mgmt300

3. Organizational structure includes which of these? a. The set of formal tasks assigned to individuals b. The set of formal tasks assigned to departments c. The design of systems to ensure effective coordination of employees across departments d. Formal reporting relationships e. All of these are part of organizational structure.

ANSWER: e

50. Which of these is sometimes called negative reinforcement? a. Avoidance learning b. Punishment c. Positive reinforcement d. Extinction e. Neutral learning

a. Avoidance learning

69. Which is an advantage of the divisional structure? a. Concern for customers' needs is high. b. There is little duplication of services across divisions. c. There is good coordination across divisions. d. Top management retains tight control of the organization. e. There is no competition for corporate resources.

a. Concern for customers' needs is high.

The human resource department at Paula's Powerwheels is implementing a number of functional level strategies. These strategies include focusing on ways to retain and develop a stable work force and ways to improve efficiency in the organization. These functional-level strategies are consistent with which of the following strategies?

a. Cost leadership

68. _____ is an important part of the job characteristics model. a. Critical psychological states b. A hierarchy of needs c. Schedules of reinforcement d. All of these e. None of these

a. Critical psychological states

46. Which of the following is considered a leverage ratio? a. Debt ratio b. Return on total assets c. Profit margin on sales d. Conversion ratio e. Inventory turnover

a. Debt ratio

36. Which of the following is the basis for grouping positions into departments and departments into the total organization? a. Departmentalization b. Centralization c. Decentralization d. Formalization e. Specialization

a. Departmentalization

10. _____ is also referred to as work specialization. a. Division of labor b. Unity of command c. Scalar chain d. Esprit de corps e. Virtual network approach

a. Division of labor

29. Ron meets with his company's accountant to discuss the budget of anticipated and actual expenses for each segment of the organization. This involves review of which type of budget? a. Expense budget b. Revenue budget c. Cash budget d. Capital budget e. Nonfinancial budget

a. Expense budget

56. One of your fellow team members at work is continually disrupting the team's work with jokes and general horseplay. You hope that by ignoring him he will stop this senseless behavior. You are attempting to use which reinforcement tool? a. Extinction b. Positive reinforcement c. Negative reinforcement d. Avoidance learning e. Desired behavior is reinforced annually

a. Extinction

75. _____ is the extent to which doing the job provides information back to the employee about his or her performance. a. Feedback b. Assessment c. Evaluation d. Satisfaction e. Fulfillment

a. Feedback

71. _____ standards represent an international standard for quality management. a. ISO 9000 b. Six Sigma c. TQM d. Kiazan e. Foreign Economy Index

a. ISO 9000

60. Which of the following is the application of motivational theories to the structure of work for improving productivity and satisfaction? a. Job design b. Job enlargement c. Job simplification d. Job characteristics e. Job enrichment

a. Job design

Persuasion, motivation, and changes in cultures and values are examples of which of the dimensions used to implement strategy?

a. Leadership

22. Which department performs tasks that reflect the organization's primary goals and mission? a. Line b. Staff c. Primary d. Functional e. Strategic planning

a. Line

Sherri has been asked to participate on a cross-functional task force that is charged with performing an audit checklist for her advertising firm. The task force will analyze organizational strengths and weaknesses as they apply to the firm. Sherri's task is to analyze management quality, staff quality, degree of centralization, and organizational charts. This level of analysis pertains to which area of the audit?

a. Management and organization

31. Which financial control system measures the stock market's estimate of the value of a company's past and projected capital investment projects? a. Market value-added b. Economic value-added c. System governance d. Activity-based costing e. Corporate governance

a. Market value-added

5. Zachary, a manager at ExecuComp, receives quarterly reports, which track his department's production statistics. However, these reports lack key information regarding reject rates. Which of the following components of the control model need improvement? a. Measuring actual performance b. The planning and setting of performance standards c. SWOT analysis d. The ability to take corrective action when necessary e. All of these

a. Measuring actual performance

51. Which of the following allows employees to see for themselves the financial condition of the company? a. Open-book management b. An economic value-added system c. Activity-based costing d. An inappropriate control system e. Market value-added system

a. Open-book management

43. Which of the following theories concern the thought processes that influence behavior? a. Process b. Reinforcement c. Content d. Needs e. Maslow's

a. Process

82. Which of the following leads to strong coordination across functional areas and greater flexibility in responding to changes in the environments? a. Reengineering b. Layoffs c. Downsizing d. A temporary committee e. An ad hoc committee

a. Reengineering

6. Which of the following theories focuses on employee learning of desired work behaviors? a. Reinforcement theory b. ERG theory c. Hierarchy of needs theory d. Experiential learning theory e. Content theory

a. Reinforcement theory

Semway, a regional bank, recently announced that it would soon begin offering financial planning services. This is an example of which of these?

a. Related diversification

15. _____ refers to a clearly defined line of authority in the organization that includes all employees. a. Scalar principle b. Unity of command c. Work specialization d. Division of labor e. Span of management

a. Scalar principle

80. On the continuum of empowerment, what is the highest level of empowerment that requires the most complex skills? a. Self-management b. Suggestion programs c. Participation groups d. Cross-functional teams e. Periodic briefings

a. Self-management

3. For control, this type of measure is an important part of achieving higher performance. a. Statistical b. Theoritical c. Emotional d. Employee conflict e. Market

a. Statistical

Which of the following refers to the planning and decision making that lead to the establishment of the organization's goals and of a specific strategic plan?

a. Strategy formulation

17. How does managerial authority flow through the organizational hierarchy? a. Vertically b. Sporadically c. Horizontally d. In a circular fashion e. Authority is static - it does not flow

a. Vertically

58. _____ occurs when an individual sees others perform certain behaviors and get rewarded for them. a. Vicarious learning b. Self-efficacy c. Self-reinforcement d. Delegation e. Experiential learning

a. Vicarious learning

33. Barney and Betty work at Mountain Peak, Inc. Although they both work on the assembly line, they have the authority to make many decisions about their job. Mountain Peak can be said to have: a. a high degree of decentralization. b. a wide span of management. c. a high degree of centralization. d. a narrow span of management. e. no management.

a. a high degree of decentralization.

24. The desire to form close personal relationships, avoid conflict, and establish warm friendships, describes: a. a need for affiliation. b. a need for power. c. a need for achievement. d. a need for authority. e. all of these.

a. a need for affiliation.

39. The conversion ratio is considered to be a(n) _____ ratio. a. activity b. liquidity c. profitability d. leverage e. cash

a. activity

49. The removal of an unpleasant consequence following a desired behavior is referred to as: a. avoidance learning. b. punishment. c. positive reinforcement. d. extinction. e. inefficient management.

a. avoidance learning.

28. The _____ plans future investments in major assets to be depreciated over several years. a. capital budget b. balance sheet budget c. cash budget d. revenue budget e. profit budget

a. capital budget

10. All of the following are major perspectives of the Balanced Scorecard EXCEPT _____. a. competitors b. customers c. learning and growth d. financial e. internal business processes

a. competitors

76. Innovative Creations Corporation is designed along functional lines. New product development is very slow and the process is plagued by many problems. One of the problems is that the people in marketing never communicate with the people in production. This is an example of poor _____. a. coordination b. planning c. motivating d. leading e. controlling

a. coordination

When Philip-Morris, the tobacco giant, bought Kraft, Inc., it was pursuing a _____.

a. corporate-level strategy

Sears' decision to sell off much of its financial services division is an example of a:

a. corporate-level strategy.

The _____ strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be more efficient than competitors.

a. cost leadership

93. With a(n) _____ strategy, the organization attempts to develop innovative products unique to the market. a. differentiation b. integration c. reengineering d. cost leadership e. defensive

a. differentiation

All of the following are Porter's competitive forces except:

a. differentiation.

102. Organizations such as Amazon.com, Google, Facebook, and Priceline.com are examples of firms that are based on: a. digital technology. b. tangible output. c. direct contact with customers. d. mechanistic technology. e. products rather than services.

a. digital technology.

42. Self-contained unit structure is a term used for: a. divisional structure. b. functional structure. c. term structure. d. matrix structure. e. virtual network structure.

a. divisional structure.

3. A(n)_____ is an example of an intrinsic reward. a. employee's feelings of self-worth b. pat on the back from your boss c. pay raise d. promotion e. bonus

a. employee's feelings of self-worth

8. When work specialization is extensive: a. employees perform a single task. b. employees perform many tasks. c. employees are often highly challenged. d. employees are often inefficient. e. jobs tend to be large.

a. employees perform a single task.

43. Relative to the functional structure, the divisional structure: a. encourages decentralization. b. has a higher degree of work specialization. c. has a more pronounced division of labor. d. has excellent coordination across departments. e. results in an efficient use of resources.

a. encourages decentralization.

