test 1 management

1. Technological factors are part of this sector of the environment because they affect all businesses. a) Task b) Ethical c) Internal d) General

General

1. This type of divisional structure groups people and resources into units with diverse functions that serve customers in particular locations. a) Client division b) Product division c) Network division d) Geographic division

Geographic division

1. This term refers to the integration and interdependence of economic, technological, socio-cultural, and political systems across diverse geographic regions. a) Globalization b) Innovation c) Proliferation d) Competition

Globalization

1. In class we discussed a case in your textbook about changes in the Federal Bureau of Investigation after the terrorist attacks on September 11 2001. Specifically, the case described: a) how the FBI and CIA continue to operate as unrelated units. b) The executive team's efforts to decentralize the FBI's structure. c) The emergence of criminal prosecutions as the FBI's first priority. d) How the FBI's structure changed to align with new strategic priorities.

How the FBI's structure changed to align with new strategic priorities.

1. Which of the following questions is MOST important to the development of a firm's strategy? a) What is the purpose of this firm? b) Which stakeholder groups are important to the firm? c) How will the firm distinguish itself from its competitors? d) What impact will environmental forces have on the firm's business?

How will the firm distinguish itself from its competitors?

1. A key benefit of task-oriented leadership style is________. a) Employee satisfaction b) Improved performance c) Greater creativity d) Deeper commitment

Improved performance

1. Inertia refers to the: a) Planning of change efforts through top-down directives. b) Inability of organizations to change as rapidly as their environment. c) Process by which change emerges from individuals as they innovate. d) Ability to send massive amounts of data in increasingly unique formats.

Inability of organizations to change as rapidly as their environment.

1. _______ change is evolutionary; _______ change is revolutionary. a) Organic; planned b) Proactive; reactive c) Long-term; short-term d) Incremental; transformative

Incremental; transformative

1. Which of the following is an intrinsic reward? a) Incentives b) Interesting work c) Above-market pay d) Employee benefits

Interesting work

1. Corporate culture is part of an organization's ________ environment. a) Task b) General c) Economic d) Internal

Internal

1. This perspective in the balanced scorecard focuses on the day-to-day activities that are most critical for delivering products and services to customers. a) Financial b) Internal business process c) Customer d) Learning and growth

Internal business process

1. A functional structure: a) groups diverse functions into separate divisions. b) Is organized around the activities to be performed c) Gives joint authority to functional and divisional managers d) Categorizes employees based on their performance and commitment.

Is organized around the activities to be performed

1. Which of the following is a direct benefit derived from corporate social responsibility (CSR)? a) It enables a company to build its brand value b) It brings more foreign direct investment c) It directly affects a firm's bond rating d) It increases work force productivity.

It enables a company to build its brand value

1. This process produces job descriptions and defines the characteristics of ideal job candidates. a) Performance appraisal b) Needs assessment c) Balanced scorecard d) Job analysis

Job analysis

1. Which of the following is an extrinsic reward? a) Challenging work b) Self-direction c) Job security d) Autonomy

Job security

1. Which statement best describes the role of leadership in organizations? a) Leadership focuses on planning and budgeting b) Leadership involves staffing and controlling resources c) Leadership is the ability to drive change through motivation d) Leadership is the act of working with people to achieve a desired goal

Leadership is the ability to drive change through motivation

1. Employee satisfaction, productivity, and retention are all examples of measures used for this perspective in the balanced scorecard. a) Financial b) Internal business process c) Customer d) Learning and growth

Learning and growth

1. This process outlines specific performance milestones that employees are expected to meet within a defined time period. a) Balanced scorecard b) Needs assessment c) Management by Objective d) Realistic job preview

Management by Objective

1. In this type of structure, functional and divisional managers have equal authority in the organization. a) Matrix b) Centralized c) Diversified d) Single-product

Matrix

1. In the performance management control cycle, this activity allows firms to see whether employee behaviours and outputs met desired standards and objectives. a) Measurement b) Benchmarking c) Job analysis d) Downsizing

Measurement

1. Virtue ethics claims that: a) A virtuous organization is always a successful one. b) An organization morality is defined by its stakeholders. c) Morality's primary function is to develop virtuous character. d) Profitability is the fundamental virtue for every organization.

