Principles of Management

A performance-appraisal method that utilizes evaluation information from supervisors, employees, and coworkers is known as -paired-comparison feedback -programmed-feedback decision -behaviorally anchored rating scale -360-degree feedback -graphic rating scale

360-degree feedback

Preparation of which of the following is the most logical first step in developing an annual operating plan? -A sales forecast by product -A production schedule by product -A flow-of-funds statement by product -A plant and equipment requirement forecast -A pro forma income statement and balance sheet

A sales forecast by product

The hierarchy of needs theory argues that deficiency needs must be met before the push to satisfy growth needs drives personal growth. The individual most commonly associated with this theory is

Abraham Maslow

Which of the following is the primary purpose of the management-by-objectives (MBO) approach? -Aligning goal setting and planning -Creating a dynamic and complex work environment -Reducing employee resistance to change -Implementing standard operating procedures -Implementing a decision rule to respond to a designated problem

Aligning goal setting and planning

Decentralization tends to be encouraged by which of the following business trends? -Product diversification -Telecommuting -Geographical expansion of operations -All of above

All of above

The span of control most appropriate in a given organization is primarily influenced by which of the following? -Types of services or products being produced -Amount of supervision needed by subordinates -Amount of authority given to a supervisor -Number of hierarchical levels within the organization -Presence of work teams

Amount of supervision needed by subordinates

What conflict resolution process where a 3rd party leads both groups to a resolution process, and has the power to bind both groups to a resolution (like a judge)

Arbitration

A type of control device for assessing the progress of planned activities and the expenditure of resources allocated to their accomplishments is referred to as -a strategic plan -an organizational chart -a tactical plan -a budget -a proposal

Budget

Which of the following management activities is most typically described as a controlling function? -Goal setting -Purchasing -Budgetary review -Staffing -Recruiting

Budgetary review

Which organizational approach is most to provide standardization and efficiency/lower cost? -Decentralized -Informal -Geographic -Virtual -Centralized

Centralized

The practice in large companies of establishing autonomous divisions whose heads are entirely responsible for what happens in the division is referred to as -management by exception -decentralization of authority -delegation of authority -integration -informal organization

Decentralization of authority

Which of the following should be the first step in a decision-making process? -Implementing decision -Assigning the problem to qualified personnel -Considering all alternatives -Knowing when to decide -Defining the problem

Defining the problem

What forecasting technique involves soliciting best-guesses and opinions from a broad variety of experts and then summing or averaging their responses? -Delphi techniques -Group summation analysis -Oswald-Baker scenario assessment -Strategic averaging -Team thinking

Delphi techniques

Which of the following is the primary concern of employees responsible for strategic planning in a company? -Monitoring cash flows -Determining the contribution each subunit should make to the overall corporation -Determining how to accomplish specific tasks with available resources -Determining how to pursue long-term goals with available resources -Preparing the annual statement

Determining how to pursue long-term goals with available resources

Which competitive strategy from Porter's generic model uses unique product aspects to convince customers to pay a higher price? -Cost leadership -Focused cost leadership -Focused marketing -Differentiated competition -Advertising model

Differentiated competition

A home builder dominates a market by offering attractive options, higher quality, and value-added services. Which of the following competitive strategies has the home builder adopted? -Cost leadership -Differentiation -Price leadership -Generic -Organizing

Differentiation

Which of the following people is associated with the development of the Theory X and Theory Y model? -Abraham Maslow -Elton Mayo -Douglas McGregor -Frederick Taylor -Lillian Gilbreth

Douglas McGregor

What economic principle describes the reduction of unit costs that come when the number of units produced is increased?

Economies of Scale

According to Maslow, the need to feel genuinely respected by peers, both in and out of the work environment, is included in which of the following need classifications? -Physiological -Safety -Stability -Esteem -Self-Actualization

Esteem

In the Generic Competitive Model, which of these would describe a competitor who concentrates on a small market niche and attempts to offer products to that niche at the lowest price? -Generic Cost Leader -Generic Differentiated Competitor -Focused Cost Leader -Focused Differentiated Competitor -Niche Price Competitor

Focused Cost Leader

Which generic competitive strategy targets a very specific niche market and offers customers a unique set of product benefits?

