EXAM 2 CH 5 6 7 9

Chapter 5 Perception and Individual Decision Making
MULTIPLE CHOICE What Is Perception and Why Is It Important?

1. A process by which individuals organize and interpret their sensory impressions
in order to give meaning to their environment is called:
c. perception. Factors Influencing Perception
2. What one perceives _______ objective reality.
a. is always the same as
b. can be substantially different from
c. should be the same as
d. is considered
(b; Easy; p. 123)
3. Which one of the following is not a factor that influences perception?
a. target
b. society
c. perceiver
d. situation
(b; Easy; p. 124)
4. If two people see the same thing at the same time yet interpret it differently,
the factors that operate to shape their dissimilar perceptions reside in:
a. the perceiver.
b. the target being perceived.
c. the timing.
d. the context of the situation in which the perception is made.
(a; Challenging; p. 124)
5. Personal characteristics of the individual perceiver include all of the
following except:
a. his/her attitudes.
b. personality.
c. expectations.
d. location.
(d; Moderate; Exh. 5-1; p. 124)
6. The focus of a person’s attention appears to be influenced by:
a. interests.
b. past experiences.
c. expectations.
d. all of the above
(d; Moderate; p. 124)
7. Which of the following is not true about our perceptions of a target?
a. Objects that are close together will be perceived together rather than
separately.
b. Persons that are similar to each other tend to be grouped together.
c. Targets are usually looked at in isolation.
d. Motion, sounds, size, and other attributes of a target shape the way we see it.
(c; Moderate; p. 124) 8. The time at which an object or event is seen is an example
of a _____ factor influencing the perceptual process.
a. perceiver
b. target
c. context of the situation
d. reality (
c; Moderate; pp. 124-125)
Person Perception: Making Judgments About Others
9. The theory that has been proposed to develop explanations to explain that we
judge people differently depending on what meaning we assign to their behavior is:
a. behavioral theory.
b. judgmental theory.
c. equity theory.
d. attribution theory.
10. The most relevant application of perception concepts to OB is: a. person
perception.
b. context perception.
c. situation perception.
d. reality perception.
11. When individuals observe behavior, they attempt to determine whether it is
internally or externally caused. This is the:
a. fundamental attribution error.
b. self-serving bias.
c. attribution theory.
d. selective behavior theory.
(c; Moderate; p. 125)
12. The determination of whether an individual’s behavior is externally or
internally caused depends on 89 all of the following factors except:
a. distinctiveness.
b. consensus.
c. consistency.
d. perception. (d; Moderate; p. 125)
13. Internally caused behaviors are:
a. those that are believed to be under the personal control of the individual.
b. resulting from personality traits.
c. resulting from outside causes.
d.forced upon a person by the situation.
(a; Easy; p. 125)
14. Which of the following is not true about attribution theory?
a. It tries to attribute causes to specific behaviors.
b. The cause of behavior may be internal.
c. The cause of behavior may be external.
d. Behavior can be attributed to one’s heredity.
15. Which of the following is an example of externally caused behavior?
a. An employee is late because he was partying late and then overslept.
b. An employee is late because of a major accident that tied up traffic.
c. An employee was fired because he did not possess the necessary skills.
d. An employee was promoted because he was intelligent.
(b; Challenging; p. 125)
16. Whether an individual displays different behaviors in different situations is
referred to as:
a. continuity.
b. integrity.
c. distinctiveness. d. flexibility.
17. If everyone who is faced with a similar situation responds in the same way,
attribution theory states that the behavior shows:
a. consensus.
b. similarity.
c. reliability.
d. consistency.
(a; Moderate; p. 125)
18. Janice is late for work each day by about ten minutes. This behavior exhibits:
a. consensus.
b. similarity.
c. reliability.
d. consistency.
(d; Moderate; pp. 125-126)
19. The more consistent a behavior, the more the observer is inclined to:
a. depend on the behavior.
b. attribute it to internal causes.
c. attribute it to consensus.
d. attribute it to external causes.
(b; Moderate; pp. 125-126)
20. If a person responds the same way over time, attribution theory states that the
behavior shows:
a. distinctiveness.
b. consensus.
c. consistency.
d. continuity.
(c; Moderate; pp. 125-126)
21. The tendency to underestimate the influence of external factors and
overestimate the influence of internal factors when making judgments about the
behavior of others is termed:
c. selective perception.
d. consistency.
22. Your boss never gives you the benefit of the doubt. When you were late this
morning, he assumed that you had overslept. He never considered that there might
have been a delay on the freeway. He is guilty of:
a. self-serving bias.
b. selective perception.
c. fundamental attribution error.
d. inconsistency.
23. The tendency of an individual to attribute his own successes to internal
factors while putting the blame for failures on external factors is:
c. consistency.
d. selective perception.
(b; Moderate; p. 126)
24.Jane is difficult to work with. Whenever she is successful she takes full credit
for what has happened, but whenever she is unsuccessful she attributes her failure
to bad luck or to one of her fellow employees. She is guilty of:
c. consensus.
d. distinctiveness.
25. When investors bragged about their investing expertise during the stock market
rally between 1996 and early 2000, then blamed analysts, brokers, and the Federal
Reserve when the market imploded in 2000, they were guilty of:
c. consensus.
d. distinctiveness.
26. Shortcuts in judging others include all of the following except:

a. stereotyping.
b. halo effect.
c. projection.
d. self-serving bias.
(d; Easy; p. 127)
27. Because it is impossible for us to assimilate everything we see, we engage in:
a. selective perception.
b. memorization.
c. mental desensitization.
d. periodic listening.
(a; Easy; p. 127)
28. _____ allows us to “speed-read” others, but not without the risk of drawing an
inaccurate picture.
a. Selective perception
b. Memorization c. Mental desensitization
d. Periodic listening
29. When we draw a general impression about an individual based on a single
characteristic such as intelligence, sociability, or appearance:
a. we have misjudged the person.
b. personal bias is in effect.
c. we are prejudiced.
d. the halo effect is operating.
30. The halo effect causes one trait to be extended into a(n):
a. overall evaluation.
b. stereotype.
c. unsatisfied need.
d. self-serving bias.
31. One of the shortcuts used to judge others involves evaluating a person based on
how he/she compares to other individuals on the same characteristic. This shortcut
is known as:
a. selective perception.
b. contrast effects.
c. halo effect.
d. prejudice.
32. _____ is the tendency to attribute one’s own characteristics to other people.
a. Stereotyping
b. Interpretation
c. Selection
d. Projection
(d; Easy; p. 128)
33. People who engage in _____ tend to perceive others according to what they
themselves are like, rather than according to what the person being observed is
really like.
a. projection
b. a contrast effect
c. halo effect
d. stereotyping
34. Among people who engage in projection, their perception of others is
influenced:
a. more by what the observer is like than by what the person being observed is
like.
b. more by the situation than by what the person being observed is like.
c. by the environment.
d. more by dominant attributes of the person than by the general character of the
person.
35. When we judge someone on the basis of our perception of the group to which
he/she belongs, we are using the shortcut called:
a. grouping.
b. stereotyping. c
. categorizing.
d. assimilating.
(b; Easy; pp. 128-129)
36. When F. Scott Fitzgerald said, “The very rich are different from you and me”
and Hemingway replied, “Yes, they have more money,” Hemingway refused to engage in
what shortcut to judge others?
a. projection
b. contrast effect
c. halo effect d. stereotyping
(d; Challenging; pp. 128-129)
37. Which of the following is not an example of stereotyping?
a. Men aren’t interested in child care.
b. Older workers can’t learn new skills.
c. This applicant was good at her last job, so she will be good at this one.
d. Women won’t relocate for a promotion.
(c; Easy; pp. 128-129)
38. When one person inaccurately perceives a second person and the resulting
expectations cause the second person to behave in ways consistent with the original
perception, _____ has occurred.
a. stereotyping
b. a self-fulfilling prophecy
c. a self-serving bias
d. the fundamental attribution error
39. One organizational area where there are important consequences of judging
people is:
a. the employment interview
b. marketing
c. accounting
d. operations
(a; Easy; p. 129)
40. Interviewers make perceptual judgments that:
a. usually agree with other interviewers.
b. are often inaccurate.
c. are exceptionally accurate.
d. are not quickly entrenched.
41. Which of the following is not true concerning interviewers?
a. Their perceptual judgments are often inaccurate.
b. Agreement among interviewers is often poor.
c. Different interviewers see the same things in the same candidate.
d. Interviewers generally draw early impressions that become very quickly
entrenched.
(c; Challenging; p. 129)
42. Most interviewers’ decisions change very little after the first _____ minutes
of the interview.
a. 1-2
b. 4-5
c. 30-40
d. 50-60
43. Another name for self-fulfilling prophecy is:
a. Pygmalion effect.
b. projection.
c. self-selecting bias.
d. negative reinforcement.
44. According to _____, people’s expectations determine their behavior.
a. Pygmalion effect
b. projection
c. self-selecting bias
d. negative reinforcement
45. Which of the following is not descriptive of performance evaluation?
a. It is closely tied to an employee’s future.
b. It is dependent on the perceptual process.
c. It is best to use subjective measures which are less judgmental.
d. Subjective measures are easier to implement by providing managers greater
discretion.
46. An assessment of an individual’s effort is a judgment susceptible to _____.
a. consistent objective measures
b. perceptual distortions
c. few biases
d. consistency across all raters
The Link Between Perception and Individual Decision Making
47. How individuals in organizations make decisions, and the quality of their final
choice is largely influenced by their:
a. personality.
b. perceptions.
c. experience.
d. job satisfaction.
(b; Challenging; p. 131) 4
8. ____ make decisions in organizations.
a. Top managers
b. Middle and lower level managers
c. Non-managerial managers
d. all of the above
(d; Easy; p. 131)
49. A discrepancy between some desired state and the actual condition is defined as
a(n):
a. decision.
b. criterion.
c. attribution.
d. problem.
How Should Decisions Be Made?
50. The optimizing decision-maker is:
a. rational.
b. creative.
c. satisfying.
d. innovative.
51. Decision making is initiated by:
a. a problem.
b. a solution.
c. conflict.
d. perceptual distortion.
52. Rationality assumes:
a. high intelligence.
b. consistency.
c. maturity.
d. unlimited choices.

