MGT exam
9) The manager at Creative Minds Inc. is distressed that employee absenteeism increased by 16% in the past year. How would you recommend the manager respond to this inside force?
Answer:B a) Demonstrate how the firm is committed to simultaneously tackling global social issues and maximizing shareholder wealth. b) Evaluate the HR practices to ensure they are generating the behaviors needed to accomplish strategic goals. 2 Monica Simsek Clemson University MGT2010 ‐ Principles of Management c) Remind employees about how Creative Minds is genuinely connected to supporting youth art programs. d) Identify the frequently absent employees, and replace them with artificial intelligence. Explanation: Job dissatisfaction as expressed through high absenteeism and turnover can be a major signal of the need for change. Strategic HRM suggests the need to evaluate existing human and social capital and the HR practices being used to generate them. The right HR practices are the ones that generate the social processes and behaviors the organization needs to accomplish its goals.
1) When she was a new employee, Valentina's company put extensive time into teaching her the culture and helping her build relationships with her co‐workers. Now that she is the manager, Valentina should be involved with onboarding new employees in her organization.
True, Explanation: Onboarding works best when the people who will be supervising the new employee are involved.
14) Which of the following is accurate in regard to self‐esteem?
answer: A a) People with high self‐esteem are more likely to be independent thinkers with positive thoughts. b) People with low self‐esteem are better at handling failure and are more likely to become leaders. c) People with high self‐esteem have primarily negative thoughts when confronted with failure. d) People with low self‐esteem are more likely to become egotistical and boastful. Explanation: Low‐self‐esteem people confronted with failure have been found to focus on their weaknesses and to have primarily negative thoughts. Moreover, they are more dependent on others and are more apt to be influenced by them and to be less likely to take independent positions.
29) Which of the following are true of leaders?
answer: A a) They conduct planning. b) They organize. c) They rally others. d) They implement a vision. Explanation: Managers conduct planning, organizing, directing, and control. Leaders inspire, encourage, and rally others to achieve great goals. Managers implement a company's vision and strategic plan. Leaders create and articulate that vision and plan.
39) Evan accidentally quoted a customer a price for new flooring that was more than $1,000 less than the actual price. His manager had a choice of punishing Evan or providing him coaching and retraining on how to calculate the cost of flooring correctly. His manager chose to retrain Evan, using the ________ control.
answer: A a) feedforward b) concurrent c) feedback d) evaluation Explanation: Evan's manager wanted to prevent the mistake from happening again, so he used feedforward control. Feedforward control focuses on preventing future problems.
16) Colin is a branch manager for a large freight company. He has noticed low morale lately, perhaps because of the cramped quarters, stricter policies, and lack of raises this year. According to Herzberg, Colin should first concentrate on
answer: A a) hygiene factors. b) needs for achievement. c) esteem needs. d) motivating factors. Explanation: There will always be some employees who dislike their jobs, but the basic lesson of Herzberg's research is that you should first eliminate dissatisfaction (hygiene factors), making sure that working conditions, pay levels, and company policies are reasonable.
20) As a crew chief for the air force, Clint inspects and services fighter jet engines, which protects the lives and safety of military personnel and increases their ability to conduct missions. Clint's job has a high level of
answer: A a) task significance. b) task identity. c) skill variety. d) autonomy. e) feedback. Explanation: Task significance describes the extent to which a job affects the lives of other people, whether inside or outside the organization
5) Hiromi wants to post a vacancy as an external‐only posting. Her manager, Ceci, reminds her about the benefits of posting internally. Which of the following might be a benefit that Ceci is recognizing?
answer: B a) Posting internally and externally saves time and money. b) Internal recruiting boosts retention and commitment. c) Internal applicants are automatically the most qualified for the position. d) Expanding the applicant pool will make selection simpler. Explanation: Internal recruiting may be a wise choice for companies that wish to boost retention by increasing employee commitment and engagement.
3) Pip Pop is an app development firm that prizes creativity and technical skills. If you were the chief people officer of Pip Pop, how would you ensure external fit of the HR system?
answer: B a) Reward cost‐cutting ideas and train employees to be innovative. b) Reward innovative ideas and continually train employees on the latest computer programming languages. c) Define job performance based on the number of lines coded per day. d) Train every employee on basic coding languages and reward critical reviews of competing apps. Explanation: External fit exists when the HR system is aligned with the organization's culture and structure in support of firm‐level strategy.
