management questions from practice exams

One way to lessen stress in a job is to ________.

Increase autonomy of the job

How can a cost leader use e-business to reduce costs?

It could use Web-based inventory control systems that reduce storage costs.

Which of the following is an example of a psychological symptom of stress?

procrastination

________ strategies address declining performance through retrenchment and turnaround strategies.

renewal

________ is the obligation or expectation to perform a duty.

responsibility

Which is the first step managers should follow in goal setting?

reviewing the organization's mission

What is a strategic disadvantage of being a first mover?

risk of competitors imitating innovations

Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected to supervise six workers and make sure they have all the materials they need to perform their duties. Cameron is likely to experience ________.

role overload

An increase in the diversity of his department has led to conflict and animosity. To reduce this and allow his team to become more productive, Lemuel has asked the Human Resources department to provide ________ for his people.

sensitivity training

A ________ system rewards employees for the job competencies they demonstrate.

skill-based pay

Steve recommends that employees should be compensated according to their competencies, rather than their designations. Employees should be financially rewarded when they gain more knowledge and learn new processes that are relevant to the job, even if the employee is at a lower level. This implies that Steve favors a ________.

skill-based pay system

The ________ determines the number of levels and managers in an organization.

span of control

________ plans are clearly defined and leave no room for interpretation.

specific

When uncertainty is high, plans should be ________ and ________.

specific; flexible

According to Lewin, which of the following is the objective of refreezing?

stabilizing the new situation

An organization's ________ goals are official statements of what an organization says, and what it wants its stakeholders to believe its goals are.

stated

________ plans apply to the entire organization and establish the organization's overall goals.

strategic

Farrah has created a computer-generated mockup of her new product for inclusion in the ________ section of her business plan.

supporting documentation

In the case of functional departmentalization, jobs are grouped according to ________.

tasks

Turnover is high among new hires at Stewart's company. At one exit interview, Stewart asked the departing new hire why she was leaving so soon. Which one of the following statements is the most likely response?

the higher level employees repeatedly overemphasize the company's positive points while interviewing candidates

When the price of beef skyrockets, consumers switch to pork and chicken. This demonstrates ________.

the threat of substitutes

Which of the following is a competitive force under the five forces model?

threat of new entrants

An innovative culture is likely to have ________.

tolerance of conflict

A company that competes by offering unique products that are widely valued by customers is following a differentiation strategy.

true

Changing structure includes any change in structural variables such as reporting relationships, coordination mechanisms, employee empowerment, or job redesign.

true

Dynamic environments require a flatter organizational hierarchy in order to plan effectively.

true

Entrepreneurships are more likely than large businesses to generate patentable ideas.

true

Given other things unchanged, managers with well-trained and experienced employees can function well with a wider span of control than those with a less talented workforce.

true

High-performance work practices involve a commitment by management to improve the knowledge, skills, and abilities of the organization's employees, increasing employee motivation, and enhancing the retention of quality employees.

true

Human resource planning entails two steps: assessing current human resources and meeting future human resource needs.

true

In a limited liability company, profits are taxed as a partnership.

true

In divisional structures, the parent corporation typically acts as an external overseer to coordinate and control the various divisions of the organization.

true

One reason people resist change in an organization is that they are afraid their skill set will be obsolete.

true

The more the decision-making power of lower-level employees, the more decentralized the organization is.

true

The profits of an S corporation are taxed as a partnership.

true

The trend in unionization in the United States is a decline in the private sector and in increase in the public sector.

true

Written essay and critical incident are performance appraisal methods.

true

According to Kurt Lewin, increasing the driving forces is a means of ________.

unfreezing

________ is a type of technology that centers on small-batch production.

unit production

A ________ selection device is characterized by a proven relationship between the selection device and some relevant job selection criterion.

valid

One characteristic of the matrix structure is that it ________.

violates the principle of unity of command

Willard has been assigned to a project development team in addition to his regular duties as a quality engineer. During this assignment he will report to both the project manager and his quality department manager. This situation ________.

violates unity of command

Which of the following factors calls for a more centralized organizational structure?

when the organization is facing a crisis

In the ________ metaphor, change is normal and expected and managing it is a continual process.

white-water-rapids

The two types of orientations are ________.

work unit orientation and organization orientation

Which one of the following statements is true of traditional goal setting?