Morality's primary function is to develop virtuous character

1. These strategies emphasize responsiveness and sensitivity to local/national needs and tastes. a) Global b) International c) Multinational d) Transnational

Multinational

1. This kind of change emerges from on-going efforts of individuals or teams to innovate, solve problems, or seek more effective ways to get their work done. a) Organic b) Planned c) Disruptive d) Transformative

Organic

1. This refers to the pattern of organizational roles, relationships, and procedures that coordinate activities among employees. a) Synergy b) Value chain c) Organizational culture d) Organizational structure

Organizational structure

1. This process defines measures, sets targets, monitors and assesses how well tasks are accomplished, and takes corrective action as needed. a) Organic change b) Job analysis c) Performance management d) Transformative change

Performance management

1. The top management team at Acme Corp. initiated several structural changes to clarify reporting responsibilities and enhance operational efficiency. This scenario best describes what type of change? a) Reactive b) Planned c) Organic d) Transformative

Planned

1. Clearly articulated company rules that are enforced consistently and impartially are likely to enhance employees' perceptions of what type of justice? a) Punitive b) Procedural c) Distributive d) Conditional

Procedural

1. The management at MaxiMize Inc. noticed that employee turnover was rising and performance was declining. Further investigation revealed that they were losing employees to their main competitor due to that firm's more attractive compensation package. MaxiMize adjusted their compensation system to retain good performers. This best illustrates which type of change? a) Transformative b) Incremental c) Proactive d) Reactive

Reactive

1. Providing job candidates with both positive and potentially negative aspects of a job for which they are applying is called: a) MBO b) Job description c) Needs assessment d) Realistic job preview

Realistic job preview

1. For pharmaceutical companies like Merck, which of the following is the best example of a primary activity in the value chain? a) Accounting b) Facility maintenance c) HR management d) Research and development

Research and development

1. This kind of team determines their own objectives and the methods by which to achieve them. a) Vertical b) Manager-led c) Self-directed d) Functional

Self-directed

1. Bureaucratic structures have all of the following characteristics EXCEPT: a) Self-regulating work teams b) Centralized decision making c) Clearly defines roles and responsibilities d) Close supervision of employees by managers

Self-regulating work teams

1. This is the process through which an organization's newcomers learn how work gets done and how members should interact. a) Socialization b) Integration c) Commitment d) Adaptation

Socialization

1. This business framework attempts to organize and analyse multiple groups that interact with the firm. a) Stakeholder b) Contingent c) Shareholder d) Managerial

Stakeholder

1. A baseball team conducting a SWOT analysis notes that most of its players are among the best in the world, and that their manager was a distinguished major league player. This information relates most closely to which part of the SWOT analysis? a) Strengths b) Weaknesses c) Opportunities d) Threats

Strengths

1. After a firm has reduced the size of its workforce through downsizing, the remaining employees may become risk-averse and resentful of management. This condition is known as: a) Inertia b) Reactive change c) Survivor syndrome d) Dissatisfaction

Survivor syndrome

1. Which statement best describes a team in the storming stage of development? a) Team members disperse after completing the team's task. b) Team members get to know their tasks, responsibilities, and each member's competencies. c) Team members share their personal opinions and are more open to each other's ideas and suggestions. d) Team members argue with each other over interpersonal issues arising from members' different perspective.

Team members argue with each other over interpersonal issues arising from members' different perspective.

1. A front-line supervisor is likely to rely most on which of the following skills? a) Conceptual b) Forecasting c) Technical d) Visionary

Technical

1. Which of the following best describes the shareholder view on the purpose of business? a) The job of top managers is to design an organization's structure based on fit between various aspects of its environment. b) The job of top managers is to produce the highest possible stock market valuation of the firm's assets. c) The job of top managers is to oversee the conversion of raw materials into products to sell to customers. d) The job of top managers is to organize and analyse multiple groups that interact with the firm.

The job of top managers is to produce the highest possible stock market valuation of the firm's assets.

1. WorkRite manufactures and sells office furniture. It has a strong brand and strong capital resources. They acquired a failing food processing business in order to tap into that firm's market. Which type of diversification is WorkRite pursuing? a) Related b) Unrelated c) Single-product d) International

Unrelated

1. According to ______ , behaviours are moral if they produce the greatest good for the greatest number of people. a) Kantianism b) Consumerism c) Utilitarianism d) Totalitarianism

Utilitarianism

1. This analysis separates a firm into its various activities so that managers better understand total costs in the system and potential sources of differentiation. a) Trend b) Value chain c) SWOT d) Stakeholder

Value chain

1. This occurs when a corporation owns business units that make inputs for other business units in the same corporation. a) Franchising b) Globalization c) Vertical integration d) International diversification

Vertical integration

1. Which of the following best describes an individual with referent power? a) Vivian is well like and respected for her outgoing personality, sense of humour, and intelligence. b) Susan motivates her team members by awarding bonuses for improved performances. c) As the head of finance, Jack has decision authority over many of the firm's activities. d) Henry is known for taking disciplinary action against employees who arrive late to work.

