Management Fundamentals: Concepts, Applications, and Skill Development 7th Edition Solution Manual
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Lussier, Management Fundamentals, 7e
.
Answers to Questions in the Text
Chapter 1: Management and Its History
WORK APPLICATION SAMPLE ANSWERS
Most of the answers are actual student answers or based on student answers. You may give these
answers as part of your lecture before, after, or in place of getting student answers.
1–1. Describe the specific resources used by a present or past boss. Give the manager’s job title and
department.
My boss was the branch manager at Merchants Bank. The primary resource she used was the
tellers (human resources) to get the job done. When the manager was filling in for tellers at lunch
or on break, she and the other tellers conducted banking transactions for savings and checking
accounts on the computer terminal (physical resources), which was connected to the mainframe
computer at the home office. The computer was the main information resource on account
activities. We were handling financial resources all day long.
1–2. Identify a specific manager, preferably one who is or was your boss, and explain what makes him
or her successful or unsuccessful. Give examples.
My boss owns Bill’s Homemade Ice Cream. Bill’s is only open in the summer. Bill, who is around age
50, is successful because he only checks in a couple of times a day. The rest of the day he is free to
go where he wants to and do whatever he wants to do. The reason for his success is that he hires
good college students to work and trains them well so that he does not need to be around to
supervise them.
1–3. Select a manager, preferably one who is or was your boss, and state the specific management
skills he or she uses on the job.
My boss, Jeff, is the manager at Jiffy Lube. Jeff needs technical skills to lube the cars because part
of his time is spent doing it, and he also has to train the workers how to lube the cars. Jeff needs
interpersonal skills in order to motivate his employees to come to work and to do a good job. Jeff
uses his decision-making skills to determine how many people to schedule, when to schedule them,
when to order more supplies, and so on.
1–4. Identify a specific manager, preferably one who is or was your boss, and give examples of how
that person performs each of the four management functions.
My boss, Sonia, owns her own beauty salon. Sonia has to plan the work schedules for 15
employees. She has to assign her customers to specific hairdressers, pedicurists, and/or
manicurists. When people have multiple services, coordination is important so that customers
don’t have to wait around for the next service. Sonia does the staffing by hiring and training all the
employees. Sonia leads employees to get them to do a good job. She continually reminds all of us
how important customer satisfaction is. It works because most of our customers always come back
to us, and new customers tend to become regulars, too. Sonia spends a lot of her time talking to
.
Answers to Questions in the Text
Chapter 1: Management and Its History
WORK APPLICATION SAMPLE ANSWERS
Most of the answers are actual student answers or based on student answers. You may give these
answers as part of your lecture before, after, or in place of getting student answers.
1–1. Describe the specific resources used by a present or past boss. Give the manager’s job title and
department.
My boss was the branch manager at Merchants Bank. The primary resource she used was the
tellers (human resources) to get the job done. When the manager was filling in for tellers at lunch
or on break, she and the other tellers conducted banking transactions for savings and checking
accounts on the computer terminal (physical resources), which was connected to the mainframe
computer at the home office. The computer was the main information resource on account
activities. We were handling financial resources all day long.
1–2. Identify a specific manager, preferably one who is or was your boss, and explain what makes him
or her successful or unsuccessful. Give examples.
My boss owns Bill’s Homemade Ice Cream. Bill’s is only open in the summer. Bill, who is around age
50, is successful because he only checks in a couple of times a day. The rest of the day he is free to
go where he wants to and do whatever he wants to do. The reason for his success is that he hires
good college students to work and trains them well so that he does not need to be around to
supervise them.
1–3. Select a manager, preferably one who is or was your boss, and state the specific management
skills he or she uses on the job.
My boss, Jeff, is the manager at Jiffy Lube. Jeff needs technical skills to lube the cars because part
of his time is spent doing it, and he also has to train the workers how to lube the cars. Jeff needs
interpersonal skills in order to motivate his employees to come to work and to do a good job. Jeff
uses his decision-making skills to determine how many people to schedule, when to schedule them,
when to order more supplies, and so on.
1–4. Identify a specific manager, preferably one who is or was your boss, and give examples of how
that person performs each of the four management functions.
My boss, Sonia, owns her own beauty salon. Sonia has to plan the work schedules for 15
employees. She has to assign her customers to specific hairdressers, pedicurists, and/or
manicurists. When people have multiple services, coordination is important so that customers
don’t have to wait around for the next service. Sonia does the staffing by hiring and training all the
employees. Sonia leads employees to get them to do a good job. She continually reminds all of us
how important customer satisfaction is. It works because most of our customers always come back
to us, and new customers tend to become regulars, too. Sonia spends a lot of her time talking to
Lussier, Management Fundamentals, 7e
.
Answers to Questions in the Text
Chapter 1: Management and Its History
WORK APPLICATION SAMPLE ANSWERS
Most of the answers are actual student answers or based on student answers. You may give these
answers as part of your lecture before, after, or in place of getting student answers.
1–1. Describe the specific resources used by a present or past boss. Give the manager’s job title and
department.
My boss was the branch manager at Merchants Bank. The primary resource she used was the
tellers (human resources) to get the job done. When the manager was filling in for tellers at lunch
or on break, she and the other tellers conducted banking transactions for savings and checking
accounts on the computer terminal (physical resources), which was connected to the mainframe
computer at the home office. The computer was the main information resource on account
activities. We were handling financial resources all day long.
1–2. Identify a specific manager, preferably one who is or was your boss, and explain what makes him
or her successful or unsuccessful. Give examples.
My boss owns Bill’s Homemade Ice Cream. Bill’s is only open in the summer. Bill, who is around age
50, is successful because he only checks in a couple of times a day. The rest of the day he is free to
go where he wants to and do whatever he wants to do. The reason for his success is that he hires
good college students to work and trains them well so that he does not need to be around to
supervise them.
1–3. Select a manager, preferably one who is or was your boss, and state the specific management
skills he or she uses on the job.
My boss, Jeff, is the manager at Jiffy Lube. Jeff needs technical skills to lube the cars because part
of his time is spent doing it, and he also has to train the workers how to lube the cars. Jeff needs
interpersonal skills in order to motivate his employees to come to work and to do a good job. Jeff
uses his decision-making skills to determine how many people to schedule, when to schedule them,
when to order more supplies, and so on.
1–4. Identify a specific manager, preferably one who is or was your boss, and give examples of how
that person performs each of the four management functions.
My boss, Sonia, owns her own beauty salon. Sonia has to plan the work schedules for 15
employees. She has to assign her customers to specific hairdressers, pedicurists, and/or
manicurists. When people have multiple services, coordination is important so that customers
don’t have to wait around for the next service. Sonia does the staffing by hiring and training all the
employees. Sonia leads employees to get them to do a good job. She continually reminds all of us
how important customer satisfaction is. It works because most of our customers always come back
to us, and new customers tend to become regulars, too. Sonia spends a lot of her time talking to
.
Answers to Questions in the Text
Chapter 1: Management and Its History
WORK APPLICATION SAMPLE ANSWERS
Most of the answers are actual student answers or based on student answers. You may give these
answers as part of your lecture before, after, or in place of getting student answers.
1–1. Describe the specific resources used by a present or past boss. Give the manager’s job title and
department.
My boss was the branch manager at Merchants Bank. The primary resource she used was the
tellers (human resources) to get the job done. When the manager was filling in for tellers at lunch
or on break, she and the other tellers conducted banking transactions for savings and checking
accounts on the computer terminal (physical resources), which was connected to the mainframe
computer at the home office. The computer was the main information resource on account
activities. We were handling financial resources all day long.
1–2. Identify a specific manager, preferably one who is or was your boss, and explain what makes him
or her successful or unsuccessful. Give examples.
My boss owns Bill’s Homemade Ice Cream. Bill’s is only open in the summer. Bill, who is around age
50, is successful because he only checks in a couple of times a day. The rest of the day he is free to
go where he wants to and do whatever he wants to do. The reason for his success is that he hires
good college students to work and trains them well so that he does not need to be around to
supervise them.
1–3. Select a manager, preferably one who is or was your boss, and state the specific management
skills he or she uses on the job.
My boss, Jeff, is the manager at Jiffy Lube. Jeff needs technical skills to lube the cars because part
of his time is spent doing it, and he also has to train the workers how to lube the cars. Jeff needs
interpersonal skills in order to motivate his employees to come to work and to do a good job. Jeff
uses his decision-making skills to determine how many people to schedule, when to schedule them,
when to order more supplies, and so on.
1–4. Identify a specific manager, preferably one who is or was your boss, and give examples of how
that person performs each of the four management functions.
My boss, Sonia, owns her own beauty salon. Sonia has to plan the work schedules for 15
employees. She has to assign her customers to specific hairdressers, pedicurists, and/or
manicurists. When people have multiple services, coordination is important so that customers
don’t have to wait around for the next service. Sonia does the staffing by hiring and training all the
employees. Sonia leads employees to get them to do a good job. She continually reminds all of us
how important customer satisfaction is. It works because most of our customers always come back
to us, and new customers tend to become regulars, too. Sonia spends a lot of her time talking to
Lussier, Management Fundamentals, 7e
.
the customers and making sure they are happy with their haircut or nails; and if they are not, she
has the employee try to fix the problem. Once in a while she will give a customer the next visit free
so she doesn’t lose that person’s business.
1–5. Identify a specific manager, preferably one who is or was your boss, and give examples of how
that person performs in each of the three management role categories. Be sure to identify at least one
of the three or four roles in each category.
I worked this past summer primarily catching boxes as they came off the conveyer belt. My boss,
John, spent most of the time playing the interpersonal role of leader because the job was pretty
boring, and he tried to help us have a good time by joking around and gaining satisfaction from the
people we work with. John spent most of his time in the informational role as the monitor. When
the machines were acting up, he would tinker with them; or when he couldn’t fix them, he’d play
the disseminator role to get maintenance to come fix the machines. When we have a machine not
working, it’s a crisis, and John plays the decisional role of disturbance handler to fix them.
1–6. Identify the three levels of management in a specific organization by level and title. Be sure to
give the organization’s name.
I work part time in the office for a car dealer, Casey Dodge. There are four supervisors: office
manager, service manager, sales manager, and auto body manager. These four supervisors report
to the general manager, who reports to the top manager, president/owner, Mr. Casey.
1–7. Identify which type of boss you have now or have had previously. If that person is or was a
functional manager, be sure to specify the functional tasks of the department.
When I worked for A&P Supermarket, I worked for Karen, the produce manager. Karen is a
functional manager and is responsible for the produce department. Karen did not hire the staff, but
she did have the functional tasks of training them to stock the shelves with produce and
supervising their work.
REVIEW QUESTION ANSWERS
1–1. What are a manager’s resources?
The manager’s resources are human, financial, physical, and informational.
1–2. What are the three management skills?
Management skills include technical, interpersonal, and decision-making skills.
1–3. What are the four functions of management?
The four functions of management include planning, organizing, leading, and controlling.
1–4. What are the three management role categories?
The three management role categories include interpersonal, informational, and decisional roles.
.
the customers and making sure they are happy with their haircut or nails; and if they are not, she
has the employee try to fix the problem. Once in a while she will give a customer the next visit free
so she doesn’t lose that person’s business.
1–5. Identify a specific manager, preferably one who is or was your boss, and give examples of how
that person performs in each of the three management role categories. Be sure to identify at least one
of the three or four roles in each category.
I worked this past summer primarily catching boxes as they came off the conveyer belt. My boss,
John, spent most of the time playing the interpersonal role of leader because the job was pretty
boring, and he tried to help us have a good time by joking around and gaining satisfaction from the
people we work with. John spent most of his time in the informational role as the monitor. When
the machines were acting up, he would tinker with them; or when he couldn’t fix them, he’d play
the disseminator role to get maintenance to come fix the machines. When we have a machine not
working, it’s a crisis, and John plays the decisional role of disturbance handler to fix them.
1–6. Identify the three levels of management in a specific organization by level and title. Be sure to
give the organization’s name.
I work part time in the office for a car dealer, Casey Dodge. There are four supervisors: office
manager, service manager, sales manager, and auto body manager. These four supervisors report
to the general manager, who reports to the top manager, president/owner, Mr. Casey.
1–7. Identify which type of boss you have now or have had previously. If that person is or was a
functional manager, be sure to specify the functional tasks of the department.
When I worked for A&P Supermarket, I worked for Karen, the produce manager. Karen is a
functional manager and is responsible for the produce department. Karen did not hire the staff, but
she did have the functional tasks of training them to stock the shelves with produce and
supervising their work.
REVIEW QUESTION ANSWERS
1–1. What are a manager’s resources?
The manager’s resources are human, financial, physical, and informational.
1–2. What are the three management skills?
Management skills include technical, interpersonal, and decision-making skills.
1–3. What are the four functions of management?
The four functions of management include planning, organizing, leading, and controlling.
1–4. What are the three management role categories?
The three management role categories include interpersonal, informational, and decisional roles.
Lussier, Management Fundamentals, 7e
.
the customers and making sure they are happy with their haircut or nails; and if they are not, she
has the employee try to fix the problem. Once in a while she will give a customer the next visit free
so she doesn’t lose that person’s business.
1–5. Identify a specific manager, preferably one who is or was your boss, and give examples of how
that person performs in each of the three management role categories. Be sure to identify at least one
of the three or four roles in each category.
I worked this past summer primarily catching boxes as they came off the conveyer belt. My boss,
John, spent most of the time playing the interpersonal role of leader because the job was pretty
boring, and he tried to help us have a good time by joking around and gaining satisfaction from the
people we work with. John spent most of his time in the informational role as the monitor. When
the machines were acting up, he would tinker with them; or when he couldn’t fix them, he’d play
the disseminator role to get maintenance to come fix the machines. When we have a machine not
working, it’s a crisis, and John plays the decisional role of disturbance handler to fix them.
1–6. Identify the three levels of management in a specific organization by level and title. Be sure to
give the organization’s name.
