Principles of management exam #1

Matt has developed a mathematical model for the film distribution company that employs him. The model will help in determining release dates and the desirable number of screens for new movies. This model is an application of contingency management. administrative management. management science. behavioral science. scientific management.

management science.

Emma is a highly efficient manager. This implies that she: Multiple Choice does not favor flexibility in planning is slow to respond to change and perceives organizational change as harmful. minimizes the amount of input resources without compromising quality. spends lavishly on resources. works for longer hours than do most of her colleagues.

minimizes the amount of input resources without compromising quality.

Macon, feels that he constantly confronted with problems. He tries very hard to create alternative solutions and then evaluate them. He often implements the selected solution, but then another problem arises. He begins to express his frustrations by accusing employees of not fully executing the solution as described in his plan. What style of decision making does Macon use? Multiple Choice intuitive realistic nonrational satisficing rational

nonrational

a set of interrelated parts that function as a whole to achieve a common purchase

system

Automobile companies promote different car models in different countries depending on a range of factors such as demographics, local taste, local fuel costs, income levels, traffic congestion, and cultural values. This most likely demonstrates that: Multiple Choice the global market is less complex than national markets. the social norms in a country do not affect purchase decisions of consumers significant differences still exist among national markets. a company does not have to be the size of a multinational giant to facilitate, and benefit from, the globalization of markets. cultural diversity has been replaced by global uniformity.

the social norms in a country do not affect purchase decisions of consumers

One managerial implication of the justice model is that managers should base their decisions on: Multiple Choice the competitor's decision making strategies what provides maximum profits to the company arbitrary factors whatever promotes a fair distribution of outcomes the effects the decision can have on stakeholders' rights

whatever promotes a fair distribution of outcomes

Based on the Runaway Trolley scenario discussed in class, if you pull the lever to change tracks thereby killing one person but saving four lives, this means Multiple Choice you subscribe to the individual approach to deciding ethical dilemmas. you subscribe to the moral rights approach to deciding ethical dilemmas. you subscribe to the justice approach to deciding ethical dilemmas you subscribe to the utilitarian approach to deciding ethical dilemmas.

you subscribe to the utilitarian approach to deciding ethical dilemmas.

-guided by what will result in the individual's best long term interest, which ultimately are in everyone's self-interest

•Individual

-guided by what will result in the greatest good for the greatest number of people

•Utilitarian

Which of the following is an example of an external stakeholder for the department store chain Macy's? Multiple Choice A customer who purchases a mattress at Macy's. Owners of Macy's stock. A member of the Macy's board of directors. The CEO of Macy's. A sales associate at Macy's.

A customer who purchases a mattress at Macy's.

Which of the following is a form of trade protectionism? A countertrade A trade bloc An embargo Outsourcing A revenue tariff

An embargo

◦Relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers ◦The disciplines of behavioral science include psychology, sociology, anthropology, and economics

Behavioral science

◦emphasized the importance of understanding human behavior and of motivating employees toward achievement

Behavioral viewpoint

Which of the following is a method by which a company can act ethically toward employees and meet their expectations? Multiple Choice By selling customers quality products at a fair price and providing good after-sales service. By improving their products over time and providing guarantees to customers about the integrity of their products By creating an occupational structure that fairly and equitably rewards organizational members for their contributions By implementing a high power distance culture and discouraging decentralized decision making By maximizing the stockholders' return on investments

By creating an occupational structure that fairly and equitably rewards organizational members for their contributions

Which of the following forms the base of Carroll's global corporate social responsibility pyramid? Multiple Choice Moral responsibility Ethical responsibility Legal responsibility Philanthropic responsibility Economic responsibility

Economic responsibility

deciding which new projects or programs to initiate and to invest resources in.

Entrepreneur

standards of right and wrong that influence behavior

Ethics

◦symbolizing the organization's mission and what it is seeking to achieve.

Figurehead

•Making money (profits) by offering products or services.

