Management Fundamentals: Concepts, Applications, and Skill Development 7th Edition Solution Manual

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Lussier,Management Fundamentals,7e.Answers to Questions in the TextChapter 1:Managementand Its HistoryWORK APPLICATION SAMPLE ANSWERSMost of the answers are actual student answers or based on student answers. You may give theseanswers as part of your lecture before, after, or in place of getting student answers.1–1. Describe the specific resources used byapresent or past boss. Give the manager’s job title anddepartment.My boss was the branch manager at Merchants Bank. The primary resource she used was thetellers (human resources) to get the job done. When the manager was filling in for tellers at lunchor on break, she and the other tellers conducted banking transactions for savings and checkingaccounts on the computer terminal (physical resources), which was connected to the mainframecomputer at the home office. The computer was the main information resource on accountactivities. 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 himor 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 age50, is successful because he only checks in a couple of times a day. The rest of the day he is free togo where he wants to and do whatever he wants to do. The reason for his success is that he hiresgood college students to work and trains them well so that he does not need to be around tosupervise them.1–3.Select a manager, preferably one who is or was your boss, and state the specific managementskills 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 partof his time is spent doing it, and he also has to train the workers how to lube the cars. Jeff needsinterpersonal skills in order to motivate his employees to come to work and to do a good job. Jeffuses 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 howthat person performs each of the four management functions.My boss, Sonia, owns her own beauty salon. Sonia has to plan the work schedules for 15employees.Shehastoassignhercustomerstospecifichairdressers,pedicurists,and/ormanicurists. When people have multiple services, coordination is important so that customersdon’t have to wait around for the next service. Sonia does the staffing by hiring and training all theemployees. Sonia leads employees to get them to do a good job. She continually reminds all of ushow important customer satisfaction is. Itworks because most of our customers always come backto us, and new customers tend to become regulars, too. Sonia spends a lot of her time talking to

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Lussier,Management Fundamentals,7e.the customers and making sure they are happy with their haircut or nails; and if they are not, shehas the employee try to fix the problem. Once in a while she will give a customer the next visit freeso 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 howthat person performs in each of the three management role categories. Be sure to identify at least oneof 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 prettyboring, and he tried to help us have a good time by joking around and gaining satisfaction from thepeople we work with. John spent most of his time in the informational role as the monitor. Whenthe machines were acting up, he would tinker with them; or when he couldn’t fix them, he’d playthe disseminator role to get maintenance to come fix the machines. When we have a machine notworking, 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 togive the organization’s name.I work part time in the office for a car dealer, Casey Dodge. There are four supervisors: officemanager, service manager, sales manager, and auto body manager. These four supervisors reportto 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 afunctional 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 afunctional manager and is responsible for the produce department. Karen did not hire the staff, butshe did have the functional tasks of training them to stock the shelves with produce andsupervising their work.REVIEW QUESTION ANSWERS1–1.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 rolecategories?The three management role categories include interpersonal, informational, and decisional roles.

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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 yourability to apply the management concepts through critical thinking, and to develop your managementskills in your personal and professional lives.COMMUNICATION SKILLS ANSWERSApplications may also be used as class discussion questions or written assignments to developcommunication 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 managementbecause knowledge of what management is can help you to be a better employee, because this coursecan 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 sametime?It is more important for managers to be effective than efficient because even if managers do the wrongthings very well, they will not be successful.No. You really can’t improve both at thesame time in the sense that you have to be effective before youcan 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 areeffective in more than one industry.1–5.Some people say the hard skills (technical, finance, quantitative analysis) are more important formanagers than soft skills (interpersonal), and some say the opposite is true. What is your view?

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Lussier,Management Fundamentals,7e.Although it can make a good debate, it is really hard to say whether one is really more important thanthe other. A truly good manager has both hard and soft skills; most people don’t progress inmanagement 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 ofmanagement. Students are not employees of the college; in essence, students are customers, so yourprofessor is not a manager.1–7.When a good employee is promoted to management, which management level is the promotionusually 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’stechnical skills are still important, but interpersonal skills and decision-making skills become moreimportant as a manager. The nonmanager operative employee performs mostly nonmanagementfunctions. 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 oftraining? Should they? Whyorwhy 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 leadershave had extensive training.APPLYING THE CONCEPT ANSWERSApplying theConcept1–1:Management SkillsIdentify each activity as being one of the following types of management skills:A. technicalB. interpersonalC. decision making1. 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 themonth in an email.