I work part time in the office for a car dealer, Casey Dodge. There are four supervisors: office
manager, service manager, sales manager, and auto body manager. These four supervisors report
to the general manager, who reports to the top manager, president/owner, Mr. Casey.
1–7. Identify which type of boss you have now or have had previously. If that person is or was a
functional manager, be sure to specify the functional tasks of the department.
When I worked for A&P Supermarket, I worked for Karen, the produce manager. Karen is a
functional manager and is responsible for the produce department. Karen did not hire the staff, but
she did have the functional tasks of training them to stock the shelves with produce and
supervising their work.
REVIEW QUESTION ANSWERS
1–1. What are a manager’s resources?
The manager’s resources are human, financial, physical, and informational.
1–2. What are the three management skills?
Management skills include technical, interpersonal, and decision-making skills.
1–3. What are the four functions of management?
The four functions of management include planning, organizing, leading, and controlling.
1–4. What are the three management role categories?
The three management role categories include interpersonal, informational, and decisional roles.
.
the customers and making sure they are happy with their haircut or nails; and if they are not, she
has the employee try to fix the problem. Once in a while she will give a customer the next visit free
so she doesn’t lose that person’s business.
1–5. Identify a specific manager, preferably one who is or was your boss, and give examples of how
that person performs in each of the three management role categories. Be sure to identify at least one
of the three or four roles in each category.
I worked this past summer primarily catching boxes as they came off the conveyer belt. My boss,
John, spent most of the time playing the interpersonal role of leader because the job was pretty
boring, and he tried to help us have a good time by joking around and gaining satisfaction from the
people we work with. John spent most of his time in the informational role as the monitor. When
the machines were acting up, he would tinker with them; or when he couldn’t fix them, he’d play
the disseminator role to get maintenance to come fix the machines. When we have a machine not
working, it’s a crisis, and John plays the decisional role of disturbance handler to fix them.
1–6. Identify the three levels of management in a specific organization by level and title. Be sure to
give the organization’s name.
I work part time in the office for a car dealer, Casey Dodge. There are four supervisors: office
manager, service manager, sales manager, and auto body manager. These four supervisors report
to the general manager, who reports to the top manager, president/owner, Mr. Casey.
1–7. Identify which type of boss you have now or have had previously. If that person is or was a
functional manager, be sure to specify the functional tasks of the department.
When I worked for A&P Supermarket, I worked for Karen, the produce manager. Karen is a
functional manager and is responsible for the produce department. Karen did not hire the staff, but
she did have the functional tasks of training them to stock the shelves with produce and
supervising their work.
REVIEW QUESTION ANSWERS
1–1. What are a manager’s resources?
The manager’s resources are human, financial, physical, and informational.
1–2. What are the three management skills?
Management skills include technical, interpersonal, and decision-making skills.
1–3. What are the four functions of management?
The four functions of management include planning, organizing, leading, and controlling.
1–4. What are the three management role categories?
The three management role categories include interpersonal, informational, and decisional roles.
Lussier, Management Fundamentals, 7e
.
1–5. What are the three levels of management?
The three levels of management are top managers, middle managers, and first-line managers.
1–6. What are the three types of managers?
The three types of managers are general managers, functional managers, and project mangers.
1–7. What are the objectives of this book?
The objectives of this book are to teach you the important concepts of management, to develop your
ability to apply the management concepts through critical thinking, and to develop your management
skills in your personal and professional lives.
COMMUNICATION SKILLS ANSWERS
Applications may also be used as class discussion questions or written assignments to develop
communication skills.
1–1. Are you interested in being a manager?
Answers will vary.
1–2. Why is it important to take this course in management?
Answers will vary. Some of the reasons may include that it is important to learn about management
because knowledge of what management is can help you to be a better employee, because this course
can help you to qualify to become a manager, and because it can help you if you become a manager.
1–3. Is it more important for managers to be efficient or effective? Can you improve both at the same
time?
It is more important for managers to be effective than efficient because even if managers do the wrong
things very well, they will not be successful.
No. You really can’t improve both at the same time in the sense that you have to be effective before you
can be efficient.
1–4. Is management ability universal? In other words, can a good manager in one environment (e.g.,
computers) also be effective in another (e.g., banking)?
Generally, the answer is yes. Many managers change industries throughout their careers and are
effective in more than one industry.
1–5. Some people say the hard skills (technical, finance, quantitative analysis) are more important for
managers than soft skills (interpersonal), and some say the opposite is true. What is your view?
.
1–5. What are the three levels of management?
The three levels of management are top managers, middle managers, and first-line managers.
1–6. What are the three types of managers?
The three types of managers are general managers, functional managers, and project mangers.
1–7. What are the objectives of this book?
The objectives of this book are to teach you the important concepts of management, to develop your
ability to apply the management concepts through critical thinking, and to develop your management
skills in your personal and professional lives.
COMMUNICATION SKILLS ANSWERS
Applications may also be used as class discussion questions or written assignments to develop
communication skills.
1–1. Are you interested in being a manager?
Answers will vary.
1–2. Why is it important to take this course in management?
Answers will vary. Some of the reasons may include that it is important to learn about management
because knowledge of what management is can help you to be a better employee, because this course
can help you to qualify to become a manager, and because it can help you if you become a manager.
1–3. Is it more important for managers to be efficient or effective? Can you improve both at the same
time?
It is more important for managers to be effective than efficient because even if managers do the wrong
things very well, they will not be successful.
No. You really can’t improve both at the same time in the sense that you have to be effective before you
can be efficient.
1–4. Is management ability universal? In other words, can a good manager in one environment (e.g.,
computers) also be effective in another (e.g., banking)?
Generally, the answer is yes. Many managers change industries throughout their careers and are
effective in more than one industry.
1–5. Some people say the hard skills (technical, finance, quantitative analysis) are more important for
managers than soft skills (interpersonal), and some say the opposite is true. What is your view?
Loading page 4...
Lussier, Management Fundamentals, 7e
.
Although it can make a good debate, it is really hard to say whether one is really more important than
the other. A truly good manager has both hard and soft skills; most people don’t progress in
management without both.
1–6. Is your college professor a manager? Why or why not?
No. College professors are not really managers, even though they do perform the four functions of
management. Students are not employees of the college; in essence, students are customers, so your
professor is not a manager.
1–7. When a good employee is promoted to management, which management level is the promotion
usually to, and how do the management skills and functions change with the job promotion?
When an employee is promoted, it is usually to the first-line management position. The employee’s
technical skills are still important, but interpersonal skills and decision-making skills become more
important as a manager. The nonmanager operative employee performs mostly nonmanagement
functions. However, as a manager, the new supervisor will have to spend more time planning,
organizing, leading, and controlling.
1–8. When an employee is promoted to a manager, do most organizations provide some type of
training? Should they? Why or why not?
No. Most organizations don’t provide any training when an employee is promoted to a manager.
Yes. The organization should provide some type of training for the employee. Most successful leaders
have had extensive training.
APPLYING THE CONCEPT ANSWERS
Applying the Concept 1–1: Management Skills
Identify each activity as being one of the following types of management skills:
A. technical
B. interpersonal
C. decision making
1. The manager is trying to figure out a way to solve a problem.
C. Decision-making. Part of the definition of decision-making is solving problems.
2. The manager is giving an employee praise for a job well done.
B. Interpersonal. Thanking someone with praise is a form of motivation.
3. The manager is working on fixing a broken machine.
A. Technical. Fixing a machine takes technical skills.
4. The bank president is letting the branch managers know they exceeded the loan quota for the
month in an email.
.
Although it can make a good debate, it is really hard to say whether one is really more important than
the other. A truly good manager has both hard and soft skills; most people don’t progress in
management without both.
1–6. Is your college professor a manager? Why or why not?
No. College professors are not really managers, even though they do perform the four functions of
management. Students are not employees of the college; in essence, students are customers, so your
professor is not a manager.
1–7. When a good employee is promoted to management, which management level is the promotion
usually to, and how do the management skills and functions change with the job promotion?
When an employee is promoted, it is usually to the first-line management position. The employee’s
technical skills are still important, but interpersonal skills and decision-making skills become more
important as a manager. The nonmanager operative employee performs mostly nonmanagement
functions. However, as a manager, the new supervisor will have to spend more time planning,
organizing, leading, and controlling.
1–8. When an employee is promoted to a manager, do most organizations provide some type of
training? Should they? Why or why not?
No. Most organizations don’t provide any training when an employee is promoted to a manager.
Yes. The organization should provide some type of training for the employee. Most successful leaders
have had extensive training.
APPLYING THE CONCEPT ANSWERS
Applying the Concept 1–1: Management Skills
Identify each activity as being one of the following types of management skills:
A. technical
B. interpersonal
C. decision making
1. The manager is trying to figure out a way to solve a problem.
C. Decision-making. Part of the definition of decision-making is solving problems.
2. The manager is giving an employee praise for a job well done.
B. Interpersonal. Thanking someone with praise is a form of motivation.
3. The manager is working on fixing a broken machine.
A. Technical. Fixing a machine takes technical skills.
4. The bank president is letting the branch managers know they exceeded the loan quota for the
month in an email.
Loading page 5...
Lussier, Management Fundamentals, 7e
.
B. Interpersonal. Although writing an e-mail does require some limited technical ability everyone seems
to have in business today, the focus is on communication of information. And communication is an
important part of interpersonal skills.
5. The manager is scheduling which machines will produce each product next week
c. Decision-making. Scheduling requires the manager to make decisions.
Applying the Concept 1–2: Management Functions
Indicate which type of function the manager is performing in each situation:
A. planning
B. organizing
C. leading
D. controlling
E. nonmanagement
6. The manager is conducting an employee’s annual performance evaluation.
b. Organizing. As stated in the text, Evaluating employees is part of the staffing-organizing function.
7. The manager is checking how many new bank accounts have been produced so far today.
d. Controlling. The manager is monitoring and measuring progress, which is in the definition of
controlling.
8. The manager is encouraging an employee to get a college degree so he can advance in the
company.
c. Leading. The manager is trying to influence the employee; influencing is in the definition of leadership.
9. The manager is conducting a job interview to select a new employee for a new open position in
accounting.
b. Organizing. As stated in the text, selecting is part of staffing-organizing function.
10. The manager is emptying her trash down the hall from her office.
e. Nonmanagement. The manager get the job done through others, and this is not really performing any
of the management functions.
11. The manager is scheduling employee work hours for the next two weeks.
a. Planning. Scheduling future work hours is part of planning.
12. The manager is giving the workers a pep talk to motivate them to work hard to meet the
production quota today with an absent employee.
c. Leading. The pep talk is given to motivate employees, which is intended to influence their
performance
Applying the Concept 1–3: Management Roles
Identify each of the managerial activities as part of one of the three role categories:
A. interpersonal role
B. informational role
C. decisional role
.
B. Interpersonal. Although writing an e-mail does require some limited technical ability everyone seems
to have in business today, the focus is on communication of information. And communication is an
important part of interpersonal skills.
5. The manager is scheduling which machines will produce each product next week
c. Decision-making. Scheduling requires the manager to make decisions.
Applying the Concept 1–2: Management Functions
Indicate which type of function the manager is performing in each situation:
A. planning
B. organizing
C. leading
D. controlling
E. nonmanagement
6. The manager is conducting an employee’s annual performance evaluation.
b. Organizing. As stated in the text, Evaluating employees is part of the staffing-organizing function.
7. The manager is checking how many new bank accounts have been produced so far today.
d. Controlling. The manager is monitoring and measuring progress, which is in the definition of
controlling.
8. The manager is encouraging an employee to get a college degree so he can advance in the
company.
c. Leading. The manager is trying to influence the employee; influencing is in the definition of leadership.
9. The manager is conducting a job interview to select a new employee for a new open position in
accounting.
b. Organizing. As stated in the text, selecting is part of staffing-organizing function.
10. The manager is emptying her trash down the hall from her office.
e. Nonmanagement. The manager get the job done through others, and this is not really performing any
of the management functions.
11. The manager is scheduling employee work hours for the next two weeks.
a. Planning. Scheduling future work hours is part of planning.
12. The manager is giving the workers a pep talk to motivate them to work hard to meet the
production quota today with an absent employee.
c. Leading. The pep talk is given to motivate employees, which is intended to influence their
performance
Applying the Concept 1–3: Management Roles
Identify each of the managerial activities as part of one of the three role categories:
A. interpersonal role
B. informational role
C. decisional role
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Lussier, Management Fundamentals, 7e
.
13. The manager shows a police officer how to complete the paperwork for an arrest.
a. Interpersonal role. The manager is playing the leader role by showing the employee how to fill out the
form.
14. The manager discusses next year’s budget.
c. Decisional role. As stated in the text, Budgeting is part of the resource allocation role
15. The CEO is cutting the ribbon at the groundbreaking for the new restaurant.
a. Interpersonal role. The manager is playing the figurehead role—ceremonial activity.
16. The manager develops a new app that will be sold as an additional source of income.
c. Decisional role. The manager is playing the entrepreneur role by developing a new app.
17. The manager is reading the monthly production report before beginning work.
b. Informational role. The manager is playing the monitor role by reading the report to receive
information.
Applying the Concept 1–4: Differences Among Management Levels
Identify the level of management in the following five instances:
A. top
B. middle
C. first-line
18. Managers who tend to spend more time planning and organizing.
A. Top. Top managers spend more time planning and organizing than do first-line or middle managers.
19. Managers who have operative employees reporting to them.
C. First-line. First-line managers supervise operative employees.
20. Managers who take the long-term strategy and develop short-term operating plans.
B. Middle. Middle managers have a more balanced need for the management skills and functions.
21. Managers who report to executives.
B. Middle. Middle managers report to an executive.
22. Managers who need technical skills more than decision-making skills.
C. First-line. First-line managers have a greater need for technical skills than do top or middle managers.
JOIN THE DISCUSSION ANSWERS
Join the Discussion 1–1: Executive Compensation
In 2013, the CEO-to-worker pay ratio was 331:1, and the CEO-to-minimum-wage-worker pay ratio was
774:1. Oracle’s CEO made an estimated $189,000 per hour in one year. A minimum-wage full-time
.