For-profit organizations

proposed that workers "could be retooled like machines"

Frederick Winslow Taylor

◦the worldwide interdependence of resource flows, product markets, and business competition that characterize the new economy Four trends are important: 1.The Changing World Output and World Trade Picture 2.The Changing Foreign Direct Investment Picture 3.The Changing Nature of the Multinational Enterprise 4.The Changing World Order

Globalization

Which of the following is the result of globalization? Multiple Choice Globalization weakens cultural barriers and reduces dissimilarities between nations. Globalization hinders the flow of financial and resource capital between countries. Globalization decreases the interconnectedness of the world's markets and businesses. Globalization prevents the economic systems of different countries from merging with each other. Globalization decreases organizational efficiency and effectiveness.

Globalization weakens cultural barriers and reduces dissimilarities between nations.

◦employees worked harder if they received added attention, thought that managers cared about their welfare and that supervisors paid special attention to them Elton Mayo

Hawthorne effect

a French mining engineer, was a major contributor ◦Focused on the entire organization

Henri Fayol

Camille runs a consulting business that assists in the hiring process, using a team of psychologists to help companies to better understand their specific jobs and the type of employees that are best suited to fill them. Her business relies on the work of which behavioral theory pioneer? Multiple Choice Hugo Munsterberg Mary Parker Follett Douglas McGregor Frederick Taylor Elton Mayo

Hugo Munsterberg

◦father of industrial psychology

Hugo Munsterberg

◦Proposed that better human relations could increase worker productivity ◦Abraham Maslow and Douglas McGregor

Human relations movement

◦the ability to work well in cooperation with other people to get things done

Human skills

The Art Hub makes and sells paintings, sculptures, and small craft items. Its products meet consumer needs, but are often too expensive to buy. Which of the following is most likely to be true with regard to the company? Its product manager chooses inappropriate goals to pursue, but uses the resources wisely. Its product manager chooses the right goals to pursue and uses the resources wisely. It has a high level of effectiveness and low level of efficiency Its product manager chooses the wrong goals to pursue and uses the resources inadequately. It has a high level of efficiency and low level of effectiveness.

It has a high level of effectiveness and low level of efficiency

-guided by respect for impartial standards of fairness and equity

Justice

◦training, counseling, and mentoring high employee performance.

Leader

◦linking and coordinating the activities of people and groups both inside and outside the organization.

Liaison

Which of the following is a negative effect for the United States of global economic interdependency? More expensive products Lower standards of living Poorer quality goods Loss of well-paying jobs Decreased economic activity

Loss of well-paying jobs

Which of the following is a primary reason that companies expand internationally? Political expediency Higher tariffs More diverse employees Prevention of counterfeiting Lower labor costs

Lower labor costs

ØThe pursuit of organizational goals efficiently and effectively by ØIntegrating the work of people through ØPlanning, organizing, leading, and controlling the organization's resources

Management

◦Stresses the use of rational, science-based techniques and mathematical models to improve decision making and strategic planning

Management science

◦social worker and social philosopher

Mary Parker Follett

◦Focused on the entire organization ◦German Sociologist

Max Weber

◦analyzing information from both the internal and external environment.

Monitor

Issues like privacy, health and safety, and due process that are described as basic rights are typically tied to which of the following approaches to deciding ethical dilemmas? Multiple Choice Justice Utilitarian Liberty Moral rights Individual

Moral rights

-guided by respect for the fundamental rights of human beings

Moral-rights

•Aiding members in order to advance their interests (for example, political parties, farm cooperatives, labor unions, trade associations, clubs).

Mutual-benefit organizations

reaching agreements between other managers, unions, customers, or shareholders

Negotiator

•Offering services to some clients, not to make a profit (for example, hospitals, colleges, social-welfare agencies).