4. Katie dislikes almost everything about her job. The only reason she continues to work at Mace Autobody is the excellent benefits package she receives. Katie is motivated by: a. extrinsic rewards. b. intrinsic rewards. c. variable rewards. d. all of these. e. none of these.

a. extrinsic rewards.

62. The biggest advantage to a virtual network approach is _____ and _____ on a global scale. a. flexibility; competitiveness b. coordination; organization c. communication; organization d. communication; no cost e. flexibility; coordination

a. flexibility; competitiveness

Mingles, Inc. concentrates its efforts on its target market of 18 to 25 year olds. It is using a(n) _____ strategy.

a. focus

The assumption that a single global market exists would lead to a:

a. globalization strategy.

45. In goal-setting theory, _____ refers to the degree to which goals are concrete and unambiguous. a. goal specificity b. goal difficulty c. goal acceptance d. feedback e. goal motivation

a. goal specificity

84. Makai's Marketing Mix (MMM) does not use its resources wisely. The employees at MMM spend too much time in meetings and not enough time focusing on the task at hand. MMM's management should consider changing the organizational structure from _____ to _____. a. horizontal, vertical b. team based, horizontal c. vertical, team based d. mechanistic, rigid e. team-based, virtual network

a. horizontal, vertical

The star has a:

a. large market share in a rapidly growing industry.

47. A formal chain of command for both functional and divisional relationships is provided by the _____ approach to structure. a. matrix b. vertical functional c. divisional d. product e. team-based

a. matrix

54. The _____ is the product or functional boss, who is responsible for one side of the matrix. a. matrix boss b. production supervisor c. department boss d. top leader e. two-boss employee

a. matrix boss

26. Denise has a desire to influence others, be responsible for them, and have authority over them. It can be described as her: a. need for power. b. need for achievement. c. need for affiliation. d. need for relatedness. e. none of these.

a. need for power.

2. Ophelia, the new CEO at Odyssey Inc., plans to implement a highly effective systematic process of regulating organizational activities to make them consistent with the expectations that are established by managers within the company. This is referred to as _____ control. a. organizational b. feedback c. budgetary d. systems e. quality

a. organizational

25. A high need for _____ is associated with successful attainment of top levels in the organizational hierarchy, according to McClelland. a. power b. achievement c. affiliation d. success e. expertise

a. power

64. An advantage of functional structures is the: a. resulting economies of scale. b. enlarged tasks for employees. c. easy pinpointing of responsibility for product problems. d. development of general management skills. e. flexibility in an unstable environment.

a. resulting economies of scale.

15. According to Maslow, the highest order needs are: a. self-actualization needs. b. physiological needs. c. esteem needs. d. belongingness needs. e. safety needs.

a. self-actualization needs.

When properly managed, _____ can create additional value with existing resources, providing a big boost to the bottom line.

a. synergy

73. Contingency factors that can influence the success of a TQM program in a negative way include all of the following EXCEPT: a. tasks make high skill demands on employees. b. management expectations are unrealistically high. c. middle managers are dissatisfied about loss of authority. d. workers are dissatisfied with other aspects of organizational life. e. managers wait for big, dramatic innovations.

a. tasks make high skill demands on employees.

61. Quality circles are based on the assumption(s) that: a. the people who do the job know it better than anyone else. b. quality can be increased by increasing the size of the organization. c. quality can be increased by talking more about it. d. the more employees talk, the more satisfied they will be. e. all of these.

a. the people who do the job know it better than anyone else.

91. Mondavi Corporation has a finance department, a marketing department, and a production department. Mondavi: a. uses a functional structure. b. has a geographic structure. c. uses a divisional structure. d. uses product-based structure. e. uses a matrix structure.

a. uses a functional structure.

59. At Rightway Industries, new hires spend a significant portion of their first week of training just walking around the factory, observing other workers and watching them get rewarded for doing their jobs well. This is an example of: a. vicarious learning. b. self-efficacy. c. self-reinforcement. d. delegation. e. experiential learning.

a. vicarious learning.

59. In the _____ structure, the organization is viewed as a central hub surrounded by a network of outside specialists which are sometimes spread all over the world. a. virtual network b. matrix c. functional d. divisional e. geographic

a. virtual network

A corporate-level strategy is concerned with the question:

a. what business are we in?

58. A quality circle is a group of _____ volunteer employees. a. 2 to 4 b. 6 to 12 c. 10 to 20 d. 15 to 25 e. 30 to 50

b. 6 to 12

40. Which of the following is a ratio that measures the firm's internal performance with respect to key activities defined by management? a. A liquidity ratio b. An activity ratio c. Return on total assets d. A current ratio e. Profit margin on sales

b. An activity ratio

9. _____ indicators focus on production and operating statistics. a. Financial performance b. Business process c. Critical success d. Potential for learning and growth e. Performance measurement

b. Business process

11. Which of the following is NOT a need proposed by Maslow in his hierarchy of needs theory? a. Safety needs b. Compensation needs c. Physiological needs d. Esteem needs e. Self-actualization needs

b. Compensation needs

75. Which of the following refers to the system of governing an organization so that the interests of corporate owners are protected? a. Quality circle b. Corporate governance c. ISO certification d. Open-book management e. Balance scorecard

b. Corporate governance

67. _____ refers to the steps taken to complete a company process. a. Continuous improvement b. Cycle time c. Quality circles d. Six sigma e. Benchmarking

b. Cycle time

Which of the following strategies involve an attempt to distinguish the firm's products or services from others in the industry?

b. Differentiation

Q5. Which of the following statements concerning the BCG matrix are incorrect? a. Funding priority needs of SBUs and potential sources of funding are identified. b. Differentiation and Cost Leadership strategies are evaluated.* c. Product cycles of SBUs are important factors d. Business growth rate and market share are important dimensions. e. It is particularly useful for middle managers when conducting an analysis of the product lines to carry and the number of functional departments to support the production of these products. *

b. Differentiation and Cost Leadership strategies are evaluated.*

59. Which of the following is NOT one of the tools used for putting strategy into action?

b. Diversification

39. The _____ involves whether putting effort into a task will lead to high performance. a. P -> O expectancy b. E -> P expectancy c. O -> V expectancy d. A -> Z expectancy e. V -> P expectancy

b. E -> P expectancy

6. Which of the following is a control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible assets? a. Open-book management b. Economic value-added system c. Activity-based costing d. Inappropriate control system e. None of these

b. Economic value-added system

83. _____ is a situation in which employees enjoy their work, contribute enthusiastically to meeting goals, and feel a sense of belonging and commitment to the organization. a. Commitment b. Engagement c. Employee loyalty d. Employee assurance e. Employee guarantee

b. Engagement

31. Which of the following is an example of a process theory of motivation? a. Need hierarchy theory b. Equity theory c. Two-factor theory d. ERG theory e. Acquired needs theory

b. Equity theory

18. What is the first step in the feedback control system? a. Establishing strategic objectives b. Establishing standards of performance c. Taking corrective action d. Comparing performance to standard e. Measuring previous performance

b. Establishing standards of performance

35. Which of the following is based on the relationships between effort, performance, and outcomes? a. Equity theory b. Expectancy theory c. Reinforcement theory d. Two-factor theory e. ERG theory

b. Expectancy theory

28. Which term, in goal-setting theory, refers to the need to make goals highly ambitious but achievable? a. Goal specificity b. Goal difficulty c. Goal acceptance d. Feedback e. Goal motivation

b. Goal difficulty

20. Highroller Casinos provides good salaries and benefits, including bonuses of up to 25 percent of annual salaries. However, the company has been criticized for not establishing an achievement or recognition program for its employees. Which of the following best describes the company in terms of the two-factor theory? a. Good motivators and inadequate hygiene factors b. Good hygiene factors and inadequate motivators c. Good hygiene factors and motivators d. Inadequate hygiene factors and motivators e. None of the above

b. Good hygiene factors and inadequate motivators

27. Alden is a recent college graduate. He is unsure about his future. A counselor in his university's career resources office recently told Alden that he had a high need for achievement. Based on this, what type of career should Alden pursue? a. He should look for work as a project manager. b. He should think about starting his own business. c. He should look for work in "corporate America," he is sure to climb to the top. d. He should play the Lotto. e. None of these.

b. He should think about starting his own business.

