Suggested Guideline for Revision
R5. Describe an effective culture for (a) a relatively stable milieu
& (b) a dynamic environment.
Utilizing the ten characteristics of organizational culture, an organization
in a dynamic milieu versus a relatively stable milieu potentially would
stronger member identity because of the need to get things done
less group emphasis again because of the need to act quickly,
less people focus because there is less time to spend on people
stronger unit integration so that response time is increased,
less control because environmental factors are changing too fast,
a high level of risk tolerance,
reward criteria based on performance & responding to environmental
a high level of conflict tolerance in order to adapt more quickly,
a high focus on results (ends) rather than the means (processes),
a high level of open system focus.
R6. How can pressure groups constrain managerial discretion?
SIGs can attempt to influence an organization's actions in areas such
Changing societal & political values can influence the power of
pressure groups & how willing they are to get involved in influencing
an organization's actions.
what products they sell,
how they sell them, or
what resources are available.
R9. Why do managers try to minimize environmental uncertainty?
Managers try to minimize environmental uncertainty because:
they don't like dealing with the unknown.
They like control & certainty.
The less the environmental uncertainty, the more predictable is
the future, & the more accurate forecasts are likely to be.
R10. What effect, if any, does the general milieu have on managerial
The general environment's effect on managerial practice is low &
tends to be subtle.
It probably is significant over the long-term, but it has little
influence in the short-term.
It is a potential factor that needs to be monitored.
Yet, since the specific milieu is directly relevant to organizational
operations, & since management's monitoring resources are limited,
the general milieu can be expected to receive little of management's attention.
CH5: SOCIAL ONUS & MANAGERIAL ETHICS:
R 3. Contrast social responsibility & social responsiveness. Which
is more theoretical? Why?
Social responsibility = business' pursuit of long-term goals that
are good for society.
Social responsiveness = the capacity of a firm to respond to social
Social responsibility is more theoretical because it is management
driven, not market driven.
D5. Discuss this statement: "In the long run, those who do not use power
in a way that society considers responsible will tend to lose it."
This statement reflects the fact that businesses are expected to
recognize their responsibilities to society.
Since businesses do have a lot of power in our society, that society
expects them to use it responsibly or face the loss of that power through
changes in laws, regulations, consumption patterns, or societal attitude.
CH6: DECISION MAKING:
R1. What, if any, are the differences between problem solving &
Many decisions are made in order to solve problems, but decisions don't
always have to revolve around problem solution.
R5. Why would an organization's senior executives favor developing a
wide range of programmed decisions for middle- & lower-level managers?
Problems at the middle & lower levels tend to be more structured.
Thus, routine problems should be handled by a repetitive decision.
Also, programmed decisions minimize the need for managers to exercise
Discretion costs money, so the more non-programmed decisions a manager
must make, the higher salary he or she will command because greater judgment
is needed. There are strong economic incentives for top management to create
standard operational procedures, rules, & policies to guide other middle-
& lower-level managers.
D2. How might an organization's culture influence the way in which managers
An organization's culture might influence how managers make decisions
by emphasizing how much risk taking is permitted, & by the importance
it places on the effectiveness (reward-wise) of the decisions made.
For example, if the organizational culture rewards decisions that
reflect the status quo, chances are good that those types of decisions
will be made.
CH8: STRATEGIC MANAGEMENT:
R3. Compare an organization's mission with its objectives.
A mission defines the organization purpose. It is
broad & answers the question: What business or businesses
are we in?
Objectives are more detailed. They translate the mission
into concrete terms.
R4. What relevance does an organization's culture have to its strategy?
Strong & weak cultures have different effects on strategy &
the content of a culture has a major effect on the content of the strategy.
Strong cultures make it easier to convey to employees the organization's
distinctive competence, but strong cultures are harder to change.
The degree of emphasis a culture places on risk, innovation, &
other cultural dimensions will influence the content of the organization's
R5. Does an organization have to pursue a growth strategy to be healthy
& prosperous? Why or why not?
R8. Contrast the BCG matrix & the grand strategies framework. Which
do you think is more useful? Why?
While growth has traditionally had wide appeal to North American
business firms, it's not always the best strategy.
