MGMT 371 Exam 1
If American Airlines were to eliminate drinks on its flights, outlining and following such a strategy would be the responsibility of the organizing function of management. True False
FALSE
Leading means setting an organization's goals and deciding how best to achieve them. True False
FALSE
23. Awarding funds or gifts to individuals is called philanthropic giving. True False
FALSE
58. McDonalds operates restaurants around the world in airports. The agreement between McDonalds and the airports is a(n) A. global sourcing agreement. B. strategic alliance. C. global business. D. exporting agreement. E. direct investment.
B
71. All of the following are basic approaches to social responsibility EXCEPT A. accommodative stance. B. defensive stance. C. reactive stance. D. proactive stance. E. obstructionist stance.
C
41. According to the concept of managerial ethics, which of the following is NOT considered an economic agent? A. Competitors B. Suppliers C. Unions D. Regulatory agencies E. Owners/stockholders
D
110. People from which of the following countries are in the category of uncertainty acceptance? A. United States B. Israel C. Austria D. Japan E. Germany
A
117. At the ____ level of management, conceptual skills are most important. A. top management B. operational employee C. middle management D. first-line supervisor E. intermediate
A
40. ____ is the least risky type of international business in which firms usually become involved. A. Importing/exporting B. Licensing C. Joint venture D. Global sourcing E. Direct investment
A
The fact that managers use four classes of resources or inputs to perform organizational processes suggests that management is A. resource-based. B. output-oriented. C. an inefficient process. D. a conversion process. E. not using its environment wisely.
A
59. The Coca-Cola Foundation awarded grants to communities for water conservation and community recycling. This is an example of which area of social responsibility? A. General social welfare B. The natural environment C. Organizational stakeholders D. The task environment E. The internal cultural environment
B
46. Which of the following is the MOST common approach to the management of ethics? A. Top management support B. A multipage book of organizational policies and procedures C. An unwritten code of ethics D. A written code of ethics and top management support E. government regulation
D
101. Competitive rivalry would be exemplified by A. strategic alliances. B. price wars. C. mergers. D. union strikes. E. All of these choices
B
102. ____ is the extent to which an organization and its members follow basic ethical and legal standards of behavior. A. Legal compliance B. Ethical compliance C. Evaluative compliance D. Philanthropic giving E. Rational compliance
B
106. Hunter sells security surveillance equipment to international airports. His job is to go to the prospective customer, examine the airport's current security, locate problem areas, and explain how his company's security surveillance system would eliminate these problems. Hunter is an example of a(n) A. intelligence agent. B. boundary spanner. C. strategic ally. D. regulator. E. buyer.
B
74. When KFC wanted to enter the Japanese market, it contacted Mitsubishi, one of Japan's largest poultry producers. Mitsubishi provided an understanding of Japanese culture and some of the financing, while KFC provided the rest of the financing and its franchising expertise. The activities of KFC and Mitsubishi took place in the ____ component of the task environment. A. sociocultural B. strategic partners C. suppliers D. competitors E. economic
B
90. The Environmental Protection Agency is the agency charged with enforcement of many of the environmental laws in the United States. This agency represents a form of A. indirect regulation. B. direct regulation. C. legislative mandate. D. government coercion. E. legislative intervention.
B
95. ____ is NOT one of the five competitive forces identified by Michael Porter as having an impact on the interaction between an organization and its environment. A. Power of suppliers B. Threat of increased regulation C. Competitive rivalry D. Power of buyers E. Threat of new entrants
B
Amy, Frank, Puz, and Tiaro started a Bible study group. They are engaged in A. starting a corporation. B. starting an organization. C. creating a managerial hierarchy. D. creating a bureaucracy. E. creating an organizational matrix.
B
The primary purpose of the management process is to A. develop organizational goals and make logical decisions. B. achieve organizational goals efficiently and effectively. C. ensure that all employees are working together effectively. D. organize the various functions in a logical manner. E. make sure things go as planned.
B
Juan has strong diagnostic skills. He is good at developing a big picture perspective. True False
FALSE
103. A French ministry has banned the word e-mail from official communication. Instead, the French words for quick and mail have been combined to form a new word. This is an official attempt to protect the French A. political-legal system. B. economic system. C. cultural environment. D. economic community. E. natural resources.
