Answer of Case Study

ITM
TUTORIAL
EXERCISES
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Chap 1: Management and Organizations

Case Application: More Than a Good Story
Discussion questions:
Question 1. As the top managers of their company what type of issues might Bert
and John have to deal with? Be as specific as possible, which management
functions might be most important to them? Why?
Answer 1. The number and type of issues may vary from time to time or may arise
as influenced by many factors, however, few of the issues which they might face is
as tabulated under.
1. Issues. As the top managers of their company, Bert and John have to
establish the plans and goals and make some big decisions, such as which market
do they want to develop, how much money they want to earn next year, which
partner they want to cooperate and so on. As the top managers of the company Bert
and John might face following issues:-
a. Leadership
i. Defining Leadership Style. Though leadership may be hard to

define, but as one characteristic remain common i.e. all leaders
must have the ability to make things happen. Thus being the top
mangers they must maintain their will to control events, charting
out of course and implementing with the power to get job done
using the skills and abilities of employees.
ii. Consistency in making Good Decision. Being at the helms of
affairs they are expected to maintain steadiness in achieving
intended goal.
b. Egoistic Approach. At some point they may have experience of being

unavoidably entangled in following egoistic approach. This has to
remain in control in order to achieve the desired goals. Few of the
factors indicating problems with an out-of-control ego are:
i. Consistently poor morale.
ii. Constant communication breakdowns
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iii. Bad hiring decisions

iv. Acquisitions or mergers that go sour.
v. High employee turnover.
vi. Consistently poor quality
vii. Loss of market share.
viii. Vulnerability to competitors.
ix. Poor sales results.
x. Decreasing profits from year to year.
xi. Consistently poor decisions.
c. Motivational issue. No organization, be it formal or casual, will get far if

its workers are not motivated. Workers who lack focus or are
uninterested in the end goal are not usually very productive, and can
often undermine a leader’s efforts and authority. Sometimes, the fix is
as easy as clearly communicating the mission. Being top managers
they must work with employees to figure out an effective incentive
structure.
d. Cultivating Leadership Approach. Being at the top It is a known fact

that the hardest parts of running any sort of organization is ensuring
that those in superior positions are actually capable of leading
effectively.
e. Communication. At some point of time they

may face communication gap between them and subordinate
management. Effective teamwork depends on a culture of open
communication, where superiors and subordinates can freely discuss
progress and problems. Employees who feel that their bosses are
distant or somehow “off limits” have a tendency to make mistakes that
could have been avoided had parties felt more comfortable talking to
each other.
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f. Creating Team Unity. Being Leaders they are often responsible for
helping build unity between staff members. It can take a bit of time for
workers to develop trusting relationships with one another, and the role
of a supervisor or managers is to set the proper framework to
encourage these relationships to grow.
2. Most important management function. There are five basic functions tabulated
as under:
a. Planning. This function involves mapping out exactly how to

achieve a particular goal.
b. Organizing. After a plan is in place, a manager needs to organize her
team and materials according to her plan. Assigning work and granting
authority are two important elements of organizing.
c. Staffing. After a manager discerns his area's needs, he may
decide to beef up his staffing by recruiting, selecting, training, and
developing employees.
d. Leading. A manager needs to do more than just plan, organize,
and staff his team to achieve a goal. He must also lead. Leading
involves motivating, communicating, guiding, and encouraging. It
requires the manager to coach, assist, and problem solve with
employees.
e. Controlling. After the other elements are in place. He needs to
continuously check results against goals and take any corrective
actions necessary to make sure that his area's plans remain on track.
3. All managers at all levels of every organization perform these functions, but in
this particular case Controlling would be the most important function, which gives the
basic drive to run the business. Because Life is good company is a mature company,
which has mature rules, middle managers and first line managers. It also has mature
markets. As the top managers, the most important function is controlling now.
Question 2. Using descriptions from the case, describe Bert and Jhon’s managerial
style. Would this approach work for other organizations? Why or why not?
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Answer 2. Bert and John’s managerial style is managing people who take action.
It can work for other organizations as well. For Bert and John, they set up the motto
and enhance the company’s culture to let employees feel themselves to be
constructive parts of the company.
Question 3. How do you think the company’s motto “Do what you like, Like what
you do” might affect how mangers manage? Be specific.
Answer 3. The motto “Do what you like. Like what you do.” might affect that which
kind of employees the managers want to hire and how they encourage their
employees to work hard. The motto is a kind of company’s culture. And it can help
employees to identify the company. It can be claimed that the motto Do what you
like. Like what you do works as a catalyst in the positive growth of the company.
Question 4. What managerial challenges might there be in having friends work for
your business? How could these challenges be kept inconsequential?
Answer 4. The challenges in having friends work for your business might be hard to
manage. Sometimes they don’t think you are the boss, they think you are just their
friend. But it is easy to deal with talk to your friends and make sure they know their
roles. Let them know here is the business, and there are rules in the company.
Everybody should follow the rules, nobody except.
Question 5. Would you want to work for a company like this? Why or why not?
Answer 5. To answer that would I work for a company like Life is Good? yes
would be my reply. Foremost of the reason would be that the company promotes and
maintain a stress free environment for all employees. This good management style
encourages the employees to learn new things and improve their performance and
thus leading to a positive productivity note.
Question 6. In what ways would the Life is Good managers (corporate and retail
stores) have to deal with the challenges of customer services, innovation and
sustainability? Be specific in your description.
Answer 6. Managers at Life is Good are requires to utilize their skills and bring on
the right amount of motivation to run the company.
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1. Challenges. Mangers might have to deal with following challenges:
a. Achieving Goal. There are goals associated with objectives, and if

organization is aggressive then those goals require more than the
typical amount of effort. It’s going to take some careful planning to
figure out how to apply organization’s people and resources to achieve
an aggressive goal. Managers have to have to motivate people,
remove hurdles, and focus on the things that are most important.
b. Getting the best out of employee. To take on this challenge the
manager may have to adopt following steps:-
i. Treating every employee with respect.
ii. Help employees align their personal goals with their work goals.
iii. Provide a work environment that is appropriate for the work and
conducive to employee well-being.
iv. Encourage employee communication and cooperation
c. Dealing with Underperforming Employees. Right and periodic
provision of motivation and counseling by the managers will help the
employees to improve upon their performance.
d. Hiring the Right People. To have the right person for a specific job is
one one of the major contributor to company’s performance. It must be
noted that an interviews may not predict a good work and work habits
of interviewee, however its going beyond the interview which is crucial.
e. Crises Management. Planning is a part of managing, but when a crisis
hits, manager have to be able to deal with it calmly, quietly and without
being overwhelmed by stress.
f. Continuous Improvement. There’s always a room for improvement or a
change in a process, a better working environment, better employee
motivation, more focus on the essentials. A manager must seek out
these improvement through research or periodical overviews of
workplace and respond correctly.
2. Importance of innovation. Innovation is a critical factor in a growth of a

company, and it means doing things differently, exploring new territory and taking
risks. Innovation can be the application of new ideas to the products, processes, or
other aspects of the activities of a company that lead to increased “value.” For a
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company like Life is Good managers must be abreast with the latest ideas and global
trends.
3. Importance of sustainability. Sustainability is the ability to maintain a certain
status or process in existing systems or company’s ability to achieve its business
goals and increase long term shareholder value by integrating economic,
environmental, and social opportunities into business strategy. For a company like
Life is Good it becomes important because all the goals they pursue, and all the
actions taken today will affect it in the future. Before sustainability can be fully
integrated into a company’s core business, though, top managers have to take
following important actions:
 Shaping consumer tastes to build a stronger market for sustainable products.

 Training management, employees and the next generation of leaders to deal
with sustainability issues.
 Communicating with investors to create a better understanding of the impact
of sustainability.
 Measuring performance on sustainability — and explaining the value of
business in society.
 Working with governments to shape clearer regulation and create a level
playing field.
ANSWERS TO REVIEW AND DISCUSSION QUESTIONS

1. How do managers differ from non-managerial employees?
The answer to this question used to be straightforward, but the line between
managerial and non-managerial employees has blurred as more employees take on
task once reserved for managers. To keep the answer from becoming too
complicated, the best way to address this question is to focus on the fact that a
manager’s job is about helping others do their work.
2. Is your course instructor a manager? Discuss in terms of managerial functions,
managerial roles, and skills.
Course instructors (in contrast to individuals who hold positions such as department
head) are not usually classified as managers. In most situations, a course instructor
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does not fall within the definition of a manager when utilizing managerial functions,
mainly because students are clients rather than employees. In some cases, an
instructor has little input about course content or how it is to be taught. In these
instances, the instructor makes few managerial decisions.
In terms of managerial roles, course instructors may be involved in some ways in
the interpersonal, informational, and decisional roles. For example, a course
instructor could be seen as a liaison (interpersonal role), a monitor and disseminator
(both informational roles), and a disturbance handler and negotiator (both decisional
roles).
Regarding managerial skills, course instructors certainly need technical skills—
knowledge about the latest research and conceptual developments in a particular
discipline. They also need significant human skills as they interact with their
students. To a limited extent, the instructor utilizes conceptual skills as courses are
planned or as departmental curriculums are debated.
3. “The manager’s most basic responsibility is to focus people toward performance

of work activities to achieve desired outcomes.” What’s your interpretation of this
statement? Do you agree with this statement? Why or why not?
This statement means that a manager’s job or responsibility is to coordinate and/or

focus subordinates’ energies toward performance outcomes that will result in the
achievement of organizational goals. By definition, management is coordinating and
overseeing the work activities of others so that their activities are completed
efficiently and effectively. Therefore, most managers and management scholars
would agree with this statement. Coordinating others’ work activities is what
distinguishes a manager’s job from a nonmanagerial one.
4. Explain the universality of management concept. Does it still hold true in today’s
world? Why or why not?
Management principles are needed for the efficient and effective operation of
organizations, regardless of the level of the manager or the industry in which they
operate. This is true for today’s organizations now more than ever. The global
environment of today ensures that organizations will face staunch competition.
Failure and weakness on the part of management ultimately lead to loss of market
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share and organizational closure. Also, gone are the days when managers could
‘bluff’ their way through their dealings with employees who have become more
demanding and aware of their legal rights.
5. Is business management a profession? Why or why not? Do some external

research in answering this question.
According to the Occupational Outlook Handbook published by the Bureau of Labor

Statistics, management is a profession. In addition to the concept of an
administrative manager, the Occupational Outlook Handbook list a variety of
specific types of management positions, such as management analysts,
management consultants, management development specialist (such as human
resource managers). According to the Bureau of Labor Statistics (BLS),
administrative services managers held about 247,000 jobs in 2006 with 12%
expected in the next ten years. The majority of jobs identified by the BLS, shows
that about 65 percent worked in service-providing industries, including Federal,
State, and local government; health care; finance and insurance; professional,
scientific, and technical services; administrative and support services; and
educational services, public and private. The remaining managers worked in
wholesale and retail trade, in management of companies and enterprises, or in
manufacturing.
6. Is there one best “style” of management? Why or why not?
No, there’s probably not one single “best” style of management. Organizational
situations vary and what works best in one organization may not necessarily work
best in another. Point out to students that they will find a variety of managerial
“styles” illustrated throughout the textbook in different boxes, examples, and cases.
Each individual tends to develop his or her own preferred “style” of managing.
7. Does the way that that contemporary organizations are structured appeal to you?
Why or why not?
Exhibit 1-10 lists some of the important differences between the traditional
organization and the contemporary organization. These differences include flexible
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work arrangements, employee work teams, open communication systems, and

supplier alliances. Organizations are becoming more open, flexible, and responsive
to changes. Students should reflect on these new elements and defend their
selections.
8. In today’s environment, which is more important to organizations—efficiency or

effectiveness? Explain your choice.
Both are integral to effective management. Management refers to the process of

coordinating and integrating work activities so that they’re completed efficiently and
effectively with and through other people. Efficiency is getting the most output from
the least amount of inputs, the goal of which is to minimize resource costs (see
Exhibit 1-2). Effectiveness is completing activities so that organizational goals are
attained; often described as “doing the right things” (see Exhibit 1-2).
9. Researchers at Harvard Business School have found that the most important
managerial behaviors involve two fundamental things: enabling people to move
forward in their work and treating them decently as human beings. What do you
think of these two managerial behaviors? What are the implications for someone,
like yourself, who is studying management?
Students vary in the degree to which they see businesses as entities that care and
concern for their employees. However, most managers realize that it is a
manager’s jobs to develop an employee’s skill level and to make sure that they are
also developing as individuals. Both of these practices, in the end, will increase an
employee’s performance. Skills of job candidates have become important to
employers because of today’s demanding and rapidly changing workplace and
employees need to be self-motivated to constantly upgrade their skills and take on
extra work outside of their own specific job area. In addressing the implications of
these behaviors with students, the discussion could include what happens when
organizations treat their employees well or poorly.
10. “Management is undoubtedly one of humankind’s most important inventions.”

