Principles of Management Midterm Exam

T or F?: All managers have to pay attention to costs and according to research, the best way to improve organizational effectiveness is by severe cost cutting

F

T or F?: Antonio is head of the advertising department at Terrific Tortillas Inc. He can be described as a general manager

F

T or F?: Facilitating individual employee performance is an important role for top managers

F

T or F?: First line managers are the managers who have the responsibility for making the significant strategic policy decisions, often with staff managers assisting them in these decisions

F

T or F?: How an organization goes about accomplishing a plan is a key part of the management function of controlling

F

T or F?: In a monitor role, the manager trasmits current information to others, both outside and inside the organization.

F

T or F?: Only the top managers in organizations need conceptual skills since it involves planning.

F

T or F?: Recognizing the value of employees involves the organizing role of management.

F

T or F?: The ability to motivate others is considered a technical management skill

F

T or F?: The disturbance handler role involves the initiation of change, thinking about the future and how to get there

F

T or F?: The nature of management is to control and dictate others in an organization

F

T or F?: The use of influence to motivate employees to achieve the organization's goals refers to controlling

F

T or F?:Middle managers are responsible for setting organizational goals, defining strategies for achieving them, and making decisions that affect the entire organization

F

T or F?: A manager forwards information to other organization members in the disseminator role

T

T or F?: A manager's ability to work with and through other people and to work effectively as a group member is called human skills.

T

T or F?: Allocating resources across the organization is part of the organizing management function.

T

T or F?: Controlling involves monitoring employee's activities and taking corrective action as necessary.

T

T or F?: Efficiency can be calculated as the amount of resources used to produce a product or service

T

T or F?: In the figurehead role, the manager performs ceremonial and symbolic duties

T

T or F?: Juan, as a division manager, is generally concerned with the near future and is expected to establish good relationships with peers around the organization, encourage teamwork, and resolve conflicts. Juan can be described as a middle manager.

T

T or F?: Leading is the use of influence to motivate employees to achieve organizational goals

T

T or F?: Leading is the use of influence to motivate employees to achieve organizational goals.

T

T or F?: Manager least enjoy activities such as controlling subordinates and managing time pressures.

T

T or F?: Most top executives routinely work at least 12 hours a day and spend 50 percent or more of their time traveling

T

T or F?: One of the biggest mistakes during turbulent times is managers' failure to comprehend and adapt to the rapid pace of change in the world around them

T

T or F?: Technical skills are most important at lower organizational levels while conceptual skills become more important as managers move up the organizational hierarchy.

T

T or F?: The informational roles that managers perform include monitor, disseminator, and spokesperson.

T

T or F?: The ultimate responsibility of managers is to achieve high performance by balancing efficiency and effectiveness

T

T or F?: The ultimate responsibility of managers is to achieve high performance by balancing efficiency and effectiveness.

T

T or F?: To perform effectively, all managers must possess conceptual, human, and technical skills, though the degree of each skill necessary at different levels of an organization may vary

T

T or F?: To perform effectively, all managers must possess conceptual, human, and technical skills, though the degree of each skill necessary at different levels of an organization may vary.

T

T or F?:Becoming a successful manager means thinking in terms of building teams and networks, becoming a motivator and organizer within a highly interdependent system of people and work.

T

T or F?:Technical skills are most important at lower organizational levels while conceptual skills become more important as managers move up the organizational hierarchy.

T

T or F?:Technological advances have resulted in employees becoming more empowered

T

Kristen's Jewelry Shop has just hired a comparative shopper to visit other local jewelry stores to gain product pricing information. What strategy is this describing? a. boundary-spanning roles b. a flexible structure c. unfair practice d. increase planning and forecasting e. joint venture

a. boundary-spanning roles

The degree to which an organization achieves a stated goal refers to: a. effectiveness b. synergy c. conceptual skill d. efficiency e. human skill

a. effectiveness

Which of these is the use of influence to motivate employees to achieve organizational goals? a. leading b. controlling c. organizing d. planning e. staffing

a. leading

______ includes all elements existing outside the boundary of the organization that have the potential to affect the organization a. organizational environment b. internal environment c. task environment d. general environment e. technological environment

