MGMT300 Final Cumulative Exam Review

To encourage more ethical decision making in an organization, managers should ____.

Do all of the following: -carefully select and hire new employees -establish a specific code of ethics -create an ethical climate -train employees in how to make ethical decisions)

Which of the following statements about portfolio strategy is true?

Dysfunctional consequences can occur when companies are categorized

Punishment is also called avoidance learning

False

____ are both examples of cooperative contracts.

Franchising and licensing

Which of the following a major concern of leaders (as opposed to managers)?

Inspiring and motivating others

Who is responsible for the creation of tactical plans?

Middle managers

What do middle managers typically do?

They do ALL of the following: -Plan and allocate resources -Coordinate and link groups and departments, -Implement changes and strategies generated by top managers, -Monitor the activities of first-line managers who report to them

Different businesses often need different combinations of global consistency and local adaptation.

True

Ethics is the set of moral principles or values that defines right and wrong for a person or group.

True

Which of the following is one of the six steps in the rational decision-making process?

Weight the criteria

In expectancy theory, ____ is the perceived relationship between effort and performance.

expectancy

The highest level of team autonomy is found in _____.

self-designing teams

The two general kinds of trade barriers are _____.

tariff barriers are non-tariff barriers

According to ______, leaders need to make clear how followers can achieve organizational goals, take care of problems that prevent followers from achieving goals, and then find more and varied rewards to motivate followers who achieve those goals.

the path-goal theory

What is social responsibility?

A business' obligation to pursue policies, make decisions, and take actions that benefit society

The first step in the strategy-making process is to ______.

Assess the need for strategic change

Companies may determine standards by _____.

Benchmarking other companies (also by goal achievement and by listening to customers)

The achievement of stretch goals is made easier when the team members have _____.

Bureaucratic immunity

How are organizations using teams to help increase customer satisfaction?

By creating problem-solving teams to study ways to improve customer satisfaction and make recommendations for improvements.

How do employees try to restore equity when they perceive that they have been treated unfairly?

By doing any of the following: -by rationalizing inputs or outcomes -by changing the referent - by simply quitting their jobs -by reducing the level of energy & time they input into a project

Which of the following is NOT one of the core job characteristics in the job characteristics model (JCM)?

Client relationships

Which of the following statements regarding cohesiveness is true?

Cohesive groups have lower turnover

Which skills increase in their importance to success as managers rise through the managerial ranks?

Conceptual skills and the motivation to manage

A manager engaged in the management function of _____ is monitoring progress toward goal achievement and taking corrective action when needed

Controlling

Which of the following statements about corporate culture is true?

Corporate cultures are very difficult to change

For the goal-setting theory to work, goals must ____.

Do all of the following: -focus employees' attention on critical aspects of their jobs -energize behavior - create a tension between the current state and the desired state - be truly accepted by workers

One of the benefits of planning is how it _______.

Does none of the following: encourages people to work faster, encourages people to try a variety of different ways to do others' jobs, reduces employee turnover, eliminates all discriminatory practices

Which of the following statements about social responsibility is true?

Economic and legal responsibilities play a larger role in a company's social responsibilities.

A manager striving to improve organizational __________ is accomplishing tasks that help fulfill organizational objectives.

Effectiveness

First-line managers will most likely have to:

Encourage, monitor, and reward the performances of their employees

The most popular approach to increasing goal commitment is _____.

Encouraging workers' participation in goal setting

Extrinsic rewards are _______.

Exemplified by bonuses, trophies, and plaques

all events outside a company that have the potential to influence or affect it occur in the _________ environment.

External

According to some industrial psychologists, Performance=Motivation*Ability

False

Benchmarking is the process of setting corporate norms.

False

Cohesiveness refers to the extent to which members of a team are experiencing job satisfaction.

False

The stakeholder model holds that the only social responsibility that businesses have is to maximize profits.

False

The term excessive value appropriated (EVA) refers to the amount by which profits (after expenses) exceed the cost of capital in a given year.

False

Conceptual skills are most important for lower-level managers

False (Technical skills are most important for lower-level managers and team leaders)

Buyer dependence is the degree to which a company relies on a supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that product.

False (that is the definition of supplier dependence)

The only kinds of adaptive strategies are defending- analyzing- and reacting.

False (there are four kinds: all above including prospecting)

The balanced scorecard approach to control _____.

