Download as pdf or txt
Download as pdf or txt
You are on page 1of 19

Better Business 5th Edition Solomon

Solutions Manual
Visit to download the full and correct content document: https://testbankdeal.com/dow
nload/better-business-5th-edition-solomon-solutions-manual/
CHAPTER 7: BUSINESS MANAGEMENT AND ORGANIZATION

CHAPTER OPENER

Chapter 7 introduces students to the topic of management. Students will explore the
various levels of management and the skills managers need in order to be successful. The
functions of management—planning, leading, organizing, controlling/monitoring—will
be discussed, along with different types of plans developed and implemented by
managers—strategic plans, tactical plans, operational plans, and contingency plans.

Finally, the concept of quality as a measurement of performance in an organization will


be explored.

DETAILED LECTURE OUTLINE

I. The Foundations of Management


A. Business Management
1. What exactly is management?
a. Management is the process of working with people and resources to
accomplish the goals of an organization.
2. What are the four functions of management?
a. A manager performs four primary functions: planning, organizing,
leading, and controlling/monitoring. See Figure 7.1.
B. Levels of Management
1. What are the different levels of management?
a. Within a company, there are different levels of managers, each with
increasing levels of responsibility. See Figure 7.2.
2. What do top managers do?
a. Top managers are the corporate officers and are responsible for an
organization as a whole.
b. They develop the “big picture” for a company: its long-term goals and
strategic vision.
3. What do middle managers do?
a. Middle managers manage individual divisions or segments of an
organization and are responsible for creating the specific plans to
implement the strategic vision set by the firm’s top managers.
b. Included in this management layer are division managers of the firm’s
functions, such as finance, marketing, sales, operations, and information
technology, and team leaders who are responsible for cross-functional
groups of employees.
4. Are the people who supervise the day-to-day operations also managers?
a. The bottom of the managerial pyramid includes first-line managers, who
supervise individual employees who carry out the day-to-day operations of
a company.
5. Does every company have all these different managers?

Copyright © 2018 Pearson Education, Inc. Page 1


a. Not all companies have all three layers of management; some have more,
and some have fewer.
C. The Skills of Successful Managers
1. What skills should a manager have?
a. A successful manager needs to possess the following types of skills:
i. Conceptual skills—The ability to think abstractly
ii. Technical skills—The specific knowledge for the discipline
iii. Time management skills—The ability to be effective and productive
with one’s time
iv. Interpersonal skills—The ability to motivate and communicate easily
with others
v. Decision-making skills—The ability to analyze options and implement
the best plan of action
2. What do we mean by conceptual skills?
a. Conceptual skills include the ability to think abstractly and to picture the
organization as a whole and understand its relationship to the business
community.
b. This also includes understanding the relationships among the parts of an
organization itself.
3. What technical skills do managers need?
a. Technical skills include the abilities and knowledge that enable
employees to carry out the specific tasks required of a discipline or a
department.
b. Managers must also know how to perform or at least have a good
understanding of the skills required of the employees they supervise.
4. What time management skills does it take to succeed as a manager?
a. Managers who possess time management skills are able to be effective
and productive with their time.
5. Why are interpersonal skills important for managers?
a. Interpersonal skills enable managers to interact with other people to
motivate them and develop their trust and loyalty and get them to work
together well.
6. Why do some people consistently make better decisions than other people?
a. Decision-making skills involve the ability to identify and analyze a
challenge, identify and examine the alternatives, choose and implement
the best plan of action, and evaluate the results.
b. When making important decisions, managers often go through a formal
decision-making process similar to that shown in Figure 7.3.

II. The Functions of Management: Planning


A. Definitions
1. Planning is the process of establishing goals and objectives and determining
the best ways to accomplish them.
2. Goals are broad, long-term accomplishments an organization wants to achieve
within a certain time frame.
3. Objectives are short-term targets designed to help achieve the goals.

