Chapter 1 What Is Organizational Behavior?

MULTIPLE CHOICE 1. Successful managers and entrepreneurs recognize that: a. technical knowledge is all that is needed for success. b. interpersonal skills are not important. c. technical skills are necessary, but insufficient, for succeeding in management. d. an understanding of human behavior does not impact effectiveness (c; Challenging; pp. 2-3) What Managers Do 2. Which one of the following is not considered an organization? a. church b. university c. a military unit d. all 45-year-old adults in a community (d; Easy; p. 4) 3. A(n) _____ is a consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals. a. organization b. unit c. team d. ethnic group (a; Moderate; p. 4) 4. The four management functions include all of the following except: a. controlling. b. planning. c. staffing. d. organizing. (c; Moderate; p. 4) 5. _____ includes defining an organizations goals and establishing an overall strategy for achieving these goals and developing a comprehensive hierarchy of plans to integrate and coordinate activities. a. Controlling b. Planning c. Leading d. Coordinating (b; Moderate; p. 4)

6.

The determination of how tasks are to be grouped is part of which management function? 1

a. planning b. leading c. controlling d. organizing (d; Easy; p. 4) 7. The organizing function includes a determination of which of the following? a. what tasks are to be done b. who is to do these tasks c. who reports to whom d. all of the above (d; Moderate; p. 4) 8. Every organization contains people, and it is managements job to direct and coordinate these people. This is the ______ function. a. planning b. leading c. controlling d. organizing (b; Moderate; p.4) 9. According to Henry Mintzberg, the ten managerial roles can be grouped into three categories. Which of the following is not one of these groups? a. concern with the interpersonal relationships b. the transfer of information c. decision making d. liaison roles (d; Challenging; Exh. 1-1; p. 6. ) 10. An example of Mintzbergs interpersonal management role is: a. spokesperson. b. leader. c. negotiator. d. monitor. (b; Moderate; Exh. 1-1; p. 6) 11. When a manager searches the organization and its environment for opportunities and initiates projects to bring about change, the manager is acting in which role? a. negotiator b. entrepreneur c. disturbance handler d. resource allocator (b; Challenging; Exh. 1-1; p. 6)

12.

Which of the following is not an essential management skill identified by Robert Katz? a. technical b. computer 2

c. human d. conceptual (b; Moderate; p. 5) 13. When managers have the mental ability to analyze and diagnose complex situations, they possess: a. technical skills. b. computer skills. c. human skills. d. conceptual skills. (d; Challenging; pp. 6-7 ) 14. Which one of the following would not be considered a human skill? a. completing accounting reports b. communicating c. resolving conflicts d. working as part of a team (a; Moderate; pp 5-6) 15. According to Luthans and his associates, which of the following is not considered a part of traditional management? a. interacting with outsiders b. decision making c. controlling d. planning (a; Moderate; p. 7) 16. Which of Luthans managerial activities involves socializing, politicking, and interacting with outsiders? a. traditional management b. communication c. human resource management d. networking (d; Challenging; p. 7 ) 17. According to Luthans, successful managers spent more of their time on _____ than on any other activity. a. traditional management b. human resource management c. networking d. communicating (c; Challenging; p. 8)

18.

A common thread running through the functions, roles, skills, and activities approaches to management recognizes the importance of: a. managing technology. b. managing people. c. politicking. 3

d. being efficient. (b; Moderate; p. 8) Enter Organizational Behavior 19. Organizational behavior is all of the following except: a. a field of study. b. an applied field. c. an intuitive analysis of human behavior. d. studying what people do in an organization. (c; Moderate; p. 8) 20. ______ is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations for the purpose of applying such knowledge toward improving an organizations effectiveness. a. Organizational development b. Management c. Organizational behavior d. People management (c; Easy; p. 8) 21. Which of the following is not a core topic of organizational behavior? a. motivation b. attitude development c. conflict d. computers (d; Easy; p. 8 ) 22. According to the text, the best approach for obtaining knowledge about human behavior is a. the common sense approach. b. an observational approach. c. a systematic approach. d. a theoretical approach. (c; Easy; p. 10) 23. A major theme in your textbook is that behavior is not: a. caused. b. random. c. consistent. d. predictable. (b; Easy; p. 9) 24. If we know how a person perceives a situation and what is important to him/her, then behavior is generally a. predictable. b. predetermined. c. uncontrollable. d. controllable. (a; Moderate; p. 9) 4

25.

