MGMT Exam 2

________ ratios measure how efficiently the firm is using its assets. Liquidity Leverage Profitability Activity

Activity

Manipulation involves the use of direct threats against the resisters. True False

False

Recruitment is defined as the process of screening job applicants to determine who is best qualified for the job. True False

False

The chain of command is a principle that states that a person should report to only one boss. True False

False

________ involves defining the organization's goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities. Execution Logistics Planning Operations

Planning

Which of the following is the last step in goal setting? Review the organization's mission or purpose. Determine the goals individually or with input from others. Write down the goals and communicate them to all who need to know. Review results and whether goals are being met.

Review results and whether goals are being met.

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

Strategic flexibility

________ is the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization. Strategic leadership Scientific management Strategic competence Strategic flexibility

Strategic leadership

Using corporate hotlines or other mechanisms for reporting and investigating workplace violence is an example of feedback control. True False

False

A major structural design challenge for managers today, is to find a way to offer flexibility and at the same time keep widely dispersed and mobile employees connected to the organization. True False

True

The "calm waters" metaphor of change is consistent with Lewin's concept of unfreezing, changing, and refreezing. True False

True

The Sarbanes-Oxley Act also called for more disclosure and transparency of corporate financial information. True False

True

Written essay and critical incident are performance appraisal methods. True False

True

Which of the following is one of the reasons why managers should plan? When work activities are coordinated around plans, inefficiencies become obvious. Uncertainty can be eliminated and the organization can be insulated from change with planning. Planning eliminates the need to set goals. Planning eliminates the need to measure work effort.

When work activities are coordinated around plans, inefficiencies become obvious.

Which of the following provides a framework for understanding diverse businesses and helps managers establish priorities for allocating resources? a differentiation strategy vertical integration a corporate portfolio matrix a strategic business unit

a corporate portfolio matrix

A firm that is "stuck in the middle" cannot develop ________. a cost or differentiation advantage a functional strategy a leadership strategy a flexible strategy

a cost or differentiation advantage

Which of the following is a favorable condition that will facilitate a cultural change? the organization has a huge workforce the organization has a long existence a dramatic crisis occurs a stable leadership exists

a dramatic crisis occurs

Which of the following is an example of a standing plan? a retail chain's plan to counter the entry of a new competitor a plan developed to address a sudden, unanticipated surge in demand a fire escape policy establishing practices to be followed in an emergency a plan to cope with radical changes in the political environment

a fire escape policy establishing practices to be followed in an emergency

Which of the following is an example of a single-use plan? affirmative action hiring policies of a company a plan developed to implement new environmental regulations the procedure to be followed for firing low-performing employees a plan developed to ensure worker safety at the company's facilities

a plan developed to implement new environmental regulations

Structural changes include ________. combining departmental responsibilities changing work processes changing attitudes changing behavior

combining departmental responsibilities

An organization that grows using ________ focuses on its primary line of business and increases the number of products offered or markets served in this primary business. concentration horizontal integration vertical integration diversification

concentration

Organizations grow by using strategies of ________. concentration, integration, or diversification concentration, integration, or stabilization integration, diversification, or differentiation integration, diversification, or functionalization

concentration, integration, or diversification

Top executives are mainly involved in ________ planning. functional operational strategic departmental

strategic

Which 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 profit-orientation of businesses flattened organizational structures stagnant business conditions

environmental uncertainty

The Sarbanes-Oxley Act is an example of which of the following forces of change? need changes technological changes external changes economic changes

external changes

Which of the following is considered the most desirable type of control to prevent anticipated problems? feedforward control concurrent control feedback control reactive control

feedforward control

The most common arrangement in a compressed workweek is ________. four 10-hour days three 12-hour days followed by one 4-hour day five 8-hour days four 9-hour days followed by one 4-hour day

four 10-hour days

Lower-level managers are responsible for ________ strategies. functional stability corporate growth

functional

An organization that is diversifying its product line is exhibiting what type of corporate strategy? turnaround strategy retrenchment strategy growth strategy stability strategy

growth strategy

What are the three main types of corporate strategies? stability, focus, and turnaround growth, stability, and renewal growth, cost leadership, and differentiation stability, differentiation, and focus

