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Contemporary Management 11Th Edition By Gareth Jones -Test Bank

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Contemporary Management 11Th Edition By Gareth Jones -Test Bank

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Chapter 2   The Evolution of Management Thought

 

1) At the end of the 19th century, after the industrial revolution, managers found that they not only had to adjust to new technologies in the workplace but also to the social problems that accompanied them.

 

Answer:  TRUE

Explanation:  Many managers and supervisors in these workshops and factories were engineers who had only a technical orientation. They were unprepared for the social problems that occur when people work together in large groups in a factory or shop system.

Difficulty: 2 Medium

Topic:  Functions of management

Learning Objective:  02-01 Describe how the need to increase organizational efficiency and effectiveness has guided the evolution of management theory.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

2) Jaron wants to speed up the production process, so he used a time-and-motion study that monitored the actions required to complete the tasks in the assembly line.

 

Answer:  TRUE

Explanation:  A time-and-motion study involves the careful timing and recording of the actions taken to perform a particular task.

Difficulty: 2 Medium

Topic:  Scientific management

Learning Objective:  02-02 Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

3) The original purpose of Frederick W. Taylor’s scientific management techniques was to find a way to increase profitability by using intuitive, or rule-of-thumb knowledge.

 

Answer:  FALSE

Explanation:  Taylor believed that if the amount of time and effort that each worker expends to produce a unit of output (a finished good or service) can be reduced by increasing specialization and the division of labor, the production process will become more efficient. According to Taylor, the way to create the most efficient division of labor could best be determined by scientific management techniques rather than by intuitive or informal, rule-of-thumb knowledge.

Difficulty: 1 Easy

Topic:  Scientific management

Learning Objective:  02-02 Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

4) According to Fayol’s principles of management, workers should be given more job duties to perform with less responsibility for their work outcomes.

 

Answer:  FALSE

Explanation:  Fayol advocated that workers be given more job duties to perform or be encouraged to assume more responsibility for work outcomes.

Difficulty: 2 Medium

Topic:  Fayol’s division of labor

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

5) Fayol recommended the use of organizational charts to show the position and duties of each employee in the organization.

 

Answer:  TRUE

Explanation:  Fayol recommended the use of organizational charts to show the position and duties of each employee and to indicate which positions an employee might move to or be promoted into in the future.

Difficulty: 2 Medium

Topic:  Fayol’s division of labor

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

6) When Max was promoted to supervise his fellow workers on a production line, he treated them with respect. His coworkers liked working for “one of their own,” and their performance improved. This demonstrates the Hawthorne effect.

 

Answer:  TRUE

Explanation:  The Hawthorne effect suggests that each manager’s personal behavior or leadership approach can affect workers’ performance.

Difficulty: 3 Hard

Topic:  Hawthorne studies

Learning Objective:  02-04 Trace the changes in theories about how managers should behave to motivate and control employees.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

7) Sonja, a supervisor in a garment factory, believed that her workers were lazy and tried to get away with doing as little work as possible. Sonja’s attitude about the workers corresponds to McGregor’s Theory Y.

 

Answer:  FALSE

Explanation:  According to the assumptions of Theory X, the average worker is lazy, dislikes work, and will try to do as little as possible.

Difficulty: 3 Hard

Topic:  Theory X and Theory Y

Learning Objective:  02-04 Trace the changes in theories about how managers should behave to motivate and control employees.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

8) Management science theory focuses on the use of rigorous quantitative techniques.

 

Answer:  TRUE

Explanation:  Management science theory is a contemporary approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services.

Difficulty: 1 Easy

Topic:  Scientific management

Learning Objective:  02-05 Explain the contributions of management science to the efficient use of organizational resources.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

9) An open system uses resources from its external environment and converts them into goods and services.

 

Answer:  TRUE

Explanation:  An open system takes in resources from its external environment and converts or transforms them into goods and services that are sent back to that environment, where they are bought by customers.

Difficulty: 1 Easy

Topic:  Open system

Learning Objective:  02-06 Explain why the study of the external environment and its impact on an organization has become a central issue in management thought.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

10) A drawback of management information systems is that they provide information only about an organization’s internal environment, and not the external environment.

 

Answer:  FALSE

Explanation:  Management information systems give managers information about events occurring inside the organization as well as in its external environment.

Difficulty: 2 Medium

Topic:  Management information system (MIS)

Learning Objective:  02-06 Explain why the study of the external environment and its impact on an organization has become a central issue in management thought.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

11) The _______ theory was introduced in the latter part of the 19th century shortly after the industrial revolution had occurred in Europe and America.

  1. A) organizational environment
  2. B) management science
  3. C) behavioral management
  4. D) administrative management
  5. E) scientific management

 

Answer:  E

Explanation:  Several management theories emerged around the turn of the 20th century. First was the scientific management theory, which focuses on matching people and tasks to maximize efficiency.

Difficulty: 2 Medium

Topic:  Scientific management

Learning Objective:  02-01 Describe how the need to increase organizational efficiency and effectiveness has guided the evolution of management theory.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

12) Northeast Woodworking is a small business run by skilled workers who produce customized and hand-manufactured furniture. This company engages in ________ production.

  1. A) mass
  2. B) flow
  3. C) crafts
  4. D) series
  5. E) mechanized

 

Answer:  C

Explanation:  Crafts production refers to a system where small workshops run by skilled workers produce hand-manufactured products.

