Ch02_Daft7e_TB
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Ch02_Daft7e_TB

Course Number: MANAGEMENT 5689-9856, Fall 2008

College/University: Indiana State

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Chapter 2 The Evolution of Management Thinking True/False Questions 1. According to the opening case, today, Cemex specializes in delivering concrete in the most technologically advanced parts of the world. Answer: False Level: 2 Page: 41 Type: F 2. Managers today face the ultimate paradox: keep everything running efficiently and profitably, while, at the same time, change everything. Answer: True Level: 3 Page:...

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2 Chapter The Evolution of Management Thinking True/False Questions 1. According to the opening case, today, Cemex specializes in delivering concrete in the most technologically advanced parts of the world. Register to View AnswerLevel: 2 Page: 41 Type: F 2. Managers today face the ultimate paradox: keep everything running efficiently and profitably, while, at the same time, change everything. Register to View AnswerLevel: 3 Page: 42 Type: F 3. Studying history is a way to achieve strategic thinking, see the big picture, and improve conceptual skills. Register to View Answer4. Level: 2 Page: 43 Type: F Political forces are aspects of a culture that guide and influence relationships among people. Register to View AnswerLevel: 1 Page: 43 Type: F 5. The unwritten, common rules and perceptions about relationships among people and between employees and management refers to the economic contract. Register to View AnswerLevel: 1 Page: 43 Type: F 6. Economic forces pertain to the availability, production, and distribution of resources in a society. Register to View AnswerLevel: 1 Page: 43 Type: F 7. The early study of management as we know it today began with what is now called the technology-driven workplace. Register to View AnswerLevel: 2 Page: 45 Type: F 8. The classical perspective on management emerged during the early eighteenth century. Register to View AnswerLevel: 2 Page: 45 Type: F Chapter Two * The Evolution of Management Thinking Test Bank * Page 31 9. Frederick W. Taylor developed Scientific Management and emphasized the fourteen principles of management that should guide managerial behavior. Register to View AnswerLevel: 1 Page: 46 Type: F 10. Scientific management developed a standard method for performing each job. Register to View AnswerLevel: 1 Page: 46 Type: F 11. Since Taylor was the sole contributor in the area of scientific management, he was awarded the title of father of scientific management. Register to View AnswerLevel: 1 Page: 46 Type: F 12. One of the important reasons for the success of UPS is the concept of bureaucracy. Register to View AnswerLevel: 2 Page: 48 Type: F 13. Max Weber emphasized efficiency instead of effectiveness in organizations through his bureaucratic model. Register to View AnswerLevel: 1 Page: 48 Type: F 14. Fayol's Unity of Direction Principle emphasizes that each subordinate receives orders from one, and only one. Register to View AnswerLevel: 2 Page: 50 Type: F 15. Unity of direction principle proposes that similar activities in an organization should be grouped together under one manager. Register to View AnswerLevel: 1 Page: 50 Type: F 16. The hypothetical chain that provides horizontal links between unionized workers in different departments in an organization is called the scalar chain. Register to View AnswerLevel: 2 Page: 50 Type: F 17. Follett and Barnard were early advocates of a more humanistic perspective on management that emphasized the importance of understanding human behavior, needs, and attitudes in the workplace as well as social interactions and group processes. Register to View AnswerLevel: 2 Page: 51 Type: F 18. Most early interpretations of the Hawthorne studies agreed that money was the cause of the increased output. Chapter Two * The Evolution of Management Thinking Test Bank * Page 32 Register to View Answer19. Level: 2 Page: 52 Type: F The Hawthorne studies led to the early conclusion that positive human relations can lead to significantly higher performance. Register to View AnswerLevel: 1 Page: 52 Type: F 20. Maslows hierarchy of needs started with belongingness, progressed to safety, and finally to esteem. Register to View AnswerLevel: 2 Page: 53 Type: F 21. According to Douglas McGregor, Theory X and Theory Y provide two opposing views of workers, where Theory X recognizes that workers enjoy achievement and responsibility, while Theory Y recognizes that workers will avoid work whenever possible. Register to View AnswerLevel: 1 Page: 54 Type: F 22. Theory Y proposes that organizations can take advantage of the imagination and intellect of all of their employees. Register to View AnswerLevel: 2 Page: 54 Type: F 23. The behavioral science approach develops theories about human behavior based on scientific methods and study. Register to View AnswerLevel: 1 Page: 54 Type: F 24. Operations management represents the field of management that specializes in the physical production of goods and services. Register to View AnswerLevel: 1 Page: 57 Type: F 25. There are four components to the systems theory: inputs, outputs, feedback and the customers. Register to View Answer26. Level: 1 Page: 57 Type: F Outputs, from a systems theory viewpoint, are the material, human, financial, or information resources used to produce goods and services. Register to View AnswerLevel: 2 Page: 57 Type: F 27. In systems theory, an open system is open to the suggestions and recommendations of its workers. Register to View AnswerLevel: 1 Page: 57 Type: F Chapter Two * The Evolution of Management Thinking Test Bank * Page 33 28. When the shop foreman receives and rewards valuable suggestions from its workers, and this leads to continual improvement of production, synergy has occurred. Register to View AnswerLevel: 2 Page: 58 Type: A 29. One of the advantages provided by good coordination within an organization is that entropy is reduced. Register to View AnswerLevel: 2 Page: 58 Type: F 30. To survive, closed systems must interact with the environment. Register to View AnswerLevel: 1 Page: 58 Type: F 31. Contingency theory suggests that managers would be more successful if they learned the best way to manage and motivate their employees, and then applied this knowledge in a universally consistent way. Register to View Answer32. Level: 2 Page: 59 Type: A The inherent focus of TQM is on managing the total organization to deliver quality to the customer. Register to View AnswerLevel: 1 Page: 59 Type: F 33. Benchmarking involves finding out what the customer wants. Register to View AnswerLevel: 2 Page: 60 Type: F 34. The implementation of small, incremental improvements in all areas of the organization on an ongoing basis refers to continuous improvement. Register to View AnswerLevel: 1 Page: 60 Type: F 35. The learning organization is an attitude or philosophy about what an organization can become. Register to View AnswerLevel: 2 Page: 60 Type: F 36. Although team leadership is critical, in learning organizations the traditional boss is practically eliminated. Register to View AnswerLevel: 2 Page: 61 Type: F 37. In learning organizations, managers learn to think in terms of "control over" rather than "control with" others. Register to View AnswerLevel: 1 Page: 61 Type: F Chapter Two * The Evolution of Management Thinking Test Bank * Page 34 38. The fundamental unit in a learning organization is command-and-control management teams. Register to View AnswerLevel: 2 Page: 61 Type: F 39. Giving employees the power, freedom, knowledge, and skills to make decisions and perform effectively refers to empowerment. Register to View AnswerLevel: 1 Page: 61 Type: F 40. People are a cost to be minimized for