Nonprofit organizations

Over her years as a manager, Rose has had a very diverse group of employees; some were very interested in the financial rewards the company offered while others really would prefer extra time off or even to be recognized at the monthly department meetings. Rose should consider the ______ viewpoint of management in this case. Multiple Choice contingency classical variance management systems behavioral

contingency

you monitor performance, compare it with goals, and take corrective action as needed

controlling

refers to the system by which corporations are directed and controlled •The blank framework should protect shareholders rights. •The blank framework should ensure the equitable treatment of all shareholders. •Disclosure and transparency is critical. •The board of directors should be monitored and held accountable for what guidance it gives.

corporate governance

Kelly runs a growing business in Birmingham and wants to do more than lead a successful and law-abiding company. She intends to make a difference in her community by helping with issues like poverty and high unemployment. Kelly believes in Multiple Choice corporate social responsibility. corporate paternal accountability. the fair skies concept. corporate welfare. the corporate protection concept.

corporate social responsibility.

Recently, the Chinese government exchanged 212 railway trucks full of mango juice for a passenger jet from a Russian company. The Russian company is involved in Multiple Choice franchising. pseudo-exporting. countertrading. importing. outsourcing.

countertrading.

Customers lined up for hours to be among the first to purchase the new iPad. The excitement for the product would be considered ______ in the system. Multiple Choice a transformation process an input an output feedback affirmation

feedback

Management Levels?

first line, middle, top

the availability, production, and distribution of resources

Economic Forces

•Proposed "Fundamental Necessities" of Management. •Focused on the necessities that went beyond the task orientation

Charles Clinton Spaulding

◦Ability of 1 organization to outperform others ◦Produces desired goods/services more efficiently and effectively ◦4 Building Blocks ◦Responsiveness to Customers, Innovation, Efficiency, Quality Best companies manage to deliver on more than one pillar of advantage

Competitive Advantage

the ability to think analytically, to visualize an organization as a whole and understand how the parts work together

Conceptual skills

◦Emphasizes that a manager's approach should vary according to the individual and the environmental situation ◦Most practical because it addresses problems on a case-by-case basis ◦Effective management styles and organizational structures are influenced by various aspects of the environment: the contingency factors ◦Situational based determinants drive effectiveness

Contingency viewpoint

Aziz immediately halted production at his facility after seeing a report indicating the last batch had a high level of product defects, and restarted work only when the problem was discovered and fixed. Aziz is engaged in which management function? Multiple Choice Monitoring Executing Repairing Controlling Organizing

Controlling

Which of the following factors played an important role in speeding up globalization? Multiple Choice Declining barriers to trade and investment that eased the flow of capital throughout the world The rejection of the free-trade doctrine which increased global outsourcing The imposition of government-enforced import-tariffs that protected the domestic economy The fortification of trade and investment barriers between each country The export-restrictions which ensured that the people of a country had access to their own products

Declining barriers to trade and investment that eased the flow of capital throughout the world

Which of the following does planning involve in an organization? Multiple Choice Developing strategies for how to achieve high performance Measuring how well the organization has achieved its goals Establishing task relationships that allow people to work together Establishing accurate measuring and monitoring systems Motivating individuals to achieve organizational goals

Developing strategies for how to achieve high performance

◦transmitting information to influence the attitudes and behavior of employees.

Disseminator

◦managing an unexpected event or crisis.

Disturbance handler

__________ is the practice of a foreign company exporting products abroad at a lower price than the price in the home market or even below the costs of production in order to drive down the price of the domestic product. Multiple Choice Predatory selling Loss transaction Export crashing Alien advantage Dumping

Dumping

◦Focuses on managing the production and delivery of an organization's products or services more effectively ◦Work scheduling, production planning, facilities location and design ◦Example: Airline Catering

Operations management

◦influence of political and legal institutions

Political Forces

◦Application to management of quantitative techniques, such as statistics and computer simulations ◦Management science, operations management

Quantitative management

◦assigning resources between functions and divisions, setting the budgets of lower managers.