13. The manager shows a police officer how to complete the paperwork for an arrest.
a. Interpersonal role. The manager is playing the leader role by showing the employee how to fill out the
form.
14. The manager discusses next year’s budget.
c. Decisional role. As stated in the text, Budgeting is part of the resource allocation role
15. The CEO is cutting the ribbon at the groundbreaking for the new restaurant.
a. Interpersonal role. The manager is playing the figurehead role—ceremonial activity.
16. The manager develops a new app that will be sold as an additional source of income.
c. Decisional role. The manager is playing the entrepreneur role by developing a new app.
17. The manager is reading the monthly production report before beginning work.
b. Informational role. The manager is playing the monitor role by reading the report to receive
information.
Applying the Concept 1–4: Differences Among Management Levels
Identify the level of management in the following five instances:
A. top
B. middle
C. first-line
18. Managers who tend to spend more time planning and organizing.
A. Top. Top managers spend more time planning and organizing than do first-line or middle managers.
19. Managers who have operative employees reporting to them.
C. First-line. First-line managers supervise operative employees.
20. Managers who take the long-term strategy and develop short-term operating plans.
B. Middle. Middle managers have a more balanced need for the management skills and functions.
21. Managers who report to executives.
B. Middle. Middle managers report to an executive.
22. Managers who need technical skills more than decision-making skills.
C. First-line. First-line managers have a greater need for technical skills than do top or middle managers.
JOIN THE DISCUSSION ANSWERS
Join the Discussion 1–1: Executive Compensation
In 2013, the CEO-to-worker pay ratio was 331:1, and the CEO-to-minimum-wage-worker pay ratio was
774:1. Oracle’s CEO made an estimated $189,000 per hour in one year. A minimum-wage full-time
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Lussier, Management Fundamentals, 7e
.
employee at Walmart would have to work 1,372 hours to earn as much as the CEO makes in one hour.
Some say top executives are being overpaid. Fortune 500 CEOs all make millions.
However, not everyone agrees. In capitalist countries, talented CEOs, like in pro sports, are entitled to
fetch their price. Top executives should be paid multimillion-dollar compensation packages; after all, if it
weren’t for effective CEOs, companies would not be making the millions of dollars of profits they make
each year. CEOs deserve a piece of the pie they help create.
1. Do executives deserve to make 300 times more than the average worker?
Answers vary
2. Is it ethical for managers to take large pay increases when laying off employees?
Answers vary
3. Is it ethical for managers to get pay raises when their companies lose money?
Answers vary
4. Are companies being socially responsible when paying executives premium compensation?
Answers vary
.
employee at Walmart would have to work 1,372 hours to earn as much as the CEO makes in one hour.
Some say top executives are being overpaid. Fortune 500 CEOs all make millions.
However, not everyone agrees. In capitalist countries, talented CEOs, like in pro sports, are entitled to
fetch their price. Top executives should be paid multimillion-dollar compensation packages; after all, if it
weren’t for effective CEOs, companies would not be making the millions of dollars of profits they make
each year. CEOs deserve a piece of the pie they help create.
1. Do executives deserve to make 300 times more than the average worker?
Answers vary
2. Is it ethical for managers to take large pay increases when laying off employees?
Answers vary
3. Is it ethical for managers to get pay raises when their companies lose money?
Answers vary
4. Are companies being socially responsible when paying executives premium compensation?
Answers vary
Loading page 8...
Answers to Questions in the Text
Chapter 2: The Environment: Culture, Ethics, and
Social Responsibility
WORK APPLICATION SAMPLE ANSWERS
Most of the answers are actual student answers or based on student answers. You may give these answers as part of your
lecture before, after, or in place of getting student answers.
2–1. State the mission of an organization, preferably an organization you work for or have worked for.
The mission of Springfield College is to educate students in spirit, mind, and body for leadership in service to humanity by
building upon its foundation of humanics and academic excellence.
2–2. Illustrate the systems process for an organization you work for or have worked for.
At McDonald’s we get inputs including meat, buns, lettuce, cheese, pickles, onions, sauce, and Big Mac boxes. We cook the
all-beef patties and put them on a bun with lettuce, cheese, pickles, onions, and sauce. Then we put them in a box as our Big
Mac output.
2–3. Identify the quality and value of a product you purchased recently.
I bought a used 2006 Honda Accord because of its reputation for being a quality automobile. My Honda was a good value
because I got a good price on it, but more importantly, it provides me with the pleasure of being able to go where I want to
go, when I want to go, and I’m doing it in a sporty-looking car with a standard shift.
2–4. Identify the cultural heroes, stories, slogans, symbols, and ceremonies for an organization you are/were a member
of.
At Springfield College, I’ve heard that Dogget was a hero. I don’t recall any stories. The Springfield College triangle of spirit,
mind, and body is the symbol used at the college. The Humanics Philosophy is a Springfield College slogan. There are a few
awards ceremonies, such as Stepping Up Day.
2–5. Describe the organizational culture at all three levels for a firm you work for or have worked for. Does the
organization have a strong or a weak and a healthy or an unhealthy culture?
I work at Abdows Big Boy Restaurant. Our major assumption is deeply ingrained so that is it the same as our values and
beliefs. Our value and belief is customer satisfaction. We are trained, and see by example, how important it is to give quick,
courteous service. One of the expected behaviors is to help others provide customer service. For example, if one table
server is busy and another is not, you wait on tables that are not yours until the person catches up. Table servers also help
bus people to clean tables when they are busy.
We have a strong and healthy culture. Everyone works together with similar behavior and values and beliefs to help Abdows
succeed at meeting its mission.
2–6. Give an example of how one firm’s competitors have affected that business.
Chapter 2: The Environment: Culture, Ethics, and
Social Responsibility
WORK APPLICATION SAMPLE ANSWERS
Most of the answers are actual student answers or based on student answers. You may give these answers as part of your
lecture before, after, or in place of getting student answers.
2–1. State the mission of an organization, preferably an organization you work for or have worked for.
The mission of Springfield College is to educate students in spirit, mind, and body for leadership in service to humanity by
building upon its foundation of humanics and academic excellence.
2–2. Illustrate the systems process for an organization you work for or have worked for.
At McDonald’s we get inputs including meat, buns, lettuce, cheese, pickles, onions, sauce, and Big Mac boxes. We cook the
all-beef patties and put them on a bun with lettuce, cheese, pickles, onions, and sauce. Then we put them in a box as our Big
Mac output.
2–3. Identify the quality and value of a product you purchased recently.
I bought a used 2006 Honda Accord because of its reputation for being a quality automobile. My Honda was a good value
because I got a good price on it, but more importantly, it provides me with the pleasure of being able to go where I want to
go, when I want to go, and I’m doing it in a sporty-looking car with a standard shift.
2–4. Identify the cultural heroes, stories, slogans, symbols, and ceremonies for an organization you are/were a member
of.
At Springfield College, I’ve heard that Dogget was a hero. I don’t recall any stories. The Springfield College triangle of spirit,
mind, and body is the symbol used at the college. The Humanics Philosophy is a Springfield College slogan. There are a few
awards ceremonies, such as Stepping Up Day.
2–5. Describe the organizational culture at all three levels for a firm you work for or have worked for. Does the
organization have a strong or a weak and a healthy or an unhealthy culture?
I work at Abdows Big Boy Restaurant. Our major assumption is deeply ingrained so that is it the same as our values and
beliefs. Our value and belief is customer satisfaction. We are trained, and see by example, how important it is to give quick,
courteous service. One of the expected behaviors is to help others provide customer service. For example, if one table
server is busy and another is not, you wait on tables that are not yours until the person catches up. Table servers also help
bus people to clean tables when they are busy.
We have a strong and healthy culture. Everyone works together with similar behavior and values and beliefs to help Abdows
succeed at meeting its mission.
2–6. Give an example of how one firm’s competitors have affected that business.
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In East Longmeadow, there is a Big Y Supermarket that had no competitors nearby. However, an Edward’s Supermarket
moved in across the street from Big Y. As a result, Big Y has lost some customers it would have kept if Edward’s had not
moved in across the street.
2–7. Give an example of how technology has affected one or more organizations, preferably one you work for or have
worked for.
When I used to shop at Costco Wholesale, it had two people at the checkout. One person would read the product numbers
to the other one who would type them into the cash register. But now Costco Wholesale finally upgraded its technology to
the modern computer scanners. Now it only needs one person at each cashier station. It is more accurate and faster at
checking people out, so it has created customer value.
2–8. Give an example from an organization where you work or have worked of behavior at each of the three levels of
moral development.
At CDR Grocery, where I used to work, many of my coworkers displayed preconventional behavior by lying to look good.
Also, many of my coworkers would display conventional behavior by taking longer breaks because they felt it was justified
since “everyone else did it.” I displayed postconventional behavior because I tended to work faster than the rest of my
coworkers when we stocked shelves, even though they complained about it.
2–9. Give at least two organizational examples of unethical behavior and the justification that was used in each instance.
Moral justification—I lied to get competitor information only to help the company.
Advantageous comparison—I only take a long lunch once in a while; Tom does it all the time.
2–10. Select a business and identify how it manages ethics.
When I worked at Allstate Insurance, it had a code of ethics that stressed being fair to the policyholder. Top management
did give a good example of ethical behavior. As an auto accident adjuster, I was not paid by commission, so there was no
need for me to try to give people less money than it took to do the job correctly. My boss also reminded me to be fair to the
customers; it was one criterion of my performance appraisal.
2–11. Select a business and identify how it is socially responsible on a specific issue.
I’m the coach for the Blue Angels Little League baseball team in my hometown. I went to Pizza Plaza and got it to be our
sponsor. Pizza Plaza paid for new uniforms, and on the back of each shirt it says “Pizza Plaza.” Pizza Plaza used social
reaction by granting the request for sponsorship of the Blue Angels.
2–12. Select a business and identify its sustainability practices.
I work for Walker Construction. We recycle all paper and plastic products at our office. Our office has LEED–certified
interiors and exteriors. Also, all employees must turn off their computers at the end of each workday before they go home.
And if you are the last employee to leave at the end of the day, your job is to turn out all the lights so that no electricity is
wasted while no one is at the office.
REVIEW QUESTION ANSWERS
2–1. What are the factors within the internal environment?
The five internal environmental factors are management and culture, mission, resources, the systems process, and
structure.
2–2. What are the components of the systems process?
moved in across the street from Big Y. As a result, Big Y has lost some customers it would have kept if Edward’s had not
moved in across the street.
2–7. Give an example of how technology has affected one or more organizations, preferably one you work for or have
worked for.
When I used to shop at Costco Wholesale, it had two people at the checkout. One person would read the product numbers
to the other one who would type them into the cash register. But now Costco Wholesale finally upgraded its technology to
the modern computer scanners. Now it only needs one person at each cashier station. It is more accurate and faster at
checking people out, so it has created customer value.
2–8. Give an example from an organization where you work or have worked of behavior at each of the three levels of
moral development.
At CDR Grocery, where I used to work, many of my coworkers displayed preconventional behavior by lying to look good.
Also, many of my coworkers would display conventional behavior by taking longer breaks because they felt it was justified
since “everyone else did it.” I displayed postconventional behavior because I tended to work faster than the rest of my
coworkers when we stocked shelves, even though they complained about it.
2–9. Give at least two organizational examples of unethical behavior and the justification that was used in each instance.
Moral justification—I lied to get competitor information only to help the company.
Advantageous comparison—I only take a long lunch once in a while; Tom does it all the time.
2–10. Select a business and identify how it manages ethics.
When I worked at Allstate Insurance, it had a code of ethics that stressed being fair to the policyholder. Top management
did give a good example of ethical behavior. As an auto accident adjuster, I was not paid by commission, so there was no
need for me to try to give people less money than it took to do the job correctly. My boss also reminded me to be fair to the
customers; it was one criterion of my performance appraisal.
2–11. Select a business and identify how it is socially responsible on a specific issue.
I’m the coach for the Blue Angels Little League baseball team in my hometown. I went to Pizza Plaza and got it to be our
sponsor. Pizza Plaza paid for new uniforms, and on the back of each shirt it says “Pizza Plaza.” Pizza Plaza used social
reaction by granting the request for sponsorship of the Blue Angels.
2–12. Select a business and identify its sustainability practices.
I work for Walker Construction. We recycle all paper and plastic products at our office. Our office has LEED–certified
interiors and exteriors. Also, all employees must turn off their computers at the end of each workday before they go home.
And if you are the last employee to leave at the end of the day, your job is to turn out all the lights so that no electricity is
wasted while no one is at the office.
REVIEW QUESTION ANSWERS
2–1. What are the factors within the internal environment?
The five internal environmental factors are management and culture, mission, resources, the systems process, and
structure.
2–2. What are the components of the systems process?
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The systems process has four components: (1) inputs, (2) transformation, (3) outputs, and (4) feedback.
2–2. What are the components of the systems process?
The systems process has four components: (1) inputs, (2) transformation, (3) outputs, and (4) feedback.
2–3. How is quality determined, and why do people buy products?
Customers determine quality by comparing a product’s actual functioning to their requirements to determine value.
People don’t simply buy a product itself. They buy the benefit they expect to derive from that product.
2–4. What are the five artifacts of organizational culture?
The five artifacts of culture are: (1) heroes, (2) stories, (3) slogans, (4) symbols, and (5) ceremonies.
2–5. What are the levels of culture?
The three levels of culture are behavior, values and beliefs, and assumptions.
2–6. What is a learning organization?
A learning organization has a culture that values sharing knowledge so as to adapt to the changing environment and
continuously improve.
2–7. What is the external environment?
The organization’s external environment includes the factors outside its boundaries that affect its performance.
2–8. What are the levels of moral development?
The three levels of moral development are preconventional, conventional, and postconventional.
2–9. How do people justify unethical behavior?
People justify unethical behavior by using moral justification for the behavior, including displacement of responsibility,
diffusion of responsibility, advantageous comparison, disregard or distortion of consequences, attribution of blame,
and euphemistic labeling.
