In November 2011, Ron Johnson was named CEO of JC Penney following the seven-year tenure of Mike Ullman. He was brought in with a mandate for change to bring new life and new customers to the brand. He had been successful with similar efforts at both Target and Apple; however, he had not been a part of a turn-around before. Johnson made his decisions based on instinct rather than research. He also made many changes very quickly, which alienated his established customer base. This caused the iconic American brand’s stock to drop 50 percent during his tenure. In April of 2013, after only being on the job for 17 months, he was fired as the CEO of JC Penney and replaced by his predecessor, Mike Ullman. The video demonstrates that leaders must consider business environmental factors and customer needs before making strategic decisions. 1. What could the JC Penney board have done differently in the selection process of a new CEO? 2. Why do you think customers rejected JCP's new format?
> Select the best answer. 1. Which of the following should not be included in the introductory section of a city’s CAFR? a. Management’s discussion and analysis b. Letter of transmittal c. Government Finance Officers’ certificate of achievement for excell
> Select the best answer. 1. New York State has unlimited authority to control and regulate Yonkers as well as all other municipalities within its jurisdiction. Consistent with GASB standards: a. Both New York State and Yonkers could be considered primary
> Suppose Riverside has unfunded pension liabilities of $15 million and another $15 million in retiree health care liabilities. By way of contrast, Lakeview has unfunded pension liabilities of $4 million, and $13 million in retiree health care liabilities.
> Explain the significance of each of the following ratios. For each of the ratios indicate whether an increase can be interpreted as a sign of (1) increasing or (2) decreasing fiscal strength. Where appropriate, show how an increase in the ratio can be in
> You are a CPA in charge of auditing a midsize school district. You recognize that the risk of financial failure is dependent as much on factors not reported in the basic financial statements as on factors that are reported. Accordingly, you conduct a com
> The following information was taken from the CAFRs of two cities of approximately the same size in the same state. 1. Compare the financial condition of the two cities based on the following indicators: a. Per capita operating expenditures b. Per capita
> What are the general criteria that audit organizations use in selecting programs and activities for performance audits?
> The data that follow were drawn from the city of Boulder, Colorado’s CAFR. Dates have been changed. They are from two statistical‐section schedules showing the mix of revenue and expenditures for a 10‐
> The U.S. Environmental Protection Agency (EPA) requires owners of municipal solid waste landfills to demonstrate that they are financially capable of satisfying the costs of closing and subsequently caring for the landfills that they operate. Per EPA reg
> The following data were drawn from the CAFRs of two northern Virginia cities (all dollar amounts are in thousands): 1. Based on the limited data provided, which city has the greater resources on which to draw? 2. Which city imposes the greater tax burden
> Hawkins Township has two component units that it is required to include in its reporting entity. The first, a housing authority, maintains two funds: a general fund and a special revenue fund. The second, a transportation authority, has but one fund: an
> A state established the Mohansic River Power Authority to construct and operate dams and to provide electric power to rural areas. The authority, a state‐owned corporation, is governed by an independent board of directors, the 10 members of which are app
> The bylaws of the Wells City Downtown Development Authority state that of the seven members of its governing board, two must be members of the Wells City Council, one must be a member of the City Zoning Board, and one must be a member of the City Plannin
> Newville City accounts for and reports on the Newville Housing Authority as a discretely presented component unit. It engages in numerous transactions with the housing authority (e.g., providing grants and occasionally buying or selling properties). How
> Owing to severe fiscal problems as well as a pattern of management incompetence and corruption, a city is placed under the control of a special authority established by the state. The authority has the power to impose its will on virtually all day‐to‐day
> Why are “one‐shots” and other financial gimmicks of special concern to analysts?
> The GASB requires governments to identify their principal taxpayers in their CAFRs’ statistical section. In what way does this information contribute to an analysis of financial condition?
> In what other significant ways do performance audits differ from financial audits?
> Why do some analysts see the budget of a government as being of no less importance than its CAFR in assessing financial condition?
> What is meant by fiscal capacity and fiscal effort? Why are they of significance in assessing a government’s financial condition?
