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OB Ch. 2

1. Which of the following is NOT one of the major challenges that managers must deal with in order to remain competitive?

a. globalizing the firm’s operations to compete in the global village
b. managing ethical behavior, good character, and personal integrity
c. managing a diverse workforce
d. anticipating changes in foreign currency valuations

2. Globalization implies all of the following except:

a. the world is free from national boundaries
b. a borderless world
c. competition between workers from other countries
d. an organization’s nationality is held strongly in consciousness

3. A transnational organization is one where:

a. an organization’s nationality is held strongly in the consciousness of managers even though the organization competes on a global scale
b. the global viewpoint supersedes national issues
c. the global and national interests are linked in an overriding perspective
d. a prevalent ethnic viewpoint begins to be held strongly in the consciousness of managers

4. Given the increasing attractiveness of U.S. business ventures in China, a major challenge for Western managers will be understanding the Chinese practice of guanxi, which is:

a. the strong use of rewards and punishment in the workplace
b. the use of personal connections to conduct business
c. the practice of group members evaluating the performance of individual group members
d. the tendency to negotiate small but specific agreements in order to interact effectively

5. Kentucky Fried Chicken found success in China when it:

a. identified a broker in Singapore to identify sources for Asian venture capital
b. put together a consortium of Western and Asian entrepreneurs to begin the franchise in China
c. developed a joint venture with government bodies in China
d. developed an alliance with another Asian fast-food restaurant, such as the Japanese or Taiwanese, and share the risk in China