managers in learning organizations. Register to View AnswerLevel: 2 Page: 61 Type: F 41. Peter Drucker coined the word knowledge work more than 40 years ago. Register to View AnswerLevel: 2 Page: 64 Type: F Multiple Choice Questions 1. Which of these, according to the opening case, represents a management challenge for Cemex? a. b. c. d. e. Finding an Asian headquarter given its focus on the developing world Locating opportunities in the advanced part of the world Finding a business approach that accepted, rather than resisted, the natural chaos of the marketplace Finding entrepreneurial suppliers to match Cemexs innovative culture Introducing information technology in a mundane cement business Level: 3 Page: 41 Type: F Register to View Answer2. Sam Walton was way ahead of open-book management when he __________ to/with the employees in the 1960s. a. b. c. d. e. opened the financial records allowed decision making gave bonuses developed technology skills managed the openings of Wal-Mart Level: 2 Page: 42 Type: F Register to View Answer3. A significant changing force in todays workforce are the changing attitudes of Chapter Two * The Evolution of Management Thinking Test Bank * Page 35 __________. a. b. c. d. e. suppliers customers generation X employees CEOs and board members industry leaders Level: 2 Page: 43 Type: F Register to View Answer4. Which of these forces refer to those aspects of a culture that guide and influence relationships among people? a. b. c. d. e. Social Political Economic Technological Legal Level: 1 Page: 43 Type: F Register to View Answer5. Which of these forces comprises unwritten, common rules and perceptions about relationships? a. b. c. d. e. Economic force Political force Social force Legal force Personal force Level: 1 Page: 43 Type: F Register to View Answer6. The passage of new laws, such as the Family Leave Act, exemplify the effect of a. b. c. d. e. economic forces. political forces. social forces. technological forces. human relations force. Level: 2 Page: 43 Type: A Register to View Answer7. Which of these forces pertain to the availability, production, and distribution of resources in a society? a. b. c. Social Political Economic Chapter Two * The Evolution of Management Thinking Test Bank * Page 36 d. e. Technological Legal Level: 1 Page: 43 Type: F forces. Register to View Answer8. Interest rates, inflation, and trade barriers are all examples of a. b. c. d. e. technology political social economic none of the above Level: 2 Page: 43 Type: F Register to View Answer9. The stimulus for technological innovation is often found in which of these? a. b. c. d. e. Social forces Political forces Economic forces Competitive forces All of the above Level: 1 Page: 43-44 Type: F Register to View Answer10. Which of these is the most current management perspective? a. b. c. d. e. The learning organization Contingency views Systems theory The technology-drive workplace Classical perspective Level: 2 Page: 44 Type: F Register to View Answer11. During difficult times, managers often look for ideas to cope with __________ turbulence. a. b. c. d. e. environmental employee market share industry legal Level: 2 Page: 44 Type: F Register to View Answer12. The railroads and internet serve the same basic function: __________. a. transporting information Chapter Two * The Evolution of Management Thinking Test Bank * Page 37 b. c. d. e. connecting buyers and sellers traveling with speed managing product developing industry performance Level: 2 Page: 45 Type: F Register to View Answer13. The nineteenth and early twentieth centuries saw the development of which management perspective? a. b. c. d. e. The human relations movement The behavioral sciences approach The classical perspective The quantitative management approach The TQM approach Level: 2 Page: 45 Type: F Register to View Answer14. Which of these perspectives emphasize a rational, scientific approach to the study of management and sought to make organizations efficient operating machines? a. b. c. d. e. The human relations movement The behavioral sciences approach The scientific management movement The quantitative management approach The TQM approach Level: 1 Page: 46 Type: F Register to View Answer15. Frank Gilbreth felt that efficiency equated with __________. a. b. c. d. e. one best way to do work leadership flows from the top down procedures and policies scientific management bureaucracy Level: 2 Page: 46 Type: F Register to View Answer16. __________ is considered the first lady of management. a. b. c. d. e. Mary Parker Follett Lillian Gilbreth Carly Fioroni Maxine Weber Anne Adams Level: 2 Page: 46 Type: F Register to View Answer Chapter Two * The Evolution of Management Thinking Test Bank * Page 38 17. The three subfields of the classical perspective include a. quantitative management, behavioral science, and administrative management. b. bureaucratic organization, quantitative management, and the human relations movement. c. administrative management, bureaucratic organization, and scientific management. d. scientific management, quantitative management, and administrative management. none of the above. Level: 2 Page: 46 Type: F e. Register to View Answer18. Who is considered as the father of scientific management? a. b. c. d. e. Frank B. Gilbreth Elton Mayo Henry Gantt Douglas McGregor Frederick W. Taylor Level: 1 Page: 46 Type: F Register to View Answer19. __________ is a bar graph that measures planned and completed work along each stage of production by time elapsed. a. b. c. d. e. Time and Work chart Gantt chart Time and Motion chart Production and Delivery chart Gilbreth chart Level: 1 Page: 46 Type: F Register to View Answer20. Fredrick Taylor's contributions were in the field of a. b. c. d. e. scientific management. human resource management. human relations. quantitative management. total quality management. Level: 1 Page: 46 Type: F Register to View Answer21. Which of the following is not a criticism of scientific management? a. It does not appreciate the social context of work. Chapter Two * The Evolution of Management Thinking Test Bank * Page 39 b. c. d. e. It does not appreciate the higher needs of workers. It does not appreciate the careful study of tasks and jobs. It does not acknowledge variance among individuals. It tends to regard workers as uninformed and ignored their ideas and suggestions. Level: 2 Page: 47-48 Type: F Register to View Answer22. Standardization of work and wage incentives are characteristics of a. b. c. d. e. bureaucratic organizations. scientific management. quantitative management. administrative management. behavioral science. Level: 2 Page: 47 Type: F Register to View Answer23. Weber felt selection of employees should be based on: a. b. c. d. e. education competence connections management skills efficient systems Level: 2 Page: 48 Type: F Register to View Answer24. Which of these is a major criticism of scientific management? a. b. c. d. e. It ignored the social context of work. It ignored the impact of compensation on performance. It overemphasized individual differences. It overemphasized the intelligence of workers. It emphasized the social context of work. Level: 2 Page: 48 Type: F Register to View Answer25. Bureaucratic organizations approach was a subfield within the __________. a. b. c. d. e. classical perspective systems theory scientific management learning organization management science view Level: 2 Page: 48 Type: F Register to View Answer26. Organizations, according to Weber's ideas on bureaucracy, should be based on which of Chapter Two * The Evolution of Management Thinking Test Bank * Page 40 these? a. b. c. d. e. Personal loyalty Personal references Rational authority Family ties Charismatic authority Level: 2 Page: 48 Type: F Register to View Answer27. Positions organized in a