Principles of Management (Ch 6, 7, 8, 9) (only thorugh 6.2 for now)
1. In decentralized companies, many important decisions are made at higher levels of the hierarchy, whereas in centralized companies, decisions are made and problems are solved at lower levels by employees who are closer to the problem in question. TRUE OR FALSE
FALSE
12. Cultures that emerge within different departments, branches, or geographic locations are called countercultures. TRUE OR FALSE
FALSE
2. According to Fiedler's contingency theory, a high LPC score indicates a task-oriented person. TRUE OR FALSE
FALSE
4. Employees often believe that centralized companies provide greater levels of procedural fairness to employees. TRUE OR FALSE
FALSE
4. Fiedler's contingency theory predicts that in "favorable" and "unfavorable" situations, a high LPC leader is more likely to succeed than a low LPC leader. TRUE OR FALSE
FALSE
4. Passive management by exception involves leaving employees to do their jobs without interference, but at the same time proactively predicting potential problems and preventing them from occurring. TRUE OR FALSE
FALSE
6. Companies that have innovative cultures are characterized by a tall hierarchy. TRUE OR FALSE
FALSE
7. According to the situational leadership theory, when employees are at the earliest stages of developing, the leaders should be highly supportive and less directive. TRUE OR FALSE
FALSE
9. People-oriented cultures are predictable, rule-oriented, and bureaucratic. TRUE OR FALSE
FALSE
3. According to Drucker, effective MBO managers focus on the activity, not the result. TRUE OR FALSE
False
6. Which of the following statements is true regarding a highly formalized organization? a. It has very few written rules and regulations. b. It is generally associated with reduced motivation. c. It makes employee behavior less predictable. d. It is generally associated with increased job satisfaction. e. It leads to increased innovativeness.
It is generally associated with reduced motivation.
What are the 5 visual elements of culture?
Mission statements, rituals, rules and policies, physical layout, and stories and language
11. In team-oriented organizations, members tend to have more positive relationships with their coworkers and particularly with their managers. TRUE OR FALSE
TRUE
12. According to the path-goal theory of leadership, supportive leadership is predicted to be effective when employees are under a lot of stress or when they are performing boring and repetitive jobs. TRUE OR FALSE
TRUE
2. Research suggests that individual and organizational performance increases when an evaluation system based on specific goals and objectives is implemented. TRUE OR FALSE
TRUE
3. Modular organization is a form of boundaryless organization in which all nonessential functions are outsourced. TRUE OR FALSE
TRUE
3. Planning typically starts with a vision and a mission. (TRUE OR FALSE)
TRUE
4. Research shows that people who have a positive self-concept are better at coping with change. TRUE OR FALSE
TRUE
7. A formalized structure is associated with reduced motivation and job satisfaction as well as a slower pace of decision making. TRUE OR FALSE
TRUE
7. Unlike mainstream management approaches, the overriding objective in servant leadership is not necessarily getting employees to contribute to organizational goals. TRUE OR FALSE
TRUE
4. Management by objectives (MBO) involves setting company-wide goals derived from corporate strategy. TRUE OR FALSE
True
9. Which of the following leadership styles is recommended by the situational leadership theory when the employees have low competencies and low commitment levels? a. Coaching behavior b. Delegating behavior c. Supporting behavior d. Directing behavior e. Participative behavior
a. Coaching behavior
5. _____ is the extent to which an organization's policies, procedures, job descriptions, and rules are written and explicitly articulated. a. Formalization b. Authorization c. Mechanization d. Centralization e. Departmentalization
a. Formalization
5. Which of the following is most likely to be a primary function of leadership? a. Goal setting b. Training c. Recruitment d. Sales e. Appraisal
a. Goal setting
6. Which of the following leadership theories uses the concept of in-group members and out-group members to indicate the two different types of relationships leaders have with their followers? a. Leader-member exchange theory b. Fiedler's contingency theory c. Transformational Leadership Theory d. Situational leadership theory e. Path-goal theory of leadership
a. Leader-member exchange theory
6. Which of the following statements is true regarding management by objectives (MBO)? a. MBO aims to increase organizational performance by aligning the subordinate objectives throughout the organization with the overall goals set by management. b. The concept of MBO was first outlined by Michel Porter. c. To be effective MBO managers should focus on activity not result. d. An effective MBO system typically has several broad goals. e. MBO does not include ongoing tracking and feedback in the process to reach objectives.
a. MBO aims to increase organizational performance by aligning the subordinate objectives throughout the organization with the overall goals set by management.