Do you agree with this statement? Why or why not?
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While most people do not see ‘management’ as an invention, it is safe to say that
without the principles of management and the guidance of managers in
organizations, we as a society would not have reached the level of development
that we enjoy today. The goal of management centers on the art of getting things
done. Without organizations and their managers, it would be impossible to
accomplish what has been done in history so far. It is has always been up to
managers to coordinate and oversee work activities in the art of getting things done
in the areas of agriculture, medicine, science, and manufacturing.
Chap 2: Understanding Management’s Context:

Constraints and Challenges
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Case Application: Out of Control
Summary in relation to chapter:
The “Out of Control” case is related to the chapter in several ways however; we will
summarize how the issues presented in this case are directly related to
organizational culture. As a brief background, organizational culture is the shared
values, principles, and traditions, and overall ways of doing things that influence the
way organizational members act. In “Out of Control” the company wanted to try
new ways to reduce cost and achieve a greater portion of their industry’s market
share. By doing so however, Toyota shifted its organizational culture to a less
favorable one by their stakeholders. Though all the dimensions of organizational
culture presented in exhibit 2-5 on pg. 52 were affected by Toyota’s actions, the
primary dimensions affects were the company’s stability due to dishonorable
innovation and risk taking.
Discussion Questions:
Question 1: Using Exhibit 2-5 and the information from the case. Describe the
culture at Toyota Motor Corporation. Why do you think this type of culture might be
important to a carmaker?
Answer 1: Toyota is a well-recognized company with the title of being known as the
world’s largest carmaker. In order to have achieved such a title, Toyota has to have
key values that are deeply held and widely shared by its employees. Based on the
exhibit 2-5 Toyota has an innovative culture that is team oriented which allows them
to remain stable even while taking on risks. This type of culture might be important
to carmakers because Toyota owns 11.7 percent of the car industry’s market and
despite their organizational culture shift due to poor innovative risk taking when it
came to quality, other carmakers should find Toyota’s initial culture to be the reason
for their long-term success and growth.
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Question 2: How do you think a long-standing culture that had such a strong
commitment to quality lost its ability to influence employee behaviors and actions?
What lesson can be learned about organizational culture from this?
Answer 2: There could be several reasons as to why Toyota’s organizational culture

changed an its ability to influence employee behaviors and actions could be a large
factor in the organization’s shift. There are many dimensions to an organization’s
culture and a few of them could have lead to Toyota’s decreased connection with its
employees. Primarily, attention to details is a necessity when it comes to quality
assurance. The degree to which Toyota’s employees were executing precision,
analysis, and overall paying attention to the quality content of the car resulted in the
depletion of the cars they were making quality. However, a lack of attention to detail
comes from the degree to which the managers of the company focused on results
or outcomes rather than how the outcomes were achieved. If employees created a
car and managers were the ones who assured the quality of the car before it was
distributed to dealerships, and if the managers are only driven by profit or gains,
then the outcome orientation of the company is low. This is the primary reason
Toyota may have lost its ability to influence its employee’s behavior and actions.
A lesson that could be learned from the Toyota case is that companies should
realize that sacrificing quality or any other critical factors that can affect negatively
the stakeholders of your entity should be fully analyzed. Also, the risks and
outcomes should be examined and weighted to see is it worth doing and how will
those risks and outcomes will affect the company in the future. The overall lesson is
geared towards companies and it teaches them that gains should be achieved in a
less risky way in order for the organization to be successful and experience growth.
Question 3: Do you think that it was important for Mr. Toyoda to apologize for the
company’s decisions? Why?
Answer 3: We strongly feel that Mr. Toyoda apology was necessary and important.
For Mr. Toyoda to publicly apologize for the company’s quality mistake showed the
public that the company actually cared about the casualties that may have been
could due to their lack of attention to detail and poor outcome orientation. It also
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showed that the company has a strong culture where key values that may be
presented throughout the organization are safety, creditability, and honesty.
The apology was also important because it allowed the company to state how they
were going to improve the quality of their products and also showed their future
initiatives for the company. In the long run, Toyota will be able to become more
successful because their stakeholders will be able to trust that the steps that they
are taking will result in continuous improvement for the overall organization.
Question 4: What could other organizations learn from Toyota’s experiences about
the importance of organizational culture?
Answer 4: There are many lessons that other organizations could learn from
Toyota’s experiences about the importance of organizational culture. We have
broken the lessons down by type of organization. If a company is a more stable
company, they could analyze Toyota’s issue and note that though their company is
more stable and mature, they should take on less risky innovative techniques or
strategies to assure that they are keeping the organizational culture that allowed
them to become a mature and stable company.
When it comes to newer companies, they could analyze Toyota’s experiences and
understanding that establishing an organizational culture that also benefits their
stakeholders will allow them to be an extremely successful company in the future.
This is because companies that have a strong culture, like Toyota, have a greater
connection with their stakeholders. Which allows for these companies to bounce
back when they may fail due to unsuccessful risks?
Answers to Review and Discussion Questions
1. Describe the two perspectives on how much impact managers have on an

organization’s success or failure.
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In section 1 of chapter 2, the omnipotent and symbolic views of management are

presented. The omnipotent view supports the idea that a manager is directly
responsible for the success and failure of the organization. Top CEO’s (and head
football coaches) would be more likely to be held accountable for the entire
organization’s outcomes while lower level managers would be held responsible for
the outcomes in their respective departments. This view adopts the premise that
managers set the priorities/goals of the organization and are responsible for making
major success oriented decisions. If the goals and decisions managers choose are
correct, then the organization should thrive. The symbolic view is a counterpart to
the omnipotent view and asserts that much of an organization’s success or failure
can be attributed to factors in the external environment, such as competition,
economic conditions, or governmental influences. According to this view,
management decisions are often flawed and poorly implemented due to factors
beyond their direct control. Considering the random and ambiguous situations
manager’s face, they should not be held responsible for organizational
performance.
2. Why is it important for managers to understand the external environment

components?
The external environment consists of numerous factors that have an impact on the
organization. Political and legal factors (such as government regulations),
demographics that affect labor supply, and technological developments directly
affect the management of an organization, including planning and decision-making.
3. Describe an effective culture for (a) a relatively stable environment and (b) a
dynamic environment. Explain your choices.
An effective culture for a relatively stable environment would likely emphasize
outcomes such as quality and productivity and would give significant attention to
detail. It would not require high levels of innovation, risk taking, or aggressiveness.
Conversely, an effective culture for a dynamic environment would likely em-phasize
aggressiveness, innovation, risk taking, and team orientation. To stay on top of
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continual environmental changes, this organization would have a culture that

celebrates productive work behaviors.
4. “Businesses are built on relationships.” What do you think this statement means?
What are implications for managing the external environment?
Organizations depend on their environment and their stakeholders as a source of

inputs and a recipient of outputs. Good relationships can lead to organizational
outcomes such as improved predictability of environmental changes, more
successful innovations, greater degrees of trust among stakeholders, and greater
flexibility in acting to reduce the impact of change. In addition, relationship
management and maintaining good relationships have been proven by many
researchers to have an effect on organizational performance. High-performing
companies tend to consider the interests of all major stakeholder groups as they
make decisions.
5. Refer to Exhibit 3-3. How would a first-line manager’s job differ in these two
organizations? How about a top-level manager’s job?
In Organization A, strong attention would be given to detail, with little innovation and
risk taking. Teamwork would not be encouraged, and employees would be viewed
as a means to an end. Strict controls would be placed on workers, and task
achievement would be most important. The supervisor would have little latitude and
would do things “by the book.”
In Organization B, innovation and risk taking would be highly encouraged. The
supervisor would have more autonomy in how to achieve goals. Employees would
be given the opportunity to provide input, and a team approach would be used.
People would be viewed as important contributors. The supervisor’s job would be
more like that of a coach, encourager, and facilitator.
6. Classrooms have cultures. Describe your class culture using the seven
dimensions of organizational culture. Does the culture constrain your instructor?
How?
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Answers to this question will vary. Have students look at the seven dimensions of
organizational culture described in the text and rate them from high to low for the
class. One point you might want to explore: What role does your instructor play in
establishing the culture of the classroom? Ask students to relate this information to
the role a manager might play in establishing the culture of a business organization.
7. Can culture be a liability to an organization? Explain.
In some cases, organizational culture could be a liability. In the global environment,

a society that discriminates on the basis of ethnicity or gender or in the exploitation
of workers could experience a backlash from the reactions of consumers in other
nations. (See, for example, Reebok’s and Nike’s problems regarding manufacturing
in emerging nations.)
8. Discuss the impact of a strong culture on organizations and managers.
At one time, researchers supported a direct connection between the strength of an

organizations culture and its performance. Today, we know that the strength of an
organization’s culture is more closely tied to acceptance of an organization’s values.
Exhibit 2-7, gives five employee related outcomes of strong vs. weak cultures. In
the end, strong cultures aid a manager in fulfilling their functions: planning,
organizing, leading and controlling.
9. Using Exhibit 2-8, explain how a culture is formed and maintained.
Culture is established and maintained through the transmission and adoption of

values. Following the figure from left to right, we see that the founder, through the
values they choose for the organization, is the person most responsible for setting
the organizational culture. The strength of founder values is then reinforced by the
employees chosen for the organization. Employees who are selected for their fit
with the founder’s values will carry on the culture better than those who do not
adopt his/her values. As the time increases from the start of the organization by the
founder, top management values become important. Top management may attempt
to modify or significantly change the values of the company. Socialization is the
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process by which employees learn the culture. They do this from learning the
company’s philosophy, artifacts, ceremonies, and language.
10. Explain why workplace spirituality seems to be an important concern.
This movement is important for several reasons. First, as work becomes more
hectic and jobs uncertain, employees are looking for ways to cope with the stresses
of a turbulent pace of life. Second, contemporary life styles have shown the lack of
community many employees feel, and baby boomers are looking for something
meaningful beyond their work.
Chap 5: Managing Social Responsibility and Ethics

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1. Differentiate between social obligation, social responsiveness, and social

responsibility.
These terms differ by degree to which the organization is willing to go past what is
legally required and engage in behavior is more altruistic and serving the public
good. Social obligation occurs when a firm engages in social actions because of its
obligation to meet certain economic and legal responsibilities. Social
responsiveness is seen when a firm engages in social actions in response to some
popular social need. Social responsibility is a business’s intention, beyond its legal
and economic obligations, to do the right things and act in ways that are good for
society.
2. What does social responsibility mean to you personally? Do you think business
organizations should be socially responsible? Explain.
Students’ answers to this question will vary. Their responses should indicate an
understanding that social responsibility means going “beyond the minimum required
by law.” Students should pinpoint and discuss why they feel business firms should
or should not be socially responsible.
3. What is green management and how can organizations go green?
Green management occurs when organization align their goals with those that
preserve the natural environment. Approaches to going green include the legal (or
light green) approach, the market approach, the stakeholder approach, and the
activist approach. Each of these varies with respect the company’s commitment to
protecting the environment. Organizations can go green by producing products that
are safer for the environment or produce less waste, encourage employees and
customers to engage in environmentally friendly behavior (i.e. drive less and bike to
work), or donate to foundations that promote projects for saving the natural
environment.
4. What factors influence whether a person behaves ethically or unethically?

Explain all relevant factors.
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This issue is addressed in Section 5.3 and Exhibit 5-3 shows the complex
interactions that influence whether a person acts ethically or unethically when faced
with an ethical dilemma. Students may focus on all eight factors or choose those
that they see as more pertinent.
5. Do you think values-based management is just a “do-gooder” ploy? Explain your

answer.
If viewed as an actual approach to managing and not just a series of guidelines,

values-based management can be much more than a “do-gooder” ploy. When an
organization actually practices values-based management, managers use the
company’s shared values as they make decisions and do their jobs.
6. Discuss specific ways managers can encourage ethical behavior.
The text list eight suggestion: employee selection, establishing a code of ethics, top
management leadership and commitment, realistic employee goals, aligning
performance appraisals with high ethical standards, ethics training, independent
social audits, and protective mechanisms to help employees who report ethical
violations within the company. Companies may use a variety of methods to
encourage ethical behavior and are not limited to those given in the text.
7. Internet file sharing programs are popular among college students. These
programs work by allowing non-organizational users to access any local network
where desired files are located. Because these types of file sharing programs tend
to clog bandwidth, local users’ ability to access and use a local network is reduced.
What ethical and social responsibilities does a university have in this situation? To
whom do they have a responsibility? What guidelines might you suggest for
university decision makers?
Students will probably come up with different answers to this question. Answers
may indicate whether they believe the network system belongs to them, based on
the payment or nonpayment of campus computing fees. A discussion of the
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particular view of ethics (utilitarian versus rights) should be included. You may also
want to discuss current offerings of various Internet file sharing programs, the
concept of unlimited access on demand, and related litigation issues.
8. What are some problems that could be associated with employee whistle-blowing
for (a) the whistle-blower and (b) the organization?
The whistleblower might find that peers, managers, and other company employees
ostracize him or her. For example, the whistleblower may encounter difficulty in
accomplishing tasks and/or obtaining needed resources while remaining employed
at the organization.
The organization itself may struggle with a tarnished reputation if the whistle-
blowing incident becomes public. Other employees may watch to see what happens
and how the organization treats whistleblowers. A pattern for future ethical or
unethical behavior can be set by the organization’s response to a whistleblower.
9. Describe the characteristics and behaviors of someone you consider to be an

ethical person. How could the types of decisions and actions this person engages in
be encouraged in a workplace?
Ethical individuals are likely to have a strong values system that they use to
distinguish right from wrong. Ethical persons will probably be in Stage 4, 5, or 6 of
moral development. These individuals will likely have strong convictions; that is,
their ego strength will be high. This person will probably have an internal locus of
control.
Ethical managers make decisions and engage in work activities that support their
values. These managers probably challenge what they perceive as ethically
questionable decisions or actions. If an organization wants its managers to uphold
high ethical standards, ethics must be included in the organization’s performance
appraisal process.
10. Explain the ethical and social responsibility issues facing managers today.
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These issues fall within three categories: managing ethical lapses, social
entrepreneurship and promoting positive change. Ethical lapses can occur at all
levels of the organization, however, we certainly hear more about the unethical
behavior of top management and leaders than individuals with less power. Included
with the issue of ethical lapses are the people who raise ethical issues of
organizations in the press (i.e. whistleblowers). Social entrepreneurs are individuals
who seek opportunities to improve society, for example the opening Manager’s
Dilemma and CEO of TOMS shoes. Promoting positive social change is another
important issue and includes the efforts of the organization which donate to
charitable organizations and individual employees who volunteer their own time to
make an impact.
Chap 7: Managers as Decision Makers
Case Application: The Curtain Falls

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Question 1: Would you characterize television-programming decisions as structured

or unstructured? Explain. What type of decision-making conditions would you
consider this to be? Explain.
Answer 1: We would characterize television-programming decisions as both

depending on the problem or situation the television programming is facing. It can
be structure in that television managers such as directors and producers can look
back on similar problems that may have occurred in the industry and see how the
situation was handled at that time; by which they can analyze straightforwardly
familiar problem and solve them accordingly. However, in the case “The Curtain
Fall,” once the ratings of the Leno’s show started to fall, the television programmed
was faced with uncertainty considering for years the show had high ratings and
great viewership. For such reasons television programming decisions can be
unstructured due to the uncertainties that may accord randomly.
Question 2: What criteria did NBC use in evaluating its initial decision to move Leno
and O’Brien? Was that criteria appropriate? Why or why not?
Answer 2: “Once a manager has identified a problem, he or she must identify the
decision criteria that are important or relevant to resolving the problem.” In “The
Curtain Fall” case, NBC evaluated the problem by looking at the host, other
networks related shows at the same given time, audience happiness, the talent, and
the advertisers. The criteria of looking at the primary stakeholders of the show
allowed NBC to make a critical decision in determining that Leno should return to
the Tonight Show and that O’Brien should leave with incentive. This was a great
criteria to follow because the ratings after the decision was made increased and
everyone was content with the change.
Question 3: Evaluate Jeff Gaspin’s Statement, “ I don’t think its wrong to take
chances…Sometimes they work. Sometimes they don’t.” What does it say about his
decision making style?
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Answer 3: Jeff Gaspin’s statement implies that he has a nonlinear thinking style,
which is characterized by a preference for internal sources of information (feelings
and intuition) and processing such information with internal insights, feelings, and
hunches to guide decisions and actions. Because of this, Jeff’s decision-making
style is centered around how he feels about the decision rather than logical facts
and context clues. Jeff believes in taking chances/calculated risks despite the
uncertainty of the results. In some business setting this mentality would work
perfectly fine, but with an industry such as television, which is heavily dependent on
viewership and advertisement, taking chances may or may not work.
Question 4: Describe how NBC executives could have used each of the following to
make better decisions: (a) Rationality, (b) Bounded rationality, (c) Intuition, and (d)
evidence-based management
Answer 4:
(a) NBC executives could have used rationality to make logical decision choices to
maximize their value. We feel that the NBC executives used rationality when
deciding that Leno should return to the Tonight Show because when looking back
on the shows most successful years, Leno was the host, so when thinking rationally,
the executive decided to have Leno return to the Tonight Show to increase ratings
and overall value.
(b) NBC executives could have used bounded rationality to make decisions
rationally by looking at the ways they were limited to how they processed
information. In the case, the executives did use bounded rationality because they
were able to identify the problem and address it accordingly by making substantial
changing to their programming for their long-term success.
(c) NBC executives used intuition because from the basis of their experience,
feeling and accumulative judgment of what was happening to the future of their late
night programming, they were able to make a decision that allowed for the
progression of their most valued show (The Tonight Show).
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(d) NBC executives used evidence based management when they developed a
systematic way of evaluating the evidence that showed rating droppings.
Accordingly, the executives were able to make a decision to move Leno back to the
Tonight Show and save the future of the programming itself.
1. Why is decision making often described as the essence of the manager’s job?
Decisions are made throughout the performance of all four functions of

management. Almost anything a manager does in terms of planning, organizing,
leading, and controlling involves decision making. The pervasiveness of decision
making in management explains why managers are often called decision makers.
2. Describe the eight steps in the decision-making process.