Resource allocator

The Sarbanes-Oxley Act of 2002 requires that a company's chief executive officer and chief financial officer must comply with which of the following? Hire a diversity officer. Hire an ethics officer. Open personal lines of credit. Set procedures and guidelines for the board of directors. Personally certify financial reports.

Set procedures and guidelines for the board of directors. Personally certify financial reports.

influence of culture that guides people and relationships

Social Forces

◦manager's duty to take actions that will benefit the interests of society as well as of the organization

Social responsibility

The American epidemic of obesity among U.S. youth is an example of which external force? Sociocultural Media Special interest Demographic Political-legal

Sociocultural

◦using information to positively influence the way people in and out of the organization respond to it.

Spokesperson

Owners Consist of all those who can claim the organization as their legal property Board of directors Members elected by the stockholders to see that the company is being run according o their interests Employees Consist of all those who work for the organization

Stakeholders Inside the Organization

◦Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs

Sustainability

Customers those who pay to use an organization's goods or services Competitors people or organizations that compete for customers or services Suppliers A person or organization that provides raw materials, services, equipment, labor or energy to other organizations Distributor a person or organization that helps another organization sell its goods and services to customers

Task Environment

◦ the job-specific knowledge needed to perform well in a specialized field

Technical skills

Demographic forces influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin Political-Legal forces changes in the way politics shape laws and laws shape the opportunities for and threats to an organization International Forces Subject of next Chapter

The General Environment

Economic forces consist of the general economic conditions and trends - unemployment, inflation, interest rates, economic growth - that may affect an organization's performance Technological forces new developments in methods for transforming resources into goods and services Sociocultural forces Influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization

The General Environment

Which of the following contributed to the lowering of barriers caused by distance and cultural differences? Multiple Choice The imposition of government-enforced tariffs on exports The development of communication and transportation technology The rejection of the free-trade doctrine The restrictions placed on the flow of capital between nations The imposition of government-enforced tariffs on imports

The development of communication and transportation technology

What benefits does the global environment offer organizations? Multiple Choice Organizations are faced with fewer challenges and risks when they grow to prominence internationally. The global environment is easy to operate within and is constant, straightforward, and predictable. Fluctuating sociocultural factors never affect the performance of organizations which function at a global level. The global environment provides organizations with several opportunities to increase efficacy and efficiency. Organizations that operate internationally seldom compete for scarce and valuable resources.

The global environment provides organizations with several opportunities to increase efficacy and efficiency.

is a conceptual framework for organizing knowledge and providing a blueprint for action

Theory

Amanda was a tough manager and made it a regular practice to check up on her staff, looking for cheating on timesheets and people coming back late from lunch. Her employees were often dissatisfied with Amanda since she was a(n) ________ manager. Multiple Choice soldiering Theory X operations administrative Hawthorne

Theory X

Despite your best intentions, it's hard to bring the best evidence to bear on your decisions. Why? Multiple Choice It will hurt diversity and synergy within your organization. It is too expensive; and it's not ethical and there's not enough good evidence. There's no competition, or there's too much competition. People are trying to mislead you; and the evidence will not allow MBO. There's too much evidence; and there's not enough good evidence and the side effects outweigh the cure.

There's too much evidence; and there's not enough good evidence and the side effects outweigh the cure.

In what way is the task environment similar to the general environment? They both contain challenges that are easily identified and anticipated. They both present managers with few opportunities and risks when operating at a global level. They are both forces that are easy to control and have little impact on organizational performance. They are both a set of geopolitical forces that are predictable and unchanging. They are both a set of forces and conditions that operate beyond an organization's boundaries.

They are both a set of forces and conditions that operate beyond an organization's boundaries.