If the milieu is stagnant or in decline, a
growth strategy may be dysfunctional.
Management may be able to obtain better results by pursuing a stability,
retrenchment, or combination strategy.
R9. What are the forces that dictate the rules of competition within
The BCG matrix is a portfolio analysis technique that
allows strategic managers to evaluate the performance of each of the SBUs
within the corporate portfolio.
The grand strategies framework is an approach to describing
the grand or all-encompassing strategies that the organization might pursue.
Both are useful tools.
The BCG matrix is useful for illustrating resource
allocation but has clear limitations for guiding management in setting
overall corporate strategy.
The grand strategies framework is useful for establishing
overall corporate strategy but provides little help to managers
as they evaluate each of the individual SBUs.
Used together, the two corporate-level strategic frameworks can
provide managers with a complete picture.
Michael Porter developed the five forces model of industry competition,
current level of competitive rivalry,
threat of entry by new competitors,
bargaining power of buyers,
bargaining power of suppliers, &
threat of substitute products.
D3. Perform a SWOT analysis on a local business you feel you know well.
Do your conclusions match the strategies that business follows?
Answers to this question will vary. Students need to thoroughly
cover each area of the SWOT.
SW = internal milieu
OT = external milieu
Match the S with O & improve W & prevent T.
CH.13-FOUNDATION OF BEHAVIOUR
R5. What behavioral predictions might you make if you knew that an employee
had (a) an external locus of control? (b) a low Mach score? (c) low self-esteem?
(d) high self-monitoring tendencies?
Employees with an external locus of control might be less
satisfied with their jobs, more alienated from the work setting,
& less involved in their jobs.
Employees with a low Mach score would be overly idealistic,
emotional, & concerned about fair & equitable treatment.
Employees with low self-esteem would be more susceptible
to external influence.
Employees with high self-monitoring tendencies would tend
to be more adaptable in adjusting their behavior to the demands
of different situations.
R8. Name four different shortcuts used in judging others. What effect
does each have on perception?
Selectivity: people select only bits & pieces of situations.
Assumed similarity: the belief that others are like oneself,
which can affect perception about what others are like or what others want
from their jobs.
Stereotyping: judging a person on the basis of one's perception
of a group to which he or she belong. It can distort perceptual judgments.
The halo effect: perceiving an individual based on a single
trait rather than the total package of who that person is.
Fundamental attribution error: The tendency to under-estimate
the influence of external factors & over-estimate the influence of
internal factors when making judgments about behaviour of others.
Self-serving bias: The tendency for people to attribute their
own success to internal factors while putting the blame for failures on
D2. Given that perception affects behavior, do you think there is anything
management can do to reduce employee perceptual distortion?
Feedback from employees can give the manager insights into
how the employees perceive their jobs & work conditions.
Also, attitude surveys might prove beneficial.
R7. What role does perception play in (a) expectancy theory, (b) equity
theory, & (c) reinforcement theory?
R8. Explain the motivation implications of expectancy theory for management
Expectancy theory - the strength of a tendency to act
in a certain manner depends on the strength of perceived outcome.
Equity theory - perception determines equity or inequity between
inputs & outcome.
Reinforcement theory - this does not depend on perception,
but on the actual reward for a certain behavior.
The key to expectancy theory is:
understanding an individual's goal,
the linkage % effort & performance,
the linkage % performance & rewards, &
the linkage % rewards & individual goal satisfaction.
The expectancy theory recognizes that there is no universal
principle for explaining everyone's motivation.
D1. Would an individual with a high n Ach be a good candidate for a
management position? Explain.
Managers = the one in firm who directs deeds of others.
High achievers typically don't make good managers.
D2. Most of us have to work for a living (i.e., hold down a paying job)
& work is a central part of our lives. So why do managers have to worry
so much about employee motivation issues?
They want to do things themselves.
They don't have a lot of faith in others & have difficult delegating.
High achievers understand driving themselves, but not working through
Even though most of us have to work & therefore need a job, managers
still have to worry about employee motivation because:
employees aren't always willing to put forth the effort to
do that job well.
Also, even for employees that are willing to put forth effort, we
want to make sure that they continue to perform at the standards
we need to reach firm's goals.
