For Organizational Theory Design and Change 7th Edition by Jones
For Organizational Theory Design and Change 7th Edition by Jones
For Organizational Theory Design and Change 7th Edition by Jones
7) Suppliers have a direct effect on the organization's efficiency and an indirect effect on its
ability to attract customers.
Answer: TRUE
Page Ref: 32
Difficulty: Easy
LO: 2-1
8) All stakeholder groups are equally important for an organization.
Answer: FALSE
Page Ref: 35
Difficulty: Moderate
LO: 2-2
9) To be effective, an organization must at least minimally satisfy the interests of all the groups
that have a stake in the organization.
Answer: TRUE
Page Ref: 35
Difficulty: Easy
LO: 2-2
10) The stakeholder group with ultimate authority over the use of a corporation's resources is
customers.
Answer: FALSE
Page Ref: 37
Difficulty: Easy
LO: 2-3
11) The board has the legal authority to hire, fire, and discipline corporate management.
Answer: TRUE
Page Ref: 37
Difficulty: Easy
LO: 2-3
13) An inside director of a company can be a professional director who holds positions on the
boards of many companies.
Answer: FALSE
Page Ref: 38
Difficulty: Moderate
LO: 2-3
17) A manager who has direct responsibility for the production of goods and services is said to
be holding a staff role.
Answer: FALSE
Page Ref: 40
Difficulty: Easy
LO: 2-3
19) The chief operating officer, functional managers, and divisional managers form a company's
top management team.
Answer: FALSE
Page Ref: 40
Difficulty: Easy
LO: 2-3
20) A problem in determining managerial accountability that arises when delegating authority to
managers is known as an agency problem.
Answer: TRUE
Page Ref: 41
Difficulty: Easy
LO: 2-4
24) An ethical dilemma is the quandary people experience when they must decide whether or not
they should act in a way that benefits someone else, even if it harms others and isn't in their own
interest.
Answer: TRUE
Page Ref: 43
Difficulty: Easy
LO: 2-5
26) As per the moral rights model of ethics, an ethical decision is one that produces the greatest
good for the greatest number of people.
Answer: FALSE
Page Ref: 46
Difficulty: Easy
LO: 2-5
27) As per the justice model of ethics, an ethical decision is a decision that best maintains and
protects the fundamental rights and privileges of the people affected by it.
Answer: FALSE
Page Ref: 46
Difficulty: Easy
LO: 2-5
28) As per the moral rights model of ethics, an ethical decision is a decision that distributes
benefits and harms among stakeholders in a fair, equitable, or impartial way.
Answer: FALSE
Page Ref: 46
Difficulty: Easy
LO: 2-5
29) Behaving ethically can reduce transaction costs through the reputation effect.
Answer: TRUE
Page Ref: 50
Difficulty: Easy
LO: 2-5
30) Organizations that are doing badly in an economic sense and are struggling to survive are the
ones most likely to commit unethical and illegal acts.
Answer: TRUE
Page Ref: 51
Difficulty: Easy
LO: 2-5
31) In the long run, an organization that follows unethical practices tends to spend more on
research and development and less on advertising and managerial salaries.
Answer: FALSE
Page Ref: 52
Difficulty: Moderate
LO: 2-5
32) are people who have an interest or claim in an organization, in what it does, and in
how well it performs.
A) Stakeholders
B) Early adopters
C) Boundary spanners
D) Late adopters
Answer: A
Page Ref: 28
Difficulty: Easy
LO: 2-1
33) The rewards that stakeholders receive for participating in an organization are called
.
A) inducements
B) contributions
C) annuity
D) dividends
Answer: A
Page Ref: 28
Difficulty: Easy
LO: 2-1
34) are people who are closest to an organization and have the strongest or most direct
claim on organizational resources.
A) Early adopters
B) Free riders
C) Whistle-blowers
D) Internal stakeholders
Answer: D
Page Ref: 28
Difficulty: Easy
LO: 2-1
36) are the owners of an organization, and, as such, their claim on organizational
resources is often considered superior to the claims of other inside stakeholders.
A) Employees
B) Customers
C) Shareholders
D) Trade unions
Answer: C
Page Ref: 29
Difficulty: Easy
LO: 2-1
37) Which of the following groups of stakeholders receives inducements in the form of dividends
and stock appreciation?
