1. George is a manager for InnoBLAST Inc., a web-based applications company. In an attempt to promote new ideas, George decides to allow his engineering team to devote 15% of their work time to whatever projects they would like to work on and reduces their assigned workload. He then institutes a 30 minute period each morning where the team members are asked to look over their current project list for the day and develop more knowledge about a task before they move on to work on their assigned tasks. The time period set aside each morning should help promote which stage of the creative process? *

A. Illumination

B. Both preparation and incubation

C. Incubation

D. Preparation

E. Both preparation and illumination

2. Paying employees on the basis of their performance is right, while paying on the basis of seniority is wrong. Such behavior leads to disappointed employees and this can lead to job dissatisfaction and a decision not to show a high level of effort because its probably not going to lead to more money anyway. Which of the following terms describes basic convictions that "a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite mode of conduct"? *

A. Feelings

B. Values

C. Attitudes

D. Emotions

E. Morals

3. During the annual company picnic, a "friendly" debate erupts over who performed best in the ultimate Frisbee game played at last year's picnic. The battle lines are drawn between departments, and everyone insists the best performance was demonstrated by those in their own departments. What might be the root cause of this debate? *

A. Halo effect

B. Self-fulfilling prophecy

C. Performance bias

D. Selective perception

E. Team Bias

4. International Manufacturing & Trading (IMT) is a medium-sized U.S. company rapidly expanding in the Asian and Far East markets. The company has decided to open a manufacturing plant in Japan, Taiwan, and Malaysia. IMT will send key top managers from the U.S. office and will hire the lower-level managers and employees from the local markets. IMT managers realize that there will be some cultural differences but are unsure of what and how much. IMT managers should know that employees from cultures with a high power distance are more likely to: *

A. Avoid people in positions of power.

B. Readily reject the high status of other people in the organization.

C. Use their power to obtain undue favors.

D. Encourage consensus-oriented decision making.

E. Readily accept the high status of other people in the organization.

5. With funding from her family, Sarine is currently developing a new line of dolls for her business which she hopes will take her company to the next level. At first, she encountered some minor problems with the construction of the dolls and spent a fair amount of money engineering a way to enable them to be like she envisioned. Unfortunately, she then found out that there was a patent protecting the way the dolls arms were connected, so she spent more money redesigning the dolls. After an unexpectedly uninterested response from the public in the dolls, she decided that they needed to be marketed differently in order to sell. So Sarine allocated more resources to marketing and had the packaging of the dolls redesigned and created new set of advertising materials. The cost of manufacturing these dolls has now exceeded four times the initial proposed cost, but she is determined to make it work. She is embarrassed by how this has gone, but continues to put on a brave front. What could Sarine have done differently in order to avoid this escalation of commitment with her decisions? *

A. Ensure that the people who evaluate the decisions are not the people who originally made them.

B. Publicly establish a preset level at which the decision is abandoned or reevaluated.

C. Find a source of systematic and clear feedback.

D. All of these would be effective.

E. None of these would be effective