48. At LBK Industries, responsibility for quality control rests with a team of quality control inspectors and supervisors rather than with employees. LBK uses what type of organizational control? a. Matrix control b. Hierarchical control c. Decentralized control d. Bottom-up control e. Balanced control

b. Hierarchical control

36. _____ provide the basic information used for financial control of an organization. a. Owners equity b. Income statements c. Financial position d. Mission Statements e. 100-K's

b. Income statements

23. The majority of hourly workers at Formatting Unlimited are neither satisfied nor dissatisfied. What would Herzberg recommend if your goal were to increase their level of satisfaction? a. Increase the level of hygiene factors b. Increase the level of motivators c. Decrease the level of motivators d. Decrease the level of hygiene factors e. None of these

b. Increase the level of motivators

65. Which of the following combines a series of tasks into one new, broader job? a. Job simplification b. Job enlargement c. Job rotation d. Job characteristics e. Job lay-off

b. Job enlargement

67. Karen is a first line supervisor at Wolfs, Inc. She wishes to increase her employee's opportunities for growth and learning. Which of the following techniques should she use? a. Job enlargement b. Job enrichment c. Job rotation d. Positive reinforcement e. Continuous

b. Job enrichment

63. _____ systematically moves employees from one job to another, thereby increasing the number of different tasks an employee performs without increasing the complexity of any one job. a. Job simplification b. Job rotation c. Job enlargement d. Job enrichment e. None of these

b. Job rotation

15. Focusing on how well resources and human capital are being managed for the company's future by showing an improvement trend over periods of time refers to which component of the balanced scorecard? a. Customers b. Learning and growth c. Financials d. Internal business processes e. External business processes

b. Learning and growth

44. Which of the following refers to funding activities with borrowed money? a. ROA b. Leverage c. Liquidity d. Profitability e. Activity

b. Leverage

79. Ricky is a manager at InfoServices, where she rewards the top sales employee every month by giving him or her a high-definition TV or PC. This is an example of what employee motivation program? a. Pay for performance b. Lifestyle award c. Employee stock ownership plan d. Flexible work schedule e. Team-based compensation

b. Lifestyle award

101. Swift Move Facilities manufacturers two different bicycle models. The company produces a high volume of products using standardized production runs. The company does very little product customization. Swift Move uses what type of technology structure? a. Service production b. Mass production c. Large-batch production d. Small-batch production e. Continuous process production

b. Mass production

1. Which of the following is the arousal, direction, and persistence of behavior? a. Commitment b. Motivation c. Satisfaction d. Rewarding behavior e. Behavior modification

b. Motivation

29. Which of the following organizations have a flat structure compared to others? a. Organization A with eleven hierarchical levels b. Organization B with three hierarchical levels c. Organization C with eight hierarchical levels d. Organization D with six hierarchical levels e. Organization E with seven hierarchical levels

b. Organization B with three hierarchical levels

1. Which of the following is the systematic process through which managers regulate organizational activities? a. Strategic planning b. Organizational control c. Organizational goal setting d. Strategic regulation e. Organizational leading

b. Organizational control

16. Use of the balanced scorecard can hinder or decrease organizational performance if it is implemented using which type of orientation? a. Performance management orientation b. Performance measurement orientation c. Customer orientation d. Learning and growth orientation e. Internal business process orientation

b. Performance measurement orientation

55. _____ teams are brought together as a formal department in the organization. a. Cross-functional b. Permanent c. Formal d. Ad-hoc e. Task

b. Permanent

13. _____ describe the most basic human physical needs, including food, water and oxygen. a. Self-actualization needs b. Physiological needs c. Esteem needs d. Belongingness needs e. Safety needs

b. Physiological needs

51. _____ is the imposition of unpleasant outcomes on an employee. a. Avoidance learning b. Punishment c. Positive reinforcement d. Extinction e. Avoiding punishment

b. Punishment

53. One of your fellow students is continually late to class. The professor has tried numerous verbal warnings and recently took points away from the student's grade. Based on the above, the professor's actions are consistent with which of the following reinforcement techniques? a. Negative reinforcement b. Punishment c. Positive reinforcement d. Avoidance learning e. Rewards enhancement

b. Punishment

23. _____ is any organizational department or unit under the supervision of a single person who is responsible for its activity. a. Independent center b. Responsibility center c. Analysis center d. Control center e. Budgeting center

b. Responsibility center

73. _____ is an individual's belief about his or her abilities to successfully accomplish a specific task or outcome. a. Self-control b. Self-efficacy c. Self-reinforcement d. Autonomy e. Delegation

b. Self-efficacy

65. Which quality control technique uses a five-step methodology to define, measure, analyze, improve, and control processes, otherwise referred to as DMAIC? a. Quality circles b. Six Sigma c. Benchmarking d. Balanced scorecard e. Continuous improvement

b. Six Sigma

74. Daisy tried to apply the job characteristics model to her workforce, but it only worked for some of her employees. Which of the following may be a reason why it did not work for everyone? a. Some of her employees are lazy. b. Some of her employees are low in growth-need strength. c. Some of her employees have a low need for power. d. All of her employees have high growth-needs. e. Some of her employees have low affiliation needs.

b. Some of her employees are low in growth-need strength

23. _____ departments include all of those that provide specialized skills in support of _____ departments. a. Line; staff b. Staff; line c. Primary; functional d. Functional; primary e. Line; functional

b. Staff; line

Q6. which of the following statements concerning the 5-forces affecting Industry Competition are incorrect? a. Southern California had a long recession in the early 90s because aerospace companies were dependent on a single customer or buyer- the U.S. Defense Department. b. Stars and Question Marks require considerable funding to make them into Cash Cows.* c. Oil prices often tend to go up because of the strong bargaining power of OPEC supplier nations. d. Barrier to entry is connected with power of the supplier.* e. The numerous automobile companies competing in the U.S. can be said to have an oligopoly type of rivalry

b. Stars and Question Marks require considerable funding to make them into Cash Cows.*

19. Which of the following characteristics distinguishes authority? a. It is vested in people, not positions. b. Subordinates accept it. c. It flows across the horizontal hierarchy. d. It emerges from the organizational values. e. Individuals are born with this power.

b. Subordinates accept it.

70. Which of the following refers to the degree to which an employee performs a total job with a recognizable beginning and ending? a. Task complexity b. Task identity c. Task significance d. Task structure e. None of these

b. Task identity

Q4. Which of the following strategies employed by companies when going global are incorrect? a. Trans-national strategy takes advantage of product integration and standardization while at the same time is responsive to each country' culture and market needs. b. The "think-global, act local" strategy is a phrase often used to describe the Multi-domestic strategy.* c. The Export strategy is domestically focused and exports a few domestically produced products to selected countries. d. Globalization strategy tends to focus only on integration and standardization by applying uniform platforms in design, process, and products. It is often referred to the "think-local, act-local" strategy. * e. Multi-domestic strategy tends to focus on being responsive to individual nation's cultural and market needs. It is also referred to as the "think-global, act-global" strategy.*

b. The "think-global, act local" strategy is a phrase often used to describe the Multi-domestic strategy.*

Q1. Which of the following statements are incorrect? a. The liquidity ratio indicates the organization's ability to meet its current debt obligations. b. The activity ratio of inventory turnover measures total sales divided by average inventory. Therefore companies should aim for a lower inventory turnover every quarter.* c. Wal-Mart and Costco (applying cost-leadership strategies) tend to have lower profit margins of 3-5% per year, whereas Apple and Google (applying differentiation strategies) tend to have higher profit margins of 20-30% or more. d. Debt ratio is a measure of the amount of liabilities divided by total assets. e. Financial performance indicators such as profit margins, sales, cost of goods sold, and inventory are found in the firm's balance sheet.*

b. The activity ratio of inventory turnover measures total sales divided by average inventory. Therefore companies should aim for a lower inventory turnover every quarter.*

25. Which of the following refers to the number of employees reporting to a supervisor? a. The line of authority b. The span of management c. The chain of command d. The management chain e. Delegation

b. The span of management

56. Which of the following is a philosophy of organization-wide commitment to continuous improvement, focusing on teamwork, customer satisfaction, and lowering costs? a. Engineering b. Total quality management c. Outsourcing d. Culture e. Diversity

b. Total quality management

13. _____ means that each employee is held accountable to only one supervisor. a. Scalar principle b. Unity of command c. Work specialization d. Division of labor e. Span of management

b. Unity of command

51. The matrix structure violates which of the following principles of management? a. Unity of direction b. Unity of command c. Work specialization d. Division of labor e. Span of management

b. Unity of command

When an organization expands into a totally new line of business, it is implementing a strategy of:

b. Unrelated diversification

42. Which of the following describes the value or attraction an individual has for an outcome? a. Motivators b. Valence c. O -> V expectancy d. P -> O expectancy e. E -> V expectancy

b. Valence

_____ can be defined as the combination of benefits received and costs paid by the customer.

b. Value

65. Which of the following structures is the leanest of all organization forms because little supervision is required? a. Functional approach b. Virtual network approach c. Team approach d. Matrix approach e. Divisional approach

b. Virtual network approach

Q7. Which of the following statements concerning Porter's Competitive Strategies are incorrect? a. Nordstrom Stores adopts a differentiation strategy. b. Wal-Mart Stores adopts a cost leadership strategy whereas Sam's Club adopts a differentiation strategy.* c. Jet Blue Airlines can be said to adopt a cost leadership strategy because of its aggressive pricing. d. The number of possible ways companies differentiate their products services can be said to be unlimited. e. When starting up a restaurant in a Hispanic neighborhood serving only Hispanic food, the company is adopting a focus strategy. Therefore, it is not possible for the company to also apply simultaneously the differentiation strategy.*

b. Wal-Mart Stores adopts a cost leadership strategy whereas Sam's Club adopts a differentiation strategy.*

Janessa is the CEO of a privately-held software company. In defining corporate-level strategies, which of the following questions would she most likely be concerned with?

b. What business are we in?

