Principles of Business Management ch 6-10

________ is the assignment of different tasks to different people or groups in an organization. Select one: A. Locus of control B. Supply chain C. Value chain D. Division of labor E. Standardization

D. Division of labor

________ is the process by which enterprising individuals initiate, manage, and assume the risks and rewards associated with a business. Select one: A. A start-up B. Joint venture C. A partnership D. Entrepreneurship E. An incubator

D. Entrepreneurship

________ form the largest unemployed minority population in the United States. Select one: A. Catholics B. Asians C. Young adults D. People with disabilities E. Married individuals

D. People with disabilities

The ________ is a leadership perspective that focuses on individual leaders and attempts to determine the personal characteristics that great leaders share. Select one: A. leadership grid B. situational model C. leader-member exchange theory D. trait approach E. relationship-motivated leadership

D. trait approach

________ is an enterprise having fewer than 100 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices. Select one: A. An entrepreneurial venture B. An incubator C. A nonprofit organization D. A greenfield venture E. A small business

E. A small business

In a(n) ________ organization, important decisions usually are made at the top. Select one: A. flat B. informal C. organic D. decentralized E. centralized

E. centralized

Managers must ________ the supply of labor, which refers to how many and what types of employees the organization actually will have. Select one: A. create B. evaluate C. train D. recruit E. forecast

E. forecast

Which of the following is most likely to help employers in preventing an exodus of talent, and retaining skilled and knowledgeable older workers? Select one: A. limiting training for older employees B. increasing the number of work hours C. micromanaging older employees D. emphasizing on physical effort E. introducing phased retirement programs

E. introducing phased retirement programs

On a day-to-day basis, which of the following is a concern of human resources managers? Select one: A. funding increased salaries B. analyzing product failure C. assessing the financial transactions D. deciding which products to market E. managing layoffs

E. managing layoffs

In the trait approach to leadership, which of the following traits distinguishes effective leaders from other people? Select one: A. material possessions B. education C. command-and-control attitude D. high emotional quotient E. self-confidence

E. self-confidence

Effective managers are necessarily true leaders. Select one: True False

False

Recruitment refers exclusively to external applicants. Select one: True False

False

The most popular selection tools are applications and résumés. Select one: True False

False

According to the trait approach to leadership, some personality characteristics do distinguish effective leaders from other people. Select one: True False

True

Management by objectives involves a subordinate and a supervisor agreeing in advance on specific performance goals. Select one: True False

True

People are a source of competitive advantage when their skills, knowledge, and abilities are not equally available to all competitors. Select one: True False

True

The first affirmative action programs were initiated to correct the past exclusion of women and minorities from the business world. Select one: True False

True

The traditional American image of diversity emphasized assimilation. Select one: True False

True

To be successful, partners in a strategic alliance must pay attention to human relationships. Select one: True False

True

________ involves creating new systems, resources, or processes to produce new goods or services and/or serve new markets. Select one: A. Entrepreneurship B. Advertising C. Transporting D. Micropayment E. Profiteering

A. Entrepreneurship

________ occurs when unwelcome sexual conduct has the purpose or effect of unreasonably interfering with job performance. Select one: A. Hostile environment B. Class action C. Nepotism D. Social loafing E. Free riding

A. Hostile environment

Which of the following is the most difficult part of human resource planning? Select one: A. demand forecasts B. professional development C. labor forecasts D. job analysis E. employee recruitment

A. demand forecasts

A small business is often defined as having fewer than ________ employees, as well as being independently owned and operated. Select one: A. 400 B. 100 C. 500 D. 200 E. 300

B. 100

When a software company developed a new phone, it determined how many production and marketing employees would be required for the launch. The company was involved in Select one: A. outplacement. B. demand forecasting. C. performance appraisal. D. job analysis. E. training and development.

B. demand forecasting.

Even though leaders know what they want, they still have to be able to communicate it to Select one: A. stakeholders. B. other people in the organization. C. other people outside the organization. D. the media. E. customers.

B. other people in the organization.

In the context of delegation, a problem faced by a subordinate in carrying out a delegated task is Select one: A. having to report to the manager about the status and quality of performance. B. having the power to take corrective action. C. being given more responsibility than authority. D. eliminating any opportunity for creativity. E. depending on autonomy than close supervisory control.