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Lussier,Management Fundamentals,7e.B.Interpersonal. Although writing an e-mail does require some limited technical ability everyone seemsto have in business today, the focus ison communication of information. And communication is animportant part of interpersonal skills.5.Themanagerisschedulingwhichmachineswillproduceeachproductnextweekc.Decision-making. Scheduling requires the manager to make decisions.Applying theConcept1–2:Management FunctionsIndicate which type of function the manager is performing in each situation:A. planningB. organizingC. leadingD. controllingE. nonmanagement6. 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 ofcontrolling.8. The manager is encouraging an employee to get a college degree so he can advance in thecompany.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 inaccounting.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 anyof the management functions.11. The manager is scheduling employee work hours for the next two weeks.a. Planning. Scheduling futurework hours is part of planning.12. The manager is giving the workers a pep talk to motivate them to work hard to meet theproduction quotatoday with an absent employee.c. Leading. The pep talk is given to motivate employees, which is intended to influence theirperformanceApplying theConcept1–3:Management RolesIdentify each of the managerial activities as part of one of the three role categories:A. interpersonal roleB. informational roleC. 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 theform.14. The manager discusses next year’s budget.c. Decisional role. As stated in the text, Budgeting is part of the resource allocation role15. 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 beginningwork.b. Informational role. The manager is playing the monitor role by reading the report to receiveinformation.Applying theConcept1–4:Differences Among Management LevelsIdentify the level of management in the following five instances:A. topB. middleC. first-line18. 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 ANSWERSJoin the Discussion 1–1: Executive CompensationIn 2013, the CEO-to-worker pay ratio was 331:1, and the CEO-to-minimum-wage-worker pay ratio was774:1. 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 tofetch their price. Top executives should be paid multimillion-dollar compensation packages; after all, if itweren’t for effective CEOs, companies would not be making the millions of dollars of profits they makeeach 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 vary2. Is it ethical for managers to take large pay increases when laying off employees?Answers vary3. Is it ethical for managers to get pay raises when their companies lose money?Answers vary4. Are companies being socially responsible when paying executives premium compensation?Answers vary

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Answers to Questions in the TextChapter 2: The Environment: Culture, Ethics, andSocial ResponsibilityWORK APPLICATION SAMPLE ANSWERSMost of the answers are actual student answers or based on student answers. You may give these answers as part ofyourlecture 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 bybuilding 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 theall-beef patties and put them on a bun with lettuce, cheese, pickles, onions, and sauce. Then we put them in a box as our BigMac 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 valuebecause I got a good price on it, but more importantly, it provides me with the pleasure of being able to go where I want togo, 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 memberof.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 fewawards 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 theorganization 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 andbeliefs. 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 tableserver is busy and another is not, you wait on tables that are not yours until the person catches up. Table servers also helpbus 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 Abdowssucceed 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 Supermarketmoved in across the street from Big Y. As a result, Big Y has lost some customers it would have kept if Edward’s had notmoved in across the street.2–7. Give an example of how technology has affected one or more organizations, preferably one you work for or haveworked for.When I used to shop at Costco Wholesale, it had two people at the checkout. One person would read the product numbersto the other one who would type them into the cash register. But now Costco Wholesale finally upgraded its technology tothe modern computer scanners. Now it only needs one person at each cashier station. It is more accurate and faster atchecking 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 ofmoral 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 justifiedsince “everyone else did it.” I displayed postconventional behavior because I tended to work faster than the rest of mycoworkers 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 managementdid give a good example of ethical behavior. As an auto accident adjuster, I was not paid by commission, so there was noneed 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 thecustomers; 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 oursponsor. Pizza Plaza paid for new uniforms, and on the back of each shirt it says “Pizza Plaza.” Pizza Plaza used socialreaction 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–certifiedinteriors and exteriors. Also, all employees must turn off their computers at the end of each workdaybefore 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 iswasted while no one is at the office.REVIEW QUESTION ANSWERS2–1. What are the factors within the internal environment?The five internal environmental factors are management and culture, mission, resources, the systems process, andstructure.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 andcontinuously improve.2–7. What is the external environment?The organization’s externalenvironment 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 allrelevant 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, usingrenewable energy, purchasing environmentally preferable equipment and supplies, and working with one another andwith surrounding communities to advance sustainability values.

