Management 201 Midterm
In order for organizations to survive successfully, managers must create a customer-responsive organization.
TRUE
Under what approach do organizations exhibit little environmental sensitivity, and simply obey laws, rules and regulations?
legal approach
The ________ thinking style is characterized by a person's preference for using external data and facts and processing this information through rational, logical thinking to guide decisions and actions.
linear
In the decision-making process, after allocating weights to the decision criteria, the decision-maker must then ________.
list viable alternatives that could resolve the problem
Which of the following is a multinational corporation that tailors marketing strategies to the host country's unique characteristics?
multidomestic corporation
The World Trade Organization has ________ member countries and ________ observer governments.
155; 29
The World Trade Organization was formed in the year ________.
1995
Imagine that the town to which your office caters sees a sudden spurt in popularity. There has been a lot of construction activity in the area and a number of properties are being developed. The number of customers has increased, and so have your competitors. In this situation, what should you do to reduce environmental uncertainty?
Acquire or merge with one or more of your competitors
Which of the following statements is true of the findings of studies on race and ethnicity in the workplace?
African Americans generally do worse than Whites in decisions related to the workplace.
Which of the following reflects the way goals are set in an MBO program?
Apart from being used to ensure that employees are doing what they are supposed to be doing, goals are used as a motivating tool for employees.
Computer peripherals provider Ascent plans to enter a new market in another country. Which of the following represents a threat for Ascent?
Ascent will have to plan its entry carefully as the laws in the country do not favor foreign businesses.
________ is the extent to which a society encourages people to be tough, confrontational, and competitive rather than modest and tender.
Assertiveness
Which of the following is an example of a procedure?
Before going on a leave of absence, fill up the application form available on the company's online leave management system. All applications will be approved/rejected within two days by the employee's immediate supervisor.
When formal planning fails to lead to higher performance, which of the following is most likely to be the reason for the failure?
Constraints of the external environment.
________ measures the strength of a person's convictions.
Ego strength
A manager's job is all about personal achievement.
FALSE
A policy is an explicit statement that tells a manager what can or cannot be done.
FALSE
Environmental uncertainty looks at the number of components in an organization's environment and the extent of the knowledge that the organization has about those components.
FALSE
In order to develop an innovative organizational culture, managers must minimize ambiguity and uncertainty and discourage risk-taking.
FALSE
In strong organizational cultures, employees have little knowledge of company history or heroes, what is important is present performance.
FALSE
Managers using the strategic management process always achieve positive outcomes.
FALSE
One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.
FALSE
One reason people resist change in an organization is that their future has been set and cannot be changed.
FALSE
Only when a country's political/legal environment is unstable or revolutionary is it of concern to managers.
FALSE
Organizations that subscribe to workplace spirituality emphasize the importance of employees controlling their expressions and emotions.
FALSE
Planning helps managers eliminate uncertainty and insulates organizations from change.
FALSE
Sensitivity training refers to activities that help team members learn how each member thinks and works.
FALSE
Strategic goals focus exclusively on the financial performance of the organization.
FALSE
The GLOBE framework for assessing cultures is similar to Hofstede's framework, but measures fewer dimensions.
FALSE
The Organization for Economic Co-Operation and Development developed a global code of ethics.
FALSE
The first step in the strategic management process is analyzing the external environment.
FALSE
The process of exporting involves acquiring products made abroad and selling them domestically.
FALSE
John Doe is employed with the IT department in Abel and Associates, that provides financial consultancy services to several wealthy investors. He is approached by a shady investor who offers attractive incentives for stealing some sensitive information regarding the investment patterns of one of the clients of the company. Which of the following statements best reflects John's thoughts if he is at the preconventional level of moral development?
I am liable to be criminally prosecuted for my involvement in stealing the information.
________ is the degree to which people believe they control their own fate.
Locus of control
________ is a process of setting mutually-agreed upon goals and using those goals to evaluate employee performance.
Management by objectives
________ involves ensuring that work activities are completed efficiently and effectively by the people responsible for doing them.
Managing
Which of the following is an example of workplace discrimination in the form of exclusion?
Many women in finance claim they are assigned to marginal job roles or are given light workloads that don't lead to promotion.