hierarchy of authority is an important characteristic of a. b. c. d. e. scientific management. bureaucratic organizations. quantitative management. the human relations movement. total quality management. Level: 1 Page: 48 Type: F Register to View Answer28. Archies Antiques, Inc., is characterized by separation of management from ownership and by clearly defined lines of authority and responsibility. These characteristics are consistent with the principles of a. b. c. d. e. scientific management. bureaucratic organizations. administrative management theory. human resource management. all of the above. Level: 2 Page: 48 Type: A Register to View Answer29. Which of the following is NOT a characteristic of Weberian bureaucracy? a. Labor is divided with clear definitions of authority and responsibility that are legitimized as official duties. b. Positions are organized in a hierarchy of authority, with each position under the authority of a higher one. All personnel are selected and promoted based on technical qualifications. Administrative acts and decisions are recorded in writing. Management is the same as the ownership of the organization. Level: 3 Page: 48 Type: F c. d. e. Register to View Answer30. UPS is successful in the small package delivery market. One important reason for this success is the concept of a. globalization. Chapter Two * The Evolution of Management Thinking Test Bank * Page 41 b. c. d. e. employee flexibility. loose standards. bureaucracy. non-bureaucratic organizational system. Level: 2 Pages: 49 Type: F Register to View Answer31. Scientific management focused on __________, and administrative principles focused on __________. a. b. c. d. e. individual productivity, total organization organization productivity, individual effort efficient procedures, management by principle employee ability, employee loyalty employee competence, work flow through the organization Level: 2 Page: 49 Type: F Register to View Answer32. Mary Parker Follett contributed to which field? a. b. c. d. e. Administrative principles approach to management Scientific management approach Total quality management approach Quantitative approach to management Systems approach to management Level: 1 Page: 50 Type: F Register to View Answer33. Mary Parker Follett thought of leadership as __________, rather than techniques. a. b. c. d. e. systems top managers people efficiencies floor managers 34. Register to View AnswerLevel: 2 Page: 50 Type: F Chester Bernard felt that __________ could help a poorly managed organization. a. b. c. d. e. bureaucracy line managers efficiencies informal relations top/down flow of information Level: 2 Page: 50 Type: F Register to View Answer35. The assembly line is most consistent with which of the following general principles of Chapter Two * The Evolution of Management Thinking Test Bank * Page 42 management? a. b. c. d. e. Unity of command Division of work Unity of direction Scalar chain Quality management Level: 2 Page: 50 Type: A Register to View Answer36. The principle that similar activities in an organization should be grouped together under one manager is the essence of the classical perspective known as a. b. c. d. e. unity of command. division of work. unity of direction. scalar chain. quality management. Level: 2 Page: 50 Type: F Register to View Answer37. The use of specialization to produce more and better work with the same level of effort is consistent with the administrative management principle of a. b. c. d. e. unity of command. unity of direction. scalar chain. division of work. none of the above Level: 1 Page: 50 Type: F Register to View Answer38. Which of these refers to a chain of authority extending from top to the bottom of the organization and including every employee? a. b. c. d. e. Unity of command Division of labor Unity of direction Scalar chain None of the above Level: 1 Page: 50 Type: F Register to View Answer39. A social group within an organization is part of the a. b. c. formal organizational structure. informal organization. scalar chain. Chapter Two * The Evolution of Management Thinking Test Bank * Page 43 d. e. reorganization process. top management level. Level: 1 Page: 50 Type: F Register to View Answer40. A significant contribution of Chester Barnard was the concept of a. b. c. d. e. bureaucracy. the informal organization. total quality management. scientific management. traditional theory of authority. Level: 1 Page: 50 Type: F Register to View Answer41. Which of these emphasized power sharing between managers and employees? a. b. c. d. e. Humanistic perspective Classical perspective Scientific management Bureaucratic organizations Contingency perspective Level: 1 Page: 51 Type: F Register to View Answer42. Which management theory states that people have free will? a. b. c. d. e. human relations movement acceptance theory of authority management science bureaucracy administrative principles Level: 2 Page: 51 Type: F Register to View Answer43. Which of these refers to the management thinking and practice that emphasizes satisfaction of employees' basic needs is the key to increased worker productivity? a. b. c. d. e. Scientific management perspective Human resource perspective Management science perspective Behavioral sciences approach Human relations movement Level: 2 Page: 52 Type: F Register to View Answer44. A "diary farm" view of management, i.e., contented cows give more milk, so satisfied workers will give more work was espoused by Chapter Two * The Evolution of Management Thinking Test Bank * Page 44 a. b. c. d. e. human relations management. human resource perspective. behavioral science approach. management science perspective. none of the above. Level: 2 Page: 52 Type: F Register to View Answer45. Most early interpretations of the Hawthorne studies argued that the factor that best explained increased output was a. b. c. d. e. money. days off. human relations. lighting. free food. Level: 2 Page: 52 Type: F Register to View Answer46. Maslows hierarchy of needs started with which of these needs? a. b. c. d. e. Esteem Love Safety Physiological Belongingness Level: 1 Page: 53 Type: F Register to View Answer47. The human resources perspective of management links leadership with __________. a. b. c. d. e. top management employee tasks floor managers efficiencies profit maximization Level: 2 Page: 53 Type: F Register to View Answer48. In building IBM in 1914, Watsons key to increased productivity was __________. a. b. c. d. e. bureaucracy tough leadership employee centered management scientific management maximization Chapter profit Two * The Evolution of Management Thinking Test Bank * Page 45 Register to View Answer49. Level: 2 Page: 53 Type: F The classical perspective on management, according to Douglas McGregor, is consistent with which of the following? a. b. c. d. e. Theory X manager Theory Y manager Theory Z manager Theory A manager None of the above Level: 2 Page: 54 Type: F Register to View Answer50. Tommy believes his employees are responsible, creative, and able to work with minimal direction. He is a a. b. c. d. e. Theory X manager. Theory Y manager. Theory Z manager. Theory A manager. contingency theory manager. Level: 2 Page: 54 Type: A Register to View Answer51. Beth Brant, production supervisor at Trustworthy Tools Mfg., Inc. believes that her employees dislike work, avoid responsibility, and therefore they need to be controlled and directed. Beth is a a. b. c. d. e. Theory X manager. Theory Y manager. realistic manager. Theory Z manager. Theory J manager. Level: 3 Page: 54 Type: A Register to View Answer52. According to your text, which of the following organizations successfully practices Theory Y? a. b. c. d. e. United Parcel Service Signet Painting, Inc. U.S. Postal Service Alcan Aluminum Ltd. (AA) All of the above Level: 2 Page: 54 