Focused Differentiation

Who among the following was important in the scientific management field for promoting motion studies? -Max Weber -Henri Fayol -Abraham Maslov -Frank and Lillian Gilbreth -Henry Ford

Frenk and Lillian Gilbreth

Which of the following organizational designs groups employees by what they do? -Functional -Product -Geographic -Market -Authority-centered

Functional

Which of the following best illustrates informal organization? -Line authority, such as that of the field marshal and battalion commander in the military -Staff authority, such as that of personnel or cost control in manufacturing -Functional authority, such as corporate supervision of the legal aspect of pension plans in branch plants -Groupings based on position titles -Groupings based on such factors as technical ability, seniority, and personal influence

Groupings based on such factors as technical ability, seniority, and personal influence

The manager most famous for developing the earliest model of management functions, which led to the modern POLC model we use today is:

Henri Fayol

Which of the following is NOT an external environment force on an organization? -sociocultural trends -technology -economy -political trends -human resources

Human Resources

In accordance with Herzberg's 2-factor theory, which factor can demotivate but are not likely to motivate employees?

Hygiene Factors

What piece of US law imposes a set of standards to minimize environmental impact?

ISO 14000

Which of the following best describes managerial ethics? -It is the social obligation that the individual manager has to fulfill. -It is a statement of the social responsibility of the organization. -It is the standard of conduct that guides a person's decisions and behavior. correct. -It is the mission statement of the organization. -It is a behavior that conforms to legal principles of justice.

It is the standard of conduct that guides a person's decisions and behavior.

Which of the following is the most accurate description of a grapevine in an organization? -It is a constant source of disruptive information. -It follows the chain of command. -It can be suppressed once it is recognized. -It plays an important role in organizations. -Most managers believe that it is a positive source of information.

It plays an important role in organizations.

Which of the following practices enhances job content by building into the job more motivating factors such as responsibility, achievement, recognition, and personal growth, as advocated by Frederick Herzberg? -Job enlargement -Job enrichment -Job rotation -Job re engineering -Job intensification

Job Enrichment

the social and informal sources of influence that you use to inspire action taken by others

Leadership

The management process that involves motivating people to work hard to reach organizational goals is:

Leading

What conflict resolution process is like a Arbitrator but does not have any power to bind both groups only guide and give opinions?

Mediator

The process of discovering relationships and patterns in large amounts of data is called data... -mining -clustering -encryption -networking -warehousing

Mining

The statement that describes an organization's reason for being is best described as:

Mission Statement

Which of the following best describes the situation in which an employee arrives for work on time in order to avoid being placed on probation for a second time? -Positive Reinforcement -Negative Reinforcement -Extinction -Intermittent reinforcement -Cognitive learning

Negative reinforcement

Which type of decision typically involves extensive data collection and detailed analysis? -Program decision -Critical decision -Time-sensitive decision -Group decision -Non-programmed decision

Non-programmed decision

Which of the following is NOT an input, according to equity theory? -Effort -Experience -Education -Seniority -Pay Incentives

Pay Incentives

Which of the following pairs of functions of management are most closely interdependent? -Staffing and organizing -Staffing and controlling -Planning and leading -Planning and Controlling -Disciplining and recruiting

Planning and Controlling

In Michael Porter's five forces model of global environmental scanning, which of the following is one of the five forces? -Sociocultural factors -Inflation -Technology Transfer -Material artifacts of culture -Power of Suppliers

Power of Suppliers

Which of the following words is NOT a step in the management process? -planning -leading -producing -controlling -organizing

Producing

What curve shows the progress of sales of a new product from initial launch to final decline?

Product Life Cycle Curve

Which of the following control techniques is most likely to emphasize the importance of time? -Break-even charts -Physical standards -Quality circles -Variable budgeting -Program Evaluation and Review Technique (PERT)

Program Evaluation and Review Technique (PERT)

Intrinsic rewards can be classified as rewards that do which of the following? -Allow the employee to establish flexible working hours. -Provide a sense of achievement and accomplishment. -Create work coordination among all employees. -Improve communication effectiveness. -Allow greater span of control.

Provide a sense of achievement and accomplishment.