2–10. What is the stakeholders’ approach to ethics?
Under the stakeholders’ approach to ethics, when making decisions, you try to create a win-win situation for all
relevant stakeholders so that everyone benefits from the decision.
2–11. What is social responsibility?
Social responsibility is the conscious effort to operate in a manner that creates a win-win situation for all stakeholders.
2–12. What are some ways in which businesses are going “green”?
Firms are going green by constructing energy-efficient buildings, installing or upgrading recycling systems, using
renewable energy, purchasing environmentally preferable equipment and supplies, and working with one another and
with surrounding communities to advance sustainability values.
2–2. What are the components of the systems process?
The systems process has four components: (1) inputs, (2) transformation, (3) outputs, and (4) feedback.
2–3. How is quality determined, and why do people buy products?
Customers determine quality by comparing a product’s actual functioning to their requirements to determine value.
People don’t simply buy a product itself. They buy the benefit they expect to derive from that product.
2–4. What are the five artifacts of organizational culture?
The five artifacts of culture are: (1) heroes, (2) stories, (3) slogans, (4) symbols, and (5) ceremonies.
2–5. What are the levels of culture?
The three levels of culture are behavior, values and beliefs, and assumptions.
2–6. What is a learning organization?
A learning organization has a culture that values sharing knowledge so as to adapt to the changing environment and
continuously improve.
2–7. What is the external environment?
The organization’s external environment includes the factors outside its boundaries that affect its performance.
2–8. What are the levels of moral development?
The three levels of moral development are preconventional, conventional, and postconventional.
2–9. How do people justify unethical behavior?
People justify unethical behavior by using moral justification for the behavior, including displacement of responsibility,
diffusion of responsibility, advantageous comparison, disregard or distortion of consequences, attribution of blame,
and euphemistic labeling.
2–10. What is the stakeholders’ approach to ethics?
Under the stakeholders’ approach to ethics, when making decisions, you try to create a win-win situation for all
relevant stakeholders so that everyone benefits from the decision.
2–11. What is social responsibility?
Social responsibility is the conscious effort to operate in a manner that creates a win-win situation for all stakeholders.
2–12. What are some ways in which businesses are going “green”?
Firms are going green by constructing energy-efficient buildings, installing or upgrading recycling systems, using
renewable energy, purchasing environmentally preferable equipment and supplies, and working with one another and
with surrounding communities to advance sustainability values.
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COMMUNICATION SKILLS ANSWERS
2–1. Do you believe that most organizations focus on creating customer value?
Answers will vary.
2–2. Do you think that all organizations should use total quality management (TQM)? Explain your answer.
Answers will vary, but students should realize the importance of the two TQM principles in all organizations.
2–3. What is the relationship among management and mission, resources, the systems process, and structure? Which of
these internal factors are ends, and which are means?
Management determines the mission, resources, systems process, and structure; all affect organizational performance.
The mission is an expression of the ends the organization strives to attain. The other internal environment factors are
considered the means to achieve the ends.
2–4. Which of the five artifacts, or important ways that employees learn about organizational culture, is the most
important?
Answers will vary.
2–5. What is the difference between a strong and weak organizational culture, and which is preferable?
Organizations with strong cultures have employees who subconsciously know the shared assumptions; consciously
know the values and beliefs; agree with the shared assumptions, values, and beliefs; and behave as expected. A
positive strong culture is preferred.
2–6. What is symbolic leadership? Is it important?
Symbolic leaders articulate a vision for an organization and reinforce the culture through slogans, symbols, and
ceremonies.
Yes. As stated in the text, managing culture is an important part of top management. To successfully change or merge
cultures, a strong symbolic leader is needed.
2–7. What is a learning organization? Should a manager create one?
A learning organization has a culture that values sharing knowledge so as to adapt to the changing environment and
continuously improve.
Yes. Managers that don’t change with the environment will not be successful in the long run.
2–8. If you can’t control the external environment, why be concerned about it anyway?
Businesses should be concerned about the external environment because it can affect the business’s performance.
Although a business can’t control the external environment, it needs to try to influence the external factors to its
advantage, or at least adjust to them.
2–9. Do you believe that ethical behavior will pay off in the long run?
Answers will vary, but students should realize the importance of ethics in business.
2–1. Do you believe that most organizations focus on creating customer value?
Answers will vary.
2–2. Do you think that all organizations should use total quality management (TQM)? Explain your answer.
Answers will vary, but students should realize the importance of the two TQM principles in all organizations.
2–3. What is the relationship among management and mission, resources, the systems process, and structure? Which of
these internal factors are ends, and which are means?
Management determines the mission, resources, systems process, and structure; all affect organizational performance.
The mission is an expression of the ends the organization strives to attain. The other internal environment factors are
considered the means to achieve the ends.
2–4. Which of the five artifacts, or important ways that employees learn about organizational culture, is the most
important?
Answers will vary.
2–5. What is the difference between a strong and weak organizational culture, and which is preferable?
Organizations with strong cultures have employees who subconsciously know the shared assumptions; consciously
know the values and beliefs; agree with the shared assumptions, values, and beliefs; and behave as expected. A
positive strong culture is preferred.
2–6. What is symbolic leadership? Is it important?
Symbolic leaders articulate a vision for an organization and reinforce the culture through slogans, symbols, and
ceremonies.
Yes. As stated in the text, managing culture is an important part of top management. To successfully change or merge
cultures, a strong symbolic leader is needed.
2–7. What is a learning organization? Should a manager create one?
A learning organization has a culture that values sharing knowledge so as to adapt to the changing environment and
continuously improve.
Yes. Managers that don’t change with the environment will not be successful in the long run.
2–8. If you can’t control the external environment, why be concerned about it anyway?
Businesses should be concerned about the external environment because it can affect the business’s performance.
Although a business can’t control the external environment, it needs to try to influence the external factors to its
advantage, or at least adjust to them.
2–9. Do you believe that ethical behavior will pay off in the long run?
Answers will vary, but students should realize the importance of ethics in business.
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2–10. Do you have your own guide to ethical behavior that you follow now? Will you use one of the guides from the text?
If yes, which one and why?
Answers will vary.
2–11. Can ethics be taught and learned?
According to a study done at Harvard, the answer is yes; however, not everyone agrees. But most people realize that in
learning about ethics and possible ethical situations, students are better prepared to handle ethics when the need
arises on the job.
2–12. Do you believe that companies benefit from being socially responsible? Why or why not?
Answers will vary.
2–13. Do you believe that all businesses should go “green”? Why or why not?
Answers will vary.
APPLYING THE CONCEPT ANSWERS
Applying the Concept 2–1: The Internal Environment
Identify the internal environmental factor underlying each statement.
A. management and culture
B. mission
C. resources
D. systems process
E. structure
1. “We plant seeds, grow vegetables, cut them up, place them in a bag, and sell them to Stop and Shop supermarkets as
locally grown.”
D. Systems process. Inputs are being converted into outputs.
2. “We are buying a new software package to improve our customers’ privacy and security.”
C. Resources. Software is a physical resource.
3. “Yes. We sell donuts, but we make more money on real estate by renting our facilities to franchisees.”
B. Mission. Real estate is the actual purpose of the business.
4. “We are splitting computer sales into desk PCs and mobile laptops and tablets.”
E. Structure. Splitting a department changes the existing structure.
5. “The CEO has been fired for unethical behavior, and the CFO is moving up to replace him.”
A. Management and culture. There is a change in Management.
Applying the Concept 2–2: Strong and Weak Cultures
Identify whether each statement reflects an organization with a strong or weak culture.
A. strong culture
B. weak culture
If yes, which one and why?
Answers will vary.
2–11. Can ethics be taught and learned?
According to a study done at Harvard, the answer is yes; however, not everyone agrees. But most people realize that in
learning about ethics and possible ethical situations, students are better prepared to handle ethics when the need
arises on the job.
2–12. Do you believe that companies benefit from being socially responsible? Why or why not?
Answers will vary.
2–13. Do you believe that all businesses should go “green”? Why or why not?
Answers will vary.
APPLYING THE CONCEPT ANSWERS
Applying the Concept 2–1: The Internal Environment
Identify the internal environmental factor underlying each statement.
A. management and culture
B. mission
C. resources
D. systems process
E. structure
1. “We plant seeds, grow vegetables, cut them up, place them in a bag, and sell them to Stop and Shop supermarkets as
locally grown.”
D. Systems process. Inputs are being converted into outputs.
2. “We are buying a new software package to improve our customers’ privacy and security.”
C. Resources. Software is a physical resource.
3. “Yes. We sell donuts, but we make more money on real estate by renting our facilities to franchisees.”
B. Mission. Real estate is the actual purpose of the business.
4. “We are splitting computer sales into desk PCs and mobile laptops and tablets.”
E. Structure. Splitting a department changes the existing structure.
5. “The CEO has been fired for unethical behavior, and the CFO is moving up to replace him.”
A. Management and culture. There is a change in Management.
Applying the Concept 2–2: Strong and Weak Cultures
Identify whether each statement reflects an organization with a strong or weak culture.
A. strong culture
B. weak culture
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6. “Oh no, do I really have to listen to the story about how the company founder Ted walked three miles in a snowstorm
to deliver the package on time again?”
A. Strong culture. It appears that there is conformity with everyone dressing similarly. If some people wear jackets and ties
and others don’t, it’s optional and a weak part of expected behavior.
7. “Everyone in the department acts differently, so I guess I can just be me rather than trying to act in a manner
acceptable to others.”
A. Strong culture. Stories are a part of a strong culture.
8. “It’s hard to know if I need to follow the ethics code because managers act unethically every now and then.”
B. Weak culture. When expected behavior is not clear, there is a weak culture.
9. “I started to tell this ‘dumb blond’ joke, and the other employees all gave me a dirty look, so I stopped.”
B. Weak culture. Unclear values are an indication of a weak culture.
10. “When I walked around the department during my job interview, I realized I’d have to come to work in formal attire
because all the women were wearing dresses or suits.”
A. Strong culture. The group is giving a “dirty look” to convey that ethical jokes are not acceptable behavior. Employees
enforcing behavior comes from a strong culture.
Applying the Concept 2–3: The External Environment
Identify which external environmental factor is referred to in each statement.
A. customers
B. competition
C. suppliers
D. labor force
E. shareholders
F. society
G. technology
H. the economy
I. governments
11. “Are you going to close that sale to Costco?”
I. Governments. The government can stop mergers and acquisitions when it believes society will be harmed by the business
transaction.
12. “If we don’t get a 4% raise, the Teamsters union will go on strike at our company.”
G. Technology. A new material is a technology change.
13. “Animal activist groups pressured the Ringling Brothers circus to the point that it will stop having elephant acts in
2018.”
B. Competition. AT&T lost its monopoly, as it has competition now.
14. “KFC bought some bad chickens in China, and sales declined.”
H. The economy. The government can influence the economy through monetary policy of changing the amount of money in
the economy.
to deliver the package on time again?”
A. Strong culture. It appears that there is conformity with everyone dressing similarly. If some people wear jackets and ties
and others don’t, it’s optional and a weak part of expected behavior.
7. “Everyone in the department acts differently, so I guess I can just be me rather than trying to act in a manner
acceptable to others.”
A. Strong culture. Stories are a part of a strong culture.
8. “It’s hard to know if I need to follow the ethics code because managers act unethically every now and then.”
B. Weak culture. When expected behavior is not clear, there is a weak culture.
9. “I started to tell this ‘dumb blond’ joke, and the other employees all gave me a dirty look, so I stopped.”
B. Weak culture. Unclear values are an indication of a weak culture.
10. “When I walked around the department during my job interview, I realized I’d have to come to work in formal attire
because all the women were wearing dresses or suits.”
A. Strong culture. The group is giving a “dirty look” to convey that ethical jokes are not acceptable behavior. Employees
enforcing behavior comes from a strong culture.
Applying the Concept 2–3: The External Environment
Identify which external environmental factor is referred to in each statement.
A. customers
B. competition
C. suppliers
D. labor force
E. shareholders
F. society
G. technology
H. the economy
I. governments
11. “Are you going to close that sale to Costco?”
I. Governments. The government can stop mergers and acquisitions when it believes society will be harmed by the business
transaction.
12. “If we don’t get a 4% raise, the Teamsters union will go on strike at our company.”
G. Technology. A new material is a technology change.
13. “Animal activist groups pressured the Ringling Brothers circus to the point that it will stop having elephant acts in
2018.”
B. Competition. AT&T lost its monopoly, as it has competition now.
14. “KFC bought some bad chickens in China, and sales declined.”
H. The economy. The government can influence the economy through monetary policy of changing the amount of money in
the economy.
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15. Our company was going to be sold to Sprint, but the government said that would be in violation of antitrust laws.”
E. Shareholders. They own the company and appoint top managers.
16. “Tesla is working on software for its cars to be self-driven.”
G. Technology. New software is a technology change.
17. “LinkedIn and other social media websites took some of the traffic flow away from Facebook.”
B. Competition. The social media websites compete with each other for viewers.
18. “Since the recession ended, we have had an increase in sales, but revenues are still not above pre-recession levels.”
H. The economy. Sales tend to go with the state of the economy; down in a recession and up during growth periods.
19. “The owners of the company will get to vote on its being acquired or staying independent.”
E. Shareholders. They own the company and may get a vote on issues like acqusitions and mergers.
Applying the Concept 2–4: Level of Moral Development
Identify each statement by its level of moral development.
A. preconventional level
B. conventional level
C. postconventional level
20. I can’t lie to customers because it is against my religion; it is a sin to lie.
C. Postconventional. The person is not lying because of religious honest.
21. Carl says to Lolo, “You’re not selling as much as the rest of us. You really should lie to customers like we do. If the boss
asks why you aren’t selling as much as the rest of us, you better not tell him we lie, or you will be sorry.”