a. organizational environment

When senior managers at Gap, Inc. decided to become the number one service quality clothing company in the world, they were engaging in the management function of a. planning b. organizing c. leading d. controlling e. dreaming

a. planning

One of the important ideas in the text's definition of management is: a. the management functions of planning, organizing, leading, and controlling b. the attainment of societal goals c. effectiveness is more important than efficiency d. management is unique for profit organizations e. efficiency is more important than effectiveness

a. the management functions of planning, organizing, leading, and controlling

Which of the following are responsible for the entire organization? a. top managers b. middle managers c. first line managers d. controlling e. organizing managers

a. top managers

______ is an approach to boundary spanning which results from using sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant a. merger intelligence b. business intelligence c. competitive intelligence d. partnership intelligence e. environment intelligence

b. business intelligence

Stefan, a supermarket cashier, recently recieved an award for having the highest scan rate among all cashiers. This is an example of organizational: a. performance b. efficiency c. effectiveness d. structure e. goal-setting

b. efficiency

A government inspection has required your company to upgrade the safety equipment in the manufacturing process of ice creamery. What dimension of the external environment has influenced these upgrades? a. technological b. legal-political c. task d. sociocultural e. economic

b. legal-political

Selecting goals and ways to attain them refers to a. controlling b. planning c. organizing d. staffing e. leading

b. planning

Integrated computers, Inc. wants to compile a profile of the customer it will target in its next promotional mailing. What environment would this be found in? a. internal environment b. task environment c. work environment d. general environment e. none of these

b. task environment

Which of these is NOT a part of an organization's general environment? a. technological b. economic c. competitors d. legal-political e. sociocultural

c. competitors

James, a casino manager, defines and uses signals and symbols to influence corporate culture by communication central values to employees. As such, James can be described as which type of leader? a. egalitaian b. totalitarian c. cultural d. servant e. transitional

c. cultural

Which skill includes specialized knowledge and analytical ability? a. conceptual b. human c. technical d. controlling e. planning

c. technical

____ means that managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes. a. adaption b. risk c. uncertainty d. knowledge e. education

c. uncertainty

According to the text, what are the skills used by managers when performing the four functions of management? a. conceptual, interpersonal, and organizational b. functional, problem solving, and technical c. analytical, interpersonal, and financial d. conceptual, human, and technical e. communication, strategic, and innovative

d. conceptual, human, and technical

The general environment dimension that includes consumer purchasing power, the unemployment rate, and interest rate is called the a. legal-political dimension b. sociocultural dimension c. technological dimension d. economic dimension e. task dimension

d. economic dimension

All of these are part of an organizations task environment except _____ a. customers b. labor markets c. competitors d. employers e. suppliers

d. employers

When two or more organizations combine to become one, it is referred to as a. joint venture b. flexible structure c. merchandise structure d. merger e. inorganic venture

d. merger

Which of the following dimensions of the general environment includes all elements that occur naturally on earth? a. sociocultural b. technological c. economic dimension d. natural dimension e. environmental dimension

d. natural dimension

Robert, a top-level manager at an advertising agency, spends a significant part of his work day identifying goals for future organizational performance and deciding how to use resources to attain these goals. This involves which management function? a. controlling b. leading c. organizing d. planning e. delegating

d. planning

Scientific and technological advancements in a specific industry as well as in society at large are included in which general environment dimension? a. sociocultural dimension b. legal-political c. economic dimension d. technological dimension e. corporate culture dimension

d. technological dimension

conceptual, human, and technical skills are important to which managerial level? a. top managers b. middle managers c. first-line managers d. non managers e. all of these

e. all of these

monitoring activities and making corrections are part of a. organizing b. planning c. leading d. staffing e. controlling

e. controlling

______ plays a key role in creating an organizational climate that enables learning and innovative responses to threats from the external environment, challenging new opportunities, or organizational crises a. mission statement b. vision statement c. competitive intelligence d. employee training e. corporate culture

e. corporate culture

Without ________, no company can survive over the long run a. cost cutting b. outsourcing c. command and control approach d. total quality teamwork e. innovation

e. innovation

Which of the following is not a function of management? a. plan b. control. c. organize d. lead e. performance

e. performance

Regina, owner and operator of a small restaurant, believes that her most important task as manager is establishing goals for the restaurant and deciding what must be done to achieve them. This involves which aspect of what managers do? a. organizing b. motivating and communicating c. measuring d. developing people e. setting objectives

e. setting objectives

Which dimension of the general environment represents the demographic characteristics, norms, customs, and values of the population within which the organization operates? a. legal-political b. economic dimension c. technological dimension d. corporate culture dimension e. sociocultural dimension

e. sociocultural dimension

A contingency view argues that there is one best way to manage an organization.

