Deck 12: Managing New Ventures For Growth

Question 1

The type of conflict based on different perceptions of an idea is known as cognitive conflict.

Answer 1

True

Question 2

Highly motivated employees will perform at a high level regardless of the skills they have.

Answer 2

False

Question 3

A __________ was conducted and it was determined that a certain job required a Bachelor's Degree in Accounting with a minimum of a 3.0 GPA.

A) job description
B) job analysis
C) structured interview
D) task analysis
E) job design

Answer 3

B

Question 4

Conditions under which available rewards are divided among group members according to what each has contributed to the group is known as distributive justice.

Question 5

The authors of the textbook say that outsourcing the hiring of employees should not be done.

Question 6

Competency profiling is not legal to use in deciding which candidate to hire.

Question 7

Trust based upon accepting and understanding the other person's wants is known as identification-based trust.

Question 8

It is common for an entrepreneurship to have more detailed job descriptions and job analyses than larger companies because smaller businesses tend to not have all the formal training and therefore rely more on the paperwork.

Question 9

The references of a job applicant should be checked because some applicants state that they have education or experiences that they do not have.

Question 10

Setting goals can be one way to increase motivation.

Question 11

Feedback has been found to be not important to make a goal more motivational.

Question 12

People who become entrepreneurs tend to be more self-directed than are many other people.

Question 13

In expectancy theory,the belief that good performance will be rewarded is known as valence.

Question 14

Competency profiling is defined as determining what experience,skill,knowledge,and experience are needed to perform well in a job.

Question 15

Traditional interviews are the most widely-used selection technique in most organizations.

Question 16

After the hiring process,the next important thing is to make sure that trained employees stay with the company.

Question 17

One base of conflict is that people tend to see their own ideas as objective and the ideas of others as irrational.

Question 18

If an employee believes that there is a strong tie between effort,performance,and rewards,his or her motivation will be high.

Question 19

The personal interview tends to be the most accurate instrument used to hire people because it results in selecting the person with the best skills for the job.

Question 20

There is evidence that the personal interview results in selecting the person who is most qualified rather than the one who is most attractive or similar to the interviewer.

Question 21

Which of the following is an important criterion to be considered when setting goals for employees.

A) Goals must be challenging.
B) Feedback must be given so individuals know their status in obtaining their goals.
C) Goals must be possible to achieve.
D) All employees should accept the goals.
E) All of the above

Question 22

Due to Carly's influence on increasing profits as manager of the Marble Flooring Division,her company decided to increase her salary from $60,000 per year to $70,000 per year. This is an example of which of the following reward systems?

A) Stock ownership plan.
B) Merit pay.
C) Continuance commitment.
D) Awards.
E) Non-monetary reward plan.

Question 23

Which of the following candidates should be selected for the job?

A) The one who is most likely to succeed on the job.
B) The one whose knowledge, skills, and abilities are the closest match to the job requirements.
C) The most qualified one.
D) The one who is most likely to fit in with the organizational culture.
E) All of the Above.

Question 24

Which of the following candidates for a job would tend to be most likely to be chosen in the typical interview?

A) A candidate who is very different from the interviewer, but who has good skills for the job.
B) A candidate who is attractive to the interviewer.
C) The most qualified candidate.
D) A candidate who is not good at impression management, but has reasonably good skills for the job.
E) All of the above have an equal chance of being hired when a typical interview is used.

Question 25

Which of the following interview structures is most valid in determining the most qualified applicant?

A) Standard employment interviews.
B) Traditional interviews.
C) Highly-structured interviews.
D) On-the-spot interviews.
E) Impromptu interviews.

Question 26

According to Expectancy Theory,which of the following conditions help to increase motivation?

A) People must see a link between effort and performance.
B) People must believe that good performance will be rewarded.
C) People must want the rewards that are being offered.
D) All of the above must be present.
E) Only choices a and c are correct.

Question 27

According to the authors,which of the following characteristics should goals have in order to be motivational?

A) Challenging.
B) Unattainable.
C) General rather than specific.
D) Set by the people themselves.
E) None of the above are true.

Question 28

Selection tools must have which of the following in order to be useful when hiring for a position?

A) Low cost.
B) Be outsourced.
C) Validity.
D) Must be used by a professional human resources person.
E) None of the above.

Question 29

Lisa Runo,a local broker,is having trouble getting her employees to achieve their individual goals. Consequently,she decided to give incentives to those who reach their goals. Incentives are a way to increase __________ among employees.

A) company vision
B) motivation
C) employee turnover
D) employee relations
E) sincerity

Question 30

In Expectancy Theory,the belief that good performance will be rewarded is known as

A) expectancy.
B) valence.
C) instrumentality.
D) fairness.
E) procedural justice.

Question 31

Which of the following is not a true statement addressing how entrepreneurs can maintain motivation among employees?

A) Entrepreneurs should update employees on training needed to perform the job well.
B) There must be a close link between performance and rewards in order to keep employees on track to achieving their goals.
C) Wanted rewards might not be monetary.
D) Training should be given to increase knowledge on the job to maintain motivation.
E) Determining how to use new equipment should be left up to the employees in order to be a challenge.

Question 32

Caterpillar Inc.distributes 2% of its company profits to employees every year. This performance plan is known as

A) company-wide plan.
B) profit sharing plan.
C) merit pay plan.
D) employee stock ownership.
E) employee bonuses.

Question 33

Which of the following is a problem with the personal interview when used to select people to hire?

A) Interviewers tend to make their decisions before they get necessary information about the candidate.
B) Interviewers tend to ask different questions of each candidate so it is difficult to compare candidates.
C) The personal interview has high validity.
D) Choices a and b are correct.
E) Choices a and c are correct.