22) Because self‐managed teams were established at the Kinex plant, the number of electrical components produced has increased by 12% and workers seem to have more positive attitudes. Which statement is most likely TRUE about the self‐managed teams at Kinex?
answer: B a) Self‐managed teams are efficient because the workers do not require as much training. b) The self-managed teams will be most successful when they have proper training and technology access. c) Self‐managed teams usually control all of their own administrative tasks, including hiring and firing workers. d) Because there is no direct supervisor, self‐managed teams typically do not have a leader or any oversight. Explanation: Research provides three takeaways for creating self‐managed teams: (1) ensure a leader quickly emerges, (2) select the right individuals to join the team, and (3) provide proper training for team members. The least common chores of today's self‐managed teams are hiring and firing (staffing).
35) Hana was recently fired from her server position at Big Sky Steakhouse for missing multiple shifts. To retaliate, Hana created fake accounts on several social media networks and falsely posted that the restaurant's kitchen was dirty and the cooks did not adhere to food safety protocols. Hana's posts are considered
answer: B a) misinformation. b) disinformation. c) cyberloafing. d) identity theft. e) defensive. Explanation: Disinformation is information that is false and deliberately misleading
40) Why is it important for management to use a balanced scorecard?
answer: B a) to help employees understand how their work contributes to the company's goals b) to view multiple indicators of performance simultaneously c) to save companies in payroll costs d) to understand the sequence of suppliers that contribute to a product Explanation: The complexity of managing an organization today requires that managers be able to view performance in several areas simultaneously.
15) Stark Industries was just rated number one for job satisfaction by a national surveying company. The report cited that employees at Stark Industries had strong ________, which we would expect based on published job satisfaction research.
answer: B a) turnover and less job involvement b) job involvement and low tardiness c) motivation and higher perceived stress d) life satisfaction and more absenteeism Explanation: Among the key correlates of job satisfaction are stronger motivation, job involvement, organizational commitment, and life satisfaction and less absenteeism, tardiness, turnover, and perceived stress.
30) Ayana leads a team of product engineers. Ayana and one of her team members, Cyrus, often disagree about the best designs for products the team is developing. However, Cyrus knows that Ayana will always listen to his ideas with an open mind and then decide what is best for the project at hand. Ayana has come to rely on Cyrus as the team member who will voice a dissenting opinion because that is what is best for the team. Which outcome would you expect for Cyrus?
answer: B a) very likely to turnover b) strong organizational commitment c) very little organizational citizenship d) many counterproductive behaviors Explanation: In the in‐group exchange, the relationship between leader and follower becomes a partnership characterized by mutual trust, respect and liking, and a sense of common fates. High LMX is associated with individual‐level behavioral outcomes like turnover, organizational citizenship, counterproductive behavior, and attitudinal outcomes such as organizational commitment.
3) Darnell, the marketing director, mentioned to his boss that one of his friends from college, Elena, would be fantastic for the production supervisor opening. Why should Darnell's boss consider this referral?
answer: C a) Hiring referrals is cheaper than external recruiting. b) Referred employees stay longer with the organization. c) Current employees refer others who should be a good fit. d) Darnell is a boomerang who returned to the company eight months ago. Explanation: Current employees are good judges of potential fit. Referrers know what it takes to fit in with the organization's culture and to perform well in specific positions. This helps them to determine which members of their social networks would be a good fit for various jobs
36) A large tire manufacturing facility tracks numerous safety indicators and provides frequent safety training. Each month, if no incidents or unsafe conditions occur, the employees receive a small bonus. The tire manufacturer is using controls to
answer: C a) adapt to change and uncertainty. b) detect opportunities and increase innovation. c) provide performance feedback. d) decentralize decision making and facilitate teamwork. Explanation: Controls help managers coordinate these various elements by providing feedback. Research demonstrates that feedback also has a control function for individuals and teams, and the quality of this feedback affects employee attitudes and performance.
13) Timothy was hiring a new financial analyst, and he had several good candidates. He was leaning toward hiring Jade, a Japanese American woman, because he thinks Asians are better at math. Timothy is exhibiting which distortion in perception?
answer: C a) implicit bias b) recency effect c) stereotyping d) halo effect Explanation: Stereotyping is the tendency to attribute to an individual the characteristics one believes are typical of the group to which that individual belongs.
10) COVID‐19 was an unexpected event that created significant challenges for organizations like Carnival. Based on the Management in Action case, what type of change do cruise lines need to implement?
answer: C a) proactive b) incremental c) reactive d) adaptive Explanation: When managers talk about "putting out fires," they are talking about reactive change, making changes in response to problems or opportunities as they arise.