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COMMUNICATION SKILLS ANSWERS2–1. 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 ofthese 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 areconsidered the means to achieve the ends.2–4. Which of the five artifacts, or important ways that employees learn about organizational culture, is the mostimportant?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; consciouslyknow the values and beliefs; agree with the shared assumptions, values, and beliefs; and behave as expected. Apositive 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, andceremonies.Yes. As stated in the text, managing culture is an important part of top management. To successfully change or mergecultures, 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 andcontinuously 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 itsadvantage, 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 inlearning about ethics and possible ethical situations, students are better prepared to handle ethics when the needarises 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 ANSWERSApplying theConcept 2–1:The Internal EnvironmentIdentify the internal environmental factor underlying each statement.A. management and cultureB. missionC. resourcesD. systems processE. structure1. “We plant seeds, grow vegetables, cut them up, place them in a bag, and sell them to Stop and Shop supermarkets aslocally 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 theConcept2–2:Strong and Weak CulturesIdentify whether each statement reflects an organization with a strong or weak culture.A.strong cultureB. 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 snowstormto 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 tiesand 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 manneracceptable 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 attirebecause 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. Employeesenforcing behavior comes from a strong culture.Applying theConcept2–3:The External EnvironmentIdentify which external environmental factor is referred to in each statement.A. customersB. competitionC. suppliersD. labor forceE. shareholdersF. societyG. technologyH. the economyI. governments11. “Are you going to close that sale toCostco?”I.Governments. The government can stop mergers and acquisitions when it believes society will be harmed by the businesstransaction.12. “If we don’t get a 4% raise, theTeamstersunion will go on strike at our company.”G.Technology. A new material is a technology change.13. “Animal activist groups pressured theRingling Brotherscircus to the point that it will stop having elephant acts in2018.”B. Competition. AT&T lost its monopoly, as it has competition now.14. “KFCbought some bad chickens in China, and sales declined.”H.The economy. The government can influence the economy through monetary policy of changing theamount of money inthe economy.

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15. Our company was going to be sold toSprint, but the government said that would be in violation of antitrust laws.”E.Shareholders. They own the company and appoint top managers.16. “Teslais working on software for its cars to be self-driven.”G.Technology. New software is a technology change.17. “LinkedInand other social media websites took some of the traffic flow away fromFacebook.”B.Competition. The social media websites compete with eachother 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. “Theowners 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 Concept2–4:Level of Moral DevelopmentIdentify eachstatement by its level of moral development.A. preconventional levelB. conventional levelC. postconventional level20. 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 bossasks 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 toconvince John that lying is OK.

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Lussier,Management Fundamentals, 7eApplying the Concept2–5:Ethical ApproachIdentify each statement by its approach to making ethical decisions.A. Golden RuleB. four-way testC. stakeholder’s approachD. discernment and adviceE. code of ethics23. 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’mdoing 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 stakeholdersinvolved.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 untoyou.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 gettingadvice to determine if it is or not.JOIN THE DISCUSSION ANSWERSJoin the Discussion 2–1: Downsizing and Part-Time WorkersAs firms struggle to compete in the global economy, many have downsized.Downsizingis the process ofcutting resources to get more done withless and thereby increase productivity. In some firms, thepositions formerly held by full-time employees are filled by part-time workers. Using part-timeemployees saves companies money because such employees do not receive any benefits (e.g., healthinsurance), in contrast to full-time employees, who are entitled to benefits. Walmart is known formaintaining 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 vary2. Is using part-time employees rather than full-time ones ethical and socially responsible?Answers vary