53. Which is not one of the steps in the rational decision-making model?
a. defining the problem
b. identifying the decision criteria
c. rating the alternatives
d. computing the decisions that satisfice
54. In the following steps in decision making, which would come first?
a. Generate alternatives.
b. Identify criteria.
c. Make a choice.
d. Implement the decision.
(b; Easy; p. 132)
55. The factors that an individual views as important in a decision are considered
in which step in the optimizing model?
a. decision criteria
b. developing alternatives c. evaluation of alternatives
d. problem definition
56. Which of the following is not an assumption of the rational decision-making
model?
a. problem clarity
b. preferences change slowly
c. no time or cost constraints
d. maximum payoff
57. _____ is the ability to combine ideas in a unique way or to make unusual
associations between ideas.
a. Creativity
b. Talent
c. Decision making
d. Lateral thinking
58. Creativity’s most obvious value in decision making is in:
a. identifying the problem.
b. computing the optimal decision.
c. allocating weights to the alternatives.
d. helping identify all viable alternatives.
59. Why is creativity important to decision making?
a. It allows the decision-maker to more fully appraise the problem.
b. It allows the decision-maker to see problems others cannot see.
c. It helps the decision-maker identify all viable alternatives.
d. all of the above
60. Each of the following is part of the three-component model of creativity
except:
a. expertise.
b. creative thinking skills.
c. intuitive decision making.
d. intrinsic task motivation.
(c; Challenging; pp. 133-134)
61. The segment of the three-component model of creativity that is the foundation
for all creative work is:
a. expertise.
62. The segment of the three-component model of creativity that encompasses

personality characteristics associated with creativity is:
a. expertise.
(b; Challenging; pp. 133-134)
63. _____ is the motivational component in the three-component model of creativity
that turns creative potential into actual creative ideas.
a. Expertise
b. Creative thinking skills
c. Intuitive decision making
d. Intrinsic task motivation
(d; Challenging; p. 134)
How Are Decisions Actually Made In Organizations?
64. Looking for a solution that is satisfactory and sufficient is called:
a. suboptimizing.
b. seeking an implicit favorite.
c. simplifying.
d. satisficing.
65. Decision makers operate within the confines of _____ i.e., they construct
simplified models that extract the essential features from problems without
capturing all their complexity.
a. optimal decision making
b. intuitive decision making
c. bounded rationality
d. synectics
66. The satisficing decision maker is best characterized as:
a. seeking a “good enough” solution.
b. following bounded rationality.
c. a decision confirmation process.
d. a search for consistency.
67. _____ is an unconscious process created out of distilled experience.
a. Intuitive decision making
b. Bounded rationality
c. Optimizing decision making
d. Satisficing
68. Research on what game has provided an excellent example of how intuition works?
a. soccer
b. chess
c. cricket
d. backgammon
(b; Challenging; pp. 136-137)
69. Which of the following conditions would probably not lead to intuitive decision
making?
a. Time is limited and there is pressure to come up with the right decision.
b. Facts don’t clearly point the way to go.
c. A high level of certainty exists.
d. “Facts” are limited.
(c; Moderate; p. 137) 7
70. If a decision maker faces a conflict between selecting a problem that is
important to the organization and one that is important to a decision maker:
a. organizational interest is top priority.
b. self-interest tends to win out.

c. neither wins.
d. the winner is unpredictable.
71. Which of the following is not a bias in decision making?
a. representative heuristic
b. availability heuristic
c. escalation of commitment
d. an heuristical fallacy
(d; Easy; p. 139)
72. Judgmental shortcuts in decision making are termed:
a. optimalities.
b. escalations.
c. satisficing.
d. heuristics.
73. _____ is the tendency for people to base their judgments on readily available
information.
a. Representative heuristic
b. Availability heuristic
c. Escalation of commitment
d. An heuristical fallacy
74. The tendency to assess the likelihood of an occurrence by trying to match it
with a preexisting category is:
a. representative heuristic.
b. availability heuristic.
c. escalation of commitment.
d. an heuristical fallacy.
75. An increased commitment to a previous decision in spite of negative information
is termed:
a. escalation of commitment.
b. optimizing decision making.
c. satisficing decision making.
d. reengineering.
76. When inner-city African-American boys overestimate the likelihood of their
playing in the NBA because they have heard about a boy from their neighborhood ten
years ago who played professional basketball, they are suffering from a(n) _____
heuristic.
a. availability
b. escalation
c. representative
d. optimizing
77. People differ along two dimensions in their approaches to decision making.
These two dimensions are:
a. way of thinking/tolerance for ambiguity.
b. consideration/structure.
c. commitment/intuitive thinking.
d. rationality/concern for people.
78. People with the _____ style of decision making tend to make decisions fast and
focus on the short run.
a. directive
b. analytic
c. conceptual
d. behavioral

79. People with the _____ style of decision making tend to be very broad in their
outlook and consider many alternatives.
a. directive
b. analytic
c. conceptual
d. behavioral
80. People with the _____ style of decision making are careful decision-makers with
the ability to adapt to or cope with novel situations.
a. directive
b. analytic
c. conceptual
d. behavioral (b; Moderate; p. 140)
81. Which of the following is not one of the four styles of decision making?
a. directive
b. analytic
c. satisficing
d. conceptual
(c; Challenging; Exh. 5-5; pp. 140-141)
82. Business students, lower level managers, and top executives tend to score
highest in the _____ style of decision making.
a. analytic
b. directive
c. conceptual
d. behavioral
(a; Moderate; p. 141) 83.Which of the following is not an organizational
constraint on decision making?
a. performance evaluation
b. reward system
c. personality
d. formal regulations
(c; Easy; p. 142)
84. A culture’s time orientation can be expected to influence decision making. In
Egypt, decisions will be made:
a. quickly.
b. at a moderate pace.
c. slowly.
d. at various rates.
85. In the U.S., it is important that decisions appear to be made:
a. slowly.
b. only at senior levels.
c. intuitively.
d. rationally.
86. Which of the following is not listed in your text as a criterion for making
ethical choices?
a. utilitarianism
b. justice
c. rights
d. satisficing
87. Decisions made so as to provide the greatest good for the greatest number are
based on:
a. utilitarianism.
b. justice.
c. rights.
d. profit.
(a; Moderate; pp. 143-144)SCENARIO-BASED QUESTIONS
Application of Attribution Theory You are on a team with two individuals who are
difficult. The work has been divided among the three of you and each time your team
meets, Janet and Jim disagree about the progress of the team project. Janet is
convinced that Jim’s lack of progress is because he is inherently lazy and not
because of some overwhelming problem with the project itself. The truth seems to be
that Janet is not doing her part of the work.
150. You might attempt to understand Janet and Jim by using _____ theory.
a. social relevance
b. attribution
c. optimizing
d. satisficing
(b; Easy; pp. 125-126)
151. Janet seems to be guilty of:
a. proximity bias.
b. ethnocentrism.
c. the fundamental attribution error.
d. self-serving bias. (c; Moderate; pp. 125-126)
152. Janet may be attributing to Jim some of her own characteristics. She might be
guilty of:
a. projection.
b. the halo effect.
c. contrast effect.
d. stereotyping.
(a; Moderate; pp. 125-126)
Application of Shortcuts in Judging Others The students in your class are
presenting their oral presentations in front of the entire class. You have heard
that there are several frequently used shortcuts to judging others and are
wondering if any of these are being used by your teacher.
153. Jennifer has already presented two excellent reports. The report she has just
presented is clearly not as good as the first two reports, yet she is given the
same high grade as before.
a. The contrast effect is distorting the teacher’s perception.
b. The halo effect is operating.
c. The teacher has stereotyped Jennifer.
d. The teacher is projecting that Jennifer is an “A” student.
154. Allison has just presented her paper and has done a really good job. You are
afraid to go next because the _____ may operate and you will be perceived less
favorably than if your presentation is on another day.
a. stereotyping effect
b. halo effect
c. contrast effect
d. projection effect
155. You have heard that the teacher believes that men perform better in oral
presentations than women. This is an example of:
a. halo effect.
b. contrast effect.
c. projection.
d. stereotyping.
Application of Rational Problem-Solving Sarah is responsible for purchasing a new
computer system for her department. Given the significant financial investment,
Sarah has decided to use the rational decision-making model.
156. The first step of _____ occurred when Sarah’s manager informed her that the
old computer system was not able to accommodate the expected customer load.
a. identifying decision criteria
b. defining the problem
c. rating each alternative on each criterion
d. computing the optimal decision
157. The third step of the rational decision-making model requires Sarah to:
a. identify the decision criteria.
b. weight the decision criteria.
c. generate possible alternatives.
d. compute the optimal decision.
158. When Sarah evaluates each alternative against the weighted criteria and
selects the alternative with the highest total score, she is:
a. identifying decision criteria.
b. defining the problem.
c. rating each alternative on each criterion.
d. computing the optimal decision.
(d; Moderate; pp. 131-133) Application of Improving Creativity Susan is involved in
making a very important decision for her university. The university is searching
for a new president and Susan is a member of the committee. She wants to make
certain that all information is considered and the best candidate is chosen.
159. Susan wants the committee to produce novel and useful ideas and has decided
she should stimulate:
a. consensus.
b. creativity.
c. diversity.
d. clarity.
160. Creativity will probably be most important in:
a. helping identify all viable alternatives.
b. selecting the best alternative.
c. allocating weights to criteria.
d. evaluating the alternatives.
(a; Challenging; pp. 133-134)
161. If Susan decides to use the three-component model of creativity, she will
focus on _____ as the foundation of creative work.
a. creative thinking skills
b. intrinsic task motivation

c. expertise
d. external motivators
(c; Challenging; pp. 133-134)
Application of How Are Decisions Actually Made You are part of making a decision
about the appropriateness of discontinuing research on a new drug. This new drug
would save lives, but it is uncertain whether you can develop it within a
reasonable time frame and at a reasonable cost. Your firm has already spent a small
fortune on this drug. You have gathered so much information inpreparation to making
the decision that you are unable to sort the good information from the superfluous.
162. Your experience tells you that this project has merit. You decide to use _____
decision making and continue the project.
a. compulsive
b. intuitive
c. rational
d. satisficing
163. You decide to rely on judgmental shortcuts in order to make the decision in a
timely manner. These shortcuts are termed:
a. heuristics.
b. optimal solutions.
c. lateral approaches.
d. fundamental attribution errors.
164. You decide to spend more money on the project because you believe you might be
viewed as responsible if the project failed. You are guilty of:
a. availability heuristic.
b. representative heuristic.
c. escalation of commitment.
d. satisficing.
Application of Ethical Decision Making 109 You are the manager of a development
group in a large computer software company. You have decided that it is important
for your group to understand the many ways that ethical decisions can be made and
you are designing a training program on the subject of ethics.
165. You will probably teach the _____ criterion since it is the decision criterion
that currently dominates business decision making.
a. utilitarian
b. justice
c. rights
d. privilege
(a; Challenging; pp. 143-144)
166. You decide to teach the group about the importance of making decisions
consistent with fundamental liberties and privileges. You are planning to focus on:
a. utilitarian.
b. justice.
c. rights.
d. privilege.
Chapter 7 Motivation: From Concept to Applications
MULTIPLE CHOICE Management by Objectives 1. MBO emphasizes converting overall