Type: F Register to View Answer53. The behavioral sciences approach is based on which of the following disciplines? Chapter Two * The Evolution of Management Thinking Test Bank * Page 46 a. b. c. d. e. Anthropology Economics Sociology Psychology All of the above Level: 1 Page: 54 Type: F Register to View Answer54. Organizational development is one specific set of management techniques based in the ________ approach. a. b. c. d. e. management science systems theory behavioral sciences scientific management quantitative Level: 2 Page: 54 Type: F Register to View Answer55. The management science perspective emerged after World Ward II to treat problems associated with a. b. c. d. e. modern global warfare. environmental issues. employee involvement. Germany. improving manufacturing. Level: 2 Page: 55-56 Type: F Register to View Answer56. The management science perspective applies all of the following to managerial problems EXCEPT a. b. c. d. e. statistics. qualitative techniques. mathematics. quantitative techniques. all of the above are correct. Level: 2 Page: 56 Type: F Register to View Answer57. Which of the following would be classified as input for Coca-Cola, Inc.? a. b. c. d. Soda Advertising Water Employee satisfaction Chapter Two * The Evolution of Management Thinking Test Bank * Page 47 e. All of the above Level: 2 Page: 57 Type: A Register to View Answer58. Which of the following would be classified as an output for Coca-Cola, Inc.? a. b. c. d. e. Soda Profits Employee satisfaction All of the above None of the above Level: 3 Page: 57 Type: A Register to View Answer59. Operations research grew out of World War II groups and is based on __________. a. b. c. d. e. group dynamics employees in crisis production in turbulent times mathematical equations a humanistic approach Level: 2 Page: 57 Type: F Register to View Answer60. According to the systems theory, a beautician at a hair salon would be a(n) a. b. c. d. e. output. environment. input. transformation process. none of the above. Level: 3 Page: 57 Type: A Register to View Answer61. For IBM, according to the systems theory, which of these would not be an input? a. b. c. d. e. Raw material Information Financial resources Human resources Employee satisfaction Level: 2 Page: 57 Type: A Register to View Answer62. Which of these is not a component of systems theory? a. b. Inputs Autonomy Chapter Two * The Evolution of Management Thinking Test Bank * Page 48 c. d. e. Feedback Environment Outputs Level: 2 Page: 57 Type: F Register to View Answer63. Which of the following, according to the systems theory, is transformation process for a business? a. b. c. d. e. Incoming trainees Retiring employees Managers Training Recruiters Level: 2 Page: 57 Type: A Register to View Answer64. The teamwork philosophy is based in part on the assumption that five people working together can produce more than five people working individually. This philosophy is consistent with the concept of a. b. c. d. e. transformation. entropy. synergy. feedback. quality. Level: 3 Page: 57 Type: A Register to View Answer65. Which of these must interact with the environment to survive? a. b. c. d. e. Closed system Entropy Synergy Universal view Open system Level: 1 Page: 57 Type: F Register to View Answer66. Then tendency for a system to run down and die refers to a. b. c. d. e. entropy. synergy. open system. case property. contingency perspective. Level: 1 Page: 58 Type: F Register to View Answer Chapter Two * The Evolution of Management Thinking Test Bank * Page 49 67. It is often difficult to make decisions about subsystems, because they are __________. a. b. c. d. e. interdependent independent managed differently filled with employees organizationally based Level: 2 Page: 58 Type: F Register to View Answer68. 10 + 10 = 25 reflects which of these? a. b. c. d. e. Entropy Synergy Open system Closed system Weberian math Level: 3 Page: 58 Type: F Register to View Answer69. In which of the following perspectives is every situation viewed as unique? a. b. c. d. e. A universalist view A contingency view A case view Scientific management view None of the above Level: 2 Page: 59 Type: F Register to View Answer70. __________ is often considered the father of the quality movement. a. b. c. d. e. Weber Gilbreth Follett Deming Gehrke Level: 2 Page: 59 Type: F Register to View Answer71. Which of these focuses on managing the whole organization to deliver quality to customers? a. b. c. d. Bureaucracy Theory Z Management-by-objective Total Quality Management Chapter Two * The Evolution of Management Thinking Test Bank * Page 50 e. Organization-customer relationship Level: 1 Page: 59 Type: F Register to View Answer72. Elements of TQM include a. b. c. d. e. employee detachment. focus on profits. benchmarking. accidental improvement. all of the above. Level: 1 Page 59 Type: F Register to View Answer73. In order to determine how to deal with a problem employee, Sharon evaluated the employee, the problem, and the context in which the problem occurred. She is applying which of the following perspectives? a. b. c. d. e. Participative view Universalist view Autonomy view Contingency view Humanist view Level: 3 Page: 59 Type: A Register to View Answer74. A consultant who recommends the effectiveness of sensitivity training to every organization he serves is violating the basics of which of the following perspectives? a. b. c. d. e. Efficiency perspective Universalist perspective Contingency perspective Scientific management perspective Quantitative perspective Level: 2 Page: 59 Type: A Register to View Answer75. Which of these is a process whereby companies find out how others do something better than they do and then try to imitate or improve on it? a. b. c. d. e. TQM Continuous improvement Benchmarking Empowerment MBO Level: 1 Page: 60 Type: F Register to View Answer Chapter Two * The Evolution of Management Thinking Test Bank * Page 51 76. In a __________ organization all employees look for problems. a. b. c. d. e. continuous improvement bureaucratic empowered learning total quality management Level: 2 Page: 60 Type: F Register to View Answer77. The implementation of small incremental improvements in all areas of the organization on an ongoing basis is referred to as a. b. c. d. e. benchmarking. empowerment. systems theory. contingency perspective. continuous improvement. Level: 1 Page: 60 Type: F Register to View Answer78. Which of these teams is the fundamental unit in a learning organization? a. b. c. d. e. Informal Vertical Industrial Self-directed Union-based Level: 2 Page: 61 Type: F Register to View Answer79. In learning organizations, cost to be minimized. a. b. c. d. e. technology competitors government levels of management people Level: 2 is(are) a manager's primary source of strength, not a Register to View Answer80. Page: 61 Type: F Developing a learning organization involves making specific changes in all of the following areas EXCEPT a. b. leadership. empowerment. Chapter Two * The Evolution of Management Thinking Test Bank * Page 52 c. d. e. participative strategy. adaptive cultures. government controls. Level: 1 Page: 60-62 Type: F Register to View Answer81. Which of these means giving employees the power, freedom, knowledge, and skills to make decisions and perform effectively? a. b. c. d. e. Empowerment TQM Promotion Benchmarking Culture Level: 1 Page: 61 Type: F Register to View Answer82. ________ becomes extremely important in organizations that deal with ideas rather than material goods. a. b. c. d. e. Scientific management Open information Theory X Manufacturing Economic forces Level: 2 Page: 62 Type: F Register to View Answer83. __________ are information systems that unite a companys major business functions, such as order processing, product design, purchasing, and inventory. a. b. c. d. e. Knowledge