Management Exam 2

Elena is a sales representative. She gets paid a base salary plus a percentage of sales attained as a commission for a period of time. Her pay is an example of_______. o a merit pay plan o the Scanlon plan o a gainsharing program o nonmonetary incentives o an incentive pay plan

an incentive pay plan

As a small business owner, Ahmed feels he has identified a market that no one else is currently serving. Which of the strategic challenges facing small firms is Ahmed developing? o Getting financing o Choosing an industry in which to compete o Identifying distinctive competencies o Selecting a location o Writing a business plan

o Identifying distinctive competencies

Which of the following describes cognitive dissonance? o It is a person's beliefs about his or her capabilities to perform a task. o It is the extent to which people believe that their behavior has a real effect on what happens to them. o It is the conflict individuals may experience among their own attitudes. o It refers to a person's ability to manage multiple tasks and to consistently meet deadlines. o It is the attitude that reflects one's feelings and emotions towards a situation.

o It is the conflict individuals may experience among their own attitudes.

Which of the following involves systematically moving employees from one job to another? o Job enlargement o Job rotation o Job deskilling o Job specialization o Job enrichment

o Job rotation

In which type of organization might there be a lot of employees but little or no underlying functional hierarchy? o Learning o Team o H-form o Virtual

o Team

Aviva's company frequently needs a software specialist to update its highly unique computer systems. Aviva is trying to determine if she should pay the high salary and benefits of a full-time employee or use a contingent employee when needed. What is one reason Aviva would reject the idea of using a contingent workforce? o The high cost of training o The high cost of labor o The high need for flexibility o The high need for knowledge o The high cost of turnover

o The high cost of training

The conflict individuals may experience among their own attitudes is called _____. o risk propensity. o emotional intelligence. o organizational commitment. o cognitive dissonance. o negative affectivity.

o cognitive dissonance.

The means by which a labor agreement is enforced is the _____. o grievance procedure o union rights clause o management rights clause o union security clause o strike/lockout procedure

o grievance procedure

Nokia and Samsung make cell phones. They operate in the ____ industry. o construction o manufacturing o finance o service o wholesale

o manufacturing

The temperature at Nettix Inc. is too cold for Royce to concentrate on his work. This is an example of work-related stressors categorized as _____ demands. o task o physical o role o interpersonal o client

o physical

Which approach to motivation is based on the premise that managers know more about the job than workers and therefore should be paid more? o Content perspective o Human resources approach o Traditional approach o Human relations approach o Scientific management

Traditional approach

Venture capital companies_______. o exchange money for partial ownership in the new business o exclusively fund not-for-profit organizations o grant no-interest loans to small business firms o are federally licensed to grant loans to businesses with more than 20 employees o provide management consulting services to small businesses

exchange money for partial ownership in the new business

Petra believes that when her employees have more control over how their work is performed, they do better. Which characteristic is Petra emphasizing? o Feedback o Task identity o Task significance o Autonomy o Skill variety

o Autonomy

Which of the following is a recent business trend? o Better survival rates of entrepreneurial ventures o Emergence of brick-and-mortar ventures o Decline in the number of small businesses in the retail industry o Decline in opportunities for women o Increased preference for jobs in large corporations

o Better survival rates of entrepreneurial ventures

In what way is a Scanlon plan different from other gainsharing plans? o It provides nonmonetary rewards based on cost savings. o It begins with the measurement of team or group productivity. o Employees receive the majority of the cost savings that the plan achieves o The reward is given to a specific group instead of the entire organization. o The reward replaces annual merit increases.

o Employees receive the majority of the cost savings that the plan achieves

Identify the inducement that an organization provides to its employees. o Effort o Ability o Loyalty o Skills o Pay

o Pay

Family and community relationships outside of work as well as friendships on the job all satisfy the need for _____. o self-actualization o recognition o physiology o belongingness o positive self-image

o belongingness

A(n) _____ is any benefit that comes to a firm because it exploits an opportunity before any other firm does. o comparative advantage o first-mover advantage o economic moat o absolute advantage o core competency

o first-mover advantage

When a manager leaves his or her job to accept a job at another organization, the organization left behind is experiencing _____. o cognitive dissonance o turnover o absenteeism o stereotyping o burnout

o turnover

The _____ stage of the creativity process determines the validity or truthfulness of an insight. o preparation o incubation o insight o verification o cognitive dissonance

o verification

Of the basic strategic challenges facing small firms, which one must be addressed first? o Getting financing o Choosing an industry in which to compete o Identifying distinctive competencies o Selecting a location o Writing a business plan

