Exam 2 Flashcards
According to the text, an ethical framework has four primary components: 1) duties, 2) rights, 3) standards of excellence, and 4) commitments.
True
The community principle of ethics involves making decisions that you would be publicly proud of.
False
The principles, values, and beliefs that are widely considered universal are referred to as the standard level of ethics.
False
Escalation is an increase in an organizational behavior as a direct response to a competitor’s behavior.
True
An externality is a cost (negative) or benefit (positive) that occurs within the direct exchange between an organization and its stakeholders.
False
Ethics is as simple as “doing the right thing.”
False
The first stage of moral development is called preconventional.
True
Stakeholders can be either internal or external to the organization.
True
___________ may be described as the moral principles, values, and beliefs that govern group or individual behavior according to what is right or wrong.
Ethics
Which of the following is the final stage of moral development?
Postconventional
The more healthy options that one fast food chain offers, the more healthy options other fast food chains have to offer. This is an example of which of the following concepts?
Escalation
When managers make a principles-based decision that follows both the letter and the spirit of the law, they are applying which of the following?
A legal principle
A decision that provides the greatest good to the greatest number (or the least harm to the fewest number) is based on:
Utilitarian principle
By protecting human health, safety, and privacy, one is upholding which of the following Codes of Conduct Standards?
Dignity
When an organization supports proactive behaviors that are beneficial to society, the organization is engaging in:
social responsibility
Articles of incorporation is a legal agreement between shareholders and management that determines the ______________ of management in operating the organization.
fiduciary duty
When a company accepts responsibility for a situation but then only does the minimum required, it is using which of the following approaches to social responsibility?
Defensive
All of the following are domains of ethical decision making EXCEPT:
principles
A situation in which the company’s culture impact employee behavior in ways that are consistent with the organization’s mission and values would be an example of ______________
values-based
A(n) _____________ approach is when an organization accepts responsibility and takes action in response to societal pressures.
accommodative
According to the text, there are seven steps in the decision making process.
True
When a decision is made based on beliefs or assumptions despite evidence to the contrary, it is known as an intuitive decision.
False
Groupthink is the ability for a team to synthesize their thoughts into a more effective alternative path.
False
Evaluating alternatives is the third step in the decision-making process.
False
The degree to which the outcomes of an alternative can be predicted is referred to as risk.
True
A decision based on preestablished rules in response to a recurring situation is called:
a programmed decision
Which of the following is the first step in the decision-making process?
Identify the problem
Managers rarely have all the information they need to make the best possible decision where information about the situation, goals, or criteria is incomplete or can be interpreted in multiple ways. This is referred to as:
ambiguity
A method of problem analysis that isolates the variables in a system that can truly be addressed through management intervention is known as:
policy-based analysis
Research suggests that group brainstorming is a particularly effective technique for dealing with a problem that is:
complex and cross-functional
Basing decisions on beliefs or assumptions despite evidence to the contrary is:
prior hypothesis bias
When decision making is limited by time, cognitive abilities, and available information, it is known as:
bounded rationality
Which of the following can become problematic when implementing decision alternatives?
illusion of control
Which of the following is NOT one of the steps in the process for feedback and measurement results?
Identify the problem
What is the last step in the seven-step decision-making process?
Solicit feedback and analyze results
The decision that is the best possible option given all the needed information is known as a(n):
optimum decision
The method of decision making in which a group of experts propose and question ideas until
a consensus is reached is the:
Delphi technique
A plan that interprets an organizational strategy into a market or community-based
opportunity for division or departmental managers is a business plan.
True
Key performance indicators are measurements that managers identify as vital to the
company’s performance.
True
A distal goal is almost unattainable and requires the full capacity of an individual, manager,
team, or organization to accomplish.
False
Goals must be set within a strategic framework consisting of mission, vision, and values.
True
If a goal is several months or even a year in the future, milestones must be set along the way to assess performance and allow room for feedback.
True
Directional plans provide focus and include specific objectives and responsibilities.
False
Managers set proximal goals, or short term goals, that increase individuals’ abilities to reach distal goals by providing motivation and feedback.
True
People tend to be more motivated by _____________ goals.
challenging
Through progress reports and other types of feedback, managers can:
clarify expectations
assess the process
make adjustments if necessary
The motivation and determination needed to achieve a goal is known as:
goal commitment
The technique in which management and employees agree to specific goals that are then
used to evaluate individual performance is known as:
MBO
A plan that guides the day-to-day production or delivery of an organization’s goods and
services, and which enacts a functional strategy is known as a(n):
operational plan
A visual representation of an organization’s strategies and goals is a ________________.
performance dashboard
A standing plan that provides specific steps to be taken as part of a recurring process or in
response to a recurring situation is a:
procedure
Which of the following is NOT a characteristic of a S.M.A.R.T. goal?
realistic
A plan that interprets an organizational strategy into a market or community-based opportunity for division or departmental managers is a:
tactical plan
Which of the following is a standing plan that describes how an organization and its members should respond to recurring or anticipated situations?
Policy
The Harvard professor who developed the five forces model is Frederick Taylor.
False
A company with a high market share but low market growth is categorized as a cash cow.
True
A functional strategy determines how employees will implement and achieve a tactical plan.
True
A diversification strategy reduces risk as an organization adds new kinds of goods, services, or business units.
True
Only big industries are subject to government policies.
False
A plan of action for achieving goals is known as:
strategy
A company that uses strategies for high risk and fast growth through product and market innovation is known as a(n):
prospector
Which of the following is NOT a barrier to entry?
Expansive government policy
________ refers to the financial and human resources available to the company, which will enable or hinder it to achieve goals.
Capacity
What is the appropriate action for an organization or product that is a Question Mark according to the BCG Matrix?
Invest heavily in order to achieve Star status
Activities and processes that an organization routinely does well in comparison to its competitors are:
core capabilities
The renewal strategy addresses declining performance through ___________.
retrenchment and regrowth
Which of the following levels of strategy answers the question, “How will a business
compete in a particular industry or market?”
Divisional strategy
A(n) ____________ is a company whose strategies seek to maintain existing products and
services while pursuing limited innovation.
analyzer
When companies produce and distribute their own supplies it is known as:
vertical integration
It is the responsibility of managers to _________ strategies that will defend the company against the threat of competitors.
create
present
implement
A company that follows no consistent strategy, but instead changes depending on the environment, is a(n):
reactor
When an organization focuses on processes, products, and services that will last over the long term, it is known as the company’s:
stability strategy