Vivian is well like and respected for her outgoing personality, sense of humour, and intelligence.

1. Centralization addresses which of the following questions? a) Who does what? b) Who reports to whom? c) Who gets promoted into which positions? d) Where does most decision-making happen?

Where does most decision-making happen?

1. Fiedler's contingency theory of leadership suggests that a leader's effectiveness depends on certain situational features. These features include all of the following EXSCEPT: a) The degree of authority s/he has to administer rewards and punishment based on performance. b) Whether standard procedures for completing the task are in place. c) The quality of her/his relationships with followers. d) Whether s/he is able to make optimal decisions.

Whether s/he is able to make optimal decisions.

1. Which of the following questions does division of labor address? a) Who does what? b) Who reports to whom? c) Who gets promoted into which positions? d) Where does most decision-making happen?

Who does what?

1. The ultimate goal of corporate-level strategy is to build: a) employee commitment b) customer relationships c) a corporate advantage d) a wholly-owned subsidiary

a corporate advantage

1. Wal-mart's ability to buy products from its suppliers at rock-bottom prices best exemplifies _________ . a) threat of substitutes b) bargaining power of suppliers c) bargaining power of costumers d) rivalry among existing competitors.

bargaining power of costumers

1. A firm's task environment includes: a) competitors, suppliers, and costumers. b) Economic and socio-cultural factors. c) Owners and the board of directors d) Employees and corporate culture.

competitors, suppliers, and costumers.

1. A network of unique activities that fit together strategically and are difficult to replicate are known as: a) international strategies b) core competencies c) globalization d) virtue ethics

core competencies

1. An integrative negotiation process: a) focuses on a single issue b) takes a "win-lose" approach c) creates value for both parties d) creates a lack of interpersonal trust.

creates value for both parties

1. Transnational strategies focus on: a) efficiency, local responsiveness, and organizational learning. b) Being responsive and sensitive to local needs and tastes. c) How a company will compete in a given business. d) Providing a standardized product to all markets.

efficiency, local responsiveness, and organizational learning.

1. The most important skill(s) for a middle manager is/are: a) technical skills to earn credibility in her/his team b) setting vision and objectives for the organization c) conceptual skills for developing the organization's strategy d) interpersonal skills such as motivating and developing teams

interpersonal skills such as motivating and developing teams

1. Juan received two proposed projects from two major clients. His team is not big enough to handle both projects at the same time, and he must choose quickly between the two. Based on a gut feeling that his team might find one of the projects more attractive, he selected that project. This illustrates: a) reciprocity b) joint dependence c) bounded rationality d) intuitive decision making

intuitive decision making

1. One benefit provided by an effective mission statement is that: a) it defines the purpose of the company b) it outlines the history of the organization c) it communicates the firm's rules and procedures d) it defines the different authority levels within the firm.

it defines the purpose of the company

1. The standards people use to judge right and wrong, good and evil are referred to as: a) ethics b) morality c) whistleblowing d) social responsibility.

morality

1. The use of power and influence tends to increase when important resources such as money and staff become: a) more scarce b) more available c) less interdependent d) unrelated to each other

more scarce

1. When a company outsources one of its business activities to a contractor in a foreign country, this is called: a) offshoring b) delegation c) customizing d) downsizing

offshoring

1. The shareholders of St. Arbuck's Coffee elected Jane and Henry to be responsible for directing and overseeing the firm's management. In other words, Jane and Henry are: a) owners b) employees c) institutional shareholders d) on the board of directors

on the board of directors

1. The end result of a successful socialization process is: a) inertia b) dissatisfaction c) survivor syndrome d) organizational commitment

organizational commitment

1. The management of an automobile manufacturing company signed an agreement with a staffing form to provide recruitment services. The auto manufacturer had previously performed the recruiting function itself. But management believed that the staffing firm could provide better service. In other words, management has chosen to engage in: a) exporting b) licensing c) franchising d) outsourcing

outsourcing

1. In Virginia, two agencies were recently combined to create the Department for Aging and Rehabilitative Services. Anticipating this restructuring, the executive director of a non-profit agency serving people with disabilities initiated relationships with non-profit agencies serving senior citizens. This best illustrates: a) reactive change b) disruptive change c) proactive change d) incremental change

proactive change

1. As we discussed in class, the Disney enterprise has used its core competencies to create entertainment experiences through toys, films, theme parks, and cruises. This best illustrates: a) spot contracts b) support activities c) vertical integration d) related diversification

related diversification

1. In the "Merck and River Blindness" case assigned for homework, Dr. P. Roy Vagelos and his team ultimately decided to proceed with development of a human version of invermectin due to: a) sense of moral obligation b) legal pressures from the U.S FDA c) the clear economic benefit to Merck d) anticipated lawsuits from consumers.