organizational objectives into: a. capital gains. b. specific objectives for
organizational units and individual members. c. operational units. d. terms that
the individual worker can understand and accept. (b; Easy; p. 190) 2. MBO
emphasizes participatively set goals that are: a. tangible. b. verifiable. c.
measurable. d. all of the above (d; Moderate; p. 190) 3. For the individual
employee, MBO provides: a. specific personal performance objectives. b. increased
monetary compensation. c. communication between co-workers. d. a means to an end.
(a; Moderate; p. 190) 4. Since MBO works in an organization from the “top down” as
well as from the “bottom up,” if all individuals achieve their goals: a. employees
are more likely to be compensated for their efforts. b. their unit’s goals will be
attained and the organization’s overall objectives become a reality. c. the
individuals are less likely to be recognized for their work. d. the organization’s
objectives will suffer. (b; Moderate; p. 190) 5. Which of the following is an
example of an MBO objective? a. Decrease payroll costs by 6%. b. Increase quality
significantly. c. Process orders quickly. d. Improve customer service. (a;
Moderate; p. 190) 6. All of the following are ingredients common to MBO programs
except:
a. an explicit time period. b. participative decision making. c. consistent
monetary rewards. d. performance feedback. (c; Easy; p. 190) 142 7. Feedback in an
MBO program, ideally, is supplemented by: a. weekly meetings. b. periodic
managerial evaluations. c. monthly progress reports by the employee. d. open book
management. (b; Moderate; p. 190) 8. MBO objectives are: a. set unilaterally by the
boss. b. set by the boss and assigned to subordinates to be carried out. c. set
jointly by superior and subordinate. d. performed by the subordinate and evaluated
exclusively by the superior. (c; Easy; p. 190) 9. A goal of “do your best:” a. is
better than an easy goal. b. is better than a hard goal. c. is inappropriate goal
setting. d. enables the employee to perform their best. (c, Moderate, p. 191) 10.
According to the goal-setting theory, the goals that result in a high level of
individual performance are: a. specific hard goals. b. specific easy goals. c. no
goals at all. d. general easy goals that give the employee freedom. (a; Easy; p.
191) 11. One major difference between the goal-setting theory and MBO is that the
goal-setting theory: a. demonstrates that assigning goals to subordinates
frequently works as well as participative goalsetting. b. advocates participative
goal-setting. c. requires feedback on performance. d. does not use objectives. (a;
Challenging; p. 191) 12. The only possible disagreement between MBO and goal-
setting theory relates to the issue of: a. feedback. b. goals. c. objectives. d.
participation. (d; Challenging; p. 191) Employee Recognition Programs 143 13. Which
of the following is true about employee recognition programs? a. The best ones
recognize individual accomplishments only. b. The best ones recognize group
accomplishments only. c. The best ones recognize individual and group
accomplishments. d. The best ones use single sources. (c; Challenging; p. 192) 14.
Laura may only make minimum wage, but her supervisor regularly compliments her and
she has been chosen employee of the month twice this year. This is a good example
of the power of: a. recognition. b. participation. c. goal setting. d. pay.
(a; Moderate; p. 192) 15. Which of the following is not true regarding recognition?
a. Rewarding a behavior with recognition immediately following that behavior is
likely to encourage its repetition. b. Recognition can take many forms. c. To
enhance group cohesiveness and motivation, you can celebrate team successes. d.
Good work should only be recognized in private. (d; Moderate; p. 193) 16.
Researchers found that employees considered the most powerful workplace motivator
to be: a. recognition. b. money. c. opportunity for advancement. d. autonomy. (a;
Moderate; p. 193) 17. Which of the following is a form of recognition? a. personal
congratulations b. a handwritten note c. public notice d. all of the above (d;
Easy; p. 193) 18. The _____ have been especially effective at making suggestion
systems work. a. Americans b. Japanese c. Portuguese d. Canadians (b; Moderate; p.
193) 19. One of the most well-known and widely used recognition devices is: a.
bonuses. 144 b. suggestion systems. c. brainstorming. d. company t-shirts. (b;
Moderate; p. 193) 20. The laws of _____ require companies to have elected
representatives from their employee groups as members of their board of directors.
a. New Zealand b. Brazil c. Denmark d. Great Britain (c; Challenging; p. 193) 21.
Which of the following countries does not have a law requiring companies to have
elected representatives from their employee groups as members of their board of
directors? a. Germany b. Austria c. Brazil d. Sweden (c; Challenging; p. 103) 22.
Employee involvement encompasses such popular ideas as: a. employee ownership. b.
workplace democracy. c. empowerment. d. all of the above (d; Moderate; p. 194) What
Is Employee Involvement? 23. A participative process that uses the entire capacity
of employees and is designed to encourage increased commitment to the
organization’s success is: a. MBO. b. employee involvement.
c. reengineering. d. OB Mod. (b; Moderate; p. 194) 24. Participation: a. is
synonymous with employee involvement. b. is a more limited term than employee
involvement. c. is the larger framework of which employee involvement is a subset.
d. and employee stock ownership plans are synonymous. (b; Challenging; p. 195) 25.
Which of the following is not an example of employee involvement? a. variable-pay
programs b. participative management 145 c. quality circles d. employee stock
ownership plans (a; Moderate; p. 195) 26. The distinct characteristic common to all
participative management programs is the use of: a. joint decision making. b.
increased compensation. c. flexible benefits. d. all of the above (a; Moderate; p.
195) 27. Participative management: a. is a panacea for poor morale. b. is a panacea
for low productivity. c. is not appropriate for every organization. d. does not
require trust. (c; Challenging; p. 195) 28. Participative management is a method of
management in which: a. subordinates make corporate decisions and management helps
carry out those decisions. b. all upper management participate in the
organization’s strategic planning. c. subordinates share a significant degree of
decision-making power with their immediate superiors. d. low-level workers meet
occasionally with the CEO to discuss problems within their department. (c;
Moderate; p. 195) 29. Management would want to share its _____ power with
subordinates because it may increase commitment to decisions and can result in
better decisions. a. coercive b. referent c. communication d. decision-making (d;
Moderate; p. 195) 30. Research studies conducted on the participation-performance
relationship show that the use of participation: a. enhances job satisfaction. b.
increases motivation. c. has only a modest influence on employee productivity. d.
greatly influences employee attitudes. (c; Moderate; p. 195) 31. Almost every
country in Western Europe has some type of legislation requiring companies to
practice: a. representative participation. b. MBO. 146 c. OB Mod. d. quality
circles. (a; Easy; p. 195) 32. _____ has been called “the most widely legislated
form of employee involvement around the world.” a. Representative participation
b. MBO c. OB Mod d. Quality circles (a; Moderate; p. 195) 33. The goal of
representative participation is: a. for workers to own the firms where they work.
b. to help workers’ self-esteem. c. to provide greater distinction between workers
and management. d. to redistribute power within the organization. (d; Moderate; p.
195) 34. _____ are employees who sit on a company’s board of directors and
represent the interests of the firm’s employees. a. Board representatives b. Works
councils c. Quality circles d. Union representatives (a; Moderate; p. 196) 35.
_____ link employees with management. a. Board representatives b. Works councils c.
Quality circles d. Union representatives (b; Moderate; p. 196) 36. Overall, the
greatest value of representative participation is: a. increased motivation. b.
increased satisfaction. c. symbolic. d. all of the above (c; Moderate; p. 196) 37.
Work groups of employees and supervisors who meet regularly to discuss their
quality problems and recommend solutions is a form of participative management
called: a. department teams. b. cooperative groups. 147 c. evaluation teams. d.
quality circles. (d; Moderate; p. 196) 38. Quality circles were originally begun in
____ and exported to ____ in the 1950s. a. Japan; Europe b. the U.S.; Europe c. the
U.S.; Japan d. Japan; the U.S. (c; Moderate; p. 196) 39. Quality circles meet
regularly to: a. discuss their quality problems. b. investigate causes of the
problems. c. recommend solutions. d. all of the above (d; Moderate; p. 196) 40. One
author suggested that the ___ was the management fad of the 1980s, but they’ve
“become a flop.” a. MBO program b. reengineering program c. ESOP d. quality circle
(d; Moderate; p. 196) 41. A company-established benefit plan in which employees
acquire stock as part of their benefits is a(n):
a. MBO program. b. reengineering program. c. ESOP. d. quality circle. (c; Moderate;
p. 197) 42. Research on employee stock ownership programs indicates that they: a.
increase employee satisfaction. b. reduce salaries. c. reduce stress. d. increase
productivity. (a; Moderate; p. 197) 43. Participative management is compatible with
all of the following except: a. ERG theory. b. Theory X. c. efforts to stimulate
the achievement need. d. MBO. 148 (b; Moderate; p. 198) 44. Theory X is consistent
with: a. the autocratic style of managing people. b. participative management. c.
ERG theory. d. the cognitive evaluation theory. (a; Challenging; p. 198) 45. Which
of the following is true? a. Theory Y aligns with the autocratic management style.
b. Employee involvement programs provide intrinsic motivation. c. Theory Y aligns
with the autocratic management style. d. Employee involvement is incompatible with
ERG theory. (b; Moderate; p. 198) Variable-Pay Programs 46. Which of the following
are all forms of variable-pay programs? a. piece-rate, wage incentive plans,
gainsharing b. profit-sharing, lump-sum bonuses, extended vacations c. wage
incentive plans, flextime, piece-rate d. retirement benefits, extended vacations,
wage incentive plans (a; Easy; p. 199) 47. One advantage of variable pay plans to
management is that they turn _____ into _____. a. fixed costs; variable costs b.
high productivity; low productivity c. slow employees; high performers d. high
costs; lower costs (a; Challenging; p. 199) 48. The most widely used variable-pay
programs include all of the following except: a. piece-rate wages. b. bonuses. c.
gainsharing. d. hourly wages. (d; Moderate; p. 199) 49. An employee who _____ is
paid according to a piece-rate plan. a. performs community services b. is paid $2
for each unit produced c. is paid time and a half for overtime d. is on commission
(b; Moderate; p. 200) 149 50. Organization-wide programs that distribute
compensation based on some established formula designed around a company’s
profitability are termed: a. profit-sharing plans. b. gainsharing. c. variable pay.
d. ESOPs. (a; Moderate; p. 200) 51. _____ is an incentive plan where improvements
in group productivity determine the total amount of money that is allocated. a.
ESOP b. Gainsharing c. Variable pay d. Scanlon plan (b; Moderate; p. 200) 52. Which
of the following is true about organizations with profit-sharing plans? a. They
have more predictable salaries. b. Recession doesn’t affect pay in these
organizations. c. They have higher levels of profitability. d. They have more
grievances. (c; Moderate; p. 200) 53. Variable pay compensation is probably most
compatible with: a. Theory Y. b. expectancy theory. c. MBO. d. participative
management. (b; Moderate; p. 201) 54. If rewards are allocated completely on
nonperformance factors, such as seniority or job title, then employees are likely
to: a. complain to management. b. quit their jobs. c. reduce their effort. d.
absent themselves from work. (c; Moderate; p. 199) 55. One advantage of variable-
pay programs is that they: a. are easy to administer. b. are a form of flexible
benefits. c. avoid the fixed expense of permanent salary increases. d. decrease
total employee compensation. (c; Moderate; p. 199) 150 56. The new trend in
variable-pay programs is: a. larger incentives. b. including upper management. c.
piece-rate plans. d. including nonmanagerial employees. (d; Challenging; p. 200)
57. Gainsharing’s popularity seems to be narrowly focused among: a. large,
unionized manufacturing companies. b. large service organizations. c. small, non-
unionized manufacturing companies. d. small, privately-held companies. (a;
Challenging; p. 200) 58. Many reasons are given for not adopting the pay-for-
performance concept. Of the following, which is not one of those reasons? a. It is
difficult to determine what should constitute performance. b. Employees’ pay does
not have to stay in step with inflation. c. There is an historical attachment to
cost-of-living raises. d. It is difficult to determine how to measure performance.
(b; Challenging; p. 201) Skill-Based Pay Plans 59. When pay levels are based on how
many skills employees have or how many jobs they can do, _____ is being used.
a. a variable pay plan b. flexible pay c. competency-based pay d. gainsharing (c;
Moderate; p. 202) 60. Skill-based pay: a. is an alternative to job-based pay. b. is
called competency-based pay. c. is called knowledge-based pay. d. all of the above
(d; Moderate; pp. 202-203) 61. From management’s point of view, the appeal of
skill-based plans is their: a. flexibility. b. low cost. c. motivation. d. ease of
administration. (a; Moderate; pp.202-203) 62. Which of the following is not a
downside of skill-based pay? 151 a. People can “top out.” b. Skills can become
obsolete. c. Ambitious people can confront minimal advancement opportunities. d.
People are paid for acquiring skills for which there is no immediate need. (c;
Moderate; p. 203) 63. Skill-based pay plans are compatible with all of the
following except: a. ERG theory. b. the achievement need. c. reinforcement theory.
d. motivating professionals. (d; Challenging; p. 203) 64. Paying people to expand
their skill levels is consistent with the _____ need. a. affiliation b. achievement