growth, stability, and renewal

Clinical psychologists suggest that employee theft ________. occurs primarily when there are poor management-labor relations is a symptom of poor planning and management control happens because people find ways to rationalize this behavior as correct reflects deep cultural problems in the society

happens because people find ways to rationalize this behavior as correct

Most idea champions ________. have extremely high self-confidence are lethargic avoid risks are relenting

have extremely high self-confidence

Which of the following steps in the human resource management process identifies and selects competent employees? orientation and training human resource planning and recruitment compensation and benefits training and performance management

human resource planning and recruitment

When data is analyzed and processed, it becomes ________. a system information fact a structure

information

The third step in strategic management process is related to the analysis of the ________. external environment internal environment threats and opportunities competitive strategy

internal environment

An assessment that defines jobs and the behaviors necessary to perform them is known as a ________. job description job specification job preview job analysis

job analysis

A change capable organization ________. links the present and the future discourages diverse teams discourages mavericks follows its competitor's footsteps

links the present and the future

Recruitment is the process of ________. moving employees laterally to reduce intraorganizational supply-demand imbalances locating, identifying, and attracting capable applicants screening job applicants to determine who is the best reducing the surplus employees from the workforce

locating, identifying, and attracting capable applicants

A(n) ________ organization is highly specialized and rigidly departmentalized. organic fundamental learning mechanistic

mechanistic

Competitive factors or new innovations within an industry often require managers to introduce ________. new technology, tools, or operating methods new technology, tools, or people new technologyt, operating methods, or structure new technology, people, or structure

new technology, people, or structure

A study of the external environment allows a manager to understand the ________ and ________ for the organization. threats; weaknesses strengths; weaknesses strengths; opportunities opportunities; threats

opportunities; threats

The greater the environmental uncertainty, the more an organization needs to become ________. organic mechanistic specialized departmentalized

organic

In an organization, the single independent businesses which formulate their own competitive strategies are known as ________. strategic growth units strategic business units focus units service units

strategic business units

Heavy investment in ________ will help take advantage of the market's growth and help maintain high market share. cash cows stars question marks dogs

stars

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

stated

Collaborative relationships between two or more organizations in which they combine their resources and capabilities for some business purpose are known as ________. communities of practice strategic partnerships ad hoc organizations organizational task forces

strategic partnerships

All work in project structures is performed by ________. teams functions outside specialists informal groups

teams

Managers exclusively play the role of change agents. True False

False

Which of the following reflects the way goals are set in an MBO program? Goals are not used to measure and control employee performance. Goals tend to be broad and directional to encourage interpretation by individual managers. Apart from being used to ensure that employees are doing what they are supposed to be doing, goals are used as a motivating tool for employees. Goals are set by top level managers and lower level employees implement them based upon their interpretation of these goals.

Apart from being used to ensure that employees are doing what they are supposed to be doing, goals are used as a motivating tool for employees.

Computer peripherals provider Ascent plans to enter a new market in another country. Which of the following represents a threat for Ascent? Ascent's profit margin in the previous year was its lowest on record and it will require long-term planning to improve margins. Ascent lacks the resources to enter the market on its own and has to find a partner in the new market. Ascent will have to plan its entry carefully as the laws in the country do not favor foreign businesses. Ascent needs to improve its service capabilities in the new country as this is an important source of revenue.

Ascent will have to plan its entry carefully as the laws in the country do not favor foreign businesses.

________ is the degree to which decision making takes place at upper levels of the organization. Centralization Decentralization Formalization Functionalization

Centralization

________ as a source of recruitment is limited to entry-level positions. The company Web site The Internet College recruiting Professional recruiting organizations

College recruiting

________ refer to groups of people who share a concern, a set of problems, or a passion about a topic, and who deepen their knowledge and expertise in that area by interacting on an ongoing basis. Communities of practice Strategic partnerships Cross-functional communities Task forces

Communities of practice

When formal planning fails to lead to higher performance, which of the following is most likely to be the reason for the failure? A participative style of planning was used. Managers were allowed too much autonomy. The company emphasized the control function over other functions. Constraints of the external environment.