Which of the following is a quantitative technique that can be used to predict employee performance based on such factors as education, seniority, job-related skills, and job satisfaction? -Time-series analysis -Econometric modeling -Sales force composition -Econometric indicators -Regression modeling

Regression modeling

Which of these is a strategic planning tool that allows the assessment of an organization's strengths and weaknesses in responding to possible external events? -Strength assessment -Event Analysis Technique (EAT) -SWOT Analysis -Capacity Review -Strategic Assessment

SWOT Analysis

What piece of US law requires a corporation to publish a corporate code of ethics?

Sarbanes-Oxley Act

The preparations that a small town might make for a visit by the President of the United States would be considered what type of plan?

Single-use

involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment.

Strategic Planning

Which model classifies products as stars, question marks, cash cows, or dogs?

The Boston Consulting Group Matrix

Which of the following can be best determined by consulting an organization chart? -The size of the company -The distribution of company resources -The nature of work performed -The connections of positions -he quality of management of the firm

The connections of positions

Which of the following describes the critical path in a Program Evaluation and Review Technique (PERT) process? -Parts that require the most costly materials -The most time-consuming sequence of events and activities -The shortest route to the project completion -The central guideline for quality control -The property insurance

The most time-consuming sequence of events and activities

Which of the following is most commonly used to measure the total productivity of a company? -The ratio between total outputs and total inputs -The ratio between fixed costs and variable costs -The ratio between contribution margin and total revenue -The ratio between the break-even point and total output -The ratio between total inputs and total capital

The ratio between total outputs and total inputs correct

Which term best describes leaders who guide or motivate their followers in the direction of established goals by stressing rewards and the consequences of not conforming to expectations?

Transactional

A manager decides to lay off 10 percent of the workforce and justifies the action by noting that 90 percent still have jobs and the company will remain solvent. This manager has utilized which of the following views of ethics? -Rights of view ethics -theory of justice view of ethics -Integrative social contracts view of ethics -Utilitarian view of ethics correct -Golden rule view of ethics

Utilitarian view of ethics

A large span of control throughout an organization invariably results in -low morale -high morale -an excess workload for each manager -a flat (horizontal) organizational structure -a tall (vertical) organizational structure

a flat (horizontal) organizational structure

Very tightly-coupled control requires close constant feedback and frequent management corrections. What perception can this produce among employees? -confidence in management -a sense of belonging and trust -a sense of distrust and micromanagement -that management is keeping secrets from employees -that management is unaware of what is going on in the organization

a sense of distrust and micromanagement

Large organizations are likely to structure their work operations and personnel in any of the following ways EXCEPT -accounting -divisional -geographic -market -product

accounting

Praise received from an employee's peers is best described as an example of -an extrinsic reward -an intrinsic reward -low valance -high instrumentality -high directive leadership

an extrinsic reward

Which of the following theories of motivation states that people are demotivated by rewards that are perceived as unfair? -Expectancy theory -Hierarchy of needs theory -Justice Theory -Theory X -Equity theory

equity theory

Expectancy theory tells us that employees will only be motivated by a promised reward -if they cannot get a better promise elsewhere -if they expect to be able to achieve the goal and earn the reward -if they personally trust the manager who has promise the reward -if they have earned the reward in the past -if the reward depends only on their own hard work

if they expect to be able to achieve the goal and earn the reward

McGregor's Theory Y states that workers -naturally dislike work and avoid it when possible -have lower capacity for intrinsic motivation than do managers -naturally enjoy work and see it as a source of fulfillment and satisfaction -should be monitored closely while performing critical tasks -naturally distrust managers and seek independence

naturally enjoy work and see it as a source of fulfillment and satisfaction

The ratio of output to input gives a measure of

productivity

Frederick Taylor is considered a pioneer in the school of management referred to as the

scientific management school

The number of subordinates who directly report to a superior refers to the manager's -span of control -organizational role -organizational structure -chain of command -general staff

span of control

The break even point is defined as the level of production at which -fixed costs are covered by revenue -variable costs are covered by revenue -total revenue is sufficient to cover total costs -marginal revenue equals marginal cost -the law of diminishing returns is activated

total revenue is sufficient to cover total costs