4. Which of the following elements is characterized by shortest time horizon and highest functional specificity? a. Operating goals b. Corporate mission c. Strategic goals d. Strategic objectives e. Corporate vision
a. Operating goals
3. Which of the following statements is most likely to be true regarding passive resistance? a. Passive resisters tend to look for a new job without necessarily bringing their concerns to the attention of decision makers. b. Passive resisters actually encourage others around them to give support to the change effort. c. It involves going along with proposed changes with little enthusiasm. d. It is the most negative reaction to a proposed change attempt. e. Those who engage in passive resistance may sabotage the change effort and be outspoken objectors to the new procedures.
a. Passive resisters tend to look for a new job without necessarily bringing their concerns to the attention of decision makers.
3. Organizational culture can be thought of as consisting of three interrelated levels. At the deepest level, below our awareness, lie _____. a. assumptions b. values c. artifacts d. traditions e. norms
a. assumptions
5. Four Seasons and Ritz Carlton are among hotels who keep records of all customer requests such as which newspaper the guest prefers or what type of pillow the customer uses. This information is put into a computer system and used to provide better service to returning customers. Any requests hotel employees receive, as well as overhear, might be entered into the database to serve customers better. Based on this information we can say that Four Seasons and Ritz Carlton have a(n) _____ culture. a. detail-oriented b. innovative c. team-oriented d. people-oriented e. aggressive
a. detail-oriented
4. A _____ organization is one whose design actively seeks to acquire knowledge and change behavior as a result of the newly acquired knowledge. In such organizations, experimenting, learning new things, and reflecting on new knowledge are the norms. a. learning b. divisional c. matrix d. centralized e. modular
a. learning
2. Research shows that _____ are more committed to a change effort. a. those who have more complete information about upcoming changes b. passive resisters who do not voice their opinions c. employees in centralized organizations d. lower-level employees in an organization e. those who voice their objections
a. those who have more complete information about upcoming changes
2. According to the Organizational Culture Profile (OCP) framework, outcome-oriented cultures: a. tie rewards to performance indicators as opposed to seniority or loyalty. b. are predictable, rule-oriented, and bureaucratic. c. emphasize precision and paying attention to details. d. tend to be a misfit to a changing and dynamic environment. e. often fall short in corporate social responsibility
a. tie rewards to performance indicators as opposed to seniority or loyalty.
2. Planning typically starts with a(n) _____. a. vision and a mission b. tactical strategy c. sales target d. financial objective e. marketing strategy
a. vision and a mission
3. The Organizational Culture Profile (OCP) represents a culture with the help of seven dimensions. Which of the following is NOT one of those seven dimensions? a. Outcome-oriented b. Collectivist c. Innovative d. Stable e. Aggressive
b. Collectivist
_____ reflects the measure of an organization's commitment to individuals, communities, and the natural environment. a. SMART criteria b. Corporate social performance c. Performance evaluation d. Sustainability index e. Management by objectives
b. Corporate social performance
8. The Balanced Scorecard relies on four processes to bind short-term activities to long-term objectives. _____ is the process comprised of the ability to reflect on inferences and adjust theories about cause-and-effect relationships. a. Developing an action plan b. Feedback and learning c. Business planning d. Translating the vision e. Communicating and linking
b. Feedback and learning
1. Which of the following theories measures a leader's style using a scale called Least Preferred Coworker (LPC) scale? a. Transformational Leadership Theory b. Fiedler's contingency theory c. Situational leadership theory d. Leader-member exchange theory e. Path-goal theory of leadership
b. Fiedler's contingency theory
6. The situational leadership theory was developed by _____. a. Frederick Fiedler b. Kenneth Blanchard and Paul Hersey c. Victor Vroom and Philip Yetton d. Abraham Maslow e. Robert House
b. Kenneth Blanchard and Paul Hersey
2. Which of the following statements is true regarding the matrix structure? a. In matrix structures managers are less interdependent compared to a traditional or product-based structure. b. Matrix structures are created in response to giving particular attention to specific products or projects. c. In a matrix structure, each person reports to a single manager. d. A matrix structure hinders communication and cooperation among departments. e. Research shows that matrix structure reduces the frequency of informal and formal communication within the organization.
b. Matrix structures are created in response to giving particular attention to specific products or projects.
3. Which of the following statements is true regarding performance appraisals? a. Studies show that performance-appraisal errors are extremely easy to eliminate. b. Performance reviews help managers feel more honest in their relationships with their subordinates. c. Most organizations conduct employee performance evaluations at least four times a year. d. Performance appraisals generally decrease employee morale. e. The most common appraisal error is lack of appropriate criteria for performance evaluation.
b. Performance reviews help managers feel more honest in their relationships with their subordinates.