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Lussier,Management Fundamentals, 7e3. Would you be willing to pay higher prices at stores,such as Walmart, so that more full-timeworkers could replace part-time workers?Answers varyJoin the Discussion 2–2: Sex, Profanity, and ViolenceTheFederal Communications Commission (FCC)has the power to regulate television broadcasts.Advocates for more regulation (Parents Television Counciland Mediawatch-UK, formerly theNationalViewers’ and Listeners’ Association) state that TV shows with violent acts, profanity, and sexual contentshould be shown later at night when children most likely will not be watching. For example, manySeinfeldepisodes have sexual themes, and the show was not aired until 9:00 P.M., but now it’s shown atall hours of the day.Sex and the City, Jersey Shore,and other shows with sexual content and violenceare also shown at all hours. However, advocates against regulation (National Coalition AgainstCensorship) don’t want censorship at all, on the grounds that it violates free speech. They claim it’s upto 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 ofTV per day.)Answers vary2. Do TV shows that include sex and violence reflect religious and societal values?Answers vary3. Is it ethical and socially responsible to air TV shows with sexual content, profanity, and violenceduring hours when children are watching?Answers vary4. Is it ethical and socially responsible to portray women as sex objects?Answers vary5. Should the FCC regulate television, and if so, how far should it go? Should it make networks tonedown the sex and violence, or take shows off the air?Answers vary

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Lussier,Management Fundamentals, 7e1Answers to Questions in the TextChapter 3: Managing Diversity in aGlobal EnvironmentWORK APPLICATION SAMPLE ANSWERSMost of the answers are actual student answers or based on student answers. You may give theseanswers as part of your lecturebefore, after, or in place of getting student answers.3–1. Classify a business you work for or have researched as domestic, international, ormultinational. If the business is international or an MNC, list some of the countries in which it doesbusiness.I worked for McDonald’s, and it has restaurants all over the global village. The United States, all EUcountries 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 Americanwhen 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 costmore. 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? Forexample, if Nike made sneakers in America and sold them for $125 and made them abroad andsold 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 allyear 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 investmentglobally.

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Lussier,Management Fundamentals, 7e2I 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 themglobally. It also does some importing and exporting of the things its sells. It has its e-readers made byFoxconn. 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 andHispanic. 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 youpersonally by being discriminated against, including being unfairly treated through being criticizedor 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 andtwo women, everyone is White, without noticeabledisabilities, one guy is Jewish and I think the restare Christian, and no one has come out as a homosexual. I’ve been discriminated against because ofmy knowledge and skills. I’m much more productive than the other employees, and it is notappreciated; I’ve had to put up with aggravation because of it. Others have been given moreresources 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 businessyou work(ed) for.In my company we do yard work, and the majority of the employees are of minority groups, mostlyHispanics. The owner hires the best potential workers, but if they don’t work hard, they get firedregardless 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, sothe diversity in language makes it harder to work with them. To help adapt,most of the supervisorscan 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 moreappealing to you?I’d like to go one of the major European countries, especially England because they speak Englishand I could get to see lots of countries from there. Because China is so important internationally, I’dthink about going there if it would definitely help me advance in my careerREVIEW QUESTION ANSWERS3–1. How are businesses classified in the global village?

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Lussier,Management Fundamentals, 7e3Businesses in the global village are classified as domestic businesses, international businesses, ormultinational 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 andenforcing trade rules and agreementsamong 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?Inlicensing, a licensor agrees to give a licensee the right to make its products or services or use itsintellectual property for a royalty. Infranchising, the franchisor licenses the entire business to thefranchisee for a fee and royalties. With a license, you can essentially manage and run your businessany way you want too. But with a franchise, you have to run the business the way the franchisorwants you to.3–7. What is the difference among a strategic alliance, joint venture, and direct investment?Astrategic allianceis an agreement to share resources that does not necessarily involve creating anew company. Ajoint ventureis created when two or more firms share ownership of a newcompany.Direct investmentis building or buying operating facilities in a foreign country. So astrategic alliance is generally two companies helping each other, a joint venture is shared ownershipof a new company, and a direct investment is generally considered wholly owning a subsidiary inanother 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 thelocal marketplace.3–9. If you were to start your own small business, would you most likely use contracting, strategicalliances, joint ventures or direct investment?As discussed, small businesses are commonly international and are more likely to use contracting ora strategic alliance. They most likely don’t have the money to make ajoint venture or directinvestment.3–10. What is the difference between diversity and affirmative action?