managements E-businesses Enterprise resource plannings Extranets E-commerces Level: 1 Page: 62 Type: F Register to View Answer84. __________ are organizations that sell their product or service over the internet directly to individual consumers. a. b. c. d. e. B2B B2C B2D C2C D2B Chapter Two * The Evolution of Management Thinking Test Bank * Page 53 Register to View Answer85. Level: 1 Page: 62 Type: F __________ are organizations that sell their product or service over the internet directly to other commercial entities. a. b. c. d. e. B2B B2C B2D C2C D2B Level: 1 Page: 62 Type: F Register to View Answer86. The notion that jobs are so structured that employees dont have to think, stems from what theory of management practice? a. b. c. d. e. scientific management human relations human resource management total quality management bureaucracy Level: 2 Page: 64 Type: F Register to View Answer Scenario Questions ScenarioJasmine Lye The opportunity to gain a foothold in the snack cracker industry had just been found. Jasmine Lye, an account executive manager for Baked Wheat Industries had developed an interest in wheat crackers two months ago when one of her newly hired account execs, Tricia Parker, had convinced her about the high margins and promising future associated with that market. Lye had always believed that if you do your homework in hiring the best people then it only makes sense to listen to their recommendations and implement their suggestions. Lye had given her approval to Parker to explore opportunities to move into this promising new market. This morning, Parker had reported that the Jackson Corporation had severed its contract with Feel Good Crackers Incorporated. Apparently, the Feel Good salesman had shared sensitive information about Jackson at a cocktail party. Parker had already established a good relationship with Feel Good buyers and so recognized this as an opportunity to expand her market into wheat crackers. 1. Lye's management style reflects a belief in a. Theory Y. Chapter Two * The Evolution of Management Thinking Test Bank * Page 54 b. c. d. e. developing her employees through control. grieving theory. all of the above. none of the above. Type: A Register to View Answer2. Lye's behavior provides an example of a. b. c. d. e. the use of scalar rope. division of organization. the principle of inversion. unity of direction. all of the above. Type: A Register to View Answer3. From a System's theory perspective a. b. c. d. e. Lye should increase teamwork, leading to more entropy. Lye should listen to and reward her people well to increase synergy. the Jackson account was lost because Feel Good was too closed to its environment. all of the above. none of the above. Type: A Register to View Answer4. Contingency theory recommends a. Lye should manage all of her employees the way she manages Parker. b. the goal of every manager should be high return on investment, so Lye should expand her market only if it increases ROI. c. Parker should focus on her expertise, recognizing the potential risk of failure with a new market. all of the above. none of the above. Type: A d. e. Register to View Answer Short-Answer Questions 1. The can be defined as one in which everyone is engaged in identifying and solving problems, enabling the organization to continuously experiment, change, and improve, thus increasing its capacity to grow, learn, and achieve its purpose. Chapter Two * The Evolution of Management Thinking Test Bank * Page 55 Answer: learning organization 2. Page: 40 ________ refer to the aspects of a culture that guide and influence relationships among people. Answer: Social forces Page: 43 3. organizations. refer to the influence of political and legal institutions on people and Answer: Political forces Page: 43 4. society. pertain to the availability, production, and distribution of resources in a Answer: Economic forces Page: 43 5. A management perspective that emerged during the nineteenth and early twentieth centuries that emphasized a rational, scientific approach to the study of management and sought to make organizations efficient operating machines is called . Answer: classical perspective Page: 45 6. List three of the basic ideas of scientific management. Answer: Any three of the following develop standard methods for doing each job; select workers with appropriate abilities; train workers in standard methods; support workers and eliminate interruptions; and provide wage incentives. Page: 47 7. Weber's vision of organizations that would be managed on an impersonal, rational basis is called a(n) _______. Answer: bureaucracy Page: 48 8. A subfield of the classical management perspective that focused on the total organization rather than the individual worker, delineating the management functions of planning, organizing, commanding, coordinating, and controlling is called . Answer: administrative principles Page: 49 9. According to Fayol, similar activities in an organization should be grouped together under one manager. This administrative principle is known as _______. Answer: unity of direction Page: 50 Chapter Two * The Evolution of Management Thinking Test Bank * Page 56 10. A management perspective that emerged around the late nineteenth century that emphasized understanding human behavior, needs, and attitudes in the workplace is referred to as a(n) . Answer: humanistic perspective Page: 51 11. A management perspective that suggests jobs should be designed to meet higher-level needs by allowing workers to use their full potential is called a(n) . Answer: human resources perspective Page: 53 12. List the three assumptions associated with McGregor's Theory X. Answer: (1) Individuals have an innate dislike of work and will try to avoid it; (2) Most people must be coerced to get them to put out a reasonable level of effort; and (3) The typical person prefers to be told what to do. Page: 55 13. A management perspective that emerged after World War II, and applied mathematics, statistics, and other quantitative techniques to managerial problems is referred to as a(n) . Answer: management science perspective Page: 56 14. List the five components of the basic systems theory of organizations. Answer: inputs; a transformation process; outputs; feedback; and the environment. Page: 57 15. The concept that the whole is greater than the sum of its parts is known as _______. Answer: synergy Page: 58 16. The _______ view of management is an integration of the case and universalist viewpoints. Answer: contingency Page: 59 17. The process by which companies find out how others do something better than they do and then try to copy and/or improve it is known as ________. Answer: benchmarking Page: 60 18. means giving employees the power, freedom, knowledge, and skills to make decisions and perform effectively. Chapter Two * The Evolution of Management Thinking Test Bank * Page 57 Answer: Empowerment 19 Page: 61 There are three types of e-commerce. They are __________. Answer: business-to-business, business-to-consumer, and consumer-to-consumer Page: 62 20 The efforts to systematically to find, organize, and make available a companys intellectual capital and to foster a culture of continuous learning and knowledge sharing so that a companys activities build on what is already known is called __________. Answer: knowledge management Page: 64 Essay Questions 1 Discuss the advantages and disadvantages of Taylor's Scientific Management. ANSWER: The advantages of scientific management included the standardization of work, the systematic study of work, the linking of performance and pay, and improved productivity. The disadvantages included its failure to consider the social context within which work took place and its failure to appreciate workers' needs, other than their need for money. Level: 2 2 Page: 