Copyright © 2018 Pearson Education, Inc. Page 2


B. Strategic Planning
1. What is the highest level of planning in an organization?
a. A strategic plan is the main course of action created by top-level
managers.
b. A strategic plan helps to answer three questions:
i. Where is the company going?
ii. What should the company focus on?
iii. How will the company achieve its goals?
2. How is a strategic plan developed?
a. There are several steps to the process of developing a strategic plan, as
shown in Figure 7.4.
C. Vision and Mission Statement
1. What helps define the direction of a business?
a. A vision identifies what the business wants to be in the future.
2. What helps define the purpose of a business?
a. A mission statement is a description of an organization’s current purpose,
basic goals, and philosophies.
b. A mission statement not only helps management remain focused but also
lets employees understand the core values of the company.
3. What makes an effective mission statement?
a. If employees feel an owner’s passion for the business through the mission
statement, it has a positive impact.
4. What are some benefits of well-defined vision and mission statements?
a. Keeping management on track by ensuring strategies are consistent with
the organization’s goals
b. Inspiring employees
c. Giving investors insight into the values of the organization
5. Are mission statements only for businesses with a profit?
a. No, mission statements are useful for not-for-profit companies as well.
6. Where can I find a company’s vision and mission statements?
a. Both the vision and mission statements are usually found on an
organization’s website.
D. SWOT Analysis
1. How does the management team begin to move the company toward
achieving its vision?
a. Once a company’s vision and mission statements have been articulated,
the firm’s managers must assess the company’s strengths and weaknesses
as well as its position among its competitors.
2. What is a SWOT analysis?
a. The acronym SWOT stands for the following:
i. Strengths
ii. Weaknesses
iii. Opportunities
iv. Threats
b. A SWOT analysis is an analysis of the strengths, weaknesses,
opportunities, and threats a company is facing. See Figure 7.5.

Copyright © 2018 Pearson Education, Inc. Page 3


c. When evaluating a company’s internal strengths and weaknesses,
managers have to analyze a company’s internal resources.
d. To evaluate the threats and opportunities facing a company, managers
assess various external elements.
3. What happens after a SWOT analysis is completed?
a. After conducting a SWOT analysis, managers establish a set of goals and
objectives based on the information.
b. The acronym SMARTER is helpful when designing and wording goals
(see Figure 7.6):
i. Specific
ii. Measurable
iii. Acceptable
iv. Realistic
v. Timely
vi. Extending
vii. Rewarding
E. Tactical and Operational Planning
1. How do managers decide how to execute the strategic plan?
a. Middle managers generate tactical plans that specifically determine the
resources and the actions required to implement particular aspects of a
strategic plan.
b. Whereas strategic plans have a long-term focus, tactical plans are made
with a one- to three-year horizon in mind.
2. How is the tactical plan translated into instructions for employees?
a. The specifics of carrying out tactical plans are operational plans.
b. In an operational plan, first-line managers precisely determine the
process by which tactical plans can be achieved.
F. Contingency Planning
1. What if unforeseen events occur?
a. Contingency planning is a set of plans that ensures that an organization
will run as smoothly as possible during an unexpected disruption. See
Figure 7.7.
2. How can planning help companies weather such unexpected events?
a. Part of contingency planning includes how a company will communicate,
both internally and externally, with all of its stakeholders during a crisis.
b. Contingency planning also involves determining what departments within
a company are vital to the immediate needs of the organization when an
unexpected crisis occurs.
c. It is also important to ensure that the plans are tested and that key
individuals know exactly what is expected of them.