C
116. Which skills are most important for first-line managers? A. Human B. Conceptual C. Technical D. Functional E. Operational
C
118. Many business school professors extensively use the case method of teaching in which students are asked to solve various kinds of business-related problems. Which managerial skills are most likely to be improved by this teaching method? A. Diagnostic and interpersonal B. Conceptual and interpersonal C. Diagnostic and decision-making D. Technical and conceptual E. Technical and decision-making
C
120. Which kind of skill enables managers to take an overall view of how the parts of the organization interrelate and to think strategically? A. Interpersonal B. Technical C. Conceptual D. Time-management E. Diagnostic
C
32. When Kate Middleton started wearing pantyhose, sales in the UK increased 85%. That is an example of which environment? A. Task B. Political-legal C. Sociocultural D. Technological E. Economic
C
71. Which of the following statements is NOT characteristic of strategic alliances as an element of the task environment? A. Strategic alliances work together in joint ventures and other similar arrangements. B. Strategic alliances increase the risk of losing sensitive information. C. Strategic alliances increase organizational exposure to economic risk. D. Companies join strategic alliances to gain expertise that they may lack. E. Many companies in strategic alliances have multinational partners.
C
27. ____ is the set of values that helps its members understand what the organization considers important. A. Environmental uncertainty B. Organization structure C. Organization design D. Organization culture E. Environmental responsiveness
D
70. Which of the following is an activity associated with the management function of controlling? A. Setting a goal to increase sales 25 percent next quarter B. Arranging units in an organization according to function C. Reviewing yesterday's production reports D. Choosing between two alternative communication systems E. Deciding to buy ten new robots to weld auto bodies
D
74. In most organizations, the ____ level of management contains the largest number of managers. A. first-line supervision B. administrative management C. top management D. middle management E. production management
D
75. One of the primary challenges facing those who would like to enter a high-potential/high-growth economy is A. more infrastructure than can be used. B. a large upper class. C. a communist government. D. potential consumers are poor. E. None of these choices
D
77. For firms that do NOT want to take a proactive stance with respect to social responsibility, the next most responsible position in the eyes of proponents of social responsibility would be a(n) ____ stance. A. reactive B. obstructionist C. proactive D. accommodative E. defensive
D
83. The degree of ____ is the extent to which the organizational environment is relatively simple or complex. A. change B. uncertainty C. environmental turbulence D. homogeneity E. tangibility
D
89. Roberta has just hired two new employees to work in the quality control lab. She is now training them for their jobs. What managerial role is she playing here? A. Developer B. Entrepreneur C. Planner D. Leader E. Monitor
D
Administrative managers are concerned with creating and managing the systems that create an organization's products and services. True False
FALSE
10. The minority group that is expected to have the highest growth rate in terms of workplace representation in the next few years is Latinos. True False
TRUE
16. Culture is the foundation of the organization's internal environment. True False
TRUE
18. The highest degree of social responsibility that an organization can exhibit is referred to as the proactive stance. True False
TRUE
9. Magna International Inc., a Canadian company, offered to buy Opel, a German company, from GM. This is an example of direct investment. True False
TRUE
A cross country running team is an example of an organization. True False
TRUE
An organization is a group of people working together in a structured and coordinated fashion to achieve a set of goals. True False
TRUE
Jeanne's department has the lowest production cost because her people keep the scrap rate and direct labor costs low. From this information, we know her department is an efficient operation. True False
TRUE
121. Conceptual skills enable managers to A. take an overall view of how the parts of the organization interrelate and to think strategically. B. solve detailed problems for their subordinates. C. understand, interact with, and communicate effectively with others in the organization. D. correctly diagnose organizational problems. E. None of these choices
A
29. American Eagle is a regional airline that flies in the United States and Canada. It is an example of a(n) ____ business. A. international B. domestic C. multinational D. intercontinental E. global
A
30. Diversity is more generally used to refer to A. demographic differences among people within a culture. B. cultural differences in the various regions of the United States. C. psychographic differences among people, such as enjoying different hobbies. D. all geographic, psychographic, and demographic differences. E. differences in work ethics among people within an organization.