> Why might analysts be concerned if a government has an unusually high ratio of intergovernmental revenues to total revenues relative to a comparable government? Why might they be concerned if the same ratio is unusually low?
> Notes to the financial statements and required supplementary information (RSI) must both be included in a government’s CAFR. What, then, does it matter if information is provided in notes as opposed to RSI?
> Suppose that a government has had several years of general-fund surpluses. Is this necessarily a sign of financial strength?
> A special‐purpose government is established to operate parking garages. Will it have to prepare both government‐wide and fund statements? Explain.
> Provide five examples of the type of information to be addressed by management in its discussion and analysis (MD&A).
> What is meant by “combining statements”? Why is it especially appropriate to present combining statements for internal service funds?
> What are the three main sections of the comprehensive annual financial report? What are the main components of the financial section?
> What is the primary deficiency of discrete presentation as it must be applied in government‐wide statements?
> In what ways can it be said that a single audit is “risk based”?
> How does discrete presentation differ from blending? When is each appropriate?
> Per GASB standards, what is the key criterion as to whether a government should be included as a component unit in the reporting entity of another government?
> What typically are the main adjustments relating to capital assets and long‐term obligations required to convert the government funds statement of revenues and expenditures to the government‐wide statement of activities?
> What typically are the two main adjustments required to convert the government fund balance sheet to the government‐wide statement of net assets?
> Based on Form 990 and the annual report and the audited financial statements of the American Cancer Society obtained for fiscal year 2014 1. Identify the types of receivables presented in the statement of financial position. In addition, provide a simple
> Discovery Barn, a not-for-profit science center for children, received a contribution of $30,000 explicitly designated for the acquisition of computers. During the year it acquired $21,000 of computers, which it estimated to have a useful life of three y
> During 2017 the Lung Association received a contribution of marketable securities that were to be placed in a permanent endowment fund. Neither donor stipulations nor applicable state law requires that capital gains or increases in value be added to the
> In each of the following scenarios, an organization receives a contribution in kind. Prepare journal entries, as necessary, to give them accounting recognition. For each, tell why you made an entry or why you did not. 1. A local not-for-profit art museum
> Upon meeting with the executive director of the Crime Victims Advocacy Group, the president of a private foundation agreed to contribute in the following year $100,000 in support of the group’s proposed program to provide legal assistance to victims of v
> Select the best answer. 1. A local chapter of the Society for Protection of the Environment benefited from the voluntary services of two attorneys. One served as a member of the Society’s board of directors, performing tasks comparable to other director
> What are the four main types of reports required of a single audit?
> In what significant way do financial audits in government and not‐for‐profit organizations differ from those carried on in businesses?
> Zappos is an online footwear and apparel company. It is stated that, over time, Zappos has grown from a company that simply fulfills a customer need to one that provides superior customer service. In 2010, Amazon bought Zappos, which was seen as a positi
> Role: Poor Performer You sell shoes full time for a national chain of shoe stores. During the last month you have been absent three times without giving your manager a reason. The quality of your work has been slipping. You have a lot of creative excuses
> This Take-Away Application encourages students to consider how they can use influence tactics to achieve their goals. 1. Determine if you need this person’s compliance or commitment. 2. Then, using whichever tactic in Self-Assessment 12.2 is your highes
> This Problem-Solving Application profiles the necessary collaboration between competing hospitals and nursing homes in order to fight Clostridium difficile, an antibiotic-resistant bacteria that people can get infected with upon admission to one of these
> This Problem-Solving Application encourages students to consider the extent to which people can change their leadership styles. What leadership concepts or theories helped Bill Marriott to make a decision about his successor?
> This OB in Action profiles Deloitte’s new approach to performance management. The steps of setting goals and objectives, monitoring and measuring performance, reviewing performance and providing feedback, and rewarding performance are detailed based on w
> This Take-Away Application guides students on how to use the STATE technique. 1. Use STATE to guide your planning. 2. Schedule and have the crucial conversation. Then review how it went using STATE to see how well you did and the benefits.