III. The Functions of Management: Organizing


A. Organization Structures
1. How do managers put their plans into action?

Copyright © 2018 Pearson Education, Inc. Page 4


a. Organizing is the process of structuring the capital, personnel, raw
materials, and other resources to carry out a company’s plans in a way that
best matches the nature of the work.
2. How do companies document the structure of the organization?
a. An organization chart shows how groups of employees fit into the larger
organization structure. See Figure 7.9.
b. The organization chart is a visual representation of several ideas that
reflect the structure of the company.
i. The span of control of a specific position is the number of employees
being supervised by a specific person.
ii. Departmentalization consists of the decisions made to structure the
company into smaller groups.
3. How is power distributed in an organization?
a. There are two common approaches:
i. In a vertical organization (or a tall organization), the power belongs
to a few, and most people are in positions in which they report to a
supervisor.
a.) Decision making is centralized.
ii. In a horizontal organization (or a flat organization), power is
distributed, with many people organized in teams or groups.
a.) Decision making is decentralized and spread out across many more
people.
b. Figure 7-10 illustrates the basic differences between vertically structured
organizations and horizontally structured organizations.
4. What are the pros and cons of vertical organization?
a. Integrating functions and divisions is not always easy because
communication and decisions have to travel up and down long chain-of-
command lines.
b. However, it has its benefits because there is ultimately one person in
charge and a clear point of authority for decision making.
5. What are the pros and cons of horizontal organization?
a. The benefit of a horizontal organization is that each team has more
responsibility for the outcome of its work.
b. Because there are fewer layers of managers, approvals from them can be
sought and received much faster.
c. Horizontal structures have been deemed the model for the knowledge age.
B. Changing Structures
1. Does a company’s organizational structure ever change?
a. Yes, sometimes when companies have grown so large that their product
lines, geographic regions, or manufacturing processes can become difficult
to manage, so the firms restructure from a vertical organization to a
horizontal one.
C. Alternative Organizational Structures
1. What is line and staff organization?
a. Most companies begin with a line organization, in which one position has
direct control of all the departments under it.

Copyright © 2018 Pearson Education, Inc. Page 5


b. As companies grow, they sometimes shift to an organization that creates
staff departments, which interact with and advise other departments but
do not have authority over them.
c. This more complex set of managerial relationships is called line and staff
organization.
2. What is a matrix organization?
a. A matrix organization is a type of structure in which people are pooled
into groups by skills and then assigned to projects as needed.
3. What is an inverted organization?
a. In an inverted organization, managers must answer, or be accountable, to
their employees.
b. The goal of an inverted organization is to enable, encourage, and empower
employees to do whatever they do best.
4. What organization works across multiple companies?
a. A network organization is a collection of independent, mostly single-
function firms that together produce a product or service, instead of one
company being responsible for all functions.
b. Operating with a network structure requires that companies:
i. be highly flexible and innovative
ii. be able to respond quickly to threats and opportunities

IV. The Functions of Management: Controlling


A. Controlling to Stay on Course
1. Why does a company need to adapt to stay on course?
a. Controlling (also called monitoring) is the process by which managers
measure performance and make sure the company’s plans and strategies
are being or have been properly carried out.
B. Control Strategies
1. How is moving toward the corporate vision measured?
a. Most companies have control systems that help measure how well the
plans they put in motion are working.
b. In general, the control system forms a cycle, as shown in Figure 7.11.
2. Are financial, production, and sales measures the only tools for assessing
performance?
a. No. Another measure of performance is quality—the goods or services a
company provides must meet and exceed customer expectations.
b. Many managers use total quality management (TQM), an integrated
approach that focuses on quality from the beginning of the production
process up through the final monitoring to detect and correct problems.
3. What are the basic tools managers use for monitoring quality?
a. There are seven basic tools managers use to monitor quality-related goals:
i. Check sheet—A simple sheet recording the number of times certain
product defects occur. See Figure 7.12A.
ii. Control chart—A graph that shows the average and fluctuations of a
process being monitored to determine whether it is behaving within the
limits of proper functioning. See Figure 7.12B.