60. Heather belongs to an informal group at work that meets twice a month to discuss common issues and problems in the workplace. Recently, this group has been focusing on ways to improve safety in the workplace. This group is an example of: a. a safety group. b. a quality circle. c. an ad-hoc committee. d. a problem team. e. none of these.

b. a quality circle.

Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified as:

b. a star.

66. Shooting Star, Inc. has slow response to external changes, centralized decision making, and poor coordination across departments. It is likely structured: a. along divisional lines. b. along functional lines. c. based on the team approach. d. based on the virtual network approach. e. none of these.

b. along functional lines.

Ford's decision to completely redesign its Ford Taurus can be classified as a:

b. business level strategy.

27. Madison has been assigned to work on the development of a budget that plans future investments in major assets such as buildings and heavy machinery. Madison is working on a(n) _____ budget. a. cash b. capital c. revenue d. operating e. expense

b. capital

68. It seems that once a year the managers of Stone Construction, Inc. attempt a major organization intervention, such as management-by-objectives. They never seem to be satisfied with the performance of Stone Construction and, sure enough, 12 months later, along comes another major intervention. By implementing organizational change in this way, Stone Construction's management may well be violating the principle of: a. benchmarking. b. continuous improvement. c. unity of direction. d. top-down control. e. none of these.

b. continuous improvement.

35. Change and uncertainty in the environment are usually associated with _____. a. work specialization b. decentralization c. centralization d. tight vertical control e. division of labor

b. decentralization

39. The use of teams may lead to too much: a. division of labor. b. decentralization. c. authority and responsibility in top management's hands. d. formalization. e. narrow span of management.

b. decentralization.

52. The control "system" at FreshFood Corporation is based on the culture of the organization and norms that develop in the individual work teams. This is an example of: a. bureaucratic control. b. decentralized control. c. organizational control. d. feedback control. e. none of these.

b. decentralized control.

27. Shoshanna is manager of a customer service firm where she oversees five subordinates. To help her subordinates learn more about the different roles within the company, Shoshanna regularly assigns them tasks that are not part of their normal routine. This is an example of: a. responsibility b. delegation c. authority d. chain of command e. irrational decision making

b. delegation

The purpose of _____ is to expand the firm's business operations to produce new kinds of valuable products and services?

b. diversification

72. Stephanie works in one of seven research and development departments at Tara's Terrace, Inc. This would suggest that Tara's Terrace has a: a. functional structure. b. divisional structure. c. wide span of control. d. high degree of centralization. e. matrix structure.

b. divisional structure.

38. The functional, _____, and _____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy. a. divisional, teams b. divisional, matrix c. matrix, teams d. matrix, networks e. teams, networks

b. divisional, matrix

9. Louise works in the manufacturing department at Ice Sculptures. The work in Louise's department is low in task specialization. As a result, Louise: a. usually performs a single task. b. does a variety of tasks and activities. c. is often bored. d. is rarely challenged. e. generally goofs-off.

b. does a variety of tasks and activities.

38. A recent study from the U.S. Department of Labor shows that the top reason that people leave their jobs is because they: a. don't make enough money. b. don't feel appreciated. c. don't believe in what the organization stands for. d. don't like their colleagues. e. don't like their boss.

b. don't feel appreciated.

63. All of the following are advantages of a functional structure EXCEPT: a. economies of scale. b. excellent coordination between functions. c. in-depth skill specialization and development. d. high quality technical problem solving. e. career progress within functional departments.

b. excellent coordination between functions.

16. Alderfer referred to the needs for physical well being as _____ needs. a. physiological b. existence c. belongingness d. relatedness e. growth

b. existence

19. CyberChasers Corporation sends a post-purchase questionnaire to all consumers who buy their products. They are interested in gathering data on product quality, customer service orientation, and customer satisfaction. This is an example of a: a. concurrent control. b. feedback control. c. feedforward control. d. preliminary control. e. preventive control.

b. feedback control.

4. Organization structure is defined as the: a. visual representation of the organization. b. framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated. c. division of labor. d. unbroken line of authority that links all individuals in the organization. e. none of these.

b. framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated.

42. Tammy is a production manager at Eagle's Nest, Inc.. She is concerned that too much money is being wasted on inventory that is sitting in the warehouse too long. She should calculate a(n): a. current ratio. b. inventory turnover ratio. c. conversion ratio. d. profitability ratio. e. leverage ratio.

b. inventory turnover ratio.

38. The _____ ratio refers to the ability of the organization to meet its current debt obligation. a. activity b. liquidity c. profitability d. conversion e. growth

b. liquidity

34. An advantage of the bottom-up budgeting process is: a. its emphasis on bureaucratic control. b. lower managers are more involved. c. top managers control the information flow. d. top managers are often not committed to achieving budget targets. e. all of these.

b. lower managers are more involved.

61. In the _____ approach, a manufacturing company uses outside suppliers to provide entire chunks of a product, which are then assembled into a final product by a handful of workers. a. virtual network b. modular c. virtual organization d. team e. matrix

b. modular

How business units and product lines fit together in a logical way is the essence of:

b. portfolio strategy.

Gillette operates numerous strategic business units. Most of its units in the personal care division have low market share but high business growth. These units are classified as _____.

b. question marks

85. Flash Card Inc. recently underwent a significant company-wide change that involved revision of its manufacturing and leadership processes. The result of this was a stronger emphasis on horizontal coordination. This level of change is referred to as _____. a. reorganization b. reengineering c. e-engineering d. strategic planning e. corporate structuring

b. reengineering

Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred will:

b. search for the strengths, weaknesses, opportunities, and threats that impact his firm.

The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as:

b. synergy.

88. Typically, project managers have authority over _____ but not over _____ assigned to it. a. people; the project b. the project; people c. resources; the project d. people; other resources e. finances; products

b. the project; people

75. Coordination is defined as: a. the ability of the organization to produce timely products. b. the quality of collaboration across departments. c. differentiation. d. the quantity of goods produced by the organization. e. all of these.

b. the quality of collaboration across departments.

98. A(n) _____ works best in a stable organizational environment. a. loose organizational structure b. vertical structure c. organic structure d. horizontal structure e. loose organizational structure or an organic structure

b. vertical structure

44. Theresa works in an organization where coordination across organizational units is poor and the units perceived themselves to be in competition with one another for organizational resources. These characteristics are consistent with which of the following structures? a. A matrix structure b. A functional structure c. A divisional structure d. A team-based structure e. A virtual network structure

c. A divisional structure

97. Which of the following structures works best in an uncertain organizational environment? a. A tight structure b. A mechanistic structure c. A horizontal structure d. A functional structure e. A vertical structure

c. A horizontal structure

45. _____ is a control system that identifies the various activities needed to produce a product and determines the cost of those activities. a. Open-book management b. An economic value-added system c. Activity-based costing d. An inappropriate control system e. None of these

c. Activity-based costing

62. What is the key to successful benchmarking? a. Application b. Implementation c. Analysis d. Strategy e. Planning

c. Analysis

Which of the following is NOT one of Porter's competitive forces?

c. Bargaining power of stockholders

Q3. Potential for new entrants is connected with: a. Rivalry among competitors b. Threat of substitute products c. Barriers to entry into market* d. New entrants becoming new competitors.* e. Bargaining power of customers and suppliers

c. Barriers to entry into market*

83. Boars' Nest Distributors is continually hampered by an inability to adapt to an unstable environment. Which of the following is a plausible explanation as to why? a. Boars' Nest's structure is too loose. b. Boars' Nest's structure is too horizontal. c. Boars' Nest uses a vertical structure. d. All of these. e. Both Boars' Nest's structure is too loose and structure is too horizontal.

c. Boars' Nest uses a vertical structure.