> This Take-Away Application encourages students to consider how their membership in a formal group fulfills individual and organizational functions, as described in Table 8.1. 1. Describe how being a member of that group fulfills at least three of the fi
> This OB in Action profiles how Cisco thrives on innovation. Since the 1990s, the company's growth and product mix have mirrored the evolution of the Internet, from routers to switches, to mobile, video, cloud computing, and application-centric computing,
> Joe McCormack discusses the importance of brevity in today’s business and military environments. Over the past decade, due to the enormity of information that folks are inundated with, attention spans have dropped from 12 to 8 seconds. This has led to an
> Some companies prefer to “pamper” their employees in order to attract and motivate them on the job, as well as to create a space that invites creative output. However, one study examined productivity during the recent recession and concluded that product
> Based on your answer, and your knowledge of judgmental heuristics, what could you have done differently to avoid the bad decision?
> This OB in Action profiles Facebook. In 2012, the organization was almost entirely focused on users accessing Facebook on desktop computers. The fact that it now has hundreds of engineers working on mobile is a strong signal that mobile apps are at the c
> What is motivation and how does it affect my behavior?
> How are top-down approaches, bottom-up approaches, and “idiosyncratic deals” similar and different?
> How would I compare and contrast the process theories of motivation?
> How would I compare and contrast the content theories of motivation?
> What is culture, and why is it helpful to understand its layers and functions?
> How can I use mentoring to foster personal and professional success?
> How can I integrate the findings of socialization research with the three phases of socialization?
> What mechanisms or levers can I use to implement culture change?
> How are different types of organizational culture related to outcomes?
> 1. What types of problems that occur during meetings are most difficult to handle? Explain. 2. Can any particular leader behaviors help solve multiple problems during meetings? Discuss your rationale.
> Many airlines have experienced financial troubles in recent years. When Japan Airlines had to buckle down and cut employee salaries several years ago, CEO Haruka Nishimatsu cut his own salary as well. Nishimatsu had a salary far less than most CEOs and t
> This OB in Action allows students to reflect on how companies help their employees to develop global mind-sets. 1. Which of the positive traits and interpersonal attributes are likely to be enhanced by developing a global mind-set? 2. What steps could y
> At the conclusion of a previous meeting between Syl Tang and two employees, Daniel Simmons and Bob Franklin, Daniel asked Syl about the same-sex partner benefits that he had requested earlier, incidentally informing Bob that he was homosexual. Bob expres
> Performance-based pay for teachers has been a hotly debated issue for a number of years. This video focuses on Sulphur Springs school in Tampa that has implemented pay-for-performance for its teachers. The school had previously received an “F” rating und
> This Problem-Solving Application profiles Black Butte Coal, where a warehouse supervisor and maintenance manager's conflict escalated to the point that their manager was going to fire both of them. Not only did they disagree and argue, but they also yell
> This OB in Action highlights the advantages and disadvantages of when someone “blows the whistle” on the illegal actions of his or her company. Some whistleblowers are rewarded financially for their actions, but others pay a heavy price in the form of re
> This Take-Away Application encourages students to consider why individuals on one of their teams may have engaged in social loafing and what can be done to prevent social loafing. 1. Think of a group or team situation in which one of the members was “lo
> This Take-Away Application encourages students to consider the forms of trust and the potential implications of trust violations. 1. Describe a person with whom you have a high level of contractual trust, then a person with whom you have a low level. Wh
> Melissa, Office Manager You are the manager of an auditing team for a major international accounting firm headquartered in New York. You and Larry, one of your auditors, have been sent to Bangkok, Thailand, to set up an auditing operation. Larry is about
> This OB in Action profiles law firm Baker Donelson. The firm values community service and has doubled its pro bono hours each year since 2008. They also have a pro bono shareholder and pro bono committee. 1. What do you think are the three greatest bene
> Susan Sheppard, Creative Design Manager at Word-of-Mouth Marketing Group, is consistently bullied by her colleague, Alexandra Woodward, the boss' sister. Alexandra has been working at the firm a little over a month, after quitting her job as a Rare Artif
> This OB in Action profiles Parnassus Investments, which manages $15 billion in six funds. The organization’s founder believes that companies should be ethical and in some way contribute to the greater good of society. Thus, his investments have "excluded
> Did your committee do a good job? Explain.