Copyright © 2018 Pearson Education, Inc. Page 6


iii. Histogram—A graph that displays the count of the number of times a
specific event occurs. See Figure 7.12C.
iv. Pareto chart—A combination bar and line graph that shows different
categories of problems and the total (cumulative) number of problems.
See Figure 7.12D.
v. Scatterplot—A graph that displays the values of two variables to see if
there is a relationship between them. See Figure 7.12E.
vi. Run chart—A graph that displays the value of some data across a
specific set of dates. See Figure 7.12F.
vii. Cause-and-effect diagram—Also called a fishbone diagram, this
illustrates all of the contributing factors in the product design that
might lead to faulty production. See Figure 7.12G.
4. What is the Six Sigma strategy for quality?
a. Six Sigma is a statistically based, proactive, long-term process designed to
examine the overall business process and prevent problems.

NOTE: End the lecture by asking students to write down the muddiest points or main
points of the lecture. This will allow you to know what might need to be reviewed during
the next lecture.

Copyright © 2018 Pearson Education, Inc. Page 7


SUPPLEMENTAL ACTIVITIES

Supplemental In-Class Activity 1


SWOT-ing Walmart

Activity Overview: This activity allows the class to create a SWOT analysis for a
company with which everyone is familiar. They can see how top executives begin to
develop strategic plans.

Time Limit: 30 minutes

What to Do:

• Divide the class into groups or allow students to pair up.


• Explain to the students that they are to consider themselves top executives in
charge of strategic planning for a major company with which they are all familiar,
Walmart. (If students are not familiar with Walmart, use another large company
such as Nike, or Coca-Cola.)
• Ask each group to list and record at least four internal strengths, internal
weaknesses, external opportunities, and external threats for the company chosen.
• Bring the entire class back together and have each group list their best
contributions to the SWOT analysis they have created. Write these contributions
on the board.

Don’t Forget: It is important that you choose a company that every student knows well
for this exercise.

Wrap-Up: From the SWOT analysis on the board, try to identify at least one important
strength, weakness, opportunity, and threat that should be included in the strategic plan
and develop a strategic goal for that item.

Supplemental In-Class Activity 2


How Do Your Goals Stack Up?

Activity Overview: This activity is designed to help students understand the connection
between long-term, intermediate, and short-term goals.

Time Limit: 30 minutes

What to Do:

1. Ask student to write down one or two of their long-term goals, focusing on the five-
year plus horizon. (10 minutes.)

Copyright © 2018 Pearson Education, Inc. Page 8


2. Ask students to write down one or two of their intermediate goals—focusing on a
one- to five-year horizon—that may help them achieve their long-term goals.

3. Ask students to identify one or two short-term goals—covering a range of less than
one year—that may help them to achieve their intermediate goals.

Don’t Forget: Remind students that the achievement of short-term goals can support the
achievement of intermediate goals, which can ultimately support long-term goals.

Wrap-Up: Remind students that goal setting in organizations is driven by corporate,


tactical, and operational strategies; however, the process is dynamic. Organizational
environments and situations can change. As a result, goals may need to be reshaped.
People, like organizations, may need to have contingency plans.

Copyright © 2018 Pearson Education, Inc. Page 9


ENHANCING THE ONLINE COURSE

Database Search: Require your students to use the database resource of your institution’s
online library system. Have them search for recent case studies involving planning,
organization, leadership, or control issues. Ask students to share the case studies, along
with their write-up of the possible solution, by posting them online. You might also have
students submit the case studies for a grade.

Graphic Illustration: Have your students find an open source graphic on the Internet to
illustrate each of the following: technical skills, interpersonal skills, conceptual skills,
decision-making skills, and time management skills. Have them write a paragraph
explaining how the graphic they have chosen illustrates the skill. Then, ask students to
write a one-page paper on why all of these skills are necessary for a person to be a great
manager.

Decision Model: Ask your students to create a graphic to illustrate the five stages of
decision making, using their computers. Have them submit the graphic (with detailed
explanation) for a grade.