The decision-making process consists of eight steps: (1) identify problem; (2)
identify decision criteria; (3) weight the criteria; (4) develop alternatives; (5) analyze
alternatives; (6) select alternative; (7) implement alternative; and (8) evaluate
decision effectiveness.
3. Compare and contrast the four ways managers make decisions.
The assumptions of rationality are as follows: the problem is clear and

unambiguous; a single, well-defined goal is to be achieved; all alternatives and
consequences are known; and the final choice will maximize the payoff. Bounded
rationality says that managers make rational decisions but are bounded (limited) by
their ability to process information. Satisficing happens when decision makers
accept solutions that are good enough. With escalation of commitment, managers
increase commitment to a decision even when they have evidence it may have
been a wrong decision. Intuitive decision making means making decisions on the
basis of experience, feelings, and accumulated judgment. Using evidence based
management, a manager makes decisions based on the best available evidence.
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4. How might an organization’s culture influence the way in which managers make
decisions?
An organization’s culture might influence how managers make decisions by

indicating how much risk taking is permitted and how much importance is placed on
the effectiveness of the decisions made. For example, if an organizational culture
rewards decisions that reinforce the status quo, these types of decisions will likely
be made.
5. Explain the two types of problems and decisions. Contrast the three decision-
making conditions.
Programmed decisions are repetitive decisions that can be handled by a routine

approach and are used when the problem being resolved is straightforward, familiar,
and easily defined (structured). Non-programmed decisions are unique decisions
that require a custom- made solution and are used when the problems are new or
unusual (unstructured) and for which information is ambiguous or incomplete.
Certainty is a situation in which a manager can make accurate decisions because
all outcomes are known. Risk is a situation in which a manager can estimate the
likelihood of certain outcomes. Uncertainty is a situation in which a manager is not
certain about the outcomes and can’t even make reasonable probability estimates.
6. All of us bring biases to the decisions we make. What types of biases might a
manager have? What would be the drawbacks of having biases? Could there be
any advantages to having biases? Explain. What are the implications for managerial
decision making?
Students should be encouraged to identify biases that they have encountered or

feel that they themselves might have. Examples could include the halo/horn effect,
cultural biases, and age biases. The drawback of biases is their limiting effect on
behavior. However, when managers are aware of potential biases, they can use
their awareness to an advantage. They can better recognize biases held by others
and respond more effectively as a result of their knowledge. Managers should be
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aware that biases can “cloud” a decision maker’s identification or evaluation of

alternatives, which ultimately affect the final decision.
7. Would you call yourself a systematic or intuitive thinker? What are the decision-
making implications of these labels? What are the implications for choosing an
employer?
Student responses to these questions will vary. A systematic thinker is one who is
more logical and rational in searching for and processing information. An intuitive
thinker relies more on instincts and past experiences in searching for and
processing information. The decision-making implication of this label is that it
describes the way we think or process information and in turn, influences how we
tend to make decisions. Organizations need both systematic and intuitive thinkers.
Each of these styles provides a different perspective.
8. “As managers use computer and software tools more often, they’ll be able to
make more rational decisions.” Do you agree or disagree with that statement?
Why?
Although computer and software tools allow managers to gather information and
analyze it more efficiently, utilizing computers does not necessarily allow managers
to be more rational. Looking at the assumptions of rationality (see Exhibit 7.7), it is
apparent that adding computers to the decision-making process does not guarantee
perfectly rational decision making by managers.
9. How can managers blend the guidelines for making effective decisions in today’s
world with the rationality and bounded rationality models of decision making, or can
they? Explain.
A balance is required. Under today’s business conditions (such as intense time

pressure and higher degrees of risk and uncertainty), managers must practice
sound decision-making approaches. Knowing when it’s time to quit, for example, is
not inconsistent with rationality and bounded rationality.
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10. Is there a difference between wrong decisions and bad decisions? Why do
good managers sometimes make wrong decisions? Bad decisions? How can
managers improve their decision-making skills?
Time pressures, incomplete information, and higher levels of uncertainty in today’s

business environment may lead to ineffective decision making. Managers can
improve their decision-making skills by focusing on six characteristics of effective
decision-making, including focusing on important criteria, logic and consistency;
blending subjective and objective thinking with analysis; requiring the information
necessary to resolve a particular dilemma; gathering relevant and informed
opinions; and remaining flexible.
Chapter 8: Foundations of Planning
Case application: Building a future

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Question 1: What role do you think goals would play in planning the change in
direction for the company? List some goals you think might be important. (Make
sure these goals have the characteristics of well-written goals.)
Answer 1: I think goals are essential for this company when it comes to planning the
change in direction because they need to have an idea in mind and where exactly
they want to go, or their outcome with a new direction, which will lead to figuring out
how they are going to get there. Some goals that may be important are: have a
contract with Honda and Toyota for dashboard systems in the Asian market within
the next five years, add three more new features to the next Garmin product within
the next three years to compete with smartphone GPS, and promote innovative and
“out-of-the-box” style thinking in the workplace daily where all organizational
members feel they contribute.
Question 2: What types of plans would be needed in an industry such as this one?
(For instance, long-term or short-term, or both?) Explain why you think these plans
would be important.
Answer 2: I believe this industry, or any industry, should always have long-term and
short term plans and goals. Two of the goals I listed above would be long-term ones
with a time frame beyond three years. I believe they should have short-term plans
when it comes to details on new products or designs catering to how they want to
improve the product and sales. They should also have specific plans for how exactly
they want this new direction to go while having directional plans to promote the
creativity in the workplace, which could lead to new ideas. I believe all these kinds
of plans are important because a company should always be goal-oriented and
have the future in mind being as prepared as possible for any outcome or change.
Question 3: What contingency factors might affect the planning Garmin executives
have to do? How might those contingency factors affect the planning?
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Answer 3: The contingency factors that might affect the planning Garmin executives
have to do are commitment concept and environmental uncertainty. Garmin
executive may have big goals they want to accomplish with shifting in a whole new
direction, but it will take time to transition the company, system, and structure to
meet these future commitments. Therefore their new ideas may have to be longer-
term goals in order to meet them. Environmental uncertainty is when the factors or
changes in the external environment are unknown, especially in the marketplace, so
managers have to be prepared to change when necessary and go with the flow so
to speak.
Question 4: What planning challenges do you think Garmin executives face with
continuing to be the global market leader? How should they cope with those
challenges?
Answer 4: I believe this company just needs to remember they are a global leader;
so many competitors are vying to be in their position and one-up them. They must
have planning as an ongoing process, constantly wanting to improve and stay on
top as well. They should utilize environmental scanning by screening information to
detect emerging trends and be ready to follow or move with those trends and
changes. They must also stay up to date on their competitors to they can anticipate
what they may do next instead of being caught off guard, just reacting to them, or
even falling behind.
1. Explain what studies have shown about the relationship between planning and
performance.
It should be noted that one cannot say that organizations that formally plan always
outperform those that don’t plan. However, studies have indicated that formal
planning is often associated with positive financial results. Generally, performance
is also higher in those organizations where planning is present. And, when higher
performance is not the result of formal planning, often the reason is due to
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something in the external environment. Finally, studies indicate that at least four
years of formal planning are necessary before performance is affected.
2. Discuss the contingency factors that affect planning.
The first contingency factor is a manager’s level in the organization. Typically,

lower-level managers are operational planners, while upper-level managers are
strategic planners. Second, with environmental uncertainty, plans should be
specific, but flexible. And third, the length of future commitments can greatly affect
planning.
3. Describe how managers can effectively plan in today’s dynamic environment
Environmental uncertainty is a constant. Therefore, managers should develop

plans that are specific yet remain flexible. If managers recognize that planning is an
ongoing process, then when a dynamic environment is encountered, managers can
adapt readily. Another way to assist with planning is to craft an organizational
hierarchy that is relatively flat. Allowing lower level managers to set goals and
develop plans is an effective way to deal with a dynamic environment.
4. Will planning become more or less important to managers in the future? Why?
Planning will become more important to managers in the future because of the
uncertainty in an increasingly dynamic environment. Changes constantly occur in
both the general and specific environments of organizations, and many of these
changes take place rapidly. Planning helps managers cope with the uncertainty by
forcing managers to look ahead, anticipate change, consider the impact of the
change, and develop appropriate responses.
5. If planning is so crucial, why do some managers choose not to do it? What would
you tell these managers?
Managers may choose not to devote time to planning because they do not know
how to plan or feel that they do not have the necessary time. Others may say that
planning is a waste of time, that the future is going to happen whether or not they
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plan. However, these reasons do not discount the importance of planning. Every
manager should engage in planning.
6. Explain how planning involves decisions today that will have an impact later.
As managers plan, they make decisions that influence how activities are organized,
how employees are managed, and what control mechanisms are implemented. As
managers look to the future by planning, the decisions they make as they plan will
have an impact on their other managerial activities.
7. How might planning in a not-for-profit organization such as the American Cancer

Society differ from planning in a for-profit organization such as Coca-Cola?
The process of planning is similar, but the content of the plans will differ. The types
of objectives that are established and the plans that are formulated will be
influenced by the fact that a not-for-profit organization does not have profit as its
major objective. However, a not-for-profit organization must devote efforts and
resources to planning how to raise funds and to recruit volunteers to achieve its
mission.
8. What types of planning do you do in your personal life? Describe these plans
in terms of being (a) strategic or operational plans, (b) short or long term plans, and
(c) specific or directional plans.
Students’ responses to this question will, of course, vary. Students may mention
their planning to meet educational and career goals. Encourage your students to
think about their everyday lives and the types of daily, weekly, monthly, and yearly
planning they do.
9. The late Peter Drucker, an eminent management author, coined the SMART
format for setting goals back in 1954: S (specific), M (measurable), A (attainable), R
(relevant), and T (time bound). Are these still relevant today? Discuss.
Of all of the material presented in this chapter, most students will readily recall this
acronym for goal setting. These qualities from Drucker have remained basically
unaltered and have been cited in numerous texts and studies. As a part of student
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discussion, try to find other application for Drucker’s work in this area beyond the
management of employees. What about for school children? Volunteers working
for a community program?
10. Many companies have a goal of becoming more environmentally sustainable.

One of the most important steps they can take is controlling paper waste. Choose a
company—any type, any size. Imagine that you’ve been put in charge of creating a
program to control paper waste for the company. Set goals and develop plans.
Prepare a report for your boss (that is, your professor), outlining these goals and
plans.
It should also be stressed to students that plans must be accepted by top

management and as well as employees at lower levels if it is to be effectively
implemented. Have students discuss the difficulty of implementing a plan such as
this across levels. How could students increase buy-in of the plan? How would
such a plan be ultimately evaluated to determine its success? Using criteria
discussed in the previous question, have students check that their goals match the
SMART format.
Chapter 9: Strategic Management
Case Application: Gaga Over Gaga
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Question 1: How is strategic management illustrated by this case story?
Answer 1: Lady Gaga’s ability to make a tremendous impact in such a difficult

industry with her savvy awareness of the power of digital media and exceptional
skill to exploit it has helped catapult her career by strategic management. Formerly
known as Stefani Germanotta, her occupation consisted of singing and waitressing
in unpromising clubs in New York. With her lack of fan base and current success,
the likelihood of her personality and talent level to be recognized seemed close to
impossible. Yet though her persistence and strategic decision-making she received
a deal to be signed with Def Jam which helped assist in initially getting her foot in
the door. From her contribution to the music and business industry today, Lady
Gaga has set a precedent that is nothing short of extraordinary. Building a special
bond with her fans and calling them “Little Monsters”, partnering with MAC
Cosmetics to raise funds for AIDS awareness and creating a “larger-than-life”
personality have all been key staple choices made in her career to help strategically
manage and sustain her career. A component that is important to note is her ability
to be innovative. Lady Gaga upon first being introduced to the public was extremely
innovative. She created a trend that was unlike any other figure in the industry at
that time. As a result, it was her differences that she embraced that helped attract
her now adoring loyal fans.
Question 2: How might SWOT analysis be helpful to Lady Gaga as she and her
advisors manage her career?
Answer 2: A properly adequate way to assess her management is to analyze Lady