Fundamental consistencies allow _____ of behavior. a. observation b. systematizing c. research d. predictability (d; Moderate; pp. 9-10) 26. Behavior is generally _____ and the _____ of behavior is a means to making reasonably accurate predictions. a. predetermined; observation b. predictable; systematic study c. controllable; theoretical application d. uncontrollable; systematic study (b; Moderate; p. 10) 27. _____ includes analyzing relationships, determining causes and effects, and basing conclusions on scientific evidence. a. Organizational behavior b. The observational approach to understanding organizational behavior c. A theoretical approach to organizational behavior d. A systematic study of organizational behavior (d; Moderate; p. 10) 28. In the study of OB, intuition is replaced by: a. systematic study. b. generalization. c. listening. d. prediction. (a; Easy; p. 10) Contributing Disciplines to the OB Field 29. Organizational behavior is built upon contributions from all of the following disciplines except: a. humanities. b. psychology. c. anthropology. d. political science. (a; Moderate; p. 11) 30. The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals is: a. psychiatry. b. psychology. c. sociology. d. political science. (b; Moderate; p. 12) 31. Which behavioral science discipline has made the most significant contribution to understanding 5

individual behavior? a. sociology b. social psychology c. psychology d. anthropology (c; Moderate; p. 12) 32. The OB topic of motivation has been most influenced by which behavioral science discipline? a. psychology b. social psychology c. sociology d. political science (a; Moderate; p. 12) 33. The most significant contribution to OB in the area of formal organization theory and structure has been made by: a. psychology. b. sociology. c. anthropology. d. political science. (b; Moderate; p. 12) 34. _____ studies people in relation to their fellow human beings. a. Psychology b. Sociology c. Anthropology d. Political science (b; Moderate; p. 12) 35. The science that focuses on the influence of people on one another is: a. psychology. b. anthropology. c. political science. d. social psychology. (d; Moderate; p. 12)

36.

One of the major areas receiving considerable investigation from social psychologists has been: a. change. b. motivation. c. job satisfaction. d. job stress. (a; Challenging; p. 12 ) 37. The OB subject of organizational culture has been most influenced by which behavioral science discipline? a. anthropology b. psychology 6

c. social psychology d. political science (a; Moderate; p. 12) 38. _____ has helped us understand differences in fundamental values, attitudes, and behavior between people in different countries. a. Anthropology b. Psychology c. Social psychology d. Political science (a; Challenging; p. 12) 39. Topics of study in political science include all of the following except: a. structuring of conflict. b. the social system in which individuals fill their roles. c. allocation of power. d. how people manipulate power for individual self interest. (b; Challenging; p. 12) There are Few Absolutes in OB 40. Which of the following is the best description of OBs current state? a. It is based on universal truths. b. It is based on contingencies. c. There is little disagreement among OB researchers and scholars. d. Cause-effect principles have been isolated which tend to apply to all situations. (b; Moderate; p. 13) Challenges and Opportunities for OB 41. Whereas _____ focuses on differences between people from different countries, _____ addresses differences among people within given countries. a. workforce diversity; globalization b. globalization; workforce diversity c. culture; diversity d. culturization; workforce diversity (b; Challenging; pp. 14-15) 42. ______ means that organizations are becoming more heterogeneous in terms of gender, race, and ethnicity. a. Globalization b. Workforce diversity c. Affirmative action d. Organizational culture (b; Easy; p. 15) 43. The ________ assumption is being replaced by one that recognizes and values _____. a. melting pot; differences b. melting pot; similarities c. diversity; differences d. heterogeneous; similarities 7