24. _____ control is the process of setting targets for an organizations expenditures. a. Quality b. Income c. Budgetary d. Systems e. Supply chain

c. Budgetary

The BCG matrix organizes along which of the following dimensions?

c. Business growth rate and market share

26. Which of these is a financial budget that estimates cash flows on a daily basis or weekly basis to ensure that the company can meet its obligations? a. Capital expenditure budget b. Balance sheet budget c. Cash budget d. Revenue budget e. Profit budget

c. Cash budget

34. _____ means that decision authority is located near the _____ of the organization. a. Centralization; bottom b. Decentralization; top c. Centralization; top d. Centralization; middle e. None of these

c. Centralization; top

37. Yolanda recently learned that Sue, who works in the same position as she and has been with the company for the same amount of time, earns about ten percent more than she does. As a result, Yolanda feels that she should not work as hard, so she starts coming in late and taking more days off. This is an example of which method for reducing perceived equity? a. Working harder, not smarter b. Changing outcomes c. Changing work effort d. Changing perceptions e. Leaving the job

c. Changing work effort

8. Which of the following theories emphasize the needs that motivate people? a. Process b. Reinforcement c. Content d. Contingency e. Situational

c. Content

Which of the following pertains to the organization as a whole?

c. Corporate-level strategy

50. At RWI Distilleries, rules and procedures are used only when necessary. Instead, shared goals and values guide employee behavior. RWI uses what type of organizational control? a. Centralized control b. Hierarchical control c. Decentralized control d. Top-down control e. Balanced control

c. Decentralized control

20. Kendra is a manager at George's Goodies. On a regular basis Kendra and her subordinates set individual and organizational goals. This process is similar to which component of the control model? a. Taking corrective action when necessary b. An information system c. Establishing performance standards d. Engaging strategic analysis e. None of these

c. Establishing performance standards

Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is low?

c. Export

General Products Inc. is a small clothing designer and manufacturer located in the United States. A vast majority of the company's revenues comes from U.S. sales, although about ten percent of the company's revenue come from sales to Canada. General Products Inc. can best be described as using which global corporate strategy?

c. Export strategy

52. Which of the following techniques reduces the likelihood that behavior will be repeated? a. Positive reinforcement b. Negative reinforcement c. Extinction d. Reward enhancement e. All of these

c. Extinction

7. Which motivation theory proposes that needs must be satisfied in sequence? a. Reinforcement theory b. ERG theory c. Hierarchy of needs theory d. Experiential learning theory e. Social learning theory

c. Hierarchy of needs theory

Which of these questions is central to a functional-level strategy?

c. How do we support our chosen strategy?

74. Which of these is based on a set of international standards for quality? a. Quality circle b. Corporate governance c. ISO certification d. Open-book management e. Balance scorecard

c. ISO certification

104. _____ refers to the fact that services are perishable and cannot be stored in inventory. a. Boundarylessness b. Tangible output c. Intangible output d. Flexible operations e. Centralization

c. Intangible output

11. Mistletoe Corporation has a detailed set of organizational goals and management information system that delivers timely and accurate information. Mistletoe still has control problems, however, because its managers refuse to act on the information they receive. Mistletoe's control process has flaws in which of the following areas? a. Its performance standards b. Its management information systems c. Its ability to take corrective action when necessary d. Its measurement systems e. None of these

c. Its ability to take corrective action when necessary

28. Kevin's subordinates are highly trained and all perform similar tasks. Nichole's subordinates are spread over two locations and she has little available in the way of support systems. Which of the following statements is most correct? a. Nichole's span of management can be larger than Kevin's. b. Nichole will have problems with unity of command. c. Kevin's span of management can be larger than Nichole's. d. Kevin has more problems with work specialization. e. None of these.

c. Kevin's span of management can be larger than Nichole's.

77. Which of the following happens as organizations grow? a. Positions and departments are deleted. b. Management layers are eliminated to save cost. c. Managers have to find ways to tie different departments. d. Top management becomes more autocratic. e. None of these.

c. Managers have to find ways to tie different departments.

21. Which of the following typically is NOT considered a staff department? a. Strategic planning b. Accounting c. Manufacturing d. Human resources e. Research and development

c. Manufacturing

21. Which of the following are high-level needs, according to Herzberg, and include achievement, recognition, responsibility, and opportunity for growth? a. Hygiene factors b. Extrinsic factors c. Motivators d. Dissatisfiers e. All of these

c. Motivators

22. _____ have the greatest impact, according to Herzberg, on job satisfaction. a. Hygiene factors b. Reinforcers c. Motivators d. Dissatisfiers e. All of these

c. Motivators

Which of the following refers to the deployment of organizational resources to achieve strategic goals? a. Planning b. Controlling c. Organizing d. Leading e. Strategic management

c. Organizing

40. Tim is a manager at Chuck's Construction. He sees little opportunity for advancement at Chuck's Construction, regardless of how well he performs. Which of the following expectancies is low for Tim? a. E -> P expectancy b. O -> V expectancy c. P -> O expectancy d. E -> V expectancy e. None of these

c. P -> O expectancy

47. Which of the following is the administration of a pleasant and rewarding consequence following a desired behavior? a. Avoidance learning b. Punishment c. Positive reinforcement d. Extinction e. Suspension

c. Positive reinforcement

89. Which of the following is not an approach to structural design that reflects different uses of the chain of command? a. Matrix approach b. Team-based approach c. Process approach d. Divisional approach e. Virtual network approach

c. Process approach

46. Which of the following theories places an emphasis on behavior and its consequences? a. Two-factor theory b. Need hierarchy theory c. Reinforcement theory d. ERG theory e. Equity theory

c. Reinforcement theory

16. Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he or she has authority and responsibility for a distinct set of tasks. Employees are also aware of the company's reporting structure as well as successive management levels all the way to the top. Rebecca's company follows which principle? a. Specialization principle b. Unity of command principle c. Scalar principle d. Authority principle e. Responsibility principle

c. Scalar principle

Where does the information about opportunities and threats comes from?

c. Scanning the external environments

What type of organizational unit has a unique business mission, product line, competitors, and markets relative to other units in the same corporation?

c. Strategic business unit

_____ refers to the use of managerial tools to direct resources toward the achievement of strategic goals.

c. Strategy execution

30. Which of the following factors is NOT associated with larger span of control? a. Work performed by subordinates is stable and routine. b. Subordinates perform similar work tasks. c. Subordinates are located at various different locations. d. Subordinates are highly trained and need little direction. e. Rules and procedures defining task activities are available.

c. Subordinates are located at various different locations.

Which of the following refers to a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries?

c. Transnational strategy

41. Abbi works at Railroad Ties. Her bosses continually indicate that her motivational level is low. Abbi agrees, but is unwilling to work harder until the company changes the types of reward it offers its employees. Which of the following is low for Abbi? a. E -> P expectancy b. O -> P expectancy c. Valence d. Motivators e. O -> E indicators

c. Valence

32. _____ is the trend in recent years. a. Greater work specialization b. Less delegation c. Wider spans of management d. Narrower spans of management e. Tall structure

c. Wider spans of management

7. Which of the following refers to the degree to which organizational tasks are subdivided into individual jobs? a. Multitasking b. Lines of authority c. Work specialization d. Autonomy e. Team structure

c. Work specialization

80. A task force is _____ committee(s) formed to solve a specific problem. a. a standing b. a permanent c. a temporary d. all of these e. none of these

c. a temporary

82. On the continuum of empowerment, employees who are self-managed: a. give input. b. participate in decisions. c. are responsible for decision process and strategy. d. have no decision discretion. e. make decisions.

c. are responsible for decision process and strategy.

14. The formal and legitimate right of a manager to make decisions is _____. a. delegation b. responsibility c. authority d. span of management e. leadership

c. authority

40. In times of crisis or risk of company failure, authority should be: a. decentralized. b. centralized at the bottom. c. centralized at the top. d. spread through a wide span of management. e. flat.

c. centralized at the top.

12. Unity of command and the scalar principle are both closely related to the: a. amount of work specialization in an organization. b. degree of formalization. c. chain of command. d. amount of bureaucracy in the organization. e. matrix structure.

c. chain of command.

41. The _____ is purchase orders divided by customer inquiries. a. current ratio b. inventory turnover ratio c. conversion ratio d. profit margin on sales e. none of these

c. conversion ratio

79. The outcome of information and cooperation is _____. a. organization b. planning c. coordination d. differentiation e. controlling

c. coordination

20. Gina wishes to transfer authority and responsibility to her subordinates. This process is known as: a. accountability. b. coordination. c. delegation. d. departmentalization. e. passing the buck.

c. delegation.

41. When departments are grouped together on the basis of organizational outputs, the organization is using a: a. functional structure. b. matrix structure. c. divisional structure. d. virtual network structure. e. team-based structure.

c. divisional structure.

77. The delegation of power and authority to subordinates is referred to as: a. need for power. b. need for achievement. c. empowerment. d. passing the buck. e. need of affiliation.

c. empowerment.

Paramount, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as a(n) _____.

c. external threat

2. A(n)_____ refers to a reward given by another person. a. intrinsic reward b. internal reward c. extrinsic reward d. valued reward e. charity

c. extrinsic reward

96. The pure functional structure does not enable the organization to be: a. a cost leader. b. efficient. c. flexible. d. stable. e. all of these.

c. flexible.