Gaga’s internal and external controls and exhaust all options. In particular, the
SWOT analysis may be helpful for this artist to provide insight. Examining Lady
Gaga’s career from an internal standpoint, there are strengths and weaknesses to
focus on that can either advance or hinder her career. For strengths, among her
peers, she is one of the most engaging artists currently out there on the market.
With her current 42.5 million-follower count on twitter and an estimated net worth of
$110 million she is evidently doing something right. As a strategy that many artists
are now beginning to adopt is the 360-degree deal. This deal has been put in place
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as to counter the declining revenue that many artists struggle with. From this Lady
Gaga and her group invest in large sums of money upfront with expectations of a
greater return. Her ability to capitalize on merchandise, concert tours and
appearances plays to her benefit. Her knowledge of utilizing social media is strength
as well.
To accompany her skill of utilizing her team she also has unique vocals and a
persona to compliment. Weaknesses may include her vibrant personality that the
public may now unfortunately be accustomed to. This adds pressure for Lady Gaga
to consistently or inconsistently find ways to evolve. From an external viewpoint
there are opportunities and threats that she must pay close attention to. The threat
of new entrants is not very likely due to the competitive nature of the business.
While there are several other celebrity figures that strive to differentiate themselves
they generally have their own audience---artists like Nicki Minaj and Rihanna often
come to mind. In terms of threat of substitutes, there is little to none because Lady
Gaga is the only “extremist” in terms of music for that genre. Bargaining power of
buyers is high because this is ultimately what keeps her in business. With today’s
generation Lady Gaga must continuously find ways to appeal to individuals to
legally purchase her materials. Bargaining power of supplies is low because there
are many sources that Gaga can use to help create the final product of her albums
and any other item associated. Lastly, the current rivalry is moderate due to the
celebrities that have already established themselves. Understanding the business
and how to assess it can profoundly helpful to Lady Gaga and advisors manage her
career.
Question 3: What competitive advantage do you think Lady Gaga is pursuing? How
is she exploiting that competitive advantage?
Answer 3: In order for Lady Gaga to remain a relevant entertainer the competitive
strategy she relies on is the differentiation focus. Lady Gaga has a declared target
audience and segment in the market that she makes her music for, her “Little
Monsters”. Through this she created a distribution channel, which receives much of
its credit from the LGBT community that she often highlights in her songs, concerts
and appearances she frequently makes. The actions that Lady Gaga partakes in
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have the tendency to be outrageous yet feasible. The variety of costumes and
performances are eye-catching and outlandish but she ensures that it does just that.
It is with high intention that she captures and demands the attention to build her
global presence. The teams’ management in emphasizing her decisions has helped
in her chart-topping singles. At only the age of 28 she has been awarded five
Grammy’s, 13 MTV Video Music Awards and has been named as one of the world’s
most influential people from Time Magazine. Her philanthropic endeavors also play
a role in where she is today. Her performances receive positive reviews that are
critically acclaimed. Her competitive strategy is one that dynamically envisions new
possibilities to maintain her success.
Question 4: Do you think Lady Gaga’s success is due to external or internal factors
or both? Explain.
Answer 4: While there are many factors to consider Gaga’s success is arguably due
to her external factors. How well she is able to adapt to the market and her
competitors displays her level of expertise in the business. Understanding the
difficulty it is for new entrants to enter is one major factor, which Lady Gaga has
surpassed and accomplished. So early in her career she was recognized for her
new sound and unique messages. This in turn proves why artists like Britney
Spears, Fergie and New Kids on The Block have all hired her to share her
songwriting skills. With the common saying, “if you can’t beat them, join them” holds
true. Iconic legends like Tony Bennet have recently decided to join forces with the
“Fame” artist herself. She continuously pushes the envelope and is proactive in her
approach. Rather than wait to see what her competitors will do she does exactly
what she wants to do, which is a very wise choice for her. Many of her competitors
have an image to uphold so that they can maintain their audience and remain a
certain type of character but due to who she is goes against the popular mainstream
crowd to further distinguish herself.
Question 5: What strategic implications does the suggestion that her ability to
remain a music industry mainstay depends on her ability to evolve have?
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Answer 5: It is the goal for an individual in the music industry to remain a music
mainstay by their ability to evolve. With Lady Gaga’s first single, “Just Dance” it set
a good level of introduction to the public to show her fun, fierce, edgy side that was
welcoming. As stated in the case it is her persona seems to be a calculated strategy
that spans across dozens of subcultures. Her music style correlates to her
vivacious personality. Lady Gaga redefines herself each and every time she steps
foot in front of the public eye. As a fan the only thing you can expect is that she will
be different but it is always a surprise as to what extent. The strategy of being
unpredictable is not one that anyone can master. It takes a team of creative and
adventurous individuals to spawn these ideas that will launch her career to
something that is far larger than the character she already is. The process of
evolution requires the ability to critically think of what will advance the current and
next generation while avoiding what history has already created. Lady Gaga from
the beginning of her career has executed this tactic phenomenally and serves as a
model to follow in developing an effective strategy.
1. Explain why strategic management is important.
Strategic management is important for three reasons. First, it makes a difference in

how well organizations perform. Second, it’s important for helping managers cope
with continually changing situations. Finally, strategic management helps coordinate
and focus employee efforts on what’s important.
2. Describe the six steps in the strategic management process.
The six steps in the strategic management process encompass strategy planning,
implementation, and evaluation. These steps include the following: (1) identify the
current mission, goals, and strategies; (2) do an external analysis; (3) do an internal
analysis (steps 2 and 3 collectively are known as SWOT analysis); (4) formulate
strategies; (5) implement strategies; and (6) evaluate strategies. Strengths are any
activities the organization does well or unique resources that it has. Weaknesses
are activities the organization doesn’t do well or resources it needs but doesn’t
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have. Opportunities are positive trends in the external environment. Threats are
negative trends.
3. How could the Internet be helpful to managers as they follow the steps in the
strategic management process?
The Internet provides voluminous information conveniently and quickly about

competitors, environmental factors, and customers. This information improves the
manager’s ability to make sound strategic management decisions as he or she
faces continuously changing environmental conditions.
4. How might the process of strategy formulation, implementation, and evaluation

differ for (a) large businesses, (b) small businesses, (c) not-for-profit organizations,
and (d) global businesses?
All companies, large or small, profit or not-for-profit, domestic or global benefit from
the process of strategy formulation. The major difference that exists between the
different types of companies and the process they go through centers around the
development of their mission and goals. For example, the owners of a small
business might not want to pursue the goal of growth and instead focus on stability.
For not-for-profit organizations, the goal is not about making money for owners or
stockholders but about how to find a way to effectively and efficiently maximize their
resources to benefit others. In a global organization, while the SWOT would be
more involved due to the number of potential elements involved, it remains the
same except the goals extend beyond serving one country or market.
5. Should ethical considerations be included in analyses of an organization’s

internal and external environments? Why or why not?
Ethical considerations should permeate every activity of an organization. As a firm’s

strategy is the basis for their plans, when ethics are not considered then the
organization is likely to ignore potential ethical problems.
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6. Describe the three major types of corporate strategies and how the BCG matrix is
used to manage those corporate strategies.
A growth strategy is when an organization expands the number of markets served

or products offered, either through current or new businesses. The types of growth
strategies include concentration, vertical integration (backward and forward),
horizontal integration, and diversification (related and unrelated). A stability strategy
is when an organization makes no significant changes in what it’s doing. Both
renewal strategies—retrenchment and turnaround—address organizational
weaknesses that are leading to performance declines. The BCG matrix is a way to
analyze a company’s portfolio of businesses by looking at a business’s market
share and its industry’s anticipated growth rate. The four categories of the BCG
matrix are cash cows, stars, question marks, and dogs.
7. Describe the role of competitive advantage and how Porter’s competitive

strategies help an organization develop competitive advantage.
An organization’s competitive advantage is what sets it apart, its distinctive edge. A

company’s competitive advantage becomes the basis for choosing an appropriate
competitive strategy. Porter’s five forces model assesses the five competitive forces
that dictate the rules of competition in an industry: threat of new entrants, threat of
substitutes, bargaining power of buyers, bargaining power of suppliers, and current
rivalry. Porter’s three competitive strategies are as follows: cost leadership
(competing on the basis of having the lowest costs in the industry), differentiation
(competing on the basis of having unique products that are widely valued by
customers), and focus (competing in a narrow segment with either a cost advantage
or a differentiation advantage).
8. “The concept of competitive advantage is as important for not-for-profit
organizations as it is for profit organizations.” Do you agree or disagree with this
statement? Explain, using examples to make your case.
Not-for-profit and for-profit companies compete for customers. In the case of not-
for-profit companies, those customers are donors and like any market are limited in
size. To be effective non-for-profit companies need something that will attract
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donors like for-profit companies attract customers. For example, United Way has
an established network of businesses that regularly donate money as part of their
yearly pledge drives. Another example is Mary Komen’s, known for their work with
breast cancer awareness, that has established a series of runs and walks across
the United States and has even had success in publicizing their cause with the NFL.
9. Explain why strategic leadership and strategic flexibility are important.
Strategic leadership is the ability to anticipate, envision, maintain flexibility, think

strategically, and work with others in the organization to initiate changes that will
create a viable and valuable future for the organization and includes eight key
dimensions. Strategic flexibility—that is, the ability to recognize major external
environmental changes, to quickly commit resources, and to recognize when a
strategic decision isn’t working— is important because managers often face highly
uncertain environments
10. Describe e-business, customer service, and innovation strategies.
Using the Internet, companies have created knowledge bases that employees can
tap into anytime, anywhere. E-business as a strategy can be used to develop a
sustainable competitive advantage; it can also be used to establish a basis for
differentiation or focus. Customer service strategies give customers what they want,
communicate effectively with them, and provide employees with customer service
training. Innovation strategies focus on breakthrough products and can include the
application of existing technology to new uses. An organization that is first to bring a
product innovation to the market or to use a new process innovation is called a first
mover.
Chapter 10 Basic Organizational Design
Case Application: Ask Chuck
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Question 1: Describe and evaluate what Charles Schwab is doing.
Answer 1: It is easy for a company to lose sight of their goals. While other lines of
business may be potential money makers, going beyond a firm’s core competence
can lead a firm into financial trouble. In this case, students should see how Charles
Schwab has stayed true to its primary business - making stock trades for investors
who make their own financial decisions. Another goal of Schwab is customer
service. In the example of Cheryl Pasquale, we can see how she uses the
company’s information system to closely monitor her sales representatives to make
sure they are meeting the needs of customers.
Question 2: How might the company’s culture of not buying into hype and not taking
excessive risks affect its organizational structural design?
Answer 2: Schwab’s conservative culture would foster a simple structure

characterized by low departmentalization, wide spans of control, centralized
authority, and little formalization. This structure fast, flexible, inexpensive to
maintain and has clear lines of accountability.
Question 3: What structural implications—good and bad—might Schwab’s intense

focus on customer feedback have?
Answer 3: Schwab’s focus on customer feedback would indicate a flexible structure

that is able to adapt to meet customer demands. This structure would allow
employees to spend more time and energy devoted to improving relationships with
customers and possibly provide for exceptions to improve customer satisfaction.
On the other hand, building strong customer relationships takes time and money.
By paying so much attention to the customer there is the potential loss of efficiency
that Schwab has to maintain to keep stock transactions low.
Question 4: Do you think this arrangement would work for other types of
organizations? Why or why not?
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Answer 4: This type of customer focus would not work well for firms that operate on
a thin margin. For example, manufacturing firms that operate in the maturity phase
of the industry life cycle focus on keeping production costs as low as possible. This
arrangement may also not work well in situations where organizations are set up
around processes.
1. Discuss the traditional and contemporary views of each of the six key elements of
organizational design.
Traditionally, work specialization was viewed as a way to divide work activities into
separate job tasks. Today’s view is that it is an important organizing mechanism but
it can lead to problems. The chain of command and its companion concepts—
authority, responsibility, and unity of command—were viewed as important ways of
maintaining control in organizations. The contemporary view is that they are less
relevant in today’s organizations. The traditional view of span of control was that
managers should directly supervise no more than five to six individuals. The
contemporary view is that the span of control depends on the skills and abilities of
the manager and the employees and on the characteristics of the situation.
2. Can an organization’s structure be changed quickly? Why or why not? Should it

be changed quickly? Explain.
The speed with which structural changes can be implemented depends partly upon
an organization’s size. A small organization is usually able to change its structure
more rapidly than a larger one because a smaller company has fewer employees
who are involved in the restructuring process. However, a large organization can
change its structure and often does in response to changing environmental
conditions and changing strategies.
3. Contrast mechanistic and organic organizations.

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A mechanistic organization is a rigid and tightly controlled structure. An organic

organization is highly adaptive and flexible.
4. Would you rather work in a mechanistic or an organic organization? Why?
Students’ answers to this question will vary. Many students prefer the structure
provided by a mechanistic organization, whereas others would be less productive in
an organization with structural rigidity. Note that SAL #III.A.1 “What Type of
Organization Structure Do I Prefer?” addresses whether each of your students
would like to work in a bureaucracy (a mechanistic organization). Students might
want to revisit this assessment in answering this question.
5. Explain the contingency factors that affect organizational design.
An organization’s structure should support the strategy. If the strategy changes, the
structure also should change. An organization’s size can affect its structure up to a
certain point. Once an organization reaches a certain size (usually around 2,000
employees), it’s fairly mechanistic. An organization’s technology can affect its
structure. An organic structure is most effective with unit production and process
production technology. A mechanistic structure is most effective with mass
production technology. The more uncertain an organization’s environment, the more
it needs the flexibility of an organic design.
6. Contrast the three traditional organizational designs.
A simple structure is one with low departmentalization, wide spans of control,

authority centralized in a single person, and little formalization. A functional structure
groups similar or related occupational specialties together. A divisional structure is
made up of separate business units or divisions.
7. With the availability of advanced information technology that allows an
organization’s work to be done anywhere at any time, is organizing still an important
managerial function? Why or why not?
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Although an organization’s work may be done anywhere at any time, organizing

remains a vital managerial function because the work that must be accomplished
still must be divided, grouped, and coordinated.
8. Researchers are now saying that efforts to simplify work tasks actually have
negative results for both companies and their employees. Do you agree? Why or
why not?
Studies as far back as 1924 show that simplified jobs lead to boredom. In 1950
other researchers found that highly segmented and simplified jobs resulted in lower
employee morale and output. Other consequences of low employee motivation
include absenteeism and high employee turnover, both very costly for businesses.
Chapter 11 Adaptive Organizational Design
Case Application: The Virus Hunters

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Question 1: How might the nature of what the virus hunters do affect the most
appropriate structure for getting work done efficiently and effectively?
Answer 1: The nature of what the virus hunters do affects their structure for getting
work done efficiently and effectively simply because their work can never be
completed. They are always working to correct a new problem; as quick as one
virus goes away, two more will probably appear. They also have to research and
find viruses that are out there and tackle them before they do major damage to
many of the networks. In order to keep their customers happy, they have to perform
often and quickly.
Question 2: In fighting the onslaught of computer viruses, what will be the

challenges of managing a team of professionals and a group of customer
“volunteers”?
Answer 2: There will probably be many challenges when working with a mixed
group of professionals and customer volunteers. First is motivation; professionals
are probably motivated to perform at a higher level and to produce a quality project
because they are in a workplace environment. They are trying to perform well and
earn their wages; they are also competing with each other to be the most efficient
and productive in their team so they will surely take things very seriously. Another is
the level of knowledge. As professionals they will be experts but the volunteers
won’t be able to communicate as well with the professionals due to potential gaps in
knowledge of the subject. While customers do have some personal motivation in
terms of their network security, their professional success is not contingent on their
level of performance. Customers who are volunteering could potentially be helpful
but they could also slow the progress of a lot of research and development.
Question 3: What types of adaptive organizational designs discussed in this
chapter might be most appropriate for Symantec to most effectively manage its
professionals and its customer volunteers? Explain your choices.
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Answer 3: Probably the most appropriate organizational design is learning structure.