(a; Moderate; p. 15) 44. Which of the following is not true? a. Currently, 46 percent of the U.S. labor force are women. b. Minorities and immigrants make up 23 percent of the workforce. c. The male Caucasian working full time to support a non-employed wife and school-aged children is a minority. d. The proportion of minorities and women is shrinking. (d; Challenging; p. 15) 45. The implications of workforce diversity include all of the following except: a. managers have to shift their philosophy from treating everyone alike to recognizing differences. b. diversity training should be provided. c. revamping benefit programs is needed to accommodate the different needs of different employees. d. the same perceptions are used in decision making. (d; Challenging; p. 15) 46. _____ is a philosophy of management that is driven by the constant attainment of customer satisfaction through the continuous improvement of all organizational processes. a. MBO b. Quality management c. Reengineering d. Organizational behavior (b; Easy; p. 16) 47. Quality management requires _____ employee involvement. a. very little b. occasional c. extensive d. no (c; Moderate; p. 16)

48.

_____ asks managers to reconsider how work would be done and their organization structured if they were starting over. a. Process reengineering b. MBO c. TQM d. Diversity training (a; Easy; p. 16) 49. Predictions suggest there will be a labor shortage for at least another: a. 1-2 years. b. 4-5 years. c. 10-15 years. d. 20-25 years. (c; Moderate; p.17) 8

50.

The U.S. labor shortage is a function of: a. birth rates and labor participation rates. b. birth rates and mobility. c. brain drain. d. poor wages and benefits. (a; Moderate; p. 17) 51. Many employees have been led to retire early as a result of: a. expanded Social Security benefits. b. a healthy stock market. c. improved pension plans. d. all of the above (d; Challenging; p. 17) 52. The majority of employees today in developed countries work in: a. manufacturing jobs. b. service jobs. c. MNCs. d. government agencies. (b; Moderate; p. 18) 53. When managers put employees in charge of what they do, they are _____ the employees. a. reengineering b. empowering c. diversifying d. dehiring (b; Moderate; p. 19)

54.

Managing today can be described as long periods of ongoing _____ interrupted occasionally by short periods of _____. a. change; stability b. stability; change c. flexibility; rigidity d. rigidity; flexibility (a; Moderate; p. 19) 55. Which of the following has not contributed to blurring the lines between employees work life and personal life? a. the creation of global organizations b. communications technology allowing employees to work any time and from any place c. organizations asking employees to put in longer hours d. fewer dual-income couples (d; Easy; p. 20)

56.

Situations where an individual is required to define right and wrong conduct are termed: a. diversity issues. b. human resource problems. c. ethical dilemmas. d. loyalty oaths. (c; Easy; p. 21) Coming Attractions: Developing an OB Model 57. A model is a(an): a. abstraction of reality. b. response that is affected by an independent variable. c. independent variable. d. real-world scenario. (a; Easy; p. 22) 58. Primary dependent variables in OB include: a. productivity. b. absenteeism. c. job satisfaction. d. all of the above (d; Easy; p. 23) 59. _____ is achievement of goals. a. Efficiency b. Effectiveness c. Productivity d. Motivation (b; Easy; p. 23)

60.

Which of the following is an example of being an efficient company or employee? a. operating a hospital at the lowest possible cost but still yielding a high profit b. being the most pleasant real estate broker in the southeast c. as a telemarketer, making the required number of calls at the end of the day d. a sales person who acquires the most clients of anyone in the company (a; Challenging; p. 23) 61. Sears trained employees to improve the employee-customer interaction to ultimately: a. generate additional revenue. b. decrease returns. c. improve repeat customer business. d. none of the above (a; Moderate; p. 23) 62. _____ is discretionary behavior that is not part of an employees formal job requirement, but that promotes the effective functioning of the organization. a. Productivity b. Motivation 10