46-47 The writings of Fayol, Taylor, and Weber provide the foundation for modern management. Identify the school of thought associated with each writer and compare the focus that each writer takes in relation to the organization. ANSWER: Fayol is associated with the Administrative School, focusing on the manager level. Taylor is associated with Scientific Management, and focused on the work level. Weber is associated with the Bureaucratic Model, and his focus was on the level of the organization. Level: 2 Page: 46, 48, 50 3 Briefly describe what happened in the Hawthorne Studies and explain the results and conclusions of these studies. ANSWER: Harvard researchers, working under the direction of Elton Mayo, were studying the effects of various lighting conditions on worker performance at the Western Electric plant in Hawthorne, Illinois. Each time an experimental change was made, performance Chapter Two * The Evolution of Management Thinking Test Bank * Page 58 improved, regardless of the change. The early conclusion was that workers perceived that their work was important enough to hire researchers to work with them, and this recognition of importance was sufficient to motivate improved performance. This conclusion led to the development of the Human Relations Movement, stressing the importance of satisfied, happy workers. Recent analysis suggests that money may have been the single most important motivating factor. Level: 3 4 Page: 51-52 Briefly describe systems theory, including synergy and negative entropy. ANSWER: Systems theory suggests that an organization can be considered a system composed of a number of interrelated subsystems. These subsystems include people, structure, technology, and goals. A change in one subsystem results in a rippling effect on the other subsystems. Managed properly, the subsystems work well together and produce more as a whole system than the parts could produce working alone. This is synergy. Negative entropy is the ability to resist the natural tendency to disintegrate. Level: 2 Page: 57-58 5 Discuss the differences between the case view, the universalist view, and the contingency view. ANSWER: These viewpoints relate to the applicability of management principles. The case view holds that every situation is unique, thus there are no universal principles. Conversely, the universalist view believes that the same management principles will work across every situation in every organization. The contingency view is an integration of these two, i.e., while there are no universal principles, there are common patterns and characteristics. The manager's task is to identify what principles will work when, based on an analysis of key contingencies. Level: 2 Page: 58-59 6 Identify and briefly describe the interacting elements in a learning organization. ANSWER: The answer should focus on the following elements: Leadership, open information, empowered employees, strong, adaptive culture, team-based structure, and participative strategy. Refer to exhibit 2-1 in text. Level: 2 Page: 60-62 7. What are the three important adjustments that need to be to create a learning organization Chapter Two * The Evolution of Management Thinking Test Bank * Page 59 in order to promote continuous learning? Why is each important? ANSWER: Shifting to team-based structures, empowering employees, and sharing information are the three adjustments that need to be made. Team-based structures are the basic foundation of the structure. Empowering gives employees the freedom, resources, information, and skills to make decisions and perform effectively. Sharing information gives the employees the ability to identify needs and solve problems because they are given the information about whats happening in the organization. Level: 2 8. Page: 61-62 What makes consumer-to-consumer e-commerce possible? What are some examples of consumer-to-consumer e-commerce? ANSWER: Consumer-to-consumer e-commerce is made possible when an Internet-based business acts as an intermediary between and among consumers. Examples of these are eBay and other Web-based auctions, Napster, and ShareBear. Level: 1 Page: 63 Chapter Two * The Evolution of Management Thinking Test Bank * Page 60

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Indiana State - MANAGEMENT - 5689-9856
Chapter 3 The Environment and Corporate CultureTrue/False Questions1. IBMs new strategy is to focus less on technology and more on relationships. Answer: True 2. Level: 2 Page: 81 Type: FFactors external to the organizations have been primarily t
Indiana State - MANAGEMENT - 5689-9856
Chapter 4 Managing in a Global EnvironmentTrue/False Questions1. Wal-Mart is a well-established company with a global interest who is facing minimal challenges in developing a successful international business. Answer: False 2. Level: 2 Page: 118 T
Indiana State - MANAGEMENT - 5689-9856
Chapter 5 Ethics and Social ResponsibilityTrue/False Questions1. Timberlands focus on philanthropy costs the company more than $2 million in sales each year. Answer: True 2. Level: 2 Page: 155 Type: FEnron, in mid-2000 was Americas 7th largest co
Indiana State - MANAGEMENT - 5689-9856
Chapter 6 Managing Small Business Start-UpsTrue/False Questions1. Carol Weinstock recognized a market for multicultural greeting cards and launched EthnoGraphics. She would be a good example of an entrepreneur. Answer: True 2. Level: 1 Page: 192 Ty
Indiana State - MANAGEMENT - 5689-9856
Chapter 7 Managerial Planning and Goal SettingTrue/False Questions1. The Europa Hotel survived terrorism by carefully planning security measures for guests, employees, and the building. Answer: True 2. Level: 2 Page: 237 Type: FBecause everything
Indiana State - MANAGEMENT - 5689-9856
Chapter 8 Strategy Formulation and ImplementationTrue/False Questions1. Because of Nintendos errors in strategy, they have fallen from number one to number three in the video game industry. Answer: True 2. Level: 2 Page: 267 Type: FGiven the need
Indiana State - MANAGEMENT - 5689-9856
Chapter 9 Managerial Decision MakingTrue/False Questions1. Decision making is easy, given that everybody makes decisions everyday. Answer: False 2. Level: 1 Page: 302 Type: FDecision-making must not be done amid ever-changing factors, unclear inf
Indiana State - MANAGEMENT - 5689-9856
Chapter 10 Designing Adaptive OrganizationsTrue/False Questions1. Organizing is the deployment of organizational resources to achieve strategic goals. Answer: True 2. Level: 1 Page: 350 Type: FOrganizing defines what to do while strategy defines
Indiana State - MANAGEMENT - 5689-9856
Chapter 11 Managing Change and InnovationTrue/False Questions1. Organizational change refers to the adoption of a new idea or behavior by an organization. Answer: True 2. Level: 1 Page: 392 Type: FRedesign and renewal of the total organization is
Indiana State - MANAGEMENT - 5689-9856
Chapter 12 Human Resource ManagementTrue/False Questions1. Human resource management is the set of activities that are undertaken to attract, develop and maintain an effective work force. Answer: True 2. Level: 1 Page: 429 Type: FHuman resource m
Indiana State - MANAGEMENT - 5689-9856
Part V CompensationChapter 10 Managing CompensationOBJECTIVE QUESTIONS 1. In the opening case in chapter 10, an experienced computer programmer complains that new hires start at Sigma, Inc. at 15% more than his salary. Dr. Smiths answer reveals th
Indiana State - MANAGEMENT - 5689-9856
Chapter 9 Developing CareersChapter 9 Developing CareersOBJECTIVE QUESTIONS 1. Career development differs from training in that: a) career development has a short-term focus. Training has a long-term focus. b) career development is initiated by e
Indiana State - MANAGEMENT - 5689-9856