6. Many U.S. and Canadian firms have located manufacturing plants in Mexico to take advantage of lower labor costs. Additionally, many tariffs on U.S. exports have been eliminated. These global changes occurred because of:
a. the European union
b. GATT agreements
d. Perestroika
The work of Hofstede is important because his studies revealed that more differences in work-related attitudes can be explained by:
a. gender
b. profession
c. culture
d. age
8. Hofstede’s cross-cultural research found that Japanese managers valued:
a. high risk taking
b. group decisions
c. a short-time perspective
d. individualism
9. Hofstede’s work casts doubt on the:
a. ability of cross-cultural attitudes to predict job-related attitudes
b. use of masculinity versus femininity as an orientation that has cultural variation
c. use of time as an orientation that differs across cultures
d. the universal applicability of U.S. management theories
An expatriate manager is one who:
a. has left a transnational organization to work for a competitor
b. works within a foreign-owned company within their own country
c. works in a country other than his or her home country
d. has given his or her allegiance to a transnational type of organization over a more national/domestic perspective
In the Business Guide to Cultural Differences provided by the textbook, which of the following statements would be most accurate regarding the culture of Japan?
a. It is considered rude to be late.
b. Punctuality is not always a priority.
c. It is customary to make appointments for approximate times of the day rather than precise hours.
d. Women should expect to wear hosiery and high heels.
Gifts are not usually a requirement in business dealings, though presenting a small gift will generally be appreciated as gesture of goodwill in which of the following cultures?
a. Mexico
b. Japan
c. Saudi Arabia
d. Canada
In which of the following cultures should you avoid directly saying no?
a. Japan
b. Saudi Arabia
c. Mexico
d. Canada
14. Which of the following was NOT recommended as a technique for increasing the sensitivity of differences between people from various cultures?
a. describing one another’s culture
b. cultural sensitivity training
c. role analysis technique (RAT)
d. cross-cultural task forces or teams
Attention to diversity has particularly increased in recent years because of:
a. the use of telecommunications
b. the opportunity for use of lower cost labor in other countries
c. the changing demographics of the working population
d. legislation
According to your text, African-Americans and Hispanic-Americans are likely to be at a disadvantage within organizations because:
a. they are under-represented in declining occupations
b. they tend to live in a small number of large cities that are facing severe economic difficulties
c. available jobs in the future will require less skill than in the past
d. the proportion of African-Americans and Hispanic-Americans who are qualified for higher level jobs are often higher than the proportion of qualified whites and Asian-Americans
The globalization of business and changing demographic trends will present organizations with a tremendously culturally diverse workforce which represents the risk that:
a. prejudices and stereotypes will prevent managers and employees from developing a synergy that can benefit the organizations
b. families will not be left intact
c. values will begin to erode
d. opportunities will not be available
Which of the following statements/statistics about women in the workforce is incorrect?
a. The number of women in the labor force increased from 31.5 million in 1970 to 65 million in 2008.
b. Women 49 percent of all doctorates and 60 percent of master’s degrees.
c. There has been little increase in the number of women CEOs.
d. On average, women earn 90% of what men earn from work.
Which statement regarding the glass ceiling is most correct?
a. The glass ceiling has been recently found to apply equally to males and females.
b. The glass ceiling is a barrier that has been traced to a lack of ability.
c. The glass ceiling, like Cinderella’s glass slipper, has resulted in a temporary movement of women into political leadership positions throughout the world.
d. The glass ceiling is a transparent barrier that keeps women from rising above a certain level in organizations.
With respect to the multiple roles assumed by women, which of the following statements is FALSE?
a. Men have been favorably predisposed to adopt the sharing of domestic responsibilities.
b. Working women often find themselves in the position of caring for the elderly parents.
c. Arranging for child care is typically the woman’s responsibility.
d. Women have been quick to adopt the provider role.
Corporations that shatter the glass ceiling have many practices in common; however, these practices do NOT include:
a. upper-management support for the advancement of women
b. women representation on committees that address strategic business issues
c. targeting women for participation in executive education
d. systems that identify women for advancement with certain quotas in place
Which of the following competencies was NOT indicated as important to the development of an international career?
a. integrity
b. insightfulness
c. risk taking
d. competence in several foreign languages
Individuals born between 1965 and 1976 are known as the:
a. baby boomers
b. swing generation
c. Generation Y
d. Generation X
Which generation of workers tends to be impatient, wants short-term gratification, and puts family before work?
a. silent generation
b. Generation Y
c. Generation X
d. baby boomers
Which generation of workers tends to strive for moral rights in the workplace and take a more activist position regarding employee rights?
a. baby boomers
b. silent generation
c. Generation Y
d. Generation X
A manufacturer of products for outdoor enthusiasts offers flextime and the opportunity to take up to four months of unpaid leaves of absence. This type of organization would most appeal to which generation?
a. post Vietnam War babies
b. baby boomers
c. depression era generation
d. Generation X
The Americans with Disabilities Act defines disabled as:
a. persons with permanent physical and mental problems
b. anyone with a physical or mental impairment that substantially limits one or more major life activities
c. individuals with physical impairments only
d. those who cannot work
The unemployment rate of disabled Americans is estimated to exceed:
a. 20%
b. 30%
c. 40%
d. 50%
Emphasizing the use of inclusive language such as “partner” instead of “spouse” would be directed at what type of diversity?
a. culture
b. social status
c. sexual orientation
d. age
The major difference between prejudice and discrimination is:
a. prejudice has been shown to have more of an impact on productivity than discrimination
b. discrimination has been shown to have more of an impact on productivity than prejudice
c. prejudice refers to behavior and discrimination refers to an attitude
d. prejudice refers to an attitude and discrimination refers to behavior
Assume you are the manager of a department with a diverse work group, but white males comprise the largest subgroup. Many of the white males resent having to work along side of female and minority employees who have less seniority and work experience but are paid the same. Several conflicts and incidents have taken place between the white males and others that have disrupted the workplace. Which of the following approaches would be more appropriate and effective in dealing with this situation?
a. Fire the white male perpetrators.
b. Extend preferential treatment to female and minority employees.
c. Urge female and minority employees to take legal action against those who have caused problems.
d. Indicate that discriminatory and other inappropriate behavior will not be tolerated and initiate a series of meetings to address the problems and encourage open and frank discussion of the issues.
Which statement best captures the spirit of managing diversity?
a. It is being a good corporate citizen.
b. It is complying with affirmative action.
c. It is assimilating women and minorities into a dominant male culture.
d. It is a painful examination of hidden assumptions that employees hold.
Which of the following is considered a key benefit of diversity?
a. cohesiveness
b. flexibility and adaptation
c. less time in making decisions
d. less thinking that is considered critical
Which of the following is NOT a classification for ethical theories?
a. humanitarian
b. rule-based
c. consequential
d. cultural
An ethical theory that emphasizes the nature and characteristics of an act is:
a. cultural based
b. motive-based
c. consequence-based
d. rule-based
A well-known consequential theory which suggests that right and wrong is determined by the consequence of the action and that we should maximize the most good for the greatest number of people is:
a. cultural relativism
b. universal moralism
c. utilitarianism
d. rule-based theory
Corporations and business enterprises tend to subscribe to:
a. cultural relativism
b. universal moralism
c. consequential ethics
d. rule-based ethics
Crude comments or sexual jokes and behaviors that disparage someone’s sex or convey hostility is considered which type of sexual harassment?
a. sexual coercion
b. exploitation
c. gender harassment
d. sexual abuse
The implicit or explicit demands for sexual favors by threatening negative job-related consequences or promising job-related rewards is considered:
a. gender harassment
b. biased sexual force
c. sexual coercion
d. sexual exploitation
Which of the following would not be considered sexual harassment?
a. A male department head is propositioned by a female employee who has bid for a different job that carries a high rate of pay.
b. When congratulating employees for their good work, a male supervisor pats male workers on the shoulder and female workers on their behinds.
c. A female office employee frequently, in a joking fashion, suggests to certain male co-workers that they go to a motel during the lunch hour.
d. In trying to make an important point when issuing job instructions, a male supervisor puts his hand on the employee’s shoulder. He does this with both male and female employees.
A female employee is issued a written reprimand when returning late from lunch. A male employee in the same department returns late and is not disciplined. This issue represents a question of:
a. sexual harassment
b. procedural justice
c. uniform standards
d. distributive justice
42. When the Japanese questioned the salaries of American CEOs during a time when many companies were having difficulty and laying off workers, they were making their judgments based upon:
a. utilitarian justice
b. distributive justice
c. procedural justice
d. rule-based justice
Whistle-blowing is:
a. an example of white-collar crime
b. legally protected
c. an illustration of distributive justice
d. unethical
The obligation of an organization to behave in ethical ways is known as:
a. social environmentalism
b. organizational morality
c. social responsibility
d. ethical imperative
Match the following:
a. A cultural orientation in which individuals belong to tightly knit social frameworks.
b. The concept of borderless marketplace.
c. The acceptance of unequal distribution of power.
d. A business firm that operates in numerous countries and employs a multicultural workforce.
e. An American business official who works for a U.S. subsidiary in Spain.

