Principles of Management Test 1 Study Guide

What is the triple bottom line?

people, planet, profit

Kenji manages a company that collects fresh produce from farmers and distributes it to restaurants. His business is struggling, so he considers mixing some of the older or riper items into the boxes of newer produce. This will allow him to meet cost targets and keep the business going. Kenji is faced with an ethical dilemma. A. True B. False

A. True

Why do Companies Expand Internationally?

1. Availability of supplies 2. New markets 3. Lower labor costs 4. Access to financial capital 5. Avoidance of tariffs & import quotas

What is A trading bloc, also known as an economic community?

A group of nations within a geographical region that have agreed to remove trade barriers with one another.

How does a manager have a multiplier effect?

A manager's influence on the organization is multiplied far beyond the results that can be achieved by just one person acting alone.

If a company is using a ________, then more efficient workers earn higher wages. A. Differential rate system B. Monthly salary C. Quota stimulus D. Sliding wage scale E. Merit pay bonus

A. Differential rate system

Abraham Maslow's listing of physiological, safety, love, esteem, and self-actualization needs, and his belief that some of these needs must be satisfied before others, was proposed as the... A. Hierarchy of human needs. B. Theory Y C. Theory X. D. Hierarchy of human psychology. E. Development process approach.

A. Hierarchy of human needs.

The Pearsons decided to beautify their home by investing in a professional interior design. In the process, they dealt with employees from various departments of the design company, including a sales representative, a designer, the individuals who oversaw and did the work, and the office and billing personnel. From the systems perspective, the people required to provide the interior design services are considered A. Inputs. B. Transformational processes. C. Structure. D. Outputs. E. Feedback.

A. Inputs.

In their ________ roles, managers interact with people inside their work units; while solving problems is part of their ________ roles. A. Interpersonal; decisional B. Decisional; conceptual C. Interpersonal; technical D. Decisional; technical

A. Interpersonal; decisional

When the team executes the strategic plan, it is in which stage of development? A. Performing B. Forming C. Norming D. Storming E. Adjourning

A. Performing

Dominique and Isidora Wilson are wealthy entrepreneurs who are very interested in helping people who have been wrongly convicted of crimes. What philosophy would they choose to implement? A. Philanthropy B. Mentoring C. Corporate ethics D. Corporate sustainability

A. Philanthropy

Even though Sanjay faced multiple career setbacks, he now has earned his college degree and launched three successful businesses. Sanjay has demonstrated A. Resilience. B. Meaningfulness. C. Teamwork. D. New media literacy.

A. Resilience.

When building a new hospital, the developer did not remove any trees, based on the belief that doing so could compromise the ability of future generations to meet their own needs. This is an example of managing for A. Sustainable development. B. Globalization. C. Social responsibility. D. Green values.

A. Sustainable development.

Hollie manages a skating rink where most of the employees are high school students. Hollie believes the employees are careless, apathetic, and spend too much time loafing. Hollie is a Theory X manager. A. True B. False

A. True

What are the four parts of a system?

Inputs, Transformational processes, Outputs, Feedback

What are the three types of managerial roles?

Interpersonal, Informational, Decisional

What are some examples of trading blocs?

NAFTA & USMCA, The EU, and The Trans-Pacific Partnership—11

What are the two types of systems?

Open and Closed

What are some examples of mutual-benefit organizations?

Unions, trade associations, clubs.

What is a social audit?

a systematic assessment of a company's performance in implementing socially responsible programs, often based on predefined goals

What is the thought process of polycentric managers?

"They know best."

What is the thought process of ethnocentric managers?

"We know best."

What is the thought process of geocentric managers?

"What's best is what's effective, regardless of origin."

What are human skills?

"Soft Skills," the ability to interact well with people

Rafael's team needed to make a few key decisions regarding their current project. To spark discussion, without hurting people's feelings, Rafael could implement programmed conflict in the form of devil's advocacy or the dialectic method. A. True B. False

A. True

What do mutual-benefit organizations do?