D4. If you had to develop an incentive system for a small manufacturing
company, which elements from which motivation theories would you use? Why?
Would your choice of incentive systems be the same if it were a medical
research lab? Explain.
Be sure that students explain the rationale for choosing the one(s)
that they did.
The choice of incentive systems would probably differ for a medical
research lab because of the different types of jobs involved.
A medical research lab job would be much more creative &
Also, performance at the lab might be harder to measure than
it would for a manufacturing job.
R1. How can someone be a manager but not a leader, a leader but not
a manager, & both a manager & a leader?
A manager =
appointed & their influence comes from the formal authority
they possess because of their position.
All managers should ideally be leaders.
may either be appointed or emerge from within a group.
can influence others to perform beyond the actions
dictated by formal authority, but they may not necessarily have the prerequisite
managerial capabilities or skills.
So, a person could be a manager but not a leader, a leader but not
a manager, & both a manager & a leader.
R4. Would a subordinate's personality characteristics affect the way
he or she reacts to various leadership styles? Explain.
Yes, a subordinate's personality characteristics could affect
the way he or she reacts to various leaderships styles.
For instance, the personality characteristic, locus of control
could influence how a person reacted to a leader's requests.
Likewise, a person's self-monitoring tendencies, Machiavellianism,
authoritarianism, & self-esteem could also affect how an individual
responded to a leader.
R5. What similarities & differences do you see in these contingency
models: Fiedler, House's path-goal, & Hersey-Blanchard?
The contingency models are similar in that each recognizes the key
elements in a leadership situation: the leader & his or her
style (traits), the subordinates & how the leader interacts
with them (leader behavior), & the leadership situation
(situational contingencies). Yet, they are different in that each
measures & explains these various factors differently.
R9. What are the various sources of power that a leader might use? Do
you think any one source of power is more effective than the others? Explain.
According to French & Raven, there are five sources of power that
a leader might use:
Legitimate power is the power a person has a result of his
or her position in the formal hierarchy.
Coercive power is the power to punish or control using negative
Reward power is the power to reward or produce positive benefits.
Expert power is influence that results from specialized expertise,
knowledge, or skill.
Referent power is power that arises from identification with
a person who has desirable resources or personal traits.
D1. What are some personal traits you think might be useful to a leader?
Would these traits be more valuable in some situations than in others?
D2. Which leadership theories, or parts of theories, appear to demonstrate
reasonable predictive capability?
Based on traits listed in Table 16-1 (drive, desire to lead, honesty
& integrity, self-confidence, intelligence, & job-relevant knowledge).
The fact that some traits would be more valuable in certain situations
is part of the premise behind contingency theories of leadership,
so yes some of these might be more valuable than others in some
There appears to be predictive capability with:
parts of the Fiedler model. Employee's productivity &
satisfaction can be predicted when the LPC instrument is used
in situations characterized by the model's categories I, IV, V, &
Satisfaction has been predicted successfully with the path-goal
model & the use of task & individual characteristics as moderating
R4. Why is what is measured probably more crucial to the control process
than how it is measured?
The criteria that are measured become the focus of attention.
Whatever criteria are chosen, people will emphasize
& attempt to look good on that criteria.
D5. "Every individual employee in the organization plays a role in controlling
work activities." Do you agree, or do you think control is just something
that managers are responsible for? Explain.
Control is something that every individual employee plays a role
in, particularly in organizations where employees have been
empowered. But even in organizations where employees haven't been
empowered, these employees play a role in measuring, comparing,
& correcting performance. Managers will be responsible
for establishing the standards, approaches, & guidelines for
measuring, comparing, & correcting action.
General Guideline in answering exam.:
Allocate time evenly amongst questions based on marks
Answer the question you know most first to build up confidence.
Spend a minute or two to plan for the structure & argument
of the answer.
State your main argument in the first sentence of every
Underline or highlight all the key terms or main points.
A simple diagram or table may help explain complex theories.
Make sure you have answered all parts of the questions. A brief
summary at the end of your answer could be a good check.
NEVER leaves a question unanswered, even you don't know
NEVER put your exam to luck.
Be an internal Locus of Control student.