false

A primary purpose of trade agreements is to increase the cost of goods by increasing the number of fees or tariffs associated with their manufacture and sale.

false

According to the USMCA, the United States must pay duties on all items that it ships to Mexico.

false

According to the classical model of decision making, managers' searches for alternatives are limited because of human, information, and resource constraints.

false

Business-level strategies include all of the major functions, including finance, research and development, marketing, and manufacturing.

false

Contingency theory suggests that managers are more successful if they learn the best way to manage and motivate their employees, and then apply this knowledge in a universally consistent way.

false

Cultural values in organizations are rarely observed but are rather deeply embedded to the extent that members are not consciously aware of them.

false

Culture can be defined as the ability to speak different languages.

false

Efficiency refers to the degree to which the organization achieves a stated objective.

false

Facilitating individual employee performance is an important role for top managers.

false

First-level managers have the responsibility for making the significant strategic policy decisions, often with staff managers assisting them in these decisions.

false

Goals must be set for every aspect of employee behavior for organizational performance to be effective.

false

How an organization goes about accomplishing a plan is a key part of the management function of controlling.

false

In the implementation stage, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals.

false

Individualism is popular in the highly organized society of today because it supports immediate self-gain.

false

José is head of the advertising department at Terrific Tortillas Inc. He can be described as a general manager.

false

Licensing means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies.

false

One concern over trade agreements is that they make it harder for U.S.-based companies to send jobs outside the United States.

false

Providing innovative solutions to customer needs is a goal that would be placed in the internal business process category on a strategy map.

false

Recognizing the value of employees involves the organizing role of management.

false

Small businesses, according to the Small Business Administration, employ more than 90% of the private workforce in the United States.

false

Step 1 in management by objectives is to review progress.

false

Strategic thinking is more important in for-profit businesses than in nonprofit organizations.

false

The devil's advocate technique is similar to brainstorming in that both techniques prevent individuals from challenging other group members' assumptions.

false

The essence of formulating strategy is choosing how the organization will conform to become like its key competitors in the industry.

false

The goal of the EU is to integrate the markets of France, England, Spain, and Russia.

false

The growth of AI and big data techniques has reduced the use of the classical approach.

false

The management science approach uses qualitative data in management decision making.

false

The most effective managers are consistent in using their own decision style rather than shifting among styles.

false

The primary emphasis of polycentric companies is on their home countries.

false

The scalar chain is a hypothetical chain that provides horizontal links between unionized workers in different departments in an organization.

false

The scientific management perspective refers to the management thinking and practice that emphasizes satisfaction of employees' basic needs as the key to increased worker productivity.

false

The systems thinking approach develops theories about human behavior based on scientific methods and study.

false

The term "top of the pyramid" refers to the more than 4 billion people who earn the least, as defined by per capita income.

false

The transnational strategy handles markets independently for each country.

false

The use of influence to motivate employees to achieve the organization's goals refers to controlling.

false

Threats are characteristics of the internal environment that may prevent the organization from achieving its strategic goals.

false

Top managers make the broad strategic plan and identify specific tactical plans.

false

Where the organization wants to be in the future and how to get there defines controlling.

false

A decision is a choice made from available alternatives.

true

A glocalization strategy seeks to achieve both global integration and national responsiveness.

true

A key benefit of management by objectives is that it aligns individual and departmental goals with company goals.

true

A multinational corporation is managed as an integrated worldwide business system in which foreign affiliates act in close alliance and cooperation with one another.

true

AI is having its greatest effect on the boring, routine, mechanical, and administrative work of organizations.