c. social d. security (b; Moderate; p. 203) 65. Companies that pay employees for
learning extra skills reported higher: a. operating costs. b. employee performance.
c. turnover. d. absenteeism. (b; Challenging; p. 204) Flexible Benefits 66. If
employees are allowed to pick and choose from among a menu of benefit options, they
are said to have: a inconsistent needs. b. benefit menu options. c. flexible
benefits. d. participative management. (c; Easy; p. 204) 67. The average
organization provides fringe benefits worth approximately _____ percent of an
employee’s salary. a. 25 b. 30 c. 35 d. 40 (d; Challenging; p. 204) 68. Options in
the flexible benefit programs might include: 152 a. extended disability.
b. college tuition reimbursement programs. c. extended vacation time. d. all of the
above (d; Easy; p. 204) 69. In the future, we can expect the percentage of large
and medium-sized companies offering flexible benefit plans to increase to reflect:
a. the expanding diversity among employees. b. growing entitlement. c. greater
competition for employees. d. greater desire to give employees more. (a;
Challenging; p. 205) 70. A major drawback of flexible benefit programs is: a. the
organization’s costs are generally higher. b. employees can purchase fewer total
benefits. c. reduced flexibility. d. these plans are only available to larger
companies. (b; Moderate; p. 205) Special Issues in Motivation 71. Professionals are
typically motivated by: a. money. b. time off. c. job challenge. d. promotions. (c;
Challenging; p. 206) 72. Which of the following is not true about motivating
professionals? a. They are motivated by money. b. They are motivated by challenging
jobs. c. They are loyal to their profession rather than their employer. d. Their
commitment to their profession means they rarely define their workweek in terms of
8 to 5 and five days a week. (a; Moderate; p. 206) 73. To motivate professionals,
you should do all of the following except: a. provide them with ongoing challenging
projects. b. give them autonomy. c. reward them with higher salaries. d. allow them
to structure their work in ways that they find productive. (c; Moderate; p. 206)
74. What motivates contingent workers? a. opportunity for permanent status b.
training opportunities 153 c. freedom d. all of the above (d; Moderate; pp. 206-
207) 75. The opportunity for training will motivate: a. professionals. b.
contingent workers. c. a and b d. none of the above (c; Moderate; pp. 206-207) 76.
In order to maximize the motivation of a diverse workforce, the key word will be:
a. fairness. b. flexibility. c. status. d. money. (b; Moderate; p. 207) 77.
Motivation of people holding jobs with highly repetitive tasks can be made easier
by: a. increasing pay. b. increasing autonomy.
c. careful selection. d. ESOPs. (c; Moderate; p. 208) 78. Low-skilled service
workers can best be motivated by: a. more interesting jobs. b. flexible scheduling.
c. raising pay. d. stock options. (c; Moderate; p. 208) TRUE/FALSE Management By
Objectives 79. Installing a variable-pay program can make goal-setting theory
operational. (False; Challenging; p. 190) 80. In MBO, goals are unilaterally set by
the employee and communicated to the boss. (False; Easy; p. 190) 81. In MBO, goals
are established for departments and units rather than for individual employees.
(False; Moderate; p. 190) 82. The four ingredients common to MBO programs are goal
specificity, participative decision making, an implicit time period, and
performance feedback. (False; Challenging; p. 190) 154 83. MBO seeks to give
continuous feedback on progress toward goals. (True; Moderate; p. 190) 84. In MBO,
goals should be tangible and measurable. (True; Moderate; p. 190) 85. MBO relies on
participatively set goals. (True; Easy; p. 190) 86. MBO directly advocates specific
goals and feedback. (True; Moderate; p. 191) 87. MBO would be most effective when
the goals are easily reached by the employees. (False; Moderate; p. 191) 88. There
are almost no documented cases where MBO has been implemented but failed to meet
management’s expectations. (False; Easy; p. 191) Employee Recognition Programs 89.
The best employee recognition programs are those that recognize just individual
accomplishments. (False; Challenging; p. 193) 90. Consistent with reinforcement
theory, rewarding a behavior with recognition immediately following that behavior
is likely to encourage its repetition. (True; Moderate; p. 193) 91. One of the most
expensive recognition programs is that which recognizes an employee’s superior
performance. (False; Easy; p. 193) 92. One of the most well-known and widely used
recognition devices is the use of suggestion systems. (True; Moderate; p. 193)
Employee Involvement Programs 93. The laws of the United States require companies
to have elected representatives from their employee groups as members of their
board of directors. (False; Moderate; p. 193) 94. Employee involvement is a
participation process that uses the entire capacity of employees and is designed to
encourage increased commitment to the organization’s success. (True; Moderate; p.
194) 95. Employee participation and employee involvement are synonymous. 155
(False; Challenging; pp. 194-195) 96. Participative management implies joint
decision making and equal decision-making roles. (False; Moderate; p. 195) 97. It
is generally agreed among OB scholars that participative management should be
treated as an ethical imperative. (False; Challenging; p. 195) 98. Participation
typically has only a modest influence on variables such as employee productivity,
motivations, and job satisfaction. (True; Easy; p. 195) 99. If one is interested in
changing employee attitudes or in improving organizational performance,
representative participation would be a good choice. (False; Challenging; p. 195)
100. The two most common forms that representative participation takes are works
councils and board representatives. (True; Challenging; p. 196) 101. Participative
management has had a profound influence on employee productivity and motivation.
(False; Moderate; p. 196) 102. Board representatives are employees who sit on a
company’s board of directors and represent the interests of the firm’s employees.
(True; Moderate; p. 196) 103. Quality circles originated in the United States.
(True; Moderate; p. 196) 104. Quality circles have the authority to find problems,
assess alternative actions, and implement a solution. (False; Challenging; p. 196)
105. Quality circles have been a big success in businesses using them. (False;
Moderate; p. 196) 106. The lack of planning and top management commitment often
contributed to quality circle failures. (True; Challenging; p. 197) 107. ESOPs are
company-established benefit plans in which employees acquire stock as part of their
benefits. (True; Moderate; p. 197) 108. Research on ESOPs indicates they increase
employee satisfaction. (True; Challenging; p. 197) 109. Theory X is consistent with
participative management. (False; Easy; p. 198) 156 110. Theory X aligns with
autocratic management while Theory Y aligns with participative management. (True;
Moderate; p. 198) 111. Employee involvement programs could provide employees with
intrinsic motivation by increasing opportunities for growth and responsibility.
(True; Challenging; p. 198) 112. Employee involvement is compatible with ERG Theory
and efforts to achieve the affiliation need. (False; Challenging; p. 198) 113.
While American employees readily accepted employee involvement programs, managers
in India who tried to empower their employees were rated low by those employees and
the use of empowerment also negatively affected employee satisfaction. (True;
Moderate; p. 198)
114. In recent years, many organizations have dropped their quality circles and
replaced them with more comprehensive team-based structures. (True; Moderate; p.
198) Variable-Pay Programs 115. Both piece-rate and gainsharing plans are examples
of variable-pay compensation. (True; Easy; p. 199) 116. Variable-pay compensation
pays people for the time they spend on the job and seniority. (False; Easy; p. 199)
117. Piece-rate plans, wage incentives, profit sharing, bonuses, and gainsharing
are all forms of flexible benefits. (False; Moderate; p. 200) 118. Piece-rate wages
have been around for nearly a century. (True; Moderate; p. 200) 119. People who
sell peanuts at ball parks, keeping $.75 for every bag of peanuts they sell, are
being paid piece-rate wages. (True; Moderate; p. 200) 120. Variable-pay programs
turn part of an organization’s fixed labor costs into a variable cost. (True; Easy;
p. 200) 121. Employee compensation will decline if performance declines in
variable-pay programs. (True; Moderate; p. 200) 122. Piece-rate plans are based on
group productivity. (False; Moderate; p. 200) 157 123. Profit sharing may be paid
by direct cash outlay or as stock options. (True; Challenging; p. 201) 124.
Gainsharing and profit sharing are the same thing. (False; Easy; p. 200) 125. An
employee in a gainsharing plan can receive incentive awards even if the
organization isn’t profitable. (True; Moderate; p. 200) 126. Studies generally
support the fact that organizations with profit sharing plans have higher levels of
profitability than those without. (True; Moderate; p. 200) 127. An American
Management Association study of companies who used gainsharing found that
grievances, absences, and lost-time accidents decreased. (True; Moderate; p. 200)
128. Variable pay is probably most compatible with two-factor theory predictions.
(False; Moderate; p. 201) 129. One study of 400 manufacturing firms found that
those companies with wage incentive plans achieved 43 to 64 percent greater
productivity than those without such plans. (True; Moderate; p. 201) 130. The cost-
of-living raise is rapidly replacing the variable-pay concept. (False; Moderate; p.
201) 131. Group and organization-wide incentives reinforce personal goals. (False;
Moderate; p. 201) 132. Gainsharing’s popularity seems to be narrowly focused among
large, unionized manufacturing companies. (True; Challenging; p. 201) 133. Pay for
performance means the employees have to share in the risks as well as the rewards
of their employer’s business. (True; Moderate; p. 201) Skill-Based Pay Plans 134.
Skill-based pay encourages employees to concentrate on one or two highly desirable
skills. (False; Moderate; p. 202)
135. From management’s perspective, the greatest appeal of skill-based pay plans is
decreased payroll costs. (False; Challenging; p. 202) 136. Skill-based pay plans
encourage people to specialize. 158 (False; Moderate; p. 202) 137. The increased
use of skills as a basis for pay seems to work well for corporations facing
domestic competition, but is not so effective for firms facing foreign competition.
(False; Moderate; p. 204) Flexible Benefits 138. Traditional benefit packages were
designed for the typical employee of the 1950s; fewer than 10% of employees now fit
that stereotype, requiring an updated look at these benefits. (True; Moderate; p.
204) 139. Flexible spending plans allow employees to set aside up to the dollar
amount offered in the plan to pay for particular services. (True; Moderate; p. 204)
Special Issues in Motivation 140. Professionals are largely motivated by the
extrinsic, rather than the intrinsic, rewards of their jobs. (False; Moderate; p.
206) 141. The loyalty of professionals is more often to their profession than to
their employer. (True; Moderate; p. 206) 142. Promotions typically motivate
professionals. (False; Moderate; p. 206) 143. The terms “temporary workers” and
“contingent employees” are synonymous. (True; Moderate; p. 206) 144. Permanent
status is a motivating force for most temporary workers. (True; Moderate; p. 207)
145. Turnover rates of 200 percent are not uncommon for fast food restaurants like
McDonald’s. (True; Challenging; p. 208) 146. Because people vary in their tolerance
for ambiguity, careful selection of individuals who are asked to do highly
repetitive tasks can cut down on turnover. (True; Moderate; p. 208) 147. High pay
will usually lead to highly motivated workers in low-skilled, highly repetitious
jobs. (False; Moderate; p. 208) SCENARIO-BASED QUESTIONS Application of Management
by Objectives 159 You have just been hired by Computers-R-Us to institute a
management by objectives program. The sales people have asked you to explain the
program to them and to help them understand how it will affect them. 148. You want
to make sure that they understand the ingredients common to MBO programs. Which of
the following is not one of those ingredients? a. Goals should be general enough to
allow creativity. b. Decision making will be participative. c. Time periods will be
explicit. d. Feedback will be given on each employee’s performance. (a; Moderate;
pp. 190-191) 149. Which of the following is an example of an MBO objective? a.
Telephone orders should be processed promptly. b. All customers should be treated
well. c. Computer sales should be increased by six percent. d. Employees should
reduce absenteeism.
(c; Challenging; pp. 190-191) 150. The objectives for each individual will be set:
a. unilaterally by the supervisor. b. by the employee. c. by a committee of peers.
d. by the employee and his superior. (d; Moderate; pp. 190-191) Application of
Employee Recognition Programs You have read about the merits of employee
recognition programs. While you have no significant budget, you are willing to
implement a program in your department. 151. Consistent with reinforcement theory,
the recognition: a. must immediately follow the behavior to encourage repetition.
b. must be expensive. c. must come at some time during the same year as the
behavior. d. none of the above (a; Moderate; pp. 192-193) 152. Which of the
following might be the most successful? a. suggestions programs b. handwritten
notes c. bonuses d. plaques (a; Moderate; pp. 192-193) Application of Employee
Involvement Programs 160 Your supervisor has heard that employee involvement is
important and you have been instructed to research various methods of employee
involvement. You are supposed to help assist in the analysis of the probable
effects of each of the programs being considered. 153. If participative management
is used, you would predict that: a. it would be time consuming. b. commitment to
decisions would increase. c. it will provide intrinsic rewards for employees. d.
all of the above (d; Easy; pp. 195-197) 154. You have decided to let employees
select a small group to represent them and work with management. This is termed: a.