Time Management PowerPoint: Have your students develop a 10 slide presentation on


time management using at least the four tips discussed in the textbook, as well as other
tips gleaned from Internet research. Have the students send you the project for a grade
and also show the presentation to a friend. Use an evaluation form that includes the
friend’s name, email, and telephone number as “proof” of the successful completion of
the presentation.

Strategic Search: Have your students search the Internet for a link to the Fortune 500
company list. Ask them to search the Web to find a copy of a strategic plan from any of
these companies. Students should review the strategic plan for the following: mission
statement; broad direction and vision; information; format; SWOT analysis; action plans.
Each student should post their findings on a course blog, so that the information can be
shared. (This is also great information for possible job hunting at a later date for your
students.)

Tactical Search: Once your students have completed the Strategic Search, have them look
for the tactical or operational plans from the same entity. These plans may be more
difficult to find. If your students cannot locate both a tactical and operational plan, you
may have them review not-for-profit institutions to find them. These public entities often
post their plans more readily than profit companies. Ask students to review the plans for
types of actions taken to achieve one goal in the overall strategic plan. They should list
the numbers of actions required to reach even one goal and post them on the discussion
board. Students will be surprised at the numerous actions and efforts needed to support
one goal.

Copyright © 2018 Pearson Education, Inc. Page 10


ANSWERS TO END-OF-CHAPTER MATERIALS

Self-Test
Multiple Choice
7-1 The four primary processes of management are
b. organizing, controlling, planning, and leading.
Learning Objective 7-1: The Foundations of Management
AACSB: Analytical thinking

7-2 A SWOT analysis


a. is an important part of developing a strategic plan.
Learning Objective 7-2: The Functions of Management: Planning
AACSB: Analytical thinking

7-3 A well-defined corporate vision benefits a company by


d. All of the above
Learning Objective 7-2: The Functions of Management: Planning
AACSB: Analytical thinking

7-4 The mission statement is a description of an organization’s


b. current purpose, basic goals and philosophies.
Learning Objective 7-2: The Functions of Management: Planning
AACSB: Application of knowledge

7-5 The focus of a strategic plan is different than a tactical plan because
a. a strategic plan has a long term focus and a tactical plan looks just a few years
ahead.
Learning Objective 7-2: The Functions of Management: Planning
AACSB: Application of knowledge

7-6 The controlling function of management is best described as


c. measuring the firm’s performance to make sure the company’s plans are on
track.
Learning Objective 7-4: The Functions of Management: Controlling
AACSB: Application of knowledge

7-7 The span of control of a specific position is found by


a. counting the number of employees that person supervises.
Learning Objective 7-4: The Functions of Management: Controlling
AACSB: Application of knowledge

7-8 The seven basic tools for monitoring a business include all of the following
except
b. Monte Carlo statistical simulations.
Learning Objective 7-4: The Functions of Management: Controlling
AACSB: Analytical thinking

Copyright © 2018 Pearson Education, Inc. Page 11


7-9 Positions which would be considered middle managers include
d. all the above.
Learning Objective 7-1: The Foundations of Management
AACSB: Application of knowledge

7-10 A corporation with a matrix organizational system


a. pools people into groups by skills.
Learning Objective 7-3: The Functions of Management: Organizing
AACSB: Analytical thinking

True/False
7-11 A company with a vertical organization cannot use an inverted organization.
 False
Learning Objective 7-3: The Functions of Management: Organizing
AACSB: Analytical thinking

7-12 A SWOT analysis is used to determine the strategic fit between an


organization and its internal and external environments.
 True
Learning Objective 7-2: The Functions of Management: Planning
AACSB: Analytical thinking

7-13 Conceptual skills mean a person has the ability to think abstractly.
 True
Learning Objective 7-1: The Foundations of Management
AACSB: Analytical thinking

7-14 Contingency planning helps a business weather a disruption or a crisis.