Because new viruses and bugs are being put out in the internet daily it is imperative
that Symantec is able to gain information about these viruses and figure out how to
get rid of them. They are constantly forced to adapt and make updates on their
current situations. The boundary less structure is also appropriate because the
teams are often getting outside talent and are more willing to use a huge diversity of
resources. Also the Team structure is appropriate. As the company is set up globally
and is communicating across the world with important information it is important that
the teams are able to adapt together and remain organized in a way that they can
perform seamlessly and consistently.
1. Describe the four contemporary organizational designs. How are they similar?
Different?
In a team structure, the entire organization is made up of work teams. The matrix
structure assigns specialists from different functional departments to work on one or
more projects being led by project managers. A project structure is one in which
employees continuously work on projects. A virtual organization consists of a small
core of fulltime employees and outside specialists temporarily hired as needed to
work on projects. A network organization is an organization that uses its own
employees to do some work activities and networks of outside suppliers to provide
other needed product components or work processes. A learning organization is
one that has developed the capacity to continuously learn, adapt, and change. It
has certain structural characteristics including an emphasis on sharing information
and collaborating on work activities, minimal structural and physical barriers, and
empowered work team.
2. Differentiate between matrix and project structures.
A project structure, unlike the matrix structure, has no formal departments where
employees return at the completion of a project. Instead, employees take their
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specific skills, abilities, and experiences to other projects. Also, all work in project
structures is performed by teams of employees.
3. How can an organization operate without boundaries?

While the term ‘boundaries’ may imply something akin to chaos, it refers to the idea
that organizations can operate effectively by remaining flexible and unstructured.
There are two types: (1) internal—the horizontal ones imposed by work
specialization and departmentalization and the vertical ones that separate
employees into organizational levels and hierarchies; and (2) external—the
boundaries that separate the organization from its customers, suppliers, and other
stakeholders. To minimize or eliminate these boundaries, managers might use
virtual or network structural designs.
4. The boundaries organization has the potential to create a major shift in the way
we work. Do you agree or disagree? Explain.
Students’ responses to this will vary. This question could serve as an interesting
springboard for a class debate. Students could break into teams, with each team
taking the opposite position in the debate. Give students an opportunity to discuss
their strategy as a team before presenting their viewpoints to the class.
5. What types of skills would a manager need to effectively work in a project

structure? In a boundaries organization? In a learning organization?
In all of these types of organizations, flexibility and adaptability are critical. In the
project structure, conflict management skills are particularly useful. In a boundaries
organization, the ability to interact effectively with people at all levels and in all areas
of the organization is crucial to success. In a learning organization, a manager
needs the ability to communicate both by listening and by speaking because of the
frequency and importance of sharing information in this type of organization.
6. How does each of the different types of collaboration (both internal and external)
contribute to more coordinated and integrated work efforts?
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An organization’s collaboration efforts can be internal meaning among employees

within the organization. Or those efforts can be external collaborations with any
stakeholders. In both types, it’s important that managers recognize how such
collaborative efforts “fit” with the organization’s structure and the challenges of
making all the pieces work together successfully.
7. What structural issues might arise in managing employees’ flexible work

arrangements? Think about what you’ve learned about organizational design. How
might that information help a manager address those issues?
Although an organization’s work may be done anywhere at any time, organizing

remains a vital managerial function because the work that must be accomplished
still must be divided, grouped, and coordinated. When organizations become more
flexible, control and authority become important issues. Without direct supervision
(in the case of telecommuting), lines of authority are weak and managers may feel
that a loss of control. On the other hand, in the case of telecommuting, employees
may feel left out of important organizational decisions or like they are not
considered for important assignments.
8. Does the idea of a flexible work arrangement appeal to you? Why or why not?
Students may respond several ways to this question. Flexible work arrangements
are not for everyone. An analogy is internet classes. While these classes offer the
student greater flexibility and help with scheduling issues, some students find that
they do not get as much from the class or that they lose focus and let the class
assignments build up.
9. What structural issues might arise in managing contingent workers? Again, think
about what you’ve learned about organizational design. How might that information
help a manager address those issues?
Organizing issues include classifying who actually qualifies as an independent

contractor; setting up a process for recruiting, screening, and placing contingent
workers; and having a method in place for establishing goals, schedules, and
deadlines and for monitoring work performance.
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10. Why is it a challenge to “keep employees connected” in today’s organizations?
This question seems strange with all of the communication technology available
today (i.e. cell-phones, e-mail, electronic meeting software, etc…). However, with
organizations adopting more flexible structures and flexible work arrangements,
employees are dispersed throughout the organization and the world. In addition,
with the introduction of team and project environments, it is possible that employees
will be working on so multiple projects at once. Considering these factors, it is
difficult to make sure everyone has the necessary information when and where they
need it.
Chapter 12: Managing Human Resources
Case Application: Social Connections
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Question 1: What are advantages and drawbacks of using social media in the
recruiting process for an applicant and a company?
Answer 1: Social media has completely revolutionized the way in which people all
around the world communicate. This form of communication has branched off from
just an individual level to a company level. Companies are now using social media
to both recruit and screen applicant. These methods for attracting top talent for
organizations are both beneficial and detrimental. The advantages of this
recruitment platform reach both an individual and organizational level.
On an individual level some of the benefits include, not being limited to the jobs
within your geographic location, access to recruiters at all levels, and being able to
learn about the company culture in an untraditional way. Corporations benefit from
this form of recruiting because it gives them access to a large number of potential
applicants. An added benefit to the large applicant pool is that many young college
students use social media. This allows a company to create relatable and flexible
systems for attracting young talent to entry level positions. Additional social media
recruitment has a low cost and a potentially high return on investment, it essentially
allows companies to screen applicants before they bring them in for an interview.
Some of the drawbacks to social media recruiting on an individual level include

individuals being denied for a job based on the content of their social profiles. Many
people use social media as an outlet for expressing themselves. With many
companies doing online screenings through social media, people are worried that
the content they place online will be scrutinized and cause them to lose a job or to
be denied one. Drawbacks for companies include recruiters denying access to jobs
of people based on their own agenda. In an imperfect world many people still face
discrimination. This discrimination happens on physically application and on social
media. Another drawback is the fact that once something is said on social media
people all around the world can see it. So if something is wrong with their page i.e. it
is hacked and someone places something that causes bad publicist it cannot be
delete. This large access to the world provides both a benefit and a number of
potential drawbacks. Companies who sue social media to recruit need to be careful
with the content they place online along with the people they give access to.
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Question 2: Is the use of social media in recruiting applicants a way to hire smarter
or a lawsuit waiting to happen? Explain your position.
Answer 2: The use of social media to recruit applicants in my opinion is a lawsuit

waiting to happen. Although the use of social media for recruiting was created with
the best intentions in mind, that purpose may not always be reached. Although we
live in a modern and globalized economy the employment of discrimination is still
relevant. Many people all around the world get discriminated on, based on gender,
race, disabilities, religion, and sexuality and although many companies wish to have
a perfect hiring process that isn’t possible. All it takes is one recruiter who has
access to the social media account to start a chain of lawsuits. Additionally many
people use social media as a place to relax and distress. First impressions are
lasting impressions and although recruiters try to be nonjudgmental once a photo or
a post is seen online that doesn’t always happen. The post or picture automatically
creates a message that the recruiter may acknowledge consciously or may not even
know of. This message might lead to a person not being hired which can also cause
a chain of lawsuits. Social media is a great place for companies to provide
information (Application deadlines, videos, information about the company) but it is
not the place to recruit.
Question 3: Go to Facebook and check out Ernst & Young’s page. What’s your
impression? Is it an attractive recruiting tool? Why or why not?
Answer 3: While on the Ernest & Young Company Facebook page I noticed that the
company has completely branded the profile with that of Ernest & Young signature
colors and logos. The company also made effort to personalize it to their firm by
placing pictures of the companies surrounding locations on the page. Although the
pictures might attract some potential employees I wasn’t very impressed. There
were multiple Ernest & Young company pages each one for a specific location (Sao
Paulo, Brazil and Mexico City, Mexico) and I appreciate the specificity and
customization of each page to the location. It would help if I was looking for specific
location related information. The profile would give me specific information instead
of general company information that doesn’t pertain to me. I like the break down by
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location because helps cater the message for people interested in a specifics
offices/ locations it helps filter down the amount of information being uploaded to the
page. There page wasn’t something that would make me want to apply to the
company but there strategic planning behind the page was appreciated.
1. How does HRM affect all managers?
Since a manager’s most valuable resource are the people who work in the
organization, obtaining the right employees at the right time and placing them in the
right places is essential for managerial success. To motivate, retain, and equip
these employees for optimal performance, a manager must have knowledge and
skill in human resource management.
2. Discuss the external environmental factors that most directly affect the HRM
process.
The external environmental factors that affect HR include economic conditions,

unionization, the legal environment and demographic trends.
3. Should an employer have the right to choose employees without governmental

interference? Support your conclusion.
Student responses to this question will vary. This question provides an excellent
vehicle for class debate. You might let half of the class take the perspective of
supporting government legislation and regulations and the other half assume the
position of opposing government legislation and regulations in this area.
4. Some critics claim that corporate HR departments have outlived their usefulness
and are not there to help employees, but to keep the organization from legal
problems. What do you think? What benefits are there to having a formal HRM
process? What drawbacks?
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Every organization must recognize the importance of legal and social responsibility
as a corporate citizen in the community. As students learn in the study of this
chapter, HRM is concerned with a wide spectrum of functions, and legal
considerations are a part of each of these HR functions. A formal process helps to
provide objective compliance with the law and promotes an attitude of fairness and
respect for the rights and welfare of all employees.
5. Describe the different selection devices and which work best for different jobs.
The different selection devices include application forms (best used for gathering
employee information), written tests (must be job-related), work sampling
(appropriate for complex nonmanagerial and routine work), assessment centers
(most appropriate for top-level managers), interviews (widely used, but most
appropriate for managerial positions, especially top-level managers), background
investigations (useful for verifying application data, but reference checks are
essentially worthless), and physical exams (useful for work that involves certain
physical requirements and for insurance purposes).
6. What are the benefits and drawbacks of realistic job previews? (Consider this
question from the perspective of both the organization and the employee.)
This question would be a good springboard for debate as well, with half of the class
looking at RJPs from the organization’s viewpoint and the other half of the class
looking at RJPs from the employee’s viewpoint. In addition, students should be
encouraged to describe occasions when they have received an RJP in an interview
setting. Students could also be encouraged to share aspects or characteristics of
jobs they currently hold that should be communicated by an interviewer to
prospective employees as part of an RJP in an employment interview.
7. Describe the different types of orientation and training and how each of the types
of training might be provided.
Orientation is important because it results in an outsider-insider transition that

makes the new employee feel comfortable and fairly well-adjusted, lowers the
likelihood of poor work performance, and reduces the probability of an early surprise
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resignation. The two types of training are general (includes communication skills,
computer skills, customer service, personal growth, etc.) and specific (includes
basic life/work skills, customer education, diversity/cultural awareness, managing
change, etc.). This training can be provided using traditional training methods (on-
the-job, job rotation, mentoring and coaching, experiential exercises,
workbooks/manuals, and classroom lectures) or by technology-based methods
CD/DVD/videotapes/audiotapes, videoconferencing or teleconferencing, or e-
learning).
8. List the factors that influence employee compensation and benefits.
The factors are: employee’s tenure and performance, kind of job performed, kind of
business, unionization, labor or capital intensive business, management philosophy,
geographic location, company profitability, and size of company.
9. Describe the different performance appraisal methods.
A written essay appraises performance through a written description of an

employee’s strengths and weaknesses, past performance, and potential. Critical
incidents are used to appraise performance by focusing on the critical job
behaviors. In this technique the appraiser writes anecdotes to describe what the
employee did that was especially effective or ineffective. The use of graphic rating
scales is one of the oldest and most popular performance appraisal methods. This
method appraises performance using a rating scale on a set of performance factors.
Graphic rating scales list a set of performance factors; the evaluator goes down the
list and rates the employee on each factor, using an incremental scale. Using
behaviorally anchored rating scales (BARS) is an appraisal approach that appraises
performance using a rating scale on examples of actual job behavior. BARS
combines major elements from the critical incident and graphic rating scale
approaches. The appraiser rates an employee according to items along a scale, but
the items are examples of actual behavior on the job rather than general
descriptions or traits. Multiperson comparison appraises performance by comparing
it with others’ performance. Management by objectives (MBO) is another
mechanism for appraising performance. It is often used to assess the performance
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of managers and professional employees. 360 degree feedback appraises

performance by using feedback from supervisors, employees, and coworkers.
10. What, in your view, constitutes sexual harassment? Describe how companies
can minimize sexual harassment in the workplace.
You might provide an opportunity for small group discussion of this question and
encourage students to research (perhaps on the Web outside of class) strategies
currently used by large and small companies to minimize sexual harassment in the
workplace. In the class session immediately following the small group discussions,
ask students to share their answers and opinions regarding issues raised by this
question.
Chapter 13 Managing Teams
Case Application: Aiming Higher
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Question 1: What challenges would there be to creating an effective team in an

organization that was growing by acquiring other companies? How could managers
deal with these challenges?
Answer 1: I always tell students, mergers (like marriages) involve the blending
together of two, or more, different personalities. Because members from both
organizations have established ways of doing things, it would be difficult to get team
members from both cultures to trust and communicate with each other. Managers
will need to give the new group time as well as the necessary resources to develop.
Goals for cooperation will need to be established in addition to rewards for team
success.
Question 2: Why do you think teamwork is crucial to Bancolombia’s efforts to forge

a single identity?
Answer 2: During a merger or acquisition, organizations can be kept separate or

they can be integrated. To get both organizations to integrate quickly, Bancolombia
has decided to use teamwork. The establishment of the team acts as a
superordinate goal, which gives members of the organization something to work
toward.
Question 3: How do identical office chairs and an open-space office contribute to

the emphasis on teamwork? How important is the physical workplace environment
to the development of a teamwork atmosphere?
Answer 3: The identical office furniture would help maintain equity between team
members – so individuals cannot claim favoritism. In another sense it could be
seen as creating an identity of being on the same team, like jerseys on a sports
team. The open-office space would provide more opportunity for team members to
interact with one another. By changing the physical workplace, the organization is
reinforcing the concept of a new beginning and divesting itself of old artifacts.