Constraints of the external environment.

________ refers to the process of monitoring, comparing, and correcting work performance. Controlling Leading Planning

Controlling

An organization is in the process of goal setting. It has finished reviewing the organization's mission. What should it do next? Determine the goals individually or with input from others. Write down the goals and communicate them to all who need to know. Evaluate available resources. Review results and whether goals are being met.

Evaluate available resources.

A task force is a permanent committee or team formed to tackle a long-term problem affecting several departments of an organization. True False

False

An organization that wants to have high-performance work practices should discourage self-managed teams and decentralized decision making. True False

False

Benchmarks for a company must be created based on the previous performance of the company. True False

False

Cultural change is easier when the organizational culture is strong. True False

False

Which of the following is a characteristic of a strategic partnership? It allows multiple parties to share the risks and expenses. It can accommodate only a small number of participants. It provides access to new markets and technologies. It prevents rival firms from collaborating.

It allows multiple parties to share the risks and expenses.

How can a cost leader use e-business to reduce costs? It could automate purchasing and payment systems so that customers have detailed status reports. It could provide rapid online responses to service requests. It could use Internet-based knowledge systems to shorten customer response times. It could use Web-based inventory control systems that reduce storage costs.

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

Which of the following is a characteristic of a project structure? It has no formal departments. It creates a high level of team loyalty. It has a rigid organizational hierarchy. It has a very slow decision making process.

It has no formal departments.

Which of the following is a strength of simple structures? Employees are grouped with others who have similar tasks. It focuses on results. It is inexpensive to maintain. It remains appropriate even as the organization changes as it grows.

It is inexpensive to maintain.

Identify the correct statement regarding contingent workers? The more control a company has over a worker the more likely that the individual is a contingent worker rather than an employee. Companies are required to pay Social Security, Medicare, and unemployment insurance taxes on workers classified as contingent workers. Managers should have a method of establishing goals, schedules, and deadlines for the contingent employees. Monitoring the work performance of contingent workers is not mandatory, especially if the contingent employee is working off-site.

Managers should have a method of establishing goals, schedules, and deadlines for the contingent employees.

________ involves distorting facts to make the change appear more attractive. Coercion Education and communication Participation Manipulation and co-optation

Manipulation and co-optation

________ is a type of technology that centers on large-batch production and requires moderate levels of complexity and sophistication. Unit production Mass production Process production Service production

Mass production

________ involves bringing individuals directly affected by the proposed change into the decision-making process. Participation Facilitation and support Negotiation Manipulation and co-optation

Participation

Plaxo Inc., is going through tough times. Latest financial reports indicate that overall profitability of the company is down by 15 percent and they are losing market share. The situation seems quite bleak and it is unlikely that the company's prospects will improve in the near future unless they take some drastic measures. In a board meeting, one of the directors proposes the idea of offering senior employees the option of voluntary retirement. Which of the following, if true, would support this proposal? The company has a last-in-first-out decruitment policy. The younger work force is more efficient while the older workforce is more loyal. The older employees will prefer to voluntarily retire as opposed to being laid-off. The company is committed to maintaining workforce diversity at all costs.

The older employees will prefer to voluntarily retire as opposed to being laid-off.

Which of the following is the first step in MBO? The organization's overall objectives and strategies are formulated. Unit managers collaboratively set specific objectives for their units with their managers. Action plans are specified and agreed upon by managers and employees. Major objectives are allocated among divisional and departmental units.

The organization's overall objectives and strategies are formulated.

How can managers increase the likelihood of making change happen successfully? They should realize that they are just change agents not change leaders. They should discourage entrepreneurial mindsets. They should give individual employees a role in the change process. They should adapt the changes made by their competitors.

They should give individual employees a role in the change process.

Which of the following is one of the problems associated with traditional goal setting? Top level managers tend to define the organization's goals in very narrow terms. Transition of strategic goals into departmental, team, and individual goals is difficult. It can result in the formation of a means-ends chain. Goals set are invariably easily accomplished.

Transition of strategic goals into departmental, team, and individual goals is difficult.

