend to avoid these is possible. I would probably be least likely, however,
to try to use normative/conversion strategies because these tend to require a long
term commitment and may require more charisma on the part of the manager than
I think I have.
Note: As with the previous question, our concern is less with the particular
language students use than with their understanding of the basic concepts.
Therefore, we would award a student who identifies one strategy as “offering
rewards” the same number of points for that part of the answer as another student
who uses the label “remunerative” or “offering carrots.” Similarly, for the second
part of the question, the focus should be on the reasoning provided by the student,
rather than the specific choices made. Points can also be awarded for recognizing
that using a combination of strategies is often more effective than using a single
strategy.
M2C5-4. Describe four different costs associated with compliance strategies. As a
manager, how could you minimize these costs? (Response: See pages163-165)
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Sample Response: Most compliance strategies have some direct costs. They may
require the payment of incentives (carrots) to employees or they may require the
installation of expensive monitoring systems to ensure that punishments can be
given for failures to comply. Beyond direct financial costs, compliance strategies
often cause employees to feel that management does not trust them which, in turn,
may cause employees to “live down to” that expectation. Even remuneration
through incentives can become a problem over time as employees begin to see
those rewards as an entitlement and cease to be motivated by them. A third type of
cost associated with compliance strategies is that by controlling employee
behavior, opportunities that would have been discovered under a more flexible
system are missed. Employees may become so accustomed to following the rules
that they fail to notice when those rules are no longer effective. Finally, in some
cases, compliance strategies can lead to destructive deviance because employees
feel that they have been unfairly treated. For example, having video cameras in the
locker room may cause people to feel their privacy has been violated, so they may
act out against the organization. Some employees may see surveillance cameras as
a challenge, and actually be encouraged to try to steal organizational resources
without detection.
M2C5-5. Discuss the purpose, history, and impact of the U.S. Federal Sentencing
Guidelines for Organizations (the guidelines or USFSGO). (Response: See
pages 165-167)
Sample Response: The original purpose of the USFSGO was to reduce
inconsistencies in how different organizations were treated when they violated the
law and to reduce organizational wrongdoing by using multiple strategies to
encourage voluntary compliance with the law. First issued in 1991, the guidelines
were originally created as a manual for judges. There was evidence of some
positive impact of the original guidelines, but many corporate crimes continued to
be uncovered. In 2004, the guidelines were revised and expanded. The revision
provided information about what constituted a meaningful compliance program in
order for an organization to qualify for reduced punishment, in the event that the
organization was found guilty of criminal activity. More accountability was also
put on corporate boards and top executives and specific responsibilities were
identified as being required for a meaningful compliance program. The 2004
revision also expanded the scope of the guidelines to emphasize the idea of having
an ethical organizational culture. The guidelines have provided new jobs in the
area of compliance, but the impact of the guidelines has been, by most measures,
mixed. While some improvements have been made, corporate crimes continue to be
discovered, as we learned during the aftermath of the global financial crisis.
Note: Although many students might respond to the question “Discuss the U.S.
Federal Sentencing Guidelines for Organizations” by including the purpose,
history, and impact, not all students will. Specifying what to include in the
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42
question can reduce questions about grading after the exam. A simpler question
could focus on just the purpose of the Guidelines.
M2C5-6. Explain the six (or a smaller number) key criteria for effective compliance
and ethics programs according to the Overview of the Organizational
Guidelines. (Response: See page 167)
Sample Response:. (1) Oversight is required by high-level personnel; top
executives must be actively involved in the compliance and ethics program. (2)
Due care must be used when delegating substantial discretionary authority. For
example, background checks might be used to determine if someone who has access
to large amounts of cash has any prior convictions for embezzlement. (3) Effective
communication to all levels of employees is required to ensure that everyone knows
the rules and understands that they are expected to follow those rules. (4) A system
for monitoring and auditing compliance must be in place and there must be a
method for employees to report wrongdoing without being afraid that they will be
punished. (5) Compliance standards must be consistently enforced and must
include disciplinary mechanisms. (6) Once a violation has been detected, steps must
be taken to reduce the chances that similar offences will occur in the future.
Note: As an alternative to listing these criteria, students could be asked to link
some of the criteria to the different triggers for noncompliance and/or the six
compliance strategies. For example:
Key Criteria for Effective
Compliance and Ethics
Programs
Related Triggers for
Noncompliance and/or
Compliance Strategy
(3) Effective
communication to all levels
of employees
This would reduce ambiguity about
job performance, making it harder
for employees to claim they did not
know or were not sure what to do.
(5) Consistent enforcement
and compliance standards
including disciplinary
mechanism
This would avoids sending mixed
messages which can trigger
noncompliance. Disciplinary
measures would be a punitive
strategy.
(6) Reasonable steps to
respond to and prevent
further similar offences
upon detection of a
violation
Responding to violations could be a
punitive strategy. Preventing future
violations sounds most like a
preventative strategy, but would not
necessarily preclude the use of
other strategies.
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