Forces managers at each level of the company to set specific goals and measure performance in each of four areas

How is management defined?

Getting work done through others

The normative decision theory _____.

Helps managers determine how much employee participation should be used in decision making

A manager who wants to use reinforcement theory to motivate workers should first _____.

Identify critical performance-related behavior

An expatriate is someone who ____.

Lives and works outside of his or her own country

Economic value added (EVA) is so important because it _____.

Makes managers at all levels pay much closer attention to how they run their segment of the business

The two general categories of stakeholders are _____ stakeholders and _____ stakeholders.

Primary; secondary

An organization that has _________ has the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.

Resources

Which of the following is NOT one of the characteristics of S.M.A.R.T. goals?.

Synergistic

Which type of skills tend to be most important to the success of lower-level managers?.

Technical skills

The basic control process begins with _____.

The establishment of clear standards of performance

As described in path-goal theory, directive directive leadership is similar to the key leadership behavior of initiating structure.

True

Because external environments can be dynamic confusing, and complex, managers use a three-step process to make sense of the changes in their external environments. Those steps are (1) environmental scanning, (2) interpreting environmental factors, and (3) acting on threats and opportunities.

True

Both proximal and distal goals are used to provide additional motivation and rewards for employees

True

Companies use their resources to improve organizational efficiency and effectiveness.

True

Control is achieved when behavior and work procedures conform to standards and company goals are accomplished.

True

Cross-functional teams are purposefully composed of employees from different functional areas of the organization.

True

Customs classification is a non-tariff trade barrier. It is important to international marketers because the category assigned by customs agents can affect the size of the tariff and the impact of import quotas.

True

Empowerment can lead to changes in organizational processes because meaning, competence, impact, and self-determination produce empowered employees who take active rather than passive roles in their work.

True

The normative decision theory helps leaders decide how much employee participation should be used when making decisions.

True

The objective control approach to managerial control manifests itself as either behavior control or output control.

True

The term decision making is used to refer to the process of choosing a solution from available alternatives

True

The two kinds of inequity are underreward and overreward

True

functional departmentalizaton

allows work to be done by highly qualified specialists

virtual teams _________.

are very flexible

Managers can motivate employees to increase their efforts by ____.

asking employees what their needs are then matching rewards to those needs

The two types of objectives controls managers use are _____.

behavior and output

Which of the following is NOT a dimension of the political/legal component of the general environment that governs and regulates business behavior?

competitive products

Which of the following is another term for initiating structure leadership behavior?

concern for production

____ control is a method of gathering information about performance deficiencies as they occur.

concurrent

The the basic control methods are _____.

concurrent, feedback, feedforward

The primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is _____.

costs

_____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.

direct foreign investment

A country or region that has an attractive business climate for companies that want to go global has ____.

easy access to growing markets

Process modification, material/product substitution, and _____ are 3 strategies used for waste prevention and reduction.

good housekeeping

The basic model of ethical decision making _____.

is not accurately described by any of these

decentralization

leads to faster decision making and more satisfied customers and employees

The 3 components of ______ are initiation of effort, direction of effort, and persistence of effort.

motivation

modular organizatons

outsource all but the core business activities that they can perform best

Which of the following factors helps a company determine the growth potential of a foreign market?

purchasing power

One of the major questions that a company must typically answer once it has decided to go global is _____.

To what extent should the company standardize or adapt business procedures?

A joint venture is an example of strategic alliance.

True

A management study discovered that companies which invest in their people will create long-term competitive advantages difficult for other companies to duplicate.

True

A primary source of organizational culture is the company founder.

True

According to expectancy theory, instrumentality is strong when employees believe that improved performance will lead to better and more rewards

True

An intrinsic reward is a reward associated with performing task or activity for its own sake

True

An organic organization is characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on knowledge

True

Fiedler's contingency theory states that in order to maximize work group performance, leaders must be matched to the situation that best fits their leadership style.

True

For goal-setting theory to motivate employees, managers must provide frequent, specific, performance-related feedback.

True

For planning to be effective, workers need a specific, challenging goal as well as regular feedback to track their progress.

True

For punishment to work, the punishment must be strong enough to stop the undesired behavior and must be administered objectively, impersonally, consistently and contingently, and quickly.

True

From a competitive standpoint- resource similarity means that the strategic actions your company takes can probably be matched by your direct competitors.

True

Functional departmentalization organizes work and workers into separate units responsible for particular business functions or areas of expertise.