Question 34

A business has many employees who like flexible working hours. Because the flexible working hours do not interfere with good performance,the manager decides to use flexible working hours as a reward. In this situation,flexible working hours are what type of reward?

A) Physical fitness reward.
B) Merit pay reward.
C) A control barrier reward.
D) An affective commitment reward.
E) A nonmonetary reward.

Question 35

Which of the following tends to have the highest validity in hiring someone for a job?

A) Structured interview.
B) Normal personal interview.
C) Recommendation of a relative.
D) Personal statement from the job applicant.
E) Reference from the candidate's parents.

Question 36

A part of expectancy theory of motivation is defined as the belief an employee holds that expending effort will improve performance. This is known as

A) instrumentality.
B) expectancy.
C) valence.
D) affective commitment.
E) continuance commitment.

Question 37

Rewarding the "employee of the month" with the closest parking spot could be a way to...

A) get around budget cuts.
B) reward employees with something they really want.
C) maintain motivation.
D) encourage individuals to achieve goals.
E) All of the Above.

Question 38

Why might very talented individuals who are well qualified to work for a larger organization with more job security take a large risk when working for a new venture?

A) A larger firm would have more flexible work hours.
B) The new venture would be a smaller, more personal work environment.
C) A smaller firm would offer greater potential for rewards.
D) A larger firm would have better benefits.
E) A larger firm would have more realistic goals.

Question 39

Mark Ripa doesn't want to leave his job because he has too much time invested at his organization and he would lose 10% of his pension plan if he leaves. This is known as which type of employee retention strategy?

A) Organizational commitment.
B) Continuance commitment.
C) Affective commitment.
D) Normative commitment.
E) Employee stock ownership plans (ESOPs).

Question 40

Related to goal setting,which of the following statements is related to the highest performance from employees?

A) Employees are told, "Do your best."
B) Employees are given stretch goals.
C) No statement to employees is made.
D) All of these situations would result in equal performance.
E) None of the above are true.

Question 41

The idea that leaders must match their leadership style to the situation is known as the

A) distributive approach.
B) expectancy theory.
C) contingency approach.
D) affective style approach.
E) None of the above.

Question 42

Which type of leadership is associated with intellectual stimulation,individualized consideration,and inspirational motivation?

A) Transactional.
B) Autocratic.
C) Affective.
D) Social identification.
E) Transformational.

Question 43

Explain why a structured interview can be more accurate in selecting the right candidate for a job,as compared to a regular interview.

Question 44

Assume that an employee works for an entrepreneur and believes that he must "put in a fair day's work" to earn the pay. This situation represents a

A) relational contract.
B) valence reward.
C) justice deal.
D) transactional relationship.
E) third-stage arrangement.

Question 45

Assume that you are an entrepreneur and you want to reward your employees by giving them a certain percentage of the profits that the business earns. This is known as

A) employee stock ownership plan.
B) stock option.
C) free-riding.
D) profit sharing.
E) None of the above are correct.

Question 46

In order for a transaction to finalized,a customer must present proper identification. However,the customer forgot his wallet at home. The manager holds the items and trusts that the customer will return with the proper identification because he won't be able to get the needed items unless he returns. This trust that the customer will come back is known as

A) basic trust.
B) identification-based trust.
C) customer trust.
D) calculus-based trust.
E) None of the above.

Question 47

An entrepreneur uses raises in salary and bonuses to influence employees. This is associated with what type of leadership?

A) Transformational.
B) Transactional.
C) Social identification.
D) Competency profiling.
E) Structured interviews.

Question 48

A reward that gives the recipient the right to purchase shares of the company at a given price is known as

A) distributive justice.
B) procedural justice.
C) cash bonus.
D) stock option.
E) expectancy.

Question 49

An entrepreneur believes that her employees will act in the ways they promised because they know they will be punished if they do not,the manager is relying upon

A) identification-based trust.
B) calculus-based trust.
C) justice-based trust.
D) personal-based trust.
E) None of the above are true.

Question 50

Expectancy theory refers to

A) a leadership approach.
B) a method of handling conflict.
C) a method of building trust.
D) a method of motivation.
E) None of the above.

Question 51

Which leadership style is associated with a higher chance that the leader's decisions will be accepted better by subordinates?

A) Autocratic.
B) Participative.
C) Quality of decision.
D) Transactional.
E) Intellectual.

Question 52

Which type of conflict contains disliking or anger?

A) Affective.
B) Cognitive.
C) Expectancy.
D) Procedural.
E) Fairness.

Question 53

Assume that your own values match the values of the company for which your are working. Because of that,you probably are not likely to leave this company. What type of commitment does this represent?

A) Continuence.
B) Affective.
C) Normative.
D) Distributive justice.
E) None of the above are correct.

Question 54

Assume that people in a business believe that the person who distributed the rewards did not explain how it was done very well. This is related to

A) procedural justice.
B) interactional justice.
C) validity.
D) instrumentality.
E) merit pay.

Question 55

Define transformational leadership. Identify and explain the characteristics that are associated with transformational leadership.

Question 56

Explain why feedback is a necessary part of goal setting in order to make goal setting a good motivational tool.

Question 57

Which of the following is good advice when negotiating to resolve a conflict?

A) use a win-lose approach.
B) Try to understand the real issues.
C) Do not broaden the scope of the issues considered.
D) Be secretive so the other side does not gain an advantage.
E) If you worry about the other side losing face, you will lose.

Question 58

The authors of the textbook say that transformational leaders tend to produce effects that seem to be contradictory. Identify these contradictions and explain how they arise.

Question 59

Explain why motivation by itself is not sufficient to obtain good performance.

Question 60

Explain why it might be good for an entrepreneur to use an outside company to select people for the business.