A
35. Which of the following statements can be used to explain the growth of international business? A. Many countries in Europe and Asia were devastated after World War II and had to be rebuilt. B. The postwar population boom decreased demand for products. C. Changes in cultural traditions made the rest of the world open to all of the products made in the United States. D. Infrastructures in Europe and Asia remained sound in spite of World War II. E. All of these choices
A
37. Which of the following events would NOT have a significant impact on an organization's general environment? A. A German firm develops an improved two-cycle automobile engine. B. The unemployment rate drops below 4 percent. C. An industry's labor union refuses to agree to a new contract. D. The mean age of the population shows a gradual increase. E. The Supreme Court supports rigid interpretation of antitrust laws.
A
66. Which of the following statements BEST reflects the relationship between management and leadership? A. Leadership is only one part of management. B. Management is only one part of leadership. C. Management and leadership are the same thing. D. Leadership and management are unrelated concepts. E. Both leadership and management are part of controlling.
A
67. Which of the following is NOT one of the arguments offered by those who oppose corporations habitually engaging in social responsibility programs? A. Based on their legal status, organizations are technically prohibited from such activities. B. Such activity detracts from the basic mission society has given business. C. Social responsibility programs have the potential to create substantial conflicts of interest. D. Business executives lack the expertise to make decisions about social programs. E. There is too much potential for the abuse of the power that corporations have already without adding to it.
A
72. Which of the following describes one of the reasons for the establishment of the European Union? A. Eliminate trade barriers between member countries B. Decrease tariffs on products from nonmember countries C. Enhance movement of capital and labor between nonmember nations D. Increase the usage of member labor pools by nonmembers E. Gradually eliminate imports from nonmember nations
A
87. Jill, a helicopter pilot in the Army, went on a training flight with Marine pilots who had never flown with a woman before. The Marines were visibly uncomfortable. Jill explained to them that even in the Army most of her flights were with men, and those men did not treat her differently. Jill demonstrated ____ in order to put the men at ease. A. a willingness to communicate B. diversity training C. cross-cultural training D. organization culture modification E. designing new organizational practices
A
108. Siemens is primarily an engineering company. Employees in the U.S. volunteer to run Siemens Science Day in schools and hospitals to get children excited about science. The passion for science is part of the informal organization dimension A. leadership. B. culture. C. ethical compliance. D. whistle-blowing. E. social compliance.
B
10. Procedural justice refers to people's perceptions of the fairness with which rewards and other valued outcomes are distributed within the organization. True False
FALSE
113. Top executives at BBT Corporation set the strategic direction for the firm at corporate headquarters. BBT's local managers are then informed of these strategies and given complete freedom to implement them. Which of the following management functions best describes the freedom provided local managers? A. Planning B. Organizing C. Decision making D. Leading E. Controlling
B
28. ____ is defined as the broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures. A. Diversity B. Multiculturalism C. Organization culture D. Global culture E. The cultural environment
B
36. Which of the following describes what has occurred in international business from 1960-2000? A. Although still increasing, international trade has grown at a slower rate since 1980. B. The volume of international trade increased more than 3000 percent. C. U.S. investment overseas has been on the decline for the past two decades. D. The majority of the world's largest firms are firms with headquarters inside the United States. E. All U.S. firms still earn the majority of their sales and profits in the United States.
B
43. The growth of multinational corporations has left little room for distinction. Any perceived competitive advantage is quickly copied. However, an area for competitive advantage remains in the level of ____ organizations attract, motivate, and retain. A. human resources B. talent C. ethnicity D. demographics E. pluralism
B
54. The norm of ____ means determining whether the act is consistent with what most people would see as fair. A. caring B. justice C. rights D. virtue E. utility
B
58. Which of the following statements about the cost argument for diversity is TRUE? A. Organizations that manage diversity and multiculturalism effectively are better able to attract qualified employees from women and minorities. B. A manager can reduce employee absenteeism and turnover by learning how to manage diversity and multiculturalism. C. Diversity and multiculturalism are accompanied by an increased pool of information. D. Organizations with diversity and multiculturalism are generally more creative and innovative than other organizations. E. Organizations with diversity and multiculturalism are better able to understand different market segments than are less diverse organizations.
B
78. The starting point for managing diversity in an organization is A. diversity training. B. organizational policies. C. federally sponsored affirmative action programs. D. selective recruitment. E. the development of supportive organization culture.