2) During the two years that Ariana has been the store manager of a Taco Bell restaurant, sales in that store have decreased by 34%, employee turnover has doubled, and the organizational culture is crumbling. Dante, the regional director, should consider
answer: C a) promoting Ariana to regional marketing director. b) transferring Ariana to store manager of the town's other location. c) demoting Ariana back to night‐shift supervisor. d) downsizing Ariana and closing the store. Explanation: Poorly performing employees may be given a warning or a reprimand and then disciplined. Alternatively, an employee may be demoted—that is, have their current responsibilities, pay, and perquisites taken away, as when a middle manager is demoted to a first‐line manager.
38) As the manager of an accounting firm, Alexander is quite busy during the months leading up to the annual tax filing deadline. Alexander has implemented a system whereby the accountants use the firm's proprietary accounting software to prepare and submit their clients' tax returns. Because the typical tax bill is less than $12,500, Alexander requests that the accountants notify him of situations where the client will be expected to pay more than $25,000. This is an example of
answer: C a) statistical process control. b) feedforward control. c) management by exception. d) taking corrective action. Explanation: Management by exception, a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.
17) Which of the following is the best statement of a goal?
answer: D a) Give your very best effort. b) Get through most of those reports by later this month. c) Increase customer satisfaction. d) Reduce production errors by 10 percent by the end of the quarter. Explanation: Goals should be SMART: specific, measurable, attainable, results‐oriented, and have target dates.
12) If you have a(n) ________, you believe you control your own destiny
answer: D a) high level of learned helplessness b) low level of self‐efficacy c) external locus of control d) internal locus of control Explanation: Locus of control indicates how much people believe they control their fate through their own efforts. If you have an internal locus of control, you believe you control your own destiny.
28) Wilma leads a task force charged with restructuring the firm's order‐processing system. The task force is composed of her peers, over whom she has little control and some of whom do not seem to respect her. According to the contingency model, Wilma should adopt a ________ leadership style.
answer: D a) production‐centered b) participatory c) relationship‐oriented d) task‐oriented Explanation: When situational control is very low, Fiedler's model suggests a task‐oriented style will be most effective.
11) According to the locus of control theory, a sales agent with an internal locus of control would be more effective than a sales agent with an external locus of control when working for a company with a compensation system that is heavily dependent on commissions.
answer: True True False Explanation: Because internals seem to have a greater belief that their actions have a direct effect on the consequences of that action, internals likely would prefer and respond more productively to incentives such as merit pay or sales commissions.
33) When Rosalyn comes into the office, she speaks to no one, shuts her door, and is rarely seen again until lunch. She supervises a team of 12 people though. Carmelita has a new idea she would like to share with management, but is unsure if she should take it to Rosalyn. How would you describe this upward communication?
answer: a a) lacking trust b) proper use of a rich medium c) missing a chain of command d) confusing semantics Explanation: Upward communication flows from a lower level to a higher level(s). Effective upward communication depends on an atmosphere of trust. Employees are less likely to pass on bad news or share new ideas when they don't trust the boss.
37) Why is it important to control the supply chain?
answer: b a) Control of the supply chain influences the work processes and levels of performance through a set of accepted norms. b) As a major cost center, it is important to pay attention to the financial impact of sourcing, shipping, and warehousing. c) Controlling the supply chain means it can be used to monitor employees and assess job satisfaction, engagement, and leadership. d) It increases employee commitment and workers taking responsibility for their performance. Explanation: The supply chain is the sequence of suppliers that contribute to creating and delivering a product, from raw materials to production to final buyers. Supply chains are a major cost center for most companies, and the way firms structure the distribution of their products can have enormous financial impact.
18) Peyton's management professor just told her class that the final exam is optional for students like Peyton who currently have an A. Peyton decides to take the exam anyway because she likes the subject and wants to master the material. Peyton is motivated to take the exam by a(n)
answer: b a) hygiene factor. b) intrinsic reward. c) need for achievement. d) extrinsic reward. Explanation: An intrinsic reward is the satisfaction, such as a feeling of accomplishment that a person receives from performing the particular task itself.
24) While guests at the Ritz‐Carlton, a family on an international trip could not locate the grocery staples that were safe for their son who had numerous food allergies. The Ritz‐Carlton staff, in coordination with the head chef, arranged to fly the items in from another city. How is the Ritz‐Carlton using norms?
answer: b a) to clarify role expectations b) to emphasize its important values and identity c) to help individuals avoid embarrassing situations d) to help the group survive Explanation: Norms are enforced to emphasize the group, team, or organization's central values or to enhance its unique identity.