Difficulty: 2 Medium

Topic:  Scientific management

Learning Objective:  02-01 Describe how the need to increase organizational efficiency and effectiveness has guided the evolution of management theory.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

13) Job specialization refers to the process by which

  1. A) each position’s formal authority in an organizational hierarchy is established.
  2. B) division of labor occurs as different workers gain expertise in tasks.
  3. C) subordinates receive orders and report to only one superior.
  4. D) members of different departments work together in cross-departmental teams to accomplish projects.
  5. E) employees explore new ways to improve how tasks are performed.

 

Answer:  B

Explanation:  Job specialization is a process by which division of labor occurs as different workers specialize in tasks.

Difficulty: 1 Easy

Topic:  Specialization

Learning Objective:  02-02 Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

14) Adam Smith advocated ________ to produce products more quickly.

  1. A) job specialization
  2. B) division of labor
  3. C) unity of direction
  4. D) job rotation
  5. E) centralization

 

Answer:  A

Explanation:  Job specialization is the process by which a division of labor occurs as different workers specialize in tasks. Smith believed that the workers who specialized became much more skilled at their specific tasks and as a group were thus able to produce a product faster than the group of workers who each performed many tasks.

Difficulty: 1 Easy

Topic:  Specialization

Learning Objective:  02-02 Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

15) Joan has been working in a bicycle factory for several months. The assembly process requires multiple tasks, and Joan’s supervisor assigns her to apply the custom paint and add the decals. Adding the decals requires perfection, and Joan does it quickly and always performs the task well, so her supervisor decides to keep her in this position. This is an example of

  1. A) standard operating procedures.
  2. B) time-and-motion study.
  3. C) job specialization.
  4. D) the human relations movement.
  5. E) job rotation.

 

Answer:  C

Explanation:  Job specialization is the process by which a division of labor occurs as different workers specialize in different tasks over time.

Difficulty: 2 Medium

Topic:  Specialization

Learning Objective:  02-02 Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

16) Frederick W. Taylor is best known for defining the techniques of

  1. A) scientific management.
  2. B) administrative management.
  3. C) behavioral management.
  4. D) management science.
  5. E) organizational management.

 

Answer:  A

Explanation:  Frederick W. Taylor (1856–1915) is best known for defining the techniques of scientific management, the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. Taylor was a manufacturing manager who eventually became a consultant and taught other managers how to apply his scientific management techniques.

Difficulty: 1 Easy

Topic:  Scientific management

Learning Objective:  02-02 Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

17) Frederick Taylor believed that written rules and standard operating procedures

  1. A) limited initiative and should be avoided.
  2. B) spelled out the division of labor and increased effectiveness.
  3. C) stifled esprit de corps.
  4. D) made workers like their jobs less.
  5. E) standardized and simplified jobs, making them more efficient.

 

Answer:  E

Explanation:  Once the best method of performing a particular task was determined, Taylor specified that it should be recorded so this procedure could be taught to all workers performing the same task. These new methods further standardized and simplified jobs—essentially making jobs even more routine.

Difficulty: 2 Medium

Topic:  Scientific management

Learning Objective:  02-02 Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

18) According to Taylor, the production process becomes more efficient with

  1. A) an increase in the effort that each worker puts in to produce a unit of output.
  2. B) an increase in the amount of time required to produce a unit of output.
  3. C) an increase in division of labor through specialization.
  4. D) the use of informal rule-of-thumb knowledge.
  5. E) the use of intuitive knowledge.

 

Answer:  C

Explanation:  Taylor believed that if the amount of time and effort that each worker expends to produce a unit of output (a finished good or service) can be reduced by increasing specialization and the division of labor, the production process will become more efficient.

Difficulty: 1 Easy

Topic:  Scientific management

Learning Objective:  02-02 Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

19) What did Frank and Lillian Gilbreth discover in their study of fatigue in the workplace?

  1. A) Fatigue occurs less often with specialization of tasks.
  2. B) Lighting and the color of the walls had an effect on fatigue.
  3. C) There was not a strong correlation between fatigue and job performance.
  4. D) The more quickly a job could be done, the less fatigue was experienced.
  5. E) Job stress did not lead to fatigue.

 

Answer:  B

Explanation:  The Gilbreths studied how physical characteristics of the workplace contribute to job stress that often leads to fatigue and, thus, poor performance. They isolated factors that result in worker fatigue, such as lighting, heating, the color of walls, and the design of tools and machines.

Difficulty: 1 Easy

Topic:  Scientific management

Learning Objective:  02-02 Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

20) Sally works on a production line. Her manager moves several of her coworkers around to achieve the right worker–task specialization and to link people and tasks by the speed of the production line. If successful, the manager will

  1. A) lower costs.
  2. B) increase workplace monotony.
  3. C) increase job satisfaction.
  4. D) decrease organizational output.
  5. E) decrease mechanization of the work process.

 

Answer:  A

Explanation:  From a performance perspective, the combination of the two management practices—achieving the right worker–task specialization and linking people and tasks by the speed of the production line—produces the huge cost savings and dramatic output increases that occur in large, organized work settings.

Difficulty: 2 Medium

Topic:  Scientific management

Learning Objective:  02-02 Explain the principle of job specialization and division of labor, and tell why the study of person-task relationships is central to the pursuit of increased efficiency.