Advance the interest of their members (unions, trade associations, clubs, etc.).

What is organizing?

Arranging Tasks, People, Resources

At Kaira's Caribbean Cuisine, Kaira improves focuses on efficiency by A. Only hiring employees who come from the Caribbean. B. Advertising specials to use up food inventory that is nearing its expiration date. C. Closing the restaurant during lunch hours. D. Training her assistant manager to handle the restaurant's finances.

B. Advertising specials to use up food inventory that is nearing its expiration date.

In preparation for being an ethical worker, you can practice being an ethical consumer. Which suggestion would you follow if you were an ethical consumer? A. Double-bag all of your groceries. B. Buy Fair Trade goods. C. Buy store-branded items. D. Purchase cheaper products.

B. Buy Fair Trade goods.

An organization's external stakeholders include A. Local communities, distributors, employees, and the board of regents. B. Customers, suppliers, strategic allies, and financial institutions. C. Top managers, strategic allies, workplace investigators, and non-management employees. D. Employees, owners, suppliers, and the board of directors.

B. Customers, suppliers, strategic allies, and financial institutions.

Valentino is proud to work for a company with a strong ________ because he knows the organization supports ethical behavior. A. General environment B. Ethical climate C. Ethical dilemma D. Triple bottom line

B. Ethical climate

After studying many management approaches, the best perspective to take as a manager is A. The behavioral viewpoint. B. Evidence-based management. C. The contingency viewpoint. D. Scientific management. E. Total quality management.

B. Evidence-based management.

Paloma's firm is beginning operations in a foreign host country that requires at least 5% of managerial roles to be filled by workers from the host country. When Paloma hires 50% of managers from the host country, she is fulfilling the "make a profit" practice of corporate social responsibility. A. True B. False

B. False

Younger workers (those born after 1980) will make up more than half of the U.S. workforce by the end of this decade. Which of these recruiting strategies would be least effective in attracting younger workers? A. Demonstrate that current employees have work-life balance. B. Focus on how much the job pays. C. Offer meaningful work that aligns with the younger workers' personal values. D. Emphasize the company's socially responsible mission.

B. Focus on how much the job pays.

Although ________ are typically unwritten and seldom discussed openly, they have a powerful influence on group and organizational behavior. A. Standards B. Norms C. Conflicts D. Roles

B. Norms

For almost 20 years, Hank has been the top sales professional for Strickland Propane. He credits his success to following the first law of business, which is to A. Innovate or die. B. Take care of the customer. C. Get things done through people. D. Do things right.

B. Take care of the customer.

How to manage for globalization

Be ready for cultural differences

In order to manage for competitive advantage, organizations must stay ahead in which four areas?

Being responsive to customers, Innovation, Quality, and Efficiency

The term BRICS stands for the five major emerging economies of...

Brazil, Russia, India, China, and South Africa

After three months of boot camp, the group of new Marines had learned many skills and developed lifelong friendships. The final week of boot camp, called Marine Week, signaled that this group had reached the ________ stage, and would soon be moving onto their next assignments. A. Performing B. Norming C. Adjourning D. Storming E. Forming

C. Adjourning

Managers in a cosmetics factory have been having problems with employees starting cliques. To develop more of a team culture, the CEO suggested utilizing Mary Parker Follett's idea that companies should A. Increase diversity. B. Utilize time-motion studies. C. Operate as a community, with employees working in harmony. D. Implement a more rigid environment. E. Strive to cut costs and increase efficiency.