A) trade unions
B) suppliers
C) shareholders
D) workforce
Answer: C
Page Ref: 29
Difficulty: Easy
LO: 2-1
38) Which of the following is an inside stakeholder group?
A) government
B) customers
C) suppliers
D) shareholders
Answer: D
Page Ref: 29
Difficulty: Easy
LO: 2-1
39) Which of the following is an inside stakeholder group that contributes money and capital?
A) government
B) suppliers
C) shareholders
D) managers
Answer: C
Page Ref: 29
Difficulty: Easy
LO: 2-1
40) Which of the following groups of stakeholders receives inducements in the form of bonuses,
status, and power?
A) shareholders
B) managers
C) suppliers
D) unions
Answer: B
Page Ref: 29
Difficulty: Easy
LO: 2-1
41) Which of the following group of outside stakeholders contributes high-quality inputs?
A) unions
B) government
C) customers
D) suppliers
Answer: D
Page Ref: 29
Difficulty: Easy
LO: 2-1
42) Which of the following is an outside stakeholder group?
A) shareholders
B) suppliers
C) managers
D) workforce
Answer: B
Page Ref: 29
Difficulty: Easy
LO: 2-1
47) The stakeholder group with ultimate authority over the use of a corporation's resources is
.
A) managers
B) customers
C) government
D) shareholders
Answer: D
Page Ref: 37
Difficulty: Easy
LO: 2-3
49) In the case of a large organization, which of the following options best represents the
accurate chain of command at the corporate management stage?
A) CEO, president, senior vice presidents, executive vice presidents
B) board, CEO, executive vice presidents, presidents
C) CEO, president, executive vice presidents, vice presidents
D) president, divisional managers, executive vice presidents, vice presidents
Answer: C
Page Ref: 38
Difficulty: Easy
LO: 2-3
50) Which of the following persons can be an inside director in an organization?
A) a government official
B) a professional director who holds positions on the board of many companies
C) a full-time employee of the organization
D) an executive of another company that operates in the same industry
Answer: C
Page Ref: 38
Difficulty: Moderate
LO: 2-3
52) Which of the following would be considered to be the lowest level of management in a chain
of command?
A) executive vice presidents
B) functional managers
C) divisional managers
D) vice presidents
Answer: B
Page Ref: 38
Difficulty: Easy
LO: 2-3
53) Which of the following terms best describes the system of hierarchical reporting
relationships in an organization?
A) line of control
B) span of authority
C) matrix of hierarchy
D) chain of command
Answer: D
Page Ref: 39
Difficulty: Easy
LO: 2-3
54) Which of the following employees would be considered to have a line role?
A) sales manager
B) executive vice president of finance
C) R&D director
D) vice president of production
Answer: D
Page Ref: 40
Difficulty: Easy
LO: 2-3
56) Managers who have direct responsibility for the production of goods and services are
considered to be holding a(n) role.
A) staff
B) integrative
C) line
D) distributive
Answer: C
Page Ref: 40
Difficulty: Easy
LO: 2-3
57) Managers who are in charge of a specific organizational function such as sales or R&D hold
a(n) role.
A) distributive
B) line
C) staff
D) integrative
Answer: C
Page Ref: 40
Difficulty: Easy
LO: 2-3
58) Which of the following organizational positions is a part of an organization's top
management team?
A) functional manager
B) executive vice president
C) divisional manager
D) plant supervisor
Answer: B
Page Ref: 40
Difficulty: Easy
LO: 2-3
63) Which of the following is one of the two conditions that lead to a moral hazard problem?
A) the principal possesses more information than the agent
B) the agent has an incentive to pursue goals and objectives that are different from the principal's
C) the principal acts in his own best interest, as opposed to the interests of the other stakeholders
D) the agent is given the authority to allocate scarce organizational resources
Answer: B
Page Ref: 41
Difficulty: Moderate
LO: 2-4
67) As per the Act, CEOs, COOs, and the chief financial officer are required to sign
off on their company's balance statements so they can be held personally and legally liable for
accidental or deliberate mistakes found later.
A) Sarbanes-Oxley
B) Taft-Hartley
C) Walsh-Healey
D) Davis-bacon
Answer: A
Page Ref: 43
Difficulty: Easy
LO: 2-4
68) A manager decides to locate a manufacturing plant in a location that maximizes the overall
benefits to the stakeholders. Which model of ethics is being used by the manager?