Bloom’s:  Apply

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

21) Administrative management is the study of how to

  1. A) control the organization’s relationship with its external environment.
  2. B) create an organizational structure that leads to high efficiency and effectiveness.
  3. C) tap into the feelings, thoughts, and behavior of work-group members and managers that affect worker performance.
  4. D) determine characteristics of the work setting that affect worker performance.
  5. E) motivate employees and encourage them to take on tasks outside their job title.

 

Answer:  B

Explanation:  Administrative management is the study of how to create an organizational structure and control system that leads to high efficiency and effectiveness.

Difficulty: 1 Easy

Topic:  Administrative management theory

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

22) Communication among managers in Angelo’s business was slowing down the pace of planning and organizing, so Angelo recently merged some of the company’s departments and cut back on the number of managerial levels. This demonstrates which of Fayol’s principles of management?

  1. A) unity of direction
  2. B) order
  3. C) authority and responsibility
  4. D) unity of command
  5. E) line of authority

 

Answer:  E

Explanation:  The more levels in the hierarchy, the longer communication takes between managers at the top and bottom and the slower the pace of planning and organizing. Restricting the number of hierarchical levels to lessen these communication problems lets an organization act quickly and flexibly.

Difficulty: 2 Medium

Topic:  Fayol’s principles of management

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

23) ________ refers to a system of task and authority relationships that controls how employees use resources to achieve a company’s goals.

  1. A) Bureaucracy
  2. B) A closed system
  3. C) An open system
  4. D) Organizational structure
  5. E) Organic structure

 

Answer:  D

Explanation:  Organizational structure is the system of task and authority relationships that controls how employees use resources to achieve the organization’s goals.

Difficulty: 1 Easy

Topic:  Administrative management theory

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

24) ________ refers to a formal system of organization and administration designed to ensure efficiency and effectiveness.

  1. A) Empowerment
  2. B) Bureaucracy
  3. C) An open system
  4. D) Synergy
  5. E) Authority

 

Answer:  B

Explanation:  Bureaucracy is a formal system of organization and administration designed to ensure efficiency and effectiveness.

Difficulty: 1 Easy

Topic:  Bureaucratic control

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

25) In a bureaucracy, a manager’s formal authority derives from

  1. A) the manager’s social standing and personal contacts.
  2. B) informal rule-of-thumb knowledge.
  3. C) intuitive knowledge.
  4. D) codifying the new methods of performing tasks into written rules.
  5. E) the position the manager holds in the organization.

 

Answer:  E

Explanation:  In a bureaucracy, a manager’s formal authority derives from the position he or she holds in the organization.

Difficulty: 1 Easy

Topic:  Line of authority

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

26) ________ is the power to hold workers accountable for their actions and to make decisions about the use of organizational resources.

  1. A) Initiative
  2. B) Synergy
  3. C) Authority
  4. D) Bureaucracy
  5. E) Empowerment

 

Answer:  C

Explanation:  Authority is the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources.

Difficulty: 1 Easy

Topic:  Line of authority

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

27) Billy Jean was angry that her supervisor told her she had to change the way she performed the job to increase her efficiency. However, the supervisor’s position gave him the ________ to change Billy Jean’s work behavior.

  1. A) initiative
  2. B) pay grade
  3. C) authority
  4. D) bureaucracy
  5. E) empowerment

 

Answer:  C

Explanation:  Authority is the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources.

Difficulty: 3 Hard

Topic:  Line of authority

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Apply

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

28) ________ gives managers the right to direct and control their subordinates’ behavior to accomplish organizational goals.

  1. A) Entropy
  2. B) Synergy
  3. C) Bureaucracy
  4. D) Authority
  5. E) Equity

 

Answer:  D

Explanation:  Authority gives managers the right to direct and control their subordinates’ behavior to achieve organizational goals.

Difficulty: 1 Easy

Topic:  Line of authority

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

29) When the tasks and authority associated with various positions in the organization are clearly specified, it creates a scenario where

  1. A) employees are not sure of what is expected of them.
  2. B) employees can be held strictly accountable for their actions.
  3. C) managers face difficulty in tracking the assigned tasks.
  4. D) confused employees create havoc within the formal hierarchy of authority.
  5. E) order and discipline are undermined.

 

Answer:  B

Explanation:  When the tasks and authority associated with various positions in the organization are clearly specified, an organization can hold all its employees strictly accountable for their actions when they know their exact responsibilities.

Difficulty: 2 Medium

Topic:  Line of authority

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

30) Henri Fayol believed that in order to increase the efficiency of the management process, it is essential that

  1. A) authority is concentrated at the top of the chain of command.
  2. B) managers discourage creativity in employees so that they stay focused on their jobs.
  3. C) there are a greater number of levels in a managerial hierarchy.
  4. D) managers do not have the right to give orders to employees; they should only give polite instructions.
  5. E) all organizational members are treated with justice and respect.

 

Answer:  E

Explanation:  Henri Fayol believed that all organizational members ought to be treated with respect for their own sense of integrity and with justice and respect.

Difficulty: 1 Easy

Topic:  Fayol’s division of labor

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

31) Maria’s job involves maintaining an accurate inventory and financial data. Her manager provided her with specific written instructions on how to perform the job task that is also used by other employees who do the same work. This is an example of

  1. A) organizational norms.
  2. B) bureaucracy.
  3. C) discipline.
  4. D) standard operating procedures.
  5. E) behavioral management.