Choosing an industry in which to compete

Zereth has set up her organization based on product departmentalization. What is the advantage of this approach? o Increased use of pooled interdependence o Use of skilled specialists to deal with unique issues o Objective assessment of product groups o Rapid response to changes in the environment o Improved coordinating activities inside each department

Objective assessment of product groups

Eloisa is a high school student with a high need for achievement. Which of the following is most likely to be true of Eloisa? o She has a desire to assume personal responsibility. o She has a desire for companionship. o She has a desire to be influential in a group. o She has a need to control her environment. o She has a need for safety and security.

She has a desire to assume personal responsibility.

Which of the following statements is true about a franchise agreement? o The franchisee is free to modify the franchisor's products. o The franchisee can consult the franchiser for managerial and financial help. o The franchisee and not the franchiser takes the responsibility of marketing and advertising activities. o The franchisee can keep all the profits made by the venture. o The franchisee does not have to pay a start-up cost for the venture.

The franchisee can consult the franchiser for managerial and financial help.

What is the process of systematically retaining power and authority in the hands of higher-level management? o Pooled interdependence o Decentralization o Coordination o Span of management o Centralization

o Centralization

Which of the following is an example of a work sequence change in a service organization? o Changing line and staff relationships o Changing the way claims are processed o Installing new equipment o Training employees in customer service o Changing the raw materials used

o Changing the way claims are processed

What is the process of grouping jobs according to some logical arrangement? o Job rotation o Job enrichment o Departmentalization o Centralization o Industrialization

o Departmentalization

Why does the fixed-ratio schedule lead to high level of effort? o Each demonstration of performance increases the probability of receiving a reward. o Each behavior gets the person closer to the next reward. o Employees expect that the boss can check on them at any time. o Employees know when to expect their paychecks. o Employees are able to avoid punishment.

o Each behavior gets the person closer to the next reward.

According to the expectancy theory, which of the following conditions must be met for motivated behavior to occur? o Effort-to-performance expectancy must be greater than zero. o Performance-to-outcome expectancy must be less than zero. o The sum of the valences for an outcome must be less than zero. o The individual must believe that effort and performance are unrelated. o Every outcome must have a negative valence.

o Effort-to-performance expectancy must be greater than zero.

Which of the following statements is true about entrepreneurs? o Entrepreneurs hire professional managers to take care of all the business operations. o Professional managers who manage businesses of others are also entrepreneurs. o Entrepreneurs assume the risks of their business ventures. o Entrepreneurs do not participate in planning and organizing activities. o Entrepreneurs do not invest personal savings in their businesses.

o Entrepreneurs assume the risks of their business ventures.

A company has set an objective to increase its product sales by 20 percent in the next two years. According to the comprehensive approach to change, which step of the change process is this company in? o Recognition of the need for change o Establishment of goals for the change o Selection of the appropriate change technique o Planning for implementation of the change o Evaluation and follow-up

o Establishment of goals for the change

Which of the following focuses on how much people want something and how likely they think they are to get it? o Maslow's hierarchy o Two-factor theory o Expectancy theory o Reinforcement theory o Variable work schedule

o Expectancy theory

Which is a contract between an entrepreneur and a parent company that requires the entrepreneur to pay the parent company for the use of its trademarks, products, formulas, and business plans? o Business plan o SBA loan o Franchising agreement o Crowdfunding o Strategic alliance

o Franchising agreement

The _____ design is essentially a holding company that results from unrelated diversification. o H-form o U-form o divisional o departmental o M-form

o H-form

Which of the following is an example of dysfunctional behavior? o Agreeableness o Extraversion o Harassment o Cognitive dissonance o Organizational citizenship

o Harassment

Ugar wants to reward positive behaviors, but he wants to do so in a way that is most effective. What should Ugar do to reward his employees for those behaviors he wants to encourage? o He should provide reinforcements at fixed intervals. o He should provide reinforcements at variable intervals. o He should provide reinforcements after a fixed number of observed behaviors. o He should provide reinforcements after a variable number of observed behaviors. o He should provide reinforcements every time a desired behavior occurs.

o He should provide reinforcements after a variable number of observed behaviors.