 True
Learning Objective 7-2: The Functions of Management: Planning
AACSB: Analytical thinking

7-15 The Six Sigma initiative is focused on improving communication.


 False
Learning Objective 7-4: The Functions of Management: Controlling
AACSB: Analytical thinking

Critical Thinking Questions: Suggested Answers

7-16 Answers will vary depending on the student’s individual work experiences.
Learning Objective 7-1: The Foundations of Management
AACSB: Application of knowledge

Copyright © 2018 Pearson Education, Inc. Page 12


.
7-17 Answers will vary depending on the student’s individual preferences. When
students are answering this question, be sure to refer them back to the fact that
there is more empowerment in horizontal organizations, and each employee has
more responsibility and contributes more directly to the company. However, this
empowerment also removes something of a “safety net” for less-experienced
employees who may not have direct supervision and as much job instruction. This
concept of empowerment carries forward into inverted organizations, in which
management is answerable to employees.

Learning Objective 7-3: The Functions of Management: Organizing


AACSB: Analytical thinking

7-18 To answer this question students will discuss the seven basic tools to monitor
quality:

Check sheet. A simple sheet recording the number of times certain product
defects occur
Control chart. A graph that shows the average and fluctuations of a process
being monitored to determine whether it is behaving within the limits of proper
functioning.
Histogram. A graph that displays the count of the number of times a specific
event occurs.
Pareto chart. A combination bar and line graph that shows different categories of
problems and the total (cumulative) number of problems. merchandise.
Scatter plot. A graph that displays the values of two variables to see if there is a
relationship between them.
Run chart. A graph that displays the value of some data across a specific set of
dates. Managers can then identify problems that occur in a certain cycle.
Cause-and-effect diagram.

The answers will vary depending on the companies that the students use as
examples. Some students will believe that too much data would impede decision
making while other students will believe that additional data will improve the
quality of decision. Most students will also probably agree that the type of
problem and manager will affect the choice and use of data.

Learning Objective 7-4: The Functions of Management: Controlling


AACSB: Analytical thinking

Team Time
On a Mission
This exercise requires that students compare mission statements from several different
companies and rate the statements on how inspiring they are. As the students compare

Copyright © 2018 Pearson Education, Inc. Page 13


these statements, remind them that the mission statement should capture the
organization’s purpose, basic goals, and philosophies. There are many possible responses
to what makes an effective mission statement—consider these two sets of rules, for a
start:

A. From Inc., “5 Tips for a Useful Mission Statement”: http://www.inc.com/ss/5-


tips-on-developing-an-effective-mission-statement

1. Include the four key elements: value, inspiration, plausibility, and specificity.
2. Keep it short and sweet.
3. Consider long-term vs. short-term.
4. Test it on your employees.
5. Revisit it often.

B. From “How to Write a Mission Statement in 5 Easy Steps” by Tim Berry:


http://articles.bplans.com/writing-a-mission-statement/

1. Start with a market-defining story.


2. Define how your customer’s life is better because your business exists.
3. Consider what your business does for employees.
4. Add what the business does for its owners.
5. Discuss, digest, cut, polish, review, revise.

Learning Objective 7-2: The Functions of Management: Planning


AACSB: Application of knowledge

Ethics and Corporate Social Responsibility


Assessing Social Responsibility
In this exercise, students discuss how organizations might control their social
responsibility efforts. Look for students to mention things such as monitoring the
reputation of the company (outside marketing agencies often measure this) and more
objective measures, such as decreases in pollution or improved living conditions in areas
where the company does business. For example, Nike has stopped dealing with vendors
who use child labor, which means that the organization has to conduct independent audits
of their suppliers on a regular basis.