1. Transnational

2. Power Distance

3. Globalization

4. Expatriate

5. Collectivism

Match the following:
a. An act that defines a person with a disability as “anyone possessing a physical or mental
impairment that substantially limits one or more major life activities.”
b. Those born after 1976, also referred to as Generation Y.
c. Individual differences present in the workforce.
d. Individuals born between 1946 and 1964.
e. An artificial barrier that prevents women from advancing above a certain organizational
f. Individuals born between 1965 and 1976.6. Baby boomers
7. Americans with Disabilities Act
8. The baby boomlet
9. Glass ceiling
10. Baby busters
11. Diversity
Match the following:
a. A collection of rule-based guides to ethical behavior.
b. An ethical perspective that focuses on results of behavior.
c. The collective ethical conduct of an organization.
d. The theory of ethics that argues for local standards on a set of standards for each
e. Fairness of outcomes received by organizational members.
f. Suggests that right and wrong is determined by the consequences of the action.
12. Distributive Justice
13. Social Responsibility
14. Cultural Relativism
15. Bible
16. Consequential Theory
17. Utilitarianism
Match the following:
a. An organizational informant or someone who reports corporate wrongdoing.
b. Fairness of the process and/or criteria used to allocate outcomes.
c. A credo or recorded set of accepted and ethical behavior.
d. An organization’s obligation to behave ethically in its social environment.
e. Fairness of outcomes individual receive.
18. Social responsibility19. Procedural Justice
20. Distributive Justice
21. Code of Ethics
22. Whistle-blower
. Briefly discuss the issues an organization would want to consider or understand if it were interested in
a business venture within China.
Chinese managers’ business practices have been shaped by the Communist party, socialism, feudalistic
values, and guanxi (the practice of building networks for social exchange). In China, the family is
regarded as being responsible for a worker’s productivity, and in turn, the company is responsible for
the worker’s family. Chinese managers have very little experience with rewards and punishments, and
are reluctant to use them in the workplace. Americans would need to build their own networks,
understand the Chinese chain of command, and negotiate slow, general agreements in order to interact
2. Describe American business culture using Hofstede’s dimensions of cultural differences.
The U.S. business and economic culture emphasizes individualism, weak to moderate power distance,
low to moderate uncertainty avoidance (or moderate risk taking), masculinity, and short-term time
What are some (mention at least five) of the significant workforce composition changes that have been
taking place since the second World War?
The number of women in the workforce has almost doubled since 1970, increasing from 31.5 million
to 64 million. In 2004, women made up almost 60% of labor force. Women are also becoming better
prepared to contribute in organizations than ever before with 52% of master degrees, 32% of
doctorates, and 50% of all undergraduate degrees being awarded to women. In 2004, 58% of U.S.
women were employed. The most rapidly expanding minority segment of the workforce is Hispanic;
Asian Americans are also rapidly increasing their workforce numbers. Finally, the workforce is aging
for two reasons: the population is aging and people are working longer as there is not mandatory
retirement age.
4. Are legal requirements and ethical standards synonymous?
They are close but not the same. Staying just within the law could also border on being unethical. In
other words, a person could be found to have met legal technical requirements but their behavior might
be considered unacceptable from an ethical viewpoint.
Imagine that you are working for an organization that produces a highly controlled and experimental
drug that is targeted for the treatment of a rare virus. Unfortunately, someone close to you has
contracted the disease, and it appears that the only hope this person has is to obtain the experimental
drug. At this time, however, there is absolutely no way you could obtain the drug under legal means.
Using each of the three classifications of ethical theories (consequential, rule-based, and cultural),
briefly describe what you would do.
Consequential – Under this perspective you could argue that the greatest good will be served (saving
your friend), and you may rationalize stealing the drug to save the life. Here, good consequences do
not always follow from right actions. Rule-based theory – Under this perspective the character of the
act would not allow you to steal the drug. The character of the act, not the effect, is the driving force.
Under Kant’s categorical imperative, it simply wrong to steal, a necessary universal standard. The
self-interest of human beings is God’s providence, or there are rule-based guides to moral behavior.
Cultural relativism – Here, you would do what is right given the context. If a more consequential base
was the norm, then you would likely take the drug.

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