B. Conventional. Carl is using peer pressure to get Lolo to be unethical.
22. Latavia says to John, “There is no big deal in telling lies to customers. We are helping them buy a good product.”
A. Preconventional. Latavia is trying to convince John that lying is OK.
E. Shareholders. They own the company and appoint top managers.
16. “Tesla is working on software for its cars to be self-driven.”
G. Technology. New software is a technology change.
17. “LinkedIn and other social media websites took some of the traffic flow away from Facebook.”
B. Competition. The social media websites compete with each other for viewers.
18. “Since the recession ended, we have had an increase in sales, but revenues are still not above pre-recession levels.”
H. The economy. Sales tend to go with the state of the economy; down in a recession and up during growth periods.
19. “The owners of the company will get to vote on its being acquired or staying independent.”
E. Shareholders. They own the company and may get a vote on issues like acqusitions and mergers.
Applying the Concept 2–4: Level of Moral Development
Identify each statement by its level of moral development.
A. preconventional level
B. conventional level
C. postconventional level
20. I can’t lie to customers because it is against my religion; it is a sin to lie.
C. Postconventional. The person is not lying because of religious honest.
21. Carl says to Lolo, “You’re not selling as much as the rest of us. You really should lie to customers like we do. If the boss
asks why you aren’t selling as much as the rest of us, you better not tell him we lie, or you will be sorry.”
B. Conventional. Carl is using peer pressure to get Lolo to be unethical.
22. Latavia says to John, “There is no big deal in telling lies to customers. We are helping them buy a good product.”
A. Preconventional. Latavia is trying to convince John that lying is OK.
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Lussier, Management Fundamentals, 7e
Applying the Concept 2–5: Ethical Approach
Identify each statement by its approach to making ethical decisions.
A. Golden Rule
B. four-way test
C. stakeholder’s approach
D. discernment and advice
E. code of ethics
23. I’m a member of Rotary International, and I use its approach when I make decisions.
B. Four-Way test. The Rotary approach is the four-step method.
24. When I make decision, I follow the guidelines the company gave all of us to use to make sure I’m
doing the right thing.
E. Code of ethics. Companies have codes of ethics for all employees to follow.
25. I try to make sure that everyone affected by my decisions gets a fair deal.
C. Stakeholder’s approach. The person is trying to create a win-win situation for all stakeholders
involved.
26. I try to treat people the way I want them to treat me.
A. Golden rule. This statement is essentially saying Do unto others as you would want them to do unto
you.
27. Latoya, what do you think of my decision for handling this customer’s complaint?
D. . Discernment and Advice. The person is considering if the decision is ethical or not and getting
advice to determine if it is or not.
JOIN THE DISCUSSION ANSWERS
Join the Discussion 2–1: Downsizing and Part-Time Workers
As firms struggle to compete in the global economy, many have downsized. Downsizing is the process of
cutting resources to get more done with less and thereby increase productivity. In some firms, the
positions formerly held by full-time employees are filled by part-time workers. Using part-time
employees saves companies money because such employees do not receive any benefits (e.g., health
insurance), in contrast to full-time employees, who are entitled to benefits. Walmart is known for
maintaining a very high ratio of part-time to full-time employees as a way of keeping costs down.
Walmart’s employment policy is one of the reasons the chain can offer lower prices.
1. Is downsizing ethical and socially responsible?
Answers vary
2. Is using part-time employees rather than full-time ones ethical and socially responsible?
Answers vary
Applying the Concept 2–5: Ethical Approach
Identify each statement by its approach to making ethical decisions.
A. Golden Rule
B. four-way test
C. stakeholder’s approach
D. discernment and advice
E. code of ethics
23. I’m a member of Rotary International, and I use its approach when I make decisions.
B. Four-Way test. The Rotary approach is the four-step method.
24. When I make decision, I follow the guidelines the company gave all of us to use to make sure I’m
doing the right thing.
E. Code of ethics. Companies have codes of ethics for all employees to follow.
25. I try to make sure that everyone affected by my decisions gets a fair deal.
C. Stakeholder’s approach. The person is trying to create a win-win situation for all stakeholders
involved.
26. I try to treat people the way I want them to treat me.
A. Golden rule. This statement is essentially saying Do unto others as you would want them to do unto
you.
27. Latoya, what do you think of my decision for handling this customer’s complaint?
D. . Discernment and Advice. The person is considering if the decision is ethical or not and getting
advice to determine if it is or not.
JOIN THE DISCUSSION ANSWERS
Join the Discussion 2–1: Downsizing and Part-Time Workers
As firms struggle to compete in the global economy, many have downsized. Downsizing is the process of
cutting resources to get more done with less and thereby increase productivity. In some firms, the
positions formerly held by full-time employees are filled by part-time workers. Using part-time
employees saves companies money because such employees do not receive any benefits (e.g., health
insurance), in contrast to full-time employees, who are entitled to benefits. Walmart is known for
maintaining a very high ratio of part-time to full-time employees as a way of keeping costs down.
Walmart’s employment policy is one of the reasons the chain can offer lower prices.
1. Is downsizing ethical and socially responsible?
Answers vary
2. Is using part-time employees rather than full-time ones ethical and socially responsible?
Answers vary
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Lussier, Management Fundamentals, 7e
3. Would you be willing to pay higher prices at stores, such as Walmart, so that more full-time
workers could replace part-time workers?
Answers vary
Join the Discussion 2–2: Sex, Profanity, and Violence
The Federal Communications Commission (FCC) has the power to regulate television broadcasts.
Advocates for more regulation (Parents Television Council and Mediawatch-UK, formerly the National
Viewers’ and Listeners’ Association) state that TV shows with violent acts, profanity, and sexual content
should be shown later at night when children most likely will not be watching. For example, many
Seinfeld episodes have sexual themes, and the show was not aired until 9:00 P.M., but now it’s shown at
all hours of the day. Sex and the City, Jersey Shore, and other shows with sexual content and violence
are also shown at all hours. However, advocates against regulation (National Coalition Against
Censorship) don’t want censorship at all, on the grounds that it violates free speech. They claim it’s up
to the parents to restrict viewing they don’t approve of.
1. How does TV influence societal values? (Consider that many children watch as many as five hours of
TV per day.)
Answers vary
2. Do TV shows that include sex and violence reflect religious and societal values?
Answers vary
3. Is it ethical and socially responsible to air TV shows with sexual content, profanity, and violence
during hours when children are watching?
Answers vary
4. Is it ethical and socially responsible to portray women as sex objects?
Answers vary
5. Should the FCC regulate television, and if so, how far should it go? Should it make networks tone
down the sex and violence, or take shows off the air?
Answers vary
3. Would you be willing to pay higher prices at stores, such as Walmart, so that more full-time
workers could replace part-time workers?
Answers vary
Join the Discussion 2–2: Sex, Profanity, and Violence
The Federal Communications Commission (FCC) has the power to regulate television broadcasts.
Advocates for more regulation (Parents Television Council and Mediawatch-UK, formerly the National
Viewers’ and Listeners’ Association) state that TV shows with violent acts, profanity, and sexual content
should be shown later at night when children most likely will not be watching. For example, many
Seinfeld episodes have sexual themes, and the show was not aired until 9:00 P.M., but now it’s shown at
all hours of the day. Sex and the City, Jersey Shore, and other shows with sexual content and violence
are also shown at all hours. However, advocates against regulation (National Coalition Against
Censorship) don’t want censorship at all, on the grounds that it violates free speech. They claim it’s up
to the parents to restrict viewing they don’t approve of.
1. How does TV influence societal values? (Consider that many children watch as many as five hours of
TV per day.)
Answers vary
2. Do TV shows that include sex and violence reflect religious and societal values?
Answers vary
3. Is it ethical and socially responsible to air TV shows with sexual content, profanity, and violence
during hours when children are watching?
Answers vary
4. Is it ethical and socially responsible to portray women as sex objects?
Answers vary
5. Should the FCC regulate television, and if so, how far should it go? Should it make networks tone
down the sex and violence, or take shows off the air?
Answers vary
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Lussier, Management Fundamentals, 7e
1
Answers to Questions in the Text
Chapter 3: Managing Diversity in a
Global Environment
WORK APPLICATION SAMPLE ANSWERS
Most of the answers are actual student answers or based on student answers. You may give these
answers as part of your lecture before, after, or in place of getting student answers.
3–1. Classify a business you work for or have researched as domestic, international, or
multinational. If the business is international or an MNC, list some of the countries in which it does
business.
I worked for McDonald’s, and it has restaurants all over the global village. The United States, all EU
countries listed in the text, and Japan are example countries.
3–2. Do you try to buy American products? Should you?
I don’t try to buy American. I look for the best product and price. No. Why should I buy American
when I can get a better deal?
3–3. Give an example of how a domestic company benefits from trade barriers.
If the government puts a barrier on a product, like a Samsung smart phone, it will most likely cost
more. This would give an advantage to Apple iPhones.
3–4. Would you be willing to pay more for the same product made domestically than abroad? For
example, if Nike made sneakers in America and sold them for $125 and made them abroad and
sold them for $100, which would you buy?
Heck no. I want the low price to save me money.
3–5. Select a business and identify how it uses global sourcing and/or importing and exporting.
I work for Bit Y supermarket and it imports produce from all over the world to have fresh stuff all
year long.
3–6. Select a business you buy from that has a global license or franchise.
I have an old Starter Lions football jacket that it had a license to use from the NFL.
3–7. Select a business you buy from that used contract manufacturing to make your product.
I have an iPhone that was made in China by Foxconn and Nike sneakers also made in China.
3–8. Select a business that uses strategic alliances, joint venture, and/or direct investment
globally.
1
Answers to Questions in the Text
Chapter 3: Managing Diversity in a
Global Environment
WORK APPLICATION SAMPLE ANSWERS
Most of the answers are actual student answers or based on student answers. You may give these
answers as part of your lecture before, after, or in place of getting student answers.
3–1. Classify a business you work for or have researched as domestic, international, or
multinational. If the business is international or an MNC, list some of the countries in which it does
business.
I worked for McDonald’s, and it has restaurants all over the global village. The United States, all EU
countries listed in the text, and Japan are example countries.
3–2. Do you try to buy American products? Should you?
I don’t try to buy American. I look for the best product and price. No. Why should I buy American
when I can get a better deal?
3–3. Give an example of how a domestic company benefits from trade barriers.
If the government puts a barrier on a product, like a Samsung smart phone, it will most likely cost
more. This would give an advantage to Apple iPhones.
3–4. Would you be willing to pay more for the same product made domestically than abroad? For
example, if Nike made sneakers in America and sold them for $125 and made them abroad and
sold them for $100, which would you buy?
Heck no. I want the low price to save me money.
3–5. Select a business and identify how it uses global sourcing and/or importing and exporting.
I work for Bit Y supermarket and it imports produce from all over the world to have fresh stuff all
year long.
3–6. Select a business you buy from that has a global license or franchise.
I have an old Starter Lions football jacket that it had a license to use from the NFL.
3–7. Select a business you buy from that used contract manufacturing to make your product.
I have an iPhone that was made in China by Foxconn and Nike sneakers also made in China.
3–8. Select a business that uses strategic alliances, joint venture, and/or direct investment
globally.
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Lussier, Management Fundamentals, 7e
2
I have an iPhone that was made in China by Foxconn and Nike sneakers also made in China.
3–9 Select a company and identify as many of its global business practices as you can.
Amazon.com uses global sourcing of its books and other items it sells by having UPS deliver them
globally. It also does some importing and exporting of the things its sells. It has its e-readers made by
Foxconn. Amazon also has direct investments in subsidiaries in other countries.
3–10. Explain how diversity is important to your current or past workplace.
I’d say around 1/3 of our customers at Anthony Pizza are Black and Hispanic. Without their business,
the place most likely would not be profitable.
3–11. First state the types of diversity where you work(ed). Next, describe how it has affected you
personally by being discriminated against, including being unfairly treated through being criticized
or excluded in some way for being different in some way from the others.
In my department we have nine people. Ages range from around 35 to 65, there are seven men and
two women, everyone is White, without noticeable disabilities, one guy is Jewish and I think the rest
are Christian, and no one has come out as a homosexual. I’ve been discriminated against because of
my knowledge and skills. I’m much more productive than the other employees, and it is not
appreciated; I’ve had to put up with aggravation because of it. Others have been given more
resources from our department budget. A couple of them are jealous and hardly ever talk to me.
3–12 Describe a company’s policies and practices for promoting diversity, preferably a business
you work(ed) for.
In my company we do yard work, and the majority of the employees are of minority groups, mostly
Hispanics. The owner hires the best potential workers, but if they don’t work hard, they get fired
regardless of race.
3–13. Give an example of cultural diversity you encountered, preferably at work.
I work in a U.S. factory. We have many Hispanics working there. Some can hardly speak English, so
the diversity in language makes it harder to work with them. To help adapt, most of the supervisors
can speak both English and Spanish, and they translate when necessary.
3–14. How do you feel about taking an international assignment? What countries would be more
appealing to you?
I’d like to go one of the major European countries, especially England because they speak English
and I could get to see lots of countries from there. Because China is so important internationally, I’d
think about going there if it would definitely help me advance in my career
REVIEW QUESTION ANSWERS
3–1. How are businesses classified in the global village?
2
I have an iPhone that was made in China by Foxconn and Nike sneakers also made in China.
3–9 Select a company and identify as many of its global business practices as you can.
Amazon.com uses global sourcing of its books and other items it sells by having UPS deliver them
globally. It also does some importing and exporting of the things its sells. It has its e-readers made by
Foxconn. Amazon also has direct investments in subsidiaries in other countries.
3–10. Explain how diversity is important to your current or past workplace.
I’d say around 1/3 of our customers at Anthony Pizza are Black and Hispanic. Without their business,
the place most likely would not be profitable.
3–11. First state the types of diversity where you work(ed). Next, describe how it has affected you
personally by being discriminated against, including being unfairly treated through being criticized
or excluded in some way for being different in some way from the others.