With a(n) _____ strategy, the organization concentrates on a specific regional market or buyer group.

c. focus

67. Organ Rentals Corporation has been having numerous problems. Communication across departments is poor and decisions are backing up at the top of the organization. Organ Rentals uses a _____ structure. a. geographic b. product c. functional d. matrix e. team-based

c. functional

45. All functions in a specific country or region report to the same division manager in _____ divisions. a. functional b. matrix c. geographic-based d. teams e. networks

c. geographic-based

7. All of the following are key steps of setting up feedback control systems EXCEPT: a. comparing performance to standards. b. establishing standards. c. getting employee opinions. d. measuring performance. e. making necessary corrections.

c. getting employee opinions.

55. Total quality management: a. is based on the ideas of Frederick Taylor. b. gives managers total responsibility for achieving quality goals. c. gives all employees the responsibility for achieving quality goals. d. was first successfully implemented in the United States. e. is all of these.

c. gives all employees the responsibility for achieving quality goals.

29. In goal-setting theory, _____ refers to the idea that employees have to "buy into" the goals. a. goal specificity b. goal difficulty c. goal acceptance d. feedback e. goal motivation

c. goal acceptance

47. The basic philosophy of control at Nutrients-For-You, Inc. is based on the policies found in the employee handbook, as well as a strict hierarchy of authority. This philosophy is consistent with: a. clan control. b. bottom-up control. c. hierarchical control. d. culture control. e. decentralized control.

c. hierarchical control.

94. A pure functional structure is most appropriate for achieving: a. innovation. b. differentiation. c. internal efficiency goals. d. flexibility. e. all of these

c. internal efficiency goals.

62. Larry is looking for ways to increase the number of different tasks that an employee performs without increasing task complexity. He should try: a. job simplification. b. job enlargement. c. job rotation. d. job enrichment. e. job lay-off.

c. job rotation.

46. Global companies often use a _____ structure to achieve simultaneous coordination of products across countries. a. functional b. divisional c. matrix d. product-based e. process-based

c. matrix

21. According to the control model, after establishing standards of performance the manager should: a. compare performance to standards. b. get the standards approved by the supervisors and subordinates. c. measure actual performance. d. take corrective action. e. provide feedback.

c. measure actual performance.

19. According to Herzberg, _____ is an example of a hygiene factor. a. achievement b. recognition c. pay d. responsibility e. opportunity for growth

c. pay

44. Theories that explain how employees select the behaviors that allow them to meet their needs are known as: a. content theories. b. contingency theories. c. process theories. d. need hierarchy theories. e. reinforcement theories.

c. process theories.

86. A(n) ____ is responsible for coordinating the activities of several departments. a. department manager b. line manager c. project manager d. operative e. moderating manager

c. project manager

59. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common work activities is a _____. a. feedforward control group b. work team c. quality circle d. committee e. problem team

c. quality circle

17. Frank is primarily driven by a need to establish close social relationships with other people. Alderfer would say he is motivated by: a. growth needs. b. existence needs. c. relatedness needs. d. self-actualization needs. e. physiological needs.

c. relatedness needs.

60. According to MANAGER'S SHOPTALK in Chapter 10, all of the following are effective ways for a manager to delegate EXCEPT: a. delegate the whole task. b. select the right person. c. save feedback for completion of the project. d. evaluate and reward performance. e. give thorough instruction.

c. save feedback for completion of the project.

61. While job ____ can lead to greater task efficiencies, it has failed as a motivational technique. a. rotation b. enlargement c. simplification d. characteristics e. enrichment

c. simplification

69. The core dimension of Hackman and Oldham's model of job characteristics that is based on the number of diverse activities that make up a job is known as: a. autonomy. b. job enlargement. c. skill variety. d. task identity. e. feedback.

c. skill variety.

The question mark has a:

c. small market share in a rapidly growing industry.

66. To reduce the organization's cycle time is to reduce the number of: a. of committees in the organization. b. layers of management. c. steps in an organizational process. d. staff employees in the organization. e. none of these.

c. steps in an organizational process.

Some people argue that _____ is the most difficult and most important part of strategic management.

c. strategic execution

13. Kyle's work group consistently exceeds the goals the members set for themselves some months ago. In an attempt to better motivate the group, Kyle thought it would be a good idea to set new goals. This is an example of Kyle exercising control by: a. comparing performance to standards. b. developing adequate measures of performance. c. taking corrective action. d. all of these. e. comparing performance to standards and developing adequate measures of performance only.

c. taking corrective action.

71. The degree to which the job is perceived as important and having impact on the company or customers is referred to as: a. task complexity. b. task identity. c. task significance. d. task structure. e. task simplification.

c. task significance.

32. Brad is a department manager at Home Theater, Inc. His sole role in the budget process is to implement the budget that is developed for him. This is an example of: a. strategic budgeting. b. operational budgeting. c. top-down budgeting. d. management by objectives. e. bottom-up budgeting.

c. top-down budgeting.

57. The _____ is an organization structure that divides the major functions of the organization into separate companies. a. diversification approach b. team approach c. virtual network approach d. BCG approach e. functional approach

c. virtual network approach

58. The _____ is an organization structure that divides the major functions of the organization into separate companies and coordinates their activities from a small headquarters organization. a. diversification approach b. team approach c. virtual network approach d. BCG approach e. functional approach

c. virtual network approach

Strategy defines _____ to do (it) while organizing defines _____ to do (it). a. how; what b. how; why c. what; how d. what; why e. when; what

c. what; how

99. Which of the following is an incorrect fit in a stable organizational environment? a. A tight structure b. A rigid structure c. A functional structure d. A horizontal structure e. A vertical structure

d. A horizontal structure

18. The frustration-regression principle is most closely related with _____. a. Maslow b. Herzberg c. McClelland d. Alderfer e. Adam

d. Alderfer

72. _____ influences the critical psychological state of experienced meaningfulness of work. a. Skill variety b. Task significance c. Task identity d. All of these e. Task significance and task identity only

d. All of these

12. Your department has absenteeism standards, a way to measure absenteeism, and, based on your investigation, you have concluded that your department has an excessive absenteeism rate. What should your next step be? a. Set new absenteeism standards. b. Develop new measures of absenteeism. c. Terminate three employees for excessive absenteeism. d. All of these would be good examples of taking corrective action. e. None of these

d. All of these would be good examples of taking corrective action.

33. Kara and Simon are both middle managers at Gotcha International. Kara is dissatisfied because she knows that Simon makes more in salary even though, in Kara's opinion, she works longer hours than he does. If Kara wishes to reduce this perceived inequity, what should she do? a. She could reduce the number of hours she works. b. She could increase her level of absenteeism. c. She could ask for a raise. d. All of these. e. Only she could reduce the number of hours she works and she could ask for a raise.

d. All of these.

54. Jeff and Rob have a difficult time getting along at work. Most days, Jeff spends a lot of time cracking jokes and goofing off, while Rob constantly nags him and tells him to act like a grownup. On days when Jeff is more reserved, Rob does not nag him, hoping that this will result in improved behavior down the road. This is an example of which form of behavior modification? a. Empowerment b. Extinction c. Punishment d. Avoidance learning e. Positive reinforcement

d. Avoidance learning

30. Stella, a systems manager for a large technology company, would like to get an understanding of her company's financial position with respect to assets and liabilities at the end of the fiscal year. Which financial statement should she refer to? a. Income statement b. Activity ratio c. TQM report d. Balance sheet e. Balance scorecard

d. Balance sheet

8. Which of the following is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors? a. Economic value-added system b. Activity-based costing system c. Market value-added system d. Balanced scorecard e. Open-book management system

d. Balanced scorecard

14. Which need describes the desire to be accepted by one's peer, have friendships, be part of a group, and be loved? a. Self-actualization needs b. Physiological needs c. Esteem needs d. Belongingness needs e. Safety needs

d. Belongingness needs

63. Which of the following is the process of measuring your organizational process against the best in the industry? a. Outsourcing b. Continuous improvement c. Environmental analysis d. Benchmarking e. Competitive measurement

d. Benchmarking

36. Samuel, a sales associate at an electronics store, learns that his base pay is higher than any other sales associate in the store. He justifies his higher salary to the idea that he must be a top sales associate, generating more revenue than anyone else. This example demonstrates which method for reducing perceived inequity? a. Working harder, not smarter b. Changing outcomes c. Changing work effort d. Changing perceptions e. Leaving the job

d. Changing perceptions

People need to understand how their individual actions can contribute to achieving an organizational strategy. This can be accomplished by delegating authority, creating teams, and defining roles. These actions are part of which tool for putting strategy into action?

d. Clear roles and accountability

Which of the following is a business activity that an organization does especially well relative to its competition?

d. Core competence

Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices?

d. Differentiation

Q1. Salta Communications is a global telecommunications company that has operations on four continents. The CEO's direct supervisors include VPs for the North American South American, European, and the Asian divisions. Salta can best be described as using what organizational structure? a. Network b. Matrix c. Functional d. Divisional* e. Team

d. Divisional*

Which of the following portfolio categories is made up of poor performers who command only a small share of a slow growth market?

d. Dog

81. _____ is power sharing, or the delegation of power or authority to subordinates in an organization. a. Engagement b. Synergy c. Motivation d. Empowerment e. Leadership

d. Empowerment

32. _____ theory deals with employee's perception of fairness. a. Expectancy b. Reinforcement c. Need hierarchy d. Equity e. ERG

d. Equity

12. Nelson is motivated by a strong need for recognition and is continually seeking credit for his contributions to the organization. According to Maslow, Neil is motivated by which category of needs? a. Physiological b. Safety c. Belongingness d. Esteem e. Self-actualization

d. Esteem

Which of the following lists the strategic management process in proper order?

d. Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy.