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Lussier,Management Fundamentals, 7e4Affirmative action is purposeful steps to create employment opportunities for minorities andwomen, whereas diversity is broader in scope as it doesn’t focuses simply on not discriminatingagainst diverse groups and helping only some of them.3–11. What is the glass ceiling?Theglass ceilingis the invisible barrier that prevents women and minorities from advancing to thetop 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 arequalified 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, assertivenessversus nurturing, uncertainty avoidance or acceptance, and long-term versus short-term orientation3–15. What is GLOBE?GLOBE stands for Global Leadership and Organizational Behavior Effectiveness, which is an ongoingcross-cultural investigation of leadership and national culture.3–16. What are the nine dimensions of Project GLOBE?Assertiveness,futureorientation,genderdifferences,uncertaintyavoidance,powerdistance,societal collectivism, in-group collectivism, performance orientation, and humane orientation.COMMUNICATION SKILLS ANSWERS3–1.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 UnitedStates? Why?

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Lussier,Management Fundamentals, 7e5Answers 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 bebeneficial 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, ifpeople 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 bestdeal 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, butthey can create very profitable niches in which to compete. Also, many of them provide productsand services to MNCs, so they are actually cooperating or doing business with them rather thancompeting 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 atwork is a different race than I am, and there is a guy in the office in a wheelchair that I don’t actuallywork with. I’m not sure if anyone is religious around here. But the managers here are college gradswith experience, whereas their employees don’t have college educations, but several of have a lotmore experience than the managers. Being in maintenance, we go to all the departments in thecompany 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 needimproving, 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 inyour career?

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Lussier,Management Fundamentals, 7e6Answers will vary, but hopefully students have had positive mentor experiences and will seek themin the future.3–14. Should expatriates be given global cultural diversity training, and should their families gettraining too?At the cost of a $1 million for a three-year international assignment, and with family adjustment tothe new foreign culture being the most important factor in determining the success or failure of theinternational assignment, it seems like a good investment to offer training to the expatriate andfamily.APPLYING THE CONCEPT ANSWERSApplying theConcept3–1:Global PracticesIdentify each practice as more likely to be used by large or small global companies:A. large MNCsB. small international companies1. Companies thatdevelop 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 theproduct 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 othercountries, 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 theConcept3–2:Forms of Global BusinessIdentify which activity or form of global business is described in each statement.A. global sourcingB. importing andexportingC. licensing and franchisingD. contractingE. strategic alliance and joint ventureF. direct investment6. Springfield College offers a master’s degree program in Israel at the Health and BehavioralSciences College, which provides thefacilities and administrative support.

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Lussier,Management Fundamentals, 7e7E.Joint venture and Strategic Alliances. This is a strategic alliance, which is a form of partnershipjoint 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 itsSesame 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 itsU.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 theConcept 3–3:GLOBE DimensionsIdentify the dimension of cultural diversity exemplified by each statement.A.assertivenessB. future orientationC. gender differencesD. uncertainty avoidanceE. power distanceF. societal collectivismG. in-group collectivismH. performance orientationI. humane orientation16.The people in this country have one of thehighest 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 throughteamwork.