In my department we have nine people. Ages range from around 35 to 65, there are seven men and
two women, everyone is White, without noticeable disabilities, one guy is Jewish and I think the rest
are Christian, and no one has come out as a homosexual. I’ve been discriminated against because of
my knowledge and skills. I’m much more productive than the other employees, and it is not
appreciated; I’ve had to put up with aggravation because of it. Others have been given more
resources from our department budget. A couple of them are jealous and hardly ever talk to me.
3–12 Describe a company’s policies and practices for promoting diversity, preferably a business
you work(ed) for.
In my company we do yard work, and the majority of the employees are of minority groups, mostly
Hispanics. The owner hires the best potential workers, but if they don’t work hard, they get fired
regardless of race.
3–13. Give an example of cultural diversity you encountered, preferably at work.
I work in a U.S. factory. We have many Hispanics working there. Some can hardly speak English, so
the diversity in language makes it harder to work with them. To help adapt, most of the supervisors
can speak both English and Spanish, and they translate when necessary.
3–14. How do you feel about taking an international assignment? What countries would be more
appealing to you?
I’d like to go one of the major European countries, especially England because they speak English
and I could get to see lots of countries from there. Because China is so important internationally, I’d
think about going there if it would definitely help me advance in my career
REVIEW QUESTION ANSWERS
3–1. How are businesses classified in the global village?
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Lussier, Management Fundamentals, 7e
3
Businesses in the global village are classified as domestic businesses, international businesses, or
multinational corporations (MNCs).
3–2. What are the four trade barriers?
The four trade barriers include embargos, quotas, subsides, and tariffs.
3–3. What is the role of the World Trade Organization (WTO)?
The primary role is to facilitate free global trade by setting and enforcing trade rules and agreements
among its members.
3–4. What are the six major trade agreements?
The six major trade agreements are NAFTA, CAFTA-DR, UNASUR, EU, ASEAN, and APEC.
3–5. Which country has the foreign trade advantage based on exchange rates?
The country with the weak currency has the advantage in foreign trade.
3–6. What is the difference between a license and a franchise?
In licensing, a licensor agrees to give a licensee the right to make its products or services or use its
intellectual property for a royalty. In franchising, the franchisor licenses the entire business to the
franchisee for a fee and royalties. With a license, you can essentially manage and run your business
any way you want too. But with a franchise, you have to run the business the way the franchisor
wants you to.
3–7. What is the difference among a strategic alliance, joint venture, and direct investment?
A strategic alliance is an agreement to share resources that does not necessarily involve creating a
new company. A joint venture is created when two or more firms share ownership of a new
company. Direct investment is building or buying operating facilities in a foreign country. So a
strategic alliance is generally two companies helping each other, a joint venture is shared ownership
of a new company, and a direct investment is generally considered wholly owning a subsidiary in
another country.
3–8. What do international and multinational companies have in common?
They both should think globally but act locally by adapting products and services to the needs of the
local marketplace.
3–9. If you were to start your own small business, would you most likely use contracting, strategic
alliances, joint ventures or direct investment?
As discussed, small businesses are commonly international and are more likely to use contracting or
a strategic alliance. They most likely don’t have the money to make a joint venture or direct
investment.
3–10. What is the difference between diversity and affirmative action?
3
Businesses in the global village are classified as domestic businesses, international businesses, or
multinational corporations (MNCs).
3–2. What are the four trade barriers?
The four trade barriers include embargos, quotas, subsides, and tariffs.
3–3. What is the role of the World Trade Organization (WTO)?
The primary role is to facilitate free global trade by setting and enforcing trade rules and agreements
among its members.
3–4. What are the six major trade agreements?
The six major trade agreements are NAFTA, CAFTA-DR, UNASUR, EU, ASEAN, and APEC.
3–5. Which country has the foreign trade advantage based on exchange rates?
The country with the weak currency has the advantage in foreign trade.
3–6. What is the difference between a license and a franchise?
In licensing, a licensor agrees to give a licensee the right to make its products or services or use its
intellectual property for a royalty. In franchising, the franchisor licenses the entire business to the
franchisee for a fee and royalties. With a license, you can essentially manage and run your business
any way you want too. But with a franchise, you have to run the business the way the franchisor
wants you to.
3–7. What is the difference among a strategic alliance, joint venture, and direct investment?
A strategic alliance is an agreement to share resources that does not necessarily involve creating a
new company. A joint venture is created when two or more firms share ownership of a new
company. Direct investment is building or buying operating facilities in a foreign country. So a
strategic alliance is generally two companies helping each other, a joint venture is shared ownership
of a new company, and a direct investment is generally considered wholly owning a subsidiary in
another country.
3–8. What do international and multinational companies have in common?
They both should think globally but act locally by adapting products and services to the needs of the
local marketplace.
3–9. If you were to start your own small business, would you most likely use contracting, strategic
alliances, joint ventures or direct investment?
As discussed, small businesses are commonly international and are more likely to use contracting or
a strategic alliance. They most likely don’t have the money to make a joint venture or direct
investment.
3–10. What is the difference between diversity and affirmative action?
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Lussier, Management Fundamentals, 7e
4
Affirmative action is purposeful steps to create employment opportunities for minorities and
women, whereas diversity is broader in scope as it doesn’t focuses simply on not discriminating
against diverse groups and helping only some of them.
3–11. What is the glass ceiling?
The glass ceiling is the invisible barrier that prevents women and minorities from advancing to the
top jobs in organizations.
3–12. When dealing with people with disabilities, what should be the focus?
The focus should be on the abilities people with disabilities have and matching them to jobs they are
qualified to do.
3–13. What are three practices used to promote diversity?
The three practices are diversity training, mentoring, and diversity network groups.
3–14. What are the five dimensions of Hofstede’s Cultural Diversity?
Power distance inequality versus power equality, individualism versus collectivism, assertiveness
versus nurturing, uncertainty avoidance or acceptance, and long-term versus short-term orientation
3–15. What is GLOBE?
GLOBE stands for Global Leadership and Organizational Behavior Effectiveness, which is an ongoing
cross-cultural investigation of leadership and national culture.
3–16. What are the nine dimensions of Project GLOBE?
Assertiveness, future orientation, gender differences, uncertainty avoidance, power distance,
societal collectivism, in-group collectivism, performance orientation, and humane orientation.
COMMUNICATION SKILLS ANSWERS
3–1. How does globalization affect your life and that of your family and friends?
Answers will vary.
3–2. Should people in the United States make an effort to buy products made in America? If so,
how should “made in America” be defined?
Answers will vary.
3–3. Should your home country drop all or some of its trade barriers?
Answers will vary, but the trend is toward free trade.
3–4. Is the North American Free Trade Agreement (NAFTA) of more benefit or harm to the United
States? Why?
4
Affirmative action is purposeful steps to create employment opportunities for minorities and
women, whereas diversity is broader in scope as it doesn’t focuses simply on not discriminating
against diverse groups and helping only some of them.
3–11. What is the glass ceiling?
The glass ceiling is the invisible barrier that prevents women and minorities from advancing to the
top jobs in organizations.
3–12. When dealing with people with disabilities, what should be the focus?
The focus should be on the abilities people with disabilities have and matching them to jobs they are
qualified to do.
3–13. What are three practices used to promote diversity?
The three practices are diversity training, mentoring, and diversity network groups.
3–14. What are the five dimensions of Hofstede’s Cultural Diversity?
Power distance inequality versus power equality, individualism versus collectivism, assertiveness
versus nurturing, uncertainty avoidance or acceptance, and long-term versus short-term orientation
3–15. What is GLOBE?
GLOBE stands for Global Leadership and Organizational Behavior Effectiveness, which is an ongoing
cross-cultural investigation of leadership and national culture.
3–16. What are the nine dimensions of Project GLOBE?
Assertiveness, future orientation, gender differences, uncertainty avoidance, power distance,
societal collectivism, in-group collectivism, performance orientation, and humane orientation.
COMMUNICATION SKILLS ANSWERS
3–1. How does globalization affect your life and that of your family and friends?
Answers will vary.
3–2. Should people in the United States make an effort to buy products made in America? If so,
how should “made in America” be defined?
Answers will vary.
3–3. Should your home country drop all or some of its trade barriers?
Answers will vary, but the trend is toward free trade.
3–4. Is the North American Free Trade Agreement (NAFTA) of more benefit or harm to the United
States? Why?
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Answers will vary, but the text does say benefits are flowing back to the United States.
3–5. Should there be one global trade agreement rather than the six major agreements?
Answers will vary.
3–6. Should countries with a trade deficit create barriers to trade to eliminate the deficit?
Trade barriers tend to lead to retaliation by the other country, and running a trade deficit can be
beneficial to the country.
3–7. Overall, are the effects of foreign trade more positive or negative for your home country?
Answers will vary, but as stated in the textbook, it should be positive for most people. However, if
people lost their jobs to global outsourcing, they will most likely think it is negative for them.
3–8. Is it too difficult and time consuming to engage in global sourcing?
Not really. With the Internet, searching with technology is worth it because you can find the best
deal globally.
3–9. Are smaller international companies at a disadvantage when competing with large MNCs?
Answers will vary, but generally the answer is yes and no. Internationals don’t have the finances, but
they can create very profitable niches in which to compete. Also, many of them provide products
and services to MNCs, so they are actually cooperating or doing business with them rather than
competing directly against MNCs.
3–10. How does diversity effect you personally? Do you really value diversity?
Answers will vary.
3–11. What experience have you had with each of the diverse groups?
I’ve had to work with people of all ages, both males and females but mostly males, my best friend at
work is a different race than I am, and there is a guy in the office in a wheelchair that I don’t actually
work with. I’m not sure if anyone is religious around here. But the managers here are college grads
with experience, whereas their employees don’t have college educations, but several of have a lot
more experience than the managers. Being in maintenance, we go to all the departments in the
company when they need us.
3–12. How can you improve your awareness and empathy for diverse groups?
Answers will vary, but completing Self-Assessments 3–2 and 3–3 can help to identify areas that need
improving, which can lead to a plan for change.
3–13. Identify mentors you have had in your life (relatives, friends, teachers, coaches, managers)
and how they helped you to succeed. Also, will you seek out a mentor(s) to help you advance in
your career?
5
Answers will vary, but the text does say benefits are flowing back to the United States.
3–5. Should there be one global trade agreement rather than the six major agreements?
Answers will vary.
3–6. Should countries with a trade deficit create barriers to trade to eliminate the deficit?
Trade barriers tend to lead to retaliation by the other country, and running a trade deficit can be
beneficial to the country.
3–7. Overall, are the effects of foreign trade more positive or negative for your home country?
Answers will vary, but as stated in the textbook, it should be positive for most people. However, if
people lost their jobs to global outsourcing, they will most likely think it is negative for them.
3–8. Is it too difficult and time consuming to engage in global sourcing?
Not really. With the Internet, searching with technology is worth it because you can find the best
deal globally.
3–9. Are smaller international companies at a disadvantage when competing with large MNCs?
Answers will vary, but generally the answer is yes and no. Internationals don’t have the finances, but
they can create very profitable niches in which to compete. Also, many of them provide products
and services to MNCs, so they are actually cooperating or doing business with them rather than
competing directly against MNCs.
3–10. How does diversity effect you personally? Do you really value diversity?
Answers will vary.
3–11. What experience have you had with each of the diverse groups?
I’ve had to work with people of all ages, both males and females but mostly males, my best friend at
work is a different race than I am, and there is a guy in the office in a wheelchair that I don’t actually
work with. I’m not sure if anyone is religious around here. But the managers here are college grads
with experience, whereas their employees don’t have college educations, but several of have a lot
more experience than the managers. Being in maintenance, we go to all the departments in the
company when they need us.
3–12. How can you improve your awareness and empathy for diverse groups?
Answers will vary, but completing Self-Assessments 3–2 and 3–3 can help to identify areas that need
improving, which can lead to a plan for change.
3–13. Identify mentors you have had in your life (relatives, friends, teachers, coaches, managers)
and how they helped you to succeed. Also, will you seek out a mentor(s) to help you advance in
your career?
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Answers will vary, but hopefully students have had positive mentor experiences and will seek them
in the future.
3–14. Should expatriates be given global cultural diversity training, and should their families get
training too?
At the cost of a $1 million for a three-year international assignment, and with family adjustment to
the new foreign culture being the most important factor in determining the success or failure of the
international assignment, it seems like a good investment to offer training to the expatriate and
family.
APPLYING THE CONCEPT ANSWERS
Applying the Concept 3–1:Global Practices
Identify each practice as more likely to be used by large or small global companies:
A. large MNCs
B. small international companies
1. Companies that develop a product in one country and then bring the product to other countries.
B. Small international companies. They do not usually have the resources to introduce/market the
product globally.
2. Companies that only import and/or export to operate globally.
B. Small international companies. They don’t have the resources to have their own facilities in other
countries, so they tend to import and export.
3. Companies that have foreign nationals among their top-level managers.
A. Large MNCs. They have foreign nationals running direct investment facilities.
4. Companies that make their products in other countries.
A. Large MNCs. Small companies do not have the resources.
5. Companies that develop the latest technology through R&D.
A. Large MNCs. Small companies usually cannot afford to invest in R&D, so they quickly copy MNCs.
Applying the Concept 3–2:Forms of Global Business
Identify which activity or form of global business is described in each statement.
A. global sourcing
B. importing and exporting
C. licensing and franchising
D. contracting
E. strategic alliance and joint venture
F. direct investment
6. Springfield College offers a master’s degree program in Israel at the Health and Behavioral
Sciences College, which provides the facilities and administrative support.
6
Answers will vary, but hopefully students have had positive mentor experiences and will seek them
in the future.
3–14. Should expatriates be given global cultural diversity training, and should their families get
training too?
At the cost of a $1 million for a three-year international assignment, and with family adjustment to
the new foreign culture being the most important factor in determining the success or failure of the
international assignment, it seems like a good investment to offer training to the expatriate and
family.
APPLYING THE CONCEPT ANSWERS
Applying the Concept 3–1:Global Practices
Identify each practice as more likely to be used by large or small global companies:
A. large MNCs
B. small international companies
1. Companies that develop a product in one country and then bring the product to other countries.
B. Small international companies. They do not usually have the resources to introduce/market the
product globally.