The North American Free Trade Agreement includes ________.
Mexico, Canada, and the United States
The most outspoken advocate of the classical view of social responsibility is economist and Nobel laureate ________.
Milton Friedman
The ________ is a Paris-based international economic organization whose mission is to help its 30 member countries achieve sustainable economic growth and employment and raise the standard of living in member countries while maintaining financial stability in order to contribute to the development of the world economy.
Organization for Economic Cooperation and Development
________ strategies address declining performance through retrenchment and turnaround strategies.
Renewal
What can be said about a manager who believes that she worked hard and met the productivity goals of her organization despite unfavorable conditions?
She has an internal locus of control.
A(n) ________ attitude is characterized by parochialism.
ethnocentric
A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety.
TRUE
A realistic job preview during the selection process minimizes stress by reducing ambiguity over job expectations.
TRUE
A stability strategy is an organizational strategy in which an organization maintains the status quo.
TRUE
According to the concept of bounded rationality, managers make decisions rationally, but are limited by their ability to process information.
TRUE
At the conventional level of moral development, ethical decisions rely on maintaining expected standards and living up to the expectations of others.
TRUE
Changing structure includes any change in structural variables such as reporting relationships, coordination mechanisms, employee empowerment, or job redesign.
TRUE
Conditions of economic inequality illustrate how societal attitudes can constrain managers' decisions and actions.
TRUE
Figurehead, leader, and liaison are all interpersonal managerial roles according to Mintzberg.
TRUE
In the job setting, African Americans are found to receive lower job performance ratings, be paid less, and be promoted less frequently than their White counterparts.
TRUE
Managers need to understand cultural differences to make effective decisions in today's fast-moving world.
TRUE
Managers who want to get into a global market with minimal investment start with global sourcing.
TRUE
People may resist change based on habit.
TRUE
Short-term plans are those covering one year or less.
TRUE
Studies indicate that doing a good job planning and implementing those plans play a bigger part in high performance than does how much planning is done.
TRUE
Technical skills become less important as a manager moves into higher levels of management.
TRUE
The "calm waters" metaphor of change is consistent with Lewin's concept of unfreezing, changing, and refreezing.
TRUE
When a manager performs the controlling function of management, he must monitor and evaluate performance.
TRUE
When employees are evaluated only on outcomes, they may be pressured to do whatever is necessary to look good on the outcomes, and not be concerned with how they got those results.
TRUE
Within an organization, the single independent businesses that formulate their own competitive strategies are known as strategic business units.
TRUE
Bella Vista Clothing targets teenage girls with a range of affordable ready-to-wear clothing. The company is opening two new outlets, as sales have been excellent. Which of the following represents a strength for the company?
The company's in-house designers have a knack for identifying and popularizing fashion trends.
Which of the following statements regarding managers in today's world is accurate?
The single most important variable in employee productivity and loyalty is the quality of the relationship between employees and their direct supervisors.
How can managers increase the likelihood of making change happen successfully?
They should give individual employees a role in the change process.
________ are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization.
Top managers
Florance is a chain of flower shops in the Chicago area. The company recently acquired Knick-knacks, which owns three gift shops. Which of the following is most similar to this acquisition?
Toy World acquired Unicorn Children's Books and now retails both toys and books from co-branded outlets.
________ is a situation in which a decision maker cannot make reasonable probability estimates.
Uncertainty
________ is a measure of the degree to which people rely on social norms and procedures to alleviate the unpredictability of future events.
Uncertainty avoidance
________ represent basic convictions about what is right and wrong.
Values
Which of the following is one of the reasons why managers should plan?
When work activities are coordinated around plans, inefficiencies become obvious.
Grayson's has been in the publishing business for fifty years. In the past two years, the company has noticed that book sales have been tapering off, as more and more readers prefer formats they can read on e-readers or smartphones. Grayson's needs to analyze the changes in the environment so that it can change its business strategies and meet the needs of the new market. It commissions a market research firm to collect information about the recent changes in reading habits. Which of the following questions is the most irrelevant for this purpose?
Which format is more reader-friendly, e-books or traditional books?