C. Operate as a community, with employees working in harmony.

In ________ teams, there is an expectation of increased productivity and quality of work life because employees are delegated greater authority and granted increased autonomy. A. Collaborative B. Virtual C. Self-managed D. Problem-solving

C. Self-managed

As the manager of Cut-Off Salon, LaVonne ensures the prices she charges exceed the cost of providing the services. She also switched the entire salon to carbon-neutral styling products. Which additional element of the triple bottom line should LaVonne consider? A. Financial B. Environmental C. Social D. Commercial

C. Social

To effectively run her company, Machi applies the ________, a management style the views her firm as an interdependent collection of departments, and as a single institution that interacts with suppliers, distributors, competitors, and customers. A. Human relations movement B. Quantitative management approach C. Systems viewpoint D. Behavioral science approach E. Contingency viewpoint

C. Systems viewpoint

Which of the following is most important for the team leader to encourage during the storming stage of group development? A. Completing the tasks B. Celebrating accomplishments C. Voicing of disagreements D. Socializing among members

C. Voicing of disagreements

When preparing for an interview, reading social media profiles or "About" pages on a company's website can help you understand... A. The company's products and services. B. How previous employees felt about working at a company. C. Who holds important leadership positions. D. Recent achievements made by the company. E. Whether sustainability is a key value.

C. Who holds important leadership positions.

Task Environment

Customers, Competitors, Suppliers, Distributors, Strategic Allies, Employee Organizations, Local Communities, Financial Institutions, Government Regulators, Special-Interest Groups

For a manager, building an effective team requires work, but the payoff is... A. More responsibilities for you and other managers. B. Employees who will work overtime, often without expecting to be paid for it. C. Good relationships with others in the company, especially your superiors. D. A stronger, better-performing work unit.

D. A stronger, better-performing work unit.

Which scholar developed the global corporate social responsibility pyramid? A. Paul Samuelson B. Laurence Kohlberg C. Mary Parker Follett D. Archie Carroll

D. Archie Carroll

By understanding the competency gaps that are generally perceived by employers, you should... A. Believe in personal control of destiny. B. Seek high levels of achievement. C. Share diverse experiences. D. Be motivated to learn.

D. Be motivated to learn.

When managing her oil and lube service, Sabrina engages in the controlling function when she: A. Decides to open a second location across town. B. Partners with a petroleum brand on advertising and other discounts. C. Helps the service technicians get motivated to provide excellent customer service. D. Develops a loyalty reward program because the number of repeat customers has been declining.

D. Develops a loyalty reward program because the number of repeat customers has been declining.

Ravi, a supervisor, is known by his managers to be sharp in his decisions and has a good track record of meeting his goals. Ravi is a(n) ________ manager. A. Mentoring B. Efficient C. Visionary D. Effective

D. Effective

A committee investigating the impacts of health care reform on the organization is an example of a(n)... A. Virtual team. B. Informal group. C. Peer-to-peer network. D. Formal group.

D. Formal group.

Basheer operates a business that smooths and finishes poured concrete floors, sidewalks, driveways, and pool decks. Basheer has been observing and timing each task undertaken by his workers because he would like to increase their efficiency. Basheer is engaging in ________ management. A. Contingency B. Systems C. Quantitative D. Scientific E. Administrative

D. Scientific

While setting up their corporation, Amadi and Amir implement a system of governing their organization so that the interests of corporate owners and other stakeholders are protected. Amadi and Amir have set up a A. TQM system. B. Code of ethics. C. Business plan. D. System of corporate governance.

D. System of corporate governance.

Kendall frequently spots issues that will affect both her team in Sacramento and their counterparts in San Bernardino. Kendall plays a ________ role by setting meetings with both teams so they can work openly and coordinate smoothly. A. Leadership B. Relationship C. Maintenance D. Task

D. Task

A(n) ________ could be a collection of five employees who are studying industry pay scales, with the goal of making recommendations for adjusting pay grades within their company. A. Association B. Group C. Union D. Team

D. Team

Understanding how artificial intelligence, big data, and collaborative computing will impact your organization is the challenge of managing for... A. Globalization. B. Effectiveness. C. Strategic alignment. D. Technological advances.