Chapter 8 Training the WorkforceChapter 8 Training the WorkforceOBJECTIVE QUESTIONS 1. Organizations face a number of important training issues such as: a) How can training keep pace with a changing organizational environment? b) How will trainin
Indiana State - MANAGEMENT - 5689-9856
Chapter 7 Appraising and Managing PerformanceChapter 7 Appraising and Managing PerformanceOBJECTIVE QUESTIONS 1. Which of the following is a comprehensive list of the functions in performance appraisal? a) Identifying, measuring, and managing hum
Indiana State - MANAGEMENT - 5689-9856
Chapter 6 Managing Employee Separations, Downsizing, and OutplacementChapter 6 Managing Employee Separations, Downsizing, and OutplacementOBJECTIVE QUESTIONS 1. During the early 2000s, which of the following was true of the business and employmen
Indiana State - MANAGEMENT - 5689-9856
Part III StaffingChapter 5 Recruiting and Selecting EmployeesOBJECTIVE QUESTIONS 1. Carmen is working through a process to ensure her company of the right number of people with the right skills to meet their goals in delivering service and outputs
Indiana State - MANAGEMENT - 5689-9856
Chapter 4 Managing DiversityChapter 4 Managing DiversityOBJECTIVE QUESTIONS: 1. You are the HRM manager in a company with a highly diverse workforce. Over lunch you are explaining to a Caucasian, middle-class, line manager that she needs to use d
Indiana State - MANAGEMENT - 5689-9856
Part II The Contexts of Human Resource ManagementChapter 3 Understanding Equal Opportunity and the Legal EnvironmentOBJECTIVE QUESTIONS 1. The HR departments legal responsibilities include: a) monitoring the companys HR decisions. b) rendering leg
Indiana State - MANAGEMENT - 5689-9856
Chapter 2 Managing Work Flows and Conducting Job AnalysisChapter 2 Managing Work Flows and Conducting Job AnalysisOBJECTIVE QUESTIONS 1. To compete and use its material and human resources effectively, an organization needs a proper fit between i
Indiana State - MANAGEMENT - 5689-9856
Chapter 1 Meeting Present and Emerging Strategic Human Resource ChallengesMULTIPLE CHOICE QUESTIONS 1. As the director of HR, you are in a meeting with your corporate officers discussing the firms deliberate use of human resources to gain a competit
Indiana State - MANAGEMENT - 5689-9856
Part SixChapter 17 International HRM ChallengeCHAPTER OVERVIEW 17.3) (PPT 17.1-This chapter demonstrates how managers can effectively utilize HRM practices to enhance their firms competitive response in an era when the opportunities and challeng
Indiana State - MANAGEMENT - 5689-9856
Part SixChapter 16 Managing Workplace Safety and HealthCHAPTER OVERVIEW 16.2) (PPT 16.1-Organizations realize the importance of social responsibility and that safe organizations are more effective organizations. Moreover, the law requires that t
Indiana State - MANAGEMENT - 5689-9856
Part SixChapter 15 Working with Organized LaborCHAPTER OVERVIEW 15.3) (PPT 15.1-Some employees prefer to work in a unionized setting, whereas others prefer a workplace that is not unionized. This chapter explores the labor-management relationshi
Indiana State - MANAGEMENT - 5689-9856
Part SixChapter 14 Respecting Employee Rights and Managing DisciplineCHAPTER OVERVIEW 14.3) (PPT 14.1-This chapter examines employee rights and employee discipline. The concepts of employee rights, management rights, and the employment-at-will d
Indiana State - MANAGEMENT - 5689-9856
Chapter 13Chapter 13 Developing Employee RelationsCHAPTER OVERVIEW 13.3) (PPT 13.1-This chapter addresses the importance of effective employee relations. It explores the roles of managers and employee relations specialists, and it describes how
Indiana State - MANAGEMENT - 5689-9856
Part FiveChapter 12 Designing and Administering BenefitsCHAPTER OVERVIEW 12.3) (PPT 12.1-The chapter begins with a broad view of the importance of employee benefits and how they are associated with the total compensation package. The two categor
Indiana State - MANAGEMENT - 5689-9856
Chapter 11Chapter 11 Rewarding PerformanceCHAPTER OVERVIEW 11.3) (PPT 11.1-This chapter focuses on the effective design and implementation of pay-forperformance systems. First, it addresses the major challenges and pitfalls facing managers in th
Indiana State - MANAGEMENT - 5689-9856
Part FiveChapter 10 Managing CompensationCHAPTER OVERVIEW 10.2) (PPT 10.1-The way a firm handles compensation-related issues has a direct impact on employees and the business. Compensation affects the firm's ability to attract, retain, and motiv
Indiana State - MANAGEMENT - 5689-9856
Part FourChapter 9 Developing CareersCHAPTER OVERVIEW 9.2) (PPT 9.1-This chapter focuses on the career development process. Firstly, career development is defined. Secondly, the major managerial challenges related to career development are explo
Indiana State - MANAGEMENT - 5689-9856
Chapter 8Chapter 8 Training the WorkforceCHAPTER OVERVIEW 8.3) (PPT 8.1-Organizations face several questions with respect to training. For example, they have to respond to "How can we effectively and efficiently deliver training to employees?" a
Indiana State - MANAGEMENT - 5689-9856
Part FourChapter 7 Appraising and Managing PerformanceCHAPTER OVERVIEW (PPT 7.1-7.2) An important function of effective management is accurate measurement of employee performance. This chapter discusses the foundation, design, and implementation o
Indiana State - MANAGEMENT - 5689-9856
Part ThreeChapter 6 Managing Employee Separations, Downsizing, and OutplacementCHAPTER OVERVIEW 6.1-6.2) (PPTConducting a termination or layoff is one of the most sensitive and difficult things that a manager will ever have to do. There are a nu
Indiana State - MANAGEMENT - 5689-9856
Part ThreeChapter 5 Recruiting and Selecting EmployeesCHAPTER OVERVIEW 5.2) (PPT 5.1-This chapter focuses on staffing, one of the most important HR activities in which the manager is involved. First, the hiring process is defined and discussed.
Indiana State - MANAGEMENT - 5689-9856
Chapter 4Chapter 4 Managing DiversityCHAPTER OVERVIEW 4.2) (PPT 4.1 -One of the greatest challenges facing organizations today is managing workforce diversity in a way that both respects the employees' unique attitudes and promotes a shared sens
Indiana State - MANAGEMENT - 5689-9856
Part TwoChapter 3 Understanding Equal Opportunity and the Legal EnvironmentCHAPTER OVERVIEW 3.2) (PPT 3.1-This chapter examines the aspects of HR law and regulations. The goal is to identify and discuss the laws themselves and how best to comply
Indiana State - MANAGEMENT - 5689-9856
Chapter 2Chapter 2 Managing Work-flows and Conducting Job AnalysisCHAPTER OVERVIEW 2.2) (PPT2.1-(PPT 2.3-2.5) Work-flow is a highly dynamic process, and a well-designed organizational structure will ensure that work is performed efficiently and
Indiana State - MANAGEMENT - 5689-9856
Chapter 1Chapter 1 Meeting Present and Emerging Strategic Human Resource ChallengesCHAPTER OVERVIEW 1.1-1.2) (PPTThis first chapter provides a broad overview of the strategic human resource challenges organizations face, and provides a framework
Indiana State - MANAGEMENT - 5689-9856
Chapter 21 Operations and Service ManagementTrue/False Questions1. R.R. Donnelly was losing money because of the outdated operation systems the company had in place. Answer: True 2. Level: 1 Page: 774 Type: FThe technical core, in an automobile c
Indiana State - MANAGEMENT - 5689-9856
Chapter 20 Information Technology and E-BusinessTrue/False Questions1. A key aspect in the success of Wal-Mart is updating the information technology infrastructure. Answer: True 2. Level: 2 Page: 742 Type: FBy providing managers with more inform
Indiana State - MANAGEMENT - 5689-9856
Chapter 19 Managerial and Quality ControlTrue/False Questions1. Organizational control is the systematic process of regulating organizational activities to make them consistent with the expectations in plans, targets, and standards of performance.
