Answer the following questions:

1. Which of the following is NOT a reason for the importance of planning?

A. It can be used as a way of controlling managers within an organization.

B. Gives the organization a sense of direction.

C. Most employees can serve on committees and do all the planning for the organization.

D. It's a useful way to get managers to participate in decision making.

2. The movie Men in Black 3 cost $250 million to make. The movie managed to break even, but many films don't, which reflects the tremendous ___in the industry.

3. Which of the following is NOT an ethical rule used to analyze the effects of business decisions:

A. Practical rule

B. Individual rule

C. Moral rights rule

D. Justice rule

4. Shared guidelines or rules of behavior that most group members follow are called ___?

1. Most employees can form teams and even committees, but they cannot do all the planning for the company.

2. The movie (Men in Black 3) managed to break even, but many films don't, which reflects the tremendous uncertainty in the industry.

3. Individual rule is not an ethical rule used to analyze the effects of business decisions.

4. Shared guidelines or rules of behavior that most group members follow are called group norms.

Expert Answers

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1. Planning is a process which is used to define the goals of the company; planning can give the company a sense of direction and it can be used as an effective strategy to promote and encourage participation of the employees and the managers of the company in the decision-making process. Planning can also be used as a way to "control" the managers, as it forces them to consider future trends and conditions and to be up to date with all significant changes in the business climate, especially those that might affect the company.

A successful way for a company to develop its planning strategies is for the board to also involve the company's employees in the planning process, however this is often not the case in most organizations. Therefore, most employees don't really do all the planning for the company.

2. Uncertainty means that the company and its management team are aware of the goals that they wish to achieve, however they cannot be certain that they'll achieve it in the future, as they don't have enough information or knowledge about the environment. There is a quite a lot of uncertainty in the film industry, as filmmakers cannot objectively or correctly predict whether or not their film will be successful or whether or not it'll break even. The fact that Men in Black 3 managed to break even, but many other movies didn't, reflects the tremendous uncertainty in the film industry.

Ambiguity means that, on top of not having enough information, sometimes even the goals of the company are unclear, while groupthink is a process in which the group makes decisions without critically evaluating or discussing the problem, which often results with bad decision-making.

3. The four rules or principles of ethical decision-making are: the utilitarian rule, moral rights rule, justice rule, and practical rule. There is no individual rule.

4. Every group has its group norms or rules of behavior and guidelines that they follow in order to achieve the company's goals. Group norms also determine how the group communicates with each other and they can either "make or break" the team.

Interdependence is very important in an organization, as it implies that members often he group must collaborate with each other because they depend on each other to successfully carry out their responsibilities; synergy is basically cooperation between the employees, groups, or organizations which guarantees greater success, bigger value and better performance; division of labor is when the production and manufacturing process is separated into tasks and each task is assigned to or performed by different people or groups of people.

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