2. Companies that only import and/or export to operate globally.
B. Small international companies. They don’t have the resources to have their own facilities in other
countries, so they tend to import and export.
3. Companies that have foreign nationals among their top-level managers.
A. Large MNCs. They have foreign nationals running direct investment facilities.
4. Companies that make their products in other countries.
A. Large MNCs. Small companies do not have the resources.
5. Companies that develop the latest technology through R&D.
A. Large MNCs. Small companies usually cannot afford to invest in R&D, so they quickly copy MNCs.
Applying the Concept 3–2:Forms of Global Business
Identify which activity or form of global business is described in each statement.
A. global sourcing
B. importing and exporting
C. licensing and franchising
D. contracting
E. strategic alliance and joint venture
F. direct investment
6. Springfield College offers a master’s degree program in Israel at the Health and Behavioral
Sciences College, which provides the facilities and administrative support.
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7
E. Joint venture and Strategic Alliances. This is a strategic alliance, which is a form of partnership
joint venture even though a new company is not created.
7. Philips in France makes TVs using speakers from Japan.
A. Global sourcing. This is using foreign resources/parts as part of its final product.
8. Tires R Us in the United States buys tires from Bridgestone in Japan for retail sale.
B. Exporting/Importing. Buying foreign goods for sale is importing.
9. Chinese Alibaba buys a warehouse in America to distribute online orders in the United States.
F. Direct investment. Buying a building is a direct investment.
10. The American Children’s Television Workshop gives a Chinese company the right to make its
Sesame Street character puppets.
C. Licensing. Licensing involves allowing another country the right to use an asset.
11. Whirlpool makes its appliances in its factory in Russia.
F. Direct investment. This is a foreign subsidiary.
12. Dell assembles its computers in the United States and sells them online to people globally.
B. Exporting/Importing. Selling computers in another country and shipping them is exporting.
13. Costco has a Canadian company make some of its Kirkland brand items for sale in its U.S.
stores.
D. Contracting. The foreign firm only manufactures the product.
14. Wilson Sporting Goods buys the rubber for tennis balls from Brazil.
A. Global sourcing. This is using foreign resources/materials in a local product.
15. McDonald’s makes a deal with an Italian businessperson to open a McDonald’s in Rome.
C. Licensing and Franchising. This is giving a franchise.
Applying the Concept 3–3: GLOBE Dimensions
Identify the dimension of cultural diversity exemplified by each statement.
A. assertiveness
B. future orientation
C. gender differences
D. uncertainty avoidance
E. power distance
F. societal collectivism
G. in-group collectivism
H. performance orientation
I. humane orientation
16. The people in this country have one of the highest savings rates in the world.
F. Societal collectivism. The preferred sports are team sports rather than individual sports.
17. Managers throughout organizations in this country focus on getting the job done through
teamwork.
7
E. Joint venture and Strategic Alliances. This is a strategic alliance, which is a form of partnership
joint venture even though a new company is not created.
7. Philips in France makes TVs using speakers from Japan.
A. Global sourcing. This is using foreign resources/parts as part of its final product.
8. Tires R Us in the United States buys tires from Bridgestone in Japan for retail sale.
B. Exporting/Importing. Buying foreign goods for sale is importing.
9. Chinese Alibaba buys a warehouse in America to distribute online orders in the United States.
F. Direct investment. Buying a building is a direct investment.
10. The American Children’s Television Workshop gives a Chinese company the right to make its
Sesame Street character puppets.
C. Licensing. Licensing involves allowing another country the right to use an asset.
11. Whirlpool makes its appliances in its factory in Russia.
F. Direct investment. This is a foreign subsidiary.
12. Dell assembles its computers in the United States and sells them online to people globally.
B. Exporting/Importing. Selling computers in another country and shipping them is exporting.
13. Costco has a Canadian company make some of its Kirkland brand items for sale in its U.S.
stores.
D. Contracting. The foreign firm only manufactures the product.
14. Wilson Sporting Goods buys the rubber for tennis balls from Brazil.
A. Global sourcing. This is using foreign resources/materials in a local product.
15. McDonald’s makes a deal with an Italian businessperson to open a McDonald’s in Rome.
C. Licensing and Franchising. This is giving a franchise.
Applying the Concept 3–3: GLOBE Dimensions
Identify the dimension of cultural diversity exemplified by each statement.
A. assertiveness
B. future orientation
C. gender differences
D. uncertainty avoidance
E. power distance
F. societal collectivism
G. in-group collectivism
H. performance orientation
I. humane orientation
16. The people in this country have one of the highest savings rates in the world.
F. Societal collectivism. The preferred sports are team sports rather than individual sports.
17. Managers throughout organizations in this country focus on getting the job done through
teamwork.
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8
E. Power distance. Status symbols represent and show power distance.
18. People in this country are known to be difficult to negotiate with.
I. Humane orientation. Providing poor working conditions shows low caring toward people.
19. In some companies in this country, the male managers go around kissing the female
employees good morning; and the women get the coffee for the male managers.
D. Uncertainty avoidance. They fear the uncertainty and uncomfortable feeling change brings.
20. The people in this country follow the football/soccer team closely as they take great
satisfaction from watching their team in the World Cup.
H. Performance orientation. The statement illustrates high achievement and material success. You
cannot tell if the incentives are individual or collective rewards.
21. Managers place great importance on status symbols such as having the executive dining room,
reserved parking spaces, and big offices.
E. Power distance. Status symbols like separate dinning and parking represent and show power
distance.
22. Managers don’t really care about the safety of their employees and provide poor working
conditions.
I. Humane orientation. Providing poor working conditions shows low caring toward people.
23. Employees get nervous and stressed when they even hear that changes are coming.
D. Uncertainty avoidance. They fear the uncertainty and uncomfortable feeling change brings.
24. Employees focus on constant small changes to make the products and processes better.
H. Performance orientation. The statement illustrates striving for improvements.
JOIN THE DISCUSSION ANSWERS
Join the Discussion 3–1: Buy American
You most likely have heard the slogan “Buy American.” Many labor unions urge Americans to buy
products made in the United States, because that helps retain jobs for American workers. On the
other hand, some Americans ask why they should buy American products if they cost more or their
quality or style is not as good as that of foreign-made products. But as you’ve seen, it isn’t always
easy for consumers to know the country of ownership of many products they buy.
1. Is it ethical and socially responsible to ask people to buy American?
Answers vary
2. Is it ethical and socially responsible to buy foreign products?
Answers vary
Join the Discussion 3–2: File Sharing
8
E. Power distance. Status symbols represent and show power distance.
18. People in this country are known to be difficult to negotiate with.
I. Humane orientation. Providing poor working conditions shows low caring toward people.
19. In some companies in this country, the male managers go around kissing the female
employees good morning; and the women get the coffee for the male managers.
D. Uncertainty avoidance. They fear the uncertainty and uncomfortable feeling change brings.
20. The people in this country follow the football/soccer team closely as they take great
satisfaction from watching their team in the World Cup.
H. Performance orientation. The statement illustrates high achievement and material success. You
cannot tell if the incentives are individual or collective rewards.
21. Managers place great importance on status symbols such as having the executive dining room,
reserved parking spaces, and big offices.
E. Power distance. Status symbols like separate dinning and parking represent and show power
distance.
22. Managers don’t really care about the safety of their employees and provide poor working
conditions.
I. Humane orientation. Providing poor working conditions shows low caring toward people.
23. Employees get nervous and stressed when they even hear that changes are coming.
D. Uncertainty avoidance. They fear the uncertainty and uncomfortable feeling change brings.
24. Employees focus on constant small changes to make the products and processes better.
H. Performance orientation. The statement illustrates striving for improvements.
JOIN THE DISCUSSION ANSWERS
Join the Discussion 3–1: Buy American
You most likely have heard the slogan “Buy American.” Many labor unions urge Americans to buy
products made in the United States, because that helps retain jobs for American workers. On the
other hand, some Americans ask why they should buy American products if they cost more or their
quality or style is not as good as that of foreign-made products. But as you’ve seen, it isn’t always
easy for consumers to know the country of ownership of many products they buy.
1. Is it ethical and socially responsible to ask people to buy American?
Answers vary
2. Is it ethical and socially responsible to buy foreign products?
Answers vary
Join the Discussion 3–2: File Sharing
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9
Since the early 2000s, some peer-to-peer (P2P) file-sharing networks and services have been
targeted by music companies and an industry watch group, the Recording Industry Association of
America (RIAA), which represents musicians, for copyright infringement and shut down. The music
companies complain that they are losing profits and that musicians are losing royalties as people
download music for free, which violates copyright law. The RIAA also expanded into lawsuits against
individuals. Movies, software, and other copyright material are also being illegally copied through
file sharing (piracy).
According to the International Federation of the Phonographic Industry, piracy is a real problem, as
95% of all music downloads violate copyrights. (1) In many countries, because some governments
don’t have the desire or resources to enforce copyright laws, some governments even resist allowing
companies to take legal action against companies and individuals.
1. Is it ethical and socially responsible for file-sharing companies to give people the means to
download music, movies, or software for free?
Answers vary
2. Is it ethical and socially responsible for people to download music, movies, or software for free,
which prevents recording, film, or software companies and artists from getting any royalties?
Answers vary
3. Is it ethical and socially responsible for countries to ignore and even resist enforcing copyright
laws? Should all countries enforce copyright laws?
Answers vary
Join the Discussion 3–3: Speaking English
The United States was once known as the “melting pot,” as people from all over the world came to
the country and adjusted to its culture. In the past, generally, immigrants had to learn English to get
a job. Today, however, many organizations hire people who can’t speak English, and they use
translators and have policies written in multiple languages for these employees. Government
agencies at the federal, state, and local levels are also providing translators and written materials in
other languages.
1. Why are some organizations no longer requiring workers to speak English?
Answers vary
2. Should a worker be required to be able to speak English to get a job in the United States?
Answers vary
3. Is it ethical and socially responsible to (or not to) hire people who can’t speak English and to
provide translators and policies written in multiple languages?
Answers vary
Join the Discussion 3–4: Bribes
9
Since the early 2000s, some peer-to-peer (P2P) file-sharing networks and services have been
targeted by music companies and an industry watch group, the Recording Industry Association of
America (RIAA), which represents musicians, for copyright infringement and shut down. The music
companies complain that they are losing profits and that musicians are losing royalties as people
download music for free, which violates copyright law. The RIAA also expanded into lawsuits against
individuals. Movies, software, and other copyright material are also being illegally copied through
file sharing (piracy).
According to the International Federation of the Phonographic Industry, piracy is a real problem, as
95% of all music downloads violate copyrights. (1) In many countries, because some governments
don’t have the desire or resources to enforce copyright laws, some governments even resist allowing
companies to take legal action against companies and individuals.
1. Is it ethical and socially responsible for file-sharing companies to give people the means to
download music, movies, or software for free?
Answers vary
2. Is it ethical and socially responsible for people to download music, movies, or software for free,
which prevents recording, film, or software companies and artists from getting any royalties?
Answers vary
3. Is it ethical and socially responsible for countries to ignore and even resist enforcing copyright
laws? Should all countries enforce copyright laws?
Answers vary
Join the Discussion 3–3: Speaking English
The United States was once known as the “melting pot,” as people from all over the world came to
the country and adjusted to its culture. In the past, generally, immigrants had to learn English to get
a job. Today, however, many organizations hire people who can’t speak English, and they use
translators and have policies written in multiple languages for these employees. Government
agencies at the federal, state, and local levels are also providing translators and written materials in
other languages.
1. Why are some organizations no longer requiring workers to speak English?
Answers vary
2. Should a worker be required to be able to speak English to get a job in the United States?
Answers vary
3. Is it ethical and socially responsible to (or not to) hire people who can’t speak English and to
provide translators and policies written in multiple languages?
Answers vary
Join the Discussion 3–4: Bribes
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10
An American businessperson working in a foreign country complained to a local telephone manager
that the technician showed up and asked for a bribe before installing the phone. The businessperson
refused, so the telephone worker left without installing the phone. The telephone company manager
told the businessperson that the matter would be investigated, for a fee (bribe).
1. Is it ethical and socially responsible to pay bribes?
Answers vary
2. Should the businessperson have paid the bribe to get the phone installed?
Answers vary
10
An American businessperson working in a foreign country complained to a local telephone manager
that the technician showed up and asked for a bribe before installing the phone. The businessperson
refused, so the telephone worker left without installing the phone. The telephone company manager
told the businessperson that the matter would be investigated, for a fee (bribe).
1. Is it ethical and socially responsible to pay bribes?
Answers vary
2. Should the businessperson have paid the bribe to get the phone installed?
Answers vary
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Lussier, Management Fundamentals, 7e
1
Answers to Questions in the Text
Chapter 4: Creative Problem Solving
and Decision Making
WORK APPLICATION SAMPLE ANSWERS
Most of the answers are actual student answers or based on student answers. You may give
these answers as part of your lecture before, after, or in place of getting student answers.
4–1. Describe a situation in which a job objective was not met. Identify the problem
created and the decision made in regard to this problem.
I was working on an order to be shipped to a customer that day by mail. However, the order
was not ready on time for the 3:00 p.m. mail pickup. At around 4:00 p.m. it was ready, so
the manager told me to stop working and drive to the post office so that the order would go
out that night.
4–2. Give an example of a poor decision made by a manager performing a management
function. Explain the management function and the problem created by the poor
decision.
Bill came to work around 5 minutes late one day. The manager decided not to say anything to him,
rather than to use the controlling function. Since the manager did not say anything, the next day Bill
and Karen were both late. They figured that the boss wouldn’t say anything to them. However, the
boss told them both in front of the group not to be late again.
4–3. Give an example of a programmed and a nonprogrammed decision faced by an
organization you work for or have worked for, and describe the decision condition in
each case.