B
24. Which of the following statements does NOT describe a characteristic of an organization's external environment? A. It includes specific, identifiable organizations and factors of interest to the organization. B. It is composed of general and task components. C. The boundary between the organization and its environment is quite specific and clearly defined. D. It contains some nonspecific dimensions and forces that can affect organization activities E. It includes everything outside of the organization that might potentially affect it.
C
38. Advertising for Abercrombie and Fitch uses overt sexuality to sell clothes. Ads for Abercrombie, the pre-teen sizes, are only moderately less sexual and products include swim wear with padding in the chest. Many people object to this advertising. This is an example of the relationship of the A. employee to the firm. B. firm to the employee. C. firm to the environment. D. firm to competitors. E. employee to the environment.
C
45. In the U.S. Starbucks does not franchise. It has a(n) ____ agreement with Barnes and Noble. A. importing B. exporting C. strategic D. global sourcing E. direct investment
C
57. When an organization effectively manages diversity, absenteeism decreases, turnover is reduced, and productivity increases. These results are suggested by the ____ argument. A. resource acquisition B. systems flexibility C. cost D. marketing E. problem-solving
C
89. The ultimate test of an organization's commitment to managing diversity and multiculturalism is its A. organization chart. B. employee recruitment and selection process. C. organization culture. D. employee absenteeism and turnover. E. organization design.
C
90. An organization that has achieved high levels of diversity with few problems and that can capitalize on the advantages of being diverse is called a(n) ____ organization. A. global B. heterogeneous C. multicultural D. paternalistic E. ethnocentric
C
101. An example of a gap in organizational identification based on cultural identity would be A. women represented in all positions in the organization. B. minorities represented in all positions in the organization. C. women overcoming glass ceilings. D. Asians being stereotyped as great in math. E. advancement policies that are based on ability.
D
107. Many organizations now have units that monitor a host of magazines and newspapers looking for stories that may have an impact on the organization. These units are A. a form of management information system. B. engaged in boundary spanning. C. a type of organization control. D. engaged in environmental scanning. E. engaged in strategic planning.
D
13. The cost argument suggests that organizations with diverse workforces are generally more innovative than other organizations. True False
FALSE
109. Which of the following is an example of an organization's strategic response to its external environment? A. Negotiating a new contract with the union B. Hiring a new CEO C. Implementing new plant safety standards D. Doing nothing in response to a competitor's new product E. Modifying the organization's culture
D
117. One of the reasons so many Internet companies fail is due to a lack of standardized operating procedures. The companies' managements are afraid of stifling their creative employees by using a rigid structure with lots of rules and regulations. Instead employees are given few rules and allowed to use their own judgment when making decisions. What type of organization design would you find in most of these companies? A. Mechanistic B. Autocratic C. Bureaucratic D. Organic E. Formalized
D
122. Which of the following statements would NOT describe a direct influence response to the organization's environment? A. A power company sets up and advertises a safety watch program to help reduce crime in an inner-city neighborhood. B. An industry council hires a lobbyist to represent it in Washington, D.C. C. A firm develops new uses for its existing products. D. An organization restructures itself from a mechanistic to an organic design. E. A firm signs a long-term agreement with one of its suppliers.
D
131. Which of the following statements about management is TRUE? A. Management occurs solely among individuals at high levels in organizations. B. Management exists only in business firms. C. Management is relatively unimportant in not-for-profit organizations. D. Management exists in organized crime and street gangs . E. None of these choices
D
36. The state of Wisconsin took measures to limit the power of state employee unions. This is an example of the A. relationship of the employee to the environment. B. relationship of the employee to the firm. C. relationship of the firm to the employee. D. relationship of the firm to other economic agents. E. relationship of the firm to its competitors.
D
49. Some consumers are willing to pay thousands of dollars for plastic surgery in an attempt to gain an advantage over others. This is an example of the ____ dimension. A. internal B. political-legal C. task D. sociocultural E. economic
D
51. Debra Lee was COO at Black Entertainment Television before she became CEO. However, only 1% of black female executives reach top management. What are many of them experiencing? A. Limited promotion mentality B. Lack of organizational fit C. Lack of skills needed for advancement D. Glass ceiling E. Closed door policy
D
64. Judith Cruz, the executive director of the Treasure Coast Food Bank, had a logistics problem. She contacted Wal-Mart to ask for management advice. Members from Wal-Mart's distribution team arrived at the food bank, helping it improve its warehousing, sorting, and routing, to allow more food deliveries per week. The food bank went from serving 42,000 meals per week to more than 100,000 meals. The partnership negates the argument against social responsibility that says A. based on their legal status, organizations are technically prohibited from such activities. B. such activity detracts from the basic mission society has given business. C. social responsibility programs have the potential to create substantial conflicts of interest. D. business executives lack the expertise to make decisions about social programs. E. there is too much potential for the abuse of the power that corporations have already without adding to it.