True

Good management is basic to starting a business & growing a business & maintaining a business once it has achieved some measure of success (doesn't become less important)

True

In a multinational company, managers at company headquarters may value global consistency as a company policy over local adaption because global consistency simplifies decision-making at corporate headquarters.

True

In many industries, teams are growing in importance because they help organizations respond to specific problems and challenges.

True

In the decision-making process, teams can do a much better job than individuals in defining the problem and generating alternative solutions.

True

It would be safe to say that, while it sometimes pays to be socially responsible, at other times socially responsible can create significant costs

True

Leadership is the process of influencing others to achieve group or organizational goals.

True

Middle managers are typically responsible for coordinating and linking groups- departments- and divisions within a company.

True

Motivation is the set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal

True

Multinational corporations are corporations that own businesses in two or more countries.

True

Organizational structure is the vertical and horizontal configuration of departments, authority, and jobs within a company.

True

Portfolio strategy is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.

True

Resource scarcity is the degree to which an organization's external environment has an abundance or lack of critical organizational resources.

True

Stakeholders are people or groups with an interest in a company's actions.

True

Tactical plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.

True

Team leaders are responsible for managing both internal team relationships and external relationships with other teams, departments, and divisions in a company.

True

The categories of social responsibility for a company are economic, legal, ethical, and discretionary

True

The control process begins when managers set goals.

True

The first step in establishing an ethical climate in a company is for managers to act ethically themselves.

True

The last stage of team development, where decline is complete, is the de-forming stage.

True

The three positioning strategies are cost leadership, differentiation, and focus.

True

The three strategies used to minimize or to adapt to the political risk inherent to global business are avoidance, control, and cooperation.

True

The three techniques that can be used by advocacy groups to influence companies are public communications, media advocacy, and product boycotts.

True

The two disadvantages associated with product departmentalization are costly duplication and difficulties with cross-departmental coordination

True

The two kinds of cooperative contracts are licensing and franchising.

True

The two kinds of external organizational environments are the general environment that affects all organizations and the specific environment that is unique to each company.

True

There is no such thing as a "best" leadership style for all situations and employees.

True

Transformational leadership is leadership that generates awareness and acceptance of a group's purpose and mission and gets employees to see beyond their own needs and self-interest for the good of the group.

True

Two factors that help companies determine the growth potential of foreign markets are purchasing power and foreign competitors.

True

Upper-level managers may actually spend more time dealing with people than lower-level managers.

True

While the interorganizational process revolves around a central company in modular organizations, a virtual organization is part of a network in which many companies share skills, costs, capabilities, markets, and customers with each other.

True

While transformational leaders use visionary and inspirational appeals to influence followers, transactional leadership is based on an exchange process.

True

An often overlooked factor in determining the cost of control is ____.

Unintended consequences that accompany increased control

According to the expectancy theory, _____ affect the conscious choices that people make about their motivation

Valence, expectancy, and instrumentality

___________ involves deciding who your competitors are, anticipating competitors moves, and determining competitors' strengths and weaknesses

a competitive anaylsis

Which of the following is a viable strategy for changing organizational culture?

all of the following: -allow employees to personalize their offices -use behavioral substitution and behavioral addition -Select job applicants with appropriate values and beliefs -Eliminate the company dress code)

In order to change an organizational culture, top management can persuade other managers and employees to perform a new behavior in place of an older one. This technique is called _______.

behavioral substitution

The _____________ is purposefully composed of employees from different functional areas of the organization.

cross-functional team

According to the path-goal theory of leadership, _____ involves letting employees know precisely what is expected of them, giving them specific guidelines for performing tasks, scheduling work, setting standards of performance, and making sure that people follow standard rules and regulations.

directive leadership

What are the four decisional roles

entrepreneur, disturbance handler, resource allocator, and negotiator.

The first step managers use to make sense of their changing environment is ________.

environmental scanning

Which of the following types of global organization is most likely to suffer problems associated with being culture bound?

franchising

McDonalds's uses a ______ strategy (a kind of grand strategy) as its increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's versions of a popular French grilled sandwich.

growth

A company facing a simple environment would _____.

have few external factors in the environment that affect it

Which of the following traits refers to the extent to which leaders are truthful with others?

honesty

Which of the following is a component of the specific environment that would directly influence a restaurant's day-to-day operation?

its regular customers

Effective managers define _____ as the process of influencing others to achieve group or organizational goals.

leadership

Which of the following is a basic component of equity theory?

referents

Ethical intensity depends on all of the following EXCEPT ____.

social commitment

____ is one of the disadvantages associated with the use of work teams.

social loafing

Whereas managers tend to have a short-term perspective, leaders tend to have a long-term perspective.

true

Which of the following is a mechanism used to examine external threats and opportunities facing a firm as well as its internal strengths and weaknesses?