1. Which of the following statements is true regarding task-oriented leader behaviors? a. When leaders demonstrate task-oriented behaviors, employees tend to be more satisfied and react more positively. b. When leaders are task-oriented, productivity tends to be a bit higher than when leaders are people-oriented. c. In large companies, task-oriented behaviors were found to be more effective than in small companies. d. Task-oriented leader behavior typically involves showing concern for employee feelings and treating employees with respect. e. There is also some evidence that working under a leader with very high levels of people-oriented behaviors may cause burnout on the part of employees.
b. When leaders are task-oriented, productivity tends to be a bit higher than when leaders are people-oriented.
1. All of the following statements are true regarding an organizational culture EXCEPT: a. to the extent that shared values are proper for the company in question, company performance may benefit from culture. b. as compared to organizational rules and regulations, culture is a less powerful way of controlling and managing employee behaviors. c. according to several business leaders, corporate culture is as important as corporate strategy for business success. d. organizations that have a rare and hard-to-imitate culture enjoy a competitive advantage. e. culture, or shared values within the organization, may be related to increased performance.
b. as compared to organizational rules and regulations, culture is a less powerful way of controlling and managing employee behaviors.
2. Out of all personality traits included in the big five personality traits, _____ has the strongest relationship to both leader emergence and leader effectiveness. a. agreeableness b. extraversion c. neuroticism d. openness to experience e. conscientiousness
b. extraversion
1. Corporate social responsibility (CSR) is about how companies: a. identify a target market before introducing a new product line. b. manage their business processes to produce an overall positive effect on society. c. introduce a new product in the market d. interact with their competitors in the market. e. develop their marketing strategy.
b. manage their business processes to produce an overall positive effect on society.
3. Which of the following statements is most likely to be true regarding compliance? a. They tend to look for a new job without necessarily bringing their concerns to the attention of decision makers. b. They actually encourage others around them to give support to the change effort. c. It involves going along with proposed changes with little enthusiasm. d. It is the most negative reaction to a proposed change attempt. e. Those who engage in passive resistance may sabotage the change effort and be outspoken objectors to the new procedures.
c. It involves going along with proposed changes with little enthusiasm.
7. Management by objectives (MBO) was first outlined by _____ in 1954 in The Practice of Management. a. Abraham Maslow b. Michel Porter c. Peter Drucker d. Henry Fayol e. Henry Mintzberg
c. Peter Drucker
5. With reference to the transformational leadership theory, _____ is a method used by a transactional leader and it involves leaving employees to do their jobs without interference, but at the same time proactively predicting potential problems and preventing them from occurring. a. contingent rewards b. individualized consideration c. active management by exception d. intellectual stimulation e. passive management by exception
c. active management by exception
2. With reference to the transformational leadership theory, _____ is a tool used by a transformational leader and it involves challenging organizational norms and status quo, and encouraging employees to think creatively and work harder. a. charisma b. contingent rewards c. intellectual stimulation d. individualized consideration e. passive management by exception
c. intellectual stimulation
10. According to the path-goal theory of leadership, participative leadership a. provides specific directions to employees when they are experiencing role ambiguity on the job. b. works well when employees are under a lot of stress. c. is effective when employees have a high internal locus of control. d. is effective when employees know exactly how to perform their jobs, but their jobs are unpleasant. e. is effective when employees are performing boring and repetitive jobs
c. is effective when employees have a high internal locus of control.
8. According to the Organizational Culture Profile (OCP) framework, _____ cultures value fairness, supportiveness, and respecting individual rights. a. team-oriented b. stable c. people-oriented d. innovative e. aggressive
c. people-oriented
1. The SMART criteria consist of all of the following characteristics EXCEPT: a. time-bound. b. realistic. c. special. d. aggressive. e. measurable.
c. special
2. _____ is the degree to which decision-making authority is concentrated at higher levels in an organization. a. Departmentalization b. Authorization c. Formalization d. Centralization e. Mechanization
d. Centralization
3. According to the transformational leadership theory, which of the following tools is most likely to be used by a transactional leader? a. Inspirational motivation b. Charisma c. Individualized consideration d. Contingent rewards e. Intellectual stimulation
d. Contingent rewards
1. Which of the following is one of the factors that are most important in the creation of an organization's culture? a. Reward system b. New employee onboarding c. Attraction-selection-attrition d. Industry demands e. Structure of the organization
d. Industry demands
2. Which of the following statements is true regarding active resistance? a. It involves being disturbed by changes without necessarily voicing these opinions. b. It involves going along with proposed changes with little enthusiasm. c. Active resisters tend to look for a new job without necessarily bringing their concerns to the attention of decision makers. d. It is the most negative reaction to a proposed change attempt. e. Active resisters actually encourage others around them to give support to the change effort.
d. It is the most negative reaction to a proposed change attempt.