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1. Describe the different types of groups and the five stages of group development.
A group is two or more interacting and interdependent individuals who come

together to achieve specific goals. Formal groups are work groups that are defined
by the organization’s structure and have designated work assignments and specific
tasks directed at accomplishing organizational goals. Informal groups are social
groups.
The forming stage consists of two phases: joining the group and defining the
group’s purpose, structure, and leadership. The storming stage is one of intragroup
conflict over who will control the group and what the group will be doing. The
norming stage is when close relationships and cohesiveness develop as norms are
determined. The performing stage is when group members began to work on the
group’s task. The adjourning stage is when the group prepares to disband.
2. Explain how external conditions and group member resources affect group
performance and satisfaction.
External conditions, such as availability of resources, organizational goals, and

other factors, affect work groups. Group member resources (knowledge, skills,
abilities, personality traits) can influence what members can do and how effectively
they will perform in a group.
3. Discuss how group structure, group processes, and group tasks influence group
performance and satisfaction.
Group roles generally involve getting the work done or keeping group members
happy. Group norms are powerful influences on a person’s performance and dictate
things such as work output levels, absenteeism, and promptness. Pressures to
conform can heavily influence a person’s judgment and attitudes. If carried to
extremes, groupthink can be a problem. Status systems can be a significant
motivator with individual behavioral consequences, especially if incongruence is a
factor. What size group is most effective and efficient depends on the task the group
is supposed to accomplish. Cohesiveness is related to a group’s productivity.
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Group decision making and conflict management are important group processes
that play a role in performance and satisfaction. If accuracy, creativity, and degree of
acceptance are important, a group decision may work best. Relationship conflicts
are almost always dysfunctional. Low levels of process conflicts and low-to-
moderate levels of task conflicts are functional. Effective communication and
controlled conflict are most relevant to group performance when tasks are complex
and interdependent.
4. Compare groups and teams.
Characteristics of work groups include a strong, clearly focused leader; individual

accountability; purpose that’s the same as the broader organizational mission;
individual work product; efficient meetings; effectiveness measured by influence on
others; and discusses, decides, and delegates together. Characteristics of teams
include shared leadership roles; individual and mutual accountability; specific team
purpose; collective work products; meetings with open-ended discussion and active
problem solving; performance measured directly on collective work products; and
discusses, decides, and does real work.
5. Describe the four most common types of teams.
A problem-solving team is one that’s focused on improving work activities or solving

specific problems. A self-managed work team is responsible for a complete work
process or segment and manages itself. A cross-functional team is composed of
individuals from various specialties. A virtual team uses technology to link physically
dispersed members in order to achieve a common goal.
6. List the characteristics of effective teams.

The characteristics of an effective team include clear goals, relevant skills, mutual
trust, unified commitment, good communication, negotiating skills, appropriate
leadership, and internal and external support.
7. What challenges do managers face in managing global teams? How should

those challenges be handled?
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The challenges of managing global teams can be seen in the group member
resources, especially the diverse cultural characteristics; group structure, especially
conformity, status, social loafing, and cohesiveness; group processes, especially
with communication and managing conflict; and the manager’s role in making
it all work.
8. Explain the role of informal (social) networks in managing teams.
Research on social networks has shown that when people need help getting a job
done, they’ll choose a friendly colleague over someone who may be more capable.
Another recent review of team studies showed that teams with high levels of
interpersonal interconnectedness actually attained their goals better and were more
committed to staying together.
9. How do you think scientific management theorists would react to the increased
reliance on teams in organizations? How would behavioral science theorists react?
Scientific management theorists would likely react negatively to the use of teams in
organizations. Scientific management focuses on the “one best way” for an
individual to do his or her job; searching for the “one best way” could inhibit
creativity and ideas for innovation that would likely come through the use of teams.
Behavioral scientists, on the other hand, would be favorable to the concept of
increased reliance on teams and groups. Because teams utilize input from the
diverse background of several individuals and place responsibility on each team
member, behavioral lists would be in favor of this approach.
10. Why might a manager want to stimulate conflict in a group or team? How could
conflict be stimulated?
A manager might want to stimulate conflict in a group or team in order to help that
group or team generate more creative, innovative solutions to a problem or
challenge. Managers want to stimulate conflict to gain the full benefits of its
functional properties without allowing disagreement to become a disruptive force.
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Conflict can be simulated by bringing new members to the group, restructuring the
group, appointing a devil’s advocate, attempting to change the group’s culture, and
using open communication.
Chapter 15 Managers and Communication
Case Application: Gossip Girls
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Question 1: What do you think of this situation? Do you agree with the council’s
decision about the firing and refusal to reinstate the employees?
Answer 1: We think that office gossip should not exceed its limits Yes , the council
decision of firing was correct because the office gossip was move toward the
rumors and getting dangerous for the administrator and for its assistant the gossip
was regarding the affair between the administrator and its assistance. So it was a
good decision by the council for the refusal of reinstates the employees because if
the employees came back due to natural phenomena they should again start the
gossips which again lead to the ramous.
Question 2: In a recent survey, 60 percent of respondents indicated that the biggest

pet peeve they have about their jobs is workplace gossip. Research the topic of
office gossip/office rumors. Is office gossip always harmful? Discuss. Could it ever
be useful to managers?
Answer 2: Office gossip is not always harmful MacDraw says that “If someone
shares gossip with you, it bonds you together,” it create trust between office
colleagues. It is the fact that people automatically think gossip is bad. The people do
not want to hear anything about their self, if the gossip is leaked to the third person
it will create unfavorable atmosphere in the organization which is not good for the
organization.
But sometimes the office gossips can be good for the managers because it is also a
channel of communication the manager are aware about their self what their
employees says about them and about their organization, it can also useful
sometime when employees gossip about the organization for its betterment.
Question 3: In retrospect, what could these four women have done differently?
Answer 3: In retrospect, these four women gossip with each other about their
administrator the one of the woman had used rough language to describe the town
administrator and because all of them had discussed a rumor that he was having an
affair with a female subordinate. All four of the woman acknowledged feeling
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resentment toward the woman. Who worked in a specially created position and was
paid more than two of the employees, despite having less experience and seniority.
Question 4: What implications from this story can you see for managers and
communication?
Answer 4: The implications we can see from this story is that the managers should
not give preference to only one employee so that other employees start gossip for
that employee and also gossip to the employer. We also see that the employees
should not exceed their gossip limits which create the ramous in the organization.
1. Define communication, interpersonal communication, and organizational

communication. Why isn’t effective communication synonymous with agreement?
Communication is the transfer and understanding of meaning. Interpersonal

communication is communication between two or more people. Organizational
communication includes all the patterns, networks, and systems of communication
within an organization. Effective communication is not the same as agreement
because if someone disagrees with us, we assume that the person just didn’t fully
understand our position. In other words, many of us define good communication as
having someone accept our views. But I can clearly understand what you mean and
just not agree with what you say.
2. What are the functions of communication?

The functions of communication include controlling employee behavior, motivating
employees, providing a release for emotional expression of feelings and fulfillment
of social needs, and providing information.
3. Explain the components in the communication process.
Before communication can take place, a purpose, expressed as a message to be

conveyed, must exist. It passes between a source (the sender) and a receiver. The
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message is converted to symbolic form (called encoding) and passed by way of

some medium (channel) to the receiver, who retranslates the sender’s message
(called decoding). The result is the transfer of meaning from one person to another.
The entire process is susceptible to noise—disturbances that interfere with the
transmission, receipt, or feedback of a message.
4. What are the various communication methods managers can use? What criteria
can managers use to evaluate those communication methods?
The communication methods include face-to-face, telephone, group meetings,

formal presentations, memos, traditional mail, fax, employee publications, bulletin
boards, other company publications, audio- and videotapes, hotlines, e-mail,
computer conferencing, voice mail, teleconferences, and videoconferences.
Managers can evaluate the various communication methods according to their
feedback, complexity capacity, breadth potential, confidentiality, encoding ease,
decoding ease, time-space constraint, cost, interpersonal warmth, formality,
scalability, and time of consumption.
5. What are the barriers to effective communication? How can those barriers be
overcome?
The barriers to effective communication include filtering, emotions, information

overload, defensiveness, language, and national culture. Managers can overcome
these barriers by using feedback, simplifying language, listening actively,
constraining emotions, and watching for nonverbal clues.
6. Contrast formal and informal communication.
Formal communication is communication that takes place within prescribed

organizational work arrangements. Informal communication is not defined by the
organization’s structural hierarchy.
7. Explain communication flow, the three common communication networks, and

how managers should handle the grapevine.
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Communication in an organization can flow downward, upward, laterally, and

diagonally.
The three communication networks include the chain, in which communication flows
according to the formal chain of command; the wheel, in which communication flows
between a clearly identifiable and strong leader and others in a work team; and the
all-channel, in which communication flows freely among all members of a work
team. Managers should manage the grapevine as an important information
network. The negative consequences of rumors can be minimized by
communicating openly, fully, and honestly with employees.
8. How does technology affect managerial communication? How does it affect

organizations?
Technology has radically changed the way organizational members communicate. It

improves a manager’s ability to monitor performance; it gives employees more
complete information to make faster decisions; it has provided employees more
opportunities to collaborate and share information; and it has made it possible for
people to be fully accessible, anytime anywhere. IT affects organizations by
influencing the way that organizational members communicate, share information,
and do their work.
9. Discuss the five contemporary communication issues facing managers.
The two main challenges of managing communication in an Internet world are the
legal and security issues and the lack of personal interaction.
Organizations can manage knowledge by making it easy for employees to
communicate and share their knowledge, which can help them learn from each
other ways to do their jobs more effectively and efficiently. One way is through
online information databases and another way is through creating communities of
practice.
Communicating with customers is an important managerial issue since what
communication takes place and how it takes place can significantly affect a
customer’s satisfaction with the service and the likelihood of being a repeat
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customer. It’s important for organizations to get input from their employees. Such
potentially valuable information should not be ignored.
Finally, a company’s communication efforts need to be ethical. Ethical
communication can be encouraged through clear guidelines and through answering
questions that force a communicator to think through the communication choices
made and the consequences of those choices.
10. Which do you think is more important for a manager: speaking accurately or
listening actively? Why?
Students’ reactions may vary; however, they need to make a strong case for their
answer. A strong case can be made for each of the two responses. As students
have learned, barriers can occur at any step in the communication process. The
sender is responsible for sending an accurate message and choosing the most
appropriate channel for the message, while considering the receiver’s
characteristics and environment. Active listening is critical so that the receiver can
interpret the message as intended and send valuable feedback to the sender. In
addition, the open communication that is vital between management and employees
in a learning organization depends upon an atmosphere of trust. Employees must
have confidence that their manager will listen actively to their comments and
concerns.
Chapter 16 Motivating Employees
Case Application 2: Best Practices at Best Buy
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Question 1: Describe the elements of ROWE. What do you think might be the
advantages and draw-backs of this program?
Answer 1: ROWE, Results-Only Work Environment is a process in which the

emphasis is on production and not on how and when the work is done. In essence,
the focus is not on the amount of time spent at work but on the actual work
accomplished. This allows the employees to do as they wish as long as their work
is completed. They can work at any location and any hours that accommodate
them. There are no set schedules; they are compensated by their production. This
process was inspired and developed by two HRM managers, Cali Ressler, and Jody
Thompson, at Best Buy in 2002. The method was designed to motivate employees
and increase productivity. For Best Buy to successfully implement this new
process, the culture of the organization had to change. A culture audit was
conducted at headquarters so that they could find out what the employees thoughts
were in their work environment. Next managers were trained on ROWE and how to
manage their employees during this process. Keeping their employees in control
when given so much freedom was an important part of maintaining productivity in
the organization. Then the managers had to develop a plan of implementation for
their teams and to prevent their new found flexibility from creating a chaotic
workplace. Pagers and email made it possible for the finance and public relations
departments to be accessible and work from home. This process increased
productivity and decreased employee turnover (Coulter & Robbins, 2012). Would
this method work for all business models? No, this process would not be feasible
for more controlled work environments such as healthcare or any service personnel
jobs where there must be employees present at all times. The advantages of this
process would be the freedom that the employees receive. If an individual is ill,
they can work from home with no job time missed. This would also help with
employees that have small children; they can leave the workplace whenever they
want and work from home if needed. This would increase employee satisfaction
and decrease employee turn-over. Teamwork and engagement would increase,
reducing stress levels and overworked employees. It makes the employees feel
more empowered and responsible for their outcomes. It establishes autonomy and
allows the employees to be accountable for the work that they do or do not do.
According to analysis, ROWE increases productivity an average of 20% (Ressler,
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2013). Some of the disadvantages, for managers, may be maintaining control of the
workplace. Many employees may take advantage of their freedom and only do
enough work to get by, while others may be contributing more to the organization.
This would create an unfair work environment and cause some employees to leave.
It would also make it difficult for the managers to initiate discipline due to having the
ability to see their employees pulling their weight. This process is intriguing and
would work in less controlled environments; however, maintaining employee
production may be difficult which out being able to visualize employee production
(Ressler, 2013).
Question 2: Using one or more motivation theories from the chapter, explain why
you think ROWE works.
Answer 2: A Results-Only Work Environment (ROWE) is one in which the emphasis