Which of the following is an example of a standing plan?
a fire escape policy establishing practices to be followed in an emergency
Ang Li emigrated from Hong Kong to study business at the Tri-Valley University in California. However, he has found it rather hard to move up in his managerial career at his workplace especially when compared to how his fellow graduate from Tri-Valley, American-born Adam Watson, has managed to become the regional manager of sales in the company. This suggests the presence of ________ in Li's organization.
a glass ceiling
Which type of change might include a shift from a functional to a product structure?
a structural design change
Under what approach is the organization driven to look for ways to respect and preserve the earth and its natural resources?
activist approach
Which of the following is important in effectively implementing the chosen alternative in the decision-making process?
allowing those impacted by the outcome to participate in the process
An organization's mission states that it "is committed to reducing its environmental footprint"; but its facilities do not comply with statutory environmental regulations. This is an instance of how ________.
an organizations stated goals need not be its real goals
The ________ describes how decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.
anchoring effect
One of the hottest topics of your talk will be the North American Free Trade Agreement. One of the points that you will emphasize is that ________.
as of 2012, it is the second largest trade bloc in the world in terms of the combined gross domestic product of its members
Which of the following examples would be considered appropriate stereotyping?
asking someone from accounting to help with a budgeting problem
In an organization whose culture conveys a basic distrust of employees, managers are more likely to use a(n) ________ leadership style.
authoritarian
Which of the following factors is a sociocultural component of an organization's external environment?
behavior patterns
If Shana's company dropped its organizational structure based on country and reorganized into industry groups, it would best be considered a ________.
borderless organization
Transnational organizations are also known as ________.
borderless organizations
How can managers identify the ethically questionable applicants even before they became part of the workforce?
by asking the candidates to go through interviews, tests, and background checks
The ________ view of social responsibility holds that management's only social responsibility is to maximize profits.
classical
Well-written goals are ________.
clear as to a time frame
A ________ is a formal statement of an organization's primary values and the ethical rules it expects its employees to follow.
code of ethics
Functional-level strategy directly supports the ________.
competitive strategy
The period of time between the 1960s to 1970s focused on ________.
complying with laws and regulations through affirmative action policies and programs
Shelly, a technician, was particularly concerned about the changes. She had spent a number of years ingratiating herself with one of the doctors and, because of it, she had earned special privileges, such as taking extended lunches with her husband. Shelly's resistance to change came from her ________.
concern over personal loss
When Joe checks the amount of output that the employees have completed and the number of units that have been rejected, he is performing which of the following management functions?
controlling
The major value-creating capabilities of the organization are known as its ________.
core competencies
Amanda, a single parent, is looking for a new job. Considering that she has two school-going children, she is particularly keen on finding an employer who can provide her with alternative work arrangements such as flexible work hours and telecommuting. In terms of the decision-making process, these represent Amanda's ________.
decision criteria
Kiva Systems, manufacturer of robots used in flexible automation systems, demonstrates the power of ________ by "teaching" its robots to dispose of used cardboard and to assist in gift wrapping for e-commerce warehouse fulfillment.
design thinking
Organizing includes ________.
determining who does what tasks
Which of the following arguments on social responsibility states that pursuing social goals hurts a business's economic productivity?
dilution of purpose
Downs wants to formulate a plan that lays out general guidelines for his employees and leaves room for interpretation. Which of the following types of plans would best suit his requirement?
directional
Which of the following is NOT one of the six determinants that are relevant in deciding issue intensity?
discovery of the act
What type of discrimination is said to have occurred when certain actions taken by representatives of an organization deny equal opportunity to perform or unequal rewards for performance?
discriminatory practices or policies
Effectiveness is associated with ________.
doing the right things
If the components of an organization's environment change frequently, the organization is operating in a ________ environment.
dynamic
No matter which business Colleen decides to buy, she intends that each company be a strategic business unit. This means that ________.
each business will be independent and will have its own competitive strategies
Jeff is an employee with the accounting department at a major shipping service provider in Texas. Soon after he joined following his graduation, his company developed corporate programs to help improve self-confidence and qualifications of diverse employees so they could "fit in." During which period of time did Jeff start working for his employers?