D
89. A manufacturer of recyclable plastic containers is operating in an environment that is relatively free of uncertainty. This means that the manufacturer is operating in a ____ environment. A. simple and complex B. stable and complex C. dynamic and simple D. simple and stable E. dynamic and complex
D
92. Which of the following organizations would be MOST likely to face a dynamic/complex environment? A. Oracle B. Tyson Foods C. Whirlpool D. Merck E. JCPenney
D
96. The National Organization of Women works to influence legislators to support NOW's positions. NOW is a A. political action committee. B. government stakeholder. C. public regulator. D. lobbyist. E. multinational corporation.
D
99. ____ gives preference to domestic producers through content or price restrictions. A. A maquiladora B. Nationalization C. Privatization D. Buy national legislation E. A boycott
D
112. Which of the following statements about medium-sized international business organizations is TRUE? A. Many are still primarily domestic organizations. B. They are much more selective about the markets they enter than are MNCs . C. They depend more on international specialists to help them manage their foreign operations than do MNCs. D. They tend to compete with foreign businesses in their own domestic market. E. All of these choices
E
113. Which of the following statements concerning the relationship between managerial skills and managers' activities is TRUE? A. Conceptual skills are probably most important at the level of the first-line supervisor. B. Good interpersonal skills are absolutely essential to a manager's success. C. Diagnostic and analytic skills are important in the leader role. D. Technical skills are most important to top managers. E. The mix of skills required of a manager depends on the level of management at which he or she works.
E
119. Which of the following statements about interpersonal skills is TRUE? A. Interpersonal skills are most important for top-level managers. B. Interpersonal skills are most important for middle-level managers. C. Interpersonal skills are most important for first-line managers. D. Interpersonal skills are used by technical personnel, not managers. E. Interpersonal skills are important at all organizational levels.
E
124. The ability to prioritize work, to work efficiently, and to delegate appropriately is a(n) ____ skill. A. operational B. knowledge C. conceptual D. technical E. time-management
E
31. Coca-Cola is based out of Atlanta but reaches into hundreds of countries. The product is locally packaged, but the cola inside is essentially the same throughout the world. Coca-Cola is edging closer to being a(n) ____ business. A. international B. domestic C. multinational D. intercontinental E. global
E
14. The Sarbanes-Oxley Act requires CIOs to personally vouch for the truthfulness and fairness of their firms' financial disclosures. True False
FALSE
6. Licensing is the easiest way of entering a new market. True False
FALSE
34. Which of the following statements about organization culture is TRUE? A. Culture determines the feel of an organization. B. Organization culture is the foundation of the internal environment of an organization. C. Organization culture defies objective measurement or observation. D. Companies that have a strong culture tend to be more effective than companies that have a weak culture. E. All of these choices
E
36. Which of the following describes a determinant of organization culture? A. The story of how the founder of the company mixed cosmetics at her kitchen table B. Its slogan, "We are what every woman desires." C. The memory of when the company was merged with another cosmetics manufacturer D. Its success in developing and marketing a line of hypoallergenic cosmetics E. All of these choices
E
41. Over the past ten years, more than 50 percent of the promotions to partner at the law firm of Smithers and Johnson have been given to women. This trend could be explained by A. the firm's realization that women would improve the quality of the legal service provided by the firm. B. affirmative action legislation. C. an increase in the number of female lawyers graduating from law school. D. the increased number of women in the labor force. E. All of these choices
E
44. Which of the following is NOT a way in which the organizational context contributes to the use of unethical practices? A. A manager becomes aware of an unethical practice, but allows it to continue. B. Unethical activity is encouraged as long as it is in the best interests of the firm. C. Rewards are provided to those who succeed at the cost of others. D. An employee is promoted for finding a way around a legal regulation designed to protect the environment. E. A manager decides to hire a relative to a position for which the relative is qualified.