representative participation. b. an ESOP. c. quality circles. d. participative
management. (a; Moderate; pp. 195-197) 155. A group of employees will meet
regularly to discuss problems and recommend action. This group is a(n): a. ESOP. b.
works council. c. MBO cluster. d. quality circle. (d; Moderate; pp. 195-197)
Application of Skill-Based Pay Plans Amalgamated Industries manufactures parts for
furniture. Management has decided to change the method of payment to a skill-based
plan. You are interested in increasing your current compensation and see this as an
opportunity. 156. You should expect to earn more if you: a. volunteer for overtime.
b. increase your production. c. cross train in other jobs.
d. become a specialist. (c; Moderate; pp. 202-203) 157. The appeal from
management’s perspective is: a. protection of territory. b. flexibility. c.
elimination of workers. d. decreased payroll costs. (b; Challenging; pp. 202-203)
158. Which of the following is a disadvantage of skill-based pay plans? a.
Employees are less motivated. 161 b. Employees are more specialized. c. Employees
tend not to work as hard as before. d. Employers may pay for skills that they
aren’t using. (d; Moderate; pp. 202-203) Application of Flexible Benefits Your
workforce is diverse in terms of their needs for benefits. Jim is married with two
children and his wife is at home full time. Janet is single and supports her
widowed mother. Bob is married and his wife has a high-paying job. You decide that
you want to devise a benefits program which is tailored to their individual needs.
159. The best choice available is probably: a. traditional benefit programs. b. a
flexible benefit program. c. letting them purchase their own benefits. d. an ESOP.
(b; Easy; pp. 204-205) 160. The major drawback from the employee’s standpoint will
probably be: a. reduced flexibility. b. loss of benefits. c. costs of individual
benefits may go up, so fewer total benefits can be purchased. d. fewer benefits to
choose from. (c; Easy; pp. 204-205) 161. You should expect that the flexible
benefits program will be all of the following except: a. less expensive. b.
consistent with expectancy theory. c. more responsive to individual needs. d.
motivational. (a; Moderate; pp. 204-205) Application of Special Issues in
Motivation Allied Health Professionals employs many individuals and has discovered
that not all of their employees are motivated by the same things. They have decided
to develop different plans for the different segments of their workforce. The
segments that they have decided to concentrate on are health care professionals,
contingent or temporary workers, and nighttime janitorial staff. 162. The
physicians on your staff will probably be motivated by: a. ongoing opportunities
for education and training. b. autonomy. c. recognition. d. all of the above (d;
Moderate; pp. 206-208) 163. Contingency workers will probably be motivated by: 162
a. opportunities for training. b. getting a permanent position. c. freedom to
choose to remain temporary or to get a permanent position. d. all of the above
(d; Challenging; pp. 206-208) 164. The nighttime janitorial staff are generally low
skilled and would probably be motivated by: a. traditional approaches for
motivation. b. flexible work schedules. c. hiring teenagers and retirees. d.
nontraditional approaches to create a close and family-like work environment. (d;
Moderate; pp. 206-208) SHORT DISCUSSION QUESTIONS 165. What are the four
ingredients common to MBO programs? (Pages 190-191) The four ingredients common to
MBO programs are goal specificity, participative decision making, an explicit time
period, and performance feedback. The objectives in MBO should be concise
statements of expected accomplishments. The objectives in MBO are not unilaterally
set by the boss and then assigned to employees. MBO replaces imposed goals with
participatively determined goals. Each objective has a specific time period in
which it is to be completed. The final ingredient is feedback on performance. MBO
seeks to give continuous feedback on progress toward goals. 166. How can an
employer link employee recognition programs with reinforcement theory? (Page 193)
Consistent with reinforcement theory, rewarding a behavior with recognition
immediately following that behavior is likely to encourage its repetition. Since
most organizations are under severe cost pressures, recognition programs are
particularly attractive. 167. What is participative management? Give some examples
of its use in organizations. (Page 195) All participative management programs use
joint decision making. Subordinates share a significant degree of decision-making
power with their immediate superiors. Western Europe uses representative
participation. Quality circles and employee stock ownership plans have also become
more popular in the U.S. 168. Why would management want to share its decision-
making power with subordinates? (Page 195) As jobs have become more complex,
managers often don’t know everything their employees do. Thus, participation allows
those who know the most to contribute. The result can be better decisions. The
interdependence in tasks that employees often do today also requires consultation
with people in other departments and work units. This increases the need for teams,
committees, and group 163 meetings to resolve issues that affect them jointly.
Participation additionally increases commitment to decisions. People are less
likely to undermine a decision at the time of its implementation if they shared in
making that decision. Finally, participation provides intrinsic rewards for
employees. It can make their jobs more interesting and meaningful. 169. What is a
quality circle? (Page 196) A quality circle is a work group of eight to ten
employees and supervisors who have a shared area of responsibility. They meet
regularly to discuss their quality problems, investigate causes of the problems,
recommend solutions, and take corrective actions. Part of the quality circle
concept includes teaching participating employees group communication skills,
various quality strategies, and measurement and problem analysis techniques. 170.
What are skill-based pay plans? (Pages 202-203) Skill-based pay is an alternative
to job-based pay. Rather than having an individual’s job title define
his or her pay category, skill-based pay sets pay levels on the basis of how many
skills employees have or how many jobs they can do. It is also called competency-
based or knowledge-based pay. 171. How are flexible benefits linked with expectancy
theory? (Page 205) Giving all employees the same benefits assumes all employees
have the same needs. Yet this assumption is false. Thus, flexible benefits turn the
benefits’ expenditure into a motivator. Consistent with expectancy theory’s thesis
that organizational rewards should be linked to each individual employee’s goals,
flexible benefits individualize rewards by allowing each employee to choose the
compensation package that best satisfies his or her current needs. The fact that
flexible benefits can turn the traditional homogeneous benefit program into a
motivator was demonstrated at one company when 80 percent of the organization’s
employees changed their fixed benefit packages when a flexible plan was put into
effect. 172. What motivates professionals? (Page 206) Professionals have a strong
and long-term commitment to their field of expertise. Their loyalty is more often
to their profession than to their employer. To keep current in their field, they
need to regularly update their knowledge, and their commitment to their profession
means they rarely define their workweek in terms of 8 to 5 and five days a week.
Money and promotions typically are low on their priority list. Job challenge tends
to be ranked high. Their chief reward in their job is the work itself.
Professionals also value support. They want others to think what they’re working on
is important. And professionals place a high level of importance on having skill-
development opportunities. Provide them with ongoing challenging projects. Give
them autonomy to follow their interests and allow them to structure their work in
ways that they find productive. Reward them with educational opportunities that
allow them to keep current in their field. Also reward them with recognition and
ask questions and engage in other actions that demonstrate to them you’re sincerely
interested in what they are doing. 164 MEDIUM LENGTH DISCUSSION QUESTIONS 173.
Discuss Management by Objectives. What are the characteristics of MBO goals? (Pages
190-191) Management by Objectives emphasizes participatively set goals that are
tangible, verifiable, and measurable. The four ingredients common to MBO programs
are goal specificity, participative decision making, an explicit time period, and
performance feedback. The objectives in MBO should be concise statements of
expected accomplishments. The objectives in MBO are not unilaterally set by the
boss and then assigned to employees. MBO replaces imposed goals with
participatively determined goals. Each objective has a specific time period in
which it is to be completed. The final ingredient is feedback on performance. MBO
seeks to give continuous feedback on progress toward goals. 174. What is employee
involvement? Give three examples. (Pages 194-197) Employee involvement is defined
as a participative process that uses the entire capacity of employees and is
designed to encourage increased commitment to the organization’s success. The
underlying logic is that by involving workers in those decisions that affect them
and by increasing their autonomy and control over their work lives, employees will
become more motivated, more committed to the organization, more productive, and
more satisfied with their jobs. Examples of employee involvement include
participative management, representative participation, quality circles,
and employee stock ownership plans. Participative management programs use joint
decision making. Subordinates actually share a significant degree of decision-
making power with their immediate superiors. Representative participation refers to
worker representation by a small group of employees who actually participate on the
board. The goal is to redistribute power within an organization, putting labor on a
more equal footing with the interests of management and stockholders. A quality
circle is a group of eight to ten employees and supervisors who have a shared area
of responsibility. They meet regularly to discuss their quality problems,
investigate causes of the problems, recommend solutions, and take corrective
action. Employee stock ownership plans (ESOPs) are companyestablished benefit plans
in which employees acquire stock as part of their benefits. 175. Discuss flexible
benefit programs. What are the advantages and disadvantages to both employees and
employers? (Pages 204-205) Flexible benefit programs allow employees to pick
benefits that most meet their needs. The idea is to allow each employee to choose a
benefit package that is individually tailored to his or her own need and situation.
It replaces the traditional “one-benefit-plan-for-all” programs that dominated
organizations for more than 50 years. For employees, flexibility is attractive
because they can tailor their benefits and levels of coverage to their own needs.
The major drawback, from the employee’s standpoint, is that the costs of optional
benefits often go up, so fewer total benefits can be purchased. From the
organization’s standpoint, the good news is that flexible benefits often produce
savings. Many organizations use the introduction of flexible benefits to raise
deductibles and premiums. Moreover, once in place, costly increases in things like
health insurance premiums often have to be substantially absorbed by the employee.
The bad news for the organization is that these plans are more cumbersome for
management to oversee and administering the programs is often expensive. 165
COMPREHENSIVE ESSAYS 176. List and describe different variable-pay programs. Be
sure to include piece-rate plans, profitsharing plans, and gainsharing. (Pages 199-
201) Piece-rate plans, wage incentives, profit sharing, bonuses, and gainsharing
are all forms of variablepay programs. In piece-rate pay plans, workers are paid a
fixed sum for each unit of production completed. When an employee gets no base
salary and is paid only for what he or she produces, this is a pure piece-rate
plan. Bonuses can be paid exclusively to executives or to all employees. Many
companies now routinely reward production employees with bonuses in the thousands
of dollars when company profits improve. Profit-sharing plans are organization wide
programs that distribute compensation based on some established formula designed
around a company’s profitably. Gainsharing is a formula-based group incentive plan.
Improvements in group productivity determine the total amount of money that is to
be allocated. By focusing on productivity gains rather than profits, gainsharing
rewards specific behaviors that are less influenced by external factors. Employees
in a gainshairing plan can receive incentive awards even when the organization
isn’t profitable. 177. How might a manager motivate professional workers,
contingent workers, low-skilled service
workers, and people doing highly repetitive tasks? (Pages 206-208) Professionals
have a strong and long-term commitment to their field of expertise. Their loyalty
is more often to their profession than to their employer. To keep current in their
field, they need to regularly update their knowledge, and their commitment to their
profession means they rarely define their workweek in terms of 8 to 5 and five days
a week. Money and promotions typically are low on their priority list. Job
challenge tends to be ranked high. Their chief reward in their job is the work
itself. Professionals also value support. They want others to think what they’re
working on is important. And professionals place a high level of importance on
having skill-development opportunities. The following should be considered in
motivating professionals: Provide them with ongoing challenging projects. Give them
autonomy to follow their interests and allow them to structure their work in ways
that they find productive. Reward them with educational opportunities that allow
them to keep current in their field. Reward them with recognition. Ask questions
and engage in other actions that demonstrate to them you’re sincerely interested in
what they are doing.
Chapter 9 Understanding Work Teams