early 1980s
The final step in the strategic management process allows an organization to understand the ________.
effectiveness of the strategies used
Groups made up of employees connected by some common dimension of diversity are known as ________.
employee resource groups
Which of the following factors has contributed to the decline in the number of years used to define short-term and long-term plans?
environmental uncertainty
Which of the following demographic characteristics reflects surface-level diversity?
ethnicity
An organization is in the process of goal setting. It has finished reviewing the organization's mission. What should it do next?
evaluate available resources
The final step in the decision-making process is to ________.
evaluate the outcome of the decision
The commitment concept says that plans should ________.
extend far enough to meet those commitments made when the plans were developed
The part Edwin likes the most is that the team seems to prefer getting their objective accomplished instead of wasting time, which indicates that the team is ________.
focused on ends rather than means
Which of the following arrangements involves the greatest commitment of resources and poses the greatest amount of risk?
foreign subsidiary
Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use the rights to their software, brand name, and software specifications in return for a lump sum payment. The firm is a service organization that plans to use the software to assist its customers. Their agreement is a(n) ________.
franchise agreement
A ________ economy is one in which resources are primarily owned and controlled by the private sector.
free market
According to Swedish researcher Goran Ekvall, which of the following is a characteristic found in an innovative culture?
freedom for employees to express opinions
Design thinking suggests that managers should look at problem identification collaboratively and integratively with the goal of ________.
gaining a deep understanding of the situation
Goals are different from plans because ________.
goals are desired outcomes, and plans describe how those outcomes will be accomplished
A ________ strategy is when an organization expands the number of markets served or the products offered.
growth
What are the three main types of corporate strategies?
growth, stability, and renewal
Which of the following managerial styles is traditionally considered to be masculine?
leading by example
If Max resists his impulse to okay the use of the uncertified material because of the need for increased earnings per share he ________.
has a strong ego strength
Moe Gaines's support of using the new uncertified material is an indication that he ________.
has a weak ego strength
After identifying a problem, the next step in the decision-making process is ________.
identifying decision criteria
Increased accountability of employees is typically caused by ________.
increased emphasis on organizational ethics
According to Mintzberg's managerial roles, the ________ roles are ones that involve people and other duties that are ceremonial and symbolic in nature.
interpersonal
A procedure ________.
is a series of sequential steps a manager uses to respond to a structured problem
According to the Society for Human Resource Management, diversity ________.
is often used to refer to differences based on ethnicity, gender, age, religion, disability, national origin, and sexual orientation
Technical skills include ________.
job specific knowledge needed to proficiently perform work tasks
Motivating subordinates is primarily associated with the management function of ________.
leading
Executives at Macromix have initiated a diversity skills training program to educate employees about the importance of diversity at the workplace. Which of the following should be the first step to be implemented in the program?
making employees aware of the assumptions and biases they may have
Kelly, a production supervisor, is responsible for 10 employees who assemble components into a finished product that is sold to distributors. Kelly reports to Ben, a production manager, who in turn reports to Dan, a general manager, who reports to McKenna, a vice president of operations. Recently, McKenna asked Dan to have a meeting with Kelly and Ben regarding some customer concerns in the production area. The focus of the meeting was to judge the validity of the customer concerns, and to develop a specific plan to address these concerns. Ben and Dan are ________.
middle managers
What type of discrimination usually involves jokes or negative stereotypes being perpetrated about fellow employees?
mockery and insults
Which of the following is an example of an informational role according to Mintzberg?
monitor
Which of the following would make Mary realize that the company has a strong culture?
most employees are aware of company history
The ________ thinking style is characterized by a preference for internal sources of information and processing this information with internal insights, feelings, and hunches to guide decisions and actions.
nonlinear
The ________ view of management is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives.
omnipotent
Which of the following represents the two views of managerial impact on the success or failure of the organization?
omnipotent and symbolic
A company whose managers focus on results, rather than how results are achieved, most likely possesses a high degree of ________.
outcome orientation
When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance, they are exhibiting the ________.
overconfidence bias
Which of the following is one of the elements of a management by objectives (MBO) program?
participative decision making
Organizational change is any alteration of ________.