c. Organizational citizenship d. Organizational behavior (c; Moderate; p. 25) 63. Individual-level independent variables include: a. technology. b. organizational culture. c. perception. d. human resource policy. (c; Moderate; pp. 25-26) 64. ________ is the voluntary and involuntary permanent withdrawal from an organization. a. Absenteeism b. Turnover c. Downsizing d. Exit (b; Easy; p. 24) TRUE/FALSE 65. The single biggest reason for the failure of managers is poor interpersonal skills. (True; Easy; p. 3) 66. While managers must be technically competent, technical knowledge is not enough for success. (True; Moderate; p. 3) What Managers Do 67. Managers get things done through other people. (True; Easy; p. 4) 68. The term organization, as used in your textbook, is meant to include business firms but exclude government agencies. (False; Easy; p. 4) 69. Managers may be referred to as administrators in not-for-profit organizations. (True; Moderate; p. 4) 70. Henri Fayol listed five management functions: planning, organizing, commanding, coordinating, and controlling. (True; Moderate; p. 4) 71. Modern theorists have condensed Fayols five management functions down to four: planning, organizing, commanding, and controlling. (False; Moderate; p. 4) 72. The controlling function includes the determination of what tasks are to be done. (False; Moderate; p. 4) 73. Monitoring, comparing, and potential correcting is what is meant by the controlling process. (True; Moderate; p. 4) 11

74.

Mintzberg concluded that managers perform ten different highly-interrelated roles, or sets of behaviors, attributable to their jobs. (True; Challenging; p. 5) 75. The role of spokesperson is an example of an informational role. (True; Easy; p. 5) 76. As resource allocators, managers are responsible for allocating human, physical, and monetary resources. (True; Moderate; Exh. 1-1; p. 6) 77. When managers initiate and oversee new projects that will improve their organizations performance, they are acting in the capacity of an entrepreneur, an example of an informational role. (False; Moderate; Exh. 1-1; p. 6) 78. Robert Katz has identified three essential management skills: technical, human, and conceptual. (True; Moderate; pp. 5-6) 79. According to Katz, human skills encompass the ability to apply specialized knowledge or expertise. (False; Moderate; pp. 5-6) 80. The ability to analyze and diagnose complex situations is referred to as an individuals conceptual skills. (True; Easy; pp. 6-7) 81. According to Luthans and his associates, those managers who are most successful will spend more time networking than those managers who are considered most effective. (True; Challenging; Exh. 1-2; p. 7) 82. Research conducted by Luthans supports the theory that promotions are based on performance. (False; Moderate; p. 7) 83. Luthans research indicates that among effective managers, communication made the largest relative contribution and networking the least. (True; Challenging; Exh. 1-2; pp. 7-8) 84. Managers need to develop their people skills if they are going to be effective and successful. (True; Moderate; p. 8) Enter Organizational Behavior 85. Organizational behavior is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organizations effectiveness. (True; Moderate; p. 8) 86. Organizational behavior is concerned with the study of what people do in an organization and 12

how that behavior affects the performance of the organization. (True; Moderate; p. 8) 87. Behavior is generally predictable, and the systematic study of behavior is a means to making reasonably accurate predictions. (True; Moderate; p. 10) 88. Many peoples views on human behavior are based on intuition. (True; Easy; pp. 9-10) 89. It is the consistencies in behavior that make prediction possible. (True; Moderate; p. 9) 90. Regardless of appearances, people usually intend their behavior to be rational. (True; Moderate; p. 9) 91. Anything you learn in an unsystematic way is incorrect. (False; Moderate; p. 10) 92. Intuition is gut feelings about why I do what I do. (True; Easy; p. 10) Contributing Disciplines to the OB Field 93. OB is an applied behavioral science that is built upon contributions from a number of behavioral disciplines. (True; Easy; p. 11) 94. Learning, perception, and personality have been OB topics whose contributions have generally come from psychology. (True; Moderate; Exh. 1-3; p. 11) 95. What psychology is to the individual, sociology is to the group. (True; Moderate; p. 12) 96. Social psychology is an area within psychology, blending concepts from both psychology and political science. (False; Moderate; p.12) 97. Anthropology has helped us understand differences in values and attitudes between people in different countries. (True; Moderate; p. 12) 98. Conflict and power have been major topics of concern to political scientists. (True; Easy; Exh. 1-3; p. 12) There are Few Absolutes in OB 99. There are many simple and universal principles that explain organizational behavior. (False; Easy; p. 13) 13

100.