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Lussier,Management Fundamentals, 7e8E.Powerdistance. 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 femaleemployees 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 greatsatisfaction from watching their team in the World Cup.H.Performance orientation. The statement illustrates high achievement and material success.Youcannot 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 powerdistance.22. Managers don’t really care about the safety of their employees and provide poor workingconditions.I.Humane orientation. Providing poor working conditions shows low caring toward people.23. Employees get nervous and stressed when theyeven 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.Performanceorientation. The statement illustrates striving for improvements.JOIN THE DISCUSSION ANSWERSJoin the Discussion 3–1: Buy AmericanYou most likely have heard the slogan “Buy American.” Many labor unions urge Americans to buyproducts made in the United States, because that helps retain jobs for American workers. On theother hand, some Americans ask why they should buy American products if they cost more or theirquality or style is not as good as that of foreign-made products. But as you’ve seen, it isn’t alwayseasy 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 vary2. Is it ethical and socially responsible to buy foreign products?Answers varyJoin the Discussion 3–2: File Sharing

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Lussier,Management Fundamentals, 7e9Since the early 2000s, some peer-to-peer (P2P) file-sharing networks and services have beentargeted by music companies and an industry watch group, theRecording Industry Association ofAmerica (RIAA), which represents musicians, for copyright infringement and shut down. The musiccompanies complain that they are losing profits and that musicians are losing royalties as peopledownload music for free, which violates copyright law. The RIAA also expanded into lawsuits againstindividuals. Movies, software, and other copyright material are also being illegally copied throughfile sharing (piracy).According to theInternational Federation of the Phonographic Industry,piracy is a real problem, as95% of all music downloads violate copyrights. (1) In many countries, because some governmentsdon’t have the desire or resources to enforce copyright laws, some governments even resist allowingcompanies to take legal action against companies and individuals.1. Is it ethical and socially responsible for file-sharing companies to give people the means todownload music, movies, or software for free?Answers vary2. Is it ethical and socially responsible for people to download music, movies, or software for free,whichprevents recording, film, or software companies and artists from getting any royalties?Answers vary3. Is it ethical and socially responsible for countries to ignore and even resist enforcing copyrightlaws? Should all countries enforce copyright laws?Answers varyJoin the Discussion 3–3: Speaking EnglishThe United States was once known as the “melting pot,” as people from all over the world came tothe country and adjusted to its culture. In the past, generally, immigrants had to learn English to geta job. Today, however, many organizations hire people who can’t speak English, and they usetranslators and have policies written in multiple languages for these employees. Governmentagencies at the federal, state, and local levels are also providing translators and written materials inother languages.1. Why are some organizations no longer requiring workers to speak English?Answers vary2. Should a worker be required to be able to speak English to get a job in the United States?Answers vary3. Is it ethical and socially responsible to (or not to) hire people who can’t speak English and toprovide translators and policies written in multiple languages?Answers varyJoin the Discussion3–4: Bribes

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Lussier,Management Fundamentals, 7e10An American businessperson working in a foreign country complained to a local telephone managerthat the technician showed up and asked for a bribe before installing the phone. The businesspersonrefused, so the telephone worker left without installing the phone. The telephone company managertold the businessperson that the matter would be investigated, for a fee (bribe).1. Is it ethical and socially responsible to pay bribes?Answers vary2. Should the businessperson have paid the bribe to get the phone installed?Answers vary

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Lussier,Management Fundamentals, 7e1Answers to Questions in the TextChapter4:CreativeProblemSolvingand Decision MakingWORK APPLICATION SAMPLE ANSWERSMost of the answers are actual student answers or based on student answers. You may givethese answers as part of your lecturebefore, after, or in place of getting student answers.4–1.Describe a situation in which a job objective was not met. Identify the problemcreated 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 orderwas not ready on time for the 3:00 p.m. mail pickup. At around 4:00 p.m. it was ready, sothe manager told me to stop working and drive to the post office so that the order would goout that night.4–2.Give an example of a poor decision made by a manager performing a managementfunction. Explain the management function and the problem created by the poordecision.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 Billand Karen were both late. They figured that the boss wouldn’t say anything to them. However, theboss 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 anorganization you work for or have worked for, and describe the decision condition ineach case.A nonprogrammed decision at Costco Wholesale where I work was when it put in new checkoutcounters with computers that scan the products. Before the new scanners, one person would readoff the numbers while another punched them into the cash register. As a stock person, I walk aroundand 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 haveworked 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 theactivities that would take place. The group did not satisfice, the women tended to dominate, andgroupthink was not a problem. I’d say that the major disadvantage was the time wasted. I don’tthink the decision was any better; a simple, small committee could have done the whole thing just aswell. 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 companytime and you have to go anyway.4–5.Define a problem in an organization you work for or have worked for. Be sure toclearly distinguish the symptoms from the causes of the problem.