3. Which of the following statements is true regarding decentralized organizations? a. As compared to centralized companies, decentralized companies give less authority to lower-level employees. b. Employees often believe that centralized companies provide greater levels of procedural fairness to employees as compared to decentralized companies. c. As compared to employees in the centralized companies, employees in the decentralized companies are less likely to feel empowered. d. Job candidates are more likely to be attracted to decentralized organizations than centralized organizations. e. In a decentralized company, many important decisions are made at higher levels of the hierarchy.
d. Job candidates are more likely to be attracted to decentralized organizations than centralized organizations.
5. Which of the following is an area in a balanced score card that explores the effectiveness of management in terms of measures of employee satisfaction and retention and information system performance? a. Internal processes b. Financial performance c. External environment d. Learning and growth e. Customers
d. Learning and growth
12. Which of the following statements is true regarding a mechanistic structure? a. Mechanistic structures are highly decentralized. b. Mechanistic structures score low on degree of formalization. c. Mechanistic structures are suitable for innovativeness and taking quick action. d. Mechanistic structures are those that resemble a bureaucracy. e. Mechanistic structures are highly flexible.
d. Mechanistic structures are those that resemble a bureaucracy.
9. _____ group jobs based on similarity in functions. a. Decentralized organizations b. Organizations with individualist cultures c. Highly formalized organizations d. Organizations using functional structure e. Highly centralized organizations
d. Organizations using functional structure
5. Which of the following is one of the three conditions used in Fiedler's contingency theory for determining the situational favorableness? a. Organizational structure b. Commitment levels of the employees c. Organizational culture d. Position power e. Competencies of the employees
d. Position power
8. Which of the following statements is true regarding flat structures? a. Flat structures have several layers of management between frontline employees and the top level. b. As compared to tall structures, flat structures are better at satisfying security needs of employees. c. As compared to tall structures, employees in flat structure experience lower levels of role ambiguity. d. Research indicates that flat organizations provide greater satisfaction for employees. e. In flat structures, the number of employees reporting to each manager tends to be smaller.
d. Research indicates that flat organizations provide greater satisfaction for employees.
1. According to the Organizational Culture Profile (OCP) framework, companies with _____ cultures value competitiveness and outperforming competitors. a. innovative b. stable c. team-oriented d. aggressive e. people-oriented
d. aggressive
7. According to the Organizational Culture Profile (OCP) framework, innovative cultures: a. value competitiveness and outperforming competitors. b. emphasize achievement, results, and action as important values. c. are collaborative and emphasize cooperation among employees. d. are flexible, adaptable, and experiment with new ideas. e. value fairness, supportiveness, and respecting individual rights.
d. are flexible, adaptable, and experiment with new ideas.
3. People with high _____ demonstrate a high level of self-awareness, motivation, empathy, and social skills. a. conscientiousness b. self-esteem c. extraversion d. emotional intelligence e. general mental ability
d. emotional intelligence
2. Leaders using _____ decision making leave employees alone to make the decision; the leader provides minimum guidance and involvement in the decision. a. participative b. supportive c. authoritarian d. laissez-faire e. democratic
d. laissez-faire
3. According to one estimate, 35% of managers who start a new job fail in the new job and either voluntarily leave or are fired within one and a half years. Of these, over 60% report _____ as the primary reason for this failure. a. mismatch between personal values and organizational values b. lack of formal orientation program c. lack of appropriate training d. not being able to form effective relationships with colleagues e. inappropriate rules and policies
d. not being able to form effective relationships with colleagues
The internal area of the Balanced Scorecard looks at: a. customer satisfaction and retention. b. assessments of measures as operating costs and return-on-investment. c. the effectiveness of management in terms of information system performance. d. organizational efficiency. e. employee satisfaction and retention.