true

An attractive innovation for entrepreneurs who want to start a business from scratch is to join a business incubator.

true

An ethical dilemma arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.

true

An organization's mission describes its reason for existence.

true

Borrowing from family and friends is a common source of debt financing for a start-up business.

true

Communication is one of the most important methods for effective strategy execution.

true

Countries that signed the GATT shortly after World War II are now members of the WTO.

true

Current employees, management, and especially corporate culture are part of an organization's internal environment.

true

Direct investing means that the company is involved in managing the productive assets, which distinguishes it from other entry strategies that permit less managerial control.

true

Discerning circles of causality is an important element of systems thinking.

true

Diversification is a strategy of moving into new lines of business.

true

Entrepreneurs in the optimizer category are rewarded by the personal satisfaction of being business owners.

true

Ethical responsibility includes behaviors that are not necessarily codified into law and may not serve the corporation's direct economic interests.

true

Feedback is the part of monitoring that assesses whether a new decision needs to made.

true

If Laylah, a manager at Leak Free Roofing, wanted to develop a contingency plan for Leak Free, she would need to look at factors such as new equipment, the economy, and the company workers' compensation cases.

true

In a high-performance culture, organizations put high emphasis on both culture and solid business performance as drivers of organizational success.

true

In strategy implementation, leadership is the ability to influence people to adopt the new behaviors needed.

true

Individuals, at the preconventional level, are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences.

true

Justifying past decisions is a common bias of managers.

true

Large international firms typically are called multinational corporations.

true

Managers least enjoy activities such as controlling subordinates and managing time pressures.

true

Managers use conceptual, human, and technical skills to perform the four management functions of planning, organizing, leading, and controlling in all organizations.

true

Managers who are essentially ethical individuals make up the first pillar of an ethical organization.

true

More organizations are performing boundary spanning because environmental shifts can happen quickly.

true

Nonprofit organizations must pay close attention to the environment.

true

Normative decision theory recognizes that managers have only limited time and cognitive ability and therefore their decisions are characterized by bounded rationality.

true

Operational planning specifies plans for department managers, supervisors, and individual employees.

true

Physical symbols are associated with the surface level of organizational culture.

true

Political forces are aspects of a culture that guide and influence relationships among people.

true

Prevention and preparation are the two stages of crisis management.

true

Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff.

true

Scientific management evolved with the use of precise procedures in place of tradition and rules of thumb.

true

Strategic plans and goals are those that focus on where the organization wants to be in the future and pertain to the organization as a whole.

true

Technical skills are most important at lower organizational levels, while conceptual skills become more important as managers move up the organizational hierarchy.

true

The WTO was proposed during the Uruguay Round of the GATT.

true

The approach that managers use to make decisions usually falls into one of three types—the classical model, the administrative model, and the political model.

true

The best alternative is the one in which the solution best fits the overall goals and values of the organization and achieves the desired results using the fewest resources.

true

The disclosure by an employee of illegal, immoral, or illegitimate practices by the organization is called whistle-blowing.

true

The dog, according to the BCG matrix, is a poor performer.

true

The drawbacks of a sole proprietorship include unlimited liability and difficulty in obtaining financing.

true

The mission is the basis for the strategic level of goals and plans, which in turn shapes the tactical and operational levels.

true

The most common source of new business ideas comes from an in-depth understanding of an industry or profession.

true

The right of free consent, the right to privacy, and the right of freedom of conscience are rights that should be considered in the moral-rights approach.

true

The sociocultural dimension of the general environment includes societal norms and values.

true

Theory Y proposes that organizations can take advantage of the imagination and intellect of all of their employees.

true

There has long been a struggle within management to balance "the things of production" with "the humanity of production."

true

To succeed in the competitive online market, aspiring entrepreneurs need to identify a market niche that isn't being served by other companies.

true

Unrelated diversification occurs when an organization expands into a totally new line of business.

true

We might expect managers in nonprofit organizations to place more emphasis on the roles of spokesperson, leader, and resource allocator.

true

When a country has a humane orientation, its people are likely to care about helping others and being kind.

true

When the shop foreman receives and rewards valuable suggestions from workers, and this leads to continual improvement of production, synergy has occurred.

true