C. being given more responsibility than authority.

Which of the following is the main reason behind the projected slowdown in the pace of growth of the labor force in the United States and other developed countries? Select one: A. increased diversity in the workforce B. introduction of affirmative action C. lower birth rates D. emergence of the baby boom generation E. lower mortality rates

C. lower birth rates

In the context of strategic human resources management, people can increase ________ by helping lower costs, providing something unique to customers, or both. Select one: A. motivation B. benchmarking C. value D. turnover E. buffering

C. value

Leaders serve people best by helping them develop their own initiative and good judgment, enabling them to grow, and helping them become better contributors. Select one: True False

True

Organizations that encourage intrapreneurship face the obvious risk that this effort can fail. Select one: True False

True

Organizations with an organic structure are much less rigid than mechanistic organizations. Select one: True False

True

Pluralistic organizations use an affirmative action approach, actively trying to hire and train a diverse workforce and to prevent any discrimination against minority group members. Select one: True False

True

In multicultural organizations, workforce diversity not only exists but is valued. Select one: True False

True

________ is the pursuit of lucrative opportunities by enterprising individuals under conditions of uncertainty. Select one: A. Entrepreneurship B. Sugging C. Incubation D. Skunkworks E. bootlegging

A. Entrepreneurship

________ are new venture creators working inside big companies; they are corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea. Select one: A. Intrapreneurs B. Management novices C. Licensees D. Sole proprietors E. Entrepreneurs

A. Intrapreneurs

What is lacking when the focus becomes how to survive day to day? Select one: A. a clear vision B. a mission statement C. a desirable product D. incompetent leaders E. adequate pay

A. a clear vision

When organizations have more people than they need, they can use ________ to reduce the surplus if they have planned far enough in advance. Select one: A. attrition B. job specifications C. promotion D. job analysis E. outsourcing

A. attrition

At a restaurant, employees who perform poorly during a particular shift are scheduled for the unpopular weekend shifts by the manager. In this case, the manager exercises his ________ power. Select one: A. coercive B. negative C. expert D. legitimate E. referent

A. coercive

Which of the following is an activity that is conducted during the human resources planning process? Select one: A. demand forecast B. training and development C. environmental scanning D. internal recruiting E. outplacement

A. demand forecast

The term ________ is used to refer to all kinds of differences including religious affiliation, age, disability status, economic class, and lifestyle in addition to gender, race, ethnicity, and nationality. Select one: A. diversity B. relativism C. dexterity D. specialization E. differential advantage

A. diversity

Entrepreneurs are not Select one: A. making only safe decisions. B. risk managers. C. risk takers. D. tolerant of stress. E. able to resolve problems.

A. making only safe decisions.

In the United States, demographic trends have contributed to a Select one: A. shortage of unskilled and highly educated workers. B. shortage of unskilled and poorly educated workers. C. shortage of job opportunities for skilled workers. D. shortage of skilled and highly educated workers. E. shortage of skilled and poorly educated workers.

A. shortage of unskilled and highly educated workers

In a vertical structure, narrow spans of control build a(n) ________ organization with many reporting levels. Select one: A. tall B. wide C. informal D. flat E. decentralized

A. tall

Brenda has recently been denied a promotion. This is the third time she was turned down for promotion despite excellent performance reviews. Her manager assures her that she was qualified for the promotion but "that's just the way things go." After this latest disappointment, Brenda did an in-depth research on the history of her company. She found that only two women candidates had been promoted to upper management positions in the company's entire history. Which of the following factors is most likely obstructing Brenda's career growth? Select one: A. the glass ceiling effect B. an affirmative action C. a wide span of control D. a diversity-oriented employer E. the black swan effect

A. the glass ceiling effect

Which of the following statements regarding leadership vision is accurate? Select one: A. A strong leader succeeds without developing a clear vision. B. A person or team can develop a vision for any organization. C. A vision helps an organization maintain the status quo. D. A vision exists only at the higher levels of an organization. E. A vision focuses only on performance and day-to-day survival.

B. A person or team can develop a vision for any organization.

________ is the expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance. Select one: A. Mutual adjustment B. Accountability C. Job specialization D. Unity-of-command E. Span of control

B. Accountability

________ today refers to far more than skin color and gender. Select one: A. Glass ceiling B. Diversity C. Affirmative action D. Quid pro quo E. Disability

B. Diversity

________ spot, create, and exploit opportunities. Select one: A. Managers B. Entrepreneurs C. Consumers D. Franchisors E. Intrapreneurs

B. Entrepreneurs

________ refers to the submission to or rejection of sexual conduct that is used as a basis for employment decisions. Select one: A. Whistleblowing B. Quid pro quo harassment C. Social loafing D. Fundamental attribution error E. Mutual adjustment

B. Quid pro quo harassment

Which of the following steps is most likely to be taken by an organization when faced with a labor deficit? Select one: A. They can begin downsizing. B. They can outsource work to contractors. C. They can offer outplacement to its employees. D. They can make use of attrition to reduce the surplus. E. They can lay off people for poor performance.