sense of moral obligation

1. A pharmaceutical company funds a scientist's research on the firm's new cancer drug. Research results indicate that the new drug is less effective than most other cancer drugs on the market. The pharmaceutical company asks the scientist to reanalyse the data to find more favourable results, suggesting that the company will withdraw further research funding if the scientist does not find more favourable results. Which of the following situations is the scientist facing? a) A privacy violation. b) A conflict of interest c) A trade secret violation d) A bid rigging allegation

A conflict of interest

1. This tool helps firms identify measures of the most critical activities driving business success. It translates strategy into action by linking long-term goals with on-going operations. a) Strategic review process b) Value chain analysis c) Balanced scorecard d) Benchmarking

Balanced scorecard

1. One disadvantage of having a strong organizational culture is that: a) the organization needs more monitoring and supervision. b) A strong culture rarely influences a form's performance. c) A strong culture tends to be difficult to change. d) The organization's goals are not as clear.

A strong culture tends to be difficult to change.

1. Jane and Doris are co-workers and often argue over trivial issues. Jane insults Doris by making rude comments for no reason, and Doris threatens Jane in return. This best describes which type of conflict? a) Affective b) Cognitive c) Intergroup d) Task-related

Affective

1. The contingent view of management states that: a) Organizations must be understood as interdependent systems of human beings. b) An organization's structure must fit the characteristics of its external environment. c) Jobs must be designed for maximum efficiency using industrial engineering methods. d) Coordination of activities in organizations should take place through a strict hierarchy of authority.

An organization's structure must fit the characteristics of its external environment.

1. Programmed decisions: a) Require the use of heuristics and intuitive judgement. b) Are highly susceptible to social and political influences. c) Are made in response to recurring organizational problems. d) Require novel responses to unique or poorly defined situations.

Are made in response to recurring organizational problems.

1. Stories about founders, rites of passage, use of special terms or slang, and workplace furnishings can all express an organization's culture. Such indicators are called: a) Assumptions b) Beliefs c) Artifacts d) Values

Artifacts

1. After evaluating the firm's available resources, North Park Sports formulated a strategy for offering their products at a lower cost than their competitors. This best illustrates which type of strategy? a) Corporate-level b) Transnational c) Business-level d) Global

Business-level

1. activity-based costing, return on equity, and return on assets are all examples of typical measures for which perspective in the balanced scorecard? a) Financial b) Internal business process c) Customer d) Learning and growth

Financial

1. Kelly is a marketing director with strong and persuasive communication skills. She is able to motivate employees to perform well beyond expectations, and her employees are extremely loyal to her. In other words, Kelly has the characteristics of what kind of leader. a) Transactional b) Task-oriented c) Bureaucratic d) Charismatic

Charismatic

1. A country can gain this type of advantage by specializing in producing goods for which they have the lowest opportunity cost of production. a) Ethical b) Political c) Regional d) Comparative

Comparative

1. In vertical integration, forward integration occurs when a firm: a) owns or controls its key inputs. b) Tries to achieve economies of scope c) Generates sustainable cost savings. d) Controls the customers for its main products.

Controls the customers for its main products.

1. A system of shared beliefs among an organization's members that defines how people think, feel, and behave is known as organizational: a) Culture b) Design c) Strategy d) Structure

Culture

1. Market share, customer satisfaction, and customer retention are typical measures used for which perspective in the balanced scorecard? a) Financial b) Internal business process c) Customer d) Learning and growth

Customer

1. According to reinforcement theory,, positive and negative reinforcement increase _______, and punishment and extinction reduce _______. a) Theory X; Theory Y b) Hygiene factors; motivators c) Effort-performance expectancy; valence d) Desirable behaviours; undesirable behaviours

Desirable behaviours; undesirable behaviours

1. Firms pursuing a differentiation strategy are attempting to: a) Be the lowest-cost producer for a particular level of product quality. b) Achieve efficient production and delivery of products. c) Develop products with unique characteristics. d) Expand the company to increase sales.