Which component of an attitude reflects how an individual expects to behave toward or in the situation? o Affective o Intentional o Cognitive o Working o Locus of control

o Intentional

What is a consideration of current employees as candidates for openings? o Job analysis o Validation o Internal recruiting o Job analysis o External recruiting

o Internal recruiting

When Caryl feels stress, anxiety, fear, or anger, she meditates so that her emotions do not interfere with her work. Afterward she is more productive. Identify the emotional intelligence (EQ) dimension illustrated by Caryl's meditating. o Self-esteem o Managing emotions o Risk propensity o Empathy o Social skill

o Managing emotions

Teresita structures her company activities in predictable ways, and she uses rules, specialized jobs, and centralized authority. Which type of process does Teresita use in her organization? o Decentralized o Continuous-process o Mechanistic o Organic o Small-batch

o Mechanistic

Which refers to pay awarded to employees on the basis of the relative value of their contributions to the organization, which is a performance-based reward arrangement for individuals? o Scanlon plan o Piece-rate incentives o Incentive pay o Merit pay Gainsharing

o Merit pay

Which of the following statements is true about small businesses in the United States? o Small businesses hire at a slower rate than big companies. o Technology is the only sector in which small firms have no presence. o Small businesses are the last to lay off workers during economic downswings. o There are very few small firms in the United States. o Most U.S. workers are employed by small firms.

o Most U.S. workers are employed by small firms.

Which of the following is an example of a company that has identified a new market? o Delta Inc. is offering discounts on its vacuum cleaners. o NutriMax has introduced its low-fat cookies in Asia. o Omega Corp. has modified the packaging of all its products. o Beta Inc. has acquired Venus LLC. Redd Inc. has changed its company logo

o NutriMax has introduced its low-fat cookies in Asia.

According to research by the National Federation of Independent Business, which of the following is the most important source of money for individuals starting up new businesses? o Strategic alliances o Government loans o Personal resources o Banks and private investors o Venture capital companies

o Personal resources

Housing, clothing, and job security would all be included in which of Maslow's need categories? o Security o Physiological o Belongingness o Esteem o Self-actualization

o Physiological

Which type of review method compares each employee with a fixed standard rather than a comparison with other employees? o An objective method o Rating o Ranking o Job specialization o Job enlargement

o Rating

Which of the following serves to weaken organizational commitment? o An individual's age o A sense of job security o Seeing oneself as an outsider o Participation in decision making o Position title and pay scale

o Seeing oneself as an outsider

What are designed to consolidate information from various disciplines and institutions, including technical and professional schools, and share the information with small businesses? o Small Business Development Centers o Small Business Angel Investors o Service Corps of Retired Executives o Active Corps of Executives o Small Business Colleges

o Small Business Development Centers

Which of the following can increase the chance of success when implementing the business change process? o Limiting employee involvement in the process o Refraining from creating a sense of urgency in the organization o Starting the process with a new, clean slate o Limiting communication channels o Refraining from changing company strategies

o Starting the process with a new, clean slate

Which of the following best summarizes the relationship between necessary resources and the prevalence of small businesses in an industry group? o The more resources an industry requires, the easier it is to start a business and the less likely it is that the industry is dominated by small firms. o The more resources an industry requires, the harder it is to start a business and the less likely it is that the industry is dominated by small firms. o The more resources an industry requires, the easier it is to start a business and the more likely it is that the industry is dominated by small firms. o The fewer resources an industry requires, the harder it is to start a business and the more likely it is that the industry is dominated by small firms. o The fewer resources an industry requires, the easier it is to develop a distinctive competency.

o The more resources an industry requires, the harder it is to start a business and the less likely it is that the industry is dominated by small firms.

Which of the following is an advantage of web-based training methods? o They can be easily updated and revised. o They facilitate interpersonal skills better than all other training methods. o They perfectly simulate real activities. o They effectively facilitate face-to-face interaction. o They can be easily used in place of vestibule training methods.

o They can be easily updated and revised.