D. Technological advances.

Selecting your management approach based on the situation and the people involved is applying... A. The quantitative viewpoint. B. The behavioral science approach. C. Evidence-based management. D. The contingency viewpoint. E. Total quality management.

D. The contingency viewpoint.

Efficiency is ________, while effectiveness is ________. A. Setting goals; using resources wisely B. Achieving results; investing in technology C. Using resources wisely; leading by example D. Using resources wisely; achieving results

D. Using resources wisely; achieving results

Managing for sustainable development

Do things in a green way

Things to look out for when managing for technological advances

Ecommerce, Far-ranging electronic management, Data, The rise of artificial intelligence: more automation in the workforce, Organizational changes: shifts in structure, jobs, goals, and management, Knowledge management and collaborative computing

What are good managers concerned with trying to achieve?

Efficiency and effectiveness

Internal Stakeholders

Employees, Owners, Board of Directors

Examples of decisional managers

Entrepreneur, Disturbance Handler, Resource Allocator, and Negotiator

Examples of interpersonal managers

Figurehead, Leader, and Liaison

What do first-line managers do?

First-line managers make short-term decisions.

The Individual Approach

For Your Greatest Self-Interest Long Term, Which Will Help Others

The Utilitarian Approach

For the Greatest Good

What are the three types of organizations that have managers?

For-profit organizations, nonprofit organizations, mutual-benefit organizations.

What do functional managers do?

Functional managers are responsible for just one organizational activity.

What do general managers do?

General managers are responsible for several organizational activities, (in smaller organizations).

What qualities do managers have?

Managers are task-oriented, achievement-oriented, and people-oriented.

What are the SEVEN CHALLENGES TO BEING AN EXCEPTIONAL MANAGER?

Managing for competitive advantage, technological advances, inclusion and diversity, globalization, ethical standards, sustainable development, happiness and meaningfulness.

What do middle managers do?

Middle managers implement those decisions.

Examples of informational managers

Monitor, Disseminator, and Spokesperson

What is controlling?

Monitoring, Comparing to Goals, Corrective Action

What is leading?

Motivation, Directing and Influencing

What are the responsibilities of informational managers?

Receive and communicate information

MANAGING FOR HAPPINESS AND MEANINGFULNESS

Research shows that a sense of meaningfulness in your life is associated with better health, work and life satisfaction, and performance.

The Moral-Rights Approach

Respecting Fundamental Rights Shared by Everyone

Justice Approach

Respecting Impartial Standards of Fairness

What is planning?

Setting Goals and Plans to Achieve

What are the responsibilities of decisional managers?

Solve problems, find opportunities

What do team leaders do?

Team leaders facilitate team activities toward achieving a goal.

What are technical skills?

The ability to perform a specific job

What is management?

The art of getting things done through people.

Why are BRICS important?

They hold 40% of the world's population.

How to manage for inclusion and diversity

To maximize the contributions of employees diverse in gender, age, race, ethnicity, and sexual orientation.

What are the 4 levels of the Traditional Management Pyramid?

Top Managers, Middle Managers, First-line managers, Team leaders.

What do Top Managers do?

Top managers make long-term decisions.

What are the responsibilities of interpersonal managers?

Work, internally and externally to the organization.

What are The three principal organizations designed to facilitate international trade?

World Trade Organization, World Bank, and the International Monetary Fund

Managing for Ethical standards

don't do anything unethical

General Environment

economic, technological, sociocultural, demographic, political-legal, and international

Sarbanes-Oxley Act

established requirements for proper financial record keeping for public companies and established procedures and guidelines for audit committees

What are some Examples of cultural variations?

language, interpersonal space, communication, time orientation, religion, law and political stability

Functions of management

planning, organizing, leading, controlling

What are some Barriers to International Trade?

tariffs, import quotas, embargoes, and sanctions

What are conceptual skills?

•The ability to think analytically