OB researchers cannot offers reasonably accurate explanations of human behavior since people act very differently in the same situation. (False; Moderate; p. 13) Challenges and Opportunities for OB 101. As the world has become a global village, managers have to become capable of working with people from different cultures. (True; Moderate; p. 14) 102. Workforce diversity means that organizations are becoming more homogeneous in terms of gender, race, and ethnicity. (False; Moderate; p. 15) 103. People must set aside their cultural values when they come to work. (False; Moderate; p. 15) 104. 46 percent of the U.S. labor force are women. (True; Challenging; p. 15) 105. Diversity, if positively managed, can increase creativity and innovation in organizations. (True; Easy; p. 15) 106. A philosophy of management that is driven by the constant attainment of customer satisfaction through the continuous improvement of all organizational processes is termed reengineering. (False; Moderate; p. 16) 107. Quality management has an intense focus on the customer and a goal of employee empowerment. (True; Easy; p. 16) 108. Putting employees in charge of what they do is termed reengineering. (False; Easy; p. 16) 109. Process reengineering asks, How would we do things around here if we were starting over from scratch? (True; Easy; p. 16) 110. In tight labor markets, those managers who dont understand human behavior risk having no one to manage. (True; Moderate; p. 17) 111. An employee who is empowered is given greater opportunity to determine how she does her job. (True; Moderate; p. 19) 112. Theres a blurring between the roles of managers and workers. (True; Moderate; p. 20) 113. Managing today is described as long periods of ongoing change, interrupted occasionally by short periods of stability. (True; Moderate; p. 21)

14

114.

Todays managers and employees must learn to cope with temporariness learning to live with flexibility, spontaneity, and unpredictability. (True; Moderate; p. 19) 115. OB has little to offer in stimulating employee creativity and tolerance for change. (False; Challenging; p. 20) 116. Your firm is experiencing lower than normal profits. You realize that you should write off some questionable accounts, but your supervisor suggests that you wait until next year. This is a modern example of an ethical dilemma. (True; Easy; p. 21) Coming Attractions: Developing an OB Model 117. There are three levels of analysis in OB, and, as we move from the individual level to the group level to the organization systems level, we add systematically to our understanding of behavior in organizations. (True; Challenging; p.22) 118. The key factors you want to explain or predict in a model are termed independent variables. (False; Moderate; p. 23) 119. Typical dependent variables in organizational behavior are productivity, absenteeism, and job satisfaction. (True; Moderate; p. 23) 120. Organizational behavior models generally assume job satisfaction to be an independent variable. (False; Moderate; p. 23) 121. An organization is productive if it achieves its goals and does so by transferring inputs to outputs at the lowest cost. (True; Moderate; p. 23) 122. The annual cost of absenteeism in the U.S. is estimated at over $40 billion. (True; Challenging; p. 24) 123. A conservative estimate of the cost of recruiting, selecting, and training an employee is about $25,000. (False; Challenging; p. 24) 124. Reasonable levels of employee-initiated turnover facilitate organizational flexibility and employee independence. (True; Challenging; p. 24) 125. The difference between the amount of rewards workers receive and the amount they believe they should receive is termed job satisfaction. (True; Moderate; p. 25) 126. Job satisfaction represents an attitude rather than a behavior. (True; Moderate; p. 25) 15

127.

Independent group level variables studied in organizational behavior include perception, learning, and motivation. (False; Moderate; p. 25) SCENARIO-BASED QUESTIONS Application of What Managers Do Joseph Wood is a manager at the XYZ Company. He performs all the management functions as condensed from Henri Fayols work. 128. When Mr. Wood estimates an overall strategy for achieving his departments goals, he is performing the _____ function. a. planning b. organizing c. leading d. controlling (a; Moderate; p. 4)

129.