E
49. China requires foreign companies to form ____ with Chinese companies so that the Chinese get access to the latest technology. China forces a(n) ____ strategy. A. importing/exporting B. licensing C. outsourcing D. direct investment E. a joint venture/strategic alliance
E
57. The Sarbanes-Oxley Act requires the ____ to vouch for the truthfulness and fairness of the firms' financial disclosures. A. CEO B. CFO C. COO D. CEO and CFO E. CEO, CFO, and COO
E
57. The correct sequence in which a manager should accomplish the four basic management functions A. is planning-organizing-leading-controlling. B. is organizing-planning-leading-controlling. C. is organizing-leading-planning-controlling. D. is leading-controlling-organizing-planning. E. depends on the prevailing circumstances.
E
58. Which of the following is a reason that virtually every organization is affected by the international dimension? A. A flexible currency exchange rate B. A large number of people emigrating from their homelands to other parts of the world C. Political unrest in various countries D. The expansion of workforces E. Advances in transportation and communication technology
E
62. Working Mother magazine recognized General Mills as one of the top ten companies for working families. General Mills was described as a leader in responding to employee needs for child care, flexible scheduling, and women's advancement. You can infer that General Mills agrees with the ____ argument. A. resource acquisition B. systems flexibility C. cost D. marketing E. All of these choices
E
65. Which of the following arguments for diversity are related? A. Cost and resource acquisition B. Problem solving and marketing C. Marketing and cost D. Systems flexibility and cost E. Problem solving and creativity
E
69. Companies that take a(n) ____ stance to social responsibility cross the ethical or legal line that separates acceptable from unacceptable practices, and often deny or cover up their actions. A. accommodative B. reactive C. participative D. defensive E. obstructionist
E
74. Genzyme is a pharmaceutical company that manufactures Cerdase, a drug that treats a genetic illness called Gaucher's disease, which is a life-threatening illness that affects 20,000 people worldwide. A year's supply of the drug costs $200,000. Given what you know about the various approaches to social responsibility, you might assume that Genzyme takes a(n) ____ stance. A. reactive B. obstructionist C. proactive D. accommodative E. defensive
E
78. Companies that meet their economic and legal responsibilities but do not go beyond them are exhibiting a(n) ____ approach to social responsibility. A. reactive B. obstructionist C. proactive D. accommodative E. defensive
E
90. A dynamic environment is one that A. contains several competitors. B. contains several regulators. C. has low levels of uncertainty. D. changes very little and/or very slowly. E. changes rapidly and/or frequently.
E
92. Pluralism means that A. the organization shares a common culture. B. the organization's employees speak more than one language. C. the organization culture encourages diversity. D. every ethnicity is represented in the workforce. E. every group represented in the organization works to better understand every other group.
E
93. During a recession, governments tend to increase ____ to help protect domestic producers by directly adding to the cost of foreign goods. A. import quotas B. export restraints C. buy domestic laws D. export tariffs E. import tariffs
E
93. When every individual has the opportunity to influence the organization's culture and norms, ____ has occurred. A. full structural integration B. equality C. an absence of discrimination and prejudice D. cultural identification E. pluralism
E
96. A research and development company has been asked to see if a rare flower found only in the Amazon River Valley has the potential to shrink certain types of brain tumors. Since there is only a limited supply of the flower, the lab supervisor has to take on the decisional role of ____ to make sure that each scientist gets an equitable amount. A. negotiator B. disseminator C. monitor D. liaison E. resource allocator
E
1. Ethics are cultural beliefs about whether behavior, actions, or decisions are right or wrong. True False
FALSE
9. The glass ceiling applies to all minorities. True False
FALSE
Pragna is in charge of a call center. She is always at her desk and ready to start work at 8:00 a.m., and she never leaves before 5:00 p.m. The people who work for her have noticed this pattern, and they model their attendance behavior after her. Pragna's actions are part of the monitor role as defined by Mintzberg. True False
FALSE
Technical skills are more important at the level of the middle manager than at other management levels. True False
FALSE
When Tom testifies before Congress about his company's philanthropic support for math and science education, he is fulfilling the disseminator role. True False
FALSE