 

Answer:  D

Explanation:  Standard operating procedures (SOPs) are specific sets of written instructions about how to perform a certain aspect of a task.

Difficulty: 2 Medium

Topic:  Standardization

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

32) In the context of management, rules refer to

  1. A) a reporting relationship in which an employee receives orders from only one superior.
  2. B) the ability of an individual to act on his own accord without direction from a superior.
  3. C) formal written instructions that specify actions to be taken under different circumstances.
  4. D) the performance gains that result when individuals and departments coordinate their actions.
  5. E) the methodical arrangement of positions to provide the organization with the greatest benefit.

 

Answer:  C

Explanation:  Rules are formal written instructions that specify actions to be taken under different circumstances to achieve specific goals.

Difficulty: 1 Easy

Topic:  Bureaucratic control

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

33) Michel’s company’s IT department sent an email to all employees explaining how employees must secure their computers when they leave their offices. Employees would most likely consider these instructions

  1. A) norms.
  2. B) rules.
  3. C) suggestions.
  4. D) orders.
  5. E) recommendations.

 

Answer:  B

Explanation:  Rules are formal written instructions that specify actions to be taken under different circumstances to achieve specific goals.

Difficulty: 2 Medium

Topic:  Bureaucratic control

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Apply

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

34) An example of a company’s standard operating procedure is

  1. A) a general recommendation that all employees leave their work machines in good order.
  2. B) a compulsory practice of employees cleaning their work areas at the end of each day.
  3. C) an informal code of conduct prescribing that employees help each other if time permits.
  4. D) a suggestion by the technical department to save all work-related files on the company FTP site.
  5. E) a recommendation by the human resources department that employees wear formal clothes during the week.

 

Answer:  B

Explanation:  Standard operating procedures (SOPs) are specific sets of written instructions about how to perform a certain aspect of a task.

Difficulty: 2 Medium

Topic:  Bureaucratic control

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

35) An example of a norm is

  1. A) a general mandatory guideline requiring all employees to leave their work machines in good order.
  2. B) a specific mandatory guideline asking employees to oil machine parts labeled A and B and replace C and D.
  3. C) an informal code of conduct recommending that employees help each other if time permits.
  4. D) a requirement by the human resources department that employees wear formal clothes during the week.
  5. E) a suggestion by the technical department that all work-related files are saved in a common location.

 

Answer:  C

Explanation:  Norms are unwritten, informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or organization.

Difficulty: 2 Medium

Topic:  Bureaucratic control

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

36) An example of a rule is

  1. A) a general mandatory guideline requiring all employees to leave their work machines in good working order.
  2. B) a statement issued by the company specifying the sales projection for the next fiscal year.
  3. C) an informal code of conduct recommending that employees help each other if time permits.
  4. D) a recommendation by the human resources department that employees wear formal clothes during the week.
  5. E) a suggestion by the technical department to save all work-related files on the company’s FTP site.

 

Answer:  A

Explanation:  Rules are formal written instructions that specify actions to be taken.

Difficulty: 2 Medium

Topic:  Bureaucratic control

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

37) In an organization, rules are

  1. A) formal, written instructions to achieve specific goals.
  2. B) unwritten expectations of behavior.
  3. C) informal codes of conduct.
  4. D) focused more on creating goals rather than achieving them.
  5. E) suggestions about best practices.

 

Answer:  A

Explanation:  Rules are formal written instructions that specify actions to be taken.

Difficulty: 1 Easy

Topic:  Bureaucratic control

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

38) In an organization that follows Weber’s principles of bureaucracy, positions are arranged

  1. A) hierarchically.
  2. B) by functional departments.
  3. C) by skills.
  4. D) by salary level.
  5. E) in a flat line.

 

Answer:  A

Explanation:  Weber’s principle 4 states that authority is exercised effectively when positions are arranged hierarchically.

Difficulty: 1 Easy

Topic:  Bureaucratic control

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

39) Norms are

  1. A) mandatory instructions that must be followed by all employees of a company.
  2. B) written instructions about desired behavior in the workplace.
  3. C) informal codes of conduct among employees in a particular company.
  4. D) detailed instructions about how to perform a certain aspect of a task.
  5. E) specified actions to be taken under different circumstances to achieve specific company goals.

 

Answer:  C

Explanation:  Norms are unwritten, informal codes of conduct that prescribe how people should behave.

Difficulty: 1 Easy

Topic:  Norms

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

40) Henri Fayol’s principles of management are

  1. A) no longer considered a useful theory of management.
  2. B) the bedrock on which much of recent management theory and research is based.
  3. C) strongly based on Weber’s theory of management.
  4. D) opposed to the division of labor in principle.
  5. E) based primarily on the belief that authority should be concentrated at the top of the chain of command.

 

Answer:  B

Explanation:  Although Fayol’s 14 principles of management were developed at the turn of the 20th century, they remain the bedrock on which much of recent management theory and research is based.

Difficulty: 1 Easy

Topic:  Fayol’s principles of management

Learning Objective:  02-03 Identify the principles of administration and organization that underlie effective organizations.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

Contemporary Management, 11e (Jones)

Chapter 4   Ethics and Social Responsibility

 

1) Aaron works in the accounting department for a large manufacturing company. His manager instructed him to record a transaction in an incorrect manner to increase the revenue for the fiscal year. Aaron is pondering whether to report this issue to a higher-level manager. He is experiencing an ethical dilemma.