25. Which of the following includes anticipated and actual expenses for a responsibility center? a. Revenue budget b. Cash budget c. Capital budget d. Expense budget e. Operating budget

d. Expense budget

55. Which of these refers to the withdrawal of a positive reward, meaning that behavior is no longer reinforced and hence is less likely to occur in the future? a. Avoidance learning b. Punishment c. Positive reinforcement d. Extinction e. None of these

d. Extinction

30. In goal-setting theory, which term refers to the need to get information to people about how well they are doing in progressing toward goal achievement? a. Goal specificity b. Goal difficulty c. Goal acceptance d. Feedback e. Goal motivation

d. Feedback

95. Which of the following structures is most consistent with a strategy of stability? a. Team based structure b. Organic structure c. Matrix structure d. Functional structure e. Learning structure

d. Functional structure

9. Which of the following is a content theory that proposes that people are motivated by physiological, safety, belongingness, esteem, and self-actualization needs? a. Reinforcement theory b. Process theory c. Situational theory d. Hierarchy of needs theory e. Contingency theory

d. Hierarchy of needs theory

Which of these is true about the cash cow?

d. It has a large market share in a slow growth industry.

Which of these is true about the dog division?

d. It has a small share of a slow growth market.

71. Which of the following is(are) an advantage of team structure? a. Increased barriers among departments b. Unplanned decentralization c. Time and resources spent on meetings d. Less response time, quicker decisions e. All of these

d. Less response time, quicker decisions

24. Carly's Clothes, Inc. manufactures children's clothes. Which of the following departments for Carly's Clothes can be considered a line department? a. Finance department b. Human Resources department c. Research and development department d. Manufacturing department e. Marketing department

d. Manufacturing department

_____ refers to the modification of product design and advertising strategies to suit the specific needs of individual countries.

d. Multidomestic strategy

37. _____ refer(s) to the difference between assets and liabilities and is the company's net worth in stock and retained earnings. a. Assets b. Current debt c. Net profit d. Owners' equity e. Liabilities

d. Owners' equity

87. Lisa is responsible for coordinating the efforts of several different departments. Which of the following titles best describes her position? a. Department manager b. Middle manager c. First-level supervisor d. Project manager e. Chairman of the board

d. Project manager

69. _____ is(are) most beneficial when employees have challenging jobs. a. Six Sigma b. Total Quality Management c. Kaizen d. Quality circles e. Continuous improvement

d. Quality circles

Which of the following strategies refers to moving into a new business that is related to the company's existing business activities?

d. Related diversification

22. Tiffany recently discovered that the reject rate for her department has exceeded the standard for performance in this area. What should Tiffany do to exercise effective control? a. She should order more training for her workforce. b. She should contact the maintenance department and have them come fix her machinery. c. She should suspend the poorer workers in her department. d. She should investigate and discover the cause of the problem. e. None of these

d. She should investigate and discover the cause of the problem.

64. Which of the following is a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs? a. Continuous improvement b. Cycle time c. Quality circles d. Six Sigma e. Benchmarking

d. Six Sigma

Q1. Which of the following statements are incorrect: a. Business growth rate and market share are important dimensions in the BCG matrix. b. According to Porter's 5-forces model, threat from substitute products is synonymous with potential new entrants affecting industry competition.* c. In a BCG matrix, Questions Marks should never be divested.* d. Starbucks company removed the word "Coffee" from its logo because it plans to get out of the coffee business. It is planning to diversify into other products and services because there is too much competition in the coffee business.* e. Starbucks created Seattle's Best brand and sells their specialty coffee through Sub-way stores in order to compete directly with other fast food restaurants such as McDonalds and Dunkin Donuts.

d. Starbucks company removed the word "Coffee" from its logo because it plans to get out of the coffee business. It is planning to diversify into other products and services because there is too much competition in the coffee business.*

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon?

d. Synergy

37. Jacob, a customer service representative for AB Retailers, has seven levels of management between himself and the company's CEO. In contrast, his friend Rhonda, a customer service representative for YZ Retailers, has only four levels of management between her and the company CEO. Compared to YZ, Jacob's company has what type of organizational structure? a. Narrow b. Wide c. Flat d. Tall e. Identical

d. Tall

73. Which of the following is a contemporary approach to structural design in departmentalization? a. Functional b. Divisional c. Traditional divisions d. Teams e. Geographic-based

d. Teams

57. Charlie, a manager at a textile company, is bothered by a lack in quality of products manufactured by his company. Charlie hopes to infuse quality into the company through continuous improvement by involving everyone who works there. This describes which control philosophy? a. Balanced scorecard b. Six Sigma c. Continuous improvement d. Total quality management e. Open-book management

d. Total quality management

FLY Industries is a global conglomerate company headquartered in the United States that does business in over fifty countries. The company seeks to balance global efficiencies and local responsiveness by hiring locally as well as from home. It can best be described as using which global corporate strategy?

d. Transnational strategy

18. The people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. This is called _____. a. delegation b. line authority c. staff authority d. accountability e. hierarchy

d. accountability

78. When the organization is structured along _____ lines, coordination is required. a. functional b. divisional c. team d. all of these e. functional or divisional

d. all of these

49. Disadvantages of the virtual network approach include: a. a lack of hands-on control. b. the possibility of losing an important part of the organization. c. weakened employee loyalty. d. all of these. e. a lack of hands-on control and weakened employee loyalty.

d. all of these.

5. The organization chart: a. shows the characteristics of the organization's vertical structure. b. is a visual representation of the organization's structure. c. details the formal reporting relationships that exist within an organization. d. all of these. e. both shows the characteristics of the organization's vertical structure and is a visual representation of the organization's structure.

d. all of these.

74. The team approach to departmentalization is a response to: a. lack of participative teams. b. centralized decision-making. c. the competitive global environment. d. all of these. e. both lack of participative teams and centralized decision-making.

d. all of these.

33. Pauline is an area manager at Ironman Gym. She anticipates her area's needs and formulates a proposed budget every quarter. She then sends this proposal to her manager. This is an example of: a. top-down budgeting. b. strategic budgeting. c. revenue budgeting. d. bottom-up budgeting. e. none of these.

d. bottom-up budgeting.

Decisions regarding the proper amount of advertising for a particular good or service are related to:

d. business-level strategies.

11. Jacob was recently looking at his company's organization chart in an attempt to discover who reports to whom. Jacob is studying his organization's: a. degree of formalization. b. amount of differentiation. c. degree of centralization. d. chain of command. e. division of labor.

d. chain of command.

When AT&T decided to buy Media One, a cable company, it was pursuing a(n) _____ strategy.

d. corporate-level

If ABC International has standardized its product line throughout the world it is pursuing a:

d. globalization strategy.

Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the competition. The creativity of these employees would be classified as a(n) _____.

d. internal strength

66. A job design that incorporates achievement, recognition, and other high-level motivators into the work is referred to as: a. job simplification. b. job rotation. c. job enlargement. d. job enrichment. e. none of these.

d. job enrichment.

76. The job characteristic of feedback provides the worker with: a. employee growth-need strength. b. experienced meaningfulness of work. c. experienced responsibility. d. knowledge of actual results. e. demotivation.

d. knowledge of actual results.

48. Kent works at the Tick Tock, Inc. He has two bosses, one a functional manager and the other a divisional manager. Tick Tock, Inc. has a _____ structure. a. functional b. divisional c. geographic d. matrix e. product

d. matrix

31. Relative to a flat organizational structure, a tall structure has a _____ span of management and _____ hierarchical levels. a. wide; fewer b. narrow; fewer c. narrow; wider d. narrow; more e. wide; more

d. narrow; more

53. The goal of _____ is to get every employee thinking and acting like a business owner. a. management-by-walking around b. closed-book management c. MBO d. open-book management e. just-in-time inventory systems

d. open-book management

48. Bruce publicly praises his employees when they have achieved their goals. Bruce hopes this will increase the likelihood of goal achievement in the future. This is an example of: a. extinction. b. negative reinforcement. c. avoidance learning. d. positive reinforcement. e. none of these.

d. positive reinforcement.