Why Have Work Teams Become So Popular? 1. Evidence suggests that teams typically
outperform individuals when the tasks being done: a. require multiple skills. b.
require judgment. c. require experience. d. all of the above 2. Which of the
following helps explain the current popularity of teams? b. Teams are a way to
better utilize employee talents. 3. Which of the following does not explain the
current popularity of teams? a. Teams outperform individuals when the tasks require
multiple skills. b. Teams enable organizations to better utilize employee talents.
c. Teams are a means to increase employee motivation. d. Teams do not require
employee participation in operating decisions. (d; Moderate; pp. 258-259) Teams vs.
Groups: What’s the Difference? 4. What is a work group? a. a group whose individual
efforts result in a performance that is greater than the sum of those individual
inputs b. a group that interacts primarily to share information and to make
decisions to help each member perform within his or her area of responsibility c. a
group of 10 to 15 people who take on responsibilities of their former supervisors
d. a group made up of members from across departmental lines (b; Challenging; p.
259) 5. A work team has one important aspect not found in a work group. This is: a.
energy. b. enthusiasm. c. synergy. d. objectives. (c; Moderate; p. 259) 196 6.
_____ is an attribute of work teams which results in a level of performance that is
greater than the sum of the individual inputs. a. Synergy b. Enthusiasm c. Energy
d. Initiative (a; Moderate; p. 259) Types of Teams
7. Which is not one of the most common types of teams? a. problem-solving b.
problem identification c. self-managed d. virtual (b; Easy; p. 259) 8. Teams of
employees who meet to discuss ways to improve quality, efficiency, and the work
environment are called: a. self-managed teams. b. unions. c. problem-solving teams.
d. cross-functional teams. (c; Easy; p. 259) 9. You are a member of a work team
whose goal is to improve the efficiency of the production process. Your team is
best described as: a. cross-functional. b. problem-solving. c. self-managed. d.
goal oriented. (b; Moderate; p. 259) 10. An early application of problem-solving
teams was: a. performance teams. b. linking teams. c. self-directed work teams. d.
quality circles. (d; Moderate; p. 259) 11. _____ were widely used in the 1980’s.
They were work teams of 8 to 10 employees and supervisors who had a shared area of
responsibility and met regularly to discuss their quality problems, investigate
causes of the problems, recommend solutions, and take corrective actions. a.
Quality circles b. Action groups c. Reengineering squads d. Self-managed teams (a;
Moderate; p. 259) 197 12. ____ teams go farther than problem-solving teams in
getting employees involved in workrelated decisions and processes. a. Problem
identification b. Self-managed c. Virtual d. Performance (b; Moderate; p. 259) 13.
Self-managed work teams generally: a. take on the responsibilities of their former
supervisors. b. meet weekly to discuss ways of improving quality, efficiency, and
the work environment. c. are from different work areas, but about the same
hierarchical level, and work together to accomplish tasks. d. are made up of people
from different levels of the organization. (a; Challenging; p. 259) 14. Self-
managed teams typically have ____ members. a. 2-3 b. 6-7 c. 8-9 d. 10-15 (d;
Moderate; p. 259) 15. Self-managed teams typically perform which of the following
responsibilities? a. planning and scheduling b. assigning tasks to members c.
taking action on problems d. all of the above
(d; Moderate; p. 259) 16. Overall, about _____ of U.S. employers now use self-
managed work teams. a. 10% b. 30% c. 50% d. 75% (b; Challenging; p. 260) 17. As a
result of using self-managed teams, a factory at Eaton Corporation’s Aeroquip
Global Hose Division was able to improve response time to customer concerns by: a.
50% b. 25% c. 75% d. 99% (d; Moderate; p. 260) 18. The research on the
effectiveness of self-managed work teams suggests that: a. individuals have lower
levels of job satisfaction. b. individuals overwhelmingly prefer to work on self-
managed work teams. c. productivity is lower for self-managed work teams. d.
absenteeism and turnover rates are higher on self-managed work teams. 198 (d;
Challenging; p. 260) 19. _____ teams are made up of employees from about the same
hierarchical level, but from different work areas, who come together to accomplish
a task. a. Problem-solving b. Self-managed c. Cross-functional d. Multifaceted (c;
Easy; p. 260) 20. A _____ is a temporary cross-functional team. a. quality circle
b. group c. task force d. TQM group (c; Moderate; p. 261) 21. _____ is (are)
composed of members from across departmental lines and is(are) an example of cross-
functional teams. a. Committees b. Virtual teams c. A TQM group d. Self-managed
work teams (a; Challenging; p. 261) 22. The Speed Team that generated
recommendations on how to speed up projects was a crossfunctional team used by: a.
IBM. b. Ford. c. Harley-Davidson. d. Jaguar. (c; Challenging; p. 261) 23.
_____teams are an effective way to allow people from diverse areas within an
organization to exchange information, develop new ideas and solve problems, and
coordinate complex projects. a. Self-managed b. Problem-solving c. Cross-functional
d. Multifaceted (c; Moderate; p. 261) 24. _____ teams allow people to collaborate
online. a. Self-managed
b. Cross-functional c. Problem-solving d. Virtual (d; Easy; p. 261) 199 25. While
most types of teams do their work face-to-face, _____ teams use computer
technology. a. virtual b. telecommuting c. outsourced d. functional (a; Moderate;
p. 261) 26. Which is not one of the three primary factors that differentiate
virtual teams from face-to-face teams? a. the absence of nonverbal and paraverbal
cues b. limited social context c. increased social rapport d. the ability to
overcome time and space constraints (c; Moderate; p. 261) 27. Which of the
following is not true about virtual teams? a. There is an absence of paraverbal
cues. b. Members report greater satisfaction with the group process. c. There is
limited social context. d. They are more task oriented. (b; Moderate; p. 261)
Beware! Teams Aren’t Always the Answer 28. Which of the following is true of
teamwork as compared to individual work? a. Teams have increased communication
demands. b. Teams have conflicts to be managed. c. Teams have meetings to be run.
d. all of the above (d; Moderate; p. 263) 29. The key components making up
effective teams can be subsumed into four categories. Which of the following is not
one of those four categories? a. work design b. goals c. contextual influences d.
process variables (b; Challenging; p. 263) 30. The context category of the team
effectiveness model includes: a. autonomy. b. ability. c. adequate resources. d.
conflict. (c; Challenging; Ex 9-3; p. 264) 200 31. Effective teams require which of
the following skills? a. problem-solving skills b. technical expertise c.
interpersonal skills d. all of the above (d; Easy; p. 264) 32. Team members with
good listening, feedback, and conflict resolution skills possess: a. technical
expertise. b. problem-solving skills. c. decision-making skills. d. interpersonal
skills. (d; Easy; p. 264) 33. One stream of research has identified potential team
roles the people prefer to play. The “creator” role is one who:
a. champions ideas. b. initiates creative ideas. c. provides structure. d.
coordinates and integrates. (b; Challenging; Ex 9-4; p. 266) 34. Of the nine key
roles on teams, the “promoter” is the group member most likely to: a. initiate
creative ideas. b. champion ideas after they are initiated. c. provide structure.
d. fight external battles. (b; Moderate; Ex 9-4; p. 266) 35. Which of the following
is not one of the nine potential team roles identified for successful teams? a.
organizer b. resource allocator c. controller d. maintainer (b; Easy; Exh. 9-4; p.
266) 36. You find that in a team situation you prefer to be the one who examines
for details and is concerned with enforcing rules and regulations. Your role is
called the: a. maintainer. b. linker. c. controller. d. promoter. (c; Moderate; Ex
9-4; p. 266) 37. Which team role provides structure? a. assessor b. organizer c.
maintainer d. controller (b; Challenging; Ex 9-4; p. 266) 201 38. People who hold
strong convictions about the way things should be done and fight the team’s battles
with outsiders while supporting internal team members are: a. controllers. b.
producers. c. maintainers. d. assessors. (c; Moderate; Ex 9-4; p. 266) 39. The most
effective teams tend to have _____ members. a. 3 to 5 b. 5 to 7 c. less than 10 d.
more than 12 (c; Challenging; p. 265) 40. There are four contextual factors that
appear to be most significantly related to team performance. Which of the following
is not one of those three factors? a. adequate resources b. effective communication
c. effective leadership d. a performance evaluation and reward system that reflects
team contributions. (b; Challenging; p. 266) 41. Which of the following statements
is true concerning the climate of trust? a. Interpersonal trust among team members
inhibits cooperation. b. Interpersonal trust among team members reduces the need to
monitor each other’s behavior. c. Interpersonal trust among team members bonds
members around the belief that others will take advantage of them if given the
opportunity. d. Interpersonal trust among team members increases members’ aversion
to risk. (b; Challenging; p. 267) 42. Process variables include all of the
following except:
a. climate of trust. b. member commitment to a common purpose. c. team efficacy. d.
minimizing social loafing. (a; Moderate; p. 268) 43. Successful teams translate
their _____ into specific, measurable, and realistic performance goals. a. roles b.
common purpose c. norms d. skills (b; Moderate; p. 268) 44. Effective teams have
confidence in themselves and believe they can succeed. This is termed: a. social
facilitation. b. goal congruence. c. social loafing. d. team efficacy. 202 (d;
Challenging; p. 268) 45. What can management do to increase team efficacy? a.
Provide measurable goals. b. Help the team achieve small successes. c. Limit time
spent in training. d. Ensure team goals are challenging. (b; Moderate; p. 268) 46.
Which type of conflict is almost always dysfunctional? a. task conflict b. efficacy
conflict c. relationship conflict d. resource conflict (c; Moderate; pp. 268-269)
47. Coasting on the group effort is termed: a. inconsistency. b. incompetence. c.
social loafing. d. cross-functional help. (c; Easy; p. 269) 48. Your company is
considering implementing work teams in your Mexico facility. You should find this
relatively easy because those employees will have strong _____ values. a. social b.
collectivist c. creative d. individualistic (b; Moderate; p. 269) 49. Which of the
following is not one of the options suggested that managers have for trying to turn
individuals into team players? a. selection b. goals c. training d. rewards (b;
Moderate; pp. 270-271) 50. When hiring job candidates who don’t have team skills,
which of the following is an option for managers? a. The candidates can undergo
training to make them into team players. b. The individual can be transferred to
another unit within the organization without teams. c. The candidate should not be
hired. d. all of the above (d; Challenging; p. 270)
203 51. Exercises which help individuals become team players would include
workshops in: a. negotiation. b. labor law. c. sexual harassment. d. power
distance. (a; Moderate; p. 270) Contemporary Issues In Managing Teams 52. The
essence of quality management is process improvement, and _____ is the linchpin of
process improvement. a. negotiation b. employee involvement c. an outside
consultant d. diversity (b; Moderate; p. 271) 53. The strongest case for diversity
on work teams is when these teams are engaged in _____ tasks. a. problem-solving
and decision-making b. manufacturing c. labor relations d. communication (a;
Moderate; p. 272) 54. Studies show that members of cohesive teams have: a. lower
satisfaction. b. higher attrition. c. lower absenteeism. d. greater diversity. (c;
Challenging; p. 272) 55. _____ is detrimental to group cohesiveness. a. Diversity
b. Education c. Teamwork d. Trust (a; Moderate; p. 272) 56. All of the following
are advantages of diversity except: a. increased flexibility. b. increased
creativity. c. multiple perspectives. d. increased cohesiveness. (d; Challenging;
Exh. 9-5; p. 272) 57. _____ teams are particularly prone to suffer from groupthink.
a. Diverse b. Mature c. Newly-formed d. Total quality management 204 (b; Moderate;
p. 273) 58. Your work team has been together for quite a long time and you feel
that they have become less efficient than they once were. In order to reinvigorate
the team you might: a. suggest that some team members retire. b. disband the team.
c. offer refresher or advanced training. d. offer individual incentives. (c;
Challenging; p. 273) 59. Which is not a suggestion for reinvigorating mature teams?
a. Prepare members to deal with the problems of maturity. b. Get younger members.
c. Offer refresher training. d. Offer advanced training.