Develop products with unique characteristics

1. Atlantis, Inc. decides to extend its market into a neighbouring country. They soon experience problems with unskilled local labor, underdeveloped transportation systems, and unreliable communication networks. Atlantis apparently failed to focus on the ________ dimension of their external environment. a) Socio-cultural b) Economic c) Political d) Legal

Economic

1. This refer(s) to cost savings achieved when high-volume production enables a firm to reduce per-unit costs. a) Return on equity b) Bargaining power c) Economies of scale d) First-mover advantage

Economies of scale

1. Which approach is most likely to help organizations maintain a customer-focused culture? a) Acquire firms with cultures different from theirs. b) Publicity reprimand employees who provide poor service. c) Emphasize that every employee is responsible for customer issues. d) Encourage cautious decision making and discourage risk-taking.

Emphasize that every employee is responsible for customer issues.

1. Pushing decision making and implementation to the lowest possible level in an organization will increase the influence and autonomy of all employees. This best describes: a) Involvement b) Empowerment c) Commitment d) Relational power

Empowerment

1. Title VII of the Civil Rights Act of 1964 established: a) minimum conditions for health, safety, and general well-being in workplaces. b) Unpaid leaves of absence for employees due to family and medical reasons. c) Equal employment opportunity by defining illegal bases of discrimination. d) A federal minimum wage, overtime pay, and limits on child labour.

Equal employment opportunity by defining illegal bases of discrimination.

1. An organization's vision: a) Specifically defines the firm's core competencies. b) Describes the activities that the firm performs for its customers. c) Illustrates how a firm can align its resources to gain market share. d) Expresses what the firm hopes to achieve and how it plans to accomplish that.

Expresses what the firm hopes to achieve and how it plans to accomplish that.

1. When a firm's structure, systems, human resources, and management practices are well matched with its competitive landscape, the firm has achieved good: a) External fit b) Diversification c) Customization d) Vertical integration

External fit

1. Senior leaders of a corporation who are engaged in this activity meet with business unit managers to assess progress toward specific goals. a) Contingency planning b) Scenario building c) Scientific management d) The strategic review process.

The strategic review process.

1. Apple's founder Steve Jobs famously said, "People don't know what they want until I show them." This exemplifies Apple's commitment to being at the forefront of product innovation and best illustrates: a) first-mover advantage b) threat of substitutes c) economies of scale d) Barriers to entry

first-mover advantage

1. Core values and beliefs in an organization's culture are usually directly traceable to the: a) founders b) employees c) customers d) stockholders

founders

1. Successful change leaders: a) keep the reasons for change confidential b) maintain existing power bases and norms c) have a sense of humour about themselves and the situation d) focus attention on their own accomplishments as change progresses.

have a sense of humour about themselves and the situation

1. The EU, NAFTA, ASEAN, and MERCOSUR are all examples of: a) how regional integration has changed the external environment for business. b) International efforts to promote corporate social responsibility c) Political consolidation across national borders. d) Increasing trade barriers between countries.

how regional integration has changed the external environment for business.

1. The first step involved in benchmarking is: a) finding the best companies for each process b) identifying which processes to benchmark c) creating plans for improvement d) collecting and analysing data.

identifying which processes to benchmark

1. When organizations make small changes to their processes on a regular basis, this creates: a) transformative change b) reactive change c) disruptive change d) incremental change

incremental change

1. By designing and aligning human resource management practices to support each other and the firm's strategy, the form achieved good: a) matrix structure b) benchmarking c) strategic positioning d) internal fit

internal fit

1. Picking out the IT staff, clerical support staff, and accountants in the Class Act consulting firm was easy to do by looking at how they dressed and decorated their work areas, and by listening to the terminology they used among themselves. This shows that Class Act had: a) internal fit b) subcultures c) survivor syndrome d) organizational commitment

subcultures

1. Max-Out Products generated sustainable cost savings by combining duplicate functions and reassigning employees to under-staffed locations. In other words, Max-Out was able to create: a) synergy b) market power c) a value chain d) a barrier to entry

synergy

1. Jake is a corporate accountant with a manufacturing firm. During an annual review, he noticed discrepancies in the accounts. He then learned that top management had manipulated the accounts, and reported this activity to federal authorities. In this scenario, Jake engaged in: a) bribery b) bid rigging c) whistleblowing d) revealing trade secrets.

whistleblowing

1. Z-tech is a global company based in Germany. The firm has manufacturing plants in Poland and Hungary to supply those local markets, and Z-tech has complete control of these plants. In other words, Z-tech chose to use which of the following market entry strategies: a) wholly owned subsidiaries b) licensing c) joint ventures d) exporting

wholly owned subsidiaries