B. They can outsource work to contractors.

Academic research shows that a ________ lead to higher growth in entrepreneurial firms. Select one: A. strong employees and good customer service B. clear vision and communication of that vision C. consumer focus and a hierarchy D. good product and marketing of that product E. matrix organization and career ladder

B. clear vision and communication of that vision

Edgar was a manager at a company that produced household appliances. He had many innovative ideas to increase profits. However, his ideas were not received well by the company. So, he left the company to pursue his own business. His new business is known as a(n) Select one: A. spin-off. B. entrepreneurial venture. C. merger D. angel investment. E. franchise

B. entrepreneurial venture.

The final stage in the human resources planning process involves Select one: A. discharging employees ineffective at realizing organizational goals. B. evaluating the activities conducted to ensure that they are producing the desired results. C. distributing compensation adjustments. D. restarting the entire process. E. evaluating the decisions made for legal compliance.

B. evaluating the activities conducted to ensure that they are producing the desired results.

A leader who has ________ power has certain knowledge; people comply because they believe in, can learn from, or can otherwise gain from that knowledge. Select one: A. legitimate B. expert C. coercive D. referent E. reward

B. expert

A(n) ________ is an innovator who has created at least one successful store and seeks partners to operate the same concept in other local markets. Select one: A. entrepreneur B. franchisor C. intrapreneur D. employee E. manager

B. franchisor

In a(n) ________ organization, managers encourage employees to work more as teammates than as subordinates who take orders from the boss. Select one: A. formal B. organic C. mechanistic D. bureaucratic E. hierarchical

B. organic

The organization chart depicts the Select one: A. geographical location of the different branches of a business. B. positions in the firm and the way they are arranged. C. phone numbers for each employee. D. office assignments by area of the firm. E. responsibilities of each job specification.

B. positions in the firm and the way they are arranged.

Which of the following is best described as a mental image of a possible and desirable future state of an organization? Select one: A. authority B. vision C. leadership D. expertise E. power

B. vision

________ is an entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow and a partner who manages a new store of the same type in a new location. Select one: A. An initial public offering B. The subscription model C. Franchising D. Bootlegging E. The affiliate model

C. Franchising

________ is the process in which different individuals and units perform different tasks. Select one: A. Formalization B. Mutual adjustment C. Specialization D. Span of control E. Standardization

C. Specialization

Observers say that in contemplating one's business, one must start with Select one: A. a good location. B. investors. C. a great idea. D. family support. E. financial capital.

C. a great idea.

In ________ organizations, more decisions are made at lower levels of management. Select one: A. tall B. formal C. decentralized D. narrow E. mechanistic

C. decentralized

In the context of human resources management, the planning stage involves Select one: A. evaluating the results of implemented programs. B. training of hired individuals. C. ensuring the availability of the right number and types of people. D. determining the pay scales of employees. E. determining appropriate automation methods.

C. ensuring the availability of the right number and types of people.

In the context of human resources management, the programming stage involves Select one: A. calculating legally justifiable compensation levels. B. determining appropriate automation methods. C. implementing specific activities like recruitment. D. hiring and firing employees. E. evaluating employee performance levels.

C. implementing specific activities like recruitment.

When working for a software company, David created a new venture based solely on his idea while using his company's proprietary technology. David can be described as a(n) Select one: A. venture capitalist. B. franchisee C. intrapreneur. D. angel investor. E. quasi partner.

C. intrapreneur.

In the vertical structure of a firm, authority is the Select one: A. ability of managers to avoid accountability for their subordinates' actions. B. power of subordinates to reject the work responsibility delegated to them without any reason. C. legitimate right of a manager to make decisions and to tell other people what to do. D. unconditional power of managers to discriminate against their subordinates based on race, ethnicity, or gender. E. influence a manager has over his or her subordinates' personal life.

C. legitimate right of a manager to make decisions and to tell other people what to do.

Managing diversity at the workplace typically involves such basic activities as Select one: A. separating minority employees from the majority. B. ensuring that there are no cultural differences between those employed. C. recruiting individuals with different backgrounds. D. hiring less qualified individuals over those who are more qualified. E. excluding minorities from the workforce

C. recruiting individuals with different backgrounds.

A leader with ________ power has personal characteristics that appeal to others. Select one: A. expert B. reward C. referent D. legitimate E. coercive

C. referent

An employee who has ________ is supposed to carry out specified tasks. Select one: A. unity-of-command B. span of control C. responsibility D. coordination E. authority