 

Answer:  TRUE

Explanation:  One type of ethical dilemma is the quandary people find themselves in when they have to decide if they should act in a way that might help another person or group and is the right thing to do, even though doing so might go against their own self-interest.

Difficulty: 3 Hard

Topic:  Ethical dilemma

Learning Objective:  04-01 Explain the relationship between ethics and the law.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

2) Laws are fixed principles, but ethics are not.

 

Answer:  FALSE

Explanation:  Neither laws nor ethics are fixed principles that do not change over time. Ethical beliefs change as time passes; as they do, laws change to reflect the changing ethical beliefs of a society.

Difficulty: 1 Easy

Topic:  Ethical climate

Learning Objective:  04-01 Explain the relationship between ethics and the law.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

3) Stockholders are the group that bears the responsibility to decide which goals an organization should pursue to most benefit stakeholders.

 

Answer:  FALSE

Explanation:  Managers are the stakeholder group that bears the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals.

Difficulty: 1 Easy

Topic:  Internal stakeholders

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

4) Josiah is comfortable with his decision he made at work and would have no problem with people reading about it on the front page of a morning paper. This indicates that he is following the practical rule of ethics.

 

Answer:  TRUE

Explanation:  The practical rule is that an ethical decision is one that a manager has no hesitation or reluctance about communicating to people outside the company because the typical person in a society would think it is acceptable.

Difficulty: 2 Medium

Topic:  Ethical behavior

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Apply

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

5) The moral rights rule states that people should put the community’s interests above the company’s.

 

Answer:  FALSE

Explanation:  The utilitarian rule is that an ethical decision is a decision that produces the greatest good for the greatest number of people. To decide which is the most ethical course of business action, managers should first consider how different possible courses of business action would benefit or harm different stakeholders.

Difficulty: 1 Easy

Topic:  Ethical behavior

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

6) When one person starts to profit by behaving unethically, it encourages other people to act in the same way.

 

Answer:  TRUE

Explanation:  The relentless pursuit of self-interest can lead to a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way.

Difficulty: 2 Medium

Topic:  Ethical behavior

Learning Objective:  04-04 Discuss why it is important for managers to behave ethically.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

7) Websites that allow free downloading of songs and movies illustrate the “tragedy of the commons” because there is pursuit of self-interest with no consideration for societal interest.

 

Answer:  TRUE

Explanation:  This is an example of digital piracy. The tragedy that would result if all people were to steal digital media would be the disappearance of music, movie, and book companies as creative people decided there was no point in working hard to produce original songs, stories, and so on.

Difficulty: 2 Medium

Topic:  Ethical behavior

Learning Objective:  04-04 Discuss why it is important for managers to behave ethically.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

8) Maria is a member of a trade group that has a code of ethics, otherwise known as organizational ethics, for its members to follow.

 

Answer:  FALSE

Explanation:  The standards that govern how members of a profession should conduct themselves are called occupational ethics.

Difficulty: 2 Medium

Topic:  Ethical behavior

Learning Objective:  04-05 Identify the four main sources of managerial ethics.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

9) People typically confront ethical issues when weighing their personal interests against the effects of their actions on others.

 

Answer:  TRUE

Explanation:  People typically confront ethical issues when weighing their personal interests against the effects of their actions on others.

Difficulty: 1 Easy

Topic:  Ethical behavior

Learning Objective:  04-05 Identify the four main sources of managerial ethics.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

10) Don decided to close his factory and move production to increase the company’s profits even though this caused hardship for his employees and the community. Don’s decision is not only legal but also socially responsible behavior.

 

Answer:  FALSE

Explanation:  Don’s behavior would be more socially responsible if he decided to keep the company’s operations in the United States to protect the jobs of American workers rather than move abroad.

Difficulty: 2 Medium

Topic:  Socially responsible behavior

Learning Objective:  04-06 Distinguish among the four main approaches toward social responsibility that a company can take.

Bloom’s:  Apply

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

11) Eleanor has witnessed her manager harassing a coworker on multiple occasions. Eleanor knows that she should report the incidents to a superior manager, but she is hesitant to report the inappropriate behavior because she thinks she could lose her job. This example illustrates a(n)

  1. A) justice rule.
  2. B) ethical dilemma.
  3. C) moral dilemma.
  4. D) utilitarian rule.
  5. E) moral rights rule.

 

Answer:  B

Explanation:  An ethical dilemma is the quandary people find themselves in when they have to decide if they should act in a way that might help another person or group and is the right thing to do, even though doing so might go against their own self-interest.

Difficulty: 2 Medium

Topic:  Ethical dilemma

Learning Objective:  04-01 Explain the relationship between ethics and the law.

Bloom’s:  Apply

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

12) ________ are the moral principles and beliefs about what is the right or appropriate way to behave.

  1. A) Societal norms
  2. B) Laws and regulations
  3. C) Ethics
  4. D) Values and norms
  5. E) Individual values

 

Answer:  C

Explanation:  Ethics are the inner guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the right or appropriate way to behave.

Difficulty: 1 Easy

Topic:  Ethical behavior

Learning Objective:  04-01 Explain the relationship between ethics and the law.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

13) Brenda, the CEO of a manufacturing company, knew that her company followed the Environmental Protection Agency’s (EPA) regulations for purifying waste water; however, new research found that those regulations where not strict enough and the drinking water would be affected. Brenda relied on her ________ and told the plant manager to go beyond the EPA’s required level to assure that the company waste did not affect the community.