25) Which of the following is an example of a dysfunctional conflict?
answer: b a) two colleagues loudly discussing how to move forward on a project b) a manager telling an employee that his work visa can be revoked at anytime c) a small group anxiously sharing an idea with a new manager d) meeting members openly debating divergent perspectives Explanation: Dysfunctional conflict is conflict that hinders the organization's performance or threatens its interests.
32) Paulina manages a fast food restaurant. Which of the following represents Paulina dealing with a personal barrier to communication?
answer: c a) When Paulina notices a customer who is clenching her fists and glaring angrily into the kitchen, Paulina warmly greets the customer and asks what she can do to help. b) After hiring two new employees who speak Portuguese, Paulina has the employee handbook and all the restaurant's signs translated. c) Feeling overwhelmed by the high volume of e‐mails, reports, and customer calls, Paulina decides to walk around the exterior of the restaurant for 15 minutes. d) Paulina orders new cash registers because the old ones could not integrate credit cards sales in with cash purchases. Explanation: Personal barriers are individual attributes, such as attentional issues, that hinder communication. Taking a digital break is one way to reduce the impact of attentional issues on communication.
31) Matek, a realtor, knows about a great deal on a property in the country, but his clients, Julian and Karida, insist on only looking at downtown lofts. Matek feels that Julian and Karida would switch realtors if he showed them a property in the country, so he does not tell them about it. The result is a receiver barrier.
answer: false True False Explanation: A sender barrier occurs when no message gets sent
23) An example of a maintenance role is an initiator, someone who suggests new goals or ideas.
answer: false True False Explanation: A task role, or task‐oriented role, consists of behavior that concentrates on getting the team's tasks done. An example is initiators, who suggest new goals or ideas.
26) A leader in a rigid, bureaucratic culture is more likely to be inspirational, influential, considerate, and intellectually stimulating than a leader in a flexible, adaptive organizational culture.
answer: false True False Explanation: Adaptive, flexible organizational cultures are more likely than are rigid, bureaucratic cultures to foster transformational leadership.
34) Formal channels of communication are typically faster than the grapevine.
answer: false True False Explanation: The grapevine is the unofficial communication system of the informal organization. The grapevine is faster than formal channels, is always operating, but is not always accurate.
7) BP's efforts to close the blowout preventer and install a containment dome following an explosion on the Deepwater Horizon drilling rig is an example of ________ change.
answer: reactive a) radical b) incremental c) proactive d) reactive Explanation: When managers talk about "putting out fires," they are talking about reactive change, making changes in response to problems or opportunities as they arise. This is exactly what happened with BP's response to the oil spill.
27) According to the contingency leadership model, a leader with a task‐oriented style would be more effective than a leader with a relationship‐oriented style in a situation characterized by unambiguous and routine job tasks, high follower trust in leadership, and significant leader authority to reward and punish followers.
answer: true True False Explanation: According to the contingency leadership model, the combination of high task structure, good leader‐member relations, and strong position power creates a high‐control situation, and a task‐oriented leadership style is more effective than a relationship‐oriented leadership style in a high‐control situation
8) Crowdsourcing is an example of innovation
answer: true True False Explanation: Crowdsourcing, defined as "the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people" typically via the Internet, is being used by more companies to help innovate
19) Zian praised his team for staying late to finish their work. He told them it was appreciated by the company and that he recognized they were sacrificing important family time to complete this project. Zian was implementing positive reinforcement.
answer: true True False Explanation: Positive reinforcement is the introduction of positive consequences to strengthen the likelihood that a particular behavior will occur again in the future
6) Walt Disney Company's investment of $1 billion into a wearable technology that it hopes will revolutionize the way visitors spend money at Walt Disney World, featuring a website ("My Disney Experience") and data‐collecting wristbands ("MagicBands") that interact with scanners throughout the theme park, is an example of proactive change.
answer: true True False Explanation: Proactive change, or planned change, involves making carefully thought‐out changes in anticipation of possible or expected problems or opportunities.
21) Thirty‐two new employees from Market Enterprises are attending orientation, receiving information about company policies, and filling out various forms. These employees comprise a group.
answer: true True False Explanation: These employees are a group—two or more freely interacting individuals who share norms, share goals (attending orientation), and have a common identity (employees of Market Enterprises).