Web Exercises

7-19 Project Oxygen


Answers will vary but the following websites will help students answer this question:

Copyright © 2018 Pearson Education, Inc. Page 14


How Google Sold Its Engineers on Management
https://hbr.org/2013/12/how-google-sold-its-engineers-on-management
Google's Project Oxygen Pumps Fresh Air Into Management - TheStreet
https://www.thestreet.com/story/12328981/1/googles-project-oxygen-pumps-
fresh-air-into-management.html
Google's 8-Point Plan to Help Managers Improve - The New York Times
http://www.nytimes.com/2011/03/13/business/13hire.html?_r=0

From the New York Times article:


“ The “people analytics” teams at the company produced what might be called the
Eight Habits of Highly Effective Google Managers.”……..

“People typically leave a company for one of three reasons …Managers had a
much greater impact on employees’ performance and how they felt about their job
than any other factor, Google found.

“The starting point was that our best managers have teams that perform better, are
retained better, are happier — they do everything better,” Mr. Bock says. “So the
biggest controllable factor that we could see was the quality of the manager, and
how they sort of made things happen. The question we then asked was: What if
every manager was that good? And then you start saying: Well, what makes them
that good? And how do you do it?”

In Project Oxygen, the statisticians gathered more than 10,000 observations about
managers — across more than 100 variables, from various performance reviews,
feedback surveys and other reports. Then they spent time coding the comments in
order to look for patterns.

Once they had some working theories, they figured out a system for interviewing
managers to gather more data, and to look for evidence that supported their
notions. The final step was to code and synthesize all those results — more than
400 pages of interview notes — and then they spent much of last year rolling out
the results to employees and incorporating them into various training programs.”1

Based on the information collected, Google analyzed the comments and performance of
its managers. After the review, Google used the information to coach and improve the
performance of its managers. Based on their personal work experiences, many students
will identify additional factors that “make a good manager”.

Learning Objective 7-1: The Foundations of Management


AACSB: Application of knowledge

1Google's 8-Point Plan to Help Managers Improve - The New York Times
www.nytimes.com/2011/03/13/business/13hire.html?_r=0

Copyright © 2018 Pearson Education, Inc. Page 15


7-20 Tools for TQM
Students’ answers will vary, depending upon the online resources they used and
their individual results.
Learning Objective 7-4: The Functions of Management: Controlling
AACSB: Application of knowledge

7-21 How Well Do You Manage Your Time?


Students’ answers will vary, depending upon the online assessments and their
individual results.

Learning Objective 7-1: The Foundations of Management


AACSB: Application of knowledge

7-22 Predictably Irrational


A transcript of the video is available at http://news.rapgenius.com/Dan-ariely-are-
we-in-control-of-our-own-decisions-annotated. The example of the patient and the
doctor involves which treatment to recommend to a patient. Ariely’s basic
argument is that we make many decisions because we pick whatever is chosen for
us, that we let ourselves subconsciously be swayed away from a decision which
involves more complex choices.

Students’ answers concerning business decisions where factors outside the


decision-making process influence the outcome will vary.

Learning Objective 7-1: The Foundations of Management


AACSB: Application of knowledge

7-23 Get SMARTER


Students’ answers will vary, depending upon the goals selected.

Learning Objective 7-3: The Functions of Management: Organizing


AACSB: Application of knowledge

MyBizLab: Suggested Answers

7-24 Students’ answers concerning contingency plans will vary depending on the local
business used for comparison. Students should include and elaborate on
information using Figure 7.7

Learning Objective 7-2: The Functions of Management: Planning


AACSB: Application of knowledge

7-25 Answers will vary but students should apply information from Figures 7.12 A –
G when discussing the complexity of a project’s impact on quality control.
Students’ opinions will vary as to whether the software industry can achieve Six

Copyright © 2018 Pearson Education, Inc. Page 16


Sigma quality but most students will probably agree that the Six Sigma goal is a
worthy one as long as the expected benefit exceeds the cost.

Learning Objective 7-4: The Functions of Management: Controlling


AACSB: Application of knowledge

Copyright © 2018 Pearson Education, Inc. Page 17

You might also like