Organizational plans can be classified on the basis of all of the following characteristics, except on the basis of their ________. breadth attainability specificity frequency of use

attainability

In which of the following organizational designs are employees most likely to experience communication difficulties? team structures matrix structures project structures boundaryless structures

boundaryless structures

A ________ describes the rationale of how a company is going to make money. functional strategy business model SWOT analysis core competency

business model

The two metaphors commonly used to describe the two views of the change process are ________. running water and troubled water calm waters and white-water rapids marine water and freshwater muckwater and mudwater

calm waters and white-water rapids

Which of the following is a physical symptom of stress? changes in metabolism changes in productivity job-related dissatisfaction job turnover

changes in metabolism

Which of the following is NOT an external force of change? changing consumer needs new governmental laws economic changes changes in workforce composition

changes in workforce composition

A problem associated with traditional goal setting is that ________. the narrowly defined goals inhibit a manager's ability to interpret them the high degree of reliance on employees for developing goals is not suited to many situations clarity is lost as the goals make their way down from the top of the organization to lower levels it promotes the growth of a flatter organizational structure and threatens organizational efficiency

clarity is lost as the goals make their way down from the top of the organization to lower levels

Which of the following is a characteristic of a mechanistic organization? cross functional teams free flow of information wide spans of control clear chain of command

clear chain of command

What plans are preferable when uncertainty is high in the business environment? standing plans directional plans specific plans informal plans

directional plans

Which of the following traditional organizational designs focuses on results by holding division managers responsible for what happens to their products and services? simple structure functional structure divisional structure matrix structure

divisional structure

If a bank estimates the capabilities of its employees who provide customer service prior to implementing a new training program designed to change their method of providing customer service, it is ________. conducting an external analysis formulating its competitive strategies doing an internal analysis formulating its corporate strategies

doing an internal analysis

Outside consultants are more likely to initiate ________ organizational changes than insiders. drastic mild contented trivial

drastic

Falling interest rates are an example of what external force? change in composition of workforce change in employee attitudes technological change economic change

economic change

The final step in the strategic management process allows an organization to understand the ________. effectiveness of the strategies used implementation of the strategies formulation of the strategies resources and capabilities it possesses

effectiveness of the strategies used

All other things being equal, the wider or larger the span, the more ________ an organization is. ambitious rigid mechanistic efficient

efficient

The control process assumes that ________. employees require clear directions from management employees are under-qualified and require training performance standards are already in place employee monitoring costs are part and parcel of doing business

performance standards are already in place

Which aspect of planning refers to documents that outline how results are to be achieved? goals plans objectives performance

plans

Which of the following ratios measures how efficiently and effectively the firm is using its assets to generate revenue? liquidity ratios leverage ratios activity ratios profitability ratios

profitability ratios

Which is the first step managers should follow in goal setting? evaluating available resources determining goals individually or with input from others writing down goals and communicating them to all who need to know reviewing the organization's mission

reviewing the organization's mission

In providing assistance to employees being downsized, many organizations offer some form of ________. severance pay piece-rate pay overtime pay merit pay

severance pay

Large organizations tend to have more ________ than smaller organizations. specialization departmentalization centralization rules and regulations

specialization

When uncertainty is high, plans should be ________ and ________. specific; flexible directional; standing short-term; directional general; informal

specific; flexible

Which of the following is a competitive force under the five forces model? past rivalry with competitors predictable changes in the market vertical integration threat of substitutes

threat of substitutes

Long-term plans are defined as those with a time frame beyond ________. seven years one year five years three years

three years

According to Kurt Lewin, increasing the driving forces is a means of ________. unfreezing changing restraining refreezing

unfreezing

Managers do an external analysis so that they know about ________. the firm's basic beliefs and ethical priorities what the competition is doing resources the firm does not possess their organization's core competencies

what the competition is doing

The two types of orientations are ________. job orientation and procedural orientation work unit orientation and organization orientation work unit orientation and group orientation organization orientation and group orientation

work unit orientation and organization orientation

Increasing the numbers of employed women and minorities forces managers to pay attention to what change factor? strategy workforce equipment technology

workforce