When Mr. Wood determines what tasks are to be performed by his employees and how they are to be grouped, he is performing the ____ function. a. planning b. organizing c. leading d. controlling (b; Moderate; p. 4) 130. When Mr. Wood motivates his employees and attempts to resolve conflicts among department members, he is performing the _____ function. a. planning b. organizing c. leading d. controlling (c; Moderate; p. 4) 131. When Mr. Wood compares projected sales to actual sales in his department, he is performing the _____ function. a. planning b. organizing c. leading d. controlling (d; Moderate; p. 4) Application of Contributing Disciplines to the OB Field You are bringing together faculty from different behavioral disciplines to author a new textbook in organizational behavior. You have faculty from the fields of psychology, sociology, social psychology, 16

anthropology, and political science. 132. You should expect that the faculty member from _____ will probably contribute information about intergroup behavior. a. sociology b. psychology c. social psychology d. anthropology (a; Challenging; p. 12) 133. Information on which of the following would probably not be a contribution from the faculty member from political science? a. conflict b. power c. organizational change d. intraorganizational politics (c; Challenging; p. 12)

134.

To whom would you expect to address issues of communication? a. the psychologist b. the anthropologist c. the political scientist d. the social psychologist (d; Challenging; p. 12) 135. You would expect the faculty member from _____ to furnish information about personality, learning, and motivation. a. sociology b. psychology c. anthropology d. political science (b; Moderate; p. 12) Application of Quality Management You are an employee of Acme, Inc. who has just been approached by your manager with a new philosophy that management wishes to institute. Your manager is stressing that he wants your involvement and that the emphasis is going to be on the customer and continual improvement. 136. You would probably believe that management is trying to implement: a. quality management. b. MBO. c. process reengineering. d. organizational behavior. (a; Moderate; p. 16) 137. As part of the program, you should expect to see all of the following except: a. improvement in quality. 17

b. empowerment of employees. c. emphasis on individual achievement. d. accurate measurement. (c; Moderate; p. 16) 138. You should expect your job to change in which of the following ways? a. more imposed rules from management b. more measurement of performance variables c. more free time d. less real employee power (b; Moderate; p. 16) Application of Developing an OB Model Allison and Gail both are studying for a final exam. Both students have a goal of making a grade of 91 or better. Gail studied 6 hours and made a grade of 92. Allison studied for 9 hours and also made a grade of 92. 139. Which of the students was effective? a. only Gail b. only Allison c. neither Gail nor Allison d. both Gail and Allison (d; Moderate; p. 23) 140. Which of the following statements is true? a. Gail is more efficient than Allison. b. Allison is more efficient than Gail. c. Gail is more effective than Allison. d. Allison is more effective than Gail. (a; Moderate; p. 23) 141. Which of the students was more productive? a. Gail b. Allison c. Neither Gail nor Allison was productive. d. It is impossible to tell from the information given. (a; Moderate; p. 23) SHORT DISCUSSION QUESTIONS 142. Discuss the four management functions described by your text. (Page 4) The four management functions as condensed from Henri Fayol are planning, organizing, leading, and controlling. The planning function encompasses defining an organizations goals, establishing an overall strategy for achieving those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities. Organizing includes the determination of what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to 18