d. organizational efficiency
1. Which of the following big five personality traits is related to being organized, systematic, punctual, achievement-oriented and punctual? a. Agreeableness b. Extraversion c. Neuroticism d. Openness to experience e. Conscientiousness
e. Conscientiousness
8. Which of the following leadership styles is recommended by the situational leadership theory when the employees have high competencies and high commitment levels? a. Coaching behavior b. Mentoring behavior c. Authoritative behavior d. Directing behavior e. Delegating behavior
e. Delegating behavior
2. The Dow Jones Sustainability Index looks at competence in five areas. Which of the following is NOT one of these five areas? a. Customer and product b. Strategy c. Governance and stakeholder d. Human e. Infrastructure
e. Infrastructure
3. In contrast with Lewin's three-stage model of planned change, some management experts in the 1990s began to propose that change is - or ought to be - a continuous process. Which of the following types of organizations is most likely to support such continuous change? a. Highly centralized organizations b. Highly formalized organizations c. Matrix organizations d. Modular organizations e. Learning organizations
e. Learning organizations
6. The balanced scorecard, as outlined by Robert Kaplan and David Norton, focuses on four types of measures. Which of the following is NOT one of these four perspectives? a. Financial b. Customer c. Learning and growth d. Internal e. Technical
e. Technical
10. According to the Organizational Culture Profile (OCP) framework, team-oriented cultures: a. are flexible, adaptable, and experiment with new ideas. b. value competitiveness and outperforming competitors. c. often fall short in corporate social responsibility. d. tend to be a misfit to a changing and dynamic environment. e. are collaborative and emphasize cooperation among employees.
e. are collaborative and emphasize cooperation among employees.
4. According to the Organizational Culture Profile (OCP) framework, stable cultures: a. emphasize achievement, results, and action as important values. b. emphasize precision and paying attention to details. c. are flexible, adaptable, and experiment with new ideas. d. are collaborative and emphasize cooperation among employees. e. are predictable, rule-oriented, and bureaucratic.
e. are predictable, rule-oriented, and bureaucratic.
2. This process that maintains the organizational culture is known as _____. a. organizational socialization b. networking c. mentoring d. onboarding e. attraction-selection-attrition
e. attraction-selection-attrition
2. An organizational culture that _____ is most likely to be suitable for a company in the high-tech industry. a. encourages a high respect for tradition b. is characterized by hierarchy and high centralization c. displays a strong preference for upholding rules and procedures d. is characterized by stability e. encourages innovativeness and adaptability
e. encourages innovativeness and adaptability
1. Research suggests that when an evaluation system based on specific goals and objectives is implemented, _____. a. employee satisfaction with the evaluation system increases b. managers' satisfaction with the evaluation system decreases c. employee satisfaction with the evaluation system decreases d. the evaluation system becomes complex and time consuming e. individual and organizational performance increases
e. individual and organizational performance increases
4. The most common appraisal error is _____. a. conducting appraisal without prior preparation b. lack of appropriate criteria for performance evaluation c. conducting appraisal only once a year d. dedicating very less time for appraisals e. leniency
e. leniency
1. Research shows that _____ structures increases the frequency of informal and formal communication within the organization. a. centralized b. modular c. functional d. divisional e. matrix
e. matrix
10. In _____, departments represent the unique products, services, customers, or geographic locations the company is serving. a. highly formalized organizations b. organizations using functional structure c. highly centralized organizations d. decentralized organizations e. organizations using divisional structure
e. organizations using divisional structure
2. A _____ reflects a person's values and philosophy of life. a. personal goal b. strategy c. key role d. personal vision e. personal mission
e. personal mission
3. According to the Fiedler's contingency theory: a. a low LPC score indicates a people-oriented person. b. if the task is relatively unstructured, the situation is very favorable. c. a high LPC score indicates a task-oriented person. d. a person with low LPC score can separate his liking of a person from his ability to work with that person. e. when situational favorableness is medium, high LPC leadership should be used.
e. when situational favorableness is medium, high LPC leadership should be used.
11. According to the path-goal theory of leadership, directive leadership is effective when: a. employees have a high internal locus of control. b. employees have high levels of ability and when the decisions to be made are personally relevant to them. c. employees know exactly how to perform their jobs, but their jobs are unpleasant. d. employees are experiencing role ambiguity on the job. e. employees are performing boring and repetitive jobs.
employees are experiencing role ambiguity on the job.
1. According to the transformational leadership theory, transformational leaders ensure that employees demonstrate the right behaviors because the leader provides resources in exchange. TRUE OR FALSE
false
1. In contrast to objectives, goals are very precise, time-based, measurable actions that support the completion of a goal. (TRUE OR FALSE)
false
OCEAN
openness, conscientiousness, extraversion, agreeableness, neuroticism
11. Functional structures tend to be effective when an organization does not have a large number of products and services requiring special attention. TRUE OR FALSE
true