  1. A) moral scruples
  2. B) occupational ethics
  3. C) practical rules
  4. D) environmental principles
  5. E) social justice views

 

Answer:  A

Explanation:  Moral scruples are thoughts and feelings that tell a person what is right or wrong; they are a part of a person’s ethics.

Difficulty: 2 Medium

Topic:  Ethical behavior

Learning Objective:  04-01 Explain the relationship between ethics and the law.

Bloom’s:  Apply

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

14) The essential problem when solving moral dilemmas is

  1. A) ethics and laws are fixed principles.
  2. B) ethical beliefs remain constant as time passes.
  3. C) there are no absolute or indisputable rules or principles to decide whether an action is ethical.
  4. D) everyone agrees on what is ethical or unethical.
  5. E) ethics evolve over time, but laws related to ethical beliefs remain constant.

 

Answer:  C

Explanation:  The essential problem in dealing with ethical issues, and thus solving moral dilemmas, is that no absolute or indisputable rules or principles can be developed to decide whether an action is ethical or unethical.

Difficulty: 2 Medium

Topic:  Ethical behavior

Learning Objective:  04-01 Explain the relationship between ethics and the law.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

15) Smoking marijuana is illegal in many states; therefore, smoking marijuana is

  1. A) unethical.
  2. B) ethical.
  3. C) possibly unethical or ethical, depending on the circumstances.
  4. D) always ethical when used for medical purposes, whether it is legal or not.
  5. E) always unethical when used for medical purposes, whether it is legal or not.

 

Answer:  C

Explanation:  Both ethical and legal rules are relative. It depends on the time and circumstances.

Difficulty: 2 Medium

Topic:  Ethical behavior

Learning Objective:  04-01 Explain the relationship between ethics and the law.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

16) Jonathon is a(n) ________, meaning he is both an employee of the company and a customer of its products.

  1. A) stockholder
  2. B) shareholder
  3. C) stakeholder
  4. D) owner
  5. E) community member

 

Answer:  C

Explanation:  The people and groups affected by how a company and its managers behave are called its stakeholders. Stakeholders are stockholders, employees, customers, and others.

Difficulty: 2 Medium

Topic:  External stakeholders

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Apply

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

17) One thing that it is important to remember about stockholders is they

  1. A) are usually regarded as the most critical stakeholder group.
  2. B) are least interested in the company’s profits.
  3. C) bear the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals.
  4. D) are responsible for using a company’s financial, capital, and human resources to increase its performance and thus its stock price.
  5. E) play an important role, but are not the company’s only stakeholder group.

 

Answer:  E

Explanation:  Stockholders have a claim on a company because when they buy its stock or shares, they become its owners.

Difficulty: 2 Medium

Topic:  External stakeholders

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

18) ________ watch the company and its managers closely to ensure that management is working diligently to increase the company’s profitability.

  1. A) Community members
  2. B) Suppliers
  3. C) Stockholders
  4. D) Customers
  5. E) Distributors

 

Answer:  C

Explanation:  Stockholders are interested in how a company operates because they want to maximize the return on their investment. Thus, they watch the company and its managers closely to ensure that management is working diligently to increase the company’s profitability.

Difficulty: 1 Easy

Topic:  External stakeholders

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

19) ________ have/has the right to expect a good return or reward by investing their human capital to improve a company’s performance.

  1. A) Customers
  2. B) Distributors
  3. C) Suppliers
  4. D) The Community
  5. E) Managers

 

Answer:  E

Explanation:  Managers have a claim on an organization because they bring to it their skills, expertise, and experience. They have the right to expect a good return or reward by investing their human capital to improve a company’s performance.

Difficulty: 1 Easy

Topic:  Internal stakeholders

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

20) ________ are the stakeholder group with the most responsibility for deciding the goals of the organization.

  1. A) Stockholders
  2. B) Customers
  3. C) Managers
  4. D) Operational-level employees
  5. E) Consultants

 

Answer:  C

Explanation:  Managers are the stakeholder group that bears the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals.

Difficulty: 1 Easy

Topic:  Internal stakeholders

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

21) ________ are frequently in the position of having to juggle the interests of different stakeholders, including themselves.

  1. A) Stockholders
  2. B) Customers
  3. C) Contractors
  4. D) Managers
  5. E) Suppliers

 

Answer:  D

Explanation:  Managers are the stakeholder group that bears the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals. In making such decisions, managers are frequently in the position of having to juggle the interests of different stakeholders, including themselves.

Difficulty: 2 Medium

Topic:  Internal stakeholders

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

22) A company can act ethically toward employees and meet their expectations by

  1. A) improving their products over time and providing guarantees to customers about the integrity of their products.
  2. B) selling customers quality products at a fair price and providing good after-sales service.
  3. C) maximizing the stockholders’ return on investments.
  4. D) creating an occupational structure that fairly and equitably rewards organization members for their contributions.
  5. E) implementing a high-power distance culture and discouraging decentralized decision making.

 

Answer:  D

Explanation:  One principal way that a company can act ethically toward employees and meet their expectations is by creating an occupational structure that fairly and equitably rewards employees for their contributions.