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Lussier,Management Fundamentals, 7e2At our supermarket, sales are down. This is a symptom. The cause of the problem is the newsupermarket 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 clubmember. Figures and Fitness always recruits from the members. The manager looks for memberswho 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 tobe attractive—“want” criteria.4–7.Give an example of how you or someone else solved a problem using the stages inthe creative process. Be sure to list the steps and note whether illumination came duringincubation or while working on the problem.I’m a member of the parish council at Holy Cross Church.Step 1. Preparation—Wewere working on developing an organization chart so committeemembers would understand their responsibilities and working relationships. We did notfinalize the chart at the meeting; instead, we were asked to think about it for the nextmeeting.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 gothome, I made a revised chart.Step 3. Evaluation—At the next meeting, I presented my new chart to the group. Duringthe discussion, a few members recommended minor changes, which were made, and thefinal chart was accepted.4–8.Give examples of organizational problems for which brainstorming, nominalgrouping, or consensus mapping would be appropriate techniques.The Gap management is always concerned about getting more sales. Displays are considered aprimary source for increasing sales. I think the manager could have a brainstorming session withemployees to try to come up with some ideas formore creative displays.4–9.Give examples from an organization you work for or have worked for of decisionsthat might appropriately be analyzed using the quantitative techniques of break-evenanalysis,capitalbudgeting,linearprogramming,queuingtheory,andprobabilitytheory.McDonald’s probably uses queuing theory to determine the number of checkout stations for therestaurant and linear programming to figure out how to set up the restaurant to optimize fast-foodproductivity.4–10. Give examples from an organization where you work or have worked of decisionsthat might appropriately be analyzed using the Kepner-Tregoe method and cost-benefitanalysis.

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Lussier,Management Fundamentals, 7e3The office continually upgrades the computers every few years. When managers make the nextdecision, they could use the Kepner-Tregoe method. My manager uses the cost-benefit analysiswhen she assigns us work. She mentally judges our strengths and weaknesses and delegatesaccordingly.4-11Give 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 thequestions you answered and how (H or L) you answered each.REVIEW QUESTION ANSWERS4–1. What is the relationship among the management functions, problem solving, anddecision making?All managers perform the same four functions: planning, organizing, leading, and controlling.Whileperforming these functions, managers must make decisions and solve problems.4–2. Why is it necessary to determine the decision structure and decision-makingconditions?These are the determinants of how much time and effort you should expend on making adecisionand 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 makedecisions?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 profitshavedecreased.4–5. Would a maximum price of $1,000 to spend on a stereo be an objective or acriterion?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 theimplementation of anew 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 competitivestruggleending 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, 7e4Generating and evaluating alternatives at the same time tend to lead to satisficing and wastingtimediscussing 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) linearprogramming, (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 begained froman 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 tolow risk.COMMUNICATION SKILLS ANSWERS4–1. Are problem solving and decision making really all that important? How do yourate your decision-making ability?Answers will vary, but students should realize that the success (or failure) of a business isbased onthe decisions it makes.4–2. Which potential disadvantage of group problem solving and decision making doyou think arises most frequently?Answers will vary.4–3. Are creativity and innovation really important to all types of businesses? Is itimportant to evaluate a creative idea before it becomes an innovation?Yes. If businesses want to attract and retain customers, they need continuous creativity andprocess/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 moreobjective or subjective intuition techniques when making decisions?Intuition, the ability to synthesize information quickly and effectively, can help guide a widerange ofcritical decisions.Answers will vary.4–5.Haveyoueverusedanyofthetechniquesforanalyzingandselectinganalternative? If so, which one(s)?Answers will vary.4–6. Should managers be ethical in their decision making? If so, how should ethics beused in decision making?

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