(b; Challenging; p. 273) 60. Common characteristics of effective teams include all
of the following except: a. the work that members do provides freedom and autonomy.
b. the work that members do utilizes different skills and talents. c. the work that
members do has substantial impact on others. d. the work that members do is routine
to enable efficiency. (d; Moderate; p. 274) 61. Teams require individuals with high
scores on the personality characteristics of all the following except: a.
introversion. b. agreeableness. c. conscientiousness. d. emotional stability. (a;
Moderate; p. 276) TRUE/FALSE 62. Teams typically outperform individuals when the
tasks being done require multiple skills, judgment, and experience. (True; Easy; p.
257) 63. Teams tend to be less flexible and less responsive to changing events than
traditional departments. (False; Moderate; p. 257) 64. Teams are an effective means
for management to democratize their organizations. (True; Moderate; pp. 257-258)
Teams vs. Groups–What’s the Difference? 65. A work group is a group that interacts
primarily to share information and to make decisions to help each member perform
within his or her area of responsibility. (True; Easy; p. 258) 205 66. A work group
creates positive synergy. (False; Moderate; p. 258) 67. A work team generates
positive synergy while a work group does not. (True; Challenging; p. 258) 68. Work
groups engage in collective work that requires joint effort. (False; Challenging;
p. 258) 69. The extensive use of teams creates the potential for an organization to
generate greater outputs with no increase in inputs. (True; Easy; p. 258) 70.
Merely calling a group a team doesn’t automatically increase its performance.
(True; Moderate; p. 258) Types of Teams 71. The four most common forms of teams
are: problem-solving, self-managed, cross-functional, and virtual. (True; Moderate;
p. 259) 72. Problem-solving teams generally consist of 3 to 5 hourly employees from
the same department. (False; Challenging; p. 259) 73. Virtual teams were known as
quality circles in the 1980s. (False; Moderate; p. 259) 74. You are a member of a
team of eight individuals from the same department who meet for a few hours each
week to discuss ways of improving quality, efficiency, and the work environment.
You are a member of a self-managed work team. (False; Moderate; p. 259) 75. Quality
circles were an application of problem-solving teams. (True; Easy; p. 259) 76. A
self-managed work team takes on many of the responsibilities of their former
supervisors. (True; Moderate; p. 259) 77. Supervisory positions take on decreased
importance for a self-managed work team. (True; Moderate; pp. 259-260)
78. As a result of self-managed teams, supervisory positions may be eliminated.
(True; Challenging; p. 260) 79. Individuals on self-managed work teams report
higher levels of job satisfaction. (True; Moderate; p. 260) 80. Individuals on
self-managed work teams have lower absenteeism rates than employees in traditional
work structures. 206 (False; Challenging; p. 260) 81. Turnover rates are lower for
self-managed work teams than for employees working in traditional work structures.
(False; Moderate; p. 260) 82. Self-managed teams have flourished in Mexico due to
that culture’s low tolerance for ambiguity. (False; Moderate; p. 260) 83. Cross-
functional teams are made up of employees from about the same hierarchical level,
but from different work areas, who come together to accomplish a task. (True; Easy;
p. 261) 84. A task force is a temporary cross-functional team. (True; Moderate; p.
261) 85. The popularity of cross-discipline work teams was explored in the late
1930s. (False; Moderate; p. 261) 86. Harley-Davidson and IBM have successfully used
cross-functional teams to coordinate complex projects. (True; Easy; p. 261) 87. One
advantage of cross-functional teams is that they are easy to manage. (False;
Moderate; p. 261) 88. Electronic teams use computer technology to tie together
physically dispersed members in order to achieve a common goal. (False; Moderate;
p. 261) 89. Virtual teams can accomplish all the things that other teams do. (True;
Challenging; p. 261) 90. Virtual teams report less satisfaction with the group
interaction process than do face-to-face teams. (True; Moderate; p. 261) 91.
Verifone found that virtual teams provide strong recruiting inducements. (True;
Challenging; p. 261) Beware! Teams Aren’t Always the Answer 92. Teamwork takes more
time and often more resources than individual work. (True; Moderate; p. 262) 93.
Teams make sense when there is interdependence between tasks. (True; Moderate; p.
262) 94. The key components making up effective teams can be grouped into four
categories: work design, team composition, cohesion factors, and perceptual
influences. 207 (False; Challenging; p. 263) 95. To perform effectively, a team
requires three different types of skills – technical expertise, problem-solving and
decision-making skills, and interpersonal skills. (True; Moderate; p. 264) 96. On a
team, the role of the “creator” describes the person who analyzes decision options.
(False; Moderate; Ex 9-4; p. 266) 97. The role of the “linker” describes the person
within the work team who coordinates and integrates the work of team members.
(True; Moderate; Ex 9-4; p. 266) 98. Your analytical skills are very good and you
enjoy the role of integrating creative ideas for your group. You will find that you
are most effective in the role of the “promoter.” (False; Moderate; Ex 9-4; p. 266)
99. Susan is well organized and enjoys providing structure for the group. Her role
within the work team may be described as the “maintainer.” (False; Moderate; Ex 9-
4; p. 266) 100. The most effective teams have fewer than four members. (False;
Moderate; p. 265) 101. The purpose of the work team can be described as its vision
and this purpose is broader than specific goals. (True; Easy; p. 268) 102. Given
the option, many employees will select themselves out of team participation. (True;
Challenging; p. 266) 103. When selecting team members, individual preferences
should be considered as well as abilities, personalities, and skills. (True;
Moderate; p. 266) 104. Teams must receive the necessary support from management and
the larger organization if they are going to succeed in achieving their goals.
(True; Moderate; p. 267) 105. “Social loafing” is possible within a team because it
is not possible to identify individual contributions. (True; Easy; p. 269) Turning
Individuals Into Team Players 106. Teams fit well with countries that score high on
collectivism. (True; Easy; p. 269) 107. Canadians would have more difficulty using
work teams than the Japanese. (True; Easy; p. 269) 208 108. Communication and the
ability to sublimate one’s personal goals are important for individuals who are
members of work teams. (True; Easy; p. 269) 109. Work teams may be difficult for
American workers because they grow up learning the importance of individualism.
(True; Easy; p. 269) 110. Introducing work teams into new organizations will
generally be more difficult than introducing them into more mature organizations.
(False; Moderate; p. 269) 111. A large proportion of people raised on the
importance of individual accomplishment can be trained to become team players.
(True; Moderate; p. 270) 112. Intrinsic rewards may be higher for individuals in
work teams than for those who work alone. (True; Moderate; p. 271) 113. Competitive
reward structures reinforce the importance of collaboration in work teams. (False;
Moderate; p. 271) Contemporary Issues In Managing Teams 114. One of the central
characteristics of quality management is the use of teams. (True; Easy; p. 271)
115. Diversity typically provides fresh perspectives on issues but makes it more
difficult to unify the team and reach agreements. (True; Moderate; p. 272) 116.
Work force diversity makes work teams easier to manage. (False; Easy; p. 272) 117.
Studies show us that members of cohesive teams have greater satisfaction, lower
absenteeism, and lower attrition. (True; Moderate; p. 272)
118. Diversity may be detrimental to group cohesiveness. (True; Moderate; p. 272)
119. The positive value from diversity on a team diminishes over time. (True;
Moderate; p. 272) 120. Mature teams are particularly prone to suffer from
groupthink. (True; Moderate; p. 273) 209 SCENARIO-BASED QUESTIONS Application of
Types of Teams Recognizing that teams can do a variety of things, Joan has decided
to use a number of teams in her divisions. 121. Joan has created a team of seven
employees from the accounts payable department who meet for three hours a week to
discuss ways of improving quality, efficiency, and the work environment. This is an
example of a ____ team. a. problem-solving b. self-managed c. cross-functional d.
virtual (a; Challenging; pp. 259-261) 122. Joan has decided to create a team of
eleven employees from accounts receivable, give them the responsibility of their
former supervisor (including scheduling of work and evaluating each other’s
performance), and eliminate the former supervisor’s position. This is an example of
a _____ team. a. problem-solving b. self-managed c. cross-functional d. virtual (b;
Challenging; pp. 259-261) 123. To better accomplish specific tasks, Joan is using
task forces comprised of employees from different work areas. These are considered
temporary ____ teams. a. problem-solving b. self-managed c. cross-functional d.
virtual (c; Challenging; pp. 259-261) 124. Since Joan’s employees are located in
Europe, Asia, and North America, she has decided to use computer technology to tie
her employees together in order to achieve a common goal. This is an example of a
_____ team. a. problem-solving b. self-managed c. cross-functional d. virtual (d;
Challenging; pp. 259-261) Application of Key Roles on Teams You have been assigned
to a problem-solving team. You have never met any of the team members before but
you have been given their resumes and it is your job to match the team members to
the various roles that are needed for successful completion of your project. You
have gathered the following information about the members of your team: Iris is a
recent college graduate with a degree in mathematics. She is new to the company and
seems eager to please but inexperienced. James has been with the company for 210 15
years and has had experience in several areas within the company. He has a
reputation for being well
organized and is a strong defender of the company and its policies. He always
follows through and is able to coordinate the work of others. Betty is highly
motivated and intelligent. She has several advanced degrees and is able to view
situations from differing viewpoints. She is regarded as a good listener and as
being able to coordinate and integrate. You have decided that you are willing to
take on any group role that is handed to you but are more comfortable with
implementation of ideas than with initiating them. 125. The role which might best
suit Iris is that of: a. creator. b. assessor. c. linker. d. maintainer. (b;
Challenging; Ex 9-4; p. 266) 126. James is best suited to which role? a. producer
b. maintainer c. linker d. He is well suited to all of the above. (d; Challenging;
Ex 9-4; p. 266) 127. The person best suited for the role of adviser is probably: a.
Betty. b. James. c. Iris. d. you. (a; Challenging; Ex 9-4; p. 266) Application of
Diversity on Teams Suppose that you have been working for several years as a member
of a team that is very diverse. You have team members from several ethnic
backgrounds, of varying ages and from vastly different educational backgrounds. The
manager of your team has been promoted and you have just been introduced to your
new manager, Ms. Yuko. Ms. Yuko has been hired because it is believed that her
extensive experience in the industry will be an asset to your team. Ms. Yuko has
asked for your advice and help in understanding the problems associated with
managing a diverse team. 128. You should remind her that studies show: a. the
positive contribution that diversity makes to decision-making teams generally
declines over time. b. diverse groups are generally less creative. c. communication
should be easier because the group is diverse. d. the group may be less open to new
ideas because of its diversity. (a; Moderate; pp. 272-273) 129. Ms. Yuko should
expect the team to excel in _____ because of its diversity. a. its ability to
communicate b. its problem-solving and decision-making tasks c. its technical
skills d. its ability to reach an agreement 211 (b; Moderate; pp. 272-273) 130. Ms.
Yuko should expect that the use of teams will: a. produce greater employee
satisfaction. b. result in lower absenteeism. c. result in lower attrition. d. all
of the above (d; Challenging; pp. 272-273) Application of Mature Teams The team of
people with whom you work have been together for many years and you notice that
they
don’t always turn out the high-quality work that they did several years ago. You
have decided to try to find out what the problem is and help the team work together
like they did in the good old days. 131. You have discovered that your team is: a.
mature. b. lazy. c. diverse. d. lacking trust. (a; Easy; p. 273) 132. You have
decided that your work team meets the criteria for a “mature” team. You know that