is on the actual work done. “Most employees are motivated by one of David
McClelland's theories" (Kelly & McGowen, 2012). McClelland's theory that drives a
worker includes the need for achievement need for affiliation and need for power.
According to the textbook, "The need for achievement (nAch) which is the drive to
succeed and excel about a set of standards" (Robbins & Coulter, 2012 pg. 434).
The n-ach theory, or the need for achievement, is the desire to do something bet-ter
or more efficiently than it has been done before. It is particularly relevant in the work
world. The employee would seek situations in which they might gain personal
responsibility for finding solutions to some situation in the workplace. The need for
achievement theory will also make the team member want to receive recognition
and vital feedback. An employee using this motiva-tional theory the individual will
also set smart, attainable goals. This motivational theory would explain ROWE
because it assesses employees by their performance, results or output.
Question 3: What might be the challenges for managers in motivating employees in
a program like this?
Answer 3: Motivation refers to the process by which a manager would energize,

direct, and help an employee sustain a goal (Coulter & Robbins, 2012). As a
manager, it may become difficult to manage employees who you do not frequently
interact. A manager must build a level of trust in employees to ensure tasks are
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completed. This requires a culture change from a managerial perspective as

manager’s need to become creative in how work flow is managed, and employees
are motivated. A manager’s challenge using the ROWE concept would be that the
manager must have frequent interaction with staff to motivate them. It is hard to
motivate employees who you do not interact with frequently. If an employee is self-
motivated and requires less coaching, the ROWE concept can be very successful.
If the employee is not self-sufficient, it is hard to motivate without micro managing
the employee. Micro managing an employee defeats the purpose of the ROWE
concept.
Question 4: Does this sound like something you would be comfortable with? Why or
why not?
Answer 4: The ROWE concept is something that I would be comfortable with and be
able to implement in my organization. In ROWE, this is an excellent chance that
mangers can focus on issues that the organizations are facing instead of the
workflow of each employee. With implanting ROWE into your organizations, you will
have to be a person in leadership that has great confidence in yourself and your
ability of the staff. With the ROWE concepts, you review each per-son positions
and evaluate which individuals have valued employees to the company and
individuals that re lacking in their skill sets. ROWE could be looked at as a concept
that “calls each person out “it is a way to improve the organization. As a CEO, my
whole objective is to have a successful organization with outstanding employees to
get the job done. When ROWE is used in the organization, employees are the
unnamed CEO of the company, this takes the workload off the appointed to CEO.
We would be comfortable with the concept because we have individuals within our
organization that have the proper training tools to be successful with the ROWE
concept. We would designate individuals to be responsible for a certain task of the
job and know how to do the job with the ROWE concept in mind.
Everyone will never work the same as we all have different styles of achieving our
job responsibilities. The ROWE concept is valuable in having satisfied employees
come to work, believe in their abilities and not have the direct oversee of a manger.
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Question 5: What's your interpretation of the statement that "Work isn't a place you
go--it's something you do"? Do you agree? Why or why not?
Answer 5: This statement could be entirely correct or agreeable. However, it would

have some stipulation to make agreeable. If the individual does not enjoy or is not
motivated to do the job, then the statement is true. Employees have to feel like work
is not work. Of course, work is a ne-cessity and sometimes rewarding under the
right circumstances. Managers have to make sure that the employees of the
organization are happy in their role and at the company as well. A happy employee
will be a team player and have a higher production rate in an organization that is not
just a place to go or do.
1. What is motivation? Explain the three key elements of motivation.
Motivation is the process by which a person’s efforts are energized, directed, and
sustained toward attaining a goal. The energy element is a measure of intensity,
drive, or vigor. The high level of effort needs to be directed in ways that help the
organization achieve its goals. Employees must persist in putting forth effort to
achieve those goals.
2. Describe each of the four early theories of motivation.
In Maslow’s hierarchy, individuals move up the hierarchy of five needs

(physiological, safety, social, esteem, and self-actualization) as needs are
substantially satisfied. A need that’s substantially satisfied no longer motivates. A
Theory X manager believes that people don’t like to work or won’t seek out
responsibility so they have to be threatened and coerced to work. A Theory Y
manager assumes that people like to work and seek out responsibility, so they will
exercise self-motivation and self-direction. Herzberg’s theory proposed that intrinsic
factors associated with job satisfaction were what motivated people. Extrinsic
factors associated with job dissatisfaction simply kept people from being
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dissatisfied. Three-needs theory proposed three acquired needs that are major
motives in work: need for achievement, need for affiliation, and need for power.
3. How do goal-setting, reinforcement, and equity theories explain employee

motivation?
Goal-setting theory says that specific goals increase performance, and difficult
goals, when accepted, result in higher performance than do easy goals. Important
points in goal setting theory include intention to work toward a goal as a major
source of job motivation; specific hard goals that produce higher levels of output
than generalized goals; participation in setting goals as preferable to assigning
goals, but not always; feedback that guides and motivates behavior, especially self-
generated feedback; and contingencies that affect goal setting—goal commitment,
self-efficacy, and national culture. Reinforcement theory says that behavior is a
function of its consequences. To motivate, use positive reinforcers to reinforce
desirable behaviors. Ignore undesirable behavior rather than punishing it.
Equity theory focuses on how employees compare their inputs–outcomes ratios to
relevant others’ ratios. A perception of inequity will cause an employee to do
something about it. Procedural justice has a greater influence on employee
satisfaction than does distributive justice.
4. What are the different job design approaches to motivation?
Job enlargement involves horizontally expanding job scope by adding more tasks or
increasing how many times the tasks are done. Job enrichment vertically expands
job depth by giving employees more control over their work. The job characteristics
model says five core job dimensions (skill variety, task identity, task significance,
autonomy, and feedback) are used to design motivating jobs. Another job design
approach proposed looking at relational aspects and proactive aspects of jobs.
5. Explain the three key linkages in expectancy theory and their role in motivation.
Expectancy theory says that an individual tends to act in a certain way based on the
expectation that the act will be followed by a desired outcome. Expectancy is the
effort–performance linkage (how much effort do I need to exert to achieve a certain
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level of performance); instrumentality is the performance–reward linkage (achieving

at a certain level of performance will get me a specific reward); and valence is the
attractiveness of the reward (Is it the reward that I want?).
6. What economic and cross-cultural challenges do managers face when motivating

employees?
During tough economic conditions, managers must look for creative ways to keep
employees’ efforts energized, directed, and sustained toward achieving goals. Most
motivational theories were developed in the United States and have a North
American bias. Some theories (Maslow’s need hierarchy, achievement need, and
equity theory) don’t work well for other cultures. However, the desire for interesting
work seems important to all workers and Herzberg’s motivator (intrinsic) factors may
be universal.
7. What challenges do managers face in motivating today’s workforce?
Managers face challenges in motivating unique groups of workers. A diverse

workforce is looking for flexibility. Professionals want job challenge and support, and
are motivated by the work itself. Contingent workers want the opportunity to become
permanent or to receive skills training. Recognition programs and sincere
appreciation for work done can be used to motivate low-skilled, minimum-wage
workers.
8. Describe open book management, employee recognition, and pay-for-

performance programs.
Open-book management is when financial statements (the books) are shared with
employees who have been taught what they mean. Employee recognition programs
consist of personal attention, approval, and appreciation for a job well done. Pay-
for-performance programs are variable compensation plans that pay employees on
the basis of some performance measure.
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9. Most of us have to work for a living, and a job is a central part of our lives. So
why do managers have to worry so much about employee motivation issues?
Even though most of us have to work for a living in order to support ourselves and
those who are dependent upon us, managers still have to worry about employee
motivation because some employees are not always willing to put forth the effort to
do their job to the best of their ability.
Even when employees are willing to put forth their best effort, managers must take
steps to ensure that their motivation will be sustained over time, in spite of personal
or professional setbacks and factors in the external environment over which they
and their employees may have no control. Managers must have knowledge of
motivational theories and understand the individual differences and perceptions of
their employees in order to choose rewards that will be effective in motivating them
to work together to reach organizational goals.
10. Can an individual be too motivated? Discuss.
This question can serve as an excellent springboard for small group discussion.
Students may express strong opinions in their answers to this question, depending
upon their employment experiences and the types of managers and employees with
whom they have already worked. Their answers to this question will likely introduce
ethical considerations in relation to motivation and the willingness of some
individuals to lose sight of ethical standards in pursuit of a goal.
Chapter 17 Managers as Leaders
Case Application 1: Growing Leaders

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Question1: What do you think about Buckley’s statement that leaders and managers
differ? Do you agree? Why or why not?
Answer 1: I completely concur with Buckley's announcement. Leaders and

managers are distinctive on the grounds that leaders are more about having an
impact and being a motivation to other individuals while chiefs' employment is more
to control the circumstance or following so as to undertake a procedure or certain
system. The very meaning of every word outlines this point. Leader is characterized
as somebody who can impact others. The meaning of a chief is a person in an
association who coordinates the exercises of others. Along these lines, pioneers are
more centered on the long haul advancement of an association though supervisors
are more centered on the everyday operations of an association. As Buckley
expressed, "A leader is as much about motivation as whatever else.
A manager is more about procedure." Anyone in an association can have authority
qualities and not be in an administrative sort position. I likewise surmise that it is
entirely workable for a supervisor not to be a leader. Leadership issues that I found
for this situation, is that it is not all that simple for a leader to "pop out of the blue”
like George Buckley said for the situation states. It is elusive some person reliable
and one who utilizes their head to make sense of issues and new thoughts as
opposed to the Internet and outside even he is moved on from a surely understood
school.
A hypothesis Buckley has faith in building an awesome pioneer, is for the individual
to have the capacity to take something from the business that has been produced
Models: Buckley has his own particular pioneer boat style he sees that the best way
to be successful is to have individuals working for him who are better, having so as
to have self-assurance and manufactured appreciation you assembled trust I
reason that leaders take a shot at their practices. They gain from their own
oversights and from great good examples. They rehearse and improve a leader
needs individuals to tail them in light of the trust and regard they have earned – not
on account of they are advised to.
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Question 2: What leadership models/theories/issues do you see in this case? List

and describe.
Answer 2: For this situation, the model of transformational leaders is utilized.

Transformational leaders animate and rouse devotees to accomplish
unprecedented results. This is seen in there six traits, particularly inspire and stir
others and make progress toward magnificence. It is likewise found in their
accomplishments in administration advancement including being among the main
20 organizations for initiative as indicated by Hay Consulting Group and Fortune
magazine. The attribute hypotheses of initiative are found for the situation.
The six initiative traits that M3 recognized as key for the organization to wind up
talented at executing methodology and being responsible. These six properties line
up with a few of the recorded characteristics of a leader in this hypothesis.
Leadership hypotheses have been the wellspring of various studies. Actually and
additionally by and by, numerous have attempted to characterize what permits
legitimate pioneers to stand separated from the mass! Subsequently, there the
same number of hypotheses on initiative as there are logicians, scientists and
educators that have considered and at last distributed their authority hypothesis.
An extraordinary article to peruse before jumping into the speculations is The
Philosophical Foundations of Leadership. Speculations are ordinarily classified by
which angle is accepted to characterize the pioneer the most. The most far reaching
one's are: “Great Man Theory, Trait Theory, Behavioral Theories, Contingency
Theories, Transactional Theories and Transformational Theories”. The Great Man
hypothesis expects that the characteristics of initiative are inborn. That essentially
implies that incredible pioneers are conceived. On hero, “Hero-Worship”, and the
“Heroic” in History they are not completed.
This hypothesis sees awesome leaders as the individuals who are predetermined
by conception to wind up a pioneer. Moreover, the conviction was that extraordinary
pioneers will rise when gone up against with the suitable circumstance. The “trait
theory of leadership” trusts that individuals are either conceived or are finished with
specific virtues that will create them exceed expectations in administration parts.
That is, sure qualities, for example, knowledge, awareness of other's expectations,
inventiveness and different qualities place anybody in the footwear of a decent
leader.
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Question 3: Take each of the six leadership attributes that the company feels is
important. Explain what you think each one involves. Then discuss how those
attributes might be developed and measured.
Answer 3: There are several virtues that appear to emerge as being extra vital than
the other ones. The uplifting report is that every one of these virtues can be
educated, and they must be well-read by preparation and reiteration.
1. Vision: The mainly significant Single value of Leadership, Pioneers have vision.
They can see into what's to come. They have a reasonable, brisk consideration of
where they are departing and what they attempts to finish. This quality isolates them
from administrators. To have a unique vision converts the individual into a unique
sort of individual. These personalities of vision modify a “value-based supervisor”
into a ''transformational leader.'' While a chief takes concern of production, a
genuine pioneer takes advantage of the opinion of his kin.
2. Bravery: The Second Quality That Leaders Have in Common the personality of
bravery involves that you are keen to go for broke in the achievement of your goals
with no certification of achievement. This is the reason mettle is the mainly personal
superficial nature of an incredible pioneer.
3. Uprightness: The Most Respected and Admired Quality of Superior People and
Leaders In each vital organizing assembly that I have directed for expansive and
slight associations, the initial regard that each and every one are assembled
manager concur ahead for their association is honesty. They all concur on the
implication of complete authenticity in all that they do, in cooperation within and
remotely. The centre of honesty is honesty. Honesty requires that you generally
come clean, to all individuals, in each circumstance. Honesty is the establishment
nature of the faith that is essential for the accomplishment of any production.
4. Lowliness: privileged have the safety and Self-Confidence to identify the
importance of others the most excellent pioneers are the individuals who are solid
and definitive additionally humble. Lowliness doesn't imply that you're powerless or
uncertain of yourself. It implies that you have the self-assurance and mindfulness to
perceive the estimation of others without feeling debilitated. It involves that you are
keen to concede you could not be right, that you remember you might not have
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every single of the answers. Furthermore, it implies that you acknowledge a job well
done.
5. Prescience: Leaders have the capacity to look into the prospect and anticipate
that might happen superb pioneers are great vital masterminds. They can look
ahead, to envision with some exactness where the business and the business
sectors are going. Pioneers can foresee patterns, well ahead of time of their rivals.
They consistently ask, on the basis of what is going on nowadays, where is the
business sector going? Where is it liable to be in three months, six months, one
year, and two years?''
6. Centre: The capability to center energies and capital in the mainly significant
areas pioneers dependably concentrates on the requirements of the association
and the circumstance. Pioneers concentrate on the qualities of the association, on
the things that the organization bests in fulfilling requesting clients in a focused
commercial centre.
Question 4: What did this case teach you about leadership?
Answer 4: The nature of leadership is a critical component in an association's