> In this Take-Away Application, students reflect on common forms of unethical behavior at their school or workplace. 1. Identify the three most common forms of unethical behavior at school or where you work. Be specific. 2. Using Table 1.2, determine wha
> Of course there are at least two sides to the question of whether employers should monitor employees' social media use. Employees have a right to the privacy of what they say, to whom, when, and through which channels (face-to-face, phone, or social medi
> This video focuses on the dynamics and importance of teams in a corporate environment. The video uses Zappos.com, an online shoe retailer formed in 1999, that is known for its quirky and fun, clan-based work environment, as one example of how teams work
> 1. When interviewing financial advisors, would you compare IQs? If you were the coach, GM, or owner of a professional sports team, would you use intelligence testing? In each case, why or why not? 2. If you were a hiring manager for your company, how muc
> 1. What advice would you give to managers on how to handle their own anger and other negative emotions at work? 2. What advice would you give to managers on how to handle the anger and negative emotions felt (and expressed) by their direct reports? 3. Wh
> This Problem-Solving Application describes the incidents leading up to the termination of a 64-year-old Staples employee who ended up suing the organization for wrongful termination and age discrimination. The employee had positive performance evaluation
> This OB in Action profiles how organizations are moving past laundry being a woman’s chore and are referring to “him and her” laundry products, as well as researching male and female behavior and habits when it comes to laundry. 1. Are you surprised tha
> Consider this report from the Wall Street Journal: “On the way to bankruptcy court, Lear Corporation, a car-parts supplier, closed 28 factories, cut more than 20,000 jobs, and wiped out shareholders. Still, Lear sought $20.6 million in bonuses for key ex
> This Problem-Solving Application encourages students to consider how one company used experimentation to test the viability of ideas. What OB theories or concepts help explain the causes of the problem?
> This Problem-Solving Application profiles an employee who was promoted to a supervisor of her former peers. Her peers were not delivering high-quality work and seemed to lack a sense of accountability, knowing that if their work wasn’t up to speed the bo
> The Citadel--The Military College of South Carolina--was founded in 1842. It has a student body of about 2,300 undergraduates (2,121 males and 171 females) and about 1,000 graduate students. The college's vision is "achieving excellence in the education
> Jamie Dimon is the CEO and chairman of JPMorgan Chase. He has held both roles since 2005--that is, before, during, and after the financial crisis. Few executives on Wall Street are as respected and recognized, or as well compensated—for instance, in 2013
> This Take-Away Application encourages students to consider how the process model of communication can explain miscommunications. 1. Based on the process model of communication shown in Figure 9.2, what went wrong? 2. Based on what has been presented so
> The Executive Director of Operations has assigned Joe Tanney the role of Team Leader for a high priority project. The task is to generate a proposal for streamlining the antiquated blueprint generation process. Each office is at different stages of compu
> This Take-Away Application encourages students to consider how they could implement job crafting, based on their results of Self-Assessment 5.3. 1. Use results from your assessment to identify three job crafting ideas you might use to increase your intr
> 1. What are the advantages and disadvantages of such high levels of emotional stability at school and work? 2. Do you think such a personality characteristic is necessary to be a successful executive on Wall Street? How do your answers change (if they do
> This OB in Action describes how some companies use standardized virtual interviews, which can result in greater consistency of the information gathered from each applicant, foster collaboration for those involved in the hiring decision, and save time and
> This Take-Away Application encourages students to apply Kelley’s Model of Attribution for either a work-related or personal example. 1. Use Kelley’s model to identify whether the unexpected behavior was due to internal or external causes. 2. Based on th
> How can I use reinforcement and consequences to improve performance?
> How can I use consequences to generate desired outcomes?
> How can I use feedback and coaching to review and improve performance?
> How can performance monitoring and evaluation improve my performance and my ability to manage the performance of others?
> How can improving my goal setting give me an advantage?
