Management Exam 1

Managers of high-performing companies tend to consider the interests of the most profitable stakeholder groups as they make decisions.

false

Most babies born in the United States recently are whites of European descent.

false

Only when a country's political/legal environment is unstable or revolutionary is it of concern to managers.

false

Rules and procedures are the same.

false

The Global Contract is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption.

false

The availability bias describes the actions of decision makers who try to create meaning out of random events.

false

The decision-making process begins by identifying decision criteria.

false

The four contemporary functions of management are planning, organizing, commanding, and controlling.

false

The legal approach to going green is also known as the dark green approach.

false

EPA regulations permit the release of 150 micrograms of particulate matter per cubic meter of air every 24 hours from paint shops. Utilimotors, a utility truck maker, monitors its emissions so it releases between 140 and 150 micrograms. Which approach of green management does Utilimotors use?

legal approach

"All employees must be at their work stations and ready to work by the time the buzzer sounds." This is an example of ________.

"All employees must be at their work stations and ready to work by the time the buzzer sounds." This is an example of ________.

Which one of the following organizations is best suited to promote ethical behavior in its employees?

An organization that has formal rules and regulations in place.

Moreno's Pub Burgers has enjoyed its status as the Numero Uno hamburger restaurant in Pleasantville for the past ten years. Its only competitor is a national fast food chain preferred by children rather than adults. Which of the following, if true, would make Moreno's business environment more uncertain?

Because of the growth of Pleasantville's population, more hamburger chains build facilities in Pleasantville.

Johnson Controls violated the ________ Act when it denied women the option to apply for positions in the lead battery room.

Civil Rights, 1964

Which one of the following statements highlights the shared aspect of culture?

Even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization's culture in similar terms.

Which of the following most accurately reflects the symbolic view of management?

External forces are responsible for an organization's success or failure.

A manager's job is all about personal achievement.

False

Directing and motivating are part of the organizing function of management.

False

Which one of the following represents the basic difference between multidomestic corporations and global companies?

Multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country.

Which one of the following would make Mary realize that the company where she works has a strong culture?

Most employees are aware of company history.

Which of the following statements is true of gender diversity in workplaces?

No consistent male-female differences exist in problem-solving ability, analytical skills, competitive drive, motivation, sociability, or learning ability.

Which of the following factors is a sociocultural component of an organization's external environment?

Over time, society has become more accepting of alternative lifestyles.

Melanie had been buying raw materials locally but she is being underpriced by her competitors. She thinks there might be lower-cost materials elsewhere. What advice would you give Melanie?

She should engage in global sourcing.

________ skills tend to be more important for first-line managers since they manage employees who produce the organization's product or service the organization's customers.

Technical

Jack moved to China to manage his company's production facility there. Immediately he instituted the company practice of recognizing an employee of the month. The Chinese employees were horrified. Why might this be so?

The employees are acting on their national cultural behavior patterns.

Which of the following environments is characterized by the highest level of environmental uncertainty?

a dynamic and complex environment

Faced with incomplete information about the future national economic conditions, many employers have eschewed the tradition of hiring full-time, permanent employees in favor of ________.

a flexible work arrangement that includes freelancers and temporary workers

Under what approach is the organization driven to look for ways to respect and preserve the earth and its natural resources?

activist approach

The centerpiece of the ________ efforts is the Anti-Bribery Convention that was the first global instrument to combat corruption in cross-border business deals.

being socially responsive

If Marla's company changed its organizational structure from one based on country to one based on industry groups, it would best be considered a ________.

borderless organization

Evelyn's Internet search for information about "vendor for machine screws" yielded more than 100,000 items. Evelyn did not have time or resources to pursue each of these so she limited her search to only vendors in her state. By doing this, Evelyn used ________.

bounded rationality

Before actually putting the decision into action, the decision-maker may find it prudent to ________.

check to make sure the conditions that existed at the time of the decision still exist, and make sure the decision is still the best one

The period of time from the 1960s to 1970s focused on ________.

complying with laws and regulations through affirmative action policies and programs

Beth hired Tom, trained him, coached him, and expected he would be her eventual replacement when she moved up in the company. She noted each of his accomplishments with pride but wrote off as vicious gossip the comments from Tom's co-workers that he was making too many mistakes. Beth is experiencing the ________.

confirmation bias

The process of monitoring, comparing, and correcting is called ________.

controlling

When Joe checks the amount of output that the employees have completed and the number of units that have been rejected, he is performing which of the following management functions?

controlling

The ________ component of an organization's external environment is concerned with trends in population characteristics such as age, race, gender, education level, geographic location, income, and family composition.

demographic

Organizing includes ________.

determining who does what tasks

A dynamic and simple environment is characterized by the greatest level of environmental uncertainty.

false

A dynamic environment is characterized by the absence of new competitors, few technological breakthroughs by current competitors, and little activity by pressure groups to influence the organization.

false

According to projections of the U.S. population, the ethnic groups that will exhibit the most change are the Hispanic and African American populations.

false

Effectiveness refers to getting the most output from the least amount of input.

false

Employees either agree with the concept of sustainability or they don't; it is costly and ineffective to try to create a culture of sustainability.

false

Employees who raise ethical concerns or issues to others inside or outside the organization are called social activists.

false

Environmental uncertainty refers to the number of components in an organization's environment and the extent of the knowledge that the organization has about those components.