A situational analysis

Which of the following statements about a company's vision is true?

All of the following are true: -a company's vision refers to its purpose or reason for existing - a company's vision can make its strategic purpose and direction apparent to everyone - a company's vision can help to guide decision making under conditions of environmental uncertainty - a clear and compelling vision tends to raise the level of employee involvement)

Which of the following statements about matrix departmentalization is true?

All of the following statements are True (most employees in an organization that uses matrix departmentalization report to 2 bosses; with matrix departmentalization, there tends to be more cross-functional interaction among employees than in other types of departmentalization; with matrix departmentalization, there needs to be significant coordination between functional and project managers; the most common matrix combines product and functional departmentalization

Which of the following is an advantage associated with the use of project teams?

All of the following: -reduction or elimination of communication barriers -flexibility -increased cooperation among separate departments - faster design process

Which of the following is a reason teamwork can be more satisfying than traditional work?

All of the following: -teamwork often allows teams to receive proprietary business information that is only available to managers - teamwork provides team members with unique work opportunities - teamwork gives workers a chance to improve their skills - teamwork gives workers unique leadership responsibilities which enable them to build individual leadership skills)

Which of the following management practices can be used by an organization that wants to create a competitive advantage through its employees?.

All of the following: (Self managed teams, employment security, high wages contingent on organizational performance, sharing info)

Successful business leaders are not like other people. Successful business leaders _____.

Are accurately described by all of the following: -have a desire to lead - have emotional stability - are knowledgeable about business - are self-confident

_____ is the measure of the intensity of competitive behavior between companies in an industry.

Character of the rivalry

______ is the process of choosing a solution from available alternatives.

Decision making

While _____ are tangible ______ are not.

Distinctive competencies; core capabilities

The primary disadvantage of customer departmentalization is ______.

Duplication

Feedback can lead to stronger motivation and effort if it ____.

Encourages employees to set higher, more difficult goals after the initial goals are accomplished

A top manager for a management consulting firm would:

Establish a positive organizational culture that encourages employees to be passionate about their clients

Which of the following statements about ethics is true?

Ethics is the set of moral principles or values that defines right and wrong for a person or group

Quality is typically defined and measured in 3 ways. They are ____.

Excellence, value, and conformance to expectations

A virtual organization is an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants

False

As a leader behavior, consideration refers to the extent to which leaders do what they said they would do.

False

Companies will be considered unethical if they do not perform their discretionary responsibilities

False

Control loss usually has no effect on goal achievement.

False

Developing a vision and mission statement is the sole responsibility of middle management.

False

Environmental complexity refers to the degree of change in the external factors that affect organizations.

False

Global new ventures bring a good or service to market in one foreign market as a time

False

Goal specificity is the extent to which a goal is hard or challenging to accomplish.

False

Management by objectives is a two-step process in which managers and their employees discuss possible goals and then meet regularly to review progress toward the accomplishment of these goals.

False

One of the disadvantages of project teams is their lack of flexibility.

False

Since teams should be an end in themselves, it is appropriate to use them in most situations.

False

Specialized jobs are general inefficient

False

Strategic leadership is defined as the ability to think strategically and create a strategic plan for an organization.

False

Team normalization represents the differences in ability, experience, personality, or any other factor on a team.

False

Teams do not perform any better when offered extrinsic rewards.

False

The 3 levels of waste minimization are waste disposal, waste reduction, and recycling.

False

The balanced scorecard approach to control emphasizes measurement of organizational performance in 3 equally important areas. These areas are finances, internal operations, and innovation and learning.

False

The basic components of equity theory are outcomes, instrumentality, and valence

False

The level of agreement on whether behavior is good or bad is defined as the level of ethical acceptance.

False

The most common type of training provided to members of work teams is training in leadership skills

False

The only dimension needed to measure quality is conformance to expectations.

False

The organization's vision must regularly change to adapt to changes in the environment over time.

False

The specific segment of an organization's external environment is unique to its region of the country.