Petra has lost four employees this year, and she has now learned that Julien, her most creative designer, is leaving the company. Petra needs to focus on the cause of which organizational behavior? o Performance o Absenteeism o Turnover o Cognitive dissonance o Organizational citizenship

o Turnover

When Beta Inc. acquired Redd Communications, there were rumors of staff reductions and operations closures. What was the cause for this reaction by the Redd Communications staff? o Synergy o Process gain o Uncertainty o Process loss o Facilitation

o Uncertainty

Which of the following is an important question that is answered in a business plan? o What are the marketing strategies used by the entrepreneur's competitors? o What are the trade restraint strategies used by businesses in the external environment? o What are the entrepreneur's goals and objectives? o What are the overhead costs of the entrepreneur's venture? o How will the entrepreneur divest strategic business units?

o What are the entrepreneur's goals and objectives?

According to the two-factor theory, which of the following is a hygiene factor that influences an employee's satisfaction or dissatisfaction? o Achievement o Recognition o Working conditions o Advancement and growth o The work itself

o Working conditions

Working a full 40-hour week in fewer than the traditional five days is called _____. o job sharing o flextime o a nine-eighty schedule o a compressed work schedule o a flexible work schedule

o a compressed work schedule

Delta Inc., an electric car maker, initially had financing from a small group of investors seeking to make profits through rapid growth. The investors did not lend money, but invested it in the company in return for stock. Delta's source of financing was________. o personal resources o a commercial bank o a strategic alliance o a venture capital company o a small-business investment company (SBIC)

o a venture capital company

Brianne, a senior engineer, prefers to work in a job that provides her the opportunity to interact with people and make new friends on the job. Brianne has a need for _____. o achievement o affiliation o power o esteem o security

o affiliation

When compared to flat organizations, tall organizations _____. o foster fewer communication problems o foster more employee productivity o are more expensive o place excessive responsibilities on managers o are less bureaucratic

o are more expensive

The financial plan is made up of a cash budget, an income statement, balance sheets, and a_______. o environmental scanning report o management summary o breakeven chart o mission statement o business description

o breakeven chart

Substantive modification to some part of an organization is known as organization o synergy o maturity o implementation o change o entropy

o change

Serena is good supervisor and was recently sent to a two-week educational course by her employer to help her get the skills she needs for promotion to a higher management post. The human resource management concept illustrated in the scenario is _____. o staffing o job rotation o development o training o recruitment

o development

Ana is a police detective and is just as good a detective as her male counterparts. Because she is female, many of her counterparts assume that she will type up their reports as well as her own. She is increasingly feeling underrewarded for her efforts. In terms of _____, she will decrease her inputs by refusing to do additional work and try to reduce the gap between work and rewards. o expectancy theory o reinforcement theory o equity theory o hierarchy of needs theory o two-factor theory

o equity theory

Online postings, executive search firms, referrals by present employees, and hiring walk-ins are all _____ methods. o external recruiting o job analysis o validation o job evaluation o realistic job preview

o external recruiting

Several employees developed a plan to improve the efficiency of the production floor, potentially saving the organization significant amounts of money. As a result, the employees will be given a bonus of 25 percent of the economic gain that results from this plan. This type of incentive pay is known as _____. o fixed-rate pay o profit sharing o gainsharing o a lump-sum bonus o pay-for-knowledge

o gainsharing

Conglomerate organizational design _____. o has the advantage of simplicity associated with holding similar businesses o is also known as a unitary or a U-form approach o is considered to be the easiest and most effective to manage o has each business operated by a general manager in charge of its profits or losses is based on multiple businesses in related areas

o has each business operated by a general manager in charge of its profits or losses

Eleanor, a scientist at Medivac Inc., is developing a prototype for a new vaccine. She is taking a step back from her work to give her ideas some time to mature and develop in her mind. Eleanor is in the _____ stage of the creative process. o preparation o verification o insight o incubation o cognitive dissonance

o incubation

When human resource managers determine how much each worker in a particular wage grade will be paid, they are making a(n) _____ decision. o wage-level o wage-structure o individual wage o benefit-level o overall-benefit

o individual wage

Dorina seems to invent problems where they do not exist. Even when given an ample budget and a roomy schedule, she warns that she may not be able to finish on time and points out all the areas where things could go wrong or come in over budget. Dorina has a high degree of _____. o authoritarianism o cognitive dissonance o negative affectivity o selective perceptions o organizational commitment

o negative affectivity

The National Association of Women Business Owners is best known for providing________. o networking forums for entrepreneurs o 85 different free educational programs each year for entrepreneurs o management consulting for free to small business owners o funds not-for-profit organizations run by women o interests-free loans to women entrepreneurs