Which of the following revelations from different research studies came to be known as the Hawthorne effect? Multiple Choice Workers' productivity being affected more by the attention received from researchers than by the work setting Employees in a "no-talking" workplace developing ways of talking to one another out of the sides of their mouths Group members subjecting those workers who violate the group norms to sanctions Workers concealing the true potential efficiency of a work system to protect their interests Productivity increasing, regardless of the level of illumination in the workplace

Workers' productivity being affected more by the attention received from researchers than by the work setting

David is an architect, and the steps he takes in designing and drawing commercial buildings would be considered which part of his organization's system? Multiple Choice an output an input feedback a transformation process an affirmation

a transformation process

Doreen, a project manager, has been given a limited amount of money to run the new marketing campaign. She was also told that the client wants the campaign ready to roll out in less than two weeks. Doreen is feeling very limited by these constraints and is not sure that it will produce her team's best work. Her supervisor and career mentor, tells Doreen that she is Multiple Choice feeling the effects of the intuition model. using rational decision making. affected by bounded rationality. being unrealistic with the time frames and money given to her. experiencing satisficing.

affected by bounded rationality.

Jack is working overseas, and has been asked by a superior to present a government official with a cash payment in order to secure a contract. This makes Jack uncomfortable since he does not feel it is right, yet he worries about upsetting his boss. Jack is facing Multiple Choice an ethical dilemma. sociocultural trends. a moral-rights approach by his boss. an idealistic situation. political-legal trends.

an ethical dilemma.

On GLOBE dimensions, the U.S. managerial sample scored high on Multiple Choice masculinity and humane orientation institutional collectivism and uncertainty avoidance assertiveness and performance orientation in-group collectivism and future orientation power distance and uncertainty avoidance

assertiveness and performance orientation

Craig is a highly effective manager. This implies that he: Multiple Choice disfavors employee empowerment. is likely to spend lavishly on resources. is overly ambitious. is highly compliant. chooses appropriate goals and then achieves them.

chooses appropriate goals and then achieves them.

Nora is a small-business owner who loves to take risks. She also enjoys going out and meeting customers and potential clients—the social aspect of her job. Nora relies on intuition and discussions with others to acquire information. As an interior decorator, Nora utilizes her imaginative strengths, taking a broad perspective to problem solving, and she likes to consider many options and future possibilities. Nora's decision-making style is best described as Multiple Choice conceptual. directive. analytical. ambiguous. behavioral.

conceptual.

Meredith is a seasoned American manager, currently working in Brazil. She has noticed that some of her management techniques work well in her overseas position, but sometimes she finds it more effective to defer to the practices of her Brazilian counterparts. Meredith can be described as a(n) ______ manager. Multiple Choice parochial geocentric ethnocentric expatriate polycentric

geocentric

you motivate, direct, and otherwise influence people to work hard to achieve the organizations goals

leading

A general manager at a department store is giving an important presentation to several departments to engage the whole staff in a new customer retention effort beginning this month. This is an example of Multiple Choice organizing. leading. marketing. controlling. planning.

leading.

In a(n) ______, shared meanings are primarily derived from written and spoken words rather than situational cues. Multiple Choice societal value system core values system high-context culture expatriate system low-context culture

low-context culture

One way to think of ______ is "the art of getting things done through people." Multiple Choice leadership motivation supervision management strategy

management

you arrange tasks, people and other resources to accomplish the work

organizing

When a manager at a software company is determining whether to hire more full-time programmers or possibly more temporary ones, he is engaged in Multiple Choice leading. controlling. planning. organizing. managing.

organizing.

When Ford was slow to recall vehicles to fix a possible carbon monoxide leak, it was most likely due to ________, because Ford was convinced that the modifications made by police departments were the cause of the problem, not the manufacturing of the vehicle. Multiple Choice escalation of commitment bias overconfidence bias sunk-cost bias framing bias hindsight bias

overconfidence bias

you set goals and decide how to achieve them

planning

Ethnocentrism among international managers has been linked to Multiple Choice poor-quality products from foreign subsidiaries. lower turnover among employees in foreign subsidiaries. recruitment difficulties for foreign subsidiaries. higher performance by foreign subsidiaries. fewer lawsuits over personnel policies within foreign subsidiaries.

recruitment difficulties for foreign subsidiaries.