C. responsibility

Which of the following is a function of a job analysis? Select one: A. to determine if recruiting should be done internally or externally B. to determine the applicant's educational level C. to describe the skills and knowledge needed D. to provide a demographic profile of the "correct" candidate E. to provide a basis for compensation to be paid

C. to describe the skills and knowledge needed

________ is a structure with authority directly related to the three broad levels of the organizational pyramid. Select one: A. Specialization B. Locus of control C. Division of labor D. Hierarchy E. Value chain

D. Hierarchy

________, in the trait approach to leadership, is the correspondence between actions and words. Select one: A. Positive reinforcement B. Initiative C. Extinction D. Integrity E. Punishment

D. Integrity

In an organization, ________ may be valuable when departments have different priorities or conflicting goals, which need to be mediated by top management. Select one: A. decentralization B. wide spans of control C. standardization D. centralization E. external locus of control

D. centralization

In ________ new or additional responsibilities to a subordinate are assigned. Select one: A. job specialization B. mutual adjustment C. centralization D. delegation E. span of control

D. delegation

In the context of the vertical structure of a firm, a wide span of control builds a ________ organization with few reporting levels. Select one: A. tall B. formal C. centralized D. flat E. bureaucratic

D. flat

Entrepreneurs experience stress, but they also have high job satisfaction. They tend to be Select one: A. more healthy and more likely to retire than those who work for others. B. less healthy and more likely to retire than those who work for others. C. less healthy and less likely to retire than those who work for others. D. more healthy and less likely to retire than those who work for others.

D. more healthy and less likely to retire than those who work for others.

Behaviors that cause hostile environment in an organization typically include Select one: A. engaging in free riding. B. minimizing the glass ceiling effect. C. taking affirmative action against discrimination. D. pervasive displays of pornography. E. participating in social loafing.

D. pervasive displays of pornography.

Human resource planning involves ________ stages. Select one: A. four B. six C. two D. three E. five

D. three

________ use networks of contacts more than formal authority. Select one: A. Small businesses B. Managers C. Franchisees D. Franchisors E. Entrepreneurs

E. Entrepreneurs

________ create new independent businesses with the benefit of corporate support. Select one: A. Observers B. Franchisors C. Franchisees D. Corporate managers E. Intrapreneurs

E. Intrapreneurs

To correct the past exclusion of women and minorities, companies introduced ________ special efforts to recruit and hire qualified members of groups that have been discriminated against in the past. Select one: A. class action suits B. groupthink C. social audits D. ethnocentrism E. affirmative action

E. affirmative action

Mila was refused a job, in spite of the fact that she had all the required qualifications. The reason for this rejection was that she reacted negatively to an illicit comment made by her interviewer on her dressing. Based on the given information, it would be most accurate to say that Mila is a victim of Select one: A. whistleblowing. B. nepotism. C. larceny. D. social loafing. E. sexual harassment.

E. sexual harassment.

A diverse workforce inhibits organizational flexibility because the organization's culture cannot tolerate different styles and approaches. Select one: True False

False

According to the trait approach to leadership, need for achievement predicts success for division heads in larger and more bureaucratic firms. Select one: True False

False

Advanced degrees are more important for leaders than acquired expertise in matters relevant to an organization. Select one: True False

False

An entrepreneur is not a manager but engages in additional activities that all managers do. Select one: True False

False

Cross-cultural management is limited to U.S. employees going abroad. Select one: True False

False

In the context of an organization's vertical structure, traditionally authority resides in people and not in positions. Select one: True False

False

In the context of strategic human resources management, a group of well-chosen, motivated people is easy to imitate. Select one: True False

False

Large organizations are typically more organic and less bureaucratic than small ones. Select one: True False

False

True leadership involves dealing with the ongoing, day-to-day complexities of organizations. Select one: True False

False

CEOs play a crucial role in promoting entrepreneurship within large corporations. Select one: True False

True

Calamities such as wars and natural disasters can provide opportunities for entrepreneurs. Select one: True False

True

Charisma can contribute to transformational leadership. Select one: True False

True

Coaching—being trained by a superior—is usually the most effective and direct way to develop managers. Select one: True False

True

Companies with a reputation for providing opportunities for diverse employees will have a competitive advantage in the labor market. Select one: True False

True

Erica works in the human resources department of an insurance company. Therefore, she works in a staff department rather than a line department. Select one: True False

True

Servant-leadership is a way of relating to others to serve their needs and enhance their personal growth while strengthening the organization. Select one: True False

True

Stereotypes can cost the organization dearly by stifling employees' ambition so that they don't fully contribute. Select one: True False

True

Transactional leadership approaches may be more effective for individualists than for collectivists. Select one: True False

True