false

Firms that compete in non-technology markets, such as retailers, need not concern themselves with innovation.

false

For the sake of clarity, the constraints imposed on managers by the organization's culture are explicitly stated in the employee handbook.

false

The most outspoken advocate of the classical view of organizational social responsibility is Alan Greenspan.

false

When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities, it is said to be socially responsive.

false

Worldwide population trends indicate that we will witness dwindling labor supply and increasing total global savings rates.

false

Men are found to follow a nurturing, inclusive, and collaborative style of leadership, in contrast to women.

fasle

Granval manages a production facility in Aughmenistan for a multinational company headquartered in Paris. His Paris bosses emphasize the importance of operating his plant efficiently so as to conserve scarce resources. It is likely Granval's employer is

global company

Marco works for a multinational corporation as a plant manager but must receive approval from the home office for any management changes to production processes. Marco most likely works for a ________.

global company

Rules of thumb that managers use to simplify decision making are known as ________.

heuristics

"In this company, what you do matters a whole lot more than your last name." Bill's father, the company founder, expected Bill's supervisor to mentor the young man, to help him set goals, to train him and to develop his managerial skills with an emphasis on continuous improvement. Bill likely lives in a country with a ________.

high performance orientation culture

Technical skills include ________.

job specific knowledge needed to proficiently perform work tasks

The Foreign Corrupt Practices Act makes it illegal for U.S. firms to ________.

knowingly corrupt a foreign official

The idea that businesses should eliminate discrimination with respect to employment and occupation is a Global Compact principle in the area of ________.

labor standards

Two of Brent's subordinates have not been getting along, a situation that has now interfered with their productivity. When Brent meets with them to resolve the conflict, he is engaged in ________.

leading

Mary belongs to a group that requires women to wear long sleeves, long skirts or dresses, hair done up in a bun, and a small hat. Her coworkers often make negative comments about her appearance. In this situation, Mary is subjected to ________.

mockery and insults

The ________ decentralizes its management and other decisions to the local country.

multidomestic corporation

Lila believes the global climate is changing. Every storm, every volcano eruption, every earthquake is, in her mind, evidence of this climate change. Lila has fallen victim to ________ bias.

selective perception

Structured problems align well with which type of decisions?

programmed

The last time the Whigs took over Congress, stock prices rose dramatically and unemployment fell to record lows. Once again, the Whigs are in power, so Jason expects his stock portfolio to grow significantly. Jason's thinking may be influenced by the ________.

representation bias

Groups made up of employees connected by some common dimension of diversity are known as employee ________.

resource groups

"Smoking and the consumption of alcohol are strictly prohibited inside the work Premises." This is most likely an example of a(n) ________.

rule

A ________ is an example of a first-line manager.

shift manager

A ________ is an individual or organization who seeks out opportunities to improve society by using practical, innovative, and sustainable approaches.

social entrepreneur

When PETA supporters picketed Avon products because of its use of animals in the testing of its cosmetics, Avon changed its practices and stopped testing on animals. In this situation, Avon exercised ________.

social responsiveness

Companies that wish to emphasize ________ should develop it into the corporate culture.

sustainability

Conceptual skills involve ________.

thinking about abstract and complex situations

The organizational chart shows titles such as front-line manager, plant manager, and vice president of operations. It is very likely this organization has a ________.

traditional pyramid structure

A decision criterion defines what is important or relevant to resolving a problem.

true

A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety.

true

A portion of a manager's job, especially at lower organizational levels, may entail duties that are often more clerical than managerial.

true

A programmed decision is a repetitive decision that can be handled by a routine approach.

true

A strategic alliance is a partnership between an organization and a foreign company partner in which both share resources and knowledge in developing new products or building production facilities.

true

Americans tend to suffer from parochialism.

true

As part of Dave's controlling function of management, he must monitor and evaluate performance.

true

Design thinking is an interesting new line of thinking with broad implications for making effective business decisions by integrating emotional elements into the process.

true

It is important that firms be concerned with both the ends and the means used to achieve them.

true

Managers use decision-making in every function, from planning to controlling.

true

Managers with an ethnocentric attitude do not trust foreign employees with key decisions or technology.

true

Mexico is an example of a collectivistic nation.

true

Organizations help employees adapt to the culture through socialization.

true

Risk is the condition in which a decision maker is able to estimate the likelihood of certain outcomes.

true

Strong cultures have more influence on employees than do weak cultures.

true

Technical skills become less important as a manager moves into higher levels of management.

true

The United States is an example of a country with low power distance.

true

The greater the probability that some action will cause harm, the greater the intensity of the issue.

true

The main reason for the predicted stabilization of world population growth by 2050 is the decline in birthrates as nations advance economically.

true

The sunk costs error occurs when decision makers forget that current choices cannot correct the past.

true

The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives.

true

When employees are evaluated only on outcomes, they may be pressured to do whatever is necessary to look good on the outcomes, and not be concerned with how they got those results.

true

When the original members formed the European Union in 1992, the primary motivation was to reassert the region's economic position against the United States and Japan.

true

Social media is a communications tool which should be ________.

used to foster cooperation and collaboration

Bettina likes to know the end from the beginning. She gathers as much information as possible before making a decision. Bettina likely lives in a culture ________.

with high uncertainty avoidance

Heinrich, a purchaser for an optics company in Germany, must place an order for materials for use in its production process. He is most likely to order from a company ________.

within the European Union because there would be no barriers to trade