Difficulty: 2 Medium

Topic:  Ethical climate

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

23) The board and top managers of a nonprofit organization have considerable latitude to decide how they will spend the organization’s resources because

  1. A) they are a private foundation.
  2. B) the organization does not have shareholders.
  3. C) they are typically small organizations.
  4. D) they receive contributions and government grants.
  5. E) all monies earned are pumped back into the business.

 

Answer:  B

Explanation:  For-profit organizations are required by law to provide detailed reports of their operations to their shareholders. Nonprofit organizations do not have shareholders, and, therefore, the laws for governing disclosure are far weaker and little oversight exists.

Difficulty: 2 Medium

Topic:  Internal stakeholders

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

24) Tax reform legislation signed into law by President Trump in late 2017 included a new 21% excise tax on ________ for salaries over $1 million.

  1. A) nonprofit employers
  2. B) public company CEOs
  3. C) small business employees
  4. D) government employees
  5. E) companies with overseas branches

 

Answer:  A

Explanation:  The tax reform legislation signed into law by President Trump in late 2017 included a new 21% excise tax on nonprofit employers for salaries over $1 million.

Difficulty: 1 Easy

Topic:  Legislation

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

25) The town in which a large dog food company has its headquarters is referred to as

  1. A) a community.
  2. B) the company’s constituency.
  3. C) stockholders.
  4. D) the company’s labor force.
  5. E) the company’s social conscience.

 

Answer:  A

Explanation:  Community refers to physical locations like towns or cities or to social milieus like ethnic neighborhoods in which companies are located.

Difficulty: 2 Medium

Topic:  External stakeholders

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

 

 

26) The ________ stakeholder group is often considered to be the most critical.

  1. A) managers
  2. B) employees
  3. C) customers
  4. D) stockholders
  5. E) suppliers

 

Answer:  C

Explanation:  The customer stakeholder group is often regarded as the most critical stakeholder group because if a company cannot attract them to buy its products, it cannot stay in business.

Difficulty: 1 Easy

Topic:  External stakeholders

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

 

27) Stefan is confronted with a serious ethical dilemma. He responds with a solution that creates the greatest good for the greatest number of people. Which ethical rule best describes his response?

  1. A) justice
  2. B) moral rights
  3. C) utilitarian
  4. D) practical
  5. E) moral scruples

 

Answer:  C

Explanation:  The utilitarian rule is that an ethical decision is a decision that produces the greatest good for the greatest number of people.

Difficulty: 2 Medium

Topic:  Ethical dilemma

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Apply

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

28) The utilitarian rule states that an ethical decision is one that

  1. A) best protects the rights of people affected.
  2. B) produces the greatest good for the greatest number of people.
  3. C) distributes benefits and harms in an impartial manner.
  4. D) can be communicated with no reluctance.
  5. E) increases the financial effectiveness of the organization.

 

Answer:  B

Explanation:  The utilitarian rule states that an ethical decision is a decision that produces the greatest good for the greatest number of people.

Difficulty: 1 Easy

Topic:  Utilitarian approach

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

29) Under the ________ rule, an ethical decision is one that best maintains people’s fundamental privileges.

  1. A) justice
  2. B) moral rights
  3. C) utilitarian
  4. D) practical
  5. E) moral scruples

 

Answer:  B

Explanation:  Under the moral rights rule, an ethical decision is one that best maintains and protects the fundamental or inalienable rights and privileges of the people affected by it.

Difficulty: 1 Easy

Topic:  Ethical behavior

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

30) “Do unto others as you would have them do unto you,” is an example of the ________ principle.

  1. A) utilitarian
  2. B) moral rights
  3. C) justice
  4. D) practical
  5. E) fundamental

 

Answer:  B

Explanation:  The adage “Do unto others as you would have them do unto you” is a moral rights principle that managers should use to decide which rights to uphold.

Difficulty: 2 Medium

Topic:  Ethical behavior

Learning Objective:  04-02 Differentiate between the claims of the different stakeholder groups affected by managers and their companies’ actions.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

31) The ________ rule states that an ethical decision is one in which rewards and harms are distributed in a fair and impartial way.

  1. A) justice
  2. B) moral rights
  3. C) utilitarian
  4. D) practical
  5. E) moral scruples

 

Answer:  A

Explanation:  The justice rule is that an ethical decision distributes benefits and harms among people and groups in a fair, equitable, or impartial way.

Difficulty: 1 Easy

Topic:  Justice approach

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

32) When Bob calculates the yearly bonuses for his employees, he pays particular attention to the individual employee scores to ensure that they are based on performance and not favoritism. Which ethical rule is Bob following?

  1. A) practical
  2. B) moral scruples
  3. C) utilitarian
  4. D) justice
  5. E) moral rights

 

Answer:  D

Explanation:  The justice rule is that an ethical decision distributes benefits and harms among people and groups in a fair, equitable, or impartial way.

Difficulty: 2 Medium

Topic:  Justice approach

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Apply

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

33) Under the practical rule, for a business decision to be ethical, a manager would NOT be reluctant to communicate the decision to people outside the company when

  1. A) the decision, although unethical, would increase shareholders’ wealth.
  2. B) a typical person would consider the decision acceptable.
  3. C) a typical person wouldn’t care about the decision.
  4. D) a typical person would be unaware of the harmful implications of the decision.
  5. E) he or she could blame the top management of the firm.