prosperity, since leader’s impact representatives to cooperate toward the
satisfaction of an organization's main goal and the accomplishment of its objectives.
While administrators are designated and have true blue force inside of the
association, a pioneer is somebody who can impact others and who has
administrative power. Initiative is the procedure of affecting a gathering to
accomplish objectives. The students may learn the styles of the leadership by this
case. The role of leaders and managers would be learned by students in this case
as a leader is as much about motivation as whatever else. A manager is more about
procedure.
Transformational initiative tends to concentrate on the way of life and learning
encounters of individuals. Moreover, the objective of "changing the qualities and
needs of adherents and inspiring them to perform past their desires" is an objective
of all pioneers. It gives genuine illustrations to bolster what I am instructing in the
classroom. By utilizing these cases the material is enlivened for the understudy and
gives them an association with partner their learning with and perform better on
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appraisals. In value-based leadership it concentrates on the "trading of prizes for

consistence".
The showing goals of this case are: (1) to help understudies in fortifying their
authority and administration aptitudes; (2) to upgrade understudies' capacities to
investigate the choices what's more, activities of directors, to decide their vital and
strategic effect, and to offer proposals for future choices and activities; (3) to clarify
the effect of authoritative society on representative conduct and execution results;
(4) to exhibit the challenges supervisors experience amid endeavors to change
associations; (5) to address the requirement for strengthening and responsibility for
results in the administration of associations; and (6) to address the requirement for
flat and vertical arrangement of top administration groups.
This study was propelled by the reason that no country becomes more distant than
the nature of its instructive pioneers. The motivation behind this hypothetical verbal
confrontation is to inspect the more extensive setting of initiative and its adequacy
towards enhancing school administration. This scholarly assessment inspects late
hypothetical advancements in the investigation of instructive administration in
school administration. It starts with a brief diagram of the importance and idea of
initiative as far as exploration, hypothesis, and practice. This is trailed by an
examination of the hypotheses of initiative, standards and styles of authority. Every
segment closes with a recognizable proof of contemporary issues and conceivable
method for enhancement.
This article reasons that achievement is sure if the use of the authority styles,
standards and strategies is appropriately and completely connected in school
administration in light of the fact that quality instructive initiative custom offers
extraordinary chance to further refine instructive administration and administration
arrangements and practices by tolerating and using the fundamental standards and
styles of instructive leadership. Leaders aren't given the decision in the middle of
dandelions and roses. It may be dandelions and chickweed. They are compelled to
settle on decisions with too little time and too little data. It requires valor and a solid
stomach. I may be compelled to settle on a choice in five seconds, which will then
be concentrated on for a considerable length of time by a group of 40 legal
advisors. The employment that pioneers have is troublesome, and there are
progressively few individuals equipped for doing it.
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Case Application 2: Master and Commander
Question 1: What do you think of this description of Captain Holly Graf’s leader
style? Do you think that Captain Graf could even be called a leader? Discuss.
Answer 1: This case epitomizes the difference between a manager and a leader.
Students should question whether legitimate power does indeed make a leader. In
other words, does title alone ensure that subordinates will view the person “in
charge” as a leader.
Question 2: What kinds of power do you think Graf used as a ship commander?
Explain your choices.
Answer 2: Though the case may not present a daily log of Graf’s actions, from what
is illustrated, students should be able to point to legitimate power as the obvious
source of power. But, they may also identify coercive power in the way Graf
behaved toward crews.
Question 3: Not surprisingly, this whole scenario rocked the Navy to its core since it
reflected on the way the Navy chooses, promotes, and then monitors its handpicked
leaders. What changes, if any, do you think need to take place in its leadership
training and development?
Answer 3: Student responses will vary, but encourage them to think about the
hierarchy involved. If the students were Graf’s superior officer, how would that
individual view the training process? Or, if one of Graf’s crew members, what would
that person view as important in terms of training and development? Students
might also consider the differences in leadership styles when one is operating in a
time of war versus managing say, a retail store or a restaurant. Is an autocratic
style of leadership necessary on a Navy ship? In every situation?
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Question 4: Some critics of Graf’s treatment have said that institutional sexism
played a role in her removal. Do you think that could be possible? Discuss. Would
that “excuse” the way she led? Explain.
Answer 4: As students consider this question, have them think about the pioneering
steps Graf took in her career. Being the first woman to command a destroyer is a
significant accomplishment in the U.S. Navy. Have students explore the
contingency theory of leadership. What if a leader chooses the wrong style of
leadership in a given situation? Is it possible that Graf was varying her leadership
style, but in an incorrect fashion – such as using an autocratic style when she
should have been more democratic or even laissez-faire? And, is a military
environment completely different than the private, business sector?
1. Define leader and leadership and explain why managers should be leaders.
Students should be able to provide the definitions in the text – that a leader is
someone who influences others and that leadership is the process of influencing
others to achieve a goal. However, encourage students to think about their own
definitions of who a leader is and how they personally define leadership.
2. What does each of the four behavioral leadership theories say about leadership?
The University of Iowa Studies explored three styles of leadership: autocratic,

democratic, and laissez-faire. Initial results found that a democratic style leader
was more effective. However, later studies had mixed results. When group
member satisfaction was examined, it was found that a democratic style was more
effective than an autocratic one. The Ohio State Studies found that a leader who
was high in both initiating structure and consideration sometimes achieved high
group task performance and high group member satisfaction, but not always. The
University of Michigan Studies presented two dimensions of leadership: employee
orientation and production orientation. Researchers concluded that leaders who
were employee oriented were able to get high group productivity and high group
P a g e | 79
member satisfaction. Finally, the Managerial Grid attempted to categorize various

leadership behaviors. Ultimately, the grid offered no answers to the question of
what made a manager an effective leader; it only provided a framework for
conceptualizing leadership style.
3. Explain Fiedler’s contingency model of leadership.
Fiedler’s model proposed that group performance was based upon the leader’s
style and the amount of control in a given situation. After a leader’s style is
assessed through the least-preferred coworker questionnaire, three contingency
dimensions are examined: leader-member relations, task structure, and position
power. Ultimately, the model suggests that effectiveness is achieved when a leader
is matched to a particular situation or if the situation is changed.
4. How do situational leadership theory and path-goal theory each explain

leadership?
Situational leadership theory focuses upon the readiness of followers. It treats the
leader and follower relationship like that of a parent and child. As the child
(follower) matures, the parent (leader) relinquishes more control. Path-goal theory
puts the focus on the leader and his or her ability to guide followers and remove
obstacles.
5. What is leader-member exchange theory and what does it say about leadership?
Leader-member exchange theory states that leaders establish “in-groups” and “out-
groups.” Those in the in-group will have higher performance, lower turnover, and
greater job satisfaction. This is due to the leader and follower investing in the
relationship.
6. Differentiate between transactional and transformational leaders and between

charismatic and visionary leaders.
P a g e | 80
A transactional leader guides and influences followers by exchanging rewards for

the followers’ productivity. A transformational leader stimulates and inspires
followers to achieve extraordinary outcomes. A charismatic leader is an
enthusiastic, self-confident leader whose personality and actions influence people to
behave in certain ways. A visionary leader is one who articulates an appropriate
vision for the future.
7. What are the five sources of a leader’s power?
The five sources of a leader’s power are legitimate, coercive, reward, expert, and
referent.
8. What issues do today’s leaders face?
Today’s leaders face the issues of managing power, developing trust, empowering
employees, leading across cultures, and becoming an effective leader.
9. Do you think that most managers in real life use a contingency approach to
increase their leadership effectiveness? Explain.
As managers participate in mentoring, development training, networking, and on-

the-job experience, they should become more comfortable and adept in their use of
a contingency approach to increase their leadership effectiveness. Organizations
that offer leadership training often include contingency approaches. Ask your
students to give examples to illustrate how their managers in the workplace use a
contingency approach for successful leadership.
10. Do the followers make a difference in whether a leader is effective? Discuss.
It is the leader’s ability to get the follower to carry out the goals of the organization
that ultimately determines a leader’s success. However, if the followers are not
skilled or do not have the appropriate knowledge to accomplish the task then the
effectiveness of the leader suffers. You may want to use the example of a coach
P a g e | 81
who has lost key players due to unexpected injuries. If this player is taken out of the
game, then the team may lose the game regardless of the quality of the coaching.
Chapter 18 Introduction to Controlling
Answers to Review and Discussion Questions:
1. What is control and how is control related to planning?
Controlling is the process of monitoring, comparing, and correcting work

performance. As the final step in the management process, controlling provides the
link back to planning. If managers didn’t control, they’d have no way of knowing
whether goals were being met.
2. What are the three steps in the control process? Describe in detail.
The three steps in the control process are measuring, comparing, and taking action.
Measuring involves deciding how to measure actual performance and what to
measure. Comparing involves looking at the variation between actual performance
and the standard (goal). Deviations outside an acceptable range of variation need
attention.
3. What is organizational performance?

P a g e | 82
Organizational performance is the accumulated results of all the organization’s work

activities. Three frequently used organizational performance measures include (1)
productivity, which is the output of goods or services produced divided by the inputs
needed to generate that output; (2) effectiveness, which is a measure of how
appropriate organizational goals are and how well those goals are being met; and
(3) industry and company rankings compiled by various business publications.
4. Contrast feedforward, concurrent, and feedback controls.
Feedforward controls take place before a work activity is done. Concurrent controls
take place while a work activity is being done. Feedback controls take place after a
work activity is done.
5. Discuss the various types of tools used to monitor and measure organizational
performance.
Financial controls that managers can use include financial ratios (liquidity, leverage,
activity, and profitability) and budgets. One information control managers can use is
an MIS, which provides managers with needed information on a regular basis.
Others include comprehensive and secure controls such as data encryption, system
firewalls, data backups, and so forth that protect the organization’s information.
Balanced scorecards provide a way to evaluate an organization’s performance in
four different areas rather than just from the financial perspective. Benchmarking
provides control by finding the best practices among competitors or noncompetitors
and from inside the organization itself.
6. What workplace concerns do managers have to deal with? How might those
concerns be controlled?
Workplace concerns include workplace privacy, employee theft, and workplace

violence. For each of these issues, managers need to have policies in place to
control inappropriate actions and ensure that work is getting done efficiently and
effectively.
P a g e | 83
7. Why is control important to customer interactions?
Control is important to customer interactions because employee service productivity

and service quality influences customer perceptions of service value. Organizations
want long-term and mutually beneficial relationships among their employees and
customers.
8. In Chapter 6 we discussed the white-water rapids view of change. Do you think
it’s possible to establish and maintain effective standards and controls in this type of
environment? Discuss.
An organizational environment that is characterized by the white-water rapids view

of change must establish and maintain effective standards and controls in order to
provide the stability necessary for effective production of goods and services in the
midst of continuous hyper-change. The white-water rapids atmosphere requires the
establishment and implementation of a control system that is flexible and clearly
focused on the performance measures of significant importance to the success of
the company.
9. What are some work activities in which the acceptable range of variation might be
higher than average? What about lower than average? (Hint: Think in terms of the
output from the work activities, who it might affect, and how it might affect them.)
For some jobs, measuring employee performance is as simple as looking at total

sales or the number of units produced in a day. However, there are many jobs
where the uncertainty of outcomes and the unstructured nature of the work create
wide variations in performance. Students might want to think about jobs such as a
research scientist, a firefighter, or a police detective. In these jobs, it is difficult to
predict and measure outcomes due to the variability of what they do and how their
jobs affect others.
10. “Every individual employee in an organization plays a role in controlling work

activities.” Do you agree with this statement, or do you think control is something
that only managers are responsible for? Explain.
P a g e | 84
Every individual employee plays a role in controlling the quality of goods and
services produced by their company, particularly in organizations where employees
have been empowered by management. Even in organizations where employees
have not been extensively empowered, employees play a role in measuring,
comparing, and correcting performance. In any case, managers remain responsible
for establishing and maintaining standards, approaches, and guidelines for
measuring, comparing, and correcting the work of the organization.

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What types of issues might top managers face?

What types of issues might top managers face?

What are the most important management functions?

What are the most important management functions?

ITM

Chap 1: Management and Organizations

i. Defining Leadership Style. Though leadership may be hard to

b. Egoistic Approach. At some point they may have experience of being

iii. Bad hiring decisions

c. Motivational issue. No organization, be it formal or casual, will get far if

d. Cultivating Leadership Approach. Being at the top It is a known fact

e. Communication. At some point of time they

a. Planning. This function involves mapping out exactly how to

1. Challenges. Mangers might have to deal with following challenges:

a. Achieving Goal. There are goals associated with objectives, and if

2. Importance of innovation. Innovation is a critical factor in a growth of a

 Shaping consumer tastes to build a stronger market for sustainable products.

ANSWERS TO REVIEW AND DISCUSSION QUESTIONS

3. “The manager’s most basic responsibility is to focus people toward performance

This statement means that a manager’s job or responsibility is to coordinate and/or

5. Is business management a profession? Why or why not? Do some external

According to the Occupational Outlook Handbook published by the Bureau of Labor

6. Is there one best “style” of management? Why or why not?

work arrangements, employee work teams, open communication systems, and

8. In today’s environment, which is more important to organizations—efficiency or

Both are integral to effective management. Management refers to the process of

10. “Management is undoubtedly one of humankind’s most important inventions.”

Chap 2: Understanding Management’s Context:

Case Application: Out of Control

Summary in relation to chapter:

Answer 2: There could be several reasons as to why Toyota’s organizational culture

Answers to Review and Discussion Questions

1. Describe the two perspectives on how much impact managers have on an

In section 1 of chapter 2, the omnipotent and symbolic views of management are

2. Why is it important for managers to understand the external environment

continual environmental changes, this organization would have a culture that

Organizations depend on their environment and their stakeholders as a source of

7. Can culture be a liability to an organization? Explain.

In some cases, organizational culture could be a liability. In the global environment,

8. Discuss the impact of a strong culture on organizations and managers.

At one time, researchers supported a direct connection between the strength of an

9. Using Exhibit 2-8, explain how a culture is formed and maintained.

Culture is established and maintained through the transmission and adoption of

10. Explain why workplace spirituality seems to be an important concern.

Chap 5: Managing Social Responsibility and Ethics

Answers to Review and Discussion Questions

1. Differentiate between social obligation, social responsiveness, and social

3. What is green management and how can organizations go green?

4. What factors influence whether a person behaves ethically or unethically?

5. Do you think values-based management is just a “do-gooder” ploy? Explain your

If viewed as an actual approach to managing and not just a series of guidelines,

6. Discuss specific ways managers can encourage ethical behavior.

9. Describe the characteristics and behaviors of someone you consider to be an

Chap 7: Managers as Decision Makers

Case Application: The Curtain Falls

Question 1: Would you characterize television-programming decisions as structured

Answer 1: We would characterize television-programming decisions as both

Answers to Review and Discussion Questions

Decisions are made throughout the performance of all four functions of