CHAPTER 11

Test Prep Question 16 (Essay)

Why are both position power and personal power essential in management?

Both powers are essential. Positional power is from reward, coercion or punishment which stem
from legitimate and formal authority. However, there are some tasks that cannot be
accomplished by this power alone. Personal power is developed through expertise and reference.
This allows flexibility in achieving tasks that are beyond the scope of positional power.

Test Prep Question 17 (Essay)
Use Fiedlers terms to list the characteristics of situations that would be extremely favorable and
extremely unfavorable to a leader.

Terms:
Position power - power in terms of rewards, punishments, and legitimacy
Leader-member relations - quality of relationship between leader and followers
Task structure - degree to which the task is clear and well defined, or open ended and more
ambiguous.
So highly favorable situations involve high position power, awesome leader-member relations,
and consist of structured tasks. Unfavorable situations are the exact opposite of the latter. Low
position power, poor leader-member relations, and unstructured tasks.

Test Prep Question 18 (Essay)
Describe the situations in which Houses path-goal theory would expect (a) a participative
leadership style and (b) a directive leadership style to work best.

Participative leadership works when performance incentives are low and people require other
sources of need satisfaction. Directive leadership works well for situations when workers aren't
clear of their job objectives and goals.

CHAPTER 12
Test Prep Question 16 (Essay)
What is the most positive profile of Big Five personality traits in terms of positive impact on
work behavior?

All traits are important and have their roles in the workplace. Extroversion for working well
with others. Agreeableness to be open to ideas and accept group decisions. Conscientiousness
for being able to depend on someone to complete a task. Emotional stability is the ability to be
relaxed and secure. And finally openness allows people to be acceptable of new ideas.

Test Prep Question 17 (Essay)
What is the relationship between personality and stress?

People with Type A personality, have an orientation towards high achievement, impatience, and
perfectionism. As a result they tend to bring stress to themselves and those that surround them.

Test Prep Question 18 (Essay)
How does the halo effect differ from selective perception?

The halo effect is focusing on one attribute of a person and evaluating them to form an overall
impression. Selective perception is about someone focusing on a situation on those aspects that
are most consistent with their existing values.

CHAPTER 13
Test Prep Question 16 (Essay)
What preferences does a person high in the need for achievement bring to the workplace?

They want challenging but achievable goals, individual responsibility and performance feedback.
But this may also lead to higher stress environments for the personnel directly working with this
person.

Test Prep Question 17 (Essay)
How can a team leader use goal-setting theory in working with individual team members?

The team leader can encourage the workers to be part of joint goal setting and performance
review. This will allow workers to be able to choose the goals or have input on the goals. This
makes people more receptive. Including those who are to be reviewed provides transparency
and are more willing to receive feedback and criticisms.

Test Prep Question 18 (Essay)
What are three ways a worker might react to perceived negative inequity over a pay raise?

The 3 ways are the worker might quit the job, try to increase rewards until inequity no longer
increase, or decide to reduce effort to the level that seems consistent with the rewards being
handed out.


CHAPTER 15
Test Prep Question 16 (Essay)
What is the goal of active listening?

The goal is to help subordinate say what they really mean. So when talking to someone, listen
carefully, and repeat the message straight back to the asker.

Test Prep Question 17 (Essay)
Why do managers sometimes make bad decisions based on information received from their
subordinates?

The information received from their subordinates may not be accurate data. Or not receiving
data for analysis or incomplete information. Those subordinates that see the issues may be too
afraid to report what is wrong or missing.

Test Prep Question 18 (Essay)
What are four errors team leaders might make when trying to give constructive feedback to team
members?

The four errors are:
- being general and not specific
- choosing poor time
- including in the message of irrelevant things
- overwhelming the receiver

Chapter 16
Test Prep Question 16 (Essay)
What is the difference between valuing diversity and managing diversity?

Valuing diversity is commitment to helping other people understand their differences often
through educational programs. Managing diversity is commitment to changing the culture of the
organization.

Test Prep Question 17 (Essay)
How can subculture differences create diversity challenges in organizations?

There are numbers of subcultures that form in organizations and become the source of perceived
differences as people work with one another across subculture boundaries.

Test Prep Question 18 (Essay)
If you were asked to give a short class presentation on the silent languages of culture, what
cultural issues would you talk about and what examples would you give?

The silent languages of culture could be that a majority of Filipino's arrive late to gatherings.
This does not mean they don't care; it's just common practice in the Philippines.
Another cultural issue is that extroversion is the desirable trait among people who live in the
western society. In Asian countries, introverts are valued higher than those who are extroverts.
There is a difference in what personalities are considered norm or more valued depending on the
region of operation of the company. These are good to keep in mind when working with both
extroverted and introverted employees.

CHAPTER 17
Test Prep Question 16 (Essay)
What is the difference between a joint venture and a wholly owned subsidiary?

For a joint venture, a foreign corp. and local corp. own a portion of the firm. However, for a
wholly owned subsidiary the foreign corp. owns all of the local company.

Test Prep Question 17 (Essay)
List three reasons why host countries sometimes complain about MNCs.

Three reasons are taking excessive profits out of the host country, hiring the best local labor, not
respecting locals laws and customs, and finally dominating the local economy.
Test Prep Question 18 (Essay)
What does it mean in an international business sense if a U.S. senator says she favors
protectionism?

Protectionism means that he or she wants to make sure that domestic American firms are
protected against foreign competitors. In other words, she doesnt want foreign companies
coming into America and destroying through competition the local firms

Chapter 7
Test Prep Question 16 (Essay)
What is the difference between corporate strategy and functional strategy?

Corporate strategy focuses on the long term direction of the company as a whole. Functional
strategies set directions on the different parts of the organization such as marketing and
manufacturing so that they support the company's overall mission.

Test Prep Question 17 (Essay)
Why is a cost leadership strategy so important when one wants to sell products at lower prices
than competitors?

Because we want to sell at lower prices than our competitors. To do so, the company must have
lower operating costs in the long run. These methods of reducing costs should be hard to imitate
by your competitors.