Indiana State - MANAGEMENT - 5689-9856
Chapter 18 TeamworkTrue/False Questions1. The traditional assembly line requires workers to perform multiple tasks, not repetitive tasks. Answer: False 2. Level: 1 Page: 659 Type: FA group of two or more people who interact and coordinate their w
Indiana State - MANAGEMENT - 5689-9856
Chapter 17 CommunicationTrue/False Questions1. Managers spend 80 percent of every working day reading or writing. Answer: False 2. Level: 2 Page: 624 Type: FCommunication permeates every management function. Answer: True Level: 1 Page: 625 Type:
Indiana State - MANAGEMENT - 5689-9856
Chapter 16 MotivationTrue/False Questions1. Motivation is the arousal, direction and persistence of behavior. Answer: True 2. Level: 1 Page: 588 Type: FEmployee motivation affects productivity, and part of a managers job is to channel motivation
Indiana State - MANAGEMENT - 5689-9856
Chapter 15 LeadershipTrue/False Questions1. Leadership occurs among people, involves the use of influence, and is used to attain goals. Answer: True 2. Level: 1 Page: 552 Type: FLeadership is reciprocal. Answer: True Level: 1 Page: 552 Type: F3
Indiana State - MANAGEMENT - 5689-9856
Chapter 14 Dynamics of Behavior in OrganizationsTrue/False Questions1. The concepts and principles of OB are important to managers because in every organization human being ultimately make the decision that controls how the organization will acquir
Indiana State - MANAGEMENT - 5689-9856
Chapter 13 Meeting the Challenge of DiversityTrue/False Questions1. The genuine efforts to accept and manage diverse people in North America are a phenomenon of the 1970s. Answer: False 2. Level: 2 Page: 466 Type: FMost managers, from any ethnic
Indiana State - MANAGEMENT - 5689-9856
Tutorial 2 Chapter 3 - Financial Planning Skills True/false and Discuss Q1. With the current availability of computer packages, it is now not necessary for financial planners to explain to clients the basis on which their advice is determined. The ri
Indiana State - MANAGEMENT - 5689-9856
GLOBAL CORPORATE FINANCESixth EditionINSTRUCTOR'S MANUALSuk H. Kim University of Detroit Mercy Seung H. Kim St. Louis UniversityiPREFACE The purpose of the Instructor's Manual for Global Corporate Finance is to help instructors use the textb
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 2MOTIVES FOR WORLD TRADE AND FOREIGN INVESTMENT CHAPTER OUTLINE I. Motives for Foreign Trade a) The theory of comparative advantage (1) Why comparative advantage occurs b) The theory of factor endowments c) Product life-cycle theory d) Other
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 3THE BALANCE OF PAYMENTS CHAPTER OUTLINE I. An Overview of the Balance of Payments a) Sources and uses of funds b) The balance of payments as a whole Balance-of-Payments Accounts a) The current account Group A (1) Balance on goods (2) Servi
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 5THE FOREIGN EXCHANGE MARKET AND PARITY CONDITIONS CHAPTER OUTLINE I. Major Participants in the Exchange Market a) Commercial banks (1) Operating the payment mechanism (2) Extending credit (3) Reducing risk (4) Exchange trading by commercial
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 6CURRENCY FUTURES AND OPTIONS CHAPTER OUTLINE I. The Currency Futures Market a) Futures market participants b) The futures market and the forward market c) How to read currency futures quotes d) Market operations (1) Margin requirements (2)
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 7FINANCIAL SWAPS CHAPTER OUTLINE I. The Emergence of the Swap Market a) The origins of the swap market (1) Parallel loans (2) Back-to-back loans b) Drawbacks of parallel and back-to-back loans c) The growth of the swap market Plain Vanilla S
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 8EXCHANGE RATE FORECASTING CHAPTER OUTLINE I. II. Measuring Exchange Rate Changes Forecasting Needs of the Multinational Company a) Hedging decision b) Working capital management c) Long-term investment analysis d) Long-term financing decisi
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 9MANAGING TRANSACTION EXPOSURE AND ECONOMIC EXPOSURE CHAPTER OUTLINE I. Basic Nature of Foreign Exchange Exposures a) Exposure management strategy (1) Forecast the degree of exposure (2) Develop a reporting system to monitor exposure and exc
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 10TRANSLATION EXPOSURE MANAGEMENT CHAPTER OUTLINE I. Translation Rules a) Current/noncurrent method b) Monetary/nonmonetary method c) Temporal method d) Current rate method e) Comparison of the four translation methods FASB No. 8 and FASB No
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 11INTERNATIONAL FINANCIAL MARKETS CHAPTER OUTLINE I. Eurocurrency Markets a) Creation of Eurodollars (1) Uses of Eurodollars b) Eurodollar instruments (1) Eurodollar deposits (2) Eurodollar loans (2) Interest rates c) Euronote issue faciliti
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 12INTERNATIONAL BANKING ISSUES AND COUNTRY RISK ANALYSIS CHAPTER OUTLINE I. International Banking Operations a) Worlds largest financial companies b) Types of foreign banking offices (1) Representative offices (2) Correspondent banks (3) Bra
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 14FINANCING FOREIGN INVESTMENT CHAPTER OUTLINE I. Internal Sources of Funds a) Funds from the parent (1) Equity contributions (2) Direct loans (3) Parent guarantees b) Funds provided by operations c) Loans from sister subsidiaries External S
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 15INTERNATIONAL WORKING CAPITAL MANAGEMENT CHAPTER OUTLINE I. Basic Concepts of Working Capital Management a) Importance of working capital management b) Net working capital funding c) Economic constraints of current asset management (1) For
Indiana State - MANAGEMENT - 5689-9856
CHAPTER 16INTERNATIONAL PORTFOLIO INVESTMENT CHAPTER OUTLINE I. Key Terminologies a) Risk analysis: standard deviation b) Capital asset pricing model c) Aggressive vs defensive stocks c) Correlation coefficients d) Portfolio return and risk e) Effic