A nonprogrammed decision at Costco Wholesale where I work was when it put in new checkout
counters with computers that scan the products. Before the new scanners, one person would read
off the numbers while another punched them into the cash register. As a stock person, I walk around
and made programmed decisions by determining what products need to be placed on the shelves.
4–4. Give an example of a group decision made in an organization you work for or have
worked for. Identify the advantages and disadvantages encountered by the group.
We had a meeting to determine where the company picnic would be, what we would eat, and the
activities that would take place. The group did not satisfice, the women tended to dominate, and
groupthink was not a problem. I’d say that the major disadvantage was the time wasted. I don’t
think the decision was any better; a simple, small committee could have done the whole thing just as
well. On the other hand, there were more alternatives offered and people understood the decision.
It’s hard to say if people were more committed and motivated because the picnic is on company
time and you have to go anyway.
4–5. Define a problem in an organization you work for or have worked for. Be sure to
clearly distinguish the symptoms from the causes of the problem.
1
Answers to Questions in the Text
Chapter 4: Creative Problem Solving
and Decision Making
WORK APPLICATION SAMPLE ANSWERS
Most of the answers are actual student answers or based on student answers. You may give
these answers as part of your lecture before, after, or in place of getting student answers.
4–1. Describe a situation in which a job objective was not met. Identify the problem
created and the decision made in regard to this problem.
I was working on an order to be shipped to a customer that day by mail. However, the order
was not ready on time for the 3:00 p.m. mail pickup. At around 4:00 p.m. it was ready, so
the manager told me to stop working and drive to the post office so that the order would go
out that night.
4–2. Give an example of a poor decision made by a manager performing a management
function. Explain the management function and the problem created by the poor
decision.
Bill came to work around 5 minutes late one day. The manager decided not to say anything to him,
rather than to use the controlling function. Since the manager did not say anything, the next day Bill
and Karen were both late. They figured that the boss wouldn’t say anything to them. However, the
boss told them both in front of the group not to be late again.
4–3. Give an example of a programmed and a nonprogrammed decision faced by an
organization you work for or have worked for, and describe the decision condition in
each case.
A nonprogrammed decision at Costco Wholesale where I work was when it put in new checkout
counters with computers that scan the products. Before the new scanners, one person would read
off the numbers while another punched them into the cash register. As a stock person, I walk around
and made programmed decisions by determining what products need to be placed on the shelves.
4–4. Give an example of a group decision made in an organization you work for or have
worked for. Identify the advantages and disadvantages encountered by the group.
We had a meeting to determine where the company picnic would be, what we would eat, and the
activities that would take place. The group did not satisfice, the women tended to dominate, and
groupthink was not a problem. I’d say that the major disadvantage was the time wasted. I don’t
think the decision was any better; a simple, small committee could have done the whole thing just as
well. On the other hand, there were more alternatives offered and people understood the decision.
It’s hard to say if people were more committed and motivated because the picnic is on company
time and you have to go anyway.
4–5. Define a problem in an organization you work for or have worked for. Be sure to
clearly distinguish the symptoms from the causes of the problem.
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Lussier, Management Fundamentals, 7e
2
At our supermarket, sales are down. This is a symptom. The cause of the problem is the new
supermarket that moved in across the street from us.
4–6. Identify some of the qualification criteria (college degree, years of experience, etc.)
for jobs at an organization you work for or have worked for. Distinguish any “must”
and “want” criteria.
I work at Figures and Fitness exercise salon. To be an exercise instructor, you must be a club
member. Figures and Fitness always recruits from the members. The manager looks for members
who are in excellent condition, are capable of leading efficient exercise classes, enjoy working out,
and who interact well with other members—“must” criteria. The manager wants the instructors to
be attractive—“want” criteria.
4–7. Give an example of how you or someone else solved a problem using the stages in
the creative process. Be sure to list the steps and note whether illumination came during
incubation or while working on the problem.
I’m a member of the parish council at Holy Cross Church.
Step 1. Preparation—We were working on developing an organization chart so committee
members would understand their responsibilities and working relationships. We did not
finalize the chart at the meeting; instead, we were asked to think about it for the next
meeting.
Step 2. Incubation and illumination—When I was driving home listening to the radio
(incubation), how to better organize the chart came to me (illumination). When I got
home, I made a revised chart.
Step 3. Evaluation—At the next meeting, I presented my new chart to the group. During
the discussion, a few members recommended minor changes, which were made, and the
final chart was accepted.
4–8. Give examples of organizational problems for which brainstorming, nominal
grouping, or consensus mapping would be appropriate techniques.
The Gap management is always concerned about getting more sales. Displays are considered a
primary source for increasing sales. I think the manager could have a brainstorming session with
employees to try to come up with some ideas for more creative displays.
4–9. Give examples from an organization you work for or have worked for of decisions
that might appropriately be analyzed using the quantitative techniques of break-even
analysis, capital budgeting, linear programming, queuing theory, and probability
theory.
McDonald’s probably uses queuing theory to determine the number of checkout stations for the
restaurant and linear programming to figure out how to set up the restaurant to optimize fast-food
productivity.
4–10. Give examples from an organization where you work or have worked of decisions
that might appropriately be analyzed using the Kepner-Tregoe method and cost-benefit
analysis.
2
At our supermarket, sales are down. This is a symptom. The cause of the problem is the new
supermarket that moved in across the street from us.
4–6. Identify some of the qualification criteria (college degree, years of experience, etc.)
for jobs at an organization you work for or have worked for. Distinguish any “must”
and “want” criteria.
I work at Figures and Fitness exercise salon. To be an exercise instructor, you must be a club
member. Figures and Fitness always recruits from the members. The manager looks for members
who are in excellent condition, are capable of leading efficient exercise classes, enjoy working out,
and who interact well with other members—“must” criteria. The manager wants the instructors to
be attractive—“want” criteria.
4–7. Give an example of how you or someone else solved a problem using the stages in
the creative process. Be sure to list the steps and note whether illumination came during
incubation or while working on the problem.
I’m a member of the parish council at Holy Cross Church.
Step 1. Preparation—We were working on developing an organization chart so committee
members would understand their responsibilities and working relationships. We did not
finalize the chart at the meeting; instead, we were asked to think about it for the next
meeting.
Step 2. Incubation and illumination—When I was driving home listening to the radio
(incubation), how to better organize the chart came to me (illumination). When I got
home, I made a revised chart.
Step 3. Evaluation—At the next meeting, I presented my new chart to the group. During
the discussion, a few members recommended minor changes, which were made, and the
final chart was accepted.
4–8. Give examples of organizational problems for which brainstorming, nominal
grouping, or consensus mapping would be appropriate techniques.
The Gap management is always concerned about getting more sales. Displays are considered a
primary source for increasing sales. I think the manager could have a brainstorming session with
employees to try to come up with some ideas for more creative displays.
4–9. Give examples from an organization you work for or have worked for of decisions
that might appropriately be analyzed using the quantitative techniques of break-even
analysis, capital budgeting, linear programming, queuing theory, and probability
theory.
McDonald’s probably uses queuing theory to determine the number of checkout stations for the
restaurant and linear programming to figure out how to set up the restaurant to optimize fast-food
productivity.
4–10. Give examples from an organization where you work or have worked of decisions
that might appropriately be analyzed using the Kepner-Tregoe method and cost-benefit
analysis.
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Lussier, Management Fundamentals, 7e
3
The office continually upgrades the computers every few years. When managers make the next
decision, they could use the Kepner-Tregoe method. My manager uses the cost-benefit analysis
when she assigns us work. She mentally judges our strengths and weaknesses and delegates
accordingly.
4-11 Give an example of a specific decision that you or your boss have had to make.
Was the decision time driven or development driven?
Using Exhibit 4–11, select the appropriate decision style for the situation. Be sure to state the
questions you answered and how (H or L) you answered each.
REVIEW QUESTION ANSWERS
4–1. What is the relationship among the management functions, problem solving, and
decision making?
All managers perform the same four functions: planning, organizing, leading, and controlling. While
performing these functions, managers must make decisions and solve problems.
4–2. Why is it necessary to determine the decision structure and decision-making
conditions?
These are the determinants of how much time and effort you should expend on making a decision
and when and when not to use the decision-making model.
4–3. What is the current trend concerning the use of groups to solve problems and make
decisions?
The current trend in management favors increased employee participation.
4–4. Is a decrease in sales and/or profits a symptom or a cause of a problem?
They are symptoms that a problem exists; however, they do not tell you why sales and profits have
decreased.
4–5. Would a maximum price of $1,000 to spend on a stereo be an objective or a
criterion?
This is a “must” criterion. The objective would be to buy a stereo.
4–6. Is there really a difference between creativity and innovation?
Yes. Creativity is a way of thinking that generates new ideas. Innovation is the implementation of a
new idea. Creativity can lead to innovation.
4–7. What is the major difference between nominal grouping and consensus mapping?
Consensus mapping differs from nominal grouping because there can be no competitive struggle
ending in a vote that may force a solution on some members of the group.
4–8. Why are generating and analyzing alternatives separate steps in the decision-
making model?
3
The office continually upgrades the computers every few years. When managers make the next
decision, they could use the Kepner-Tregoe method. My manager uses the cost-benefit analysis
when she assigns us work. She mentally judges our strengths and weaknesses and delegates
accordingly.
4-11 Give an example of a specific decision that you or your boss have had to make.
Was the decision time driven or development driven?
Using Exhibit 4–11, select the appropriate decision style for the situation. Be sure to state the
questions you answered and how (H or L) you answered each.
REVIEW QUESTION ANSWERS
4–1. What is the relationship among the management functions, problem solving, and
decision making?
All managers perform the same four functions: planning, organizing, leading, and controlling. While
performing these functions, managers must make decisions and solve problems.
4–2. Why is it necessary to determine the decision structure and decision-making
conditions?
These are the determinants of how much time and effort you should expend on making a decision
and when and when not to use the decision-making model.
4–3. What is the current trend concerning the use of groups to solve problems and make
decisions?
The current trend in management favors increased employee participation.
4–4. Is a decrease in sales and/or profits a symptom or a cause of a problem?
They are symptoms that a problem exists; however, they do not tell you why sales and profits have
decreased.
4–5. Would a maximum price of $1,000 to spend on a stereo be an objective or a
criterion?
This is a “must” criterion. The objective would be to buy a stereo.
4–6. Is there really a difference between creativity and innovation?
Yes. Creativity is a way of thinking that generates new ideas. Innovation is the implementation of a
new idea. Creativity can lead to innovation.
4–7. What is the major difference between nominal grouping and consensus mapping?
Consensus mapping differs from nominal grouping because there can be no competitive struggle
ending in a vote that may force a solution on some members of the group.
4–8. Why are generating and analyzing alternatives separate steps in the decision-
making model?
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Lussier, Management Fundamentals, 7e
4
Generating and evaluating alternatives at the same time tend to lead to satisficing and wasting time
discussing poor alternatives rather than optimizing.
4–9. What quantitative techniques are commonly used to compare alternatives?
The five quantitative techniques are (1) break-even analysis, (2) capital budgeting, (3) linear
programming, (4) queuing theory, and (5) probability theory.
4–10. When is the cost-benefit analysis commonly used?
The cost-benefit analysis is commonly used when it is unclear whether the benefit to be gained from
an alternative is worth its cost.
4–11. When is the intuition commonly used?
Intuition is commonly used with programmed decisions under the condition of certainty to low risk.
COMMUNICATION SKILLS ANSWERS
4–1. Are problem solving and decision making really all that important? How do you
rate your decision-making ability?
Answers will vary, but students should realize that the success (or failure) of a business is based on
the decisions it makes.
4–2. Which potential disadvantage of group problem solving and decision making do
you think arises most frequently?
Answers will vary.
4–3. Are creativity and innovation really important to all types of businesses? Is it
important to evaluate a creative idea before it becomes an innovation?
Yes. If businesses want to attract and retain customers, they need continuous creativity and
process/product innovations.
Yes. Businesses need to make sure the creative idea will be beneficial and feasible.
4–4. What is the role of intuition in decision making? Should managers use more
objective or subjective intuition techniques when making decisions?
Intuition, the ability to synthesize information quickly and effectively, can help guide a wide range of
critical decisions.
Answers will vary.
4–5. Have you ever used any of the techniques for analyzing and selecting an
alternative? If so, which one(s)?
Answers will vary.
4–6. Should managers be ethical in their decision making? If so, how should ethics be
used in decision making?
4
Generating and evaluating alternatives at the same time tend to lead to satisficing and wasting time
discussing poor alternatives rather than optimizing.
4–9. What quantitative techniques are commonly used to compare alternatives?
The five quantitative techniques are (1) break-even analysis, (2) capital budgeting, (3) linear
programming, (4) queuing theory, and (5) probability theory.
4–10. When is the cost-benefit analysis commonly used?
The cost-benefit analysis is commonly used when it is unclear whether the benefit to be gained from
an alternative is worth its cost.
4–11. When is the intuition commonly used?
Intuition is commonly used with programmed decisions under the condition of certainty to low risk.
COMMUNICATION SKILLS ANSWERS
4–1. Are problem solving and decision making really all that important? How do you
rate your decision-making ability?
Answers will vary, but students should realize that the success (or failure) of a business is based on
the decisions it makes.
4–2. Which potential disadvantage of group problem solving and decision making do
you think arises most frequently?
Answers will vary.
4–3. Are creativity and innovation really important to all types of businesses? Is it
important to evaluate a creative idea before it becomes an innovation?
Yes. If businesses want to attract and retain customers, they need continuous creativity and
process/product innovations.
Yes. Businesses need to make sure the creative idea will be beneficial and feasible.
4–4. What is the role of intuition in decision making? Should managers use more
objective or subjective intuition techniques when making decisions?
Intuition, the ability to synthesize information quickly and effectively, can help guide a wide range of
critical decisions.
Answers will vary.
4–5. Have you ever used any of the techniques for analyzing and selecting an
alternative? If so, which one(s)?
Answers will vary.
4–6. Should managers be ethical in their decision making? If so, how should ethics be
used in decision making?
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Business Management