people, structure, or technology
Which dimension of the organizational culture is workplace spirituality most closely related to?
people-orientation
Differences arising from which of the following factors becomes more important to people as they get to know each other?
personality
Today, the basic management functions include ________.
planning, organizing, leading, and controlling
Which of the following two dimensions of the Global Leadership and Organizational Behavior Effectiveness program fit directly with Hofstede's dimensions?
power distance and uncertainty avoidance
All of the following are aspects of intuition EXCEPT ________.
programmed decisions
An organization's financial, physical, human, and intangible assets are known as its ________.
resources
Which of the following is the last step in goal setting?
review results and whether goals are being met
The manager of an apparel store estimates how much to order for the current spring season based on last spring's sales figures. The store manager is operating under which of the following decision-making conditions?
risk
Michelle finds a company directive that specifically restricts her from taking certain actions. This is a(n) ________.
rule
Colin decided his people will benefit from ________, a method of changing behavior through unstructured group interaction.
sensitivity training
U.S. federal law does not prohibit discrimination against employees on the basis of ________.
sexual orientation
An organization's culture supports the belief that profits can be increased by cost cutting and that the company's best interests are served by achieving slow but steady increases in quarterly earnings. What is the nature of the programs that the organization's managers are likely to follow?
short-term
A ________ is an individual or organization who seeks out opportunities to improve society by using practical, innovative, and sustainable approaches.
social entrepreneur
Discrimination refers to ________.
someone acting out their prejudicial attitudes toward people who are the targets of their prejudice
Because of the good profits and a fear of growing too fast, you decide to keep Taco Rocket in the same business and do not change the menu. You hope to retain the same market share and return-on-investment record. This is considered a ________ strategy.
stability
When an organization continues serving the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations, it is following a ________ strategy.
stability
With all the changes occurring in the computer reseller market, you advise him to stay with his present course until the market calms down. You are recommending that Ariel use a ________ strategy.
stability
If the components in an organization's environment exhibit minimal change, such an environment is said to be ________.
stable
The area in which your office operates has been relatively stable in terms of land prices and demand. However, you have noticed that demand for housing in the area usually spikes in summer. Which of the following best describes your business environment?
stable and simple
An organization's ________ goals are official statements of what an organization says, and what it wants its stakeholders to believe its goals are.
stated
Robert Downs is in the process of setting up a small community newspaper in his home town of Corning, New York. As a first step, he sets the following goal for his company: "To be a champion for free speech and for the development of the community." This goal is to appear clearly on top of every page of the newspaper. The above goal constitutes the ________ goal of the company.
strategic
A company that decides to decentralize its sales procedures is managing ________ changes.
structural
If Kelly were to consider enhancing productivity by giving greater authority to other technicians and increasing formalization, she would be considering ________ changes.
structural
If the new agency director decided to remove layers in the agency and increase the span of managerial control, this would be considered changing the ________.
structural components
If the agency director decided to shift away from a functional to a product structure, this would be considered changing the ________.
structural design
Wendell interviews many middle-level managers and discovers that they share a different view of management. These individuals believe that external factors constrain managers' influence over outcomes. The mid-level managers have a(n) ________ view of management.
symbolic
When Michael manages the employees who produce the product, he is utilizing his ________.
technical skills
Katz proposed that managers need ________ skills.
technical, human, and conceptual
The installation of the new equipment at Fred Fryer's Donuts, Inc., is an example of ________.
technological change
Which of the following is NOT an internal force of change?
technology
The meaning of "glass" that is used in the term "glass ceiling" signifies ________.
that whatever is blocking the way for women to attain top management positions is not immediately apparent
A ________ helps employees whose personal lives suffer from a lack of planning to sort out their priorities.
time management program
Your university has tried to promote the establishment of shared values so that all members will understand its beliefs. The university has established ________ management.
values-based
Managers do an external analysis so that they know about ________.
what the competition is doing
In which of the following areas are consistent male-female differences observed?
work schedule preferences
Increasing the numbers of employed women and minorities forces managers to pay attention to what change factor?
workforce
The ways in which people in an organization are different from and similar to one another is known as ________.
workplace diversity