43. Net income divided by sales is the correct formula for calculating: a. return on total assets. b. a current ratio. c. a liquidity ratio. d. profit margin on sales. e. a corporate evaluation.

d. profit margin on sales.

26. Traditionally, a span of management of about _____ has been recommended. a. three b. five c. fifteen d. seven e. twenty

d. seven

100. In _____ production, firms produce goods in batches of one or a few products designed to customer specification. a. service b. customer-induced c. continuous process d. small batch e. mass

d. small batch

Gatekeep Utilities is a subsidiary of GW Enterprises. Gatekeep has a mission and product line that is unique from GW. Gatekeep's competitors are also very different from those of its parent, and the subsidiary markets to a very different group of customers. As such, Gatekeep can be described as a(n) _____.

d. strategic business unit

81. Marissa was recently assigned to a committee whose task is to research new product opportunities. Once this group generates a list of six or seven viable options, it will be disbanded. This group is also known as a _____. a. team b. standing committee c. permanent committee d. task force e. none of these

d. task force

90. Kara's department is made up of people with similar skills and work activities. Her organization uses the _____ approach to departmentalization. a. team-based b. horizontal matrix c. divisional d. vertical functional e. process

d. vertical functional

56. Walt works for a large company. Recently, his organization began to contract out such functions as training, engineering, and computer service. This approach is consistent with a _____ structure. a. functional b. team c. divisional d. virtual network e. service

d. virtual network

When Coca-Cola introduced Surge, a new citrus soft-drink, what type of strategy was being pursued?

e. Business-level strategy

According to the BCG Matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share?

e. Cash cow

34. Which of the following is NOT a common method for reducing a perceived inequity? a. Change inputs b. Change outcomes c. Distorts perception d. Leave the job e. Change equity

e. Change equity

_____ level strategy pertains to the major functional departments within the business unit.

e. Functional

50. Salta Communications is a global telecommunications company that has operations on four continents. The CEO's direct supervisors include VPs for the North American South American, European, and the Asian divisions. Salta can best be described as using what organizational structure? a. Network b. Matrix c. Functional d. Divisional e. Geographic

e. Geographic

14. In the process of implementing the balanced scorecard approach at his company, operations manager Seth Howard wonders whether internal activities and processes add value for customers and shareholders. This involves which dimension of the balanced scorecard? a. Customers b. Learning and growth c. Financials d. External business processes e. Internal business processes

e. Internal business processes

64. Which of these combines a number of tasks horizontally into one, new broader job? a. Job simplification b. Job rotation c. Job enrichment d. All of these e. None of these

e. None of these

54. Silver n' Gold Inc. recently introduced a new control philosophy where all employees have access to the same information that owners have, such as what money is coming in and where it is going. This is an example of which control philosophy? a. Balanced scorecard b. Six Sigma c. Continuous improvement d. Total quality management e. Open-book management

e. Open-book management

10. _____ focus on employee learning of desired work behaviors. a. Contingency theories b. Situational theories c. Content theories d. Process theories e. Reinforcement theories

e. Reinforcement theories

Q2. Sally enjoys her job as a teacher, not because of the pay or benefits, but because she feels good and is passionate about shaping the minds of tomorrow's leaders. Which of the following about Sally are incorrect statements: a. Her reward valence is not dependent on pay and benefits. b. She is most likely to apply positive, negative, punishment and extinction reinforcement principles on her students. c. She regards pay and benefits as hygiene factors d. She regards pay and benefits as intrinsic rewards* e. She is motivated more by extrinsic rewards*

e. She is motivated more by extrinsic rewards*

57. Which theory proposes that an individual's motivation can result not just from direct experience of rewards and punishments but also from the person's thoughts and beliefs and his or her observations of other people's behavior? a. Reinforcement theory b. Hierarchy of needs theory c. ERG theory d. Experiential learning theory e. Social learning theory

e. Social learning theory

Q2. Which of the following statements are incorrect: a. When PepsiCo CEO Indra Nooyi makes the strategic decision to spin-off the group of fast food restaurants into Yum Brands, she is basing her decision on the distinctly different type of employee competencies needed in each industry to succeed. She concluded there is "not enough" synergy or relatedness between the two industries. b. During the recent global economic downturn, PepsiCo CEO Indra Nooyi makes the strategic decision to invest aggressively in the BRIC countries based on broadly stated information on these countries' GNP growth and demographic trends. c. Bloomingdale Stores can be said to adopt a cost leadership strategy.* d. Costco Stores can be said to adopt a differentiation strategy.* e. Southwest Airlines can be said to adopt a differentiation strategy because of its aggressive pricing.*

e. Southwest Airlines can be said to adopt a differentiation strategy because of its aggressive pricing.*

78. Empowering employees means giving employees _____. a. information b. knowledge c. power d. rewards e. all of these

e. all of these

70. Advantages of the matrix structure include: a. it increases employee participation. b. it makes efficient use of human resources. c. it works well in a changing environment. d. it develops both general and specialist management skills. e. all of these.

e. all of these.

Techniques used to monitor external environments include:

e. all of these.

4. According to MANAGER'S SHOPTALK in Chapter 19, the interest in self-awareness is part of a growing discipline called _____. a. employee self promotion b. emotional development c. self-leadership d. emotional hueristics e. auto-analytics

e. auto-analytics

35. The firm's financial position with respect to assets and liabilities at a specific point in time is shown by its: a. activity ratio. b. profitability ratio. c. income statement. d. liquidity ratio. e. balance sheet.

e. balance sheet.

103. In a _____ organization, the entire work flow is mechanized in a sophisticated and complex form of production technology. a. service production b. mass production c. large-batch production d. small-batch production e. continuous process production

e. continuous process production

92. An organization strives for internal efficiency with a(n) _____ strategy. a. integration b. diversification c. differentiation d. defensive e. cost leadership

e. cost leadership

84. Carla's subordinates view her as a great manager. Not only does she get the job done, but she organizes the workplace in such a way that employees experience a sense of meaningfulness, connection, and growth. This is an example of employee: a. pay-for-performance. b. delegation. c. empathy. d. apathy. e. engagement.

e. engagement.

52. All of the following are the major disadvantages of the matrix structure EXCEPT: a. it generates a large amount of conflict. b. managers spend much time resolving conflict. c. the confusion caused by the dual chain of command. d. the power imbalance that can result between the sides of the matrix. e. enlarged tasks for employees.

e. enlarged tasks for employees.

17. All well-designed control systems involve the use of _____ to determine whether performance meets established standards. a. opinions b. advice c. consultants d. benchmarks e. feedback

e. feedback

The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals.

e. human resource

5. Sally enjoys her job as a teacher, not because of the pay or benefits, but because she feels good about shaping the minds of tomorrow's leaders. Sally is motivated by: a. power factors. b. leadership factors. c. hygiene factors. d. extrinsic rewards. e. intrinsic rewards.

e. intrinsic rewards.

70. Contingency factors that can influence the success of a TQM program in a positive way include all of the following EXCEPT: a. tasks make high skill demands on employees. b. TQM serves to enrich jobs and motivate employees. c. problem-solving skills are improved for all employees. d. participation and teamwork are used to tackle significant problems. e. managers wait for big, dramatic innovations.

e. managers wait for big, dramatic innovations.

6. The _____ delineates the chain of command, indicates departmental tasks and how they fit together, and provides order and logic for the organization. a. management chart b. employee directory c. structural table d. administrative chart e. organizational chart

e. organizational chart

49. Decentralized control is usually implemented in all of the following areas EXCEPT: a. self-control. b. peer group. c. corporate culture. d. employee selection and socialization. e. the quality control department.

e. the quality control department.

68. All of the following are advantages of a divisional structure EXCEPT: a. high concern for customers' needs. b. fast response, flexibility in an unstable environment. c. emphasis on overall product and division goals. d. development of general management skills. e. there is little duplication of services across divisions.

e. there is little duplication of services across divisions.

53. Juan is a top manager at I.F.L., a matrix organization. He oversees both the product and functional chains of command, and is responsible for maintaining a power balance between the two sides of the matrix. Juan is a _____. a. political leader b. functional leader c. divisional leader d. matrix leader e. top leader

e. top leader

72. A contingency factor that can influence the success of a TQM program in a negative way is that: a. continuous improvement is a way of life. b. TQM serves to enrich jobs and motivate employees. c. problem-solving skills are improved for all employees. d. participation and teamwork are used to tackle significant problems. e. union leaders are left out of QC discussions.

e. union leaders are left out of QC discussions.