A) justice
B) moral rights
C) utilitarian
D) mutual association
Answer: C
Page Ref: 46
Difficulty: Moderate
LO: 2-5
69) A manager chooses to tell affected employees about an impending layoff, despite the damage
this causes to the stock price of the organization. She did this because it was "the right thing to
do." Which model of ethics is she using?
A) justice
B) moral rights
C) utilitarian
D) mutual association
Answer: B
Page Ref: 46
Difficulty: Moderate
LO: 2-5
70) A manager decides to distribute the pool of bonus money equally among all of the
subordinates, even though some performed better than others. Which model of ethics is being
used by him in making this decision?
A) justice
B) moral rights
C) utilitarian
D) mutual association
Answer: A
Page Ref: 46
Difficulty: Moderate
LO: 2-5
71) As per the model of ethics, an ethical decision is one that produces the greatest
good for the greatest number of people.
A) mutual association
B) utilitarian
C) justice
D) moral rights
Answer: B
Page Ref: 46
Difficulty: Easy
LO: 2-5
73) A doctor was banned from practicing medicine because he consistently prescribed
unnecessary procedures. This doctor violated .
A) professional ethics
B) the justice model of ethics
C) individual ethics
D) the utilitarian model of ethics
Answer: A
Page Ref: 48
Difficulty: Easy
LO: 2-5
74) The "tragedy of the commons" illustrates that .
A) the utilitarian model of ethics is the most effective model of ethics
B) all unethical actions are always illegal
C) the rational pursuit of individual self interest results in a collective disaster
D) all the available resources should be equally distributed among all the stakeholders
Answer: C
Page Ref: 50
Difficulty: Moderate
LO: 2-5
76) Behavior that follows accepted ethical rules confers a(n) effect on an individual or
an organization.
A) observer-expectancy
B) framing
C) focusing
D) reputation
Answer: D
Page Ref: 50
Difficulty: Easy
LO: 2-5
77) Which of the following organizations is most likely to commit unethical and illegal acts such
as collusion, price fixing, or bribery?
A) an organization that is introducing a new product in the market
B) an organization that is struggling to survive
C) an organization that is entering into a new market
D) an organization that has a flat and decentralized organizational structure
Answer: B
Page Ref: 51
Difficulty: Easy
LO: 2-5
78) A son of a mobster believes that it is ethical to steal if it is in the best interest of his family.
This view comes from .
A) justice model of ethics
B) professional ethics
C) personal ethics
D) moral rights model of ethics
Answer: C
Page Ref: 51
Difficulty: Easy
LO: 2-5
79) In the long run, an organization that follows unethical practices is most likely to .
A) be more innovative
B) spend less on advertising or managerial salaries
C) be bureaucratized
D) spend more on research and development
Answer: C
Page Ref: 52
Difficulty: Moderate
LO: 2-5
Managers: Managers are the employees responsible for coordinating organizational resources
and ensuring that an organization's goals are met successfully. Top managers are responsible for
investing shareholder money in resources to maximize the value of an organization's future
output of goods and services.
An attempt to maximize stockholder wealth may involve taking risks into uncharted territory and
making capital investments in R&D that may bear fruit only in the long term as new inventions
and discoveries generate new products and a stream of new revenues. Managers, however, may
prefer to maximize short-term profits because that is the goal on which they are evaluated by
their peers and by stock market analysts who do not take the long-term view.
Also, because managers' salaries are closely correlated with organizational size, managers may
prefer to pursue low-risk strategies even though these may not maximize return on invested
capital.
Page Ref: 35
Difficulty: Moderate
LO: 2-2
85) Explain why shareholders are considered the stakeholder group with ultimate authority over
the use of a corporation's resources.
Answer: The stakeholder group with ultimate authority over the use of a corporation's resources
is shareholders. Legally, they own the company and exercise control over it through their
representatives, the board of directors. Through the board, shareholders delegate to managers the
legal authority and responsibility to use the organization's resources to create value and to meet
goals. Accepting this authority and responsibility from shareholders and the board of directors
makes corporate managers accountable for the way they use resources and for how much value
the organization creates.
Page Ref: 37
Difficulty: Moderate
LO: 5-3
Test Bank for Organizational Theory Design and Change 7th Edition by Jones
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Solutions Manual for Organizational Theory Design and Change 7th Edition by Jones
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http://downloadlink.org/p/solutions-manual-for-organizational-theory-design-and-
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