 

Answer:  B

Explanation:  The practical rule is that an ethical decision is one that a manager has no hesitation or reluctance about communicating to people outside the company because the typical person in a society would think it is acceptable.

Difficulty: 2 Medium

Topic:  Ethical climate

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

34) The practical rule states that an ethical decision is one that

  1. A) best protects the rights of people affected.
  2. B) produces the greatest good for the greatest number of people.
  3. C) distributes benefits and harms in a fair way.
  4. D) can be communicated with no reluctance.
  5. E) is relevant to the financial effectiveness of the organization.

 

Answer:  D

Explanation:  The practical rule is that an ethical decision is one that a manager has no reluctance about communicating to people outside the company because the typical person in a society would think it is acceptable.

Difficulty: 1 Easy

Topic:  Ethical behavior

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

35) Shia makes some changes in the production process to ensure employees can perform tasks without endangering their health and safety. Shia is employing the moral rights rule to

  1. A) seek to protect the rights and privileges of people affected.
  2. B) maximize the greatest good for the greatest number of people.
  3. C) distribute benefits in fair ways but ignore harm.
  4. D) hesitate to communicate to people outside the company for fear of them criticizing her decision.
  5. E) randomly distribute harms and benefits.

 

Answer:  A

Explanation:  Under the moral rights rule, an ethical decision is one that best maintains and protects the fundamental or inalienable rights and privileges of the people affected by it, including the right to safety.

Difficulty: 2 Medium

Topic:  Ethical behavior

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Apply

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

36) One managerial implication of the justice model is that to be ethical, managers should base their decisions on

  1. A) the effects the decision can have on stakeholders’ rights.
  2. B) what provides maximum profits to the company.
  3. C) whatever promotes a fair distribution of outcomes.
  4. D) the personal situation of employees.
  5. E) the greatest good for the greatest number of people.

 

Answer:  C

Explanation:  The justice rule is that an ethical decision distributes benefits and harms among people and groups in a fair, equitable, or impartial way.

Difficulty: 1 Easy

Topic:  Justice approach

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

37) An ethical dilemma for managers is that decisions that will protect the rights of some stakeholders often will hurt the rights of others. This most closely relates to the ________ rule of ethical decision making.

  1. A) practical
  2. B) moral scruples
  3. C) utilitarian
  4. D) justice
  5. E) moral rights

 

Answer:  E

Explanation:  Managers should choose the course of action that best protects and upholds the rights of all stakeholders. The ethical dilemma for managers is that decisions that will protect the rights of some stakeholders often will hurt the rights of others.

Difficulty: 2 Medium

Topic:  Ethical dilemma

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

38) The practical rule of ethical decision making

  1. A) emphasizes distributing benefits and harms in an equitable way.
  2. B) states that it is acceptable for a company to choose an unethical action if the action provides the greatest good for the greatest number of people.
  3. C) requires managers to determine the fair or unfair rules and procedures for distributing outcomes to stakeholders.
  4. D) states that an ethical decision is one that a manager will be hesitant or reluctant to communicate to people outside the company because the typical person in a society would think it is unacceptable.
  5. E) ensures that managers will take into account the interests of all the stakeholders.

 

Answer:  E

Explanation:  Applying the practical rule to analyze a business decision ensures that managers are taking into account the interests of all stakeholders.

Difficulty: 2 Medium

Topic:  Ethical climate

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

39) When Frida was determining if her decision was ethical, she asked herself, “Would the people with whom I have a significant personal relationship, such as family members, friends, or even managers in other organizations, approve of the decision?” Frida was demonstrating which rule of ethical decision making?

  1. A) practical
  2. B) moral scruples
  3. C) utilitarian
  4. D) justice
  5. E) moral rights

 

Answer:  A

Explanation:  The practical rule is that an ethical decision is one that a manager has no hesitation or reluctance about communicating to people outside the company because the typical person in a society would think it is acceptable.

Difficulty: 2 Medium

Topic:  Ethical behavior

Learning Objective:  04-03 Describe four rules that can help companies and their managers act in ethical ways.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

40) A website offered free streaming and downloading of movies, games, and music. It was eventually shut down by the courts. Websites like these demonstrate that the pursuit of self-interest can lead to a(n) ________, a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way.

  1. A) moral dilemma
  2. B) “tragedy of the commons”
  3. C) ethical dilemma
  4. D) credo
  5. E) war of attrition

 

Answer:  B

Explanation:  This situation is an example of “tragedy of the commons.” The tragedy that would result if all people were to steal digital media would be the disappearance of music, movie, and book companies as creative people decided there was no point in working hard to produce original songs, stories, and so on.

Difficulty: 2 Medium

Topic:  Ethical behavior

Learning Objective:  04-04 Discuss why it is important for managers to behave ethically.

Bloom’s:  Understand

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

41) The ________ is the idea that the pursuit of self-interest with no consideration for societal interests leads to disaster.

  1. A) tragedy of the commons
  2. B) ethical dilemma
  3. C) moral dilemma
  4. D) credo
  5. E) concept of individual ethics

 

Answer:  A

Explanation:  The “tragedy of the commons” is the idea that the pursuit of self-interest with no consideration for societal interests leads to disaster.

Difficulty: 1 Easy

Topic:  Ethical climate

Learning Objective:  04-04 Discuss why it is important for managers to behave ethically.

Bloom’s:  Remember

AACSB:  Ethics

Accessibility:  Keyboard Navigation

 

 

 

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