whom, and where decisions are to be made. The leading function involves motivating employees, directing activities of others, selecting the most effective communication channels, and resolving conflicts among members. Controlling involves monitoring, comparing, and potential correcting to get the organization back on track. 143. Why is it important to replace intuition with systematic study in our attempts to understand behavior within organizations? (Pages 8-10) It is important to replace intuition with systematic study in our attempts to understand behavior within organizations to help uncover important facts and relationships. This will provide a base from which more accurate predictions of behavior can be made. That is, we can improve our predictive ability by replacing intuitive opinions with a more systematic approach. Systematic study looks at relationships, attempting to attribute causes and effects, and basing conclusions on scientific evidence. This helps to explain and predict behavior. 144. How have the fields of psychology and sociology contributed to our understanding of organizational behavior? (Page 12) Psychology seeks to measure, explain, and change the behavior of humans. Contributions have been made by learning theorists, personality theorists, counseling psychologists, and industrial and organizational psychologists. Contributions have been made in learning, perception, personality, emotions, training, leadership effectiveness, motivation, job satisfaction, decisionmaking processes, performance appraisals, attitude measurement, employee selection techniques, work design, and job stress. Sociology studies people in relation to their fellow human beings. The greatest contributions by sociologists have been in the study of group behavior in organizations, group dynamics, design of work teams, organizational culture, formal organization theory, organizational structure, organizational technology, communications, power, and conflict. 145. How does globalization affect a managers people skills? (Page 14) Globalization affects a managers people skills in at least two ways. First, managers are increasingly likely to find themselves in a foreign assignment. Once there, it will be necessary to manage a work force that is likely to be very different in needs, aspirations, and attitudes from the ones managed back home. Second, managers are going to find themselves working with bosses, peers, and other employees who were born and raised in different cultures. To work effectively with these people, managers will need to understand their culture, how it has shaped them, and how to adapt the management style to their differences. 146. Explain the term workforce diversity. (Page 15) Workforce diversity means that organizations are becoming more heterogeneous in terms of gender, race, and ethnicity. It also includes the physically disabled, gays and lesbians, and the elderly. 147. What is the difference between effectiveness and efficiency? 19

(Page 25) Productivity implies a concern for both effectiveness and efficiency. A business firm is effective when it attains its sales or market share goals, but its productivity also depends on achieving those goals efficiently. Popular measures of organizational efficiency include return on investment, profit per dollar of sales, and output per hour. 148. Discuss the U.S. labor shortage. (Page 17) The U.S. labor shortage is a function of two factors birth rates and labor participation rates. The problem becomes severe around 2006, when the major exodus of Boomers from the workplace begins. New entrants to the workforce from foreign countries will not do much to correct the supply shortage. While women provided a new supply of talented and skilled workers, this source has now been tapped. The combination of the smaller Gen-X population, the already high participation rate of women in the work force, and early retirements will lead to a significantly smaller future labor pool from which employers can hire. MEDIUM LENGTH DISCUSSION QUESTIONS 149. Briefly discuss three of the challenges facing contemporary managers. (Pages 14-16) Three challenges that managers are facing today are globalization, managing workforce diversity, and improving quality and productivity. Organizations are no longer constrained by national borders. Globalization affects a managers people skills in at least two ways. First, you are likely to find yourself in a foreign assignment managing people from different cultures. Second, you are likely to work with bosses, peers, and other employees who were born and raised in different cultures. One of the biggest challenges is adapting to people who are different. This is workforce diversity. Whereas globalization focuses on differences between people from different countries, workforce diversity addresses differences among people within given countries. More managers are having to improve their organizations productivity and the quality of the products and services they offer. Toward quality and productivity, they are implementing programs such as quality management ad process reengineering programs that require extensive employee involvement. 150. Explain quality management and process reengineering. (Pages 16-17) Quality management and process reengineering help improve quality and productivity in organizations. Quality management is driven by the constant attainment of customer satisfaction through the continuous improvement of all organizational processes. It has implications for OB because it requires employees to rethink what they do and become more involved in workplace decisions. Process reengineering asks managers to reconsider how work would be done and their organization structured if they were starting over. 151. What independent and dependent variables are usually identified for construction of an OB model? 20