Managers at each level define goals and apply their own interpretations and biases as they make them more specific.

The combined external and internal analyses are called ________.

SWOT analysis

________ is the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision is not working.

Strategic flexibility

Bill manages the quality department. His people check parts made by the production departments to assure all specifications are met. Bill is ________.

a staff manager

An organization's mission states that it "is committed to reducing its environmental footprint"; but its facilities do not comply with statutory environmental regulations. This is an instance of how ________.

an organizations stated goals need not be its real goals

Hendricks Ceramics sells items it buys from ceramic factories. If it were to purchase one of these factories, it would be engaging in ________ integration.

backward vertical

________ refers to gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them.

competitor intelligence

Organizations grow by using strategies of ________.

concentration, integration, or diversification

A ________ prevents an individual from doing what he desires.

constraint

The major value-creating capabilities of the organization are known as its ________.

core competencies

People's Airlines offers what it calls "no frills" flights: no reserved seating, no snacks or meals on flights, small planes that fly to smaller airports away from the city centers. People's Airlines is likely following a ________ strategy.

cost leadership

A C corporation can have no more than 50 owners who agree not to sell their stock.

false

A simple structure is characterized by narrow spans of controls and high formalization.

false

Activities that an organization does well or resources that it has available are called capabilities.

false

Business intelligence is the same thing as competitor intelligence

false

Customer departmentalization works well because it emphasizes interdepartmental communication regarding customer's needs.

false

Directional plans are clearly defined and leave no room for interpretation.

false

Diversification is an example of a corporate retrenchment strategy.

false

Exceptional or unique organizational resources are known as core capabilities.

false

Most businesses have only the single goal of making profits.

false

Organizational structure is the formal chain of command of jobs within an organization.

false

Strategic goals focus exclusively on the financial performance of the organization.

false

Strategic management involves only the planning function.

false

The Civil Rights Act, Title VII, prohibits discrimination of employees who are above 40 years of age.

false

The first step in the strategic management process is analyzing the external environment.

false

The main difference between an entrepreneurial venture and a small business is size

false

The presence of planning inhibits the ability of departments and individuals to work together or organizations to move.

false

There are essentially two ways of controlling labor supply through decruitment: firing and early retirements.

false

Using employees in teams might provide some benefits to the organization but it is time-consuming and costly; the costs outweigh the benefits.

false

Coercion involves the use of covert attempts to influence others.

false (manipulation & cooptation)

Dharma is examining her financial position, the market for her proposed new product, the types of ownership available to her, and the tax laws for her area to determine whether she should go forward with her new business. Dharma is conducting a ________

feasibility study

Emily is calculating her annual revenues, balance sheets, and breakeven points so she can write the ________ section of her business plan.

financial data and projections

According to the traditional view, managers could not-and should not-directly supervise more than ________ subordinates.

five or six

The first organizing decision that an entrepreneur must make is the ________.

form of legal ownership

________ refers to how standardized an organization's jobs are and the extent to which employee behavior is guided by rules and procedures.

formalization

A disadvantage of ________ departmentalization is poor communication across the different groups.

functional

The ________ method of performance appraisal allows the evaluator to rate employees on an incremental scale.

graphic rating scale

Sam, a human resources manager, wants to let potential candidates know about the minimum qualifications that they should possess in order to successfully perform the jobs they have applied for. What should he do?

he should create a job specifications

Which one of the many personality traits of entrepreneurs appeared on two separate lists?

high energy level

When Bryan is offered a chance to help direct the efforts of some employees assigned to his work group, he sees this new assignment as a(n) ________.

increase in his responsibility

Assessment centers are best used to select ________.

individuals for management positions

________ is a process of changing, experimenting, transforming, and revolutionizing.

innovating

When one gas station lowers its price a penny, the station on the other corner of the intersection lowers its price, followed by the gas stations on the next block, and so on, until nearly every gas station in town has lowered its prices. This situation illustrates ________.

intense rivalry among competitors

Roberta has been asked to complete a questionnaire about her job duties and the qualifications she believes a candidate for her position should have. Roberta is participating in a ________.