False

The two approaches to maintaining flexibility in organizations while they plan are outcome-based planning and change-based planning.

False

There is general agreement regarding what is socially responsible corporate behavior.

False

When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

False

The number one mistake made by managers who were derailed from their fast track up the managerial ranks was that they didn't develop the necessary technical skills.

False ( "mistake is...that they were insensitive to others by virtue of their abrasive, intimidating, and bullying management style")

Successful organizational cultures seem to be based solely upon consistency (i.e. "strength" of the organizational culture).

False (..based upon adaptability, involvement, a clear mission, and consistency)

Top managers are the managers responsible for facilitating team activities toward goal achievement.

False (Team leaders are responsible)

When companies are performing above or better than their strategic reference points, top management is more likely to choose a daring, risk-taking strategy.

False (avoid risk-taking strategies)

Cross-department coordination tends to be very easy in organizations with functional departmentalization.

False (cross-department coordination can be difficult with functional departmentalization)

If retrenchment works, it is typically followed by a stability strategy.

False (followed by a recovery strategy)

The greater the market commonality, the less intense the direct competition between two companies.

False (market commonality: degree to which 2 companies have overlapping products, services, or customer overlap)

First-line managers are responsible for setting objectives consistent with organizational goals and planning and implementing subunit strategies for achieving these objectives.

False (middle managers are responsible for that)

Most companies compete directly with all the firms in their industry.

False (most do not compete)

Organizational heroes are used to make sense of organizational events and changes.

False (organization stories are used to make sense of organizational events and changes...)

Planning is a three, step process which involves first setting goals, next developing effective action plans, and finally tracking progress toward goal achievement.

False (planning consists of five steps)

According to the stakeholder model of social responsibility, no stakeholder groups are more or less important than any other.

False (primary stakeholders are more important)

Concurrent control seeks to prevent or minimize performance deficiencies before they occur.

False (that is a characteristic of feedforward)

The most common matriz combines customer and functional forms of departmentalization.

False (the most common matrix combines product and functional forms of departmentalization)

Companies face very little uncertainty in their strategic business environments.

False (there is a great deal of uncertainty)

S.M.A.R.T goals are Specific- Meaningful- Active- Reachable- and Timely.

False (they are Specific- Measurable- Attainable- Realistic- and Timely)

Which of the following is an example of a situational theory of leadership?

Fiedler's contingency theory

The two major approaches to corporate-level strategy are ____.

Grand strategies and the portfolio strategy

For options-based planning to work- the organization must ______.

Have slack resources

The chain of command ________.

Is described by none of the following (is the horizontal line of authority that indicates at which level of management an individual belongs, acts at cross-purposes to the unity of command principle, is only relevant in mechanistic organizations, does not permit delegation of authority)

Which of the following is NOT a step in the management by objectives (MBO) process?

Jointly develop operational plans

Which of the following statements about mechanistic organizations is true?

Mechanistic organizations work best in stable, unchanging business environments

Which of the following statements about the Strategic Point Theory is true?

None of the following statements about the Strategic Reference Point Theory are true ( the theory doesn't consider risk factors, the theory is deterministic, the theory may lead to bureaucratic management, this theory recommends that managers don't change strategic reference points)

All of the following are important factors in the creation of an ethical business climate EXCEPT ______.

Official approval of the company's ethics code by government regulators.

There are three kinds of _____ plans. They are single-use plans, standing plans, and budgets.

Operational

____ is the collection of activities that transform inputs into output that customers value.

Organizational process

What are the two types of political risk that affect companies conducting global business?

Political uncertainty and policy uncertainty

The three stages of moral development identified by Kohlberg are _____.

Preconventional level, conventional level, and postconventional level

A(n) ______ resource is a resource that is not controlled or possessed by many competing firms.

Rare

transactional leaders _______.

Reward followers for a good behavior and punish followers for poor behavior

Which of the following is NOT one of the rules for effective brainstorming?

Select an open-minded group leader

Which of the following typically is NOT performed by top managers?

Setting objectives consistent with organizational goals or planning and implementing subunit strategies for achieving these objectives

An organization that rewards its team members through gainsharing is ______.

Sharing the financial value of performance gains

Which of the following statements about social responsibility and economic performance is true?

Social responsibility can sometimes create significant costs for a company

____ is the process of solving problems by consistently applying the same rules, procedures, and processes.

Standardization