(Pages 23-26) Dependent variables are the key factors that you want to explain or predict and that are affected by some other factor. Scholars have historically emphasized productivity, absenteeism, turnover, and job satisfaction. Today, organizational citizenship has been added to this list. The independent variables are divided into individual-level, group-level, and organization systems level variables. The individual-level variables include biographical characteristics, ability, values, attitudes, personality, emotions, perception, individual decision making, learning, and motivation. Group-level variables include communication, leadership, power, and politics. Organization systems level variables include structure, work processes, human resource policies, and practices. COMPREHENSIVE ESSAYS 152. Discuss Mintzbergs ten different roles. Group them as being primarily concerned with interpersonal relationships, the transfer of information, and decision making. (Exh. 1-1; Pages 4-5) Mintzberg identified ten managerial roles. The interpersonal roles include figurehead, leadership, and liaison roles. Performing ceremonial and symbolic duties is the figurehead role. The leadership role includes hiring, training, motivating, and disciplining employees. The liaison role involves contacting outsiders who provide the manager with information. The information roles include monitor, disseminator, and spokesperson. Collecting information from organizations and institutions outside their own is the monitor role. The disseminator role involves acting as a conduit to transmit information to organizational members. The spokesperson role occurs when managers represent their organization to outsiders. Decisional roles include entrepreneur, disturbance handler, resource allocator, and negotiator. In the entrepreneur role, managers initiate and oversee new projects that will improve their organizations performance. As disturbance handlers, managers take corrective action in response to unforeseen problems. As resource allocators, managers are responsible for allocating human, physical, and monetary resources. Managers perform a negotiator role, in which they discuss issues and bargain with other units to gain advantages for their own unit. 153. Organizational behavior is an applied behavioral science built upon contributions from a number of different disciplines. What are these disciplines and what are the contributions of each discipline? Be complete in your response and include five different behavioral science disciplines. (Exh. 1-3; Pages 11-12) Organizational behavior has been built upon the contributions of psychology, sociology, social psychology, anthropology, and political science. Psychology has contributed to learning, perception, personality, emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction, decision-making processes, performance appraisals, attitude measurement, employee selection techniques, work design, and job stress. Sociology has contributed through the study of formal and complex organizations including group dynamics, design of work teams, organizational culture, formal organization theory and structure, organizational technology, communications, power, and conflict. Social psychology has contributed in the areas of measuring, understanding, and changing attitudes; communication patterns; building trust; the ways in which group activities can satisfy needs; and group decisionmaking processes. Anthropology has contributed to an understanding of organizational culture, organizational environments, and differences between national cultures. Political science has 21

contributed to an understanding of structuring of conflict, allocation of power, and how people manipulate power for individual self-interest. 154. How have the roles of managers and workers been blurred? (Pages 20-21) The roles of managers and workers have been blurred as the relationship between the two has been reshaped. Managers are being called coaches, advisers, sponsors, or facilitators in some organizations. Employees are now called associates. Decision making is being pushed down to the operating level, where workers are being given the freedom to make choices about schedules and procedures and to solve work-related problems. Managers are going considerably further by allowing employees full control of their work. More self-managed teams are being used where workers operate largely without bosses and managers are empowering employees.

155. What is an ethical dilemma? How are organizations responding to these dilemmas? (Pages 21-22) An ethical dilemma is a situation in which employees are required to define right and wrong conduct. Dilemmas include whether to blow the whistle, whether they should follow orders with which they dont personally agree, whether they should give an inflated performance evaluation to an employee whom they like, knowing that such an evaluation could save that employees job, or whether they should allow themselves to play politics in the organization if it will help their career advancement. These ethical dilemmas result from the blurring of the line differentiating right from wrong. Managers and their organizations are responding to this problem from a number of directions. They are writing and distributing codes of ethics to guide employees through ethical dilemmas. They are offering seminars, workshops, and training programs to try to improve ethical behaviors. They are also using in-house advisors to provide assistance and they are creating protection mechanisms for employees who reveal internal unethical practices. 156. Define turnover. Why is it of concern to organizations? (Page 24) Turnover is the voluntary and involuntary permanent withdrawal from an organization. A high turnover rate results in increased recruiting, selection, and training costs which are quite significant. A high rate of turnover can also disrupt the efficient running of an organization when knowledgeable and experienced personnel leave and replacements must be found and prepared to assume positions of responsibility. However, reasonable levels of employee-initiated turnover facilitate organization flexibility and employee independence, and they can lessen the need for management-initiated layoffs. Unfortunately, turnover often involves the loss of people the organization doesnt want to lose.

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