job analysis

Recruitment is the process of ________.

locating, identifying, and attracting capable applicants

In which one of the following traditional training methods do employees work with an experienced worker who provides information, support, and encouragement?

mentoring and coaching

short-term plans are those covering ________ or less.

one year

A study of the external environment allows a manager to understand the ________ and ________ for the organization.

opportunities; threats

Casey majored in marketing and really enjoyed studying market research as a subject. Through research on the Internet and in the university library, she discovers that this industry appears to have significant positive trends in employment. She interprets this as a(n) ________.

opportunity

Juanita gathers her employees to solicit their opinions regarding big issues facing the young business. After considering their input, Juanita makes the final decision. Juanita is engaging in ________.

participative management

Which one of the following would most likely be a source for ideas for the would-be entrepreneur?

personal interests and hobbies

The essence of affirmative action is to ________.

prevent discrimination and enhance the status of members from protected groups

Which one of the following items is found in the financial data section of the business plan?

pro forma cash flow analysis

Hortense and a few of her family members want to launch a new venture but don't want to place their personal assets at risk. For this privilege they are willing to incur the higher taxes associated with the ________ form of organization.

C corporation

When Fletcher lost his job as a result of a downsizing, his health coverage was discontinued even though he was willing to pay for it. Which of the following Acts can Fletcher cite in his efforts to have his health coverage benefits restored?

Consolidated Omnibus Budget Reconciliation Act (COBRA)

When Michele had only three employees, she performed most of the records-keeping tasks herself and kept a general idea of finances in her head. Now that her business has expanded, she is having money problems. What should Michele do?

Create and follow a set of financial controls

Employers believe the main reason people leave their jobs is stress.

False

The "white-water rapids" metaphor of change is consistent with Lewin's concept of unfreezing, changing, and refreezing.

False

Type B personalities seldom experience the symptoms of stress.

False

Which one of the following is true of the impact of formal planning on organizational performance?

Formal planning is associated with positive financial results.

Chapter 11

Chapter 11 Designing Organizational Structure

Chapter 12

Chapter 12 Managing Human Resources

Chapter 7

Chapter 7 Managing Change and Disruptive Innovations

Structural component changes include ________.

combining departmental responsibilities

Chapter 10

Chapter 10 Entrepreneurial ventures

Which one of the following is an example of changing consumer preferences?

The colors in home fashions change every year.

Which one of the following is an assumption associated with traditional goal setting?

Top managers know what is best because they see the "big picture."

Melanie has noticed that everyone is very concerned about the line of authority within the hospital. This implies that the employees at the hospital are worried about the ________.

chain of command

As her business grew and competitors entered the market, Inez knew she had to step up her game. What had worked well when the company was brand new no longer enabled her company to meet its goals. Inez realizes she must become a(n) ________ if her company is to continue to grow and prosper.

change agent

Which of the following is a physical symptom of stress?

changes in metabolism

chapter 8

chapter 8 planning work activities

Chapter 9

chapter 9 Managing Strategy

The marketing plan becomes a part of the ________ section of the business plan.

description of the business

Todd Miller, CEO of Miller's Grocery, has determined that all stores should be well maintained both inside and out. This is an example of a ________.

directional plan

In which of the following traditional organizational designs does duplication of activities and resources lead to an increase in costs and reduced efficiency?

divisional structure

Falling interest rates are an example of what external force?

economic change

"There is absolutely no reason why I, the founder of this enterprise, should be making the choice of floor cleaner. The housekeepers know what works and what doesn't. Let them choose." So said Juan, owner of Miller's Office Cleaning. Juan's comment indicates he believes in ________.

employee empowerment

Gareth is in charge of recruiting at Eowin Systems, and is expected to enhance the diversity of the workforce. Which of the following recruiting sources should Gareth avoid if he is to achieve the stated aim of a more diverse workforce?

employee referrals

Which one of the following factors has contributed to the decline in the number of years used to define short-term and long-term plans?

environmental uncertainty

An organization is in the process of goal setting. It has finished reviewing the organization's mission. What should it do next?

evaluate available resources

Organizations need change because ________.

external and internal factors create the forces for change