mature teams are particularly prone to suffer from: a. lack of skills. b.
groupthink. c. lack of cohesiveness. d. complexity. (b; Moderate; p. 273) 133 Which
of the following is not a suggestion for reinvigorating mature teams? a. Prepare
members to deal with the problems of maturity. b. Encourage teams to view their
development as complete and focus on other issues. c. Offer refresher training. d.
Offer advanced training. (b; Moderate; p. 273) Application of Diversity in Teams
You have decided that you must diversify your work team. You have heard that
diversity promotes creativity and increases problem-solving skills. 134. You should
realize that diversity also may cause ambiguity and confusion in a work team.
(True; Moderate; pp. 272-273) 135. You should expect that the diversified team will
have reduced openness to new ideas. (False; Moderate; pp. 272-273) 136. You should
expect that cohesiveness will be higher on your new diverse team. (False; Moderate;
pp. 272-273) 212 SHORT DISCUSSION QUESTIONS 137. Why have teams become so popular?
(Page 257) Teams typically outperform individuals when the tasks being done require
multiple skills, judgment, and experience. As organizations have restructured
themselves to compete more effectively and efficiently, they have turned to teams
as a way to better utilize employee talents. Management has found that teams are
more flexible and responsive to changing events than are traditional departments or
other forms of permanent groupings. Teams have the capacity to quickly assemble,
deploy, refocus, and disband. Teams facilitate employee participation in operating
decisions. Teams, then, are an effective means for management to democratize their
organizations and increase employee motivation. 138. Discuss the difference between
a work group and a work team. (Page 258) A work group is a group that interacts
primarily to share information and to make decisions to help each member performs
within his or her area of responsibility. There is no positive synergy that would
create an overall level of performance that is greater than the sum of the inputs.
A work team generates positive synergy through coordinated effort. Their individual
efforts result in a level of performance that is greater than the sum of those
individual inputs. 139. Discuss self-managed work teams. (Pages 259-260) Self-
managed work teams are groups of employees (typically 10 to 15 in number) who
perform highly related or interdependent jobs and take on many of the
responsibilities of their former supervisors. Typically, this includes planning and
scheduling of work, assigning tasks to members, collective control over the pace of
work, making operating decisions, taking action on problems, and working with
suppliers and customers. Fully self-managed work teams even select their own
members and have the members evaluate each other’s performance. As a result,
supervisory positions take on decreased importance and may even be eliminated.
140. What is a cross-functional team? (Pages 260-261) Cross-functional teams are
made up of employees from about the same hierarchical level, but from different
work areas, who come together to accomplish a task. This is an effective means for
allowing people from diverse areas within an organization to exchange information,
develop new ideas and solve problems, and coordinate complex projects. 141. What is
a virtual team? (Page 261) Virtual teams use computer technology to tie together
physically dispersed members in order to achieve a common goal. They allow people
to collaborate online using communication links like wide-area networks, video
conferencing, or e-mail, whether they’re only a room away or continents apart.
Virtual teams can do all things that other teams do – share information, make
decisions, complete tasks. 213 142. What are the factors that make a virtual team
different from a face-to-face team? (Pages 260-261) The three primary factors that
differentiate virtual teams from face-to-face teams are the absence of paraverbal
and nonverbal cues, limited social context, and the ability to overcome time and
space constraints. 143. What is team efficacy? (Page 268) Effective teams have
confidence in themselves. They believe they can succeed. This is called team
efficacy. Teams that have been successful raise their beliefs about future success,
which in turn, motivates them to work harder. 144. Discuss strategies an
organization might use to turn individuals into team players. (Pages 270-271)
Managers have several options to turn individuals into team players. When hiring
team members, in addition to the technical skills required to fill the job, care
should be taken to ensure that candidates can fulfill their team roles as well as
technical requirements. A large proportion of people raised on the importance of
individual accomplishment can be trained to become team players. Training
specialists conduct exercises that allow employees to experience the satisfaction
that teamwork can provide. The reward system needs to be reworked to encourage
cooperative efforts rather than competitive ones. Promotions, pay raises, and other
forms of recognition should be given to individuals for how effective they are as a
collaborative team member. 145. Why are teams an essential part of quality
management? (Page 271) The essence of quality management is process improvement,
and employee involvement is the linchpin of process improvement. In other words,
quality management requires management to give employees the encouragement to share
ideas and act on what they suggest. Teams provide the natural vehicle for employees
to share ideas and to implement improvements. MEDIUM LENGTH DISCUSSION QUESTIONS
146. Teams can be classified based on their objective. Discuss the four most common
forms of work teams: problem-solving teams, self-managed teams, cross-functional
teams, and virtual teams. (Pages 259-261) Teams can do a variety of things. They
can make products, provide services, negotiate deals, coordinate projects, offer
advice, and make decisions. The four most common types of team are problem-solving
teams, self-managed teams, cross-functional teams, and virtual teams. On problem-
solving teams, members share ideas or offer suggestions on how work processes and
methods can be improved. They meet for a few hours each week to discuss ways of
improving quality, efficiency, and the work environment. Rarely, however, are these
teams given the authority to unilaterally implement any of their suggested actions.
214 Self- managed work teams are groups of employees (typically 10 to 15 in number)
who perform highly related or interdependent jobs and take on many of the
responsibilities of their former supervisors. Typically, this includes planning and
scheduling of work, assigning tasks to members, collective control over the pace of
work, making operating decisions, taking action on problems, and working with
suppliers and customers. Fully self-managed work teams even select their own
members and have the members evaluate each other’s performance. As a result,
supervisory positions take on decreased importance and may even be eliminated.
Cross-functional teams are made up of employees from about the same hierarchical
level, but from different work areas, who come together to accomplish a task. This
is an effective means for allowing people from diverse areas within an organization
to exchange information, develop new ideas and solve problems, and coordinate
complex projects. Virtual teams use computer technology to tie together physically
dispersed members in order to achieve a common goal. They allow people to
collaborate online using communication links like wide-area networks, video
conferencing, or e-mail, whether they’re only a room away or continents apart.
Virtual teams can do all things that other teams do – share information, make
decisions, complete tasks. 147. The team effectiveness model identifies four
categories of key components making up effective teams. What are these four
categories? Give examples of each category. (Pages 263-269) The key components
making up effective teams can be subsumed into four general categories. The first
category is work design. Work design characteristics enhance motivation and
increase team effectiveness. These characteristics motivate because they increase
members’ sense of responsibility and ownership over the work and because they make
the work more interesting to perform. The second relates to the team’s composition.
To perform effectively, a team requires three different types of skills – technical
expertise, problem-solving and decision-making skills, and interpersonal skills. No
team can achieve its performance potential without developing all three types of
skills. Third is the resources and contextual influences that make teams effective.
The four contextual factors that appear to be most significantly related to team
performance are the presence of adequate resources, effective leadership, a climate
of trust, and a performance evaluation and reward system that reflects team
contributions. Finally, process variables reflect the things that go on in the team
that influence effectiveness. These include member commitment to a common purpose,
establishment of specific team goals, team efficacy, a managed level of conflict,
and minimizing social loafing. 148. Discuss the advantages and disadvantages of
diversity on teams. (Exh. 9-5, Page 272) The strongest case for diversity on work
teams is when these teams are engaged in problem solving and decision making.
Heterogeneous teams bring multiple perspectives to the discussion, thus increasing
the likelihood that the team will identify creative or unique solutions.
Additionally, the lack of a common perspective usually means diverse teams spend
more time discussing issues, which decreases the changes that a weak alternative
will be chosen. However, this positive contribution that diversity makes to
decision-making teams undoubtedly declines over time. Diverse groups have more
difficulty working together and solving problems, but this dissipates with time.
Expect the value-added component of diverse teams to increase as members become
more familiar with each other and the team becomes more cohesive. Diversity is 215
detrimental to group cohesiveness. If the norms of the team are supportive of
diversity, then a team can maximize the value of heterogeneity while, at the same
time, achieving the benefits of high cohesiveness. This makes a strong case for
team members to participate in diversity training. COMPREHENSIVE ESSAYS 149. What
are some of the cautions to be aware of when using teams? (Pages 262-263) Teams
have increased communication demands, conflicts to be managed, and meetings to be
run. It has been suggested that three tests be applied to see if a team fits the
situation. First, can the work be done better by more than one person? A good
indicator is the complexity of the work and the need for different perspectives.
Simple tasks that don’t require diverse input are probably better left to
individuals. Second, does the work create a common purpose or set of goals for the
people in the group that is more than the aggregate of individual goals? The final
test to assess whether teams fit the situation is: Are the members of the group
interdependent? Teams make sense where there is interdependence between tasks;
where the success of the whole depends on the success of each one and the success
of each one depends on the success of the others. 150. What are some of the
problems that might be encountered by mature teams? What can be done to
reinvigorate a mature team? (Page 273) Effective teams can become stagnant. Initial
enthusiasm can give way to apathy. Time can diminish the positive value from
diverse perspectives as cohesiveness increases. Familiarity
breeds apathy. Success can lead to complacency. And maturity brings less openness
to novel ideas and innovation. Mature teams are particularly prone to suffer from
groupthink. Mature teams’ early successes are often due to having taken on easy
tasks. “But as time passes, the easy problems become solved and the team has to
begin to confront more difficult issues. Internal team processes no longer work
smoothly. Communication bogs down. Conflicts increase because problems are less
likely to have obvious solutions. And team performance can drop dramatically. Four
suggestions to reinvigorate mature teams are: prepare members to deal with the
problems of maturity, offer refresher training, offer advanced training, and
encourage teams to treat their development as a constant learning experience. 216

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Chapter 5 Perception and Individual Decision Making

MULTIPLE CHOICE What Is Perception and Why Is It Important?

26. Shortcuts in judging others include all of the following except:

(b; Moderate; p. 132)

62. The segment of the three-component model of creativity that encompasses

b. self-interest tends to win out.

(a; Moderate; p. 140)

b. intrinsic task motivation

Chapter 7 Motivation: From Concept to Applications

MULTIPLE CHOICE Management by Objectives 1. MBO emphasizes converting overall

Chapter 9 Understanding Work Teams

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