o networking forums for entrepreneurs

A change is initiated in the psychological contract between an employee and an organization if the _____. o employee is satisfied with his performance o organization achieves a perfect person-job fit o organization sees an imbalance o employee perceives it to be fair o organization perceive it to be equitable

o organization sees an imbalance

To overcome resistance to change, department managers met with team leaders to share information about new employee policies and procedures that it proposes to implement, and to involve them in the change process. This scenario illustrates the _____ technique, which helps reduce resistance to change. o participation o synergy o deskilling o greenwashing o risk propensity

o participation

Attempting to change the attitudes and values of a company's workforce indicates a change in the area of _____. o people o work processes o organizational control systems o organization structure o task environment

o people

A basic assumption on which the expectancy theory is based is that _____. o behavior is determined by a combination of forces in the individual and in the environment o people do not make decisions about their own behaviors in organizations o different people have the same type of needs, desires, and goals o people make choices based on the extent to which a given behavior will lead to undesired outcomes o people are motivated to seek social equity in the rewards they achieve for performance

o people do not make decisions about their own behaviors in organizations

Anke just started a new work assignment. Other members of the team are expecting her to perform certain jobs that she is not familiar with. Anke's supervisor told her that those duties were not her responsibility and told her what was expected of her. Anke continues to feel pressure from the team to complete the unfamiliar tasks. Anke is feeling stress caused by _____. o physical demands o task demands o exhaustion o resistance o role demands

o role demands

In the reengineering process, the first step involves _____. o setting goals and developing a strategy o emphasizing top management's commitment to reengineering o implementing the chosen strategy across the organization o optimizing top-down and bottom-up perspectives o creating a sense of urgency among managers

o setting goals and developing a strategy

A _____ is privately owned by one individual or a group of individuals and has sales and assets that are not adequate enough to meaningfully influence its environment. o publicly held corporation o regulatory agency o nonprofit organization o strategic business unit o small business

o small business

An organization is said to achieve a perfect person-job fit if it can _____. o meet the person's needs irrespective of his ability to contribute to it o measure the performance dimensions of an employee o create a psychological contract with a prospecting individual o make approximations of employee skill levels and improve them o take advantage of the person's abilities and exactly fulfill his needs

o take advantage of the person's abilities and exactly fulfill his needs

During surgery, surgeons make quick decisions knowing the consequences of a wrong one. They are most likely to feel stress due to _____ demands. o task o physical o role o interpersonal o creative

o task

Watches.com, an online watch store, recently adopted a new enterprise resource planning (ERP) system to help keep track of the company's inventory and to deliver customers' orders on time. The company's adoption of the new ERP system reflects a change in the area of _____. o organization culture o job design o technology and operations o people o departmentalization

o technology and operations

Organizations can benefit from turnovers if _____. o the individuals who quit have to be replaced immediately o they are trying to cut costs o turnovers involve productive people o the current unemployment rates are high o a good person-job fit is the cause for a turnover

o they are trying to cut costs

In human resource management, _____ usually refers to teaching operational or technical employees how to do the job for which they were hired. o job rotation o job specialization o development o training o assessment

o training

Dario wants to start a business in his hometown, but first he wants to research the market and how successful his business might be. The best way for Dario to gain knowledge is to______. o take advice about the market from his friends and relatives o conduct a consumer survey o study the history of successful firms in the field to get an idea of how to go about the business o work for an established firm in this business o start the business on a small scale and test the market, and then expand the business by selling more of the products with greater demand

o work for an established firm in this business

Which unique skill does a product champion usually possess? o Knowing where to secure resources for successful development o Understanding technological aspects of an idea o Managing organizational politics o Creating innovation o The ability to conceive and develop new ideas

Knowing where to secure resources for successful development

As a nurse, Raj works four 10-hour days per week. This allows him to have better control over patient care. What type of scheduling does Raj's hospital use? o Compressed o Flextime o Job sharing o Telecommuting o Rotation

o Compressed

Based on a Supreme Court ruling, it is illegal to make discriminatory action against the LGBTQ community. Which Act did the Supreme Court make this decision based on? o Title VII of the Civil Rights Act of 1964 o Employment-at-Will Act o Americans with Disabilities Act o Labor-Management Relations Act o Fair Labor Standards Act

o Title VII of the Civil Rights Act of 1964